ROCHESTER CATHEDRAL
Nurturing the radical hope
of human flourishing
in Jesus Christ
ANNUAL REPORT
Statutory Accounts – Part 2
2010/11
Rochester Cathedral Annual Report and Statutory Accounts
– Part 2
Contents Page
ROCHESTER CATHEDRAL ANNUAL REPORT AND STATUTORY ACCOUNTS – PART 2 ................................ 2
PART 2 ......................................................................................................................................................................... 3
6. LEGAL AND ADMINISTRATIVE INFORMATION.............................................................................................................3
6.1 Legal name of the Cathedral ..........................................................................................................3
6.2 Chapter Office .........................................................................................................................................3
6.3 Chapter .........................................................................................................................................................3
6.4 Other key appointments......................................................................................................................3
6.5 Finance Committee..................................................................................................................................5
6.6 Fabric Advisory Committee ..............................................................................................................5
6.7 Auditors .......................................................................................................................................................5
6.8 Banker and other professional advisers................................................................................5
7. STRUCTURE, GOVERNANCE AND MANAGEMENT ............................................................................................................7
7.1 Governing Statute..................................................................................................................................7
7.2 Relationship with the Diocese .....................................................................................................7
7.3 Corporate body .........................................................................................................................................7
7.4 Finance Committee..................................................................................................................................8
7.5 Other key groups ....................................................................................................................................8
7.6 Chapter appointments and training ...........................................................................................8
7.7 Chapter responsibilities .................................................................................................................8
7.8 Clergy and senior staff changes ................................................................................................9
7.9 Related organisations ........................................................................................................................9
7.10 Investment Powers .............................................................................................................................9
7.11 Public Benefit ....................................................................................................................................9
7.12 Risk analysis ....................................................................................................................................10
7.13 Staffing and Volunteers ............................................................................................................10
8. FINANCIAL REVIEW .........................................................................................................................................................10
8.1 Major sources of finance ................................................................................................................................10
8.2 Reserves Policy ................................................................................................................................................12
8.3 Investment Policy ............................................................................................................................................12
8.4 Investment Performance ................................................................................................................................13
8.5 Maintenance Plan for the Cathedral and its Precincts ...................................................................................14
8.6 Commentary on the 2010/11 results. .............................................................................................................14
9. STATUTORY ACCOUNTS ...................................................................................................................................................19
Statutory Accounts
- page 2
Part 2
Part 2 of the Annual Report contains all the information the Cathedral is
required to disclose by statute and regulation. Part 1 of the report
describes the wide range of activities undertaken by the Cathedral over
the year, and measures them against our present and future plans.
6. Legal and administrative information
6.1 Legal name of the Cathedral
The legal name of the Cathedral is:
Cathedral
and the Blessed Virgin Mary
Name commonly used:
Rochester Cathedral
Church
of
Christ
6.2 Chapter Office
Garth House
The Precinct
Rochester
ME1 1SX
Telephone: 01634 843366
Email: administrator@rochestercathedral.org
6.3 Chapter
Members of Chapter during the year to 31 March 2011 were as follows:
Dean:
The Very Revd Adrian Newman – 2005
Canon Precentor:
The Revd Canon Neil Thompson (Commissioners’ Canon) 2008
Canon Pastor:
The Revd Dr Canon Philip Hesketh (Commissioners'
Canon) - 2005
Archdeacon of Rochester
The Ven Simon Burton-Jones (20% Cathedral and
80% Diocese) - 2010
Canon Missioner:
The Revd Canon Jean Kerr (20% Cathedral and 80%
Diocese) - 2005
Bishop’s Appointee:
Ms Catherine Staziker – 2004 - 2010
Bishop’s Appointee: Mr Paul Hudson - 2010
Bishop’s Appointee: Professor Vaughan Grylls - 2006
Bishop’s Appointee:
Dr Jane Broadbent - 2008
6.4
Other key appointments
Administrator
Appointed 2006
Director of Operations
Dr Edwina E Bell
Director of Music
Appointed 2008
Mr Scott Farrell
Surveyor to the fabric
Mr Ian Stewart
Statutory Accounts
- page 3
Appointed 2000
Archaeologist
Appointed 2006
Messrs Carden & Godfrey
33 Clerkenwell Close, London
EC1R 0AU
Mr Graham Keevill
Keevill Heritage Consultancy
85 Kynaston Road, Didcot, Oxon
Statutory Accounts
- page 4
OX11 8HA
6.5 Finance Committee
External members Mr Richard Webb – 2005 (Chair from 2007)
Mr Graeme King – 2000 - 2011
Mr John Sands – 2008
Mr Andrew Webster - 2010
Internal members
The Very Revd Adrian Newman
The Revd Dr Canon Philip Hesketh
Mr Paul Hudson (from December 2010)
Ms Catherine Staziker (until April 2010)
Dr Edwina Bell
Mr Jeremy Bowden
6.6 Fabric Advisory Committee
Appointed by CFCE
Julian Limentani (Chair)
Dr John Physick
Mr Allan Brodie
Mr David Baker
Appointed by Chapter Mrs Annaliese Arnold
Mrs Heather Newton
Mrs Marie-Louise Sauerberg
Mrs Margaret Davies
Secretary
Mrs Sue Malthouse
The Dean, Director of Operations and the Head Verger attend all FAC
meetings.
All members of Chapter are invited to attend FAC meetings
when they are able.
The Cathedral Archaeologist and Surveyor to the
Fabric also attend all FAC meetings.
6.7 Auditors
The Cathedral auditors, appointed in 2007, are haysmacintyre.
haysmacintyre
Fairfax House
15 Fulwood Place
London WC1V 6AY
6.8
Banker and other professional advisers
Banker
Lloyds TSB Bank plc
142-146 High Street
Chatham, Kent ME4 4DQ
Solicitors
Winch & Winch
New Road Avenue
Chatham, Kent ME4 6AR
Cripps Harries Hall
Statutory Accounts
- page 5
Wallside House
12 Mount Ephraim Road
Tunbridge Wells, Kent, TN1 1EG
Investment Manager Quilter
St Helen’s
1 Undershaft
London EC3A 8BB
Estate Advisor
Smiths Gore
Stuart House
City Road
Peterborough
PE1 1QF
Surveyor (general) John Daffarn
J.A. Warner & Partners
14 High Street
Rochester
Kent ME1 1PU
Rent Advisors
Commercial
Residential
Harrisons
Oasis House
Ambley Green
Gillingham Business Park
Kent ME8 0NJ
Kent Residential Lettings
151 New Rd
Chatham
Kent ME4 4PT
Statutory Accounts
- page 6
7. Structure, governance and management
7.1 Governing Statute
The Cathedral is governed by the Rochester Cathedral Constitution and Statutes
dated 8 September 2000, updated in December 2009.
7.2 Relationship with the Diocese
The Diocesan Bishop, the Rt Revd James Langstaff was appointed during the year.
The Suffragan Bishop of Tonbridge is the Rt Revd Dr Brian Castle
The Cathedral is the formal ‘seat’ of the Bishop of Rochester, and he is the
official Visitor. The Bishop is a valued friend and advisor to the Cathedral,
which in turn seeks to support the Bishop’s work of leading the Diocese in
mission and ministry.
The Cathedral is the mother church of the Diocese and a centre of worship and
mission within and beyond the Diocese.
It is also a venue for civic events,
concerts and graduation ceremonies.
7.3 Corporate body
The members of the Chapter, Council, and College of Canons form the corporate
body of the Cathedral.
The Chapter
The Chapter consists of the Dean, 4 Residentiary Canons (these are the on-site
clergy of whom 2 are full-time, and 2 are Diocesan appointments offering 20% of
their time to the Cathedral) and 3 non-residentiary members recruited for their
skills and expertise in specific areas of the Cathedral’s life.
It is
responsible for leadership, policy, strategy and vision.
Residentiary members of Chapter are responsible for different portfolios within
the Cathedral’s life – mission and social responsibility, pastoral care and
spiritual development, education and visits, liturgy and music and patronage.
