2021-12-31-accounts - The Association Of The Friends Of Rochester Cathedral

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REGISTERED CHARITY NO: 273973

THE ASSOCIATION OF

THE FRIENDS OF ROCHESTER CATHEDRAL

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS	PAGE
Annual Report of The Council	1 - 4
Independent Examiners' Report	5
Statement of Financial Activities	6
Balance Sheet	7
Notes to the Financial Statements	8 - 10

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL ANNUAL REPORT OF THE COUNCIL

The Council are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2021.

ADMINISTRATIVE DETAILS

Charity registration number

273973

Principal office Garth House The Precinct Rochester Kent, ME1 1SX Members of the Council President - The Dean of Rochester - The Very Revd. Dr P J Hesketh, DL Vice-President The Revd. Canon G Giles Chairman M Bailey Vice-Chairman N Allan Treasurer P Smith Administrator Mrs T Cliffe Chapter Clerk Representative S Lace Archdeaconry Representative M Chesterfield Archdeaconry Representative Mrs A Evans Archdeaconry Representative Canon A Vousden D Carder C Donaldson Mrs M Holtby B Jacobs M Jennings Mrs J Partington A Ratcliffe Mrs M Ratcliffe - died Mrs P Sait - resigned Mrs H Sinclair Mrs J Wallace Mrs A White

In addition the charity has the following posts:
Patron	HRH The Duchess of Kent, GCVO
Visitor	The Lord Bishop of Rochester
Independent Examiner	R C AbelFCA CTA
	Aggarwal & Co Ltd
	5 London Road, Rainham
	Gillingham
	Kent, ME8 7RG
Bankers	Lloyds Bank plc
	142/146 High Street
	Chatham
	Kent , ME4 4DQ
Investment Advisers	Cazenove Capital Management Ltd
	12 Moorgate
	London, EC2R 6DA

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL ANNUAL REPORT OF THE COUNCIL

GOVERNANCE

Governing Document

The Association of the Friends of Rochester Cathedral is an unincorporated association governed by its constitution adopted 11 June 1977 with four subsequent amendments, the last of which was 17 December 2019.

Recruitment and appointment of trustees

The activities of the charity are vested in a Council. The members of the Council are its trustees for the purposes of charity law and throughout this report are collectively referred to as The Council.

The members of the Council who have served during the year are set out on page 1.

The Council consists of a President, Vice-President, Treasurer, not more than twelve elected members, three nominated Archdeaconry members and a maximum of two co-opted members.

They are elected as follows:

The President is the current Dean of Rochester;
The Vice-President is a Residentiary Canon of Rochester nominated by the Dean and Chapter;
A Chairman is nominated from the elected Council members and ratified annually at the Annual General Meeting;
A Vice-Chairman is elected annually by the Council at the first Council Meeting following the AGM;
The Treasurer is elected annually at the Annual General Meeting;
One third of the elected members are appointed at the AGM; members who have served for two consecutive periods of three years shall not be eligible for further re-election until a period of one year has elapsed.

Organisation and decisions

The Council meets at least four times in each year. It has power to establish committees as necessary but all policy and financial matters shall be decided by the Council.

The Council consults and liaises with the Dean and Chapter as to the requirements of the Cathedral and particularly the condition and needs of its fabric and treasures. The Council makes proposals to the Dean and Chapter as to the manner in which the income and any permitted capital shall be spent to the greatest advantage of the Cathedral.

OBJECTIVES AND ACTIVITIES

Objects of the charity

The objects of the charity are to assist the Dean and Chapter to:

preserve and maintain the fabric, fittings, ornaments, furniture and monuments of Rochester Cathedral and the lands used in connection therewith;
preserve and maintain the worship and services in Rochester Cathedral;
further the religious and charitable works of the Cathedral; and promote public interest in the charitable work and the life of the Cathedral.

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL ANNUAL REPORT OF THE COUNCIL

Aims and activities

To achieve its objects, the charity:
offers membership to all who are interested in the aims of the charity;
consults and liaises with the Dean and Chapter as to the requirements of the Cathedral;
makes grants to the Dean and Chapter of income and permitted capital; and
offer members a number of social events and visits.

The Council has complied with the duty in section 17(5) of the Charities Act 2011 to have regard to guidance published by the Charity Commission on public benefit.

