REGisfERED COMPANY NUl•lBEK' 03123592 (England and Wales) REGisfERED CHARrrY NUMBEL. 1051168 Re rt of TNstees and Financial Staternts for the Year Ended 31 December 2023 for The Hereford Cattrdral Per tual Trust Thorne Widgery A£countancy Ltd Chartered Accountants Statutory *JJditors 2 Wyevale Business Park Kings kre Hereford Herefordshire HR4 7BS
The Hereford Cathedral Per tual Trust Year en(kd 31 DecemEer 2023 Contents of the Financial Statements for the Year Ended 31 December 2023 Chainnan's Report 1 to 3 ReFort of Trustees 4 to 13 Rep)rt of the Independent Audit5 14 to 16 StateTrtnt of Financlal ktivltEs 17 Balance Sheet 18 Cash Flow statert Notes to the Cash Flow Statement 21 Notes to the Financial Statements ZZ to 3) Detalied Statement of Flnanclal ktivitles 31 to 32
The Hereford cadra1 Per tual Trust CHAIR'S REPORT This is my Fifth report to the Govemors since king elected Chair of the Hereford Cathedral pertal Trust I'the Trust"). Sadly, I have to repeat what I said last year aut the general baCkgrnd. The in the Ukraine continues. The dreadful events in the near east that wre triggered Octotkar 7th last year have split vL)rld opinion and are shaking previously firm alliances. There are a record numÈer of electi(MS CLYning up this year that may lead to imFQrtant changes in p)licy. Oddly. the stock markets have discounted this barrage of F()litical uncertainty. Last year's economic nevts was the sharp rise in inflation. So far in the current year, inflation yrldWIde has teen cc¥ning dovm. Central banks seem to be Laming the Lra5t withwt driving econcxnies into recession. This Is good for the Trust, LEing a capital fund that ha5 substantially recovered the value lost in 2022. One wonikrs vthether it will last. We will focus on Investment for the long tenn t)Ugh the ride may te rocky. The Cathedral has risen to the chaltenge of difficult finances by a combination of careful cost management and increased activity to bring in new people. A first was staging of a Passion Play in Lent. It VRS staged by The Revd Canon James Pacey, the relatively recently appointed can¢ ChancelLc<. The Dean played Annas. a challenging role given Annas. antipathy towards Jesus. There is c(Stant activity there and there will be renevd focus on taking that the Cathedral does so well out of the building and into Di(Kese and beyd. What we do is world class and the Yr1d must have acce55. The choir is a v40nder. They recently Ferfonned Bach's Christmas Oratorfo and the St. John Passion quite SUFerbly. The carol services vEre packed. They continue to do the daily round of moming and evening seNices. The number of girls in the choir growing and are all thrilled that we have taken this step. The organ, my particular passion, never emits a wrong note. Recruitment for the choir is a challenge. Financial constraints have meant that the bursary that can offered has had to be cut. Thls means that recwitment is [t as indendent of parental an$ as V hvuld like. We V+ill need to at least double the SI of the Trust's capital to make a difference to this problem. Last year, I said that we were revwAing the split in resp(sibility for fund raising betwEen the Trust and Chapter. A Head of Development - Emma l*laggs - and a Bid-writer - Julia Smith - have been recruited. They are working very closely with Georgina Miller, Executive Director of the Trust who stepFed into Glyn hb)rgan's shoes. They are all working together both to raise funds for immediate use by Chapter reporting to the Dean. and long-temi funds for the Trust with a dotted reportinq line to the Trust's chair. The Trust wlll f¢xu5 on its Charitable Objectives as emihxlled fn its name "Pertual, These are set clearly in the Trustee rep)rt. Much of tlxk grant is made unrestricted so that the Chapter may use it to fund the general running of the Cathedral. Some of the grant is made specifically to support the music and, parateLY, the education wogramnE. The ultimate goal is to create a fund large enough to provide investment income that vKxJld cover the cost of the vnderful music and education programmes so guarantee their future in perpetuity. This VULd release other funds within Chapter to cover the general running expenses. Tuming to the FtrformatKe during the year, the foliowTng tse SnManSes the financial perf0mnCe of the Trust. Page 1
The Hereford Cathedral Per tual Twst CHAIR'S REPORT c(mt1nd Year Ended 31st December 2023 Unrestrlcted Restricted Restricted Restricted Choral Fabric Education Total Income Revenue Legacies 7.239 11,IIK) 18,239 Donat71$ Tl,536 21,019 1,111 1),666 Events 11,346 11,346 General Grants 17.cm 51,gX) 17.IX 85,500 Investment Income 206,LI)9 38,211 244,220 Other Income 4.756 4,756 Total revenue Income 323,886 121.730 18.000 464.727 Ex ndfture Grants to Chapter Administrative costs 213.106 120,144 351,250 75,171 1,586 76,757 Total Expenditure 288.277 121.730 18.000 428.007 Income surplu51(deficit 35,609 36,720 Capital receipts Unrealised Gains/{lossesl 10.LIXJ 12,6LK) 22,6CM) 145,803 23,715 169,518 Total Capital movement 145.803 33.715 12.600 192.118 Net movemerrt of funds Transfer between funds 181412 228 838 (289,29)) 289,2fKI NAV 1 st Jan 5,251,953 535,298 84,429 9,595 5.881.275 NAV 31st Dec 5.144.075 858.303 85.540 22.195 6.110.113 The Trust made a surplus on its unrestrirted Revenue Acc¢wnt of £35,6LYI vthich 15 a sat15factory result. TTrE Trust does not aim to make large surpluses but trjjilding a revenue reserve in a particular year gives the Trustees more confldence to increase grant to Chapter In a subsequent year wlth a ltrA*r risk of depleting capltal If there Is a revenue deficlt. Sn add1t1, Capital Account has gained back during the year under scKne of the losses in previous sEar and this trend has ct)ntinued into the current year. The Trustees haNE Initlated a of Its Investment rM)Ilcy and rnagernent that 11 rerM)rt In 2024. The Trust held a full programme of events. Thanks to gererosity of Edward and Tamsin CITve, anottEr Scessful and fun clay shtr)t was held at Vlhitfield. Thanks to the generosity of the .William AdLingt( Cadbury Trust. perfomances of J.S. Bach's Christmas Oratorio and St. Jthn's Passion V held to full h[Se5. The now vEII.establithd Advent Servi VRS held Tn December at the Guards Chapel in London. led by Hereford Cathedral's world class Choir. Page 2
The Hereford Cathedral Per tual Trust cHR.5 REPORT continld We are very grateful to all vtho give to the Trust, both to the Incc4ne and Capital funds and V•E refflemr with gratitude those who have left such generous legacies. The Trustees have not changed during the year. The Trust has a broad range of skills to bring to bear and it is an honour and pleasure to work wlth trn. There Is always room to broaden furtFtr. We have f0MlISed a number of committees to focus on certain aspects. Audit Committee Prince Charles de Rohan (Chair), RKhard Banks. Nat Hone Investment canmfttee Richard Banks IChair}, Prince Charles de Rohan, Nat Nominations ccmmittee Julia Budd (Chair), Nat Hone. Katherine Gamier Risk Committee Katherine Gamier {Chairl, Ntk HaNey. Nat Hone l am very grateful to all the Trustees for tt1r eat c(mtrilxJtion and Georgina Miller, our executive officer VI runs the Trust single handed. It is the intention of Trustees, led by the N(xninatis comrnittee to fu5 on how V*E manage the Membership (called in the articles our Governors and from wh(Mn the Trustees must be chosen) to help develop the Trust. To end on a piece of very gcKrfJ nevts, have just heard that The King has agreed to retain his Patrage of the Trust. We are most grateful to His Majesty and iwk forward to developing the reLationship. Nat H(Me DL Chair Page 3
