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2023-03-31-accounts

SALISBURY CATHEDRAL CHORAL FOUNDATION

REPORT OF THE TRUSTEE

AND

STATEMENT OF ACCOUNTS

FOR THE YEAR ENDED 31st MARCH 2023

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: Haysmacintyre LLP 10 Queen Street Place, London, EC4R 1AG Solicitors: Parker Bullen 45 Castle Street, Salisbury, SP1 3SS Bankers: Lloyds Bank plc 38 Blue Boar Row, Salisbury, SP1 1DB

Page 2

SALISBURY CATHEDRAL CHORAL FOUNDATION TRUSTEE'S REPORT FOR THE YEAR ENDED 31st MARCH 2023

Legal Status

The Foundation is a registered charity number 1058899. It is regulated by a Deed of Trust dated 30th 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:

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 2023 the Choral Foundation portfolio had a total return (income plus Capital) of minus 3.0%. This compares with returns from UK equities of 2.95%, from overseas equities of minus 0.99%, and from fixed interest of minus 17.04 %. 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 2023

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:

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 £260,727 (2022 £175,582). A total of £87,108 (2022 £73,122) was spent on scholarships and bursaries.

The endowment funds decreased by £33,415 (2022 £48,594 increase), taking into account unrealised losses investments, whilst the income funds increased by £52,318 (2022 £27,586), reflecting the continuing support of the choristers. The Foundation's net assets at the end of the year totalled £864,658 (2022 £845,755) of which £516,479 (2022 £549,894) were held as endowed funds and are 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

Jackie Molnar

Chapter Clerk

Date: 30 January 2024

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEE OF SALISBURY CATHEDRAL CHORAL FOUNDATION FOR THE YEAR ENDED 31st MARCH 2023

I report to the Trustee on my examination of the accounts of the Charity for the year ended 31 March 2023, which are set out on pages 5 to 11.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The trustee is responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the 2011 Act). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.

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

INDEPENDENT EXAMINER'S STATEMENT

Since the charity's income is in excess of £250,000, your examiner must be a member of a body listed in the 2011 Act. I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention 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 2011 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.

Lee Stokes FCA Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Date: 30 January 2024

Page 5

SALISBURY CATHEDRAL CHORAL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st MARCH 2023

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
4
Charitable activities
Scholarships and bursaries
Choir Tour
Chorister costs
Music commission
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
Net movement in funds
Fund balances at 1 April 2022
Fund balances at 31 March 2023		 Unrestricted
Funds
£
123,928
23,176

2,471
149,575
12,240

823
13,063
-
-
65,377
-

-
65,377
78,440
71,135

(4,126)
67,009
67,009
196,606
£263,615		 Restricted
Funds		 Endowment
Total
Funds
2023
£
£
-
204,223
-
37,352
-
19,152
-
260,727
-
12,240
5,556
6,379
5,556
18,619
-
87,108
-
33,735
-
65,377
-
4,000
-
1,000
-
191,220
5,556
209,839
(5,556)
50,888
(27,859)
(31,985)
(33,415)
18,903
(33,415)
18,903
549,894
845,755
£516,479
£864,658		 Total
2022
£
80,295
14,176
16,681
111,152
-
-
-
87,108
33,735
-
4,000
1,000
125,843
125,843
(14,691)
-
(14,691)
(14,691)
99,255
£84,564		 £
113,976
42,730
18,876
175,582
18,138
7,338
25,476
73,122
-
63,493
-
440
137,055
162,531
13,051
63,129
76,180
76,180
769,575
£845,755

Page 6

SALISBURY CATHEDRAL CHORAL FOUNDATION BALANCE SHEET

AS AT 31st MARCH 2023

Note
31st March 2023
FIXED ASSETS
£
£
Investments
4
598,068
CURRENT ASSETS
Debtors
5
31,783
Cash at bank
349,547
381,330
CREDITORS: Amounts falling due
within one year
6
114,740
NET CURRENT ASSETS
266,590
TOTAL NET ASSETS
£864,658
Representing:
ENDOWMENT FUNDS
7
Scholarship and Bursary Fund capital
500,462
Music Commissioning Fund capital
16,017
516,479
RESTRICTED FUNDS
8
Scholarship and Bursary Fund income
72,183
Music Commissioning Fund income
12,381
Choir Tours Fund
0
84,564
UNRESTRICTED FUNDS
9
General Fund
263,615
263,615
£864,658		 31st
£
42,472
168,021
210,493
1,170
532,841
17,053
79,127
15,864
4,264
196,606		 March 2022
£
636,432
209,323
£845,755
549,894
99,255
196,606
£845,755

