**THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE**
## **AUDITED TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
**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 2022**
CHARITY REGISTRATION NUMBER
1128305
TRUSTEES: The Rev Simon Taylor Dr Karen Hart The Rev Simon Willetts Mr Dudley Hilton The Rev Patrick Samuels Mr Stephen Kinder The Rev Andrew Spencer Mr Martin Lambert Mrs. Sarah Black Mrs Jill Mace Mr Patrick Elshen Mr. Robin Morris Mr Christopher Garner Mr Graham Sopp Mrs Shelagh Godwin Mr Ian Tomes Mrs Susan Hardy Mr David Wilkin Mrs Penny Harris Mr Mark Williams 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
**BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2022**
## **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 2022. 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, building community, 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 2022 was 240 (2021: 231). During 2022, church activities returned to a more normal pattern following the disruption from Covid-19 in the previous two years, with associated church closures and restrictions on gathering in person. For 2022, average weekly attendance was 115 adults and 30 children (under 16) (2021: 90 adults and 35 children).
**Page 3**
**BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT**
**OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2022 (continued)**
## **Achievements and Performance (continued)**
The start of 2022 was disrupted by the Omicron variant of Covid-19, but from February onwards activities increasingly returned to normal and in person church attendance was on a growing trend during the year. Most services continued to be livestreamed, and the availability of services to view online at a later date proved particularly popular.
Similarly, Youth and Children’s work increasingly returned to normal during the year. ABC toddler groups took place during the week, and Sunday children’s groups, Pathfinders and Ichthus for teenagers met regularly and some trips away took place.
The Older Person’s Ministry continued to provide very valuable pastoral support with hearing aid clinics and social activities throughout the year.
The church continued to use volunteers to support activities as much as possible, although it has proved more difficult to attract volunteers following the Covid disruption. 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 March 2022, the Yew Tree Café opened in the former Church Centre building, as part of the church’s outreach to the wider community, involving the employment of a full time manager and two part-time assistant managers as well as around 20 volunteers. During the first few months of operation revenue grew steadily, before stabilising at around £6,000 per month. At that level, it is broadly covering ongoing operating costs, although PCC has budgeted for a small deficit each year.
In August 2022 we welcomed a new Director of Children and Youth, Ben Barnes, replacing Anto Ficatier who had left in June 2022.
The church supported various organisations with grants during the year as detailed in Note 11. Total grants to organisations in 2022 totalled £16,978 (2021: £21,352). Following the Russian invasion of Ukraine, the remit of the Church Family Support Fund was expanded to provide support to Ukrainian families seeking refuge in the UK. Total CFSF grants to individuals in 2022 totalled £7,650 (2021: £4,870).
**Page 4**
**BUSBRIDGE PAROCHIAL CHURCH COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED AT 31 DECEMBER 2022 (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 2022, 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 Patrick Samuels
Churchwardens
Mr Keith Harper (until May 2022) Mrs Susan Hardy Mr David Wilkin (from May 2022)
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**
Mrs Sarah Black (from May 2022) Mr Stephen Kinder (from January 2022) Mr Patrick Elshen Mrs Jill Mace Mr Christopher Garner Mr Robin Morris Mrs Shelagh Godwin Mr Graham Sopp Dr Karen Hart Mr Ian Tomes (from May 2022) Mrs Penny Harris Mr Mark Williams
## **Co-opted Members**
Curate The Rev Andrew Spencer
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 one special meeting in May 2022 to consider proposals for employment of youth and children workers. 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 2022 (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 £609,101 (2021: £487,104).
Total unrestricted income amounted to £505,773 (2021: £425,189), the majority of which related to planned giving, which including gift aid was £271,988 (2021: £270,457). Also included is a grant of £30,000 from Guildford Diocese to further the Minster project in 2023.
## **RESOURCES USED**
Total resources expended for the year was £665,786 (2021: £572,672), of which £486,299 (2021: £452,889) was from unrestricted funds, with parish share, £109,330 (2021: £108,111) being the highest single cost.
