Salisbury Cathedral THE CATHEDRAL CHURCH OF THE BLESSED VIRGIN MARY SALISBURY ANNUAL REPORT AND ACCOUNTS YEAR ENDED 31ST MARCH 2024 Charity No: 1202770 SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 ANNUAL REPORT AND AccouKrs CONTENTS Our Vision, Values and Strategic Objectives Cathedral Directory Report of Chapter Intrc(luction Nurturing Faith Welcome, Partnership and Diversity Sustainability Heritage and Finances Working Together 10 Public Benefit 10 Financial Review & Reserves 13 Current Challenges arKI Looking Forward 13 Governance & Key Risks Conclusion Independent Auditor's Report 20 Accounts 20 Consolidated Statement of Financial Activities 22 Consolidated Balance Sheet 24 Cathedral Balance Sheet 26 Consolidated Cash Flow Statement 28 Accounting Policies 34 Notes to the Accounts SALISBURY CATHEDRAL ST YEAR ENDED 31 IURCH 2024 OUR VISION, VALUES & STrATEGIC OBJECTIVES Our Vision We odvocate Ilberty, encourase creativity. and seek the eternity reveoled In Jesus Christ. At Salisbury Cathedral we adV￿ate for all the Ilberty that our forebears claimed for themselves. we encourage in all the creativity that has characterized this place throughout its history) and we Seek, and ￿1p all to seek, the eternity revealed in Jesus Christ. Our Values and Strategic Objectives Salisbury Cathedral is a place of worship and inspirati(￿. It is a place to be still, to think a￿1 to pray. it inspires as it offers a sense of wonder and awe. Its life arKI work are rich diverse. Our worship is fundarnental to our life. We offer a wide range of activities. All of this provides opportunities for spiritual encounter to all who come here, whatever the motivation for their visit. As well as being a place of worship arK1 prayer, we are an iconic heritage site, a venue for the arts and culture, a centre for training and work in ancient skills, a place of welcorne and hospitality for visitors from across the world and the spiritual heart of the cily, and of the Diocese of Salisbwy and its Bishop. With Boldne55, Fairness and Klndness we will: Be a place where faith is inspired, nurtured, and discovered. Welcome all, build innovative partnerships, and bec(¥ne increasingly diverse. Strengthen our financial resilience and work for our long-tem) sustainability. Support and develop our staff and volunteers to enable them to flourish. Reduce our carbon Consumpti￿ and its impact. and take action for justice locally and globally. SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 CATHEDRAL DIRECTORY The full name of Salisbury Cathedral is The Cathedral Church of the Blessed Virgin Mary Salisbury. The flnancial year 2023124 was the first full year in Nythich the Cathedral was governed by the Cathedrals Measure 120211. The Cathedral's corporate body is Chapter and the Cathedral is registered with the Charity Commission, and co-iegulated by the Church Cofflffli55ior)ers. The Cathedrals Measure 120211 requires each cathedral to pr(￿lUCe its own constitution and statutes which introduce the requirements and apply ihe principles of the Measure according to local or historic use, and in particular specify the functions and responsibilities of individuals, both clerical and lay. and establish the governance and administrative framework. The governing statutes of the Cathedral are the Solisbury Cotheéfol Constitution ond 5totutes dated 11 ih November 2022. Under these statutes. the governing body of the Cathedral is the Chapter, which is supported by a number of other bodies and indi￿dual$ as set out in thi5 directory. Further information about the governance of the Cathedral 15 giver) in the Report of Chapter. The addre55 of ihe Cathedral 15 6 The C105e, Solisbury. Wiltshire. SPI 2EF. The Cathedral's website is at ht Ilwww.salisbu athedral.o Chapter Dean The Very Revd Nicholas Papadopulos Canons Residentlary The Revd Ca￿n Anna Macham IPrecentor) The Revd CarM)n Edward Probert {Chancellorl The Revd Canrm Kenneth Padley {Treasurerl Senior Non-Execuiive Chapter Member Mr Nigel Salisbury Non.Executive Members The Ven Sue Groom The Revd can￿ Tim Daykin Mr5 Jane Barker (left June 30231 Mrs Lucinda Herklots Mr Ji)nathan Leigh Mr5 Judith Davry (joined August 2023) Mr David French ljoined Ausust 2023) Mrs Jackie Molnar - Chapter Clerk (Chief Operating Officer) In attendance: Finance Committee Mr Nigel Salisbury (Chairl Mr Robir) Creswell Mrs Beatrice Hollond Mr Stephen Lamdin Mrs Emma Osborne (left November 20231 Mr Tiwn Donall tioined Idorch 20241 In attendance- The Dean of Salisbury Mrs Jackie Molnar - Chapter Clerk Ichief Operating Officerl Mrs Lisa l+lorrist￿ Chief Financial Officer SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 Audit and Risk Committee Mr Alastair H￿ter Ichairl The Revd Camn Tom Dayl(in Mr David James The Revd Dr David Neaum In attendance The Dean of Sallstwry Mrs Jackie Molnar . Chapter Clth (Chief Operating Officer) Mrs Llsa ￿rI15t￿n - Chief Financial OffI￿r Nominations Committee Mrs L￿1r￿la Herklots Ichairl The Revd Canon Tim Dafvin (left November 2023J The Ven S￿¥ Grc The Revd carm￿ Eth¥ard Probert Mr David French (joined November 2023) In attendance: Jackie Molnar- Chapter Clerk (Chief Operating Officer) Fabric Advisory Committee Sir Haydefi Phillips (Chalr) Mr Ptciemy Dean Dr Jthn Goodall