2014 Annual Reports & Accounts

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2014 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 2014

Contents Annual Report Reference and administrative information

Reports 2

Introduction by Cardinal Vincent Nichols, Archbishop of Westminster 3 Educating for the Common Good 4 The Education Commission 8

Report of the Directors of the Corporate Trustee

28

Independent auditor’s report

35

Accounts Consolidated statement of financial activities

36

School Chaplaincies 10

Consolidated statement of total recognised gains and losses

37

Featured School 11

Consolidated balance sheet

38

Youth Ministry 12

Charity balance sheet

39

University Chaplaincies 17

Consolidated cash flow statement

40

Growing in Faith 20

Principal accounting policies

41

Financials 22

Notes to the accounts

44

The Education Service 9

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2014 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 N Hudson 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 Mr A Ndoca

Financial secretary P Camoletto CPA

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

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

Diocese of Westminster Annual Report & Accounts 2014

Cardinal’s Introduction ‘Good education plants seeds when we are young, and these continue to bear fruit throughout life.’

Pope Francis, Laudato Si’ 213

The mission of the Church, by its very nature, is to share the good news of Jesus Christ and so to teach, in his name, successive generations. At the heart of this mission is our commitment to education at all stages.

The loving formation of a child in knowledge of Jesus and in service of others in his name takes place in different environments: in the home, parish and school. The diocese seeks to support parents in their calling to educate and nourish the faith of their children, a faith that demands an active love of neighbour. This education instils a sense of responsibility for the common good, leading to a desire to build a just society where varied gifts are appreciated and celebrated. Parish life meanwhile teaches children to become aware of the wider community and to develop respect for and learn to collaborate with others. Building on this, our schools strive to be beacons of excellence where children are encouraged to understand and develop their unique gifts, and to discover how to use them for the benefit of all.

The fruits of this formation are apparent when visiting schools in the diocese. Our children show concern for one another, respect for other cultural traditions and compassion for the poor and vulnerable in their community. Our schools serve children in some of the most disadvantaged areas in the country. Nevertheless, students demonstrate an enthusiasm about their future, an eagerness to engage with the world, and a love for learning in its many different forms.

Pope Francis’ words tell us that education is integral to the Church’s identity since good teaching and responsive children enable the Church to hand on Christ’s teaching. Our mission today is made possible by the dedication of teachers, chaplains, support staff and those who volunteer their time to serve as school governors. Their efforts are reinforced by catechists, youth workers and parishioners in our churches, who contribute to the formation of our young people by the example of their Christian lives. It is most of all through the example of Catholic families living each day in answer to the Lord’s call to serve him that children learn to develop their unique vocation. It is through their generosity and selfless giving that Catholic education bears rich fruit for the Church and for society.

His Eminence Cardinal Vincent Nichols, Archbishop of Westminster

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2014 Annual Report & Accounts

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Diocese of Westminster

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Diocese of Westminster Annual Report & Accounts 2014

‘ An authentic faith – which is never comfortable or completely personal – always involves a deep desire to change the world, to transmit values, to leave this earth somehow better than we found it… All Christians are called to show concern for the building of a better world. This is essential, for the Church’s social thought is primarily positive: it offers proposals, it works for change and in this sense it constantly points to the hope born of the loving heart of Jesus Christ.’

Pope Francis, Evangelii Gaudium 183

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2014 Annual Report & Accounts

Diocese of Westminster

Educating for the Common Good The Church exists to share the good news of the Gospel which is an encounter with the love of God, an active love that takes us out of ourselves to reach out in turn in love and service to others, especially the most vulnerable and disadvantaged, and to work for the good of society.

This mission of proclaiming the good news is handed down from one generation to the next through example and education. The primary educators of children are their parents, whose ‘natural vocation is to educate children so they may grow up to be responsible for themselves and for others’. (Pope Francis, General Audience 20 May 2015) ‘Christian communities are called to offer support to the educational mission of families, and they do this first of all with the light of the Word of God.’ (Gen Aud 20 May 2015).

Specifically, the Church fulfils this role by encouraging relationships between parish, home and school, and specifically through the provision of outstanding schools where children will receive an education that will develop their individual gifts and talents.

Through an education that focuses on the whole child, developing the unique gifts of each one, children learn

A Catholic school is called upon to witness with joy to the goodness of each person

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how to use their individual talents to serve the common good and to contribute to advancing a just society. In other words, they learn to use their encounter with the love of God to serve the good of society.

The work of educating children takes many forms.

Primarily, it takes place within parishes, where learning and support are provided through the engagement of children in the life of the parish, youth activities and increasing awareness of the needs of the community where they live. Together with parishes, Catholic schools play a vital role in helping children mature into thoughtful individuals who can make a positive contribution to society.

A Catholic school is called upon to witness with joy to the goodness of each and every person, and to be a beacon of God’s gracious gift of mercy. The school is called to have a heart for the poor, whether for the struggling or disadvantaged student, or by looking outwards to the needs of others beyond the school community. Indeed, one of the purposes of a Catholic school is to help students discern the values that ennoble humanity and enrich the life of society.

Diocese of Westminster Annual Report & Accounts 2014

Increasingly, with the stresses and strains of raising children in a fragmented society, a challenging economic environment, multiple influences competing for the attention of children and rising expectations, the Church has taken a greater role in the education of children across all dimensions, including the academic, artistic, musical, physical, spiritual and social.

As Pope Francis explains, ‘We are living in an informationdriven society which bombards us indiscriminately with data – all treated as being of equal importance – and which leads to remarkable superficiality in the area of moral discernment.

In response, we need to provide an education which teaches critical thinking and encourages the development of mature moral values.’ (EG 64) In times past, it was the Church, through the work of religious orders, which ‘often laid the foundations of educational provision long before the State assumed a responsibility for this vital service to the individual and to society’. (Pope Benedict, Address to teachers and religious at St Mary’s College, Twickenham, September 2010) Today, the Diocese of Westminster and a number of religious orders working in the diocese take up this mission by providing schools which promote rigorous standards of excellence. There are currently 214 schools across the diocese, which 41 are Children are encouraged to of secondary schools, 154 primary broaden their horizons, two sixth to learn about and interact schools, form colleges, two non-maintained with people of all faiths all-age schools, and 15 independent schools. Of this total, 191 schools are under the Trusteeship of the diocese. There are close to 75,000 students currently educated in our Catholic schools.

The Catholic school promotes learning which exposes each pupil to a wide range of subjects from maths and sciences to languages, sports, the arts, music and practical subjects. Children are encouraged to integrate the knowledge they acquire in these subjects so that they form a better understanding of the culture in which they live.

Through group endeavours, such as choirs or orchestras, children learn to put aside their individual differences and preferences, and instead work collaboratively towards a common goal. From this, they learn that a successful collaboration can and does produce a performance that transcends the efforts of any one person. Thereby they learn to become part of a culture of cooperation that demonstrates respect for others.

Catholic teaching provides the foundation of our understanding and respect for other religions, and in particular for Islam and Judaism which share a common heritage with Christianity as the three Abrahamic faiths.

Children are encouraged to broaden their horizons, to learn about and interact with people of all faiths and none in a spirit of mutual respect and appreciation for each other’s contribution to the good of society. Visits to places of worship form a natural part of school life, as does participation in multi-faith events and conferences.

Students are encouraged to look beyond their own school community to reach out in love and service to others, whether it is through fundraising for local charities, visiting the elderly in care homes, or getting involved in community action projects, usually in cooperation with people of all faiths and none. As students participate in outreach projects that promote the dignity and wellbeing of others, they also develop leadership skills that will help them grow into confident, mature citizens ready to serve society.

This learning does not stop once young people leave secondary education. There is a recognition that they need to continue to discern and build on these values throughout their post-secondary education years, so that they are equipped to navigate the proliferation of choices they face and take their place in society as active and committed citizens. University chaplaincies play an important part in guiding young people who are often living independently for the first time to find their way.

Every person is called to serve others and contribute to the good of society in some unique way. As Blessed John Henry Newman expressed it, ‘God has created me to do him a definite service’. It is the task of each baptised Christian to discover his or her unique vocation. A Catholic education helps each young person to discern the way in which he or she is called to serve.

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2014 Annual Report & Accounts

Diocese of Westminster

Catholic teaching provides the foundation of our understanding and respect for other religions.

The Education Commission The Archbishop, Cardinal Vincent Nichols, is responsible for Catholic education in the Diocese of Westminster.

The Education Commission, under the chairmanship of Bishop John Sherrington, assists the Archbishop in these responsibilities. Consisting of 12 members who have broad expertise in the area Children are of primary, secondary and encouraged to tertiary education, the integrate the commission is responsible for the strategic policy of knowledge Catholic education in the they acquire to diocese in accord with the mission of the Church. form a better

purpose of the committee is to assess financial requirements relating to building costs of schools and colleges, and to safeguard the interests of Catholic education within national and local parameters. This committee scrutinises carefully any proposed building works and the pupil place planning strategy. Its purpose is to ensure the diocese has prioritised carefully its asset management plan for the future, and seek opportunities to develop and expand pupil places where we can. With available funding remaining constant while greater demands are placed on schools, careful planning and prioritisation become ever more vital.

understanding of the culture in which they live.

The commission approves the annual development plan presented by the Education Service and monitors its progress and use of resources through its meetings and the annual self-evaluation. It appoints the officers of the Education Service who have the responsibility to carry out the policy of the commission.

This year also saw the introduction of a new Capital Strategy Committee of the Education Commission to help meet its objectives to ensure adequate and appropriate provision of Catholic education in the diocese. The

Another important aspect of its work is to ensure the Catholicity of the schools in the diocese and monitor the standard of Catholic education (particularly through OFSTED Section 5 reports) as well as religious education (RE) (particularly through Section 48 reports). This work is carried out by the Inspection Committee which reports to the commission. Foundation governors are appointed by the bishop to work on governing bodies which have oversight of the schools and are the employers of the staff.

