ANNUAL REPORT

STATUTORY SUPPLEMENT AND AUDITED ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2014

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 2013/14

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 ...... 7 333 Legal and administrative information ...... 9 3.1 Legal name of the Cathedral ...... 9 3.2 Chapter Office ...... 9 3.3 Chapter ...... 9 3.4 Officers of the Foundation ...... 9 3.5 Council ...... 9 3.6 College of Canons ...... 10 3.7 Other key appointments ...... 11 3.8 Finance and Investment Advisory Committee ...... 11 3.9 Fabric Advisory Committee ...... 11 3.10 Winchester Cathedral Enterprises Ltd ...... 11 3.11 Auditors ...... 12 3.12 Bankers and other professional advisers ...... 12 3.13 Volunteer Section Heads ...... 13 444 Structure, governance and management ...... 13 4.1 Governing Statute ...... 13 4.2 Relationship with the Diocese of Winchester ...... 13 4.3 Organisational structure – the corporate body ...... 13 4.4 Organisational structure – other key committees and groups ...... 14 4.5 Other organisations associated with the work of the Cathedral ...... 14 4.6 Chapter appointments and training ...... 15 4.7 Chapter’s financial responsibilities ...... 15 4.8 Clergy and senior staff changes ...... 15 4.9 Investment powers...... 15 4.10 Public Benefit ...... 16 4.11 Risk...... 16 555 Financial Review ...... 16 5.1 Reserves Policy ...... 16 5.2 Investment Policy ...... 16 5.3 Investment performance ...... 17 5.4 Cathedral maintenance plan ...... 18 5.5 Five-year trends ...... 18 5.6 Commentary on the 2013/14 results ...... 18 666 Plans for future periods ...... 20 777 Audited Accounts ...... 21

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111 Aims and ObjeObjecccctitititivevevevessss

Winchester Cathedral is the teaching seat of the Bishop of Winchester The Rt Rev’d Timothy Dakin, and Mother Church to the Diocese of Winchester, ministering to people across 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

Cathedrals are centres of enormous opportunity, maintaining respect in our complex multicultural society. They wear their identity as places of faith whilst at the same time reaching out and welcoming those whose journey is less certain or plain different. That has been the continuing experience of Winchester Cathedral over the past twelve months.

The national award announced by the Heritage Lottery Fund in July 2013 is in many ways recognition of that potential. The Phase II funding grant amounts to £10.5m. Of course, we have to raise our matched funding and the Project has to be successfully managed to completion. However, the Award does acknowledge that an investment in Winchester Cathedral has the potential to impact across the wider community quite extensively through the Cathedral’s many networks and partnerships.

In July we heard that the Heritage Lottery Fund had awarded the Cathedral a grant of £10.5M towards a raft of inter-related development opportunities which will enable both conservation and new levels of engagement for the Cathedral’s Mission and Ministry. The Receiver General covers this in more detail on Page 5 of this Report. This news delivered a challenge to the Cathedral to raise the matched funding for the HLF Project and, additionally, the total funding for other essential development items outside of the Award. The overall Appeal target is £19.5M, of which £3.5M has yet to be raised. The Winchester Cathedral Trust under the Chairmanship of Dame Mary Fagan, Lord Lieutenant, is leading the fundraising. The Friends have very generously committed themselves to substantial funding of repair and conservation for the medieval windows. The endeavour to reach our target was much strengthened when we were able to announce in September that HRH The Earl of Wessex had agreed to become Royal Patron of the Appeal.

As the Bishop’s seat a Cathedral does have a dual responsibility, shadowing the Bishop’s own ministry. It is to be at the interface between the Christian community and the wider community. It seeks genuinely to make a significant contribution to the common good through its spiritual, community and moral capital. In many ways, it was that motivation which was recognised when Winchester Cathedral received its HLF Award. It is in this regard that the independence of Cathedrals in the way they have evolved in England is a particular strength. A Cathedral is also called to contribute very specifically to the life of the Diocese. It is to be part of a Diocesan Bishop’s missional call to grow the church, to heed the diocesan priorities and to present and articulate the faith in ways that reach a new generation often largely uninformed as regards the Christian story.

In the current year Bishop Tim has encouraged a growing number of Diocesan services and there has been planning for an increase in Diocesan confirmation services in the Cathedral. Through the Mother Church Advisory and Action Group continual reflection is given to opportunities for the Cathedral to better serve the parishes. The College of Canons is a resource for the flow of support between Cathedral and Diocese. The Cathedral adopted the 2014 Diocesan Lent Course for its study groups. The Cathedral Council has spent time reviewing the Chapter’s mission policy. In these and other ways the Cathedral engages with its diocese and the diocesan culture.

Two stunning tapestries for the High Altar (dorsal and frontal) were dedicated at the Winchester Festival Evensong on Sunday 7 July 2013 at which the preacher was the Reverend Richard Coles of BBC Radio 4. The tapestry commission was the outcome of a competition offered to selected artists and was adjudicated by a panel of judges. The competition was won by Maggie Hambling CBE who produced a powerful design inspired by breaking waves captured by day and by night, reminiscent of the text of Genesis 1. The tapestries were woven in France near Aubusson; they were from the same workshop as that responsible for the Coventry Cathedral tapestry. The project was supported by a number of benefactors. The tapestries hang for half the year, enabling the traditional frontals, the 17C bible and prayer book to have their turn.

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A project is underway to reorder the Nave of the Cathedral. This has arisen from a seminar chaired by Bishop David Stancliffe held in October 2011, which was followed by a process of consultation. The moving of the font to a position at the West End of the Cathedral requires a very long process of permissions which continued throughout the year and is as yet incomplete. A temporary wooden nave sanctuary designed by the Cathedral Architect after consultation with Chapter and produced in-house, is now in position. There is much more consultation to do before a permanent solution for a platform will enable us to move on to furnishings. The new arrangements are motivated by both seeking improved arrangements for worship and enabling visitors to better read the Christian intent of the building.

The Winchester Dialogues have proved popular. They were launched with interviews with Lord Hurd and Frank Field in September 2013. Veteran broadcaster and interviewer John Miller interviews the candidates for an hour, followed by 30 minutes questions from the floor. The event has been held at the Guildhall. There are three sets of four interviews planned which relate to faith and national life. The final set is not until the autumn 2014. Interviewees so far have included the Bishop of Winchester, PD James, Jon Snow, Lord Wakeham and Maria Miller. They bring in a modest income for the Appeal, but more importantly join up the Cathedral’s ministry with our development aspirations.

Canon Michael St John Channell stepped down as Precentor in September 2013 to move to a significant benefice in the Diocese and to be Bishop’s Rural Officer. He had been the “voice of the Cathedral” during his seven years of service and a well-established presence of whom the community were fond. It came as a great shock, therefore, that he died very suddenly only three months into his new task. A requiem funeral service was held in the Cathedral on Friday 14 March 2014, which filled the nave - itself a tribute to Canon Michael’s ministry.

Canon Sue Wallace was installed as Precentor and Sacrist on Sunday 2 March 2014. She comes from Leeds Minster, is enthusiastic about music and liturgy and with her husband Malcolm (and the dogs) is now well settled in the Close. She is quickly learning what it means to be a member of Chapter; that is, to be a member of the Cathedral’s governing body. The Bishop has also appointed George Medd to Chapter. George has been tower captain at the Cathedral and churchwarden at his local parish. He has been an IT Project Manager as well as undertaking a theological course at Sarum College. He comes with excellent credentials.

Sadly, we have to report the death of Canon Keith Walker whose funeral service was held in the Cathedral on Wednesday 21 August. A former Residentiary canon (1987-2003) he is particularly remembered for his interesting and beautifully crafted sermons and for his considerable expertise as connoisseur of art from which the Cathedral benefitted considerably. Chapter news does remind us that a Cathedral is an organic community in which we are all simply stewards for a time and part of something greater in the wisdom of God.

The Very Revd James Atwell, Dean of Winchester

2.22.22.2 The Receiver General

I am delighted to report, for a fourth successive year, that we have exceeded our budgetary targets and are able to record a positive financial outcome of £12k for the year. I am particularly delighted that we have been able to do so having made an exceptional provision of £60k for necessary repairs to the Deanery garden wall and, in addition, a contribution to a designated fund of £41k for repairs to the organ and for the new music library.

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It is ten years since we last had a flower festival ; our revived flower festival this year, Symphony of Flowers, proved a resounding success both in financial terms and as a major contribution to our mission of outreach to our many visitors and to the wider City and County communities and beyond. We welcomed over 15,000 visitors, many of whom had come some distance specifically to see the festival. The stunning displays which adorned the Cathedral were much admired and widely imitated.

