THE ASSOCIATION OF ENGLISH CATHEDRALS
REPORT OF THE EXECUTIVE COMMITTEE AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Company No. 06726262 Charity Registration: 1128254
Registered Office: 8 Kingswood Drive London SE19 1UR
THE ASSOCIATION OF ENGLISH CATHEDRALS
| Contents | Page |
|---|---|
| Report of the Executive Committee | 1- 8 |
| Report of the Independent Examiner | 9 |
| Statement of Financial Activities | 10-11 |
| Balance Sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the Accounts | 14 – 18 |
| Income and Expenditure Account (for directors’ use only) | 19 |
THE ASSOCIATION OF ENGLISH CATHEDRALS
REPORT OF THE EXECUTIVE COMMITTEE FOR THE YEAR ENDING 31 DECEMBER 2021
The members of the Executive Committee have pleasure in presenting their report together with the financial statements of the Association for the year ended 31 December 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The executive confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Reference and administrative information Principal address and registered office The principal address of the Association is: 8 Kingswood Drive London SE19 1UR Company registered number: 06726262 Charity registered number: 1128254
Executive
The names of the persons who were members of the Executive Committee (trustees of the charity and directors of the company) at any time during the year ended 31 December 2021 or have been appointed since that date were as follows:
The Very Rev’d Adrian Dorber, Dean of Lichfield (Chair) Mr David Bilton, Chapter member, Newcastle Cathedral Mr David Coulthard, Communar, Chichester Cathedral Ms Emma Davies, Registrar, St Paul’s Cathedral (resigned April 2022) The Very Rev’d Rogers Govender, Dean of Manchester The Rev’d Canon Simon Griffiths, Canon, Truro Cathedral (appointed February 2022) The Very Rev’d Peter Howell-Jones, Dean of Blackburn The Rev’d Canon Dr Jessica Martin, Residentiary Canon, Ely Cathedral (resigned September 2021) The Very Rev’d David Monteith, Dean of Leicester The Rev’d Canon Aidan Platten, Canon, Norwich Cathedral The Rev’d Canon David Stone, Sub-Dean, Coventry Cathedral (resigned June 2021) The Rev’d Canon Celia Thomson, Canon, Gloucester Cathedral (resigned February 2022) The Very Rev’d Andrew Tremlett, Dean of Durham
The Rev’d Canon Matthew Vernon, Sub-Dean, St Edmundsbury Cathedral (appointed February 2022)
Senior staff
Mrs Sarah King, Executive Director
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Principal advisers Bankers
Independent Examiner
The Co-operative Bank PO Box 250, Delf House Southway Skelmersdale WN8 6WT
Mr J F Fletcher FCA Fletcher & Partners Crown Chambers Bridge Street Salisbury SP1 2LZ
Structure, governance and management
Governing document
The Association of English Cathedrals was established as an unincorporated association in 1990. The company limited by guarantee number 06726262 was incorporated on 16 October 2008 and became a registered charity in England and Wales charity number 1128254 on 25 February 2009. The Association is governed by its Articles of Association as adopted on 14 June 2016.
Under the Companies Act 2006 the trustees have the status of directors. This report therefore constitutes a directors’ report as required by section 477 of the Companies Act 2006 and has been prepared taking advantage of the exemptions conferred by section 476 of this Act.
The members of the Association are the administrative bodies of the 42 English Anglican Cathedrals. Westminster Abbey, St George’s Chapel, Windsor, St German’s Cathedral, Isle of Man and St Davids Cathedral are associate members. In the event of the Association winding up, each member undertakes to contribute an amount not exceeding £10. Upon the winding up or dissolution of the Association, all remaining assets shall be given or transferred to another charity having the same or similar objects to the Association in accordance with charity law.
Organisational structure and decision making
The trustees of the Association of English Cathedrals are known as Executive Committee members and are also the company directors. The management of the Association is vested in the Executive Committee, which is responsible for delivery of the Association’s objects and setting the strategic direction. The Committee manages and exercises all the powers of the charity in accordance with the Memorandum and Articles of Association.
The Executive Committee is assisted in its work by a number of working groups, formed of Executive Committee members and others with relevant expertise and experience. The working groups are formed to deliver specific projects and meet as and when required. Notes of all meetings are given to the Executive Committee.
The Executive Committee delegates day-to-day running of the Association to the Executive Director, Sarah King.
Executive Committee recruitment and appointment
The members elect nine members of the Executive Committee. The nine members must include no fewer than four deans and no fewer than four other Chapter members (excluding administrators); no fewer than three members must come from each Province of the Church of England. There are three ex-officio trustees: the Chair of the College of Deans, the Chair of the Cathedrals Administration and Finance Association and another member of the Executive Committee of that Association. At every annual general meeting one-third, or the number nearest to (but not greater than) one third, of the elected Committee members retire from office, but are eligible for re-appointment by the members. Those standing down are
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those who have been longest in office since their last appointment or re-appointment. There is no fixed term for appointment as a Committee member.
