report and accounts year ended 31st march 2019 · 2019. 10. 11. · salisbury cathedral report and...

REPORT AND ACCOUNTS

YEAR ENDED 31ST MARCH 2019

SALISBURY CATHEDRAL REPORT AND ACCOUNTS

YEAR ENDED 31ST MARCH 2019 CONTENTS Page 1-2 Legal and administrative information 3-14 Report of the Chapter 15 Statement of Chapter's responsibilities 16-17 Auditor’s report 18-19 Consolidated statement of financial activities 20 Consolidated balance sheet 21 Cathedral balance sheet 22 Consolidated cash flow statement 23-37 Notes to the accounts

SALISBURY CATHEDRAL YEAR ENDED 31ST MARCH 2019

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LEGAL AND ADMINISTRATIVE INFORMATION Full name: The Cathedral Church of the Blessed Virgin Mary Address: 6 The Close, Salisbury, Wiltshire, SP1 2EF Governing statutes: Salisbury Cathedral Constitution and Statutes dated 1st July 2001 Members of Chapter: Dean: The Very Reverend Nicholas Papadopulos (from September 2018) Acting Dean and Chancellor: Canon E Probert ( Acting Dean July 2017 to September 2018) Canons Residentiary: Canon T Clammer (Precentor) (resigned January 2019) Canon A Macham (appointed May 2019) Canon E Probert (Chancellor) (Acting Precentor from November 2018) Canon R Titley (Treasurer) Canons in Holy Orders: The Venerable A Jeans Canon T Woodhouse Lay Canons Mrs J Barker Mr C Hurford – Jones Mr L March Mrs E Turton (appointment ended February 2019) Executive Director/ Mrs J Molnar Chapter Clerk:

Members of Council: Lord Sharman (Chairman) The Bishop of Salisbury The Dean of Salisbury (see note above) Canon T Clammer (Precentor) (see note above) Canon E Probert (Chancellor) Canon R Titley (Treasurer) Mrs J Barker Mrs K Beckett (resigned July 2018) Mr J Pitt-Brooke (appointed October 2018) Lady Madeleine Bessborough (term ended April 2018) Canon B Cave Mrs E Turton (term ended February 2019) Mrs S Woolley Judge K Cutler Mrs S Denniston Lady L Phillips Rev Dr D Coulter Mr John Glen MP Ms Elinor Goodman


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LEGAL AND ADMINISTRATIVE INFORMATION (Continued) Finance Advisory Group: Mrs J Barker (Chairman) The Dean Mr R Creswell Mrs B Hollond Mr L March Mrs E Osborne Mr S Lamdin Mr A Hunter (appointed March 2019) Fabric Advisory Committee: Sir Hayden Phillips (Chairman) Mr P Dean Dr J Goodall The Very Reverend V Stock Mrs W James The Reverend B Saunders Ms A Eavis (in advisory capacity from March 2018)

Lay managers: Ms J Morgan, Director of Communications and Development Mr D Halls, Director of Music Mrs A Crampton Director of Learning & Outreach (from June 2018) Mr R Gurd, Director of Finance Ms N Stafford, Human Resources Manager Website address: http://www.salisburycathedral.org.uk Professional advisers: Bankers: Lloyds plc, 38 Blue Boar Row, Salisbury, SP1 1DB Solicitors: Parker Bullen, 45 Castle Street, Salisbury, SP2 7JR Auditors: Fletcher & Partners, Crown Chambers, Bridge Street, Salisbury, SP1 2LZ Investment managers: CCLA, Senator House, 85 Queen Victoria Street, London Schroders, 12 Moorgate, London, EC2R 6DA Sarasin & Partners LLP, Juxon House, 100 St. Paul’s Church yard, London Land agent: Strutt & Parker, 41 Milford Street, Salisbury, SP1 2BP Architect: Izaak Hudson, dittrichhudsonvasetti architects, Studios 12-13, 9 Bath Buildings, Montpelier, Bristol, BS6 5PT Archaeologist: Graham Keevil, 85 Kynaston Road, Didcot, Oxon, OX11 8HA

http://www.salisburycathedral.org.uk/


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REPORT OF THE CHAPTER THE GOVERNANCE OF THE CATHEDRAL The governance of the Cathedral is regulated by statute, the principal of which is the Cathedrals Measure 1999. This establishes the basic principles with which all Cathedrals must comply and a structural framework to inform governance mechanisms. The Cathedrals Measure requires each Cathedral to produce its own separate statutes. These statutes interpret the dictates of the Measure according to local or historic use, and in particular specify the functions and responsibilities of individuals, both clerical and lay, and establish the administrative framework. Cathedral Chapter Salisbury’s statutes were issued on 1 July 2001. They determine that the governing body of the Cathedral is the Chapter, consisting of the Dean, the three Residentiary Canons (Precentor, Chancellor and Treasurer), two non-residentiary Canons elected by the clerical members of the College of Canons, two lay members elected by the lay Canons of the College and two co-opted members appointed by Chapter. With the exception of the Dean and Residentiary Canons members hold office for three years but are eligible for re-election or re-appointment. Induction and training of new members is the responsibility of the Executive Director and Chapter Clerk who produces a programme of briefings and visits to ensure familiarity with the administration, management and finances of the Cathedral. Any new member of Chapter also attends the training programme provided by the Association of English Cathedrals which also provides the opportunity to meet with other colleagues from other cathedrals. Chapter undertook a comprehensive review of governance in 2013 following consultation with the Cathedral Council, and adopted a new code of good governance. It is expected that this will need to be reviewed in the next year or so due to the recommendations of the Archbishops’ Council’s Cathedrals Working Group consultation that took place early in 2018. It is for this reason that the Cathedral has not undertaken its own governance review. Chapter has also adopted, and undertaken, the self-evaluation framework supported by the Association of English Cathedrals (AEC), this was completed in 2016. During the 2018/2019 year some Chapter members attended training in Finance, Governance and Strategic Marketing provided by the AEC. The Finance training was completed in collaboration with Winchester Cathedral and this partnering approach proved very helpful. Chapter meets on a monthly basis; there is an established schedule of reports and matters for consideration - decision making is informed by reports and information provided by the Executive Director and Chapter Clerk as well as the Cathedral’s Executive team and Advisory committees. Cathedral Council The Cathedral Council was established under the Cathedrals Measure to “further and support the work of the Cathedral, spiritual and temporal, pastoral, evangelistic, social and ecumenical, reviewing and advising upon the direction and oversight of that work by the Chapter”. It met twice during the year under the chairmanship of Lord Sharman. It considered the recommendations made by the Archbishops’ Council’s Cathedrals Working Group Consultation, received reports on the Cathedral’s Annual Delivery Plan and the Annual Report for 2017/2018. Council was also apprised of key messages from the first national cathedrals conference (2018), discussed the challenges facing the Cathedral and city of Salisbury in light of the nerve agent attack in 2018 and debated the issue of social justice and the work the Cathedral undertakes in this area. College of Canons The Cathedrals Measure requires the Cathedral to establish a College of Canons consisting of every Canon of the Cathedral, including the Bishop, the Dean, the suffragan bishops and every archdeacon in the Diocese. In its membership the College expresses the close relationship between the Cathedral and the rest of the diocese of Salisbury. The College met twice during the year and installed eight non-residentiary Canons and three lay Canons and bade farewell to six members. College discussed a number of issues including the impact of the nerve agent attack and subsequent recovery planning work in which the Cathedral played a central part in city discussions. In addition College received information on the Annual Report for 2017/2018, the Annual Delivery plan for 2018/2019 and an update on the Cathedral’s targeted outreach work.


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Executive Chapter is supported by Directors and staff who undertake the operational administration of the Cathedral. The Executive work in partnership with the Residentiary Canons who provide oversight and, as appropriate, managerial expertise. The Dean chairs both Chapter and the Executive which ensures that Chapter leads and directs and the Executive implements the Cathedral’s objectives. The Executive meets on a monthly basis, receiving reports on routine items such as financial position and visitor numbers and other matters that arise during the course of the year. During the 2018/2019 year, Chapter and Executive met collectively to discuss key strategic issues and concerns. Over the course of a full day they considered the impact of the nerve agent attack on visitors and income and how best to respond both in the short and longer term. In addition the meeting reflected on changing priorities for the rest of the year and into the coming year. An additional half-day meeting focused on options to realise the best use of a number of sizeable properties in the Close aligned to the aspirations set out in the Cathedral’s Master Plan – An Exceptional Place. Such meetings provide a valuable opportunity for Chapter and Executive to work in partnership, reflecting on pressing challenges as well as opportunities. Principal risks and uncertainties The risk register records the principal risks to which the Cathedral is exposed. The risks are assessed under the following categories: financial failure, visitor numbers, people, Cathedral development, regulatory compliance, major physical disaster, IT and operations, reputation and standing. The risks are reviewed on a quarterly basis by the Executive and Chapter and systems are in place to mitigate risks as they are identified. Unsurprisingly the main areas of risk during 2018/2019 related to finances and visitor numbers following the nerve agent attack that took place early in the year, and a second incident in the summer. This unexpected event had a significant impact on visitor numbers; across the year numbers were down by 12% compared to previous year’s figures. Correspondingly the Cathedral had to manage a major change to its planned budget, visitor donations account for more than half of its routine income. It is extremely difficult to scenario plan for such an event, however the Cathedral instigated its own internal recovery planning team and became a key participant in the city-wide recovery process. The Cathedral also provided a place of solace and the Les Colombes Art installation, planned some 18 months before hand, was a potent symbol of hope which spread across the city. As a result of these events the Cathedral has improved its monitoring of visitor numbers and use of management information to inform decision-making. Controls are well established to ensure the Cathedral’s financial activities are properly managed. These include budgetary control, authority levels, monthly management account reports to Executive and Chapter as well as meetings with the Finance Advisory Group. This was particularly important during the year and discussions at the annual Chapter and Executive Strategy Day led to a re-prioritisation of activities for the remainder of the financial year in order to try and draw visitors back to the Cathedral. In other principal risk areas the Cathedral has continued to maintain the work of its Health and Safety Committee, fire evacuation policies and procedures. These documents are reviewed annually by the Committee, operational oversight is provided by the Executive Director and Chapter Clerk and strategic oversight by the Canon Treasurer. The Cathedral continues to be mindful of risks associated with security breaches. The hammer attack on the Magna Carta display case in October 2018 led to a review of existing measures and protocols with actions subsequently being taken to increase CCTV, install a more robust display case, panic alarms and changes to the routine security patrols. The Executive Director and Chapter Clerk continues to meet on a quarterly basis with the local Police Counter Terrorism Advisor to review security arrangements.


