Annual Report

ANNUAL REPORT

STATUTORY SUPPLEMENT AND AUDITED ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2013

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 2012/13

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 ...... 6 333 Legal and administrative information ...... 8 3.1 Legal name of the Cathedral ...... 8 3.2 Chapter Office ...... 8 3.3 Chapter ...... 8 3.4 Officers of the Foundation ...... 8 3.5 Council ...... 8 3.6 College of Canons ...... 9 3.7 Other key appointments ...... 10 3.8 Finance and Investment Advisory Committee ...... 10 3.9 Fabric Advisory Committee ...... 10 3.10 Winchester Cathedral Enterprises Ltd ...... 10 3.11 Auditors ...... 11 3.12 Bankers and other professional advisers ...... 11 3.13 Volunteer Section Heads ...... 11 444 Structure, governance and management ...... 12 4.1 Governing Statute ...... 12 4.2 Relationship with the Diocese of Winchester ...... 12 4.3 Organisational structure – the corporate body ...... 12 4.4 Organisational structure – other key committees and groups ...... 13 4.5 Other organisations associated with the work of the Cathedral ...... 13 4.6 Chapter appointments and training ...... 14 4.7 Chapter’s financial responsibilities ...... 14 4.8 Clergy and senior staff changes ...... 14 4.9 Investment powers...... 14 4.10 Public Benefit ...... 14 4.11 Risk...... 14 555 Financial Review ...... 15 5.1 Reserves Policy ...... 15 5.2 Investment Policy ...... 15 5.3 Investment performance ...... 15 5.4 Cathedral maintenance plan ...... 17 5.5 Five-year trends ...... 17 5.6 Commentary on the 2012/13 results ...... 17 666 Plans for future periods ...... 19 777 Audited Accounts ...... 20

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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

This year was marked by new leadership in the life of the Church of England, both locally and nationally. On Saturday 21 April 2012, the Right Reverend Timothy Dakin was enthroned as 97th Bishop of Winchester. The Cathedral was packed by representation of every aspect of both the wider community from across the Diocese, as well as from the parishes and ecumenical partners. Particularly noticeable was the presence of African bishops, as befits a former General Secretary of the Church Mission Society. Bishop Tim lost no time in using his enthronement sermon to truly inaugurate his ministry in the Diocese based on his vision of individual and corporate discipleship as the ‘Three Ps’. These are: Passionate Personal Spirituality, Pioneering Faith Communities and Prophetic Global Citizens.

It is the task of the Archdeacon of Canterbury, the Venerable Sheila Watson, to actually place the Bishop in his cathedra or seat. She stayed on to preach at the Cathedral Eucharist the following morning and present the Cathedral with a stone carving of the Cross of Canterbury based on a Saxon Cross recovered at Canterbury Cathedral. On this occasion, Bishop Tim celebrated the Eucharist for the first time in his Cathedral Church and gave an ancient chapel a new dedication. The dedication is to St Alphege, for 21 years Bishop of Winchester under Ethelred the Unready. He was translated to Canterbury where he fell victim to an incursion of the Danes who sacked both City and Cathedral. His refusal to let the depressed population raise the money for a ransom on his life led him to be acclaimed as ‘Martyr for Justice’. Those events had taken place exactly 1,000 years ago - almost to the day - of Bishop Tim’s inauguration and so captured the huge continuity of the Christian story in Wessex, as a new chapter began.

On Thursday 21 March 2013 the Most Reverend Justin Welby was enthroned as 105th Archbishop of Canterbury. Some of us in Winchester followed Alphege’s migration from Wessex to Kent, albeit for a short time only, in order to attend the enthronement service. It was both a celebration of faith, including the exuberance of ethnic drummers, and also witness to the ability of the Church of England still to celebrate the life of the nation, with the Prince of Wales, the Prime Minister and the Speaker of the House of Commons leading the way. It poignantly represented the challenge to the new Archbishop to enable the Christian message to connect with an increasingly secular nation. The same week saw the inauguration of the ministry of Pope Francis. Could spring be in the air, we wondered?

Winchester Cathedral played its part in the national landmarks that marked out the year. The Queen’s Diamond Jubilee was celebrated with a County Service on Sunday 27 May and the Scout Movement had their own celebration a short time afterwards. The Queen and Prince Phillip attended the New Forest Show on one of the hottest days of the year. The Queen, seemingly utterly cool and relaxed, visited the Cathedral stand and chatted with the Chairman and Trustees of the Friends, of which she is the Patron.

The other great landmarks were the Olympic and Paralympic Games, in which the nation was taken by surprise by its ability to be happy, positive and community-minded. As well as a visit to the Outer Close by the Olympic flame, both sets of games were relayed via a huge television screen set up near the Cathedral. That enabled the Cathedral precincts to become one of the favoured places in which to enjoy the Olympic summer in the company of others. It provided a contemporary perspective on traditional Benedictine hospitality.

On Sunday 23 September, the Cathedral Appeal was launched. Under the chairmanship of the Lord Lieutenant, the Winchester Cathedral Trust invited the support of the community in raising the goal of £19M. The Appeal seeks not only to secure the fabric of the Cathedral, but also to engage yet more effectively with our visitors and to transform our educational outreach. The Cathedral has unique opportunities to gently but surely introduce the unsuspecting to the beauty of holiness. At

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the service, the Leader of the County Council, Ken Thornber CBE, pledged £1M to the Appeal on behalf of the County Council. It was very heartening hearing him claim that this generosity acknowledged the Cathedral’s contribution to the wellbeing of the County.

The Annual Report tells the story of a year in the life of a Cathedral, seeking in Christ’s name to contribute to the wellbeing of those with whom it comes into contact. Read on!

The Very Revd James Atwell, Dean of Winchester

2.22.22.2 The Receiver General

What a busy, time-demanding year this has been, but equally, what a successful and productive year. I am delighted to report that for the third year running we have balanced our budget and finished the year with a surplus on the bottom-line of some £33k. This is down to the dedication and commitment of my Cathedral Team who have worked tirelessly against a background of a continuing negative national and international financial environment.

