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Keep in touch with the Diocese of Westminster Westminster Roman Catholic Diocesan Trust Annual Report & Accounts 2015

www.

2017

Westminster Record

On our website Our website has the latest news about the work and mission of the Catholic Church in the diocese. It also includes full listings of all Catholic parishes and schools and hospital chaplaincies. You can visit our website at www.rcdow.org.uk On Facebook www.facebook.com/diocese.westminster On Twitter twitter.com/RCWestminster Westminster Record The Westminster Record is the newspaper for the Diocese of Westminster. Published every month, it includes news, features and photographs reflecting the mission and life of Catholic parishes, schools and people in the diocese. The Westminster Record costs just 20p, and can be bought in most parishes in the diocese. Westminster Year Book The 2017 Westminster Year Book contains full listings of Catholic parishes, priests, schools and societies. To be published in November 2016, it also includes the 2017 Liturgical Calendar. To order a copy please contact wyb@rcdow.org.uk

Produced by Communications Office of the Diocese of Westminster Printed by Gemini Print (Wigan) Ltd Designed by GADS Limited Diocese of Westminster 2016

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Westminster Roman Catholic Diocesan Trust

Annual Report & Accounts 2015


2015   Annual Report & Accounts

Diocese of Westminster

About the Diocese of Westminster The Diocese of Westminster is one of the smallest dioceses in England and Wales in geographical area, but the largest in terms of Catholic population and priests. The diocesan boundaries include the London boroughs north of the River Thames, between the River Lea to the east, the Borough of Hillingdon to the west, the County of Hertfordshire to the north and the Borough of Spelthorne in Surrey. Since the restoration of the Catholic Hierarchy in 1850, its bishop has often been a Cardinal. His Eminence Cardinal Vincent Nichols is the eleventh Archbishop of Westminster, having been installed as Archbishop on 20 May 2009. In an increasingly cosmopolitan city, the diocese includes a wide range of ethnic and cultural diversity amongst its Catholic population. The Diocese of Westminster is also a Metropolitan See, having as members of its Province the Dioceses of Brentwood, Northampton, Nottingham and East Anglia. The governance of the diocese is under the care of the Archbishop’s Council, the members of which are the Archbishop, the Auxiliary Bishops, the Vicars General, the Chairman of the Council of Priests, the Private Secretary and the Chief Operating Officer/Financial Secretary.

Diocese of Westminster Archbishop’s House Ambrosden Avenue London SW1P 1QJ Tel: 020 7798 9033 Email: archbishop@rcdow.org.uk

Charity Registration Number 233699


2015   Annual Report & Accounts

Diocese of Westminster

Contents

Annual Review Reference and administrative information

Reports 2

Introduction by Cardinal Vincent Nichols, Archbishop of Westminster 3

Report of the Directors of the Corporate Trustee

26

Independent auditor’s report

38

Purpose of the charity 4

Accounts

Parishes 6 Schools 10 Outreach/Caritas 14 Volunteers 18 Growing in Faith 20 Financials 22

Page 1

Consolidated statement of financial activities

39

Consolidated balance sheet

40

Charity balance sheet

41

Consolidated statement of cash flows

42

Principal accounting policies

43

Notes to the accounts

48

Diocesan Committees

70

Page 1


2015   Annual Report & Accounts

Diocese of Westminster

Reference and administrative information

Trustee

Audit and Risk Committee

The trustees are incorporated as Westminster Roman Catholic Diocese Trustee (WRCDT), a company limited by guarantee. This company does not conduct any trade or business for its own account and has no assets or liabilities. Its sole purpose is to act as trustee of a number of trusts and funds of which the Westminster Roman Catholic Diocesan Trust is the principal one.

Miss L Ferrar Rt Rev J Sherrington Mr K Ingram

Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL

The Directors of Westminster Roman Catholic Diocese Trustee (herein referred to as Trustees) are: His Eminence Cardinal V Nichols

Principal investment managers

Rt Rev J Sherrington Rt Rev N Hudson

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU

Rt Rev P McAleenan Rt Rev J Wilson Rt Rev Mgr T Egan Rt Rev Mgr M Hayes

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

Rt Rev Mgr J O’Boyle Lord D Brennan QC Miss L Ferrar Rt Hon R Kelly Mr C Kemball

Principal bankers

Mr A Ndoca

Mr P Camoletto CPA

HSBC Bank plc 69 Pall Mall London SW1Y 5EY

Finance Director

Charity solicitors

Mrs M Luiz MSc

Winckworth Sherwood LLP Minerva House 5 Montague Close London SE1 9BB

Financial Secretary

Principal address Archbishop’s House Ambrosden Avenue Westminster London SW1P 1QJ

Insurers The Catholic National Mutual Limited Westbourne The Grange St Peter Port Guernsey GY1 4LP

Charity registration number 233699

Page 2


Diocese of Westminster Annual Report & Accounts 2015

Cardinal’s Introduction

The wisdom of Pope Francis in calling the Year of Mercy has been clearly demonstrated in many ways, not least in the increased celebration of the Sacrament of Reconciliation over the past months. But it is a noble tradition of our Catholic Faith that the spiritual goes hand in hand with the practical: indeed, in Misericordiae Vultus, the Bull of Indiction of the Year of Mercy, the Holy Father gives his reason for calling the Jubilee Year in these words: ‘At times we are called to gaze even more attentively on mercy so that we may become a more effective sign of the Father’s action in our lives.’ There are many such signs of God’s action to be seen in the Diocese of Westminster. Volunteers give generously of their time in parishes, schools and in social action: four million hours a year in total, it is estimated. I thank all those who live out their faith in this way. Their witness, often quiet and unassuming, is an eloquent and practical testament to their belief. It brings the love of God to others in ways that are as tangible as they are valuable. Of course, those who give of their time as volunteers also receive richly, not least from those they serve. In using our gifts to help others, we play our part in building up strong, welcoming communities within the diocese. Such communities encourage their members to reach out to wider society with compassion, offering practical support and spiritual accompaniment to those in need. This Annual Report shows us some of the particular ways in which so many in the diocese seek to respond, in faith and with generosity, to the needs they see around them. I am most grateful to them all. I extend my gratitude, too, to those who have compiled this report and the Annual Accounts.

His Eminence Cardinal Vincent Nichols, Archbishop of Westminster

Page 3


2015   Annual Report & Accounts

Diocese of Westminster

Purpose of the Charity According to the original Trust Deed of November 1940 enrolling the Diocese of Westminster with the Charity Commission, the purpose of the Westminster Roman Catholic Diocesan Trust (WRCDT) is the advancement of the Catholic religion within the diocese.

Parishes are the focal point of each community. It is the place where Catholics come together each Sunday to worship, and where children are educated in the faith. It is also the base from which the community reaches out to others of all faiths and none in their local area, caring for those in need, working towards the common good and celebrating with neighbours.

The advancement of the Roman Catholic religion is most effectively achieved when Catholics, fully living their faith, extend the love of God to others around them, in their families, schools, local communities and in the care of the stranger. It is a practical faith that reaches out to care for neighbours in need, to build community cohesion, to bring about peace and reconciliation where they are needed, and to work for the common good of society, all the while respecting every person’s intrinsic human dignity.

Schools provide the environment where children learn and develop across a wide spectrum of disciplines, some more obvious, such as the academic disciplines, sports, music, and practical subjects. It is also where students learn to collaborate with others for the common good of all, becoming confident, mature citizens working for the good of society.

A diocese is a district or an area under the pastoral care of a bishop. The Diocese of Westminster is under the pastoral care of Cardinal Vincent Nichols and his auxiliary bishops. The diocese covers the boroughs of London north of the Thames and west of the Lea River, the Borough of Spellthorne in Surrey, and the County of Hertfordshire.

Outreach Caritas Westminster is the social outreach arm of the diocese. Through its own direct agencies, such as Caritas St Joseph and Bakhita House, as well as enabling initiatives in parishes and schools, Caritas works towards serving the needs of some of the most vulnerable members of society, sharing the love of God in practical ways, such as feeding the hungry, giving shelter to the homeless, helping rehabilitate victims of human trafficking, and enabling those with intellectual difficulties to grow.

Living within the diocese are approximately half-a-million people who identify themselves as Catholics. Pastoral care for these Catholics, as well as people of all faiths and none, living in these communities, is primarily exercised through the 214 parishes, 215 schools, and social outreach agencies coordinated by Caritas Westminster.

820 453,707 who identify as Catholic in the diocese

Page 4


Diocese of Westminster Annual Report & Accounts 2015

89,642 Children educated at Schools

160,000 149,000 Average number of Average number people who attend of Mass each Sunday

people who attend

Caritas

Mass each Sunday

and Parish Projects

4 million volunteering hours Page 5


2015   Annual Report & Accounts

Diocese of Westminster

Parishes The parish community gathers each Sunday to celebrate Mass which is the heart of all that the parish does. Each Sunday approximately 149,000 Catholics, both adults and children, attend services. The actual number of Catholics going to Mass is significantly higher as many families are only able to attend services once every two or three weeks.

149,000 Average number of people who attend Mass each Sunday Baptisms

6,069

Babies

2,414

Children aged from 1 to 7 years

617

Persons over the age of 7 years

First Holy Communion

160, First Holy Communions

A parish is the focal point of each community. It is the place where Catholics come together each Sunday to worship, and where children are educated in the faith. It is also the base from which the community reaches out to others of all faiths and none in their local area, caring for those in need, working towards the common good and celebrating with neighbours. In November 2015, a new initiative called Proclaim Westminster was launched to encourage parishes to think about the outreach work they are currently doing and what more they could do to reach out to those most in need in their communities. Parishes were encouraged to form teams in early 2016 to undertake this work.

Page 6

School-age children:

7,987

Adults:

493

Average n people wh Mass each

Through sacramental preparation, children are taught the values of love and service of others, and their characters are formed and a spirit of service and cooperation is instilled in them.


Diocese of Westminster Annual Report & Accounts 2015

Number of Catechists Baptism Reconciliation and First Holy Communion Confirmation Marriage preparation and support RCIA For children in non-Catholic schools Other catechetical activity

The total number of catechists within the diocese is

334 1,387 823 293 336 525 728

4,426

Funerals

3,533

5,548

Confirmations

,000 Number of people received into the Catholic Church

number of ho attend 399 h Sunday

Page 7


2015   Annual Report & Accounts

Diocese of Westminster

Promoting marriage preparation and marriage care contributes towards social stability, an environment where children can thrive, and a financial saving for the state.

Marriages

In the diocese

990

SmartLoving marriage enrichment weekend attended by Prepared by the parish but carried out overseas

26

2,065

couples in 2015

979

representing over

190

parishes, attended the Mass to celebrate significant anniversaries

600

Celebrating marriage at the annual Mass for Matrimony

4 30 0

1205

Students took part in the Explore programme where married couples spend time with a small group of students to explain the realities of married life and to answer any questions they may have

5060

According to a study commissioned by the Department for Education and conducted by the Tavistock Institute in 2014, for every £1 spent on marriage preparation courses and relationship programmes, £11.50 and £11.40 respectively is saved by the taxpayer.

Training

Individual advice to

42

priests

Additionally, the Agency for Evangelisation has hosted several talks and training sessions to help individual Catholics grow in their understanding of the faith.

46

A total of events were held and

1,829

and

32

parish catechetical coordinators

people participating in person, and many more viewing and/or listening to the talks online via the website. Page 8


Diocese of Westminster Annual Report & Accounts 2015

Safeguarding

Youth Ministry

Helping parishes create a safe environment for children and vulnerable adults

Youth Ministry: Supporting the development needs of young people Retreats for parish and school groups at SPEC:

Induction training for

22

143

new parish safeguarding reps

(23 and 120) groups Attendance at youth events: about

1,500

294

young people attending various large-group events

safeguarding reps registered for the new Online Safeguarding Training

Supporting school groups with retreats and induction days: about

With such a social, ethnic, religious, and national diversity within the diocese, developing social cohesion begins in the parish community and radiates outwards to embrace the wider local community. This is done in a variety of ways that include forming the character of children to live and thrive in a socially diverse society, as well as working with others in the community to deliver social outreach programmes.

600

attending

426

hours of general catechetical training to

Group events and gatherings at which

304

958

catechists representing

catechists representing

110

173

parishes received training

parishes

Page 9


2015   Annual Report & Accounts

Diocese of Westminster

Schools Catholic schools provide an education for both Catholic and non-Catholic students, the latter being from all faith backgrounds and none, where all children have the same opportunity regardless of socio-economic background or religious affiliation. Schools provide the environment where children learn and develop across a wide spectrum of disciplines, some more obvious, such as the academic disciplines, sports, music, and practical subjects. It is also where students learn to collaborate with others for the common good of all, becoming confident, mature citizens working for the good of society.

Ethnic/nationality breakdown of our pupils

89,642

Other Ethnic group

5.2%

Not Known

1.1%

Chinese

0.4% Black/ Black British

White British

33%

19.2% Asian/ Asian British

8.2%

White Irish

4.5%

Mixed Dual

9.9%

White Other

18.2%

Irish/Gypsy/Roma/ Heritage

0.3%

Page 10


Diocese of Westminster Annual Report & Accounts 2015

Number of pupils in our schools Total number of Applicants

Total number of applicants

of which

11,545

and

5,063

6,482

did not

secured a place

Total number of applicants of which

10,139

4,815

5,324

did not

secured a place

Primary schools To accommodate Catholic demand for places, the diocese would require:

Secondary schools: an additional 60 forms of entry Primary schools: an additional 52 forms of entry

and

Secondary schools

To accommodate every (i.e., both Catholic and non-Catholic) applicant, the diocese would require: Secondary schools: additional 160 forms of entry Primary schools: additional 170 forms of entry

To ensure every Catholic child who requires a place in a Catholic school can access one reasonably close to their home, the diocese would need: Secondary schools: an additional 10 schools (6 forms of entry each) Primary schools: an additional 26 schools (2 forms of entry each) or 17 schools (3 forms of entry each)

Page 11


2015   Annual Report & Accounts

Diocese of Westminster

Social Outreach in Schools

The Church fulfils her mission through the provision of schools which promote rigorous standards of excellence. The Catholic school promotes learning which exposes each pupil to a wide range of subjects. Children are encouraged to integrate the knowledge they acquire in these subjects so that they form a better understanding of the culture in which they live.

Catholic schools in the Diocese of Westminster continue to live out their faith through social outreach within their school, local community, and wider society. This can be as simple as visiting local care homes, to partnering with schools in developing countries to provide resources and expertise. Below are a few examples.

Catholic teaching provides the foundation of our understanding and respect for other religions, and for people of all faiths and none. Students are also encouraged to reach out in love and service to others in projects that promote the dignity and well-being of others in their local and global community. As students participate in this outreach they develop leadership skills that will help them grow into confident, mature citizens ready to serve society.

Mini Vinnies, a primary school initiative developed by the Society of St Vincent de Paul, has been adopted by many primary schools to encourage young people to work in society to support those in need. Pupils drive and develop social action initiatives within schools to turn concern into action. For example, St Benedict’s Junior School Mini Vinnies performed a musical concert for elderly residents at a local care home.

Every person is called to serve others and contribute to the good of society in some unique way. A Catholic education forms the character of each student and teaches the values that build society, so that it helps each young person to discern the way in which he or she is called to serve. Government statistics are a partial GCSE measure of Catholic education and, whilst important, are mean only part of the story.

Cardinal Pole School in Hackney and Convent of Jesus and Mary Language College in Brent support local primary schools, both faith and non-faith based, with the provision of curriculum and enrichment activities, particularly in the areas of maths, English and languages.

79.9%

79.9% GCSE mean

16

exceptional schools with * achieving

80%

or better

5 A -C

schools for concern with

achieving

80% 14

64%

5 A*-C

(of the latter one school improved by 22% over 2014 results, and two declined by more than 10%)

64% (of the latter one school improved by 22% over 2014

The classes aim to help parents feel more confident communicating in English so communication between the school and parents can improve. As Assistant Headteacher Simon Bent explains, ‘The education system is so full of specialised vocabulary that it can be very intimidating for parents to engage with it. In these classes parents have the opportunity to improve their English and then practice it through school-based situations.’

5 A*-C

achieving less than

achieving less than

At St Thomas More School in Wood Green educational provision was extended to parents wishing to learn English or improve their English skills. In October, ESOL (English for Speakers of Other Languages) classes were held three times a week with 30 parents attending each week.

14

or better schools for concern with

Parents of students benefit from the social action activities undertaken by Catholic schools in the diocese. Our Lady of Lourdes Catholic Primary School in Brent hosted a sixweek employability course to help get local parents back into work.

5 A -C

16

exceptional schools with *

St Anne’s Primary School in Tower Hamlets, itself located in a deprived area, supports Providence Row, a charity for the homeless.

‘These classes are a very good idea, they really helped me improve my spelling and punctuation and now I feel more confident when I speak.’ A parent Page 12


Diocese of Westminster Annual Report & Accounts 2015

99% A Level: A*-E mean

50.2% A Level: A*-B mean

Ofsted ratings

‘You and all your staff have high expectations for pupils’ behaviour. As a result, pupils are exceptionally polite and cooperative. They are almost always totally engrossed in their learning. You have focused on developing pupils’ leadership skills through social outreach projects. These pupils promote social justice by helping others, within the school and in local, national and international communities. One of their first jobs was to help set up a homeless shelter in partnership with the Catholic church. The ‘Door of Mercy’ entrance to the school, where both parents and pupils are invited to go through, secures an appreciation of forgiveness and generosity of spirit. Pupils are mature beyond their years. This spiritual and compassionate ethos is threaded throughout the work of the school.’

99%

From an Ofsted inspection report of one of the schools in the diocese

A Level:

Good

Outstanding Primary 32 A*-E mean

Primary

Secondary

(of which is one of all ages) Secondary

79

18

13

(Of which is one of all ages and one is a special school)

Special * Measures Primary 1

* Since the Ofsted inspection, the new leadership team at the school has implemented substantial changes and, in an subsequent inspection in March 2016, the school was rated Good in all areas.