Total employment costs, including social security and pension contributions totalled £166,580 (2021: £151,406). New Café paid staff costs were partly balanced by lower costs due to vacancies in Youth and Word and Worship.
## **UNRESTRICTED FUNDS**
At year end unrestricted funds were £326,065 (2021: £312,542).
Further details of all Unrestricted Funds can be found in note 23 on page 32.
## **RESTRICTED FUNDS**
At the year end restricted funds were £3,463,746 (2021: £3,440,973).
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 2022 (continued)**
## **FUTURE PLANS**
In July 2022, PCC made a significant decision (in line with similar decisions of the trustees of Hambledon PCC and Godalming PCC) to work towards a merger of the 3 parishes with effect from 1[st] January 2024. The move is fully supported by the Diocese of Guildford. The decision was endorsed by an Extraordinary Parochial Church Meeting in October 2022. The intention is that the process to put the planned merger into effect will be completed during 2023, with the assets and liabilities of Hambledon and Godalming being transferred to Busbridge PCC on 1[st] January 2024. Busbridge PCC would then be renamed Godalming Minster.
During 2023, Busbridge church intends to continue its mission and ministry to the local community with a similar range of Sunday services and other activities as currently.
## **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.
## **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. The present higher level of unrestricted reserves is felt to be reasonable on account of the planned merger with Godalming and Hambledon parishes.
## **INVESTMENT POLICY**
The PCC has a policy of holding shares in the CBF Church of England Investment Fund to obtain a higher longterm 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 2022 (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 2019 (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 2023
Martin Lambert, Treasurer
Simon Willetts, Associate Minister
**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 2022 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 2022 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.
**Page 9**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE (continued)**
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 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 which the Charities (Accounts and Reports) Regulations 2008 require 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.
**Page 10**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE**
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 **.**
## **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.
**Page 11**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF BUSBRIDGE (continued)**
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.
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 Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 2022**
|**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 / (losses) 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**
**2022**
**2021**
**£**
**£**
**£**
**£**
315,530 103,328
418,858
356,718
66,516
- 66,516 9,786
12,419
- 12,419
11,421
49,270
- 49,270
50,700
62,038
- 62,038
58,479|
|---|---|
||505,773 103,328
609,101
487,104|
||9,665
- 9,665
25,006
455,699 179,487
635,186
527,014
20,935
- 20,935
20,652|
||486,299 179,487
665,786
572,672|
||19,474 (76,159) (56,685) (85,568)
(19,892)
112,873 92,981
49,563|
||(418)
36,714 36,296 (36,005)
13,941 (13,941)
-
-|
||13,523 22,773 36,296 (36,005)
312,542 3,440,973 3,753,515 3,789,520|
||326,065 3,463,746 3,789,811 3,753,515|
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 2022**
|**Notes**
**Fixed Assets**
Tangible assets
14
Investments
15
**Current Assets**
Stock
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**|**2022**
**2021**
**£**
**£**
2,355,448
2,386,346
1,331,000
1,210,000|
|---|---|
||3,686,448
3,596,346
260
-
32,951 30,680
285,000 303,020
347,039 385,368|
||665,250 719,068
(41,887)
(34,399)|
||623,363 684,669|
||4,309,811
4,281,015
(520,000) (527,500)|
||3,789,811
3,753,515|
||3,463,746
3,440,973
326,065 312,542|
||3,789,811
3,753,515|
Approved by the Parochial Church Council on: 2023 and signed on its behalf by: Reverend S Willetts Mr M Lambert Associate Minister Treasurer
**Page 14**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL CASH FLOW STATEMENT AT 31 DECEMBER 2022**
|**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**
**2022**
**Cash and cash equivalents at 31 Dec**
**2022**|
41,353
(10,000)
(10,543)|**2022**
**£**
(44,140)
20,811
(15,000)|42,202
50,000
(3,398)|**2021**
**£**
(100,163)
88,804
-|
|---|---|---|---|---|
||(15,000)||
-||
||||
||
|||(38,329)
385,368||(11,359)
396,727|
|||347,039||385,368|
**Page 15**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2022**
## **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), 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 amounts 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 that might cast significant doubt on the ability of the charity to continue as a going concern. Particularly on account of voluntary giving continuing largely unchanged from previous years, the available reserves and the ability to manage expenditure in line with any future variation in income, the going concern basis is still considered appropriate. In addition, considering the potential merger with the parishes of Godalming and Hambledon within the next 12 months, the PCC has also considered the financial position and future plans of those parishes and determined that the merger does not affect the appropriateness of the going concern basis.
