REGisfERED C(WANY NUMBER: 03123592 (England and Wa) REGisfERED CHARITY NUMBER: 1051168 of Twstees and Financial Statwnwts for the Year Ended 31 Decemkr 2024 The Herefd atr Trust Thorne WM*ry kcountancy Ltd Chartered Accountants Statutory AAKlitors 2 Wyevale Business Park Kings Acre Hereford Herefordthi HR4 7BS
The Heref(d Cathedral Per tual Twst 1 Cecemter 2024 Contents of the Financlal Statements for the Year Ended 31 t*mber 21J24 Chaiman's Rewt I to 3 ReFrf)rt of the Trustee5 4 to 12 Report of the Independent AditorS 13 to 15 Statement of Financial ktfvities 16 Balan SIet 17 to 18 Cash Flow Statement 19 Notes to the Cash Flow Statement 20 Notes to the Financial Statement5 21 to 30 Detailed Statement of Financial ktivities 31 10 32
The Hereford Cathedral Per tual Trust CHAIR'S REPORT for the ar ended 31 Decemter 2024 This is my sixth rewt to the Gover5 Sin beir¥ elected Chair of the Herefo Cathedral PertUal Trust I'the Tt-). The TTu5t'5 prime g(Ail 15 to txAid a cawtsl fimd for Intment to prothKe a predictable irKome. So, we tend to look at world affairs in that light. My previous re have refeed to world turnw)il and horror. It seems to have got worse. In additlon to wars, old and rEw, we now have ecoThJmK instability. The stock market5 have teen volatile but ccmsidered over the longer tenn, remarkably resilient. Infiati was our concem but that has been Managed well {the recent tariff war may change thi5). The Trustees have steadfastly kept their eye5 on the distant Iw)rizcfft. A retM)rt was cc#nmissioned to review our investment icy. This has confirrned that a V11-diVersIfled, intemational ewity Portfolio of well managed companles by respected p)rtfolio managers have achieved our inVestEnt objective of inflation plus 4% over a 11X) year plus time horlzon, spannlng worse turmoll than we are seeing t(Jay. h44)re is said in TnIse retM)rt abL cwr investment wlicy. The Tnt'S rficiary is solety Chapter of Hereford Cathedral in dae with its charitsbie d)jective% The Cathedral continue5 to be a beac( of light to the DicKe for the Christian faith, rnusic and culture of the highest quality. Imwrtant occasions are marked by sClal services throuthrArt the year. One such should be singled out. On May 21 this year, a service of thanks8iviTha was held for the life of Sir ThnaS tnne KG KCVO JP. ce of the Trust's founding fathe who died on 6 January this ypar. One cannot Iwerstate the contribjticm made by Sir Thomas to the communities that he Served. It is doubtful that thi5 Trust w(Id exist WItht his invoLvement from its inptI.on. We thank God for his service. Their Royal Highnesses, the Duke and thjchess of GIouster hOtred the Cathedral in February last year by a visit. The choir sang Servi in 6ayeux Cathedral and L'eglise Sait Pierre in Caen as part of the 80th anniversary of D.Day. Back In Herefordshlre. the Cathedral has a ctInUoUS pr(wamme of Servi. concerts. cultural events, esFcially in connect7 with t1 Mappa Mundi, chained library and the many wonderful artifacts. Of partKular joy to this chair of trustees was the perf0rnme of Bach's MattheN'S paOn in March this year (with many thanks to the William Adlington Cadbury Trust for their SFonsor5hip). We are very fortunate to be able to prothce such a high standard of performance for this and all that the Cathethal does. Last year, referen was mats to difficultle5 In cruItMent for the dwirfs trEbie tine. Althwgh th'5 15 likely to contin longer terrn, in 2025 recruitment has been a pleasant SUryYi5e in the (wality and quantity of applKants. The North dwr {BLKJth porch) w0jt is finiS1d and is mh m(Ye welcLNning to visitors than fOre while also keeping the heat in. The move of the font from the 5th aisle to Its rightful place at the ntre of the nave at the West end is underway. Both wojects have been finarKed funds raised by the Trust for the purw5e. It IS SU88ested that readers may be interested in readwig the annual aCcnts f Chapter vthich can be found on the Cathedral vthite. Cathedral faces considerable challerqes. The fabric of the Cathethal never stops demanding attentx)n. The roof of the nave keeps the rain out by dint of rnastK aFpiied by the Cathedral architect. The ceiling of nave has suffered from previous rain ingres5 and hEII as being darkened by dirt from when the GurTV5, the lovely but not efficient heaters rnt coal. Tlw were converted to gas but there is a threat that ttw will not pass motsrn gas regulations. So, a big nwlti-milllon-pnd project 15 underway to put the nave r(x)f into trM)th ralnproof and treautiful or<kr and fd a way of wam)ing the building without ruing the planet. The Father Willi5 organ is creaking. In partkular, wcwxlen undbOard 7n which the pipes sit through which wind is directed, a splitting, wlth UnftUnate conquerKes. At times. depenthnt on the atm05pheric conditions, parts of the organ bec(%ne unplayable. The solution is a c(Plete dismantling of the organ to reach parts that have not received attention Sin it was rebuilt at the end of the 19th ntUry. This WTII be a very expensive project, currently estimated at £1.5m. As dlfficult is the funding of day to day running of the Cathedral. Costs have been going up. Regulation makes this worse. Income has not kept pace. The Cathe(tral is running at a defKit, and this is projected to continue wItht six figure increases in income or threase5 In expenditure. It is hard to imagine cuttir4 costs that would not undermine crucial parts of what the Cathedral does and cut fjnc(e in the pre5& The current situation is unsustainable. The Cathedral does not have Un$triCted re*rve5 to maintain such deficits for very Long.
The Hereford Cathedral Per tual Trust CHAIR'S REPORT c¢)ntinued for the ear ended 31 December 21T24 The Trust has increased its grant to Chapter to £4KN),I)Xl in the current JEar, from £350,CK)J in the year tefore. This is considerably more than our investment income we derEnd on annual thnation5 from individua15 and funding bod7e5 alongside events to avoid deficits and erosion of ow capital. We are very grateful to all who th)Date and help with event As a result, we are dgetIng tetter than breakeven. We have told Chapter that we aim at least to maintain thi5 level of grant for the next two years. This is trj wpport Chapterfs strategy of f(Lu5 increasing 7ce laThl recruiting the reSrCeS to achieve this}, rather than (trastK cost cuttir8 with all the damage that could cause. If, at the end of 2027, Chapter is still on an unsustainatAe path. a very different ayoach will be required. As signalLed last year, reswnsits'lity for fvnd-raisiThJ for the Trust is now in the hands of the Develow)ent department and they should be thanked for their hard work. They understand that a Trust deficit would undem)ine the sustainability of our grant to Chapter and are committed to avoiding sh an wtC0. A change in the way that we administer the TNst is in train. For some years, this has teen in the hands of Georgina Miller who joined the Trust at a difficult tiTh for relations between Chapter and Trust. Since then. much has changed and there 15 a muth clearer understanding of bthat the relationship beten the Trust as a major Funder and Chapter as the 501e beneficiary should be inde[nnt entities. Meanwhile. Georgina would like to retire from the role of thing everything bar fund-raising. We have decided, bar last minute issues, to wt the administrati(ffi of the TNst back into the hands of the finance department of Chapter. The Trustees would like to thank Georgina for the years of hard work and dedication that she has put into the Twstee. This chair is partKularly grateful for the wwds of athfce and warning that Georgina has given him. May she and her dogs contiNR to thrNe in their new horne. The Tt will focus on its Charilabie Objective5 as errtxth in its °Perpetual". These are set (t clearly in the Trustee report. Much of the grant is made unrestricted so that ttrE Chapter may use it to fund the general njnning of the Cathedral. &xne of the grant is made specifically to supwrt the nwsic and, separately, the ethcation programme. The ultimate goal is to create a fund large enough to provide investment irKome that would cover the cost of the vffjnderful music and education programmes so guarantee their future in perpetuity. Thi5 release other funds within Chapter to cover the general running exFEnses. Turning to the perforMae thring the ar. the following tsbie sthnmarises thè fInala1 rfOnn3n£È of thè Trnst. Year Ended 31st December 2024 Unrestrfcted Restrlcted Restrlcted Restrlcted Choral Fabrk Educatlon Total Revenue Account Income Legacies Donatfons Events General Grants Investment Incowe Other Income IoMe invested in capital 41,010 76,968 13,K29 16,K 213.294 62,5 1,052 103,510 89,170 13,829 514,3CX) 251,697 10,956 194 60, 4,(X? 38.403 37,CK¥) (62,1) 124,152} 186,652) Total revenuè Ir£omè 361.901 109.862 401,052 13,042 885,857 Ex ndlture Grants to Chapter Running costs &Jpport from unstriCted funds 158.