Annual Report & Accounts 2016 by RCWestminster

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www. Westminster Roman Catholic Diocesan Trust Annual Report & Accounts 2016

2018

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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, schools and chaplaincies. You can visit our website at www.rcdow.org.uk On Facebook www.facebook.com/diocese.westminster On Twitter twitter.com/RCWestminster On Instagram @rcwestminster Westminster Record The Westminster Record is the newspaper for the Diocese of Westminster. Published every month, it includes news, features and photographs reflecting the mission and life of Catholic parishes, schools and people in the diocese. The Westminster Record costs just 20p, and can be bought in most parishes in the diocese. Westminster Year Book The 2018 Westminster Year Book contains full listings of Catholic parishes, priests, schools and societies. To be published in November 2017, it also includes the 2018 Liturgical Calendar. To order a copy please contact wyb@rcdow.org.uk

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Westminster Roman Catholic Diocesan Trust

Annual Report & Accounts 2016

2016 Annual Report & Accounts Diocese of Westminster

About the Diocese of Westminster

How to support 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 and the Borough of Hillingdon to the west, the County of Hertfordshire to the north and the Borough of Spelthorne in Surrey.

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:

Since the restoration of the Catholic Hierarchy in 1850, its bishop has often been appointed 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 reflects wide 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 Archbishop’s Council assists the Archbishop in the governance of the diocese. It is comprised of the Archbishop, the Auxiliary Bishops, the Vicar General, the Chairman of the Council of Priests, the Private Secretary and the Chief Operating Officer/Financial Secretary.

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

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

COO/Financial Secretary, Diocese of Westminster, 46 Francis Street, London SW1P 1QN

with financial problems)

Email: PaoloC@rcdow.org.uk Tel: 020 7798 9036

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

The Diocese of Westminster

North Hertfordshire

Stevenage East Hertfordshire

HERTFORDSHIRE Welwyn

St Albans

Dacorum

Hatfield Broxbourne

Watford

Hertsmere ENFIELD

Three Rivers BARNET HARROW

HARINGEY

BRENT

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

Charity Registration Number 233699

HILLINGDON

CAMDEN

CITY

WESTMINSTER

HOUNSLOW HAMMERSMITH & FULHAM

SURREY

Spelthorne

RICHMOND

ISLINGTON TOWER

EALING

Part of

HACKNEY

KENSINGTON & CHELSEA

HAMLETS

Diocese of Westminster Annual Report & Accounts 2016

Contents

Annual Review Reference and administrative information

Reports 2

Introduction by Cardinal Vincent Nichols, Archbishop of Westminster 3

Report of the Directors of the Corporate Trustee

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

Purpose of the Charity 8

Accounts

Parishes 10 Schools 12 Outreach/Caritas 14 Volunteers 16 Growing in Faith 18 Financials 20

Page 1

Consolidated statement of financial activities

Consolidated balance sheet

Charity balance sheet

Consolidated statement of cash flows

Principal accounting policies

Notes to the accounts

Diocesan Committees

Diocese of Westminster Annual Report & Accounts 2016

Reference and administrative information Trustee

Audit and Risk Committee

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

Miss L Ferrar Rt Rev J Sherrington Mr K Ingram

Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL

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

Principal investment managers

Rt Rev J Sherrington Rt Rev N Hudson

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

Rt Rev P McAleenan Rt Rev J Wilson Rt Rev Mgr T Egan Rt Rev Mgr J O’Boyle

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

Rt Rev Mgr M Hayes Lord D Brennan QC Miss L Ferrar Rt Hon R Kelly Mr C Kemball

Principal bankers

Mr A Ndoca

Mr P Camoletto CPA

HSBC Bank plc 69 Pall Mall London SW1Y 5EY

Finance Director

Charity solicitors

Mrs M Luiz MSc

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

COO/Financial Secretary

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

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

Charity registration number 233699

Page 2

Diocese of Westminster Annual Report & Accounts 2016

Cardinal’s Introduction

‘Jesus Christ is the face of the Father’s mercy.’ With these words, Pope Francis opened the Bull of Indiction which announced the Year of Mercy. This Extra-ordinary Jubilee Year began on 8th December, 2015, the Solemnity of the Immaculate Conception, and closed on 20th November, 2016, the Solemnity of Christ the King. Jesus radiates the truth about God whom we call our Father. He proclaims that this Father loves us and entrusts to us as our mission: the service of his people, his creation. Our mission is to serve each person we encounter, of whatever race, religious affiliation or state of life, and to help them to live in a manner that is consonant with their innate dignity, as children of the one Father. In this task we must be aware that the well-being of every person goes beyond the individual. We exist and flourish only in relationships, despite the individualism of our culture. Enhancing and promoting good relationships among people and communities of all backgrounds, thereby building a strong society, is so much part of our mission, too. At the heart of this mission is the proclamation of Jesus as Lord, for through his presence and grace our service of others is to be effective and lifegiving. The Church, then, is the work of Christ. He is with us always in our search for the truth, in our attempts to live by that truth and to live always joyfully in the hope that he gives us. He is present in our love and service for others, especially for those most in need, who are closest to his heart. In 2016, we fully launched Proclaim Westminster to encourage our parishes to proclaim the Good News of the Gospel to others in a truly missionary spirit. As they deepen their own faith, parishioners are inspired to reach out to their communities in service of their neighbours, especially those who suffer from any kind of physical or spiritual poverty. These acts of love and solidarity have taken on a special meaning in 2017 as we join with many others to care for those in our midst who have suffered from a succession of terrorist attacks and catastrophic tragedies here in London. Pope Francis shows us the way: ‘At times we are called to gaze even more attentively on mercy so that we may become a more effective sign of the Father’s action in our lives.’ It is by gazing on Jesus, who radiates depth, beauty, and all that is best in the human person, that our witness can grow stronger and become more effective. This Annual Report shows us some of the particular ways in which so many in the diocese seek to respond, in faith and with generosity, to the needs they see around them. I am most grateful to them all. I extend my gratitude, too, to those who have compiled this report and the Annual Accounts.

His Eminence Cardinal Vincent Nichols, Archbishop of Westminster

Page 3

Diocese of Westminster Annual Report & Accounts 2016 2016 â&#x20AC;&#x2026; Annual Report & Accounts Diocese of Westminster

a passion for the human person, for the well-being and dignity of every human person, that they can know and realise something of their inherent greatness.

Jesus Christ is the revelation, the

showing forth, of all that is best in the human person. He is the fulfilment of who we are. He is the truth of our humanity. The Church, then, is the work of Christ who is with us, as Catholics, always in our search for the truth, in our attempts to live by that truth and to live always joyfully in the hope that he gives us, in our expressions of love and service for others, especially for those most in need. This Church exists in and through our families, our schools and our parishes. Page 4

Diocese of Westminster Annual Report & Accounts 2016

Those most in need in

society

Serving the dignity of each

person

Page 5 (John 10.9) â&#x20AC;&#x2DC;I am the gate. Whoever enters through me will be saved.â&#x20AC;&#x2122;

Diocese of Westminster Annual Report & Accounts 2016

Our expressions of love and

service

for others

Diocese of Westminster Annual Report & Accounts 2016

Purpose of the Charity The Trust Deed of November 1940 sets out the purpose of the Westminster Roman Catholic Diocesan Trust (WRCDT) charity as the advancement of the Catholic religion within the diocese. The advancement of the Roman Catholic religion is most effectively achieved when Catholics, fully living their faith, extend the love of God to others around them, in their families, schools, local communities and in the care of the stranger. It is a practical faith that reaches out to care for neighbours in need, to build community cohesion, to bring about peace and reconciliation where they are needed, and to work for the common good of society, all the while respecting every personâ&#x20AC;&#x2122;s intrinsic human dignity. A diocese is a district or an area under the pastoral care of a bishop. The Diocese of Westminster covers the boroughs of London north of the Thames and west of the Lea River, the Borough of Spellthorne in Surrey, and the County of Hertfordshire. Living within the diocese are approximately half-a-million people who identify themselves as Catholics. Pastoral care for these Catholics, as well as people of all faiths and none, living in these communities, is primarily exercised through the 214 parishes, 215 schools, and social outreach agencies coordinated by Caritas Westminster.

Parishes are the focal point of each community. It is the place where Catholics come together each Sunday to worship, and where children are educated in the faith. It is also the base from which the community reaches out to others of all faiths and none in their local area, caring for those in need, working towards the common good and celebrating with neighbours. Schools provide the environment where children learn and develop across a wide spectrum of disciplines, some more obvious, such as the academic disciplines, sports, music, and practical subjects. It is also where students learn to collaborate with others for the common good of all, becoming confident, mature citizens working for the good of society. Outreach Caritas Westminster is the social outreach arm of the diocese. Through its own direct agencies, such as Caritas St Josephâ&#x20AC;&#x2122;s and Bakhita House, as well as enabling initiatives in parishes and schools, Caritas works towards serving the needs of some of the most vulnerable members of society, sharing the love of God in practical ways, such as feeding the hungry, giving shelter to the homeless, helping rehabilitate victims of human trafficking, and enabling those with intellectual difficulties to grow.

439,738 who identify as Catholic in the diocese

91,774 Children in our schools Page 8

146,971

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

Average number of people who attend Mass each Sunday

838 Caritas and Parish Projects

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

Over

40,000

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

Volunteering roles

Every person is called to serve others and contribute to the good of society in some unique way. A Catholic education forms the character of each student and teaches the values that build society, by helping each young person to discern the way in which he or she is called to serve. Whilst Government metrics are important in evaluating Catholic education, they are only part of the success of our schools.

Page 9

Revelation

Diocese of Westminster Annual Report & Accounts 2016

Parishes 2015 6,069

2016 5,781

2,414

2,169

617

598

Babies

Love

Children aged from 1 to 7 years

Persons over the age of 7 years

1,099

Joy 8,548 Baptisms

Sacraments First Holy Communion

8,892 8,480

Students learning about importance of marriage

5,423

2016 2015

Truth 493 416

Confirmations Adults

School-age children

2015 5,548 in412 20152016 399 2015 2016

Family

8,892

1,350

First Holy Communions

Registering for Adult Faith events

Page 10

Diocese of Westminster Annual Report & Accounts 2016

412

399 2015

Hope

2016

Charity

625

412

Enrolled in Safeguarding online training

Received into the church

531 146,971 Sunday Mass attendance

Proclaim initiatives

Jesus Christ Page 11

Mini Vinnies* at work at St Paul’s, Wood Green

Diocese of Westminster Annual Report & Accounts 2016

Schools

The school has an elected council of ‘Mini Vinnies’ to encourage young people to tackle poverty and support those in need. Mini Vinnies have raised £500 for ‘Save the Children’ foundation to help with refugee crisis. The children also help at the local homeless shelter to set up beds and prepare the parish hall for the arrival of guests.

91,774

*A programme for primary school children who, with the encouragement of their parents and schools, are encouraged to undertake good works and contribute to the future of society

Children in our schools Other Ethnic group

5.2%

Chinese

0.4%

Mission

St Dominic’s Harrow walk for local hospice Students from St Dominic’s Sixth Form College joined the Walk for St Luke’s hospice during the year of mercy, raising £3,087 to support the families of those who are dying from a terminal illness.

Not Known

1.1%

Black/ Black British

White British

33%

19.2%

St Michael’s raise fund for neo-natal unit Former students at St Michael’s High School raised over £1,000 for the neo-natal unit at the Luton and Dunstable Hospital on the occasion of the school’s 60th anniversary.

Asian/ Asian British

8.2%

White Irish

4.5%

Mixed Dual

9.9%

White Other

Irish/Gypsy/Roma/ Heritage

0.3%

Ethnic groups

18.2%

Common identity Page 12

St Charles teacher mentors young teachers in Cambodia Jade Cahill, a teacher at St Charles Primary School, spent a month in Cambodia mentoring young teachers in the port town of Siem Reap.

Team work

Cooperation 96.9%

Partnership

All schools

(Primary & Secondary)

Good or Outstanding

Ofsted Judgements

Primary outstanding %

good %

requires improvement %

2015

2016

2015

2016

2015

25.2

32.5

62.2

63.6

11.8

2016

3.9

Secondary

38.1

41.5

58.5

53.0

8.9

All schools (Primary & Secondary)

28.0

34.4

62.5

60.3

11.1

3.1

In 2015, one primary school was in Special Measures. In 2016, after a new leadership team implemented changes, it was rated Good by Ofsted. There are currently no schools in Special Measures /Inadequate.

Examinations: Overall 75% achieved 5+ A*-C (national average 62%)

Page 13

St Thomas More, Wood Green students cycle for Teach First St Thomas More students and teachers took part in the Prudential Ride London 2016, to raise money for â&#x20AC;&#x2DC;Teach Firstâ&#x20AC;&#x2122;, a charity that tackles educational inequality by placing inspiring teachers in challenging classrooms across England and Wales.

Diocese of Westminster Annual Report & Accounts 2016

Outreach/Caritas

207

Adults attend Caritas St Joseph’s

Dignity

Grants awarded 14 Project Grants 18 Crisis Grants Crisis grants

2016 2015

18 in 2015

‘

Caritas Bakhita House has the ability to make plants like me grow through the cracks of the sidewalk. I see myself an improved individual, spiritually, morally, a better person, ready to face the realities of life. I will sing and thank Bakhita.

mental and physical health ‘My was poor when I arrived at

Caritas Bakhita House but by the time I left I was a different person. I no longer feel broken.

‘

Love

Bakhita House guests

‘

Adults attend xxx 219 Caritas St Joseph’s in 2016 201 in 2015

Inclusiveness

Crisis grants are hardship grants for individuals and families in need, where a small sum of money could make a significant difference. In 2016, grants were given for:

• Rent, fuel bills and children’s expenses to families struggling often due to a medical crisis, house move or other change in circumstances • White goods or furniture, often following homelessness • Very basic needs for people with no recourse to public funds • Rent to avert eviction and homelessness, during a period of crisis • Other items including school lunch money, driving lessons to enable employment

Service

Page 14

Disability Support Groups (Including St Josephs Clubs) Hounslow Connect @ students last year, in 2016. sessions a day, art in the morning and dance in the afternoon. Open to all. volunteer, tutors and dedicated member of staff.

11 2

Charity

838

Parishes that run or support a local winter night

Caritas and Parish Projects in 2016 820 in 2015

Parishes with poverty-alleviating initiatives in 2016 71 in 2015

Page 15

shelter 58 in 2015

Development hubs

5 in 2016 4 in 2015

Works of Mercy

Altar servers, Bookkeepers, Caritas/Social Justice, night shelter, food bank Diocese of Westminster Annual Report & Accounts 2016 Communion, Finance Committee members, Flower arrangers, Gardeners a Other Committees, Parish social events organisers and volunteers, Parish Ushers/cash collection, Youth workers, Other administration in the office, volunteers, Safeguarding representatives, Music Ministry, Altar servers, Bo Catechists, Church Cleaners, Extraordinary Ministers of Holy Communion, keepers, Gift Aid clerks, Greeters, Hospitality, coffee after Mass, Other Com members, Proclaim teams, Readers, Sacristans/Sacristy volunteers, Usher cleaners/cooks/helpers, Visitors to the sick and housebound, Other volunt Caritas/Social Justice, night shelter, food bank, Cash counters, Catechists, Committee members, Flower arrangers, Gardeners and grounds keepers, social events organisers and volunteers, Parish Council members, Proclaim workers, Other administration in the office, Presbytery cleaners/cooks/hel representatives, Music Ministry, Altar servers, Bookkeepers, Caritas/Social Extraordinary Ministers of Holy Communion, Finance Committee member Hospitality, coffee after Mass, Other Committees, Parish social events orga Sacristans/Sacristy volunteers, Ushers/cash collection, Youth workers, Oth the sick and housebound, Other volunteers, Safeguarding representatives How contributed food bank, Cash counters, Catechists, Church Cleaners, Extraordinary Min Gardeners and grounds keepers, Gift Aid clerks, Greeters, Hospitality, coffe Parish Council members, Proclaim teams, Readers, Sacristans/Sacristy vol office, Presbytery Liturgy cleaners/cooks/helpers, Visitors to the sick and housebo servers, Bookkeepers, Caritas/Social Justice, night shelter, food bank, Cash Communion, Finance Committee members, Flower arrangers, Gardeners a Supporting parish Other Committees, Parish socialcommunity events organisers and volunteers, Parish Ushers/cash collection, Youth workers, Other administration in the office, volunteers, Safeguarding Music Ministry, Altar servers, Bo Socialrepresentatives, justice/outreach/hospitality Catechists, Church Cleaners, Extraordinary Ministers of Holy Communion, keepers, Gift Aid clerks, Greeters, Hospitality, coffee after Mass, Other Com members,Education Proclaim teams, Readers, Sacristans/Sacristy volunteers, Usher cleaners/cooks/helpers, Visitors to the sick and housebound, Other volunt Caritas/Social Justice, night shelter, food bank, Cash counters, Catechists, Safeguarding Committee members, Flower arrangers, Gardeners and grounds keepers, social events organisers and volunteers, Parish Council members, Proclaim workers, Other administration inOther the office, Presbytery cleaners/cooks/hel representatives, Music Ministry, Altar servers, Bookkeepers, Caritas/Social Extraordinary Ministers of Holy Communion, Finance Committee member Page Hospitality, coffee after Mass, Other 16Committees, Parish social events orga

