2021-12-31-accounts - The Parochial Church Council Of The Ecclesiastical Parish Of Rowledge

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Annual Report 2022

This is an extract from the full 2022 Annual Report which covers 2021 activity. This extract contains just the audited 2021 Financial Report and Accounts.

Financial Review 2021

1. Overview

The church funds were in credit throughout 2021 and at the end of the year.

Total Income for all funds was £265,911, a rise of £6,052 (2%) relative to 2020, whilst Total Expenditure was £265,244, a £33,122 (14%) increase, resulting in a £667 surplus - much below the £27,737 surplus in 2020.

The total of all Voluntary Giving (including Gift Aid and Legacies) rose by £3k to £140,021, though approximately £33k of this was one-off giving – including £5k in legacies. Underlying this giving is a base of regular/planned giving totalling about £95k (including gift aid), which grew slightly.

Fundraising activity resumed in 2021, contributing to the increase in income.

One of the most significant features of the 2021 results is the £33k increase in total expenditure. The major reason was a £27k rise in total cost of the Little Fishes pre-school, mainly staff costs. Some of this is oneoff, associated with the transition to a new manager, cost of temporary staff cover during Covid sickness absence, and cost of implementing the new rigorous requirements of the Early Years Foundation Stage statutory framework. However, the EYFS changes will lead to higher costs in future years as well.

Other cost factors included:

A £15k increase in Church Repairs, Maintenance & Improvements to cover roof repairs recommended in the last Quinquennial Inspection report, and upgrade of the church lighting system.
A £6k increase in Parish Share paid to Guildford Diocese – this was partly an increase in underlying fee, partly because a rebate was received in 2020.
The increases were partially offset by lower administration cost (because no staff cost and a higher cross charge of printer costs out of administration to the magazine), lower spend on the house (25 Broad Ha’penny), and the cessation of depreciation charge on the house.

2. 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 and a reserve for redecoration of the vicarage.

The level of unrestricted net current assets/liabilities (£128,612) at the end of 2021 was slightly less than six months’ expenditure (£132,622); and those assets include those notionally allocated to specific unrestricted funds.

3. Movement in Reserves

During 2021 total funds increased from £266,922 to £267,589. Of this amount, £2,900 is in newly-created Restricted Fund and £136,076 is tied up in the book value of the house (25 Broad Ha’penny), which is used as accommodation for the Youth and Children’s Minister.

Until 31/12/20 the house had been depreciated at 2% per annum (£3,776) but in 2021 the PCC decided to stop further depreciation and hold it in the accounts at the 31/12/20 book value because its market value is significantly higher.

4. 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. Although some repair and improvement works were carried out in 2021, these were paid from the General Fund (with the help of a grant from The Dyers Company), and nothing from the CFS Fund. So at the end of 2021 the Fund stood unchanged at £30,000.

4.2 The Little Fishes Solvency Fund

This is to ensure PCC funds are available to sustain operation of the preschool and is normally set to a value equivalent to six months’ of LF expenditure. To achieve this, £13,271 was transferred from the General Fund to the LF Solvency Fund at the end of 2021 to increase it to £52,223 (50% of 2021 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 2021. The very small increase over the year came from interest earned on the cash on one of the deposit accounts. The balance is £24,853 at end-2021.

4.5 The House Reserve

This represents the accounting value of the house in Broad Ha’penny - £136,076 at end of 2021. The market value is likely to be significantly higher.

4.6 The Vicar’s Discretionary Fund (2)

This was set up to provide funds for the Vicar to use at his discretion if a compelling charitable need arises. The PCC agreed in November 2021 to transfer £1000 to this from the General Fund. This is additional to what is now referred to as the Vicar’s Discretionary Fund (1) which held £1,042 at 31/12/21. VDF1 will be used and exhausted first. (VDFs 1&2 are similar in terms of availability for use by the vicar, but totally different in accounting terms – VDF1 is held as a Liability on the balance sheet.)

4.7 The Bursary Fund (Restricted)

This fund was set up in 2021 to hold donations given to help people attend the St James’ Lee Abbey weekend in April/May 2022. It held £400 as at 31/12/21. It may be used in future for similar purposes, with distinct sections for different needs if appropriate.