() 92.(*JO 65.5 174,(MJl 1,667 I65.5} 209,510 18,(KMJ 559,510 93,T27 Total Expendlture 315,865 109,862 209.510 18,000 653.237 Revenue 5urplu51(deflclt) 46.036 191,542 (4,958 219,813 Invested into capital Unrealised Gainslllossesl Transfer trtween funds Total Capital movement 62,500 12771 24,152 (107) 86,652 240,868 204.296 36.956 214.296 26.956 62.223 24,045 340,324 Net nM)vement of funds NAV at 111 January 2024 NAV at 315t December 2024 260.330 5,144,074 5.404.404 253 765 85,540 339,304 560,137 6,110,112 6,670,249 858,303 885.259 22,195 41,282
The Hereford Cathedral Per ual Trust CHAIR'S REPORT cOntind for the ar ended 31 Decernr 2024 The Trust made a yjrplus on Tts unrestricted Revenue kcount of £74.885 tefore suppcrting restrirted choral fund by £65,805 which is a satisfactory result. The Trust d$ not aim to make large surpluses IAJt the general revenue reserve that has been Ixjilt gives the Trustees Confiden to increase the grant to Chapter for the next two years. The Capital ALcwnt Increa by £340,324 ir£iuding a gew(ws legacy of £62,5LhJ. Unrealld capltal gains are always VlcoMe, we have recently seen how viAatile tlw can be. The Tnt held a full iyogramme of events. Thanks to the generosity of Edward and Taffl5in Clive, another sl5SfUl and fun clay shoot was held at Whitfield. Thanks to the generosity of the William Adlington Cadtwry Trust. rfOrMae$ of J.S. Bach's Matthew Passion were held to full hcseS. The now weil-established Advent service was held in December at the Guards Chapel in LorKI(m, led by Hffefcd Cathedral's class Choir. We are very grateful to all who 've to trt Trtt, both to the IrKthne and Capltal fund5 and we rememEer Vth gratitude those who have left generws legacies. The TNstees have en joined by FIca Galliers-PratL FiTh's car started as a Gratknte Trainee at tPe Bard¢ of England before becoming an equity analyst at various financial security firn, ending at a high level fore doing research for a MP and an executive search firm. kn recently. vRs treasurer and trustee of Age UK Hereford. We are very pleased to have Fiona join the Trustees. Two more Trustees (with a third r)55ible) have acpted invitations to join the Trustees at the forthcoming AGM. Up to now, the queue to replace the chalr has been Short irKleed talt the current chair has agreed to stsy for one more year confident that mh better successor wlll be lurkjng within the new Trustee grP after the AGM. Two Trustees will leaving at the AGM. NKk Harvey Joi the Trust having preV$1Y served on Chapter. brlnglng his entrepreneurial experience to a world not know for that attrite. Julia &Jdd, a scion of the London executive Search world. was immediately nCed crf) by Chapter to help them WTth variiws recruitments. The chair and Trustees cannot thank th) enough for the time and dedication that they have brwght to the Trust. The Trust has a broad range of skills to brlng to trar and it 15 an honour and pleasure to work with them. There is always rocwn to broaden further. We have formalised a numter of comittees to focus on certain aspects. At tirrE of writing these cornrnittees are: Audit Committee PriKe Charles de Rthan (Chair). Rkhard Banks, Nat Hone Investwent ccffimittee Richard Banks (Chair), Prin Charles de Rthan, Nat NominatiTh)s committee Julia Budd Ichair), Nat H(r, KatherirE Gamier Risk Committee Katherine Garnier (Chair), Ficffia Galliers-Pratt. Nat Hor l am very grateful to au the Trustees for their great ctilXrtI( and Gegina Miller, Lwr executive offir rlms the Trust single handed. As mentioned aVe, she is leaving and we shall miss her. Itls the intention of the Trustees, led by the Nominati)$ conwnittee to f(Kus on IN)w rnanage the l*lembership {calLed In the artlcles our Governors and frcrfn whcwn tIE Trustees must te ChnI to help develop the Trust. In conclusion, the Trust is in a healthy Tt70n needs to lId fixther to Wde 5U5talnabLe help for its beneficiary. Nat Hone DL Chair 3 1 Page
The Hereford Cathedral Per tual Trust rt of the Trustees for the Year Ended 31 Decemker 2024 The trustees who are also directors of the charity for the purp)ses of the C(npanies Act 2CQ6, wesent their report with the financial statements of the charity f(K the year ended 31 December 2024. The trustees have adopted the provi5ion5 of Accounting and Rep)rting by Charities: Staternent of Recommended Practice applicable to charitles preparing their accounts in aCcdanCe with the FirkirKial RerMxtw)g Standard appiicabie in the UK and Republic of Ireland {FR5 1021 (effective 1 January 2019). The Trust" throughout this report refers to the Hereford Cathedral Perpetual Trust being trf>th a reglstered company and registered charity, on whose affaits for the JEar ending 315t December 2024 Is the subject of this report. The Trust is regjstered with the Fundraising Regulator and is a ¢Wate wember of the Instltute of Fundraising. OBJECTIVES AND AcnvmES Charltable Objectives The Charitable objective5 as set out in the l•kn(xanthrn and Articles of Association of the Trust are as follows: The object for which the Trust is established is to prLYTh)te the rellsl¢w5 ond charitable work of the Church of Enyland ty providins support for all, or ony, of the charitoble purKX)ses to which the C¢Witular revenues of the Chopter of the Cathedral Church of the Blessed Wirsin Mary aKI St Ethelbert in Hereford (-the Cathedrol") are applicable iluding especially: 1. 7he promotion and mainten0e to a hith standard of chorol serv7ces of the Church of Ensland in the Cathedral (whether simple or elaborate) in such woys as the Bcord of Governors in its absolute dlscretion think fit including (but withwt prejudice to the generality of the foresoins)." pr(¥notion of religious, musicol and secular educotion of pupils attendins ony school in lch the dc<trines of the Church of Ensland is siven and perfom?ance of the choral services of the Church of Ensland is observed,. and olso the repoir. maintenance and renewal of the orsans of the Cothedral the acquisition rtIntenance of it5 musical bcKs and monuscripts," ond the employment of all staff includins loy clerk5, in connection with the Ch(Yal Services of the Cothedrol," and 2 The preservation. maintenance ond develwnent of the Cothedral generally. The Board has agreed the foliowiTr3 rn(we tstailed definition of the education objectives set (Ajt in the hkm(randum of Association: To support the educatiLv701 and interpretational work of the Cathedrnl omongst people of all ase5, in all oreas of its mi55ion and ministry, U5inS the resources of the whole Cothedral Found3t1. This would include. but not exclusively. work with schools, colleges and universitie5" (Klult ethKation, Sunday School, individua15. fomily sroups, visitors and pllsrims. creatirs access and opwtunities In the Llbrary and Archives cnd associated exhibitiL¥7." providins interpretative materiats in womotins the cothedrol o)d its mission. Imd relotlny ChristiGnity to C¢Thtemporary sc(iety.
