Financial Review
The PCC is very grateful for the continued generosity of the church members through planned and ad hoc giving to support the work of the church. The cost-ofliving crisis and the vacancy period have been challenging but the PCC is confident that with an ongoing focus on stewardship Burpham Church will once again manage to generate the funds required to maintain a full time incumbent and a children’s/youth pastor.
The church finances showed a deficit just over £49k at the end of 2023. Total income was just over £179k which was favourable to income in 2022 of £173k. Although regular giving was down by around £11.6k this was more than offset by additional one-off donations which were £15k favourable to 2022.
Expenses for the year 2023 were just over £228k which was around £36k more than 2022. This is mainly due to the resurfacing of the car park at CHS (Church of the Holy Spirit), roof repairs at CHS and quinquennial works at St Lukes. Utility bills were also higher than 2022 by around £6k. These were partially offset by lower staff costs which resulted from the ongoing delay in replacing the Youth and Children’s Pastor.
The PCC remains committed to the policy of tithing the voluntary unrestricted income and accordingly £15.7k was allocated to mission giving, principally distributed to the five mission partners adopted by the church.
The cash position of the church remains strong due to the exceptional gift received in 2019 and 2020. The PCC realise that further focus on stewardship is needed in order to accomplish our missional objectives.
Reserves Policy
The PCC keeps its Reserves Policy under regular review and adopted the following revised policy in 2019:
“It is the policy of Burpham Church to hold the equivalent of four months of salary costs and two months of running costs, excluding the Parish Share, in reserves. Such funds will be held in a cash investment account separate from the day to day working capital cash of the church.”
Independent Examiner's Report to the Members of the Parochial Church
Council of the Parish of Burpham St Luke’s with the Church of the Holy Spirit
| report on the accounts for the year ended 31 December 2023 which are set out in the foliowing pages.
Respective responsibilities of the Trustees and Independent Examiner
As trustees of the charity, the members of the PCC are responsible for the preparation of the accounts. They consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to
-
® examine the accounts under section 145 of the 2011 Act;
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e follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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e state whether particular matters have come to my attention.
Basis of Independent Examiner's Statement
My examination was carried out in accordance with the General Directions given by the Charity Commission.
An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair” view and the report is limited to those matters set out in the statement below.
Independent Examiner's Statement
Since the gross income for the year exceeds the amount provided in section 145(3) of the Act, | confirm that | am qualified to act as Independent Examiner under the provisions of that section of the Act and that my qualification is as shown below.
In connection with my examination, no matter has come to my attention
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which gives me reasonable cause to believe that in any material respect the requirements
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to keep accounting records in accordance with s.130 of the 2011 Act; or
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to prepare accounts which accord with these accounting records and comply with the accounting requirements of the 2011 Act have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper = of the accounts to be reached.
Andrew Wye, FCA j 4 Beaufort Parklands, Railton Road, Guildford, Surrey GU2 9JX 18 March 2023
Burpham Parish Church STATEMENT OF FINANCIAL ACTIVITIES For the Year Ended 31 December 2023
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Unrestricted|Designated|Restricted|Total|Total|
|Funds|Funds|Funds|2023|2022|
|Note|£|£|£|£|£|
|Incoming|Resources|
|Voluntary|income|2a|147,950|3,240|2,800|153,990|151,691|
|Activities|for|generating|funds|2b|16,241|1,355|-|17,596|14,033|
|Interest|receivable|2c|240|240|699|
|Church|activities|2d|7,254|7,254|6,751|
|Total Incoming Resources|471,685|4,595|2,800|479,079|173,174|
|Resources|Expended|
|Church|Activities|3a|184,283|14,892|29,018|228,193|192,039|
|Total Resources Expended|484,283|14,892|29,018|228,193|; 192,039|
|Net Incoming|Resources|(12,598)|(10,297)|(26,218)|(49,114)|(18,865)|
|Transfers|Between|Funds|
|Net Movement in Funds|(42,598)|(10,297)|(26,218)|(49,114)|(18,865)|
