ROWLEDGE PAROCHIAL CHURCH COUNCIL FINANCIAL REVIEW
2020
OVERVIEW
- The church funds were in credit throughout 2020 and at the end of the year.
Following several years of Income & Expenditure deficits that had reduced the General Fund to near zero at the end of 2019, the 2020 accounts showed a surplus of £27,737.
Total Income was £259,858, a rise of £8,043 (3%) relative to 2019, whilst Total Expenditure was £232,122, a £22,463 (9%) drop.
This result was very much better than expected at the start and during the early months of the year; and the Covid19 pandemic did not have the devastating effect that was feared initially. This was thanks to a total of approximately £50k of one-off income, or expense rebates.
The total of all Voluntary Giving (including Gift Aid and Legacies) rose by £8k to £137,311, though approximately £37k of this was one-off – including £21.5k in legacies, and £12k from an appeal in May. This increase was partially offset by reduced income from fundraising events and reduced fees for weddings, the result of Covid restrictions.
Surprisingly, Little Fishes Nursery income for 2020 was £3k higher than in 2019, despite its closure to all but children of keyworkers for part of the Spring Term and the Summer Term. Although much of the income for parent-funded children was lost during these partial closures, the Councils continued to pay for all government-funded care as if all children were attending, plus more for further keyworker children who joined while their own pre-school was closed. LF income also included £2,168 of government CJRS payments for nursery workers who were furloughed during the pandemic lockdown. This claim was in respect of the work not required for care of privately-funded children. A further £3,582 CJRS payment was received for furlough of the Parish Administrator.
The £22k drop in total expenditure relative to 2019 was mainly due to:
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A decision by the PCC in late 2019 to move to an essential-spend-only regime for the immediate future, because it was clear that the underlying finances were in serious deficit, with predictable regular costs significantly exceeding predictable income. As a result little was spent on Church Maintenance and Repairs in 2020, a £15k reduction, amongst other savings.
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A £7k rebate in the Parish Share Fee charged by Guildford Diocese. This was to help with expected reductions in service collections, wedding fees and other income ( - though much of this rebate just offset a planned 2020 increase in this Parish Share fee).
1
RESERVES
- The policy of the PCC is to hold sufficient unrestricted funds to ensure that costs for the following six months can be paid, to have a reserve for major church fabric repairs, a reserve for repairs to the vicarage and ideally a development fund to assist with seeding new growth in activities. All current funds are unrestricted. The level of net current assets/liabilities (£130,846) at the end of 2020 did exceed six months’ expenditure (£116,061), though much of this net assets total is notionally allocated to the various named funds.
MOVEMENT IN RESERVES
- During 2020 total funds increased from £239,185 to £266,922. Of this amount, £136,076 is tied up in the book value of the house (25 Broad Ha’penny), which is used as accommodation for the Children’s Minister. The house is depreciated at 2% per annum (£3,776).
FUNDS
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4.1 The Church Fabric Sinking Fund . This is in theory to enable any major work to be carried out when needed, in conjunction with associated fundraising. A Quinquennial Inspection report in early 2019 recommended that £8,000 should ideally be spent on works over 18 months and a further £35,000 over 5 years. In fact none of this work was carried out in 2019 or 2020 because of the significant deficit that was forecast for the full year finances early in the year, and the PCC were reluctant to spend on maintenance. At the end of 2020 the Fund stood unchanged at £30,000.
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4.2 The Little Fishes Fund . This is to cover expenditure for the nursery school and is normally set to a value equivalent to six months’ of LF expenditure. £78 was transferred from the Little Fishes Fund to the General Fund at the end of 2020 to reduce it to £38,952 (50% of 2020 costs).
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4.3 The Vicarage Redecoration Fund . This is to cover costs for redecorating the vicarage as and when they arise. The balance remained unchanged at £3,000.
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4.4 The Russell Harvey Organ Fund . This fund derives from a legacy left by the late organist. While the funds are not restricted, the PCC has so far only used it for costs that are related to the organ, though there was no such expenditure in 2020. The very small increase over the year came from interest earned on the cash on one of the deposit accounts. The balance is £24,840 at end-2020.
2
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4.5 The House Reserve. This represents the accounting value of the house in Broad Ha’penny - £136,076 at end-2020.