It recommends to the trustees the foundation of new schools and the conversion of schools to academy status within multiacademy trusts organised across the diocese or locally. It seeks to ensure the expansion of Catholic places so that as many children as possible can receive a Catholic education.

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Diocese of Westminster Annual Report & Accounts 2014

The Education Service The Education Commission delegates the task of implementing strategic policy and overseeing the work of schools to the Education Service. The Education Service consists of the Director of Education and a team of 17 officers who have a wide range of responsibilities in overseeing the work of diocesan Catholic schools.

It also offers advice and support to the independent schools and schools run by religious orders. In 2014, the Education Service focused its attention on leadership and management, asset management, and school governance.

Leadership and Management Over the last year the diocese has dealt with an unprecedented level of head and deputy headship appointments, with 32 primary and secondary headship appointments, as well as 34 deputy headship appointments. Officers have offered assistance to governing bodies in making these appointments and often securing temporary arrangements until such time as the substantive post holder could be appointed. In addition Foundation to this, officers have provided advice and support in the governors play appointment of other leadership a vital role in roles, such as RE co-ordinators overseeing the and heads of RE.

work of local schools.

More recently, officers have been working with professional recruitment agencies to develop a proactive approach to identifying suitable candidates for leadership positions and providing them with the coaching and support that will enable them to move into senior leadership positions.

A significant part of the work of the Education Service relates to supporting governors in their key role of oversight of the school and as the employers of all staff who work in our schools. The diocese guides governors and head teachers in following correct employment procedures when dealing with the appointment of staff and the management of various human resource issues which may occur from time to time. Such issues can be some of the most demanding challenges facing head teachers and governors, and the diocese devotes considerable time and resources to offering the necessary help and support.

Asset Management In 2014, the diocese was successful in securing £12.3m for Local Education Authority Co-ordinated Voluntary Programme (LCVAP) identified projects. The vast majority of this funding was spent on necessary maintenance work in schools and colleges, such as boiler repairs and roof repairs, to ensure a safe, secure and comfortable environment that is conducive to learning.

In the past year, the diocese opened a new school on time and on budget in Tower Hamlets. Our Lady and St Joseph Catholic Primary School is an amalgamated school on a new site in Poplar, which also houses the St Francis Family Centre. Funded by the diocese and costing £11m, it was built with the proceeds from the sale of land of two schools in Tower Hamlets, ensuring that the money was reinvested in school places for the benefit of children in the borough.

Developed in conjunction with the Catholic Children’s Service (CCS), a separate charity, the amalgamated school and family centre aims to offer a ‘whole family’ education and support programme designed to enable all children to reach their full potential. The school has a unique and exciting design which was the result of the close collaboration between the diocese, the CCS, the contractor and builders. (See Featured School.)

Governance Foundation governors play a vital role in overseeing the work of local schools, and providing advice and support to the head teacher and leadership of the school on a wide range of issues affecting the school and the quality of education it provides to its pupils. It is also the responsibility of a school’s governing body to hire staff, oversee budgets, make decisions about capital expenditure, oversee admission policy, and support the head and staff in maintaining a Catholic ethos. Foundation governors therefore take on immense responsibilities for the well-being of the school community, all on an unpaid, voluntary basis. It is critical therefore that they receive the necessary training and support to fulfil their mandate.

The Education Service has reviewed, developed and improved its management of foundation governor appointments. Processes have been put in place to identify suitable candidates and encourage them to apply. Once their application has been received, checks are then carried out and training provided to equip them with the necessary understanding of the role and to instil in them a sense of confidence as they assume this important service. Over the last year extensive work has been undertaken to help governing bodies reconstitute in time to meet the September 2015 deadline for adhering to statutory requirements under the School Governance Regulations 2012. The Service has developed a more streamlined data base that will help to improve communication and support for governors and address any concerns they may have.

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2014 Annual Report & Accounts

Diocese of Westminster

School Chaplaincies and the Catholic Identity of Our Schools

The Catholic identity of a school permeates the whole being of that community, giving it cause for existence, purpose, identity, mission and way of life in Christ. Every Catholic school, like each individual Christian, is called to be a beacon of excellence in education.

In any kind of community where students and staff place themselves open to the power of the Gospel, people are needed to direct and support the human, spiritual, and pastoral life of the community. The head teacher is called to be the first and foremost exemplar of Catholic faith in the school and is assisted by chaplains when they are priests specially appointed by the diocesan bishop.

However, a great majority of this essential work in our schools today is directed by lay and religious chaplaincy coordinators, often supported by their local priests and deacons, and by others from the diocese involved in the work of the youth and education services. In the Diocese of Westminster, we have a wonderful team of chaplains and chaplaincy coordinators who work alongside each other, with their students and colleagues, with their priests, deacons and fellow Christians, to bring to life a chaplaincy in each school which is, in every way, at the heart of that Catholic school.

The chaplaincy in its work reflects the mission and way of life that the entire school aspires to follow. Many chaplains work on their own in large schools, which can be an isolating experience if it is not maturely integrated into their own way of life. At their most effective, chaplains can become for the whole community a sign of the commitment and faithful dedication that is asked by Christ of all his followers.

Chaplaincy is not merely a ‘service’ that is offered but is an inclusive enterprise at the heart of the school community. In many schools pupils themselves are being encouraged to participate in the work and ministry of the school chaplaincy. Chaplaincy, like friendship, and like Christianity itself, is a form of ministry. That means it must transcend not only the whole school, but also the whole person who is called by Christ to follow him and serve others in the community and beyond the school gates, enabling the Catholic nature of the school to shine forth before all and among all, giving identity and purpose to the entire organism.

Every Catholic school is called to be a beacon of excellence in education Page 10

Diocese of Westminster Annual Report & Accounts 2014

Featured School Our Lady and St Joseph Catholic Primary School and St Francis Family Centre, Poplar In 2014, in the shadow of Canary Wharf, a new two-entry form school was established following the merger of Our Lady Catholic Primary School, Limehouse and Holy Family Catholic Primary School, Poplar. A new building was designed to house the school together with the St Francis Family Centre which supports low-income families of all faiths and none. Thus a trinity of community was formed in order to offer a ‘whole family’ education and support programme designed to enable all children to reach their full potential.

Run by the Catholic Children’s Society to support families in the local area, the St Francis Family Centre offers many services including a nursery, after-school group, assistance for parents on issues such as welfare benefits, health issues and housing, and classes in computing, first aid, self-defence, and healthy eating. In addition, the school, in partnership with Caritas Westminster, is part of the Magic Breakfast programme, ensuring pupils have a healthy start to the day with a nutritious breakfast that will give them the energy they need to perform at their best.

The building’s innovative design reflects the aspiration of the three merged communities to offer pupils and their parents the opportunity for a brighter future and higher educational achievement. The circular space at the entrance to the school symbolises entry into the pool of learning and the building is designed on a curve from this central point, which grows deeper, higher and wider along its radial lines to reflect the aspiration of the school community, with each classroom having a unique design.

Great care has been taken with every detail of the design and construction of the building to ensure that the school is eco-friendly and uses resources sustainably.

Among the many features A trinity of are photovoltaic cells community to contributing towards electricity consumption, air source heat offer a ‘whole that conserve energy, family’ education pumps planted living roofs that provide environment for plants and insects as well as insulation to protect waterproof membranes, low consumption fittings, and carbon-neutral characteristics in the finish.

Each element in the design of the school and family centre is intended to reflect the heritage of the community which is steeped in the Catholic faith and in the history of the docks of East London. The symbolism also extends to the specially-commissioned crucifix, designed by architect Anne Dixon and carved by artist Howard Spiers, which is depicted as a tree of life, emphasising the life-giving nature of Christ’s sacrifice, which serves as an example and inspiration to all in the community to offer their lives in the service of others for the good of all society.

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2014 Annual Report & Accounts

Diocese of Westminster

Westminster Youth Ministry

‘As they talked and discussed, Jesus himself drew near and walked with them.’

(Lk 24.14)

The disciples’ encounter with the Risen Lord on the road to Emmaus (Luke 24. 13-35) provides the inspiration for the Westminster Youth Ministry, whose mission is to ‘enable parishes to accompany young people in their journey towards Christian maturity, through the delivery of a focused and coordinated youth service’.

The richness and diversity of the young people of the diocese is a blessing and offers the youth team a unique opportunity to build and deliver a vibrant and exciting programme. The team’s mandate is to serve young people in the 214 parishes and 214 schools, as well as to work alongside the rich variety of Catholic movements who are represented throughout the diocese.

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The team of five works with a very wide spectrum of young people, beginning with children in Year 3 through all school ages to young adults of university age and older. As is to be anticipated, these children and young people have diverse interests and expectations, and the team must be able to support their wide-ranging development needs.

To that end, the work of the youth service falls into three streams of activity: parish, outreach and SPEC, with each stream providing a particular focus which come together to deliver a coordinated approach. Each stream has unique challenges, yet offers exciting opportunities to engage with children and young people, and to support their spiritual growth and personal development.

Diocese of Westminster Annual Report & Accounts 2014

Parish Youth Ministry

Outreach

At the heart of our mission is supporting our young people where they are, most often in their home parish at a one-to-few level. This allows the team to engage with our young where they are most at ease and normally surrounded by family and friends.

Although parish work remains at the centre of the youth team’s endeavours, we recognise that young people may be looking for opportunities for development outside this traditional setting and we therefore need to be more creative in supporting them. In looking to serve the broadest possible range of young people, the team deploys a number of complementary engagement strategies.

Parish youth ministry is a living challenge, one where the team must remain aware of the personal faith and spiritual growth journey of each young person in its widest context and consider how best to support their development sensitively within a socially-engaging youth group setting. The on-going challenge is to create at parish level a sense of community and belonging, an environment that is welcoming and attractive to all its members, and is at the same time based on a universal and consistent faith foundation. It is in this less formal environment that the young have an opportunity to integrate what they learn at home and in school as they discover how to build community through a network of relationships and collaboration in group endeavours.

