**Charity Number 1128707**
**ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PHILIP, MARGATE**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
|**CONTENTS**|**Page**|
|---|---|
|Parochial Church Council’s report|2|
|Notes to the Accounts|6|
|Statement of Assets and Liabilities|7|
|Independent Examiner’s report|8|
|Financial Statements|9|
|Restricted Fund balances|12|
## **THE REPORT OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PHILIP, MARGATE**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Administrative information**
St Philip’s Church is situated in the Palm Bay Estate, Margate. It is part of the Diocese of Canterbury within the Church of England. The correspondence address is:
St Philip’s Church Summerfield Road Margate Kent CT9 3JJ Telephone 01843 231825 E Mail stphilipspalmbay@btconnect.com Web www.achurchnearyou.com/church/12060 Charity Commission registration number 1128707.
## **Officers and Professional Advisers**
Members of the Parochial Church Council (PCC) are either ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. The PCC members are also the trustees.
PCC members who have served from 1 January 2020 until the date of this report was approved are:
Vicar Rev S. Gay Lay Reader Miss H. Rogers Wardens Mr. D. Amor (Treasurer) Mr. G. Tully (until APCM 19/10/20) Mr K. Locking (from APCM 19/10/20) Secretary Rev. S. Gay Deanery Synod Representatives Mr S. Vary(until APCM 19/10/20) Mrs. B. Uttley (until APCM 19/10/20) Mrs L. Oakley (from APCM 19/10/20 Elected Members Miss L. Carew-Jones Mrs. J. Rampall Mr. C. Woodcock Mrs S. Gooch (until 13/08/20) Mrs D. Tully (from APCM 19/10/20) Miss S. Woolley (from APCM 19/10/20) Mr A. Leal(from APCM 19/10/20) Standing Committee Rev S. Gay Mr. D. Amor
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Miss H. Rogers Independent Examiner Mr. Adrian Tasker 10 Chartwell Grove Sittingbourne ME10 1XD Bankers Lloyds TSB Bank plc Charities Aid Foundation Bank HSBC Bank
## **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 Electoral Roll and stand for election to the PCC. The PCC is governed by two Church of England Measures; the “Parochial Church Council (Powers) Measure 1956 as amended” and the “Church Representation Rules (contained in Schedule 3 to the Synodical Government) Measure 1969 as amended”.
## **Statement of the PCC's Responsibilities**
The PCC is responsible for all parish finances, its management and control, including the appointment of a treasurer.
Charity law requires the PCC as trustees of the church to prepare an annual report and financial statements that give a true and fair view of the church’s financial activities during the year and of its financial position at the end of the year. The PCC is also required to ensure that these are subjected to an annual independent examination and to present these to the APCM in accordance with the Church Representation Rules.
- The PCC is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the church and to enable it to ensure that the financial statements comply with the Charities Act 1993.
- The PCC is also responsible for safeguarding the assets of the church (other than the fabric and ornaments of the church for which the churchwardens have particular responsibility) and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- The members of the PCC confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the PCC’s aims and objectives and in planning future activities.
- PCC members were not reimbursed any travelling and subsistence allowance during the year.
## **Objectives and activities**
St Philip’s PCC has the responsibility of co-operating with the incumbent, the Revd Stuart Gay, in promoting the mission of the Church in the parish. It also has maintenance responsibilities for St Philip’s Church. Our aim is to bring people to a knowledge and love of God through Jesus Christ by proclaiming the Gospel in the parish of St. Philip, Margate, and beyond. We aim to do this by following the commandment of Jesus to go and make disciples of all nations, baptising them in the
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name of the Father and of the Son and of the Holy Spirit and teaching them to obey everything that Jesus has commanded.
## **Achievements and Performance**
## Worship and Prayer
We conduct weekly worship services and prayer meetings designed to include people from all walks of life. Our worship team meet regularly for fellowship and fortnightly worship evenings. Numbers are consistent but have been boosted by a weekly ‘Junior Church’. We have engaged with Diocesan initiatives on prayer and finance
## Pastoral Care
We now have an operative Pastoral Care team to co-ordinate visits/home communions. Our small groups also undertake to exercise pastoral care for their group members.