The major event for the year was the submission of our Heritage Lottery Fund project documentation for Kings and Scribes – The Birth of a Nation in April and, following a nerve-racking wait of some four months, punctuated by a stream of questions and clarifications from the HLF team, a positive outcome in July. It is a tribute to the prodigious and far-seeing effort of our team, over some two years, that we were granted, at first pass, a national award of £10.5m, which, added to the Stage 1 development funding made a project award from the HLF of £11m. The intervening months have been filled with preparing costing tenders and building a team to match the detailed requirements laid down by HLF. Much of this now been completed. At last, in February, we could see our bright and exciting new future unfold before our eyes as the Dean blessed the cutting of the turf for the new Learning Centre.

Full reports on the progress of the Project are to be found in our “Illumination” series of progress reports which has been much admired by the HLF monitoring team. What a tribute that copies are being recorded for posterity at the British Library; more readily, however, they can be obtained from the Cathedral Office.

An early initiative was the formation of our Volunteer Action & Advisory Group (VAAG) which has made a decisive and constructive contribution to fleshing out in detail many of the outline plans which make up the Activity Plan. I would like formally to register my appreciation for their sterling efforts. I acknowledge not only their hard work and dedication but also their insight and fresh thinking which has enriched the Project so much.

A fresh approach to the Christmas Market this year was our decision to separate the Lantern Parade from the Ice Rink Opening Event. The result exceeded all of our expectations. The sight of many hundreds of children, accompanied by their parents, milling around in the Outer Close enjoying the festivities and waiting on tenterhooks for the Prize Giving was a joy to behold. This was our Cathedral at its very best, rooted firmly at the heart of our community.

The achievements of this past year in the life of our Cathedral and the promise of the years that lie ahead belong to us all. What a wonderful gift. Thank you.

Canon Annabelle Boyes, Receiver General and Canon Treasurer

2.32.32.3 Worship

At the time of writing, it is three months since I joined the Cathedral community as Canon Precentor and Sacrist and I would like to begin by recording my thanks at the warmth of the welcome I have experienced in the cathedral community and in the city. Winchester has a very special atmosphere and the loving community within the cathedral is the jewel at its heart.

These last twelve months have been full of change for the Cathedral and also sadness. I had only just moved to Winchester when I heard the sad news that my predecessor Canon Michael had died. He was one of the first to welcome me when my appointment was published and was already a colleague within the national Precentors’ network. However not all departures were so sad. Jonathan Hope, our organ scholar, moved to Gloucester to become Assistant Director of Music. After Jonathan’s departure Justin Miller arrived from Ripon to assist us until the end of the choir term in the summer.

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Another new arrival to the Cathedral has been the experimental sanctuary area of which has already proved extremely useful, particularly for larger services such as funerals and ordinations. It will remain for a year whilst we collect feedback and explore new liturgical and ceremonial possibilities.

The Music and Liturgy department are as busy as ever, dealing with weddings, funerals and special services as well as the daily services for our cathedral community. Some notable special events over these past twelve months have been the Orthodox ceremony of John Tavener’s funeral and the sixtieth anniversary of Her Majesty Queen Elizabeth’s coronation which attracted twelve hundred worshippers.

Two new services which have appeared on our calendar are the Healthcare Workers’ Evensong and the Saying Goodbye service for those who have lost a baby which both aim to reach out beyond the cathedral walls to care for the local community.

The Cathedral Choir is also continuing to reach out through their recordings. This year’s recording is Remembrance- themed and will include the Agnus Dei from Britten’s War Requiem and a new piece by Philip Moore which was commissioned for a previous Southern Cathedrals’ Festival. It will be released in November 2014.

The Chamber Choir and the Nave Choir are also prospering well, giving opportunities for singers of all abilities to participate in choral worship.

I will finish by offering my thanks to the many volunteer groups who make our worship possible: The bellringers who call us to worship; the sidesmen who offer us such a warm welcome; the flower- arrangers who help us to experience the wonder of creation; the wardrobe team who act so sacrificially, washing and ironing on an industrial scale; the broderers, readers, intercessors and the servers. I’d also like to offer my thanks to Daren, Andrew, Sue and Emma, the organists and the virgers who are constantly ‘running the extra mile’ and whose work is often done behind the scenes to make our worship so serene and professional.

Canon Sue Wallace, Precentor and Sacrist

2.42.42.4 Education and Spirituality

This year has once again been about growing partnerships.

Partnership with the Diocese and Churches

We enjoyed being part of the Diocesan Lent Course, Living the Mission of Jesus, when we expanded the number of regular house groups from one to four. The Diocesan Board of Education featured in our Education Sunday celebration in February 2014, as well as one of the schools under their care, St Bede Church of England Primary School, Winchester. Guides also rose to the challenge of offering the local churches a spiritual tour of the Cathedral by candlelight, including space for personal prayer and group reflection at the end.

Partnership with the University

Great thanks is due to the University of Winchester, who took up the idea of trying to engage positively with the issues raised by the anti-capitalism protests at St Paul’s and other cathedrals in 2011/12. Its staff led a series of conversations in coffee shops and bars across the city, put on a musical extravaganza in the Cathedral, undertook performance at the Theatre Royal and concluded in April 2014 by organising an international conference on The Futures of Capitalism at the University itself.

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We were so pleased to have Rosie Homer among us as Chaplaincy Assistant. Rosie threw herself into life at the Cathedral, including acting as a server and sharing in the leadership of the Lent house groups. We pray for her as she continues her ministry and vocational discernment in Manchester.

Partnership with the Arts

The exhibition programme brought us work of distinction. Julian Stair, a potter whose career began with inspiration from our retrochoir tiles, included the Cathedral in his national tour of Quietus: The Vessel, Death and the Human Body. This was followed by the City-wide arts event Creative Collisons - 10 Days, which brought fresh crowds to the Cathedral for the Private View and left us with a loan of four glazed vases, by Amelia Tuttiet, in Guardian Angels’ Chapel.

Our Arts and Exhibitions Consultant and I were interviewed by Diarmaid MacCulloch for a Radio 3 programme on iconoclasm, on the destruction of old and introduction of new religious symbols in Winchester Cathedral, timed to coincide with the popular Art under Attack exhibition at Tate Britain.

Comings and Goings

The Revd Lionel Stock, The Revd Ann Keating from the University and Wanda Nash all stepped down from the Action and Advisory Group for Education and Spirituality. Wanda ended with a fine series of lunchtime workshops entitled, Prayer: Telling or Listening? The group has been replenished through the kind offices of Dr Angus Paddison from the University, Hiko Takeda and Professor Tom Watson.

Sue Hancock retired having worked over several years as a PA for the Receiver General and myself; Claire Hardwick took over until her husband’s role took her away to Geneva, and now Olivia Wright has stepped into the breach. I am pleased that Olivia was educated at Peter Symonds College where I have been a Governor for the last nine years!

Canon Dr Roland Riem, Vice Dean and Canon Chancellor

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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 2014 were as follows:

Dean: The Very Revd James Atwell Vice Dean & Canon Chancellor The Revd Canon Dr Roland Riem Canon Precentor & Sacrist: The Revd Canon Michael St-John Channell (to Sept 2013) Canon Precenter & Sacrist: The Revd Canon Sue Wallace (from March 2014) Receiver General & Canon Treasurer Mrs Annabelle Boyes Lay Canon Dr Helen Harvey Lay Canon Prof the Rt Hon Lord Plant of Highfield

3.43.43.4 Officers of the Foundation High Steward: The Marquess of Douro 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 2014 were as follows: Miss Jean Ritchie QC (Chair) (Bishop’s appointment) The Very Revd James Atwell (ex officio) Mrs Annabelle Boyes (Chapter appointment) Colonel Alastair Bruce of Crionaich (Bishop’s appointment) (from October 2013) Mr David Evans (Bishop’s appointment) (from June 2013) The Revd Ann Keating (Bishop’s appointment) Mr Alan Lovell DL (Bishop’s appointment) Lady Portal DL (Bishop’s appointment) Surgeon Vice Admiral Anthony Revell (elected by Cathedral community) The Revd Canon Dr Roland Riem (Chapter appointment) Mr Martin Rudd (Bishop’s appointment) The Revd Canon Jo Stoker (appointed by College of Canons) (from 27 March 2013) The Revd Canon Dr Ian Tomlinson (appointed by College of Canons) Mr Paul Wing (elected by Cathedral community) The Revd Dr Andrew Wood (Bishop’s appointment) Visitor: The Rt Revd Timothy Dakin, Lord Bishop of Winchester Mr Stephen Adam (Secretary)

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3.63.63.6 College of Canons

Visitor The Bishop of Winchester, The Rt Revd Timothy Dakin

The Chapter of Winchester The Dean of Winchester , The Very Revd James Atwell Vice Dean & Canon Chancellor, The Revd Canon Dr Roly Riem Canon Precentor, The Revd Canon Sue Wallace Receiver General & Canon Treasurer, Mrs Annabelle Boyes Dr Helen Harvey (to 17 May 2014) Prof the Rt Hon Lord Plant of Highfield

Bishop’s Staff The Bishop of Basingstoke, The Rt Revd Peter Hancock (to 7 June 2014) The Bishop of Southampton, The Rt Revd Jonathan Frost The Dean of Guernsey, The Very Revd Paul Mellor The Dean of Jersey, The Very Revd Bob Key The Archdeacon of Winchester, The Venerable Michael Harley The Archdeacon of Bournemouth, The Venerable Dr Peter Rouch

