CONSOLIDATED
SALISBURY CATHEDRAL
CHORISTERS' ENDOWMENT FUND
REPORT OF THE TRUSTEE
AND
STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2021
CONTENTS
Page
| 1 | Legal and Administrative Information |
|---|---|
| 2 - 3 | Report of the Trustee |
| 4 | Independent Examiner's Report |
| 5 | Statement of Financial Activities |
| 6 | Balance Sheet |
| 7 - 11 | Notes to the Accounts |
Page 1
SALISBURY CATHEDRAL
CHORISTERS' ENDOWMENT FUND
LEGAL AND ADMINISTRATIVE INFORMATION
Trustee: The Chapter of the Cathedral Church of the Blessed Virgin Mary of Salisbury Address: 6 The Close, Salisbury, Wiltshire SP1 2EF Principal Officer: Jackie Molnar - Chapter Clerk Solicitors: Parker Bullen 45 Castle Street, Salisbury, Wiltshire, SP1 3SS Bankers: Lloyds Bank plc 38 Blue Boar Row, Salisbury SP1 1DB Independent Examiner: James Fletcher FCA Crown Chambers, Bridge Street, Salisbury, SP1 2LZ Charity Number: 309485
Page 2
SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND REPORT OF THE TRUSTEE FOR THE YEAR ENDED 2021
The Trustee presents the Annual Report with the Accounts of the Charity for the year ended 31 March 2021, which have been prepared to comply with the provisions of the Charities Act 2011 and the Statement of Recommended Practice on Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective January 2019).
STRUCTURE, GOVERNANCE AND MANAGEMENT
Legal Status
The Choristers' Endowment Fund is a charitable trust of which the Chapter of Salisbury Cathedral is the corporate trustee. It is constituted by the Statutes of Salisbury Cathedral. It has a number of subsidiary charities which are mainly constituted under wills, including the Choristers' Exhibition Fund.
Organisation
Management of the assets of the Choristers' Endowment Fund is delegated to the Chapter Clerk of the Cathedral. The Chapter of Salisbury Cathedral, as the executive body of the Corporate Trustee, meet from time to time as Trustee of the Fund.
Risk Management
The Trustee has assessed the major risks to which the charity is exposed and is satisfied that systems are in place to mitigate the charity's exposure to the major risks.
Trustee Remuneration and Expenses
Neither the Trustee nor any persons connected with them received any remuneration in the year.
OBJECTIVE AND ACTIVITIES FOR THE PUBLIC BENEFIT
Objective
The objective of the Charity is the furtherance of the education of the present and past choristers of Salisbury Cathedral. The Trustee has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Fund's aims and objectives and in planning future activities and setting the grant making policy for the year.
The Charity achieves its objective by applying the income from the Choristers Endowment Fund towards the school fees of the boy choristers. These are selected after public advertisement and voice trials. All boy choristers attend Salisbury Cathedral School.
The scholarships are equivalent to 30 % of the day fee and as far as possible the scholarships are paid out of the income of the Choristers' Endowment Fund with the balance being made up from the General Account of the Cathedral. The Fund also encompasses certain additional bursary funds from which grants are made on the basis of need to supplement the standard scholarships.
Similar arrangements are in place for the Cathedral's girl choristers although these are administered through a separate charity.
Page 3
SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND REPORT OF THE TRUSTEE (CONTINUED) FOR THE YEAR ENDED 2021
ACHIEVEMENTS, PERFORMANCE AND FINANCIAL REVIEW
Review of Activities and Achievements
In the financial year the charity did not actively fundraise from the public or run legacy campaigns or undertake similar fundraising activities in its own right. The trustees were though pleased to receive unsolicited gifts and legacies from people who generously support the charity.
During the year the Choristers Endowment Fund made grants totalling £97,020 in support of the fees of boy choristers and probationers.
