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2022-12-31-accounts

THE ASSOCIATION OF ENGLISH CATHEDRALS

REPORT OF THE EXECUTIVE COMMITTEE AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022

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 2022. 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 2022 or have been appointed since that date were as follows:

The Very Rev’d Adrian Dorber, Dean of Lichfield (Chair, resigned May 2022) Mr David Bilton, Chapter member, Newcastle Cathedral Mr David Coulthard, Communar, Chichester Cathedral (resigned July 2022) 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 Mrs Emily MacKenzie, Registrar, St Paul’s Cathedral (appointed November 2022) The Very Rev’d Jo Kelly-Moore, Dean of St Albans (Chair, appointed May 2022) The Very Rev’d David Monteith, Dean of Canterbury Mrs Anna Pitt, COO, Birmingham Cathedral (appointed May 2022) The Very Rev’d Nick Papadopulos, Dean of Salisbury (appointed May 2022) The Rev’d Canon Aidan Platten, Canon, Norwich Cathedral The Rev’d Canon Celia Thomson, Canon, Gloucester Cathedral (resigned February 2022) The Very Rev’d Andrew Tremlett, Dean of Durham (resigned May 2022) The Rev’d Canon Matthew Vernon, Sub-Dean, St Edmundsbury Cathedral (appointed February 2022)

Mr Jonathan Ward, Chapter member, Durham Cathedral (appointed May 2022)

Senior staff

Mrs Sarah King, Executive Director

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THE ASSOCIATION OF ENGLISH CATHEDRALS

Principal advisers Bankers

Independent Examiner

The Co-operative Bank Mr J F Fletcher FCA PO Box 250, Delf House Fletcher & Partners Southway Crown Chambers Skelmersdale WN8 6WT 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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THE ASSOCIATION OF ENGLISH CATHEDRALS

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:

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

There were a number of changes to the membership of the Executive Committee in 2022. The Chair, Adrian Dorber, stood down at the AGM in May 2022 prior to his retirement as Dean of Lichfield in March 2023. Jo Kelly-Moore, Dean of St Albans, was elected at the AGM and also appointed as Chair. Andrew Tremlett also stood down at the AGM, prior to

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THE ASSOCIATION OF ENGLISH CATHEDRALS

his move from Durham to St Paul’s. Also elected at the AGM were Nick Papadopulos, Dean of Salisbury, and Jonathan Ward, a lay member of Chapter at Durham Cathedral.

In February, the Executive Committee co-opted Simon Griffiths and Matthew Vernon to fill the two vacancies on the Committee. Celia Thomson retired from Gloucester Cathedral in February and resigned from the Executive Committee at the same time.

Both CAFA ex officio appointees, David Coulthard and Emma Davies, resigned during the year on leaving their cathedral roles. Anna Pitt was appointed in May to fill the vacancy created by Emma’s resignation and Emily MacKenzie was appointed in November when she became Chair of CAFA in succession to David who resigned in July.

Achievements and performance

The Executive Committee met on four occasions during the year to discuss matters of interest to the members, agree actions and review progress. Three meetings were held by Zoom. An in-person meeting 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 in May, during the National Cathedrals Conference in Newcastle.

At its all-day meeting in November, the Committee reviewed the role of the Association and the Statement of Purpose devised the previous year. It continues to have 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. The Committee agreed strategic priorities for the future and specific actions in respect of its activities and projects for 2023.

The National Cathedrals Conference hosted by Newcastle Cathedral from 16 to 19 May was a high point of the year. 345 people attended (delegates, speakers, sponsors and exhibitors). Delegates came from all member cathedrals, other cathedrals in the UK and Ireland, the National Church Institutions (NCIs), and related organisations. The theme of Different Country Different Church was explored through major sessions on three justice strands: climate, racial and social. The conference opened with a speech from Sir John Major KG, and other speakers made notable contributions in their areas of expertise. Delegates greatly appreciated the opportunity afforded by the conference to meet for the first time since the pandemic and have space to reflect together on the issues facing cathedrals as they recover from the pandemic and cope with the cost of living crisis. The Committee wishes to express its gratitude to the host cathedral, Newcastle, and 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 supported the conference. The finances for the conference were managed by Manchester Cathedral Hire Ltd on behalf of the AEC.

The AEC’s Chapter Training activities, which had been disrupted by the Covid-19 pandemic in 2020 and 2021, were able to resume and return to pre-pandemic patterns. Induction training courses for new Chapter members were held on three occasions (February, June and October) in-person. These 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 course content continues to evolve to support the move of cathedrals to registered charity status.

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 Nicola Sullivan, Dean of Southwell, to ensure that cathedrals are alert to and implement good practice in safeguarding; it recognises the importance of providing the best possible care to

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children and adults at risk in cathedral contexts. The AEC worked with the National Safeguarding Team when requested to facilitate reviews of various documentation and ensure cathedrals were aware of training sessions and support available.

