2024-12-31-accounts

SOUTHWARK CATHEDRAL

Annual Report and Consolidated Financial Statements for the year ended 31[st] December 2024

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

Registered charity number: 1200866

CONTENTS

Annual Report
Introduction from the Dean	3
Objectives and Activities	4
Achievements and Performance	5
Financial Review	13
Trustee Plans for 2024	14
Structure, Governance and Management	16
Reference and Administrative Details	25
Statement of the Responsibilities of the Chapter	28
Independent Auditor’s Report	29
Consolidated Statement of Financial Activities	33
Consolidated Balance Sheet	34
Cathedral Balance Sheet	35
Consolidated Statement of Cash Flows	36
Notes to the Consolidated Financial Statements	37

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Introduction from the Dean

2024 was a year to take stock and refresh our Vision at Southwark Cathedral.

Having been installed as Dean at the end of the previous year, 2024 presented an opportunity to build upon the foundations set by my predecessor, to whom I’m enormously grateful, and to shape the Cathedral’s strategy for the next five years.

Making Space for Love: with Heart, Mind, and Soul was the result. This five-year plan is a discernment of our vocation. It is an attempt to build upon Southwark’s great history and spiritual heritage, as well as discern our current needs and huge potential. I was especially keen that, at its heart, lies worship, hospitality, learning, and social justice. I was also keen that sustainability is central - not just in the sense of our important commitments to net zero – but also as the longer-term financial viability of the Cathedral.

2024 not only marked my first year as Dean at Southwark, it also saw the appointment of a new Chief Operating Officer in Paul Smith and a new Chief Finance Officer in Ted Halshaw. Together, alongside the rest of the Senior Leadership Team, we immediately set about drafting an Operational Plan to translate the Vision into practicalities. This internal document, by giving timescale and assigning budget, will help us deliver on our commitments and, by doing so, serve our community better. Our values hold us to account: kindness, integrity, justice and courage.

As we have seen in recent months, the financial health of Cathedrals is something for which the Church of England is currently concerned. This being said, we achieved an exceptional surplus of £324k driven by legacy and donations income. This has allowed us to create a designated fund to help bring the operational plan and Vision to life.

Our commitments are ambitious but realistic. We are working to create a Cathedral which is a spiritual resource and beacon of hope for those we serve, in our present time but also for those who come after us.

We have worked hard in 2024 to improve our structures, our processes and our compliance. These are there to ensure we are a safe, diverse, fair, and transparent community, seeking to make space for love as we follow the way of Jesus Christ.

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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: Making Space for Love

Rooted in Christian faith, to be a place of hospitality, exploration, imagination, and kindness. We will be a Cathedral that rejoices in making space for all people to flourish and grow, in heart, mind, and soul.

The pathways in which we will make space for love of God and neighbour are:

Heart: To keep the heart healthy in London by a commitment to social justice, upholding the human dignity of all people and of every age.

Mind: To help people both live faithfully and think critically, being a place of learning and discovery.

Soul: To be a school for the soul, a place for enrichment of the inner life through prayer, our Cathedral building, the arts, and community

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ACHIEVEMENTS AND PERFORMANCE

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.

Our worshipping community consists of approximately 440 individuals, including 45 children (aged 0-10), 40 young people (11-17), and 255 adults, the majority of whom attend one or more of the principal Sunday services – Eucharist at 9.00am, Choral Eucharist at 11.00am and Choral Evensong at 3.00pm, as well as Compline and Benediction on the fourth Sunday of the month at 6.00pm. During the week, from Monday to Saturday, we offer a rhythm of daily services including Morning Prayer, Midday Prayer (excluding Saturdays), Eucharist and Choral Evensong / Evening Prayer. Tuesdays also feature a 9.30am Eucharist and on Fridays the Litany of Reconciliation is prayed during Midday Prayer. These services are attended by smaller congregations who are nevertheless an integral part of the Cathedral community. This weekly round is supplemented by seasonal liturgies around important festivals and principal feasts in the Church year.

Our online congregations are increasingly important to us. The foundation of our online offering is the streaming of Morning Prayer each day and a weekly Choral Eucharist and evening compline on Sundays. These are streamed via the Cathedral’s YouTube channel and Facebook page. Due to the availability of consistent statistics, the following figures refer to our community on YouTube only. Between 1 January and 31 December 2024, our YouTube channel gained 409 new subscribers and amassed 87,977 total views across all content. Morning Prayer is usually the only service streamed Monday-Saturday and our average daily viewership was 31 people in 2024. Looking at Sundays across the year, our average number of views across all services was 484. There were higher figures across both weekdays and Sundays in March and December, in line with increased activity during Lent and Advent respectively. We are grateful to our vergers, who manage weekday streaming with their customary efficiency, as well as our team of volunteers who assist with the streaming of Sunday worship and occasional "specials".

In addition to our regular worshippers, our community is further enriched by visitors. These include curious tourists, educational groups, visiting organisations and individuals seeking sanctuary. Our four daily weekday services are offered in the context of a historic building that is free to enter and open to all, reflecting our commitment to public benefit. Visitors are also welcome to enter the Cathedral at other times for private prayer, to light a candle, or to seek guidance and conversation with one of our Day Chaplains.

In 2024, major services included the Consecration of the new Bishop of Woolwich, and the Installation of the new Archdeacon of Lewisham & Greenwich. The Cathedral continued to support the ministry of the Bishop and the wider Diocese, with the annual rhythm of Ordinations, Confirmations and Archdeaconry services, and a joyful celebration of the 30[th] anniversary of the ordination of women as priests in the Church of England, 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

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Sheriff’s Annual Service of Thanksgiving, when the Cathedral welcomed the senior judiciary and Lieutenancy. Our delivery 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 Diocesan Evensong, which filled the nave with choirs from churches across the Diocese under the direction of the Cathedral’s Director of Music, and a new ecumenical celebration in which the Cathedral Choir was joined by the choir of St George’s Roman Catholic Cathedral for a service to mark the week of prayer for Christian Unity. In July, we hosted the Church Commissioners and Charity Commission for Choral Evensong at the end of a conference day in the Cathedral - a service that showcased Southwark music at its most impressive in the service of the wider Church.

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 2024, the total membership on the Electoral Roll stood at 476 - an increase on the previous year. The Electoral Roll will be fully revised in 2025. Those living in the Cathedral parish and those who worship with us regularly are supported in their life of faith through baptism, confirmation, marriage and funerals. There was a dip in the number of marriages during the year, although there are a healthy number of bookings for 2025. We were delighted to celebrate an increased number of adult baptisms in the autumn and look forward to them joining the Confirmation group in Spring 2025.

The Sub Dean coordinates ministry to the sick and housebound, assisted by our Commissioned Lay Pastoral Minister and one of our Honorary Minor Canons. During the year, we launched the Living Faithfully programme, supporting learning and faith enrichment for our community, which has been well received. Primary aged children are admitted to Holy Communion in November, and we have noted a steady increase in the number of young people participating in our Sunday activities.

We continue to work closely with the Norwegian Church in Rotherhithe and St George’s Cathedral, Southwark, together with Southbank Churches. These relationships flourish in parallel with our close links with Rouen Cathedral, France and Bergen Cathedral, Norway. During the year, the Dean visited local mosques and synagogues together with a congregational visit to the Neasden Temple. The Cathedral hosted an Interfaith gathering in the autumn, in partnership with Living Bankside.

We have a particularly close relationship with the ROBES homeless charity. The charity’s offices are on Cathedral site. We participate in staffing the Christchurch night shelter for three months each year and hosting the fundraising SleepOut in November.

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Music

The Cathedral 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. With no choir school, the Department are free to engage with choristers from a wide variety of schools across south London and beyond, so that our choirs more truly reflect the diverse community we serve. Currently, we work with over 80 children on a weekly basis and approximately 160 chorister and probationer parents representing local communities. The pattern of regular visits to schools to offer workshops, lead assemblies and run auditions has continued despite the untimely death of Director of Music Ian Keatley in August 2024, and the Music Department remain committed being part of an inclusive and outward-facing Cathedral community.

Both Choirs performed at Summer and Christmas concerts and at some particularly significant Evensongs: with the choir of St George’s Roman Catholic Cathedral to mark the week of prayer for Christian Unity; with choirs from across the Diocese, filling the nave in June; for the Church Commissioners in July, and for the Cathedral Music Trust (in the presence of HRH Duchess of Gloucester) in November, as well as joining with musicians from across London to give thanks for the life of Ian Keatley on the eve of Advent. In addition, a series of concerts have combined organ or solo voice (showcasing our Lay Clerks) with appropriate readings, so that word and music interpret one another

The Cathedral community are very thankful for all that Acting Director of Music Simon Hogan, Assistant Organist James Gough and Merbecke Director Emily Elias have done, which has kept the work of the Department going and the choirs flourishing in a difficult season. With the appointment of a new Director of Music, Helen Smee, who will join the Cathedral at the end of the summer 2025, there is much to look forward to, including the celebration of the Silver Jubilee of the Girls’ Choir, the relaunching of the Old Choristers Association, and a Choir Tour for the girls in October 2025.

