FINANaAL STATEMENTS FOR ThE YEAR ENDED 31 DECEM8ER 2020 HEREFORD C A T H E D R A L PERPETUAL TRUST REGlSfERED COMPANY NVMBER: 03123592 (England & Walesl REGISTERED CMARITY NUMBER.. 1051168 THE HEREFORD CATHEDRAL PERPETUAL TRUST CONTENTS OFTHE FINANCIALSTATEMElWts FOR THE YEAR ENDED 31 DECEMBER20211 Page Chair and Chief Executive's Re 1104 Trnstees. Report 5w15 Repon of the Ind￿ndenT Audiiors 1610 18 Sthtemeni of Financial Activities 19 Balance Sheet Cash Flow Ststanenl 21 Notes to the C&sh Flow Siatemeni 22 Notes to ihe Finan¢ial Siaiemenis 2i1032 Detailed Statemeni of Financial Activities 331034 THE HEREFORD CATHEDRAL PERPETUAL TRUST CHAIR AND CHIEF EXECiJTIVE'S REPORTS FOR THE YEAR EIYDED31 DECEMBER20211 CHAIR'S REPORT This is my second report to the Governors sinL* Ecing el¢i*ed Chair of tbe Hereford catheth￿ PU￿al Tntst (' TTU5t'). wh￿ I wrote my l*st year. the UK Covid-19 lo¢kdoiYn ivas in progres& I failed io predict that: a year later, a third lockdoiyn ivould be in place. The ivorld conunues io enduTe a terrible ordeal in lives lo￿ and ruined. The pwspect of a return to whai is described &$ a ntty normal has appeared on the horizon as the VA¢cine programme Iv115 out bul uncertainty still rule5 our lives. We have all been forced io find neiv w4ys ofiivin8 and be innovaiive. We look fonyard io bting able to s￿la]iSt win. It is $0 ccntrnl to the Church aThJ the Trust does bui tt ivill take SOTne time for us ail to rel￿. Our Cathedral has noi escaped and nothin8 has been kne￿ it." Ik)i%ev¢r. it has risen to ihe o¢ca5ion rnagnificenily. usin8 communications technology to the full io Provide spiritual sustenance to a 14'ider audience than eveT befoTe. Thc rinancial outlook i￿S dire but a combination of Governmcnt and 8rant-making b￿tle& in¢luding ihe Tnjm. has enablEd li ¢0 survive 2020. 2021 Continues ￿ be a Ch￿]enge. The core purpose of the Tru￿. as sei out in more detail on pa8e 5: is 10 ¢orttinue lo build a Capital fund. (a quasi- endoivmeni fund but ii'iihoui the Testriciions of a Irue end0￿￿ent). is invested to wduce in¢om< after the Trust, costs to rnake gr￿ts to the Chswff of Hereford Cathcdral (W. Altknugh the Tn￿.$ ¢haritsble objeciives Specifically reler lo Ihe maintenance of the choral tradiiion of the Cathedral: much of the 8fdni is unresirictrd and can be Used b). ChapteT 85 needed. Thc granl 15 suppletnented by n¢t income from event& b) annual fur¥J-raisin8 run b} the 'rrust and otheT Iriitiativts. The Trust has had a &ood year. ir￿reasing its net &ssets from £4253.935 w £5282.964. The folloiiing ￿ble Sets out the hi8h-level breakdoiin ofihe financial performance. UnrestTi¢ted Restriaed Project Total Lcga¢i¢s Don81ions Oiher income Grants Iniesiment IrKome To¢#1 In¢omt 22.000 196,662 I l.(K15 5.033 136.482 371.182 20,024 108.883 10.397 69.5 30.695 239.499 42.024 305.545 21,402 648.723 167.177 574,190 I,184￿71 S74.190 endiiu Grant5 10 Chap¢¢r Administrative costs To¢41 ¢xptnditM 102.(K)O 142.649 244N9 201.128 2.091 203319 674.190 977.318 144,740 674,190 1,122,058 Capital infloiv Unrealised gainslllossesl Toi41 ¢aplt•l rnov¢rn¢nt Fund transfer tor project 816.i71 104.406 828.371 137.845 33.439 920377 96&2l6 16401 199.360) ILK).( Tot*l Movemtnt 81 29 NAV 1° Jan 2020 3.484,039 769.896 4253.935 NAV 3IM Dec 2020 4.530. 752.055 THE HEREFORDCATHEDRAL PERPETUAL TRUST CHAIR AND CHIEF EXEcirrivE'S REPORTS ICONTINUEDI FOR THE YEAR ENDEDJI DECEMBER 20211 Eienis in 2020 hai'e noi been abl¢ ts) tske pla¢¢ ivhicb has Lxen sad both finan¢ially and in th¢ loss ofihe jov Ihai th¢> bring. fhr lirsi hall- lit. 2021 1(M)ks sirnilar. We are ver) Braielul 10 all iiho gile 10 ihe Trusi. both ￿ the Incomc and Capital funds. and lic rcrncmi￿r iiiih graiiiude those ii.ho hai e leli 8enerou5 legacies. We l4r1con￿ th￿t ncii" TrU￿ec￿. Tania Hudson. Julia Budd ar￿ Andrcii Piw. "rania 18 the Finanee Dirtcior and IntCTiTll Chief Excculile of Ihc I lai fLs1ival. Shc is a felloii of ihe Chartercd Inslilute of ManagemLllt Accouniani% and a qualified teacher of Mathematics. She ha5 mani" lears ofeN)xricnce in scnior linance Toles acros5 Ihr cotnTDercial and noi-for-prnfil se￿0[5 1K1￿ling fiTrdncL Dirccior of SCO￿ and Hisioiic Ro)al Palaces. She is al.$0 a Trustee ot'ihL l.iLile Princ¢55"fw51. Julia ¢o-lounded the ¢¥ccutiiC 5car¢h compani. Zigos Partncr5hTP. ii.hich lias bought bi Russell Rcynold5 iihcTC She 0¥1 1i4)rk& Sh¢ is ChaiT l)I- Lp5Vtn Doiins Racecourse and a15u Chair of The Briii5h Racing ￿h0O1. Julia Irccntl tini5hed hcr stini as depLlli ￿nIOr skliard or-rhe Jocke) Lltsb. She is a"I"nLStee ora number ot-chaTilies. Ilndreii is ihe Prccentor ol- Flercford C4Lihcdral and. lolloiiing his appoinimenL as Aaing Dean. is senin8 lirtue or hi.s ollice as a Trustee ofihe'fru81. unlil ih¢ ncii Dean tsk¢5 Otfic¢. Wc sa! 8oodbwe and thank You lo tiio Trusiees. Michael Tai inoraThJ Andreii Wl'nn. .Michacl Tavinor reiired D¢an. Micha¢l b¢¢ame Dean 500rt after ihe Twsi esiablished and has been a ler¥ 11n￿l[la￿l inlluence in the dciclopmcnL 0t-thc.fnj￿. We thank him lor his 8reai coniribuiion io ihe I'rusi. Ilie Cathedrdl and the Dio¢e5e. Andieii" W>nn has bttn inTrolied in d number of.fmsi iniiiaii%¢s. 11¢ ￿ntInUeS LO bring his 8r¢ai experi¢￿e. &1 a ui.al oftira- armj Ihen a buT5ar. lo thc Financr. ALKlii and Risk. commiiiee of Chapcr. Oi¢r5hadoiiing the )eaT ilas ihe deaih ol. Lrica Manl¢)". Erica has been &s much parn of the Trust a5 G51 n oier £ilmost liient% year5. We rni55 her ¢rKTrrnK>u51). Glyn h&5 iiork'ed ivith Erica loriiitnLI' yearsso li is ri8hL ihai Glyn should horM)ur Erica's contribulion. In the Chief Executive'5 Tewjrt which immthly follow4 Glyn Mor8￿ 8iV¢s further detsil of whal wos a¢hi¢ved in ?020 artd <.￿￿¢¢0110￿$ for 2021 and k)"ond. Hi5 rc]xKt 5rarts iiith a iribuie 10 Eric& Nat I lone tx Chair ol'Trusitts THE HEREFORD CATHEDRAL PERPETUAL TRUST CHAIRAND CHIEF EXECUTIVE'S REPORTS{CONTINU£D> FOR THE YEAR ENDED3I DECEMBER21120 CHIEF EXECUTIVE'S REPORT While 2020 may have opcned optimistically it was to be a year of challet)8¢ and s*Jnc5s despile its successes. The most $18nificant ofthes¢ iyas lh¢ Ikaih ofErtca Manley. h￿1 been the Tru5t'5 much-loved events ¢OOTdinator for almost tiirnt>' yvdrs. Durin8 her time ii'ith ihe Trust she had led: deyeloped and organised num¢rous ¢v¢nis ai the Cathedral. in Herefordshire and in London. as iitll as bein8 part of the 2014 Magna Carta iour io Housion, Texas. She vill be greatly missed by all. not letsl her collea8ues and those she Work'ed ivith over the year5. We have bttn iouched by the many donations in her memory Ihi the TnLX has receii'¢d. May sh¢ re￿ in peace and rise in 810ry. Covid-19 obviously dominated iht year and little did Mr know. at the ￿art of 2020 holy OTganisations ivould have io adapt. flex and refocus on the changed ¢ondi¢ions. whil¢ tying ¢0 rnrtt their tinancial commitments. We have largely been able io do this ii'iihihe supportof the Tre2sllr)' through lis furEough system and emeT8ency 8fdnts from Herefordshire Council. the Depanment 0rDagi￿1. Culture. Mediaand SportlAJts Council England and the Cathedral Musi¢ Trust. Marty Tru5t5 and individua15 wrre also able io #ep foThith i¥ith addilional 5UPPOTL for ivhich li'e are graieful. as it ¢nabled us io meet our reirnue and rapital 8fdnis io Chapter witlwut too 3igThifiwt an impxt on the Tru5t'5 Capiial Fund. The resioraiion and conservation of the eastern range of the Colle8e of Vicars Choral ii*s a project ivhich sccured National Lotter). H￿ltage Fund IfornKrly the Heritage Lottery Fund} and oiher suppm in 2019. The matched funding packag¢ in¢luded an important ¢oniributiofi of £l(K>.(K)O from the Trust's Capital FUNI. The iiork ivas larg¢ly completed during 2020. F¢y the TrusL ¢his prin¢ip4lly involved reporting to. ne8oiiaiions iviih. and th¢ submission ot ¢laim5 10 the National Lottery Herila8e Fund and other fund¢rs as appropri•e. As part oftht PTOjeCI: ji Iva5 POS5ible to incorporate the addition ol-iivo public toil￿5. one iviih disabled provision. improvirjg boih Chapter's safeguardin8 proto¢ols and also general tacilities in the cloisttr A5 the Eastern range of the cloisters a150 include5 the Choir House. the projeci has Considerably increased the provision of facilities for the choristers. Various re¢ording& made during Ihe yedr and from the ar¢hi%'es, brought Tnuch pleasure to many artd si8nifi¢anil)" increased the Cathedral's ottline rc&ch. A key elemenL ofihe cloister projeci the ollirea¢h 8nd learning elements of the programme. largely run by Sai?h Hollingdale. the proj¢¢l'5 Artivity Officer and Ch3pt¢r'$ Acc¢ssibility Ambass*&)r. Deliver) of the planned programme iva5 inevitabl>' compromised bui usin8 oiher media and imaginaiiic programmes. Sarah ￿111 achieved alrnosi all ol'ih¢ outcomes. Sarnh left the Cathedr&l at the end of the project and lie iyish her %i'ell with her fviure career. Ai Ihe siart of the year. Hannah M¢Sherry left ihe Trust to Move to a neil. posiiion ivith Her¢fordshire Council though 5h¢ conlirtued. on & frttlanre ba515, Ylltil mid-summer a5 the reportin8 OtTicer 10 the Loii¢r)'. We re¢oTd our graietul thanks to h¢r for her ¢ommiim¢nL and ddi¢ation ￿ the Trus¢, ￿th a5 a 5thff member and in her later rolt. Ail?). from labric projEC15. Ihe Trust h&s continued to build irs Capital Fun(L iithich will provide a 5ecuiE lon8-ierm financial income lor Ihc Trust and. through ii. Chapter. The benefiis ofa s¢ture in¢ome stream. aiiay from a depend¢nc) on congregation, pi18rim and (ouri5t irKome has bcen highli8hied oi'er ihe PSL year and has been held up a5 a naiional exemplar. Durin8 the year and early into 2021 the Capiial Fund has been significantl). enhanced b). a number of legacies. and through 2 loan of the Magna Carti The kth)i%,led8t ofthe projected incrc35ed income from the invesiments has enabled ¢h¢ Trusi to commit to its 2021 revenue grants io Chapter. ii'hi¢h alloii.ed Chapter in turn to confirm its siatus as a going concern. Si8nificani ii'ork and focus remainin8 on building ihe Capi181 Fund as a stture financial b&se iiill remoi'e the uncert¥ini)i ihai, Ihrou8h its Braft￿ Chapter has h*1 for man), decade& if not centUTie Thc Trust has indicated that it is likel). to bc ablt io rnake revenue 8rants of £288,(MX> plus 2ddi¢ional grants of£50.