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2020-12-31-accounts

ST CUTHBERT’S CHURCH

Lytham Road, Fulwood, Preston

ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL 2020

Contents Introduction ...................................................................................................................................... 3 Aim and purposes of the Parochial Church Council (PCC) ............................................................. 4 Core aims for each Team ............................................................................................................. 5 Achievements and performance ...................................................................................................... 7 Chairman’s Report ....................................................................................................................... 7 Key Team Summaries ................................................................................................................ 10 Structure, governance and management ....................................................................................... 15 Policies ....................................................................................................................................... 15 Constitution of Parochial Church Council with effect from APCM 14 April 2019 and including 18 October 2020 APCM .................................................................................................................. 15 Administrative Information .......................................................................................................... 16 Safeguarding Report .................................................................................................................. 17 Review of St Cuthbert’s finances for 2020 ..................................................................................... 18 Financial Review ............................................................................................................................ 19 Statement of Parochial Church Councils’ Responsibilities ......................................................... 19 Statement of Financial Activities ................................................................................................ 20 Balance sheet ............................................................................................................................. 21 Note 1: Basis of Preparation ...................................................................................................... 22 Note 2: Accounting Policies ........................................................................................................ 22 Note 3: Analysis of income – General Fund ............................................................................... 24 Note 4: Analysis of expenditure .................................................................................................. 25 Note 5: Details of certain items of expenditure ........................................................................... 27 Note 6: Paid employees ............................................................................................................. 28 Note 7: Defined contribution pension scheme ............................................................................ 28 Note 8: Tangible Fixed Assets ................................................................................................... 29 Note 9: Debtors and Prepayments ............................................................................................. 30 Note 10: Creditors and Accruals ................................................................................................ 30 Note 11: Cash and Bank and In Hand ........................................................................................ 31 Note 12: Movements on Restricted and Designated Funds ...................................................... 32 Note 13: Connected Party Transactions .................................................................................... 34 Note 14: Events after the end of the reporting period ................................................................ 35 Independent Examiner’s Report to the members/trustees of St Cuthbert’s Church, Preston ........ 37

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Introduction

This is the Annual Report of the Parochial Church Council (PCC) of St. Cuthbert’s Church, Fulwood, Preston, a registered charity. In this report we describe our mission and the aim and purposes of the PCC, our achievements and provide the financial reports for the church. The report is designed to be read by anyone who is interested in the work of the church as well as to fulfil our reporting obligations to the Charity Commission.

Detailed reports from the individual ministries in the church and for associated organisations can be found in an Annex to this report.

The Parish Mission Statement

Fired by the love of God, we seek the transformation of Fulwood, Preston and beyond.

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Aim and purposes of the Parochial Church Council (PCC)

As defined in the PCC Measures of 1956 as amended in 1969, the PCC of St Cuthbert’s Church (the Parish Church of St Cuthbert, Fulwood, Preston) has the responsibility of co-operating with the Incumbent, Reverend Mark Bradford, in promoting within the ecclesiastical parish the whole mission of the Church, pastoral, evangelical, social and ecumenical.

The PCC is also specifically responsible for the maintenance of the Church Centre complex of St. Cuthbert’s Church, Lytham Road, Fulwood, Preston.

Objectives and Activities

The PCC is committed to enabling as many people as possible to worship at our church and to become part of our parish community at St. Cuthbert’s. The PCC maintains an overview of worship throughout the parish and makes suggestions on how our services can involve the individuals and many groups that live within our parish. Our services and worship put faith into practice through prayer and scripture, music and sacrament.

When planning our activities for the year, the trustees have complied with the duty to have due regard to the Charity Commission’s guidance on public benefit and, in particular, the supplementary guidance on charities for the advancement of religion. During this year our activities have been significantly affected by the impact of the coronavirus. This has led to the closure of the church centre for long periods during the year. Wherever possible we have substituted Covid-safe activities and online replacements to continue to progress our mission in the parish. In particular, we try to enable ordinary people to live out their faith as part of our parish community through:

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The PCC has a number of Teams that operate as action groups to implement its aims and objectives. Their full reports are contained in a separate annex to this report, together with reports from connected organizations.

Core aims for each Team

Worship and Discipleship

Local Outreach

Mission Partnership

Pastoral Care

Children, Youth and Families

Property

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Finance

Infrastructure

Hospitality

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Achievements and performance

Chairman’s Report

Covid

When the nation went into lockdown for the first time in March 2020, no-one could have imagined how long-lasting the pandemic would be. In the midst of bright and beautiful weather in March and April, there was a sense of novelty and slow-down for many of us - almost a sabbath-like feel to the sudden change of pace. We all planned for a ‘Big Bang’ return to the Centre. We even had the champagne ready! Few could have foreseen the sheer scale of disruption that covid would bring.

There is much to mourn about the last 12 months or so. The loss of human connection - face-to-face, without masks - seems a memory of the past for now. The loss of social proximity and physical embrace has been deeply painful for all of us. Many (most?) of us have not set foot in the Church Centre for over a year now. As part of this, we have not received bread and wine - that powerful reminder and glorious celebration of all that is most central to us - for a significant period of our lives. The sound of singing that used to fill the building on a Sunday has fallen silent, save for the one lone voice permitted later on in the pandemic. Many of us have lost loved ones, though not been able to properly grieve such a loss. As a church community, we have had to say ‘goodbye’, at far too great a distance, to Roy Pearce, Olive Wilkinson and Joan Tinham. We have bid farewell on a screen to the Funnells as they relocated to Devon.

Growth

At the same time, we hold it as truth that God is always able to work, in any circumstance and every situation, for the good of those who love him and are called according to his purpose (Romans 8:28). We should not be surprised, then, that there has been much to celebrate, as well as to lament, during the past year.

Years of technological progress took place in a matter of days and weeks, and the 10am service online has been a God-send in keeping us together. While we have not been able to gather in place, we have been given a way to connect in time - all online together, sharing comments, and exchanging stories. Hebrews 10:25 reminds us not to give up the habit of meeting together and, praise God, our technology has allowed us to do this.

Innovations have taken place, including daily prayer, overseen by Michael Hutchinson. Set-up initially as a stop-gap, this continues to draw consistent numbers at 8am on a Monday to Thursday (Night Prayer at 8pm will conclude in Holy Week with the drop in numbers, though it has clearly served its purpose). We have prayed within new rhythms in 24/7 prayer as well, as becomes a termly feature of our life together (lead by Liz Gethin, LJ Tiffney, and Ann Gray). Connect groups and Core groups have emerged as new shapes for discipleship. Fresh outreach initiatives have arisen to meet need in our local community: for example, the food bank - now ably overseen by Fiona Cookson; and Baby Basics Preston - initiated by Heather Ramsay. Such work is a herald of our future, I believe.

Recovery

There will be much recovery work to do as we begin the final - God-willing - return to the Centre in the wake of the successful roll-out of the vaccine. As the pressure of lockdown restrictions is eased, there will be a great deal of soul-searching. Things held in for so long will need to come out. Losses will be acknowledged and grieved. This will be a time to listen. The controlling image I have of this at the moment is what I am informed happens in the wake of an earthquake. Recovery teams take good time to walk the ground in absolute silence - ears to the ground, listening attentively. Where might there still be life buried under the rubble? If machines are brought in too soon, or busier recovery work commenced prematurely, the noise prevents the opportunity for a proper discernment of all that lies beneath.

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In the wake of the pandemic, the first call in recovery will be for us all to listen - both to ourselves and to each other. Likely, we will only be able to listen to ourselves fully if we allow others to listen to us. This will be difficult, given how long it has been since we have been separated from each other; however, it is vital work. The truth is, as much as we may long for it, there can be no returning to ‘normal’. This is not to say

that nothing will look as it once did. But it is to say that we have all been changed by the events of 2020-1. We can’t fail to have been. That trauma will have left its mark on each of us in some way. Acknowledging these wounds and giving time to tend to them will be vital.

