## ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31[ST] December 2019** ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 ## **Contents** - Board report - Structure, governance and management - Legal and administrative information - Independent auditor’s report to the Board - Consolidated statement of financial activities - Consolidated balance sheet - Entity balance sheet - Consolidated cash flow statement - Notes to the financial statements 1 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 ## Board Report ## **About us** St. Anne’s Cathedral Belfast exists to glorify God and proclaim Christ’s message of love. Worship remains central to the life of the Cathedral today through the daily offering of prayer and holy communion. The Cathedral Church of St Anne Belfast was consecrated in 1904 when only the Nave had been completed. It stands on the site of the 18[th] Parish Church of St Anne whose incumbents were Vicars of Belfast. Subsequently the Baptistery, the Chapel of the Holy Spirit, the Choir and Ambulatory, the South Transept containing the Chapel of Unity, the North Transept containing the Royal Irish Rangers Chapel, and most recently the Spire of Hope have been added. The Cathedral is built in Hiberno-Romanesque style and has an excellent acoustic. There are some excellent carvings, mosaics and stained glass; oak choir stalls, pulpit and other furnishings; a highly regarded Harrison & Harrison 4-manual organ mostly dating from 1907 and a Wells-Kennedy chamber organ. Adjoining the Cathedral is a vestry and office block containing the Hall and Music Rooms. It is variously known as St Anne’s Cathedral or Belfast Cathedral although there is also St Peter’s Roman Catholic Cathedral in the city. Through our worship, from the stillness of Morning Prayer to the vibrancy of the Eucharist or the beauty of a Choral Evensong we seek to fulfil our daily mission. Music is integral to our worship and has been central to the life of the Cathedral since its establishment. A strong musical tradition is continued today with adult lay clerks singing with both a boys’ and girls’ choirs. St Anne’s Cathedral is home to an active Christian community, made up of people of all ages and from many different backgrounds, including our worshipping congregations, choirs, volunteers, staff and many other individuals. The Cathedral is a parish church Cathedral, meaning that as well as being a Cathedral for the dioceses of Connor, Down and Dromore, it also serves a geographical parish and urban community. It is a place for large civic, diocesan and national events but also hosts weddings, funerals and baptisms for those who live in the city of Belfast and further afield. ## **Our vision and priorities** The Cathedral’s daily mission, expressing how we fulfil our purpose, is, in the words of Dean Forde to: 1. Make the Cathedral a place of prayer and living worship ministering to the city and ensuring the Cathedral was a door to pass through not a door to pass by. 2. Deliver excellence in music 3. Tackle the financial challenges we face within the ethos of the Cathedral 4. Build on the tradition of Black Santa and working with other churches to develop the Cathedral as a place of social care and outreach 2 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 5. Help the Cathedral to become a focus for ministry to the students and staff of Ulster University 6. Make the Cathedral a place for Christian thinking and debate and a safe place for challenging dialogue 7. Minister to the Cathedral Parish and manage the Cathedral staff as a model of Christian community 8. Ensure the Cathedral takes a lead in the development of the Cathedral Quarter 9. Develop partnerships with the parishes of Belfast, and the Dioceses of Connor and Down and Dromore. The Charity’s key objectives are: - The advancement of the Christian faith - To own and manage the real and personal property known as the Cathedral of St. Anne, Belfast, to accept gifts, to grant leases and to construct. Alter, maintain and repair the Cathedral property - To maintain a Christian Cathedral - The promotion of Christian worship, support for community charities, musical and religious education and the pastoral support of parishioners; and - The preservation and maintenance of the Cathedral buildings In order to fulfil these objectives, the Board of the Cathedral of St, Anne employs the following strategies: - The maintenance of the clergy. - The organisation of daily worship and services to enable community organisations to celebrate their identities and contribute to society locally and nationally - The provision of information via local and national media, websites, monthly e-mails and magazines - The hosting of services of healing - The provision of choral education The Cathedral is fundamentally a community of faith which exists to serve the people of Belfast and beyond. In April 2019 following the murder of journalist Lyra McKee her family requested that her funeral be held in the Cathedral. 