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2020-11-30-accounts

St Albans Cathedral Music Trust

Annual Report and Financial Statements

For The Year Ended 30 November 2020

Charity Number: 1051072

ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

CONTENTS

Trustees’ annual report 3 – 9
Independent auditor’s report to trustees 10 - 11
Statement of financial activities 12
Balance sheet 13
Notes to the financial statements 14 – 24

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020

TRUSTEES

Christopher Muhley – Chair Ralph Abel Smith Professor Tim Blinko (to 10 November 2020) Moira Dean The Very Reverend Jeffrey John Pete Letanka Andrew Lucas Christopher Melluish Lady Shelagh Nichols John Palmer Peter Trevelyan (to 10 March 2020) Gini Trower

St Albans Cathedral Music Trust is governed by a Trust Deed dated 30 October 1995. The Trust is registered as a charity by the Charity Commission (registration number 1051072).

PRINCIPAL ADDRESS

St Albans Cathedral Sumpter Yard St Albans AL1 1BY

BANKERS

Barclays Bank plc 16-18 St Peters Street St Albans AL1 3NA

AUDITORS

Mercer & Hole 72 London Road St Albans AL1 1NS

TREASURER

Timothy Fleming Chief Operating Officer, St Albans Cathedral Sumpter Yard St Albans AL1 1BY

INVESTMENT MANAGERS

CCLA Investment Management Ltd Senator House, 85 Queen Victoria Street London EC4V 4ET

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

THE TRUST’S AIMS AND OBJECTIVES

The objects of the Trust as set out in its Trust Deed are:

The main aim of the Trust is to build a level of endowment sufficient to fund the day to day cost of St Alban Cathedral’s music and to realise the Trust’s vision for the Cathedral’s musical life.

St Albans Cathedral has much to celebrate as a centre of musical excellence. Music is central to worship at the Cathedral. It expresses divine mysteries and human longings where words fail, and creates harmony out of difference. The Cathedral has two of the finest cathedral choirs in the country, a magnificent Harrison & Harrison organ, a busy programme of innovative musical events and concerts, and various voluntary choirs and music groups which add further dimension to the Cathedral’s worship.

The Trust supports and develops the Cathedral’s tradition of choral worship and promotes music of the highest quality in the Cathedral. Unlike many of the ancient cathedrals, St Albans Cathedral has no historic endowment to support its music. The costs of the choirs and the upkeep of the Cathedral’s organs all have to be found from operating income.

The Trust’s current vision is to enable and sustain a flourishing and financially secure musical life at the Cathedral through:

The cathedral choirs sing at services six days a week throughout term time, rehearsing both before and after school. Their work is all the more remarkable because the choristers do not attend a special choir school, but come from a wide variety of backgrounds and attend a number of different local schools. In addition to the daily round of choral services and rehearsal, the choirs take part in concerts, tours, broadcasts and recordings.

The Cathedral’s Harrison & Harrison organ was built in 1962 to a design by Peter Hurford and Ralph Downes. It was the first organ to be installed in an English cathedral in the twentieth century on the classical principles of voicing, layout and chorus design. Containing over 4,500 pipes, varying from half and inch to 32 feet, each pipe plays its part in producing the glorious mixture of sounds that the organ delivers. The organ can be heard being played almost every day, either for choir rehearsal, organ practice or service accompaniment.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

TRUST ADMINISTRATION

The board of trustees met on two occasions during the year to direct and monitor the work of the Trust. The Trust is supported in its day to day activities by St Albans Cathedral’s development and finance teams.

The Trust Deed provides for two ex-officio trustees, namely the Dean of St Albans Cathedral and the Master of the Music of St Albans Cathedral. All other trustees are appointed by the board of trustees on the basis of suggested joint nominations from the two ex-officio trustees. Trustees hold office for a period of five years and may be reappointed for a further single term of five years.

Trustees are selected for the skills and experience they can bring to the Trust, in particular expertise in music and fundraising. On appointment, trustees are briefed as necessary on the aims and objectives of the Trust and their legal responsibilities. All new trustees sign a model trustee declaration statement confirming their eligibility and responsibilities.

RELATIONSHIP WITH ST ALBANS CATHEDRAL

As an independent charity, the Trust is not controlled by St Albans Cathedral. The Trust exists for the Cathedral’s financial benefit and therefore summarised results of the Trust’s activities are disclosed for information in St Albans Cathedral’s financial statements.

FINANCIAL SUPPORT FOR THE CATHEDRAL’S MUSIC

The Trust made grants to St Albans Cathedral in the year amounting to £103,245 (2019: £97,886). This comprised:

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

CHARITABLE EVENTS IN SUPPORT OF THE CATHEDRAL’S MUSIC

As well as direct financial grants to St Albans Cathedral, the Trust seeks to support and promote the Cathedral’s musical activity through various charitable events. The Trust was fortunate in that its annual Outreach Concert and the St Albans Young Musicians Competition were both able to take place before restrictions came into force as a result of the COVID-19 pandemic. The planned biennial Cathedral Choirs Concert and usual annual Patrons Evensong could not take place.

Outreach Concert

The Trust is always delighted to be able to host an annual outreach concert featuring the Cathedral Choir, this year held at St Etheldreda Church, Hatfield. The Trust provided financial support of £3,470 to enable the event to take place. The concert is an important part of the Trust’s work, taking the Cathedral’s high-quality music-making out and into the Diocese.