The Executive Committee has the power to co-opt new members but those co-opted have to stand for election at the following annual general meeting. Co-options are made to provide an appropriate balance of skills, experience and gender, and to ensure that cathedrals of different types and with a geographical spread are represented on the Committee.
Remuneration
Staff salaries are reviewed annually in July and any increase is in line with the pay rises given at Lichfield Cathedral.
Objectives and activities
Object
The object of the Association of English Cathedrals is to advance the Christian religion for the benefit of the public in accordance with the doctrines of the Church of England and to further the mission of the Anglican religion by:
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(1) Supporting the English Anglican cathedrals (the members of the Charity) and Westminster Abbey, St George’s Chapel, Windsor, St German’s Cathedral, Isle of Man and St Davids Cathedral in their work of advancing the Christian religion by representing the common interests of cathedrals both in national and ecclesiastical contexts.
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(2) Working with the National Church Institutions and other parts of the Church of England in furthering the mission and work of cathedrals;
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(3) Working with the Churches’ Legislation Advisory Service and other appropriate ecumenical bodies in furthering the mission and work of cathedrals;
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(4) Working with the Government and its agencies to represent the interests of cathedrals and achieve an environment where cathedrals are enabled to fulfil their mission and work;
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(5) Debating and proposing policies and other matters affecting cathedrals, including their role in advancing education; community development; arts, culture and heritage; and environmental protection and improvement. Also assisting in developing their role in promoting religious and racial harmony and equality and diversity; and
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(6) Encouraging the development and sharing of best practice between cathedrals.
Information about the activities undertaken during the year is set out below in the section describing achievements and performance. The Executive Committee members consider that all activities undertaken have been for the public benefit, and that they have paid due regard to guidance from the Charity Commission ‘Public Benefit: running a charity (PB2)’ in determining what work is done.
The Charity Commission in its ‘Charities and Public Benefit’ Guidance requires that there are two key principles to be met in order to show that an organisation’s aims are for the public benefit: first, there must be an identifiable benefit, and secondly, the benefit must be to the public or a section of the public.
Executive Committee
The membership of the Executive Committee changed during the year. David Stone stood down at the Annual General Meeting as he was leaving Coventry Cathedral to take up another post, and Jessica Martin resigned in September 2021 following her appointment to another non-executive role. Peter Howell-Jones and Andrew Tremlett were re-elected to the Committee. In February 2022, the Executive Committee co-opted Simon Griffiths and
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Matthew Vernon to fill the two vacancies on the Committee. Celia Thomson retired from Gloucester Cathedral in February 2022 and resigned from the Executive Committee at the same time.
Achievements and performance
The Executive Committee met on six occasions during the year to discuss matters of interest to the members, agree actions and review progress, All these meetings were held by Zoom. An in-person strategy day was held in November at the Royal Foundation of St Katharine. An Annual General Meeting (AGM) attended by representatives of the Association’s members was held as usual in June, for a second year by Zoom due to the restrictions arising from the Covid-19 pandemic. At the strategy day, the Committee reflected on the role of the Association, having regard to other entities providing national support to cathedrals, including the College of Deans and CAFA from within the cathedral sector and also the Church Commissioners which provides funding, regulates and supports cathedrals. A Statement of Purpose was devised.
The AEC’s activities were disrupted by the pandemic. Induction training courses for new Chapter members were held were held using Zoom in February and March, following the cancellation of two training sessions in 2020, and again in May. In October, it was possible to hold an in-person session. Induction courses are an invaluable opportunity for those attending to understand more about the role and ways of working of cathedrals and to develop a bigger picture of cathedral life, enabling them to discharge their responsibilities with greater knowledge and skill.
The Committee continues to work closely with the Church of England’s National Safeguarding Team and the cathedral lead on safeguarding matters, the Very Rev’d Stephen Lake, Dean of Gloucester, to ensure that cathedrals are alert to and implement good practice in safeguarding; it recognises the importance of providing the best possible care to children and adults at risk in cathedral contexts. The AEC worked with the National Safeguarding Team to facilitate the review of various policies and procedures and to ensure that cathedrals were aware of training sessions and support available.
The AEC worked with the Church Commissioners in supporting the smooth implementation of the new Cathedrals Measure which received its final approval from General Synod in November 2020 and passed its parliamentary stages before receiving the Royal Assent in April 2021.
The Communications Project, which aims to improve the profile of cathedrals in traditional and social media at a national level and encourage the development of communications skills in cathedrals, helped keep cathedrals in the public eye through the vicissitudes of the Covid-19 pandemic and supported cathedrals in their response to and recovery from the pandemic. In line with plans agreed in 2019, the project’s two media professionals worked an extra half day each week, increasing the time each spent working to two days a week. The additional time was well used in telling stories of what cathedrals were doing through lockdowns and closures, and, as they re-opened, affirming that cathedrals were still at the centre of their communities. The AEC’s website and social media continued to be key to the Project. The AEC’s social media activity grew through the year, reaching people who are less likely to read traditional media. A Project Board, chaired by David Stone until June and subsequently by Jonathan Greener, the Dean of Exeter, oversees the Project on behalf of the Committee. Board members are drawn from communications specialists working in cathedrals and the National Church Institutions (NCIs).
