The Parish Church of the Good Shepherd Sand Hill Farnborough GU14 8ER
Annual Report and Financial Statements
of the Parochial Church Council
for the year ended 31 December 2021
Incumbent Revd Russell M Smart The Vicarage 45, Sand Hill Farnborough GU14 8ER
Banks
National Westminster Bank plc CAF (Charities Aid Foundation)
CCLA Investment Management Ltd (CBF Church of England Fund)
Cambridge and Counties Bank Charity Bank Ltd
Independent Examiner:
Mr Stephen Marriott Pennines. Guildown Road, Guildford GU2 4EU
Registered Charity No 1127829
The Parish Church of the Good Shepherd – Annual Report for 2021
Administrative information
The Parish Church of the Good Shepherd is situated in Sand Hill, Farnborough, Hampshire. Together with the Parish of St. Peter’s it forms the North Farnborough Group Ministry as part of the Diocese of Guildford within the Church of England. The church’s patron is the Church Pastoral Aid Society.
The Parochial Church Council (PCC) of the Church of the Good Shepherd is a charity, registered with the Charity Commission as Registered Charity Number 1127829.
PCC members who have served from 1 January 2021 until the date this report was approved are:
| Incumbent: | Revd Russell Smart | Chairman |
|---|---|---|
| Wardens: | Lance Nevill | |
| Steven Robinson | (to 26.5.2021) | |
| Jacqui Ward | (from 26.5.2021) | |
| Representatives on the Deanery Synod: | ||
| Malc Bardsley | ||
| Alison Lake | ||
| Sarah Smart | (from 26.5.2021) | |
| Elected Members: | Ben Edwards | |
| Dianne Elsey | (to 26.5.2021) | |
| Robert McKee | ||
| Bev Marchment | Secretary | |
| Derick Musonda | ||
| Dianne Pickford | ||
| David Riddlestone | ||
| Steven Robinson | (from 26.5.2021) | |
| Marian Rudall | Treasurer | |
| Doris Rudd | ||
| Carole Speller | (from 26.5.2021) | |
| Terence Thomson | ||
| Sue Troughton | ||
| Jacqueline Ward | (to 26.5.2021) | |
| Co-opted Members | Judith Hillary | (from Deaf church) |
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The Parish Church of the Good Shepherd – Annual Report for 2021
Structure governance and management
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 method of appointment of PCC members is set out in the Church Representation Rules. All Church attendees are encouraged to register on the Electoral Roll and stand for election to the PCC.
The PCC operates through a small number of committees, which meet between full meetings of the PCC.
The Standing Committee 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. The Standing Committee consists of the Vicar, Wardens, Secretary and Treasurer.
Safeguarding
The PCC has a safeguarding policy and appoints a Safeguarding Officer who acts as a focal point for concerns. All key staff and volunteers working with children and vulnerable adults are recruited using Safer Recruitment principles and are checked with the Disclosure and Barring Service. Clergy receive regular safeguarding training through the Diocese of Guildford and training is undertaken by other staff and volunteers as required. The PCC receives an annual report on safeguarding and reviews the safeguarding policy. Additionally, safeguarding is an item on the agenda of every PCC meeting.
Objectives and activities
The PCC of the Church of the Good Shepherd has the responsibility of co-operating with the Vicar in promoting in the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for the Church of the Good Shepherd, Sand Hill, Farnborough and its grounds. The incumbent and the PCC have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.
Church attendance
There are 144 parishioners on the Church Electoral Roll, 28% of whom are resident within the parish. The average Sunday attendance at services across the year was 74 (2020-75). This number continues to reflect the impact of Covid-19. Our services went online at the beginning of the pandemic and although we are now able to meet in person, several of our congregation have chosen to continue to participate in our services on line. Until the end of March 2020 when the church building was closed our average attendance had been around 100.
Review of the year
The full PCC met eight times during 2021, with the Standing Committee meeting twelve times.
We were hopeful that 2021 would see a return to normal life after the major disruption caused by COVID-19 in 2020. However, we were still subject to many restrictions which limited what we were able to do.
The good news for us was that our new youth and children’s minister, Mandy Watts, just started her new role in December 2020 and she was able to meet people online and visit some people outdoors when dropping off ‘Faith at Home’ packs. This became a great way for people to get to know her during all the restrictions we faced during that time.
