statement of financial activities for the year ended 31...
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BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Annual Report and
Accounts for
Birmingham Cathedral
2016
The Cathedral Church of St Philip, Birmingham Colmore Row, Birmingham B3 2QB Tel: 0121 262 1840 Email: [email protected]
Website: birminghamcathedral.com Facebook: Birmingham Cathedral St Philip’s Twitter:
@bhamcathedral
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Birmingham Cathedral
Chapter Annual Report
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Letter from the Acting Dean
2016 was a year of coming and goings proving that
life never stands still in the life of Birmingham
Cathedral.
Being situated at the highest point in the city and surrounded by the ever-
growing business and commercial life of what is the youngest city in Europe
makes for a busy, exciting life.
2016 saw our Canon Liturgist, Janet Chapman move on back into parish life
to St Laurence Church in the diocese and the Dean, Catherine Ogle, prepare
to move to Winchester Cathedral to become Dean. Both played a major part
in making the cathedral ‘fit for purpose’ producing a reordered well-
functioning building and a place of welcome and a house of prayer at the heart
of the city. Their ministry in Birmingham is greatly appreciated, and we send
them to St Laurence and Winchester Cathedral with our prayers and best
wishes.
We continue our daily round of prayer each day for the world, the city the
church and many come in throughout the week to pray. Our visitors now
number in excess of 100,000 per year, with 20,000 pedestrians each day
walking through Cathedral Square.
The ministry of the cathedral is a team effort and couldn’t exist without the
committed and supportive staff of vergers, Administrator, communications,
education, heritage and office staff. On top of the weekly services, the
Wardens and Deputies, flower arrangers, bell ringers, those who regularly
clean and many others are involved in numerous extra services, memorials
and special occasions that are part of our broad ministry.
We look forward to a new year with new possibilities of connecting more
within the city and the Diocese, with the Good News of Christ. We look
forward to deepening our existing relationships, and being a beacon to the
Diocese for the renewed ‘Transforming Church’ strategy.
The Revd Canon Nigel Hand
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Report from the Cathedral Administrator
We end the year with a small financial in-year surplus of £4k in our
unrestricted funds against budget, which is an incredibly positive result in a
year where we absorbed the £58k cost of new Cathedral boilers which hadn’t
been budgeted for; we also end the year much warmer than we started!
Financially, we were also able to meet the small shortfall in the Internal
Works Project. This positive result is due to a combination of good
stewardship of our resources, consistent and generous support through
planned giving, and financial discipline. 2016 has been a year of quiet
consolidation, reflecting retrospectively on a year of huge activity in 2015, and
considering opportunities to grow and nurture the seeds of that fruitful year.
2016 saw the completion of the Internal Works project, which began back in
May 2015. The culmination of the project was the installation of new
electronic glass doors in the main entrance porch. The doors, whilst offering
much easier access for all, also offer a clear line of sight into the Cathedral; a
welcoming invitation to enter the building.
Our relationships and partnerships within the Diocese and City continue to
flourish. The St Basils Sleep Out was a hugely successful night, and one of the
highlights of 2016 with 650 people sleeping out in Cathedral Square; a
powerful and poignant evening. Our relationship with local partners (Colmore
BID, WM Police and BCC Parks Department), have ensured consistent and
careful custodianship of Cathedral Square for the benefit of the tens of
thousands of people who use the space daily.
The Cathedral Staff Team continues to grow, and are a daily blessing to the
ministry of our Cathedral. We have recruited into 3 new lay roles, increasing
the capacity of the team; Stephen Brooker joined us as Facilities Manager;
Louisa Harrop joined as Education Officer and Ailsa Lightfoot joined as
Administrative Assistant. Ashley Wagner also joined the music department as
Organ Scholar. I wish to express my sincere gratitude to the whole lay staff of
the Cathedral, together with our marvellous volunteers, for the grace,
commitment and passion that each bring to their role. Our 2016-2020
Strategic Plan has been instrumental in highlighting the distinct areas where
our lay team are bringing their gifts to bear with excellent results.
“Each of you should use whatever gift you have received to serve others, as faithful
stewards of God’s grace in its various forms”
Peter 1 4:10
Anna Pitt
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Main Priorities for 2016
2016 was an opportunity to embed the grounding principles of our Strategic Plan into the
daily life and rhythm of the Cathedral:
Living Worship - Growing Disciples - Connecting Communities
These principles have shaped the strategic and operational decision-making, and have added
structure to the growing partnerships which have been nurtured.
Living Worship
‘Mindful of the invitation of our Patron Saint to ‘Come and See’, we seek to offer a growing
diversity in worship offering rich opportunities for encounter with God, for all ages.’
Take the opportunity to respond to ‘missional moments’ of WW1 Anniversary
(Commemoration of the Battle of the Somme) and Queen’s 90th Birthday
Participate in the National ‘Thy Kingdom Come Initiative’; continued clergy involvement in
‘Pray for the City’; diverse spread of visiting preachers; engaging with unique worship
opportunities such as hosting Roger Hiorns’ ‘Lying Down Evensong’
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Growing Disciples
‘We seek to grow in number and in depth of discipleship in order to witness to Christ more
effectively’
We will employ a Cathedral Education Officer, continue to grow the number of Visitors’
Chaplains and volunteers; Annual Pentecost Birthday Party for school children; Annual
Community Day; Support for Christian Aid, St Basils, and other charities; continued ministry
of healing; continued engagement with and promotion of heritage, enriching the visitor
experience.
Connecting Communities
‘Birmingham is the place ‘where the world meets’ and, as Archbishop Justin memorably told us in
2015, Birmingham has perhaps a unique opportunity to show the world how people can live
together in peace’
We will work towards establishing the Cathedral as a forum for Public Theology; continue
collaborative working with Diocesan Directors and parishes; hosting charitable events in the
Cathedral and on Cathedral Square; work with Colmore BID to create safe and welcoming
space in Cathedral Square; deepen partnerships with Heritage organisations; Continue to
develop ‘Something Good’ and the work of Cathedral ARTS Group.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Good Order
‘We seek to achieve good order in the governance of the Cathedral to reflect the good order of
God’s creation and to enable the Cathedral to model good working practices, good working
relationships for staff, volunteers and good communications fostering mutual understanding and
respect.’
Cathedral Safeguarding Audit; Annual review of Chapter policies; regular review of staff
terms and conditions; review and benchmarking of lay salaries; Clergy participation in
national cathedral life Conferences and AEC; establish a new Cathedral database.
Care of our Building and Environs
‘We strive for the highest standards of care as an expression of our faith and worship’
Complete the second phase of internal restoration works (new glass doors, porch mat,
entrance furniture); commission new candle stand; review liturgical furniture; Progress the
implementation of a planned maintenance programme; replacement of boiler, update of
security systems; appointment of a Cathedral Facilities Manager; review shop/welcome desk.
Sustainable Financial Growth
‘We will steward our resources prudently and ethically, with the intention of achieving sustainable
growth to resource growing ministry’
Support the work of the stewardship committee; update legacy policy and information;
explore ways of generating further generating income from fee paying events and
commercial income; increase in grant income; purposeful management of investment and
review of investment policy; review St Philip’s House management and income; review
regular contractors;
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
A Year in View: Highlights of 2016
Mothers’ Union Street Party - to
celebrate 140 years of Mothers’
Union/Queen’s 90th birthday. Red, white
and blue theme. Entertainment for
children and families, picnic facilities and
fundraising activities.
Malawi Fundraising Fair – Event
on Cathedral Square organised by
the Cathedral community to raise
money for our partnership with
Malawi
In:Site Craftspace - Annual
festival of graduate creativity on
Cathedral Square over five days
involving 15 new graduates. Each
day graduates made bespoke
work responding to the site and
its heritage.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Aston University 50th Year
Commemoration Service - A celebration that
marked the 50th anniversary of the University of
Aston and Rededication. The event brought
together current students and former academics.
The Choral Eucharist on Palm Sunday was streamed live
by the Church of England, and the live broadcast of
Choral Evensong on BBC Radio 3 in October received
many complimentary comments from listeners.
Over 600 people slept out in Cathedral
Square to raise nearly £140,000 for St
Basils, the West Midlands youth
homelessness charity. The cathedral
building was open throughout the night
and hosted a candlelit carol service at
midnight. The Sleep Out was returning
to its original home in Cathedral Square
after outgrowing its previous location.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
To celebrate Birmingham Poppy Day, The Band of The Royal Logistics Corps played on
Cathedral Square and around the city, raising £43,600 for the Royal British Legion.
As part of Birmingham’s Chinese New Year
celebrations, British-Chinese artist Aowen Jin created
‘Midlight,’ a group of magical sound-reactive light
boxes, which responded to a special service
conducted in the dark in both Chinese and English.
Revd Chris Thorpe and artist Jake Lever led a quiet
day under the Soul Boats installation. Participants
used words, music, creative activity and silence to
reflect on their life journey, exploring the “storms”
that they encounter, the “vessel” that is their own
life, and the “voyage” that they were embarking
upon.
As part of International Dance Festival
Birmingham, Cathedral Square played host
to ‘Phone Box’, an acrobatic dance
performance in and on a vintage red
telephone box.
Cathedral Square hosted performances by
‘The Busquitos’ and ‘Saxitude’ as
part of the Birmingham and Solihull Jazz and
Blues Festival.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
.
The ornate brass cross made by John
Paul Cooper, a Birmingham jeweller, has
been restored and re-displayed in the
South Aisle. The cross was made to mark
the change from parish church to cathedral
in 1905 and its re-display was made
possible with the generosity of Hortons’
Estate.
The third and final Tercentenary Festival of
Voices was held at the cathedral in February.
The event explored the heritage of the
cathedral through music, word and
performance. This wonderful, celebratory
evening compered by Canon Janet & Jane
McArdle even featured the choir singing a
Beatles medley!
