ANNUAL REPORT
STATUTORY SUPPLEMENT AND AUDITED ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2015
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 2014/15
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 ...... 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 ...... 12 444 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 ...... 13 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 ...... 15 4.11 Risk...... 15 555 Financial Review ...... 15 5.1 Reserves Policy ...... 15 5.2 Investment Policy ...... 15 5.3 Investment performance ...... 16 5.4 Cathedral maintenance plan ...... 17 5.5 Five-year trends ...... 17 5.6 Commentary on the 2014/15 results ...... 17 666 Plans for future periods ...... 19 777 Audited Accounts ...... 20
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111 Aims and ObjeObjecccctitititivevevevessss
Winchester Cathedral is the seat of the Bishop of Winchester, the Rt Revd Timothy Dakin, and a centre of worship and mission for the Diocese which includes Hampshire, East Dorset and the Channel Islands.
Vision Our Vision is to discover and live out the beauty of holiness.
Mission Winchester Cathedral as dedicated to the Holy Trinity, seeks in its life to reflect the dynamic love of God revealed in Christ, through being both a servant of others in their journey of faith, and of the world in its search for meaning and inspiration, reconciliation and wholeness.
Purpose To be a community of worship, witness and welcome with Benedictine priorities.
To witness beyond the life of the Cathedral to the universal identity of the Church.
To be a sign of the Kingdom to which God is calling through commitment to justice, the integrity of creation and healing of individuals and communities.
To release and enable within a caring, learning environment, the gifts of all members of the Cathedral community (lay and ordained, staff, volunteers and members of the worshipping community).
To work for collaboration, co-operation and effective communication at all levels of Cathedral life and beyond.
To conserve and develop the beauty of the buildings, contents and estates within our care.
To thrive and not just survive.
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222 CCChapterChapter Reports
2.12.12.1 The Dean
A Cathedral is defined by the Cathedrals Measure 1999 as ‘seat of the Bishop and a centre of worship and mission’. Winchester Cathedral has been very evidently the Seat of the Bishop during 2014-15 as well as a developing ‘hub’ of mission. Evidence of the former has included the regular Episcopal services of ordinations, commissioning of Licensed Lay Ministers and the Chrism Eucharist on Maundy Thursday, all presided over by the Bishop of Winchester. Further, at Evensong on Saturday 12 April the Diocese took leave of Bishop Peter as he prepared to take up responsibilities as Bishop of Bath and Wells. On Friday 19 September the Archbishop of Canterbury, the Bishop of London and the Bishop of Winchester were among those who consecrated David Williams, home-grown in Winchester Diocese, in Winchester Cathedral as Bishop of Basingstoke. This was followed all too soon by the funeral requiem for Bishop Michael Scott-Joynt on Friday 10 October. Bishop John Hind presided at the Eucharist and Bishop Geoffrey Rowell preached to a packed Cathedral representing Bishop Michael’s family, the Diocesan family and the County community. All came to pay tribute to Bishop Michael’s stature both physically and spiritually as well as his instinct for pastoral care and his ability to absorb complex detail. Our thoughts and prayers continue to be with Lou, his ever faithful companion and wife, and the family.
The special services throughout the year witness to the Cathedral as a hub of mission. Harvest weekend, Law Sunday, the new initiative of a Healthcare celebration, the marking of the completion of Deanery Mission Actions Plans with a special service, civic services for the City, the County and in commemoration of the outbreak of WW1, Education Sunday (this year in partnership with King Edward VI School, Southampton) are but a sample. Throughout all this, choral excellence remains the hallmark of Winchester Cathedral. Our own Pilgrims’ School in the Close is our Choir School, but also keeps us closely in touch with some of the highest aspirations in contemporary education. Jeremy Griffiths very effectively led the School as Headmaster during the calendar year 2014 and has now been succeeded by an excellent appointment in Tom Burden. The Learning Centre keeps us in touch with the whole network of Hampshire Schools and we have a Memorandum of Agreement with the University of Winchester.
Developing the significance of hub for the Cathedral is a major part of the Heritage Lottery Fund Project and associated works. Once completed, they will provide a whole new opportunity for engagement with additional partners. However, there is no gain without pain! Areas of the Cathedral are the preserve of hard hats and high visibility jackets; gleaming new scaffolding is evident inside and outside the Cathedral. Choir, virgers and guides are amongst those who are temporarily relocated. The Winchester Bible is undergoing conservation one volume at a time. Already the potential gain is evident. The transformed former Education Centre was opened by Dame Mary Fagan, Chairman of the Winchester Cathedral Trust, as one of her last events as Lord-Lieutenant on Tuesday 2 September. A new partner emerged with the loan of the first restored volume of the Winchester Bible to the Metropolitan Museum in New York for three months commencing on 8 December. A display of one volume of the Bible, with turning pages technology, is being trialled in the North Transept. The associated Appeal has reduced from £3.5m outstanding to £2.4m outstanding. This was substantially helped by a grant of £500k from the fund set up by Government to recognise the contribution being made by cathedrals in marking the anniversary of the First World War.
The responsibility for enabling the Cathedral to be the Bishop’s seat and hub of mission is vested in Chapter with the Cathedral Council as ‘critical friend’. The make-up of Chapter has changed during the year. Dr Helen Harvey formally stepped down, after three years of sterling service, on the same day as we welcomed George Medd as Chapter member and Lay Canon on Sunday 18 May. Lord Plant was renewed by the Bishop for a further term of office. Debbie Thrower was welcomed as Lay Canon and member of Chapter on Sunday 9 November. So the work continues. It is evidently a work of
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building – but not only physically, but also metaphorically as our partnerships enable us to be builders of community.
The Very Revd James Atwell, Dean of Winchester
2.22.22.2 The Receiver General
I am delighted to report that, for a fifth successive year, that we have exceeded our budgetary targets and are able to record a positive financial outcome of £13k for the year. That this has been achieved against a challenging national and international financial background is doubly pleasing. Much credit must also go to the discipline of our budget holders who have kept tight control on expenditure.
Our watchword for this year’s Annual Report is ‘Building Communities’ and mention of this byword will be made by others elsewhere in this Report. It is particularly gratifying for me to acknowledge how many members of our broad community have contributed in so many ways to our ongoing Projects. One example worthy of special mention is the contribution made by our storytellers who have played a key role in developing concepts for our new permanent exhibitions. A parallel effort has also been made by the South Transept Team who have helped to promote the temporary exhibition in the North Transept and are continuing to gather visitor feedback, while the Volunteer action and Advisory core team continue to help play a vital role in the delivery and development of the Activity plan.
The building works for the Kings and Scribes project proceed apace. There has been a significant amount of physical movement of the Collections and relocation of people this year, with compounds being built on the north and south side of the Cathedral. My thanks to everyone for their patience. Credit goes to the team led by our Construction Site Manager, Project Manager and our Curator, Jo Bartholomew, who have overseen this enormous task. The opening of the refurbished Learning Centre in September was a wonderful occasion and a celebration of the first major deliverable milestone of our capital works programme. The delight on the Director of Learning’s face when she received the key to the centre was reward enough for all of us who have worked tirelessly to make this happen. With the arrival of Emma Hart, our new Learning Officer, a new post funded by HLF, the learning team has begun work on delivering the Activity Plan learning objectives. Another very visible and striking evidence of the scope and complexity of the major restorative works that we are undertaking was the hoisting of the huge scaffolding frame into place above the presbytery roof which received the attention of the television and media over the two days of the operation. We have completed the Strip out and Enabling part of our main programme.
