BRECON CATHEDRAL CHOIR TRUST
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2020
BRECON CATHEDRAL CHOIR TRUST
INDEX TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020
| Page | |
|---|---|
| Reference and administrative details | 1 |
| ReportoftheTrustees | 2 |
| Reportoftheindependent examiner | 5 |
| Statement offinancial activities | 6 |
| Balance sheet | 7 |
| Notestotheaccounts | 8 |
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BRECON CATHEDRAL CHOIR TRUST
YEAR ENDED 31 DECEMBER 2020
REFERENCE AND ADMINISTRATIVE INFORMATION
Trustees
The Very Rev Dr P Shackerley Mr G Davies Mrs G Jones-Powell The Most Rev J D E Davies Mr J M Greatorex Mr M Parry Mrs R Lloyd Mr H M Smith FCA Rev Canon D Roberts
Address of the Trustees
Diocesan Centre Cathedral Close Brecon Powys LD3 9DP
Registered Charity Number
1093670
Independent Examiners
W J James & Co Bishop House 10 Wheat Street Brecon Powys LD3 7DG
Bankers
Lloyds Bank 38 High Street Brecon Powys LD3 7AR
Page 1
BRECON CATHEDRAL CHOIR TRUST
REPORT OF THE TRUSTEES for the year ended 31 December 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The charity is governed by a Declaration of Trust dated 20 March 2002. It is registered as a charity with the Charity Commission.
The Charity operates from the cathedral church of St John the Evangelist, Brecon, in the Diocese of Swansea and Brecon.
Organisation
The Trustees who have served during the year and since the year-end are set out on page 1.
Objectives and activities.
The objects of the charity are to offer all choristers, from the time of their admission as full choristers until the end of their full-time statutory education, tuition on a musical instrument or singing lessons in addition to their choral training in the cathedral choir. ,
The Charity specifically intends to contribute towards a full-time Director of Music and a part-time assistant employed by the Dean and Chapter of Brecon Cathedral.
In order to be able to achieve these objectives, the Charity intends to maintain its investments at over £1.2 millionplus achieving returns from income and capital appreciation to compensate for increasing costs.
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Achievements and performance
The 2020 financial year has been dominated by the effects of the Covid 19 pandemic. For most of the year the Cathedral Choir has been in lockdown so many of the normal activities of the choir which the Trust supports have not occurred. Some chorister tuition has been done via the use of technology such as zoom and the internet. The Trust has continued its support of the Musical staff at the Cathedral. At £25,600 this has been the major expenditure in the year.
Income from investments has fallen by over 25% compared with 2019 whilst our expenditure has fallen by just under 20% giving a deficit before investment values of £2,695.
As agreed with our investment advisors the Trust continues to receive a fixed monthly sum of £3,500 comprising. dividends and capital. The capital contribution has been £6,000. —-
Investments and cash held by our investment advisors Brewin Dolphin is £1.33 million compared with £1.37 million in .2019 a small overall fall and an improvement from March 2020 when the value had fallen to £1.10million. Brewin Dolphin are re organising the Trust’s portfolio to target increases in capital values to replace some dividend income which is expected to fall by 15% in 2021.
The Trust has free cash of £48,899 and is expecting to operate on an income deficit in the medium term with the anticipation that capital growth in investments will enable the Trust’s free cash to stabilise at the level of £25,000.
Report of the Chair
Like many Cathedrals, charities and businesses, the Cathedral music department had to face unexpected challenges and demands in 2020. I am grateful to the trustees, Director of Music and Assistant Organist for their persistence and patience in a challenging year.
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BRECON CATHEDRAL CHOIR TRUST REPORT OF THE TRUSTEES (CONTINUED) for the year ended 31 December 2020
Managing the finances of the music department has required robust management. In the first quarter of 2020 the investment income was estimated at £36,116, but the actual income was £30,166. In December, the Cathedral Choirs’ Emergency Fund granted £25,800 to the Dean and Chapter to assist the music department in facilitating the ‘return of full choral services as existed before Covid-19 restrictions were imposed’. While the grant period was for seven months ending 31 July 2021, it is likely the emergency fund will extend beyond this period.