3 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 Underlining the themes of unity and acceptance, Lyra McKee’s family requested that the funeral service be held in the cathedral due to its strong record of ecumenism and widely acknowledged perception as a “shared space”. The Cathedral was one of the first major Protestant churches to welcome Catholic clergy to its pulpit, and previously hosted the Dalai Lama. Present at the funeral were the Taoiseach Leo Varadkar, Prime Minister Theresa May, President Michael D Higgins and Lord Lieutenant of Belfast Fionnuala Jay-O’Boyle, representing HM The Queen. They were joined by the Tanaiste, Simon Coveney, Secretary of State for NI Karen Bradley and Minister for Children and Youth Affairs, Katherine Zappone. They walked to the front row together behind Lyra’s mother, sisters, brothers and her partner Sara Canning in a slow procession and a tangible gesture of unity. Dean Stephen Forde opened the funeral with an expression of “our grief and our shock, our tears and our loss” and said: “Lyra was a person who broke down barriers and reached across boundaries. This was her hallmark in life. This is her legacy in death. As a journalist, she pursued the truth wherever it took her, never content with the sullen silence of unanswered questions. Lyra was a child of the Good Friday agreement . . . She grew up to champion its hope for a society that was free from the prejudices of the past, and open to the possibility of a new future for the peoples of these islands,”. Father Martin Magill, in an impassioned homily which had the congregation on its feet in spontaneous applause before he had finished, described the deep desire throughout the community to make Lyra’s death the doorway to a new beginning. The tragic death of Lyra McKee and her funeral service are widely accredited with stimulating the efforts to restart the NI Executive and Assembly which culminated in the New Decade -New Approach Agreement. In the financial year 2019 the Cathedral’s overall expenditure continued to exceed total income generation, although some success was achieved in reducing the deficit over previous years. These savings were largely achieved through a reduction in staff numbers. The Board achieved this reduction by restructuring the Music Department and deciding not to replace the Cathedral Press Officer and Cathedral Tourism Manager when those posts became vacant. The work of these posts was subsumed within the job roles of other staff members. The remaining excess in expenditure over income was met once again by a draw down from existing investment resources. The Cathedral Board remained committed to reaching a balance between expenditure and income within as short a time as possible. During 2019 it was calculated that no reduction in the current annual deficit would see the Cathedral’s reserves exhausted by 2027. The Board gratefully accepted the generous offer from the Diocese of Connor to share in the services of the Diocesan Development Officer. The Diocesan Development O was permitted to devote a portion of his time to act as Cathedral General Manager. The Board has benefitted from the business experience of Trevor Douglas as General Manager to professionalise the administration of the Cathedral and secure grant funding for the cathedral operation. 4 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 In 2019 the Cathedral completed the objectives of the Heritage Lottery Sustainability Grant designed to develop the resilience of organisations tasked with the operation and management of important heritage buildings. Crucially these grants have also provided much needed investment to the way we can tell our story, in new and more diverse activities, taking forward our formal and informal learning. In turn this will help raise our profile further, bringing in more visitors and delivering increased financial sustainability. The Board commenced preparatory work to make application to the Heritage Lottery Fund’s “Horizon” Programme. This competitive UK fund can make substantial awards to successful projects that not only preserve the historic fabric of iconic heritage buildings but also contribute major community benefit. If successful sufficient funding could be secured to stabilise the structure of the Cathedral building and also achieve a major tourism project which would place the cathedral among the top visitor attractions in Northern Ireland. ## **Our public benefit** The Board confirms it has due regard to the public benefit guidance published by the Charity Commission for Northern Ireland (CCNI) in determining the activities of the Cathedral. The Cathedral not only serves the public community of Belfast daily in its religious and charitable work but is an active resource of local and national public importance in the promotion of religion, music, education, history, heritage and architecture. Throughout the year through regular weekday services of Choral Evensong, the gathering of the Cathedral congregation on Sundays, through the Advent discussion series delivered in partnership with Corrymeela and a range of special services the Cathedral provides shared space for the city. Throughout the month of December 2019, the cathedral hosted multiple schools’, community, charity and business carol services. For many of these organisations such services are a focal point for their fundraising. In addition to the wide range of activities described above the Cathedral also supports the work of numerous other local and international charities through the annual Sit-Out Collection. In 1976 Dean Samuel Crooks sat outside the Cathedral before Christmas with a barrel and brazier, requesting donations for charities. This has been continued by subsequent Deans [along with other members of the Cathedral clergy and the Chapter] who have been referred to in the press as “Black Santa”. The annual Sit-Out has become a highly publicised event in the city prior to Christmas each year with donations from passers-by, other individuals, businesses, schools, churches, clubs and societies. Recently the annual total raised has been around £200,000 which is distributed to Christian Aid and a large number of local charities at a “Good Samaritan” Evensong in February. The Dean and the Canons of the Cathedral completed a 12 day Sit-Out raising £168,000 for over 120 local charities and Christian Aid. The Cathedral donates the proceeds of the Sit-Out and