4.8 The Audio-Visual & IT Fund (Restricted)

This fund was set up in 2021 to hold donations from individuals and a grant from Binsted Parish Council towards a new AV system for the church. It held £2,500 as at 31/12/21.

4.9 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 balance has dropped sharply in 2021 from £34,054 to £17,536 as at 31/12/21 because of a £2,233 deficit on the General Fund Income & Expenditure account and the transfers to other Funds, particularly the £13,271 top-up of the LF Fund.

5. Funding Sources and use of Funds

49% of income came from voluntary giving (including Gift Aid but excluding Donations/Grants and Legacies) and a further 41% came from Little Fishes.

31% of total expenditure was for the Parish Share Fee which is paid to the Diocese, and 39% was spent on Little Fishes costs; with the balance used to run the church and develop its outreach to the village, particularly in ministry to young people.

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.

6. The Coming Year

The 2021 Income and Expenditure account yielded a very small overall surplus only because approx. £33k of one-off giving, grants and legacies was received, overcoming a large increase in the Little Fishes cost base.

The underlying financial situation is that regular, predictable expenditure continues to exceed predictable income so the 2022 Budget shows a significant deficit: and that is while still budgeting for little beyond essential expenditure.

Andrew Fewster - PCC Treasurer

Appendix A End of Year Accounts PAROCHIAL CHURCH COUNCIL OF STJAMES'ROWLEDGE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 Ilotes 2021 2020 R•stii¢tsd Total INCOME Voluntary income Fundraising income Church activities Income from investments Trading Income lPrts*ChL & nw'nè) Total Income 137.121 4.101 7,500 41 114.247 263.011 2.900 140,021 4,101 7,500 41 114,247 2.900 265.911 137.311 644 7,459 333 114,110 259.858 2d EXPENDITURE Church activities Fundraising costs Trading Costs Total Expenditure 155.969 764 108,511 265.244 155,969 764 108,511 265,244 151.792 116 80,213 232,122 NET INCOMEI(EXP.) befoY• Investment galns NET GAINS ON INVESTMENTS NET INCOMEI(EXPENDITURE) (2,233) 2,900 667 27.737 {2,233> 2,900 667 27.737 NET MOVEMENTIN FUNDS 10 Opening Balanco Transfers between fund types Movèment Closing Balanco 266.922 266,922 239.185 (2,233) 264,689 2,9CKI 667 2,900 267,589 27,737 266,922 All values a sho% as as the cutste ££.pp rounded lo tlJ& nèarest£l. Tot81s may Ih8relor8 8PP8ar noi to add up exadly b8cause olthe roundiThJ. 33

PAROCHIAL CHURCH COUNCIL OF STJAMES'ROWLEDGE BALANCE SHEET AT 31 DECEMBER 2021 Notes 2021 2020 Restrlct•d Totsl Total FIXED ASSETS Tangible 136,076 136.076 136,076 CURRENT ASSETS Debtors and Prepayments Short term deposits Cash at bank and in hand 1,801 77,716 58,448 137,965 1,801 77,716 2,900 61,348 2,900 140,865 7,517 77,675 55,514 140,706 UABILITIES Creditors: amnts f81ing incth 7a 3,454 3,454 6,465 Vicarfs Discretionary Fund (1) Deferred Income 7b 7c 1,042 4,856 9.352 1,042 4,856 9,352 1,455 1,941 9,861 NET CURRENT ASSETSILIABILITIES 128,612 2,900 131,512 130,846 TOTAL ASSETS LESS CURR. UABS 264,689 2,900 267,589 266,922 Creditors: amwnts faIg th 8ft8r on? yaar TOTAL NET ASSETS 264,689 2,900 267,589 266,922 PARISH FUNDS Unrestricted Church Fabric Sinking Fund Little Fishes Solvency Fund Vicarage Redecoration Fund R Harvey Organ Fund Vicar's DISCtiOnary Fund (2) House Reserve General Fund Restrlcted Bursary Fund AV & IT Fund 30,000 52,223 3,000 24,853 1,000 136,076 17,536 30,000 52,223 3.000 24,853 1,000 136.076 17,536 30,000 38,952 3,000 24,840 136,076 34,054 400 2.500 4Crf) 2.500 TOTAL RESERVES 264,689 2.900 267.589 266,922 34