Canon Theologian The Revd Canon Dr Judith Maltby (2011)

Honorary Canons The Revd Canon Ian Tomlinson (2004) The Revd Canon Clive Hawkins (2005) The Revd Canon Kenneth Batt (2007) The Revd Canon Jo Stoker (2008) The Revd Canon Jackie Browning (2009) The Revd Canon John Harkin (2009) The Revd Canon Gary Philbrick (2009) The Revd Canon Jill Bentall (2011) The Revd Canon Geoff Houghton (2011) The Revd Canon David Snuggs (2011) The Revd Canon Dr Brian Rees (2011) The Revd Canon Norman Boakes (2011) The Revd Canon Dr Andrew Goddard (2012) Mr Andrew Robinson (2012) The Revd Canon David Williams (2012) The Revd Canon Stephen Pittis (2013) The Revd Canon Peter Seal (2013)

Ecumenical Canons The Abbot of Fleury (2011) The Revd Canon Paul Townsend (2011) Annual Report Statutory Supplement and Audited Accounts - Page 10

The Revd Canon Dr Howard Mellor (2011)

3.73.73.7 Other key appointments

Receiver General & Canon Treasurer Mrs Annabelle Boyes Cdir FIoD FLCM

Cathedral Architect Mr Nick Cox MA (Cantab) Dip Arch RIBA AABC Nick Cox Architects, 77 Heyford Park Upper Heyford OX25 5HD

Archaeologist Dr John Crook MA FSA DPhil 52 Canon Street Winchester SO23 9JW

Director of Music Mr Andrew Lumsden MA FRCO

3.83.83.8 Finance and Investment Advisory Committee

Sir James Butler CBE DL (Chair) The Rt Hon Lord Ashburton KG KCVO DL (to July 2014) The Very Revd James Atwell – The Dean (Chapter) The Revd Canon Michael St John-Channell - Canon Precentor (Chapter) (to Sept 2013) The Revd Canon Dr Roland Riem – Vice Dean & Canon Chancellor (Chapter) Mrs Annabelle Boyes - Receiver General & Canon Treasurer ( Chapter) Mr Nigel Atkinson, Vice Lord Lieutenant of Hampshire Mr Edmund Byers Mr John Pringle Mr Christiaan Beech - Head of Finance (in attendance)

3.93.93.9 Fabric Advisory Committee

General Sir Hugh Beach GBE KCB MC (Chair to 15 May 2013) Professor Martin Biddle (Chair from 13 October 2013) Ms Zuleika Dobson Mr Anthony Feltham-King (from June 2013) Mr Christopher Gordon Mr Michael Morris (to 8 October 2013) Mr John Spokes QC Mr Michael Wheeler (from May 2013) Rev Justin White (from May 2013 to Jan 2014) Professor Barbara Yorke The Very Revd James Atwell - The Dean (in attendance) Mr Carlton Bath (in attendance) Mr Nick Cox (in attendance) Dr John Crook (in attendance) Mr Robert Forrester (in attendance) Mrs Annabelle Boyes – Receiver General (Secretary) Ms Julia Fordham (Minute secretary)

3.103.103.10 Winchester Cathedral Enterprises Ltd

Mr J onathan Durrant (Director and Chair) Mrs A nnabelle Boyes (Managing Director) Mr R upert Ellwood (Director) Mr Stan Kaufman (Director)

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The Rev d Canon Dr Roland Riem (Director) Mr Christiaan Beech (Company Secretary)

3.113.113.11 Auditors

Grant Thornton UK LLP 1 Dorset Street Southampton SO15 2DP

3.13.13.123.1 222 Bankers and other professional advisers

Bankers National Westminster Bank plc High Street Winchester SO23 9AW

Clerk at Law Mr Julian Hartwell LLB Martyrwell, Cheriton Alresford, Nr Winchester SO24 O2A

Occupational Health Adviser Dr S Chapman Swift Medical Services, St Clements Partnership Tanner Street, Winchester SO23 8AP

Property Agents Carter Jonas 9a Jewry Street Winchester SO23 8RZ

Quantity Surveyors David Bailey Associates Moonfleet 56 Perowne Way, Sandown, Isle of Wight PO36 9BU

Solicitors Godwins 12 St Thomas Street Winchester SO23 9HF

Barrister-at-Law Chilton Media Law 8 West Street London WC2H 9NG

Stockbrokers & Investment Managers Cazenove Capital Management Ltd 12 Moorgate London EC2R 6DA

Investment Managers CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ

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3.13.13.133.1 333 Volunteer Section Heads Mrs Gillian Allen, Litter Pickers Mrs Margaret Braddock, Holy Dusters / Brass Band Mr Nick Bucknall, Bell Ringers Mrs Sheena Crawford-Moody, Events Stewards Mrs Anna Diamond, Broderers Mr Julian English , South Transept Co-ordinator Mrs Brenda Fletcher, Information Desk Mrs Andrea Hall, Wardrobe Team Mr Arnold Jarman, Lunchtime Recitals Mr Phillip Johnson, Calligraphers Mr Peter Matthews, Cash Counters Mrs Helen McGarry and Mr Andrew Crowther-Walker, Flower Arrangers Mr John Pringle, Dean Garnier Gardeners Ms Serena Romer-Lee & Mrs Lorna Atwell, Deanery Books Mr Brian Scott, Welcoming Stewards Ms Natalie Shaw, Hospitality Team Mr Jeff Steer, Tower Tour Guides Mrs Marion Steads, Proof Readers Mr David Stirrup, Concert Programme Sellers Mr John Weatherley, Servers Mr Paul Wing, Head Sidesman Mr Anna Withers, Guides Mrs Valerie Woodward, Visitors’ Chaplains

444 Structure, governance and management

4.14.14.1 Governing Statute The Cathedral is governed by the Cathedrals Measures 1999 and the Constitution and Statutes that came into effect on 19 April 2000 as amended on 17 February 2009.

4.24.24.2 Relationship with the Diocese of Winchester The Diocesan Bishop is The Right Reverend Timothy Dakin.

The Cathedral is the formal ‘seat’ of the Bishop of Winchester, and he is the official Visitor. After consultation with the Chapter and subject to any provision in the Statutes, he may officiate in the Cathedral and use it in his work of teaching and mission, for ordinations and synods and for other Diocesan occasions and purposes. The Bishop is a valued friend and advisor to the Cathedral, which in turn seeks to support the Bishop’s work of leading the Diocese in mission and ministry. Chapter members actively participate in the Mission and Ministry of the Diocese, serving on the Bishop's Staff and many Diocesan committees and working groups. The Bishop of Winchester is supported by two Suffragan Bishops – The Bishops of Basingstoke and Southampton.

4.34.34.3 Organisational structure ––– the corporate body The members of Chapter, the Council, and the College of Canons form the corporate body of the Cathedral.

The Chapter of the Cathedral The Chapter consists of the Dean, two Residentiary Canons, the Receiver General & Canon Treasurer and two Lay Canons, members recruited for their skills and expertise in specific areas of the Cathedral’s life. Chapter holds the executive role of the corporate body and is responsible for leadership, policy, strategy, vision, and also has fiduciary duties.

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Residentiary members of Chapter are responsible for different portfolios within the Cathedral’s life – mission and social responsibility, pastoral care and spiritual development, education and visits, liturgy and music and patronage. These departments are supported by a range of committees and teams. The Receiver General & Canon Treasurer has overall responsibility for cathedral support services and resources.

The Cathedral Council The Council is an advisory and consultative body, established to support the work of the Chapter and to ensure accountability to the wider community and Diocese. It provides a sounding board and guidance for Chapter as well as offering an informal ‘watchdog’ role to ensure that the Cathedral fulfils its legal responsibilities. It also has a formal role if any amendments to the Cathedral’s Constitution and Statutes should be proposed.

The College of Canons The College consists of senior clergy and lay members from across the Diocese, appointed by the Bishop, along with a number of ecumenical canons (representatives from other denominations). Its role is to ensure that the Cathedral is open to informed opinions, observations and comment from churches within and beyond the Diocese.

4.44.44.4 Organisational structure ––– other key committees and groups

The Finance and Investment Advisory Committee This committee is a sub-committee of Chapter and is responsible for advising Chapter in connection with its responsibilities in the field of financial and investment management.

The Fabric Advisory Committee This committee is responsible for ensuring that any work to the fabric of the Cathedral is done with proper regard to due and legal process. It includes the Cathedral Architect, the consultant Archaeologist, and other experts in the conservation and repair of historic buildings.

The Cathedral Community Membership of the Cathedral Community is open to all those who apply for membership and are aged sixteen years or more, who worship at the Cathedral, or who work for or hold office linked to the Cathedral. The Community meets once a year for an open meeting. It has no statutory powers but allows for open discussion of any issue of interest within the life of the Cathedral. From this body, two members are elected to the Cathedral Council.

