2013 Annual Report and Accounts by RCWestminster

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Westminster Roman Catholic Diocesan Trust

2013 Annual Report and Accounts

2013 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 Archbishop’s Private Secretary and the Financial Secretary.

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

Front and back cover photos: ©Mazur/catholicchurch.org.uk

Charity Registration Number 233699

Diocese of Westminster Annual Report & Accounts 2013

Contents Annual Report

Reports

Reference and administrative information

Introduction by Cardinal Vincent Nichols, Archbishop of Westminster

Disability and the Deaf Community

Social Isolation of the Most Vulnerable

Report of the Directors of the Corporate Trustee

Independent auditorâ&#x20AC;&#x2122;s report

Accounts Consolidated statement of financial activities

Consolidated statement of total recognised gains and losses

Parish Profile

Consolidated balance sheet

Financials

Charity balance sheet

Consolidated cash flow statement

Principal accounting policies

Notes to the accounts

Debt Challenge

Food Poverty

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2013 Annual Report & Accounts

Diocese of Westminster

Reference and administrative information

Trustee 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. The Directors of Westminster Roman Catholic Diocese Trustee (herein referred to as Trustees) are: His Eminence Cardinal V Nichols Rt Rev J Arnold Rt Rev J Sherrington Rt Rev Mgr T Egan Rt Rev Mgr M Hayes Rt Rev Mgr J O’Boyle Lord D Brennan QC Miss L Ferrar Rt Hon R Kelly Mr C Kemball Mr D Moseley

Financial secretary P Camoletto

Chief accountant D Smy FCA

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

Charity registration number 233699

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Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL

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

Principal bankers HSBC Bank plc 69 Pall Mall London SW1Y 5EY

Charity solicitors Winkworth Sherwood LLP Minerva House 5 Montague Close London SE1 9BB

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

Diocese of Westminster Annual Report & Accounts 2013

Cardinal’s Introduction

Each one of us is a missionary disciple called to proclaim the joy of the Gospel. This means, saying ‘Yes’ to everything that promotes human dignity; but ‘No’ to any kind of poverty that excludes our brothers and sisters from society. In Evangelii Gaudium Pope Francis makes it clear that the basis of our concern for society’s most neglected members is our faith in Christ, who was always close to the poor and outcast. 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” (Intima Ecclesiae Natura). This is why we founded Caritas Westminster. A primary task of Caritas Westminster is to identify poverty and exclusion within our Diocese. There may not be the same poverty and exclusion experienced by so many in other parts of our world. Nevertheless, from my own pastoral visits and meetings with pastoral workers arranged by Caritas Westminster, I know that there are numerous families struggling to live on an income insufficient to cover basic outgoings and who find themselves in serious debt; people without adequate housing or none at all; children who go to school in the morning without breakfast; disabled people deprived of opportunities to participate fully in society; old people isolated and alone. The good news is that Caritas Westminster is already making a genuine difference to these people’s lives. In this Review you will discover how, under the umbrella of Caritas Westminster, people in our parishes and Church organisations are reaching out to those otherwise relegated to the edges of society. From parish food banks and school breakfast programmes to professional support services, their work is sometimes the only thing standing between families and destitution. Without Caritas Westminster, and its partners in other Christian communities, religious groups and charities, the dehumanising effect of poverty would cut far deeper and be far more widespread. Thank you very much indeed to all who support the mission of Caritas Westminster with their expertise, unwavering dedication, financial contributions, and above all by their prayers. A sincere word of gratitude, too, to those who compiled this Report and the annual accounts they contain. So many are giving so generously in so many different ways; but please let us never forget that we also receive richly from those whom Caritas Westminster serves. Through them Jesus knocks at the door of our hearts, wishing to be let in, calling on us to step outside of ourselves and be liberated from our selfishness and self-satisfaction. Through them our hearts are filled with the joy of the Gospel.

His Eminence, Cardinal Vincent Nichols, Archbishop of Westminster

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2013 Annual Report & Accounts Diocese of Westminster Diocese of Westminster

Disability and the Deaf Community

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Diocese of Westminster Annual Report & Accounts 2013

Disability and the Deaf Community We are God’s work of art, created in Christ Jesus to live the good life as from the beginning he had meant us to live it. Ephesians 2.10

Context People with disabilities have rights and duties like every other individual yet they often face massive challenges with living situations, work and healthcare. The Church’s teaching insists upon a positive appreciation of those with disabilities and a consequent duty to provide for their needs. The Employment and Support Allowance (ESA), provided by the state, is an income replacement benefit provided to people of working age who are too ill to work because of a health condition or disability, of whom there were 2.49 million people in 2013. As the economy picks up disabled people can be left behind, yet need support. Charity must be expressed in such a way that the person with disabilities becomes an active agent in a relationship of love and not just the object of charitable actions.

Caritas Response The diocesan St Joseph’s Pastoral Centre was founded in 1978 in Hendon, North West London. It celebrates the gifts of people with learning disabilities and enables them to participate fully in the life of their church and community. Its work is carried out in two main areas. Outreach Co-ordinators and Volunteers offer spiritual and social support to families in our parishes who embrace members with learning disabilities; and at the Activities Centre in Hendon over 190 students, from all faiths or none, participate in life-enhancing therapeutic, vocational or leisure courses. There are also more reflective courses on offer, such as sacramental preparation, support and advice, training and a telephone befriending service. St Joseph’s is a place to make friends, learn new things, take part in activities, start on the pathway to employment, use a computer, go to a book club, have a massage, take part in a sport, sing or bang the drums, paint, produce a play, explore words and numbers or get a qualification; as a centre of lifelong learning, it offers something for most people, regardless of their ability. It is truly a place where people with learning disabilities have their talents recognized and where they lie at the heart of everything that happens.

St Joseph’s feels the same; all have a sense of belonging whatever their connection to this community. The growing reputation of St Joseph’s was strengthened in 2013 as it came under the umbrella of Caritas Westminster. There was an increase in numbers attending the Activities Centre and its profile among parish communities grew as services continued to improve and develop. This can be seen in the establishment of more Saturday Clubs in parishes, more training for clergy and catechists, more volunteer interest and greater awareness of the needs of people with learning disabilities and their families. This has been achieved through the commitment and dedication of staff, volunteers and the people who use our services. The Deaf Service is based at St Joseph’s Pastoral Centre. Throughout the diocese it works with support groups for the hard of hearing, Deaf, and Deafblind, allowing them to share their gifts and participate fully in the life of the Church. Meetings ran throughout 2013 for the Bible Study Group, Retired People’s Lunch Group, Liturgy Group and Prayer Group, offering support and access for members of the Deaf Community. People have the opportunity to share and explore ideas and encourage and inspire one another. There are groups that run catechesis and adult formation in the faith, such as in Welwyn Garden City and Kings Cross, where families are being supported as their children prepare for their First Holy Communion. There is a counselling service which, as well as one to one counselling, offers life skills courses on issues like anger management. There are also courses run on liturgical signing. During 2013 the service went on annual pilgrimages to Walsingham and Lourdes, organised a canal boat trip and interpreted at the World Youth Day @ Home event at Aylesford, for Deaf people attending. The response was so positive and the young people were so interested that workshops were set up with over 75 young people learning to sign the “Our Father”.

There are also regular social activities: discos, race nights, karaoke evenings, Bollywood nights, barbecues, a Rainbow Club during the holidays, inclusive football teams; in fact there are any amount of fun things to enjoy. Everyone who works, volunteers or is a beneficiary of Page 5

2013 Annual Report & Accounts Diocese of Westminster

The Future The strengths and successes of these services have led us to consider expansion. In 2014 we hope to pilot a Connect @ St Josephâ&#x20AC;&#x2122;s in a parish centre - thereby establishing a hub for local people to find activities, lifelong learning and advocacy services. Such services are scarce and demand is high across the diocese. Based in a parish, the hub will be a visible symbol of Catholic social action, providing services and attracting volunteers not only from the parish itself, but also from the wider local community. More specifically, by providing specialized training for dedicated catechists and tailored materials for those with intellectual disabilities and their families, the hubs will also provide an opportunity to enhance and encourage those young individuals and their families to participate more fully in the sacramental life of the parish whilst aiding their integration into the fullness of its social life too.

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Cardinal Vincent visits St Josephâ&#x20AC;&#x2122;s Pastoral Centre

Diocese of Westminster Annual Report & Accounts 2013

Eye Witness:

Working with Peter St Joseph’s Pastoral Centre asked me to work as a catechist with a 10 year-old boy with autism, Peter*, to prepare him for his First Holy Communion. The training sessions for catechists of children and adults with special needs gave me greater confidence to work with Peter and with his whole family. I made weekly visits to Peter in his home, hoping to gain his trust. St Joseph’s also sent an area outreach worker who was supportive and encouraging, showing me how to use the storyboard pack with Peter and his sister Mary. Meanwhile the parish priest prepared the congregation for Peter’s unconventional behaviour before he came to the parish centre for weekly sessions with the storyboard. We set up a separate sacred space for him into which he could retreat after going into Mass for a few minutes. Each week Peter stayed longer. With time, and with great joy from his family and the wider parish family, Peter made his First Holy Communion.

Joe - garden enterprise participant I first came to St Joseph’s in 2013, and joined the Horticulture course to learn about gardening. I did not have a job before I came here, and was spending a lot of my time drinking. My life has changed a lot. I now come to St Joseph’s on Mondays and Wednesdays, and I have been promoted to their Enterprise Garden Scheme, which means I am on a pathway to employment. I have also got work at the Harrington Centre on Tuesdays and Thursdays. By Friday I am pretty tired and glad to have a day off. I have learned that I cannot have a drink and have a job. St Joseph’s has made a huge difference to my life. I am now busy and have things to do with my day. I love the food, the building, and I have lots of friends. I enjoy planting and watering and digging on the allotment which keeps me fit and the fresh air is good for me. * Names changed for reasons of anonymity

The presence of the planned Caritas Development Workers in these key hubs spread across the diocese will also provide a platform for the expansion of the Westminster Deaf Service itself. Supported by the Core Team, they will be able to respond to requests for deaf awareness and sign language training and offer more comprehensive sacramental and social inclusion in the life of parishes across the diocese.

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2013 Annual Report & Accounts

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Diocese of Westminster

Social Isolation

Diocese of Westminster Annual Report & Accounts 2013

Social Isolation of the Most Vulnerable You must love the Lord your God with all your heart, with all your soul and with all your mind. This is the greatest and the first commandment. The second resembles it: You shall love your neighbour as yourself. Matthew 22:37-39

Context In a world of ever more fragmented lives, families and communities, loneliness and isolation are taking their toll, whether it be in self-neglect, abandonment, exclusion or cold disregard. Social isolation among our rapidly ageing population is one of the greatest challenges facing society. Many have social care needs, due to mobility issues and hearing and visual impairments, and cannot leave their homes. Around 370,000 over 75s have no contact whatsoever with other people on a typical day. But it is not only the elderly. Solo living, coupled with a culture that exalts individualism, leads to isolation. Britain has seen a big rise in people living alone, from 17% of all households in 1971 to 31% now. Bedroom tax and housing benefit cuts are wrenching families out of their communities and driving them into other neighbourhoods, even other cities. Troubled youth, ex-offenders, struggling lone parents and those seeking refuge and/or a new life of opportunity and hope often feel the cool face of indifference in response to their requests for help. Here is a problem of epic proportions, and the loneliness crisis is being recognised on the political agenda.

