ANNUAL REPORT

STATUTORY SUPPLEMENT AND AUDITED ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2017

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 2012016666////11117777 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 Canons ...... 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 body corporate ...... 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...... 17 4.10 Public Benefit ...... 17 4.11 Risk...... 17 555 Financial Review ...... 18 5.1 Reserves Policy ...... 18 5.2 Investment Policy ...... 18 5.3 Investment performance ...... 19 5.4 Cathedral maintenance plan ...... 20 5.5 Five-year trends ...... 20 5.6 Commentary on the 2016/17 results ...... 20 666 Plans for future periods ...... 22 777 Audited Accounts ...... 23

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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 historic dignity and stunning beauty of Winchester Cathedral and its music and liturgy were fully displayed on the day of my Installation as 38th Dean of Winchester, on Saturday 11 February 2017 by the Bishop of Winchester. The generous welcome from Cathedral, Diocese and County and the presence of Cathedral partners from Namirembe, Stavanger and Newcastle were deeply impressive. The theme of ‘Living water’ flowed through the Service in word and music reflecting both the call of Christ and the clear fresh waters flowing through the city and county.

My appointment followed the retirement of Dean James Atwell to whom a huge debt of thanks is due for his steering and stewardship of this ‘great ship of faith’, and for his many achievements. During the vacancy Canon Roly Riem led Chapter as Acting-Dean with skill and assurance and I am grateful for his generous support.

I am fortunate to have arrived towards the completion of the Appeal, with donations received and pledged reaching the target needed to complete the ambitious project to preserve and enhance our built heritage and share the stories of the Cathedral more widely. Dame Mary Fagan, Chairman of the Trust is to be made a Companion of the Order of St Swithun in recognition of her selfless commitment to this task.

The life of the Cathedral takes place over an active well, symbolic of the Holy Spirit, giver of life and energy. Life and energy are certainly needed to maintain the daily activity of the Cathedral. At the heart is the steady rhythm of prayer and worship, marking the day and supporting the prayers said quietly and privately throughout the day. Much of our prayer is sung by the boys, girls and men of our choir and the superlative work of our choirs and musicians, led by Andrew Lumsden, is greatly to be treasured.

Around prayer and worship the Cathedral hosts an increasing number of special services to serve the wider communities of city, county and diocese and visits from schools, individual and associations, including both tourists and pilgrims. None of this would be possible without the selfless work of staff and volunteers, both lay and ordained. I am profoundly grateful for the commitment that so many show to caring for, and growing, the life and ministry of this place.

Among many special events during the year were a packed cathedral to mark HM the Queens 90th birthday on Sunday 24 April; the 175th anniversary of the University of Winchester; the bi-centenary of Waterloo; the 70th anniversary of VE day and the 70th anniversary of Christian Aid. The Earl of Wessex spent a good part of Friday 29 April with us when he officially opened the new Wessex Learning Centre and then was Guest of Honour for the magnificent Gala Dinner in the Nave which benefitted the Cathedral Appeal. We installed four new Honorary Canons and two Ecumenical Canons in April and May. At the request of the Archbishop of Canterbury we were a Beacon Cathedral for Pentecost (15 May 2016) attracting about 3000 people including many children and young people. The newly gilded cross on the nave Sanctuary screen was dedicated in memory of Bishop Michael Scott-Joynt, former Diocesan Bishop, on 5 June 2016.

I am grateful to have come to lead a cathedral in good financial health. The care of our people and buildings gives us enormous financial challenge, which is being met by the inspirational commitment of the Receiver General, Canon Annabelle Boyes, to whom I am deeply grateful.

The Very Rev’d Catherine Ogle, Dean of Winchester

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My final three months as Captain of the great ship of faith which is Winchester Cathedral have had no sense of running down. Special events have included the Cathedral packed to capacity with representation of the life of the County to mark HM The Queen’s 90th Birthday on Sunday 24 April. HRH The Earl of Wessex spent a good part of Friday 29 April with us when he officially opened the new Wessex Learning Centre and then was Guest of Honour for the magnificent Gala Dinner in the Nave which benefitted the Cathedral Appeal. We installed four new Honorary Canons and two Ecumenical Canons in April and May. At the request of the Archbishop of Canterbury we were a Beacon Cathedral for Pentecost (15 May). Other celebrations marked included the Duke of Edinburgh’s Award 60th Anniversary Service (13 March) and the Cubs’ 100th Birthday Service (3 June, which coincided with the Dean’s 70th birthday!).

A Font Symposium was held on Wednesday 25 May, chaired by Sir Paul Ruddock, it gathered specialists in the area of conservation and liturgy. The beautiful Tournai font requires conservation work and a decision as to where it will be placed once conserved. That latter decision is key to other hopes for liturgical reordering, including a permanent solution to the temporary Nave sanctuary platform. The scaffolding, creating a temporary waterproof canopy, was lifted from the roof of the Presbytery amid intense media interest on Wednesday 11 May, signifying the completion of the replacing of the lead on the external roof. Progress has also continued on the Appeal which now stands at £900,000 yet to be raised (NB This report was written in June 2016) . The newly-gilded cross on the Nave sanctuary screen was dedicated in memory of Bishop Michael Scott-Joynt, former Diocesan Bishop, on 5 June. So much that has been achieved is teamwork with my colleagues and I would pay a special tribute to Annabelle Boyes, our Receiver General, whose inspirational commitment is ever scaling new heights.

My final weekend as Dean (11/12 June) coincided with the national celebration of HM The Queen’s 90th birthday, which made for a truly memorable weekend. It brought to a crescendo a decade as Dean of Winchester.

The Very Rev’d James Atwell, Dean Emeritus of Winchester Written June 2016

2.22.22.2 The RRReceiverReceiver General

Another reporting year ends, time to reflect on some extraordinary notable achievements and memorable moments.

In June we bade a fond farewell to Dean James Atwell and gave a warm welcome to Dean Catherine Ogle in February.

It was gratifying to report that, having designated £569k of legacy and donation income to the Deanery Maintenance Fund, we finished the year with a surplus of £71k, a tremendous result made possible by a record-breaking year for our trading company WCEL, returning a net profit contribution of £501k, largely achieved by an excellent bottom line contribution from the Ice Rink. We operated the Ice Rink under cover of a roof for the first time and successfully operated by the in-house team.

HRH The Earl of Wessex KG GCVO officially opened the Wessex Learning Centre while on the same day we celebrated winning the RIBA South Award for this building. An immense achievement given we were competing within a field of outstanding architectural designs. Congratulations to Bob Wallbridge, Giles Pritchard and the Hampshire County Council architectural team.

The Gala Dinner held in April, and attended by HRH Prince Edward, Patron of the WCT Capital Appeal was simply spectacular. Over 360 donor hosts and guests sat down to dine in the nave and enjoyed a sumptuous menu prepared by our celebrity chefs Andy Mackenzie, Luke Matthews and Jack Stein who gave their time free to help raise funds for our Capital Appeal. We received support from producer and makers-gifts-food and wine and donations from too many people to mention but “Thank you to you All” for making this a most memorable evening. A very special thank you to the Cathedral Flower Team who ensured the Cathedral looked and smelled spectacular! Yet another very successful first was our Annual Report Statutory Supplement and Audited Accounts - Page 5

hosting the Stone Masons Festival to celebrate and demonstrate some of the many crafts and skills of our in-house team, who were joined by others from the UK and beyond. It afforded the public the opportunity to appreciate first-hand some of the craftsmanship and skills that have been constantly at work in our Cathedral for many centuries.

The Projects have been coming on apace; it was exciting to complete the conservation of the Mortuary Chests and with Dr Lucy Wrapson’s help to see them placed them back on top of the Screens in their correct order which meant the reopening of the Lady Chapel in time for Dean Catherine’s installation. The WW1 lighting grant has been used to rewire and improve the lighting at the East end of the Cathedral, as well as the Chapels and Chantries, the Quire and parts of the Presbytery aisles with amazing effect. Some of the wiring dated back to 1933 and gave us great concern when some of the old lighting fitments caught fire last year. The Deanery conservation and refurbishment project got underway and we have managed to fund the expenditure to date from income. The overall cost for the Dean’s accommodation is budgeted at £1.5 million for this part of the Deanery. The Deanery project is an existing Quinquennial liability and vividly shows how quickly Quinquennial liabilities can spiral if not dealt with in a timely planned manner. For instance we have given high priority to saving our Medieval glass windows but the reality is there is even older glass in the Long Gallery which desperately needs to be saved; this has now become a priority for Chapter.