(K)O lunresiTiciedl aT¥J £45.(M)) (Deaner). li'OTksl for the COTning year 120211 The eore revenue grartls of £288,000 haye increased b), 50% over ihe past five yea]s. THE HEREFORDCATHEDRAL PERPETUAL TRUST CHAIR AND CHIEF EXEcirrivE'S REPORTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER2020 During Ihe year ihe T￿￿¢¢¢5 ivere pleased io have been able io Inc￿95¢ support for ihe education work of Chapter. A focus iiill be given as to how a5eparate Capital might be Created w support the ¢urreM core a¢iiviiy ofih¢ educalion dep8rtmenL Glyn Morgan MBE Chtel'Ex¢¢uiive THE HEREFORD CATHEDRAL PERPETUAL TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES, REPORT The Trustee5. ivho are a150 DirtctOT5 of the charit), for the purposes of ihr Companies Aci 2(M)6, P￿sen( Iheii Jrport with Ihe financial staiemenls of the charity for the year ended 31 tkcember 202D. The TTusltts hai'e adopted Lhe prO￿i$l0ns of A¢eouniing ond R¢ponin8 by Charitie5.' Statement of Recommended Prdcii¢e applicable to eharilies preparing their accounts tn accordance Iwth the Financial Reporring Slandard applicable in the UK and R¢public of Ircland IFRS 1021 (second edition. issued in Ociobtr 2019). he Trust" throu8houtthi5 reixjrt ref¢rsto the H¢r¢ford Cothth PerFtual Trust Ixin8 both a r¢gist¢wJ wmpany and regisiered ¢haTily. ii'hose affaiTS for ihe year ending JI December 2020 is the subject of thi5 report. The Trusi is regi#ered wilh the Fundraising Regulaior and is a corwrate member ofthe Instilul¢ of Fundraisin8. The ChiefExecuiive is also a member of the In#i¢uie. CHARITABLEOBJECTIVES The obj¢¢i for thich the Tnjst ivas esthblished is sd out in clause 3 of Memordndum of Association. Clause 3 read5 a5 tolloiv5 Isornt pur￿l￿allOn added for clariiyl: The objed for ivhich the TTUSI is ethbli5hed is to Promote the religious a￿j ch8ritsble i¥ork of the Church ol'En8land by providing support for 011 or any of ihe ¢haritable purposes io which ihe capiiular w¢nthes of the Chapter of the Caihedral Church of the Blessed Vir8in Mary and St Ethelbat in Hweford {*he Cathe&￿￿ are applicable in¢ludirtg especially.. 3.1 The promoiion and maintenance to a high stsndgrd of ¢hoTal seryices of ihe Church of Engl8nd in ihe Caihedrdl Iivhether simple or elaboraiel in such %fdyS as the Board of Govemors irk its ab501uic discreiion Lhink fit irt¢luding (but ivithout prejudice lo the 8enerality of the fore80in81' promoiioth of Teligious: rnu5ical and secular ¢du¢aiion of pupils attendin8 any school in which the d￿tri￿5 of the Churth of EnglaDd 15 8ii'en and pei'forniance ol. Lhe choral servi¢es of the Church ot-England 15 observed. and also Ihe npair. Mail)￿n81)ce and jtnci￿I of the organs ol-the Caihedral. the acquisition and rnaintenance of i15 musical b¢M)ks and manusrripts- and the emplo)'meni of all staff including lay ¢lerks, in ¢onnection iyiih the chordl 5er¥iees ofthe Cathedrnl; and 3.2 Th¢ pr¢5¢rvaLion, mainiet)8n¢e and d¢velopmen¢ ofthe Cathedral 8enerally. The Board h&% agreed the folloiving more dttailed d¢fJniiion of ed￿tIon object set out in the MemoraNlum or A550cialion'. ro support the ¢ducatioThal and jnlerpr¢i￿i0ft&1 I￿rkOf thecathedral amongsi peoplcof all a8￿ in all wrasofits mission and ministry, usin8 th¢ Jrsour¢es of th¢ %Yhol¢ Ca¢h¢dral Foundaiion. This would include. bui not exclusively. ivork M'iih scknls. colleges and uThiYetsilie5' adult education. Sunday School. individuals. family group5. VISLtors and pi18rim& creatin8 access and opportuni¢ies in the Librdry and ATchives and ass0¢iaied exhibilion- providing inierpretative tnalerials in promotin8 the Cath¢dr81 and ils tnission,. and relaiin& Chrisiianily 10 ¢Olllrmp)rar)' so¢iety. THE HEREFORD CATHEDRAL PERPETUAL TRUST TRUSTEES, REPORT (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER21120 OPERATIONS The Tru51 fulfils its charilablc objeclivc by the provision orrwiding and seryices io the Cathedral Chapt¢T. The Cathed¢al Chapter is the legal enli¢y and also its group of the equival¢ni of Trullee& ihat and are responsible for the Cathedr81 And a$s￿lated ptoperti&s. Their charitable objective is io pr¢Klairn the G05PEI of Chrisi in th¢ City dnd Diocese of H¢r¢ford and in the iyider ivorjd: by serving and irw>iring atl those 1*1￿ ¢n¢owiter the Cathedrdl and it5 community. The Trust proiide5 fiJrHlin8 and 5eTvi¢es irt the folloiving ways: The TruM is buildin8 a lon8-ierm inve51ment fund (the Yapitsl FuThf. y￿ended io owate a qua5i.endoivrnenti ¢he income frorn ivhich wll proi'ide a *able income LO the Tnjst. This ivill coniribuie to a revenue Surplus tha¢ can bc granied lo the Cathedral Chapier. Additions ￿ the lortg-ierm inve&meni fund come mainly from legacies hnd gifts. Th¢ Tijjsi oper8Le5 a policy of takin8 the first £IO.O(M> of any legacy a5 m'enue aTrJ adding the reg io ihe Capitsl Fund unles5 Ihc donor has specified oiher%vi5e. The Trusi is very gtaieful to the re8ulardonor& li seeks 108roi4 Lhe number of donors ensure th•L donors are prO￿rIY informed on knii. their donalion 15 used and feel part of tht Cathedral Commurtily. TheTru5t holds • number of evertts in thrd¢r it) morty for th¢ ￿VenUe xcount. It also provides assis¢an¢¢ io Chapi¢r loi its own fundrwsin& The Trust prov¥dc5 a 5crvicc to Chapier by leading on fundraising artd 8raTht applications for a i%ide varieiy of Ca¢hedral capitavfabric project& The Tn]st Is not responsible for the execution of fabric projeeLS. Building contrdcts are en*red inio bj Chapter. The Trust Is respon5iblc for fulfilling the requirements ol. the funders of tk Project: particularly the NationY41 Lotiery Heritage Fund. The Tru# also helps lo raise ihe profilt of the c￿h¢drI] and its iwrks to ihe wider communily. IM>th nationally and iniemalionall). As a result. Hereford Cathedral has supporters all arts￿d ihe ii'orld. The Trust or8ani5eS th¢ use of its assets. sEKh its rna8nificcn¢ ¢hoir and its 1217 Magna Cart& on visits th￿ klp Tai5e funds both direc¢ly and as a result of raising the profile, for th¢ Trwi and Chapt￿. The Trust provides othcT a551Stance to ChaplEr including 5UPPOrting projtti devtlopmtnt. crafting Projects SLlltable for e.¥ternal funding and in promoiing Chapttt's 8cliviti¢5 prn8rnmmes through Owl of ihe Clolsiffi's. The Tn]si continues 10 maIn￿1n Close relaiions Ii'iih other eaihedral& naLional bodies involved in ihe management of cathedrals. heritsge or88nisa¢ions. Governn￿Thu Whii¢haJl and various Royal HO￿e￿O]d$. The TTUSI in [￿rtnership iiiih Chapter agrees an annual funding plan. Thi5 hncludcs revenue support of ihe c￿)raI Fourtdation and EducaLion Departmeni. alon8 M'lth unrt5tricted funding ith supp(rt of swff ond core rei'enue costs. iiiih th¢ goal of maintainin8 if noi increasing this support in the fuiure. Fundin8 copital projects (which may pfiss through the Trwt's ￿￿nI or m#y be paid dire¢dy ￿ CW d¢￿dIn8 on the donor) is ortly confirmed i%h¢n ihe full fundin8 pxka8e is secured. or ai leau for g defit)abl¢ phase. Some 8ranis. particularly those associated ivith ihc Nalional Lotlery Heritag¢ l-und. also tontain lar8e amounts of educational ivork. -rhe Trust also fTnds funding for Caihedral events. In 8eneTal. thesc iwll be smaller sums {l¢ss than £IO.(M>O} and the entire sum. other Lhan ¢learly id¢niifJable costs. is Pa55ed onto Chapier. Such a ¢ase is th¢ 8rant from ihe W A Cadbury Chariiablc Tru51 in suP￿rt of the annual Holy Week perfomiartee of or* of J S Bach'5 Pa55iOn5. though in 2021 ihis indepen¢kni grdn¢ ivas in¢orp)raied inio the main ¢horal grani with an cxpectslion ora Holy Wttk 2021 perlormanc¢ or an appropriaie variolion d¢p¢nding on the ih¢n re8ulalion THE HEREFORD CA THEDRAL PERPETUAL TRUST TRVSTEES, REPORT (coKllNUED) FOR THE YEAR ENDED31 DECEMBER2020 POLICIES lrtv¢stm¢Trl The 'ln]stee5 have ii4de powers of invem¢nL Siwc 1998. the Trust's iniestm¢n¢S have been rnana8ed by Cazenove Capital. a ITading arni of Schroder & Co. Limiied. on a discretionar) basi5. Rather than runnin8 a discrete portlolio of direcily held init51ments. the Tn￿lee$ agreed iyiih Cazenove thai the funds slM)uld be ini'ested in co-mingled funds managed by Cazenoir suitable for chariiies and h¢ld for the long term. The Trusi iniwred in ii¥o such funds during the financial >ear-. The Cazenove Charii!. Multi-Assd Fund ICMAF).- estsbli5hed in 1998. 