The Christmas Market and Ice Rink have once again made a major financial contribution to our financial wellbeing while giving so much fun, enjoyment and seasonal blessings to the thousands of visitors who came from far and wide to enjoy the Christmas message at our Cathedral.

The Cathedral staff have been joined by a cross-section of our volunteer community and a team of specialist consultants in the long, highly complex and detailed task of preparing our Stage 2 National Heritage Lottery Fund (HLF) bid for funding for our major project: “Kings & Scribes – The Birth of a Nation” (K&S Project). Last year I was pleased to report that we had received funding from HLF for Stage 1, the development phase for the K&S Project. We have successfully completed Stage 1, which lead to a Stage C HLF pass in January of this year. The Stage C pass opened the way for us to progress to the completion of our Stage 2 funding application, the final process, which we submitted in April 2013. We expect to hear the outcome of our bid by the end of July 2013.

The bid has been a monumental task and completion on time would not have been possible without the support of all working together over many long hours to submit our proposal. It has been a great pleasure and a privilege to see all sections of our Cathedral Community coming together with such enthusiasm. It has been a particular pleasure to note the dedication of the team of volunteers who have worked so tirelessly and with such commitment on the Activity Plan, a major component of our Stage 2 Application. My thanks go to them all.

Full details of the K&S Project will be found in “Illumination”, our new quarterly news report. The Project is of enormous importance for the future of our Cathedral, but we must remember too that it does not stand alone. It is also the bedrock of our 10-year Strategic Plan. They are complementary to each other. We are now in a position to develop a ‘Strategic Roadmap’ which for the first time unites in practice the spiritual and operational dimensions of the Cathedral’s ministry and mission, joining together ‘Worship, Witness and Welcome’ with ‘People, Community and Heritage’. The Roadmap is our path to a secure future for the generations that will follow us. It will allow us to truly fulfil our stated purpose, ‘to thrive not just survive’.

Amid the hard work and achievements of the many, it is a great joy also to recognise the contributions and achievements of so many of the individuals in our community. I allow myself, by way of example, to applaud the achievement of Ross Lovett, our Head Stonemason, who has acquitted himself with flying colours when gaining his MSc in historic building conservation. Well

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done, Ross, and also to all of you who have achieved the personal milestones you have set for yourselves.

My thanks to you all for your help, support and wise counsel throughout the year.

Canon Annabelle Boyes, Receiver General and Canon Treasurer

2.32.32.3 Worship

Rather like living in a place of beauty, the need for thankfulness and a sense of blessing, is something which has to be revisited time and again. We worship in a wonderful place and the standard of music is second to none. The openness and hospitality improves year by year, and there is a renewed feeling of growth. Far from whistling in the dark, it is a reality, and we should feel very positive.

There have been several significant changes in personnel in the Music Department, which have all added to the daily round of worship. Both the new Deputy Director of Music, George Castle, and the Organ Scholar, Jonathan Hope, have settled in well and form part of a happy and effective team. Three new Lay Clerks have also been welcomed. Ben Cooper (Bass), Paul Bentley (Tenor) and Peter Harris (Tenor) are all already an important part of our choral tradition.

A recent development in losing our four top line boys, has been equalled by the excellent way the remaining number have all met the challenge and are singing well.

The need for four new Girl Choristers in September was equally matched by an audition for thirteen short listed candidates, and we were spoilt for choice.

In the past year, visits have included St.Cross Church, Birmingham and Dorchester, in addition to our usual programme. We look forward to the final arrangements for a tour of Florence, and a trip to Germany next year. The SCF this year is in Chichester and plans are already well advanced.

The Virgers too have seen changes. The new Deputy Head Virger, (Dickon Kelley) has joined Neil, Eleanor and David, also all new, and they all contribute to a happy and hard working team.

Bell Ringers, Concert Stewards, Sidesmen, Flower Arrangers, Servers, Wardrobe Team and Broderers, all work with such dedication and never flagging zeal, we are grateful to them every one of them.

There is a very strong sense that we are all in this together. As long as we keep focused on the Lord Jesus, and make him the one who binds us all together.

Canon Michael St.John-Channell, Precentor and Sacrist

2.42.42.4 Education and Spirituality

There has been one notable change of personnel in the Department. In 2012 the Revd Gregory Clifton Smith took over from Canon Jackie Browning as the clergyperson devoted to pastoral care. As Close Vicar, Gregory is making the work his own and is already very much involved in visiting, praying for those in need, supporting chaplaincy and leading the Cathedral Fellowship. He and Valerie Woodward have been successful at swelling the ranks of Visitor Chaplains.

The work in children’s education directed by Cheryl Bryan continues to develop. The first three months of this year have seen the majority of the UK groups composed of people aged 11 – 18+ rather Annual Report Statutory Supplement and Audited Accounts - Page 6 than a younger age group. Judith Pope and Sandra Showell, two of the Children’s Guides have been working hard at forging links with Peter Symonds College. Tutors came to the Cathedral earlier this year to hear about the exciting work Judith has been doing on Aelfric. We are also exploring ways to make the Diocesan Resources Room better used by teachers.

Winchester: Chronicles of Light was the dominating arts and exhibitions’ event of the year. However, mention should be made of a peaceful and pleasant exhibition called Reflect in Spring 2012, showing the work of artists from the Garden Gallery in Stockbridge. Over the last summer there was also a small exhibition in the Bible Room, featuring beautiful Victorian watercolours of Hampshire Churches in four albums commissioned by Bishop Sumner.

The adult education programme continued, supported by the Education and Spirituality Action and Advisory Group under the new chairmanship of Professor David Targett. 2012 saw two lectures to mark the 350th anniversary of the publication of the Book of Common Prayer and early this year Lord Plant gave a fascinating series on Religion and Values in a Liberal State. The scope of the educational programme makes for a wide and diverse range of audiences.

The Cathedral Archive is in the careful hands of the Hampshire Record Office. The account rolls deposited at HRO have received special treatment thanks to a £10,000 grant from the National Manuscripts Conservation Trust. The Cathedral Guides committed to a year of fundraising to continue this conservation project, eventually adding over six and a half thousand pounds to the total, a magnificent achievement. Part of the catalogue of the Archive was also put online, with the Dean pressing the appropriate button in November 2012.

