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2020-12-31-accounts

Annual Report and Financial Statements of the Parochial Church Council for the year ended 31st December 2020

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT

Background

The PCC of St Peter’s Church is an official, predominantly elected team that shares leadership responsibility with its Incumbent, in promoting within the ecclesiastical parish the whole mission of the Church - pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for the St Peter’s Church complex and associated properties. The Reverend Elizabeth (Libby) Etherington was appointed as Rector in May 2019.

The Parochial Church Council is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure.

The Parish of St Peter’s and the Parish of the Good Shepherd are a two-parish Group Ministry within the Aldershot Deanery of the Guildford Diocese. This is a commitment to support and co-operate in mission and has no financial obligations. The Church Pastoral Aid Society is the sole patron of both Parishes.

The PCC is registered with the Charity Commission. Its charity registration number is 1127534.

Membership

Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. In 2020 the Parish elected 5 of the 15 PCC representatives and all 6 Deanery Synod representatives. The PCC chose to co-opt the Treasurer as an additional member. In the light of the national situation relating to Coronavirus (COVID-19) the Bishop of Guildford used the powers contained in the Churchwardens Measure 2001 and the Church Representation Rules to extend the deadline for parish meetings to 31st October 2020. Consequently existing role holders continued in office for an extended period. With continuing constraints on meeting in person, on 20[th] July Bishop Andrew signed an instrument temporarily to permit these meetings to take place remotely if required. The APCM was held on held on 14th October using Zoom, with some 100 ‘logons’ and approximately 125 parishioners attending.

During the year the following served as members of the PCC: Incumbent: Revd Elizabeth Etherington Clergy: Revd Richard Cobbold Revd Sarah Norbron Revd Matthew Swires-Hennessy Associate Minister (to 30th June 2020) Revd Ben Perkins Curate (ordained Deacon 11th Oct 2020)

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT (continued) Youth Minister: Mrs Chloe Pollington Licensed Lay Ministers Representative: Mr Andrew Linn Wardens: Mr Graham Hudson Mrs Mary Bolton Mr Simon Martin

Licensed Lay Worker

(re-elected at APCM) (to APCM 2020) (re-elected APCM 2020) (from APCM 2020)

Representatives on the Mrs Catherine Fewings (re-elected APCM 2020) Deanery Synod: Dr David Rowell (re-elected APCM 2020) Mr Neil Seagrave (re-elected APCM 2020) Mrs Margaret Taylor (to APCM 2020) Mrs Kate Bricknell (from APCM 2020) Mrs Juliet Davis (from APCM 2020) Mr Nick Hayward (from APCM 2020)

Representatives: Mr David Barnes (Treasurer) (to APCM 2020) Mrs Andrea Birkett (from APCM 2019) Mrs Kate Bricknell (to APCM 2020) Mr Jonathan Coppock (from APCM 2020) Ms Heather Dee (to APCM 2020) Mr Rob Hooper (from APCM 2018) Mr Anthony Gilbert (from APCM 2019) Mrs Anne Hudson (from APCM 2019) Mr Jonathan Kelly (from APCM 2020) Mr Simon Martin (to APCM 2020) Mr Tony Milway (to APCM 2020) Mrs Catherine Morganti (from APCM 2018) Mr Tom Norbron (from APCM 2018) Mr Colin Price (from APCM 2019) Mr Alan Rees (from APCM 2018) Mr James Rogers (from APCM 2018) Mrs Margaret Taylor (from APCM 2020) Mrs Alison Welch (from APCM 2020) Mrs Tina West (from APCM 2019) Mrs Hannah Witt (from APCM 2020)

Co-Opted Member:

Mr David Barnes (Treasurer) (PCC 14th Oct 2020)

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT (continued)

Structure, Governance and Management

The method of election of the PCC members is as set out in the Church Representation Rules. All church attendees are encouraged to register on the Electoral Roll and the church leadership team endeavours to ensure that all congregations are represented on the PCC.

Committees

The PCC operates through a number of committees that meet between full meetings of the PCC:

Standing Committee

This is the only committee required by law. It has power to transact the business of the PCC between its meetings, subject to any directions given by the Council. It also keeps under review all PCC business matters and non-financial administration practices that are not the responsibility of any other subcommittee, agrees the agenda for PCC meetings, and prepares and administers contracts of employment for PCC employees for ratification by the PCC. It has authority for up to £1,000 on any individual item of expenditure, subject to reporting at the next PCC meeting.