|Balances|b/f|at|1|January 2023|60,835|317,143|26,218|404,196|423,060|
|Balances c/f 31|December 2023|48,237|306,845|-|355,082|404,195|
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Burpham Parish Church BALANCE SHEET
As at 31 December 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| FIXED ASSETS | Note | & | £ | £ £ |
|
| Tangible FixedAssets | 6 | 4,055 | 7,465 | ||
| CURRENTASSETS | |||||
| Debtors | 7 | 21,764 | 74,272 | ||
| Short term deposits | 75,000 | 75,000 | |||
| Cash at bankand in hand | 273,821 | 275,339 | |||
| Total currentassets | 370,585 | 424,611 | |||
| CURRENT LIABILITIES | |||||
| Creditors | |||||
| Other creditors | 8 | (19,558) | (27,881) | ||
| Amounts falling due within | on | (19,558) | (27,881) | ||
| NETCURRENTASSETS | 351,027 | 396,730 | |||
| TOTALASSETS LESS LIABILITIES | 355,082 | 404,195 | |||
| FUNDS AND RESERVES | |||||
| UNRESTRICTED RESERVES | |||||
| General Reserve | 48,237 | 60,835 | |||
| DESIGNATED FUNDS | |||||
| Mission Fund | 9a | - | 4,447 | ||
| Drop-in | 9a | 5,150 | 4,852 | ||
| Major Projects | 9a | 299,195 | 305,343 | ||
| NewWine | 9a | 2,500 | 2,500 | ||
| 306,845 | 317,142 | ||||
| RESTRICTED FUNDS | |||||
| Building Fund | 9b | - | 26,218 | ||
| - | 26,218 | ||||
| 355,082 | 404,195 |
Approved by the members of the Parochial Church Council on xx March 2024 and Signed on their behalf by:
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Lewis wiiams, Chair of PCC Rev Jo Lamberth, Treasurer
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The notes on the following 8 pages form part of these accounts
Burpham Parish Church NOTES TO THE ACCOUNTS
For the Year Ended 31 December 2023
1 Accounting policies
The PCC is a public benefit entity within the meaning of Financial Reporting Standard (FRS) 102. The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs and with the Regulations' ‘true and fair view’ provisions. They have been prepared under FRS102 (2016) as the applicable accounting standards and the 2016 version of the Statement of Recommended Practice (SORP), Accounting and Reporting by Charities (SORP(FRS102)).
The financial statements include all transactions, assets and liabilities for which the PCC is responsible in lav. They do not include the financial statements of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.
INCOMING RESOURCES
Voluntary income and capital sources
Collections are recognised when received by or on behalf of the PCC. Planned giving receivable under Gift Aid is recognised only when received. Income tax recoverable on Gift Aid donations is recognised when the donation is recognised. Grants, donations and legacies to the PCC are recognised as soon as the PCC is notified of its legal entitlement, the amount due is quantifiable, and its ultimate receipt by the PCC is reasonably certain
Sales of the parish magazine and funds raised through one-off events and activities are accounted for gross.
Other income
Rental income from the letting of the church centre is recognised when due.
Income from investments
Interest entitlements are recognised as they accrue.
Gains and losses on investments
Realised gains or losses are recognised when investments are sold. Unrealised gains or losses are recognised on revaluation of investments at 31 December
RESOURCES USED
Grants
Grants and donations are accounted for in the year recognised as the qualifying period.
Activities directly relating to the work of the church
The diocesan parish share is accounted for when due.
For the Year Ended 31 December 2023
Burpham Parish Church NOTES TO THE ACCOUNTS
1 Accounting policies (continued)
FIXED ASSETS
Consecrated property and movable church furnishings
Consecrated and beneficed property of any kind is excluded from the financial statements by the Charities Act 2011.
Movable church fumishings held by the vicar and churchwardens on special trust for the PCC and which require a faculty for disposal are accounted for as inalienable property unless consecrated. They are listed in the church's inventory, which can be inspected at any reasonable time. Items acquired since 1 January 1998 have been capitalised and depreciated in the financial statements over their currently anticipated useful economic life on a straight-line basis.
All expenditure incurred in the year on consecrated or beneficed buildings, individual items under £500, and the repair of movable church furnishings acquired before 1 January 1998 is written off.
Other fixtures, fittings and office equipment
Equipment used within the church premises is depreciated on a straight-line basis over 4 - 6 years, with the exception that fixtures and fittings are depreciated over 10 years. Individual items of expenditure of less than £500 are normally written off in the year in which they are acquired.