Reconstruction

As well as time to recover, I believe that there is an exciting call upon us at this time to ‘reconstruct’ for the sake of the recovery and reconstruction of our community, including those we live and work among. The words of Isaiah 61:1-4 really speak to me at the moment, and sum up the call of the church to our postcovid, post-lockdown world:

I think we need to move step-by-step into the future. Nothing will be done especially fast, I suspect. There is a priority to re-fit the Northumbria Hall for purpose. It would be wonderful to see an attractive, welcoming cafe space as you come into the hall - with good flooring, better lighting, and softer furnishings. I believe that we are called to be a meeting place, or gathering place, for our community - not least with the closure of the Withy Trees and the Plungington, and with no coffee shop within the parish. We continue to work

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with the Cinnamon Network as part of our Community Hub vision. The goal will be to offer something, sustainably, for all in our community - from the youngest to the oldest - and across a range of different areas - such as finance/debt, loneliness, and wellbeing. In all of this, the key is our offering of relationship and friendship to all we connect with.

Such an OUT-ward looking vision is integral to our UP-ward connection with God and our IN-ward sharing of life with one another. It is interesting to see the ways in which God has taken us on in all three of these relational directions during the past year. I believe that the call is to keep taking steps forward in these new areas that have opened up.

Purpose and values

In all these things, we are seeking to offer a WIDE EMBRACE to all who would come - whoever they may be. We are looking to embody a LONG OUTREACH that will go out to those in need - as part of Jesus’ commitment to seeking and saving the lost. We have a HIGH EXPECTANCY that God will work powerfully among us as we journey closely with him, each other and our wider community. And through all of this, I believe, we will see DEEP TRANSFORMATION - in our own lives, those of others, and of our community as a whole.

However, this can only happen if we are animated by God’s Spirit, and do not seek to serve in our own strength. Above all else, we must be ‘FIRED BY THE LOVE OF GOD’. Only this love has the ability to welcome, the vision to reach out, the expect hope to expect great things, and the power to transform.

God bless us all, as we step out into this new world in 2021.

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Key Team Summaries

This brief section summarises the activities of several of the key teams in the church. A full set of team reports can be found in the Annex.

Worship & Discipleship Team

Coming into 2020, we had set ourselves the following goals as a Team:

  1. To offer continued opportunities to make prayer more foundational, both individually and corporately.

  2. To finally run the singleness, marriage and parenting courses.

  3. To develop the musical side of our worship.

Longer term, we were aiming:

  1. For the prayer room to become a fully-fledged 24-7 boiler room in the church (https://www.247prayer.com/boilerrooms).

  2. For more of a pipeline/stepping stones to develop in terms of a ‘discipleship journey’ with different courses and approaches.

  3. To be part of a deanery Growing Leaders course.

It is interesting to look back and to see how things did not go to plan, for obvious reasons, and yet how God has still led us on in his providence and grace – in some ways surpassing anything that I would have hoped for or imagined!

Prayer has certainly become more foundational to us as a church community in 2020. Lockdown quickly pushed us into a rhythm of morning and night prayer, 8am and 8pm. We had all expected this to be a temporary holding pattern; however, it has become an established part of the day for many – whether ‘live’ or on ‘catch up’. Michael Hutchinson has been key in coordinating this. We have had a number of 24/7 Prayer times, facilitated by a remote booking system and feeding into a Facebook group. This has brought strength to us as a community, and has now become a pattern at the beginning of each term, with LJ Tiffney, Liz Gethin and Ann Gray beginning to head this up. Place still feels important and the expectation is that the future will be hybrid – so LJ, Liz and Ann are making plans for our Durham Room ‘Boiler Room’. In other ways, too, the new online world has made prayer more accessible for all – no need to travel to church to pray, when it you can ‘gather’ on Zoom before the Sunday livestream, or monthly on the first Thursday of a month at 7pm.

New patterns have also emerged in lockdown for our small groups. It has long been felt that, while Life Groups work effectively for some in the church, they are quite a commitment for others. The desire has long been for groups to own a clearer sense of purpose and mission, as well be more agile in allowing people to come and go. A new framework of ‘Connect Groups’ is being planned for January 2021. These will be short, termly groups with a particular focus – for example, Christianity Explored, the Wellbeing Journey and the Evil Course. These will sit alongside established Life Groups, and the long-held hope to offer singleness, marriage and parenting courses will be able to sit within this framework as well. One more discipleship shape to offer in 2021 will be ‘Core Groups’ (also known as Fellowship Bands in the language of the Inspire Movement). Core Groups are a very intentional gathering of 3s and 4s around a vision of us all being called as ‘everyday disciples’ and ‘ordinary missionaries’. These will be more organic and bottom-up – a couple have begun in 2020 and more are hoped to begin in 2021. Together, these groups offer a flexible and adaptable ‘pipeline’ for the discipleship journeys of a broad and diverse congregation.

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The musical side of our worship has been significantly disrupted by covid. The loss of sung worship has been keenly felt by us all. We have adapted through the use of Worship Lyric Videos and Resound Worship resources initially, before we have begun to record ourselves leading and playing, with ever-increasing technological efficiency! What a gift it will be to worship together in song in one place! We hope this will make us ever-more grateful for the musical gifts that we do have in the congregation and to long for even more in this area of our life together.

Naturally, the deanery Growing Leaders course is still to get off the ground, but may become a focus for 2022/3.

In summary, it is wonderful to look back and to see the incredible and entirely unforeseen ways in which God has led us and guided us in 2020.

Now to him who is able to do immeasurably more than all we ask or imagine, according to his power that is at work within us, to him be glory in the church and in Christ Jesus throughout all generations, for ever and ever! Amen. (Ephesians 3:20)

Local Outreach Team

Coming into 2020, we had set ourselves the following goals as a Team:

  1. To explore possibilities for a new service, either at St Cuthbert’s or even at Fulwood & Cadley...?

  2. To work with Mei Gosling to plan to prayer walk the Parish systematically.

  3. To receive the community hub report and to prayerfully discern where to go with it next.

Longer term, we were aiming:

  1. To seek out an alternative to ‘Talk Jesus’ so that a good evangelism course is in our post-Alpha discipleship pipeline.

  2. To grow as a community hub – providing services and social space for the community and a conduit into the wider life of the church.

  3. To develop a clear pattern of outreach, following the events from our 2019 Events Week.

As with my comments in the Worship & Discipleship report, in spite of all the disruption that 2020 has brought, it is amazing to look back and to identify ways in which our vision for Local Outreach has been clarified and crystallised by the experience of covid and lockdown.

Naturally, plans for a new gathering have been put on hold, while even our standard gatherings have been significantly disrupted. Mark and Michael met with Bishop Jill to begin a conversation around this from a Diocesan point of view. Mark also met with the head of Fulwood & Cadley to share thoughts, which were very positively received. A new learning centre is being built at F&C and this might provide an obvious location for any future gathering. The Sunday@4 format which we experimented with for the first time in autumn 2020 might provide a way forward here.

Prayer walking continues to need a clear focus for the future. Some ad-hoc prayer walking has been undertaken in lockdown as part of the 24/7 sessions, or more generally for people as part of their lockdown exercise. Mark has been in touch with Hope Together who are putting an app together based on the ‘Open Heaven’ prayer mapping exercise in Coventry. Integrating all of this with our existing mapping of the parish through the daily prayer diary, updated recently by Jonathan Greening, would be useful.

