2023-12-31-accounts

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SOUTHWARK CATHEDRAL

Annual Report and Consolidated Financial Statements for the year ended 31[st] December 2023

The Cathedral and Collegiate Church of St Saviour and St Mary Overie, Southwark

Registered charity number: 1200866

Annual Report

Objectives and Activities	3
Achievements and Performance	4
Financial Review	10
Trustee Plans for 2024	10
Structure, Governance and Management	12
Reference and Administrative Details	20
Statement of the Responsibilities of the Chapter	23
Independent Auditor’s Report	24
Consolidated Statement of Financial Activities	28
Consolidated Balance Sheet	29
Cathedral Balance Sheet	30
Consolidated Statement of Cash Flows	31
Notes to the Consolidated Financial Statements	32

ANNUAL REPORT

OBJECTIVES AND ACTIVITIES

Charitable objects

The Cathedral and Collegiate Church of Saint Saviour and Saint Mary Overie, Southwark (Southwark Cathedral) is a charity registered and regulated by the Charity Commission for England and Wales under the Charities Act 2011. Its charitable purposes are as follows:

(1) The objects of the Chapter are:

(a) to advance the Christian religion in accordance with the faith and practice of the Church of England, in particular by furthering the mission of the Church of England;

(b) to care for and conserve the fabric and structure of the Cathedral Church building; and

(c) to advance any other charitable purposes which are ancillary to the furtherance of the purpose referred to in sub-paragraph (a) or (b).

(2) In paragraph (1):

“the mission of the Church of England” means the whole mission of the Church of England, pastoral, evangelistic, social and ecumenical;

“Cathedral Church building” means the buildings within the ecclesiastical exemption for the Cathedral; and

“charitable purposes” means purposes within section 2(1) of the Charities Act 2011.

(3) In furthering the objects set out in paragraph (1), the Chapter must act for the public benefit within the meaning of section 4(3) of the Charities Act 2011.

Mission Statement

Our mission statement, adopted by the Chapter, states:

Southwark Cathedral - an inclusive Christian community, growing in orthodox faith and radical love.

The marks of our community are:

confidence in God and the Gospel
passion for those on the edge of society
engagement in vibrant theology and teaching
prayerful service of our Bishop and Diocese
love for London and the world.

Our rule of life is centred on a commitment to worship, study and service to the Living God we know in Jesus Christ.

The main activities that we undertake to deliver our charitable purposes are set out in this report.

ACHIEVEMENTS AND PERFORMANCE

Object 1(a) - to advance the Christian religion in accordance with the faith and practice of the Church of England, in particular by furthering the mission of the Church of England;

Worship and Liturgy

The Liturgical life of the Cathedral is key to the delivery of its charitable objects of advancing the Christian religion in accordance with the faith and practice of the Church of England. At the heart of our work here are the Eucharist and the round of daily offices. As a community, although our worship is rooted in an orthodox Anglican tradition, we are committed to modern, inclusive, imaginative, and accessible worship. In our role as the Mother Church of the Diocese, the worship offered on Diocesan occasions seeks to be non-partisan, authentic and engaging. Most Cathedral services use the Common Worship contemporary language rites. The Book of Common Prayer is used regularly for Choral Evensong. In 2023 we welcomed an average of 30 people to our Sunday 9am service, 275 to our 11.30am Eucharist and 80 to our Sunday Evensong service. In our weekly services we serve an average of 5 people at our Morning Prayer service (with around 80 online) and 50 at our weekday Evensong/evening services.

Our online worshipping community is extremely important to us. Our Diocese statistic reporting showed 6,427 views – in particular weekday Morning Prayer has a regular and loyal following from our Sunday congregation and beyond. At the beginning of each service, worshippers are directed to the Cathedral Website to access worship materials. A giving option is also included there to receive online donations.

Our four daily weekday services and prayers are offered in the context of a historical building that is free to enter and welcomes all - key to our commitment to public benefit. Visitors are also able to enter the Cathedral at other times for private prayer, to light a candle or seek guidance and conversation with one of our Day Chaplains.

In 2023, major services included installing a new Precentor and new Dean, both key leadership appointments to the spiritual and worship life of the Cathedral. The Cathedral continued to support the ministry of the Bishop and the wider Diocese, with the annual rhythm of Ordinations, Confirmations and Archdeaconry services, as well as services for children from schools across our Diocese. We welcomed partner institutions for services such as the Thomas Cure Evensong, Livery Company services and the High Sheriff’s Annual Service of Thanksgiving, when the Cathedral welcomed the senior judiciary and Lieutenancy. We also held a service to give thanks for the Coronation of King Charles III. The delivery by the Cathedral of major services which engage with and celebrate local institutions and civic bodies both in London and nationally is a key part of the fulfilment of our charitable purposes.

Examples of our service to the wider Christian community include our hosting of a Vigil of Prayer with contributions from members of the Nigerian community in Southwark after the death of Bishop Karowei, followed by a tribute to his ministry at his Service of Songs and Funeral Eucharist, held at the Cathedral and attended by Bishop Karowei’s family, members of the community, the Archbishop of Canterbury, and representatives of the Church of Nigeria and Anglican Communion.

In July, we hosted the Churches Together National Windrush Service with representatives of the Windrush Generation, diplomatic and political guests from the UK and Caribbean nations, and the Primate and Bishops of the Province of the West Indies. The service was an important major event on the national and international stage, engaging with diverse communities by incorporating readings, prayers led by children of the Diocese, music from varied traditions and the stories of those who made the journey to the UK as part of the Windrush generation and their families.

Liturgical and musical excellence in the delivery of our special services is key to how the Cathedral delivers its stated aims. It also engages in civic events and moments of National importance through worship and, whilst keeping its orthodox roots, offers an inclusive welcome to those of other worship traditions.

Parish and community

As a Parish Church Cathedral, we have an Electoral Roll which is compiled in accordance with the Church Representation Rules. At the Annual Parochial Church Meeting in May 2023, the total membership on the Electoral Roll stood at 444, an increase on the previous year. People living in the parish are welcomed into the Cathedral as their parish church for key parts of their spiritual life, including for baptisms, weddings and funerals. Our Southwark Pastoral Auxiliary offers ministry to those who are housebound. Throughout the year there are opportunities for congregational learning, including workshops for Admission to Holy Communion, preparation for Confirmation (supported by the Cathedral Reader), Lent and Advent sessions and other groups which offer opportunities for involvement in a wide range of activities.

A key part of our mission is to work with other communities and worship traditions in London in the delivery of our key objects. The Cathedral has a warm association with The Swedish Church in London, the Norwegian Church in Rotherhithe and St George’s Catholic Cathedral, Southwark, together with Southbank Churches.

We have a particularly close relationship with the charity ROBES, which supports the homeless community. The charity’s offices are on our Cathedral site, and we participate in staffing its Night Shelter for three months and hosting its fundraising SleepOut during the year.

Music

The Choir is made up of boys and girls, who sing both separately and together, and six Lay Clerks. In addition, there is the Merbecke Choir with a separate director and a membership including younger adults, many of whom have been choral scholars or former Cathedral choristers.

The Music Department at Southwark Cathedral is proactively engaged in community engagement and social inclusion on a daily basis. Although there is no choir school, through our work with chorister families, we extend our outreach to richly diverse communities in south London and beyond. Currently we work with over 80 children on a weekly basis and approximately 160 chorister and probationer parents representing local communities. Our Organist & Director of Music regularly visits schools to give talks, lead assemblies and run auditions, whilst building professional relationships to reflect our commitment to maintaining an inclusive and outward-facing cathedral community.

Both Choirs gave annual concerts last year and the Cathedral Choir commissioned the new Southwark Service (by generous donation of the Friends of Southwark Cathedral). The new set of canticles, by renowned composer Nico Muhly, was premiered by the Cathedral Choir in July 2023. Nico Muhly travelled over to London from New York to work with the choristers in the weeks leading up to the world premiere, delivering an important educational experience for our children.

Plans for 2024 include:

During the week of prayer for Christian Unity in January, our Organist & Director of Music invited the choir of St George’s RC Cathedral, Southwark, to sing with our choir at a well-attended ecumenical Evensong.
Our Sub-Organist hosted several organ workshops for Diocesan parish organists in March and April.

In June, we are hosting a special Cathedral organ day for schools across the Diocese. 200 children will be welcomed.
In July, our Organist & Director of Music will direct a grand diocesan choral Evensong with, we hope, a nave full of singers from Diocesan Parish Choirs.

Visitor Engagement

Our Visitor Engagement (VE) team has expanded this year as we look to increase the number of visitor events and grow the scale of our offer to visitors. We saw a full build back in 2023 from the drop in visitor numbers during the pandemic and this year recorded 204,000 visitors, 42,000 of whom visited during the three weeks during which we hosted The Museum of the Moon. We have also re-organised our stewarding of events to ensure that we can deliver a safe and accessible experience for all our visitors.

Worship will always be at the core of the Cathedral’s mission and charitable purpose, but as a Cathedral, parish church and place of spiritual focus in the community, we believe that we should be playing our part in bringing different communities together whatever their background or current circumstances. Our VE team play an important part in our mission by welcoming and engaging all, including those who are may be hesitant to come to a Cathedral or church, and by offering education and entertainment in the context of a faith space and heritage church building. The work is also key to the Cathedral’s fundraising activities and supports important retail and café income.

Activities in 2023 included:

Former poet-laureate Carol Ann Duffy for an evening of poetry and reflection;
History Show-Off – standup comedy about history and archaeology;
Iconographer Hanna Ward facilitating a Ukrainian Pysanky Easter egg painting workshop with members of the Ukrainian community;
Europe wide Cathedrals at Night initiative saw over 600 visitors come to the Cathedral on a dark Saturday evening to listen to organ music and enjoy the Cathedral space in the dark;
Open Gardens Day with the London Garden Trust on which we opened the Deanery garden to 1,000 visitors;
Heritage Craft and Mudlarking Day with over 2500 visitors engaging with mudlarks, archaeologists, colleges, museums and organisations who raise awareness of the River Thames;
Outdoor Family theatre in the Church yard;
Over 40,000 visitors to the Museum of the Moon art installation in just 20 days, the installation was accompanied by a programme of events which included music, talks, photography and comedy all looking at space science with awe and wonder at the universe;
A Tudor Christmas by Candlelight with historian Alison Weir and Siobhan Clarke speaking about Christmas during Tudor times.

Plans for 2024 include aligning the Gaia art installation to a fortnight’s programme looking at climate justice - a core part of our Christian mission - and building on our ministry of welcome and farewell in building and training a new Host team.

Education

The Cathedral delivers its ministry of education through The Southwark Cathedral Learning Centre, which provides a vibrant addition to the life of the Cathedral, bringing in hundreds of children a term to experience various learning opportunities and the peace and the holy atmosphere of the building. The Learning Centre was established in 1996 and since that time

has sought to provide opportunities for children, families and adults to learn about the Christian faith in ways which stimulate curiosity, awe and wonder, in the unique setting of the historical fabric of Southwark Cathedral.

The Learning Centre is operated by the Southwark Cathedral Education Trust, a separate charity to Southwark Cathedral. It has eight Learning Centre Trustees (LCT). The Canon Chancellor of the Cathedral is the current Chair and the other LCTs include a member of the Cathedral clergy, the Southwark Diocesan Director of Education and members of the Cathedral and wider community, many of whom have a background in education. The Learning Centre currently has one part time staff member who is managed by the Canon Chancellor.