Volunteers

Over

40,000 roles

volunteers 37%

32%

13%

14% 1% 3%

k, Cash counters, Catechists, Church Cleaners, Extraordinary Ministers of H Diocese of Westminster Annual Report & Accounts 2016 and grounds keepers, Gift Aid clerks, Greeters, Hospitality, coffee after Ma Council members, Proclaim teams, Readers, Sacristans/Sacristy voluntee Presbytery cleaners/cooks/helpers, Visitors to the sick and housebound, O Social IsolationJustice, night shelter, food bank, Cash counter ookkeepers, Caritas/Social New Southgate Drop-in centre Flower arrangers, Gardeners and grounds , Finance Committee members, 10 guestsevents organisers and volunteers, Parish Council mmittees, Parish social 12 volunteers once a week rs/cash collection, Youth workers, Other administration in the office, Presb ‘Coming to the drop in gives me a sense of Liturgy teers, Safeguarding representatives, Music Ministry, Altar servers, Bookke purpose, since my husband and daughter , Church Cleaners, Extraordinary Mrs Tess Doran of Finance died, a reason to get out of the house Ministers of Holy Communion, and meet people. Maria, guest. Mary andOther St MichaelCommittees Church, Gift Aid clerks, Greeters, Hospitality, coffee afterStMass, Commercial Road, was awarded m teams, Readers, volunteers, Ushers/cash collection, ‘We are open toSacristans/Sacristy anyone who wants a Benemerenti* for her faithful service or needs lpers, Visitorscompanionship to the sick and housebound, Other volunteers, Safeguardin with any issue’ of over 47 years to the parish as l Justice, nighthelp shelter, food bank, Cash counters, Catechists, Church Clean Parish Priest. sacristan, preparing the church rs, Flower arrangers, Gardeners and grounds keepers, Gift Aid clerks, Gree for Masses and other anisers and volunteers, Parish Council members, Proclaim teams, Readers services. her administration in the office, Presbytery cleaners/cooks/helpers, Visitor s, Music Ministry, Altar servers, Bookkeepers, Caritas/Social Justice, night nisters of Holy Communion, Finance Committee members, Flower arrange ee after Mass, Other Committees, Parish social events organisers and volu lunteers, Ushers/cash collection, Youth workers, Other administration in t ound, Other volunteers, Safeguarding School Governor representatives, Music Ministry, Alta h counters, Catechists, Church Cleaners, Extraordinary Ministers of Holy Mrs Linda Graham from and grounds keepers, GiftinAid clerks, Greeters, Hospitality, coffee after Ma St Peter’s Church Hatfield was awarded a Benemerenti* for her contributions Council members, Proclaim teams, Readers, Sacristans/Sacristy voluntee to Catholic Education. She served for 10 years, first as a Foundation Governor at St Philip Howard to the sick and housebound, O Presbytery cleaners/cooks/helpers, Visitors Catholic Primary School from 1996, and then at Nicholas ookkeepers, Caritas/Social Justice, night food bank, Cash counter Breakspear Catholic School in St Albans. As Chairshelter, of Governors at Nicholas Breakspear, she was proactive in , Finance Committee members, Flower arrangers, Gardeners and grounds raising standards at the school. mmittees, Parish social events organisers and volunteers, Parish Council ‘I have been privileged to work with two wonderful Some rs/cash collection, Youth workers, Other administration in the office, Presb parishioners schools whose aims are to ensure that every child can onlyservers, contribute Bookke teers, Safeguarding representatives, Music Ministry, Altar reaches their full potential. The rewards are one hour each month in knowing that you are helping , Church Cleaners,great Extraordinary Ministers of Holy Communion, Finance while others contribute the next generation.’ several hours each week. Gift Aid clerks, Greeters, Hospitality, coffee after Mass, Other Committees Linda Graham. Whatever their level of commitment, our m teams, Readers, Sacristans/Sacristy volunteers, Ushers/cash collection, volunteers show that giving freely lpers, Visitors to the sick and housebound, Other volunteers, Safeguardin of their l Justice, night shelter, food bank, Cash counters, Catechists, time and talents inChurch the service Clean *The Benemerenti medal is an honour of others is anAid integral part of Gree awarded by the Pope to individuals for rs, Flower arrangers, Gardeners and grounds keepers, Gift clerks, service to the Catholic Church. Page parish life. 17 members, Proclaim teams, Readers anisers and volunteers, Parish Council

Diocese of Westminster Annual Report & Accounts 2016

Growing in Faith supports the vision for the future of our diocese

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

Key highlights

£35 Million 19,670 £25,206,963

Pledged Gifts and pledges Cash to date

Priest Training (Orders)

Caritas Westminster

£0.3m

£6m

Trinity Fund

£0.3m Sick & Retired Clergy (Orders)

£1.5m

Post Ordination Training

Number of parishes applying for grants

14 50 64 86 Amount given to religious orders for their formation and retired priests’ care Then we need an infographic on S&RP – £10 million out of £37 million dedicated for care of priests 6 new accommodation schemes planned 2 nearing design phase £X projected funding needed to get them done An infographic on Caritas – £X funding from GiF for Caritas Westminster

2013

2014

2015

2016

Examples of local projects ayes – the employment H of a catechist is very much needed. There were 127 participants in the First Holy Communion programme and 80 Confirmation candidates, as well as candidates preparing for the RCIA, for Baptism, or for Marriage.

Parish Projects

£35m

£11.2m

Breakdown of intended uses of GIF funds

Priest Training (Diocese)

£5m

£0.5m Sick & Retired Clergy (Diocese)

£10.2m

wiss Cottage – The parish has S begun work on a purpose built parish hall which is expected to be completed in September 2017.

Page 18

Pinner – employment of a Pastoral Worker to care for the elderly, sick and housebound. Bunhill Row – providing a (disabled) lift to help elderly parishioners to attend Mass and events in the parish hall, who are deterred from attending by the steep steps leading down to the church.

Diocese of Westminster Annual Report & Accounts 2016

£5.0m

Diocesan Priests’ training

The 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

The cost of fundraising*

£3.8m

represents

10.8%

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

of the total amount that has been pledged

Funds utilised to date

£1m

Pledged funds available for future utilisation

£5m

Page 19

Amount pledged for the care of sick & retired clergy

£11.7m

Diocese of Westminster Annual Report & Accounts 2016

Consolidated income and expenditure Income Parishes 2,3

Parishes 2,3

£39.1m

Curia 1

£15.9m

2016

2015

£17.0m

Curia Growing in Faith

£8.0m

£5.9m

Expenditure Parishes 1

Parishes 1

£32.4m

£31.9m

Curia 3

£20.1m

2016

2015

Curia Growing in Faith 2

£13.7m Curia Growing in Faith 2

£4.8m

£1.0m

Net income before investment gains Parishes

£6.7m £7.2m

2016 2015 Curia 2016 2015

(£4.2m)

Curia GiF

£3.2m £4.9m

£3.3m

(£1.0m) £8.2m

1. Includes assessment transferred from parishes to curia (£5.3M in 2016 and £5.2M in 2015) 2. Includes Growing in Faith transfers from curia to parishes (£1.7M in 2016 and £0.9M in 2015) 3. Includes other transfers from curia to parishes (£0.1M in 2016 and £0.4M in 2015)

Page 20

Diocese of Westminster Annual Report & Accounts 2016

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

2016

2015

% 2016

26,827

25,749

68.7

Parish activities

6,376

6,782

16.3

Donations and legacies

2016

Investment income

2,003

2,002

5.1

Transfers from curia

1,815

1,286

4.6

Rents from functional property

1,426

1,296

3.7

Trading activities

620

649

1.6

Disposal of assets

1,332

0.0

39,068

39,096

100.0

Expediture by type (£’000)

2016

2015

% 2016

Non-clergy salaries and housekeeping

6,537

6,313

20.2

Diocesan assessment

5,276

5,228

16.3

Property repairs and renewals

3,885

3,814

12.0

Other

2,987

3,116

9.2

Total

Expenditure

2016

Council tax and utilities

2,945

2,892

9.1

Liturgical, candles and repository

2,740

2,657

8.5

Depreciation

2,663

2,760

8.2

Clergy stipends

2,303

2,179

7.1

Parish activities

1,325

1,245

4.1

Donations and grants

1,215

1,143

3.8

481

503

1.5

32,357

31,850

100.0

Costs of generating trading activities Total

Page 21

Diocese of Westminster Annual Report & Accounts 2016

33 19 18 1 1051

231.76 23,892 33.51 231.76 23,892 33 44

7 226

32,65222,652 32,555 32,652 14 336,761 32,555 123 2

Curia income and expenditure

226

32,652

32,555

32,65

2 12,452

Income Income by type (£’000)

2016

2015

% 2016

15,294

9,414

63.9

Diocesan assessment

5,276

5,228

22.1

Income from charitable activities

1,556

1,963

6.5

Investment income

961

511

4.0

Rents from functional property

575

736

2.4

Trading activities

134

135

0.6

Assessment for non-consolidated parishes

121

119

0.5

–

4,832

0.0

23,917

22,938

100.0

2016

2015

% 2016

Donations and legacies

2016

Disposal of assets Total

Expenditure Expenditure by type (£’000)

2016

63 2,633 23.107

82,658

–

30.6

3,559

17.5

Growing in Faith projects

3,034

151

12.2

Administration

2,839

3,258

11.4

Transfers to parishes

1,815

1,286

7.3

Clergy and consecrated life

1,277

1,241

5.1

Education and formation

1,253

1,227

5.0

Auxiliaries and vicar general

789

774

3.2

Fundraising trading and other

704

549

2.8

National bodies

389

355

1.5

Communication and safeguarding

341

282

1.4

Archbishop’s office and house

339

344

1.4

Bank loan interest

147

–

0.6

–

1,662

0.0

24,937

14,688

100.0

Total

32,652

19 32,652

7,645 4,365

Impairment of tangible fixed assets

32.42 32,652 885,311 32,652

School projects Pastoral and related work

336,761

32,652 432,972 32,652 32,652 32,652 32,652 34 432,972 32,65278 32,652 32,652 32,652 32,652 32,652 32,555 901432,972 336,761

3 432, 5 32,5

432,972 345,31 421,972 432,97 432,972 32,652 432,972 33 432,972 32,652 5 12.68 936,76132,652

32,652

367

113

32,652

Page 22

32,652

32,652 226

32,652

336,761 32,652

226 336,769

113

32,555

978 34 64 34 12.38 12 312,7 978

65 23,892 56 34,124 231.76 92 7,321 34,124 231.76 12.62 32,652 12 34,124 226 56 235 34,124 11.98 34,124 32,652 23,892 23,8 56 33 89.43 23,892 33.51 231.76 39.34 5,743 72,671 133 23,892 65 34,124 56 65 32.0 34,124345,311 45 459 12.62 33 3,354 23,89 32.02 23,892 32,991 45 33.51 23.78 347 65 15 459 32.02 231.76 34,124 23 1 523 11.98 5 3 6 345,31 45 6 136 12,541 14 123 12.62 4 345,3 5 32,6 34 112,3 23 53 32.02

32,652

113 113

336,761

456

32,652

32,555

32,55532,652

113

32,555

227

32,652

32,555

226

32,555

336,761

113

32,652

336.761

2 113

32,555

32,652

113

32,652 32,652 32,652

32.02

32,652

32,555 32

32,652 32,555

113

32,652

234,765

32,555

32.02

32,652

126

12 32,652

123,983

32,555

32,652336,76132,652 32,555

32,652

32,652 32.02

113 336,761

7 32,652 32,555

37,652 32,652 Diocese Annual Report & Accounts 2016 32,555of Westminster 32,652 32,555

3,456

336,76

32,652 32,555

Westminster Roman Catholic Diocesan Trust

5 45

39, 14

Annual Accounts 2016

63 32. 34 113

44 72,652 128 16.72 12 65 32.55 19 8 8 18 12 32.5556 14545 37,652 432,972 19 231.76 32.5 345,311 42,652 222 125,344 15 8 43.99 32,6 34 12,318 56 32,652 32.55 231.76 226 32,652 32,652 32,652 56 55123 53 40 34,124 32,662 34 33 16 432,972 432,972 14 113 893 345,31132.55 32,652 432,972 32.55 14.54 12,537

24 14

32,555

82,551

32,523

432,972 226 432,972 336,761 336,761

113 32,555

336,761

32,652 32,555 32,652

32,555

336,761 1,345.234 32,555

32,555

336,761

32.02 32,555

32,555

16 55 14

32,555

113

32,555

65 32,555 34 12

32,652

14 32,555 32,652

11332,555

502

336,761 32,555

432,972

32,555

14 336,7

5 345,311 32.55 56 123 432,972 231.76 37,652 345,311 231.76 432,972 72 32.55 34,124 345,311 432,9 3 32,652 32.55 127,985 432,972 11 123 5

113 ,972 555 32,652 32,555 32,652 11432,972 32,555

3336,761 226

66.54 32,652

336,76132,555

336,761

32,652

32,555

113

32,555

32,652176,761

32,652 336,761 113 226

32,555

347

Page 23

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32,555 836,761

336,7

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

Religious and Pastoral Services provided through Parishes and Chaplaincies

Introduction The Directors of the Corporate Trustee (i.e. the Trustees) present their statutory report together with the consolidated accounts of Westminster Roman Catholic Diocesan Trust (the Charity) for the year ended 31 December 2016.

Parishes are communities whose daily activities contribute, both directly and indirectly, to the moral and spiritual wellbeing of everyone living and working in them. They are hugely diverse in their culture and their resident population (one particular parish has nearly 100 nationalities), and also in their individual needs. Where they do not differ, however, is in having a place of worship where parishioners can gather to pray, attend Mass each week and conduct sacramental ceremonies (such as baptisms, weddings and funerals), and which provides a solid foundation for carrying out important and necessary social and pastoral work as a practical expression of the Catholic faith.

The accounts have been prepared in accordance with the accounting policies on pages 49 to 53 of the attached accounts and comply with the Charity’s Trust Deed, with applicable laws and applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and with the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

All places of worship are open to the general public for prayer, for quiet and peaceful reflection, for access to burial grounds, and to experience the rich history and beauty of their architecture and the numerous devotional artefacts, stained glass windows and other religious works of art located in them.

Purpose and Activities The Purpose of the Charity

Parish-led Activities

The Charity’s Trust Deed states that the purpose of the Westminster Roman Catholic Diocesan Trust is ‘advancing the Catholic religion in the diocese by such means as the Archbishop may think fit and proper’.

One of the principal activities within each parish is the celebration of Mass by the parish priest. Approximately 147,000 people across the diocese attended this sacred liturgy each Sunday last year. But parish priests do far more than just celebrate Mass: they are active leaders in their respective communities and they are responsible for preparing eligible candidates to receive, and then for conferring upon them, the sacraments.

The diocese comprises 214 parishes located within the boroughs of London lying north of the Thames and west of the Lea River, within the Borough of Spellthorne in Surrey, and within the County of Hertfordshire. The Catholic religion is a practical faith that reaches out to care for those in need. It forms responsible citizens to take an active role in society and to work for the common good. It builds community cohesion and brings about peace and reconciliation where they are needed, all the while respecting every human person’s intrinsic human dignity. Its advancement is achieved most effectively when Catholics, fully living their faith, reflect the love of God to all around them: to their families and friends, to their local communities, and to the stranger in their midst.

With the assistance of nearly 4,600 lay catechists and roughly 600 pastoral assistants, parish priests prepared catechumens for approximately 9,000 Baptisms/ Receptions into the Church, presided at around 8,900 First Holy Communions, assisted diocesan Bishops in conferrring roughly 5,400 Confirmations, celebrated approximately 950 marriages, and conducted approximately 3,500 Funerals. Furthermore, at year-end, there were a further 1,800 catechumens and candidates part-way through their formation.

The Charity therefore fulfils its purpose by offering religious and pastoral services and educational programmes both to the approximately 440,000 selfidentifying Catholics and to the roughly 4.2 million other residents within its borders, of other faiths or of none, principally through its parishes and chaplaincies, through its schools, and through its social outreach agencies coordinated by Caritas Westminster.

Reflecting on these statistics for a moment, the number of Baptisms/Receptions into the Church demonstrates the vibrancy of the Catholic Church in the modern world. Baptisms in infancy (up to 1 year) and childhood (between 1 and 7 years), in which parents present their children for baptism, of which there were about 8,000 in 2016, show the importance parents place on transmitting the Catholic faith to their children, integrating them fully into the sacramental life of the Church, and bringing them into the welcoming Catholic community.

When setting the Charity’s aims and planning its work for the year, the Trustees give careful consideration to the Charity Commission’s general guidance on public benefit. Page 24

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

The fact that a significant number of Baptisms/ Receptions into the Church (about 1,000 in 2016) take place for people over the age of 7 years, people who actively choose to present themselves for the sacrament, demonstrates compellingly the attraction of the Catholic religion to those raised either with a different faith or with no faith at all.

St Lawrence’s, Feltham Build a new church hall

Furthermore, the statistics indicate that the overwhelming majority of those baptised in infancy and childhood go on to become fully sacramentalised in the Catholic Church, through receiving First Holy Communion (95% of all those receiving this sacrament did so while in full-time education) and Confirmation.

Sacred Heart of Jesus & St Joseph, Ware Build a new community hall

St Joseph’s, Stevenage Increase church size and build a new church hall St Thomas More, Swiss Cottage Underpin and redecorate the presbytery

St James’s, Marylebone Convert convent into accommodation Equally, the Trustees commit significant time and energy to ensuring that parishes are able to offer a comprehensive range of pastoral and educational programmes, and also to ensuring that the programmes offered are appropriately resourced.

While it is often written that marriage is on the decline, within the diocese it would appear that a fairly consistent number of couples seek marriage each year, but in a growing number of instances couples are choosing to travel overseas, be that to their family parish or because of financial constraints, illustrating both the cultural and ethnic diversity of the couples resident in our parishes.

During 2016, a total of 17 parishes invested in their programmes by employing additional staff as youth workers, children’s workers, outreach workers, pastoral assistants and catechetical coordinators – not only securing the future of the existing programmes but also providing a solid platform to expand their scope and accessibility in local communities.

The combination of factors highlighted above bear witness to the continuing relevance of the Catholic Church and the Catholic religion to everyone in contemporary society.

Following the successful launch of Proclaim ’15, an initiative of the Bishops’ Conference of England and Wales intended to affirm the good work already being done by the Catholic community and to provide support, encouragement and inspiration for new expressions of Catholic joy and missionary outreach, parishes throughout the diocese continued to develop and implement projects in five broad themes: Faith Formation, Prayer, Marriage & Family Life, Caritas, and Other Pastoral Work including Outreach.

Beyond these simple statistics, parish priests engage daily with their congregation (e.g. during daily Mass, when ministering to the home-bound) and also, in concert with the significant number of volunteers in the diocese, to the wider local community (e.g. when visiting people who are sick or in hospital, when counselling those experiencing pain, loss, hardship or other difficulties, when leading bereavement support groups).

As of December 2016, a total of 531 projects were active in parishes across the diocese. Examples drawn from the themes mentioned above include:

Many parish activities that fulfil the Charity’s purpose rely on purpose-built buildings, and the Trustees direct significant resources and time towards ensuring that parish buildings are fit for their intended purpose. To this end, during 2016, there were a total of 64 active parish projects ranging from feasibility stage right through construction to the post-contract stage, with total estimated expenditure of £10.6 million (in 2015 there were 62 projects at a total value of £8.3 million), of which £9.1 million had been incurred by 31 December 2016.

• I n Barnet, every member of the Youth SVP group carries out a minimum of one hour’s voluntary work each week, either helping the parish with sacramental programmes or the youth club, or helping in the local community, by visiting and befriending elderly people in residential settings, mentoring pupils in schools, and by coaching or helping at after-school activities.

Projects covered everything from minor repairs, renewals and redecorations, through the reordering, conversion and extension of existing buildings, all the way up to large-scale refurbishment, roof repairs or wholesale replacements, and the construction of brand new buildings. Some of the biggest schemes completed in 2016 were:

• I n New Southgate parish, parents of children with special needs can attend a weekly drop-in centre for advice, support and friendship. • I n Hampstead, a bespoke App allows the parish to reach out to anyone, no matter how busy, seeking access to prayers and information about parish events. Page 25

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

helping to preserve and nourish the diversity of distinct cultural expressions of faith and community present within and across the diocese; others cater for communities, such as Travellers, who are not typically integrated into a particular parish. Yet further chaplaincies support those engaged in specific activities, such as our Sports Chaplaincy, or those at certain stages of life, such as the Youth and University Chaplaincies.

• S tanmore parish is reaching out to ‘prisoners in the community’ by offering support and assistance to child carers. • I n Soho parish, the ‘Open House’ provides outreach to the poor and homeless: Tuesday and Thursday evenings around 60-80 guests are provided with a hot meal; prayers are said as a group, hymns sung and Adoration of the Blessed Sacrament in the chapel is open to any who would like to take part. On the first Sunday of each month there is a film show for the homeless guests and an opportunity to meet socially with volunteers, and for prayer.

Youth chaplaincy across the diocese is coordinated by the Westminster Youth Ministry (WYM), who are responsible for nurturing the character of tomorrow’s adults, forming them into active, capable citizens with the confidence required to thrive in modern society. This responsibility grows in importance each and every year and requires constant vigilance and focus, together with increased provision of facilities and staff, to ensure that it can be successfully satisfied.

