ANNUAL REPORT
STATUTORY SUPPLEMENT AND AUDITED ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2016
The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester
Annual Report Statutory Supplement and Audited Accounts 2012015555////11116666 Contents 111 Aims and Objectives ...... 3 222 Chapter Reports ...... 4 2.1 The Dean ...... 4 2.2 The Receiver General ...... 5 2.3 Worship ...... 6 2.4 Education and Spirituality ...... 7 2.5 Canon Principal ...... 8 2.6 Lay Clerks ...... 8 333 Legal and administrative information ...... 10 3.1 Legal name of the Cathedral ...... 10 3.2 Chapter Office ...... 10 3.3 Chapter ...... 10 3.4 Officers of the Foundation ...... 10 3.5 Council ...... 10 3.6 College of Canons ...... 11 3.7 Other key appointments ...... 12 3.8 Finance and Investment Advisory Committee ...... 12 3.9 Fabric Advisory Committee ...... 12 3.10 Winchester Cathedral Enterprises Ltd ...... 12 3.11 Auditors ...... 13 3.12 Bankers and other professional advisers ...... 13 3.13 Volunteer Section Heads ...... 14 444 Structure, governance and management ...... 14 4.1 Governing Statute ...... 14 4.2 Relationship with the Diocese of Winchester ...... 14 4.3 Organisational structure – the corporate body ...... 15 4.4 Organisational structure – other key committees and groups ...... 15 4.5 Other organisations associated with the work of the Cathedral ...... 15 4.6 Chapter appointments and training ...... 16 4.7 Chapter’s financial responsibilities ...... 16 4.8 Clergy and senior staff changes ...... 16 4.9 Investment powers...... 16 4.10 Public Benefit ...... 17 4.11 Risk...... 17 555 Financial Review ...... 17 5.1 Reserves Policy ...... 17 5.2 Investment Policy ...... 17 5.3 Investment performance ...... 18 5.4 Cathedral maintenance plan ...... 19 5.5 Five-year trends ...... 19 5.6 Commentary on the 2014/15 results ...... 19 666 Plans for future periods ...... 21 777 Audited Accounts ...... 22
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111 Aims and ObjeObjecccctitititivevevevessss
Winchester Cathedral is the seat of the Bishop of Winchester, the Rt Revd Timothy Dakin, and a centre of worship and mission for the Diocese which includes Hampshire, East Dorset and the Channel Islands.
Vision Our Vision is to discover and live out the beauty of holiness.
Mission Winchester Cathedral as dedicated to the Holy Trinity, seeks in its life to reflect the dynamic love of God revealed in Christ, through being both a servant of others in their journey of faith, and of the world in its search for meaning and inspiration, reconciliation and wholeness.
Purpose To be a community of worship, witness and welcome with Benedictine priorities.
To witness beyond the life of the Cathedral to the universal identity of the Church.
To be a sign of the Kingdom to which God is calling through commitment to justice, the integrity of creation and healing of individuals and communities.
To release and enable within a caring, learning environment, the gifts of all members of the Cathedral community (lay and ordained, staff, volunteers and members of the worshipping community).
To work for collaboration, co-operation and effective communication at all levels of Cathedral life and beyond.
To conserve and develop the beauty of the buildings, contents and estates within our care.
To thrive and not just survive.
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222 CCChapterChapter Reports
2.12.12.1 The Dean
The theme for this year in the life of Winchester Cathedral we have identified as Celebrating Service. That is, the Cathedral’s service to the wider community, and the service of staff, volunteers and worshippers in enabling Cathedral life. In many ways it has been a year in which the pulse of normality – whatever that is in the life of a Cathedral – has been evident. The Cathedral has continued to be something of a carrier of memory and a place where the shape of the year receives definition and celebration for the wider community. It has been a year of consolidation and permissions as the great £20.5m development project makes progress and, with it, the associated Appeal. The usual round of daily and special services has been faithfully maintained along with some spectacular moments. The Choral Foundation has continued to play an exemplary part in that achievement.
The Cathedral has marked further significant commemorations of the First World War, including Gallipoli, as well as the bi-centenary of Waterloo and the 70 th Anniversary of VE Day. Other ‘markers’ celebrated in the Cathedral have been the Magna Carta 800, the University of Winchester 175 th Anniversary, and the 70 th Anniversary of the work of Christian Aid for which we held a regional service with the former Archbishop of Canterbury, the Right Reverend Rowan Williams, as the preacher. The Flower Festival in June entitled Cascades was a spectacular achievement. Opened by Hugh Bonneville, it enabled the Cathedral to be At Home to the community. A particular marker for me has been being President of the New Forest Show this year. The three days of the Show in July were immensely enjoyable and stimulating. That appointment was more than personal, it recognized something of the involvement of the Cathedral in the community and the particular partnership which has enabled the County Harvest weekend in October to thrive.
The HLF Project and associated other works steadily progressed in all their manifold complexity. In the autumn some scaffolding even began to come down as the stonemasons completed an immaculate task on conserving, cleaning and pointing up the stunning Romanesque West face of the South Transept. Permissions are now in place for all the works including the installation of a lift to serve the three levels of galleries in the South Transept. A grant from the World War I Fund, set up by Government to support Cathedrals, has enabled us to undertake the rewiring and relighting of the Quire, Retroquire and Transepts which are outside of the HLF Award. The Appeal began the year with £2.4m still to find and ended with £1.5m yet outstanding.
The Community AGM took a different form this year when we combined the two meetings which we normally hold, with the regular Community Day which is held on a Sunday in September. It enabled us to have a single business meeting in the morning and take up particular aspects more deeply in the afternoon. The occasion was well attended and hosted at Pilgrims’ School. The venue reminded us of the significance of Pilgrims’ as our Cathedral School, which this year received ‘excellent’ in every aspect of its ISI inspection. Two topics were identified for the afternoon of Community Day. The first focused on the Cathedral’s developing work with young families in connection with worship, which received an impetus in January when we celebrated with ‘Bouncy Cathedral’. The other topic related to the conservation work of the HLF Project in the Presbytery roof.
Our relationship with our twin communities continues to be strong. In particular we received a visit from the Dean and representatives of Namirembe Cathedral in July and then responded with an official return visit to celebrate the Centenary of their Cathedral in October. Lorna and I were in Fleury for their Ecumenical Vespers in August and the Abbot took us by surprise in announcing the Abbey were going to sponsor the restoration of a page of the Winchester Bible.
We welcomed Canon Mark Collinson as Residentiary Canon, Chapter member and Canon Principal of the Diocesan School of Mission, on Sunday September 19. It is good to welcome him, Sue and the family to Cathedral life. We said farewell to Carlton Bath, Clerk of Works, and Linda Bath, at the end
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of August. Carlton had given exceptional service to the Cathedral over 25 years. If anything needed fixing in the Close he could be counted on as ‘the fourth emergency service’. Bob Forrester also retired from his position as Assistant Receiver General. He, too, had given long service to the Cathedral in many different ways ranging from brokering the Christmas Market to trouble-shooting IT.
Maintaining the life of a great Cathedral is a team effort and involves tenacity and a willingness to go the second mile. It is said that duty carries us along on wheels, but joy takes wings. It is those wings which are markers of lives committed to Christ and evident in the service that we celebrate.
The Very Revd James Atwell, Dean of Winchester
2.22.22.2 The Receiver General
I am delighted to report, for the sixth successive year, that we have exceeded our budgetary targets and have recorded a financial surplus of £24k for the financial year 2015/2016. This positive outcome has been particularly satisfying as we started the year facing a £69k deficit and our investment portfolio has been subject to the continuing financial market turbulence. Our emphasis on good financial stewardship and responsible governance, however, has allowed us to prosper in what is still a most challenging financial environment. Maintenance of financial discipline remains the key to our continuing prosperity.
It is not possible to think of sound financial management without immediately thinking of Sir James Butler, the retiring Chairman of our Finance and Investment Advisory Committee, a subcommittee of Chapter. Sir James was a widely acclaimed towering figure in the financial services industry with an international reputation. How fortunate we were to have the benefits of his advice and guidance over so many years. I personally shall miss his wise counsel and incisive intellect. Thank you Sir James from Winchester Cathedral; you will be sorely missed. Sir James has been succeeded as Chairman of FIAC by a very able Martin Reid who is well known and highly respected within our community. Welcome Martin.
I can report that project work on Kings & Scribes and other related projects proceeded apace throughout the year and we are on programme to complete the capital works late 2018. The Capital Fundraising Programme, ably supported by Winchester Cathedral Trust and the Friends has, at the end of 2015/16 a remaining target of £1.5m. With a final drive and continued hard work I am hopeful of achieving our target next year. Details of works and status are contained in our “Illumination” series of progress reports.
Our focus this year has been on ‘celebrating service’. One of the great joys of cathedral life is the many and varied parts we all play and the fulfilment we can all enjoy as we contribute to the mission and ministry of our Cathedral. To this end we have this year had a strategic focus on volunteering and new learning initiatives which are fundamental to optimising the outcomes of all of the many tasks we undertake. We have introduced a Volunteer Policy, Induction and Volunteer Handbook which has successfully enabled our many volunteers to deploy their talents more effectively and has helped them to see their own efforts in relation to the contribution of others.
While we can celebrate the service provided to the Cathedral we should also celebrate the major service provided in so many ways by the Cathedral to the wider community. A good example of our promotion of Christian values would be Cloisters, our community based charity shop, which trades in the heart of the City, taking in and selling on pre-owned clothes and goods and at the same time offering a Benedictine welcome to all who visit us. Likewise, our ever-popular Deanery Bookstall generates sufficient funds to support the education fees for up to three choristers each year. Our Cascades Flower Festival was a resounding success reaching out to a very large audience.
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Our bespoke apprenticeship programme continues to flourish and forms part of our diversity and inclusion strategy. We offer unrivalled opportunities to young people to ‘learn on the job’ within a supportive environment that encourages our apprentices to optimise their talents leading to creation of employment opportunities.
As I look back at our achievements over the year, I am reminded that it is through our service to others that we can reap the rewards that enable our Cathedral to prosper. My thanks to everyone for their many and varied contributions that enable us to ‘thrive, not just survive’.
Canon Annabelle Boyes, Receiver General and Canon Treasurer
2.32.32.3 Worship
This year was an amazing and memorable one for the music and liturgy department. We said goodbye to Ed Saddington, who is now pursuing a career as a soloist, Tom Marks, our part-time virger who moved to be full-time at Salisbury, and Neil Howe who has become the Head Verger at Romsey Abbey. We are so pleased that Winchester can be a place where people’s talent is nurtured and people can move onwards in their careers. In their place we welcomed Jamie Franklin as a part-time virger, and Adam Wilson, who comes to Winchester from Lancing College. Both of these have settled well into the team and we are very pleased to have them with us.
January marked the start of the Family Welcome Team at the 11am Eucharist. The team helps parents with young children and also looks after Children’s Corner, a safe place with toys where parents of young children can go if their children need a break but they still see and hear the service and feel part of the Cathedral. We also started preparations towards beginning a Sunday School, known as Children’s Church. This launched in January with the first ever Bouncy Cathedral event in the Cathedral which included giant games and a bouncy castle, drumming, puppets, prayer stations in the quire and a giant video version of the Lord’s Prayer. Now Children’s Church has become a refreshingly normal part of cathedral life at the Eucharist, and we have seen children from there become part of the serving team, acting as boat boys and girls.