Education

In 2024, the Cathedral continued to deliver its ministry of education through the Southwark Cathedral Learning Centre. Established in 1996, the Learning Centre is operated by the Southwark Cathedral Education Trust (SCET), an independent charity led by a board of seven Learning Centre Trustees (LCTs) and chaired by the Canon Chancellor. The board includes the Dean, a representative from Chapter, the Southwark Diocesan Director of Education and members of the Cathedral community with a background in education. The Learning Centre employs one part-time, permanent Learning Centre Manager, line-managed by the Canon Chancellor. In December 2024, the Trust also appointed a part-time, temporary administrator to provide administrative support to the Centre, as activity has returned to pre-pandemic levels. The Learning Centre also has a skilled team of 12 active volunteers who support the delivery of school visits managed by the Learning Centre Manager.

The Learning Centre primarily works with primary and secondary schools from the faith, community and independent sector, providing high quality Learning Outside the Classroom (LOtC) experiences at the Cathedral. Students visiting the Cathedral engage in a rich programme of curriculum-linked trails and workshops supporting Religious Education, History, Art & Design and Personal Social & Health Education, Philosophy & Ethics and

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Citizenship for students from Early Years through to KS5. The programme aims to encourage a deeper sympathy for the Christian faith and appreciation of the Church’s contribution to culture and community.

2024 saw 4551 instances of student participation in education sessions at the Cathedral compared to 3128 in 2023. The Learning Centre’s operational activity across 2024 included:

• Managing, delivering and evaluating an annual programme of thematic workshops and trails running on Tues-Friday weekly in term-time;

• A year-round programme of teacher training in partnership with the Southwark Diocesan Board of Education (SDBE);

• Easter and summer holiday family learning ‘pop-ups’ in partnership with the Old Operating Theatre and the Southwark Heritage Centre;

• Continued partnership with the SDBE to deliver the popular Journey to the Manger Christmas programme for Diocesan primary schools;

• A five-day special programme in October during Luke Jerram’s Gaia exhibition, with 235 students engaging with climate justice issues;

• Continued development of our popular ‘hot seat’ programme, with students posing questions to a member of our clergy supporting young people to explore “big questions” of life, ethics and meaning;

• Developing a new bursary scheme for local Southwark borough schools, with high proportions of students eligible for Pupil Premium to come for a free visit enabled via a grant from the St Olave’s Foundation Fund;

• Supporting core work with foundation schools through delivery of educational tours for students coming for their annual services and concerts;

• Supporting the Sub-Dean with some of his work in resourcing and advising on ministry to families and young people in the Cathedral community;

• Ongoing support and development for the dedicated Learning Centre volunteers through training, external visits and regular communications.

Strategic plans for the Learning Centre for 2025 are focused on increasing capacity whilst continuing to resource the Centre sustainably and strengthening the existing relationship with the Cathedral with improved integration.

Conservation work

The Archaeology Chamber in Lancelot’s Link is a popular visitor attraction and a window into the history of the site of the Cathedral. It is an open display and therefore susceptible to dust and debris build-up which requires periodic cleaning. The Friends of Southwark Cathedral supported the initial gentle conservation clean of the chamber by the experienced Conservation Housekeeping service, Virtu. The careful clean and tidy was executed in April 2024 and returned it to good presentational order, enabling the conservators to check the condition of the archaeology. A further brief is being now being compiled to preserve the chamber’s condition and re-present the visitor experience.

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As the demolition works of Minerva House commenced in earnest, the Cathedral asked the York Glaziers Trust to undertake an initial inspection of the West End Window by Henry Holiday (1839-1927). This served to confirm the relatively good condition of the stained glass and to reassure the Cathedral of the structural stability of the window. Longer-term considerations for conservation will be scheduled to align with the wider conservation programme for all stained-glass in the Cathedral.

The Cathedral continues to welcome the City and Guilds Art School BA students into the building each year to carry-out their practical curriculum. In 2024-25, they have started monitoring the micro-environment and subsequent condition of the monument to John Gower, the wooden effigy of a knight, the Pugin Tabernacle and the Canon’s Doorway. There is also an MA student carrying out research on the John Trehearne monument that has revealed new information about previous paint schemes. The results of the students’ research was presented to the Cathedral in a seminar on Monday 24[th] March 2025.

The Property Department continues to run a Conservation Housekeeping Week each year, during which a team of volunteers are taught by a Conservator how to clean an element of the heritage fabric. In 2024, the team grew to encompass some of the City & Guilds students and with the help of the vergers and property teams, they have managed to be responsive throughout the year. This has allowed further cleaning of areas around the Archaeology Chamber, Victorian infrastructure in the Cathedral and prior to conditions surveys at highlevel.

There are further works required to the bell-frame before the Cathedral clock can be repaired in the tower. This year saw correspondence with CFCE and applications for further works being submitted.

The Conservation Management Plan was drawn together in a comprehensive document in 2024 and continues to be appraised and reviewed to best represent the conservation areas of significance at Southwark Cathedral. The aspiration is to publish the document for use in 2025.

Sustainability

The Cathedral continues to work closely with the Diocese in delivering its Net Zero Carbon targets for 2030 (Diocese target – 2035). We have received an MEP consultant report this year, commissioned by Better Bankside as part of the Cathedral’s involvement in the Southwark Climate Collective Energy Audit, and await a Stage 2 Energy Assessment and Carbon Emissions Review report from the Church of England’s Commissioners.

We are using the data from these sources to build a detailed aspirational carbon-reduction plan towards Net Zero Carbon emissions for the Cathedral Precinct.

In the meantime, the Cathedral has made ambitious pledges on which we are now acting. These include:

• A commitment to Green Electricity and Gas energy supply (with no carbon offsets) to 2026;

• A site-wide policy of replacing all bulbs with LED. There are now several ancillary staff areas that have recently been refurbished with LED fittings as well as public areas, including the café, shop and Learning Centre;

• The future supply of low-carbon/renewables energy source for the heating and lighting of the Cathedral is a real ambition, albeit a complex challenge. To assist with this, the Cathedral is tendering for the services of a MEP and Lighting consultant;

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• Stage 1 of the Harvard Chapel access and re-ordering project continues with the requests for necessary permissions. This project proposes the installation of under floor heating with air source heat pump.

The Sustainability Group has continued to meet on a monthly basis throughout 2024/5 and work with our companion Eco Group that has been established within the congregation. The focus this year has been to embed sustainable behaviour across Cathedral communities and to develop a Cathedral-wide culture for the care of God’s creation. The Cathedral was awarded A Rocha Eco Church Silver Award in April 2024 and is now working towards achieving Gold status under the recently revised criteria. The Cathedral has progressed with a ban on single-use plastics on site, a decrease in the use of printed paper and an increase in recycled products being supplied to the Cathedral. In tandem, we have carried out an inhouse waste audit and have increased the lines of waste recycling across the site. Staff training continues to encourage positive behaviour change - the Sustainability Group undertook Carbon Literacy Training in March 2024.

The Cathedral promotes environmental resilience in the local community and is a designated Cool Space in London in the Summer providing shelter from the extreme heat. It is important that our planting and landscaping continue to support this, and we have added two large water-butts to the site this year to assist with watering in the dry seasons. The Cathedral Grounds are managed to increase biodiversity and protect existing eco-systems -the Friends of Southwark Cathedral have generously assisted with these initiatives.

Last summer, a group of volunteers, both Cathedral and Bankside Open Space Trust, collaborated to enrich the landscape in the Millennium Courtyard, coinciding with the arrival of Luke Jerram’s Gaia installation at the Cathedral. This took the form of a series of wooden planters, planted up with a range of insect-friendly, globe-shaped blooms, which will continue to provide a colourful welcome for all. This project was supported by the local authority’s Cleaner, Greener, Safer funding initiative.

The Cathedral hosted ‘Climate Justice Fortnight’ under Gaia in October. The Sustainability Group worked closely with the Cathedral’s Visitor Engagement team to deliver this. The Cathedral partnered with Christian Aid for the fortnight, who provided relevant distribution materials and delivered two free entry workshops on climate justice themes. A ‘Green Fair’ was held, at which various stallholders representing local organisations and charities with a ‘green’ focus were invited to engage with the public visiting the Gaia installation.