MTS Wendy James The Revd Canon Brt￿ sath￿r$ (left November 2023) The Revd Canon Andy Trenier Ms Anna Eavis lin thisory copacity} In attendance: The Dean of Salisbury The Revd Canon Kenneth Padley Mrs Jackie h￿l￿ar . Chapter Clerk (Chief Operating Officer) Mr Gary Price . Clerk of Works Mr12aak Hudson - Cathedral ArchTtect Mr Graham Keevill Cathedral Archaeologist Lay Managers Chapter Clerk (Chief Operating Offlcer Mrs Jackie Athr Chief Financial Officer Mrs Lisa Morriston Director of Music Mr David Hal Director of Extemal Relatllyls Ms JarE IIA & Visitor Experience Director of Communlty Engagement As Louise Da￿ (app)inted Sept .241 SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 Human Resources Manager Ms Nicola Stafford Professional Advisers Bankers Lloyds plc, 38 Blue Boar Row, Salisbury, SP1 1 DB Solicitors Parker Bullen, 45 Castle Street, SalisbLry, SP2 7JR Auditors Haysmac LLP. 10 Street Place, London EC4R 1AG Investment managers CCLI, Senator House. 85 Queen Victoria Street. London, EC4V 4ET Land agent Strutt & Parker. 41 Milford Street. Salisbury. SP1 2BP Architect Izaak HLMlson, Dittrich Hudson Va5etti Architects, Studios 12-13. 9 Bath Buildings, Montpelier, Bristol. B56 5PT Archaeologist Graham Keevil. 85 KYnaSt(￿ Road. Didcot, Oxon, OX118HA SALISBURY CATHEDRAL YEAR ENDED 31" MARCH 2024 INTRODUCTION For the Dean, the year under review began aNJ eNJed away from SalisLxJry. albeit in two very different places. In 2022. after a lengthy prLKe55 of discussion and legislation, t1￿ Balli￿Ck$ of Guemsey and Jersey became formally attached to the Diocese of Salisbury. To mark this significant moment In the evolution of our Di￿eSe the Dearfj of Gvemsey and Jersey were installed as Non-Re5identiary Canons of Salisbury Cathedral, and l accompanied the Cathedral Choir on a tour of the Islands. They sang an Evensong and a concert on each, returned home on the eve of Palm Sunday 2023. The events were well attended arKI the welcome we received was warm. the only unhappines5 was the journey by sea ferry. The singers, tour hoodies were bright green . and so too were many of the singers, faces when they stepped cfflto terro firnM7_. On 14 January 2024 a Iffig-awaited Milestc￿e was reached ￿ffien new altars were consecrated for the Spire Crossing and the Trinity Chapel- Tly have met a longstaThJing and critical need, and l am delighted both at the difference they have made to our public worship arHI at the pleasure they are giving to our visitors. Then after Epiphany. wth the 5￿port of the Bi$￿p and of Chapter, I began a perlod of Extended Ministerial Develcw)ent Leave . or, Sabbatical. I spent three months living and working in occupied East Jerusalem as a member of the World Council of Churches. E(￿menIcal Accompaniment Programme In Palestine and Israel. monitoring human rights and international law Leaving home is a r*rve-wracking business. So too ts stepplng away from a pla￿ of work. especially one as complex as a Cathedral. Whether it'5 a few day5 in the Channel IslaThJs or a few mcfflth5 in the Middle East, preparation for it is time-c¢x6uming: anxiety abtyjt has been left behind Is unavoidable: arml apprehension atN)ut vknat will be discovered on retum is inevStable. But l am glad to report that. while the preparation Seemed to take ages. and while the anxlety was real, the apprehension I felt as I retumed to the Cathedral at Ascensiontide 2024 was entirely unnecessary. Life, work. and worship had continwl viith(xrt interruption. It reinforced for me just how str￿8 Is the team here. In the Executive we have a group of able confSdent dlrectors who take responsibility fN $0 much more than the Operati(￿al life of the Cathedral and Close. Sn the Chapter we have a ￿se and far-sighted l￿ard of trustees Nvhose counsel is alway5 challenging and always sound. l am very grateful to them . and to all my staff and vOl￿teer colleagues. The Very Reyd Nicholas Papadopulos Dean of Salisb August 2024 REPORT OF CHAPTER Chapter is pleased to present thls rewt and the Cathedral's a￿lIted accounts for the year ended 31Si htsrch 2024. The year has seen the finalisation of a new Strategic Plan for 2024-2029 and the vislon, values and strategic objectives prO￿ded at the start of this review will be Implemented from 2024 onwards. Overall, the year has been one in vthich the Cathedral has recovered from the difflcult years of the Covid-19 health pandemlc. The budget for the year was set with prudence given ongoing uncertalnty about the degree to which %)me visitor grow>s Y￿d return and the national economic p051tion along wlth cost of livlng challenges. Collectively these created a high degree of ￿CertaInty about the number5 of visitor5 the Cathedral might welcome during the year. It ha5 therefwe been very pleasing to welcome so many people to the Cathedral d￿n9 202312024. Our visitor numbers for the year exceeded the highest number we had welcomed before the pathlemic. 