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 cathedrals recover from the pandemic. It saw continued growth in numbers engaging with the Association’s social media accounts and website. Of particular note is the #cathedraltreasures campaign in late 2022 and early 2023 which was successful in raising awareness of our cathedrals and the treasures within. It hugely benefitted those cathedrals that joined in fully and clearly demonstrated that a co-ordinated campaign approach can achieve much greater reach and benefits than most cathedrals could achieve on their own. A Project Board, chaired 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 NCIs.

After severe disruption during the Covid-19 pandemic, peer reviews were able to resume, uninterrupted by lockdowns and restrictions. 11 reviews were completed in the year, bringing the total number to 25. The Peer Review 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 and once in person. In July and August, the Project Board conducted a survey of those cathedrals which had 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 were reviewed by both the Project Board and Committee. They show that cathedrals are positive about their peer reviews and a possible second round, although they propose changes to the review content to reflect the different regulatory environment and post-pandemic context of cathedrals. Les West, as Project Manager, and Moira Dean, as Project Coordinator, organise the reviews and recruitment and training of new reviewers.

The Cathedral and Major Church Projects Support Panel’s Project Board continues to be chaired by Peter Howell-Jones. The AEC manages the administration of the project, which provides expert volunteer support to both cathedrals and major churches, 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 is still lower than pre-Covid times, although numbers of enquiries increased slowly during the year as cathedrals and major churches recovered from the impact of Covid. Requests for support are now generally more focussed on financial and organisational sustainability (for example, increasing income from cafes and shops and existing assets) than on major and expensive projects. Assistance with strategic planning is also in demand. Reports on the project’s progress are made regularly to the Committee and also to the project funders, the Benefact (formerly Allchurches) Trust and the Church Commissioners.

The ‘Discover Cathedrals, Discover Pilgrimage’ Project has continued during the year. Cathedrals were again encouraged to host ‘Cathedrals at Night’ evenings on the second Saturday in May, when their European sister cathedrals open their doors. There is evidence that such events attract more local people and younger people who are not traditional cathedral visitors. In order to assist cathedrals with data collection about visitors to inform decisions about programming and marketing designed to attract different audiences, the AEC facilitated the establishment of a pilot with the Audience Agency in which a dozen cathedrals are participating. Visitors are asked to complete a survey which has been tailored to the needs of cathedrals and can be customised by cathedral. The pilot year started in September 2022. Pilgrim Passports continue to sell and to encourage visits to cathedrals. The Cathedral Cycle Route, launched in 2021, is bringing more cyclists to cathedrals. Links have developed with VisitEngland, and the AEC is encouraging cathedrals to use the resources available as they rebuild their visitor offer and numbers.

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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.

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.

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. The AEC, together with the Cathedral and Church Buildings Division in the NCIs and CLAS, has worked with the Home Office team developing Martyn’s Law to ensure that the nature of cathedrals and churches is understood and the legislation will cater for them.

The Executive Director provided support to cathedrals in a number of areas, facilitating Zoom and in-person meetings for members of various cathedral networks, answering questions and encouraging the sharing of good practice. Moira Dean provides support for the 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 exceeded expenditure by £18,730 (2021, income was £95,513 less than expenditure). Unrestricted income exceeded expenditure by £13,168 (2021: unrestricted income exceeded expenditure by £2,609), and restricted income exceeded expenditure by £5,562 (2021: income was £98,122 less than expenditure).

Income of £242,462 was higher (2021: £196,110). Subscriptions returned to £500 per member and associate member following a one-off reduction to £400 in 2021. Grant income was £93,236 (2021: £56,675). With the rise in interest rates during the year, interest income was £2,461, significantly greater than £138 in 2021.

Expenditure was lower than the previous year at £223,732 (2021: £291,623). This was due to a number of factors, including decreased activity on the Discover Cathedrals Discover Pilgrimage Project and lower expenses for peer reviews, and charging the National Cathedrals Conference time spent on conference communications rather than charging the Communications Project. In 2021, £60,987, representing the balance left on completion of the Chapter Training Project, was returned to the Church Commissioners, the Project’s funders.

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, 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 2022, the target

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reserves level was £57,500. 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 £50,045 (2021: £36,877).

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. In addition to the day to day support provided to cathedrals through the work of the Executive Director and Communications Project team, 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 and cost of living crisis, and working with cathedrals through the Discover Cathedrals Discover Pilgrimage Project to attract more visitors to cathedrals. In particular, this will involve assessing the results of a pilot to assess the value of using data about visitors collected through surveys using Audience Finder to inform programming and marketing decisions, with a view to growing audiences reached by cathedrals. The Committee also plans a feasibility study to establish if it would be possible for the AEC to co-ordinate groups of cathedrals to commission exhibitions and events which attract visitors and enhance the mission of cathedrals.