absorbs any 5 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 administrative costs of the collection through the donation of time and expertise by the Chapter clergy, Cathedral staff and members of the congregation. ## **Our Fundraising activity** Donations, legacies and charitable grants are critical to the Cathedral’s ability to deliver its daily mission and achieve its vision. Every gift, whatever the size, makes a tangible contribution to the Cathedral’s work. The Board confirms it has due regard to the manner in which the Cathedral carries out its fundraising activity and is committed to a transparent, respectful and ethical approach to fundraising. The Cathedral does not engage with third-party commercial participators or professional fundraisers to carry out its fundraising. The Board receives reporting through the year on the Cathedral’s fundraising activity, including from its related independent fundraising bodies and received no formal complaints during the year regarding the Cathedral’s fundraising. In 2019 the Board reviewed and renewed its policies to ensure compliance with the provisions of the Data Protection Act 2018. As part of its oversight responsibilities the Board seeks to ensure that the Cathedral’s fundraising processes do not allow undue pressure to be placed on visitors or supporters and all approaches protect the public and vulnerable people from any unreasonably intrusive or unreasonably persistent fundraising. ## **Our supporters** A number of trusts, companies and individuals support the Cathedral’s work and mission. The Board would like to thank the following and all those who have made private donations and anonymous gifts, along with those who have chosen to remember the Cathedral in their will. The generous support given by so many people, in both donations and time, makes Belfast Cathedral the place it is today. - The Cathedral’s congregations, wardens and volunteers - The Friends of Belfast Cathedral - The Heritage Lottery Fund - Belfast City Council - Ulster Garden Villages - All Churches Trust - The St Anne’s Trust ## **Our key risks** Careful consideration is given to the major risks to which the Cathedral is exposed. The Board is ultimately responsible for regularly reviewing and assessing the risks faced by the Cathedral in all areas of its work, and for ensuring effective and adequate risk management and internal controls are in place to manage the Cathedral’s risk exposure appropriately. The Board undertakes a formal review of the Cathedral’s strategic risks on an annual basis, reviewing both the completeness of risks identified, their evaluation and responses to key risks. The Board recognises any risk management 6 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 system can only mange risks and not eliminate them and can provide only reasonable, and not absolute, assurance against material misstatement or loss. The Board adopts a balanced and broad approach to risk, recognising it is often appropriate to take risk in the right circumstances in pursuit of the Cathedral’s vision. In doing so the Board recognises uncertainty is ever present in all that it does, particularly in relation to the external environment. The level of risk taken at any one point in time is determined by the Board’s ongoing judgment as to what is appropriate in the circumstances; having taken into account all relevant internal and external information available at that point in time. The Board is committed to working practices and approaches that help ensure consistent risk management across the organisation. The Cathedral’s risk governance process focuses on identifying the principal uncertainties that will influence whether or not the Cathedral achieves its vision or priorities. The strategic level risk assessment performed by the Board therefore defines risk as “an uncertainty that could enhance or impede our ability to achieve our vision and priorities”. The Board recognises that such uncertainties may arise from what the Cathedral has set out to achieve, or result from external events, sometimes outside of the Cathedral’s direct control. The annual review of strategic risks undertaken by the Board helps it confirm the overall adequacy of the Cathedral’s priorities, goals and actions, recognising that good risk management is integral to good strategic management. It enables the Board to make better informed decisions and take timely actions as deemed appropriate. Input to the Cathedral’s strategic level risk assessment draws on a number of external and internal sources, including good practice guidance from the church, charity and risk management sectors. The strategic level risk assessment captures risks from the four dimensions of strategy, reputation, people and finance. Risks are prioritised in terms of likelihood, based on a combination of probability of occurrence and likely speed of any potential impact; and potential impact, based on an aggregate impact assessment of cost or missed opportunity, reputation and people. Identified risks with potential critical or major impact are captured on our risk matrix. The matrix also lists the key activities and governance processes that seek to mitigate these risks or minimise any potential adverse impact should they materialise. Reporting mechanisms are in place so the Board is kept up to date through the year on key risks. This is done by way of the Board’s annual cycle of agenda topics, which incorporates reporting on projects, key priorities, routine governance items and reporting from all Board committees. The overall delivery of the Cathedral’s vision and priorities against expectations is additionally part of the Board’s natural risk monitoring. The key risks facing the Cathedral along with the principal elements of the risk response are as follows: |**Key risk**|**Risk Response**| |---|---| |Growth in visitor numbers to Belfast
Cathedral, on which the Cathedral