St Albans Young Musicians Competition

2020 was the ninth year of the competition. Shortlisted applicants from local primary and secondary schools were invited to compete at the competition finals on 1 March to a public audience in the Nave. The competition combined ensemble performances together with accomplished solo performances, providing a valuable opportunity to promote and celebrate high quality music from schools throughout the diocese. This year’s event made a small surplus of £66.

THE TRUST’S FUNDRAISING AND DONOR ENGAGEMENT

The Trust receives donations through patron subscriptions, fundraising and endowments.

Alban Foundation

The Trust is delighted to continue to work in partnership with the St Albans Cathedral Alban Foundation. The foundation helps the Cathedral and its connected fundraising trusts to nurture, develop and promote their fundraising. Its members play a pivotal role in fundraising activity, and support the stewardship and continued engagement of all those who have given to the Cathedral and connected organisations such as this Trust. The foundation supports the Cathedral’s governing body in its determination of future fundraising priorities and works closely with all the Cathedral’s connected fundraising trusts to deliver a consolidated approach to donor engagement and specific fundraising initiatives. The Chair of the Trust is an ex-officio member of the foundation.

Endowments

There are currently 4 endowed lay clerks and 35 endowed choristers, generously funded by donors past and present. The Trust is also grateful to all those who support the ‘Endow a Day’s Music’ programme, with 46 days currently endowed.

Legacies

The Trust is ever grateful to all who have contributed to the Trust by way of legacies. Legacy giving can often provide the Trust with the opportunity to make specific grants to the Cathedral in pursuit of the Trust’s vision that it would otherwise be unable to do. Unrestricted legacies totalling £5,000 (2019: £8,000) were received in the year.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

THE TRUST’S FUNDRAISING AND DONOR ENGAGEMENT (continued)

Donations

Donations of £12,928 (2019 £14,256) were received in the year from the Trust’s many patrons and other donors, including those through the ‘Adopt a Pipe’ scheme. ‘Adopting St Albans Cathedral’ was launched by the Cathedral in 2019 as a new way for visitors and all who love the Cathedral to give their support to help safeguard its treasures for the next generation. One of the ways of giving is to ‘Adopt a Pipe’ from the magnificent Harrison & Harrison organ containing over 4,500 pipes. All gifts from ‘Adopt a Pipe’ are passed to the Trust, essentially as a successor scheme to the Trust’s predecessor initiative along the same lines of ‘Sponsor a Pipe’.

Fundraising Events

The Trust’s usual fundraising and donor engagement events were seriously curtailed as a result of the COVID-19 pandemic, with all in-person fundraising events essentially prohibited from mid-March 2020.

Advent Procession and Dinner

The 2019 Advent Procession and Dinner took place on 1 December 2019, raising £1,949 after expenses towards the work of the Trust.

Guitar Recitals

Two lunchtime guitar recitals were held in the Cathedral’s Lady Chapel in February and March 2020, featuring classical guitarists Michael Butten, Bartosz Glowacki and Andrey Lebedev. The retiring collections were shared between the Trust and the Cathedral and raised £638 for the Trust.

FUTURE PLANS AND ACTIVITIES

Charitable Events

Plans for charitable events in 2021 are currently on hold and dependent on the restrictions and wider impacts of the COVID-19 pandemic. The St Albans Cathedral Young Musicians Competition has been postponed, as has the annual outreach concert usually held towards the start of the year. Plans for later in the year will be reviewed by the board of trustees as and if restrictions lift.

Fundraising Events

Fundraising events are especially difficult right now. The 2020 Advent Carol Service was still able to take place, but with heavily reduced numbers and the usual reception and supper for patrons could not take place afterwards. Donations from this service were directed to the Trust. Any further fundraising events during 2021 remain highly uncertain at this stage.

Donor Engagement

The Trust continues to produce a regular newsletter as an important means of promoting the aims and achievements of the Trust to both its patrons and wider audiences, especially in these difficult times. A readily accessible leaflet titled ‘How you can support music in St Albans Cathedral’ has been produced and is available in the Cathedral and promoted at relevant events.

Nave Organ

The Cathedral continues its longstanding and lengthy process of evaluating options for a new Nave section for the Cathedral’s organ. A design has been found that will work acoustically, but this has inherent complexities over positioning and location that are not yet fully acceptable to the Cathedral’s fabric regulators. The Trust is hopeful this position will change over time so that the project will be able to proceed. Funding remains set aside to support the project, comprising the Trust’s Organ Appeal Fund and Lyne Legacy Fund.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

FUTURE PLANS AND ACTIVITIES (continued)

Song School

The Cathedral’s Chapter House Song School came back into use during 2019 following completion of the works associated with the Cathedral’s Alban, Britain’s First Saint development project. The Cathedral’s choirs continue to use the Deanery Song School as an additional space. The Trust has agreed to release up to £50,000 from the Salisbury Legacy Fund to enable the improvement of facilities in the Chapter House Song School, including new music desks, a modification to the new rehearsal organ and the purchase of a new rehearsal piano.

THE TRUST’S FINANCIAL POSITION

Overall position

The Trust’s net assets at the end of the year totalled £2,954,734 (2019: £2,811,191).