Campus Development Committee

The Campus Development Committee manages campus development projects. The committee develops draft proposals for requirements, investigates and recommends the appointment of professional practices and liaises with professional practices when appointed. The committee has not met for several years.

Mission Committee

The Mission Committee manages mission activities (outside the parish), encouraging members of St Peter’s to consider God’s call to support mission, assisting in the selection of those called, supporting them throughout their training, missionary career and eventual resettlement. It encourages an interest in Mission(outside the parish) within the church family, keeping them informed. It manages the St Peter’s Mission Fund, which supports mission links and organisations financially.

Maintenance Committee

The Maintenance Committee manages the repair and maintenance of church property comprising St Peter’s Church and grounds, the Parish Centre, St Peter’s House and 14 Wilton Court.

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT (continued)

Finance Committee

The Finance Committee assists the PCC and Treasurer by managing the General Fund finances, including the preparation of annual audited accounts, preparation of the Annual Finance Report and presentation at the Annual Parish Meeting. The Finance Committee oversees all the other subcommittees’ financial transactions.

Parish Centre Management Committee

The Parish Centre Management Committee manages all aspects of usage and day-today maintenance of the Parish Centre and its facilities.

Risk Management Policy

A Risk Management policy is in place. The identification of risks and their management are devolved to the sub-committees and other groups who are most familiar with the detail of activities at their events (e.g. children’s groups, catering team). Risks are identified together with an owner, severity is assessed and the necessary Countermeasures identified (often with reference to Diocesan documentation). A Consolidated Risk Register is maintained to collate the risks associated with our ‘regular activities’.

During the year the PCC reviewed a number of detailed Risk Assessments relating to Covid 19 prevention. These included Assessments relating to; use of Zoom/other internet tools for Youth and Children’s work, Protocols for safe outdoor services, restricted use of the Parish Centre for youth and children’s activities, Protocols for use of the Church with restricted numbers of worshippers, measures to accommodate restricted Christmas Services etc. There were no instances of any Covid infection or required isolations.

The principal risks are in the areas of:

The PCC has continued with the practice of a member appointed as the Parish Safeguarding Officer, additionally we have a second Officer to share the role and also as a focus for vulnerable adults. All of the lay PCC members have completed the on-

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT

(continued)

line safeguarding course required by the Diocese. The PCC has complied with the duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016 (duty to have regard to House of Bishops’ guidance on safeguarding children and vulnerable adults).

Objectives and Activities

St Peter’s PCC has the responsibility of supporting the Rector and staff team in promoting the whole mission of the church within the ecclesiastical parish - pastoral, evangelistic, social and ecumenical. It also has responsibility for the Parish Centre, which is on the campus.

Major Objectives for the Year

The PCC has continued to support and resource the ministry of the church in fulfilling its objectives, expressed in the three-fold Vision Statement, to‘Love God, Love the Church, Love the World.’

2020 was a challenging year in the life of the church due to the Covid-19 pandemic. Significant restrictions and frequent changes to operational guidelines, applied by the Government and Diocese of Guildford, resulted in considerable prohibitions to our usual worship and ministry. However, despite these reductions to our normal pattern of activities, the church has continued to function.

Thanks to the additional effort of staff, volunteers and Wardens, church life has been creatively sustained through the time of the pandemic, seeing worship services and group activities utilize a variety of online technology and social media facilities. These have undoubtedly been less effective and more challenging than we would expect during normal circumstances, but even so, the three vision objectives of the church have continued to inform and motivate all church activity.

The early (pre-Covid) months of the year, saw the church responding to its call to ‘Love the World’, specifically through its attendance and community service at the Farnborough Winter Half Marathon. This event involved a team of approximately 180 church members running a hospitality tent at this key event for our town.

Other similar ‘in person’ ventures during the year were forced to cancel due to the Covid-19 restrictions, with the exception of an outdoor event run as an alternative to Halloween throughout the parish. The Light Trail was creatively designed to ensure Covid-secure social distancing was adhered to, whilst offering our 300 guests and 80strong church team a fantastic community event.

Where possible, other main events in the life of the church had to be reimagined and go on-line, including the significant ministry of the summer Holiday Club for primary school aged children.

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT

(continued)

Considering the extraordinary circumstances of the pandemic, the church has managed well to adapt and respond sensitively to the exceptional and unexpected challenges experienced by its members and neighbours in the parish. Care of the needy (including significant support of the food charity run by the Church of the Good Shepherd) and communal prayer became more significant during this time.