Requiring Improvement Primary 15 Secondary 3

94.7%

From a sample of secondary schools, 94.7% of students that applied received university offers, including four schools where all applicants received offers. Although not all pupils apply to university due to other interests, whether academic or vocational, the high level of success among university applicants is an indication of their high aspiration and strong academic achievements. Page 13


2015   Annual Report & Accounts

Diocese of Westminster

Outreach/Caritas ‘The measure of the greatness of a society is found in the way it treats those most in need, those who have nothing apart from their poverty.’ Pope Francis, March 2013

Vision of Caritas: ‘Bringing about a society where everyone lives a life of dignity and worth.’ Caritas Westminster Strategic Three Year Plan

820

*

Our faith in Christ impels us to love the poor as the very flesh of Christ. This is why, as Pope Benedict XVI said, ‘the service of charity is a constituent element of the Church’s mission, an indispensable expression of her very being’ (Intimae Ecclesiae Natura). This is why Caritas Westminster was founded and is underpinned by the values of Catholic social teaching and innate human dignity. Caritas promotes parish-based social action through local hubs and development workers which support new and existing social initiatives to make a difference in local communities, serving those who are most in need, regardless of religious or ethnic affiliation. This support includes providing training and developing resources for parish priests and volunteers. Volunteer evenings which were first launched in 2015 offer people the chance to discover potential local volunteering opportunities. Caritas thus supports the work of parishes in reaching out to the most vulnerable and promotes cooperation with other groups of all faiths and none to deliver these services in the local community. Caritas is an umbrella organisation which leads and supports diocesan responses to the following priority areas of need, known as the seven pillars of Caritas Westminster: Food poverty and debt Social isolation of the most vulnerable Intellectual disability Homelessness, migrants and refugees Human trafficking and domestic violence Deaf community Youth inclusion Page 14

*Representing 90% of parishes


Diocese of Westminster Annual Report & Accounts 2015

Caritas Bakhita House

During the course of their stay at Bakhita House guests make steps towards growing in confidence and understanding their inherent worth. Each step, however small to the external eye, brings them closer to achieving independence and rebuilding their lives.

In June 2015 Caritas Bakhita House, a refuge for women escaping human trafficking, opened its doors to guests. Bakhita House offers women a range of services including emergency support, psychosexual therapy, legal and financial assistance, mentoring, and help with accessing accommodation.

Between June (when Bakhita House opened) and December 2015, 18 guests were admitted.

Guests of Bakhita House benefit from our values and principles of action: Love

expressed in compassionate support and long term commitment

Respect

for the gift and dignity of each individual

Age range of Bakhita House guests:

Guests No. 1-10: 2 18-24: 7 25-34: 2 35-44: 4 45-54: 1 55+: 2

Community a welcome which creates friendship and belonging Spirituality nurtured by that joy in creative activity which lifts the spirit. ‘With the help of our Bakhita staff and more than 20 volunteers, who dedicate their time and talents helping these women on their journey to rebuild their lives, we are truly making a difference fighting this crime against humanity.’ Karen Antiss, Bakhita House Manager

Social Action Projects Deaf Service Caritas Deaf Service supports groups for the hard of hearing, Deaf and Deafblind, allowing them to share their gifts and participate fully in the sacramental life of the Church and in their parish communities. Signing at Masses is regularly available at Westminster Cathedral, St Edmund of Canterbury, Whitton, Our Lady and St Frederick, Limehouse, and Our Lady of Fatima, White City, and a further 26 liturgies were sign interpreted throughout the year. A monthly Bible study group allows members to deepen their faith, and regular social events provide an opportunity for social interaction. The Deaf Service also joined pilgrimages to Lourdes with St Mary and St Michael, Commercial Road, and Padua, Venice and Verona with the Welwyn Garden City parishes, offering a fantastic opportunity to integrate with parishioners.

26 liturgies and celebrations in the diocese were sign interpreted

A further

4

regular Masses took place with an attendance of

120 Page 15

In 2015 two eight-week British Sign Language courses were taught to 27 students at Sacred Heart, Kilburn, and St Mary and St Joseph, Hemel Hempstead. Interest continues and plans are underway for more courses in 2016.

In 2015,

27

students were trained in beginners British Sign language


2015   Annual Report & Accounts

Diocese of Westminster

‘Works of love directed to one’s neighbour are the most perfect external manifestation of the interior grace of the Spirit….’

Love in Action The hub is also a platform for increasing use of the ‘Love in Action’ resource, which explains the spiritual underpinnings of Caritas’ work in social action. This resource will help parishes, schools and groups decide how best they could be extending their reach to those in poverty or social isolation.

Social Isolation

Pope Francis, Evangelii Gaudium 37

Caritas Westminster is committed to supporting lonely, isolated and vulnerable people through partnerships with key organisations and supporting parish initiatives. 150 parishes are engaged in activities to combat social isolation, through tea parties, luncheon clubs and visiting schemes. In 2015, there were eight new tea parties for older people welcoming 40 guests.

Caritas St Joseph’s Caritas St Joseph’s is the diocesan pastoral centre based in North West London. It celebrates the gifts of people with intellectual disabilities and enables them to participate fully in the life of their church and community. Its work is carried out in two main areas. Development workers and volunteers offer spiritual and social support to families in our parishes who embrace members with intellectual disabilities; and at the Activities Centre in Hendon over 190 students, from all faiths and none, participate in life-enhancing therapeutic, vocational or leisure courses. [Taken from 2013 Annual Report]

75

219

Regular or ongoing parish social action initiatives

31

parishes have visiting groups

54

parishes have social groups for the elderly

24

parishes have a Legion of Mary group

are supported by Caritas and in the last year over

20

one-off courses, workshops or sacremental support were given by Caritas

Adults attend Caritas St Joseph’s

Connect@ Centre Hounslow (Opened March 2015)

SEEDS at Stroud Green Caritas St Joseph’s continues to support parishes to run their own Saturday clubs for people with intellectual disabilities and their families and friends. In January 2015, Stroud Green parish launched Seeds of L’Arche with the help of Caritas St Joseph’s which offers sports, dance, music, arts and crafts.

In March 2015 the Connect@ Centre, run by Caritas St Joseph’s, was opened in Hounslow offering activities and lifelong learning for adults with intellectual disabilities of all faiths and none. Two courses are available at the centre: ‘Enriching My Life’ which explores the individual’s unique talents, preferences and spirituality through use of key cards, symbols, and expressive art and ‘Dance Steps’ which offers dance and movement to people of all abilities.

Initiatives such as Seeds and the Connect@ Centre offer local people the opportunity to find services that cater for their needs and aid social integration into the local community.

Launch of the Hertfordshire Hub Caritas Westminster launched its first social action hub for the Watford and St Albans Deaneries in February 2015. This hub is being established to support and encourage the 27 parishes within the two deaneries to tackle issues such as social isolation, youth exclusion and intellectual disability at the grassroots level.

44

parishes have an active SVP group

9

There are parishes with Caritas St Joseph’s social clubs

10

and a further parishes have other disability support groups. Page 16


Diocese of Westminster Annual Report & Accounts 2015

Youth Inclusion Caritas Westminster recognises the need to remove any barriers to the full inclusion of young people in our society and to support those who are at risk of social exclusion. Six parishes in the diocese are already directly involved in this work. In 2015, Caritas also funded one pilot project, Courtyard, in Wood Green to reach out to this group to understand and address their needs.

Wood Green Night Shelter St Paul’s parish in Wood Green hosts a winter night shelter in the parish hall in the coldest months of the year. Around 120 parishioners take turns on a rota each week to help provide a night’s respite from the cold for 12 homeless guests. These volunteers include members of the parish Confirmation group who assist with the preparation of the hall and bedding. The parishioners have shown their dedication to the care of their guests, by choosing to use some of the funds from Growing in Faith to build a shower facility as one of their projects.

13

Parishes run winter night shelters and a further

44

are supporting local night shelters

14

parishes offer drop-in centres for people struggling with housing and homelessness

‘Being involved with the shelter has brought us closer together as a parish. It has helped us to build an even stronger bond as a community.’

Night shelter volunteer

Bow Foodbank ‘Whatever the circumstances they may be facing, many people find it very difficult at first to come to a food bank. At Bow, we try to make people feel as welcome as possible, and to make the experience of using our food bank as far removed from a feeling of a handout as possible. The vast majority of our volunteers are local people, some of whom have used the food bank themselves, and before using the shop, visitors can sit and talk with our volunteers over a cup of tea or coffee.’

parishes directly run foodbanks

5 12

parishes run foodbanks in partnership with other organisations

Bow Foodbank

71

At the heart of what Bow Foodbank has to offer is the blend of the practical and pastoral elements of community and friendship, addressing the needs of the whole person. They know that the most important thing is that they have enough food for them and their family, but the centre has done its best to tackle the roots of the problems that bring them here. Regardless of whether clients are able to collect food that week, they are always welcome to come in for refreshments and to talk to volunteers. Page 17

support initiatives to alleviate food poverty


2015   Annual Report & Accounts

Diocese of Westminster

Volunteers

Thank you

to all our volunteers for your tireless service! Around

40,000

individual volunteers

Some parishioners can only contribute one hour each month while others contribute several hours each week. Whatever their level of commitment, our volunteers show that giving freely of their time and talents in the service of others is an integral part of parish life. Caption in here as aborepr eserfer eperspelit, tem a ventur molo qui repel mo consequas dolorem num Page 18


Diocese of Westminster Annual Report & Accounts 2015

given

have

a

staggering total of

over

4 million hours of their time in 2015

‘Now there are varieties of gifts, but the same Spirit; and there are varieties of services, but the same Lord; and there are varieties of activities, but it is the same God who activates all of them in everyone. To each is given the manifestation of the Spirit for the common good.’

1 Corinthians 12.4-7

Estimate based on a survey of 30% of parishes. Page 19


2015   Annual Report & Accounts

Diocese of Westminster

Growing in Faith supports Cardinal Vincent Nichols’ vision for the future of our diocese.

Amount given to religious orders for their formation and retired pr Then we need an infographic on S&RP –   £10 million out of £37 million dedicated for care of priests 6 new accommodation schemes planned 2 nearing design phase £X projected funding needed to get them done   An infographic on Caritas –   £X funding from GiF for Caritas Westminster

His vision is to have: • Parishes which are sound, prayerful and sustainable

• Priests who are strengthened in their commitment, well formed, sustained in ministry and old age and renewed by new vocations

• A vibrant programme of outreach to those in need in every parish with the active support of our diocese through Caritas Westminster From January 2012 to December 2014, parish by parish, priests and parishioners have joined this historic initiative. More than 19,000 parishioners have supported Growing in Faith with gifts and pledges, totalling £36m over five years. This has been a tremendous achievement and a wonderful expression of faith. It gives the diocese the confidence and means to grow its mission. Every pledge matters and the ongoing support of every parishioner is now essential in realising the vision we have for our future.

Key highlights

£35.8 Million £16,953,673 19,641 Caritas Westminster

16.5% Trinity Fund

0.05%

Sick & Retired Clergy (Diocesan)

28.4%

Raised in pledges Cash to date Gifts and pledges

Diocese Post Ordination Training

£

Priest Training(Diocesan)

13.8%

34% Priest Training (Religious Orders)

1.1% Sick & Retired Clergy (Religious Orders)

4.5%

20

14

50

64

2013

2014

2015

Examples of local projects

Parish Project

Page

128 Amount given to religious orders for their formation and retired priests’ care Then we need an infographic on S&RP –   £10 million out of £37 million dedicated for care of priests 6 new accommodation schemes planned 2 nearing design phase £X projected funding needed to get them done   An infographic on Caritas –   £X funding from GiF for Caritas Westminster

1.65%

How the monies will be shared

Number of parishes applying for grants

 t Albans – support for the S Catholic Worker Farm helping homeless mothers and children and refurbishing space used for counselling people coping with addictions

Amount given to religious orders for their formation and retired priests’ care Then we need an infographic on S&RP –   £10 million out of £37 million dedicated for care of priests 6 new accommodation schemes planned 2 nearing design phase £X projected funding needed to get them done   An infographic on Caritas –   £X funding from GiF for Caritas Westminster

Amount given to religious orders for their formation and retired priests’ care Then we need an infographic on S&RP –   £10 million out of £37 million dedicated for care of priests 6 new accommodation schemes planned 2 nearing design phase £X projected funding needed to get them done   An infographic on Caritas –   £X funding from GiF for Caritas Westminster

Hemel Hempstead – offering social events for the elderly and respite afternoons

Amount given to religious orders for their formation and retired priests’ care Then we need an infographic on S&RP –   £10 million out of £37 million dedicated for care of priests 6 new accommodation schemes planned 2 nearing design phase £X projected funding needed to get them done   An infographic on Caritas –   £X funding from GiF for Caritas Westminster

 eading – refurbishment of Y the parish centre and repairs to the parish roof  inchley East – recruited F a catechetical co-ordinator with responsibility for development of youth work


Diocese of Westminster Annual Report & Accounts 2015

Priests’ training

Amount given to retired priests’ care

£10

Thanks to the generosity of parishioners in the Growing in Faith campaign, the diocese was able to dedicate approximately

Million

£900,000

out of

£36 million

Amount given to religious orders for their formation and retired priests’ care Then we need an infographic on S&RP –   £10 million out of £37 million dedicated for care of priests 6 new accommodation schemes planned 2 nearing design phase £X projected funding needed to get them done   An infographic on Caritas –   £X funding from GiF for Caritas Westminster

dedicated for care of priests

to refurbish the chapel in Allen Hall Seminary, and to repair damage in the library where seminarians study. The work was completed in 2015.

5

new accommodation schemes planned

Also, it funded

29

men in formation for the priesthood for the diocese

Cost of the Campaign The cost of fundraising

2

nearing design phases

represents

£3.79m

10.2% of the total amount that has been pledged

* These costs have been met by the curia from existing reserves.

Transparency

• The first Volunteer Day was attended by almost 100 people and participants left ready to get involved with local social action projects.

and

• Over a tonne of surplus food was moved across the diocese to needier foodbanks in East London.

accountability A campaign committee made up of laity and clergy provides oversight to ensure that these ring-fenced monies are managed and allocated in accordance with the objectives of the campaign. Supporters receive regular communications from the Growing in Faith office through newsletters and articles Page on the website, and regular updates from their parishes. 21

• Five East London schools providing breakfast clubs have achieved sustainability, offering healthy breakfasts at little or no cost. • Bakhita House accommodates 20 women in its first seven months since opening. • Working with the Jewish Volunteer Network, Caritas will launch a website in June 2016 which helps volunteers find opportunities aimed at the Catholic community.


2015   Annual Report & Accounts

Diocese of Westminster

Consolidated income and expenditure Income

2015

Curia* £22.9M

2014

Curia* £22.5M Parishes £34.4M

Parishes £37.8M

* Includes assessment transferred from parishes to curia (£5.23M in 2015 and £5.29M in 2014)

2015

Expenditure

Curia £13.4M

2014

Curia £12.4M

Parishes* £31.9M

Parishes* £32.0M

* Includes assessment transferred from parishes to curia (£5.23M in 2015 and £5.29M in 2014)

Net income before gains and investments 2015

2014

£15.5M

£12.3M Page 22


Diocese of Westminster Annual Report & Accounts 2015

Parish income and expenditure Income Income by type (£’000)

2015

2014

% 2015

25,749

24,550

68.1

Parish activities

6,782

6,181

18.0

Investment income

2,002

1,979

5.3

Disposal of assets

1,332

27

3.5

Rents from functional property

1,296

1,016

3.4

649

649

1.7

37,810

34,402

100

2015

2014

% 2015

Collections, donations and legacies

2015

Trading activities Total

Expenditure Expediture by type (£’000)

2015

Non-clergy salaries and housekeeping

6,313

6,076

19.8

Diocesan assessment

5,228

5,294

16.4

Property repairs and renewals

3,814

4,048

12.0

Other

3,116

3,032

9.8

Council tax and utilities

2,892

2,884

9.1

Property depreciation

2,760

2,794

8.7

Liturgical, candles and repository

2,657

2,554

8.3

Clergy stipends

2,179

2,059

6.8

Parish activities

1,245

1,235

3.9

Donations and grants

1,143

1,557

3.6

503

492

1.6

31,850

32,025

100

Costs of generating trading activities Total

Page 23


2015   Annual Report & Accounts

Curia income and expenditure Income

2015

2

92 12 7

63,987 34.55

Diocese of Westminster

Income by type (£’000)

2015

2014

% 2015

Donations and legacies

9,414

7,982

41.0

Diocesan assessment

5,228

5,294

22.8

Disposal of assets

4,832

5,813

21.1

Income from charitable resources

1,963

1,466

8.6

Rents from functional property

736

812

3.2

Investment income

511

675

2.2

Assessment for non-consolidated parishes

119

163

0.5

Trading activities

135

301

0.6

22,938

22,506

100

Expenditure by type (£’000)

2015

2014

% 2015

Pastoral and related work

3,559

3,794

26.6

Administration

3,258

1,980

24.3

Impairment of tangible fixed assets

1,662

0

12.4

Clergy and consecrated life

1,241

1,533

9.3

Education and formation

1,227

1,047

9.2

Auxiliaries and vicar general

774

891

5.8

Other

694

2,226

5.2

National bodies

355

350

2.6

Archbishop’s office and house

344

324

2.5

Communication and safeguarding

282

269

2.1

13,396

12,414

100

Total

Expenditure

2015

Total

82,816

Page 24

1 4 9

9 12 8 7 21 43.792.7 22,81 91

54 123,987


12 33 12 22 88.9 33

2.7 22,816 33 21 43.7 23,987 92.7 33 43.76 7692.734,54 92.5 54.8 54.8 22,81692.7 123,9 92.7 33 37 76 123,987 92.7 76

45 9 Westminster Roman Catholic Diocesan Trust

Annual Accounts 2015

12 12 476 12 379 12 33 33 62

22,816 22,816 21 21 29,8 33 33 43.76 43.76 54.8 54.8 43.7 92.7 92.7 92.7 54.8 54.8 22,816 22,816 22,816 21 5 92.7 92.7 33 33 33 43.76 92.7 23,987 123,987 92.7 92.7 54.8 82,816 123,98 76 76 92.7 192.7 54.8 76 54.8 22,816 7 16 92.7 33 33 92.7123,987 33

4.8 22,816

33

Page 25

58


2015   Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

Introduction

• The provision of religious and pastoral services through parishes

The Directors of the Corporate Trustee (i.e., the Trustees) present their statutory report together with the consolidated accounts of Westminster Roman Catholic Diocesan Trust (the Charity) for the year ended 31 December 2015.