A major initiative this year has been to outsource the operation of our Refectory and catering operation to Kudos last August. The new arrangements have brought significant capital investment in the Refectory while ensuring beneficial defined income streams for the next three years to support the mission and ministry of our Cathedral. Work continues on the development of menus and broadening the catering offer. Chapter are extremely grateful for the ongoing support of the Refectory volunteers who continue to provide an invaluable service and Benedictine style welcome to our guests.
Huge efforts have been made on our Capital Fundraising Programme, fronted by Winchester Cathedral Trust and the Friends of the Cathedral, allowing us to come within £2.4m of reaching our fundraising target for our project. The loan of Volume One of the Winchester Bible to the Metropolitan Museum of Art in New York also saw new fundraising activity by our American Friends of Winchester Cathedral Inc.
My thanks to everyone for their continued efforts in supporting our Cathedral to thrive not just survive! Canon Annabelle Boyes, Receiver General and Canon Treasurer Annual Report Statutory Supplement and Audited Accounts - Page 5
2.32.32.3 Worship
This year has been a time of excitement and transition in the Music and Liturgy department. We waved goodbye to Justin Miller who moved to Worcester Cathedral and welcomed Timothy Parsons as a new organ scholar; Richard Pratt and Andrew Hayman joined the choir as tenors; Emma Law, my PA, left in January with Lynn Hayward arriving in the Spring and seeing us through the busy Easter period; now Richard Pratt has also become our new administrator, and his previous experience of this work in Southwell has proved extremely useful.
July was my first experience of the Southern Cathedrals Festival in Winchester which (in the centenary of the outbreak of the ‘Great War’) took war and peace as its theme. Thematic highlights included Britten’s ‘War Requiem’ Agnus Dei, the Prayers of Dietrich Bonhoeffer and a ‘War Horse’ outreach concert.
This centenary anniversary was also marked within worship in two very different ways: a large County service, which included the unforgettably poignant moment when a lone piper played; and the youth of Hampshire followed his call, and a multimedia late night vigil.
We were thrilled to host the Consecration of the Bishop of Basingstoke in September, a spectacular service containing new elements chosen by Bishop David as well as liturgical symbolism from the early church.
In November we took the Girl Choristers on a trip to Stavanger where they joined the Stavanger girls to sing at a concert and a memorable All Saints’ service. It was good to see firm friendships being forged between the different choir members.
The autumn was also the time of the ‘Big Move’. Boxes of robes and music were carried out of the practice rooms and we began using the North Transept for vestry prayers. Such is the professionalism of our musicians and wardrobe team that, musically and visually, you would not know there was a difference.
Andrew Lumsden went on Sabbatical in the Spring Term and I would like to pay tribute to George Castle and Timothy Parsons who stepped up admirably and took the choir onwards throughout the spring.
Throughout the year you may have noticed some liturgical changes too, including a redesigned Advent Carol service, a poignant Good-Friday crucifix by Sophie Hacker, and an Easter Vigil which moved throughout the building, starting amongst the tombs and finishing in light and joy.
We could not have achieved any of these things without the many volunteer groups who help our worship run so smoothly. The bellringers dedicatedly call us to worship (and the bells are sounding lovelier than ever after some repair work), the sidesmen welcome and guide our worshippers, the Chamber and Nave choirs enhance our choral life, the wardrobe team still steadfastly turn our choristers out looking immaculate in the midst of building works, our servers, our readers and intercessors serve us faithfully. I would also like to particularly thank our virgers, and Andrew, George, Sue, Lynn, Emma and now Richard, who have often worked long hours behind the scenes to give our worship a professional polish.
Canon Sue Wallace, Precentor and Sacrist
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2.42.42.4 Education and Spirituality
It takes hard work behind the scenes to prepare the exhibitions opening in 2017, nowhere more so than in the Cathedral Collection of books and artefacts and in our Cathedral Archive. We must care for these precious tokens of our community life over the centuries and ensure their safety as they are moved about and used for interpretation.
Our Curator and two Archivists have been tireless in their labours, supported ably by the HLF project team and works staff. We have sought outside support whenever the load could be shared. I think immediately of the army cadets drafted in to move hundreds of boxes of books from the Triforium Gallery to the spaces over the eastern chapels. They performed their duty safely, with good humour and great efficiency.
On a smaller scale our own volunteers helped to move the Cathedral Archive to the Hampshire Record Office. The benefits of doing this will become increasingly apparent as time goes on. A combination of developing the online catalogue and increased public access to most of the documents will mean that many, both locally and beyond, will be able to use the Archive as a point of reference and research, alongside related material.
Gill Rushton, having been our Hampshire Record Office Archivist, is now working till 2016 for the Cathedral on the online-catalogue. David Rymill has taken over as Archivist. Stuart Bridges has been offering advice on Record Management, helping to co-ordinate historic plans informing our current programme of works. Several manuscripts have been conserved by the HRO team.
The Arts & Exhibitions programme continued apace. In June 2104 we enjoyed the hugely successful fund-raiser, The World of Jane Austen, followed in July by River Itchen: From Source to Sea. In September we joined the first Winchester Poetry Festival, installing sculptures, prints and poems commemorating the Great War. A month later horses entered the Cathedral for the first time since the 17th Century, on a film-loop called Stable. A charming exhibition came to us in The World Wide Weave by members of the Camphill Foundation from across the world, while Joe Low’s small exhibition Sleeping Rough provoked our prayers for Winchester’s homeless.
Gregory Clifton Smith’s work is usually hidden as he visits sick and housebound members of the community faithfully. He has also encouraged many chaplains by his recognition of their sometimes lonely ministries on the margins of church life.
Emma Hart’s arrival as Learning Officer, an HLF-funded post, has given Cheryl Bryan, now renamed our Director of Learning, a much needed colleague. The year has been very busy with an increase in the number of children visiting to focus on the Anglo-Saxons since the change in the National curriculum. March and April 2015 saw an increase of over 800 children compared with the same time in 2014.
The former Education Centre has been refurbished and renamed the Learning Centre. It is a beautiful building whose medieval heart has been uncovered. The response from the teachers has been very positive and it’s a joy to welcome children to work in such lovely surroundings. So much more is promised when the new pavilion and its grounds are opened this year.