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Principal risks and uncertainties (continued) The Cathedral’s Safeguarding policy and procedures were reviewed by Chapter in July 2018. The Cathedral has an independently chaired Safeguarding Advisory Group, members include representatives from the Diocesan Management Safeguarding Group, the Cathedral School and congregation as well as Cathedral staff. The Cathedral works closely with the Diocesan Safeguarding Advisor and Training Officer to ensure compliance with new Church of England practice guidance and policies. The Cathedral has an established service level agreement with the Diocese for safeguarding matters which was renewed during the year.

PLANS FOR FUTURE PERIODS CATHEDRAL STRATEGY PLAN 2017-2022 The Cathedral’s current Strategic Plan was agreed in 2017 after discussion by Executive and Chapter and engagement with the wider Cathedral community. The Plan states that: Our Purpose is: Making a difference for God through exceptional worship and outreach. Our values are: Integrity, reflected in transparent, fair and consistent actions; Generosity, which generates a warm open welcome to all; Compassion, which promotes social justice, equality, diversity, dignity, consideration and respect for all. And our ambition is to be a beacon of confident, open Christianity with a reputation for warmth of welcome and willingness to engage with others. Our purpose, values and ambition were set out in full in our Strategy for 2017-2022 and Annual Delivery Plan for 2018/19, which also articulated the main goals and priority actions we propose to take to achieve measurable progress. PUBLIC BENEFIT The Cathedral is recognised as a charity for tax purposes. Although the Cathedral is not regulated by the Charity Commission, Chapter confirms that it has had regard to the Charity Commission in determining the activities of the Cathedral. The Cathedral not only serves the community daily in its religious and charitable work, but is an active resource of national importance in the promotion of religion, music, education, history and architecture. We have an active outreach programme through which we seek to make a tangible difference. In 2018/19 this included work with Erlestoke Prison, community groups meeting the needs of those with learning disabilities and also residential care homes. We have an established education programme with schools throughout the Diocese and have engaged in projects to help with mental health and well-being issues. The Cathedral’s annual review along with this annual report describe the activities that deliver these core benefits. WORSHIP The 2018/2019 year saw changes within the ministerial team with the Cathedral being in a time of interregnum until the arrival of Dean Nicholas in September 2018. Furthermore the Precentor left the Cathedral in January 2019 which added to a time of flux along with the many impacts that arose from the nerve agent attack. However throughout this the Cathedral continued to fulfil its vocation and maintained an enriching provision of daily, weekly, seasonal and special worship. Some of the particular highlights during the year include hosting Thy Kingdom Come: Salisbury Diocese Pentecost Service in 2018 for the first time. It was a very successful collaboration with members of Churches Together and a congregation of over 1,000 people.


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WORSHIP (continued) The Cathedral had the pleasure of hosting the Southern Cathedrals Festival in July 2018. It was a feast of high quality music, based on the theme of the 100th anniversary of the ending of World War I. There were many elements to the festival but a concert featuring music by Handel and Purcell was particularly notable as was the concluding event of Brahms’ Requiem. The new Dean was installed in September 2018 and the service offered a fine celebration of this new phase in our common life, incorporating a new hymn specially written by the Dean of Canterbury, and a new anthem written by David Halls. As 2018 drew to a close the From Darkness to Light advent procession was especially memorable and the Cathedral took the imagery of darkness into light to theme a lighting installation in the Cathedral Close and cloisters. It was very rewarding to see that attendance at key services throughout the year were very high with the Cathedral full to capacity on almost each occasion.

The beginning of 2019 saw the dismantling of the Willis Organ for at least a year due to the need to undertake a full repair and restoration programme. During the dismantling process, the Quire was covered in scaffolding making some areas inaccessible and causing us to rethink the positioning of the choir and congregation, and general movement for almost all services. For the interim a high quality digital Allen organ has been hired to meet some of the needs, and our musicians have taken the opportunity to programme music using different resources and ensembles. Although the work brings significant disruption it will provide the opportunity to try different approaches to worship and music.

The Cathedral’s main choir has had a busy year, in addition to which the Chamber, Junior and Youth choirs have all undertaken their own programmes throughout the year. It has been pleasing to see them drawing more people to the Cathedral, taking part in the Cathedral’s life and music out to the wider community.

FUNDRAISING The 2018/2019 year has proved very successful in terms of fundraising and we are grateful to all who give so generously whether on an individual basis or through trusts. The contributions we received make a significant different to the wide range of the Cathedral’s life and work. Throughout the year fundraising continued for the vital repair and conservation work on the east face of the Cathedral. We benefited from some significant donations towards this work including grants from the H B Allen Charitable Trust, Allchurches Trust, Alice Ellen Cooper Dean Foundation and the Warren Charitable Trust. Our Sponsor a Stone scheme is always a good source of funding for the repair programme with 18 new sponsorships being made during the year. Overall the scheme for this period has raised over £31,000 towards the conservation of the East face. We also received the second year of a grant from The Cayzer Charitable Trust for the stonemason’s apprenticeship, and the Masons’ Company continued with their support towards the degree course for a stonemason. Other fundraising activities have included screening the film Secret Spitfires with the profits from the ticket sales being donated to the Cathedral. We held receptions at Stanbridge Mill in June 2018 and Longford Castle in September 2018 which raised over £12,000 for the repair programme. These gatherings are also a good opportunity for us to talk about the benefits to cathedrals that come from legacies, in particular giving a measure of confidence in planning long-term projects and conservation work. During the year we were very pleased to receive four legacies. The Cathedral continues to benefit from the generous support of the Salisbury Cathedral Friends. This year the Friends have contributed a large grant for the organ restoration project. They were also able to continue their annual support for the Little Paradise which is greatly appreciated and a significant achievement given the contributions being made over a number of years.


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FUNDRAISING (continued) Fundraising for the major task of restoring the Cathedral’s Father Willis organ was launched mid-April 2018, at a reception following the first recital of the 2018 series. The total raised for the restoration project in the financial year 2018-19 was £340,000 which included a very generous donation from a supporter Eva Bjorkmann and we were very pleased to be awarded a grant of £82,300 from the Heritage Lottery of which £41,000 has been received in this financial year. The ‘Behind the Pipes’ special initiative brought in £4,500 and the Organ Prom held in August 2018 deserves a special mention – it was a hugely popular event and raised over £8,000 for the restoration project. The organ work will not be completed until early 2020 so this will continue to be a major focus for our fundraising activity and we are very grateful for all who contribute. Alongside fundraising for the organ, there have been other areas of our music which have benefited from fundraising. This has included almost £29,000 towards music costs including bursaries, and we were really pleased to have two new five year boy chorister sponsorships pledged this year. Due to these contributions and other support for chorister bursaries, the Cathedral was able to keep to its commitment to give 30% of fees to all choristers, and ensure that children from all financial backgrounds were given an equal chance to develop their musical talent. We were grateful too for donations to the Salisbury Cathedral Junior and Youth Choirs during the 2018/2019 year. These choirs are free to join and have proved a popular way for local children within the community to learn to sing and gain from the confidence and companionship of singing and performing in a group. The fundraising team has also secured £7,000 towards the exceptional visual art programme at the Cathedral, with the help of retiring collections following talks by John Elliott and Alexandra Ormerod, individual donations from Salisbury Cathedral Art Fund supporters and a grant. There have been a number of Private Views organised, such as for ‘Les Colombes’ and for the exhibition of Miracle Paintings. These are a very good opportunity of encouraging people to engage with the Cathedral and potentially draw more visitors to be part of the work being undertaken.

Across other projects, we received a grant of £7,700 from the Heritage Lottery Fund for our ‘Binding the Past to the Present’ exhibition in commemoration of the First World War. The project, led by artist, Suzie Gutteridge, and a small team of Cathedral volunteers, worked with a total of 15 groups within our community to reach over 230 participants. The three year project Beyond the Library Doors has benefited from a grant from the Pilgrim Trust. A £10,000 donation from two generous donors was received towards general conservation work in the library and archives and we are extremely grateful for this gift. It has been a busy, but rewarding year and the Cathedral is grateful to all who have provided financial support. OUTREACH The Cathedral has continued to offer a varied programme of outreach work and activities aimed at encouraging the local community and visitors to engage with the life of the Cathedral and to experience something of our mission and purpose. There has been a rich combination of large art exhibitions and smaller community-focused projects curated by our Visual Arts Adviser Jacquiline Creswell. We are very grateful for her time and expertise in curating a range of different art exhibits which challenge and provoke those who experience them. The spectacular installation Les Colombes by Michael Pendry was organised more than a year before 2018 but it captured the imagination of the city as a symbol of peace which was very poignant given the turbulent year. It was exceptional and inspiring to see the origami doves spread throughout the city as the local community became involved and the Cathedral was able to offer a powerful symbol of resilience and recovery. As part of our Wartime Memories weekend we installed Rob Heard’s textile piece called the Shrouds of the Somme. This received widespread media coverage for the centenary of the end of WWI and added to the impact of the Binding the past to the present through Remembrance exhibition by Suzie Gutteridge. This particular exhibit enabled us to provide outreach work through multi-generational felt-making and sewing workshops with the local community. As we found with Les Colombes, it is often the simple images and activities that can make a powerful impact on those who engage.