The diocese has 214 parishes, of which six are run by separate religious congregations and are not consolidated. Religion is advanced through providing places of worship and facilitating religious practice, particularly through the Mass. These include conducting religious ceremonies (such as baptisms, weddings and funerals), maintaining religious burial grounds, celebrating public Masses, and providing and maintaining devotional artefacts, stained glass windows and other religious works of art in places of worship. There is also a benefit to the general public as these churches are open to people of all faiths and none, for personal spiritual contemplation. Parishes themselves are communities which contribute to the moral and spiritual wellbeing of those who attend, and from these centres educational, social and pastoral work is carried out as a practical expression of faith. To give some indication of this, the estimated average weekly Mass attendance in the diocese was circa 150,000, the number of parish churches and others open to the public was 214, with over 9,000 baptisms/receptions into the Church, around 8,500 first holy communions, 990 marriages and 3,500 funerals during the year.

The accounts have been prepared in accordance with the accounting policies on pages 43 to 47 of the attached accounts and comply with the Charity’s Trust Deed, applicable laws, applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), effective from accounting periods commencing on or after 1 January 2015.

Objectives and review of the year Objectives The Declaration of Trust included in the Trust Deed dated 1 November 1940 specifies that the property and other assets owned by the Charity should be used ‘both as to capital and to income in or towards advancing the Catholic religion in the diocese by such means as the Archbishop may think fit and proper and for the service and support whether in the diocese or outside the diocese by such means as aforesaid of charitable works and objects promoted by the Church’.

In our parishes there exists a very wide diversity of culture and nationalities (in one parish there are approximately 100 nationalities). Every parish community strives towards racial and cultural harmonisation and integration. Through this, we believe the Church is leading the way in promoting cohesion in our cosmopolitan society. Besides the work that is being accomplished in parishes, the central services of the diocese also offers support.

Review of the year and plans for the future The Catholic Church has a large body of doctrine, its social teaching, which presents a rounded understanding of the human person and of the importance of solidarity. One focus of the doctrine is the Common Good, which refers to what belongs to everyone by virtue of their common humanity. The simple definition of the Common Good is ‘the sum total of social conditions which allows people, either as groups or as individuals, to reach their fulfilment more fully and more easily’.

For example, the provision of Youth Ministry increases year on year, helping to nurture the character of tomorrow’s adults. This service aims to train youth workers in parishes and schools for young people’s formation. In 2015 the service provided a 30% increase in retreats offered to schools and parishes in a new retreat centre in Pinner. Over 8,500 students in 143 groups attended, and reflected on the positive ways in which they can lead their lives. Over 1,000 young people from the diocese attended the Flame event in March 2015 at Wembley Arena.

The principal ways in which the objectives of the Charity are fulfilled are by the provision of religious and pastoral services through parishes and the provision of education through the diocesan Catholic schools. Additionally, within its overall objective, one of the main aims of the Charity includes the fulfilment of this social teaching primarily through Caritas Westminster.

The Agency for Evangelisation supports parish priests and parish catechists in their work. It supplied 426 hours of general catechetical training to 958 catechists, representing 173 parishes. Additionally it provided advice and consultation to over 70 parishes on their catechetical programmes.

When setting the aims of the Charity and planning its work for the year, the Trustees give careful consideration to the Charity Commission’s guidance on public benefit.

The office for Marriage and Family Life is supporting married couples and those that are preparing for Page 26


Diocese of Westminster Annual Report & Accounts 2015

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

marriage, whilst also educating young people about the vocation to marriage. Some of the activities in 2015 are as follows: (1) the SmartLoving Engage marriage preparation programme used by 21 parishes; (2) the Explore programme, when married couples spend time with a small group of students to explain the realities of married life and to answer any questions they may have, in which 979 students took part; and (3) the Retrouvaille programme, which has helped save the marriages of nearly 200 couples since 2009.

with a special emphasis on reaching out to those who may not have considered themselves eligible for divine mercy. As part of this the cathedral and 15 churches across the diocese have Holy Doors, which have been the focus for pilgrimage by parishes, schools and individuals, and for renewed sacramental celebration and catechesis by the Bishops. In 2016 a diocesan pilgrimage to Walsingham took place in honour of Mary, the Mother of Mercy. Over 4,000 pilgrims attended, reflecting the great diversity of age, social and ethnic background in Westminster. Throughout the Year of Mercy, Jubilee Masses will be celebrated in the cathedral for different categories of people, e.g., on 10 September 2016 for those working and volunteering in social care and others areas in which mercy is put into practical action. Most of the results of these initiatives will materialise in 2016.

In 2015 the diocese also started some key programmes to help encourage and nurture parishioners’ faith so that they can better serve the Common Good: Proclaim ’15 and the Year of Mercy. Proclaim ’15 was launched to support, inspire and encourage new expressions of parish evangelisation. This project of the Bishops’ Conference of England and Wales was designed to affirm the good work already being done by the Catholic community, and to provide resources and events to profile and develop new expressions of Catholic joy and missionary outreach.

Most of the Charity’s objectives for the parishes are enabled by purpose-built buildings. The churches of the Diocese of Westminster offer sacred space for parishioners to gather for Mass and are open to any member of society to enter for a quiet and peaceful space to reflect. For this reason the Trustees direct resources and time to ensuring that the Charity’s buildings are fit for their purpose.

It is a pioneering initiative, inspired by Pope Francis’ Evangelii Gaudium, for all clergy, religious and lay people. Why? Because we all share the one mission: to proclaim the joy of the Gospel. Practical ideas offered for planning and carrying out fruitful parish evangelisation focusing on prayer, Caritas, marriage and family life, faith formation and new pastoral priorities help parishioners to be better missionary disciples.

During 2015 there were 62 active parish projects ranging from feasibility stage through construction to the postcontract stage. These had a total value of £8.3 million. The building works ranged from refurbishments in parish buildings, to roof repairs or replacements, repairs to fire detections and alarm systems, plus major re-decorations. Some of the major schemes completed in 2015 were as follows:

One important milestone was the Proclaim conference, held in November 2015, with representatives from across the diocese coming together to establish how best to continue and develop this important initiative. All parishes were represented, with attendance comprising both lay leaders and parish priests.

Our Lady of Lourdes in Acton Rebuilding of the parish hall St John the Evangelist in Brentford Church refurbishment and decoration St Gabriel in Harrow South Improvement to the parish hall St Sebastian and St Pancras in Kingsbury Green New parish hall St Joseph in Wembley New meeting rooms

As a result parishes have been examining 429 potential projects to develop evangelisation. The projects can be broken down into the following categories: 107 on faith formation, 78 on social justice, 37 on marriage and family life, 84 on prayer and 123 on other pastoral initiatives. In 2016 parishes will see if and how these projects can be properly implemented and their results will start to appear. In 2015 the Holy Father, Pope Francis, inaugurated the Year of Mercy to run between 8 December 2015 and 20 November 2016. The diocese, primarily through its parishes, has responded enthusiastically to the Jubilee Year. The Holy Father’s objective is to extend to all the invitation to experience God’s mercy in their own lives so that we, in turn, may share that with others through our own works of mercy. This has been achieved in many different ways: through pilgrimages, the celebration of the sacrament of penance and practical works of mercy,

• The provision of education through the diocesan Catholic schools Within the diocese there are 215 schools, 165 of which are primary and 50 secondary. Of the 215 schools, 15 are independent and some of those are in the trusteeship of religious congregations. Around 90,000 pupils attend our schools. As at 31 December 2015, there were five academy trusts, comprising both primary and secondary schools, including 17 academies. Page 27


2015   Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

projects (£24 million capital spend in total) involve major expansions to accommodate extra forms of entry in the following schools:

Throughout the diocese, the schools aim to provide a first-class education for boys and girls from the ages of 4 to 18. The Charity contributes towards providing a structured educational environment that develops the pupils’ capabilities, competences and skills, and promotes the academic, moral and physical development of the pupils through curriculum, pastoral care, sporting and other activities. Thus students can develop and fulfil their potential, building self-confidence and learning to contribute to the wider community. Pupils are thereby formed for the opportunities, responsibilities and experiences of their future years. Additionally, the Charity provides the land and buildings through which these schools and academies operate.

St Joseph in Hendon Expansion to a 3-form entry St Philip Howard in Hertfordshire Additional classrooms St Joseph in Hanwell Expansion to a 3-form entry St John XXIII in White City Expansion to a 2-form entry St Patrick’s in Camden Various refurbishment and extension works

The examination results in the diocesan schools for 2015 were as follows: at GCSE the A*-C mean was 79.9%, with 16 exceptional schools achieving 80% 5 A*-C or better, and 14 schools with 5 A*-C achieving less than 64%, the national average. For A Level the A*-B mean was 50.2%, whilst A*-E mean was 99%.

St Anne in Palmers Green New sixth form centre In 2015 there was also a major fire at St Joseph’s School, Willesden, which partially destroyed the building. The school is now being rebuilt and works are covered by insurance.

From a sample of our secondary schools, 94.7% of the students who applied received university offers, including four schools where all applicants received offers. Although not all pupils apply to university due to other interests, whether academic or vocational, the high level of success among university applicants is an indication of their high aspiration and strong academic achievements.

Additionally, building expansion has started at St Richard Reynolds School in Twickenham and the building works will continue until 2017. The initial refurbishment to two existing primary school buildings has been carried out and fully developed/managed by the diocese with a small contribution from the Department for Education. The construction of a new building to accommodate the new secondary school will be jointly funded by the Diocese of Westminster (60%) and the Archdiocese of Southwark (40%).

The Ofsted ratings of our schools showed that 32 primary schools and 13 secondary schools were outstanding, while 18 schools, 15 primary and 3 secondary, required improvements. At the time of writing this report in 2016, the number has reduced to 10 schools requiring improvement. In 2015 one secondary school was in special measures and at the time of writing this has now received a good rating from Ofsted.

• The implementation of Catholic social teaching through Caritas

During 2015 the diocesan Education Service worked diligently to fill vacancies in the schools. 19 new head teachers and 17 deputy head teachers were appointed; there are still several vacancies for foundation governors, although 257 were appointed in 2015.

Within its overall objectives, one of the Charity’s fundamental aims is the application of Catholic social teaching in pursuit of the Common Good. In recent years the Trustees have set up a new department, Caritas Westminster, to help achieve this goal.

The diocesan school buildings must ensure that pupils have a comfortable and safe place to learn and develop.

The role of Caritas is to support our Catholic parishes and schools in the charitable response to needs which they encounter in their local communities.

Through the provision of diocesan school properties, the Charity aims to contribute towards the provision of a firstclass education in a Catholic Christian environment.

While there is so much work to be done in this area, the Trustees have identified seven key areas: 1) S upporting people who find themselves in food poverty and debt

With the help of the government, local authorities and parents, the diocese continues to improve and expand its schools buildings.

Some of the work done by the Charity in this area includes: five parishes directly manage foodbanks, 83 parishes support hunger initiatives through food collection, advice service and volunteering.

During 2015 the Trustees managed 209 school projects, with 158 still active at the end of the financial year and 51 at the final stage. Among them, seven large Page 28


Diocese of Westminster Annual Report & Accounts 2015

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

7) Supporting people who are homeless

Additionally, the diocese joint-hosted a conference with the Jesuit Refugee Service on food poverty, the better to understand and communicate the issue. Four parishes host advice services for people in debt and with other social needs.

This is the most widely-assisted initiative by diocesan parishes. 87 support homelessness initiatives, including winter night shelter programmes. Caritas also published advice and guidance for parishes on how to meet the needs of homeless callers and organised a seminar attended by 100 people on homelessness and housing.

2) Supporting lonely, isolated and vulnerable older people Over 150 parishes are engaged in activities to combat social isolation among vulnerable people, through tea parties, luncheon clubs and visiting schemes. In 2015 there were eight new tea parties for older people, with 40 guests and 130 volunteers.

During 2015 Caritas reorganised its grant making arm (the St John Southworth Fund). It made 16 grants to the value of £70,000 in line with the key priority areas, of which seven were crisis grants to individuals and nine were project grants to parishes and local organisations working with parishes.

3) Supporting the Catholic Deaf community The needs of this group were addressed by eight parishes directly providing services to Deaf Catholics, offering a monthly support group for older people, minicom or internet contact for 100 people, five social outings per year, and counselling services.

Caritas organises its support to parishes through hub networks. In 2015 the diocese established four networks, with one development worker in each hub. Their role is to work through those communities to share their knowledge, resources and experience, to encourage and facilitate volunteering in order to expand new social justice initiatives and to build on existing ones. The Charity anticipates expanding the number of hubs to six by the end of 2016.

4) Supporting people with intellectual disabilities and their families This support is provided centrally and in parishes. Each week Caritas St Joseph’s Pastoral Centre helps more than 200 people with intellectual disabilities to develop their potential. It provides six social evenings per year and enables pilgrimage to Lourdes for 20 people with intellectual difficulties and their families. Meanwhile 35 parishes are directly providing services for people with intellectual disabilities. In 2015 Caritas relaunched its training programme for parishes working with people who have intellectual disabilities. Seven training days were delivered to 50 participants.

The Charity will continue to build on the work of the past year towards its focus on the Common Good. To help finance the initiatives described and future needs, the Trustees led a fundraising programme called Growing in Faith. This ran from January 2012 to December 2014 and at its conclusion almost all parishes had participated. Besides raising funds, the campaign aimed to communicate to every parishioner the priorities for the future which are: a) vibrant and sustainable parishes; b) a sustainable priesthood; and c) helping the poor and marginalised. The campaign has received over £35.8 million in gifts and pledges from over 19,000 households, of which circa £17 million has already been received. The cost of this campaign was £3.8 million, which was met by the curia from existing reserves.

5) Supporting young people at risk of social exclusion Six parishes are directly involved in this work. In 2015 Caritas also funded one pilot project, Courtyard, in Wood Green, to reach out to this group to understand and address their needs.

The office of Fundraising and Stewardship launched the Cardinal’s Appeal in 2015, which in its inaugural year raised more than £124,000 for three fundamental mission areas: a) youth and evangelisation; b) marriage and family life; and c) civil society. As a result, three first-round grants were awarded across these areas, totalling £32,000. The Diocese of Westminster also launched a legacy awareness programme, with special leaflets for parish and diocesan use, posters, legal language samples, and guide booklets for preparing one’s estate. These resources were distributed to all 214 parishes and adverts appear now every other month in the Westminster Record. The diocese also launched a new text giving scheme, whereby visitors, parishioners

6) Supporting victims of human trafficking In June 2015 Bakhita House, the diocese’s accommodation for trafficked women opened and supported 18 guests in the period to December 2015. 21 parishes were directly involved in this work, providing volunteers and services. Caritas, through Just Enough UK, delivered anti-human trafficking awareness training to 20 schools with 1,000 children. At an international conference on trafficking, the Director of Caritas gave a presentation in which the Bakhita House project was highlighted as an example of how the Church can coordinate with local police to fight human trafficking, while helping its victims. Page 29


2015   Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

The figures in respect to 2014 have been restated in order to comply with and be consistent with the updated accounting and reporting requirements that took effect for accounting periods commencing on or after 1 January 2015. Further details of the restatements are provided in the principal accounting policies and notes to the accounts.

and friends can donate a fixed £5 via their mobile phone using a text code. This is a longterm fundraising mechanism which will grow. The three mandated diocesan collections (for training of seminarians; social action; and sick and retired priests) were also retooled and sharpened in messaging, appeal and distribution. The Caritas Lenten Alms collection for social programmes raised more than £20,000 in 2015. For the training of priests in the affiliated charity Westminster Ecclesiastical Education Fund (WEEF), more than £170,000 was raised. In addition to these new and improved fundraising programmes, in 2015 the diocese undertook a special initiative to combat human trafficking and modernday slavery, the Bakhita Initiative, and raised more than £600,000 in special gifts from individuals, religious orders, trusts and donor organisations. All these efforts were in addition to the primary responsibility of collecting monies pledged to Growing in Faith.

Please note that these numbers include income and expenditure related to the fundraising programme Growing in Faith. This includes income received by the curia of £5.9 million in 2015 (2014 - £6.2 million). The programme incurred £0.2 million expenditure in 2015, as it finished in January 2015 (2014 - £1.5 million shown within the curia figures). Parish income for the year stands at £37.8 million (2014 - £34.4 million), which represents a 10% increase. This is mainly attributable to an increase in monies received from collections, donations and legacies of £1.2 million, sale of parish property of £1.3 million and income from parochial and similar activities of £0.6 million.

Financial Review Financial results

Parish expenditure has remained constant, resulting in a surplus before assessment and other transfers of £11.2 million (2014 - £7.7 million).

The table set out below summarises the financial activities of the diocese.

2015 £m

Restated 2014 £m

37.8

34.4

Other transfers relate to eliminated transactions between the curia and parishes, mostly Growing in Faith grants.

Parishes Income

(26.6)

(26.7)

Surplus before assessment and other transfers

11.2

7.7

Diocesan assessment

(5.2)

(5.3)

Other transfers

1.2

(1.4)

Surplus after assessment and other transfers

7.2

1.0

Investment gains

5.0

2.2

Added to reserves

12.2

3.2

Expenditure

Parish investment gains stood at £5 million for the year (2014 - £2.2 million). This is largely due to the increase in value of investment properties held by the parishes. Total curial income after assessment and other transfers for 2015 is £21.7 million (2014 - £23.9 million) which represents a decrease in income of £2.2 million (9.2%) compared to 2014. This is due to a decrease in other income relating to the net gains on disposal of tangible assets (£4.8 million in 2015 v £5.8 million in 2014) as well as other transfers (negative variance of £2.6 million year on year). This is partially offset by an increase in donations and legacies of £1.2 million.

