## 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 2025 

**CONTENTS Pages** 

2-5     Parochial Church Council’s report 6        Notes to the Accounts 

7        Statement of Assets and Liabilities 8        Independent Examiner’s report 

9-11  Financial Statements 

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## THE REPORT OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PHILIP, MARGATE 

## FOR THE YEAR ENDED 31 DECEMBER 2025 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 2025 until the date of this report was approved are: 

Vicar Rev. S. Gay Lay Reader Miss H. Rogers Warden Mr D. Amor Secretary Rev. S. Gay Elected Members Mrs D. Tully Miss S. Woolley Mr A. Leal Mrs L. Oakley Mrs Julia Silcock (w.e.f. 27[th] April 2025) 

Standing Committee 

Rev S. Gay, Mr D. Amor, Miss H. Rogers 

Treasurer                                                               Mr R. Bacon 

Independent Examiner 

Mr C. Sykes 

Flat 3 Roxbury House, 115 Station Road, 

Birchington, Kent 

CT7 9RE 

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Bankers Charities Aid Foundation Bank 

Kingdom 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 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. Numbers are consistent but have been boosted by a weekly ‘Junior Church.’ We have engaged with Diocesan initiatives on prayer and finance. 

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## Pastoral Care 

Our small groups undertake to exercise pastoral care for their group members 

## Mission and Evangelism 

We run several 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 55 (2024: 61). Sunday attendance fluctuates between around 50-70 adults ~~a~~ nd 5-15 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 for an appeal for funds from the congregation and for the PCC to consider alternative financial strategies. This reserve is held in the CAF Deposit account. 

## 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. 

## Financial review 

The accounts for 2025 have been prepared on a receipts and payments basis as recommended for the level of income generated at St Philip’s. 

Here is a summary comparing 2025 with 2024.(Detailed on page 9-11) 

|SUMMARY<br>TOTAL INCOME<br>Less LEGACIES<br>INCOME EXCLUDING LEGACIES<br>TOTAL EXPENDITURE<br>**(ExcessExpenditure)/**<br>**Surplus Income**|2025<br>2024<br>£82,474<br>£199,0<br>40<br>£112,1<br>98|Diferenc<br>e<br>£116,56<br>6<br>-<br>£112,19<br>8<br>£4,368<br>£18,882<br>**£23,250**|Comparing 2024|
|---|---|---|---|
||||<br>Reduction of<br>Income<br>Decrease Of<br>Legacy<br>Reduction of<br>Income<br>Increased<br>Expenditure<br>Decrease of funds|
||£82,474<br>£86,84<br>2<br>-<br>£101,02<br>5<br>-<br>£82,14<br>3|||
||**-**<br>**£18,55**<br>**1**<br>**£4,69**<br>**9**|||
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Income has remained close to that of 2024 but down £4k overall, (excluding last year’s legacies). 

The main contributors to this reduction are:Planned giving has fallen by £5.3k including the recoverable gift aid. Other voluntary donations are also down by a £1.3k as also is rental income  by £1.4K. 

On the plus side however we have received one-off back-dated gift aid of £2.5k and interest on bank deposits of £2.0k. 

However, I am pleased to report that our regular hirers continue to use the building providing a welcome source of income. In addition, we have added two more regular hirers being the Café and a chair class. 

Expenditure has increased markedly against last year by £18k. This is due principally to an increase in Parish Share to the Diocese  of £8K, an increase in energy costs of £2.9K, extra cleaning costs of £2.4K, and the PCC decision to support local missions of Christians against Poverty and Active Christianity in Thanet Schools making £300 donations each month totalling £2.7k (since April only)and £3.6k respectively. 

Due primarily to the introduction of the café in the earlier part of the year we have uncovered that we are in breach of VAT regulations regarding  the use of energy within the building. Legislation requires that any business use of the building in excess of 40% attracts the standard 20% rate of VAT on that proportion rather than the charitable rate of 5%. In a full year this will equate to an additional annual charge of around £750 (for the year under review around £200). 

The relevant disclosure of the event was made to our energy supplier in early December 2025 and will be reviewed annually to ensure our compliance. 

I am pleased to report that the Parish Giving Scheme (PGS) which replaced the Standing Orders with Direct Debit payments continues to run smoothly. 