Through the provision of such a broad, diverse range of religious and pastoral services, parishes offer an inclusive and accessible ministry to everyone, residents and visitors alike, living and working within their geographical boundaries. Another, complementary, way in which the diocese strives to be inclusive in its ministry, and to engage more widely with society, is through its chaplaincies.

WYM works closely and collaboratively with parishes as well as other, non-diocesan Catholic agencies, to help build strong, active and sustainable youth and young adult communities, which in turn provide each young person with all the support and formation they require to fulfil their innate human potential and become a positive role model in society.

Chaplaincy-led Activities Chaplaincy is the provision of religious and pastoral services to people within local communities who may have specific needs due to their state of life, who face unique challenges, or who are vulnerable and therefore require special accommodations to be made. The creation and continued operation of individual chaplaincies reflects not only the changing needs of people in their local communities, but also of contemporary society itself, particularly in relation to social integration and community cohesion.

During 2016, in addition to its usual complement of events, seminars, training courses and workshops, WYM took over 1,000 young adults on supervised pilgrimages, including to World Youth Day in Krakow, Poland, the culmination of three years’ focus on three of the Gospel Beatitudes: ‘Blessed are the poor in spirit, for theirs is the kingdom of heaven; blessed are the pure of heart, for they will see God; blessed are the merciful, for they shall be shown mercy’.

Most commonly, chaplaincies are connected with secular institutions, such as hospitals, prisons, and schools. In addition to providing such institution-based chaplaincies, the diocese offers a diverse range of other chaplaincies ministering to those who are not affiliated with any secular institution.

Building on these themes, in March this year, Flame 2017 at Wembley Arena was attended by nearly 10,000 young people, including 1,100 from the diocese, joining together to celebrate their faith as one. His Eminence Cardinal Vincent Nichols delivered a message on behalf of His Holiness, Pope Francis, who prayed that the event would foster a greater zeal to be witnesses to Christ’s love in the community, to blaze trails that open up new horizons capable of spreading joy, and to encounter God in the hungry, the thirsty, the naked, the sick, the friend in trouble, the prisoner, the refugee and the migrant, and in our neighbours who feel abandoned.

For example, there are chaplaincies to provide sacramental and pastoral care and support to people from 34 different ethnic communities, from the AlbanianKosovan to the Zimbabwean, from the Brazilian to the Vietnamese. People engaging with these chaplaincies may simply face a language barrier, or at the other end of the spectrum, may have fled their home nation to escape persecution for their beliefs and have been granted asylum. Each chaplaincy offers the newly-arrived immigrant a safe and welcoming environment in which to engage with their local community, helping them in turn to integrate into society.

University chaplaincy is coordinated by Newman House, the location of the Catholic Chaplaincy Centre in central London, which is responsible for organising and providing religious and pastoral services to the 300,000 students and staff at universities and colleges located in the diocese. At year end, a total of 17 universities and colleges were benefitting from active pastoral engagement,

The vast majority of our ethnic chaplaincies celebrate Mass at least once a month in their native languages, Page 26

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

including 13 which had a formally appointed chaplain. During the year, contacts with six higher education institutions that had no prior Catholic presence were cultivated which it is hoped can be developed into new pastoral missions.

and personal advocacy on behalf of those who cannot do it themselves (e.g. certain hospital patients). Chaplains do not have to be ordained priests, though many are, nor are chaplains required to have undertaken theological education, though many have indeed done so.

Newman House also offers residential accommodation to 63 full-time Catholic students originating from 20 countries around the world, studying at various levels at many of the institutions of higher learning in London, who have all chosen to live in community for one academic year in order to deepen their faith within a happy and relaxed environment.

The success of all the front line activities offered by our parishes and chaplaincies in fulfilling the Church’s purpose is facilitated with support from the central services of the diocese. This support takes many practical forms, encompassing the provision of training, the production and dissemination of printed materials, the organisation and promotion of programmes and events, and the hosting of pilgrimages.

During 2016, weekly Mass attendance at Newman House doubled, meaningful engagement on the topic of climate change issues was achieved with Lord Stern and the London School of Economics, and a new Social Outreach Chaplain and Volunteer Coordinator were appointed to help connect students with local charitable organisations, with a particular emphasis on assisting the poorest and most vulnerable within society.

Central Services Support The Agency for Evangelisation is the curial division that supports parish priests and catechists in carrying out their work within the diocese. The training and encouragement provided by the agency is essential to ensuring that parish priests and catechists not only have a common knowledge base, but also are confident in transmitting the Catholic faith to those seeking a deeper relationship with Christ and his Church.

The summer also heralded the start of the Catholic Chaplaincy Centre’s semi-centennial festivities. To celebrate reaching this remarkable milestone, a number of events were organised, including a series of six Public Anniversary Lectures focusing on the dialogue between faith and various contemporary issues. Occurring throughout the academic year, the lectures were extremely well-attended and succeeded in opening up Newman House to a wider audience.

Catechesis is a continual process of education, formation and conversion that must be offered in many forms depending on each individual’s particular circumstances. For example, the catechesis provided to children preparing for their First Holy Communion will differ from that which is given to adults preparing for initiation into the Church.

During the summer of 2017, Newman House was proud to host a special exhibition in honour of its patron namesake, Blessed John Henry Newman, evoking in word and image both his life and his faith.

During 2016, the agency offered 125 hours of general catechetical training to catechists from across the diocese, and organised a total of 46 adult faith formation events with 1,350 registered participants.

The richness and diversity of the diocese’s growing multi-national, multi-cultural constituency, presents many challenges for those wishing to practice or to share their faith outside the parish framework. It can sometimes be difficult for people to understand where they can meet like-minded Catholics and benefit from the vast range of charisms available.

The Safeguarding department is the curial division whose mission is to protect children and vulnerable adults in the Diocesan Catholic community from experiencing harm, by: (1) putting their needs at the centre of everything we do; (2) putting in place all necessary measures and mechanisms through the implementation of the Catholic Church’s national safeguarding policies and procedures; and

Diocesan chaplaincies, as exemplified above, are found in manifold environments, but each aims to offer exactly the same thing: personally-tailored spiritual and emotional support whenever and wherever it is needed, and in a way that accommodates each individual’s particular circumstances, in a manner and to an extent that could not, practically, occur in a parish setting.

(3) creating a safe environment in which to worship and be involved in church activities. At a central level, safeguarding is undertaken by a team comprising a Safeguarding Co-ordinator and an Assistant to the Co-ordinator, both of whom have a legal background in family law, supported by a DBS administrator with a wealth of experience of Catholic charity work and disclosure and barring matters, a team administrator and the Episcopal Vicar for Safeguarding.

Consequently, the religious, pastoral and spiritual activities undertaken by chaplains are hugely varied, and can include: performing wedding or funeral ceremonies; providing regular, informal counselling; leading prayers; Page 27

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

This team works in collaboration with the Westminster Safeguarding Commission who has members with expertise spanning a number of safeguarding agencies, including the police, social care, education, nursing and the law. The Commission meets every three months to set the strategic agenda for Safeguarding in the diocese.

The department also handles the logistics for the Annual Mass for Matrimony held at Westminster Cathedral, that was attended this year by 671 couples, from 200 parishes, celebrating their 10th, 25th, 40th, 50th or 60th+ wedding anniversary, and organises various talks, seminars, retreats and conferences.

An online Safeguarding resource centre provides accessible support to all Safeguarding personnel within our parishes, supplemented by a quarterly newsletter communicating any recent changes, developments and updates to best practice.

Westminster Youth Ministry (WYM) is, as previously mentioned, the curial division responsible for nurturing the character of tomorrow’s adults, forming them into active, capable citizens with the confidence required to thrive in modern society.

During 2016, a total of 318 clergy, religious and ethnic chaplains received training from the Safeguarding team, more than 600 people enrolled in online safeguarding training provided by Educare that the diocese offers, for free, to the entire Catholic family, and a total of 39 new Parish Safeguarding Reps were recruited and inducted.

We believe that nurturing the positive role models of tomorrow requires a holistic approach, and so to complement its youth chaplaincy provision, WYM also runs a residential Catholic youth retreat centre based in Pinner, called SPEC, that is dedicated to providing an opportunity for children and young people in the diocese to step back from their daily routines in order to reflect on, and hopefully experience, the presence of God in their lives.

There are now 252 Safeguarding Parish Reps leading safeguarding within the parishes, creating safe environments within parish communities and ensuring that all volunteers are recruited in accordance with safer recruitment practices, including carrying out the necessary Disclosure and Barring Service (DBS) checks. In 2016 a total of 1,204 DBS checks were processed.

The department of Marriage and Family Life is the curial division that supports married couples and those who are preparing for marriage, and educates young people about the vocation to marriage. The department offers a number of targeted programmes for each of these groups, including:

After achieving in 2015 record attendance at its then newly-acquired premises, where more than 8,500 students attended to reflect on the positive ways in which they can lead their lives, the decision was taken to invest in SPEC’s facilities in order to double the number of retreats that could be offered. This decision inevitably meant that in the short term (during the building works) fewer students could be accommodated, roughly 7,300 students attended retreats this year, and 2017 attendance is likely also to be adversely impacted. Building works are scheduled to complete by September 2017, but it is unlikely that the increased capacity in the autumn term will offset the reduced capacity available in the spring and summer terms.

(1) Explore: where married couples talk with small groups of secondary school students about the realities of married life and lasting relationships, and answer any questions they may have. During 2016, a total of 1,099 students took part (2015 – 979 students);

To counterbalance the reduced physical attendance, SPEC has advanced its virtual presence: the number of video views more than tripled, its number of Facebook likes grew by 40% and its number of Twitter followers grew by 33%.

(2) SmartLoving Engaged: a comprehensive marriage preparation course, in which 271 couples participated;

Supplementing the retreat centre is a comprehensive support structure for ongoing formation, including a dedicated section on the WYM website called ‘Discover’ that contains articles and discussions covering many of the topics addressed and common questions asked during retreats. It provides retreatants with an opportunity to continue to evaluate their relationship with God and to reflect on the bigger questions in their hearts even after their retreat has concluded.

The Safeguarding team’s work was recognised and celebrated through the successful Catholic Safeguarding Advisory Service (CSAS) audit conducted in April 2016.

(3) Loving4Life: marriage enrichment weekends offered to married couples to help them rediscover the joy of being a man and woman in love, drawing on authentic Catholic teaching on the Theology of the Body, which were attended by 24 couples; and (4) Retrouvaille: a programme designed to help heal and renew troubled marriages, by offering participants the chance to rediscover themselves, their partner, and a loving relationship in their marriage, which has helped to save the marriages of nearly 200 couples since 2009.

Allen Hall is the seminary of the Diocese of Westminster, funded by the Westminster Ecclesiastical Education Fund, where those who believe they are called to the priesthood and have been accepted for formation may Page 28

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

discern and respond to their vocation. During the 2016/17 educational year, Allen Hall had oversight of about 50 men (no change to 2015) from a wide range of countries and backgrounds, reflecting the rich variety of Catholic life, each seeking to deepen his appreciation and love of the Eucharist and of the Church.

November, the diocese planned and promoted its annual pilgrimage to the Holy Land, led by His Eminence Cardinal Vincent Nichols. In 2017 the diocese also organised a pilgrimage to Fatima to celebrate the centenary of the first of Our Lady’s appearances to three young children there, in which she gave the children a mission and message of prayer and penance to bring peace to the world. The large numbers of the faithful attending all these pilgrimages reflects the great diversity of age, social and ethnic background within the Diocese of Westminster.

Although about two thirds of the seminarians are from the Diocese of Westminster itself, Allen Hall also provides formation to men from many other Catholic dioceses across the United Kingdom and the rest of the world, as well as to seminarians from several Catholic religious orders. This illustrates the high regard in which Allen Hall is held, worldwide, as a house of clerical formation.

Making pilgrimages is a strong, ancient tradition within the Catholic Church and many parish priests feel called to lead groups of parishioners to holy places all around the world, entirely independent from the centrally-organised pilgrimages.

In March 2015, the Holy Father, Pope Francis, announced an extraordinary Jubilee to run between two important feast days in the Catholic liturgical calendar: from the Solemnity of the Immaculate Conception (on 8 December 2015) to the Solemnity of Our Lord Jesus Christ, King of the Universe (on 20 November 2016). This Year of Mercy invited us all to experience God’s mercy in our own lives so that we, in turn, may show that same mercy to others.

E ducation provided through Diocesan Catholic Schools Education is traditionally regarded as the process of conveying knowledge to others, typically the younger generations. On a deeper level, however, and what the Catholic Church believes, education is about enlightening those in the dark about the ultimate realities of life, and about helping everyone to fulfil his or her innate human potential.

The diocese, primarily through its parishes, responded very enthusiastically to the Jubilee Year, organising pilgrimages and celebrating the sacrament of penance and practical works of mercy, with a special emphasis on reaching out to those who may not have considered themselves ‘eligible’ for divine mercy. Throughout the Year of Mercy, a number of Jubilee Masses were celebrated in the Cathedral for different categories of people, e.g. on 10 September 2016 for those working and volunteering in social care and other areas in which mercy is put into practical action.

As set out in canon law, education must attend to the formation of the whole person, so that all may attain their eternal destiny, unity with Christ, and at the same time promote the common good of society. Children and young people must therefore be cared for in such a way that their physical, moral and intellectual talents may develop in a harmonious manner, so that they may attain a greater sense of responsibility, develop an understanding of the right use of freedom, and be formed to take an active part in public life.

During the Year of Mercy the Holy Doors in the four papal basilicas in Rome (St Peter’s Basilica, St John Lateran, St Paul Outside the Walls, and St Mary Major), each Holy Door being a focus for pilgrimage, were opened so that pilgrims could enter through them. Passing through a Holy Door is a symbolic act performed by each pilgrim, expressing their trust in God’s mercy, their sorrow for their sins and their hope of eternal life.

Underpinning the education offered by each and every school and academy within the diocese are a number of core principles that define the essence of Catholic schools, all of which: Have the child at their centre: Catholic schools are designed and run to provide the very best educational opportunities and life-fulfilling experiences, within communities that have the teachings of Christ and his Church at their centre.

Within the Diocese of Westminster, the Cathedral and 15 other churches opened Holy Doors to provide a complementary, more proximate focus for pilgrimages by parishes, schools and individuals, and also for renewed sacramental celebration and catechesis by the Bishops.

Have Christ at their heart: Catholic schools are places where everyone is valued as a child of God, where every individual is enabled to grow in unity with Christ, and to achieve his or her rightful potential.

Last year, as well as facilitating such extraordinary pilgrimages during the Year of Mercy, the diocese organised a pilgrimage to Walsingham that was attended by over 4,000 pilgrims and its annual pilgrimage to Lourdes, both pilgrimages occurring in July and both being in honour of Mary, the Mother of Mercy. In

Have a liturgical, sacramental and spiritual life: Catholic schools are worshipping communities whose spiritual identities are expressed most visibly through classroom prayer, whole-school liturgies, and assemblies. Page 29

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Are distinctive: Catholic schools, through their clear and visible Catholic identities, will be for many people the place where they first encounter Christ and his Church, and as such are evangelising communities.

At a basic level, isolation and fragmentation compromise the Church’s mission in education. The move to establish a network of CATs in the diocese therefore seeks to ensure that Catholic schools and colleges within the diocese will be better able to work together to proactively address rapidly changing educational needs, to protect vulnerable schools and help them flourish, and to operate with slimmer services and generate economies of scale.

Are centres of excellence for Religious Education and the wider curriculum: A Catholic school’s entire curriculum is underpinned by and expresses Catholic beliefs and values, so it is vital that an understanding and knowledge of the Catholic faith permeates all aspects of school life.

The academisation process itself allows clear working relationships to be established between local Catholic schools, in order to assist with school improvement, leadership recruitment and formation, governance, and co-operation so as to strengthen the Catholic mission. It allows schools to move beyond existing partnerships to achieve a new spirit of collaboration, so that the present success of Catholic schools and colleges in our diocese may be harnessed more effectively.

Are collaborative: Catholic schools actively promote strong and positive links with the wider community, including the diocese, deaneries, parishes, local authorities, families, and other schools. Given that parents, or those who act in their place, are the primary educators of their children, links between the home, the school and the parish are especially significant. Are essential: Catholic schools are places where every child matters; where safety, well-being, enjoyment, tolerance, respect and dignity are reflected in all aspects of school life; where pupils are cherished for who they are as much as for what they achieve; and where all achievement is recognised and celebrated.

The Charity has oversight of 165 primary schools and 50 secondary schools, attended by around 92,000 boys and girls from the ages of 4 to 18. Of this total of 215 schools, 15 are independent, including some in the trusteeship of religious congregations. As of 31 December 2016, there were five academy trusts, comprising both primary and secondary schools, responsible for 17 schools.

In summary, Catholic schools are designed to provide safe, supportive environments where children are challenged to mature intellectually, socially, morally, and physically, and to embody justice, peace, and mercy in the community.

Both the land and the buildings through which all its schools and academies operate are provided by the Charity, together with advice and guidance for both headteachers and governors on general, schoolrelated employment matters. Furthermore, through its Education Service the Charity appoints all headteachers, deputy headteachers, heads of Religious Education, and chaplains.

In order to protect, secure and develop the Church’s mission in education, in October 2016 the Trustees approved the expansion and development of Catholic Academy Trusts (CATs) across the diocese via the introduction of clusters of local schools. These clusters are in the spirit of ‘families of local schools’ within the wider diocesan education family, and seek to ensure that every school and college sits within a network of collaboration such that each institution both gives and receives support. The programme is expected to take three to four years to implement.

In parallel with direct engagement in the recruitment process, the Education Service has continued to forge close links with the teacher training colleges and has urged schools to use web-based recruitment platforms when advertising their vacancies. By the end of the year almost half of all the schools in the diocese had signed up to the recommended platform, with each vacancy having been viewed, on average, more than 440 times.

While there are divergent political opinions about the future path of education policy, it appears that most schools will move towards academy status. This is because:

Widening and deepening the potential applicant pool in these ways demonstrates clearly the Charity’s unswerving commitment to recruiting the most talented and capable leadership, teaching and support staff for all its schools, and the value it places on the quality of the education they provide.

• the direct funding of academies has reduced the capacity of local authorities to provide adequate resources to support schools; • there are increased powers of intervention in struggling schools that receive a warning notice about their performance; and

During 2016, a total of 114 visits were made to schools to offer advice and guidance, a total of 37 formal hearings were attended in an advisory capacity, a total of 20 heads and 17 deputy heads were appointed at primary schools, and a total of 9 heads and 4 deputy heads were appointed to fill vacancies at secondary schools.

• financing schools and educational services is increasingly demanding, with budget management and changes to national funding formulae causing significant challenges for many schools. Page 30

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All schools within the diocese are regulated by the Office for Standards in Education, Children’s Services and Skills (Ofsted), who conduct a rolling programme of inspections and regulatory visits to all schools in order to achieve excellence in education and skills for learners of all ages, and in the care of children and young people.

St Dominic’s Sixth Form College, Harrow, which was selected as The Sunday Times Sixth Form College of the Year 2017;

As of December 2016, Ofsted rated 54 diocesan primary schools as ‘Outstanding’ (2015 – 32 primary schools), while just 6 diocesan primary schools were rated as ‘Requires Improvement’ (2015 – 15 primary schools). At the time of writing this report in 2017, the number of primary schools requiring improvement had further reduced to 4. No primary schools were rated ‘Inadequate’ (2015 – 1 primary school).

