(A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014 Company Registration Number 00540920 (England and Wales)
CONTENTS Legal and Administration Information 1 Trustees Report 23 Independent Examiners Report to the Trustees of The Friends of Guildford Cathedral 4 Statement of Financial Activities 5 Balance Sheet 6 Notes to the Financial Statements 710
LEGAL AND ADMINISTRATION INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2014 Trustees J.W. Austin ShirleyMargaret Lloyd (Vice Chairman) R. D. Dore (until 13 July 2014) Pauline Read S.A. Kirkland S.E. Mackelworth The Very Revd Dianna Gwilliams (Chairman) A.J.E Hodges Revd Canon Andrew Bishop Charity Registration number 250402 Company Number 00540920 Registered Office The Cathedral Stag Hill Guildford Surrey GU2 7UP Independent Examiner Mrs Lesley Paler ACA Moore Stephens (Guildford) LLP Priory House Sydenham Road Guildford Surrey GU1 3RX 1
TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2014 The Trustees, who are also the Directors of the company, are pleased to present their report together with the financial statements of the charitable company for year to 31 December 2014. The legal and administrative information set out on the information page, page 1, forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice, Accounting and Reporting by Charities (2005). History, objectives and activities of the Trust The Friends of Guildford Cathedral was registered with the Charity Commissioners on the 22nd July 1969. The aim of The Friends is to bring together all those who love the Cathedral and wish to support its work. They have particular interest in supporting the Dean and Chapter in the embellishment and maintenance of the Cathedral fabric, fittings and furniture. Management, risk and governance arrangements A Board of Trustees of up to 14 members, who meet quarterly, administers the Charity. There is a subcommittee appointed by the Trustees to manage the daytoday operations of the Charity. The Chairman of Trustees is responsible for the induction of any new Trustee which involves awareness of a Trustee s responsibilities, the governing document, administrative procedures and the history and philosophical approach of the Charity. A new Trustee would receive copies of the previous year s annual report and accounts and a copy of the Charity Commission leaflet The Essential Trustee: What you need to know. The Trustees annually review the major strategic, business and operational risks which the Charity faces to ascertain that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen those risks. Procedures and policy for grant making Nominations for grants are elicited from the Dean and Chapter of the Cathedral and considered by the Trustees. The Trustees always seek feedback on the actual use of the grants given. The explanations and feedback received are sufficient for monitoring the quality of the grants made. Achievements and performance of the Trust During the year the Trust has been able to continue its support for the Cathedral. Financial review, investment policy and reserves Total income for the year was 44,460 (2013 27,074). After expenditure of 52,238 (2013 44,893) this left a deficit of 7,778 (2013 deficit 17,819). Grants to the Cathedral amounted to 35,700 (2013 30,099) details of which are in note 5. Our investments increased by 4,025 (2013 decrease of 1,100) in value in the year, leaving a net decrease in funds of 3,753 (2013 decrease of 18,919). At 31 December 2014 our reserves totalled 167,634 (2013 171,387) of which unrestricted funds totalled 126,403 (2013 132,177) and endowed and restricted funds totalled 41,231 (2013 39,210). 2
TRUSTEES ANNUAL REPORT FOR YEAR ENDED 31 DECEMBER 2014 (continued) Financial review, investment policy and reserves (continued) The investment portfolio is managed on a discretionary basis by Charles Stanley & Co. The Trust has chosen not to adopt formal ethical investment policies. It is the policy of the Trust to maintain unrestricted funds, which are free reserves of the charity at a level which equates to at least twelve months unrestricted expenditure. This provides sufficient funds to cover administration and support costs and to respond to emergency applications for grants which might arise from time to time. Unrestricted funds were maintained at this level throughout the year. Public benefit When planning our activities for the year, the Trustees have considered the Charity Commission s guidance on public benefit and, in particular, the specific guidance for the advancement of religion. Future plans The Trustees intend to continue providing grants to the Cathedral in a similar way to the recent past continuing the emphasis on the embellishment and maintenance of the Cathedral fabric, fittings and furniture. This report has been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (issued in March 2005), and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. Trustee Dated The Very Revd Dianna Gwilliams 3
INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES ON THE UNAUDITED ACCOUNTS OF THE FRIENDS OF GUILDFORD CATHEDRAL FOR THE YEAR ENDED 31 DECEMBER 2014 I report on the accounts of The Friends of Guildford Cathedral for the year ended 31 December 2014 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes set out on pages 5 10. This report is made solely to the Charity s Trustees, as a body, in accordance with s.145(1) of the Charities Act 2011. My examination has been undertaken so that I might state to the Charity s Trustees those matters I am required to state to them in an independent examiner s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity s Trustees as a body, for my examination, for this report, or for the opinions I have formed. Respective responsibilities of Trustees and Examiner The Trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: examine the accounts under section 144 of the 2011 Act; to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act as amended); and to state whether particular matters have come to my attention. Basis of Independent Examiner s report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes a consideration of any unusual items or disclosures in the accounts, and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a true and fair view and the report is limited to those matters set out in the statement below. Independent Examiner s statement In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements: to keep accounting records in accordance with section 386 of the Companies Act 2006; and to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Mrs L A Paler ACA Moore Stephens (Guildford) LLP Chartered Accountants Priory House, Pilgrims Court Sydenham Road Surrey GU1 3RX Date 4
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR TO 31 DECEMBER 2014 Notes Unrestricted Funds Endowment Restricted Fund Total 2014 Total 2013 Incoming Resources from generated funds Voluntary income: Donations Legacies Sundry Income Activities for generating Funds Social events Gift Aid Subscriptions 615 5,000 510 6,125 10,368 2,284 12,434 25,086 6,094 6,094 827 827 6,709 5,000 510 12,219 10,368 3,111 12,434 25,912 798 1,100 50 1,948 7,765 1,838 9,687 19,290 Investment Income 3 4,567 1,761 6,328 5,836 Total Incoming Resources 35,778 = 8,682 44,460 27,074 Resources Expended Costs of generating funds 4 15,478 15,478 13,664 Charitable Activities Costs in the furtherance of the objects of the Charity 5 28,779 6,921 35,700 30,099 Governance Costs Total Resources Expended Net (Outgoing)/Incoming Resources Unrealised gain/(loss) on revaluation of investments 6 1,060 45,317 = (9,539) 3,765 = 260 6,921 = 1,761 1,060 52,238 = (7,778) 4,025 1,130 44,893 (17,819) (1,100) Net movement in funds for year (5,774) 260 1,761 (3,753) (18,919) Fund Balance at 31 December 2013 132,177 35,320 3,890 171,387 190,306 Fund Balance at 31 December 2014 10, 11 126,403 35,580 5,651 167,634 171,387 5
The notes on pages 7 10 form part of these financial statements. BALANCE SHEET AS AT 31 DECEMBER 2014 Company registration number: 00540920 Fixed Assets Notes Unrestricted Funds Endowment Restricted Funds Total 2014 Total 2013 Investments 7 115,921 35,580 151,501 152,521 Current Assets Debtors Deposit Account Cash at Bank and in hand 8 4,538 9,473 29,636 43,647 5,651 5,651 4,538 9,473 35,287 49,298 2,080 4,769 15,400 22,249 Current Liabilities Creditors & Accruals 9 33,165 33,165 3,383 Net Current Assets 10,482 5,651 16,133 18,866 Total Assets less Current Liabilities Represented by 126,403 35,580 5,651 167,634 171,387 Funds 10, 11 126,403 35,580 5,651 167,634 171,387 For the year ending 31 December 2014 the company was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies. Directors responsibilities: The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 December 2014 and of its result for the year then ended in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Companies Act 2006 relating to the financial statements so far as applicable to the company. The financial statements have been prepared in accordance with the special provisions relating to Companies subject to the Small Companies regime within Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements were approved by the Board and authorised for issue on. The Very Revd Dianna Gwilliams The notes on pages 7 10 form part of these financial statements. 6
