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2022-12-31-accounts

REGISTERED CHARITY NO: 273973

THE ASSOCIATION OF

THE FRIENDS OF ROCHESTER CATHEDRAL

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022.

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 N Allan Treasurer P Smith Administrator Mrs T Cliffe Chapter Clerk Representative S Lace Archdeaconry Representative M Chesterfield Archdeaconry Representative Mrs A Evans - retired Archdeaconry Representative Canon A Vousden A Bawtree - appointed S Berry - appointed D Carder C Donaldson Mrs M Holtby Mrs B Jacobs Mrs J Partington A Ratcliffe J Scott - appointed M Bailey - retired M Jennings - retired Mrs H Sinclair - retired Mrs J Wallace - retired 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:

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:

2

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

Aims and activities

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 we made a substantial contribution of £340,255 to the Cathedral to fulfil our commitment to provide £500,000 in total towards their lighting project. The first payment was made in 2020, continued last year and was completed in May 2022. Full details of what has been achieved can be found on Rochester Cathedral's website at https://www.rochestercathedral.org/articles/2021/10/15/rochester-cathedral-undergoes-work-to-improve-lighting2s7wr-h4879.

Our grant to the Cathedral would not have been possible without realising part of our investment portfolio. The Council decided to use just over one half of its expendable endowment fund to make this bequest. The timing of the realisations was opportune as since March 2022 the remaining investments in equities and bonds has declined in value.

As a result of the large grants from the endowment funds, the income fell but still equated to a return of 2.3% (2021 : 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 2022. Total income during the period was £37,659, a substantial fall from last year of £150,444 as that included donations and legacies of £106,872. Also, investment income has fallen following the sale of some investments for the reasons given in the preceding paragraphs.

Expenditure increased from £173,399 to £366,539. The increase is due to the grants to the Dean and Chapter for the upkeep of the Cathedral, this year amounting to £340,255 exclusively towards the lighting project. Other expenditure on social events and support costs remained unchanged.

With a loss on revaluation of the investments, the net movement in funds was a reduction of £379,604, of which £224,642 is attributable to the endowment funds. At the year-end date the endowment funds stood at £834,979 and unrestricted income funds at £60,567.

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 designated, restricted and endowment 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 2022 should equate to one year's average charitable income, excluding legacies. The Council's best estimate of the amount required is about £42,000. The actual free reserves were £60,567.

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 2022 our investments have moved in line with stock markets. As we consider our investments to be of a long term nature, put in place to generate income, there is no proposal to consider further encashments 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:

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 3 April 2023 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 2022, 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:

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.

Richard Abel

R C Abel FCA CTA Aggarwal & Co Ltd Chartered Accountants 11 April 2023

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 2022

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
- book of memory
- support costs
3
Other costs
- investment management fees
Total resources expended
NET EXPENDITURE
Loss on revaluation of investments (2021 : gains)
NET MOVEMENT IN FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Total
Total
income
Endowment
Funds
Funds
funds
funds
2022
2021
£
£
£
£
2,176
-
2,176
106,872
8,645
-
8,645
10,321
4,309
-
4,309
3,728
60
-
60
140
22,469
-
22,469
29,483
37,659
-
37,659
150,544
170,255
170,000
340,255
145,596
3,090
-
3,090
3,455
80
-
80
-
18,429
-
18,429
18,809
191,854
170,000
361,854
167,860
65
4,620
4,685
5,539
191,919
174,620
366,539
173,399
(154,260)
(174,620)
(328,880)
(22,855)
(702)
(50,022)
(50,724)
108,421
(154,962)
(224,642)
(379,604)
85,566
215,529
1,059,621
1,275,150
1,189,584
60,567
834,979
895,546
1,275,150

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 2022

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		 £
£
849,084
1,364
30
-
48,758
50,152
(3,690)
46,462
895,546
834,979
60,567
895,546
2022		 £
£
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

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

Approved by the Council on 3 April 2023 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 2022

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 2022

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
Insurance
Printing postage and stationery
Annual report
Independent examiner		 2022
£
9,971
4,905
554
1,799
-
1,200
18,429		 2021
£
10,295
3,917
488
2,332
1,177
600
18,809

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 2022

7. INVESTMENT ASSETS

Market value at beginning of year
Investments sold and cash withdrawn
Investment management fees
Net losses on revaluation (2021 : gains)
Market value at end of year
Investments comprise various managed unit funds:
- UK and global equities
- Bonds
- Multi-asset funds
- Property
- Cash		 2022
£
1,074,493
(170,000)
(4,685)
(50,724)
849,084
549,605
113,104
40,802
125,854
19,719
849,084		 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

8. ENDOWMENT FUNDS

Balance at 1 January 2022
Expenditure
Net losses on revaluation
Balance at 31 December 2022		 Permanent
Expendable
Total
£
£
£
754,484
305,137
1,059,621
(3,290)
(171,330)
(174,620)
(35,617)
(14,405)
(50,022)
715,577
119,402
834,979

9. ANALYSIS OF ASSETS BETWEEN FUNDS

Fixed assets investments
Cash at bank and in hand
Other net current assets		 Unrestricted
Endowment
Funds
Funds
Total
£
£
£
14,105
834,979
849,084
48,758
-
48,758
(2,296)
-
(2,296)
60,567
834,979
895,546

10