**THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE**
**AUDITED TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL**
|**Contents**|**Page**|
|---|---|
|Administrative Information|1|
|Report of the Trustees|2 to 7|
|Auditor’s Report|8 to 11|
|Statement of Financial Activities|12|
|Balance Sheet|13|
|Cash Flow Statement|14|
|Notes forming part of the Financial Statements|15 to 35|
**Page 1**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL ADMINISTRATIVE INFORMATION AT 31 DECEMBER 2021**
|CHARITY REGISTRATION NUMBER
1128305|CHARITY REGISTRATION NUMBER
1128305||
|---|---|---|
|TRUSTEES:|The Rev Simon Taylor|Mr Keith Harper|
||The Rev Simon Willetts|Mrs Penny Harris|
||The Rev Patrick Samuels|Dr Karen Hart|
||The Rev Andrew Spencer|Mr Dudley Hilton|
||The Rev David Jenkins|Mr Martin Lambert|
||Mr Guy Cookes|Mrs Jill Mace|
||Mr Christopher Garner|Mr Graham Sopp|
||Mrs Shelagh Godwin|Mr Mark Williams|
||Mrs Susan Hardy||
|PRINCIPAL OFFICE:|Church Office||
||Old Rectory, Old Rectory Gardens||
||Godalming, Surrey GU7 1XB||
|MANAGEMENT ACCOUNTS:|Lesley Reeves||
||Tuesley Tax & Accounts||
||6 Tuesley Corner||
||Godalming, GU7 1TB||
|PAYROLL:|AJ Bennewith and Co., Chartered Accountants||
||3 Wey Court, Mary Road||
||Guildford, Surrey GU1 4QU||
|AUDITORS:|Moore (South) LLP||
||Priory House, Pilgrims Court||
||Sydenham Road||
||Guildford, Surrey GU1 3RX||
|BANKERS:|NatWest Bank Limited||
||280 Bishopsgate||
||London EC2M 4RB||
|INVESTMENTS:|The CBF Church of England Funds||
||Senator House, 85 Queen Victoria Street||
||London EC4V 4ET||
|SOLICITORS:|Charles Russell Speechlys LLP||
||One London Square, Cross Lanes||
**Page 2**
**BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2021**
## **Introduction**
The PCC members, who are also the charity’s trustees, submit their annual report and the audited financial statements for the year ended 31 December 2021. The trustees have adopted the Church Accounting Regulations 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK & Republic of Ireland, FRS102 second edition, and the Charities Act 2011.
## **Governing Document**
The Parochial Church Council of the Ecclesiastical Parish of Busbridge (PCC) was registered with the Charity Commission on 27th February 2009 and its governing document is the Parochial Church Council (Powers) Measure (1956) and under this measure the PCC has the responsibility of “co-operation with the minister in promoting in the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical”. It is also responsible for the maintenance of Busbridge Church and other parish buildings.
## **Objectives, Activities and Public Benefit**
The mission of Busbridge Church is expressed as “Loving God”, “Making Disciples” and “Transforming Communities”. Specific objectives in support to that mission are:
- To build a worshipping and praying community
- To evangelise and spread the gospel of Jesus Christ
- To provide excellent youth and children’s work
- To support our church school
- To provide a care network for the bereaved, elderly and lonely
- To develop and empower church and lay leaders
- To provide facilities at the centre of our community
The PCC is aware of the Charity Commission’s guidance on public benefit in “The advancement of religion for the Public Benefit” and has regard to it in their administration of the church.
The PCC believes that by promoting the Christian faith it provides a benefit to the public by:
1. Providing facilities for public worship, pastoral care and spiritual development, both for existing church members and for anyone who wishes to benefit from what the church offers.
2. Promoting Christian values, and service by members of the church in and to their community, to the benefit of individuals and society as a whole.
## **Achievements and Performance**
The number of people on the electoral roll as at 31 December 2021 was 231 (2020: 223). Covid-19, with associated church closures and restrictions on gathering in person, had an impact on regular attendance in 2020 and 2021. For 2021, average weekly attendance was 90 adults and 35 children (under 16). Numbers were not reported in 2020, but in 2019 were 166 adults and 50 children. In addition in 2021, online services were viewed by around 100 devices each week.
**Page 3**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2021 (continued)**
## **Achievements and Performance (continued)**
On account of continuing lockdowns, no in-person services took place in the first months of 2021, with weekly online services livestreamed from the church building. From Easter 2021 onwards, in person services started to resume, albeit with continuing disruption from successive waves of Covid, including many services at Christmas 2021 being either online or outside as the Omicron variant spread through the population.
Similarly, Youth and Children’s work continued online at the start of the year, with increasing in person activities later in the year. ABC toddler groups resumed during the week, and Sunday children’s groups restarted. Pathfinders and Ichthus met regularly and some trips away took place.
The Older Person’s Ministry continued to provide very valuable pastoral support to people who might otherwise have been very lonely as a result of Covid restrictions. Later in the year, in person gatherings resumed with several very successful tea parties and a well-attended carol service just before the start of Omicron restrictions at Christmas.
The church continued to use volunteers to support activities as much as possible, although this ability was more constrained than usual by Covid restrictions. In particular, volunteers continued to be active in providing pastoral support, organising small group and children’s activities, leading worship and providing technical support.
In June 2021 we welcomed a new training curate, Patrick Samuels, replacing David Preece who had left to take up his first parish in Suffolk at the start of the year.
The church supported various organisations with grants during the year as detailed in Note 11. Total grants to organisations in 2021 totalled £21,352 (2020: £16,644). On account of Covid-19, the remit of the Church Family Support Fund had been expanded to provide support to those experiencing hardship as a result of the pandemic. Total CFSF grants to individuals in 2021 totalled £4,870 (2020: £7,850).
