2021-03-31-accounts

SALISBURY CATHEDRAL CHORAL FOUNDATION

REPORT OF THE TRUSTEE

AND

STATEMENT OF ACCOUNTS

FOR THE YEAR ENDED 31st MARCH 2021

CONTENTS

Page

1	Trustee, Officers and Advisers
2 - 3	Trustee's Report
4	Independent Examiner's Report
5	Statement of Financial Activities
6	Balance Sheet
7 - 11	Notes to the Accounts
12	Income and Expenditure Account

Page 1

SALISBURY CATHEDRAL CHORAL FOUNDATION

REGISTERED CHARITY NUMBER 1058899

Trustee: Salisbury Cathedral Address: 6 The Close, Salisbury, SP1 2EF Independent Examiner: James Fletcher Crown Chambers, Bridge Street, Salisbury, SP1 2LZ Solicitors: Parker Bullen 45 Castle Street, Salisbury, SP1 3SS Bankers: Lloyds Bank plc 38 Blue Boar Row, Salisbury, SP1 1DB Accountants: Fletcher & Partners, Chartered Accountants Crown Chambers, Bridge Street, Salisbury, SP1 2LZ

Page 2

SALISBURY CATHEDRAL CHORAL FOUNDATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31st MARCH 2021

Legal Status

The Foundation is a registered charity number 1058899. It is regulated by a Deed of Trust dated 30 October 1996. Under the Trust Deed the Trustee of the Foundation is the Corporation of Salisbury Cathedral. The Trust Deed gives the Trustee complete discretion over the Foundation's investments.

Objectives and activities for the public benefit

The principal objective of the Charity is the promotion and enhancement of Church Music in Salisbury Cathedral. The Trustee has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Foundation's aims and objectives and in planning future activities and setting the grant making policy for the year.

The Foundation achieves its objective by applying its income to assisting choristers with their fees at Salisbury Cathedral School and promoting the Cathedral choirs generally.

Funding Policies

The Foundation's published policy is to establish an endowment fund to provide income to enable it to provide scholarships and bursaries for Salisbury Cathedral choristers. Capital donations, which are made to the Foundation on this basis, are therefore added to the Endowment Fund.

Organisation

The Chapter of Salisbury Cathedral, as the executive body of the Corporate Trustee, meet from time to time as Trustee of the Foundation.

Trustee's Responsibility for the Preparation of Accounts

Charity Law requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its financial activities for that period. In preparing those financial statements the Trustee is required to:

• 1) Select suitable accounting policies and then apply them consistently.

• 2) Make judgements and estimates that are reasonable and prudent.

• 3) Follow applicable accounting standards, subject to any material departures disclosed and explained in the accounts.

• 4) Prepare the accounts on the going concern basis unless it is inappropriate to assume that the Fund will continue to function.

• 5) Observe the methods and principles in the Charities SORP.

The Trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable it to ensure that the financial statements comply with the Charities Act 2011,all current statutory requirements, the charities governing document, and the requirements of the revised statement of recommended practice. The Trustee is also responsible for taking reasonable steps for the prevention and detection of fraud or other irregularities.

Investment Powers, Policy and Performance

The Trustee has the authority to invest the Trust Fund in the purchase of or at interest on the security of such stocks, funds, shares, securities or other investments or property of whatever nature and wherever situated as the Trustee in their absolute discretion think fit to the intent that the Trustee shall have the same full and unrestricted powers if investing and transposing investments as if they were beneficially entitled to the Trust Fund.

The Trustee's policy is to invest the Foundation's capital in charitable common investment funds, in a mixture of funds based on both equities and fixed-interest stocks. The objective is to obtain a relatively high level of income while still allowing for the possibility of capital growth, subject to a medium degree of risk.

In the 12 months to 31st March 2021 the Choral Foundation portfolio had a total return (income plus Capital) of 22.7%. This compares with returns from UK equities of 24.3%, from overseas equities of 39.4%, and from fixed interest of -5.7%. Sources * MSCI UK Index; MSCI World ex UK Index; ***Markit iBoxx £ Gilts Index

Trustee Remuneration and Expenses

Neither the Trustee nor any persons connected with them received any remuneration in the year.