Review of Financial Transactions and Position
The income of the Fund was £105,689 whilst grants payable and governance costs totalled £115,954. Taking into account realised and unrealised gains on the Fund's investments of £264,354 in the year the net assets of the Fund increased by £254,089.
Investment Policy and Performance
The Trustee's policy is to invest the Fund's capital in charitable common investment funds, in a mixture of funds based on both equities and fixed-interest stocks. The objective is to obtain a relatively high level of income while still allowing for the possibility of capital growth, subject to a medium degree of risk.
In the 12 months to 31st March 2021 the Choristers' Endowment Fund portfolio had a total return (income plus capital) of 22.7%. This compares with returns from UK equities of 24.3%, from overseas equities of 39.4%, and from fixed interest** of -5.7%.
Sources * MSCI UK Index; MSCI World ex UK Index; *Markit iBoxx £ Gilts Index
Reserves
At the end of the year the net assets of the Choristers' Endowment Fund were £3,000,005 (31.3.20: £2,745,916). This included £2,674,283 (31.3.20: £2,456,551) which was held in endowed funds.
Future plans
The charity will continue to apply the income from the Choristers' Endowment Fund towards the fees of the boy choristers at Salisbury Cathedral
STATEMENT OF THE CHAPTER'S RESPONSIBILITY FOR THE PREPARATION OF THE ACCOUNTS
The members of Chapter, on behalf of the corporate trustee, are responsible for preparing the Annual Report and the accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Charity law requires the members of Chapter, on behalf of the corporate trustee, to prepare accounts for each financial year which give a true and fair view of the financial activities of the charity during the year and of its financial position at the end of the year. In preparing those accounts, the members of Chapter are required to:
-
1) Select suitable accounting policies and then apply them consistently;
-
2) Make judgements and estimates that are reasonable and prudent;
-
3) Follow applicable accounting standards, subject to any material departures disclosed and explained in the accounts;
-
4) Prepare the accounts on the going concern basis unless it is inappropriate to presume the Fund will continue in operation.
-
5) Observe the methods and principles in the Charities SORP
The members of Chapter are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the accounts comply with the provisions of the Charities Act 2011. 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.
Signed on behalf of the Trustee
................................................................... Chapter Clerk
Approved by the Trustee: ................................... 2021
Page 4
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEE OF SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND FOR THE YEAR ENDED 31st MARCH 2021
I report to the Trustee on my examination of the accounts of the Charity for the year ended 31 March 2021, which are set out on pages 5 to 11.
RESPONSIBILITIES AND BASIS OF REPORT
As the charity's Trustee 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 Trustee'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 Commission 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:
(1) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
(2) the accounts do not accord with those records; or
(3) 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.
James Fletcher FCA Chartered Accountant Fletcher & Partners Crown Chambers Bridge Street Salisbury SP1 2LZ
Date:
Page 5
SALISBURY CATHEDRAL CHORISTERS ENDOWMENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 2021
| Note Income and endowments from: Voluntary income Legacies and donations Investment income Total income Expenditure on: Charitable activities Grants paid 2 Insurance 3 Investment Management Fees Repairs Governance costs 3 Total expenditure Net income / (expenditure) before gains and losses on investments Net gains / (losses) on investments Realised gains / (losses) on investments 5 Unrealised gains/(losses) on investments 5 Net income / (expenditure) Transfers between funds Net movement in funds Fund balances brought forward Fund balances carried forward |