5AL15BURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 Nurturing Faith The pattern of public worship and prayer is central to the Cathedral's life. The innovative way5 of offering the opportunity to worship that were created as a consequence of the pandemic are now well established and the provision of live-streamed services continues to be well received with hundreds regularly viewing. Throughout the year the Llturgy and Music team have overseen the organi5ation and delivery of our regular acts of public worship which are core to the regular rhythm of Cathedral life. We had the unusual occurrence of two Easters. and therefore two Holy Weeks, falling within the period of this report. The Advent From Darkness to Light services were particularly well attended. Whilst this has historically been the case, it remairfj a pleasure to see the Cathedral full after the challenges of recent years. At Easter 2023 we introduced an Easter Garden near the main visitor entrance to the Cathedral. We wanted to bring the Easter Story out of the IxJildTng and share Eèster with those pass by. Three crosses and a symbolic tomb. made by our stOr￿maS0nS stood amongst Mediterranean themed plants. It received a very positive response from wsitors and the local community and wa5 therefore repeated in 2024. The Cathedral ha5 hosted a range of Diocesan sefvices inc1￿j1ng Ordinati￿5. confirmations, the admission of licensed lay ministers and the School Leavers Services. Over the course of four days in June the Cathedral and Diocese welcomed 2.6W school children and celebrated their time In primary school. The Cathedral is also used by some of our local secondary schools for numerous celebratory services during the year. In May 2023 we provided the opportunity to watch the live stream of the coronation of King Charles 111 in the Cathedral. The coronation is a significant moment in the nation'5 history, and we were very pleased to offer the Cathedral space at thi5 time and to be a place many wanted to come and be part of this special occasion. As part of the Coronation celebration5 our Librartan a￿1 ArchTrvi5t curated a special exhibition called "Encounters with Kings" thich proved popular. Looking forward. our new Missioner for Young People joined the Cathedral in March 2024. We expect that the coming year will provide new ideas for engaging wth children and young people, in pthlic worship, chaplaincy to the Cathedral School and thrO￿4h building cOr￿e(tIonS with those who gather in the Close. A particular highlight for the Cathedral during the year was the installation and consecration of a new altar for the Spire Crossing and also the Trinity Chapel. with accompanying furniture. This was the culmination of six years of work, but a150 an aspirati(￿ that was initially raised over twenty year5 ago. The altar piece5 were desigfied by William Fye, who a150 designed our famous fc￿t. and the other furniture by Luke Hughes. The project benefited from the advice of the Cathedral's Fabric Advisory Committee, the Cathedrals Fabric Commission for England and Chapter members over the course of many years. The Bishop of Salisbury. the Rt Revd Stephen Lake, consecrated the altars In January 2024 and they have already found their place ￿t only within worship but also as pieces viewed and admired by visitors to the Cathedral. The Cathedral Choir took part in the annual Southern Cathedrals Festival in July 2023. hosted at Chichester Cathedral. The festival c(Mnbines the c1￿)1r5 of Chichester, Salisbury arml Winchester Cathedrals and perfomied an exciting programme of events, performances and services held in the Cathedral and other iconic venues around Chichester. The focus in 2023 was on celebrating the fflusic of William Byrd and Thomas Weelkes. both of wl)05e 4Cthh anniversaries fell within the year. The year ha5 also incl(Jded a range of musical highlights offered by the Cathedral's Music team as well as the Cathedral ￿l$ting visiting orgarbisations. These included the London Concertante, Bournemouth sym￿onY Orchestra and Salisbury Music Society amongst others. Our Organ Prom is now becoming a reg￿ar event during the summer months, as Is Messiah in December. It has been a very busy and rewarding year across all aspects of the public worship we offer alongside our music and concert programme. Being able to offer our regular, and occasional, congregatio opportunities to pause and wonder is important to us and so too the opportunities we offer for others to encounter something of the eternal vrithin the space of the Cathedral. SALISBURY CAThEDRAL ST YEAR ENDED 31 MARCH 2024 Welcome, Partnership and Diversity Visitors to the ca￿dra1 those who ccthe to the event5 we facilltate, are imkKlrtant to Us for a number of reasons. Firstly. we want to make the Cathedral building and its beautlful surroundings a place that everyone feeL5 weic(yned to. Whe￿￿r a person of Christian faith. another faith or none. We V￿rk hard to make SalisLMJry Cathedral the C105e ac￿SSible, we offer event5 and actlvltles that will draw people here whatever their backgrwrKI or demographic. From a practical perspective. those vtho visit contribute significantly to our finances. as we have to generate all the incc¥ne needed to care for the Cathedral and offer the range of Se￿Ice5, events and activitie5 that we do. The Cathedral is also committed to reaching into the l(xal community. We strive to be a place of welcome, a place of leaming and a place of enc{y￿ter for as diverse a range of people as possible. In addition to those visit U5. we also value reiatioThships with partner