Much of the work of the Department this year has been about laying firm foundations for the future. Our HLF bid has prompted a root-and-branch review of how we manage the Cathedral Collection: the Archive; our collection of artefacts; and the three parts of our Cathedral Library, the Morley Library, the Morley Additionals and the Post-1850 Library. We are now in a position where we have brought to bear the best thinking from other cathedrals and museums about how best to conserve and develop the Collection. This can only stand us in good stead as we enter a period of extreme and exciting change.

Canon Dr Roland Riem, Chancellor & Pastor

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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 2013 were as follows:

Dean: The Very Revd James Atwell Canon Chancellor & Pastor: The Revd Canon Dr Roland Riem Canon Precentor & Sacrist: The Revd Canon Michael St-John Channell Receiver General & Canon Treasurer Mrs Annabelle Boyes Lay Canon Prof the Rt Hon Lord Plant of Highfield Lay Canon Dr Helen Harvey

3.43.43.4 Officers of the Foundation High Steward: The Rt Hon Lord Ashburton Counsellor: His Honour Judge Michael Brodrick

3.53.53.5 Council

Members of the Cathedral Council during the year to 31 March 2013 were as follows: Miss Jean Ritchie QC (Chair) (Bishop’s appointment) The Very Revd James Atwell (ex officio) Mr Michael Honeysett (elected by Cathedral community) (to September 2012) Surgeon Vice Admiral Anthony Revell (elected by Cathedral community) Mr Paul Wing (elected by Cathedral community) (from September 2012) Mr Alan Lovell DL (Bishop’s appointment) Lady Portal DL (Bishop’s appointment) The Revd Ann Keating (Bishop’s appointment) Mr Martin Rudd (Bishop’s appointment) The Revd Dr Andrew Wood (Bishop’s appointment) Mrs Annabelle Boyes (Chapter appointment) The Revd Canon Dr Roland Riem (Chapter appointment) The Revd Canon Dr Ian Tomlinson (appointed by College of Canons) The Revd Canon Peter Doores (appointed by College of Canons) (to 27 March 2013) The Revd Canon Jo Stoker (appointed by College of Canons) (from 27 March 2013) 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 Canon Chancellor, The Revd Canon Dr Roly Riem Canon Precentor, The Revd Canon Michael St.John-Channell Prof the Rt Hon Lord Plant of Highfield Mrs Annabelle Boyes Dr Helen Harvey

Bishop’s Staff The Bishop of Basingstoke, The Rt Revd Peter Hancock 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 Simon Baker (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) The Revd Canon Dr Howard Mellor (2011)

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3.73.73.7 Other key appointments

Receiver General 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 The Very Revd James Atwell – The Dean (Chapter) Mr Clive Fenn-Smith (to July 2012) Mr Edmund Byers (from July 2012) Mr Nigel Atkinson, Vice Lord Lieutenant of Hampshire Mrs Annabelle Boyes - Receiver General ( Chapter) Mr John Pringle The Revd Canon Michael St John-Channell - Canon Precentor (Chapter) The Revd Canon Dr Roland Riem – Canon Chancellor (Chapter) Mr Jeremy Bowden - Head of Finance (in attendance) (to July 2013)

3.93.93.9 Fabric Advisory Committee

General Sir Hugh Beach GBE KCB MC (Chair to 15 May 2013) Mr Christopher Gordon Mr Michael Morris (to 8 October 2013) The Rev’d Canon Mark Bonney (to 9 October 2012) Mr John Spokes QC Professor Barbara Yorke Ms Zuleika Dobson Professor Martin Biddle (Chair from 13 October 2013) 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) Mrs Julia Fordham (Minute secretary)

3.103.103.10 Winchester Cathedral Enterprises Ltd

Mr J H Durrant (Director and Chair) Mrs A Boyes (Managing Director) The Rev d Canon Dr R Riem (Director) Mr S Kaufman (Director) Mr R J Ellwood (Director) Mr J J Bowden (Company Secretary) Annual Report Statutory Supplement and Audited Accounts - Page 10

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

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

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

3.13.13.133.1 333 VolunteVolunteer er Section Heads Mrs Gillian Allen, Litter Pickers Mr Jeff Steer, Tower Tour Guides Mrs Andrea Hall, Wardrobe Team Mrs Helen McGarry and Mr Andrew Crowther-Walker, Flower Arrangers Mrs Margaret Braddock, Holy Dusters / Brass Band Mrs Anna Diamond, Broderers Mr Anna Withers, Guides Mrs Brenda Fletcher, Information Desk Mrs Aileen Stocks, Dean Garnier Gardeners Mr David Stirrup, Concert Programme Sellers

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Mr Arnold Jarman, Lunchtime Recitals Mr Phillip Johnson, Calligraphers Ms Natalie Shaw, Hospitality Team Mr George Medd, Bell Ringers Ms Suzie McHeyzer, Cash Counters Mr Paul Wing, Head Sidesman Mr Julian English , S Transept Co-ordinator Mr Brian Scott, Welcoming Stewards Mr John Weatherley, Servers Mrs Robin Anderton, Events Stewards Mrs Hilary Dunwoody, Volunteer Co-ordinator Mrs Valerie Woodward, Visitors’ Chaplains Ms Serena Romer-Lee & Mrs Lorna Atwell, Deanery Books

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.

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 and vision.

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

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

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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 covenanted to Chapter and details of its trading activities are summarised within the statement of consolidated financial activities and the notes to the accounts. The Directors (of whom one is a Chapter member) are appointed by the Chapter.

The Friends of the Dean Garnier Garden The Friends of Dean Garnier Garden was established in 1994 to maintain the Garden, the fabric of which remains in the ownership of the Cathedral. The Dean Garnier Garden, formerly the Deanery Rose Garden, is available for the use of the community of Winchester and for all visitors to The Close.

Carl Klein Trust An independent charity, the Carl Klein Trust supports two dwellings dedicated for lay clerks and gives grants for the welfare of lay clerks.

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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 Clergy and senior staff changes There were no major changes during the year.