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The Parish Church of the Good Shepherd – Annual Report for 2021
Review of the year (contd)
We continued to livestream services in church via Zoom and Facebook for people to participate in at home or watch later on YouTube. As time went on and limited numbers of people were allowed back in the church building, we were able to offer hybrid services.
We took the opportunity through Lent and Easter to produce many videos for schools, Messy Church, all age services, and a Lent course too. We aimed to provide something online for everyone who had internet access.
In April the diocese organised a big online PCC away day and we all gathered together to think about our church development plan and our priorities for the year ahead. It was a useful time and is something we plan to do each year to help focus us on our ministry and mission.
By the time we reached the summer many of the restrictions were being relaxed and more people were slowly returning to the church building. At the beginning of August we launched our CAP job club, which has been appreciated by those who have taken advantage of it.
With restrictions easing over the summer, we able to enjoy the nice summer weather and the annual cream tea on the church field. It was lovely to gather people together again after what felt like such a long time. Then as we moved into autumn, we were full steam ahead with our regular programme of activities and events. That was until December when new restrictions were imposed following the spread of the new variant of the virus ‘Omicron’. We were able to have most of our Christmas services and activities, but people were cautious and numbers attending were often reduced.
Our Larder food bank was heavily used again in 2021 with nearly 800 parcels being distributed to referred clients. We introduced ‘No Questions Asked’ bags in April and nearly 400 bags of essential food items were collected by anyone who wanted one.
Financial review
During 2021, total donations to the Church of the Good Shepherd, increased by nearly 7% to £200,057. Expenditure increased from £190,647 to £222,938, reflecting the return to activities following a long period where the church building was closed because of the Covid-19 pandemic. The Church’s 2021 contribution to Parish Share of £69,236 was met in full. At the end of the year £5,000 was transferred from general reserves to a designated fund to meet the costs of major repairs to our buildings and the general reserves increased by £2,476. We drew down £10,000 from the Youth and Children’s Minister fund, less than budgeted for, despite this being the first full year of employment.
Reserves policy
The PCC’s policy is to maintain a minimum balance on unrestricted funds of three months’ expenditure. The balance held at 31 December 2021 was £51,488 which equates to nearly three and a half months’ budgeted expenditure for 2022. These additional reserves will used to offset the approved negative budget for 2022.
Missions Policy
The church aims to give 10% of its donated and investment income to other local, national, and overseas mission organisations.
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The Parish Church of the Good Shepherd – Annual Report for 2021
Independent Examiner's Report to the Parochial Church Council of The Church of the Good Shepherd, Farnborough
I report on the accounts for the year ended 31 December 2021 which are set out on pages 5 to 13.
Respective responsibilities of the PCC and Independent Examiner
The PCC considers that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
-
examine the accounts under section 145 of the 2011 Act;
-
follow the procedures laid down in the General Directions given by the Charity Commissioners section 145 (5)(b) of the 2011 Act; and
-
state whether particular matters have come to my attention.
Basis of Independent Examiner’s Statement
My examination was carried out in accordance with the General Directions given by the Charity Commission.
An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the PCC concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in a full audit, and consequently I do not express an audit opinion on the accounts.
Independent Examiner's Statement
In connection with my examination, no matters have come to my attention
-
(1) which give me reasonable cause to believe that in any material respect the requirements
-
to keep accounting records in accordance with s.130 of the 2011 Act; or
-
to prepare accounts which accord with these accounting records have not been met; or
-
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Stephen Marriott MA FRSA Pennines. Guildown Road, Guildford GU2 4EU 30 March 2022
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The Parish Church of the Good Shepherd – Annual Report for 2021
Statement of Financial Activities
For the year ending 31 December 2021
| Notes INCOME FROM: Donations 2a Investments 2b Church activities 2c Total income EXPENDITURE ON: Church activities 3 Total expenditure Net income/(expenditure) before transfers Transfers between funds 11 Net movement in funds Fund balances brought forward at 1 January 2021 Fund balances carried forward at 31 December 2021 |
Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020 £ £ £ £ £ £ 162,276 37,781 200,057 159,831 27,275 187,106 1,209 - 1,209 2,012 - 2,012 8,423 - 8,423 5,989 - 5,989 |
|---|---|
| 171,908 37,781 209,689 167,832 27,275 195,107 |
|
| 173,514 49,424 222,938 134,447 56,200 190,647 |
|
| 173,514 49,424 222,938 134,447 56,200 190,647 |
|
| (1,606) (11,643) (13,249) 33,385 (28,925) 4,460 9,082 (9,082) - (14,926) 14,926 - |
|
| 7,476 (20,725) (13,249) 18,459 (13,999) 4,460 174,012 59,405 233,417 155,553 73,404 228,957 |
|
| 181,488 38,680 220,168 174,012 59,405 233,417 |
The notes on pages 7 to 13 form part of these accounts.