Most of the work undertaken by the Learning Centre is with primary and secondary schools from the faith, community and independent sector, including diocesan church schools. Tours and trails aim to encourage a deeper sympathy for the Christian faith, an appreciation of the Church’s contribution to culture and community. Supporting engagement with the “big questions” of life, ethics and meaning, and the capacity to respond to the transcendent. Including expressing praise, gratitude, or respect for Creation. The Learning Centre ensures the Cathedral is used, in accordance with its charitable purposes, as a resource to support the spiritual, moral, social and cultural development of pupils, particularly in providing high quality experience outside the classroom.

This year, we welcomed nearly three and a half thousand children who studied a range of activities including:

Offering a diverse school programme for Early Years/Primary and Secondary to KS5.
Holding Programme workshops covering a range of subjects - largely RE, History, Citizenship, Philosophy and Ethics.
Delivering popular sessions such as Exploring Christian Signs and Symbols session (all Key Stages), God’s World story and games-based session (EYFS and KS1), Romans trail (KS2), Pilgrimage role-play (KS2) and our hands-on workshops (Candle-making, Clay Tiles and Puppets).
Delivering a secondary Hot Seat programme was also popular. Students pose questions to a member of our clergy.
Delivering a year-round programme of teacher training in partnership with SDBE.
Supporting core work with foundation schools through delivery of educational tours for students coming for their annual services and concerts.

The Learning Centre staff also work with the Sub Dean outside the school context in supporting, resourcing and advising on ministry to families and young people in the Cathedral community. Going forward, the Cathedral would like to support the Education Trust in developing the Learning Centre as a focus for the Cathedral’s adult learning programme, so that members of the congregation and wider Diocese can have access to further opportunities to take part in learning – deepening and enhancing their faith. At present, these opportunities are offered at Lent and Advent (as well as other occasions), but the LCTs would like to offer more regular learning opportunities both in person and online.

Object 1(b); to care for and conserve the fabric and structure of the Cathedral Church building;

Conservation work

The Conservation Management Plan is a major piece of work that was undertaken in 2023 and received input from across the Cathedral community. It was funded by the Southwark Cathedral Development Trust and will be a vital resource in guiding all Cathedral communities in matters of maintenance, repair and conservation of the historic setting and assets.

A project to clean-up the current North entrance to the Cathedral via the Mandela Porch and to improve the visitor welcome began in January 2024. With the generous support of the Friends of the Cathedral, the York flagstones of the Link were professionally cleaned and sealed to reveal some of their original colour and to improve on-going maintenance.

The Property Department since 2023 has run a Conservation Housekeeping Week in which volunteers are taught by a Conservator how to clean an element of the heritage fabric. In 2023, we dusted fragile stone in the Cathedral. In February 2024, staff and volunteers knelt in the Link with magic sponges and toothbrushes to test their newly acquired skills in cleaning the engraved lettering the York flagstones. The group will collaborate with other housekeeping groups in the wider heritage sector to share information. In 2023 we visited Westminster Abbey’s team, and we hope to arrange reciprocal visits with the Houses of Parliament this summer. Sharing training within the Heritage sector helps preserve a wider scope of skills and expertise to care for our religious and historic fabric.

The Cathedral has built a strong relationship with the City and Guilds Art School. Each year, the BA Conservation students are given practical briefs to execute inside the Cathedral. This year they have concentrated on the monuments of Lancelot Andrewes, John Trehearne and the tomb of Richard Humble. The Cathedral holds an annual Seminar in March at which the students present their research. We have encouraged students to continue to monitor specific parts of the Cathedral over a year to understand better some of the conservation challenges within the Cathedral. More recently, this monitoring has been extended to include vibration and dust in an attempt to reveal the impact on the Cathedral fabric of the major construction works at Minerva House. The C&G students will assist in the final stages of cleaning the engraved lettering in the stone floor of the Link.

In 2023 we secured the £30,000 Headley Trust grant to stabilise and carry out the first phase of the conservation of the Medieval timber roof bosses, of which £15,000 was received in the year. This work is being carried out off-site and they are due to return to storage in the Cathedral in April 2024. Some of the C&G monitoring work is to identify the best site for their re-presentation in the Cathedral. A greater visitor engagement piece is being planned to use the bosses as a powerful teaching tool and story-telling opportunity.

We continue to work with the relevant consultants to have a fully-working set of bells and Cathedral clock. We are seeking to introduce closer working relationships with the bell-ringing community, which we are fortunate to have. Their hard work makes present the role of the Cathedral in its urban environment on a regular basis and the wider area benefits from their uplifting peels.

Sustainability

The Cathedral hopes to continue to work closely with the Diocese in delivering its Net Zero Carbon targets for 2030 (Diocese target of 2035). 2023 was used to gather information about the energy performance of the Cathedral buildings and to put in place some site-wide policies, e.g. all bulbs to be replaced by LED bulbs and fittings when being replaced. The Cathedral building currently has approximately 50% LED bulbs in use. As part of the Cathedral cafe reopening with our new partners, the Cathedral refurbished their washrooms and installed LED lights throughout.

The Cathedral is part of The Southwark Climate Collective, a group established by the Better Bankside Business Improvement District and one that shares information, advice and provides free consultation via an energy audit. The results of the audit will help the Cathedral make decisions about the next best areas in which to invest in renewable infrastructure.

The congregation has been active in forming a sustainability group that worked consistently with the Cathedral during 2023/24 to make a successful submission to A Rocha Eco Church for a Silver Award. This was awarded in April 2024.

The Cathedral is a designated Cool Space in London in the Summer (providing shelter from the extreme heat) and it is important that our planting and landscaping continue to support this. The Cathedral Grounds are managed to increase biodiversity and protect existing eco-systems. Both the South-West churchyard garden and Millennium Courtyard provide peaceful spaces available for public use in a busy and otherwise noisy part of the borough and we have continued to work this year to maintain and improve these spaces.

Staff information, training and regular newsletters have encouraged changes in behaviour on site and in our community, including organic and recycled consumables, reduction in paper use for services and better control of lighting and heating use.

Estate management

The Cathedral has spent considerable time overseeing the upkeep and care of the All Hallows Community Garden in Copperfield Street, SE1 - part of its estate. We are now collaborating with Bankside Open Spaces Trust who support the volunteer gardening group. With their help we have installed water butts, planted bulbs and invited St Mary’s Eco Church to use the space on a regular basis, which enables us to explore other ways of expressing Christian faith and mission. This has enhanced a peaceful and public green space in the middle of SE1 – it remains consecrated ground.

The All Hallows Church building was identified as having structural damage due to subsidence that made it uninhabitable for residents and sadly, we had to evacuate this property. It is currently propped and secured, awaiting further plans.

Both clergy housing and commercially let property underwent improvement projects, particularly to kitchens and bathrooms. Further listed-building works are planned for our property portfolio for 2024. The challenge is to meet energy reduction targets in ageing building stock.

The Property Department has also had to respond in 2023 to several urgent repair projects to the ancillary buildings to the Cathedral. This part of the site is important to ensure the full use of its spaces over a seven-day working-week and to be able to host a varied programme of events and activities in support of the Cathedral’s objects. Works have included:

Remedial work to stem ingress of water beneath the external wall of the former QE II room which led to significant damage to the electrics, heating and the decorative finish. The room is now re-instated as the new Cathedral Shop, which furthers our objects by selling religious goods and books as well as gifts and souvenirs;
Repair works to the 1882 concrete slab structure of the Cathedral Offices in Montague Chambers;
Work to improve building and fire safety.

The Property team’s 2024 plans include:

Agreement of a Salvage Strategy in case of fire, flood and other causes of damage and a Damage Control Plan.
Improvements to Health and Safety on site with better fire-rating, emergency lighting and safe access and certification.
To apply for the Eco Church Gold Award this year. We are concentrating on being leaders in behaviour change to make the difference required to meet the ambitious targets of the Church of England.
Following this, the Archaeological Chamber will be professionally cleaned also. This will be followed by a plan to re-present the content to visitors.

FINANCIAL REVIEW

The total operating result for 2023 before gains and losses on investments was a deficit of £30,275, down from a deficit of £132,977 in 2022. The unrestricted result was a small surplus of £6,700, offset by a restricted deficit of £36,975.

Income was up from £2.32m to £2.75m. The most significant contribution, £309k, to the increase arose from trading and fundraising which represents the income from the trading subsidiary and Visitor Engagement. The fall of £45k in donations and legacies was more than offset by an increase of £109k in grants in support of mission. The most significant contribution to the increase in investment income of £59k came from investment property income which increased £56k to £230k, in part because of the hire of parking spaces to a film company.

Expenditure also increased, by £329k, from £2.45m to £2.78m. The largest contribution to this increase came from an increase in expenditure on raising funds. An increase of £116k relating to trading and fundraising activity supported a £309k increase in income. An increase of £112k relates to work on investment properties.

There was a net loss of £1.61m on the revaluation of investments in 2023, principally because of a reduction in the valuation of investment properties of £1.64m, marginally offset by increase in the valuation of other investments. A valuation of the investment property portfolio was done by a professional firm of valuers to arrive at its value on 31 December 2023. The valuation at the end of the previous year had been carried out using a combination of the rents being charged for the properties and a market yield indice for central London.

Total consolidated funds at 31 December 2023 were £17,393,769. Of these £184,992 were restricted funds and £16,345,057 were endowment funds. The unrestricted fund was £863,720, of which £106,673 was represented by the net value of tangible fixed assets and £675,000 by investment properties. The free reserves were therefore £82,047, up from £16,312 at the end of 2022.

Reserves policy

The Chapter’s aim is to build up its free reserves to levels sufficient to address the Cathedral’s long-term sustainability and need to maintain and preserve the Cathedral’s fabric and heritage. The Chapter will consider the appropriate level of reserves during 2024 in the context of risk management and recommendations from relevant committees.

TRUSTEE PLANS FOR 2024

In the coming year, Chapter has identified the following as its priorities in the delivery of the charity’s objects:

Recruitment of new members of the senior management team following the departure of the Chief Operating Officer and Chief Financial Officer;
Development and improvement of the way in which we welcome visitors and worshippers onto our site to include:
Recruiting paid hosts to enhance the Cathedral visit. These new staff will complement our current Welcome Desk team, ensuring we can welcome visitors more consistently. Paid hosts will be positioned at the Welcome Desk and inside the Cathedral, and their role will involve asking visitors to donate to the running costs of the Cathedral and its work, provide information and be on hand to assist with any visitor requests.

