Portsmouth Cathedral Financial Statements 31.12.14

Transcription

FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2014
THE CATHEDRAL CHURCH OF
ST THOMAS OF CANTERBURY
PORTSMOUTH
PORTSMOUTH CATHEDRAL
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2014
PREFACE
This year’s Annual Report and Audited Accounts has been produced in accordance with the 2006
Accounting and Reporting Regulations for English Anglican Cathedrals, prepared for the Association of
English Cathedrals and specified by the Church Commissioners, under Section 27 of the Cathedrals
Measure 1999. A copy of the Regulations may be read in the reception area of the Cathedral office.
A simplified version of the accounts is again being made available at the Annual Parochial Church Meeting
this year, together with a full report of the activities of the Cathedral and its various groups.
To reduce printing costs, this formal version of the report will be made available on the Cathedral website:
www.portsmouthcathedral.org.uk.
Paper and large print copies can be made available for those who wish to have them; please ask for a copy
from my Personal Assistant in the Cathedral Office, telephone: 023 9289 2963, email:
[email protected].
David Brindley
Dean of Portsmouth
LEGAL AND ADMINISTRATIVE DETAILS
Page
Legal and administrative details
1–2
Mission
3
Structure, governance and management
4–5
Review of activities
6 – 10
Independent auditor’s report
11
Statement of financial activities
12
Balance sheet
13
Accounting policies
14 - 15
Notes to the accounts
16 – 24
Report on investments
25 - 26
Members of the Chapter
The Very Revd David Brindley, Dean of Portsmouth
The Revd Canon Peter Leonard, (from April 2014)
Canon with Responsibility for Discipleship, Growth and Community Outreach
The Revd Canon Nicholas Ralph,
Diocesan Head of Mission and Society & Social Responsibility Adviser, Diocese of Portsmouth
The Revd Canon Dr Anthony Rustell (from November 2014)
Head of Mission, Discipleship and Ministry, Diocese of Portsmouth
The Revd Canon Michael Tristram,
Canon with responsibility for Liturgy and Music
Mrs Fiona Alsop (from December 2014)
Mr Jeremy Barrett
Mrs Caroline Speller (Chairman of the FIC)
Miss Hilary Spurgeon
Other members during 2014
The Revd Canon David Isaac (to September 2014), Mrs Ann Wilson (to September 2014)
In attendance
The Chapter Clerk
The Churchwardens: Emeritus Professor Michael Purvis and Mrs Susan Ward
The Assistant Curate
The Dean’s PA as Secretary
Members of the Finance and Investment Committee
Mrs Caroline Speller (Chairman)
The Very Revd David Brindley (Dean, ex officio)
The Revd Susan Judd
Ms Hilary Meades
The Revd Canon Michael Tristram
Mr Frank Reid and Ms Michelle McGrade (to September 2014)
In attendance
The Chapter Clerk
Members of the Fabric Advisory Committee
Mr Deane Clark (Acting Chairman)
The Revd Canon Jeremy Davies
Mrs Ann Elliot
Dr Karen Fielding (from November 2014)
Mr Robert Hunt
Mrs Jane Jones-Warner
Mr John Pike
Emeritus Professor Michael Purvis
Ms Rolly Thomas (to September 2014)
In attendance
The Dean
The Cathedral Architect
The Cathedral Archaeologist
The Chapter Clerk as Secretary to the FAC
Mrs Finni Robertson-Golden - Observer
The Dean’s PA as Assistant Secretary to the FAC
Page 1
Members of the Cathedral Council
The Dean
Mr James Blott
Mr David Carpenter
Sir John Chadwick
Mrs Shirley Grayson-Smith
The Revd Wendy Kennedy
Councillor Robert New (from June 2014)
Dr David Price
Canon Susan Rodgers
The Revd Canon Dr Anthony Rustell (from November 2014)
Dr Samantha Sartain
Mr Nicholas Speller
Commodore Andrei Spence Royal Navy
Miss Hilary Spurgeon
Others serving in 2014
Major General Martin White (to June 2014) , The Revd Canon David Isaac (to September 2014)
Mrs Samantha Keen (to July 2014), Councillor Philip Smith (to May 2014)
In attendance
The Bishop of Portsmouth
The Chapter Clerk as Clerk to the Council
The Dean’s PA as Secretary
Cathedral Administrator, Chapter Clerk, Clerk to the Cathedral Council
and Secretary to the Fabric Advisory Committee
Mr Peter Sanders
Cathedral Offices
64-68 St Thomas’s Street
Old Portsmouth
Hampshire
PO1 2HA
Cathedral Organist and Master of the Choristers
Dr David Price
Cathedral Architect
Mr Simon L. Ablett
Ablett Architects
Kingfisher House
21-23 Elmfield Road
Bromley
Kent
BR1 1LT
Bankers
Lloyds Bank
2-4 Palmerston Road
Southsea
Hampshire
PO5 3QH
Archaeological Consultant
Mr Richard Whinney
9 Pinegrove Road
Sholing
Southampton
Hampshire
SO9 2PD
Solicitors
Brutton & Co
West End House
288 West Street
Fareham
Hampshire
PO16 0AJ
Page 2
Auditors
Blue Spire South LLP
Cawley Priory
South Pallant
Chichester
West Sussex
PO19 1SY
REPORT OF THE CHAPTER
STATEMENT OF PURPOSE
Encountering God through transformative worship, challenging discipleship, generous hospitality
and prayerful engagement.
Portsmouth Cathedral is a distinctively spiritual and prayerful space, into which everyone is welcome to
come; a Christian community committed to promoting social justice, equality and compassion. In grateful
response to God’s goodness we will act ethically and responsibly in managing our resources and in caring
for the environment.
Transformative Worship
We will be a centre of excellence for liturgy and music. Our worship will be beautiful, relevant, creative
and engaging. It will be transformative in that each act of worship offered and experienced will leave us
changed and better prepared to serve God in the world.
Challenging Discipleship
We will provide a wide range of educational opportunities for children, young people and adults which
will deepen our understanding of the Christian faith and how it relates to the world in which we live. It
will develop our spirituality and challenge us to model our lives after the example of Jesus Christ.
Generous Hospitality
We will be an inclusive Christian community where all are welcomed. We will model our life together
so that we can offer not only an initial welcome but ongoing hospitality to regular members, occasional
visitors, concert goers, exhibition visitors, the local community, the City and the Diocese of Portsmouth.
Prayerful Engagement
Our pattern and rhythm of prayer and worship will equip us to serve our local parish community, the
City of Portsmouth, the Bishop, the Diocese and beyond in relevant practical ways which have a positive
impact on the lives of others and help to build the Kingdom of God.