When planning our activities for the year, the PCC has considered and taken account of the Charity Commission guidance on public benefit.

Achievements and Performance

Church Attendance

The number of parishioners on the Church Electoral Roll at the 2020 APCM was 406. The average ‘normal time’ Sunday attendance prior to the Covid-19 pandemic (up until 23 March 2020) was 361 adults plus 69 children under the age of 16. Easter 2020 was restricted to online pre-recorded services only, for which accurate viewing data is not available. Christmas services were held with a significantly restricted capacity due to social distancing requirements. We welcomed 600 guests to worship services over Christmas Eve and Christmas Day. Other Christmas Services saw 261 people join us ‘in person’ on our church campus, including two outdoor ‘Carols by Lamplight’ services organized to allow greater attendance and liberty considering the significant restrictions in place for worship. In addition to these statistics, many more joined our worship via our new ‘live stream’ on YouTube (accurate viewing data is not available).

As well as our regular services, we enable our community to celebrate and thank God at the milestones of the journey through life. Through baptism we thank God for the gift of life, in marriage public vows are exchanged with God’s blessing and through funeral services friends and family express their grief and give thanks for the life which is now complete in this world, and to commend the person into God’s keeping.

Over the year we have had 2 infant baptisms, (we have been unable to celebrate baptisms under Covid-19 restrictions since 23 March 2020). We have had 4 marriages in church (all with significant restrictions to attendance), 3 funeral services have been held in church, and a further 16 funeral services were conducted by our clergy at local crematoria or cemeteries.

Review of the Year

The full PCC met eight times for general business during the year. Overall attendance was over 85%. In between these meetings the subcommittees listed above met and their minutes were circulated to the PCC. Discussion took place on these minutes

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT (continued)

where necessary.

Sunday services covering a range of styles of worship continued until 23 March, following the existing pattern of worship with anyone being welcome to attend:

8.00 AM - Holy Communion service from the 1662 Book of Common Prayer.

9.30 AM - An informal service welcoming all ages, with age appropriate groups for children up the age of 11 years. Refreshments are served after the service.

11.00 AM – A classical liturgical service with traditional organ-led hymns.

3.00 PM – A smaller service, welcoming and gently traditional where friendship and post service refreshments and prayer are key components of the gathering.

5.30 PM –A very informal and contemporary service, especially suitable for youth and young adults (although all ages are welcome and greatly enjoy it!) Music is led by a band and refreshments are served immediately after the worship has ended. During the service, various groups enjoy age specific fun and teaching(Pioneers for ages 7- 11yrs and Pathfinders for ages 11-13yrs). Discovery, a vibrant group for those 1418yrs, attend the service and meet socially afterwards.

During Covid-19 restrictions when ‘in person’ services have been permitted in the church (with restricted attendance), we have merged our range of services to cover the two options for worship covered by our previous pattern (detailed above): A 9am Classical service followed by a 10.30am Contemporary service (repeated at 12pm until November 2020 when the repeat service moved to 5pm). The second Contemporary service is a repeat of the 10.30am (due to limited attendance, both styles of worship have been live streamed since September 2020, and are also available to be viewed later at home if preferred). Prior to live streaming, both styles of service were prerecorded and available to watch on YouTube. We also provided ‘Youth Online’, ‘PJ Church’ (for primary school aged children) and ‘Purple Bucket’ (for toddlers) weekly worship and teaching videos for our under 18’s. Since September, we have held alternate ‘Kingdom Kids’ and ‘Kingdom Tots’ services ‘in person’ in the Parish Centre – these have taken place simultaneously to our 10.30am service. During the summer of 2020, outdoor services were held on 3 Sundays (with a repeat of each service later that day).

We have 25 Home Groups running, either weekly or fortnightly within which some 280 people participate. Since March 23 2020, most of these have been meeting remotely via Zoom or Whatsapp.

A number of maintenance and improvement tasks have been undertaken this year, including the installation of live streaming technology, replacement of video cameras

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT (continued)

and new screens throughout the church.

The majority of our mid-week ministries have been cancelled since March due to the Covid-19 restrictions. We continue to remotely support these group members as much as possible, including our senior group members and young families.

Children’s Ministry: Our Children’s and Schools’ Minister has been able to support work in five local primary schools delivering collective worship, lessons and lunchtime clubs until the end of March and some assemblies and acts of worship during Covid19, including providing video resources.

Youth Ministry: Our Youth Minister has maintained significant contact with our young people throughout this year, continuing mentoring, and some mid-week gatherings (online and ‘in person’).