Current assets
Amounts owing to the PCC on 31 December in respect of Gift Aid tax recoverable, fees, rents or other income are shown as debtors less provision for amounts that are deemed to be uncollectable. Short term deposits include cash held on deposit at a recognised UK bank or financial institution.
FUNDS
Unrestricted Funds represent the income funds of the PCC that are not subject to any restrictions regarding their use and are available for spending on the general purposes of the PCC, including amounts designated by the PCC for fixed assets for its own use or for spending on a future project.
Designated Funds allocated by the PCC for a particular purpose are also unrestricted as they may be undesignated by the PCC and applied for general purposes. Restricted Funds are those income funds that must be spent on restricted purposes, and details of the funds held and restrictions provided are included in the notes to the accounts.
Burpham Parish Church NOTES TO THE ACCOUNTS
For the Year Ended 31st December 2023
| 2 | Incoming Resources | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Designated | Restricted | Total | Total | ||||||
| Funds | Funds | Funds | 2023 | 2022 | ||||||
| £ | £ | £ | £ | & | ||||||
| 2a | Voluntary Income | |||||||||
| Planned Giving | GiftAid Donation | 75,412 | 3,240 | 2,800 | 81,452 | 93,451 | ||||
| TaxRecoverable | 17,119 | - | - | 17,119 | 23,363 | |||||
| Other | 11,519 | - | - | 11,519 | 4,892 | |||||
| Loose Collections | - | - | - | - | 595 | |||||
| Tax recoverable | - | - | - | - | - | |||||
| Donations | Received net | - | - | - | - | 672 | ||||
| Tax Recoverable | - | - | - | - | 168 | |||||
| Other | 43,900 | - | - | 43,900 | 28,550 | |||||
| Legacies | ——— | —_— | - | - | _- | - | ||||
| 147,950 | 3,240 | 2,800 | 153,990 | 151,691 | ||||||
| 2b | Activities forGenerating | Funds | ||||||||
| Trading Activities | 15,941 | - | - | 15,941 | 13,141 | |||||
| Fundraising Activities | 191 | - | - | 191 | 892 | |||||
| Grant | _- | - | a | : | - | |||||
| 16,132 | - | - | 16,132 | 14,033 | ||||||
| 2c | interest Receivable | |||||||||
| On depositaccounts | 240 | - | - | 240 | 188 | |||||
| On loans | - | - | — | : | 511. | |||||
| 240 | - | - | 240 | 699 | ||||||
| 2d | Income from Church Activities | |||||||||
| Fees forweddings andfunerals | 3,755 | - | - | 3,755 | 317 | |||||
| Regularweekly activities | 2,205 | - | - | 2,205 | 1,927 | |||||
| Other activities and events | = | 1,403 | 1,355 | - | 2,758 | 4,507 | ||||
| 7,363 | 1,355 | - | 8,718 | 6,751 | ||||||
| 171,685 | 4,595 | 2,800 | 179,079 | 173,174 |
Burpham Parish Church NOTES TO THE ACCOUNTS For the Year Ended 31st December 2023
3 Resources Expended
| Unrestricted Funds |
Designated Funds |
Restricted Funds |
Total 2023 |
Total 2022 |
|||
|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |||
| 3a | Church activities | ||||||
| MissionGiving | Tithed Giving | 11,276 | 4,447 | - | 15,723 | 14,572 | |
| Charitable Gifts | - | - | - | - | - | ||
| ParishShare | 88,928 | - | - | 88,928 | 87,495 | ||
| StaffSalaries (see note4) | 15,387 | 3,240 | - | 18,627 | 37,319 | ||
| Vicar/Curate/Staffexpenses | 2,086 | - | - | 2,086 | 1,193 | ||
| Staffand Volunteer training anddevelopmen | 214 | - | - | 214 | 1,081 | ||
| Upkeep ofServices | 721 | - | - | 721 | 1,430 | ||
| Youth& children's work& activities | 395 | - | = | 395 | 1,908 | ||
| Church Events costs | 586 | 1,057 | - | 1,643 | 1,943 | ||
| Discipleship and welfare | 125 | - | - | 125 | 629 | ||
| MajorBuildingsWorks | - | 6,148 | 26,708 | 32,866 | - | ||
| Utilities | 14,770 | - | - | 14,770 | 8,567 | ||
| Insurance | 3,223 | - | - | 3,223 | 3,053 | ||
| OfficeCosts | 6,565 | - | 60 | 6,625 | 7,141 | ||
| Cleaning and Refuse collection | 4,319 | - | - | 4,319 | 853 | ||
| Maintaining St Lukes Church and Churchyarc | 10,876 | - | 2,250 | 13,126 | 2,754 | ||
