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2025-03-31-accounts

THE CATHEDRAL CHURCH OF CHRIST, BLESSED MARY THE VIRGIN AND ST CUTHBERT OF DURHAM

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025

Registered Charity Number 1205971

Durham Cathedral Accounts for the year ended 31 March 2025

The Cathedral Church of Christ, Blessed Mary the Virgin and St. Cuthbert of Durham (“Durham Cathedral”) is a Christian Church of the Anglican Communion, the shrine of St Cuthbert and the seat of the Bishop of Durham. It is a focus of pilgrimage and spirituality in North East England.

Our Mission

Inspired by our saints, Cuthbert and Bede, the mission of Durham Cathedral is to offer everyone the opportunity to encounter God and know God’s love in Jesus Christ.

Our Vision 2033

We have identified four priorities for us as a cathedral looking ahead to 2033. In 2033 we want Durham Cathedral to be known locally and internationally as:

In each of these areas, and in the vital enabling priorities which underpin them, we have identified specific goals for the years 2025-2027, so that we can work together on seeing our vision becoming a reality. Our prayer is that Vision 2033 will enable more people to be impacted positively by the story of Durham Cathedral, its saints and the faith that inspired this extraordinary building.

What We Do

The Cathedrals Measure 2021-which has underpinned the governance of Durham Cathedral since August 2023, sets out provision around the governance, management, property and financial affairs of Cathedrals. It sets out the following three objects of a Cathedral which define what we exist to do:

  1. 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;

  2. Care for and conserve the fabric and structure of the Cathedral church building;

  3. Any other charitable purposes which are ancillary to the furtherance of these two purposes.

The operational and management structures of the Cathedral are aligned to these Objects.

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Durham Cathedral Accounts for the year ended 31 March 2025

Our Values

Our values help guide us in recognising how we fulfil our vocation as a Cathedral. They reflect the qualities we believe are essential to our life and work as a 21st century cathedral. We use them to highlight the necessity of working in ways motivated by wisdom, responsibility and ethics. In all things, we are inspired, motivated and challenged by the Christian faith and the values of the Gospel.

Spirituality

We recognise and respond to God’s presence in our world and among us, practicing a reflective approach to what we do.

Respect

We recognise the image of God in all human beings, honour their dignity and treat them with courtesy.

Justice

We deal fairly in our personal and collective behaviours, work to the highest ethical standards, and are honest in our speech and behaviour. We think, speak and act with integrity, are professional in our conduct, and are publicly accountable for our actions.

Collaboration

We are a community founded on trust that prizes teamwork and builds partnerships that contribute to the common good.

Sustainability

We recognise and respond to God’s presence in our world and among us, practicing a reflective approach to what we do.

Welcome

We are welcoming and hospitable to all. We show Christian love and care to our guests and those who need our help.

Aspiration

We are an outward-facing Cathedral that reaches for the future with energy and courage, and reaches out to our communities in the hope of personal and social transformation.

Constitution

The Cathedral is governed by the Constitution and Statutes of the Cathedral Church of Christ, Blessed Mary the Virgin and St Cuthbert of Durham, which were most recently amended on 4 August 2023.

The Cathedral is an ecclesiastical corporation and a registered charity (number 1205971).

The Chapter

The members during the year were:

The Very Revd Dr Philip Plyming The Dean The Revd Canon Michael Hampel The Revd Canon Charlotte Allen The Revd Canon Michael Everitt (resigned 3 August 2025) The Revd Canon Professor Simon Oliver Canon Andrew Thurston (resigned 12 December 2024) Canon Paul Chandler Senior Non-Executive member of Chapter Canon Dr Maria Cockerill Canon Jonathan Ward

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Durham Cathedral Accounts for the year ended 31 March 2025

Canon Professor Stefanie Sheen Canon Dr Apollo Tutesigensi Canon Alice Ambrose-Thurman

(appointed 6 October 2024) (appointed 6 October 2024) (appointed 22 January 2025)

The Executive Leadership Team

Mr Guy Sampson Chapter Clerk & Chief Operating Officer Mrs Jayne Manns Chief Officer: Finance ( resigned 6 September 2024) Mr George Carter Chief Finance Officer (appointed 1 March 2025) Mr Andrew Usher Chief Officer: Visitor Experience & Enterprise Dr Matthew Mills Head of Development (resigned 4 March 2025) Mrs Susie Doyle Director of Development (appointed 30 April 2025) Ms Caroline Hayward Head of Human Resources Ms Clare Knowles Head of Marketing and Digital Mr Michael Corkhill Head of Facilities Mr Gary Holliday Head of Works Ms Hannah Ellis Head of Enterprise Mrs Rebekah Best Head Verger Mr Daniel Cook Master of the Choristers and Organist

In addition to these, the residentiary clergy who have executive roles complete the other members of the ELT:

The Very Revd Dr Philip Plyming The Revd Canon Michael Hampel The Revd Canon Charlotte Allen The Revd Canon Michael Everitt

The Dean Vice-Dean and Canon Precentor Canon Chancellor Canon Pastor (Resigned 3 August 2025)

The College of Canons

The members during the year were:

The Very Revd Dr Philip Plyming The Revd Canon Charlotte Allen The Revd Canon Michael Everitt The Revd Canon Michael Hampel The Revd Canon Professor Simon Oliver Canon Paul Chandler Canon Alice Ambrose-Thurman Canon Dr Maria Cockerill Canon Andrew Thurston Canon Jonathan Ward Canon Dr Maria Cockerill Canon Jonathan Ward Canon Professor Stefanie Sheen Canon Dr Apollo Tutesigensi The Revd Canon Ann Anderson The Revd Canon Katharine Bagnall The Revd Canon Sheila Bamber The Revd Canon Dr Alan Bartlett The Revd Canon Tom Brazier The Revd Canon Kate Brooke The Revd Canon Anna Brooker Canon Dr Jocelyn Bryan

`

The Dean

(Resigned 3 August 2025)

Senior Non-Executive member of Chapter (appointed 22 January 2025)

(Resigned 12 December 2024)

( appointed 6 October 2024) (appointed 6 October 2024)

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Durham Cathedral Accounts for the year ended 31 March 2025

The Revd Canon Janet Burbury The Revd Canon Dr Nichola Carla Chater The Right Revd Sarah Clark The Revd Canon Steph Clark The Venerable Robert Cooper The Revd Canon Caroline Dick The Revd Canon Adrian Gatrill The Revd Canon Yvonne Greener The Revd Canon Alec Harding Canon Dr James Harrison The Revd Canon Eileen Harrop Canon Professor Mike Higton The Revd Canon Colin Jay The Revd Canon Paul Kennedy Canon Susan Marshall Canon Dr Margaret Masson The Revd Canon Mark Miller Canon James Morgan The Revd Canon Remi Omole The Revd Canon Dr Emma Parker The Revd Canon Sarah Parkinson Canon Andrew Rogers The Venerable Richard Simpson Canon Frances Stenlake The Revd Canon Matthew Paul Tarling The Revd Canon David Tolhurst The Revd Canon Paul Tyler Canon Margaret Vaughan The Venerable Elizabeth Wilkinson The Revd Canon Keith Woodhouse The Revd Canon Gavin Wort Canon Nigel Wyrley-Birch

Bishop of Jarrow Archdeacon of Sunderland

Archdeacon of Auckland

Archdeacon of Durham

In attendance: Mrs Eva West Ms Sian Bell

( resigned 22 September 2024) Secretary from 3 March 2025

Fabric Advisory Committee

The members during the year were:

Mr Humphrey Welfare Mr Andrew Boyce Dr Mary Brooks Ms. Sarah Brown Mr David Carrington Mr Colin Haylock Dr Julian Luxford Mr Thomas Pearson Mr Martin Roberts

Chair

In attendance:

The Revd Canon Michael Everitt (resigned 3 August 2025) Ms Alison Cullingford

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Durham Cathedral Accounts for the year ended 31 March 2025

Mr Norman Emery The Revd Canon Michael Hampel The Very Revd Dr Philip Plyming Mr Guy Sampson

Mrs Eva West (resigned 22 September 2024) Ms Sian Bell Secretary from 3 March 2025

Audit and Risk Committee

The members during the year were:

Canon Alice Ambrose-Thurman

Ann Hall Canon Dr Maria Cockerill The Revd Canon Michael Everitt Catherine Winfield MIchael Weaver

Chair from 5 September 2023 (resigned as Chair 22 Jan 2025 upon becoming a member of Chapter) Chair from 6 March 2026

(Resigned 3 August 2025) From 30 July 2024 From 30 July 2024

In attendance:

Mrs Jayne Manns Mr Guy Sampson Mr George Carter Canon Andrew Thurston Mr Simon Still Mrs Eva West Ms Sian Bell

(Resigned 6 September 2024)

From 1 October 2024 (Resigned 12 December 2024) Special Advisor to the Committee Secretary (resigned 22 September 2024) Secretary from 3 March 2025

Investment and Property Committee The members during the year were:

Mr John Newlands Chair The Hon. Canon James Ramsbotham (resigned 25 June 2024) Mr Harry Swan (resigned 25 June 2024) Canon Andrew Thurston (resigned 12 December 2024) Mr Edward Peat Steven Hall From 11 July 2024 Mark McKelvey From 11 July 2024 In attendance: Mrs Jayne Manns (Resigned 6 September 2024) The Very Revd Dr Philip Plyming Mr Guy Sampson Mr George Carter From 1 October 2024 Mrs Eva West (resigned 22 September 2024) Ms Sian Bell S ecretary from 3 March 2025

From 1 October 2024 (resigned 22 September 2024)

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Durham Cathedral Accounts for the year ended 31 March 2025

Finance Committee

The members during the year were:

Canon Andrew Thurston (Chair)

(resigned as Chair 15 October 2024) (resigned 12 December 2024) Chair from 22 January 2025

Canon Alice Ambrose-Thurman (Chair) Mr William Baker Baker Mr Jonathan Brown The Revd Canon Michael Everitt The Hon. Canon James Ramsbotham Canon Jonathan Ward

(resigned 3 August 2025)

Chair from 15 October 2024 (resigned as Chair 22 January 2025)

In attendance: Mrs Jayne Manns (resigned 6 September 2024) The Very Revd Dr Philip Plyming Mr Guy Sampson Mr George Carter From 1 October 2024 Mrs Eva West ( resigned 22 September 2024) Ms Sian Bell Secretary from 3 March 2025

From 1 October 2024 ( resigned 22 September 2024)

Strategic Safeguarding Committee

The members during the year were: Revd Canon Michael Everitt

(resigned as Chair 19 September 2024) Chair from 19 September 2024 (resigned 15 July 2025)

(resigned 3 August 2025)

Ms Karen Robb

The Very Revd Dr Philip Plyming The Revd Canon Michael Hampel Mr Guy Sampson Ms Caroline Hayward Ms Beth Miller Ms Sharon Lewis Ms Isabel Owens Mr Ian Haddick (resigned 12 July 2024) In attendance: Mrs Eva West (resigned 22 September 2024) Ms Sian Bell Secretary from 3 March 2025

(resigned 22 September 2024)

Nominations Committee

The members during the year were: Canon Paul Chandler Canon Dr Maria Cockerill Professor Adekunle Adeyeye The Hon. Canon James Ramsbotham Ms Sue Winfield The Revd Canon Professor Simon Oliver

In attendance: Mrs Jayne Manns (resigned 6 September 2024) Mr Guy Sampson Mrs Eva West ( resigned 22 September 2024) Ms Sian Bell Secretary from 3 March 2025

( resigned 22 September 2024)

Durham Cathedral Accounts for the year ended 31 March 2025

Title: The Cathedral Church of Christ Blessed Mary the Virgin and St Cuthbert of Durham.