Throughout the year, the team has worked tirelessly with over 35 parishes and several deaneries to support their local youth strategies, which are set by the parish itself.

In some parishes, the activities take the form of regular social gatherings for young people in a safe environment where the focus is on building community cohesion. In other parishes, the gatherings have a more structured approach, which includes time for social activities, discussion about a relevant topic in the news and prayer.

This structure allows young people to explore some of the challenges faced by the contemporary world, and learn how their faith might inform the way they are called to respond to these issues in charity towards their neighbours, the local community and the wider society.

An increasing number of parishes in the diocese are appointing youth workers to work directly in the parish.

Youth workers can be paid employees who work anywhere from four hours per week to a full week.

Equally, they can be parishioners who may volunteer several hours of their time each week to organising youth activities. The Youth Ministry team’s role is to support this growing youth worker community, which consists of approximately 20 paid youth workers and some dozen volunteers or catechetical coordinators who devote a portion of their week to youth work. They are invited to meet on a termly basis to share the joys and successes, as well stresses and strains of this ministry. The team also provides tangible practical support, which may begin with assisting with the recruitment process and continue with on-going provision of on-site support for the youth worker.

As young people begin to take a more active role in their parishes, the team has introduced a young adults training programme to help them build their skills and self-confidence. These training days are hosted at the

The team’s engagement with parishes can range from simple advice where a particular challenge has arisen, through to guidance on the recruitment of a parish youth worker, and this often includes practical, on-going support in the development of a youth group.

One key development this year has been the support of spotlight events where the youth team works with a particular parish or deanery to gather young people to celebrate Mass and enjoy social time together. Examples of these include the Young Adults of the West or Enfield Deanery’s Youth Alive series of events, which often act as the impetus for the creation of parish-based youth groups which then meet regularly.

The Youth Ministry team will continue to focus intensely on this parish-centred work as it is at the heart of its mission. The hope is that it will extend this support to more parishes throughout the diocese to help them to engage with their young people to help them grow and develop into mature, responsible citizens ready to serve the common good.

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2014 Annual Report & Accounts

Diocese of Westminster

Centre for Youth Ministry where a field specialist is invited to conduct the training. In the past year, events have included a public speaking day and a music ministry day. By participating in this training, young adults build proficiency that can help them contribute to other spheres, whether in a professional capacity or through public service.

The team is increasingly engaged directly with schools, called to help build and deliver induction days at the start of the academic year and end-of-year reflection days.

These days typically have large audiences and provide a unique opportunity to engage with a demographically diverse range of young people and build a positive legacy message for youth ministry across the diocese.

Each year the team organises at least one diocesan youth pilgrimage, as well as arranging a youth pilgrimage that runs concurrently with diocesan or national pilgrimages.

These pilgrimages give young adults the opportunity to journey together both physically and spiritually, and provide the youth team with an opportunity to engage with individuals who may be able to assist in future parish

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youth ministry activities. Most recently the pilgrimage to Brazil for World Youth Day in 2013, and Santiago, Lourdes and the Holy Land in 2014 were all very well received.

Westminster is blessed to have close at hand a rich variety of Catholic youth movements which have their own particular charisms. These youth movements, such as Youth 2000, Catholic Underground and Soul Food, bring a richness to the faith. The youth team works closely with these movements to raise awareness and participation from the widest possible youth audience. The team also leads, supports, or positively participates in a range of national and local events, such as Spirit in the City and Celebrate.

The Youth Ministry team continues to broaden its reach and develop more interesting and imaginative ways to engage with the young people and young adults of Westminster to help them on their journey as they develop into mature adults ready to take their place in society. The team strives to review the current activities on offer and to add new ones that will engage the hearts and imaginations of the youth of the diocese.

Diocese of Westminster Annual Report & Accounts 2014

SPEC is the diocesan youth retreat centre which has been running successfully for over twenty years. Based, until recently, at the All Saints Pastoral Centre in London Colney, SPEC’s principal focus is on the development and delivery of a comprehensive faith-based programme of residential and day retreats for schools and parishes of the diocese. Each year several thousand young people spend time with the resident community understanding more about their Catholic faith, and how they are called to live out that faith in service to others and to the wider society.

Recognising that the All Saints Pastoral Centre needed significant improvement to conform to current legal regulations and the high cost of maintenance, the diocese

sold the property and reinvested the funds in the former Grail property at Waxwell Farm in Pinner.

In April 2014, the project relocated to Pinner, which affords SPEC a truly dedicated facility, consisting of established buildings, including a range of poustinias, among seven acres of land. The new site requires a substantial amount of work and consequently until September 2016 only day retreats can be offered.

From September 2016 SPEC will become a dedicated Residential Retreat Centre, able to accommodate up to 64 students per retreat, with one- and two-night retreats becoming the principal offerings.

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2014 Annual Report & Accounts

Diocese of Westminster

Communications The Youth Ministry team recognises that its primarily young audience are avid users of digital media on the go which fit in with their active lifestyles. It is therefore vital that communications to this group reflect this trend.

In 2014, a visually vibrant and engaging website was developed. Social media channels also play a focal part in the communication strategy as they enable the team to get information to this constituency very quickly and to encourage feedback from them on a range of topics, including potential programmes and events.

Use of various social media channels enables the team to disseminate information about forthcoming events, engage with the youth attending the events and encourage them to share their photos and stories as they happen. With social media, the interaction can continue well past the event, as young people are encouraged to continue the conversation and their involvement in other youth activities.

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Diocese of Westminster Annual Report & Accounts 2014

University Chaplaincies: Guiding Young People in Discovering Their Calling

‘ The task of a teacher is not simply to impart information or to provide training in skills intended to deliver some economic benefit to society; education is not and must never be considered as purely utilitarian. It is about forming the human person, equipping him or her to live life to the full – in short it is about imparting wisdom.’

Pope Benedict XVI, Address to teachers and religious at St Mary’s College, Twickenham, September 2010

There are currently 270,000 people (including 34,000 Catholics) who are studying at higher education institutions in the Diocese of Westminster.

The Church’s mission to the students and staff at our universities includes chaplaincy centres like Newman House and St Peter’s Parish in Hatfield; the work of chaplains and student Catholic societies on the various university campuses; Catholic halls of residence, like More House, Netherhall and Ashwell House; the many movements and associations that work with young people in the diocese; and not least the work of our parishes as they welcome students who live within their parish boundaries.

Young adulthood is such an important time. There are so many opportunities, so many questions, and so many pressures: some creative and some evidently destructive.

It’s also a time when many people are thinking about their faith in an independent way for the first time, working out for themselves what they really believe and how (or whether) to live their faith.

For Catholic students university is often a defining moment that sets the course for the rest of their life.

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2014 Annual Report & Accounts

Diocese of Westminster

The competing philosophies and world views in the university environment mean that it is hard to remain indifferent. This is why the work of university chaplaincy is so important and so exciting. The Church, through her chaplains and through the peer ministry of Catholic students themselves, is making a real difference to the lives of thousands of young people.

One part of this work involves welcoming students into communities where they can see the Catholic faith lived in its fullness, and where they can find a sense of Catholic identity and belonging. At Newman House, for example, there is the rhythm of the liturgy, prayer, faith formation and community life that carries on each week. This rhythm is mirrored in each college, where its own student-led Catholic society, supported by a Catholic chaplain, forms a local faith community on campus.

Everyone is at a different stage of faith. For each person, whether a student or a member of the academic staff, the hope is that their faith can be nurtured, deepened, and questioned in a way that is informative, stimulating, intellectually credible and faithful to the teaching of the Church.

But it’s not just about the learning or the praying; it’s also about the friendships that develop quite spontaneously when young people share their faith and live it in a way that is natural and joyful.

It is also about opening the doors and stepping out into the streets, as Pope Francis never tires of reminding us.

Social outreach and volunteering are such important parts of Catholic student life, ensuring they don’t get caught in a selfOpening the that regarding bubble. The chaplaincy coordinates with a number of social doors and projects, which include Open House stepping (supporting the homeless); Tutor Plus out into the (school mentoring and homework classes); Olallo House (a centre for streets newly-arrived migrants); and the Westminster Lourdes Pilgrimage (helping at the St Frai Hospital). As well as the experience of serving others and the gift of time, these projects provide a chance to reflect on the lay vocation, on Catholic social teaching, and issues of justice and peace in society.

The last few months have seen a renewed emphasis on evangelisation in the university context. On the one hand, Catholic students and societies have very positive relations with other Christian groups and with students from other faiths. There are regular ecumenical prayer meetings, and interfaith discussions, trips, and social events. At the same time, young Catholics have a real appreciation for the gift of their faith, a love for the Lord and for his Church, and a desire to share this with others.

Students, almost by definition, are wondering where life will take them and, at least for Catholic students, what

Page 18

God is calling them to. Some, perhaps, are too narrowly focused on one career path; and some have given no thought at all to their future; but nearly all of them are looking for guidance and support as they discern their career and vocation. It’s both an exhilarating and unsettling time. The chaplaincy centres and the different Catholic societies offer plenty of opportunities to explore career options and vocation: gap-year fairs, career panels, visiting speakers, subject-area support groups, spiritual direction, and the Samuel discernment programme.

Above all there is the example of committed lay people, religious sisters, and priests working in the chaplaincy.

Many students are thinking about marriage and family life; and a good number are considering the priesthood or religious life.

Even though a huge amount of chaplaincy work takes place across the universities and parishes of our diocese, Newman House is the symbolic centre of university chaplaincy. It is at once a thriving residential community for 65 Catholic students; a chapel and chaplaincy centre for students from all the colleges in central London; and a hub that supports the work of chaplains and Catholic societies throughout the diocese. We are just beginning a feasibility study to explore how Newman House and the wider chaplaincy can develop over the next few years.

What are the real needs of students today? What are the challenges they face? How can the Church best support them? How can they best support the Church and each other? These are exciting times for university chaplaincy.