**Page 4**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2021 (continued)**
## **Structure, Governance and Management**
The PCC lay members are elected from the individuals registered on the parish electoral roll. The members holding office during the year 2021, and up to the date of this report, were as follows:
## **Ex Officio**
Incumbent The Rev Simon Taylor Associate Minister The Rev Simon Willetts Curate (in training) The Rev David Preece (until January 2021) The Rev Patrick Samuels (from June 2021) Churchwardens Dr Frances Shaw (until May 2021) Mr Keith Harper Mrs Susan Hardy (from May 2021) Treasurer Mr Martin Lambert Licensed Lay Ministers Mr Dudley Hilton LLM Representative on PCC (Other LLMs: Dr Peter Shaw, Mrs Clare Haddad, Mr Keith Harper and Mrs Philippa Baker)
## **Elected Lay Members**
Mr Guy Cookes (until March 2022) Mrs Penny Harris (from May 2021) Mr Christopher Garner (from May 2021) Mrs Jill Mace Mrs Shelagh Godwin Mr Graham Sopp Mr Michael Hawkey (until May 2021) Mr Mark Williams Dr Karen Hart
## **Co-opted Members**
Curate The Rev Andrew Spencer Curate The Rev David Jenkins (until May 2021)
All PCC members are commissioned each year and agree to fulfil their responsibilities as they are best able. An annual declaration of conflicts of interest is completed by each member.
Busbridge and Hambledon churches are a United Benefice and members of Busbridge PCC and Hambledon PCC meet as one group in a joint PCC. Six regular meetings were held in the year, plus two special meetings, one to consider plans for opening the Yew Tree Café and one to consider a proposal from the bishop to investigate possible merger with Godalming Parish. All PCC members are encouraged to take an active part in their sub-committee. The Governance group of Hambledon and Busbridge meets to set the agenda for each regular PCC meeting and to consider issues pertaining to management and finances. Day to Day management of the charity is delegated to the Rector, the Reverend Simon Taylor.
**Page 5**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2021 (continued)**
## **Recruitment and Appointment of Trustees**
Lay church members are encouraged to stand for election to the PCC. They are proposed and seconded by anyone on the electoral roll prior to election at the Annual Parochial Church Meeting. Elected lay members of the PCC hold office for three years and are eligible to stand for a second three-year term after which they are required to take a one year break before standing again.
## **Training of Trustees Policy**
New PCC members receive written information on the work of the PCC and their responsibilities as members. Training is tailored to individual needs depending on the experience of the individual involved.
## **Summary of Results, Achievements and Financial Review**
## **INCOMING RESOURCES**
Total income for the year was £487,104 (2020: £503,465).
Total unrestricted income amounted to £425,189 (2020: £399,835), the majority of which related to planned giving, which including gift aid was £270,457 (2020: £280,814).
## **RESOURCES USED**
Total resources expended for the year was £572,672 (2020: £569,577), of which £452,889 (2020: £450,754) was from unrestricted funds, with parish share, £108,111 (2020: £108,111) being the highest single cost.
Total employment costs, including social security and pension contributions totalled £151,406 (2020: £151,628). The slight decrease from 2020 was on account of two members of staff leaving and their replacements being employed for fewer hours. One member of staff was furloughed part-time for part of the year by mutual agreement under the Government’s Covid-19 job retention scheme.
## **UNRESTRICTED FUNDS**
At year end unrestricted funds were £312,542 (2020: £303,567) which includes a designated operational reserve fund of £152,794 (2020: £130,076).
## **RESTRICTED FUNDS**
At the year end restricted funds were £3,440,973 (2020: £3,485,953). The slight decrease was largely on account of depreciation of previously capitalised expenditure on the Old Rectory. The Word and Worship Fund showed a net expenditure of £14,517 during the year, with a balance of £29,498 at the year end (2020: £44,015)
Further details of all Restricted Funds can be found in note 22 on page 30.
**Page 6**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2021 (continued)**
## **FUTURE PLANS**
During 2022, the church intends to continue with plans to recover from the significant effects of the Covid19 pandemic, taking the opportunity to review the overall “product offering” of the church. As the impact of Covid-19 is expected to continue to decline, it is intended to maintain a combination of in-person worship and activities with some continuing online presence for the time being. Two significant new initiatives will evolve during 2022. Firstly, the Yew Tree Café is scheduled to open in the upgraded Church Centre in March 2022, to offer outreach into the wider community. Net revenue from the café is expected to cover operating costs, but this will be reviewed by PCC after 6 months of operation. Secondly, following a request by the bishop in September 2021, consideration will be given to a potential merger of the three parishes of Godalming, Hambledon and Busbridge. This consideration involves several working groups of representatives from the 3 parishes and the Diocese of Guildford. In view of this request, earlier plans for a potential merger of Busbridge and Hambledon parishes have been put on hold pending the outcome of the wider review.
## **RISK POLICY**
The PCC recognises its responsibilities for managing risk. There are risk assessment protocols in place for all church activities on and off site. The PCC maintains a formal Risk Register, which is reviewed on an annual basis. The principal risks and uncertainties identified relate to (a) loss of income if voluntary giving were to fall substantially and (b) dissatisfaction of key employees or volunteers. These risks are actively managed in line with the risk register, and despite the major disruption of Covid, voluntary giving and engagement of people has held up remarkably well.
## **RESERVES POLICY**
It is the policy of the charity and the trustees to maintain unrestricted funds, some of which are designated for specific purposes. The aim is to hold sufficient unrestricted funds to meet the unrestricted expenses of the PCC for at least six months in case of a substantial fall in income - this is felt to be approximately £200,000 on an ongoing basis. The status of unrestricted reserves and decisions regarding those designated for specific purposes are reviewed annually by PCC, normally as part of the budget setting process for the following year.
## **INVESTMENT POLICY**
The PCC has a policy of holding shares in the CBF Church of England Investment Fund to obtain a higher long-term return than available from a standard deposit account, provided that at least £150,000 is retained in immediate access accounts paying little or no interest. In addition, the PCC holds the Investment Properties as detailed in Note 15.
**Page 7**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2021 (continued)**
## **TRUSTEES RESPONSIBILITIES**
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS102) second edition;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the Parochial Church Council on 2022
Martin Lambert, Treasurer
Simon Taylor, Rector
**Page 8**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE**
## **Opinion**
We have audited the financial statements of The Parochial Church Council of the Ecclesiastical Parish of Busbridge (the ‘charity’) for the year ended 31 December 2021 which comprise Statement of Financial Activities, Balance Sheet, Cash flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
## **In our opinion the financial statements:**
- give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the
**Page 9**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE (continued)**
other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we required for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
**Page 10**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE (continued)**
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
- The engagement partner selected staff for the audit led by persons who had sufficient experience, along with the required competence and skills in the not for profit sector to be able to identify or recognise non-compliance with laws and regulations.
