Charlty Numb•r 1008295 Mancho•tor Cathodfal Devolopmonl Tru•t Annual Report and Financial Statemen18 Year Ended 31 December2021
Manchester Cathedral Development Trust Annual report and financlal statomonts for the year end•d 31 DeCemr 2021 Contents Pagg Legal and admlnistratlve informatlon Trustees, report 24 Statement of the respon5ibililles of Ihe Trusteès Independent Examinerfs report to the Trustees statement of flnancial aclivities Balance shèet statement of ca8h flows Notes to the flnanclal statements 10-15
Manchester Cathedral Development Trust Annual r•port and fin•n¢i•l $tstements for the year end•d 31 Do¢•mber 2021 Logal and admlnl•tratlvo Informatlon Contact Addres8 Manchester Cathedral Oevelopmenl Trust Victoria Street Manchester M3 1SX Tolephone 0161-833-2220 L8gal Statu8 The charlty was formed as a Trust under a Trust Deed dated 2 December 1991. It is a Regisl8red Chanty 110082951. Tru•to08 Lay Trustees.. Mr W. Smith JP, Lord Lieutenant for Greater Manchesl8r- Chair- retired 31 May 2022 Mr R. E. Hough C8E DL LLB- Chalr- appointed 7 December 2022 Mr D.R. Allinson - appointed 7 December 2022 Mr P. Deakin Mrs M,E.M¢Clintock M8E, BA MrJ.P. Wainwright MA FRICS- retired 6 September 2022 Capilular Trustees.. The Dean of Manchester The Very Reverend R,M. Govender The Reverend Canon J.N. Ashworth - appointed 13 February 2023 The Reverend Canon D,A. Holgate- retired 31 May 2022 The Reverend Canon M.Z. Wall Independ•nt Examlnor Heather Wheelhouse ACA 8DO LLP Brg8Water House Countersllp Bristol BS168X Bankern Royal Bank of S¢otland pl¢ St Ann Street Manchester M60 2SS
Manchester Cathedral Development Trust Trusteo8' roport for the year ondod 31 Decembgr 2021 The Trustees present their annual report and the un-audited financial statements for the year ended 31 December 2021. Structiirei governance and management The charity was fomied as a Trust under 8 Trust Deed dated 2 December 1991. It is a Registered Charty 110082951. Trustees who served during the year were a5 listed on page 1. There is provision for five Capilular Trustees being ex-officio trustees consisting of the Dean and four residenliary Canons of Manchester Cathedral together with four Lay Trustees. The Lay Trustees are appointed for a term of three years but may be r8appoinled. Trustees are recruited by a variety of methods including recommendations from existing Trustees. Each individual who has been recommended 18 then interviewed 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 charity at the Trustee meetings. The Trustees elect a lay chairman from their number, the Vice chair being the Dean of Manchester, Trustee meelings should be held 1c8 a year and the quorum for a m8eling is five Iru81ees consisting ol not less than three Capitular Trustee8. A Finance Committee which has been established wllh its main terms of refenCe being to.. Review and monitor the accountlng processes., Oversee preparation of the financial accounts. The Trustees are responslble for 8ettlng the strategic directlon of the charity. Rhk Managom?nt . The trustees have performed a review ol the risks that we believe could seriously affect the charity's perfofmance. future prospects, reputation or ils ability lo deliver again81 11$ priorities. This development of our risk process has resulted in the inclusion of liquidity as a principal rlsk. The approval of grants to the Cathedral. our major cash outflow, is c108ely monitored with regular forecasts of cash requirements and regular management accounts that are VieWed by the trustees. The trustees are therefore satisfied that there are appropriate fi'nancial arrangements in place to ensure that the Chgrily 1$ able to carry out its objectlves wllhin its cash Ilow availability. Golng Concern The Trustee8 have revisSled the going concern assessment in January 2023 followin9 on from the outbreak of Covid-19 in early 2020 and the recent cost of living crisis. Although there has been some impact this has been quite minimal and has no material Impact on the financial viability of the charity in the foreseeable future. Obloetlv08 and a¢tlvltloS The Trust is a registered charty whose objects are'.- The Improvement, enhancement and major refurbishment of Manchester Cathedral, its fabric and grounds and any other land owned by or leased to the Trust, and the provision of new facilities and equiprnenl of general benefit to Manchester Cathedral and the community served by Manohesler Cathedral. The Carrylng out andlor provision of financial assislan¢e for Ihe carrying out of new work5 or new additions to Manchester Cathedral including Ibul wilhoul 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 consultats'on with the Cathedral Architect ft)r the time being) bo conSidea to be works which do not constitute part of the normal and routine costs of running Manchester Cathedral. The assisting of the Dean and Canons in such other purposes and objects which the Dean and Canons wish lo carry out and which the trustees consider lo be encompassed within the foregoing objects. The Iru5te95 have had due regard to the Charity Commission guidan on public benefit.