These departments are supported by a range of committees and teams, and a
Director of Operations with overall responsibility for cathedral support
services and resources.
The Cathedral Council
The Council is an advisory and consultative body, established to support the
work of the Chapter and to ensure accountability to the wider community and
Diocese.
It provides a sounding board and guidance for Chapter as well as
offering an informal ‘watchdog’ role to ensure that the Cathedral fulfils its
legal responsibilities. It also has a formal executive role if any amendments
to the Cathedral’s Constitution and Statutes should be proposed.
The College of Canons
The College consists of senior clergy and lay members from across the Diocese,
appointed
by
the
Bishop,
along
with
a
number
of
ecumenical
canons
(representatives from other denominations).
Its role is to ensure that the
Cathedral is open to informed opinions, observations and comment from churches
within and beyond the Diocese.
Statutory Accounts
- page 7
7.4 Finance Committee
This committee is responsible for advising Chapter in connection
responsibilities in the field of financial and investment management.
with
its
7.5 Other key groups
In addition to the corporate body there are two other key groups of people:
The Cathedral Forum
This is a quarterly meeting open to all members of the Cathedral’s congregation
and community. It has no statutory powers but allows for open discussion of any
issue of interest within the life of the Cathedral.
The Fabric Advisory Committee
This committee is responsible for ensuring that any work to the fabric of the
Cathedral is done with proper regard to due and legal process. It includes the
Surveyor to the Fabric, the consultant Archaeologist, and other experts in the
conservation and repair of historic buildings.
7.6 Chapter appointments and training
The Dean and two Canons (Canon Precentor and Canon Pastor, called Commissioners’
Canons) are appointed by the Crown.
The other two Residentiary Canons (Archdeacon and Canon Missioner) are diocesan
appointments.
The non-residentiary members of Chapter are appointed by the Bishop, usually on
the recommendation of the Dean and Chapter.
New members of Chapter are provided with key documents such as the Constitution
& Statutes and links to the Cathedrals Measure 1999. Informal discussions are
used to brief them on their role and to help them understand the different
aspects of the Cathedral’s work.
Where possible external training courses
provided by the Association of English Cathedrals are used.
7.7 Chapter responsibilities
The Chapter is responsible under requirements laid down by the Church
Commissioners under the powers given to them by Section 27 of the Cathedrals
Measure 1999 for
 preparing and publishing an annual report and audited accounts which give a
true and fair view of the financial activities for each financial year and of
the assets, liabilities and funds at the end of each financial year of the
Cathedral and its connected entities
 stating that they have complied in all material respects with the Accounting
and Reporting Regulations for English Anglican Cathedrals prepared by the
Cathedral Administrators and Finance Association (CAFA) specified by the
Church Commissioners or describing which recommendations have not been
complied with and giving reasons for the non compliance
 selecting suitable accounting policies and then applying them consistently
 making judgements and estimates that are reasonable and prudent
Statutory Accounts
- page 8


keeping proper accounting records from which the financial position of the
Cathedral can be ascertained with reasonable accuracy at any time, and
safeguarding the assets of the Cathedral and taking reasonable steps for the
prevention and detection of fraud and other irregularities.
7.8 Clergy and senior staff changes
There were no changes during the year.
7.9 Related organisations
Friends of Rochester Cathedral
The Friends is an independent network of people with an interest in the built
heritage environment in general and Rochester Cathedral in particular. They had
a total membership of 967 at the end of the year. They provide substantial and
welcome financial support for the pressing work necessary on the fabric of the
Cathedral.
Rochester Cathedral Trust
The Trust is an independent body set up to receive money raised from appeals
made on the Cathedral’s behalf and to make grants in accordance with the terms
of the Trust Deed to support the development of the Cathedral. The Trustees are
drawn from across the region.
Rochester Cathedral Enterprises Ltd
The Chapter constitutes the Board of Directors of RCE Ltd, an independent wholly
owned company set up to run the Cathedral’s catering and retail operations.
Profits from the company are paid across to the Cathedral as Gift Aid.
King’s School Rochester
The King's School plays an important role in the life of the Cathedral,
supplying the choristers for the boys' choir and regularly holding major events
and concerts in the Cathedral. All Cathedral Residentiary Canons are Governors
of the School, and the Dean is ex officio Chair of Governors. The King’s School
pays a commercial rent for Dean and Chapter buildings they use. The Cathedral
contributes towards scholarships for the boy choristers who attend the school.
7.10 Investment Powers
Under the Cathedrals’ Measure 1999 the Chapter may invest the Cathedral's funds
in any of the following:
Land Funds administered for the Central Board of Finance of the Church of
England by CCLA Investment Management Ltd; investments in which trustees may
invest under the general power of investment in the Trustee Act 2000; the
improvement or development of property belonging to the Cathedral, except that
endowment funds may not be used to improve or develop the Cathedral itself and
its ancillary buildings.
7.11 Public Benefit
Although it is not a reporting requirement of the Church Commissioners,
nevertheless Chapter confirm that they have complied with section 4 of the
Charities Act 2006 to have regard to public benefit guidance published by the
Statutory Accounts
- page 9
Charity Commission in determining the activities of the Cathedral. The Cathedral
maintains a policy of free access to all members of the public. It 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.
7.12 Risk analysis
A risk register was developed in 2009 which detailed, by department, the risks
and the actions taken to reduce and manage them. During 2010/11 further work was
done to build on the progress made. Each department drew up an action plan of
items further to reduce risk in their areas of operations. Progress on these
action plans was reviewed by Chapter in January 2011 and the risk register
updated. It is intended that it will be an on-going exercise to review and
update the register every year.
7.13 Staffing and Volunteers
The Cathedral employs staff to deliver its objectives – vergers, musicians,
gardeners, education officers, cleaners, caterers, shop workers, accountants,
book-keepers, fundraisers and administrative support workers.
More than 350
volunteers provide invaluable support without which the Cathedral could not
function properly – stewards, welcomers, guides, chaplains, educationalists,
embroiderers, sewers, retail and catering volunteers, musicians, flower
arrangers, pastoral visitors, events organisers, brass polishers, choir helpers,
servers,
readers,
intercessors,
bell-ringers,
cash-counters,
committee
volunteers, envelope stuffers and many more besides.
8. Financial review
8.1
Major sources of finance
Investment income
The Cathedral owns 45 (2009/10 46) properties, both commercial and
residential, within the town of Rochester.
Property is the principal
source of investment income and in 2010/11 rents accounted for £439,135
(2009/10 £446,131) (26% of total income). Other investment income from
shares, stocks and interest amounted to £71,640 (2009/10 £36,835).
A
review of investment performance is given in a separate section below.
Grants
Grants are received from the Church Commissioners under Section 23 of the
Cathedrals’ measure 1999 towards Cathedral administrative salaries.
Statutory Accounts
- page 10
These amounted to £91,054 in 2010/11 (2009/10 91,825), which is included
within the total figure of £208,541 (2009/10 £210,192) – the balance
represents the Commissioners' contribution to the stipends of the Dean
and Residentiary Canons (£114,361 –
2009/10 £111,335) and a 2/3
contribution to the cost of repairing parish church chancels (£3,126 –
2009/10 £7,031).
2010/11 was the third year of the project Ancient Stones Untold Stories,
grant-aided by the Heritage Lottery Fund (HLF). Grants amounted to
£165,081 (2009/10 £467,082) during the year. Grants were also receivable
during the year from English Heritage for the Treasury Roof of the
Cathedral (£61,500 – 2009/10 - £61,500) and for repairs to the Roman Wall
(£16,827 – 2009/10 £422). Two further significant grants were received:
£50,000 from the Colyer-Fergusson Trust for the Crypt, and £50,000 from
the Royal Engineers for the Royal Engineers’ Monument and the glazed
entrances to the Cathedral.