Diocese of Westminster Annual Report & Accounts 2014

Sr Mary Kenefick, Catholic Chaplain to UCL and Brunel University London: I am always amazed by the value of ‘presence’ among the Brunel University London community. I have recently had the great joy, together with the students, of building up its Catholic Society. It has required much generosity and great courage from the Catholic students to come on board. The CathSoc meets weekly and enjoys a rich programme of prayer, sacramental life, catechesis, retreats, pilgrimages and social events, the aim being to deepen the students’ faith and prayer life. Students are offered spiritual direction and discernment about both their state in life and about their career.

All of this requires training, and here is the core of the chaplain’s role of supporting, guiding, and reflecting with the students so they can become confident leaders in the Church and society. Such aspects of their formation can, I hope, prepare them to become active members of any community they will live in subsequently.

Their enthusiasm, spontaneity and sheer naivety are sometimes very moving. To see them participate in a sound discussion, be of service with the Faith & Light Group in Hayes, visit the elderly sisters at Pield Heath, or hear primary school children read at St Mary’s, Uxbridge, just deepens my faith and those they serve: that the Church has a wonderful body of new witnesses in its midst.

A Student Testimony – Joe Coming to university I had many questions about my faith and was certainly searching for something. My parish priest said I should check out Newman House, so at the beginning of term in first year I went for Sunday Mass, where I found a group of young, friendly people and welcoming chaplains.

I enjoyed the sense of community and soon realised there was something special about the chaplaincy.

I wanted to know if this Catholic business was really for me or not.

Throughout this first year I gradually got a sense that my faith was becoming something important

and that Catholicism was making more sense to me, although I realised I knew almost nothing about my faith.

The next year I moved in to live at Newman House.

I was very excited about the whole experience and almost went overboard in terms getting involved in the life of the chaplaincy, going to every activity available.

Not only have I met genuine friends through the chaplaincy, but it has also convinced me that the Church truly is an incredible force for good in the world as well as having shown me parts of the Church that I never knew existed like Youth 2000, the Faith Movement, Catholic Voices, all of which have subsequently strengthened my faith.

Three years ago, I was someone who wasn’t sure about the existence of God. Today I have become someone who enjoys going to daily Mass (I never thought I’d say that), and who has spoken on TV about the ‘Joy of the Gospel’.

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2014 Annual Report & Accounts

Diocese of Westminster Growing in Faith

How the monies will be shared How the monies will be Shared Parish Project 35%

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

His vision is to have: • Parishes which are sound, prayerful and sustainable • Priests who are strengthened in their commitment, well formed, sustained in ministry and old age and renewed by new vocations • A vibrant programme of outreach to those in need in every parish with the active support of our diocese through Caritas Westminster From January 2012 to December 2014, parish by parish, priests and parishioners have joined this historic initiative.

More than 19,000 parishioners have supported Growing in Faith with gifts and pledges, totalling £37m over five years. This has been a tremendous achievement and a wonderful expression of faith. It gives the diocese the confidence and means to grow its mission. Every pledge matters and the ongoing support of every parishioner is now essential in realising the vision we have for our future.

Caritas Westminster 16%

Diocese Post Ordination Training 1%

Trinity Fund 1%

Sick & Retired Clergy (Religious Orders) 4%

Priest Training (Religious Orders) 1%

Sick & Retired Clergy (Diocesan) 28%

Priest Training (Diocesan) 14%

How donorsTheopted to pay average pledge was £1 a day

Key highlights

£37 Million Raised in pledges

£12Received Million in

cash to date

19,000 + Gifts and pledges

Page 20

Total Pledges 100% – 19,436 Diect Debits and Standing Orders

Cheques

Cash

Other

71% 13,800

20% 3,887

6% 1,166

3% 583

Growing in Faith Diocese of Westminster Annual Report & Accounts 2014

264 parish projects are being funded through the campaign 170

57

Building works

Investment in People

17 20

The average The pledge waswas£1£1aa day day average pledge £5,000 to £9,999 6.8%

Greater than £25,000 0.4%

Less than £499 32.5%

£10,000 to £24,999 1.2% £2,500 to £4,999 11.7%

Other

Social Outreach

Levels of participation £380,000 Pledged by clergy £500,000 Largest gift received 1,400 + Volunteers 268 Local projects funded 27% Average participation Cost of the Campaign The cost of fundraising, £3.79m, represents 10.2% of the total amount that has been pledged. These costs have been met by the Curia from existing reserves.

£500 to £999 17.4%

£1,000 to £2,499 30.0%

Examples of local projects Burnt Oak – installation of TV screens in the church to provide better visibility during liturgical celebrations Hounslow – extension of their choir loft to welcome the increasing number of parishioners Sudbury – recruited a youth worker to organise events for young parishioners

Southall – refurbishment of the church and parish centre

St Albans South – supporting the funds of poorer parishes through the Trinity Fund

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

• So far, Magic Breakfast has delivered over 36,000 meals to under-privileged children and Caritas Westminster food banks have supported 8,600+ individuals • Bakhita House, a refuge centre, will open in London in April 2015 to support victims of human trafficking • Caritas St Joseph has launched Connect@ Centre in Hounslow offering lifelong learning opportunities for individuals with intellectual disabilities • Project Courtyard will start in 2015 and support young people aged 16-24 who are not in training, employment or education

Page 21

2014 Annual Report & Accounts

Diocese of Westminster

Income and expenditure Parish Income (total)

Curial Income (total)

l £34,402 4 Tota ,00 201 0

201

l £22,713 4 Tota ,00

0

40,000,000

20

13

Total ,00 £37,533

25,000,000

20

0

Parish Expenditure (total)

13 T , 00 otal £11,525

0

Curial Expenditure (total)

l £33,401 4 Tota ,00 201 0

l £11,752 4 Tota ,00 1 0 2 0

40,000,000

20

Page 22

13

Total £30,921,0

00

15,000,000

20

13

Total £11,525,0

00

Diocese of Westminster Annual Report & Accounts 2014

Income 30,000

Parish Income 20,000

10,000

£’000 Collections, donations 24,550 and legacies 28,242 Parish activities

6,181 5,825

Investment income

1,979 1,683

Rents

1,016 1,142

Trading

649 639

Disposal of assets

27 2

2014 2013

Commentary Parish income decreased by £3.1m in 2014. Legacy income fell by £1.4m and the remainder is the result of the income from the Growing in Faith campaign being held in curial restricted funds until the grant to the relevant parish has been made.

Page 23

2014 Annual Report & Accounts

Diocese of Westminster

Income

6,000

5,000

Curia Income

4,000 3,000 3,000 2,000

£’000 Diocesan assessment

5,294 5,042

Income from charitable resources

1,466 1,546

Donations, legacies

8,290 2,794

Investment income

574 1,323

Rental income

812 722

Assessments

163 98

Trading

301 0

Disposal of assets

5,813 0

1,000

2014 2013

Commentary Curial income increased by £11.2m, the major components being the completion of the sale of All Saints Pastoral Centre £5.8m and the increased proceeds from the Growing in Faith campaign £5.4m, of which £1.3m represents a transfer from parish reserves in respect of funds from the Growing in Faith campaign not yet granted to the parishes.

Page 24

Diocese of Westminster Annual Report & Accounts 2014

Expenditure

6,000 5,000 5,000

Parishes Expenditure

4,000 3,000 3,000 2,000

1,000

£’000 Non clergy stipends and housekeeping

6,076 5,781

Assessment

5,294 5,042

Property repairs

4,048 3,855

Council Tax and utilities

2,884 3,083

Depreciation

2,794 2,718

Clergy stipends

2,059 1,977

Parish activities and centres

1,559 1,652

Liturgical

1,578 1,563

Candles and repository

975 1,028

Office and administration

1,019 1,102

Donations, grants

2,933 1,069

Costs of generating income

492 482

Miscellaneous expenses

437 422

Other

417 380

Catechetics

381 366

Commentary

Supply priests

403 353

Interest

52 48

Parish expenditure increased by £2.5m although £1.3m was in respect of a transfer from parish to curial funds for monies in the Growing in Faith campaign not yet granted to the parishes. There was also a further special grant to a religious order of £0.5m and other costs grew by 2%.

2014 2013

Page 25

2014 Annual Report & Accounts

Diocese of Westminster

Expenditure

5,000 4,000

Curia Expenditure 3,000 3,000

2,000

£’000 Pastoral and related work

5,312 4,543

Administration

1,980 2,445

Education and formation

1,047 1,293

Auxiliaries,Tribunal and Vicar General

891 859

Department of Clergy and Consecrated Life

715 744

Archbishop’s Office

441 408

National Bodies

350 347

Public affairs and communications

152 166

Other

617 187

1,000

2014 2013

Commentary Overall Curia expenditure was stable. The main area of growth was in pastoral work, in particular, the work of Caritas. In addition to the £1.5m spent on the final year of the Growing in Faith campaign, substantial grants were made from the proceeds of that campaign. A property was purchased to facilitate the start of the programme to support the victims of human trafficking.

Pastoral work also included our youth ministry which is highlighted in the earlier pages of this report. Work has commenced on the youth retreat centre at Waxwell Farm, completion of which will facilitate a range of longer retreats for the youth of the diocese.

The work at St Joseph’s Pastoral Centre in support of people with learning disabilities continues to grow with the Centre being at the forefront in developing new courses to assist in not only meeting the needs of clients but also helping them reach their full potential.

Page 26

Westminster Roman Catholic Diocesan Trust

Annual Report & Accounts 2014

2014 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2014

Introduction The Directors of the Corporate Trustee (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 2014.

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” (SORP 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.

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.

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

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 over 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.

Page 28

Diocese of Westminster Annual Report & Accounts 2014

Report of the Directors of the Corporate Trustee – Year to 31 December 2014

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 2014 were as follows: Appointed/Resigned His Eminence Cardinal V Nichols Rt Rev J Arnold (1,2,4,5)

Resigned 28 November 2014

Rt Rev N Hudson (1,4)

Appointed 18 July 2014

Rt Rev J Sherrington (1,2,5,7) 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

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);

Miss L Ferrar (2,6) Rt Hon R Kelly Mr C Kemball Mr D Moseley (4) Mr A Ndoca (3)

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).