4.54.54.5 Other organisations associated with the work of thethe Cathedral

The Friends of Winchester Cathedral The Friends of Winchester Cathedral is an independent network of supporters of the Cathedral. They continue to provide very substantial and welcome support both to the fabric of the Cathedral and to its environment, and also in their generous support of the boys and girls who sing in the cathedral choirs.

Winchester Cathedral Trust Established in 1983, Winchester Cathedral Trust is an independent charity set up to receive money raised from appeals made on the Cathedral’s behalf and to make grants in accordance with the terms of the Trust Deed to support the development of the Cathedral. The Trustees are drawn from across the region.

Winchester Cathedral Enterprises Limited This limited company is a wholly-owned subsidiary of Chapter. It undertakes a range of commercial activities within and around the Cathedral and in the Visitors Centre. All taxable profits are

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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) are appointed by the Bishop with the agreement of the Dean in consultation with the Chapter. The non-residentiary members of Chapter are appointed by the Bishop with the agreement of the Dean after consultation with the Chapter.

New members of Chapter are provided with key documents such as the Constitution & Statutes and links to the Cathedrals Measure 1999. Informal discussions are used to brief them on their role and to help them understand the different aspects of the Cathedral’s work. Where possible external training courses provided by the Association of English Cathedrals are used.

4.74.74.7 ChapterChapter’s ’s finanfinancialcial responsibilities Chapter is responsible under requirements laid down by the Church Commissioners under the powers given to them by Section 27 of the Cathedrals Measure 1999 for • preparing and publishing an annual report and audited accounts which give a true and fair view of the financial activities for each financial year and of the assets, liabilities and funds at the end of each financial year of the Cathedral and its connected entities • stating that they have complied in all material respects with the Accounting and Reporting Regulations for English Anglican Cathedrals prepared by the Cathedral Administrators and Finance Association (CAFA) specified by the Church Commissioners or describing which recommendations have not been complied with and giving reasons for the non compliance • selecting suitable accounting policies and then applying them consistently • making judgements and estimates that are reasonable and prudent • keeping proper accounting records from which the financial position of the Cathedral can be ascertained with reasonable accuracy at any time, and • safeguarding the assets of the Cathedral and taking reasonable steps for the prevention and detection of fraud and other irregularities.

4.84.84.8 CCClergy Clergy and senior staff changes The Revd Canon Michael St-John Channell left Chapter in September 2013, and the Revd Canon Sue Wallace joined in March 2014.

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.

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4.104.104.10 Public Benefit Although it is not a reporting requirement of the Church Commissioners, nevertheless Chapter confirm that they have complied with section 4 of the Charities Act 2006 to have regard to the public benefit guidance published by the Charity Commission in determining the activities of the Cathedral. The Cathedral not only serves the community daily in its religious and charitable work, but is an active resource of national importance in the promotion of religion, music, education, history and architecture.

4.114.114.11 Risk A corporate risk register has been completed and accepted by Chapter. This identifies and measures the possible impact of perceived risks and sets out the actions taken to manage and mitigate them. Progress will be reviewed every year by Chapter. There is a departmental risk register.

555 Financial Review

5.15.15.1 Reserves Policy Reserves are needed both to maintain the level of the Cathedral’s current activities and to enable the completion of long-term projects.

Maintaining unrestricted reserves protects the Cathedral against a sudden deterioration in its financial results (e.g. a significant drop in visitor income). It also provides a buffer in the event of long-term planning or restructuring.

Chapter’s aim is to build up reserves to at least 6 months of ordinary activity to afford increased protection to the Cathedral’s operations and increased flexibility in their availability and use.

Where specific future funding needs are identified, Chapter has the discretion to set aside free funds for designated purposes, those funds being declared as Designated Funds.

5.25.25.2 Investment Policy The Dean & Chapter aim to keep a balanced portfolio of investments that is risk averse and appropriate to the purposes of the funds that are represented by them.

The investment objectives given to our principal fund managers, Cazenove Capital Management, are to protect the capital value of the funds, to provide an increasing income and to maximise the overall growth of the funds. This should be achieved by investing in a portfolio of Investment Funds. The selection of the Funds will be made to reflect the benchmarks established for asset classes.

A medium to low risk profile is taken on equities and performance is measured against a composite benchmark index constructed by Cazenove Capital Management based on the agreed proportion of the component elements of the portfolio.

Investments in property are to be either capable of efficient local management or in the form of managed property funds. Performance is measured against income yield on the CBF Property Fund, the property fund managed by CCLA Investment Management Ltd on behalf of the Central Board of Finance of the Church of England.

Chapter, in its stewardship of charitable funds, aims to achieve appropriate levels of investment return within an ethical framework. Its investments are chosen according to a policy of Socially 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.

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Responsibility for the management of this policy rests with the Chapter, and instructions are given to the Cathedral’s investment managers to carry out stock transactions on a day to day basis.

5.35.35.3 Investment performance

Property Investments The Dean and Chapter own property to house clergy and staff and to use for offices. Other property is held for investment purposes and is rented out on a commercial basis where possible to generate funds for the day-to-day operation of the ministry of the Cathedral. Properties were revalued at market value on 31 March 2014.

£000 Rental income 635 Professional services (12) Repairs (23 ) Net income 600

Yield on investment properties

Capital value investment property (£000s) 15,330 Net income yield 3.9% CBF Property Fund income yield 6.9%

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. In addition, during 2013/14 rental income increased due to a reduced number of void letting periods. It is Chapter policy through the Close Plan to address some of these issues. Despite these factors, the policy to increase property and rental opportunities has caused rental income to increase significantly over the last five years – from £405k in 2009/10 to £635k in 2013/14.

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 22 2 85 9 316

CCLA 15 - 35 50

237 85 44 366

Gains on revaluations/disposals 256 Management fees (30)

Total return on other investments 592

Return on other investments £000

Market value of other investments 7, 421 Return 8.0 % Composite index agreed with Cazenove 6.2 %

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During the financial year the return from investments was 9.1% compared to the benchmark return of 6.2%. Equities were the best performers and had a great year throughout 2013 as optimism crept into markets as the economy gained momentum. The start of 2014 has been more challenging as higher valuations require justification and investors are faced with mixed signals on the economic and political front. The Cathedral’s strategy recently has been to reduce risk following a period where interest rates have been kept low and inflation fairly benign.

At 31 March 2014 our total investments excluding direct property holdings totalled £7.42m, of which 69% were held in listed equity funds, 12% in fixed interest, and 19% in other funds.

5.45.45.4 Cathedral maintenance plan Financial plans now look ahead in detail for the next 3 years and are updated annually. The above plans create a structure for development of all aspects of the Cathedral and provide the basis for ongoing, long-term stability and growth. In 2012 the quinquennial survey was completed, as well as a conservation management plan and archaeological report.

5.55.55.5 FiveFive- ---yearyear trends Set out below are key financial indicators over the last five years:

20 09 /10 20 10 /1 1 201 1/12 201 2/1 3 2013 /1 4 £000 £000 £000 £000 £000 Total income 4,129 4, 79 9 4, 521 5,174 5,299 WCEL covenant to Chapter 253 253 387 394 403 Other visitor income 449 501 587 558 600 Rental income 405 524 591 588 635 Investment income 272 326 32 7 346 366 Cathedral repairs/upkeep 812 1,435 916 91 0 977 Other expenditure on mission 1, 296 1,304 1, 426 1, 878 1,701 General Fund result (before capital gains) (7) 14 25 33 12

5.65.65.6 Commentary on the 20132013////14141414 results It is my joy to report another year with an annual surplus, coupled with further improvements to our unrestricted reserves. Last year we reported that we had submitted the funding application for a major project “Kings & Scribes – The Birth of a Nation”. This year we were indeed awarded funding from HLF to proceed with the project, and it is already encouraging to see the work start on the New Learning Centre building, and the renovation of our Education centre.

It would be very easy to be complacent about our annual results, but it is only from our constant vigilance that we achieve these results. Paying visitors to the Cathedral (including invoiced groups) fell by 3,061 (-2.7%) from 115,573 in 2012/13 to 112,512 in 2013/14. Some of this can be explained by bad weather discouraging visitors towards the end of the financial year. Undoubtably economic conditions still sat at the back of people’s mind. However we look positively to the future with our new development project to give our visitors better facilities and exhibitions when they visit our Cathedral.

The main indicator of performance on the Statement of Financial Activities (p27) is the General Fund result before “other recognised gains”. The General Fund is an unrestricted fund into which the income from our ordinary activities goes and from which we pay for our general running costs. The chart in paragraph 5.5 above shows a loss of £7k in 2009/10, surpluses in all subsequent years up to the £12k in 2013/14. This shows that we can not only cover our costs on a day to day basis, but gradually build up our general reserves to the six months of ordinary activity that Chapter have set as

Annual Report Statutory Supplement and Audited Accounts - Page 18 a reserves policy. General reserves now stand at £1.76m (2012/13 £1.74m), which now represents five months of ordinary activity.

