**Charity Registration No. 1094876**
## **LIVERPOOL CATHEDRAL FOUNDATION**
# **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**President** The Earl of Derby DL **Vice Presidents** Dame Lorna Muirhead DCVO DBE DL Archbishop Malcom McMahon OP, Archbishop of Liverpool Rt Revd Paul Bayes, Bishop of Liverpool – ret. Feb 2022 Rt Hon Lord Alton of Liverpool **Patrons** Miss Joan Armatrading Ms Cherie Booth QC Mr Jonathon Porritt CBE Miss Gillian Reynolds MBE Dame Patricia Routledge DBE CBE **Trustees** The Corporation of the Cathedral Church of Christ in Liverpool **Managing Trustees** Mr Geoffrey Appleton MA LLB Mr John Crane Mr James Davies OBE DL (Chair) Revd Canon Myles Davies (retired 31.01.21) Mr Alistair Fletcher LLB Mr William Fulton DL FCA Mrs Judith Greensmith CBE DL Mr Anthony Hannay LLB Mrs Jayne Hauxwell Very Reverend Dr Sue Jones, Dean of Liverpool Mr David McDonnell CBE DL FCA Mr Dennis Morrison Dame Lorna Muirhead DCVO DBE DL Mr David Renison LLB
**Charity Correspondent and Secretary** Mr Philip Daniel **Director of Fundraising** Ms Rachael Atkinson-White **Charity number** 1094876 **Registered office** Liverpool Cathedral Office St James House 20 St James Road Liverpool L1 7BY **Auditor** BWM Suite 5.1 12 Tithebarn Street Liverpool L2 2DT
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Bankers**
CAF Bank PO Box 289 West Malling Kent ME19 4TA
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Statement of trustees' responsibilities|4|
|Independent auditor's report|5 - 8|
|Statement of financial activities|9 - 10|
|Balance sheet|11|
|Statement of cash flows|12|
|Notes to the financial statements|13 - 21|
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees present their report and the audited accounts for the year ended 31st December 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 15 and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16th July 2014.
## **Objectives and activities**
The objects of the charity are the furtherance of the religious and charitable work of the Cathedral Church of Christ in Liverpool with priority initially being given to discrete projects associated with the Centenary Appeal in 2004 and other projects as they arose. In November 2013 Chapter approved the ‘Strategic Plan 2013’ and the aims in this plan were to form the focus of the Foundation’s work for the next 10 years.
As it is past the half way point of the 2024 Appeal, Chapter has undertaken a review of the Strategic Plan and the Foundation’s role as a fundraising body has been superseded. The Foundation now serves as a monitoring body and its status as a charity assists the Cathedral’s fundraising activity by receiving grants from bodies which are only permitted to make grants to a registered charity.
## **Public Benefit**
The trustees and Managing Trustees continue to pay due regard to Public Benefit guidance issued by the Charity Commission, when considering which new charitable activities are to be undertaken.
## **Director of Fundraising**
The role of Director of Development has become the Director of Fundraising and Rachael Atkinson-White was appointed to this role in May 2020. The intervention during the year of Covid-19 led to a review of the original aims of the 2024 Appeal and its scope for raising additional funds was reduced to 12 individual projects to be completed by 2024 and for which the Director of Fundraising continues to be responsible as well as for a legacy campaign, visitor donations, the People’s Path and the general donor experience. From the start of the appointment and throughout 2021, the Director of Fundraising focused on a successful programme for winning major funding awards from national and local Covid Support Funds.
## **Fundraising Activities, Performance and Future Plans**
The Foundation will continue to assist the Cathedral’s fundraising activity by receiving grant awards where applicable and generally support the work of the Director of Fundraising.
## **Achievements and performance**
## **Financial review**
Income for the year to 31st December 2021 totalled £46,610 (2020: £10,524). Total expenditure was £40,286 (2020: £24,613). Funds carried forward at 31st December 2021 amounted to £27,525 (2020: £20,701). Note 15 & 16 of the Financial Statements shows the allocation of these monies by individual fund. The trustees are pleased with the results for the year considering the difficulties associated with raising income in the current economic climate.
The Foundation continues to bear employment costs of the Fundraising Office, in addition to other support costs. Details of all expenditure are given in Notes 5 to 7 in the Financial Statements.