Community Hub ideas are developing and the lockdown has certain given fresh impetus to the importance of this work. A food delivery scheme has been run from the Church Centre in partnership with Fulwood & Cadley and coordinated by Joanne Mackie and then Fiona Cookson. A Baby Basics programme has been set up by a team led by Heather Ramsay to provide the essentials for new mums and families who might not be able to afford them. Wellbeing provision has been explored by Michael Hutchinson and team and a Connect Group set up to explore ‘The Wellbeing Journey’ material. Lots of other possibilities are imagined, with early conversations having taken place with the new Family Support Worker at F&C. We are anticipating that the

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end of the furlough scheme will lead to much wider unemployment and need for support in debt and finance. There is a legacy of CAP involvement in the church which we may be able to draw upon for this.

Overall, it is possible to imagine a ‘hub and spokes’ vision for the Community Hub, with key mini-hubs around the uniformed organisations, debt/financial support, wellbeing provision, support for those in later life, asylum/refugee work, work to deal with loneliness, the return of the toddler group, Children Youth and Families activities as well as wider schools work. All of this will enable us to develop a clear pattern of future outreach. In the words of Bishop John Inge in the 2017 Taylor Review: Churches “are...not just places of worship for their communities: they are social hubs for people of all ages, spaces to offer hospitality and vital services to the vulnerable; churches increasingly are the glue in community life.”

Shaping the Centre to better fit the future needs of the Community Hub vision is an important next step. There is a growing sense that the Northumbria Hall will need modest investment to bring a more contemporary lounge/café/refectory feel. This might include coffee machine, light cakes and snacks, and provide the environment in which more users of the Centre might wish to drop-in and stay to socialise and chat. This brings opportunities for detached connection, care and prayer.

We continue to require a simple, accessible course to encourage the natural sharing of faith. In 2020, a small group explore ‘Mission Shaped Living’ by John McGinley and this may of use to us again in the future.

As we continue to be ‘fired by the love of God’ to connect with local community – in line with our values of ‘Wide Embrace, ‘Long Outreach’, ‘High Expectancy’ and ‘Deep Transformation’ – we find ourselves inspired by the vision of Isaiah 61:

The Spirit of the Sovereign Lord is on me,

because the Lord has anointed me

to proclaim good news to the poor. He has sent me to bind up the broken-hearted,

to proclaim freedom for the captives

and release from darkness for the prisoners, 2 to proclaim the year of the Lord’s favour…

…to comfort all who mourn,

3 and provide for those who grieve in Zion

– to bestow on them a crown of beauty instead of ashes, the oil of joy instead of mourning, and a garment of praise instead of a spirit of despair. They will be called oaks of righteousness, a planting of the Lord for the display of his splendour.

(Isaiah 61:4)

Mission Partnership Team

We find ourselves in very strange times! As a group we have not met since January 2020 and due to multiple lockdowns planned speakers were obviously cancelled. We did however manage to have a prerecorded interview with our mission partners from OM Belgium, Martin & Meryem. It was lovely to ‘meet’ them and gain further insight into what they do in Belgium.

We continued to support our main 6 link organisations throughout 2020 with the tithe from St. Cuthbert’s and held all linked organisations in our prayers.

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We were also made aware of a significant shortfall in funding for A & L, our CMS mission partners in the Middle East and we as a team, as well as A & L, were very grateful both for St. Cuthbert’s PCC & some individuals for extra donations given.

These strange times have further enlightened many of us as to how fortunate we are; with regards to having homes to stay in, food to eat, entertaining things to do, gardens to enjoy & technology to stay in touch with others. When we think of our link mission partners and the people they support, it really brings things into perspective about just how grateful we should all be.

Some of our link organisation reps continued to contact the service leaders with prayer points for their organisations focus month and these were included in the online services, emails, notices etc.

Here are the current organisations we support & the people from St. Cuthbert’s who act as representative.

The 6 receiving St. Cuthbert’s tithe:

The 6 receiving St. Cuthbert’s tithe:
Life Now- rep: Stephen Sloss Mercy Ministries- rep: Bev Calder
OM Belgium, reps: Kelvin & Helen Bottle CMS (partners A. & L.)- rep: Ann Thompson
Isaiah Trust- rep: Hilary Elkins Mission India- rep: Shanthi Rasaratnam

As well as…

MAP - rep: Ian Gosling CAP - rep: John Bamber

Please feel free to contact any of the above reps for more information on their organisation or to receive regular pray points from any of our mission partners.

Thank you for your time, Jennifer Fullalove (Team lead) andyandjennyf@gmail.com

Pastoral Care Team

As with other teams, there has been less activity since the start of the pandemic.

When the first lockdown began, we were quick to set up regular contact with the more vulnerable members of the fellowship. This has mainly been by telephone. A few people call the same members regularly to chat and to check all is well. This has been well received.

Meals were, until recently, provided twice weekly to one couple, by a team of about 16 people. The meals were gratefully received, and I am very thankful for the willingness of our volunteers to help in this way. It shows great commitment that we provided support in this way for nearly a year.

I know that a lot of support, such as shopping, has taken place by many members of our fellowship, which has not been organised by the pastoral care team. This is wonderful to hear about, as it means that our community is aware of needs without being told, and responds automatically.

The prayer has been well used, and is a vital part of the fellowship’s prayer life.

Although it is not possible under restrictions to offer home Communion or to visit as normal, some doorstep visits have taken place.

Prayer is offered via livestream services, and life groups continue to support their members in various ways.

We look forward with hope that 2021 will allow us to return to normality at some point.

The Church Centre Team

The first quarter of 2020 was business as usual. The following customers were hiring the the facilities on a regular basis; U3A, North West Ambulance Service (NWAS), British Red Cross and Slimming World. The following groups continued to meet on a weekly basis: Toddlers Group, Talk English, Farsi Group, Mid Week

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Lunch Club and Spire. In addition other groups and companies hired rooms on an ad-hoc basis. This changed when in late March 2020, as a response to the global pandemic the country was placed in lockdown. The Church Centre building was closed. However, NWAS continued to use the Douglas Hall in order to deliver essential training.

Of course, our income was significantly reduced. Once restrictions were lifted private prayer and worship services recommenced. Some activity returned, Slimmers world, Tumble Tots and a Line Dancing group hired the Northumbria Hall. Unfortunately new tiered restrictions and further lockdowns meant that this too was very limited. In late summer, NWAS indicated that they had found new premises and would no longer be using the Douglas Hall.

At the start of lockdown, the Church Administrator, Simon resigned his position and he left for pastures new in June 2020. Fortunately, Mrs Anne King continued the work and very kindly undertook additional hours to ensure the administration continued. This arrangement remained in place until October when other volunteers on a rota basis started to help out.

During periods when the buildings have been closed the PCC has used the Government’s Job Retention Scheme to cover wages in respect of Bernard and Julie.

As a consequence of the above, the income generated from our Centre has been considerably reduced. However, the effect has been mitigated by the delay in replacing the Church Administrator, the use of volunteers and the Government’s financial support scheme. At the time of writing it is unknown when or if our existing customer base will return.

Administrative Team: Anne King, Gwen Moorby, Janet Rogers and Christine Valentine

Volunteers

The PCC is grateful to the many members of the church family that make a contribution to the life and activities that make St. Cuthbert’s community so vibrant. From the most visible roles to those that are carried on quietly in the background, we thank you for hearing God’s call and responding.

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Structure, governance and management

The Parochial Church Council (PCC) is a corporate body established by the Church of England; it is a registered charity and operates under the Parochial Church Council Powers Measure.

The method of appointment of PCC members is set out in the Church Representation Rules. At St Cuthbert’s the membership consists of the Incumbent (Vicar), other eligible clergy, the Wardens, Deanery and Diocesan Synod members and elected members who are on the electoral roll of the church. Everyone who worships at church is encouraged to register on the electoral roll and stand for membership of 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 training on how the PCC works.