The Hereford Cathedral Per tual Trust t of the Trustees for the Year Ended 31 December 2024 OBJEcnvES AND AcrivrtlES (contInd) Operations The Trust fulfils its charitable objective by the trovisi(m of funding and services to the Cathethal Chapter. The Cathedral Chapter is the legal entity which own and are resprM)sible fsx the Cathedral and a$lated properties. Their charitable objective is to prlaIM the Gospel of Christ in the City and Dbxe* of Herefd and in the wider world, by serving and inspirGng all th who encrwnter the Cathedral and Its community. The Trust provides fundfn4 and Services in the ftlow?1w ways: The Trnsi is building a long-temi investment furKI lthe-capital Fund) income fr which will provide a stable income to the Trust. This will Contrite to a revenue surplus that can granted to the Cathedral Chapter. Additions to the Capital Fund c(Jne mainly from legacies and gifts. The exact nature of the Capital Fund will depend the wishes of the For Example, they May with their gift to be used for a specific wrwse. TW rnay wish the gift to be treated as an en&)wment. The Trust is flexlble to accommodate a wi(k range of donor rewirements as long as it can do so efficiently. The Trust is very grateful to its regular donors. It seeks to increase nlber of donor5 and ensure that dcyhys are properly inforrned C how their dat1( is used and feel part of the Cathedral community. The Twst holds events to raise mcrfKy for the revenue account. It a150 provides assistance to Chapter for its own funthaising. The Trust also helps to raise the profile of the Cathethal and its works to the wider community, LK>th nationally and internationally. As a result, Hereford Cathedral ha5 SUPPlrtefS ali arnd world. The Trust provides other assistance to Chapter includkng suip)rting project development, crafting projects suitable for external funding and in promoting the Chapter's activities and ovm programmes through Out of the Cloisters. The Twst continues to maintain close relations with other catredrnls. natiffial bodies involved in the management of cathedrals, herftage organf5ation. wrfernmenL Whitehall and varlous Households. The Trust, in partnership wtth Chapter, agrees an annual funding plan. This IludeS revenue suptKsrt of the Choral Foundation and Education Department, along with unrestricted funding in wpkM)rt of staff and core revenue costs, wlth the goal of maintaining. If not increasing, this suprmxt in the fvtu. The Trust also finds fundlng for Cathe(tral events. In gewal, these will be &ry7alier sum5 (less than £10,(KX)) and entire sum, other than clearly identifi'able costs. is passed onto the Chapter. Such a case Is the grant from the W A Ca(ry Charitable Trust in suppfft of the anrnl Holy Vleek perfOrrnan of one of J S Bach's Passions. Public benefit As a charlty re815tered in England and Wales, the Trust rewrts in cdanCe with the Charity Ccffimission for England and Wales. guidance on public benefit and the Charities Act 2011. The Trust has continued to work closely with the Chapter and fundry has been proVi(d to support the Choral Foundation, eOJcational work of the Chapter arKI a Nwnber of faTrNic wojects. ALI the projects have included the engagnt of the general public, as htil as TrElping to protect cwr shared heritage. Volunteers When regulations allow. the Trust uses Volunteers in two ways. Alanbers of the Trustee provide strategic, management. financial and other expertise. joined by other memters of the Board of Govemors and co-opted individjals In dlfferent areas of the Trust's work A wider base of volunteers helps with vari(ws fundraising events. 5 1 Page
The Hereford Cathedral Per tual Trust t of ttrE Trustees for the Year En(kKd 31 DeCeMr 2024 ACHIEVEMEKf AND PERFORlk4PKE Fundralslng The Trusty fundraises primarily thrjgh institutions, tNsts and foundaticffis together with event-based fundraising and Some individual donations. The Trust not engage kn cold-calling or street-ba5ed fundraising or use third party fundraisers and all activities undertaken are directly rn(1tred and controlled by the Trust's staff. It has not received any complaints in the year in cimnection with the prowiety of its fundrai5in8. The Trust is aware of the need to protect tentiaiiy vulnerable donors and in the small number of cases where this is applicable it doe5 $0 through their farnilies. The Trust is registered with the Fundraising Regulator arKI is a corp)rate trember of ttre Institute of Fundraising. Chief Executive is a150 a memir of the Institute. Subject to any specific wishes connected with a it, the first £10,LIXI of any legacy will te taken to the Revenue Account order to mt ttre costs of runnlng the legacy programme and in meeting any immediate financial needs. The balance will invested in the Capital Fund under the guidance of the Investment Ilonagers in consultation with the Trustees. Any legal restriction cffi a bequest will be honoured, althwgh Should there te corKern over the nature or the extent of the restriction and whether the Trust can hOnr the cthditk)n5. this vriii be clarified with the Lxecutors before the gift is dep)sited. In the event of a bequest teing recelved with conditi(5 laid out in a Letter of Wishe¥ th15 will te hOnred as far as w)55ible by the Tnjstees and the Executors kept infornd. The legacy programme manages the relationship with FL)tential benefactors, approwiate professionals and the Executors and families of those indivithals from we have received bequests. The TTUSt 15 a merntr of the Clrch Hse Good Legary Practitr Grajp, vthTch provides wjlicy, best practi a(fvice, theological thinklng and practical supkx)rt to diocesan fijnding officers and the church in general. The grP of a dozen memb&rs meets up to three times eath year. FINANCIAL REVIEW Investrnent Policies The Trustees have wide power5 of investment. Since 1998, its investments have been managed by Cazenove Capital, trading ami of Schroder & Co Lirnited, on a discretionary basls. Rather than running a discrete portfolio of dtrectly held investThEnts. Trustees agreed with Cazenie that the funds shcwld be invested in co.mingled funds managed by Cazenove suitable for charities and held for lry-te. The Cazenove ReSs7b1e Multi.Asset Fund {RhlAFI Oper in Felffup 2020 and is the lY holding currently at CaTrnove Capital. RhlAF alm5 to provide inc(Kne and capital growth in excess of the cSuMer Price Inthx +4% per annum (net of fees) over rolling ten-year perlods, bjt with strict ESG wiicies. Ph14F is also designed SFecifically for charitie5 and 15 authorised and approved by the Charity Commission. The Furmd currendy has eX1)sUre to 23 unrLn8 holdings. The Fund has an explicit responsible investment wlicy. vAth screening aligned with c(MTrn tharity c1xrn$ and environmental, sla1 and govemance analysis, engagement and voting emttdded into equity investment PresS. Cash awaitin8 disbursement for major projects is held in a nUMr of intere5t-tearing bank accwnts or in a suitable cash fund, as apwopriate. ncmMlly with the Church of Engianrfs Centrnl Board of Finance. CaTrnove Capital and Schroders have a dedicated and y11-rAwrCed resprSIble investment team. Tlw have achieved an A+ rating from the UN Principles for Re¥SIble Investment (PRI) in each of the last five yEars. schrockrs are a speaal adviser to the Carbon Disclosure Project. a founding mernber of the instTtutional investor sroup on climate change. a member of the UK Sustainable investnt and tinare aslatiOn and European Sustainable Investment Forum. Ail investments in crxnpanies math by Cazenove cm behalf of the Perpetual Trnst are subject to their ri8orous re¥x)nsibie investment and COrate governance wlicie5. Both aca(kniic research and own experience show that strong ESG management often delivers superior iong.tsmi returns. The appraisal of ESG f¥tors is integrated in our stock and fund selection process. 6 1 Page
The Hereford Cathedral Per tual Trust Re rt of the Trustees for the Year Ended 31 Decemter 24 FINANCIAL REVIEW Investment Pollcles {contInd) Cazenove's corp(xate goVernae and reswisibie investment furKtions have been in existence Sin 1998. A dedicated section of their website sets out related wlicies, voting records. rearch retM)rts and responsible investment revie%y5. For further infom)ation on reswnsible investment, Ple go to: https: 1lwv4w.schroders.com/en15U5tainabilitylcorFxxate-re¥M$ib]lityj For more infomiation on the RKAF, please go to: https: I1wv¥.CaSen0VeCapIta[.coM1UkIcharItieslr-fuTh1Sl Tru5tee5 monitor long-tem Performan carefully. At Least once a year. rewesentatives of the Trustee5 meet with the advisors along w(th representatives of the Mappa And7 Trust. who also use Cazenove Capital and with the Chapter, vtho are also trustees of two other charities, and their separate athisors. Representatives of the diocesan investment committee are also invited as are tIUSt representatives to the dic£ese review meeting. This enable5 trustees to review the perfomnce of its investments cornpared to other investwnt managers. The Trustees C{MISSiOned a full extemal review of Investments and investrnent w)Iky durlng 2IT24. Reserves The Trust holds total funds of £6.67m, of which E1.27m are restricted f(x specific wrtK>ses whereas the balance of £5.4m Is both unrestricted and largely held in investffEnts vknich are relatively liquid. The rM)licy of the Trustees is to Ixtild a Capital FuTrJ WTth a vie*1 to the fund prowding an InCa$ln9 amount of reliable income over the long tem. The Trustees have thsignated the invested unrestricted funds to reflect this intention. The balance of the unrestrKted funds represents operaticffial wcrfking capital. The Trustees are content with the fund wsitiffi and the tsignated fijnd 15 Ild in relatively liqjid investments hence could be called upon in the event of any thort-term rethction in WCking capital. For that reasrm, the Trustees consider a small unrestrlcted working capital balance to be a(ate. It should be noted that the net current asset p)sition as at 31 DeCeMr 2024 included acctved inc(xne frrjn Cazenove of £50,411J) Q023: £58, 5(KII. Legacies A total of £103,51012023: £28,239) wa5 recogn75ed in the fofm of known legacies, of which £62,5C(I was added to the Capital Fund. The Trust is very grateful to have the fdiowing iesacies from the following e5tate&" - The Late David Bateman - The Late David lIe - The Late Esr Price - The Late Mrs M llhite There Vre no legacies aCcrtd at the end of the flnancial star. 71 Page
