ANNUAL REPORT
STATUTORY SUPPLEMENT AND AUDITED ACCOUNTS
FOR THE YEAR ENDED 31 st MARCH 2011
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 2010/11
Contents 1.1.1. Aims and Objectives ...... 333 2.2.2. Chapter ReportsReports...... 444 2.1 The Dean ...... 4 2.2 Receiver General ...... 5 2.3 Worship – The Precentor ...... 6 2.4 Education and Spirituality – The Chancellor ...... 7 3.3.3. Legal and administrative information ...... 888 3.1 Legal name of the Cathedral ...... 8 3.2 Chapter Office ...... 8 3.3 Chapter ...... 8 3.4 Officers of the Foundation ...... 8 3.5 Council ...... 8 3.6 College of Canons ...... 9 3.7 Other key appointments ...... 10 3.8 Finance and Investment Advisory Committee ...... 10 3.9 Fabric Advisory Committee ...... 10 3.10 Auditors ...... 10 3.11 Bankers and other professional advisers ...... 10 3.12 Volunteer Section Heads ...... 11 4.4.4. Structure, governance and management ...... 121212 4.1 Governing Statute ...... 12 4.2 Relationship with the Diocese of Winchester ...... 12 4.3 Organisational structure – the corporate body ...... 12 4.4 Organisational structure – other key committees and groups ...... 12 4.5 Other organisations associated with the work of the Cathedral ...... 13 4.6 Chapter appointments and training ...... 13 4.7 Chapter responsibilities ...... 14 4.8 Clergy and senior staff changes ...... 14 4.9 Investment powers ...... 14 4.10 Public Benefit ...... 14 4.11 Risk ...... 14 555.5 Financial Review ...... 151515 5.1 Reserves Policy ...... 15 5.2 Investment Policy ...... 15 5.3 Investment performance ...... 15 5.4 Cathedral maintenance plan ...... 16 5.5 Five-year trends ...... 17 5.6 Commentary on the 2010/11 results ...... 17 6.6.6. Audited Accounts ...... 191919
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1.1.1. Aims and Objectives
Vision Our Vision is to discover and live out the beauty of holiness.
Mission Winchester Cathedral, 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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2.2.2. Chapter Reports
2.12.12.1 The Dean
When Jesus was being brought up in Nazareth a huge project was underway on the brow of a nearby hill to rebuild a city which boasted of the high culture of the Roman Empire. It was called Sepphoris. At Sepphoris there is a stunning mosaic, often called ‘The Mona Lisa of the Galilee’. A beautiful female face still looks out enigmatically at those who visit. It is created from a mass of individual mosaic pieces.
That in many ways is a parable of the Cathedral. It is Chapter’s job to seek to enable a stunning unity to emerge from a mass of individual pieces.
Our goal is to create a seamless unity, a portrait which can be readily identified as ‘the beauty of holiness’, from a complex community of 107 employees, 700 volunteers, regular and occasional worshipers and a galaxy of stakeholders represented by formal committees and informal allegiances from right across the community.
Chapter has endeavoured to work towards the ‘stunning unity’ by having clear vision, mission and purposes as well as a Strategic Plan. The Strategic Plan seeks to encompass the total work of the Cathedral including its worship, its development, its structure of staff and volunteers and the crucial need for sound financial management. It has been the goal of the Dean and Chapter, and within that the Receiver General responsible for the practical management of the Cathedral’s affairs, to make sure that awareness of the big picture finds its way through the whole organisation.
This will always be a work in progress, but I hope this Report is evidence of our moving in the right direction. Musicians, Refectory Staff, Stone Masons, Conveners of the Advisory and Action Groups, Winchester Cathedral Trust, none of us are doing our own tiny mosaic in a corner but are due to be signed up to the single portrait.
If the single portrait, to re-present our mission statement, is to do with ‘something beautiful for God’, then that exacting standard needs to be before each one of us all of the time. Christ’s example always remains the engine of our ambition. Things that make for isolated or disconnected goals are unworthy; we are called to do in each small area what enhances the whole. Two ingredients will move us towards our vision. They are excellence and accessibility. We have to work, if we are to be Winchester Cathedral, for exemplary standards in everything; only the best with suffice! That would be easy if we could simply ring fence and protect excellence from robust engagement. However, our God-given vision of generosity and hospitality means that we have always to maintain excellence with the door unlocked and with the embrace of love evident as the threshold is crossed by whoever it may be and of whatever faith or age. That is a standard by which you may judge this Annual Report. I hope that when you have read it you will sense emerging that stunning unity at the service of the beauty of holiness which is Winchester Cathedral.
The Very Revd James Atwell, Dean of Winchester
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2.22.22.2 Receiver General
Looking back over the past year since our last Annual Report, much has been achieved in spite of the numerous challenges we have faced.
We have improved our FY2010/11 budgeted position of £46k deficit to achieve a surplus of £14k. We have achieved this significant milestone for the Foundation, without being dependent on legacy income to meet annual operating expenses. Although the current economic climate remains testing (we have already faced an increase in our annual gas bill of some £25,000), we have been able to build on last year’s success and set a balanced budget for FY 2011/12.
We have completed the upgrade of our Sage financial accounting system and will be now be able to use our Sage system for all of our accounting activities. We are now operating the purchase order processing within the Sage system. This is now being rolled out to all departments and we are looking forward to a more visible and more detailed control of our expenditures. This will be improved with the introduction this year of a new business intelligence system which will provide more timely and more accurate reporting to all budget holders and to the financial management team. We have amalgamated the Box Office and Entrance Desk systems and created an interface into our Sage system of record. The Quantum EPOS system in operation in our Catering and Retail operations has also been upgraded and incorporated into our Sage system.
Good communication is the very life-blood of any effective organisation and especially important for our Foundation. There was a palpable sense of excitement and achievement when Charlie and the team pressed the “go-live” button on our new website, the culmination of 14 months’ work. The website is dynamic and we will be refining and adding to it over the next few months. We have also launched our new logo and we have started incorporating it into all of our various publications and signage. The ‘W’ was inspired by our 12 th Century Winchester Bible; my thanks go to Phillip Johnson and the team of scribes who assisted and provided inspiration in its creation.
I mentioned in last year’s report our achievements in developing income from our properties. I am pleased to report that all of our properties have now been let, and that we look forward to a sustainable income stream from them.
The outstanding achievement this year must be the completion of the Fleury Building on the 20 th December 2010 followed by its official opening on 5 th March. I am particularly pleased to report that the building was completed on time and to budget. The only sadness was that our Cathedral Architect Peter Bird and Mary Hunt were not there to witness the Abbot of Fleury open the new building. The Fleury Building is a wonderful example of the generosity of the Friends; the largest single donation they have made in the past 80 years. It demonstrates how much can be achieved when we all work together.
We continue to invest in our people, our most important resource. We have introduced a Personal Development Review (PDR) process which allows our people to make the most of their talents and to grow and develop within a positive employment environment. We have also developed our apprenticeship scheme to include an apprentice gardener, John Short and carpenter, Chris Gibbs.
For a second year we have had to battle against the snow at Christmas, having to close the Market for the first time because of the extreme weather. We did manage nevertheless to make a net profit of some £193,000 from the market and ice rink, an on-going and important contribution to our annual operating costs.