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OUTREACH (continued) We have hosted the Miracle Paintings exhibition by Professor Stephen Farthing as part of the Royal Academy’s 250th anniversary. This was very well received and a particular pleasure to be the first place to exhibit the work which took the artist over eight years to produce. For Advent, we created a compelling Darkness to Light installation with light sculptures by David Ogle, Squidsoup and Richard McLester which attracted significant number of visitors. Finally we took part in the Art50 project by Sky Arts, reflecting on the UK’s identity as it was due to depart the EU through Ladders of Light – a new constitution for the UK by Mary Branson and the poet Lemn Sissay. During the exhibition, we arranged for Lemn Sissay to give an inspirational talk to children in care, social workers and foster carers about his life growing up in care. This was well received and another example of how our Art work provides a mechanism through which to engage people from all backgrounds and interests. The restoration of the Father Willis Organ has provided a special opportunity to offer visitors and others access to this extraordinary part of the Cathedral. Funding from the Heritage Lottery Fund along with Cathedral resources developed an interactive exhibition – Pulling out the Stops – which enables visitors to learn about the history of the organ. As part of the exhibition visitors can learn about its installation in 1877 through to the present day, this incorporates touch screen technology and the chance to play a keyboard to recreate the sound of the organ. During the year we held a range of targeted activity for people who are experiencing mental health issues. As part of a social prescribing pilot, three creative art courses were offered in which participants were able to learn new creative skills in textiles, stone carving and drawing. In a new partnership with the Richmond Fellowship we also hosted a 10-week programme of immersive history called Sacred Spaces and Sanctuary. A well-attended Carers’ Café was set up and continues to meet monthly in our Refectory. A Celebrating Age event for older people was held in June as was One Day Like This, designed to enhance wellbeing by presenting opportunities to explore the Cathedral in a number of unusual ways for example through a silent disco. Our relationship with HMP Erlestoke has continued, with our stonemasons carving a WWI memorial designed by the prisoners which was then installed at Erlestoke. Later in the year, the prisoners took part in Unearthed, through which they explored questions of identity using archaeology and ceramics. Our well-established Schools programme continued to offer a range of learning opportunities. The Cathedral was filled with 1500 schoolchildren for the annual Year 6 Leavers’ Celebrations and families have enjoyed the regular trails and holiday activities we have been able to offer. One of our aims is to engage more with older children, particularly teenagers, and we held a Remembrance Day conference for sixth formers on War, Peace and Reconciliation to which Schools in the local community were invited. The Beyond the Library Doors project has made significant progress in improving the accessibility of our library and archives. Due to the project we now have an online searchable database and have improved the records we hold of many items in our collections. As part of the project our Library and Archives staff have provided a number of outreach events and workshops during the year. One which provide particularly popular was a library discovery day with a rare opportunity to visit the library on the weekend to hear talks and see how volunteers have been cleaning its books. Finally another major achievement has been the introduction of a new accessibility guide. It aims to ensure that visitors with disabilities are able to plan their visit and receive the support they require so they can enjoy their time at the Cathedral and get the most from their visit. All of the outreach events and activities throughout the year provide us with many, diverse opportunities to connect people to the Cathedral and for us to make a practical difference to people’s lives. The Cathedral continues to depend on its thriving community of 620 volunteers and is extremely grateful for the contribution that so many people make.


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THE CATHEDRAL SCHOOL In School is financially independent of the Cathedral and its results are therefore not included within these consolidated accounts. In practice, however, the relationship between the Cathedral and the School is both longstanding and profound, and extends beyond the provision of choristers. Chapter is keen to see the school flourish and has worked closely with the Headmaster and Governing Body on a range of issues throughout the year. The 2018/2019 year was the first full year for the Chorister Tutor role, which is funded by the Cathedral. This has made a significant difference in providing support to Choristers and supporting their well-being. The School Governing Body saw the arrival of a number of new Governors with particular experience and skills that will be beneficial to its aspirations to grow and develop. THE CATHEDRAL AND THE CLOSE The Close environment, excluding the Cathedral School, includes the Churchyard, Choristers’ Green and Marsh and Rack Closes and incorporates a diverse community. There is a school, the Cathedral, Sarum College, two museums and two further properties open to the public. Looking after the Close and the environment falls primarily to the Cathedral and includes the upkeep and maintenance of the Cathedral precincts. The Cathedral bears the entire cost of maintaining the Close. The Close environment, including its Grade 1 listed wall, has continued to require attention which has to be accommodated alongside the ongoing repairs and conservation of the Cathedral itself. The Cathedral repair programme is ongoing but will gradually move into regular maintenance rather than major project work. The Cathedral holds the Silver Eco-Church Award and we have aspirations to achieve gold in due course. It has been good to see active support of the Eco-Church projects by those who live and work in the Cathedral Close, in particular during 2018/2019 the instigation of a mapping project to understand more about the flora, fauna and birdlife that exist in the Close. Alongside this we continue to need to maintain and develop our own properties. During 2018/2019 resources have been used to renovate one particular property with the intention of increasing the number of short-term leases helping to diversify income. During the year Chapter has reviewed the Property Portfolio Strategy which aims to maximise use of the commercial and residential property within its remit. A particular focus for Chapter during the year has been considering the future use of some key sites within the Close that have either become vacant or returned to Cathedral ownership. As noted under risks, security has continued to be a significant issue in and around the Cathedral Close. Following the attack on Magna Carta and a perceptible increase in members of the public displaying challenging behaviour, a number of actions have been taken to enhance our security measures within the Cathedral and the Close. In accordance with the Cathedral’s commitment to being outward facing, a Street Pastors group has been in place which includes walkthroughs of the Close. During 2018/2019 it was also agreed to recruit a Minor Canon for Young People with a specific focus on engaging with the young people who gather in the Close throughout the year. HUMAN RESOURCES The Cathedral employs around 100 staff and is also grateful for the 620 or more volunteers who freely give of their time. We are therefore a medium-sized, not-for-profit business and work hard to support our staff effectively and contribute to their personal development. We have seen a number of changes during 2018/2019, most notably the arrival of Canon Nicholas Papadopulos as the 81st Dean of Salisbury. The year-long interregnum was led by Canon Edward Probert as Acting Dean, providing stability and continuity as the lengthy process of appointing a new Dean was completed. We said farewell to Canon Tom Clammer, Precentor, who left the Cathedral in January 2019 after many years of ministry and service. The Cathedral’s life was enriched by Tom’s liturgical skill, musical gifts and wisdom as a teacher and this was recognised by the generous and warm farewell he received from Chapter, staff and the congregation. Chapter was pleased to be able to support Tom as he transitioned to the next stage of his ministry.


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HUMAN RESOURCES (continued) There have been many other departures and arrivals and the addition of some fixed term posts to support particular projects, in particular the programme of activities for the 800th anniversary celebrations in 2020. Overall the changes have been effectively managed and the Cathedral continues to value the commitment and hard work of its employees. A number of other activities have taken place across the year, with a particular focus on improving communication and staff engagement in response to staff survey feedback. This was led in large part by the interim HR Manager covering maternity leave, and the Executive Director and Chapter Clerk. The Cathedral’s Human Resources and Remuneration Committee (RemCom) considers any proposed changes to job descriptions and salaries. We have a long established process for dealing with any adjustments whereby they are first reviewed by the Executive Director and Chapter Clerk and Director of Finance who then present recommendations to RemCom for consideration. If changes are proposed to the scope or salaries of senior managers’ roles these are discussed by the Executive Director and Chapter Clerk and RemCom with reference to sector rates. We have continued to invest in staff development and training. It has been possible to support both individual development needs and also continue to provide collective staff training in collaboration with staff at Wiltshire College. CATHEDRAL COMMUNITY FORUM The Cathedral’s Statutes provide for the establishment of the Salisbury Cathedral Community Forum. The Forum comprises people associated with the Cathedral in the broadest sense, but with a particular emphasis upon congregation, staff and volunteers. It has a number of responsibilities which are primarily to support the mission of the Cathedral, in co-operation with Chapter and to present to Chapter the views of those who regularly worship or volunteer in the Cathedral. Two members of the Forum are also members of the Cathedral Council which provides another opportunity for contributing to discussion on the work of the Cathedral. A regular contribution of the Forum is to suggest to Chapter each year appropriate recipients for the percentage of donations that the Cathedral gives to charities whether on an international, national or local basis. During the 2018/2019 year the Community Forum played a key part in the six-yearly renewal of the Cathedral Congregational Roll which is a significant undertaking. The Forum was also involved in the review of our welcome literature for new worshippers and the development of an ecological survey for the congregation in support of the Cathedral’s work towards the Eco Church Gold award. It has also continued to co-ordinate collections for Salisbury Foodbanks. We are very grateful for the time and commitment Forum members give and the contribution they make to our life. FINANCIAL REVIEW RESULTS When setting the budget for 2018/19, we considered the fact that 2018 had started quietly for visitors. Visit Britain’s forecasts for 2018 showed a slower rate of growth in volume and value of visitors and day visits in England were showing a 4% decrease. While there were some positive indicators such as the weaker value of the pound, our additional income projections were set at a cautious 1% increase on the previous year. In the event, as the 2018/19 financial year began we were in unpredictable territory in relation to visitor numbers and income, given the nerve agent attack in March 2018. It was evident fairly early in the financial year that visitor numbers and income were down on both the previous year and on budget. The number of group visits were relatively stable by comparison with visits from individual, independent travellers and it was clear that people were concerned about security. This was compounded in July 2018 when a second incident took place and a Salisbury resident sadly died. It became evident that the Cathedral’s peak visitor season during July and August was experiencing a reduction of 21% in visitor numbers compared to the previous year.