The Hereford Cathedral Per tual Trust of the Trustees for the Year Ended 31 December 2024 FINANaAL REVIEW Reserves (contlnued) Substantial ifts We are grnteful to the followlng trusts, f(ndatIOnS and c(¥npanies for their gerErosity The Croft Trust The Elmley FOdatiOn The Hawthorne Charitable Trust The Harley Charity The Provlnctsl Grand Lodge of Herefordshire The hCorqui)Jale Charltable TNst The IrnfOrd hmorial Trust The Pilling Trust The RowLands Twst The Wllling Adlington Cadfrry TNst GM Morrison Charitable Trust Gerefa Charitable Trust Pontriias Developments Ltd SR & PH utha11 Charitable Trust Tabor Charitable Trust The CLaire Hunter Charitable Trust The Liyjise Nicholas Residuary Charitable Trust The Jordan F(xJndation In addition, we are extremely qrateful to th0 indivi{klS who have generCS1Y donated monies to the Trust, (Jrlng the year. Investment PerfomMKe The market value of the Trust's investment rAYtfollo (induding cash held for investment) at 31st December 2024 amcwnted to E6,112,99112023: E5,795,678l. Flnancial Posttlon Details of the financial perfomance and fTnancial position of the Trust are set out in the folloMng accounts on page5 18 to 30. For the year ended 31 Decwnter 2024, rEt incne tefore ir•vestnnt gains and1055e5 amounted to £319,269 {2023: net expenditure £59,319). Grant funding aMnting to £559,511 12023: £351,250) was rnade during the year. In 2024 the Trust's gross TncorrE was £9n,507 (2023: £487.326). Total expeIlture for the year was £653,238 (2023: £428.(Ki7). vthich IlUded grants to the Choral Foundation of £174,( 12023: £180,) £18,(QO12023: £18.IJJ)) toward5 Education and £158,C(Q (2023: £152,750) toward general Chapter running costs and £209.511 of fabric Ccffitrilts($ are Incl in Note 7. Prlndpal fundlng sour The Statement of Financial Activities summarises the incoming resources and fund5 exr1ded and these are analysed between unrestricted funds and restrKted furhjs. Restricted funds. including Choral Investment Fund, are funds subject to specifK usage declared by donors. Unrestricted furK15 are expendable at the discretion of the Trustees in furtherance of the objectives of the Trust. 8 1 Page
The Hereford Cathedral Per tual Trust Re rt of the Trustees for the Year Ended 310ecemkr 21n4 FUTURE IUNS Subject to the current review, the Tnjst will cont1rn to develop its links with supporters local, national and internati(xJal. It will continue to Strengthen its relationships with grant making tleS and bring on t)ard new charitable and corwfate supp)rters. The Trust's fiKUS wfll rernain on: - Growing its Capital Fund held in investments to WOVKk a Secure I4 term inccffie stream - Supp)rting the revenue income of the Chapter thrwgh various annual regular and one-off grants Fundlng its own structure and staffing srRUCfURE. GOVERNANCE AND IAANAGEMEKr &)verning document The Trust 15 a company limited by guarantee and not having any share capital. Tr Trust was incorporated on 8th NOvemr1995 a5 company number 3123592 and is registered Yth the Charity Commission with charity nuM¥r 1051168. The Trust operates in accordance with its Alernorandum aThJ kniicles of A5Ciati(l as amended by written Resolution effective 1st June 2(X18 and wrsuant to the c1t of the Charity Ccffjmission puryjant to Section 64 Charities kt 1993. Charfty corstftutkln The maximum nUrnr of named Govemors {memLErsl is Iwndred. A maximum of eight governors plus the Dean of Hereford (by virtue of h15 office) are the Trustee& The Tntstees manage the I51neSS of the Trust. Individuals rnay be Invited by the Trustees to bec(Mne G0venr5. The Trust seeks to maintain an appropriate mix of skills and erience among the Tru5tee5. especially in the areas of finance, business and governance, combined with an understanding of the rde and mission of the Cathedral. Recrultrnent and appolntment of new trustees Trustee5 (who are elected by the Governtrs) are recruited from time to time to provide skilb needed to manaqe the Trust and to broaden the network of professional and rr5(Kl contact& The composition of theTrustee body is reviewed pericdicalty. TNstees must be Govemors (meMrS) of the Tntst. Organtsatlonal 5tructwe A Board of Trustees manage the tn. Until 15 June 21))8 certain wwers were delegated to the Council of Management. on that date. by written resolution of the Ilanbers, the COU11 of Managetrent was repLaced by the Executlve, whose members are the Trustees. The Trustees are re5pJnsible for the overall strategi ar financial commitments of the Trust and are supported in this by the Chief Executive vtho manages the day-to-day operati(ms of the Trust. Committees consisting of Trustees, and co- opted individuals with special expwtise. are apinted fr(n time to time to administer specific areas of Vrk on behalf of the Trustees. While Chapter's Flnance and Risk Committee (lY have a statUtY to athise the Chapter on its accounts and risk, the Trusi shares many of its documents {not leasr its annual accounts and investment rerts> with the c(Thmittee a5 to help better inforni the whole cathedral family on its finala1 FKJSitiC4). The Trust Is able to norninate one Trustee, normally the Chairman, to a memter of the committee. A separate investment grwp, led by a rnemter of the finaKe and risk cw1mltt alxfy cwrdinates an annual meeting with the investment managers for the Chapter and asSlated charities, the hAawa Mundi Trust and the Perpetual Trust. The Di(tew Board of Finance is a19) invited to attend as to enable a broad view. The meeting is held in Hereford. Approximately slx months Later, an infonnal meeting is held in Lon(k)n with each of the investnxbnt managers to rnaintain an awarene55 of the then situation. If a significant gift is to be invested, such as a large legacy, a separate meeting may be held, either in Ferson or by teleFthone. Regular rewts, t()th in print and eiectronK are regularly r1ved by various Trustees and the Chief Executive.
The Hereford Cathedral Per tual Trust Re t of the Twstees for the Year Ended 31 Decemier 24 srRUCTURE, GOVERNAN AND lAANAc4EKr Inductlon and tralnln8 of new trustees •kn induction and training w09ramn is arranged for new ExeoJtTve Mr$, talled to meet their individual Deed5. It typically includes Trustee responsibilitie5 and govemance. goveming dUments, the roles of the Tw5t and Chapter, the work of the Cathedral, current commitments and future plank New Trustees meet fellow Trustee5 and Cathedral Key management rernwration The reffUnerati of key management 15 (kcided ty the Board of Trustees. Related partles The Very Revd Sarah Brown becanE Dean 2nd October 21J21 and aswrned the ex-officio place on the board. replaCg The Revd Can Indrew Plr. Her conflicts ¥e as previwsiy that she is a Ember of both the Trustees of the Trust and Chapter. During the year, processes are in place where all grants to Chapter are recorded in the Chief Executive's rewrt to Trustees, along with iintifyin8 any paYntS likely to Lt made befcre the next Trustees. meeting, 50 Trustees are aware of what has been paid to the Chapter during e&h r*r10 Any payments are confirmed in advance WreVer possible. Risk rnanagement The Trustees continue to mCltOr the major risks the Twst faces and seek to rethre those risks. At present in thi5 uncertain eCLOrniC clirnate there are risks With funthaising. Lower inCce frcffl investments affects the Trust and also the donors to vthorn the Trust aFplies for grant& There is a risk that the Trust is unable to raise sufficient funding to meet the aspirations of the Chapter to cover its ovm running costs. A major risk is the perfOrrnan of theTrust investrnent pxtfolio and the IOrne fr( it. CoThwnents on this are contained in the FinarKial Review 10 1 Page
The Hereford Catredral Per tual Trnst Re rt of the Trustees for the Year En&¥d 31 December 2024 REFERENCE AND ADMINisfRATIVE DEfAILS Reglstered Company number 03123592 (England and WaLes} Re815tered Charlty nUrnr 1051168 Reglstered offl¢e 5 College Cloisters The Clo Fkreford Herefordshire HR12 Trustees Revd Canon Sarah Brov Julia Budd Charles De Rohan Fiona Galliers-Pratt lapwinted 07102125 Katherine Garnier k Harvey Nat Hone Richard Banks Patron HM King Charles111 VlctrPresidents The Lord-Lieutenant of Herefrxdshire {Mr Ethvard Hath CBE) The Lord-Lieutenant of Shropshire {WKs Anna Turner) The Dowager Countess of Darni CVO Sir Thomas t)unne KG KCVO {deSed 6th January 2IT25) Sir Aigemon Heber-Percy KCVO Key management personnel Georgina Milier (unit lY 2024) Company Secretary Ge(gina Milier Audltors Thorne Widgery Accountancy Ltd Chartered kcountants Statutory AKlitors 2 Wyevale PAJslne5s Park Kings Acre Hereford Herefordthlre HR4 7BS Solkltors Farr & Co LLP 66 LincoLn's Inn Fields WC2A 3HL Gabbs Solicitor5 14 Broad Street Hereford HR4 9AP