Plans for the continued roll out of peer reviews in 2021 were again disrupted by the Covid-19 pandemic. All four reviews which were completed in the year took place between September and November. The Project Board, chaired by Andrew Nunn, the Dean of Southwark, met twice in the year to oversee the project on behalf of the Committee, once by Zoom but in
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November in person. Reviews planned for earlier in 2021 were rescheduled, with dates being agreed in 2022 and 2023. Already, six reviews have been conducted in 2022. The Project Board plans to conduct a survey later in 2022 of those cathedrals which have participated in a peer review in order to gain feedback on their experience, how they perceived its value, the level of challenge provided, and whether it influenced their future activity. The survey results will help the Project Board and Committee, and also the Church Commissioners as the project’s funders, assess the value of peer review and formulate plans for a possible second round of reviews. Les West, as Project Manager, and Moira Dean, as Project Coordinator, organise the reviews and recruitment and training of new reviewers.
The Chapter Training Project, which provided training to Chapters in the areas of financial management and sustainability, governance, and strategic marketing for growth was concluded during the year. The surplus funding was returned to the Church Commissioners to be used to fund training related to implementation of the new Measure.
The Cathedral and Major Church Projects Support Panel’s Project Board continues to be chaired by Peter Howell-Jones. The AEC manages the day to day affairs of the project as set out in the memorandum of understanding with the Major Churches Network. The pandemic has continued to adversely affect the work of the Panel. The volume of requests for assistance has diminished in comparison to pre-Covid times, although cathedrals and especially major churches have taken part in strategic planning workshops which have been delivered successfully online. In the autumn of 2020 and in early 2022, a few in-person visits took place. Anne Locke, Cathedrals Coordinator, and Nick Chapple, Major Church Coordinator, answer questions and match cathedrals and major churches with panel members. Reports on the project’s progress were made regularly to the Committee and also to the project funders, the Benefact (formerly Allchurches) Trust and the Church Commissioners.
The pandemic had a significant impact on plans for ‘2020 Year of Cathedrals Year of Pilgrimage’. The decision was made to extend the project’s life as ‘Discover Cathedrals, Discover Pilgrimage’. During the year, a volunteer management framework and an online training module for volunteers, both produced in conjunction with the Centre for the Study of Christianity and Culture at the University of York, were launched, and were well received. Some cathedrals were able to host ‘Cathedrals at Night’ evenings successfully in a Covidsafe way which attracted visits from local people and younger people who are not traditional cathedral visitors. Pilgrim Passports continue to sell and encourage visits to cathedrals. The AEC assisted with the launch of a new Cathedral Cycle Route, the brainchild of a research student attached to Newcastle Cathedral, which is promoting a new way of travelling between cathedrals.
In August 2021 a report showing the Economic and Social Impacts of English Cathedrals, commissioned by the AEC and produced by Ecorys, was published. The report was accompanied by an infographic setting out the key findings. These were sent to ministers in relevant government departments, leaders within the NCIs and their governing bodies, and other sector and strategic partners, and also to all cathedrals, which circulated them to local stakeholders including politicians. The report, which was based on survey data from both 2019 (pre-pandemic) and 2020, showed that in 2019 cathedrals attracted over 9.5 million tourists, an increase of 15% on 2014, generated a net contribution of £107 million and a combined total of £235 million in local spending, and supported 5,535 jobs in their local economies. They were supported by over 15,000 volunteers who contributed an estimated 906,000 hours, equivalent to 500 full-time employees. The research also showed the impact of Covid-19 on cathedrals, particularly in significantly lower non-visitor and visitor related income, but also the response of cathedrals in reaching people in new ways and providing additional support services. The research is a valuable tool in demonstrating the value of cathedrals to government, both central and local, in economic and social terms.
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The AEC has continued its membership of the Churches Legislation Advisory Service and the Charity Tax Group so that it can work with the wider church and charity sector, and also to provide information to cathedrals on relevant legislative changes and developments in charity taxation. These memberships proved advantageous as HMRC issued new guidance in February 2021 to resolve an issue relating to cathedrals and VAT for which the AEC and the two organisations had campaigned for a number of years.
The AEC, as a member, works closely with the Heritage Alliance, the biggest alliance of heritage interests in England furthering the interests of heritage organisations. It is also a member of the Heritage Alliance’s Historic Religious Buildings’ Group. The AEC continues to work in partnership with the Association of Leading Visitor Attractions (ALVA), sharing information and participating in webinars and meetings, ensuring that cathedrals, which are important tourist attractions, are supported in improving their visitor offers. These relationships were especially valuable during 2021, as they ensured cathedrals were part of the visitor sector response to the pandemic.