Restricted Funds Endowment General Exhibition Wort Total Funds 10 - - 10 - 99,836 2,938 2,905 105,679 - _ _ 99,846 2,938 2,905 105,689 - 97,020 - - 97,020 - 836 - - 836 - 1,132 491 392 2,015 15,043 - - - - - 1,040 - - 1,040 - _ _ 100,028 491 392 100,911 15,043 (182) 2,447 2,513 4,778 (15,043) - - - - - 17,482 8,046 6,051 31,579 232,775 17,300 10,493 8,564 36,357 217,732 - - - - - _ _ 17,300 10,493 8,564 36,357 217,732 188,761 56,539 44,065 289,365 2,456,551 _ _ 206,061 67,032 52,629 325,722 2,674,283 |
Total 2021 10 105,679 105,689 97,020 836 17,058 - 1,040 115,954 (10,265) - 264,354 254,089 - 254,089 2,745,916 3,000,005 |
Total 2020 1,408 111,043 |
|---|---|---|---|
| 112,451 | |||
| 92,922 797 16,354 576 960 |
|||
| 111,609 | |||
| 842 - (7,837) (6,995) - |
|||
| (6,995) 2,752,911 |
|||
| 2,745,916 |
Page 6
SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND BALANCE SHEET AS AT 31 MARCH 2021
| Notes FIXED ASSETS Investment properties 4 Investments 5 CURRENT ASSETS Debtors 6 Cash at bank and in hand CREDITORS: Amounts falling due within one year 7 NET CURRENT ASSETS NET ASSETS Representing: FUNDS Endowment Funds 8 Restricted Funds 9 Signed on behalf of the Trustee: ......................... Chapter Clerk Approved by the Trustee: ........................ |
31st March 2021 1,010,000 1,678,015 2,688,015 55,394 267,413 322,807 10,817 311,990 £3,000,005 2,674,283 325,722 £3,000,005 .................................... ....................... 2021 |
31st March 2020 | 31st March 2020 |
|---|---|---|---|
| 55,394 267,413 322,807 10,817 ..................... ..................... |
22,982 352,308 375,290 85,200 |
1,010,000 1,445,826 |
|
| 2,455,826 290,090 |
|||
| £2,745,916 | |||
| 2,456,551 289,365 |
|||
| £2,745,916 | |||
Page 7
SALISBURY CATHEDRAL CHORISTERS ENDOWMENT FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2021
1. ACCOUNTING POLICIES
a. Basis of Accounting
The accounts have been prepared in accordance with the Charities Act 2011, the Statement of
Recommended Practice on Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective January 2019).
Salisbury Cathedral Choristers Endowment Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless stated in the relevant accounting policy note.
b. Preparation of the accounts on a going concern basis
The charity is a grant making trust, with a significant investment portfolio and cash reserves. The charity has a low level of overheads and makes discretionary grants. The Trustee is confident that the charity is a going concern.
c. Entities included in the accounts
These accounts include the Choristers' Endowment Fund and the Choristers' Exhibition Fund.
d. Properties
The properties known as Wren Hall (which is let to Sarum Studio) and 57A The Close
(which is let to Salisbury Cathedral School), are considered to be investment properties from the viewpoint of the Choristers' Endowment Fund and are therefore shown in the accounts at market value.
e. Investments and Investment Income
Investments are included at market value at the balance sheet date. Any gain or loss on revaluation is taken to the SOFA. Investment income is accounted for in the period in which the charity is entitled to receipt.
f. Donations and fund accounting
Donations for activities restricted by the wishes of the donor are taken to “restricted funds” where these wishes are legally binding on the Trustee. Donations required to be retained as capital in accordance with the donor’s wishes are accounted for as “endowments” - permanent or expendable according to the nature of the restriction.
g. Expenditure
Expenditure is accounted for on an accruals basis.
2 ANALYSIS OF CHARITABLE ACTIVITIES
| Provision of education: Educational grants |
31.3.21 £97,020 |
31.3.20 £92,922 |
|||
|---|---|---|---|---|---|
The educational grants were paid to Salisbury Cathedral in partial funding of the education of the boy choristers.
The members of Chapter received no remuneration or reimbursement of expenses from the Fund during either of these years.
3 SUPPORT COSTS
| Insurance Independent Examiner (governance) |
836 1,040 £1,876 |
797 960 |
|---|---|---|
| £1,757 |
Support costs are incidental to the operation of the charity and are allocated to charitable activities.