- We assessed the risk of irregularities as part of our audit planning, and ongoing review, including due to fraud, management override was identified as a significant fraud risk from our assessment. This is due to the ability to bypass controls and disclosure requirements.
- Some income received is restricted in its use and a significant risk was identified regarding the correct classification of income between restricted and unrestricted funds and that the expenditure against this income was in line with any specified restrictions.
- We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered the most significant to be Charities Act 2011, the Charity SORP, UK financial reporting standards as issued by the Financial Reporting Council, Church Accounting Regulations and Gift Aid compliance. We considered how the charity complies with these requirements by discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations. Consideration was also made of internal controls in place to mitigate the significant risks.
- We assessed the control environment, documenting the systems, controls and processes adopted. The audit approach incorporated a combination of controls testing, where appropriate, analytical review and substantive procedures, involving tests of transactions and balances. Any irregularities were discussed with management and additional corroborative evidence was obtained as required.
- We obtained an understanding and assessed the impact of Covid-19 on the operations of the Charity and adapted our audit approach accordingly. We enquired and obtained evidence to support the going concern assumption, dovetailed with work undertaken on management override.
To address the risk of fraud through management override we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify any unusual transactions;
- reviewed sensitive nominal ledger codes,
- reviewed the disclosures within the financial statements to ensure that they meet the requirements of the accounting standards and relevant legislation; and
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
**Page 11**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE (continued)**
In response to the classification of income and expenditure between restricted and unrestricted we:
- completed analytical work, compared to prior year and budget;
- agreed a sample of income recorded in the nominal ledger to source documentation to ensure any restrictions were correctly identified;
- agreed a sample of expenditure per the nominal ledger to supporting documentation, confirming any restriction applied met the purpose for which the income was given; and
- reviewed the clients analysis of restricted funds for any obvious misallocations of income or expenditure;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.
## **For and on behalf of Moore (South) LLP, Statutory Auditor**
Moore (South) LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
**Priory House Pilgrims Court Sydenham Road Guildford Surrey GU1 3RX**
**Page 12**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL STATEMENT OF FINANCIAL ACTIVITIES AT 31 DECEMBER 2021**
|**Notes**
**Income**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other
7
**Expenditure**
Raising funds
8
Charitable activities
9
Other costs
10
**Net income before investment gains**
Gains on investments
15 / 17
**Net income**
Transfers between funds
22 / 23
**Net movement in funds**
**Reconciliation of Funds:**
Total funds brought forward
Total funds carried forward|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds**
**Funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
294,803 61,915
356,718
392,364
9,786
- 9,786
10,726
11,421
- 11,421 6,483
50,700
- 50,700
28,963
58,479
- 58,479
64,929|
|---|---|
||425,189 61,915
487,104
503,465|
||25,006
- 25,006
43,468
407,231
119,783
527,014
502,891
20,652
- 20,652
23,218|
||452,889
119,783
572,672
569,577|
||(27,700) (57,868) (85,568) (66,112)
36,775 12,788 49,563
480,003|
||9,075 (45,080) (36,005)
413,891
(100)
100
-
-|
||8,975 (44,980) (36,005)
413,891
303,567 3,485,953 3,789,520 3,375,629|
||312,542 3,440,973 3,753,515 3,789,520|
Notes 1 - 28 on pages 15 - 35 form an integral part of these accounts
**Page 13**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL BALANCE SHEET AT 31 DECEMBER 2021**
|**Notes**
**Fixed Assets**
Tangible assets
14
Investments
15
**Current Assets**
Debtors
16
Investments
17
Cash at bank and in hand
**Current Liabilities**
Creditors: amounts due within one year
18
**Net Current Assets**
**Total Assets less Current Liabilities**
Creditors: amounts due after one year
19
**Total Net Assets**
**The Funds of the Charity**
Restricted
22
Unrestricted
23
**Total Funds**|**2021**
**2020**
**£**
**£**
2,386,346
2,421,775
1,210,000
1,210,000|
|---|---|
||3,596,346
3,631,775
30,680
33,105
303,020
303,457
385,368
396,727|
||719,068
733,289
(34,399)
(40,544)|
||684,669
692,745|
||4,281,015
4,324,520
(527,500)
(535,000)|
||3,753,515
3,789,520|
||3,440,973
3,485,953
312,542
303,567|
||3,753,515
3,789,520|
Approved by the Parochial Church Council on:
2022
and signed on its behalf by:
Reverend S Taylor Incumbent
Mr M Lambert Treasurer
**Page 14**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL CASH FLOW STATEMENT AT 31 DECEMBER 2021**
|**Notes**
**Cash flows from operating activities**
**Net cash from operating activities**
27
**Cash flows from investing activities**
Interest & rents from investments
Sale / (purchase) of investments
Purchase of fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
Repayments of borrowing
**Net cash used in financing activities**
**Change in cash and cash equivalents**
**Cash and cash equivalents at 1 Jan 2021**
**Cash and cash equivalents at 31 Dec 2021**|42,202
50,000
(3,398)|**2021**
**£**
(100,163)
88,804
-|23,854
(25,000)
(4,514)|**2020**
**£**
(16,207)
(5,660)
(5,000)|
|---|---|---|---|---|
||-||
(5,000)||
||||
||
|||(11,359)
396,727||(26,867)
423,594|
|||385,368||396,727|
**Page 15**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES**
## **1.1 Basis of Preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) second edition 2020, and the Charities Act 2011.
The financial statements are prepared on a going concern basis under the historical cost convention, with the exception of investment properties and current asset investments which are included at market value.
The financial statements are prepared in sterling which is the functional currency, and have been rounded to the nearest pound.
The charity is a public benefit entity as defined by FRS102 and is unincorporated.