St Gregory’s Catholic Science College, Kenton, which won “Best School Garden” in a national garden competition; and

St Mark’s Catholic School, Hounslow, which achieved a Progress 8 score of 0.76 which placed them 25th out of 6,382 schools in the country;

St Thomas of Canterbury School, Fulham, which won first prize in the prestigious David Shepherd International Art Award. During the year the Education Service continued to conduct its own rolling programme of inspections to assess both the standard of Religious Education (RE) in the classroom and the state of Catholic life in its schools. Based on the objective criteria used by the diocese in its assessments, the proportion of primary schools rated as ‘Outstanding’ for Classroom RE was 15.9% and the proportion rated ‘Outstanding’ for Catholic Life of the school was 49.1%. The proportions rated ‘Requires Improvement’ were 1.9% and 1.2% respectively. In secondary schools, the same proportions were 64.4% and 62.2% rated ‘Outstanding’ and 0% and 2.2% as ‘Requires Improvement’.

A similar positive rating shift was seen amongst secondary schools in the diocese: as of December 2016, Ofsted had assessed 21 as ‘Outstanding’ (2015 – 13) and none as ‘Requires Improvement’ (2015 – 3). No secondary schools were rated ‘Inadequate’ in either 2016 or 2015. Not only are these rating shifts to be applauded, but they also affirm the sterling efforts made by diocesan schools and the Education Service to ensure that a universal, high-quality education is available to all pupils. Equally noteworthy is the fact that diocesan schools achieved on average higher ratings than their peers: as of December 2016, 26% of all primary schools in London were rated by Ofsted as ‘Outstanding’ (Diocese: 33%) and 6% as ‘Requires Improvement’ (Diocese: 4%); for secondary schools in London, Ofsted rated 37% as ‘Outstanding’ (Diocese: 42%) and 8% as ‘Requires Improvement’ (Diocese: 0%).

The academic performance seen overall at GCSE and A-level was even more impressive for those studying RE: of the 5,883 students who completed their GCSE, 81% achieved A*-C grades (national average: 70%), and they achieved an average Progress 8 score of +0.47. At A level, 54% of students taking Religious Studies achieved A*-B grades.

Diocesan schools also outperformed their peers academically: over 75% of students achieved five or more A*-C grades in their GCSEs (nationally: 62%), and at 13 schools the number of students achieving five or more A*-C grades including English and maths exceeded 80%.

In addition to achieving academic excellence and providing sound moral formation to all their students, Catholic schools strive to care for the whole person – mind, body and soul. Many have formal ‘Healthy Schools’ policies which aim to help children and young people to lead a healthy lifestyle so that they grow up healthily, safely and responsibly, and with the motivation and selfrespect to make healthy choices.

2016 saw the national introduction of a new statistic called the Progress 8 score, intended to measure student progress between primary school and GCSE. A score of 0 is, by definition, the national average, while scores between 0 and 0.5 mean pupils have performed better than the national average, and scores above 0.5 mean performance has been significantly better than average. Students in diocesan schools achieved an average Progress 8 score of +0.31, with those at six schools exceeding +0.5.

Many of our schools have also joined with the diocese in promoting our mission of social justice, through initiatives like Fairtrade, which aims to help producers of commodities, such as coffee, cocoa, sugar, fresh fruit, chocolate, flowers and gold, in developing countries, to achieve better trading conditions, and to promote sustainable farming.

At AS level, 27% of students achieved A-B grades, and 47% of students achieved A*-B grades in their A2 level examinations.

In coordination with, and with the financial assistance and support of, the government, local authorities and parents, the diocese continues to improve and expand its schools buildings.

Many of our schools also gained recognition, national and international, for their exceptional performance and achievements in 2016, including: Page 31

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Report of the Directors of the Corporate Trustee – Year to 31 December 2016

During 2016, the Trustees oversaw 209 school development projects, of which 111 were still active at the end of the financial year. The 98 projects that were completed within the year represent a £20.3 million capital investment, and include six of the seven major expansion projects specifically mentioned in last year’s report, which were implemented to accommodate extra forms of entry. The seventh major expansion project, at St Richard Reynolds school in Twickenham, funded by both the Diocese of Westminster and the Archdiocese of Southwark, is expected to complete in 2017.

The unifying, underlying principle required to realise the Church’s vision of a just society is solidarity, the real and determined commitment of each person to the welfare of all.

Other active major projects include: St Joseph’s School in Willesden, which is being rebuilt following a major fire in 2015 which partially destroyed the building (the capital cost of the works is covered by insurance); St George’s School in Westminster (part of the Cardinal Hume Academy Trust), which is being expanded; St. James’ School in Barnet, which is being expanded and onto whose site Blessed Dominic School is being relocated; two new school building projects approved as part of the Priority Schools Building Programme Phase 1 (PSBP1); and twelve potential refurbishment/replacement projects as part of the Priority Schools Building Programme Phase 2 (PSBP2).

Caritas organises and provides its support via six hub networks, each network being headed up by a development worker whose role is to work within those communities to share their knowledge and experience, and to encourage and facilitate volunteering, in order to expand new social justice initiatives and to build on existing ones.

In recent years the Trustees set up a new department, Caritas Westminster, to help lead this effort in the diocese, and to act as an example to others. The primary role of Caritas is to support our parishes, chaplaincies and schools in their charitable response to the needs they encounter in their local communities.

While there is a great deal of urgent and necessary work to be done, the Trustees have identified seven focus areas: 1) Supporting people who find themselves in food poverty and debt

A total of 152 new school projects, representing £35.8 million capital expenditure, were submitted for consideration during the current financial year. Funding will be assigned following the Department for Education’s 2017/18 capital allocations, and will be based on both existing asset condition and objective asset management criteria.

Following its temporary closure early last year in order to facilitate its reorganisation, the St John Southworth Caritas Fund reopened in April and extended its remit to the whole diocese once again. During the year, it made a total of 32 grants to the value of £80,000 (2015 – 16 grants, £70,000) in line with its key priority areas of alleviating poverty, deprivation, isolation and loneliness.

The Implementation of Catholic Social Teaching through Caritas

The fund awarded 18 crisis grants (2015 – 7) for individuals and families in need, where a small sum of money can make a significant difference (for example, paying rent, fuel bills or children’s expenses in order to avoid eviction and homelessness during a period of crisis; giving money for school lunches; providing for the basic needs of those without recourse to public funds).

The fundamental principle of all Catholic social teaching is that each and every human person is created in the image and likeness of God, and therefore possesses an innate dignity, irrespective of his or her personal circumstances. Through a series of papal encyclicals published over the past 115 years, the Church has developed this concept of human dignity to articulate essential truths about what constitutes a just society: one which

In addition to this support for individuals and families in crisis, the fund made 14 project grants (2015 – 9) to parishes and local organisations working together with parishes, to provide funds to seed or develop local social action initiatives (such as food banks, school breakfast clubs, and apprenticeships placement schemes).

• is oriented towards human flourishing; • supports the natural human community of the family, and the integration of people into broader communities of the Church and society;

2) Supporting lonely, isolated and vulnerable people During the year Caritas Westminster undertook a number of important initiatives in these areas on its own account, most notably setting up a vital partnership with the Religious of Mary Immaculate Sisters to help marginalised women gain employment in both a safe and legal manner, thereby enabling them to support themselves and their families, and to live a dignified family life.

• recognises the dignity and worth of human labour; • guarantees the fundamental human rights of all; • offers everyone the freedom to fulfil his or her responsibilities; and • cares appropriately for God’s creation. Page 32

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In addition, Caritas also supported parishes in their own efforts to reach out to those in our communities in need of human contact, including:

a number of Baptisms, First Holy Communions and funerals were sign interpreted and several other key services and events were also communicated in sign language, including:

• I n Brook Green, Enfield and St Albans, establishing Refugee Welcome Groups to help support, befriend, sponsor, train and teach refugees;

• The ordination of Bishop Paul McAleenan and Bishop John Wilson; • Masses on Ash Wednesday and Palm Sunday, and the Easter Triduum; and

• I n Finchley East, coordinating volunteers to help at the monthly drop-in for refugees;

• The Stations of the Cross, weekly throughout Lent.

•A t Grahame Park, setting up a St Vincent de Paul group to work with and support local people in need; and

Another important aspect of the Caritas Deaf Service is the counselling it provides for those at risk of suicide or self-harm, or who have been victims of domestic violence, which occurs within the Deaf community at twice the national average rate, and the training courses it runs for those wishing to learn British Sign Language.

• I n Hendon, establishing a telephone befriending scheme for the housebound. A growing number of parishes within the diocese are seeking approval to sponsor refugee families via the Community Sponsorship Scheme, which was launched by the government in July 2016 to enable community groups including charities, faith groups, churches and businesses to take on the role of supporting resettled refugees in the UK. The scheme requires each sponsoring organisation to secure consent from the relevant local authority, to have developed a comprehensive plan for resettlement, and to provide sufficient dedicated resources for a resettled family’s needs for up to two years.

And finally, a range of social activities and events are organised to bring members of the Deaf community together, including monthly Bible study sessions, a monthly support group for older people, the annual pilgrimage to the National Shrine of Our Lady at Walsingham, and a pilgrimage to Bruges, Belgium to attend the Procession of the Holy Blood, on Ascension Day. 4) Supporting people with intellectual disabilities and their families

This means sponsoring organisations taking responsibility for providing appropriate housing; for offering direct, ring-fenced funding; for promoting integration into community life; for facilitating access to medical and social services; for organising English language tuition; and for helping sponsored families take steps towards gaining employment and becoming self-sufficient.

This focus area has achieved particularly notable growth this year, especially through Caritas St Joseph’s, which each week helped more than 200 people with intellectual disabilities to develop their potential, which doubled the number of Symbols of Faith workshops delivered during the year, and which doubled the number of students registered at Connect @ Hounslow.

Eleven individuals have been welcomed to a new life in the UK through the scheme and further arrivals are anticipated during 2017 and beyond. The translation of Catholic social teaching into concrete action by these parishes exemplifies the diocese’s determination to improve the circumstances of the most vulnerable in society, and demonstrates the vibrancy and urgency of the Catholic response to injustices wherever they may be encountered.

As a sign of the transformative impact Caritas St Joseph’s can have for many of the people it assists, someone it had supported for several years was GlaxoSmithKline’s Employee of the Year 2016. And finally, a group called Friends for Friends that was inspired by a Caritas St Joseph’s outreach initiative more than 30 years ago, and which has 90 registered guests regularly attending with their carers, has been reinvigorated through its renewed partnership with Caritas St Joseph’s and is already starting to plan for the next 30 years.

3) Supporting the Catholic Deaf community At least once a month throughout the year, four parishes distributed geographically around the diocese – Westminster, Whitton, Limehouse and White City – provided signing at a regular weekly Mass, as well as a dedicated prayer corner with candles and holy water for those members of the Deaf community who wish either just to pray or to attend the sacrament of reconciliation before Mass started.

5) Supporting young people at risk of social exclusion Across the diocese are a number of parishes directly involved in this essential focus area, including Stanmore, where parishioners reach out to ‘prisoners in the community’ by offering support to child carers, and North Harrow, where the Love in Action programme funds Christmas presents for children with a parent in prison.

Besides this essential liturgical provision, Mass was signed once a month at a Catholic care home in Hammersmith, Page 33

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6) Supporting victims of human trafficking

Other parishes in the diocese, a number working in collaboration with the Glass Door Homeless Charity, the biggest homeless shelter network in the country, take turns hosting shelters seven days a week throughout the coldest months of the year, allowing about 95 guests to find a safe, warm place to sleep every night. By midway through the winter season, a total of 44 individuals had moved into more stable housing and a total of 22 individuals had been supported into finding work.

Caritas Bakhita House is the diocese’s dedicated accommodation (emergency safe house) for rescued female victims of human trafficking in the UK. It is part of the unique working relationship between the Catholic Church, the Metropolitan Police, the UK’s Anti-Slavery Commissioner and law enforcement agencies across the UK, in their efforts to tackle modern slavery. During 2016, Bakhita House increased the number of its guests from 18 women to 50 women, three new-born babies and one toddler, giving each and every guest all the holistic care and assistance they needed to start restoring their lives. The quality of the relationships formed by each guest with our professional staff, women religious, volunteers and organisations linked to our Catholic network, delivers an experience that optimises their recovery and rehabilitation, and which provides a foundation for lasting hope in their lives.

Conclusion The activities, services, programmes, events, actions, initiatives and projects described in detail above exemplify the Charity’s unwavering commitment to the welfare of all within society according to the principles of the Church’s teachings and its beliefs. To help finance and support the Charity’s activities, and in order to provide for future needs, the Trustees led a fundraising programme called Growing in Faith which ran from January 2012 to December 2014, and which conveyed to each and every parishioner the Charity’s key future priorities: a) vibrant and sustainable parishes; b) a sustainable priesthood; and c) providing help to the poor and the marginalised. The campaign received about £35 million in gifts and pledges from around 20,000 households, of which about £25.2 million had been received by year end. We are immensely grateful to all donors for their continuing generosity towards this programme. The cost of the campaign was £3.8 million, which was met by the curia from its existing reserves.

The global network of the Catholic Church has allowed the work being done at Bakhita House to serve as a model of best practice for replication. Five international embassies and a number of other Catholic dioceses have visited Bakhita House to see how this model works in reality. We hope to motivate other organisations and countries to set up similar safe houses to help victims in need on a global scale. In November 2016, Caritas Bakhita House was awarded silver at the Christian Funders’ Forum in the Best Social Action Project category, which recognises those projects that bring sustainable change in the lives of vulnerable people. This acknowledgment reflects the evident widespread appreciation for the wonderful, life-changing work taking place at Bakhita House.

During the next year the Charity will continue to build on these concrete achievements in a continuing effort to demonstrate both its resolve to effect meaningful societal change and its commitment to its stated purpose.

7) Supporting people who are homeless The Westminster Winter Night Shelter helped a total of 63 homeless people, with 39 guests moving into accommodation, 11 guests beginning paid employment and 6 people being reconnected with relatives in their country of origin.

We believe that the sacramental ministry and spiritual support that the Catholic Church offers to its members, as well as her constantly outward-looking stance, her attempts to build bridges with the broader community and her efforts to advance social justice and the common good in our society as a whole, place the Catholic Church at the forefront of the movement towards a more tolerant, cosmopolitan populace.

One of these men, an internationally recognised sculptor, became homeless after his car, which he was also sleeping in, was written off during a car accident. With no accommodation and also no way to attend the exhibitions of his work, he came to the night shelter in April. Working together with the West London Day Centre, the night shelter managed to refer him to a live-in art gallery scheme, which has allowed him to continue sculpting while providing him with accommodation. Another guest, whilst in the night shelter, was referred to an employment scheme for those unable to gain recourse to public funds. He is now living in private rented accommodation in North London and working as a bus driver. Page 34

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Report of the Directors of the Corporate Trustee – Year to 31 December 2016

Financial Review

Over the past two years, the Charity has spent significant sums of its own funds on two particular property assets for occupation by Catholic schools, St Richard Reynolds School (a voluntary aided primary and secondary school, in Twickenham) and the Friary (an independent pre-prep school that forms part of the Westminster Cathedral Choir School).

Scope of the Consolidated Accounts The consolidated accounts include the assets, liabilities and transactions of the following: The Curia: the division responsible for the central organisation necessary for the Charity to achieve its stated purpose. Curial funds therefore support the Archbishop and Bishops in providing diocese-wide services and pastoral care and in meeting the cost of central administration. These funds are administered by staff within the Curial (or Central) Offices in the Westminster Cathedral complex and in other diocesan centres.

In accordance with the principal accounting policies which form part of the accounts attached to this report, voluntary aided schools and academies which are publicly funded are valued at £nil in the Charity’s accounts. Consequently, the amount spent on St Richard Reynolds School (£7.3 million) has been recognised in the accounts as expenditure in the year.

The Parishes: the division responsible for the local organisation necessary for the Charity to achieve its stated purpose. Parochial funds are therefore used to carry out the work of the Church within local areas and to help fund the curia. These funds are administered, with guidance from the Central Finance Office, by the Parish Priests.

As of 31 December 2016, the total amount invested in the Friary (£8.7 milion) has been recognised in the accounts as a programme related investment. Further expenditure on both schools will be incurred in 2017.

Financial Results

Westminster Cathedral Limited: a wholly-owned subsidiary trading company carrying out general activities relating to Westminster Cathedral, whose object is to generate profit for the benefit of the Cathedral.

The table set out below summarises the financial activities of the diocese. 2016 £m

2015 £m

Parishes

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.

Income Expenditure

Other Charities: independently registered charities that are integral to the Charity, namely: • The Moorfields Charity (Charity Registration No 247198) – a charity providing assistance to the Catholic parishes of Moorfields and Bunhill Row, and to Westminster Cathedral.

37.3

37.8

(27.1)

(26.6)

Surplus before assessment and transfers

10.2

11.2

Diocesan assessment

(5.3)

(5.2)

Transfers from Curia

1.8

1.2

Surplus after assessment and transfers

6.7

7.2

Investment gains

5.5

5.0

Added to reserves

12.2

5.3

5.2

Transfers to Parishes

(1.8)

(1.2)

Other income

18.6

17.7

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

Curia

•D iocese of Westminster Sick and Retired Priests Fund (Charity Registration No 278136) – a charity which provides assistance to sick, elderly and retired clergy.

Total income after assessment and transfers

Although the Charity is the legal owner of over 200 school properties within the diocese comprising voluntary aided schools and academies, many of which are separate exempt or excepted charities funded through combinations of government grants and voluntary contributions, the nature of the occupation of these properties 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.

Diocesan assessment

22.1

21.7

(23.1)

(13.4)

(1.0)

8.3

Investment and actuarial gains

2.0

1.6

Added to reserves

1.0

9.9

Expenditure (Deficit) / Surplus

Please note that the above numbers reflect, within the curial funds, income arising through the fundraising programme ‘Growing in Faith’ of £8.0 million in 2016 (2015 - £5.9 million), and expenditure in the form of grants awarded from Growing in Faith funds totalling £3.0 million in 2016 (2015 - £0.2 million). The programme incurred no fees in either 2016 or 2015 as it concluded in 2014. Page 35

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Report of the Directors of the Corporate Trustee – Year to 31 December 2016

Reynolds school and £0.2 million at St Anne’s School) which was treated as a programme related investment. During 2016, however, as building works on St Richard Reynolds school progressed, the Trustees felt it more appropriate to write off the expenditure as incurred given that, whilst occupation by the school continues, they have no control over the disposal of the asset and no rental income will be receivable. Consequently, the value recognised as a programme related investment in the 2015 accounts (£2.7 million) has been written off as expenditure in the current period together with the expenditure incurred during 2016. In respect of St Anne’s school, the total spend in 2015 was again treated as a programme related investment. However, feasibility works conducted during 2016 in respect of proposed alterations to the site demonstrated that the project as proposed was not viable. Therefore, the funds spent in 2015 were written off in the current period and amounts spent in 2016 were treated as expenditure in the current period.