We have increased our other reserves this year. In June 2013, we presented a “Symphony of Flowers” flower festival event in the Cathedral, and the profits were set aside to go towards funding the restoration of the Cathedral’s Willis organ and music library. Chapter was able to devote £43k into a Designated Fund for that purpose. Restricted funds also increased in value to £31,242k from £24,994k in 2012/13. The increase was mainly due to a significant rise in the value of the close property revaluation reserve by £6,108k, and through the receipt of legacies. We received a legacy valued at £103k for the organ restricted fund, and a further legacy of £58k for the Fabric restricted fund.

Total income increased in the year by £125k (2.4%) from £5,174k to £5,299k. Included in the Grants receivable was £291k (2012/13 £348k) from HLF for the completion of the first round development project, and for the start of the delivery phase. VoluntaryVoluntary Income increased by £20k (2.5%) from £785k to £805k. Congregational giving fell to £123k from £130k in 2012/13. Other donations to the Cathedral fell by £84k (-26%) from £318k to £234k. This was due to the Cathedral receiving a large specific donation in the prior year. On a positive note giving by Gift-Aid increased to £97k, from £54k in the prior year.

Grants from Friends and local trusts were £52k (2012/13 £127k). This decrease was due to funding for the exterior stone repairs to the South Presbytery from Friends in the prior year. Visitor income increased on 2012/13 by £42k to £600k from £558k. RentsRents were £47k up compared with 2012/13 because of rent increases during the year, offset by vacant periods at two properties. This must be seen in the context of an overall rise in total rental income of 57% in five years, which has been a major factor in the improvement of our financial position. All properties have now been let. Investment portfolio has done well with income increasing by £20k (6%) from £346k to £366k. Equities performed well, and the Cathedral benefitted both by having 69% of its portfolio with our principal fund managers in equity holdings and from maintaining a good underlying fund selection. Capital values of investments also increased significantly over the year adding £240k to their Balance Sheet values.

The heading “Income from Activities Generating Funds” includes income from the Cathedral’s trading company, Winchester Cathedral Enterprises Ltd. It includes the sales from Retail, Refectory, Box Office and events. All profits are covenated to the Cathedral. Company turnover grew by £65k (3%) from £2,238k to £2,303k. In 2012/13 Turnover went over the £2m mark for the first time, and our achievement this year has been to maintain that level of turnover, without the Chronicles of light event. The final result was an increase of £9k in net profit from £394k in 2012/13 to £403k in 2013/14.

Total expenditure decreased by £11k from £5,160k in 2012/13 to £5,149k in 2013/14. Included this year is expenditure of £352k relating to work on the Cathedral Appeal. £144k related to the HLF first round development phase of the project “Kings and Scribes – The Birth of a Nation”. The remainder was spend on the delivery stage of the HLF project, and other projects. The total expenditure on major repairs increased by £47k from £324k in 2012/13 to £371k in 2013/14, and includes a provision of £60k for repairs to the Deanery wall which collapsed at the start of 2012, which will be repaired during the summer of 2014. Maintenance and interior upkeep increased to £277k, from £271k in 2012/13, which included additional expenditure relating to the reletting of our properties.

Under the heading “Ministry”, clergy stipends decreased to £125k, from £137k in 2012/13 due to the Canon Precentor leaving during the year. Education and Outreach shows an increase this year of £11k, from £214k in 2012/13 to £225k in 2013/14.

In summary, 2013/14 was another year of progress made with difficult challenges overcome. On reflection the Cathedral was able to continue its surplus to the General Fund, build up its reserves, set aside further discretionary funds for future work and carry on our programme of essential repair projects. We are on target to achieve our financial goals.

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666 Plans for future periods

In May 2014 Pension Auto-enrolment will take place. Winchester Cathedral pension provision will be the Church Workers PB (2014) Scheme.

The refurbished Education Centre is on schedule for opening September 2014 and the new Learning Centre complete with the Apothecary and Sensory Garden is due to be completed by Summer 2015. The Enabling Works package will commence in August 2014 and the main conservation restoration and repair work will start in earnest in January 2015.

Planning for the temporary Exhibition is well underway and preparatory work for the new Exhibitions has commenced.

The introduction of the role of formal Learning Officer in July 2014 means development work on the expansion of our Learning programmes can begin. Plans for the introduction of a Community Engagement Officer are Summer 2015.

The recruitment of two new stonemason apprentices will take place Summer/Autumn 2014. The major programme for all the projects is expected to be completed by Summer 2014.

We continue to fundraise for the campaign and are grateful for the support of Winchester Cathedral Trust and the Friends. The project timetable will continue for the next four years.

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777 AAAuditedAudited Accounts

AUDITED ACCOUNTS 31 March 2014

The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester

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Statement of the Chapter's financial responsibilities

The Chapter is responsible under requirements laid down by the Church Commissioners under the powers given them by Section 27 of the Cathedrals Measure 1999 for

• preparing and publishing an annual report and audited accounts which give a true and fair view of the financial activities for each financial year and of the assets, liabilities and funds at the end of each financial year of the Cathedral and its connected entities; • stating that they have complied in all material respects with the regulations on the subject prepared by the CAFA or describing which recommendations have not been complied with and giving reasons for the non compliance; • selecting suitable accounting policies and then applying them consistently; • making judgements and estimates that are reasonable and prudent; • keeping proper accounting records from which the financial position of the Cathedral can be ascertained with reasonable accuracy at any time, and safeguarding the assets of the cathedral and taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Chapter is aware:

• there is no relevant audit information of which the Cathedral's auditors are unaware; and • the Chapter has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The Chapter is responsible for the maintenance and integrity of the Cathedral and financial information included on the Cathedral's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Independent auditor's report to the members of Chapter of Winchester Cathedral

We have audited the financial statements of Winchester Cathedral for the year ended 31 March 2014 which comprise the principal accounting policies, the consolidated statement of financial activities, the consolidated balance sheet, the Cathedral balance sheet, the consolidated cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Chapter, as a body, in accordance with the regulations made under Section 27 of the Cathedrals Measure 1999. Our audit work has been undertaken so that we might state to the Chapter those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Cathedral and the Chapter as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Chapter and auditor As explained more fully in the Statement of the Chapter's Responsibilities, the Chapter is responsible for the preparation of the financial statements which give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/apb/scope/private.cfm.

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 2014, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the regulations made under Section 27 of the Cathedrals Measure 1999.

Grant Thornton UK LLP Statutory Auditors – Chartered Accountants Southampton 2 September 2014

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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 November 2006 by the Cathedrals Administration and Finance Association. They have been prepared under the historical cost convention except that property and investments are included at a valuation.

The principal accounting policies have remained unchanged from the previous period and are set out below.

Basis of consolidation

The consolidated financial statements comprise those of the Cathedral and of its wholly-owned subsidiary company Winchester Cathedral Enterprises Limited. The consolidated financial statements also comprise the results of Winchester Cathedral Box Office Limited, a wholly owned subsidiary of Winchester Cathedral Enterprises Limited.

Funds

The Cathedral's permanent endowment funds are set out in note 15 to the financial statements. They include the Endowment, Music and Staff Pension Fund investments of the former Winchester Cathedral Appeal. Income from the permanent endowment funds is unrestricted.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor and are set out in note 16 to the financial statements. The reserve arising on the revaluation of properties within the Cathedral Close is deemed to be a restricted fund.

Unrestricted funds are funds where no restrictions are placed on the use by the Cathedral as regards either the capital or the income, and include the reserve arising on the revaluation of properties other than in the Cathedral Close.

Income

Dividend income and bank interest are included at the time of receipt at amounts which include recoverable income tax where appropriate. Voluntary income is received by way of general donations, special donations, church collections and Gift Aid donations. Such income is included at the time of receipt at amounts which include recoverable income tax on Gift Aid donations. Other income is included at the time of receipt or, in the case of grants, when the necessary conditions have been met. Legacy income is recognised when it is receivable.

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.

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"Costs of generating funds" comprises costs of attracting voluntary income, costs of trading for fund raising purpose, and costs of managing the investment properties.

"Expenditure on mission" comprises costs of the Cathedral's ministry, upkeep of the Cathedral fabric and precincts, and education and outreach.

"Governance" comprises costs of meeting the constitutional and statutory requirements of the Cathedral and its subsidiary companies.

Repairs, maintenance and restoration costs are valued on the basis of work done during the financial year.

Support costs, comprising salaries and office costs, have been allocated to the activity cost categories based on an estimate of the time spent.

Fixed assets

Property valuations have been included in the balance sheet on the following basis:

investment properties – market value
non-investment properties – existing use value

In line with FRS 15, properties are revalued on the basis of a full valuation at least every five years. In years with no full valuation, the Cathedral bases any valuation on the average property price movement during the period.

In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral as it is an inalienable and historic building for which no reliable cost information or conventional valuation basis is available.