The Pride of the Place by Canon Dr Terry
Slater was published and launched, at the
cathedral in 2016. The comprehensive, fully
illustrated book examines the history and
significance of St Philips since 1715. Terry
entertained a packed cathedral with a lively
talk on the launch evening.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
‘Wonder’ Children’s Christmas Craft Event
was a multi-sensory event, for children and families in
collaboration with the Electric Cinema. The
Cathedral was transformed so that families could
enjoy and engage with a range of fun activities such
as den making, whilst encouraging them to reflect
upon the real meaning of Christmas
‘Growing Hope’: Daffodil Bulb Planting by local school
children in Cathedral Square. ‘Growing Hope’ is a project
exploring hope, one of the themes of the Easter story,
organised by Birmingham Cathedral and the Church of
England - Birmingham. Children planted daffodil bulbs in
Cathedral Square in mid-October, and will then return in
the spring to see them bloom in the shape of a cross.
The Advent pilgrimages, which start from St
Martin’s in the Bullring, allow children from
Church of England Primary schools the
opportunity to reflect upon the season of Advent
from a Christian perspective. The pilgrimage
enables the children to consider the increasingly
secular portrayal of Christmas, as they travel
through the city centre. They end their journey at
the Cathedral, where they are able to stop and
reflect on what they have seen
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
School visits
The Education team have enjoyed welcoming a large number of schools to visit the
Cathedral, The visits provide children with the opportunity to learn about what it means to
be a Christian. They also learn about what makes the Cathedral a special Christian place of
worship and find out about the significance and symbolism of the windows.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Relationships
During 2016, the Cathedral deepened relationships in a number of key areas:
• Education; the appointment of a Cathedral Education Officer has allowed for
increased partnership working with Diocesan education team, collaboration and
learning with other Cathedral education Departments and increasing provision
for working with schools within the Diocese
• Security and Public Space; the appointment of a Cathedral Facilities Manager has
allowed for effective day to day management of Cathedral Square through
partnership working with West Midlands Police; Colmore BID; Anti-terrorism
officers and HOST car team.
• Civic Life; the Cathedral continues to host key civic events, offer chaplaincy to
the High Sheriff, and work closely with the City Council on delivery of key high
profile events (such as Commemoration of the Battle of the Somme).
Volunteers
Birmingham Cathedral operates thanks only to the significant input of volunteers in terms of
energy and time. Thousands of hours of committed ministry across the spectrum of
Cathedral life are volunteered regularly. In 2016 we added capacity with additional
volunteers leading Heritage tours and offering support with cleaning the Cathedral.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Inventory
There were no additions to the Cathedral inventory during 2016. Chapter disposed of two
noticeboards, a pew and a disused altar rail.
Fabric Repairs
In 2016 we completed Phase 2 if the Internal works project, which encompassed the long-
awaited updates to the SW entrance porch.
Following the failure of both Cathedral boilers in December 2015, three replacement
boilers were fitted in February 2016.
Cathedral burglar and fire alarm systems were updated and upgraded to offer a full
comprehensive system.
Fundraising
In 2016 Birmingham Cathedral did not actively fundraise for a particular project. Following a
period of extensive fundraising in 2014/2015, from both external funders and Cathedral
congregations, Chapter took the decision to delay the appointment of a Cathedral
Fundraiser, preferring to prioritise ‘project fundraising’. 2016 was a year of consolidation in
terms of relationships, staff team and governance. The unrestricted income of the Cathedral
was sustained by continued support by way of planned giving.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Future Plans
In 2017 Birmingham Cathedral will seek to continue to work towards the
current 5 year strategic plan. Significant priorities for 2017 include;
• Appointment of a new Dean, following the resignation of Dean Catherine Ogle.
• The launch of ‘Divine Beauty’ a project to restore and clean the Burne Jones and
Hardmann Cathedral windows.
• Embedding a Planned Preventative Maintenance Plan covering all regular servicing
and contractors
• Appointment of a Cathedral Architect
• Increasing the Capacity for working space for staff in the Cathedral and upgrading
the facilities in Matthew Room. Review of Archive Room and undercroft facilities and
storage
• Undertake a Music review to reflect on and inform the Cathedral’s ongoing music
strategy.
• Appointment of new Cathedral Investment Managers following a thorough tender
process
• Tender process to appoint new Cathedral auditors. (having had a very successful
three year relationship with Dains LLP, a potential conflict of interest forces a retender).
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Structure, Governance & Management
• Birmingham Cathedral’s governing document is the Constitution and Statutes,
incorporating the Cathedral Measure Act 1999. The most recent review and update of the
statutes took place in 2015.
• Birmingham Cathedral is an ecclesiastical corporation. The Cathedral has a charitable
purpose as defined in the Cathedrals Measure 1999. As an ecclesiastical corporation the
Cathedral is excluded from the Charities Act 2011 and not regulated by the Charity
Commissioners. However the Cathedral does qualify as a charity for taxation purposes.
Whilst not being registered with the Charity Commission, Chapter has due regard for the
guidance set down by the Commission.
• The Cathedral is Mother Church to the Diocese of Birmingham, a Diocese of nearly
200 parish churches. Cathedral staff share office space at One Colmore Row with Diocesan
colleagues, and share some administrative functions. This makes for effective and dynamic
working relationships, and the Cathedral maintaining a strong presence in the Diocese.
• ‘Body Corporate’ of the Cathedral consists of Cathedral Chapter,
Cathedral Council and Cathedral College of Canons. Cathedral Chapter also has
a Finance & Risk Sub-Committee. Cathedrals are run by their Chapters, which
have the task of administering the affairs of the Cathedral:
• Birmingham Cathedral Chapter is formed of both clergy and lay people, who act as
fiduciaries and manage the cathedrals’ affairs. The Dean and both Residentiary Canons are
members, along with four members nominated by the Cathedral Congregation and
appointed at APCM and two Bishop’s appointments (Chapter currently carries a vacancy for
a third Bishop’s appointment). The Chapter is chaired by the Dean or Acting Dean in
Interregnum.
o Chapter have chosen to send all new Chapter appointments on a residential training
course specifically for Chapter members run by the Association of English Cathedrals.
o Chapter’s Schemes of Delegation; Delegated Authority from Chapter to Director of
Resources (Cathedral Administrator); and Delegated Authority from the Director of
Resources to other budget holders, are reviewed annually.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
• Birmingham Cathedral Council meets three times a year to further and support the
work of the cathedral and advise the Chapter. Membership of Cathedral Council consists of;
The Dean, two nominated Chapter Members, two members of the College of Canons,
three lay members representing the interests of the Cathedral congregations, one area dean
from a deanery within the diocese, two lay people appointed by Bishop’s Council, one
person appointed by Birmingham Churches Together, a maximum of six people appointed
by the Bishop. The Council is chaired by Andrew Lancaster, a lay member of Council
appointed by the Bishop David. Bishop David can attend and speak at the Council although
he is not a member.
• The College of Canons consists of the Dean and Residentiary Canons, Bishop Anne,
The Venerable Hayward Osborne (Archdeacon of Birmingham), The Venerable Simon
Heathfield (Archdeacon of Aston) and honorary and lay canons. The College meets once a
year to consider cathedral affairs. It also has the task of electing a new bishop in accordance
with the Appointment of Bishops Act 1533.
• During 2016 there were two clergy resignations. In July 2016, Canon Janet Chapman
(Canon Liturgist) left the Cathedral to take the role of Rector of Northfield (Birmingham
Diocese). In September 2016 Dean Catherine Ogle announced her resignation (effective
from February 2017) to take the role of Dean of Winchester Cathedral.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Financial Review
2016 was always planned to be a year of quiet consolidation and this has been reflected in
our finances, A 2016 headline income figure of £821,807, showing a fall of £799,989 year on
year reflects the contrast between 2016 and the prior financial year. The prior year (2015)
was a year of exceptional activity with the Tercentenary celebrations and major investment
in the Internal Works project - all funded by one off restricted use grants, which can distort
the underlying financial picture. The 2016 finances reflect a year of stability, despite an
emergency replacement of our boiler in January 2016 at the cost of some £58,000.
Our single largest source of income is from our investment and property portfolio. Against
a backdrop of global economic uncertainty, post both the Brexit and US Presidential
elections, the investment income returns from this portfolio have marginally fallen year on
year. However, our core income from congregational giving, donations from visitors, fees
for special services and other trading activities has been pleasingly consolidated at £237,000
compared to £216,000 in 2015. This reflects the ongoing commitment to stewardship and
sacrificial giving amongst the congregation; together with the investment in a Cathedral
Facilities Manager supporting the day to day function, visitor experience and service delivery
of the Cathedral. The Church Commissioners provide for the stipends of the Dean and the
two Residentiary Canons and the Cathedral also receives a grant towards the cost of the lay
salaries.
We are immensely grateful to the Church Commissioners, All Churches Trust, and the
many grant making trusts and individual donors who share our mission vision.
The major single areas of expenditure in 2016 relate to the completion of the Internal
Works Project at £XXXX and the boiler replacement of £58,000. The small growth in the
cathedral staff team as reported in the Cathedral Administrator’s report has been supported
in part by designated and restricted income funds given specifically for the purposes of the
Cathedral’s day to day music and education operations. The Cathedral furthers its missional
outreach by careful stewardship of restricted donations– with a careful “balancing act”
between activities now and in the future.
The net overall deficit of £90,287 for the year, before taking into account the net gains on
the revaluation of the investment portfolio at 31 December 2016, reflects the use of
donations/ grants generated in the prior year to complete the Tercentenary activities and
internal works projects. Taking into account the investment gains, we finished 2016 with a
net increase in funds of £281,195. It was also pleasing to note that our “in-year trading
position” on our unrestricted fund was £4,466 – this is the fifth consecutive year we have
done so and after absorbing the cost of the replacement boiler.