We are enormously grateful for legacy income this year which has helped meet the cost of such fabric repairs. It is this continuous generosity which enables us all to care for our Cathedral and Estates and carries on the inter-generational stewardship, core to carrying out our Mission and Ministry.

This year has proven to be an amazing success story written by us all.

Thank you for your continued and valued support.

Canon Annabelle Boyes, Receiver General and Canon Treasurer

2.32.32.3 Worship

This year was a year of happy endings and new beginnings for the Liturgy & Music Department. We gave Dean James a very fond farewell and also said goodbye to Timothy Parsons, our Organ Scholar, who has moved on to become the Assistant Director of Music at Exeter Cathedral. Our new beginnings included welcoming a new bass, Jack Comerford, who has previously been at York Minster; One new Virger in the form of Adam Wilson, a new part-time Virger, Ian James, and our new curate; the Rev’d Katie Lawrence.

Another exciting new beginning has been the formation of our Cathedral Junior Choir. This is a non- auditioned choir for seven to fourteen year olds conducted by Keith Clark, formerly of Hampshire County Youth Choir. Our first production was a staged performance of Joseph and the Technicolour Dreamcoat in aid of our music. This also included a number of familiar-looking soloists from the back row of our choir.

Members of the Cathedral Choir have also sung at a number of very important and high profile events including the Wedding of the Year, which (from the Cathedral’s point of view) was the wedding of Richard Pratt and Zoë Thesiger, which took place by candlelight in the quire on New Year’s Eve. The service was a combination of Choral Evensong and the Marriage Service, with canticles by Howells and an outrageous final Amen which combined the traditional Gibbons with Wood’s ‘Collegium Regale’.

It was very exciting to be able to help plan Dean Catherine’s installation this February, and we took a theme of ‘Living water’ for the service which revealed itself in the readings, the hymns and the musical items. We also had a historic collection of banners at this service, including the national Mother’s Union banner of the Blessed Virgin Mary.

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One of the problems this year was a happy one: on a number of occasions we have had so many people wanting to come to a service that we simply haven’t been able to fit them in. This was the case with the Mother’s Union 140th anniversary service which we had to run twice. Archbishop Justin Welby preached at the afternoon service and Nigel Stock, the Bishop at Lambeth, preached in the morning. We also had ‘full houses’ at a number of the carol services.

A poignant event this autumn was the dedication service for the memorial to John Tavener. We had a number of Orthodox clergy present and some worshippers had come very long distances to attend. Another small, but special service was the Eucharist for Val Braithwaite who died 100 years ago on the first day of the Battle of the Somme and whose battlefield cross is in the crypt.

None of these amazing services would be possible without our wonderful team of staff and volunteers including our Virgers, Bellringers, our Voluntary Choirs, the people who wash the altar linen and do the choir wardrobe, our Servers, intercessors and children’s helpers, and all those who raise and donate money to make our music and worship so very special.

Canon Sue Wallace, Precentor and Sacrist

2.42.42.4 Education and Spirituality

April 2016-17 has hardly been a regular period of service for me. With joy and satisfaction I recall last February, when Dean Catherine arrived and I was given the privilege of installing her. Chapter had then, as it continues to have now, a sense of the grace and wisdom that our new Dean brings to Winchester.

I recall also with gratitude the events of the vacancy, especially those of last July - the College of Canons Eucharist, the Friends’ AGM and the Stonemasonry Festival - which were glorious opportunities to celebrate the life we share together. Later on, the Opening of the Christmas Market brought an unsuspecting audience to the Inner Close who had to endure a skating vicar. My colleagues were very patient in releasing me from other responsibilities and kind in bearing with novice hands at the tiller.

Despite these upheavals, the Bible has been a steady point of reference. Last April saw the completion of the conservation of the second volume of the Bible under the hands of Andrew Honey and his team at the Bodleian Library. Though it was a challenge to match the excellent work carried out on Volumes 1 and 2 by Christopher Clarkson, sadly now deceased, photographic evidence and the memory of those who had worked on the binding of Volume 1 ensured continuity. The second volume, once completed, was replaced at the Bodleian by the third, which has in turn been completed. We are certainly on the home stretch of this historic project.

The results of this work, as well as scholarly research done on the Bible while in conservation, would become the subject of a colloquium in June 2017. The costs of this work were supported by September’s Bible Marathon, a tremendous team effort. So many of those who took part over the 72 hours it took to read the Bible from cover to cover said that they really enjoyed their passage and taking part in the shared enterprise. We raised over £9k and, more importantly, gave the sense that the Bible remains core to our purposes. Indeed, it will feature even more prominently in our new exhibitions.

The opening of the Wessex Learning Centre was marked by an entertaining and stretching lecture to an all-age audience by Professor Simon Conway Morris, on ‘Christianity and Evolution’. Since then we have become rapidly used to this award-winning facility adjacent to the already beautifully renovated Learning Centre. We held, for example, an important series on ‘Caring for Creation in a Lower Carbon World’, in partnership with the Diocese and with Winchester Action for Climate Change. An environmental audit will now follow.

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Next year’s Report will be too late to mention the departure in July 2017 of Canon Gregory Clifton Smith, who has been Close Vicar for five years. Gregory’s faithfulness in visiting those no longer able to come to the cathedral and his advocacy of chaplaincy will be especially missed, as will his wife Robbie’s involvement with Children’s Church.

Canon Dr Roland Riem, Vice-Dean and Canon Chancellor

2.52.52.5 Canon Principal

The Canon Principal role is one way the unity between the Cathedral and the Diocese of Winchester is demonstrated. This becomes visible not least when the Cathedral is used as the primary place of celebration in the Diocese of Winchester. As Canon Principal of the Diocesan School of Mission I am proud to see people graduate from their formation and training and for this celebration to take place in the Cathedral.

We celebrated this year a good number of ordinands being deaconed and priested (in July) including our own curate Katie Lawrence. This year’s service of licensing Lay Ministers (LLMs) in October took a new turn when not just LLMs were licensed, but six further people were commissioned by the Bishop to join in living the mission of Jesus. One serves in a prison, and others are commissioned to serve in pastoral roles in their parishes. We are likely to see over forty people authorized with this new Bishop’s Commission for Mission following the programmes of this past year.

My team also helped coordinate curate involvement in Thy Kingdom Come following the Archbishop’s invitation for the nation to pray the Lord’s Prayer. In February an ecumenical prayer workshop was packed out in the Wessex Learning Centre. In May prayers from parishes around the Diocese were brought together in a 48-hour public prayer event in the Outer Close in association with Christians from other churches, culminating in a Beacon service that saw many gathered both inside and outside the Cathedral. Canon Mark Collinson, Canon Principal

2.62.62.6 Lay Canons

Three Lay Canons became two this past year with the retirement of Professor Lord Plant who had given nine years’ dedicated service in the role. Chapter said farewell to Raymond and Katherine with a dinner in the Paul Woodhouse Suite at which he regaled guests with a fund of anecdotes from public life and ‘the other place.’ We miss him on all counts, not least for his self-deprecating wit.

George Medd continued his links with the Trinity Centre and during the year joined the ‘Outreach Action and Advisory Group’, taking over from Dean James. This group has a lot to offer and it was exciting to be part of the fundraising events in the year, and planning for the next year.

In response to the success of last year’s event for parish communicators in The Close, Debbie Thrower organised, with colleagues on the Cathedral’s ‘Mother Church Action and Advisory Group’ which she chairs, a second communications workshop- ‘Still Want to get Noticed?’ It affirmed the importance of those men and women who, regularly edit parish magazines and manage church and community websites and aimed to give more advice on communications skills, especially in relation to social media.

Dozens of parish communicators - from all corners of the region - attended the event held in the Wessex Learning Centre overlooking the Cathedral. From feedback received, it was clear the day had provided some of the practical help and training which people in parishes much needed, and the responses were overwhelmingly positive and appreciative.