'Ihe Cazenoir Responsibl¢ Mulii-A5set Fund IRMAF}-. opened in February 2020. CMAF aims w provide in¢ome and capitsl gromqh in exces5 of the Con5umcr Price Index * 4YD per annum Inei of tce51 over rolling ten-year periods. CMAF is desigr)ed specifically for charities ii'ith ¢ommensuraie Ethical, So¢ial and Governance policies IESG) and 15 auihorised and approved by iK)th the ChariLy Commission and the Financial Condu¢i Auihoriiy. "rhe Fund had ai year end a diversified portfolio of ¢ir¢è 31 underlyin8 Managed Fun¢ts: boih by Schroders and third parties. with 8 70% equity exposure and 30% mix of boThJi property- diversitiets and tash. RMAF also aim5 10 provide in¢ome and capi￿] groiyth in exc¢ss of th¢ Consumer Price Indcx 44yD per annum {nel ot. fees) over rollin8 ten-ytar peri￿lS folloiwng a simil4r investment Mrdie8y io CMAF but i%iih even 51ricier ESG poli¢ies. RMAF 15 also designed sp¢cifi¢allJ for ¢hari¢ies and is authoTised and approved by the Ch4rit)' Cornrnission. The Fund currently has exposure 10 23 underlyin8 holdings. The Furtd has an explicit responsible inv¢s¢ment policy. iyith screening aligned with cornmon chariiy eoncerns and environmen￿. social and govemanee analysi& engagement and i'oiing embedded ittlo tk equity invc51ment pr¢Jc Cash aiYaiiin8 disbursemeni for major projects is held in a number of imeresL-b¢aring bank accounts or in a suitsble ¢a$h lund. a5 appropriat¢. normguy with the Chwch ofEnglaThl'$ Ctntrdl Board of Fin8n¢e. Cazenoi'e Capitsl and Schroder5 haw¢ a dedicated attd iyell-rcsourced responsible inve$im¢ni leam. They have aehiev¢d an A+ iztin8 trom Ihe UN Principles for Responsible Investment IPRI) in each ofthe last fil c )'eaT5. Schmders are a spe¢ial adviseT to the Carbon Disclosure Project.. a foundin8 memberof the in5tituiional ini'c510r8roupon cliTnaie chan8C.' a m¢mb¢T of the UK Sustainable Inve5trneni armi Finance Asso¢iaiior) and the European sU￿aInable Investmtnl Forum. All invesimen¢s in companies made bv Cazenove on behall'of ihe Hereford CatlKdral Pewal Tntsi are siibjeci 10 iheir rigorous Tesponsible invesimeni and COr￿ra1¢ 8overnance polici¢s. Boih academic research and our omrt eNperienL¢ shoiv thai strong ESG managemeni often delivers Superior lon84cmi r￿urnS. Th¢ appTaisal ot ESG faciors is iniegrated tn our 5to¢k and fund sel¢¢¢ion pro¢¢s& Cazenove'3 corwrdte 8ovenwK¢ aTrJ rwbl¢ InveSth￿nI fimctloT￿ have been exist¢tKe since 1998. A dediLaied section of their ivebsiie sets out related policie& voting records, researth rtp)ns and responsible investment rei iei%s. Foi. lurther information on responsible invesimeni. please 80 10.. https'./liviw.s¢hrodeTS.¢omlenlsustainabiliiylcoTW)raLe-responsibilii},l. Foi. more inforn)aiion on ihe RMAF. please go to.. h IliTrAiiTr cazenov 'eslour-fundW. The TTU51ees moniior lon8-iem perf0m￿n¢t ¢aff fully. Ai It￿ once a year. representaiii'es of ihe Trustees med i¥ith the advisers along with representatives of the Mappa Mundi Trust. i%tho a150 use Cazenowe Capitol and ivith Chapter. vho are also tNstce5 of tWK> Other charitie& and th¢ir sep8raie advisers. RepTe5entstives of the diotesan investmcnt ¢ommitie¢ 8re also invited a5 are Trust TeprtsenlaiLI.es to ihe dioeese rebieiv meeiing. This enables TnJsi¢es to ￿wIt11 the perlorman¢e ofi¢S inv¢sim¢nts ¢otnpar¢d io other hnv¢51ment managers. In early 2021 the CMAF transferred io th¢ RMAF in ivhole. due to the 1&t￿ fi￿d.￿ improved performllnce and eyen 5trongei' ECG policies. THE HEREFORD CATHEDRAL PERPETUAL TRUST TRUSTELS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 211211 POLICIES (CONTINUED) Publi¢ b¢neni As a charity regisiercd in Englond 8t￿ Wales. the Trust reports in accordanc¢ iyith ih¢ Charity Commission for England and Wales. guidarKe on publi¢ benefii and thc Charities Act 2011. The Trusi has continu¢d to iyork dosely ivith Chaptrr and fundin8 has bccTh proviikd to support the Choral Foundation, educational iiDTk of Chapter 2nd a numlKr of fthic projects. All the proj¢¢15 have included the en8og¢nxni of ihe 8eneral public. as ￿11 as helpin8 10 proiect our shared heritagc. Volunteer5 When regulations alloii.. the Tntst uses volunteers in ivays. Members of ihe Truste¢ body provide 5117lcgic. manageTnenL financial and other expertise. joined by other memkn ofihc Board ofGov¢mors and co-opted individua15 in ditler¢nl a￿a$ ofih¢ Trust's iwrk. A i¥ider base of Yolunte¢r5 ￿1p$ ￿'11h various lundraising event5. Pack-IT. a social enicrprise OT8ani5ation. gJptM)rt5 Us in th¢ di51ribulion ofn¢%ssleuersand ￿ arc delightrd to work iyi¢h ihis organisaiion. Lhough sadl) this Could ortly tak¢ plac¢ on one occasion in 2020. Fundr845bll¢ The charsty fundraLse5 primarily through inSi1l￿10￿& and foundations togdher wilh evertt-ba￿ fundrdisin8 and Some indivtduaI donaiions. The chariiy does noi en8age in cold vulncrable donor5 anij in ihe small rtumber ofcases ivhere thi5 15 wplicable li does so Ihrough their familie5. Th¢ Tiwsi is registcred ivith ihe Fundraising R¢gula￿r is a tO4x)ratr member of In51itut¢ of Furtdraisin8. The ChiefExecutiie 15 al50 a member of the Insiitule. L¢¢Acies Sui)jeci 10 an) speciftc Ivishes connected iviih a iwuc5L lh¢ first £IO:(M)O of any legacy iTrill be relained in order to meet th¢ costs ol-runnin8 the legacy pro8ramme and in rneeiing any immediate finarKial needs. The ba]aNe %¥ill be invested in the Capital Fund under ¢he guidatte ofihe Ini'eMmeni ManageT5 in consultsiion the Trusttts. Any le8al reAriction on a bequest ivill b¢ Tr*)nourrd. alLhou8h sh￿Id there be concern over the natur¢ or ihe extent of the Itstriction ar¥J iyhether the Tnjst can honour ihe Co￿11110ns. this will be clarified ivith the Exe¢uiors before the gift is deposited. In the event of a bein8 received ivith conditions laid out in a Laier of Wi.the& this 14111 be honoured as far as possibl¢ by the Tru51ees. Ihe ExECUtOTS kepi infornwi. The l¢ga¢)' programme manages the relationship i%ryih Wential benefactoTh apwpri8￿ professiona15 &nd the Executors and families ofth05e iryJividu8J$ from iyhom li'e hai'e ￿¢¢iVed b4u¢sl& The ChiefEN¢culiv¢ 15 a m¢￿bE1 of the Church HOL￿¢ Good Lc8acy Practice Group, i%hich provides polic). best prdctice advicc. Iheological thinkin8 and practical support to diocesan fvrhding oifieers thc Church in gcncroJ. The gr(pup of dozen mcmbcr5 meet$ up to three times each year. I"he Tnjll holds iotal funds of £5.3m. of ivhich £0.8m are r¢stTi¢ted for specific purrrfbscs whereas the balance of£4.Sm is both unresiricicd and lar8cly held in investments i%thich are relatively liquid. The policy ol'the"I rus￿eS isio build up a Capilal Fund I4￿1￿ a vieii. LO (he Fund providiTr8 an increasing amouni of ff liable income ovcr ihe lon8 ierm. The Trustets have designated ¢he iDvesi¢d UnTeMricicd funds to Tefl¢d this inteniion Th¢ balance ofthc unrestricted funds repr¢￿ts Op￿tional thrykin8 C4Pital. Th¢ Trusiees are Con￿nI i%"ith the Fund p051tion and the dcsign2ted Fund is held irb relatively liquid invesiments hetKe could be called upon in the event of ar)y short4emi ffdLLrtion in ivorkin8 capLuI. For that Teason. the TfU5t¢¢s consider a small UnTestri¢ied working upi(al balance io ￿ adequate. THE HEREFORD CATHEDRAL PERPETUAL TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED31 DECEMBER 2020 ACHIEVEMENT AND PERFORMANCE Reserves It should be noted that the net current as5ei position at 31 December 2020 in¢ludd ￿¢rUed le8acies of £699,ilXI. Ikgacies A ioial of£870.395 Il'as recognised in the fortn of It8acic5: of which £828.37] Ivas added tts ihe Capital Fund and £42,024 was ¢aken to the revenue accounL A total of £654,iOO receivcd after the year end and appear5 as a debior ai }'ear end. The Tru# is very graieful to have the followin8 le8acies frnm the folloiknng ¢staies- The late Mr Philip Havelock. also a¢knowlcd8ing rhe commiimeni of Mrs Alii)'nt Havelock. hi5 late il'ife m.ho had pred¢¢eased him. An ioitial pa)Tnenl Ttceii ed in 2019 iiqth the final payments being received during 2020 (choral resirietedl. The late Michael H￿chI50n. also acknoi¥l¢dging the commitmem of tk latr MTS Sheila Hulchison. itho had predeccased him. An initial interirn pa)meni re¢eii'ed in e8rly 2020: ivas accounied for in the 2019 x¢ounls ii'ith the fjnal disiribution bein8 received later in (he year and included in these accounts. The gifl i%as UnTe$tri¢ied. A gift i435 made ihrou8h a variation of Ihe Will ofihe late David Gilliai by Ihe Executors. The wtl il'as io support ol'the Choral Foundation. Th¢ tolloiving gifts i¥er¢ re¢eii'ed in 2021 bul are recogn15cd in the 2020 xcounts due io accounting guideline5. In all cases. the gifts lisied will hav¢ be¢n re¢¢iv¢d betort the a¢¢ounts are adop￿1 aThd Iherefore the sums aTe factually correct. The late Simon Kenyon-Slan¢y. A specific gifi. An unrestricted gift. The late Gladys Rendell. A Share of the residual esiatr. An unrtStri¢ted EifL The late Mabel Elli& A third inkrim pa%'meni. The gifi is unrexriaed. The late Molly Johnston. Thegift ivas made in sUP￿rt ofthe'bDy$' ¢trK*irand S￿l4T$.. the ithole 8ift r¢iain¢d in the revenue a¢¢ounL In orderto honouT both Ihe spirit of the 8ift and ihe policy. a tr3nsfeT to the rtstricied ehoral rund ai Cazenoit ii#s made in her name. Substartti81 gifts A 8enerous 8ift iva5 received from the Austin Communiiy Foundation from a number of triend5 in Austin. Texa5 artd associated ivith the Cornmunity FoundatiorL Jnve5tment performance Thern￿k￿ valueofiheTrust'$ investmentp)rtfolio (Lncluding cash held for Énvesimertll ai 31 tk¢embtr 2020 amounted 10 £4.303.756 12019.. £4.079.414). The TnL8t's investment p)rtfolio split betwyen £2.846.065 held in the CMAF portfolio and £1.386.803 in the RMAF portfolio as at 31 D¢¢ember 2020. £70.887 of iivs also held. For all of 2020's turmoil. incl￿j1n8 the f&￿t* ¢Yer Yyear mark#- and th¢ fastest subscquent recovery in 40 year5. 