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 2022
|**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 2022
## **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 2022 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 (until APCM 22/05/22) Secretary Rev. S. Gay
Deanery Synod Representatives Mrs L. Oakley
Elected Members Mrs J. Rampall Mr C. Woodcock (until APCM 22/05/22) Mrs D. Tully Miss S. Woolley Mr A. Leal Mrs H. Gibson (from 20/12/22) Standing Committee Rev S. Gay Mr. D. Amor Miss H. Rogers Independent Examiner Mr Adrian Tasker 10 Chartwell Grove
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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
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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 71 (2021: 81). Sunday attendance fluctuates between around 50-60 adults and 10-20 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
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## **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 2022 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 fairly quiet year from a financial point of view. I am pleased to report that our regular hirers have returned following the lockdown periods providing a welcome source of income.
The Quinquennial review due during 2020 has still not taken place which has no doubt saved us expenditure on repairs.
It has been a year since Mandy Smith left us to be with her family in Sunderland and some significant savings have been made by the decision to replace her with volunteers. The office may run differently but my impression is that we have been able to manage without a paid administrator.
Regrettably we remain unable to pay, in full, the requested Parish Share. During 2022 we were able to contribute £43116 towards the requested sum of £69217. This mirrors previous years in which we have paid around 62% of the requested sum. This means that the deficit continues to grow and at the end of 2022 it had reached £121,000. 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 2023.
We have been shielded from some of the worst effects of the fuel price rises as we have a fixed term contract until May of 2024. We were also able to apply for a heating grant from the Diocese and were granted £3400 which was welcomed.
For the first time ever our Holiday at Home ran at a significant loss. This was due to the unexpected and substantial cost of the ingredients for the lunchtime meals. Nevertheless, the PCC were happy to accept this as part of our mission to the local community.
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. Our cash and cheques are banked at the local post office in our HSBC account and periodically funds are transferred to CAF Bank from which we meet our expenses. Sadly, the era of free charity banking has come to an end and
5
as well as a monthly fee all cash and cheque transactions are subject to a charge. However, the good news is that CAF have decided to pay interest on current account funds which generated £2.50 during 2022. I am still resisting the pressure to use a card reader for donations and so on.
During 2022 the PCC decided to join the Parish Giving Scheme (PGS) which will in effect replace Standing Orders with Direct Debit payments. This will save the treasurer a little work as Gift Aid donations will automatically be reclaimed on our behalf and paid directly into our account. I anticipate much of this year will be taken up with the transfer to the new system.
6
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022
## **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 where the PCC has decided to set aside monies for specific projects or items.
During the course of 2022, the PCC decided to discontinue the designated fund for Mission, as funds raised under this heading were immediately dispatched to the cause for which they were raised.
Currently, there remains one fund that is designated by the PCC for specific purposes. This is the Repairs Fund, which represents amounts set aside specifically to help meet the costs of major repairs.
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## STATEMENT OF ASSETS