Dean Catherine welcomed, with us, her first group of clergy, chaplains and other ministers new in post in the diocese – also at the Wessex Centre – a new venue for tea after the group’s tour of the

Annual Report Statutory Supplement and Audited Accounts - Page 8 cathedral as a working Mother Church while the Deanery is being renovated. Parties also visit the Resource Room in the Close as part of their induction.

George became a Chapter appointment to the Governing Body of the Pilgrims’ School, a role he sees as not only helping to ensure the best education for the boys, but also to maintain what is clearly a very close and active link with the Cathedral.

The Tea at Three pastoral initiative to welcome older people and those on their own to a monthly cream tea in the Cathedral Close is growing in popularity. Debbie visited Brother Andrew Crowther- Walker who bakes the scones at home to thank him, and write a short piece for the Cathedral Newsletter.

The pastoral team have made strides in publicising Tea at Three in the city’s sheltered homes, retirement complexes and at other groups catering for older people. Talks, for example by Bruce Parker MBE, Chairman of the Cathedral Friends, add another dimension to the gatherings and ensure there are ideas to ponder as well as good food and company to share.

As Lay Canons, we’re fortunate to have a seat close to the action, and the extraordinarily accomplished choirs and musicians. We count it a privilege, and a responsibility to help even more people share the good things the Cathedral offers, especially those who might be crossing the threshold for the first time and just beginning to appreciate the historic setting and the unceasing round of worship and prayer in a place steeped in the beauty of holiness.

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 2017 were as follows: The Dean The Very Revd Catherine Ogle (from February 2017) The Dean The Very Revd James Atwell (until July 2016) Vice Dean & Canon Chancellor The Revd Canon Dr Roland Riem Receiver General & Canon Treasurer Mrs Annabelle Boyes MBE Canon Principal The Revd Canon Mark Collinson Canon Precentor & Sacrist The Revd Canon Sue Wallace Lay Canon The Lord Plant of Highfield (until February 2017) Lay Canon Mr George Medd Lay Canon Ms Debbie Thrower

3.43.43.4 Officers of the Foundation High Steward His Grace The Duke of Wellington OBE DL 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 2017 were as follows: Miss Jean Ritchie QC (Chair) (Bishop’s appointment) The Very Revd Catherine Ogle (ex officio) (from February 2017) The Very Revd James Atwell (ex officio) (until July 2016) Mrs Annabelle Boyes MBE (Chapter appointment) Brigadier Alastair Bruce of Crionaich OBE ADC DL (Bishop’s appointment) Mr David Evans (Bishop’s appointment) Mr Alan Lovell DL (Bishop’s appointment) (until March 2017) 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 Peter Seal (appointed by College of Canons) (from March 2017) The Revd Canon Jo Stoker (appointed by College of Canons) The Revd Canon Dr Ian Tomlinson (appointed by College of Canons) (until November 2016) 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 Mr Stephen Adam (Minutes Secretary) Annual Report Statutory Supplement and Audited Accounts - Page 10

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 Catherine Ogle (from February 2017) The Dean of Winchester, The Very Revd James Atwell (until July 2016) Vice Dean & Canon Chancellor, The Revd Canon Dr Roland Riem Receiver General & Canon Treasurer, Mrs Annabelle Boyes MBE Canon Precentor, The Revd Canon Sue Wallace Canon Principal, The Revd Canon Mark Collinson Prof the Rt Hon Lord Plant of Highfield (until February 2017) Canon George Medd Canon 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 Tim 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) (until November 2016) 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 Steve 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 appointmeappointmentsntsntsnts

Receiver General & Canon Treasurer Mrs Annabelle Boyes MBE 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 Edmund Byers (chair from February 2017) The Very Revd Catherine Ogle – The Dean (Chapter) (from February 2017) The Very Revd James Atwell – The Dean (Chapter) (until July 2016) The Revd Canon Dr Roland Riem – Vice Dean & Canon Chancellor (Chapter) Mrs Annabelle Boyes MBE - Receiver General & Canon Treasurer (Chapter) Sir James Butler CBE DL (Chair for November 2016 meeting) The Lord Poole (from July 2015) Mr John Pringle Mr Martin Reid (chair until February 2017) Mr Christiaan Beech - Head of Finance (in attendance)

3.93.93.9 Fabric Advisory Committee

Professor Martin Biddle CBE (Chair) Ms Zuleika Dobson Mr Antony Feltham-King Mr Christopher Gordon Mr John Spokes QC Professor Michael Wheeler Professor Barbara Yorke The Revd Jeremy Davies The Very Revd Catherine Ogle – The Dean (in attendance) (from February 2017) The Very Revd James Atwell - The Dean (in attendance) (until July 2016) Mr Nick Cox, Cathedral Architect (in attendance) Dr John Crook, Cathedral Archaeologist (in attendance) Mrs Annabelle Boyes MBE – Receiver General & Canon Treasurer (Secretary)

3.103.103.10 Winchester Cathedral EnterpriEnterprisesses Ltd

Mr Damien Carpanini (Director and Chair) (from July 2016 ) Mr Jonathan Durrant (Director and Chair) (until July 2016) Mrs A nnabelle Boyes MBE (Managing Director) Annual Report Statutory Supplement and Audited Accounts - Page 12

The Rev d Canon Dr Roland Riem (Director) Mr Robert Carr-Archer (Director) (from January 2017) Mr R upert Ellwood (Director) Mr Christiaan Beech (Company Secretary)

3.113.113.11 Auditors

Mazars LLP 5th Floor Merck House Seldown Lane Poole BH15 1TW

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

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 Chapter Lead Mrs Gillian Allen, Litter Pickers The Dean Mrs Carole Barrett & Miss Anne Peebles-Brown, Hospitality Team The Dean Mrs Frances Carroll, Dean Garnier Gardeners The Dean Mr Paul Wing, Head Sidesman & lunchtime recitals The Dean Mrs Jo Bartholomew, Curator & librarian Canon Roland Riem Mrs Cheryl Bryan, Children’s education Canon Roland Riem Mrs Audrey Constantine, Intercessions Canon Roland Riem Mrs Rosemary Durward, Children’s Church Canon Roland Riem Mr Julian English, South Transept Co-ordinator Canon Roland Riem Mrs Brenda Fletcher, Information Desk Canon Roland Riem Mr Phillip Johnson, Calligraphers Canon Roland Riem Mr Stephen O’Connell, Guides Canon Roland Riem Mr Brian Scott, Welcoming Stewards Canon Roland Riem Mr Jeff Steer, Tower Tour Guides Canon Roland Riem Mrs Valerie Woodward, Visitors’ Chaplains Canon Roland Riem Mrs Sue Armstrong, Sunday morning coffee team Canon Sue Wallace Mr Nick Bucknall, Bell Ringers Canon Sue Wallace Mrs Anna Diamond, Broderers Canon Sue Wallace Mr Daren Gibb, Virgers Canon Sue Wallace Mrs Andrea Hall, Wardrobe Team Canon Sue Wallace Mrs Sue Ouvry, Readings Canon Sue Wallace Mrs Judith Pope, Family welcome Canon Sue Wallace Miss Marion Steads, Proof Readers Canon Sue Wallace Mr John Weatherley, Servers Canon Sue Wallace Chamber Choir Canon Sue Wallace Junior Choir Canon Sue Wallace Nave Choir Canon Sue Wallace Mrs Margaret Braddock, Holy Dusters / Brass Band Canon Annabelle Boyes Mrs Svetlana Cochrane, Shop Canon Annabelle Boyes Mrs Sheena Crawford-Moody, Events Stewards Canon Annabelle Boyes Mrs Mel Donaldson. Cloisters Canon Annabelle Boyes Mrs Rosemary Howland, Concert Programme Sellers Canon Annabelle Boyes Mr Peter Macfarlane, Deanery Books Canon Annabelle Boyes Mr Peter Matthews, Cash Counters Canon Annabelle Boyes Mrs Helen McGarry, Flower Arrangers Canon Annabelle Boyes Mrs Emma Sharpe, Gardeners Canon Annabelle Boyes Mrs Sarah Williams, St. Christopher’s Canon Annabelle Boyes

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. In addition the Care of Cathedrals Measure 2011.

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

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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.

444.34.3.3.3 Organisational structure ––– the body corporate The Dean & Chapter of the Cathedral – The 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 responsibilities. 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 delegated responsibility for cathedral administrative support services and resources (Chief Operating Officer).