There has been no change in the overall number of contributors throughout the year i.e. 34 active donors, the same number as at the close of 2024 _._ There were two leavers and two starters during 2025, leaving the number unchanged from the 2024 year end. 

However there has been an overall reduction in the amount donated in 2025 compared with 2024. 

This is partially explained by the fact that 2024 had 36 active donors but only 34 at the year-end close. 

In addition during 2025 we have experienced  a reduction in giving caused by changes in donor’s personal circumstances. However, 20 donors had signed up for the inflationary increases of 2.5% in April 2025 which has allayed some of the reduction. 

Coming from a peak PGS annual income including the gift aid in 2024 of £57.2k it had reduced in 2025  to £51.1k and will reduce still further to £47.8k in 2026 based on the latest donations. Other voluntary donations  comprise a mix of monthly standing orders and other periodic donations. 

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We do however remain mindful of the generosity shown by our church family, and thank them for their faithfulness. I am also indebted to all participants in the scheme as this saves an inordinate amount of time in the administration of gifts and claiming of the gift aid. 

Regrettably we remain unable to pay, in full, the requested Parish Share. During 2025 we were able to contribute £57,240 (in 2024 we contributed £49404) towards the requested sum of £80,053. This mirrors previous years in which we have paid around two thirds of the sum. The cumulative deficit at the end of the current financial year 2025 stands at £196k. 

Hence the deficit will continue to grow, as we will remain unable to meet, in full, the requested share for 2026 which we have been notified as £81k an increase of 1% on 2025. 

In terms of our payments, we send to Canterbury the funds we receive from our regular PGS donations, including the associated gift aid and use the income from hiring the building and other voluntary donations to fund our day to day running expenses. 

We were fortunate to receive two legacies in 2024, one of these coming with an expressed wish that the funds be used to maintain and look after the building. A sum of £4648 was charged against the building legacy in 2025 and has given us scope to make improvements to the building and its regular maintenance. 

The legacies have contributed to a rather healthy-looking bank balance and should secure the upkeep of the premises for many years to come. Hence we were able to place some funds on deposit to gain valuable income. The PCC had decided to open a deposit account with Kingdom Bank with a sum of £80k. This is for a period of 18 months at a fixed rate of 3.25% pa, maturing in April 2027. Other surplus funds are held in the CAF Bank On-call deposit account at a variable interest rate currently 1.55%.  Cash which does not attract any interest i.e. CAF Current account and the HSBC account is kept to a minimum. 

## 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 is one restricted Fund, a very generous legacy left for St Philips to meet the costs of caring for the building and its upkeep. As previously mentioned £4648 of this legacy has been used. 

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Designated Funds are those where the PCC has decided to set aside monies for specific projects or items. 

Currently, there is one fund that is designated by the PCC for specific purposes. This is the Reserves Fund, which represents an amount set aside specifically to help meet the costs of emergencies or special projects. 

## STATEMENT OF ASSETS 

## 31 DECEMBER 2025 

## CASH FUNDS AT 31 December 2025 

||Unrestricted||R & D|Total 2025|Total 2024|
|---|---|---|---|---|---|
|Kingdom<br>Bank|||£80000|£80000|<br>0|
|CAF Bank||||||
|Current|£1560||0|£1561|£90034|
|Account||||||
|HSBC Bank||||£580|£96788|
|Current|£ 580|||||
|Account||0||||



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CAF Bank Deposit £54327 £41803 £96130 £10000 Account TOTALS £56467 £121803 £178271 £196822 

Approved by the PCC on                                         2026 and signed on their behalf by 

Reverend Stuart Gay (PCC Chairman) …………………………………… 

David Amor (Church Warden) …………………………………………… 

## 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 2025, which are set out on pages 8 to 10, 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. 