Executive members and the Executive Director worked with government departments and other national bodies on a number of issues relating to cathedrals and appropriate action has been taken to represent the interests of cathedrals by commenting on forthcoming legislation. Of note this year was the AEC’s response on behalf of cathedrals to the Home Office’s Protect Duty consultation.
The Executive Director provided support to cathedrals in a number of areas, facilitating meetings using Zoom for members of various cathedral networks, and also produced good practice papers and guidance notes, assisting cathedrals in their work. Moira Dean is providing support for the new CAFA website which has a growing library of documentation covering a wide range of topics; the website facilitates the sharing of good practice.
Financial review
Results of the period
Income was £95,513 less than expenditure (2020, income was £19,284 less than expenditure). Unrestricted income exceeded expenditure by £2,609 (2020: unrestricted income exceeded expenditure by £16,273), and restricted income was £98,122 less than expenditure (2020: income was £35,557 less than expenditure).
Income of £196,110 was broadly similar to that of 2020 (£194,133). Grant income of £56,675 was lower than that of 2020 (£72,580). The Communications Project, funded by cathedrals, increased capacity to eight working days a month in 2021, rising from six working days per month in 2020. Income for the Project increased to £70,780 in 2021 from £55,851 in 2020. Due to lower activity levels as a result of the pandemic, the AEC took advantage of Coronavirus Job Retention Scheme support, with members of staff on flexi-furlough from the start of the year to the end of September (when the Scheme ended). Coronavirus Job Retention Scheme receipts were £7,618 (2020 £3,064).
Expenditure was higher than the previous year at £291,623 (2020: £213,417). The Chapter Training Project was concluded during the year and surplus funding of £60,987 was repaid to the Church Commissioners, the Project’s funders. There were increased costs for the Communications Project and on Peer Reviews following their resumption in the autumn. Expenditure on the Discover Cathedrals Discover Pilgrimage Project declined as the pandemic affected delivery of the renamed project (2021, £22,362; 2020, £59,656).
Reserve policy and future prospects
Reserves are needed to bridge the gap between the spending and receiving of resources and to cover unplanned expenditure. Income from subscriptions and contributions to employment costs and the Communications Project is received at one point in the year,
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whereas expenditure, including salary payments, continues throughout the year. Whilst the Executive always seeks to fund projects with grants, reserves are also needed to fund projects which arise from time to time which are important to cathedrals nationally. In normal times Executive Committee members aim to maintain a reserve equivalent to six months unrestricted and recurring restricted expenditure for cash flow purposes. In 2021, the target reserves level was £64,000. The Committee is rebuilding reserves to the desired level through subscriptions, the primary source of unrestricted income, and controlling expenditure. The reserves policy is reviewed annually when the budget for the following year is approved.
At the year end, free reserves were £36,877 (2020: £34,268).
Fundraising activity
The Association does not currently employ anyone dedicated to fundraising, nor does it use external fundraisers or commercial participators. The Association has not received any complaints about its fundraising activities and practices.
Risk management
The members of the Executive regularly consider the risks which the Association may face. They are satisfied that there are adequate reserves in place to mitigate any financial risk, and deem any reputational risk to be slight. The principal risk facing the Association is the loss of the Executive Director, which is mitigated by a three-month notice period and adequately documented work. In respect of other risks, they consider there are adequate contingency plans appropriate to the size of the Association in place to lessen their effect.
Plans for future periods
The Executive Committee continues to review how it can best support cathedrals in their work. It will continue to run and establish projects which support Chapters and staff working in cathedrals to develop well-governed, strategically focussed and sustainable cathedrals. Over the next year, plans include assisting through the Cathedral and Major Church Project Support Panel as cathedrals continue to re-assess their operations in the light of the impact of the pandemic, continuing with peer reviews, and working with cathedrals through the Discover Cathedrals Discover Pilgrimage Project to attract visitors back to cathedrals.
Plans for a second National Cathedrals Conference in Newcastle in May 2022 are well advanced, with all member cathedrals booked to attend as well as a number of delegates from other cathedrals, the NCIs, and related organisations. The Committee wishes to express its gratitude to the Conference’s main sponsor, CCLA, for its considerable financial support, as well as to the Church Commissioners and Kirby Laing Foundation for grants to help with costs and to provide bursaries to enable more cathedral representatives to attend respectively. A number of other sponsors are supporting the Conference. The finances for the Conference are being managed by Manchester Cathedral Hire Ltd on behalf of the AEC.
Going concern
The Executive Committee expects the AEC to have adequate resources to continue in operational existence for the foreseeable future. It continues to adopt the going concern basis of accounting in preparing the annual financial statements.
Trustees’ responsibilities in relation to the financial statements
The charity trustees (who are also the directors of the Association of English Cathedrals for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practices including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland).