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FINANCIAL REVIEW (continued) Across the year the visitor numbers did begin to improve but only gradually and we ended the financial year 12% down against budget and previous year’s figures. The Cathedral had established an internal recovery planning team early in the year and through a combination of deliberate actions, careful monitoring and prudent financial management over the last five years or so we were able to manage a very difficult and unpredictable year. In the year to 31 March 2019, our deficit of expenditure over income on our normal activities amounted to £215k (2018: Surplus of £611k along with a restricted legacy from the Ivor Read Charity of £4,148k recording a total surplus of £4,759k). This year the Cathedral received significant specific donations and grants to help towards the costs of the organ project and work on maintaining the fabric repair of the building. A significant reduction in visitor income reflects the difficult year suffered in Salisbury following the nerve agent attack. A number of new projects started in the year; we committed £269k on the organ project, £44k to the light installation marking Darkness to Light, £68k to the choir tour. With chapter approval the staff expenditure increased by £216k and expenditure on the continuing improvements to the Cathedral’s property portfolio also increased by £154k. We are required to record Gifts in the year in which they are received and monies cannot be carried forward to be matched with the expenditure in future years which they are intended to fund. Inevitably therefore this accounting requirement can give rise to swings in income and expenditure. Our investment income has remained strong during the year not being effected by the change of investment managers, making a substantial contribution to the year end result. We continue to have an annual commitment to an average spend of £500k on the Repair of the fabric of the building which therefore requires donations of equivalent amounts each year to fund it. We are most grateful for the donations received in the year towards these costs. They included a distribution of £250k from the HB Allen Trust and £31k from the sponsor a stone initiative. INVESTMENTS The Statement of Financial Activities discloses that the Cathedral made unrealised losses of £121k on its investments in the year. These losses are "unrealised" because they reflect the change in the market valuation of the Cathedral's investment portfolio between 31st March 2018 and 31st March 2019. Details of the movements in investments in the year can be found in note 8 to the accounts. The primary purpose of the investment portfolio is to generate income to support the Cathedral's activities. We have a stated investment objective which is ‘to maximise total return whilst adopting a moderate approach to risk’ and we have a requirement for a relatively high level of income. These objectives should be achieved through an income-biased balanced portfolio of equities, property and cash. Given the long-term time horizon of the Cathedral, the investments are in a diversified multi-asset portfolio with an emphasis on equities, designed to target both growth and income. A fluctuation in the capital value of the fund holdings may lead to unrealised gains or losses but not necessarily change their ability to generate income. Our portfolio is managed by professional investment managers and their performance is monitored on behalf of Chapter by the Cathedral's Finance Advisory Group. The Cathedral has set an ethical investment policy (which draws on guidance given by the Church of England). The CCLA funds are all in line with the Church of England’s ethical investment policy. During the year, the management of the majority of the Cathedral’s investments was switched to CCLA from Schroders with realised gains of £1,004k. These arrangements were approved in full by Chapter following recommendation from the Finance Advisory Group.


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RESERVES AND INVESTMENT POLICIES The Consolidated Accounts have been prepared in compliance with the Accounting and Reporting Regulations for English Anglican Cathedrals as promulgated by the Association of English Cathedrals. It is important to note that:

the majority of investments are held on endowment and the capital cannot be realised to meet ordinary expenditure

the greater part of the endowment consists of the Close properties, a number of which are let on long repairing leases

the investments totalling £4,226k are held at Sarasin’s and Schroders of which £4,100k are for the restricted Ivor Read fund (maintaining the fabric of the building).

The investments include realised gains of £1,004k following the change of investments from Schroders to CCLA.

The investments include net unrealised losses of £121k (2018: £70k losses) on the revaluation of investments.

Endowed capital cannot be used to repair the Cathedral or Close properties. Under The Cathedrals Measure 1999 Chapter may invest the Cathedral’s funds in any of the following:

land

investments in which trustees may invest under the general power of investments in the Trustee Act 2000

the improvement or development of property belonging to the Cathedral, except that endowed funds may not be used to improve or develop the Cathedral itself or its ancillary buildings without the express authority of the Church Commissioners.

The Cathedral's Endowed Funds, both income and capital, may be used to improve the freehold properties owned by the Cathedral. During the year, a donation was received from the Friends of Salisbury Cathedral of £74k (£74k) for the Cathedral toilets known as Little Paradise. Expenditure was for improvement works to investment houses in the Close, three operational properties and two staff occupied properties, along with investment management fees which resulted in a deficit of £308k (£192k) for the year before net unrealised gains on property and investments were taken into account. Policy in relation to reserves held in unrestricted funds The Cathedral’s unrestricted funds are those funds that are available to carry out its day to day ministry, education and outreach activities together with the basic upkeep of its buildings and precincts. Income is principally derived from visitors, property rents, investments and trading activities. Given the fluctuations in its income streams that are largely outside of its control, Chapter has agreed a policy of retaining in unrestricted reserves an amount at least equivalent to eight months’ annual expenditure ensuring the Cathedral holds appropriate resources in order to maintain necessary activities in times of income shortfall. The Cathedral has met this target over the last three years with careful financial management and this policy gave some measure of assurance during the uncertainty at the time of the poison attack. At 31 March 2019, the Cathedral had £3,542k in unrestricted General Fund reserves, which is equivalent to 68% of total annual expenditure. While this is slightly higher than the Reserves Policy of eight months total expenditure, the 2019/20 budget continues to support the delivery of the 5 year Strategic Plan 2017-2022. Prudent financial management has been applied to maintain the many and varied activities planned by the Cathedral together with new outreach initiatives aligned to the Cathedral’s social justice commitment and the desire to make a practical difference in the community.


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RESERVES AND INVESTMENT POLICIES – (Continued) Further investment will need to be made on the Cathedral’s property portfolio along with providing funds for legal & professional fees in relation to An Exceptional Place, the Cathedral’s master plan. Two designated funds have been established to cover improvements required for the visitor experience which we know will be a key priority in 2019/20 in light of the impact of the nerve agent attack. In addition resources will be required for the Cathedral’s ongoing operational needs and these have been provided for under the organisation development fund. The Cathedral also needs to ensure the fabric repair programme funding is continued to support completion of the ongoing work, associated with this is development of a new enterprise model for our glazing and works department. All our planned activity will be supported through continued investment in staff and in digital and information technology to ensure we develop our understanding, responsiveness and engagement with people in ways that reflect our values while also increasing our resilience as an organisation. The Cathedral is immensely grateful for the faithful financial provision of its congregation and longstanding supporters, both personal and trusts. We continue our endeavours to widen that circle of support through our fundraising initiatives and by our mission and objectives which we hope inspire others and enable us to make a difference through exceptional worship and outreach. CONCLUSION Ten months after my installation as Dean I am relishing the daily opportunities and the challenges that the role brings. That the opportunities outnumber the challenges is due in large part to the distinguished ministry of my predecessor, June Osborne. I am grateful to her for her long and substantial service of Salisbury Cathedral. Among her many legacies is the first-rate team of colleagues with whom I am honoured to work. Among them I am particularly grateful to the Canon Chancellor and Sub-Dean, Edward Probert, who oversaw the vacancy after June’s departure with enormous care and diligence. The opportunities that the Cathedral now has have also been created by the shocking nerve-agent attack on the city in 2018. Among the attack’s consequences have been a new realization of the valuable assets with which Salisbury is blessed - including its natural environment, its architectural heritage, and its cultural offer – and a new realization of the importance of their working together to our community’s common advantage. In September 2018 the Association of English Cathedrals sponsored its first national conference with the title “Sacred Space: Common Ground”. These two descriptors have seemed particularly relevant and appropriate to Salisbury in my first year. This is a holy place, where the daily offering of worship and prayer is of primary significance. This is also common ground, where in a national climate which is febrile and fragile the great questions of life and death can be asked, debated and reflected upon in safety. As the custodians of Magna Carta in a city newly marked by the faultlines of the geopolitical power struggle our vocation to be common ground for all is, perhaps, evident. That is the spirit in which the Salisbury Conversations 2019 were conceived. On three consecutive weeks in Lent a range of writers, observers and commentators gathered in the south transept to discuss three significant questions. How do we live well? How should we speak to one another? How ought we be governed? Our colleagues at BBC Wiltshire recorded and broadcast the sessions. We are grateful to them. The Conversations were and will be one part of our response to the challenge to be common ground. The process of implementing the recommendations of the Archbishops’ Council’s Cathedrals Working Group continues to unfold. A final report was debated by the General Synod in July 2018. Its different areas of focus were worked on nationally by groups comprising cathedral representatives and staff from the National Church Institutions. As I write, a draft of a new Cathedral Measure has been produced and will be received by the General Synod in July 2019. Much of what the draft Measure requires has already been anticipated in Salisbury. We will in due course be required to re-write our Constitution and Statutes, but the culture-change here will be felt less acutely than (perhaps) it will be elsewhere.


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CONCLUSION – (Continued) An immediate preoccupation is 2020, when Cathedral and city observe the 800th anniversary of their refoundation on their current site in 1220. With the overarching theme of ‘A City on the Move’ a number of large-scale events will be the focus of the Cathedral’s celebration, and we look forward to working with city colleagues to ensure that the celebration is a truly city-wide affair. In the medium-term two sites in the Close are occupying the Chapter’s attention. The first of these is the Leaden Hall which, as was reported last year, has unexpectedly reverted to our immediate stewardship. The second is the south side of the Cathedral, which has been the location of the Works Department for a generation. Plans are being developed to re-purpose both sites in ways that are commensurate with our ambition to make a difference for God through exceptional worship and outreach. It is a huge privilege to serve here. I commend with confidence this report on the year that is past. I

look forward with the same confidence to the year that is ahead.

The Very Reverend Nicholas Papadopulos Dean of Salisbury July 2019


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STATEMENT OF CHAPTER'S RESPONSIBILITIES FOR THE PREPARATION OF THE ACCOUNTS The members of Chapter are responsible for preparing the annual report and accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Under the provisions of the Cathedrals Measure 1999 and the Constitution of Salisbury Cathedral Chapter is required to prepare accounts, for each financial year, which give a true and fair view of the state of the Cathedral's affairs and of its financial activities during the year. In preparing those accounts members of Chapter are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

comply with applicable accounting standards and, in particular, prepare the accounts in accordance with the Accounting and Reporting Guidelines for English Anglican Cathedrals prepared by the Association of English Cathedrals, subject to any departures disclosed and explained in the accounts;

state whether the accounting standards and Guidelines referred to above have been followed; and

Prepare the accounts on the going concern basis unless it is inappropriate to presume that the Cathedral will continue to be financially viable.