The Hereford Cathedral Per tual Trust Re rt of Trustees for the Year Ended 31 Decemkr 2023 The trustees who are also directors of the charity for the purposes of the Canpanies Act 21116, present their rerx)rt with the financial statements of the charity for the year ended 31 Decernr 2023. The trustees have adopted the proVisi(S of Accounting and Re[)rting by Charities: Statement of Recommended Practice applicable to charities preparing thelr accounts in accordance with the FinarKial Rep)rting StarKlard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 20191. The Trust- throughout thls report refers to the Hereford Cathedral PerytUal Trust belng bjth a reglstered compary and registered charity, on *lK)se affairs for the >Ear ending 31st December 2022 is the subject of this report. The Trust is registered vAth the Fundraising Regulator and is a corp)rate member of the Instltute of Fundralslng. The Chief Executive is also a member of the InStite. OBJEcllvES AND AcrivmES CHARrrABLE OBJEcnvES The Charitable objectives as set out in the knoranthm arKI Articles of AssLKiation of the Trust are as follow5: The object f(Y which the Trust is established is to prlote the religiS and chorltGble ¥York of the Church of England by providins support for oll, or any, of the charitable purm)ses to which the capitulor revenue5 of the Chapter of the Cathedral Church of the Ble55ed Wirsin Mary and St Ethell)ert in Hereford (-the Cathedral-) ore applic¢Ie includins especially.. l. The promotlon ond molnteTh7rKe to o high standord of choral services of the Church of Ensland in the Cothedrol (whether simple or elaborate) in such woys 0$ the 8cx7rd of Governor5 in its obsolute discretion think fit Including (but wlthout prejudice to the senerality of the foresoins). prLYnOtlon of religious, musical and seculor education of pupi15 Ottending ary schcd in which the doctrine5 of the Church of Ensland is given and perfonnance of the choral services of the Church of Ensland is observed," and olso the repiir, rnalntenae renewal of the cSan5 of the Cothedral the acquisition and Mainterne of its musical bcK)ks and monuxripts. arKI the employment of all stoff ilUding lay clerk5, in connection with the Chcral Service5 of the Cathedrol," and 2 The preservation, maintenance and develoFrnent of the Cathedral senerally. The Board ha5 agreed the followlng more deLilled definition of the edatIon objectfves set Jjt In the Ilernorandum of Ass(Kiation". To supwt the educational and intery)retatiornl k of the Cathedral ¢vnonsst people of all oges, in all areas of Its mission ond ministry. U5vny the resource5 of the wlKle Cathedral Found]tiffl. This would include, but not exclusively, work with 5ch(xI5, colleges and universities," adult education. Sunday School, individu015, family group5, Visitors and pilgrims," creatins access and opportunitie5 in the Library and Archive5 and assLxiated exhibition," provio7rs interpretotive materials in prL¥notins the cathedral and its mission,. and relating Christianity to contempomry 5criety. Page 4
The Hereford catIdra1 Per tual Trust rt of the Trustees for the Year Ended 31 December 2023 OPERATIONS The Trust fulfils its charitable objective by the wovisicfft of funding and services to the Cathedral Chapter. The Cathedral Chapter is the Legal entity vthich own and are restxmsibie the Cathedral and aSSlated proFerties. Their charitable objective is to prcÉlaim the Gospel of Christ in t City and Diocese of Hereford and in the wider Vr1d, by serving and inspiring all those who encnter the Cathedral and its community. The Trust provides funding and rvices in following ways: The TTUSt is building a long-term investment fund {the-Capital Fund) income frcffi which will provide a stable income to the Trust. This wll contribjte to a reVenl surplu5 that can k granted to the Cathedral Chapter. Additions to tIR% Capital Fund c(Mne mainly from legacies and gifts. The exact nature of the Capital Fund will deFnd on the wishes of the donor. For example, tFpy may wish their g'ft to l)e ud for a srecific purFo. They may wish the gift to be treated as an endov4Tnent. The Trust is flexible to accc4nmodate a de range of donor requirements as long as it can (k) so efficiently. The Trust is very grateful to its regular donors. It seeks to increase the numter of and ensure that donors are properly Infomed on how tIKklr datIOn is used and feel part of the caddra1 community. The Trust holds events to raise rneY for the revenue accounL It also provides assistantr to Chapter for its own fundraising. The Trust also helps to raise the profile of the Catl*draL and its works to the wider community, both nationally and internationally. As a result. Hereford catdra[ has suprKrters all around the world. The Trust provides other assistan to Chapter including SUFV)rting project developrnent, crafting projects suitable for extemal funding and in prc¥noting the Chapterfs activities and own programrnes through Out of the Cloisters. The Trust continues to maintain close relations with other cathedrals, nati(al btsjies involved in the management of cathedrals, heritage organisalion, governnEnl, Vlhltehall and various Royal Households. The Trust, in partnership with Chapter, agrees an annual funding plan. This includes revenue support of the Choral Foundation and Education Department, along with unrestrKted funding in supFK>rt of staff and core revenue costs, with the goal of maintaining, if not increasing, this SUFP)rt in the future. The Trust also finds funding for Cathedral events. In general. these will be smaller sum5 {iess than £10,1)Xi) and the entlre sum, other than clearly identifiable costs, is passed onto the Chapter. Such a case is the grant from the W A CadtJry Charitable Trust in suptyjrt of the annual Holy Week perfonnance of one of J S Bach's Passions, though in 2023 this independent grant was incorF(Jrated into the main choral grant viith an expEctation of a Holy Week 2023 perforniance or an appropriate variati(m deFEnding on the then regulations. Page 5
The Pref0rd Cathedral Per tual Trust rt of the Tru5tee5 for the Year Ended 31 DecemLEhr 2023 OBJEcllvES AND AcnvmES Signrficant activities Investment Policies The Trustees have with p)wers of Investment. Since 1998, its investsnents have Lren managed by Cazenove Capital, a trading am of Schroder & Co Limited. on a discretionary basis. Rather than running a discrete portfolio of directly held Investrnents, the Trustees agreed with CaTrncNe that funds should be invested in co-mingled funds managed by Cazenove 5Uitabie for charities and held for the long-temi. The Cazenove Re¥STbIe Multi-Asset Fund (RAIAF) 0[Ed in FeTrAuary 2020 a)d is the only holding currently at Cazenove Capital. RMAF aims to provide income and capital growth Tn excess of the cSuMer PrKe Index +4% per annum {net of fees) over rolling ten-year perityjs, trt with strict ESG wiicies. PMAF is also designed specifically fcf charities and is authorised and approved by the Charity Commission. The Fund currently has exposu to 23 underlying holdings. The Fund has an explicit reswnsible investment policy, vth screening all9d wlth cC¥ntTr charity cCCem$ and environmental, Social and governance analysi5, engagement and voting emttdded into the equlty investment wcKess. Cash awaitlng d15bur5ement for major projects is held in a nLrntr of Interest-tEaring bank aCcnts or In a suitable cash fund, a5 appropriate, nomally Yth the Church of Engtand's Central Board of Finance. Cazenove Capltal and Schr0r5 have a dedicated and well-resourced respjnslble investment team. They have achieved an A+ rating frcm the UN Principles for Responsible Investment (PRI) In each of the last five years. Schroder5 arE a Special adviser to the Carn Disclosure Project. a founding member of the instTtutional investor group on climate change" rnember of the UK Sustainable investment and finance acIation and tfre European Sustainable Investment Forum. All investments in companies made by Cazenove on LEthalf of the Perpetual Trust are subject to their rigorous reswislble Tnvestment and corpxate governance policies. Both academic research and our own expErience show that strong ESG management often delivers superior long-term return5. appraisal of ESG factors is Integrated in our stk and fund selection process. Cazenove's corwate governance and reS[xs7bie investment functions been In exi5teDce since 1998. A dedicated section of their Yb51te Sets out related policies. voting records, research rewrts and responsible investment revfews. For further infomiation on responsible investment, please go to: https: 11wv.schroders.CCrnlenl$U$taInab}Iity1cor[xjrate-reSFx)nsibIIityi For more infonnation on the RMAF, please go to: https: IlvhNw.casenovecapital.comluklcharit7eslwr-fundsl Trustees monitor long-temi Ferfomance carefully. At least cfflce a year. representatives of the Trustees meet with the advisors along wlth rePtativeS of the Mappa Ind7 Trust, vtho atso Use Cazenove Capital and vth the Chapter, who are also trustees of two otr charltaes, and tFEir separate advisors. Repre5entatTves of the diocesan investment committee are also Invited as are trust representatives to the dTrxese revlew meeting. This enables trustees to review the Ferformance of its investments compared to other investment managers. The Trustees will be comm1ss1csn8 a full external review of investments and Investrnent Folicy during 2024. Public benefft As a charity registered in England and Wales, the Trust reEKKts in aCcOrdae wlth the Charity C(Ynmission for England and Wales. guidance on public benefit and tFE Charitps kt 2011. The Trust has continued to work closely w7th Chapter and fundTng has been prided to supp)rt Chordl Foundatlon, educational work of the Chapter and a numt*r of fabric projects. All the projects have Included the engageThnt of the general wbiK. as V•EII a5 lping to protect our shared FK•ritage. Page 6