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Looking ahead we are in the process of recruiting a new Cathedral Architect who will be making an important contribution to our Quinquennial Review. We will be moving on to the next stage of our Cathedral Plan, continuing to build for the future while preserving our historic past. There are a number of planned projects which will be referred to throughout this report.
I share these successes and aspirations with you all, for it is all of us, through our individual and joint efforts, that have made and will continue to make it all possible.
Annabelle Boyes Receiver General and Canon Treasurer
2.32.32.3 Worship ––– Canon Precentor
This last year has proved to be fuller than most. With more weddings and other special services than ever before it is good to know the Cathedral is increasingly becoming a centre for all kind of groups and activities. Yet we always need a watchful eye that we safeguard its sense of holiness and prayer. Both musicians and virgers have given their time and dedication unstintingly, offering both glorious music day by day and high standards of liturgy. People have remained constant over a stable year but significant changes await us in the near future.
The Choir has been involved in the creation of several new CDs, including a highly popular disc of Christmas Music. The Girls’ Choir gave a popular tour to Stavanger back in September and the Lay Clerks and Choristers had a most uplifting trip to Prague. More locally, they have sung at local parishes in the Diocese and received generous hospitality. We have been well used by the BBC in recent months both with a live broadcast of the Eucharist on Easter Day 2010 and a splendid recording of Christmas music and poetry which was seen on Christmas Day evening. Two recording of ‘Songs of Praise’ were also appreciated from all over the world.
Despite the lack of Government funding, the “Sing Up” project continues apace. Cooperation between the staff of Pilgrims’ School, our own musicians including the Choristers, and the County Music Staff has proved very positive. Work in the local schools results in the climax of a concert in the Cathedral and a memorable time for pupils, staff and families. We very much hope to maintain this project and it greatly increases the children’s appreciation and enjoyment of music in a special place.
Last year’s challenge to the musicians to help raise funds for the musical life of the Cathedral has had a positive effect on Choir and congregation alike. With a rich variety of fund raising activities at various levels, it has helped many people feel more engaged with this vital part of Cathedral life. It remains an annual commitment.
Although numbers of stipendiary clergy at the Cathedral remains low, we have welcomed several new priests willing to assist and preach which has been most welcome. It has made the creation of rotas far more complex, but it is a problem I welcome.
Few people realise how time consuming and complicated arranging special services in particular remains, so that things can run smoothly on the day itself. I pay enormous tribute the staff of the Liturgy and Music Department for their unfailing kindness and dedication. Along with them, the very many other people who give of their time, faithfully and seeking no reward except that of knowing that glory is given to God. Servers, sidesmen, concert stewards, the flower team and bell ringers, all are appreciated and we owe a huge vote of thanks to them. Their major contribution makes the Cathedral seem a place which is focused and blessed.
Canon Michael St.John-Channell, Precentor and Sacrist.
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2.4 Education and Spirituality ––– Canon Chancellor
Education is a vital element of our mission. We are always looking for ways to improve what we offer without presuming on the goodwill of our volunteers. This year, therefore, our Children’s Education Officer, Cheryl Bryan, changed the format of our Schools’ Day services: the workshop element was run mostly by the visiting teachers themselves, using the instructions provided, rather than by our volunteers. This allows us to move all four Schools’ Days into the summer term, so that they can be treated as leavers’ services, as the schools prefer.
We have been thinking of how to help student teachers use the Cathedral and its history, both in the classroom and out-of-class activities. In September the whole new intake of student teachers at the University of Winchester were given a brief induction into the sort of workshop that could be given in the church and then invited to stay for Evensong, which the majority did.
The adult education programme held two popular but contrasting series. One was on the work of the Holy Spirit, including a talk from our Canon Theologian Vernon White. The other was on Faith in Society, a probing exploration on the relationship of Church and State and the more general issue of who decides on public values. The Cathedral Fellowship programme continued and the irony of the talk on failure being hugely successful is worth repeating!
The Pastoral Team (plus Visitors’ Chaplains) has been learning too. They have heard how vital pastoral care is, and how it is exercised in diverse situations. Speakers have included Mrs Lou Scott-Joynt and chaplains from the army, hospital and university.
We were delighted to welcome Indarjit Singh as the speaker at what is to be the first interfaith lecture in the Cathedral. Dr Singh, well known as a contributor to Radio 4’s Thought for the Day , gave a characteristically vivid talk from the Sikh tradition. His observation that interfaith dialogue usually stopped at sharing polite cups of tea was met by us sharing a hospitable silence together. This was led by our own Wanda Nash and leaders of the Muslim and Jewish communities. The Bishop of Winchester attended and gave a closing blessing.
October saw the opening of the Diocesan Resources Room in the Education Centre. William Cole became its first manager, who is well known in Winchester through his previous association with SPCK. Mondays and Fridays are the usual days of business, but William is building a team of volunteers to extend opening hours. Some of the most popular items to borrow are the Godly Play kits used to tell Bible stories, but there are also audiovisual resources, as well as a wide selection of books.
We welcomed Gill Rushton as our new point of contact with the Hampshire Record Office, who provide our archival services. Gill is effectively our Cathedral Archivist, taking over from Caroline Edwards (now County Archivist). Gill has brought great commitment to that role and has been working hard on our online archival catalogue.
Two other highlights of the year were the exhibition of the National Society of Portrait Sculptors, which resulted in a clamour for at least two of the pieces to be bought for the Cathedral. The guided tours of the work were much appreciated. The other event was the Education Sunday Eucharist, which featured All Saints Winchester, Highfield Southampton and the Bishop of Winchester Academy Bournemouth. The Revd Jan Ainsworth, the Church of England’s Chief Education Officer, preached on the occasion of the 200 th anniversary of the National Society for Promoting Religious Education.