The members of Chapter are responsible for ensuring that the Cathedral keeps proper accounting records which disclose with reasonable accuracy the financial position of the Cathedral and which enable them to ensure that the accounts comply with the provisions of the Cathedrals Measure 1999 and the “Guidelines on English Anglican Cathedrals Accounts”. The members of Chapter are also responsible for safeguarding the assets of the Cathedral and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SALISBURY CATHEDRAL COUNCIL We have audited the financial statements of Salisbury Cathedral for the year ended 31 March 2019 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Entity Only 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, Section 27 of the Cathedrals Measure 1999 (February 2015) and Financial Reporting Standard FRS 102.

Opinion on the financial statements In our opinion the financial statements:

give a true and fair view of the state of the affairs of the Cathedral at 31 March 2019 and of

the net movement in funds for the year then ended.

have been properly prepared in accordance with Financial Reporting Standard FRS 102 and

under Section 27 of the Cathedrals Measure 1999 (February 2015).

comply with the Cathedrals Administrative and Finance Association guidance note 2 -

Accounting Regulations Checklist issued June 2016.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and Cathedral in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCʼs Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the Chapter’s members use of the going concern basis of accounting in the preparation of the

financial statements is not appropriate; or

the Chapter’s members have not disclosed in the financial statements any identified material

uncertainties that may cast significant doubt about the Cathedral's ability to continue to

adopt the going concern basis of accounting for a period of at least twelve months from the

date when the financial statements are authorised for issue.

Other information The Chapter’s members are responsible for the other information. The other information comprises the information included in the Annual Report of the Chapter, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.


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Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and Cathedral and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report of the Chapter.

We have nothing to report in respect of the following matters where we are required to report to you if, in our opinion:

the information given in the Annual Report of the chapter is inconsistent in any material

respect with the financial statements; or

sufficient accounting records have not been kept; or

the financial statements are not in agreement with the accounting records and returns; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the Chapter As explained more fully in the Statement of Responsibilities of the Chapter set out on page 11, the Chapter members’ are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Chapter members are responsible for assessing the Group and Cathedral’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Chapter members either intend to liquidate the Group and Cathedral or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

This report is made solely to the Chapter's members as a body, in accordance with Section 27 of the Cathedrals Measure 1999 (February 2015). Our audit work has been undertaken so that we might state to the members those matters we are required to state to them in the 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 Chapter and the Chapter’s members as a body for our audit work, for this report, or for the opinions we have formed.

FLETCHER & PARTNERS Chartered Accountants and Statutory Auditor Crown Chambers, Bridge Street Salisbury, Wiltshire, SP1 2LZ Date:


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PRINCIPAL ACCOUNTING POLICIES Basis of accounting The accounts have been prepared under the historical cost convention, modified for the revaluation of properties and investments, and in accordance with applicable accounting standards and the Accounting and Reporting Guidelines for English Anglican Cathedrals prepared by the Association of English Cathedrals, as revised in February 2015. Properties Properties used for the Cathedral's own activities, apart from the Cathedral itself, are shown at existing use value, and investment properties are shown at open market value. Following the changes to the accounting regulations in February 2015 Chapter has elected to use the valuation as shown in the accounts as at 31st March 2015 as the deemed cost for the non- investment properties.

Depreciation is not charged on the properties used by the Cathedral because Chapter has adopted the previous revaluation dated 31st March 2015 on transition to the revised accounting regulations dated February 2015. No depreciation is charged on investment properties because their values are adjusted by means of the revaluation. Going Concern The Chapter consider that there are no material uncertainties about the Cathedral’s ability to continue as a going concern. Other tangible fixed assets Other tangible fixed assets are capitalised and depreciated over their anticipated useful economic lives. The following annual rates of depreciation are used:

Property improvements 2% - 10% straight line basis Cathedral furniture and equipment 10% straight line basis Works department equipment and vehicles 20% straight line basis Office, shop, refectory and computer equipment 20% - 33% straight line basis

Heritage assets The Chapter is responsible for the care and maintenance of the Cathedral Church and its various furniture, ornaments, vestments and vessels. They consider that owing to their incomparable nature conventional valuation approaches lack sufficient reliability and that, even if valuations could be obtained, the costs would be onerous compared with the additional benefits derived by the Cathedral and users of the accounts. As a result, no value is reported for those assets in the Cathedral’s balance sheet. The cost of associated major repairs to the Cathedral Church is reported in the Statement of Financial Activities. Further information is given in Note 10 to the accounts. Investments Investments are carried at mid-market values quoted by the respective fund managers. Realised and unrealised gains and losses in the year are shown on the Statement of Financial Activities. Income from investments is accounted for on a receivable basis. Stock Stock consists of materials held by the works and glazing departments and goods for resale held by Salisbury Cathedral Enterprises Ltd. Work in progress relates to outside contracts. These are all valued at the lower of cost and net realisable value. Allocation of Support and Governance Costs The apportionment of support and governance costs for 2018-19 has been allocated by the full time equivalent of staff in the relevant cost centres of the Cathedral. Irrecoverable VAT is included within the support costs. Governance costs include audit fees and relevant expenditure relating to specific meetings.


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Funds The funds of the Cathedral are classified according to their permitted usage as follows:

Endowment funds, whose capital cannot be spent, but the income from which may be used for either general or specific purposes

Restricted funds, whose capital and income are available for spending on specific purposes imposed by the original donor

Unrestricted funds, which are available for the general purposes of the Cathedral. These include amounts which have been designated for particular purposes by the Chapter but where the designation may be varied or removed in the future.

Incoming resources

Voluntary income and grants receivable, including donations, gifts and legacies are recognised when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Charges in the course of mission and activities for generating funds are recognised as and when the related goods or services are provided.

Property and investment income is recognised on a receivable basis.

Lease premiums The majority of investment properties are subject to long-term leases for which a premium is charged on the grant of the lease. In accordance with the provisions of the Cathedrals Measure 1999 the lease premiums, less associated costs, are credited to endowed capital on receipt. The net proceeds are therefore shown as realised gains of the endowment funds in the year in which the lease premiums are received. Third party receipts and payments and donated goods and services When a third party pays for goods or services on behalf of the Cathedral the cost is shown as both income and expenditure in the Statement of Financial Activities. Similarly, donated goods and services are valued on an arm's length basis and shown as income and either capital or revenue expenditure as appropriate. No monetary value, however, is placed on the services provided by the many Cathedral volunteers. Legacies Legacies are included as income when it becomes reasonably certain that they will be received and the amount to which the Cathedral is entitled can be reliably ascertained. Where they are for specific purposes they are credited to the corresponding restricted fund. Repairs, restoration and maintenance of the Cathedral Expenditure on Cathedral repairs is charged in the Statement of Financial Activities as it is incurred. The costs of routine maintenance and work on the major repair programme are identified separately in notes to the accounts. Pension costs Pension scheme arrangements are operated on the basis of a defined contribution pension scheme. The assets of both schemes are held independently of the Cathedral. Contributions are charged to the Statement of Financial Activities in the period for which they are payable for both schemes. Taxation No corporation tax is chargeable as the Cathedral is a charity and its subsidiary companies surrender their profits to the Cathedral under Gift Aid. Income tax recoverable on donations and investment income is added to the corresponding net income. Value added tax Under the special rules applied by HM Customs and Excise the Cathedral is able to recover some of the VAT borne on its expenditure. Irrecoverable VAT is included within the support costs of the cost heading to which it relates.


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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Note Unrestricted Restricted Endowment Total Total Funds Funds Funds 2019 2018 £000 £000 £000 £000 £000 ______ ______ ______ ______ ______

INCOME AND ENDOWMENTS FROM: 1 Donations and legacies 1,511 970 74 2,555 6,407 Grants in support of mission 4 197 - 201 499 Charges and fees arising in the 107 23 - 130 153 course of mission Trading and fundraising 1,248 - - 1,248 1,205 Investments 862 285 - 1,147 1,158 Other income 8 28 - 36 30

______ ______ ______ ______ ______ Total Income 3,740 1,503 74 5,317 9,452

______ ______ ______ ______ ______

EXPENDITURE ON: 2 ______ ______ ______ ______ ______ Raising Income 1,716 27 351 2,094 1,791 Ministry 915 645 - 1,560 1,046 Cathedral and precincts upkeep 868 514 31 1,413 1,482 Education and outreach 322 134 - 456 359 Other Expenditure 3 9 - - 9 15

______ ______ ______ ______ ______ Total expenditure 3,830 1,320 382 5,532 4,693

______ ______ ______ ______ ______

NET INCOMING/(OUTGOING) RESOURCES (90) 183 (308) (215) 4,759

OTHER RECOGNISED GAINS AND LOSSES

Investment properties:realised - - 264 264 188 Investment properties:unrealised 7 - - - - Other properties: unrealised 9 - - - - - Investments:realised - 5 999 1,004 17 Investments:unrealised 8 - 81 (202) (121) (70) Transfer Between Funds 15 - - - - -

______ ______ ______ ______ ______ Net movement in funds (90) 269 753 932 4,894 Reconciliation of Funds Brought Forward at 1st April 2018 4,970 7,392 46,217 58,579 53,685 _____ ______ ______ ______ ______