Caritas Response It is often the cumulative effect of small actions that will help alleviate loneliness: dropping in a Sunday paper, asking to borrow something, saying good morning over the garden fence. It is these minimal interactions that make us feel human and make the difference between a good or a bad day. Diocesan agencies and many committed parish outreach initiatives have long been active in these areas. In this past year Caritas Westminster has focused on the plight of the isolated and lonely over-75s in our communities. Those who once were objects of respect, love and admiration in our families and parishes find that with families far removed and old friends gone they now experience disability, frailty or lack of confidence. The consequence is that many languish, day after day, within the confines of their four walls.

are particularly likely to feel lonely and when most community services are not available. Two such Contact the Elderly tea parties set up in 2013 with the support of Caritas Westminster are now thriving. St Monica’s in Palmers Green consists of volunteers and previously active, older parishioners, reuniting a once separated community. St George’s parish group in Enfield has fielded a volunteer cohort of mixed ages reaching out to lonely and isolated individuals from beyond the Catholic community. Each guest is collected from home by a volunteer driver and taken to a host’s home, where they are warmly welcomed to join a small group for tea, talk and companionship. The group has a different host each month, but the drivers and guests remain the same. These enthusiastic volunteer drivers, willing bakers, tea party hosts and group co-ordinators build up unique and caring relationships by embracing once isolated older guests. Real friendships are formed and some volunteers often help guests with weekly shopping and transport to and from hospital appointments, as well as by checking up on their general welfare. This means that over months and years acquaintances turn into friends and loneliness is replaced by companionship. This model helps to address the emotional needs of older people who wish to remain in their own homes, but whose diminished mobility makes it difficult for them to maintain regular social contact. They are brought back into the heart of their community: respected and valued as our faith not only upholds, but demands. This is a highly successful model that has captured the imagination of the Catholic community in the diocese and one which Caritas Westminster will roll out in many other interested parishes in the coming year.

Contact the Elderly, a partner organisation of Caritas Westminster, has helped create monthly tea parties for such individuals in fellow parishioners’ homes. The tea parties operate once a month, normally on a Sunday afternoon, the time that older people living alone Page 9

2013 Annual Report & Accounts Diocese of Westminster

The Future Caritas Westminster will also expand its reach to address the plight of the following three groups of people who experience indignity and suffering as a result of social exclusion: Vulnerable young people: Last year saw a further 1 million 16- to 24-year-olds in the UK being classified, not to say pigeonholed, as Neets (Not in Education, Employment or Training). Numbers are steadily rising and this trend is expected to continue. Migrants and asylum seekers: Migrants living in this country, including many families with young children, disproportionately fall through the social safety net through no fault of their own, with no recourse to public

Above: Older guests and their hosts enjoy an afternoon of companionship at a Contact the Elderly Tea Party. Page 10

funds and therefore at greater risk of destitution, sickness, exploitation and abuse. Many parishes with a high volume of such migrants and their families already have projects caring for their welfare and Caritas Westminster aims to support and develop this work further in the coming year. Victims of human trafficking: The shameful increase in the presence of human trafficking in the UK is becoming painfully more apparent. According to the NSPCCâ&#x20AC;&#x2122;s report this year, there were more than 400 children referred to the National Referral Mechanism as potential victims of trafficking. Next year Caritas Westminster will be part of an ambitious plan to find shelter, protection and a new life for these individuals and their families as it grows into its role as the diocesan social action agency.

Diocese of Westminster Annual Report & Accounts 2013

Eye Witness:

Isabella, volunteer driver Meeting Constance and the older guests in the group has brought me closer to the local community. It’s fascinating to hear stories from their lives. It makes you look at your own in a different light.

Eye Witness:

Connie, older guest I feel uplifted after going to a tea party on a Sunday afternoon. I’ve met new people and made new friends. It’s just amazing how the volunteers welcome a group of older people into their homes as their friends. It’s a marvellous feeling and I definitely recommend it to other people in my situation.

Eye Witness:

David, Older Guest The time I feel most lonely is after six o’clock at night, but when I’ve been out to a Contact tea, then I don’t feel lonely at all, just fresh memories of a lovely afternoon out with friends. It’s good getting out and meeting people and it’s fun for us to get together. It has made such a difference to my life. One of the reasons I like to go out is that it gives me the chance to dress up, whereas normally I don’t make much of an effort. It makes me feel good.

Eye Witness:

John: Volunteer group coordinator I don’t think people realise how lonely and isolated elderly people living alone feel and just a few hours one Sunday a month can make a huge difference. The gatherings are tremendous fun and I can feel excitement in the air each month when I ring around my members, hosts and drivers. I find it enjoyable because you can see immediately how, for a small offering of time, you can make a big difference to their lives. Page 11

2013 Annual Report & Accounts

Diocese of Westminster

Debt Challenge

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Diocese of Westminster Annual Report & Accounts 2013

Debt Challenge Do not be one of those who go guarantor, who go surety for debts: if you have no means of paying you will find your bed taken from under you. Proverbs 22:26-27

Context Millions of people in the UK are currently struggling under the weight of personal debt, which has reached record highs as household savings have reached historic lows, leaving millions with little financial resilience. More than 8 million households now have no savings at all, a figure which includes around 50 per cent of low-income households. The unfavourable economic climate has led to the cost of living rising, with squeezed household budgets. Welfare reforms have brought these issues into sharp relief, with many people pushed to the edge of, or over, a financial cliff and into eventual homelessness. Exacerbating this are the extent of poor personal financial understanding and management, and the pressure of easy, fast but high-interest credit from payday lenders leading individuals and families into a spiral of crippling debt. The impact of this extends far beyond monetary consequences, affecting people’s health, family stability and employment prospects.

Caritas Response The roots of debt and homelessness are varied and complex, and the Catholic Church has always been a quiet source of compassion and practical support in this challenging area. Caritas Westminster helps those struggling out of debt, those balancing the household budget or, indeed, those moving from homelessness back into secure, affordable accommodation. It has been working with credit unions, Christian money management organisations such as The Money Advice Trust and Christians Against Poverty (CAP) amongst others to explore how to support stretched communities in meeting and addressing financial hardships and obstacles in these very difficult times. The development of practical money advice and courses that reflect the Catholic ethos help people take control of their money by encouraging them to save what they can and, when affordable, take out low-cost, transparent loans from local credit unions when needs arise.

co-operative; it is not ‘us and them’. All the members of the credit union are encouraged to work together, to pool their savings to lend to one another and help run the credit union and, if possible, to volunteer for roles. This is done in a ‘not-for-profit’ way, so the cash is only used to run the service and reward the members, not to pay outside shareholders, like most other financial institutions.” To work in a credit union Anthony describes the need to be both a people person and a numbers person. He notes: “Being a ‘people person’ helps deal with members’ queries and concerns, but then there is the ‘numbers’ or spreadsheet person where we are concerned mainly to ensure that the credit union runs properly as a regulated body, like any bank or building society. I like to feel I am a bit of both, and get satisfaction from talking to people and analysing their finances, judging whether a loan is sensible both for them and for the credit union. And the work is not all smooth; you face challenges. Some people have messy financial situations, and can put their heads into the sand when the going is tough. However frustrating it is at times, you do get a sense of real achievement on occasion.” It is not only affluent parishioners who gift part of their savings by placing their money in a relatively low-return account who help. Credit unions also need an army of savers who are solvent, not necessarily high-earning savers, who also could on occasion benefit from a shortterm loan. It is this volume and variety of clients that is needed to sustain the credit union, thereby increasing its ability to offer more crisis loans, which are risky, to those who have fallen through the safety net of state provision.

The St Albans Credit Union was set up in 2002 with the backing of St Bartholomew’s, St Albans South and the drive and expertise of parishioner Antony Baker. He still serves as a volunteer director and explains: “My aim has always been to help people who struggle with good financial management to understand their finances. I think the attraction of the credit union is that it is a

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2013 Annual Report & Accounts Diocese of Westminster

The Future Caritas Westminster has a vision of encouraging support for credit unions accompanied by the development of debt and money management education and support, all in the heart of parish communities who need this most. This dual approach on one hand encourages the Catholic community to become members of their local credit union, and, on the other, opens our parish spaces and trains Catholic volunteers to run money and debt management courses. Caritas Westminster will be responding to homelessness by working with the Joseph Roundtree Foundation and other key charities from the London Funders organisation to create a network of interested charities and donors, with the aim of developing a more robust and comprehensive response to the problem. It is also creating a guide for parish priests for those times when homeless and destitute people call at their presbytery, something that is likely to increase once the key welfare reforms and council cuts take effect after April 2015. The guide will provide general advice on managing this issue sensitively and with compassion but also practical information on where to find warm food and shelter in the locality, relieving immediate distress. The project is also aware of the particular, often complex, needs of asylum seekers, migrants and their families, who have no recourse to public funds and often find themselves destitute without adequate shelter, food, money or access to work and education.

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Diocese of Westminster Annual Report & Accounts 2013

Eye Witness:

An anonymous borrower from the credit union I just wanted to say how grateful I am to everyone at the credit union for all that you do. When I first took out my loan I was up to my eyeballs in high-interest debt; only being able to make minimum payments, I was being charged hundreds of pounds every month in interest and the debt would just have escalated out of control. Since consolidating my debts with a credit union loan I now have a light at the end of the tunnel. As I only make one payment each month I am financially much better off and I now plan ahead with my money and if I can not afford it I do not have it. I will be 100% debt free by early next year and I have also been putting money into savings. You lend a valuable lifeline to people in desperate need and literally transform lives.

Eye Witness:

Helen Kennedy, St Albans District Credit Union I have been a member of St Albans District Credit Union since it was founded, during which I have saved and borrowed. There is an attitude in society that credit unions are only for the poor. In my opinion credit unions are for everyone, young and old. They are still relatively new to the UK and provide a valuable and ethical service in the community. Members are all equal and staff are mostly volunteers. Help and advice is free. I am proud to be a member, especially if we can avoid people having to use loan sharks. To volunteer you donâ&#x20AC;&#x2122;t need to be a banker or a financial wizard - we have some of those already - but you must be a team player, and it helps to be able to add up correctly, with a calculator if necessary.

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2013 Annual Report & Accounts

Diocese of Westminster

Food Poverty Page 16

Diocese of Westminster Annual Report & Accounts 2013

Food Poverty For I was hungry and you gave me food; I was thirsty and you gave me drink; I was a stranger and you made me welcome. Matthew 25:35

Context At the heart of our faith is the Eucharist, our spiritual food. Receiving this heavenly food resonates even more strongly when we see others in our affluent society, particularly children and older people, going hungry. According to the Food Ethics Council, at least four million people suffer from food poverty in the UK, a figure which undermines the UK’s commitment to ensuring that all its citizens have access to this most basic of all human rights. The reality of the UK’s cost of living crisis came under the spotlight in 2013, culminating in Britain’s biggest charity food drive since the Second World War, with the aim of collecting tons of groceries to give to hungry and hardpressed families and individuals. The exponential growth in food banks has been caused in part by unemployment, increasing levels of underemployment, low and falling income, and rising prices, leading to further imbalances and more people living on the fringes of society. Caritas is responding directly with an active faith that supports and empowers those who go without and engages with the marginalized.