2020 proved a good year for equltics. ￿ least outside Europe. This iyas I￿￿kS in large part io ihe siiryft interventions trom Leniral banks and govemments following the onset of Ihe pandernic. a5 Ivell as ihe promising iiattitie ne1+5 thai arrii'ed in November. The CMAF portfolio reLurned 7.0% and the RMAF portfolio returned 8.6% T*t of fee5 ithich conir8Sts i%'iih the inflation plus 4% tsr8¢t of +4.3%. and 8loba] and UK ¢quiiy markei relums of +12.9% and -9.8% respeaivel),. The total portfolio gencrated £166.31812019.. £141.3081 in incorne over ihe lasl 12 mottths: £114.35412019.. £111.5611 Irom CMAF and £51.964 12019.. £29,747) from RMAF. In Noirmber 2020 it was agreed. ai Ihe stsrt of ihe neiv fjnancial year. to move the CMAF holdin8 inio the RMAF due ¢0 lis margTnally better peTformart¢e and explicit r£s￿nSiblE iniestmenl policy. THE HEREFORD CATHEDRAL PERPETUAL TRUST TRUSTEES, REPORT (CONTINUED WOR THE YEAR ENDED JI DECEMBER20211 ACHIEVEMENT AND PERFORMANCE ICONTINUEDI sIg￿lfie9￿t Il-kind support Due to ihe Covid-19 re51riclion5. neither of the evEnlS norniall)" supported by Cotsiyold BMW and Mini Hereford were Possible. though their conlinued commiimeot to the Tnsi is gTaiefull> ackno%vled8ed. FINANCIAL REVIEW Deiatls ofthe financi81 perfornance and financial position of the Trust are set out in ihe following accounts on pages 19 10 34. ror ihc y¢ar ¢nd¢d 31 D¢c¢mb¢r 2020. income arN>unied io £1.029.029 {2019= £254.653}. Granis 8mouniin8 lo £977.3 1812019.. £744.9531 Ivere made durin8 ihe )"ear. In 2020 theTrpJ5t's gr055 inwme ivas £2,013242 (2019= £967.3521. includin8 le8acics of £870.395 {2019..£166.5001. l..Npenditure for the year ilas £1.122.058120I9.. £996.4601. ibthich included grants to the ChoTal Foundaiion of £168.0(X> 12019.. £168.0(K)l and ihe Ea￿ern Range Project £674.190 (2019: £431.352). Detsils of Dther 8fdnis wthich included £102.000 toiiard general Chap*r Tunning tosts are irtclthled in nDte 7. Printlp*l fthwdlvg sourees One of the PTin¢ipal fundtrs of(￿ is ih¢ National Lolttry HeritsBe Fund io the Trust applies for grartts to 5UPPOrt proje¢is in ac¢ordan¢e iyith ils objecLi￿es. The Siatement of FinarKial Aciiviiies summarise5 the i[￿rnIng re￿￿¢¢5 2nd funds expended and ihese are analy5ed beti¥'¢¢n unrr5tricl¢d fund50nd r¢51ri¢ied fund> Restricted fLLTrJs. includin8 iht Chordl InvcsTmcnt Fund. are funds $ubj¢¢¢ to sp¢¢ifi¢ usage de¢lared by don￿$. UnTestri¢*d fvnds ar¢ ¢xpendable ai the di5crelion of the Trustees in furtherance of Ihe objeciives of the Trust. FUTURE PLANS Subject io the ¢urrenttt¥'ieii. IheTrust will ￿Thtin￿ io develop itslinks iviih supporters- I￿al. naliona] and international. It ivill ¢on¢irtue io s￿A8¢heTh its relaiionships iviih 8Tani-makin8 b￿1£5 and bring on ErfMTd neiv charitable and corporate supFx)rters. li ivill coniinue LO explore the opwttsniiies to Use the Cathcdral artcfacts to generate signifi¢ani gifts 10 its Capital Furnl. The Trust's focus will remain on: Groiving 115 capit￿ Fund held in investments ￿ pro%ide a secure long-terni income stream: Supponirtg th¢ rewenue iwm¢ ofchapter ihrnugh vaTiOU5 annual regular arwj grants. Securin8 e%teTnal funding to consenali0￿ reaorniion and major projec15: Funding its oivn struciur¢ and yaffin8. 10 THE HEREFORD CATHEDRAL PERPETUAL TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021J STRUCTUR& GOVERNANCE AND MANACEMENT Covernlng dotumeTrt The Trust is a company limited by gu8rnntee and noi havin8 anyshare Capi￿1. The Twsr ivos incorporated on 8 Novembei. 1995 as compan} number 03123592 and is re8i$iered wilh lh¢ Chariiy Commission iyith charity number 1051168. The Trust operates in accordanc¢ with its Memorandum and Articlts of As￿)ciall0[￿ as amended by %iriuen Resoluiion efte¢tiit I l June 2008 and pursuant to the ¢onsethi of ihe Charity Commi5SiOn PUT5uani to Seciion 64 Chaiiiies A¢t 1993. 11 should be noted that the 8 November 2020 %Yd5 the iiyenty-fjfth anniversary of the $ignin8 of ihe original tTU5L deed and the 15 Dccember ihe Same annIVe￿ry for the firsi offLcial meeiin8 ofthe founding trus¢ees, of iyhieh a number are still c105el) involird and to iyhom are 8ratrful for their vision a￿1 commiim¢ni. ChArlty constltutlon The maximum number of named Governor5 {members} 15 one hundred. A maximum of ei8hi 8overnors plus th¢ tkan of Hereford Ib). liirtue ofhis olYi¢el are Ihe Trnsiees. The Tftjsttts manage the business of the TrusL Indi%iduals may be iniiied b) the Trusiees io become Govemor& The Trust seeks to maintain an appropriate mix of skills and exptrienee among th¢ Trustee5: especially in ihe areas Ot. finance. business and governar￿e. combined ilith an understandin8 of ihe role and miysion of the CoihedrAI. R¢¢rultm¢nt ittd •ppolnimen¢ otntw TY•$t¢¢s 'I'rustee5 {%vho are elected by the Govemor51 are recruited from lime to time io provide the skills needed 10 maThagt the TTUSt and to broaden the netiiOTk ot-professional and peTsonaJ contact& The comwSLiion ot'ihe iNsi¢e body 1$ rewiei*ed pei'iodically. Tru51tt5 must be Go¥ernor5 (member51 of the Trust. Organi5atlonal 5tructvre The irusi is managed by a Board of TruMtt& UntLI 15 June 21M)8 certain powejs iitre delegaird to the Council ot Managemeni,. on thAt daL¢. by IiTiLten resolution of ihe M¢mb¢r& the Council of ManageTHenl ilas replaced b) th¢ Exeeuiive. i¥hose members are ihe Tru5ttts. Tht Trustees are Te5ponsible for the oytrnll ￿rategY arhd finarKiaJ commiiments of the Tnjsi and a￿ supported in this by the Chiet- Execuibve 14ho manage5 ihe da)._t￿￿aY O￿TaILon5 of the TrusL Commiiiees consisiin8 of Trustees. and co- opted individuals iyith 5prcial ¢xp¢rt15¢. arc appoinled from li￿¢ to time to adminisier speckfic areas of iYDrk on behair of the Trustees. While c￿ter'S Fina￿¢. Audii gnd Risk Commiue¢ onl}, hai'¢ a staiyiory duly io advise Chapier on its accounrs and risk. the Trust shares many of it5 documents (not Ivd51 its annual accounts and inveArneni reponsl ii'ith the Commitler SD as io help better inform the ivhole Caihedral tamily on ils financial posiiion. The Trusi is able 10 nominate one'frusiee. normalli. tk ChairtnaTL to be a member of the co￿￿lItt¢. A separate inie5tm¢nt group. led by a member of the Fijwice. Audii and Rtsk Committee. 8150 coordina￿5 an annual meeting i14ih the investTnent managers for Chapter and asso¢i8ted charities, the Mappa Mur￿1 Trust and ihe Perpetual Twsi. The Dioeesan Board of Finan¢¢ i$ 0150 intriied io auend so as ts) enable a broad vieii,. The meeting i5 held in Hereford. Approximately six monihs later. an informal meetin8 is held in London iiiih ea¢h ofihe ini'esitneni managet to maintain an aiiareness of the rhen siLuaLion. If a Significant 8ift is io be invested. such as a large lega¢). a sepaTaie meeting ma). be held. eith¢r in person or by ielephone. Regular reports. F*)Ih in prini and ele¢tronic fomi are regularly received by %wious Twstr¢5 and ihe Chief Execuiive. Indu¢ti•rt traInI￿8 of new Trnsttes An induciion and training programme Fs arranged for neiy Executive members. t8ilortd to meei iheir indii'idugl needs. It typically includes Trustee responsibililies and goveman¢e. Boveming documents. the Toles of the Tru5L 2nd Chapier: Ihe Ivoi'k ot. Ihe Caihedral. ¢yrr¢ni commiiments and fulure plank Neil. Tn]stee$ f¢lloiY Trustees and Caihedral personr)el. Key m•n4g¢m¢b)i r¢mun¢r•ilon The remuneraiion of kcy mana8efflent l5 decided by the Board OrTn￿5. THE HEREFORDCATHEDRAL PERPETUAL TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED31 DECEMBER20211 STRUCTUR& GOVERNANCE AND MANACEMENT{CONTINUED) Related partie5 The Very Revd Michael Tavinor. &s tkan of Hereford. both a Trus￿ ofihc Hcreford Caikdrdl Perpetual Trust {ex- officio) and a rnember ofchapter. He retired from the office on 28 February 2021. The Revd Canon AndTeiv Piper ivas appoinitd io the position of Acling frvrn l March 2021 until Lh¢ itt$tsllaiion of a rtew Dean. and Canon Piper Assumed the ex-officio pla¢¢ orth¢ tk•n. His conflias 14rre as ih8L of the fOrn￿r Dean. During 2020. AndTeiY Winn iyas a150 8 mcmber of aytu's FinwKe, A￿￿1 and Risk Committee in his own ri8hl not r¢presettting ihe Trust. ithi¢h 1135 done b) th¢ Chair. ringihe )¢ar. pro¢¢sses are in pia¢e all Chapware r¢¢rnlql ITh the Thi¢f Ex¢￿￿1V¢.￿rqx1rtlo T[￿e5. along iyiih identifying any payments likely io be made bcfofe ihe r￿Xt.rVJ5tcCs. m¢elin8. $0 Trust¢¢s are aHar¢ ofivhat has bccn paid to Chapter durin8 each peTiLwJ. Any payments are Conti￿￿d in advance ivh¢rcver possible. Claijns such as ihose 10 ihe National Lthiery Heritage Fund arc p&sed ihrough the T￿￿ and are forivarded to Chap¢¢r as -won a5 POS5ible and iyiih cheques often being prqjared lor the transftr ahead of receipt of thc futtd5 50 a5 10 ensure as ISLSI a transfer of tuThJs tts Chapter a5 W5sible 0￿¢ the fund5 have bcen received. Rl$k m4119g¢m¢ni 'rhe Trustees Continue to monitor the nmjor Tisks ii'hich ihe Tn]st fa¢es aThl seek to reduce thost risks. At present in this uncertain ¢¢onomi¢ ¢limaie there are risks ivith fvrhSnising. Loiicr tn¢ome from inve#menis affecis ihe Trusi and also aftects donor5 to iyhorn the"Irust applie5 for 8rdn￿ There is a risk thal the T￿￿ 15 unable to r&i5e 5uJTicient funding io meet the aspirdlions of Chapler to cover 115 01￿ running cost A majorrisk is ihe perf¢wmance of ihe Trum inyesiment ponfolioand the itKome fmm IL Commcnis on Ihis are contained in tht Financial Revieiy. 