Page 8
SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31st MARCH 2021
| INVESTMENT PROPERTIES Market valuation As at 1st April 2020 Revaluation As at 31 March 2021 |
31.3.21 Choristers' Endowment Fund 1,010,000 - £1,010,000 |
31.3.20 Choristers' Endowment Fund |
31.3.20 |
|---|---|---|---|
| 1,010,000 - |
|||
| £1,010,000 |
4. INVESTMENT PROPERTIES
The investment properties comprise the boarding accommodation for choristers which is let to the Cathedral School and Wren Hall which is let to Sarum Studio.
Both properties were valued by Strutt and Parker as at March 2016, the Trustee does not expect a current valuation to be materially different.
5. INVESTMENTS
| Market value at 1st April 2020 Additions Disposals Unrealised gains / (losses) in year Market value at 31 March 2021 Cost at 31 March 2021 Cost at 31st March 2020 The investments consist of :- CCLA Cash held for investment Cash held by Salisbury Cathedral Choral Foundation INVESTMENTS - PRIOR YEAR Market value at 1st April 2019 Unrealised gains / (losses) in year Market value at 31 March 2020 Cost at 31 March 2020 Cost at 31st March 2019 The investments consist of :- CCLA Cash held for investment Cash held by Salisbury Cathedral Choral Foundation |
Choristers' Endowment Fund 1,290,456 - (15,101) 219,477 £1,494,832 £993,819 £993,819 Choristers' Endowment Fund 1,312,784 (22,328) £1,290,456 £993,819 £993,819 |
Choristers' Exhibition Fund 79,540 - (6) 14,922 £94,456 £62,241 £62,241 Choristers' Exhibition Fund 80,091 (551) £79,540 £62,241 £62,241 |
Wort Organ Fund 75,830 - - 12,897 £88,727 £58,429 £58,429 Wort Organ Fund 77,142 (1,312) £75,830 £58,429 £58,429 |
Total |
|---|---|---|---|---|
| 1,445,826 - (15,107) 247,296 |
||||
| £1,678,015 | ||||
| £1,114,489 | ||||
| £1,114,489 | ||||
| 1,678,015 - - |
||||
| £1,678,015 | ||||
| Total | ||||
| 1,470,017 (24,191) |
||||
| £1,445,826 | ||||
| £1,114,489 | ||||
| £1,114,489 | ||||
| 1,430,719 6 15,101 |
||||
| £1,445,826 |
Page 9
SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31ST MARCH 2021
6. DEBTORS
| Accrued Income Salisbury Cathedral Choral Foundation |
|
|---|---|
7. CREDITORS: Amounts falling due within one year
| Salisbury Cathedral Deferred Income Accruals |
- 9,817 1,000 £10,817 |
74,423 9,817 960 |
|---|---|---|
| £85,200 |
8. ENDOWMENTS
| General Fund Exhibition Fund Wort Organ Fund |
Balance at 1st April 2020 2,345,065 55,131 56,355 £2,456,551 |
Movement Income / Expenditure (14,064) (478) (501) (£15,043) |
Movement | in Funds Gains/ (Losses) 217,191 7,845 7,739 £232,775 |
Balance at 31 March 2021 2,548,192 62,498 63,593 |
||
|---|---|---|---|---|---|---|---|
| £2,674,283 |
The permitted usage of the income of these funds is shown in Note 9 below.