organi5ations In the city. We reco¥nise that many people visit salis￿ beca￿ of the Cathedral. and therefore that many of the activitie5 and events which we offer a150 briro benefit to local partners and businesse5. We participate in the Experience Pillar of the Place Partnership on clty-wide programmTng such as Taste sallstr￿ry. the city's annual food festival. During the year the Cathedral has cOntin￿d to work cl05eiy with the clty and wider local communlty. Dean and DSrector of Extemal Relations & Vi51tor Experience are part of the SalIs￿ry Place Partnership and involved 7n a number of strands of work. We continue to be a key partner in shaping the Salisbury Cultural Strategy whkh was develcped in 2023. Other partners In this wort( Include The Salisbury htsjseum. Wiltshire Creative, Salisbwy City Council and Salisbury BID. We also value our relationship with Salisbury NHS Trust. deveicped d￿n8 the pandemic. It therefore gives u5 particular pleasure to supwrt them as we did in September 2023 by hosting their staff awards and a family fun day for NHS staff and their families. Thnking those who perfomi a vital seThice to the local community is important to U5. In October 2023, the Cathedral supyorted the national Wave of Light remembrance event which fofflis part of Baby Loss Awareness week. We value all these reiatlonshlps the contriiwtion we can rnake to the IcKal community throL￿h them. Throughout the year the Cathedral team fxganise and deliver a variety of events arbj activities, ably assisted by our team of some 550 volunteers. Vlsual art, and the oppOrt￿lty it creates for connection with a whjer ccrfnmunity and for enrichment of the experience we offer. continues to be an important aspect of the Cathedral's work. The 2023 Summer exhlbltion was titled "To be Free" and showcased wort[ by leading contemporary artlsts such as Ai Weiwei, Yinka Shonibare, Mona Hatoum and Comelia Parker. It aligned with our Vision to advocate liberty. encourage creatfvlty and seek the etemity revealed In Jesus Christ. The exhibition explored what freedom is, what St means to be free. how ￿￿ can use our freedoms to help others. It was enhanced by a number of engagement events inc1￿j7n9 talks by Baroness Chakrabati and Baroness Hale, activities offered by our Education and Library and Archives teams. and a project with students at wiltsh1￿ College. Through these events we a150 aim to attract more diverse audiences and to ensure the Cathedral is for everyone. Other events In the year included welcomlng children from IcKal schoo15 through the I Sins Pop event by the Diocese of Salisbury Academy Trust. Education team have developed and offered a range of family focused holiday actI￿tIes, Inc1￿J7ng making clay gargoyles, Christmas an8eis and staffs. bumble bee pots and many more. Thls is in addition to the extenslve programme of activitie5 that take place with visiting schools. primary and secondary, during the school year. In November 2023. we held a week of spettacular light and sourKIs Sarum Lights - Illuminatins Art. which attracted over 13.CKIO people across five nights. most of them local pec4)ie and families. Our fflarket research from the event that the majority of t￿se vtho came were atteThJing for the first tirne. Footfall in the city was up Iieariy 1QX ￿ the previous week. demonstrating the event's Posltive impact ()n local hospitality b￿lneSses. as well as ￿ the Cathedral. As with all such major events. we are grateful for the hard work of our staff arKI volunteers in helping us welcome so many of our I(￿al. and wider. C(￿m￿nitIeS into the Cathedral. The Cathedral and the Close are also spaces ￿ed by a number of local partner organlsations. During the year this included Arundeils for rhe Annual E(￿lard Heath Charitable Foundation lecture. Wiltshire Creatfve held events in the Close as part of the 5alistr￿ry Intemational Art5 Festival. The SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 Alabaré BIG Sleep took place again at the Cathedral with many people. incIL￿Ing some of our siaff and volunteers, braving the hard surface and chilly night 10 raise funds for Alabare's work through sleeping in the Cloisters. Another important relationship within our wider life is with Salisbury Cathedral School. The School educates the Cathedral's Choristers. and Chapter is keen to Support a good relationship with the Headteacher and Goveming Boty of the School with which the Cathedral has a longstanding comection. For historic reasons, the Chapter appoints the $C￿l01.s Governors and exercises this right to ensure the continuance of the Christian and specifically Anglican ethos of the School. Except in this one regard, the Cathedral does not have responsibility for the r￿nIng or management of the School, which is financially independent of the Cathedral. The khoo('s results are not included within the accounts of the Cathedral. Sustainability - our Heritage and Finances An important aspect of Our life is to care for the fabric of the Cathedral, its heritage, treasures, and the Cathedral Close. It costs over £18k every dèy to care for and operate the Cathedral. The Cathedral receives no ￿90)ng Government funding or central Church of England financial support towards the care of the fabric and relles on the