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2023-12-31-accounts

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 2023

Incumbent (to 15 March 2023)

Revd Russell M Smart

Incumbent (from 5 October 2023)

Revd Thea Edwards 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 2023

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 2023 until the date this report was approved are:

Incumbent: Revd Russell Smart (to 15.3.2023) Chair
Revd Thea Edwards (from 5 October 2023) Chair
Wardens: Lance Nevill Lay Chair
Jacqui Ward (to 24.5.2023)
Karen Dawson (from 24.5.2023)
Representatives on the Deanery Synod:
Malc Bardsley
Alison Lake
Sarah Smart (to 12.2.2023)
Elected Members: Ben Edwards (to 9.12.2023)
Bev Marchment Secretary
Derick Musonda
Dianne Pickford
Steve Reid
David Riddlestone
Steven Robinson
Marian Rudall Treasurer
Doris Rudd
Carole Speller
Richard Troughton
Peter Webb (to 7.2.2023)
Co-opted Members Judith Hillary (from Deaf church)

1

The Parish Church of the Good Shepherd – Annual Report for 2023

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 members are responsible for making decisions on all matters of general concern and importance to the parish, including deciding on how the funds of the PCC are to be spent. New members receive initial training into the workings of 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.

The full PCC met eight times during 2023, with the Standing Committee meeting thirteen times.

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, where appropriate, 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 Incumbent, the Revd Thea Edwards, 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 146 parishioners on the Church Electoral Roll, 29% of whom are resident within the parish. The average Sunday attendance at services across the year was 83 (2022-70). The October measure of ‘usual Sunday attendance’ was 95. These figures are for those attending in person but we also we live stream on YouTube.

Review of the year

2023 was marked by major change and considerable ‘forward movement’.

The ministry of the Revd Russ Smart came to an end in March, launching the church into a period of vacancy which lasted just six months when our new Vicar, the Revd Thea Edwards arrived. She was licensed on Thursday 5 October.

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The Parish Church of the Good Shepherd – Annual Report for 2023

Review of the year (contd)

Vacancies are always challenging, but over those months there was a gentle influx of families with children: this is now a highly positive continuing trend with its roots in the work of our Children and Families Minister, Mandy Watts. Our services continue to be available on YouTube but numbers on line have dwindled as physical attendance has increased.

Despite the absence on maternity leave, until late October, of our Licensed Lay Pioneer Minister and Community Worker, Abbie Edwards, Good Shepherd’s outreach ministries continued in 2023 with faithful volunteer support . ‘The Larder’, our long established food bank, saw demand growing markedly in the wake of cost of living increases. A weekly availability of ‘no questions asked’ bags of basic foods had to be reined back to monthly only because of heavy demand, but the number of delivered food parcels increased 25% over 2022 to 763. Olive Branch, providing clothing for children, also faced strong demand for the same reason.

Ministry to senior citizens and the popular monthly ‘Thursday Service’ has continued along with other important outreaches such as ‘Toddler Music Time’, Messy Church, Youth Club and POD - a small group with a focus on discipleship for young people.

The deaths of significant senior members involved at Good Shepherd since its earliest days meant that a series of major funerals were held in 2023. However, over the same period more infant Baptisms than usual highlighted that Good Shepherd continues to make an impact on the consciousness of the area. The year ended with wellattended Christmas services and a pervasive sense of warm vibrancy, perhaps summed up in the striking replacement sign on the face of the church building bearing our name and new logo, announcing to all what we stand for.

Our new vicar’s first sermon was on Micah 6.8: 'He has shown you what is good. And what does the Lord require of you? To act justly, love mercy and walk humbly with your God.' This encapsulates our call to follow Jesus and keep everything we do in reference to who God is and what God does. It will be important for us to evaluate and review our activities and ministry to build strategy and see transformed lives into the future. We look forward to 2024 and all that God will do in and through us here in Sandhill.

Financial review

During 2023, total donations to the Church of the Good Shepherd, increased by 8.1% to £223,791. Expenditure decreased from £239,547 to £226,151, mainly because a member of staff was on maternity leave and was not replaced full time. The Church’s 2023 contribution to Parish Share of £71,679 was met in full. At the end of the year the general reserves had increased by £10,264, in part due to the receipt of a substantial donation. We drew down £5,000 from the Youth and Children’s Minister fund, less than budgeted for.