£10,000 (2009/10 £22,256) was receivable
from the Choir Schools Association for music outreach, and £16,000 from
the All Churches Trust (2009/10 £8,380). Grants were also received under
the Listed Places of Worship scheme of £24,425 (2009/10 £4,929), which
related to VAT reclaimed on building work to the Cathedral. Grants from
Medway Council totalled £3,250 (2009/10 £850).
Voluntary income
The total received for congregational giving, donations and gift aid
amounted to £136,575 (2009/10 £134,701) during the year, which included
£6,937 (2009/10 £20,419) raised for an appeal to build a church/school in
Guadulur in India. In addition, £12,870 (2009/10 £18,646) was received
from the Friends of Rochester Cathedral to support specific projects and
the maintenance of the grounds.
The other significant source of
voluntary income was from Rochester Cathedral Trust for specific
projects. This amounted to £96,047 (2009/10 £537,399) during the year,
which included the transfer to the Cathedral of an endowment for music of
£16,231 (2009/10 £327,897). A further legacy instalment from the estate
of Mr HJ Hoby valued at £2,631 (£52,853) was received in the year, the
income from which is to be applied to fabric or music.
Trading
The Cathedral’s
Ltd), operates
adjacent to the
the Cathedral’s
trading company, Rochester Cathedral Enterprises Ltd (RCE
a Refectory serving lunches and teas in the College
Cathedral. It also operates a small retail operation from
Welcome Desk.
RCE Ltd turnover for the year was £220,397 (2009/10 £223,361).
The
company made a gift-aided payment to the Dean & Chapter from its annual
profits of £4,300 (2009/10 £11,000).
Other income
This includes lettings of the Cathedral, charges for educational visits,
guided tours, concerts and recitals, filming and recording fees, etc.
Excluding the gift-aid payment from RCE Ltd mentioned above, total income
from these sources amounted to £76,436 (2009/10 £85,985).
Statutory Accounts
- page 11
8.2
Reserves Policy
Reserves are needed both to maintain the level of the Cathedral’s current
activities and to enable the completion of long-term projects.
A surplus was made in 2010/11 on the general fund of £33,601 (2009/10
£17,977 deficit). This increased the consolidated general fund reserves
to £464,340 (2009/10 £430,739).
This is a considerable improvement
compared wth the original budget for 2010/11, which was set at a deficit
of £2,085 after projects.
Reserves represent just under 6 months of
ordinary activity.
The Dean & Chapter consider that the Cathedral should aim to hold
unrestricted reserve levels to cover at least six months of ordinary
activity, which at the present time would be approximately £500,000.
8.3
Investment Policy
The Dean & Chapter aim to keep a balanced portfolio of investments that
is risk averse and appropriate to the purposes of the funds that are
represented by them.
Investments in property are to be either capable of efficient local
management or in the form of managed property funds.
Performance is
measured against income yield on the CBF Property Fund, the property fund
managed by CCLA Investment Management Ltd on behalf of the Central Board
of Finance of the Church of England.
A medium to low risk profile is taken on equities and performance is
measured against total returns on the FTSE APCIMS Stockmarket Balanced
Portfolio Index, a private investor portfolio index established in 1997
that uses different combinations and weightings of existing FTSE indices
to achieve a good benchmark of performance for these type of private
investment portfolios.
Restricted Funds.
These funds usually arise from legacies and donations, and are required
for spending on defined purposes.
The policy is to achieve a balance
between capital growth and the ability to realise assets within a given
timescale.
Unrestricted Funds.
These funds are used for managing fluctuations in the ordinary operations
and to fund future projects. The policy is to achieve a mixed portfolio
of assets with capital growth and those providing high yields and easy
liquidity.
Endowment Funds.
Statutory Accounts
- page 12
Where the capital is to be retained, the policy is to achieve long-term
income growth, with less emphasis on liquidity.
8.4
Investment Performance
Property Investments.
The Dean and Chapter own property to house clergy and staff, and to use
for offices.
Other property is held for investment purposes and is
rented out on a commercial basis where possible to generate funds for the
day-to-day operation of the ministry of the Cathedral. Properties were
fully revalued at market value during 2006/7 and were revised for values
at 31st March 2011 with reference to external benchmark data.
£’000
Rental income
Professional services
Other costs
Major repairs
Net income
439.1
(9.2)
(54.2)
(6.5)
369.2
Yield on investment properties
£’000
Capital value investment property
Net income yield
CBF Property Fund income yield
£9,549
3.9%
7.1%
Our net income yield of 3.9% compares with 4.0% for 2009/10. The annual
net income yield will vary year by year depending on the amount of
capital works done in the year. Our relatively low yield reflects the
fact that several of our residential properties are on protected
tenancies with low rents. The return on commercial properties is
generally higher, but the increase in commercial capital values this year
has kept the income yield lower.
Other investments
The performance of the Cathedral’s other investments is shown below:
Equities
Gross income from other investments
£’000
Listed in the UK
Cash deposits
51.7
51.7
Fixed
interest
£’000
Variable
interest
£’000
16.4
-
3.5
16.4
Total
£’000
68.1
3.5
3.5
71.6
Gains/(losses)
revaluations/disposals
on
98.4
Statutory Accounts
4.1
- page 13
-
102.4
Total return on other investments
150.1
20.5
3.5
174.0
Return on other investments
£’000
Market value of other investments
Return
FTSE APCIMS Stockmarket Balanced Portfolio Index
2,738.6
6.4%
7.4%
In January 2010 we created a new endowment fund with Quilter that is set
up in accordance with
the Dean & Chapter’s Statement of Investment
Policy and bound by the Church of England’s ethical guidelines. The fund
was set up with an initial £1.78m, and with capital gains and a further
£16.3k addition to the music endowment was worth £1.94m at the end of
the financial year. This endowment fund had a 28.9% weighting in fixed
interest stocks (to generate the required levels of income), and capital
values of that class of asset fell in the last few months of the year
with expectations of an interest rate rise. Despite this, the Quilter
endowment achieved a return of 8.0%, which compares well with a target of
6% and the APCIMS benchmark of 7.4%. Other investments, including cash
deposits, brought the total return down to 6.4%.
At 31st March 2011 our total investments, excluding direct property
holdings, totalled £2.74m, of which 59% were held in listed equity funds,
31% in fixed interest stocks, 5% in property funds and 5% in cash.
8.5
Maintenance Plan for the Cathedral and its Precincts
A plan for regular routine maintenance of the Cathedral is in place and
is managed by the Head Verger.
A list of costed priorities for more major pieces of work arising from
the quinquennial inspection carried out during the year is used as the
basis for seeking grant funding to enable the work to be undertaken.
As mentioned elsewhere in the Report, much progress has been made in
reviewing the property portfolio and developing a clear estate strategy.
An investment and a maintenance plan were drawn up during the year, based
on the results of the survey and review.
8.6
Commentary on the 2010/11 results.
Rochester Cathedral’s finances are coming out of a transitional
phase. In 2007/8 we put in place a financial plan that relied on
three major building blocks: the successful award of a major
Heritage Lottery Fund (HLF) grant to improve the Cathedral as a
visitor attraction, the disposal of a large investment property
with a very large repair liability and the receipt of a substantial
Statutory Accounts
- page 14
legacy dedicated to support music in the Cathedral. The plan
allowed for us to incur losses and draw against reserves in 2008/09
and 2009/10 while those initiatives were being put in place, with
the objective of breaking even in the third year. We did indeed
incur losses in those two years, although the impact was
considerably
less than we had allowed for. The award of the HLF
grant and the sale of the property having been accomplished
successfully in previous years, this year (2010/11) saw the final
element realised – the sale of Barrett’s Folly at Shorne, which was
the property left to the Cathedral mentioned above. The sale took
place in October 2010, and we were able to set up a fund, the
objective of which is to support music by drawing a diminishing
amount over the next ten years. We were able to draw £45k from this
fund during the year, which enabled us, together with good
performance and good budgetary control elsewhere, not only to break
even but to achieve a surplus on the general fund of £33k.