Caritas Response The Borehamwood Foodbank: Based in the parish of St Teresa of the Child Jesus, Borehamwood, the food bank was launched in March 2013 and has fed over 1,200 families and individuals, giving out over 12.5 tons of food aid. It is supported by Caritas Westminster, which provided seed funding for the initial set up and now offers general ongoing support. It was also involved in raising awareness of the food bank and its needs in the locality. The food bank is an ecumenical and community endeavour that involves the parish, participating churches, other faith organisations and schools. They donate non-perishable, in-date food to the food bank in the parish centre where the food is stored. It is also collected at the local supermarket, where volunteers hand out a ‘food bank shopping list’ to shoppers asking them to buy extra items for local people in crisis. The whole collection and management is run by volunteers. Volunteers sort the food and make sure it is packed into boxes ready to be given to people in need. Care professionals in the local area such as doctors, health visitors, social workers and head teachers identify people in crisis and issue them with a food bank voucher. Those in need bring these to Borehamwood Foodbank, where it can be redeemed for three days’ emergency food.

Borehamwood also has volunteers who meet clients over a cup of tea or meal to signpost them to agencies who can help them to solve longer-term problems. There is also a delivery service at Borehamwood taking emergency food boxes to clients living in rural areas who cannot afford to get to the food bank. There are times when the donations go up, such as at Christmas, Easter and Harvest Festival, when additional hampers and presents are handed out to clients for whom family and food celebrations are important but costly. School Lunches: Recently, Borehamwood parish has started running family lunches during school holidays in response to the realisation that those children who receive free school meals during term time were probably not getting the same nourishment during the holidays. This is a chance for the whole family to come and eat with other families in a welcoming relaxed space where they are given an additional bag of provisions and any remaining food to take home. Through the year the number of families attending has increased from 12 to more than 20. Caritas Westminster is now in discussion with a local children’s centre and also a community centre, where it hopes to reach more families and older people struggling to make ends meet. It is also applying for a local community grant to develop this service. Magic Breakfasts: Food aid also works in primary schools in the diocese. Caritas Westminster has been working in partnership with the free healthy breakfast programme delivered by national charity Magic Breakfast. It has extended its reach into five diocesan primary schools, encouraging more pupils to attend and expanding food provision beyond the start of the day to first lesson feeding for late pupils and bagels at break-time. Groundwork has also been laid to move to the second stage of the programme, that of parental and pupil nutritional education, to create a routine of regular, healthy eating habits beyond the school gates. This will, for example, take the form of assemblies inviting healthy-eating role models, parental information gatherings and cookery classes. Concrete improvements in attendance, punctuality, performance, behaviour and social skills have been the hallmarks of this joint Caritas Westminster – Magic Breakfast initiative.

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Diocese of Westminster

The Future Since Borehamwood Foodbank launched, Caritas Westminster has been sharing expertise and spreading best practice amongst interested parish communities to support the development of three further food banks in Bow, East Finchley and St Albans expected to launch in early 2014. Caritas Westminster is exploring the models of diverse food aid responses, such as the FoodCycle dinner clubs and FareShare distribution of surplus retail food to charities alleviating poverty and social exclusion. It aims to involve parish communities in implementing these better, more fitting approaches to providing food aid in the local community.

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This is all in addition to other diocesan food aid initiatives such as soup kitchens, sandwich runs, lunch and suppers for vulnerable people and night shelters. In 2014 Caritas Westminster intends to host a roundtable on food poverty and our diocesan response, with a view to pooling resources and expertise not only to enhance the current provision but also to increase the reach of food aid for those in need in our diocese.

Foodbank caption in here somewhere Foodbank caption in here somewhere

Diocese of Westminster Annual Report & Accounts 2013

Eye Witness:

‘Changes to my ESA left me with no money for food’ Edna, almost 60, was referred to the food bank by a cancer charity after her Employment Support Allowance (ESA) was replaced by Job Seeker’s Allowance. Despite having undergone serious surgery for cancer last year and suffering from arthritis and depression following the recent death of her brother, Edna was told she was fit for work. She has been applying for jobs with little success and feels that her age has reduced her employability. She is also concerned that she would not be able to physically cope with a job and is appealing the decision; but this is expected to take weeks. Edna lives alone and has sold her TV, a main source of company for her, to help put food on the table and has been eating plain pasta or couscous as it’s all she can afford. She contacted the food bank with just £8 left to last her five days.

Eye Witness:

A positive, calm start to the school day Sam is a 10-year-old boy in his last year of primary school. He is the youngest of three. He has a complex social background. His father has been in prison for most of Sam’s young life and his mother has been very ill with cancer. Sam and his older brother and sister struggle to cope with managing the home, their mother’s care and their own needs. His school attendance is cause for concern at only 75%. Sadly, Sam’s mother died in March. The school has been able to offer Sam a free breakfast every day through the national charity, Magic Breakfast. After breakfast, Sam engages in creative activities, board games and sports. Sam particularly enjoys playing Monopoly with his friends. Breakfast Club is an important time for him to interact with his friends and have a positive, calm start to the school day.

Raising awareness (top left) and (left) collecting donations for the Borehamwood Foodbank Page 19

2013 Annual Report & Accounts

Diocese of Westminster

St John Parish Vianney Profile Parish Page 20

Diocese of Westminster Annual Report & Accounts 2013

St John Vianney Parish, West Green Founded in 1927, St John Vianney is a vibrant parish in West Green, serving a diverse and active community. Many different nationalities present every week at Mass reflect the multi-cultural character of London. At the heart of parish life is the daily gathering around the altar to listen to God’s word and encounter the Risen Lord in the Eucharist. Nourished by this Sacrament in their human and spiritual journey, the faithful reach out to their neighbours in need in many ways. Parish Priest Fr Joe Ryan explains: ‘One of the best-kept ‘secrets’ in the Catholic Church is its enduring teaching on social justice, based on Gospel values that have been presented in many encyclicals and exhortations by several Popes. ‘We are simply doing here what many other parish communities are doing throughout the diocese, responding to Fr Joe Ryan the needs on our doorstep. There are homeless, sick and hungry people; there are “strangers” and asylum seekers; and the face of Christ in many other disguises.’

A community that cares The parish hosts the Haringey Migrant Support Centre, formed as a result of concern from the local community about the lack of support some immigrants in their midst were receiving. The Centre uses an office provided by the parish and operates every Monday to provide support, including a social lunch, to families and individuals who are seeking help. This ranges from advice on immigration and personal welfare problems to accessing health services. ‘Clients also have the opportunity to receive and to offer companionship and feel that they are part of a community which cares,’ says Fr Joe.

The Live Simply Group Also located within the parish boundaries in the premises of the former St Augustine’s church, London Catholic Worker offers similar support on a daily basis. Having as its mission the corporal works of mercy and supported by West Green parish, the community provides food, shelter and advice to people who are undocumented and who can therefore easily fall through the social care net and be vulnerable to exploitation.

Reflecting the face of Christ The parish also provides practical support to the many in their midst who face hunger. A meal voucher scheme operates through an arrangement with a local café, which provides meals in exchange for which the parish pays. In addition to this, for over 30 years, the parish has been operating a soup, tea and sandwich run to feed the homeless and hungry in the inner city. As Fr Joe explains, ‘Jesus says, “I was hungry, thirsty, naked, a stranger and you came to my help”. This is part of what social justice is about, identifying and caring for those in our midst and restoring to them the dignity of reflecting the face of Christ.’

A view of the church in 1951 when it was a Nissen hut. Right: The present church building, opened by Cardinal Godfrey in 1959. Page 21

2013 Annual Report & Accounts

Diocese of Westminster

Income and expenditure Parish Income (total)

Curial Income (total)

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

2013 Total

2012 Total

£37,533,000

£34,249,000

Parish Expenditure (total)

5,000,000

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

Page 22

2012 Total

£11,525,000

£10,911,000

Curial Expenditure (total)

35,000,000

5,000,000

2013 Total

2012 Total

£30,921,000

£28,650,000

5,000,000

2013 Total

2012 Total

£11,148,000

£10,072,000

Diocese of Westminster Annual Report & Accounts 2013

Income Parishes Income £’000 Collections, donations and legacies Parish activities

10,000

5,825 5,570 1,683 1,875 1,142 1,066

Rents

Disposal of assets

30,000

28,242 25,071

Investment income

Trading

20,000

639 666 2 1

Parish and Curia Income Commentary Overall income increased by £6.5m in 2013, with £1.8m of this being increased donations in parishes, £1m from increased use of our parish centres and £3.7m increase from the Growing in Faith Campaign roll out within the Diocese.

2013 2012

Page 23

2013 Annual Report & Accounts

Diocese of Westminster

Income Curia Income ÂŁâ&#x20AC;&#x2122;000

1,000

Diocesan assessment

5,042 4,828

Income from charitable resources

1,546 1,777

Donations, legacies

2,794 3,041

Investment income

1,323 648

Rental income

722 467

Assessments

2,000

3,000,

4,000

5,000

6,000

98 150

2013 2012

Page 24

Diocese of Westminster Annual Report & Accounts 2013

Expenditure Parishes Expenditure £’000

1,000

Non clergy stipends and housekeeping

5,781 5,476

Assessment

5,042 4,828

Property repairs

3,855 3,096

Council Tax and utilities

3,083 2,904

Depreciation

2,718 2,591

Clergy stipends

1,977 1,891

Parish activities and centres

1,652 1,379

Liturgical

1,563 1,639

Candles and repository

1,028 1,061

Office and administration

1,102 1,018

Donations, grants

1,069 766

Costs of generating income

482 512

Miscellaneous expenses

422 308

Other

380 379

Catechetics

366 376

Supply priests

353 362

Interest

48 59

2,000

3,000,

4,000

5,000

6,000

Parish and Curia Expenditure Commentary Parish expenditure increased by £2m in 2013. Of this, £2m was due to continuing investment in property repair and renewal, whilst the balance was the result of inflationary pressures on non-clergy salaries, housekeeping and utility costs. Curial expenditure increased by £1m, which is due to enabling works at the new SPEC Centre and inflationary pressures.