## **1.2 Going Concern**
The PCC has assessed whether the use of the going concern basis is appropriate and has considered possible events or circumstances including those as a result of the Covid pandemic that might cast significant doubt on the ability of the charity to continue as a going concern. Particularly on account of voluntary giving having continued largely unchanged despite the pandemic, the going concern basis is still considered appropriate.
## **1.3**
## **Income**
- Planned giving, sundry and other donations, and collections are recognised when received by the PCC.
- Income tax recoverable on donations eligible for Gift Aid is recognised when the donation is received and when eligibility (a valid Gift Aid declaration) is established.
- Legacies are accounted for at the earlier of:
- the date on which the charity is aware that probate has been granted;
- the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made; or
- when a distribution is made from the estate.
Receipt of a legacy, in whole or part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
- Grant Income is recognised when the PCC is notified of its legal entitlement and the amount due.
- Other trading activities include parochial fees from weddings and funerals, and use of the centre. Along with income from fundraising, these are recognised in the period in which the event takes place.
- Investment income, including rental income, is accounted for in the period in which the charity is entitled to the receipt.
- Other income includes fees from Hambledon PCC and is accounted for in the period in which the charity is entitled to receipt.
**Page 16**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **1.**
## **ACCOUNTING POLICIES (continued)**
## **1.4 Resources Expended**
All expenditure is accounted for on the accruals basis inclusive of VAT.
- Raising funds includes those costs related to the management and repair of the investment properties and direct costs associated with fundraising activities.
- Charitable expenditure includes the costs related to the production and sale of The Bridge and all other expenses including grants relating to relevant projects undertaken. The charity allocates specific costs to the various activities that they undertake and determine those that can be treated as restricted in the accounts.
- Grants are charged in the year that they are approved for payment. No grants are deferred.
- Other costs include all expenditure not related to raising funds or the charitable activities undertaken.
## **1.5 Corporation Tax**
The charity is exempt from corporation tax according to schedule 3 of the Charities Act 2011.
## **1.6**
## **Support Costs**
Support costs are those functions that assist the work of the charity but do not directly relate to raising funds or charitable activities. These costs are allocated between the expenditure categories of the charity on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly whilst others are apportioned on an appropriate basis.
## **1.7**
## **Donated Services and Goods**
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
In accordance with the Charities SORP, the services of volunteers are not reflected in the Statement of Financial Activities as their donated time is not quantifiable.
## **1.8 Fixed Assets**
## _Consecrated land and buildings and movable church furnishings_
Consecrated and beneficed property is not reported within these financial statements in accordance with the Charities Act 2011. No cost or value is placed on movable church furnishings held by the stewards on trust for the PCC and which require a faculty for disposal since the PCC considers them to be inalienable property. All expenditure on consecrated buildings and movable church furnishings, whether maintenance or improvement, is written off as expenditure in the Statement of Financial Activities.
## _Freehold properties_
Freehold properties held for use by the PCC with a value linked loan are stated at valuation by the trustees on a reasonable estimate of the current value. The trustees review the value on an annual basis to consider the residual value, which they deem to be at least equal to cost. Therefore, no depreciation is charged.
Other freehold properties held for use by the PCC are stated at cost. The non-land cost is depreciated over 10 years on a straight line basis.
**Page 17**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES (continued)**
## **1.8 Fixed Assets (cont.)**
_Office equipment and fixtures and fittings_
Individual items with a purchase price of £1,000 or less are written off on purchase.
Office equipment used by the PCC, and fixtures and fittings in its properties, are depreciated so as to spread the cost of each asset, less its estimated residual value, over its expected useful life of 4 years.
## **1.9 Investment Properties**
All Investment properties are included in the accounts on an open market basis as estimated by the trustees.
Unrealised gains and losses are taken to the Statement of Financial Activities.
## **1.10 Debtors**
Other debtors are recorded at settlement amount. Prepayments are valued at the amounts prepaid at the balance sheet date.
## **1.11 Current Asset Investments**
Investments are recognised initially at cost, which is the transaction price less transaction costs. Subsequently, the investments are included at closing mid-market value at the balance sheet date. Any gain or loss is taken to the Statement of Financial Activities.
## **1.12 Cash at Bank and in Hand**
Cash at bank and in hand includes cash and short term highly liquid investments with short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.13 Creditors**
Trade and other creditors are recognised when the charity has a present obligation resulting from past events and can be measured or estimated reliably. Creditors are recognised at their settlement amounts.
## **1.14 Public Benefit Concessionary Loans**
Interest free loans were generously provided by some church members to facilitate the Old Rectory project. These loans have not been discounted per FRS 102 section 13 and 14.
## **1.15 Financial Instruments**
The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **1.16 Pensions**
The PCC operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities in the year they are payable. The assets of the scheme are held separately from those of the PCC in an independently administered fund. The pension charge represents the amounts payable to the scheme in respect of that year.
**Page 18**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES (continued)**
## **1.17 Funds**
## _Unrestricted Funds_
Unrestricted funds represent the funds of the PCC that are not subject to any restrictions regarding their use and that are available for application on the general purposes of the PCC. They include Designated Funds earmarked by the PCC for a particular purpose. The PCC has three Designated Funds (2020 – three); the Operational Reserve Fund, The Bridge (magazine) Fund and the Nexus Fund. Note 23 describes the funds and their purposes.
## _Restricted Funds_
Restricted funds are funds of the PCC that are subject to restrictions on their use imposed by the donor, that is, they are funds given for a specific purpose and the PCC cannot use them to meet its general purposes. Note 22 describes the funds and their purposes. The balance on the restricted funds for capital items at the year end is at least equal to the net book value in the accounts.
## **2. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Key sources of estimation uncertainty**
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
## _Determination of values of investment property_
The trustees review the valuation of each of the investment properties at the end of each year based on their knowledge of the market and house sales in and around the year from internet research. If the trustees’ valuation is inaccurate then the valuation of investment property in the financial statements will be misstated. The valuation basis of each property is described in Note 15.
