Chailty registration number NIC107866 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWNAND CONN0￿ AND DROMORE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE CONTENTS Page Charity information Governors, report Independent oxaminerfs report Statement of finandal activltles Balance sheet Notes to Ihe financial statements 10-15 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE LEGALAND ADMINISTRATIVE INFORMATION Governors Ex-officio Governor(s) The Bishop of Down and Drom0￿. The Right Reverend D A Mcclaf (whalr) The Bishop of Connor. The Right Reverend G T W Dawson. {C￿ChaIr) Clerical Representative Govemors Down: The Revd C Darling until June 2023 Connor: The Rev DrA P Campbell. The Rev Brian Lacef from June 2023 Dromore: The Venerable T R West until June 2023 The Rev S Cooke" from June 2023 Lay Representative Governors Down.. Mr J E 8unting until June 2023 Connor: Mr N R Boll Mr R Gilberf until June 2023 Dromore.. Mr S Cassells. Honorary Troasurer Mr N R Bolt Honorary Secretary Mr J E Bunting until June 2023 The Rev DrA P Campbell Irom June 2023 "Governors marked an asterix are Trustees ftlr purposes of compllance with the Charity Commk8slon of Northern Ireland. THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE LEGAL AND ADMINISTRATIVE INFORMATION HMRC Charlty number NIC107866 Nl Charfty number 107866 Indepondent examlner Moore (N.I.) LLP 4th Floor Donegall House 7 Donegall Square North Belfast BT1 5GB Bankern AIB 35 Unlv8rsity Road Belfast BT7 1ND Sollcltors Edwards & Co Sollcitors 28 Hill Street Belfast 8T1 2LA THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE GOVERNORS. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Govemors present their annual report and financial statements for the year ended 31 December 2023. The financial ststements have been prepared in accordance with the accounting poliaes set out in note 1 to the financial statements and comply with the Charitie5 Act (Northem ITeland) 2008 & 2013 and "Accounting and Reporting by Charthes.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Repubfic of Ireland (FRS 1021 (effective 1 January 2019)". Objectives and activitips The principal objective of the chafity is to manage the property and financial ass8ts vested wth il as educational endowments, arising from the transfer to il of parochial school properbes within the present dioceses of Down and Dromore, and Connor. Proceeds from the disposal of redundant school properties are held upon trust by the Charity, and the net income therefrom is transferred annualty to the respective parishgs under the ternis of the scheme. The maln activities of the charity remain urtchanged since last year. Public Benefft The expression of the precepts of Ihe Christian religion through engagement with the public, and in particularfy by way of promoting religious education, is a public benefft. This can be measured and emdenced through increased social integration and pasloral care especially of the young. The direct benefits of this element of religious life include the encouragement of learning, the promsion of premises for soaal and religious purpose$. community cohesion through church based organisations an(i improved edueAtional outcomes. The beneficiariès are the general public as eVIden￿d by social and intei4enominational organisations and church members through the provision of religious education at all levels and indeed for all ages. Any private benefit arising out of the futfilment of this religious educational ministry is essential lo the fulfilment of the purpose of the charity. No trustee receives remuneration, reward or other privale benefit for carrying out their INstee responsibility with the exception of one Ccpopted trustee and secretarial staff who help with the provislon of financial and other services through the agency of a separate b¢)dy to which the charity makes payment. The Governors have paid due regard lo guidance issued by the Charity Commisslon in deThding what actlvltles the Charity should undertake. Achievements and performance SignifiG8nt activities and achievements against otyecbves The Governors continued to review all operating and financial pr0￿dureS. The Charity completed an active year with net incorne of {£167.060 (2022: net expendtture of £430,707). As the Charity makes no direct use of the propertres impressed with it under Scheme 89. the parishes, being responslble as beneficial users, are ￿qUired to insure. maintain and develop the properties for their own needs. Accordingly, the Govemors have decided it is not appropriate to apply a depreciation sum on any of Ihern and thus have allocated a rate of depreCIat￿n of 0% per annum. The basic value is established by insurance replacement values or govemor's estimates. Dividend Income decreased by £9.603 or 8%. Donations from parishes increased to £550 (2022: £257). Unre51ricted charitable expendrture increased by £6.185. Core administration costs increased to £4,345 (2022= £640). Governance costs decreased to £1.620 (2022." £2,511). THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE GOVERNORS. REPORT (CONTINUED> FOR THE YEAR ENDED 31 DECEMBER 2023 Flnanclal rovlew The Ilnancial slatements are presented in the standard format required by the Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable to charities preparing th8ir ac£ounls in accordance with Flnancial Reporting Standard 102. The Statemenl of Financial Activits'es (SOFA) Shows the gros5 income from all sources. Going concern At Ihe time of approving the financbal statements, the Govemors have a