**1 |** P a g e ## **HOLY TRINITY CHURCH BRAMLEY PAROCHIAL CHURCH COUNCIL Registered Charity No. 1128620** ## **ANNUAL REPORT** ## **and** ## **FINANCIAL STATEMENTS** ## **For the Year Ended 31 December 2020** **Incumbent** **Vacancy - 1.1.20 to 23.4.20** **Revd. Andy Davis from 23.4.20** **Bankers** **Lloyds TSB 147 High Street Guildford GU1 3AG** **Independent Examiner** **Colin Holloway Tanhurst High Street Bramley GU5 0HS** 1 | P a g e **2 |** P a g e ## **HOLY TRINITY CHURCH, BRAMLEY PAROCHIAL CHURCH COUNCIL ANNUAL REPORT FOR 2020** ## **Administrative Information** Holy Trinity Church is situated in Bramley High Street. It is part of the Diocese of Guildford within the Church of England. The correspondence address is: Parish Office, Holy Trinity Church, High Street, Bramley GU5 0HD. ## **GOVERNANCE** ## **PCC Membership for year 2020** ## **Incumbent** Vacancy to 23[rd] April 2020 From 23.4.20 Revd. Andy Davis ## **Wardens** Mrs Monica Snelling Mrs Suzanne Oldrey ## **Representatives on the Deanery Synod** Mrs Barbara Mintz Mr Richard Gates ## **Elected Members** Mrs Nina Deal Mr Alan Deal (to 4.10.20) Mrs Patti Hassell Mrs Jill Mussett Mrs Gertrude Seaborne (to 4.10.20) Mr John Hall (to 23.4.20) Mr Peter Williams ## **Structure, Governance and Management** The method of appointment of PCC members is set out in the Church Representation Rules. All church attendees are encouraged to register on the Church Electoral Roll and stand for election to the PCC. ## **Objectives and Activities** The PCC has the responsibility of co-operating with the Incumbent in promoting in the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for all the Church buildings, and 7 Park Drive 2 | P a g e **3 |** P a g e ## **Public Benefit** The PCC, as Trustees, have had regard to the Charity Commission’s public benefit guidance. Holy Trinity promotes the advancement of religion for the public benefit by the provision of regular church services and other activities open to all and contributing to the spiritual and moral education of both adults and children. The church was open daily, other than when proscribed by Government, to all for private contemplation and prayer. The Parish room was available for church use and for the community, other than when proscribed by Government. ## **Church Attendance** There were 74 Parishioners on the Church Electoral Roll at the end of 2020, of whom 12 are not resident within the Parish. The average usual Sunday attendance was 30 adults, which includes from March those who attended virtually by Zoom. These figures do not include boarding pupils of St Catherine’s School, who attended in term time until March. ## **PCC activity** The PCC met 6 times with an average attendance of 85%. Sub-Committees met between meetings and reported to the next PCC meeting. Other than in January, February and March, meetings were held virtually by Zoom The PCC is delighted to welcome Revd. Andy Davis as Priest-in-charge from April 23[rd] and is also very grateful for the assistance of the Rev Graham Smith throughout the year and visiting clergy for their help during the January to April vacancy. ## **FINANCIAL REVIEW** In the April 2019 Report the Treasurer wrote “ the future appears challenging”. Little did he know then how true that would be. Nevertheless from a financial viewpoint 2020, although posting **a deficit of £11,259** on the **General Fund** (GF) (including a loss of £1,656 on investments held in the reserves of the Fund), was better than expected. Clearly, with many services attended remotely and with few weddings or funerals, casual collections and fees suffered as did use of the Parish room. However, thanks to continued generous regular giving, core General fund (unrestricted) income held up well and expenditure was down following savings commenced in 2019. Dividends on investments in Endowment Funds (Restricted) income also held up well and funds for routine maintenance are available. The General Fund reserve now stands at £30,704. The annual revaluation of investments saw the value decrease by £15,404 of which £1,656 was in the General fund. (2019 saw an increase of £88,556, all but £2,768 of which being in endowment funds). In addition to the GF reserve there are a number of Designated funds totalling £17,121 (2019 £17,783), of which the Families Fund at £12,376 is by far the largest. Designated funds may be re-designated for general use by the PCC if necessary. The PCC had, in 2017, decided that a Stewardship Campaign would take place in 2018 to correct underlying deficit situation, which is not expected to improve based on the current level of pledged giving. However it was decided that to have a campaign during an absence and a Vacancy would not be appropriate so the PCC 3 | P a g e **4 |** P a g e awaited the appointment of a new Incumbent before following up on this decision. The campaign will include an emphasis on the importance of legacies. Unfortunately the Covid 19 situation has again postponed consideration of this. Support of the Parish Giving Scheme was maintained with the majority of donors opting for an annual inflationary increase in their donations. This is much appreciated. Those generous donors with fixed standing orders or who use the weekly envelopes scheme are encouraged to switch to the PGS scheme, which improves cash flow and reduces administrative work considerably. The analysis of income and