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The Parish Church of the Good Shepherd – Annual Report for 2021
Balance Sheet
At 31 December 2021
| Note FIXED ASSETS Tangible fixed assets 7 CURRENT ASSETS Debtors 8 Cash at bank and in hand 9 LIABILITIES Creditors - amounts falling due within one year 10 NET CURRENT ASSETS TOTAL NET ASSETS PARISH FUNDS 11 Restricted Unrestricted: Designated funds General funds (free reserves) 12 |
2021 2020 £ £ 11,268 5,662 3,944 6,709 207,598 225,034 |
|---|---|
| 211,542 231,743 (2,642) (3,988) |
|
| 208,900 227,755 |
|
| 220,168 233,417 |
|
| 38,680 59,405 130,000 125,000 51,488 49,012 |
|
| 220,168 233,417 |
The notes on pages 7 to 13 form part of these accounts.
Approved by the Parochial Church Council on 30 March 2022 and signed on its behalf by:
R Smart Incumbent
B Marchment PCC Secretary
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The Parish Church of the Good Shepherd – Annual Report for 2021
Notes to the Financial Statements
For the year ended 31 December 2021
1 Accounting policies
The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the Charities SORP FRS102.
The financial statements have been prepared under the historical cost convention. The financial statements 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.
Funds
Restricted funds represent a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest, and b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. The PCC does not usually invest separately for each fund.
Designated funds are unrestricted funds which the PCC has earmarked for a particular purpose. The aim and use of each designated fund is set out in the notes to the financial statements.
Unrestricted funds are general funds which can be used for PCC ordinary purposes.
Income: Planned giving, collections and donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is received. Grants and legacies are accounted for when the PCC is legally entitled to the amounts due. All other income is recognised when it is receivable. All incoming resources are accounted for gross. The value of gifts donated for the Larder is calculated by valuing the parcels given out and deducting the costs of items purchased.
Expenditure: This includes all expenditure incurred in meeting the church’s main objectives and includes all costs in support of those objectives. Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. The diocesan parish share is accounted for when due.
Fixed assets
Consecrated and benefice property is not included in the accounts in accordance with s96(2)(a) of the Charities Act 1993.
Moveable church furnishings held by the Incumbent and Churchwardens on special trust for the PCC, and which require a faculty for disposal, are inalienable property, listed in the Church’s inventory, which can be inspected (at any reasonable time). For anything acquired prior to 2000 there is insufficient cost information available and therefore such assets are not valued in the financial statements.
Equipment used within the church premises is depreciated on a straight line basis over 5 years. Individual items of equipment with a purchase price of £1,000 or less are written off when the asset is acquired.