## **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 church buildings. 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 2022**
## **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 church wardens 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 deemed cost. The Trustees deem the residual value 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 2022**
## **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 Stock**
Stock is trading stock held by the Café and is recorded at the lower of cost and net realisable value.
## **1.11 Debtors**
Other debtors are recorded at settlement amount. Prepayments are valued at the amounts prepaid at the balance sheet date.
## **1.12 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.
## **1.13 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.
## **1.14 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.
## **1.15 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.
## **1.16 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.
## **1.17 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 2022**
## **1. ACCOUNTING POLICIES (continued)**
## **1.18 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 to the general purposes of the PCC. They include Designated Funds earmarked by the PCC for a particular purpose. The PCC has five Designated Funds (2021 – three); the Operational Reserve Fund, The Bridge (magazine) Fund, the Nexus Fund, the Yew Tree Café Fund and the Minster 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 2022**
## **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 - Other
Directed gifts
Word and Worship
Old Rectory
Reordering
Youth Fund
Church Family Support Fund
Café project
Minster project
Grant income
Legacy income|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
185,430
- 185,430 183,527
46,900
- 46,900 45,929
39,658
- 39,658 41,001
7,172
- 7,172 16,356
1,630
- 1,630 3,139
72
- 72 453
- 7,549
7,549 4,880
317 1,110
1,427 897
1,507
- 1,507 4,380
- 22,089
22,089 11,390
- 39,230
39,230 21,305
- 3,750
3,750 8,708
- 4,950
4,950
-
- 5,943
5,943 7,039
- 18,707
18,707 7,715
30,000
- 30,000
-
1,844
- 1,844
-|
|---|---|
||314,530 103,328 417,858 356,718
1,000
- 1,000
-|
||315,530 103,328 418,858 356,718|
Included in 2021 was £61,915 of restricted income.
## **4. Charitable Activities**
|**e Activities**||
|---|---|
|Older Persons activities
Youth & Children activities
The Bridge magazine
Nexus
Yew Tree Café
Other parish activities|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
459
- 459
272
1,903
- 1,903
1,554
8,092
- 8,092
6,602
1,761
- 1,761
1,238
54,301
- 54,301
-
-
- -
120|
||66,516
- 66,516 9,786|
All income from charitable activities was unrestricted in 2021.
**Page 20**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
## **5. Other Trading Activities**
|**Trading Activities**||
|---|---|
|PCC fees and services
Centre use|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
12,089
- 12,089 11,421
330
- 330
-|
||12,419
- 12,419 11,421|
All income from other trading activities was unrestricted in 2021.
## **6. Income from Investments**
|Bank interest:
Short term deposit accounts
Rents:
34 High Ridge
Church Cottage
School House|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
1,720
- 1,720 766
13,500
- 13,500 13,500
15,800
- 15,800 16,000
18,250
- 18,250 20,434|
|---|---|
||49,270
- 49,270 50,700|
All investment income in 2021 was unrestricted.
## **7. Other Ordinary Incoming Resources**
|Other income
Hambledon|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
1,289
- 1,289 1,199
60,749
- 60,749 57,280|
|---|---|
||62,038
- 62,038 58,479|
All Other Ordinary Incoming Resources in 2021 was unrestricted.