2013 2012

Page 25

2013 Annual Report & Accounts

Diocese of Westminster

Expenditure Curia Expenditure £’000

500

Pastoral and related work

4,543 4,089

Administration

2,445 1,833

Education and formation

1,293 1,290

Auxiliaries,Tribunal and Vicar General

859 863

Department of Clergy and Consecrated Life

744 821

Archbishop’s Office

408 373

National Bodies

347 346

Public affairs and communications

1,000

1,500

2,000

2,500

3,000,

3,500

4,000

4,500

5,000

166 173

Other

187 187

Expenditure Overview In May 2013 the Centre for Youth Ministry was opened in Somers Town. The group as already built and supported 20 youth groups in various parishes and introduced support structure to 12 youth workers. SPEC continued to provide a wonderful range of retreats to the young people of the Diocese, and ahead of their move to Pinner, throughout 2013. During the year 7,924 individuals attended these retreats. The administration of the Diocese is carried out by the central service teams. The property team manages the properties held centrally by the Diocese and all its related charities. It advises and actively works with parishes and schools in the maintenance and development of their property. The ICT team manages all communications hardware and software across the Diocese. The finance team processes all financial transactions for the Curia, central services and related charities. Additionally, it exercised supervision over 212 school construction projects and reclaimed gift aid in excess of £2.2 million in respect of over 30,000 donors. It also provides advice and support to improve financial management in the parishes, conducting 60 compliance audits of parishes.

Page 26

During 2013 the Diocese spent £1.4M on the Growing in Faith Campaign. The Education Service from September 2013 to April 2014 provided 57 training and information courses attended by 2,388 people. Over the same period we have appointed 128 lay governors and 13 clergy to our schools. There have been 84 meetings with Local Authorities and designated interest groups on strategic building planning and costing. The Chancery office processed 1,943 marriage applications and dispensations, of which 916 were overseas. It also provided 826 RCIA applications.

2013 2012

Diocese of Westminster Annual Report & Accounts 2013

Westminster Roman Catholic Diocesan Trust

2013 Annual Report and Accounts

Page 27

2013 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2013

Introduction 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 2013. The accounts are presented in accordance with the accounting policies set out on pages 41 to 43 of the attached accounts and comply with the Charity’s trust deed, applicable laws, United Kingdom Generally Accepted Accounting Practice and the requirements of Statement of Recommended Practice, “Accounting and Reporting by Charities” issued in March 2005.

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.

Scope of the consolidated accounts The consolidated accounts include the assets, liabilities and transactions of the following:

Curial funds The 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 the Westminster Cathedral complex.

Parochial funds The 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.

Page 28

Westminster Cathedral Limited A wholly owned subsidiary trading company carrying out general trading activities which relate to Westminster Cathedral and whose object is to generate profit for the benefit of the Cathedral.

Other registered charities Other registered charities, which are integral to the Charity and which therefore have been included in these accounts are: • The Moorfields Charity (Charity Registration No 247198) - a charity providing assistance to the Roman Catholic parishes of Moorfields and Bunhill Row and to Westminster Cathedral. • Westminster Cathedral Trust (Charity Registration No 270637) – a charity with the principal objectives of supporting Westminster Cathedral and preserving its fabric and music.

School properties The Charity is the legal owner of nearly 200 properties comprising voluntary aided schools 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 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. 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.

Diocese of Westminster Annual Report & Accounts 2013

Report of the Directors of the Corporate Trustee – Year to 31 December 2013

Trustees

Statement of Trustees responsibilities

The Trustees i.e. the Directors of the Corporate Trustee are appointed by the Archbishop of Westminster. The Trustees who were in office at the date of this report and those who served during the year ended 31 December 2013 were as follows: Appointed/Resigned His Eminence Cardinal V Nichols Rt Rev J Arnold (1,2,4,5) Rt Rev J Sherrington (1,7) Rt Rev Mgr T Egan (1,3) Rt Rev Mgr M Hayes (1)

Appointed 14 March 2014

Rt Rev Mgr J O’Boyle Lord D Brennan QC Miss L Ferrar (2,6) Rt Hon R Kelly Mr C Kemball Mr D Moseley (4) Committee member of: 1) Finance Board 2) Audit Committee 3) Investment Committee 4) Human Resources Subcommittee 5) Property Subcommittee 6) Pension Board 7) Schools Commission

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 dayto-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.

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. 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.

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 of the Charity and its subsidiaries, and of the incoming resources and application of resources of the Charity and its subsidiaries for that period. In preparing these accounts, the Trustees are required to: • select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Statement of Recommended Practice (Accounting and Reporting by Charities) (the Charities’ SORP); • 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 • 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 Charity (Accounts and Reports) Regulations 2008 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. 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 29

2013 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2013

Organisation 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 quorum of Trustees, deals with the day to day business affairs of the Diocese. Additionally, the Audit Committee, the membership of which includes two Trustees and an independent member (Mr K Ingram a chartered accountant and former audit partner of PricewaterhouseCoopers) monitors the integrity of the accounts and reviews the Charity’s internal financial controls. 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.

Administrative and advisory bodies As required by Canon Law, a Diocesan Finance Committee (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. 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 eighteen senior priests constitute the Chapter of Canons and are consulted by the Archbishop on important Diocesan matters (cf Canon 503ff ). They have also been constituted as “The College of Consulters” to fulfil the legal requirements of Canon 495ff.

Page 30

Risk management Whilst risk management can limit it does not eliminate risk. The Trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the Charity, they have established effective systems to mitigate risks. To improve on risk management, in 2013 the Trustees have implemented additional programmes. One programme was to roll out a mandatory Health and Safety monitoring scheme to the parishes. The second programme to increase the frequency and rigour of the standard of parish financial audits. In 2013, 60 parishes were audited with the new audit programmes. Furthermore, the Trustees have developed a risk register which will be used as a management tool in 2014.

Connected charities The main charities connected with the Charity are listed below. All the charities listed are the responsibility of the Corporate Trustee but are outside the scope of these accounts as they are separate registered charities and are not controlled by the Charity. In many cases they are administered by the Central Finance Office of the Charity and many have similar or related charitable objectives. • 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 Diocesan collection. • Diocese of Westminster Sick and Retired Priests Fund (Charity Registration No 278136) This charity’s principal activity is the provision of assistance to sick and elderly and retired clergy. • Norfolk Fund Charity (Charity Registration No 241675) The Norfolk Fund Charity is a charity with the principal objective of fulfilling the social and pastoral works of the Diocese. A full list of all connected charities is given in note 20 to the attached accounts.

Diocese of Westminster Annual Report & Accounts 2013

Report of the Directors of the Corporate Trustee – Year to 31 December 2013

Investment Policy Introduction The investment guidelines are set by the Trustees. The Investment Committee implements and reviews the guidelines. 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: 31.3% in UK equities, 2.3% in alternative investments; 47% in overseas equities; 9.8% in fixed interest and 9.6% in liquid assets. The overall long term objective is to manage the portfolio on a total return basis. The Trustees regularly review information from the investment managers, monitoring performance of the portfolio and the investment strategy. The Trustees are satisfied with the performance of investments during the year following the volatility in global financial markets, and remain confident that their medium term investment policy is being achieved. The Investment Committee reviews the choice of investment managers every three years.

Socially Responsible Investment Policy The Catholic Church’s understanding of socially responsible investment is drawn from a series of “social encyclicals” which followed 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. 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 group. 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 2013 the implementation of the Social Responsible Investment or ethical policy has reduced the CCLA returns by -1.1% and increased the returns of the funds invested in Sarasin and Partners LLP by +0.6%. Additionally, the

annual audit of the investments has highlighted that 0.09% of the investments held within the portfolio are in potential contradiction to its policy. The Trustees are continuously working to examine the underlying assets and rectify where it is possible. Additionally this year, through Church Investment Group and through one of the Charity’s investment managers, CCLA, the Trustees engaged with a number of telecommunications companies to ensure that they are protecting children from accessing inappropriate material by restricting access to adult content, such as pornography, by default. Following engagement, one company took the further step of ceasing to promote the retail of pornographic material, classified as being suitable only for adult viewers, in the UK market. Furthermore, the Trustees, through this partnership, are encouraging FTSE350 constituent companies who operate in carbon intensive sectors, or any FTSE100 constituent that could be considered to be laggards in comparison to their peers, to report their greenhouse gas emissions to the Carbon Disclosure Project (CDP) and to adopt emissions reduction measures. The program resulted in a 72% improvement in the performance of the 53 companies targeted and academic assessment of the initiative showed, with a 90% confidence rate, that the engagement was responsible for the improvement amongst FTSE350 companies. These are just some of the examples on how the Social Responsible Investment policy is being put into place.

Objectives and activities 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 Roman 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’. Additionally, the Catholic Church has a large body of teaching, its ‘social doctrine’, which presents a rounded understanding of the human person and of the importance of solidarity. One of the doctrine’s focus 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’. Within its overall objective, one of the aims of the Charity includes the fulfilment of social teaching.

Page 31

2013 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2013

Activities The principal ways in which these objectives are fulfilled are by the provision of religious and pastoral services, education and implementation of social teaching.

The provision of religious and pastoral services The Diocese has 214 parishes, and religion is advanced through providing places of worship and facilitating religious practice. These include providing and maintaining buildings used for religious practice, conducting religious ceremonies (such as weddings and funerals), maintaining religious burial grounds, saying masses that are open to the public, 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 many of these churches are open to all 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 weekly mass attendance in the Diocese was over 150,000, the number of parish churches and others open to the public was 214, there were over 1,000 marriages, 3,000 funerals, 10,000 baptisms/receptions and 8,000 first communions during the year. In our parish communities we have a very wide diversity of culture and nationalities (in one parish there are approximately 100 nationalities). But every parish community strives to achieve a racial and cultural harmonisation and integration. In this we believe the Church is leading the way in promoting cohesion in our cosmopolitan society.

The provision of Catholic education Within the diocese there are 213 schools, 156 of which are primary, 40 secondary, and 17 independent. In 2013, two multi academies were created, comprising both primary and secondary schools. The Charity provides the land and buildings through which these schools operate. Throughout the Diocese, the schools aim to provide a first class education to 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 academic curriculum, pastoral care, sporting and other activities. It also contributes to providing an educational environment where each student can develop and fulfil his or her potential, building their self-confidence and inculcating a desire to contribute to the wider community. This all prepares the pupils for the opportunities, responsibilities and experiences of later life.

Page 32

The provision and maintenance of churches, presbyteries and schools The objectives are achieved principally through the parishes and Catholic schools together with a large number of Catholic societies and organisations also based in the Diocese. Additionally, there are numerous other pastoral activities, the more important of which are referred to below. We try to enable ordinary people to live out their faith as part of the parish and diocesan communities through worship and prayer, and learning about the Gospel, the provision of pastoral care for people living within and outside the Diocese and missionary and outreach work. To facilitate this work it is important that we maintain the fabric of our churches and related properties, support clergy in their active and retired ministries, and provide funds for training new priests and deacons, catechists and lay ministers. Through the provision of diocesan school properties we aim to contribute towards the provision of a first class education to boys and girls from the ages of 4 to 18 in a Catholic Christian environment. In addition, we seek to provide services for young people that will enable them to live and explore their faith.

The provision to the poor and marginalised Within its overall objective, one of the Charity’s fundamental aims is the fulfilment of its social teaching in the pursuit of the Common Good. In recent years the Trustees have set up a new department, CARITAS, to help achieve this aim. While there is so much work to be done in this area, the Trustees have identified seven key areas of focus: 1) Supporting people who find themselves in food poverty and debt; 2) Supporting lonely, isolated and vulnerable people; 3) Supporting the Catholic deaf community; 4) Supporting people with intellectual disabilities and their families; 5) Supporting young people at risk of social exclusion; 6) Supporting victims of human trafficking; and 7) Supporting people who are homeless. When setting the aims of the Charity and planning the work of the Charity for the year, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary guidance on the advancement of religion, relieving poverty and advancing education.