Canon Roland Riem, Chancellor & Pastor
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3.3.3. Legal 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 st March 2011 were as follows:
Dean: The Very Revd James Atwell Canon Chancellor & Pastor: The Revd Canon Dr Roland Riem Canon Precentor & Sacrist: The Revd Canon Michael St-John Channell Receiver General & Canon Treasurer Mrs Annabelle Boyes Canon Missioner The Revd Canon Stephen Pittis (until October 2010) Lay Canon Prof the Rt Hon Lord Plant of Highfield Lay Canon Mr John Pringle (until February 2011) Lay Canon Dr Helen Harvey (from February 2011)
3.43.43.4 Officers of the Foundation High Steward: The Rt Hon Lord Ashburton Counsellor: His Honour Judge Michael Brodrick
3.53.53.5 Council Members of the Cathedral Council during the year to 31 st March 2011 were as follows: Sir Leonard Appleyard (Chairman) (Bishop’s appointment) (until March 2011) Miss Jean Ritchie QC (Chairman) (Bishop’s appointment) (from March 2011) Mrs Susan Armstrong (Bishop’s appointment) (until November 2010) The Very Revd James Atwell (ex officio) Mr Michael Honeysett (elected by Cathedral community) Mr Alan Lovell (Bishop’s appointment) The Revd Dr Howard Mellor (Bishop’s appointment) Mrs Annabelle Boyes (from 1st September) (Chapter appointment) Mr Charles Parker (Bishop’s appointment) (until March 2011) The Revd Canon Dr Roland Riem (Chapter appointment) The Revd Canon Ian Tomlinson (appointed by College of Canons) The Revd Canon Peter Doores (appointed by College of Canons) The Revd Ann Keating (from March 2011) (Bishop’s appointment) Surgeon Vice Admiral Anthony Revell (from March 2011) (elected by Cathedral community) Visitor: The Rt Revd Michael Scott-Joynt, Lord Bishop of Winchester
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3.63.63.6 College of Canons
The Chapter of Winchester The Dean of Winchester , The Very Revd James Atwell Canon Chancellor, The Revd Canon Dr Roly Riem Canon Precentor, The Revd Canon Michael St.John-Channell Mrs Annabelle Boyes, Receiver General and Lay Canon The Lord Plant of Highfield, Lay Canon Mr. John Pringle, Lay Canon (until 23 Feb 2011) Dr Helen Harvey (from 13 March 2011)
Bishop’s Staff The Bishop of Basingstoke, The Rt Revd Peter Hancock The Bishop of Southampton, The Rt Revd Jonathan Frost The Archdeacon of Winchester, The Venerable Michael Harley The Dean of Guernsey, The Very Revd Paul Mellor The Dean of Jersey, The Very Revd Bob Key
Canon Theologian The Revd Canon Vernon White (2006)
Honorary Canons The Revd Canon Bruce Kington (2002 Retired Dec 2010) The Revd Canon Martin Coppen (2004) The Revd Canon Ian Tomlinson (2004) The Revd Canon Clive Hawkins (2005) The Revd Canon Kenneth Batt (2007) The Revd Canon Simon Baker (2008) The Revd Canon Jo Stoker (2008) The Revd Canon Peter Doores (2009) The Revd Canon John Harkin (2009) The Revd Canon Gary Philbrick (2009) The Revd Canon Jackie Browning (2009) The Revd Canon Jill Bentall (2011) The Revd Canon Geoff Houghton (2011) The Revd Canon Richard Lowndes (2011) The Revd Canon David Snuggs (2011) The Revd Canon Dr Brian Rees (2011) The Revd Canon Norman Boakes (2011) The Revd Canon Andrew Sharp (2011) The Revd Canon Graham Archer (2011)
Ecumenical Canons The Abbot of Fleury (2011)
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3.73.73.7 Other key appointments
Receiver General Mrs Annabelle Boyes Cdir FloD FLCM
Cathedral Architect Mr Peter Bird BSc (Hons) DipArch FSA RIBA (until Dec. 2010) Caroe & Partners Penniless Porch, Market Place Wells BA5 2RB
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
Sir James Butler (Chairman) The Rt Hon Lord Ashburton The Very Revd James Atwell – The Dean (Chapter) Mr Clive Fenn-Smith Mr Nigel Atkinson, Vice Lord Lieutenant of Hampshire Mrs Annabelle Boyes - Receiver General ( Chapter) Mr John Pringle The Revd Canon Michael St John-Channell - Canon Precentor (Chapter) The Revd Canon Dr Roland Riem (from March 2011) – Canon Chancellor (Chapter)
3.93.93.9 Fabric Advisory Committee
General Sir Hugh Beach GBE KCB MC (Chairman) The Revd Canon Mark Bonney Mr Christopher Gordon Mr Michael Morris Mr John Spokes QC Dr Barbara Yorke The Very Revd James Atwell - The Dean (in attendance) Mr Carlton Bath (in attendance) Mr Jonathan Saunders (in attendance) Dr John Crook (in attendance) Mrs Annabelle Boyes – Receiver General (Secretary) Mrs Sue Hancock (Minute secretary)
3.103.103.10 Auditors
Grant Thornton UK LLP 1 Dorset Street Southampton SO15 2DP
3.113.113.11 Bankers and other professional advisers
Bankers National Westminster Bank plc High Street Winchester SO23 9AW
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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 Staple Chambers, Staple Gardens Winchester SO23 8SR
Quantity Surveyor Mr David Bailey Davis Langdon Brunswick House Brunswick Place Southampton SO15 2AP
Solicitors Godwins 12 St Thomas Street Winchester SO23 9HF
Stockbrokers & Investment Managers Cazenove Capital Management Ltd 12 Moorgate London EC2R 6DA
Investment Managers CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ
3.123.123.12 Volunteer Section Heads Brother Charles Acland, Triforium Gallery Mrs Gillian Allen, Litter Pickers Mrs Stephanie Woodcock, Tower Tour Guides Mrs Andrea Hall, Wardrobe Team Mrs Helen McGarry and Mr Andrew Crowther-Walker, Flower Arrangers Mrs Margaret Braddock, Holy Dusters / Brass Band Mr Ralph Jessop, Guides Mrs Brenda Fletcher, Information Desk Mr Paul Isted, Programme Sellers Mr Arnold Jarman, Lunchtime Recitals Mr Phillip Johnson, Calligraphers Mr Charles Woodhead, Hospitality Team Mr George Medd, Bell Ringers Ms Suzie McHeyzer, Cash Counters Mrs Anne Newsome, South Transept Co-ordinator Mr Paul Wing, Head Sidesman Miss Joanna Pope, Welcoming Stewards Mr Richard Price, Servers Mrs Robin Anderton, Events Stewards Mr Reg Stevenson, Volunteer Co-ordinator Mrs Lin Squires, Parish Co-ordinators Mrs Valerie Woodward, Visitors Chaplains Mr Roger Turner & Mrs Lorna Atwell, Deanery Books
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4.4.4. Structure, governance and management
4.14.14.1 Governing Statute The Cathedral is governed by the Cathedrals Measure 1999, and the Constitution and Statutes that came into effect on 19 April 2000 as amended on 17 February 2009.
4.24.24.2 Relationship with the Diocese of Winchester The Diocesan Bishop is The Right Reverend Michael Scott-Joynt.
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, serving on the Bishop's Staff and many Diocesan committees and working groups.
4.34.34.3 Organisational structure ––– the corporate body 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, 2 Residentiary Canons, the Receiver General & Canon Treasurer and 2 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 and vision.
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.
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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 also 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 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 one is a Chapter member) 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), 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.
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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 The Revd Canon Stephen Pittis left Chapter in October 2010 and John Pringle in February 2011. Dr Helen Harvey joined Chapter in February 2011.
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 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. Work is also currently underway to develop a risk register for each individual department.
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5.5.5. Financial Review
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. It also provides a buffer in the event of long-term planning or restructuring. The General Fund stood at £1.62m at 31 st March 2011, which covers just over five months of ordinary activity.
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.
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.
A medium to low risk profile is taken on equities and performance is measured against a composite benchmark index constructed by Cazenoves based on the agreed proportion of the component elements of the portfolio. The current benchmark index was agreed in December 2007.
The investment objectives given to our principal fund managers, Cazenoves, 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 UK government and other fixed interest securities to provide a high and secure level of income and through UK equities to protect the capital value. Any overseas investment should be invested via appropriate pooled funds.
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 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, and for the smaller proportion of its portfolio, the policies operated by CCLA. Responsibility for the management of this policy rests with the Chapter, but authority to conduct stock transactions on a day-today basis under this policy is delegated to the Cathedral’s Investment Managers.
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 in 2009/10.
£’000 Rental income 523.8 Professional services (8.6) Repairs (21.5) Other costs (70.7) Net income 423.0 Statutory Supplement and Annual Accounts 2010/11 - Page 15
Yield on investment properties £’000
Capital value investment property 13,622 Net income yield 3.1% CBF Property Fund income yield 7.1%
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 however Chapter policy through the Close Plan to address some of these issues. As a result of this and the policy to increase property and rental opportunities, rents have increased significantly over the year – from £405.3k in 2009/10 to £523.8k 2010/11.