The Hereford Cathedral Per tLkil Trust Re rt of the Trustee5 for the Year Ended 31 DecernLKLr 2023 OECnvEs AND ACTIVrnES Volunteers When regulations allow, Trust uses voluntr5 in t• ways. Wember5 of the Trustee t# provide strategic, management. financlal and other expertise, joined by other memiE•rs of the Board of Governors and CoPted individuals in different areas of the Trust's work. A wider base of volunteers helps with varic5 fundraising events. Fundralslng The Trusty fundraises primarily thrgh institutions. trusts and foundaticS together wlth event-based fundra151ng and some individual donations. The Trust d5 not engage in cold-calling or street-based fundraising or use third party fundraisers and all activities undertaken a directly Mc7t0red and C(trOLled by Trust's staff. It has not received any complaints in year in connection with the propriety of its fundraising. The Trust is aware of the need to protect potentially vulnerable donors and in the small numLrr of cases vthere this is applicable it does so through their families. The Trust is registered with tPE Fundralslng Regulator and is a corporate member of the Institute of Fundraising. The Chief Executive is also a member of the Institute. Subject to any stEcific wishes connected with a bequest, the first £10,1lll of any legacy will be taken to the Revenue Account in order to meet the costs of running the legacy pllEramme and in meeting any immediate financial needs. Tk balance wlll invested in the Capital Fund under ts guidance of the Investment Managers in consultation with the Trustees. Any legal restriction cm a bequest will be hoUred, alth Shld there be concern over the nature or the extent of the restrictlon and 7knther Trust can honour the conditions, this will be clarified vth the Executors before the gift is deposited. In the event of a Lwuest tEing received with conditic5 laid out in a Letter of Wishes, this will be honOud as far as possible by the Trustees and the Executors kept formed. The legacy programme manages the relationship with tx>tential knefactor5, approwiate professionals and the Executors and families of those Indfviduais frcKn whom we have received bewests. The Trust is a member of the Church House Good Legacy Practice Group, vthich provides policy. best practice athice, theological thinking and practical SUPFQrt to diesan funding officers and the church in general. group of a dozen MemrS rnts up to three times each year. The Trust holds total funds of £6.1m, of vthich £1m are restricted for specifK purtN)ses whereas tIE balance of £5.1 m is both unrestricted and Largely held in Investrnents vthich are relatively liquid. The policy of the Trustees is to bulld a Capltal Fund with a view to the fund providing an increasing amount of reliable income over the long temi. The Trustees have designated the invested unrestricted funds to refLect this intention. T balance of the unrestricted funds represents ¢)Ferational w(Yking capital. The Trustees are Ctent with the fund rA)Sition and designated fund is FEld in relatively liquid investments hence could be called uFon in the event of any shcrt-temi reduction in working capital. For that reason, the Trustees consider a small unrestricted working capital balance to be adequate. Page 7
The Hereford Cathedral Per tual Trust Re rt of tFt Trustees for the Year Ended 31 DeCemtr 2023 ACHIEVEMEirr AND PERFOIUIANCE It Should be noted that the net cuThent asset p)SitiC as at 31 December 2023 iluded accnjed inC(e fr(¥n Cazencwe of £58,X(1 (2022: £58,5LXIi. Legacles A total of £21,7Cfj12022: £562,332) VRS recognised in fonn of knM legacies, of vthlch £10k (2022: E536kl was added to the Capital Fund and £11,70912022: £26k) vrds taken to the revenue acc(xmt. The Trust is vpry grateful to have the following legacies fr(ffn the following estates: - The Late Frederick Bemard Morgan - The Late Myrtle Middleton - The Late Patricia Bisl - The Late Reta Wrftht There Yre no legacies accrued at the end of the financlal year. Substantlal 'fts We are grateful to the following trusts, fcKJndations and (LpanieS for their generosity The Croft Trust The Eimley Foundatlon The Hawthome Charitable Trust The Harley Charity The Provincial Grand Lodge of Herefordshire The hl£Corquodale Charitable Trust The hlumford knorial Trust The Pilling Trust The Rowiands Trust The Willing Adlington Cadbury Trust GM Morrison Charitable Trust Gerefa Charitable Trust Pontrilas Developments Ltd SR & PH Southall Charitable Trust Tatx)r Charitable Trust The Clalre Hunter Charltable Trust In addition, W are extremely grateful to tho* individuals have generSlY donated monfes to the Tnjst, thring the year. £21,195 was donated by many to celebrate Glyn hlorgan's time at the Trust. He wanted this to be the beginnings of an Education FurKI. This Fund will be added to and will go on to provide funding for education Yrk at the Cathedral. Investment Perfornian The market value of the Tnjst's investment px)rtfolio (including cash held for investrntI at 31st Decemter 2023 amounted to £5,795,678 (2022 £5,636,330). Page 8
The Hereford Cathedral Per tual Twst rt of the TNstees for the Year Ended 31 December 2023 FINANaAL REVIEW Details of the financial perfonae and financial Frt)sition of the Trust are set in the following accounts on pages 18 to 30. For the year ended 31 December 2023, rEt expenditure amwnted to £76,757 {2022: E76,798). Grant fundiw amounting to £351,250 (2022: £289,} was made during the year. In 2023 Trust's gross Income was £487,326 {2022: £1,1J)6,404), including legacies of £21,70912022: £562,332>. Total extEnditure for the year was £428,CK)7 {2022: £436,291), vthich included grants to the Choral Foundation of £180,5¢XI 12022: £I74.c)I £18,LXXi 12022: £18,(m) towards Education and £152,750 (2022: £97,5tM)I toward general Chapter running cost5 are included in Note 7. Princ7pal funding sources The Statement of Financial Activities summarises T1)ClIng resources and funds exFtnded and these are analy*d between unrestricted funds and restricted fvnd5. Restricted funds, Inciudlng Choral Investment Fund, are funds subject to StEcific usage declared by donors. Unrestricted funds are expendab at the discreticfft of the Trustees in furtherance of the objectives of the Trust. Subject to the current review, the Tnjst ll continue to devel(w its links with SUrterS Local, national and internatIcal. It wlll continue to strengthen its reiationshlps wlth grant maklng bodes and brlng on board new charltabLe and corporate supporter The Trust's focus will remain on: - Growing its Capital Fund held In Investments tr> provide a secure irg tenn incwie stream - Supwrting the revenue inccthe of the Chapter through various annual regular one-off grants - Funding its own structure and staff4 STRucfuRE. GOVERNANCE AND MANAGEMEKr Governlng thcumert The Trust is a c(Mmpany limited by guarantee and not having any share capital. Trust was incorporated on 8th NOVemr 1995 as company number 3123592 and is registered with the Charity Commission with charity numtser 1051168. The Trust operates in accordance with its Vemorandum and Articles of A5latIC as amended by written Resolution effective 1st June 20CQ and puryjant to the consent of Charity Commissicfft pursuant to Section 64 Charities Act 1993. Page 9