Manchester Cathedral Development Trust Trustees, rnport for the year endod 31 DgGgmbor 2021 Obj•¢tiv•8 and actlvltles {continued Goveming Documentatlon Restriction In raising income for the Charity the Tnjstees shall observe the following restriction.. They shall not undertake any permanent trading activities In raising fvnds for the charitable objects a$ detsiled above. Achl•v•m•nts #nd porformancfr Fundral¥ing Progr888 The Trustees are currently working with the dire¢tor of fundraising to develop the next phase of the Development Plan. During 2018 & 2020 a major exercise was undertaken examining use of space In the Cathedral including a number ol workshops being held with various stakeholders. This project was fijnded by a Resilient Heritage Grant trom the National Heritage Lollery Fund and the results will lead to outline concepts for improvements to the Cathedral fabric. Following this there will be a clear direction for fundraising. Phase 2 of the Ilghting project Is a180 belng developed together with the refvrblshmenl of the Cathedral Library. Externally, there a a number of memorlals being planned as part of the development of the public realm, with particular reference to Victoria Street work8 currently being carried out by Manchester City Council. Flnancl•l Rovlew Total income for the year amounted lo £45.331 compared lo £158,746 in 2020. Grants of £51,950 were made lo the Cathedral In the ye8r12020 £Nill. N81 expenditure for the year amounted to £15.48012020 - Net income £150,222). Al 31 December 2021 reslricled fvnds amounted to £76,612 and unrestriclod funds amounted lo £140,959, The Cathedral requests grants from the charlty as the work progresses on the various projects. Currently, the next phase of the development project is being developed together with a fundraising strategy. R••ep•e• Pollcy The Charity h8s attracted funding for Speclfic purposes over the years includlng the new organ, new lighting and new liturgical furniture. The majority of these projects have now been completed and the grants have been paid to the Cathedral. A number of new sources of donations are being 6stabllshed pa'cUlarlY for the final phase of Ihe new lighting, thus reducing the overall financial risk to the Charity. There is no requirement to hold free reseNes. Al 31 December 2021 total reserves amounted 10 £217,57112020 £233,051) of which £76,61212020 - £76,893) are restricted. Fundr•i$lng Section 162a of the Charities Act 2011 requires charities lo make a statement r8garding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fvnd raising as "soliciting or otherwise procuring money or other propety for charitable purposes." Such amounts receivable are presented in our accounts 8$ voluntary income. and includes legacies and grants. In relation to the above we ¢onfim that all solicitations are managed intemally, wilhoul Involvement of commercial participators or professional fund-raisers, or third partie5. The day to day management of all income 9eneration is delegated to the executive team, who are accountabl6 to the trustees. The charty is not bound by any undertaking to be bound by any regulatory scheme.
Manchester Cathedral Development Trust Trust•O8' report for the yfrar end•d 31 Docomber 2021 Fundralslng (contlnuodl We have received no complaints in relatson to fundralsing aclivitles. Our tem)s of employment require staff lo behave reasonably al all times.. as we do not approach individuals for funds we do not have to particularise this to fundraising aclivitses nor do we consider it necessary to design specific procedures to monitor such activitse$.