generosity of our ¢omTnunity. paying vi51tors a￿1 funding bodies to sustain its care and operations. The Cathedral retains its aspiration to significantly improve and make better use of the space to the South Side of the Cathedral Close. with a focus on enhanang the Vb5itor experience. Plans to submit an application in support of this to the National Lottery Heritage F￿1 have been on hold since early 2020 as a result of the pandemic but refflain a future priority. During the year. however. rnLKh WO￿ has progressed. The last of the external scaffolding on the Cathedral. needed for the longstanding Ilajor Repair Programme. was removed. Thls represents a significant moment in the Cathedral's 8¢X) year plus history. It is also a tremen¢Jous achievement, the culmination of over thirty years of Y￿rk. fver that time our staff have fundraised. applied for grant5 and organised events to secure in excess of L31hillion needed to ensure the Cathedral fabric is restored and conserved for the next generation. We are extremely grateful for all the support fr(*m donors, srant-givers a￿1 the wider commun?ty. Internally however restoration and conservation work continues. The Fabric Advisory Committee approved a 5cheffle of work in 2023 for the eight ur)repaired bay5 on the north arcade of the Cloisters and work comrnellced in early 2024. It is expected that it will take some fTve years to complete and our Development Team are already securing funding for the work. The Cathedrals Fabric Commission for England a150 approved a scheme of work to conserye the Cathedral's Burne.Jones window during the year and that work ha5 a150 commenced. The ongoing care for the heritage for which we are respwsible need5 funding and we are very grateful for the legacies and donations that people make to the Cathedral's work. Those which are given for the fabric are so important in helping to secure the future of the Cathedral.. we received £189,000 towards fabric work during the year. This included grants from the Garfield Weston Charitable Trust. the knefact TnJst, the Kirby Laing Charitable Trust, the 291b 1961 Charitable Trust and the Oulverton Trust amongst others. The Friend5 of Salisbury Cathedral have given £111,500 in the year towards a number of Cathedral projects including a new chamber organ and the new liturgical furniture. We are very grateful for this support and the ongoing work of the Friends. Looking ahead, the report of our Cathedral Architect and the quinquennial rewrts we unéertake on propertie5 provides key information for our ¢Jeveloping ten-year financial plan. Finalising the plan is key priority for 2024 to support Chapter's priorities and ¢Jecisicffl.making for the next few years. Significant progress has been made durfing the year in relation ¢0 our plan5 for the restoration of Leaden Hall to be Ltsed for Cathedral offices, meetings rooms. our work with children and young people and a purpose-built Archive facility. In November 2023 the Dean and Chapter Clerk Ichief Operating Officer) facilitated inlomiation sessi￿$ on the proposed plèns for the site with staff and volunteers along with representatives frrym the Close Residents Assoclation Committee. Salisbury Civic Society. the Close Preservation knety as well a5 local councillors. The full planning application wa5 submitted to Wiltshire Council Planning Department in February 2024. SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 The Cathedral has also progre55ed a numb¥ of smaller projects relating to vacant property vrithin the Cathedral Close, in particular Nos. 17 ZO the Close which need restoration before they can be used. Inevitably the pandemic delayed this w(wk. twt significant progress has been made dwing the year. This has been supported by aNJointment of a new Chief Financial Officer in 2023 and the Cathedral's new in.h(￿Se Property Manager. The Cathedral uses it5 financial resources to SUPFrt)rt a reBular. plarned repairs and malntenance programme for Close properties. The Cathedral coniinues to undertake Tts responsibilities in full as a landlord and as a provider of service occuparKy accommodation, by monitoring. repairing and enhanang its properties, and to manage its incTrTt and historic assets in line with charity Law and the requirements of the Church Commissioners in suppyt of (Mjr long tenn goals. In additiC￿ to routSne expenditure propertles we have also identified finances to a5515t with the restoration arKI reuse of larw property projerts vthich VAII take more than a year to complete. systematic review Iibinquennial Inspectlonl of the p￿liC parts of the Close infofflis the prioritisation of future repairs and upgrade5 to the street fumiture aThJ amenities which we provide for all. During the year a ThJmber of delayed projects have been progressed most notably improving the hard standlng ourside the entrance to the Work5 Yard and the restoratlon of streetlamps around the C105e. The Cathedral is committed to worklng towards the Church of England Net Zero targets. Carbon reductlon and related justice iss￿5 are a strategic objective in ow new Strategic Plan. In support of our important wort( in this area a new Envirmment Committee was established in 2023. It has a particular focus on carbon reduction arNJ the unique