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Report of the Independent Examiner to the Parochial Church Council of St John the Evangelist, Dormansland
Charity Number 1127745
| report on the financial statements of the Parochial Church Council of St John the Evangelist, Dormansland, for the year ended 31%* December 2020 which are set out on pages2 to 5.
Respective responsibilities of the Council members and Examiner
The Charity’s Council members are responsible for the preparation of the financial statements and they consider that an audit is not required for this year under section 144 of the Charities Act 2011 (‘the Charities Act’) and that an independent examination is needed. It is my responsibility to:
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e examine the financial statements under section 145 of the Charities Act, e to follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b)) of the Charities Act, and
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e to state whether particular matters have come to my attention.
Basis of Independent Examiner’s statement
My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from the Charity’s Council members concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
Independent Examiner’s statement
In connection with my examination, no material matters have come to my attention which give me cause to believe that in any material respect:
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e the accounting records were not kept in accordance with section 130 of the Charities Act; or e the financial statements did not accord with the accounting records; or
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e the financial statements did not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
i have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
(a2 Pte YX
RJ E Bamford, FCA Chartered Accountant
Dated: 11 March 2021
9 Peter Avenue Oxted Surrey RH8 9LG
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St. John The Evangilist Church, Dormansland Financial Statements for the year ended 31 December 2020
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|---|---|---|---|---|---|---|---|---|---|---|
|Unrestricted|Funds|Restricted|Total|Total|
|General|Designated|Funds|2020|2019|
|Receipts and|Payments Account|£|£|£|£|£|
|Receipts|
|Voluntary Receipts|
|Regular Giving|
|Planned|Giving|27479|27479|27471|
|Collections|and|other|giving|929|929|3889|
|Income|tax|recovered|8543|125|8668|10712|
|Other|voluntary receipts|
|Donations|(note2)|3280|5250|8530|13638|
|Grant|for|upkeep|of churchyard|2000|2000|4000|
|Receipts from activities forgenerating funds|
|Village|Voice-|donations|and|adverts|3188|3188|4457|
|Letting|the|Parish|Room|& Centenary|Room|410|8627|9037|14168|
|Fundraising|and|Appeals|(note|3)|6989|6989|6045|
|Receipts from church activities|
|Fees|for weddings and|funerals|6504|6504|5776|
|Receipts from investments|
|CBF|deposit|account|interest|473|10|483|627|
|Total|Receipts|54607|13815|5385|73807|90783|
|Payments|
|Church activities|
|Diocesan|parish|share|43100|43100|42240|
|Church|running|expenses|10590|10590|12753|
|Clergy|expenses|3404|3404|2858|
|Cost|of|services|1373|1373|5352|
|Cost|of AV|system|0|0|11390|
|Maintenance|of|buildings|and|organ|2426|100|2526|2488|
|Quinquenial|review|0|0|1028|
|Printing,|stationary and|computer|642|642|204|
|Printing|the|Village|Voice|530|3188|500|4218|6635|
|Maintenance|of|Parish|Room|0|3679|2052|5731|5982|
|Maintenance|of churchyard|4668|2000|6668|4500|
|Charitable|giving|(note|4|)|1367|2990|4357|3659|
|Cost ofgenerating funds|
|Cost|of fundraising|0|0|647|
|Total|Payments|68100|8867|5642|82609|99736|
|Excess of payments over receipts|(-)|-13493|4948|-257|-8802|-8953|
|Transfers|between|funds|(note|6)|4948|-4948|0|0|0|
