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|