Prayer: Gatherings have moved online and increased significantly in regularity during this Covid-19 period. Two 24 hour periods of consecutive prayer were mobilized using both Zoom and enabling increased personal prayer at home.

Financial Review

The continuing generosity of church members enabled the PCC to meet its normal commitments of running and maintaining the Church and associated activities.

The PCC has made plans for a significant increase in commitments in 2021. This has been shared with the church membership, seeking a giving increase of £38,000 in order to match these planned commitments. The Finance Committee will monitor the response from the church members and make recommendations to the PCC.

An Asset List has been established for the purposes of financial planning. We are continuing to make provision for the replacement and repair of items that are not annual expenses.

Reserves

The PCC does not hold significant financial reserves on the grounds that our church members give their money to be used, not held. We do, though, monitor our cash position very closely and it is our policy to maintain a ‘cash-at-bank’ balance of unrestricted funds in excess of £40,000.

At 31st December 2020 the reserves comprised:

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT

(continued)

Fundraising

Fundraising at St Peter’s is purely in the form of receiving free-will offerings and donations, some of which are gift-aided, from members of our congregations. We have not contracted the service of any professional fundraisers as defined by section 58 of the Charities Act 1992.

Collection boxes are available at all services, the contents of which are brought forward at the end of, and as part of, the service. All congregations are given a summary of the financial needs of the Church as part of the termly Vision and Giving presentations.

We do not engage in persistent or intrusive fundraising practices with any of our donors, including vulnerable people, and we do not have private or coercive discussions with individuals about their giving. Our fundraising practices are ethical and in accordance with Biblical principles. No complaints were received about our fundraising practices.

Pay & remuneration

The Key Management Personnel are considered to be the members of the PCC, who are the trustees of the charity, and the Operations Manager. The arrangements for the pay and remuneration of Key Management Personnel are as follows.

No other member of the Key Management Personnel is paid.

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT (continued)

Pension

With regard to our Pensions policy we make pension contributions for nonstipendiary ministry staff of 10% of salary, and for non-ministry staff we pay a contribution of 8%, rising to 9% in 2021. The contributions are charged to expenditure in the period they are due.

Mission Fund

The Mission Fund is a restricted fund (it cannot be spent on just anything) for giving to individuals and organisations in the mission field. During 2020 the reserves of this fund decreased slightly and these reserves will be applied as decided by the Mission Committee on behalf of the PCC. During 2020 we supported 24 individuals and organisations both at home and abroad, notably our link missionaries who we encourage you to read about on our website.

Professional Advisors

Our bankers are National Westminster Bank PLC. 31-37 Victoria Road, Farnborough, Hants. GU14 7NR

Our independent examiners are Jacob Cavenagh & Skeet. 5 Robin Hood Lane, Sutton, Surrey. SM1 2SW.

Responsibilities of PCC members

The PCC members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Charity law requires the PCC members to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the church and of its financial activities for that period.

In preparing those financial statements, the PCC members are required to:

Parochial Church Council of St Peter’s Church Farnborough

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ANNUAL REPORT

(continued)

The PCC members are responsible for keeping proper accounting records, which disclose with reasonable accuracy, at any time, the financial position of the church and enables them to ensure that the financial statements comply with the Charities Act 2011 and the Church Accounting Regulations 2006. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements that follow have been prepared in accordance with the Charities Statement of Recommended Practice 2015, Financial Reporting Standard 102.

15 March 2021

ON BEHALF OF THE PCC Rev Libby Etherington PCC Chair

Parochial Church Council of St Peter’s Church Farnborough

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REPORT OF THE INDEPENDENT EXAMINERS

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF ST PETER’S CHURCH FARNBOROUGH PAROCHIAL CHURCH COUNCIL

I report to the charity trustees on my examination of the accounts of the St Peter’s Church Farnborough Parochial Church Council (the Church) for the year ended 31 December 2020 set out on pages 15 to 28.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Church’s accounts as carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the Church’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Church as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Report) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102).

