2024-12-31-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 2024

CONTENTS	PAGE
Annual Report of The Council	2 - 6
Independent Examiner's Report	7
Statement of Financial Activities	8
Balance Sheet	9
Notes to the Financial Statements	10- 12

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

The Council is pleased to present their report together with the financial statements of the charity for the year ended 31 December 2024.

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 Dr G Giles Chairman T Wood Vice-chairman M Snoswell appointed in the period Treasurer P Smith Archdeaconry Representative M Chesterfield Mrs J Aldous appointed in the period Mr S Berry Mr D Carder Mrs B Jacobs Mrs B Smith appointed in the period Mrs A White Mr A Sldous

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 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;
Archdeaconry representatives are appointed for a three-year period.
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 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 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 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 Chapter as to the requirements of the Cathedral;
makes grants to the 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 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

In 2022 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. This year, 2024, was always going to be one of consolidation and a return to more regular levels of activity. This has proved to be the case, although we were delighted to receive a legacy of £3,718 which has boosted income.

Social events have taken place with a well attended Viennese concert which made a useful contribution to funds.

FINANCIAL REVIEW

Review of the activities

The accounts are for the year ended 31 December 2024. Shows that the Association has faced a reduction in income from donations and legacies in the year under review, it has managed to maintain a stable position through diversified investments and endowment funds. The rise in expenditure, particularly on grants and support costs, needs to be balanced with efforts to grow income, especially from fundraising sources. However, the charity remains in a strong financial position, with total funds increasing and continued investment returns supporting its long-term sustainability.

Total Income

for 2024 amounted to £51,450, a decrease from £69,330 in 2023. This 26% reduction was mainly driven by a significant decline in Donations and Legacies, which dropped from £21,173 in 2023 to just £3,718 in 2024. - Membership Subscriptions and Social Events remained relatively stable, with a slight decrease in membership income from £9,967 in 2023 to £9,374 in 2024. Social event income slightly increased to £8,965 from £8,379 in 2023. - Investment income remained stable at £29,333, close to the £29,631 earned in 2023, reflecting steady returns from the charity’s investments.

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

Total Expenditure

This increased from £31,249 in 2023 to £40,695 in 2024, representing a 30% rise. This increase was driven by:

A significant rise in Grants to the Chapter for the upkeep of Rochester Cathedral: up from £7,500 to £11,505 in 2024. - Increased spending on Social Events (£6,367, up from £4,642 in 2023).
Support Costs saw an increase to £19,249 from £15,701, with a rise in salary and administrative expenses, notably a higher spend on annual report and printing costs.

Net Income and Investment Gains

Net Income for the year was £10,754, a sharp decline compared to £38,081 in 2023. This is primarily due to the lower income from donations and legacies and the higher expenditures on grants and support costs.
Gains on Revaluation of Investments contributed a strong £39,921 in 2024, a significant improvement over the

£10,611 gain in 2023. This gain helped offset the lower net income and contributed to an overall increase in funds.

Funds and Balance Sheet Position

Total Funds carried forward as of 31 December 2024 amounted to £994,913, an increase from £944,238 in 2023. This growth was driven by both the investment gains and the stable growth in endowment funds.
Unrestricted Funds increased to £145,831, up from £102,174 in 2023, reflecting a solid buffer for general charity activities.
Endowment Funds grew from £842,064 to £849,082, primarily due to investment gains.

Investment Performance

The charity's investment portfolio had a market value of £892,736 as of 31 December 2024, compared to £856,289 in 2023, reflecting a positive return on investment.
The portfolio is diversified, with allocations to UK and global equities, bonds, multi-asset funds, and property. The gains were particularly driven by equities and bonds.

Key Financial Ratios and Trends

Income/Expenditure Ratio: Total income fell by 26%, but expenditure increased by 30%, leading to a modest surplus of £10,753. However, this trend should be monitored to ensure the sustainability of operations.
Investment Return: The charity experienced a solid return from its investments, which contributed significantly to the overall financial health.