Manchester Cathedral Development Trust statement of responslbllltles of th• Tru$tO08 foi the year ended 31 Decembor 2021 ststomont of r•sponslbllbtles of tha Tru8te&8 The Trustees are responsible for preparing the Annual report, Trustees, report and th8 financial statements in accordance with applicable law and regulations. Charity law requires the Tfuslees lo prepare financial slatemenl$ for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom A¢counlSng Stsndards and applicable lawl. Under charity law the Trustees must not approve the financial stalernenls unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming re50urGes and appliGalion of resources, including the income and expenditure. of the Charity for that period. In preparing the88 financial ststemènts, th8 Trustees are required to.. selèct suitable accounting policies and then appty them conslslently., make judgements and accounting esllmates that afe reasonable and prudent., stsle whether appllcable UK Accounting Standards have been follr)wed, subject lo any material departures disclosed and explained in the financial statements,. prepare the financial ststements on the golng concern basis unless it is inappropriate to pSUrne Ihat the Charity will continue in business. Th8 Trus18es are responsible for keeping adequate accounllng records that are sufficlent to show and explain the charity's transactions and disclose with reasonable a¢cura¢y al any lime the flnancial position of the Charity and enable them lo ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other Irregularities. This report was approved by the Trust on 13 Fgbruary 2023 and Slgned on behalf of the Trustee8
Manchester Cathedral Development Trust Report of the independent oxaminer Year ondod 31 Decembgr 2021 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MANCHESTER CATHEDRAL DEVELOPMENT TRUST I report to the trustees on my examination of the accounts of the Trust for the year ended 31 December 2021 which are set out on pages 7 to 15. Thi5 report Is made solely to the charity's trustees. as a body, in a¢¢ordance with Regulation 31 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's trustees those matters l am required lo slate lo them in an independent examinevs report and for no other purpose. To the fullest extent permilled by law, I do not accept or assume responsibility to anyone other than the chanty's trustees as a body, for my work, for this report, or for the statement I have made. Ro8pon•lbllftle8 and ba818 for roport As the trustees of the charity you are responsible for the preparation of the ac¢ounts in accordance with the reqUIrnents of the Chanlies Act 2011 ('the Act'l I report in reSpt of my examination of the charity's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the aPpIable Directions given by the Charity Commission under section 145lSllbl of the Act, Ind¢pend•nt exam1n0$ •tatement I have completed my examination. I confirm that no material matters have com8 to my attention In connection with the examination givlng me cause to believe that in any material respect.. accounting records were not kept in fespect of the charity as required by 8eclion 130 of the Act,, or 2. the accounts do not accord wlth those records.. or 3. the accounts do not comply with th8 accounting requirements concerning the form and content of the acGounls set out in the Charitles IAccounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'lrue and fair view, whlch15 not a matter considered as part of an independent examination., or 4. the accounts hav& not been prepared in 8ccordanc8 with the methods and principles of the Statement of Recommended Practlce for accounting and reF>Orting by charitie$ (applicable lo charllles preparing their a¢¢ounts in accordance with the Financlal Reporting Standard appIlble in the UK and Republic of Ireland IFRS 10211. I have no concerns and have come across no other matters in connectlon with the examination to which attention should be drawn in this report in order to enable a proper understanding of the a¢¢ounls lo be reached. Signed: Heather Wheelhouse ACA BDO LLP Bridgewater House Counterslip Bristol BS168X Date,. 17 February 2023
Manchester Cathedral Development Trust 8al•n¢o sh••1 •$ •t 31 Do¢omb•r 2021 2021 2020 Note8 Current assets Debtors & prepayments Cash at bank and in hand 2,681 249,761 467 239.109 252,442 239.576 Cred5torn: amounts folllng due wlthln one year Creditors & accruals 34.871 6,525 Net curront a••ets 217,571 233,051 Net a8•ot8 217,571 233,051 Fund8 Restricted funds Unrestricted funds 76,612 140,959 76,893 156,158 10 217,571 233,051 These financial stslemenls were approved by the Trustees and authori8ed for issue on 13 FebNary 2023. R.M. Govender The notes on pages 910 15 fomi part of these financial 5tal8menls.