14

Parochial Church Council of St Peter’s Church Farnborough

REPORT OF THE INDEPENDENT EXAMINERS

(continued)

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Miriam Hickson CTA FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Date

Parochial Church Council of St Peter’s Church Farnborough

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FINANCIAL STATEMENTS

Note
Income and endowments from
Donations and legacies
2(a)
Other trading activities
Investments
2(b)
Charitable activities
2(c)
Other income
2(d)
Total income and endowments
Expenditure on
Raising funds
Charitable activities
3,4,5
Total expenditure
Net income/(expenditure)
Transfers between funds
10
Gains (losses) on revaluation of
fixed assets
6
Net Movement in Funds
Balances brought forward
Balances carried forward		 Statement of Financial Activities
for the Year Ended 31st December 2020
Unrestricted
Funds
Restricted
Funds
2020
Total
£
£
£
458,281
72,208
530,489
-
-
-
104
63
166
20,593
375
20,968
11,270
-
11,270
490,248
72,646
562,894
-
-
-
443,368
73,987
517,355
443,368
73,987
517,355
46,880
(1,341)
45,539
-
-
-
40,000
-
40,000
86,880
(1,341)
85,539
1,729,218
63,673
1,792,890
1,816,097
62,332
1,878,429		 Unrestricted
Funds
£
386,255
-
441
72,515
-
459,211
-
463,799
463,799
(4,588)
2,578
(75,000)
(77,011)
1,806,228
1,729,218		 Restricted
Funds
£
84,112
-
152
2,078
-
86,342
-
81,566
81,566
4,776
(2,578)
-
2,198
61,475
63,673		 2019
Total
£
470,367
-
593
74,593
-
545,553
-
545,366
545,366
187
-
(75,000)
(74,813)
1,867,703
1,792,890

Parochial Church Council of St Peter’s Church Farnborough

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FINANCIAL STATEMENTS

(continued) (continued)
Balance Sheet at 31st December 2020 Balance Sheet at 31st December 2020
Unrestricted Restricted 2020 2019
Funds Funds Total Total
Note £ £ £ £
Fixed Assets
Tangible fixed assets 7 1,677,213 - 1,677,213 1,639,904
Investments - - - -
1,677,213 - 1,677,213 1,639,904
Current Assets
Debtors 8 19,033 3,092 22,125 21,983
Short term deposits - - - -
Cash at bank and in hand 127,342 65,593 192,935 142,118
146,374 68,685 215,060 164,101
Liabilities:Amounts falling due 9 7,490 6,353
13,843		 11,115
within one year
Net Current Assets 138,885 62,332 201,217 152,986
Total Assets less Current 1,816,097 62,332
1,878,429		 1,792,890
Liabilities
Liabilities:Amounts falling due - -
-		 -
after one year
Net Assets 1,816,097 62,332 1,878,429 1,792,890
Funds
Unrestricted 1,816,097 1,816,097 1,729,218
Restricted 10 62,332 62,332 63,673
1,816,097 62,332 1,878,429 1,792,890

Approved by the Parochial Church Council on 15[th] March 2021and signed on its behalf by:

E A Etherington (Chairman)

D J Barnes (Member)

Parochial Church Council of St Peter’s Church Farnborough

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FINANCIAL STATEMENTS (continued) Statement of Cash Flows for the Year Ended 31st December 2020

Note
Net cash provided by (used in) operating activities
11
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments of borrowing
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 2020 Total
Funds
£

52,268
(166)
(1,285)
(1,451)
-
-
50,817
142,118
192,935		 2019 Total
Funds
£
11,690
(593)
(2,692)
(3,285)
-
-
8,405
133,713
142,118

Parochial Church Council of St Peter’s Church Farnborough

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FINANCIAL STATEMENTS (continued)

Notes to the Financial Statements

for the Year Ended 31st December 2020

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements are prepared in sterling, which is the functional currency of the church.Monetary amounts in these financial statements are rounded to the nearest £.

The Parochial Church Council of the Ecclesiastical Parish of Saint Peter Farnborough is UK Registered Charity No. 1127534 and meets the definition of a public benefit entity under FRS102.

The financial statements have been prepared under the Church Accounting Regulations 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)), applicable accounting standards and the Charities Act 2011. The financial statements are drawn up on the historical cost basis of accounting, as modified by the revaluation of tangible fixed asset properties.

Going concern

At the time of approving the financial statements, the PCC members have a reasonable expectation that the church has adequate resources to continue in operational existence for the foreseeable future. Thus the PCC members continue to adopt the going concern basis of accounting in preparing the financial statements.

Funds

General funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC. Funds designated for a particular purpose by the PCC are also unrestricted. The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body nor those that are informal gatherings of Church members.

Income

Donations, legacies and church activities

Parochial Church Council of St Peter’s Church Farnborough

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FINANCIAL STATEMENTS (continued)

Other income

Income from investments

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that a settlement will be required and the amount of the obligation can be measured reliably. Expenditure is discounted to present value for longer term liabilities. All expenditure is accounted for on an accruals basis.

