Charity number 1157705
THE FRIENDS OF ELY CATHEDRAL CIO
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
THE FRIENDS OF ELY CATHEDRAL CIO
1.
PARTICULARS OF THE CHARITY
FOR THE YEAR ENDED 31 DECEMBER 2022
TRUSTEES
The Very Reverend M P J Bonney, Dean of Ely (Chairman)
Mr E J Gifford (Chair of Council) Mr R O Setchell (Honorary Treasurer)
Mr P L Back Mrs A L Bishop Mr S M Brooker Mrs J Davie Mrs S Farmer Ms J I Fenton Prof V Lewis Miss D Man (co-opted 24 Jan 2023) Mrs H Merrick Canon J S Reveley
FRIENDS’ OFFICER: Mrs S M Hunting PRINCIPAL BANKERS: Lloyds Bank plc, Minster Place, Ely. INDEPENDENT EXAMINER: Mrs Helena Wilkinson, Price Bailey LLP. REGISTERED ADDRESS: The Chapter Office, The College, Ely, Cambs, CB7 4DL. CHARITY REGISTRATION NO: 1157705
THE FRIENDS OF ELY CATHEDRAL CIO
2.
TRUSTEES’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their report and independently examined financial statements for the year ended 31 December 2022.
Objects of the Charity
The objects of the charity are to assist the Dean and Chapter of Ely in the advancement of the religious, pastoral, musical and educational work of the Cathedral including the preservation of its fabric and the ornaments and furnishings thereof.
The Trustees have considered the Charity Commission’s guidance on public benefit, and they consider that the charity is fulfilling its obligations in this respect by achieving the above objectives.
Governing Document
The Charity is regulated by its Constitution dated 29 April 2014.
Organisation
There can be a maximum of 14 Trustees (there are 13 at present) comprising no more than 7 trustees elected at the annual general meeting of the members, 1 ex officio trustee (the Dean of Ely) and 6 trustees nominated by the Chapter of Ely Cathedral. Trustees shall hold office for three years but shall be eligible for re-election or nomination for up to three consecutive occasions.
The day to day administration is handled by the Friends’ Officer, Mrs S M Hunting.
Gifts to Ely Cathedral up to a value of £40,000 are approved by the Trustees (Council) and those in excess of £40,000 must be approved by the members at the Annual General Meeting.
Trustee induction and training
New Trustees are selected from the local community, only if they have relevant experience, skills and enthusiasm to enable them to make a contribution to the administration of the charity. They are interviewed and, if they are willing to be appointed, they are formally proposed and seconded for appointment either at an Annual General Meeting or, if elected by the Dean and Chapter, by a meeting of that body. No formal training is given to new Trustees but they are briefed thoroughly as to the charity’s activities.
Charity Governance Code
The seven principles that make up this code: organisational purpose, leadership, integrity, decision making risk and control, board effectiveness, diversity, openness and accountability, have all been considered by the Trustees who are satisfied that the charity meets these principles.
Development, Activities and Achievements
The Trustees approved gifts to Ely Cathedral during the period totalling £30,456 (2021 - £30,563). In addition £300,000 was pledged and approved by the members at the AGM on 14 October 2022 to support new lighting installation throughout the cathedral (2021 - £1,000,000). Gifts previously agreed and not taken up in full and now written back totalled £6,017 (2021 - £6,127), making a net charge in the financial statements of £324,439 (2021 - £1,024,436). A further £25,000 (2021 - £20,000) has been agreed since the year end and remains unpaid at the date of this report.
THE FRIENDS OF ELY CATHEDRAL CIO
3.
TRUSTEES’ REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
Review of the Financial Position and Transactions
The financial position of the Charity is strong and it is well able to meet the agreed gifts from funds which are readily available. In 2022 the total income of the Friends was £212,687 (2021 - £398,613), expenditure excluding gifts was £27,874 (2021 - £24,569). The value of the investments decreased by £112,044. As stated in the previous paragraph gifts totalled £324,439 leaving a deficit for the year of £251,670 (2021 - deficit £438,319)
Reserves Policy
Normal recurring expenditure can be met by the expected income of the charity. Reserves are required to enable the charity to assist Ely Cathedral with projects as and when required and the Trustees have agreed that reserves should not be allowed to fall below £50,000.
Fundraising
The Charity understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate but does not currently fundraise from the public or use any internal fundraisers or external fundraising agencies for either telephone or face to face campaigns and received no fundraising complaints during the year.
Risk management
The Trustees have examined the charity’s operations and considered the risks faced. In the opinion of the Trustees the charity has established the resources and review systems which, under normal circumstances, should allow any risks to be mitigated to an acceptable level in its day to day operations.