depends|•
Engagement and continued dialogue with a
number of external partners, including Heritage
Lottery Fund, Belfast City Council, Cathedral
Quarter Steering Group
•
Monitoring by Board’s Tourism Committee| |Converting Belfast forecast visitor
growth into Cathedral specific visitor
growth and increased visitor spend|•
New dedicated staff positions of Business
Development Manager, Events Manager and
Visitor Services Manager| 7 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 ||•
Close working with external stakeholders
•
Development of Cathedral shop and welcome desk
•
Monitoring by Board’s Tourism Committee| |---|---| |A major fabric issue occurs or is
uncovered that is not in the
Cathedral’s works plan|•
Cathedral building inspections
•
Cathedral properties building condition survey
•
Development
of
fabric
management
and
maintenance plan
•
Prioritisation of available funding
•
Monitoring by Board’s Fabric Committee and
Cathedral Architect| |Inadequate
cashflow
to
deliver
operational
requirements,
future
growth opportunities or project cost
demands|•
Reserves policy in place
•
Ongoing monitoring of cash levels
•
Operational cashflow requirements understood
•
MonitoringbyCathedral’s Finance Committee| |A major security incident impacting
our buildings, people or systems|•
Engagement with local police
•
Regular review and upgrading of security measures
•
IT strategy review
•
Monitoring
by
Board’s
Health
and
Safety
Committee| Controls are in place to ensure the Cathedral’s financial activities are properly managed. These include budgetary control, account reconciliation procedures, authority levels, reserves management and monitoring of the Cathedral’s investment strategy and related risks. Management accounts are reviewed by the Board’s Finance Committee following the end of each quarter. Health and safety policies and procedures that are sensible, pragmatic and proportionate are in place for all our visitors, staff and volunteers, The Board’s Health and Safety Committee monitors the completion of any issues arising from audits or other sources. The Cathedral’s insurance cover is reviewed annually and as circumstances change. Safeguarding policies and procedures are in place for children, young people and vulnerable adults, which are kept under review and meet the Church of Ireland’s Safeguarding Trust policy and practice guidance. The Cathedral has a dedicated Safeguarding Trust Panel. It is the Board’s policy that anyone working with children, young people or vulnerable adults undertakes appropriate safeguarding training. Recruitment procedures seek to follow the Church of Ireland’s practice guidance on safer recruitment, with any potential gaps in good practice identified by the Safeguarding Trust Committee reported to the Board for appropriate follow-up. The Board was advised that the Church of Ireland is promoting the issue of a Vulnerable Adults Policy which sets out the obligations owed by all Church of Ireland bodies to vulnerable adults. The Board’s statutory annual report comprises this Board report on pages 3 to 8, and the narrative on the Board’s structure, governance and management set out on pages 9 to 10. The independent report from the Board’s auditors is found on pages 11 - 14 together with the Board’s financial statements which are set out on pages 15 - 42. 8 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 Gillian McGaughey On behalf of Board 30[th] September 2021 Board of the Cathedral of St. Anne, Belfast Year ended 31 December 2019 ________________________________________________________________________________ ## **Reference and administrative details** **Registered Charity Name** Board of The Cathedral of St. Anne, Belfast **Charity registration number** NIC 104669 **Company registration number** NI000492 **Principal office and registered office** Donegall Street ## **The Trustees** Rt Rev AF Abernethy Rt Rev HC Miller - (resigned 1 December 2019) Archdeacon DA McClay Archdeacon ATW Davison Rev JM Elsdon Mrs GE McGaughey Dr V McKinley Mr R Totten Mr J Watson Dr ME Callender Mr RT Moore Dr RS Cromey Rev Canon JM Niblock Mr RH Kay MBE 9 ST. ANNE’S CATHEDRAL BELFAST ANNUAL REPORT 2019 Mr PS Good Rev Canon MF Taylor Mr NEH Pierpoint **Company Secretary** Mrs GE McGaughey **Auditor** Muir & Addy Chartered Accountants & Statutory Auditor Muir Building 427 Holywood Road Belfast BT4 2LT **Bankers** Bank of Ireland Belfast City Branch 4-6 High Street Belfast BT1 2BA ## **Structure, governance and management** The Board of the Cathedral of St. Anne Belfast is a company limited by guarantee (Company Registration number NI000492) and a registered charity (Charity Number NIC 104669, Tax reference Number XN 46142). The principal activity of the company during the year was the administration of the Cathedral of St. Anne, Belfast. The activities of the charity are governed by its memorandum and articles of association, the Constitution of the Church of Ireland and Diocesan regulations. Its registered office and main business address is Donegall Street, Belfast, BT1 2HB. The charity has one wholly owned subsidiary, Belfast Cathedral Enterprises Limited. Details of this holding can be found in a note to the accounts. The Board of the Cathedral of St. Anne, Belfast is governed by a Board of Directors / Trustees. The directors are elected in accordance with the Constitution of the Church of Ireland and receive external training as part of their induction to ensure they have appropriate competencies to fulfil their role. 10