Looking ahead to 2025, we are continuing to raise the profile of environmental sustainability in different areas of Cathedral life.

Estate management

In 2024, the Cathedral established a Property Strategy Group comprised of staff, nonexecutives and expert volunteers to determine options for the future of the Cathedral’s property portfolio for presentation to Chapter. Much work has been achieved by this group in understanding the Cathedral’s legal and financial interests in our properties. A Property Assets and Liabilities Register has been established, in which the relevant property information is recorded and regularly updated. This work will be extended to include further detail to the Cathedral precinct and its perimeter in 2025.

The Property Department benefitted from the creation of a new role – the Estates Manager. This allowed the team to execute a Health & Safety audit across the tenanted residential and commercial property portfolio. The status of the portfolio in relation to statutory regulations and other landlord obligations is reported monthly to Chapter.

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The current Cathedral Architect’s contract term expired in 2024, and the Cathedral spent a great deal of time and thought considering what we required to help us manage the estate over the next 5 years. A thorough selection and interview process was held for a Cathedral Architect and the unanimous decision to re-appoint Kelley Christ was made in October 2024. A Masterplan and 7-Year Strategic Plan is now being developed for the Cathedral precinct.

Early in 2024, the Cathedral received the full reports of the residential conditions surveys that we commissioned in 2023, and these have been used to develop a programme of works across the next 5 years. There is a significant quantity of remedial and fabric upgrade works required across the portfolio after a long period of austerity.

The challenge of finding a workable solution for the Cathedral at All Hallows Church Hall remains. After the building was illegally occupied by squatters in August 2024, an immediate and co-ordinated response with the Diocese resulted in an efficient legal process. The squatters were evicted in October 2024 and the Cathedral has put measures in place to prevent repeat illegal occupancy. The Property Strategy Group has worked hard on behalf of the Cathedral to find a tenant who might be prepared to fund the significant remedial repairs to the building. To date there are interested parties but no commitment and until a solution is agreed, the Cathedral remains responsible for ongoing costs. After 12-months of exploring the Cathedral’s options for the site, the possibility of final closure of the building and returning it to the Diocese is now being considered.

Eco Church continues to worship at All Hallows in the community garden. The garden is now managed by the Diocese and the Local Authority with the assistance of Eco Church and the community gardening group.

The Property Department continues to respond to the upgrade of Health & Safety policies, processes and emergency procedures on site. An entirely new Fire Alarm was installed in the Cathedral and across the precinct in 2024. A significant investment in Emergency Lighting is required and the installation of LED lights, improved CCTV equipment and secure access technology is planned for 2025.

The Access strategy remains a priority for the Cathedral and much thinking has taken place in 2024 about impactful solutions to the challenges of the site. The preparatory work for a ramped entrance to the Harvard Chapel has progressed and we are reliant on permissions being granted before we continue with the work. We hope Stage 1 will commence in 2025. Other urgent projects being planned for 2025 include:

• Perimeter signage upgrade

• Feasibility Study for Southwest Entrance, including:

• Perimeter Public Realm project

The Cathedral has met weekly with the contractors of the development site opposite the Northwest end of the precinct - GPE’s Minerva House site. We have worked closely with the Stage 1 Main Contractor, Morrisroe, as they partially demolish the building, to limit the impact that this has had on the daily business and operations of the Cathedral. A Party Wall Agreement has now been signed between GPE and the Cathedral in relation to works taking place in the basement and neighbourly matters.

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Visitor Engagement

Our Visitor Engagement (VE) team has expanded this year as we took on six new Welcome Hosts, kindly supported by a grant from the Cathedral Sustainability Fund. These Hosts, supported by our volunteer welcomers and stewards, help ensure the Cathedral offers a world-class welcome and farewell to all who visit, as well as encouraging visitors to donate to the Cathedral.

In October, we hosted Luke Jerram’s Gaia which was the centrepiece of our Climate Justice Fortnight of events. The Cathedral welcomed 23,000 visitors during this fortnight, and we were delighted to partner with Christian Aid as we highlighted how the climate crisis disproportionately impacts the Global South.

Visitor figures for 2024 increased by 18% on 2023, which is encouraging and something for the Cathedral to build on in 2025 and onwards with the new strategic plan.

The VE team delivered over 80 diverse events throughout 2024, including talks, theatre, concerts, and comedy nights. Some of the highlights were:

• An evening of history talks raising money for the charity Papyrus;

• An evening with social-media sensation Bryony Gordon who tackled the menopause, binge eating, addiction and mental illness;

• Six Queens: The Peril and Passion in the Court of Henry VIII;

• Poetry night with Padraig O Tuama;

• A Mudlarking Year with Lara Maiklem;

• It’s Not That Radical with Mikaela Loach who spoke about climate justice;

• The Comedy of Errors Churchyard Theatre with The Handlebards;

• 2-day Mudlarking and Heritage Craft Festival;

• Experience the Christian Orthodox Tradition Day of Talks.

We also brought Blankets for London and The Big Cathedral Knit to the Cathedral by partnering with not-for-profit company Craft Forward based in Brixton. Over two days, one in August for producing squares and one in November for assembling blankets, over 3,000 people from all different backgrounds, ages and faiths joined us at the Cathedral to produce over 200 blankets. Craft Forward distributed these to several homeless charities in London in early December. We look forward to building on this relationship with Craft Forward in 2025.

We also welcomed 2,000 people on our tours throughout the year. These tours play an important role in telling visitors the story of Southwark Cathedral and we are very grateful to our brilliant team of Guides who deliver them.

Exhibitions in 2024 included a display of icons by acclaimed iconographer Hanna Ward, Threads Through Creation - a spectacular re-telling of the Creation story in Genesis using twelve huge textile panels, and the aforementioned Gaia . We also re-introduced art in the café and will be looking at inviting local artists and charities to display their work in 2025 and beyond.

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

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space and heritage church building. The work is also key to the Cathedral’s fundraising activities and supports important retail and café income.

Plans for 2025 include hosting Peter Walker’s Peace Doves installation, A Luxmaralis lightshow telling the Christmas story in the build-up to advent, a two-day History Book Festival, our annual Mudlarking and Heritage Craft show and introducing a programme of (free to attend) Living Faithfully theological talks.

FINANCIAL REVIEW

The total operating result for 2024 before gains and losses on investments was a surplus of £324,578, this compares to a deficit of £30,275 in 2023. This includes a small surplus of £2,795 on restricted funds (2023 - £6,700).

Income increased by £802k from £2.75m to £3.55m. £450k of this increase has been used to create a new designated fund to be used over the next three year to drive income by increasing visitor numbers and supporting long term planning on property projects.

Expenditure also increased by £447k, from £2.78m to £3.2m. The largest contribution to this increase came from an increase in expenditure on raising funds. An increase of £160k related to trading and fundraising activity driven by increased staffing costs partially funded by grants. An increase of £110k relates to work on investment properties.

There was a net loss of £88k on the revaluation of investments in 2024, principally because of a reduction in the valuation of investment properties of £120k, offset by an increase of £32k in other investments.

Total consolidated funds at 31 December 2024 were £17,630,732 (2023 - £17,393,769). Of these £188,419 were restricted funds (2023 - 184,992) and £16,256,810 were endowment funds (2023 - £16,345,057). The unrestricted fund was £735,503 (2023 - £863,720), and £450,000 were designated funds (2023 - £0). Unrestricted and Designated funds include £193,632 represented by the net value of tangible fixed assets and £675,000 by investment properties. The free reserves were therefore minus £133,129 (2023 - £82,047), this excludes the £450,000 designated fund.

Reserves policy

The Chapter’s aim is to build up its free reserves to £540k as this is level deemed to be sufficient to address any short-term loss of income and cover a significant exceptional item of expenditure. This will be achieved through investment in visitor growth through 2025 to 2029 as outlined in the trustee plans for 2025.

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TRUSTEE PLANS FOR 2025

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

• Following the Operational Plan, to embed the new Making Space for Love strategy, into everything we do as a Cathedral;

• Continuing to develop and improve how we welcome visitors and worshippers. We will do this by:

• Increasing the knowledge and skills of our paid Hosts to ensure that they are fulfilling our visitors and worshippers needs and expectations and further improving our income from donations;

• Creating a new suite of signage and interpretation which will help orientate and inform our visitors and worshippers more effectively;

• Building a better understanding of our visitors and worshippers through an investment in, and greater focus on, audience development;

• Developing and growing the Cathedral’s social justice programme, so we are serving our diverse communities effectively and well;

• Curating a cultural spine of activity which will engage potential new visitors and worshippers to visit the Cathedral;

• In anticipation of the Church of England independent safeguarding audit in 2026, Chapter are working with the Diocese to recruit a part-time professional Cathedral Safeguarding Officer, whose focus will be helping us prepare for the audit. We are working with the Diocese on a formal Service Level Agreement to enable this appointment, and to put our existing relationship with the Diocesan Safeguarding Adviser on a more defined level;

• Maintain a four-year rolling budget for property maintenance and renewal to underpin long term financial security.

