Mancho8tfrr Calh•dral Developmont Tru•1 Annual Report and Financial Statements Year Ended 31 December 2020 Manchester Cathedral Development Trust Annual report and flnancial st•tom•nts for the yoar ended 31 DeGombor 2020 Contont• Pago Legal and administrative information Tru818es' report 24 Statement of the responsibllltl&s of the Trustee8 Independènt Audilors, reFK>rt to the Trustees Statement of financlal acttvitie8 10 Balance sheet 11 Statement of cash flows 12 Notes to the financial 8taltmanls 13-17 Manchester Cathedral Development Trust Annual report and fin4n¢lal ltaiements for the yoaT •ndod 31 December 2020 L•g414nd admlnlstratlve Informatlon Contact Addross Man¢hesler Cathedral Development Trust Cathedral Street Manchester M3 1SX Telephone 0161433-2220 Legal 81atu• The chadty was formed os a Trust under 8 Trust Deed dated 2 December 1991. It 18 a Registered Charity 110082951. Truste0• Lay Trustee8'. Mr W. Smith JP, Lord Lieutenant for Greater Manchester- Chair Mr P. Deakin Mr J.P. Wainwright MA FRICS Capllular Tru$lees'. The D8an of Manchester The Very Reverend R.M. Govender The Revèrend Canon D.A. Holgat8 The Revèrend Canon M.Z. Wall Audltor• BOO LLP Two Snowhill Birmingham B4 6GA 8ankor• Royal Bank of Scotland plc St Ann Streel Manchester M60 2SS Manchester Cathedral Development Trust Trusto08' report for the year ondod 31 Decemb•r 2020 The Trustees presenl their annual report and the audited financlal statements for the year ended 31 December 2020. structuffr, gov•rn•n¢e and management The charity was formed as a Trust under a Trust Deed dated 2 December 1991. It is a Registered Charity {10082951. Trustees who served durlng the year were as Ilsled on page 1. There is provision for five Capitular Trustees being 8x-offi¢io trustees consisting of the Dean and four residentiary Canons of Manchester Cathedral together with four Lay Trustees. The Lay Trustees are appointed for a temi of three years but may be reappointed. Trustees are recruited by a variety of methods including recommendations from existing Tiuslees. Each individual who has been recommended is then Intervlewed by the Chairman and other Trustees as appropriate and then elected by the Trustees. New Trustees are provided with an induction pack and are given regular presentations on the business of the chanty al the Trustee meeting8. The Trustees elect a lay chairman from their rsumber, the Vice chair being the Dean of Manchester. Trustee meetings should be h8ld ￿l¢e a year and the quorum for a meeting is five trustees consisting of not less than Ihree Capitular Trustees. A Flnance Committee whlch has b8en established wrth Ils main terms of referènce being to.. Review and monitor the aGcounting proces8es', Oversee preparation of the financial accounts. The Trustees are respon81ble for setting th8 8tr8tegic direction ol th8 charity. Rl8k M*nag•mont The trustees have performed a review of the risks that we balieve could seriously affect the chanty, performance, future prospects, reputation or ils ablllty lo deliver against its prionli85. This development of our risk process has resulted in the inclusion of liquidity as a principal risk. The approval of grants lo the Cathedral, our major cash outhow, is closely mnitored with mgular forecasts of cash requlremenls and regular management acGounts that are reviewed by the Irusl88s. The Trustees have revisited the going concern assessment In September 2021 following on from the outbrèak of Covid-19 in early 2020. Although there has been some impact thi8 has b8en quite minimal and has no material Impact on the financial viability of the charity in the foreseeable future. ObJ•ctIV￿ and acllvltl The Trust Is a registered charSty whose objects are'.- The improvement, enhancem&nt and major refurbishment of Manche8ter Cathedral, Its fabric and grounds and any other land owned by or leased to the Trust, and the provision of new facilitles and equipment of general benefit to Manchester Cathedral and the community served by Manchester Cathedral. The carrying out andlor provision of financial assistance for the carrylng out of new works or new additions to Manchester Cathedral including (but without prejudicing the generality of the foregoing} substantial works of decoration and restoration and renovation work which shall, in the reasonable opinion of the Trustees land after consultalion with the Cathedral Architect for the time b&ingl be considered lo be works which do not constitute part of the nomial and routsne costs of running Manchester Cathedral. The assisting of the Dean and Canons in such other purpose$ and objects which the Dean and Canons wish to carry out and which the trustees consider to be encompassed within Ihe foregoing objects. Thè trustees have had due regard to the Charity commission guidance on public benefit. Manchester Cathedral Development Trust Trustees, r•port for th• y•ar ended 31 December 2020 Obj•ctiVo8 and actlvltles Icontlnued Governing Do¢umentatlon Restrlctlon In raising income for the Charty the Trustees shall obseNe the following restriction.. They shall not undertake any permanent trading activities in raising funds for the charitsble objects as d8tailed above. Aehiov•m•nt• and p&rfornMnc• Fundral8lng Progre The Truste&s are currently working with the dlreclor of fundraising lo develop the next phase of th8 Development Plan. During 2018 & 2019 a major exercise was undertaken examining use of space in the Cathedral inGluding number of workshops being held with various stakeholders. This project w8$ fvnded by a Re5ilienl Heritage Grant from the National Heritage Lottery Fund and the results will lead to oulline concepts for improvèments lo the Cathedral fabric. Following this there will be a clear direction for fundraising. Phase 2 of the lighting project is also being