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 the 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. Annual Report Statutory Supplement and Audited Accounts - Page 15

Winchester Cathedral Trust Established in 1983, Winchester Cathedral Trust is an independent charity set up to receive money raised from major 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 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, and Care of the Cathedrals Measure 2011. 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. Regard is given to Charities Commission guidance on the Role of a Trustee. 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 Very Revd Dean James Atwell retired as Dean in July 2016, succeeded by The Very Revd Catherine Ogle in February 2017. Annual Report Statutory Supplement and Audited Accounts - Page 16

Lord Plant retired from Chapter in February 2017. 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 Chapter confirm that they comply with the guidance of the Church Commissioners in regard to public benefit guidance published by the Charity Commission under the Charities Act 2011 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 The Cathedral has in place internal control measures intended to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve its strategic objectives. The System of internal control is one where risks are identified, prioritised, managed and monitored.

The Cathedral maintains a Corporate Risk Register which is continually updated and formally reviewed by Chapter on an annual basis. Each risk has a lead member of Chapter allocated and a lead member of staff. In addition to the Corporate Risk Register each department maintains its own risk register and the Capital Project Risk Register is reviewed fortnightly at Project Board Meetings. Each risk is assessed against its likelihood and potential impact to arrive at an overall Low, Medium or High risk rating.

The principle risks are as follows: • Corporate Governance (including non-compliance with legal requirements) • Mission & Ministry • Financial (including cash flow, capital fundraising, loss of visitor related income and loss of income from specific sources) • People (including staffing, volunteers and safeguarding) • Physical Impacts (including enforced closure due to external factors and significant physical damage to the Cathedral or environs) • Reputation (including failure to maintain the Cathedral’s reputation and standing and adverse media coverage) • Other Risks (including permissions & licences and failure of IT)

With regards to the items with a High risk rating: • The Safeguarding and protection of children and vulnerable adults is of primary concern for the Cathedral. There is a clear policy backed up by appropriate training and priority is given to safeguarding in operational planning. An in-house Safeguarding Officer will be appointed in 2017/18. • Chapter set the Policy for Health & Safety issues (including fire safety) and delegate day to day operational control to a Health & Safety Management Group (H&SMG) while encouraging all staff and volunteers to play an active part in delivering a safe environment for all. The H&SMG meets monthly and is chaired by the head of operations, and formally reports to Chapter on a six-monthly basis with reports on specific items as required. Health & Safety throughout the organisation is supported by Mentor and other professional bodies. • The potential impact of a significant reduction in income (either by external factors such as terrorism or by loss of, or damage to, the Cathedral) is mitigated by seeking to increase the diversity of income streams and having solid Business Continuity Planning in place. Annual Report Statutory Supplement and Audited Accounts - Page 17

555 Financial Review

5.15.15.1 ReservReserves es 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.

Chapter have considered an appropriate level of unrestricted general reserves required in the short term as at the 31 March 2017 to be at least £1.0m. This is based on an estimate of on-going unrestricted expenditure for a minimum six month period. The current value of the unrestricted general funds as at 31 March 2017 is £1.0m, with an additional £1.2m in designated funds. It should be noted that £1.0m of this is designated for the Deanery refurbishment project.

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 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.

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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 subsequent interim valuations, the last on 31 March 2017.

£000 Rental income 639 Professional services (-) Repairs (6) Net income 633

Yield on investment properties

Capital value investment property (£000s) 17,922 Net income yield 3.5% CBF Property Fund income yield 5.6%

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. Rental income in 2016/17 reduced due to a property being temporarily unavailable for rent. Despite these factors, the policy to increase property and rental opportunities has caused rental income to increase over the last five years – from £588k in 2012/13 to £639k in 2016/17.

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 242 44 54 340

CCLA 16 - 34 50

258 44 88 390

Gains on revaluations/disposals 664 Management fees (32)

Total return on other investments 1,022

Return on other investments £000

Market value of other investments 8,071 Return 12.7 % Composite index agreed with Cazenove 16. 5%

Political events were the main focus of markets in the period with currencies absorbing most of the impact. Commodities and resources drove markets for the first nine months with a broader spectrum of companies leading the way into 2017. The income bias in the portfolio meant that in UK equities (the

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largest component) lagged the market which was reflected in the total return achieved of 14.8% versus the benchmark which rose 16.5%. Over a five year period the total return achieved was 9.7% versus the Benchmark of 8.4%.

At 31 March 2017 our total investments excluding direct property holdings totalled £8.08m, of which 62% were held in listed equity funds, 11% in fixed interest, and 27% 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:

201 2/13 2013/14 2014/15 2015/16 2016/17 £000 £000 £000 £000 £000 Total income 5,174 5,299 8,868* 7,025* 7,396* WCEL covenant to Chapter 394 403 374 433 501 Other visitor income 558 600 603 600 662 Rental income 588 635 607 651 639 Investment income 346 366 384 377 390 Cathedral repairs/upkeep 910 977 853 1,004 1,128 Other expenditure on mission 1, 878 1,701 4,889** 4, 315 ** 4,093** General Fund result (before capital gains) 33 12 13 24 71

* Includes grants of £2,469k received relating to the Cathedral projects. (2015/16 included grants of £2,841k) ** Includes expenditure of £2,469k relating to the Cathedral projects. (2015/16 included expenditure of 2,772k)

5.65.65.6 Commentary on the 2012016666////11117777 results The Dean and Chapter present the audited accounts for the year to 31 March 2017. The year finished with an unrestricted operating surplus for the year of £71k, having designating £569k of legacy and donation income to the Deanery Maintenance Fund, and represents another year in a series of financial surpluses. Commentary on the key financial indicators is set out below.

WCEL Covenant to Chapter

All net 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 £501k, up £68k from the £433k achieved in 2015/16. This result is the highest achieved in the trading company history, following on from a record year last year.

This year included the results from the Ice Rink, which in previous years was a venture shared between the Cathedral and a business partner. This year we ran the Ice Rink alone, and made many improvements in the management and to the Ice Rink itself. We introduced a covered rink which allowed a more controlled environment for the skater, and encouraged early bookings, and repeat visits.

The Refectory and catering operation is currently outsourced to the catering company Kudos. This arrangement continues to give the cathedral benefits in income protection and maintains the high standards of quality and service. In the coming year the operation is coming to the end of its initial contract period of three years. Annual Report Statutory Supplement and Audited Accounts - Page 20

Visitor numbers and Income

The major works programme continues, and we have sought measures to minimise disruption and inconvenience for visitors.

Visitor numbers saw a strong increase of 23,500 (+7%) this year to 339,505, whilst paying visitor numbers encouragingly increased by 4% to 113,765.

The Entrance Desk income received was up (by £62k) to £662k in total. The Annual entrance fee to the Cathedral changed to £7.95, and was the first increase in three years. This represents a charge of 2p per day.

Voluntary Income, Grants receivable and Income from appeals and fundraising

Income from congregational collections, giving and donations increased slightly to £112k. Gift Aid continues to make a significant and important contribution of £84k. The Deanery Bookstall contributed an outstanding £45k and the Cloisters shop £32k.

Grants receivable in 2016/17 were £2,659k (compared to £3,033k in 2015/16). 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 £2,469k (£2,841k in 2015/16)

During the year legacies were received from three estates totalling £53k. Additionally we have been advised of a legacy from an estate and have recognised an amount of £500k in the accounts. £533k of these legacies have been designated to the Deanery Refurbishment Fund, and the remainder to music costs.

Property Income

Property rental income received decreased to £639k, from £651k in the previous year, and was due to the temporary occupation of a rental property by the Dean whilst we undertake vital repairs to the Deanery. All properties were occupied at the year end, and we have experienced low levels of unoccupied property periods

Investment Income

Investment income received increased slightly in the year to £390k from £377k in the previous year.

Volunteer time

The Cathedral continues to benefit from the vast amount of time and effort from its volunteers. On an average day volunteers give 180 hours of their time, over a broad spectrum of different duties around the cathedral. On average we have approximately 772 volunteers.

Designated funds

The value of designated funds increased to £1.2m from £0.2m. The Deanery maintenance fund now stands at £1.0m, with this sum coming from legacies to the value of £533k, and a transfer from Unrestricted Reserves for £427k.