Appointed 9 June 2015

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 day-to-day management, the responsibilities of the Trustees, the current objectives and future plans. The Trustees are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up to date on any changes in legislation.

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.

• 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

2014 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2014

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 number 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), monitors the integrity of the accounts and reviews the charity’s internal financial control and risk processes.

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 which meets under the auspices of the Trustees (as distinct from the Finance Board referred to above) exists to give advice to the Archbishop on financial matters. It must also be consulted on administrative matters of major importance.

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.

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Risk management Whilst risk management can limit risk 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 implemented additional programmes. One programme was to roll out a mandatory Health and Safety monitoring scheme to the parishes. The second programme was to increase the frequency and rigour of the standard of parish financial audits.

In 2014, 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 going forward.

Connected charities The main charities connected with the Charity are listed below.

• Westminster Ecclesiastical Education Fund (WEEF) (Charity Registration No 312528). WEEF is a charity for the training of students to the priesthood and is the recipient of the 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, elderly and retired clergy.

A full list of all connected charities is given in note 20 to the attached accounts.

All the charities listed above 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 our Charity and have many similar or related charitable objectives.

Diocese of Westminster Annual Report & Accounts 2014

Report of the Directors of the Corporate Trustee – Year to 31 December 2014

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: 26.3% in UK equities, 2.5% in alternative investments; 48.5% in overseas equities; 10.5% in fixed interest, 1% in property and 11.2% 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 have reviewed the performance of the investments during the year and remain confident that their medium term investment policy is being achieved.

The Investment Committee reviews the choice of investment managers every three years.

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 2014 the implementation of the Socially Responsible Investment or ethical policy has reduced the CCLA returns by 0.1% and reduced the returns of the funds invested in Sarasin and Partners LLP by 0.3%. 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 the position where it is possible.

The Trustees were, once again, proactive in corporate engagement throughout the year.

The Diocese joined shareholders, representing over 52 million shares, in co-filing a supportive but stretching shareholder resolution for the 2015 Royal Dutch Shell AGM. This resolution seeks to help the company in its management of the risks and opportunities posed to invested value by the anticipated transition to a low carbon economy.

To this end it is asking the company to disclose further information about: ongoing greenhouse gas emissions management, portfolio resilience against the International Energy Agency’s 2035 scenarios, low carbon energy R&D and its ongoing public policy work, amongst other areas. The company will be recommending that shareholders support the resolution when it is on the Agenda of their 2015 AGM. Furthermore, through our partnerships with the Church Investors Group and one of the Charity’s investment managers, CCLA, the Trustees have also encouraged FTSE350 constituent companies 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. During the year, 23 companies managed to achieve significant enough progress to improve their Carbon Disclosure Project (CDP) performance band (that runs from ‘A’ to ‘E’).

Furthermore, analysis conducted by the University of Edinburgh has found, to a 95% confidence rate, that improvements we have seen in many FTSE250 constituent companies over the past two years would not have happened without this engagement.

Additionally, attention has been focussed on encouraging six FTSE 100 constituent financial services and pharmaceutical companies to become accredited living wage employers. This necessitates that all personnel, whether they be contractors or directly employed members of staff, who regularly work on the companies’ UK premises are paid above £9.15 per hour in London or £7.85 per hour Page 31

2014 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2014

elsewhere in the UK. We were particularly pleased that three of these companies are now in productive dialogue with the Living Wage Foundation.

Finally, through its investments with Sarasin & Partners LLP, the Diocese was able to call on the BG Group Board to withdraw its £12M ‘golden handshake’ for its new CEO.

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 focus of the doctrine is the Common Good, which refers to what belongs to everyone by virtue of their common humanity. The simple definition of the Common Good is ‘the sum total of social conditions which allows people, either as groups or as individuals, to reach their fulfilment more fully and more easily’. Within its overall objective, one of the aims of the Charity includes the fulfilment of social teaching.

Activities The principal ways in which these objectives are fulfilled are by the provision of religious and pastoral services and the provision of Catholic education (including the provision and maintenance of churches, presbyteries and schools), and implementation of social teaching.

The provision of religious and pastoral services The Diocese has 214 parishes of which ten are run by separate religious congregations which are not consolidated, 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

Page 32

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). Every parish community strives to achieve racial and cultural harmony 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 214 schools, 156 of which are primary, 41 secondary, and 17 independent some of which are in the trusteeship of religious congregations. As at 31 December 2014, there were three multi academy trusts, comprising both primary and secondary schools. The Charity provides the land and buildings through which these schools and academies 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.

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 on the right.

Diocese of Westminster Annual Report & Accounts 2014

Report of the Directors of the Corporate Trustee – Year to 31 December 2014

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.

Financial Review

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.

Expenditure

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

2014 £m

2013 £m

Parishes Income Surplus before assessment Diocesan assessment and other transfers

34.4 (26.7) 7.7 (6.7)

37.5 (25.9) 11.6 (5.0)

Surplus

1.0

Investment and revaluation gains

2.2

The implementation of social teaching

Added to reserves

3.2

6.6 3.2 9.8

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.

Curial 6.7

5.0

Other income

16.0

Total income

22.7

Expenditure

(11.8) 0.9

6.5 11.5 (11.1) 0.4 3.5

11.8

3.9

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.

Diocesan assessment and other transfers

Surplus Investment and revaluation gains Added to reserves

10.9

Please note that the above numbers include income and expenditure of the fundraising programme called Growing in Faith. This income in the Curia amounted to £6.2 million in 2014 (2013 - £2.2 million).

The programme incurred expenditure of £1.5 million in 2014 (2013 - £1.4 million) which is shown within the Curia figures.

Full details of the income and expenditure are shown in the consolidated statement of financial activities and in the notes to the accounts.

Page 33

2014 Annual Report & Accounts

Diocese of Westminster

Report of the Directors of the Corporate Trustee – Year to 31 December 2014

Reserves policy

The Charity’s assets

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.

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

Financial position Parochial reserves at 31 December 2014 total £131.9 million (2013 - £128.7 million) which relate solely to the assets and activities of individual parishes. They are not available for the general purposes of the Charity nor are individual parishes able to transfer their funds to other parishes within the Diocese.

Curial reserves at 31 December 2014 amount to £53.9 million (2013 – £42.1 million). Of this, £20.2 million (2013 - £13.7 million) represents the balance on restricted funds which is not available for general purposes. Unrestricted funds amounted to £33.7 million (2013 - £28.4 million). Of this £19.3 million (2013 - £17.3 million) is a tangible fixed assets fund and a further £1.8 million (2013 - £1.9 million) has been set aside for specific purposes leaving general funds of £12.6 million (2013 - £9.2 million) after the pension reserve deficit of £1.7 million (2013 - £1.2 million) for the general purposes of the Charity. This reflects an increase of £3.4 million in general funds compared to 2013 and is equivalent to approximately 14 (2013 – 10) months of future budgeted unrestricted expenditure. The Trustees believe that the level of general funds at 31 December 2014 is not inconsistent with that stated in the Charity’s reserves policy.

Consequently, the Trustees continue to believe that free reserves are adequate but not excessive but will continue to monitor the position closely.

Page 34

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 three years. The programme reached its conclusion in December 2014. Almost all parishes had participated.

Besides raising funds, the campaign endeavoured 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 £37 million of gifts and pledges from over 19,000 households, of which £14.3 million has already been received. The cost to date of this campaign has been £3.9 million, which is being funded from the general reserves of the Curia.

Signed on behalf of the Trustees:

Trustees Approved by the board on: Thursday 17th September 2015

Diocese of Westminster Annual Report & Accounts 2014

Independent Auditor’s Report – 31 December 2014

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 2014, 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 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.

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 2014 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.

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

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 2015 Page 35

2014 Annual Report & Accounts

Diocese of Westminster

Consolidated statement of financial activities – Year to 31 December 2014

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

Total funds £’000

Parochial funds Restricted funds £’000

Total 2014 £’000

Total 2013 £’000

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

1

746

6,168

6,914

24,550

31,464

31,036

.. Assessments

2

163

–

163

–

163

98

.. Commercial trading operations

3

301

–

301

649

950

639

. Investment income and interest receivable

4

439

135

574

1,979

2,553

2,444

812

–

812

1,016

1,828

1,864

5

1,102

364

1,466

6,181

7,647

7,933

11

5,813

–

5,813

27

5,840

2

9,376

6,667

16,043

34,402

50,445

44,016

. Activities for generating funds

. Rental income from functional properties Incoming resources from charitable activities . Parish and similar activities Other incoming resources . Net gains on disposal of tangible assets Total incoming resources Resources expended Cost of generating funds . Fundraising trading: cost of goods sold and other costs . Investment manager’s fees

3

132

_

132

492

624

482

12

–

–

–

–

–

20

6

10,072

1,433

11,505

26,218

37,723

36,381

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

115

–

115

21

136

144

10,319

1,433

11,752

26,731

38,483

37,027

8

(943)

5,234

4,291

7,671

11,962

6,989

15

5,697

973

6,670

(6,670)

–

–

4,754

6,207

10,961

1,001

11,962

6,989 1,023

7

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

(763)

–

(763)

–

(763)

. Net investment gains

1,320

306

1,626

2,169

3,795

5,670

Net movement in funds

5,311

6,513

11,824

3,170

14,994

13,682

Reconciliation of funds . Balances brought forward at 1 January 2014

28,385

13,684

42,069

128,696

170,765

157,083

. Balances carried forward at 31 December 2014

33,696

20,197

53,893

131,866

185,759

170,765

Page 36

Diocese of Westminster Annual Report & Accounts 2014

Consolidated statement of total recognised gains and losses – Year to 31 December 2014

Historical cost net movement in funds

Net movement in funds (page 36)

2014 £’000 14,994

2013 £’000 13,682

Net investment gains arising from changes in the value of the investment portfolio

(3,795)

(5,670)

(22)

(638)

763

(1,023)

11,940

6,351

Gain calculated by reference to the historic cost of investments disposed of during the year Actuarial losses (gains) Historical cost net movement in funds

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.