PAROCHIAL CHURCH COUNCIL OF ST JAMES'ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEAIBER 2021 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 goveming 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, Accounb'ng and Reporting by Charities {SORP(FRS102)). The financial statements have been prepared under the historical cost convention. The book value of fixed assets will therefore not necessarily reflect their market value. Indeed the market value of the house 25 Broad Ha'penny is likely to be significantly higher than the book value. The financial statements indude 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 infomal 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. 35

PAROCHIAL CHURCH COUNCIL OF STJAAES'ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2Q21 Notes 2021 2020 Total 2 INCOME 2a VOLUNTARY GMNG Giving and Gift-AhJ Giving Gfft-Aid Tax Recovered 103.922 24,270 128.12 1.220 105.142 24.450 1.400 129.592 87.101 20.678 107.779 Donations and Grants Legac$ 3,929 5,000 8.929 5,429 s,rxio 10.429 8,027 21,505 29,532 137,121 2,900 140,021 137,311 2b ACTIVITIES FOR GENERATING FUNDS Rowledge Village Fawe 1,283 '150. fundraisi 2.189 Photoioumal sales Easyfundraising Christmas Tree Festtval (2019) Christmas Card Sales Christingle Other FundraisiTrJ 1,283 2.189 150 72 43 345 102 102 455 60 12 4.101 455 12 4.101 35 2c CHURCH AcnvmES Fees for We(klings and Funern Youth Activity fees CJRS (FurIgh) panents. excl LF Miscellaneous Inc(¥ne 6.543 69) 6.543 3.476 330 3.582 71 7.460 266 7,500 2d INCOME FROM INVESTMENTS Interest 41 41 333 2• TRADING INCOME Litue Fishes Inc4)rne Fees & Depostts Merchandising Outings CJRS IFurlowh) payments Other 105.034 1.170 438 368 747 107.756 105.034 1.170 101.892 238 131 2.168 948 105.376 747 107.756 Magazine Incc¥ne Subscriptions Advertisements 1.474 5.017 6.491 1.474 5.017 6.491 3.295 5.439 8.734 114.247 114.247 114.110 TOTAL INCOME 263,011 2,900 265,911 259,858 36

PAROCHIAL CMURCH COUNCIL OF STJAAIES'ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EfiDED 37 DECEMBER 2021 Thls Expendllurn Is allfor the GenwalFund- there was no expendltyrn In 0th8rfunds Note3 2021 2020 3 EXPENDITURE 3a CHURCH ACTIVITIES General Expendilure Mus Heat Light and Water Broadband aThJ Tdeph)ne Insurance Printiro StatKJnery Churchyard and Drive Church Repairs and Maintenance Semce ¢x)sts 155 4,372 977 696 4.¢X)3 8.257 18.859 711 1,680 5,721 8,177 3.998 1,348 37.857 26.807 Parochial Exp•ns•s Administration Vicarfs Costs MissiL. Ministy Costs Vicarage Costs 8,839 427 282 1,407 1.277 1.237 5,896 10.955 Youth Costs 26,418 28,175 House Costs IhK1£3mdewuJ¥yx kn 2020ftyTr 1.645 8.759 Guildford Dioc•8an Parish Shar• Fo• 82.761 77. Mlsslons and Charltles 1,391 155.969 151.792 3b FUND RAISING COSTS Rowledge Village Fayre costs Christmas cards for sa 469 295 116 764 116 3¢ TRADING COSTS Little Fishes Magazlne Producllon Costs 104,446 4.C65 77.9)4 108.511 80,213 TOTAL COSTS 265,244 232,122 t•&)1 appwN12021. £i.t93 Iwh6r(E7tX7 chL1. £4931trLitUo Fisls) IKr20 37