expenditure which is a later part of this report shows some ups and downs, but no major surprises. As noted above, most forms of regular giving have held up, but there are some departures which will be needed to be factored in in 2021. The annual plant sale by courtesy of Mr and Mrs Campbell provided its usual excellent result (£1,085) despite being held under lockdown circumstances. Rent of 7 Park Drive was fully paid, despite some sad and difficult circumstances. Expenses were kept largely under control, with savings on Parish Share (and some help from the Diocese), PA’s salary, energy use and insurance. A decrease in maintenance (all from restricted funds) reflected the end of most of the Quinquennial work. The only one well-supported concert could be held and therefore outward giving has declined markedly. The balance sheet shows an apparently healthy level of total funds at £1,090,054 (2019 £1,115,005). It must be noted however that, unless the Diocese and the Charity Commission (supported by the PCC) agree otherwise, we are entitled to only the income from our endowment funds, and that only for the restricted purposes of the individual endowment funds, except for the Buckingham Trust where the investments may be applied to improvements in the property. Three main funds make up the bulk of the endowment assets – Buckingham (£444,407) which includes the value of 7 Park Drive at £400,000, Maintenance Endowment Fund (£431,718) and Hamilton memorial (£95,747). Other endowment funds total £21,663. Endowment funds total between them £993,534. The income from the Hamilton Memorial, Maintenance Endowment Fund, and various small endowment funds are restricted to particular uses as determined in the endowments. Various other Funds, including Bells, also have their use restricted to particular purposes, but are not endowment funds. Details of all investments, which are regularly reviewed but not changed in 2020, are shown in the attached balance sheet. Deposit Account interest rates are still derisory, affecting all funds. £41,967 remains invested in short term (< 1 year) bonds with Lloyds Bank, which also enables free banking, and we hold a deposit of £39,554, with the C of E Central Board of Finance Deposit account (CCLA managed). Looking ahead, challenging financial circumstances remain in 2021. Parish Share will increase now we have a full-time Incumbent and certainly for the early part of the year, income will remain reduced. There are no obvious savings on expenses unless activities we very much value are restricted. 4 | P a g e **5 |** P a g e **The need for a full review of our situation, and potential remedies remains. General Fund reserves will cover us for 2021, but not much longer beyond that.** ## **Reserves Policies** The reserves indicated as Unrestricted in the Balance Sheet are for the general purposes and mission of the PCC and are also held to provide for contingencies in the running costs. Restricted Reserves held in restricted funds are for the purposes of those funds only. Designated Reserves held in designated funds may be redesignated, including to general purposes, upon resolution of the PCC. ## **Other Policies** The PCC or its committees have reviewed policies relating to Child Protection, Safeguarding and Health and Safety. The PCC is insured with the Ecclesiastical Insurance Co. under the Diocesan group insurance scheme. ## **GENERAL NOTES ON ACCOUNTING POLICY FOR THE YEAR ENDED 31 DECEMBER 2020** The PCC has various related trusts, notes on which are included in these Notes _._ The trustees of the Hamilton Memorial Trust are the Vicar and Churchwardens and the trustees of the remaining trusts are generally collectively the members of the PCC. The PCC is consulted on and approves the activities of all the trusts, receiving advice from the Finance Committee comprising in 2020 Revd. Andy Davis (from 23[rd] April 2020, the Churchwardens, Treasurer, and two co-opted members: John Hall (until April 2020) and Murray Campbell. ## **Accounting Policies** The Accounts have been prepared in accordance with the Charities Act 2011, Church Accounting Regulations 2006 together with applicable accounting standards and the Charities Standards of Accounting Practice (SORP 2015). The financial statements have been prepared on the basis of receipts and payments and under the historical cost convention except for the valuation of investment assets and liabilities which are shown at market value at 31 December 2020 (or nearest trading date prior to that). The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of informal gatherings of church members. ## **Funds** **Endowment funds** are funds, the capital of which must be maintained and therefore in principle is not available to the PCC (in the case of the Hamilton Memorial Fund and the Maintenance Endowment Fund, up to 2/3 of the capital may be borrowed, but must be repaid before any income can be used). Income arising from an endowment fund may be used either as restricted or unrestricted funds depending upon the purpose for which the endowment was established. Investments for 5 | P a g e **6 |** P a g e endowment funds are held by Guildford Diocese Central Board of Finance as Custodian Trustee, however income from those investments is paid directly to the PCC. Investments may be changed following a recommendation from the Finance committee and a resolution from the PCC. **Restricted