The Hereford Cathedral Per tual Trust Re rt of the Trustee5 for the Year Ended 31 Decemter 2023 STRucfuRE, GOVERNANCE AND MANAGEAIEHr Charity constitution The maximum numter of named Governors {members) is ce hundred. A maximum of elght governors plus the Dean of Hereford {by virtue of his office) are the Tru5tee5. The Trustees manage the l)usiness of the Trust. IndivTduais may be invited by the Trustees to become Govemors. The Trust seeks to maintain an appropriate mix of skills and exwience arn9 the Trustees, esFecially in the area5 of finance. business and governance. cc¥nbined wlth an understanding of the role and mission of Cathedral. Recruitment and appointrnent of new trustees Trustees {vtho are elected by the G(wemors) are recruited from time to time to provlde tFK• skills needed to manage the Trust and to broaden the network of professional ar)d persLThI contacts. The CC4nFJSltis of the Trustee body is reVieEd Feriodically. Trustees must be Govemors (MeMr5) of ttr Trust. Organisational stnKture A Board of Trustees manage the trust. Until 15 2(X)8 certaln FM)wer5 re delegated to the CourKiI of Management; on that date, by written resolution of the Irs. the coU1l of Alanagement was replaced by the Executive, who members are the Trustees. The Trustees are responslbie for the oNErall strategy and financial commitments of the Trust and are supwrted in this by the Chief Executive vA)o manages the day-to-day 0rationS of the Tmst. C¢)mmItt consisting of Trustees, and co- opted individuals with special expertise, are appointed frcAn time to time to admlnlster specific areas of Vrk on behalf of the Trustees. While Chapterfs Finance and Risk Committee lY have a statuW duty to advise the Chapter cffi Its accounts and risk, the Trust shares many of its dcKuments (not least its annual accounts and investment reFortsl with the committee a5 to IElp better infom the lh*Ie cathedrdl family on its financial FQSiti(m. The TNst is able to n(Mninate one Trustee, nonnally the Chaimian, to be a memter of the ccmmittee. A separate investment grcAJp, led by a memLEr of the fina[e and risk committee also coordinates an annual meeting with the investment managers for the Chapter and associated charities, the MaFpa hlundi Trust and the PerFetual Trust. The th'c£esan Board of Flnance is also invited to attend as to enable a broad view. The Meeting is held in Hef0rd. Approxlmately six months later, an Infomial meetlng Is trld in Lcmdon with each of the investment managers to maintain an awareness of the then situation. If a signifkant gift is to be invested, such as a large legacy. a separate meeting may be held, either in person or by teLeOne. Regular rep)rts, tDth in print and eleCtr7C are regularly received by VariCS Trustees and Chief Executive. Induction and training of new trustees An induction and training programme is arranged for rth Executive members, tailored to meet t11r indlvidual needs. It typically includes Trustee resp)nsibilities and governance. governing d(ruments. the roles of the Trust and Chapter, the work of the CattEdral. current commitments and future plans. Trustees meet fellow Trustee5 and Cathedral personnel. Key management remuneratl¢)n The remuneraticn of key management is decided trty the Board of Trustees. Page 10
The Hereford Cathedral Per tual Trust rt of the Trustees for the Year Ended 31 DecemLEbr 2023 STRucfuRE. GOVERNANCE AND MANAGEMEKr Related partie5 The Very Revd Sarah Brovm teCan Lkan 2nd Iktober 2021 and asSed ex-offKio pLice c the board, replacing The Revd Canon Andrew Plper. Her C(fI1Cts are as previously that she Is a member of bjth the Trustees of the Trust and Chapter. DurSng the year, prc(esses are in place vthere all grants to Chapter are recorded in the Chief Executive's reFrfJrt to Trustees, alg with identifying any payments likely to be made before the next Twstees. meeting. so Trustees are aware of what has been paid to the Chapter during each Friod. Any payments are confimied in advance vtherever POS5ible. Rfsk management The Trustees continue to monitor the major risks whKh Trust faces arKI seek to reduce those risks. At present in this uncertain economic climate there are risks with fundraising. LOr incwje from investJnents affect5 Trust and also the donors to trn the Trust applies for grants. There is a risk that the Trust is unable to raise sufficient funding to meet the aspirations of the Chapter to Cer its ovm running costs. A rnajor risk is the performance of the Trust investment rtfoliO and the income frc¥n it. Cornffnts on this are contained In the Financlal Review REFERENCE AND ADMJNISTrAThE DAlLs Registered Company number 03123592 (EngId and Wales} Reglstered Chartty nwnber 1051168 Registered office 5 College Cloisters The Close Hereford Hereford5hire HR12 Page11
The Hereford Cathedral Per tual Trust Re rt of the Twstees for the Year Ended 31 December 2023 Trustees Revd Canon Sarah Brovm Julia Budd Charles De Rohan Katherine Gamier Harvey Nat Hone Richard Banks Patron HM King Charies111 VfctrPreslderts The Lord-LTeutenant of Herefordshire (Mr Edward Harley OBE) The Lord-Lieutenant of Shropshire IIArs Anna Turnerl The Dowager Countess of Darnley CVO Sir Thomas Dunne KG KCVO Slr Algernon Heber-Percy KCVO Key management personnel Georgina Miller Company Secretary Georgina Miiier Audltors Thorne Widgery kcountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS Solicitors Farrer & Co LLP 66 Lincoln's Inn Fields LCdOn WC2A 3HL Gabbs Solicitors 14 Broad Street Hereford HR4 9AP Advisers Cazenove Capital hlanagement 12 Moor Street Lond EC2R6DA Page 12
The Hereford Cathedral Per tual TNst rt of the Trustees for the Year Ended 31 December 2023 REFERENCE AND ADAIINisfRATIVE DEfAILS Bard(ers Lloyd5 TBS plc 8 High Town Hereford HRI 2AE The Central Board of Finance Senator House 85 Qn Victoria Street EC4V STATEMEKf OF TRUSTEES. RESPONSIBIUTIES The trustees (who are also directors of The Hereford Cathedral PertUaL Trust for the purposes of company law) are reswnsibLe for preparing the ReFXrt of the Trustees and the financial statements in accordance with applicable law and United Kingd¢)m Accc4Jnting Standards (United Kingdcln Generally Accepted Accounting Practice). Company law requires the trustees to Ppare financial statements for each financial year V#hich give a true and fair view of the state of affairs of the charitable company arKI of the inc(Jning resources arKI applicatic of resources, including the income and expenditure, of the charitsbLe company for that Feriod. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them cc¥)Si5tentiy; observe the methods and principles in the Charity SORP. make judgements and estimates that are reasonable and ent. prepare the financial statements on the going concem basis unless it is inapprwiate to presume that the charitable CpanY will ccfitinue in twsiness. The trustees are responsible for keeping protr accounting records vthich disclose with reasonable accuracy at any time the financial F4)Sition of the charitable c(npany and to enable them to ensure that the financial statements comply with the Cc4npanies kt 2C(i6. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other 7rregularities. In so far as the trustses are avRre: there is no relevant audit infonnation of vthich the charitable CUnpanS auditors are unaware" a the trustees have taken all steps that they ouO)t to have taken to make themselves aware of any relevant audit information and to establish that auditors are aware of that infonnation. ACKNOWLE[EMENTs The Trust greatly appreciates the very generous suptxyt of many individuals. Trusts and organisat70ns, the close co-operation Vth Chapter and the work of the catIdra1 volunteers. It owes a particular debt of gratitude to its staff. This report has been prepared in accordan with the SFecial provisi5 of Part 15 of CcKnpanies Act 20C6 relating to small companies. i&.l.¢..114- Approved by order of the board of trustees c¥)........ ..and Sied on its behalf by: MrNH1e- Page 13