Parish income (excluding transfers from curia) reduced by £0.5 million to stand at £37.3 million for the year (2015 £37.8 million), including donations and legacies totalling £26.8 million (2015 - £25.7 million) and income from parish and similar activities of £6.4 million (£6.8 million). Although there was a material increase in income from donations and legacies, this beneficial movement was more than offset by there being no material net gains on disposal of tangible assets (in 2015 there was a net gain of £1.3 million resulting from the sale of parochial property). Parish expenditure for 2016 increased by £0.5 million to stand at £27.1 million (2015 - £26.6 million), resulting in a surplus before assessment and transfers of £10.2 million (2015 - £11.2 million). The diocesan assessment, being monies transferred from parishes to the curia in order to fund diocese-wide programmes, amounted to £5.3 million (2015 - £5.2 million).

Investment and actuarial gains increased by £0.4 million to £2.0 million (2015 - £1.6 million). This is due to there having been a significantly higher gain on listed investments (a positive variance of £2.1 million) that is almost entirely offset by a £1.8 million negative variance caused by an actuarial gain in 2015 turning into an actuarial loss in 2016.

Transfers from Curia / Transfers to Parishes relate to transactions between the curia and the parishes, mostly Growing in Faith grants, which are eliminated upon consolidation. Parish investment gains were once again high at £5.5 million for the year (2015 - £5 million), resulting from an increase in the value of investment properties held by the parishes of £4.6 million and an increase in the value of listed investments held by the parishes of £0.9 million.

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

Total curial income after assessment and transfers in 2016 increased to £22.1 million (2015 - £21.7 million).

Reserves Policy

Other curial income increased by £0.9 million to stand at £18.6 million (2015 - £17.7 million), including income from Growing in Faith of £8.0 million (2015 - £5.9 million), grant income in respect of St Richard Reynolds school of £5.0 million (2015 - £nil) and other donations and legacies of £2.2 million (2015 - £3.5 million). Although there were material increases both in income from Growing in Faith and in grant income, these were partially offset by there being no net gains on disposal of tangible assets (in 2015 there were net gains of £4.8 million resulting from the sale of curial property).

A healthy level of general funds is essential to ensuring that the Charity enjoys a vibrant and successful long-term future. The Trustees currently 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 in order to accommodate changes in future investment values and exceptional expenditure. The Trustees do not believe in accumulating funds unnecessarily; they believe that the Charity should instead prioritise expenditure and investments that enable the diocesan mission.

Curial expenditure for 2016 increased by £9.7 million to £23.1 million (2015 - £13.4 million). Part of the increase was the £2.8 million greater expenditure on Growing in Faith projects, though this was partially offset by there being no impairment of tangible fixed assets (£1.7 million in 2015). However, the principal reason for the increase is the £7.6 million expenditure recognised in respect of building works at St Richard Reynolds school, Twickenham and at St Anne’s school, Enfield. As of 31 December 2015, the total spend on these two schools amounted to £2.9 million (£2.7 million at St Richard

Even with a proactive approach to risk, the Trustees cannot foresee all financial risks nor can they anticipate all the effects on the Charity of a prolonged period of economic stagnation. When establishing their guideline on the free reserves, the Trustees have considered the effects of an eventual financial shock. When making decisions on major investments or capital projects, the 12-month target is a key consideration. At the same time, the financial vulnerability of the Charity should also be assessed. This can act as a warning signal to make a concerted effort to grow the Charity’s reserves. Page 36

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Report of the Directors of the Corporate Trustee – Year to 31 December 2016

Restricted Funds

The Trustees predict that in one year’s time the Charity’s free reserves will be closer to the equivalent of nine months’ worth of expenditure, subject to valuation of the various assets of the Charity. This is because, in recent years, the Diocese of Westminster has undertaken some large capital programmes which have been, and will continue to be, funded from the Charity’s general fund. These programmes are mainly the purchase of Bakhita House to host and care for trafficked women; the building development at the SPEC youth retreat centre in Pinner; and the new primary and secondary school in Twickenham, St Richard Reynolds. The Trustees monitor the Charity’s reserves on a periodic basis in order to take immediate action should these fall below the desired levels.

Curial restricted funds of the Charity total £36.5 million (2015 - £34.2 million) and are not available to the Charity to use for its general purposes. Included within the total is £17.9 million (2015 - £15.1 million) representing monies raised as part of the Growing in Faith campaign. These monies are essential for ensuring a vibrant future for the diocese and will be used: to support parishes and ensure that they are sound, prayerful and sustainable; to support priestly life at all stages, be that in formation, during service in parishes or in retirement; and to maintain the tradition of outreach to those in need. Parochial reserves at 31 December 2016 total £156.1 million (2015 - £143.9 million) and relate solely to the assets and activities of individual parishes. These reserves are not available to the Charity to use for its general purposes, nor are individual parishes able to transfer their funds to other parishes within the diocese.

Funds of the Group General Funds and Free Reserves The Charity’s general funds, which represent monies available to the Charity for its general purposes, decreased by £7.3 million over the year to reach £8.2 million, the equivalent of approximately 10 months of future budgeted unrestricted expenditure (2015 - 18 months).

The Charity’s Assets At the end of 2016, annual capital expenditure for the Charity stood at £10.8 million. Of this amount, £9.1 million relates to ongoing capital projects carried out in parishes, ranging from major projects, such as replacing church roofs or renovating parish halls, to smaller projects, such as refurbishing or redecorating meeting rooms. The remaining capital expenditure for the year is principally in respect of Waxwell Farm, the new retreat centre for Westminster Youth Ministry in Pinner.

The principal reason for this reduction in general funds is the total amount spent on St Richard Reynolds school, on St Anne’s school and on the continuing development of Waxwell Farm. As explained above, in accordance with the principal accounting policies, funds totalling £7.6 million in St Richard Reynolds school and in St Anne’s school, both voluntary aided schools which cannot be disposed of in the open market whilst in occupation, have been expended during the year.

Disposals for the year were negligible. Further details of acquisitions and disposals of fixed assets during the year are recorded in the notes to the accounts.

Connected Charities

The Charity’s general funds are subdivided between free reserves totalling £11.0 million (2015 - £16.7 million) and a pension reserve deficit which stands at £2.8 million (2015 - £1.2 million). The Trustees note that the level of general funds at 31 December 2016 is in line with what they predicted in last year’s annual report.

The main charities connected with the Charity are: • Westminster Ecclesiastical Education Fund (WEEF) (Charity Registration No 312528) – a charity providing training to students to the priesthood which is the recipient of an annual, diocese-wide collection.

Other Unrestricted Funds

• Hare Street House (Charity Registration No 247200) – a charity providing a house for the Archbishop.

Also included within the balance of the unrestricted funds are tangible fixed assets funds totalling £19.3 million (2015 - £17.8 million) and programme related investments funds amounting to £8.7 million (2015 - £2.9 million), both of which represent property and other fixed assets essential to furthering the Charity’s mission. By definition, they do not represent liquid assets immediately available for expenditure. Designated funds represent monies set aside for specific purposes, totalling £0.6 million (2015 - £1.8 million).

A full list of all connected charities is given in note 22 to the attached accounts. All the charities listed are the responsibility of the Corporate Trustee, but outside the scope of these accounts, as they are separate registered charities and are not controlled by the Charity. In some cases they are administered by the Central Finance Office of the Charity and many have similar or related charitable objectives. Page 37

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

Investment Policy

positive engagement with companies, while taking more effort and time, can lead to a more sustainable change for the betterment of society. Where this engagement fails to change a company’s behaviour, the second approach is to disinvest from that company and exclude it from further investments.

Introduction The investment guidelines are set by the Trustees. An Investment Committee implements and reviews the set guidelines.

The Trustees continually review the FCI policy, and the officers of the diocese keep up to date on the ongoing discussions about the subject, assessing how they might impact the overall investment approach. Additionally, dialogue and cooperation with other institutions ensures that the policy remains relevant and up to date. It is a complicated journey which requires continual improvements, amendments and learning from mistakes that have been unintentionally made.

The Charity’s investments comprise units in the Mutual Investment Fund, the investment policy of which is determined by the 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: 22.0% in UK equities, 6.1% in alternative investments; 55.2% in overseas equities; 6.0% in UK fixed interest; 1.1% in property and 9.6% in liquid assets. The overall longterm objective is to manage the portfolio on a total return basis.

The current FCI policy focuses on shareholder activism and engagement with companies to convert them to better comportment. The diocese proactively engages with companies to encourage and promote shareholder initiatives through proxy voting or through direct contact with specific members of company management. Since the size of the diocesan endowment prevents it from influencing many companies’ practices in a sole capacity, it participates in the Church Investors Group (CIG), an ecumenical group representing many mainstream Church denominations and church-related charities, including the Church of England, the Methodists and many other Christian organisations, groups and institutions.

The Trustees regularly review information from their investment managers, monitor the performance of the portfolio against their investment guidelines and assess the suitability of the investment strategy. The Trustees have reviewed the performance of investments during the year and remain confident that their medium-long term investment objective is being achieved. The Investment Committee reviews the choice of investment managers every three years. Faith Consistent Investment The Catholic Church’s understanding of faith and finance is drawn from a series of social encyclicals founded upon Pope Leo XIII’s encyclical letter, Rerum Novarum, issued 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. It remains as relevant today as ever. For example, Pope Francis recently told the world, in Evangelii Gaudium, that ‘money must serve, not rule’. This powerful statement was in tune with comments made by his predecessor Pope Benedict XVI, in Caritas in Veritate, where he stated that ‘economic sphere is neither ethically neutral, nor inherently inhuman and opposed to society. It is part and parcel of human activity and precisely because it is human, it must be structured and governed in an ethical manner.’

During 2016, the Trustees and their representatives continued to engage with investee companies, achieving notable success with climate change engagement. The shareholder resolution that they co-filed with their representatives at Rio Tinto was approved by over 99% of shareholders as well as receiving support from the company itself. The company will now provide shareholders with more information about: ongoing greenhouse gas emissions management, portfolio resilience against the International Energy Agency’s 2035 scenarios, low carbon R&D, and about its ongoing public policy. Diocesan representatives continue to have productive engagement with Royal Dutch Shell following a similar resolution filed in 2016. The Charity also continues to benefit from engagement conducted by the CIG, both through its membership and via Paolo Camoletto (Chief Operating Officer of the Diocese of Westminster) who is a member of its Initiatives Steering Group. Over the past year the CIG engaged with 54 FTSE350 constituent companies who had failed to achieve a C grade on the CDP Carbon Performance Bands. Following engagement, 22 companies increased their CDP Score. The CIG has also been leading efforts to assist companies to develop better processes to identify and address modern slavery occurring within their supply

The challenge for the Trustees is to reflect these teachings in the investment policy while also adhering to the Charity Law requirement to obtain the best possible financial return that is consistent with commercial prudence. The Trustees strive to maintain a Faith Consistent Investment (FCI) policy by making value judgements about the products, services and corporate practices of companies as well as by assessing their financial efficacy. In implementing the policy the Trustees have adopted a two-tier approach: first they believe that Page 38

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

chain. The engagement, conducted with 265 UK listed companies, focused on the requirements of the UK’s Modern Slavery Act.

the situation when possible. The review of the current portfolio at year-end 2016 showed 0.4% of the holdings being in breach of the policy. Since the year end, the Trustees have divested from these holdings.

Additionally, both of the diocesan asset managers, Sarasin and Partners LLP, and CCLA, continue to engage with companies on a variety of environmental, social and governance topics. These include issues such as reducing childhood obesity, where they have been working with restaurant groups and other food and beverage providers to take steps to reduce their impact, improving labour standards, avoiding excessive executive remuneration and increasing tax transparency. The Trustees are very grateful to both firms for their continued efforts in engaging with companies.

There is a potential third aspect to the Faith Consistent Investment policy which is positive social impact investment. While the Trustees do not have a specific target, currently 1% of the portfolio assets are invested in ‘wholly positive’ entities. This type of investment tends to be in companies that are involved solely in renewable energy infrastructure. Besides the investment portfolio, the physical assets of the diocese are used for social justice initiatives such as housing and caring for human trafficking victims, hosting Syrian refugee families or housing social workers in economically disadvantaged communities.

The secondary aspect of the current FCI policy is implemented by the Trustees through the continual review of the investments, in order to determine what should be divested from, and what negative screening should be applied to the overall investment portfolio. The circumstances in which this aspect of the policy is found to apply are constantly evolving, but at the time of writing this report they can be summarised as follows: the sanctity and dignity of human life is an essential part of the Catholic faith, thus there is absolute exclusion of companies that deal with abortifacients or abortion; that engage in embryonic stem cell research, foetal tissue research, or human cloning; that produce pornography; that manufacture contraception; that produce tobacco; or that manufacture arms.

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 with Charity Registration No. 233699.

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

Furthermore, the diocese participates in initiatives that encourage responsible employment practices, that seek an end to human trafficking in the supply chain, and that promote respect for human rights. Companies are, therefore, excluded if they make significant income from the distribution of pornography; contraceptives; tobacco; or arms. Finally, the FCI policy often applies to investments that have a direct impact on the ecological viability of the earth. Companies with 10% turnover from the production of oil sands are excluded, and companies that score below C in the Carbon Disclosure Project are divested. The diocese proactively assesses risk and evaluates companies on their efforts to reduce the carbon footprint.

The Trustees who served during the year ended 31 December 2016 and who were in office at the date of this report were: Appointed/Resigned His Eminence Cardinal V Nichols Rt Rev J Sherrington (1,2,4,5) Rt Rev N Hudson (1) Rt Rev P McAleenan (1, 7)

Appointed 3 February 2016

Rt Rev J Wilson (1, 6)

Appointed 3 February 2016

Rt Rev Mgr T Egan (1,3) Rt Rev Mgr J O’Boyle

The Trustees estimate that for 2016 the implementation of the Faith Consistent Investment policy has increased the CCLA portfolio returns by 0.8% and reduced the returns on the funds invested in Sarasin and Partners LLP by 0.1% in the UK portfolio and 0.1% in the international portfolio. Thus, overall, the policy has had a positive impact on investment returns. Additionally, the Trustees periodically audit the investment portfolio to ensure that the underlying assets continue to adhere to the FCI policy; when they do not, the Trustees seek to rectify

Rt Rev Mgr M Hayes (1, 4) Lord D Brennan QC Miss L Ferrar (2,4) Rt Hon R Kelly Mr C Kemball Mr A Ndoca (3,7) Committee member of: 1) Finance Board 2) Audit and Risk Committee 3) Investment Committee 4) Human Resources Committee 5) Property Committee 6) Education Commission 7) Caritas Advisory Board

Page 39

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

The Trustees met five times during the year.

Trustees’ Expenses

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.

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 from the Charity, nor had any expenses reimbursed by the Charity, in connection with their duties as Trustees during the year. No Trustee had any beneficial interest in any contract with the Charity.

Statement of Trustees’ Responsibilities 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).

Key Management Personnel The key management personnel of the Roman Catholic Diocese of Westminster comprises the COO / Financial Secretary together with the heads of the following departments of the Curial Offices / Central Services: Evangelisation, Youth, Education, Caritas, Safeguarding, Human Resources, Finance, Property, Maintenance, Fundraising, Communications and ICT.

The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and its subsidiaries, and the income and expenditure thereof for that period. In preparing these accounts, the Trustees are required to:

Remuneration for key management personnel is set by the Human Resources Committee, taking into account the market rates for similar roles, and is periodically reviewed by the committee in order to recognise and reward outstanding performance.

• select suitable accounting policies and then apply them consistently; • observe the methods and principles of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102);

Organisation The Charity is governed by the Trustees, who meet regularly throughout the year to attend to the financial, property, legal and administrative affairs of the diocese. A subset of Trustees comprises the Finance Board, which deals with the day-to-day financial operations of 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

The Trustees have instituted a number of committees to assist them and advise them in the proper performance of their duties, including:

• prepare the accounts on the going concern basis, unless it is inappropriate to presume that the Charity will continue in operation.

Audit and Risk Committee, which has delegated responsibility for ensuring that a framework of accountability exists and operates effectively within the Charity; for examining and reviewing all systems and methods of control, both financial and otherwise, including risk analysis and risk management; and for ensuring that the Charity complies with all applicable aspects of the law, relevant regulations and good practice.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Human Resources (HR) Committee, which is responsible for reviewing any major changes in diocesan HR strategy, employment law or employee benefits and making recommendations to the Trustees; and for ensuring that all diocesan HR policies, practices and procedures are complete, are professionally and legally

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 40

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

administered, fully meet all current and future UK employment legislation, accord with Westminster Roman Catholic Diocesan Trust’s Memorandum and Articles of Association and with the social and moral teaching of the Catholic Church, and, where appropriate, also accord with the provisions of canon law.

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.

Property Committee, which has delegated responsibility for both advising and making recommendations to the Trustees on all property matters across the diocese; for carrying out, under devolved powers, any necessary advisory work that it sees fit; and for exercising oversight of strategic decisions relating to property matters, taking into account both the civil law of England and Wales and canon law.

The diocese has a Council of Priests which meets at least twice a year with the Archbishop to discuss and advise him on a range of issues. The Council is composed of all 22 deans, 22 additional representatives, one from each of the 22 deaneries, together with the Auxiliary Bishops and a number of other senior priests of the diocese. At the re-establishment of the Catholic Church hierarchy in 1850 each diocesan Bishop was empowered to appoint a chapter of canons to take responsibility for the organisation and maintenance of his cathedral. In the Diocese of Westminster 18 senior priests constitute the Chapter of Canons and are consulted by the Archbishop on important diocesan matters. They are also constituted as the ‘College of Consultors’ to fulfil the legal requirements of Canon 502 s.3.

Investment Committee, which is responsible for reviewing and developing investment objectives and risk priorities, and for ensuring that the Charity’s investment objectives are implemented effectively and within desirable risk and ethical parameters. The committee monitors progress towards the successful implementation of the above on a quarterly basis. Education Commission, which is responsible for all areas related to education, in schools, academies and colleges, as set out in canon law and English law. Appointed by the Cardinal Archbishop as a decisionmaking body which acts in his name, it is responsible to the Trustees for the financial aspects of both providing and maintaining Catholic Education in the diocese.

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

Caritas Advisory Board, which is responsible for advising and reviewing the activity of Caritas Westminster, ensuring that programmes and investments accord with stated objectives and achieve desired impacts.

The three main risks facing the Charity, as identified by the Trustees, are (1) safeguarding; (2) ensuring appropriate, quality education is provided across the diocesan Catholic schools while maintaining the Catholic ethos; and (3) the continuing financial sustainability of the Westminster Roman Catholic Diocesan Trust.

Further details of the membership of all diocesan committees can be found on page 79. Supplementing the above diocesan committees is a Pension Board, which is responsible for ensuring compliance with all the rules and regulations pertaining to the various pension schemes of the diocese, for which the Charity nominates Pension Trustees, who meet on a quarterly basis to review and apply any changes to regulation or compliance requirements.

Safeguarding ‘Being loved and being kept safe go to the very core of the Church’s ministry’ (Safeguarding with Confidence 2007). The safeguarding of children and of adults at risk is of paramount importance to the Westminster Roman Catholic Diocesan Trust. Failing to prevent abuse of the vulnerable has serious repercussions for the individual, the mission of the Church and the diocese. The consequences of abuse of individuals can be grave and long-lasting. The Charity’s aim is to prevent this from happening to children or adults at risk, whilst in the care of the Church.

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 representation and their classification as ‘restricted funds’. Also, under canon law, each parish must have a finance committee to help the incumbent parish priest in the proper administration of the parish and its finances.