Diocese of Westminster Annual Report & Accounts 2013

Report of the Directors of the Corporate Trustee – Year to 31 December 2013

Financial Review

Financial position

Financial results The table set out below summarises the financial activities of the Diocese. 2013 £m

2012 £m

Parishes Income Expenditure Surplus before assessment Diocesan assessment and other transfers Surplus Investment and revaluation gains Added to reserves

37.5 (25.9) 11.6 (5.0)

34.2 (23.8) 10.4 (4.8)

6.6 3.2 9.8

5.6 1.4 7.0

5.0 6.5 11.5 (11.1) 0.4 3.5

4.8 6.1 10.9 (10.1) 0.8 0.6

3.9

1.4

Curial Diocesan assessment Other income Total income Expenditure Surplus Investment and revaluation (losses) gains Added to reserves

Complete details of the income and expenditure are shown in the consolidated statement of financial activities and in the notes to the accounts. Please note that the above numbers include income and expenditure of the fundraising programme called Growing in Faith. This includes restricted income of the parishes of £1.5 million in 2013 and restricted income of the Curia of £2.2 million in 2013 and £1.8 million in 2012. The programme incurred expenditure of £1.4 million in 2013 and £1.0 million in 2012 which is shown in the Curia.

Parochial reserves at 31 December 2013 total £128.7 million (2012 - £118.9 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. Curial reserves at 31 December 2013 amount to £42.1 million (2012 – £38.2 million). Of this, £13.7 million (2012 - £10.7 million) represents the balance on restricted items which is not available for general purposes. Unrestricted funds amounted to £28.4 million (2012 - £27.5 million). Of this £17.3 million (2012 - £17.1 million) is a tangible fixed assets fund and a further £1.9 million (2012 - £1.9 million) has been set aside for specific purposes leaving general funds of £9.2 million (2012 - £8.5 million) after the pension reserve deficit of £1.2 million (2012 - £2.4 million) for the general purposes of the Charity. This reflects an increase of £0.7 million in general funds compared to 2012 and is equivalent to approximately 10 (2012 – 11) months of future budgeted unrestricted expenditure. The trustees acknowledge that the level of general funds at 31 December 2013 falls slightly below that stated in the Charity’s reserves policy. A significant contributor to this shortfall continues to be the actuarial loss on the defined benefit pension scheme as a result of the stock market volatility and other economic and demographic factors. As explained above, the Trustees accept the need for some flexibility in the reserves policy to accommodate times when there is global financial instability. Consequently, the Trustees continue to believe that free reserves are adequate but not excessive but will continue to monitor the position closely.

Reserves policy 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.

Page 33

2013 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2013

The Charity’s assets Acquisitions and disposals of fixed assets during the year are recorded in the notes to the accounts.

Plans for future periods The Charity will continue to build on the work of the past year towards its focus on the common good. To help finance the described initiatives and to help finance future needs the Trustees have been leading a fundraising programme called Growing in Faith. The programme has been running for the last two years. By its conclusion in December 2014 almost all parishes will have participated. Besides raising funds, the campaign hopes to communicate to every parishioner on the priorities for the future which are: a) vibrant and sustainable parishes b) sustainable priesthood c) helping the poor and marginalised. At the date of writing this report the campaign has received over £33 million of gifts and pledges from over 16,000 households, of which £8.5 million has already been received. The cost to date of this campaign has been £2.5 million, which is being funded from the general reserves. Signed on behalf of the Trustees: Trustees Approved by the board on:

Page 34

Diocese of Westminster Annual Report & Accounts 2013

Independent Auditor’s Report – 31 December 2013

Independent auditor’s report to the Directors of The Westminster Roman Catholic Diocese Trustee We have audited the accounts of the Westminster Roman Catholic Diocesan Trust for the year ended 31 December 2013, which comprise the consolidated statement of financial activities, the consolidated and parent charity balance sheets, the consolidated cash flow statement, 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). 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.

Respective responsibilities of Trustees and auditor As explained more fully in the statement of the 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. 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.

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 financial statements 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 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.

Opinion on the accounts In our opinion the accounts:

• give a true and fair view of the state of the group and charity’s affairs as at 31 December 2013 and of the group’s incoming resources and application of resources for the year then ended; • 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 • 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.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 23 September 2014

Page 35

2013 Annual Report & Accounts

Diocese of Westminster

Consolidated statement of financial activities – Year to 31 December 2013

Curial funds Unrestricted Restricted funds funds £’000 £’000 Notes

Total funds £’000

Parochial funds Restricted funds £’000

Total 2013 £’000

Total 2012 £’000

Incoming resources Incoming resources from generated funds . Voluntary income .. Collections, donations and legacies

450

2,344

2,794

28,242

31,036

28,112

.. Assessments

–

150

. Activities for generating funds .. Commercial trading operations

–

639

666

. Investment income and interest receivable

1,155

168

1,323

1,683

3,006

2,523

722

–

722

1,142

1,864

1,533

1,038

322

1,360

5,825

7,185

7,108

186

–

186

–

186

239

. Rental income from functional properties Incoming resources from charitable activities

. Parish and similar activities . Pastoral Centre Other income . Net gains on disposal of tangible assets Total incoming resources

–

3,649

2,834

6,483

37,533

44,016

40,332

Resources expended Cost of generating funds . Fundraising trading: cost of goods sold and other costs

. Investment manager’s fees

–

482

512

–

10,316

676

10,992

25,389

36,381

33,280

Charitable activities . Advancement of the Roman Catholic faith primarily in the Diocese of Westminster

136

–

136

144

10,452

696

11,148

25,879

37,027

33,894

(6,803)

2,138

(4,665)

11,654

6,989

6,438

5,113

(71)

5,042

(5,042)

–

(1,690)

2,067

377

6,612

6,989

6,438

. Actuarial gains (losses)

1,023

–

1,023

–

1,023

(609)

. Net investment gains

1,572

893

2,465

3,205

5,670

2,577

905

2,960

3,865

9,817

13,682

8,406

Governance costs

Total resources expended Net (outgoing) incoming resources before transfers Transfers between funds Net (outgoing) incoming resources before other recognised gains and losses Other recognised gains and losses

Net movement in funds Reconciliation of funds . Balances brought forward at 1 January 2013

27,480

10,724

38,204

118,879

157,083

148,677

. Balances carried forward at 31 December 2013

28,385

13,684

42,069

128,696

170,765

157,083

Page 36

Diocese of Westminster Annual Report & Accounts 2013

Consolidated statement of total recognised gains and losses – Year to 31 December 2013

Historical cost net movement in funds

Net movement in funds (page 36) Net investment gains arising from changes in the value of the investment portfolio Gain calculated by reference to the historic cost of investments disposed of during the year Actuarial (gains)/losses Historical cost net movement in funds

2013 £’000 13,682

2012 £’000 8,406

(5,670)

(2,577)

(638)

(399)

(1,023)

609

6,351

6,039

No figures are available for the historical cost of functional property and therefore it is not possible to calculate the historical cost depreciation charge. However, functional property has been included in the accounts at a valuation which approximates to original cost less depreciation. The Trustees are of the opinion, therefore, that there is no material difference between the historical cost depreciation charge and the actual depreciation charge calculated on the revalued amounts.

Continuing activities All of the Group’s activities derived from continuing operations during the above two financial periods with the exception of All Saints Pastoral Centre which ceased operation in December 2011. Further details are given in note 5.

Total recognised gains and losses All recognised gains and losses are included in the consolidated statement of financial activities.

Page 37

2013 Annual Report & Accounts

Diocese of Westminster

Consolidated balance sheet – 31 December 2013

Notes

Curial £’000

Parochial £’000

Total 2013 £’000

Total 2012 £’000

Tangible assets

17,307

73,084

90,391

86,902

Investments

20,700

31,496

52,196

47,102

38,007

104,580

142,587

134,004

Fixed assets

Current assets Stocks Debtors

–

8,164

692

8,856

6,777

6,682

23,700

30,382

30,225

14,846

24,454

39,300

37,067

(8,764)

(1,171)

(9,935)

(11,556)

Net current assets before adjustment for inter-fund indebtedness

6,082

23,283

29,365

25,511

Elimination of inter-fund indebtedness

(833)

833

–

Net current assets

5,249

24,116

29,365

25,511 159,515

Cash at bank and in hand

Creditors: amounts falling due within one year

Total net assets excluding pension liability

43,256

128,696

171,952

(1,187)

–

(1,187)

(2,432)

42,069

128,696

170,765

157,083

13,684

128,696

142,380

129,603

. Designated funds

1,902

–

1,902

1,899

. Tangible fixed assets fund

17,307

–

17,307

17,099

10,363

–

10,363

10,914

(1,187)

–

(1,187)

(2,432)

9,176

–

9,176

8,482

42,069

128,696

170,765

157,083

Pension liability

Total net assets including pension liability Represented by: Funds and reserves Restricted funds Unrestricted funds

. General funds .. Free reserves .. Pension reserve

Approved by the Trustees and signed on their behalf by:

Trustee Approved on:

Page 38

Diocese of Westminster Annual Report & Accounts 2013

Charity balance sheet – 31 December 2013

Notes

Total 2013 £’000

Total 2012 £’000

Tangible assets

90,307

86,803

Investments

46,489

42,090

136,796

128,893

Fixed assets

Current assets Debtors

Cash at bank and in hand

Creditors: amounts falling due within one year

Net current assets Total net assets excluding pension liability

8,908

6,852

28,742

27,816

37,650

34,668

(9,865)

(11,362)

27,785

23,306

164,581

152,199

(1,187)

(2,432)

163,394

149,767

135,008

122,287

. Designated funds

1,902

1,899

. Tangible fixed assets fund

17,307

17,099

10,364

10,914

(1,187)

(2,432)

9,177

8,482

163,394

149,767

Pension liability

Total net assets including pension liability Represented by: Funds and reserves Restricted funds Unrestricted funds

. General funds .. Free reserves .. Pension reserve

Approved by the Trustees and signed on their behalf by:

Trustee Approved on:

Page 39

2013 Annual Report & Accounts

Diocese of Westminster

Consolidated cash flow statement – Year to 31 December 2013

Cash inflow from operating activities

Notes A

Total 2013 £’000

Total 2012 £’000

3,192

10,972

Returns on investments

3,010

2,417

Capital expenditure and financial investment

(6,010)

(6,884)

Increase in cash

192

6,505

Notes to the cash flow statement for the year to 31 December 2013. A

Adjustment of net incoming resources before transfers to net cash inflow from operating activities Total 2013 £’000

Total 2012 £’000

Net incoming resources before transfers

6,989

6,438

Depreciation charge

3,133

2,896

(3,006)

(2,523)

Investment income and interest receivable Gain on disposal of tangible fixed assets

(2)

–

Pension cost less contributions payable

(222)

(287)

Decrease in stocks

Increase in debtors

(2,082)

(56)

(Decrease) increase in creditors

(1,621)

4,501

3,192

10,972

Total 2013 £’000

Total 2012 £’000

3,010

2,417

Net cash inflow from operating activities

Gross cash flows

Returns on investments Investment income and interest received Capital expenditure and financial investment 8

—

(6,628)

(7,880)

Receipts from disposal of investments

650

1,300

Payments to acquire investments

(40)

(304)

(6,010)

(6,884)

At 1 January 2013 £’000 30,225

Cash flows £’000 157

Receipts from disposal of tangible fixed assets Payments to acquire tangible fixed assets

Analysis of changes in net funds

Cash at bank and in hand Cash held by investment manager for reinvestment

Page 40

At 31 December 2013 £’000 30,382

490

525

30,715

192

30,907

Diocese of Westminster Annual Report & Accounts 2013

Principal accounting policies â&#x20AC;&#x201C; 31 December 2013

Basis of accounting The accounts have been prepared under the historical cost convention, as modified by the inclusion of investment properties and listed investments at market value, and the inclusion of functional properties at a valuation which approximates to their original cost less depreciation. Applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice on Accounting and Reporting by Charities (SORP 2005) issued by the Charity Commission in March 2005, have been followed in the preparation of these accounts.

