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2023-03-31-accounts

SALISBURY CATHEDRAL

CHORISTERS' ENDOWMENT FUND

REPORT OF THE TRUSTEE

AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2023

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: Haysmacintyre LLP 10 Queen Street Place, London, EC4R 1AG Charity Number: 309485

Page 2

SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND REPORT OF THE TRUSTEE FOR THE YEAR ENDED 31st MARCH 2023

The Trustee presents the Annual Report with the Accounts of the Charity for the year ended 31 March 2023, 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) (Second edition, 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 31st MARCH 2023

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 £100,230 in support of the fees of boy choristers and probationers.

Review of Financial Transactions and Position

The income of the Fund was £114,120 whilst grants payable and governance costs totalled £120,152. Taking into account realised and unrealised losses on the Fund's investments of £110,642 in the year the net assets of the Fund decreased by £116,174.

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 2023 the Choristers' Endowment Fund portfolio had a total return (income plus capital) of (3.9) %. This compares with returns from UK equities of 2.95%, from overseas equities of (1.28) %, and from fixed interest** of (17.04)%.

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 £3,059,646 (2022: £3,175,820). This included £2,695,909 (2022: £2,809,496) 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:

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.

Jackie Molnar

Signed on behalf of the Trustee ................................................................... Chapter Clerk

Approved by the Trustee: 30 January 2024

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEE OF SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND FOR THE YEAR ENDED 31st MARCH 2023

I report to the Trustee on my examination of the accounts of the Charity for the year ended 31 March 2023, which are set out on pages 5 to 11.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The trustee is responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the 2011 Act"). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.

I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of 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 matters have come to my attention 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 2011 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.

Lee Stokes FCA Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Date: 30 January 2024

Page 5

SALISBURY CATHEDRAL CHORISTERS ENDOWMENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st MARCH 2023

Note
Income and endowments from:
Voluntary income
Legacies and donations
Sundry income
Investment income
Total income
Expenditure on:
Charitable activities
Grants paid
2
Insurance
3
Investment Management Fees
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		 General
4,010
1,060
103,469
_
108,539
100,230
923
1,183
1,300
_
103,636
4,903
-
(7,464)
(2,561)
-
_
(2,561)
232,247
_
229,686		 Restricted Funds
Exhibition
Wort
-
-
-
-
3,097
3,084
_
3,097
3,084
-
-
-
-
539
425
-
-
_
539
425
2,558
2,659
-
-
(2,556)
(2,687)
2
(28)
-
-
_
2
(28)
74,723
59,354
_
74,725
59,326		 Total
4,010
1,060
109,650
114,720
100,230
923
2,147
1,300
104,600
10,120
-
(12,707)
(2,587)
-
(2,587)
366,324
363,737		 Endowment
Funds
-
-
-
-
-
-
15,652
-
15,652
(15,652)
-
(97,935)
(113,587)
-
(113,587)
2,809,496
2,695,909		 Total
2023
4,010
1,060
109,650
114,720
100,230
923
17,799
1,300
120,252
(5,532)
-
(110,642)
(116,174)
-
(116,174)
3,175,820
3,059,646		 Total
2022
4,010
-
108,809
112,819
88,848
872
20,598
1,040
111,358
1,461
-
174,354
175,815
-
175,815
3,000,005
3,175,820

Page 6

SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND BALANCE SHEET AS AT 31 MARCH 2023

Notes
31st March 2023
FIXED ASSETS
Investment properties
4
1,010,000
Investments
5
1,703,331
2,713,331
CURRENT ASSETS
Debtors
6
21,164
Cash at bank and in hand
330,201
351,365
CREDITORS: Amounts falling due
within one year
7
5,050
NET CURRENT ASSETS
346,315
NET ASSETS
£3,059,646
Representing:
FUNDS
Endowment Funds
8
2,695,909
Restricted Funds
9
363,737
£3,059,646
Signed on behalf of the Trustee:
.............................................................
Chapter Clerk
Approved by the Trustee:
30 January2024
Jackie Molnar		 31st March 2022 31st March 2022
39,061
306,347
345,408
11,359		 1,010,000
1,831,771
2,841,771
334,049
£3,175,820
2,809,496
366,324
£3,175,820

Page 7

SALISBURY CATHEDRAL CHORISTERS ENDOWMENT FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2023

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) (Second edition, 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		 31.3.23
£100,230		 31.3.22
£88,848

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)		 923
1,300
£2,223		 872
1,040
£1,912

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 2023

INVESTMENT PROPERTIES
Market valuation
As at 1st April 2022
Revaluation
As at 31 March 2023		 31.3.23
Choristers'
Endowment
Fund
1,010,000
-
£1,010,000		 31.3.22
Choristers'
Endowment
Fund		 31.3.22
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 September 2022, the Trustee does not expect a current valuation to be materially different.