BALANCES AT 31ST MARCH 2019 4,880 7,661 46,970 59,511 58,579

______ ______ ______ ______ ______


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CONSOLIDATED BALANCE SHEET Note Unrestricted Restricted Endowment Total Total Funds Funds Funds 2019 2018 £000 £000 £000 £000 £000 ______ ______ ______ ______ ______ FIXED ASSETS Investment assets Property 7 - - 15,416 15,416 16,316 Investments 8 3,149 6,731 18,984 28,864 26,971 ______ ______ ______ ______ ______ 3,149 6,731 34,400 44,280 43,287 Non-investment assets Property 9 - - 12,458 12,458 12,489 Other tangible assets 10 70 - - 70 23 ______ ______ ______ ______ ______ Total fixed assets 3,219 6,731 46,858 56,808 55,799 CURRENT ASSETS Stock 11 145 - - 145 181 Debtors 12 564 - - 564 445 Cash at bank and in hand 1,597 930 112 2,639 2,652 ______ ____ ______ ______ ______ 2,306 930 112 3,348 3,278 CREDITORS: Amounts falling due within one year 13 (626) - - (626) (474) ______ ______ ______ ______ ______ NET CURRENT ASSETS 1,680 930 112 2,722 2,804 ______ ______ ______ ______ ______ CREDITORS: Amounts falling

due after one year 14 (19) - - (19) (24)

______ ______ ______ ______ ______ NET ASSETS 4,880 7,661 46,970 59,511 58,579 ______ ______ ______ ______ ______ FUNDS Endowment funds 15 - - 46,970 46,970 46,217 Restricted funds 16 - 7,661 - 7,661 7.392 Designated funds 17 1,338 - - 1,338 1,370 General funds 17 3,542 - - 3,542 3,600 ______ ______ ______ ______ ______ 4,880 7,661 46,970 59,511 58,579 ______ ______ ______ ______ ______ Signed on behalf of Chapter: The Very Reverend Nicholas Papadopulos Jane Barker Dean of Salisbury Chairman, Finance Advisory Group Approved by Chapter: 26th July 2019


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CATHEDRAL BALANCE SHEET Unrestricted Restricted Endowment Total Total Funds Funds Funds 2019 2018 £000 £000 £000 £000 £000 ______ ______ ______ ______ ______ FIXED ASSETS Investment assets Property - - 14,406 14,406 15,306 Other investments 3,149 6,578 17,062 26,789 24,974 ______ ______ ______ ______ ______ 3,149 6,578 31,468 41,195 40,280 Non-investment assets Property - - 12,458 12,458 12,489 Other tangible assets 65 - - 65 13 ______ ______ ______ ______ ______ Total fixed assets 3,214 6,578 43,926 53,718 52,782 CURRENT ASSETS Stock 6 - - 6 20 Debtors 985 - - 985 975 Cash at bank and in hand 1,215 446 85 1,746 1,706 ______ ______ ______ ______ ______ 2,206 446 85 2,737 2,701 CREDITORS: Amounts falling due within one year (521) - - (521) (379) ______ ______ ______ ______ ______ NET CURRENT ASSETS 1,685 446 85 2,216 2,322 ______ ______ ______ ______ ______ CREDITORS: Amounts falling

due after one year (19) - - (19) (24)

______ ______ ______ ______ ______ NET ASSETS 4,880 7,024 44,011 55,915 55,080 ______ ______ ______ ______ ______ FUNDS Endowment funds - - 44,011 44,011 43,322 Restricted funds - 7,024 - 7,024 6,788 Designated funds 1,338 - - 1,338 1,370 General funds 3,542 - - 3,542 3,600 ______ ______ ______ ______ ______ 4,880 7,024 44,011 55,915 55,080 ______ ______ ______ ______ ______ Signed on behalf of Chapter: The Very Reverend Nicholas Papadopulos Jane Barker Dean of Salisbury Chairman, Finance Advisory Group Approved by Chapter: 26th July 2019


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CONSOLIDATED CASH FLOW STATEMENT Note 2019 2019 2018 2018 £000 £000 £000 £000 _____________________ _______________________ Net cash flow from operating activities 18 (787) 4,080 Returns on investments Rents received net of expenses (59) 91 Interest and dividends received 752 756 ______ ______ 693 847 ______ ______ (94) 4,927 Capital expenditure and financial investment Purchase of investments (18,537) (4,705) Sales of investments 18,592 430 Additions to non investment property - - Sales of investment properties 1,164 505 Purchase of plant and equipment (73) (16) Loan repaid - - ______ ______ 1,146 (3.786) ______ ______ Increase /(Decrease) in cash 18 1,052 1,141 ______ ______


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NOTES TO THE CONSOLIDATED ACCOUNTS Unrestricted Restricted Endowment Total Total Funds Funds Funds 2019 2018 £000 £000 £000 £000 £000 1. INCOMING RESOURCES Donations and legacies Congregational collections 239 - - 239 231 Visitors 1,173 - - 1,173 1,340 Other donations 95 861 - 956 426 Friends of the Cathedral - 109 74 183 97 Ivor Read Charity - - - - 75 Ivor Read Charity Legacy - - - - 4,148 Legacies 4 - - 4 90 ______ ______ ______ ______ ______ 1,511 970 74 2,555 6,407 ______ ______ ______ ______ ______ Grants in support of mission Church Commissioners - 148 - 148 144 Heritage Lottery Fund - 49 - 49 37 Other grants 4 - - 4 318 ______ ______ ______ ______ ______ 4 197 - 201 499 ______ ______ ______ ______ ______ Charges and fees arising in the course of mission Facilities and other fees 87 23 - 110 124 Education centre 20 - - 20 29 ______ ______ ______ ______ ______ 107 23 - 130 153 ______ ______ ______ ______ ______ Trading and fundraising Charges to visitors 159 - - 159 164 Shop, refectory and car park 822 - - 822 872 Masonry and glazing contracts 267 - - 267 169 ______ ______ ______ ______ ______ 1,248 - - 1,248 1,205 ______ ______ ______ ______ ______ Investments Property 295 52 - 347 371 Investments 534 213 - 747 745 Interest on short-term deposits 33 20 53 42 ______ ______ ______ ______ ______ 862 285 - 1,147 1,158 ______ ______ ______ ______ ______ Other income Other income 8 28 - 36 30 ______ ______ ______ ______ ______ 8 28 - 36 30 ______ ______ ______ ______ ______ Total incoming resources 3,740 1,503 74 5,317 9,452 ______ ______ ______ ______ ______


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) For Comparative Information Unrestricted Restricted Endowment Total Funds Funds Funds 2018 £000 £000 £000 £000 1. INCOMING RESOURCES Donations and Legacies Congregational collections 231 - - 231 Visitors 1,340 - - 1,340 Other donations 74 352 - 426 Friends of the Cathedral - 23 74 97 Ivor Read Charity - 75 - 75 Ivor Read Charity Legacy - 4,148 - 4,148 Legacies 2 88 - 90 ______ ______ ______ ______ 1,647 4,686 74 6,407 ______ ______ ______ ______ Grants in support of mission Church Commissioners - 144 - 144 Heritage Lottery Fund - 37 - 37 Other grants 10 308 - 318 ______ ______ ______ ______ 10 489 - 499 ______ ______ ______ ______ Charges and fees arising in the course of mission Facilities and other fees 105 19 - 124 Education centre 29 - - 29 ______ ______ ______ ______ 134 19 - 153 ______ ______ ______ ______ Trading and fundraising Charges to visitors 164 - - 164 Shop, refectory and car park 872 - - 872 Masonry and glazing contracts 169 - - 169 ______ ______ ______ ______ 1,205 - - 1,205 ______ ______ ______ ______ Investments Property 316 55 - 371 Investments 567 178 - 745 Interest on short-term deposits 34 8 - 42 ______ ______ ______ ______ 917 241 - 1,158 ______ ______ ______ ______ Other income Other income 6 24 - 30 ______ ______ ______ ______ 6 24 - 30 ______ ______ ______ ______ Total incoming resources 3,919 5,459 74 9,452 ______ ______ ______ ______


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) Unrestricted Restricted Endowment Total Total Funds Funds Funds 2019 2018 £000 £000 £000 £000 £000 2. Raising Income (Cost of Generating Funds) Cost of facilities for visitors 362 8 - 370 320 General marketing costs 97 - - 97 97 Appeals and fundraising expenses 103 2 - 105 91 Shop, refectory and car park 577 - - 577 597 Masonry and glazing contracts 252 - - 252 165 Property expenses 158 - 248 406 279 Investment management costs 2 15 103 120 119 Support costs 165 2 - 167 123 ______ ______ ______ ______ ______ 1,716 27 351 2,094 1,791 ______ ______ ______ ______ ______ 3. Ministry Ministry Clergy stipends and expenses 67 152 - 219 163 Clergy housing costs 31 - - 31 22 Clergy support costs 36 7 - 43 38 Services and music 570 486 - 1,056 660 Support costs 211 - - 211 163 ______ ______ ______ ______ ______ 915 645 - 1,560 1,046 ______ ______ ______ ______ ______ Cathedral and precincts upkeep Major repairs and restoration - 350 - 350 518 Maintenance and interior upkeep 476 153 - 629 559 Cathedral insurance 76 1 - 77 71 Little Paradise Development - - 31 31 61 Precincts security and garden upkeep 72 3 - 75 84 Support costs 244 7 - 251 189 ______ ______ ______ ______ ______ 868 514 31 1,413 1,482 ______ ______ ______ ______ ______ Education and outreach Educational activities 210 63 - 273 218 Archives and library 45 35 - 80 51 HLF Funded Project - 27 - 27 17 Charitable and other giving 27 9 - 36 37 Support costs 40 - - 40 36 ______ ______ ______ ______ ______ 322 134 - 456 359 ______ ______ ______ ______ ______ Other expenditure Strategic planning and restructuring 9 - - 9 15 ______ ______ ______ ______ ______ 9 - - 9 15 ______ ______ ______ ______ ______ Total expenditure 3,830 1,320 382 5,532 4,693 ______ ______ ______ ______ ______