Curial 5.2

5.3

Other transfers

(1.2)

1.4

Income

17.7

17.2

Total income after assessment and other transfers

21.7

23.9

(13.4)

(12.6)

Surplus

8.3

11.3

Investment and actuarial gains

1.6

2.0

Added to reserves

9.9

13.3

Diocesan assessment

Expenditure

Curia expenditure has increased to £13.4 million for 2015 (2014 restated - £12.6 million). Investment and actuarial gains have decreased by £0.4 million to £1.6 million (2014 restated - £2.0 million). This is due to a lower gain on listed investments compared to the previous period, despite the revaluation gains in investment curial property of £1.1 million. Full details of the income and expenditure are shown in the consolidated statement of financial activities and in the notes to the accounts. Page 30


Diocese of Westminster Annual Report & Accounts 2015

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

Reserves policy

purposes of the Charity. This reflects an increase of £3.0 million in general funds compared to 2014 and is equivalent to approximately 18 months (2014 - 14 months) of future budgeted unrestricted expenditure.

The Trustees aim to maintain the Charity’s general fund at an equivalent of 12 months’ expenditure on unrestricted funds, although they also acknowledge the need for some flexibility to be built into this figure to accommodate changes in future investment values and exceptional expenditure.

The Trustees note that the level of general funds at 31 December 2015 is in excess of that stated in the Charity’s reserves policy. As stated previously, the level of reserves is expected to decrease over the next two years due to commitments to large capital programmes i.e., Waxwell Farm and school building projects.

Even with a proactive approach to risk, the Trustees of the Charity cannot foresee all financial risks nor a prolonged period of economic stagnation. When establishing their guideline on the free reserves, the Trustees have considered the effects of an eventual financial shock.

The Charity’s assets At the end of 2015, annual capital expenditure for the Charity stood at £7.7m. Of this £7.7m, £7.1m relates to ongoing capital projects carried out in parishes, ranging from major projects such as renovating church halls to smaller projects such as refurbishing meeting rooms. The remaining capital expenditure for the year is due to two curial ongoing projects: Bakhita House, a house for victims of human trafficking, and Waxwell Farm, Pinner, a retreat centre for Youth Ministry.

The 12 months’ target is not fixed, but one to be considered when making decisions on major investments or capital projects. At the same time, the financial vulnerability of the Charity should also be assessed; this can act as a warning signal to make a concerted effort to increase the reserves. Trustees predict that in two years’ time the Charity’s free reserves will be closer to 9 months’ worth of expenditure, subject to the various asset valuations. This is because, in recent years, the Charity has undertaken some large capital programmes which have been and will be funded from diocesan main funds. These are as follows: a) the purchase of Bakhita House to host and care for trafficked women; b) the building development at Waxwell Farm Youth Retreat Centre in Pinner; and c) the new primary and secondary school in Twickenham, St Richard Reynolds. The Trustees are monitoring the reserves on a periodic basis in order to take immediate action should these fall below the desired and anticipated levels.

In 2015, the Charity invested in a new class of asset, programme-related investments, comprising two voluntary aided schools, St Richard Reynolds and St Anne’s. Further details of acquisitions and disposals of fixed assets during the year are recorded in the notes to the accounts.

Structure, Governance and Management Constitution Westminster Roman Catholic Diocesan Trust is a charitable trust established by a Trust Deed dated 1 November 1940 and is registered under the Charities Act 2011, Charity Registration No. 233699.

Financial position Parochial reserves at 31 December 2015 total £143.9 million (2014 - £131.7 million) which relate solely to the assets and activities of individual parishes. They are not available for the general purposes of the Charity nor are individual parishes able to transfer their funds to other parishes within the diocese.

Scope of the consolidated accounts The consolidated accounts include the assets, liabilities and transactions of the following: Curial funds Curial funds are used to support the Archbishop and Bishops in providing diocesan-wide services and pastoral care and to meet the cost of central administration. The curial funds are administered by staff within the curial (or central) offices in Westminster Cathedral complex.

Curial reserves at 31 December 2015 amount to £72.3 million (2014 - £62.4 million). Of this, £34.2 million (2014 - £28.6 million) represents the balance on restricted funds which is not available for general purposes. Unrestricted funds amounted to £38.1 million (2014 £33.9 million). Of this, £17.8 million (2014 - £19.3 million) is a tangible fixed assets fund, £2.9 million (2014 - £nil) is a programme related investments fund and a further £1.8 million (2014 - £1.8 million) has been set aside for specific purposes, leaving general funds of £15.6 million (2014 - £12.6 million) after the pension reserve deficit of £1.2 million (2014 - £1.7 million) for the general

Parochial funds Parochial funds are administered, with guidance from the central Finance office, by the parish priests and are used to carry out the work of the Church within local areas and to help fund the curia. Westminster Cathedral Limited A wholly-owned subsidiary trading company carrying out general Page 31


2015   Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

activities which relate to Westminster Cathedral, and whose object is to generate profit for the benefit of the cathedral.

Appointed/Resigned His Eminence Cardinal V Nichols Rt Rev J Sherrington (1,2,4,5,6)

Aedificabo Limited A wholly-owned subsidiary trading company carrying out project management to assist the building programme of the diocese in its schools, academies and parishes.

Rt Rev N Hudson (1)

Other registered charities Other registered charities, which are integral to the Charity and which therefore have been included in these accounts, are:

Rt Rev Mgr M Hayes (1)

• The Moorfields Charity (Charity Registration No. 247198): a charity providing assistance to the Catholic parishes of Moorfields and Bunhill Row and to Westminster Cathedral.

Miss L Ferrar (2,4)

Mr D Moseley (4)

Resigned 17 July 2015

• Westminster Cathedral Trust (Charity Registration No. 270637): a charity with the principal objectives of supporting Westminster Cathedral and preserving its fabric and music.

Mr A Ndoca (3,7)

Appointed 17 July 2015

Rt Rev P McAleenan (7)

Appointed 3 February 2016

Rt Rev J Wilson (6)

Appointed 3 February 2016

Rt Rev Mgr T Egan (1,3) Rt Rev Mgr J O’Boyle Lord D Brennan QC Rt Hon R Kelly Mr C Kemball

Committee member of: 1) Finance Board 2) Audit and Risk Committee 3) Investment Committee 4) Human Resources Subcommittee 5) Property Subcommittee 6) Schools Commission 7) Caritas Westminster Advisory Board

•D  iocese of Westminster Sick and Retired Priests Fund (Charity Registration No. 278136): a charity which provides assistance to sick, elderly and retired clergy. School properties The Charity is the legal owner of over 200 properties comprising voluntary aided schools and academies within the diocese. The schools, many of which are separate exempt or excepted charities, are funded through a combination of government grants and voluntary contributions.

The Trustees met four times during the year. On agreeing to become a Trustee, individuals are thoroughly briefed by their Co-trustees on the history of the Charity, the day-to-day management, the responsibilities of the Trustees, the current objectives and future plans. The Trustees are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up to date on any changes in legislation.

The nature of the occupation of these properties by the exempt and excepted charities means that the Trustees do not have the power to dispose of the land and buildings until a school ceases occupation, which in turn requires the approval of the school governors and the Secretary of State. Consequently, the land and buildings are deemed to have £nil value for the purpose of the attached accounts.

Trustees’ expenses A number of the Trustees are clergy of the Roman Catholic Diocese of Westminster. They are housed and remunerated by the diocese and are reimbursed expenses for carrying out their ministry in the same way as other priests of the diocese.

The non-property assets, liabilities and transactions of the schools are not included in these accounts as they are neither owned nor controlled by the Charity.

However, no Trustee received any remuneration or expenses from the Charity in connection with their duties as Trustees during the year. No Trustee had any beneficial interest in any contract with the Charity.

Trustees The Trustees, i.e., the Directors of the Corporate Trustee, are appointed by the Archbishop of Westminster.

Key management personnel

The Trustees who were in office at the date of this report were as follows:

The key management personnel of the Catholic Diocese of Westminster comprises the senior management team of the curial offices/central services. The heads of the following departments are part of the senior management team together with the Financial Secretary: Education, Evangelisation, Youth, Caritas, Safeguarding, Property, Maintenance, Fundraising, Finance, ICT, Human Resources and Communications. Page 32


Diocese of Westminster Annual Report & Accounts 2015

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

Organisation

Key management remuneration is set by the Human Resources Committee, taking into account the market rates for similar roles. It is also the role of the Human Resources Committee to review the remuneration of the key management personnel periodically in order to recognise and reward outstanding performance.

The Charity is governed by the Trustees, who meet on a regular basis to attend to the financial, property, legal and administrative affairs of the diocese. The Finance Board: Comprising a number of Trustees, deals with the day-to-day operational affairs of the diocese.

Statement of Trustees’ responsibilities

The Audit and Risk Committee: The membership of which includes two Trustees and an independent member (Mr K Ingram), monitors the integrity of the accounts and reviews the Charity’s internal financial controls and risk processes. The committee takes delegated responsibility on behalf of the Board of Trustees for ensuring that there is a framework of accountability; for examining and reviewing all systems and methods of control, both financial and otherwise, including risk analysis and risk management; and for ensuring that the Charity is complying with all aspects of the law, relevant regulations and good practice.

The Trustees are responsible for preparing the annual report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and its subsidiaries, and the income and expenditure thereof for that period. In preparing these accounts, the Trustees are required to: • select suitable accounting policies and then apply them consistently;

In addition to this committee, the following committees advise the Trustees on various matters relating to the governance of the Charity:

• observe the methods and principles of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102);

Investment Committee: The committee intends to bring specialist knowledge to bear on the Charity’s investment strategy. Appointed to assist the Board of Trustees, its responsibility is to develop and review the investment objectives and risk priorities and to ensure that the Charity’s investment objectives are implemented effectively and within desirable risk and ethical parameters. The committee monitors progress towards the successful implementation of the above on a quarterly basis.

• make judgements and estimates that are reasonable and prudent; • state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and

Human Resources Committee: The committee advises, forms and monitors the HR agenda of the diocese. It reviews and recommends to the Trustees any major changes in diocesan HR strategy, legal matters or employee benefits. It also ensures that all diocesan HR policies, practices and procedures are complete and administered in a professional and legal manner, fully meeting all current UK employment legislation, and that they are also in accordance with Westminster Roman Catholic Diocesan Trust’s governing document and with the social and moral teaching of the Catholic Church and, as appropriate, with the provisions of canon law.

• prepare the accounts on the going concern basis, unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Property Committee: The committee assists the Trustees in making decisions involving property matters across the diocese through delegated powers. In all other instances, the role of the Property Committee is to carry out necessary advisory work and recommend to the Trustees as it shall see fit. It exercises oversight of strategic decisions relating to property matters, taking into account both the civil law of England and Wales and canon law.

The Trustees are responsible for the maintenance and integrity of financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. Page 33


2015   Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

Diocesan Education/Schools Commission: Appointed by the Cardinal Archbishop as a decision-making body which acts in his name, it is responsible in all areas related to education, in schools and colleges, as set out in canon law and English law. It is responsible to the diocesan Trustees for the financial aspects of providing and maintaining Catholic education in the diocese.

The three main risks facing the Charity, as identified by the Trustees, are (1) safeguarding; (2) ensuring appropriate quality of education is provided across the diocesan Catholic schools while maintaining the Catholic ethos; and (3) the continuing financial sustainability of the Westminster Roman Catholic Diocesan Trust. Safeguarding ‘Being loved and being kept safe go to the very core of the Church’s ministry’ (Safeguarding with Confidence 2007). The safeguarding of children and of adults at risk is of paramount importance to the Westminster Roman Catholic Diocesan Trust. Failing to prevent abuse of the vulnerable has serious repercussions for the individual, the mission of the Church and the diocese. The consequences of abuse of individuals can be grave and long-lasting. The Charity’s aim is to prevent this from happening to children or adults at risk, whilst in the care of the Church.

Details of the members of all diocesan committees can be found on page 70. The parishes in the diocese are established and operate under the Church’s Code of Canon Law, which bestows on them separate canonical status. This explains their treatment in these accounts, specifically the columnar approach and their classification as restricted funds. Also, under canon law, each parish must have a finance committee to help the parish priest in the administration of the parish. As required by canon law, a diocesan finance committee which meets under the auspices of the Trustees (as distinct from the Finance Board referred to above), exists to give advice to the Archbishop on financial matters. It must also be consulted on administrative matters of major importance.

To mitigate this risk, the Charity follows the policies and procedures put in place by the Catholic Church in England and Wales, which are enforced by the Safeguarding department. This department promotes a safe recruitment policy and assists both curia and parishes with the implementation of prevention measures at recruitment stage. The department also educates and informs on best practice and is currently rolling out a training programme across the Charity to reinforce safeguarding procedures. This programme includes induction days for new parish safeguarding coordinators, mandatory safeguarding training for clergy, religious and chaplains and a new resource centre of materials via the intranet. The Safeguarding team also responds to any allegation, past or present, of inappropriate behaviour or actual abuse by any person working for the Charity, whether paid or voluntary, liaising with the police and other statutory authorities. An independent Safeguarding Commission oversees the work of the Safeguarding team in this respect.

Administrative and advisory bodies In the diocese there is also the Council of Priests. This meets at least twice a year with the Archbishop to discuss and to give advice on a range of issues. The council is composed of 22 deans and an additional representative of each of the 22 deaneries, together with the Auxiliary Bishops and other senior priests of the diocese. At the re-establishment of historic forms of church government in 1850, each diocesan Bishop was empowered to appoint a Chapter of Canons to take responsibility for the organisation and maintenance of his cathedral. In the Diocese of Westminster 18 senior priests constitute the Chapter of Canons and are consulted by the Archbishop on important diocesan matters. They have also been constituted as the College of Consultors to fulfil the legal requirements of Canon 502 s.3.

The Westminster Roman Catholic Diocesan Trust is committed to the promotion of a ‘one church approach’ to the safeguarding of children and adults at risk and the promotion of a culture of safeguarding throughout the Charity.

Risk management

Education The Charity contributes to the education of around 90,000 pupils of all backgrounds, of all faiths and none, through its 215 schools. The Charity’s goal is to ensure that every pupil receives the best possible formation, despite the many challenges involved in achieving this.

The Westminster Roman Catholic Diocesan Trust has in place a risk review process and all risks are recorded on a risk register. Risks across all departments are identified and rated using a RAG score. Each department is required to reduce risk by implementing mitigating actions. The risk register is reviewed each quarter and updated accordingly. The risk register is also reviewed by the Audit and Risk Committee at least annually.

One of the risks identified is the potential underperformance of the Westminster Roman Catholic Diocesan Trust schools. To ensure that a proper standard Page 34


Diocese of Westminster Annual Report & Accounts 2015

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

of education is provided to the pupils of each school, the Trustees, via the Schools Commission and Education Service, regularly monitor the Ofsted results. If a school receives notice that it requires improvement, the Education Service provides support to help it improve to the necessary standard. Additionally, the Charity, through Section 48 of the Education Act 2005, inspects each school for the quality of Catholic life and formation of its pupils.

The financial health of the Charity is affected by many variables which are outside its control: the level of voluntary income received, the value of investment property, the economic environment, the requirement for major capital investments in schools and churches and oscillation of the financial markets. Proactive steps are being taken to mitigate the risk that any of these items might adversely affect the financial health of the Charity.

The Charity also encourages co-operation between various schools and the sharing of resources. This not only happens within the Catholic academy trusts that have been established, but across all schools within the Charity. The Catholic school network allows for best practices to be shared and practical support to be provided to schools in need, an example being the relationship between Blessed John Henry Newman and Nicholas Breakspear secondary schools, whereby the two shared resources and leadership skills. The latter had received an Ofsted score of requires improvement which has now improved to good.

The income of the Charity is susceptible to external economic shocks. For this reason, there are initiatives in place to address fundraising and asset management in a systematic manner. The majority of the Charity’s operational income is from parishioners’ contributions and the level of donations is dependent upon the general economic environment. To ensure the financial viability of parishes, the Trustees encourage each parish to save for the long-term future. For the overarching long-term liabilities of the Charity, the Trustees have a more direct approach in addressing the foreseen funding shortfall by more focused fundraising. Starting in 2012, the Charity had a major fundraising drive, Growing in Faith, not only to help with needs in the parishes but also to address the forecast funding shortfall in the priests training fund and for the care of the sick and retired priests. Due to the immense generosity of our parishioners, the forecast need for funding has been addressed for the near future. Nevertheless, the growing number of priests going into retirement and the increasing costs of training new priests and permanent deacons still pose a challenge in the long term.

An additional risk facing the Catholic school system is the recent legislative changes on the provision of education services. The Charity is currently facing many changes, including several policies on the academy programme, alterations to the school funding regime and cuts to government and local authority funding for education. These are fundamental changes, which substantially affect the educational framework of the Westminster Roman Catholic Diocesan Trust and, in particular, the most vulnerable of the schools. The Schools Commission retains canonical oversight of the diocesan schools in maintaining the Catholic ethos, even if they are converted to academies.

On the expenditure and investment side, the Charity has financial management processes to assess and approve investment decisions, taking into consideration risk and impact on its financial health. Major projects, particularly school projects, are monitored on a monthly basis to ensure that the expenditure is within approved budget as well as being on time and within scope. Additionally, for the central service functions and agencies the Charity has an annual budgetary process which ensures proper yearly funding of the operations. The Trustees encourage the parishes also to complete annual budgets.

The Trustees are preparing not only to respond to these legislative challenges but always to improve the formation provided to the pupils. The diocesan Education Service officers have begun to consult with schools to examine the various academy models that would mesh with and enable our school system. In the meantime, the Charity is increasing support for schools, creating networks and ensuring vigilance in financial matters. Financial sustainability of the Charity As a charity, the Westminster Roman Catholic Diocesan Trust has a demanding list of programmes it would like to achieve and support. These programmes include enhancing parish community spaces, educating young people and taking care of our neighbours and the poor. Monetary assets are one of the many enablers used to help get the works completed. Thus the financial health of the Charity is crucial in ensuring that its objectives are achieved year in and year out in a sustainable manner.