The liturgical changes this year have been subtle, rather than dramatic ones. We increased the number of Family Carol Services from one to two and were delighted to discover that the Cathedral was almost full for both of them. We also redesigned the Candlemas service, moving from the crib and laying down our candles at the foot of the cross, as the choir movingly sang the Holst Nunc Dimittis .
One of the reasons why this year has been so memorable has been the choir trip to Rome and Florence in April, when Andrew Lumsden and I were introduced to Pope Francis as our choir joined the Sistine Chapel Choir for a Vigil of Mercy, attracting thousands in St Peter’s Square. The trip to Italy was partially sponsored by our partners in mission at Santa Maria Del Fiore in Florence and the choir very much appreciated their hospitality.
There have also been many special services in our cathedral this year, ranging from the intimate and atmospheric multimedia Stations of the Cross to the glorious ceremony of the Queen’s ninetieth birthday service. Each service has been special and moving in its own way, and yet each has appealed to different people and cultures.
However there is no way that the worship of the Cathedral could continue without the large numbers of volunteers. We have been particularly reliant on our honorary virgers this year, who have seen us through the periods when we were short-staffed. The bellringers have been faithfully calling us to prayer and celebration; the sidesmen have welcomed thousands of worshippers; the Chamber and Nave Choirs have enabled us to experience great music during choir holidays; the wardrobe team
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have kept the choir looking great; our readers, our servers, our intercessors and children’s helpers were also invaluable. I would also like to particularly thank Daren, Andrew, Sue, Richard and the organists who have often worked long hours behind the scenes to help make the worship this year so very special.
Canon Sue Wallace, Precentor and Sacrist
2.42.42.4 Education and Spirituality
Rather than giving a broad survey of the many good things happening under ‘Education and Spirituality’, I’d like to highlight just one event that took place last November, the pilot for a Science Festival. It highlights much of what we are attempting to do through our continuing Kings & Scribes campaign.
One of the main aims of the campaign is to widen the circle of interest of the Cathedral. Many already come to us with a desire to explore faith, history and architecture, but we offer less to those who come with an interest in the sciences. The aim of our science pilot, then, developed and led by our Learning Officer Emma Hart, was to see whether we could find and then work with expert scientists to run workshops and to see how we could organize a bigger event in future. Over two days 132 pupils from four different primary schools took part.
Another aim of the event was to draw in volunteers. Timetabling clashes prevented trainee teachers from the University of Winchester from leading workshops, but Emma found others through the STEM (Science, Technology, Engineering and Maths) network: the Institute of Engineers ran a tower building workshop; the University of Southampton’s Institute of Sound and Vibration Research ran a workshop with the Cathedral organists; a friendly geologist led a session on rocks and materials and our own Director of Learning led a session on flooding. Nine trainee teachers did in the end help to run the days, leading to an impressive total of 185 hours of volunteer time.
Another aim was to deepen learning. We were all delighted, therefore, to hear the feedback from the pupils who participated. They particularly enjoyed working with the experts and discovering there are jobs that require these skills in the real world. This is important because research suggests that children make up their mind about whether science is ‘for them’ by the age of 10.
Here are some of their comments: “I learned a lot about different jobs. We had a civil engineer doing tower building and a scientist doing geology. It was good to learn about and do their job!” Pupil, Year 6, Western Primary. “I loved the sound workshop because we got to test how well humans hear and I saw the sound waves, which was fun.” Pupil, Year 5, Red Barn Primary.
We received lots of enthusiastic feedback, which showed how much children liked working hands-on, with real scientific equipment and as a team. They also wanted to have a workshop about pulleys and levers and have plenty of time to do everything.
Though I have focused on the volunteers who made the Science Festival pilot event such a success, others’ service should not be overlooked: those who catalogue and dust books; those in the pastoral and hospitality groups who serve at our Tea at Three for older people - even the scones are now baked by a volunteer; those who help with tours and daily workshops for children; and those who run Children’s Church, both ordained and lay.
Canon Dr Roland Riem, Vice-Dean and Canon Chancellor
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2.52.52.5 Canon Principal
In April 2015 I was delighted to accept the bishop’s invitation to become the first Canon Principal of Winchester Cathedral. My family and I moved to Twyford from Amsterdam where I had ministered for fourteen years as Chaplain of four Anglican churches and as Area Dean of the Netherlands. I was installed on 19 September 2015.
This new role bridges the ministry of the new diocesan School of Mission with the Cathedral’s existing mission and ministry. Only 20% of my time is spent directly involved in the Cathedral’s worship, governance and discipleship; the rest of the time I lead a team of ten people based in Wolvesey who serve the parishes and chaplains across the diocese. This past year has been focused on getting to know people and understanding how things work.
The School of Mission supports parishes in their children and youth ministry, growing disciples of Christ, facilitating the Mission Action Planning process, supporting the Resource Room in the Cathedral Learning Centre, discerning who is being called for ministry and training both lay and ordained. All of the members of the Cathedral community are naturally welcome to draw on these resources also (as some do).
In addition we have further plans developing: a new Bishop’s Commission for Mission will be launched, a new option for training ordinands will start in autumn 2017 and a Rule of Life will link the whole diocese with a contemporary version of our Benedictine heritage. All members of the Cathedral community are welcome to investigate these opportunities.
Canon Mark Collinson, Canon Principal
2.62.62.6 Lay Canons
The three Lay Canons have been intent on forging fruitful relationships in the life of the Cathedral this past year.
George Medd was part of a group visiting mission partners in the Ugandan city of Namirembe in East Africa in the autumn. Building on the hard work by the Partnership-in-Mission team and, following a very successful visit by the Dean of Namirembe Cathedral with two colleagues and their wives to Winchester in July, Vice-Dean, the Canon Roly Riem, George, and Anne Peebles-Brown spent a happy ten days in Namirembe during November. They were honoured guests, participating in the centenary celebrations of the laying of the foundation stone of the building, sharing in worship and fellowship, as well as visiting some amazing sites in and around Kampala, which created lasting memories.
In September, Debbie Thrower, Chair of the Cathedral’s ‘Mother Church Action and Advisory Group’, organised (with the Diocese and fellow group members) a communications workshop entitled ‘Want to get Noticed?’ It recognised the importance of those men and women who, week-in week-out, edit parish magazines and manage church and community websites.
More than a hundred parish communicators from all over the region --- from Christchurch to Basingstoke, Andover to Southampton, and representing smaller rural communities too --- attended the event held in the new Wessex Learning Centre, with its stunning view of the Cathedral.
Professor Lord Raymond Plant brought news of debates in the House of Lords pertinent to Chapter’s deliberations. Most high-profile among these were safeguarding issues. Chapter members updated their safeguarding training in 2016.
In the New Year, Debbie was among many who found the personal testimony both moving and memorable of the Archbishop of Myanmar and Bishop of Yangon, Stephen Than Myint Oo. He recounted his time imprisoned in solitary confinement while attending a Vocations Day in the Annual Report Statutory Supplement and Audited Accounts - Page 8
Diocese on his visit to Winchester in January. The following day, Archbishop Stephen preached in the cathedral on the role of lay people in keeping mission alive in Myanmar.
George maintains his support for the continual updating of the cathedral’s technology, such as the implementation of the new system recording details of all the Cathedral’s artefacts, museum pieces and ancient books.
The new Tea at Three pastoral initiative to welcome older people, and those on their own, to a monthly cream tea in the Cathedral Close is building momentum thanks to our hospitality team and Visitor Chaplains, with Debbie and others contributing short talks on cathedral life, poetry, and other spiritual themes, to give food for the soul as well as the body.
Above all, each Lay Canon counts it a great privilege to be part of the rhythm of prayer and praise that characterises worship and the celebration of holiness at the heart of the cathedral. Services and events are reaching out to more and more people every year, demonstrating the extent to which the cathedral is both a cultural and spiritual asset… for everyone.
Canon Professor Lord Plant Canon George Medd Canon Debbie Thrower Lay Canons & members of Chapter
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333 LLLegalLegal and administrative information
3.13.13.1 Legal name of the Cathedral The legal name of the Cathedral is: The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester Name commonly used: Winchester Cathedral
3.23.23.2 Chapter Office The Cathedral Office 9 The Close Winchester Hampshire SO23 9LS
Telephone: 01962 857200 E-mail: [email protected] Website: www.winchester-cathedral.org.uk
3.33.33.3 Chapter Members of Chapter during the year to 31 March 2016 were as follows:
The Dean The Very Revd James Atwell Vice Dean & Canon Chancellor The Revd Canon Dr Roland Riem Receiver General & Canon Treasurer Mrs Annabelle Boyes Canon Principal The Revd Canon Mark Collinson (from Sept 15) Canon Precentor & Sacrist The Revd Canon Sue Wallace Lay Canon The Lord Plant of Highfield Lay Canon Mr George Medd Lay Canon Ms Debbie Thrower
3.43.43.4 Officers of the Foundation High Steward The Duke Of Wellington Counsellor His Honour Michael Brodrick Clerk at Law Julian Hartwell
3.53.53.5 Council Members of the Cathedral Council during the year to 31 March 2016 were as follows:
Miss Jean Ritchie QC (Chair) (Bishop’s appointment) The Very Revd James Atwell (ex officio) Mrs Annabelle Boyes (Chapter appointment) Brigadier Alastair Bruce of Crionaich OBE ADL DL (Bishop’s appointment) Mr David Evans (Bishop’s appointment) Mr Alan Lovell DL (Bishop’s appointment) Lady Louisa Portal MBE DL (Bishop’s appointment) Surgeon Vice Admiral Anthony Revell CB (elected by Cathedral community) The Revd Canon Dr Roland Riem (Chapter appointment) Mr Martin Rudd (Bishop’s appointment) The Revd Canon Jo Stoker (appointed by College of Canons) The Revd Canon Dr Ian Tomlinson (appointed by College of Canons) Mr Paul Wing (elected by Cathedral community) The Revd Dr Andrew Wood (Bishop’s appointment)
Visitor: The Rt Revd Timothy Dakin, Lord Bishop of Winchester
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3.63.63.6 College of Canons Visitor Lord Bishop of Winchester, The Rt Revd Timothy Dakin