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) For Comparative Information Unrestricted Restricted Endowment Total Funds Funds Funds 2018 £000 £000 £000 £000 2. Raising Income (Cost of Generating Funds) Cost of facilities for visitors 320 - - 320 General marketing costs 97 - - 97 Appeals and fundraising expenses 89 2 - 91 Shop, refectory and car park 597 - - 597 Masonry and glazing contracts 165 - - 165 Property expenses 185 - 94 279 Investment management costs 8 - 111 119 Support costs 122 1 - 123 ______ ______ ______ ______ 1,582 3 205 1,791 ______ ______ ______ ______ 3. Ministry Ministry Clergy stipends and expenses 16 147 - 163 Clergy housing costs 22 - - 22 Clergy support costs 38 - - 38 Services and music 470 190 - 660 Support costs 163 - - 163 ______ ______ ______ ______ 709 337 - 1,046 ______ ______ ______ ______ Cathedral and precincts upkeep Major repairs and restoration - 518 - 518 Maintenance and interior upkeep 508 51 - 559 Cathedral insurance 70 1 - 71 Little Paradise Development - - 61 61 Precincts security and garden upkeep 81 3 - 84 Support costs 189 - - 189 ______ ______ ______ ______ 848 573 61 1,482 ______ ______ ______ ______ Education and outreach Educational activities 196 22 - 218 Archives and library 51 - - 51 HLF Funded Project - 17 - 17 Charitable and other giving 28 9 - 37 Support costs 36 - - 36 ______ ______ ______ ______ 311 48 - 359 ______ ______ ______ ______ Other Expenditure Strategic planning and restructuring 15 - - 15 _____ ______ ______ ______ 15 - - 15 _____ ______ ______ ______ Total expenditure 3,466 961 266 4,693 _____ ______ ______ ______


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) Direct Support Total Cost Cost 2019 £000 £000 £000 4. APPORTIONMENT OF SUPPORT COSTS Raising funds 1,927 167 2,094 Ministry 1,349 211 1,560 Cathedral and precincts upkeep 1,162 251 1,413 Education and outreach 416 40 456 Other expenditure 9 - 9 ________ ________ ________ 4,863 669 5,532 ________ ________ ________ The apportionment of support has been allocated by the full time equivalent of staff in the relevant cost centres of the Cathedral. 5. STAFF NUMBERS AND COSTS The average weekly number of paid staff of all the entities included in the consolidated accounts was as follows: 2019 total 2018 total No’s FTE No’s FTE Cathedral and precincts 39 27 38 26 Visitors and education 35 19 38 19 Works and glazing departments 22 22 22 21 Administration 18 14 19 15 __ __ ___ __ 114 82 117 81 __ __ ___ __ The total staff costs of these persons were as follows: 2019 2018 £000 £000 Wages, salaries and stipends 2,225 2,039 166 Employer's national insurance 170 159 Employer’s pension contributions 104 85 _________ _________ 2,499 2,283 _________ _________ One member (2018:1) of staff received emoluments (excluding employer's pension contributions) of more than £60,000 during the year ended 31st March 2019. The Dean and the three Canons Residentiary were paid stipends (including the related pension provision) in accordance with scales set annually by the Church Commissioners, the Archbishop's Council and the Church of England Pensions Board. The stipends of the Dean and two Canons Residentiary are funded by the Church Commissioners. Chapter was pleased to be able to support Canon T Clammer as he transitioned to the next stage of his ministry with a settlement agreement in line with legal advice. The amounts paid including employer national insurance during the year ended 31st March 2019 were as follows: Pension Stipend Contribution £ £ The Very Reverend Nick Papadopulos (Dean) (appointed September 2018) 12,507 3,677 Canon E Probert (Chancellor and Acting Dean July 2017 – September 2018) 36,745 9,460 Canon E Probert (Acting Precentor November 2018) Canon T Clammer (Precentor) (resigned January 2019) 73,414 19,107 Canon R Titley (Treasurer) 30,923 9,425 These pension contributions are paid to the Church of England Funded Pensions Scheme. Full details of the Scheme are shown in note 19.


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 6. AUDITORS' REMUNERATION The total remuneration of the auditors of all the entities included in the consolidated accounts was: 2019 2018 £000 £000 Audit services 15 15 ______ ______ 7. INVESTMENT PROPERTIES General Choristers' Endowment Endowment Fund Fund Total £000 £000 £000 Valuation at 1st April 2018 15,306 1,010 16,316 Additions - - - Disposals (900) - (900) Transfers from /(to) non-investment properties - - - Revaluation - - - ______ ______ ______ Valuation at 31st March 2019 14,406 1,010 15,416 ______ ______ ______ The properties which are currently held for investment purposes include 23 houses and 2 offices within The Close. All are held freehold and the majority are let on long tenant-repairing leases. The General Endowment Fund properties were valued at 31st March 2016 by Strutt & Parker LLP, Chartered Surveyors, on the basis of open market value. The Choristers Endowment Fund property, comprising the Cathedral School boarding house and Wren Hall was valued by Strutt & Parker at 31st March 2016.

8. INVESTMENTS Unrestricted Restricted Endowment Total Funds Funds Funds £000 £000 £000 £000 MARKET VALUE At 1st April 2018 3,140 6,598 17,233 26.971 Additions - 115 18,422 18,537 Disposals - (115) (17,473) (17,588) Increase/(decrease) in cash 9 52 1,004 1,065 Revaluation - 81 (202) (121) ______ ______ ______ ______ At 31st March 2019 3,149 6,731 18,984 28,864 ______ ______ ______ ______ COST At 31st March 2019 3,149 6,388 18,782 28,319 At 31st March 2018 3,114 6,574 12,232 21,920 The market values comprise: Collective Cash investments on deposit Total £000 £000 £000 At 31st March 2019 24,474 4,390 28,864 At 31st March 2018 23,646 3,325 26,971 During the year the Cathedral sold the majority of the investments managed by Schroders and transferred the proceeds to CCLA.


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 9. NON-INVESTMENT PROPERTIES Little Shop and Staff Paradise refectory Offices Houses Total £000 £000 £000 £000 £000 COST OR VALUATION Valuation at 1st April 2018 1,391 877 1,020 10,202 13,490 Additions - - - - - Disposals - - - - - Transfers from /(to) investment properties - - - - - Revaluation - - - - - ______ ______ ______ ______ ______ Valuation at 31st March 2019 1,391 877 1,020 10,202 13,490 ______ ______ ______ ______ ______ DEPRECIATION At 1st April 2018 124 877 - - 1,001 Charge for the year 31 - - - 31 ______ ______ ______ ______ ______ At 31st March 2019 155 877 - - 1,032 ______ ______ ______ ______ ______ NET BOOK VALUE At 31st March 2019 1,236 - 1,020 10,202 12,458 At 31st March 2018 1,267 - 1,020 10,202 12,489 The offices and staff houses were valued at 31st March 2010 by Strutt & Parker LLP, Chartered Surveyors, on the basis of existing use value. The Chapter have obtained advice from Strutt & Parker on market conditions and reflected this as a revaluation in the accounts year ended 31st March 2015. Following the changes to the accounting regulations as at February 2015, Chapter has elected to use the

valuation as at 31 March 2015 as the deemed cost on transition to the new accounting regulations and

therefore are no longer required to revalue the non – investment properties in the future.

10. OTHER TANGIBLE FIXED ASSETS Workshop Shop and Building equipment Office refectory Cathedral improvements and vehicles equipment equipment inventory Total £000 £000 £000 £000 £000 £000 COST At 1st April 2018 102 209 393 64 276 1,044 Additions - 1 72 - - 73 - - Disposals - - - - - - - - - ______ ______ ______ ______ ______ ______ At 31st March 2019 102 210 465 64 276 1,117 ______ ______ ______ ______ ______ ______ DEPRECIATION At 1st April 2018 102 198 381 64 276 1,021 Charge for the year - 5 21 - - 26 On disposals - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ At 31st March 2019 102 203 402 64 276 1,047 ______ ______ ______ ______ ______ ______ NET BOOK VALUE At 31st March 2019 - 7 63 - - 70 At 31st March 2018 - 11 12 - - 23


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 10. OTHER TANGIBLE FIXED ASSETS (continued) HERITAGE ASSETS NOT RECOGNISED IN THE BALANCE SHEET Construction of the Cathedral Church started in 1220 and it was dedicated in 1258. The spire and tower were added in c1330. The current Constitution of the Cathedral, drawn up under the terms of the Cathedrals Measure 1999, states that it is the responsibility of the Chapter to ensure that necessary repairs and maintenance in respect of the fabric of the Cathedral and its contents and monuments are carried out. The current major repair programme started in the 1980s and now approaching completion, is the latest in a series of repair programmes undertaken over the centuries. As a result of continuing repair and conservation of the Cathedral it has been possible for Christian worship to be maintained in it since 1258. The Cathedrals Fabric Commission for England (CFCE) was established by the Care of Cathedrals Measure 1990 to advise the administrative body of a Cathedral church on the care, conservation, repair or development of the Cathedral church, and also to consider and determine any application made to it by the Chapter. Under the same Measure all Cathedrals appoint an architect to carry out certain statutory duties on behalf of the Chapter, in particular making an annual and quinquennial report on the condition of the fabric. CFCE require that an inventory of the Cathedral’s furniture, ornaments, vestments and vessels be maintained. This inventory contains no cost or valuation information. Particular items of note recorded are the Cathedral’s copy of the original 1215 Magna Carta; the oldest working mediaeval clock in the world; a glass prism by Lawrence Whistler; and a font designed by William Pye and installed in 2008, which was funded by donations. Acquisitions of heritage assets are made through purchase and donation and are intended to complement existing collections or enhance the liturgical life of the Cathedral. 2019 2018 £000 £000 11. STOCK Raw materials 27 40 Goods for resale 96 113 Work in progress 22 28 ______ ______ 145 181 ______ ______ 12. DEBTORS Trade debtors 191 160 Income tax recoverable 126 40 VAT recoverable 4 - Investment income receivable 179 184 Grant receivable - - Other debtors 3 9 Prepayments 61 52 ______ ______ 564 445 ______ ______