Jackie Molnar

Signed on behalf of the trustee …………………………………

Chapter Clerk

Approved by Chapter: 30 January 2024

Page 7

SALISBURY CATHEDRAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS AS AT 31st MARCH 2023

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) (Second edition, 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

NT INCOME
Dividends on collective investments
COSTS
Independent examination (governance)		 31st March
2023
£
19,152
£19,152
£
1,000
£1,000		 31st March
2022
£
18,876
£18,876
£
932
£932

SUPPORT COSTS

3.

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 2022
Realised Gains
Unrealised gains/(losses) in year
Management fees
Market value at 31 March 2023
Cost at 31 March 2023
Cost at 31 March 2022		 Scholarship
Music
General
and Bursary
Commissioning
Fund
Fund
Fund
£
£
£
82,100
537,149
17,183
-
-
-
(4,126)
(26,995)
(864)
(823)
-
(5,556)
£77,151
£510,154
£10,763
£62,599
£409,563
£13,102
62,599
409,563
13,102		 Total
£
636,432
-
(31,985)
(6,379)
£598,068
£485,264
£485,264

Page 8

SALISBURY CATHERAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31st MARCH 2023

4.
INVESTMENTS (continued)
The investment portfolio was made up as follows:
CCLA
COMPARATIVE INVESTMENTS NOTE
General
Fund
£
Market value at 1 April 2021
74,903
Additions
-
Disposals
-
Realised Gains
-
Unrealised gains in year
8,144
Increase in cash held for investment
(947)
Market value at 31 March 2022
£82,100
Cost at 31 March 2022
£48,150
Cost at 31 March 2021
£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 Girl choristers Fund
Accruals
7.
ENDOWMENT FUNDS
Balance at 1 April 2022
Donations
Realised Gain
Unrealised gains/(losses)
Management fees
Balance at 31 March 2023
Represented by:
Investments		 Scholarship
and Bursary
Fund
£
490,061
-
-
-
53,281
(6,193)
£537,149
£313,605
£313,605
Bursary and
Scholarship
Fund
Endowment
£
532,841
-
-
(26,995)
(5,384)
£500,462
500,462
£500,462		 31.3.23
£
598,068
£598,068
Music
Commissioning
Fund
£
15,677
-
-
-
1,704
(198)
£17,183
£10,080
£10,080
31.3.23
£
-
15,365
16,418
£31,783
31.3.23
£
97,497
-
730
16,513
£114,740
Music
Commissioning
Fund
Endowment
£
17,053
-
-
(864)
(172)
£16,017
16,017
£16,017		 31.3.22
£
636,432
£636,432
Total
£
580,641
-
-
-
63,129
(7,338)
£636,432
£371,835
£371,835
31.3.22
£
26,567
11,055
4,850
£42,472
31.3.22
£
-
-
730
440
£1,170
Total
£
549,894
-
-
(27,859)
(5,556)
£516,479
516,479
£516,479

Page 9

SALISBURY CATHERAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31st MARCH 2023

7. ENDOWMENT FUNDS - COMPARATIVE NOTE

Balance at 1 April 2021
Realised Gain
Unrealised gains
Management fees
Balance at 31 March 2022
Represented by:
Investments
RESTRICTED FUNDS
Balance at 1 April 2022
Other collections
Income
Transfer from unrestricted funds
Expenditure
Unrealised gains/(losses)
Balance at 31 March 2023		 Bursary and
Music
Scholarship
Commissioning
Fund
Fund
Endowment
Endowment
£
£
485,753
15,547
-
-
53,281
1,704
(6,193)
(198)
£532,841
£17,053
532,841
17,053
£532,841
£17,053
Bursary and
Music
Scholarship
Commissioning
Fund
Fund
Choir Tours
Income
Income
Fund
£
£
£
79,127
15,864
4,264
-
-
81,164
517
29,471
-
-
-
(88,108)
(4,000)
(33,735)
-
-
-
£72,183
£12,381
£0		 Total
£
501,300
-
54,985
(6,391)
£549,894
549,894
£549,894
Total
£
99,255
-
111,152
-
(125,843)
-
£84,564