The Chapter of Winchester The Dean of Winchester , The Very Revd James Atwell Vice Dean & Canon Chancellor, The Revd Canon Dr Roly Riem Receiver General & Canon Treasurer, Mrs Annabelle Boyes Canon Precentor, The Revd Canon Sue Wallace Canon Principal, The Revd Canon Mark Collinson (from Sept 15) Prof the Rt Hon Lord Plant of Highfield Mr George Medd Ms Debbie Thrower
Bishop’s Staff The Bishop of Basingstoke, The Rt Revd David Williams The Bishop of Southampton, The Rt Revd Jonathan Frost The Dean of Guernsey, The Very Revd Timothy Reed Barker The Dean of Jersey, The Very Revd Bob Key The Archdeacon of Winchester, The Venerable Richard Brand The Archdeacon of Bournemouth, The Venerable Dr Peter Rouch Archdeacon for Mission, The Revd Canon Dr Paul Moore Chief Executive & Diocesan Secretary Lay Canon Andrew Robinson
Canon Theologian The Revd Canon Dr Judith Maltby (2011)
Honorary Canons The Revd Canon Ian Tomlinson (2004) The Revd Canon Clive Hawkins (2005) The Revd Canon Jo Stoker (2008) The Revd Canon John Harkin (2009) The Revd Canon Gary Philbrick (2009) The Revd Canon Geoff Houghton (2011) The Revd Canon Dr Brian Rees (2011) The Revd Canon Dr Andrew Goddard (2012) The Revd Canon Stephen Pittis (2013) The Revd Canon Peter Seal (2013) The Revd Canon Karen Mackinnon (2014) The Revd Canon Malcolm Jones (2014) The Revd Canon Phil Collins (2014) Emeritus 30 September 2016 The Revd Canon Tim Sledge (2014) The Rt Revd Canon Abbot Giles Hill OSB, Abbot of Alton (2015) The Revd Canon Howard Wright (2016) The Revd Canon Helen Griffiss (2016) The Revd Canon Andy McPherson (2016) The Revd Canon Peter Gilks (2016) The Revd Canon Dr Gregory Clifton Smith (2016)
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Ecumenical Canons The Abbot of Fleury (2011) The Revd Canon Paul Townsend (2011) The Revd Canon Dr Howard Mellor (2011) The Revd Canon Dr Andrew Wood (2016) The Revd Canon Billy Kennedy (2016)
3.73.73.7 Other key appointments
Receiver General & Canon Treasurer Mrs Annabelle Boyes Cdir FIoD FLCM
Cathedral Architect Mr Nick Cox MA (Cantab) Dip Arch RIBA AABC Nick Cox Architects, 77 Heyford Park Upper Heyford OX25 5HD
Archaeologist Dr John Crook MA FSA DPhil 52 Canon Street Winchester SO23 9JW
Director of Music Mr Andrew Lumsden MA FRCO
3.83.83.8 Finance and Investment Advisory Committee
Mr Martin Reid (Chair from Nov 2015) Sir James Butler CBE DL (Chair to Nov 2015) The Very Revd James Atwell – The Dean (Chapter) The Revd Canon Dr Roland Riem – Vice Dean & Canon Chancellor (Chapter) Mrs Annabelle Boyes - Receiver General & Canon Treasurer (Chapter) Mr Edmund Byers The Lord Poole (from July 2015) Mr John Pringle Mr Christiaan Beech - Head of Finance (in attendance)
3.93.93.9 Fabric Advisory Committee
Professor Martin Biddle CBE (Chair) Ms Zuleika Dobson Mr Anthony Feltham-King Mr Christopher Gordon Mr John Spokes QC Professor Michael Wheeler Professor Barbara Yorke The Revd Jeremy Davies The Very Revd James Atwell - The Dean (in attendance) Mr Ian Bartlett, Grounds & Estates Manager (in attendance) Mr Nick Cox, Cathedral Architect (in attendance) Dr John Crook, Cathedral Archaeologist (in attendance) Mrs Annabelle Boyes – Receiver General (Secretary)
3.103.103.10 Winchester Cathedral Enterprises Ltd
Mr J onathan Durrant (Director and Chair) Mrs A nnabelle Boyes (Managing Director) The Revd Canon Dr Roland Riem (Director)
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Mr Damien Carp anini (Director) Mr R upert Ellwood (Director) Mr Stan Kaufman (Director) (to March 2016) Mr Christiaan Beech (Company Secretary)
3.113.113.11 Auditors
Grant Thornton UK LLP 1 Dorset Street Southampton SO15 2DP
3.13.13.123.1 222 Bankers and other professional advisers
Bankers National Westminster Bank plc High Street Winchester SO23 9AW
Clerk at Law Mr Julian Hartwell LLB Martyrwell, Cheriton Alresford, Nr Winchester SO24 O2A
Occupational Health Adviser Dr S Chapman Swift Medical Services, St Clements Partnership Tanner Street, Winchester SO23 8AP
Property Agents Carter Jonas 9a Jewry Street Winchester SO23 8RZ
Quantity Surveyors David Bailey Associates 11 Clearmount Road Weymouth Dorset DT4 9LD
Solicitors Godwins 12 St Thomas Street Winchester SO23 9HF
Media Advisor Chilton Media Law 8 West Street London WC2H 9NG
Stockbrokers & Investment Managers Cazenove Capital Management Ltd 12 Moorgate London EC2R 6DA
Investment Managers CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ
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333.13.1.1.13333 Volunteer Section Heads Other Section HeadHeadssss
Mrs Gillian Allen, Litter Pickers Sue Armstrong, Sunday morning Mrs Lorna Atwell, Deanery Books coffee team Mrs Margaret Braddock, Holy Dusters / Brass Band Jo Bartholomew, Curator & librarian Mr Nick Bucknall, Bell Ringers Cheryl Bryan, Children’s education Mrs Mary Calle, Readings Mel Donaldson. Cloisters Mrs Frances Carroll, Dean Garnier Gardeners Daren Gibb, Virgers Mrs Audrey Constantine, Intercessions Susie Gilmour, Shop Mrs Sheena Crawford-Moody, Events Stewards Emma Sharpe, Gardeners Mrs Anna Diamond, Broderers Sarah Williams, St. Christopher’s Mrs Rosemary Durward, Children’s Church Mr Julian English, South Transept Co-ordinator Mrs Brenda Fletcher, Information Desk Mrs Andrea Hall, Wardrobe Team Mrs Rosemary Howland, Concert Programme Sellers Mr Phillip Johnson, Calligraphers Mr Peter Matthews, Cash Counters Mrs Helen McGarry, Flower Arrangers Mr Stephen O’Connell, Guides Mr Brian Scott, Welcoming Stewards Ms Natalie Shaw, Hospitality Team Mr Jeff Steer, Tower Tour Guides Miss Marion Steads, Proof Readers Mr John Weatherley, Servers Mr Paul Wing, Head Sidesman & lunchtime recitals Mrs Valerie Woodward, Visitors’ Chaplains 444 Structure, governance and management
4.14.14.1 Governing Statute The Cathedral is governed by the Cathedrals Measures 1999 and the Constitution and Statutes that came into effect on 19 April 2000 as amended on 17 February 2009, and on the 10 December 2014.
4.24.24.2 Relationship with the Diocese of Winchester The Diocesan Bishop is The Right Reverend Timothy Dakin, Lord Bishop of Winchester.
The Cathedral is the formal ‘seat’ of the Bishop of Winchester, and he is the official Visitor. After consultation with the Chapter and subject to any provision in the Statutes, he may officiate in the Cathedral and use it in his work of teaching and mission, for ordinations and synods and for other Diocesan occasions and purposes. The Bishop is a valued friend and advisor to the Cathedral, which in turn seeks to support the Bishop’s work of leading the Diocese in mission and ministry. Chapter members actively participate in the Mission and Ministry of the Diocese, Diocesan committees and working groups. The Dean serves on the Bishop’s Staff. The Bishop of Winchester is supported by two Suffragan Bishops – The Bishops of Basingstoke and Southampton.
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444.34.3.3.3 Organisational structure ––– the body corporate The members of Chapter, the Council, and the College of Canons form the corporate body of the Cathedral.
The Chapter of the Cathedral The Chapter consists of the Dean, two Residentiary Canons, the Receiver General & Canon Treasurer, Canon Principal and three Lay Canons, members recruited for their skills and expertise in specific areas of the Cathedral’s life. Chapter holds the executive role of the corporate body and is responsible for leadership, policy, strategy, vision, and also has fiduciary duties. Residentiary members of Chapter are responsible for different portfolios within the Cathedral’s life – mission and social responsibility, pastoral care and spiritual development, education and visits, liturgy and music and patronage. These departments are supported by a range of committees and teams. The Receiver General & Canon Treasurer has overall responsibility for cathedral support services and resources.
The Cathedral Council The Council is an advisory and consultative body, established to support the work of the Chapter and to ensure accountability to the wider community and Diocese. It provides a sounding board and guidance for Chapter as well as offering an informal ‘watchdog’ role to ensure that the Cathedral fulfils its legal responsibilities. It also has a formal role if any amendments to the Cathedral’s Constitution and Statutes should be proposed.
The College of Canons The College consists of senior clergy and lay members from across the Diocese, appointed by the Bishop, along with a number of ecumenical canons (representatives from other denominations). Its role is to ensure that the Cathedral is open to informed opinions, observations and comment from churches within and beyond the Diocese.
4.44.44.4 Organisational structure ––– other key committees and groups The Finance and Investment Advisory Committee This committee is a sub-committee of Chapter and is responsible for advising Chapter in connection with its responsibilities in the field of financial and investment management.
The Fabric Advisory Committee This committee is responsible for ensuring that any work to the fabric of the Cathedral is done with proper regard to due and legal process. It includes the Cathedral Architect, the consultant Archaeologist, and other experts in the conservation and repair of historic buildings.
The Cathedral Community Membership of the Cathedral Community is open to all those who apply for membership and are aged sixteen years or more, who worship at the Cathedral, or who work for or hold office linked to the Cathedral. The Community meets once a year for an open meeting. It has no statutory powers but allows for open discussion of any issue of interest within the life of the Cathedral. From this body, two members are elected to the Cathedral Council.
4.54.54.5 Other organisations associated with the work of thethe Cathedral The Friends of Winchester Cathedral The Friends of Winchester Cathedral is an independent network of supporters of the Cathedral. They continue to provide very substantial and welcome support both to the fabric of the Cathedral and to its environment, and in their generous support of the boys and girls who sing in the cathedral choirs.
Winchester Cathedral Trust Established in 1983, Winchester Cathedral Trust is an independent charity set up to receive money raised from appeals made on the Cathedral’s behalf and to make grants in accordance with the terms
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of the Trust Deed to support the development of the Cathedral. The Trustees are drawn from across the region.
Winchester Cathedral Enterprises Limited This limited company is a wholly-owned subsidiary of Chapter. It undertakes a range of commercial activities within and around the Cathedral and in the Visitors Centre. All taxable profits are covenanted to Chapter and details of its trading activities are summarised within the statement of consolidated financial activities and the notes to the accounts. The Directors (of whom are two Chapter members) are appointed by the Chapter.
The Friends of the Dean Garnier Garden The Friends of Dean Garnier Garden was established in 1994 to maintain the Garden, the fabric of which remains in the ownership of the Cathedral. The Dean Garnier Garden, formerly the Deanery Rose Garden, is available for the use of the community of Winchester and for all visitors to The Close.
Carl Klein Trust An independent charity, the Carl Klein Trust supports two dwellings dedicated for lay clerks and gives grants for the welfare of lay clerks. 4.64.64.6 Chapter appointments and training The Dean is appointed by the Crown. The two Residentiary Canons (Canon Precentor and Canon Chancellor, called Commissioners’ Canons), and the Canon Principle are appointed by the Bishop with the agreement of the Dean in consultation with the Chapter. The non-residentiary members of Chapter are appointed by the Bishop with the agreement of the Dean after consultation with the Chapter.