|-8545|0|“257|-8802|-8953|
|Cash|funds|at|1|January|2020|26906|70000|4596|101502|110455|
|Cash|funds at 31|December|2020|18361|70000|4339|92700|101502|
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Statement of Assets and Liabilities
| Unrestricted Funds | Unrestricted Funds | Restricted | Total | Total | |
|---|---|---|---|---|---|
| General | Designated | Funds | 2020 | 2019 | |
| £ | £ | £ | £ | £ | |
| Cash Funds | |||||
| NatWestBank current account | 10184 | 0 | 0 | 10184 | 14009 |
| CBF Deposit Funds | 8168 | 70000 | 4339 | 82507 | 87484 |
| Petty Cash float | 9 | 0 | 0 | 9 | 9 |
| Total cash assets | 18361 | 70000 | 4339 | 92700 | 101502 |
| OtherMonetary Items | |||||
| IncomeTax Recoverable for 2020 | 8500 | 0 | 0 | 8500 | 8500 |
| OtherAssets | |||||
| Chalice | 1200 | 0 | 0 | 1200 | 1200 |
| Collator | 1 | 0 | 0 | 1 | 1 |
| Boiler | 2172 | 0 | 0 | 2172 | 3022 |
| Cooker | 59 | 0 | 0 | 59 | 89 |
| Hand dryers | 221 | 0 | 0 | 221 | 346 |
| Blinds | 480 | 0 | 0 | 480 | 640 |
| AVEquipment | 10413 | 0 | 0 | 10413 | 15620 |
| 14546 | 0 | 0 | 14546 | 20918 | |
| Liabilities | |||||
| OtherLiabilities | 0 | 0 | 0 | 0 | 0 |
The attached notes on pages 4 and 5 form part of these financial statements
The Financial Statements on pages 2 to 5 were approved by the Parochial Church Council on 11 March 2021 and are signed on their behalf by:
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tif ji
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\ |
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The Reverand Nigel Hinton (Chairman)
David Jessup (Honarary Treasurer)
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Notes to the Financial Statements
1 Accounting Policies
Basis ofAccounting
The Financial Statements of the PCC have been prepared in accordance with the Church Accounting Regulations 2006, as amended by the provisions of the Charities Act 2006 using the Receipts and Payments basis with items recognised at cost or transaction value and in accordance with applicable accounting standards.
2 Restricted Donations
| 2 Restricted Donations | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Mission Fund donations: | ||
| Donations by individuals (2020£481credited togeneral fundssee note 6) | 0 | 1583 |
| Donationsfromthe League ofFriends ofStJohns | 0 | 5000 |
| Total Mission Fund Donations | 0 | 6583 |
| Grants for introduction ofa chairlift | 1000 | 1300 |
| Grantsforthe production oftheVillageVoice | 500 | 800 |
| Grants forthe maintenance ofthe Parish Room | 0 | 250 |
| Grantfor MessyChurch | 0 | 227 |
| Grant forthe ChristmasTree | 100 | 100 |
| Donationsfor Dormansland peoplesuffering undulyfrom Covid | 3650 | 0 |
| 5250 | 9260 | |
| 3 Fundraisingand Appeals(gross income) | ||
| 2020 | 2019 | |
| £ | £ | |
| Fundraisingand social events | 66 | 2100 |
| Bishop's LentAppeal | 145 | 345 |
| HarvestAppeal | 90 | 623 |
| Haig Fund - Remembrance Day | 69 | 310 |
| Christmas Appeal to include Christingle collections | 422 | 1552 |
| FloodlightingAppeal | 370 | 215 |
| September General Appeal | 5827 | 0 |
| 6989 | 6045 | |
| 4 Charitable Giving | ||
| 2020 | 2019 | |
| £ | £ | |
| Age Concern-Oxted | 600 | 600 |
| Bishops LentAppeal | 145 | 594 |
| Haig Fund (Remembrance) | 200 | 310 |
| From HarvestAppeal (in2020theHarvestAppealwas limiteddue to Covid) | ||
| (2019WaterAid) | 0 | 483 |
| (2019 Toilet Twinning) | 0 | 120 |
| From ChristmasAppealand Christingle collections: | ||
| Welcare (2019 Crisisfrom Christmas) | 197 | 442 |
| Children's Society(2020and 2019) | 225 | 669 |
| (2019 StarlightChildren's Foundation) | 0 | 442 |
| Covid reliefin Dormansland payments | 2990 | 0 |
| 4357 | 3659 |
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5 Emoluments, Fees and Honoraria paid to members of the PCC, their related parties and others.