Improving the Cathedral’s historical interpretation – so that we can tell the story of the Cathedral and its surrounding area in Southwark, and what we stand for today and our vision for the future. This will be led by our Heritage Group and will include looking at works in the Cathedral church of contested heritage.
Better site curation and wayfinding, including installing external posters/notice boards along the perimeter of the Cathedral railings to advertise not only our core service times but also upcoming events at the Cathedral – with an expectation that this will lead to an increase in visitor numbers at services, recitals and events. This will include production of an updated version of the Cathedral Visitor Map in various languages and in braille.
Improving our visitor experience for children and young people with events and activities tailored to families and children.
Work on the fundraising and development capacity of the Cathedral through the work of a Fundraising Group, recruitment of a Fundraising Manager and development of a legacy programme;
Improvement of the data management of the Cathedral through the recruitment of a fixed term Data Manager to implement senior management’s GDPR Plan and sign a service level agreement with Diocese IT services to better support the Cathedral’s IT function;
The undertaking of a full Estate valuation, stock condition report and review of use, led by the Property Review Group;
Work towards the Trustees approving longer term projects as part of a seven-year Site Strategic Plan to include:
Southwest Entrance to Cathedral – a landscaping project that allows a more generous pedestrian entrance and compliant access ramp to the SW porch of the Cathedral whilst preserving the churchyard for Cathedral visitors only;
Harvard Chapel – the re-ordering of the chapel to provide an accessible, heated space for quiet prayer and worship;
Millennium Courtyard – a landscaping project considering a safe and functional stone surface for access and provision of a public outdoor space during opening hours;
Tower Crossing Platform and Nave Floor – replacing existing timber finishes with stone and incorporating under-floor heating in-line with NZC plan and visitor worshipper comfort and welcome;
Access Projects – compliant ramps to Retrochoir, west end of Link in addition to Harvard Chapel and southwest entrance;
Re-siting and improving toilet and hygiene facilities for visitors;
Lighting Projects – LED controlled lighting systems for the Cathedral both internally and externally.
Looking at how better to use the Cathedral’s ancillary site to deliver social impact and work with community groups.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance

Southwark Cathedral completed its implementation of the Cathedrals Measure 2021 (the Measure) and was granted its second certificate from the Church Commissioners in late October 2022. It was only the second cathedral in England to achieve certification and the first parish church cathedral to do so. To this extent we feel that we are very much in the vanguard of the thinking, with the Church Commissioners and our external legal advisers, about how the Measure’s implementation will work in practice, including the appointment of a new board of charity trustees and the Senior Non-Executive Member (SNEM), and in drafting many of the supporting documents including committee terms of reference and policy. The then Dean and Chief Operating Officer were asked to share these experiences at the National Cathedrals Senior Leadership Conference in November 2022 and have been asked to provide one to one support of other cathedrals on their journey to charity registration.

We achieved registration as a charity on 1 November 2022 and are registered, with a charity number, under the auspices of the Charity Commission. Our Chapter members are Trustees within the meaning of the Charities Act 2011 and have now worked for over a year under the new Governance framework.

The implementation of the new Measure involved the dissolution of the Cathedral Council as part of our governance structure, although we recognise and continue to call upon the huge ongoing value of the experience and wisdom of Council members. The College of Canons remains in place but no longer has any responsibility for the governance of the Cathedral. Despite this, the College remains a highly important group in the Cathedral’s life.

The Dean is the principal dignitary of the Cathedral after the Bishop and has a particular role in ensuring the proper performance of Divine Service in the Cathedral. As a charity Trustee, the Dean is “primus inter pares” among his fellow trustees, all of whom must exercise independent judgement. However, the Dean also has several statutory roles and responsibility for the governance of the Cathedral. The Dean’s consent is required to settle Chapter’s budget and their ratification is required for Chapter decisions made under the chairmanship of the SNEM. Chapter meets ten times a year. Each meeting includes Lectio Divina to consider a Biblical text, a reflection on the Trustees’ public benefit obligations and Compliance matters including complaints, serious incident reporting and declaration of interests.

Trustee Recruitment and Training

The Chapter (our Board of charitable Trustees) is now the body that exercises governance and has responsibility for the overall life of the Cathedral. 2023 was the first full year in which Chapter exercised this function as trustees of a registered charity. The Chapter consists of the Dean as Chair and two further executive Trustees who are Residentiary Canons, the Senior Non- Executive Member (SNEM) appointed by the Bishop and Vice Chair of Chapter, three non-executive Residentiary Canons alongside six lay non-executive Trustees. Two of our lay non-executive members are Cathedral Wardens, due to our status as a parish church cathedral, and we are also required to have our Chair of Finance Committee on Chapter too. The Senior Management Team has welcomed the challenge, scrutiny and oversight that the newly formed Chapter has already brought, and the Cathedral is grateful for the wide range of talent and experience on its Board.

Chapter’s function and remit is enshrined in its new Constitution & Statutes, which were drawn up based on given Church Commissioners templates, subject to Chapter discussion, direction from the Bishop, and legal advice from our Registrar. The specific role of Chapter members was also agreed by the former Chapter as part of recruitment for new Chapter members, and articulated in a Job Description which was in turn used for advertisements for new Chapter members. We also deployed a skills matrix audit to determine the skills that were most required

on the Board of Trustees.

When new Trustees are appointed, we follow an induction process suggested by the Association of English Cathedrals which involves the Trustee being invited to meet staff, attend worship at the Cathedral, be guided on a historical tour of the fabric of the Cathedral and its ancillary buildings and receipt of the documents below. We also assist Trustees with establishing their own account on the Charity Commission website and completing necessary documentation including a Fit and Proper Person Declaration a Registration and Declaration of Interest form. All Trustees have undertaken a variety of training opportunities geared towards their roles as Charitable Trustees during 2023. They will continue to be offered a variety of relevant training opportunities during 2024 and beyond.

Documents provided to Trustees include Cathedral Constitution and Statutes, Charity Commission welcome note and CC3 (The Essential Trustee), Charity Governance Code, The Cathedrals Measure 2021 and related statutory guidance, the Care of Cathedrals Measure 2011 and CFCE guidance documents, role description, minutes of recent Chapter meetings, dates of the year’s Chapter and related meetings, the most recent Annual Report and Financial Statements, the current budget and most recent finance report and management accounts, the Risk Register, the Terms of Reference for Chapter committees, the Conflict of Interest policy, copies of policies approved by Chapter and an Organisation Chart.

Chapter Committees

Chapter is supported by several committees that are prescribed by the Cathedrals Measure 2021.

Nominations Committee recommends to the Chapter the appointment of individuals to Chapter and other committees and ensures that all appointments are fair and transparent with diversity and inclusion at their core. Southwark chose to amend the template terms of reference for its Nominations Committee to reference diversity and inclusion, ensuring that appointments reflect the specific context and diversity of Southwark’s parish setting and wider Diocese, and also to enshrine the Diocese Anti-racism Charter in its work. Chapter has also chosen to use its Nominations Committee to advise on other committee membership and wider appointments such as suggested Governors for the local foundation school.

Audit and Risk Committee brings independence of approach to monitoring and recommending on the Cathedral’s risk management and its audit functions. The Dean does not sit on either the Finance or Audit & Risk Committees but may attend, and speak at, their meetings. We believe this to be a particularly strong committee with a diverse membership. Further information on how the Cathedral approaches and manages risk is set out in the Risk section below.

Finance Committee is concerned with the finances and accounts of the Cathedral, and also its investment strategy. It makes recommendations to the Chapter in relation to its budget, financial processes and financial and investment policies. Nominations Committee appointed a member of Chapter into the role of Interim Chair of Finance in late 2022 and has recently confirmed that chairmanship. We have however found it difficult to recruit and appoint a full complement of members to this committee this year and are continuing to search for suitable members whilst ensuring an appropriately diverse and skilled committee.

The sub-committee terms are to be reviewed by Chapter every three years. Each member, including of Chapter, is appointed for a term of up to four years, although some Chapter members have been appointed for a specified shorter period to allow for a staggered rolling membership and prevent all members ending their term at the same time.

Under the Care of Cathedrals Measure 2011, the Fabric Advisory Committee is responsible to the Cathedrals Fabric Commission for England and considers applications from the Chapter regarding proposed development of and changes to the Cathedral’s fabric. There are eight

voting members, four appointed by the Cathedrals Fabric Commission for England and four by the Cathedral Chapter. In addition, the Dean, Chief Operating Officer or Head of Property, Cathedral Architect, Cathedral Archaeologist and one of the Cathedral Wardens attend the four meetings each year and the committee advises on and ensures protection of the fabric of the Cathedral and its precincts.

Connected Organisations

There are five other formally-constituted organisations involved in aspects of the Cathedral’s affairs:

Southwark Cathedral Enterprises Limited

This company is wholly owned by the Cathedral, and manages the main commercial activities of the Cathedral. This includes retail, conferences, special events, commercial bookings for social occasions and concerts, and the operation of the café. These streams rely on SCEL using the Cathedral’s premises, and development of the licensing structure for this use is currently under review. Profits are, if so decided by the Board of SCEL, donated to the Cathedral.

The Southwark Cathedral Development Trust (registered charity 1069914)

This registered charity, was initially formed as a vehicle for the Millennium Project funds and remains a separate charity, not under the control of the Chapter and with independent trustees. Funds held in it can be applied for by the Cathedral and are held for the purposes of Music, Fabric and Social Mission costs.

Southwark Cathedral Education Trust (registered charity 1058369)

The Southwark Cathedral Education Trust is an independent registered charity which oversees the work of the Learning Centre and seeks to help teachers cover a range of national curriculum subjects through experience- based visits and workshops on site at the Cathedral. The Cathedral makes available to it both classroom and office space. It has independent trustees and is not under the control of the Chapter.

The Friends of Southwark Cathedral (registered charity 1159545)

This registered charity provides financial support to the Cathedral for repairing, maintaining and beautifying the Cathedral church, and assisting the Chapter in their mission and ministry. It is not under the control of the Chapter. Proposed projects for which the Cathedral applies for funding are considered by its independent trustees.

The Dean of Southwark’s Fund (registered charity 275354)

This registered charity provides financial support for extending, developing and maintaining the buildings, fabric, amenities and work of Southwark Cathedral as well as the advancement of the Christian religion. It has independent trustees and is not under the control of the Chapter.

Staffing and Management

We currently have a paid lay staff of around 40 members of staff (35 FTE), working across a range of departments between Southwark Cathedral and Southwark Cathedral Enterprises Limited (our trading subsidiary).

Managerial, operational and staffing decisions are made at the Senior Management Team (SMT) meeting. SMT meets weekly, chaired by the COO and attended by the Dean, the Canon Pastor (Sub-Dean), Precentor and CFO. Other department heads may attend from time to time

as required. SMT’s Terms of Reference mean that it debates and decides upon those matters delegated to it by Chapter. It also receives and decides matters escalated from Heads of Department and other line-managed staff for approval. The meeting is minuted, and an action tracker drawn out of the minutes to ensure that necessary actions are followed up.

Heads of Department lead the various operational functions of the Cathedral and come together fortnightly in a meeting chaired by the COO – an important platform for sharing news and views and ensuring a cohesive and co-operative approach across departments.

There are several other important regular decision-making forums: Diary Meeting, Heads of Department Meeting, Visual Arts Group, Sustainability Committee and Health, Safety & Security Committee meet on a regular basis, and are formed of Cathedral staff, Diocesan staff and volunteers. All of these fora inform ideas and matters for discussion at SMT or Chapter.

Our lay staff pay structures are not set formally, and benchmarking exercise is undertaken with the Diocese staffing structure, other Cathedral salaries and average London salaries.

Any annual salary uplift takes place each year in conjunction with the Budget setting for the year following. Any percentage uplift is discussed initially between the CFO and COO, presented as part of the draft Budget to SMT, Finance Committee and then Chapter for approval. Any change is applied from 1 January each year.

Chapter, in consultation with the Finance Committee and the Board of Southwark Cathedral Enterprises, has for many years decided to pay all its staff at least the London Living Wage (and also to require its main suppliers and partners to pay LLW). This rate of pay is subject to review each year. The rate is calculated annually by the Resolution Foundation and overseen by the Living Wage Commission.

Our Volunteers

We are very fortunate to have a base of 378 volunteers, many of whom offer their time in more than one role. This contribution of service is significant and vital to our ability to undertake many activities that have an impact on our beneficiaries.

Volunteers undertake a wide range of roles based both at the Cathedral and in the local community. Within the Cathedral teams, there are pastoral roles (e.g. day chaplains, meaning that we can offer a caring presence in the Cathedral church every day for visitors and pilgrims, in a way that would otherwise not be possible), visitor experience roles (e.g. Stewards, Welcomers, again to provide welcome and support to visitors which the Cathedral would not be able to fund at such a level of attendance) and operational roles (e.g. flower arrangers, volunteer receptionists). We also offer more outward facing opportunities involving the local community, including for example, volunteering with the Cathedral’s Learning Centre, which welcomes local school groups to the Cathedral, and at our ancillary sites (e.g. EcoChurch volunteers at All Hallows Church).