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## **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 Act; 

- (1) (a) 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 to enable a proper understanding 

**Chris Sykes** Dat 

**…………………………………………..** 

e: 

Flat 3 Roxbury House, 115 Station Road, Birchington, Kent CT7 9RE 

## ST PHILIP’S NORTHDOWN PARK MARGATE 

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 

## RECEIPTS 

2025 2024 

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|||£|£|
|---|---|---|---|
||Planned Giving<br>Note1|44662|48908|
||Other Voluntary Receipts<br>Note2|8221|121029|
||Church Activities<br>Note 3|15653|17893|
||Mission<br>Note4|152|265|
||Income Tax Recovered (PGS & Other)|11610|10834|
||Interest|2176|111|
||TOTAL RECEIPTS|82474|199040|
||**Planned Giving**<br>**Note 1**|||
||Donation PGS|41610|46411|
||Donation Standing Orders|3052|2497|
||**TOTAL PLANNED GIVING**|**44662**|48908|
||**Other Voluntary Receipts Income**<br>**Note 2**|||
|||||
||Service Collections (Wall box)|4184|4271|
||Other Donations|3204|4380|
||Legacies|0|112198|
||Donations Card M/c|108|180|
||Donations Holiday at Home|725|0|
||**TOTAL VOLUNTARY RECEIPTS**|**8221**|121029|
||**Church Activities Income**<br>**Note 3**|||
|||||
||Rentals|12626|14049|
||Service Fees|1237|1109|
||Photocopying/advertising|0|0|
||Holiday at home|1790|2415|
||Children’s Clubs|0|0|
||Kitchen|0|110|
||Alpha|0|0|
||Events|0|210|



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||Other|0|0|
|---|---|---|---|
||**TOTAL CHURCH ACTIVITIES**|**15653**|17893|
||**Mission Income**<br>**Note 4**|||
|||||
||Children’s Society|152|265|
||Overseas Mission|0|0|
||Home Mission|0|0|
||**TOTAL MISSION**|**152**|265|



||EXPENDITURE SUMMARY|||||
|---|---|---|---|---|---|
||Church Activities<br>Note 5||1880||2376|
||Church Running Costs<br>Note 6||23789||17580|
||Church Building Costs<br>Note7||5950||7674|
||Church Administration<br>Note 8||2363||2551|
||Ministry<br>Note 9||1903||1340|
||Mission<br>Note10||7900||1218|
||Parish Share||57240||49404|
||**TOTAL EXPENDITURE**<br>**CHURCH ACTIVITIES Expenditure**<br>**Note 5**||**101025**||**82143**|
|||||||
|||||||
||Holiday Clubs||1627||2104|
||Bright-night||76||98|
||Children’s Resources||152||174|
||Christingle||25||0|
||**TOTAL ACTIVITIES**<br>**CHURCH RUNNING COSTS**<br>**Note 6**||**1880**||**2376**|
|||||||
|||||||
||TV Licence||174||169|
||Water rates||589||522|
||Insurance||2114||2058|
||Electricity||9773||6919|



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||Cleaning|2845|424|
|---|---|---|---|
||Caretakers’ salary|8184|7488|
||Kitchen Supplies|100|0|
||Medical Supplies|10|0|
||**TOTAL RUNNING COSTS**|**23789**|**17580**|
||**CHURCH BUILDING COSTS**<br>**Note 7**|||
|||||
||Equipment & repairs|135|0|
||Designated Building & Equipment|4648|6614|
||Servicing|917|650|
||Gardening|250|410|
||**TOTAL BUILDING COSTS**|**5950**|**7674**|
||**CHURCH ADMINISTRATION**<br>**Note 8**|||
|||||
||Photocopying|40|694|
||Telephone/Broadband|1476|1195|
||Admin|686|329|
||Bank Charges|161|333|
||Postage|0|0|
||**TOTAL ADMINISTATION**|**2363**|**2551**|
||**MINISTRY**<br>**Note 9**|||
|||||
||Music/copyright|664|645|
||Service costs|1239|521|
||Youth Resources|0|174|
||Adult Resources|0|0|
||Events|0|0|
||**TOTAL MINISTRY**|**1903**|**1340**|
||**MISSION Expenditure**<br>**Note 10**|||
|||||



12 



||Overseas Mission (K&N & Shoe Boxes)|181|308|
|---|---|---|---|
||Home Mission ACTS|3600|910|
||Home Mission CAP|2700|0|
||Home Mission Children’s Society|465|0|
||Home Mission Warm Space|392|0|
||Home Mission Guppies|562|0|
||**TOTAL MISSION**|**7900**|**1218**|



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