**Page 19**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **3. Donations and Legacies**
|**Incoming resources from donors**
Planned giving Gift Aid
Tax recoverable - Planned
Planned giving non Gift Aid
Sundry donations
Tax recoverable - Sundry
Collections
Special Collections
Tax recoverable - Collections
Directed gifts
Word and Worship
Old Rectory
Reordering
Church Family Support Fund
Centre / Yew Tree Café
Livestream
Legacy income|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
183,527
- 183,527 192,347
45,929
- 45,929 48,111
41,001
- 41,001 40,357
16,356
- 16,356 4,789
3,139
- 3,139 1,068
453
- 453 563
- 4,880 4,880 2,603
19 878 897 625
4,380
- 4,380 1,250
- 11,390 11,390 9,165
- 21,305 21,305 19,263
- 8,708 8,708 9,711
- 7,039 7,039 19,458
- 7,715 7,715 40,998
-
- - 2,058|
|---|---|
||294,803 61,915 356,718 392,364
-
- -
-|
||294,803 61,915 356,718 392,364|
Included in 2020 was £103,630 of restricted income
## **4. Charitable Activities**
|**ritable Activities**||
|---|---|
|Older Persons Work
Youth & Children activities
The Bridge magazine
Nexus
Other parish activities|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
272
- 272 148
1,554
- 1,554 801
6,602
- 6,602 7,773
1,238
- 1,238 2,004
120
- 120
-|
||9,786
- 9,786 10,726|
All income from charitable activities was unrestricted in 2020
**Page 20**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **5. Other Trading Activities**
|**ding Activities**||
|---|---|
|PCC fees and services
Centre use|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
11,421
- 11,421
6,238
-
- -
245|
||11,421
-
11,421
6,483|
All income from other trading activities was unrestricted in 2020
## **6. Income from Investments**
|Bank interest:
Short term deposit accounts
Rents:
34 High Ridge
Church Cottage
School House|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
766
-
766
1,189
13,500
-
13,500
13,500
16,000
-
16,000
14,274
20,434
-
20,434
-|
|---|---|
||50,700
-
50,700
28,963|
All investment income in 2020 was unrestricted.
In 2020 the school caretaker vacated School House which was refurbished for letting from January 2021.
## **7. Other Ordinary Incoming Resources**
|Other income
Hambledon|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
1,199
-
1,199
1,950
57,280
-
57,280
62,978|
|---|---|
||58,479
-
58,479
64,928|
All Other Ordinary Incoming Resources in 2020 was unrestricted
**Page 21**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
|**8. Raising Funds**
Investment property costs|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
25,006
- 25,006 43,468|
|---|---|
||25,006
- 25,006 43,468|
All costs for raising funds in 2020 were unrestricted. 2020 investment property costs include the following in respect of School House:
An ex gratia payment of £15,000 to Busbridge Junior School following which School House was returned to PCC and available for commercial letting.
## **9. Charitable Activities**
|**9. Charitable Activities**||
|---|---|
|**Grants**
Outward giving
Church Family Support Fund grants
Special collections
Directed gifts|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
15,873 - 15,873 11,430
- 4,870 4,870 7,850
- 5,479 5,479 3,964|
||15,873 10,349 26,222 23,244
4,144 - 4,144 1,250|
||20,017 10,349 30,366 24,494|
Included in 2020 are grants from restricted funds of £11,814. Details of grants made to institutions in the year are set out in Note 11.
**Page 22**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
|**Ministry**
Parish share
Churches Together
Clergy expenses
Rectory costs
Clergy fees
Hambledon clergy
Service costs
Word & Worship
Youth & children work
Older persons & befriending work
Pastoral
Evangelism
Other|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
108,111
-
108,111 108,111
960
-
960 960
1,700
-
1,700 4,063
3,359
-
3,359 1,060
5,147
-
5,147 2,994
39,507
-
39,507 39,060
23,566
-
23,566 6,389
-
28,750
28,750 36,216
65,760
-
65,760 68,696
16,907
-
16,907 17,426
510
-
510 1,760
180
-
180 1,458
1,484
-
1,484 2,548|
|---|---|
||267,191
28,750
295,941 290,741|
Included in 2020 are payments from restricted funds of £36,216
|**Training**
Training
**Parish Activities**
Youth & children activities
The Bridge magazine
Nexus||
|---|---|
||334
- 334 881|
||2,183
-
2,183 656
7,222
-
7,222 8,415
304
-
304 372|
||9,709
- 9,709 9,443|
All payments for training and parish activities in 2020 were from unrestricted funds
**Page 23**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds £**|**Funds £**|**2021 £**|**2020 £**|
|**Property Costs**|||||
|Re-ordering|-|2,797|2,797|16,547|
|Church running costs|9,195|-|9,195|8,908|
|Church maintenance|4,704|-|4,704|3,912|
|Upkeep of churchyard|3,492|-|3,492|2,987|
|Centre / Yew Tree Café|-|39,554|39,554|1,158|
|Centre running costs|897|-|897|1,124|
|Old Rectory project|-|-|-|8,064|
|Old Rectory running costs|8,076|-|8,076|-|
|Depreciation Old Rectory|-|38,333|38,333|38,206|
|Loan interest|6,924|-|6,924|6,842|
|Clergy property rental|1,458|-|1,458|6,850|
|Other property running costs|4,772|-|4,772|4,471|
|Livestream|-|-|-|2,058|
||39,518|80,684|120,202|101,127|
|Included in 2020 are payments from restricted funds of £70,793|||||
|**Support Costs**|||||
|General administrative costs|22,294|-|22,294|28,929|
|Administration salaries|47,674|-|47,674|47,030|
|Depreciation / write backs|494|-|494|247|
||70,462|-|70,462|76,206|
|All support costs relate to charitable activities (2020 - all relate to||charitable activities)|||
|**Total Charitable Activities Expenditure**|407,231|119,783|527,014|502,891|
**Page 24**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
|**10. Other Costs**
Audit fees
Audit fees - prior year underaccrual
Accountancy & payroll
Bank charges|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2021 £**
**2020 £**
10,000
- 10,000 10,000
500
- 500 1,233
9,000
- 9,000 10,788
1,152
- 1,152 1,197|
|---|---|
||20,652
- 20,652 23,218|
All 'other costs' for 2020 were from unrestricted funds. Other costs relate to the governance costs of the charity.