12 THE HEREFORDCATHEDPAL PERPETUAL TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 REFERENCE AND ADMINIST114TIVE DETAILS Regl$tered COmph￿Y numb¢r 03123592 IEngland & Wale51 Registered ChArily number 1051168 Principal addres5 5 Colle8e CIoi51ers Tlie C105e Hereford Hercford5hire HRI 2NG Tr￿slee5 Mr Nai Hone DL Mrs Tania Hudson Dr Michi¢l Timmerman The VeT)' Revd Michael Tavin( Mr Andreii. W)mn LVO Chair of Trnsiees Appoinied 31 Jul). 2020 Rciirtd 28 February 2021 Res18r￿d 5 December 2020 Ms Julia Budd IMTS Julia Lukasl ￿Umed her posilion as a irusiee on 19 Februar) 2021 And The Rei d Catwn Andreii Piper. as the Atting Deart. ihe ex-otricio appointrn¢nt on l March 2021. Patron IIRH The Prince ofwale5 Vlot-Pr¢sid¢nts The LoTd-Lieuienani of HerefoTdshire Imr Ediiard H8rlth OBEI The LoTd-Lieul¢nani ofshropshirE IMr5 Anna Turn¢rl The D0i14ger Countess ol-Darnle} CVO Mr Tom Davies Sir Thomas Dunne KG KCVO Sir Al8eMon Heber-Per¢i' KCVO Key managtmtnt ptrsonll¢l Mr Glyn Morgan MBE Chief Execuiii'e Olyicer Compylny Secretary Mr Glyn Morgan MBE THE HEREFORD CATHEDRAL PERPETUAL TRUST TRV5TEES' REPORT {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER2020 Auditors HaysmaciniyTe LLP 10 Queen Sir¢ei Pla¢¢ London EC4R IAG Solicitors rarrer &. Co LLP 66 Lincoln'5 IThn Fields l.ondon WC2A 3HL Gabb5 Solicilors 14 Trroad Sire I lerelord I IR4 9AP Ba*kers l.loyds plc 8 Ili8h-foi FILreford IIRI 2AE The Cenlral Board of Finance Sena¢or House 85 Queen Victoria Streei London CC4V 4ET Inve$im¢nt Advisers Cazenoi'e Capiial ManaBemeni 12 Mwr Slreei London EC2R 6DA 14 THE HEREFORDCATHEDRAL PERPETUAL TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED31 DECEMBER 2020 STA TEMENT OF TRUSTEES. RESPONSIBJLITIES The Trustees114th0 are also ihe dire¢iors ofTh¢ HeTrford Cathedral Perpeiual for ihe pury)ose of¢ompan} laiil air responsible for preparin8 the tinancial stsi¢m¢nts in oc¢ordon¢¢ iii¢h applicable laii and Uniied Kingdom A¢countin8 Standard5 Iunitcd Kin8dom Gcncrally Accepted Aecouniing Praaic¢k including Finartial RerK)rtin8 St￿d￿d 102'Yhe Financial Reporting Standard applicable in the UK 3nd R¢publi¢ of Irdand". Compan). laiv requires the Trustee5 to prepare financial s￿leMentS for eaeh firtan¢ial y¢aT. ivhich give a true and lair i'i¢i%' ofihe slate of affairs ofihe Trust and of the irt¢oming resources and applicaiion of resources. including the income and e.xpenditure. of th¢ TrLLSL for that period. In pr¢p8ring those finwKial staternen￿ ihe TrusL¢es 8re required io.- Select suitable accountin8 policies and then appl) them eonsisteiitlytr observe the methods arwj PTinciple5 in the Charii) SORP. make judgements and e51imaies that are reasonable and pNd¢nL pr¢pare Ihe firtan¢ial ststements on the going conttrn basis unless il is inappropriate ¢0 presutne thai Ihe charity %iill coniinuc in busintss. The Trusiee5 are res￿nSIble tor keepiTr8 proper accounting re¢otds that disclose 14ith reasonable aceura¢!' 0¢ an> lime Ihe linancial position ofthe charii) and LO enable ihem io ensure that ihe lit)ar)¢ial staternen15 comply ii'iih the Companies Act 2006. The}. are also resrM)nsible lor safc8uaTdin8 ihe assds of the TnLX and h¢nr¢ for ￿Ing reasonable si¢ps lor the preveniion and d￿e¢ll0n of frn￿j and other iTregulariiie In so lar as ihe Trusi¢¢s are aiiwe.. ther¢ is no ￿ lei'ani awltl infomaiion ofiithi¢h ihe Trust's auditOTS are unaware- and the Trusiecs have iaken all steps Ihai thei oll8ht ts) haie taken to make Ihemselic5 aii%Te ol. an), rel￿.an1 audit information and 10 eMabli5h th￿ the audilors are alvar¢ ot ihai Inforn)￿lon. AUDITORS The auditors Ha)'smacint)'re LLP iiill be PTi>posed for re-ap￿Inunent ai the fordKoming Annual Generdl Mcctin ACKNOWLEDGEMENTS The Tlusi 8reail) appreeiaies th¢ ver%. 8enerous slJPPOrt of man) rndividuals. trust5 and orwdnisaiions. the close co- operation iiith Chaptcr and the ivork of ihc Cathedral iolunieers. li oi%Ys a p3ni¢ular debt of gratiiude io ils staty. This report has beert prepared in a¢¢ordance ii'iih the special prm"isions ofpart 15 ofihe Companies A¢t 2006 r¢lalin8 10 small ¢ompanies. Approi'e ' order ot'ihe Board ofTrustres on 8 July 2021 and $ignd on its behalf bs.: Mr Nal Chgir ol es 15 REPORT OF THE INDEPEP4DENT AUDITORSTO THE MEMBERS OF THE HEREFORD CATHEDRAL PERPETUAL TRUST Opinion We haie audiied the financial Sta￿ments of The Hereford Cathedrnl Perpetual Twsi for the year ended 31 Deceinber 2Q20 iihilh comprise Ihr Staicmenl ofFinancial AclIviLie￿ Ihe Baldn¢e Sheei. Ihe Cash Floii. s￿leMen1 and rM)tC3 to th¢ rinancial slaiemenis. includin8 a summaTh of si8nific8ni accountin8 rA)licie5. The financial reporting ITameiiorfL ihat h&8 becn applied in their preparation is applicable lai% and l.niied KingdoTn Acrounling Standards. in¢ludin8 Fin2n¢ial Reponing Standard l()2 The financial Reporting s￿￿ard applicable in the IJK and Republi¢ of Ireland (Uniied Kin8dom Generall) Aeccpied Accounitt)8 Practicex In our opiT*on. the finarKial 5tatcm¢niS'. 8iv¢ a ttue and fair vi¢w of tk of th¢ d*it¥ble ¢0m[￿Y'S affairs &8 at 31 Dtttmber 2020 and ils net mo%cmcnt in funds. including ihc income aNI cxpcndiiurc. for ihc icar then ended: haie Eten properl) prepared in accordanc£ 14iih Ilniied Kin8dom Cicncrall) Accepted Accounting PrAtti¢e- and hai¢ ken pr¢por¢d in a¢Lordw¢¢ iwith thE r¢4iijr¢m¢nL$ of ihe COm￿ni¢S 2(M>6. Ba5i$ for opinio We conducied our audit in accor11an￿ iiiih lniem￿lOn8i Stsndards on A￿lItIng (UK) (ISAS IUKI) and applicable laii.. Our r¢spon%ibililies under those Aandards aTe further descri￿ io ihe AudI￿r.$ wnsibilities for the audit of the linaHcial s13tem¢rbls s¢ction of our report. We are independent of thr charily in ac¢ordznce ii.iih the ethical requircmenis thAt are relevant to our audii of the finart¢ial ststements in the UL including the FRC'S Ethical Standard. and lie hai"e luifillcd our ￿her cihical re5rM>n5ibtliiies in accordancc iiiih these requiremen1& We bclitve the audit thidence ii'c havc obtsined is %ullici¢nt and appropriate io rKoi'ide a ba515 for our opinK)n. Conelu5ion5 relating to going conte In audiiin8 ihe financtal siaiemenis. lye ha%e concluded ihai the TnL*' of the 8OiDg wncern basis of ac¢ourtting in ¢l)c preparation ol'thc tinancial 5th*mcnts is appropriatc. Based on Ihc i)"ork lie haie perfornied. lit haie noi identified ani material uncertainiies rclaiing io cvcn15 or conditions Ihat. IndividuaIli or collecii%'ely. may si8nificani doubl on the chariiable company's abilit! to ciiniinue as a going concern for a period ol-ai least tiltlie TrK>nths from i4hen ihe financial stalements are authoTi%d lor i￿8￿¢. Our respon51bilitie5 and the responsibilities of the Tnt5w iyith resped io going concern arc dcscribed in ihe relevant sections Iil'ihis report. Other information The Tru.%liL's are reswnsible for th¢ othef informaiion. The other inforniaiion comprises the int0rn7aiion included in the Trustces, Annual Report. OUT opinion on the financial statements &)cs rw)t ￿Ver the infoThation an¢£ rxcept to the eA¢ent nihLri¥ise c¥￿I¢l(ly stated in our report. 11¢ do not express any lorn) of assurance ¢on¢lusion ihereon. In conncctton ¥itih audil of th¢ financial staL¢meni& OLiT ￿$￿InSIbIliti is io r￿d Ihe other infomiaiion and. in doing so. con.qid¢r iihcih¢r ihe other informaiion is materially irKonsisitni 14iih ihe financial statements or our knoii'ldge ohaincd in ihe audil or othcn¥ise appeaT5 to bc rnaltriall) mi55tsicd. If iic idenlify Such m•¢erial in¢onsisten£ies or ppareni material missiaoments. lie are reqllir¢d io d¢iermin¢ iihether ih¢re is a maierial mi55taternenl tn the linancial .qaiemenis or a rnaierial rniss(aiemeni of the oiher inforniaiion. If. based on ii()rk' i%e have performed. lye conclude that Ihcre i4 a material misstalemenl of this oihcr inform8tiOTL iir are required io repDd ihat fact. We hai'e noihing io Irport in thi$ regai￿. Oplnlons on other matters pr¢serlb¢d by th¢ Compattl¢s A¢1 2006 In our tspinion. based on Ihc iiork undcrtakcn in the course of the 3udit'. the irtfomiation given in the Tntsttts. Annual Rel￿ Iiihich in¢ludc% the dir¢¢tors' report ￿ared lor ihe p￿￿oseS of tompan! laii.) for Iht finaneial year for iihith the finantial staiemenis are ptEpared is consisieni iiiih Ihe linancial siaiernenis.. and thedirectors. rqxjrt includedwith1nthcTr￿I¢CY. Annual RwthBvebccnw* in aL*yJrthcc ivi(h applicable legal requireThents. 