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The Parish Church of the Good Shepherd – Annual Report for 2021
Notes to the Financial Statements (continued)
For the year ended 31 December 2021
| 2 Income a Donations Planned giving: Gift aid donations Income tax recoverable Other planned giving Legacy Collections at services Grants Donations/appeals etc Value of food given for Larder b Investments Bank and other interest c Church activities Bookstall Church hall lettings Fees Miscellaneous TOTAL INCOME |
Unrestricted funds Restricted funds Total 2021 Total 2020 £ £ £ £ 114,701 2,240 116,941 115,048 30,036 545 30,581 28,166 15,891 900 16,791 18,037 100 - 100 339 15 354 292 - 5,000 5,000 2,763 1,209 4,386 5,595 1,266 - 24,695 24,695 21,534 |
|---|---|
| 162,276 37,781 200,057 187,106 |
|
| 1,209 - 1,209 2,012 |
|
| 1,209 - 1,209 2,012 |
|
| 367 - 367 378 7,093 - 7,093 4,062 518 - 518 834 445 - 445 715 |
|
| 8,423 - 8,423 5,989 |
|
| 171,908 37,781 209,689 195,107 |
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The Parish Church of the Good Shepherd – Annual Report for 2021
Notes to the Financial Statements (continued)
For the year ended 31 December 2021
3 Expenditure
| xpenure Missionary and charitable giving: Overseas Mission organisations Relief and development agencies Home mission Secular charities Ministry: Diocesan parish share Other ministry costs Larder Office expenses Church and hall running expenses Church and grounds maintenance Bookstall Salaries and pension Training costs Special events Total expenditure 4 Staff costs Salaries National Insurance Pension costs |
Unrestricted funds Restricted funds £ £ - 11,500 - 1,500 100 2,480 - 1,105 |
Total 2021 Total 2020 £ £ 11,500 10,660 1,500 1,440 2,580 2,980 1,105 540 |
|---|---|---|
| 100 16,585 |
16,685 15,620 |
|
| 69,236 - 10,562 147 - 32,692 541 - 10,104 - 10,469 - 339 - 71,482 - 523 - 158 - |
69,236 69,236 10,709 6,442 32,692 23,890 541 1,063 10,104 9,046 10,469 20,555 339 411 71,482 44,262 523 47 158 75 |
|
| 173,414 32,839 |
206,253 175,027 | |
| 173,514 49,424 |
222,938 190,647 |
|
| 2021 2020 £ £ 67,704 42,021 19 - 3,759 2,241 |
||
| 71,482 44,262 |
During 2021 the PCC employed a parish secretary, a Pioneer Community Worker, a Youth and Children’s Minister and a church cleaner, none of whom earned £60,000 or more. The Pioneer Community Worker, Mrs A Edwards is closely connected to a member of the PCC and was paid £26,520 during the year (2020 - £26,000). The PCC contributed £1,525 (2020 - £1,495) in pension costs for Mrs Edwards. The Pioneer Community Worker and the Youth and Children’s Minister were reimbursed for expenses incurred in carrying out their duties.
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The Parish Church of the Good Shepherd – Annual Report for 2021
Notes to the Financial Statements (continued)
For the year ended 31 December 2021
5 Pension Scheme
The Church of the Good Shepherd participates in the Pension Builder Scheme section of 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 CWPF 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.
Pension Builder Scheme
The Pension Builder Scheme of the CWPF is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes. The Church of the Good Shepherd participates in the latter section.
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. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
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 means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the Statement of Financial Activities in the year are contributions payable (2021: £3,759; 2020: £2,241).
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent scheme valuation completed was carried out as at 31 December 2019. The next valuation is due at 31 December 2022. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, Church of the Good Shepherd could become responsible for paying a share of that employer’s pension liabilities.
6 Trustees
None of the PCC members was paid any remuneration or received any benefit from an employment with the charity but, where appropriate, were reimbursed out-of-pocket expenses. 11 (2020 – 8) trustees were reimbursed a total of £2,408 (2020 - £2,981) during the year for expenses incurred on behalf of the church. Donations received from members of the PCC and their related parties amounted to £58,101 (2020 - £52,930) in the year.
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The Parish Church of the Good Shepherd – Annual Report for 2021
Notes to the Financial Statements (continued)
For the year ended 31 December 2021
7 Fixed assets for use by the PCC
| 7 Fixed assets for use by the PCC | |
|---|---|
| , Actual / deemed costAt 1 January 2021 Additions At 31 December 2021 DepreciationAt 1 January 2021 Charge for the year At 31 December 2021 Net Book ValueAt 31 December 2021 At 31 December 2020 |
Church Equipment Total £ £ 18,657 18,657 9,317 9,317 |
| 27,974 27,974 |
|
| 12,995 12,995 3,711 3,711 |
|
| 16,706 16,706 |
|
| 11,268 11,268 5,662 5,662 |
Church equipment comprises office equipment, two video projectors, a sound desk, hybrid services equipment, worship area chairs and kitchen equipment.