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Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing the 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 (FRS102);
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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 charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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 Companies Act 2006. 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.
Disclosure of information to the Independent Examiner
To the knowledge and belief of the Executive Committee, there is no relevant information of which the charitable company’s Independent Examiner is not aware, and it has taken all necessary care to ensure and establish that the Independent Examiner is aware of any relevant information.
Approved by order of the Executive Committee and signed on their behalf by:
Adrian Dorber Chair
3 May 2022
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THE ASSOCIATION OF ENGLISH CATHEDRALS
REPORT OF THE INDEPENDENT EXAMINER TO THE MEMBERS OF THE EXECUTIVE COMMITTEE OF THE ASSOCIATION OF ENGLISH CATHEDRALS
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2021.
Responsibilities and basis of report
As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the 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 matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for 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 (FRS 102)].
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.
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. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed: Dated:
James Fletcher FCA Fletcher & Partners Chartered Accountants Crown Chambers Bridge Street Salisbury SP1 2LZ
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THE ASSOCIATION OF ENGLISH CATHEDRALS
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| Note | Unrestricted | Restricted | Total | |
|---|---|---|---|---|
| funds | funds | 31.12.21 | ||
| £ | £ | £ | ||
| Income from donations | ||||
| Membership subscriptions | 18,400 | - | 18,400 | |
| Grants | - | 56,675 | 56,675 | |
| Coronavirus Job Retention Scheme | 7,618 | - | 7,618 | |
| 26,018 | 56,675 | 82,693 | ||
| Income from charitable activities | ||||
| Contributions to staff costs | 6 | - | 37,750 | 37,750 |
| Contributions to Communications Project | 6 | - | 70,780 | 70,780 |
| Chapter training course fees | 2,610 | - | 2,610 | |
| Other income | 23 | 2,116 | 2,139 | |
| 2,633 | 110,646 | 113,279 | ||
| Income from investments | ||||
| Bank deposit interest | 138 | - | 138 | |
| Total income | 28,789 | 167,321 | 196,110 | |
| Expenditure on: | ||||
| Charitable activities supporting the English Anglican cathedrals | ||||
| Staff costs | 6 | - | 36,366 | 36,366 |
| Executive meetings | 2,891 | - | 2,891 | |
| Working groups | 2,001 | - | 2,001 | |
| Discover Cathedrals etc. Project | 6 | - | 22,362 | 22,362 |
| Cathedral & Major Church Projects Support | Panel 6 | - | 27,571 | 27,571 |
| Chapter Training | 6 | 3,292 | 60,987 | 64,279 |
| Communications Project | 6 | - | 73,463 | 73,463 |
| Peer Review Project | 6 | - | 31,390 | 31,390 |
| Economic and Social Impacts Survey | 6 | 475 | 19,602 | 20,077 |
| CAFA Website | 6 | - | 1,320 | 1,320 |
| Conferences | 182 | - | 182 | |
| English cathedrals website | 6,570 | - | 6,570 | |
| Subscriptions | 1,013 | - | 1,013 | |
| 16,424 | 273,061 | 289,485 | ||
| Other | ||||
| Governance | 11 | 960 | - | 960 |
| Insurance | 545 | - | 545 | |
| Other | 633 | - | 633 | |
| 2,138 | - | 2,138 | ||
| Total expenditure | 18,562 | 273,061 | 291,623 | |
| Net income/ (expenditure) | 10,227 | (105,740) | (95,513) | |
| Transfers between funds | (7,618) | 7,618 | - | |
| Net movements in funds | 6,7 | 2,609 | (98,122) | (95,513) |
| Reconciliation of funds: | ||||
| Total funds brought forward | 6,7 | 34,268 | 293,299 | 327,567 |
| Total funds carried forward | 6,7 | £36,877 | £195,177 | £232,054 |
The notes on pages 14 to 18 form part of these accounts
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THE ASSOCIATION OF ENGLISH CATHEDRALS
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 Comparative information
| Comparative information | ||||
|---|---|---|---|---|
| Note | Unrestricted | Restricted | Total | |
| funds | funds | 31.12.20 | ||
| £ | £ | £ | ||
| Income from donations | ||||
| Membership subscriptions | 23,000 | - | 23,000 | |
| Grants | - | 72,580 | 72,580 | |
| Coronavirus Job Retention Scheme | 3,064 | - | 3,064 | |
| 26,064 | 72,580 | 98,644 | ||
| Income from charitable activities | ||||
| Contributions to staff costs | 6 | - | 37,750 | 37,750 |
| Contributions to Communications Project | 6 | - | 55,851 | 55,851 |
| Chapter training course fees | 600 | - | 600 | |
| Other income | - | - | - | |
| 600 | 93,601 | 94,201 | ||
| Income from investments | ||||
| Bank deposit interest | 1,288 | - | 1,288 | |