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 2015 were as follows:
The Dean The Very Revd James Atwell Vice Dean & Canon Chancellor The Revd Canon Dr Roland Riem Receiver General & Canon Treasurer Mrs Annabelle Boyes Canon Precenter & Sacrist The Revd Canon Sue Wallace Lay Canon Prof the Rt Hon Lord Plant of Highfield Lay Canon Dr Helen Harvey (to May 14) Lay Canon Mr George Medd (from May 14) Lay Canon Ms Debbie Thrower (from Nov 14)
3.43.43.4 Officers of the Foundation High Steward The Duke Of Wellington Counsellor His Honour Michael Brodrick Clerk at Law Julian Hartwell
3.53.53.5 Council Members of the Cathedral Council during the year to 31 March 2015 were as follows: Miss Jean Ritchie QC (Chair) (Bishop’s appointment) The Very Revd James Atwell (ex officio) Mrs Annabelle Boyes (Chapter appointment) Brigadier Alastair Bruce of Crionaich KStJ OBE (Bishop’s appointment) Mr David Evans (Bishop’s appointment) Mr Alan Lovell DL (Bishop’s appointment) Lady Portal MBE DL (Bishop’s appointment) Surgeon Vice Admiral Anthony Revell CB (elected by Cathedral community) The Revd Canon Dr Roland Riem (Chapter appointment) Mr Martin Rudd (Bishop’s appointment) The Revd Canon Jo Stoker (appointed by College of Canons) The Revd Canon Dr Ian Tomlinson (appointed by College of Canons) Mr Paul Wing (elected by Cathedral community) The Revd Dr Andrew Wood (Bishop’s appointment)
Visitor: The Rt Revd Timothy Dakin, Lord Bishop of Winchester
Mr Stephen Adam (Secretary)
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3.63.63.6 College of Canons Visitor Lord Bishop of Winchester, The Rt Revd Timothy Dakin
The Chapter of Winchester The Dean of Winchester , The Very Revd James Atwell Vice Dean & Canon Chancellor, The Revd Canon Dr Roly Riem Receiver General & Canon Treasurer, Mrs Annabelle Boyes Canon Precentor, The Revd Canon Sue Wallace Prof the Rt Hon Lord Plant of Highfield Dr Helen Harvey (to May 2014) Mr George Medd (from May 2014) Ms Debbie Thrower (from Nov 2014)
Bishop’s Staff The Bishop of Basingstoke, The Rt Revd Peter Hancock (to 7 June 2014), and from 19 Sept 14 The Rt Revd David Williams The Bishop of Southampton, The Rt Revd Jonathan Frost The Dean of Guernsey, The Very Revd Paul Mellor (to 31 August 2014) 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) (to 31 September 2014) Emeritus The Revd Canon Geoff Houghton (2011) The Revd Canon David Snuggs (2011) (to 31 August 2014) Emeritus The Revd Canon Dr Brian Rees (2011) The Revd Canon Norman Boakes (2011) (to 31 August 2014) Emeritus The Revd Canon Dr Andrew Goddard (2012) Mr Andrew Robinson (2012) The Revd Canon David Williams (2012) (until 18 Sept 14) The Revd Canon Stephen Pittis (2013) The Revd Canon Peter Seal (2013) The Revd Canon Rye Smith (2014) (from 25 June 2014 to 31 August 2014) Emeritus
Ecumenical Canons The Abbot of Fleury (2011) The Revd Canon Paul Townsend (2011) Annual Report Statutory Supplement and Audited Accounts - Page 9
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 Dr Roland Riem – Vice Dean & Canon Chancellor (Chapter) Mrs Annabelle Boyes - Receiver General & Canon Treasurer (Chapter) Mr Nigel Atkinson, Lord Lieutenant of Hampshire (to February 2015) Mr Edmund Byers Mr John Pringle Mr Martin Reid (from July 2014) Mr Christiaan Beech - Head of Finance (in attendance)
3.93.93.9 Fabric Advisory Committee
Professor Martin Biddle (Chair from October 2013) Ms Zuleika Dobson Mr Anthony Feltham-King Mr Christopher Gordon Mr John Spokes QC Professor Michael Wheeler Professor Barbara Yorke The Revd Jeremy Davies The Very Revd James Atwell - The Dean (in attendance) Mr Carlton Bath, Clerk of Works (in attendance) Mr Nick Cox, Cathedral Architect (in attendance) Dr John Crook, Cathedral Archaelogist (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) The Revd Canon Dr Roland Riem (Director) Mr Damien Carpanini (Director) (from Oct 2014) Mr R upert Ellwood (Director) Mr Stan Kaufman (Director) Mr Christiaan Beech (Company Secretary)
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3.113.113.11 Auditors
Grant Thornton UK LLP 1 Dorset Street Southampton SO15 2DP
3.13.13.123.1 222 Bankers and other professional advisers
Bankers National Westminster Bank plc High Street Winchester SO23 9AW
Clerk at Law Mr Julian Hartwell LLB Martyrwell, Cheriton Alresford, Nr Winchester SO24 O2A
Occupational Health Adviser Dr S Chapman Swift Medical Services, St Clements Partnership Tanner Street, Winchester SO23 8AP
Property Agents Carter Jonas 9a Jewry Street Winchester SO23 8RZ
Quantity Surveyors David Bailey Associates 11 Clearmount Road Weymouth Dorset DT4 9LD
Solicitors Godwins 12 St Thomas Street Winchester SO23 9HF
Media Advisor Chilton Media Law 8 West Street London WC2H 9NG
Stockbrokers & Investment Managers Cazenove Capital Management Ltd 12 Moorgate London EC2R 6DA
Investment Managers CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ
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3.13.13.133.1 333 Volunteer Section Heads Other Section HeadHeadssss
Mrs Gillian Allen, Litter Pickers Sue Armstrong, Sunday morning Mrs Margaret Braddock, Holy Dusters / Brass Band coffee team Mr Nick Bucknall, Bell Ringers Jo Bartholomew, Curator cleaning Mrs Mary Calle, Readings Carlton Bath, Workshop Mrs Audrey Constantine, Intercessions Cheryl Bryan, Children’s education Mrs Sheena Crawford-Moody, Events Stewards Mel Donaldson. Cloisters Mrs Anna Diamond, Broderers Daren Gibb, Virger’s Mr Julian English , South Transept Co-ordinator Susie Gilmour, Shop Mrs Brenda Fletcher, Information Desk Emma Sharpe, Gardener’s Mrs Andrea Hall, Wardrobe Team Sarah Williams, St. Christopher’s Mr Paul Wing, Lunchtime Recitals and family welcomers 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 Mrs Rosemary Howland, 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, and on the 10 December 2014.
4.24.24.2 Relationship with the Diocese of Winchester The Diocesan Bishop is The Right Reverend Timothy Dakin, Lord Bishop of Winchester.
The Cathedral is the formal ‘seat’ of the Bishop of Winchester, and he is the official Visitor. After consultation with the Chapter and subject to any provision in the Statutes, he may officiate in the Cathedral and use it in his work of teaching and mission, for ordinations and synods and for other Diocesan occasions and purposes. The Bishop is a valued friend and advisor to the Cathedral, which in turn seeks to support the Bishop’s work of leading the Diocese in mission and ministry. Chapter members actively participate in the Mission and Ministry of the Diocese, Diocesan committees and working groups. The Dean serves on the Bishop’s Staff. The Bishop of Winchester is supported by two Suffragan Bishops – The Bishops of Basingstoke and Southampton.
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4.34.34.3 Organisational structure ––– the body corporate The members of Chapter, the Council, and the College of Canons form the corporate body of the Cathedral.
The Chapter of the Cathedral The Chapter consists of the Dean, two Residentiary Canons, the Receiver General & Canon Treasurer and three Lay Canons, members recruited for their skills and expertise in specific areas of the Cathedral’s life. Chapter holds the executive role of the corporate body and is responsible for leadership, policy, strategy, vision, and also has fiduciary duties. Residentiary members of Chapter are responsible for different portfolios within the Cathedral’s life – mission and social responsibility, pastoral care and spiritual development, education and visits, liturgy and music and patronage. These departments are supported by a range of committees and teams. The Receiver General & Canon Treasurer has overall responsibility for cathedral support services and resources.
The Cathedral Council The Council is an advisory and consultative body, established to support the work of the Chapter and to ensure accountability to the wider community and Diocese. It provides a sounding board and guidance for Chapter as well as offering an informal ‘watchdog’ role to ensure that the Cathedral fulfils its legal responsibilities. It also has a formal role if any amendments to the Cathedral’s Constitution and Statutes should be proposed.