• Following the recruitment of the Fundraiser in 2024, developing our fundraising and development activity (with input and guidance from the SLT) to allow us to become more strategic in the way we grow this area of our work;

• Improvement in the performance and effectiveness of the Cathedral’s IT function;

• Finish the excellent work which was undertaken in 2024 around the Cathedral’s Assets and Liabilities, to have complete understanding of the Cathedral and its Estate;

• Complete the Conservation Management Plan;

• Find a long-term, workable solution for the All Hallows site;

• 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.

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Early consultation has commenced with stakeholders regarding the public realm at the western fringe of the Cathedral;

• Harvard Chapel – the re-ordering of the chapel to provide an accessible, heated space for quiet prayer and worship. The pre-application process is underway;

• Millennium Courtyard – a landscaping project considering a safe and functional stone surface for access and provision of a public outdoor space during opening hours. The re-landscaping of this area is to be considered in line with the new public realm landscaping being delivered by the developers of Minerva House;

• Tower Crossing Platform and Nave Floor – replacing existing timber finishes with stone and incorporating under-floor heating in-line with Net Zero Carbon 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. The Cathedral is running a tender process for a Lighting Designer;

• Decarbonising heating systems for the Cathedral office (Montague Chambers) and plan for decarbonising heating of Millennium Building and Song School.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance

The Cathedral is registered as a charity with the Charity Commission, in accordance with the Cathedrals Measure 2021.

The Chapter are the board of charitable Trustees that exercise governance and have responsibility for the overall life of the Cathedral. The Chapter consists of the Dean, two executive Residentiary Canons, three non-executive Residentiary Canons, and six lay nonexecutive members. The lay non-executive members include the Senior Non-Executive Member and the two Cathedral Wardens.

Chapter meetings are chaired by the Dean, or by the Senior Non-Executive Member in the Dean’s absence. Chapter meets ten times a year, and is attended by members of Chapter as well as the Chief Operating Officer (COO) and the Chief Financial Officer (CFO). Each meeting includes reports from the COO and CFO, as well as items on governance, compliance and general matters to enable Trustees to make decisions that are in the best interests of the Cathedral.

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. The Dean also has several statutory roles and responsibility for the governance of the Cathedral, including as Chair of the Trustees.

Trustee Recruitment and Training

When new Trustees are appointed, we follow an induction process suggested by the Association of English Cathedrals. This 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 & Proper Person Declaration and Declaration of Interest Form. Toward the end of 2024, a skills audit was carried out to help identify areas that would be useful for future training in 2025 and beyond.

Documents provided to Trustees include Cathedral Constitution & Statutes, Charity Commission 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:

• The Nominations Committee advises Chapter on the appointment of individuals to Chapter and other Committees. In doing so, the Committee ensures that all appointments are fair and transparent, and that there is diversity among members. The Committee also has responsibility for recommending to Chapter the appointment

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of Directors to the SCEL Board. The Committee regularly review the skills, knowledge and experience of Chapter and other Committee members.

• The Audit and Risk Committee review the activities and management of the Cathedral with an independent perspective in order to identify, manage and mitigate risk. The Committee also recommends on the Cathedral’s audit functions. The Dean is not a member of the Committee, but may attend, and speak at, meetings. Further information on how the Cathedral approaches and manages risk is set out in the Risk section below.

• The Finance Committee is concerned with the financial management 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. The Dean is not a member of the Committee, but may attend, and speak at, meetings. 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 Committee terms are to be reviewed by Chapter every three years. Each member of Chapter and the Committees 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.

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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 lay staff of 39 employees (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 Leadership Team (SLT) meeting. SLT meets weekly, chaired by the COO and attended by the Dean, the Canon Pastor (Sub-Dean), Canon Precentor and CFO. Heads of Department are individually invited to attend for part of an SLT meeting twice a year, providing an opportunity for reciprocal support, updates and feedback. SLT’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 attended by the EA to the COO, who records actions and circulates an action tracker 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 (weekly) and Health, Safety and Security Meeting (fortnightly) are key forums for staff to meet to discuss the Cathedral diary and our activities, ensuring clear communication between stakeholders and compliance in terms of H&S and RAMS. Other groups such as the Visual Arts Group and Sustainability Committee meet on a regular basis and are formed of Cathedral staff, Diocesan staff and volunteers. There are regular SLT agenda items for members to report on matters discussed in these forums, with some matters taken to Chapter.

Our lay staff pay structures are not set formally, and a 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

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year following. Any percentage uplift is discussed initially between the CFO and COO, presented as part of the draft Budget to SLT, 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 327 active 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 (currently 30) 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. Eco Church volunteers at All Hallows Church). There are also volunteers based with Robes Overnight Shelters who provide food and care for homeless guests in the early months of the year.

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. We have achieved this in a number of ways, including a Volunteers Forum where we invite a guest speaker to facilitate some training and invite each department at the Cathedral to speak about their work, as well as advertise any volunteer roles. Not only is this a useful exercise for departments to help bolster the work the Cathedral teams are doing, but it also provides 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 Forum’s success, it is hoped that this will continue to be an annual event to be built on further in 2025. The Volunteers Officer also organises reciprocal visits for volunteers to foster a sense of community, build strong relationships with other organisations and encourage knowledge sharing. In 2024, volunteer trips were arranged with the Tower of London, St John’s Gate, HMS Belfast and All Hallows by the Tower. The introduction of a new volunteer database called Assemble in early 2024 has also enabled the Volunteer Officer to securely store data and provide useful reports, including number of volunteer hours recorded (approximately 5,972 hours among 134 volunteers). The system also assists with volunteer recruitment - in 2024 we welcomed 43 new volunteers to the Cathedral.

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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 INEQE audit in June 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, ensures 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 (49 undertook this in 2024). We also extended the leadership level training to include our Day Chaplains, of whom 18 completed the training in 2024.

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 organised 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. As a worshipping community we observed Safeguarding Sunday in November, stressing our shared responsibility for safeguarding across our common life. There is a standing notice about safeguarding in our weekly newssheet and e-newsletter, and 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. In 2024, DBS checks were carried out for 8 new volunteers and 6 members of staff.

Safeguarding is reported on, and discussed as appropriate, at every SLT 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

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Safeguarding Officers. This group meets regularly 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 his capacity as head of HR and lead on governance, legal matters and risk.

Following on from our reports to the Charity Commission in 2023 concerning historic abuse, the Commission confirmed its satisfaction with the conduct of matters reported. They did, though, suggest a light-touch independent risk assessment of one aspect of Cathedral life, and this was undertaken by Thirtyone8 in April/May. Their risk assessment confirmed that the Cathedral was managing all risks appropriately, with one suggestion going forward: to introduce some sessions staying safe for our choristers. We made one further report to the Commission in 2024, on a matter related to an historic case that had already been reported. Again, the Commission was content with our handling of the matter.

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 remains within the finance function. The aim is to raise funds for the Cathedral 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 ensure 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.

Going forward, we also aim to invest greater time, effort and care in the stewardship of our donor relationships, not least – for example – by more promptly thanking and acknowledging donors for their support and reporting on its impact.

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 relevant persons. 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 our ability to fulfil our mission.

In 2023-24, 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 investigated thoroughly, and we will respond appropriately to all Freedom of Information requests from individuals.

This year, we recruited a new fundraiser, Ben Skelton, who joined the Cathedral at the end of July, filling a post that had been vacant for almost two years. During the interim, fundraising had been performed on an ad hoc basis by a combination of finance and admin team staff and some very committed and capable volunteers. While these individuals achieved some very impressive results, the lack of a single dedicated person with overall

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responsibility and oversight for fundraising inevitably resulted in some gaps in systems in areas such as planning and stewardship.

Much of the first five months of Ben’s time at the Cathedral (the last five months of the year) was spent researching donor and supporter data and relationships, and in organising a stewardship event for historic donors at the Cathedral in the autumn. Thanks to support from the Cathedral Events team and the staff of corporate partner Bankside Hotel, the latter was a significant success – generating several donations and pledges and reactivating a number of donor relationships.

Draft donor plans are now in place to guide fundraising campaigns for all the Cathedral’s main areas of activity and objectives over the coming years.

In the first five months of our new Fundraiser’s employment, an additional £36k was banked in new grants, with notable grants and pledges being made by organisations including the Benefact Trust, the Worshipful Company of Saddlers and the Frazer Trust.