| Total income | 27,952 | 166,181 | 194,133 | |
| Expenditure on: | ||||
| Charitable activities supporting the English Anglican cathedrals | ||||
| Staff costs | 6 | - | 36,905 | 36,905 |
| Executive meetings | 1,221 | - | 1,221 | |
| Working groups | 631 | - | 631 | |
| 2020 Year of Cathedrals etc. Project | 6 | - | 59,656 | 59,656 |
| Cathedral & Major Church Projects Support | Panel 6 | - | 24,299 | 24,299 |
| Chapter Training | 6 | 500 | 119 | 619 |
| Communications Project | 6 | - | 47,338 | 47,338 |
| Peer Review Project | 6 | - | 19,407 | 19,407 |
| Economic and Social Impacts Survey | 6 | - | 17,078 | 17,078 |
| Grant to CSCC Covid impacts survey | 2,000 | - | 2,000 | |
| Conferences | 324 | - | 324 | |
| English cathedrals website | 1,866 | - | 1,866 | |
| Subscriptions | 927 | - | 927 | |
| 7,469 | 204,802 | 212,271 | ||
| Other | ||||
| Insurance | 498 | - | 498 | |
| Other | 648 | - | 648 | |
| 1,146 | - | 1,146 | ||
| Total expenditure | 8,615 | 204,802 | 213,417 | |
| Net income/ (expenditure) | 19,337 | (38,621) | (19,284) | |
| Transfers between funds | (3,064) | 3,064 | - | |
| Net movements in funds | 6,7 | 16,273 | (35,557) | (19,284) |
| Reconciliation of funds: | ||||
| Total funds brought forward | 6,7 | 17,995 | 328,856 | 346,851 |
| Total funds carried forward | 6,7 | £34,268 | £293,299 | £327,567 |
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THE ASSOCIATION OF ENGLISH CATHEDRALS
BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Current assets: Debtors and prepayments 4 Cash at bank Liabilities: Creditors: amounts due within one year 5 Net current assets The funds of the Charity: Restricted funds 6 Unrestricted funds 7 Total Charity funds |
Year ended 31.12.2021 £ 12,268 230,070 242,338 (10,284) £232,054 195,177 36,877 £232,054 |
Year ended 31.12.2020 £ 1,641 331,819 333,460 (5,893) £327,567 293,299 34,268 £327,567 |
|---|---|---|
The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies’ regime.
The financial statements were approved and authorised for issue by the Executive Committee on 3 May 2022 and signed on their behalf by:
Adrian Dorber Chair
The notes on pages 14 to 18 form part of these accounts
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THE ASSOCIATION OF ENGLISH CATHEDRALS
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021
| Year ended | Year ended | |
|---|---|---|
| 31.12.2021 | 31.12.2020 | |
| £ | £ | |
| Cash flows from operating activities: | ||
| Cash receipts | 185,415 | 191,204 |
| Cash payments | (287,302) | (217,161) |
| Net cash(used)/ provided by operating activities | (101,887) | (25,957) |
| Cash flows from investing activities: | ||
| Interest | 138 | 1,288 |
| Net cash provided by investing activities | 138 | 1,288 |
| Change in cash in the reporting period | (101,749) | (24,669) |
| Cash at beginning of the reporting period | 331,819 | 356,488 |
| Cash at end of the reporting period | £230,070 | £331,819 |
| Reconciliation of net income to net cash flow from | operating activities | |
| Net income/ (expenditure) for the reporting period | £ |
£ |
| (as per the statement of financial activities) | (95,513) | (19,284) |
| Adjustments for: | ||
| Interest | (138) | (1,288) |
| (Increase)/ decrease in debtors | (10,627) | (1,059) |
| Increase/ (decrease) in creditors | 4,391 | (4,326) |
| Net cash provided/ (used) by operating activities | £(101,887) | £(25,957) |
| Analysis of cash | ||
| Year ended | Year ended | |
| 31.12.2021 | 31.12.2020 | |
| £ | £ | |
| Cash at bank | 230,070 | 331,819 |
| Total cash | £230,070 | £331,819 |
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THE ASSOCIATION OF ENGLISH CATHEDRALS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021
-
1 GENERAL INFORMATION
-
The Association of English Cathedrals is a company limited by guarantee incorporated in England and Wales registered number 06726262, and a registered charity number 1128254. The members of the company are the 42 English Anglican cathedrals. The registered office is 8 Kingswood Drive, London, SE19 1UR. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.
-
2 ACCOUNTING POLICIES
-
2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Association of English Cathedrals meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
- 2.2 Going Concern
The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.
-
2.3 Incoming resources
-
Incoming resources are recognised when they are invoiced (for example subscriptions) or when received (including donations and bank interest). Where incoming resources have related expenditure, the incoming resources and related expenditure are reported gross in the Statement of Financial Activities.
2.4 Expenditure
Expenditure is recognised as soon as there is a legal or constructive obligation committing the AEC to pay out resources.
- 2.5 Cash at bank and in hand
Cash at bank and in hand includes cash and cash on deposit.