GOALS AND KEY ACTIONS
•
•
•
•
•
•
•
•
•
Demonstrate God’s love by being an inclusive Christian community where all are welcomed.
Support the Bishop of Portsmouth in his teaching and pastoral role and be a readily available
resource for the Diocese of Portsmouth.
Enhance our exceptional liturgy and music so that the Cathedral is seen as a centre of excellence
for worship, draws people in and engages them.
Develop the service offered through weddings, baptisms and funerals.
Explore new ways of worship in order to engage as many people as possible.
Ensure internal and external communications are effective and everyone can access the
information they require easily.
Raise awareness of the Cathedral and all that it offers.
Establish the Cathedral as a recognised place for exploration and engagement with a wide range of
national and global faith, social, political and environmental issues.
Introduce an annual theme which provides a clear and dynamic focus for the Cathedral
Community.
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•
•
•
•
•
Begin a programme of child, youth and adult education in Christian spirituality and faith.
Develop the compassionate pastoral care offered into an accessible and sustainable model.
Support the work of, and connection with, the Cathedral Innovation Centre.
Protect and enhance all Cathedral buildings and landscape so that we can offer a warm welcome
and they can be used effectively and creatively for worship and hospitality.
Be responsible stewards of all that God has given to us including money, buildings, time, talents
and natural resources.
STRUCTURE AND MANAGEMENT (GOVERNANCE)
The authorities listed in this section each have a specific role in the governance of the Cathedral.
The Chapter of the Cathedral
The Cathedrals Measure 1999 requires that it shall be the duty of the Chapter to direct and oversee the
administration of the affairs of the Cathedral and in particular, to:
Order the worship and promote the mission of the Cathedral;
Formulate, after consultation with the Bishop, proposals in connection with the general direction and
mission of the Cathedral and submit them to the Council for its advice;
Prepare an annual budget for the Cathedral;
Submit to the Council the annual report and audited accounts prepared by the Chapter and such other
reports as may be requested by the Council on any matter concerning the Cathedral;
Submit to the College of Canons the annual report and audited accounts prepared as aforesaid;
Keep under review the Constitution and Statutes of the Cathedral and submit any proposals for their
revision to the Council;
Manage all property vested in the Cathedral and the income accruing from it and, in particular, ensure
that necessary repairs and maintenance in respect of the Cathedral and its contents and other buildings
and monuments are carried out, and
Perform such other functions as may be prescribed.
The Chapter is also responsible under the requirements laid down by the Church Commissioners under
the powers given them by Section 27 of the Cathedrals Measure 1999 for:
Preparing and publishing an annual report and audited accounts which give a true and fair view of the
financial activities for each financial year and of the assets, liabilities and funds at the end of each financial
year of Portsmouth Cathedral and its related entities;
Stating that they have complied in all material respects with the guidelines on the subject prepared by the
Association of English Cathedrals or describing which recommendations have not been complied with
and giving reasons for the non-compliance;
Selecting suitable accounting policies and then applying them consistently;
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Making judgments and estimates that are reasonable and prudent;
Keeping proper accounting records from which the financial position of the Cathedral can be ascertained
with reasonable accuracy at any time; and safeguarding the assets of the Cathedral and taking reasonable
steps for the prevention and detection of fraud and other irregularities.
A list of Chapter members is shown on page 1.
Finance and Investment Committee
The Constitution requires the setting up of a Finance Committee, known as the Finance and Investment
Committee (FIC), with the function of advising the Chapter in connection with its responsibilities in the
field of financial and investment management. Chapter receives and acts with the guidance and the advice
given to it by FIC. The Chapter appoints the members of this Chapter sub-committee. During the year
Mr Frank Reid retired and Ms Michelle McGrade resigned.
The Members of the Committee are listed on page 1.
Fabric Advisory Committee
Under the Care of Cathedrals Measure 1990, the Fabric Advisory Committee (FAC) is responsible to the
Cathedrals Fabric Commission for England and considers applications from the Chapter in regard to
proposed development of and changes to the Cathedral's fabric.
There are eight voting members of the Fabric Advisory Committee, four appointed by the Cathedrals
Fabric Commission after consultation with the Chapter, and four by the Chapter after consultation with
the Commission. The members appoint a Chairman from among their own number. In 2014 Ms Rolly
Thomas resigned from the committee and her place as a Chapter nominee was taken by Dr Karen
Fielder of the University of Portsmouth. The Dean and Chapter Clerk attend meetings on behalf of the
Chapter, and other Chapter members are free to attend; no members of the Chapter have a vote. The
Cathedral Archaeologist, and the Cathedral Architect have, under Section 4 of the Care of Cathedrals
Measure 1990, a duty to attend meetings, although neither has a vote.
Members of the Committee are listed on page 1.
Cathedral Council
It is the duty of Cathedral Council to support the work of the Cathedral Church; spiritual, pastoral,
evangelistic, social, and ecumenical, receiving and considering the annual budget and annual accounts,
reviewing and advising Chapter accordingly.
Reserves Policy
Reserves are needed both to maintain the level of the Cathedral’s current activities and to enable the
completion of long-term projects.
Maintaining unrestricted reserves protects the Cathedral against a sudden deterioration in its financial
results (e.g. a significant drop in income or a major repair project). It also provides a buffer in the event
of long-term planning or restructuring. Chapter’s aim is to retain a short-term reserve of 6 months of
ordinary activity to protect the Cathedral’s operations. Where specific future funding needs are
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identified, Chapter has the discretion to set aside free funds for designated purposes, those funds being
declared as Designated Funds.
Investment Policy
Chapter aims to keep a balanced portfolio of investments that adopts a balanced approach to risk. The
attainment of long-term objectives requires the acceptance of a level of investment risk, which manifests
itself primarily in the fluctuation of the capital value.
Chapter currently has three appointed investment brokers, Sarasin Partners LLP (appointed in 2013),
Rathbones (on receipt of a legacy portfolio) and CCLA as brokers to the Cathedral’s original portfolio.
Funds are required to be invested, as far as is possible, in accordance with the Statement of Ethical
Investment Policy issued by the Church of England Advisory Group. Responsibility for the management
of this policy rests with the Chapter, but authority to conduct stock transactions on a day-today basis
under this policy is delegated to the cathedral’s investment managers. Chapter plans to rationalise the
number of brokers and will be undertaking a review of investment performance in 2015.
Investment return is shown in note 5(i) to the annual report and the investment report is on page 25.