Finally, the volatility of the financial markets is one of the biggest risks facing the Charity. As volatility affects investments, it also affects the ability of the Trustees to fund future activity by reducing the level of free reserves. In light of this, the Trustees have adopted an appropriate risk strategy and continually monitor the performance of the investment fund with the advice of the Investment Committee. Page 35


2015   Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

Connected charities

Under charity law the Trustees must seek to obtain the best financial return possible consistent with commercial prudence. Following the Church’s teaching, the Trustees also strive to maintain a socially responsible investment policy through a process of making value judgements about products, services and corporate practices of companies as well as their financial efficacy. This process and its decisions to invest and disinvest, and of seeking change through shareholder action, is also strengthened through its proactive engagement in the Churches Investment Group, an ecumenical body.

The main charities connected with the Charity are listed below. • Westminster Ecclesiastical Education Fund (WEEF) (Charity Registration No. 312528). WEEF is a charity for the training of students to the priesthood and is the recipient of the annual diocesan collection. • Hare Street House (Charity Registration No. 247200). Hare Street is a charity for the provision of a house for the Archbishop.

As described above, the Trustees believe that they should strive to ensure that the Charity’s investments are aligned to the Church’s teaching. The Trustees estimate that for 2015 the implementation of the socially responsible investment or ethical policy has reduced the CCLA returns by 0.7% and reduced the returns on the funds invested in Sarasin and Partners LLP by 1.1% in their UK portfolio and 0.6% in the international portfolio. Additionally, the annual audit of the investments has highlighted that 0.4% of the investments held within the portfolio are in potential contradiction to the Charity’s ethical policy. The Trustees are continually working to examine the underlying assets and rectify this where possible.

A full list of all connected charities is given in note 21 to the attached accounts. All the charities listed are the responsibility of the Corporate Trustee, but outside the scope of these accounts, as they are separate registered charities and are not controlled by the Charity. In some cases they are administered by the central Finance office of the Charity and many have similar or related charitable objectives. Investment policy Introduction The investment guidelines are set by the Trustees. The Investment Committee implements and reviews the guidelines.

The Trustees and their representatives have continued to engage with investee companies over the past year with the aim of addressing issues of importance to the Church and to improve long-term shareholder returns.

The Charity’s investments comprise units in the Mutual Investment Fund, the investment policy of which is determined by an Investment Committee which meets on a quarterly basis to monitor the fund’s performance. At the end of the year the fund was invested as follows: 24.9% in UK equities, 3.7% in alternative investments; 46.9% in overseas equities; 11.0% in UK fixed interest; 2.3% in property and 11.2% in liquid assets. The overall long-term objective is to manage the portfolio on a total return basis.

The Mutual Investment Fund has had a very successful year in relation to climate change engagement. The shareholder resolution that it co-filed, alongside a broad coalition of investors, at last year’s Royal Dutch Shell AGM received the support of management and over 95% of the company’s shareholders. This commits the company to disclosing further information about: ongoing greenhouse gas emissions management, portfolio resilience against the International Energy Agency’s 2035 scenarios, low carbon energy R&D and its ongoing public policy work, amongst other areas. Building on this success the Mutual Investment Fund joined together with other investors with assets under management of over $8 trillion in co-filing a similar resolution at Rio Tinto.

The Trustees regularly review information from the investment managers, monitoring performance of the portfolio and the investment strategy. The Trustees have reviewed the performance of investments during the year and remain confident that their medium-term investment policy is being achieved. The Investment Committee reviews the choice of investment managers every three years.

The Charity has also benefitted from engagement conducted by the Church Investors Group (CIG). Over the past three years the CIG have engaged with 60 FTSE 350 constituent companies who had failed to achieve a C on the CDP Carbon Performance Bands. Following engagement, 32 of these companies made sufficient improvements to move up a CDP Band. Assessment by the University of Edinburgh has shown, to a 95% confidence level, that this would not have happened without our engagement. The Westminster Roman Catholic Diocesan Trust is a member of the CIG and sits on the Steering Group.

Ethical investment policy The Catholic Church’s understanding of ethical investment is drawn from a series of social encyclicals which followed on from Pope Leo XIII’s own encyclical letter Rerum Novarum in 1891. That document set out to restore in contemporary industrial society the priority of the human over the economic, and the spiritual and moral over the material. In the management of investments both charity law and Church teaching apply. Page 36


Diocese of Westminster Annual Report & Accounts 2015

Report of the Directors of the Corporate Trustee – Year to 31 December 2015

Finally, CCLA, one of the Mutual Investment Fund’s fund managers, have completed their three-year long engagement programme with FTSE 100 constituent financial services and pharmaceutical sector companies on the Living Wage. Following this programme, AstraZeneca, GlaxoSmithKline, Smith and Nephew, Aberdeen Asset Management, and Lloyds Banking Group became accredited Living Wage employers. This meant that the companies committed to paying all directly-employed and indirectly-employed staff (such as contractors whose primary place of work was the companies’ workplaces) a salary that at least matched that set by the Living Wage Foundation. The Trustees believe that this process is driving real change in the activities of companies and the investment sector at large. During the next twelve months the Charity will seek to engage with companies on the important issue of modern day slavery and human trafficking in supply chains. Signed on behalf of the Trustees:

Trustee Approved by the Board on 31 October 2016.

Page 37


2015   Annual Report & Accounts

Diocese of Westminster

Independent auditor’s report

Independent auditor’s report to the Directors of the Westminster Roman Catholic Diocese Trustee

to identify material inconsistencies with the audited accounts and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

We have audited the accounts of the Westminster Roman Catholic Diocesan Trust for the year ended 31 December 2015, which comprise the consolidated statement of financial activities, the consolidated and parent charity balance sheets, the consolidated statement of cash flows, the principal accounting policies and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Opinion on the accounts In our opinion the accounts: • give a true and fair view of the state of the affairs of the Group and Charity as at 31 December 2015 and of the Group’s income and expenditure for the year then ended;

This report is made solely to the Directors of the Westminster Roman Catholic Diocese Trustee (the Trustees), as a body, in accordance with Section 144 of the Charities Act 2011 and with regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Charities Act 2011. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: • the information given in the Report of the Directors of the Corporate Trustee is inconsistent in any material respect with the accounts; or

Respective responsibilities of Trustees and auditor As explained more fully in the statement of Trustees’ responsibilities set out in the Report of the Directors of the Corporate Trustee, the Trustees are responsible for the preparation of accounts which give a true and fair view.

• sufficient accounting records have not been kept; or • the accounts are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Scope of the audit of the accounts An audit involves obtaining evidence about the amounts and disclosures in the accounts sufficient to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the Charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the accounts. In addition, we read all the financial and non-financial information in the Report of the Directors of the Corporate Trustee

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 31 October 2016

Page 38


Diocese of Westminster Annual Report & Accounts 2015

Consolidated statement of financial activities – Year to 31 December 2015

Parochial funds

Curial funds Unrestricted funds Notes £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2015 £’000

Restated Total 2014 £’000

Income: Donations and legacies .. Collections, donations and legacies

1

1,965

7,449

9,414

25,749

35,163

32,532

.. Assessments

2

119

119

119

163

.. Commercial trading operations

3

135

135

649

784

950

. Investment income and interest receivable

4

299

212

511

2,002

2,513

2,654

Other trading activities

Charitable activities

5 736

736

1,296

2,032

1,828

1,604

359

1,963

6,782

8,745

7,647

4,832

4,832

1,332

6,164

5,840

9,690

8,020

17,710

37,810

55,520

51,614

3

6

6

503

509

492

6

12,032

1,364

13,396

26,119

39,515

38,785

12,038

1,364

13,402

26,622

40,024

39,277

12,337

. Rental income from functional properties Parish and similar activities Other income . Net gains on disposal of tangible assets

10

Total income Expenditure: Cost of raising funds . Fundraising trading: cost of goods sold and other costs Charitable activities . Advancement of the Roman Catholic faith primarily in the Diocese of Westminster Total expenditure Net (expenditure) income before transfers and investment gains

7

(2,348)

6,656

4,308

11,188

15,496

15

5,073

(1,131)

3,942

(3,942)

Net income before investment gains

2,725

5,525

8,250

7,246

15,496

12,337

Net gains on investments

1,230

135

1,365

4,980

6,345

4,879

Net income

3,955

5,660

9,615

12,226

21,841

17,216

Transfers between funds

246

246

246

(713)

4,201

5,660

9,861

12,226

22,087

16,503

Total funds brought forward at 1 January 2015

33,859

28,563

62,422

131,703

194,125

177,622

Total funds carried forward at 31 December 2015

38,060

34,223

72,283

143,929

216,212

194,125

. Actuarial gains (losses)

8

Net movement in funds Reconciliation of funds

All of the Group’s activities derived from continuing operations during the above two financial periods.

Page 39


2015   Annual Report & Accounts

Diocese of Westminster

Consolidated balance sheet – 31 December 2015

Restated Total 2014 £’000 94,610

Notes

Curial £’000

Parochial £’000

Total 2015 £’000

Tangible assets

10

17,900

80,677

98,577

Programme related investments

11

2,909

2,909

Investments

12

35,451

37,230

72,681

67,626

56,260

117,907

174,167

162,236

Fixed assets

Current assets Stocks Debtors

13

Cash at bank and in hand

61

61

66

8,815

1,414

10,229

9,237

23,240

26,535

49,775

40,212

32,055

28,010

60,065

49,515

(15,228)

(1,606)

(16,834)

(15,964)

16,827

26,404

43,231

33,551

382

(382)

17,209

26,022

43,231

33,551 195,787

Liabilities Creditors: amounts falling due within one year

14

Net current assets before adjustment for inter-fund indebtedness Elimination of inter-fund indebtedness Net current assets Total net assets excluding pension liability Pension liability

8

Total net assets including pension liability

73,469

143,929

217,398

(1,186)

(1,186)

(1,662)

72,283

143,929

216,212

194,125

34,223

143,929

178,152

160,429

The funds of the Group Restricted funds

15

Unrestricted funds . Designated funds

16

1,775

1,775

1,845

. Tangible fixed assets fund

17

17,816

17,816

19,259

. Programme related investments fund

18

2,909

2,909

16,746

16,746

14,254

8

(1,186)

(1,186)

(1,662)

15,560

15,560

12,592

72,283

143,929

216,212

194,125

. General funds .. Free reserves .. Pension reserve

Approved by the Trustees and signed on their behalf by:

Trustee Approved on: 31 October 2016 Page 40


Diocese of Westminster Annual Report & Accounts 2015

Charity balance sheet – 31 December 2015

Notes

Total 2015 £’000

Restated Total 2014 £’000

Tangible assets

10

98,427

94,454

Programme related investments

11

2,909

Investments

12

70,191

65,134

171,527

159,588

10,022

9,653

47,949

38,317

57,971

47,970

(29,006)

(27,790)

28,965

20,180

200,492

179,768

Fixed assets

Current assets Debtors

13

Cash at bank and in hand

Liabilities Creditors: amounts falling due within one year

14

Net current assets Total net assets excluding pension liability Pension liability

8

Total net assets including pension liability

(1,186)

(1,662)

199,306

178,106

161,246

144,410

The funds of the Charity Restricted funds

15

Unrestricted funds . Designated funds

16

1,775

1,845

. Tangible fixed assets fund

17

17,816

19,259

. Programme related investments fund

18

2,909

16,746

14,254

(1,186)

(1,662)

15,560

12,592

199,306

178,106

. General funds .. Free reserves .. Pension reserve

8

Approved by the Trustees and signed on their behalf by:

Trustee Approved on: 31 October 2016 Page 41


2015   Annual Report & Accounts

Diocese of Westminster

Statement of cash flows Year to 31 December 2015

Notes

2015 £’000

Restated 2014 £’000

A

11,393

8,938

Investment income and interest received

2,513

2,654

Proceeds from the disposal of tangible fixed assets

6,333

6,906

Purchase of tangible fixed assets

(7,706)

(8,421)

Expenditure on programme related investments

(2,909)

(61)

(676)

Cash flows from operating activities: Net cash provided by operating activities Cash flows from investing activities:

Investment in joint venture Purchase of investments Net cash (used in) provided by investing activities Change in cash and cash equivalents in the year

(1,830)

463

9,563

9,401

Cash and cash equivalents at 1 January 2015

B

40,212

30,811

Cash and cash equivalents at 31 December 2015

B

49,775

40,212

Notes to the cash flow statement for the year to 31 December 2015. A

Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds (as per the statement of financial activities)

2015 £’000 22,087

Restated 2014 £’000 16,503

Adjustments for: Impairment charge

1,662

Depreciation charge

3,128

3,183

Gains on investments

(6,176)

(4,839)

Investment income and interest receivable

(2,513)

(2,654)

Surplus on disposal of tangible fixed assets

(6,164)

(5,840)

Pension cost less contributions payable

(230)

(238)

Actuarial (gains) losses

(246)

713

5

(4)

(992)

(304)

832

2,418

11,393

8,938

2015 £’000 49,775

Restated 2014 £’000 40,212

Decrease (increase) in stocks Increase in debtors Increase in creditors Net cash provided by operating activities

B

Analysis of cash and cash equivalents

Total cash and cash equivalents: Cash at bank and in hand

Page 42


Diocese of Westminster Annual Report & Accounts 2015

Principal accounting policies – 31 December 2015

Reconciliation with previous Generally Accepted Accounting Practice In preparing the accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was needed.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below. Basis of preparation These accounts have been prepared for the year to 31 December 2015.

The following restatements were required:

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

• The list of other registered charities considered integral to the work of the Charity and the furtherance of its objectives has been considered and, as a consequence, it has been concluded that the income, expenditure and net assets of Diocese of Westminster Sick and Retired Priests Fund should come within the scope of these accounts and the comparative figures be updated accordingly;

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

•A  ll holdings within the Mutual Investment Fund in the Charity’s name are now included as fixed asset investments with a corresponding creditor where the beneficial owner is one or more of the charitable subsidiaries or a connected charity;

The date of transition to Charities SORP FRS 102 was 1 January 2014. The end of the accounting reference date in respect to the Group’s and Charity’s last annual accounts determined in accordance with the previous financial reporting framework was 31 December 2014. This is the first set of the Group’s and Charity’s accounts prepared in accordance wih the Charities SORP FRS 102.

•G  overnance costs which were previously reported as a separate line of expenditure within the statement of financial activities have now been allocated to expenditure on charitable activities;

The Charity constitutes a public benefit entity as defined by FRS 102.

•M  ovements in the defined benefit pension deficit in the year have been reanalysed. The changes resulted in an increase in the comparative figure for expenditure and a decrease in actuarial losses; and

The accounts are presented in sterling and are rounded to the nearest thousand pounds.

• Investment gains are now presented as a component of reported net income.

Reconciliation of reported net assets As required by section 35 of FRS 102, the balance sheets as at 1 January 2014 and 31 December 2014 have been restated as if FRS 102 were in force at the beginning of the previous accounting period. The reconciliations below show the effect of the change in reporting framework for the balance sheets as at 1 January 2014 and 31 December 2014. Group Net funds as previously stated Consolidation of Diocese of Westminster Sick and Retired Priests Fund Net funds as restated

Reconciliation of reported net income per statement of financial activities The adjustments detailed above have had the following effect on the net income per the statement of financial activities for the year to 31 December 2014: Group Net income per statement of financial activities as previously stated Consolidation of Diocese of Westminster Sick and Retired Priests Fund

31 December 2014 £’000 185,759

1 January 2014 £’000 170,765

8,366

6,857

194,125

177,622

31 December 2014 £’000 11,962 1,509

Pension scheme adjustment

(50)

Investment gains treated as a component of net income

3,795

Net income per statement of financial activities for the year as restated

Page 43

17,216


2015   Annual Report & Accounts

Diocese of Westminster

Principal accounting policies – 31 December 2015

Critical accounting estimates and areas of judgement

Basis of consolidation and scope of the accounts

Preparation of the accounts requires the Trustees and management to make significant judgements and estimates.

The statement of financial activities and the balance sheet consolidate the accounts of the Charity and its subsidiary undertakings made up to the balance sheet date. No separate statement of financial activities has been prepared for the Charity as the results of the charitable and trading subsidiaries are clearly shown in the consolidated statement of financial activities and supporting notes.

The items in the accounts where these judgements and estimates have been made include: • a ssessing the probability of the receipt of legacy income; •e  stimating accrued expenditure including employees’ accrued holiday pay;

The accounts also include the net assets and transactions of other charities under the control of the Directors of the Corporate Trustee and whose activities are integral to those of the Westminster Roman Catholic Diocesan Trust and the furtherance of its objectives. Such charities (see note 22) have been incorporated into the accounts as special trusts (or restricted funds).

•e  stimating the useful economic life of tangible fixed assets for the purposes of determining a depreciation rate; •e  stimating the fair value of listed investments for which defined market prices were not available at the balance sheet date; • a ssessing the appropriateness of the assumptions and methodology used in determining the fair value of investment properties;

The accounts do not include the results and net assets of connected entities (note 21).

• a ssessing the need for any provision against slow moving and/or obsolete stock within Westminster Cathedral Limited;

Income is recognised in the period in which the Charity and/or Group has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Income comprises donations and legacies, income from the commercial trading activities of trading subsidiaries, investment income and interest receivable, income from charitable activities comprising rental income from functional properties and income from parish and similar activities, and other income comprising net gains on disposal of tangible fixed assets.

Income recognition

• a ssessing the recoverability of outstanding debtors and the need for any provision for bad or doubtful debts; • a ssessing the appropriateness of the assumptions and methodology used by the scheme actuary in the valuation of the defined benefit pension scheme; and •d  etermining the value of designated funds needed at the year end to meet specific future expenditure.

Donations (including income from offertory and similar collections) are recognised when the Group and/ or Charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for when the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the Group and/or Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Group and/ or Charity and it is probable that those conditions will be fulfilled in the reporting period.

Assessment of going concern The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 December 2016, the most significant areas that affect the carrying value of the assets held by the Charity are the level of investment return, the performance of the investment markets and property values (see the investment policy and the risk management sections of the Trustees’ report for more information).

In accordance with the Charities SORP FRS 102 volunteer time is not recognised. Legacies are included in the statement of financial activities when the Group and/or Charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the Group and/or Charity. Page 44


Diocese of Westminster Annual Report & Accounts 2015

Principal accounting policies – 31 December 2015

required in settlement and the amount of the obligation can be measured reliably.