With the current round of peer reviews due to be completed by the end of 2023, the Executive is working with the Peer Review Project Board on a possible second round of peer reviews. Cathedrals have been consulted and their feedback will inform proposals. There are discussions with the Church Commissioners, as the project’s likely funders, about plans for a possible second round of reviews.

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:

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:

Jo Kelly-Moore Chair

4 May 2023

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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 2022.

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:

  1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. 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

  4. 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 2022

Note Unrestricted Restricted Total
funds funds 31.12.22
£ £ £
Income from donations
Membership subscriptions 23,000 - 23,000
Grants - 93,236 93,236
Coronavirus Job Retention Scheme - - -
23,000 93,236 116,236
Income from charitable activities
Contributions to staff costs 6 - 38,885 38,885
Contributions to Communications Project 6 - 70,780 70,780
Chapter training course fees 3,170 - 3,170
Other income - 10,930 10,930
3,170 120,595 123,765
Income from investments
Bank deposit interest 2,461 - 2,461
Total income 28,631 213,831 242,462
Expenditure on:
Charitable activities supporting the English Anglican cathedrals
Staff costs 6 - 37,723 37,723
Executive meetings 2,748 - 2,748
Working groups - - -
Chapter Training 4,076 - 4,076
Cathedral & Major Church Projects Support Panel 6 - 21,781 21,781
Communications Project 6 - 63,933 63,933
Peer Review Project 6 - 27,626 27,626
Discover Cathedrals etc. Project 6 - 16,309 16,309
CAFA Website 6 - 1,391 1,391
National Cathedrals Conference 6 - 39,506 39,506
Economic and Social Impacts Survey - - -
Conferences 1,168 - 1,168
English cathedrals website 4,266 - 4,266
Subscriptions 989 - 989
13,247 208,269 221,516
Other
Governance 11 1,008 - 1,008
Insurance 593 - 593
Other 615 - 615
2,216 - 2,216
Total expenditure 15,463 208,269 223,732
Net income/ (expenditure) 13,168 5,562 18,730
Transfers between funds - - -
Net movements in funds 6,7 13,168 5,562 18,730
Reconciliation of funds:
Total funds brought forward 6,7 36,877 195,177 232,054
Total funds carried forward 6,7 £50,045 £200,739 £250,784

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 2021

Comparative information
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
Chapter Training 6 3,292 60,987 64,279
Cathedral & Major Church Projects Support Panel 6 - 27,571 27,571
Communications Project 6 - 73,463 73,463
Peer Review Project 6 - 31,390 31,390
Discover Cathedrals etc. Project 6 - 22,362 22,362
CAFA Website 6 - 1,320 1,320
Economic and Social Impacts Survey 6 475 19,602 20,077
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

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BALANCE SHEET AS AT 31 DECEMBER 2022

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
31.12.2022
£
15,209
246,045
261,254
(10,470)
£250,784
200,739
50,045
£250,784		 Year ended
31.12.2021
£
12,268
230,070
242,338
(10,284)
£232,054
195,177
36,877
£232,054

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 4 May 2023 and signed on their behalf by:

Jo Kelly-Moore Chair

The notes on pages 14 to 18 form part of these accounts

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Year ended Year ended
31.12.2022 31.12.2021
£ £
Cash flows from operating activities:
Cash receipts 237,116 185,415
Cash payments (223,602) (287,302)
Net cash(used)/ provided by operating activities 13,514 (101,887)
Cash flows from investing activities:
Interest 2,461 138
Net cash provided by investing activities 2,461 138
Change in cash in the reporting period 15,975 (101,749)
Cash at beginning of the reporting period 230,070 331,819
Cash at end of the reporting period £246,045 £230,070
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) 18,730 (95,513)
Adjustments for:
Interest (2,461) (138)
(Increase)/ decrease in debtors (2,942) (10,627)
Increase/ (decrease) in creditors 187 4,391
Net cash provided/ (used) by operating activities £13,514 £(101,887)
Analysis of cash
Year ended Year ended
31.12.2022 31.12.2021
£ £
Cash at bank 246,045 230,070
Total cash £246,045 £230,070

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NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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.

The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

2.4 Expenditure

Expenditure is recognised as soon as there is a legal or constructive obligation committing the AEC to pay out resources.

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.

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.