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

Page 37

2014 Annual Report & Accounts

Diocese of Westminster

Consolidated balance sheet – 31 December 2014

Notes

Curial £’000

Parochial £’000

Total 2014 £’000

Total 2013 £’000

Tangible assets

11

19,259

75,266

94,525

90,391

Investments

12

22,764

33,473

56,237

52,196

42,023

108,739

150,762

142,587

Fixed assets

Current assets Stocks Debtors

13

Cash at bank and in hand

Creditors: amounts falling due within one year

14

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

–

66

66

62

9,212

260

9,472

8,856

15,417

24,055

39,472

30,382

24,629

24,381

49,010

39,300

(11,503)

(848)

(12,351)

(9,935)

13,126

23,533

36,659

29,365

406

(406)

–

–

13,532

23,127

36,659

29,365 171,952

55,555

131,866

187,421

(1,662)

–

(1,662)

(1,187)

53,893

131,866

185,759

170,765

15

20,197

131,866

152,063

142,380

. Designated funds

16

1,845

–

1,845

1,902

. Tangible fixed assets fund

17

19,259

–

19,259

17,307

14,254

–

14,254

10,363

9

(1,662)

–

(1,662)

(1,187)

12,592

–

12,592

9,176

53,893

131,866

185,759

170,765

Pension liability

9

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: Thursday 17th September 2015

Page 38

Diocese of Westminster Annual Report & Accounts 2014

Charity balance sheet – 31 December 2014

Notes

Total 2014 £’000

Total 2013 £’000

Tangible assets

11

94,454

90,307

Investments

12

49,583

46,489

144,037

136,796

Fixed assets

Current assets Debtors

13

Cash at bank and in hand

Creditors: amounts falling due within one year

14

Net current assets Total net assets excluding pension liability Pension liability

9

Total net assets including pension liability

9,685

8,908

38,317

28,741

48,002

37,649

(12,432)

(9,865)

35,570

27,784

179,607

164,580

(1,662)

(1,187)

177,945

163,393

144,249

135,008

Represented by: Funds and reserves Restricted funds

15

Unrestricted funds . Designated funds

16

1,845

1,902

. Tangible fixed assets fund

17

19,259

17,307

14,254

10,363

9

(1,662)

(1,187)

12,592

9,176

177,945

163,393

. General funds .. Free reserves .. Pension reserve

Approved by the Trustees and signed on their behalf by:

Trustee Approved on: Thursday 17th September 2015

Page 39

2014 Annual Report & Accounts

Diocese of Westminster

Consolidated cash flow statement – Year to 31 December 2014

Cash inflow from operating activities

Notes A

Total 2014 £’000

Total 2013 £’000

8,258

3,754

Returns on investments

B

2,553

2,448

Capital expenditure and financial investment

B

(2,246)

(6,010)

Increase in cash

C

8,565

192

Notes to the cash flow statement for the year to 31 December 2014.

A

Adjustment of net incoming resources before transfers to net cash inflow from operating activities

Net incoming resources before transfers

Total 2014 £’000

Total 2013 £’000

11,962

6,989

3,182

3,133

Investment income and interest receivable

(2,553)

(2,448)

Gain on disposal of tangible fixed assets

(5,840)

2

Pension cost less contributions payable

(288)

(222)

Depreciation charge

(4)

3

Increase in debtors

(617)

(2,082)

Increase (decrease) in creditors

2,416

(1,621)

Net cash inflow from operating activities

8,258

3,754

Total 2014 £’000

Total 2013 £’000

2,553

2,448

(Increase) decrease in stocks

B

Gross cash flows

Returns on investments Investment income and interest received Capital expenditure and financial investment Receipts from disposal of tangible fixed assets Payments to acquire tangible fixed assets Receipts from disposal of investments Payments to acquire listed investments Payments to acquire investment properties

C

8 (6,628)

240

650

(525)

(40)

(486)

–

(2,246)

(6,010)

At 1 January 2014 £’000 30,382

Cash flows £’000 9,090

Analysis of changes in net funds

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

Page 40

6,907 (8,382)

At 31 December 2014 £’000 39,472

525

(525)

–

30,907

8,565

39,472

Diocese of Westminster Annual Report & Accounts 2014

Principal accounting policies – 31 December 2014

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), 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 subsidiaries 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 Charity’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 companies in connection with their commercial trading operations and investment management fees paid directly to investment managers. b. The cost of charitable activities comprises expenditure on the Charity’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 Page 41

2014 Annual Report & Accounts

Diocese of Westminster

Principal accounting policies – 31 December 2014

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.

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 condition and net book values of all properties are regularly reviewed to ensure that the depreciation policies adopted are and remain appropriate.

Disposals of freehold property are accounted for on completion.

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

The governors are responsible for the buildings and for the repair and refurbishment costs thereof and accounting for any grants received in respect of these costs. The Charity assists governors in managing projects and makes grants via the Curial office to assist the governors with their liability for school and academy building and repair costs. The Charity administers these monies as managing agent and makes the appropriate payments to contractors for work carried out. Any monies due to the Charity, or held by the Charity on behalf of schools and academies, at the balance sheet date are treated as debtors or creditors respectively on the balance sheet.

Details of the Diocesan voluntary aided schools and academies are given in the Diocesan Year Book and on the Diocesan website.

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 2014

Principal accounting policies – 31 December 2014

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 Trustees.

• The designated funds being monies set aside out of general funds and designated for specific purposes by the Trustees.

• 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.

The Charity also contributes to a defined contribution scheme providing benefits based upon the value at retirement 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

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

1

Collections, donations and legacies Collections, donations and legacies in the year amounted to £31,464,000 (2013 - £31,036,000). Included in this figure are legacies of £779,000 (2013 - £3,238,000), £777,000 of which are restricted for application within parishes (2013 - £3,209,000).

2

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.

3

Commercial trading operations and investment in trading subsidiary At 31 December 2014 the Charity owned the entire called up ordinary share capital of the following companies:

Company

Country of incorporation

Principal activity

Westminster Cathedral Limited

England

Miscellaneous trading activities

Aedificabo Limited

England

Development of building projects

Audited accounts of the companies will be filed with the Registrar of Companies.

Summaries of the trading results of Aedificabo Limted and Westminster Cathedral Limited are given below.

Westminster Cathedral Limited

Aedificabo Limited

Turnover Cost of sales Gross profit Administrative expenses Profit on ordinary activities before Gift Aid and taxation

2014 £’000 301

2013 £’000 –

2014 £’000 649

2013 £’000 639

–

–

(298)

(302)

301

–

351

337

(132)

–

(194)

(180)

169

–

157

157

(169)

–

(162)

(169)

Loss on ordinary activities before taxation

–

–

(5)

(12)

Taxation

–

–

–

–

Loss for the financial year

–

–

(5)

(12)

Gift Aid

At 31 December 2014 the called up share capital of Westminster Cathedral Limited comprised 2 ordinary £1 shares and its reserves amounted to £5,900 (2013 - £11,399).

At 31 December 2014 the called up share capital of Aedificabo Limited comprised 2 ordinary £1 shares and its reserves amounted to £nil (2013 - £ nil)

4

Investment income and interest receivable Parochial funds

Curial funds Group

Unrestricted funds £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2014 £’000

Total 2013 £’000

172

110

282

112

394

420

Investment income Income from listed investments Rents and similar income Interest receivable

97

–

97

1,786

1,883

1,697

269

110

379

1,898

2,277

2,117

170

25

195

81

276

327

439

135

574

1,979

2,553

2,444

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

Page 44

Diocese of Westminster Annual Report & Accounts 2014

Notes to the accounts – 31 December 2014

5

Incoming resources from charitable activities Parochial funds

Curial funds Group

Unrestricted funds £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2014 £’000

Total 2013 £’000

Income from clubs

–

–

–

54

54

117

Chaplaincies

–

–

–

22

22

27

Catechetics

–

–

–

317

317

292

Candles, repository and newspapers

–

–

–

2,382

2,382

2,307

Board and lodging

–

–

–

105

105

99

Parish centres

–

–

–

1,479

1,479

1,453

Parish activities

–

–

–

1,192

1,192

1,502

Parish and similar activities

School contributions Miscellaneous

–

364

364

–

364

322

1,102

–

1,102

630

1,732

1,814

1,102

364

1,466

6,181

7,647

7,933

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

Page 45

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

6

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

Group - Curial funds

Unrestricted funds £’000 324

Restricted funds £’000 –

Total 2014 £’000 324

Total 2013 £’000 317

Communications

152

–

152

166

Safeguarding

117

–

117

91

Auxiliaries & vicar general

891

–

891

859

Clergy & consecrated life

715

–

715

744

Ecumenical & interfaith

46

–

46

40

Education & formation

684

363

1,047

1,293

Pastoral and related work

2,724

1,070

3,794

3,141

Growing in Faith project

1,518

–

1,518

1,402

350

–

350

347

1,980

–

1,980

2,445

Cardinal’s office and Archbishop’s House

National bodies Administration Miscellaneous

571

–

571

147

10,072

1,433

11,505

10,992

School building projects During the year, the Group and Charity received government grants of £31,033,794 (2013 - £29,622,870) in connection with major repair and capital projects at church schools and academies 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 and academies concerned.

During the year, the Charity made payments to contractors of £32,504,706 (2013 - £33,083,500).

Page 46

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

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

Diocese of Westminster Annual Report & Accounts 2014

Notes to the accounts – 31 December 2014

6

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

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

2014 £’000

2013 £’000

4,828 4,048 2,059 1,949 1,578 1,248 975 1,019 1,848 1,036 1,235 324 1,557 381 403 845 261 437 52 135 26,218

4,515 3,855 1,977 1,902 1,563 1,266 1,028 1,102 2,074 1,009 1,289 363 1,069 366 353 816 245 422 48 127 25,389

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.