ecologlcal setting of the Cathedral. C105e properties and landscape. We contlnue to develop our action plan to reduce ¢JJf consumption of carbon. Having completed the replacement of exterior lights to the Cathedral Wbth LED fittings. a scheme has been develyd for completing the same work to the Cathedral Interior. We have continued exploratory work on alternative heating s￿rCeS for the Cathedral building itself, commlsslcming reports from specialist crffisultants seeking advlce frc¥m the Church Commissioners. We are a150 c(￿rnItted to installing the first phase of electric vehicle charging on Cathedral land within the Close. Thls has taken l(ryer than we had h(￿1 to the progress of a planning application to secure pemlisslons. The Cathedral Close is a place where rnany like to gather and that presents opportunities and challenge5. During the year under review, the Close continued to provlde a welcoming, open green space which was used by tIM)u5ands of people from the local community and Trrisitors from far and wide. The Cathedral has continued to retain an external, dedicated, tral￿d security team WIKJ have provlded a welcome and reassuring presence. In addition, the new Missioner for Yomg People took up post In March 2024 and one of his resp(msibilities 15 to deveLq) our engagement with the young people WI￿ Ilke to visit and spend time in the Close. Working Together The Cathedral's staff and our many volLm¢eers work tirelessly in support of the Cathedral's priorities aspirations. We cannot do all that we do without the skills, expertise and commitment of our Staff or the time given by our many volimteers across all areas of the Cathedral's life. Whether it's the beautiful floral arrangements created by our Flower Arrangers or the care of our vestments by the Salntly Stitchers or the maintenance of our gardens (to mention just a handful of our volunteer teams) It all matters. The pandemic brought many challenges but also showed us we ccyjid work in different ways and that has contlnued. The online visitor booking system is now embedded and providing us wSth management infomatlon that we have wanted for a Th￿ber of years. We are able to offer reserved seating for events and concerts and advance visitor tKX)king. Nonetheless many people coming to the Cathedral do not b￿k in advance and therefore we continue to employ seasonal staff to SLPPOrt during the times we are busier. The changes in workiro practices that arose during the pandemic have become embedded In our operatlonal wot*ing arrangements. We have a hybrid working policy and staff in Suitable Jobs are SALISBURY CATHEDRAL 5T YEAR ENDED 31 hlARCH 2024 able, with the agreement of their manager. to work frc*m ￿Me. Although our Staff generally wefei to work on site, the option land technical capabilityl to now work frorn IM)me continues to be appreciated. Our new Strategic Objectives incltKie which recognises the importance of supporting and developing our staff and volunteers so that they flourish. We have started developing a new human Tesources strategy to assist us in taking this objective forward. Chapter ar￿ the ExKutive Team have benefited from development funding provided by the Church Commissioners Leadership Development Team. We ￿11 be implementing development training for our staff and volunteers, some of which commenced in early 2024 in relation to equality. diversity and inclusion and will continue in 2024125. We are grateful io staff within Wiltshire Police for the security trajning they have provided for us over the course of the last year. Caring for those who come to the Cathedral and C105e. and ensuring ihat children and young people as well as vulnerable adults are effect7vely Safeguarded. is very important to us. The Cathedral and Salisbury Diocese were the f7r5t to be audited in early 2024 as part of the next round of independent safeguarding audits commissioned by the Church of England. It was an extensive and robust process for all involved. We were pleased therefore that the audit rewrt noted.. "there is o commitment to create an envirorunent where people con come tosether. to VlSlt, work, worship ond thrive -senior leaders demonstroted a ￿lf1r￿sneSS to open themselve5 to direct challense, the reol strength in Salisbury is its people their sreotest overall strength and potential lies in the fact that Salisbtsry's st7fesuarding proctice is built on o foundation provided by t1￿1r in.house professional 5a[eguardins teom" The 202312024 year has been a busy one. with many things to celebrate and also notable challenges. As always, the contribution5 of our staff have been remarkable. They approach their work with energy and prolessionalism ¥vhether in dealing with the unexpected or the (lay-to-day operational llfe of the Cathedral. We continue to be grateful for their cownmitment and resolve. We are also thankful for the continued 5UPPOrt of all our Yolunteers wthout whom we could not offer the wide range of opportunlties we do for all who come to the Cathedral. whatever their reason for th)ing so. Public Benefit The Cathedral became fully registered wth the Charity Commission in April 2023. Thi5 date is at the start of the timeframe of this reEK)rt and the Cathedral has reported in accordance with the Charity