The College of Canons The College consists of senior clergy and lay members from across the Diocese, appointed by the Bishop, along with a number of ecumenical canons (representatives from other denominations). Its role is to ensure that the Cathedral is open to informed opinions, observations and comment from churches within and beyond the Diocese.
4.44.44.4 Organisational structure ––– other key committees and groups The Finance and Investment Advisory Committee This committee is a sub-committee of Chapter and is responsible for advising Chapter in connection with its responsibilities in the field of financial and investment management.
The Fabric Advisory Committee This committee is responsible for ensuring that any work to the fabric of the Cathedral is done with proper regard to due and legal process. It includes the Cathedral Architect, the consultant Archaeologist, and other experts in the conservation and repair of historic buildings.
The Cathedral Community Membership of the Cathedral Community is open to all those who apply for membership and are aged sixteen years or more, who worship at the Cathedral, or who work for or hold office linked to the Cathedral. The Community meets once a year for an open meeting. It has no statutory powers but allows for open discussion of any issue of interest within the life of the Cathedral. From this body, two members are elected to the Cathedral Council.
4.54.54.5 Other organisations associated with the work of the Cathedral The Friends of Winchester Cathedral The Friends of Winchester Cathedral is an independent network of supporters of the Cathedral. They continue to provide very substantial and welcome support both to the fabric of the Cathedral and to its environment, and in their generous support of the boys and girls who sing in the cathedral choirs.
Winchester Cathedral Trust Established in 1983, Winchester Cathedral Trust is an independent charity set up to receive money raised from appeals made on the Cathedral’s behalf and to make grants in accordance with the terms
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of the Trust Deed to support the development of the Cathedral. The Trustees are drawn from across the region.
Winchester Cathedral Enterprises Limited This limited company is a wholly-owned subsidiary of Chapter. It undertakes a range of commercial activities within and around the Cathedral and in the Visitors Centre. All taxable profits are covenanted to Chapter and details of its trading activities are summarised within the statement of consolidated financial activities and the notes to the accounts. The Directors (of whom are two Chapter members) are appointed by the Chapter.
The Friends of the Dean Garnier Garden The Friends of Dean Garnier Garden was established in 1994 to maintain the Garden, the fabric of which remains in the ownership of the Cathedral. The Dean Garnier Garden, formerly the Deanery Rose Garden, is available for the use of the community of Winchester and for all visitors to The Close.
Carl Klein Trust An independent charity, the Carl Klein Trust supports two dwellings dedicated for lay clerks and gives grants for the welfare of lay clerks.
4.64.64.6 Chapter appointments and training The Dean is appointed by the Crown. The two Residentiary Canons (Canon Precentor and Canon Chancellor, called Commissioners’ Canons) 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 changes in 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 Annual Report Statutory Supplement and Audited Accounts - Page 14
power of investment in the Trustee Act 2000; the improvement or development of property belonging to the Cathedral, except that endowment funds may not be used to improve or develop the Cathedral itself and its ancillary buildings.
4.104.104.10 Public Benefit Although it is not a reporting requirement of the Church Commissioners, nevertheless Chapter confirm that they have complied with section 4 of the Charities Act 2006 to have regard to the public benefit guidance published by the Charity Commission in determining the activities of the Cathedral. The Cathedral not only serves the community daily in its religious and charitable work, but is an active resource of national importance in the promotion of religion, music, education, history and architecture.
4.114.114.11 Risk A corporate risk register has been completed and accepted by Chapter. This identifies and measures the possible impact of perceived risks and sets out the actions taken to manage and mitigate them. Progress will be reviewed every year by Chapter. There is a departmental risk register. There is a Capital project register.
555 Financial 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 Annual Report Statutory Supplement and Audited Accounts - Page 15
Responsible Investment (SRI). The Chapter’s SRI policy is based in turn on the social, environmental and ethical policies that are adopted by the Cathedral’s principal Investment Managers, Cazenove Capital Management, and for the smaller proportion of its portfolio, the policies operated by CCLA. Responsibility for the management of this policy rests with the Chapter, and instructions are given to the Cathedral’s investment managers to carry out stock transactions on a day to day basis.
5.35.35.3 Investment performance Property Investments The Dean and Chapter own property to house clergy and staff and to use for offices. Other property is held for investment purposes and is rented out on a commercial basis where possible to generate funds for the day-to-day operation of the ministry of the Cathedral. Properties were revalued at market value on 31 March 2014. £000 Rental income 607 Professional services (19) Repairs (37 ) Net income 551
Yield on investment properties
Capital value investment property (£000s) 16,508 Net income yield 3.3% CBF Property Fund income yield 5.8%
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 2014/15 rental income reduced due to an increased 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 £524k in 2010/11 to £607k in 2014/15.
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 201 43 92 33 6
CCLA 14 - 34 48
215 43 126 384
Gains on revaluations/disposals 294 Management fees (30)
Total return on other investments 648
Return on other investments £000
Market value of other investments 7, 715 Return 8.4 % Composite index agreed with Cazenove 8.7 %
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The financial year return from investments was 7.4% compared to the benchmark return of 8.7%. Over 5 years the return from investments was 9.4% per annum, compared to the benchmark return of 7.6% per annum. Post the financial crisis quantitative easing continues to drive asset prices higher with equity markets reaching highs and bond yields at record lows. In the past year international equities have been the best asset class performer, driven by a very strong U.S. economy, continuing poor returns on debt instruments and delays to the reversal of quantitative easing. 2015 is already seeing some reversal of these trends. The Cathedral adopts a long term investment strategy and has increased diversification of its investments.
At 31 March 2015 our total investments excluding direct property holdings totalled £7.72m, of which 65% were held in listed equity funds, 11% in fixed interest, and 24% 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 10 /11 20 11 /1 2 201 2/13 201 3/1 4 2014 /1 5 £000 £000 £000 £000 £000 Total income 4,799 4, 521 5,174 5,299 8,868 * WCEL covenant to Chapter 253 387 394 403 374 Other visitor income 501 587 558 600 603 Rental income 524 591 588 635 607 Investment income 326 327 346 366 384 Cathedral repairs/upkeep 1,435 916 910 977 853 Other expenditure on mission 1, 304 1,426 1, 878 1, 701 4,889 General Fund result (before capital gains) 14 25 33 12 13
* Includes grants of £4,733k received relating to the Cathedral projects. (2013/14 included grants of £291k)
5.65.65.6 Commentary on the 2012014444////11115555 results The Dean and Chapter present the audited accounts for the Year to 31st March 2015. A summary of the financial statements is that, despite a very challenging year, we have achieved an operating surplus for the year of £13k, which is a slight improvement over the balanced budget originally set for the year. Commentary on the key financial indicators is set out below.
WCEL Covenant to Chapter
All profits from the Cathedral’s trading company, Winchester Cathedral Enterprises Ltd, which includes the activities of Retail, Catering, Box Office and Events operations, are covenanted to Dean and Chapter. The total profit for the year was £374k, down £29k from the £403k achieved in 2013/14.
The figure of £403k for 2013/14 included the profits from the Flower Festival held in June 2013. When this is excluded from the figures the “like for like” performance of WCEL showed a slight improvement this year.