Risk Management, Reporting and Monitoring

As a small, but complex organisation, Southwark Cathedral has an ongoing exposure to a range of risks: financial, legal and reputational. It is the ultimate responsibility of the Chapter to regularly review and assess these risks, ensuring the Cathedral has effective and adequate risk management, with proper internal controls in place. Chapter recognises that any risk management system can provide only reasonable and not absolute assurance against loss.

To assist Chapter in their assessment, there are a number of supporting functions. The Audit & Risk Committee, Senior Leadership Team and Finance Committee (which pays particular attention to financial risk) are all charged with the ongoing assessment of Southwark Cathedral’s exposure to risk.

Operations

The Risk Register too remains a “live” document with regular updates to keep a track on organisational risk, looking at causes, mitigations and target actions with timelines attached. The Operational Plan (written to accompany the Cathedral’s new five-year strategy) also provides a degree of organisational reassurance that proper planning and resource management are in place.

Some of the previous risks from last year’s Annual Report remain ongoing organisational risks, such as the risk of receiving insufficient voluntary income and the ongoing effects of a number of external factors affecting our trading and property income. However, a great deal had been done to mitigate other issues – such as better strategic financial processes and planning and the recruitment of a dedicated Fundraiser.

The Cathedral remains focused on a number of practical mitigations to these organisational risks, such as diversification of income streams and maintenance of good client/customer relations. In order to ensure the best possible conditions for future trading opportunities, the Cathedral has also rewritten and updated the Terms of Reference with SCEL (the Cathedral’s Enterprise function).

The appointment of a permanent CFO (with a strong charity background) in 2024 has meant that a number of financial processes have been reviewed and improved. The appointment of a new COO in 2024 too (with a strong business background) has ensured a lot of the

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income-generating functions of the Cathedral have also been reviewed and improved.

Safeguarding

In terms of Safeguarding risks, there still remains the ongoing legal and financial risk from claims in respect to current instances of abuse, as well as the legal and financial risk from breaches of current policies and processes and the legal and financial risk from claims in respect of non-recent instances of abuse. Alongside this risk is the reputational risk which flows from the associated negative publicity and loss of stakeholder confidence. Mitigation of the Safeguarding risks once again include our ongoing liaison with the Diocesan Safeguarding Team, Safeguarding training, a strong safeguarding culture throughout the organisation, Safer recruitment.

Fabric and Building

In terms of Fabric and Building risks, issues around insufficient funding to carry our planned and unplanned repairs (especially in a time of rapidly rising costs) remain a concern, as is the cost of timely maintenance to the Cathedral’s estate.

Building maintenance and Health and Safety concerns relating to staff, volunteers and visitors also remain a concern, however a range of effective measures are now in place, including the creation of the Assets and Liabilities register and a live compliance planning process which helps us keep abreast of all of the Big Six (i.e. Gas, Electrical, Water, Fire, Asbestos, Lifts) areas for building maintenance. A much more transparent process has been developed to allow more strategic planning of future works, developed by the Property team with assistance from the Property Strategy Group.

Regular reporting and mitigations are in place for incidents, accidents and near misses through the fortnightly Health, Safety and Security Committee with leadership oversight of all issues being taken weekly to the Senior Leadership Team. Staff training and awareness of health and safety issues remain a high priority.

Registered Charity compliance risks

The legal, financial and reputational risk from breaches of policies and processes adopted under the new Cathedrals Measure also remains a risk, but the recruitment of a CFO steeped in experience of Registered Charity law and practice has mitigated this risk considerably.

Strategy

The inability to be articulate our strategy, leading to lack of progress on actively translating our mission into practical achievements has been mitigated in large part by the publishing of the Making Space for Love strategy - giving a clear and understandable structure to the Cathedral’s strategic ambitions. The strategy has been widely promoted to give staff, volunteers, congregation and wider stakeholders an understanding of the Cathedral’s future direction. In addition, the creation of the internal Operational Plan, laying out budget and timescales for the delivery of the strategy, has also provided considerable reassurance to internal stakeholders.

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Data Protection

Data protection breaches (including GDPR) remain a risk. In mitigation, the Cathedral has employed industry experts, Hope & May to review our compliance structure and work with the COO and the Governance & Committees Manager, to deliver a robust compliance culture. This has included Hope & May running an All-Staff seminar on GDPR in early 2025.

IT/Communication

IT and communication failures continue to be a risk and the Cathedral remains in regular dialogue with the Diocese (the Cathedral’s IT supplier) about future IT needs. An uplift in the Cathedral’s IT investment is anticipated (though not yet scoped) to ensure that the Cathedral is adequately protected.

Staff recruitment and retention

Staffing risks, including the difficulty of attracting and retaining staff, are still an ongoing concern. In mitigation, a reinvigorated structure of annual appraisal and ongoing, regular 1- 1s ensures that the Cathedral senior staff are monitoring this issue closely. The rapid turnover of staff which occurred in 2022 and 2023 has slowed considerably in the last year.

External threats

The 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) is also an ongoing issue. In mitigation, a stronger and more rigorous regime of risk assessment has been put in place, including staff training on the preparation of risk assessments. The Cathedral also has regular dialogue with police and security services to ensure support being sought, as appropriate.

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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: [phone]

General email address: [e-mail]

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 Dr Mark Oakley The Revd Canon Michael Rawson, Sub Dean, Canon Pastor and Canon Residentiary 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 Kathryn Fleming Precentor and Canon Residentiary The Rev’d Canon Roxanne Eversley Canon Librarian and Dean of Cultural Diversity and Canon Residentiary (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 (to 4 November 2024)

Statutory office holders

Chief Operating Officer Justine Horseman Sewell (to 9 April 2024) Isabel Merrifield (Interim, 23 March 2024 to 16 September 2024) Paul Smith (from 9 September 2024) Chief Finance Officer David Edgar (to 13 April 2024) Ted Halshaw (from 15 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 Leadership Team 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) Isabel Merrifield (Interim COO) (23 March 2024 to 16 September 2024) Paul Smith (COO) (from 9 September 2024)

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David Edgar (CFO) (from 5 June 2023 to 13 April 2024) Ted Halshaw (CFO) (from 15 April 2024)

The Finance Committee

Mr Daniel Chumbley (Chair) Mr Colin Johnston Mr Steve Cockell (to 31 December 2024) Mr Richard Cornwell Mr Richard Holman The Rev’d Canon Jeremy Clark-King Mr Julian Sansum (from 23 March 2024)

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 (to 4 November 2024)

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 Ms Anna Joynt Ms Katie Lithgow Mr Richard Malins (Secretary)

The Nominations committee

Ms Gill Reynolds (chair) Mr Daniel Chumbley Mrs Linda Hutchinson The Rev’d Canon Kathryn Fleming Mr Simon Kingston

Bankers

National Westminster Bank plc 10 Southwark Street London SE1 1TT

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

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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

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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 23 April 2025

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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 2024 which comprise the Consolidated Statement of Financial Activities, the Group and Cathedral Balance Sheets, the Consolidated Statement of Cash Flows 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 2024, 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.

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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 28, 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

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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.

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• 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: 02 May 2025 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

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SOUTHWARK CATHEDRAL

Consolidated Statement of Financial Activities for the year ended 31[st] December 2024