Investment Policy
Apart from the Designated Fund (see below), the trustees do not envisage holding funds for the long term. As referred to above, it is intended that reserves will not fall below £50,000 and this is covered by cash deposits and an investment in M&G Charifund income units which cost £15,245 several years ago and at 31 December 2021 had a value of £37,488. With regard to the Designated Fund, the fund is invested in the CBF Church of England Investment Fund with dividends received held in a deposit account pending expenditure or re-investment. The commitment to the cathedral to support the new lighting installation of £1,300,000 has necessitated the drawing down of this investment of which £1,270,000 had been withdrawn in 2021 and 2022. The investment has a balanced investment objective with low or medium risk and at 31 December 2022 had a value of £276,677.
On Behalf of the Trustees
Ed Gifford (Chair of Council)
24 April 2023
4.
Independent Examiner's Report to the Trustees of The Friends of Ely Cathedral CIO
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2022 which are set out on pages 5 to 13.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records ; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed:
Helena Wilkinson BSc FCA DChA Price Bailey LLP Chartered Accountants Tennyson House Cambridge Business Park Cambridge CB4 0WZ
11 May 2023
THE FRIENDS OF ELY CATHEDRAL CIO
5.
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Unrestricted | Unrestricted | ||||
| Funds | Funds | ||||
| Note | £ | £ | |||
| Income: | |||||
| Subscriptions, donations | |||||
| and legacies | 2 | 162,702 | 346,251 | ||
| Fund raising | 3 | 12,725 | 9,481 | ||
| Investments | 4 | 37,260 | 42,881 | ||
| ────── | ───── | ||||
| Total income | 212,687 | 398,613 | |||
| Expenditure: | |||||
| Raising funds | 3 | 5,211 | 2,685 | ||
| Charitable activities | 5 | 347,102 | 1,046,320 | ||
| ────── | ────── | ||||
| Total expenditure | 352,313 | 1,049,005 | |||
| (Decrease) / Increase in value | |||||
| of investments | 6 | (112,044) | 212,073 | ||
| ────── | ────── | ||||
| Net (expenditure) / income for | the | ||||
| year being net movement in funds | (251,670) | (438,319) | - | ||
| Reconciliation of funds: | |||||
| Total funds brought forward | 935,279 | 1,373,598 | |||
| ────── | ────── | ||||
| Total funds carried forward | 683,609 | 935,279 | |||
| ────── | ────── |
All income and expenditure derive from continuing activities.
The statement of financial activities includes all gains and losses recognised during the year.
The notes on pages 7 to 13 form part of these accounts
THE FRIENDS OF ELY CATHEDRAL CIO
6.
BALANCE SHEET AT 31 DECEMBER 2022
| Note | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| £ | £ | £ | £ | |||
| Fixed Asset | ||||||
| Investments | 6 | 314,165 | 1,596,209 | |||
| Current assets | ||||||
| Debtors | 7 | 1,285 | 1,364 | |||
| Stock of merchandise for resale | 1,138 | 2,051 | ||||
| Bank account & cash | 7,791 | 71,269 | ||||
| Deposit accounts | 1,207,738 | 231,095 | ||||
| 1,217,952 | 305,779 | |||||
| Current liabilities | ||||||
| Creditors (amounts falling due | ||||||
| within one year) | 8 | 848,508 | 966,709 | |||
| Net current assets / (liabilities) | 369,444 | (660,930) | ||||
| Total net assets | 683,609 | 935,279 | ||||
| Funds | 10 | |||||
| Unrestricted funds | 683,609 | 935,279 |
The financial statements on pages 5 to 13 were approved by the Council on 24 April 2023 and signed on its behalf by:
Ed Gifford (Chair of Council)
Richard Setchell (Honorary Treasurer)
The notes on pages 7 to 13 form part of these accounts
THE FRIENDS OF ELY CATHEDRAL CIO
7.
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1. ACCOUNTING POLICIES
a. Basis of Accounting
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Charities Act 2011, and UK Generally Accepted Practice.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are under the historical cost convention, modified to include investments at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
b. Going concern
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or sub sectors. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with the gains and losses on revaluation of these investments each year. This is covered in more detail in the performance and risk sections of the Trustees’ annual report for more information.