Portsmouth Cathedral Development Trust (PCDT)
The Trust was formed originally in the 1980s and exists principally to receive funds from appeals made on
the Cathedral’s behalf and to make grants to the Cathedral in accordance with the terms of the Trust
Deed and the relevant appeal.
The Trust presently holds funds arising from such appeals and releases them to the Cathedral under the
terms of the Trust Deed.
As a separate Charity with its own body of trustees, PCDT prepares its own annual accounts which are
submitted to the Charity Commissioners. PCDT is chaired by Major General Martin White.
The Role of the Cathedral in the Diocese
Every day throughout the year prayers are offered in the Cathedral for the parishes in the Diocese, their
clergy, office holders and parishioners. The Cathedral provides the venue (and the organisational,
administrative and musical support) for a number of Diocesan services, such as ordinations and
confirmations, and other major events. The Cathedral also hosts civic occasions locally, nationally and
internationally.
Chapter members and Cathedral Staff actively participate in the Mission and Ministry of the Diocese,
serving on the Bishop’s Staff and many Diocesan committees and working groups. Time spent by
Chapter members on Diocesan tasks (which can be significant) in the regular and normal course of their
work, whether for formal joint events or work which they undertake voluntarily, is not charged to the
Diocese. It is felt that to do so would be inconsistent with common mission and ministry. Cathedral
clergy and lay ministers regularly take services in churches throughout the diocese to cover sickness,
leave and interregnum and are happy to do so where Cathedral duties permit.
REVIEW OF ACTIVITIES
There were a number of changes to the membership of Chapter in 2014. Canon Peter Leonard was
appointed as Residentiary Canon with the newly created role with responsibility for Discipleship, Growth
and Community Outreach. Canon Michael Tristram, formerly the Canon Pastor took over responsibility
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for Music and Liturgy. Canon David Isaac retired in September after 22 years as a Residentiary Canon
and Canon Anthony Rustell was appointed as Residentiary Canon and Head of Mission, Discipleship and
Ministry for the Diocese of Portsmouth. Mrs Ann Wilson (Lay Member) on completion of her term of
office retired in September and Mrs Fiona Alsop (Lay Member) took up office from December.
The Cathedral staff also underwent a number of changes in 2014. Following the review of the
Cathedral’s education provision by The Revd Alice Wood, interview for a permanent Education Officer
took place in November and Mrs Sarah Page was appointed from January 2015. Following the retirement
in April of Mr David Lee as verger, Miss Jessica-Louise Hallion was appointed as Head Verger from May.
Mr Adam Bullivant, Assistant Verger, left in November to volunteer at the Taizé Community in France
and Miss Malina Wyzykowska was appointed Assistant Verger from November. A rearrangement of
hours for the Administrative Assistant led to the appointment of Mr Jason Stanbridge-Howard from
September. There was the usual departure of ‘Gap Year’ Choral Scholars in July and the arrival of new
Choral Scholars in September. Mrs Kitty Price was licensed as Reader in September and joined the
Ministry Team. Mr Frank Reid stood down as Churchwarden and Mrs Sue Ward was elected to serve
alongside Emeritus Professor Michael Purvis, who was re-elected, at the APCM.
Various staff attended training days and conferences throughout the year and our Finance Officer
continued with her AAT accounting qualification training. Our ‘Development Plan’ discussions identified
the need to undertake an Administration Review and Stephen Dawson, the Deputy Diocesan Secretary
for the Diocese of Salisbury, assisted with this and work on it is still ongoing.
Chapter having decided to review its Vision and Strategic Framework (2012-2017) with a view to
establishing a ‘Development Plan’ undertook a staff ‘Away Day’ in February, a Chapter ‘Residential’ in May
and a series of discussions and consultations with the Cathedral’s various committees and congregation.
The Revd Tim Daykin, radio broadcaster, and Mr James Blott and Mr David Carpenter from the
Cathedral Council assisted with facilitating discussion and drawing up a framework for layout and
publication of the ‘Development Plan’ which was launched on 29 September to considerable appreciation.
It’s ‘Statement of Purpose’ and ‘Goals and Key Actions’ are set out on pages 3 – 4.
A major focus of the year has been the maintenance and repair of the Cathedral’s various properties long
overdue and now possible through the William Groves and other legacies received. A surveyor was
appointed in January and improvement work undertaken on: the Deanery, 51 High Street, 29 Penny
Street and Cathedral House Flat 2. The electrics of these properties were also tested and appropriate
certification issued. Cathedral House had a number of windows replaced and it is planned to repair and
replace more in 2015.
Considerable time and money has also been spent on the Cathedral with repair work to the Nave and
Cloister windows, general maintenance of the roofs and essential immediate repair works to the Tower
Cupola in preparation for major repair work in 2015. Chapter is very pleased to have been awarded
grant aid from the First World War Centenary Cathedral Repair Fund (FWWCCRF) to undertake
essential structural and water damage repair work to the Tower and South Transept planned for
completion in 2015. It is planned as part of the work that a number of specialist tours will be facilitated
by our architect, Simon Ablett, to view the Tower.
Work has continued throughout the year on the Cathedral’s ‘Landscape Project’ with our landscape
architect, Max Askew, supported by the archaeologist Gerry Wait facilitating a number of discussions in
the Cathedral’s committees and consultation events for the congregation and public. These resulted in
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an ‘indicative design’ being drawn up and further discussions with the Cathedral’s Fabric Commission for
England (CFCE), Portsmouth City Council, Heritage Lottery Fund (HLF) and others has continued.
Conservation Plus consultancy have been appointed to assist with making an HLF bid and it is planned
this will be done in 2015 with a Stage One bid for c£100,000 to undertake: detailed design, planning
applications and engagement work with the public followed by a Stage Two bid for c£1,500,000. It is
planned, subject to HLF funding, to offer a range of opportunities and activities to engage the public with
the heritage and future of the Cathedral including a number of archaeological ‘digs’ which it is understood
will be immensely rewarding and worthwhile.
The life of the Cathedral remains vibrant and varied and along with the traditional Eucharistic and
Evensong services, using the wide range of musical resources including a jazz mass, the Cathedral has
continued with its monthly Taizé style worship and developed and expanded its participation in ‘Messy
Cathedral’ which has attracted new families to the Cathedral. A new venture for the year has been
engagement with the acclaimed ‘Pilgrim’ course which has been followed by ‘Soul Spark’ in 2015.