rt of the Inde ndent Auditors to the MeMrS of The Hereford Cathedral Per tual Trust Opinion We have audited the financial stateTrEnts of The Hereford Cathedral PerFEtual Trust (the charitable cwipany.) for the year ended 31 tkcemier 2023 which ccffiprise the Statement of Financial A£tivities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accwnting poitles. The flnancial reporting framework that has been applied in tttir Weparatic is appiKabie law United Klngdom A£cnting Standards (United Kingdom Generally kcepted ACc(nting practi). In q)inion the financlal statements: glve a true and fair VTew of ttr state of the charitsble comFonrfs affairs as at 31 December 2023 and of Its incoming resources and applicaticm of resources. including its Incme and exndIture, for the year then ended; have been properly prepared in CordarKe with United Kingd(Jn Generally Accepted Accountlng Practlce. and have been prepared in accordance with requirerynts of the C(¥npanies A£t 2CIY). Basls for oplnlon We conducted our audit in accordance with Internaticrflal Standards on Audltfng IUKI IISAS (UKII and applicable law. Our resFonsibilities under those standards are further described in the AudTtors' respx)nsibilities for the audit of the financial statements sectlon of our repjrt. We are indeFtndent of the charitable company in accordance WTth the ethical requirements that are relevant to c>ur audit of the financial statements in the UK. including the FRC'S Ethical Standard, and have fulfllled ¢wr other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and apprwiate to provlde a bas15 for our opinion. Conclusions relating to going Conrn In auditing the financial statements, have COTKluded that trustees. use of the going concem basis of accwnting in the weparation of the financial statements is apwopriate. Based on the yrk V have perfornd. we have not identIfd any material CertaIntleS relating to events or conditions that, irKlividually or collectively, may cast significant doubt on the charitable cornpany's ab7lity to continue as a going concern for a period of at least t1ve months fr(Kn en financial statements are authorised for issue. Our reswnsibilities and the responsibilTties of trustees with respect to going ¢(Cern are descriLEd in the relevant secticrf)s of this reFQrt. Other Informatfon The trustees are responsible for the other informaticn. Tr ottEr informatTon comprises the informatlon included in tl Annual Rewrt. other than the financial statements and our Rer of tl* IndeFendent Auditws tPEreon. Our opinion on the financial statements does not cover the other inforniation and, except to the extent OtherVSe explicitly stated in our report, V do not express any form of assurance conclusion thereon. In connection Vth 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 OdrWIse aptEars to be materially misstated. If we identify such material inconsistencies or apparent material mlsstatements, are required to detennine vthether thls gives rise to a material mi55tatement in the financial statements themselves. If. based on hDrk we have perfced, conclude that there is a materlal mlsstatement of this other inf0nnat1c, are required to rep)rt that fact. We have nothlng to rep)rt Tn thTS regard. Matters on which we are required to report by exception We have nothing to report in reyct of the following matter5 where Charities (Acccunts and Rep(xts) Resviations 2CQ8 requires us to rewt to YOU 7f, in our opini. the Inforniatlon given In the Rert of the Trustees is irKonsistent In any materfal resrt wlth flnanclal statements; or the charitable company has not kept adequate accounting records. or the financTal statements are not in agreement with the CcUnting records and returns. or W have not received all the Informatic and explanati(5 we require for our audit. Page 14
rt of the Inde ndent Auditors to the lemr5 of The Hereford Cathedral Per tual Trust Responslbllftles of trustees As explained more fully in the Statemeyt of Trustees. Resp)nsibilities. the tteeS (who are also the directors of the charitable cffl)pany for the purpx)ses of company law) are reSFK)nsibie for the preparation of the financial statements and for being satisfied that they gfve a tn and fair view. and for such internal control as the trustees detemiine is necessary to enable tkE preparati( of finarKial ststements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, trustees are resnsIble for assessing charitable c(xnpany s ability to continue as a going concern, disclosing, as appiicabie, matters related to going concern arKI using the going c¢)ncem basis of accounting unless the trustees either intend to liquidate the charitsbie ccffipany ¢y to cease operati¢)ns, or have no realistic alternative but to do so. Our responslbllltles for the audit of the financial SLIt We have been aFwinted as auditor5 under Sectirm 144 of the Charities kt 2011 and retth in accordarKe vrith kt and relevant regulatN)ns made or having effect tlEreunder. Our objectives are to obtaln reasonalAe assurance atx)ut vthether the financial statements as a vhK)le are free frc material misstatement, vthether (kn to fraud or error, and to issue a Report of the Independent Auditor5 that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit ccmducted in accordance with ISAS IUKI will always detect a material misstatement when Tt exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reascrf)ably te exrEcted to influence the economK decisions of users taken on the basis of tse flnancial statements. The extent to which our pedureS are capable of detecting irregularities, including fraud is detailed low. In identifying and asse55ing risks of material misstatement in ¥ct of irregularities, including fraud and non<ompliance with laws and regulations, considered the following: . the nature of the industy and sector, control envIr(vnent and business kErfcffman - results of our enquiries of management about their own identification and assessment of the risks of irregularities any matters we identified having obtained and reviewed the p)licies and prixedures relating to: identifying, evaluating and canplying with LavS and regulations and whether they were aware of any instances of non-CLynpliance - detecting and reSP(ding to the risks of fraud and wlEther have knowledge of any actual. SuSted or alleged fraud - the internal ctrolS established to mitigate risks of fra or non-Cnpl7ance lavé5 arKI regulations - the matters discussed among the audit engagement team and involving internal specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud As a result of these procedures V Cl$7ded opp)rtunities that may exist within Organisatic for fraud and identified the greatest px)tentlal for fraud in irKome, vknich was raised as a key audit matter in the current year. common with all UK audits we are also required to perform specific prc£edures to resp)nd to the risk of management override. We also obtained an understanding of the legal and regulatory framevth the organi&itsn qxrates in, focusing on provisions of hose lav and regulations that had a direct effect on ttKk determination of material amnts and disclosures in the financial statements. The keys Lav*S and regulations we considered in this context incllxle the Companies Act, Charities Act and Charities SORP and tax legislation. In addition W c(SIdered wovisions of other lav and regulati1$ that do not have a direct effect on ttrE financial statements but c(Thpliance with which may tE fundamental to the organi5ation's ability to operate. These include health and safety. Page 15
rt of the Inde ndent Auditors to the Memters of The Hereford Cathedral Per tual Trust In addition to the at¥)ve, our procedures to resp)nd to risks identified inclle the fo11thng. reviewing the financ7al statements disclosure5 and testing to supyting dumentati( to assess compliance with provisions of relevant laNv5 and reguLitions descrIt as having an effect in the financial statements enquiring of management concerning actual and tentIal litigatic claim5 perfomlng analytical prc(edures to identify any uwsual or unexpected relatishiPS that may indicate risks of material misstatements due to fraud - reading minutes oof meetings of those charged with gOVernae in addressing the risk of fraud through management override of controls. testlng the approprlateness of journal entries and other adjustments. assessing with their judgernents made in making accounting estimates are indicative of a potential bas" and evaluating business raticfftale of Y signrficant transactions that are unusual or outslde the nomal course of tyJsine55. We also ccmmunlcated relevant Law5 and reguiatTons and wtential fraud risks to all engagement team members, including internal specialises and remained alert to any indications of fraud or non<ompiiarKe with laws and reguLations thrhOt the audit. A further descrlptlon of our resrAMsibllltles for audlt of the fknanclal statements is located on the Financial ReFrfXting cOu7l.5 vbS1te at vfiyw.frc.org.uk/auditorsresponsibilities. This description fc*Ths part of our Report of the Independent Auditors. Use of our report This report is made solely to the charitable ccmpany's tntees. as a b)dy, in accordance with Part 4 of the Charitie5 (Accounts and Reports) Regulations 2(K18. Our audit vKKk has been undertaken so that V+E might state to the charitable company's trustees those matters V are required to state to them in an auditors. report and for no other purpose. To the fullest extent permitted by law, we do not Cept or a55ume respc51b1I7ty to anyor)e other than the charitable company and the charitable company s trustees as a body, for our audit V•vrk, for this report, or for tIE opinions V have fomied. tsj, Thorne Wldgery Ac untancy Ltd Charted Accountants Statutory Audftor5 Eligible to art as an audftor In terms of Section 1212 of the C(xnpanies Art 201)6 2 Wyevale Business Park Kings Acre Hereford Herefordshlre HR4 7BS Date: ... Page 16