Unrestricted Designated Note fund funds £ £ Income from: Donations and legacies 3 1,157,180 - Grants in support of mission 4 87,827 - Charges and fees arising in course of mission 5 215,894 - Trading and fundraising 6 1,195,332 - Investments 7 245,020 - Other income - - Total income 2,901,253 - Expenditure on: Raising funds 8 1,008,365 - Charitable activities: Ministry 9 508,286 - Cathedral and precincts upkeep 10 878,361 - Education and outreach 11 92,646 - Community, parish and congregation 12 89,944 - Other expenditure 1,868 - Total expenditure 13 2,579,470 - Net income/(expenditure) before gains/(losses) on revaluation of investments 321,783 - Gains/(losses) on revaluation of investments - - Net income/(expenditure) 321,783 - Transfers between funds 26 (450,000) 450,000 Net increase/(decrease) in funds (128,217) 450,000 Reconciliation of funds: Total funds brought forward 863,720 - Total funds carried forward 26 735,503 450,000	Unrestricted Designated Note fund funds £ £ Income from: Donations and legacies 3 1,157,180 - Grants in support of mission 4 87,827 - Charges and fees arising in course of mission 5 215,894 - Trading and fundraising 6 1,195,332 - Investments 7 245,020 - Other income - - Total income 2,901,253 - Expenditure on: Raising funds 8 1,008,365 - Charitable activities: Ministry 9 508,286 - Cathedral and precincts upkeep 10 878,361 - Education and outreach 11 92,646 - Community, parish and congregation 12 89,944 - Other expenditure 1,868 - Total expenditure 13 2,579,470 - Net income/(expenditure) before gains/(losses) on revaluation of investments 321,783 - Gains/(losses) on revaluation of investments - - Net income/(expenditure) 321,783 - Transfers between funds 26 (450,000) 450,000 Net increase/(decrease) in funds (128,217) 450,000 Reconciliation of funds: Total funds brought forward 863,720 - Total funds carried forward 26 735,503 450,000	Unrestricted Designated Note fund funds £ £ Income from: Donations and legacies 3 1,157,180 - Grants in support of mission 4 87,827 - Charges and fees arising in course of mission 5 215,894 - Trading and fundraising 6 1,195,332 - Investments 7 245,020 - Other income - - Total income 2,901,253 - Expenditure on: Raising funds 8 1,008,365 - Charitable activities: Ministry 9 508,286 - Cathedral and precincts upkeep 10 878,361 - Education and outreach 11 92,646 - Community, parish and congregation 12 89,944 - Other expenditure 1,868 - Total expenditure 13 2,579,470 - Net income/(expenditure) before gains/(losses) on revaluation of investments 321,783 - Gains/(losses) on revaluation of investments - - Net income/(expenditure) 321,783 - Transfers between funds 26 (450,000) 450,000 Net increase/(decrease) in funds (128,217) 450,000 Reconciliation of funds: Total funds brought forward 863,720 - Total funds carried forward 26 735,503 450,000	Restricted funds £ 46,621 565,823 17,823 - 19,782 -	Endowment funds £ - - - - - - - - - - - - - - - (88,247) (88,247) - (88,247) 16,345,057 16,256,810	Total funds 2024 £ 1,203,801 653,650 233,717 1,195,332 264,802 - 3,551,302 1,119,357 794,501 1,110,616 110,438 89,944 1,868 3,226,724 324,578 (87,615) 236,963 - 236,963 17,393,769 17,630,732	Total funds 2023 £ 486,373 683,633 217,996 1,071,884 253,898 35,433
	2,901,253	-	650,049			2,749,217
	1,008,365 508,286 878,361 92,646 89,944 1,868	- - - - - -	110,992 286,215 232,255 17,792 - -			848,201 715,907 1,011,046 104,551 97,364 2,423
	2,579,470	-	647,254			2,779,492
	321,783 -	- -	2,795 632			(30,275) (1,611,193)
	321,783 (450,000)	- 450,000	3,427 -			(1,641,468) -
	(128,217) 863,720	450,000 -	3,427 184,992			(1,641,468) 19,035,237
	735,503	450,000	188,419			17,393,769

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.

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SOUTHWARK CATHEDRAL

Consolidated Balance Sheet as at 31[st] December 2023

Note Fixed assets Investments 17 Tangible fixed assets: Property 19 Fixtures, fittings, furniture and equipment 20 Current assets Stocks 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 25 Represented by: Unrestricted fund 26 Designated fund 26 Restricted funds 26 Endowment funds 26 Total funds	Unrestricted fund £ 675,000 - 193,632	Designated funds £ - - -	Restricted funds £ 28,279 - 8,000	Endowment funds £ 2,793,160 13,205,925 -	Total funds 2024 £ 3,496,439 13,205,925 201,632 16,903,996 29,117 300,301 866,681 1,196,099 (386,863) 809,236 17,713,232 - (7,500) (75,000) 17,630,732 735,503 450,000 188,419 16,256,810 17,630,732	Total funds 2023 £ 3,584,054 13,205,925 115,673
	868,632	-	36,279	15,999,085		16,905,652
	29,117 300,301 221,107	- - 450,000	- - 195,574	- - -		30,828 494,404 510,569
	550,525 (386,863)	450,000 -	195,574 -	- -		1,035,801 (455,184)
	163,662	450,000	195,574	-		580,617
	1,032,294 (214,291) (7,500) (75,000)	450,000 - - -	231,853 (43,434) - -	15,999,085 257,725 - -		17,486,269 - (17,500) (75,000)
	735,503	450,000	188,419	16,256,810		17,393,769
	735,503 - - -	- 450,000 - -	- - 188,419 -	- - - 16,256,810		863,720 184,992 16,345,057
	735,503	450,000	188,419	16,256,810		17,393,769

The financial statements for Southwark Cathedral, (registered charity number 1200866), for the year ended 31 December 2024 were approved and authorised for issue by the Chapter on 23 April 2025.

The Very Reverend Dr Mark Oakley Dean

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SOUTHWARK CATHEDRAL

Cathedral Balance Sheet as at 31[st] December 2023

Note Fixed assets Investments 17 Subsidiary undertaking 18 Tangible fixed assets: Property 19/20 Plant and equipment Current assets Stocks 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 Represented by: Unrestricted fund 26 Designated funds 26 Restricted funds 26 Endowment funds 26 Total funds	Unrestricted fund £ 675,000 100,000 - 149,580	Designated funds £ - - - - - - - 450,000 450,000 - 450,000 450,000 - - - 450,000 - 450,000 - - 450,000	Restricted funds £ 28,279 - - 8,000 36,279 - - 195,574 195,574 - 195,574 231,853 (43,434) - - 188,419 - - 188,419 - 188,419	Endowment funds £ 2,793,160 - 13,205,925 - 15,999,085 - - - - - - 15,999,085 257,725 - - 16,256,810 - - - 16,256,810 16,256,810	Total funds 2024 £ 3,496,439 100,000 13,205,925 157,580 16,959,944 - 162,202 801,791 963,993 (240,023) 723,970 17,683,914 - - (75,000) 17,608,914 713,685 450,000 188,419 16,256,810 17,608,914	Total funds 2023 £ 3,584,054 100,000 13,205,925 69,912
	924,580 - 162,202 156,217 318,419 (240,023) 78,396 1,002,976 (214,291) - (75,000) 713,685 713,685 - - - 713,685					16,959,891
						- 467,842 316,453
						784,295 (319,352)
						464,943
						17,424,834 - - (75,000)
						17,349,834
						819,785 - 184,992 16,345,057
						17,349,834

The financial statements for Southwark Cathedral, (registered charity number 1200866), for the year ended 31 December 2024 were approved and authorised for issue by the Chapter on 23 April 2025.

The Very Reverend Dr Mark Oakley Dean

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SOUTHWARK CATHEDRAL

Consolidated Statement of Cash Flows for the year ended 31st December 2024

Note Net cash flow from 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 flow from investing activities Cash flows from financing activities: Repayment of borrowing 23 Net cash flow from financing activities 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	2024 £ 202,784	2023 £ (336,903)
	239,868 24,934 - - (101,474)	229,550 24,348 100,000 (55,303) (80,493)
	163,328	218,102
	(10,000)	(10,000)
	(10,000)	(10,000)
	356,112 510,569	(128,801) 639,370
	866,681	510,569

Analysis of changes in net debt

Analysis of changes in net debt
Opening balance £ Cash at bank and in hand and short term deposits 510,569 Loans due within one year (10,000) Loans due after one year (92,500) 408,069	Cash flows £ 356,112 2,500 10,000 368,612	Closing balance £ 866,681 (7,500) (82,500)
		776,681

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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 goods and services are donated to the Cathedral the value is included in the appropriate classification of income and expenditure when the control over the expected economic benefits that flow from the donation has passed to the charity, it is probable and the fair value of the value to the charity can be measured reliably

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.

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Grants receivable

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

Grants receivable which are subject to conditions are recognised once any conditions outside the control of the charity have been met.

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 multiemployer 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

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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.

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.

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.

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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, Designated 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.

Designated Funds

These are funds which have been designated and set aside for a particular purpose by the Trustees

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.

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 profit or loss.

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

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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.

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2 Prior year Consolidated Statement of Financial Activities

Income from: Donations and legacies Grants in support of mission Charges and fees arising in course of mission Trading and fundraising Investments Other income Total income Expenditure on: Raising funds Charitable activities: Ministry Cathedral and precincts upkeep Education and outreach Community, parish and congregation Other expenditure Total expenditure Net income/(expenditure) Gains/(losses) on revaluation of investments Net income/(expenditure) after gains/(losses) on revaluation of investments Transfers between funds Net increase/(decrease) in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	Unrestricted fund £ 465,312 71,899 213,676 1,055,355 233,747 35,433 2,075,422 755,976 363,794 759,496 89,668 97,364 2,423 2,068,721 6,701 (545,556) (538,855) 375,265 (163,590) 1,027,310 863,720	Restricted funds £ 21,061 611,734 4,320 16,529 20,151 -	Endowment funds £ - - - - - - - - - - - - - - - (1,068,016) (1,068,016) (350,556) (1,418,572) 17,763,629 16,345,057	Total funds 2023 £ 486,373 683,633 217,996 1,071,884 253,898 35,433
		673,795		2,749,217
		92,225 352,113 251,550 14,883 - -		848,201 715,907 1,011,046 104,551 97,364 2,423
		710,771		2,779,492
		(36,976) 2,379		(30,275) (1,611,193)
		(34,597)		(1,641,468)
		(24,709)		-
		(59,306)		(1,641,468)
		244,298		19,035,237
		184,992		17,393,769

.