Balance Sheet position
Chapter consider that the balance sheet , together with the notes to the financial
statements show broadly that the restricted and endowment funds are held in an
appropriate mix of investment and current assets given the purposes for which the funds
are held. While the net assets at the balance sheet date totalled £6,668,887 (2015:£
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BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016 6,287,492), it must be remembered that included in this total are property and investments
that are held within the endowment fund, the capital of which cannot be spent. The
endowment fund’s value amounted to £6,592,610 (2015:£6,235,497). Much of the remainder
of the assets shown in the balance sheet are held in restricted funds and cannot be used for
the general purposes of the cathedral. There is currently a historical deficit on the
cumulative unrestricted fund. Chapter have in place robust systems for financial governance
and monitoring to guard against any future scenario which may result in increased deficit on
the unrestricted fund. Chapter are pleased to note that the generation of an unrestricted
fund surplus of £4,466 in the year has aided the reduction of the deficit to £254,810 as at 31
December 2016
Factors that may impact on future financial performance
There are a number of factors which can impact on the Cathedrals’ ability to meet its
objectives which are outside its direct control. As is the case for all charities with historical
endowment, the Cathedral is vulnerable to changes on the value and returns upon its
investments. This is mitigated by employing specialist fund managers and advisors to help
develop an appropriate investment policy- the Cathedral is in the process of re tendering
for investment management and advice services for implementation during 2017.
The ability of the Cathedral to generate other regular income sources such as event/ special
service hires and congregation giving and donations has a significant impact on the delivery
of the Cathedral’s missional objectives. These factors are managed by building close
partnerships with both Cathedral users and the congregation itself as lifelong disciplines of
Christ.
Reserves policy
Free reserves are maintained for the following purposes:
• To avoid bank borrowing if there is a temporary shortfall in income/ or a surge in
expenditure
• To provide for emergencies
The reserves policy of the Cathedral is formulated in line with recommendations of the
Charity Commission of England and Wales. The basic policy statement is as follows:
“The Cathedral Chapter aims to maintain the equivalent of at least 3 months operating
expenditure in cash and readily liquid assets in the general unrestricted fund. This excludes
all designated funds and loans. The policy is to be reviewed on an annual basis”
The Cathedral Chapter recognises that due to difficult past economic conditions, the
Cathedral continues to fund itself with a historical net deficit on its unrestricted funds. This
position is being actively remedied by Chapter by robust monitoring of unrestricted
expenditure. Chapter, in conjunction with the Church Commissioners is also planning to
undertake a forensic review of its endowment fund origin and historical record keeping
during 2017 to ascertain whether all such funds that are “currently classified” as permanent
endowment funds do indeed meet that definition.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Designated funds
The Cathedral may with the approval of Chapter, designate additional unrestricted reserves
to be retained for an agreed purpose where this is considered prudent. Such designated
reserves are reviewed on an annual basis and returned to the general fund in the event that
the purpose of their destination is no longer considered adequate for their retention. A
description of each reserve with the intended use of the reserve is set out in note 14. The
most significant designated reserve is the Maintenance Fund which amounts to £10,000 as at
31 December 2016. This is part of a planned saving programme towards future major
maintenance expenditure.
Restricted and endowment funds
As set out in note 14 the Cathedral holds and administers a number of restricted and
endowment funds. As at 31 December 2016 restricted funds totalled £310,173 (2015:
£335,556) and endowment funds totalled £6,592,610 (2014:£ 6,235,497). Neither are
available for the general purposes of the Cathedral
Investments powers and policy
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; and
• 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.
The Cathedral’s non-property investments are held with Harris Allday and CCLA. Harris Allday
manages a portfolio on a discretionary basis, with the remaining funds within CCLA on a self-
managed basis.
Management of the Cathedral’s investments is overseen by the Chapter’s Finance & Risk
Committee, which includes members appointed for their relevant expertise and experience.
The relationship with the Cathedral’s investment advisors is governed by a Statement of
Investment Principles. The agreed investment objective is the creation of sufficient income
to enable the Cathedral to carry out its purposes effectively and without interruption, the
level of income to be agreed from time to time with the Chapter on the advice of the
Finance & Risk Committee. A further objective is the maintenance and long-term
enhancement of the capital, and the income derived from this in real terms. In October
2011 the Chapter resolved that to the extent that the Cathedrals Measure of 1999 requires
it, the Chapter's policy will be to repay any borrowings from endowment funds as soon as it
is prudently possible to do so.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Principal Risks and Uncertainties
Chapter reviews the Cathedral Risk Register on a quarterly basis. Reporting to Chapter by
the Finance & Risk Committee will include a consideration of risks (financial/operational/
reputational damage) which could impact seriously on the cathedral’s operation and
development. The Finance & Risk subcommittee oversees the implementation of the
recommendations arising out of this review process.
The risk register is populated with five areas where the risk of either failure to act or the
impact of the events could be ‘high’; Operational Risk, Financial Risk;
Governance/Compliance Risk; Reputational Risk; Legal/ Regulatory Risk.
Area Mitigation strategies
Operational Risk: Unidentified Maintenance
Issue resulting in unbudgeted expenditure • Implementation of Cathedral 20yr
Planned Preventative Maintenance
Scheme
• Implementation of Annual Maintenance
fund (Designated Fund)
• Cathedral Facilities Manager reviewing
Contractors and Service agreements to
ensure thorough and robust scheme of
inspections and reporting.
Financial Risk: Fraud/Error leading to
financial losses • Delegated Authority and controls in
place
• Rigorous cash handling procedure in
place
• Regular review of management accounts
Operational Risk: Threat to Staff and
Building from a Terrorist attack • Working with local Counter-Terrorism
Officers – training for all staff
• Requirement for a Disaster Recovery
Plan
Legal & Regulatory Risk: Safe Storage of
Data. Leaked personal financial information
leading to reputational damage
• New Cathedral Database
• New Diocesan CRM Database
• Close working with PC Support to
move all Cathedral records to cloud
based storage and Drop Box sharing
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Remuneration of key management personnel
Emoluments of higher paid lay employees are determined by Chapter with reference to
remuneration and salary benchmarking and consequent recommendation of changes.
Chapter undertook a thorough review of lay salaries during 2016, and adopted clear plans
to bring all lay salaries in line with market rates. The emoluments of Cathedral clergy are set
by and funded by the Church Commissioners on a national basis.
Going concern
After making enquires, Chapter are satisfied that the Cathedral has adequate resources to
continue to operate as a going concern for the foreseeable future and have prepared the
financial statements on that basis.
Statement of Responsibilities of the Chapter
Chapter have overall responsibility for ensuring that the cathedral has an appropriate system
of controls, financial and otherwise. The systems of internal control are designed to provide
reasonable, but not absolute assurance against material misstatement or loss. They include:
• An annual budget approved by Chapter;
• Regular consideration of both financial results and other performance indicators;
• Delegation of authority and segregation of duties.
Statements as to disclosure of information to auditors
Chapter have taken all the necessary steps to make sure that they are aware of any relevant
audit information and to establish that the auditors are aware of that information.
As far as Chapter are aware, there is no relevant audit information of the auditors are
unware.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Chapter Members
The Very Revd Catherine Ogle
The Revd Canon Janet Chapman (until July 2017)
The Revd Canon Nigel Hand
Sandra Bailey
Helen Blundell
Judith Whalley
Richard Brooks
Andrew Harrison
*Chair of Finance & Risk Committee
Sue Davis
Members of Finance & Risk Committee
Andrew Harrison
*Chair
The Very Revd Catherine Ogle
The Revd Canon Janet Chapman (until July 2017)
Sue Davis
Melanie Crooks
Anna Pitt
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Members of Fabric Advisory Committee
The Very Revd Catherine Ogle
Canon Dr Terry Slater
*Chair
Robert Kilgour
Richard Morriss
Dr Paul Spencer-Longhurst
Kristina Williamson
Rita McLean (from April 2016)
John Somers (from April 2016)
James Whiteman (until February 2016)
Clive England (Cathedral Architect in attendance)
Mary Trumper (Secretary, not voting)
Cathedral Administrator (Director of Resources)
Anna Pitt
Director of Music
Canon Marcus Huxley
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Auditors
Dains LLP
15 Colmore Row
Birmingham
B3 2BH
Bankers
The Royal Bank of Scotland PLC
79/83 Colmore Row
Birmingham
B3 2AP
Relationship Manager: Chris Richards
Investment Managers
• EFG Harris Allday
Church Mews
Ombersley
Worcestershire
WR9 0EW
• CCLA Investment Management Ltd
Senator House
85 Queen Victoria Street
London
EC2V 6DZ
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Legal Advisors
• Shakespeare Martineau
No 1 Colmore Square
Birmingham
B4 6AA
• Keelys LLP
28 Dam Street
Lichfield
WS13 6AA
Cathedral Architect
Clive England
Thomas Ford & Partners
177 Kirkdale
London
SE26 4QH
Archaeologist
Richard Morriss & Associates
Bromlow House
Upper Bromlow
Minsterley
Shropshire
SY5 0EA
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Commercial Property Management
CBRE
55 Temple Row
Birmingham
B2 5LS
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Birmingham Cathedral
Chapter 2016 Accounts
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
2016 Accounts
Unrestricted Funds Restricte
d
Endowme
nt
Total Total
Not
es
General Designat
ed
Funds Funds 2016 2015
£ £ £ £ £ £
Income & Endowments
From:
Donations & Legacies 146,620 - 7,413 - 154,033 163,529
Grants in support of mission 21,795 - 386,428 - 408,223 1,122,68
4
Charges and fees arising in the