8 Debtors
| Debtors | ||
|---|---|---|
| 2021 |
2020 | |
| £ |
£ | |
| Income tax recoverable | 3,251 | 5,266 |
| Prepayments and accrued income | 290 | 628 |
| Other debtors | 403 | 815 |
| 3,944 | 6,709 | |
| Cash and bank accounts | ||
| 2021 |
2020 | |
| £ |
£ | |
| Charities Aid Foundation current account | 9,198 | 32,155 |
| Nat West current account | 16,048 | 11,407 |
| Cambridge and Counties Bank 95 day access | 61,942 | 61,329 |
| Cambridge and Counties Bank 60 day access | 27,470 | 27,226 |
| CBF Deposit Fund | 36,381 | 36,362 |
| Charities Aid Foundation | 6,559 | 6,555 |
| Charity Bank 1 year fixed term account | 50,000 |
50,000 |
| 207,598 | 225,034 |
9 Cash and bank accounts
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The Parish Church of the Good Shepherd – Annual Report for 2021
Notes to the Financial Statements (continued)
For the year ended 31 December 2021
10 Creditors
| Amounts falling due within one year: | 2021 2020 £ £ 2,642 3,988 |
|---|---|
11 Statement of funds
Restricted funds
| Larder Community Banner workshop Chairs and carpets replacement Youth and Children’s Minister Flower stand Church for deaf people Mission Fund Spring Harvest |
Balance at Incoming Resources Balance at 1 Jan 2021 resources Expended Transfers 31 Dec 2021 £ £ £ £ £ 3,320 31,721 32,692 - 2,349 147 - 147 - - 454 - - - 454 4,457 - - (4,457) - 50,000 5,000 - (20,000) 35,000 21 - - - 21 306 - - - 306 550 1,060 16,585 15,375 400 150 - - - 150 |
|---|---|
| 59,405 37,781 49,424 (9,082) 38,680 |
The Larder Fund is for the provision of food and essential household items to people within the local community. The transfer to the Mission Fund is from general funds to cover the shortfall of income over expenditure for that fund. The transfers from the Chairs and Carpets Replacement and Youth and Children’s Minister Funds are to the General Fund to cover expenditure on those items during the year.
Unrestricted funds
| Designated funds: Development fund Major repairs fund General funds: Free reserves |
Balance at Incoming Resources Balance at 1 Jan 2021 resources Expended Transfers 31 Dec 2020 £ £ £ £ £ 95,000 - - - 95,000 30,000 - - 5,000 35,000 |
|---|---|
| 125,000 - - 5,000 130,000 49,012 171,908 173,514 4,082 51,488 |
|
| 174,012 171,908 173,514 9,082 181,488 |
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The Parish Church of the Good Shepherd – Annual Report for 2021
Notes to the Financial Statements (continued)
For the year ended 31 December 2021
11 Statement of funds (continued)
Funds are held in the Development Fund to provide for the future development of the church’s ministry and it is anticipated that these will be used up over the next five years as we build up our regular giving to meet the cost of employing a Youth and Children’s Minister.
The Major Repairs Fund is being built up so that funds are available when major repairs are required to our buildings.
12 Analysis of net assets by fund
| . Fixed assets for church use Current assets Current liabilities Fund balance |
Unrestricted Restricted Total Funds Funds 2021 £ £ £ 11,268 - 11,268 172,654 38,888 211,542 (2,434) (208) (2,642) |
|---|---|
| 181,488 38,680 220,168 |
13 Mission and charitable giving
Overseas mission
| Church Mission Society Crosslinks / Arise - Debbie and Alan Burt Operation Mobilisation (OM) - Jenny and Nihad Shihadi Relief and development agencies Open Doors Tearfund Home mission BSL Translation Christian Deaflink Church Pastoral Aid Society (CPAS) Connect Christian Counselling Interserve Signs of God The Triangle Secular charities Step-By-Step |
1,450 5,020 5,030 750 750 320 50 750 570 50 270 570 1,105 |
|---|---|
| 16,685 |
Additionally, special offerings have been taken up for Children’s Society, Disaster Emergencies Committee for Afghanistan, National Deaf Children’s Society, Tearfund and Vaccine Aid.
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