4.94.94.9 Investment powers Under the Cathedrals Measure 1999 the Chapter may invest the Cathedral's funds in any of the following: Land; Funds administered for the Central Board of Finance of the Church of England by CCLA Investment Management Ltd; investments in which trustees may invest under the general power of investment in the Trustee Act 2000; the improvement or development of property belonging to the Cathedral, except that endowment funds may not be used to improve or develop the Cathedral itself and its ancillary buildings.

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

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

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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. The current benchmark index was agreed in September 2011.

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, but authority to conduct stock transactions on a day-today basis under this policy is delegated to the Cathedral’s Investment Managers.

5.35.35.3 Investment performance

Property Investments The Dean and Chapter own property to house clergy and staff and to use for offices. Other property is held for investment purposes and is rented out on a commercial basis where possible to generate funds for the day-to-day operation of the ministry of the Cathedral. Properties were revalued at market value in 2009/10.

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£000 Rental income 588 Professional services (1) Repairs (19) Net income 568

Yield on investment properties

Capital value investment property (£000s) 13,638 Net income yield 4.2 % CBF Property Fund income yield 7.5 %

The annual net income yield will vary year by year depending on the amount of capital works done in the year. Our relatively low yield reflects the fact that capital values in the Close are particularly high and also that for historical reasons, some properties do not generate market rents. In addition, during 2012/13 rental income was reduced by a 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 £382.2k in 2008/09 to £588.4k in 2012/13.

Other investments The performance of the Cathedral’s other investments is shown below:

Equity Fixed Other Total Gross income from other investments funds interest funds £000 £000 £000 £000

Cazenove funds 229 48 17 294

CCLA 14 - 38 52

243 48 55 346

Gains on revaluations/disposals 790 Management fees (29)

Total return on other investments 1, 107

Return on other investments £000

Market value of other investments 7,179 Return 15.4 % Composite index agreed with Cazenove 11.3 %

During the financial year the return from investments was 15.4% compared to the benchmark return of 11.3%. Equities increased significantly in value over the year. The Cathedral saw the benefits of this, both from having 72% of its portfolio in equity holdings and from maintaining a good underlying fund selection. Returns from bonds were more subdued than in 2011/12, but the Cathedral was protected by maintaining a bias towards company debt rather than Government bonds. Riskier assets benefitted from loose monetary policies across the globe and from diminishing fears about prospects within the Eurozone.

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At 31 March 2013 our total investments excluding direct property holdings totalled £7.18m, of which 72% were held in listed equity funds, 13% in fixed interest, and 15% 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:

2008/09 2009/10 2010/11 2011/12 2012/13 £000 £000 £000 £000 £000 Total income 3,732 4,129 4,799 4,521 5,174 WCEL covenant to Chapter 206 253 253 387 394 Other visitor income 383 449 501 58 7 558 Rental income 382 405 524 591 588 Investment income 268 272 326 327 346 Cathedral repairs/upkeep 881 812 1,43 5 916 910 Other expenditure on mission 1,109 1,296 1,30 4 1,426 1,8 78 General Fund result (before capital gains) (116) (7) 14 25 33

5.65.65.6 Commentary on the 2012012222/1/1/1/13333 results Previous Annual Reports have noted the solid progress the Cathedral’s finances have been making over recent times. It is pleasing to report that 2012/13’s results continue that progress, with an increasing annual surplus on the General Fund and a gradual build-up of unrestricted reserves. This reflects an inherent strength in the Cathedral’s operating position. But this year there was also encouraging news on the capital side of the Cathedral’s business: in May 2012 the Cathedral was awarded a First Round Heritage Lottery Fund (HLF) grant of £475.5k to undertake development work to enable us to submit an application for a much larger grant, which if successful will enable the Cathedral not only to tackle important and urgent repairs to the roof, vaults and windows, but also to transform our offer to visitors and the community, giving us the chance to establish an even stronger financial base for the future. That application was submitted in April 2013.

Despite these extremely important developments, 2012/13 has not been an easy ride. Economic stagnation has continued throughout the year. Important public events, in particular the Jubilee and the Olympics, have had an adverse effect on visitors and visitor income, making it hard to reach income targets in several areas of operations. Paying visitors to the Cathedral (including invoiced groups) fell by 7.9k (6%) from 123,226 in 2011/12 to 115,573 in 2012/13. Despite these setbacks, the Cathedral’s trading company was able to beat the outstanding performance of the previous year and turn in a net profit of £394k (2011/12 £387k). Good control of expenditure compensated for hard- pressed income targets in other areas to provide an improved overall result for the year.

The main indicator of performance on the Statement of Financial Activities (p26) 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 steady progress from a loss of £116k in 2008/9 to a surplus of £33k in 2012/13. This shows that we can not only cover our costs on a day to day basis, but gradually build up general reserves to the six months of ordinary activity that Chapter have set as a reserves policy. General reserves now stand at £1.74m (2011/12 £1.64m), five months of ordinary activity, and exist to enable us to continue the Cathedral’s mission in the event of an emergency or a need to make a major investment.

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It is not only in the General Fund that the Cathedral has been able to build up reserves this year. In October 2012, the magnificent sound, light and drama event “The Chronicles of Light” took place in the Cathedral. There was a huge response from the public, resulting in a sell-out of seats on the fifteen days the event was held. The profits were earmarked to go towards the planned improvements to Sound and Light within the Cathedral, and as a result of the successful event, Chapter was able to devote £65k into a Designated Fund for that purpose. Restricted Funds also increased in value, despite the need to provide matched funding (£102k in 2012/13) for the First Round HLF project and the costs of several other smaller capital repair projects. This is both owing to a significant increase in the value of investments over the year (£123k) and the receipt of restricted legacies valued at £65k. Designated Funds now stand at £104k (2011/12 £50k), and Restricted Funds at £25.0m (2011/12 £24.9m).

Total income increased in the year by £653k (14%) from £4,521k to £5,174k. A significant factor in the increase was the receipt of £348k HLF grant aid for the successful First Round development project. Voluntary Income increased by £24k (3%) from £761k to £785k. Mention has been made of legacies (totalling £68k over all funds). Congregational giving was at a similar level to 2011/12. A Stewardship campaign was launched in February 2013, but the results are not expected to be seen until the 2013/14 financial year. Other donations to the Cathedral however increased by £61k (24%) from £257k to £318k. During the year, giving from Gift-Aid envelopes increased by £14k and owing to the manning of the Entrance Desk on Sundays during the year, donations from that source increased by £8k. However the greatest increase was in specific donations, which benefitted from £35k for the Tapestry Fund and £15k for the Music Foundation.