Investments

Funds held for long-term endowment purposes are invested with CCLA Investment Management in their CBF Investment Fund. CCLA manages investments for the Church of England, other charities and a number of local authorities. The Trust’s investments in the CCLA CBF Investment Fund amounted to £2,788,474 (2019: £2,632,444) at the end of the year. Capital additions to the fund over the course of the year amounted to £3,000 (2019: £17,000). The net annual gain on the fund arising from revaluations amounted to £153,030 (2019: £293,816).

The Trust’s short-term deposit investments are held in the CCLA CBF Deposit Fund and amounted to £154,235 (2019: £161,308) at the end of the year.

Reserves

As the main aim of the Trust is to build a level of endowment sufficient to fund the day to day cost of the Cathedral’s music and to realise the Trust’s vision for the Cathedral’s musical life, the vast majority of the Trust’s funds are held as capital endowment funds. Where income has been donated to the Trust for specific purposes and has not been used in the year, this income is necessarily held in restricted income funds.

The Trust holds a relatively small level of free reserves in order to meet its financial liabilities, operational commitments and likely future ad-hoc grant funding. The Trust’s total unrestricted funds stand at £218,119 (2019: £221,884) at the end of the year. Of these unrestricted funds, £41,933 (2019: £43,417) represent free reserves, the remainder being designated for specific purposes. The Trust aims to maintain its free reserves at a trend level of around £15,000 to £20,000. A combination of legacy receipts and the final distribution from the Cathedral’s historic fundraising campaigns has meant the Trust’s free reserves have been above this position in recent years. The board of trustees maintains an ongoing process to identify ways in which the Trust can best make use of these additional funds, both in the near-term and longer-term. This year’s grant of £2,500 towards the costs of online choir recordings is an example of this. Further grants totalling £16,000 had been earmarked for distribution relating to various music events and recordings, but the COVID-19 pandemic has unfortunately put play to these being made for now.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

RISK MANAGEMENT

Careful consideration is given to the major risks and wider external environment to which the Trust is exposed. The board of trustees has ultimate responsibility for the Trust’s overall risk management and internal control, recognising that any risk management and internal control framework can only manage risk to a reasonable level rather than to eliminate all risk of failure, and can provide only reasonable, and not absolute, assurance against material misstatement or loss.

As a fundraising body, the Trust has specific risks to manage, principally in the areas of fundraising, financial control and compliance. Systems and procedures are in place covering each of these risk areas. The Trust uses the Cathedral’s finance team for transactional processing, financial reporting and compliance activities, and the Cathedral’s development team for fundraising advice and support. The Trust monitors its profile, reputation and presence on an ongoing basis.

PUBLIC BENEFIT

The board of trustees confirms it has complied with the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining its activities. By supporting St Albans Cathedral, the Trust helps promote religion and music of the highest standard that is available to all.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The board of trustees is responsible as follows with regard to the annual report and financial statements:

The board of trustees confirms the financial statements have been prepared in accordance with the accounting policies set out in notes to the financial statements and comply with the provisions of the Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Christopher Muhley Chair

On behalf of the board of trustees 9 March 2021

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF ST ALBANS CATHEDRAL MUSIC TRUST

Opinion

We have audited the financial statements of St Albans Cathedral Music Trust for the year ended 30 November 2020 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Charity’s trustees, as a body, in accordance with regulations made under section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees 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 Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you where:

Other information

The Charity’s trustees are responsible for providing the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

INDEPENDENT AUDITOR’S REPORT (continued)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the Charity’s trustees

As explained more fully in the trustees’ responsibilities statement set out on page 9, the Charity’s trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine 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 Charity’s trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Charities Act 2011 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Charities Act 2011 will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decision of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.fc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Steve Robinson FCA

Mercer & Hole, 72 London Road, St Albans, AL1 1NS Statutory Auditor

Mercer & Hole is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 NOVEMBER 2020

Unrestricted Designated Restricted Endowment
Funds Funds Funds Funds Total Total
Note 2020 2020 2020 2020 2020 2019
£ £ £ £ £ £
Income and endowments
Donations 3 14,951 - - 3,000 17,951 38,493
Legacies 5,000 - - - 5,000 8,000
Fundraising events 4 3,930 - - - 3,930 10,210
Charitable events 5 1,160 - - - 1,160 1,454
Investments 163 419 328 73,995 74,905 72,495
__ __ __ __ __ __
Total income 25,204 419 328 76,995 102,946 130,652
__ __ __ __ __ __
Expenditure
Grants for the benefit of 6 17,500 11,750 - 73,995 103,245 97,886
St Albans Cathedral
towards music
Cost of fundraising events 4 1,343 - - - 1,343 1,774
Cost of charitable events 5 4,564 - - - 4,564 4,511
Maintenance of Hurford Organ - - - - - 123
Publicity, printing and postage 508 - - - 508 1,271
Sundry expenditure 193 - - - 193 209
Audit fee 2,580 - - - 2,580 2,520
__ __ __ __ __ __
Total expenditure 26,688 11,750 - 73,995 112,433 108,294
__ __ __ __ __ __
Net income/(expenditure) (1,484) (11,331) 328 3,000 (9,487) 22,358
before gains/(losses) on
investments
Net gains/(losses) on 7 - 9,050 7,071 136,909 153,030 293,816
investments
__ __ __ __ __ __
Net income/(expenditure) (1,484) (2,281) 7,399 139,909 143,543 316,174
and net movement in funds
Reconciliation of funds
Total funds brought forward 43,417 178,467 138,549 2,450,758 2,811,191 2,495,017
__ __ __ __ __ __
Total funds carried forward 41,933 176,186 145,948 2,590,667 2,954,734 2,811,191
============== ============== ============== =============== =============== ===============