The Hereford Cathedral Per tual Trust Statement of Financial Actpiities for the Year Ended 31 Decemter 2023 31.12.23 Total funds 31.12.22 Total funds Unrestricted funds Restricted funds Notes INCOME AND ENDOWMEKfs FROhl Donations and legacies 106,530 125.230 231,7tLI 752,523 Other trading activltles Investment income 11,346 206,CQ) 11,346 244,220 13,417 240,464 38,211 Totsl 323,885 163,441 487,326 1,(M)6,404 EXPENDITURE ON Raising funds 28,467 30,053 76,798 Charitable attivities Grantmaking Support costs 213,11 138,144 351,250 359,493 Total 288,2TI 139,730 428,(KJ7 436,291 Net gainslllosses) on investments 145,803 23,715 169.518 {592, 511 > Nrf INCOMEI{EXPENDttURE) Transfers between fund5 181.411 {289,2> 47.426 289,21K) 228,837 (22,3981 16 Net movement in fun(ts (107,8791 336.716 228,837 (22,3981 RECONCILIAllON OF FUNDS Total funds br¢wght forward 5,251,953 629,322 5,881,275 s,3,673 TOTAL FUNDS CARRIED FORWARD 5.144,074 %6,038 6,110,112 5,881,275 The notes form part of these financial statements Page 17
The Hereford Cathedral Pe tual Trust Balance Sheet 31 December 2023 31.12.23 Total funds 31.12.22 Total funds Unrestricted Restricted funds furKIs FIXED ASSETS Investments 13 4.947,375 848,303 5,795,678 5,636,331 CURREKf ASSErs Debtors Cash at bank and in hd 14 73.191 142,085 73.191 259,820 60.775 206.147 117.735 215,276 117,735 333,011 266,922 CREDrroRS Amounts falling due within one sear 15 {18,577) {18,577) (21,978) NET CURREKf ASSErs 196,699 117,735 314,434 244,944 TOTAL ASSEfs LESS CURREKf UABILMES 5,144.074 966,038 6,110,112 5,881,275 NEf Assrrs 5,144,074 966.038 6,110,112 5,881,275 FUNDS Unrestrlcted funds: General Fund (Revenue) General Capital Fund 16 196,699 4,947.375 5,251,953 5,144,074 5,251,953 Restrlcted funds: Education Fund Fabr Fund Choral Funds (Revenue) Font Project Fund Choral Capital Fund 22,195 4,313 9,595 3.202 535,298 81,227 81.227 858.303 966,038 629,322 TOTAL FUNDS 6,110.112 5,881,275 The charitable company is entitled to exernptic fr{ audit under secti( 4T1 of the C(nPanieS Act 2(YX> for the year ended 31 Decernber 2023. The memters have not deposited noticei wrsuant to Secticn 476 of tIE C(panieS Act 2(XYJ requiring an audit of these flnancial Statements. The notes fonn part of ttrEse finala1 statements Page 18
The Hereford Cathedral Per tual Trust Balance Sheet - continued 31 December 2023 The trustees acknowledge their responsibilities for la) ensurlns that the charitable company keeps accounting reccrds that CpIY with Sections 386 and 387 of the Companies Act 2{y and Ib) preparing financial statements whh give a t and fair view of tTrEt state of affairs of tFk% charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of SeCtic5 394 and 395 and which otherwise c(plY with the requirements of the Companies kt 2(M)6 relating to financial statements, so far as applicable to the charitable company. These financial statements have t*en audited un(kr the requirements of Section 145 of the Charities Act 2011. The fina ial statements Vre apyoved by the Board of Trustees and authcffised for issue on and vme signed on its behalf by: Mr N Honé rus The notes fomi part of tFkhse finarKial statements Page 19
The Hef0rd CadEdral Per tual Twst Cash Flow Statement for the Year Ended 31 Decemter 2023 31.12.23 31.12.22 Notes Gish flows from operating attivities Cash generated from OFrati$ I2.718) 317,762 Net cash (ud inllprovided by OFerating activities 12(XJ,718) 317,762 Cash flows from investing actmtles Purchase of flxed asset Investrnents Sale of fixed asset investments Interest receTved DividerKls received {687,8321 10,171 1,339 242,881 238,618 Net cash provided byl (used in) investing actphtles 254,391 1447.368) Change in cash and cash equivalents in the reporting period Cash and cash equfvalents at the beginning of the reporting perknd 53.673 I129:6(} 206,147 335,753 Cash and cash equivalents at the erKI of the reFJOrtlng period 259,820 206,147 The notes form part of fironcial statements Page 20
The Hereford CatTrdral Per tual Trust Note5 to the Cash Flow Statement for the Year Ended 31 tkcember 2023 RECONauATION OF Nrr INCOMEI(EXPENDrruRE) TO NEf CASH FLOW FROM OPERATING ACTNMES 31.12.23 31.12.22 Net income/(experbditure) for the reporting period (as per the Statement of Finandal Actfvltles) Adjustments for. {Gainlllosses on inveStnts Interest received Dividends received Increase in debtcKs Decrease in creditors 228.837 (22,3981 (169,5181 (1,3391 (242,8811 112,416) 13,4011 592,511 {1,8461 1238,6181 {2,0851 {9,802) Net cash (used in)/provided by operatfons 12Q),7181 317,762 ANALYSIS OF CHANGES IN NEf FUNDS At 1.1.23 Cash flow At 31.12.23 Net cash Cash at bank and in hand 206,147 53,673 259,820 206,147 53,673 259,820 Total 206,147 53,673 259,820 The notes form part of dse fInarlal statements Page 21
The Hereford Cathedral Per tual Trust tes to the Financial Staternents for the Year Ended 31 December 2023 ACCOU1ING pouaES Basls of preparing the firbancial statemerts The financial statements of the charitable ccynpany, whKh is a public Inefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102} 'kcounting and Reporting by Charities: StateTrEnt of Recommenthd Practice applicable to charities preparing their accounts in accordance with the Flnancial Reporting Standard applicable In the UK and Rewbiic of Ireland IFRS 1021 (effective 1 January 2019).. Flnancial Rewrting Standard 102 Tr Financial Rep)rtFng Standard applicable Tn tIE UK and Republic of Ireland, and the Companies Act 2(. The financial statements have tEen prepared under the historical cost conventirm, with the excepticffi of investments vthich a included at market value, as mtsjified by the revaluation of certain assets. The principal area of judgement and estimatkn uertaInty relates to the assessment of legacy inc(xne receivable in line with the pjlicy set out tEIow. Income Ail inccme is recognised in the 5taternent of financial ktiVTkne5 once the charity has entitlement to the fds, It is probable that the InCle VlI ke received and amJJnt can be measured reliably. Income from government and other grants, vknether 'capital' grants or 'revenue' grants, is recognised vn the charity has entitlement to the funds, any perfomiance conditions atthed to the grants have teen met, it is probable that the inccyne will be received and the amnt can be measured reliably and is not deferred. For legacies, entitlement is taken as the earlier of the date on vthlch elther: the charity TS aware that probate has LEen granted, the estate has teen finalised and rtification has teen made by the executorls} to the Tnjst that a distribution will be made, or vknen a distribution is received from tPE estate. Receipt of a legacy, in vthole or in part, Is only considered probable V the amlwnt can be measured reliably and the charity has teen notified of the executorfs intention to make a distribution. Vlhere legleS have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recogniticffi have not been met, then the legacy is treated as a contingent asset and diloSed Tf material in the notes to the accounts. Interest on funds held on deposit is inclLKled vthen receivable and the amount can te measured reliably by the charity" thls is nonnaLly upon notification of the interest paid or payable by Bank. Expenditure Liabilities are recognised as extEnditure a5 St as there is a legal or constructive obligatlon c(ThmittTng the charity to that expenditure, it is probable that a transfer of eConniC benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accnjals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attribjted to partKular headings ttrEy have been aiiocated to activities on a basis con515tent with the use of resources. Grants offered subject to conditions vthich haNE not been at year end date are noted as a commitinent but not accwed as exFenditure. Allocation and apportiorffient of c¢ysts Support costs are those functions that assist the work of the charity but do not undertake charitable actTVitie5. SupFK)rt costs include office costs, finarKe pe)nDe1, payroll and governance costs which supp)rt the Trusts actfvities. These costs have been allocated betvn the cost of raising funds and expenditure on charitable tivities. Tanglble fixed assets TangitrAe fixed assets costlng more than £1,(W net are capitalised and are stated at cost. Depreciati is charged try equal annual instalments ccynmencing with the date of acquisition at rates estimated to write off their cost or valuation less any residual value over exFeCted useful lfves vA)ich are as follows: Fixtures and fittings - 4 JEars Page 22 continued...