developed together wilh the refurblshm8nl of the Cathedral Library. Externally, there are a number of memorials being planned a8 part of the development of the public realm, with particular reference to Victoria Street works currently baing carried out by Manchester City Council. FlnancSal R•vl•w Total income for the year amounted to £158,746 compared to £31.662 in 2019. No grants w8re made lo the Cathedral in the year. Net income for the year amounted lo £150,222 {2019 Net Income £24,076). At 31 December 2020 restricted funds amounted to £76,893 and unrestricted funds amounted to £156,158. The Cathedral requests grants from the charity as the work progresses on the various projects. CUr￿ntlY, the next phase of the development project Is being developed logelhor with a fundraising strategy. RM•tV08 Pollcy The Charity has attra¢ted funding for 8peclfic purposes over the years including the new organ, new lighting and new liturgical furniture, The majority of these projects have now been complete(J and the grants have been pald to the Cathedral, A number of new sources of donations are being established particularly for the final phas8 01 the new I￿hting, thus reducing the overall financial risk to the Chanty. There is no requirement lo hold free reserves. At 31 December 2020 total reserves amounted to £233,051 12019 £82,829) of wh￿h £76,89312019 £72,893) are restricted. Fundral•lng Section 162a of the Charities Act 2011 requires Charflies lo make a statement regarding fvndraising activities. Although we do not undertake widespread fundTai5ing from the general public, the legislation defines fund raising s 'solicitsng or otherwise procuring money or other property for chanlable purposes. Such amounts receivable are presented in our accounts as 'voluntary income" and includes legacies and grants. In ￿latiOn to Ihe above we confirm that all solicitations a￿ managed internally, wilhoul invofvemenl of ommercial participators or professional fund-raisers, or third parties. The day to day management of all income generation 15 delegated to the exe¢utsve team, who are accountable lo the trustees. The charity is not bound by any undertaking to be bound by any regulatory scheme. Manchester Cathedral Development Trust Tfuslg08' roport for Iho yoar ended 31 Do¢embor 2020 Fundr•ioing Icontlnuod) We have received no complaints in relats'on to fundraislng activities. Our teThs of employment require staff to have reasonably al all limes,. as we do not approach individuals for funds we do not have to particularise this to fundraising activities nor do we consider it necessary to design specific procédures lo monitor such activities. Audlt infonnatlon All of the current trusteès have iaken all the steps that they ought to have taken to make themselves aware of any information needed by the charity's auditors for the purposes of their audit and to establish that the auditors are aware of that informallon. The trustees are not aware of any relevant audll informatk)n of whlch Ihe auditors are unaware. Approved and signed on behalf of tha Trustaos D.A. Holgate Manchester Cathedral Development Trust statsment of responsibilitios of the Tru8t•es for the yoar ended 31 Docember 2020 Stalgmont of responsibilitles of the Trustees Th8 Trustees are responsible for preparing the Annual report Trustees, report and the financial stslements in accordance with applKable law and regulations. Chanty law requi￿5 the Trustees lo prepare financial statements for each financial year in a¢cordance with Unrted ￿'ngdoM Generally Accepted Accounting Practice {United Kingdom Accounting Standard5 and applicable lawl. Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a IrLte and fair view of the state of affairs of the charity and of the incoming resources and application of resources. including the incom8 and expenditure, of the chanly ft)T that per1￿J. In preparing these financial statements, the Trustees are requirèd to.. select suitable accountin9 polic￿ and then apply them consistenuy., make judgements and accountSng estimates that ara reasonable and prud8nl', stale whether applicable UK Accounting Standards have been ft)Ilowed, subject to any material departures disclosed and explained in the financial slatement5', prepare the financial statements on the going concern ba8is unless It is inapproprlate to presume that the charity will continue in business. The Trustees are ￿sponSible lor keeplng adequate accountlng records that are sufficient to show and explain the charity's transactions and disclose with reasonable a¢curacy al any lime the financial position of the Qharily and enable them lo ensure that th& financial statements comply with the Charities Act 2011. They ar@ also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularrties. Manchester Cathedral Development Trust Roport of Iho indopondonl audltord Year ended 31 Do¢•mber 2020 INDEPENDENT AUDITOR'S REPORT TO TRUSTEES OF MANCHESTER CATHEDRAL DEVELOPMENT TRUST Oplnlon on Ihe flnanclal 8tatements In our opinion, the financial statem8nts'. give a true and fair view of the stale of the Charity's affairs as at 3151 December 2020 and of its ineoming resources and application of resources for the year th8n ended., have been properly prepared In accordance with United Kingdom Generally Acc8pled Accounting Practice,. and have been prepared In accordance with the requirements ol the charit￿$ Act 2011. We have audited the financlal slalements of Manchester Cathedral Development Trust I'the Charity") for the year ended 3111 December 2020 which ¢omprise the statement of financial aclivitles, the balance sheet, the cash flow statement and notes to the financial statements, including a summary of signiftcanl accounting pollcies. Thè financial reporting fram&work that has bèen applied in their preparation is