The trustees have considered the effects of the Covid-19 pandemic and have concluded that it will not affect the going concern status of the charity.
c. Income
All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For legacies, entitlement is taken on a case by case basis as the earlier of the date on which the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. If the legacy is in the form of an asset other than cash or an asset listed on a recognised stock exchange, recognition is subject to the value of the asset being able to be reliably measured and title to the asset has passed to the charity. Where legacies have been notified or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
d. Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: (continued on next page)
THE FRIENDS OF ELY CATHEDRAL CIO
8
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1. ACCOUNTING POLICIES (continued)
d. Expenditure (continued)
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Costs of raising funds includes support costs for the management of the investment portfolio, fund- raising and event organisation;
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Expenditure on charitable activities includes grants made, governance costs and an apportionment of support costs.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance, the grant is only accrued when any unfulfilled conditions are outside the control of the charity.
e. Investment Fixed Assets
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their bid value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Trust does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Investment income, gains and losses are allocated to the appropriate fund.
f. Tangible Fixed Assets
Equipment, furniture and fittings owned by the Charity are written off when acquired. It is considered that the realisable value of these items is not significant.
g. Funds
Restricted Funds are funds which have been given for particular purposes or projects. Unrestricted funds are funds given for no particular purpose or projects, to be spent as Trustees decide.
h. Stocks
Stock consists of purchased goods for resale. Stock is valued at the lower of cost and net realisable value.
i. Cash at bank and in hand
Cash at bank includes cash held in current and deposit accounts.
j. Debtors
Other debtors are recognised at the settlement amount due
k. Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in a payment to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.
l. Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at cost and subsequently measured at their settlement value. At the balance sheet date, fixed asset investments are recorded at market value and all other assets and liabilities are recorded at cost (which is their fair value). The investment note 6 details the original cost of the investments and their fair value (market value) recorded in the accounts.
m. Estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the trustees’ best knowledge of the amount, events or actions, actual results ultimately differ from these estimates. The trustees do not consider there to be any material estimates and judgements.
9.
THE FRIENDS OF ELY CATHEDRAL CIO
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2. Income from subscriptions, donations and legacies
| 2022 | 2021 | |
|---|---|---|
Subscriptions including gift aid claims |
29,827 | 29,873 |
| Donations | 1,269 | 2,463 |
| Legacies | 131,606 | 313,915 |
| 162,702 | 346,251 |
All relate to unrestricted funds in both years
3. Income from Fund Raising Activities
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| Income | Expenses | Net | Income | Expenses | Net | |
| Friends’ social events | 3,819 | 2,007 | 1,812 | 1,102 | 34 | 1,068 |
| Christmas cards | 8,012 | 2,858 | 5,154 | 7,457 | 2,310 | 5,147 |
| Other Merchandise | 894 | 346 | 548 | 922 | 341 | 581 |
| 12,725 | 5,211 | 7,514 | 9,481 | 2,685 | 6,796 |
All relate to unrestricted funds in both years
4. Income from Investments
| Income from Investments | ||
|---|---|---|
| 2022 | 2021 | |
| Investment fund - dividends | 24,290 | 41,822 |
| Interest – deposits | 12,970 | 1,059 |
| 37,260 | 42,881 |
All relate to unrestricted funds in both years
THE FRIENDS OF ELY CATHEDRAL CIO
10.
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
| 5. | Charitable Activities | ||
|---|---|---|---|
| Gifts to Ely Cathedral | 2022 | 2021 | |
| Balance of gifts previously agreed and not taken up in full : | |||
| Unrestricted Funds: | |||
| Disability access ramp outside Lady Chapel | - | (4,575) | |
| Sponsorship “The Earth” display | - | (1,552) | |
| Streaming equipment | (6,017) | ||
| New gifts: | |||
| Unrestricted Funds: | |||
| Disability access ramp outside Lady Chapel | 396 | - | |
| Streaming equipment | - | 25,000 | |
| Choristers prize | 60 | 50 | |
| Communion set | - | 513 | |
| Chorister funding | - | 5,000 | |
| Re-ordering St Catherine’s Chapel | 25,000 | - | |
| Music commission for 1350 year celebrations | 5,000 | - | |
| 24,439 | 24,436 | ||
| Designated Fund | |||
| New lighting installation | 300,000 | 1,000,000 | |
| Total Gifts to Ely Cathedral | 324,439 | 1,024,436 | |
| Governance costs | |||
| Printing, stationery, postage & telephone | 1,411 | 1,392 | |
| Salaries | 17,923 | 17,402 | |
| National insurance | 1,291 | 1,183 | |
| Pension contributions | 1,165 | 1,131 | |
| Sundry expenses | 25 | 87 | |
| Accountancy fees | 561 | 510 | |
| Furniture & equipment | 287 | 179 | |
| 22,663 | 21,884 | ||
| Total | 347,102 | 1,046,320 |
The average number of employees (part-time) during the period was 1 (2021 – 1)
No employee received emoluments of more than £60,000 during the year (2021 – None)
The total employee benefits of the key management personnel were £19,716 (2021 - £19,716)
The key management personnel were: Mrs S M Hunting (Friends Officer), Mr E J Gifford (Chair of Council) and Mr R O Setchell (Honorary Treasurer)
All relate to unrestricted funds in both years
THE FRIENDS OF ELY CATHEDRAL CIO
11.