The Director of Music and Assistant Organist have been on the Coronavirus Job Retention Scheme since April 2020. This largely prevented them from working while on the scheme. There has been no musical activity for most of 2020 since the end of March. However, there was a period of activity later in the year, allowing musicians and choirs to perform in the Cathedral. The choristers and parents also enjoyed a Deanery picnic on Sunday 20 September, socially distanced and bringing their own food and drinks. The following day, with portable electric piano in the South grounds, choristers gathered for the first time since March 2020 to rehearse before beginning to sing in the Cathedral the following Sunday. Musicians and choirs have not only missed singing but also the friendships and social events that are very much part of the Cathedral’s musical tradition.
Throughout September the musicians and choirs also prepared for the BBC filming of Songs of Praise for Remembrance Sunday and BBC Morning Worship for Advent Sunday. The filming took place in the Cathedral on 19" and 20" October. Because the services were ‘productions’, not ‘services’, different guidelines and laws applied, allowing the BBC to film, making it possible for choirs to sing. Then, several weeks before Christmas, further changes meant choirs were prevented from singing in the Cathedral due to another national lockdown. This was very disappointing for everyone involved in Cathedral worship and everyone looking forward to Christmas.
Finally, I would like to thank the team at Brecon Cathedral, both employees and volunteers, the Choir Trustees and Treasurer, for their support and commitment in a difficult and challenging year. They have shown considerable resilience. We look forward with renewed hope to the reintroduction of singing and music to the Cathedral later in 2021.
Funding policy
The Trustees anticipate that the Charity is now funded sufficiently to enable it to carry out its long-term objectives, at least for the time being, and does not intend to be engaging in further core fundraising in the near future.
Investment and reserves policy
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Two Trustees sit on the Diocesan Investment Committee which meets with the Charity’s brokers, Brewin Dolphin, and seeks to balance income with outgoings. A cash balance of between £10,000 and £30,000 is maintained by the Trustees for running expenses and a buffer for capital.
Plans for future periods
The trustees intend to carry out the Charity's stated objectives within an annual revenue budget of £50,000.
Risk Management
The Trustees consider their investment portfolio and anticipated returns to be their largest risk. They recognise the fact that financial assets are volatile and that their value can go down as well as up, and they want to avoid any degradation of capital and income relating to their investments. They manage this risk by adopting a policy of investing in a portfolio with a diverse range of ethical investments.
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BRECON CATHEDRAL CHOIR TRUST
REPORT OF THE TRUSTEES (CONTINUED)
for the year ended 31 December 2020
Trustees’ responsibilities in relation to the financial statements
The charity trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees 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 the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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° select suitable accounting policies and then apply them consistently;
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° observe the methods and principles in the Charities SORP;
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° make judgements and estimates that are reasonable and prudent;
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° state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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° prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees and signed on 1 March 2021 on their behalf by :
The Very Rev Dr Paul Shackerley Chair
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BRECON CATHEDRAL CHOIR TRUST
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF BRECON CATHEDRAL CHOIR TRUST —
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 6 to 11.
Responsibilities and basis of report
As the charity’s trustees 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 charity’s accounts carried out under section 145 of the 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 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:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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 ofan 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.