Title:
The Cathedr		 al Church of Christ Blessed Mary th e Virgin and St Cut hbert of Durham.
Address The Cathedral Office
The College
Durham
DH1 3EH		 Investment
managers		 Cazenove Capital Management
Limited
12 Moorgate
London EC2R 6DA
Auditors Armstrong Watson Audit Limited
One Strawberry Lane
Newcastle
NE1 4BX		 Rathbone Investment
Management Limited
1 Curzon Street
London W1J 5FB
Bankers Barclays Bank plc
Barclays House
5 St Ann’s Street
Quayside
Newcastle upon Tyne NE1 3DX		 CCLA Investment Management
1 Angel Lane
London
EC4R 3AB
Sarasin & Partners LLP
Juxon House
100 St Paul’s Churchyard
London EC4M 8BU
Index
Page(s)
The Chapter’s annual report
9 – 16
•
Financial review
11 – 15
•
Statement of the Chapter’s responsibilities
15 -16
Report of the Auditors
17 – 19
Consolidated statement of financial activities
20
Consolidated balance sheet
21
Charity balance sheet
22
Consolidated statement of cashflows
23
Notes to the accounts
24 – 49

Definitions

Durham Cathedral Working name of The Cathedral Church of Christ, Blessed DCT Durham Cathedral Trading Limited DCOT Durham Cathedral Open Treasure Limited FY25 Financial year ended 31 March 2025 PYA Prior year actual

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Durham Cathedral Accounts for the year ended 31 March 2025

THE CHAPTER’S ANNUAL REPORT

The Chapter presents its report and the Cathedral’s audited financial statements for the year ended 31 March 2025.

Role and Organisation

Durham Cathedral, or to give it its full title, ‘The Cathedral Church of Christ, Blessed Mary the Virgin and St Cuthbert of Durham’, is a Christian Church in the Diocese of Durham and the Church of England. It is the home of two prominent northern saints, Cuthbert and Bede and a focus of pilgrimage and prayer in North East England. The Cathedral’s governing Constitution and Statutes were most recently amended on 4 August 2023, in accordance with the Cathedrals Measure 2021.

The Chapter is the governing body of the Cathedral, providing strategic direction and oversight. The objects of the Chapter are, under the terms of the Cathedrals Measure 2021, to advance the Christian religion in accordance with the faith and practice of the Church of England, in particular by furthering the msion of the Church of England, to care for and conserve the fabric and structure of the Cathedral Church building, and to advance any other charitable purposes which are ancillary to the furtherance of the above two purposes.

Chapter is formed of both clergy and lay people who act as executive and non-executive members respectively. The Dean and all Residentiary Canons are executive members. The Bishop appoints a non-executive member who is not a Residentiary Canon to serve as Senior Non-Executive Member. The Chapter, with the approval of the Bishop, appoints further non-executive members, and the Chapter must have more non-executive than executive members. As of 31 March 2025 there were six non-executive members (including the Senior Non-Executive Member). The Chapter is chaired by the Dean.

All new Chapter members are encouraged to undertake an Association of English Cathedrals Programme of Induction, which provides training covering Cathedral legislation, governance, Cathedral finances and property management.

Chapter met seven times in the course of 2024/2025.

Chapter is further supported by the committees listed on pages 4 to 6 of this document as well as by the Executive Leadership Team which makes operational decisions under the delegated authority of the Chapter. In addition, the work of Chapter is supported by over 400 volunteers, providing approximately 44 full time equivalent roles across a range of positions within the Cathedral.

The members of Chapter would like to acknowledge and thank all members of the bodies that have supported its work over the past year; their contribution has been invaluable to the achievements set out in this report.

The Chapter of Durham Cathedral plays an active role across the Diocese of Durham supporting the work of the Bishop, sharing our skills and knowledge, and working with communities and partners to further our mission. The Dean is a member of the Bishop’s Leadership Team. Chapter works with the Diocese and Parishes to promote the role of Durham Cathedral as a place of pilgrimage and spiritual renewal in North East England.

Public benefit

Chapter confirm that they have complied with section 4 of the Charities Act 2011 to have regard to the public benefit guidance published by the Charity Commission determining the activities of the Cathedral. The Cathedral not 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.

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Durham Cathedral Accounts for the year ended 31 March 2025

Operational Review

The financial year 2024/2025 was a year of significant ongoing development at Durham Cathedral. Key to this was the development of Vision 2033, the Cathedral’s vision and strategy for the years leading up to the 900[th] anniversary of the building’s completion in 1133. Over 200 internal and external stakeholders contributed to the consultation process, which led to the soft launch of Vision 2033 in February 2025 and its full launch in June 2025.

Vision 2033 is focused on four priorities – Encountering God: Pilgrimage, Prayer and Proclamation, underpinned by the enabling priorities of empowering our people, growing our resources and caring for our fabric and collections. Key goals have been identified for the period 2025-2027 and these inform the Cathedral’s strategic planning.

The governance of Durham Cathedral was further strengthened by the appointment of three new non-Exec members of Chapter: Prof. Stefanie Sheen, Dr Apollo Tutesigensi and Alice-Ambrose-Thurman (replacing Andrew Thuston as Canon Treasurer). George Carter also joined the team as Chief Finance Officer, replacing Jayne Manns who stepped down in September 2024.

The Cathedral was honoured to be invited to serve as the host for the Office of the Royal Maundy which took place in April 2025. The six months prior to this was thus a time of significant preparation for the visit of HM The King and HM The Queen and while their visit took place outside the reporting period for this annual report, it can be noted that it was a great success.

Alongside the regular rhythm of worship and prayer, the following represent key highlights / achievements of the financial year 2024/2025:-

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Durham Cathedral Accounts for the year ended 31 March 2025

Financial review

These accounts have been prepared in accordance with the Charities (Accounts and Reports) Regulations 2008.

The accounts have been prepared in thousands of pounds, and this may result in rounding differences of £1k.

Income

Income from donations and legacies totalled £1,545k, a slight increase on the FY24 total of £1,367k. This increase is largely driven by the addition of £329k of assets transferred to the Cathedral in a Restricted Fund to support ‘Raising a Voice’. Other variations include a reduction in income from legacies (£35k vs £216k), but a noticeable increase in the amount of tax recoverable from the Gift Aid scheme (£162k vs £46k).

Grants in support of mission increased from £798k in FY24 to £809k in FY25 primarily due to the higher payment made by the Church Commissioners in connection with the residential Canons & Dean now that staffing is at a full complement for the whole year.

For the 2024/5 financial year, all ‘Events’ activity was moved from being directly overseen by the Cathedral to part of the activity of the subsidiary company Durham Cathedral Trading. This change was necessary due to the fact that as the income from Events continues to grow it is appropriate that this is properly captured within a corporate entity for tax and VAT purposes. However, as a result of this change, some of the income which in the prior year was recorded as ‘facility fees’ and ‘charges to visitors’ now being shown as ‘income from trading activities’. On a like for like basis, facility fees were higher in 2024/25 than the prior year, but charges to visitors were lower (mainly due to Tower income reducing and less fee income from organ recitals). In aggregate, income across all these areas was slightly up on the prior year (£1,493k vs £1,440k).

Total income is £5,869k, 2.0% higher than the prior year. The increase of £113k is less than maybe expected when allowing for the additional income for Raising a Voice noted above. It should be noted that this is largely explained by the ~£125k less sundry income relating to the Gaia event which took place in 2023/24 but not this financial period.

Expenditure

Overall expenditure increased by 6.3% from £7,354k to £7,817k. However, core costs were modestly lower, with over£600k of additional expenses being accounted for by the increased spending on repairs, maintenance and upkeep of both the investment properties and the Cathedral & precincts, which together increased from £2,167k to £2,776k. This is part of a wider strategic plan to increase spending on necessary maintenance which had been left undone in previous years, and includes the ongoing committed spending on the Chorister School. The financial plan to fund these works is covered below under the ‘Financial Strategy’ section.

11

Durham Cathedral Accounts for the year ended 31 March 2025

Net gains on property and investments are £1,122k (FY24: £10,477k). The prior year’s figure was unusually large due to the sale of property at a significant premium to its book value. The gains in the 2024/5 year arose largely from mark-to-market adjustments in the valuation of the investment portfolio. As at year end financial markets had slumped materially from highs in late January, but have since recovered most of those losses. Nevertheless, for the financial year, the investments provided a capital return over and above the income received.

Going Concern

Chapter has considered the current position of the Cathedral and is satisfied that the Cathedral will continue to be able to meet its liabilities as they fall due. Notwithstanding the overall loss for the year, Chapter notes that a significant portion of this relates to the charge on disposal of assets that no longer have economic value. Additionally, some expenses are one-off in nature relating to capital projects, and furthermore the Cathedral has a strong expectation of further capital gains to be made from the future sale of property assets which will both fund future projects directly and also increase the size of the endowment thereby generating higher future income.