Entitlement is taken as the earlier of the date on which either: the Group and/or Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the Group and/or Charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Group and/or Charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Group and/or Charity, or the Group and/or Charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the Group and/ or Charity.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows: • Expenditure on raising funds comprise the costs of the subsidiary companies in connection with their commercial trading operations and investment management fees paid directly to investment managers. • Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the Charity and its subsidiary charities through the provision of charitable activities. Such costs include staff costs and other direct overheads attributable to those purposes. A detailed analysis of the expenditure is provided in note 6. Charitable donations in support of Catholic foundations and projects are included in the statement of financial activities in the year when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued for but are disclosed as financial commitments in the notes to the accounts.

Income generated from the commercial trading activities of trading subsidiaries comprises income from the sale of merchandise and tickets for concerts and similar performances of the Westminster Cathedral Choir and building development projects. It is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

All expenditure is stated inclusive of irrecoverable VAT.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

Support and governance costs Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the Charity and its subsidiary charities, it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Income from the rental of functional properties is recognised when the income is receivable under the contract for hire or lease document, when the amount can be measured reliably and it is probable such income will be received.

Governance costs comprise the costs involving the public accountability of the Charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Income from parish and similar activities is defined more specifically in note 5 to these accounts and is recognised when the relevant parish has entitlement to the income, the amount can be measured reliably and it is probable that the income will be received. Other income is measured at fair value and accounted for on an accruals basis.

All support costs and governance costs are included within the expenditure of the one principal charitable activity of the Group and Charity i.e., advancing the Catholic faith primarily in the Diocese of Westminster.

Expenditure recognition

Functional freehold property

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Group and/or Charity to make a payment to a third party, it is probable that a transfer of economic benefits will be

Functional freehold properties, comprising the cathedral, churches, presbyteries, halls and similar buildings owned by the Group and/or Charity prior to 1997, are included in the balance sheet at an estimate of their original cost. Page 45


2015   Annual Report & Accounts

Diocese of Westminster

Principal accounting policies – 31 December 2015

These estimates were arrived at by discounting the 1997 insurance value of the properties by reference to the inflation statistics relating back to the date on which the properties were acquired or built. For the purpose of these accounts, and consistent with the transitional rules set out in FRS 102, the 1997 valuations are defined as deemed cost.

carried out. Any monies due to the Charity, or held by the Charity on behalf of schools and academies, at the balance sheet date are treated as debtors or creditors respectively on the balance sheet. Details of the diocesan voluntary aided schools and academies are given in the diocesan Year Book and on the diocesan website.

Additions to functional freehold properties since January 1998 are included in the accounts at cost or, where such assets have been donated or bequeathed to the Group and/or Charity at their estimated market value at the date of the gift.

Furniture, fittings and equipment Items of furniture, fittings and equipment costing in excess of £1,000 are capitalised and depreciated on a straight line basis in order to write off their original cost over the expected useful lives of the assets concerned. The depreciation rates applied are as follows:

Properties previously classified as investment properties but, owing to a change in use, reclassified as functional properties are included within functional freehold property at their fair value immediately prior to reclassification. Such fair value will normally equate to market value as determined within the immediately preceding five year period. Original cost figures are not available for many such properties and it is deemed appropriate that the valuations be regarded as their deemed cost at the point of reclassification.

• Office equipment - 20% • Fixtures and fittings - 10% to 25% Individual works of art, treasures and plate are not capitalised as they are regarded as heritage assets which are held in a manner consistent with the advancement of the Catholic faith, have very long lives and are worth preserving indefinitely.

No value is identified in the accounts in respect to freehold land.

Motor vehicles

Freehold buildings are depreciated at rates calculated to write off their estimated historic cost, on a straight line basis, as follows:

Motor vehicles are capitalised and depreciated over a four year period in order to write off the cost of each vehicle over its estimated useful life.

• Listed properties - 200 to 300 years

Fixed asset investments

• Other properties - 100 years

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The condition and net book values of all properties are regularly reviewed to ensure that the depreciation policies adopted are and remain appropriate. Disposals of freehold property are accounted for on completion.

The Charity currently does not acquire put options, derivatives or other complex financial instruments.

Voluntary aided and grant maintained schools and academies

As noted above one of the financial risks the Charity is exposed to is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Land and buildings legally owned by the Charity and occupied rent free by Catholic voluntary aided schools and academies, which are exempt charities and publicly funded, are valued at £nil for the purposes of these accounts. The Trustees consider that no meaningful value can be attributed to these assets since they are not used directly by the Charity, do not generate income, and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues.

Properties held for investment purposes are included in these accounts at open market value. The valuation has been determined by the Trustees, with professional assistance. Details of the dates and basis of the valuations are given in note 10 to the accounts. Disposals of investment properties are accounted for on completion.

The governors are responsible for the buildings and for the repair and refurbishment costs thereof and accounting for any grants received in respect of these costs. The Charity assists governors in managing projects and may make grants via the curial office to assist the governors with their liability for school and academy building and repair costs. The Charity administers these monies as managing agent and makes the appropriate payments to contractors for work

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Page 46


Diocese of Westminster Annual Report & Accounts 2015

Principal accounting policies – 31 December 2015

Fund accounting

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

•C  urial funds Curial funds can be used across the whole of the diocese and are subdivided between: –R  estricted funds being monies received for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

Investments in commercial companies under a joint venture agreement are included within the accounts at the Group’s and/or Charity’s share of the net assets of the commercial company as at the balance sheet date.

–D  esignated funds being monies set aside out of general funds and designated for specific purposes by the Directors of the Corporate Trustee.

Investments in subsidiary companies are included on the balance sheet at cost.

– Tangible fixed assets fund represents the net book value of those tangible fixed assets held by the curial for unrestricted purposes.

Programme related investments Programme related investments are defined as significant financial contributions made by the Charity towards the development or refurbishment of property assets to which the Charity has freehold title but which are used by other charitable and not-for-profit organisations (including schools) for purposes consistent with the Charity’s own objectives. Programme related investments are included in the accounts at cost with any permanent diminution in value below such cost accounted for as charitable expenditure.

–P  rogramme related investments fund represents the value of the Group’s and Charity’s programme related investments. –G  eneral funds comprising those monies which may be used towards meeting the charitable objectives of the Charity and used across the whole of the diocese at the discretion of the Directors of the Corporate Trustee. •P  arochial funds These comprise legacies, donations, trust income and interest and relate to specific parishes. Under canon law the monies must be utilised by individual parishes and cannot be used across the whole of the diocese. As such, the funds are all regarded as restricted for the purpose of these accounts.

Stocks Stocks of miscellaneous items are valued at the lower of cost and net realisable value. Debtors Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Pension costs The Charity contributes to a defined benefits pension scheme, closed for accrual of benefits since 2005, providing benefits based on final pensionable salary. The assets of the scheme are held and managed separately from those of the Charity.

Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Pension scheme assets are measured at fair value at each balance sheet date. Liabilities are measured on an actuarial basis using the projected unit method. The net of these two figures is recognised as an asset or liability on the balance sheet. Any change in the asset or liability between balance sheet dates is reflected in the statement of financial activities.

Creditors and provisions Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Employer’s contributions in respect of the Charity’s defined contribution scheme, were charged to the statement of financial activities in the year in which they are payable to the scheme until the scheme was closed on 31 March 2015. All eligible members of staff are auto-enrolled in a workplace pension scheme. Employer contributions to the scheme are charged to the statement of financial activities in the year in which they are payable to the scheme. Page 47


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

1

Collections, donations and legacies Collections, donations and legacies in the year amounted to £35,163,000 (2014 restated - £32,532,000) of which £7,449,000 (2014 - £6,168,000) are restricted curial funds and £25,749,000 (2014 - £24,550,000) are restricted for application within parishes. Included in the total figure are legacies of £2,525,000 (2014 - £1,507,000), £763,000 of which are restricted for application within parishes (2014 - £777,000).

2

Assessments Six parishes operated by specific religious congregations are not consolidated into these accounts. Income from assessments (£119,000 in 2015 and £163,000 in 2014) represents monies received by the Charity from those parishes and is unrestricted. The diocesan assessment, being monies transferred from parishes to the curia to fund diocesan wide programmes, is included under transfers between funds. In 2015, £5,228,000 was transferred from parishes to curial funds (2014 £5,294,000).

3 F undraising trading: cost of goods sold and other costs This category of expenditure comprises the expenditure of the Charity’s trading subsidiaries. At 31 December 2015 the Charity owned the entire called up ordinary share capital of the following trading companies: Company

Country of incorporation

Principal activity

Aedificabo Limited

England

Management of capital projects

Westminster Cathedral Limited

England

Miscellaneous trading activities

Audited accounts of the companies will be filed with the Registrar of Companies. Summaries of the trading results of Aedificabo Limited and Westminster Cathedral Limited are given below.

Turnover

Unrestricted funds

Restricted funds

Aedificabo Limited

Westminster Cathedral Limited

2015 £’000 135

2014 £’000 301

2015 £’000 649

2014 £’000 649

(320)

(298)

Cost of sales Gross profit

135

301

329

351

Administrative expenses

(74)

(132)

(183)

(195)

Profit on ordinary activities before Gift Aid and taxation

61

169

146

156

(61)

(169)

(146)

(161)

Profit on ordinary activities before taxation

(5)

Taxation

Loss for the year

(5)

Gift Aid

Administrative expenses include amounts recharged by the Charity and eliminated on consolidation of £68,000 (2014: £132,000). At 31 December 2015 the called up share capital of Westminster Cathedral Limited comprised 2 ordinary £1 shares and its reserves amounted to £4,343 (2014 - £4,343). At 31 December 2015 the called up share capital of Aedificabo Limited comprised 2 ordinary £1 shares and its reserves amounted to £nil (2014 - £ nil).

Page 48


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

4

Investment income and interest receivable Parochial funds

Curial funds Unrestricted funds £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2015 £’000

Total 2014 £’000

Investment income 97

144

241

158

399

473

124

42

166

1,770

1,936

1,904

221

186

407

1,928

2,335

2,377

78

26

104

74

178

277

Total 2015

299

212

511

2,002

2,513

2,654

Total 2014

439

236

675

1,979

2,654

Income from listed investments Rents and similar income Interest receivable

All rents are from investment properties situated in the United Kingdom.

5

Charitable activities

Curial unrestricted funds

2015 £’000 736

2014 £’000 812

Parochial restricted funds

1,296

1,016

2,032

1,828

Rental income from functional properties

The Charity and Group own a number of properties which are used primarily for functional purposes. However, within such properties, certain halls and rooms are occasionally rented out, often for purposes consistent with the charitable objectives of the Charity and resulting in the income shown above.

2015 £’000 110

Parish and similar activities Income from clubs

Restated 2014 £’000 54

Chaplaincies

34

22

Catechetics

318

317

2,472

2,382

Candles, repository and newspapers

103

105

Parish centres

1,561

1,479

Parish activities

1,213

1,192

Board and lodging

Miscellaneous Parochial restricted funds Curial restricted funds – School contributions Curial unrestricted funds

971

630

6,782

6,181

359

364

1,604

1,102

8,745

7,647

School contributions School contributions are voluntary payments made by the schools and academies in the diocese towards the costs of the school projects team at Vaughan House and agreed as Catholic Education Contributions with schools and academies. Page 49


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

6

Advancement of the Roman Catholic faith primarily in the Diocese of Westminster

Unrestricted funds £’000 344

Restricted funds £’000 –

Total 2015 £’000 344

Restated Total 2014 £’000 324

Communications

152

152

152

Safeguarding

130

130

117

Auxiliaries & vicar general

774

774

891

Clergy & consecrated life

672

569

1,241

1,533

Curial funds Cardinal’s office and Archbishop’s House

Ecumenical & interfaith

50

50

46

Education & formation

881

346

1,227

1,047

3,121

438

3,559

3,794 1,518

Pastoral and related work

151

151

1,662

1,662

355

355

350

3,258

3,258

2,112

400

400

537

82

11

93

125

Total 2015

12,032

1,364

13,396

12,546

Total 2014

10,295

2,251

12,546

Growing in Faith project Impairment of tangible fixed assets National bodies Administration Miscellaneous Governance costs

Depreciation of £368,000 is included in the above curial fund expenditure.

School building projects The Charity receives this money in its capacity of managing agent for the governors only and, as such, these amounts are excluded from the statement of financial activities.

During the year, the Group and Charity received government grants of £29,580,352 (2014 - £31,033,794) in connection with major repair and capital projects at Church schools and academies in the diocese. These monies, together with the contributions received from governors are used to fund contractor payments also administered by the Charity acting as managing agent for Church schools and academies concerned. During the year, the Charity made payments to contractors of £30,756,091 (2014 - £32,504,706).

Consequently, only the Charity’s net contribution to costs after deducting the contributions from governors and government grants towards the costs of the projects concerned is included as resources expended in the statement of financial activities.

Page 50


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

6

Advancement of the Roman Catholic faith primarily in the Diocese of Westminster (continued)

Parochial restricted funds Non-clergy salaries Property repairs and renewals Clergy stipends Other fixed asset depreciation Liturgical expenses Housekeeping Candles, repository and papers Office and administration Heat, light and water Council tax, insurance and rates Parish activities Parish centre expenses Donations/grants Catechetics Supply priests Property depreciation Travel expenses Miscellaneous expenses Bank interest Mass stipends distributed Governance costs

2015 £’000

2014 £’000

5,035 3,814 2,179 1,900 1,623 1,278 1,034 1,022 1,843 1,049 1,245 382 1,143 366 388 860 245 520 58 128 7 26,119

4,828 4,048 2,059 1,949 1,578 1,248 975 1,019 1,848 1,036 1,235 324 1,557 381 403 845 261 437 52 135 21 26,239

The above are the gross costs relating to each activity/department. Many of these have related income flows which are included within total income. Due to the number of charitable donations made out of both curial and parochial funds it is not practical to provide details of individual donations.

7

Net (expenditure) income before transfers and investment gains

This is stated after charging: Parochial funds

Curial funds

Group Staff costs (note 8)

Unrestricted funds £’000 4,723

Restricted funds £’000 25

Total funds £’000 4,748

Restricted funds £’000 5,111

Total 2015 £’000 9,859

Restated Total 2014 £’000 8,553

73

5

78

7

85

78

1

1

1

2

10

367

1

368

2,760

3,128

3,183

Auditor’s remuneration • Audit fees • Other services Depreciation (note 10)

Page 51


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

8

Staff costs and remuneration of key management personnel

Group

2015 £’000

Restated 2014 £’000

8,945

7,733

649

569

Staff costs during the year were as follows: Wages and salaries Social security costs Other pension costs

265

251

9,859

8,553

The average number of employees and full time equivalents (FTE) was:

Charitable activities

2015 2015 Total FTE Employees 325 636

2014 2014 Total FTE Employees 305 647

The number of employees who earned more than £60,000 (including benefits but excluding employer’s pension contribution) during the year was as follows: Group

2015

2014

£60,001 - £70,000

1

2

£70,001 - £80,000

1

£80,001 - £90,000

1

£90,001 - £100,000

1

£100,001 - £110,000

1

1

4

4

Employer contributions totalling £29,862 (2014 - £22,937) were made to defined contribution schemes in respect of all those employees who earned £60,000 or more during the year (as defined above).

A number of the Directors of the Corporate Trustee (i.e., Trustees) are clergy of the Diocese of Westminster. They are housed and remunerated by the diocese and are reimbursed expenses for carrying out their ministry in the same way as other priests of the diocese. However, none of the Trustees received any remuneration in respect of their services as a Trustee during the year (2014 - £nil), nor were they reimbursed any expenses connected with their duties as Trustees (2014 - £nil).

The key management personnel of the Charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the Directors of the Corporate Trustee, the Financial Secretary and the senior management team of the curial offices of the Westminster Roman Catholic Diocesan Trust. The total remuneration (including taxable benefits and employer’s pension contributions) of the key management personnel for the year was £849,249 (2014 - £735,223).

Page 52


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

8

Staff costs and remuneration of key management personnel (continued)

Pension schemes Defined benefit scheme Until 6 July 2005 the Charity operated a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Charity, being invested with Friends Life Services Limited and Sarasin & Partners LLP. The contributions were determined on the basis of triennial valuations by a qualified actuary using the projected unit method.

From 6 July 2005 accrual of benefits, death in service benefits and member contributions ceased and as a result the actuary recommended that the Charity contribute £18,400 per month from April 2008 to improve the level of funding. The level of funding has been reviewed on a yearly basis and since October 2012 it stands at £25,242 per month.

The most recent valuation, at 6 April 2013, showed that the market value of the scheme’s assets was £6,594,000 and that the level of funding on an ongoing basis was 74%. The principal assumptions made were that the investment returns would be 4.7% per annum before retirement, 2.9% per annum after retirement and that pensions for future services would increase by 2.55% per annum. No allowance was made for possible discretionary increases in pensions beyond those prescribed in the scheme rules.

Financial Reporting Standard 102 requires the surplus or deficit on the scheme as at 31 December 2015, calculated in accordance with the requirements of FRS 102, to be included on the balance sheet. For the purposes of FRS 102, the assets of the scheme have been taken at market value and the liabilities have been calculated by a qualified independent actuary.