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - cCtinUed for the Year Ended 31 Decemker 2023 Accoutrm pouaES- contlnued Taxation charity 15 exempt fr(¥n corporation on its charitable tiVitIeS. FurKI accourtir Unrestricted funds can be used in accordance with the charitsble objectives at the discretion of the trustees. Restricted funds can only be used for particular restrKted pJrrM)ses within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for partKuLar restrKted purposes. Further explanation of the nature and pUrse of each fund is included in the notes to the financial statements. Penslon costs and other post-retlrement beneffts The charitable company operates a defined Contri1tIC pension scheme. ContriLxrtions payable to the charitable company's Fension scheme are charged to the Ststerrpnt of Financlal ktivities in the period to which tFy relate. Debtors Trade and otsr debtors are recognised at the settLement amount d. PrePats are valued at the amcwnt prepaid. Cash at bank and in hartd Cash at bank and cash in hand include5 cash and stmrt term hithly liwid inveslJnents with a short maturity of three months or less from the date of acwisition or Oning of the dep)sit or similar account. Credltors and provision5 Creditors and provisions are rffognised knl)ere charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the Obligatic can measured or e5tirnated reliably. Creditors and provision5 are normally reCOlSed at their settlement amount. Pension costs and other post-retlrement Ix4rfft5 The charitsble company operates a defined C(tribution Fension scheme. COntritic5 payable to the charitable companys nSIOn scheme are charged to the Statement of Financial Activities in the peri to which they relate. DONATIONS AND LEGACIES 31.12.23 Total funds 31.12.22 Total funds Unrestricted fuThJs Restricted funds Gifts oCatic5 Gift aid Legacies 21.XI 67,203 10,688 7,239 89.9X) 97,158 16,463 28,239 83,1(M) 96,CM)3 11,088 562,332 29,955 21,C 106,530 125,230 231,7 752,523 Page 23 c0ntinld..-
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - c(tinl for the Year Ended 31 DecemLEr 2023 OTHER TRADING AcnvmES 31.12.23 Total funds 31.12.22 Totsl funds Unrestricted Restricted funds Events 11,346 11,346 13,417 INVEsfMENT INCOME 31.12.23 Total funds 31.12.22 Total fLmds Unrestricted stricted fd5 furKIs Dividend inc<)me . (Cazenove) Interest receivable 204,670 1,339 38,211 242,881 1,339 238,618 38,211 244,220 240,464 RAISING FUNDS Ratslng donatlons and leycles 31.12.23 Total funds 31.12.22 Total funds Unrestricted funds RestrTCted funds Staff costs Direct fundraising exFenses Promotional materials SupFK)rt costs 22,387 29,668 16,774 16,774 3,291 3.291 14,853 20.140 20,140 66,958 Investment management costs 31.12.23 Totsi funds 31.12.22 Total fun(ts Unrestricted fwKIs Restricted funds PortfolTO management 8,327 9,913 Aggregate amounts 28,467 30,053 76,798 Page 24 continued...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - c¢tInUed for the Year Ended 31 tÈcemter 2023 CHARITABLE AcfNmES cosrs Grant funding of actr4itie5 (see note 7) Supwrt costs (see note 81 Direct Costs Totals Granbnaking Support costs 351,21 351,250 46,704 18.970 27,734 18,970 351,2%) 27,734 397,954 GRAKfs PAYABLE 31.12.23 31.12.22 Grantmaklng 351,29) 289,5¢XI The total grants paid to InstitutilS during the year vms as foll 31.12.23 31.12.22 Choral I I+51C - Choral Foundation grants Education - EdLatIon grant Other - Gera1 Chapter running costs 180,5Q) 18,LKK) 152,7) 174,1)Xi 18.L) 97,500 351,250 289,5CO SUPPORT COSTS Goveman htsnagement Totals Raising donations and legacies Support costs 3.291 21,354 3,291 27,734 6,380 24,645 6,380 31,025 NEf INCOME/(EXPENDrruRE) Net incomellextrnditure) Is stated after chargingl(crediting): 31.12.23 31.12.22 Auditors. remunerati Page 25 Contin1...
The Hereford Cathedral Per al Trust Notes to the Financial Statements - ccmtinued for the Year Enthd 31 DeCeMr 2023 10. TRusfEES' REMUNERATION AND BENEFrrs There We no trustees. remuneration or otsEr LEfits for the year en(kd 31 December 2023 nor for the year en(d 31 December 2022. Trustees. expenses There were no trustees. expenses paid for tFE year ended 31 Decemlxbr 2023 nor for the year ended 31 Dember 2022. srAFF COSTS 31.12.23 31.12.22 Wages and salaries &xial security costs Other pension costs 17,733 211 1,026 67,718 1,179 6,740 18,970 75,637 The average monthly numter of employ$ during the ar was as follo. 31.12.23 31.12.22 A<kninistrati No employees received em<Auments in exce of £60.LU). The key management personnel of the Trust compri* the unremunerated trust5 and Chief Executive. The total employee benefits of the key management personnel of the Trust, including empluyerfs pension and natI(al Insurance contributions, were ENil12022: £76,620). 12. COMPARATIVES FOR THE sfATEMEKf OF FINANaAL AcfMTIES YEAR ENDED 31 DECEAIBER 2022 Unrestrlcted funds Restrlcted funds Totsl funds INCOME AND ENDOWAIEKfs FROM DonatiCS and legacies 648.221 104,302 752,523 Ot¥r trading activities Investment inc(The 13.417 203,184 13,417 240.464 37,280 Total 864,822 141,582 1,c,404 EXPENDrruRE ON Raising fund5 75,224 1,574 76,798 Charltable actfvftles Grantmaking Support costs 167,493 192,0(M) 359,493 Total 242,717 193,574 436,291 Net gains1{105sesl on investyrthts 1498,8461 (93,665) (592,5111 Ntr INCOMV{EXPENtfftlRE) 123,259 {145,657) {22,3981 ccntinued... Page 26
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - contind for the Year Ended 31 Decernr 2023 12. COMPARATIVES FOR THE sfATEMEKf OF FINANaAL AcrivmES - contlnL*d Unrestricted funds Restricted funds Total funds RECONCIUATION OF FUNDS Total funds brought fonyard 5.128,694 774,979 5,¢a)3,673 TOTAL FUNDS CARRIED FORWARD 5,251,953 629,322 5,881,275 13. FIXED ASSEf INVEsfMEltrs Llsted investments MARKEf VALUE At 1 January Z023 Disp)sais Revaluat15 5,636,331 110,1711 169.518 At 31 Decemter 2023 5,795,678 NET BOOK VALUE At 31 DeCeMr 2023 5,795,678 At 31 Decemter 2022 5,636,331 There here no investment assets outsi(k UL Cost or valuation at 31 December 2023 is represented ty: Listed investments valuati In 2022 Valuation in 2023 5,636,331 159,347 5,795,678 14. DEBTORS: AMouKfs FALUNG DUE WIThIN ONE YEAR 31.12.23 31.12.22 Trade debtors Other debtors £crued inccAne 4,871 66,920 2,275 73,191 t.T15 Page 27 COntird...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - ccffitintEd for the Year Ended 31 DecemtEr 2023 15. CREDrroRS: AAouKf5 FALLING WE wrfHIN ONE YEAR 31.12.23 31.12.22 Trade creditors Social securfty and other taxes OtIEr creditors Accruals and deferred Incle 5.422 862 4,955 2,642 1,130 13,251 12,197 18.577 21.978 16. MOVEMEITf IN FUND5 Net Transfers At 1.1.23 in flS funds 31.12.23 Unrestricted funds General Fund (Revenue} General Capital Fund 5.251.953 35,fK18 145.803 {5,Cp)0,862 4.801,5TL 196,699 4,947,375 5,251.953 181,411 1289,21K)) 5.144,074 Restricted fund5 Education Fund Fabric Fund Choral Funds (Reven} Font Project Fund Choral Capital Fund 9,595 12,td)) 22,195 4,313 535,298 81.227 (535,2981 81,227 858,303 33,715 824,588 629,322 47,426 289,29) 966,038 TOTAL FUNDS 5,881,275 228,837 6,110,112 Net movement in funds, Included in the ab(ve are as follo. Inccthing Resr¢e$ Galn5 and losses hl(Nernent in funds Unrestricted funds General Fund (Revenue) General Capital Fund 323,885 (288,2TII 35,608 145,803 145,803 323,885 1288,277) 145,803 181,411 Restricted funds Education Fund Fabric Fund Choral Funds (Revenue) Choral Capital Fund (18,C(()I 12,tAxi 1,111 1,111 121,7X) 10,Cn) 1121,730} 23,715 33,715 163,441 (139,730) 23,715 47,4Z6 TOTAL FUNDS 487.326 (Q8,Q)7 169,518 228,837 Page 28 continLEd...