Financial strategy

Chapter has agreed the broad structure of the financial strategy that will operate over the period over which Vision 2033 is delivered, and beyond. Under this strategy, Cathedral income and expenditure will be managed within two distinct ‘Revenue’ and ‘Capital’ budgets.

Under this strategy, capital receipts arise from increases in investment asset values largely associated with property disposals for development at above existing use value. The Cathedral’s strategy is that the proceeds from any property sales will be treated as follows: Firstly, the current balance sheet value of the asset will be reinvested back into the property part of the endowment investment portfolio to maintain the revenue potential from property assets. Secondly, any ‘uplift’ in value will be split 50/50 such that half the proceeds will be invested with the permanent endowment investment funds to grow the asset base from which income is derived, and half will be allocated towards capital works on the Cathedral and ancillary buildings.

Reserves policy

Reserves are needed both to maintain the level of the Cathedral’s current activities and to enable the completion of long-term projects.

The Cathedral has a large pool of highly liquid investment assets (in excess of £33m is in liquid investment funds, cash and short term deposits). Furthermore, the Unapplied Total Return (£34.4m) can be utilised as Chapter sees fit, thus providing significant flexibility in balancing the needs of current and future expenditure. As noted above in the Financial Strategy section, Chapter anticipates that this figure will grow substantially over the next decade, thus increasing the financial security of the Cathedral.

However, as the reserves are significantly weighted towards equities in line with the Cathedral’s long-term timeframe and modestly high tolerance for risk, it would be undesirable to have to draw down on these assets at inopportune times. Accordingly, Chapter has determined that any drawdowns from UTR required for meeting annual budget requirements and money set aside for capital expenditure in a particular year will be held in interest bearing cash funds/accounts to avoid risk to falls in value in the short-term.

Accordingly, the Cathedral will always have sufficient cash required to meet its annual budget commitments.

Where specific future funding needs are identified, Chapter has the discretion to set aside free funds for designated purposes, those funds being declared as Designated Funds. Details of Designated Funds are given in Note 16 to the Accounts.

12

Durham Cathedral Accounts for the year ended 31 March 2025

Total return investment policy

A resolution was passed at the meeting of Chapter in March 2020 adopting a total return approach to investments.

At the time of the resolution, the Trust for Investment was determined at £20.6m based on the 1996 book value of endowed assets, adjusted for inflation and new capital received from that date to 31 March 2020. The value of the Trust for Investment will be increased annually in line with CPI to maintain its real value and applying the annual rate of CPI of 2.6%, at 31 March 2025 the value of the Trust for Investment was £26.3m (2024: £25.5m).

The income from the endowment’s cash, investment & property portfolios totalled £1.9m and was added to the endowment fund. This has been transferred (net of costs) to unrestricted funds in alignment with the financial strategy. In addition, a transfer has been made for the expected budget deficit in 2025/6 and the approved net income from investments and rental income for 2025/6. Finally, an adjustment has been made from the unapplied total return to the Surtees Restricted Fund to correct its balance. Overall, this results in a sum of £4.6m being transferred from the endowment fund to the unrestricted and restricted funds, and is shown as a transfer between funds within the statement of financial activities (see note 16).

Other realised and unrealised gains and losses on the disposal and revaluations of endowment investments and property amounted to a gain of £0.9m (2024: £10.5m) in the year.

After allowing for the increase in the Trust for Investment, the application of income to cover operating costs and the impact of remaining realised and unrealised gains and losses, the value of the unapplied total return at 31 March 2025 stood at £34.4m. (2024: £37.6m). Over time, Chapter will make further allocations of unapplied total return resulting from capital growth on a sustainable basis, balancing the interests of current and future generations.

Investments

The investment objective was revised in the previous financial year to be CPI+4% per annum after expenses over the longer term. This should allow Chapter to draw a sustainable sum of 4% each year whilst maintaining the real value of the funds over the long-term. Chapter will set a fixed drawdown from the portfolios at the start of each financial year based on this principle but using a smoothed asset figure to avoid large movements year-on-year from capital asset value movements.

During the year, Chapter carried out a full review of its non-property investments. This resulted in a thorough tender process being undertaken which concluded that:

Chapter determined that the two managers to be appointed would be CCLA and Sarasin with the transition to be completed by 31 March 2025. Subsequently Chapter became aware that CCLA was the subject of an acquisition and therefore decided it would not be appropriate to continue with the transition to them and instead Cazenove was retained but that the assets would be moved into their pooled vehicle (as per principle 2 noted above)

Separately, the Chapter is trustee for three separate independent trusts. The Academic Fund (previously invested with Rathbones and now invested with Sarasin), the Durham Cathedral Trust for the Relief of Poverty and the Durham Cathedral Trust for Education. These second two trusts were formed from the amalgamation of a number of longstanding and legacy trusts (sometimes referred to as ‘Special Trusts’) and were lodged with the Charities Commission after the end of the 2024/25 financial year. The investment assets for these Trusts remain invested with CCLA.

13

Durham Cathedral Accounts for the year ended 31 March 2025

Investment property

Durham Cathedral owns property to house clergy, staff, and Cathedral offices. Other property is held for investment purposes and is rented out on a commercial basis. The property portfolio includes commercial buildings, property rented to Durham Cathedral Schools Foundation for educational purposes, farms, houses and sundry property including garages and allotments.

The income return on the property portfolio is as follows:

The income return on the property portfolio is as follows:
Gross rental income
less non-recurring income
Adjusted income
Repairs & maintenance costs
Net income
Average capital value of investment properties -Note 1
Return on capital value		 FY25

£'000

1,196

-

1,196

(402)

794

29,027

2.74%
 FY24
£'000
1,280
-
1,280
(584)
696
28,818
2.41%

Note 1 - a weighted average has been used for the capital value in 2024, taking account of property sales during that year

Plans for future periods

The Budget for 2025/26 was approved in March 2025 by Chapter. The underlying assumptions reflecting the economic outlook meant that the budget shows an operating deficit of £620k, which will be met by a drawdown from the Cathedral’s Unapplied Total Return. A re-forecasting exercise will take place during the year.

Chapter remains committed to reducing the structural deficit as part of the wider financial strategy, and in a manner aligned with the overall organizational vision and strategy. Income growth, cost reduction and margin improvement remain high priorities for the current and future years.

Chapter has also provided a separate budget (funded from the UTR) for the delivery of the 2033 strategic vision which was formally launched at the hospitality week in June 2025. Whilst the strategic vision is an integral part of the day-day activities of the Cathedral it was deemed prudent to separately budget for this. The budget for 2025/6 was £159k.

In addition to the long-term endowment portfolios of property and investments, Chapter has also set aside two separate funds (currently held in cash) for i) Capital works and ii) Reinvestment of base capital value. The Capital works fund receives 50% of the value of any uplift in the holding value of a property which is sold (the other 50% of the uplift being invested in the long-term endowment investment portfolios). This Fund is used for supporting the ongoing major capital expenditure projects. The Reinvestment of base capital value fund receives the balance sheet value of any property sold. This is not intended to be a long-term holding, but rather is set aside to be reinvested in the property portfolio to maintain its real value and income generating power over time.

Chapter has also agreed that a capital budget envelope of £2.8m for FY26 as part of a longer-term plan for capital works that ties in with the recommendations of the Quinquennial Inspection of the Cathedral’s fabric. This work includes both the development work to bring existing assets back into commercial operation as well as noncommercial fabric repair. At this stage the larger projects are still being scoped, and this year’s work will contribute to more detailed costs and timeframes being identified.

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Durham Cathedral Accounts for the year ended 31 March 2025

Key Risks and Uncertainties

The principal financial uncertainty is unexpected repair work/damage to the Cathedral’s properties and land. With responsibility not only for the Cathedral church, but a number of other grade 1 listed buildings and heritage land around the Durham peninsula, large costs can arise in short time frames putting a significant pressure on cashflow and endowment assets.

In addition, the short and medium-term risk of above-inflation cost expansion (whether staff costs, driven by the labour-market response to cost-of-living pressures, or non-wage costs driven by external factors) make closing the gap on the annual revenue budget much harder. This problem was compounded this year by the Government’s imposition of higher NI costs for employers, which added nearly £100k p.a. to the Cathedral’s core operating costs.

The major risks to which Durham Cathedral is exposed are assessed on a regular basis based mainly on a specific risk register which covers most aspects of the organisation. The Chapter considers that systems are in place which mitigate those risks. Monitoring of risk is undertaken throughout the course of the year by the Chapter, the senior management team and the Audit and Risk Committee.

Investment powers

Under the Cathedrals Measure 2021, the Chapter may invest the Cathedral’s funds in the following categories:

Statement of the Chapter’s responsibilities

Collectively, members of Chapter are responsible for preparing the Chapter’s annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, Chapter are required to:

Chapter is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and

15

Reports) Regulations 2008 and the prowsions of the Constttution and Ststutes. They a￿ a150 responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In 50 far as the Chapter is aware: there is no relevant audit Information of which the audftor of Durham Cathedral and Its subsldlarles Is unaware,. and the Chapter members have taken all steps that they ought to have taken to make themSe￿e$ aware of any relevant audlt Information and to establish that the audr(or is aware of that information. Audltors Following a tender process last year. Chapter appointed Armstrong Watson Audlt Llmlted as audltors. On behalf of t The Very Revd Dr. Phllip Plymlng, Dean Canon Paul Chandler, Senior Non-Executlve Memberlvlce Chair of Chapter Date.. 18 November 2025 16

Durham Cathedral Accounts for the year ended 31 March 2025

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE CATHEDRAL CHURCH OF CHRIST, BLESSED MARY THE VIRGIN AND ST CUTHBERT OF DURHAM

Opinion

We have audited the financial statements of The Cathedral Church Of Christ, Blessed Mary The Virgin And St Cuthbert Of Durham for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

In our opinion the financial statements:

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Trustees' 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 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 Trustees 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 auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material

17

Durham Cathedral Accounts for the year ended 31 March 2025

inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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 Cathedrals Measure 2021 and Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees 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 Trustees 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 Trustees either intend to liquidate the Cathedral or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 auditors' 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

18

Durham Cathedral Accounts for the year ended 31 March 2025

We assessed the susceptibility of the Cathedral's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or noncompliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

Use of our report

This report is made solely to the Cathedral's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Cathedral's Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Cathedral and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Armstrong Watson Audit Limited