## **11. Grants in Year**
|**Grants to organisations in Year**
Busbridge Junior School
Tearfund
Trinity Trust
A Rocha UK
Phyllis Tuckwell
Elam Ministries
Five Talents UK
Guildford Besom
Nazareth Way
Open Door
Salvador Children’s Trust
Warehouse Christian Trust
CPAS
Small grants
CFSF grants to Individuals|**Total**
**2021**
**£**
4,500
2,880
2,631
1,992
1,143
1,000
1,000
1,000
1,000
1,000
1,000
1,000
960
246|
|---|---|
||21,352
4,870|
||26,222|
Included in the grant to Trinity Trust is £631 from the 2020 Christmas Appeal. The grant to Phyllis Tuckwell was raised by Nexus.
**Page 25**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **12. Staff Costs**
|Wages and Salaries
Employer National Insurance costs
Employer pension costs|**2021**
**2020**
**£**
**£**
141,763
142,005
5,756
5,718
3,887
3,905|
|---|---|
||151,406
151,628|
The costs above include payments for the youth minister, children's workers, older persons and befriending leader, word and worship minister and administrative staff.
The average number of full and part-time staff during the year was 9 (2020 - 9).
No employees received emoluments in excess of £60,000 (2020 - None).
## **13. PCC Members' Remuneration**
The PCC members did not receive any remuneration in the year (2020 - None).
Clergy expenses of £4,341 (2020 - £6,686 ) were reimbursed in the year.
**Page 26**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **14. Tangible Fixed Assets**
|**Tangible Fixed Assets**||
|---|---|
|**Cost or valuation**
At 1 January 2021
Additions
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge in year
At 31 December 2021
**Net Book Values**
At 31 December 2020
At 31 December 2021|**Freehold Properties**
**Office/Other**
**Fixtures &**
**Properties**
**equipment**
**Fittings**
**Total**
**£**
**£**
**£**
**£**
2,514,590 71,395 32,280 2,618,265
- - 3,398 3,398|
||2,514,590 71,395 35,678 2,621,663|
||94,544 69,666 32,280 196,490
38,333 494
38,827|
||132,877 70,160 32,280 235,317|
||2,420,046 1,729 - 2,421,776|
||2,381,713 1,235 3,398 2,386,346|
## _Freehold Properties_
The property at 14 Phillips Close was purchased in 1991 for occupation by assistant clergy for £102,000 plus incidental costs with assistance of a value linked loan of £102,000 from the Church Commissioners. The value linked loan is repayable either when the house is sold or ceases to be occupied by a licensed person. The terms of the value linked loan are such that the amount due to the Church Commissioners represents a fixed percentage of 100% of the value of the property. Any adjustment to this liability, as a result of a change in the carrying value of the property, is offset against the gain or loss on revaluation in the Statement of Financial Activities. Interest is charged by the Church Commissioners at 3% per annum on the amount originally borrowed, the rate rising annually in line with increases in the retail price index and in 2021 was 6.79%. For 2021 the total interest paid on this value linked loan was £6,924. The value of the house is shown as £440,000 which is the estimated sale value as at 31 December 2021 and 2020 and is considered to be a fair estimate of its current “value in use”.
The freehold properties are held within the Restricted Property Fund.
**Page 27**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **15. Investment Properties**
**2021 2020 Cost or valuation £ £** At 1 January 2021 1,210,000 760,000 Transfers in - - Revaluation in year - 450,000 At 31 December 2021 1,210,000 1,210,000
The property at 34 High Ridge was valued at £360,000 in December 2021 by the Trustees based on current market conditions. The historic cost of this property is £83,950.
School House was revalued at £500,000 in December 2021 by the Trustees based on current market conditions. This followed the return of School House from Busbridge Junior School to PCC in 2020. The property was refurbished in preparation for commercial letting from January 2021. The historic cost of this property is £400.
Church Cottage was valued at £350,000 in December 2021 by the Trustees based on current market conditions. The historic cost of this property is £75,492.
The investment properties are held within the Restricted Property Fund.
**Page 28**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **16. Debtors**
|**Amounts receivable within one year**
Gift Aid recoverable
Prepayments & accrued income
Other debtors
**17. Current Asset Investments**
Market value at 1 January 2021
Additions / (Disposals)
Gain in year
At 31 December 2021|**2021**
**2020**
**£**
**£**
14,812 14,421
1,178 1,125
14,691 17,560|
|---|---|
||30,680 33,105|
||**2021**
**2020**
**£**
**£**
303,457 248,453
(50,000)
25,000
49,563 30,004|
||303,020 303,457|
The cost of investments is £191,028 (2020 - £226,000)
## **18. Creditors Falling Due Within One Year**
|Trade creditors
Accruals
Taxation and Social Security
Other creditors
Old Rectory Project loan
At 31 December 2021|**2021**
**2020**
**£**
**£**
- 9,797
21,655 25,398
1,795 2,431
3,449 2,917
7,500 -|
|---|---|
||34,399 40,544|
The Old Rectory Project loan is held within the Old Rectory Restricted fund
**Page 29**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **19. Creditors Falling Due After More than One Year**
|**r More than One Year**||
|---|---|
|Church Commissioners Equity Loan
Old Rectory Project loan
At 31 December 2021|**2021**
**2020**
**£**
**£**
440,000
440,000
87,500
95,000|
||527,500
535,000|
The Church Commissioners loan is not due until 14 Phillips Close is sold and matches the asset value. Interest is payable at 3% per annum on the amount originally borrowed, this rate rising annually in line with increases in the retail price index and is currently 6.79%.
## **20. Old Rectory Project Loan**
|Due within one year
Due between two and five years
Due after five years
At 31 December 2021|**2021**
**2020**
**£**
**£**
7,500
-
87,500
95,000
-
-|
|---|---|
||95,000
95,000|
The loans have been provided on an interest free basis. £80,000 of the long-term loan is due for repayment in December2024. The Old Rectory Project loan is held within the Old Rectory Restricted fund.
## **21. Retirement Benefit Schemes**
## **Defined Contribution Schemes**
The charge to the SOFA during the year in respect of defined contribution schemes was £9,070 (2020 - £9,112).
At the year end, contributions of £672 were outstanding (2020 - £773).