The Hereford CattEdral Per tual Trust Notes to the Financial Statements - continued for the Year Ended 31 Decemkr 2023 16. MOVEMENT IN FUNDS - COntind Comparatlves for movement fn funds Net movement in funds At 31.12.22 At1.1.22 Unrestricted fund5 General Fund (Revenue 5,128.694 123,259 5,251,953 Restricted funds Education Fund Fabric FLmd Choral Funds (Rever) Font Project Fund 3,443 2.428 687.881 81,227 6,152 774 {152,583) 9,595 3,202 535,298 81,227 774.979 {145,657) 629,322 TOTAL FUNDS 5.fX)3.673 122,398) 5,881,275 Comparative net movement in funds, included in the atrthE are as follo. InccAfting reswrces ReSojrS exFended Galnsand losses M(yrfernent in funds Unrestrirted fun05 General Fund (Revenue) 864,822 (242,717) (498,8461 123,259 Restricted fund5 Education Fund Fabric Fund Choral Funds (Revenue) 24.152 774 116.656 (18,(MXJ) 6,152 774 (152,583) (175,574) 193,6651 141.582 (193,5741 193,665) 1145,657) TOTAL FUNDS 1,CKX>,4)4 (436,2911 1592,511 > (22,398) Unrestricted FurKb The Trustees have designated the greater part of the unrestricted funds as a long-term fund represented by investments. The balance of the unrestricted fd represents the operational VKfyrking capital of the Trust. Restricted Funds The Fabric Fund has been esLllshed to provide financial supwrt for the maintenance of the fabric of Hereford Cathedral. The Cfrwal Funds comprise a fund established to provide financial support to the Choral Foundation of Herefd Cathedral in relation to promotion of the religious, musical and secular ecatI( of pupils. the repair, maintenance and neaL of the organ of the Cathedral and the quiSitic and maintenance of its musical 1Xks, manuscripts and the employment of all staff including lay clerks in connection with the Choral Services of the Cathedral. Wlthin the Choral Funds, the Cra1 Capital Fund forms part of the investment portfolio held. The fund has been established to generate Inc to SUprt the chal Foundation of Hereford Cathedral. Gain5 and losses on the investsnent are reflected in tIKk fund balance. Page 29 Cont1nLd...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - ctInUed for the Year Ended 31 Decernr 2023 16. MOVEME1 IN FUNDS . contin1 The Education Fund is used to assist the Cathedral in Nnning its education wogramme vth sch(K)Is, colleges and universitie5, along with the adult sector. Transfers between fund5 Transfers tetwn funds made relate to li) projects subsidised by reStricted fund {ii) the transfer LEtween the I£.teM investment fund and the w)rking capital fund made in cffder to show the long-term investment fund seForately. 17. RELATED PARTY DISCLOSURES During the year, £7,3CO (2022: £1,030) in donations was recefved frc¥n flve tliJ5tee$12022: two trustees) of The Hereford Cathedral Pertetual Trust. Chapter of Hereford Cathedral The Dean of Hereford is a trustee of Fkkreford Cathedral PetUal Trust and presldes Chapter of Hèreford Cathedral. The present Dean, The Very Reverend Sarah Brcvwn has bn a trustee since 2 OctoLrr 2021. Nat Hone, a trustee and Chalmian of the PerFetuai Trust, represents the TNst, as Chair, on the Chapterfs Finance and Risk Committee. During the year £351,2XI12022: E288,(Th)) of grants Wre made to the Chapter of Hereford CattEdral. Details of the grants can it found in note 7. At the year- end £Nil was due to the Chapter12022: £2CKI). During the year £32612022: £6061 of gdS and services re purchased from Chapter of Hereford Cathedral. At the year-end £Nil {£2(Xii was outstanding. Hereford Cathedral Enterprises Limited Hereford Cathedral Entery)rises Limited is a wholly ovffled 5thidiary of Hereford Cathedral of which the Dean of Hereford is a Trustee. During the year £245 12022: £152) of grKds and tvices purchased from Hereford Cathedral Enterprises Ltd. At the year-end ENil (2022: ENil) vrds outstanding. Page 30
The Hereford Cathedral Per tual Tnjst Detailed Statement of Flnanclal Activities for the Year Ended 31 December 2023 31.12.23 31.12.22 INCOME AND ENWmEtrs Donatlons and legacw5 Gifts Donatlcfis Gift aid Legacies 83,1( 96,CK)3 11,088 562,332 97,158 16.463 28,239 231,7f 752,523 Other tradirq actmtles Events 11,346 13,41? Investment Income Dividend income - Icazenove) Interest receivable 242,881 1,339 238,618 244.220 240,4&1 Total Incoming resources 487,326 1,CM)6,404 EXPENDtruRE Raislng donatlons and lepcies Wages Direct fundraising extEnses Promotlonal materlals 22,387 29,668 16.774 16,849 52,105 Investment management costs Portfolio management 9,913 Charltable activities Wages Social security Pensions Grants to institUtiS 17,733 211 1,026 351,2 9,413 1,179 6.74C 289,5C£ 370,220 306,832 Support costs hlanagement Wages Insurance Other professional fees Comwter and software ccsts Postage and statlonery Acc(ntancY OtTrr overtK%ads 35,918 1,507 4,838 3,233 11,989 2,628 1,201 12,595 3,852 24,645 61,314 This page does not frn part of the statutory financial stateirtnts Page 31
The Hereford Cathedral Per tual Trust Detailed Statement of Financial ActiVTties for the Year Ended 31 Decemter 2023 31.12.23 31.12.27 Governance costs Auditors, remuneration Sundries 2(K Total resources extended 428,LM)7 436,291 Net Income 59,319 570,113 This page (k)es not form part of statutory fITralal statements Page 32