In August 2014 the Refectory and Catering operation was outsourced to the catering company Kudos who bring with them a huge wealth of retail service knowledge. This has seen the income received change from a direct turnover to a commission based system. Accordingly the Turnover received Annual Report Statutory Supplement and Audited Accounts - Page 17 from the Refectory shows a reduction of £518k for the year. However, in reality, the new approach to Catering has seen an increase in our underlying profitability from this activity.
Visitor Income
The start of a major works programme inevitability brings with it disruption and inconvenience for visitors. However, a number of measures were put in place to mitigate and minimise this impact and the result was that paying visitor numbers were 112,000 unchanged compared to the previous year. The Entrance Desk income received was slightly up (by £3k) to £603k in total.
Analysis of information from other attractions including figures from VisitEngland, shows that the Cathedral’s performance was in line with the national trend.
Voluntary Income and Grants receivable
Income from congregational collections, giving and donations was maintained and Gift Aid continues to make a significant contribution. The Deanery bookstall contributed £34k and the Cloisters shop £35k.
Grants receivable in 2014/15 increased sharply to £4,733k (compared to £291k in 2013/14) as the main elements of work related to the Cathedral projects came online during the year. The majority of the income received was from the Heritage Lottery Fund. Funding was also received from Winchester Cathedral Trust and the Friends of Winchester Cathedral.
Property Income
2014/15 saw an unusually high number of changes in occupancy of our letting properties and this resulted in a reduction of income from rental properties to £607k ( down £28k on the previous year). However this also provided the opportunity to access the properties in turn and make improvements to the fittings and decoration which will have a benefit for many years to come. All properties were occupied at the year end.
Investment Income
The investment income received increased to £384k for the year (up £18k compared to the previous year). This is due to favourable market conditions.
Restricted funds
There was an increase in the value of Restricted Funds to £33.7m (up £2.5m from £31.2m in 2013/14). The construction of the New Learning Centre, which will open in 2015/16, contributed £1.3m to the increase while the remainder can be attributed to the annual review of the overall property portfolio.
Expenditure
The rapid progress on key elements of the overall Cathedral projects (installation of scaffolding and other preparatory works) has seen expenditure in this area rise to £3.4m for the year (compared to £352k in 2013/14).
The impact on Turnover noted above arising from the outsourcing of Catering is similarly reflected in the reduction of expenditure in this area which was £389k (compared to £905k in 2013/14). As the outsourcing took place partway through the year there will be a further reduction in both Turnover and Expenditure in 2015/16 figures.
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Services and music expenditure increased partly due to 2014/15 being the first full year to reflect the change to more modern terms and conditions for Lay Clerks which has resulted in a higher basic salary for choir members. Expenditure on Chorister training has also increased in the year.
Taking the opportunity for investment spend on the maintenance of close properties as they became vacant during the year resulted in an increase in maintenance costs to £56k.
During 2014/15 the Cathedral placed the employees through the Pension Auto-enrolment process. Following this approximately two thirds of employees now subscribe to a cathedral pension scheme.
The Cathedral has adopted a policy of moving all staff on to a minimum of the Living Wage over two years and the first phase was implemented in pay awards from April 2015.
666 Plans for future periods The new Learning Centre with the Apothecary and Sensory Garden is due to be completed in 2015/16. Our new centre will be disabled friendly and have “state of the art” I.T. and network facilities linking to the Cathedral and exhibitions. A medical room has also been included as part of the new learning complex – it is our ambition to grow our student numbers from 16,135 today to 25,000 school visits by 2018/19.
The enabling works package has now been completed, and the main conservation restoration and repair work has commenced. The most visible aspect of which has been the temporary scaffold roof over the presbytery roof. The lead roof beneath the cover will be replaced, so that work can progress on the fine 16th Century vault below with its picture and foliate bosses.
The temporary exhibition has been installed and has been received well. The temporary exhibition provides the groundwork and test bed for the new exhibitions at three levels in the Cathedral’s stunning South Transept. Visitors will have an exciting encounter with Winchester’s greatest treasures, including the world-famous 12 th Century Romanesque Winchester Bible, which previously has not been readily accessible.
Construction of a lift within the South Transept up into the Triforium Level will be the first lift in any cathedral to travel through a vaulted ceiling.
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 three years.
The Capital works form the starting place of our “Virtual Circle” and when complete enable us to build on and use more of the cathedral to expand our Mission and Ministry. For example, significant work has commenced with the Learning team to enhance our learning programmes with new additions to our learning resources and next year will see a stronger pre and post visit section and makeover to the online educational resources.
The work goes on in developing the contents for our new exhibitions with an innovative approach to storytelling. The volunteers continue to move from strength to strength with emphasis on developing and enhancing the support mechanism driven by our Volunteer Co-ordinator, to help them develop and help deliver our strategic objectives in our Activity Plan – Chapter have committed to start working towards Investors in Volunteering.
The Cultural hub is now beginning to see the first signs of growth. The Apprentice programme is expanding and we look forward to the Community Engagement Officer joining us during the coming year.
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777 AAAuditedAudited Accounts
AUDITED ACCOUNTS 31 March 2015
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 2015 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/auditscopeukprivate
Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the Cathedral's affairs as at 31 March 2015, 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 31.07.15
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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 Fabric, Music and Staff Pension Fund investments of the previous Winchester Cathedral Appeal. Income from the permanent endowment funds is unrestricted.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor and are set out in note 16 to the financial statements. The reserve arising on the revaluation of properties within the Cathedral Close is deemed to be a restricted fund.
Unrestricted funds are funds where no restrictions are placed on the use by the Cathedral as regards either the capital or the income, and include the reserve arising on the revaluation of properties other than in the Cathedral Close.
Income
Dividend income and bank interest are included at the time of receipt at amounts which include recoverable income tax where appropriate. Voluntary income is received by way of general donations, special donations, church collections and Gift Aid donations. Such income is included at the time of receipt at amounts which include recoverable income tax on Gift Aid donations. Other income is included at the time of receipt or, in the case of grants, when the necessary conditions have been met. Legacy income is recognised when it is receivable.