Chartered Accountants & Statutory Auditors Newcastle Date: 17 December 2025

Armstrong Watson Audit Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

19

Durham Cathedral Accounts for the year ended 31 March 2025

Consolidated Statement of Financial Activities for the year ended 31 March 2025

Note
Income and endowments from:
4
Donations and legacies
Grants in support of mission
Charges and fees in the course of
mission
Trading and chargeable events
Investments
Other income
Total income
Expenditure on:
5
Raising funds
Ministry
Education and outreach
Cathedral and precincts upkeep
Total expenditure
Net (outgoing)/incoming resources
before investment gains/(losses)
Net gains on investments
Net (expenditure)/income
Transfer between funds
Net movement in funds
Funds brought forward
16
Funds carried forward
16		 Unrestricted
funds
£'000
1,050
568
70
1,423
128
12
3,251
(1,732)
(1,540)
(383)
(3,126)
(6,781)
(3,530)
-
(3,530)
4,025
495
1,833
2,328		 Restricted
funds
£'000
494
111
-
-
24
-
629
(248)
(16)
(75)
(35)
(374)
255
225
480
603
1,083
7,186
8,269		 Endowment
funds
£'000
1
130
-
-
1,858
-
1,989
(402)
-
-
(260)
(662)
1,327
897
2,224
(4,628)
(2,404)
63,103
60,699		 Total
2025
£'000
1,545
809
70
1,423
2,010
12
5,869
(2,382)
(1,556)
(458)
(3,421)
(7,817)
(1,948)
1,122
(826)
-
(826)
72,122
71,296		 Total
2024
£'000
1,367
798
346
1,094
2,014
138
5,757
(3,166)
(1.316)
(358)
(2,514)
(7,354)
(1,597)
10,477
8,880
-
8,880
63,242
72,122

The consolidated SOFA for the year ended 31 March 2024 (by fund type) is included as Note 18.

The notes on pages 24 to 49 form part of these Financial Statements.

20

T￿￿arn Cathedfol A¢￿Unts forthe year ended 31 Marth 2025 ' Consolldated B•la"nce Sheet a5 at 31 Marth 2025 Note lJnrestrkted Re51rfcted fund5 Total funds 2025 Total lunds 2024 fvnds Axed assets Inve51ment assets Property Llsted lftve51mer 2,718 1.709 26,309 21,891 29.QZ7 23.U¥O 28.753 22,888 6b 4A27 48.2C#) 52.627 51,641 NorAn¥estm•nt aM•ts Propeny Inventory IntanKlble flxtd assets Tan851)le fixed assets 6.165 716 22 1,419 7b 116 716 Is 12 19 7d 911 1.030 631 8.301 8,322 Totslfixed ismts 1,030 5.058 60.928 59,963 Current iuets Stocks Debtors Short term depostts Cash at bank and In hand lrtra-fund loan 120 106 2.973 SIS 10.189 io 453 26S 8,671 298 746 9,151 1,656 3,115 1,078 1.7 1.335 2.188 9.234 14.788 13,783 Ll•bllliles du• wkhln on* yt•r Credf(ors Intra-fund kmn li 17S91 11551 11.1741 13.1151 .11,4841 13,IlSI Nèt ¢xirr•nt as￿$ 1,429 3.211 5,859 IOA99 12,299 Tot•1 aiMts14$5¢urrent Ilabllllles 1458 8,269 9),699 71h26 72,262 Uobllltlesdue after mor•thin one year Credllor5 12 11301 11401 2.328 8,269 71.296 72,122 Funds Unrestrl￿ed Rest￿cted Endowment 1328 1,833 7,186 63,103 8,269 f￿).659 Total fvnds 16.1 2.328 8,269 60.699 71,Z96 72,122 The fina ts ere approved by the Chapter on 18 November 2 5 and slgned on thelr behalf by: The Canon Paul Chandler Dean Senior Non-Executive Member/Vice Chalr of Chapter The notes on pagès 24 to 49 fomi part of these Financial Statements. Plyming

Durham Cathedral Balance SI￿et as at 31 Marth 2025 Note Unrestrtted fvnds Restrthd lunds Endowrnent lunds Totslfunds 2025 Total ftjnds 2024 £oo £'ooo Slxed assets Inv¢51ment •5s•ts Propertv Llsted Investments Investmeni In subsldlary 2.718 26.309 21,891 29027 25.599 28,753 22.888 6b 4.427 48.2QJ 52ffi27 51,641 Non.Imie5thient assets Property Inventory Intanglble flxed assets Tanqibielixed assets 7a 7b 7c 7d 6,165 716 17 221 115 715 12 12 19 io 125 631 7396 7.119 Total flx4d asxti 125 60m3 58.760 Curr•nt iM•ts Stocks Dèbtor5 Short term deptsslt5 Cash at bank and In hand Intra-fund loan Is 3,695 515 10,105 io 938 28 265 8,671 298 1,231 9.151 IN82 3.116 106 1.336 L078 9,234 14,984 14,330 U•bllltl•s du• wlthln on•y••r Credltors Intra.fufid loan li 15671 11551 12601 13,1151 11,4241 13.1151 N•t curr•nt Ill•bllltl•sll•sts IA16 3.211 5,859 10086 12,906 Totsl ajsets less current ilablllues 1,941 8,269 60,699 70.909 71,666 Uabllttles du• aft•r mor• than on• Credlto 12 11301 11301 11401 N•t •sg•ts L811 8,269 60,699 70.779 71,526 Funds UnrÈstTittèd Re5trkted Endowment 1,811 L811 8.269 64.568 1,480 6,943 63,103 8,269 Totsllunds 16.2 1.811 8.269 60.699 70.779 71,526 Thefln were approved by the Chapter on 18 November 2 25 and slgned on thelr behalf by.. Phillp Ptymin8 Canon P3ul Chandler Senior Non-Executive Membermce Chalr of Chapter The notes on pa8e5 24 to 49 form part of these Flnandal Statements. Dean 22

Durham Cathedral Accounts for the year ended 31 March 2025

Consolidated statement of cashflows for the year ended 31 March 2025

Note
Net cash outflow from operating activities
17.1
Returns on investments
Rents received net of costs
Interest and dividends received net of costs
Capital expenditure & financial investment
Purchase of investments
Sales and transfers of investments
Disposal of investment properties
Additions to fixed assets
Cash (outflow)/inflow before management of liquid resources
and financing
Management of liquid resources
Net (increase)/decrease in short term deposits
Financing
Repayment of loan
(Decrease)/Increase in cash
17.3		 2025
£'000
896
711
(15,848)
15,335
-
(20)
 2025
£'000
896
711
(15,848)
15,335
-
(20)
 £'000
(971)
1,607
(533)
163
(8,636)
-
(8,533)		 2024
£'000
696
460
_
(4,785)
4,650
8,882
(10)
_
£'000
(4,355)
1,156
8,737
£'000
(4,355)
1,156
8,737



5,538
179
-
5,717

The notes on pages 24 to 49 form part of these Financial Statements.

Note: The purchase and sale values for the year ending 31 March 2025 are materially higher than the previous year because the Cathedral moved between investment managers during the year.

23

Durham Cathedral Accounts for the year ended 31 March 2025

Notes to the accounts for the year ended 31 March 2025

1. Accounting policies

The accounting policies which affect items that are material in determining the financial position of the Cathedral and its subsidiary entities are set out below. These policies form part of the notes to the financial statements.

Basis of accounting

The financial statements have been prepared under the historical cost convention except for the valuation of investments and certain investment and non-investment properties that are carried at fair value. The financial statements have been prepared in accordance with the Charities SORP (FRS 102) – 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 (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.The accounts are presented in £ sterling, which is considered to be the functional currency, and are rounded to the nearest £’000.

The Cathedral is classed as a public benefit entity.

Basis of consolidation

The group financial statements consolidate the accounts of Durham Cathedral and its wholly owned subsidiary undertakings Durham Cathedral Trading Limited and Durham Cathedral Open Treasure Limited, all with financial year ends of 31 March. Transactions between group entities are eliminated on consolidation. No Statement of Financial Activities (“SOFA”) is presented for Durham Cathedral alone as permitted by the Regulations.

Going Concern

Having considered budgets and cash flow projections, the Chapter is confident that the Cathedral will continue to be able to meet its liabilities as they fall due for the foreseeable future and will have sufficient levels of liquid reserves to cover short-term fluctuations in income. Notwithstanding the overall loss for the year, Chapter notes that a significant portion of this relates to the charge on disposal of assets that no longer have economic value. Additionally, some expenses are one-off in nature relating to capital projects, and furthermore the Cathedral has a strong expectation of further capital gains to be made from the future sale of property assets which will both fund future projects directly and also increase the size of the endowment thereby generating higher future income. The Chapter therefore considers that it is appropriate to prepare the accounts on a going concern basis.

Incoming resources

All incoming resources are included in the SOFA when the Cathedral is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Proceeds from the sale of property under the terms of the Endowment are credited to permanent Endowment capital. Any charges incurred in the purchase of property for the Endowment are capitalised where appropriate.

Grants given towards the capital cost of assets are credited as income to a restricted fund and the depreciation of the asset acquired is charged against the fund over the useful economic life of the associated asset.

Grants awarded for revenue costs are credited to the SOFA when the Cathedral has entitlement to the grant, receipt is probable and the value of the grant can be measured reliably.

Legacies

The recognition of income from legacies is dependent upon establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Chapter has sufficient evidence that a gift has been left to it (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the legacy in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be when the expected cash amount to be distributed to Chapter can be reliably measured.

24

Durham Cathedral Accounts for the year ended 31 March 2025

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Expenditure on repairs, restoration and maintenance of the Cathedral is charged as incurred, with the cost of major repairs and restoration being charged against the Fabric Fund, a restricted fund as disclosed in Note 16. Expenditure on Investment Property is charged against revenue unless the work results directly in a substantial increase in the value of the property and also an increase in rental income when it is capitalised. Irrecoverable VAT has been added to the item of expenditure giving rise to it.

Allocation of support costs

The Regulations require allocation of the support costs to those activities which they directly support. Support costs have been allocated to departments on the basis of headcount.

Cathedral and Inventory

The Cathedral and Ancillary Buildings

The Cathedral is not valued in the financial statements on the grounds that it is historic and inalienable and being held for the continuing use and mission of the Cathedral. The Cathedral is a priceless asset and is insured at a value agreed with the Ecclesiastical Insurance Group, representing the cost of restoration and repair in the event of a serious loss but not complete rebuilding.