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
6. Investments
| 6. | Investments | ||||
|---|---|---|---|---|---|
| Cost | Open | market value | |||
| 2022 | 2021 | 2022 | 2021 | ||
| At beginning of year | 1,051,084 | 862,151 | 1,596,209 | 1,230,673 | |
| Further investment | - | 253,463 | - | 253,463 | |
| Investments sold | (808,486) | (64,530) | (1,170,000) | (100,000) | |
| (Decrease) / Increase in value in year | - | - | (112,044) | 212,073 | |
| At 31 December 2022 | 242,598 | 1,051,084 | 314,165 | 1,596,209 | |
| Comprising: | |||||
| 2,551 M&G Charifund income units | 38,614 | 38,614 | 37,488 | 39,699 | |
| 13,391.01 CBF Church of England | |||||
| investment fund income shares | 203,983 | 1,012,470 | 276,677 | 1,556,510 | |
| 242,597 | 1,051,084 | 314,165 | 1,596,209 | ||
| 2022 | 2021 | ||||
| 7. | Debtors | ||||
| Income tax recoverable | 358 | 447 | |||
| Other debtors | 927 | 917 | |||
| 1,285 | 1,364 | ||||
| 8. | Creditors | ||||
| Ely Cathedral – re-imbursement of expenses | 10,201 | 12,274 | |||
| Ely Cathedral – gifts | 838,307 | 953,952 | |||
| Other creditors | - | 483 | |||
| 848,508 | 966,709 | ||||
| 9. | Commitments approved since December | 2022 | |||
| Re-ordering of St Catherine’s Chapel | - | 20,000 | |||
| Chorister funding | 25,000 | - | |||
| 25,000 | 20,000 |
THE FRIENDS OF ELY CATHEDRAL CIO
12.
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
10. Fund Reconciliation
| At 31 | At 31 | ||||
|---|---|---|---|---|---|
| Current Year | December | Investment | December | ||
| 2021 | Income | Expenditure | Gains/(Losses) | 2022 | |
| Unrestricted Funds | |||||
| General fund | 267,972 | 179,984 | (52,313) | (2,211) |
393,432 |
| Designated fund | 667,307 | 32,703 | (300,000) | (109,833) | 290,177 |
| Total Funds | 935,279 | 212,687 | (352,313) | (112,044) | 683,609 |
| At 31 | |||||
| At 31 December | Investment | December | |||
| Prior Year | 2020 | Income | Expenditure | Gains |
2021 |
| Unrestricted Funds | |||||
| General fund | 169,529 | 142,764 | (49,005) | 4,684 | 267,972 |
| Designated fund | 1,204,069 | 255,849 | (1,000,000) | 207,389 | 667,307 |
| Total Funds | 1,373,598 | 398,613 | (1,049,005) | 212,073 | 935,279 |
The designated fund arose from substantial legacies which have been set aside to provide funds for major projects.
11. Analysis of Fund Assets and Liabilities
| Unrestricted | Designated | Total | |
|---|---|---|---|
| 2022 | Funds | Fund | Funds |
| Investments | 37,488 | 276,677 | 314,165 |
| Bank current account & cash | 7,791 | - | 7,791 |
| Deposit accounts | 379,856 | 827,882 | 1,207,738 |
| Other current assets | 2,423 | - | 2,423 |
| Current liabilities | (34,126) | (814,382) | (848,508) |
| 393,432 | 290,177 | 683,609 | |
| 2021 | |||
| Investments | 39,699 | 1,556,510 | 1,596,209 |
| Bank current account & cash | 90,704 | (19,435) | 71,269 |
| Deposit accounts | 182,752 | 48,343 | 231,095 |
| Other current assets | 3,415 | - | 3,415 |
| Current liabilities | (48,598) | (918,111) | (966,709) |
| 267,972 | 667,307 | 935,279 |
THE FRIENDS OF ELY CATHEDRAL CIO
13.
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2022
12. Trustees’ Remuneration
During the period, no Trustee received nor waived any remuneration (2021 – nil). Expenses reimbursed to the Trustees in the year were Nil (2021 – Nil)
13. Related Parties
During the year the charity committed to gifts to Ely Cathedral totalling £324,439 (2021 - £1,024,436). The Very Reverend M J P Bonney is Dean of Ely Cathedral and Canon J S Reveley is a Residentiary Canon. There were no further related party transactions.
.