New members of Chapter are provided with key documents such as the Constitution & Statutes and links to the Cathedrals Measure 1999. Informal discussions are used to brief them on their role and to help them understand the different aspects of the Cathedral’s work. Where possible external training courses provided by the Association of English Cathedrals are used. 4.74.74.7 ChapterChapter’s ’s finanfinancialcial responsibilities Chapter is responsible under requirements laid down by the Church Commissioners under the powers given to them by Section 27 of the Cathedrals Measure 1999 for • preparing and publishing an annual report and audited accounts which give a true and fair view of the financial activities for each financial year and of the assets, liabilities and funds at the end of each financial year of the Cathedral and its connected entities • stating that they have complied in all material respects with the Accounting and Reporting Regulations for English Anglican Cathedrals prepared by the Cathedral Administrators and Finance Association (CAFA) specified by the Church Commissioners or describing which recommendations have not been complied with and giving reasons for the non compliance • selecting suitable accounting policies and then applying them consistently • making judgements and estimates that are reasonable and prudent • keeping proper accounting records from which the financial position of the Cathedral can be ascertained with reasonable accuracy at any time, and • safeguarding the assets of the Cathedral and taking reasonable steps for the prevention and detection of fraud and other irregularities. 4.84.84.8 Clergy and senior staff changes Mark Collinson, Canon Principal joined Chapter during September 2015. 4.94.94.9 Investment powers Under the Cathedrals Measure 1999 the Chapter may invest the Cathedral's funds in any of the following: land; funds administered for the Central Board of Finance of the Church of England by CCLA Investment Management Ltd; investments in which trustees may invest under the general Annual Report Statutory Supplement and Audited Accounts - Page 16
power of investment in the Trustee Act 2000; the improvement or development of property belonging to the Cathedral, except that endowment funds may not be used to improve or develop the Cathedral itself and its ancillary buildings.
4.104.104.10 Public Benefit Although it is not a reporting requirement of the Church Commissioners, nevertheless Chapter confirm that they have complied with section 4 of the Charities Act 2006 to have regard to the public benefit guidance published by the Charity Commission in determining the activities of the Cathedral. The Cathedral not only serves the community daily in its religious and charitable work, but is an active resource of national importance in the promotion of religion, music, education, history and architecture.
4.114.114.11 Risk A corporate risk register has been completed and accepted by Chapter. This identifies and measures the possible impact of perceived risks and sets out the actions taken to manage and mitigate them. Progress will be reviewed every year by Chapter. There is a departmental risk register. There is a Capital project register.
555 Financial RevReviewiewiewiew
5.15.15.1 Reserves Policy Reserves are needed both to maintain the level of the Cathedral’s current activities and to enable the completion of long-term projects.
Maintaining unrestricted reserves protects the Cathedral against a sudden deterioration in its financial results (e.g. a significant drop in visitor income). It also provides a buffer in the event of long-term planning or restructuring.
Chapter’s aim is to build up reserves to at least 6 months of ordinary activity to afford increased protection to the Cathedral’s operations and increased flexibility in their availability and use.
Where specific future funding needs are identified, Chapter has the discretion to set aside free funds for designated purposes, those funds being declared as Designated Funds.
5.25.25.2 Investment Policy The Dean & Chapter aim to keep a balanced portfolio of investments that is risk averse and appropriate to the purposes of the funds that are represented by them.
The investment objectives given to our principal fund managers, Cazenove Capital Management, are to protect the capital value of the funds, to provide an increasing income and to maximise the overall growth of the funds. This should be achieved by investing in a portfolio of Investment Funds. The selection of the Funds will be made to reflect the benchmarks established for asset classes.
A medium to low risk profile is taken on equities and performance is measured against a composite benchmark index constructed by Cazenove Capital Management based on the agreed proportion of the component elements of the portfolio.
Investments in property are to be either capable of efficient local management or in the form of managed property funds. Performance is measured against income yield on the CBF Property Fund, the property fund managed by CCLA Investment Management Ltd on behalf of the Central Board of Finance of the Church of England.
Chapter, in its stewardship of charitable funds, aims to achieve appropriate levels of investment return within an ethical framework. Its investments are chosen according to a policy of Socially Annual Report Statutory Supplement and Audited Accounts - Page 17
Responsible Investment (SRI). The Chapter’s SRI policy is based in turn on the social, environmental and ethical policies that are adopted by the Cathedral’s principal Investment Managers, Cazenove Capital Management, and for the smaller proportion of its portfolio, the policies operated by CCLA. Responsibility for the management of this policy rests with the Chapter, and instructions are given to the Cathedral’s investment managers to carry out stock transactions on a day to day basis.
5.35.35.3 Investment performance Property Investments The Dean and Chapter own property to house clergy and staff and to use for offices. Other property is held for investment purposes and is rented out on a commercial basis where possible to generate funds for the day-to-day operation of the ministry of the Cathedral. Properties were revalued at market value on 31 March 2014, with interim valuations by Chapter on the 31 March 2016. £000 Rental income 651 Professional services (5) Repairs (5) Net income 641
Yield on investment properties
Capital value investment property (£000s) 17,709 Net income yield 3.6% CBF Property Fund income yield 5.5%
The annual net income yield will vary year by year depending on the amount of capital works done in the year. Our relatively low yield reflects the fact that capital values in the Close are particularly high and also that for historical reasons, some properties do not generate market rents. It is Chapter policy through the Close Plan to address some of these issues. In addition, during 2015/16 rental income increased due to an small number of void letting periods. Despite these factors, the policy to increase property and rental opportunities has caused rental income to increase significantly over the last five years – from £591k in 2011/12 to £651k in 2015/16.
Other investments The performance of the Cathedral’s other investments is shown below:
Equity Fixed Other Total Gross income from other investments funds interest funds £000 £000 £000 £000
Cazenove funds 234 47 49 33 0
CCLA 13 - 32 45
247 47 81 375
Losses on revaluations/disposals (370) Management fees (31)
Total return on other investments (26)
Return on other investments £000
Market value of other investments 7, 363 Return (0.1 %) Composite index agreed with Cazenove 8.7 %
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UK investors faced an elevated degree of uncertainty during the year with two significant equity market sell offs caused by fears of a Chinese slowdown and a falling oil price. The investments fell by -1.3% compared to the benchmark return of -0.6%. The UK equity market fell by -3.9% and the UK gilt market rose by +3.3% in the same period. The portfolio has maintained a relatively high proportion of equities to maintain income generation in a low yielding investment landscape.
At 31 March 2016 our total investments excluding direct property holdings totalled £7.37m, of which 60% were held in listed equity funds, 11% in fixed interest, and 28% in other funds.
5.45.45.4 Cathedral maintenance plan Financial plans now look ahead in detail for the next 3 years and are updated annually. The above plans create a structure for development of all aspects of the Cathedral and provide the basis for ongoing, long-term stability and growth. In 2012 the quinquennial survey was completed, as well as a conservation management plan and archaeological report.
5.55.55.5 FiveFive- ---yearyear trends Set out below are key financial indicators over the last five years:
20 11 /1 2 201 2/13 2013/14 2014/15 2015/16 £000 £000 £000 £000 £000 Total income 4, 521 5,174 5,299 8,868* 7,025 * WCEL covenant to Chapter 387 394 403 374 433 Other visitor income 587 558 600 603 600 Rental income 591 588 635 607 651 Investment income 327 346 366 384 377 Cathedral repairs/upkeep 916 910 977 853 1,004 Other expenditure on mission 1,426 1, 878 1,701 4,889** 4,1 57 ** General Fund result (before capital gains) 25 33 12 13 24
* Includes grants of £2,841k received relating to the Cathedral projects. (2014/15 included grants of £4,733k) ** Includes expenditure of £2,772k relating to the Cathedral projects. (2014/15 included expenditure of £3,441k)
5.65.65.6 Commentary on the 2012015555////11116666 results The Dean and Chapter present the audited accounts for the Year to 31st March 2016. The year finished with an operating surplus for the year of £24k, which was a great improvement on the expected operating deficit, and represents a great achievement for the Cathedral. Commentary on the key financial indicators is set out below.
WCEL Covenant to Chapter
All profits from the Cathedral’s trading company, Winchester Cathedral Enterprises Ltd, which includes the activities of Retail, Catering, Box Office and Events operations, are covenanted to Dean and Chapter. The total net profit for the year was £433k, up £59k from the £374k achieved in 2014/15. This result is the highest achieved by the trading company.
This year includes the profits from the Flower Festival held in June 2015, which had no comparable event in the prior year.
As reported previously the Refectory and catering operation was outsourced to the catering company Kudos during 2014. This year included a complete year of trading under this new arrangement. The change in catering has enabled us to protect the contributions from this activity, and has maintained the high standards of quality and service.
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Visitor Income
The major works programme continues this year, and measures were put in place to minimise disruption and inconvenience for visitors. We forecasted that these factors would have an impact on our numbers. The paying visitor numbers including groups were 110,000, which was a small fall on the £112,000 welcomed in the previous year. The Entrance Desk income received was slightly down (by £3k) to £600k in total.
Voluntary Income, Grants receivable and Income from appeals and fundraising
Income from congregational collections, giving and donations fell by £16k primarily within offertories from shared collection services. Gift Aid continues to make a significant contribution, and overall this increased by £10k to £126k. The Deanery Bookstall contributed £35k and the Cloisters shop £32k.
Grants receivable in 2015/16 were £3,033k (compared to £4,938k in 2014/15). The majority of the income received was for the cathedral projects, with income from the Heritage Lottery Fund, Winchester Cathedral Trust and the Friends of Winchester Cathedral totalling £2,841k (£4,733k in 2014/15)
During the year legacies were received from the estates of Susan Graham for £2,000, and from C.J. Compton-Rickett for £17,500.
Property Income
2015/16 was a more stable year compared to the previous year for the relatively low levels of occupancy changes. The property rental income received increased to £651k, from £607k in the previous year. All properties were occupied at the year end.
Investment Income
Investment income received decreased slightly in the year to £377k from £384k in the previous year.
Volunteer time
The Cathedral has always benefited from the vast amount of time and effort from its volunteers. During the year over 1,048 volunteer days were recorded against the Cathedral Projects work alone.
Restricted funds
There was an increase in the value of Restricted Funds to £35.0m (up £1.2m from £33.8m in 2014/15). The majority of this increase in funds was due to the annual review of the overall property portfolio, which increased the property book value by £1.2m. The property value represents £33.7m of the Restricted fund.
Expenditure
Spend on the Cathedral projects continues with expenditure of £2.8m (2014/15: £3.4m). The main areas of spend in the current year were on the replacement of the lead roof on the presbytery, conserving the vault below, together with the bosses. Additionally work started on the presbytery windows, conservation of the mortuary chests, cathedral lighting, and preparatory works in the south transept.
Expenditure increased this year on Precincts, security, and gardens upkeep to £408k, from £202k in the previous year. This year we have started to expend resources on the deanery refurbishment programme highlighted in the quinquennial, to which we have spent this year £117k. Additionally due to four attempts to steal the lead during the re-roofing project we incurred necessary security costs of £20k, and emergency repairs to pathways £10k. Annual Report Statutory Supplement and Audited Accounts - Page 20
Maintenance on the rented properties decreased due to the higher levels of tenanted properties in the year (£42k of maintenance, from £56k in 2014/15) Expenditure on properties for key workers increased, as a property became available during the year. In total maintenance of all properties totalled £61k
The Cathedral continued its policy started last year of moving all staff toward the Living Foundations Living Wage, and the second phase was implemented in pay awards from April 2016.
666 Plans for future periods
The year ahead promises to be action packed in many ways for the Cathedral. Dean James officially retired on the 12th June 2016 but continues to be our Dean until 14th July 2016. Canon Roly Riem (our Vice Dean), takes up the role of acting Dean during the interregnum.
We have now achieved delivery of four significant capital projects; the re-leading of the quire roof, the conservation of the medieval timber frame underneath, the conservation of the Mortuary Chests and not forgetting the Wessex Learning Centre both refurbished “old” and “new build”. We are on target to complete our overall project plan objectives by December 2018 which will conclude with the HLF evaluation and “sign off” in summer 2019 of the Kings & Scribes Birth of a Nation HLF Project.