Grants from Friends and local trusts decreased by £51k compared with the previous year and stood at £127k (2011/12 £178k). This is because 2011/12 included the last instalment of grant from the Friends for the Fleury Building (£27k), which was completed the previous year. The Friends have also generously funded exterior stone repairs to the South Presbytery. This was £18k less in 2012/13 than in 2011/12 because the Cathedral stonemasons were engaged on other urgent work (e.g. the North Presbytery pinnacle repairs). Although visitor income was down (by £29k to £558k from £587k) because of a fall in visitor numbers during the year, trading income was up by £322k (17%)from £1,917k to £2,239k, mainly due to the effect of events sales from the Chronicles of Light event. Rents were £3k down compared with 2011/12 because, despite a number of rent increases during the year, there were vacant periods at three properties. This must be seen in the context of an overall rise in total rental income of 54% in five years, which has been a major factor in the improvement of the Cathedral’s financial position. All properties have now been let. Investments have done well with income increasing by £19k (6%) from £327k to £346k. Equities performed particularly well, and the Cathedral benefitted both by having 72% 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 £790k to their Balance Sheet values.

The heading “Income from Activities Generating Funds” includes income from the Cathedral’s trading company, Winchester Cathedral Enterprises LtdLtd. It includes the sales from Retail, Refectory, Box Office and events. All profits are donated to the Cathedral. Company turnover exceeded £2m for the first time, and grew by £322k (16.8%) from £1,917k to £2,239k. This growth belies a challenging time for the company. The summer period was dogged by bad weather and low visitor numbers in the Cathedral (affected by the Jubilee and the Olympics) and this seriously affectedly trade both in the Gift Shop and the Refectory. However, much ground was recovered after a spectacular performance in all areas following the Chronicles of Light event in October and excellent Christmas trading. The final result was an increase of £7k in net profit from £387k in 2011/12 to £394k in 2012/13.

Total expenditure increased by £717k (16%) from £4,443k in 2011/12 to £5,160k in 2012/13. The main reason for the increase was the start of the HLF first round development phase of the project “Kings and Scribes – The Birth of a Nation” in the summer of 2012. £461k of the budgeted £635k project was completed during the financial year. Another major factor was increased spend on other major repairs. This was influenced by the completion of the quinquennial survey by the Cathedral architect Annual Report Statutory Supplement and Audited Accounts - Page 18

during the year. This important report identifies urgent repair works and enables the Cathedral to plan its future maintenance and repair needs. As a direct result of this report, work started on repairs to the North Presbytery pinnacle (£15k) and to column shafts in the Retrochoir (£7k). Other new items of work started during the year were the high altar tapestry (£17k), and a major tree survey of the Close (£10k). The total expenditure on major repairs increased by £52k from £272k in 2011/12 to £324k in 2012/13. This had an effect on the amount of VAT the Cathedral was unable to recover – it came to £39k in 2012/13, compared with £23k the year before, an increase of £16k.

Under the heading “Ministry”, clergy stipends and working expenses remained on similar levels to the previous year, but Clergy housing costs increased from £16k to £44k over the year. The reason for this was the appointment of a Close Vicar during the year, who was appointed on a house for service agreement. It was agreed to charge a notional rent to this heading to represent the opportunity cost of the value of the house occupied. Education and Outreach shows a fall this year of £26k, from £240k in 2011/12 to £214k in 2012/13. Of this £6k less was spent on art and exhibitions and £21k less on development. These resources were spent on the event Chronicles of Light in 2012/13, and charged against the income generated.

In summary, 2012/13 was a challenging year, but one which demonstrated the underlying resilience of the Cathedral’s finances. Despite difficult external factors, the Cathedral was able to improve its General Fund operating result, build up its reserves, set aside discretionary funds for future work and tackle several important repair projects. Finally it was able to attract a First Round HLF grant, with the aspiration to transform the offer to visitors, greatly expand our education base, extend outreach and ultimately provide greater financial security and sustainability for the future.

666 Plans for future periods

In May 2012, the Cathedral’s application for a Round One Heritage Lottery Fund grant was approved. This was a development stage grant that was followed in April 2013 by an application for a Round Two implementation stage grant. This is part of a £19m campaign launched by Winchester Cathedral Trust in September 2012 that aims to undertake essential repair and conservation work, transform the visitor experience and radically develop public and volunteer engagement in the work of the Cathedral.

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777 Audited Accounts

AUDITED ACCOUNTS 31 March 2013

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 2013 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 2013, 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 26th July 2013

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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.

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

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"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 2013 2013 2013 2013 2013 2012 £000 £000 £000 £000 £000 £000 Incoming resources 1 Voluntary income 359 65 361 - 785 761 Grants receivable - - 528 - 528 192 Charges and fees arising in the course of mission 129 - - - 129 119 Income from activities generating funds 2,797 - - - 2,797 2,506 Income from property and investments 934 - - - 934 918 Other incoming resources 1 - - - 1 25

Total incoming resources 4,220 65 889 - 5,174 4,521 Cost of generating funds 3,5 2,213 - - - 2,213 1,953

Net incoming resources available for mission 2,007 65 889 - 2,961 2,568

Expenditure on mission 4 Ministry 860 - 304 - 1,164 1,114 Cathedral and precincts upkeep 752 - 158 - 910 916 Education and outreach 164 - 50 - 214 240 Other expenditure on mission 39 11 450 - 500 72

1,815 11 962 - 2,788 2,342

Governance costs 6 159 - - - 159 148

Net incoming resources 33 54 (73) - 14 78

Other recognised gains Non-investment property ------Investment property 3 - 13 - 16 - Investments 62 - 110 618 790 (46)