**Page 21**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
|**8. Raising Funds**|**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds £**|**Funds £**|**2022 £**|**2021 £**|
|Investment property costs|
9,665|-|9,665|25,006|
||9,665|-|9,665|25,006|
|All costs for raising funds in 2021 were|unrestricted.||||
|**9. Charitable Activities**|||||
||**Unrestricted**|**Restricted**|**Total**|**Total**|
||**Funds £**|**Funds £**|**2022 £**|**2021 £**|
|**Grants**|||||
|Outward giving|
10,540||10,540|15,873|
|Church Family Support Fund grants|
-|7,650|7,650|4,870|
|Special collections|
-|6,438|6,438|5,479|
||10,540|14,088|24,628|26,222|
|Directed gifts|
1,255|-|1,255|4,144|
||11,795|14,088|25,883|30,366|
Included in 2021 are grants from restricted funds of £10,349. 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 2022**
|**Ministry**
Parish share
Churches Together
Clergy expenses
Rectory costs
Clergy fees
Hambledon clergy
Service costs
Word & Worship
Youth & children ministry
Older persons & befriending ministry
Pastoral
Evangelism
Other ministry
Minster|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
109,330 -
109,330 108,111
960 - 960 960
2,148 - 2,148 1,700
2,051 - 2,051 3,359
4,876 - 4,876 5,147
38,970 -
38,970 39,507
8,093 - 8,093 23,566
- 11,808
11,808 28,750
54,154 -
54,154 65,760
17,489 -
17,489 16,907
556 - 556 510
1,157 - 1,157 180
4,255 - 4,255 1,484
211 - 211 -|
|---|---|
||244,248 11,808
256,056 295,941|
Included in 2021 are payments from restricted funds of £28,750.
|**Training**
Training
**Parish Activities**
Youth & children activities
The Bridge magazine
Nexus
Yew Tree Café operations
Café depreciation||
|---|---|
||1,287
- 1,287 334|
||574 - 574 2,183
8,696 - 8,696 7,222
780 - 780 304
62,529 -
62,529 -
2,614 - 2,614 -|
||75,192
- 75,192 9,709|
All payments for training and parish activities in 2021 were from unrestricted funds.
**Page 23**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
|**Property Costs**
Church running costs
Church maintenance
Upkeep of churchyard
Re-ordering
Quinquennial
Old Rectory running costs
Depreciation Old Rectory
Centre running costs
Café project
Loan interest Phillips Close
Phillips Close running costs
Clergy property rental|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
14,855
-
14,855
9,195
6,140
-
6,140
4,704
3,614
-
3,614
3,492
-
8,143
8,143
2,797
1,059
-
1,059
-
8,329
-
8,329
8,076
-
38,333
38,333
38,333
-
-
-
897
-
107,115
107,115
39,554
7,443
-
7,443
6,924
7,377
-
7,377
4,772
-
-
-
1,458|
|---|---|
||48,817
153,592
202,409
120,202|
Included in 2021 are payments from restricted funds of £80,684.
Café project costs are the building refurbishment, along with £7,350 pre-opening salary costs.
|**Support Costs**|||||
|---|---|---|---|---|
|General administrative costs
|24,279|-
|24,279|22,294|
|Administration salaries
|49,586|-
|49,586|47,674|
|Depreciation
|494|-
|494|494|
||74,359|-
|74,359|70,462|
|All support costs relate to charitable activities (2021 - all relate to charitable activities|||from unrestricted funds)||
|**Total Charitable Activities Expenditure**
|455,699|179,487
|635,186|527,014|
**Page 24**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
|**10. Other Costs**
Audit fees
Audit fees - prior year under accrual
Accountancy & payroll
Bank charges|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds £**
**Funds £**
**2022 £**
**2021 £**
10,000 - 10,000 10,000
302 - 302 500
9,469 - 9,469 9,000
1,164 - 1,164 1,152|
|---|---|
||20,935
- 20,935 20,652|
All 'other costs' for 2021 were from unrestricted funds. Other costs relate to the governance costs of the charity.