Page 3

SALISBURY CATHEDRAL CHORAL FOUNDATION TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31st MARCH 2021

Risk Management

The Chapter has assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and is satisfied that systems are in place to mitigate the charity's exposure to the major risks.

Our approach to Fundraising activities

The trustees are please to confirm the following:

• The fundraising approach taken by the charity is to raise funds from private donors or trusts to support the objectives of the foundation. Currently the trustees have no plans to retain a professional fundraiser or commercial participator to assist with these fundraising activities.

• The trustees are pursuing registration with the Fundraising Regulator and will look to adhere to the practice this body recommends in addition to adhering to guidance issued by the Charity Commission

• The trustees have had no incidents of failure by the foundation, or by any person acting on its behalf, to comply with fundraising standards.

• Since the trustees have not retained any person acting on its behalf no monitoring of fundraising activities by third parties is currently undertaken.

• The Trustees did not receive in the year reported any complaints received about its fundraising activity.

• The trustees seek to protect vulnerable people and other members of the public by adhering to good practice and working with the Cathedral by complying with data privacy requirements to ensure that future fundraising events will be safeguarded from behaviour which:

• Is an unreasonable intrusion on a person's privacy

• Is unreasonably persistent; and

• Places undue pressure on a person to give money or other property

Review of Activities

The Choral Foundation continued to use its investment income to fund bursaries to support choristers at Salisbury Cathedral. During this financial year also provided support with a grant towards the chorister tutor.

Review of Financial Transactions and Position

During the year donations, legacies, voluntary contributions and investment income amounted to £48,149. A total of £53,350 was spent on scholarships and bursaries.

The endowment funds increased by £80,307, taking into account unrealised surpluses on investments, whilst the income funds increased by £8,725, reflecting the continuing support of the choristers. The Foundation's net assets at the end of the year totalled £769,575 of which £501,300 were held as endowed funds and is not available to spend.

Future Plans

The Foundation will continue to raise funds to provide chorister bursaries, to fund choir tours when these take place and to promote music in Salisbury Cathedral more generally.

Signed on behalf of the Trustee

............................................................................. Chapter Clerk

Date: ........................................................ 2021

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEE OF SALISBURY CATHEDRAL CHORAL FOUNDATION FOR THE YEAR ENDED 31st MARCH 2021

I report to the Trustee on my examination of the accounts of the Charity for the year ended 31 March 2021, which are set out on pages 5 to 11.

RESPONSIBILITIES AND BASIS OF REPORT

As the charity's Trustee you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act").

I report in respect of my examination of the Trustee's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145 (5) (b) of the 2011 Act.

INDEPENDENT EXAMINER'S STATEMENT

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

(1) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

(2) the accounts do not accord with those records; or

(3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a "true and fair view" which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

James Fletcher FCA Chartered Accountant Fletcher & Partners Crown Chambers Bridge Street Salisbury SP1 2LZ

Date:

Page 5

SALISBURY CATHEDRAL CHORAL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st MARCH 2021

Income and endowments from: Donations and legacies Fund-raising events Investment income 2 Total income Expenditure on: Costs of income generation Fundraising costs Management Fees Charitable activities Scholarships and bursaries Choir Tour Chorister Tutor Independent examination fee 3 Total expenditure Net income / (expenditure) before gains and losses on investments NET GAINS/(LOSSES) ON INVESTMENTS Unrealised profits/( losses) on investments 4 Realised profits/(losses) on investments Net income / (expenditure) Transfers between funds 8 Net movement in funds Fund balances at 1 April 2020 Fund balances at 31 March 2021	Unrestricted Funds 16,140 582 2,357 19,079 - 770 770 - - 18,000 - 18,000 18,770 309 12,386 - 12,695 (4,019) 8,676 162,223 £170,899	Restricted Funds 13,000 245 15,825 29,070 - - - 53,350 - - 440 53,790 53,790 (24,720) - - (24,720) 4,019 (20,701) 118,077 £97,376	Endowment Funds - - - - - 5,201 5,201 - - - - - 5,201 (5,201) 85,508 - 80,307 - 80,307 420,993 £501,300		Total 2021 29,140 827 18,182 48,149 - 5,971 5,971 53,350 - 18,000 440 71,790 77,761 (29,612) 97,894 - 68,282 - 68,282 701,293 £769,575	Total 2020
						38,064 8,584 18,818
						65,466
						1,347 5,379
						6,726
						53,233 4,685 - 360
						58,278
						65,004
						462 3,077 - 3,539 -
						3,539
						697,754
						£701,293