The PCC meets at least four times each year, with additional extraordinary meetings arranged when necessary. There is a standing committee comprising the Incumbent, wardens, Treasurer(s) and Secretary and co-opted members who meet from time to time deal with matters arising between PCC meetings. During the period of the coronavirus pandemic the PCC and Standing Committee has been meeting by videoconference to assure the running of the church during this period. The Annual Parish Church Meeting (APCM), at which elections are held for PCC and other positions, was delayed until 18 October 2020 at which point it was held virtually using zoom videoconferencing. The people in post from the previous APCM had kindly agreed to extend their terms until the delayed APCM was held. In the table of positions below, we have chosen to show the previous and new role holders for transparency.

The PCC is the body of trustees responsible for the accounts and activities of the St Cuthbert’s Church Centre in compliance with the Charities Acts

Given its wide responsibilities, the PCC has set up a number of Teams as described elsewhere in this report. With one exception, they are all led by a PCC member and each Team has at least one PCC member.

Policies

The PCC has reviewed and revised a number of its policies during 2020, putting in place or updating policies for: data protection, copyright compliance, social media use, reserves, conflict of interest, health & safety, food handling and safety, equality, equal opportunities, safeguarding and managing serious safeguarding and non-safeguarding issues.

Constitution of Parochial Church Council with effect from APCM 14 April 2019 and including 18 October 2020 APCM

Due to the exceptional circumstances presented by the Covid-19 pandemic, the members of the PCC and other positions elected on 14 April 2019 remained in post until the APCM was convened on 18 October 2020 and new elections could be held. The tables below indicate those who were in post from April 2019 and then those who were subsequently elected in 2020.

(Figure in brackets denotes years to serve from 14 April 2019)

Chairman The Reverend Mark Bradford Bev Calder (1) Church Wardens (14 April 2019) Corinne Cragg (0) Bev Calder (0) Church Wardens (18 October 2020)

Church Wardens Corinne Cragg (1) Bev Calder (1)

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Corinne Cragg (1) Bev Calder (1)

Treasurer

Tim Sture (co-opted)

Secretary

Mike Harwood (2)

Elected PCC Members (14 April 2019)

Bev Calder (0) Phil Calder (1) Gwen Moorby (1) Ian Gosling (0)

Mike Harwood (2) Simon Colton (1) Janet Rogers (1) Stephen Sloss (2)

Elected PCC Members (18 October 2020)

Ian Gosling (3) Clare Hornby (3)

Richard Chilman (3)

Ex Officio PCC Members

The Reverend Mike Clayton

The Reverend Michael Hutchinson (appointed 29 June 2019)

Deanery Synod Representatives (14 April 2019)

Shanthi Rasaratnam (0)

Diocesan Synod Representatives (14 April 2019)

Jonathan Greening (0)

Sidesmen and Sideswomen (Welcomers) appointed 14 April 2019

Doris Atherton David Barnes Sarah Bradford Bev Calder Esther Chilman Richard Chilman Karen Colton Elizabeth Cowan Corinne Cragg Eileen Critchley Ron Funnell Christine Gillett Ian Gosling Ann Gray Clare Hornby Maggie Horton Pariah Hosseini Anne King Lol King Gwen Moorby Janet Murray Janet Rogers Stuart Rogers Christine Valentine Brenda Wiggans

Sidesmen and Sideswomen (Welcomers) appointed 18 October 2020

Bev Calder Esther Chilman Richard Chilman Karen Colton Corinne Cragg Eileen Critchley Christine Gillett Ann Gray Clare Hornby Maggie Horton Raj Mehta Gwen Moorby Janet Murray Janet Rogers Stuart Rogers Christine Valentine Brenda Wiggans

Administrative Information

St Cuthbert’s Church Centre is situated at Lytham Road, Fulwood, Preston and is part of the Blackburn Diocese of the Church of England.

The PCC is a registered charity number 1127997

The bank holding PCC accounts is the Royal Bank of Scotland

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The total population of the parish is approximately 26,500.

The parish comprises the City of Preston Council wards of Moor Park, Tulketh, Cadley and Greyfriars

There are 169 members on the electoral roll

The usual Sunday service attendance has been calculated to be 88 screens, 63 adults and 26 children.

This would suggest that 88 screens, 63 adults and 26 children might mean that our Sunday service attendance is very approximately 195 adults and 70 children.

In 2020 there were 1 adult baptism, 1 child baptism, 0 marriages, 9 funerals in Church and 6 funerals at the crematorium.

Safeguarding Report

I last provided an annual report on the 22nd February 2020 when there were rumblings of a serious illness hitting our shores. Who could possibly have imagined the effect that this would have over a year on. The last year has been unprecedented, and no less so for Safeguarding. I am pleased to say that because our staff and volunteers at St Cuthbert’s were all up to date with their training, a switch to online and socially distanced meetings and visits was easily achieved. New groups were initiated under the guidance of Michael Hutchinson and others, and advice automatically sought for clarification. Service continued .....

The Church Centre may have been shut but we adapted to a new business as usual.

The Diocese training has moved online and will stay that way for some time yet. Although once we resume face to face training, our Church Centre is to be a centre to be used, so upcoming refreshers will be less problematic to organise. I will also bring biscuits.

I will, moving forward be able to inform those who require it, the dates and modules that they need to sign up to. For this I need the list of participants to be kept up to date. I have my own records, and will in the near future have access to those held electronically at Church. Unfortunately Lockdown 1 prevented me from being trained in the new system, however I have comprehensive secure records.

We have only had a couple of what I would call minor glitches, around what could and couldn't be achieved in visiting parishioners and offering support, but these have been easy to resolve. It did help that the Diocese provided frequent updates and I have access to the Government guidance and restrictions through my work with the Police.

I think, as we celebrate entering the first stage of our release from lockdown in England, the saying is "onwards and upwards" and hopefully we can get back to some sort of normal in the months to come. A big thank you to all those who have continued put safeguarding at the forefront of any decisions that have been made during the last 12 months. We remain in a place where St Cuthbert’s is still highly thought of for Safeguarding within our Diocese.

St Cuthbert’s PCC Annual Report 2020

Page: 17

Review of St Cuthbert’s finances for 2020

Introduction

2020 is the second year for which accounts have been prepared on the accruals basis, making comparisons with the previous year more straightforward than in 2019. However, the COVID-19 pandemic along with lockdown has been financially disruptive, with many changes in both income and expenses.

General Fund

The General Fund covers the financing of the majority of what we do. The 2020 budget, when originally set, included assumed spending on capital projects (the kitchen, music equipment, photocopier) totalling £29,000 and resulting (after an allowance for contingencies) in a deficit of £23,600 that would have reduced the balance on the general fund down to about £33,000. With the closure of the premises for a large part of the year (and continuing into 2021), there have been significant reductions in both income and expenses compared to what had been expected, to the extent that the original budgets became somewhat meaningless.

The budget for voluntary donations for 2020 was set at £128,625 against 2019’s total of £119,057, but the amount received was £117,979 (including Gift Aid but excluding grant income). Unsurprisingly, giving in the Centre fell following its closure: Donation Station, Gift Aided Small Donation Scheme (“GASDS”) and Services Donations fell significantly from 2019’s total of £10,000 to £3,186, against a budget of £9,200. However, early on after lockdown commenced, new means were provided for people to give electronically via the church website, and total planned giving increased from 2019’s figure of £80,106 to £92,169.

A shift from Gift Aided to non-Gift Aided giving meant recoverable Gift Aid fell from 2019’s £19,044 to £17,044.

Overall, total giving including Gift Aid recoverable (but excluding grant income) in 2020 was at £117,979 only slightly down from 2019’s £119,057. Many thanks to all who gave: your generosity has helped us start 2021 in a healthy place, financially, although we do have some challenges going forward.

The big loss in income arose in respect of room hire, with 2020 income totalling £20,627 against the budget of £44,800, and 2019’s £51,930. As the buildings were largely closed due to lockdown regulations, this was actually better than might be expected, with one of our major customers (North West Ambulance Service) continuing to use the facilities. Unfortunately, they found alternative premises in late 2020 so we have lost that customer, and it is difficult to know what room hire income we will obtain in the future.