Inventory

Inventory assets relate to heritage assets acquired since 2002. Such assets are recorded in the balance sheet at cost.

Heritage Assets

The Chapter considers that obtaining valuations for all of the books, manuscripts and artefacts and other heritage assets in its care would involve disproportionate cost compared with the benefit derived by users of the accounts. Consequently no values are attributed to heritage assets in the balance sheet. Disclosure regarding heritage assets is given in Note 8.

The Chapter has a policy of retaining its heritage assets for the long term and cannot dispose of such assets held within Endowment Funds without the agreement of the Cathedral Fabric Commission for England (CFCE) and/or the Church Commissioners. Heritage items are generally acquired by donation.

Total return approach to investment

The Chapter passed a resolution on 23 March 2020 to adopt a total return policy in respect of permanently endowed funds. The Church of England (Miscellaneous Provisions) Measure 2014 received Royal Assent on 14 May 2014. This enabled Cathedrals to adopt a total return approach to investment.

This approach allows any increase in the value of an investment to be used as income. The decision was taken to ensure that Chapter invests in a way that has appropriate regard to the furtherance of its aims both now and in the future.

Chapter identified the relevant funds and apportioned it into the value of the original endowment (which forms the Investment Fund) and the unapplied investment return (which forms the unapplied total return). The calculation of the value of the investment fund on the date of adoption was based upon the book value of assets in 1996, adjusted for inflation and additions since that date. Chapter used their best endeavor to arrive at the value of the original endowment but acknowledge the inherent uncertainty caused by lack of records documenting ancient endowments.

All endowed investment returns are designated as unapplied total return until Chapter decide how it is to be used. At the discretion of Chapter, some of the total unapplied return may be allocated to the income fund to be spent on its aims.

Chapter may allocate an amount of the unapplied total return to the investment funds. The amount that can be allocated to the investment fund is capped. The cap is calculated by using the rise in inflation from a particular date, being either the date of resolution if no previous allocation has been made or date of the last allocation to the investment fund.

25

Durham Cathedral Accounts for the year ended 31 March 2025

Intangible fixed assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised when the asset is available for use. Amortisation is provided on all intangible assets so as to write off the cost of an asset over its estimated useful life as follows:

Software

20% pa straight line

Asset residual values and useful lives are reviewed at the end of each reporting period, and adjusted if appropriate. The effect of any change is accounted for prospectively.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation, less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price plus any further costs directly attributable to bringing the asset to its working condition for its intended use. Details of the basis of valuation adopted as at 31 March 2025 are given in Notes 6a and 7a.

Non-investment properties, which are occupied by clergy and lay employees of the Cathedral, the offices, library and stone yard are included at open market value at the last valuation date.

The Chapter considers that the properties (non-investment) need not be depreciated due to the policy of maintaining these assets to such a high standard that they retain a high residual value. Investment properties are not depreciated in accordance with FRS 102.

Equipment, plant and facilities are written off to the Revenue Account in the period in which the expenditure is incurred, except that capital expenditure (typically determined as being items with a cost in excess of £2,500) is capitalised at cost and depreciated over its useful economic life.

Depreciation rates

Capitalised tangible fixed assets are written off at the following rates:

Land and buildings 2% to 6.67% pa straight line Plant and equipment 5% to 33% pa straight line Fixtures and fittings 2% to 20% pa straight line Motor vehicles 25% pa straight line IT equipment 20% to 33% pa straight line

Investment properties

Investment properties are measured at fair value at each reporting date, with any changes in fair value recognised in the statement of financial activities incorporating income and expenditure account. Investment properties are not depreciated.

Financial Instruments

The Chapter only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, bank loans and loans to and from related parties, including fellow group companies.

Debt instruments due within one year are measured, initially and subsequently at the transaction price. Debt instruments due after one year are measured initially at the transaction price and subsequently at amortised cost using the effective interest method. At the end of each reporting period debt financial assets are assessed for impairment, and their carrying value reduced if necessary. Any impairment charge is recognised in the statement of financial activities incorporating income and expenditure account.

Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/ (losses) on investments” in the statement of financial activities incorporating income and expenditure account.

26

Durham Cathedral Accounts for the year ended 31 March 2025

Stock

Stock is valued at the lower of cost and net realisable value.

Fund accounting

Endowment funds are funds which are held for the permanent benefit of the Cathedral.

Chapter has adopted a total return approach to investments, the permanent endowment. Assets are invested to produce an investment return without regard to whether that return is in the form of income or capital appreciation. An allocation is made each year from unapplied total return to Trust for Investment to ensure that the capital value of assets in trust are not eroded over time.

Gains and losses on the sale of properties and investments and changes in the value of properties and investments, together with any related costs, are transferred to the Endowment Fund which has been designated as a separate fund not available for allocation as part of the surplus for the year. Chapter may, however, determine which part of the unapplied total return may be applied for the purposes of the Cathedral and which part should be available for accumulation as part of investments.

Restricted funds are funds that can only be used for particular restricted purposes within the objects of the Cathedral. Restrictions arise when specified by the funder or when funds are raised for a specific purpose.

Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the Chapter.

Designated funds are funds set aside by the Chapter out of the unrestricted general fund for specific purposes or projects.

Trusts where Durham Cathedral acts merely as custodian trustee with no control over management of the funds are not included in the financial statements but are summarised in the notes to the financial statements.

Pensions

The Chapter operates a stakeholder pension scheme that is open to all staff with three months or more service. Under new pension legislation, all eligible staff are auto-enrolled in the stakeholder pension scheme after three months service. Contributions are paid to approved funds and are charged as expenditure in the year in which they accrue.

2. Key areas of judgement and estimation uncertainty

The preparation of financial statements requires management to make judgements, assumptions and estimates that affect the application of accounting policies and amounts reported in the statement of financial activities and balance sheet. Such decisions are made at the time the financial statements are prepared and adopted based on the best information available at the time. Actual outcomes may be different from initial estimates and are reflected in the financial statements as soon as they become apparent.

The key areas of judgements in the audited accounts are regarding property valuations, total return, accounting for grant income, and provisions for debtors.

Investment and non-investment properties are subject to an external professional valuation every 5 years. Between the external valuations Chapter assess whether there have been any material changes to the valuation. Desktop property valuations were carried out at 31[st] March 2019, 2020 and 2021 by Savills (UK) Limited. At 31[st] March 2025 approximately one third of the properties managed on behalf of the Cathedral by Savills (UK) Limited were valued at fair value, ignoring any hope value and not accruing any value for potential change of use unless planning permission had been obtained. It is likely that the value of the properties would be higher if marketed.

On passing the resolution to adopt a total return policy in 2020, Chapter identified the relevant funds and apportioned them into the value of the original endowment (which forms the Investment Fund) and the unapplied investment return (which forms the unapplied total return). Chapter used their best endeavor to arrive at the value of the original endowment but acknowledge the inherent uncertainty caused by lack of records documenting ancient endowments.

Project specific grant income is accounted for on receipt of the grant, with the grant conditions having been fulfilled in advance.

27

Durham Cathedral Accounts for the year ended 31 March 2025

3. Employees

The average number of employees (both by full time equivalent and headcount) during the year was as follows:

Full time equivalent 2025 2024
Number Number
Dean and Chapter 77 80
Durham Cathedral Trading Limited - -
Durham Cathedral Open Treasure Limited - -
Total 77 80
Headcount 2025 2024
Number Number
Dean and Chapter 118 119
Durham Cathedral Trading Limited - -
Durham Cathedral Open Treasure Limited - -
Total 118 119
The total cost of all paid staff of the Cathedral was:
2025 2024
£'000 £'000
Salaries and stipends 2,723 2,537
Employer's National Insurance costs 245 197
Employer's pension costs - stakeholder pensions 128 92
Total 3,096 2,826

There was one employee who received remuneration between £60,000 and £70,000 in FY25 (FY24: 0), and one employee who received remuneration between £70,000 and £80,000 in FY25 (FY24: 0).

Members of Chapter received the following remuneration for the year ended 31 March 2025:

Salary or
 Employer's NIC Pension Total
stipend contributions contributions
£'000 £'000 £'000 £'000
The Very Revd Dr Philip Plyming 42 3 8 53
The Revd Canon Charlotte Allen 34 3 7 44
The Revd Canon Michael Hampel 34 3 7 44
The Revd Canon Michael Everitt 41 5 8 54
The Revd Canon Prof Simon Oliver 8 1 - 9
Total 159 15 30 204

28

Durham Cathedral Accounts for the year ended 31 March 2025

Comparative figures for the year ended 31 March 2024 are as follows:

The Very Revd Dr. Philip Plyming
The Revd Canon Charlotte Allen
The Revd Canon Michael Hampel
The Revd Canon Michael Everitt
Total		 Salary or
stipend
£'000
12
32
40
28
112		 Employer's
NIC
contributions
£'000
1
3
4
1
9		 Pension
contributions
£'000
3
7
7
9
26		 Total
£'000
16
42
51
38
147

The Dean and the two Residentiary Canons received stipends in accordance with the scales laid down by the Church Commissioners, the Archbishops’ Council and the Church of England Pensions Board.

None of the lay members of Chapter received remuneration in either year, other than reimbursement of travel and subsistence costs, as disclosed below.

Four members (FY24: five) of the Chapter were reimbursed a total of £3,343 (FY24: £5,339) in respect of expenses whilst carrying out the business of the Chapter.

29

Durham Cathedral Accounts for the year ended 31 March 2025

4. Income
Donations and legacies
Congregational collections and
giving
Donations
Income from appeals and
fundraising
Tax recoverable under gift aid on
voluntary donations
Income from Friends and local trusts
Income from Benefact Trust
Legacies
Grants in support of mission
Church Commissioners
Cultural Recovery Fund
Other revenue grants
Charges and fees in the course of
mission
Facility and other fees
Income of the Chorister School
Trading and chargeable events
Charges to visitors
Income from shop, restaurant and
other trading activities
Investments
Investment property
Investments
Interest receivable on short term
deposits
Other sundry income
Total income		 Unrestricted
funds
£'000
76
752
-
162
25
-
35
1,050
160
-
408
568
70
-
70
170
1,253
1,423
-
-
128
128
12
3,251		 Restricted
funds
£'000
-
92
329
-
73
-
-
494
-
-
111
111
-
-
-
-
-
-
-
18
6
24
-
629		 Endowment
funds
£'000
-
1
-
-
-
-
-
1
-
-
130
130
-
-
-
-
-
-
1,196
662
-
1,858
-
1,989		 Total
2025
£'000
76
845
329
162
98
-
35
1,545
160
-
649
809
70
-
70
170
1,253
1,423
1,196
680
134
2,010
12
5,869		 Total
2024
£'000
77
967
-
46
39
22
216
1,367
137
-
661
798
346
-
346
254
840
1,094
1,290
606
118
2,014
138
5,757

Please refer to Note 18 for the FY23 SOFA analysed by fund type.