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 2015 2015 2015 2015 2015 2014 £000 £000 £000 £000 £000 £000 Incoming resources 1 Voluntary income 400 - 209 - 609 805 Grants receivable 4 - 4,934 - 4,938 489 Charges and fees arising in the course of charitable activities 100 - - - 100 101 Income from activities generating funds 2,230 - - - 2,230 2,903 Income from property and investments 991 - - - 991 1,001 Other incoming resources ------
Total incoming resources 3,725 - 5,143 - 8,868 5,299 Cost of generating funds 3,5 1,666 - 13 - 1,679 2,329
Net incoming resources available for charitable activities 2,059 - 5,130 - 7,189 2,970
Resources expended on charitable 4 activities Ministry 910 - 275 - 1,185 1,090 Cathedral and precincts upkeep 781 - 72 - 853 977 Education and outreach 183 - 55 - 238 225 Other expenditure on charitable activities 25 - 3,441 - 3,466 386
1,899 - 3,843 - 5,742 2,678
Governance costs 6 147 - - - 147 142
Net incoming resources 13 - 1,287 - 1,300 150
Other recognised gains Non-investment property - - - - - 4,583 Investment property - - 1,178 - 1,178 1,692 Investments 8 6 44 236 294 256
8 6 1,222 236 1,472 6,531 Net movement in funds 21 6 2,509 236 2,772 6,681
Fund balances brought forward 2,556 149 31,242 5,936 39,883 33,202
Fund balances carried forward 2,577 155 33,751 6,172 42,655 39,883
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Consolidated balance sheet
Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2015 205 2015 2015 2015 2014 £000 £000 £000 £000 £000 £000 Fixed assets Investment assets Property 9 80 - 16,428 - 16,508 15,330 Investments 10 772 155 616 6,172 7,715 7,421
852 155 17,044 6,172 24,223 22,751
Non-investment assets Property 11 1,755 - 16,167 - 17,922 16,640 Plant & equipment 12 253 - - - 253 240
2,008 - 16,167 - 18,175 16,880
Total fixed assets 2,860 155 33,211 6,172 42,398 39,631
Current assets Stocks 142 - - - 142 152 Debtors 13 693 - 58 - 751 310 Cash at bank and in hand 690 - 914 - 1,604 562
1,525 - 972 - 2,497 1,024
Current liabilities 14 (1,808) - (432) - (2,240) (772)
Net current assets / (liabilities) (283) - 540 - 257 252
Total assets less total liabilities 2,577 155 33,751 6,172 42,655 39,883
Funds General fund 18 1,785 - - - 1,785 1,764 Property revaluation reserve 16,18 792 - 32,154 - 32,946 30,476 Music fund 15 - - - 2,875 2,875 2,763 Other funds 15,16,17 - 155 1,597 3,297 5,049 4,880
2,577 155 33,751 6,172 42,655 39,883
The financial statements were approved by the Chapter at their meeting on 31 July 2015 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 2015 2015 2015 2015 2015 2014 £000 £000 £000 £000 £000 £000
Fixed assets Investment assets Property 9 80 - 16,428 - 16,508 15,330 Investments 10 782 155 616 6,172 7,725 7,431
862 155 17,044 6,172 24,233 22,761
Non-investment assets Property 11 385 - 16,477 - 16,862 15,580 Plant & equipment 12 38 - - - 38 72
423 - 16,477 - 16,900 15,652
Total fixed assets 1,285 155 33,521 6,172 41,133 38,413
Current assets Stocks 30 - - - 30 21 Debtors 13 1,030 - 58 - 1,088 635 Cash at bank and in hand 671 - 914 - 1,585 528
1,731 - 972 - 2,703 1,184
Current liabilities 14 (1,723) - (432) - (2,155) (687)
Net current assets / (liabilities) 8 - 540 - 548 497
Total assets less current liabilities 1,293 155 34,061 6,172 41,681 38,910
Funds General fund 18 976 - - - 976 955 Property revaluation reserve 16,18 317 - 32,464 - 32,781 30,311 Music fund 15 - - - 2,875 2,875 2,763 Other funds 15,16,17 - 155 1,597 3,297 5,049 4,881
1,293 155 34,061 6,172 41,681 38,910
The financial statements were approved by the Chapter at their meeting on 31 July 2015 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 2015 2015 2014 2014 £000 £000 £000 £000
Net cash inflow / (outflow) from operating activities 19 1,537 (286)
Returns on investments Rents received net of costs 551 591 Interest and dividends received 354 332
905 923 Capital expenditure and financial investment Sale proceeds of investments less amounts reinvested 4 15 Purchases of furniture and equipment (1,401) (178)
(1,397) (163)
Cash inflow before management of liquid resources and financing 1,045 474
Management of liquid resources
Net decrease in liquid resources 20 (3) -
Increase in cash 20 1,042 474
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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 2015 2015 2015 2015 2015 2014 £000 £000 £000 £000 £000 £000 Voluntary income Congregational collections and giving 72 - 55 - 127 123 Donations 212 - 25 - 237 234 Income from appeals and fundraising 21 - 53 - 74 128 Tax recoverable under Gift Aid 95 - - - 95 97 Income from Friends and local trusts - - 76 - 76 52 Legacies - - - - - 171
400 - 209 - 609 805
Grants receivable Church Commissioners - - 140 - 140 147 Heritage Lottery Fund - - 4,733 - 4,733 291 Other revenue and capital grants 4 - 61 - 65 51
4 - 4,934 - 4,938 489
Charges and fees arising in the course of charitable activities Facility and other fees 100 - - - 100 101
Income from activities generating funds Charges to visitors 603 - - - 603 600 Gross income of shop, refectory and other trading activities 1,627 - - - 1,627 2,303 Other external charges ------2,230 - - - 2,230 2,903 Income from property and investments Income from investment property 607 - - - 607 635 Income from other investments 384 - - - 384 366
991 - - - 991 1,001
Other income Other items ------
Total incoming resources 3,725 - 5,143 - 8,868 5,299
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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.
2015 2014 £000 £000
Turnover 1,627 2,303
Cost of sales (690) (978)
Gross profit 937 1,325
Other operating charges (563) (922) Other operating income - -
Operating profit 374 403
Interest receivable - -
Profit on ordinary activities before donation 374 403
Donation to the Chapter of Winchester (374) (403) - - Profit for the financial year
The Net Assets of Winchester Cathedral Enterprises Limited at 31 March 2015 840 840
b) Winchester Cathedral Box Office Limited
Winchester Cathedral Box Office Limited is also a wholly owned subsidiary which is incorporated in the UK, Registered Company No. 5945638. Until the 31 March 2010 the company operated the Cathedral box office facility for both internal and external events. Since 1 April 2010 the box office function has traded through the legal entity of Winchester Cathedral Enterprises Limited. The company has therefore been dormant since that time. At 31 March 2015 it had net assets of £1 (2013/14 £1).
3 3 Cost of generating funds Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2015 2015 2015 2015 2015 2014 £000 £000 £000 £000 £000 £000 Costs of facilities for visitors 83 - - - 83 106 Costs of services directly recoverable 5 - 13 - 18 20 Gross costs of shop, refectory and other trading activities 1,253 - - - 1,253 1,893 General marketing costs 167 - - - 167 162 Costs of appeals and fund raising 72 - - - 72 70 Investment property costs 56 - - - 56 44 Investment managers fees 30 - - - 30 34
1,666 - 13 - 1,679 2,329
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4 4 Resources expended on charitable activities Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2015 2015 2015 2015 2015 2014 Ministry £000 £000 £000 £000 £000 £000 Clergy stipends and working expenses 14 - 116 - 130 125 Clergy housing costs 41 - - - 41 45 Clergy support costs 71 - - - 71 61 Services and music 784 - 159 - 943 859
910 - 275 - 1,185 1,090
Cathedral and precincts upkeep Major repairs and restoration 214 - 27 - 241 371 Maintenance and interior upkeep 239 - 41 - 280 277 Cathedral insurance 100 - - - 100 96 Precincts, security and gardens upkeep 198 - 4 - 202 206 Support costs 30 - - - 30 27
781 - 72 - 853 977
Education and outreach Educational activities 90 - - - 90 72 Archives and library 89 - - - 89 81 Charitable and other giving 4 - 55 - 59 72
183 - 55 - 238 225 Other expenditure on charitable activities Heritage Lottery Fund Project - - 3,441 - 3,441 352 Irrecoverable VAT 25 - - - 25 34
25 - 3,441 - 3,466 386
Total resources expended on charitable activities 1,899 - 3,843 - 5,742 2,678
5 5 Support costs Direct Support Total Direct Support Total costs costs costs costs 2015 2015 2015 2014 2014 2014 £000 £000 £000 £000 £000 £000
Costs of generating funds 1,572 107 1,679 2,222 107 2,329 Ministry 920 265 1,185 862 228 1,090 Cathedral and precincts upkeep 636 217 853 801 176 977 Education and outreach 185 53 238 200 25 225 Other expenditure on mission 3,466 - 3,466 386 - 386 Governance costs 147 - 147 142 - 142
6,926 642 7,568 4,613 536 5,149
6 Governance costs 2015 2014 £000 £000 Auditors' remuneration: Audit services 18 17 Accountancy and other services - 8 Taxation advice 1 1 Governance and strategic planning 128 116
147 142
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7 7 Employees Staff costs during the year were as follows: 2015 2014 £000 £000 Salaries and stipends 1,575 1,810 Social security costs 116 136 Other pension costs 174 147
1,865 2,093
The average number of employees on a full time equivalent basis during the year was as follows:
2015 2014 Cathedral staff 16 16 Administration 15 15 Education 3 2 Maintenance 12 11 Shop and Refectory 11 24 Visitor services 5 5
62 73
One member of the Chapter, the Receiver General, received remuneration during the year of £85,000 (2014: £81,000). 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 £6,611 (2014: £6,696) 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:
2015 2014 £000 £000
Audit services 18 17 Accountancy and other services - 8 Taxation advice 1 1
19 26
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 2014 80 - 15,250 - 15,330 Change in use - - - - - Additions - - - - - Change in market value - - 1,178 - 1,178
At 31 March 2015 80 - 16,428 - 16,508
The properties were revalued as at 31 March 2014 by Messrs Carter Jonas LLP, a firm regulated by the Royal Institute of Chartered Surveyors, on the basis of market value. On 31 March 2015 Chapter carried out an interim valuation of the properties.