The Hereford Cathedral Per ual Trust rt of the Trustees for the Year Ended 31 December 2024 REFERENCE AND ADMINisfRATNE DAlLs Advlsers Cazenove Capitsl hlanagement 12 Street Lond EC2R 6DA Bankers Lloyd5TBS pic 8 High Town Herefd HRI 21£ The Central Board of Finance Senator House 85 Queen Victoria Street Lonthn EC4V srATEI•ENT OF TRU5fEES RESPONSIBIUTIES The trustees (who are a150 the clirectors of Ttr Hereford Cathedral Perpetual Tnjst for the wrwses of compary lawl are responsible for preparing the Report of the Trustee5 and the financial statements in accordance with applTcable law and United Kingd(Mn ACCnting Standards (United Kingdjn Generally *£cepted A£counting Prxtice). Company law requires the twstees to wepare financial statements for each finala1 year which srive a true and fair view of the state of affair5 of the charitable company and of the inc(Kning reSrCeS and application of resources, including the incorne and endIture, of the tharitable company that riod. In preparing those financial statements, the trust are rewired to select suitable xcwntlng policies and then apply them cTr)sistentty" observe the methods and principle5 in the Charity SORP: make judgements and estimates that a rea%able and prepare the finala1 statements on the 80in8 COrern basis unless it is inapwopriate to presume that the charitable company will continLE in iw5ine55. The trustees are re1X5]bLe for keeping prow acctIng records which disclose with reasonable accuracy at any time the flnanclal wsltion of the charitable C1panY arKI to enable them to ensure that tlE financial statetnent5 comply with the Companie5 kt 21X)6. They are also reSFs1b1e for safeguarding the assets of the charitable company and hence fc taking reasonable Steps for the prevention and detection of fraud and otttr irregularitie5. In so far as the trustees are aware: there is no relevant audit information of vthich the chwitabie ccmpany's auditors are unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infrnatIOn and to establish that the auditors are aware of that information. The Trust greatly apweciates the very generws 5VPPKrt of many indivithals, Trusts and organisations, the cl co-operation with Chapter and the work of the Catredral v(Aunteers. It owe5 a partKuLir debt of gratitude to its staff. Thi5 reF#Yi has teen prepared in accordance with the stclaI w0visi$ of Part 15 of tke Cc#npanies Act 20Lb relating to small companles. Ig. Vii Approved by orthr of the Lxmrd of trustees on............. ...._..... . and s18ned on its behalf ty. htrNHo ru5tee 12 1 Page
Re rt of the Inde dent AudStors to the Trustees of The Hereford Cathethal Per tual Trust Opinion We have audited the financial statements of The Hereford Cathedral PerrEtual Trust (the 'charitabie company'l for the year ended 31 December 2024 which comrxi StateffEnt of Finala1 ktivitie5, the Balance Sheet. the Cash Flow Statement and notes to the financial statements, including a summary of significant acc(ntIng polldes. The flnanclal reportiTrJ framework that has teen applied in their preparati(m is applicable law and United King(k)m Accounting Standards (United Kingdom Generally Accepted Accounting Practi). In our Opinic the fInarla1 statements: give a tr and fair view of the state of the charitable companys affairs as at 31 December 2024 and of its iorning resources and application of reS(rCes, including its irKome and exFenditure. for year then ended" have been properly prepared in accordan WTth United Kingdom GeTrallY Accepted kcounting Practice. and have teen prepared in accordance with the requ7rements of the Companies Act 20CK>. Basfs for oplnfon We conthcted our audit in accordance with lrternational Stsndards on (UK) (ISAS (UKII and applicable law. resw)nsibllities un(kkr those standards are further descrited in ttre Auditors. reswnsibllltles for audit of the flnanclal statements section of our report. We are in(kpendent of the charitable company in accordan with the ethical requirements that are relevant to our audit of the financial statements in the UK, incLuding the FRC'S Ethical Standard, and we have fulfilled our otlEr ethical reswn5ibilities in accordance with these requirement& We believe that the audit eviden we have obtained is suffkient and approwiate to provKle a basis for our opinion. Concluslons relatlng to golng concern In auditing the financial statements, we ha corKluded that tTUStees Use of the going Conrn basis of accnting In the pparatIOn of the financial statements is apwopriate. Based on the we have perfixmed, we have VKIt identified any material uertaintieS relating to events conditions that. indivithally or collectively, may cast significant doubt on the charitaLle company'5 ability to continue a5 a going concern for a period of at least tVl¥e months from kn the financial stateffÈnts are authorlsed for155ue. Our resp)nsibilities and the reswjnsibilities of the tw$¢$ with re¥tct to going concern are described in the levant sections of this report. Other Infornwtlon The trust5 are responsible for the ottEr infati(. The other infomation comprises infonnation included in the nual Rewrt, other than the financial statements and Retx)rt of the Independent Auditors thereon. Our opinion on the financlal ststements thes r¥)t cover the other inforniation and, eXpt to the extent otherwise explicitly stated in our re[, W ths not express any fonn of assuran conclusion therecw). In connection with our audit of the financial statements, our respjnslblllty Is to read the other infOatIon and, in doing x), consider whether the other inf(Mation is materially irronsistent with the financial statements or our knowledge obtained in t1 audit or otherwise appears to be materially misstated. If we identify such material incon515tencle5 or apparent material misstatements, we are rewired to deterrnine wther this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have wfomed, cOlUde that there is a material misstatement of this other informatlon. we are re(pJired to repcrt that fact. We halt nothing to report in this regard. Matters on which we are requfred to report by exceptlon We have nothing to rewrt in resttct of the following matters vthere the Charities (ACc{nts and Retyxts) Regulations 2(X)8 rewires u5 to rewt to you if, in our opinion". the infcThat1C given in the PEwrt of the Trustees is 1C5}Stent in any material reSl with the financial statements. or the charitable company ha5 not kept adequate accntI records; or the financial statements are not in aweement with the accwnting re¢d$ and retum5: or we have not received all the information and explanaticS we re(yire for wr audit. 13 | Page
Re rt of the Inde dent Audit(Ys to the Trustees of The Hereford Cathethal Per ual Trust Responslbllltles of tntstees As explained more fully in the StaterrEnt of Trustees. P£sp)nsibilitie4 the trustees (vtho are alx) ttrE directors of the charitable company for the purwses of company law) are reSP)nsib for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees detemiine is rceSSary to enable the preparation of financial statefflents that are free frcffl material misstatement, whether due to fraud (Y eor. In preparing the financial statements. the trustees are reSnSIble f assessing the charitable companls abilTty to continue as a goln4 Corern, disclosing, as applicable, matters related to going concem and using the goin8 concern basis of accountlng unless the trustees either intend to liquithte the charitable company (Y to cease operations, or have no realistic alternative but to do so. Our responslbllftles for the audtt of the flnancTal statements We have been appointed as audit(xs under secti 144 of the Charities kt 2011 and rep)rt in accordance with the Act and relevant regulations made or havi effect thereunder. Our objectives are to obtain reasonable a$surae aiwt whether the finarKial statements as a whole are free fr¢yn material mi5stateNEnt, whether due to fraud or error, and to issue a Rert of the Indepenthnt Auditors that includes our opinion. Reasonable assurance is a high level of aswrarKe but is not a guarantee that an audit confknted in accordance vAth ISAS (UK) will always detect a material mIsstateEnt when it exists. Misstatements can arise frcm fraud or error and are considered material if, individually or in the aggregate, tw could reasonably be expected to InflUee the economic decisions of users taken on the basis of these firkincial statents. The extent to whKh our prthre$ are capable of detectiThJ irregularities, including fraud Is detalled below: In identifying and assessing risks of material mi5StatenEnt in respect of irregularities, including fraud arKI non- compliance viith lav+S and regulations, we considered the following: the nature of the irKlustry and sector, control environment and twsiness perfornHnce results of our enquiries of management abt their ovm ilkntif1catio and assessment of the dsks of irregularities any matters we Identlfied having obtained and revievd the pcAlcles and proCere$ relatin8 to: identifylng. evaluating and c(xnpiying with laws and regulations and vthether they Vre aware of any instae5 of non-compliance detecting and resp)ndin8 to the risks of fraud and whether they have knth¥iedge of any actual, suspected or alleged fraud the internal controls established to mitigate risks of fraud or rrf)n-ccThpliance with laws and regulatlons the matters discusd am9 the audit engagement team aThl involving internal specialists, regarding how and where fraud might occur in finarKial statements and arry wtential indicators of frnud As a result of these wocedures. we crffj51thred the OppoTt that may exist within the organisatlon for fraud and identified the greatest p)tential fcr fraud in inc(#YE, vthich was fdi5ed as a key audit matter in the current year. In common with all UK audits. we are also required to [ErfM specific prc(ethJres to reswnd to the risk of management override. We also obtained an untsrstanding of the legal and regulatory fraffwcKk organisation operates in, f(xusing on provisions of those laws and regulations that had a dfrect effect on the detemiination of material amounts and di5cIosure5 in the flnancial Statements. The keys la and regulations we considered in this context include the Ccrfnpanies Act, Charities Act and Charities SORP and tax legislation. In addition, we considered pros1On5 of other lav and regulations that do not have a direct effect on the financial statements compliance with vthich may be fundamental to the Organisati.5 ability to OFerate. Trse include health and safety. In addition to the above, wr[ere$ to res)Id to risks identified Include the following: reviewlng the financial statements disclosures and testing to supwrting dtxumentation to assess compliance with provisions of relevant laws and regulations descritd as having an effect in the financial statements enwiring of management corKernwig Ktual and potential Litigati claims performlng analytical procedures to identify any ufwsual or unexpected relationships that may IndKate risks of material misstatenEnts due to fraud reathng minutes meetings of those charged with governance in addressing the rfsk of fraud through management override of controls. testing the approprlatene5s of journal entries and other adjustments. assessing with t1r judgements math in making accwnting estimates are indKative of a potential bas" and evaluating ts t51 ratiimale of any significant transaction5 that are unusual or outside the Fb)rmal cowse of tSiness. 14 1 Page