## Mission and Evangelism
We run a number of activities that are welcoming to all-comers as a potential ‘way in’ to the worshipping life of the church. We are committed to working with other churches in Thanet. We are currently meeting through the medium of ‘Zoom’ whilst the church building is closed due to Covid 19 restrictions and requirements.
## **Church attendance**
The electoral roll is currently 83 (2019: - 84). Sunday attendance fluctuates between around 80-90 adults and 20-30 children.
## **Reserves policy**
It is the PCC policy to maintain a balance on unrestricted funds, if possible, of £20,000 to cover any emergency repairs. This level would allow a period of time for an appeal for funds from the congregation and for the PCC to consider alternative financial strategies. This reserve is held separately in a bank Account at Lloyds.
## **Risk Management**
The PCC has considered and discussed the key risks facing the church, the controls in place to mitigate them and any action required. The PCC continues to review and develop the strategic direction of the church and considers how its exposure to risk changes as a result.
We have accepted the Diocesan and Ecclesiastical (EIG) recommendations to use the Smart Water system on our roof and other high value items. We have reviewed our Insurance levels, and consider them to be appropriate
## **Safeguarding**
The PCC takes the safeguarding of children and vulnerable adults seriously and adheres to National Church policy and guidance for best practice.
4
## **Financial review**
The accounts for 2020 have been prepared on a receipts and payments basis as recommended for the level of income generated at St Philip’s.
This has been a somewhat different and certainly a quiet year from a financial point of view. We began the year finishing off some repairs to our toilets and had to replace some of the outside lighting. The replacement of worn-out fixtures and fittings is now a major part of expenditure and given the age of the building the need for repairs or replacement is likely to grow. Some expenditure under this heading has been postponed because the Quinquennial review due to take place during 2020 did not take place.
Regrettably we remain unable to pay the requested Parish Share. During 2020 we were able to contribute approximately 75% of the requested sum. This means that the deficit had grown to just over £63,350 by the end of 2020 and is unlikely to be reduced in the near future. I anticipate it will continue to grow as we will be unable to meet the full share requested for 2021.
The Covid-19 virus has dominated much financial thinking around the country and indeed St Philip’s has been no exception to this. We have suffered a significant loss of income from our Sunday collections as we have not been able to take a collection since mid-March and accordingly have collected only 20% of what was given in 2019. On top of this we have not been able to open the building for lettings which forms a substantial part of our income. We are slightly behind in claiming back Income tax from HMRC which will arrive in the early part of 2021. Sadly, this year we also lost several members of our church family who had donated by Standing Order. In December 2019 there were 49 regular monthly donations but by December 2020 this had fallen to 40. As we move forward this will impact on our ability to both spread the good news of Jesus and pay our bills.
Obviously with the building being shut there have been some savings on our expenditure, with a significant drop in our electricity and cleaning bills. However, we have still had to fund much of our servicing and repairs even in an empty building. We have been able to claim back just over £5,000 from the Job Retention scheme funded by HMRC. Sadly, it is not a straightforward equation in that what we have been able to save and claim back has not matched what we have lost in regular income.
In order to facilitate cash deposits, the PCC decided towards the end of 2019 to open an account with the HSBC and I can confirm that this account is now open and in use although Internet banking is not yet available on this account.
Finally, with regard to Income Tax could I please remind you that you are obliged to notify me if your circumstances change to the extent that you are no longer required to pay tax. Quite simply, if you haven't paid the tax, I can't claim it back through the Gift Aid facility
5
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Accounting Policies**
The financial statements of the PCC have been prepared in accordance with the Church Accounting Regulations 2006 using the Receipts and Payments basis.
These accounts include all transactions and liabilities for which the PCC is responsible in law.
## **General Fund**
Represents the funds of the PCC that are not subject to any restrictions regarding their use.