5. INVESTMENTS

Market value at 1st April 2022
Additions
Disposals - Management Fees
Unrealised gains / (losses) in year
Market value at 31 March 2023
Cost at 31 March 2023
Cost at 31st March 2022
The investments consist of :-
CCLA
INVESTMENTS - PRIOR YEAR
Market value at 1st April 2021
Increase in cash
held for investment
Unrealised gains / (losses) in year
Market value at 31 March 2022
Cost at 31 March 2022
Cost at 31st March 2021
The investments consist of :-
CCLA		 Choristers'
Endowment
Fund
1,631,501
(15,818)
(99,773)
£1,515,910
£1,297,000
£1,297,000
Choristers'
Endowment
Fund
1,494,832
136,669
£1,631,501
£993,819
£993,819		 Choristers'
Exhibition
Fund
103,431
(1,041)
(4,948)
£97,442
£80,342
£80,342
Choristers'
Exhibition
Fund
94,456
8,975
£103,431
£62,241
£62,241		 Wort
Organ
Fund
96,839
(939)
(5,921)
£89,979
£76,941
£76,941
Wort
Organ
Fund
88,727
8,112
£96,839
£58,429
£58,429		 Total
1,831,771
(17,798)
(110,642)
£1,703,331
£1,454,283
£1,454,283
£1,703,331
Total
1,678,015
153,756
£1,831,771
£1,114,489
£1,114,489
£1,831,771

Page 9

SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31ST MARCH 2023

6. DEBTORS

Accrued Income
Salisbury Cathedral

7. CREDITORS: Amounts falling due within one year

Deferred Income
Accruals
ENDOWMENTS
General Fund
Exhibition Fund
Wort Organ Fund		 Balance at
1st April
2022
2,674,636
66,955
67,905
£2,809,496		 Movement
Income /
(Expenditure)
(14,635)
(503)
(514)
(£15,652)		 Movement 3,750
1,300
£5,050
in Funds
Gains/
(Losses)
(92,308)
(2,514)
(3,113)
(£97,935)		 10,319
1,040
£11,359
Balance at
31 March
2023
2,567,693
63,938
64,278
£2,695,909

8. ENDOWMENTS

The permitted usage of the income of these funds is shown in Note 9 below.

ENDOWMENTS - PRIOR YEAR

General Fund
Exhibition Fund
Wort Organ Fund		 Balance at
1st April
2021
2,548,192
62,498
63,593
£2,674,283		 Movement
Income /
(Expenditure)
(16,946)
(576)
(595)
(£18,117)		 Movement in Funds
Gains/
(Losses)
143,390
5,033
4,907
£153,330		 Balance at
31 March
2022
2,674,636
66,955
67,905
£2,809,496

Page 10

SALISBURY CATHEDRAL CHORISTERS' ENDOWMENT FUND NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31st MARCH 2023

9. RESTRICTED FUNDS

RESTRICTED FUNDS
General Fund
Exhibition Fund
Wort Organ Fund		 Balance at
1 April 2022
232,247
74,723
59,354
£366,324		 Movement in Funds
Incoming
Expenditure
Resources
andTransfers
108,539
(103,636)
3,097
(539)
3,084
(425)
£114,720
(£104,600)		 Gains
/(losses)
(7,464)
(2,556)
(2,687)
(£12,707)		 Balance at
31 March 2023
229,686
74,725
59,326
£363,737

RESTRICTED FUNDS - PRIOR YEAR

General Fund
Exhibition Fund
Wort Organ Fund		 Balance at
1 April 2021
206,061
74,723
59,354
£325,722		 Movement in Funds
Incoming
Expenditure
Resources
andTransfers
106,722
(92,131)
3,046
(618)
3,051
(492)
£105,689
(£93,241)		 Gains
/(losses)
11,595
5,263
4,166
£21,024		 Balance at
31 March 2022
232,247
74,723
59,354
£366,324

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 £100,230 (2022: £88,848) to Salisbury Cathedral in grants towards the boy choristers' fees. The School paid rent to the charity of £36,000 (2022: £36,400) for 57A The Close which is used as the boarding house.

Page 11

SALISBURY CATHEDRAL CHORISTERS ENDOWMENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 2022

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		 General
4,010
102,712
_
106,722
88,848
872
1,371
-
1,040
_
92,131
14,591
-
11,595
26,186
-
_
26,186
206,061
_
232,247		 Restricted Funds
Exhibition
Wort
-
-
3,046
3,051
_
3,046
3,051
-
-
-
-
618
492
-
-
-
-
_
618
492
2,428
2,559
-
-
5,263
4,166
7,691
6,725
-
-
_
7,691
6,725
67,032
52,629
_
74,723
59,354		 Endowment
Total
Funds
4,010
-
108,809
-
112,819
-
88,848
-
872
-
2,481
18,117
-
-
1,040
-
93,241
18,117
19,578
(18,117)
-
-
21,024
153,330
40,602
135,213
-
-
40,602
135,213
325,722
2,674,283
366,324
2,809,496		 Total
2022
4,010
108,809
112,819
88,848
872
20,598
-
1,040
111,358
1,461
-
174,354
175,815
-
175,815
3,000,005
3,175,820