2.6 Debtors
Debtors are measured at the amounts the charity anticipates it will receive from a debt or the amount it has paid in advance for goods or services.
- 2.7 Liabilities
Liabilities are measured at the amounts the charity anticipates it will pay to settle a debt or the amount it has received as an advance payment for goods or services it must provide.
- 2.8 Fund accounting Unrestricted funds are available to use to further any of the purposes of the Association. Restricted funds are given for particular areas of the AEC’s work or for specific projects.
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THE ASSOCIATION OF ENGLISH CATHEDRALS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
3 LEGAL STATUS OF THE ASSOCIATION
The Association is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £10.
4 DEBTORS AND PREPAYMENTS
Year ended Year ended 31.12.2021 31.12.2020 £ £ Other debtors £12,268 £1,641 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Year ended Year ended 31.12.2021 31.12.2020 £ £ Other creditors £10,284 £5,893
5 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
6 ANALYSIS OF RESTRICTED FUNDS
| Year ended 31 December 2021 Balance | Year ended 31 December 2021 Balance | Year ended 31 December 2021 Balance | at Income | Expend | Transfers | Balance at |
|---|---|---|---|---|---|---|
| 1.1.2021 | -iture | between | 31.12.2021 | |||
| funds | ||||||
| £ | £ | £ | £ | £ | ||
| Staff costs | 8,916 | 37,750 | (36,366) | - |
10,300 | |
| Chapter Training Project | 60,304 | 683 | (60,987) | - |
- | |
| CMCPSP | 40,381 | 10,174 | (27,571) | 3,152 |
26,136 | |
| Communications Project | 22,416 | 70,780 | (73,463) | - |
19,733 | |
| Peer Review Project | 122,534 | - | (31,390) | 2,948 |
94,092 | |
| DC,DP | 19,146 | 43,934 | (22,362) | 1,518 |
42,236 | |
| Economic and Social Impacts | 19,602 | - | (19,602) | - |
- | |
| CAFA website maintenance | - | 4,000 | (1,320) | - |
2,680 | |
| Total | £293,299 | £167,321 | £(273,061) | £7,618 | £195,177 | |
| Year ended 31 December 2020 Balance | at Income | Expend | Transfers | Balance at | ||
| 1.1.2020 | -iture | between | 31.12.2020 | |||
| funds | ||||||
| £ | £ | £ | £ | £ | ||
| Staff costs | 8,071 | 37,750 | (36,905) | - |
8,916 | |
| Chapter Training Project | 60,423 | - | (119) | - |
60,304 | |
| CMCPSP | 27,980 | 35,900 | (24,299) | 800 |
40,381 | |
| Communications Project | 13,903 | 55,851 | (47,338) | - |
22,416 | |
| Peer Review Project | 139,991 | - | (19,407) | 1,950 |
122,534 | |
| DC,DP | 74,488 | - | (59,656) | 314 |
19,146 | |
| Economic and Social Impacts | - |
36,680 | (17,078) | - |
19,602 | |
| CAFA website maintenance | - | - | - | - | - | |
| Total | £328,856 | £166,181 | £(204,802) | £3,064 | £293,299 |
15
THE ASSOCIATION OF ENGLISH CATHEDRALS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
Fund balances are represented by cash.
Staff Costs Fund : Amounts contributed by cathedrals to the costs of employing the Executive Director.
Chapter Training Project Fund : Established to account for grants from the Church Commissioners relating to the Chapter Training Project.
Cathedral and Major Church Projects Support Panel Fund (CMCPSP) : Created by donations from the Benefact (formerly Allchurches) Trust and Church Commissioners to fund a Panel of expert volunteers, supported by two part-time Co-ordinators, to give advice to cathedrals on projects to ensure they are well conceived, planned and executed.
Communications Project Fund : Amounts contributed by cathedrals to provide communications support to cathedrals and improve their profile externally.
Peer Review Project Fund : Established to account for grants from the Church Commissioners to fund peer reviews of cathedral governance.
Discover Cathedrals, Discover Pilgrimage (DC,DP) : Established in response to grants from the Church Commissioners and Kirby Laing Foundation to fund expenditure to increase the mission and profile of cathedrals in 2020 and subsequent years (originally: 2020 Year of Cathedrals, Year of Pilgrimage).
Economic and Social Impacts Fund: Set up to account for a grant from the Church Commissioners to fund a new survey of the Economic and Social Impacts of England’s Cathedrals.
CAFA Website Fund: Funding for AEC staff to provide support to the new CAFA website.