To mitigate this risk, the Charity follows the policies and procedures put in place by the Catholic Church in England Page 41

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee – Year to 31 December 2016

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

These are fundamental changes, which substantially impact upon the educational framework of the Westminster Roman Catholic Diocesan Trust and, in particular, the most vulnerable of the schools.

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

As a charity, the Westminster Roman Catholic Diocesan Trust has a demanding list of programmes it would like to achieve and support. These programmes include enhancing parish community spaces, educating young people and taking care of our neighbours and the poor. Monetary assets are one of the many enablers used to help get the works completed. Thus the financial health of the Charity is crucial in ensuring that its objectives are achieved year in and year out in a sustainable manner.

In December 2016, the Trustees announced their policy toward the academisation of schools. It has proposed that schools be geographically grouped into multi academy trusts. The Trustees believe this model will provide more support for the challenges that the schools will face and improve the standards of education and the formation provided to pupils. In the meantime, the Charity is increasing support for schools, creating networks and ensuring vigilance in financial matters. The Education Commission retains canonical oversight of diocesan schools in maintaining the Catholic ethos, even if they are converted to academies. Financial Sustainability and Resilience of the Charity

Education The Charity contributes to the education of around 92,000 pupils of all backgrounds, of all faiths and none, through its 215 schools. The Charity’s goal is to ensure that every pupil receives the best possible formation, despite the many challenges involved in achieving this.

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

One of the risks identified is potential underperformance of diocesan schools. To ensure that a proper standard of education is provided to the pupils of each school, the Trustees, via the Education Commission and the Education Service, regularly monitor Ofsted results. If a school receives notice that it ‘Requires Improvement’, the Education Service provides support to help it improve to the necessary standard. Additionally, the Charity, through Section 48, inspects each school for the quality of Catholic Life and formation of its pupils.

The income of the Charity is susceptible to external economic shocks. For this reason, there are initiatives in place to address fundraising and asset management in a systematic manner. The majority of the Charity’s operational income is from parishioners’ contributions and the level of donations is dependent upon the general economic environment. To ensure the financial viability of parishes, the Trustees encourage each parish to save for the long-term future.

The Charity also encourages co-operation between various schools and the sharing of resources. This not only happens within the Catholic Academy Trusts that have been established but across all schools within the Charity. The Catholic school network allows for best practices to be shared and practical support to be provided to schools in need.

For the overarching long-term liabilities of the Charity, the Trustees have a more direct approach in addressing the foreseen funding shortfall by more focused fundraising. Starting in 2012, the Charity had a major fundraising drive, Growing in Faith, not only to help with needs in the parishes but also to address the forecasted funding shortfall in the priests training fund and for the care of sick and retired priests. Due to the immense generosity of our parishioners, the forecasted need for funding has

An additional risk facing the Catholic school system is recent legislative change on the provision of education services. The Charity is currently facing many changes, including several policies on the academy programme, alterations to the school funding regime and cuts to government and local authority funding for education. Page 42

Diocese of Westminster Annual Report & Accounts 2016

Report of the Directors of the Corporate Trustee â&#x20AC;&#x201C; Year to 31 December 2016

been addressed for the near future. Nevertheless, the growing number of priests going into retirement and the increasing costs of training new priests and permanent deacons still pose a challenge in the long term. On the expenditure and investment side, the Charity has financial management processes to assess and approve investment decisions, taking into consideration risk and impact on its financial health. Major projects, particularly school projects, are monitored on a monthly basis to ensure that the expenditure is within approved budget as well as being on time and within scope. Additionally, for the central service functions and agencies the Charity has an annual budgetary process which ensures proper yearly funding of the operations. The Trustees encourage the parishes also to complete annual budgets. Finally, the volatility of the financial markets is one of the biggest risks facing the Charity. As volatility impacts investments, it also affects the ability of the Trustees to fund future activity by reducing the level of free reserves. In light of this, the Trustees have adopted an appropriate investment risk strategy. The Trustees continually monitor the performance of the investment fund with the advice of the Investment Committee. Signed on behalf of the Trustees:

Trustee Approved by the Board on: 19 September 2017

Page 43

Diocese of Westminster Annual Report & Accounts 2016

Independent auditor’s report

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

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.

We have audited the accounts of the Westminster Roman Catholic Diocesan Trust for the year ended 31 December 2016, which comprise the consolidated statement of financial activities, the consolidated and parent charity balance sheets, the consolidated statement of cash flows, the principal accounting policies and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Opinion on the accounts In our opinion the accounts: • give a true and fair view of the state of the affairs of the Group and the Charity as at 31 December 2016 and of the Group’s income and expenditure for the year then ended;

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

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

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

• sufficient accounting records have not been kept; or • the accounts are not in agreement with the accounting records and returns; or

We have 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.

• we have not received all the information and explanations we require for our audit.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

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

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Date: 22 September 2017

Page 44

Diocese of Westminster Annual Report & Accounts 2016

Consolidated statement of financial activities – Year to 31 December 2016

Parochial funds

Curial funds Unrestricted funds Notes £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2016 £’000

Total 2015 £’000

Income: Donations and legacies . Grants receivable

–

5,045

–

5,045

–

. Growing in Faith

–

8,020

–

8,020

5,898

. Other donations and legacies

282

1,947

2,229

26,827

29,056

29,265

Assessments

121

–

121

–

121

119

. Commercial trading operations

134

–

134

620

754

784

Investment income and interest receivable

734

227

961

2,003

2,964

2,513

575

–

575

1,426

2,001

2,032

1,194

362

1,556

6,376

7,932

8,745

Other trading activities

Charitable activities . Rental income from functional properties . Parish and similar activities

Other income . Net gains on disposal of tangible fixed assets

–

6,164

3,040

15,601

18,641

37,253

55,894

55,520

–

481

485

509

12,518

10,600

23,118

26,600

49,718

39,515

12,522

10,600

23,122

27,081

50,203

40,024

(9,482)

5,001

(4,481)

10,172

5,691

15,496

–

(1,749)

1,749

–

– –

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

Transfers between funds . Growing in Faith . Assessments

5,276

–

5,276

(5,276)

–

. Other

2,172

(2,238)

(66)

–

7,448

(3,987)

3,461

(3,461)

–

(2,034)

1,014

(1,020)

6,711

5,691

15,496

2,357

1,224

3,581

5,497

9,078

6,345

323

2,238

2,561

12,208

14,769

21,841

(1,579)

–

(1,579)

–

(1,579)

246

(1,256)

2,238

982

12,208

13,190

22,087

Total funds brought forward at 1 January

38,060

34,223

72,283

143,929

216,212

194,125

Total funds carried forward at 31 December

36,804

36,461

73,265

156,137

229,402

216,212

Net income before investment gains Net gains on investments Net income Actuarial (losses) gains

Net movement in funds Reconciliation of funds

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

Page 45

Diocese of Westminster Annual Report & Accounts 2016

Consolidated balance sheet – 31 December 2016

Notes

Curial £’000

Parochial £’000

Total 2016 £’000

Total 2015 £’000

Tangible assets

19,371

87,684

107,055

98,577

Programme related investments

8,666

–

8,666

2,909

Investments

34,331

39,989

74,320

72,681

62,368

127,673

190,041

174,167

–

Fixed assets

Current assets Stocks Debtors

Cash at bank and in hand

3,140

2,214

5,354

5,857

25,441

29,093

54,534

49,775

28,581

31,381

59,962

55,693

(6,971)

(2,577)

(9,548)

(12,462)

21,610

28,804

50,414

43,231

340

(340)

–

21,950

28,464

50,414

43,231

Current liabilities Creditors: amounts falling due within one year

Net current assets before adjustment for inter-fund indebtedness Elimination of inter-fund indebtedness Net current assets Total assets less current liabilities Creditors: amounts falling due after one year

84,318

156,137

240,455

217,398

(8,250)

–

(8,250)

–

76,068

156,137

232,205

217,398

(2,803)

–

(2,803)

(1,186)

73,265

156,137

229,402

216,212

Total net assets excluding pension liability Pension liability Total net assets including pension liability The funds of the Group Restricted funds . Growing in Faith

17,851

–

17,851

15,149

. Other restricted funds

18,610

156,137

174,747

163,003

36,461

156,137

192,598

178,152

Unrestricted funds . Designated funds

610

–

610

1,775

. Tangible fixed assets fund

19,288

–

19,288

17,816

. Programme related investments fund

8,666

–

8,666

2,909

11,043

–

11,043

16,746

(2,803)

–

(2,803)

(1,186)

. General funds .. Free reserves .. Pension reserve

Approved by the Trustees and signed on their behalf by:

Trustee Approved on: 19 September 2017 Page 46

8,240

–

8,240

15,560

73,265

156,137

229,402

216,212

Diocese of Westminster Annual Report & Accounts 2016

Charity balance sheet – 31 December 2016

Notes

Total 2016 £’000

Total 2015 £’000

Tangible assets

106,914

98,427

Programme related investments

8,666

2,909

Investments

71,830

70,191

187,410

171,527

Fixed assets

Current assets Debtors

Cash at bank and in hand

6,242

5,650

52,107

47,949

58,349

53,599

(21,582)

(24,634)

36,767

28,965

224,177

200,492

(8,250)

–

215,927

200,492

Current liabilities Creditors: amounts falling due within one year

Net current assets Total assets less current liabilities Creditors: amounts falling due after one year

Total net assets excluding pension liability Pension liability

Total net assets including pension liability

(2,803)

(1,186)

213,124

199,306

The funds of the Charity Restricted funds . Growing in Faith

17,851

15,149

. Other restricted

158,469

146,097

176,320

161,246

Unrestricted funds . Designated funds

610

1,775

. Tangible fixed assets fund

19,288

17,816

. Programme related investments fund

8,666

2,909

11,043

16,746

(2,803)

(1,186)

8,240

15,560

213,124

199,306

. General funds .. Free reserves .. Pension reserve

Approved by the Trustees and signed on their behalf by:

Trustee Approved on: 19 September 2017 Page 47

Diocese of Westminster Annual Report & Accounts 2016

Consolidated statement of cash flows – Year to 31 December 2016

Notes

2016 £’000

2015 £’000

5,899

11,393

2,964

2,513

6,333

(10,821)

(7,706)

(8,666)

(2,909)

(61)

Cash flows from operating activities: Net cash provided by operating activities Cash flows from investing activities: Investment income and interest received Proceeds from the disposal of tangible fixed assets Purchase of tangible fixed assets Expenditure on programme related investments Repayment by (investment in) joint venture Proceeds from disposals of investments Net cash used in investing activities

7,084

–

(9,390)

(1,830)

Cash flows from financing activities: Cash inflows from new borrowing

8,250

–

Change in cash and cash equivalents in the year

4,759

9,563

Cash and cash equivalents at 1 January

49,775

40,212

Cash and cash equivalents at 31 December

54,534

49,775

Notes to the consolidated statement of cash flows for the year to 31 December 2016 A

Reconciliation of net movement in funds to net cash flow from operating activities 2016 £’000 13,190

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

2015 £’000 22,087

Adjustments for: –

1,662

3,042

3,128

Gains on investments

(9,078)

(6,176)

Investment income and interest receivable

(2,964)

(2,513)

Surplus on disposal of tangible fixed assets

(1)

(6,164)

Write off of programme related investment

2,909

–

(230)

1,579

(246)

Impairment charge Depreciation charge

Pension costs less contributions payable Actuarial losses (gains) (Increase) decrease in stocks

(13)

Decrease in debtors

503

3,380

(3,306)

(3,540)

5,899

11,393

2016 £’000 54,534

2015 £’000 49,775

Decrease in creditors Net cash provided by operating activities

Analysis of cash and cash equivalents

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

Page 48

Diocese of Westminster Annual Report & Accounts 2016

Principal accounting policies – 31 December 2016

• assessing the recoverability of outstanding debtors and the need for any provision for bad or doubtful debts;

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

• assessing the appropriateness of the assumptions and methodology used by the scheme actuary in the valuation of the defined benefit pension scheme; and

Basis of preparation These accounts have been prepared for the year to 31 December 2016 with comparative information provided for the year to 31 December 2015.

• determining the value of designated funds needed at the year end to meet specific future expenditure.

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

Assessment of going concern The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect of a period of one year from the date of approval of these accounts.

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

The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 December 2017, the most significant areas that affect the carrying value of the assets held by the Charity are the level of investment return, the performance of the investment markets and property values (see the investment policy and the risk management sections of the report of the Directors of the Corporate Trustee for more information).

The Charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded to the nearest thousand pounds. Critical accounting estimates and areas of judgement Preparation of the accounts requires the Trustees and management to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include:

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 charitable and trading subsidiaries are clearly shown in the consolidated statement of financial activities and supporting notes.

• assessing the probability of the receipt of legacy income; • estimating accrued expenditure including employees’ accrued holiday pay; • estimating the useful economic life of tangible fixed assets for the purposes of determining a depreciation charge;

The accounts also include the net assets and transactions of other charities under the control of the Directors of the Corporate Trustee and whose activities are integral to those of the Westminster Roman Catholic Diocesan Trust and the furtherance of its objectives. Such charities (see note 23) have been incorporated into the accounts as special trusts (or restricted funds).

• estimating the fair value of listed investments for which defined market prices were not available at the balance sheet date; • assessing the appropriateness of the assumptions and methodology used in determining the fair value of investment properties; • assessing the need for any provision against slow moving and/or obsolete stock within Westminster Cathedral Limited;

The accounts do not include the results and net assets of connected entities (see note 22). Page 49

Diocese of Westminster Annual Report & Accounts 2016

Principal accounting policies â&#x20AC;&#x201C; 31 December 2016

Income recognition

reasonable accuracy and the title of the asset having being transferred to the Group and/or Charity.

Income is recognised in the period in which the Group and/or Charity has entitlement to the income, where the amount of income can be measured reliably and it is probable that the income will be received.

Income generated from the commercial trading activities of trading subsidiaries comprises income from the sale of merchandise, concerts and similar performances of the Westminster Cathedral Choir and building development projects. It is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income comprises donations, legacies and grants; income from commercial trading activities of trading subsidiaries; investment income and interest receivable; rental income from functional properties; income from parish and similar activities, and net gains on the disposal of tangible fixed assets.

Investment income is recognised once the dividend has been declared and notification has been received of the dividend due.

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

Interest on funds held on deposit is included when it is receivable and the amount can be measured reliably by the Charity; this is normally upon notification from the bank of the interest payable or paid. Income from the rental of functional properties is recognised when the income is receivable under the contract for hire or lease document, when the amount can be measured reliably and it is probable such income will be received. Income from parish and similar activities is defined more specifically in note 5 to these accounts and is recognised in each instance when the relevant parish has entitlement to the income, the amount can be measured reliably and it is probable that the income will be received.

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

The surplus on the disposal of tangible fixed assets is calculated as the difference between the sale proceeds net of sale costs and the net book value of the asset immediately prior to disposal. It is accounted for once legal completion of the disposal has taken place.

Entitlement is taken as the earlier of: the date on which the Group and/or Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the Group and/or Charity that a distribution will be made, and the date on which a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Group and/or Charity has been notified of the executorâ&#x20AC;&#x2122;s intention to make a distribution. Where legacies have been notified to the Group and/or Charity, or where the Group and/or Charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of

Other income is measured at fair value and accounted for on an accruals basis. Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Group and/or Charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows: â&#x20AC;˘ Expenditure on raising funds comprises the costs incurred by subsidiary companies in connection with their commercial trading operations. Page 50

Diocese of Westminster Annual Report & Accounts 2016

Principal accounting policies – 31 December 2016

• Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the Charity and its subsidiary charities through the provision of charitable activities. Such costs include staff costs and other direct overheads attributable to those purposes. A detailed analysis of the expenditure is provided in note 6.

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

Charitable donations in support of Catholic foundations and projects are included in the statement of financial activities in the year when approval is granted and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued for but are disclosed as financial commitments in the notes to the accounts.

No value is identified in the accounts in respect to freehold land. Freehold buildings are depreciated at rates calculated to write off their estimated historic cost, on a straight line basis, as follows:

All expenditure is stated inclusive of irrecoverable VAT.

• Listed properties - 200 to 300 years

Support and governance costs

• Other properties - 100 years

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

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.

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

Whilst the Charity is the legal owner of over 200 school properties within the diocese comprising voluntary aided schools and academies, many of which are separate exempt or excepted charities funded through combinations of government grants and voluntary contributions, the nature of the occupation of these properties 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.

Voluntary aided and grant maintained schools and academies

All support costs and governance costs are included within the expenditure of the one principal charitable activity of the Group and/or Charity i.e. advancing the Catholic faith primarily within the Diocese of Westminster. Functional freehold property

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.

Functional freehold properties, comprising the cathedral, churches, presbyteries, halls and similar buildings owned by the Group and/or Charity prior to 1997, are included in the balance sheet at an estimate of their original cost. These estimates were arrived at by discounting the 1997 insurance values of the properties by reference to the inflation statistics from 1997 back to the date on which the properties were acquired or built. For the purpose of these accounts, and consistent with the transitional rules set out in FRS 102, the 1997 valuations are defined as “deemed cost”.

Any expenditure incurred on the fabric of these buildings is written off in the year it is incurred and treated in these accounts as expenditure on the advancement of the Catholic faith primarily in the Diocese of Westminster.

Additions to functional freehold properties since January 1998 are included in the accounts at cost or, where such assets have been donated or bequeathed to the Group Page 51

Diocese of Westminster Annual Report & Accounts 2016

Principal accounting policies – 31 December 2016

Properties held for investment purposes are included in these accounts at open market value. The valuations are determined by the Trustees, with professional assistance. Details of the dates and bases of the valuations are given in Note 12 to the accounts. Disposals of investment properties are accounted for on completion.

The governors are responsible for the buildings, and for the repair and refurbishment and insurance costs thereof, and for accounting for any grants received in respect of any of these costs. The Charity assists governors in managing projects and may make grants via the Curial Offices / Central Services 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, as at the balance sheet date, are treated as debtors or creditors respectively on the balance sheet.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and either their opening carrying value, or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value and the carrying value at year end. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

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

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

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:

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

• Office equipment - 20%

Programme related investments are significant financial contributions made by the Charity towards the development or refurbishment of property assets to which the Charity has freehold title but which are used by other charitable and not-for-profit organisations (including Schools) for purposes consistent with the Charity’s own objectives.

• 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

Programme related investments are included in the accounts at cost with any permanent diminution in value below such cost accounted for as charitable expenditure.

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.

Stocks

Fixed asset investments

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

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

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

The Charity currently does not acquire put options, derivatives or other complex financial instruments. As noted above one of the financial risks the Charity is exposed to is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or that have a maturity of less than three months from the date of investment or acquisition. Page 52

Diocese of Westminster Annual Report & Accounts 2016

Principal accounting policies – 31 December 2016

Creditors and provisions

The net interest on the net pension liability and the cost of benefit changes, curtailments and settlements are included as expenditure in the statement of financial activities. Actuarial gains and losses are included in the statement of financial activities as other recognised gains and losses.

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

Employer’s contributions in respect of the Charity’s defined contribution scheme were charged to the statement of financial activities in the year in which they were payable to the scheme until the scheme was closed on 31 March 2015.