Each year the Cathedral is the venue for a variety of concerts and exhibitions which this year included
sculptures by Philip Jackson and an ‘open workshop’ enabling the public to experience gilding our herald
‘Fama’, now returned to its place above the pulpit, and which proved very popular. One of the elements
to come out of the ‘Development Plan’ was to establish an annual theme for the Cathedral and for 201415 this is ‘political awareness’. A number of challenging lectures have already been well received and a
series of Lent lectures are planned for 2015. Part of Cathedral House is leased to the Cathedral
Innovation Centre (CIC) to promote, develop and assist ‘start up’ and fledgling businesses by providing
business premises and professional business mentoring continues to be a success. Currently it is
supporting over 30 ventures and is gaining national recognition with new projects started or planned in
other cities and countries. The reports of activities of the various groups in the booklet issued at the
APCM show a high level of commitment and we are grateful to staff and volunteers for their hard work
and support.
Finance
The management of the ‘Operational’ budget went essentially according to plan with income slightly
greater than expenditure and both a little over 100% of budget forecast. The William Groves legacy, final
payment of this being received in December, along with other legacies from: Roy Scott, Richard
Eckersley, Danielle Taylor, Angela Barrett and Muriel Van Staveren, for which Chapter is very grateful,
helped not only with operational costs but most specifically with ‘Development Plan’ initiatives.
The receipt of the William Groves legacy in 2013 marked a step change in the Cathedral’s finances. We
now have significant reserves, enabling us to put the Cathedral on a sound footing for the future, and
allowing the base finance for projects developing in line with the ‘Development Plan’ launched in 2014.
As part of the William Groves legacy the Cathedral received ownership of a small shop in Petersfield,
which following a review of its future with its tenants, who ceased to trade, was sold in October 2014 for
£146,246.80 net of sale expenses and the proceeds have been invested.
The main indicator of performance on the Statement of Financial Activities (page 12) is the General Fund
result before “other recognised gains”. The General Fund is an unrestricted fund into which the income
from our ordinary activities goes and from which we pay for our general running costs.
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General reserves now stand at £3,184,733 (2013 £2,997,778) and exist to enable us to continue the
Cathedral’s mission in the event of an emergency or a need to make a major investment.
The Finance and Investment Committee (FIC) continues to place focus on sustainability of income and
cost control and aims to ensure that expenditure has a measurable benefit to the mission of the
Cathedral and aligns with the ‘Development Plan’. The focus of the FIC has developed this year to
include consideration of investment performance as part of its regular business. Following the William
Groves bequest and the appointment of Sarasin Partners LLP in 2013 as brokers for the bulk of the
portfolio the committee gave them the investment objectives: to achieve long-term capital and income
growth and to provide a reasonable, regular and foreseeable income to support the Cathedral’s current
financial needs. This should be achieved by investing in a diversified portfolio of Investment Funds. The
selection of the Funds will be made to reflect the benchmarks established for asset classes. A medium to
low risk profile is taken on equities and performance is measured against a composite benchmark index.
The committee has made regular reviews of their performance and also of CCLA’s as the incumbent
brokers for the majority of the Cathedral’s other investments including managed property funds.
Chapter owns property to house clergy and staff and to use for offices and some is held for investment
purposes and is rented out on a commercial basis where possible to generate funds for the day-to-day
operation of the ministry of the Cathedral. At 31 December 2014 total investments excluding direct
property holdings totalled £2,338,213 (2013: £2,207,606). More detail on the investments can be seen in
the Report and Accounts and Chapter will be looking at rationalising its investment management in 2015.
The members of FIC would like to thank the congregation for their support and generosity and are
always grateful for their views and comments.
The Cathedral Shop continues to provide a significant contribution to income and has benefited from the
Electronic Point of Sale (EPOS) system installed in 2013, evidenced through improved stock recording
and sales data, and had another successful and profitable year in 2014 and generated a net income of
£6,757. We would like to thank the Shop Manager, Christine Richardson, and her team of volunteers, for
their ongoing service and dedication.
In summary, 2014 was the first full year of activity backed by a more foreseeable income stream, allowing
new activity to take place in line with the ‘Development Plan’ but none the less retaining focus on core
costs.
Risk management
The Chapter delegated to its Finance and Investment Committee the development of a Risk Management
Register which has been accepted and ratified by Chapter. The principal areas of the Cathedral’s
operations were examined and the major risks faced in each of these areas considered. In the opinion of
the Finance and Investment Committee and of the Chapter the Cathedral has put in place resources and
review systems which would allow these risks to be mitigated to an acceptable level in its day-to-day
operations.
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The Chapter’s responsibilities for the financial statements
The Chapter is responsible under requirements laid down by the Church Commissioners under the
powers given them by Section 27 of the Cathedrals Measure 1999 for:
• preparing and publishing an annual report and audited accounts which give a true and fair view of
the financial activities for each financial year and of the assets, liabilities and funds at the end of
each financial year of the Cathedral;
• stating that they have complied in all material respects with the regulations on the subject
prepared by the CAFA or describing which recommendations have not been complied with and
giving reasons for the non-compliance.
• selecting suitable accounting policies and then applying them consistently;
• making judgements and estimates that are reasonable and prudent;
• keeping proper accounting records from which the financial position of the Cathedral can be
ascertained with reasonable accuracy at any time, and safeguarding the assets of the Cathedral and
taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Chapter is aware:
• there is no relevant audit information of which the Cathedral's auditors are unaware; and
• the Chapter has taken all steps that they ought to have taken to make themselves aware of any
relevant audit information and to establish that the auditors are aware of that information.
The Chapter is responsible for the maintenance and integrity of the Cathedral and financial information
included on the Cathedral's website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the Chapter at its meeting on 10 March 2015 and signed on its behalf by:
David Charles Brindley
Dean of Portsmouth
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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE CHAPTER OF PORTSMOUTH
CATHEDRAL
We have audited the financial statements of Portsmouth Cathedral for the year ended 31 December 2014
which comprise the principal accounting policies, the consolidated statement of financial activities, the
consolidated balance sheet, the Cathedral balance sheet, the consolidated cash flow statement and the
related notes. The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Chapter, as a body, in accordance with the regulations made under Section
27 of the Cathedrals Measure 1999. Our audit work has been undertaken so that we might state to the
Chapter those matters we are required to state to them in an auditor's report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the Cathedral and the Chapter as a body, for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of the Chapter and auditors
As explained more fully in the Statement of the Chapter's Responsibilities, the Chapter is responsible for
the preparation of the financial statements which give a true and fair view. Our responsibility is to audit
and express an opinion on the financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices
Board's (APB's) Ethical Standards for Auditors.
Scope of audit opinion
A description of the scope of an audit of financial statements is provided on the APB's website at
www.frc.org.uk/apb/scope/private.cfm.