## **Restricted and Designated Funds (R & D in the accounts)**
Restricted funds are those where the donor has requested their donation be used for a specific purpose. For example, setting money aside for evangelism or other activities connected with the church.
At present there are no restricted Funds
Designated Funds are those the PCC has decided to set aside monies for specific projects or items.
Currently there are 2 funds that are designated by the PCC for specific purposes.
## Repairs Fund
Represents amounts set aside specifically to help meet the costs of major repairs.
## Mission Fund
Represents amounts collected by the church to support the work of missionary, relief work and other similar organizations and individuals
6
## **STATEMENT OF ASSETS**
## **31 DECEMBER 2020**
## **CASH FUNDS AT 31 December 2020**
|Lloyds TSB
Current Acc
CAF Bank
Current Acc
HSBC Bank
Current Acc
TOTALS|Unrestricted
R & D
Total 2020
Total 2019
21775
0
21775
21595
23839
7749
31588
39264
1573
0
1573
0|
|---|---|
||47187
7749
54936
60859|
Approved by the PCC on 2021 and signed on their behalf by
Reverend Stuart Gay (PCC Chairman)
David Amor (PCC Treasurer)
7
## **INDEPENDENT EXAMINER'S REPORT TO THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PHILIP, MARGATE**
This report on the financial statements of the PCC for the year ended 31 December 2020, which are set out on pages 7 to 12, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 ("the regulations") and s.43 of the Charities Act 1993 ("the Act").
## **Respective responsibilities of the PCC and examiner**
As the members of the PCC you are responsible for the preparation of the financial statements; you consider that the audit requirement of the Regulations and s43 (2) of the Act does not apply. It is my responsibility to issue this report on those financial statements in accordance with the terms of the Regulations.
## **Basis of this report**
My examination was carried out in accordance with the General Directions given by the Charity Commission under section 43(7) (b) of the Act and to be found in the Church guidance, 2006 edition. That examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the financial statements and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently, I do not express an audit opinion on the view given by the accounts.
## **Independent examiners' statement**
In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that, in any material respect, the requirements
- (1) (a) to keep accounting records in accordance with section 41 of the Act; and
- (b) to prepare financial statements which accord with the accounting records and comply with the requirements of the Act, and the Regulations have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding
## **Adrian Tasker**
Date:
10 Chartwell Grove Sittingbourne
8
Kent ME10 1XD
## **ST PHILIP’S NORTHDOWN PARK MARGATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**RECEIPTS**
Planned giving
see note 1
Income tax recovered
HMRC – Job RS
Other voluntary receipts
see note 2
Receipts from Church
activities
see note3
Mission
see note 4
**TOTAL INCOME**
**PAYMENTS**
Church Activities
Parish Share
Church Activities
See note 5
Church Running Costs
see note 6
Church Building Cost
see note 7
Church Administration
See note 8
Ministry Costs
see note 9
Mission
See note
10
Professional Fees
**TOTAL PAYMENTS**
**TOTAL INCOME**
**TOTAL EXPENDITURE**
**Surplus/defcit**|Unrestrict
ed