All amounts above relate to continuing operations and the Trust has no other recognised gains or losses.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

BALANCE SHEET AS AT 30 NOVEMBER 2020

Total Total
Note 2020 2019
£ £
Fixed assets
Investments 7 2,788,474 2,632,444
____ ____
Current assets
Debtors 8 80 9,413
Short term cash deposit investments 154,235 161,308
Cash at bank 11,945 9,146
____ ____
166,260 179,867
Current liabilities
Creditors 9 - (1,120)
____ ____
Net current assets 166,260 178,747
____ ____
Net assets 2,954,734 2,811,191
================= =================
The charity’s funds
Endowment funds 10 2,590,667 2,450,758
Restricted funds 11 145,948 138,549
Designated funds 12 176,186 178,467
Unrestricted funds 41,933 43,417
____ ____
Total funds 13 2,954,734 2,811,191
================= =================

The financial statements on pages 12 to 24 were approved by the Trust’s board of trustees on 9 March 2021 and signed on its behalf by

Christopher Muhley Chair

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

NOTES TO THE FINANCIAL STATEMENTS

1. Accounting policies

Basis of preparation and assessment of going concern

The financial statements have been prepared on a going concern basis under the historic cost convention, with items recognised at cost or transaction value, apart from investments which are held at market value. The financial statements have been prepared in accordance with (1) the second edition of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019; (2) the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in March 2018; (3) other applicable United Kingdom Generally Accepted Accounting Practice as it applies from 1 January 2019; and (4) the Charities Act 2011.

The financial statements have been prepared to give a true and fair view and have departed from the extant 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: Statement of Recommended Practice for charities preparing their financial statements in accordance with FRS 102, rather than following the since withdrawn Accounting and Reporting by Charities: Statement of Recommended Practice (SORP 2005) as referenced in the regulations.

The Trust constitutes a public benefit entity as defined by FRS 102.

The financial statements are prepared in £ sterling, which is the functional currency. Monetary amounts in the financial statements are rounded to the nearest £.

The board of trustees consider that there are no material uncertainties related to events or conditions about the Trust’s ability to continue as a going concern. The board is of the opinion that the Trust has sufficient ongoing income and cashflow to meet its liabilities as they fall due. The board has made its going concern assessment in respect of a period of at least one year from the date of approval of these financial statements.

Income

Income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the monetary value of the income can be measured with sufficient reliability. If the use of income has been restricted, it is used for the specific purpose in the year or credited to an appropriate fund until it can be spent for the restricted purpose.

Income is received by way of donations from patrons, fundraising events, appeals, legacies, endowments and other general donations. Pledged donations are not recognised until they are received as too much uncertainty over their receipt remains. Gift Aid on donations is recognised when a claim is submitted to HMRC. Any Gift Aid recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.

Legacies are accounted for on a receivable basis when they meet the income recognition criteria set out above. Typically this will only be after grant of probate, the executors have established there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. Where legacies have been notified to the Trust and the criteria for income recognition have not been met, details of the legacy are disclosed if material in the notes to the financial statements.

Investment income is recognised on a receivable basis once it has been declared and notification has been received of the dividend due.

No amounts are included in the financial statements to reflect the value of services provided free of charge to the Trust by its many volunteers.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

Expenditure

Expenditure is recognised as soon as there is a legal or constructive obligation to transfer economic benefits as a result of past transactions or events, it is probable that the transfer of economic benefit will be required in settlement and the monetary value of the settlement can be measured with sufficient reliability. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Taxation

The charity is entitled to certain tax exemptions on income and profits from investments, and on any surpluses from trading activities carried out in furtherance of the Trust’s primary objectives, providing any income, profits and surpluses are applied solely for charitable purposes. Irrecoverable VAT is charged to the appropriate expenditure heading.

Investments

Listed investments are stated at market value as fair value at the balance sheet date. Realised and unrealised gains and losses relating to the movement in valuation or sale of listed investments are shown in the Statement of Financial Activities in the year in which they arise. Investments held on cash deposit are stated at face value at the balance sheet date. The carrying values of all investments are reviewed annually to establish if there has been any material impairment in their value.

Financial instruments

The Trust holds only basic financial instruments. The Trust’s financial instruments, represented by its financial assets and financial liabilities, and their measurement bases, are as follows. The only class of financial instrument measured at fair value as opposed to amortised cost or cost less impairment is listed investments within fixed asset investments, the carrying amount of which is provided in note 7.

Financial assets:

Listed investments within fixed asset investments are held at fair value as set out above. Amounts due from connected entities and accrued income within debtors are debt instruments measured at amortised cost and are held at their settlement amount less any provision for nonrecoverability. Prepayments within debtors are not deemed to be financial assets as the cash settlement has already taken place.

Short term cash deposit investments are held at face value. Cash at bank is held at face value.