course of mission
9,314
1,000
1,073
-
11,387
9,677
Trading & fundraising 45,521 - 4,352 - 49,873 37,474
Income from property &
investments
191,042
-
6,981
-
198,023
213,037
Other income 268 - - - 268 75,395
________
_
________
_
_______
__
_________ _______
_
_______
_
Total Income 2 414,560 1,000 406,247 - 821,807 1,621,79
6
________
_
________
_
_______
__
_________ _______
_ _______
_
Expenditure On:
Raising Funds 59,383 6,539 18,299 - 84,221 76,353
Ministry 191,575 345 204,121 - 396,041 431,846
Cathedral & precincts upkeep 123,942 - 171,597 - 295,539 1,111,64
2
Education & outreach - 4,344 1,804 - 6,148 -
Community, parish &
congregation
45,221 - 74,922 - 120,143 281,903
Other Expenditure 10,002 - - - 10,002 4,121
________
_ ________
_ _______
__ _________ _______
_ _______
_ Total Expenditure 4 430,123 11,228 470,743 - 912,094 1,905.86
5
Net incoming/(outgoing)
resources before
investment gains
(15,563)
(10,228)
(64,496)
-
(90,287)
(284,06
9)
Net gains/(losses) on
investments
5,6,7 - - 5,586 365,896 371,482 (4,202)
________
_ ________
_ _______
__ _________ _______
_ _______
_
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2016
Net Income/(Expenditure) (15,563) (10,228) (58,910) 365,896 281,195 (288,27
1)
Gross transfers between
funds
14 20,029 (44,774) 33,527 (8,782) - -
Actuarial gains/(losses) on
defined benefit pensions
schemes
-
-
-
-
-
6,000
Other gains/(losses) - - - - - -
________
_ ________
_ _______
__ _________ _______
_ _______
_ 6,000
Net movement in funds: 4,466 (55,002) (25,383) 357,114 281,195 (282,27
1)
Funds brought forward (259,276) 75,716 335,556 6,235,496 6,387,49
2
6,669,76
3
________
_ ________
_ _______
__ _________ _______
_ _______
_ Funds carried forward (254,810) 20,714 310,173 6,592,610 6,668,68
7
6,387,49
2
=======
=
=======
=
=======
=
======== ======
=
======
=
BIRMINGHAM CATHEDRAL CHAPTER BALANCE SHEET For the year ended 31 December 2016
Unrestricted Funds Restricted Endowment Total Total
Notes General Designated Funds Funds 2016 2015
£ £ £ £ £ £
FIXED ASSETS
INVESTMENT ASSETS
Property 6 - - - 1,100,000 1,100,000 1,100,000
Investments 7 - - 141,531 3,770,196 3,911,727 3,554,046
_________ _________ _________ _________ ________ ________
- - 141,531 4,870,196 5,011,727 4,654,046
_________ _________ _________ _________ ________ ________
NON-INVESTMENT ASSETS
Property 8 - - - 1,165,000 1,165,000 1,165,000
Equipment 9 1,979 - 7,771 - 9,750 8,817
_________ _________ _________ _________ ________ ________ 1,979 - 7,771 1,165,000 1,174,750 1,173,817
_________ _________ _________ _________ ________ ________ TOTAL FIXED ASSETS 5,827,863
CURRENT ASSETS
Stock - - - - - 1,810
Debtors 11 42,049 - 275 - 42,324 155,042
Cash at bank and in hand 159,297 20,714 160,596 411,549 752,156 692,182
_________ _________ _________ _________ ________ ________ 201,346 20,714 160,871 411,549 794,480 849,034
LIABILITIES DUE WITHIN
ONE YEAR
Creditors 12 (152,270) - - - (152,270) (109,405)
_________ _________ _________ _________ ________ ________ NET CURRENT ASSETS 49,076 20,714 160,872 411,549 642,210 739,629
Interfund transfer (145,865) - - 145,865 - -
_________ _________ _________ _________ ________ ________ TOTAL ASSETS LESS
CURRENT LIABILITES
(94,810)
20,714
310,173
6,592,610
6,828,687
6,567,492
LIABILITIES DUE AFTER
ONE YEAR
Loans 13 (160,000) - - - (160,000) (180,000)
_________ _________ _________ _________ ________ ________ Net assets excluding pension
liability
6,287,492
Defined benefit scheme liability -
_________ _________ _________ _________ ________ ________ TOTAL NET ASSETS (254,810) 20,714 310,173 6,592,610 6,668,687 6,387,492
======== ======== ======== ======== ======= =======
THE FUNDS OF THE CATHEDRAL
Endowment Funds 6,592,610 6,592,610 6,235,496
General Funds (254,810) (254,810) (259,276)
Designated Funds 14 20,714 20,714 75,716
Restricted Funds 14 310,173 310,173 335,556
_________ _________ _________ _________ ________ ________ TOTAL CATHEDRAL FUNDS (254,810) 20,714 310,173 6,592,610 6,668,887 6,387,492
======== ======== ======== ======== ======= =======
These financial statements were approved by the Chapter and signed on their behalf on ___________________________2017
The Rev’d Canon Nigel Hand Andrew Harrison
Acting Dean Chair of Finance and Risk Committee
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Total
Total
2016 2015
£ £
Cash flows from operating activities:
Net cash provided by/(used in) operating activities (103,210) (730,265)
Cash flows from investing activities:
Rents received 24,946 52,000
Investment income received 146,023 161,662
Interest & charges paid - (149)
Proceeds from the sale of property, plant & equipment - -
Purchase of property, plant & equipment (1,587) (1,006)
Proceeds from the sale of investments 587,302 807,537
Purchase of investments (573,500) (628,641)
___________ __________
Net cash provided by/(used in) investing activities 183,184 391,403
Cash flows from financing activities:
Repayments of borrowing (20,000) -
Cash inflows from new borrowing - 200,000
Receipt of endowment - -
____________ ___________
Net cash provided by/(used in) financing activities (20,000) 200,000
Change in cash & cash equivalents in the reporting period 59,974 (138,862)
Cash & cash equivalents at the beginning of the reporting period 692,182 831,044
Cash & cash equivalents at the end of the reporting period 752,156 692,182
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Total Total
2016 2015
£ £
Net income/(expenditure) for the reporting period (90,287) (284,069)
Adjustments for:
Depreciation charges 654 599
Income added to endowment capital - -
Income from property & investments (198,023) (213,038)
Interest payable 7,340 149
Loss/(profit) on the sale of fixed assets - -
(Increase)/decrease in stocks 1,810 901
(Increase)/decrease in debtors 139,771 (103,436)
Increase/(decrease) in creditors 35,525 (88,746)
Non-cash movement - (46,625)
___________ __________
(12,923) (446,196)
__________ __________
Net cash used in operating activities (103,210) (730,265)
========= =========
Analysis of cash & cash equivalents Total Total
2016 2015
£ £
Cash in hand/at bank 19,496 18,933
Cash held on deposit 732,660 673,249
Notice deposits (less than 3 months) - -
Overdraft facility repayable on demand - -
___________ ___________
Total cash & cash equivalents 752,156 692,182
========== ==========
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
1. ACCOUNTING POLICIES
Basis of accounting
The financial statements are prepared in accordance with the provision of the February 2015
Regulations on Accounting and Reporting by English Anglican Cathedrals prepared for the Association
of English Cathedrals and specified by the Church Commissioners under Section 27 of the Cathedrals
Measure 1999. The 2015 Regulations take in to consideration the requirements of the Statement of
Recommended Practices for Charities (SORP 2015) and applicable accounting standards (FRS102).
The financial statements are prepared under the historical cost convention as modified by the
revaluation of investments and certain properties.
Following transition to FRS 102 for the first time in 2015, all of the accounting policies have been aligned
with the new accounting standard as it applies to Cathedrals. The principle accounting policies and
estimation techniques are as follows:
Fund accounting:
The Chapter maintains various types of funds as follows:
Endowment funds:
Endowment funds represent grants, donations and legacies received where the donor has stipulated
that the income may be used for general purposes but the capital must be retained.
Restricted funds:
Restricted funds represent grants, donations and legacies received which are allocated by the donor for
specific purposes.
Unrestricted funds:
Designated funds are amounts which have been put aside out of unrestricted funds at the discretion of
the Chapter for specific purposes.
Undesignated funds represent unrestricted income which is expendable at the discretion of the Chapter
in the furtherance of the objects of the Cathedral Chapter. Such funds may be held in order to finance
both working capital and capital investment.
Tangible fixed assets:
In accordance with FRS 102 investments properties are carried at their fair value and this is considered
by Chapter annually and the aggregate surplus or deficit is recognised in the Endowment Fund. The
investment property was last professionally valued as at December 2015, the next professional valuation
of the property is due at December 2020. No depreciation is provided on investment properties.
Non-investment properties relate to clergy housing. Previously these were carried at market value
based on an external professional valuation every 5 years. In the interim period Chapter reviewed the
carrying valuation of the properties for impairment by reference to the Nationwide House Prices
Indices. Depreciation is not charged on the grounds of immateriality. Upon adoption of SORP 2015
(FRS 102) Chapter elected under the transitional rules to adopt the previous valuation of the properties
as deemed cost. The properties are subject to a quinquennial maintenance programme and maintain a
high residual value.
Depreciation has been provided on office equipment in the first year. Larger items will be depreciated
over the life of the asset, as assess by Chapter members.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
The Cathedral building and the inventory as heritage assets
Under S13(1) of the Care of Cathedrals Measure 1990, Cathedrals are required to keep an inventory
of items owned by the Cathedral that are of architectural , archaeological, artistic or historic interest.
The Measure also issues strict guidelines about the acquisition and disposal of such assets.
No value is attributed to these assets on the balance sheet in accordance with section 7.2.2 of the
Accounting and reporting Regulations for English Anglican Cathedrals. The Chapter have further
considered the requirements of FRS 102, which postdates the Regulations and are of the opinion that
the policy is compliant with this standard on the basis that information on cost or valuation of the assets
is not available and could not be obtained at reasonable cost.
The Cathedral churchyard
The historic churchyard of St Philip’s is the Cathedral precinct under the Care of Cathedrals Measure
1990, and like the Cathedral building is of archaeological and historic interest. No value has been
attributed in the balance sheet to the churchyard or any of the items that form part of it.
No value is attributed to these assets on the balance sheet in accordance with section 7.2.2 of the
Accounting and reporting Regulations for English Anglican Cathedrals. The Chapter have further
considered the requirements of FRS 102, which postdates the Regulations and are of the opinion that
the policy is compliant with this standard on the basis that information on cost or valuation of the assets
is not available and could not be obtained at reasonable cost.
Investments
Investments are stated at market value. Realised gains or losses are recognised in the Statement of
Financial Activities when investments are sold. Unrealised gains and losses are accounted for on
revaluation of investments at the year end.
Stocks
Stocks are stated at the lower of cost and net realisable value and represent goods held for resale in
the Cathedral shop.