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3 Income from donations and legacies

Income from donations and legacies	Income from donations and legacies
Unrestricted fund £ Congregational collections and giving 254,628 Donations and fundraising appeal 737,736 Tax recoverable under Gift Aid 45,014 Legacies and gifts in memory 119,802 1,157,180		Restricted funds £ - 43,892 2,729 - 46,621	Total 2024 £ 254,628 781,628 47,743 119,802 1,203,801	Unrestricted fund £ 213,296 153,320 62,696 36,000 465,312	Restricted funds £ - 13,421 2,640 5,000 21,061	Total 2023 £ 213,296 166,741 65,336 41,000 486,373
	1,157,180

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 £ 74,011 - - - 13,816	Restricted funds £ 259,633 192,241 18,749 - 95,200 565,823	Total 2024 £ 333,644 192,241 18,749 - 109,016 653,650	Unrestricted fund £ - - - - 71,899	Restricted funds £ 320,598 164,616 14,343 13,360 98,817	Total 2023 £ 320,598 164,616 14,343 13,360 170,716
	87,827			71,899	611,734	683,633

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

Facility and other fees	Unrestricted fund £ 215,894	Restricted funds £ 17,823	Total 2024 £ 233,717	Unrestricted fund £ 213,676	Restricted funds £ 4,320	Total 2023 £ 217,996

6 Income from trading and fundraising activities

Unrestricted fund £ Gross income of shop, refectory, events and meeting rooms 934,742 Vistor engagement activities 260,590 1,195,332	Unrestricted fund £ Gross income of shop, refectory, events and meeting rooms 934,742 Vistor engagement activities 260,590 1,195,332	Restricted funds £ - - -	Total 2024 £ 934,742 260,590 1,195,332	Unrestricted fund £ 839,807 215,548 1,055,355	Restricted funds £ - 16,529 16,529	Total 2023 £ 839,807 232,077
	1,195,332					1,071,884

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7 Income from investments

Unrestricted fund £ Income from investment property 239,867 Income from other investments 136 Interest receivable on short term deposits 5,017 245,020	Unrestricted fund £ Income from investment property 239,867 Income from other investments 136 Interest receivable on short term deposits 5,017 245,020	Restricted funds £ 19,782 - 19,782	Total 2024 £ 239,867 19,918 5,017 264,802	Unrestricted fund £ 229,550 788 3,409	Restricted funds £ - 20,151 -	Total 2023 £ 229,550 20,939 3,409
	245,020			233,747	20,151	253,898

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 £ 338,134 497,859 - 172,372 1,008,365	Restricted funds £ 37,218 - - 73,774 110,992	Endowment funds £ - - - - -	Total funds 2024 £ 375,352 497,859 - 246,146 1,119,357	Unrestricted fund £ 229,541 420,872 - 105,564	Restricted funds £ 62,562 - - 29,662	Total funds 2023 £ 292,103 420,872 - 135,226 848,201
					755,977	92,224

9 Expenditure on ministry

Clergy stipends and working expenses Clergy housing costs Clergy support costs Services, music and congregational costs	Unrestricted fund £ 37,058 37,169 184,717 249,342 508,286	Restricted funds £ 171,827 - - 114,388 286,215	Endowment funds £ - - - - -	Total funds 2024 £ 208,885 37,169 184,717 - 363,730 794,501	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

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 £ 7,753 409,053 123,421 16,236 321,898 878,361	Restricted funds £ 160,182 23,766 - 7,681 40,626 232,255	- Endowment £ - - - - - -	Total funds 2024 £ 167,935 432,819 123,421 23,917 362,524 1,110,616	Unrestricted fund £ - 464,440 108,133 17,415 169,508	Restricted funds £ 93,436 27,645 - 2,677 127,792	Total funds 2023 £ 93,436 492,085 108,133 20,092 297,300
					759,496	251,550	1,011,046

11 Expenditure on education and outreach

Educational activities Charitable and other giving	Unrestricted fund £ 42,112 50,534	Restricted funds £ - 17,792	- - £ - - -	Total funds 2024 £ 42,112 68,326 110,438	Unrestricted fund £ 38,945 50,723 89,668	Restricted funds £ - 14,883	Total funds 2023 £ 38,945 65,606
	92,646	17,792				14,883	104,551

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12 Expenditure on community, parish and congregation

Community, parish and congregation	Unrestricted fund £ 89,944	Restricted funds £ -	- - £ -	Total funds 2024 £ 89,944	Unrestricted fund £ 97,364	Restricted funds £ -	Total funds 2023 £ 97,364

13 Expenditure – direct and support costs

----- Start of picture text -----
Unrestricted 2024 Restricted 2024 Total 2024
Direct Support Direct Support Direct Support
----- End of picture text -----

	Unrestricted 2024 Direct Support	Restricted 2024 Direct Support	Total 2024 Direct Support
Raising funds	costs costs Total costs £ £ £ 759,235 249,130 1,008,365	costs costs Total costs £ £ £ 91,932 19,060 110,992	costs costs Total costs £ £ £ 851,167 268,190 1,119,357
Charitable activities Ministry 386,811 121,475 508,286 Cathedral and precincts upkeep 754,181 124,180 878,361 Education and outreach 44,000 48,646 92,646 Community, parish and congregation 43,397 46,547 89,944 Other expenditure 1,868 - 1,868 Total charitable activities 1,230,257 340,848 1,571,105 Total expenditure 1,989,492 589,978 2,579,470 For consolidated figures: Raising funds 369,492 141,013 510,505 Add: costs of trading subsidiary 389,743 108,117 497,860 759,235 249,130 1,008,365		270,268 15,947 286,215 216,308 15,947 232,255 17,792 - 17,792 - - - - - -	657,079 137,422 794,501 970,489 140,127 1,110,616 61,792 48,646 110,438 43,397 46,547 89,944 1,868 - 1,868
	1,230,257 340,848 1,571,105	504,368 31,894 536,262	1,734,625 372,742 2,107,367
	1,989,492 589,978 2,579,470	596,300 50,954 647,254	2,585,792 640,932 3,226,724
	369,492 141,013 510,505 389,743 108,117 497,860	91,932 19,060 110,992 - - -	461,424 160,073 621,497 389,743 108,117 497,860
	759,235 249,130 1,008,365	91,932 19,060 110,992	851,167 268,190 1,119,357

Included within support costs are staff and office costs associated with running the Cathedral

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 £41,180 (2023: £45,479).

14 Clergy and staff costs

Salaries and stipends Social security costs Employer pension costs Diocese staff: HR and IT support	2024 £ 1,189,593 106,328 71,893 17,566 1,385,380	2023 £ 1,031,386 92,696 61,990 19,403
		1,205,475

.

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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:

		2024	2023
£70,000	to £79,999	0	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	2024 2024 Full-time Part-time 3 1 3 2 5 - 1 3 1 9 3 2 6 4 22 21	2023 2023 Full-time Part-time 2 1 3 2 5 - 1 3 1 3 2 2 6 4
		20 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 £256,015 (2023: 236,944). The personnel included in these figures are the Dean, Canon Precentor, Sub Dean, Chief Operating Officer and Chief Financial Officer.

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 2024 – is included in the clergy and staff costs figures above and in the key management personnel figures. Their expenses were as follows.

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Number receiving expenses Services (telephone, utilities etc) Travel Hospitality Resettlement allowances and removal Other	2024 4 £ 797 2,226 3,877 - 927 7,827	2023 4
		£ 4,721 3,328 549 8,871 -
		17,469

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 £39.972 (2023: £37,819).

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.

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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 £31,782 in 2023 (2023: £24,171), 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 31st December 2024 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 2024 was nil.

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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:

	2024	2023
	£	£
External audit fees for Cathedral
Current year	18,825	17,925
Prior year	12,653
External audit fees for trading subsidiary
Current year	7,900	7,525
Prior year	5,434
Non-audit fees	780	745

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17 Investments

Fair value at 1st January 2024 Additions Net gains/losses on revaluation Fair value at 31st December 2024	Investment property £ 2,900,000 - (120,000) 2,780,000	Listed investments £ 684,054 - 32,385 716,439	Total £ 3,584,054 - (87,615)
			3,496,439

The Cathedral’s investment properties were valued as at 13 December 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.