funds** represent (a) income from trusts or endowments, which may be expended only on those restricted objects in the terms of the trust or bequest and (b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object and any balance remaining unspent at the end of each year is carried forward as a balance on that fund. **Designated funds** are unrestricted funds nominally set aside for specific purposes. Designations can be changed by the PCC. **Unrestricted funds** are general funds, which can be used for PCC ordinary purposes. **Incoming Resources:** Planned giving, collections and donations are recognised when received. Tax refunds are recognised when received and claims are made quarterly, except for the Parish Giving scheme where Gift Aid is received monthly. Grants and legacies are accounted for when the PCC receives the amounts due. Dividends and interest are accountable when received. All other income is recognised when it is received. **Resources Expended:** Grants and donations are accounted for when paid over. The Diocesan parish share is accounted for when paid. All other expenditure is recognised when it is paid. **Fixed Assets** Consecrated and benefice property is not included in the accounts [Charities Act 2011]. Moveable church furnishings are held by the Vicar and Churchwardens on special trust for the PCC. They require a faculty for disposal and are inalienable property, listed in the church’s inventory, which can be inspected at any reasonable time. For anything acquired prior to 2000 there is insufficient cost information available and therefore such assets are not valued in the financial statements. The Value of all Tangible Fixed Assets purchased has been written off. Based upon the sale of a similar property in 2015 (9 Park Drive), the market value of 7 Park Drive (after costs) was conservatively assessed as £400,000 in 2016 and it is now reflected in the accounts at that value. ## **PCC Expenses** During the year, no material expenses or other benefits were paid to PCC members. Signed On behalf of the PCC Dated _._ 6 | P a g e **7 |** P a g e ## **Independent Examiner's Report to the PCC** This report on the accounts of the PCC for the year ended 31 December 2019, being pages 6 to 11 following, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 (the Regulations) and s.145 of the Charities Act 2011(the Act). As the members of the PCC you are responsible for the preparation of the accounts; you consider that the audit requirements of s.144(2) of the Act do not apply. It is my responsibility to examine the accounts and issue this report on these accounts in accordance with s.145 of the Act and the Regulations. I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)9b) of the Act. ## **Independent Examiner’s statement** I have completed my examination. I confirm no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. Accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. The accounts do not accord with those records; or 3. The accounts do not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a “true and fair view” which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Signed Name Date 7 | P a g e **8 |** P a g e ## **Balance Sheet as at 31[st] December 2020** ||**As at 31/12/2020**|**As at 31/12/2020**|**As at 31/12/2019**| |---|---|---|---| |||£|£| |**Fixed Assets**|||| |Tangible Assets (7 Park Drive)
||400,000|400,000| |Investments (Note 1)
||587,236|602,640| ||_______||_______| ||**987,236**
||**1,002,640**
| |**Current assets**|||| |Cash at Bank|and in hand (Note 2)|102,818
|112,365
| |||**102,818**
|**112,365**| |Net current assets less liabilities
||102,818
|112,365
| |**Total net assets less liabilities** **1,090,054**
|||**1,115,005**
| |**Represented by:-**|||| |**Unrestricted**|General Fund
|30,704|41,970| |**Designated**|Toddlers Fund|201|201| ||Bramley Music|4,544|3,777| ||Vicarage Refurbishment -||1,509| ||Families
|12,376|12,295| |**Restricted**|Bells|8,660|9,043| |(Note 3)|Fabric|1,191|1,098| ||Hamilton Memorial|13,754|17,947| ||Maintenance End’t|23,951|15,360| ||Pim Trust|952|783| ||Other small funds|185|741| |**Endowment**|Buckingham
|444,407|445,131| ||Hamilton Memorial|95,747|91,539| ||Maintenance End’t|431,718|451,584| ||Pim Trust|8,001|9,140| ||Other small funds|4,914|4,648| ||Endow’t Gen Purpose|
8,749|8,239| **1,090,054 1,115,005** 8 | P a g e **9 |** P a g e |**Note**|**1**|
CBF income 368,730|345,817| |---|---|---|---| |||M&G Charibond 33,064
|32,687| |||M&G Charifund 184,489|223,216| Value at: **31.12.20** £ **587,236** 31.12.19 £602,640 **Full titles** : **The CBF** Church of England Investment Fund – Income shares (CCLA managed) **Charibond** - Charities Fixed Interest Common Investment Fund (Charibond) (M&G managed) **Charifund** The Equities Investment Fund for Charities (Charifund) (M&G managed) **Black Rock Charities** UK Bond (was called Charinco) ## **Note 2** |Lloyds Bank Deposit Bonds <1year
|41,968| |---|---| |CBF CCLA Deposit Account
|39,554| |Cash at Bank|21,115| |Cash in hand|181| ## Total **£102,818** Lloyds Bank current account bank statement at 31.12.20: £21,115, **Note 3** Restricted funds with the same name as endowment funds represent the accumulated unspent income from the associated endowments. Agreed by the Parochial Church Council on and signed on its behalf by .......................................................................(Chairman) Date 9 | P a g e