## **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:
- 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.
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|