The Cathedral’s Volunteers Officer has played a crucial role in galvanising our wide volunteer base, ensuring they are all appropriately recruited and trained, and engaged with the Cathedral’s values and wider missional purpose. One way of achieving this was through a Volunteers Fair, piloted in 2023, at which each department at the Cathedral was invited to advertise a volunteer role. Not only was this a useful exercise for departments to help bolster the work the Cathedral teams are doing, but it also formed an opportunity for volunteers to understand more about the Cathedral’s current and upcoming projects, and for staff and volunteers to get to know one another. Following the fair’s success, it is hoped that this will become an annual event to be built on further in 2024.

Safeguarding

Chapter puts safeguarding at the heart of what it does. The Chapter’s Safeguarding Lead (CSL) is the Canon Precentor. The CSL receives the National Safeguarding Team (NST) regular bulletins and leads the review and adaptation of our policies as advised. We are currently working on training for the implementation of the new National Case Management System with a view to implementing this according to NST recommendations and for our next SCIE audit in 2026. We also receive considerable support and advice from the Diocesan Safeguarding Team. The CSL has regular meetings with the Diocesan Safeguarding Adviser which, together with the annual Diocesan Safeguarding Advisory Panel focused on the Cathedral, ensure that we are compliant with diocesan policies.

Policies are formally reviewed annually by Chapter and this year were amended to reflect the best practice guidance of all our volunteers being required to undertake training at basic level. All members of Chapter are trained to Leadership level (lay members) and Senior Leadership level (clergy and senior staff members). The Cathedral Safeguarding Administrator ensures that all training levels are up to date. Those involved in recruitment at the Cathedral have undertaken the new Safer Recruitment training either online or at specially organized in person training sessions. Safeguarding policies and procedures are in place for children, young people and vulnerable adults and these are kept under review and meet the Church of England’s national policy and practice guidance. The Chapter confirms that it has complied with the duty of the Church of England Safeguarding and Clergy Discipline Measure 2016 to have due regard to policy and guidance issued by the House of Bishops on matters relating to safeguarding.

We have three Cathedral Safeguarding Officers, two of whom help to deliver the large amount of in-house safeguarding training required. The CSOs were invited this year to a staff breakfast to ensure that all staff colleagues were familiar with them and their work, again to foster a robust safeguarding culture and improve our practice. There is a standing notice about safeguarding in our weekly news-sheet and e-newsletter. There are strong visual notices about safeguarding in the Song School and in the context of our Junior Xpress meetings.

Any potential gaps in good practice identified by the Cathedral’s Safeguarding Officers or any member of staff or the Cathedral community are reported in accordance with our Safeguarding procedures.

Recruitment procedures follow the Church of England’s guidance on safer recruitment and all paid and volunteer staff who work with children and vulnerable adults are subject to Disclosure and Barring Checks prior to appointment and complete a confidential declaration. These are renewed every three years.

Safeguarding is reported on, and discussed as appropriate, at every SMT meeting and every Chapter meeting, led by the CSL as a standing agenda item. The report at each Chapter meeting includes basic information on any ongoing issues, a regular training report and any matters that Chapter needs to consider. Confidential issues are not reported in detail to the wider meeting, but a small group of Trustees has been formed to discuss matters in appropriate detail whilst ensuring the confidentiality of matters discussed.

There is an informal safeguarding committee, made up of the CSL and the three Cathedral Safeguarding Officers. This group meets monthly for appropriate information sharing, mutual support and to ensure that the team is as effective as possible. As CSOs, the members of this group all have the necessary skills, experience and training. We employ a part-time Safeguarding Administrator to help with the planning and administration of training sessions and to assist the safeguarding lead. The Safeguarding Administrator also undertakes and records Disclosure and Barring Checks and leads on preparation for the implementation of new Safer Recruitment guidelines.

The CSL also works closely with the COO in her capacity as head of HR and lead on

governance, legal matters and risk. This year, a File review was undertaken by an independent reviewer working with the COO’s office, of all our paid and volunteer staff files to ensure safeguarding compliance and adherence to safer recruitment practices.

This year two reports were made to the Charity Commission under the Serious Incident Reporting framework in relation to historical safeguarding matters. The Charity Commission has confirmed its satisfaction with the conduct of matters reported.

The Trustees remain clear that there is a strong safeguarding culture prevailing at the Cathedral and that a safe environment for children and vulnerable adults is provided in the Cathedral, whilst acknowledging that there is always more to be done to ensure this safety.

Fundraising

Active fundraising currently sits within the finance function. We raise funds for the organisation and its charitable purposes through individual gifts, trusts and foundations grants, legacies, and corporate support. We seek to encourage donations and do not engage in pressurising potential donors. We make every effort to make sure that our fundraising does not intrude on peoples’ privacy, that it is not unreasonably persistent and that it does not place pressure on anyone to donate. We develop strong relationships with our funders and listen to their preferences and needs.

Research and vetting of potential supporters are key parts of fundraising and the processing and storing of personal data is necessary. We follow strict procedures for storing and maintaining of such data. All data is stored and protected, with limited access to within the wider team. We consider the ethical impacts of our fundraising and seek to make sure that we do not accept donations where to do so would represent a conflict of interest, a reputational risk, or would impact on our ability to fulfil our mission.

In 2022-23 the charity did not engage with independent professional fundraisers. We also did not receive any complaints in relation to fundraising or raise any matter with regulators. Should any complaints arise, they will be handled swiftly and interrogated thoroughly and we will respond appropriately to all Freedom of Information requests from individuals.

Risk Management, Reporting and Monitoring

Southwark Cathedral is a complex organisation that is exposed to several risks - financial, legal and reputational. It is the ultimate responsibility of the Chapter to regularly review and assess the risks faced by the Cathedral in all areas of its work, and for ensuring effective and adequate risk management and that internal controls are in place to manage our risk exposure appropriately. Chapter recognises that any risk management system can provide only reasonable and not absolute assurance against loss.

Chapter is supported in its assessment of risk by the Audit & Risk committee, Senior Management Team and Finance Committee (which pays particular attention to financial risk). A key target identified by these groups for this year was the re-structuring and updating of the Risk Register, a ‘live’ document which outlines both the main risks and organisational risks faced by the Cathedral, along with causes, mitigations and target actions with timelines and can be an effective and dynamic tool for those managing the risks.

The Cathedral has sought advice on re-structuring and content revision from our insurers, Ecclesiastical ERM (Enterprise Risk Management) team and the members of the Audit & Risk Committee. Each risk listed has been assigned a risk owner; generally, the Head of Department or staff member best placed to manage and mitigate with specific actions that particular risk and Risk Owners consulted to develop a series of planned actions (with timelines) as a means of monitoring and measuring outcomes.

Primary Risks to the Cathedral

The following were identified as primary risks for the Cathedral in 2023:

Financial Risks

Insufficient voluntary income;
Reduced ability to generate trading and property income due to external factors;
Lack of/delay in Chapter strategic planning and staff resource to support fundraising, leading to additional strain on existing staff resources;
Poor financial controls and processes, resulting in cash flow issues and reduction of cash reserves, poor credit rating and poor financial governance and audit findings.

Identified mitigations:

Diversification of income streams;
Maintenance of good client/customer relations;
Adequate business planning;
Analysis of regular giving data;
Encouragement of congregation to maintain and increase regular giving;
Active engagement of possible donors;
Appointment of a CFO and strengthening of Finance team;
Reassessment of policies and processes; staff training as part of this.

Safeguarding risks:

Legal and financial risk from claims in respect to current instances of abuse;
Legal and financial risk from breaches of current policies and processes;
Legal and financial risk from claims in respect of non-recent instances of abuse. Reputational risk; negative publicity to Cathedral, loss of stakeholder confidence.

Identified mitigations:

Liaison with Diocesan Safeguarding team;
PCR2 review and ongoing Diocese review;
Professional communications advice taken where appropriate;
Safeguarding training;
Strong safeguarding culture throughout the organisation;
Safer recruitment;
Continuous improvement through review of the SCIE action plan.

Fabric and Building risks:

Insufficient funding to conduct planned and unplanned repairs;
Acute programme of refurbishment required on ancillary buildings leading to high costs of repairs;
Health and safety concerns about buildings; risk to life and safety of visitors and staff.

Identified mitigations:

Adequate budget provision allowing for departmental planned works;
Build cash reserves for unplanned repairs;

Build strong relationships with independent charities whose charitable purpose is to support the Cathedral and its fabric;
Risk assessments completed for all events and contractor work;
Daily site walk round by Facilities team;
Regular review of Health & Safety risks (including reporting accident, incident and near misses) at fortnightly Health, Safety and Security committee meetings;
Staff training and awareness.

Governance, Legal and Strategic risks:

Legal, financial and reputational risk from breaches of policies and processes adopted under the new Cathedrals Measure. Failure to comply with the Charities Act 2022 and/or Charity Commission guidelines;
Inability to articulate our strategy, leading to lack of progress on actively translating our mission into practical achievements;
Congregational perception of drift or lack of direction, loss of public profile and financial risk to regular giving from stakeholders.

Identified mitigations:

Familiarisation and regular review of the Constitution and Statutes and Governance documents;
Appropriate financial provision and professional advice sought if required;
Budget allocation; training and development, provision for work in Chapter’s strategy document;
Appropriate review of Chapter’s strategy and monitor progress against objectives;
Be clear about our vision and priorities with the congregation and ensure staff understand what we ae working towards and how to play their part.

Data protection and IT risks:

Breach of data protection law including GDPR;
IT and communication failures;
Lack of file and database security.

Identified mitigation:

Adequate investment in IT infrastructure and maintenance. Staff/volunteer training;
Development of a retention schedule to assist with the appropriate management of hard copy and digital files;
Restructuring of staff IT systems;
GDPR action plan implemented to ensure compliance across the Cathedral departments.

People risks:

Difficulty attracting and retaining staff and loss of “key man” staff may lead to inability to deliver necessary operational functions, financial loss and reputational damage;
Threat to safety of our people (Clergy, staff and volunteers) due to an external event (e.g. terrorist incident, flood, fire or any external incident).

Identified mitigations:

Developing attractive staff packages to assist with recruitment and retention;
Attention to all staff wellbeing and development to retain and energise current staff for optimum performance;

Adequate budget allocation for attractive salaries, staff resourcing, training packages;
In terms of key-man loss; develop deputy roles, consider succession planning;
o In terms of threat to safety; maintain a strong relationship and regular contact with the Police regarding events which might have security considerations. Regular review of security at bi-weekly Health, Safety and Security committee meetings and SMT. Training organised for staff and volunteers;
Adequate budget provision for; loss of income and business interruption up to four years cover.