The following information is based upon an actuarial valuation of the scheme at 31 December 2015 by a qualified independent actuary. The major assumptions used by the actuary were: 31 Dec 2015 % per annum

31 Dec 2014 % per annum

Inflation

3.4

3.4

Salary increases

2.0

2.4

Rate of discount

3.9

3.6

Rate of increase in pensions in payment and deferred pensions

2.4

2.4

The mortality assumptions used were as follows: 2015 years

2014 years

Men

22.2

22.1

Women

24.6

24.5

Longevity at age 65 for current pensioners

Page 53


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

8

Staff costs and remuneration of key management personnel (continued)

Pension schemes (continued) Defined benefit scheme (continued) The assets and liabilities in the scheme were:

Equities

2015 £’000 2,653

Restated 2014 £’000 2,640

Corporate bonds

154

66

Government bonds and index linked

486

484

Property

39

35

Alternative investments

57

51

3,045

3,264

Annuities

741

566

7,175

7,106

Present value of scheme liabilities

(8,361)

(8,768)

Deficit in the scheme – net pension liability

(1,186)

(1,662)

Cash Total assets

The net pension liability decreased from £1,662,000 in 2014 to £1,186,000 in 2015. Total operating charge and net interest recognised in the statement of financial activities: 2015 £’000 (18)

Restated 2014 £’000 (17)

Total operating charge

(18)

(17)

Interest income on Scheme assets

256

286

Interest cost on Scheme liabilities

(311)

(333)

Net interest on cost net defined benefit liability

(55)

(47)

Total amount recognised in the statement of financial activities

(73)

(64)

Administration costs

Net gains (losses) recognised in the statement of financial activities: 2015 £’000 Actual return on assets excluding amounts included in net interest

Restated 2014 £’000

(244)

266

Actuarial gains (losses) on Scheme obligations

490

(979)

Re-measurement gains (losses) recognised in the statement of financial activities

246

(713)

Contributions The total contributions made by the employer in the year were £303,000 (2014 - £303,000). The contributions to be paid by the employer to the scheme for the year beginning after 31December 2015 are £303,000.

Page 54


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

Pension schemes (continued) Defined benefit scheme (continued) The reconciliation of the Scheme benefit obligation is as follows:

Opening defined benefit obligation Administration costs Interest cost

2015 £’000 8,768

Restated 2014 £’000 7,654

18

17

311

333

Actuarial (gains) losses

(490)

979

Benefits paid

(246)

(215)

Closing defined benefit obligation

8,361

8,768

The reconciliation of the fair value of the Scheme assets is as follows: 2015 £’000 7,106

Restated 2014 £’000 6,466

Interest income

256

286

Contribution by Westminster Roman Catholic Diocesan Trust

303

303

(244)

266

Opening fair value of Scheme assets

Actual return on assets excluding amount included in net interest Benefits paid

(246)

(215)

Closing fair value of Scheme assets

7,175

7,106

Defined contribution scheme and auto-enrolled pension scheme The Charity also operated a pension scheme providing benefits based on defined contributions. The Charity contributed 8% of salary and this was matched by employee contributions of 1%, 3% or 4% of salary. The scheme was administered by Friends Life Services Limited. This scheme was closed on 31 March 2015. The Charity now offers an auto-enrolled pension scheme for new employees into which the active members of the above closed scheme were transferred. This scheme is provided by Standard Life. The total contributions made by the employer in 2015 to the defined contribution scheme and the auto-enrolled pension scheme amounted to £265,000 (2014 - £251,000).

9

Taxation

Westminster Roman Catholic Diocesan Trust is a registered charity and, therefore, is not liable to income tax, corporation tax or capital gains tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities. Other charities which form part of the Group and whose accounts are consolidated within these accounts include Diocese of Westminster Sick and Retired Priests Fund, The Moorfields Charity and Westminster Cathedral Trust all of which are registered charities. Consequently, these too are not liable to income tax, corporation tax or capital gains tax on income or gains derived from their charitable activities. Aedificabo Limited and Westminster Cathedral Limited are commercial trading companies both of which transfer their taxable profits, if any, to Westminster Roman Catholic Diocesan Trust each year under the Gift Aid scheme (see note 3). Neither entity, therefore, incurs a direct taxation charge. Page 55


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

10

Tangible fixed assets

Group

Plant, Functional equipment, freehold fixtures and property fittings £’000 £’000

Motor vehicles £’000

Total £’000

Cost or valuation 102,683

28,501

348

131,532

5,298

2,379

29

7,706

1,220 (246)

– –

– (30)

1,220 (276)

108,955

30,880

347

140,182

Original cost

81,553

30,880

347

112,780

Deemed cost - valuation (1997)

26,182

26,182

Deemed cost – valuation (2013)

1,220

1,220

108,955

30,880

347

140,182

14,410

22,204

308

36,922

Depreciation charge for year

1,017

2,085

26

3,128

Impairment charge for year

1,662

1,662

(78)

(29)

(107)

17,011

24,289

305

41,605

At 1 January 2015 Additions Reclassification from investment properties (note 12) Disposals At 31 December 2015

Depreciation and impairment At 1 January 2015

On disposals At 31 December 2015 Net book values At 31 December 2015

91,944

6,591

42

98,577

At 31 December 2014

88,273

6,297

40

94,610

102,510

28,353

348

131,211

5,297

2,371

29

7,697

1,220 (246)

– –

– (30)

1,220 (276)

108,781

30,724

347

139,852

Original cost

81,553

30,724

347

112,624

Deemed cost – valuation (1997)

26,008

26,008

Charity Cost or valuation At 1 January 2015 Additions Reclassification from investment properties (note 12) Disposals At 31 December 2015

Deemed cost – valuation (2013)

1,220

1,220

108,781

30,724

347

139,852

Depreciation and impairment 14,385

22,064

308

36,757

Depreciation charge for year

1,013

2,074

26

3,113

Impairment charge for year

1,662

1,662

(78)

(29)

(107)

16,982

24,138

305

41,425

At 31 December 2015

91,799

6,586

42

98,427

At 31 December 2014

88,125

6,289

40

94,454

At 1 January 2015

On disposals At 31 December 2015 Net book values

Page 56


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

10

Tangible fixed assets (continued)

Works of art, treasures and plate are not capitalised in these accounts. They are considered to be heritage assets for the purposes of the Statement of Recommended Practice Accounting and Reporting by Charities. The assets are integral to the Charity’s overall objective of advancing the Catholic religion. They all have very long lives and are worth preserving indefinitely. The Trustees consider that it would be prejudicial to the safe custody of these assets to disclose details of their value and usage in these accounts.

Various of the Charity’s properties are subject to restrictions or covenants over their use and/or disposal. It is likely that there are material differences between the open market values of the Charity’s land and buildings and their book values. These arise from the specialised nature of some properties and the effects of inflation. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of the Trustees, is not justified in terms of the benefit to the users of the accounts.

The Charity has continued to adopt a policy of not revaluing its tangible fixed assets. The historical cost of the functional properties stated above at a valuation cannot be ascertained with accuracy. The valuation, which was performed in 1997, is an estimate of original cost based on the replacement cost of each property in 1997, discounted back to the original year of purchase and hence for the purpose of these accounts and consistent with the transition rules set out in FRS 102, the 1997 valuations are defined as deemed cost.

Land and buildings legally owned by the Charity and occupied rent free by Catholic voluntary aided schools and academies, which are separate charities and publicly funded, are valued at £nil for the purposes of these accounts. The Trustees consider that no meaningful value can be attributed to these assets since they are not used directly by the Charity, do not generate income, and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues. During the year one of the Charity’s freehold properties with a net book value of £1,662,500 at 1 January 2015 was transferred for use, rent free, by a voluntary aided school within the diocese. As a direct consequence of this, the Charity will no longer be able to generate income from the property or dispose of it on the open market or put it to alternative use whilst occupation by the school, which may be indefinite, continues. As a result of this change in use, the net book value of the property has been reduced to £nil by the inclusion of an impairment provision.

During the year a review of the use of both properties classified at 1 January 2015 as functional properties and as investment properties was performed. As a consequence, it was deemed appropriate to reclassify five properties, regarded previously as investment properties, as tangible fixed assets. The values at which these five properties have been included within tangible fixed assets are their market value as determined within the past five years. Original cost figures are not available for these properties and it is deemed appropriate that the valuations be regarded as their deemed cost at the point of reclassification. All other tangible fixed assets are stated at cost or, where gifted or bequeathed to the Charity, at an estimate of their market value at the date of the gift.

Net gains on disposals

Capital commitments

The net gains on the disposal of tangible fixed asssets comprise:

At 31 December 2015 the Group and Charity had the following capital commitments:

Group and Charity

2015 £’000

2014 £’000

Group and Charity

Net gains on property disposals

6,158

5,813

Land and buildings – functional property

6

27

6,164

5,840

Other gains

. Contracted but not provided

Gains on property disposals in 2015 relate to the sale of Our Lady’s School, Limehouse at a gain of £4,832,000 and Laxton Place at a gain of £1,326,000. The proceeds of Laxton Place reverted to Camden Parish and those from Our Lady’s School, Limehouse will be used for education. In 2014, the gains on disposal related to the sale of All Saints Pastoral Centre.

2015 £’000

2014 £’000

3,085

1,913

The capital commitments are in respect to various parish and curial building works.

Page 57


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

11

Programme related investments

Programme related investments include certain properties not used directly by the Charity but which are used by other charitable and not-for-profit organisations for purposes consistent with the Charity’s objectives. In some cases rents will be received in future years but in other cases no rental agreement will be put in place. In 2015, no rents were received for any of these properties.

At 1 January 2015

2015 £’000 –

2014 £’000 –

Additions

2,909

At 31 December 2015

2,909

Group and Charity

Programme related investments comprise: 2015 £’000

2014 £’000

2,716

193

2,909

Contributions towards the construction of voluntary aided schools: St Richard Reynolds St Anne’s

Post balance sheet event

St Richard Reynolds is a primary and secondary school in Twickenham, Richmond which the Westminster Roman Catholic Diocesan Trust continues to build. The project includes: (1) the initial refurbishment of the two existing primary school buildings. A small financial contribution towards the cost of this will be received from the Department for Education; (2) the construction of a new building to accommodate the new secondary school. This will be funded jointly by the Catholic dioceses of Westminster and Southwark; and (3) the inclusion within the new building of space to accommodate Strathmore School, a special needs school, fully funded by the London Borough of Richmond.

On 22 March 2016, the Westminster Roman Catholic Diocesan Trust secured a £10 million bank loan for the purchase and refurbishment of the Friary. The Friary is a building adjacent to the cathedral complex and historically was part of the Catholic fabric in this location, holding a monastery for the Franciscans and the National Catholic Library. The building will be leased to the Westminster Cathedral Choir School, a charity connected to the Westminster Roman Catholic Diocesan Trust (see note 21), to house a pre-prep school. The purchase of this building will allow the Westminster Cathedral Choir School to expand and strengthen its provision of educational services.

St Anne’s is a secondary school in Enfield which the Westminster Roman Catholic Diocesan Trust intends to redevelop. Currently feasibility works are being conducted in respect to proposed alterations of the school site. If these demonstrate that the project is not viable, the investment incurred to date and included in the figures above will be written off as expenditure in future periods.

The purchase of the building and the conversion/ refurbishment costs are to be financed through the £10 million loan which has been granted by HSBC Bank plc. The loan, which is for a period of thirty years, is repayable in quarterly instalments commencing three years after initial utilisation with interest payable at 2% over the base rate. The loan repayments will be financed by rental income from a lease being negotiated between the Westminster Roman Catholic Diocesan Trust and Westminster Cathedral Choir School. Page 58


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

12

Investments

At 31 December 2015 investments comprised the following:

Listed investments

Group 2015 £’000 35,923

Restated Group 2014 £’000 35,729

Charity 2015 £’000 35,923

Restated Charity 2014 £’000 35,729

Investment properties

36,697

31,897

34,207

29,405

Joint venture

61

61

72,681

67,626

70,191

65,134

Listed investments During the year, listed investments under the control of the Westminster Roman Catholic Diocesan Trust principally comprised units in a Mutual Investment Fund. The Mutual Investment Fund comprises investments managed by Sarasin & Partners LLP and CCLA Investment Management Limited. At 31 December 2015 both Group and Charity held 234,869 units (2014 – 234,869 as restated) in the Mutual Investment Fund, equivalent to 100% (2014 – 100% as restated) of the total Fund. The market value of these units at 31 December 2015 amounted to £35,238,422 (2014 – £34,865,438) and their historical cost as at that date was £31,467,849 (2014 – £29,344,564). The above results are net of investment managers’ fees charged indirectly through the unit holdings of £84,261 in 2015 and £85,431 in 2014. Fees paid to the investment managers directly during the year amounted to £nil (2014 - £nil). At 31 December 2015 the composition of the listed investments comprising the Mutual Investment Fund was as follows:

Group and Charity

2015 %

2014 %

Fixed income

11.0

10.5

UK equities

24.9

26.3

Global equities

46.9

48.5

2.3

1.0

Property Alternatives Liquid assets (money market instruments and cash)

3.7

2.5

11.2

11.2

100.0

100.0

At 31 December 2015, listed investments held as part of the Mutual Investment Fund (the Fund) included the following individual holdings deemed material when compared with the overall valuation of the Fund as at that date:

Group and Charity Sarasin Equisar – Socially Responsible – I Inc

Percentage of fund % 19.5

Value £ 6,889

14.9

5,264

7.2

2,547

Sarasin Equisar – Socially Responsible (Sterling Hedged) – I Inc Blackrock – Ics Sterling Liq Heritage Acc

Page 59


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

12

Investments (continued)

Listed investments held at 31 December 2015 and their movements during the year were as follows: 2015 £’000

Group and Charity Market value

35,729

At 1 January 2015

194

Net unrealised gains during the year

35,923

At 31 December 2015

Investment properties Investment properties held at 31 December 2015 and their movements during the year were as follows: Group 2015 £’000

Charity 2015 £’000

31,895

29,405

(1,220)

(1,220)

6,022 36,697

6,022 34,207

Market value At 1 January 2015 Reclassification as tangible fixed assets (note 10) Unrealised gains on revaluation during the year At 31 December 2015

Investment properties are included in the accounts at valuations carried out in 2010, 2011, 2012, 2013, 2014 and 2015. It is the aim of the Directors that properties will each be revalued every five years. During 2007 the Charity began an exercise of revaluing its investment properties in accordance with United Kingdom Generally Accepted Accounting Practice. Certain properties are stated at a valuation determined on an open market basis during 2010 by Messrs Barnes Kirkwood & Woolf, Chartered Surveyors and in 2011 and 2012 by Albright Surveyors Limited, Chartered Surveyors. In each of 2013 and 2014 Albright Surveyors Limited revalued five of the investment properties on an open market basis. In 2015, nine properties were revalued by Smith and Knight Property Consultants. These valuations were conducted in accordance with the Practice Statements issued by the Royal Institution of Chartered Surveyors as set out in the Appraisal and Valuation Manual dated September 1995 as amended. It is not possible to ascertain with accuracy the original cost of the investment properties, the majority of which were purchased many years ago. The Trustees are of the opinion that the costs involved in researching such information outweigh the value of disclosing it.

Page 60


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

12

Investments (continued)

Joint venture The investment in the joint venture represents the Charity’s investment in Parish Accounting Services Limited, a company incorporated in England and Wales (Company Registration No 09503675) on 23 March 2015. Westminster Roman Catholic Diocesan Trust and Birmingham Roman Catholic Diocesan Trust both own one £1 share in the company which has purchased and developed accounting software for use by parishes within Roman Catholic dioceses. Each of the two partners to the joint venture have lent the company £72,000 to enable it to purchase and develop the software. A summary of the trading results and financial position of the company at 31 December 2015 is given right: Summary statement of income and retained earnings

Turnover

Period from 23 March 2015 to 31 December 2015 £’000 66 (73)

Cost of sales

(7)

Gross profit Administrative expenses

(14)

Loss on ordinary activities before taxation

(21) –

Taxation

(21)

Loss for the financial period and accumulated losses at 31 December 2015

Summary statement of financial position and retained earnings

Fixed assets

31 December 2015 £’000 118

Current assets

12

Current liabilities

(7) 5

Net current assets

123

Total assets less current liabilities

(144)

Creditors: amounts falling due after one year

(21)

Total net liabilities

The total net liabilities are represented by called up share capital of £2 and accumulated losses. The accumulated losses are shared equally by the two partners. As such, the investment by Westminster Roman Catholic Diocesan Trust as at 31 December 2015 comprises: 31 December 2015 £’000 72

Initial loan

(11)

Share of losses

61

Both parties to the joint venture are confident that the accumulated losses will be recouped from future trading profits.

Page 61


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

13

Debtors Group 2015 £’000

Restated Group 2014 £’000

Charity 2015 £’000

Restated Charity 2014 £’000

Receivable within one year Sundry debtors Prepayments and accrued income School expenditure recoverable from the Department for Education, Local Education Authorities and contract advances (see below and note 20) Loan to St Etheldreda Trust (see below)

949

1,774

1,363

2,252

1,488

342

867

280

6,308 635

6,115 –

6,308 635

6,115 –

Loan to Westminster Cathedral Choir School (see below)

142

136

142

136

Other loans (see below)

105

126

105

126

9,627

8,493

9,420

8,909

Receivable after more than one year –

142

142

Amount due from the Society of Jesus

263

263

263

263

Loan to The Cardinal Hume Centre

339

339

339

339

10,229

9,237

10,022

9,653

Loan to Westminster Cathedral Choir School

School expenditure recoverable from the Department for Education, Local Educational Authorities and contract advances represent amounts refundable from these bodies and from school governors in respect to work and maintenance to school properties and held by the Charity as custodian trustee. The loan to St Etheldreda Trust is made in accordance with a formal loan agreement for the refurbishment of 13 Ely Place, London EC1N 6RY. The loan attracts interest at the published bank base rate or 1%, whichever is higher. It is repayable by October 2016. The loan to Westminster Cathedral Choir School is made in accordance with a formal loan agreement and attracts interest at the published bank base rate or 1%, whichever is higher. It is repayable over seven years in equal annual instalments and repayments commenced on August 2010. Other loans receivable within one year comprise amounts advanced to priests, schools and season ticket loans to staff. Other than some school loans which are charged interest rates linked to bank base rates and have set repayment terms, loans are interest free.