30

Durham Cathedral Accounts for the year ended 31 March 2025

5. Expenditure
Raising funds
Shop, restaurant and other trading
costs
Marketing and development
Investment property
Allocated support costs
Ministry
Clergy stipends and working expenses
Clergy housing costs
Services, music and congregational
costs
Allocated support costs
Education and outreach
Chorister School costs
Educational activities
Archives and library
Charitable and other giving
Allocated support costs
Cathedral and precincts upkeep
Major repairs and restoration
Maintenance and interior upkeep
Utilities
Cathedral insurance
Precincts, security and gardens
upkeep
Allocated support costs
Total expenditure		 Unrestricted
funds
£'000
1,223
282
-
227
1,732
204
19
1,057
260
1,540
-
93
176
-
114
383
1,149
937
215
224
82
519
3,126
6,781		 Restricted
funds
£'000
97
5
-
146
248
-
-
16
-
16
-
60
3
12
-
75
-
29
-
-
6
-
35
374		 Endowment
funds
£'000
-
-
402
-
402
-
-
-
-
-
-
-
-
-
-
-
-
260
-
-
-
-
260
662		 Total
2025
£'000
1,320
287
402
373
2,382
204
19
1,073
260
1,556
-
153
179
12
114
458
1,149
1,226
215
224
88
519
3,421
7,817		 Total
2024
£'000
1,226
434
1,288
218
3,166
174
17
875
250
1,316
-
81
167
1
109
358
-
879
518
219
311
587
2,514
7,354

Please refer to Note 18 for the FY23 SOFA analysed by fund type.

31

Durham Cathedral Accounts for the year ended 31 March 2025

6. Investment assets

Consolidated and Charity

6a. Investment property at valuation
At 1 April
Additions
Disposals
Transfers
Net increase on revaluations
At 31 March		 Unrestricted
funds
£'000
-
-
-
-
-		 Restricted
funds
£'000
2,518
-
-
200
2,718		 Endowment
funds
£'000
26,235
3
-
(470)
541
26,309		 Total
2025
£'000
28,753
3
-
(470)
741
29,027		 Total
2024
£'000
28,883
-
(1,535)
-
1,405
28,753

Basis of property valuation

All investment properties are freehold. The Regulations recommend that an independent formal professional valuation is carried out at least every five years with material movements between valuations being included in the accounts.

The majority of properties were valued at 31[st] March 2019 by Savills (UK) Limited. The remaining properties were valued at 31[st] March 2020, by undertaking desktop valuations. The Chorister School was valued at 31[st] March 2021. Approximately one third of the properties managed on behalf of the Cathedral by Savills (UK) Limited were valued at 31[st] March 2025. Valuations reflect the opinion of fair value in FRS 102: The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants.

6b. Listed Investments

Consolidated and Charity
Investments at market value 1
April
Additions
Disposals
Transfers
Net increase/(decrease) on
revaluation
Investments at market value 31
March
Analysed as follows:
UK equities
Overseas equities
UK fixed interest
Overseas fixed interest
Other investments
Total investments		 Unrestricted
funds
£'000
-
-
-
-
-
-		 Restricted
funds
£'000
1,683
-
26
1,709		 Endowment funds
£'000
21,205
15,848
(16,158)
640
355
21,890		 Total 2025
£'000
22,888
15,848
(16,158)
640
371
23,599
£'000
749
16,130
1,003
1,029
4,688
23,599		 Total
2024
£'000
21,028
4,785
(4,650)
1,725
22,888
£'000
5,086
12,479
2,560
186
2,577
22,888

32

Durham Cathedral Accounts for the year ended 31 March 2025

6c. Subsidiary Undertakings

The subsidiary undertakings of the Cathedral comprise:

Entity Company Percentage Net Profit/(Loss)
registered shareholding assets/(liabilities) for year
number as at 31 March ended 31
2025 March 2025
£'000 £'000
Durham Cathedral Trading Limited 06366806 100 521 280
Durham Cathedral Open Treasure
Limited 08009824 100 (4) (162)

33

Durham Cathedral Accounts for the year ended 31 March 2025

7a. Non-investment property

Consolidated
At cost/valuation 1 April 2024
Transfers
Net increase on revaluations
At cost/valuation 31 March 2025
Depreciation
At 1 April 2024 and 31 March 2025
Net Book Value
At 31 March 2025
At 31 March 2024
Charity
At cost/valuation 1 April 2024
Transfers
Net increase on revaluations
At cost/valuation 31 March 2025
Depreciation
At 1 April 2024 and 31 March 2025
Net Book Value
At 31 March 2025
At 31 March 2024
The Endowment properties are occupied as
Clergy and staff housing
Cathedral activities
Total		 Unrestricted
funds
£'000
-
-
-
-
-
Unrestricted
funds
£’000
-
-
-
-
-
follows:		 Restricted
funds
Endowment
funds
Total
£'000
£'000
£'000
8,945
6,165
15,110
-
470
470
-
5
5
8,945
6,640
15,585
8,945
-
8,945
-
6,640
6,640
-
6,165
6,165
Restricted
funds
Endowment
funds
Total
£’000
£’000
£’000
1,493
6,165
7,658
-
470
470
-
5
5
1,493
6,640
8,133
1,493
-
1,493
-
6,640
6,640
-
6,165
6,165
2025
2024
£'000
£'000
5,070
5,070
1,570
1,095
6,640
6,165		 Restricted
funds
Endowment
funds
Total
£'000
£'000
£'000
8,945
6,165
15,110
-
470
470
-
5
5
8,945
6,640
15,585
8,945
-
8,945
-
6,640
6,640
-
6,165
6,165
Restricted
funds
Endowment
funds
Total
£’000
£’000
£’000
1,493
6,165
7,658
-
470
470
-
5
5
1,493
6,640
8,133
1,493
-
1,493
-
6,640
6,640
-
6,165
6,165
2025
2024
£'000
£'000
5,070
5,070
1,570
1,095
6,640
6,165
6,165

All non-investment properties are freehold and most relate to Endowment funds. All of the properties were valued at fair value as defined in FRS 102 as at 31 March 2020 by Savills (UK) Limited. Approximately one third of the properties managed on behalf of the Cathedral by Savills (UK) Limited were valued at 31[st] March 2025, and all properties are expected to be valued every 3 years.

34

Durham Cathedral Accounts for the year ended 31 March 2025

7b. Inventory
Unrestricted
funds
Restricted
funds
£'000
£'000
Consolidated and Charity
Net book value at 1 April 2024 and 31stMarch 2025
116
600
Inventory assets relate to works of art and heritage assets, at purchase cost.
7c. Intangible fixed assets
Consolidated
Software
£’000
Cost or valuation
At 1 April 2024
10
Additions
-
__
At 31 March 2025
10
Amortisation
At 1 April 2024
5
Charge for year
2
____
At 31 March 2025
7
Net book value
At 31 March 2025
3
At 31 March 2024
5
Charity
Cost or valuation
At 1 April 2024
Additions
At 31 March 2025
Amortisation
At 1 April 2024
Charge for year
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Endowment
funds
£'000
-
Website
£’000
24
-
__

24

7
5
_____
12
12
17


 __
 Total
funds
£'000
716
Total
£’000
34
-
_____
34
_
 12
7
_____
19

15
22
Website
£’000
24
-
_
24
7
5
______
12
12
17

35

Durham Cathedral Accounts for the year ended 31 March 2025

7d. Tangible fixed
assets
Consolidated Land & Plant & Fixtures, fittings & IT Motor Total
buildings Equipment Equipment vehicles
£'000 £'000 £'000 £'000 £'000
Cost
At 1 April 2024 1,021 316 1,598 30 2,965
Category transfer re
opening figures - 19 (19) (-)
Additions - 17 - 17
Disposals (131) (182) (1,282) (9) (1,604)
At 31 March 2025 890 153 314 21 1,378
Depreciation
At 1 April 2024 252 290 989 15 1,546
Category transfer re
opening figures - (92) 92 - -
Charge for the year 29 33 113 5 181
Disposals (52) (128) (1,089) (9) (1,278)
At 31 March 2025 229 103 105 11 448
Net book value
At 31 March 2025 661 50 209 10 930
At 31 March 2024 769 26 609 15 1,419
Charity
Cost
At 1 April 2024 131 212 148 30 521
Category transfer re
opening figures - 11 (13) - (2)
Additions - - 1 - 1
Disposals (131) (172) (100) (9) (412)
At 31 March 2025 - 51 36 21 108
Depreciation
At 1 April 2024 51 126 108 15 300
Category transfer re
opening figures (1) 3 (4) - (2)
Charge for the year 2 17 13 5 37
Disposals (52) (118) (87) (9) (266)
At 31 March 2025 - 28 30 11 69
Net book value
At 31 March 2025 - 13 6 10 29
At 31 March 2024 80 86 40 15 221

36

Durham Cathedral Accounts for the year ended 31 March 2025

8. Heritage assets not recognised in the balance sheet

Cathedral, Ancillary Buildings and Inventory

The construction of Durham Cathedral commenced in 1093 and was completed by about 1133. It is regarded as one of the finest examples of Norman architecture in the world and is situated within the Durham UNESCO World Heritage Site. The Cathedral replaced the 10[th] Century “White Church” built as part of a monastic foundation to house the shrine of St Cuthbert of Lindisfarne.

Objects considered to be of architectural, archaeological, artistic or historic interest are recorded in an Inventory in accordance with S24 of the Care of Cathedrals Measure 2011. These objects are held primarily for use by the Cathedral in its mission or have been vested in Chapter over time and are held as part of the historical record of the Cathedral. Items disclosed in Note 7b Inventory, are separate from those held in the S24 Inventory. No value is attributed on the balance sheet to the Cathedral, ancillary buildings or items recorded in the Inventory as explained in the accounting policy note.