65 - 123 618 806 (46) Net movement in funds 98 54 50 618 820 32

Fund balances brought forward 2,274 50 24,944 5,114 32,382 32,350

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

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Consolidated balance sheet

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2013 2013 2013 2013 2013 2012 £000 £000 £000 £000 £000 £000 Fixed assets Investment assets Property 9 89 - 13,549 - 13,638 13,622 Investments 10 467 104 876 5,732 7,179 6,541

556 104 14,425 5,732 20,817 20,163

Non -investment assets Property 11 1,591 - 10,478 - 12,069 12,079 Plant & equipment 12 139 - - - 139 130

1,730 - 10,478 - 12,208 12,209

Total fixed assets 2,286 104 24,903 5,732 33,025 32,372

Current assets Stocks 155 - - - 155 136 Debtors 13 183 - 110 - 293 178 Cash at bank and in hand 88 - - - 88 274

426 - 110 - 536 588

Current liabilities 14 (340) - (19) - (359) (578)

Net current assets / (liabilities) 86 - 91 - 177 10

Total assets less total liabilities 2,372 104 24,994 5,732 33,202 32,382

Funds General fund 18 1,735 - - - 1,735 1,640 Property revaluation reserve 16,18 637 - 23,576 - 24,213 24,209 Music fund 15 - - - 2,666 2,666 2,373 Other funds 15,16,17 - 104 1,418 3,066 4,588 4,160

2,372 104 24,994 5,732 33,202 32,382

The financial statements were approved by the Chapter at their meeting on 24 th July 2013 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 2013 2013 2013 2013 2013 2012 £000 £000 £000 £000 £000 £000

Fixed assets Investment assets Property 9 89 - 13,549 - 13,638 13,622 Investments 10 477 104 876 5,732 7,189 6,551

566 104 14,425 5,732 20,827 20,173

Non-investment assets Property 11 220 - 10,692 - 10,912 10,924 Plant & equipment 12 31 - - - 31 13

251 - 10,692 - 10,943 10,937

Total fixed assets 817 104 25,117 5,732 31,770 31,110

Current assets Stocks 29 - - - 29 - Debtors 13 490 - 112 - 602 670 Cash at bank and in hand 35 - - - 35 76

554 - 112 - 666 746

Current liabilities 14 (283) - (19) (302) (542)

Net current assets / (liabilities) 271 - 93 - 364 204

Total assets less current liabilities 1,088 104 25,210 5,732 32,134 31,314

Funds General fund 18 926 - - - 926 831 Property revaluation reserve 16,18 162 - 23,791 - 23,953 23,949 Music fund 15 - - - 2,666 2,666 2,373 Other funds 15,16,17 - 104 1,419 3,066 4,589 4,161

1,088 104 25,210 5,732 32,134 31,314

The financial statements were approved by the Chapter at their meeting on 24 th July 2013 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 2013 2013 2012 2012 £000 £000 £000 £000

Net cash outflow from operating activities 19 (1,148) (492)

Returns on investments Rents received net of costs 561 563 Interest and dividends received 316 292

877 855 Capital expenditure and financial investment Sale proceeds of investments less amounts reinvested 151 11 Purchases of furniture and equipment (68) (73)

83 (62)

Cash inflow/(outflow) before management of liquid resources and financing (188) 301

Management of liquid resources

Net decrease in liquid resources 20 - -

Increase (decrease) in cash (188) 20 301

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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 2013 2013 2013 2013 2013 2012 £000 £000 £000 £000 £000 £000 Voluntary income Congregational collections and giving 67 - 63 - 130 129 Donations 205 65 48 - 318 257 Income from appeals and fundraising 30 - 58 - 88 139 Tax recoverable under Gift Aid 54 - - - 54 58 Income from Friends and local trusts - - 127 - 127 178 Legacies 3 - 65 - 68 -

359 65 361 - 785 761

Grants receivable Church Commissioners - - 118 - 118 123 Heritage Lottery Fund - - 348 - 348 - Other revenue and capital grants - - 62 - 62 69

- - 528 - 528 192

Charges and fees arising in the course of mission Facility and other fees 129 - - - 129 119

Income from activities generating funds Charges to visitors 558 - - - 558 587 Gross income of shop, refectory and other trading activities 2,239 - - - 2,239 1,917 Other external charges - - - - - 2 2,797 - - - 2,797 2,506 Income from property and investments Income from investment property 588 - - - 588 591 Income from other investments 346 - - - 346 327

934 - - - 934 918

Other income Other items 1 - - - 1 25

Total incoming resources 4,220 65 889 - 5,174 4,521

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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 in cluding the Christmas market. A summary of the trading results for the year, which have been consolidated into Chapter accounts is shown below. Audited accounts have been prepared and filed with the Registrar of Companies.

2013 2012 £000 £000

Turnover 2,238 1,917

Cost of sales (941) (711) Gross profit 1,297 1,206

Other operating charges (904) (820) Other operating income - -

Operating profit 393 386

Interest receivable 1 1 Profit on ordinary activities before donation 394 387

Donation to the Chapter of Winchester (394) (387)

Profit for the financial year - -

The Net Assets of Winchester Cathedral Enterprises Limited at 31 March 2013 1,004 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 31 March 2010 the company operated the Cathedral box office facility for both internal and external events. S ince 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 2013 it had net assets of £1 (2012: £1).

3 Cost of generating funds

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2013 2013 2013 2013 2013 2012 £000 £000 £000 £000 £000 £000 Costs of facilities for visitors 94 - - - 94 86 Costs of services directly recoverable (3) - - - (3) 42 Gross costs of shop, refectory and other trading activities 1,838 - - - 1,838 1,531 General marketing costs 154 - - - 154 183 Costs of appeals and fund raising 74 - - - 74 48 Investment property costs 27 - - - 27 28 Investment manager’s fees 29 - - - 29 35

2,213 - - - 2,213 1,953

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4 Expenditure on mission Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2013 2013 2013 2013 2013 2012 Ministry £000 £000 £000 £000 £000 £000 Clergy stipends and working expenses 16 - 121 - 137 137 Clergy housing costs 44 - - - 44 16 Clergy support costs 58 - - - 58 45 Services and music 742 - 183 - 925 916