REFERENCE AND ADMINISTRATIVE DETAILS

Full legal name and address of Charity

The Cathedral and Collegiate Church of St Saviour and St Mary Overie, Southwark, also known as Southwark Cathedral, London Bridge, London, SE1 9DA

Telephone: 020 7367 6700

General email address: cathedral@southwark.anglican.org

Web site: www.southwarkcathedral.org.uk

Administrative Body

The Cathedral's administrative body is the Chapter. The members of the Chapter (Trustees) during the year and up to the date of approval of this report are:

The Very Rev’d Andrew Nunn, Dean (resigned 4 July 2023)

The Very Rev’d Dr Mark Oakley (from 3 December 2023)

The Revd Canon Michael Rawson, Sub Dean, Canon Pastor and Canon Residentiary The Rev’d Canon Jay Colwill, Canon Missioner and Canon Residentiary (resigned 3 December 2023)

The Rev’d Canon Jeremy Clark-King Canon Treasurer and Canon Residentiary

The Rev’d Canon Wendy Robins, Canon Chancellor and Canon Residentiary

The Rev’d Canon Andrew Zihni, Precentor and Canon Residentiary (resigned 23 April 2023) The Rev’d Canon Kathryn Fleming Precentor and Canon Residentiary (from 10 September 2023)

The Rev’d Canon Roxanne Eversley (from 4 February 2024)

Mrs Linda Hutchinson, Cathedral Warden Mr Daniel Chumbley, Cathedral Warden Mr Simon Kingston Ms Gill Reynolds Mrs Lynn Cooper Ms Amuda Poongavanam

Statutory office holders

Chief Operating Officer Justine Horseman Sewell (to 9 April 2024) Chief Finance Officer Dr David Edgar (from 5 June 2023 to 13 April 2024)

Cathedral Architect Ms Kelley Christ, A&RME Archaeological Consultant Dr Jackie Hall

The Trustees delegate the day-to-day management of the charity to the Senior Management Team currently comprising:

The Very Rev’d Dr Mark Oakley, The Rev’d Canon Michael Rawson, The Rev’d Canon Kathryn Fleming, Justine Horseman Sewell (COO) (to 9 April 2024) Dr David Edgar (CFO) (from 5 June 2023 to 13 April 2024)

The Finance Committee

The Very Revd Andrew Nunn (to 4 July 2023) Mr Daniel Chumbley (Chair) Mr Colin Johnston Mr Steve Cockell Mr Richard Cornwell Mr Richard Holman The Rev’d Canon Jeremy Clark-King

The Audit and Risk Committee

Mr Anthony Demby (Chair) Ms Juanita Fan Mrs Amanda Adamson-Hill Ms Minjie Lin The Revd Canon Wendy Robins, Ms Amunda Poongavanam

The Fabric Advisory Committee

The Rev’d Charles Pickstone – Chair Professor Maurice Howard Mr Luke Hughes Mr Guy Rowston Ms Phillida Shaw Mr Alexander Holton (from 11 January 2023) Ms Anna Joynt (from 11 January 2023) Ms Katie Lithgow

The Nominations committee

Gill Reynolds (chair) Daniel Chumbley Linda Hutchinson Kathryn Fleming Simon Kingston

Bankers

National Westminster Bank plc 10 Southwark Street London SE1 1TT

Chapter Solicitors Winckworth Sherwood Arbor, 255 Blackfriars Road London SE1 9AX

Independent Auditors Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP

Surveyors

Rapleys LLP 51 Great Marlborough Street London W1F 7JT

Insurers

Ecclesiastical Insurance Group Beaufort House Brunswick Road Gloucester GL1 1JZ

Investment Managers

Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN

STATEMENT OF RESPONSIBILITIES OF THE CHAPTER

In relation to the Annual Report and Financial Statements, Chapter members are responsible for preparing them in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to Cathedrals in England and Wales requires Chapter members to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Cathedral and of the incoming resources and application of resources of the Cathedral for that period. In preparing these financial statements, Chapter members are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Cathedral will continue in business.

Chapter is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Cathedral and enable them to ensure that the financial statements comply with the Charities Act 2011, the Cathedrals Measure 2021 and the provisions of the Cathedral’s Constitution and Statutes. It is also responsible for safeguarding the assets of the Cathedral and therefore for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Very Reverend Dr Mark Oakley Dean

Date

INDEPENDENT AUDITOR’S REPORT TO THE CHAPTER MEMBERS OF SOUTHWARK CATHEDRAL

Opinion

We have audited the financial statements of Southwark Cathedral for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Cathedral Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group’s and Cathedral’s affairs as at 31 December 2023, and of the group’s incoming resources and application of resources, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the Cathedral in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Chapter members’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and Cathedral’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Chapter members’ with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Chapter members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is

a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

the information given in the Annual Report is inconsistent in any material respect with the financial statements; or
the group and Cathedral has not kept adequate accounting records; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we required for our audit.

Responsibilities of Chapter members

As explained more fully in the Chapter members’ responsibilities statement set out on page 23, the Chapter members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Chapter members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Chapter members are responsible for assessing the Cathedral’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Chapter members either intend to liquidate the Cathedral or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Cathedral’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Chapter members.
Conclude on the appropriateness of the Chapter members’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Cathedral’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Cathedral to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the Cathedral.

Our approach was as follows:

We obtained an understanding of the legal and regulatory requirements applicable to the Cathedral and considered that the most significant are the Cathedrals Measure 2021, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
We obtained an understanding of how the Cathedral complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the Cathedral's Chapter members, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Moore Kingston Smith LLP Statutory auditor

Date 9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006

SOUTHWARK CATHEDRAL

Consolidated Statement of Financial Activities for the year ended 31[st] December 2023

Unrestricted Restricted Note fund funds £ £ Income from: Donations and legacies 3 465,312 21,061 Grants in support of mission 4 71,899 611,734 Charges and fees arising in course of mission 5 213,676 4,320 Trading and fundraising 6 1,055,355 16,529 Investments 7 233,747 20,151 Other income 35,433 - Total income 2,075,422 673,795 Expenditure on: Raising funds 8 755,976 92,225 Charitable activities: Ministry 9 363,794 352,113 Cathedral and precincts upkeep 10 759,496 251,550 Education and outreach 11 89,668 14,883 Community, parish and congregation 12 97,364 - Other expenditure 2,423 - Total expenditure 13 2,068,721 710,771 Net income/(expenditure) before gains/(losses) on revaluation of investments 6,701 (36,976) Gains/(losses) on revaluation of investments (545,556) 2,379 Net income/(expenditure) (538,855) (34,597) Transfers between funds 26 375,265 (24,709) Net increase/(decrease) in funds (163,590) (59,306) Reconciliation of funds: Total funds brought forward 1,027,310 244,298 Total funds carried forward 26 863,720 184,992	Endowment funds £ - - - - - - - - - - - - - - - (1,068,016) (1,068,016) (350,556) (1,418,572) 17,763,629 16,345,057	Total funds Total funds 2023 2022 £ £ 486,373 531,563 683,633 574,291 217,996 253,562 1,071,884 762,797 253,898 195,192 35,433 - 2,749,217 2,317,405 848,201 621,302 715,907 711,236 1,011,046 889,912 104,551 120,234 97,364 105,111 2,423 2,587 2,779,492 2,450,382 (30,275) (132,977) (1,611,193) 1,338,450 (1,641,468) 1,205,473 - - (1,641,468) 1,205,473 19,035,237 17,829,764 17,393,769 19,035,237

All operations are continuing.

There are no recognised gains or losses for the year other than those detailed above.

The accompanying notes form an integral part of these financial statements.

SOUTHWARK CATHEDRAL

Consolidated Balance Sheet as at 31[st] December 2023

Unrestricted fund £ 675,000 - 106,673 781,673 30,828 467,930 345,264 844,022 (455,184)	Restricted funds £ 27,647 - 9,000	Endowment funds £ 2,881,407 13,205,925 -
	36,647	16,087,332
	- 26,474 165,305	- - -
	191,779 -	- -
388,838 1,170,511 (214,291) (17,500) (75,000) 863,720 863,720 - - 863,720	191,779	-
	228,426 (43,434) - -	16,087,332 257,725 - -
	184,992	16,345,057
	- 184,992 -	- - 16,345,057
	184,992	16,345,057

The financial statements for Southwark Cathedral, (registered charity number 1200866), for the year ended 31 December 2023 were approved and authorised for issue by the Chapter on 24 April 2024.

The Very Reverend Dr Mark Oakley Dean

SOUTHWARK CATHEDRAL

Cathedral Balance Sheet as at 31[st] December 2023

Note Fixed assets Investments 17 Subsidiary undertaking 18 Tangible fixed assets: Property 1920 Plant and equipment Current assets Debtors 21 Cash at bank and in hand Liabilities due within one year Creditors 22 Net current assets Total assets less current liabilities Liabilities due after one year Inter-fund loan 25 NatWest bounce back loan 23 Dean's Fund loan 23 Net assets	Unrestricted fund £ 675,000 100,000 - 60,912	Restricted funds £ 27,647 - - 9,000 36,647 26,474 165,305 191,779 - 191,779 228,426 (43,434) - - 184,992	Endowment funds £ 2,881,407 - 13,205,925 - 16,087,332 - - - - - 16,087,332 257,725 - - 16,345,057	Total funds Total funds - restated 2023 2022 £ £ 3,584,054 6,145,874 100,000 100,000 13,205,925 12,300,000 69,912 49,160 16,959,891 18,595,034 467,842 222,399 316,453 442,289 784,295 664,688 (319,352) (165,797) 464,943 498,891 17,424,834 19,093,925 - - - - (75,000) (75,000) 17,349,834 19,018,925
	835,912 441,368 151,148 592,516 (319,352) 273,164 1,109,076 (214,291) - (75,000) 819,785

The 2022 subsidiary undertaking balance in fixed assets and the unrestricted fund balance have been restated by £16,312 to exclude the retained profits of the subsidiary undertaking.

The financial statements for Southwark Cathedral, (registered charity number 1200866), for the year ended 31 December 2023 were approved and authorised for issue by the Chapter on 24 April 2024.

The Very Reverend Dr Mark Oakley Dean

SOUTHWARK CATHEDRAL

Consolidated Statement of Cash Flows for the year ended 31st December 2023

Note
Net cash used in operating activities
28
Cash flows from investing activities:
Income from property
7
Income from investments (net of management costs)
7
Realisation of investments
17
Investment in property
17
Purchase of fixtures, fittings and equipment
20
Net cash provided by investing activities
Cash flows from financing activities:
Repayment of borrowing
23
Net cash used in financing acitivities
Net change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

2023
2022
£
£
(336,903)
(332,199)
229,550
173,371
24,348
21,821
100,000
-
(55,303)
-
(80,493)
(43,559)
218,102
151,633
(10,000)
10,000
(10,000)
10,000
(128,801)
(170,566)
639,370
809,936
510,569
639,370

Analysis of changes in net debt

Cash at bank and in hand and short term deposits Loans due within one year Loans due after one year	Opening balance £ 639,370 (10,000) (102,500) 526,870	Cash flows Closing balance £ £ (128,801) 510,569 - (10,000) 10,000 (92,500) (118,801) 408,069

SOUTHWARK CATHEDRAL

Notes to the Consolidated Financial Statements

1 Accounting Policies

Basis of preparation of the consolidated financial statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Cathedral and its subsidiary are a public benefit group for the purposes of FRS 102. The Cathedral also prepares its financial statements in accordance with the 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.

Going concern

The financial statements are prepared on a going concern basis, which assumes that the Cathedral will continue as a going concern for foreseeable future. Chapter has considered the Cathedral’s forecasts and projections for a period of 12 months from the approval of the financial statements and have concluded there is a reasonable expectation that the Cathedral has adequate resources to continue in operational existence for the foreseeable future. The Cathedral therefore continues to adopt the going concern basis in preparing its financial statements.

Group financial statements

The financial statements are consolidated to include the results of the Cathedral's subsidiary undertaking, Southwark Cathedral Enterprises Limited. They do not include the financial transactions, assets and liabilities of other charitable organisations which are not under the control of Chapter, details of which are provided in the notes to the financial statements; nor do they include the accounts of informal gatherings of Cathedral members or groups that owe their main affiliation to another body.