## **Structure, governance and management**
The Liverpool Cathedral Foundation is constituted under a trust deed dated 15 July 2002. It was registered with the Charity Commission on 2nd December 2002 and its registration number is 1094876.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The Managing Trustees who served during the year were: Mr Geoffrey Appleton MA LLB Mr John Crane Mr James Davies OBE DL (Chair) Mr Alistair Fletcher LLB Mr William Fulton DL FCA Mrs Judith Greensmith CBE DL Mr Anthony Hannay LLB Mrs Jayne Hauxwell Very Reverend Dr Sue Jones, Dean of Liverpool Mr David McDonnell CBE DL FCA Mr Dennis Morrison Dame Lorna Muirhead DCVO DBE DL Mr David Renison LLB Revd Canon Myles Davies (Resigned 31 January 2021)
The Chapter Members of the Corporation of the Cathedral Church of Christ in Liverpool who served during the year were: Revd Canon Myles Davies (Managing Trustee to 31.01.21) Revd Canon Dr Philip Anderson (from 07.02.21) Mrs Judith Greensmith CBE DL (Managing Trustee) Mr Andrew Holroyd CBE Mrs Linda Jones Revd Canon Bob Lewis Revd Canon Ellen Loudon Very Reverend Dr Sue Jones, Dean of Liverpool (Managing Trustee) Mrs Margaret Swinson Revd Canon Dr Neal Barnes Revd Canon Dr Mike Kirby Mr Saro Esmaeili
## **Appointment of Trustees**
The members of Liverpool Cathedral Chapter as the governing body of the Corporation of the Cathedral Church of Christ in Liverpool are the Trustees of the Charity. They have appointed a Committee of Managing Trustees which is charged with the general management and control of the Trust.
Section D (Appointment of Committee) of the Declaration of Trust states that there is to be a minimum of three and a maximum of fifteen Managing Trustees, all of whom shall be nominated by the Trustees. There is to be a minimum of two Trustees appointed as Managing Trustees.
The Managing Trustees meet twice a year, and the Trustees receive minutes of all meetings.
A newly appointed Trustee or Managing Trustee is provided with detailed information on the duties and responsibilities of Trustees, Liverpool Cathedral and the progress of the Foundation. A briefing meeting is held with the Secretary to the Trustees. Individuals are asked to sign a Declaration confirming their eligibility to act, and confirming that their duties will be carried out in good faith, in accordance with the law, and within the charity’s objectives. They are also asked to disclose any potential conflicts of interest, to be disclosed at meetings where relevant.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Grant making policy**
The charity’s grant-funding has in the past been based on grant requests linked primarily with the girls’ voices and specific projects. Unless specific needs arise, the Foundation will in future focus on support for the activities of the Director of Fundraising regarding fundraising connected with the 2024 Appeal and other areas. Restricted funds held by the Foundation are applied in line with the terms originally agreed.
## **Reserves policy**
A modest retention within unrestricted funds is maintained to cover 6 months charity running costs.
Restricted funds are held with the unrestricted funds in an interest bearing charity deposit fund and will only be made available by the trustees against properly supported claims by the Cathedral or its associated entities for the purposes for which the money was originally given. There has been no long term objective to accumulate funds, as it is anticipated that there will be ongoing projects requiring support.
## **Risk Management**
Risks are reviewed on an annual basis. Where identified, additional systems will be established and implemented to manage those risks.
## **Ethical policy**
The trustees have adopted an Ethical Policy approved by the Cathedral Chapter and linked with Church of England guidelines.
## **Connected charities**
The trustees of The Liverpool Cathedral Foundation are The Corporation of the Cathedral Church of Christ in Liverpool.
The Liverpool Cathedral Foundation is administered by Managing Trustees, some of whom are connected with or related to the Corporation of the Cathedral Church of Christ in Liverpool.
Where relevant, transactions between related parties have been disclosed in note 18 to the accounts.
The trustees' report was approved by the Board of Trustees.
## **Mrs Judith Greensmith CBE DL**
## Trustee
Dated: 31 October 2022
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare accounts 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 accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts;
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and 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.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF LIVERPOOL CATHEDRAL FOUNDATION**
## **Opinion**
We have audited the financial statements of Liverpool Cathedral Foundation (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance 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 other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LIVERPOOL CATHEDRAL FOUNDATION**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible 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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
## **The extent to which the audit was considered capable of detecting irregularities including fraud**
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations.
- we identified the laws and regulations applicable to the charity through discussions with trustees and other management.
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011, data protection, antibribery, and health and safety legislation.