The public and members have continued to benefit from the charity's activities. The charity continues to make grants to the Dean and Chapter for projects to maintain and improve the Cathedral.

Putting on social events is another way in which the members and their guests benefit from the social interaction.

ACHIEVEMENTS AND PERFORMANCE

During the year our investment portfolio increased in value by £ 108,421 an increase of 9.7%. A number of investments were sold and cash of £150,000 was withdrawn shortly before the year end. The monies are to be used to make further grants to the Dean and Chapter.

Income from the investments fell slightly from last year to £29,483 and represents a return of 2.6%. The Council consider our investments to be of a long term nature and in place to generate income.

FINANCIAL REVIEW

Review of the activities

The accounts are for the year ended 31 December 2021. Total income during the period was £150,544, a substantial increase of over last year due to the receipt of two legacies totalling £105,017, an increase in membership subscriptions and the return, post pandmeic, to being able to hold social events.

Expenditure increased from £49,710 to £173,399, due largely to the grants to the Dean and Chapter for the upkeep of the Cathedral.

The grants approved and paid to the Dean and Chapter for the upkeep of Rochester Cathedral during the year were: -

Garth maintenance Catherdal lighting	£ 7,500 138,096 145,596

The result was expenditure exceeded income by £22,855 with an offset of investment gains to increase overall total funds of £1,275,150. Of these funds the unrestricted income funds at 31 December 2021 stood at £215,529.

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL ANNUAL REPORT OF THE COUNCIL

Reserves policy

The Council have examined the level of free reserves (that is those funds not tied up in fixed assets and designated and restricted funds) the charity will require to sustain its operations over a period where income may be curtailed or delayed. The Council consider that the most appropriate level of free reserves at 31 December 2021 should equate to one year's pre-pandemic average charitable expenditure. The Council's best estimate of the amount required is £365,259. The actual free reserves were £200,657.

Investment policy

The Council has considered the most appropriate policy for investing the endowment funds which will be the main source of future income for the charity. They have found that specialised unit trusts designed for the charity sector meet their requirements to generate income and capital growth.

Since 31 December 2021 our investments have moved in line with the stock market. As we consider our investments to be of a long term nature, put in place to generate income, there is no proposal to consider encashment at the present time. However, there is some uncertainty as to the levels of income which may arise in the near future, the implications of which are presently are unquantifiable.

Responsibilities of The Council

The Council are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources for the financial period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Council are responsible for keeping proper accounting records that 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 Reports) Regulations and the provisions of the constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Council on and signed on their behalf

P Smith

Treasurer

INDEPENDENT EXAMINER'S REPORT TO THE COUNCIL OF THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL

I report to the charity trustees ("the Council") on my examination of the accounts of the Association of the Friends of Rochester Cathedral ("the Charity") for the year ended 31 December 2021, which are set out on pages 6 to 10.

Responsibilities and basis of report

As the Council of the Charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act").

I report in respect of my examination of the Council’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commissioner under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

R C Abel FCA CTA Aggarwal & Co Ltd Chartered Accountants

5 London Road Rainham Gillingham Kent, ME8 7RG

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

note
INCOME FROM:
Donations and legacies
Charitable activities
- membership subscriptions
- social events
- book of memory
Investments
Total incoming resources
EXPENDITURE ON:
Charitable activities
- grants to Dean and Chapter for the upkeep
of Rochester Cathedral
- social events
- support costs
3
Other costs
- investment management fees
Total resources expended
NET EXPENDITURE
Gains on revaluation of investments (2020 : losses)
NET MOVEMENT IN FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD

Unrestricted
Total
Total
income
Endowment
Funds
Funds
funds
funds
2021
2020
£
£
£
£
106,872
-
106,872
2,550
10,321
-
10,321
8,463
3,728
-
3,728
214
140
-
140
30
29,483
-
29,483
30,725
150,544
-
150,544
41,982
145,596
-
145,596
29,150
3,455
-
3,455
-
18,809
-
18,809
15,289
167,860
-
167,860
44,439
746
4,793
5,539
5,271
168,606
4,793
173,399
49,710
(18,062)
(4,793)
(22,855)
(7,728)
14,598
93,823
108,421
(55,122)
(3,463)
89,029
85,566
(62,850)
218,992
970,592
1,189,584
1,252,434
215,529
1,059,621
1,275,150
1,189,584

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 8 to 10 form part of these financial statements.