Financial liabilities:

Amounts due to connected entities and accruals within creditors are debt instruments measured at amortised cost and are held at their anticipated settlement amount. Deferred income within creditors is not deemed to be a financial liability as the cash settlement has already taken place and there is an obligation to deliver charitable services rather than cash or another financial instrument.

Funds

Funds provide the financial resources for the Trust’s activities. The Trust’s funds are divided between unrestricted funds and restricted funds. Unrestricted funds are expendable at the discretion of trustees in furtherance of the Trust’s objectives. Trustees also have the discretion to set aside unrestricted funds for designated purposes. Restricted funds can only be applied in furtherance of some particular aspect as defined by the donor at the point of donation or at the point of fund establishment. These conditions, or trusts, are binding on the trustees. The restriction can be explicitly declared by the donor, implied with their authority (e.g. in a public appeal), or established by the Trust Deed or other legal process. Much of the Trust’s restricted income is held in the form of endowment, in line with the Trust’s retention of such income as capital in order to generate investment income. The Trust’s endowment is expendable, meaning the board of trustees can at some point in the future determine it is in the best interests of the Trust to spend or apply the endowment capital. The board of trustees has no current plans to do so.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

Significant areas of judgement in the application of accounting policies

In preparing the financial statements, the board of trustees may have to make a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenditure in the application of the Trust’s accounting policies set out above. The board does so on a continuous evaluation basis using historical experience and prudent evaluation of future events that are believed to be reasonable under the circumstances. In doing so the resulting accounting estimates will, by definition, seldom equal the related actual results. In the course of preparing the financial statements, no judgements have been made in the process of applying the Trust’s accounting policies, other than those involving estimates about the future (which are dealt with separately below), that have had a significant effect on the recognition and measurement of assets, liabilities, income and expenditure in the financial statements.

Reporting uncertainty in the next reporting period from judgements involving estimates about the future With respect to the Trust’s next reporting period, the year ending 30 November 2021, the most significant areas of uncertainty from judgements involving estimates about the future that may affect the carrying value of assets and liabilities held by the Trust as at 30 November 2020 are as follows.

Legacy income:

In applying the Trust’s accounting policies to legacy income, the board of trustees uses the income recognition criteria set out above to determine when it is appropriate to recognise legacy income in the financial statements. This can involve applying judgement over the probability of the income being received and its ability to be measured with sufficient reliability and, once recognised, estimation of the monetary value of the income. As at 30 November 2020 £nil (2019: £8,000) of legacy income has been recognised in the financial statements that has not yet been physically received.

Listed investments:

Although not impacted by judgement involving estimates about the future as the fair value of listed investments can be accurately obtained at any one point in time, the following disclosure is provided due to the relative significance of the Trust’s listed investments to overall net assets. The actual fair value of the Trust’s listed investments at any one time is affected by market-driven changes and the performance of uncertain investment markets outside of the Trust’s direct control. Fair values at the reporting date may therefore vary from those in the future. As at 30 November 2020 the value of the Trust’s listed investments amounted to £2,788,474 (2019: £2,632,444) (see note 7).

2. Staff costs and key management personnel

The Trust does not have any employees. The trustees consider the board of trustees as comprising the Trust’s key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. No remuneration, other benefits or expenses is paid to any of the trustees.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

3. Donations

3.
Donations
2020 2019
£ £
Unrestricted funds
General donations 12,928 14,256
Donations in memory of Peter Hurford - 3,981
Gift Aid 2,023 2,738
14,951 20,975
Restricted funds
Organ Appeal - 455
Gift Aid - 63
- 518
Endowment funds
Endow a Day’s Music 2,400 12,035
Gift Aid 600 4,965
3,000 17,000
Total donations 17,951 38,493
============ ===========
4.
Fundraising events income and expenditure
Surplus/
Income Expenditure (deficit)
£ £ £
2020
Advent Procession and Dinner 3,292 1,343 1,949
Guitar Recitals 638 - 638
_ _ _
3,930 1,343 2,587
============ ============ ============
2019 comparatives
Advent Procession and Dinner 4,093 1,376 2,717
Guitar Recitals 469 - 469
Sponsored Cycle Ride 4,622 200 4,422
Piano Recital 1,026 198 828
_ _ _
10,210 1,774 8,436
============ ============ ============

17

ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

5. Charitable events income and expenditure

Surplus/
Income Expenditure (deficit)
£ £ £
2020
Outreach Concert - 3,470 (3,470)
Young Musicians Competition 1,160 1,094 66
_ _ _
1,160 4,564 (3,404)
============ ============ ============
2019 comparatives
Outreach Concert - 3,585 (3,585)
Young Musicians Competition 1,454 820 634
Patrons Evensong - 106 (106)
_ _ _
1,454 4,511 (3,057)
============ ============ ============
  1. Grants for the benefit of St Albans Cathedral towards music
6.
Grants for the benefit of St Albans Cathedral towards music
2020
£
Unrestricted funds
Cathedral music
6,000
Cathedral development team
4,000
Online choir recordings
2,500
Cathedral Boys Choir tour
-
Cathedral Girls Choir recording
-
Cathedral choir chaperone
5,000
17,500
Designated funds
Microphones and livestreaming equipment
11,750
New rehearsal organ for Cathedral Song School
-
11,750
Endowment funds
Endow a Day’s Music
16,718
Choristerships and Scholarships
57,277
73,995
Total grants
103,245
=============
 2019
£
6,000
4,000
-
5,000
5,000
5,000
25,000
-
1,300

1,300

15,976
55,610

71,586

97,886
=============

As at 30 November 2020, the Trust had committed grant funding to be paid during the year to 30 November 2021 of £15,000 from its unrestricted funds, up to £50,000 from its designated funds, and the investment income that will be earned in that year from its endowment funds. In any one year, a number of further specific grants are likely to be paid from the Trust’s unrestricted funds towards specific musical activities.