The Wessex Learning Centre with the Apothecary and Sensory Garden includes state of the art IT and network facilities linking to the Cathedral and exhibitions. With the centre being fully equipped for people of all abilities it is our ambition to grow our school visit numbers to around 33,000 visits by 2019/20.
The south transept project has commenced along with the planning for our 3 new major exhibitions. The engineering challenge of installing the new glass lift will soon begin its 56 week programme. The windows and the medieval glass conservation continues apace and the stonemasons are working at full capacity conserving stone work and carrying out essential mullion repairs. Meanwhile, we aim to have the Bosses and timber repairs completed by the winter 2016.
The next major Cathedral project, the refurbishment and modifications to the Deanery will physically commence this summer. Plans have been progressing since autumn last year. This forms the first chapter in our Grounds and Estates Plan 2016-2025 which follows on from the Close Plan (2005-2015). Further development of the Grounds and Estates Plan will await the arrival of the new Dean.
The next Quinquennial is due Summer/Autumn 2017 which will highlight and celebrate the significant amount of capital and development works completed during the past 5 years.
We continue to develop our people with the addition of 2 new apprenticeships this coming year. We are actively building on the success of the paradigm shift in volunteering with induction, recruitment, role profiles and an increase of opportunities for our demographics in Volunteers. Chapter are working towards Investors in volunteering.
We aim to hold our first Stonemasonry Festival this year to celebrate the craft skills required by Stonemasons.
A challenging, yet exciting future to look forward to. The fundraising has been going very well but we approach the financial implications of Brexit with prudence and caution.
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777 AAAuditedAudited Accounts
AUDITED ACCOUNTS 31 March 2016
The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester
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Statement of the Chapter's financial responsibilities
The Chapter is responsible under requirements laid down by the Church Commissioners under the powers given them by Section 27 of the Cathedrals Measure 1999 for
• preparing and publishing an annual report and audited accounts which give a true and fair view of the financial activities for each financial year and of the assets, liabilities and funds at the end of each financial year of the Cathedral and its connected entities; • stating that they have complied in all material respects with the regulations on the subject prepared by the CAFA or describing which recommendations have not been complied with and giving reasons for the non compliance; • selecting suitable accounting policies and then applying them consistently; • making judgements and estimates that are reasonable and prudent; • keeping proper accounting records from which the financial position of the Cathedral can be ascertained with reasonable accuracy at any time, and safeguarding the assets of the cathedral and taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Chapter is aware:
• there is no relevant audit information of which the Cathedral's auditors are unaware; and • the Chapter has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The Chapter is responsible for the maintenance and integrity of the Cathedral and financial information included on the Cathedral's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Independent auditor's report to the members of Chapter of Winchester Cathedral
We have audited the financial statements of Winchester Cathedral for the year ended 31 March 2016 which comprise the principal accounting policies, the consolidated statement of financial activities, the consolidated balance sheet, the Cathedral balance sheet, the consolidated cash flow statement 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 FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
This report is made solely to the Chapter, as a body, in accordance with the regulations made under Section 27 of the Cathedrals Measure 1999. Our audit work has been undertaken so that we might state to the Chapter 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 Cathedral and the Chapter as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of the Chapter and auditor As explained more fully in the Statement of the Chapter's Responsibilities, the Chapter is responsible for the preparation of the financial statements which give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/auditscopeukprivate
Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the Cathedral's affairs as at 31 March 2016, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the regulations made under Section 27 of the Cathedrals Measure 1999.
Matters on which we are required to report by exceptionexception We have nothing to report in respect of the following matters where we are required to report it to you if, in our opinion: • adequate accounting records have not been kept; or • the information given in the Annual Report is inconsistent in any material respect with the financial statements; or • the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for audit.
Grant Thornton UK LLP Statutory Auditors – Chartered Accountants Southampton 18.07.16
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Principal accounting policies
Basis of preparation
The accounts have been prepared in accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals issued in February 2015 by the Cathedrals Administration and Finance Association, updated for Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014. They have been prepared under the historical cost convention except that property and investments are included at a valuation.
The principal accounting policies are set out below.
Reconciliation with previously Generally Accepted Accounting Practice In preparing the accounts, the Chapter have considered whether in applying the accounting policies required by FRS102 a restatement of comparative items was needed.
The restatements are explained in note 28.
Basis of consolidation
The consolidated financial statements comprise those of the Cathedral and of its wholly-owned subsidiary company Winchester Cathedral Enterprises Limited. The consolidated financial statements also comprise the results of Winchester Cathedral Box Office Limited, a wholly owned subsidiary of Winchester Cathedral Enterprises Limited. Winchester Cathedral Box Office Limited was dormant throughout the period.
Funds
The Cathedral's permanent endowment funds are set out in note 15 to the financial statements. They include the Fabric, Music and Staff Pension Fund investments of the previous Winchester Cathedral Appeal. Income from the permanent endowment funds is unrestricted.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor and are set out in note 16 to the financial statements. The reserve arising on the revaluation of properties within the Cathedral Close is deemed to be a restricted fund.
Unrestricted funds are funds where no restrictions are placed on the use by the Cathedral as regards either the capital or the income, and include the reserve arising on the revaluation of properties other than in the Cathedral Close.
Income
Dividend income and bank interest are included at the time of receipt at amounts which include recoverable income tax where appropriate. Voluntary income is received by way of general donations, special donations, church collections and Gift Aid donations. Such income is included at the time of receipt at amounts which include recoverable income tax on Gift Aid donations. Other income is included at the time of receipt or, in the case of grants, when the necessary conditions have been met. Legacy income is recognised when it is receivable.
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Resources expended
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Chapter to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
"Costs of generating funds" comprises costs of attracting voluntary income, costs of trading for fund raising purpose, and costs of managing the investment properties.
"Expenditure on mission" comprises costs of the Cathedral's ministry, upkeep of the Cathedral fabric and precincts, and education and outreach.
"Governance" comprises costs of meeting the constitutional and statutory requirements of the Cathedral and its subsidiary companies.
Repairs, maintenance and restoration costs are valued on the basis of work done during the financial year.
Support costs, comprising salaries and office costs, have been allocated to the activity cost categories based on an estimate of the time spent.
Fixed assets
Property valuations have been included in the balance sheet on the following basis:
investment properties – market value non-investment properties – existing use value
In line with FRS 102, properties are revalued on the basis of a full valuation at least every five years. In years with no full valuation, the Cathedral bases any valuation on the average property price movement during the period.
In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral as it is an inalienable and historic building for which no reliable cost information or conventional valuation basis is available.
Depreciation
Depreciation is calculated to write off the cost or valuation less estimated residual value of all tangible fixed assets (other than buildings) by equal annual instalments over their expected useful economic lives. The rates generally applicable are:
Capital equipment 25% Fixtures and fittings 20 -33 % Equipment 20% Office refurbishment 10%
As all of the properties are maintained in a state of repair such that their estimated residual value is not less than their improvement cost or carrying amount, the annual depreciation charge is £Nil.
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Investments
Investments are included in the balance sheet at their market values, except for shares in wholly-owned companies which are included at cost. The capital value of the investments funds represents both unrestricted, restricted and endowment funds. The realised and unrealised gains and losses on the investment fund is allocated to the funds in the ratio of their market value at the beginning of the financial year.
Stocks
Shop and refectory stocks are stated at the lower of cost and net realisable value.
In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral inventory which comprises items of architectural, archaeological, artistic or historic interest.
Debtors
Short term debtors are measured at transaction price less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Creditors
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Pension schemes
Chapter participates in the Church of England Defined Contributions Scheme, part of the Church Workers’ Pension Scheme. New employees may enrol in this scheme. In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of England Defined Benefits Scheme (DBS), also part of the Church Workers’ Pension Scheme, both of which schemes are now closed to new members.
The pension costs represent the amount of the contributions payable to pension schemes in respect of the accounting period.
Pension deficit recovery methods are recognised as a liability on the balance sheet.
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Heritage Assets
The Cathedral holds a number of heritage assets with historic and artistic value. The nature and scale of the collection belonging to the Chapter of Winchester include: • Medieval manuscripts, including the Winchester Bible the largest and finest of all surviving 12th- century English bibles • The Morley Library a beautiful 17th-century collection of rare books bequeathed by Winchester’s Bishop Morley • Winchester Cathedral Archives • Winchester Cathedral wall monuments • Winchester Cathedral ledger stones and floor monuments • Winchester Cathedral medieval wall paintings • An Antony Gormley sculpture, Sound II • Other artefacts, including the Shaftesbury Bowl, the only surviving example of late Saxon glass in England
The Cathedral’s policy for the acquisition, preservation, management and disposal of heritage assets is described in the Care of Cathedrals Measure 2011.
Valuation of the artefacts is not deemed necessary for the day to day operation of the Cathedral. In addition the quantity of items and the diverse nature of the collection would make valuation prohibitively expensive compared with the additional benefits derived by the Cathedral and users of the accounts. As a result, no value is reported for these assets in the Balance Sheet.
Expenditure which is required to preserve or prevent further deterioration of individual items is recognised in the Income and Expenditure Account when it is incurred.
Contingent liabilities
A contingent liability is identified and disclosed resulting from a possible obligation which will only be confirmed by the occurrence of one or more uncertain future events not wholly within the Chapters control, a present obligation where settlement is either not considered probable, or the amount has not been communicated and that amount cannot be estimated reliably.
Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of these accounts requires management to note judgements and estimates that effect the reported amount of assets and liabilities at the balance sheet date and the reported results during the financial year.