W A Williams BSc, FCA W J James & Co Chartered Accountants Bishop House 10 Wheat Street 1 March 2021 Brecon Powys
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BRECON CATHEDRAL CHOIR TRUST
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2020
| Unrestricted | Total | Total | ||
|---|---|---|---|---|
| funds | 2020 | 2019 | ||
| Notes | £ | £ | £ | |
| INCOME ANDENDOWMENTS | ||||
| Donations, legacies and | ||||
| similarincome | 2 | 3,850 | 3,850 | 1,986 |
| Investmentincome | 3 | 36,010 | 36,010 | 49,273 |
| TOTALINCOME | 39,860 | 39,860 | 51,259 | |
| EXPENDITURE: | ||||
| Costsofraisingfunds | ||||
| Investmentmanagement costs | 4 | 6,132 | 6,132 | 8,108 |
| Charitable activities | 5 | 35,604 | 35,604 | 43,421 |
| Other | 6 | 819 | 819 | 776 |
| TOTALEXPENDITURE | 42,555 | 42,555 | 52,305 | |
| NETINCOMEEXPENDITURE | (2,695) | (2,695) | (1,046) | |
| Net(losses)/gains oninvestment assets | 7 | (29,595) | (29,595) | 133,217 |
| NETMOVEMENTINFUNDS | (32,290) | (32,290) | «132,171 | |
| Reconciliation offunds: | ||||
| Balances broughtforward | ||||
| at 1 January2020 | 1,404,830 | 1,404,830 | 1,272,659 | |
| Balances carried forward | ||||
| at31December2020 | 1,372,540 | 1,372,540 | 1,404,830 |
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BRECON CATHEDRAL CHOIR TRUST
BALANCE SHEET as at 31 December 2020
| 2020 | 2019 | |||||
|---|---|---|---|---|---|---|
| £ | £ | £ | £ | |||
| FIXED ASSETS | Note | |||||
| Investments | 7 | 1,287,913 | 1,342,567 | |||
| CURRENT ASSETS | ||||||
| Debtors COIF depositaccount |
8 9 |
366 1,311 |
419 1,307 |
|||
| BrewinDolphin Capital and Income accounts | 41,010 | 28,077 | ||||
| Cash atbank | 48,900 | 35,910 | ||||
| 915587 | 65,713 | |||||
| CREDITORS: Amounts falling | ||||||
| due within oneyear | 10 | 6,960 | 3,450 | |||
| NETCURRENT ASSETS | 84,627 | 62,263 | ||||
| TOTALASSETSLESS CURRENTLIABILITIES | 1,372,540 | 1,404,830 | ||||
| FUNDS | ||||||
| Unrestricted | 11 | - | 1,372,540 | 1,404,830 |
Approved by the Board of Trustees on 1 March 2021 and signed on its behalf by
The Very Rev Dr P Shackerley Trustee
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The notes on pages 8 to 11 form part of these accounts
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BRECON CATHEDRAL CHOIR TRUST
_ NOTES TO THE FINANCIAL STATEMENTS
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for the year ended 31 December 2020
- ACCOUNTING POLICIES
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The trust constitutes a public benefit entity as defined by FRS 102
Accounting convention
The financial statements are prepared under the historical cost convention as modified by the revaluation of investments to market value.
Income recognition
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations and collections
Donations, collections and all voluntary income is accounted for gross when received.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.
Costs of raising funds
The costs of generating funds consist of investment management costs.
Fixed asset investments
Investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout.the year.
2.
| DONATIONS,LEGACIESAND SIMILARINCOME | 2020 | 2019 |
|---|---|---|
| ~~ | £ | |
| Legacy from the late PaulineMatthewsOBE | 2,000 | - |
| PayPal GivingFund | 21 | 145 |
| Regulardonations | 1,463 | 1,473 |
| Gift aidrelief | 366 | 368 |
| 3,850 | 1,986 |
C
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BRECON CATHEDRAL CHOIR TRUST
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020
| 3. | INVESTMENTINCOME AND INTEREST | 2020 | 2019 | ||
|---|---|---|---|---|---|
| £ | £ | ||||
| Interest | 5 | : | |||