applicable law and United Kingdom Accounting Standards, includlng Financial Rèporting Standard 102 The Financial Reporting Stand8rd applicable in th8 UK and R8publK of Ireland (United Klngdom Generally Accepted Accounting Practice). Ba81• for oplnlon We conducted our audit in accordance with Internatlonal Standards on Audlling IUKI IISA8 IUK)18nd applicable law. Our responsibilities under those standards are further described in Ihe Auditor's responsibilrties for the audit of the financial statement8 section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide 8 basis for our oplnlon. Indopond•nce We remain independent of the Charity in accordance with the ethical requirements relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we hav& fulfilled our other ethical sponslblllties in accordance with these requlremènts. Con¢lu81on8 related to golng concfrm In auditing the financial statements, we h8ve concluded that the Trustees. use of the golng concern basis of accounling in the preparation of the financial statements 15 appropriate. Based on the work we hav6 performed. we have not identified any material uncertaintie5 relatlng to events or conditions that. individually or collecllvely, may cast significant doubt on the Charity's ability lo continue as going concem for a period of at least ￿1ve months from when the financial ststemenls are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Manchester Cathedral Development Trust Report of Ihfr indfrpondent auditors Year endod 31 December 2020 INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF MANCHESTER CATHEDRAL DEVELOPMENT TRUST (CONTINUED) other Informatlon The Trustees a￿ responsible for th8 other information. The oth8r infomation comprises the information included in the Tru5tee$ Report, other than the fin8nclal statements and our auditor's report thereon. The other informats.on comprises.. tha Trustees Report. Our opIn￿n on the financial statements does not cover the olhef information and, èxcept lo the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ih8reon. Our responsibility is lo read the other informallon and, in doing so, consider whether the oth8r information is m8terialty inconsistent with the financial statements or our knowledge obtsined in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mi88talements, we are required to delermlne whether there is a material mlsstalement in the financial statements or a material misstslement of th8 other information. If, based on the work we have perfomed. we conclude that there is a material misstatement of this other informatlon, we are required lo report that fact. We have nolhSng to report in th18 regard. Matt•rn on whlch wo •r• roqulrod lo report by exeeptlon We have nothing to report In rèspe￿ of the following matters In relation to which the Charrties Act 2011 requi￿ us lo report lo you if, in our oplnlon., the informatlon ¢ontaln8d In the flnancial statements Is inconsistent In any material respect with the Trustees, Annual Report., or adequate accounting records have not been kept., or the financlal Slatemenls are not in agreemenl with the accounting records and returns,. or we have not received all the infomiallon and explanations we require for our audit. Rfr•pon8lbllltle• ol Tru•t• As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they gwe a true and fair view, and for such internal control as the Trustees determlne$ is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsibb for assesslng the Charlty's ability lo continue as a going conc8m, disclosing, as applicable, matters rolaled to going concern and using the going concem basis of accounting unless the Tru8tees either intend lo IKiuidate the Charity or to ceas8 operations, or have no realistic allemative bul to do so. Manchester Cathedral Development Trust Ro1)ort of tho Independent auditors Yoar ended 31 December 2020 INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF MANCHESTER CATHEDRAL DEVELOPMENT TRUST ICONTINUEDI Audltor's re8ponsibiliti88 for th• audlt of the finanelil 8t•tom•nts We have been appolnled as auditor under sectson 144 of the Charities Act 2011 and report In accordance with the Acllsl and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a hlgh level of assurance, bul Is not a guarantee that an audit conducted in accordance with ISAS {UKI will a￿ayS detect a material misslatemenl when It exists, Mi$slatem8nls can arise from fraud or error and are ccnsidered material if, individually or in the aggregate, they coukl reasonably be expected to influence the economic deci51ons of users taken on the basls of these financial $latements. Extent to whkh the audit was capable of detecting irregulariti&s, including fraud Irregularitle$, including fraud, are instances of non-compliance wllh law5 and regulations. We design procedures in line with our responsibilities, outlined above. lo delecl material mlsslatemenls in respect of irregularities, in¢luding fraud. The extent lo which our procedures are capable of delecting IrregularilK88, Sncluding fraud Is delailed below.. We made enquiries of management. This included the following.. how thay have Idenlified. evalu81ed and complied with kgws and regulatlons and whether they wer8 aware of any instances of non-compliance., their process for detecling and respondin9 to the rlsks of fraud and whether they have knowledge of any actual, Suspected or alleged fraud., and which internal controls have been established lo mlligale risks related to fraud or non-compliance with laws and regulations. We obtained an understsnding of the legal and regulatory frameworks that are applicable to the Charfty. These include, but are not limited to the Charitles SORP and UK GAAP. In addition. the Charity is subject to many other laws and regulations where the consequences of non