R & D
Total
2020
Total 2019
48589
0
48589
47181
5192
0
5192
16687
5122
0
5122
0
9487
0
9487
15233
6699
0
66
99
17075
2184
0
2184
677|
|---|---|
||**77273**
**0**
**7727**
**3**
**96853**|
||56566
0
56566
55620
127
0
127
2733
12923
0
12923
16284
1871
816
2687
8652
6438
0
6438
6729
1072
0
1072
3213
4154
69
4223
3228
0
0
0
0|
||**83151**
**885**
**8403**
**6**
**96459**|
||77273
0
77273
96853
83151
885
840
36
96459|
||**-5878**
**-885**
**-6763**
**394**|
9
|**RECEIPTS**
**Planned Giving**
Note
1
SO Donations Gift Aid
SO Donations
Other
**TOTAL**
**Other voluntary receipts**
note
2
Service Collections
Collection Boxes
Legacies
Donations
Everyclick
**TOTAL**
**Receipts from Church**
**activities**
note
3
Rent
Service Fees
Photocopying/Advertising
Holiday Clubs
Noah’s Ark
Kool Kids
Kitchen
Events
**TOTAL**|Unrestrict
ed
R & D
Total 2020
Total 2019
34158
0
34158
36121
108
26
0
10826
10424
36
05
0
3605
636|
|---|---|
||**48589**
**0**
**48589**
**47181**|
||449
0
449
6614
1655
0
1655
3823
0
0
0
0
7383
0
7383
4772
0
0
0
24|
||**9487**
**0**
**9487**
**15233**|
||5951
0
5951
12036
300
0
300
621
0
0
0
0
0
0
0
1621
115
0
115
317
74
0
74
317
74
0
74
250
185
0
185
1913|
||**6699**
**0**
**6699**
**17075**|
note **Fund Raising Mission** 4 Home Mission 0 0 0 0
10
|Thanet Winter Shelter
Children’s Society
Overseas Mission
Collections
**TOTAL**|0
0
0
0
284
0
2
84
558
1900
0
1900
119|
|---|---|
||**2184**
**0**
**2184**
**677**|
11
## **PAYMENTS**
|**Church Activities**
Note 5
Holiday Clubs
Brightnight
Childrens Resources
Teenagers
Alpha
**TOTAL**
**Church Running**
**Costs**
TV Licence
Note
6
Water rates
Insurance
Electricity
Window Cleaning
Cleaning
Caretakers salary
Kitchen Supplies
**TOTAL**
**Church Building**
**Costs**
Note 7
Equipment
Maintenance
Designated works
Servicing/Repairs
**Church**
**Administration**
Note 8
Administrators Salary
Photocopying|Unrestricted
R & D
Total
2020
Total 2019
127
0
127
1759
0
0
0
150
0
0
0
263
0
0
0
142
0
0
0
419
**127**
**0**
**127**
**2733**
157
0
157
154
664
0
664
596
1787
0
17
87
1776
3519
0
35
19
6264
1
00
0
100
224
565
0
565
1007
6107
0
6107
6
048
24
0
24
215|
|---|---|
||**12923**
**0**
**1292**
**3**
**16284**|
||24
0
24
410
120
0
120
981
0
816
816
4745
1727
0
172
7
2516|
||**1871**
**816**
**2687**
**8652**|
||4836
0
4836
4680
222
0
222
481|
12
|||||||||1|
|---|---|---|---|---|---|---|---|---|
|Telephone/Broadband|||1210|||0|1210|267|
|Stationery||||110||0|110|119|
|Postage||||0||0|0|60|
|Bank Charges||||60||0|60|122|
||||**6438**|||**0**|**6438**|**6729**|
|**Ministry**|||||||||
|Note9|||||||||
|Music & Copyright||||283||0|283|508|
|Service costs|||124|||0|124|233|
|Fees||||23||0|23|125|
|Training/Expenses||||642||0|642|816|
|||||||||1|
|Events|||0|||0|0|531|
|**TOTAL**|||**1072**|||**0**|**1072**|**3213**|
|**Mission**|note
10||||||||
||||2173||||21||
|Overseas Mission||||||0|73|449|
|Home Mission|||0|||0|0|46|
||||708||||||
|Children’s Society|||||69||777|1038|
|||||1|||||
|Thanet Winter Shelter|||273|||0|1273|1695|
|||||**415**|||||
|**TOTAL**||**4**||||**69**|**4223**|**3228**|
13
## **R & D Fund Balances 2020**
|**R & D Fund Balances**
**2020**||||
|---|---|---|---|
||**Repair**|**Missio**||
||**s**|**n**|**total**|
||Designat|Designa||
||ed|te||
|**Cash B/Fwd 1-1-2019**|8565|69|8634|
|**Income**|0|0|0|
|**Spending**||||
||816|69|885|
|**Carried Forward**||||
||**7749**|**0**|**7749**|
14