Re rt of the Inde dent AditrA5 to the Trustees of The Hereford Cathedral Per ual Trust We alx) corn1nated relevant laws and regUlatiLs and p)tential fraud rfsks to all engagement team memters, including internal specialises and remained alert to any indications of fraud or fMJn-cPl7an(e laws and reguLatiLms throughout au(lit. A further deriptiOn of (Mjr reSp(SibilitIeS for the audit of the financial statements is I{ated on the Finala1 ReIng Councils website at Vh¥w.frc.g.uk/aUd7tor5re¥nnsibllllleS. This description forrns part of r Report of tl Intspendent Auditor5. Use of our report This report ls made s(Aely to the charTtable ComnS tnjstees, as a trf)ty, In accordance with Part 4 of Charities {Account5 and Repts) Regulations 21J)8. 1)Jr audit work has been undertaken so that we might state to the charitable companys trustees those matters we are required to state to t1 in an authtor5' report and for no other purpose. To the fullest extent pemiitted by law, we th) not accept or asyjme resFonsibility to any(M)e otlEr than the charitable company and the charitable cofflpanls trustees as a ldy, for our audit work, for this report, or for the opinions we have fonned. Lka for and on LEhalf of Thorne Widgery AccntancY Ltd Chartered Accountants Statutory Auditor5 Eligible to act as an auditor in terms of SectKJn 1212 of the Companies Act 21XY) 2 Wyevale Business Park K7ngs Acre Hereford Herefordshire HR4 7BS Date: 15 | Page
The Hereford Cathedral Per tual Trust Statement of Financial Activities for the Year Ended 31 Decemlxr 2024 31.12.24 Total funds 31.12.23 Total funds ueStrICted funds Restricted funds Notes INCOIAE AND ENDOWMEKfs FROM Donations and legacEs 134,778 572.203 706,981 231,760 OtsEr trading activities InVeStnt incw 13,829 13,829 251 697 11,346 Total 361.901 610.606 EXPENDITURE ON Raising funds 25,71fl 1,667 27,369 30,053 Charltable actfvltles Grantrnaking Support costs 158.(KK) 401,511 559,511 66.358 351,250 Total 250,(H) 653 238 Net gains on investnEnts 204296 169.518 NEf INCOME Transfer5 between funds 316.137 55,W7) 244,LKN) 560,137 228,837 16 Net movement In funds 260.330 299.807 560,137 228.837 RECONauAnoN OF FUNDS Total funds brought forward 5.144.074 966,038 6,110,112 5,881,275 TOTAL FUNDS CARRIED FORWARD 5,404,404 1,265,845 6,670,249 6 110 112 The note5 form part of these financial statements 16 1 Page
The Hereford Cathe¢tral Per tual Tnjst Balance Sheet 31 December 2024 31.12.24 Total funds 31.12.23 Total funds Unrestricted funds Restricted funds tes FIXED ASSErs Investments 13 5,141,464 971,527 6,112,991 5,795,678 CURRENT ASSETS Debtors Cash at bank and in hand 14 n,984 230,889 26,lJ)O 268,318 98,984 499,207 73,191 259,820 303.873 294,318 598,191 333,011 CREDITORS Amounts falling due within one year 15 {40.933 (40,9331 (18,577) NEf CuRREtr ASSErs 262.940 557.258 TOTAL ASSEfs LESS CURREKf LIABIUTIES 5.404.4( 1,265.845 6.670.249 6,110.112 NEf ASSErs 5,404,404 1,265,845 6,670,249 6 110 112 FUNDS Unrestricted funds: General Fund (Revernje) General Capital Fund 16 262,940 196,699 4 947 375 5 144 074 Restricted funds: Education Fund (Revenue) Fabric Fund (Revenue) Font Project Fund (Revenuel Choral Capital Fund Education Capital Fund Fabric Capital Fund 17,237 195.854 81,227 885,259 24,045 22,195 4.313 81,227 858,303 1 265 845 966 038 TOTAL FUNDS 6 670 249 6 110 112 The charitable company Is entitled to exemption from audit under Section 477 of the Companies Act 2(N)6 for the year ended 31 Decemter 2024. The mernbers have not deposlted notice. pw5uant to secti( 476 of the CoVanieS Act 26 requiring an audit of the flnancial statements. The trustees ackJ)ovAedge their re¥nsibIlit5 for la) ensuring that the charftabie company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2(M)6 and preparing fInarla1 statements whKh give a tNe and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for eKh financial year in accordance with the requirements of Sections 394 and 395 and vthich otherwise comply with the rewirements of the Companies Act 21116 relating to financial staternents. so far as applicable to the charitable ctynpany. Ib) The notes fomi part of these financial statements 17 | Page
The Hereford Cathedral Per tual Trust Balance St - continued l December 2024 These financial statements have t7 audited un(kr the re<wirements of Section 145 of the Charities Act 2011. The flnanclal statements were approved by the Board of Trustees and authorised for Issue on . and were signed on its behalf by: The notes fonrs part of these financial statements 18 1 Page
The Hereford Cathedral Per tual TnJ5t Cash Flow Statement for the Year Ended 31 DecemtEr 2024 31.12.24 31.12.23 Nrtes Cash flows from operatlng actlvltles Cash generated from operations 64,135 2(Kl,718) Net cash provided tyl(u5ed in) operating activities 2LI) 718) Cash flows from Investlng artivitie5 Purchase of fixed asset investments Sale of fixed asset irwestNents Interest received Divi(Ènds retrfved 186,652) 10.207 5,984 245 713 10,171 1,339 242 881 Net cash hxovided by investing Ktivities 175.252 254,391 Change in cash and cash equfvalents in the reporting period Cash and cash equlvalents at the beglnnlng of the reportlng perbd 239,387 53.673 Cash and cash equivalents at the end of the reportln8 perlod 499 207 The notes fomi part of these financial statements
The Pf0rd Cathedral Per tual Trust Note5 to the Cash Flow Statement for the Year Ended 31 December 2024 RECONCIUATION OF NEf INCOME TO NEf CASH FLOW FROM OPERATING AcllviTIES 31.12.24 31.12.23 Net Income for the reporting F)eriod (as per the Statement of Financial Actlvltles) Adjustments for: Gain on investments Interest received Dividends re)Ved Increase in debtor5 Increase/ldecrea5e) in credittKs 560.137 228.837 1240,868) (5,9841 (245.713) (25,793) 1169,518) {1,3391 1242.881) 112,416) Net cash provlded byl(used In) operatlons 2Q) 718) ANALYSIS OF CHANGES IN FUNDS At1.1.24 Cash flow At 31.12.24 Net cash Cash at bank and in hand 259 820 239 387 259 820 239 387 Total 259 820 239 387 499 207 The notes form part of these financial statements 201 Page
The Hereford Cathe(tral Per tual Trust Notes to the Financial Statements for the Year Ended 31 Decemter 2024 ACCOUtrmNG POLICIES Basls of preparfng the financial staternents The financial statements of the charitable c(ffnpany, which 15 a public benefit entity under FRS 102, have been prepared in accordaKe with the Charities SORP (FRS 1021 AcCntIng and Reporting by CharitEs: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Finandal Rep)rting Standard applicable in the UK Republic of Ireland {FRS 102) (effective 1 January 2019).. Financial RerKirting Stsndard 102 The Finala1 Retyxting SLmdard applicable in UK and Republic of Ireland. and the Companies Act 2(K16. The financial statements have been wepared er the historical cost convention, with the exception of investment5 whith are inclu(kd at market value. a5 modified by the revaluation of certain assets. The principal area of judgement and estimation uertaintY relates to the as5e5yt of legacy Inc(me eivable in line wlth Fdicy set out LEISM. G)Ir8 cOnrn The trustees assess whether use of going cOn is appropriate i.e. vthether there are any material uncertaint5 related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concem. The trustee5 make this assessment in respEct of a riod of at least one year from the date of authorisation for issue of the financial statements. The charitsble company has the contind support of it5 bankers and funders and have c(mciuded that company has a&quate resources to continue in operational existence for foreseeable future and there are no material uncertainties abujt the charit¥s ability to continue as a going ccfftcern, tS W ccmtinue to athpt the going concem bas15 of accounting in preparing the financial statements. The board MLi contiwe to NKJnitor and revEw the activitie5 and prode strcmg and clear governance. Income Ail Incomels recognised in the Statement of Financial Activtties once the charity has entitlement to the funds. it is probable that the inccffie will be received and amwnt can be measured reliably. Income from government and other grants, vthether 'capital' grants or'revenue. grants, is recognised when the charity has entitlement to the funds, any perfoThaFKe cditIonS attached to the grants have been met, it is obable that the income vlill be received and the arnnt can be measured reliably and is not deferred. For legacies, entitlenEnt is taken as the earlier of the date on either: the tharity is awa that probate has teen granted, the estate has been falised arKI notification has been made by the executorlsl to the Trust that a distribJtic will be made. or vthen a diStritIOn is received frn the estate. ReceTPt of a legacy. in whole or in part, is (mly C¢51red probable when the amount can be waSured reliably and the charity has been notified of the executor5 intention to rna a diStrition. Where legacies have teen notified to the charity, or the charity is aware of the granting of probate. and the criteria for ItOrne recognitiC have not been met, then the legacy is treated as a contingent asset and disclosed if material in the notes to the acCJnts. Interest on funds held on de$It is irKluded receivatle and the amount can be rreasured relialAy by the charity. this15 normally un notification of the interest paid or payable by the Bank. Expendfture Liabilities are recognised as expenditure a5 soon as there 15 a legal or constructive obligation committing charity to that exFencliture, it is probable that a transfer of econ¢iC benefits will be rewired in settlement and the amount of the obligati(m can te ThEasured reliably. Expenditure is accounted for on an accruals basis and has teen classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to partKular adingS they have been all(Kated to activities on a bas15 conslstent with the use of reSrte$. Grants offered subject to conditifms whKh have not been met at year end date are noted as a commitment t not accrued as exptY)dittJre. Taxatlon The charity is exempt from c0rwat1L tax on its charitsble activities. 21 | Page continLEd...