PAROCHIAL CHURCH COUNCIL OF STJAAIES'ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEAIBER 2021 2021 2020 4a STAFF COSTS Wages and Salaries (inc Nl) Church Staff Lithe Fishes Staff 22,010 94,291 116.301 28,836 73.166 102,002 During the year the PCC employed a Youth and Children's Minister, It also employed staff to run the Little Fishes prè-school. During 2021 the PCC received £367.85 from HMRC as CoronaviTUS Job Retention Scheme payments. all for furloughed LF staff. Thi5 compa$ è total 01£5.750.45 GJRSpaym*nts 11> 2020 Ir2.168 forLF stèff. r3.582 forAdmin staffj. These payments were processed in the accounts as income (see Notes 2e and 9) so staff costs above are the gross costs. not net of CJRS. 4b PAYMENTS TO PCC MEMBERS Thèrè were no paymènts to PCC m8mb8rs during the year. 5 FIXED ASSETS Land and Buildings 2021 2020 Actual Cost Starting Balan Disposal Additions at Cost Closing Balance 188,810 188.810 188.810 188,810 Depreclatlon starting Balan Wiihdrawn on DistK)sal Charge for the Year Closing Balance 52.734 48.958 3,776 52.734 52.734 Closing Written Down Value 136.076 136,076 The L8nd and BuikSing$ o)mpn$g$ the fr8ehfld house at 25 Bm8d H8P8nny, F8mhgm Guto 47F The PCC deciled in 2021 not to charye depreciat after31/12120 because the written down value is w611 balow the cuttY8nf math8t valug. 38

PAROCHIAL CHURCH COUNCIL OFSTJAMES'ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EI4DED 31 DECEAIBER 2021 2021 2020 6 DEBTORS Prepaymènts and accruad Incom• Prepaym8nts (to Lee Abbey) HMRC (Gift Aid claim) Other Debtors 1,500 301 1,500 5,505 512 1,801 7.517 7 LIABILITIES 7a Amounts falllng due In one year Creditors - accounts payable 3,454 6,465 7b Vlcarfs Dlscretionary Fund (1) 1,042 1,455 7c Deferred Income Deferred Magazine Subs(xiption 110 Deferr8d Adv8rtising Incom8 1,615 Deferr8d Ltttle Fish8s Deposits 250 Deferred Wedding Income 681 Deposits paid for Lee Abbey 2022 ¥ken1 2.200 340 250 1.351 4.856 9,352 1,941 9.861 8 CHARITABLE GIVING Local and National FCCT Grassroots The Children's Society 1,200 131 60 1.391 Internatlonal 1,391 39

PAROCHIAL CHURCH COUIICIL OFSTJAAIES'ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR E14DED 31 DECEMBER 2021 9 LrrrLE FISHES NURSERY SCHOOL 2021 2020 INCOME Fees & Deposits Outings Actimties for generating funds CJRS {Fudough scheme) payTnents Other Total Income 105.034 438 1.170 368 747 101,892 131 238 2,168 948 107,756 105,376 EXPENDITURE Staff Costs & Expenses Rent Insurance Stationery & Materials Food Equipment Training Outings Merchandising Costs Miscellaneous Total Expendituro 94.291 73,166 1.183 1,349 394 357 538 204 219 494 2.150 642 2.362 1.301 379 1.097 1.741 104,446 77,904 Net IncomelExpendlture 3,310 27,472 Th8se finan1 5tat8ffnls anycmssdwye to Lrtll&F lorTrntanduWitses costs. 8ecau5e of a charw to payry insura6 rwthlyratrjerlhan an11 the l/fKkl 2021 rpsldts &lJow insur8nce cosl fviust ITr. 2021 LF been £493 hWrfS12tlk8 ofthe I1oreoallyl¥rn 2021. 40

PAROCHIAL CHURCH COUNCIL OF STJAAIES'ROWLEDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YE4R ENDED 31 DECEAIBER 2021 10 FUND MOVEMENT SUMMARY 2021 Fund Name op1[j Balanc8 Income Ejpendthre Furwj Tfansfers Closing Balance 111r2021 3111212021 30,000 52,223 3,000 24,853 1,000 136,076 17,536 400 2,500 267,589 Church Fabric Sinking FurKI Little Fishes Solvency Fund Vicarage Redecoration Fund R Harvey Organ Fund Vicarfs Discretionary Fund (2) House Reserve General Bursary Fund AV and IT Fund TOTAL 38.952 13,271 24.840 14 1.000 136,076 34.054 263,011 400 265.244 -14,284 266,922 265,911 265,244

Appendix B

2021 Independent Examiner’s Report

Church Lane, Rowledge, Farnham, Surrey, GU10 4EN.

stjamesrowledge.org.uk admin@stjamesrowledge.or.uk 01252 792402