Church Activities

This includes all expenditure incurred in the meeting of the church’s main objectives, and includes all costs in support of these objectives (including staffing and office costs). Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are outside the control of the charity. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount payable. A provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payments, settlement is probable, and the effect of discounting is material. The discount rate used is the rate offered on government bonds for a similar time period offered in the year in which the grant award is made.

The diocesan parish share is accounted for when payable. Any share unpaid at 31st December is provided for in these accounts as an operational (though not a legal) liability and is shown as a creditor in the balance sheet.

Other monies expended are recognised in the period in which they are incurred and are inclusive of attributable VAT which can not be recovered.

Included in church activities are governance costs, which comprise all costs in allowing the church to meet its legal and statutory requirements.

Fixed assets

Consecrated land and buildings and movable church furnishings

Consecrated or beneficed property is excluded from the accounts by Section 96(2)(a) of the Charities Act 1993.

Movable church furnishings held by the Rector and Churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted as inalienable property

Parochial Church Council of St Peter’s Church Farnborough

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FINANCIAL STATEMENTS

(continued)

unless consecrated. They are listed in the church’s Inventory which can be inspected (at any reasonable time). Inalienable property acquired prior to 1 January 2000 is not valued in the accounts. Items acquired since 1 January 2000 have been capitalized and depreciated in the accounts over their currently anticipated useful economic life (initially over 4 or 5 years) on a straight-line basis.

All expenditure incurred in the year on consecrated or beneficed buildings, individual items under £500 or on the repair of movable church furnishings acquired before 1 January 2000 is written off.

Other land and buildings

No depreciation is provided on freehold land and buildings. The PCC adopts a policy of maintaining all properties to a high standard which prolongs their useful lives and enhances their residual values and accordingly the PCC considers any depreciation arising or accumulated depreciation to date to be insignificant and immaterial. Housing properties are valued at their fair value. The Parish Centre is stated at cost. An annual review is carried out to consider the useful life and estimated residual value of all freehold properties.

Other fixtures, fittings and office equipment

Equipment used within the church premises is depreciated on a straight line basis over 4 or 5 years. Individual items of equipment with a purchase price of £500 or less are written off when the asset is acquired.

Debtors

Income tax recoverable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Parochial Church Council of St Peter’s Church Farnborough

21

FINANCIAL STATEMENTS (continued)

(continued)
2
Income
Unrestricted
Funds

£
(a) Donations and legacies
Gift Aid
305,878
Income tax recoverable on gift aid
76,772
Collections (open plate) at all
services
1,645
Sundry donations
61,519
Donations, appeals etc.
-
Legacies
2,000
Government Grants
10,003
Grants - Other
465
458,281
(b) Investment income
Interest and dividends (all UK)
104
104
(c) Charitable activities
Events and activities
5,240
Premises lettings etc.
13,216
Fees
2,137
20,593
(d) Other income
Insurance claims
11,270
-
Total income
490,248		 Restricted
Funds
£
51,689
13,029
696
6,684
40
70
-
-
72,208
63
63
165
-
210
375
-
-
72,646		 2020
Total
£
357,567
89,801
2,341
68,203
40
2,070
10,003
465
530,489
166
166
5,405
13,216
2,347
20,968
11,270
-
562,894






2019
Total
£
311,348
79,845
10,505
47,746
160
20,012
751
-
470,367
593
593
30,316
33,873
10,403
74,593
-
-
545,553

Parochial Church Council of St Peter’s Church Farnborough

22

FINANCIAL STATEMENTS

(continued)

3 Expenditure

Unrestricted
Funds

£
Charitable activities
Grants (note 4):
Missionary societies
-
Relief and development
agencies
-
Home missions and other
Church Societies
4,360
Other charitable societies
-
Ministry: Diocesan share
132,301
Staff costs (note 5)
79,626
Staff expenses
8,172
Church running costs
26,249
Church maintenance
47,752
Events
3,774
Group activities
7,977
Equipment depreciation
3,976
Capital & replacement projects
29,033
Salaries & pensions (note 5)
79,574
Training
5,785
Loan interest
-
Governance
3,542
Professional fees
2,160
Worship support costs
2,339
Office support costs
6,749
443,368
Total expenditure
443,368		 Restricted
Funds
£
7,606
9,500
53,753
2,007
-
-
-
28
-
-
1,093
-
-
-
-
-
-
-
-
-
73,987
73,987		 2020
Total
2019
Total
£
£
7,606
15,724
9,500
12,900
58,112
50,193
2,007
1,521
132,301
129,531
79,626
97,897
8,172
8,572
26,277
34,036
47,752
46,064
3,774
22,228
9,070
22,732
3,976
4,117
29,033
3,031
79,574
70,655
5,785
6,284
-
-
3,542
2,670
2,160
3,180
2,339
3,624
6,749
10,407
517,355
545,366
517,355
545,366