The Hereford Cathedral Per tual Trust )tes to the Financial Statement5 - contInl for the Year Ended 31 Decemker 2024 ACCOUNTING POLiaES - contlnued Fund accountlng Unrestricted funds can be used in accordance with the charitable objectfrrfes at the dlscretlon of the trustees. Restricted funds can only be used for particular restricted wrposes within the objects of the charity. Restrictions arise when specified by the don(x or when funds are rald for particular restwted purposes. Further explanation of the nature and purpo of each fd is inclu¢d in the notes to the financlal Statements. Penslon costs and other p0Stet1reMent beneflts The charitable company operate5 a defirEd contr1ttIOn pension sctreme. Contributions payable to the charitable ctxnpany's pensicm scheme are charged to the Statement of FinarKial ktivitie5 in the Feriod to which they relate. Tanglble flxed a55ets Tangible fixed assets costing fflore than £1,OQ) Tret are capitallsed and are stated at cost. Depreciation is charged by equal annual instaiments comencing viith the date of acquisition at rates estimated to write off their cost or valuation less any residual value over the expected useful lives which are as follows: Fixtures and Fitting5 - 4 years Investments Investments are stated at market value as at the ikilance sheet date. The statement of financial activities includes the net gains and losses arisir4 on revaluati and disposals throughout the year. Debtors Tra(* and other debtors are recognised at the settlement annt . Prepayments are valued at the amwnt prepald. Cash at bank and In hand Cash at bank and cash in hand irLU cash and short tern) highly liwid investments with a thort maturlty of three months or less fr¢ the date of ac(wisition or Oning of the detK)5it or slrnllar account. Creditors and provisions Creditors and provlsions are reco4nlsed vthere the charity has a present obllgation resulting fr• a past event that will probably regjlt in the transfer of funds to a third party and the amujnt due to settle the obligation can be meayjred or est7mated reliably. credit(5 and pr(Nisi{S are rKThially recognised at thelr settlement amount. Penslon costs and other p)st.retlrement beneflts The d)aritable company operates a defined contribution pension scheme. C(Mtributions payable to the charitable companys pension scheme are charged to the Statement of Financial ktivities in the period to which they Late. 22 1 Page ctInUed...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - continued for the Year Ended 31 DeCeMr 2024 DONATIONS AND LEGAaES 31.12.24 Total funds 31.12.23 Total funds Unrestricted funds Restricted funds Grants Donations Glft aid Legacie5 16.KK) 64.934 12,034 497.500 11.651 552 514,3LX) 76,585 12,586 103 510 89,9(M) 97,158 16,463 231 760 OTHER TRADING AcllviTIES 31.12.24 Total funds 31.12.23 Total funds Unrestricted funds Restricted fund5 Events 13.829 INVEsfMENT INCOAIE 31.12.24 Total funds 31.12.23 Total funds Unrestricted funds Restricted funds Divi(k&nd income - {Cazenove) Interest receivable 207,310 38,4)3 245.713 242,881 251 697 RAISING FUNDS Ralslng donatlons and le8ades 31.12.24 Total funds 31.12.23 Total fund5 UnrestrKted fund5 Restricted funds Dlrect fundraising exFenses Promotional materials Supwrt costs 16,951 16,951 16,774 75 23 1 Page Contin1...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - contin for the Year Ended 31 Decemter 2024 RAISING FUNDS - contlnued Investment management costs 31.12.24 Total funds 31.12.23 Total funds Unrestricted Restricted funds funds Portfolio management Aggregate amounts 25,702 1,667 CHARITABLE ACTIVITIES cosrs Grant funding of activities {see rte 7) gjpport costs (see note 8) Direct Costs Totals Grantmaking Support Costs 559.511 559.511 66.358 17,581 559 511 GRANTS PAYABLE 31.12.24 31.12.23 Grantmaking 559 511 351 250 The total wants paid to institutions during the year was a5 follow5: 31.12.24 31.12.23 Fabric - Deanery and canonical properties Choral l Music - Choral Fndation wants Education - Educati grant Other - General Chapter running costs 209.511 174,(MXI 18.C 180.500 18.{) 152 750 559 511 351 250 24 | Page Contin1...
The Hereford Cathethal Per tual Trust Notes to the Financial Statements - continued for the Year Ended 31 Decemter 2024 SUPPORT cosrs Governance costs anagekrtnt Totals Support costs NEf INCOMEI(EXPENDITURE) Net iOMe/(expendfjtUre)1$ stated after charging1(creditir). 31.12.24 31.12.23 AditorS. remuneration 10. TRusfEES' REMUNERATION AND BENEFrrs There were no trustees, remunerati or other benefits for the year ended 31 Decemter 2024 nor for the year enthd 31 DeceMr 2023. Trustees. expenses There were no trustees, expen paid for the year ended 31 DeCemlr 2024 nor for the year ded 31 December 2023. 11. srAFF COSTS 31.12.24 31.12.23 Wages and saiarles SrKial securlty costs Other pens17 Costs 16,(1)2 17.733 The average monthly of empLow (kning year was as foiiovts: 31.12.24 31.12.23 Administration No employees received emoluments In excess of c60,>. The key management personnel of the Trust Cl1Se the unranunerated trustees and the Chief Executive. The total employee berefits of the key managent person1 of the Trust, incluth.ng employers pensirm and natlonal insurance cCtritIOns, were ENil (2023: CNil). 25 | Page continued...
The Fkreford Cathethal Per tual Trust Notes to the Financial Statements - continLEd for the Year Ended 31 DecemtEr 2024 11 COMPARATIVES FOR THE sfATEAIEKf FINANCIAL AcnvmES Unrestricted funds Restricted fund5 Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 1(16,530 125,230 231,760 Other trading activities Investfnent IncoTh 11,346 206,(K)9 11,346 244,220 38,211 Total 163.441 487.326 EXPENDITURE ON Raising funds 28,467 1,5e 30.(63 Charitable actMtle5 Grantmaking Support costs 213,106 138,144 351,250 Total 288 77 139 730 Net gains on investments 169 518 NET INCOME Transfers between ftinds 181,411 289 290 47,426 289,290 2Z8,837 Net movement In funds 1107.879 336.716 228.837 RECONCIUATION OF FUNDS Total funds Lrought forward 5.251,953 629,322 5,881,275 TOTAL FUNDS CARRIED FORWARD 5 144,074 966,038 6,110,112 13. FIXED ASSET INVEsfMEFs Llsted investments AIARKEf VALUE At 1 January 2024 Additions Dlsposals Revaluations 5,795,678 86,652 {10.207 At 31 December 2024 6 112991 BOOK VALUE At 31 Dember 2024 6 112991 At 31 December 2023 5 795 678 There were no investrnent assets outsits the UK. 26 | Page contin1..
