## **ROWLEDGE PAROCHIAL CHURCH COUNCIL FINANCIAL REVIEW**
## **2020**
## **OVERVIEW**
1. 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:
- 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.
- 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**
2. 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**
3. 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**
- 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.
- 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).
- 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.
- 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
- 4.5 **The House Reserve.** This represents the accounting value of the house in Broad Ha’penny - £136,076 at end-2020.
- 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.
- 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**
5. 41% of income came from voluntary giving _(incl Gift Aid but excl Donations and Legacies)_ and a further 41% came from Little Fishes.
- 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.
- 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**
6. 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||
||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||
||-
-
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
- Examine the accounts under section 145 of the 2011 Act;
- 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
- 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:
1. 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
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
- have not been met; or
2. 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