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL BALANCE SHEET AT 31 DECEMBER 2021

note FIXED ASSETS Investments 7 CURRENT ASSETS Stocks Debtors and prepayments Investments Cash at bank and in hand CREDITORS: amounts falling due within one year Other creditors and accruals NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES FUNDS OF THE CHARITY Endowment funds 8 Unrestricted income funds TOTAL CHARITY FUNDS	£ £ 1,074,493 1,419 - 5,388 194,634 201,441 784 200,657 1,275,150 1,059,621 215,529 1,275,150 2021	£ £ 1,121,611 1,419 195 5,388 61,744 68,746 773 67,973 1,189,584 970,592 218,992 1,189,584 2020

The notes on pages 8 to 10 form part of these financial statements.

Approved by the Council on and signed on their behalf

P Smith

Treasurer

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. STATUTORY INFORMATION

The Association of the Friends of Rochester Cathedral is an unincorporated association registered with the Charity Commission for England and Wales. The charity's registered number and principal address can be found on page 1.

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

(a) Accounting basis and standards

The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS 102) "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)", Financial Reporting Standard 102 "The Financial Standard applicable in the UK and Republic of Ireland" and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the inclusion of investments at fair value.

(b) Income

Income is included in the period to which it relates and allocated to specific endowment, restricted or unrestricted funds as appropriate in accordance with any wishes of the donor. Income is not included in the Statement of Financial Activities net of expenditure.

Income received in advance for activities for generating funds, such as social events, is deferred until the completion of the event. Such amounts received are shown on the balance sheet as deferred income. This income is not usually received more than one year in advance of the function.

(c) Volunteers and donated services and facilities

No value is incorporated into these financial statements for the services provided by volunteers or where services are provided to the charity as a donation that would normally be purchased from suppliers.

(d) Expenditure and recognition of liabilities

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category.

(e) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year

(f) Other financial instruments

The charity enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans to and from banks and other third parties. Basic financial instruments are recognised at amortised cost, with changes recognised in the Statement of Financial Activities.

(g) Stocks

Stocks are included at the lower of cost and net realisable value. Stocks consists of publications for resale.

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES ( continued)

(h) Funds structure

The charity has endowment funds which primarily must be held permanently by the charity, principally as investments. Income arising on the endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Part of the endowment funds are expendable where the trustees can exercise the power to convert the property into income.

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects.

3. SUPPORT COSTS

Salaries (of one part time employee) Office rent and expenses Printing postage and stationery Annual Report Independent examiner	2021 £ 10,295 4,405 2,332 1,177 600 18,809	2020 £ 8,471 3,884 989 1,345 600 15,289

4. TRUSTEE REMUNERATION AND EXPENSES

Neither the trustees nor any person connected with them have received any remuneration or reimbursed expenses during the year.

5. RELATED PARTY TRANSACTIONS

There are no related party transactions in the current or preceding year.

6. TAXATION

The charity is a registered charity and no provision is considered necessary for taxation.

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7. INVESTMENT ASSETS

Market value at beginning of year Investments sold and cash withdrawn Investment management fees Net gains on revaluation (2020 : losses) Market value at end of year Investments comprise various managed unit funds: - UK and global equities - Bonds - Multi-asset funds - Property - Cash	2021 £ 1,121,611 (150,000) (5,539) 108,421 1,074,493 732,007 96,917 97,907 111,731 35,931 1,074,493	2020 £ 1,182,004 - (5,271) (55,122) 1,121,611 742,276 138,656 140,640 60,543 39,496 1,121,611

8. ENDOWMENT FUNDS

Balance at 1 January 2021 Expenditure Net gains on revaluation Balance at 31 December 2021	Permanent Expendable Total £ £ £ 691,092 279,500 970,592 (3,413) (1,380) (4,793) 66,805 27,018 93,823 754,484 305,138 1,059,621

9. ANALYSIS OF ASSETS BETWEEN FUNDS

Fixed assets investments Cash at bank and in hand Other net current assets	Unrestricted Endowment Funds Funds Total £ £ £ 14,872 1,059,621 1,074,493 194,634 - 194,634 6,023 - 6,023 215,529 1,059,621 1,275,150