Basis of consolidation and scope of the accounts 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 trading subsidiary are clearly shown in the consolidated statement of financial activities and supporting notes. The accounts also include the net assets and transactions of other charities under the control of the Directors of the Corporate Trustee which affect the Westminster Roman Catholic Diocesan Trust. The charities have been incorporated into the accounts as special trusts (or restricted funds). The accounts do not include the results and net assets of connected entities (note 20). The accounts of the Investment Fund (the Mutual Investment Fund) controlled by the Westminster Roman Catholic Diocese Trustee have not been consolidated. However, the income distributed during the year from the Mutual Investment Fund to the Charity is included in incoming resources in the statement of financial activities, and the units allocated to the Charity are included in the balance sheet as investments. Further details of the Mutual Investment Fund are given in note 12.

Incoming resources Incoming resources are recognised in the period in which the Charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when the Charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Assets donated to the Charity for its own use are included as part of incoming resources in the year of the gift. Assets falling within the definition of tangible fixed assets are capitalised on the Charityâ&#x20AC;&#x2122;s balance sheet and depreciated in accordance with the appropriate policy. Other assets are treated as resources expended in the year of the gift. Legacies are credited to the statement of financial activities once the Charity has been advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

Resources expended Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT which cannot be recovered. Resources expended comprise the following: a. The costs of generating funds comprise the costs of the subsidiary company in connection with its commercial trading operations. b. The cost of charitable activities comprises expenditure on the Charityâ&#x20AC;&#x2122;s primary charitable purposes and includes staff costs and other direct overheads attributable to those purposes. c. Governance costs include costs which are directly attributable to the legal procedures necessary for compliance with statutory requirements. Charitable donations in support of Catholic foundations and projects are included in the statement of financial activities in the year in which they are approved. If charitable donations approved during the year have not been paid, in part or in full, by the end of the year, they are included as creditors in the balance sheet. Future charitable donations that are to be applied towards activities in later years are awarded subject to the availability of funds and are not accrued for.

Functional freehold property Functional freehold properties, comprising the Cathedral, churches, presbyteries, halls and similar buildings owned by the Charity prior to 1997, are included in the balance sheet at an estimate of their original cost. 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. 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 Charity at their estimated market value at the date of the gift. Page 41

2013 Annual Report & Accounts

Diocese of Westminster

Principal accounting policies – 31 December 2013

No value is included in the accounts for freehold land. Freehold buildings are depreciated at rates calculated to write off their estimated historic cost, on a straight line basis, as follows: • Listed properties - 200 to 300 years • Other properties - 100 years The Trustees regularly review the condition and net book values of all properties to ensure that the depreciation policies adopted are and remain appropriate. Disposals of freehold property are accounted for on completion.

Voluntary aided and grant maintained schools Land and buildings legally owned by the Charity and occupied rent free by Catholic voluntary aided schools, 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. The school governors are responsible for the buildings and for the repair and refurbishments costs thereof and accounting for any grants received in respect of these costs. The Charity assists school governors in managing projects and makes grants via the Curial office to assist the governors with their liability for school building and repair costs. The Charity administers these monies as managing agent and makes the appropriate payments to contractors for work carried out. Any monies due to the Charity, or held by the Charity on behalf of schools, at the balance sheet date are treated as debtors or creditors respectively on the balance sheet. Details of the Diocesan voluntary aided schools are given in the Diocesan Year Book and on the Diocesan website.

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: • Office equipment - 20% • Fixture 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 Roman Catholic faith, have very long lives and are worth preserving indefinitely.

Motor vehicles 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.

Investments Listed investments are included on the balance sheet at their market value at the end of the financial period. It is the Charity’s policy to keep valuations up to date so that when investments are disposed of all gains or losses will already have been accounted for and none will be attributable to the disposal itself. As a result, the statement of financial activities includes those unrealised gains and losses arising from the revaluation of the investment portfolio throughout the year. Disclosure is made in the note of the historical cost net movement in funds of the difference between the historical cost and the disposal proceeds of the investments disposed of during the year. Investment properties are included in the balance sheet at the Trustees’ best estimate of market value with advice from a professional valuer. All changes in value during the year are classified as unrealised gains or losses and are reported in the statement of financial activities. Details of the dates and basis of the valuations are given in note 12 to the accounts. As these assets are recorded at their current market value no charge for depreciation is made in the accounts. Disposals of investment properties are accounted for on completion. Investments in subsidiary companies are included on the balance sheet at cost.

Page 42

Diocese of Westminster Annual Report & Accounts 2013

Principal accounting policies – 31 December 2013

Stocks Stocks of miscellaneous items are valued at the lower of cost and net realisable value.

Fund accounting The Curial Funds

The Curial Funds can be used across the whole of the Diocese and are subdivided between: • The general fund 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. • The designated funds being monies set aside out of general funds and designated for specific purposes by the Directors of the Corporate Trustee. • The restricted funds being monies received for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

The Parochial 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.

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. 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 in recognised gains and losses for the period. The charity also contributes to a defined contribution scheme providing benefits based upon the value at retirements of the fund of each member. Contributions towards employees’ personal pension schemes are charged to the statement of financial activities in the year in which they become payable. Page 43

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

Collections, donations and legacies Collections, donations and legacies in the year amounted to £31,036,000 (2012 - £28,112,000). Included in this figure are legacies of £3,238,000 (2012 - £625,000), £3,209,000 of which are restricted for application within parishes (2012 - £621,000).

Assessments Ten parishes operated by specific religious congregations are not consolidated into these accounts. Income from assessments represents monies received by the Charity from those parishes.

Commercial trading operations and investment in trading subsidiary At 31 December 2013 the Charity owned the entire called up ordinary share capital of the following company:

Company

Country of incorporation

Principal activity

Westminster Cathedral Limited

England

Miscellaneous trading activities

Audited accounts of the company will be filed with the Registrar of Companies. A summary of the trading results of Westminster Cathedral Limited is given below.

Turnover

2013 £’000 639

2012 £’000 666

Cost of sales

(302)

(331)

Gross profit

337

335

(180)

(181)

Administrative expenses Profit on ordinary activities before Gift Aid and taxation Gift Aid Loss on ordinary activities before taxation Taxation Loss for the financial year

157

154

(169)

(154)

(12)

–

(12)

–

At 31 December 2013 the called up share capital of Westminster Cathedral Limited comprised 2 ordinary £1 shares and its reserves amounted to £11,399 (2012 - £23,667).

Investment income and interest receivable Parochial funds

Curial funds Group

Unrestricted funds £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2013 £’000

Total 2012 £’000

Income from listed investments

691

168

859

123

982

334

Rents and similar income

244

–

244

1,453

1,697

1,817

935

168

1,103

1,576

2,679

2,151

220

–

220

107

327

372

1,155

168

1,323

1,683

3,006

2,523

Investment income

Interest receivable

All rents are from investment properties situated in the United Kingdom. Page 44

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

Incoming resources from charitable activities Parochial funds

Curial funds Group

Unrestricted funds £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2013 £’000

Total 2012 £’000

Income from clubs

–

117

109

Chaplaincies

–

Catechetics

–

292

284

Candles, repository and newspapers

–

2,307

2,336

Board and lodging

–

115

Parish centres

–

1,453

1,291

Parish activities

–

1,502

1,231

School contributions

–

322

–

322

374

1,038

–

1,038

1,066

1,341

1,038

322

1,360

5,825

7,185

7,108

186

–

186

–

186

239

1,224

322

1,546

5,825

7,371

7,347

Parish and similar activities

Miscellaneous Pastoral centres (see below)

School contributions The school contributions are voluntary payments made by the schools of the Diocese towards the costs of the school projects team at Vaughan House and agreed as “Catholic Education Contributions” with the schools.

Pastoral centres In prior years, one of the Charity’s pastoral centres, All Saints Pastoral Centre, has been used by religious and secular groups as a retreat and conference centre. After exploring options for the long term future of the Centre, the Trustees determined that the cost of upgrading the facilities would not represent a prudent use of Diocesan resources.

Consequently, the Centre ceased to operate in December 2011. In 2013 the Centre generated income of £nil (2012 - £nil) and incurred expenditure in respect to the security and maintenance of the property pending disposal of £179,745 (2012 - £188,552). There was provision on the site for the work of SPEC until March 2014. The Diocese is committed to retaining a residential retreat for children and young people and has put in place alternative provision. On 30 July 2012 contracts were exchanged for the sale of the site for £7,056,683 with completion of the sale to take place in November 2014.

Page 45

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

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

Group - Curial funds

Cardinal’s office and Archbishop’s House

Unrestricted funds £’000 317

Restricted funds £’000 –

Total 2013 £’000 317

Total 2012 £’000 291

166

–

166

173

Communications

–

Auxiliaries & vicar general

859

–

859

863

Clergy & consecrated life

744

–

744

821

Ecumenical & interfaith

–

Education & formation

971

322

1,293

1,290

Pastoral and related work

2,787

354

3,141

3,134

Growing in Faith project

1,402

–

1,402

955

347

–

347

346

2,445

–

2,445

1,833

147

–

147

150

10,316

676

10,992

9,975

Safeguarding

National bodies Administration Miscellaneous

School building projects During the year, the Group and Charity received Government grants of £29,622,870 (2012 - £27,935,000) in connection with major repair and capital projects at Church schools in the Diocese. These monies, together with the contributions received from school governors are used to fund contractor payments also administered by the Charity acting as managing agent for the church schools concerned. During the year, the Charity made payments to contractors of £33,083,500 (2012 - £22,856,000).

Page 46

The Charity receives this money in its capacity of managing agent for the school governors only and, as such, these amounts are excluded from the statement of financial activities. Consequently, only the Charity’s net contribution to costs after deducting the contributions from school governors and government grants towards the costs of the projects concerned is included as resources expended in the statement of financial activities.