Depreciation

Depreciation is calculated to write off the cost or valuation less estimated residual value of all tangible fixed assets (other than buildings) by equal annual instalments over their expected useful economic lives. The rates generally applicable are:

Capital equipment 25% Fixtures and fittings 20 -33 % Equipment 20% Office refurbishment 10%

As all of the properties are maintained in a state of repair such that their estimated residual value is not less than their improvement cost or carrying amount, the annual depreciation charge is £Nil.

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.

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Stocks

Shop and refectory stocks are stated at the lower of cost and net realisable value.

In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral inventory which comprises items of architectural, archaeological, artistic or historic interest.

Pension schemes

Chapter participates in the Church of England Defined Contributions Scheme, part of the Church Workers’ Pension Scheme. New employees may enrol in this scheme. In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of England Defined Benefits Scheme (DBS), also part of the Church Workers’ Pension Scheme, both of which schemes are now closed to new members.

The pension costs represent the amount of the contributions payable to pension schemes in respect of the accounting period.

Heritage Assets

The Cathedral holds a number of heritage assets with historic and artistic value. The nature and scale of the collection belonging to the Chapter of Winchester include: • Medieval manuscripts, including the Winchester Bible the largest and finest of all surviving 12th- century English bibles • The Morley Library a beautiful 17th-century collection of rare books bequeathed by Winchester’s Bishop Morley • Winchester Cathedral Archives • Winchester Cathedral wall monuments • Winchester Cathedral ledger stones and floor monuments • Winchester Cathedral medieval wall paintings • An Antony Gormley sculpture, Sound II • Other artefacts, including the Shaftesbury Bowl, the only surviving example of late Saxon glass in England

The Cathedral’s policy for the acquisition, preservation, management and disposal of heritage assets is described in 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.

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Consolidated statement of financial activities

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2014 2014 2014 2014 2014 2013 £000 £000 £000 £000 £000 £000 Incoming resources 1 Voluntary income 446 - 359 - 805 785 Grants receivable 5 - 484 - 489 528 Charges and fees arising in the course of charitable activities 101 - - - 101 129 Income from activities generating funds 2,860 43 - - 2,903 2,797 Income from property and investments 1,001 - - - 1,001 934 Other incoming resources - - - - - 1

Total incoming resources 4,413 43 843 - 5,299 5,174 Cost of generating funds 3,5 2,329 - - - 2,329 2,213

Net incoming resources available for charitable activities 2,084 43 843 - 2,970 2,961

Resources expended on charitable 4 activities Ministry 797 - 293 - 1,090 1,164 Cathedral and precincts upkeep 873 2 102 - 977 910 Education and outreach 165 - 60 - 225 214 Other expenditure on charitable activities 95 - 291 - 386 500

1,930 2 746 - 2,678 2,788

Governance costs 6 142 - - - 142 159

Net incoming resources 12 41 97 - 150 14

Other recognised gains Non-investment property 164 - 4,419 - 4,583 - Investment property (9) - 1,701 - 1,692 16 Investments 17 4 31 204 256 790

172 4 6,151 204 6,531 806 Net movement in funds 184 45 6,248 204 6,681 820

Fund balances brought forward 2,372 104 24,994 5,732 33,202 32,382

Fund balances carried forward 2,556 149 31,242 5,936 39,883 33,202

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Consolidated balance sheet

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2014 2014 2014 2014 2014 2013 £000 £000 £000 £000 £000 £000 Fixed assets Investment assets Property 9 80 - 15,250 - 15,330 13,638 Investments 10 202 149 1,134 5,936 7,421 7,179

282 149 16,384 5,936 22,751 20,817

Non-investment assets Property 11 1,755 - 14,885 - 16,640 12,069 Plant & equipment 12 240 - - - 240 139

1,995 - 14,885 - 16,880 12,208

Total fixed assets 2,277 149 31,269 5,936 39,631 33,025

Current assets Stocks 152 - - - 152 155 Debtors 13 252 - 58 - 310 293 Cash at bank and in hand 215 - 347 - 562 88

619 - 405 - 1,024 536

Current liabilities 14 (340) - (432) - (772) (359)

Net current assets / (liabilities) 279 - (27) - 252 177

Total assets less total liabilities 2,556 149 31,242 5,936 39,883 33,202

Funds General fund 18 1,764 - - - 1,764 1,735 Property revaluation reserve 16,18 792 - 29,684 - 30,476 24,213 Music fund 15 - - - 2,763 2,763 2,666 Other funds 15,16,17 - 149 1,558 3,173 4,880 4,588

2,556 149 31,242 5,936 39,883 33,202 - - -

The financial statements were approved by the Chapter at their meeting on 24 July 2014 and are signed on their behalf by:

The Very Reverend J Atwell - Dean

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

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Balance Sheet - Dean & Chapter only

Unrestricted Designated Restricted Endowment Total Total

funds funds funds funds funds funds Note 2014 2014 2014 2014 2014 2013 £000 £000 £000 £000 £000 £000

Fixed assets Investment assets Property 9 80 - 15,250 - 15,330 13,638 Investments 10 212 149 1,134 5,936 7,431 7,189

292 149 16,384 5,936 22,761 20,827

Non-investment assets Property 11 385 - 15,195 - 15,580 10,912 Plant & equipment 12 72 - - - 72 31

457 - 15,195 - 15,652 10,943

Total fixed assets 749 149 31,579 5,936 38,413 31,770

Current assets Stocks 21 - - - 21 29 Debtors 13 576 - 59 - 635 602 Cash at bank and in hand 181 - 347 - 528 35

778 - 406 - 1,184 666

Current liabilities 14 (255) - (432) - (687) (302)

Net current assets / (liabilities) 523 - (26) - 497 364

Total assets less current liabilities 1,272 149 31,553 5,936 38,910 32,134

Funds General fund 18 955 - - - 955 926 Property revaluation reserve 16,18 317 - 29,994 - 30,311 23,953 Music fund 15 - - - 2,763 2,763 2,666 Other funds 15,16,17 - 149 1,559 3,173 4,881 4,589

1,272 149 31,553 5,936 38,910 32,134

The financial statements were approved by the Chapter at their meeting on 24 July 2014 and are signed on their behalf by:

The Very Reverend J Atwell - Dean

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

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Consolidated cash flow statement

Note 2014 2014 2013 2013 £000 £000 £000 £000

Net cash outflow from operating activities 19 (286) (1,148)

Returns on investments Rents received net of costs 591 561 Interest and dividends received 332 316

923 877 Capital expenditure and financial investment Sale proceeds of investments less amounts reinvested 15 151 Purchases of furniture and equipment (178) (68)

(163) 83

Cash inflow/(outflow) before management of liquid resources and financing 474 (188)

Management of liquid resources

Net decrease in liquid resources 20 - -

Increase (decrease) in cash 20 474 (188)

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Notes to the financial statements

1 Consolidated Incoming resources

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2014 2014 2014 2014 2014 2013 £000 £000 £000 £000 £000 £000 Voluntary income Congregational collections and giving 60 - 63 - 123 130 Donations 228 - 6 - 234 318 Income from appeals and fundraising 52 - 76 - 128 88 Tax recoverable under Gift Aid 97 - - - 97 54 Income from Friends and local trusts - - 52 - 52 127 Legacies 9 - 162 - 171 68

446 - 359 - 805 785

Grants receivable Church Commissioners - - 147 - 147 118 Heritage Lottery Fund - - 291 - 291 348 Other revenue and capital grants 5 - 46 - 51 62

5 - 484 - 489 528

Charges and fees arising in the course of charitable activities Facility and other fees 101 - - - 101 129

Income from activities generating funds Charges to visitors 600 - - - 600 558 Gross income of shop, refectory and other trading activities 2,260 43 - - 2,303 2,239 Other external charges ------2,860 43 - - 2,903 2,797 Income from property and investments Income from investment property 635 - - - 635 588 Income from other investments 366 - - - 366 346

1,001 - - - 1,001 934

Other income Other items - - - - - 1

Total incoming resources 4,413 43 843 - 5,299 5,174

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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.

2014 2013 £000 £000

Turnover 2,303 2,238

Cost of sales (978) (941)

Gross profit 1,325 1,297

Other operating charges (922) (904) Other operating income - –

Operating profit 403 393

Interest receivable - 1

Profit on ordinary activities before donation 403 394

Donation to the Chapter of Winchester (403) (394)

Profit for the financial year - -

The Net Assets of Winchester Cathedral Enterprises Limited at 31 March 2014 840 1,004

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. 594563. Until the 31 March 2010 the company operated the Cathedral box office facility for both internal and external events. Since 1 April 2010 the box office function has traded through the legal entity of Winchester Cathedral Enterprises Limited. The company has therefore been dormant since that time. At 31 March 2014 it had net assets of £1 (2012/13 £1).