| Dividends and interestfrom portfoliomanagedbyBrewin Dolphin | 36,005 | 49,266 | |||
| 36,010 | 49,273 | ||||
| 4. | COSTSOF RAISINGFUNDS | ||||
| Unrestricted | |||||
| Funds | 2020 | 2019 | |||
| £ | £ | £ | |||
| Investmentmanagement fees | 6,132 | 6,132 | 8,108 | ||
| 3: | CHARITABLE ACTIVITIES | ||||
| Unrestricted | |||||
| Funds | 2020 | 2019 | |||
| £ | £ | £ | |||
| Office expenses | 7 | 7 | 13 | ||
| Contribution to salaries paidbyDean and Chapter for:- | |||||
| DirectorofMusic | 18,200 | 18,200 | 18,200 | ||
| Assistant Organist | 7,400 | 7,400 | 7,400 | ||
| Music and singing lessons | 4,620 | 4,620 | 6,552 | ||
| Other choirsupport | 5,292 | §,292 | 10,526 | ||
| Organ expenses | - | - | 645 | ||
| Bankcharges | 85 | 85 | 85 | ||
| ; | 35,604 | 35,604 | 43,421 | ||
| 6. | OTHERCOSTS | Unrestricted | |||
| Funds | 2020 | 2019 | |||
| £ | £ | £ | |||
| Accountants’ charges | 679 | 679 | 636 | ||
| Trusteeindemnity insurance | 140 | 140 | 140 | ||
| 819 | 819 | 776 |
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BRECON CATHEDRAL CHOIR TRUST
| BRECON CATHEDRAL CHOIR TRUSTCHOIR TRUSTTRUST | BRECON CATHEDRAL CHOIR TRUSTCHOIR TRUSTTRUST | |||
|---|---|---|---|---|
| NOTES TOTHEFINANCIALSTATEMENTS |
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| forthe | yearended 31 December 2020 | |||
| 7. | INVESTMENTS | 2020 | 2019 | |
| £ | £ | |||
| Marketvalue at 1 January 2020 | 1,342,567 | 1,205,011 | ||
| Additions to investments at cost | 529,508 | 196,315 | ||
| Disposals at carryingvalue | (554,567) | (191,976) | ||
| 1,317,508 | 1,209,350 | |||
| Net (loss)/gain onrevaluation in theyear | (29,595) | 133,217 | ||
| Market value at 31 December 2020 | 1,287,913 | 1,342,567 | ||
| , | ||||
| Investments atmarket value comprised: | 2020 | 2019 | ||
| £ | £ | |||
| Equities | 1,119,511 | 1,131,681 | ||
| Fixed interest securities | 168,402 | 210,886 | ||
| 1,287,913 | 1,342,567 |
| All investments are carried at theirmarket value. Investments in equities and fixed interest securities are | All investments are carried at theirmarket value. Investments in equities and fixed interest securities are | All investments are carried at theirmarket value. Investments in equities and fixed interest securities are | ||
|---|---|---|---|---|
| all traded in quoted public markets, primarily the London Stock Exchange. | Holdings in common | |||
| investment funds, unit trusts and open ended investment companies are | at thebid price. Asset sales and | |||
| purchases arerecognised at thedateoftrade at theirtransaction value. | ||||
| 8. | DEBTORS | 2020 | 2019 | |
| z | £ | £ | ||
| Gift aid reliefreceivable | 366 | 368 | ||
| Accrued income | - | 51 | ||
| 366 | 419 | |||
| 9. | SHORTTERM DEPOSITS | 2020 | 2019 | |
| £ | £ | |||
| COIF DepositAccount | 1,311 | 1,307 | ||
| 10. | CREDITORS: AMOUNTS FALLING | 2020 | 2019 | |
| . | DUEWITHINONEYEAR | £ | £ | |
| Accrued expenses | 6,960 | 3,450 | ||
| 6,960 | 3,450 |
Page 10
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BRECON CATHEDRAL CHOIR TRUST
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020
| 11. | ANALYSIS OFNETASSETSBETWEENFUNDS | Unrestricted | Total |
|---|---|---|---|
| funds | funds | ||
| £ | £ | ||
| Fundbalances at 31 December 2020 arerepresentedby: | |||
| Investment assets | 1,287,913 | 1,287,913 | |
| Current assets | 91,587 | 91,587 | |
| Current liabilities | (6,960) | (6,960) | |
| 1,372,540 | 1,372,540 |
- REMUNERATION OF TRUSTEES AND CONNECTED PERSONS
No remuneration or reimbursed expenses have been paid to Trustees or connected persons during the year.
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