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4.6 The General Fund. This is the retained income fund for running the church operations on a day-to-day basis. The aim is to build this up as a buffer against future deficits on the Income and Expenditure account, to a level such that further funds could be allocated elsewhere. The 2020 surplus has caused this Fund to rise to £34,054.
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4.7 The Development Fund . This has had a zero balance for some years, but it is intended to build it up again if and when the General Fund has a steady surplus.
FUNDING SOURCES AND THE USE OF FUNDS
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41% of income came from voluntary giving (incl Gift Aid but excl Donations and Legacies) and a further 41% came from Little Fishes.
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33% of total expenditure was for the Parish Share Fee which is paid to the Diocese, and 34% was spent on Little Fishes costs; with the balance used to run the church and develop its outreach to the village, particularly in Children’s activities.
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Surplus cash is held in the CCLA Church of England Deposit Fund to ensure that social, environmental and ethical considerations are taken into account when investing.
THE COMING YEAR
- In late 2019 the PCC cut out all but essential expenditure; this included postponing work recommended in the Quinquennial Inspection report and suspending Mission and Charity Giving, though Children’s Work was preserved. This regime continued for 2020.
The 2020 surplus was unexpected, achieved only by receipt of legacies, other one-off income, and Covid-related cost rebates.
The underlying financial situation is that regular, predictable expenditure continues to exceed predictable income so the 2021 Budget shows a deficit: and that is while continuing with the essential-expenditure-only regime which delays recommended repairs to Church fabric.
Andrew Fewster PCC Treasurer
- v.2 March 2021
3
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
Notes TOTAL FUNDS
| INCOME Voluntary income 2a Activities generating funds 2b Income from investments 2c Other incoming resources 2d Total Income EXPENDITURE Church activities 3a Cost of generating voluntary income 3b Total Expenditure NET INCOME/(EXP.)before investment gains NET GAINS ON INVESTMENTS NET INCOME/(EXPENDITURE) NET MOVEMENT IN TOTAL FUNDS Opening Balance Movement Closing Balance |
£ £ 129,464 4,711 588 117,052 251,815 251,885 2,700 254,585 (2,769) - (2,769) 241,954 (2,769) 239,185 2019 |
£ £ 137,311 644 333 121,569 259,858 232,005 116 232,122 27,737 - 27,737 239,185 27,737 266,922 2020 |
£ £ 137,311 644 333 121,569 259,858 232,005 116 232,122 27,737 - 27,737 239,185 27,737 266,922 2020 |
|---|---|---|---|
| 251,885 2,700 |
232,005 116 |
||
| 27,737 - |
|||
| 27,737 | |||
| 239,185 27,737 |
|||
| 266,922 |
All Funds are Unrestricted
All values are shown as as the underlying accurate ££.pp value rounded to the nearest £1. Totals may therefore appear not to add up exactly because of the rounding.
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE BALANCE SHEET AT 31 DECEMBER 2020
| Notes £ £ FIXED ASSETS Tangible 5 139,852 CURRENT ASSETS Debtors and Prepayments 6 10,117 Short term deposits 77,347 Cash at bank and in hand 18,284 105,748 LIABILITIES Creditors:amounts falling due 7a 4,083 in one year Vicar's Discretionary Fund 7b 1,705 Deferred Income 7c 626 6,414 NET CURRENT ASSETS/LIABILITIES 99,333 TOTAL ASSETS LESS CURRENT LIABILITIES 239,185 Creditors: amounts falling due after one year - TOTAL NET ASSETS 239,185 PARISH FUNDS Unrestricted Church Fabric Sinking Fund 30,000 Little Fishes 39,030 Vicarage Redecoration Fund 3,000 R Harvey Organ Fund 24,729 House Reserve 139,852 General Fund 2,574 TOTAL RESERVES 239,185 2019 |
£ £ 136,076 7,517 77,675 55,514 140,706 6,465 1,455 1,941 9,861 130,846 266,922 - 266,922 30,000 38,952 3,000 24,840 136,076 34,054 266,922 2020 |
£ £ 136,076 7,517 77,675 55,514 140,706 6,465 1,455 1,941 9,861 130,846 266,922 - 266,922 30,000 38,952 3,000 24,840 136,076 34,054 266,922 2020 |
|---|---|---|
| 140,706 6,465 1,455 1,941 |
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| 9,861 30,000 38,952 3,000 24,840 136,076 34,054 |
||
| 266,922 - |
||
| 266,922 | ||
| 266,922 | ||
All Funds are Unrestricted
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 ACCOUNTING POLICIES
Basis of financial statements
The PCC is a public benefit entity within the meaning of FRS102. The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs. They have been prepared under FRS102 (2016) as the applicable accounting standards and the 2016 version of the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP(FRS102)).