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

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

Group – Parochial restricted funds

2013 £’000

2012 £’000

Non-clergy salaries

4,515

4,213

Property repairs and renewals

3,855

3,096

Clergy stipends

1,977

1,891

Other fixed asset depreciation

1,902

1,791

Liturgical expenses

1,563

1,639

Housekeeping

1,266

1,263

Candles, repository and papers

1,028

1,061

Office and administration

1,102

1,018

Heat, light and water

2,074

1,875

Council tax, insurance and rates

1,009

1,029

Parish activities

1,289

1,059

363

320

1,069

766

Catechetics

366

376

Supply priests

353

362

Property depreciation

816

800

Travel expenses

245

250

Miscellaneous expenses

422

308

Parish Centre expenses Donations/grants

Bank Interest Mass stipends distributed

127

129

25,389

23,305

The above are the gross costs relating to each activity/department. Many of these have related income flows which are included within total incoming resources. 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.

Governance costs Parochial funds

Curial funds Group

Direct employed staff costs Audit and accountancy

Unrestricted funds £’000 31

Restricted funds £’000 –

Total funds £’000 31

Restricted funds £’000 –

Total 2013 £’000 31

Total 2012 £’000 31

105

–

105

113

136

–

136

144

Net (outgoing) incoming resources before transfers This is stated after charging:

Group

Staff costs (note 9)

Curial funds Unrestricted Restricted funds funds £’000 £’000

Parochial funds Total funds £’000

Restricted funds £’000

Total 2013 £’000

Total 2012 £’000

4,177

–

4,177

4,515

8,692

8,310

–

415

–

415

2,718

3,133

2,904

Auditor’s remuneration Audit fees Other services Depreciation (note 11)

Page 47

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

Staff costs and Trustee remuneration

Group

2013 £’000

2012 £’000

Staff costs during the year were as follows: 7,922

7,432

Social security costs

556

662

Other pension costs

214

216

8,692

8,310

8,661

8,279

8,692

8,310

Wages and salaries

Staff costs per function were as follows: Charitable activities Governance

The average number of actual employees and full time equivalents (FTE), analysed by function was:

Charitable activities Governance

2013 2013 Total FTE Employees 294 593

2012 2012 Total FTE Employees 311 572

295

594

312

573

The number of employees who earned £60,000 per annum or more (including benefits other than pension) during the year was as follows: Group

2013 £’000

2012 £’000

£60,000 - £70,000

£70,000 - £80,000

Employer contributions of £17,330 (2012 - £31,292) 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 (ie 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. However, none of the Trustees received any remuneration in respect of their services as a Trustee during the year (2012 - £nil), nor were they reimbursed any expenses connected with their duties as Trustees (2012 - £nil).

Page 48

The Rt Hon R Kelly, a Director of the Corporate Trustee, is an employee of HSBC plc, principal bankers to the Charity.

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.

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

Staff costs and Trustee remuneration (continued) 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.

with the requirements of FRS 17, to be included on the balance sheet. For the purposes of FRS 17, the assets of the scheme have been taken at market value and the liabilities have been calculated by a qualified independent actuary. 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. From July 2011, contributions increased to £23,800 per month.

FRS 17 Financial Reporting Standard 17 “Retirement Benefits” Revised (FRS 17) requires the surplus or deficit on the scheme as at 31 December 2013, calculated in accordance

The following information is based upon an actuarial valuation of the fund at 31 December 2013 by a qualified independent actuary. The major assumptions used by the actuary were: 31 Dec 2013 % per annum

31 Dec 2012 % per annum

Inflation

3.6

3.0

Salary increases

2.6

n/a

Rate of discount

4.4

4.1

Rate of increase in pensions in payment and deferred pensions

5.8

5.1

The mortality assumptions used were as follows: 2013 years

2012 years

Men

22.1

22.9

Women

24.4

24.9

Longevity at age 65 for current pensioners

Page 49

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

Staff costs and Trustee remuneration (continued)

The assets in the scheme and the expected rates of return were:

Equities

Long term return % 6.0

Value 2013 Long term £’000 return % 2,318 6.0%

Value 2012 Long term £’000 return % 1,899 6.2%

Value 2012 £’000 1,739

Corporate bonds

3.9

3.9%

5.4%

Government bonds

3.1

388

3.1%

399

4.2%

352

Property

4.2

4.2%

6.2%

Cash

3.2

620

3.2%

427

0.5%

899

3,416

2,813

3,067

Present value of scheme liabilities

(4,603)

(5,245)

(5,018)

Deficit in the scheme – net pension liability

(1,187)

(2,432)

(1,951)

Total assets

The expected long term return on cash is equal to bank base rates. The expected return on bonds is determined by reference to UK long dated gilt and bond yields. The expected rate of return on equities and property have been determined by setting an appropriate risk premium above gilt/bond yields having regard to market conditions. Total expenditure recognised in the statement of financial activities: 2013 £’000 –

2012 £’000 –

Past service cost

–

Effect of curtailment/settlement

–

Total expenditure recognised in the statement of financial activities

–

2013 £’000 171,953

2012 £’000 159,515

Current service cost

Funds and reserves

Funds excluding FRS 17 pension liability

(1,187)

(2,432)

170,766

157,083

2013 £’000

2012 £’000

Actual return less expected return on pension scheme assets

787

(734)

Experience gains and losses arising on the scheme liabilities

236

125

1,023

(609)

Net pension liability Funds including FRS 17 pension liability

Net gains (losses) recognised in the statement of financial activities:

Total amount recognised in the statement of financial activities

The cumulative amount of actuarial gains and losses recognised in the statement of financial activities to 31 December 2013 is a loss of £907,000.

Page 50

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

Staff costs and Trustee remuneration (continued)

Reconciliation of Opening and closing balances of the present value of the Charity’s share of scheme liabilities.

Scheme liabilities at 1 January 2013 Interest cost Actuarial (gains) losses Benefits paid Scheme liabilities at 31 December 2013

2013 £’000

2012 £’000

5,245

5,018

214

219

(787)

734

(69)

(726)

4,603

5,245

Contributions The total contributions made by the employer in the year have been £304,000 (2012 - £287,000). The contributions to be paid by the employer to the scheme for the year beginning after 31 December 2013 is £285,600. Reconciliation of opening and closing balances of the fair value of the Charity’s share of the scheme assets. 2013 £’000

2012 £’000

2,813

3,067

Expected return on scheme assets

132

Actuarial gains

236

125

Contributions by employer

304

287

Benefits paid

(69)

(726)

3,416

2,813

31 Dec 2013 £’000 3,416

31 Dec 2012 £’000 2,813

31 Dec 2011 £’000 3,067

31 Dec 2010 £’000 3,299

31 Dec 2009 £’000 3,486

Present value of scheme liabilities

(4,603)

(5,245)

(5,018)

(4,683)

(5,260)

Deficit in scheme

(1,187)

(2,432)

(1,951)

(1,384)

(1,774)

Fair value of scheme assets at 1 January 2013

Fair value of scheme assets at 31 December 2013

Amounts for the current and previous four periods

Fair value of assets

236

125

104

243

6.9%

4.44%

0.16%

3.15%

6.97%

Experience adjustment on scheme liabilities

–

309

–

Percentage of scheme liabilities

–

6.60%

–

Experience adjustment on scheme assets Percentage of scheme assets

Actuarial gains/(losses) on obligation amount % of present value of scheme liabilities

787

(734)

(716)

169

838

17.1%

(13.99%)

(14.27%)

3.61%

(15.93%)

Defined contribution scheme The Charity also operates a pension scheme providing benefits based on defined contributions. The Charity contributes 8% of salary and this is matched by employee contributions of 1%, 3% or 4% of salary. The scheme is administered by Friends Life Services Limited. The total contributions made by the employer in 2013 amounted to £189,000 (2012- £199,000). Page 51

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

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.

Tangible fixed assets

Group

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

Motor vehicles £’000

Total £’000

Cost or valuation 93,079

25,213

347

118,639

Additions

4,091

2,504

6,628

Disposals

–

(6)

–

(6)

At 31 December 2012

97,170

27,711

380

125,261

Cost

70,668

27,711

380

98,759

Valuation (1997)

26,502

—

26,502

97,170

27,711

380

125,261

12,734

18,711

292

31,737

958

2,150

3,133

13,692

20,861

317

34,870

At 31 December 2013

83,478

6,850

90,391

At 31 December 2012

80,345

6,502

86,902

92,989

25,065

347

118,401

4,094

2,498

6,625

At 31 December 2013

97,083

27,563

380

125,026

Cost

71,075

27,563

380

99,018

Valuation (1997)

26,008

—

26,008

97,083

27,563

380

125,026

12,820

18,486

292

31,598

958

2,138

3,121

13,778

20,624

317

34,719

At 31 December 2013

83,305

6,939

90,307

At 31 December 2012

80,169

6,579

86,803

At 1 January 2013

Depreciation At 1 January 2013 Charge for year At 31 December 2013 Net book values

Charity Cost or valuation At 1 January 2013 Additions

Depreciation At 1 January 2013 Charge for year At 31 December 2013 Net book values

Page 52

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

Works of art, treasures and plate are not capitalised in these accounts. They are considered to be heritage assets for the purposes of the 2005 Statement of Recommended Practice “Accounting and Reporting by Charities”. The assets are integral to the charity’s overall objective of advancing the Roman 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. As permitted under the transitional arrangements of Financial Reporting Standard 15 (FRS 15) “Tangible Fixed Assets”, 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. 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.

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. Land and buildings legally owned by the Charity and occupied rent free by Catholic voluntary aided schools, 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.