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 229.9 35.9 14.8 280.6 CCLA 13.5 - 31.6 45.1
243.4 35.9 46.4 325.7
Gains/(losses) on revaluations/disposals 254.3 Management fees (39.3)
Total return on other investments 540.7
Return on other investments £’000
Market value of other investments 6,597.7 Return 8.2% Composite index agreed with Cazenove 7.4%
For the year to 31st March 2011 the investments rose by 8.2% compared to the agreed composite benchmark return of 7.4%. The UK equity market rose by 8.7% and UK gilts by 5.2%. The headline numbers disguise a volatile period but generally most assets produced positive returns following a second round of quantitative easing by the US in the autumn. The global economic recovery was subdued with the western world still deleveraging from pre-crisis excesses and experiencing lower growth than economies with low levels of debt. Some extraordinary and fast moving events at the start of 2011 highlighted the fragility of the market. The portfolio(s) have focused on income as an important component of total returns during this period, and have remained fully invested throughout the period. At 31 st March 2011 our total investments excluding direct property holdings totalled £6.60m, of which 68% were held in listed equity funds, 8% in fixed interest, 12% in hedge funds, 2% in cash and 10% in other funds.
5.45.45.4 Cathedral maintenance plan A 10 year draft conservation plan has been drawn up covering major projects and conservation works and this is being reviewed and updated. This will be supported by a 10 year general Statutory Supplement and Annual Accounts 2010/11 - Page 16
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.
5.55.55.5 FiveFive- ---yearyear trends Set out below are key financial indicators over the last five years:
2006/07 2007/08 2008/09 2009/10 2010/11 £000 £000 £000 £000 £000 Total income 3,876 4,032 3,732 4,129 4,799 WCEL covenant to Chapter 92 153 206 253 253 Other visitor income 387 402 383 449 501 Rental income 385 430 382 405 524 Investment income 289 341 268 272 326 Cathedral repairs/upkeep 777 741 881 812 1,43 5 Other expenditure on mission 1,020 1,245 1,109 1,296 1,30 4 General Fund result (before capital gains) 8 197 (116) (7) 14
5.65.65.6 Commentary on the 2010/11 results In previous Annual Reports we have seen the formulation, development and implementation of a strategic plan that sets out targets and strong actions to take Winchester Cathedral where it needs to be in order to face up to the challenges of the future. The financial results for the year to March 2011 presented here show the effect those decisions and actions are having as we progress through this exciting and challenging time of transition.
In the background there has been a less than favourable economic climate. Although the intense instability of 2009 is behind us, the effects of the recession, the painfully slow recovery and the continuation of record low interest rates and illusive credit have refused to go away during the period. The Cathedral has not been immune to these factors, which have had their impact on some of our commercial activities in particular, but despite all this we believe that the financial results can demonstrate that the structural changes we have put in place in the last two years are bearing fruit.
The main indicator is the General Fund result before capital gains. The General Fund is an unrestricted fund into which the income from our ordinary activities goes and from which we pay for our general running costs. The chart in 5.5 shows that this result has improved from a deficit of £116k in 2008/09 to a small surplus of £14k in 2010/11. This is a strong indication that despite recessionary pressures the Cathedral is now again able to cover its costs, and that the changes and investments we have made, hand in hand with firm cost control, are taking us in the right direction.
Total income is up £670k from £4,129k in 2009/10 to £4,799k in 2010/11, an increase of 16%. The largest area of activity that contributed to this rise was in Voluntary Income . A significant proportion of the increase in that area is attributable to the massive support given to the Cathedral by the Friends of Winchester Cathedral by funding the completion of the Fleury Building, and the provision of CCTV in the Cathedral. Grants from the Friends totalled £690k during the year. Although legacies and donations fell from £45k to £19k and from £353k to £296k respectively, this was offset by an increase of £58k in income from appeals and fundraising, which included the proceeds of 2 major fund-raising concerts (£42k) and the proceeds from the Deanery Porch booksale (£52k). It is encouraging that congregational collections rose by £18k from £58k in 2009/10 to £76k in 2010/11 and that Gift Aid tax recovered rose by £12k.
Statutory Supplement and Annual Accounts 2010/11 - Page 17
To increase income from property investments has been a key objective in the Strategic Plan. It is therefore highly significant that rents have risen 29% over the year from £405k to £524, due to the completion of the conversion of No. 1 the Close from office to residential use. It is also significant because it is a regular and sustainable source of income now and in the future.
Income from investments has also risen 20% from £272k to £326k, reflecting the more stable market conditions and a realignment of our investments.
Excluding income from our trading activities, it was also encouraging to see that visitor income rose during the year. Charges to visitors, which includes entrance fees tours and educational visits, rose 11% from £449k to £501k. Paying visitors to the Cathedral increased from 103,000 in 2009/10 to 110,000 in 2010/11.
The performance of Winchester Cathedral Enterprises Ltd (WCEL), the trading arm of the Cathedral was somewhat mixed. Compared with 2009/10, total sales fell slightly, by less than 1%. However with new lines of merchandise being introduced, the Gift Shop’s performance improved significantly, with turnover increasing by 17% and net profit increasing by £58k. Catering results however were down compared with last year. Sales were down 1%, but a fall in the gross profit percentage resulted in a reduction in net profit from £76k (2009/10) to £52k (2010/11). Extreme weather conditions in December had a severe effect on catering sales at the Christmas Market. Despite this, WCEL was still able to gift-aid a significant contribution of £253k to the Cathedral at the end of 2010/11.
Of other sources of income , grant income increased during the year from £139k to £155k. The increase was largely due to a grant of £13k from the Listed Places of Worship Scheme. Facility fees, which include Cathedral hire, royalties, choir charges and specialised events, reduced from £151k in 2009/10 to £126k in 2010/11.
Operating expenditure was controlled well during the year and was within budget, with nearly all departments spending within their budget limits. This was another factor that enabled the Cathedral to end the year with an improved result compared with budget. 2010/11 was also a year in which there was considerable achievement in completing some milestone strategic major projects. The first major new building attached to the Cathedral for centuries was completed with the opening of the Fleury Building (£640k in 2010/11). As mentioned before, this would not have been made possible without the generosity of the Friends. We have also mentioned the importance to the Cathedral’s sustainable future of the completion of the refurbishments and alterations to No. 1 The Close (£114k in 2010/11). Another completed project was the installation of CCTV in the Cathedral (£26k). Looking to the future, £24k was spent in the development of plans for a proposed Education building.
All types of fund were able to benefit from improvements in the capital value of investments. Accordingly, endowment funds increased by £182k from £4,968k to £5,150k. Funds that can be used for restricted purposes increased by £60k, of which £18k came from net gifts and £42k from capital gains. Unrestricted reserves saw an increase from £2,209k to £2,254 owing the annual surplus of £14k and investment gains of £31k.
In summary , despite a background of sluggish economic conditions, 2010/11 was a milestone year for the Cathedral, one in which can be seen the positive results of the important strategic decisions taken by the Cathedral in the last two years. The work to refine and implement that plan continues, with the 2010/11 accounts reflecting some of those development costs. Looking ahead to 2011/12 and beyond, with the help of its friends and supporters, the Cathedral is ready to meet the challenges – major repairs to the Cathedral roof, step changes in learning and interpretation and further initiatives to strengthen the organisation’s sustainable income base. We recognise that success in the Cathedral’s mission and financial stability go hand in hand. We are intent to progress into the future on both fronts together.