By virtue of its extensive history Durham Cathedral owns many valuable heritage assets with historic and educational value. The nature and scale of the collection belonging to the Chapter of Durham Cathedral include:

The Chapter considers that the Cathedral’s heritage assets are practically very difficult and prohibitively expensive to value, as a result of the unique nature of many of the items. None of the aforementioned heritage assets are therefore included on the Cathedral’s balance sheet. Despite the difficulties in valuation, the Chapter believes that there is significant value in the heritage assets relative to the Cathedral’s net asset value at the financial year end.

The Chapter has a statutory duty under S24 (1) (a) of the Care of Cathedrals Measure 2011 to manage and maintain the Cathedral, its contents and other buildings and monuments. The Chapter has a planned programme of major restoration works to the Cathedral and other buildings which is informed by a full quinquennial review by the Cathedral Architect. Works are overseen by the Property team and the Cathedral Architect. The majority of the conservation and repair is carried out by highly skilled craftsmen employed by the Cathedral.

The collections in the Library are managed by a Head of Collections and library team. Necessary conservation works are carried out by accredited conservators. The Library welcomes researchers with interests in the collections. Access to the Library's collections is freely available to members of the public.

9. Stocks
Consolidated Charity Consolidated Charity
2025 2025 2024 2024
£'000 £'000 £'000 £'000
Goods for resale 120 4 106 15

37

Durham Cathedral Accounts for the year ended 31 March 2025

10. Debtors

Debtors-amounts due within one year
Consolidated
2025
£'000
Trade debtors
189
Amounts owed by group companies
-
Other debtors
159
Prepayments and accrued income
398
746
11. Creditors - amounts falling due within one year
Consolidated
2025
£'000
Trade creditors
569
Amounts owed to group companies
Taxes and social security
85
Other creditors
100
Accruals and deferred income
420
1,174
12. Creditors - amounts falling due after more than one year
Consolidated
2025
£'000
Other creditors
130		 Charity
2025
£'000
127
576
151
377
1,231
Charity
2025
£'000
534
10
53
28
357
982
Charity
2025
£'000
130		 Consolidated
2024
£'000
375
-
2,313
285
2,973
Consolidated
2024
£'000
477
67
522
418
1,484
Consolidated
2024
£'000
140		 Charity
2024
£'000
367
745
2,308
275
3,695
Charity
2024
£'000
444
50
469
461
1,424
Charity
2024
£'000
140

13. Future commitments and contingent liabilities

There are no uninsured legal claims against the Chapter outstanding at the date of signing the annual accounts. No existing claims are expected to result in significant cost to the Cathedral.

Capital commitments

There were no capital commitments as at 31[st] March 2025.

Other commitments

The Cathedral entered into a merger agreement of the Cathedral Chorister School with Durham School on 23 November 2020. As part of the terms of the merger, the Cathedral agreed to invest up to £4.7m in the fabric of the existing buildings of the Chorister School over a period of time. Since the merger the Cathedral has funded agreed works of £0.8m up to 31 March 2024, and an additional £0.7m up to 31 March 2025. A further £0.8m has been budgeted for the 2025/6 financial year. The Cathedral is expecting the balance of the agreed contributions to be paid in future financial periods.

38

Durham Cathedral Accounts for the year ended 31 March 2025

Commitments under operating leases

The Cathedral’s commitments under operating leases is as follows:

Computer & other 2025 total 2024 total
IT Equipment
£'000 £'000 £'000
Total payable within one year 0 0 3
Total payable during years 2 to 4 - - -
_ _ _
0 0 3

14. Pensions

Stakeholder scheme

The Chapter introduced a new individual stakeholder pension scheme in April 2002. This is for all staff employed by the Chapter, and/or the trading subsidiaries. Employer payments under the stakeholder pension scheme in FY25 totaled £106k (FY24: £92k).

15. Associated entities and related parties

Controlled by the Chapter

Durham Cathedral Trading Limited, a wholly owned subsidiary, undertakes trading activities on behalf of the Chapter and transfers profits back to the Chapter through Gift Aid or cash/profit transfers. Durham Cathedral Open Treasure Limited is also a wholly owned subsidiary which became operational in July 2016. Profits will also be transferred back to the Chapter through Gift Aid. Transactions undertaken by both wholly owned subsidiaries are included in the Cathedral’s consolidated financial statements.

Not controlled by the Chapter

The Friends of Durham Cathedral, Durham Cathedral Choir Association, Durham Cathedral Academic Charity.

Whilst both The Friends of Durham Cathedral and Durham Cathedral Choir Association give support to Durham Cathedral, the powers of both charities regarding distribution of income are discretionary.

The following parties have been identified as being related parties, through the involvement of Member(s) of Chapter in their management. Values of transactions between Durham Cathedral and each related party for the year ended 31 March 2025 are disclosed below.

Related party
1.Durham University
2.St Chad's College
3.Lord Crewe's Charity
4.Durham Diocese
5.Friends of Durham Cathedral
7.Visit County Durham
8.Durham Cathedral Choir Association
9.Durham Cathedral Schools
Foundation1
Total		 Sales to

£'000

200

-

-

6

142

12

10

8

378
 Purchases
from

£'000

161

1

-

-

1

3

-

493

659
 Year-end
debtor or
(creditor)

£'000

(3)

1

-

-

10

-

-

(136)

(128)
 Rent
charged

£'000

34

-

-

-

-

-

-

324

358
 Year-end rent
owed or
(prepaid)
£'000
-
-
-
-
-
-
-
(12)
(12)

1 Durham School figures included with Durham Cathedral Schools Foundation (DCSF)

39

Durham Cathedral Accounts for the year ended 31 March 2025

Comparative figures for the year ended 31 March 2024 are as follows:

Related party
1. Durham University
2. St Chad's College
3. Lord Crewe's Charity
4. Durham Diocese Board of Finance
5. Friends of Durham Cathedral
6. Durham School
7. Visit County Durham
8. Durham Cathedral Choir
Association
9.Durham Cathedral Schools
Foundation
Total		 Sales to
£'000
148
-
-
-
27
-
-
5
27
207		 Purchases
from
£'000
67
1
1
-
1
-
5
-
-
75		 Year-end
debtor or
(creditor)
£'000
24
1
-
-
-
58
-
-
56
139		 Rent
charged
£'000
34
60
-
-
-
151
-
157
402		 Year-end
rent owed
or (prepaid)
£'000
-
-
-
-
-
(12)
-
-
52
40

40

Durham Cathedral Accounts for the year ended 31 March 2025

16. Statement of Funds

16. Statement of Funds
16.1 Consolidated
Endowment funds
Endowment funds
Restricted funds
1. Open Treasure restricted fund
2. Friends
3. Durham Cathedral Institute
4. Inventory funds
5. Library department fund
6. Cathedral fabric fund
7. Music
8. Provision of Cathedral Music fund
9. School outreach fund
10. Raise A Voice
11. Cloister Roof
12. Surtees legacy fund
13. Woodlands fund
14. Other restricted funds (< £50k)
15. Special trust funds
Total Restricted funds
Unrestricted funds
General fund
Designated funds
Total consolidated funds		 Brought
forward
£'000
63,103
63,103
243
65
123
106
311
740
94
104
61
469
34
4,189
234
182
230
7,185
1,518
315
1,833
72,122		 Incoming
resources
£'000
1,989
1,989
-
73
10
-
-
-
-
-
404
19
-
-
102
21
629
3,251
-
3,251
5,869		 (Outgoing)
resources
£'000
(662)
(662)
(87)
(124)
(1)
-
-
(11)
-
(1)
-
(45)
-
(6)
(17)
(68)
(13)
(373)
(6,702)
(78)
(6,780)
(7,815)		 Gains,
(losses) &
transfers
£'000
(3,731)
(3,731)
(156)
-
-
-
-
-
-
-
984
-
828
4,166
(141)
4,025
1,122		 Balance
carried
forward
£'000
60,699
60,699
-
14
132
106
311
729
94
103
60
828
53
5,167
217
216
238
8,269
2,232
96
2,328
71,296

41

Durham Cathedral Accounts for the year ended 31 March 2025

16. Statement of Funds - continued

16. Statement of Funds - continued
16.2 Entity
Endowment funds
Endowment funds
Restricted funds - as analysed above
Deduct DCOT element of OT Restricted
fund
Total Restricted funds
Unrestricted funds
General fund
Designated funds
Total entity funds		 Brought
forward
£'000
63,103
63,103
7,185
(242)
6,943
1,164
315
1,480
71,526		 Incoming
resources
£'000
1,989
1,989
629
-
629
2,124
-
2,124
4,742		 (Outgoing)
resources
£'000
(662)
(662)
(373)
87
(287)
(5,581)
(78)
(5,661)
(6,610)		 Gains,
(losses)
&
transfers
£'000
(3,731)
(3,731)
828
155
984
4,009
(141)
3,868
1,121		 Balance
carried
forward
£'000
60,699
60,699
8,269
(-)
8,269
1,715
96
1,811
70,779

Endowment funds

Endowment funds are funds which are held for the permanent benefit of the Cathedral.

42

Durham Cathedral Accounts for the year ended 31 March 2025

Trust for Unapplied Total Total
Investment return Endowment
£’000 £’000 £’000
At the beginning of the reporting period:
Unapplied total return 25,535 37,568 63,103
Movements during the reporting period:
New capital added 131 - 131
Allocation to capital 664 (664) -
Investment property rent - 1,196 1,196
Less: Investment property manager costs - (116) (116)
Less: Investment property costs - (468) (468)
Investment return: dividends and interest - 662 662
Investment return: realised and unrealised
gains and losses - 897 897
Less: Investment Manager costs - (78) (78)
Total 795 1,429 2,224
Unapplied total return allocated to income in
the reporting period - (4,628) (4,628)
Net movements in reporting period 795 (3,199) (2,404)
At the end of the reporting period:
Gift component of the permanent
endowment 26,330 - 26,330
Unapplied total return - 34,369 34,369
__ __ __
Total 26,330 34,369 60,699

Restricted funds

1. Open Treasure Restricted fund

This was created to ensure that funds (donations and grants) given specifically for this project were ring-fenced. The fund was fully written down following a review of the company’s ongoing trading performance.