Page 62


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

14

Creditors: amounts falling due within one year

School building projects (note 20)

Group 2015 £’000 6,959

Restated Group 2014 £’000 6,860

Charity 2015 £’000 6,959

Restated Charity 2014 £’000 6,860

Collections payable to third parties

1,410

1,253

1,410

1,253

PAYE and national insurance

243

228

243

228

Loans (see below)

127

39

127

39

Proceeds relating to the sites of former schools

1,309

1,309

1,309

1,309

Accruals and sundry creditors

1,566

986

1,659

861

3,638

3,600

15,717

15,551

662

662

662

662

Mutual Investment Fund creditors (see below) Funds held on behalf of the Belarusian Catholic Mission Funds held on behalf of the Congregation for the Eastern Churches

920

1,027

920

1,027

16,834

15,964

29,006

27,790

Amounts due in respect to school building projects represent amounts due to contractors in connection with work and maintenance to school properties held by the Charity as custodian trustee. The majority of the loans are interest bearing with interest rates linked to bank base rates. The Mutual Investment Fund creditors represent the amounts held within the Fund in the Charity’s name but where the beneficial owner is one or more of the charitable subsidiaries or connected charities. The beneficial owners are as follows:

Hare Street House

2015 £’000 584

Restated 2014 £’000 578

Westminster Ecclesiastical Education Fund

3,054

3,022

Group total

3,638

3,600

Diocese of Westminster Sick and Retired Priests Fund Westminster Cathedral Trust

5,355 4,505

5,298 4,457

The Moorfields Charity Charity total

2,219

2,196

15,717

15,551

Page 63


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

15

Restricted funds

Restricted funds comprise: 2015 £’000

Restated 2014 £’000

Charity 25,053

20,197

136,193

124,213

161,246

144,410

Subsidiary entities (curial)

9,170

8,366

Subsidiary entities (parochial)

7,736

7,653

178,152

160,429

Curial Parochial Group

Curial restricted funds The income funds of the curia include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purposes:

Growing in Faith Fund Sick and Retired Priests Fund

Restated At 1 January 2015 £’000 10,273

Income Expenditure £’000 £’000 5,898 –

Net gains £’000 –

Transfers £’000 (1,022)

At 31 December 2015 £’000 15,149 9,170

8,366

1,336

(581)

57

(8)

864

5

(37)

15

(7)

840

1,348

14

(230)

12

(5)

1,139

450

4

3

457

89

2

1

(1)

91

Trinity Fund

293

2

(66)

229

Wellesley Colley Fund

238

2

2

(1)

241

Harrow Education Fund

130

2

132

New School Building Fund

538

256

(2)

5

_

797

Archbishop’s Fund

235

235 1,029

Carroll Fund Masses Funds Poor Fund Ecclesiastical Education Fund

1,029

St Joseph’s Pastoral Centre

SPEC Fund

185

83

(17)

251

Property Repairs Fund

129

1

1

131

1,151

12

(27)

11

(5)

1,142

142

1

1

144

2,205

25

(50)

21

2,201 118

Post-ordination Studies Fund Missions Fund St John Southworth Fund Filipino Chaplaincy Fund

124

2

(9)

2

(1)

Other restricted funds

774

375

(411)

4

(15)

727

28,563

8,020

(1,364)

135

(1,131)

34,223

Page 64


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

15

Restricted funds (continued)

The specific purposes for which the funds are to be applied are as follows:

• St Joseph’s Pastoral Centre This fund is for a variety of specific projects agreed with individual donors.

• Growing in Faith Fund This fund comprises monies raised as part of the Growing in Faith campaign to ensure a vibrant future for the diocese. The monies will be used to: support parishes and ensure that they are sound, prayerful and sustainable; to support priestly life at all stages from formation, service in parishes and retirement; and to maintain the tradition of outreach to those in need.

• Property Repairs Fund This fund is available for repairs to diocesan properties.

• Post-ordination Studies Fund This fund is to support priests in further studies.

• Missions Fund This fund is to support the work carried out by missions.

• Sick and Retired Priests’ Fund This fund represents the net assets of the Charity’s subsidiary charity (see note 22).

• St John Southworth Fund This fund supports the work of parishes, organisations and projects across a range of issues including poverty, homelessness, old age and infirmity, and children with disabilities or who are in danger of deprivation.

• Carroll Fund The Carroll Fund is for charitable purposes within the United Kingdom.

• Filipino Chaplaincy Fund

• Masses Funds

This is to support the work of the Filipino Chaplaincy.

The Masses Funds represent monies held for Masses.

• Other restricted funds

• Poor Fund

Other restricted funds are for general charitable purposes of the diocese.

This fund is for the relief of poverty within the diocese.

• Ecclesiastical Education Fund

The transfers from curial restricted funds principally relate to Growing in Faith grants mainly to parishes and Caritas.

The Ecclesiastical Education Fund is for housing costs for priests.

Parochial restricted funds

• Trinity Fund

The parishes in the Diocese of Westminster are established and operate under the Church’s Code of Canon Law which bestows on them separate canonical legal status. As such, each parish has been treated as a separate restricted fund in these accounts. The total parish or parochial funds are administered, with guidance from the central Finance office, by the parish priests and are used to carry out the work of the church within local areas and help fund the curia. The transfers from the parochial restricted funds to the curial unrestricted funds represent the payment of the diocesan assessment by the parishes and contributions made towards the central costs of the diocese. Other restricted funds are for general charitable purposes of the diocese.

This fund is for major projects in poor parishes.

• Wellesley Colley Fund This fund is for general charitable purposes of the diocese and for the relief of poverty.

• Harrow Education Fund This fund is for school and catechetical activities in the Harrow Deanery.

• New School Building Fund This fund is for school building projects in the diocese.

• Archbishop’s Fund This represents a legacy which is for projects as approved by the Archbishop.

• SPEC Fund This fund represents monies received in respect of the SPEC Projects at All Saints Pastoral Centre and SPECEast in Poplar.

Page 65


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

16

Designated funds

The income funds of the Charity include the following designated funds which have been set aside out of unrestricted funds by the Directors for specific purposes:

Group and Charity Schools projects Other designated funds

At 31 December 2015 £’000 1,186

At 1 January 2015 £’000 1,186

New designations £’000 –

Utilised/ released £’000 –

659

7

(77)

589

1,845

7

(77)

1,775

The funds have been designated for the following purposes:

• S chools projects

This represents monies set aside for the school building projects. It is anticipated that the monies will be utilised during the two years ending 31 December 2017.

•O  ther designated funds

Other designated funds are monies set aside for diocesan charitable purposes.

17

Tangible fixed assets fund

At 1 January 2015

2015 £’000 19,259

Net movement in the year

(1,443)

At 31 December 2015

17,816

Group and Charity

The fixed assets fund represents the net book value of the tangible fixed assets held by the curial for unrestricted purposes.

18

Programme related investment fund

The programme related investment fund represents the value of the Group’s and Charity’s programme related investments. As explained in note 11, these investments comprise land and buildings owned by the Charity but used by other charitable and not-for-profit organisations with objectives consistent with those of the Charity. It is the intention of the Trustees that such assets should continue to be used for these purposes for as long as needed and as such their value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations. At 1 January 2015 £’000

Movement £’000

At 31 December 2015 £’000

St Richard Reynolds

2,716

2,716

St Anne’s

193

193

2,909

2,909

Group and Charity Voluntary aided schools:

Page 66


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

19

Analysis of net assets between funds Parochial funds

Curial funds Unrestricted funds £’000

Group

Restricted funds £’000

Total funds £’000

Restricted funds £’000

2015 Total £’000

Fund balances at 31 December 2015 are represented by: Tangible fixed assets

17,816

84

17,900

80,677

98,577

Investments

20,218

15,233

35,451

37,230

72,681

2,909

2,909

2,909

Net current (liabilities) assets

(1,697)

18,906

17,209

26,022

43,231

Total net assets excluding pension liability

39,246

34,223

73,469

143,929

217,398

Pension liability

(1,186)

(1,186)

(1,186)

Total net assets

38,060

34,223

72,283

143,929

216,212

Total unrestricted funds £’000

Total restricted funds £’000

2015 Total £’000

Programme related investments

Charity Fund balances at 31 December 2015 are represented by: Tangible fixed assets

17,816

80,611

98,427

Investments

32,294

37,897

70,191

2,909

2,909

Programme related investments

(13,772)

42,737

28,965

Total net assets excluding pension liability

39,247

161,245

200,492

Pension liability

(1,186)

(1,186)

Total net assets

38,061

161,245

199,306

Net current (liabilities) assets

Unrealised gains and revaluation reserve It is not possible to ascertain with accuracy the original cost of the investment properties, the majority of which were purchased many years ago and for which records no longer exist recording the costs of acquisition. The Trustees are of the opinion that the costs involved in researching such information outweigh the value of disclosing the accumulated unrealised gains or revaluation reserve. In the case of listed investments, part of the unrealised gains within the Mutual Investment Fund is attributable to connected charities. Consequently, any figure relating to those gains would not be meaningful.

Page 67


Diocese of Westminster Annual Report & Accounts 2015

Notes to the accounts – 31 December 2015

20

School and academy building projects

The Charity is the legal owner of properties comprising voluntary aided schools, academies and two independent schools within the diocese. As explained in the principal accounting policies these properties are valued at £nil for the purpose of these accounts except for the two voluntary aided schools classified under Programme Related Investments – St Richard Reynolds and St Anne’s. The responsibility for the improvement, extension and repair of the buildings lies with the governors. Grants towards such work are paid to the governors by the Department for Education (DfE) and the Local Education Authorities. As the

governors are responsible for incurring such expenditure and receiving the associated grant income, this income and expenditure is not included in these accounts. However, the Charity is closely involved in providing practical assistance to Catholic schools and academies in the Diocese of Westminster and acts as an agent for the governing bodies in administering building contracts and recovering grants and contributions towards cost. During the year ended 31 December 2015, the Charity acted as an agent for governors on school and academy building projects as summarised below:

Number of projects

2015 209

2014 279

Total amount spent

2015 £’000 30,756

2014 £’000 32,505

(29,580)

(31,034)

Net governors’ liability

1,176

1,471

Amounts owing on contracts at 31 December 2015 (note 14)

6,959

6,860

Amounts recoverable from Department for Education, Local Education Authorities and contract advances (note 13)

6,308

6,115

Less: grants received

21

Connected charities and related party transactions

The Charity is connected to a number of other charities. All such charities are the responsibility of the same Corporate Trustee, namely Westminster Roman Catholic Diocese Trustee. Hare Street House and Westminster Ecclesiastical Education Fund are administered by the central Finance office of the Westminster Roman Catholic Diocesan Trust and all of the connected charities have charitable objectives aligned to those of the Charity.

Charity Name

Charity Registration Number

Objectives

Hare Street House

247200

The provision of a house for the Archbishop

Norfolk Fund Charity

241675

Assisting young, poor Catholics

Westminster Ecclesiastical Education Fund

312528

The training of students for the priesthood

Westminster Cathedral Choir School

1063761

The training of children in church choral music

Hare Street House and Westminster Ecclesiastical Education Fund pay a management fee to Westminster Roman Catholic Diocesan Trust based on the market value of their investment holdings in the Mutual Investment Fund (note 12) to cover the cost of administrative services provided by the Charity.

Page 68


2015   Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2015

22

Financial activities of charitable subsidiaries •D  iocese of Westminster Sick and Retired Priests Fund

The operations of a number of other registered charities are considered integral to the Charity and therefore their income, expenditure and net assets have been consolidated with those of the Charity in these accounts. The charities concerned are as follows:

(Charity Registration No. 278136): a charity providing assistance to sick, elderly and retired clergy

A summary of the statement of financial activities and a statement of the net assets at 31 December 2015 of each of the charities is given below. Audited accounts of each charity will be filed with the Charity Commission.

• T he Moorfields Charity (Charity Registration No. 247198): a charity providing assistance to the Catholic parishes of Moorfields and Bunhill Row and assistance to Westminster Cathedral

•W  estminster Cathedral Trust (Charity Registration

No. 270637): a charity with the principal objectives of supporting Westminster Cathedral and preserving its fabric and music Diocese of Westminster Sick and Retired Priests Fund £’000 1,423

Income Expenditure Net gains on investments Net income (expenditure) and net movement in funds Net assets

23

24

Contingent liability

During 2014, the Charity agreed to act as guarantor to HSBC Bank plc to secure all liabilities in respect to a loan facility made available by HSBC Bank plc to St Etheldreda Trust (Registered Charity No. 1154426) in connection with the purchase and refurbishment of 13 Ely Place, London, EC1N 6RY. The maximum amount of the loan and hence the amount guaranteed by the Charity is £1,500,000. In return for the guarantee, the Charity has been granted a second legal charge over the freehold property purchased by St Etheldreda Trust at 13 Ely Place. The loan is for a period of 30 years with monthly capital repayments due to commence two years after the initial drawdown. Interest on the loan is charged at 1.5% above Bank Rate. St Etheldreda Trust is a charitable trust which owns both St Etheldreda’s Church and the adjoining presbytery which serve the Parish of St Etheldreda’s within the Catholic Diocese of Westminster.

The Westminster Cathedral Moorfields Trust Charity £’000 £’000 136 673

2015 Total £’000 2,232

Restated Total 2014 £’000 1,753

(675)

(60)

(732)

(1,467)

(1,289)

57

22

47

126

1,331

805

98

(12)

891

1,795

9,170

2,489

5,244

16,903

16,012

Related party transactions

Throughout the year, Directors of the Corporate Trustee who are not members of the clergy attend Mass and other services and events within the Diocese of Westminster in their capacity as parishioners. In the course of doing so, they will contribute to the offertory and make other financial contributions. The nature of such giving means that it is not possible to quantify the amount donated to the Charity by its Trustees during any financial year.

Page 69


2015   Annual Report & Accounts

Diocese of Westminster

Diocesan Committees – 31 December 2015

Finance Board

Rt Rev J Sherrington Rt Rev N Hudson Rt Rev P McAleenan Rt Rev J Wilson Rt Rev Mgr M Hayes Rt Rev Mgr T Egan Mr J Gibney

Audit and Risk Committee

Miss L Ferrar Rt Rev J Sherrington Mr K Ingram

Investment Committee

Mr P Pejacsevich Mr A Fitzalan-Howard Rt Rev Mgr T Egan Mr A Ndoca Mr R McAdie Mr P Camoletto

Human Resources Committee

Rt Rev J Sherrington Rt Rev Mgr M Hayes Miss L Ferrar Mr P Camoletto Mrs A Hayward

Property Committee

Rt Rev J Sherrington Mr W Bunge Mr M Collins Mr R Costelloe Mr C Shepherd Mr P Camoletto Mr T Gilbert

Education/Schools Commission

Rt Rev J Sherrington Mr J Asgian Mrs L Barton Mr E Conway Fr M Dunne Mrs S Flockton Mrs K Griffin Fr M Holman SJ Mrs J Jackson Mr M Rainsford Mrs P Singh OBE

These are current members at time of printing.

*

Page 70


Diocese of Westminster Annual Report & Accounts 2015

How to support the Diocese of Westminster The Diocese of Westminster is dependent on voluntary donations and you can make a real difference by supporting one or more of the following programmes:

You can make a donation online at www.rcdow.org.uk/donations. You can also obtain further information about the different ways that you can help by contacting:

• T he care of sick and elderly priests • T he training of new priests • E vangelisation and formation • T he inclusion of all people in the life of the Church • T he Trinity Fund (which provides a lifeline to parishes

Director of Development, Diocese of Westminster, 46 Francis Street, London SW1P 1QN

with financial problems)

Email: mikeinfurnari@rcdow.org.uk Tel: 020 7798 9375

•W  ork with young people • L ourdes pilgrimage •P  reserving church buildings

The Diocese of Westminster

North Hertfordshire

Stevenage East Hertfordshire

HERTFORDSHIRE Welwyn

St Albans

Dacorum

Hatfield Broxbourne

Hertsmere

Watford

ENFIELD

Three Rivers BARNET HARROW

HARINGEY

BRENT

CAMDEN

CITY

WESTMINSTER

HOUNSLOW HAMMERSMITH

Part of

& FULHAM

SURREY

Spelthorne

RICHMOND

Page 71

ISLINGTON TOWER

EALING

HILLINGDON

HACKNEY

KENSINGTON & CHELSEA

HAMLETS


2015   Annual Report & Accounts

Diocese of Westminster

About the Diocese of Westminster The Diocese of Westminster is one of the smallest dioceses in England and Wales in geographical area, but the largest in terms of Catholic population and priests. The diocesan boundaries include the London boroughs north of the River Thames, between the River Lea to the east, the Borough of Hillingdon to the west, the County of Hertfordshire to the north and the Borough of Spelthorne in Surrey. Since the restoration of the Catholic Hierarchy in 1850, its bishop has often been a Cardinal. His Eminence Cardinal Vincent Nichols is the eleventh Archbishop of Westminster, having been installed as Archbishop on 20 May 2009. In an increasingly cosmopolitan city, the diocese includes a wide range of ethnic and cultural diversity amongst its Catholic population. The Diocese of Westminster is also a Metropolitan See, having as members of its Province the Dioceses of Brentwood, Northampton, Nottingham and East Anglia. The governance of the diocese is under the care of the Archbishop’s Council, the members of which are the Archbishop, the Auxiliary Bishops, the Vicars General, the Chairman of the Council of Priests, the Private Secretary and the Chief Operating Officer/Financial Secretary.

Diocese of Westminster Archbishop’s House Ambrosden Avenue London SW1P 1QJ Tel: 020 7798 9033 Email: archbishop@rcdow.org.uk

Charity Registration Number 233699


Keep in touch with the Diocese of Westminster Westminster Roman Catholic Diocesan Trust Annual Report & Accounts 2015

www.

2017

Westminster Record

On our website Our website has the latest news about the work and mission of the Catholic Church in the diocese. It also includes full listings of all Catholic parishes and schools and hospital chaplaincies. You can visit our website at www.rcdow.org.uk On Facebook www.facebook.com/diocese.westminster On Twitter twitter.com/RCWestminster Westminster Record The Westminster Record is the newspaper for the Diocese of Westminster. Published every month, it includes news, features and photographs reflecting the mission and life of Catholic parishes, schools and people in the diocese. The Westminster Record costs just 20p, and can be bought in most parishes in the diocese. Westminster Year Book The 2017 Westminster Year Book contains full listings of Catholic parishes, priests, schools and societies. To be published in November 2016, it also includes the 2017 Liturgical Calendar. To order a copy please contact wyb@rcdow.org.uk

Produced by Communications Office of the Diocese of Westminster Printed by Gemini Print (Wigan) Ltd Designed by GADS Limited Diocese of Westminster 2016

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Westminster Roman Catholic Diocesan Trust

Annual Report & Accounts 2015

Annual Report and Accounts 2015  

Diocese of Westminster Annual Report and Accounts 2015

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