Statutory Supplement and Annual Accounts 2010/11 - Page 18
6.6.6. Audited Accounts
AUDITED ACCOUNTS 31st March 2011
The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester
Statutory Supplement and Annual Accounts 2010/11 - Page 19
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.
Statutory Supplement and Annual Accounts 2010/11 - Page 20
InInIndependentIn dependent auditorauditor's's report to the membemembersrs of Chapter of Winchester Cathedral
We have audited the financial statements of Winchester Cathedral for the year ended 31 March 2011 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. These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the Chapter, as a body, in accordance with the regulations made under the Charities Act 1993. 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 Chapter as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of the Chapter and auditors As described in the Statement of the Chapter's Responsibilities, the Chapter is responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the regulations specified by the Church Commissioners under the powers given to them by Section 27 of the Cathedrals Measure 1999. We read the Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.
Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Chapter in the preparation of the financial statements, and of whether the accounting policies are appropriate to its circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion In our opinion: the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of affairs of the Cathedral as at 31 March 2011, and of its incoming resources and application of resources for the year then ended; and the financial statements have been properly prepared in accordance with the regulations specified by the Church Commissioners under the powers given to them by Section 27 of the Cathedrals Measure 1999.
Grant Thornton UK LLP Registered Auditors - Southampton 16 August 2011
Statutory Supplement and Annual Accounts 2010/11 - Page 21
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 November 2006 by the Cathedrals Administration and Finance Association. They have been prepared under the historical cost convention except that property and investments are included at a valuation.
The principal accounting policies have remained unchanged from the previous period and are set out below.
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.
Funds
The Cathedral's permanent endowment funds are set out in note 15 to the financial statements. They include the Endowment, Music and Staff Pension Fund investments of the former 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, 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.
Statutory Supplement and Annual Accounts 2010/11 - Page 22
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.
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 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 -50% 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.
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.
Statutory Supplement and Annual Accounts 2010/11 - Page 23
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.
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.
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 S13(1) of the Care of Cathedrals Measure 1990.
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.
Statutory Supplement and Annual Accounts 2010/11 - Page 24
Consolidated statement of financial activities
Unrestricted Restricted Endowment Total Total funds funds funds funds funds Note 2011 2011 2011 2011 2010 £ £ £ £ £ Incoming resources 1 Voluntary income 439,151 956,901 - 1,396,052 930,918 Grants receivable 13,159 142,227 - 155,386 139,188 Charges and fees arising in the course of mission 126,233 - - 126,233 150,632 Income from activities generating funds 2,271,251 - - 2,271,251 2,230,831 Income from property and investments 849,241 - 298 849,539 677,119 Other incoming resources 861 - - 861 699 ------Total incoming resources 3,699,896 1,099,128 298 4,799,322 4,129,387 Cost of generating funds 3,5 1,895,647 - - 1,895,647 1,866,182 ------Net incoming resources available for mission 1,804,249 1,099,128 298 2,903,675 2,263,205 ------Expenditure on mission 4 Ministry 810,754 239,974 - 1,050,728 998,564 Cathedral and precincts upkeep 629,690 805,810 - 1,435,500 812,477 Education and outreach 179,502 35,160 - 214,662 191,258 Other expenditure on mission 38,128 - - 38,128 105,704 ------1,658,074 1,080,944 - 2,739,018 2,108,003 ------Governance costs 6 132,139 - - 132,139 119,323 ------Total expenditure on generating funds, mission and governance 5 3,685,860 1,080,944 - 4,766,804 4,093,508 ------Net incoming resources 14,036 18,184 298 32,518 35,879
Other recognised gains Non-investment property - - - - 718,377 Investment property - - - - 2,884,405 Investments 30,873 41,735 181,666 254,274 1,244,351 ------30,873 41,735 181,666 254,274 4,847,133 ------
Net movement in funds 44,909 59,919 181,964 286,792 4,883,012 Fund balances brought forward 2,209,142 24,886,543 4,968,450 32,064,135 27,181,123 ------Fund balances carried forward 2,254,051 24,946,462 5,150,414 32,350,927 32,064,135 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 25
Consolidated balance sheet
Unrestricted Restricted Endowment Total Total funds funds funds funds funds Note 2011 2011 2011 2011 2010 £ £ £ £ £ Fixed assets Investment assets Property 9 86,000 13,535,767 - 13,621,767 13,507,625 Investments 10 729 ,78 2 717,483 5,150,427 6,597,692 6,342,901 ------815,782 14,253,250 5,150,427 20,219,459 19,850,526 ------
Non-investment assets Property 11 1,585,250 10,500,848 - 12,086,098 12,102,125 Cathedral inventory and equipment 12 117,203 - - 117,203 99,942 ------1,702,453 10,500,848 - 12,203,301 12,202,067 ------Total fixed assets 2, 518 ,23 5 24,754,098 5,150,427 32,422,760 32,052,593 ------Current assets Stocks 115,260 - - 115,260 119,159 Debtors 13 133,130 192,364 - 325,494 250,031 Cash at bank and in hand 74,626 - - 74,626 77,712 ------323,016 192,364 - 515,380 446,902 Current liabilities 14 (587,200) - (13) (587,213) (435,360) ------Net current assets / (liabilities) (264,184) 192,364 (13) (71,833) 11,542
------Total assets less total liabilities 2,254,051 24,946,462 5,150,414 32,350,927 32,064,135 ======
Funds General fund 17 1, 619 ,816 - - 1, 619 ,816 1,427,939 Property revaluation reserve 16, 17 634,235 23,587,607 - 24,221,842 24,238,259 Music fund 15 - - 2,390,387 2,390,387 2,300,430 Other funds 15, 16 - 1,358,855 2,760,027 4,118,882 4,097,507 ------2,254,051 24,946,462 5,150,414 32,350,927 32,064,135 ======
The financial statements were approved by the Chapter at their meeting on 19 July 2011 and are signed on their behalf by:
The Very Reverend J Atwell - Dean
Mrs Annabelle Boyes CDir, FIOD - Receiver General
Balance Sheet --- Dean & Chapter only
Unrestricted Restricted Endowment Total Total funds funds funds funds funds Note 2011 2011 2011 2011 2010 £ £ £ £ £
Fixed assets