3 3 Cost of generating funds Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2014 2014 2014 2014 2014 2013 £000 £000 £000 £000 £000 £000 Costs of facilities for visitors 106 - - - 106 94 Costs of services directly recoverable 20 - - - 20 (3) Gross costs of shop, refectory and other trading activities 1,893 - - - 1,893 1,838 General marketing costs 162 - - - 162 154 Costs of appeals and fund raising 70 - - - 70 74 Investment property costs 44 - - - 44 27 Investment managers fees 34 - - - 34 29

2,329 - - - 2,329 2,213

Annual Report Statutory Supplement and Audited Accounts - Page 32

4 Resources expended on charitable activities Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2014 2014 2014 2014 2014 2013 Ministry £000 £000 £000 £000 £000 £000 Clergy stipends and working expenses 14 - 111 - 125 137 Clergy housing costs 45 - - - 45 44 Clergy support costs 61 - - - 61 58 Services and music 677 - 182 - 859 925

797 - 293 - 1,090 1,164

Cathedral and precincts upkeep Major repairs and restoration 334 - 37 - 371 324 Maintenance and interior upkeep 224 - 53 - 277 271 Cathedral insurance 96 - - - 96 91 Precincts, security and gardens upkeep 194 - 12 - 206 198 Support costs 25 2 - - 27 26

873 2 102 - 977 910

Education and outreach Educational activities 72 - - - 72 69 Archives and library 81 - - - 81 84 Charitable and other giving 12 - 60 - 72 61

165 - 60 - 225 214 Other expenditure on charitable activities Heritage Lottery Fund Project 61 - 291 - 352 461 Irrecoverable VAT 34 - - - 34 39

95 - 291 - 386 500

Total resources expended on charitable activities 1,930 2 746 - 2,678 2,788

5 5 Support costs Direct Support Total Direct Support Total costs costs costs costs 2014 2014 2014 2013 2013 2013 £000 £000 £000 £000 £000 £000

Costs of generating funds 2,222 107 2,329 2,122 91 2,213 Ministry 862 228 1,090 938 226 1,164 Cathedral and precincts upkeep 801 176 977 714 196 910 Education and outreach 200 25 225 190 24 214 Other expenditure on mission 386 - 386 500 - 500 Governance costs 142 - 142 159 - 159

4,613 536 5,149 4,623 537 5,160

6 Governance costs 2014 2013 £000 £000 Auditors' remuneration: Audit services 17 17 Accountancy and other services 8 4 Taxation advice 1 12 Governance and strategic planning 116 126

142 159

Annual Report Statutory Supplement and Audited Accounts - Page 33

7 7 Employees Staff costs during the year were as follows: 2014 2013 £000 £000 Salaries and stipends 1,810 1,754 Social security costs 136 128 Other pension costs 147 137

2,093 2,019

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

2014 2013 Cathedral staff 16 16 Administration 15 13 Education 2 2 Maintenance 11 13 Shop and Refectory 24 24 Visitor services 5 5

73 73

One member of the Chapter, the Receiver General, received remuneration during the year of £81,000 (2013: £76,000). The Dean, the Canon Chancellor and Precentor Stipends are paid by the Church Commissioners.

The remuneration and pension provision of the clerical members of the Chapter are covered in full by a grant from the Church Commissioners in accordance with the scales laid down by the Archbishops’ Council, the Church of England pensions Board and the Church Commissioners. A total of £6,696 (2013: £7,596) 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:

2014 2013 £000 £000

Audit services 17 17 Accountancy and other services 8 4 Taxation advice 1 12

26 33

9 Investment property

Consolidated and Chapter Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000 Valuation At 1 April 2013 89 - 13,549 - 13,638 Change in use - - - - - Additions - - - - - Change in market value (9) - 1,701 - 1,692

At 31 March 2014 80 - 15,250 - 15,330

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.

Annual Report Statutory Supplement and Audited Accounts - Page 34

10 10 Investments

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

Investments at market value 1 April 2013 467 104 863 5,730 7,164 Additions 55 12 104 679 850 Proceeds from disposals (56) (13) (106) (690) (865) Transfers (282) 42 240 - - Net increase/(decrease) on disposals and revaluations 17 4 31 204 256

Investments at market value 31 March 2014 201 149 1,132 5,923 7,405

Short term deposits - - - - - Uninvested Cash 1 - 2 13 16

Market Value Carried Forward (Consolidated) 202 149 1,134 5,936 7,421

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

Investments (Chapter) 212 149 1,134 5,936 7,431

2014 2013 £000 £000

Equity funds 5,126 5,170 Fixed interest funds 875 933 Portfolio funds 116 124 Property funds 524 192 Other managed funds 764 745 7,405 7,164

Other liquid resources - 13 Cash fund 16 2 Shares in subsidiary companies 10 10

7,431 7,189

The Chapter owns the whole of the issued share capital of Winchester Cathedral Enterprises Limited.

Annual Report Statutory Supplement and Audited Accounts - Page 35

11 11 Non-investment property

Consolidated Unrestricted Designated Restricted Endowment Total funds funds funds funds funds Valuation £000 £000 £000 £000 £000 At 1 April 2013 1,591 - 10,478 - 12,069 Additions - - - - - Depreciation - - (12) - (12) Change in market value 164 - 4,419 - 4,583

At 31 March 2014 1,755 - 14,885 - 16,640

Chapter Unrestricted Designated Restricted Endowment Total funds funds funds funds funds Valuation £000 £000 £000 £000 £000 At 1 April 2013 220 - 10,692 - 10,912 Additions - - - - - Depreciation - - (12) - (12) Change in market value 165 - 4,515 - 4,680

At 31 March 2014 385 - 15,195 - 15,580

Non-investment properties are held and used as follows: Long Freehold leasehold Total At 1 April 2013 £000 £000 £000 For Cathedral administration and workshops 1,270 - 1,270 For Cathedral clergy and staff housing 6,502 220 6,722 For the Deanery 2,200 - 2,200 For the education centre 505 - 505 Leased to Winchester Cathedral Enterprises Limited 215 - 215

Chapter total 10,692 220 - 10,912 Eliminated on consolidation (215) - (215) For Cathedral trading activities 1,372 - 1,372

Consolidated total 11,849 220 12,069

Long Freehold leasehold Total At 31 March 2014 £000 £000 £000 For Cathedral administration and workshops 1,360 - 1,360 For Cathedral clergy and staff housing 9,690 220 9,910 For the Deanery 3,500 - 3,500 For the education centre 500 - 500 Leased to Winchester Cathedral Enterprises Limited 310 - 310

Chapter total 15,360 220 15,580 Eliminated on consolidation (310) - (310) For Cathedral trading activities 1,370 - 1,370

Consolidated total 16,420 220 16,640

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.

Annual Report Statutory Supplement and Audited Accounts - Page 36

12 12 Cathedral plant and equipment

Consolidated Chapter £000 £000 Cost At 1 April 2013 727 238 Additions 178 64 Disposals (333) (137)

At 31 March 2014 572 165

Depreciation At 1 April 2013 588 207 Charge for the year 77 23 Disposals (333) (137)

At 31 March 2014 332 93

Net book value

At. 31 March 2014 240 72

At 31 March 2013 139 31

13 13 Debtors Consolidated Chapter 2014 2013 2014 2013 £000 £000 £000 £000

Winchester Cathedral Enterprises Limited - - 398 337 Other debtors 220 263 202 256 Prepayments 90 30 35 9

310 293 635 602

14 14 Current liabilities Consolidated Chapter 2014 2013 2014 2013 £000 £000 £000 £000

Trade creditors 160 108 101 46 Social security and other taxes 10 38 10 31 Other creditors 63 152 46 180 Accruals 539 61 530 45

772 359 687 302

15 15 Endowment funds

Consolidated and Chapter At 1 April Net Investment At 31 March 2013 Incoming/ gains/ 2,014 (outgoing) (losses) in resources the year £000 £000 £000 £000 Appeal fund: Fabric 2,009 - 77 2,086 Music 71 - - 71 Staff 25 - - 25

2,105 - 77 2,182 Music 2,666 - 97 2,763 Permanent endowment 842 - 30 872 John and Kathleen Kyle Memorial Fund for Lay Clerks 80 - - 80 Roger Bruce Ellery 39 - - 39

5,732 - 204 5,936 Annual Report Statutory Supplement and Audited Accounts - Page 37

16 16 Restricted funds

Consolidated At 1 April Net Investment At 31 March 2013 Incoming/ gains/ 2014 (outgoing) (losses) in resources the year £000 £000 £000 £000

AEV Day deceased 1,112 - 31 1,143 Fabric 62 58 - 120 Fabric and worship 45 - - 45 Deanery furnishings 18 - - 18 Cathedral charitable 33 4 - 37 Deanery Garden 4 2 - 6 Library 27 1 - 28 Choristers’ bursary 5 (5) - - Thomas-Davies 13 - - 13 Venerable Altar/ Swags 6 (1) - 5 Woodhouse Trust 5 - - 5 Girls’ choir 6 2 - 8 Music 30 (30) - - Organ 13 103 - 116 Tapestry Fund 23 (23) - - Others under £5,000 16 (2) - 14