Parochial Church Council of St Peter’s Church Farnborough

23

FINANCIAL STATEMENTS (continued)

4 Grants

The following grants over £1,000 were made in the year:

he following grants over £1,000 were made in the year:
N A Pease (Stewardship)
India Africa Foundation
PAK7 (A Hart)
Crosslinks (J & J Miller)
Latin Link (M & H Frost)
Military Ministries International (G Stoevski)
The Triangle
Fusion (P Bolton)
Congo Church Association (Claudeline)
S Japitana (Wavemakers)
St Peter's School
Pioneers UK (H Antelo)
European Christian Mission (C & S Downing)
Serving in Mission (Banjo)
Emmanuel (General)
Other Grants (£1,000 or less in 2020)
Institutions
Individuals		 2020
£
11,400
6,500
6,300
4,950
4,400
4,400
4,000
3,850
3,806
3,300
2,544
2,400
2,200
2,200
1,800
12,715
461
77,226		 2019
£
10,300
10,000
0
0
6,500
6,500
4,000
0
0
3,000
2,828
2,500
7,250
3,250
0
13,959
10,250
80,338

Parochial Church Council of St Peter’s Church Farnborough

24

FINANCIAL STATEMENTS

(continued)

5 Staff Costs

FINANCIAL STATEMENTS
(continued)
Staff Costs
Wages and salaries
Social security costs
Pension costs		 2020
£
133,704
1,870
12,075
147,650		 2019
£

140,743

869

8,939

150,552

The Key Management Personnel (KMP) are considered to be the members of the PCC who are the trustees of the charity. The PCC consists of elected members, members of the ministry team ex officio and the Operations Manager.

During the year the PCC employed an Associate Minister, Youth Minister, Children’s Minister, Worship Leader, Operations Manager and three Administration Assistants, two Organists, two Gardeners, Supervisory Caretaker, two Caretakers and two Cleaners, none of whom earned £60,000 per annum or more. The total number of staff employed was 17 (2019 - 19).

The Associate Minister was a member of the PCC and was paid a stipend until his departure in July 2020 and the PCC paid £23,801(2019 - £42,300) to the Diocese of Guildford for his employment, housing and pension costs. The Youth Minister and Children’s Minister were members of the PCC and were paid £20,103 (2019 - £19,709) and £18,317 (2019 - £15,766) respectively during the year. In addition the Youth Minister was provided with a house.

The PCC also made contributions to workplace pension plans for Chloe Pollington, Helen Smith and Yo Kim of 10% of salary and for Anna Prescott, Margaret Roberts, Robert Dowse and Sarah Jones of 8% of nominal salary.

During the year members of the PCC gave a total of £78,539 (2019: £47,561) in unrestricted offerings and donations and £13,740 (2019:£10,990) to the Mission Fund. The only expenses reimbursed to members of the PCC during the year and previous year were for expenses directly relating to the work of the Church.

During the year 6PCC members were reimbursed a total of £7,140 for general expenses (2019: £3,429 for 6 members) and 3members were reimbursed a total of £25 (2019: £89 for 3 members) for training costs.

Total remuneration of Key Management Personnel amounted to £23,680 (2019: £46,518). Members of the close family of the Key Management Personnel received salary of £2,255 (2019: £2,361) and no expenses (2019: £2,204).

Apart from as above there were no other disclosable transactions in respect of PCC members, persons closely connected with them or other related parties.

Parochial Church Council of St Peter’s Church Farnborough

25

FINANCIAL STATEMENTS

(continued)

6 Unrealised Gains/ Losses

PCC assets include the Freehold land and buildings comprising the Parish Centre, Church Avenue, Farnborough, the Youth Minister’s house - St Peter’s House, Rectory Road, Farnborough, and the Curate’s house - 14 Wilton Court, Farnborough.

The houses are revalued at each year end and the Unrealised Gains are the uplift between the valuations from one year to the next.