Claims were made as appropriate for furlough support for the caretaker and cleaner, bringing in £3,297. Taken over all sources, general fund income was about £33,000 below both budget and 2019 actual figures.

However: expenditure was £20,000 below budget, we spent £5,500 on fixed assets (a photocopier and broadcasting equipment) which was £23,500 below the budgeted £29,000, and a contingency had been provided at £2,500. There are too many differences in actual spending compared to budget and 2019 to provide full commentary, but having the buildings closed saved energy and repair costs, along with savings in things like hospitality costs, and our administrator (Simon Byrne) who left during 2020 was not fully replaced.

The final result was that the general fund had a deficit of £4,866 in 2020, compared to a deficit of £26,179 in 2019. After taking account of actual fixed assets purchases and transfers between funds, the closing balance on general fund at 31 December 2020 was £46,098, compared to £55,404 a year earlier.

Looking forward into 2021, our parish share has increased by 7% from £73,552 to £78,793. That arises from a combination of reasons, including that the Regular Weekly Attendance (RWA) for the diocese as a whole has fallen, but ours has increased, so we become responsible for a higher share of costs, which themselves have increased due to inflation.

St Cuthbert’s PCC Annual Report 2020

Page: 18

Financial Review

Statement of Parochial Church Councils’ Responsibilities

The Parochial Church Council is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The Parochial Church Council are required to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

We have stayed this year with the Accruals basis (which requires many apportionments of expense and income items either side of the year end) and intend to continue on that basis into the future rather than go back to the Receipts and Payments basis.

In preparing these financial statements, the Parochial Church Council should follow best practice and:

The Parochial Church Council are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Church and enable them to ensure that the financial statements comply with the applicable law, regulations and Church of England regulatory requirements. 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.

COVID-19

In March 2020, St Cuthbert's took steps (in line with government advice) to help contain the outbreak of COVID- 19. This included the temporary suspension of all physical gatherings, moving to a presence on Facebook Live and YouTube for Sunday services, prayer meetings and discipleship groups. The Church Centre remained closed with the exception of urgent North West Ambulance Service training, and occasional use by other customers when permitted. The trustees are monitoring income and expenditure and, if it becomes necessary, will take measures to mitigate the impact of COVID-19 on the charity’s free reserves.

Volunteers

St Cuthbert’s benefits from many hours of unpaid volunteer assistance. Given the diverse and unstructured nature of much of this work, no attempt has been made in these accounts to value the hours provided.

St Cuthbert’s PCC Annual Report 2020

Page: 19

Statement of Financial Activities

Statement of Financial Activities
INCOME
Voluntary receipts
Planned giving
Collections at services
All other giving / voluntary receipts
Legacies
Grants
Gift aid recovered
Activities for generating funds
Investment income
Church activities
Hire of rooms and related income
HMRC furlough income
Total receipts
EXPENDITURE
Church activities
Diocesan parish contribution
Clergy and staff costs
Church Centre expenses
Douglas Hall expenses
Vicar's house
Curate's house
Office and governance costs
Music, Sound, Light & Projection
Mission giving and donations
Resources and activities
Fixed asset depreciation
Cost of generating funds
Total expenditure
Excess / (deficit) of income v expenditure for the year
Transfers between funds
Fund balances as at 1 January 2020
Fund balances at 31 December 2020
General fund
Fixed assets (designated)
Akere support
Asian Congregation
Baby Basics
Call to prayer and give
Child and youth
CAP
CMS extra donations
DEC
Drum Kit for Worship Group
LJ Tiffney welcome gift
Simon Byrne leaving gift
Talk English Activities
Total funds		 Years ended 31 December
Unrestricted Designated
Restricted
Total
Total
funds
funds
funds
2020
2019
£
£
£
£
£
92,169
9,110
101,279
96,536
3,186
1,151
4,337
11,180
5,580
3,685
9,265
11,609
0
0
0
2,040
6,517
8,557
1,835
17,044
2,036
19,080
21,715
120,019
0
22,499
142,518
142,875
375
375
380
32
32
46
3,243
3,243
7,381
20,627
20,627
51,930
3,297
3,297
0
147,593
0
22,499
170,092
202,612
73,552
73,552
66,935
24,692
27,572
52,264
55,742
14,801
14,801
60,390
3,865
3,865
5,366
3,466
3,466
3,279
2,375
2,375
1,318
3,962
3,962
4,655
1,869
1,869
2,273
14,477
14,477
17,779
9,400
5,187
14,587
15,495
3,853
3,853
2,626
0
0
336
152,459
3,853
32,759
189,071
236,193
(4,866)
(3,853)
(10,260)
(18,979)
(33,581)
(4,440)
5,020
(580)
0
0
55,404
1,188,115
23,890
1,267,409
1,300,989
£46,098 £1,189,282
£13,050
£1,248,430
£1,267,408
46,098
46,098
55,404
1,189,282
1,189,282
1,188,115
1,425
1,425
475
130
130
496
227
227
0
433
433
0
7,389
7,389
19,659
0
0
47
0
0
0
328
328
98
0
0
76
0
0
0
40
40
0
3,077
3,077
3,038
£46,098 £1,189,282
£13,050
£1,248,430
£1,267,408
120,019
0
22,499
142,518
375
375
32
32
3,243
3,243
20,627
20,627
3,297
3,297		 142,875
380
46
7,381
51,930
0
147,593
0
22,499
170,092		 202,612
73,552
73,552
24,692
27,572
52,264
14,801
14,801
3,865
3,865
3,466
3,466
2,375
2,375
3,962
3,962
1,869
1,869
14,477
14,477
9,400
5,187
14,587
3,853
3,853
0
0		 66,935
55,742
60,390
5,366
3,279
1,318
4,655
2,273
17,779
15,495
2,626
336
152,459
3,853
32,759
189,071		 236,193
(4,866)
(3,853)
(10,260)
(18,979)
(4,440)
5,020
(580)
0
55,404
1,188,115
23,890
1,267,409		 (33,581)
0
1,300,989
£46,098 £1,189,282
£13,050
£1,248,430		 £1,267,408
46,098
46,098
1,189,282
1,189,282
1,425
1,425
130
130
227
227
433
433
7,389
7,389
0
0
0
0
328
328
0
0
0
0
40
40
3,077
3,077		 55,404
1,188,115
475
496
0
0
19,659
47
0
98
76
0
0
3,038
£46,098 £1,189,282
£13,050
£1,248,430		 £1,267,408

St Cuthbert’s PCC Annual Report 2020

Page: 20

Balance sheet

Fixed assets
Land and Buildings
Fixtures, Fittings and Equipment
Current Assets
Debtors and prepayments
Total cash in hand and at bank
Creditors falling due in < 1 year
Net current assets
Total assets less current liabilities
Funds
General fund
Fixed assets
Total designated funds
Akere support
Asian Congregation
Baby Basics
Call to prayer and give
Child and youth
CAP
CMS extra donations
DEC
Drum Kit for Worship Group
LJ Tiffney welcome gift
Simon Byrne leaving gift
Talk English Activities
Total restricted funds
Total funds		 As at 31 December
2020
2019
£
£
1,174,400
1,174,400
14,882
13,715
1,189,282
1,188,115
9,243
8,557
51,680
76,642
60,923
85,198
(1,775)
(5,905)
59,148
79,293
£1,248,430
£1,267,408
46,098
55,404
1,189,282
1,188,115
1,189,282
1,188,115
1,425
475
130
496
227
0
433
0
7,389
19,659
0
47
0
0
328
98
0
76
0
0
40
0
3,077
3,038
13,050
23,890
£1,248,430
£1,267,408		 As at 31 December
2020
2019
£
£
1,174,400
1,174,400
14,882
13,715
1,189,282
1,188,115
9,243
8,557
51,680
76,642
60,923
85,198
(1,775)
(5,905)
59,148
79,293
£1,248,430
£1,267,408
46,098
55,404
1,189,282
1,188,115
1,189,282
1,188,115
1,425
475
130
496
227
0
433
0
7,389
19,659
0
47
0
0
328
98
0
76
0
0
40
0
3,077
3,038
13,050
23,890
£1,248,430
£1,267,408
1,188,115
8,557
76,642
85,198
(5,905)
79,293
£1,267,408
55,404
1,188,115
1,188,115
475
496
0
0
19,659
47
0
98
76
0
0
3,038
23,890
£1,267,408

St Cuthbert’s PCC Annual Report 2020

Page: 21

Notes to the accounts

Note 1: Basis of Preparation

The PCC constitutes a public benefit entity within the meaning of FRS 102.