## **11. Grants in Year**
|**Grants to organisations in Year**
Nazareth Way
Bible Society
Trinity Trust
Tearfund
Five Talents UK
Oakleaf Enterprises
A Rocha UK
CPAS
Elam Ministries
Mechanics for Africa
Open Door
Guildford Besom
Salvador Childrens Trust
St Mark's Community
Surrey Search & Rescue
Warehouse Christian Trust
Habitat for Humanity
CFSF grants to Individuals
|**Total**
**2022**
**£**
4,000
2,125
2,000
1,250
1,113
900
750
750
750
750
750
700
500
500
60
40
40|
|---|---|
||16,978
7,650|
||24,628|
Included in the grant to the Bible Society is £1,375 from the 2021 Christmas Appeal.
**Page 25**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
## **12. Staff Costs**
|Wages and Salaries
Employer National Insurance costs
Employer pension costs|**2022**
**2021**
**£**
**£**
157,875
141,763
4,840
5,756
3,865
3,887|
|---|---|
||166,580
151,406|
These costs include the youth minister, children's workers, older persons ministry leader, word and worship minister, administrative staff and café paid staff.
The average number of full and part-time staff during the year was 11 (2021 - 9).
No employees received emoluments in excess of £60,000 (2021 - None).
## **13. PCC Members' Remuneration**
The PCC members did not receive any remuneration in the year (2021 - None).
PCC members expenses of £9,580 (2021 - £4,341) were reimbursed in the year.
**Page 26**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
## **14. Tangible Fixed Assets**
|**Cost or valuation**
At 1 January 2022
Additions
Disposals
At 31 December 2022
**Depreciation**
At 1 January 2022
Disposals
Charge in year
At 31 December 2022
**Net Book Values**
At 31 December 2021
At 31 December 2022|**Freehold**
**Office/Other**
**Fixtures &**
**Properties**
**equipment**
**Fittings**
**Total**
**£**
**£**
**£**
**£**
2,514,590
71,395
35,678
2,621,663
-
10,543
10,543
(44,897)
(32,280)
(77,177)|
|---|---|
||2,514,590
26,498
13,941
2,555,029|
||132,877
70,160
32,280
235,317
(44,897)
(32,280)
(77,177)
38,333
494
2,614
41,441|
||171,210
25,757
2,614
199,581|
||2,381,713
1,235
3,398
2,386,346|
||2,343,380
741
11,327
2,355,448|
Fixtures & Fittings are now café fittings and equipment, including £10,543 added in 2022 and £3,398 in 2021 at cost.
## _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. In 2016 the church adopted FRS102 and therefore began to carry 14 Philips Close at a deemed cost of £440,000. 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. 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 2022 was 7.3%. For 2022 the total interest paid on this value linked loan was £7,443.
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 2022**
## **15. Investment Properties**
|**Cost or valuation**
At 1 January 2022
Transfers in
Revaluation in year
At 31 December 2022|**2022**
**2021**
**£**
**£**
1,210,000 1,210,000
- -
121,000 -|
|---|---|
||1,331,000 1,210,000|
The market value of investment properties has been increased by 10% at December 2022.
The property at 34 High Ridge was valued at £396,000 in December 2022 by the Trustees based on current market conditions. The historic cost of this property is £83,950.
School House was revalued at £550,000 in December 2022 by the Trustees based on current market conditions. The historic cost of this property is £400.
Church Cottage was valued at £385,000 in December 2022 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 2022**
## **16. Debtors**
|**Amounts receivable within one year**
Gift Aid recoverable
Prepayments & accrued income
Other debtors
**17. Current Asset Investments**
Market value at 1 January 2022
Additions / (Disposals)
Unrealised Gain / (Loss) in year
At 31 December 2022
The cost of investments is £201,028 (2021 - £191,028)
**18. Creditors Falling Due Within One Year**
Trade creditors
Accruals
Taxation and Social Security
Other creditors
Old Rectory Project loan
At 31 December 2022|**2022**
**2021**
**£**
**£**
14,288 14,812
555 1,178
18,108 14,691|
|---|---|
||32,951 30,680|
||**2022**
**2021**
**£**
**£**
303,020 303,457
10,000 (50,000)
(28,019)
49,563|
||285,000 303,020|
||**2022**
**2021**
**£**
**£**
9,810 -
24,114 21,655
2,025 1,795
5,938 3,449
- 7,500|
||41,887 34,399|
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 2022**
## **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 2022|**2022**
**2021**
**£**
**£**
440,000
440,000
80,000
87,500|
||520,000
527,500|
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 in 2022 was 7.3%.