7

Governance costs Parochial funds

Curial funds Group

Direct employed staff costs Professional fees

8

Total funds £’000 34

Restricted funds £’000 –

Total 2014 £’000 34

Total 2013 £’000 31

–

81

21

102

113

–

115

21

136

144

Unrestricted funds £’000 34

Restricted funds £’000 –

81 115

Net (outgoing) incoming resources before transfers

This is stated after charging: Group

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

Parochial funds Total funds £’000

Restricted funds £’000

Total 2014 £’000

Total 2013 £’000

3,700

–

3,700

4,828

8,528

8,692

• Audit fees

73

–

73

–

73

70

• Other services

10

–

10

–

10

5

332

–

332

2,850

3,182

3,133

Staff costs (note 9) Auditor’s remuneration

Depreciation (note 11)

Page 47

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

9

Staff costs and Trustee remuneration

Group

2014 £’000

2013 £’000

Staff costs during the year were as follows: 7,710

7,922

Social security costs

567

556

Other pension costs

251

214

8,528

8,692

8,494

8,661

Wages and salaries

Staff costs per function were as follows: Charitable activities Governance

34

31

8,528

8,692

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

Charitable activities Governance

2014 2014 Total FTE Employees 304 646

2013 2013 Total FTE Employees 294 593

1

1

1

1

305

647

295

594

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

2014

2013

£60,000 - £70,000

2

2

£70,000 - £80,000

–

1

£80,000 - £90,000

1

–

£100,000 - £110,000

1

–

4

3

Employer contributions totalling £32,395 (2013 - £17,330) 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 (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 (2013 - £nil), nor were they reimbursed any expenses connected with their duties as Trustees (2013 - £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 2014

Notes to the accounts – 31 December 2014

9

Staff costs and Trustee remuneration (continued) FRS 17

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

Financial Reporting Standard 17 Retirement Benefits Revised (FRS 17) requires the surplus or deficit on the scheme as at 31 December 2014, calculated in accordance 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.

The following information is based upon an actuarial valuation of the scheme at 31 December 2014 by a qualified independent actuary.

The major assumptions used by the actuary were: 31 Dec 2014 % per annum

31 Dec 2013 % per annum

Inflation

3.4

3.6

Salary increases

2.4

2.6

Rate of discount

3.6

4.4

Rate of increase in pensions in payment and deferred pensions

2.4

5.8

The mortality assumptions used were as follows: 2014 years

2013 years

Men

22.1

22.1

Women

24.5

24.4

Longevity at age 65 for current pensioners

Page 49

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

9

Staff costs and Trustee remuneration (continued)

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

Equities Corporate bonds Government bonds Property Cash

Value 2014 Long term £’000 return % 2,640 6.7

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

Value 2012 £’000 1,899

66

4.4

62

3.9

70

484

3.5

388

3.1

399

35

4.9

28

4.2

18

617

3.8

620

3.2

427

3,842

–

3,416

–

2,813

Present value of scheme liabilities

(5,504)

–

(4,603)

–

(5,245)

Deficit in the scheme – net pension liability

(1,662)

–

(1,187)

–

(2,432)

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:

Expected return

2014 £’000 186

2013 £’000 132

Interest cost

(202)

(214)

Finance charge

(16)

(82)

Total expenditure recognised in the statement of financial activities

(16)

(82)

2014 £’000

2013 £’000

(732)

787

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

Actual return less expected return on pension scheme assets Experience (losses) gains arising on the scheme liabilities Total amount recognised in the statement of financial activities

(31)

236

(763)

1,023

The cumulative amount of actuarial gains and losses recognised in the statement of financial activities to 31 December 2014 is a loss of £1,670,000.

Page 50

Diocese of Westminster Annual Report & Accounts 2014

Notes to the accounts – 31 December 2014

9

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 2014

2014 £’000

2013 £’000

4,603

5,245

Interest cost

202

214

Actuarial losses (gains)

732

(787)

Benefits paid

(33)

(69)

5,504

4,603

Scheme liabilities at 31 December 2014

Contributions The total contributions made by the employer in the year have been £304,000 (2013 - £304,000).

The contributions to be paid by the employer to the scheme for the year beginning after 31 December 2014 is £304,000.

Reconciliation of opening and closing balances of the fair value of the Charity’s share of the scheme assets.

2014 £’000

2013 £’000

3,416

2,813

Expected return on scheme assets

186

132

Actuarial (losses) gains

(31)

236

Contributions by employer

304

304

Fair value of scheme assets at 1 January 2014

(33)

(69)

3,842

3,416

31 Dec 2014 £’000 3,842

31 Dec 2013 £’000 3,416

31 Dec 2012 £’000 2,813

31 Dec 2011 £’000 3,067

31 Dec 2010 £’000 3,299

Present value of scheme liabilities

(5,504)

(4,603)

(5,245)

(5,018)

(4,683)

Deficit in scheme

(1,662)

(1,187)

(2,432)

(1,951)

(1,384)

(31)

236

125

5

104

(0.8%)

6.9%

4.4%

0.16%

3.15%

Benefits paid Fair value of scheme assets at 31 December 2014

Amounts for the current and previous four periods

Fair value of assets

Experience adjustment on scheme assets Percentage of scheme assets Experience adjustment on scheme liabilities

–

(94)

–

–

309

Percentage of scheme liabilities

–

(2.0%)

–

–

6.60%

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

(732)

787

(734)

(716)

169

(13.3%)

17.1%

(14.0%)

(14.3%)

3.61%

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 2014 amounted to £251,000 (2013 - £214,000).

Page 51

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

10

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.

11

Tangible fixed assets

Group

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

Motor vehicles £’000

Total £’000 125,261

Cost or valuation At 1 January 2014

97,170

27,711

380

Additions

6,440

1,941

1

8,382

Disposals

(1,013)

(1,151)

(33)

(2,197)

102,597

28,501

348

131,446

Cost

76,095

28,501

348

104,944

Valuation (1997)

26,502

–

–

26,502

102,597

28,501

348

131,446

13,692

20,861

317

34,870

948

2,210

24

3,182

(231)

(867)

(33)

(1,131)

14,409

22,204

308

36,921

At 31 December 2014

88,188

6,297

40

94,525

At 31 December 2013

83,478

6,850

63

90,391

97,083

27,563

380

125,026

6,440

1,941

1

8,382

At 31 December 2014

Depreciation At 1 January 2014 Charge for year On disposals At 31 December 2014 Net book values

Charity Cost or valuation At 1 January 2014 Additions

(1,013)

(1,151)

(33)

(2,197)

102,510

28,353

348

131,211

Cost

76,502

28,353

348

105,203

Valuation (1997)

26,008

—

—

26,008

102,510

28,353

348

131,211

13,778

20,624

317

34,719

948

2,197

24

3,169

(231)

(867)

(33)

(1,131)

14,495

21,954

308

36,757

At 31 December 2014

88,015

6,399

40

94,454

At 31 December 2013

83,305

6,939

63

90,307

Disposals At 31 December 2014

Depreciation At 1 January 2014 Charge for year On disposals At 31 December 2014 Net book values

Page 52

Diocese of Westminster Annual Report & Accounts 2014

Notes to the accounts – 31 December 2014

11

Tangible fixed assets (continued)

Works of art, treasures and plate are not capitalised in these accounts. They are considered to be heritage assets for the purposes of the 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.

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

Post balance sheet events

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.

Included within functional properties of both the Charity and the Group above is a freehold building with a net book value of £1.75 million, the use of which was changed subsequent to the year end. Commencing during 2015, the property will be used rent free solely by one of the voluntary aided schools within the Roman Catholic Diocese of Westminister. As a direct consequence of this, the Charity will no longer be able to generate income from the property or dispose of it on the open market or put it to alternative use whilst occupation by the school, which may be indefinite, continues. As a result of this change in use, the net book value of the property subsequent to the year-end has been reduced to £nil.

Net gains on disposals

Capital commitments

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

At 31 December 2014 the Group and Charity had the following capital commitments:

Various of the Charity’s properties are subject to restrictions or covenants over their use and/or disposal.

Group and Charity Gain on disposal of All Saints Pastoral Centre Other gains

2014 £’000

2013 £’000

5,813

–

27

2

5,840

2

Group and Charity

2014 £’000

2013 £’000

1,913

1,145

Land and buildings – functional property . Contracted but not provided

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

Page 53

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

12

Investments

At 31 December 2014 investments comprised the following:

Group 2014 £’000

Group 2013 £’000

Charity 2014 £’000

Charity 2013 £’000

Listed investments

26,831

25,191

20,177

19,484

Investment properties

29,406

27,005

29,406

27,005

Subsidiary undertakings (note 3)

–

–

–

–

56,237

52,196

49,583

46,489

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 2014 the Group held 173,926 units (2013 – 174,395) in the Mutual Investment Fund, equivalent to 74% (2013 – 74%) of the total Fund. The market value of these units at 31 December 2014 amounted to £25,967,136 (2013 - £24,518,196) and their historical cost as at that date was £22,219,876 (2013 - £21,293,153).

At 31 December 2014 the Charity held 132,281 units (2013 – 137,971) in the Mutual Investment Fund, equivalent to 56% (2013 – 59%) of the total Fund. The market value of these units at 31 December 2014 amounted to £19,314,372 (2013 - £19,337,959 ) and their historical cost as at that date was £16,527,172 (2014 - £16,794,307).

The above results are net of investment managers’ fees charged indirectly through the unit holdings of £85,431 in 2014 and £108,636 in 2013. Fees paid to the investment managers directly during the year amounted to £nil (2013 - £20,000).