Commission for England and Wales. guidance on p￿11( benefit and the Charities Act 2011 for the year ended 315t March 2024. The Cathedral no¢ only Serves the community daily in its religious and charitable work but is an active resource of national importance in the promotion of religion. music, education, history, and architecture. The earlier sections of this reFN)rt descrlbe the Cathedral's activities during 202312024 and the impact they have had. Financial Review & Reserves The Cathedral achieved a strong financial perfomiance in 2023124. exceeding both rhe previous year's results and initial expectations. Income levels were robust. leading to a surplu5 in unrestricted l￿d5 for day-to-day operations. This success underscores the Cathedral's ongoing commitment to prLMlent exper)diture management across all departments. erall there was a £0.4m surplus in unrestricted fund5 driven by better thar) expected visitor income Additionally, thanks to the generosity of donors and grants received, both during the year and previously, the Cathedral was able to fwd Significant expenditure from its restricted funds given for specific purposes. These funds showed a deficit for the year. wth expenditure exceeding current income by £0.6 million as funds received in previous year5 were drawn on and Spent in accordance with the wishes of the donor5. 10 SALISBURY CATHEDRAL ST YEAR ENDED 31 IAARCH 2024 The increase in income was driven by several factors. incl￿17￿8 a significant rise In visitor numbers, particularly from American tourist5 during the peak summer season. which generated an additional £0.5 million. The Cathedral has rthv surpassed pre-pandemlc visitor numbers. boosting income not only from admi55ions but also from the shop and refectory. A5 always. there were both increases and decreases within the overall c05t base. However, the primary driver of increased expenditure was the Cathedral's decision to award a 7% pay rise to Its staff, helping to alleviate the ifflpact of rtsing living costs natiomyfjde. Additionally. the Cathedral upheld its commitment to paying the Real Livlng Wage. ensuring fair compensation for all employees. The Cathedral'5 investments saw notable fI￿tuall￿$ throughwt the year. ￿￿th a str(mg recovery in the final quarter of 2023 resulting in a E2.5 Millic￿ growth in the overall investment portfolio for the year. The outlook remains rKJsltive. with expectations that interest rate5 have peaked. Investment Income also saw an increase of £0.2 milliw. contr7t￿Ing to the Cathedral's total Income of £1.4 million from Investments. By the end of the year. the Cathedrals total funds were £2.3 million higher than at the start. Thi5 largely reflected the positive investment market movements and a gain in the value of a property which was transferred from operational to investment use. Thls str￿4 financial performance posltfL￿S the Cathedral weil to athieve its future goals. including ongoing investment in its extensive property Portfolio to enxre high standard5 of refurbishment. The Cathedral a150 remains dedicated to advancifftg eco-frlendly initiatives aimed at significantly reducing its carbon footprint. Both of these critical areas are incorporated into the 2024125 budget. Investments No Cathedral properties have been dist#)sed of in the year ended 31st March 2024. One property was retumed to the Cathedral following the death of a longstanding leaseholder. Dwing the year the Cathedral completed the proc￿ of extending Sarum St Michael leases and the realised gains on investment properties for the year include the monies received as a result of this. hs noted above. one property was switched from being an operational woperty to an investrnent property and the property wa5 revaI￿d. The unrealised gain on investment properties is a result of this switch. The Chapter also considered the market valuation of the other properties held for investment and decided that no changes In the Valuatiry￿ were necessary. The capltal value of the Cathedral'5 Investment tkntfotio fluttuates from year to year. At 315l March 2024. this gave rise to an unrealised gain of C2.5 million in line with the fluctuations on the global stock market5. The prlmary purpose of the investment portfolio 15 to generate income to 5UPPOrt the mi55Ton and activities of the Cathedral. As referred to below only the inc¢Jme and not the capital can be used to fund the Cathedral day-to-day expenditure. The Cathedral a(kspts a balanced approach to investment, seekiw real growth in capital and income, wth an objective of achievlng an overall annual retum over the long term of 5% above inflati1￿ whilst generat?ng predictable and sustainable income from the portfolio. For the year 23124 the Cathedral's main investment fund returned 12.14% (net of costs}. well ahead of its CPI + 5% objective18.2%1 and the *RC Steady Growth peer group 19.4%) but lagged its composite irKlex comparator116.7%1. The Cathedral's trustees were satisfied wlth the investment fund's wformance in the year. The investment objectives are athievefl through a balanced portfolio of equitie5. alternative5, property, and cash. Given the long-tem horizon of the Cathedral. the investments are held in diversified multi-asset portfolios with an emFtha515 on equities and other real assets, deslgned to target both growth and income. A fluctuation in the capital value of the fund holdings may lead to unrealised gains or losse5 but wlll Th)t r￿esSarilY change their ability to generate income. 