The HLF project is now in the last stages of implementation. During
the year, work was completed on the building phases of the
programme and is now mainly concentrated on volunteer training. The
only aspect of the project that has not been successful has been
our ability to generate sufficient visitor income following on from
the great improvements in presentation and interpretation that the
project has delivered. Both audio guide and guide book sales have
been very disappointing and significantly below projections,
despite the excellent quality of both products. As the grant aid
runs out, we are faced with having to take on some of the costs
previously paid for – notably the salary of the Interpretation
Officer. We find that the visitor income generated from the
improvements
is insufficient in itself to cover these costs.
Therefore an important objective this year has been to examine our
strengths and opportunities and unlock potential to generate income
in other areas. In particular we have been looking at maximising
the return from our property and investments. Following the
completion of an Estates Management Plan and the introduction of a
new property management system, we are now in a much better
position
to
make
important
decisions
about
our
property
investments. Whereas future years will see the benefits of this
groundwork, the reinvestment of our other monetary assets has
already produced good results – investment income rose from £36k in
2009/10 to £68k in 2010/11, an increase of 89%. We have also made
progress in other visitor related areas: although audio-guide
rentals remain low, we have been able to develop retail sales at
the Welcome Desk, which increased from £10k to £16k during the
year. We plan further to expand the retail offer during 2011.
Following
the generous response to a stewardship initiative in
January 2010,
we have also been able to increase the take-up of
Statutory Accounts
- page 15
Gift Aid amongst congregation and visitors alike. Excluding
specific appeals, giving including Gift Aid increased from £114k
(2009/10) to £129k, an increase of £15k (13%).
The final result on the general fund was a surplus of £33k,
compared with the original budget of a £2k deficit. This now brings
our consolidated reserves up to £464k, which compares with the
expected level in our first five-year forecast of £309k for the end
of March 2011. Reserves are now nearly up to our stated target of 6
months expenditure on ordinary activities.
Headline income actually fell in the year from £2.3m to £1.7m. This
is due to 3 main factors: with the impending completion of the HLF
project, grants receivable reduced from £467k in 2009/10 to £165k.
Likewise, grants from Rochester Cathedral Trust reduced from £538k
to £96k. Last year the Trust transferred to the Cathedral a one-off
payment of £328k for the Music Endowment. Legacies received were
£50k less than last year when the penultimate instalment of the
Hoby Bequest was received. As mentioned above, giving increased
from £114k (2009/10) to £129k, although income for specific appeals
(Chennai Appeal) decreased from £20k to £7k, the project in
Guadulur having been completed during the year. The fall in HLF
grants of £302k was partly compensated for by an extra £16k in
grants from English Heritage for the Treasury Roof and the Roman
Wall. Other grants increased from £37k in 2009/10 to £154k. These
included £50k from the Colyer-Fergusson Trust for planning work for
the Crypt and £50k from the Royal Engineers for the Royal
Engineers’ Memorial and the Cathedral’s glazed entrances. We were
also very grateful for £16k (2009/10 £8k) from the Allchurches
Trust for the pioneer curacy.
Fees include charges to education groups and cathedral hire. These
fell from £75k to £72k. They were affected both by major works
going on in the cathedral during the year and recessionary
pressures. Whereas school visits experienced a small drop in
income, cathedral hire fell from £33k in 2009/10 to £29k. Rents
fell £9k from £446k to £435k. This was mainly due to a number of
void periods relating to commercial lets on the High Street and
also some vacancies in residential properties. Other investment
income rose by £32k owing to the reinvestment of our endowment in
January 2010. The endowment, invested with Quilters’, achieved a
total return of 8% last year, which was better than the benchmark,
the FTSE APCIMS index, which was 7.4% for the same period. Overall,
our total return was 6.4%, with capital gains amounting to £102k
(2009/10 £163k). We also had gains in property values of £716k
(2009/10 £361k loss). Commercial properties rose in value by an
Statutory Accounts
- page 16
average of 11%, but this was offset by a fall in the value of
residential properties in Medway of 1%.
Net profits from the Cathedrals’ trading arm, Rochester Cathedral
Enterprises Ltd, were disappointing this year. Refectory turnover
remained fairly static, but operational costs increased so that net
profit reduced from £14k (2009/10) to £8k. Controlling these costs
better is an important priority in 2011. The Welcome Desk currently
operates at a loss, but turnover increased by 63% and the result
was £2k better than last year despite the need to cover for staff
sickness. With expansion the operation can be brought into profit
next year. RCE Ltd gift-aided £4k to the Cathedral in 2010/11
(2009/10 £11k).
Operating expenditure was controlled well during the year with
nearly all departments spending within their budget limits. With
the assistance of generous grant aid, we were also able to carry
out some important repair projects. As well as completion of the
glazed entrances (£30k) and the refurbished lavatories (£19k)
within the HLF project, we undertook repairs to the Treasury Roof
(£218k),
the
monument
to
the
Royal
Engineers
(£26k)
and
conservation of the Roman Wall (£37k). A major event during the
year was the award of £657k for works to the Crypt from the ColyerFergusson Trust, the grant will be payable over more than one year
as work progresses. Professional fees of £50k were incurred during
the year in working up an expanded scheme that will incorporate
major works to the Library as well, for which the Cathedral was
also offered a grant of £100k from English Heritage.
Funds for restricted purposes fell £123k from £858k to £735k. The
main reason for this was a drawing on the Father Smith Fund of
£108k for the Treasury Roof. The Father Smith Fund now stands at
£310k. The other significant drawing was the £45k subsidy for music
drawn from the Mary J Smith (Barrett’s Folly) Fund as explained in
the first paragraph. Earmarked funds increased by 8k from £45k to
£53k. This is mainly due to an increase of £10k to the Chancels
Sinking Fund. The Cathedral is building up a fund so that we can
afford to pay for repairs to parish chancels for which historically
we are responsible. The fund now stands at £30k.
In summary, 2010/11 was a successful year in many ways. The
Cathedral was not immune from prevailing economic conditions but
generally it weathered them well. As planned it not only broke even
but generated a sufficient surplus on its General Fund to raise
unrestricted reserves to a respectable level. We believe that the
finances of the Cathedral are now in a sound and stable condition,
but with our focus clearly on future sustainability, we are
Statutory Accounts
- page 17
establishing important building blocks for its future well-being –
the near completion of a very well executed HLF project, solid
steps forward in property and investment planning, maximisation of
income from existing sources, the establishment of an important new
fund to support music, and the attraction of significant sums of
grant aid. Realising that, as match funding this has the potential
to attract even larger sums, the vision is to take the Cathedral
even
further
forward
in
terms
of
both
conservation
and
accessibility. We recognise that success in the Cathedral’s mission
and financial stability go hand in hand. The challenge is to
progress into the the future on both fronts together.
The Very Rev’d Adrian Newman
Dean
Statutory Accounts
- page 18
9. Statutory Accounts
THE DEAN AN D CHAPTER OF ROCHESTER
FIN AN CIAL ACCOU N TS
FOR THE YEAR EN DED
31stM ARCH 2011
Statutory Accounts
- page 19
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CATHEDRAL CHAPTER OF
ROCHESTER CATHEDRAL FOR THE YEAR ENDED 31 MARCH 2011
We have audited the financial statements of Rochester Cathedral for the year ended 31
March 2011 which comprise the consolidated Statement of Financial Activities, the
Consolidated and Entity-only Balance Sheets and the related notes. These financial
statements have been prepared under the accounting policies set out therein.
This report is made solely to the Cathedral Chapter, as a body, in accordance with
section 27 of the Cathedrals Measure 1993. Our audit work has been undertaken so that we
might state to the Dean and Chapter those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the Cathedral Chapter as a body,
for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of the Dean and Chapter and the auditors
As described in the Statement of the Financial Responsibilities the Dean and Chapter is
responsible for the preparation of the financial statements in accordance with applicable
law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice).
Our responsibility is to audit the financial statements in accordance with relevant legal
and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair
view and are properly prepared in accordance with the regulations specified by the Church
Commissioners under the powers given to them by section 27 of the Cathedrals Measure
1999. We also report to you by exception if, in our opinion: the Annual Report is not
consistent with the financial statements; or the Cathedral Chapter has not kept proper
accounting records; or we have not received all the information and explanations we
require for our audit.