Income
All income is recognised in the Statement of Financial Activities when the Cathedral is legally entitled
to them as income or capital respectively, ultimate receipt is probable and the amount to be recognised
can be quantified with reasonable accuracy. Where a claim for repayment of income tax has or will be
made, such income is grossed up for the tax recoverable.
Grant income is accounted for when the amount can be measured reliably and there is clear entitlement
and certainty of receipt. Grants received which are subject to pre-conditions for entitlement or use
specified by the donor which have not been met at year end are included in creditors.
Donations:
Donations and all other receipts from fundraising are reported gross and the related fundraising costs
are reported in other expenditure.
Rent and Investment income:
Rent and investment income is accounted for when receivable. Tax recoverable relating to investment
income is accounted for in the same period as the related income.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Expenditure
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Cathedral
pay out resources. Expenditure is included on the accruals basis under the following headings, all costs
are allocated to a specific category.
Cost of Raising Funds:
These are the costs of managing the Endowment and Restricted funds in investments and properties.
Charitable Activities:
Ministry – these are the direct costs to order the worship and promote the mission of the Cathedral.
These include the costs for the clergy employed by the Chapter, the costs of supporting their work
across the city and diocese of Birmingham and the costs related to services, music and other Cathedral
activities.
Cathedral and precincts upkeep – these are the costs required to ensure the ongoing maintenance and
upkeep of the Cathedral building and fabric.
Education and outreach – these are payments to other local organisations and charities
Community, parish and congregation – these are the costs associated with arts projects, the heritage
project and the annual contribution to Birmingham Diocese.
Other expenditure – this includes the interest on the Chapter’s borrowings, provisions against slow
moving stocks or trade debtors as deemed necessary in the normal course of business.
Support Costs – these consist of central management, administration and governance costs. These are
costs which are incurred directly in the support of charitable activities. These are costs which are
directly attributable to a specific activity.
Value added tax
The Cathedral recovers 45% of all VAT paid, subject to the current partial exemption rules, apart from
that on purchases from the gift shop where 100% is recovered. VAT is charged at full rate on all vatable
sales.
Pensions
The Cathedral contributes to the Church Workers Pension Fund for lay staff. Contributions to the
Church of England Funded Pension Scheme for the Cathedral clergy are fully funded by the (Section 21)
grant receivable from the Church Commissioners. Both these schemes are multi-employer pension
schemes,
The pension costs charges as resources expended represent the Cathedral’s contributions payable in
respect of the accounting period, in accordance with FRS 102. Deficit funding for the lay worker
pension scheme to which the Cathedral participates is accrued at current value in creditors
distinguishing between contributions falling due within one year and after more than one year. Details
of the scheme is given in note 18 to the financial statements.
Deficit funding in respect of the clergy in the Church of England Funded Pension Scheme is fully met by
the Church Commissioners and hence the deficit funding liability is included in the financial statements
of the Church Commissioners who have responsibility for this liability.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
2. INCOME AND ENDOWMENTS FROM:
Unrestricted Funds Restricte
d
Endowme
nt
Total Total
General Designat
ed
Funds Funds 2016 2015
£ £ £ £ £ £
Donations &
Legacies
Congregational
collections and
giving
85,401
-
-
-
85,401
83,196
Donations 42,505 - 5,625 - 48,130 40,928
Income from
appeals
- - - - - 15,604
Tax recoverable
under gift aid
18,714
-
1,788
-
20,502
19,601
Income from
Friends and local
trusts
-
-
-
-
-
3,100
Legacies - - - - - 1,100
_______
__
_______
__
________
__
_________
__
_______
_
_______
146,620 - 7,413 - 154,033 163,529
=======
==
=======
=
=======
=
========
=
======= ======
Grants in
support of
mission
Church
Commissioners
- - 280,509 - 280,509 276,261
All Churches
Trust
21,795 - - - 21,795 21,263
World War 1
Grant
- - 9,730 - 9,730 489,198
Heritage Lottery
Grant
- - 9,800 - 9,800 39,200
Other grants - - 86,389 - 86,389 296,762
_______
__ _______
__ ________
_ _________ _______
__ _______
__ 21,795 - 386,428 - 430,573 1,122,684
=======
== =======
= =======
= ======== =======
= =======
=
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Charges & fees
arising in the
course of
mission
Facility and other
fees
9,314 1,000 1,073 - 11,387 9,677
=======
= =======
= =======
= ======== =======
= =======
=
Trading &
fundraising
activities
Income from
lettings of
Cathedral/church
yard
42,555
-
-
-
42,555
23,923
Gross income of
the shop and
other activities
2,966
-
4,352
-
7,319
13,551
_______
__ _______
__ ________
_ _________ _______
__ _______
__ 45,521 - 4,352 - 49,873 37,474
=======
== =======
= =======
= ======== =======
= =======
=
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
INCOME CONTINUED:
Unrestricted Funds Restricted Endowmen
t
Total Total
General Designate
d
Funds Funds 2016 2015
£ £ £ £ £ £
Income
from
property
and
investmen
ts
Property 52,000 - - - 52,000 52,000
Investments 138,402 - 6,903 - 145,305 160,418
Interest
receivable
on short
term
deposits
640
-
78
-
718
619
________
_
________
_
_________
_
_________
__
________ _______
191,042 - 6,981 - 198,023 213,037
========
=
======== ======== ========= ======= ======
Other
income
Insurance
recoveries
- - - - - 3,117
Other items 268 - - - 268 72,277
________
_ ________
_ _________ _________ ________
_ ________
_ 268 - - - 268 75,395
========
= ======== ======== ======== =======
= =======
=
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
3. PROPERTY INCOME
St Philip’s Total Total
House 2016 2015
£ £ £
Rents and service charges 52,000 52,000 52,000
Less: interest & charges (3,009) (3,009) (1,222)
_________ ________ _______
Net income 48,991 48,991 50,778
========= ======= ======
The freehold of St Philip’s House, St Philip’s Place is subject to a lease for one hundred and twenty-five
years from 25 December 1979 at a calculated rental of £52,000 per annum, subject to a review
every five years.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
4. EXPENDITURE ON:
Unrestricted Funds Restricted Endowmen
t
Total Total
General Designate
d
Funds Funds 2016 2015
£ £ £ £ £ £
Raising
Funds
Cost of
services
directly
recoverabl
e
8,772
-
-
-
8,772
4,593
Gross cost
of shop
and other
activities
78
-
-
-
78
1,784
General
marketing
costs
2,545 - - - 2,545 1,991
Cost of
fundraising
4,375 - 9,263 - 13,638 15,745
Investment
property
costs
3,009 - - - 3009 1.222
Investment
manageme
nt costs
8,782
-
-
-
8,782
7,176
Support
costs
31,822 6,539 9,036 - 47,397 43,842
________ ________
_
_________
_
__________
_
________ _______
59,383 6,539 18,299 - 84,221 76,353
=======
=
======== ======== ========= ======= ======
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Ministry
Costs
Clergy
stipends
and
working
expenses
3,975
-
117,001
-
120,976
128,990
Clergy
housing
costs
9,365 - - - 9,365 18,843
Clergy
support
costs
22,148 - 22,975 - 45,123 30,177
Service
costs
17,987 - 26,778 - 44,765 41,879
Music costs 106,278 345 28,331 - 134,954 168,115
Support
costs
31,822 - 9,036 - 40,858 43,842
________
_ ________
_ _________ _________ ________
_ ________
_ 191,575 345 204,121 - 396,041 431,846
=======
= ======== ======== ======== =======
= =======
=
Cathedral
&
precincts
upkeep
Major
repairs &
restoration
-
-
133.809
-
133,809
979,690
Maintenanc
e &
interior
upkeep
100,593
-
28,752
-
129,345
96,330
Cathedral
insurance
19,472 - - - 19,472 18,927
Support
costs
3,877 - 9,036 - 12,913 16,695
________
_ ________
_ _________ _________ ________
_ ________
_ 123,942 - 171,597 - 295,539 1,111,642
=======
= ======== ======== ======== =======
= =======
=
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Education
and
Outreach
Educational
activities
- 4,344 1,804 - 6,148 -
Charitable
& other
giving
- - - - - -
________
_ ________
_ _________ _________ ________
_ ________
_ - 4,344 1,804 - 6,148
=======
= ======== ======== ======== =======
= =======
=
EXPENDITURE CONTINED:
Unrestricted Funds Restricted Endowmen
t
Total Total
General Designate
d
Funds Funds 2016 2015
£ £ £ £ £ £
Communit
y, parish &
congregati
on
Tercentenary
events
- - 1,668 - 1,668 181,283
Arts Events - - 30,582 30,582 -
Heritage
events
- - 30,698 - 30,698 39,746
Diocese 39,996 - - - 39,996 39,996
Dean’s
awards
(15) - - - (15) 291
Support costs 5,240 - 11,974 - 17,214 20,587
_______
_ ________
_ _________ _________ ________
_ ________
_ 45,221 - 74,922 - 120,143 281,903
=======
= ======== ======== ======== =======
= =======
=
Other
Expenditur
e
Interest &
similar
charges
payable
10,002
-
-
-
10,002
4,121
_______
_
________
_
_________
_
_________
__
________ _______
10,002 - - - 10,002 4,121
=======
=
======== ======== ========= ======= ======
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
ANALYSIS OF SUPPORT COSTS IS:
Unrestricted Funds Restricted Endowmen
t
Total Total
General Designate
d
Funds Funds 2016 2015
£ £ £ £ £ £
Support
Costs
Raising
funds
31,822 - 9,036 - 40,858 43,842
Ministry 31,822 - 9,036 - 40,858 43,842
Cathedral
& precincts
upkeep
3,877
-
9,036
-
12,913
16,695
Community
, parish &
congregatio
n
5,240
-
11,974
-
17,214
20,587
________
_
________
_
_________
_
__________
_
________ _______
72,761 - 39,082 - 111,843 12,944
=======
=
======== ======== ========= ======= ======
Analysis
Office rent 23,250 - - - 23,250 23,250
Office
running
costs
24,978 - - - 24,978 21,242
Staffing
costs
16,872 - 39,082 - 55,954 70,669
Governanc
e – Audit
7,661 - - - 7,661 9,081
– Non -
audit
- - - - - 724
________
_ ________
_ _________ _________ ________
_ ________
_ 72,761 - 39,082 - 111,843 124,966
=======
= ======== ======== ======== =======
= =======
=
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
5. INVESTMENT INCOME AND GAINS
Unrestricted Funds Restricted Endowmen
t
Total Total
General Designate
d
Funds Funds 2016 2015
£ £ £ £ £ £
Dividends
receivable
138,402 - 6,903 - 145,305 160,418
Interest
receivable
640 - 78 - 718 619
Property
income
52,000 - - - 52,000 52,001
________ ________
_
_________
_
__________
_
________ _______
191,042 - 6,981 - 198,023 213,038
=======
=
======== ======== ========= ======= ======
Realised
gains/(losse
s)
- - - (4,064) (4,064) (3,154)
Unrealised
gains/(losse
s)
- - 5,586 369,960 375,546 (1,048)
________
_ ________
_ _________ _________ ________
_ ________
_ - - 5,586 365,896 371,482 (4,202)
________ ________
_ _________ _________ ________
_ ________
_ Total
income &
gains
191,042 - 12,567 365,896 569,505 208,835
=======
= ======== ======== ======== =======
= =======
=
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
6. INVESTMENT PROPERTY
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
£ £ £ £
At valuation: 1 January 2016 - - 1,100,000 1,100,000
Additions - - - -
Revaluation - - - -
_________ _________ _________ _________ At valuation 31 December 2016 - - 1,100,000 1,100,000
======== ======== ======== ========
Disclosed within:
Investment assets – St Philip’s
House
1,100,000
========
The Endowment Fund represents the freehold of St Philip’s House, St Philip’s Place which is subject to
a lease of one hundred and twenty-five years from 25 December 1979. The investment property was
professionally valued by Richard Connolly BSc MRICS and Michael Stephens MRICS of CBRE
Ltd as at 31 December 2015.