Third party and non-cash receipts and payments and donated assets and services

Where amounts are payable on behalf of the Cathedral by third parties, for example the Church Commissioners, these are disclosed under both income and expenditure in the consolidated statement of financial activities. Where assets and services are donated to the Cathedral the value is included in the appropriate classification of income and expenditure.

Income

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Legacies and donations

Legacies are recognised following probate and once there is sufficient evidence that receipt is probable and the amount of the legacy can be measured reliably. Where entitlement to a legacy exists but there is doubt as to its receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for income recognition are met.

All legacies and donations receivable are credited to the Consolidated Statement of Financial Activities and allocated to the relevant fund according to any restrictions placed upon their use.

Income arising from events and conferences

Income is recognised at the date at which the event or conference takes place. Any income received in advance is deferred to the date of the event or conference.

Grants receivable

Grants receivable which are subject to conditions or restrictions are credited to the restricted fund in the Consolidated Statement of Financial Activities as soon as they are received or become receivable.

If a grant has been received or is receivable and the related expenditure has not been incurred, then the grant is carried forward in restricted funds in the balance sheet. If a grant becomes repayable due to conditions of the grant not being satisfied a liability is recognised. If expenditure has been incurred prior to the receipt of the related grant, but with other conditions satisfied, then the grant receivable is credited to the Consolidated Statement of Financial Activities and carried forward as a debtor in the balance sheet.

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure on raising funds comprises the costs associated with fundraising and trading. Charitable expenditure comprises those costs incurred by the Cathedral in the delivery of its mission. Direct costs represent all costs which directly relate to a single activity. Support costs, including governance costs, are apportioned on an appropriate basis to estimated usage.

Pension scheme arrangements

Defined benefit scheme: Church Workers Pension Fund for lay staff Pensions for lay staff are provided by Church Workers Pension Fund. Lay staff are enrolled in the Pension Builder Classic Scheme which is classed as a defined benefit scheme. The contributions to the fund by the Cathedral are charged to the Consolidated Statement of Financial Activities as incurred, as the scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities relating to the Cathedral.

Defined benefit scheme: Church of England Funded Pensions Scheme for clergy Pensions and related benefits for the Dean, Sub Dean and Canon Precentor are provided by the Church of England Funded Pensions Scheme. This scheme operates as an occupational pension scheme and contributions, at a rate determined having regard to actuarial advice, are paid into a separate fund in the trusteeship of the Church of England Pensions Board. Benefits arising from pensionable service are provided from that fund. The contributions to the fund by the Cathedral are charged to the Consolidated Statement of Financial Activities as incurred, as the scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities relating to the Cathedral.

Taxation

Income is shown net of value added tax. Input value added tax is reclaimable on a percentage basis subject to partial exemption rules. All irrecoverable value added tax is included under the appropriate classification of expenditure. All recoverable income tax is included under the appropriate classification of income.

Cathedral and its inventory

No value is attributed to the Cathedral (together with the linked 1988 Chapter House and Millennium Buildings) in the financial statements and it is not included in the consolidated balance sheet. The Cathedral and the Millennium buildings, which are inalienable assets, are currently insured for a total sum of £51.49 million. No value is attributed to items included in the Cathedral inventory under Section 13(1) of the Care of Cathedrals Measure 1990 as they are considered to be of architectural, archaeological, artistic or historic interest and the cost of obtaining valuations would be onerous compared with the benefit derived by users of the accounts.

Tangible fixed assets

No depreciation is provided on the freehold properties owned by the Cathedral and carried on the balance sheet because the useful economic life of the properties is judged to be longer than 50 years, and Chapter's policy is to maintain and repair the properties to ensure that they retain their value in use to the Cathedral. In order to comply with FRS102, Chapter

has conducted an impairment review. Chapter considers that the net realisable value of the properties in the balance sheet is not less than their carrying value and expects to hold the properties for more than 50 years. In the opinion of Chapter, the assets are therefore not impaired and there is no requirement to adjust the value at which the properties are carried in the balance Sheet.

Expenditure on tangible fixed assets of £1,000 or more is stated in the balance sheet at cost less depreciation provided to write it off over its expected useful life as follows:

Computer equipment Three years Fixtures, fittings, furniture and equipment Ten years Other items Four years

Non-investment property

Properties owned by Chapter are included in the consolidated balance sheet at cost or valuation. The transitional provisions of Financial Reporting Standard 102 have been used to treat this valuation as a deemed cost. Where property is held on a “mixed-use” basis such that it is partly used by the Cathedral and partly rented out, the property is wholly held at depreciated cost as it would not be practicable reliably to estimate the value of the investment property element.

Investment property

Investment properties are carried at their open market value.

Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the Consolidated Statement of Financial Activities as ‘gains or losses on investments’ and are allocated to the appropriate fund.

Investments

The investments are held subject to the Trustees Act 2000 and are included in the consolidated balance sheet at market value.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets, other than those held at fair value through the Statement of Financial Activities, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the Statement of Financial Activities.

De-recognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Stocks

Stocks comprise shop goods for resale and are stated at the lower of cost and net realisable value.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

De-recognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Funds

Funds are classified between Endowment, Restricted and Unrestricted in accordance with the legal constraints on their use, and the consequent degree of flexibility which the Cathedral has on using the income that gave rise to the funds.

Endowment funds

These are funds where there is no power to convert capital into income. They are held permanently and cannot be utilised for other purposes, although the constituent assets may change over time.

Restricted funds

These are funds subject to specific conditions or trusts, imposed by the donor or the terms of a specific appeal, which are binding on Chapter.

Unrestricted funds

These are funds other than endowment and restricted funds.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Judgements and key sources of estimation uncertainty

In the application of the Cathedral’s accounting policies, Chapter is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the

revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Chapter uses the valuation performed by its independent valuers as the basis for fair value of its investment properties. Further details, including the carrying values and key assumptions used for the fair value measurement, are given in note 17 to the financial statements.

Chapter considers that building assets held within non-investment property should not be depreciated as the expected useful lives of these assets is estimated to exceed 50 years and the net realisable value of these assets exceeds the value at which they are carried in the balance sheet. However, Chapter considers whether these assets may be impaired on an annual basis.

2 Prior year Consolidated Statement of Financial Activities

Unrestricted fund £ Income from: Donations and legacies 440,275 Grants in support of mission - Charges and fees arising in course of mission 236,047 Trading and fundraising 762,797 Investments 175,572 Total income 1,614,691 Expenditure on: Raising funds 586,763 Charitable activities: Ministry 399,955 Cathedral and precincts upkeep 582,711 Education and outreach 74,868 Community, parish and congregation 93,973 Other expenditure 2,587 Total expenditure 1,740,857 Net income/(expenditure) (126,166) Gains/(losses) on revaluation of investments - Net income/(expenditure) after gains/(losses) on revaluation of investments (126,166) Transfers between funds - Net increase/(decrease) in funds (126,166) Reconciliation of funds: Total funds brought forward 1,153,476 Total funds carried forward 1,027,310	Restricted funds £ 91,288 574,291 17,515 - 19,620 702,714 34,538 311,281 307,201 45,366 11,139 - 709,525 (6,811) (3,371) (10,182) - (10,182) 254,480 244,298	Endowment Total funds restated funds 2022 £ £ - 531,563 - 574,291 - 253,562 - 762,797 - 195,192 - 2,317,405 - 621,301 - 711,236 - 889,912 - 120,234 - 105,112 - 2,587 - 2,450,382 - (132,977) 1,341,821 1,338,450 1,341,821 1,205,473 - - 1,341,821 1,205,473 16,421,808 17,829,764 17,763,629 19,035,237

On a review of the classification of income from various charities, it was concluded that income from Friends and Local Trusts it should be treated as grants in support of mission, rather than donations and legacies. The 2022 figures for these sources of income have therefore been restated.

3 Income from donations and legacies

Congregational collections and giving Donations and fundraising appeals Tax recoverable under Gift Aid Legacies and gifts in memory	Unrestricted fund Restricted funds Total 2023 Unrestricted fund Restricted funds Total restated 2022 £ £ £ £ £ £ 213,296 - 213,296 236,501 16,549 253,050 153,320 13,421 166,741 103,885 70,632 174,517 62,696 2,640 65,336 51,889 7,107 58,996 36,000 5,000 41,000 30,000 15,000 45,000 465,312 21,061 486,373 422,275 109,288 531,563

On a review of the classification of income from various charities, it was concluded that it should be treated as grants in support of mission, rather than donations and legacies. The 2022 figures for these sources of income have therefore been restated.

4 Income from grants in support of mission

Church Commissioners Southwark Cathedral Development Trust Friends of Southwark Cathedral Dean of Southwark's Fund Other revenue and capital grants	Unrestricted fund £ - - - - 71,899 71,899	Restricted funds £ 320,598 164,616 14,343 13,360 98,817 611,734	Total 2023 £ 320,598 164,616 14,343 13,360 170,716 683,633	Unrestricted fund £ - - - - 18,000 18,000	Restricted funds Total restated 2022 £ £ 256,543 256,543 118,200 118,200 11,300 11,300 1,640 1,640 168,608 186,608 556,291 574,291

On a review of the classification of income from various charities, it was concluded that income from Friends and Local Trusts should be treated as grants in support of mission, rather than donations and legacies. The 2022 figures for these sources of income have therefore been restated.

5 Income from charges and fees arising in the course of mission

Income from trading and fundraising Unrestricted fund £ Facility and other fees 213,676 Unrestricted fund £ Gross income of shop, refectory, events and meeting rooms 839,807 Vistor engagement activities 215,548 1,055,355	Unrestricted fund £ 213,676	activities Restricted funds £ 4,320 Restricted funds £ - 16,529 16,529	Restricted funds £ 4,320		Total 2023 £ 217,996 Total 2023 £ 839,807 232,077 1,071,884	Unrestricted fund £ 236,047 Unrestricted fund £ 762,797 -		Restricted funds Total 2022 £ £ 17,515 253,562 Restricted funds Total 2022 £ £ - 762,797 - - - 762,797

						762,797

6 Income from trading and fundraising activities

7 Income from investments

Unrestricted fund £ Income from investment property 229,550 Income from other investments 788 Interest receivable on short term deposits 3,409 233,747	Restricted funds £ - 20,151 - 20,151	Total 2023 £ 229,550 20,939 3,409 253,898	Unrestricted fund £ 173,371 765 1,436 175,572	Restricted funds Total 2022 £ £ - 173,371 19,620 20,385 - 1,436 19,620 195,192

8 Expenditure on raising funds

Costs of facilities for visitors Gross costs of shop, refectory and other activities Costs of appeals and fund raising Let property costs	Unrestricted fund £ 229,541 420,872 - 105,564 755,977	Restricted funds £ 62,562 - - 29,662 92,224	Total funds 2023 £ 292,103 420,872 - 135,226 848,201	Unrestricted fund £ 136,657 426,485 - 23,621 586,763	Restricted Total funds funds 2022 £ £ 34,219 170,876 - 426,485 319 319 - 23,621 34,538 621,301

9 Expenditure on ministry

Clergy stipends and working expenses Clergy housing costs Clergy support costs Services, music and congregational costs	Unrestricted fund £ 20,957 14,097 33,189 295,551 363,794	Restricted funds £ 142,373 20,957 74,251 114,532 352,113	Total funds 2023 £ 163,330 35,054 107,440 410,083 715,907	Unrestricted fund £ 14,850 22,324 83,672 279,108 399,954	Restricted Total funds funds 2022 £ £ 163,721 178,571 - 22,324 13,212 96,884 134,348 413,456 311,281 711,235