Page 6

SALISBURY CATHEDRAL CHORAL FOUNDATION BALANCE SHEET AS AT 31st MARCH 2021

Note FIXED ASSETS Investments 4 CURRENT ASSETS Debtors 5 Cash at bank CREDITORS: Amounts falling due within one year 6 NET CURRENT ASSETS TOTAL NET ASSETS Representing: ENDOWMENT FUNDS 7 Scholarship and Bursary Fund capital Music Commissioning Fund capital RESTRICTED FUNDS 8 Scholarship and Bursary Fund income Music Commissioning Fund income Choir Tours Fund UNRESTRICTED FUNDS 9 General Fund	31st March 2021 580,641 33,043 191,088 224,131 35,197 188,934 £769,575 485,753 15,547 501,300 77,758 15,354 4,264 97,376 170,899 170,899 £769,575	31st March 2020	31st March 2020
	33,043 191,088	12,469 302,090	488,718 212,575
	224,131 35,197	314,559 101,984
	485,753 15,547	407,875 13,118
			£701,293
			420,993 118,077 162,223
	77,758 15,354 4,264	103,212 14,865 -
	170,899	162,223
			£701,293

Signed on behalf of the trustee ………………………………… Chapter Clerk

Approved by Chapter: …………………………………….. 2021

Page 7

SALISBURY CATHEDRAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS

AS AT 31st MARCH 2021

1. ACCOUNTING POLICIES

a. Basis of accounting

The accounts have been prepared in accordance with the Charities Act 2011, the Statement of

Recommended Practice on Accounting and Reporting by Charities applicable to charities

preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective January 2019).

Salisbury Cathedral Choral Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless stated in the relevant accounting policy note.

b. Preparation of the accounts on a going concern basis

The charity is a grant making trust, with a significant investment portfolio and cash reserves. The charity has a low level of overheads and makes discretionary grants. The Trustee is confident that the charity is a going concern.

c. Investments

Investments are stated at market value and the unrealised gains arising in the year are credited to the funds in which the investments are held.

d. Income and expenditure

Income and expenditure are accounted for on the accruals basis. Liabilities are recognised when a legal or constructive obligation to transfer economic benefits arises as a result of past transactions or events. Scholarships and bursaries are accounted for at the start of the school term to which they relate.

e. Income tax

Income tax recoverable is accounted for at the same time as the related net income

f. Restricted and endowment funds

Moneys held on specific trusts, including permanent endowment, within the general objects of the Foundation, are identified separately and shown as restricted or endowment funds.

2. INVESTMENT INCOME

2. INVESTMENT INCOME Dividends on UK listed investments 3. SUPPORT COSTS Independent examination (governance)	31st March 2021 18,182 £18,182 440 £440	31st March 2020 18,818
		£18,818
		360
		£360

Support costs are incidental to the operation of the charity and are allocated to the Bursary and Scholarship Fund.