16 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERSOF THE HEREFORD CATHEDRAL PERPETUAL TRUST ICONTINUEDI Mattern on whith we art required to report by eAcep¢io In ihe li8hi of the kno%iled8e and undersianding of the ¢hariiable ¢ompan> and ils enwronmeni obLained in ihe coursc ol. the audiL we h&verM)t identified materia] mis5tstementS Lnthe Trusttts. Annual Rep)rt(whi¢h incorrorates the dÉreetOTS' rq>ortl. We have nothing to report in respect of the tolloiving mitteT5 in rel￿10n to ithich the Companies A¢t 201Y* requi￿5 US to repon to you if. in our opknion.. adequa(e accouniin8 records have noi be¢n k¢pi b)" the ¢h¥iLable company) or the charilable compan> financial 5th1emeTris are noi in a8reemeni %viih th¢ a¢¢ounting records- or certain dLSclosures of trustee5' remuneration specified by law aTe not made. or r hai'¢ noi r¢cEii'cd all Ihe infornjaiion and explanaiions 14"e require tor our audit,. or the TTUStees iyere noi eniiiled 10 tskt advanthge of the small cowies. ex¢mptions in the TN$tccJ' report and from the requiremeni to prepare a strategic report. R¢sponslbllllles of Trnsttes for tILe flnantlal st•i¢m**ts As ¢iplained more tull). in the Trn5tees' re3FX)nsibilitie5 StaIern￿t yet out on pa8¢ 1 i. Ihe Trustees Iiiho also ihe director5 of the charitable COEnpany for the PUTpose5 Ot-cornpan) laiil are responsible for the pr¢paraiion ot'ihe fJnan¢ial statements and for being salisfjed thai they 8iie a En￿ and fair i"ie%i. and torsuch iniernal conirol asth¢'fTus¢ees delerrnine is necessary to enable the preparation of finan¢iaJ stsiements that are free from material missthtemenL 11,heiher due to rraud or error. In prep8rin8 the financial ￿atementS. Ihe Trurtees are Yeswjnsible for assessijg the ¢h•ritsble company's ability to coniinue a5 a goin8 concern. di5c105in& as applicable. mailer5 related Lo 80in8 concern 2nd using the going concern ba515 of aecounlinB unless the Tru51ees either iniend to liquid￿e the charitsble compani or 10 cease operations. or haie no realis¢ir altrrnatiY¢ but io do 50. Auditor'$ Teiponijbilit￿ for the •udk of the fi￿￿tIll statements Our obj¢¢tii'es are to obt￿n ￿asonable assuran¢e about %theiher Ihe fJnan¢ial statetnenis as a 14.hole are tree tn)m maierial misstatement. thether due ￿ fraud or error. to issue an a￿AilOr.$ report that iticludes our opinion. Reasonable a55urance 15 a hi8h level ot'assurance bui 15 noi a 8uardnitt ihai an audiL conducied in a¢¢ordan¢e iiiih ISA5 IUKI iiill ali%%y5 detect a Tnalerial mi5Staternent 14hen it elists. Mi551atemeThts can arise from Iroud or error and air Considered aterial il-. individuajl), or irt ihe aggregate. the) Could Teasonabl)" be expected io influenc¢ th¢ ¢¢onomic decisions ol- user5 ¢aken on tk basi$ of Ihe5e tinancial $￿eMent ITregulaTilie& including fraud, are instances of non-compliance iiith laiis and re8ulaiion5. We design procedures in line 'iih L)ur responsibiliiiek outlined above. io deieci maierial missiaiemenis in w￿￿¢( ofirregularities. including fraud. The exieni io iithich our procedures are capable of deiee(in8 irregulariiies. including frdud i5 d¢¢ailed beloii= Based on our undersianding ofthe charitable cornpan). and ihe eni ironmeni in iithieh it operdte%. iir idcniified that the principal risks ofntsn-complian¢e 14.ith laiis and rtgulations relaied ￿ the regulaiorv frarneiioiK' penainin8 10 re8isiered hari¢ie5. and considered Ihr eklen¢ io iihi¢h nonrfomplianre might have a maierial etTect on Ihe lin￿cial stat#m¢nts. We a130 ¢on5id¢r¢d thos¢ laivs and regulations thaL have a dii¢¢t imp8¢1 on the preparaiiott of the tinancial Maiemenis such as the Companies Aci 21X)6 and ihe Charities Act 2011, and Conside￿ other faciors such os income tax. payroll lax and sale5 tax. We evaluated managernent's incentives and opponurbiries for frauduleni manipulaiion of the financial 51alemenls lincluding the risk of override of conirolsl. Audil procedures perfor[T￿ by the en8a8crnenL learn included.. IrtSP¢¢¢inB ¢OTresp)nd¢rt¢¢ Tegul*ory and tax aut]K*TiIi¢ Discussions %i'iih mana8emeni ineludin8 eonsiderniion of knoi%n or suspe¢ted instance5 Ot nOn￿OMpli8nce ii'ith lai%'s and regulation 2nd fraud: EV￿￿ating mana8¢m¢nt's wnttols de518n￿j to pr¢vent and ddrk.. for ihi5 rcp(KL OT for ihe opinions li'e have formed. Lee Siokc% IS¢nior Staiuiory Auditor) For and on behalt ofHa)sma¢iniyre LLP. Sthiuion Audilor 10 Queen Sirea Place London FC4R IAG Date.. 08 luly 2021 18 THE HEREFORD CATHEDRAL PERPETUAL TRUST STATEMENT OF FINANCIALACTIVITIES FOR THE YEAR ENDED 31 DECEMBER2020 UDre5trieted Fund5 Re51ricted Fund5 2020 TolAI 2019 Tol41 Funds Notes INCOME AND ENDOWMENTS FROM Donation5 and le8acies Other trading actii'iiies Ini'esimeni income 1.040,266 I l.(KTr5 136.482 784.397 10.397 30.695 l.824.663 21.402 167.177 677.659 14i.187 144.506 TotAI 1.187.753 825.489 2.013.242 967.352 EXPENDITURE ON Raisin8 funds Chrtrltablt aethvilits Granimakin8 44.835 2.091 46.926 163.878 199.814 875.J18 1,075.132 832.582 Total 244.649 877.409 1,122.U58 996.460 Nel income before inYestrneTrt movemtDt$ 943.104 151.9201 891.184 129.1081 Unrealised gainsl(lossesl on ini.t￿rnents 104.406 33.439 137.845 283.761 NET INCOME 1.047,510 Il8.48l} 1.029.029 254.6ii I'ran5fer5 beii4een tunds (640) 640 Net moverntnt In funds 1.046.870 117.8411 1,029.029 254.653 RECONCILIATION OF FUNDS Total lund% broughi fotThi'ard 3.484.039 769.896 4.253.93i 3.999.282 TOTAL FUIYDS CARRIED FORWARD 4J30.909 752.055 5282.964 4.253.9J5 All incotne and expendilure has arisen from coniinuing acrii iiies The notcs lorm part ot these flnancial St￿ementS. 19 THE HKREFORD CA THEDRAL PERPETUAL TRUST Compani No. 03123592 BALANCE SHEET AT31 DECEMBER2020 Unreslrieted Funds Rt5tri¢ted F•nds 20211 Total FuAds 2019 Toial Funds FIXED ASSETS Tangible as%eLs Ini'estmenis 13 14 3J07.965 795.786 4.303.751 4.105.481 3.507.%5 795.786 4,303.751 4.Illi.481 CURRENT A&SETS Debiors Cash ai bank and in harwj 15 720.505 339.624 67J24 24.086 788.029 363.710 84.774 192.798 I.000.129 91.610 .151.739 277.572 CREDITORS Amount5 falling due ii'iihin onr Year 16 137.1851 1172.526) NET CURRENT ASSETS 1.022.944 143.7311 979.213 148.454 NET ASSETS 752.055 5.282.964 4.253.935 FUNDS Llnr¢sli'icl¢d fund5 R¢siri¢i¢d funds 17 4530.1 4.5311.fA)9 752.1155 3,484,039 769.896 751055 NET ASSETS 4.530.￿9 75?.055 i.282.964 4.2i3.935 The noics lomi part of these finTrncial statrmerrt& 'rh¢ fina￿1￿ siaL¢mcnis ii'¢r¢ apprO￿¢d by the Board of Trustee5 on 8 Jul). 2021 and iitre signed on 11% behalf b).: Mr Nat Fl Trusiee ¢DL 20 THE HEREFORD CATHEDRAL PERPETUAL TRUST CASH FLOW STA TEMENT THE YEAR Ef4DED31 DECEMBER2020 20211 2019 Noi Cash nowj from opernting actlvltles: Cash generaied from operations 64.160 414.61) Net cash provlded by op¢r8tlDg *¢tlvl¢l¢s 64.160 414.615 Cash flows from invtsting attivttles: Purchase ol-fixed asset investmcnls Moiemeni on cash held in inv¢sLm¢t)ts Interest received Dii'idends received {68.52i) 8.098 216 I￿.961 11.258.tM)81 521.i8i 1.491 143.oli P4¢t ¢05h us¢d lo Invu¢lni •dlvities 11*).752 1591.919) Change in tash and t8sh equivA]ents in the reporting period 170.912 1177.304 C*$h and eash ¢qulvAl¢*ts *1 the ljetinningof tht reporting period 192.798 370.102 Cash and cash equii'alents at Lhe end ofthe reportin8 Friod 363.710 192.798 A $1otemeni ol-¢hanges in nei debt has not been presenied a5 Ihe charitable compan) I￿S no borroiiirtgs and hence no nei d¢b(. The no￿ lom part of Ihese financial stht¢m¢nts. 21 THE HEREFORD CATHEDRAL PERPETUAL TRUST NOTESTO THECASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER2020 RECONCILIATION OF NET INCOME TO P4ET CASH FLOW FROM OPERATING ACTIVITIES 2020 2019 Net income for the reporti*# period l*s per ih¢ $txi¢wot of tlnanti*l activltie5} 1.029.029 254.653 AdjUst￿eNtS for: Depre£iation charges Gains on in&e5lrnen15 Interest receii'ed r)iiidends re¢eii"¢d Ilncreasel,'decTeasel in dchtOT5 IncTea5e in rredilors (137.8451 1216) {166.9611 {703.2551 43.408 1283.7611 1143.0151 502.112 86.117 Net ¢A$h provided by •per*tiDg •¢ifvld 64.160 414.615 22 THE HEREFORD CATHEDRAL PERPETUAL TRUST NOTES TO THE FINANCIALSTATEM£NTS FOR THE YEAR EP4DED 31 DECEMBER 21120 ACCOUNTINC POLICIES B45is of PTep4ring the financial 51attmeDts The financial si&ements ol'the charitable compan)". iihi¢h is a public benetii eniii). under FRS 102. have been prepared in accordance Il'iih the Charities SORP IFRS 1021'A¢¢oun¢ing and Reportkng by Charities.. S18temenl ot. Recommended Practice applicable io chariiies Preparin8 their actounis in a¢¢oTdance iiiih The Financial Reporting Standard applicable in ihe UK and Republic ofireland {FRS 1021 Iseeond edition. elTeciiie l Januar). 20191,. Finartcial Reporting Standard 102 The Financial Reportin8 Standard applicable in Ihe UK and Republic of Ireland, and the Charities Aci 201 l. The rtnancial Maiemen15 have b¢en pr¢pared under the historical cosi coni'eniion M'ith the e.xception of ini'esiments iihi¢h ar¢ included ai rnarkei ialue. as rnodilied b). Ihe r¢traluation ot'certain assets. The principal arca ol. judgement ond esiimation u￿ertainlY relaies ￿ the assessmenl of l¢gaci' income receivable in linc iiith the policy sel Out b¢loii'. Colng contern b95ts The financial 51atements are prepared on a 80in8 concern basis ii'hich assumes that tht charil) iiill cimiinue io operate for ihe foreseeable tulure and for a rninimum period ot. 12 months from ihe approial of the tinancial s¢at¢ment. Having ¢onsid¢red ibe linancial pM)$ilion ofthe charity and bearin8 in mind ihe dis¢reiionory' naiure ot. much ot'ihe e.