Reserves policy

The Council has 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 considers that the most appropriate level of free reserves at 31 December 2024 should equate to one year's average charitable income, excluding legacies. The Council's best estimate of the amount required is in the region of £50,000. The actual free reserves were £145,831.

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

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. It has found that specialised unit trusts designed for the charity sector meet its requirements to generate income and capital growth.

During the year our investments generated income of £29,333 and a capital growth of 4.66%, both of which are marked improvements over the performance in 2023. 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.

Responsibilities of The Council

The Council is 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 charity will continue in business.

The Council is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the constitution. It is 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 31 March 2025 and signed on its 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 2024, which are set out on pages 7 to 11.

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 31 March 2025

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 2024

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 Chapter for the upkeep of Rochester Cathedral - social events - book of memory - support costs 3 Other costs - investment management fees Total resources expended NET INCOME (EXPENDITURE) Gains on revaluation of investments NET MOVEMENT IN FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted Total Total income Endowment Funds Funds funds funds 2024 2023 £ £ £ £ 3,718 - 3,718 21,173 9,374 - 9,374 9,967 8,965 - 8,965 8,379 60 - 60 180 29,333 - 29,333 29,631
	51,450 - 51,450 69,330
	11,505 - 11,505 7,500 6,367 - 6,367 4,642 100 - 100 - 19,249 - 19,249 15,701
	37,221 - 37,221 27,843 58 3,416 3,474 3,406
	37,280 3,416 40,695 31,249
	14,170 (3,416) 10,754 38,081 29,487 10,434 39,921 10,611
	43,657 7,018 50,675 48,692 102,174 842,064 944,238 895,546
	145,831 849,082 994,913 944,238

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 10 to 12 form part of these financial statements.

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL BALANCE SHEET AT 31 DECEMBER 2024

note FIXED ASSETS Investments 7 CURRENT ASSETS Stocks Debtors and prepayments 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	£ £ £ £ 892,736 856,289 667 1,364 200 39 110,449 95,541 111,316 96,944 (9,139) (8,995) 102,177 87,949 994,913 944,238 849,082 842,064 145,831 102,174 994,913 944,238 2024 2023	£ £ £ £ 892,736 856,289 667 1,364 200 39 110,449 95,541 111,316 96,944 (9,139) (8,995) 102,177 87,949 994,913 944,238 849,082 842,064 145,831 102,174 994,913 944,238 2024 2023

		944,238
		842,064 102,174
		944,238

The notes on pages 10 to 12 form part of these financial statements.

Approved by the Council on 31 March 2025 and signed on its behalf

P Smith

Treasurer

THE ASSOCIATION OF THE FRIENDS OF ROCHESTER CATHEDRAL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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 2024

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 Annual report, printing, postage and stationery Independent examiner	2024 £ 9,690 3,783 716 4,340 720 19,249	2023 £ 9,019 4,382 575 1,125 600
		15,701

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 2024

7. INVESTMENT ASSETS

Market value at beginning of year Investments sold and cash withdrawn Investment management fees Net gains on revaluation Market value at end of year Investments comprise various managed unit funds: - UK and global equities - Bonds - Multi-asset funds - Property - Cash	2024 £ 856,289 - (3,474) 39,921 892,736 576,090 135,649 138,548 42,449 - 892,736	2023 £ 849,084 - (3,406) 10,611
		856,289
		559,726 130,073 14,656 110,664 41,170
		856,289

8. ENDOWMENT FUNDS

Balance at 1 January 2024 Expenditure Net gains on revaluation Balance at 31 December 2024	Permanent Expendable Total £ £ £ 721,649 120,415 842,064 (2,870) (546) (3,416) 8,942 1,492 10,434
	727,721 121,361 849,082

9. ANALYSIS OF ASSETS BETWEEN FUNDS

Fixed assets investments Cash at bank and in hand Other net current assets	Unrestricted Endowment Funds Funds Total £ £ £ 43,654 849,082 892,736 110,449 - 110,449 (8,272) - (8,272)
	145,831 849,082 994,913