860 - 304 - 1,164 1,114

Cathedral and precincts upkeep Major repairs and restoration 195 - 129 - 324 272 Maintenance and interior upkeep 256 - 15 - 271 281 Cathedral insurance 91 - - - 91 85 Precincts, security and gardens upkeep 184 - 14 - 198 200 Support costs 26 - - - 26 78

752 - 158 - 910 916

Education and outreach Educational activities 69 - - - 69 101 Archives and library 84 - - - 84 85 Charitable and other giving 11 - 50 - 61 54

164 - 50 - 214 240 Other expenditure on mission Heritage Lottery Fund Project - 11 450 - 461 49 Irrecoverable VAT 39 - - - 39 23

39 11 450 - 500 72

Total expenditure on mission 1,815 11 962 - 2,788 2,342

5 Support costs Direct Support Total Direct Support Total costs costs costs costs 2013 2013 2013 2012 2012 2012 £000 £000 £000 £000 £000 £000

Costs of generating funds 2,122 91 2,213 1,828 125 1,953 Ministry 938 226 1,164 889 225 1,114 Cathedral and precincts upkeep 714 196 910 737 179 916 Education and outreach 190 24 214 216 24 240 Other expenditure on mission 500 - 500 72 - 72 Governance costs 159 - 159 148 - 148

4,623 537 5,160 3,890 553 4,443

Annual Report Statutory Supplement and Audited Accounts - Page 32

6 Governance costs 2013 2012 £000 £000 Auditors' remuneration: Audit services 17 16 Accountancy and other services 4 - Taxation advice 12 7 Governance and strategic planning 126 125

159 148 7 Employees 2013 2012 Staff costs during the year were as follows: £000 £000

Salaries and stipends 1,754 1,669 Social security costs 128 121 Other pension costs 137 95

2,019 1,885

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

2013 2012 Cathedral staff 16 16 Administration 13 13 Education 2 2 Maintenance 13 12 Shop and Refectory 24 23 Visitor services 5 5

73 71

One member of the Chapter, the Receiver General, received remuneration during the year of £76,000 (2012: £70,000). 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 £7,596 (2012: £6,367) was reimbursed to four members of the Chapter during the year in respect of travelling and o ther out of pocket expenses.

8 Auditors’ remuneration

The total remuneration receivable by the auditors from the Chapter, Win chester Cathedral Enterprises Limited and Winchester Cathedral Box Office Limited was as follows:

2013 2012 £000 £000

Audit services 17 16 Accountancy and other services 4 - Taxation advice 12 7

33 23

Annual Report Statutory Supplement and Audited Accounts - Page 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 2012 86 - 13,536 - 13,622 Change in use - - - - - Additions - - - - - Change in market value 3 - 13 - 16

At 31 March 2013 89 - 13,549 - 13,638

10 Investments

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

Investments at market value 1 April 2012 (Consolidated) 500 - 890 5,023 6,413 Additions 27 - 48 268 343 Proceeds from disposals (30) - (53) (299) (382) Transfers (92) 104 (132) 120 - Net increase/( decrease) on disposals and revaluations 62 - 110 618 790

Investments at market value 31 March 2013 467 104 863 5,730 7,164

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

Market Value Carried Forward (Consolidated) 467 104 876 5,732 7,179

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

Investments (Chapter) 477 104 876 5,732 7,189

2013 2012 £000 £000

Equity funds 5,170 4,178 Fixed interest funds 932 908 Hedge funds - 358 Portfolio funds 124 - Property funds 192 221 Other managed funds 745 748

Investments at market value 7, 164 6, 413 Other liquid resources 13 13 Cash fund 2 115 Shares in subsidiary companies 10 10

7,189 6,551

Annual Report Statutory Supplement and Audited Accounts - Page 34

11 Non-investment property

Consolidated Unrestricted Designated Restricted Endowment Total funds funds funds funds funds Valuation £000 £000 £000 £000 £000 At 1 April 2012 1,590 - 10,489 - 12,079 Additions 1 - - - 1 Depreciation - - (11) - (11)

At 31 March 2013 1,591 - 10,478 - 12,069

Chapter Unrestricted Designated Restricted Endowment Total funds funds funds funds funds Valuation £000 £000 £000 £000 £000 At 1 April 2012 220 - 10,704 - 10,924 Additions - - - - - Depreciation - - (12) - (12)

At 31 March 2013 220 - 10,692 - 10,912

Non-investment properties are held and used as follows: Long Freehold leasehold Total At 1 April 2012 £000 £000 £000 For Cathedral administration and workshops 1,282 - 1,282 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 10,704 220 - 10,924 Eliminated on consolidation (215) - (215) For Cathedral trading activities 1,370 1,370

Consolidated total 11,859 220 12,079

Long Freehold leasehold Total At 31 March 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

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12 Cathedral plant and equipment

Consolidated Chapter £000 £000 Cost At 1 April 2012 660 202 Additions 67 36

At 31 March 2013 727 238

Depreciation At 1 April 2012 530 189 Charge for the year 58 18

At 31 March 2013 588 207

Net book value

At 31 March 2013 139 31

At 31 March 2012 130 13

13 Debtors Consolidated Chapter 2013 2012 2013 2012 £000 £000 £000 £000

Winchester Cathedral Enterprises Limited - - 337 513 Other debtors 263 136 256 127 Prepayments 30 42 9 30

293 178 602 670

14 Current liabilities Consolidated Chapter 2013 2012 2013 2012 £000 £000 £000 £000

Trade creditors 108 101 46 79 Social security and other taxes 38 46 31 38 Other creditors 152 348 180 347 Accruals 61 83 45 78

359 578 302 542

Annual Report Statutory Supplement and Audited Accounts - Page 36

15 Endowment funds

Consolidated and Chapter At 1 April Net Investment At 31 March 2012 Incoming/ gains/ 2013 (outgoing) (losses) in resources the year £000 £000 £000 £000

Appeal fund: Fabric 1,777 - 232 2,009 Music 71 - - 71 Staff 25 - - 25

1,873 - 232 2,105 Music 2,373 - 293 2,666 Permanent endowment 749 - 93 842 John and Kathleen Kyle Memorial Fund for Lay Clerks 80 - - 80 Roger Bruce Ellery 39 - - 39