Scope of the audit
An audit involves obtaining evidence about the amounts and disclosures in the financial
statements sufficient to give reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or error. This includes an assessment
of: whether the accounting policies are appropriate to the charity’s circumstances and
have been consistently applied and adequately disclosed; the reasonableness of
significant accounting estimates made by the Dean and Chapter; and the overall
presentation of the financial statements
In addition, we read all the financial and non-financial information in the Trustees’
Annual Report to identify material inconsistencies with the audited financial statements.
If we become aware of any apparent material misstatements or inconsistencies we consider
the implications for our report.
Opinion
In our opinion the financial statements:


give a true and fair view, in accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of the Cathedral’s and group’s affairs as at 31
March 2011 and of its consolidated incoming resources and application of resources in
the year then ended; and
have been properly prepared in accordance with the regulations specified by the Church
Commissioners under the powers given to them by section 27 of the Cathedrals Measure
1999.
Statutory Accounts
- page 20
haysmacintyre
Statutory Auditors
Fairfax House
15 Fulwood Place
London
WC1V 6AY
2011
Statutory Accounts
- page 21
The Dean and Chapter of Rochester
Consolidated Statem ent of FinancialActivities
for the year ended 31 M arch 2011
Notes
Unrestricted Earm arked Restricted Endow m ent
Funds
Funds
Funds
Funds
Total
Funds
2010/11
£000
248
622
72
225
510
1
1,678
2009/10
£000
743
790
75
235
483
2,326
Incom ing resources
Voluntary incom e
Grantsreceivable
Chargesand feesarising in the course ofm ission
Incom e from activitiesgenerating funds
Incom e from property and investm ents
Otherincom ing resources
Totalincom ing resources
11
£000
121
72
225
488
1
907
£000
3
3
£000
108
622
22
752
£000
16
16
Costs of generating funds
12
352
1
54
-
407
429
555
2
698
16
1,271
1,897
303
197
42
8
3
553
5
3
(5)
3
192
374
41
19
188
814
-
500
574
78
27
191
1,370
499
488
100
26
605
1,718
9
-
-
-
9
9
(7)
(1)
(116)
16
(108)
170
10
-
20
13
696
79
716
102
(361)
163
Gross transfers betw een funds
30
9
(39)
-
-
-
Net m ovem ent in funds
33
8
(122)
791
710
(28)
Totalfundsbroughtforward
431
45
857
14,566
15,899
15,927
464
53
735
15,357
16,609
15,899
Net incom ing resources available for m ission
Resources expended on m ission
M inistry & m usic
Cathedraland precinctsupkeep
Education and outreach
Com m unity,parish and congregation
Otherexpenditure on m ission
Totalresources expended on m ission
13
Governance costs
Net incom ing (outgoing)resources
Other recognised gains (losses)
Property
Investm ents
Totalfunds carried forw ard
16/18
17
23/24/25
The notesnum bered 1 to 36 form partofthese accounts.
Statutory Accounts
- page 22
Statutory Accounts
- page 23
The Dean and Chapter of Rochester
Consolidated Balance Sheet
as at 31 M arch 2011
Notes
Unrestricted Earm arked Restricted Endow m ent
Funds
Funds
Funds
Funds
£000
£000
£000
£000
Total
Funds
2010/11
£000
2009/10
£000
Fixed Assets
Investm ent assets
Property
Otherinvestm ents
16
17
352
352
31
31
655
655
9,549
1,701
11,250
9,549
2,739
12,288
9,286
2,531
11,817
Non investm ent assets
Property
Plant& equipm ent
18
19
32
32
-
-
4,000
4,000
4,000
32
4,032
3,917
39
3,956
384
31
655
15,250
16,320
15,773
9
96
50
129
284
22
22
133
133
120
120
9
229
50
271
559
7
257
70
99
433
(204)
(204)
-
(53)
(53)
(13)
(13)
(270)
(270)
(307)
(307)
80
22
80
107
289
126
464
53
735
15,357
16,609
15,899
451
13
-
53
-
310
288
12
125
-
15,357
451
13
310
288
12
178
15,357
418
13
390
340
172
14,566
464
53
735
15,357
16,609
15,899
Totalfixed assets
Current Assets
Stocks
Debtors
Shortterm deposits
Cash atbankand in hand
Liabilities due w ithin one year
Bankoverdraft
Creditors
20
21
22
Net current assets
Net assets
Funds
GeneralFund
RochesterCathedralEnterprises
FatherSm ith Bequest
M ary JSm ith Bequest
AncientStonesUntold Stories(HLF)
Otherfunds
Endowm ent
Totalfunds
3
23/24/25
The notesnum bered 1 to 36 form partofthese accounts.
Approved by the Dean & Chapteron 11th July 2011 and signed on itsbehalf
The Very Rev'd Adrian Newm an
Dean
Statutory Accounts
- page 24
The Dean and Chapter of Rochester
Balance Sheet -Dean & Chapter only
as at 31 M arch 2011
Unrestricted Earm arked Restricted Endow m ent
Funds
Funds
Funds
Funds
Notes
£000
£000
£000
£000
Total
Funds
2010/11
£000
2009/10
£000
Fixed Assets
Investm ent assets
Property
Investm ents
16
17
352
352
31
31
655
655
9,549
1,701
11,250
9,549
2,739
12,288
9,286
2,531
11,817
Non investm ent assets
Property
Plant& equipm ent
18
19
14
14
-
-
4,000
4,000
4,000
14
4,014
3,917
19
3,936
366
31
655
15,250
16,302
15,753
21
105
50
117
272
22
22
133
133
120
120
238
50
259
547
263
69
88
420
22
(187)
(187)
-
(53)
(53)
(13)
(13)
(253)
(253)
(287)
(287)
85
22
80
107
294
133
451
53
735
15,357
16,596
15,886
451
-
53
-
310
288
12
125
-
15,357
451
310
288
12
178
15,357
418
390
340
172
14,566
451
53
735
15,357
16,596
15,886
Totalfixed assets
Current Assets
Debtors
Shortterm deposits
Cash atbankand in hand
Liabilities due w ithin one year
Creditors
Net current assets
Net assets
Funds
GeneralFund
FatherSm ith Bequest
M ary JSm ith Bequest
AncientStonesUntold Stories(HLF)
Otherfunds
Endowm ent
Totalfunds
3
23/24/25
The notesnum bered 1 to 36 form partofthese accounts.
Approved by the Dean & Chapteron 11th July 2011 and signed on itsbehalf
The Very Rev'd Adrian Newm an
Dean
Statutory Accounts
- page 25
The Dean and ChapterofRochester
N otes to the Accounts
Accounting Policies
1.
Basis of preparation
The accountshave been prepared underthe historicalcostconvention with two exceptions:
-investm entsand propertiesforCathedraluse are included atcurrentvaluation,and
-the Cathedraland itsinventory are notincluded.
The Accountsare stated in accordance with the provisionsofthe Novem ber2006 Regulationson Accounting and Reporting by English Anglican
Cathedralsprepared forthe Association ofEnglish Cathedralsand specified by the Church Com m issionersundersection 27 ofthe Cathedrals
M easure 1999.
2.
Basis of consolidation
The consolidated financialstatem entscom prise those oftheChapterand ofitswholly owned subsidiary com panyRochesterCathedralEnterprises
Ltd.
3.
Type of funds
A fund isa poolofexpendable resources,held and m aintained separately from otherpoolsbecause ofthe circum stances in which the resources
were originally received and the way in which they have subsequently been treated.Fundsare divided into:
·
·
·
·
Restricted funds.These have specific conditionsattached to the expenditure ofcapitalorincom e.
Endowm entfunds.These are restricted fundswhere the capitalm ustbe held perm anently.
Unrestricted funds.The Dean and Chapterhave the discretion to spend both capitaland incom e.