8. ENDOWMENTS - PRIOR YEAR
| General Fund Exhibition Fund Wort Organ Fund |
Balance at 1st April 2019 2,365,822 55,410 57,114 £2,478,346 |
Movement Income / Expenditure (13,611) (432) (498) (£14,541) |
Movement | in Funds Gains/ (Losses) (7,146) 153 (261) (£7,254) |
Balance at 31 March 2020 2,345,065 55,131 56,355 |
||
|---|---|---|---|---|---|---|---|
| £2,456,551 |
Page 10
SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31st MARCH 2021
9. RESTRICTED FUNDS
| General Fund Exhibition Fund Wort Organ Fund |
Balance at 1 April 2020 188,761 56,539 44,065 £289,365 |
Movement in Funds Incoming Expenditure Resource's and Transfer's 99,846 (100,028) 2,938 (491) 2,905 (392) £105,689 (£100,911) |
Gains and losses 17,482 8,046 6,051 £31,579 |
Balance at 31 March 2021 |
|---|---|---|---|---|
| 206,061 67,032 52,629 |
||||
| £325,722 |
RESTRICTED FUNDS - PRIOR YEAR
| General Fund Exhibition Fund Wort Organ Fund |
Balance at 1 April 2019 179,231 53,787 41,547 £274,565 |
Movement in Funds Incoming Expenditure Resource's and Transfer's 106,357 (96,286) 3,024 (420) 3,070 (362) £112,451 (£97,068) |
Gains and losses (541) 148 (190) (£583) |
Balance at 31 March 2020 |
|---|---|---|---|---|
| 188,761 56,539 44,065 |
||||
| £289,365 |
Choristers' Endowment Fund
This was formally established on 6 May 1314 when King Edward II granted to Simon of Ghent, Bishop of Salisbury, a licence in mortmain to grant to the Dean and Chapter certain property for the support and education of the boy choristers for ever. The income from the General Fund is used to contribute to the school fees of the boy choristers. The income from the Bursary Funds is used to supplement the income of the General Fund to enable additional support to choristers as needed.
Choristers' Exhibition Fund
This fund was created by a number of legacies in the first half of the twentieth century. The income is to provide bursaries to (boy and girl) choristers to assist with the cost of their education after they leave the Cathedral School.
Wort organ fund
The income of the Wort Fund is to pay for the Wort Organ Scholarship
10. RELATED PARTY TRANSACTIONS
The Choristers Endowment Fund is controlled by the Chapter of Salisbury Cathedral which constitutes its corporate trustee. The Chapter is the sole member of Salisbury Cathedral School Limited which operates the Cathedral School.
During the year the charity paid £97,020 (2019: £92,922) to Salisbury Cathedral in grants towards the boy choristers' fees. The School paid rent to the charity of £36,399 (2020: £37,700) for 57A The Close which is used as the boarding house.
11. COVID-19 PANDEMIC
The charity is not significantly affected by the Covid-19 pandemic. The investment portfolio has performed well and the Trustee is able to take a long term view in determining the level of grants awarded in future years.
Page 11
SALISBURY CATHEDRAL CHORISTERS ENDOWMENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 2020
| Note Income and endowments from: Voluntary income Legacies and donations Investment income Total income Expenditure on: Charitable activities Grants paid 2 Insurance 3 Management Fees Repairs Governance costs 3 Total expenditure Net income / (expenditure) before gains and losses on investments Net gains / (losses) on investments Realised gains / (losses) on investments 5 Unrealised gains/(losses) on investments 5 Net income / (expenditure) Transfers between funds Net movement in funds Fund balances brought forward Fund balances carried forward |
Restricted Funds Endowment General Exhibition Wort Total Funds 1,408 - - 1,408 - 104,949 3,024 3,070 111,043 - _ _ 106,357 3,024 3,070 112,451 - 92,922 - - 92,922 - 797 - - 797 - 1,031 420 362 1,813 14,541 576 - - 576 - 960 - - 960 - _ _ 96,286 420 362 97,068 14,541 10,071 2,604 2,708 15,383 (14,541) - - - - - (541) 148 (190) (583) (7,254) 9,530 2,752 2,518 14,800 (21,795) - - - - - _ _ 9,530 2,752 2,518 14,800 (21,795) 179,231 53,787 41,547 274,565 2,478,346 _ _ 188,761 56,539 44,065 289,365 2,456,551 |
Total 2020 1,408 111,043 |
|---|---|---|
| 112,451 | ||
| 92,922 797 16,354 576 960 |
||
| 111,609 | ||
| 842 - (7,837) (6,995) - |
||
| (6,995) 2,752,911 |
||
| 2,745,916 |