1,418 109 31 1,558 Close property revaluation reserve 23,576 6,108 - 29,684

24,994 6,217 31 31,242

AEV Day Deceased - Established by legacy. This fund is restricted to Fabric. The underlying value of the legacy should be preserved and the income used to offset costs of Cathedral maintenance and conservation Fabric - Funds restricted to the repair and conservation of the Fabric of the Cathedral Fabric and worship - Funds restricted to the internal fabric relating worship and liturgy in the Cathedral Deanery furnishings - Funds restricted to provide furnishings and fittings for the Deanery Cathedral charitable - Income provided by donation to the Cathedral to support other charitable causes Deanery garden - Funds restricted to the repair and maintenance of the Deanery garden Library - Funds for expenditure on the Library. Income augmented from time to time by restricted donations. Thomas-Davies - A Fund whose income is to be used at the discretion of the Dean and the Receiver General to meet the special needs and welfare of the Virgers and Lay Clerks Venerable Altar / Swags - Income received from donations restricted to the repair and maintenance of the Venerable Altar, Icons and Swags Woodhouse Trust - Funds restricted to sound and light in the Cathedral Girls' Choir - Funds to support the Girls' choir Organ - Funds to repair and maintain the Organ Others under £5,000 - Monies given for specific activities or projects that are not substantial in balance, income or expenditure

Annual Report Statutory Supplement and Audited Accounts - Page 38

16 16 Restricted funds (cont'd)

Chapter At 1 April Net Investment At 31 March 2013 Incoming/ gains/ 2014 (outgoing) (losses) in resources the year £000 £000 £000 £000

AEV Day deceased 1,112 - 31 1,143 Fabric 62 58 - 120 Fabric and worship 45 - - 45 Deanery furnishings 18 - - 18 Cathedral charitable 33 4 - 37 Deanery garden 4 2 - 6 Library 27 1 - 28 Choristers’ bursary 5 (5) - - Thomas-Davies 13 - - 13 Venerable Altar/ Swags 6 (1) - 5 Woodhouse Trust 5 - - 5 Girls’ choir 6 2 - 8 Music 30 (30) - - Organ 13 103 - 116 Tapestry Fund 23 (23) - - Others under £5,000 17 (2) - 15

1,419 109 31 1,559 Close property revaluation reserve 23,791 6,203 - 29,994

25,210 6,312 31 31,553

The details of the restricted funds are shown above

17 17 Designated funds Consolidated and Chapter At 1 April Net Investment At 31 March 2013 Incoming/ gains/ 2014 (outgoing) (losses) in £000 £000 £000 £000

Kings & Scribes Project Fund 39 - 1 40 Sound & Light Fund 65 (2) 3 66 Organ Fund & Music Library - 43 - 43

104 41 4 149

Kings and scribes Fund - Funds to support the associated projects of the "Kings and Scribes - A Birth of a Nation" project. Sound & light Fund - Funds for the Sound & light project Organ - Funds to repair and maintain the Organ, and music library

Annual Report Statutory Supplement and Audited Accounts - Page 39

18 18 Unrestricted funds Consolidated At 1 April Net Investment At 31 March 2013 Incoming/ gains/ 2014 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 1,735 12 17 1,764 Property revaluation reserve 637 - 155 792

2,372 12 172 2,556

Chapter At 1 April Net Investment At 31 March 2013 Incoming/ gains/ 2014 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 926 12 17 955 Property revaluation reserve 162 - 155 317

1,088 12 172 1,272

19 19 Reconciliation of net incoming resources to net cash outflow from operating activities 2014 2013 £000 £000 Net incoming resources before revaluations and disposal of investments 150 14 Less income from property and investments (1,001) (934) Add property management costs and investment manager costs. 78 56 Depreciation charges 89 69 Decrease/(increase) in stocks 3 (19) (Increase)/decrease in debtors (17) (115) Increase in creditors 413 (219)

Net cash outflow from operating activities (286) (1,148)

20 20 Reconciliation of net cash flow to movement in net funds 2014 2013 £000 £000 Increase/(decrease) in cash 474 (188) Increase /(decrease) in liquid resources - -

Increase/(decrease) in net funds 474 (188) Net funds at 1 April 2013 98 286

Net funds at 31 March 2014 572 98

21 21 Analysis of changes in net funds At 1 April Cash flow At 31 March 2013 2014 £000 £000 £000 Cash at bank and in hand/(Overdraft) 86 474 560 Cash balances included in investments 12 - 12

98 474 572

Annual Report Statutory Supplement and Audited Accounts - Page 40

2 2 22 Capital commitments

There were no capital commitments at 31 March 2014 or 31 March 2013.

2 3 23 Contingent assets/liabilities

The Chapter is aware of its obligations in relation to Chancel liabilities. During the year the Chapter was notified of one such liability. However, at this stage, the quantum of this cannot be reliably measured and as such, no provision has been made in the financial statements. There were no contingent assets or liabilities at 31 March 2014 or 31 March 2013.

2 4 24 Pension schemes

Chapter participates in the Church of England Defined Contributions Scheme (DCS), part of the Church Workers’ Pension Scheme. New employees may enrol in this scheme. The DCS is a defined benefit scheme, which is administered by the Church of England Pensions Board and provides benefits at retirement based on contributions made to the DCS prior to the date of retirement. The assets of the DCS are held separately from those of the employer. As at the formal valuation at December 2010, the DCS was in surplus on an on-going funding basis. The Chapter is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the DCS. For schemes like this, paragraph 9(b) of the financial reporting standard 17 (FRS 17) required Winchester Cathedral to account for pension costs on the basis of contributions actually payable to the Scheme in the year. The Cathedral contributes 8% of basic salary and the employees are required to contribute a minimum contribution of 3%. The contributions for the year totalled £38,095. Winchester Cathedral had 24 active members and 6 deferred members in the DCS at 31 March 2014.

In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of England Defined Benefits Scheme (DBS), also part of the Church Workers’ Pension Scheme, both of which schemes are now closed to new members. At 31 March 2014 the Chapter had 3 active members and 14 deferred pensioner members in the DBS. The Chapter is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the DBS. A valuation of the Fund has been carried out as at 31 December 2010 and the Chapter's contribution rate in respect of future accruing benefits was revised to 25.8%. Additional contributions in respect of the shortfall in the Employer sub-pool of £73,542 pa are payable until 31 March 2017 with effect from 1 April 2012.

2 5 25 Connected entities Certain members of the Chapter are trustees of both The Winchester Cathedral Trust and The Carl Klein Trust, and are members of the Friends of Winchester Cathedral. However, the Chapter does not have day to day control over any of these charities.

The Friends of Winchester Cathedral This association exists to assist the Chapter in maintaining, the fabric and monuments and the fittings and furnishings of the Cathedral and its associated ground-works within the precincts, excluding property used for residential or administrative purposes.

The Winchester Cathedral Trust The Charity’s objects are to raise funds and receive donations to apply to any charitable purpose connected with Winchester Cathedral. This includes the general upkeep of the Cathedral and the improvement and repair of all other buildings in the Cathedral Close, and the receipt and distribution of funds raised to meet the costs of choristers.

The Carl Klein Trust The Charity’s objects are to provide financial assistance to lay clerks and prospective lay clerks of Winchester Cathedral who are in need or are suffering hardship

Annual Report Statutory Supplement and Audited Accounts - Page 41

25 Connected entities (cont'd)

The most recently published summarised results of these entities are as follows:- The The The Friends of Winchester Carl Klein Winchester Cathedral Trust Cathedral Trust 31-Mar-14 31-Mar-14 31-Mar-14 £000 £000 £000 Gross Income 342 1,669 -

Net incoming/(outgoing) resources for the year (29) 1,105 -

Net Movement in Funds (30) 1,105 -

Amounts paid or payable to the Cathedral 288 505 -

Gross Assets 1,023 3,409 466

Net Assets 484 3,380 465

The above accounts of The Winchester Cathedral Trust, The Carl Klein Trust and the Friends of Winchester Cathedral have been subject to an audit or independent examination under the Charities Act 2011. Only income receivable from the above connected entities has been included in the financial statements of the Chapter.

The Pilgrims' School (Limited by guarantee)

In addition to the above connected entities, the Chapter has the right to appoint Governors of The Pilgrims' School (Limited by Guarantee). However, the School's results have not been consolidated and no financial results for the year have been reproduced as the Chapter does not regard running the School as part of the ministry of the Cathedral and any financial surplus is not passed on to the Cathedral.

26 Related party transactions

During the year the Chapter received £505k (2013: £23k) from The Winchester Cathedral Trust. During the year the Chapter received £57k (2013: £113k) from The Friends of Winchester Cathedral in grants. During the year the Chapter received £135k (2013: £139k) from The Pilgrims' School (Limited by Guarantee) in respect of rent. During the year the Chapter paid £223k (2013: £219k) in respect of Choristers' school fees to The Pilgrims' School (Limited by Guarantee). During the year the Chapter paid £3k (2013: £15k) to Sophie Hacker, the wife of a Chapter member Canon Roland Riem, in respect of expenditure on arts and exhibitions

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