At 31 December 2014 the composition of the listed investments of the Mutual Investment Fund was as follows:

Group

2014 %

Fixed income

10.5

9.8

UK equities

26.3

31.3

Global equities

48.5

47.0

2013 %

Property

1.0

–

Alternative investment

2.5

2.3

Liquid assets (money market instruments and cash)

11.2

9.6

100.0

100.0

At 31 December 2014, 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 % 18.7

Value £ 6,515,764

24.1

8,395,844

Diocese of Westminster Annual Report & Accounts 2014

Notes to the accounts – 31 December 2014

Listed investments held at 31 December 2014 and their movements during the year were as follows: Group 2014 £’000

Group 2013 £’000

Charity 2014 £’000

Charity 2013 £’000 17,649

Market value 24,666

22,171

19,484

Additions

525

40

–

–

Disposals

(240)

(650)

(940)

(650)

At 1 January 2014

Net realised/unrealised gains during the year At 31 December 2014 Cash held for reinvestment

1,880

3,105

1,633

2,485

26,831

24,666

20,177

19,484

–

525

–

–

26,831

25,191

20,177

19,484

Investment properties held at 31 December 2014 and their movements during the year were as follows: Group and Charity

Total £’000

Market value At 1 January 2014 Additions Unrealised gains on revaluation during the year At 31 December 2014

27,005 486 1,915 29,406

Investment properties are included in the accounts at valuations carried out in 2008, 2010, 2011, 2012, 2013 and 2014. It is the aim of the Trustees 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 United Kingdom Generally Accepted Accounting Practice. Certain properties are stated at a valuation determined on an open market basis during 2008 by BNP Paribas Real Estate (formerly Atisreal UK), in January 2010 by Messrs Barnes Kirkwood & Woolf, Chartered Surveyors and in January 2011 and 2012 by Albright Surveyors Limited, Chartered Surveyors. In each of 2013 and 2014 Albright Surveyors Limited revalued five of the investment properties on an open market basis. These valuations were conducted in accordance with the Practice Statements issued by the Royal Institution of Chartered Surveyors as set out in the Appraisal and Valuation Manual dated September 1995 as amended. It is not possible to ascertain with accuracy the original cost of the investment properties, the majority of which were purchased many years ago. The Trustees are of the opinion that the costs involved in researching such information outweigh the value of disclosing it.

Page 55

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

13 Debtors Group 2014 £’000

Group 2013 £’000

Charity 2014 £’000

Charity 2013 £’000

2,040

1,337

2,284

1,403

311

501

280

487

School expenditure recoverable from the Department for Education, Local Education Authorities and contract advances (note 19)

6,115

5,884

6,115

5,884

Loan to Westminster Cathedral Choir School

136

136

136

136

Receivable within one year Sundry debtors Prepayments and accrued income

126

118

126

118

8,728

7,976

8,941

8,028

Loan to Westminster Cathedral Choir School

142

278

142

278

Amount due from the Society of Jesus

263

263

263

263

Other loans Receivable after more than one year

Loan to The Cardinal Hume Centre

339

339

339

339

9,472

8,856

9,685

8,908

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.

14

Creditors: amounts falling due within one year

School building projects (note 19)

Group 2014 £’000 6,860

Group 2013 £’000 4,540

Charity 2014 £’000 6,860

Charity 2013 £’000 4,540

Collections payable to third parties

1,253

1,224

1,253

1,224

228

218

228

218

39

29

39

29

1,309

1,309

1,309

1,309

Accruals and sundry creditors

973

847

1,054

777

Funds held on behalf of the Belarusian Catholic Mission

662

712

662

712

1,027

1,056

1,027

1,056

12,351

9,935

12,432

9,865

PAYE and national insurance 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 2014

Notes to the accounts – 31 December 2014

15

Restricted funds

Restricted funds comprise: 2014 £’000

2013 £’000

Charity Curial Parochial

20,197

13,684

124,052

121,324

144,249

135,008

7,814

7,372

152,063

142,380

Group Subsidiary entities-parochial

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

At 1 January 2014 £’000 844

Expenditure, Incoming gains, losses resources and transfers £’000 £’000 22 2

At 31 December 2014 £’000 864

1,299

72

23

1,348

Poor fund

434

17

1

450

Ecclesiastical education fund

106

9

26

89

Masses funds

Trinity fund

266

27

–

293

Wellesley Colley fund

228

11

1

238

Harrow education fund

130

1

1

130

New school building fund

515

25

2

538

Archbishop’s fund

235

–

–

235 1,029

1,029

–

–

St Joseph’s pastoral centre

SPEC funds

189

10

14

185

Property repairs fund

123

6

–

129

1,105

78

32

1,151

137

6

1

142

2,162

188

145

2,205

126

8

10

124

4,002

6,161

(110)

10,273

Post ordination studies fund Missions fund St John Southworth fund Filipino Chaplaincy fund Growing in Faith fund Other restricted funds

754

26

6

774

13,684

6,667

154

20,197

Page 57

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

15

Restricted funds (continued)

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.

• 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.

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

• Other restricted funds Other restricted funds are for

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

Parochial restricted funds

• Trinity fund This fund is for major projects within poor parishes.

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

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

• New school building fund This fund is for school building projects in the Diocese.

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

• SPEC funds These funds represent 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

general charitable purposes of the Diocese.

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

Transfers from the Parochial restricted funds to the Curial restricted funds represent the amounts received prior to 31 December 2013 specifically for parish use from monies raised as part of the Growing in Faith initiative. These monies have been transferred back to the Curial restricted funds where they will be administered until such time as particular projects have been identified within individual parishes at which point monies will be transfered to the relevant parish.

Diocese of Westminster Annual Report & Accounts 2014

Notes to the accounts – 31 December 2014

16

Designated funds

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

Schools projects

At 1 January 2014 £’000 1,186

Other designated funds

New designations £’000 –

At 31 December 2014 £’000 1,186

Utilised/released £’000 –

716

3

(60)

659

1,902

3

(60)

1,845

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.

17

Tangible fixed assets fund

Group and Charity At 1 January 2014 Net movement in the year At 31 December 2014

£’000 17,307 1,952 19,259

The fixed assets fund represents the net book value of the tangible fixed assets included in the Curial funds.

18

Analysis of net assets between funds

Group

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

Total funds £’000

Parochial funds Restricted funds £’000

Total 2014 £’000

Fund balances at 31 December 2014 are represented by: Tangible fixed assets

19,259

19,259

75,266

94,525

Investments

14,165

8,599

22,764

33,473

56,237

1,934

11,598

13,532

23,127

36,659

Total net assets excluding pension liability

35,358

20,197

55,555

131,866

187,421

Pension liability

(1,662)

–

(1,662)

–

(1,662)

Total net assets

33,696

20,197

53,893

131,866

185,759

Unrestricted funds £’000

Restricted funds £’000

Total 2014 £’000

Tangible fixed assets

19,259

75,195

94,454

Investments

14,165

35,418

49,583

1,934

33,636

35,570

Total net assets excluding pension liability

35,358

144,249

179,607

Pension liability

(1,662)

–

(1,662)

Total net assets

33,696

144,249

177,945

Net current assets

Charity

Fund balances at 31 December 2014 are represented by:

Net current assets

Page 59

2014 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2014

19

School and academy building projects

The Charity is the legal owner of properties comprising voluntary aided schools, academies and two independent schools within the Diocese. As explained in the principal accounting policies these properties are valued at £nil for the purpose of these accounts. The responsibility for the improvement, extension and repair of the buildings lies with the governors. Grants towards such work are paid to the governors by the Department for Education (DfE) and the Local Education Authorities. As the governors are responsible for incurring such expenditure and receiving the associated grant income, this income and expenditure is not included in these accounts. However, the Charity is closely involved in providing practical assistance to Catholic schools and academies in the Diocese of Westminster and acts as an agent for the governing bodies in administering building contracts and recovering grants and contributions towards cost.

From time to time the Charity holds grant income received from DfE on behalf of schools and academies, as custodian trustee. At 31 December 2014 this amounted to £nil (2013 - £133,914).

Number of projects

2014 279

2013 212

2014 £’000

2013 £’000

32,505

33,084

(31,034)

(29,623)

Net governors’ liability

1,471

3,461

Amounts owing on contracts at 31 December 2014 (note 14)

6,860

4,540

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

6,115

5,884

Total amount spent Less: grants received

During the year ended 31 December 2014, the Charity acted as an agent for governors on school building projects as summarised right.

20

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.

Page 60

Diocese of Westminster Annual Report & Accounts 2014

Notes to the accounts – 31 December 2014

21

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 2014 of each of the charities is given below. Audited accounts of each charity will be filed with the Charity Commission.

The Moorfields Charity £’000 133

Westminster Cathedral Trust £’000 339

Total 2014 £’000 472

Total 2013 £’000 930

Resources expended

(27)

(406)

(433)

(1,478)

Net incoming/(outgoing) resources for the year

106

(67)

39

(548)

45

202

247

621

151

135

286

73

2,390

5,255

7,645

7,359

Incoming resources

Net gains on investments Net movement in funds Net assets

22

Contingent liability

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

Page 61

2014 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 or 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

Page 62

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

Diocese of Westminster Annual Report & Accounts 2014

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

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Part of SURREY RICHMOND

Spelthorne

Page 63

Keep in touch with the Diocese of Westminster On our website Our website has the latest news about the work and mission of the Catholic Church in the diocese. It also includes full listings of all Catholic parishes and schools and hospital chaplaincies. You can visit our website at www.rcdow.org.uk

Diocesan Year Book The 2016 Diocesan Year Book contains full listings of Catholic parishes, priests, schools and societies. To be published in November 2015, it also includes the 2016 Liturgical Calendar. To order a copy please contact wyb@rcdow.org.uk

On Facebook www.facebook.com/diocese.westminster On Twitter twitter.com/RCWestminster Westminster Record The Westminster Record is the newspaper for the Diocese of Westminster. Published every month, it includes news, features and photographs reflecting the mission and life of Catholic parishes, schools and people in the diocese. The Westminster Record costs just 20p, and can be bought in most parishes in the diocese.

Westminster Roman Catholic Diocesan Trust

Annual Report & Accounts 2014 Produced by Communications OfďŹ ce of the Diocese of Westminster Proofreading and editorial assistance: John Scott and Dylan Parry.

Printed by Newnorth Print Ltd. Designed by GADS Limited Diocese of Westminster 2014

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