8. RESTRICTED FUNDS

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 2021
Income
Transfer from unrestricted funds
Expenditure
Balance at 31 March 2022		 Bursary and
Music
Scholarship
Commissioning
Fund
Fund
Income
Income
£
£
77,758
15,354
74,931
510
-
-
(73,562)
-
£79,127
£15,864		 Choir Tours
Fund
£
4,264
-
-
-
£4,264		 Total
£
97,376
75,441
-
(73,562)
£99,255

Page 10

SALISBURY CATHERAL CHORAL FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31st MARCH 2023

9. UNRESTRICTED FUNDS

Balance at
1st April 2022
Income
£
£
General fund
196,606
149,575
Total
£196,606
£149,575
UNRESTRICTED FUNDS - COMPARATIVE YEAR
Balance at
1st April 2021
Income
General fund
170,899
100,141
Total
£170,899
£100,141		 Expenditure
£
(78,440)
(£78,440)
Expenditure
(82,578)
(£82,578)		 Gains/(losses)
and transfers
£
(4,126)
(£4,126)
Gains/(losses)
and transfers
8,144
£8,144		 Balance at
31st March 2023		 Balance at
31st March 2023
£
263,615
£263,615
-
Balance at
31st March 2022		 £
263,615
£263,615
£
196,606
£196,606

Page 11

SALISBURY CATHEDRAL CHORAL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st MARCH 2023

10. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from:
Donations and legacies
Fund-raising events
Investment income
2
Legacies
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 2021
Fund balances at 31 March 2022		 Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
2022
£
£
£
£
54,976
59,000
-
113,976
42,730
-
-
42,730
2,435
16,441
-
18,876
-
-
100,141
75,441
-
175,582
18,138
-
-
18,138
947
-
6,391
7,338
19,085
-
6,391
25,476
-
73,122
-
73,122
-
-
-
-
63,493
-
-
63,493
-
440
-
440
63,493
73,562
-
137,055
82,578
73,562
6,391
162,531
17,563
1,879
(6,391)
13,051
8,144
-
54,985
63,129
-
-
-
-
25,707
1,879
48,594
76,180
-
-
-
-
25,707
1,879
48,594
76,180
£170,899
£97,376
£501,300
£769,575
£196,606
£99,255
£549,894
£845,755

Page 12

SALISBURY CATHEDRAL CHORAL FOUNDATION DETAILED INCOME AND EXPENDITURE ACCOUNT AS AT 31st MARCH 2023

GENERAL FUND
Income
Legacy
Donations
Fundraising income
Investment income
Expenditure
Music & Medal Purchase
Fund raising costs
Grant for chorister Tutor and administration
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 2023
£
£
102,640
21,288
23,176
2,471
149,575
-
12,240
65,377
823
78,440
71,135
65,000
16,164
81,164
87,108
5,384
1,000
93,492
(12,328)
-
-
517
517
4,000
172
4,172
(3,655)
15,295
14,176
-
29,471
-
33,735
33,735
(4,264)
50,888		 Year ended
31st March 2022
£
£
-
54,976
42,730
2,435
100,141
493
18,138
63,000
947
82,578
17,563
59,000
15,802
74,802
73,122
6,263
440
79,825
(5,023)
-
-
639
639
-
128
128
511
-
-
-
-
-
-
-
-
13,051
£
102,640
21,288
23,176
2,471
149,575
-
12,240
65,377
823
78,440
65,000
16,164
81,164
87,108
5,384
1,000
93,492
-
-
517
517
4,000
172
4,172
15,295
14,176
-
29,471
-
33,735
33,735		 £
-
54,976
42,730
2,435
100,141
493
18,138
63,000
947
82,578
59,000
15,802
74,802
73,122
6,263
440
79,825
-
-
639
639
-
128
128
-
-
-
-
-
-
-