4. INVESTMENTS

Market value at 1 April 2020 Unrealised gains in year Increase in cash held for investment Market value at 31 March 2021 Cost at 31 March 2021 Cost at 31 March 2020	General Fund 63,287 12,386 (770) £74,903 £48,150 £48,150	Scholarship Music and Bursary Commissioning Fund Fund 412,183 13,248 82,918 2,590 (5,040) (161) £490,061 £15,677 £313,605 £10,080 £313,605 £10,080	Total
			488,718 97,894 (5,971)
			£580,641
			£371,835
			£371,835

Page 8

SALISBURY CATHERAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31st MARCH 2021

4. INVESTMENTS (continued) The investment portfolio was made up as follows: CCLA COMPARATIVE INVESTMENTS NOTE General Fund Market value at 1 April 2019 63,585 Additions - Disposals - Realised Gains - Unrealised gains in year 399 Increase in cash held for investment (697) Market value at 31 March 2020 £63,287 Cost at 31 March 2020 £48,150 Cost at 31 March 2019 £48,150 5. DEBTORS Salisbury Cathedral Income tax recoverable Sundry Debtors 6. CREDITORS: Amounts falling due within one year Salisbury Cathedral Salisbury Cathedral School Salisbury Cathedral Choristers Endowment Fund Accruals

31st March 31st March 2021 2020 580,641 488,718 £580,641 £488,718 Scholarship Music and Bursary Commissioning Fund Fund Total 414,125 13,310 491,020 - - - - - - - - - 2,594 84 3,077 (4,536) (146) (5,379) £412,183 £13,248 £488,718 £313,605 £10,080 £371,835 £313,605 £10,080 £371,835 19,375 - 8,903 7,793 4,765 4,676 £33,043 £12,469 - 77,206 34,067 - - 23,688 1,130 1,090 £35,197 £101,984

7. ENDOWMENT FUNDS Balance at 1 April 2020 Realised Gain Unrealised gains Management fees Balance at 31 March 2021 Represented by: Investments	Bursary and Music Scholarship Commissioning Fund Fund Endowment Endowment 407,875 13,118 - - 82,918 2,590 (5,040) (161) £485,753 £15,547 485,753 15,547 £485,753 £15,547	Total £ 420,993 - 85,508 (5,201) £501,300 501,300 £501,300

Page 9

SALISBURY CATHERAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31st MARCH 2021

7. ENDOWMENT FUNDS - COMPARATIVE NOTE

Balance at 1 April 2019 Realised Gain Unrealised gains Management fees Balance at 31 March 2020 Represented by: Investments 8. RESTRICTED FUNDS Balance at 1 April 2020 Income Transfer from unrestricted funds Expenditure Balance at 31 March 2021	Bursary and Music Scholarship Commissioning Fund Fund Endowment Endowment 409,817 13,180 - - 2,594 84 (4,536) (146) £407,875 £13,118 407,875 13,118 £407,875 £13,118 Bursary and Music Scholarship Commissioning Fund Fund Choir Tours Income Income Fund 103,212 14,865 - 28,336 489 245 - - 4,019 (53,790) - - £77,758 £15,354 £4,264	Total
		422,997 - 2,678 (4,682)
		£420,993
		420,993
		£420,993
		Total
		£ 118,077 29,070 4,019 (53,790)
		£97,376

These funds consist of moneys held on specific trusts within the objects of the Foundation, as follows:

Scholarship and Bursary Fund - income of the Scholarship and Bursary Endowment Fund, which is to be used to pay for scholarships and bursaries for choristers;

Music Commissioning Income Fund - income of the Music Commissioning Endowment Fund, which is to be used to commission new music for use in Cathedral services;

Choir Tours Fund - donations specifically to assist with funding choir tours.