Restricted funds

During the year a review of expenditure from the Unrestricted fund on the maintenance of the Cathedral over a number of previous years was performed, which resulted in a retrospective charge to

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the AEV Day Deceased Restricted fund for the Cathedral maintenance, and a subsequent transfer into the Unrestricted fund for Cathedral maintenance.

Endowment funds

In previous years the properties held around the Cathedral have been classed as Restricted Properties. This year Chapter have reclassified those properties as Endowment properties, in line with guidance provided by the Church Commissioners.

Therefore there was an increase in the value of Endowment Funds to £40.9m (up £0.8m from £40.1m in 2015/16). The increase in funds was due to the annual review of the overall property portfolio, which increased the property book value by £0.2m. Meanwhile the investment property portfolio increased in value by £0.5m. The property value represents £34.9m of the Endowment fund.

Expenditure

Spend on the Cathedral projects continues with expenditure of £2.5m for 2016/17 (2015/16: £2.8m). The main areas of spend in the current year were on the presbytery windows, conservation of the mortuary chests, Winchester bible conservation, cathedral lighting, and major conservation and restoration works in the South Transept.

Expenditure decreased this year on Precincts, security, and gardens upkeep to £302k, from £408k in the previous year. This year we invested £80k on pathways outside the cathedral, and within Major repairs and restoration we spent £253k on the Deanery refurbishment.

Investing in our people

The Cathedral continues its policy of moving all staff toward the Living Wage Foundations Living Wage.

666 Plans for future periods

We are on course to commence the building of our three new exhibitions – The Birth of a Nation, Decoding the Stones, and Kings and Scribes in Spring 2018 with completion forecast for Winter 2018.

WW1 project – Windows North Transept is now underway.

The Quinquennial Report on the Cathedral will take place this year and Chapter will be able to prioritise the conservation and planned maintenance programme moving forward for the next five years and projected six to ten years forecast.

The essential works required for the Deanery (Dean’s accommodation, bookstall and the Deanery flat) is scheduled for completion by Spring 2018.

The current catering contract is being retendered and a new contract will be awarded with effect from the 8 August 2017.

Chapter will redefine its mission and ministry under the leadership and direction of Dean Catherine for the next decade.

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777 AAAuditedAudited Accounts

AUDITED ACCOUNTS For the year ended 31 March 2017

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 The Chapter of Winchester Cathedral for the year ended 31 March 2017 which comprise 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Respective responsibilities of the Chapter and auditor As explained more fully in the Statement of the Chapter’s Responsibilities, set out on page 24, the members are responsible for the preparation of the financial statements and for being satisfied that they 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 Ethical Standards for Auditors. This report is made solely to the Chapter’s members, as a body. Our audit work has been undertaken so that we might state to the Chapter members those matters we are prepared 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 members of Chapter as a body, for our audit work, for this report, or for the opinions we have formed. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’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 2017, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been properly 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 the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the Annual Report is inconsistent in any material respect with the financial statements; or • sufficient account records have not been kept; 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. Mazars LLP Chartered Accountants and Statutory Auditor Poole

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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 dated 31 March 2017.

The principal accounting policies 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. 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, and properties held within the Cathedral Close of which the reserve arising on the revaluations of property is deemed to be an endowment fund. 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.

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 those 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 probable that it will be received.

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 purposes, and costs of managing the investment properties.

"Resources expended on Charitable activities" comprises costs of the Cathedral's ministry, upkeep of the Cathedral fabric and precincts, education and outreach, and other expenditure which includes the costs of meeting the constitutional and statutory requirements of the Cathedral and its subsidiary companies.

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"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 previous year’s valuation adjusted for the average property price movement during the period.

Based on guidance from the Church Commissioners, Chapter have concluded that the Cathedral Close properties should be accounted as Endowed properties rather than Restricted. Properties outside the Cathedral Close are treated as Unrestricted properties. This has meant that the prior year accounts have been restated for this change.

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.

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 Retail 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. Annual Report Statutory Supplement and Audited Accounts - Page 27

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.

Remuneration There are many factors in determining and setting the policy with regard to the remuneration of all lay members of Winchester Cathedral staff.

There is an established remuneration panel which convenes annually and the membership includes; The Receiver General, Head of Finance and Head of Personnel. Chapter sets the overall pay budget ensuring affordability is addressed.

The remuneration panel takes into account statutory obligations, legislation, inflation, and market location trends. We also source bench marking information from various bodies to ensure we receive insight and an independent perspective. Affordability is a key feature and both retention of staff, and business operational needs are factors that are also considered. We aim to maintain a mid-quartile market position.

During the pay year, both line management and individuals can make direct representations that can be considered by the remuneration committee.

The primary objective of setting pay is to ensure that Winchester Cathedral provides a level that will attract, retain and motivate staff.

All staff receive a personal letter annually from the Receiver General setting out their new pay terms.

Annual Report Statutory Supplement and Audited Accounts - Page 28

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:

• Management have provided for legacy income of £500k based on their estimate of expected income that will be received from the estate of Thomas Butt. • In the years where no formal property valuation occurs, movements in the valuation are estimated based on available market information.

Annual Report Statutory Supplement and Audited Accounts - Page 29

Consolidated statement of financial activities

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2017 2017 2017 2017 2017 2016 £000 £000 £000 £000 £000 £000 (note 26) (restated) Incoming resources 1 Voluntary income 438 569 170 - 1,177 694 Grants receivable 5 - 2,654 - 2,659 3,033 Charges and fees arising in the course of charitable activities 108 - - - 108 91 Income from activities generating funds 2,423 - - - 2,423 2,179 Income from property and investments 1,029 - - - 1,029 1,028

Total incoming resources 4,003 569 2,824 - 7,396 7,025 Cost of generating funds 3,5 1,595 - 8 - 1,603 1,497

Net incoming resources available for charitable activities 2,408 569 2,816 - 5,793 5,528

Resources expended on charitable 4 activities Ministry 962 - 248 - 1,210 1,161 Cathedral and precincts upkeep 1,001 9 106 - 1,116 1,004 Education and outreach 185 - 40 - 225 198 Other expenditure on charitable activities 189 - 2,469 - 2,658 2,956

2,337 9 2,863 - 5,209 5,319

Net incoming resources 71 560 (47) - 584 209 Gross transfers between funds 28 - 427 (427) - - -

Non-investmentOther recognised property gains ------Investment property - - - 213 213 1,201 Investments 12 21 101 530 664 (370)

12 21 101 743 877 831 Net movement in funds 83 1,008 (373) 743 1,461 1,040

Fund balances brought forward 26 1,404 237 1,595 40,144 43,380 42,340

Fund balances carried forward 1,487 1,245 1,222 40,887 44,841 43,380

Annual Report Statutory Supplement and Audited Accounts - Page 30

Consolidated balance sheet

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2017 2017 2017 2017 2017 2016 £000 £000 £000 £000 £000 £000 (note 26) Fixed assets (restated) Investment assets Property 9 80 - - 18,457 18,537 18,324 Investments 10 128 745 1,222 5,976 8,071 7,363

208 745 1,222 24,433 26,608 25,687

Non-investment assets Property 11 770 - - 16,454 17,224 17,224 Plant & equipment 12 128 - - - 128 171

898 - - 16,454 17,352 17,395

Total fixed assets 1,106 745 1,222 40,887 43,960 43,082

Current assets Stocks 126 - - - 126 133 Debtors 13 224 500 196 - 920 763 Cash at bank and in hand 836 - 2,396 - 3,232 3,143

1,186 500 2,592 - 4,278 4,039

Current liabilities 14 (805) - (2,592) - (3,397) (3,741)

Net current assets 381 500 - - 881 298

Total assets less total liabilities 1,487 1,245 1,222 40,887 44,841 43,380

Funds General fund 18 868 - - - 868 1,404 Property revaluation reserve15,18 619 - - 33,121 33,740 32,908 Property projects reserve 15 - - - 1,361 1,361 1,361 Music fund 15 - - - 2,986 2,986 2,734 Other funds 15,16,17 - 1,245 1,222 3,419 5,886 4,973

1,487 1,245 1,222 40,887 44,841 43,380

The financial statements were approved by the Chapter at their meeting on 20 July 2017 and are signed on their behalf by:

The Very Reverend Catherine Ogle - Dean

Mrs Annabelle Boyes MBE, CDir, FIOD - Receiver General & Canon Treasurer

Annual Report Statutory Supplement and Audited Accounts - Page 31

Balance Sheet - Dean & Chapter only

Unrestricted Designated Restricted Endowment Total Total

funds funds funds funds funds funds Note 2017 2017 2017 2017 2017 2016 £000 £000 £000 £000 £000 £000 (note 26) Fixed assets (restated) Investment assets Property 9 80 - - 17,842 17,922 17,709 Investments 10 138 745 1,222 5,976 8,081 7,373

218 745 1,222 23,818 26,003 25,082

Non-investment assets Property 11 770 - - 16,149 16,919 16,919 Plant & equipment 12 20 - - - 20 28

790 - - 16,149 16,939 16,947

Total fixed assets 1,008 745 1,222 39,967 42,942 42,029

Current assets Stocks 17 - - - 17 22 Debtors 13 448 500 196 - 1,144 1,080 Cash at bank and in hand 819 - 2,396 - 3,215 3,098

1,284 500 2,592 - 4,376 4,200

Current liabilities 14 (719) - (2,592) - (3,311) (3,683)

Net current assets 565 500 - - 1,065 517

Total assets less current liabilities 1,573 1,245 1,222 39,967 44,007 42,546

Funds General fund 18 954 - - - 954 788 Property revaluation reserve15,18 619 - - 32,201 32,820 34,051 Property projects reserve 15 - - - 1,361 1,361 1,361 Music fund 15 - - - 2,986 2,986 2,734 Other funds 15,16,17 - 1,245 1,222 3,419 5,886 4,973

1,573 1,245 1,222 39,967 44,007 43,907

The financial statements were approved by the Chapter at their meeting on 20 July 2017 and are signed on their behalf by:

The Very Reverend Catherine Ogle - Dean

Mrs Annabelle Boyes MBE, CDir, FIOD - Receiver General & Canon Treasurer

Annual Report Statutory Supplement and Audited Accounts - Page 32

Consolidated cash flow statement

Note 2017 2017 2016 2016 £000 £000 £000 £000

Net incoming resources before revaluations and disposal of investments 584 209 Less income from property and investments (1,029) (1,028) Add property management costs and investment manager costs. 45 49 Depreciation charges 71 108 Decrease in stocks 7 9 (Increase) in debtors (157) (12) (Decrease) / increase in creditors (343) 1,326

Net cash (outflow) / inflow from operating activities (822) 661

Returns on investments Rents received net of costs 627 635 Interest and dividends received 356 346

983 981

Capital expenditure and financial investment Sale proceeds of investments less amounts reinvested (44) 16 Purchases of furniture and equipment (28) (87)

(72) (71)

Cash inflow before management of liquid resources and financing 89 1,571

Management of liquid resources Net decrease in liquid resources 19 - (32)

Increase in cash 19 89 1,539

Annual Report Statutory Supplement and Audited Accounts - Page 33

Notes to the financial statements

1 Consolidated incoming resources

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2017 2017 2017 2017 2017 2016 £000 £000 £000 £000 £000 £000 Voluntary income Congregational collections and giving 73 - 39 - 112 111 Donations 242 30 17 - 289 345 Income from appeals and fundraising 19 6 67 - 92 69 Tax recoverable under Gift Aid 84 - - - 84 84 Income from Friends and local trusts - - 47 - 47 66 Legacies 20 533 - - 553 19

438 569 170 - 1,177 694

Grants receivable Church Commissioners - - 135 - 135 139 Heritage Lottery Fund - - 2,469 - 2,469 2,841 Other revenue and capital grants 5 - 50 - 55 53

5 - 2,654 - 2,659 3,033

Charges and fees arising in the course of charitable activities Facility and other fees 108 - - - 108 91

Income from activities generating funds Charges to visitors 662 - - - 662 600 Gross income of shop, refectory and other trading activities 1,761 - - - 1,761 1,579 2,423 - - - 2,423 2,179 Income from property and investments Income from investment property 639 - - - 639 651 Income from other investments 390 - - - 390 377

1,029 - - - 1,029 1,028

Total incoming resources 4,003 569 2,824 - 7,396 7,025

Annual Report Statutory Supplement and Audited Accounts - Page 34

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.

2017 2016 £000 £000

Turnover 1,761 1,579

Cost of sales (829) (765)

Gross profit 932 814

Other operating charges (431) (381) Other operating income - -

Operating profit 501 433

Interest receivable - - 501 433 Profit for the financial year

The Net Assets of Winchester Cathedral Enterprises Limited at 31 March 2017 840 840

The profits from WCEL were donated to Chapter for £501k (2016: £433k)

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 2017 it had net assets of £1 (2016 : £1).

3 3 Cost of generating funds Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2017 2017 2017 2017 2017 2016 £000 £000 £000 £000 £000 £000 Costs of facilities for visitors 91 - - - 91 81 Costs of services directly recoverable 19 - 8 - 27 17 Gross costs of shop, refectory and other trading activities 1,260 - - - 1,260 1,146 General marketing costs 106 - - - 106 142 Costs of appeals and fund raising 76 - - - 76 64 Investment property costs 11 - - - 11 16 Investment managers fees 32 - - - 32 31

1,595 - 8 - 1,603 1,497

Annual Report Statutory Supplement and Audited Accounts - Page 35

4 Resources expended on charitable activities Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2017 2017 2017 2017 2017 2016 Ministry £000 £000 £000 £000 £000 £000 Clergy stipends and working expenses 52 - 105 - 157 165 Clergy housing costs 43 - - - 43 44 Clergy support costs 77 - - - 77 65 Services and music 790 - 143 - 933 887

962 - 248 - 1,210 1,161

Cathedral and precincts upkeep Major repairs and restoration 388 - 13 - 401 203 Maintenance and interior upkeep 239 - 62 - 301 272 Cathedral insurance 108 - - - 108 102 Precincts, security and gardens upkeep 262 9 31 - 302 408 Support costs 4 - - - 4 19

1,001 9 106 - 1,116 1,004

Education and outreach Educational activities 89 - - - 89 78 Archives and library 86 - - - 86 82 Charitable and other giving 10 - 40 - 50 38

185 - 40 - 225 198 Other expenditure on charitable activities Heritage Lottery Fund Project - - 2,469 - 2,469 2,772 Irrecoverable VAT 22 - - - 22 26 Governance costs 167 - - - 167 158

189 - 2,469 - 2,658 2,956

Total resources expended on charitable activities 2,337 9 2,863 - 5,209 5,319

5 5 Support costs Direct Support Total Direct Support Total costs costs costs costs 2017 2017 2017 2016 2016 2016 £000 £000 £000 £000 £000 £000

Costs of generating funds 1,530 73 1,603 1,429 68 1,497 Ministry 962 248 1,210 959 202 1,161 Cathedral and precincts upkeep 896 220 1,116 808 196 1,004 Education and outreach 180 45 225 158 40 198 Other expenditure on mission 2,658 - 2,658 2,798 - 2,798

6,227 586 6,812 6,152 506 6,658

6 Governance costs 2017 2016 £000 £000 Auditors' remuneration: Audit services 19 18 Accountancy and other services - - Taxation advice 1 1 Governance and strategic planning 147 139

167 158

Annual Report Statutory Supplement and Audited Accounts - Page 36

7 7 Employees Staff costs during the year were as follows: 2017 2016 £000 £000 Salaries and stipends 1,564 1,557 Social security costs 121 117 Other pension costs 105 79

1,790 1,753

The average number of employees on a full time equivalent basis during the year was as follows:

2017 2016 Cathedral staff 15 16 Administration 13 13 Education 3 3 Maintenance 12 15 Shop and Refectory 6 5 Visitor services 5 5

54 57

One member of the Chapter, the Receiver General, received remuneration during the year of £95,000 (2016: £90,000). 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 £2,614 (2016: £6,259) 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:

2017 2016 £000 £000

Audit services 19 18 Accountancy and other services - - Taxation advice 1 1

20 19

Annual Report Statutory Supplement and Audited Accounts - Page 37

9 Investment property

Consolidated Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000 Valuation At 1 April 2016 (restated - see note 26) 80 - - 18,244 18,324 Change in use - - - - - Additions - - - - - Change in market value - - - 213 213

At 31 March 2017 80 - - 18,457 18,537

Chapter Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000 Valuation At 1 April 2016 (restated - see note 26) 80 - - 17,629 17,709 Change in use - - - - - Additions - - - - - Change in market value - - - 213 213

At 31 March 2017 80 - - 17,842 17,922

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 2017 Chapter carried out an interim valuation of the properties.