Earm arked (ordesignated)funds.These are unrestricted fundsreserved forspecific purposes.
4a. Property
Property valuationshave been included on the Balance Sheeton the following basis:
·
·
Investm entproperties– m arketvalue
Non – investm entproperties – existing use value
The Cathedral’spropertieswere revalued by RobertW ickham FRICS,an externalvaluer,asatM arch 2007 and revised forvaluesup to M arch 2011
with reference to externalbenchm arkdata.The Cathedral’spolicy isto revalue the propertiesevery five years.
No valuehasbeen attributed on thebalancesheetto theCathedralitselforto itsancillarybuildings.Thisison the basisthatinform ation on thecost
orvaluation ofthese is notavailable and could notbe obtained ata costproportionate to the benefitsto the users ofthe accounts.This isas
provided forin section 7.2.1 oftheAccountingand ReportingRegulationsforEnglish Anglican Cathedralsand isconsistentwith the requirem entsof
FRS30 Heritage Assets.
4b. Heritage assets
UnderS13(1)ofthe Care ofCathedralsM easure 1990,Cathedralsare required to keep an inventory ofitem sowned by the Cathedralthatare of
architectural,archaeological,artistic orhistoric interest.The m easure also issuesstrictguidelinesaboutthe acquisition and disposalofsuch assets.
No value isattributed to these assetson the balance sheetin accordance with section 7.2.2 ofthe Accounting and Reporting RegulationsforEnglish
Anglican Cathedrals.The Dean and Chapterhave furtherconsidered the requirem entsofFRS30 Heritage Assets,which post-datesthe Regulations,
and are ofthe opinion thatthe policy iscom pliantwith thisstandard on the basisthatinform ation on the costorvaluation ofthe assetsisnot
available and could notbe obtained atproportionate cost.
In com pliance with FRS30 the Dean and Chapterhave included additionaldisclosuresin connection with these assetsin note 36.
5.
Investm ents
Investm entsare included atm arketvalue based on theirm id m arketvalue.
Realised gainsand losseson sale ofinvestm entsrepresentproceedsofsale lessthe appropriate proportion ofthe opening carrying value and are
shown in the Statem entofFinancialActivities
Unrealised gainsand losseson revaluation ofinvestm entsare also shown in the Statem entofFinancialActivities.
The m ajority ofthe Cathedral’sequity and stockinvestm entsare held in m anaged fundsoverseen by fund m anagersQuilter.
Statutory Accounts
- page 26
6.
Fixed assets
Com puterequipm entand otherassetsover£500 arecapitalised and written off on astraightlinebasisoverthelife ofthe asset.The ratesgenerally
applicable are:
Com puter& IT equipm ent
3 years
Otherplant,m achinery,furniture orfittings
5 years
7.
Stock
Retailand catering stocksare stated atthe lowerofcostand netrealisable value.
8.
Legacies are accounted forwhen received.
9.
Grants
Grantsaredefined assum sreceivablefrom trustsand publicbodies,paym entofwhich isdeterm ined bycom pliance with determ ined criteria.Grants
are accounted forwhen due.
10. Third Party receipts and paym ents
TheChurch Com m issionersand theDiocesepaythestipendsoftheDean,thePrecentorand the Canon Pastor.ThepostsofArchdeacon and Canon
M issionerareshared (20%)with theDiocese(80%).Theam ountsareshown in a Restricted Fund in the Statem entofFinancialActivities,both under
grantsreceived and underclergy costs.
11.Incom ing resources
(i) Voluntary incom e
Congregationalcollectionsand giving
Donations
Incom e from appeals& fundraising
Tax recovered underGiftAid
Incom e from supportergroups& trusts
FriendsofRochesterCathedral
RochesterCathedralTrust(see note below)
Legacies
(ii) Grants receivable
Church Com m issioners
Diocese
English Heritage
Heritage Lottery Fund
Othergrants
(iii) Charges and fees arising in the
course of m ission
Fees
(iv) Incom e from activities generating funds
Chargesto visitors
Retail
Catering
(v) Incom e from investm ents
Investm entproperty incom e
Otherinvestm entincom e
Interestfrom short-term deposits
(v) Other incom ing resources
Insurance claim s
Unrestricted
Funds
£000
Earm arked
Funds
£000
Restricted Endow m ent
Funds
Funds
£000
£000
Total
Funds
£000
76
28
17
3
-
4
7
1
-
76
35
7
18
64
36
20
14
121
3
13
80
3
108
16
16
13
96
3
248
18
538
53
743
-
-
209
16
78
165
154
622
-
209
16
78
165
154
622
210
14
62
467
37
790
72
72
-
-
-
72
72
75
75
5
16
204
225
-
-
-
5
16
204
225
11
20
204
235
439
46
3
488
-
22
22
-
439
68
3
510
446
36
1
483
2009/10
£000
1
-
-
-
1
-
908
3
752
16
1,679
2,326
Incom e from RochesterCathedralTrustincluded a transferof£16kfrom the M usic Endowm ent,which isshown asa separate endowm entto the
Cathedral'sexisting endowm ents.(see note 25).
Statutory Accounts
- page 27
12.Costs of generating funds
Facilitiesforvisitors
Servicesdirectly recoverable
Retail
Catering
M arketing costs
Costsofappealsand fundraising
Investm entproperty costs
Estate projects(Note 14)
Otherinvestm entproperty costs
Investm entm anagem ent
Supportcosts
Unrestricted
Funds
£000
9
5
20
196
1
3
Earm arked
Funds
£000
1
-
24
71
3
20
352
1
Restricted Endow m ent
Funds
Funds
£000
£000
2
19
2
31
54
-
Total
Funds
£000
10
5
20
196
1
3
2009/10
£000
9
12
22
190
2
-
26
90
5
51
407
84
59
2
49
429
The costofgenerating fundsisany costdirectly attributable to the incom e generated and notassociated with specific areasofm inistry (see below)
13.Expenditure on m ission
(i) M inistry & m usic
Clergy stipendsand
working expenses
Clergy housing costs
Clergy supportcosts
Servicesand m usic
M inistry supportcosts
(ii) Cathedraland precincts upkeep
M ajorprojects (note 14)
M aintenance and interiorupkeep
Insurance
Precinctssecurity and gardensupkeep
Supportcosts
(iii) Education and outreach
Educationalactivities
Archives& library
Charitable giving
M usic outreach project
Supportcosts
(iv) Com m unity,parish and congregation
Com m unity,parish and congregation costs
Supportcosts
(v) Other expenditure on m ission
Interestand sim ilarcharges
Care ofchancels
Developm entinitiatives
Interpretation project(HLF)(Note 14)
Unrestricted
Funds
£000
Earm arked
Funds
£000
Restricted Endow m ent
Funds
Funds
£000
£000
Total
Funds
£000
1
14
34
232
22
303
5
5
130
29
33
192
-
131
14
34
266
55
500
127
12
36
267
57
499
3
125
22
35
12
197
3
3
349
6
19
374
-
352
128
22
41
31
574
273
120
22
39
34
488
33
1
5
3
42
(5)
(5)
23
13
5
41
-
33
1
28
8
8
78
36
1
23
31
9
100
6
2
8
-
16
3
19
-
22
5
27
21
5
26
1
2
3
-
3
1
184
188
-
1
5
1
184
191
3
10
12
580
605
553
3
814
-
1,370
1,718
2009/10
£000
Charitable giving includes£22,738 (2009/10 £11,500)given to supportthe construction ofa church and schoolin Chennaifrom fundsraised forthat
purpose through the Cathedral'sChennaiAppeal.