7. INVESTMENTS
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
£ £ £ £
Investments at market value at 1
January 2016
- 135,945 3,418,102 3,554,046
Additions - - 573,500 573,500
Disposals at opening value - - (591,366) (591,366)
Net change in market value - 5,586 369,960 375,546
_________ _________ _________ _________
Investment at market value at 31
December 2016
- 141,531 3,770,196 3,911,727
======== ======== ======== ========
The investment transactional costs for the year were £8,782 (2015: £7,176)
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
8. NON INVESTMENT PROPERTIES
Unrestrict
ed
Funds
Restricte
d Funds
Endowme
nt Funds
Total
Funds
2016
Total
Funds
2015
£ £ £ £
At deemed costs 1 January 2016
and 31 December 2016
-
-
1,165,000
1,165,000
1,165,000
Additions - - - -
======== =======
= ======== ======== ========
All non-investment properties are freehold and used as follows:
Deemed
Cost
2016
Deemed
Cost
2015
£ £
For Cathedral use:
38 Goodby Road 575,000 575,000 4 Nursey Drive 295,000 295,000 12 Nursery Drive 295,000 295,000 _________ _________ 1,165,000 1,165,000 ======== ========
The properties are for the use of the clergy of the Cathedral. The occupiers are provided with this
accommodation rent free in order to enable them to perform their duties. Cathedral policy is that
properties which are vacant for short periods are let. The Cathedral shop is within the Cathedral.
These properties were previously included in the financial statements based on formal open market
valuation as determined by Robert Aston and Co Chartered Surveyors as at 31 December 2011.
Following adoption of SORP 2015 Chapter has elected, under the transitional rules, to adopt the
previous valuation of the properties as deemed cost.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
9. EQUIPMENT
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
£ £ £ £
COST
At 1 January 2016 1,006 8,995 - 8,995
Additions 1,587 - - 1,587
________ _________ _________ _________ As 31 December 2016 2,593 8,595 - 11,588
======== ======== ======== ========
ACCUMULATED
DEPRECIATION
At 1 January 2016 280 904 - 1,184
Depreciation charge for the year 334 320 - 654
_________ _________ _________ _________ At 31 December 2016 614 1,224 - 1,838
======== ======== ======== ========
NET BOOK VALUE
At 31 December 2016 1,979 7,771 - 9,750
======== ======== ======== ========
As 31 December 2015 726 8,091 - 8,817
======== ======== ======== ========
10. STAFF COSTS
The average monthly number of employees during the year was as follows:
2016 2015
Clergy 3 3 Vergers 4 4 Music & services 5 6 Administration 5 4 _________ _________ 17 17 ======== ========
Average number of full time equivalent staff:
2016 2015
Clergy 3 3 Vergers 3.5 2.5 Music & services 2 2 Administration 4 3.5 _________ _________ 12.5 11 ======== ========
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Staff costs during the year were as follows:
2016 2015
£ £
Salaries & Stipends 339,016 344,770 Employer’s National Insurance 26,603 24,967 Employer’s Pension Contributions 48,287 74,974 Compensation for loss of office - 25,000 _________ _________ Total Costs 413,906 469,711 ======== ========
No-one received emoluments above £60,000 during the year.
Remuneration of key management personnel
Key management personnel are deemed to be those having authority and responsibility delegated to
them by Chapter for planning, directing and controlling the activities of the Cathedral. During 2016
they were:
The Dean The Very Reverend Catherine Ogle
Canon Liturgist The Revd Canon Janet Chapman – until
Canon Missioner The Revd Canon Nigel Hand
Director of Resources Anna Pitt
Remuneration, pensions and expenses for these four people amounted to £169,344 (2015: £164,809)
The clergy are also members of Chapter, details of their remuneration is given below:
Salaries &
Stipends
Employer’s
National
Insurance
Employer’s
Pension
Contributions
£ £ £
Remuneration of members of the Chapter The Very Revd Catherine Ogle 34,850 3,462 11,539 The Revd Canon Nigel Hand 26,872 2,334 9,231 The Revd Canon Janet Chapman 17,879 1,603 9231 ======== ======== ========
The Revd Canon Nigel Hand, the Revd Canon Janet Chapman and the Very Revd Catherine Ogle were
also provided with the use of a Cathedral house free of rent and rates in furtherance of their duties.
The remuneration of and pension provided for clerical members of Chapter is paid in accordance with
scales lais down annually by the Church Commissioners, the Archbishops’ Council and the Church of
England Pensions Board. No remuneration was paid to lay members of Chapter in their capacity as
Chapter members
Reimbursement of expenses incurred totalling £488 (2015: £371) were paid in total to two members
of Chapter during the year. Reimbursement expenses comprised refreshments, bar stock etc.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
11. CURRENT ASSETS – DEBTORS
2016 2015
£ £
Trade debtors 1,409 4,021
Other debtors 33,665 135,158
Prepayments 7,250 6,574
Other taxation _ 9,289
_________ _________ 42,324 155,042
======== ========
12. LIABILITES DUE WTHIN ONE YEAR – CREDITORS
2016 2015
£ £
Birmingham Diocesan Board of Finance Loan 20,000 20,000
Trade creditors 20,318 21,473
Other creditors (including Social Security and other taxes) 20,511 16,654
Pension deficit liability - 11,000
Accruals 91,441 40,278
_________ _________ 152,270 109,405
======== ========
13. LIABILITIES DUE AFTER ONE YEAR – CREDITIORS
2016 2015
£ £
Birmingham Diocesan Board of Finance Loan 180,000 200,000
_________ _________ Total borrowings 180,000 200,000
Less: due within one year (20,000) (20,000)
_________ _________ 160,000 180,000
======== ========
An unsecured loan of £200,000 was advanced by Birmingham Diocesan Board of Finance during 2015
to facilitate delivery of the interior restoration project. In order for the Cathedral to access grant
funding of £489,189 under the government’s World War 1 Cathedral grants, this work had to be
completed during 2015.