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 2019 2018 13. CREDITORS: amounts falling due within one year £000 £000 Trade creditors 276 161 Other creditors 32 29 VAT payable - 2 Amounts due to the Friends of Salisbury Cathedral 15 15 PAYE and NIC 44 44 Accruals 172 125 Deferred income 87 98 _______ _______ 626 474 _______ _______ 14. CREDITORS: amounts falling due after one year Pension Provision 19 24 - - (40) (50) _______ _______ 19 24 _______ _______ 15. ENDOWMENT FUNDS Balance Transfers, gains Balance 1st April 2018 Income Expenditure and losses 31stMarch 2019 £000 £000 £000 £000 £000 Endowed capital 43,322 74 (378) 993 44,011 Prebendal Fund 39 - - 2 41 Choristers' Endowment Fund 2,450 - (3) 45 2,492 Choral Foundation 406 - (1) 21 426 ______ ______ ______ ______ ______ 46,217 74 (382) 1,061 46,970 ______ ______ ______ ______ ______ 16. RESTRICTED FUNDS Balance Transfers, gains Balance 1st April 2018 Income Expenditure and losses 31stMarch 2019 £000 £000 £000 £000 £000 Specific funds: General fabric legacy fund 2,275 338 (350) - 2,263 Specific legacy fund 354 384 (391) 2 349 Willis organ fund 138 454 (281) - 311 Ivor Read Fabric legacy fund 4,020 133 (128) 75 4,100 - Prebendal fund 97 4 (3) 6 104 Choristers' Endowment 231 112 (82) - 261 Choral Foundation 276 78 (85) 3 272 Magna Carta Trust - - - - - Specific grants 1 - - - 1 ______ ______ ______ ______ ______ 7,392 1,503 (1,320) 86 7,661


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 16. RESTRICTED FUNDS (continued) Specific funds consist of unexpended donations and legacies for specific purposes, as follows: General fabric legacy fund: the repair and maintenance of the fabric of the Cathedral Specific legacy fund: various specific purposes including maintenance of the Cathedral and Close Willis organ fund: maintenance of the Willis organ in the Cathedral Prebendal fund: to meet expenditure incurred by non-residentiary Canons and Lay Canons Choristers' Endowment: to fund the fees of boy choristers Choral Foundation: to promote and enhance church music in the Cathedral Ivor Read Legacy Fund: the repair and maintenance of the fabric of the Cathedral 17. UNRESTRICTED FUNDS Balance Surplus/ Gains/ Balance 1st April 2018 (deficit) (losses) Transfers 31stMarch 2019 £00 £000 £000 £000 £000 Designated funds: Cathedral interior development fund 66 - - - 66 Property repair reserve 90 - - 20 110 General legacy fund 213 2 - - 215 Organ fund 550 - - (70) 480 Safer Environment Fund 90 - - - 90 Organisation Development Fund 105 (20) - 40 125 Visitor Experience Fund 220 (44) - 40 216 Community & Outreach Projects 10 - - - 10 Library fund 26 - - - 26 ______ ______ ______ ______ ______ 1,370 (62) - 30 1,338 General funds 3,600 (28) - (30) 3,542 ______ ______ ______ ______ ______ 4,970 (90) - - 4,880 ______ ______ ______ ______ ______ Designated funds consist of income that has been designated for the following purposes: Cathedral interior development fund: for improvements to the interior of the Cathedral Property repair reserve: for repairs to the secular properties General legacy fund: for identifying the capital element of legacies for general purposes Library fund: for the purchase of books for the Cathedral library Organ fund: for the refurbishment of the Willis organ in 2019 Safer Environment fund: for improvements to CCTV. Organisation Development fund: for Continued improvements Visitor Experience fund: for improvements to the visitor environment Community & Outreach Projects: for Cathedral’s outreach General fund: the general accumulated fund of the Cathedral.


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 18. NOTES TO THE CASH FLOW STATEMENT Reconciliation of net changes in resources to operating cash flow 2019 2018 £000 £000 Net change in resources before revaluations (215) 4,759 Depreciation 57 48 Rents received (347) (371) Investment property expenses 406 279 Interest and dividends received (747) (787) Change in stocks 36 (3) Change in debtors (124) 186 Change in creditors 147 (31) __________ __________ Operating cash (outflow) / inflow (787) 4,080 __________ __________ Reconciliation of net cash flow to movements in net funds (Decrease) / Increase in cash 1,052 1,141 __________ __________ Change in net funds 1,052 1,141 Net funds at 1st April 2018 5,977 4,836 __________ __________ Net funds at 31st March 2019 7,029 5,977 __________ __________ Analysis of net funds Balance Net cash Balance 1st April 2018 flow 31stMarch 2019 £000 £000 £000 Cash at bank and in hand: Unrestricted funds 1,679 (82) 1,597 Restricted funds 794 136 930 Endowment funds 179 (67) 112 ______ ______ ______ 2,652 (13) 2,639 Investment deposits: Unrestricted funds 985 9 994 Restricted funds 937 52 989 Endowment funds 1,403 1,004 2,407 ______ ______ ______ 5,977 1,052 7,029 ______ ______ ______


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 19. COMMITMENTS Capital expenditure There were no capital expenditure commitments at 31st March 2019 (2018: nil). Cathedral repair programme The Cathedral Church is currently undergoing a programme of major repairs which is being funded in part by the Cathedral Trust, other grant-making charities, and donations. The Cathedral's share of these works is funded by the general fabric legacy fund, the reserves of which are shown in note 16. FRS17 pension disclosure Salisbury Cathedral participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This is administered by the Church of England Pensions

Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body and this means contributions are accounted for as if the Scheme were a defined contribution scheme. A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2015. A valuation at 31 December 2018 is currently under way, but the results are yet to be determined. The 2015 valuation revealed a deficit of £236m, based on assets of £1,308m and a funding target of £1,544m Following the 31 December 2015 valuation, a recovery plan was put in place until 31 December 2025 with a contribution rate of 14.1% as a percentage of pensionable stipend. This has been calculated as a provision of £19k shown under note 14. Defined Contribution Pension Scheme. Employees of Salisbury Cathedral may enrol in a group personal pension scheme with AVIVA, once enrolled the Cathedral pays the employer’s contribution in to the same scheme. The assets are held separately from the Cathedral.


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 20. SUBSIDIARY COMPANIES The consolidated accounts include the income, expenditure and net assets of the following 2 companies which are wholly owned by the Cathedral. In both cases figures relate to the year ended 31st March 2019. Salisbury Cathedral Salisbury Cathedral Works Department Ltd Enterprises Ltd £000 £000 Turnover 112 1,009 Expenditure 61 738 ________ ________ Net profit before Gift Aid donations and distributions 51 271 Salisbury Cathedral 51 256 The Friends of Salisbury Cathedral - 15 ________ ________ Retained profit/(loss) - - ________ ________ £ £ Gross assets at 31.3.19 24 387 Net assets/(liabilities) at 31.3.19 - - Salisbury Cathedral Works Department Ltd is the trading arm of the Cathedral works department. It carries out outside contracts, principally repairs to historic buildings, on behalf of the works department. Salisbury Cathedral Enterprises Ltd operates the Cathedral shop and the car park, and receives commission from sales in the Cathedral Refectory restaurant which is operated by an independent catering company. It also carries out outside contracts, principally repairs to historic buildings, by the glazing department. 21. CONNECTED CHARITIES For the benefit of the Cathedral There are 3 charities whose objects are primarily or partially to support the work of the Cathedral but which are not controlled by the Chapter and whose accounts are therefore not included in these consolidated accounts. Summaries of their most recent accounts, insofar as they are for the benefit of the Cathedral, are as follows: Salisbury Cathedral The Friends of Girl Choristers’ Trust Salisbury Cathedral Fund £000 £000 £000 Year end: 31.3.19 31.3.19 31.8.18 Gross income 365 408 411 Net income before grants 344 320 195 Grants to or for the Cathedral - 189 92 Gross assets 841 877 2,148 Net assets 841 851 2,148


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NOTES TO THE CONSOLIDATED ACCOUNTS (continued) 21. CONNECTED CHARITIES (continued) The grants to the Cathedral shown above do not correspond exactly to the income shown in the Statement of Financial Activities due to timing differences in the recognition of grants. Salisbury Cathedral Trust is an independent charity whose objects are the furtherance of religion and education, in particular by giving priority to the repair and maintenance of Salisbury Cathedral. During the year, 2 of its 4 trustees were members of Chapter. The Friends of Salisbury Cathedral is a members' association whose object is to enhance the fabric, contents, work and worship of the Cathedral. It is an independent charity and is governed by its Executive Council which includes a member of Chapter. The Salisbury Cathedral Girl Choristers' Fund is an independent charity whose objects are to pay bursaries for girl choristers at Salisbury Cathedral. During the year 2 of its 7 trustees were members of Chapter. The grants shown were paid directly to the Cathedral School and are not shown in the Cathedral's accounts. Not for the benefit of the Cathedral The Chapter appoints the Governors of Salisbury Cathedral School, which is a company limited by guarantee of which the Cathedral as a corporation aggregate is the sole member. During the year the Cathedral received rent from the School of £122k under its lease of the School's premises and the Choristers' Endowment Fund received rent of £39k from the School under its lease of 57A The Close which belongs to that Fund. The Cathedral, the Choristers' Endowment Fund and the Choral Foundation paid £131k to the School in respect of choristers' bursaries, £48k for the choir tour and the Cathedral paid a further £62k to the School to pay expenses in relation to the choristers. These amounts are included in the cost of services and music. 22. OTHER RELATED PARTY TRANSACTIONS The Dean and the three Canons Residentiary were reimbursed with expenses totalling £6,062 (2018: £7,071) and 1 other Chapter member was reimbursed with expenses totalling £773 (2018: £705).

report and accounts year ended 31st march 2019 · 2019. 10. 11. · salisbury cathedral report and...

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