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.

This is the second year that they have been prepared under FRS 102 (2016) as the applicable accounting standards and the October 2019 Second edition of the Charities Statement of Recommended Practice, Accounting and Reporting by Charities (SORP (FRS 102)).

Note 2: Accounting Policies

2.1 Funds

Unrestricted Funds

These represent the remaining income funds of the PCC that are available for spending on the general purposes of the PCC, including amounts designated by the PCC for fixed assets for its own use or for spending on a future project, and which are therefore not included in its ‘free reserves’ as disclosed in the trustees’ report.

The only 'free' reserves held by the PCC relate to the General Fund itself. The PCC must match a variable income stream with expenditure commitments that are of a fixed nature. Consequently, the PCC considers that to allow the Church to be managed efficiently, and to provide an appropriate buffer to enable the continuation of planned activities and ongoing developments, it is appropriate to aim for a year-end minimum General Fund balance of £20,000, compared to the actual balance at 31 December 2020 of £46,098.

Designated funds

Designated Funds are unrestricted funds which can only be used for the particular purpose of the designation by the PCC, and are not available to be applied for the general purposes of the PCC.

Restricted funds

These are income funds that must be spent on restricted purposes and details of the funds held and restrictions provided are shown in the notes to the accounts.

2.2 Income

Recognition of income

Resources are included in the Statement of Financial Activities (SOFA) when:

Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102. For example, income from church events is stated before the deduction of any the expenses of putting on those events.

Grants and donations

Grants and donations are only included in the SOFA when any preconditions preventing their use by the PCC have been met. For collections and planned giving, this is when the funds are received.

St Cuthbert’s PCC Annual Report 2020

Page: 22

Tax reclaims on donations

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered in a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation, unless the donor or the terms of the appeal have specified otherwise.

Legacies

Legacies are included in the SOFA when the receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient receipts in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. Thus the legacy received in early 2019 was accrued for at 31 December 2018, such that there are no legacies accounted for in 2019 or 2020.

Volunteer help

The value of any voluntary help received is not included in the accounts, but is described in the trustees’ annual report.

Rental income

Rental income from room hire is recognised at the date the hire takes place. Cancellation fees are recognised when a hirer’s liability arises.

Interest income

This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.

2.3 Expenditure and liabilities

Liability recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Governance costs

These include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to trustees on governance or constitutional matters.

Deferred income

No material item of deferred income has been included in the accounts.

Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

Basic financial instruments

The charity accounts for basic financial instruments on initial recognition as per paragraph 11.7 FRS 102 SORP. Subsequent measure is as per paragraphs 11.17 to 11.19 FRS 102 SORP.

2.4 Assets

Consecrated property

In so far as consecrated and benefice property of any kind is excluded from the statutory definition of ‘charity’ by Section 10(2) (a) and (c) of the Charities Act 2011, such assets are not capitalised in the financial statements.

St Cuthbert’s PCC Annual Report 2020

Page: 23

Movable church furnishings

These are capitalised at cost and depreciated over their useful economic life other than where insufficient cost information is available. In this case the item is not capitalised, but all items are included in the church’s inventory in any case.

Tangible fixed assets for use by the charity

These are capitalised if they can be used for more than one year, and cost at least £1,000.

They are valued at cost except for the Douglas Hall, for which full historic cost information is not available. The depreciation rates and methods are disclosed in note 8.

Debtors

Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

Note 3: Analysis of income – General Fund

Planned Giving and Gift Aid

In 2020, we had 78 (2019, 77) regular planned givers of which 58 (2019, 59) were eligible and chose to allow us to claim Gift Aid.

We continue to ensure that we realise as much as possible of the potential benefit from Gift Aid, including the Gift Aid Small Donations Scheme (GASDS). The GASDS cap is currently £8,000 in each tax year ending 5 April, and we had donations of £2,559.50 in 2020 (£8,809.81 in 2019), allowing £639.88 to be claimed in addition to the normal Gift Aid provision. The reduction here followed closure of the premises for most of the year.

The following tables provide analysis of certain items of income shown in the SOFA :

Donation station income
GASDS cash and envelopes
Services donations
Total services giving		 2020
£
648
2,258
280
3,186		 2019
£
784
8,232
984
10,000

We have sought to make it easier for church members and centre users to pay via electronic means. After lockdown commenced, we set up new means of donations via the church website. The “Donation Station”, introduced in the entrance foyer in late 2019, enabling givers to make donations using credit or payment cards, did not achieve its full potential due to the closure of the premises. Based on our experience so far, we estimate the Donation Station will bring in new income at £2,000 pa or more ongoing in a fully-open year.

St Cuthbert’s PCC Annual Report 2020

Page: 24

Analysis of certain items of income shown in the SOFA (continued) :

Bookstall
Fund raising events
Activities for generating funds
Events income
Toddler Group Income
Diocesan Fees
Musician Fees
PCC Fees
Retired Clergy Fees
Verger Fees
Church activities
Church Centre Hire
Douglas Hall Hire
Incidental Sales
Hire of rooms and related income		 2020
£
0
375
375
2020
£
140
476
1,228
215
904
0
280
3,243
2020
£
5,551
14,890
186
20,627		 2019
£
380
0
380

2019
£
1,110
1,583
1,815
390
2,123
0
360
7,381
2019
£
19,064
32,571
295
51,930

Note 4: Analysis of expenditure

The following tables provide analysis of certain expenses shown in the SOFA

Cleaning
Heat and light
Insurance
Major Repairs
Misc Running Expenses
Repairs & Maintenance
Water
Church Centre Expenses		 2020
£
1,257
4,783
1,361
0
924
5,133
1,343
14,801		 2019
£
1,335
6,472
1,129
41,824
1,813
5,175
2,642
60,390

St Cuthbert’s PCC Annual Report 2020

Page: 25

Analysis of certain expenses shown in the SOFA (continued) :

Cleaning
Heat and light
Insurance
Major Repairs
Repairs & Maintenance
Water
Douglas Hall Expenses		 2020
£
51
1,768
1,361
0
465
220
3,865		 2019
£
135
2,139
1,456
0
917
719
5,366

At renewal of the insurance policies for the Church Centre and Douglas Hall in 2021, the payment method changed to a single combined monthly payment for both. The 2020 expense has been split equally between the two buildings for presentational purposes.

Council Tax
Water Rates
Vicar's house
Council Tax
Water Rates
Curate's house
Phone & Internet
Printing, Stationery, Postage & Software
Bank & Other Commission Charges
Accounting software
Miscellaneous governance costs
Professional Fees
Independent examiner
Office and governance costs		 2020
£
2,870
596
3,466
2020
£
1,795
580
2,375
2020
£
823
1,859
296
300
48
0
636
3,962		 2019
£
2,758
521
3,279
2019
£
912
406
1,318
2019
£
829
2,696
33
300
148
31
618
4,655

Spending of £2,514 on a photocopier (bought in 2020 as this is cheaper over five years than leasing one, as done before) means that the leasing cost included for a short period at the start of 2020 and throughout 2019 is no longer incurred. The depreciation and the fixed asset are both shown in designated funds.