14

THE ASSOCIATION OF ENGLISH CATHEDRALS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022 (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
31.12.2022 31.12.2021
£ £
Other debtors £15,209 £12,268

5 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Year ended Year ended
31.12.2022 31.12.2021
£ £
Other creditors 9,462 9,324
Accruals 1,008 960
Total £10,470 £10,284

6 ANALYSIS OF RESTRICTED FUNDS

Year ended 31 December 2022 Balance Year ended 31 December 2022 Balance Year ended 31 December 2022 Balance at Income Expend Transfers Balance at
1.1.2022 -iture between 31.12.2022
funds
£ £ £ £ £
Staff costs 10,300 38,885 (37,723)
-		 11,462
Chapter Training Project - - - - -
CMCPSP 26,136 49,236 (21,781)
-		 53,591
Communications Project 19,733 70,780 (63,933)
-		 26,580
Peer Review Project 94,092 - (27,626)
-		 66,466
DC,DP 42,236 5,930 (16,309)
-		 31,857
Economic and Social Impacts
-		 - - - -
CAFA website maintenance 2,680 4,000 (1,391)
-		 5,289
National Cathedrals Conference
-		 45,000 (39,506)
-		 5,494
Total £195,177 £213,831 £(208,269)
-		 £200,739
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
National Cathedrals Conference
-		 - - - -
Total £293,299 £167,321 £(273,061) £7,618 £195,177

15

THE ASSOCIATION OF ENGLISH CATHEDRALS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022 (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; closed in 2021.

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 and major churches 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) Fund : 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).

CAFA Website Fund: Funding for AEC staff to provide support to the new CAFA website.

National Cathedrals Conference Fund : Established to account for grants and payments received in respect of National Cathedrals Conferences. One was held in May 2022 and the next Conference is planned for 2026.

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; closed in 2021.

7 ANALYSIS OF UNRESTRICTED FUNDS

Year ended 31 December 2022 Balance at Income Expend Transfers Balance at 1.1.2022 -iture between 31.12.2022 funds £ £ £ £ £ General funds 36,877 28,631 (15,463) (0) 50,045 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

16

THE ASSOCIATION OF ENGLISH CATHEDRALS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

8 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Year ended 31 December 2022 Unrestricted Restricted Total
funds funds funds
£ £ £
Current assets 51,443 209,811 261,254
Creditors due within one year (1,398) (9,072) (10,470)
Total £50,045 £200,739 £250,784
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

9 PAID EMPLOYEES

During the year, the Association employed four part-time members of staff (total 1.6 FTE) and reimbursed their expenses totalling £1,657 (2021: four part-time members of staff (total 1.6 FTE), expenses reimbursed: £1,527).

Year ended Year ended
31.12.2022 31.12.2021
£ £
Salaries 71,170 67,608
National insurance 576 516
Pension costs 2,700 2,621
Total £74,446 £70,745

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 Association and the other participating employers.

CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two subsections;

  3. a. a deferred annuity section known as Pension Builder Classic, and

  4. b. a cash balance section known as Pension Builder 2014.

The Association participates in the latter section.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which 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 bonuses declared is payable, unreduced, from age 65.

17

THE ASSOCIATION OF ENGLISH CATHEDRALS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and 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 the contributions payable 2022: £2,700 (2021: £2,621).

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.

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 (2021, £NIL).

Year ended Year ended
31.12.2022 31.12.2021
No. of members who were paid expenses 8 6
Travel and subsistence expenses £948 £770
11 GOVERNANCE COSTS
Year ended Year ended
31.12.2022 31.12.2021
Independent examiner’s remuneration £1,008 £960

12 RELATED PARTY TRANSACTIONS

18

THE ASSOCIATION OF ENGLISH CATHEDRALS

INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Year ended
31.12.2022
£
Income
Membership subscriptions
23,000
Grants
93,236
Contributions to staff costs
38,885
Contributions to Communications Project
70,780
Coronavirus Job Retention Scheme
0
Chapter training courses fees
3,170
Bank interest
2,461
Other income
10,930
Total income
242,462
Expenditure
Executive meetings
2,748
Staff costs and expenses
37,723
Chapter training courses
4,076
Discover Cathedrals Discover Pilgrimage Project
16,309
Cathedral & Major Church Projects Support Panel
21,781
Chapter Training Project
0
Communications Project
63,933
Peer Review Project
27,626
Economic and Social Impacts Survey
0
National Cathedrals Conference
39,506
CAFA Website
1,391
Working groups
0
Subscriptions
989
English cathedrals website
4,266
Conferences
1,168
Governance
1,008
Insurance
593
Other
615
Total expenditure
223,732
Operating surplus/ (deficit) for the year
£18,730		 Year ended
31.12.2021
£
18,400
56,675
37,750
70,780
7,618
2,610
138
2,139
196,110
2,891
36,366
3,292
22,362
27,571
60,987
73,463
31,390
20,077
0
1,320
2,001
1,013
6,570
182
960
545
633
291,623
(£95,513)

This Income and Expenditure Account is included in the Financial Statements in compliance with the Companies Act 2006.

19