The financial statements have been prepared under the historical cost convention. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.
Consecrated and benefice property is not included in the accounts in accordance with s.10(2)(a) and (c) of the Charities Act 2011.
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes £ £ 2 INCOME 2a Voluntary Giving Voluntary Giving Voluntary Giving 97,150 Gift-Aid Tax Recovered 24,272 121,422 Donations 3,042 Legacies 5,000 8,042 129,464 2b ACTIVITIES FOR GENERATING FUNDS Village Fayre 1,210 R Waight Church History Talk 1,971 Photojournal sales 810 Cyclathon 365 Easyfundraising 20 Christmas Raffle 335 Christmas Tree Festival (2019) - Christmas Card sales - Other Fundraising - 4,711 2c INCOME FROM INVESTMENTS Interest 588 2d OTHER INCOME SOURCES Fees for Weddings and Funerals 7,390 Youth Activity fees - Little Fishes Income 9 Fees & Deposits 100,882 Merchandising 355 Outings 378 CJRS (Furlough) payments - Other 310 101,924 Magazine Income Subscriptions 2,283 Advertisements 5,435 7,718 Parish Room 20 CJRS (Furlough) payments, excl LF - Miscellaneous Income - 117,052 TOTAL INCOME 251,815 2019 |
£ £ 87,101 20,678 107,779 8,027 21,505 29,532 137,311 - - 150 - 72 - 43 345 35 2020 |
£ £ 87,101 20,678 107,779 8,027 21,505 29,532 137,311 - - 150 - 72 - 43 345 35 2020 |
|---|---|---|
| 8,027 21,505 |
||
| - - 150 - 72 - 43 345 35 |
||
| 137,311 | ||
| 101,892 238 131 2,168 948 |
644 | |
| 333 | ||
| 3,476 330 105,376 8,734 - 3,582 71 |
||
| 3,295 5,439 |
||
| 121,569 | ||
| 259,858 |
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes £ £ 3 EXPENDITURE 3a CHURCH ACTIVITIES General Expenditure Music 2,220 Heat Light and Water 4,743 Broadband and Telephone 1,031 Insurance 1,502 Printing and Stationery 4,094 Churchyard and Drive 7,849 Church Repairs and Maintenance 18,750 Service costs 446 Miscellaneous 543 41,179 Parochial Expenses Administration 7,277 Vicar's Costs 1,658 Mission, Ministry Costs - Vicarage Costs 1,254 10,189 Youth Costs 28,209 Little Fishes 9 78,060 House Costs (incl. £3776 depreciation each year) 5,496 Magazine Production Costs 6,441 Guildford Diocesan Parish Share Fee 80,811 Missions and Charities 8 1,500 251,885 3b FUND RAISING COSTS Photojournal printing cost 2,338 R Waight Church History Talk costs 342 Christmas cards for sale - Christmas Draw 20 2,700 TOTAL COSTS 254,585 2019 |
£ 155 4,372 1,354 1,680 5,721 8,177 3,998 1,348 - |
£ 26,807 10,955 28,175 77,904 8,759 2,309 77,096 - 2020 |
|---|---|---|
| 8,839 427 282 1,407 |
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| - - 116 - |
||
| 232,005 | ||
| 116 | ||
| 232,122 |
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 4 2019 4a STAFF COSTS £ Wages and Salaries (inc social security) Church Staff 27,679 Little Fishes Staff 71,166 98,845 |
2020 £ 28,836 73,166 |
|---|---|
| 102,002 |
During the year the PCC employed a Youth and Children's Minister, and an administrator.
It also employed staff to run the Little Fishes pre-school. During 2020 the PCC received £5,750.45 from HMRC as Coronavirus Job Retention Scheme payments, for furloughed Church and LF staff. These payments were processed in the accounts as income (see Notes 2d and 9) so staff costs above are the gross costs, not net of CJRS.