## **20. Old Rectory Project Loan**
|Due within one year
Due between two and five years
At 31 December 2022|**2022**
**2021**
**£**
**£**
-
7,500
80,000
87,500|
|---|---|
||80,000
95,000|
The loans have been provided on an interest free basis. The remaining £80,000 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 £9,019 (2021 - £9,070).
At the year end, no contributions were outstanding (2021 - £672).
**Page 30**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
## **22. Restricted Funds**
|**2. 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
Café project
Total Restricted Funds|**1 January 2022**
**Incoming**
**resources**
**Outgoing**
**resources**
**Transfers In /**
**(Out)**
**Unrealised**
**gains/(losses)**
**31 December**
**2022**
**£**
**£**
**£**
**£**
**£**
**£**
3,151,713
-
(38,333)
-
121,000 3,234,380
72,651
5,943
(7,650)
-
(4,905)
66,039
2,105
-
-
-
- 2,105
29,498
22,089
(11,808)
-
(1,753)
38,026
25,249
4,950
-
-
- 30,199
87,961
39,230
-
(94,349)
- 32,842
47,494
3,750
(8,143)
-
- 43,101
16,022
-
-
-
(1,469)
14,553
279
8,659
(6,438)
-
- 2,500
8,001
18,707
(107,115)
80,408
- 0|
||3,440,973
103,328
(179,487)
(13,941)
112,873 3,463,746|
Café project costs are the building refurbishment, along with £7,350 pre-opening salary costs.
£94,349 was transferred from the Old Rectory fund to complete the project as the café had been a component of the Old Rectory project from the outset.
£13,941 capitalised fittings & equipment were transferred to the Café Designated fund.
## **Restricted funds for the year ended 31 December 2021**
|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
Café project
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
8,709
(2,797)
-
- 47,494
13,640
-
-
-
2,382 16,022
0
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|
**Page 31**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
## **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 as a Café, which was completed in 2022. 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 the following years, although somewhat delayed on account of Covid-19. The balance of the work is expected to be completed during 2023.
9. The Youth and Children Work Fund holds monies given specifically for projects to support work with young people.
10. The Café Project / 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 opened in March 2022.
**Page 32**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
|**23. Unrestricted Funds**
**Designated Funds**
Operational Reserve
The Bridge magazine
Nexus
Yew Tree Café
Minster
General Fund
Total Unrestricted Funds|**1 January 2022**
**Incoming**
**resources**
**Outgoing**
**resources**
**Transfers In**
**/ (Out)**
**Unrealised**
**gains/(losses)**
**31 December**
**2022**
**£**
**£**
**£**
**£**
**£**
**£**
152,794
-
-
-
(14,006) 138,788
1,164
8,092
(8,696)
-
- 560
1,168
1,761
(1,820)
-
- 1,110
-
54,301
(65,143)
22,169
-
11,327
-
30,000
(211)
-
- 29,790|
|---|---|
||155,126
94,154
(75,869)
22,169
(14,006) 181,574
157,416
411,619
(410,430)
(8,228)
(5,886)
144,491|
||312,542
505,773
(486,299)
13,941
(19,892) 326,065|
The Yew Tree Café opened in March 2022. The cash deficit of £8,228 has been covered by a transfer from General Funds.
Also transferred in from the Café project fund were £13,941 of assets pre depreciation.
## **Unrestricted funds for the year ended 31 December 2021**
|**Designated Funds**
Operational Reserve
The Bridge magazine
Nexus
General 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|
**Page 33**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
## **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.
2. 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.