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2014 1. Legal status The Friends of Guildford Cathedral is a company limited by Guarantee and not having a share capital. The guarantee is provided by members of the Council, each Member s guarantee is limited to 50p. 2. Basis of Accounting (a) (b) (c) (d) (e) (f) The company raises money for various projects to assist the finances of the Cathedral. Once projects have been completed, the expenditure is passed into the hands of the Dean and Chapter. The Company, therefore, has no title to assets comprised in the projects and no depreciation is required in respect of the expenditure incurred on these projects. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the Statement of Recommended Practice on Accounting and Reporting by Charities (issued in March 2005), Applicable Accounting Standards and the Companies Act 2006. All incoming resources are included on an accruals basis in the period to which they relate. Subscription income includes tax reclaimable. Life subscriptions are taken to income in the year of receipt. Legacies are recognised when the charity has been notified of its legal entitlement and the amount due. Expenditure is included when it is incurred and is inclusive of irrecoverable VAT. Grants payable are payments made to the Guildford Cathedral in furtherance of the charitable objectives of the charity. Single or multiyear grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the charity. (g) Investments are shown at market value, including any interest accrued at the year end. Realised / unrealised gains are shown in the Statement of Financial Activities. (h) (i) (j) Unrestricted reserves are funds that can be used in accordance with the charitable objects at the discretion of the Trustees. The Charity s endowment is permanent. This is invested capital to be used to provide income for the charity which can only be spent as specified by the donor. Restricted reserves are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 7
THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2014 3. Investment Income Dividends and interest receivable 6,328 5,836 4. Costs of generating funds Social events 6,104 6,172 Salaries (including Employers NIC) 5,433 3,237 Treasurers Honorarium 1,750 1,750 Office Expenses 586 890 General Expenses 182 153 Investment management 930 942 Narthex 492 520 15,477 13,664 The charity pays the salary of one part time person employed by Dean and Chapter. 5. Costs in the furtherance of the objects of the Charity Grants made to Guildford Cathedral Stoles 700 400 Fabric Project 35,000 25,000 Education 380 Candles 519 Flowers 300 Deans Cope 3,500 35,700 30,099 During the year the charity agreed to make a grant of 35,000 to Guildford Cathedral for the Capital Appeal. 15,000 was paid to the Appeal during the year and the balance of 20,000 was paid in February 2015. No member of the Executive Committee nor any person connected with them has received or is due to receive any remuneration or reimbursed expenses for the year directly or indirectly from the Charity s funds. 6. Governance Costs Independent examiner s fees 1,060 1,130 8
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2014 7. Investments Market value at 1 January 2014 152,521 Additions at cost 28,751 Disposals at carrying value (33,796) Net gain 4,025 Market value at 31 December 2014 151,501 Of which : Listed investments 151,501 The following investments account for more than 5% of the listed investments Aviva Investors UK SVCS LTB 7.2% 7.0% N B Global Floating Rate 9.2% 9.7% New Capital Fund Management 6.8% 6.7% Twenty Four Income Fund Ltd 8.8% UK Commercial Property Trust Ltd 10.5% 5.2% International Public Partnership 5.5% HICL Infrastructure Co Ltd 6.8% 6.0% MK Government Stock 17/7/24 6.3% 8. Debtors Guildford Cathedral 196 Sundry Debtor PAX Travel 1,500 Prepaid cost of House of Commons Dinner 4,255 Gift Aid Claim 283 384 4,538 2,080 9. Creditors Creditors 1,364 Grants Fabric Project 20,000 Fundraising income in advance re: House of Commons Dinner 11,685 Accrued expenses 1,480 2,019 33,165 3,383 9
THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2014 10. a Restricted Funds At 1 January At 31 December 2014 Income Expenditure 2014 Arthur Mason Flower Fund income 1,385 483 1,868 Reginald D Boeg Legacy income 2,505 1,278 3,783 Grant Guildford Cathedral Cathedral Capital Appeal 6,921 6,921 3,890 8,682 6,921 5,651 10. b Endowment At 1 January At 31 December 2014 Movements 2014 Arthur Mason Flower Fund capital 9,972 223 10,195 Reginald D Boeg Legacy capital 25,348 37 25,385 35,320 260 35,580 Mr A.M. Mason bequeathed a legacy of 10,000 to The Friends of Guildford Cathedral expressing the wish that this legacy should be named The Arthur Mason Flower Fund and invested in Gilt Edged Securities and that the income be used to buy flowers for the Cathedral and not for any other purpose. Mr Reginald D. Boeg s bequeathed a legacy of 25,000 which must be retained and the income to be used for maintenance of the cathedral building. 11. Movement in Funds General Endowment Restricted Total Fund Fund Funds Funds Funds at 01.01.14 132,177 35,320 3,890 171,387 Movement in year (5,774) 260 1,761 (3,753) Funds at 31.12.14 126,403 35,580 5,651 167,634 12. Controlling party The charity has no controlling party. 10