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:

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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	2024 £ 926,891 (199,059) 727,832 7,851 (298,800) 436,883 (459,000) (22,117) 43,935 21,818 100,000 121,818 £ 44,052 232,788 (147,522) 129,318 (7,500) 121,818	2023 £ 824,495 (137,719)
		686,776 15,312 (283,153)
		418,935
		(391,312)
		27,623 16,312
		43,935 100,000
		143,935
		£ 45,761 349,384 (233,710)
		161,435 (17,500)
		143,935

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	2024 £ 13,205,925 - 13,205,925	2023 £ 12,300,000 905,925
		13,205,925

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.

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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 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 2023, a property was reclassified from investment properties to non-investment properties as it is now used to house a member of staff.

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

Group Cost At 1st January 2024 Additions At 31st December 2024 Depreciation At 1st January 2024 Charge for the year At 31st December 2024 Net book value At 31st December 2024 At 31st December 2023 Cathedral Cost At 1st January 2024 Additions At 31st December 2024 Depreciation At 1st January 2024 Charge for the year At 31st December 2024 Net book value At 31st December 2024 At 31st December 2023	Computers and software £ 93,694 6,890 100,584 93,007 1,032 94,039 6,544 687 93,694 6,890 100,584 93,007 1,032 94,039 6,544 687	Nave chairs £ 153,358 - 153,358 153,358 - 153,358 - - 153,358 - 153,358 153,358 - 153,358 - -	Shop fixtures and fittings £ 50,845 4,221 55,066 5,084 5,930 11,014 44,052 45,761 - - - - - - - -	Other assets £ 794,690 90,364 885,054 725,465 8,553 734,018 151,036 69,225 769,001 90,364 859,365 699,776 8,553 708,329 151,036 69,225	Total £ 1,092,587 101,474
					1,194,061
					976,914 15,515
					992,429
					201,632
					115,673
					1,016,053 97,253
					1,113,306
					946,141 9,585
					955,726
					157,580
					69,912

21 Debtors Trade debtors Amounts owed by group undertaking Other debtors and accrued income Prepayments
	2024 2023 £ £ 213,582 361,211 - - 69,846 122,360 16,874 10,833 300,301 494,404 Group	2024 2023 £ £ 85,693 244,707 - 97,878 59,636 114,424 16,874 10,833 162,202 467,842 Cathedral
			467,842

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22 Creditors: amounts falling due within one year

Trade creditors Taxation and social security Amounts owed to group undertaking Accruals Deferred income Bounce Back Loan Other creditors	2024 2023 £ £ 141,606 157,534 45,231 71,482 - 85,566 123,142 68,191 56,551 10,000 10,000 36,269 36,475 386,863 455,184 Group	2024 2023 £ £ 129,090 146,990 (1,704) 29,574 682 75,686 106,313 - - - - 36,269 36,475 240,023 319,352 Cathedral	2024 2023 £ £ 129,090 146,990 (1,704) 29,574 682 75,686 106,313 - - - - 36,269 36,475 240,023 319,352 Cathedral
			319,352

The movement in deferred income is:
Brought forward Released in the year Added in the year Carried forward	2024 2023 £ £ 56,551 - (56,551) 68,191 56,551 68,191 56,551 Group	2024 2023 £ £ - - - - Cathedral
			-

Creditors: amounts falling due after more than one year

2024 2023 £ £ Dean of Southwark's Fund loan 75,000 75,000 Bounce Back Loan 7,500 17,500 82,500 92,500 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	2024 2023 £ £ 75,000 75,000 - - 75,000 75,000 - - - - - - 75,000 75,000 75,000 75,000 Cathedral	2024 2023 £ £ 75,000 75,000 - - 75,000 75,000 - - - - - - 75,000 75,000 75,000 75,000 Cathedral
		75,000
		- - - 75,000
		75,000

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.

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24 Operating leases

At 31[st] December 2024, 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	2024 £ 16,892 15,810 39,578 72,280	2023 £ 14,315 14,315 18,117 46,747

At 31[st] December 2024, 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	2024 £ 77,693 20,417 - 98,110	2023 £ 174,510 59,985 20,471
		254,966

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25 Analysis of group net assets between funds

At 31[st] December 2024:

At 31stDecember 2024:
Tangible fixed assets Investments Current assets Current liabilities Liabilities due after one year Inter-fund loan Total net assets	Unrestricted fund £ 193,632 675,000 550,525 (386,863) (82,500) (214,291) 735,503	Designated Restricted funds funds £ £ - 8,000 - 28,279 450,000 195,574 - - - - - (43,434) 450,000 188,419		Endowment funds £ 13,205,925 2,793,160 - - - 257,725	Total 2024 £ 13,407,557 3,496,439 1,196,099 (386,863) (82,500) -
		450,000	188,419	16,256,810	17,630,732

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	Designated Restricted funds funds £ £ - 9,000 - 27,647 - 191,779 - - - - - (43,433)		Endowment funds £ 13,205,925 2,881,407 - - - 257,725	Total 2023 £ 13,321,598 3,584,054 1,035,801 (455,184) (92,500) -
		-	184,993	16,345,057	17,393,769

The inter-fund loan represents the accumulated balance of endowment fund assets which has been used to support unrestricted and restricted fund programmes.

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26 Consolidated statement of funds

	Balance at					Balance at
	1st January					31st December
	2024	Income	Expenditure	Revaluation	Transfers	2024
	£	£	£	£	£	£
Unrestricted funds	863,720	2,901,253	(2,579,470)	0	(450,000)	735,503
Designated funds
Future projects fund	-	-	-		450,000	450,000
Restricted funds
Music	20,000	84,322	(102,135)	-	-	2,188
Girls choir	82,295	-	-	-	-	82,295
Choristers	64,926	-	-	-	-	64,926
Major repairs and restoration projects	1,945	207,241	(211,252)	-	-	(2,066)
Other property	11,379	11,704	(13,352)	632	-	10,362
Church Commissioners: sustainability	-	117,691	(115,841)	-	-	1,850
Church Commissioners: other	-	141,942	(141,942)	-	-	-
Masvingo project	1,750	30,286	(17,792)	-	-	14,244
Ian Keatley Music Fund		5,802				5,802
Social Justice Fund		3,874				3,874
Other general	2,697	47,187	(44,940)	-	-	4,944
Total restricted	184,992	650,049	(647,254)	632	-	188,419
Endowment funds
Buildings	15,275,622	-	-	(120,000)	-	15,155,622
Property	389,310	-	-	3,445	-	392,755
Choirs	680,125	-	-	28,308	-	708,433
Total endowment	16,345,057	-	-	(88,247)	-	16,256,810
Total funds	17,393,769	3,551,302	(3,226,724)	(87,615)	-	17,630,732

Transfers between funds

Chapter have designated £450,000 of unrestricted funds for expenditure in 2025 to 2027 on promoting income generation through increasing visitor numbers and improvements to our property portfolio

Purposes of restricted funds

Music

This fund is for grants and donations to the Cathedral for its music. In 2024, 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.

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Major repairs and restoration projects

This fund is for grants and donations for major repair work and for restoration projects. In 2024, 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. Funding has been secured in 2025 to cover the deficit on the 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.

Ian Keatley Fund

This fund supports aspiring musicians in their pursuit of musical excellence. Named after Ian Keatley, a passionate advocate for music and education, the fund provides financial assistance to talented individuals who may lack the resources to fully develop their musical skills.

Social Justice Fund

This fund was created in 2024 following a donation to support the Cathedral’s work to keep the heart healthy in London by a commitment to social justice, upholding the human dignity of all people and of every age. As outlined in our new Vision.

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 £15,155,622 as at 31[st] December 2024, principally because of a revaluation of the investment properties in the fund.

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.

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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:

	2024	2023
	£	£
Southwark Cathedral Development Trust	192,241	164,616
Friends of Southwark Cathedral	18,749	14,343
Dean of Southwark's Fund	-	13,360

In addition, the Cathedral made a grant of £20,000 (2023: £20,000) to Southwark Cathedral Education Trust. 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

Net income/(expenditure) for the year (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Income added to endowment capital Income from property and investments Decrease/(Increase) in stock Decrease/(Increase) in debtors (Decrease)/Increase in creditors Other non-cash movements Net cash flow from operating acitivities	2024 £ 324,578	2023 £ (30,275)
	15,515 - (264,802) 1,711 194,103 (68,321) 202,784	13,980 - (253,898) (3,565) (247,945) 184,795 5
		(336,903)
Analysis of cash and cash equivalents
Cash at bank and in hand and short term deposits	2024 £ 866,681	2023 £ 510,569

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