St Peter’s House
14 Wilton Court		 2020
Valuation
2019
Valuation
£
£
625,000
600,000
365,000
350,000
990,000
950,000		 Gain
£

25,000

15,000
40,000

7 Fixed Assets for Use by the PCC

Fixed Assets for Use by the PCC
Tangible fixed assets
Gross book value
At 1st January 2020
Additions
Disposals
Revaluation (see Note 6)
At 31st December 2020
Depreciation
At 1st January 2020
Charge for the year
Depreciation of disposals
At 31st December 2020
Net book value
At 31st December 2020
At 31st December 2019		 Freehold
land and
buildings
£
1,631,863
-
-
40,000		 Equipment
£

167,776

1,285

(2,229)
-
Total
£

1,799,639

1,285

(2,229)
40,000
1,671,863 166,832 1,838,695
-
-
-
159,736

3,976
(2,229)		 159,736
3,976
(2,229)
- 161,483 161,483
1,671,863 5,349 1,677,213
1,631,863 8,041 1,639,904

The gross book value of freehold land and buildings consists of the Parish Centre with a cost of £681,863 and St Peter’s House and 14 Wilton Court with a combined valuation of £990,000. The two clergy houses were valued by Michael Usher Sales & Lettings, estate agents and valuers, on the basis of fair value at 31st December 2020.

Parochial Church Council of St Peter’s Church Farnborough

26

FINANCIAL STATEMENTS

(continued)

8
Debtors
Income tax recoverable
Inter fund balances
Other debtors		 Unrestricted
Funds
£
18,039
-
994
19,033		 Restricted
Funds
£
2,916
173
3
3,092		 2020
Total
£
20,955
173
997
22,125		 2019
Total
£
19,937
1,680
365
21,983
9
Liabilities: Amounts falling due within one year
Unrestricted
Funds
£
Inter fund balances
173
Accruals
4,002
Other creditors
3,315
7,490		 Restricted
Funds
£
-
-
6,353
6,353		 2020
Total
£
173
4,002
9,668
13,843		 2019
Total
£
1,680
3,160
6,274
11,115

Parochial Church Council of St Peter’s Church Farnborough

27

FINANCIAL STATEMENTS

(continued)

10 Restricted Funds

Restricted Funds
2020
Balance
at 31st
December 2019
£
Restricted Funds:
Bellringers
1,836
Charities Fund
1,784
Cricket Club
236
Flower Fund
1,370
Mission Fund
27,598
Parish Building Fund
30,849
63,673
2019
Balance
at 31st
December 2018
£
Restricted Funds:
Bellringers
1,722
Charities Fund
1,238
Cricket Club
238
Flower Fund
2,188
Mission Fund
29,771
Parish Building Fund
26,317
61,475		 Movements in Funds:
Income
Expenditure,
gains, losses and
transfers
£
£
376
255
231
2,007
-
-
398
838
69,941
70,886
1,699
-
72,646
73,987
Movements in Funds:
Income
Expenditure,
gains, losses and
transfers
£
£
1,273
1,159
2,067
1,521
343
345
2,944
3,761
72,607
74,780
7,109
2,578
86,342
84,144		 Balance
at 31st
December
2020
£
1,957
8
236
930
26,653
32,548
62,332
Balance
at 31st
December
2019
£
1,836
1,784
236
1,370
27,598
30,849
63,673

The Restricted Funds consist of the following funds:

Fund Parish Building Fund

Mission Fund

Purpose Funds raised for capital building projects costing £35,000 or more. It has been used for the construction of the Church of the Good Shepherd, construction of the Parish Centre, restoration of the Church Tower, the Church Reordering Project and the 2018 Church Lighting Project.

Funds raised by parishioners for the express purpose of giving away to Mission.

Other Church Groups These are funds held by the various Church Groups for the purposes specified.

Parochial Church Council of St Peter’s Church Farnborough

28

FINANCIAL STATEMENTS

(continued)

11 Cash Flow from Operating Activities

FINANCIAL STATEMENTS
(continued)
1
Cash Flow from Operating Activities
Net income/(expenditure) for the year (as per the
Statement of Financial Activities)
Adjustments for:
- Depreciation charges
- (Gains)/losses on fixed assets
- Dividends, interest and rents from investments
- (Increase)/decrease in debtors
- Increase/(decrease) in creditors
Net cash provided by (used in) operating activities		 2020
£
85,539
3,976
(40,000)
166
(142)
2,729
52,268		 2019
£
(74,813)
4,117
75,000
593
2,746
4,047
11,690