Opinion
In our opinion:
• the financial statements give a true and fair view, in accordance with United Kingdom Generally
Accepted Accounting Practice, of the state of affairs of the Cathedral as at 31 December 2014, and
of its incoming resources and application of resources for the year then ended in accordance with
United Kingdom Generally Accepted Accounting Practice; and
•
the financial statements have been properly prepared in accordance with the regulations specified
by the Church Commissioners under the powers given to them by Section 27 of the Cathedrals
Measure 1999.
Blue Spire South LLP
Statutory Auditors
Chichester
10 March 2015
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STATEMENT OF FINANCIAL ACTIVITIES
Note
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
INCOMING RESOURCES
Voluntary income
1
276,150
6,874
Grants receivable
1
183,475
167,434
Charges and fees arising in the course of mission
1
41,308
-
Income from activities for generating funds
1
78,051
Income from property and investments
1
130,506
Other incoming resources
1
TOTAL INCOMING RESOURCES
Cost of generating funds
709,490
2
58,301
24,745
307,769
3,186,615
-
350,909
284,718
-
41,308
34,636
-
-
78,051
80,282
4,422
-
134,928
93,005
178,730
-
-
-
2,158
24,745
912,965
3,681,414
-
58,301
53,874
NET INCOMING RESOURCES AVAILABLE
FOR MISSIONS
651,189
178,730
24,745
854,664
3,627,540
EXPENDITURE ON MISSION
Ministry
4
220,194
121,888
-
342,082
296,521
Cathedral and precincts upkeep
4
215,121
149,521
-
364,642
622,669
Education and outreach
4
124,283
11,981
-
136,264
125,840
Other expenditure on mission
4
-
-
11,905
10,273
-
854,893
1,055,303
TOTAL EXPENDITURE ON MISSION
11,905
571,503
283,390
GOVERNANCE COSTS
Administrative services
4,206
112,861
134,763
Total expenditure
4
108,655
680,158
283,390
-
4,206
967,754
1,243,940
NET INCOMING/(OUTGOING) RESOURCES
(28,969)
(104,660)
20,539
(113,090)
2,437,474
OTHER RECOGNISED GAINS/(LOSSES)
Investments
Property
5(i)
6
34,562
5,888
54,583
95,033
107,629
-
-
55,872
55,872
-
181,362
31,391
(212,753)
-
-
186,955
(67,381)
(81,759)
37,815
2,545,103
TRANSFERS
Gross transfers between funds
11
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
11
2,997,778
121,440
2,808,994
5,928,212
3,383,109
Total funds carried forward
11
3,184,733
54,059
2,727,235
5,966,027
5,928,212
Page 12
BALANCE SHEET AS AT 31 DECEMBER 2014
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
5
386,867
100,452
Property
6
2,610,000
Cathedral inventory and equipment
7
Note
FIXED ASSETS
Investment assets
Investments
1,850,894
2,338,213
2,207,606
250,000
2,860,000
2,950,000
Non investment assets
Total fixed assets
-
48,011
-
3,044,878
100,452
2,100,894
48,011
52,139
5,246,224
5,209,745
8,400
8,400
CURRENT ASSETS
Stocks
Debtors
8,400
8
-
-
61,095
-
37,098
98,193
164,605
Cash at hand and in bank
113,686
(35,537)
589,243
667,392
590,717
Total current assets
183,181
(35,537)
626,341
773,985
763,722
43,326
10,856
54,182
45,255
139,855
(46,393)
626,341
719,803
718,467
2,727,235
5,966,027
5,928,212
LIABILITIES FALLING DUE WITHIN ONE YEAR
Creditors: amounts falling due within one year
9
Net current assets/(liabilities)
Total assets less current liabilities
3,184,733
54,059
-
LIABILITIES FALLING DUE WITHIN ONE YEAR
Creditors: amounts falling due after one year
-
Net assets/(liabilities)
-
3,184,733
-
-
-
54,059
2,727,235
5,966,027
5,928,212
-
-
2,727,235
2,727,235
2,808,994
-
54,059
-
54,059
121,440
3,184,733
-
-
3,184,733
2,997,778
3,184,733
54,059
5,966,027
5,928,212
THE FUNDS OF THE CHARITY
Endowment funds
Restricted funds
11
Unrestricted funds
11
Total cathedral funds
2,727,235
The notes on pages 16 to 24 form part of the annual report.
Approved by The Chapter on 10 March 2015 and signed on their behalf.
David Brindley
Caroline Speller
Dean
Chairman of Finance Committee
Page 13
ACCOUNTING POLICIES
Basis of preparation
The accounts have been prepared in accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals issued in November 2006
by the Cathedral Administration and Finance Association. They have been prepared under the historical cost convention except that property and
investments are included at a valuation.
The principal accounting policies have remained unchanged from the previous year and are set out below.
Funds
Unrestricted funds are funds where no restrictions are placed on the use by the Cathedral as regards either the capital or the income. Designated funds are
unrestricted funds set aside by Chapter for specific purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor and are set out in notes to the financial
statements. The reserve arising on the revaluation of properties within the Cathedral Close is deemed to be a restricted fund.
The Cathedral's expendable endowment funds are set out in notes to the financial statements. They arise from a legacy received. Income from the funds is
unrestricted.
Income
Dividend income and bank interest are included at the time of receipt at amounts which include recoverable income tax where appropriate. Voluntary
income is received by way of general donations, special donations, church collections, Gift Aid donations and legacies. Such income is included at the time of
receipt at amounts which include recoverable income tax on Gift Aid donations. Other income is included at the time of receipt or, in the case of grants,
when the necessary conditions have been met.
Resources expended
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Chapter to the expenditure. All expenditure is accounted for
on an accruals basis and has been classified under headings that aggregate all costs related to the category.
“Costs of generating funds” comprise costs of attracting voluntary income, costs of trading for fund raising purposes, and costs of managing the investment
properties.
“Expenditure on mission” comprises costs of the Cathedral’s ministry, upkeep of the Cathedral fabric and precincts, and education and outreach.
“Governance” comprises costs of meeting the constitutional and statutory requirements of the Cathedral and its subsidiary companies.
“Support costs” comprise salaries and office costs and have been allocated to the activity cost categories based on an estimate of the time spent.
Fixed assets
In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral as
it is an inalienable and historic building for which no reliable cost information or conventional valuation basis is available.
The cost of the Cathedral church building is not included in the balance sheet.
Property assets are included at market value.
Items in the Cathedral inventory purchased prior to 1999 are not included in the balance sheet as their value is not readily ascertainable.