## 31 DECEMBER 2022
CASH FUNDS AT 31 December 2022
|Lloyds TSB
Current Acc
CAF Bank
Current Acc
HSBC Bank
Current Acc
TOTALS|Unrestricted
R & D
Total 2022
Total 2021
22135
0
22135
21940
41431
3242
44673
29748
4368
0
4368
13719|
|---|---|
||67934
3242
71176
65407|
Approved by the PCC on 2023 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 2022, 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 examiner’s 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
- to keep accounting records in accordance with section 41 of the
- (1) (a) 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**
Dat e:
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## 10 Chartwell Grove Sittingbourne Kent ME10 1XD
## ST PHILIP’S NORTHDOWN PARK MARGATE
## FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
|**RECEIPTS**
Planned giving
see note 1
Other voluntary receipts
see note 2
Church Activities
See note 3
Mission
see note 4
Income Tax
Job Ret Scheme
Grant
**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/deficit**|Unrestricte
d
R & D
Total 2022
Total 2021
43559
0
43559
44179
5053
0
5053
14442
11669
0
11669
4725
808
0
808
252
8228
0
8228
8350
0
0
0
2755
3400
0
3400
0|
|---|---|
||**72717**
**0**
**72717**
**74703**|
||43116
0
43116
44004
2217
0
2217
0
1342
4
0
13424
10618
2254
3147
5401
3144
1318
0
1318
5449
605
0
605
592
1240
0
1240
303
0
0
0
0|
||**64174**
**3147**
**67321**
**64110**|
||72717
0
72717
74703
64174
3147
67321
64110|
||**8543**
**-3147**
**5396**
**10593**|
10
|**RECEIPTS**
**Planned Giving**
Note 1
SO Donations Gift Aid
SO Donations
Other
**TOTAL**
**Other voluntary receipts**
note 2
Service Collections
Collection Boxes
Legacies
Donations
Interest
**TOTAL**
**Receipts from Church activities**
note 3
Rent
Service Fees
Photocopying/Advertising
Holiday Clubs
Noah’s Ark
Kool Kids
Kitchen
Events
**TOTAL**
**Fund Raising Mission**
note 4
Home Mission
Children’s Society
Overseas Mission Collections
**TOTAL**|Unrestricted
R & D
Total 2022
Total 2021
34114
0
34114
34634
8587
0
8587
9245
858
0
858
300|
|---|---|
||**43559**
**0**
**43559**
**44179**|
||0
0
0
0
3892
0
3892
1741
0
0
0
10000
1159
0
1159
2701
2
0
2
0|
||**5053**
**0**
**5053**
**14442**|
||10298
0
10298
4498
0
0
0
174
0
0
0
0
1281
0
1281
0
0
0
0
21
0
0
0
32
90
0
90
0
0
0
0
0|
||**11669**
**0**
**11669**
**4725**|
||120
0
120
0
109
0
109
42
579
0
579
210|
||**808**
**0**
**808**
**252**|
11
## **PAYMENTS**
|**Church Activities**
Note 5
Holiday Clubs
Bright Night
Childrens Resources
Teenagers
Alpha
**TOTAL**
**Church Running Costs**
Note 6
TV Licence
Water rates
Insurance
Electricity
Window Cleaning
Cleaning
Caretaker’s salary
Kitchen Supplies
**TOTAL**
**Church Building Costs**
Note 7
Equipment
Maintenance
Designated works
Servicing/Repairs
Gardening
**TOTAL**
**Church Administration**
Note 8
Administrators Salary
Photocopying
Telephone/Broadband
Stationery
Postage
Bank Charges
**TOTAL**|Unrestricted
R & D
Total 2022
Total 2021
1746
0
1746
0
0
0
0
0
80
0
80
0
0
0
0
0
391
0
391
0|
|---|---|
||**2217**
**0**
**2217**
**0**|
||159
0
159
159
48
0
48
236
1881
0
1881
1809
4621
0
4621
2249
0
0
0
0
380
0
380
237
6278
0
6278
5928
57
0
57
24|
||**13424**
**0**
**13424**
**10618**|
||92
0
92
902
160
0
160
329
0
3147
3147
1360
1452
0
1452
428
550
0
550
125|
||**2254**
**3147**
**5401**
**3144**|
||0
0
0
4272
105
0
105
56
1022
0
1022
927
0
0
0
36
0
0
0
47
191
0
191
111|
||**1318**
**0**
**1318**
**5449**|
Unrestricted R & D Total 2022 Total 2021
12
|**Ministry**
Note 9
Music & Copyright
Service costs
Fees
Training/Expenses
Adult Resources
**TOTAL**
**Mission**
note 10
Overseas Mission
Home Mission
Children’s Society
Warm Space
**TOTAL**|305
0
305
292
301
0
301
231
0
0
0
0
0
0
0
0
0
0
0
69|
|---|---|
||**606**
**0**
**606**
**592**|
||1138
0
1138
303
0
0
0
0
0
0
0
0
102
0
102
0|
||**1240**
**0**
**1240**
**303**|
## **R & D Fund Balances 2022**
||**Repairs**|**Mission**|**Total**|
|---|---|---|---|
||Designated|Designated||
|Cash B/Fwd 1-1-2021|6389|0|6389|
|Income|0|0|0|
|Spending|3147|0|3147|
|**Carried Forward 31-12-2022**|**3242**|**0**|**3242**|
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