Reserves policy

The PCC’s policy is to maintain a minimum balance on unrestricted funds of three months’ expenditure. It is held to smooth out fluctuations in cash flow and to meet emergencies. The balance held at 31 December 2023 was £55,573 which equates to just over three months’ budgeted expenditure for 2024.

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 2023

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 2023 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:

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

Stephen Marriott MA FRSA Pennines, Guildown Road, Guildford GU2 4EU 19 March 2024

4

The Parish Church of the Good Shepherd – Annual Report for 2023

Statement of Financial Activities

For the year ending 31 December 2023

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 2023
Fund balances carried forward
at 31 December 2023		 Unrestricted
Restricted
Total
2023
Unrestricted
Restricted
Total
2022
£
£
£
£
£
£
175,183
48,608
223,791
163,924
43,172
207,096
5,587
-
5,587
2,348
-
2,348
13,987 -
13,987
15,202
28
15,230
194,757
48,608
243,365
181,474
43,200
224,674
172,476
53,675
226,151
192,870
46,677
239,547
172,476
53,675
226,151
192,870
46,677
239,547
22,281
(5,067)
17,214
(11,396)
(3,477)
(14,873)
(12,017)
12,017
- 10,217
(10,217)
-
10,264
6,950
17,214
(1,179)
(13,694)
(14,873)
180,309
24,986
205,295
181,488
38,680
220,168
190,573
31,936
222,509
180,309
24,986
205,295

The notes on pages 7 to 13 form part of these accounts.

5

The Parish Church of the Good Shepherd – Annual Report for 2023

Balance Sheet

At 31 December 2023

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		 2023
2022
£
£
4,368
7,999
5,530
3,974
220,355
196,615
225,885
200,589
(7,744)
(3,293)
218,141
197,296
222,509
205,295
31,936
24,986
135,000
135,000
55,573
45,309
222,509
205,295

The notes on pages 7 to 13 form part of these accounts.

Approved by the Parochial Church Council on 19 March 2024 and signed on its behalf by:

Revd Thea Edwards B Marchment Incumbent PCC Secretary

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The Parish Church of the Good Shepherd – Annual Report for 2023

Notes to the Financial Statements

For the year ended 31 December 2023

1 Accounting policies

The PCC is a public benefit entity within the meaning of FRS102. The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs, and with the Regulations’ ‘true and fair view’ provisions, together with FRS102 (2016) as the applicable accounting standards and the 2016 version of the Statement of Recommended Practice, Accounting and Reporting by 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.

7

The Parish Church of the Good Shepherd – Annual Report for 2023

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

2 Income
a Donations
Planned giving:
Gift aid donations
Income tax recoverable
Other planned giving
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 2023
Total 2022
£
£
£
£
115,552
6,999 122,551
116,643
29,770
1,750
31,520
30,397
15,836
2,053
17,889
16,147
1,655
-
1,655
1,585
1,000
6,250
7,250
8,844
11,370
10,024
21,394
13,994
- 21,532
21,532
19,486
175,183
48,608
223,791
207,096
5,587
-
5,587
2,348
5,587
-
5,587
2,348
245
-
245
368
10,969
-
10,969
12,510
402
-
402
552
2,371
-
2,371
1,800
13,987
-
13,987
15,230
194,757
48,608
243,365
224,674

8

The Parish Church of the Good Shepherd – Annual Report for 2023

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

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
£
£
-
10,273
-
2,950
100
2,900
-
650		 Total 2023
Total 2022
£
£
10,273
10,230
2,950
3,010
3,000
2,460
650
960
100
16,773		 16,873
16,660
71,679
-
14,008
15
- 36,887
1,398
-
14,135
-
8,724
-
324
-
60,786
-
164
-
1,158
-		 71,679
70,620
14,023
14,927
36,887
30,099
1,398
1,081
14,135
11,979
8,724
19,135
324
192
60,786
73,679
164
573
1,158 602
172,376
36,902		 209,278 222,887
172,476
53,675		 226,151
239,547
2023
2022
£
£
54,973
68,316
780
1,407
5,033
3,956
60,786
73,679

During 2023 the PCC employed a parish secretary, a Pioneer Community Worker, a Youth and Children’s Minister and a church cleaner (to the end of January), 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 £12,127 during the year (2022 - £27,176). The PCC contributed £2,224 (2022 - £1,591) in pension costs for Mrs Edwards. The Pioneer Community Worker, the Youth and Children’s Minister and the parish secretary were reimbursed for expenses incurred in carrying out their duties.