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|---|---|---|---|---|---|---|---|---|
|2020|2019|
|Organists|and|musicians,|including temporary|organists|£130|£3,574|
|Parish|Room|management--collecting|hire|charges|and|maintenance|£87|£1,040|
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None of the above were to members of PCC and all were for services to PCC. There were no other payments to PCC members or their related parties except for reimbursement of Parish expenditure incurred in the course of their normal duties.
6 Funds
Designated Funds
These funds are general funds which have been designated by the PCC for the particular purpose shown. These funds remain unrestricted and the PCC will move any surplus to other general funds as deemed appropriate.
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|---|---|---|---|---|---|---|---|---|---|---|---|
|Parish|Village|Churchyard|Church|Total|
|Room|Voice|Building|
|Maintenance|Improvement|
|£|£|£|£|£|
|At|1 January 2020|20000|0|0|50000|70000|
|Income|8627|3188|2000|0|13815|
|Expenditure|in|the year|3679|3188|2000|0|8867|
|Transfer to general fund|4948|0|0|0|4948|
|At|31|December 2020|20000|0|0|50000|70000|
|The|Church|Building|Improvement|and|Parish|Room|Funds|comprises|cash|designated for future|improvements.|
|income from|Parish|Room|lettings, the Village Voice|and|Churchyard|Grant|are designated|for|related|expenditure.|
|All|the|reserved amounts above|are set|by the|PCC and|are|reviewed|annually.|.|
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Restricted Funds
These funds comprise revenue donations or grants for a specific PCC activity intended by the donors
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|---|---|---|---|---|---|---|---|---|
|MirsJ|Rever|Stairlift|Covid|Other|restricted|Total|
|Parish Room|Fund|Relief|Donations|Restricted|
|Fund|and Appeals|Funds|
|£|£|£|£|£|
|At 1 January 2020|3296|1300|0|0|4596|
|Donations|received|in the year (note|2)|10|1000|3775|600|5385|
|Expenditure|in|the year|2052|0|2990|600|5642|
|At|31|December 2020|1254|2300|785|0|4339|
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At 31 December 2019, the Audio Visual project to which the Mission fund was applied was complete. At that date, expenditure was in excess of £542 of income. This excess was charged to general funds at 31 December 2019. In the year to 31 December 2020, £481 was received for the Mission fund which was hence credited directly to general funds. This Mission Fund is therefore regarded as closed.
The Covid Relief fund is for the benefit of people living in Dormansland suffering undue stress and hardship as a result of Covid At 31 December 2020 this comprised;
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|---|---|---|---|---|---|---|---|---|---|
|Donations|Donations|Remaining|
|received|made|balance|
|£|£|£|
|Donations|received|directly by the|PCC,|including|related|Gift Aid|1275|651|624|
|Amounts|donated to third|parties and|held to their account by the PCC|2500|2339|161|
|3775|2990|785|
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St John the Evangelist, Dormansland Annual Report of the Parochial Church Council For the year ended 31 December 2020
Reference and Administrative Details
The Parochial Church Council of St John the Evangelist, Dormansland (“the PCC”) has the responsibility of co-operating with the incumbent, a vacant position during the year subsequently filled by the Reverend lan Whitley and with the Associate Vicar, the Reverend Nigel Hinton, in promoting the ecclesiastical Parish of Dormansland in the whole mission of the Church, pastoral, evangelistic, social and ecumenical. The Parish is joined with that of Lingfield to comprise a United Benefice. It is a charity registered with the Charity Commission in England and Wales, registration number 1127745. The address for correspondence is St John’s Vicarage, The Platt, Dormansland, Surrey, RH7 6QU.