Capital commitments At 31 December 2013 the Charity had the following capital commitments:

Group and Charity

2013 £’000

2012 £’000

1,285

Land and buildings – functional property . Authorised but not contracted . Contracted but not provided

1,145

639

1,145

1,924

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

Page 53

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

Investments

At 31 December 2013 investments comprised the following:

Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000

Listed investments

25,191

22,661

19,484

17,649

Investment properties

27,005

24,441

27,005

24,441

–

52,196

47,102

46,489

42,090

Subsidiary undertaking (note 3)

Listed investments During the year, listed investments, under the control of the Westminster Roman Catholic Diocese Trustee, principally comprised units in a Mutual Investment Fund. The Mutual Investment Fund comprises investments managed by Sarasin & Partners LLP. At 31 December 2013 the Group held 174,395 units (2012 – 171,848) in the Mutual Investment Fund, equivalent to 74% (2012 – 73%) of the total Fund. The market value of these units at 31 December 2013 amounted to £24,518,196 (2012 - £21,333,266) and their historical cost as at that date was £21,293,153 (2012 - £20,852,272). At 31 December 2013 the Charity held 137,971 units (2012 – 135,424) in the Mutual Investment Fund, equivalent to 59% (2012 – 58%) of the total Fund. The market value of these units at 31 December 2013 amounted to £19,337,959 (2012 £16,811,517) and their historical cost as at that date was £16,794,307 (2013 - £16,192,480). The above results are net of investment managers’ fees of £108,636 in 2013 and £78,897 in 2012. At 31 December 2013 the composition of the listed investments of the Mutual Investment Fund was as follows:

Group

2013 %

2012 %

9.8

11.5

UK equities

31.3

20.7

Global equities

47.0

42.0

Fixed income

Alternative investment

2.3

1.5

Liquid assets (money market instruments and cash)

9.6

24.3

100.0

At 31 December 2013, 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 Sarasin Equisar – Socially Responsible (Sterling Hedged) – I Inc Sarasin Equisar – Socially Responsible – B Inc

Page 54

Percentage of fund % 21.0

Value £ 6,081,609

27.1

7,864,462

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

Listed investments held at 31 December 2013 and their movements during the year were as follows: Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000 17,399

Market value 22,171

21,663

17,649

Additions

298

–

298

Disposals

(650)

(1,300)

(650)

(1,300)

Net realised/unrealised gains during the year

3,105

1,510

2,485

1,252

24,666

22,171

19,484

17,649

19,484

17,649

At 1 January 2013

At 31 December 2013 Cash held for reinvestment

525

490

25,191

22,661

–

Investment properties held at 31 December 2013 and their movements during the year were as follows: Group and Charity

Total £’000

Market value At 1 January 2013 Unrealised gains on revaluation during the year At 31 December 2013

24,441 2,564 27,005

Investment properties are included in the accounts at valuations carried out in respect of each year from 2007 to 2013. It is the aim of the Directors that properties will each be revalued every four to five years. During 2007 the Charity began an exercise of revaluing its investment properties in accordance with Generally Accepted Accounting Practice. Certain properties are stated at a valuation determined on an open market basis in 2007 and 2008 by BNP Paribas Real Estate (formerly Atisreal UK), in 2009 and 2010 by Messrs Barnes Kirkwood & Woolf, Chartered Surveyors and for all years since by Albright Surveyors Limited, Chartered Surveyors. In 2013 Albright Surveyors Limited revalued five of the investment properties on an open market basis. 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, many 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 55

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

13 Debtors Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000

1,337

1,319

1,403

1,394

Receivable within one year Sundry debtors Prepayments and accrued income School expenditure recoverable from the Department for Education, Local Education Authorities and contract advances (note 19)

501

441

487

441

5,884

3,736

5,884

3,736

Loan to Westminster Cathedral Choir School

136

Other loans (see below)

118

128

118

128

7,976

5,760

8,028

5,835 415

Receivable after more than one year Loan to Westminster Cathedral Choir School

278

415

278

Amount due from the Society of Jesus

263

Other loans (see below)

339

8,856

6,777

8,908

6,852

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 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 31 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. Other loans receivable after more than one year comprise an interest free loan of £339,000 to The Cardinal Hume Centre, a registered charity.

Creditors: amounts falling due within one year

School building projects (note 19)

Group 2013 £’000 4,540

Group 2012 £’000 6,148

Charity 2013 £’000 4,540

Charity 2012 £’000 6,148

Collections payable to third parties

1,224

1,306

1,224

1,306

218

222

218

222

PAYE and national insurance

1,309

Accruals and sundry creditors

847

727

777

533

Funds held on behalf of the Belarusian Catholic Mission

712

727

712

727

1,056

1,088

1,056

1,088

9,935

11,556

9,865

11,362

Loans (see below) Proceeds relating to the sites of former schools

Funds held on behalf of the Congregation for the Eastern Churches

Page 56

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.

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

Restricted funds

Restricted funds comprise: 2013 £’000

2012 £’000

Charity Parochial Curial

13,684

10,724

121,324

111,563

135,008

122,287

Group Subsidiary entities parochial

7,372

7,316

142,380

129,603

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:

Group and Charity Carroll fund Masses funds Poor fund Ecclesiastical education fund

At 1 January 2013 £’000 678

Expenditure, Incoming gains, losses resources and transfers £’000 £’000 22 144

At 31 December 2013 £’000 844 1,299

1,178

397

434

106

Trinity fund

292

(34)

266

Wellesley Colley fund

205

228

Harrow education fund

129

–

130

New school building fund

461

515

Archbishop’s fund SPEC funds St Joseph’s pastoral centre

235

–

235

1,029

–

1,029

188

(59)

189

Property repairs fund

111

123

Post ordination studies fund

973

101

1,105

124

137

2,008

2,162

124

–

126

Growing in Faith fund

1,768

2,234

–

4,002

Other restricted funds

739

352

(337)

754

10,724

2,834

126

13,684

Missions fund St John Southworth fund Filipino Chaplaincy fund

Page 57

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

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

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

• Masses funds The masses funds represent monies held for masses.

• Poor fund This fund is for the relief of poverty within the Diocese.

• Ecclesiastical education fund The ecclesiastical education fund is for housing costs for priests.

• Trinity fund This fund is for major projects within 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 funds This fund represents monies received in respect of the SPEC Projects at All Saints Pastoral Centre and SPECEast in Poplar.

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

• 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.

• 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.

• Filipino Chaplaincy fund This is to support the work of the Filipino Chaplaincy.

Page 58

• 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.

• Other restricted funds Other restricted funds are for general charitable purposes of the Diocese.

Parochial restricted funds 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 funds represents the Diocesan assessment and similar transfers being a contribution from the parishes of the Diocese towards the central costs incurred by the Curia.

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

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 1 January 2013 £’000 1,202

New designations £’000 –

Utilised/ released £’000 (16)

At 31 December 2013 £’000 1,186

697

(79)

716

1,899

(95)

1,902

The funds have been designated for the following purposes: • Schools projects This represents monies set aside for the school building projects. • Other designated funds Other designated funds are monies set aside for Diocesan charitable purposes.

Tangible fixed assets fund

Group and Charity At 1 January 2013 Net movement in the year At 31 December 2013

£’000 17,099 208 17,307

The fixed assets fund represents the net book value of the tangible fixed assets belonging to the Curial funds.

Page 59

2013 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2013

Analysis of net assets between funds

Group

Curial funds Unrestricted Restricted funds funds £’000 £’000

Total funds £’000

Parochial funds Restricted funds £’000

Total 2013 £’000

Fund balances at 31 December 2013 are represented by: Tangible fixed assets

17,307

–

17,307

73,084

90,391

Investments

11,123

9,577

20,700

31,496

52,196

1,142

4,107

5,249

24,116

29,365

Total net assets excluding pension liability

29,572

13,684

43,256

128,696

171,952

Pension liability

(1,187)

–

(1,187)

–

(1,187)

Total net assets

28,385

13,684

42,069

128,696

170,765

Unrestricted funds £’000

Restricted funds £’000

Total 2013 £’000

Tangible fixed assets

17,307

73,000

90,307

Investments

11,123

35,366

46,489

1,143

26,642

27,785

Total net assets excluding pension liability

29,573

135,008

164,581

Pension liability

(1,187)

—

(1,187)

Total net assets

28,386

135,008

163,394

Net current assets

Charity

Fund balances at 31 December 2013 are represented by:

Net current assets

School building projects

The Charity is the legal owner of properties comprising voluntary aided schools within the Diocese. As explained in the principal accounting policies these properties are valued at £nil for the purpose of these accounts. The responsibility for the improvement, extension and repair of the buildings lies with the school governors. Grants towards such work are paid to the governors by the Department for Education (DfE) and the Local Education Authorities. As the school 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 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. From time to time the Charity holds grant income received from DCSF on behalf of schools, as custodian trustee. At 31 December 2013 this amounted to £133,914 (2012 - £209,107). During the year ended 31 December 2013, the Charity acted as an agent for school governors on school building projects as summarised right. Page 60

Number of projects

2013 212

2012 147

2013 £’000

2012 £’000

33,084

22,856

(29,623)

(27,935)

Net governors’ liability

3,461

(5,079)

Amounts owing on contracts at 31 December 2013 (note 14)

4,540

6,148

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

5,884

3,736

Total amount spent Less: grants received

Diocese of Westminster Annual Report & Accounts 2013

Notes to the accounts – 31 December 2013

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. They are administered by the Central Finance Office of the Westminster Roman Catholic Diocesan Trust and many have charitable objectives similar to the Charity. Charity Name

Charity Registration Number

Objects

Diocese of Westminster Sick and Retired Priests Fund

278136

The provision of assistance to sick, elderly and retired clergy.

Hare Street House

247200

The provision of a house for the Archbishop.

Norfolk Fund Charity

241675

Assisting young, poor Roman 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.

With the exception of Westminster Cathedral Choir School all the above charities 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. The Sick and Retired Priests Fund also reimburses costs to the Westminster Roman Catholic Diocesan Trust in respect to services provided by the Diocese to assist the fund to meet its charitable objectives.

Financial activities of charitable subsidiaries

The operations of a number of other registered charities are considered integral to the Charity and therefore their incoming resources, resources expended and net assets have been consolidated with those of the Charity in these accounts. The charities concerned are as follows: • The Moorfields Charity (Charity Registration No 247198) - a charity providing assistance to the Roman Catholic parishes of Moorfields and Bunhill Row and assistance to Westminster Cathedral. • Westminster Cathedral Trust (Charity Registration No 270637) - a charity with the principal objectives of supporting Westminster Cathedral and preserving its fabric and music. A summary of the statement of financial activities and a statement of the net assets at 31 December 2013 of each of the charities is given below. Audited accounts of each charity will be filed with the Charity Commission

Incoming resources Resources expended

The Moorfields Charity £’000 132

Westminster Cathedral Trust £’000 798

Total 2013 £’000 930

Total 2012 £’000 230

(47)

(1,431)

(1,478)

(265)

(633)

(548)

(35)

Net gains on investments

158

463

621

258

Net movement in funds

243

(170)

223

2,239

5,120

7,359

7,290

Net incoming/(outgoing) resources for the year

Net assets

Page 61

2013 Annual Report & Accounts

Diocese of Westminster

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 of more of the following programmes: • The care of sick and elderly priests • The training of new priests • Evangelisation and formation • The inclusion of all people in the life of the church • The Trinity Fund (which provides a lifeline to parishes with financial problems) • Work with young people • Lourdes pilgrimage • Preserving church buildings

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You can make a donation online at www.rcdow.org.uk/donations You can also get further information about the different ways that you can help by contacting: Head of Planned Giving & Appeals, Diocese of Westminster, 46 Francis Street, London SW1P 1QN Email: charlesdonington@rcdow.org.uk Tel: 020 7798 9375

Diocese of Westminster Annual Report & Accounts 2013

The Diocese of Westminster

North Hertfordshire

Stevenage East Hertfordshire

H E R T F O R D S H I R E Welwyn Hatfield

St Albans

Dacorum

Broxbourne Hertsmere

Watford

ENFIELD

Three Rivers BARNET HARROW

HARINGEY CK HA

ISL

Y NE

N TO

TOWER CITY HAMLETS

R STE

MIN

EALING

ST WE

HILLINGDON

CAMDEN

ING

BRENT

HOUNSLOW

KENSINGTON & CHELSEA HAMMERSMITH & FULHAM

Part of SURREY RICHMOND

Spelthorne

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Westminster Roman Catholic Diocesan Trust

2013 Annual Report and Accounts