The following judgements and estimates have been made in these accounts:
a) Management have made a provision for the chapters obligation in relation to chancel liabilities
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Consolidated statement of financial activities
Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2016 2016 2016 2016 2016 2015 £000 £000 £000 £000 £000 £000 (note 27) Incoming resources 1 Voluntary income 420 89 185 - 694 609 Grants receivable 5 - 3,028 - 3,033 4,938 Charges and fees arising in the course of charitable activities 91 - - - 91 100 Income from activities generating funds 2,179 - - - 2,179 2,230 Income from property and investments 1,028 - - - 1,028 991
Total incoming resources 3,723 89 3,213 - 7,025 8,868 Cost of generating funds 3,5 1,487 - 10 - 1,497 1,668
Net incoming resources available for charitable activities 2,236 89 3,203 - 5,528 7,200
Resources expended on charitable 4 activities Ministry 903 - 258 - 1,161 1,157 Cathedral and precincts upkeep 956 - 48 - 1,004 830 Education and outreach 169 - 29 - 198 232 Other expenditure on charitable activities 26 - 2,772 - 2,798 3,466
2,054 - 3,107 - 5,161 5,685
Governance costs 6 158 - - - 158 147
Net incoming resources 24 89 96 - 209 1,368
Other recognised gains Investment property - - 1,201 - 1,201 1,178 Investments (37) (7) (29) (297) (370) 294
(37) (7) 1,172 (297) 831 1,472 Net movement in funds (13) 82 1,268 (297) 1,040 2,840
Fund balances brought forward 2,402 155 33,751 6,172 42,480 39,640
2,389 237 35,019 5,875 43,520 42,480 Fund balances carried forward
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Consolidated balance sheet
Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2016 2016 2016 2016 2016 2015 £000 £000 £000 £000 £000 £000 (note 27) Fixed assets Investment assets Property 9 80 - 18,549 - 18,629 17,428 Investments 10 136 237 1,115 5,875 7,363 7,715
216 237 19,664 5,875 25,992 25,143
Non-investment assets Property 11 1,755 - 15,304 - 17,059 17,002 Plant & equipment 12 171 - - - 171 253
1,926 - 15,304 - 17,230 17,255
Total fixed assets 2,142 237 34,968 5,875 43,222 42,398
Current assets Stocks 133 - - - 133 142 Debtors 13 432 - 331 - 763 751 Cash at bank and in hand 821 - 2,322 - 3,143 1,604
1,386 - 2,653 - 4,039 2,497
Current liabilities 14 (1,139) - (2,602) - (3,741) (2,415)
Net current assets / (liabilities) 247 - 51 - 298 82
Total assets less total liabilities 2,389 237 35,019 5,875 43,520 42,480
Funds General fund 18 1,597 - - - 1,597 1,610 Property revaluation reserve 16,18 792 - 33,424 - 34,216 32,946 Music fund 15 - - - 2,734 2,734 2,875 Other funds 15,16,17 - 237 1,595 3,141 4,973 5,049
2,389 237 35,019 5,875 43,520 42,480
The financial statements were approved by the Chapter at their meeting on 08 July 2016 and are signed on their behalf by:
The Very Reverend J Atwell - Dean
Mrs Annabelle Boyes CDir, FIOD - Receiver General & Canon Treasurer
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Balance Sheet - Dean & Chapter only
Unrestricted Designated Restricted Endowment Total Total
funds funds funds funds funds funds Note 2016 2016 2016 2016 2016 2015 £000 £000 £000 £000 £000 £000 (note 27) Fixed assets Investment assets Property 9 80 - 18,549 - 18,629 16,508 Investments 10 146 237 1,115 5,875 7,373 7,725
226 237 19,664 5,875 26,002 24,233
Non-investment assets Property 11 385 - 15,614 - 15,999 16,862 Plant & equipment 12 28 - - - 28 38
413 - 15,614 - 16,027 16,900
Total fixed assets 639 237 35,278 5,875 42,029 41,133
Current assets Stocks 22 - - - 22 30 Debtors 13 749 - 331 - 1,080 1,088 Cash at bank and in hand 776 - 2,322 - 3,098 1,585
1,547 - 2,653 - 4,200 2,703
Current liabilities 14 (1,081) - (2,602) - (3,683) (2,330)
Net current assets / (liabilities) 466 - 51 - 517 373
Total assets less current liabilities 1,105 237 35,329 5,875 42,546 41,506
Funds General fund 18 788 - - - 788 801 Property revaluation reserve16,18 317 - 33,734 - 34,051 32,781 Music fund 15 - - - 2,734 2,734 2,875 Other funds 15,16,17 - 237 1,595 3,141 4,973 5,049
1,105 237 35,329 5,875 42,546 41,506
The financial statements were approved by the Chapter at their meeting on 08 July 2016 and are signed on their behalf by:
The Very Reverend J Atwell - Dean
Mrs Annabelle Boyes CDir, FIOD - Receiver General & Canon Treasurer
Annual Report Statutory Supplement and Audited Accounts - Page 31
Consolidated cash flow statement
Note 2016 2016 2015 2015 £000 £000 £000 £000
Net cash inflow / (outflow) from operating activities 19 661 1,537
Returns on investments Rents received net of costs 635 551 Interest and dividends received 346 354
981 905 Capital expenditure and financial investment Sale proceeds of investments less amounts reinvested 16 4 Purchases of furniture and equipment (87) (1,401)
(71) (1,397)
Cash inflow before management of liquid resources and financing 1,571 1,045
Management of liquid resources
Net decrease in liquid resources 20 (32) (3)
Increase in cash 20 1,539 1,042
Annual Report Statutory Supplement and Audited Accounts - Page 32
Notes to the financial statements
1 Consolidated incoming resources
Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2016 2016 2016 2016 2016 2015 £000 £000 £000 £000 £000 £000 Voluntary income Congregational collections and giving 83 - 28 - 111 127 Donations 229 89 27 - 345 237 Income from appeals and fundraising 22 - 47 - 69 74 Tax recoverable under Gift Aid 84 - - - 84 95 Income from Friends and local trusts - - 66 - 66 76 Legacies 2 - 17 - 19 -
420 89 185 - 694 609
Grants receivable Church Commissioners - - 139 - 139 140 Heritage Lottery Fund - - 2,841 - 2,841 4,733 Other revenue and capital grants 5 - 48 - 53 65
5 - 3,028 - 3,033 4,938
Charges and fees arising in the course of charitable activities Facility and other fees 91 - - - 91 100
Income from activities generating funds Charges to visitors 600 - - - 600 603 Gross income of shop, refectory and other trading activities 1,579 - - - 1,579 1,627 Other external charges ------2,179 - - - 2,179 2,230 Income from property and investments Income from investment property 651 - - - 651 607 Income from other investments 377 - - - 377 384
1,028 - - - 1,028 991
Other income Other items ------
Total incoming resources 3,723 89 3,213 - 7,025 8,868
Annual Report Statutory Supplement and Audited Accounts - Page 33
2 2 Income and expenditure from trading subsidiaries
a) Winchester Cathedral Enterprises Limited
Winchester Cathedral Enterprises Limited is a wholly owned subsidiary which is incorporated in the UK, Registered Company No. 2100067. The company operates a retail shop; a refectory; the Cathedral box office; the organisation of functions and events including the Christmas market. A summary of the trading results for the year, which have been consolidated into Chapter accounts, are shown below. Audited accounts have been prepared and filed with the Registrar of Companies.
2016 2015 £000 £000
Turnover 1,579 1,627
Cost of sales (765) (712)
Gross profit 814 915
Other operating charges (381) (541) Other operating income - -
Operating profit 433 374
Interest receivable - - 433 374 Profit for the financial year
The Net Assets of Winchester Cathedral Enterprises Limited at 31 March 2016 840 840
The profits from WCEL were donated to Chapter for £433k (2015: £374k)
b) Winchester Cathedral Box Office Limited
Winchester Cathedral Box Office Limited is also a wholly owned subsidiary which is incorporated in the UK, Registered Company No. 5945638. Until the 31 March 2010 the company operated the Cathedral box office facility for both internal and external events. Since 1 April 2010 the box office function has traded through the legal entity of Winchester Cathedral Enterprises Limited. The company has therefore been dormant since that time. At 31 March 2016 it had net assets of £1 (2014/15 £1).
3 3 Cost of generating funds Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2016 2016 2016 2016 2016 2015 £000 £000 £000 £000 £000 £000 Costs of facilities for visitors 81 - - - 81 83 Costs of services directly recoverable 7 - 10 - 17 18 Gross costs of shop, refectory and other trading activities 1,146 - - - 1,146 1,253 General marketing costs 142 - - - 142 167 Costs of appeals and fund raising 64 - - - 64 72 Investment property costs 16 - - - 16 56 Investment managers fees 31 - - - 31 30
1,487 - 10 - 1,497 1,679
Annual Report Statutory Supplement and Audited Accounts - Page 34
4 Resources expended on charitable activities Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2016 2016 2016 2016 2016 2015 Ministry £000 £000 £000 £000 £000 £000 Clergy stipends and working expenses 37 - 128 - 165 130 Clergy housing costs 44 - - - 44 41 Clergy support costs 65 - - - 65 69 Services and music 757 - 130 - 887 917
903 - 258 - 1,161 1,157
Cathedral and precincts upkeep Major repairs and restoration 184 - 19 - 203 236 Maintenance and interior upkeep 243 - 29 - 272 270 Cathedral insurance 102 - - - 102 100 Precincts, security and gardens upkeep 408 - - 408 197 Support costs 19 - - - 19 27
956 - 48 - 1,004 830
Education and outreach Educational activities 78 - - - 78 86 Archives and library 82 - - - 82 87 Charitable and other giving 9 - 29 - 38 59
169 - 29 - 198 232 Other expenditure on charitable activities Heritage Lottery Fund Project - - 2,772 - 2,772 3,441 Irrecoverable VAT 26 - - - 26 25
26 - 2,772 - 2,798 3,466
Total resources expended on charitable activities 2,054 - 3,107 - 5,161 5,685
5 5 Support costs Direct Support Total Direct Support Total costs costs costs costs 2016 2016 2016 2015 2015 2015 £000 £000 £000 £000 £000 £000
Costs of generating funds 1,429 68 1,497 1,572 107 1,679 Ministry 959 202 1,161 920 265 1,185 Cathedral and precincts upkeep 808 196 1,004 636 217 853 Education and outreach 158 40 198 185 53 238 Other expenditure on mission 2,798 - 2,798 3,466 - 3,466 Governance costs 158 - 158 147 - 147
6,310 506 6,816 6,926 642 7,568
6 Governance costs 2016 2015 £000 £000 Auditors' remuneration: Audit services 18 18 Accountancy and other services - - Taxation advice 1 1 Governance and strategic planning 139 128
158 147
Annual Report Statutory Supplement and Audited Accounts - Page 35
7 7 Employees Staff costs during the year were as follows: 2016 2015 £000 £000 Salaries and stipends 1,557 1,575 Social security costs 117 116 Other pension costs 79 174
1,753 1,865
The average number of employees on a full time equivalent basis during the year was as follows:
2016 2015 Cathedral staff 16 16 Administration 13 15 Education 3 3 Maintenance 15 12 Shop and Refectory 5 11 Visitor services 5 5
57 62
One member of the Chapter, the Receiver General, received remuneration during the year of £90,000 (2015: £85,000). The Dean, the Canon Chancellor and Precentor Stipends are paid by the Church Commissioners.
The remuneration and pension provision of the clerical members of the Chapter are covered in full by a grant from the Church Commissioners in accordance with the scales laid down by the Archbishops’ Council, the Church of England pensions Board and the Church Commissioners. A total of £6,259 (2015: £6,611) was reimbursed to four members of the Chapter during the year in respect of travelling and other out of pocket expenses.
8 Auditors’ remuneration
The total remuneration receivable by the auditors from the Chapter, Winchester Cathedral Enterprises Limited and Winchester Cathedral Box Office Limited was as follows:
2016 2015 £000 £000
Audit services 18 18 Accountancy and other services - - Taxation advice 1 1
19 19
9 Investment property
Consolidated and Chapter Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000 Valuation At 1 April 2015 80 - 17,348 - 17,428 Change in use - - - - - Additions - - - - - Change in market value - - 1,201 - 1,201
At 31 March 2016 80 - 18,549 - 18,629
The properties were revalued as at 31 March 2014 by Messrs Carter Jonas LLP, a firm regulated by the Royal Institute of Chartered Surveyors, on the basis of market value. On 31 March 2016 Chapter carried out an interim valuation of the properties.
Annual Report Statutory Supplement and Audited Accounts - Page 36
10 10 Investments
Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000
Investments at market value 1 April 2015 771 155 613 6,156 7,695 Additions 56 11 45 450 562 Proceeds from disposals (57) (11) (46) (456) (570) Transfers (602) 89 528 (15) - Net increase/(decrease) on disposals and revaluations (37) (8) (29) (298) (372)
Investments at market value 31 March 2016 131 236 1,111 5,837 7,315
Short term deposits - - - - - Uninvested Cash 5 1 4 38 48
Market Value Carried Forward (Consolidated) 136 237 1,115 5,875 7,363
Investments in Group Undertaking at Net Asset Value 10 - - - 10
Investments (Chapter) 146 237 1,115 5,875 7,373
2016 2015 £000 £000
Equity funds 4,443 5,037 Fixed interest funds 842 864 Portfolio funds 400 377 Property funds 741 563 Other managed funds 889 854 7,315 7,695
Other liquid resources - - Cash fund 48 20 Shares in subsidiary companies 10 10
7,373 7,725
The Chapter owns the whole of the issued share capital of Winchester Cathedral Enterprises Limited, and it directly holds 100% of the issued share capital of Winchester Cathedral Box Office Limited.