The attached financial statements are prepared under the Church Accounting Regulations 2006 using the Receipts and Payments basis with items recognised at cost or transaction value unless otherwise stated and in accordance with applicable accounting standards.
Structure, Governance and Management
Members of the PCC are the managing Trustees of St John’s and therefore have the responsibility of Charity Trustees. They are either ex officio or elected by the Annual Parochial Church Meeting (“APCM”) in accordance with the Church Representation Rules anda list of those can be found in the minutes of the APCM to be held on 18 April 2021. These minutes are attached to the report accompanying these financial statements. The PCC members who served during the year were:
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|---|---|---|---|---|---|
|Ex|officio|Other elected Members|
|The|Reverend|Nigel|Hinton|(Incumbent)|Katherine Cobby|
|William|Davies|
|Elected Members|Ann|Mackie|
|Raymond|Daines|(Church|Warden}|Zoe|Nichols|
|Clive|Cobby|(Church|Warden)|John|Pordum|
|David|Jessup|(Treasurer)|Wendy|Rose|
|Susan|Calamassi|(Deanery Synod)|Rosemary Williams|
|Jim|Lee|(Deanery Synod)|
|Cynthia|Taylor (Deanery Synod)|Secretary to PCC but not|a member of PCC|
|Graham Taylor (Deanery Synod)|Phil|Durell|(Resigned in|the year)|
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The full PCC meets at least six times during the year. The process for appointment of PCC members is set out in the Church Representation Rules and they are elected by those members of the congregation of St John’s who are on the electoral roll of the Church. They are responsible for making decisions on all matters of general concern and importance to the Parish including decisions on how the funds of the PCC are to be spent.
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Objectives and Activities (including Public Benefit)
The PCC is committed to enabling as many people as is possible to worship at the Church and to become part of the community at St John’s. The PCC maintains an overview of Anglican worship throughout the Parish and makes suggestions on how it services the many groups that live within it. Services and worship put faith into practice through prayer and scripture, music and sacrament.
When planning activities for the year, consideration is given to the Charity Commission’s guidance on public benefit and in particular, the supplementary guidance on charities for the advancement of religion. This is enabled through worship and prayer, provision of pastoral care as well as missionary and outreach work.
Financial Review
The results for the year have been severely impacted by the Covid pandemic. However, despite that, overall, the deficit in cash flow has been contained as marginally less than in 2019.
The following table is an estimate of the impact that Covid has had on the net deficit in comparison to last year, plus other factors that have resulted in only this relatively small net year-to-year movement.
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|---|---|---|---|---|---|---|---|---|---|---|
|£’000|£7000|
|Covid|related|impact|
|Reduction|in|amounts from|collections|in|services|-3.0|
|Lost income from|lettings|of|Parish|Room|and|Centenary|Room|-5.1|
|Lost|revenue from|Village Voice|advertising|-1.3|
|Lost|income|from|regular donors,|appeals|and|fundraising|activity|-4.9|
|-14.3|
|But the|organist was|not|replaced,|and|other service|costs were|less|4.0|
|Church|running|costs such|as|electricity and|gas were|less|2.2|
|Net|estimated|Covid|related|impact|-8.1|
|Resultant general|appeal|in|September|-- donations|5.8|
|Other fluctuations year to year that would|have occurred|anyway|
|Reduced|recovery|of Gift Aid|tax 2020|because|income|dropped|2019|-2.0|
|The AV|Mission|appeal|ended|2019 &|negative|cash|flow|not|repeated|4.8|
|2019|had|an|artificial|doubling|up|of churchyard|grant due|to timing|-2.0|
|2019|quinquennial|review|costs were|non-recurring|1.0|
|1.8|
|Other fluctuations year to year|(net)|0.6|
|Net fluctuation|year to year (2019 £8953|cf 2020 £8802|per page|2)|0.1|
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Hence it could be argued that the Covid impact could have been a Jot worse.
