**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 2021**
|**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 2021**
## **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 2021 until the date of this report was approved are:
Vicar Rev S. Gay Lay Reader Miss H. Rogers Wardens Mr. D. Amor (Treasurer) Mr K. Locking
Secretary Rev. S. Gay
Deanery Synod Representatives Mrs L. Oakley Elected Members Miss L. Carew-Jones (until APCM 17/05/21) Mrs. J. Rampall Mr. C. Woodcock Mrs D. Tully Miss S. Woolley Mr A. Leal Standing Committee Rev S. Gay Mr. D. Amor Miss H. Rogers
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Independent Examiner
Bankers
Mr. Adrian Tasker 10 Chartwell Grove Sittingbourne ME10 1XD 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.
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## **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 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. 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. 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.
## **Church attendance**
The electoral roll is currently 81 (2020: - 83). 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.
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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.
## **Financial review**
The accounts for 2021 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. The building was shut for a significant period and the Quinquennial review due during 2020 has still not taken place.
Regrettably we remain unable to pay, in full, the requested Parish Share. During 2021 we were able to contribute £44004 towards the requested sum of £75579. This means that the deficit continues to grow and at the end of 2021 it had reached £95000. This is unlikely to be reduced in the near future. In fact, I have to report that it will continue to grow as we remain unable to meet the requested share for 2022.
The Covid 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 in 2020. On top of this we have not been able to fully open the building for lettings which form a substantial part of our income. Sadly, this year we also lost several members of our church family who had donated by Standing Order. 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 £2700 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
5
matched what we have lost in regular income and the Gift Aid that accompanies and supplements our service collections.
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 with an on-line facility. Sadly, the era of free charity banking has come to an end and as well as a monthly fee all cash and cheque transactions are subject to a charge. I am still resisting the pressure to use a card reader for donations and so on.
You will be aware that Mandy Smith who had worked in our office for many years left us to join her family in Northumberland. The PCC took the decision not to replace her with a paid person but to ask for volunteers to staff the office. This decision will no doubt be reviewed in due course.
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
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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.
6
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
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## **STATEMENT OF ASSETS**
## **31 DECEMBER 2021**
## **CASH FUNDS AT 31 December 2021**
|Lloyds TSB
Current Acc
CAF Bank
Current Acc
HSBC Bank
Current Acc
TOTALS|Unrestricted
R & D
Total 2021
Total 2020
21940
0
21940
21775
23359
6389
29748
31588
13719
0
13719
1573|
|---|---|
||59018
6389
65407
54936|
Approved by the PCC on 2022 and signed on their behalf by
Reverend Stuart Gay (PCC Chairman)
David Amor (PCC Treasurer)
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## **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 202 which are
set out on pages 7 to 12, is in respect of an examination carried out in accordance with the Church
## **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**
Commission under section 43(7) (b) of the Act and to be found in the Church guidance, 2006 edition.
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**
reasonable
- cause to believe that, in any material respect, the requirements to keep accounting records in accordance with section 41
- (1) (a) 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
9
## a proper understanding
## Dat
## **Adrian Tasker**
e:
10 Chartwell Grove Sittingbourne Kent ME10 1XD
## **ST PHILIP’S NORTHDOWN PARK MARGATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**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**|Unrestrict
ed
R & D
Total
2021
Total 2020
44179
0
44179
48589
8350
0
8350
5192
2755
0
2755
5122
14442
0
14442
9487
4725
0
47
25
6699
252
0
252
2184|
|---|---|
||**74703**
**0**
**7470**
**3**
**77273**|
||44004
0
44004
56566
0
0
0
127
10618
0
10618
12923
17
84
1360
3144
2687
5449
0
5449
6438
592
0
592
1072
303
0
303
4223
0
0
0
0|
||**62750**
**1360**
**6411**
**0**
**84036**|
||74703
74703
77273|
10
|**TOTAL EXPENDITURE**
**Surplus/defcit**|0
62750
-1360
64110
84
036|
|---|---|
||**11953**
**-1360**
**1059**
**3**
**-6763**|
|**RECEIPTS**
**Planned Giving**
Note
1
SO Donations Gift Aid
SO Donations
Other
**TOTAL**
**Other voluntary receipts**
note
2
Service Collections
Collection Boxes
Legacies
Donations
**TOTAL**
**Receipts from Church**
**activities**
note
3
Rent
Service Fees
Photocopying/Advertising
Holiday Clubs
Noah’s Ark
Kool Kids
Kitchen
Events|Unrestrict
ed
R & D
Total 2021
Total 2020
34634
0
34634
34158
92
45
0
9245
10826
30
0
0
300
3605|
|---|---|
||**44179**
**0**
**44179**
**48589**|
||0
0
0
449
1741
0
1741
1655
10000
0
10000
0
2701
0
2701
7383|
||**14442**
**0**
**14442**
**9487**|
||4498
0
4498
5951
174
0
174
300
0
0
0
0
0
0
0
0
21
0
21
115
32
0
32
74
0
0
0
74
0
0
0
185|
11
|**TOTAL**
**Fund Raising Mission**
note
4
Home Mission
Children’s Society
Overseas Mission
Collections
**TOTAL**|**4725**
**0**
**4725**
**6699**|
|---|---|
||0
0
0
0
42
0
42
284
210
0
210
1900|
||**252**
**0**
**252**
**2184**|
12
## **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
Gardening
**TOTAL**
**Church**
**Administration**
Note 8
Administrators Salary
Photocopying|Unrestricted
R & D
Total
2021
Total 2020
0
0
0
0
0
0
0
0
0
0
0
127
0
0
0
0
0
0
0
0
**0**
**0**
**0**
**127**
159
0
159
157
236
0
236
664
1809
0
18
09
1787
2249
0
22
49
3519
0
0
0
100
237
0
237
565
5928
0
5928
61
07
0
0
0
24|
|---|---|
||**10618**
**0**
**1061**
**8**
**12923**|
||902
0
902
24
329
0
329
120
0
1360
1360
816
428
0
428
1727
125
0
125
0|
||**1784**
**1360**
**3144**
**2687**|
||4272
0
4272
4836
56
0
56
222|
13
|Telephone/Broadband
Stationery
Postage
Bank Charges
**Ministry**
Note9
Music & Copyright
Service costs
Fees
Training/Expenses
Adult Resources
Events
**TOTAL**
**Mission**
note
10
Overseas Mission
Home Mission
Children’s Society
Thanet Winter Shelter
**TOTAL**|927
0
927
12
10
36
0
36
110
47
0
47
0
111
0
1
11
60|
|---|---|
||**5449**
**0**
**5449**
**6438**|
||292
0
292
283
231
0
231
124
0
0
0
23
0
0
0
642
69
0
69
0
0
0
0
0|
||**592**
**0**
**592**
**1072**|
||303
0
30
3
2173
0
0
0
0
0
0
0
777
0
0
0
1273|
||**303**
**0**
**303**
**4223**|
**R & D Fund Balances 2021**
**Repair Missio s n total** Designat Designa ed te
14
|**Cash B/Fwd 1-1-2020**|7749||0|7749|
|---|---|---|---|---|
|**Income**|0||0|0|
|**Spending**|||||
||1360||0|1360|
|**Carried Forward**|||||
||**6389**|**0**||**6389**|
15