Statutory Accounts
- page 28
14. M ajor Projects -gross cost
Startdate
Estate Projects
EastCanonry refurbishm ent
92 High Streetgarage roofrepair
Othersunder£5,000
2010/11
2010/11
2010/11
Startdate
Cathedralm ajor projects
Cryptm ajorworks
Treasury Roofrepairs
RoyalEngineers'M em orial
Rom an City W allconservation
Oratory Eyem ats
Clockconservation
Othersunder£5,000
2008/09
2009/10
2009/10
2010/11
2010/11
2010/11
2010/11
Unrestricted
Funds
£000
8
5
11
Earm arked
Funds
£000
-
24
-
Unrestricted
Funds
£000
3
Earm arked
Funds
£000
-
3
-
Restricted Endow m ent
Funds
Funds
£000
£000
2
2
-
Restricted Endow m ent
Funds
Funds
£000
£000
50
218
26
37
5
6
7
349
-
Total
Funds
£000
8
5
13
26
Total
Funds
£000
50
218
26
37
5
6
10
352
Heritage Lottery Fund project
In April2008,the Cathedralwasawarded agrantof£931,000 bythe HeritageLottery Fund forim provingaccessand interpretation in the Cathedral.The
totalvalue ofthe projectentitled "AncientStonesUntold Stories"is£1,295,000,ofwhich £1,173,750 wasspentby 31stM arch 2011.
15. Support costs
Supportcosts,which are the running costs ofthe adm inistration departm ent,are allocated to the differentexpenditure headingson the basis ofthe
num beroffull-tim e staffin each departm ent.The supportcostsare apportioned asfollowsto the m ain expenditure headings:
Direct
Support
costs
costs
£000
£000
Fundsgeneration
356
51
M inistry
445
55
Cathedraland precinctsupkeep
543
31
Education and outreach
70
8
Com m unity,parish and congregation
22
5
Governance
9
1,445
150
16. Investm ent property
Value at1stApril2010
Additions
Disposalproceeds
Gain on disposals
Gain on revaluation
Value at31stM arch 2011
Unrestricted
Funds
£000
-
Earm arked
Funds
£000
-
Restricted Endow m ent
Funds
Funds
£000
£000
350
8,936
(370)
20
613
9,549
The propertieswere revalued atm arketvalue asat31th M arch 2007 and revised asat31stM arch 2011.
Allpropertiesare held atfreehold value,and none are held by the subsidiary com pany.
Statutory Accounts
- page 29
Total
£000
407
500
574
78
27
9
1,595
2009/10
£000
429
499
488
100
26
9
1,551
Total
Funds
£000
9,286
(370)
20
613
9,549
2009/10
£000
9,837
7
(558)
9,286
17. Other investm ents
Value at1stApril2010
Additions/disposals
Netincrease on disposalsand revaluation
Value at31stM arch 2011
Unrestricted
Funds
£000
334
8
10
352
Earm arked
Funds
£000
20
11
31
41
19
278
14
352
31
31
Listed equity securities
Listed fixed intereststocks
CBF Investm entshares
Property Funds
Cash investm ents
Restricted Endow m ent
Funds
Funds
£000
£000
452
1,725
190
(103)
13
79
655
1,701
220
378
20
37
655
1,043
451
150
57
1,701
Total
Funds
£000
2,531
106
102
2,739
1,304
848
298
150
139
2,739
2009/10
£000
2,203
165
163
2,531
929
153
287
1,162
2,531
No individualequity holding am ountsto over5% ofthe totalvalue ofinvestm ents.
No investm entsare held by the subsidiary com pany.
18. Non-investm ent property
Unrestricted
Funds
£000
-
Earm arked
Funds
£000
-
-
-
-
3,839
161
4,000
19. Plant and equipm ent
Plant
Costbroughtforward at1stApril2010
Additions
Disposals
Costcarried forward at31stM arch 2011
Fixtures &
Fittings
£000
42
42
Total
£000
48
1
49
Com puter
Equipm ent
£000
26
2
28
£000
116
3
119
2009/10
£000
110
6
116
Depreciation broughtforward at1stApril2010
Charge foryear
On disposals
Depreciation carried forward at31stM arch 2011
31
5
36
22
2
24
24
3
27
77
10
87
67
10
77
Netbookvalue
13
4
15
32
39
Freehold value at1stApril2010
Netincrease/(decrease)in revaluation
Freehold value at31stM arch 2011
ForCathedraluse
ForTrading purposes
Restricted Endow m ent
Funds
Funds
£000
£000
3,917
83
4,000
Total
Funds
£000
3,917
83
4,000
3,839
161
4,000
2009/10
£000
3,720
197
3,917
3,771
146
3,917
No investm entpropertiesare held by the subsidiary com pany.
Ofthe above,a netbookvalue of£18.0kisheld by the subsidiary com pany.
20
Stocks
Value atlowerofcostornetrealisable value
Allthe stocksabove are held in the subsidiary com pany.
Statutory Accounts
Retail
£000
5
- page 30
Catering
£000
4
Total
£000
9
2009/10
£000
7
Statutory Accounts
- page 31
21
Debtors due w ithin one year
Trade debtors
RochesterCathedralTrust
Grantdebtor
Grants
Other
Prepaym ents
Unrestricted
Funds
£000
44
Earm arked
Funds
£000
-
43
9
96
-
Restricted Endow m ent
Funds
Funds
£000
£000
2
126
5
133
-
Total
Funds
£000
44
2
126
48
9
229
2009/10
£000
67
14
145
26
5
257
Ofthe above £0.3kisheld by the subsidiary com pany.
The Dean & Chapterbalance sheetalso includes£9.4kowed by itssubsidiary.
22. Creditors falling due w ithin one
year
Unrestricted
Funds
£000
40
62
102
204
Trade creditors
Other
Accrualsand deferred incom e
Earm arked
Funds
£000
-
Restricted Endow m ent
Funds
Funds
£000
£000
52
13
1
53
13
Total
Funds
£000
40
127
103
270
2009/10
£000
20
76
211
307
Investm ent
Incom e Expenditure M ovem ents
£
£
£
1,282
(4,832)
(417)
500
5,210
124
(789)
494
295
(464)
321
100
(339)
277
(89)
(116)
102
(2,850)
-
Transfers
£
(1,305)
10,000
-
Balance at
2010/11
£
17
236
9,239
747
494
108
321
572
909
2,212
3,887
1,000
30,139
2,686
8,695
52,567
Ofthe above,£17.3kare held in the subsidiary com pany.
23. Earm arked Funds
Concert
PrecentorsFund
M usic Outreach Fund
Pastor'sFund
India TravelFund
StewardsFund
Education Fund
Dean'sFund
JuniorChurch Fund
M issionerFund
AngelSpace
Cathedrallighting
ChancelsSinking Fund
FriendsofRC Cherry picker
Balance at
2009/10
£
4,872
653
3,529
1,412
277
811
632
2,301
4,003
1,000
20,037
5,536
45,063
3,001
(4,192)
-
Earm arked Funds -description
Concert
PrecentorsFund
M usic Outreach Fund
India TravelFund
Pastor'sFund
StewardsFund
Education Fund
Dean'sFund
JuniorChurch Fund
M issionerFund
AngelSpace
Cathedrallighting
ChancelsSinking Fund
FriendsofRC Cherry picker
To sponsorm usic in the Cathedral
Canon Precentor'sdiscretionary fund
To supportthe m usic outreach program m e
To assisttravelto Cathedralsupported projectsin Chennai
Canon Pastor'sdiscretionary fund
To supportcostsand training ofcathedralstewards
To supportdevelopm entaleducation work
Dean'sdiscretionary fund
To supportcostsand set-up ofJuniorChurch
Canon M issioner'sdiscretionary fund
To prom ote the AngelSpace eventin the Cathedral.
To im prove lighting within the Cathedral
To provide forfuture repairsto parish church chancels(note 33)
A giftin 2007 to buy the Cathedralcherry picker.The expenditure charged to the fund isthe annual
depreciation on the asset.