**Page 30**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
|**22. Restricted Funds**
Property Fund
Church Family Support
Fund
Prime Time Fund
Word and Worship
Youth and Children
Old Rectory Project
Re-ordering Project
Staniford Children Fund
Special Collections Fund
Centre / Yew Tree Café
Total Restricted Funds|**1 January**
**2021**
**Incoming**
**resources**
**Outgoing**
**resources**
**Transfers**
**In / (Out)**
**Unrealised**
**gains**
**31 December**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
3,190,046
-
(38,333)
-
- 3,151,713
62,819
7,039
(4,870)
100 7,563 72,651
2,105
-
-
-
- 2,105
44,015
11,390
(28,750)
- 2,843 29,498
25,249
-
-
-
- 25,249
66,656
21,305
-
-
- 87,961
41,583
8,708
(2,797)
-
- 47,494
13,640
-
-
- 2,382 16,022
-
5,758
(5,479)
-
-
279
39,840
7,715
(39,554)
-
- 8,001|
|---|---|
||3,485,953
61,915
(119,783)
100
12,788 3,440,973|
## **Restricted funds for the year ended 31 December 2020**
|Property Fund
Church Family Support
Fund
Prime Time Fund
Word and Worship
Youth and Children
Other restricted income
Old Rectory Project
Re-ordering Project
Staniford Children Fund
Special Collections Fund
Centre / Yew Tree Café
Livestream Project
Total Restricted Funds|**1 January**
**2020**
**Incoming**
**resources**
**Outgoing**
**resources**
**Transfers**
**In / (Out)**
**Unrealised**
**gains**
**31 December**
**2020**
**£**
**£**
**£**
**£**
**£**
**£**
2,775,715
-
(38,206)
2,538
450,000 3,190,046
47,114
19,458
(7,850)
- 4,097 62,819
2,105
-
-
-
- 2,105
67,302
9,165
(36,216)
2,143 1,621 44,015
27,473
-
314 (2,538)
- 25,249
4,761
-
(4,761)
-
-
-
55,771
19,263
(8,378)
-
- 66,656
48,419
9,711
(16,547)
-
- 41,583
10,486
-
-
1,796 1,358 13,640
985
2,979
(3,964)
-
- 0
-
40,998
(1,158)
-
- 39,840
-
2,058
(2,058)
-
-
-|
|---|---|
||3,040,131
103,629
(118,823)
3,939
457,076 3,485,953|
Funds held for the Staniford children were allocated to the investment account and unrealised gains attributed to it
**Page 31**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **22. RESTRICTED FUNDS (continued)**
1. The Property Fund - the PCC's properties are held by this fund. 34 High Ridge, Church Cottage and School House are currently let. The income from the properties, when let, is not restricted. The Old Rectory was purchased in 2018 and transferred into the Property Fund.
2. The Church Family Support Fund holds funds received to support those in need, as agreed by the Stewards.
3. The Special Collections Fund holds funds raised for specific purposes, and are paid out as grants to the nominated organisations (see Note 11)
4. The Prime Time Fund holds funds received for the activities of Prime Time, the older persons ministry.
5. The Staniford Children Fund holds funds received for the children of the late Lisa Staniford to provide financial support and assistance for their education and wellbeing.
6. The Word and Worship Ministry Fund holds donations specifically provided to fund the cost of a worship leader, along with contributions towards the word and worship ministry costs.
7. The Old Rectory Fund relates to monies raised for the purchase of the former church rectory, its conversion for use as an office / community centre, and related projects. The related projects are principally conversion of Church Cottage (the former office) to residential use as an Investment Property and refurbishment of the Church Centre. Purchase of the Old Rectory was completed in 2018 and the asset transferred to Tangible Fixed Assets.
8. The Re-Ordering Project holds funds given for the removal of pews from, installation of a wooden floor, and related upgrading work in the main church. Phase 1 of this project was completed in 2019, and further work was done in 2020, although somewhat delayed on account of Covid-19. The balance of the work is expected to be completed during 2022.
9. The Youth and Children Work Fund holds monies given specifically for projects to support work with young people.
10. The Centre Refurbishment Fund holds funds given specifically for the refurbishment of the Centre as a Café serving the congregation and local community. The Yew Tree Café is due to open in March 2022.
11. The Livestream Project Fund was used in 2020 to enhance service streaming capabilities.
**Page 32**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
|**23. Unrestricted Funds**
**Designated Funds**
Operational Reserve
The Bridge magazine
Nexus
General Unrestricted
Fund
Total Unrestricted Funds|**1 January**
**2021**
**Incoming**
**resources**
**Outgoing**
**resources**
**Transfers**
**In / (Out)**
**Investment**
**Gains**
**31 December**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
130,076
-
-
-
22,718 152,794
1,783
6,602
(7,222)
-
- 1,164
1,708
1,238
(1,677)
(100)
- 1,168|
|---|---|
||133,567
7,840
(8,899)
(100)
22,718 155,126
170,000
417,350
(443,991)
-
14,057 157,416|
||303,567
425,189
(452,889)
(100)
36,775 312,542|
## **Unrestricted funds for the year ended 31 December 2020**
|**Designated Funds**
Operational Reserve
Quinquennial Sinking
Fund
The Bridge magazine
Nexus
Working with elderly
Old Rectory Project
General Unrestricted
Fund
Total Unrestricted Funds|**1 January**
**2020**
**Incoming**
**resources**
**Outgoing**
**resources**
**Transfers**
**In / (Out)**
**Unrealised**
**gains**
**31 December**
**2020**
**£**
**£**
**£**
**£**
**£**
**£**
80,000
-
-
37,123
12,953 130,076
23,394
-
-
(23,394)
- -
2,426
7,773
(8,415)
-
- 1,783
-
2,004
(1,802)
1,506
- 1,708
203
-
(203)
-
- -
72,000
-
-
(72,000)
- -|
|---|---|
||178,023
9,777
(10,420)
(56,765)
12,953 133,567
157,475
390,058
(440,334)
52,827 9,974 170,000|
||335,498
399,835
(450,754)
(3,939)
22,927 303,567|
The Quinquennial and Rectory Project designated funds were reassigned to the Operational Reserve and General funds.