Annual Report Statutory Supplement and Audited Accounts - Page 37
11 11 Non-investment property Restricted Assets in Consolidated Unrestricted Designated Restricted course of Endowment Total funds funds funds construction funds funds Valuation £000 £000 £000 £000 £000 £000 At 1 April 2015 1,755 - 13,955 1,292 - 17,002 Additions - - - 69 - 69 Depreciation - - (12) - - (12) Change in market value ------
At 31 March 2016 1,755 - 13,943 1,361 - 17,059
Restricted Assets in Chapter Unrestricted Designated Restricted course of Endowment Total funds funds funds construction funds funds Valuation £000 £000 £000 £000 £000 £000 At 1 April 2015 385 - 14,265 1,292 - 15,942 Additions - - - 69 - 69 Depreciation - - (12) - - (12) Change in market value ------
At 31 March 2016 385 - 14,253 1,361 - 15,999
Non-investment properties are held and used as follows: Long Freehold leasehold Total At 1 April 2015 £000 £000 £000 For Cathedral administration and workshops 1,350 - 1,350 For Cathedral clergy and staff housing 9,690 220 9,910 For the Deanery 3,500 - 3,500 For Assets in course of construction 1,292 - 1,292 For the education centre 500 - 500 Leased to Winchester Cathedral Enterprises Limited 310 - 310
Chapter total 16,642 - 220 16,862 Eliminated on consolidation (310) - (310) For Cathedral trading activities 450 - 450
Consolidated total 16,782 220 17,002
Long Freehold leasehold Total At 31 March 2016 £000 £000 £000 For Cathedral administration and workshops 1,338 - 1,338 For Cathedral clergy and staff housing 9,690 220 9,910 For the Deanery 3,500 - 3,500 For Assets in course of construction 1,361 - 1,361 For the education centre 500 - 500 Leased to Winchester Cathedral Enterprises Limited 310 - 310
Chapter total 16,699 220 16,919 Eliminated on consolidation (310) - (310) For Cathedral trading activities 450 - 450
Consolidated total 16,839 220 17,059
The properties were revalued as at 31 March 2014 by Messrs Carter Jonas LLP, a firm regulated by the Royal Institute of Chartered Surveyors, on the basis of existing use. During the year ended 31 March 2016 the New Learning Centre was under construction, and is shown above as Assets in course of construction.
Annual Report Statutory Supplement and Audited Accounts - Page 38
12 12 Cathedral plant and equipment
Consolidated Chapter £000 £000 Cost At 1 April 2015 679 163 Additions 18 14 Disposals (6) -
At 31 March 2016 691 177
Depreciation At 1 April 2015 426 125 Charge for the year 96 24 Disposals (2) -
At 31 March 2016 520 149
Net book value
.At 31 March 2016 171 28
At 31 March 2015 253 38
13 13 Debtors Consolidated Chapter 2016 2015 2016 2015 £000 £000 £000 £000
Winchester Cathedral Enterprises Limited - - 385 407 Social security and other taxes 76 155 94 173 Other debtors 527 530 459 481 Prepayments 160 66 142 27
763 751 1,080 1,088
14 14 Current liabilities Consolidated Chapter 2016 2015 2016 2015 £000 £000 £000 £000
Trade creditors 787 484 769 466 Social security and other taxes 19 37 34 35 Other creditors 177 68 177 68 Accruals 2,758 1,826 2,703 1,761
3,741 2,415 3,683 2,330
15 15 Endowment funds
Consolidated and Chapter At 1 April Net Investment At 31 March 2015 Incoming/ gains/ 2016 (outgoing) (losses) in resources the year £000 £000 £000 £000 Appeal fund: Fabric 2,175 - (111) 2,064 Music 71 - - 71 Staff 25 - - 25
2,271 - (111) 2,160 Music 2,875 - (141) 2,734 Permanent endowment 907 - (45) 862 John and Kathleen Kyle Memorial Fund for Lay Clerks 80 - - 80 Roger Bruce Ellery 39 - - 39
6,172 - (297) 5,875 Annual Report Statutory Supplement and Audited Accounts - Page 39
16 16 Restricted funds
Consolidated At 1 April Net Investment At 31 March 2015 Incoming/ gains/ 2016 (outgoing) (losses) in resources the year £000 £000 £000 £000
AEV Day deceased 1,188 - (30) 1,158 Fabric 116 17 - 133 Fabric and worship 45 - - 45 Deanery furnishings 18 - - 18 Cathedral charitable 36 7 - 43 Deanery Garden 7 - - 7 Library 28 - - 28 Thomas-Davies 13 (1) - 12 Venerable Altar/ Swags 5 - - 5 Woodhouse Trust 5 - - 5 Girls’ choir 7 1 - 8 Organ 116 - - 116 Others under £5,000 13 4 - 17
1,597 28 (30) 1,595 Close property revaluation reserve 32,154 1,270 - 33,424
33,751 1,298 (30) 35,019
AEV Day Deceased - Established by legacy. This fund is restricted to Fabric. The underlying value of the legacy should be preserved and the income used to offset costs of Cathedral maintenance and conservation Fabric - Funds restricted to the working repair and conservation of the Fabric of the Cathedral Fabric and worship - Funds restricted to the internal fabric relating worship and liturgy in the Cathedral Deanery furnishings - Funds restricted to provide furnishings and fittings for the Deanery Cathedral charitable - Income provided by donation to the Cathedral to support other charitable causes Deanery garden - Funds restricted to the repair and maintenance of the Deanery garden Library - Funds for expenditure on the Library. Income augmented from time to time by restricted donations. Thomas-Davies - A Fund whose income is to be used at the discretion of the Dean and the Receiver General to meet the special needs and welfare of the Virgers and Lay Clerks Venerable Altar / Swags - Income received from donations restricted to the repair and maintenance of the Venerable Altar, Icons and Swags Woodhouse Trust - Funds restricted to sound and light in the Cathedral Girls' Choir - Funds to support the Girls' choir Organ - Funds to repair and maintain the Organ Others under £5,000 - Monies given for specific activities or projects that are not substantial in balance, income or expenditure
Annual Report Statutory Supplement and Audited Accounts - Page 40
16 16 Restricted funds (cont'd)
Chapter At 1 April Net Investment At 31 March 2015 Incoming/ gains/ 2016 (outgoing) (losses) in resources the year £000 £000 £000 £000
AEV Day deceased 1,188 - (30) 1,158 Fabric 116 17 - 133 Fabric and worship 45 - - 45 Deanery furnishings 18 - - 18 Cathedral charitable 36 7 - 43 Deanery garden 7 - - 7 Library 28 - - 28 Thomas-Davies 13 (1) - 12 Venerable Altar/ Swags 5 - - 5 Woodhouse Trust 5 - - 5 Girls’ choir 7 1 - 8 Organ 116 - - 116 Others under £5,000 13 4 - 17
1,597 28 (30) 1,595 Close property revaluation reserve 32,464 1,270 - 33,734
34,061 1,298 (30) 35,329
The details of the restricted funds are shown above
17 17 Designated funds Consolidated and Chapter At 1 April Net Investment At 31 March 2015 Incoming/ gains/ 2016 (outgoing) (losses) in £000 £000 £000 £000
Kings & Scribes Project Fund 41 - (2) 39 Deanery Maintenance Fund - 89 - 89 Sound & Light Fund 69 - (3) 66 Organ Fund & Music Library 45 - (2) 43
155 89 (7) 237
Kings and scribes Fund - Funds to support the associated projects of the "Kings and Scribes - A Birth of a Nation" project. Deanery Maintenance Fund - Funds to repair and maintain the Deanery Sound & light Fund - Funds for the Sound & light project Organ - Funds to repair and maintain the Organ, and music library
Annual Report Statutory Supplement and Audited Accounts - Page 41
18 18 Unrestricted funds Consolidated At 1 April Net Investment At 31 March 2015 Incoming/ gains/ 2016 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 1,610 24 (37) 1,597 Property revaluation reserve 792 - - 792
2,402 24 (37) 2,389
Chapter At 1 April Net Investment At 31 March 2015 Incoming/ gains/ 2016 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 801 24 (37) 788 Property revaluation reserve 317 - - 317
1,118 24 (37) 1,105
19 19 Reconciliation of net incoming resources to net cash outflow from operating activities 2016 2015 £000 £000 Net incoming resources before revaluations and disposal of investments 209 1,368 Less income from property and investments (1,028) (991) Add property management costs and investment manager costs. 49 86 Depreciation charges 108 106 Decrease/(increase) in stocks 9 10 (Increase)/decrease in debtors (12) (441) Increase in creditors 1,326 1,399
Net cash inflow / (outflow) from operating activities 661 1,537
20 20 Reconciliation of net cash flow to movement in net funds 2016 2015 £000 £000 Increase/(decrease) in cash 1,539 1,042 Increase /(decrease) in liquid resources 28 4
Increase/(decrease) in net funds 1,567 1,046 Net funds at 1 April 2015 1,624 578
Net funds at 31 March 2016 3,191 1,624
2 1 21 Analysis of changes in net funds At 1 April Cash flow At 31 March 2015 2016 £000 £000 £000 Cash at bank and in hand/(Overdraft) 1,604 1,539 3,143 Cash balances included in investments 20 28 48
1,624 1,567 3,191
22 22 Capital commitments
There were no capital commitments at 31 March 2016 or 31 March 2015.
Annual Report Statutory Supplement and Audited Accounts - Page 42
23 23 Contingent assets/liabilities
The Chapter is aware of its obligations in relation to Chancel liabilities. Last year the Chapter was notified of one such liability. Whilst the quantum of this cannot be reliably measured, a provision of £30,000 has been made in the financial statements. There were no contingent assets or liabilities at 31 March 2016 or 31 March 2015
24 24 Pension schemes
Chapter participates in the Church of England Pension Builder Scheme (PBS), within the Church Workers’ Pension Scheme, which is administered by the Church of England Pensions Board. The PBS is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes. Pension Builder Classic provides a pension for members payable from retirement, accumulated from contributions paid and converted into a pension benefit during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending upon the investment returns and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members' Normal Pension Age. At 31 March 2016, Winchester Cathedral had no active members, and 2 deferred members in the Pension Builder Classic section. Winchester Cathedral had 49 active members and 7 deferred members in the Pension Builder 2014 section. The assets of the PBS are held separately from those of the employer. As at the formal valuation as at December 2010, the PBS was in surplus on an ongoing funding basis. A formal valuation of the PBS is being carried out as at December 2013 but, as at the end of March 2015, the final results have yet to be announced. Pension Builder 2014 commenced in February 2014, so will be included in the next valuation due as at December 2016. Winchester Cathedral is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the PBS. For schemes like this, paragraph 9(b) of financial Reporting Standard 17 (FRS 17) requiring Winchester Cathedral to account for pension costs on the basis of contributions actually payable to the Scheme in the year.
