## **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|
1
**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.
2
**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.
3
**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
4
## **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
5
**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.
6
## **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
7
**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.
8
**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.
9
**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|
|---|---|
10