Investment assets Property 9 86,000 13,535,767 - 13,621,767 13,507,625
Investments 10 739 ,782 717,483 5,150,427 6,607,692 6,352,901 ------825 ,782 14,253,250 5,150,427 20,229,459 19,860,526 ------Non-investment assets Property 11 220,000 10,715,848 - 10,935,848 10,951,875 Cathedral inventory and equipment 12 19,535 - - 19,535 33,252 ------239,535 10,715,848 - 10,955,383 10,985,127 ------Total fixed assets 1,065,317 24,969,098 5,150,427 31,184,842 30,845,653 ------
Current assets Debtors 13 341,331 192,364 - 533,695 446,018 Cash at bank and in hand 9,609 - - 9,609 37,811 ------350,940 192,364 - 543 ,304 483,829 Current liabilities 14 (446,159) - (13) (446,172) (334,300) ------Net current assets / (liabilities) (95,219) 192,364 (13) 97,132 149,529 ------Total assets less current liabilities 970,098 25,161,462 5,150,414 31,281,974 30,995,182 ======
Funds General fund 17 811 ,066 - - 811,066 619,189 Property revaluation reserve 16, 17 159,032 23,802,607 - 23,961,639 23,978,056 Music fund 15 - - 2,390,387 2,390,387 2,300,430 Other funds 15, 16 - 1,358,855 2,760,027 4,118,882 4,097,507 ------970,098 25,161,462 5,150,414 31,281,974 30,995,182 ======
The financial statements were approved by the Chapter at their meeting on 19 July 2011 and are signed on their behalf by:
The Very Reverend J Atwell - Dean
Mrs Annabelle Boyes CDir, FIOD - Receiver General
Consolidated cash flow statement
Note 2011 2011 2010 2010 £ £ £ £
Net cash outflow from operating activities 18 (680,161) (510,931)
Returns on investments Rents received net of costs 523,799 405,255 Interest and dividends received 286,474 240,375 ------810,273 645,630 Capital expenditure and financial investment Sale proceeds of investments less amounts reinvested (58,524) (58,039) Purchases of furniture and equipment (176,373) (210,594) ------(234,897) (268,633) ------Cash outflow before management of liquid resources and financing (104,785) (133,934)
Management of liquid resources Net (increase)/decrease in liquid resources 19 (175) 76,367
Financing Finance house loan - (31,221) ------(31,221) ------(Decrease) in cash 19 (104,960) (88,788) ======
Statutory Supplement and Annual Accounts 2010/11 - Page 28
Notes to the financial statements
1 Consolidated Incoming resources
Unrestricted Restricted Endowment Total Total funds funds funds funds funds 2011 2011 2011 2011 2010 £ £ £ £ £
Voluntary income Congregational collections and giving 46,629 29,116 - 75,745 58,205 Donations 226,793 69,598 - 296,391 352,969 Income from appeals and fund raising 78,206 52,108 - 130,314 72,236 Tax recoverable under Gift Aid 49,756 - - 49,756 38,468 Income from Friends and local trusts 18,690 806,079 - 824,769 363,904 Legacies 19,077 - - 19,077 45,136 ------439,151 956,901 - 1,396,052 930,918 ------
Grants receivable Church Commissioners - 115,520 - 115,520 112,717 Other revenue and capital grants 13,159 26,707 - 39,866 26,471 ------13,159 142,227 - 155,386 139,188 ------Charges and fees arising in the course of mission Facility and other fees 126,233 - - 126,233 150,632 ------
Income from activities generating funds Charges to visitors 500,607 - - 500,607 449,263 Gross income of shop, refectory and other trading activities 1,767,879 - - 1,767,879 1,778,644 Other external charges 2,765 - - 2,765 2,924 ------2,271,251 - - 2,271,251 2,230,831 ------Income from property and investments Income from investment property 523,799 - - 523,799 405,255 Income from other investments 325,442 - 298 325,740 271,864 ------849,241 - 298 849,539 677,119 ------Other income Other items 861 - - 861 699 ------Total incoming resources 3,699,896 1,099,128 298 4,799,322 4,129,387 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 29
2 Income and expenditure from trading subsidiaries
a) Winchester Cathedral Enterprise 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.
2011 2010 £ £
Turnover 1,7 67 ,879 1,701,804
Cost of sales (6 93 ,708 ) (720,987) ------Gross profit 1,07 4,171 980,817
Other operating charges (82 1,037 ) (726,145) Other operating income – ------Operating profit 25 3,1 34 254,672
Interest receivable 149 49 Interest payable and similar charges - –
------Profit on ordinary activities before donation 25 3,283 254,721
Donation to the Chapter of Winchester (25 3,2 83) (253,395) ------Profit for the financial year - 1,326 ======
The Net Assets of Winchester Cathedral Enterprises Limited at 1,003,705 1,003,705
31 March 2011 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 30
2 Income and expenditure from trading subsidiaries (continued)
b) Winchester Cathedral Box Office Limited
Winchester Cathedral Box Office Limited is a wholly owned subsidiary which is incorporated in the UK, Registered Company No. 594563. 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 been trading through the legal entity of Winchester Cathedral Enterprises Limited. A summary of the trading results for the previous year, which had been consolidated into Chapter accounts, are shown below. Audited accounts have been prepared and filed with the Registrar of Companies
2011 2010 Note £ £
Turnover - 86,430
Other operating charges - (81,805) ------Operating profit - 4,625
Interest receivable - 68 Interest payable and similar charges - (1,027)
------Profit on ordinary activities before donation - 3,666
Donation to the Chapter of Winchester - (3,666) ------Profit for the financial year – –
The Net Assets of Winchester Cathedral Box Office Limited at the 1 1
31 March 2011 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 31
3 Cost of generating funds Unrestricted Restricted Endowment Total Total funds funds funds funds funds 2011 2011 2011 2011 2010 £ £ £ £ £ Costs of facilities for visitors 84,61 8 - - 84,61 8 78,266 Costs of services directly recoverable 27,663 - - 27,663 49,323 Gross costs of shop, refectory and other trading activities 1,514,595 - - 1,514,595 1,503,906 General marketing costs 101,709 - - 101,709 92,605 Costs of appeals and fund raising 65,247 - - 65,247 95,547 Investment property costs 62,549 - - 62,549 15,046 Investment managers fees 39,266 - - 39,266 31,489 ------1,895,647 - - 1,895,647 1,866,182 ======4 Expenditure on mission Unrestricted Restricted Endowment Total Total funds funds funds funds funds 2011 2011 2011 2011 2010 Ministry £ £ £ £ £ Clergy stipends and working expenses 12,623 115,520 - 128,143 141,061 Clergy housing costs 16,464 394 - 16,858 9,494 Clergy support costs 56,843 - - 56,843 51,465 Services and music 724,824 124,060 - 848,884 796,544 ------810,754 239,974 - 1,050,728 998,564 ------Cathedral and precincts upkeep Major repairs and restoration 121 ,074 678,304 - 79 9,378 219,763 Maintenance and interior upkeep 173,221 126 ,270 - 299,491 219,217 Cathedral insurance 82,041 - - 82,041 91,266 Precincts, security and gardens upkeep 18 3,897 - - 18 3,897 219,196 Support costs 69,457 1,236 - 70,693 63,035 ------629,690 805 ,810 - 1, 435,500 812,477 ------Education and outreach Grants and scholarships 300 - - 300 3,800 Educational activities 86,024 - - 86,024 121,549 Archives and library 82, 797 6,044 - 88, 841 53,251 Charitable and other giving 10, 381 29,116 - 39 ,49 7 12,658 ------179 ,502 35,160 - 214 ,662 191,258 ------Other expenditure on mission Irrecoverable VAT 38,128 - - 38,128 15,027 Cathedral and close plans - - - - 90,677 ------38,128 - - 38,128 105,704 ------Total expenditure on mission 1,658,074 1,080,944 - 2,739,018 2,108,003 ======Statutory Supplement and Annual Accounts 2010/11 - Page 32