Manchester Cathedral Development Trust Statement of Cash Flows for tho yoar onded 31 Decomber 2021 2021 Totil Fund8 2020 Total Funds Notes Net cash g•neratod by operatlng o¢tlvltlo8 11 10,627 150,966 Ca•h Ilowj from Investlng activltles: Interest and dividends 25 80 Not cash provldod by Invo•tlng acllvltl•s 25 80 Change In cash and cash •qulval•nts In tho yo•r 10,652 151,046 Cash and cash equivalent8 brought forward 239.109 88.063 Cash and cash equN8len18 carried foThvard 249,761 239,109
Manchester Cathedral Development Trust
Notes forming part of the financial statements for the year ended 31 December 2021
1. Accounting policies
The financial statements are prepared under the historical cost convention and in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities SORP (FRS 102)” effective January 2019, applicable UK Accounting Standards and the Charities Act 2011. As a result of this change there has been no overall impact on the net assets of the Charity but there has been a change in the disclosure of certain items. The particular accounting policies adopted by the Trustees are described below. The registered office of the charity is Manchester Cathedral, Victoria Street, Manchester M3 1SX.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005, which has since been withdrawn.
The financial statements are prepared in GBP, being the functional currency, and are rounded to the nearest pound.
Financial Instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value.
Going Concern
The financial statements have been prepared on a going concern basis. In the current economic climate, the trustees acknowledge the effect of the current cost of living crisis and have reforecast the financial position and cash-flows for the period to 31 December 2023. The forecasts confirm that the charity can meet its obligations as they fall due.
The Trustees note that the charity has cash balances available that represent many years of nondiscretionary expenditure. As such the Trustees are satisfied that the Charity can settle its obligations for a period of at least 12 months from the date of signing the financial statements and that it is appropriate for the financial statements to be prepared on a going concern basis.
Fund Accounting
Unrestricted general funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
Restricted funds are funds to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.
Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations are recognised in the statement of financial activities when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be met.
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Manchester Cathedral Development Trust
Notes forming part of the financial statements for the year ended 31 December 2021 Continued
1. Accounting policies (continued)
Income (continued)
Legacy gifts are recognised on a case by case basis following the grant of probate when the executor of the estate has communicated in writing the amount of the legacy, that there are sufficient assets in the estate to pay the legacy and that any conditions attached to the legacy are within the control of the charity or have been met.
Investment income is included when receivable.
Direct Charitable Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured or estimated reliably. All expenditure is accounted for on an accruals basis.
Costs of raising funds comprise the costs associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services to Manchester Cathedral and the community served by Manchester Cathedral. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them including governance costs.
Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing the Financial Statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
There are not considered to be any key areas of judgement in these financial statements.