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10 10 Investments
Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000
Investments at market value 1 April 2014 201 149 1,132 5,923 7,405 Additions 18 14 103 538 673 Proceeds from disposals (19) (14) (104) (540) (677) Transfers 563 - (563) - - Net increase/(decrease) on disposals and revaluations 8 6 45 235 294
Investments at market value 31 March 2015 771 155 613 6,156 7,695
Short term deposits - - - - - Uninvested Cash 1 - 3 16 20
Market Value Carried Forward (Consolidated) 772 155 616 6,172 7,715
Investments in Group Undertaking at Net Asset Value 10 - - - 10
Investments (Chapter) 782 155 616 6,172 7,725
2015 2014 £000 £000
Equity funds 5,037 5,126 Fixed interest funds 864 875 Portfolio funds 377 116 Property funds 563 524 Other managed funds 854 764 7,695 7,405
Other liquid resources - - Cash fund 20 16 Shares in subsidiary companies 10 10
7,725 7,431
The Chapter owns the whole of the issued share capital of Winchester Cathedral Enterprises Limited.
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11 11 Non-investment property Restricted Assets in Consolidated Unrestricted Designated Restricted course of Endowment Total funds funds funds construction funds funds Valuation £000 £000 £000 £000 £000 £000 At 1 April 2014 1,755 - 14,885 - - 16,640 Additions - - 2 1,292 - 1,294 Depreciation - - (12) - - (12) Change in market value ------
At 31 March 2015 1,755 - 14,875 1,292 - 17,922
Restricted Assets in Chapter Unrestricted Designated Restricted course of Endowment Total funds funds funds construction funds funds Valuation £000 £000 £000 £000 £000 £000 At 1 April 2014 385 - 15,195 - - 15,580 Additions - - 2 1,292 - 1,294 Depreciation - - (12) - - (12) Change in market value ------
At 31 March 2015 385 - 15,185 1,292 - 16,862
Non-investment properties are held and used as follows: Long Freehold leasehold Total At 1 April 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
Long Freehold leasehold Total At 31 March 2015 £000 £000 £000 For Cathedral administration and workshops 1,350 - 1,350 For Cathedral clergy and staff housing 9,690 220 9,910 For the Deanery 3,500 - 3,500 For Assets in course of construction 1,292 - 1,292 For the education centre 500 - 500 Leased to Winchester Cathedral Enterprises Limited 310 - 310
Chapter total 16,642 220 16,862 Eliminated on consolidation (310) - (310) For Cathedral trading activities 1,370 - 1,370
Consolidated total 17,702 220 17,922
The properties were revalued as at 31 March 2014 by Messrs Carter Jonas LLP, a firm regulated by the Royal Institute of Chartered Surveyors, on the basis of existing use. During the year ended 31 March 2015 the New Learning Centre was under construction, and is shown above as Assets in course of construction.
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12 12 Cathedral plant and equipment
Consolidated Chapter £000 £000 Cost At 1 April 2014 572 165 Additions 107 1 Disposals - (3)
At 31 March 2015 679 163
Depreciation At 1 April 2014 332 93 Charge for the year 94 32
At 31 March 2015 426 125
Net book value
.At 31 March 2015 253 38
At 31 March 2014 240 72
13 13 Debtors Consolidated Chapter 2015 2014 2015 2014 £000 £000 £000 £000
Winchester Cathedral Enterprises Limited - - 407 398 Social security and other taxes 155 - 173 - Other debtors 530 220 481 202 Prepayments 66 90 27 35
751 310 1,088 635
14 14 Current liabilities Consolidated Chapter 2015 2014 2015 2014 £000 £000 £000 £000
Trade creditors 484 160 466 101 Social security and other taxes 37 10 35 10 Other creditors 68 63 68 46 Accruals 1,651 539 1,586 530
2,240 772 2,155 687
15 15 Endowment funds
Consolidated and Chapter At 1 April Net Investment At 31 March 2014 Incoming/ gains/ 2015 (outgoing) (losses) in resources the year £000 £000 £000 £000 Appeal fund: Fabric 2,086 - 89 2,175 Music 71 - - 71 Staff 25 - - 25
2,182 - 89 2,271 Music 2,763 - 112 2,875 Permanent endowment 872 - 35 907 John and Kathleen Kyle Memorial Fund for Lay Clerks 80 - - 80 Roger Bruce Ellery 39 - - 39
5,936 - 236 6,172 Annual Report Statutory Supplement and Audited Accounts - Page 36
16 16 Restricted funds
Consolidated At 1 April Net Investment At 31 March 2014 Incoming/ gains/ 2015 (outgoing) (losses) in resources the year £000 £000 £000 £000
AEV Day deceased 1,143 - 45 1,188 Fabric 120 (4) - 116 Fabric and worship 45 - - 45 Deanery furnishings 18 - - 18 Cathedral charitable 37 (1) - 36 Deanery Garden 6 1 - 7 Library 28 - - 28 Thomas-Davies 13 - - 13 Venerable Altar/ Swags 5 - - 5 Woodhouse Trust 5 - - 5 Girls’ choir 8 (1) - 7 Music - - - - Organ 116 - - 116 Others under £5,000 14 (1) - 13
1,558 (6) 45 1,597 Close property revaluation reserve 29,684 2,470 - 32,154
31,242 2,464 45 33,751
AEV Day Deceased - Established by legacy. This fund is restricted to Fabric. The underlying value of the legacy should be preserved and the income used to offset costs of Cathedral maintenance and conservation Fabric - Funds restricted to the working repair and conservation of the Fabric of the Cathedral Fabric and worship - Funds restricted to the internal fabric relating worship and liturgy in the Cathedral Deanery furnishings - Funds restricted to provide furnishings and fittings for the Deanery Cathedral charitable - Income provided by donation to the Cathedral to support other charitable causes Deanery garden - Funds restricted to the repair and maintenance of the Deanery garden Library - Funds for expenditure on the Library. Income augmented from time to time by restricted donations. Thomas-Davies - A Fund whose income is to be used at the discretion of the Dean and the Receiver General to meet the special needs and welfare of the Virgers and Lay Clerks Venerable Altar / Swags - Income received from donations restricted to the repair and maintenance of the Venerable Altar, Icons and Swags Woodhouse Trust - Funds restricted to sound and light in the Cathedral Girls' Choir - Funds to support the Girls' choir Organ - Funds to repair and maintain the Organ Others under £5,000 - Monies given for specific activities or projects that are not substantial in balance, income or expenditure
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16 16 Restricted funds (cont'd)
Chapter At 1 April Net Investment At 31 March 2014 Incoming/ gains/ 2015 (outgoing) (losses) in resources the year £000 £000 £000 £000
AEV Day deceased 1,143 - 45 1,188 Fabric 120 (4) - 116 Fabric and worship 45 - - 45 Deanery furnishings 18 - - 18 Cathedral charitable 37 (1) - 36 Deanery garden 6 1 - 7 Library 28 - - 28 Thomas-Davies 13 - - 13 Venerable Altar/ Swags 5 - - 5 Woodhouse Trust 5 - - 5 Girls’ choir 8 (1) - 7 Music - - - - Organ 116 - - 116 Others under £5,000 15 (2) - 13
1,559 (7) 45 1,597 Close property revaluation reserve 29,994 2,470 - 32,464
31,553 2,463 45 34,061
The details of the restricted funds are shown above