5 Support costs Direct Support Direct Support costs costs Total costs costs Total 2011 2011 2011 2010 2010 2010 £ £ £ £ £ £
Costs of generating funds 1, 821,208 74,439 1, 895,647 1,776,525 89,657 1,866,182 Ministry 848,514 202,214 1,050,728 787,304 211,260 998,564 Cathedral and precincts upkeep 1,280,796 154,704 1,435,500 670,230 142,247 812,477 Education and outreach 193,947 20,715 214,662 139,212 52,046 191,258 Other expenditure on mission 38,128 - 38,128 105,704 - 105,704 Governance costs 132,139 - 132,139 119,323 - 119,323 ------4,314,732 452,072 4,766,804 3,598,298 495,210 4,093,508 ======6 Governance costs 2011 2010 £ £ Auditors' remuneration: Audit services 15,750 15,500 Accountancy and other services 14,600 7,350 Under accrual in prior years - 400 Taxation advice 1,758 - Governance and strategic planning 100,031 96,073 ------132,139 119,323 ======7 Employees Staff costs during the year were as follows: 2011 2010 £ £ Salaries and stipends 1,549,140 1,591,828 Social security costs 120,342 119,759 Other pension costs 106,363 119,750 ------1,775,845 1,831,337 ======
The average number of employees on a full time equivalent basis during the year was as follows:
2011 2010 Cathedral staff 16 16 Administration 12 12 Education 2 2 Maintenance 11 9 Shop and refectory 22 25 Entrance desk and Box Office 3 3 ------66 67 ======Statutory Supplement and Annual Accounts 2010/11 - Page 33
7 Employees (continued)
One member of the Chapter, Mrs A Boyes CDir, FIOD, the Receiver General, received remuneration during the year of £64,096 (2010: £60,388). 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 £8,702 (2010: £12,160) 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:
2011 2010 £ £
Audit services 15,750 15,500 Accountancy and other services 26,350 7,350 ------42,100 22,850 ======
9 Investment property
Consolidated and Chapter Unrestricted Restricted Endowment Total funds funds funds funds £££ £££ £££ £££ Valuation At 1 April 2010 86,000 13,421,625 - 13,507,625 Change in use - - - - Additions - 114,142 - 114,142 Change in market value ------At 31 March 2011 86,000 13,535,767 --- 13,621,767 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 34
10 Investments
Unrestricted Restricted Endowment Total
funds funds funds funds £££ £££ £££ £££
Investments at market value 1 April 2010 466,142 890,537 4,931,184 6,287,863 Additions - - 315 315 Proceeds from disposals (7,088) (9,581) (42,160) (58,829) Transfers 230,497 (230,497) - - Net increase on disposals and revaluations 30,873 41,735 181,666 254,274 ------
Investments at market value 31 March 2011 720,424 692,194 5,071,005 6,483,623
Short term deposits - 12,655 - 12,655 Uninvested Cash 9,358 12,634 79,422 101,414 ------Market Value Carried Forward (Consolidated) 729,782 717,483 5,150,427 6,597,692
Investments in Group Undertaking at Net Asset Value 10,000 - - 10,000 ------Investments (Chapter) 739,782 717,483 5,150,427 6,607,692 ======
2011 2010 £ £
Equity funds 4,236,344 4,063,706 Fixed interest funds 510,908 513,214 Hedge funds 760,768 749,849 Property funds 221,751 222,811 Cash fund 101,414 42,576 Other managed funds 753,852 738,283 Other liquid resources 12,655 12,462 ------6,597,692 6,342,901 Shares in subsidiary companies 10,000 10,000 ------6,607,692 6,352,901 ======
The Chapter owns the whole of the issued share capital of Winchester Cathedral Enterprises Limited.
Statutory Supplement and Annual Accounts 2010/11 - Page 35
11 Non-investment property Consolidated Unrestricted Restricted Endowment Total funds funds funds funds Valuation £££ £££ £££ £££ At 1 April 2010 1,585,250 10,516,875 - 12,102,125 Additions - 390 - 390 Depreciation - (16,417) - (16,417) ------At 31 March 2011 1,585,250 10,500,848 - 12,086,098 ======
Chapter Unrestricted Restricted Endowment Total funds funds funds funds Valuation £££ £££ £££ £££ At 1 April 2010 220,000 10,731,875 - 10,951,875 Additions - 390 - 390 Depreciation - (16,417) - (16,417) ------At 31 March 2011 220,000 10,715,848 - 10,935,848 ======
Non-investment properties are held and used as follows: Long Freehold leasehold Total At 1 April 2010 £ £ £ For Cathedral administration and workshops 1,309,500 - 1,309,500 For Cathedral clergy and staff housing 6,502,125 220,000 6,722,125 For the Deanery 2,200,000 - 2,200,000 For the education centre 505,250 - 505,250 Leased to Winchester Cathedral Enterprises Limited 215,000 - 215,000 ------Chapter total 10,731,875 220,000 10,951,875 Eliminated on consolidation (215,000) - (215,000) For Cathedral trading activities 1,365,250 - 1,365,250 ------Consolidated total 11,882,125 220,000 12,102,125 ======Long Freehold leasehold Total At 31 March 2011 £ £ £ For Cathedral administration and workshops 1,293,473 - 1,293,473 For Cathedral clergy and staff housing 6,502,125 220,000 6,722,125 For the Deanery 2,200,000 - 2,200,000 For the education centre 505,250 - 505,250 Leased to Winchester Cathedral Enterprises Limited 215,000 - 215,000 ------Chapter total 10,715,848 220,000 10,935,848 Eliminated on consolidation (215,000) - (215,000) For Cathedral trading activities 1,365,250 - 1,365,250 ------Consolidated total 11,866,098 220,000 12,086,098 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 36
12 Cathedral plant and equipment
Consolidated Chapter £££ £££ Cost At 1 April 2010 530,613 189,422 Additions 61,841 5,663 ------At 31 March 2011 592,454 195,085 ------
Depreciation At 1 April 2010 430,671 156,170 Charge for the year 44,580 19,380 ------At 31 March 2011 475,251 175,550 ------
Net book value At 31 March 2011 117,203 19,535 ======At 31 March 2010 99,942 33,252 ======
13 Debtors Consolidated Chapter 2011 2010 2011 2010 £ £ £ £
Winchester Cathedral Enterprises Limited - - 235,176 228,397 Other debtors 279,893 223,449 266,146 191,200 Prepayments 45,601 26,582 32,373 26,421 ------325,494 250,031 533,695 446,018 ======
14 Current liabilities Consolidated Chapter 2011 2010 2011 2010 £ £ £ £
Bank overdraft 101,874 - 101,874 - Trade creditors 151,827 126,638 108,742 93,054 Social security and other taxes 92,695 38,359 86,112 31,130 Other creditors 170,769 98,079 79,396 64,094 Accruals 70,048 172,284 70,048 146,022
------587 ,213 435,360 446,172 334,300 ======Statutory Supplement and Annual Accounts 2010/11 - Page 37
15 Endowment funds
Consolidated and Chapter Net Investment Incoming/ gains/ At 1 April (outgoing) (losses) in At 31 March 2010 resources the year 2011 £ £ £ £