10 Expenditure on Cathedral and precincts upkeep

Major repairs and restoration projects Interior upkeep Cathedral insurance Precincts, security and gardens upkeep Vergers and property team	Unrestricted fund £ - 464,440 108,133 17,415 169,508 759,496	Restricted funds £ 93,436 27,645 - 2,677 127,792 251,550	Total funds 2023 £ 93,436 492,085 108,133 20,092 297,300 1,011,046	Unrestricted fund £ - 257,279 56,327 14,424 254,681 582,711	Restricted Total funds funds 2022 £ £ 170,540 170,540 98,012 355,291 - 56,327 - 14,424 38,649 293,330 307,201 889,912

11 Expenditure on education and outreach

Educational activities Charitable and other giving	Unrestricted fund £ 38,945 50,723 89,668	Restricted funds £ - 14,883 14,883	Total funds 2023 £ 38,945 65,606 104,551	Unrestricted fund £ 36,426 38,442 74,868	Restricted Total funds funds 2022 £ £ 11,139 47,565 34,227 72,669 45,366 120,234

12 Expenditure on community, parish and congregation

	Unrestricted	Restricted	Total funds	Unrestricted	Restricted	Total funds
	fund	funds	2023	fund	funds	2022
	£	£	£	£	£	£
Community, parish and
congregation	97,364	-	97,364	93,973	11,139	105,111

13 Expenditure – direct and support costs

Unrestricted2023	Restricted2023	Total 2023
Direct costs Support costs Total costs £ £ £ 563,958 192,018 755,976	Direct costs Support costs Total costs £ £ £ 68,843 23,381 92,224	Direct costs Support costs Total costs £ £ £ 632,802 215,399 848,201
	335,457 16,656 352,113 234,894 16,656 251,550 14,883 - 14,883 - - - - -	597,196 118,711 715,907 890,604 120,442 1,011,046 61,935 42,616 104,551 56,862 40,502 97,364 2,423 - 2,423
1,023,786 288,959 1,312,745	585,234 33,312 618,546	1,609,020 322,271 1,931,291
1,587,744 480,977 2,068,720	654,077 56,693 710,770	2,241,822 537,670 2,779,492

Included within support costs are staff and office costs associated with running the Cathedral (2022: unrestricted £269,957, restricted £111,388 and total £381,345).

Support costs are apportioned across raising funds and charitable activities largely on the basis of an estimate of the staff time involved. Governance costs included in support costs are £45,479 (2022: £48,703).

14 Clergy and staff costs

Salaries and stipends Social security costs Employer pension costs Diocese staff: HR and IT support	Restated 2023 2022 £ £ 1,031,386 901,158 92,696 79,405 61,990 69,535 19,403 36,075 1,205,475 1,086,173

The 2022 figures have been restated to include stipends and associated costs for the Dean, Sub Dean and Canon Precentor.

Employees with benefits over £60,000

The number of employees whose total employee benefits (excluding employer pension costs) amounted to more than £60,000 in the year was as follows:

		2023	2022
£70,001	to £80,000	1	1
Average	number of clergy and staff

The average number of clergy and staff by headcount over the year and by function was:

Clergy Music Cvergers Property Visitor Engagement Trading Subsidiary Operations and Support	2023 2023 2022 2022 Full-time Part-time Full-time Part-time 2 1 3 1 3 2 2 2 5 - 4 1 1 3 2 3 1 3 1 3 2 2 3 2 6 4 6 3 20 15 21 15

The figures above do not include stewards who are employed to assist with events.

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Cathedral. Key management personnel are members of the Chapter and senior management team. The total emoluments (comprising salaries, employer’s National Insurance contributions and employer’s pension contributions) of the remunerated key management personnel, were £236,944 (2022: 222,265). The personnel included in these figures are the Dean, Canon Precentor, Sub Dean, Chief Operating Officer, Chief Financial Officer (from June 2023) and Cathedral Accountant (to February 2023).

No elected or appointed member of Chapter received any remuneration or any other benefits from an employment with the Cathedral or a related entity, nor did they receive any reimbursement of expenses (2022: £nil).

The remuneration of ex officio Chapter members - the Dean, Sub Dean and Canon Precentor in 2023 – is included in the clergy and staff costs figures above and in the key management personnel figures. Their expenses were as follows.

Number receiving expenses Services (telephone, utilities etc) Travel Hospitality Resettlement allowances and removal Other	2023 2022 4 4 £ £ 4,721 1,996 3,328 1,048 549 19,553 8,871 - - 103 17,469 22,700

15 Pension costs

Lay staff

Southwark Cathedral participates in the Pension Builder Scheme section of Church Workers Pension Scheme (CWPF) for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of Southwark Cathedral and the other participating employers.

The Church Workers Pension Fund has a Defined Benefits Scheme and the Pension Builder Scheme, which is has two sections, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

Employees of Southwark Cathedral are enrolled in the Pension Builder Classic Scheme which is classed as a defined benefit scheme. The Cathedral contributes up to a matching 5% of the member's basic salary.

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

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 Financial Reporting Standard 102 because 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 Statement of Financial Assets in the year are contributions payable. The total charge included in these accounts is £37,819 (2022: £31,572 – restated to exclude pension contributions in respect of clergy).

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.

For the Pension Builder Classic section, the 2019 valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2024, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 5% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2023. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, Southwark Cathedral could become responsible for paying a share of the failed employer’s pension liabilities.

Clergy

Southwark Cathedral participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Responsible Bodies.

Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of Financial Reporting Standard (FRS) 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the Statement of Financial Activities in the year are contributions payable towards benefits and expenses accrued in that year, which were £24,171 in 2023 (2022: £37,963), plus any figures arising from contributions in respect of the Scheme’s deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £nil.

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

An average discount rate of 2.7% per annum;
RPI inflation of 3.6% pa (and pension increases consistent with this);
CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards;
Increase in pensionable stipends in line with CPIH;
Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates from 2013 in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 data of 0% (i.e. w2020 = 0%).

Following finalisation of the 31st December 2021 valuation, deficit contributions ceased with effect from 1st January 2023, since the Scheme was fully funded.

The deficit recovery contributions, as a percentage of pensionable stipends, under the recovery plan in force at each 31st December were as follows:

31st December 2021 7.1% payable from January 2021 to December 2022 31st December 2022 Nil 31st December 2023 Nil

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1st January 2023 onwards, the balance sheet liability as at 31st December 2022 was nil.

The legal structure of the scheme is such that if another Responsible Body fails, Southwark Cathedral could become responsible for paying a share of that failed Responsible Body’s pension liabilities.

16 Net income/(expenditure)

Net income/(expenditure) is stated after charging:

	2023	2022
	£	£
External audit fees for Cathedral and
trading subsidiary	25,450	23,850
Non-audit fees	745	700

17 Investments

Fair value at 1st January 2023 Additions Reclassification as non-investment property Net increase/(decrease) on revaluation Withdrawal of capital Fair value at 31st December 2023	Investment property £ 5,390,939 55,303 (905,925) (1,640,317) - 2,900,000	Listed investments Total £ £ 754,935 6,145,874 - 55,303 - (905,925) 29,119 (1,611,198) (100,000) (100,000) 684,054 3,584,054

The Cathedral’s investment properties were valued as at 13 February 2024 by Rapleys LLP in accordance with UKVS 4.3 of RICS Valuation – Professional Standards Global and UK January 2014 (revised April 2015). The valuer was a RICS Registered Valuer who has the necessary skills and knowledge to undertake the valuation competently.

The property valuation as at 31 December 2022 was carried out using the rentals obtained from the properties and a market return indice for central London.

18 Investment in subsidiary undertaking

The Cathedral owns 100,000 £1 ordinary shares representing the entire issued share capital of Southwark Cathedral Enterprises Limited, company number 02869292, registered in England and Wales. The company’s principal activities were the shop and online sales, events and meeting room hire, and the café. Its taxable profits are distributed to the Cathedral under Gift Aid.

Audited accounts are filed with the Registrar of Companies. A summary of the trading result and balance sheet are shown below:

Turnover Cost of sales Gross profit Grants received Administrative expenses Operating profit Charitable distribution to the Cathedral Net movement in reserves Accumulated profit brought forward Accumulated profit carried forward Share capital Funds Balance sheet Tangible fixed assets Current assets Creditors Net current assets Liabilities due after one year Net assets	2023 2022 £ £ 824,495 736,547 (137,719) (148,857) 686,776 587,690 15,312 26,250 (283,153) (277,628) 418,935 336,312 (391,312) (320,000) 27,623 16,312 16,312 - 43,935 16,312 100,000 100,000 143,935 116,312 £ £ 45,761 - 349,384 283,406 (233,710) (139,594) 161,435 143,812 (17,500) (27,500) 143,935 116,312

Advantage is taken of the exemption under FRS102 from disclosure of the intra-group transactions of the wholly owned subsidiary.

19 Tangible fixed assets: property

Cost or valuation At 1st January Reclassification from/(to) investment property At 31st December	2023 2022 £ £ 12,300,000 15,250,000 905,925 (2,950,000) 13,205,925 12,300,000

All of this property is held in the endowment fund.

During 2014, the Cathedral commissioned a valuation of the Cathedral’s property portfolio with Biscoe Craig Hall as at 1[st] January 2014. Non-investment property has been held at a deemed cost since this date as permitted by FRS102.

Montague Chambers, which has the Cathedral’s offices, is subject to a legal charge in favour of the Millennium Commission in connection with grant funding.

In accordance with an agreement signed and sealed on 29th March 1999, the Cathedral would receive the proceeds of the sale of properties in St George's Road and Temple West

Mews after repaying sums due to the Church Commissioners of £87,428 and £36,634 respectively.

In addition to the properties included above, the Cathedral owns and administers the following freehold properties which are not valued in the financial statements: The Cathedral and Collegiate Church of St. Saviour and St. Mary Overie, together with the 1988 Chapter House and Millennium Buildings which are considered to be inalienable assets and are held for the continuing use and mission of the Cathedral. The freehold of the All Hallows Church site is also owned by the Cathedral, but it is not valued in the financial statements as it is consecrated property which is excluded from accountability by virtue of section 10 of the Charities Act 2011.

In 2022, following a review of the intended use of Cathedral property, a number of properties were transferred to investment properties to reflect that they were held to earn rental income. In 2023, a property was reclassified from investment properties to noninvestment properties as it is now used to house a member of staff.