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In seeking to understand the underlying trends, at a high level, if the annual appeal is maintained at the sort of amounts that were produced in September 2020, then as things return to normal after Covid, the financial situation would be getting closer to a breakeven point. In addition, the PCC have agreed a reduction of 5% in the Parish Share for 2021, rather than the more normal inflationary increase. That will reduce costs in 2021 by approximately £2,000.
That said, it is still a fragile financial situation because a lot of recurring income is vested in regular giving from relatively few people. Sadly, as people pass on, the regular planned giving, which is our main source of income, needs to be replaced. Ultimately that must come from less senior members of the church. One focus for 2021 must be to encourage more new younger members to join St Johns and contribute regularly to the costs of running the church. PCC are grateful to a few younger members in 2020 who have made that move.
The PCC is mindful that a number of our regular supporters such as the Roland Callingham Foundation and the Dormansland Carnival Committee have been unable to help us financially to the extent they have in previous years. The League of Friends of St John’s have kindly signalled their ability to help financially, but the church’s own projects and initiatives have themselves been limited by Covid. We acknowledge the long-term commitment and work in supporting us to date and in the future, from all our loyal supporters.
We are grateful to Dormansland Parish Council and Surrey County Council for their valuable grants and gifts that have helped on a number of fronts and are also grateful to a number of individuals for their generous donations.
Income from the Parish Room was considerably reduced as above but nonetheless we are grateful to Anne van Vliet for managing the collection of hiring dues and the premises, in addition to editorial support to Village Voice. We are also pleased that Dormansland Pre-School has continued to use the facilities for their activities where practical and are grateful for that. We are also grateful to our other regular Parish Room users who have grappled with changing rules and constraints.
The income generated by Village Voice from advertising and donations was also reduced as above. We continue to support the enhanced appearance and quality of printing, commensurate for such an important source of news, editorial and service advertising to the village, aided by some grant income. Thanks are due to Roz Daly for co-ordinating advertising income, Tom Windsor for editorial, En Route for printing and the distribution team for their work.
The charitable giving has had to drop this year as a natural consequence of the factors described above. The PCC are committed to restoring charitable giving by St John’s to more usual levels in normal times.
Capital Commitments
At 31 December 2020, the PCC had non-contracted commitments to install a chairlift at a cost of c. £2,700. This project has been greatly assisted by a generous grant of £1,300 from Surrey County Council and a further donation of £1,000 from a kind individual. The chairlift will connect the main
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body of the church to the Centenary Room, to ease movement around the building for those less mobile. These funds are included within these financial statements with the expenditure to be incurred in 2021.
Reserves Policy
The PCC is committed to a policy of retaining sufficient free reserves in order to be able to sustain continued activities in the event of any unforeseen temporary reduction in income or unexpected major expense. At 31 December 2020 this requirement for free reserves was approximately £20,000 (2019 £20,000). It is estimated as 3 months normal expenditure which is in accordance with PCC intent and adopted policy.
Free reserves at 31 December 2020 amounted to £17,961 (2019 £24,842). This amount is calculated as total general funds less the unfunded commitment to purchase church equipment. These free reserves do not include designated reserves of £70,000, which have not been committed.
Continued Operations
The cash results for the last two years are not totally satisfactory. Whilst the PCC are taking actions to reduce future deficits, a successful program to return to a small surplus situation is required in 2021. There are significant reserves to absorb deficits, but it is important to manage finances in order to produce at least recurring surpluses and hence secure a long term sustainable situation.
The PCC will continue to focus on further integration with community activities in the village of Dormansland, in order to attract additional church attenders and also those interested in engaging with its wider activities, with the objective of continually striving to become more relevant.
The PCC encourage any attenders at church who are not already members of one of the planned giving schemes to consider joining one and where possible, to do that under Gift Aid provisions, which enable recovery of 25% of amounts donated from HMRC.
The PCC is not aware of any concerns that might impact the Charity’s ability to continue operating in normal fashion for the foreseeable future.
David Jessup FCA Honorary Treasurer to the PCC
11 March 2021