4b PAYMENTS TO PCC MEMBERS
There were no payments to PCC members during the year.
5 FIXED ASSETS
| Land and Buildings Actual Cost Starting Balance Disposal Additions at Cost Closing Balance Depreciation Starting Balance Withdrawn on Disposal Charge for the Year Closing Balance Closing Written Down Value |
2019 £ 188,810 - - |
£ 188,810 48,958 139,852 |
2020 £ 188,810 - - |
£ 188,810 52,734 |
|---|---|---|---|---|
| 45,182 - 3,776 |
48,958 - 3,776 |
|||
| 136,076 |
The Land and Buildings comprises the freehold house at 25 Broad Ha'penny, Farnham GU10 4TF
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 6 DEBTORS Prepayments and accrued income Prepayments (Lee Abbey) Tax Recovery (Gift Aid) Other Debtors 7 LIABILITIES 7a Amounts falling due in one year Creditors 7b Vicar's Discretionary Fund 7c Deferred Income Deferred Magazine Subscription Deferred Advertising Income Deferred Little Fishes Deposits Deferred Wedding Income 8 CHARITABLE GIVING Local and National FCCT International |
£ £ 1,500 8,617 - 10,117 4,083 1,705 135 491 - - 626 6,414 1,500 - 1,500 - - 1,500 2019 |
£ £ 1,500 5,505 512 7,517 6,465 1,455 - 340 250 1,351 1,941 9,861 - - - - - - 2020 |
£ £ 1,500 5,505 512 7,517 6,465 1,455 - 340 250 1,351 1,941 9,861 - - - - - - 2020 |
|---|---|---|---|
| 135 491 - - |
- 340 250 1,351 |
||
| 6,465 1,455 1,941 |
|||
| 1,500 - - |
- - - |
||
| 9,861 | |||
| - - |
|||
| - |
2020 Creditors in 7a includes £114.15 of PCC cheques that were uncashed at year end. This approach, with 'Cash at bank' in the Balance Sheet showing bank statement balances, was used because the accounting system does not hold separate 'book' values.
PAROCHIAL CHURCH COUNCIL OF ST JAMES' ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
9 LITTLE FISHES NURSERY SCHOOL
| INCOME Fees Deposit Outings Activities for generating funds CJRS (Furlough scheme) payments Other Total Income EXPENDITURE Staff Costs & Expenses Rent Insurance Stationery & Materials Food Equipment Training Outings Merchandising Costs Miscellaneous Total Expenditure Net Income/Expenditure |
£ £ 100,332 550 378 664 - - 101,924 71,165 - 1,119 1,487 516 1,194 900 464 376 839 78,060 23,865 2019 |
£ £ 101,892 included above 131 238 2,168 948 105,376 73,166 - 1,183 1,349 394 357 538 204 219 494 77,904 27,472 2020 |
£ £ 101,892 included above 131 238 2,168 948 105,376 73,166 - 1,183 1,349 394 357 538 204 219 494 77,904 27,472 2020 |
|---|---|---|---|
| 71,165 - 1,119 1,487 516 1,194 900 464 376 839 |
73,166 - 1,183 1,349 394 357 538 204 219 494 |
||
| 27,472 |
These financial statements do not include any crosscharge to Little Fishes for rent and utilities costs.
Independent Examiner's Report to the members/trustees of St James’ Church Rowledge Parochial Church Council
I report on the accounts for the year ended 31st December 2020 which are set out in the ‘Financial Review’ and ‘Financial Statements’ sections of this Annual Report.
Respective responsibilities of the Trustees and Independent Examiner
As trustees of the charity, the members of the PCC are responsible for the preparation of the accounts. They consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to
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Examine the accounts under section 145 of the 2011 Act;
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To follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the 2011 Act); and
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To state whether particular matters have come to my attention.
Basis of Independent Examiner's Statement
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent Examiner's Statement
Since the gross income for the year exceeds the amount provided in section 145(3) of the 2011 Act, I confirm that I am qualified to act as an Independent Examiner under the provisions of that section of the Act and that my qualification is as shown below.
In connection with my examination, no matter has come to my attention:
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which gives me reasonable cause to believe that in any material respect the requirements
- to keep accounting records in accordance with section 130 of the 2011 Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
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have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Peter Handscomb FCA
23 March 2021