18

ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

7. Investments

7.
Investments
2020 2019
£ £
Valuation at 1 December 2,632,444 2,369,628
Additions 3,000 17,000
Withdrawals - (48,000)
Net gain on revaluation 153,030 293,816
___ ___
Valuation at 30 November 2,788,474 2,632,444
================ ================

The Trust’s investments are held in a pooled common investment fund with CCLA Investment Management in their CBF Investment Fund. The fund’s portfolio comprises an actively managed, diversified portfolio of assets, investing mainly in equities but also including property, bonds and other asset classes. The historic cost of the investments held at 30 November 2020 is £1,512,766 (2019: £1,509,766).

8. Debtors
2020 2019
£ £
All due within one year
Prepayments and accrued income 80 9,413
______ _____
80 9,413
========== =========
9. Creditors
2020 2019
£ £
All due within one year
Accruals and deferred income - 1,120
______ ______
- 1,120
========== ==========

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

10. Endowment funds

10.
Endowment funds
2020 Balance Movement in resources Reval’n Balance
1 Dec Incoming Outgoing Transfer 30 Nov
2019 2020
£ £ £ £ £ £
The Endow a Day's Music Fund 552,341 19,718 (16,718) - 30,905 586,246
The Bassett Legacy Fund 39,368 2,418 (2,418) - 4,474 43,842
The Ouseley Trust Fund 80,129 1,188 (1,188) - 2,198 82,327
The Laing Choristership 38,622 1,165 (1,165) - 2,156 40,778
The Alban 2000 Fund 86,950 2,623 (2,623) - 4,859 91,809
The Steel Trust Scholarship 45,283 1,366 (1,366) - 2,528 47,811
The Pilling Trust Choristership 55,831 1,684 (1,684) - 3,117 58,948
The Fraternity of Friends Fund 55,339 1,670 (1,670) - 3,090 58,429
The Friends of Cathedral Music Fund 55,137 1,664 (1,664) - 3,079 58,216
The Wixamtree Trust Fund 53,194 1,605 (1,605) - 2,970 56,164
The Kirby Laing Foundation Fund 53,194 1,605 (1,605) - 2,970 56,164
The Parnell Scholarship 51,953 1,567 (1,567) - 2,901 54,854
The Pallant Trust Scholarship 53,517 1,615 (1,615) - 2,988 56,505
The Leathersellers Scholarship 49,123 1,482 (1,482) - 2,743 51,866
The Fraternity of Friends (Hunt) Fund 47,960 1,447 (1,447) - 2,678 50,638
The Steel Trust (No 2) Scholarship 43,916 1,325 (1,325) - 2,452 46,368
The (John) Stocker Choristership 44,479 1,342 (1,342) - 2,484 46,963
The Elles Carver Choristership 46,605 1,406 (1,406) - 2,602 49,207
The Berryman Fund (Bowland Trust) 41,332 1,247 (1,247) - 2,308 43,640
The Guy Whalley Choristership 43,746 1,320 (1,320) - 2,443 46,189
The Atkinson Scholarship 49,183 1,484 (1,484) - 2,746 51,929
The Hurford Scholarship 54,640 1,649 (1,649) - 3,051 57,691
The Wixamtree Trust (No 2) Fund 38,418 1,159 (1,159) - 2,145 40,563
The Blossom Choristership 38,593 1,164 (1,164) - 2,155 40,748
The Andrews Choristership 54,905 1,656 (1,656) - 3,066 57,971
The Foxton Choristership 62,378 1,882 (1,882) - 3,483 65,861
The Rosecroft Lay Clerkship 107,066 3,230 (3,230) - 5,978 113,044
The Fraternity of Friends (No 2) Fund 55,424 1,672 (1,672) - 3,095 58,519
The Griffiths Choristership 43,944 1,326 (1,326) - 2,454 46,398
The Filkin Choristership 43,944 1,326 (1,326) - 2,454 46,398
The St Ronan Choristership 45,115 1,361 (1,361) - 2,519 47,634
The Freeman Choristership 44,167 1,333 (1,333) - 2,466 46,633
The Mainstone Choristership 33,465 1,010 (1,010) - 1,869 35,334
The Fayrfax Scholarship 81,734 2,466 (2,466) - 4,564 86,298
The Oram Scholarship 37,876 1,143 (1,143) - 2,114 39,990
The Salisbury Choristership 45,860 1,383 (1,383) - 2,561 48,421
The Burton (Ford) Choristership 10,044 303 (303) - 561 10,605
The Lois Scott Choristership 34,435 1,039 (1,039) - 1,922 36,357
The Parkinson Choristership 31,548 952 (952) - 1,761 33,309
___ _ __ ______ _ ___
2,450,758 76,995 (73,995) - 136,909 2,590,667
=============== ============ ============= ========== ============ ===============