%￿nditUre. the Tru$i¢¢s or¢ ¢ortL¢ni thai ihis basis remains appropriate. and Ihai ihere is 00 material uncertainty connected withthe Tnw's ability 10 ￿ntInUe to op¢Thl¢ ￿ a Boin8 concenL l*eornt Inromr is ￿cOgnised ivhen the ¢haTiiJ has entillernent to the tund& any perlornun¢¢ ¢ondiiions a1￿Ched to the itemlsl of intome have been meL it is probablr Ihat the irKome 14'ill be receii'ed and the amouni rart b¢ measured reliably. Incorne from government and other 8ranty whets'witsl. grants or'r¢venue' grants. is recognised wh¢n the charii), has eniiilcmenl io the lund& any performance eondiiions aitsched to the 817nts hai'e been li IS probable that Ihe income iyill be receiicd and the amount can be measured r¢liabl)' and is noi deferred. For 1¢8a¢ies. eniiilemen¢ is uk'en as the earfier of the dale or) i%hich either.. the ch8riLy is aii'ar¢ ihai probaie h#9 been 8ranted. Ihe estsie has bttn firtalised and rtolification ha5 been rnade b)" Ihe ekecuior(sl io th¢ l-njsi ihai a disiribu¢ion iiill be made. or il'hcn a distribution is ff¢eii'ed frorn the e5rate. Receipi ot-a Ic8aci. in ii'hol¢ or in part. is onl} considcred probable iihen ihe amouni can be measured reliabl! and ihe Chariti ha5 becn noiitied ot. the executor's intention to make a diStrIb￿￿on. Whu¢ l¢8acies hav¢ been notified io the charii). or Ilie charitl 15 ail'are ol- the graniing of probaie: and ihe criieria lor income reco8niiion hai'¢ noi be¢n mei. Ihen the legaei 15 treated as a conlin8enl assd and disclosed il'maierial in ihe notes io ihe account Inierest on funds held on deposit is in¢luded 14.hen Teceiiable and ihe amount can be measured reliabli b! the eharlly: Ihis is norn)all) upon noiilicaiion of ihe inteTesi paid or payable bi ihe Bank. Expthdltu Liabilities are reco8ni5ed as eX￿ndItUTe a$ Soon as th¢r¢ is o l¢gai or ¢onsiTU¢iiie obligation commiiiin8 the chariiy to thai ¢Apendiiure. li is probable Ihai a transfer of economit ben¢fJts ii'ill be required in seiilemeni and the amounl ot the obliga¢ion can be rrKa5ured rcliabl!. Expendi(ure is accounted for on an a¢¢rua15 basis and lia5 been Classified urtder headings that aggregaie all ¢osi$ Te1a￿d 10 The ca￿80r1. Where eosis cannoi be dir¢cil)' aiiribuied ¢0 parts¢ular headings they haie been allocated ￿ actii iiies on a F&sis consisieni Iiith ihe usc ot. reso¥rces. Support costs are those functions that assist the iyork of the eharii} but do noi undertakE charitable actii iiies. Suppori c05t5 include oifict cost& tirjance personnel. pa)"roll and 801 emance Costs il'hich support ihe Trusi'5 a¢iivi¢ies. These ¢osis hai'e been allocated beiiieen ihe cosi of rdi5ing lunds and expenditure on charitable Grants offered subject to conditions iyhich haie been met ai the )'ear*nd dale are noied as a Commitment but noi o¢¢ru¢d as expendiiur¢. THE HEREFORD CATHEDRAL PERPETUAL TRUST NOTES TO THE FINANCIAL STATEMENTS (COI4TINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIFS-ICONTINUEDI Tang5ble tlxed assets I"angible lixed ak4el% costin8 more than £250 net are capitalised athd arc sta*d at COSL Depreciaiion is ¢lw8ed bi. equal annual instslm¢nts commencing ilith Ihe dale of acquisition ai rates esiimo*d 10 ivriic (htlr CO￿ or i aluation le55 any residual ialue oi'cr thc ￿￿rIed u5¢ful lives ivhich are as follo%i"s'. rixtur¢% Armi Fillings 4 years Debtors I"rad¢ und other d¢b¢ors arc ￿cOgnISed At the seiilenKni amourti du¢. Pr¢paymentS are valued at thc amount prL'paid. CAsh at bgnk ind Ib h*nd Cash at bank and ¢&%h in hand Ir￿Jud¢S cash aThJ $I￿rt-leM highl) liquid investments ilith a short maiurity ot. threc months ￿ les5 ITOM ihe da* ofacquisilion oro[￿ing olthe deEKTrSii or similar ac¢ounL Credltors and proV￿10n$ Crcdilors and proi isions art recosnised 41.here the chariiy has a preseni obligaiion Tesulting from o p#$¢ eveni thAI li ill probably re5uli in Ihe iransfer of lunds io a third parti and ihe amount due to setile lh¢ obligaiion can be measured or estima￿ reliabl!. Crediiors and prth'isithLS are t￿mall>. reco8nised ai ihcir seiilemenl ar￿unt. TAx*tion The ¢haTit)' is eAempi from ¢orporaiivn on its Charitsble *Liiiii¢& The charii)" is rM)i reg1￿cred for ialue- added purposes. Fund actounting un￿ty1¢￿d fuThls Can be used in a¢¢ottlat)c¢ iiith th¢ ¢hari¥ble obieciii'es ai I1￿ disCr￿lon ol'ihL' T￿sLee$. Restricled funds can onl!. be used for particular restricltd purpose5 il'iihin ihe objects of ihe ¢haiit¥. Resii'ictions aT>se ivhcn specified bi the donor or iihen are raised lor parti¢ular resthcied purposes. ruff explanation of ihc naiure and purpose of each fund 15 included in not¢5 lo the financial staiements. FinAncial in5trnment5 Thc Tru￿ onlj has linancial and financial liabiliiics ora kind lh￿ qualify as basic financial in51rum¢nis. Basic linancial irL%trumenL% are iniiially reco8nised ai Irdn5aciion ialue and 5uiwquentl)' m¢asurcd al their s¢¢ilemeni value. Ptnslott com$ and other po$i-rttlr¢ty¢ot bt#tfli$ I'h¢ chariiable compani operdte5 a defintd conlribulion pension SCI￿Th￿. Contribulion5 pa)'ablr ¢0 the ¢haritabl¢ ¢ompany'spoi8ion s¢heme are¢harged￿ the Stst¢mrntofFinan¢iai A¢tivi¢ies in Ihe wiodto wtii¢hth¢y retste. DONATIONS AND LEGACIFS 31.12.20 31.12.19 Grants from TTUSts l Fourklaiions Donaiiorts Gill Aid Legacie8 579.223 347.430 27.615 870J95 202.922 281.378 26.859 166.500 1.824.663 677.659 Donation8 Include £63.500 from the Arts Council and £56.869 from the Austin Communiiy Found￿10n. 24 THE HEREFORD CATHEDRAL PERPETUAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED31 DECEMBER 2020 OTHER TRADING ACTIVITIES 31.12.211 31.12.19 Ei'enls E￿leM clo1￿er projeci management charge (Chapter) l J52 10.050 14i.187 21.402 14i.187 INVESTMENT INCOME 31.11.20 31.12.19 Dii'idend income In¢eresi re¢eii'abl¢ 166.961 216 14i.015 1.491 167.177 144.i06 RAISING FUNDS 31.12.20 31.12.19 Ei"eni co￿3 Fundraisin8 m￿trialS Slatl costs Support costs 51.450 3.926 15.490 14.888 44.8)9 Sub-ioial CO5￿ of generniing %olunthTh in¢ome 3).416 154.288 Ini'¢stmenL managemet)t costs 1.510 9.sgM) Toul CO￿ of raLSln8 lunds 46.926 163.878 CHARITABLE ACTIVITIES 2020 Dlreet e•sts Grant rundlng •f activitie5 (See rH)te 71 Support tosi$ (See r￿le 81 TotAIs Grani makin8 45.137 977.i18 52.677 -075.132 CHARITABLE ACTIVITIES 2019 Direrl tosts CraDt funding of *eltvitie5 (See rtoie 71 Suppori tost5 (Se¢ noie 81 Totals Grani makin8 38.608 744.953 49.021 832.i82 THE HEREFORDCATHEDRAL PERPETUAL TRUST NOTES TO THE FINANCIAL STATEMENTS{CONTINUED) FOR THE YEAR ENDED 31 DECEMBER2020 GRANTS PAYABLE 31.12.20 31.12.19 Grnnt5 and donalion5 977,318 744.953 The ioial grants paid ￿ Chapier during the )"ear ii"¢re 8s folloiis- 31.12.20 31.12.19 Fnhii¢ Ea%Lrn CIoi51er projeci coniribuiions Boo¢h Porrh Chapel project Font proje Fire s)siem Recoicri ofVAT fmm 2017-18 674.1 1.875 14.160 431.352 i.WO 27.323 93 J18 463.67) Clini'al .Ilii.flC Choi71 found￿lOn grunis Choir Tvur.. Rornc and Nonnandi D-Da) 75 Si Maiih¢ii Pa55ion 168.(MM) 168.000 4.873 5.000 17J.(KX) 177.873 Ediic&iithi Educalion grdnt 12.(MM) 12.000 Adrnin OllicLr/ Cxecuiiie Officer GencTal Chapter runnrng costs Oih¢r granis 15.170 75.600 102.(K>D lQ2.(M)O 91.405 977.318 744.9)3 26 THE HEREFORD CATHEDRAL PERPETUAL TRUST NOTES TO THE FINANCIAL STATEMENTS-CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020 SUPPORT COSTS 2020 Fuodnising Cr*nts Totals Support and govemance cost5 14.888 52.677 67.)65 SUPPORTCOSTS 2019 Fundrdisin8 Grants Totals Support and governance c05tS 44.389 49.021 9i.860 NET INCOME Nd irKome i5 after ¢h8rBing 31.12.20 31.12.19 AudI￿rn. remuneraiion- IOT audil Current )"fdr - prior year under a¢¢ruo1 non-audii 5.31M) 5.000 2.7iO 1.730 10. TRUSTEES, REMUNERATION AND BENEFITS 'Therc iltre no Trustces. r¢miDier8tion or other ￿￿triL% for ihe year eThled 31 De¢ember 2020 nor for tlie year ended 31 December 2019. Donations rectii'ed fTOrn TTusiees in iotsl ii'er¢ £900 together i*i¢h £500 receiied trom chariti ol-ithich a Tru$ie¢ is ¢hair (2019= £1,540 toB¢ih¢r iiith £500 receii'ed Irom a ¢hori¢) of ii'hi¢h a Trusiee is chairl. During the )'ear no Trus￿, expell￿e3 were reimbursed (2019: £nill. STAFF COSTS 31.12.20 Jl.12.19 Wages and salari¢s Social securiiy costs Other pension Costs 83.430 5.050 7.857 93.)14 7.087 8.879 96.337 109.480 Thc ke> management personnel of the Trust comprists ihe irustee5 and the Chief Exte￿ikt. The toial ¢mplDI'¥v benefiis of ihe ke). managemerti ￿r$ol)ne1. including employees, pension and naiional insuran¢e ¢oniribulions or rhe TTUSI. i%ve £71.42012019.. £69.6721. The ai'era8e monthly number of employtts durin8 the )'ear li￿aS tolloiis- 31.12.20 31.12.19 Administration ol-the Tn¥ No emploi'ee ii'os paid more than £60.0(x) per annum (excludin8 non-tsxable ￿rits and enyloyer's Nl) during the curreni or precedin8 year. 27 THE HEREFORDCATHEDRAL PERPETUAL TRUST NOTESTO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDEDJJ DECEMBER 2020 12. COMPARATIV&S FOR THESTATEMENT OF FINANCIAL ACTIVITIES Unre5¢ricted Restrkt¢d Funds Funds 2019 Total Funds INCOME AND ENDOWMENTS FROM Donations and legacies Oiher irading activiiie lrti¢sim¢nt income 195.529 T45.187 125J46 482.130 677.659 145.187 144.5(16 19.1(rf) Total 466.C62 501.290 967.352 EXPENDITUREON Raising lunds Chxrltsble a¢tlvbtl¢s Grants and dorw¢ions 163.878 163.878 205205 627.377 832.582 Total 369.083 627J77 996.460 Net Intome before iTrvest•ent ovem¢nt5 96.979 1126.0871 129.1081 Net gains on investments 240.565 43.196 283.761 NET INCOMEI(EXPENDITURE) 337.544 182.8911 254.65) TrAnsferJ btThveen fu*ds (28.0221 28.022 Net movemt#t in fu￿1* JQ9.522 154.869) 254.653 RECONCILIATION OF FUNDS Total fund5 bro￿thi forwanl 3.174.517 824.765 3.999.282 TOTAL FUNDSCARRIED FORWARD 3.484.039 769,896 4253.935 13. TANGIBLE FIXED ASSETS Fixlurt5 anil Ilttlngs COST Ai l Januarn" 2020 and 31 Deeember 2020 20.580 DEPRECIATION At l Jartuarn 2020 Charge lor the )'ear 20.580 31 December 2020 20.580 NET BOOK VALUE Ai 31 Decemkr 2020 At 31 December 2019 28 THE HEREFORD CA THEDR4L PERPETUAL TRUST NOTES TO THE FINANCIALSTATEMENTS (CONTINUED) FOR THE YEAR Ef4DED 31 DECEMBER2020 14. FIXED ASSET INVESTMENTS Cash And s¢¢tlement5 p¢ndinE Ll$t¢d Investments Totals MARK￿vALuE A¢ l Januari 2020 Addition$ Disposals Gainslllosses} on ini'esiments 4.026.497 68.523 78.984 4.105.481 68.523 {8.U981 137.845 18.098) 137.845 Al 31 December 2020 4232.865 70.886 4.303.751 There %itre no ini't5tment as5et5 ￿tside ihe UK. Represenied b).: 31.12.20 31.l2,19 Cash Cazcnoie Charilv Multi-Assei Fund Cazenove Responsible Multi-As5ei Fund 70.886 2.846.062 1.386.803 79.431) 2.767.573 1.258.478 4.303.751 4.105.481 Hisloric cosi of inveMment 2.462.182 2,401.7i7 Is. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.20 31.12.19 Trnde debiors Accrued income Prepa)'tnents Other debior5 2.978 78.145 3.6il 775.999 3.65S 8.375 788.029 84.774 Accrued legac), income in 2020 is £699.5￿{20I9: £nil}. 29 THE HEREFORDCATHEDRAL PERPETUAL TRUST NOTES TOTHE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER203 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.20 31.12.19 Trade cirditors Accruals and deferred income 724 171.802 42.539 86.)79 172.526 129.118 MOVEMENT IN FUNDS 2020 N¢t ovement IA fu*d5 TrAnsftrs between Al 1.1.20 At31.12.20 Unrestri¢t¢d funds l.ong-teTrn inie51Jncnt Working capital Rtslricted funds Edu¢31ion Fund F8brie FuNi Chordl Funds East¢m Cl0i51er tkliiery Fund Font Projc¢t Fund 3J94.787 89.252 113.178 3507.965 1.022.944 1.047.510 16401 640 {96.0021 145.548 S69.8￿} 49.657 621.171 51.362 83.5021 14.188 83.502 12.5(M) 54.5J9 81.227 769.896 640 752.055 TOTAL FUNDS 4.253.935 1.029.029 ia82.964 Nw mthK¢m¢ni in fund& included in the above. are as folloivs= Ineome Expemdltuwt Cains and losses irt fund$ Unrt$tri¢ttd funds General l-und Restrltttd fund$ Education Fund Fabric Fund Choral Funds Easiern Cloister Delii'ery Fund Foni Proje¢i Fund ArchitetLural HL¥iiage 1.187.753 1244.6491 104.406 1.047.510 I 1.3 2.079 193.014 590.688 141.188 14.1(A) 112.(KKI) 11.9681 {175.¢J911 (614.1￿)} ifvioi 33.439 51.362 183.5021 14.188 (14.1￿> 825.489 {877.4n91 33.439 TOTAL FUNDS 2.Oli.242 {1.122.0581 137.845 1.029.029 THE HEREFORD CATHEDRAL PERPETUAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED3I DECEMBER2020 17. MOVEMENT IN FUNDS (CONTINUED) 2019 The ¢omp**ii'e figures for moYem¢nt in funds are a5 follo1%5= Ntt movement Transftrs between funds At31.12.19 funds Unre5trirted fundj Lon8-ierni ini'esim¢ni Workin8 Lapital Rtsirltted futtd$ Education Fund Fabric Fund Choral Funds Easlem Cloister Delivery Fund Font Proje¢1 Fund 3.174.517 337.$44 1117274) 89252 3J94.787 89.252 458 l)0.357 459.209 204.702 30.039 (5421 84 145.548 569.809 I10.6(X) 1232.6401 24.iOO 27.938 54.539 824.765 (82.8911 28.022 769.896 TOTAL FUNDS 3.999.282 254.653 4.253.935 N¢1 mol'emenr in funth. included in lh¢ 8boi¢. are as folloii's.. ltstomt Expemditu GAins And 105se5 Movtment in thnds Unr¢$irl¢t¢d funds General Fund R¢strte¢td fvnds Educaiion Fund FabTiC fund Choral Funds Easiern Cloister Delivery Fund Font Projeci Fund 466.062 (369.0831 240,565 3i7.544 11.458 112.(rf)01 15421 246.429 198.712 29.51N) {179.02il {431.3521 15.IKK>I 43.196 110.600 1232.6401 24.iOO so1.2￿) {627.3771 43.196 182.8911 TOTAL FUNDS 967.352 (966.4601 28i.761 254.65i Tratt$ftrs btth¢tn funds Trdll5fer5 be(iittn funds made relate io {il projects subsidised by the unres¢ri¢ied fund lill Ihe iransfer beiiieen Ihe long-ierm initstmeni lund and ihe 14Y>rL-in8 capital fund made LO O￿tr ¢0 shoii th¢ long.i¢rrn inveslmeni fund separ&tel)'. Funds detNII Unr¢$triettd fund$ The Trustees have desi8nat¢d the gr￿er pan of the UDresiri¢¢ed funds as a long-ierni fund represented b invesirnenis. Wiihin Lhis amount ihe). haie turther earniarked £45.OIK> tor Clerg) Housing. The balance ot- Ihe unrestricted tund represenis ihe 0￿ratIonal iioTkin8 capital ofihe Trusi. Rt5tritted funds The Fabi1¢ Fund hos beet) euablished w provide fJnan¢iaJ support for the mainlenance ot. lh¢ tabri¢ ol. Heretuixl Caihedral. 31 THE HER£FORDCATHEDRAL PERPETUAL TRUST NOTES TO THE FINANCIAL STATEMEIYTS(CONTINUED} FOR THE YEAR ENDED31 DECEMBER2020 MOVEMENT IN FUNDS ICONTINUEDI 2019 The Choral Funds CL)mpMse a e￿abliShed to provide fina￿la1 support to the ThoT#I Ftsundaiion ()t-Heref(Trrd Caihcdral tn relation 10 promotion of the religiouk musiLal artd sttular ¢ducaiion of pupils. the repair. maintenance and reneii'al ofih¢ vrgans ofihe Cathedrnl and the a¢quisiiion and mainienance ofits musical books. Inanu5cripts artd ihe employmeni ol'all ￿31r1￿cludIng la}, clerks in connection iiiih Lhe chordl 5m'ittsof the C*hedral. Wiihin the Choral Fund5. Ihc Choral Investment Fund form5 part ot. the ini.e￿￿en1 portfolio held. The fund ha5 been e51abli5hcd to gcncralc income 10 5UPPOrt the Ch(wal Fouod*ion ofi lerelord CaLhedral. Gain5 and losses on the Ini,e.￿ment are reflccicd in the fund balance. Tlie Ld￿atIon Fund is used ￿ a55iSI the Cathedrnl in Tunning it% ¢d￿all00 programm¢ ii'ith school& collegcs ar¥J ii'Cf5ilics. along ii'ith the adult ￿ctOr. 18. RELATED PARTY DISCLOSURES Tlte ChowerofHerelord Coihedrnl The Very Rtherend Miehael E Tai in()r is b￿h a trus￿ ofihc Hereford C￿hedral PerJKtual Trust and the ChaM¢r of Hereford CaihedrJl. AndT¢ii' Wl'nn 1435 8 I'rust¢¢ ofthe I lircford Caiwral Perydual Trnst uniil earls Dccemberand is an IndeFrden¢ Ember of Chapter's Fit)an¢e. Audit dnd Risk Commiiiee and I IR Commiiicc. Nat Hone. is a Trustee and Chai￿an (Trl'thc H¢reford Cathedral Perpe[￿ TrusL Ywesents the'l'rull. as Chair. on Clwter's Finan¢& Audit and Risk Commiitee Gli'n Mor8an. Compan). Sccreiarn ol'llcreford Caihedral pe￿lua1 Trust. ii•s olso atlin8 as Ihc Chdpter Clerk and The Chi¢f EN￿￿tIlE of ih¢ Chapl¥i vf H¢r¢ford Cad*thal up 10 22 Februar) 2019. Glsn M(Ygan ii"a5 lloi remunei'3(ed lor the role ii"iihin Chawer. During the year £977.318 {2019.. £744.9531 of grants made io ihe Clwier of H¢reford Cathedral. Details of Ihe granis ¢an be found in noic 7. At the lear end £48.891 du¢ io Chawer {2019.. £75.0231. During the ivar £Nil {2Ql 9.. £5.9321 of go(yJs and 5eTvices ilas rLrhar8ed from ihe Chapter of Hereford Caihedral to Heretord Cathcdrnl Pcrpetual Trusi. At the )'ear end £Nil12019= £2.168) ouwandin& Hereford Caihedrol Enlerpnses Lid Thc Vcry Rtscrend Michael E Tavinor iw5 b￿h aTru5Lee of Hcrcford Catharal Perpetual Tjvst attd A d1￿Clor ol. HercfoTd Caihedral En￿rpriSeS Ltd. GI￿￿ Morgan Compani Se¢reiary until 22 Februarn 2019. Durin8 ihe lear £ Nil 12019.. £173} of so￿5 and service5 IlCIt PUT¢hased from He￿ ford Cathedr41 EnL¢rprises Lid. At the l'ear end £Nil12019.. £173} outsianding. 19. SHARE CAPITAL The Hereltird Cathedral Per￿Ual is a company limiied bv guaranlec Ire8iStered in England and Wales) and does noi haie share capitsl. 20. CUARANTEE Everi. member otihc compan) undertakes io coniribuic iothe assets ofihe Compon) in ¢he eveoi ofiLS being iiound up during the time Ihai he or she 15 a m¢mb¢r or 14ithin Onc I'ror afkni*rds for pa! meni ofihe deb15 and liabiliiies of lh¢ ¢ornp4n) rontWl¢d b¢loie he or she ceases io be a member. and of ihe costs: char8e5 and expen5¢s or 'indin8 up the same and for adjusimenl of ihe ri8Ms of con1rib￿0T5 amon8St themseli'es. wch as ma} be required noi cxceeding. in Ihc case of any rnember. the sum or£i. 32 THE HEREFORD CA THEDRAL PERPETUAL TRUST DETAILED STATEMENTOF FINANCIAL ACTIVITIFS FOR THE YEAR ENDED 31 DECEMBER2020 31.12.20 31.12.19 IP4COME AND ENDOWMENTS Donations Ind legAties Grartls Donations Gift Aid L¢8acies i79223 347.430 27.615 870.395 202.922 281.378 26.859 166.500 Total inroming resources 1,824.663 677.659 Oihtr tr8dlng Actfvldes Evenis Incomc from Ch8pier Iprojeei manaBemeni charge) 11.352 10.050 1441.187 1.000 21.402 145.187 Investmeni InC0￿e Dii'idend in¢ome-ICazenove) Inieresi rccetvable 166.948 229 143.7)) 7il 167.177 144.506 Total Income I￿15.141 967J52 EXPENDITURE RAi5ing donations #rtd Itgaties Adieitising 82 82 Other tr*dlng #¢ifvlde$ Eveni expenses PIK>nw)iional material and other fundrdisin8 Costs Payroll and related cost5 Office c051S P051age. S￿li0nery and admin Sundrie5 il.450 3.926 54.073 31.586 5.038 45.137 5.820 7.940 1.083 2.￿5 65.018 154.174 Inv¢$tment manAg¢m¢nt ¢osts Ponlolto Man￿￿ment 9.622 Ch*rltgble A¢tlvitie5 SialTc051S OtTice tosls Postage. stationer). and admin Sundries 15.490 29.479 6.317 2.227 586 I,)88 221 18,46i i8.609 This page does noi forni part ol-lhe 5taiutory financial 5wements. 33 THE HEREFORD CATHEDRAL PERPETUAL TRUST DETAILED STA TEMENT OF FINANCIAL ACTIVITIES {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER20211 31.12.20 31.12.19 Support eosts Governave costs Siaft-cosis Auditors, remuiieraiio Auditors. remutheraiion for Mn-audil iyo Po%iag¢ and siaiioneri Sundiivs O￿lre ¢o$ts 35.710 8.700 3.3¢X) 1.059 144 776 34.836 6.000 2.100 1.48) 390 4.209 49.749 49.020 Totll exp¢ndlture 144.740 251.507 Net income before gr%nt5 to C**pter IWJ02 715045 Gi8nL$ 10 Chapier (see n￿l AI 1977.3181 (744.9531 Ntt Inoom¢ll¢%ptnlliurel eycltydlng lthvesimtnt g•S*$ 891.184 129,1(*l NOTE A The i(xal ordllLS paid ￿ ChapL¢r dllrin8 ¢h¢ %i¢r¢ as folloi*s= 31.12.2 31.12.19 .&￿L'¥n Range I Clo1￿er Project coniribuiions PorLh Chapel project Fonl pnijcrt Firc %) Rccoi'o'i of VAT frorn 2017-18 674.1 1.875 14.160 431.352 S.0(K) 27.323 93 690.318 463.675 Choi*l .Kliisic Chui-41 Ftrundation gr￿n15 Choir-four.. Rorne al￿ Norndndi D-D¥4) 75 Si Maitheii P&s5ion 168.(X)O 168.0(K> 4.87i 5.01 5.000 173.000 177.873 Edueaiiort grani 12.(MJO 12.000 hei. Admin Ollic¢ri E¥eculive Officer G¢n¢ral Chap¢¢r running cos her &iranis li.170 75.600 635 102.0(M) 102.(K)O 91.405 977.318 744.953 "I"his pa8e do¢% noi fonn part of the statulori firwncial stattments. 34