The Hef0rd Cathedral Per tual Trt Note5 to the Financial Statements - contin1 for the Year Ended 31 December 2024 13. FIXED ASSEf INVEsfMEtrifs - continued Cost or valuatlrm at 31 DeCemr 2024 is represented by. Listed Investments valuati in 2024 6 112 991 14. DEBTORS: AHd)UNTS FALLING DUE WITHIN ONE YEAR 31.12.24 31.12.23 Trade debtors Other debtors crued inc(me 4,871 15. CREDITORS: AIAouKfs FALLING DUE wrrHIN ONE YEAR 31.12.24 31.12.23 Trade credit(Ys Social security and other taxes Other credltor5 Accruals and deferred InC(e 2,293 5,422 95 96 16. MOVEMEPff IN FUNDS Net Transfers between funds At 31.12.24 At 1.1.24 in funds Unrestricted funds General Fund (Revenue) General Capital Fund 196.699 4,947,375 111,841 204,296 145,6001 (10,2071 262,940 5,141,464 5,144,074 316,137 (55,807) 5.404,404 Restrlcted funds Education Fund (Revenue) FabrK Fund (Revenue) Choral Funds (Revenue) Font Project Fund (Revenue) Choral Capital Fund Educatlon Capital Fund FabrK Capital Fund 22.195 4.313 19.087 253.764 I65.7 124.(M51 (62.2231 65,7 17,237 195.854 81,227 858,303 81,227 885,259 24,045 36,956 (10,(KKII 24,045 1 265 845 TOTAL FUNDS 6 110 112 6 670 249 27 | Page continLEd...
The Hereford Cathe(tral Per tual Trust Notes to the Financial Statements - continued for the Year Ended 31 DeCeMr 2024 16. MOVEMElff IN FUNDS - contlnued Net movement in funds, included in the ab)ve are as fdlows: Incomlng Resources Galns and 105ses l*lovement in funds Unre5trlcted funds General Fund (Revenue General Capital Fund 361,901 (250,(Y>OI 111,841 361,9)1 {250.0601 204,296 316,137 Restrlcted funds Education Fund (Revenue) Fabric Fund {Revenue} Choral Funds (Reyewe) Clwal Capital Fund 37.194 463,552 109.860 (18.(lJ)) Q09,511) {175,667) 11071 12771 19,087 253,764 I65,7) TOTAL FUNDS 653 2381 Comparatlves ftir movement in funds Net movement in funds Transfers between funds At 31.12.23 At 1.1.23 Unrestrlcted fund5 General Fund {Revenue General Capital Fund 5,251,953 35,608 145.803 {5,090,862) 196,699 4 947 375 5.251,953 181.411 1289,290) 5,144,074 Restrfcted fund5 Education Fund (Revenue) FabrK Fund (Revenue) Choral Funds (Revenue) Font Project Fund (Reven) Choral Capital Fund 9.595 3,2Lr2 535.298 81,227 12,6 1.111 22,195 4,313 1535,298) 81,227 33.715 824.588 TOTAL FUNDS 228,837 6 110 112 28 1 Page tinued...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - cOntind for the Year Ended 31 DeCeMr 2024 16. hlOVEMEKf IN FUNDS - contlnued Comparative net movement in funds, inClud ale a as fotlow& InciNning Res(wrces Gains and losses hlovefflent in funds Unrestrlctèd fund5 General Fund {Revenuel General Capital Fund 323,885 1288.277) 35.608 323,885 (288,277) 145,803 181.411 Restrlcted funds Education Fund (Revenue Fabri¢ Fund (Revenue) Choral Funds {Revenue) Choral Capital Fund (18,1) 12,6(K) 1,111 121,730 (121.7301 139 730 TOTAL FUNDS 169 518 Unrestricted Funds The Trustees have designated the greater part of the reStrItted funds as a l(m8"temi fund rekyesented ty investments. Within this amount they have further eaM)ar 145,CW for Clergy H¢wsino. The balarKe of the unrestricted fund preSentS the 0ratIonal vffjrkwi8 capital of the Trust. Restrlcted Funds The Falxic Fund has been establSshed to provide finatKial Slrt for the maintenance of the fabric of Hereford Cathedral. A significant elemeni of fund wlll be utllised thrlng 2025, wlth Ihe remalnlng balance belng carried forward to spend on futwe wojects, as apprwiate. The Choral Funds c1prise a fund established to proYi¢ finarKial sutp)rt to the Choral FOundatiC of Hereford Cathe<tral in relation to promotion of the religiws, musical and secular education of pupils, the repalr, maintenance and renewal of the organ of the Cathedral and the acwi5lt1 and maintenarKe of its musical b(, manuscripts and ttrE employment of all staff including Lay clerks in connection with the Choral Seryi of the Cathedral. Within the Choral Fund5, the Choral Investment Fund forms part of the investment wrtfoiio held. The fund has been established to generate income to supwrt the Choral Foundation of Hereford Cathedral. Gains and losses on the investment are reflected in the fund balance. The Education Fund is used to assist catItraI wnnwig its eknation programe viith schools, colleges and universitie5, along with the adult sector. Transfers between funds Transfers between funds made relate to (il proiects subsidid by the unrestricted fund lii) the transfer between the It)ng-tem investment fund and tl* working capital fund made to order to show long-tem investment fund separately. 29 | Page Contin1...
The Hereford Cathedral Per tual Trust Notes to the Financial Statements - contin1 for the Year Ended 31 L)ecemter 2024 17. coKnNGEKf LIABILMES The Charity have been notified that a legacies received in 2019 could be recalled due to the distribution of the legacy being challenged. The value of the legacy amounted to Q1,121.72, due to the uncertainty of whether the balance needs to be returrd. the Trustees have co[lUded that it is appropria to continue to recognise the balance In the finalal 5tateffnts at 31st December 21TI4. 18. RELATED PARTY DISCLOSURES During the JEar, £7,3(J) {2023: £7,3Cfj) in <knations V•PS receId from six trustees (2023: five trustees) of The Hereford Cathedral Perpetual Trust. Chapter of Hereford Cathedral The Dean of Hereford is Ixjth a trustee of Hereford Cathedral Perpetual Trust and presides the Chapter of Hereford Cathedral. The present Dean. The Very Reverend Sarah Brofft has been a trustee Sin 2 OCtor 2021. Nat Hone, a trustee and Chairman of the Perpetual TrusL rewesents the Trust, as Chair, on the Chapterf5 Finan and Risk Cmittee. Dur8 the year £559,511 {2023: £351,250) of grants were Ma to the Chapter of Hereford Cathedral. Details of the grants can be f(nd in note 7. At the year- end £23,9I11 was due to the Chapter {2023: £Nil). During the year £34012023: £326) of g(N)ds and rvKes were rChd from Chapter of Hereford Cathethal. At the year-end £Nil 12023: £Nill wa5 outstanding. Hereford Cathedral Enterprlses Llmlted Hereford Cathedral Enterprises Limited is a wholly owned subsidiary of Hef0rd Cathedral of which the Dean of Hereford is a Trustee. Durng the year £378 (2023: £2451 of gThx15 and services purchased frn Hereford Cathedral Enterprises Ltd. At the year-end ENII (2023: £Nill vlas txrtstanthng. G Mlller - Company Secretary During the year G Miller was paid E2.893 12023: INill cfft a self employed basls fLY financial support for the charity. At the year end £374 {2023: £Nil) was outstanding. 301 Page
The Hereford Cathedral Per tual Trust Detailed Statement of FInala1 Activitles for the Year Enthd 31 December 2024 31.12.24 31.12.23 INCOME AND ENDOWIAEp¥rs l)onatlons and legacies Grants Donations Gift aid Legacies 514.3LKI 76,585 12,586 103 510 97,158 16,463 706,981 231,760 Other tradlng actlvltles Events 13.829 11,346 Investment Income Dlvithnd income . ICazenove} Interest receivable 245.713 242,881 251.697 Total Incomlng resources 9n.507 487,326 EXPENDITURE Ralsfng donation5 and legades Dlrect fundraising exFenses Promotional materials 16,951 16,774 75 16.951 16,849 Investment management costs Portfolio rnanagement 10,418 9,913 Charltable artfvltles Wages ial security Pensi(S Grants to institutions 16,LX)2 17,733 211 1,016 1,579 559 511 577,092 370,220 Support costs Management Insuran Other profesSical fees Computer and software costs Postage and statiorery countartcy Other overheads 1,734 21,613 3,566 10,684 3,492 2.734 12.595 42,250 24.645 This page (k)es rK)t form part of the statutory financial statements 31 1 Page
The Fkreford Cathedral Per tual Trust Detailed Statement of FinarKial Activities for the Year Ended 31 December 2024 31.12.24 31.12.23 Management Governance costs Auditors. rernuneratic Sundries 6,31X) 227 Total resources expended 653 238 Net fncome 319.269 59.319 This page does not form part of the statutory financial statements 32 1 Page