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

10. Endowment funds (continued)

2019 comparatives Balance Movement in resources Movement in resources Movement in resources Reval’n Balance
1 Dec Incoming Outgoing Transfer 30 Nov
2018 2019
£ £ £ £ £ £
The Endow a Day's Music Fund 476,235 32,976 (15,976) - 59,106 552,341
The Bassett Legacy Fund 35,129 1,153 (1,153) - 4,239 39,368
The Ouseley Trust Fund 71,500 2,347 (2,347) - 8,629 80,129
The Laing Choristership 34,463 1,131 (1,131) - 4,159 38,622
The Alban 2000 Fund 77,590 2,547 (2,547) - 9,360 86,950
The Steel Trust Scholarship 40,407 1,326 (1,326) - 4,876 45,283
The Pilling Trust Choristership 49,819 1,635 (1,635) - 6,012 55,831
The Fraternity of Friends Fund 49,380 1,621 (1,621) - 5,959 55,339
The Friends of Cathedral Music Fund 49,200 1,615 (1,615) - 5,937 55,137
The Wixamtree Trust Fund 47,466 1,558 (1,558) - 5,728 53,194
The Kirby Laing Foundation Fund 47,466 1,558 (1,558) - 5,728 53,194
The Parnell Scholarship 46,358 1,522 (1,522) - 5,595 51,953
The Pallant Trust Scholarship 47,754 1,568 (1,568) - 5,763 53,517
The Leathersellers Scholarship 43,833 1,439 (1,439) - 5,290 49,123
The Fraternity of Friends (Hunt) Fund 42,796 1,405 (1,405) - 5,164 47,960
The Steel Trust (No 2) Scholarship 39,188 1,287 (1,287) - 4,728 43,916
The (John) Stocker Choristership 39,689 1,303 (1,303) - 4,790 44,479
The Elles Carver Choristership 41,587 1,365 (1,365) - 5,018 46,605
The Berryman Fund (Bowland Trust) 36,881 1,211 (1,211) - 4,451 41,332
The Guy Whalley Choristership 39,035 1,281 (1,281) - 4,711 43,746
The Atkinson Scholarship 43,887 1,441 (1,441) - 5,296 49,183
The Hurford Scholarship 48,756 1,601 (1,601) - 5,884 54,640
The Wixamtree Trust (No 2) Fund 34,281 1,125 (1,125) - 4,137 38,418
The Blossom Choristership 34,437 1,130 (1,130) - 4,156 38,593
The Andrews Choristership 48,993 1,608 (1,608) - 5,912 54,905
The Foxton Choristership 55,661 1,827 (1,827) - 6,717 62,378
The Rosecroft Lay Clerkship 95,536 3,136 (3,136) - 11,530 107,066
The Fraternity of Friends (No 2) Fund 49,456 1,624 (1,624) - 5,968 55,424
The Griffiths Choristership 39,212 1,288 (1,288) - 4,732 43,944
The Filkin Choristership 39,212 1,288 (1,288) - 4,732 43,944
The St Ronan Choristership 40,257 1,322 (1,322) - 4,858 45,115
The Freeman Choristership 39,411 1,294 (1,294) - 4,756 44,167
The Mainstone Choristership 29,862 980 (980) - 3,603 33,465
The Fayrfax Scholarship 72,933 2,394 (2,394) - 8,801 81,734
The Oram Scholarship 33,797 1,110 (1,110) - 4,079 37,876
The Salisbury Choristership 40,922 1,343 (1,343) - 4,938 45,860
The Burton (Ford) Choristership 8,962 294 (294) - 1,082 10,044
The Lois Scott Choristership 30,727 1,009 (1,009) - 3,708 34,435
The Parkinson Choristership 28,151 924 (924) - 3,397 31,548
___ _ __ ______ _ ___
2,170,229 88,586 (71,586) - 263,529 2,450,758
=============== ============ ============= ========== ============ ===============

The Endow a Day’s Music Fund supports the total cost of daily music at the Cathedral. Donors to the fund select a date on which their gift is recognised.

All other Endowment Funds are used for the purposes of sustaining the financial costs of a chorister or lay clerk within the Cathedral. Donors are associated in perpetuity with a particular chorister’s or lay clerk’s place in the choirs.

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

11. Restricted funds

2020 Balance Movement in resources Movement in resources Movement in resources Reval’n Balance
1 Dec Incoming Outgoing Transfer 30 Nov
2019 2020
£ £ £ £ £ £
Organ Appeal Fund 138,549 328 - - 7,071 145,948
_ ______ ______ ______ ______ _
138,549 328 - - 7,071 145,948
============= =========== =========== =========== =========== =============
2019 comparatives Balance Movement in resources Reval’n Balance
1 Dec Incoming Outgoing Transfer 30 Nov
2018 2019
£ £ £ £ £ £
Organ Appeal Fund 126,803 952 - - 10,794 138,549
_ ______ ______ ______ ______ _
126,803 952 - - 10,794 138,549
============= =========== =========== =========== =========== =============

The Organ Appeal Fund has been established to fund the restoration and enhancement of the Cathedral’s renowned Harrison & Harrison organ.