Page 14
ACCOUNTING POLICIES
Depreciation
Depreciation is calculated to write off the cost or valuation less estimated residual value of all tangible fixed assets (other than buildings) by equal annual
instalments over their expected useful economic lives. The rates generally applicable are:
Office equipment
25%
Fixtures and fittings
20%
Cathedral inventory
Other equipment
2%
33⅓%
Buildings are not depreciated (on the basis that such depreciation would be immaterial) but are subject to an annual impairment review.
Investments
Investments are included in the balance sheet at their market values.
Stocks
Retail stocks in the bookshop are stated at the lower of cost and net realisable value.
In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral
inventory which comprises items of architectural, archaeological, artistic or historical interest.
Pension schemes
The pension costs charged against the surplus represent the amount of the contributions payable to pension schemes in respect of the accounting period.
Page 15
NOTES TO THE ACCOUNTS
1. Voluntary income
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
Voluntary income
Congregational collections and giving
102,474
3,049
-
105,523
105,327
Donations
42,921
-
-
42,921
41,131
Income from appeals and fundraising
25,368
3,825
-
29,193
60,515
Tax recoverable under gift aid
20,341
-
-
20,341
20,611
Miscellaneous income
Legacies
Portsmouth Cathedral Development Trust
-
-
191,104
-
6,874
-
197,978
-
227,584
85,046
-
24,745
109,791
2,959,031
-
-
-
276,150
6,874
24,745
307,769
3,186,615
168,175
107,021
-
275,196
266,668
15,300
60,413
-
75,713
18,050
183,475
167,434
-
350,909
284,718
-
-
-
Grants receivable
Church commissioners
Other revenue and capital grants
Charges and fees arising in the course of mission
Facility and fees
41,308
-
-
41,308
34,636
41,308
-
-
41,308
34,636
Cathedral bookshop sales
54,726
-
-
54,726
56,373
Use of Cathedral buildings
20,669
-
-
20,669
21,076
2,656
-
-
2,656
2,833
78,051
-
-
78,051
80,282
Income from activities for generating funds
Coffee machine income
Income from property and investments
Residential property
50,101
-
-
50,101
42,531
Investments
80,405
4,422
-
84,827
50,474
130,506
4,422
-
134,928
93,005
-
-
-
-
2,158
-
-
-
-
2,158
Other income
Insurance recoveries
709,490
Page 16
178,730
24,745
912,965
3,681,414
2. Cost of generating funds
Unrestricted
Cathedral bookshop costs
Coffee machine costs
Costs of appeals and fundraising
Restricted
Endowment
2014
2013
Total
Total
46,026
-
-
46,026
41,782
1,943
-
-
1,943
1,856
10,332
-
-
10,332
10,236
58,301
-
-
58,301
53,874
3. Employees
2014
Gross wages
2013
Total
Total
Funds
Funds
£
£
315,349
277,013
Employer's national insurance costs
21,805
19,856
Pension costs
29,813
32,205
366,967
329,074
The average number of employees analysed by function was:
2014
2013
Clergy with cathedral duties only
3
3
Clergy with significant diocesan duties
2
2
Laity - full time
5
4
Laity part-time
10
10
20
19
The remuneration of the members of the Chapter during the year was as follows:
2014
The Very Revd David Brindley (Dean)
The Revd Canon Nicholas Jepson-Biddle (to March 2013)
2013
Stipends/
Pension
Stipends/
Pension
salary
contributions
salary
contributions
£
£
£
£
34,340
10,616
33,665
10,393
-
-
6,633
2,041
The Revd Canon Peter Leonard (from April 2014)
18,588
-
-
-
The Revd Canon Michael Tristram
27,973
8,492
27,425
8,315
80,901
19,108
67,723
20,749
Employer's National Insurance contributions for the year in relation to Stipends were £7,014 (2013: £5,935)
The total of expenses reimbursed to members of the Chapter during the year was £5,746 (2013: £5,278)
There were no other transactions with related parties that require disclosure in the financial statements.
Page 17
4. Expenditure on mission
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
Ministry
Clergy stipends and working costs
-
115,164
99,582
Clergy housing costs
13,463
-
-
13,463
12,179
Clergy support costs
46,871
-
-
46,871
48,065
151,717
14,867
-
166,584
136,695
220,194
121,888
-
342,082
296,521
-
122,285
-
122,285
403,532
Maintenance and interior upkeep
44,664
27,236
-
71,900
96,836
Cathedral insurance
20,139
-
-
20,139
16,385
Precincts, security and gardens upkeep
40,632
-
-
40,632
30,187
109,686
-
-
109,686
75,729
622,669
Services, music and congregational costs
8,143
107,021
Cathedral and precincts upkeep
Major repair and restoration
Support costs
215,121
149,521
-
364,642
Education and outreach
Grants and scholarships
3,049
9,164
-
12,213
8,026
Educational activities
13,059
-
-
13,059
10,865
Diocese
98,760
-
-
98,760
95,632
9,415
2,817
-
12,232
11,317
124,283
11,981
-
136,264
125,840
7,750
Charitable and other giving
Other expenditure on mission
Charitable donations in furtherance of mission
6,500
-
-
6,500
Other expenditure
5,405
-
-
5,405
2,523
11,905
-
-
11,905
10,273
-
854,893
1,055,303
113,572
Total expenditure on mission
571,503
283,390
Administrative expenses
Administration and finance
Auditors remuneration (audit services (inclusive of VAT))
Information technology
Personnel and training
82,159
-
4,206
86,365
6,000
-
-
6,000
6,000
15,983
-
-
15,983
12,852
4,513
-
-
108,655
-
4,206
Page 18
4,513
2,339
112,861
134,763
5. Investments
Carrying (market) value brought forward
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
336,307
110,564
Additions at cost
Transfer for expenses born by unrestricted funds
Carrying (market) value carried forward
1,675,852
425,645
618,152
618,152
1,191,687
-
-
16,000
(16,000)
-
-
-
-
(68,570)
(68,572)
(46,118)
34,562
5,888
54,792
95,242
104,638
386,867
100,452
1,833,355
2,320,674
1,675,852
17,539
17,539
531,754
1,850,894
2,338,213
2,207,606
Disposals at carrying value
Gain/(Loss) on revaluation
1,228,981
(2)
Cash deposits held at 31 December 2014
-
-
386,867
100,452
5(i) Total return on investments
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
54,792
95,242
104,638
Gain/Loss on investments
Unrealised (from above)
34,562
Realised on disposal of fixed asset investments
5,888
-
-
34,562
5,888
54,583
(4,206)
(4,206)
(1,888)
Investment income 1
21,238
4,422
58,991
84,651
42,321
Total return on investments
55,800
10,310
109,368
175,478
148,062
Investment management fees
1
(209)
(209)
95,033
2,991
107,629
All investment income is recognised within unrestricted funds
5(ii) Investment assets by investment class
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
UK equities
82,211
21,347
590,569
694,127
537,260
Overseas equities
59,546
15,461
628,273
703,280
462,416
UK fixed interest
1,958
508
372,321
374,787
187,758
Overseas fixed interest
3,832
995
9,658
14,485
90,484
224,663
58,335
85,582
368,580
281,757
10,717
2,783
113,222
126,722
71,350
3,939
1,023
51,269
56,231
576,581
386,866
100,452
1,850,894
2,338,212
2,207,606
Property
Alternative assets
Liquid assets and cash
Page 19
6. Property
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
Carrying (market) value brought forward
2,610,000
-
340,000
2,950,000
Additions - from legacy
-
-
-
-
Transfer of building following review of legacy
-
-
-
-
Disposals at carrying value
-
-
(90,000)
(90,000)
Gain/(Loss) on revaluation
-
-
-
-
Carrying (market) value carried forward
2,610,000
-
250,000
2,860,000
2,950,000
2,950,000
Gain/Loss on property
Unrealised (from above)
-
-
-
-
-
Realised on disposal
-
-
55,872
55,872
-
-
-
55,872
55,872
-
The Cathedral's property was externally revalued in February 2011 by D M Nesbit & Company, Chartered Surveyors and by Daniells Harrison, Chartered
Surveyors, on an open market basis. Properties within endowment funds are included at probate value.