reasonable expectation that th8 Charity has adequate resources lo continue in op8ralional existence for the foreseeable future. Thus the Govemors continue lo adopt the going concern basis of accounting in preparing the finanGial statements. R8S8ryes pollcy The charity's dedafed unrestricted reserves at 31 December 2023 were £569,324, 11 Is lfve charity's policy not lo maintain unrestricted revenue reserves greater than 100% of actual resoufces expended in any nomial year. The Boafd noles that of ils stated unrestricted reserves of £569,324, £25,657 consists of unrealised gains on inv8Sted capltal. an uncertain base which may not be relled upon in difficull economic fAIGtsmstanGes. Inv8slmentpolicy Wlh the excepllon of certain unrestrl¢ted r8serves. the vast bulk of investment assets are held for feslricled ITU5ts normally arlsing from Ihe proceeds of sale of redundanl school properties. Almost all inv851ment assets are held by Church of Ireland Trustees. They are actlvely managed by Sarasln & Partners LLP of London and regular performance reports are given to the Board. Major risks Rlsk managemont The governors keép undar review the major rtsks, to whlth the charity may become exposed. in particular those relating to the finances of the charity. and are satisfied that appropnate systems are kept in place lo mlllgale exposure lo such major risks. AS part of this slr8tegy, investmonl assets were reinvesled in Church of Ireland Trustee unils In 2015 which provides a pooled investment structure consisting for the greater part of equities and bonds, and designed to pro￿de a Combination of capital and Income growth. Pl•n• for futurn P•TlodJ The governors intend that the charity shall continue with Its existing policy of goveming and managing those assets with whlch it Is Impressed. The process of registration wilh the Charities Commission for Northem Ireland was completed on the 15th February 2021, with the Charity registered under the name "The Parochial Schools of th8 Dioceses of Down and Connot, and Dromore" Structuro, govemance and management The charity Is a body corporate framed under the Educatlonal Endowments {Ireland) Act 1885 which established, under Scheme 89 of thal Act. a 5truclure for the government and management of the parochial Schools of the dioceses of D¢)wn and Connor. and Dromore. Scheme 89 was given f5nal approval by the Lords Justices General and General Governors of Ireland wrth the consent of the Privy Council in Ireland at Oublin Castle. on the 6th N¢)vember. 1893. The charity is managed by a Goveming Body, establSshed undef Scheme 89, consisting of of two ex-officio Govemors-The Blshop of Connor and Thè Bishop of Down and Dromore. Clerical Represenlalive Govemors and Lay Represenlalive Gov8mors from each diocese. elected by diocesan synods. and up lo four co-opted Governors. Th8 Governing Body meets approximalely four tsmes per annum. Day lo day administration is managed through the Executive Secretary, Assistant Secretary and other governors as required. The members of Ihe Govemlng Body as al 31st December 2023 are as oulllned bek)w: THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWNAND CONNOR, AND DROMORE GOVERNORS, REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Ex-officio Govemorls) The Bishop of Down and Dromor?: The Right Reve￿nd D A M¢Clay' (cooptlons are holders of offices whlch directly supplement the working of the board. Taxation The charitable ststus of the charity is re¢ognised by His Majestrfs Revenue and Customs and this status allows certain tax exemptions on In￿Me and profrts from investments and surpluses on any activities carried on in furtherance of tt5 primary objectives. rf these profits and surpluses are applied solety for charitabEe purposes. The charity is not registered for VAT and accordingly all its expenditure is recorded indusive of any VAT incurred. Rosponsibility in respect of the Annual Financial Statements The Governors are responsible for Ihe preparation of the financtal statements for each year %thich give a true and fair view of the state of affairs of the Board as at the end of the financial year and of the surplus or deficit of the Board of that period. In preparing those financial statements, the Board is required to= Select suitable accounting poliries and then apply them consistently - Make judgements and estimates that are reasonable and prudent - Prepare the finanaal statements on the going con¢em basis unless It is inappropriate to do so. THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The Govemors, report was approved by the Board of Governors. THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE INDEPENDENT EXAMINER'S REPORT TO THE GOVERNORS OF THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE I report on the financial statements ol the Charity for the year ended 31 December 2023, which are set out on pages 8 to 15. Respective regponsibilities of Governws and examiner A5 the charity's Trustees you are responsible for the preparation of the accounts in accordance with the Charities Act (Northem Ireland) 2008. In accordance with the temis of our erlgagement, and to assist you to fulfil your duties under the relevant diarity laws and regulations, I have compiled the financial statements of The Down and Connor. and Dromore Oiocesan Board of Education for the year ended 31 December 2023, set out on pages 8 10 15, from the accounting records and infonnation and explanations you have given to me. It is my responsibility to: examine the financial statements under seciion 65 of the Charities Act