Appeal fund: Fabric 1,718,352 - 72,561 1,790,913 Music 68,242 - 2,881 71,123 Staff 23,976 - 1,012 24,988 ------1,810,570 - 76,454 1,887,024 Music 2,300,430 - 89,957 2,390,387 Permanent endowment 738,282 298 15,255 753,835 John and Kathleen Kyle Memorial Fund for Lay Clerks 80,000 - - 80,000 Roger Bruce Ellery 38,768 - - 38,768 Kingston Prize 400 - - 400 ------4,968,450 298 181,666 5,150,414 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 38
16 Restricted funds
Consolidated Net Investment Incoming/ gains/ At 1 April (outgoing) (losses) in At 31 March 2010 resources the year 2011 £ £ £ £
AEV Day deceased 1,067,135 - 41,735 1,108,870 Fabric 32,142 500 - 32,642 Fabric and worship 46,087 - - 46,087 Deanery furnishings 17,709 - - 17,709 Cathedral charitable 25,873 2,273 - 28,146 Patrick Mace 10,357 - - 10,357 Library 26,988 (21) - 26,967 Choristers’ bursary 13,257 - - 13,257 Thomas-Davies 12,462 193 - 12,655 Venerable Altar/ Swags 5,617 10,259 - 15,876 Quire Blue and Gold - 2,735 - 2,735 Organ Future Project - 1,250 - 1,250 Woodhouse Trust 4,570 - - 4,570 Girls’ choir 3,771 90 - 3,861 Touch and hearing 2,121 - - 2,121
Cutter bequest fund 2,000 - - 2,000 Ferrard 1,777 - - 1,777 Pastoral centre 1,455 - - 1,455 Altar cloth 1,275 - - 1,275 Pentecost Girls Choir Legacy 735 - - 735 Visual arts 429 - - 429 Retroquire carpet fund 1,750 - - 1,750 Rains fund 1,282 - - 1,282 Music (5) 18,000 - 17,995 Deanery Garden fund 933 503 - 1,436 Winchester Bible (1,651) 1,651 - - Small Restricted funds 4,450 (2,832) - 1,618 ------1,282,519 34,601 41,735 1,358,855
Close property revaluation reserve 23,604,024 (16,417) - 23,587,607 ------24,886,543 18,184 41,735 24,946,462 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 39
16 Restricted funds (continued)
Chapter Net Investment Incoming/ gains/ At 1 April (outgoing) (losses) in At 31 March 2010 resources the year 2011 £ £ £ £
AEV Day deceased 1,067,135 - 41,735 1,108,870 Fabric 32,142 500 - 32,642 Fabric and worship 46,087 - - 46,087 Deanery furnishings 17,709 - - 17,709 Cathedral charitable 25,873 2,273 - 28,146 Patrick Mace 10,357 - - 10,357 Library 26,988 (21) - 26,967 Choristers’ bursary 13,257 - - 13,257 Thomas-Davies 12,462 193 - 12,655 Venerable Altar/ Swags 5,617 10,259 - 15,876 Quire Blue and Gold - 2,735 - 2,735 Organ Future Project - 1,250 - 1,250 Woodhouse Trust 4,570 - - 4,570 Girls’ choir 3,771 90 - 3,861 Touch and hearing 2,121 - - 2,121
Cutter bequest fund 2,000 - - 2,000 Ferrard 1,777 - - 1,777 Pastoral centre 1,455 - - 1,455 Altar cloth 1,275 - - 1,275 Pentecost Girls Choir Legacy 735 - - 735 Visual arts 429 - - 429 Retroquire carpet fund 1,750 - - 1,750 Rains fund 1,282 - - 1,282 Music (5) 18,000 - 17,995 Deanery Garden fund 933 503 - 1,436 Winchester Bible (1,651) 1,651 - - Small Restricted funds 4,450 (2,832) - 1,618 ------1,282,519 34,601 41,735 1,358,855
Close property revaluation reserve 23,819,024 (16,417) - 23,802,607 ------25,101,543 18,184 41,735 25,161,462 ======
Statutory Supplement and Annual Accounts 2010/11 - Page 40
17 Unrestricted funds Consolidated Net Investment Incoming/ gains/ At 1 April (outgoing) (losses) in At 31 March 2010 resources the year 2011 £ £ £ £ General fund 1,574,907 14,036 30,873 1,619,816 Property revaluation reserve 634,235 - 634,235 ------2,209,142 14,036 30,873 2,254,051 ======
Chapter Net Investment Incoming/ gains/ At 1 April (outgoing) (losses) in At 31 March 2010 resources the year 2011 £ £ £ £ General fund 766,157 14,036 30,873 811,066 Property revaluation reserve 159,032 - - 159,032 ------925,189 14,036 30,873 970,098 ======
18 Reconciliation of net (outgoing)/ incoming resources to net cash outflow from operating activities 2011 2010 £ £ Net incoming/(outgoing) resources before revaluations and disposal of investments 90,700 93,790 Less income from property and investments (849,539) (677,119) Add property management costs and investment manager costs. 39,266 31,489 Depreciation charges 60,997 44,846 Decrease/(increase) in stocks 3,899 17,007 (Increase)/decrease in debtors (75,463) (75,617) Increase/(decrease) in creditors 49,979 54,673 ------Net cash outflow from operating activities (680,161) (510,931) ======
19 Reconciliation of net cash flow to movement in net funds 2011 2010 £ £ Decrease in cash (104,960) (88,788) Increase / (Decrease) in liquid resources 175 (76,367) ------Decrease in net funds (104,785) (165,155) Net funds at 1 April 2010 90,192 255,347 ------Net funds at 31 March 2011 (14,593) 90,192 ======
Annual Report Statutory Supplement and Audited Accounts - Page 41
20 Analysis of changes in net funds At 1 April At 31 March 2010 Cash flow 2011 £ £ £ Cash at bank and in hand/(Overdraft) 77,712 (104,960) (27,248) Cash balances included in investments 12,480 175 12,655 ------90,192 (104,785) (14,593) ======
21 Capital commitments
There were no capital commitments at 31 March 2011 or 31 March 2010.
22 Contingent assets/liabilities
There were no contingent assets or liabilities at 31 March 2011 or 31 March 2010.
23 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. At 31 March 2011 the Chapter had 5 active members and 13 deferred pensioner members in the DBS. The Chapter 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 DBS. A valuation of the Fund was carried out as at 31 December 2007 and the Chapter's contribution rate was revised to 25.6% with effect from 1 January 2009.
24 Connected entities
Certain members of the Chapter are trustees of both The Winchester Cathedral Trust and The Carl Klein Trust, and are members of 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 and distribution of funds raised to meet the costs of choristers.
Annual Report Statutory Supplement and Audited Accounts - Page 42
24 Connected entities (continued)
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. The most recently published summarised results of these entities are as follows:- The Friends The of Winchester The Winchester Cathedral Carl Klein Cathedral Trust Trust 31/03/2011 31/03/2011 31/03/2011 £££ £££ £££ Gross Income 227,915 233,244 500 ------Net incoming/(outgoing) resources for the year 82,136 63,909 60 ------Net Movement in Funds 103,631 63,909 60 ------Amounts paid or payable to the Cathedral 90,186 30,816 100 ------Gross Assets 651,122 476,624 418,520 ------Net Assets 465,331 439,688 418,244 ------
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 1993. 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.
25 Related party transactions
During the year the Chapter received £nil (2010: £48,692) from The Winchester Cathedral Trust. During the year the Chapter received £690,828 (2010: £147,283) from The Friends of Winchester Cathedral in grants. During the year the Chapter received £127,199 (2010: £118,700) from The Pilgrims' School (Limited by Guarantee) in respect of rent. During the year the Chapter paid £202,917 (2010: £205,333) in respect of School fees of Choristers to The Pilgrims' School (Limited by Guarantee). During the year the Chapter paid £1,861 (2010: £3,305) to Sophie Hacker, the wife of a Chapter member Canon Roland Riem, in respect expenditure on arts and exhibitions.
Annual Report Statutory Supplement and Audited Accounts - Page 43