The loan from Birmingham Diocesan Board of Finance is repayable on a quarterly basis over a term of
10 years with interest payable at the average rate declared by The CBF Church of England Deposit
Fund plus 3.45%. This equated to an interest rate of % during 2016 (2015: 4.1%)
Included in the above are the following:
2016 2015
£ £
Amounts repayable by instalments:
Between 1 – 2 years 20,000 20,000
Between 2 – 5 years 60,000 60,000
After 5 years 80,000 100,000
_________ _________ 160,000 180,000
======== ========
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
14. ANALYSIS OF FUNDS
Balance
b/f At
1 Jan
2016
Income
Expenditur
e
Unrealised
Gain/(Loss
)
0n
Revaluatio
n
Transfe
r
betwee
n Funds
Actual
Profit/(Los
s)
On
Disposal
Balance c/f
At
31 Dec
2016
£ £ £ £ £ £
Restricted Funds
Mission &
Development Fund
9,421
44
(581)
-
-
-
8,884
Belliss Fund 1,049 12 - - - - 1,061
Choir Tours Fund 2,666 1,960 - - - - 4,626
Music Fund 2,611 20,662 - - (20,611) - 2,662
St Philip’s Singers
Fund
1,096 - (55) - - - 1,041
FCM Song School 16,494 687 - 653 (687) - 17,147
Ouseley Trust Fund 5,000 - - - (2,500) - 2,500
Flower Fund 2,825 3,386 (2,762) - - - 3,449
Harridine Bequest 17,212 - - - - - 17,212
St Philip’s Education
(Christchurch) Fund
81,899
1,999
(1,804)
6,268
-
-
88,362
Bishop of Birmingham’s
Centenary Appeal Fund
9,508
-
-
-
(9,508)
-
- Tercentenary Arts Fund - - (1,480) - 1,480 - -
Tercentenary Something
to Share Fund
347
28
(261)
-
(114)
-
-
Tercentenary Festival
of Voices Fund
2,140
966
(1,335)
-
(1,770)
-
-
Internal Works Fund - 2,136 - - (2,136) - -
Tercentenary
Pilgrimages Fund
1,500
-
(72)
-
-
-
1,428
Tercentenary
Heritage Fund
34,612
11,001
(30,698)
-
-
-
14,915
The Provost’s Book
Fund 3,891 18 - - - - 3,909
FCM Music Trust
Fund
22,531 - - - - - 22,531
Howlett Bequest 15,866 - - - (11,866) - 4,000
Altar Linen Fund - 300 - - - - 300
Boiler Fund - 100 - - (100) - -
Chorister Hardship
Fund
-
-
(320)
-
8,000
-
7,680
Arts – Measure of Us - 30,889 (27,102) - - - 3,787
Arts – Something Good - 2,500 (2,000) - - - 500
Administrative
Support Role Fund
-
-
-
-
7,364
-
7,364
Clergy Moving Costs - - - - 5,000 - 5,000
Church Commissioners
Stipends
-
139,351
(139,531)
-
-
-
- Church Commissioners
Section 23
-
163,508
(151,144)
-
(12,364)
-
-
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Fundraising campaign:
Campaign Other 48,222 12,246 (133,809) - 73,339 - -
Mission Fund 11,952 - - - - - 11,952
Music Fund 5,334 1,803 (319) - - - 6,818
Music Endowment 39,380 35,000 - (1,335) - - 73,045
_______
_
_______
_
________ ________ _______
_
________ ________
335,556 428,597 (493,093) 5,586 33,527 - 310,173
======
= ======
= ======= ======= ======
= ======= =======
ANALYSIS OF FUNDS CONTINUED
Balance
b/f At
1 Jan
2016
Income
Expenditur
e
Unrealised
Gain/(Loss
)
0n
Revaluatio
n
Transfe
r
betwee
n Funds
Actual
Profit/(Los
s)
On
Disposal
Balance c/f
At
31 Dec
2016
£ £ £ £ £ £
Designated Funds
Development fund 46,702 - - - (46,702) - -
Education Fund 4,344 (4,344) - - - -
Tercentenary,
Merchandise,
Marketing fund
14,598
(6,539)
-
-
-
8,059
Fabric Fund 9,072 - - - (9,072) - -
St Philip’s Singers
fund
1,000 - - - - - 1,000
Vacancy Repair
Contingency
-
-
-
-
1,000
-
1,000
Maintenance Fund - - - - 10,000 - 10,000
Special Music Fund - 1,000 (345) - - - 655
________ _______
_
_________ _________ _______
_
________ ________
75,716 1,000 (11,228) - (44,774) - 20,714
======= ======
= ======= ======= ======
= ======= =======
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Unrestricted
Funds
General
unrestricted fund
(259,276)
414,560
430,123
-
20,029
-
(254,810)
________ _______
_ ________ ________ _______
_ ________ ________
(259,276) 414,560 430,123 - 20,029 - (254,810)
======= ======
= ======= ======= ======
= ======= =======
Endowment
Funds
General Endowment
Fund
6,235,497
-
-
369,960
(8,782)
(4,065)
6,592,610
_______ _______
_ ________ ________ _______
_ ________ ________
6,235,497 - - 369,960 (8,782) (4,065) 6,592,610
======= ======
= ======= ======= ======
= ======= =======
Due to difficult past economic conditions the Cathedral continues to find itself with an historical net
deficit on its unrestricted funds. This position is being actively remedied by Chapter by robust
monitoring of unrestricted expenditure and generation of unrestricted income.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
ANALYSIS OF FUNDS CONTINUED:
Details of inter-fund transfers in the year are as follows:
Unrestricted Funds Restricted Endowment Total
General Designated Funds Funds 2016
£ £ £ £ £
Development Fund to
Campaign Other Fund
1 (46,702) 46,702 -
Fabric Fund to
Campaign Other Fund
2 (9,072) 9,072 -
General Fund to
Vacancy Repair
Contingency Fund
3 (1,000) 1,000 -
General Fund to
Maintenance Fund
4 (10,000) 10,000 -
Music Fund to General
Fund
5 10,000 (10,000) -
Music Fund to General
Fund
6 2,611 (2,611) -
Music Fund to
Chorister Hardship
Fund
7 (8,000) -
8,000
FCM Song Scholl Fund
to General Fund
8 687 (687) -
Ousley Trust Fund to
General Fund
9 2,500 (2,500) -
Bishop of Birmingham
Centenary Appeal Fund
to Campaign Other
Fund
10
(9,508)
-
9,508
General Fund to
Tercentenary Arts
Strand
11
(1,480)
1,480
-
Something to Share
Fund to General Fund
12 114 (114) -
Tercentenary Festival
of Voices Fund to
General Fund
13
1,770
(1,770)
-
Internal Works to
Campaign Other Fund
14 (2,136)
2,136
Howlett Bequest Fund
to General Fund
15 11,866 (11,866) -
Boiler Fund to General
Fund
16 100 (100) -
Church Commissioners
Section 23 Fund to
Administration Support
Fund
17
(7,364)
7,364 -
Church Commissioners
Section 23 Fund to
Clergy Moving Costs
Fund
18
(5,000)
5,000
-
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Endowment Fund to
General Fund
19 8,782 (8,782) -
General Fund to
Campaign other Fund
20 (5,921) 5,921
________ _________ _________ _________ _________ 20,029 (44,774) 33,527 (8,782)
======== ======== ======== ======== ========
ANALYSIS OF FUNDS CONTINUED:
1. This represents the release of designated funds in respect of the internal restoration works which
expenditure has been charged to the Campaign-Other fund.
2. This represents the release of designated funds in respect of the internal restoration works which
expenditure has been charged to the Campaign-Other fund.
3. This represents the release of general funds to a vacancy contingency fund to cover future costs to the
repair/redecoration of clergy housing upon vacation.
4. This represents the release of general funds to create a maintenance fund for future maintenance costs.
5. This represents a donation received from the Friends of Cathedral Music towards the music costs of
the Cathedral.
6. This represents donations received towards the music costs of the Cathedral.
7. This represents a donation from the Friends of Cathedral Music towards music costs.
8. This represents income from the investments towards the costs of Choral Scholars
9. This represents part of the grant previously received from the Ouseley Trust towards the cost of
Choral Scholars.
10. This represents the release of restricted funds in respect of the internal restoration works which
expenditure has been charged to the Campaign-Other fund and in particular the costs associated with
improving the Cathedral entrance.
11. This represents the release of general funds towards the balance of costs associated with the
Tercentenary Arts Fund.
12. This represents donations towards the Tercentenary Something to Share Fund whose donations were
split between the Malawi Partnership, St Basil’s, Growing younger initiative run by Birmingham Diocese
and the Cathedral
13. This represents administration costs for the Festival of Voices events.
14. This represents donations received in respect of the internal restoration works which expenditure has
been charged to the Campaign-Other fund.
15. This represents the release of restricted funds towards the music costs of the Cathedral.
16. This represents a donation received towards the costs of replacing the boiler, the expenditure of which
has been charged to general funds.
17. This represents part of the additional grant received from Church Commissioners
18. This represents part of the additional grant received from Church Commissioners
19. This represents the costs relating to the purchase and selling of investments during 2016
20. This represents the release of general funds in respect of the internal restoration works which
expenditure has been charged to the Campaign-Other fund.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
ANALYSIS OF FUNDS CONTINUED:
Designated Fund Purpose
Development Fund This fund is to support future developments and improvements
in the Cathedral and Churchyard
Education Fund The education department’s income and expenditure raised by
school visits and other works.
Tercentenary
Merchandise/Marketing/Literature
Fund
This fund was created for the purchase of merchandise and
marketing material for the Cathedral’s tercentenary and the
continued support of the Marketing Manager’s post
Fabric Fund This fund is for the upkeep of the Cathedral’s fabric
St Philips Singers Fund This fund was created from a legacy received from a member of
the St Philip’s Singers
Vacancy Repair Fund This fund is to be used for the re-decoration and any works
required to clergy houses upon vacation.
Maintenance Fund This fund is to be used for rolling maintenance costs
Special Music Fund This fund is used by the Director of Music for special events
requiring additional musicians
Admin Support Role Fund This fund is to be used to pay for the Administration Support
Role
Clergy Moving Costs Fund This fund is to be used for moving costs incurred on the
appointment of the new Canon Liturgist and Dean
Restricted Fund
Mission & Development Fund This fund consists of donations made by the friends and family of
Simon Richmond. It is intended to be used for evangelism and
/or development of the Cathedral in memory of Simon
Richmond.
Belliss Fund This fund was provided on the understanding that the Cathedral
would keep the Belliss monument in good order
Choir Tours Fund The Choir raises money from sales of compact discs, tapes,
raffles, donations and other sources to fund their tours.
Music Fund This fund consists of funds raised or donated in support of the
Cathedral’s choirs and music.
St Philips’s Singers Fund This fund comprises money raised by the St Philip’s Singers that
will be used for their needs.
FCM Song School These funds represent grants from Friends of the Cathedral
Music which are devoted to these purposes.
Ouseley Trust Fund Grant received towards choral scholarships.
Flower Fund Funds received specifically towards the provision of flowers in
the Cathedral.
Harridine Bequest Fund A bequest received towards the cost of building a new Cathedral
St Philip’s Education
(Christchurch) Trust
This fund is to support the Cathedral’s education work
Bishop of Birmingham’s
Centenary Appeal Fund
This fund contains donations raised during the Centenary Appeal
towards improving access and welcome for visitors.
Tercentenary Arts Strand Grants received in connection with arts events to do with
celebrating the Cathedral’s tercentenary
Something to Share Fund During its Tercentenary year the Cathedral is asking people to
donate to its Something to Share Fund which at the end of 2015
will be divided equally between the Malawi Partnership, St Basil’s,
rowing Younger initiative run by Birmingham Diocese and the
Cathedral
Tercentenary Festival of Voices Grants and sponsorship received in connection with the three
concerts celebrating the life of the Cathedral over 300 years
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Internal Works Donations and grants received towards the internal
refurbishment of the Cathedral
Tercentenary Pilgrimages Grants received to help towards the cost of arranging
pilgrimages from all Birmingham Deanery’s to their Mother
Church,
Tercentenary Heritage Fund Grants received in connection with heritage projects for the
Cathedral
The Provost’s Book Fund The Provost’s book fund represents funds provided to aid the
former Provost with his research
FCM Music Trust Fund This fund represents a grant from the Friends of Cathedral Music
to support the proposed Birmingham Cathedral Music Trust.
