## **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|