Minster chiefs in warning over cash problems

SENIOR officials at York Minster have warned that they are facing a tough financial position as they battle to contend with the after-shock of the recession.

The Minster's latest accounts reveal that it has weathered the economic slump better than had initially been feared, but a stark warning has been issued that there is no room for complacency.

The cathedral's bank balances are expected to experience a "significant deficit" during 2010 as the effects of the worst recession in the post-war period continue to be felt.

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A spokeswoman for the Minster said: "Whilst the recession is technically over, we remain cautious as further tax increases and public spending cuts work their way through the economy.

"We are being realistic and budgeting for a significant deficit in 2010, but we shall look for new ways of generating income whilst we continue to address those areas of our activities where financial improvements must be made."

A review of the Minster's financial accounts was published today, analysing the performance during the last nine months of 2009.

The cathedral's statutory accounts reveal a surplus of 210,000, which was significantly better than had been predicted, and reflected strong performances in entrepreneurial ventures.

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The Minster has instigated a frugal approach to its operations to counter the economic downturn, and its financial position has been buoyed by a substantial amount of income from legacies.

The last nine months of 2009 saw 470,000 left in legacies, and the cash is being used to support the maintenance and the mission of the Minster.

However, the Minster spokeswoman warned that without the cash from the legacies a loss would have been recorded on its normal operations.

Major expenditure has included 440,000 to support the Minster's music programme and 1.9m on the building's upkeep.

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Incoming resources amounted to almost 6m compared with 6.8m in 2008-09, and governance costs were 31,000 in comparison with 50,000 during the previous financial year.

Resources spent on the Minster's mission were just under 4m during the nine-month period compared to more than 5m in 2008-09.

Work is continuing on the multi-million pound restoration of the cathedral's East Front, which is backed by the Yorkshire Post and has presented one of the greatest financial challenges in recent years.

The Minster's director of development, Dr Richard Shephard, admitted that charitable trusts have been hit hard by the recession, and a decision was taken not to hold large-scale fundraising events at the cathedral.

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But the latest accounts show a 1m income from investments was much better than had been feared given the upheaval in the financial markets. The value of the Minster's investments recovered by 2.85m.

Visitors, retail and box office income helped to provide a 2.65m turnover in the nine-month period. The figure almost matches the 2.75m from the previous 12 months, and resulted in a net contribution to the Minster of 1.61m.

Enterprise has been boosted with an increase in the number of the Minster's retail outlets. A third shop, situated between Stonegate and the cathedral itself, was unveiled last November by the Dean of York, Keith Jones.