Winchester Cathedral contributes 8% of basic salary and the employees are required to contribute a minimum contribution of 3%. Winchester Cathedral contributions for the year to PBS totalled £85,081 (2015 £71,620), and there were no contributions outstanding at the year end. In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of England Defined Benefits Scheme (DBS), also part of the Church Workers’ Pension Scheme, both of which schemes are now closed to new members. The DBS section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries. At 31 March 2016 the Chapter had 1 active members and 15 deferred pensioner members in the DBS For funding purposes, the DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns. The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers' sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool. It is not possible to attribute the scheme's assets and liabilities to specific employers, since each employer, through the Life Risk Pool, is exposed to acturial risks associated with the current and former employees of other entities participating in the DBS. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102 and as such contributions are accounted for as if the scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions (see below). If, following an acturial valuation of the Life Risk Pool, there is a surplus or deficit in the pool and the Actuary so recommends, further transfers may be made from the Life Risk Pool to the employers' sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board on the advice of the Actuary.
A valuation of the DBS is carried out once every three years, the most recent having been carried out as at 31 December 2013. In this valuation, the Life Risk Section was shown to be in deficit by £4.9m and £4.3m was notionally transferred from the employers' sub-pools to the Life Risk Pool. This increased the Employer contributions that would otherwise have been payable. The overall deficit in the DBS was £12.9m.
Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund to pay a contribution rate of 25% of pensionable salary, and expenses of £4,000 per year. In addition deficit payments of £69,542 per year have been agreed for 1.83 years from 1 April 2015 in respect of the shortfall in the Employers sub-pool. This obligation has been recognised as a liability within the Employer's financial statements.
Annual Report Statutory Supplement and Audited Accounts - Page 43
24 24 Pension schemes (cont'd)
Section 28.11A of FRS102 requires agreed recovery payments to be recognised as a liability. The movement in the provision is set out below: 2016 2015 £000 £000 Balance Sheet liability at 1 April 150 218
Deficit contribution paid (71) (74) Interest cost (recognised in SoFA) 1 3 Remaining charge to the balance sheet liability*(recognised in SoFA) (19) 3
Balance Sheet liability at 31 March 61 150
* Comprises change in agreed deficit recovery plan and change in discount rate between year-ends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions, set by reference to the duration of the deficit recovery payments:
Mar-14 Mar-15 Mar-16 Discount rate 1.70% 1.10% 1.30%
25 25 Connected entities Individual members of the Chapter are involved with, and serve on all or some of the boards of The Winchester Cathedral Trust, The Carl Klein Trust, and the Friends of Winchester Cathedral. However, the Chapter does not have day to day control over any of these charities.
The Friends of Winchester Cathedral This association exists to assist the Chapter in maintaining, the fabric and monuments and the fittings and furnishings of the Cathedral and its associated ground-works within the precincts, excluding property used for residential or administrative purposes.
The Winchester Cathedral Trust The Charity’s objects are to raise funds and receive donations to apply to any charitable purpose connected with Winchester Cathedral. This includes the general upkeep of the Cathedral and the improvement and repair of all other buildings in the Cathedral Close, and the receipt distribution of funds raised to meet the costs of choristers.
The Carl Klein Trust The Charity’s objects are to provide financial assistance to lay clerks and prospective lay clerks of Winchester Cathedral who are in need or are suffering hardship
Annual Report Statutory Supplement and Audited Accounts - Page 44
25 Connected entities (cont'd)
The most recently published summarised results of these entities are as follows:- The The The Friends of Winchester Carl Klein Winchester Cathedral Trust Cathedral Trust 31-Mar-16 31-Mar-16 31-Mar-16 £000 £000 £000 Gross Income 205 1,154 -
Net incoming/(outgoing) resources for the year (24) (441) -
Net Movement in Funds (24) (441) -
Amounts paid or payable to the Cathedral 155 1,505 -
Gross Assets 677 1,778 545
Net Assets 430 1,773 545
The above accounts of The Winchester Cathedral Trust, The Carl Klein Trust and the Friends of Winchester Cathedral have been subject to an audit or independent examination under the Charities Act 2011. Only income receivable from the above connected entities has been included in the financial statements of the Chapter.
The Pilgrims' School (Limited by guarantee)
In addition to the above connected entities, the Chapter has the right to appoint Governors of The Pilgrims' School (Limited by Guarantee). However, the School's results have not been consolidated and no financial results for the year have been reproduced as the Chapter does not regard running the School as part of the ministry of the Cathedral and any financial surplus is not passed on to the Cathedral.
26 Related party transactions
During the year the Chapter received £1,505k (2015: £1,978k) from The Winchester Cathedral Trust. During the year the Chapter received £287k (2015: £355k) from The Friends of Winchester Cathedral in grants. During the year the Chapter received £134k (2015: £135k) from The Pilgrims' School (Limited by Guarantee) in respect of rent. During the year the Chapter paid £228k (2015: £226k) in respect of Choristers' school fees to The Pilgrims' School (Limited by Guarantee). During the year the Chapter paid £3k (2015: £3k) to Sophie Hacker, the wife of a Chapter member Canon Roland Riem, in respect of expenditure on arts and exhibitions
Annual Report Statutory Supplement and Audited Accounts - Page 45
27 Analysis of prior year total funds
Consolidated statement of financial activities
Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2015 2015 2015 2015 2015 £000 £000 £000 £000 £000
Incoming resources Voluntary income 400 - 209 - 609 Grants receivable 4 - 4,934 - 4,938 Charges and fees arising in the course of charitable activities 100 - - - 100 Income from activities generating funds 2,230 - - - 2,230 Income from property and investments 991 - - - 991 Total incoming resources 3,725 - 5,143 - 8,868 Cost of generating funds 1,655 - 13 - 1,668
Net incoming resources available for charitable activities 2,070 - 5,130 - 7,200
Resources expended on charitable activities Ministry 882 - 275 - 1,157 Cathedral and precincts upkeep 758 - 72 - 830 Education and outreach 177 - 55 - 232 Other expenditure on charitable activities 25 - 3,441 - 3,466
1,842 - 3,843 - 5,685
Governance costs 147 - - - 147
Net incoming resources 81 - 1,287 - 1,368
Other recognised gains Investment property - - 1,178 - 1,178 Investments 8 6 44 236 294
8 6 1,222 236 1,472
Net movement in funds 89 6 2,509 236 2,840 Fund balances brought forward 2,313 149 31,242 5,936 39,640
Fund balances carried forward 2,402 155 33,751 6,172 42,480
Annual Report Statutory Supplement and Audited Accounts - Page 46
27 Analysis of prior year total funds (continued)
Consolidated balance sheet
Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2015 2015 2015 2015 2015 £000 £000 £000 £000 £000
Fixed assets Investment assets Property 80 - 17,348 - 17,428 Investments 772 155 616 6,172 7,715
852 155 17,964 6,172 25,143
Non-investment assets Property 1,755 - 15,247 - 17,002 Plant & equipment 253 - - - 253
2,008 - 15,247 - 17,255
Total fixed assets 2,860 155 33,211 6,172 42,398
Current assets Stocks 142 - - - 142 Debtors 693 - 58 - 751 Cash at bank and in hand 690 - 914 - 1,604
1,525 - 972 - 2,497
Current liabilities (1,983) - (432) - (2,415)
Net current assets / (liabilities) (458) - 540 - 82
Total assets less total liabilities 2,402 155 33,751 6,172 42,480
Funds General fund 1,610 - - - 1,610 Property revaluation reserve 792 - 32,154 - 32,946 Music fund - - - 2,875 2,875 Other funds - 155 1,597 3,297 5,049 2,402 155 33,751 6,172 42,480
Annual Report Statutory Supplement and Audited Accounts - Page 47
27 Analysis of prior year total funds (continued)
Balance Sheet - Dean & Chapter only
Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2015 2015 2015 2015 2015 £000 £000 £000 £000 £000
Fixed assets Investment assets Property 80 - 17,348 - 17,428 Investments 782 155 616 6,172 7,725
862 155 17,964 6,172 25,153
Non-investment assets Property 385 - 15,557 - 15,942 Plant & equipment 38 - - - 38
423 - 15,557 - 15,980
Total fixed assets 1,285 155 33,521 6,172 41,133
Current assets Stocks 30 - - - 30 Debtors 1,030 - 58 - 1,088 Cash at bank and in hand 671 - 914 - 1,585
1,731 - 972 - 2,703
Current liabilities (1,898) - (432) - (2,330)
Net current assets / (liabilities) (167) - 540 - 373
Total assets less total liabilities 1,118 155 34,061 6,172 41,506
Funds General fund 801 - - - 801 Property revaluation reserve 317 - 32,464 - 32,781 Music fund - - - 2,875 2,875 Other funds - 155 1,597 3,297 5,049 1,118 155 34,061 6,172 41,506
Annual Report Statutory Supplement and Audited Accounts - Page 48
28 Transition to FRS 102 The Chapter has adopted FRS 102 for the year ended 31 March 2016 and has restated the comparative prior year amounts.
Explanations of the restated comparative prior year amounts are as follows:
1. Holiday pay Accrual The Chapter has recognised a holiday pay accrual as prescribed by FRS 102. The accrual recognised as a transitional adjustment in the prior year totals £25,000. This has resulted in a decrease in the opening reserves and an increase in accruals. 2. Defined benefit pension schemes As detailed in FRS 102 agreed recovery pension payments are to be recognised as a liability in the financial statement. This has resulted in an increase in the pension expense and increase in the pension creditor at 31 March 2015. 3. Investment property Properties owned by Chapter and leased to and used by Winchester Cathedral Enterprises Limited under FRS 102 are deemd to be investment properties rather than non-investment properties. The impact is an increase to investment properties of £920,000 and a decrease in non- investment properties of £920,000. Consolidated statement of financial activities FRS 102 as restated As previously at 31 stated at 31 Effect of March Explanation March 2015 transition 2015 £000 £000 £000 Total incoming resources 8,868 - 8,868 Cost of generating funds 2 1,679 (11) 1,668
Net incoming resources available for charitable activities 7,189 11 7,200
Resources expended on charitable activities 2 5,742 (57) 5,685 Governance costs 147 147
2 1,300 68 1,368 Other recognised gains Investment property 1,178 - 1,178 Investments 294 - 294
1,472 - 1,472 Net movement in funds 2 2,772 68 2,840
Fund balance brought forward 39,883 (243) 39,640
Fund balance carried forward 42,655 (175) 42,480
Annual Report Statutory Supplement and Audited Accounts - Page 49
28 Transition to FRS 102 (continued)
FRS 102 as FRS 102 as restated As previous restated As previous at 31 stated at 1 Effect of at 1 April stated at 31 Effect of March Explanation April 2014 transition 2014 March 2015 transition 2015 Fixed assets Investment assets 3 22,751 920 23,671 24,223 920 25,143 Non-investment assets 3 16,880 (920) 15,960 18,175 (920) 17,255 Current assets 1,024 - 1,024 2,497 - 2,497 Creditors: amounts falling due within one year 2 (772) (243) (1,015) (2,240) (175) (2,415) Net current assets / (liabilities) 2 252 (243) 9 257 (175) 82 Total assets less current liabilities 2 39,883 (243) 39,640 42,655 (175) 42,480
Net assets 39,883 (243) 39,640 42,655 (175) 42,480
Funds General fund 2 1,764 (243) 1,521 1,785 (175) 1,610 Property revaluation reserve 30,476 - 30,476 32,946 32,946 Music fund 2,763 - 2,763 2,875 2,875 Other funds 4,880 - 4,880 5,049 5,049
Total funds 39,883 (243) 39,640 42,655 (175) 42,480
Annual Report Statutory Supplement and Audited Accounts - Page 50