St Cuthbert’s PCC Annual Report 2020

Page: 26

Analysis of certain expenses shown in the SOFA (continued) :

Music, Sound, Light & Projection
Church Mission Society
Life Now
Mercy UK
Mission India
OM Belgium
The Isaiah Trust
Churches Together in Fulwood
Mission giving and donations		 2020
£
1,869
2020
£
4,547
1,967
1,967
1,967
1,967
1,967
95
14,477		 2019
£
2,273
2019
£
2,947
2,947
2,947
2,947
2,947
2,947
95
17,779

Following an appeal by CMS, which highlighted the financial difficulties being suffered due to COVID-19 by the family we are supporting, the PCC resolved to make an additional donation of £2,000, and members of the congregation gave an additional £580 via the restricted fund set up for that purpose. This explains the £2,580 donation to CMS over and above the £1,967 to each of the other mission partners.

Although 2019 general fund giving income was almost identical to that in 2020, the giving out due to mission partners has fallen because the mission partner giving in respect of Ruth Seed’s legacy was accounted for in 2019, but the underlying income was accrued in the 2018 accounts, as explained in the 2019 accounts.

Events Expenditure
Toddlers Resources
Hospitality
Other Resources
Pastoral Resources
Services Resources
Evangelism Expenses
Resources and activities		 2020
£
728
142
1,590
1,932
1,963
2,199
846
9,400		 2019
£
2,782
1,029
4,037
2,042
1,034
1,198
595
12,716

The reduction in most expenses – and the increase in Pastoral Resources – arose from lockdown and the closure of the premises.

Note 5: Details of certain items of expenditure

2020 2019
£ £
Independent examiner’s fees 636 618

St Cuthbert’s PCC Annual Report 2020

Page: 27

Note 6: Paid employees

6.1 Paid employees

Salaries and wages
Social security costs – covered by employment allowance
Pension costs (defined contribution scheme)
Other employee benefits – Nil
Child & Youth worker expenses covered by grant income
Other staff and clergy expenses
Total clergy and staff costs per SOFA		 2020
£
39,800
0
505
0
6,517
5,442
£52,264		 2019
£
47,159
0
588
0
0
7,995
£55,742

No employees received employee benefits (excluding employer pension costs) of more than £60,000 pa.

The employment costs of the Child, Youth and Families worker are allocated to the Child & Youth restricted fund: the related grant income of £6,517 shown as restricted income on the face of the SOFA offsets the expenses in 2020 relating to assistive technologies and training obtained for him. All other employment costs are allocated to the General Fund.

The above analysis does not include the employment costs of stipendiary clergy, who are paid by the Diocese. The parish share of £73,552 (2019, £66,935) is determined by the Diocese each year as the contribution that the PCC makes towards the costs of Clergy stipends, pensions, housing, the Training of Curates, and Diocese expenses.

6.2 Average head count in the year

6.2 Average head count in the year
2020 2019
Number Number
Number of employees 4 5

One employee was full-time initially but in October 2020 changed to part-time (employed full-time throughout 2019). The other employees are all part-time. One (part-time) employee left in May 2020.

Note 7: Defined contribution pension scheme

ote 7: Defined contribution pension scheme
2020 2019
£ £
Amount of contributions recognised in the SOFA as an expense 505 588

Pension contributions are paid by the charity to the Government-backed NEST pension scheme.

St Cuthbert’s PCC Annual Report 2020

Page: 28

Note 8: Tangible Fixed Assets

8.1 Land and Buildings – Douglas Hall

FRS 102 states at paragraph 2.27 that an asset must be recognised in the accounts where: (a) it is probable that any future economic benefit associated with the item will flow to or from the entity; and (b) where the item has a cost or value that can be measured reliably.

Historical cost information is not available for the Douglas Hall either for the land or the building. The 2017 accounts included a valuation of £352,178 described as its “estimated rebuild value”, based on the 2005 insurance valuation and the cost of additions to 2009. The 2018 accounts were prepared on the Receipts and Payments basis and carried no value for any fixed assets.

There is no cost information available for the land.

With the passage of time and inflationary effects in building costs, the valuation used in the 2017 and earlier accounts is no longer appropriate. The 2019 insurance renewal contains a cover value of £1,174,400.

The PCC does not consider it appropriate to use charity funds to obtain a professional valuation of the Douglas Hall, either for the land alone or for the land with building in place.

For the building, the trustees determined in early 2020 to adopt the value indicated by the 2019 insurance renewal documentation. No value is included for the land.

8.2 Depreciation

The valuation for the Douglas Hall is not depreciated, as the trustees foresee it having a useful life greater than 50 years.

The cost of Chairs and Mobile Screens purchased for the Centre is being depreciated straight line over 20 years (5% pa of cost).

Other fixtures, fittings and equipment are depreciated straight line over five years (20% pa of cost).

8.3 Cost or valuation

At the beginning of the year
Additions
Disposals
At the end of the year
8.4 Depreciation
At the beginning of the year
Charge for the year
Eliminated in respect of disposals
At the end of the year		 Freehold
Land &
Buildings
£
1,174,400
0
0
1,174,400
Freehold
Land &
Buildings
£
0
0
0
0		 Fixtures,
Fittings &
Equipment
£
49,244
5,020
0
54,264
Fixtures,
Fittings &
Equipment
£
35,529
3,853
0
39,382		 Total
£
1,223,644
5,020
0
1,228,664
Total
£
35,529
3,853
0
39,382

St Cuthbert’s PCC Annual Report 2020

Page: 29

8.5 Net Book Value

At the beginning of the year
At the end of the year
ote 9: Debtors and Prepayments
9.1 Analysis of debtors
Trade debtors
Accrued income
Prepayments
Total		 Freehold
Land &
Buildings
£
1,174,400
1,174,400		 Fixtures,
Fittings &
Equipment
£
13,715
14,882
2020
£
2,055
5,412
1,776
£9,243		 Total
£
1,188,115
1,189,282
2019
£
4,765
1,740
2,052
£8,557

Note 9: Debtors and Prepayments

9.2 Analysis of debtors recoverable in more than 1 year (included in debtors above)

Debtors recoverable in more than 1 year were £1,228 at December 2020 (Nil, 2019).

Until December 2019, the Diocese of Blackburn permitted payments of Diocesan fees to be offset against Parish Share within each year. This was a concession that is not allowed by many other Dioceses. From 2020, it requires that such fees are paid over quarterly, with credit being granted against the Parish Share that is due two years later – eg, 2020 Diocesan fees will be paid over and then will be offset against 2022 Parish Share. Thus, debtors due after more than 1 year appears for the first time at December 2020.

Note 10: Creditors and Accruals 10.1 Analysis of creditors

Trade creditors
Accruals and deferred income
Taxation and social security
Total		 2020
£
0
1,775
0
£1,775		 2019
£
738
5,167
0
£5,905

St Cuthbert’s PCC Annual Report 2020

Page: 30

Note 11: Cash and Bank and In Hand

Payment cards
Cash at bank
Cash in hand
Total		 2020
£
1,617
50,004
59
£51,680		 2019
£
2,445
73,777
420
£76,642

The church uses Equals (formerly trading as FairFX) to provide payment cards to certain employees and the clergy, to reduce their need to finance PCC expenses from their own resources pending reimbursement. The balances held by Equals are a combination of funds allocated to individual cards and a holding account for funding card top ups.

There are two bank accounts, used for different purposes and with different access rights, both held with the Royal Bank of Scotland:

Both accounts are used from time to time for certain non-confidential transactions, such as payment of the Parish Share to the Diocese. The Treasurer monitors the levels in the accounts to ensure funds are available in each as required to meet liabilities as they fall due.