Fund structure

All eligible members of staff are auto-enrolled in a workplace pension scheme. Employer contributions to the scheme are charged to the statement of financial activities in the year in which they are payable to the scheme.

• The Curial Funds These can be used across the whole of the diocese and are subdivided between: – Restricted funds: monies received for, and whose use is restricted to, a specific purpose, or donations subject to donor-imposed conditions. – Designated funds: monies set aside out of general funds and designated by the Directors of the Corporate Trustee to be used for specific purposes. – The tangible fixed assets fund: the net book value of those tangible fixed assets held by the curia for unrestricted purposes. – The programme related investments fund: the value of the Group’s and Charity’s programme related investments. – General funds: monies which may be used to meet the charitable objectives of the Charity, across the whole of the diocese, at the discretion of the Directors of the Corporate Trustee. • The Parochial Funds These comprise legacies, donations, trust income and interest relating to individual parishes. Under canon law these monies must be utilised by the parishes and therefore 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 benefit pension scheme, closed for accrual of benefits since 2005, providing benefits based on final pensionable salary. 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. Page 53

2016 Annual Report & Accounts

Diocese of Westminster

Notes to the accounts – 31 December 2016

Donations and legacies

Parochial funds

Curial funds Unrestricted funds £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2016 £’000

Grants receivable

–

5,045

–

5,045

–

Growing in Faith

–

8,020

–

8,020

5,898

Other donations

202

1,796

1,998

24,721

26,719

26,740

151

231

2,106

2,337

2,525

Total 2016

282

15,012

15,294

26,827

42,121

35,163

Total 2015

1,965

7,449

9,414

25,749

35,163

Legacies

Total 2015 £’000

Assessments Six parishes operated by specific religious congregations are not consolidated into these accounts. Income from assessments (£121,000 in 2016 and £119,000 in 2015) represents monies received by the Charity from those parishes and is unrestricted. The diocesan assessment, being monies transferred from parishes to the curia in order to fund diocese-wide programmes, is included under ‘Transfers between funds’. In 2016, £5,276,000 was transferred from parochial funds to curial funds (2015 - £5,228,000).

3 I ncome from other trading activities and cost of raising funds These categories of income and expenditure comprise the income and expenditure of the Charity’s trading subsidiaries. At 31 December 2016 the Charity owned the entire called up ordinary share capital of the following trading companies: Company

Country of incorporation

Principal activity

Aedificabo Limited

England

Management of capital projects

Westminster Cathedral Limited

England

Miscellaneous trading activities

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

Turnover Cost of sales

Unrestricted funds

Restricted funds

Aedificabo Limited

Westminster Cathedral Limited

2016 £’000 134

2015 £’000 135

2016 £’000 620

2015 £’000 649

—

–

(306)

(320)

Gross profit

134

135

314

329

Administrative expenses

(75)

(74)

(175)

(183)

Profit on ordinary activities before Gift Aid and taxation Gift Aid Loss for the year

139

146

(59)

(61)

(139)

(146)

–

Administrative expenses include amounts recharged by the Charity and eliminated on consolidation of £71,000 (2015 - £68,000). At 31 December 2016 the called up share capital of Westminster Cathedral Limited comprised 2 ordinary £1 shares and its reserves amounted to £4,343 (2015 - £4,343). At 31 December 2016 the called up share capital of Aedificabo Limited comprised 2 ordinary £1 shares and its reserves amounted to £nil (2015 - £ nil). Page 54

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Investment income and interest receivable Parochial funds

Curial funds Unrestricted funds £’000

Restricted funds £’000

Total funds £’000

Restricted funds £’000

Total 2016 £’000

Total 2015 £’000

Income from listed investments

181

268

125

393

399

Income from programme related investments

147

–

147

–

147

–

Rents and similar income

237

126

363

1,832

2,195

1,936 2,335

Investment income

565

213

778

1,957

2,735

Interest receivable

169

183

229

178

Total 2016

734

227

961

2,003

2,964

2,513

Total 2015

299

212

511

2,002

2,513

All rents are from properties situated in the United Kingdom.

Income from charitable activities

Curial unrestricted funds

2016 £’000 575

2015 £’000 736

Parochial restricted funds

1,426

1,296

2,001

2,032

Rental income from functional properties

The Charity and Group own a number of properties which are used primarily for activities oriented towards achieving the Charity’s and/or the Group’s mission. However, within such properties, certain halls and rooms are occasionally rented out, often for purposes consistent with the charitable objectives of the Charity and resulting in the income shown above.

2016 £’000 71

Parish and similar activities Income from clubs

2015 £’000 110

Chaplaincies

Catechetics

346

318

2,496

2,472

Candles, repository and newspapers

103

Parish centres

1,578

1,561

Parish activities

1,238

1,213

Board and lodging

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

528

971

6,376

6,782

362

359

1,194

1,604

7,932

8,745

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

Page 55

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Expenditure on the advancement of the Catholic faith primarily in the Diocese of Westminster

Expenses incurred by the Charity in offering religious and pastoral services and educational programmes through its chaplaincies, through its schools, and through its social outreach agencies coordinated by Caritas Westminster are paid from curial funds. The table below provides a detailed breakdown of these expenses for the year. Unrestricted funds £’000 339

Restricted funds £’000 –

Total 2016 £’000 339

Total 2015 £’000 344

Communications

164

–

164

152

Safeguarding

177

–

177

130

Auxiliaries and vicar general

789

–

789

774

Clergy and consecrated life

654

623

1,277

1,241

Curial funds Cardinal’s office and Archbishop’s House

Ecumenical and interfaith

–

Education and formation

891

362

1,253

1,227

Pastoral and related work

2,837

1,528

4,365

3,559

Growing in Faith projects

–

3,034

151

Impairment of tangible fixed assets

–

1,662

National bodies Administration Bank loan interest

389

–

389

355

2,839

–

2,839

3,258

147

–

147

–

School projects (see note 11) 2,284

5,045

7,329

–

.St Anne’s school

316

–

316

–

Miscellaneous

542

–

542

400

Governance costs

103

111

Total 2016

12,518

10,600

23,118

13,396

Total 2015

12,032

1,364

13,396

.St Richard Reynolds school

Depreciation of £379,000 is included in the above curial fund expenditure.

School and academy building works 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 £29,529,000 (2015 - £30,756,000).

During the year, the Group and Charity recognised expenditure of £7,329,000 on St Richard Reynolds school, a voluntary aided school which cannot be disposed of in the open market whilst occupied by the school. This expenditure is included in the above table. Grants of £5,045,000 (see note 1) towards the cost of the building works were received, mainly from the Roman Catholic Archdiocese of Southwark. In the year ending 31 December 2017 it is anticipated that a further £9 million will be expended on the building works.

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 expenditure in the statement of financial activities.

During the year, the Group and Charity received, as agent, Government grants of £23,870,000 (2015 - £29,580,000) in connection with major repair and capital projects at Church schools and academies in the diocese. These monies, together with the contributions received from

Page 56

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Expenditure on the advancement of the Catholic faith primarily in the Diocese of Westminster (continued)

Parochial restricted funds Religious and pastoral services and educational programmes offered by the Charity through its parishes are funded by the parishes themselves. A detailed breakdown of expenses paid during the year from parochial restricted funds is provided in the table below. Parochial restricted funds Non-clergy salaries Property repairs and renewals Clergy stipends Non property 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 asset depreciation Travel expenses Miscellaneous expenses Bank interest Mass stipends distributed Governance costs

2016 £’000

2015 £’000

5,242 3,885 2,303 1,676 1,745 1,295 995 1,016 1,767 1,178 1,325 354 1,215 379 405 987 233 409 61 125 5 26,600

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

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

Page 57

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Net (expenditure) income before transfers and investment gains

This is stated after charging: Parochial funds

Curial funds Unrestricted funds £’000 4,687

Group Staff costs (note 8)

Restricted funds £’000 567

Total funds £’000 5,254

Restricted funds £’000 5,229

Total 2016 £’000 10,483

Total 2015 £’000 9,859

Auditor’s remuneration . Audit fees 2016

. Audit fees 2015

—

. Other services

—

378

379

2,663

3,042

3,128

Depreciation (note 10)

Staff costs and remuneration of key management personnel 2016 £’000

2015 £’000

9,509

8,945

Social security costs

700

649

Other pension costs

274

265

10,483

9,859

Group Staff costs during the year were as follows: Wages and salaries

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

Charitable activities

2016 2016 Total FTE Employees 330 665

2015 2015 Total FTE Employees 325 636

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

2016

2015

£60,001 - £70,000

£70,001 - £80,000

£90,001 - £100,000

£100,001 - £110,000

–

£110,001 - £120,000

–

Page 58

Employer contributions totalling £42,167 (2015 - £29,862) were made to defined contribution schemes in respect of all those employees who earned £60,000 or more during the year (as defined above). The key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day to day basis comprise the Directors of the Corporate Trustee, the COO / Financial Secretary and the heads of the following departments of the Curial Offices / Central Services: Evangelisation, Youth, Education, Caritas, Safeguarding, Human Resources, Finance, Property, Maintenance, Fundraising, Communications and ICT. The total remuneration (including taxable benefits and employer’s pension contributions) of the key management personnel for the year was £871,400 (2015 - £849,249). A number of the Directors of the Corporate Trustee (i.e. Trustees) are clergy of the Diocese of Westminster. They are housed and remunerated by the diocese and are reimbursed expenses for carrying out their ministry in the same way as other priests of the diocese. However, none of the Trustees received any remuneration in respect of their services as a Trustee during the year (2015 - £nil), nor were they reimbursed any expenses connected with their duties as Trustees (2015 - £nil).

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Staff costs and remuneration of key management personnel (continued)

Pension schemes Defined benefit scheme The Charity administers 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 are determined on the basis of triennial valuations by a qualified actuary using the projected unit method.

The following information is based upon an actuarial valuation of the scheme at 31 December 2016 by a qualified independent actuary. The major assumptions used by the actuary were:

From 6 July 2005 accrual of benefits, death in service benefits and member contributions ceased. The level of funding has been reviewed on a yearly basis and for the years ended 31 December 2015 and 2016, deficit recovery contributions were £25,242 per month. The most recent valuation, at 6 April 2016, showed that the market value of the scheme’s assets was £7,050,000 and that the level of funding on an ongoing basis was 81%. The principal assumptions made were that the discount rate would be 4.1% per annum before retirement and 2.9% per annum after retirement, and that inflation linked increases to deferred pensions would be 2.55% and that inflationlinked pension increases in payments would be 3.05% per annum for service between 1 July 2002 and 11 February 2003, and 2.35% per annum for service from 12 February 2003. No allowance was made for possible discretionary increases in pensions beyond those prescribed in the scheme rules.

31 Dec 2016 % per annum

31 Dec 2015 % per annum

Inflation

3.5

3.4

Salary increases

2.5

2.4

Rate of discount

2.8

3.9

Rate of increase in pensions in payment and deferred pensions

2.5

2.4

2016 years

2015 years

Men

22.5

22.2

Women

24.6

2016 £’000 3,487

2015 £’000 2,653

Corporate bonds

256

154

Government bonds and index linked bonds

368

486

The mortality assumptions used were:

Longevity at age 65 for current pensioners

The assets and liabilities in the scheme were:

Financial Reporting Standard 102 requires the surplus or deficit on the scheme as at 31 December 2016, calculated in accordance with the requirements of FRS 102, to be included on the balance sheet. For the purposes of FRS 102, the assets of the scheme have been taken at market value and the liabilities have been calculated by a qualified independent actuary.

Equities

Property

131

Annuities

2,941

3,045

Cash

1,680

741

Alternative investments

Total assets Present value of scheme liabilities Deficit in the scheme – net pension liability

8,908

7,175

(11,711)

(8,361)

(2,803)

(1,186)

The net pension liability increased from £1,186,000 in 2015 to £2,803,000 in 2016.

Page 59

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Staff costs and remuneration of key management personnel (continued)

Pension schemes (continued) Defined benefit scheme (continued) The deficit increase is largely the result of a significant fall in corporate bond yields combined with increases in long-term inflation expectations. These effects were not entirely offset by asset returns and deficit contributions during the year. Additionally, on 9 November 2016, four members of a separate money purchase pension scheme, also sponsored by the Trustee, transferred into the scheme in exchange for a final salary pension benefit with the consent of the Employer and Trustees. As a result, the scheme became solely responsible for the additional liabilities arising from these members. The effect of the transfer-in was an increase in the deficit of £445,000. Contributions The total contributions made by the employer in the year were £459,000 (2015 - £303,000) including an extraordinary annual contribution of £150,000 – the first of three such extraordinary annual contributions – as a result of the transfer-in of four additional members in November 2016. The contributions to be paid by the employer to the scheme for the year ending 31 December 2017 are £453,000, Total operating charge and net interest recognised in the statement of financial activities:

Administration costs

2016 £’000 (17)

2015 £’000 (18)

Losses on curtailments and settlements

(445)

—

Total operating charge

(462)

(18)

Interest income on scheme assets

291

256

Interest cost on scheme liabilities

(326)

(311)

(35)

(55)

(497)

(73)

Net interest on net defined benefit liability Total amount recognised in the statement of financial activities

Net (losses) gains recognised in the statement of financial activities: 2016 £’000

2015 £’000

260

(244)

Actuarial (losses) gains on Scheme obligations

(1,839)

490

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

(1,579)

246

Actual return on assets excluding amounts included in net interest

Page 60

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Staff costs and remuneration of key management personnel (continued)

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

Opening defined benefit obligation

2016 £’000 8,361

2015 £’000 8,768

326

311

Actuarial losses (gains)

1,839

(490)

Liabilities on settlements

1,407

–

Administration costs Interest cost

Benefits paid Closing defined benefit obligation

(239)

(246)

11,711

8,361

The reconciliation of the fair value of the scheme assets is as follows: 2016 £’000 7,175

2015 £’000 7,106

Interest income

291

256

Contributions by Westminster Roman Catholic Diocesan Trust

459

303

Actual return on assets excluding amount included in net interest

260

(244)

Opening fair value of scheme assets

962

—

Benefits paid

(239)

(246)

Closing fair value of scheme assets

8,908

7,175

Assets distributed on settlements

The actuarial value of the scheme liabilities as at 31 December 2016 if different key actuarial assumptions had been used is shown below:

-0.5% decrease in discount rate

2016 £’000 12,974

1 year increase in member life expectation

12,180

-0.5% change in inflation

11,200

Page 61

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Staff costs and remuneration of key management personnel (continued)

Pension schemes (continued) Defined contribution scheme and auto-enrolled pension scheme In 2015 the Charity also operated a pension scheme providing benefits based on defined contributions. The Charity contributed 8% of salary and this was matched by employee contributions of 1%, 3% or 4% of salary. The scheme was administered by Friends Life Services Limited. This scheme was closed on 31 March 2015. The Charity now offers an auto-enrolled pension scheme for new employees into which the active members of the above closed scheme were transferred. This scheme is provided by Standard Life. The total contributions made by the employer in 2016 to the auto-enrolled pension scheme amounted to £274,000 (2015 – £265,000).

Taxation

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

Page 62

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Tangible fixed assets

Group

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

Motor vehicles £’000

Total £’000

Cost or valuation 108,955

30,880

347

140,182

9,276

1,545

–

10,821

740 (48)

– (254)

– (27)

740 (329)

118,923

32,171

320

151,414

Original cost

91,521

32,171

320

124,012

Deemed cost - valuation (1997)

26,182

–

26,182

Deemed cost – valuation (2013)

1,220

–

1,220

118,923

32,171

320

151,414

17,011

24,289

305

41,605

1,360

1,668

3,042

(7)

(254)

(27)

(288)

18,364

25,703

292

44,359

At 31 December 2016

100,559

6,468

107,055

At 31 December 2015

91,944

6,591

98,577

108,781

30,724

347

139,852

9,276

1,545

–

10,821

740 (48)

– (254)

– (27)

740 (329)

118,749

32,015

320

151,084

Original cost

91,347

32,015

320

123,682

Deemed cost – valuation (1997)

26,182

–

26,182

Deemed cost – valuation (2013)

1,220

–

1,220

118,749

32,015

320

151,084

16,982

24,138

305

41,425

1,359

1,660

3,033

(7)

(254)

(27)

(288)

18,334

25,544

292

44,170

At 31 December 2016

100,415

6,471

106,914

At 31 December 2015

91,799

6,586

98,427

At 1 January 2016 Additions Reclassification from investment properties (note 12) Disposals At 31 December 2016

Depreciation and impairment At 1 January 2016 Depreciation charge for year On disposals At 31 December 2016 Net book values

Charity Cost or valuation At 1 January 2016 Additions Reclassification from investment properties (note 12) Disposals At 31 December 2016

Depreciation and impairment At 1 January 2016 Depreciation charge for year On disposals At 31 December 2016 Net book values

Page 63

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Tangible fixed assets (continued)

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

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

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

Land and buildings legally owned by the Charity and occupied rent free by Catholic voluntary aided schools and academies, which are separate charities and publicly funded, are valued at £nil for the purposes of these accounts. The Trustees consider that no meaningful value can be attributed to these assets since they are not used directly by the Charity, do not generate income, and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues. Any expenditure incurred on the fabric of these buildings is written off in the year it is incurred and treated in these accounts as expenditure on the advancement of the Catholic faith primarily in the Diocese of Westminster.

During the year, a review of the use of properties classified at 1 January 2016 as functional properties and as investment properties was performed. As a consequence, it was deemed appropriate to reclassify two properties, regarded previously as investment properties, as tangible fixed assets. The values at which these two properties have been included within tangible fixed assets are their market value as determined within the past five years. Original cost figures are not available for these properties and it is deemed appropriate that the valuations be regarded as their ‘deemed cost’ at the point of reclassification.

Net gains on disposal

Capital commitments

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

At 31 December 2016 the Group and Charity had the following capital commitments:

2016 £’000

2015 £’000

Group and Charity

Net gains on property disposals

–

6,158

Land and buildings – functional property

Other gains

6,164

Group and Charity

. Contracted but not provided

Gains on property disposals in 2015 relate to the sale of Our Lady’s School, Limehouse at a gain of £4,832,000 and Laxton Place at a gain of £1,326,000. The proceeds of Laxton Place reverted to Camden Parish, and those from Our Lady’s School, Limehouse, will be used for building schools.

2016 £’000

2015 £’000

3,859

3,085

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

Page 64

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Programme related investments

Programme related investments represents investments made in properties owned by the Charity but which are used by other charitable and not-for-profit organisations for purposes consistent with the Charity’s objectives. In some cases rental income will be received in future years but in other cases no rental agreement will be put in place.

Group and Charity At 1 January Additions Amount written off (see below) At 31 December

2016 £’000 2,909

2015 £’000 –

8,666

2,909

(2,909)

–

8,666

2,909

Programme related investments comprise: 2016 £’000

2015 £’000

–

2,716

–

193

Contributions towards the construction of voluntary aided schools: St Richard Reynolds school, Twickenham St Anne’s school, Enfield The Friary, Westminster

8,666

–

8,666

2,909

St Richard Reynolds school is a primary and secondary school in Twickenham, Richmond which the Westminster Roman Catholic Diocesan Trust continues to build. The project includes: (1) the initial refurbishment of the two existing primary school buildings, towards which cost a small financial contribution will be received from the Department for Education; (2) the construction of a new building to accommodate the new secondary school, which is being funded jointly by the Catholic Dioceses of Westminster and Southwark; and (3) the inclusion within the new building of space to accommodate Strathmore School, a special needs school, which is being fully funded by the London Borough of Richmond. In the year to 31 December 2015, expenditure incurred on this refurbishment project was treated as a programme related investment. However, as the project has continued the Trustees have felt it more appropriate to write off the expenditure as incurred given that, whilst occupation by the School continues, they have no control over the disposal of the asset and no rental income will be receivable. Consequently, the value recognised in 2015 as a programme related investment has been written off as expenditure in the current period.