Annual Report Statutory Supplement and Audited Accounts - Page 38

10 10 Investments

Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000

Investments at market value 1 April 2016 (restated - see note 26) 131 236 1,540 5,408 7,315 Additions 1 1 7 35 44 Proceeds from disposals - - - - - Transfers (17) 485 (433) (35) - Net increase on revaluations 12 21 101 530 664

Investments at market value 31 March 2016 127 743 1,215 5,938 8,023

Uninvested Cash 1 2 7 38 48

Market Value Carried Forward (Consolidated) 128 745 1,222 5,976 8,071

Investments in Group Undertaking at Net Asset Value 10 - - - 10

Investments (Chapter) 138 745 1,222 5,976 8,081

2017 2016 £000 £000

Equity funds 5,018 4,443 Fixed interest funds 853 842 Portfolio funds 440 400 Property funds 737 741 Other managed funds 975 889 8,023 7,315

Other liquid resources - - Cash fund 48 48 Shares in subsidiary companies 10 10

8,081 7,373

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 39

11 11 Non-investment property Endowment 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 2016 (restated - see note 26) 770 - - 1,361 15,093 17,224 Additions ------Depreciation ------Change in market value ------

At 31 March 2017 770 - - 1,361 15,093 17,224

Endowment 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 2016 (restated - see note 26) 770 - - 1,361 14,788 16,919 Additions ------Depreciation ------Change in market value ------

At 31 March 2017 770 - - 1,361 14,788 16,919

Non-investment properties are held and used as follows:

Freehold At 1 April 2016 £000 For Cathedral administration and workshops 1,338 For Cathedral clergy and staff housing 9,910 For the Deanery 3,500 For Assets in course of construction 1,361 For the education centre 500 Leased to Winchester Cathedral Enterprises Limited 310 Chapter total 16,919 Eliminated on consolidation (310) For Cathedral trading activities 615

Consolidated total 17,224

Freehold At 31 March 2017 £000 For Cathedral administration and workshops 1,338 For Cathedral clergy and staff housing 9,910 For the Deanery 3,500 For Assets in course of construction 1,361 For the education centre 500 Leased to Winchester Cathedral Enterprises Limited 310

Chapter total 16,919 Eliminated on consolidation (310) For Cathedral trading activities 615

Consolidated total 17,224

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 2017 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 40

12 12 Cathedral plant and equipment

Consolidated Chapter £000 £000 Cost At 1 April 2016 691 177 Additions 28 9 Disposals (52) (52)

At 31 March 2017 667 134

Depreciation At 1 April 2016 520 149 Charge for the year 71 17 Disposals (52) (52)

At 31 March 2017 539 114

Net book value

.At 31 March 2017 128 20

At 31 March 2016 171 28

13 13 Debtors Consolidated Chapter 2017 2016 2017 2016 £000 £000 £000 £000

Winchester Cathedral Enterprises Limited - - 259 385 Social security and other taxes 66 76 66 94 Other debtors 820 527 800 459 Prepayments 34 160 19 142

920 763 1,144 1,080

14 14 Current liabilities Consolidated Chapter 2017 2016 2017 2016 £000 £000 £000 £000

Trade creditors 334 787 322 769 Social security and other taxes 41 19 38 34 Other creditors 77 177 77 177 Accruals 2,945 2,758 2,874 2,703

3,397 3,741 3,311 3,683

Annual Report Statutory Supplement and Audited Accounts - Page 41

15 15 Endowment funds

Consolidated At 1 April Net Investment At 31 March 2016 Incoming/ gains/ 2017 (restated) (outgoing) (losses) in resources the year £000 £000 £000 £000 Appeal fund: Fabric 2,064 - 199 2,263 Music 71 - - 71 Staff 25 - - 25

2,160 - 199 2,359 Music 2,734 - 252 2,986 Properties revaluation (restated 1 April 2016) 32,908 - 213 33,121 Property projects 1,361 - - 1,361 Permanent endowment 862 - 79 941 John and Kathleen Kyle Memorial Fund for Lay Clerks 80 - - 80 Roger Bruce Ellery 39 - - 39

40,144 - 743 40,887

Chapter At 1 April Net Investment At 31 March 2016 Incoming/ gains/ 2017 (restated) (outgoing) (losses) in resources the year £000 £000 £000 £000 Appeal fund: Fabric 2,064 - 199 2,263 Music 71 - - 71 Staff 25 - - 25

2,160 - 199 2,359 Music 2,734 - 252 2,986 Properties revaulation (restated 1 April 2016) 31,988 - 213 32,201 Property projects 1,361 - - 1,361 Permanent endowment 862 - 79 941 John and Kathleen Kyle Memorial Fund for Lay Clerks 80 - - 80 Roger Bruce Ellery 39 - - 39

39,224 - 743 39,967

Annual Report Statutory Supplement and Audited Accounts - Page 42

16 16 Restricted funds

Consolidated and Chapter At 1 April Net Investment At 31 March 2016 Incoming/ gains/ 2017 (restated) (outgoing) (losses) in resources the year £000 £000 £000 £000

AEV Day deceased 1,158 (451) 101 808 Fabric 133 - - 133 Organ 116 - - 116 Fabric and worship 45 - - 45 Cathedral charitable 43 (2) - 41 Library 28 - - 28 Thomas-Davies 12 (1) - 11 Girls’ choir 8 1 - 9 Deanery Garden 7 - - 7 Venerable Altar/ Swags 5 - - 5 Woodhouse Trust 5 - - 5 Deanery furnishings 18 (18) - - Others under £5,000 17 (3) - 14

1,595 (474) 101 1,222

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. Included in the Net Incoming / (outgoing) resources, is a transfer between funds of £427k. Fabric - Funds restricted to the working repair and conservation of the Fabric of the Cathedral Organ - Funds to repair and maintain the Organ Fabric and worship - Funds restricted to the internal fabric relating worship and liturgy in the Cathedral Cathedral charitable - Income provided by donation to the Cathedral to support other charitable causes 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 Girls' Choir - Funds to support the Girls' choir Deanery garden - Funds restricted to the repair and maintenance of the Deanery garden 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 Others under £5,000 - Monies given for specific activities or projects that are not substantial in balance, income or expenditure

17 17 Designated funds Consolidated and Chapter At 1 April Net Investment At 31 March 2016 Incoming/ gains/ 2017 (outgoing) (losses) in £000 £000 £000 £000

Kings & Scribes Project Fund 39 - 4 43 Deanery Maintenance Fund 89 951 8 1,048 Sound & Light Fund 66 - 6 72 Organ Fund 43 - 4 47 Music library - 30 - 30 Stonemason Festival - 5 - 5

237 986 22 1,245

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 Music library - Funds for the music library Stonemasons Festival - Funds to support the stonemasons festival Annual Report Statutory Supplement and Audited Accounts - Page 43

18 18 Unrestricted funds Consolidated At 1 April Net Investment At 31 March 2016 Incoming/ gains/ 2017 (restated) (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 785 71 12 868 Property revaluation reserve (restated - see note 26) 619 - - 619

1,404 71 12 1,487

Chapter At 1 April Net Investment At 31 March 2016 Incoming/ gains/ 2017 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 871 71 12 954 Property revaluation reserve (restated - see note 26) 619 - - 619

1,490 71 12 1,573

19 19 Reconciliation of net cash flow to movement in net funds 2017 2016 £000 £000 Increase in cash 89 1,539 Increase in liquid resources - 28

Increase in net funds 89 1,567 Net funds at 1 April 2016 3,191 1,624

Net funds at 31 March 2017 3,280 3,191

20 20 Analysis of changes in net funds At 1 April Cash flow At 31 March 2016 2017 £000 £000 £000 Cash at bank and in hand 3,143 89 3,232 Cash balances included in investments 48 - 48

3,191 89 3,280

2 1 21 Capital commitments

On the 24 March 2017 the Cathedral entered into a contract for repairs to the Deanery to a value of £1.5m. There were no capital commitments on 31 March 2016.