Statutory Accounts
- page 32
24. Restricted Funds
FatherSm ith Bequest
HJHoby Bequest
Church Com m issioners'Restricted
CathedralProjectsfund
M usic fund
AncientStonesUntold Stories(HLF)
Organ Sinking Fund
PetersBequest
Em broidery fund
Chennaiprojectfund
M ary JSm ith Bequest
Rom an W allFund
Library Fund
Balance at
2009/10
£
390,348
75,365
6,273
204
5,662
20,441
2,338
16,587
339,811
761
857,790
Investm ent
Incom e Expenditure M ovem ents
£
£
£
9,778
(107,761)
17,180
5,125
(2,207)
3,607
224,469
(224,469)
235,279
(241,552)
29,276
(29,276)
195,338
(183,870)
38
111
36
(1,053)
7,566
(22,738)
(18,719)
12,016
44,264
(36,540)
4
751,284
(868,185)
32,803
Transfers
£
6,305
(45,000)
(38,695)
Restricted Funds -description
FatherSm ith Bequest
HJHoby Bequest
Church Com m issioners'Restricted
CathedralProjectsFund
M usic Fund
AncientStonesUntold Stories(HLF)
Balance at
2010/11
£
309,545
81,890
11,672
12,005
20,552
1,321
1,415
288,108
7,724
765
734,997
Incom e/
capital
Thisfund derived from the willof Revd CL Sm ith.It isto be applied in constructive
work in connection with the Cathedral,for exam ple the reconditioning of a Chapel.
Both incom e and capitalm ay be used.
Thisfund derived from the estate ofHJHoby.The balance represented here isto be
applied to produce incom e forthe upkeep ofthe Cathedralfabric.
To m eetstipendsand associated costsofclergy
Forprojectsspecifically funded by outside bodies
Both
Forthe provision ofm usic.From the M usic Endowm ent
Both
Residue -incom e
only
Both
Both
Forthe interpretation projectfunded by the Heritage Lottery Fund.Itincludesgrants
from the HLF and RochesterCathedralTrust
Forthe future refurbishm entofthe organ
Both
Organ Sinking Fund
DorisColm ore PetersBequest
Forwork with youth and children
Both
Em broidery Fund
Forrestoration ofthe Library curtainsand otherem broidery projects
Both
Chennaiprojectfund
M ary JSm ith Fund
Rom an W allFund
Library Fund
Forconstructing a church nearChennai,India
Both
Both
Both
Both
25. Endow m ent Funds
Generalendowm ent
M usic endowm ent
Forsupporting m usic in the Cathedral
Form aintenance ofthe Rom an W all
Forpurchasesand running costsofthe library
Balance at
2009/10
£
14,237,846
327,898
14,565,744
Endow m ent Funds -description
Generalendowm ent
M usic Endowm ent
Both
Investm ent
Expenditure M ovem ents
£
£
757,662
16,231
17,800
Incom e
£
16,231
-
775,462
Perm anentendowm entto generate incom e forthe Cathedral
Raised by RochesterCathedralTrustforthe provision ofm usic
26. Staff num bers
The average fulltim e equivalentnum berofpaid staffworking forthe Cathedralduring the yearwas30 (2009/10 29)
No.
Fundsgeneration
8.1
M inistry
9.0
Cathedraland precinctsupkeep
5.8
Education and outreach
1.6
Com m unity,parish and congregation
0.9
Adm inistration and finance
2.8
Heritage Lottery Fund project
1.5
29.7
Ofthe above,m em bersofChapternum bered 3.4 (2009/10 3.4)
Statutory Accounts
- page 33
-
Balance at
2010/11
£
14,995,508
361,929
-
15,357,437
Transfers
£
Incom e/capital
Incom e only
Incom e only
27. Staff costs
Salaries &
Stipends
£000
702
Em ployers' Em ployers'
NI
Pension
£000
£000
51
51
Total
£000
803
2009/10
£000
798
The aggregate rem uneration ofChapterm em bersincluded above was£130.2k(2009/10 £125.6k).See note 30.
28. Pensions
The Cathedralparticipates in the Church ofEngland Defined Contributions Schem e,partofthe Church W orkers Pension Fund.The assets ofthe
schem eareheld separatelyfrom thoseoftheDean and Chapterin an independentlyadm inistered fund.The costsoftheschem e arecharged in the
accountsand are shown in note 27.
29. Em olum ents of higher paid staff
No m em berofstaffwaspaid m ore than the disclosure lim itof£60,000.
30. Rem uneration of m em bers of Chapter
The rem uneration ofthe m em bersofChapterlay within the following bands:
Em ployers'
Pension %
£30k-£35k
35%
£20k-£25k
35%
£20k-£25k
35%
£5k-£10k
36%
£0k-£5k
35%
The Dean
Canon Precentor
Canon Pastor
Archdeacon (20% attributable to the Cathedral
Canon M issioner(20% attributable to the Cathedral)
The rem uneration and pension provision ofclericalm em bers ofChapterare paid in accordance with scales laid down annually by the Church
Com m issioners,the Archbishops’Counciland the Church ofEngland PensionsBoard.No rem uneration waspaid to laym em bersofChapterin their
capacity asChapterm em bers.
£4,538 (2009/10 £5,311)in expenses were paid in totalto the 8 (2009/10 8)m em bers ofChapterduring the year.Expenses com prised travel,
entertainm ent,giftsand departm entalexpenses.
31. Auditors rem uneration
Auditors'rem uneration forauditservicesam ounted to £8,800 (2009/10 £8,450)
32. Com m itm ents
The Dean & Chapterhad the following contractualcom m itm entsatthe end ofthe year:
Cathedralclockrepairs
Conservation plan and archaeologicalreview
Design -Crypt& Library
Professionalfees-Crypt/Library works
Com m itted
forfuture
£000
7.8
3.2
2.0
17.6
33. Contingent Liability
TheDean & Chapterhavealegalresponsibility forthe m aintenance and repairof25 parish church chancels.Theyare entitled to claim 66.6% ofthe
costsincurred from the Church Com m issioners.
34. Consolidated entities
RochesterCathedralEnterprisesLtd iswholly owned by the Dean & Chapter,and itsresultsand assetshavebeen consolidated into theseaccounts.
The com pany gift-aided £4,300 to the Dean & Chapterduring the year(2009/10 £11,000).
Statutory Accounts
- page 34
35. Connected entities
Two entitiesexistwhich arewhollyforthebenefitofthe Cathedral,butwhich are notunderitscontrol:beingRochesterCathedralTrustand Friends
ofRochesterCathedral.
Only incom e received orreceivable from the entitiesisincluded in the accounts.
Relevantinform ation abouttheirincom e and assetsis:
Grossincom e
Netincom e
Am ountpaid to the Cathedral
GrossAssets
NetAssets
Friends of Rochester
Cathedral
y/e 28.2.11
y/e 28.2.10
£000
£000
48
42
44
154
76
36
1,169
1,161
Rochester Cathedral
Trust
y/e 5/4/11
y/e 5/4/10
£000
£000
151
370
12
(220)
96
537
1,125
1,117
133
127
134
115
36. Heritage Assets
The Cathedralownsa num berofassetsthatare ofarchitectural,archaeological,artistic orhistoric interestand which would be considered to be
heritage assets.Asstated in note 4b,no value isplaced on these assetsin the balance sheet.
Nature ofassets
Heritage assetsfallinto the following categories
Paintings
Plate
Textiles(including robesand altarlinen)
Books
Stained Glass
M onum entsand ledgers
M iscellaneous(including bells,organs,clocksand lights).
No item sincluded in the inventory have been disposed ofin the yearand no item sacquired which would warrantinclusion in the inventory.
Acquisition,disposal,preservation and m anagem entofheritage assets
Undersection 13(1)ofthe CareofCathedralsM easure 1990,Cathedralsarerequired to keep an inventory ofitem sowned by theCathedralthatare
ofarchitectural,archaeological,artistic orhistoric interest.
Section 2 (b)and (c)ofthe m easure also issuesstrictguidelinesaboutthe acquisition and disposalofsuch assets.
M any ofthe heritageassetsheld are situated within theCathedralitselfand can be viewed by visitorsto theCathedral.From tim e to tim e,theDean
and Chapterwillgrantpublic accessto certain heritage assetssuch asthe exhibition in July2010 ofthe TextusRoffensis,theearliestwritten record
ofthe English language.
Statutory Accounts
- page 35