**Page 33**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **23. UNRESTRICTED FUNDS (continued)**
1. The Operational Reserve Fund holds funds to ensure that unrestricted expenditure can be met if there is a fall in income. This was increased in 2020 by funds reallocated from the Rectory Designated funds.
2. The Quinquennial Sinking Fund was returned to General Funds in 2020. The Trustees believe the enhanced Operational Reserve is sufficient to meet the cost of repairs identified from quinquennial reviews.
3. The Bridge Fund holds funds received for the publication of "The Bridge" magazine, published 6 times per year. Income and expenses for The Bridge are shown separately in notes 4 and 9 respectively.
4. The Nexus Fund was previously included in General Funds. However, it was separately designated in 2020.
5. The Old Rectory Fund designated monies were reallocated to the Operational Reserve and General Funds in 2020, as the remaining money held in the restricted fund is believed sufficient to cover remaining project requirements, mainly related to upgrading of the Church Centre.
## **24. Analysis of Net Assets between Funds**
|**Restricted Funds**
Property Fund
Church Family Support Fund
Prime Time Fund
Word and Worship
Youth and Children Work
Old Rectory Project
Re-ordering Project
Staniford Children Fund
Special Collections Fund
Centre / Yew Tree Café Project
**Total Restricted Funds**
Unrestricted Funds
**Total Funds**
|**Liabilities**
**Total**
**Fixed Net current**
**over one 31 December**
**assets**
**assets**
**year**
**2021**
**£**
**£**
**£**
**£**
3,591,713
(440,000)
3,151,713
72,651
72,651
2,105
2,105
29,498
29,498
25,249
25,249
175,461 (87,500) 87,961
47,494
47,494
16,022
16,022
279
279
3,398
4,603
8,001|
|---|---|
||3,595,111
373,362 (527,500)
3,440,973
1,235
311,307
312,542|
||3,596,346
684,669(527,500)
3,753,515|
**Page 34**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **24. Analysis of Net Assets between Funds - 2020**
|**Restricted Funds**
Property Fund
Church Family Support Fund
Prime Time Fund
Word and Worship
Youth and Children Work
Other restricted income
Old Rectory Project
Re-ordering Project
Staniford Children Fund
Special Collections Fund
Centre Refurbishment Project
Livestream Project
**Total Restricted Funds**
Unrestricted Funds
**Total Funds**
|**Liabilities**
**Total**
**Fixed**
**Net current**
**over one 31 December**
**assets**
**assets**
**year**
**2020**
**£**
**£**
**£**
**£**
3,630,046
(440,000)
3,190,046
62,819
62,819
2,105
2,105
44,015
44,015
25,249
25,249
-
-
161,656
(95,000) 66,656
41,583
41,583
13,640
13,640
-
-
39,840
39,840
-
-|
|---|---|
||3,630,046
390,906
(535,000)
3,485,953
1,729
301,838
303,567|
||3,631,775
692,745
(535,000)
3,789,520|
## **25. Operating Leases**
## **Lessee**
The charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Due within one year|1,321|1,321|
|Due between two and five years|3,302|4,623|
4,623 5,944
## **Lessor**
The charity was due minimum lease payments under non-cancellable leases of investment properties, which fall due as follows:
|Due within one year|**2021**
**2020**
**£**
**£**
11,950 10,413|
|---|---|
||11,950 10,413|
**Page 35**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2021**
## **26. Related Party Transactions**
During the year 14 (2020 - 13) Trustees gave a total of £51,260 (2020 - £56,855) in donations to the church. Jacob Taylor, son of Simon Taylor (Rector), continued to provide online broadcasting to the charity in 2021 under a contract for services.
Judith Hawkey, wife of Michael Hawkey (trustee to May 2021), was employed by the charity as Children’s Worker from February 2020 to August 2021.
Catherine Garner, wife of Christopher Garner (trustee from May 2021), has been employed by the charity as Administrator since 2019.
Amounts paid under these contracts during the relevant months of 2021 amounted to £20,656.
None of the key management personnel is remunerated by the charity: the Rector and Associate Minister are remunerated by the Guildford Diocesan Board of Finance.
## **27. Net Cash Provided by Operating Activities**
**Reconciliation of net income / expenditure to net cash flow from operating activities**
|**2021**
**2020**
**£**
**£**
**Net income for the reporting period**
(36,005)
413,891
Adjustments for:
Depreciation charges
38,827
38,454
(Gains) on investments
(49,563)
(480,003)
Interest & rents from investments
(42,202)
(23,854)
Decrease / (increase) in debtors
2,425
38,966
(Decrease) / increase in creditors
(13,645)
(3,659)
**Net cash provided by operating activities**
(100,163)
(16,207)
**28. Analysis of change in Net Cash**
**As at 1**
**As at 31**
**Jan 2021**
**Cashflow**
**Dec2021**
**£**
**£**
**£**
Cash at bank and in hand
396,727
(11,359)
385,368
Loans falling due within one year
-
(7,500)
(7,500)
Loans falling due after one year *
(95,000)
7,500
(87,500)
301,727
(11,359)
290,368
* Excludes Church Commissioners loan linked to potential asset sale at estimated value of £440,000
**As at 1**
**As at 31**
**Jan 2020**
**Cashflow**
**Dec2020**
**£**
**£**
**£**
Cash at bank and in hand
423,594
(26,867)
396,727
Loans falling due within one year
(5,000)
5,000
-
Loans falling due after one year *
(95,000)
-
(95,000)
323,594
(21,867)
301,727|
|**2021**
**2020**
**£**
**£**
(36,005)
413,891
38,827
38,454
(49,563)
(480,003)
(42,202)
(23,854)
2,425
38,966
(13,645)
(3,659)
(100,163)
(16,207)
**As at 1**
**As at 31**
**Jan 2021**
**Cashflow**
**Dec2021**
**£**
**£**
**£**
396,727
(11,359)
385,368
-
(7,500)
(7,500)
(95,000)
7,500
(87,500)|
|---|---|---|
|||301,727
(11,359)
290,368|
||323,594
(21,867)
301,727||
* Excludes Church Commissioners loan linked to potential asset sale at estimated value of £440,000