St Anne’s school is a secondary school in Enfield which the Westminster Roman Catholic Diocesan Trust intends to redevelop. Feasibility works were conducted during the year in respect of proposed alterations of the school site which demonstrated that the project as proposed was not viable. The investment incurred to date was therefore written off in the current period. The Friary is a building adjacent to the cathedral complex that was, historically, part of the Catholic fabric in this location, having been the location of both a Franciscan monastery and the National Catholic Library. It will be leased to the Westminster Cathedral Choir School, a charity connected to the Westminster Roman Catholic Diocesan Trust (see note 22), to house an independent pre-prep school. It is anticipated that in the year to 31 December 2017 a further £2 million will be expended on the property.

Page 65

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Programme related investments (continued)

Post balance sheet event On 10 July 2017 the lease agreement concerning the Friary was signed between the Westminster Roman Catholic Diocesan Trust and the Westminster Cathedral Choir School. The rental income from the lease will be used to finance repayments due on a £10 million, thirty-year loan granted by HSBC Bank plc in March 2016 in order to purchase and refurbish the property (see note 15).

Investments

At 31 December 2016 investments comprised the following:

Listed investments

Group 2016 £’000 33,460

Group 2015 £’000 35,923

Charity 2016 £’000 33,460

Charity 2015 £’000 35,923

Investment properties

40,805

36,697

38,315

34,207

74,320

72,681

71,830

70,191

Joint venture

Listed investments During the year, listed investments under the control of the Westminster Roman Catholic Diocesan Trust principally comprised units in a Mutual Investment Fund. The Mutual Investment Fund comprises investments managed by Sarasin & Partners LLP and CCLA Investment Management Limited. At 31 December 2016 both Group and Charity held 100% of the units in the Mutual Investment Fund. The market value of these units at 31 December 2016 amounted to £32,736,000 (2015 – £35,238,000) and their historical cost as at that date was £27,399,000 (2015 - £31,468,000). Investment managers’ fees of £98,000 in 2016 and £84,000 in 2015 are charged indirectly through the unit holdings. Fees paid to the investment managers directly during the year amounted to £nil (2015 - £nil).

Page 66

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Investments (continued)

Listed investments (continued) At 31 December 2016 the composition of the listed investments comprising the Mutual Investment Fund was as follows: 2016 %

2015 %

6.0

11.0

UK equities

22.0

24.9

Global equities

55.2

46.9

Property

1.1

2.3

Alternatives

6.1

3.7

Liquid assets (money market instruments and cash)

9.6

11.2

100.0

Group and Charity Fixed income

At 31 December 2016, listed investments held as part of the Mutual Investment Fund (the Fund) included the following individual holdings deemed material when compared with the overall valuation of the Fund as at that date:

Group and Charity Sarasin Equisar – Socially Responsible – I Inc

Percentage of fund % 8.1

Value £’000 2,668

9.8

3,194

Sarasin Equisar – Socially Responsible (Sterling Hedged) – I Inc

Listed investments held at 31 December 2016 and their movements during the year were as follows: Group and Charity

2016 £’000

Market value At 1 January

35,923

Disposals

(6,300)

Net realised/unrealised gains during the year – consolidated entities Net realised/unrealised gains during the year – non-consolidated entities At 31 December

3,445 392 33,460

Page 67

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Investments (continued)

Investment properties Investment properties held at 31 December 2016 and their movements during the year were as follows: Group 2016 £’000

Charity 2016 £’000

36,697

34,207

(740)

3,530 (784)

Market value At 1 January Reclassification as tangible fixed assets (note 10) Additions and transfers Disposals Gains on revaluation during the year At 31 December

2,102

40,805

38,315

Investment properties are included in the accounts at valuations carried out from 2012 to 2016. It is the aim of the Directors that properties will each be revalued every five years, unless there is an indication that a valuation has changed by a material amount in which case the valuation date will be brought forward. Certain properties are stated at a valuation determined on an open market basis during 2012 by Albright Surveyors Limited, Chartered Surveyors. In each of 2013 and 2014, Albright Surveyors Limited revalued five of the investment properties on an open market basis. In 2015 and 2016, nine and eighteen properties respectively were revalued by Smith and Knight Property Consultants. These valuations were conducted in accordance with the Practice Statements issued by the Royal Institution of Chartered Surveyors as set out in the Appraisal and Valuation Manual dated September 1995 as amended. It is not possible to ascertain with accuracy the original cost of the investment properties, the majority of which were purchased many years ago. The Trustees are of the opinion that the costs involved in researching such information outweigh the value of disclosing it.

Joint venture The investment in the joint venture represents the Charity’s investment in Parish Accounting Services Limited, a company incorporated in England and Wales (Company Registration No 09503675) on 23 March 2015. Westminster Roman Catholic Diocesan Trust and Birmingham Roman Catholic Diocesan Trust both own one £1 share in the company which has purchased and developed accounting software for use by parishes within Roman Catholic dioceses. Each of the two partners to the joint venture have lent the company £72,000 to enable it to purchase and develop the software. A summary of the trading results and financial position of the company at 31 December 2016 is given below:

Summary statement of income

31 December 2016 £’000

Turnover Cost of sales Gross profit (loss) Administrative expenses Loss on ordinary activities before taxation Taxation Loss for the financial period

Page 68

31 December 2015 £’000

113

(101)

(73)

(7)

(15)

(14)

(3)

(21)

–

(3)

(21)

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Investments (continued)

Joint venture

(continued)

Summary statement of financial position and retained earnings

31 December 2016 £’000

31 December 2015 £’000

105

118

Fixed assets Current assets

Current liabilities

(8)

(7)

Net current assets Total assets less current liabilities Creditors: amounts falling due after one year Total net liabilities

110

123

(134)

(144)

(24)

(21)

The total net liabilities are represented by called up share capital of £2 and accumulated losses. The accumulated losses are shared equally by the two partners. As such, the investment by Westminster Roman Catholic Diocesan Trust as at 31 December 2016 comprises:

Loan balance at 1 January

2016 £’000 61

Share of losses in the year

(1)

Loan repayment in the year

(5)

Loan balance at 31 December

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

Debtors Group 2016 £’000

Group 2015 £’000

Charity 2016 £’000

Charity 2015 £’000

Receivable within one year Sundry debtors Prepayments and accrued income School expenditure recoverable from the Department for Education, Local Education Authorities and contract advances (see below and note 21) Loan to St Etheldreda Trust (see below) Loan to Westminster Cathedral Choir School (see below)

655

949

903

1,363

1,172

1,488

1,812

867

2,361 448

1,936 635

2,361 448

1,936 635

–

142

–

142

116

105

116

105

4,752

5,255

5,640

5,048

Amount due from the Society of Jesus

263

Loan to The Cardinal Hume Centre

339

5,354

5,857

6,242

5,650

Other loans (see below) Receivable after more than one year

Page 69

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Debtors (continued)

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 of work and maintenance to school properties and held by the Charity as custodian trustee. The loan to St Etheldreda Trust is made in accordance with a formal loan agreement for the refurbishment of 13 Ely Place, London EC1N 6RY. The loan attracts interest at the published bank base rate or 1%, whichever is higher. The loan has been repaid since the year end. The loan to Westminster Cathedral Choir School was made in accordance with a formal loan agreement and attracted interest at the published bank base rate or 1%, whichever was higher. It was fully repaid during 2016. Other loans receivable within one year comprise amounts advanced to priests and 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.

Creditors: amounts falling due within one year

School building projects (note 21)

Group 2016 £’000 837

Group 2015 £’000 2,587

Charity 2016 £’000 837

Charity 2015 £’000 2,587

Collections payable to third parties

1,293

1,410

1,293

1,410

PAYE and national insurance

280

243

280

243

Loans (see below)

230

127

230

127

Proceeds relating to the sites of former schools Accruals and sundry creditors Mutual Investment Fund creditors (see below) Funds held on behalf of the Belarusian Catholic Mission Funds held on behalf of the Congregation for the Eastern Churches

–

1,309

–

1,309

1,774

1,566

1,727

1,659

3,981

3,638

16,062

15,717

233

662

233

662

920

9,548

12,462

21,582

24,634

Amounts due in respect to school building projects represent amounts due to contractors in connection with work and maintenance to school properties. The majority of the loans are interest bearing with interest rates linked to bank base rates.

Page 70

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Creditors: amounts falling due within one year (continued)

The Mutual Investment Fund creditors represent the amounts held within the Investment Fund in the Charity’s name but where the beneficial owner is one or more of the charitable subsidiaries or connected charities. The beneficial owners are as follows:

Hare Street House

2016 £’000 597

2015 £’000 584

Westminster Ecclesiastical Education Fund

3,384

3,054

Group total

3,981

3,638

Diocese of Westminster Sick and Retired Priests Fund Westminster Cathedral Trust

6,632 2,991

5,355 4,505

The Moorfields Charity Charity total

2,458

2,219

16,062

15,717

Creditors: amounts falling due after more than one year

Bank loan

Group 2016 £’000 8,250

Group 2015 £’000 –

Charity 2016 £’000 8,250

Charity 2015 £’000 –

On 22 March 2016, the Charity signed a thirty year loan agreement with HSBC Bank plc for up to £10 million. The loan is secured by a first charge mortgage on two of the Charity’s properties. The loan is repayable in quarterly instalments commencing three years after initial drawdown with interest payable at 2% over the base rate. Of the amounts falling due after more than one year, £917,000 is repayable within 2 to 5 years and £7,333,000 is repayable after 5 years.

Page 71

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Restricted funds

Restricted funds comprise: 2016 £’000

2015 £’000

Charity 26,716

25,053

149,604

136,193

176,320

161,246

Subsidiary entities (curial)

9,745

9,170

Subsidiary entities (parochial)

6,533

7,736

192,598

178,152

Curial Parochial Group

Curial restricted funds The income funds of the curia include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purposes: At 1 January 2016 £’000

Income Expenditure £’000 £’000

Net gains £’000

Transfers £’000

At 31 December 2016 £’000 17,851

Charity Growing in Faith Fund

15,149

8,035

(3,034)

–

(2,299)

840

–

(840)

–

1,139

(235)

117

(11)

1,028

457

–

(3)

491

–

(2)

109

Trinity Fund

229

–

(180)

Wellesley Colley Fund

241

–

(2)

263

Carroll Fund Masses Funds Poor Fund Ecclesiastical Education Fund

Harrow Education Fund

132

–

133

New School Building Fund

797

–

(853)

–

5,045

(5,045)

–

235

417

(5)

–

(16)

631

St. Richard Reynolds Archbishop’s Fund SPEC Fund

1,029

–

(1,029)

–

251

261

(208)

–

385 786

St Joseph’s Pastoral Centre Bakhita House

—

520

(360)

–

626

131

–

(1)

142

1,142

(23)

110

(9)

1,235

144

(40)

(1)

117

2,201

(78)

217

225

2,642 127

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

118

(9)

–

Other restricted funds

727

500

(932)

370

708

25,053

14,929

(9,969)

647

(3,944)

26,716

Charity total Sick and Retired Priests Fund Group total

9,170

672

(631)

577

(43)

9,745

34,223

15,601

(10,600)

1,224

(3,987)

36,461

Page 72

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Restricted funds (continued) •B akhita House supports the work of Bakhita House.

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

•P roperty Repairs Fund is available for repairs to diocesan properties.

•G rowing in Faith 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, be that in formation, during service in parishes or in retirement; and to maintain the tradition of outreach to those in need.

•P ost-ordination Studies Fund supports priests in further studies. •M issions Fund supports the work carried out by missions. •S t John Southworth 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.

•C arroll Fund is for charitable purposes within the United Kingdom. During the year the fund’s assets were transferred to other Charity funds with similar or related purposes and it was closed.

•F ilipino Chaplaincy Fund supports the work of the Filipino Chaplaincy.

•M asses Funds represent monies held for Masses. •P oor Fund is for the relief of poverty within the diocese.

• Other restricted funds are for specific charitable purposes of the diocese.

• Ecclesiastical Education Fund is for housing costs for priests.

•S ick and Retired Priests Fund represents the net assets of the Charity’s subsidiary charity (see note 23).

• Trinity Fund is for major projects within parishes.

Except where they have been explicitly mentioned above, transfers from curial restricted funds principally relate to Growing in Faith grants awarded to parishes and to Caritas.

• Wellesley Colley Fund is for general charitable purposes of the diocese and for the relief of poverty. • Harrow Education Fund is for school and catechetical activities in the Harrow Deanery.

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

• New School Building Fund is for school building projects in the diocese. During the year the fund’s assets were put towards the cost of the construction work at St. Richard Reynolds school, Twickenham. • St Richard Reynolds represents government grants received in respect of the construction of St. Richard Reynolds school, Twickenham. During the year the grant received was put towards the cost of the construction work. • Archbishop’s Fund represents a legacy which is for projects as approved by the Archbishop. • SPEC Fund represents monies received in respect of the SPEC Projects at All Saints Pastoral Centre and SPECEast in Poplar. During the year the fund’s assets were put towards the cost of the building and renovation work at the new SPEC retreat centre, at Waxwell Farm, Pinner. • St Joseph’s Pastoral Centre is for a variety of specific projects agreed with individual donors.

Page 73

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

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 Other designated funds

Utilised/ released £’000 (1,186)

At 31 December 2016 £’000 –

(2)

610

(1,188)

610

At 1 January 2016 £’000 1,186

New designations £’000 –

589 1,775

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

Tangible fixed assets fund 2016 £’000 17,816

Group and Charity At 1 January

1,472

Net movement in the year

19,288

At 31 December

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

Programme related investment fund

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

Group and Charity

At 1 January 2016 £’000

Movement £’000

At 31 December 2016 £’000

2,716

(2,716)

–

193

(193)

–

8,666

2,909

5,757

8,666

Voluntary aided schools: St Richard Reynolds St Anne’s Independent school: The Friary

Page 74

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Analysis of net assets between funds Parochial funds

Curial funds Unrestricted funds £’000

Group

Restricted funds £’000

Total funds £’000

Restricted funds £’000

2016 Total £’000

Fund balances at 31 December 2016 are represented by: Tangible fixed assets

19,288

19,371

87,684

107,055

Investments

19,786

14,545

34,331

39,989

74,320

Programme related investments Net current assets Non-current liabilities

8,666

–

8,666

–

8,666

117

21,833

21,950

28,464

50,414

(8,250)

–

(8,250)

–

(8,250)

Total net assets excluding pension liability

39,607

36,461

76,068

156,137

232,205

Pension liability

(2,803)

—

(2,803)

—

(2,803)

Total net assets

36,804

36,461

73,265

156,137

229,402

Total unrestricted funds £’000

Total restricted funds £’000

2016 Total £’000

Charity Fund balances at 31 December 2016 are represented by: Tangible fixed assets

19,288

87,626

106,914

Investments

31,867

39,963

71,830

8,666

–

8,666

(11,964)

48,731

36,767

Programme related investments Net current (liabilities) assets Non-current liabilities

(8,250)

–

(8,250)

Total net assets excluding pension liability

39,607

176,320

215,927

Pension liability

(2,803)

–

(2,803)

Total net assets

36,804

176,320

213,124

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

Page 75

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

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 costs.

The Charity acted as an agent for governors on school and academy building projects as summarised below:

Number of projects

2016 209

2015 209

Total amount spent

2016 £’000 29,529

2015 £’000 30,756

(23,870)

(29,580)

5,659

1,176

837

2,587

2,361

1,936

Less: grants received Net governors’ liability Amounts owing on contracts at 31 December 2016 (note 14) Amounts recoverable from Department for Education, Local Education Authorities and contract advances (note 13)

Connected charities and related party transactions

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

Charity Name

Charity Registration Number

Objectives

Hare Street House

247200

The provision of a house for the Archbishop

Norfolk Fund Charity

241675

Assisting young, poor Catholics

Westminster Ecclesiastical Education Fund

312528

The training of students for the priesthood

Westminster Cathedral Choir School

1063761

The training of children in church choral music

Hare Street House and Westminster Ecclesiastical Education Fund pay a management fee to Westminster Roman Catholic Diocesan Trust based on the market value of their investment holdings in the Mutual Investment Fund (note 12) to cover the cost of administrative services provided by the Charity. During the year, the Charity awarded grants of £2.5 million (2015 - £nil) to Westminster Ecclesiastical Education Fund and received income from the Westminster Cathedral Choir School related to the Friary of £147,000 (2015 – £nil). No amounts were outstanding as at 31 December 2016.

Page 76

Diocese of Westminster Annual Report & Accounts 2016

Notes to the accounts – 31 December 2016

Financial activities of charitable subsidiaries

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

• Diocese of Westminster Sick and Retired Priests Fund (Charity Registration No 278136) – a charity providing assistance to sick, elderly and retired clergy. A summary of the statement of financial activities and a statement of the net assets at 31 December 2016 of each of the charities is given below. Audited accounts of each charity will be filed with the Charity Commission.

• The Moorfields Charity (Charity Registration No 247198) - a charity providing assistance to the 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.

Diocese of Westminster Sick and Retired Priests Fund £’000 760

Income

The Westminster Cathedral Moorfields Trust Charity £’000 £’000 163 754

Total 2016 £’000 1,677

Total 2015 £’000 2,232

(762)

(62)

(2,783)

(3,607)

(1,467)

Net gains on investments

577

239

486

1,302

126

Net income (expenditure) and net movement in funds

575

340

(1,543)

(628)

891

9,745

2,829

3,700

16,274

16,902

Expenditure

Net assets

Contingent liability

During 2014, the Charity agreed to act as guarantor to HSBC Bank plc to secure all liabilities in respect of 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 commencing two years after the initial drawdown. Interest on the loan is charged at 1.5% above Bank Rate. St Etheldreda Trust is a charitable trust which owns both St Etheldreda’s Church and the adjoining presbytery which serve the Parish of St Etheldreda’s within the Roman Catholic Diocese of Westminster.

Page 77

Diocese of Westminster Annual Report & Accounts 2016

Diocesan Committees â&#x20AC;&#x201C; 31 December 2016

Audit and Risk Committee

Miss L Ferrar Rt Rev J Sherrington Mr K Ingram

Caritas Advisory Board

Rt Rev P McAleenan Rev M Woodruff Mr D Belloso Mr P Camoletto Mrs S Garibaldi Mrs S Macken Mr M McAteer Mr A Ndoca

Education Commission

Rt Rev J Wilson Rev M Dunne Mr J Asgian Mrs L Barton Mr P Camoletto Mr E Conway Mrs K Griffin Mrs J Jackson Mr M Rainsford Mrs P Sing OBE

Finance Board

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

Human Resources Committee

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

Investment Committee

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

Property Committee

Rt Rev J Sherrington Mr R Costelloe Mr C Shepherd Mr E Craston Mr M Collins Mr P Camoletto Members at time of printing.

Page 78

2016 Annual Report & Accounts Diocese of Westminster

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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:

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Annual Report & Accounts 2016