11 SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 Our portfolio is managed by professional investment managers, CCLA Investment Managers. and their performance is monitored on behalf of Chapter by the Cathedrals FinarKe Committee. The Cathedral has set an ethical investment policy {whlch draws M guidance given by the Church of Englandl. The CCLA [￿dS are fully compllant with the Churth of England's ethical investment policy. Funds The majority of the Cathedral's fund5 are held as endowment fun(k. Chapter complies with the restrictions imposed by the Cathedra15 Measure 2021 in respect of the permitted uses of the Cathedral's fund5. In particular. the capital of the endowment funds cannot be used for the ifflprovemer)t or deveioprnent of the Cathedral or its ancillary buildings without the express authority of the Church Commissioners. Only the inccThe. not the capital. can be used to meet ordinary expenditure. to fund the repair of the Cathedral itself or the repair of its investment properties. A significant part of the endowment funds consists of propertie5 in the Close. a number of which are let on long, tenant.repairing leases. The bala￿e of the endowment is held in the investment portfolios and in cash. Expenditure during the year from the endowment funds was incurred on the inve5tfflent properties and on managing the investment portfolios. These transaction5 resulted in a net cost to the endowment funds of É280.833, before the realised and unrealised gains on properties and unrealised gain on the revaluatTror) of the investment portfolio were tak￿ into account. The Cathedral holds a range of individual fl￿d5 that are restricied as to their use. Further detail on these is given in Notes 15 to 18 to the Accounts. The income f ri)m variou5 sources into these fund5 has been matched in most cases by expenditure during the year. although it must be noted that the Cathedral records gifts in the year in which they are received even wttre the expenditure that they are intended to fund is incurred and therefore recorded in subsequent years. Inevitably this accounting requirement leads to swings in income and expenditure. One of the most impM)rtant restricted funds is heid for the maintenance of the fabric of the Cathedral. This helps to fund the fabric repair programme that continues. The balance of the f￿r￿S of the Cathedral are unrestricted t￿th as to capital and income and can be used to further any of the purpcise5 of the Cathedral. Policy for Unrestricted Funds The Cathedral's unrestricted fl￿d5 are available to carry out its day-to.day ministry, education, and outreach activitie5 together with the basic upkeep of its buildings and precincts. The income is principally derived from visitors, congregations, property rents, investmenis, and trading activitles. Given the potential for fluctuations in these income streams that are largely outside of its control, Chapter has agreed a policy of seeking to maintain in unrestricted funds an amount at least equivalent 10 eight months-worth of annual expenditure charged to the unrestricted funds in the prevlous year. At 31" March 2024, the Cathedral had th)restricted funds of E4.4m which would be sufficient to meet over eleven months. worth of annual expenditure of £4.7m. This gives the Cathedral sowne back-up resources in order to maintain necessary activities in times of income shortfall. It has stood the Cathedral in good stead through the time of the Salisbury poison attack in 2018 and the Covid-19 pandernic. Only unrestricted expenditure is taken into account on the basis that any expenditure in respect of the restricted funds and the endowed funds is only incurred if funds are available for that specific purpose. 12 SALISBURY CATHEDRAL ST YEAR ENDED 31 MARCH 2024 Current Challenges and Looking Forward The financial year 2023124 saw a much Str￿er uplift in visitor numbers. a￿1 therefore vlsltor. related income, than envisaged at the start of the fIna￿la[ year. We have been very pleased to see visitor numbers continue to return so strongly. However, we know that there are a number of ongoing challenge5 that will need to be addressed in 202412025 and beyMd. One of these key challenge5 is achieving the Church of England's Net Zero Target. The Cathedral has already completed several projects that mark important progress toward this goal and in 2024125 we will be re-lamping the Cathedral interlor with LEDS to continue the Journey. However, to fully meet the target. we recognize that introdLKing alternative heating systems is essential. Thi5 is a significant endeavour, requiring substantial financial investment. While we are actively working with specialist ¢on5ultant5 on the exploratory pthase. the funding for this project remains uncertain. Other projects we are looking to undertake in 2024125 incl￿ rero)firv4 the Refectory. and creating a new enclosure for the Magna Carta vrithin the Chapter House. As we look ahead to 2024125, external visitor data frun the Association of Leading Visitor Attraction5, along our