17 17 Designated funds Consolidated and Chapter At 1 April Net Investment At 31 March 2014 Incoming/ gains/ 2015 (outgoing) (losses) in £000 £000 £000 £000
Kings & Scribes Project Fund 40 - 1 41 Sound & Light Fund 66 - 3 69 Organ Fund & Music Library 43 - 2 45
149 - 6 155
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
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18 18 Unrestricted funds Consolidated At 1 April Net Investment At 31 March 2014 Incoming/ gains/ 2015 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 1,764 13 8 1,785 Property revaluation reserve 792 - - 792
2,556 13 8 2,577
Chapter At 1 April Net Investment At 31 March 2014 Incoming/ gains/ 2015 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 955 13 8 976 Property revaluation reserve 317 - - 317
1,272 13 8 1,293
19 19 Reconciliation of net incoming resources to net cash outflow from operating activities 2015 2014 £000 £000 Net incoming resources before revaluations and disposal of investments 1,300 150 Less income from property and investments (991) (1,001) Add property management costs and investment manager costs. 86 78 Depreciation charges 106 89 Decrease/(increase) in stocks 10 3 (Increase)/decrease in debtors (441) (17) Increase in creditors 1,467 413
Net cash inflow / (outflow) from operating activities 1,537 (286)
20 20 Reconciliation of net cash flow to movement in net funds 2015 2014 £000 £000 Increase/(decrease) in cash 1,042 474 Increase /(decrease) in liquid resources (3) -
Increase/(decrease) in net funds 1,039 474 Net funds at 1 April 2014 572 98
Net funds at 31 March 2015 1,611 572
2 1 21 Analysis of changes in net funds At 1 April Cash flow At 31 March 2014 2015 £000 £000 £000 Cash at bank and in hand/(Overdraft) 560 1,042 1,602 Cash balances included in investments 12 (3) 9
572 1,039 1,611
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22 22 Capital commitments
There were no capital commitments at 31 March 2015 or 31 March 2014.
23 23 Contingent assets/liabilities
The Chapter is aware of its obligations in relation to Chancel liabilities. Last year the Chapter was notified of one such liability. Whilst the quantum of this cannot be reliably measured, a provision of £40,000 has been made in the financial statements. There were no contingent assets or liabilities at 31 March 2015 or 31 March 2014.
24 24 Pension schemes
Chapter participates in the Church of England Pension Builder Scheme (PBS), within the Church Workers’ Pension Scheme, which is administered by the Church of England Pensions Board. The PBS is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.
Pension Builder Classic provides a pension for members payable from retirement, accumulated from contributions paid and converted into a pension benefit during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending upon the investment returns and other factors.
Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members' Normal Pension Age.
At 31 March 2015, Winchester Cathedral had no active members, and 6 deferred members in the Pension Builder Classic section. Winchester TheCathedral assets hadof the 49 PBSactive are members held separately and no fromdeferred thos meme of bersthe employer. in the Pension As at Builder the formal 2014 valuationsection. as at December 2010, the PBS was in surplus on an ongoing funding basis. A formal valuation of the PBS is being carried out as at December 2013 but, as at the end of March 2015, the final results have yet to be announced. Pension Builder 2014 commenced in February 2014, so will be included in the next valuation due as at December 2016. Winchester Cathedral is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the PBS. For schemes like this, paragraph 9(b) of financial Reporting Standard 17 (FRS 17) requiring Winchester Cathedral to account for pension costs on the basis of contributions actually payable to the Scheme in the year. Winchester Cathedral contributes 8% of basic salary and the employees are required to contribute a minimum contribution of 3%. Winchester Cathedral contributions for the year totalled £71,620 (2014 £38,095), and there were no contributions outstanding at the year end.
In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of England Defined Benefits Scheme (DBS), also part of the Church Workers’ Pension Scheme, both of which schemes are now closed to new members. At 31 March 2015 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 2013 and the Chapter's contribution rate in respect of future accruing benefits was revised to 28.5%. Additional contributions in respect of the shortfall in the Employer sub-pool of £73,542 pa are payable until 31 January 2017 with effect from 1 April 2012.
25 25 Connected entities Individual members of the Chapter are involved with, and serve on all or some of the boards of The Winchester Cathedral Trust, The Carl Klein Trust, and the Friends of Winchester Cathedral. However, the Chapter does not have day to day control over any of these charities.
The Friends of Winchester Cathedral This association exists to assist the Chapter in maintaining, the fabric and monuments and the fittings and furnishings of the Cathedral and its associated ground-works within the precincts, excluding property used for residential or administrative purposes.
The Winchester Cathedral Trust The Charity’s objects are to raise funds and receive donations to apply to any charitable purpose connected with Winchester Cathedral. includes the general upkeep of the Cathedral and the improvement and repair of all other buildings in the Cathedral Close, and the receipt distribution of funds raised to meet the costs of choristers.
The Carl Klein Trust The Charity’s objects are to provide financial assistance to lay clerks and prospective lay clerks of Winchester Cathedral who are in need or are suffering hardship
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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-15 31-Mar-15 31-Mar-15 £000 £000 £000 Gross Income 242 897 -
Net incoming/(outgoing) resources for the year (45) (1,166) -
Net Movement in Funds (25) (1,166) -
Amounts paid or payable to the Cathedral 206 1,983 -
Gross Assets 839 2,218 466
Net Assets 459 2,214 465
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 £1,978k (2014: £505k) from The Winchester Cathedral Trust. During the year the Chapter received £355k (2014: £57k) from The Friends of Winchester Cathedral in grants. During the year the Chapter received £135k (2014: £135k) from The Pilgrims' School (Limited by Guarantee) in respect of rent. During the year the Chapter paid £226k (2014: £223k) in respect of Choristers' school fees to The Pilgrims' School (Limited by Guarantee). During the year the Chapter paid £3k (2014: £3k) to Sophie Hacker, the wife of a Chapter member Canon Roland Riem, in respect of expenditure on arts and exhibitions
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