St Cuthbert’s PCC Annual Report 2020

Page: 31

Note 12: Movements on Restricted and Designated Funds

The following is a summary of movements in 2020 :

Year ended 31 December 2020
Land & buildings
Designated total
Akere support
Asian Congregation
Baby Basics
Call to prayer and give
Child & Youth
Christians Against Poverty
CMS extra donations
DEC
Drum kit for worship group
LJ Tiffney welcome gift
Simon Byrne leaving gift
Talk English		 Opening
Closing
balances at
balances at
01/01/20
Income
Expenditure
Transfers
31/12/20
£
£
£
£
£
1,188,115
5,020
(3,853)
1,189,282
1,188,115
5,020
(3,853)
0
1,189,282
475
950
0
1,425
496
921
(1,287)
130
0
780
(553)
227
0
433
0
433
19,659
17,724
(29,994)
7,389
47
0
(47)
0
0
580
0
(580)
0
98
230
0
328
76
0
(76)
0
0
137
(137)
0
0
395
(355)
40
3,038
350
(311)
3,077
23,890
22,500
(32,760)
(580)
13,050

Akere support

Some of the people who went on the 2018 trip to Uganda commenced making donations in 2019, to be paid over to support Akere. Occasional lump sum payments are made: no such payment was made during 2020.

Asian Congregation

This is a new fund set up in 2019 for an Asian Congregation that meets in the Church Centre on a monthly basis, overseen by Rev Kamran Bhatti. Collections at their meetings cover the cost of food provided.

Baby Basics

Heather Ramsay identified Baby Basics and set it up as a way of supporting new mothers in Preston with limited resources. Supplies of basic products (eg, Moses baskets) are received as donations in kind, or bought new, and provided in the form of a “pack” to new mothers.

Call to prayer and give

In late 2020 the Diocese of Blackburn launched the call to prayer and give initiative to encourage support to be provided in prayer from all parishes, and finance from those parishes who are able, to assist other parishes in the Diocese where the COVID-19 pandemic has had a severe impact on their income. The funds raised will be donated to a local parish that needs such support.

St Cuthbert’s PCC Annual Report 2020

Page: 32

Child and Youth Co-ordinator

LJ Warren has worked in this role throughout 2020, although he reduced his hours in October. About 30 people gave in a mixture of one-offs and regular monthly gifts. Including refunded Gift Aid, a total of £11,206 was received (2019, £19,872). After accounting for LJW’s salary, pension contributions and other costs of Child and Youth work, the fund has a closing balance of £7,389. Since the year end, lump sum donations totalling £12,500 including the related Gift Aid have been received. With continuing monthly giving, there are sufficient funds for the work to continue beyond the end of 2021.

During 2020, LJW was assessed and awarded government-funded grants totalling £6,517 for various assistive technologies and training. Some of those have not yet been paid, pending completion of training that has been delayed by COVID-19.

Christians Against Poverty

The sums held throughout 2019 were raised during 2018, and paid out to CAP in 2020.

CMS extra donations

Following an appeal from CMS, which indicated that other supporting churches had reduced giving significantly since the COVID-19 pandemic occurred, the PCC resolved to donate an additional £2000 and communicated this to the congregation to offer an opportunity for them to participate. This raised an additional £580.

DEC

Donations were made during 2019 and 2020 with a requirement that they should be used for a Disaster Emergency Committee appeal. The total will be paid over when a suitable appeal is made.

Drum kit for worship group

During 2020 the fund brought forward was used to purchase a new snare drum.

LJ Tiffney welcome gift and Simon Byrne leaving gift

Restricted funds were set up to collect donations towards these gifts. The balance due to Simon has been paid out since the year end.

Talk English

St Cuthbert’s provides an accountancy umbrella through a restricted fund for a group that is financed by grants from local benefactors for assisting asylum seekers and refugees to learn English.

St Cuthbert’s PCC Annual Report 2020

Page: 33

The following is a summary of movements in 2019 :

Year ended 31 December 2019
Land & buildings
Mission Surplus
Designated total
Akere
Akere support
Asian Congregation
Child & Youth
Christians Against Poverty
Christmas Shoebox Appeal
DEC
DG Sound
Drum kit for worship group
Flowers
Salvation Army
Talk English		 Opening
Closing
balances at
balances at
01/01/19
Income
Expenditure
Transfers
31/12/19
£
£
£
£
£
1,180,790
0
(2,626)
9,951
1,188,115
2,024
(2,024)
0
1,182,814
0
(2,626)
7,927
1,188,115
74
0
0
(74)
0
0
883
(482)
74
475
0
1,176
(680)
0
496
24,602
19,872
(24,814)
0
19,659
47
0
0
0
47
0
300
(300)
0
0
0
98
0
0
98
1,151
0
0
(1,151)
0
76
0
0
0
76
5
0
0
(5)
0
0
389
(389)
0
0
3,866
100
(928)
0
3,038
29,821
22,818
(27,593)
(1,156)
23,890

Note 13: Connected Party Transactions

Donations by Connected parties including the related Gift Aid:
General Fund
Child & Youth Fund
Call to prayer and give
Total		 2020
£
38,497.86
1,900.00
250.00
£40,647.86		 2019
£
41,205.00
7,375.00
0.00
£48,580.00

There is no concept of materiality with Connected Party Transactions, hence the display of figures including pence in this note.

The spouses and other close family members of Trustees count as Connected Parties for the purposes of disclosure of financial interest. The donations shown above were made in the periods only when the Trustees were Trustees – ie, they exclude any donations by Trustees either before their appointment or after they ceased to be Trustees.

Personal expense payments have been made by the PCC to Trustees for the following expenses:

St Cuthbert’s PCC Annual Report 2020

Page: 34

No trustees have received any employment benefits for their services as trustees.

During 2020, a total of £Nil was paid to Sarah Bradford (wife of Rev Mark Bradford) for work as Church Administrator (2019, £149.40).

Stephen Sloss is a member of the PCC and is also a trustee of the Life Now charity. During 2020, donations totalling £1,967 (2019, £2,947) were paid to Life Now as part of the PCC’s commitment to give 10% of freewill offerings to other charities (see note 4).

Note 14: Events after the end of the reporting period

Before the effects of the COVID19 pandemic become known (considered below), it already appeared that our financial position would be affected by a number of events that did not affect finances in 2019:

Likely or known ongoing effects from the pandemic include the following:

The PCC considers that the December 2020 reserves of £46,098 on the General fund and £7,389 on the Child & Youth fund are sufficient to enable the charity to continue as a going concern – ie, continuing operations will be maintainable for a minimum of 12 months from the date of approval of these accounts.

St Cuthbert’s PCC Annual Report 2020

Page: 35

Accounts accepted by St Cuthbert's Parochial Church Council. Signed for and on behalf of St Cuthbert's PC M Harwood, cretary Date 12/4/21 M Bradford. Chairman Date Sl Cuthbert's PCC Annual Report 2020 Page. 36

Independent Examinerf5 Report to the membersltru5tees of St Cuthbervs Church, Preston I report on the accounts for the year ended 31, December 2020 which are set out on pages 20 to 36. Respective Responsibilities of the PCC and the Examiner The charity's trustees consider that an audit 15 not required for this year under section 144121 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 14515llbl of the 2011 Act,. and state whether particular matters have corne to my attention Basis of Independent Examiner'5 Statement My examination was carried out in accordance with the General Direction5 given by the Charity Commission. An examination includes a review of the accounting retords 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 management committee concerning any such matter5. 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 Examinerfs Statement In connection with my examination, no matter has come to my attention= 111 which gives 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 121 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Phillip Dennison ACA FCCA CWR Chartered Accountants 20 Mannin Way Lancaster Business Park Caton Road Lancaster LAI 35W Date st Cuthbert's PCC Annual Report 2020 Page.. 37