ANALYSIS OF FUNDS CONTINUED:
Restricted Funds
Continued
Purpose
Howlett Bequest Fund This fund is to provide maintenance and cleaning for the Howlett
family grave in Birmingham; to establish the “Seraphim” award used to
promote music in the Cathedral; and to encourage links with Eastern
Europe, Germany and Russia. Having discharged all our
responsibilities with regard to the will the Cathedral’s only remaining
duty is to keep the family grave at Yardley Cemetery in good order.
Therefore £4,000 is to be kept in this fund for this purpose with the
remaining funds being used towards the Cathedral music.
Altar Linen Fund This comprises of a donation toward new altar linen.
Chorister Hardship Fund This comprises grant received from the Friends of Cathedral Music
Arts – Measure of
Us/Something Good Funds
Grants received towards the cost of further arts projects
Fundraising Campaign
Campaign Other Campaign donations received to support the fabric objectives of the
campaign
Mission fund Campaign donations made to support the mission objectives of the
campaign
Music Fund Campaign donations made to support music in the Cathedral
Music Endowment Fund Capital fund for income to be used towards the music of the
Cathedral
Endowment Fund
General endowment fund These are historic permanent endowment funds. The Chapter can
utilise the income generated from these funds towards its general
charitable activites.
15. CONTINGENT LIABILITES
There are no known contingent liabilities at the balance sheet date
16. CAPITAL COMMITMENTS
There are no capital commitments which are contracted for but not provided in the financial statements
as at
31 December 2016 (2015: £nil)
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
17. OPERATING LEASE COMMITMENTS
At 31 December 2016 the Chapter had annual commitments under un-cancellable operating leases as
follows:
2016 2015
£ £
Expire date
Within 1 year 416 -
Between 2 to 5 years 5276 6,935
18. PENSION COSTS
During the year Birmingham Cathedral participated in the Church Workers Pension Fund (“CWPF”) for lay
staff. The Scheme is administered by the Church of England Pensions Board which holds the assets of the
schemes separately from those of the Employer and the other participating employers.
The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity
section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.
Birmingham Cathedral during 2016 participated in both the Defined Benefits Section and the Pension Builder
2014 section.
It was agreed from 1 July 2015 to make all future lay worker pension arrangements through the Pension
Builder 2014 section of the Church Workers Pension Fund. Membership of the Defined Benefits Section
became “frozen” or deferred t that date and all eligible lay workers are now active members of the Pension
Builder 2014 section. Information with regards to both sections of the scheme is given below.
Defined Benefits Scheme
The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for
lay staff based on final pensionable salaries.
For funding purposes, the DBS is divided into sub-pools in respect of each participating employer as well as
a Further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between
employers, including those relating to mortality and post-retirement investment returns.
The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions.
They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the
benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-
pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.
It is not possible to attribute the scheme’s assets and liabilities to specific employers, since each employer,
through the Life Risk Pool, is exposed to actuarial risks associated with the current and former employees
of other entities participating in the DBS. The scheme is considered to be a multi-employer scheme as
described in Section 28 of FRS 102 and as such contributions are accounted for as if the Scheme were a
defined contribution scheme. The pensions costs charged to the SoFA in the year contributions are payable
towards benefits and expenses accrued in that year (2016: £11,000, 2015: £15,000), plus any impact of deficit
contributions (see below), giving a total charge of £11,000for 2016 (2015: £21,000).
If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool and the
Actuary so recommends, further transfers may be made from the Life Risk Pool to the employers’ sub-
pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be
settled by the Church of England Pensions Board on the advice of the Actuary.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
A valuation of the DBS is carried out once every three years, the most recent having been carried out as at
31 December 2013. In this valuation, the Life Risk Section was shown to be in deficit by £4.9m and £4.3m
was notionally transferred from the employers’ sub-pools to the Life Risk Pool. This increased the Employer
contributions that would otherwise have been payable. The overall deficit in the DBS was £12.9m.
Following the valuation, the Employer has entered into an agreement with the Church Workers Pension
Fund to pay a contribution rate of 24% of pensionable salary and expenses of £2,400 per year. In addition
deficit payments of £14,685 per year have been agreed for 1.50 years from 1 April 2015 in respect of the
shortfall in the Employer sub-pool. This obligation has been recognised as a liability within the Employer’s
financial statements.
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The
movement in the provision is set out below:
2016 2015
£ £
Balance sheet liability at 1 January 11,000 32,000
Deficit contribution paid (11,000) (15,000)
Interest cost (recognised in SoFA - -
Remaining change to the balance sheet liability* (recognised in SoFA - (6,000)
Balance sheet liability at 31 December - 11,000
* Comprises change in agreed deficit recovery plan and change in discount rate between year-ends
This liability represents the present value of the deficit contributions agreed as at the accounting date
and has been valued using the following assumptions, set by reference to the duration of the deficit
recovery payments:
December 2016 December 2015 December 2014
Discount Rate 0.00% 0.00% 1.10%
The legal structure of the scheme is such that if another employer fails, the employer could become
responsible for paying a share of that employer’s pension liabilities.
The next valuation of the scheme is being carried out as at December 2016.
Pension Builder Scheme
The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension
Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.
Pension Builder Classic provides a pension for members for payment from retirement, accumulated
from contributions paid and converted into a deferred annuity during employment based on terms set
and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be
declared, depending upon the investment returns and other factors.
Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide
benefits at retirement. Pension contributions are recorded in an account for each member. This account
may have bonuses added by the Board before retirement. The bonuses depend on investment
experience and other factors. There is no requirement for the Board to grant any bonuses. The account,
plus any bonuses declared, is payable from members’ Normal Pension Age.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This
is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific
employers and that contributions are accounted for as if the Scheme were a defined contribution
scheme. The pensions costs charged to the SoFA in the year are contributions payable (2016: £18,304,
2015: £43,528).
A valuation of the scheme is carried out once every three years. The most recent scheme valuation
completed was carried out as at 31 December 2013. This revealed, on the ongoing assumptions used,
a surplus of £0.5m. There is no requirement for deficit payments at the current time.
Pension Builder 2014 will be valued in relation to the lump sum payable to members at normal pension
age. There are no annual pension benefits. Pension Builder 2014 commenced in February 2014 so the
first full valuation of that section will be carried out at the next CWPF valuation date, 31 December
2016.
19. RELATED PARTY TRANSACTION
The Cathedral shares office space with the Birmingham Diocesan Board of Finance and paid an amount
of £23,250
(2015: £23,250) in respect of this.
Common fund paid to Birmingham Diocesan Board of Finance for the year ending 31 December 2016
was £40,000
(2015: £40,000)
An unsecured loan of £200,000 was advanced by Birmingham Diocesan Board of Finance during 2015
to facilitate the delivery of the interior restoration project. In order for the Cathedral to access grant
funding of £489,198 under the government’s World War 1 Commemoration Fund for Cathedrals, this
work had to be completed during 2015. The loan form the Birmingham Board of Finance is repayable
on a quarterly basis over a term of 10 years with interest payable at the average rate declared by The
CBF Church of England Deposit Fund plus 3.45%, This equated to an interest of 3.91% during 2016
(2015: 4.1%), the amount of interest due for 2016 is £7,340
20. CONNECTED ENTITY
The Friends of Birmingham Cathedral is a registered charity that exists wholly for the benefit of the
Cathedral, but is not under its control. Only income received from the entity is included in the financial
statements. Relevant information about its income and assets is:
2016 2015
£ £
Gross income 182 1,520
Expenditure - 52
Amount paid to the Cathedral - 8,242
Funds b/fwd 13,875 20,649
Funds C/fwd 14,057 13,875
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016
21. PRIOR YEAR COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Funds Restricted Endowment Total
Notes General Designated Funds Funds 2015
£ £ £ £ £
Income & Endowments From:
Donations & Legacies 134,699 1,703 27,127 - 163,529
Grants in support of mission 21,263 - 1,101,421 - 1,122,684
Charges and fees arising in the
course of mission
9,677
-
-
-
9,677
Trading & fundraising 29,492 9 7,973 - 37,474
Income from property &
investments
201,988
-
11,049
-
213,037
Other income 3,170 - 23,602 48,623 75,395
_________ _________ _________ _________ ________
Total Income 2 400,289 1,712 1,171,172 48,623 1,621,796
_________ _________ _________ _________ ________
Expenditure On:
Raising Funds 55,344 - 21,009 - 76,353
Ministry 195,590 - 236,256 - 431,846
Cathedral & precincts upkeep 87,188 - 1,024,454 - 1,111,642
Education & outreach - - - - -
Community, parish & congregation 47,008 22,612 212,283 - 281,903
Other Expenditure 3,972 - 149 - 4,121
_________ _________ _________ _________ ________ Total Expenditure 4 389,102 22,612 1,494,151 - 1,905.865
Net incoming/(outgoing)
resources before investment
gains
11,187
(20,900)
(322,979)
48,623
(284,069)
Net gains/(losses) on investments 5,6,7 - - 302 (4,504) (4,202)
_________ _________ _________ _________ ________ Net Income/(Expenditure) 11,187 (20,900) (322,677) 44,119 (288,271)
Gross transfers between funds 14 10,805 (34,810) 31,181 (7,176) -
Actuarial gains/(losses) on defined
benefit pensions schemes
6,000
-
-
-
6,000
Other gains/(losses) -
_________ _________ _________ _________ ________ 6,000 - - - 6,000
Net movement in funds: 27,992 (55,710) (291,496) 36,943 (282,271)
Funds brought forward (287,268) 131,426 627,052 6,198,553 6,669,763
_________ _________ _________ _________ ________ Funds carried forward (259,276) 75,716 335,556 6,235,496 6,387,492
======== ======== ======== ======== =======
BIRMINGHAM CATHEDRAL CHAPTER STATEMENT OF CASH FLOWS For the year ended 31 December 2016