7. Cathedral inventory and office equipment - Unrestricted
Cathedral
Fixtures
Office
Other
inventory
& fittings
equipment
equipment
Total
£
£
£
£
£
Cost
At 1 January 2014
49,977
81,073
49,884
3,240
Additions
-
-
-
-
Disposals
-
-
-
-
49,977
81,073
49,884
3,240
184,174
Accumulated at 1 January 2014
8,731
81,073
39,531
2,700
132,035
Charge for the year
1,000
-
2,588
540
4,128
At 31 December 2014
184,174
-
Depreciation
On disposals
-
-
-
-
9,731
81,073
42,119
3,240
136,163
Net book value at 31 December 2014
40,246
-
7,765
-
48,011
Net book value at 31 December 2013
41,246
-
10,353
540
52,139
At 31 December 2014
Page 20
-
8. Debtors
2014
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
37,098
37,098
41,641
Other debtors
Accrued income
-
-
61,095
-
-
61,095
122,964
61,095
-
37,098
98,193
164,605
9. Creditors: amounts falling due within one year
2014
Trade creditors
2013
Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
30,104
10,856
-
40,960
25,445
5,011
-
-
5,011
4,404
-
-
-
-
8,211
-
-
8,211
-
-
-
-
5,000
43,326
10,856
-
54,182
45,255
Social security and other taxes
Portsmouth Cathedral Enterprises Limited
Other creditors
Loans from congregation
2
10,404
10. Analysis of net assets between funds
2014
Investment assets
Investment assets - shares in PCE
Property - Cathedral activities
2013
Unrestricted
Unrestricted
Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
386,867
-
100,452
-
48,011
8,400
2,207,604
2
2,100,000
2,100,000
-
-
48,011
52,139
-
-
8,400
8,400
61,095
-
37,098
98,193
164,605
Cash at bank and in hand
113,686
(35,537)
589,243
667,392
590,717
Creditors: amounts due within one year
(43,326)
(10,856)
(54,182)
(45,255)
Debtors
-
-
-
Stocks
2,100,000
3,184,733
Page 21
54,059
250,000
2,338,213
850,000
Cathedral inventory and equipment
-
-
760,000
Property - Cathedral clergy and staff housing
510,000
1,850,894
2,727,235
5,966,027
5,928,212
11. Analysis of net movement in funds
Total funds
Total
Total
Change in
Transfers
Total funds
brought
incoming
resources
market
between
carried
forward
resources
expended
value
funds
forward
£
£
£
£
£
£
Endowment funds
William Groves Expendable Endowment
2,808,994
24,745
(4,206)
110,455
(212,753)
2,727,235
2,808,994
24,745
(4,206)
110,455
(212,753)
2,727,235
107,020
(107,020)
Restricted funds
Church Commissioners Stipend Grant
QARNNS - Chapel of healing and
-
-
-
3,267
-
540
-
-
-
3,807
110,564
4,422
-
5,888
(16,000)
reconciliation
Ritchie bequest
Cathedral Sing
104,874
147
2,769
(9,164)
-
6,248
-
Sunyani
2,723
2,509
(2,818)
-
-
2,414
Monks project
1,000
-
-
-
-
1,000
Let the Building Speak
2,097
2,000
(15)
-
-
4,082
Memorial garden
494
204
(92)
-
-
606
Other restricted funds
952
-
-
-
-
Landscape Project
-
-
(27,145)
-
-
(27,145)
Organ repairs
-
-
(12,814)
-
12,814
-
East End Redecoration
-
3,431
(14,867)
-
11,436
-
Cathedral Tower
-
11,233
(15,419)
-
4,186
-
Cathedral Cloisters Windows
-
-
(37,531)
-
-
(37,531)
Cathedral House Gate Repairs Flower
-
43,602
(56,505)
-
12,903
-
Guild
-
1,000
-
-
-
1,000
Total restricted funds
196
121,440
178,730
(283,390)
-
(196)
952
-
5,888
31,391
54,059
350,000
Unrestricted funds
Development appeal fund
Property sinking fund
Revaluation reserve
Parish choir
350,000
-
-
-
-
61,856
-
(42,624)
-
-
19,232
1,517,959
-
-
-
-
1,517,959
100
-
-
-
-
(100)
(100)
-
Total designated funds
1,929,915
(42,624)
-
General fund
1,067,863
709,490
(695,835)
34,562
181,462
1,297,542
Total unrestricted funds
2,997,778
709,490
(738,459)
34,562
181,362
3,184,733
Total funds
5,928,212
912,965
(1,026,055)
150,905
-
The deficits in the note above on the External Redevelopment and Cathedral Tower will be made good by funding in subsequent financial years.
Page 22
1,887,191
5,966,027
12. Explanation of transfers
Unrestricted
Restricted
Endowment
Funds
Funds
Funds
£
£
£
4,000
Allocation of overhead costs to the music fund
Transfer from endowment to cover repairs and works from unrestricted funds
-
-
12,000
(12,000)
-
196
(196)
-
Additional staff costs to be borne by music fund
Alloction of costs incurred by unrestricted funds
Transfer to make good a deficit on restricted funds
(4,000)
212,753
(47,587)
47,587
181,362
31,391
(212,753)
(212,753)
13. Description of funds
Endowment funds
William Groves Expendable Endowment
Funds received from the William Groves legacy as an expendable endowment to be used in
support of the Cathedral's activities and upkeep of the Cathedral.