20 Tangible fixed assets: fixtures, fittings, furniture and equipment

Group Cost At 1st January 2023 Additions At 31st December 2023 Depreciation At 1st January 2023 Charge for the year At 31st December 2023 Net book value At 31st December 2023 At 31st December 2022	Computers and software £ 92,664 1,030 93,694 92,664 343 93,007 687 -	Nave chairs £ 153,358 - 153,358 153,358 - 153,358 - -	Shop fixtures and fittings £ - 50,845 50,845 - 5,084 5,084 45,761 -	Other assets Total £ £ 766,072 1,012,094 28,618 80,493 794,690 1,092,587 716,912 962,934 8,553 13,980 725,465 976,914 69,225 115,673 49,160 49,160

Cathedral

Debtors Cost At 1st January 2023 92,664 Additions 1,030 At 31st December 2023 93,694 Depreciation At 1st January 2023 92,664 Charge for the year 343 At 31st December 2023 93,007 Net book value At 31st December 2023 687 At 31st December 2022 - Trade debtors Amounts owed by group undertaking Other debtors and accrued income VAT Prepayments	92,664 1,030		153,358 - - - 153,358 - 153,358 - - - 153,358 - - - - - 2023 2022 £ £ 361,211 150,411 - - 122,360 73,637 - 13,074 10,833 9,337 494,404 246,459 Group	- -		740,383 986,405 28,618 29,648 769,001 1,016,053 691,223 937,245 8,553 8,896 699,776 946,141 69,225 69,912 49,160 49,160 2023 2022 £ £ 244,707 91,349 97,878 35,002 114,424 73,637 - 13,074 10,833 9,337 467,842 222,399 Cathedral
	93,694			-
	92,664 343			- -
	93,007			-
	687			-
	-			-

21 Debtors

22 Creditors: amounts falling due within one year

Trade creditors Taxation and social security Accruals Deferred income Bounce Back Loan Other creditors	2023 2022 £ £ 157,534 118,361 71,482 56,001 123,142 61,216 56,551 - 10,000 10,000 36,475 24,811 455,184 270,389 Group	2023 2022 £ £ 146,990 85,789 29,574 21,844 106,313 33,353 - - - - 36,475 24,811 319,352 165,797 Cathedral

The movement in deferred income is:

Brought forward Added in the year Carried forward	2023 2022 £ £ - - 56,551 - 56,551 - Group	2023 2022 £ £ - - - - - - Cathedral

23 Creditors: amounts falling due after more than one year

2023 2022 £ £ Dean of Southwark's Fund loan 75,000 75,000 Bounce Back Loan 17,500 27,500 92,500 102,500 These loans are repayable as shown below: In one year or less 10,000 10,000 In more than one year, but not more than two years 7,500 10,000 In more than two years, but not more than five years - 7,500 In five years or more 75,000 75,000 92,500 102,500 Group	2023 2022 £ £ 75,000 75,000 - - 75,000 75,000 - - - - - - 75,000 75,000 75,000 75,000 Cathedral

Southwark Cathedral has a loan with the Dean of Southwark's Fund payable in three equal instalments on the fifth, sixth and seventh anniversary of draw down.

Southwark Cathedral Enterprises Limited has a Bounce Back Loan with National Westminster Bank plc of £50,000 with a six-year term and an interest rate of 2.5% which was not charged in the first year.

24 Operating leases

At 31[st] December 2023, the Cathedral was committed to making the following total minimum lease payments under non-cancellable operating leases on office equipment.

Payments due within one year Payments due between one and two years Payments due between two and five years	2023 2022 £ £ 14,315 19,897 14,315 14,315 18,117 32,646 46,747 66,858

At 31[st] December 2023, the Cathedral was due the following total minimum lease payments under non-cancellable operating leases on property.

Payments due within one year Payments due between one and two years Payments due between two and five years	2023 2022 £ £ 174,510 194,018 59,985 88,051 20,471 59,241 254,966 341,310

25 Analysis of group net assets between funds

At 31[st] December 2023:

At 31stDecember 2023:
Tangible fixed assets Investments Current assets Current liabilities Liabilities due after one year Inter-fund loan Total net assets	Unrestricted fund £ 106,673 675,000 844,022 (455,184) (92,500) (214,292) 863,719	Restricted funds £ 9,000 27,647 191,779 - - (43,433)	Endowment Total funds 2023 £ £ 13,205,925 13,321,598 2,881,407 3,584,054 - 1,035,801 - (455,184) - (92,500) 257,725 - 16,345,057 17,393,769
		184,993

At 31[st] December 2022:

Tangible fixed assets Investments Current assets Current liabilities Liabilities due after one year Inter-fund loan Total net assets	Unrestricted fund £ 49,160 970,000 672,650 (237,047) (102,500) (324,953) 1,027,310	Restricted funds £ - 25,273 240,442 (33,342) - 11,925	Endowment Total funds 2022 £ £ 12,300,000 12,349,160 5,150,601 6,145,874 - 913,092 - (270,389) - (102,500) 313,028 - 17,763,629 19,035,237
		244,298

The inter-fund loan represents the accumulated balance of endowment fund assets which has been used to support unrestricted and restricted fund programmes. The reduction in the loan from £313,028 to £257,725 between 2022 and 2023 reflects the refurbishment work carried out on one of the endowment fund properties using unrestricted funds.

26 Consolidated statement of funds

Unrestricted funds Restricted funds Music Girls choir Choristers Major repairs and restoration projects Other property Church Commissioners: sustainability Church Commissioners: other Masvingo project Other general Total restricted Endowment funds Buildings Property Choirs Total endowment Total funds	Balance at 1st January 2023 Income Expenditure Revaluation Transfers Balance at 31st December 2023 £ £ £ £ £ £ 1,027,310 2,075,422 (2,068,721) (545,556) 375,265 863,720
	- 126,244 (106,244) - - 20,000 77,944 5,250 (899) - - 82,295 53,006 14,129 (2,209) - - 64,926 (10,292) 147,250 (110,304) - (24,709) 1,945 - 25,500 (16,500) 2,379 - 11,379 - 106,356 (106,356) - - - - 178,474 (178,474) - - - - 13,961 (12,211) - - 1,750 123,640 34,488 (155,431) - - 2,697
	244,298 651,652 (688,628) 2,379 (24,709) 184,992
	16,720,939 - - (1,094,761) (350,556) 15,275,622 386,408 - - 2,902 - 389,310 656,282 - - 23,843 - 680,125
	17,763,629 - - (1,068,016) (350,556) 16,345,057
	19,035,237 2,727,075 (2,757,349) (1,611,193) - 17,393,769

Transfers between funds

The transfer of £350,556 from the endowment fund to the unrestricted fund arises because a revaluation in 2022 of two investment properties which sit with the unrestricted fund was added to the endowment fund.

A transfer of £24,709 between the restricted fund for major repairs and restoration projects arises because costs relating the Harvard Chapel project which have been covered by a restricted grant, were charged in 2022 to the unrestricted fund.

Purposes of restricted funds

Music

This fund is for grants and donations to the Cathedral for its music. In 2023, it includes support from the Dame Susan Morden Charity, Benefact Trust, St Olave’s and St Saviour’s School Foundation and Church Commissioners.

Girls choir and choristers

There two funds are used to finance choir tours and other choir activities. Monies raised from donations and concerts and other fundraising events are accumulated in these funds and expended as necessary.

Major repairs and restoration projects

This fund is for grants and donations for major repair work and for restoration projects. In 2023, this principally included funding from the Southwark Cathedral Development Trust for

urgent work on the Queen Elizabeth II room and All Hallows Church, and project work on the Harvard Chapel and Conservation Management Plan. The Headley Trust’s support for restoration of the medieval bosses is included in this fund.

Church Commissioners: sustainability

This fund is for grants from the Church Commissioners’ Cathedrals Sustainability Fund in support of various posts which contribute to the long-term sustainability of the Cathedral.

Church Commissioners: other

This fund is from grants made under Cathedral Measures for clergy and lay staff.

Masvingo project

This fund is for donations and grants for the Cathedral’s work with the Diocese of Masvingo in Zimbabwe.

Other general

This is for donations and grants given for other purposes.

Purposes of endowment funds

Buildings

This represents the value of many of the properties owned by the Cathedral. It was established in 1996 when the Cathedral brought the value of its properties (excluding the Cathedral church and ancillary buildings within the line of ecclesiastical exemption) onto its balance sheet to comply with the requirements of the original Guidelines on Accounting and Reporting by English Anglican Cathedrals. The value of this fund fell to £15,275,622 as at 31[st] December 2023, principally because of a revaluation of the investment properties in the fund. The remainder of the fall in the value arises because an increase in 2022 in the value of two properties associated with the unrestricted fund was ascribed to the endowment fund and this has been adjusted for by a transfer between funds in 2023.

Property

The proceeds of sale of properties formerly belonging to the Cathedral is part of the endowment fund and can be used to acquire land and to improve or develop property other than the Cathedral buildings. Endowment monies can only be expended on Cathedral buildings with the consent of the Church Commissioners and subject to agreement between the Commissioners and the Cathedral that such monies will be repaid.

Choirs

Income from this fund jointly supports the boys and girls choirs and the music of the Cathedral.

27 Related charities

The following entities are not controlled by the Cathedral but exist wholly for the benefit of the Cathedral: The Friends of Southwark Cathedral, Southwark Cathedral Development Trust, The Dean of Southwark’s Fund and the Southwark Cathedral Education Trust.

The Cathedral received grants from these charities as follows:

	2023	2022
	£	£
Southwark Cathedral Development Trust	164,616	118,200
Friends of Southwark Cathedral	14,343	11,300
Dean of Southwark's Fund	13,360	1,640

In addition, the Cathedral made a grant of £20,000 (2022: £20,000) to The Friends of Southwark Cathedral and received £20,000 (2022: £20,000) for rent and services from the charity.

28 Notes to the Consolidated Statement of Cash Flows

Reconciliation of consolidated net income/(expenditure) to net cash flow from operating activities

Analysis of cash and cash equivalents Net income/(expenditure) for the year (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Income from property and investments (Increase)/decrease in stock Increase in debtors Increase in creditors Other non-cash movements Net cash used in operating acitivities Cash at bank and in hand and short term deposits	2023 2022 £ £ (30,275) (132,977)
	13,980 45,176 (253,898) (195,192) (3,565) 5,652 (247,945) (99,886) 184,795 45,028 5 - (336,903) (332,199) 2023 2022 £ £ 510,569 639,370

SOUTHWARK CATHEDRAL

CONTENTS

Annual Report

ANNUAL REPORT

OBJECTIVES AND ACTIVITIES

Charitable objects

Mission Statement

ACHIEVEMENTS AND PERFORMANCE

Object 1(a) - to advance the Christian religion in accordance with the faith and practice of the Church of England, in particular by furthering the mission of the Church of England;

Worship and Liturgy

Parish and community

Music

Visitor Engagement

Education

Object 1(b); to care for and conserve the fabric and structure of the Cathedral Church building;

Conservation work

Sustainability

Estate management

FINANCIAL REVIEW

Reserves policy

TRUSTEE PLANS FOR 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance

Trustee Recruitment and Training

on the Board of Trustees.

Chapter Committees

Connected Organisations

Staffing and Management

Our Volunteers

Safeguarding

Fundraising

Risk Management, Reporting and Monitoring

Primary Risks to the Cathedral

Financial Risks

Identified mitigations:

Safeguarding risks:

Identified mitigations:

Fabric and Building risks:

Identified mitigations:

Governance, Legal and Strategic risks:

Identified mitigations:

Data protection and IT risks:

Identified mitigation:

People risks:

Identified mitigations:

REFERENCE AND ADMINISTRATIVE DETAILS

Full legal name and address of Charity

Administrative Body

Statutory office holders

The Finance Committee

The Audit and Risk Committee

The Fabric Advisory Committee

The Nominations committee

Bankers

Surveyors

Insurers

Investment Managers

STATEMENT OF RESPONSIBILITIES OF THE CHAPTER

INDEPENDENT AUDITOR’S REPORT TO THE CHAPTER MEMBERS OF SOUTHWARK CATHEDRAL

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Matters on which we are required to report by exception

Responsibilities of Chapter members

Auditor’s Responsibilities for the audit of the financial statements

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Use of our report

SOUTHWARK CATHEDRAL

Consolidated Statement of Financial Activities for the year ended 31[st] December 2023

SOUTHWARK CATHEDRAL

Consolidated Balance Sheet as at 31[st] December 2023

SOUTHWARK CATHEDRAL

Cathedral Balance Sheet as at 31[st] December 2023

SOUTHWARK CATHEDRAL

Consolidated Statement of Cash Flows for the year ended 31st December 2023

Analysis of changes in net debt

SOUTHWARK CATHEDRAL

Notes to the Consolidated Financial Statements