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LIVERPOOL CATHEDRAL FOUNDATION**
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matters**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LIVERPOOL CATHEDRAL FOUNDATION**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **BWM**
## **Date** 31 October 2022
**Chartered Accountants Statutory Auditor**
Suite 5.1 12 Tithebarn Street Liverpool L2 2DT
BWM is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Current financial year**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**Notes**
**£**
**2021**
**£**
**Income from:**
Donations and legacies
**3**
40,138
6,220
Investments
**4**
252
-
**Total income**
40,390
6,220
**Expenditure on:**
Charitable activities
**5**
39,626
660
**Total resources expended**
39,626
660
Net gains/(losses) on investments
**10**
500
-
**Net movement in funds**
1,264
5,560
Fund balances at 1 January 2021
4,844
15,857
**Fund balances at 31 December 2021**
6,108
21,417|**Total**
**2021**
**£**
46,358
252
46,610
40,286
40,286
500
6,824
20,701
27,525|Total
2020
**£**
10,449
75|
|---|---|---|
|||10,524|
|||24,613|
|||24,613|
|||(704)|
|||(14,793)
35,494
20,701|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Prior financial year**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Notes**
**2020**
**£**
**2020**
**£**
**Income from:**
Donations and legacies
**3**
4,764
5,685
Investments
**4**
75
-
**Total income**
4,839
5,685
**Expenditure on:**
Charitable activities
**5**
3,270
21,343
**Total resources expended**
3,270
21,343
Net gains/(losses) on investments
**10**
(704)
-
**Net movement in funds**
865
(15,658)
Fund balances at 1 January 2020
3,979
31,515
**Fund balances at 31 December 2020**
4,844
15,857|**Total**
**2020**
**£**
10,449
75|
|---|---|
||10,524|
||24,613|
||24,613|
||(704)|
||(14,793)
35,494
20,701|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2021**_
|**Notes**
**Fixed assets**
Investments
**11**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**15**
Unrestricted funds|**2021**
**£**
185
70,325
70,510
(45,467)|**£**
2,482
25,043
27,525
21,417
6,108
27,525|**2020**
**£**
267
23,748
24,015
(5,296)|**£**
1,982
18,719|
|---|---|---|---|---|
|||||20,701|
|||||15,857
4,844
20,701|
The financial statements were approved by the Trustees on 31 October 2022.
Mrs Judith Greensmith CBE DL **Trustee**
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
**19**
operations
**Investing activities**
Interest received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
252
|**£**
46,325
252
-
46,577
23,748
70,325|**2020**
**£**
75|**£**
(36,617)
75
-|
|---|---|---|---|---|
|||||(36,542)
60,290
23,748|
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**LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **Charity information**
Liverpool Cathedral Foundation is a charitable trust registered in England and Wales. The principal address is Liverpool Cathedral Office, St James House, 20 St James Road, Liverpool, L1 7BY.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's trust deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the accounts the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the ‘going concern’ basis of accounting in preparing the accounts.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset and disclosed in the accounts.
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## **LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(continued)**
Grants are recognised in the statement of financial activities when the conditions for receipt have been complied with.
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).
Income from trading activities includes income earned form fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
Investment income is earned through holding assets for investment purposes such as shares and bank deposits. It includes dividends and interest. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established.
## **1.5 Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
It is categorised under the following headings:
- Expenditure on charitable activities includes Grants payable to The Corporation of Liverpool Cathedral.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
## **1.6 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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**LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(continued)**
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.9 Taxation**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 15 -
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **3 Donations and legacies**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
40,390
6,220
**Donations and gifts**
Cathedral Boys and Girls'
Voices
-
660
Organ Fund
-
1,240
General funds
40,390
-
2024 Appeal
-
-
40,390
6,220|**Total**
Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
46,610
4,764
5,685
660
-
755
1,240
-
610
40,390
4,764
-
4,320
-
4,320
46,610
4,764 5,685|Total
2020
£
10,449|
|---|---|---|
|||755
610
4,764
4,320|
|||10,449|
## **4 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Dividends|252|75|
- 16 -
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**5**
**Charitable activities**
Grant funding of activities (see note 6)
Share of support costs (see note 7)
Share of governance costs (see note 7)
**Analysis by fund**
Unrestricted funds
Restricted funds
**Analysis by fund**
Unrestricted funds
Restricted funds
**6**
**Grants payable**
Projects funded by grants:
2024 Appeal
The Corporation of Liverpool Cathedral unrestricted grants|**2021**
**£**
38,071
115
2,100
40,286
660
39,626
40,286
**2021**
**£**
-
38,071
38,071|**2020**
**£**
22,439
74
2,100|
|---|---|---|
|||24,613|
|||3,270
21,343|
|||24,613|
|||**2020**
**£**
21,343
1,096
22,439|
- 17 -
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**7**
**Support costs**
**Support**
**Governance**
**costs**
**costs**
**£**
**£**
Administrative support
costs
115
-
Audit fees
-
1,350
Accounts fees
-
750
115
2,100
Analysed between
Charitable activities
115
2,100|**2021**
Support
Governance
costs
costs
**£**
£
£
115
74
-
1,350
-
1,350
750
-
750
2,215
74
2,100
2,215
74
2,100|2020
£
74
1,350
750|
|---|---|---|
|||2,174|
|||2,174|
Governance costs includes payments to the auditors of £2,100 in respect of the accounts to the year ended 31 December 2021 (2020: £2,100).