9

The Parish Church of the Good Shepherd – Annual Report for 2023

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

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 two sections - the Defined Benefits Scheme and the Pension Builder Scheme which has two subsections - 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 which 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 (2023: £5,033; 2022: £3,956).

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. 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 next valuation is due as at 31 December 2022.

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 (2022 – 10) trustees were reimbursed a total of £4,323 (2022 - £5,401) during the year for expenses incurred on behalf of the church. Donations received from members of the PCC and their related parties amounted to £57,190 (2022 - £58,805) in the year.

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The Parish Church of the Good Shepherd – Annual Report for 2023

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

7 Fixed assets for use by the PCC

7 Fixed assets for use by the PCC
,
Actual / deemed costAt 1 January 2023
Additions
At 31 December 2023
DepreciationAt 1 January 2023
Charge for the year
At 31 December 2023
Net Book ValueAt 31 December 2023
At 31 December 2022		 Church
Equipment
Total
£
£
28,339
28,339
-
-
28,339
28,339
20,340
20,340
3,631
3,631
23,971
23,971
4,368
4,368
7,999
7.999

Church equipment comprises office equipment, two video projectors, a sound desk, hybrid services equipment, worship area chairs and kitchen equipment.

8 Debtors

Income tax recoverable
Prepayments and accrued income
Other debtors
Cash and bank accounts
Charities Aid Foundation current account
Nat West current account
Cambridge and Counties Bank 95 day access
Cambridge and Counties Bank 60 day access
CBF Deposit Fund
Charities Aid Foundation 90 day access
Charity Bank 1 year fixed term account
Cash in hand		 2023
2022
£
£
3,461
3,240
136
590
1,933
144
5,530
3,974
2023
2022
£
£
33,322 10,845
28,047
9,625
65,345
62,956
13,507
27,848
29,474
28,773
- 6,568
50,000
50,000
660
-

9 Cash and bank accounts

220,355

196,615

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The Parish Church of the Good Shepherd – Annual Report for 2023

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

10 Creditors

Amounts falling due within one year: 2023
2022
£
£
7,744
3.293

11 Statement of funds

Restricted funds

Larder
Banner workshop
Youth and Children’s Minister
Flower stand
Church for deaf people
Mission Fund
Spring Harvest		 Balance at
Incoming
Resources
Balance at
1 Jan 2023 resources Expended Transfers
31 Dec 2023
£ £
£
£
£
8,773
42,552
36,885
-
14,440
454
-
-
-
454
15,000
5,000
-
(5,000)
15,000
17
-
17
-
-
306
-
-
-
306
300
1,056
16,773 17,017
1,600
136
-
-
-
136
24,986
48,608
53,675
12,017
31,936

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 transfer from the Youth and Children’s Minister Funds is to the General Fund to cover expenditure on that item during the year.

Unrestricted funds

Designated funds:
Development fund
Major repairs fund
General funds:
Free reserves		 Balance at
Incoming
Resources
Balance at
1 Jan 2023 resources Expended Transfers
31 Dec 2023
£ £
£
£
£
95,000
-
- -
95,000
40,000
-
-
-
40,000
135,000
-
- -
135,000
45,309
194,757
172,476(12,017)
55,573
180,309
194,757
172,476(12,017)
190,573

12

The Parish Church of the Good Shepherd – Annual Report for 2023

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

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
2023
£
£
£
4,368 -
4,368
192,247
33,638
225,885
(6,042)
(1,702)
(7,744)
190,573
31,936
222,509

13 Mission and charitable giving

Overseas mission

Crosslinks / Arise - Debbie and Alan Burt
Operation Mobilisation (OM) - Jenny and Nihad Shihadi
Relief and development agencies
Giving Hope to Turkey
Open Doors
Tearfund
Home mission
BSL Translation
Christian Deaflink
Church Pastoral Aid Society (CPAS)
Connect Christian Counselling
Signs of God
The Triangle
Secular charities
Step-By-Step		 5,123
5,150
1,450
750
750
350
50
850
650
300
800
650
16,873

Additionally, special offerings have been taken up for Bishop of Guildford’s Fund, Children’s Society, National Deaf Children’s Society and Step by Step.

13