3. The Nexus Fund holds funds raised for the group’s activities as well as grants to its chosen charities. The group raised £850 with its 2022 Christmas Quiz, awarded to Oakleaf Enterprises.
4. The Yew Tree Café Fund holds the operating assets of the café which opened in March 2022. The first nine months of operation recorded a deficit of £10,842 including depreciation.
5. The Minster Fund holds grants from Guildford Diocese in order to further the Minster merger in 2023.
## **24. Analysis of Net Assets between Funds**
|**is of Net Assets between Funds**||
|---|---|
|**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
Café Project
**Total Restricted Funds**
Unrestricted Funds
**Total Funds**
|**Net**
**Liabilities**
**Total**
**Fixed**
**current**
**over one 31 December**
**assets**
**assets**
**year**
**2022**
**£**
**£**
**£**
**£**
3,674,380
(440,000)
3,234,380
66,039
66,039
2,105
2,105
38,026
38,026
30,199
30,199
112,842 (80,000)
32,842
43,101
43,101
14,553
14,553
2,500
2,500
0
0|
||3,674,380 309,366
(520,000)
3,463,746
12,068 313,997
326,065|
||3,686,448 623,363
(520,000)3,789,811|
**Page 34**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
|**24. Analysis of Net Assets between Funds - 2021**
**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
Café Project
**Total Restricted Funds**
Unrestricted Funds
**Total Funds**
|**Net**
**Liabilities**
**Total**
**Fixed**
**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
8,001
8,001|
|---|---|
||3,591,713 376,760 (527,500)
3,440,973
1,235 311,307
312,542|
||3,592,948 688,067(527,500)
3,753,515|
## **25. Operating Leases**
## **Lessee**
The charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Due within one year
Due between two and five years
**Lessor**
The charity was due minimum lease payments under non-cancellable leases
of investment properties, which fall due as follows:
Due within one year
|**2022**
**2021**
**£**
**£**
1,321 1,321
1,981 3,302|
|---|---|
||3,302 4,623|
||**2022**
**2021**
**£**
**£**
11,975 11,950|
||11,975 11,950|
**Page 35**
## **BUSBRIDGE PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS (continued) AT 31 DECEMBER 2022**
## **26. Related Party Transactions**
During the year 19 (2021 - 14) trustees gave a total of £57,601 (2021 - £51,260) in donations to the church. Jacob Taylor, son of Simon Taylor (Rector), continued to provide online broadcasting to the charity in 2022 under a contract for services. Luke Taylor, son of Simon Taylor (Rector) was employed as Café Assistant Manager from March to August 2022.
Catherine Garner, wife of Christopher Garner (trustee), has been employed by the charity as Administrator since 2019.
Amounts paid under these contracts during 2022 amounted to £17,530.
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**
|**Net income for the reporting period**
Adjustments for:
Depreciation charges
Losses / (gains) on investments
Interest & rents from investments
Decrease / (increase) in stock
Decrease / (increase) in debtors
(Decrease) / increase in creditors
**Net cash provided by operating activities**|**2022**
**2021**
**£**
**£**
36,296
(36,005)
41,441
38,827
(92,981)
(49,563)
(41,353)
(42,202)
(260)
(2,271)
2,425
14,988
(13,645)|
|---|---|
||(44,140)
(100,163)|
## **28. Analysis of change in Net Cash**
|||||
|---|---|---|---|
|**28. Analysis of change in Net Cash**|**As at 1**||**As at 31**|
||**Jan 2022**|**Cashflow**|**Dec 2022**|
||**£**|**£**|**£**|
|Cash at bank and in hand|385,368|(38,329)|347,039|
|Loans falling due within one year|(7,500)|7,500|-|
|Loans falling due after one year *|(87,500)|7,500|(80,000)|
||290,368|(23,329)|267,039|
|* Excludes Church Commissioners loan linked to potential asset||sale at estimated|value of £440,000|
||**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 *|(87,500)|-|(87,500)|
||301,727|(11,359)|290,368|
* Excludes Church Commissioners loan linked to potential asset sale at estimated value of £440,000