2. Friends

The Friends of Durham Cathedral generously donate funds each year for specific projects

3. Durham Cathedral Institute

This Fund was created to support the work of the Durham Cathedral Institute. It is funded from donations received and income from the Academic Trust and is used to support the work of and events hosted by, the Institute.

4. Inventory funds

These were originally created by grants and relate to the acquisition of items added to the Cathedral’s inventory.

5. Library department fund

Generous donations were received during the year ended 31 March 2012 to enable the Library to buy back books and manuscripts that were owned by Durham Cathedral (Durham Priory) before the dissolution of the monasteries in 1540.

6. Cathedral Fabric fund

Income comprises donations towards the cost of Cathedral repairs. Expenditure represents repairs and maintenance of the Cathedral fabric.

7. Music fund

The Music fund is used to facilitate special musical enhancements of the Cathedral’s worship.

43

Durham Cathedral Accounts for the year ended 31 March 2025

8. Provision of Cathedral Music fund

The Provision of Cathedral Music fund was used to facilitate special musical enhancements of the Cathedral’s worship but is in the process of being re-named the Organ Appeal Fund due to it being set aside for that purpose on the basis of a specific legacy gift.

9. School outreach fund

This fund is for Choral outreach: to inspire as many children as possible in the joy of singing, supported by both Choristers and the Cathedral.

10. Raising A Voice

This fund exists to receive grants and donations for the purposes of improving the financial sustainability of the Cathedral’s choral foundation, providing means tested bursaries to eligible chorister, and supporting music outreach activity.

11. Cloister Roof

This fund has been created for grants and donations in support of a planned project to repair the cloister roof. The repairs were first identified in the 2013 Quinquennial Report (QIR) and have subsequently become “high priority” status due to further deterioration of the roof beams.

12. Surtees legacy fund

This fund was created in 2019 when a large legacy, which is for the maintenance of the fabric of the Cathedraland library.

13. Woodlands Fund

This fund, established upon receipt of a legacy in 2022, exists to receive grants and donations for the purpose of caring for and conserving the Cathedral’s riverbanks and woodlands.

14. Other Restricted funds

This comprises sundry funds ranging from £1,000 to £50,000 that have been created by donations for specific purposes.

15. Special Trust funds

These funds have subsequently been consolidated into two new Charitable Trusts – the Durham Cathedral Educational Trust and the Durham Cathedral Trust for the Relief of Poverty.

Unrestricted funds

Designated Funds are set aside by the Chapter out of the unrestricted general fund for specific purposes or projects. Movements for the year ended 31 March 2025 are as follows:

Consolidated and Charity
Property designated fund
Altar frontals
Riverbanks project
School premises fund
Cultural recovery fund
Total		 Balance
brought
forward
£'000
99
13
8
5
190
315		 Incoming
resources
£'000
-
-
-
-
-
-		 Outgoing
resources
£'000
-
-
-
-
(79)
(79)		 Fund
transfers
£'000
(99)
(13)
(8)
(5)
(16)
(140)		 Balance
carried
forward
£'000
-
-
-
-
96
96

44

Durham Cathedral Accounts for the year ended 31 March 2025

Transfers

Transfers from restricted to unrestricted funds represent the transfer of under and overspends on projects which have been completed and all restrictions have been met.

Transfers from Endowment to unrestricted funds represent the application of total returns allocated during the year.

Comparative fund notes are shown in Note 19.

17. Cashflow notes

17.1 Reconciliation of net incoming resources before recognised gains to net cash inflow/(outflow) from operating activities

Net incoming/(outgoing) resources
Less: income from property - net of costs
Less: investment income - net of costs
(Gain)/loss on investments
(Gain) on property revaluation
Add: depreciation and amortisation
Loss on disposal of tangible fixed assets
(Gain)/Loss on disposal of investment property
(Increase) in stocks
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
Net cash outflow from operating activities
17.2 Reconciliation of cash and cash equivalents
Cash at bank and in hand
Short term deposits
Loans
Cash and cash equivalents
17.3 Analysis of changes in net funds/(debt)
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Short term deposits held as current assets
Net funds		 1 April
2024
£'000
10,189
-
-
515
10,704		 2025
£'000
(826)
(896)
(711)
(198)
(746)
187
325
-
(13)
2,227
(320)
(971)
2025
£'000
1,655
9,151
10,806
-
10,806
Cashflow
£'000
(8,533)
8,636
103		 2024
£'000
8,880
(696)
(460)
(1,725)
(1,405)
174
-
(7,347)
(4)
(2,139)
367
(4,355)
2024
£'000
10,189
515
10,704
-
10,704
31 March
2025
£'000
1,655
-
-
9,151
10,806

45

Durham Cathedral Accounts for the year ended 31 March 2025

18. Prior year SOFA analysed by fund type

Income and endowments from:
Donations and legacies
Grants in support of mission
Charges and fees in the course of mission
Trading and chargeable events
Investments
Other income
Total income
Expenditure on:
Raising funds
Ministry
Education and outreach
Cathedral and precincts upkeep
Total expenditure
Net (outgoing)/incoming resources before
investment gains/(losses)
Net gains on investments
Net (expenditure)/income
Transfer between funds
Net movement in funds
Funds brought forward
Funds carried forward		 Unrestricted
funds
£'000
1,075
598
346
1,094
123
138
3,374
(1,737)
(1,304)
(341)
(2,273)
(5,655)
(2,281)
-
(2,281)
2,001
(280)
2,113
1,833		 Restricted
funds
£'000
188
200
-
-
65
-
453
(176)
(12)
(17)
(107)
(312)
141
-
140
(1)
140
7,046
7,186		 Endowment
funds
£'000
104
-
-
-
1,826
-
1,930
(1,253)
-
-
(134)
(1,387)
543
10,477
11,020
(2,000)
9,020
54,083
63,103		 Total
2024
£'000
1,367
798
346
1,094
2,014
138
5,757
(3,166)
(1,316)
(358)
(2,514)
(7,354)
(1,597)
10,477
8,880
-
8,880
63,242
72,122

46

Durham Cathedral Accounts for the year ended 31 March 2025

19. Prior Year Statement of funds

9. Prior Year Statement of funds
Consolidated
Endowment funds
Endowment funds
Restricted funds
1.Open Treasure restricted fund
2.Academic fund
3.Chapter copes fund
4.Inventory funds
5.Library department fund
6.Cathedral fabric fund
7.Liturgical and Worship fund
8.Music fund
9.Cathedral charitable fund
10.Other restricted funds
11. Education funds
12. School outreach fund
13. Special trust funds
14. Raise A Voice
15. Cloister Roof
16. Surtees legacy fund
17. Cathedral Sustainability fund
18. Woodlands Fund
19. HEF change programme fund
20. Cultural Recovery Fund
Total Restricted funds
Unrestricted funds
General fund
Designated funds
Total consolidated funds		 Brought
forward
£'000
54,083
54,083
344
13
25
106
312
739
5
90
10
256
21
60
202
412
35
4,162
2
234
1
17
7,046
1,690
423
2,113
63,242		 Incoming
resources
£'000
1,930
1,930
-
-
-
-
-
-
-
4
3
189
-
-
29
57
-
33
138
-
-
-
453
3,374
-
3,374
5,757		 (Outgoing)
resources
£'000
(1,387)
(1,387)
(97)
-
-
-
-
-
-
(1)
-
(63)
-
-
(1)
-
-
(7)
(139)
-
-
(4)
(312)
(5,609)
(46)
(5,655)
(7,354)		 Gains,
(losses) &
transfers
£'000
8,477
8,477
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
-
-
-
(1)
2,063
(62)
2,001
10,477		 Balance
carried
forward
£'000
63,103
63,103
247
13
25
106
312
739
5
93
13
382
21
60
230
469
35
4,188
-
234
1
13
7,186
1,518
315
1,833
72,122

47

Durham Cathedral Accounts for the year ended 31 March 2025

19. Prior year Statement of Funds - continued

Brought
forward
£'000
Entity
Endowment funds
Endowment funds
54,083

54,083
Restricted funds - as analysed above
7,046
Deduct DCOT element of OT Restricted
fund
(340)

Total Restricted funds
6,706
Unrestricted funds
General fund
1,443
Designated funds
424

1,867
Total entity funds
62,656
Total returns movement – prior year
At the beginning of the reporting period:
Unapplied total return
Movements during the reporting period:
New capital added
Allocation to capital
Investment property rent
Less: Investment property Manager costs
Less: Investment property costs
Investment return: dividends and interest
Investment return: realised and unrealised
gains and losses
Less: Investment Manager costs
Total
Unapplied total return allocated to income in
the reporting period
Net movements in reporting period
At the end of the reporting period:
Gift component of the permanent
endowment
Unapplied total return
Total		 Incoming
resources
(Outgoing)
resources
Gains,
(losses)
&
transfers
£'000
£'000
£'000
1,930
(1,387)
8,477
1,930
(1,387)
8,477
453
(312)
(1)
-
97
-
453
(215)
(1)
2,573
(4,915)
2,063
-
(46)
(62)
2,573
(4,961)
2,001
4,956
(6,563)
10,477
Trust for
Investment
Unapplied Total
return
£’000
£’000
24,468
29,435
104
-
783
(783)
-
1,280
-
(86)
-
(1,215)
-
546
-
10,477
-
(86)
887
10,133
-
(2,000)
887
8,133
25,535
-
-
37,568
_
_
25,535
37,568		 Balance
carried
forward
£'000
63,103
63,103
7,186
(243)
6,943
1,164
316
1,480
71,526
Total
Endowment
£’000
54,083
104
-
1,280
(86)
(1,215)
546
10,477
(86)
11,020
(2,000)
9,020
25,535
37,568
__
63,103

48

Durham Cathedral Accounts for the year ended 31 March 2025

20. Auditor’s Remuneration
20. Auditor’s Remuneration
For audit services
For other services		 2025
£'000
25
2		 2024
£'000
25
2

21. Custodian Funds

The Chapter act as custodian trustee responsible for trust funds held on behalf of others. The movement on these funds during the year is set out below:

on these funds during the year is set out below:
Balance at 1stApril
Disposals
Additions
Revaluation of investments held		 2025
£’000
4,441
(114)
-
216
4,543		 2024
£’000
4,160
(506)
603
184
4,441

The funds held by Durham Cathedral as custodian trustee are investments managed by Sarasin Partners LLP. The funds are held on behalf of Durham Cathedral Academic Trust within a separate investment fund.

49