12. Designated funds

2020 Balance Movement in resources Movement in resources Movement in resources Reval’n Balance
1 Dec Incoming Outgoing Transfer 30 Nov
2019 2019
£ £ £ £ £ £
Lyne Legacy Fund 106,076 150 - - 7,071 113,297
Salisbury Legacy Fund 72,391 269 (11,750) - 1,979 62,889
_ _ _ ______ ______ _
178,467 419 (11,750) - 9,050 176,186
============= ============= ============= =========== =========== =============
2019 comparatives Balance Movement in resources Reval’n Balance
1 Dec Incoming Outgoing Transfer 30 Nov
2018 2019
£ £ £ £ £ £
Lyne Legacy Fund 96,377 205 (1,300) - 10,794 106,076
Salisbury Legacy Fund 63,623 69 - - 8,699 72,391
_ _ _ ______ ______ _
160,000 274 (1,300) - 19,493 178,467
============= ============= ============= =========== =========== =============

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

12. Designated funds (continued)

The Lyne Legacy Fund is currently set aside to support the Cathedral’s organs. £1,300 was used in the prior year to fund the residual costs associated with the purchase of a new rehearsal organ for the Cathedral’s Song School.

The Salisbury Legacy Fund was part used to fund new pianos for the Cathedral in 2016. A further £11,750 of the fund was used in the year to provide funding towards the costs of microphones and livestreaming equipment to enable music to be maintained as an integral part of the Cathedral’s online worship. A grant of £50,000 has been set aside from this fund to help fund improved facilities for the Cathedral’s Song School, including new choir stalls, a modification to the new rehearsal organ and the purchase of a new rehearsal piano. It is anticipated the majority of this grant will be applied over the following couple of years. The remainder of the fund is currently set aside to support any further costs associated with the Cathedral’s Song School or other music-related costs the trustees consider have a sufficient degree of permanence about them.

13. Analysis of net assets between funds

2020 Unrestricted Designated Restricted Endowment
Funds Funds Funds Funds Total
2020 2020 2020 2020 2020
£ £ £ £ £
Investments - 111,044 86,763 2,590,667 2,788,474
Debtors 80 - - - 80
Short term cash deposit investments
30,908		 64,142 59,185 - 154,235
Cash at bank 10,945 1,000 - - 11,945
Creditors - - - - -
__ __ __ ___ ___
Total net assets 41,933 176,186 145,948 2,590,667 2,954,734
============== ============== ============== ================ =================
2019 comparatives Unrestricted Designated Restricted Endowment
Funds Funds Funds Funds Total
2019 2019 2019 2019 2019
£ £ £ £ £
Investments - 101,994 79,692 2,450,758 2,632,444
Debtors 9,413 - - - 9,413
Short term cash deposit investments
24,995		 77,773 58,540 - 161,308
Cash at bank 10,129 (1,300) 317 - 9,146
Creditors (1,120) - - - (1,120)
__ __ __ ___ ___
Total net assets 43,417 178,467 138,549 2,450,758 2,811,191
============== ============== ============== ================ =================

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ST ALBANS CATHEDRAL MUSIC TRUST ANNUAL REPORT 2019-20

14. Analysis of prior year comparative statement of financial activities between funds

Unrestricted Designated Restricted Endowment
Funds Funds Funds Funds Total
2019 2019 2019 2019 2019
£ £ £ £ £
Income and endowments
Donations 20,975 - 518 17,000 38,493
Legacies 8,000 - - - 8,000
Fundraising events 10,210 - - - 10,210
Charitable events 1,454 - - - 1,454
Investments 201 274 434 71,586 72,495
__ __ __ __ __
Total income 40,840 274 952 88,586 130,652
__ __ __ __ __
Expenditure
Grants for the benefit of 25,000 1,300 - 71,586 97,886
St Albans Cathedral
towards music
Cost of fundraising events 1,774 - - - 1,774
Cost of charitable events 4,511 - - - 4,511
Maintenance of Hurford Organ 123 - - - 123
Publicity, printing and postage 1,271 - - - 1,271
Sundry expenditure 209 - - - 209
Audit fee 2,520 - - - 2,520
__ __ __ __ __
Total expenditure 35,408 1,300 - 71,586 108,294
__ __ __ __ __
Net income/(expenditure) 5,432 (1,026) 952 17,000 22,358
before gains/(losses) on
investments
Net gains/(losses) on - - 19,493 10,794 263,529 293,816
investments
__ __ __ __ __
Net income/(expenditure) 5,432 18,467 11,746 280,529 316,174
and net movement in funds
Reconciliation of funds
Total funds brought forward 37,985 160,000 126,803 2,170,229 2,495,017
__ __ __ ___ ___
Total funds carried forward 43,417 178,467 138,549 2,450,758 2,811,191
============== ============== ============== =============== ===============

15. Transactions with related parties and connected entities

There have been no transactions between the Trust and related parties during the reporting period (2019: nil). Although St Albans Cathedral does not meet the definition of a related party to the Trust, the following information is provided due to the connected relationship of the two entities. The Trust made grants for the benefit of the Cathedral towards music of £103,245 (2019: £97,886) in the year. The net balance owed to/by the Trust at the end of the year is £nil (2019: owed to/by the Trust £nil).

24