RESTRICTED FUNDS - COMPARATIVE NOTE

Balance at 1 April 2019 Income Transfer from unrestricted funds Expenditure Balance at 31 March 2020	Bursary and Music Scholarship Commissioning Fund Fund Income Income 116,717 14,338 19,863 527 - - (33,368) - £103,212 £14,865	Choir Tours Fund - 3,674 2,358 (6,032) £-	Total
			£ 131,055 24,064 2,358 (39,400)
			£118,077

Page 10

SALISBURY CATHERAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31st MARCH 2021

9. UNRESTRICTED FUNDS

Balance at 1st April 2020 Income General fund 162,223 19,079 Total £162,223 £19,079 UNRESTRICTED FUNDS - COMPARATIVE YEAR Balance at 1st April 2019 Income General fund 143,702 41,402 Total £143,702 £41,402	Expenditure (18,770) (£18,770) Expenditure (20,922) (£20,922)	Gains/(losses) and transfers 8,367 £8,367 Gains/(losses) and transfers (1,959) (£1,959)	Balance at 31st March 2021	Balance at 31st March 2021
			£ 170,899 £170,899 Balance at 31st March 2020
				£ 162,223 £162,223

10. COVID-19 PANDEMIC

The charity is not significantly affected by the Covid-19 pandemic. The investment portfolio has performed well and the Trustee is able to take a long term view in determining the level of grants awarded in future years.

Page 11

11. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

SALISBURY CATHEDRAL CHORAL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st MARCH 2020

Income and endowments from: Donations and legacies Fund-raising events Investment income 2 Total income Expenditure on: Costs of income generation Fundraising costs Management Fees Charitable activities Scholarships and bursaries Choir Tour Music & Medal Purchase Independent examination fee 3 Total expenditure Net income / (expenditure) before gains and losses on investments NET GAINS/(LOSSES) ON INVESTMENTS Unrealised profits/( losses) on investments 4 Realised profits/(losses) on investments Net income / (expenditure) Transfers between funds 8 Net movement in funds Fund balances at 1 April 2019 Fund balances at 31 March 2020	Unrestricted Funds 32,466 6,508 2,428 41,402 - 697 697 20,225 - - - 20,225 20,922 20,480 399 - 20,879 (2,358) 18,521 £143,702 £162,223	Restricted Funds 5,598 2,076 16,390 24,064 1,347 - 1,347 33,008 4,685 - 360 38,053 39,400 (15,336) - - (15,336) 2,358 (12,978) £131,055 £118,077	Endowment Funds - - - - - 4,682 4,682 - - - - - 4,682 (4,682) 2,678 - (2,004) - (2,004) £422,997 £420,993		Total 2020
					38,064 8,584 18,818 65,466 1,347 5,379 6,726 53,233 4,685 - 360 58,278 65,004 462 3,077 - 3,539 - 3,539 £697,754 £701,293

Page 12

SALISBURY CATHEDRAL CHORAL FOUNDATION DETAILED INCOME AND EXPENDITURE ACCOUNT

AS AT 31st MARCH 2021

GENERAL FUND Income Legacy Donations Fundraising income Investment income Expenditure Music & Medal Purchase Grants to choristers Grant for chorister Tutor Management Fee (Deficit) / Surplus BURSARY AND SCHOLARSHIP FUND Income Donations Investment income Expenditure Grants to choristers Management Fees Governance costs (Deficit) / Surplus MUSIC COMMISSIONING FUND Income Legacy Donations Investment income Expenditure Purchase/commissioning of music Management Fees (Deficit) / Surplus CHOIR TOURS FUND Income Donations Fundraising income Investment income Expenditure Fundraising expenses Costs of tours (Deficit) / Surplus Surplus / (Deficit) on Income Funds	Year ended 31st March 2021 £ £ 5,000 11,140 582 2,357 19,079 - - 18,000 770 18,770 309 13,000 15,336 53,350 5,040 440 (30,494) - - 489 489 - 161 328 - 245 - 245 - - - 245 (29,612)	Year ended 31st March 2020	Year ended 31st March 2020
	£ 5,000 11,140 582 2,357 19,079 - - 18,000 770 18,770 13,000 15,336 53,350 5,040 440 - - 489 489 - 161 - 245 - 245 - - -	£ 5,000 27,466 6,508 2,428 41,402 - 20,225 - 697 20,922 4,000 15,863 33,008 4,536 360 - - 527 527 - 146 1,598 2,076 - 3,674 1,347 4,685 6,032	£ 20,480 (18,041) 381 (2,358)
			462