Restricted funds
Church Commissioners Stipend grant
These funds represents the payment of Stipends by the Church Commissioners directly.
The total cost and corresponding income are reflected in the Statement of Financial
Activities and detailed in the notes to these accounts.
QARNNS – Chapel of healing and reconciliation
This fund represents monies raised to fund improvements & enhancements to the chapel of
healing and reconciliation.
Ritchie Bequest
This fund was created on receipt of a legacy, and has been restricted for use in support of
music.
Cathedral Sing
Cathedral Sing is a joint initiative funded by the Cathedral and the Diocese
providing choir workshops across the Diocese.
Sunyani
These funds, raised from events and congregational giving, are used to support the
Cathedral and Diocese of Sunyani, Ghana.
Landscape Project
Funds received for works to the Cathedral surrounds.
East Roof works
Funds received towards the cost of the roof repairs over the medieval part of the
Cathedral.
Organ repairs
Funds received towards the cost of repairs, improvements and additions to the organ.
East End redecoration
Funds received towards the cost of internal redecoration of the Cathedral.
Cathedral Tower
Funds received towards the cost of repairs to the Cathedral's tower.
Page 23
Cathedral Cloister's Windows and Roof
Funds received towards the cost of repairs to the Cloister's windows and roof drainage.
Unrestricted funds
General fund
These funds are unrestricted and available for the Cathedral’s use.
Development appeal fund
This fund represents amounts raised through the development appeal.
Property sinking fund
This fund is set up to provide for the planned preventative maintenance and improvements
of the housing stock.
Revaluation reserve
This fund represents the uplift in value of assets over and above their cost.
14. Capital commitments
There were no capital commitments as at 31 December 2014 or at 31 December 2013.
15. Pension schemes
The Cathedral participates in the Church of England Defined Contributions Scheme, part of the Church Workers Pension Fund. The Cathedral also
operates a stakeholder defined contribution scheme for the benefit of employees not in the Church of England scheme. The Cathedral’s contributions to
these schemes are disclosed in Note 3 to these financial statements.
Page 24
REPORT ON INVESTMENTS
The investment objectives given to our principal fund managers, Sarasin, are to achieve long-term capital and income growth and to provide a reasonable, regular
and foreseeable income to support the Cathedral’s current financial needs. This should be achieved by investing in a diversified portfolio of Investment Funds.
The selection of the Funds will be made to reflect the benchmarks established for asset classes.
A medium to low risk profile is taken on equities and performance is measured against a composite benchmark index.
Funds are invested in accordance with the Statement of Ethical Investment Policy issued by the Church of England Advisory Group.
Investments in property are to be either capable of efficient local management or in the form of managed property funds. Locally managed property is retained
either for the use of clergy or staff or may be let commercially. Managed property funds are held through CCLA.
Responsibility for the management of this policy rests with the Chapter, but authority to conduct stock transactions on a day-today basis under this policy is
delegated to the cathedral’s investment managers.
Property Investments
The Cathedral owns property to house clergy and staff and to use for offices. Other property is held for investment purposes and is rented out on a commercial
basis where possible to generate funds for the day-to-day operation of the ministry of the Cathedral. Part of the Cathedral House building is leased to the
Cathedral Innovation Centre at a rent below market value. Chapter consider this to be a contribution towards encouraging socially responsible business
innovation and an appropriate use of the facilities which would otherwise be under-utilised.
As part of the Groves legacy the Cathedral received ownership of a small shop in Petersfield, which following a review of its future with its tenants, who ceased
to trade was sold for £150,000 in 2014. The proceeds less expenses have been invested.
Returns from property excluding investment funds were £50,101.
Financial investments:
The Cathedral’s investments are made up as follows:
Asset allocation
Manager
Fund
CCLA
The CBF Church of England
Investment Fund
COIF Charities Property Fund
COIF Charities Investment
Fund
Segregated Portfolio
Managed Fund – Endowment
Managed Fund- Short term
reserve
CCLA
CCLA
Rathbones
Sarasin
Sarasin
Overall asset
allocation
UK
Equities
Global
Equities
%
%
47.0
34.9
48.1
5.05
28.8
UK Fixed
Interest
%
Global
Fixed
interest
%
Property
1.1
2.1
6.6
100
32.4
31.1
41.1
1.2
11.9
11.7
2.5
1.7
0.1
7.0
9.5
10.7
69.1
29.7
30.1
16.0
UK
Equities
Global
Equities
UK Fixed
Interest
£
Alternative
Assets
%
Liquid
Assets
Total
%
%
5.8
2.5
100
100
7.8
7.2
3.5
8.0
1.6
1.3
2.5
100
100
100
0.6
3.5
6.6
100
15.8
5.4
2.4
100
%
0.6
Market value
Manager
Fund
CCLA
The CBF Church of England
Investment Fund
COIF Charities Property
Fund
COIF Charities Investment
Fund
Managed Fund- Short term
reserve
CCLA
CCLA
Rathbones
Sarasin
Sarasin
Market value
£
76,146
£
56,542
1,782
Global
Fixed
interest
£
3,402
-
-
-
-
27,412
18,465
684
254,935
310,021
25,613
156,999
442.426
28,848
694,127
703,281
Property
Liquid
Assets
£
4,050
£
162,012
268,316
-
-
238,316
1,425
3,989
4,103
912
56,990
60,074
125,946
186,301
8,582
1,076
-
83,964
1,618
17,669
86,117
9,436
6,563
26,912
17,794
504,821
1,076,462
269,611
374,787
14,485
368,580
126,722
56,231
2,338,213
Page 25
£
Total
9,397
At 31 December 2014 our total investments excluding direct property holdings totalled £2,338,213.
£
10,693
Alternative
Assets
REPORT ON INVESTMENTS
Performance
Manager
CCLA
CCLA
CCLA
Rathbones
Sarasin
Sarasin
Fund
The CBF Church of England Investment Fund
COIF Charities Property Fund
COIF Charities Investment Fund
Managed Fund- Short term reserve
% Return
10.2
20.0
9.7
4.9
6.3
8.6
Returns are stated gross before management fees and expenses.
The FTSE WMA balanced index returned 4.2% over the year.
Page 26

Portsmouth Cathedral Financial Statements 31.12.14

Transcription

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