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits/ expenses from the charity during the year or the previous period.
## **9 Employees**
There are no employees during the year. As the charity does not employ any of its own staff, it does not have any key management personnel costs.
## **10 Net gains/(losses) on investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Fair value movement|500|(704)|
- 18 -
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **11 Fixed asset investments**
|**Cost or valuation**
At 1 January 2021
Valuation changes
At 31 December 2021
**Carrying amount**
At 31 December 2020
At 31 December 2021
**12**
**Financial instruments**
**Carrying amount of financial assets**
Debt instruments measured at amortised cost
Equity instruments measured at fair value
**Carrying amount of financial liabilities**
Measured at amortised cost
**13**
**Debtors**
**Amounts falling due within one year:**
Gift Aid recoverable
**14**
**Creditors: amounts falling due within one year**
Grants due to The Corporation of Liverpool Cathedral
Other Creditors|**Listed**
**investments**
**£**
1,982
500
2,482
2,482
1,982
**2021**
**2020**
**£**
**£**
70,325
24,015
2,482
1,982
45,467
5,296
**2021**
**2020**
**£**
**£**
185
267
**2021**
**2020**
43,050
3,184
2,417
2,112
45,467
5,294|
|---|---|
- 19 -
## **LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **15 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**|||
|---|---|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**||**Balance at**
**Incoming**||**Resources**||**Balance at**|
||**1 January 2020**|**resources**|**expended**||**1 January 2021**
**resources**||**expended**||**31 December**|
||||||||||**2021**|
||**£**|**£**|**£**||**£**|**£**|**£**||**£**|
|Cathedral Boys and Girls' Voices|1,628|755|-||2,383|660|(660)||2,383|
|Organ|6,780|610||-|7,390|1,240|-||8,630|
|Education Learning Officer|1,679|-|-||1,679|-|-||1,679|
|2024 Appeal|21,343|4,320|(21,343)||4,320|4,320||-|8,640|
|SEPAS|85|-|-||85|-|-||85|
||31,515|5,685|(21,343)||15,857|6,220|(660)||21,417|
Cathedral Boys and Girls' Voices - to provide the funding necessary to run a girls' choir for an initial period which covered the period of the Cathedral's Centenary Celebrations and beyond.
Organ & Lady Chapel Organ - to provide funding for the maintenance of the cathedral organ.
Education Community Learning Officer - to provide funding for a new Education Department post to enable further ecumenical projects to be undertaken with Liverpool Metropolitan Cathedral.
2024 Appeal - 2024 refers to Liverpool Cathedral's '2024' Appeal launched on 20 July 2014 for £24m to provide for fabric repairs, major projects to be undertaken over the next ten years and an endowment fund for subsequent maintenance.
SEPAS - to provide funding for the weekly meeting of prayer, praise and Bible teaching translated into Farsi.
- 20 -
**LIVERPOOL CATHEDRAL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **16 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31
December 2021 are
represented by:
Investments
2,482
-
Current assets/
(liabilities)
3,626
21,417
6,108
21,417|**Total** Unrestricted
funds
Restricted
funds
**2021**
2020
2020
**£**
£
£
2,482
1,982
-
25,043
2,862
15,857
27,525
4,844
15,857|Total
2020
£
1,982
18,719
20,701|
|---|---|---|
## **17 Financial commitments, guarantees and contingent liabilities**
There were no contingent liabilities or capital commitments at 31 December 2021 (2020: £Nil).
## **18 Related party transactions**
The Liverpool Cathedral Foundation is administered by Managing Trustees who are nominated by the Corporation of the Cathedral Church of Christ in Liverpool. The results of the Liverpool Cathedral Foundation have, therefore, been included in the consolidated results of the Corporation. As a result the charity has taken advantage of the exemption available under FRS 102 not to disclose transactions with other consolidated entities.
Copies of the consolidated accounts of 'The Corporation of the Cathedral Church of Christ in Liverpool', may be obtained from the Administrator, Liverpool Cathedral, St James Mount, Liverpool L1 7AZ.
|**19**
**Cash generated from operations**
(Deficit)/surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Movements in working capital: (Increase)/decrease
in debtors
(Decrease) in creditors
**Cash (absorbed by)/generated from operations**|**2021**
**£**
**2020**
**£**
6,824
(14,793)
(252)
(75)
(500)
704
82
(90)
40,171
(22,363)
46,325
(36,617)|
|---|---|
- 21-