22 22 Contingent assets/liabilities

The Chapter is aware of its obligations in relation to Chancel liabilities. The Chapter are aware of one such liability. Whilst the quantum of this cannot be reliably measured, a provision of £3,556 has been made in the financial statements. There were no contingent assets or liabilities at 31 March 2017 or 31 March 2016.

Annual Report Statutory Supplement and Audited Accounts - Page 44

23 23 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 2017, Winchester Cathedral had no active members, and 2 deferred members in the Pension Builder Classic section. Winchester Cathedral had 57 active members and 8 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 2013, the PBS was in surplus on an ongoing funding basis. A formal valuation of the PBS is being carried out as at December 2016 but, as at the end of March 2017, 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 £97,227 (2016 £85,081), 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 2017 the Chapter had 1 active members and 12 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 actuarial 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 actuarial 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 45

23 23 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: 2017 2016 £000 £000 Balance Sheet liability at 1 April 61 150

Deficit contribution paid (63) (71) Interest cost (recognised in SoFA) 1 1 Remaining charge to the balance sheet liability*(recognised in SoFA) 1 (19)

Balance Sheet liability at 31 March - 61

* 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:

Dec-16 Dec-15 Dec-14 Discount rate 0.00% 1.30% 1.10% The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of that employer's pension liabilities. The next valuation of the scheme is being carried out as at December 2016. Chapter are not aware of the Results of this valuation.

24 24 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

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24 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-17 31-Mar-17 31-Mar-17 £000 £000 £000 Gross Income 317 134 -

Net incoming/(outgoing) resources for the year 69 550 -

Net Movement in Funds 88 550 -

Amounts paid or payable to the Cathedral 162 505 -

Gross Assets 641 2,329 564

Net Assets 519 2,323 564

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.

25 Related party transactions

During the year the Chapter received £505k (2016: £1,505k) from The Winchester Cathedral Trust. During the year the Chapter received £162k (2016: £155k) from The Friends of Winchester Cathedral in grants. During the year the Chapter received £134k (2016: £134k) from The Pilgrims' School (Limited by Guarantee) in respect of rent. During the year the Chapter paid £230k (2016: £228k) in respect of Choristers' school fees to The Pilgrims' School (Limited by Guarantee). During the year the Chapter paid £3k (2016: £3k) to Sophie Hacker, the wife of a Chapter member Canon Roland Riem, in respect of expenditure on arts and exhibitions

26 Restatement of Audited Accounts

Based on guidance issued by the Church Commissioners, Chapter have concluded that properties within the Cathedral Close, should be accounted as endowment properties rather than restricted as previously advised, and properties outside the close as Unrestricted properties. There is no overall impact on the audited accounts, but has meant that the previous years accounts have been restated with amended funds balances. Chapter have also reassessed the classification of properties between investment and non-investment assets. This resulted in a prior year adjustment of £140k which has impacted on funds brought forward as at 1 April 2015.

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27 Analysis of prior year total funds

Consolidated statement of financial activities Based on guidance issued by the Church Commissioners, Chapter have concluded that properties within the Cathedral Close, should be accounted as endowment properties rather than restricted as previously advised, and properties outside the close as Unrestricted properties. There is no overall impact on the audited accounts, but has meant that the previous years accounts have been restated with amended funds balances. Chapter have also reassessed the classification of properties between investment and non-investment assets. This resulted in a prior year adjustment of £140k which has impacted on funds brought forward as at 1 April 2015.

Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2016 2016 2016 2016 2016 £000 £000 £000 £000 £000 restated restated restated Incoming resources Voluntary income 420 89 185 - 694 Grants receivable 5 - 3,028 - 3,033 Charges and fees arising in the course of charitable activities 91 - - - 91 Income from activities generating funds 2,179 - - - 2,179 Income from property and investments 1,028 - - - 1,028

Total incoming resources 3,723 89 3,213 - 7,025 Cost of generating funds 1,487 - 10 - 1,497

Net incoming resources available for charitable activities 2,236 89 3,203 - 5,528

Resources expended on charitable activities Ministry 903 - 258 - 1,161 Cathedral and precincts upkeep 956 - 48 - 1,004 Education and outreach 169 - 29 - 198 Other expenditure on charitable activities 184 - 2,772 - 2,956

2,212 - 3,107 - 5,319 Net incoming resources 24 89 96 - 209

Other recognised gains Investment property - - - 1,201 1,201 Investments (37) (7) (29) (297) (370)

(37) (7) (29) 904 831

Net movement in funds (13) 82 67 904 1,040 Fund balances brought forward 1,417 155 1,528 39,240 42,340

Fund balances carried forward 1,404 237 1,595 40,144 43,380

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27 Analysis of prior year total funds (continued)

Consolidated balance sheet

Based on guidance issued by the Church Commissioners, Chapter have concluded that properties within the Cathedral Close, should be accounted as endowment properties rather than restricted as previously advised, and properties outside the close as Unrestricted properties. There is no overall impact on the audited accounts, but has meant that the previous years accounts have been restated with amended funds balances. Chapter have also reassessed the classification of properties between investment and non-investment assets. This resulted in a prior year adjustment of £140k which has impacted on funds brought forward as at 1 April 2015.

Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2016 2016 2016 2016 2016 £000 £000 £000 £000 £000 restated restated restated Fixed assets Investment assets Property 80 - - 18,244 18,324 Investments 136 237 1,544 5,446 7,363

216 237 1,544 23,690 25,687

Non-investment assets Property 770 - - 16,454 17,224 Plant & equipment 171 - - - 171

941 - - 16,454 17,395

Total fixed assets 1,157 237 1,544 40,144 43,082

Current assets Stocks 133 - - - 133 Debtors 432 - 331 - 763 Cash at bank and in hand 821 - 2,322 - 3,143

1,386 - 2,653 - 4,039

Current liabilities (1,139) - (2,602) - (3,741)

Net current assets / (liabilities) 247 - 51 - 298 Total assets less total liabilities 1,404 237 1,595 40,144 43,380

Funds General fund 785 - - - 785 Property revaluation reserve 619 - - 32,908 33,527 Property projects reserve - - - 1,361 1,361 Music fund - - - 2,734 2,734 Other funds - 237 1,595 3,141 4,973

1,404 237 1,595 40,144 43,380

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27 Analysis of prior year total funds (continued) Balance Sheet - Dean & Chapter only

Based on guidance issued by the Church Commissioners, Chapter have concluded that properties within the Cathedral Close, should be accounted as endowment properties rather than restricted as previously advised, and properties outside the close as Unrestricted properties. There is no overall impact on the audited accounts, but has meant that the previous years accounts have been restated with amended funds balances. Chapter have also reassessed the classification of properties between investment and non-investment assets. This resulted in a prior year adjustment of £140k which has impacted on funds brought forward as at 1 April 2015.

Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2016 2016 2016 2016 2016 £000 £000 £000 £000 £000 restated restated restated Fixed assets Investment assets Property 80 - - 17,629 17,709 Investments 146 237 1,544 5,446 7,373

226 237 1,544 23,075 25,082

Non-investment assets Property 770 - - 16,149 16,919 Plant & equipment 28 - - - 28

798 - - 16,149 16,947

Total fixed assets 1,024 237 1,544 39,224 42,029

Current assets Stocks 22 - - - 22 Debtors 749 - 331 - 1,080 Cash at bank and in hand 776 - 2,322 - 3,098

1,547 - 2,653 - 4,200

Current liabilities (1,081) - (2,602) - (3,683)

Net current assets / (liabilities) 466 - 51 - 517 Total assets less total liabilities 1,490 237 1,595 39,224 42,546

Funds General fund 871 - - - 871 Property revaluation reserve 619 - - 31,988 32,607 Property projects - - - 1,361 1,361 Music fund - - - 2,734 2,734 Other funds - 237 1,595 3,141 4,973

1,490 237 1,595 39,224 42,546

28 Gross transfers between funds

During the year Chapter has transferred from the Restricted fund to the Unrestricted fund costs which were previously recognised out of Unrestricted funds, which should have been recognised under Restricted funds. These amounted to £427k, Chapter have Designated these funds to the Deanery Maintenance Designated fund.

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