5,114 - 618 5,732

16 Restricted funds

Consolidated At 1 April Net Investment At 31 March 2012 Incoming/ gains/ 2013 (outgoing) (losses) in resources the year £000 £000 £000 £000

AEV Day deceased 1,104 (102) 110 1,112 Fabric 31 31 - 62 Fabric and worship 46 (1) - 45 Deanery furnishings 18 - - 18 Cathedral charitable 31 2 - 33 Patrick Mace 10 (10) - - Library 27 - - 27 Choristers’ bursary 13 (8) - 5 Thomas-Davies 13 - - 13 Venerable Altar/ Swags - 6 - 6 Woodhouse Trust 5 - - 5 Girls’ choir 6 - - 6 Music 30 - - 30 High Altar Carving Fund 13 (13) - - Tapestry Fund 5 18 - 23 Others under £5,000 17 16 - 33

1,369 (61) 110 1,418 Close property revaluation reserve 23,575 (12) 13 23,576

24,944 (73) 123 24,994

Annual Report Statutory Supplement and Audited Accounts - Page 37

16 Restricted funds (cont'd)

Chapter At 1 April Net Investment At 31 March 2012 Incoming/ gains/ 2013 (outgoing) (losses) in resources the year £000 £000 £000 £000

AEV Day deceased 1,104 (102) 110 1,112 Fabric 31 31 - 62 Fabric and worship 46 (1) - 45 Deanery furnishings 18 - - 18 Cathedral charitable 31 2 - 33 Patrick Mace 10 (10) - - Library 27 - - 27 Choristers’ bursary 13 (8) - 5 Thomas-Davies 13 - - 13 Venerable Altar/ Swags - 6 - 6 Woodhouse Trust 5 - - 5 Girls’ choir 6 - - 6 Music 30 - - 30 High Altar Carving Fund 13 (13) - - Tapestry Fund 5 18 - 23 Others under £5,000 18 16 - 34

1,370 (61) 110 1,419 Close property revaluation reserve 23,790 (12) 13 23,791

25,160 (73) 123 25,210

17 Designated funds Consolidated and Chapter At 1 April Net Investment At 31 March 2012 Incoming/ gains/ 2013 (outgoing) (losses) in £000 £000 £000 £000

Kings & Scribes Project Fund 50 (11) - 39 Sound & Light Fund - 65 - 65

50 54 - 104

Annual Report Statutory Supplement and Audited Accounts - Page 38

18 Unrestricted funds Consolidated At 1 April Net Investment At 31 March 2012 Incoming gains 2013 resources in the year

£000 £000 £000 £000 General fund 1,640 33 62 1,735 Property revaluation reserve 634 - 3 637

2,274 33 65 2,372

Chapter At 1 April Net Investment At 31 March 2012 Incoming gains 2013 resources In the year

£000 £000 £000 £000 General fund 831 33 62 926 Property revaluation reserve 159 - 3 162

990 33 65 1,088

19 Reconciliation of net incoming resources to net cash outflow from operating activities 2013 2012 £000 £000 Net incoming resources before revaluations and disposal of investments 14 78 Less income from property and investments (934) (918) Add property management costs and investment manager costs. 56 63 Depreciation charges 69 67 (Increase ) in stocks (19) (21) (Increase)/decrease in debtors (115) 147 (Decrease) /increase in creditors (219) 92

Net cash outflow from operating activities (1,148) (492)

20 Reconciliation of net cash flow to movement in net funds 2013 2012 £000 £000 Increase/(decrease) in cash (188) 301 Increase /(decrease) in liquid resources - -

Increase/(decrease) in net funds (188) 301 Net funds at 1 April 2012 286 (15)

Net funds at 31 March 2013 98 286

21 Analysis of changes in net funds At 1 April Cash flow At 31 March 2012 2013 £000 £000 £000 Cash at bank and in hand/(Overdraft) 274 (188) 86 Cash balances included in investments 12 - 12

286 (188) 98

Annual Report Statutory Supplement and Audited Accounts - Page 39

22 Capital commitments

There were no capital commitments at 31 March 2013 or 31 March 2012.

23 Contingent assets/liabilities

There were no contingent assets or liabilities at 31 March 2013 or 31 March 2012.

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 bene fits at retirement based on contributions made to the DCS prior to t he date of retirement. The assets of the DCS are held separately from those of the employer. As at the formal valuation at De cember 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, par agraph 9(b) of the financial reporting standard 17 (FRS 17) r equired 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 £26,378. Winchester Cathedral had 13 active members and 6 deferred members in the DCS at 31 March 2013.

In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of Engl and 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 2013 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 e mployer 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%. Addit ional 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.

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

The Friends of Winchester Cathedral This associati on 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 Cha rity’s objects are to raise funds and receive donations to apply to any charitable purpose connected with Winchester Cathedra l. This includes the general upkeep of the Cathedral and the improvement and repair of all other buildings in the Cathedral Clo se, 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 wh o are in need or are suffering hardship.

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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 -13 31 -Mar -13 31 -Mar -13 £000 £000 £000 Gross income 177 1,325 -

Net incoming/(outgoing) resources for the year 80 1,255 -

Net movement in funds 115 1,255 -

Amounts paid or payable to the Cathedral 19 23 -

Gross assets 815 2,300 416

Net assets 514 2,275 415

The above accounts of The Winchester Cathedral Trust, The Carl Klein Trust and the Friends of W inchester Cathedral have been subject to an audit or independent examination under the Charities Act 1993. Only income receivable from the above connected entities has been included in the f inancial 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 reprodu ced 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 £23k (2012: £59k) from The Winchester Cathedral Trust, £113k (2012: £104k) from The Friends of Winchester Cathedral in grants, and £139k (2012: £129k) from The Pilgrims' School (Limited by Guarantee) in respect of rent. During the year the Chapter paid £219k (2012: £205k) in respect of Choristers' school fees to The Pilgrims' School (Limited b y Guarantee), and paid £1 5k (2012: £4k) to Sophie Hacker, the wife of a Cha pter member Canon Roland Riem, in respect of expenditure on arts and exhibitions, and for managing the event "Chronicles of Light".

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