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Manchester Cathedral Development Trust Not forming part of the flnanclal statsments for tho y•ar ondod 31 Dgcember 2021 Contlnued Incom• Year ended 31 December 2021 Un- Restrlcted ro8lrlcted funds fund8 2021 Total Income Donations and legacies Tax recoverable under Gfft Aid 23,500 19,660 2,146 43,160 2.146 23,500 21,806 45.308 Income from invèstments Interest r8c8ivable on short term deposits 25 25 Total Incom• 23.500 21,831 45,331 Year ended 31 December 2020 R•8trl¢ted r••tri¢t•d fund8 fund• 2020 Total Incom8 Donallons and legacles Tax woverable under Gift Aid 4,000 153,976 690 157,976 690 4.000 154.686 158,668 Incomo from inve8lment8 Interest receivable on short term deposits 80 80 Total Income 4,000 154,746 1S8,746 12
Manchester Cathedral Development Trust Notes formlng part of the financial stalements for the year endod 31 December 2021 Continued Charltablo •xpenditure Year ended 31 December 2021 Rostrlcted fund8 Unre8trlcted 2021 fund8 Tot•1 Grants Manchester Calhedral 23,500 28,450 S1,950 Support costs 1,888 6,973 8,861 25,388 35.423 80.811 Year ended 31 December 2020 Restrlcted fund• Unfestrlcted 2020 funds Total Grants Manchester Calhedral Support Costs 8,524 8,524 8,524 8,524 Support CO81• 2021 Total 2020 Total Support costs include.. Finance costs Governance costs - stalulory accounts Governanc8 costs - independent examiners fee Other costs 3,913 1,025 3,690 233 3.812 1,000 3,281 431 8,861 8,524 Support costs including governance costs are charged to charitsble expendllure and allocated between restricted and unrestricted funds based on the income for the fund in that year. The total 5UPPOrt costs for the year amounted lo £8,861 12020.. £8,524) and include postage. stationery, prinllng, professional fees, sundry expenses and audit fe85. The were no ernployees during the current or previous year. Tru$to08 Rornuneration No Trustees, or person related OT connected by busine55 lo them, have received any remuneralion or had expenses reimbursed from the Charity during the year. The Charity does not have any employees. 13
Manchester Cathedral Development Trust Notes fomiing part of the financial statements for the year ended 31 December 2021 Continued Dobtors and propayrngnts 2021 2020 Gift aid recov&rable Other debtors 2,531 150 2,681 467 CredltOf8: amounts falling duo within one yoar 2021 2020 Manchester Cathedral Accruals 28,450 6.421 8,525 34.871 6,525 Anaty•l• ol net a•ut• betwmn lund• R08trlct•d Unre8trlctod lund8 funds Totsl tund8 Fund bal8nc&s al 31 December 2021 as represented by.. Net current assets 76,612 140,959 217,571 76,612 140.959 217,571 Fund balance8 al 31 December 2020 a8 repre88nled by.. Net current assets 76,893 156,158 233.OS1 76.893 156.158 233,051 Reslrlcted Funds Restricted Funds 2021 Brought fonyard Income Expendlturo Transfer Carrled forward Organ fvnd Roof repair Lighting improvement frjnd Cathedral Fabric fund 48,525 46.525 20,000 {21,6071 1.607 1,242 29.126 1,242 28,845 3,500 {3,7811 76,893 23,$00 125.3881 1,607 76,612 14
Manchester Cathedral Development Trust Notes formlng part of th? finan¢lal statoments for thg year ended 31 Dfr¢&mbor 2021 Contlnued Reslrict•d Funds Icontlnu•dl Restricted Funds 2020 Brought forw•rd Income Expendlture Tran8f•r C8rrled forward Organ fund Lighting improvement fund Cathedral Fabnc fund 46,525 1,242 25,126 46,525 1,242 29,126 4,000 72,893 4.000 76,893 All restricted funds relale to repairs or improvements lo Manchester Cathedral. 10. Unre8tricted Fund• Brought forward Incom• Expondlture Trnn8fer• Carrled forward UnStricted Funds 2021 156,158 21,831 135,423) 1,6071 140,959 Unreslrlcted Funds 2020 9,936 154,746 18,5241 156,158 11. Cash flow Reconcillation of net income to net cash generated by operating actlvilieg-. 2021 2020 Nel movement in funds as per the stslement of ffinan¢lal activities Adjustments for.. Deduct interest and dividend Inco shown in investing activities IlncTeaselldecrease in debtors Increaselldecreas&l in creditors 115,4801 150,222 1251 12,2141 28,346 1801 1,947 11,1231 Net cash generated by operabng activities 10,627 150,966 12. Relatsd Parti The Capitular Trustees are ThMberS of the Chapter of Manchester Cathedral which receNed grants In the year amounting to £51,95012020- £Nill as set out in note 3 on p8ge 12. Al 31 December 2021 £28,450 was owed lo Manchester Cathedral12020 - £Nil). 15