7 ANALYSIS OF UNRESTRICTED FUNDS
Year ended 31 December 2021 Balance at Income Expend Transfers Balance at 1.1.2021 -iture between 31.12.2021 funds £ £ £ £ £ General funds 34,268 28,789 (18,562) (7,618) 36,877 Year ended 31 December 2020 Balance at Income Expend Transfers Balance at 1.1.2020 -iture between 31.12.2020 funds £ £ £ £ £ General funds 17,995 27,952 (8,615) (3,064) 34,268
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THE ASSOCIATION OF ENGLISH CATHEDRALS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
8 ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Year ended 31 December 2021 | Unrestricted | Restricted | Total |
|---|---|---|---|
| funds | funds | funds | |
| £ | £ | £ | |
| Current assets | 37,837 | 204,501 | 242,338 |
| Creditors due within one year | (960) | (9,324) | (10,284) |
| Total | £36,877 | £195,177 | £232,054 |
| Year ended 31 December 2020 | Unrestricted | Restricted | Total |
| funds | funds | funds | |
| £ | £ | £ | |
| Current assets | 37,207 | 296,253 | 333,460 |
| Creditors due within one year | (2,939) | (2,954) | (5,893) |
| Total | £34,268 | £293,299 | £327,567 |
9 PAID EMPLOYEES
During the year, the Association employed four part-time members of staff (total 1.6 FTE) and reimbursed their expenses totalling £1,527 (2020: four part-time members of staff (total 1.6 FTE), expenses reimbursed: £1,875). The Association received £7,618 (2020: £3,064) during the year in Coronavirus Job Retention Scheme grants from HM Government.
Government. |
||
|---|---|---|
| Year ended | Year ended | |
| 31.12.2021 | 31.12.2020 | |
| £ | £ | |
| Salaries | 67,608 | 68,393 |
| National insurance | 516 | 1,143 |
| Pension costs | 2,621 | 2,704 |
| Total | £70,745 | £72,240 |
No employee received employee benefits of more than £60,000 in either year.
The Association of English Cathedrals participates in the Pension Builder Scheme section of Church Workers Pension Fund (CWPF) for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the Scheme separately from those of the Employer and the other participating employers.
The CWPF has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. The Association participates in the latter section.
Pension Builder Scheme
The Pension Builder Scheme of the CWPF is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes. Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any
17
THE ASSOCIATION OF ENGLISH CATHEDRALS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
bonuses declared is payable, unreduced, from age 65. There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers. This means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable in the year, 2021: £2,621 (2020: £2,704).
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, the Association of English Cathedrals could become responsible for paying a share of that employer’s pension liabilities.
10 EXECUTIVE MEMBERS REMUNERATION, BENEFITS AND EXPENSES
No member of the Executive Committee was paid any remuneration or received any other benefits from an employment with the Charity.
Members of the Executive Committee had their travel and subsistence expenses reimbursed but no other payments were made to Executive Committee members (2020, £NIL).
| Year ended | Year ended | ||
|---|---|---|---|
| 31.12.2021 | 31.12.2020 | ||
| No. of members who were paid expenses | 6 | 5 | |
| Travel and subsistence expenses | £770 | £692 | |
| 11 | GOVERNANCE COSTS | ||
| Year ended | Year ended | ||
| 31.12.2021 | 31.12.2020 | ||
| Independent examiner’s remuneration | £960 | - |
12 RELATED PARTY TRANSACTIONS There were no related party transactions.
13 COVID-19 PANDEMIC
The members of the Executive Committee acknowledge and recognise the potential impact of Covid-19 on the Association’s operations. One-off projects are funded in advance of expenditure being incurred and income to fund recurring projects is unlikely to be materially affected. Members have considered whether Covid-19 has had any impact on the Association’s ability to continue operating for the foreseeable future; they are confident that the Association has sufficient resources to meet its liabilities as they fall due and that it is a going concern.
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THE ASSOCIATION OF ENGLISH CATHEDRALS
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021
| Year ended 31.12.2021 £ Income Membership subscriptions 18,400 Grants 56,675 Contributions to staff costs 37,750 Contributions to Communications Project 70,780 Coronavirus Job Retention Scheme 7,618 Chapter training courses fees 2,610 Bank interest 138 Other income 2,139 Total income 196,110 Expenditure Executive meetings 2,891 Staff costs and expenses 36,366 Chapter training courses 3,292 Discover Cathedrals Discover Pilgrimage Project 22,362 Cathedral & Major Church Projects Support Panel 27,571 Chapter Training Project 60,987 Communications Project 73,463 Peer Review Project 31,390 Economic and Social Impacts Survey 20,077 CAFA Website 1,320 Grant for CSCC Covid impact survey - Working groups 2,001 Subscriptions 1,013 English cathedrals website 6,570 Conferences 182 Governance 960 Insurance 545 Other 633 Total expenditure 291,623 Operating surplus/ (deficit) for the year (£95,513) |
Year ended 31.12.2020 £ 23,000 72,580 37,750 55,851 3,064 600 1,288 - 194,133 1,221 36,905 500 59,656 24,299 119 47,338 19,407 17,078 - 2,000 631 927 1,866 324 - 498 648 213,417 (£19,284) |
|---|---|
This Income and Expenditure Account is included in the Financial Statements in compliance with the Companies Act 2006.
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