| Other maintenance Costs | 18,498 | - | - | 18,498 | 8,521 | ||
| Depreciation ofequipment(note 7) | 3,791 | - | - | 3,791 | 6,600 | ||
| Vicarage maintenance and expenses | 1,062 | - | - | 1,062 | 4,604 | ||
| Independent examinationfee | 1,460 | - | - | 1,460 | 550 | ||
| Quinquennia!Survey | - | - | - | - | 2,249 | ||
| Othergovemance costs | - | - | - | - | 2,577 | ||
| TotalExpenditure | 184,283 | 14,892 | 29,018 | 228,193 | 192,039 |
- 4
Staff Costs
| Staff Costs | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Wages and salaries | 17,236 | 35,794 |
| National Insurance | - | - |
| Pension contributions | 1,391 | 1,525 |
| 18,627 | 37,319 |
The Church employed a Church Centre Manager working on weekday mornings during termtime based in the Parish Office and part-time administrators working the equivalent of 3 full days each week until their contracts ended on 31st July 2023.
As a registered charity, Burpham Church qualifies for the Government's Employment Allowance. The full value of employer class 1 national insurance contributions arising during the year was less than the overall allowance. No payments or expenses were paid during the year (2022 - none) to any PCC member, persons closely connected to them or related parties, in connection with their PCC duties.
Burpham Parish Church NOTES TO THE ACCOUNTS
For the Year Ended 31st December 2023
5 Pensions
Burpham Church participates in the Pension Builder Scheme of the Church Workers Pension Fund (CWPF) for lay staff. The Scheme is administered by the Church of England Pensions' Board which holds the assets of the schemes separately from those of Burpham Church and the other participating employers.
The Pension Builder Scheme of the CWPF is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes. Lay employees of Burpham Church are enrolled to the cash balance section known as Pension Builder 2014 with contribution rates of 4% for the employee and 4.5% for the employer, including 0.5% for life insurance cover.
Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age. The Scheme provides a guarantee to members that their account will not be worth less than the amount of cash paid in and so, in this regard only, the scheme has the attributes of a defined benefit scheme.
The scheme is considered to be a multi-employer scheme as described in Section 28 of Financial Reporting Standard (FRS) 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable of £1,391 (2022 - £1,525).
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2022. The next valuation is due as at 31 December 2025. For the Pension Builder 2014 section the 2019 valuation revealed a surplus of £2m on the ongoing assumptions used. There is no requirement for deficit payments at the current date.
The legal structure of the scheme is such that if another employer fails, Burpham Church could become responsible for paying a share of that employer's pension liabilities. The PCC consider that the risk of such a liability arising is remote.
Burpham Parish Church NOTES TO THE ACCOUNTS
For the Year Ended 31 December 2023
6 Tangible Fixed Assets
| Tangible Fixed AssetsAssets | Church | |||
|---|---|---|---|---|
| Fixtures | Office | Furniture and | ||
| and Fittings | Equipment | Equipment | Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| At 1 January2023 Additions |
15,039 - |
12,520 966 |
38,854 - |
66,413 966 |
| Disposals | - | (1,000) | - | (1,000) |
| At 31 December2023 | 15,039 | 12,486 | 38,854 | 66,379 |
| Accumulated Depreciation | ||||
| At 1 January 2023 | 11,873 | 11,170 | 35,905 | 58,948 |
| Charge forthe year | 1,484 | 765 | 1,542 | 3,791 |
| Disposals | - | (415) | - | (415) |
| At 31 December2023 | 13,357 | 11,520 | 37,447 | 62,324 |
| Net Book Value | ||||
| At 31 December 2023 | 1,682 | 966 | 1,407 | 4,055 |
| At31December2022 | 3,166 | 1,349 | 2,950 | 7,465 |
All tangible fixed assets are held as unrestricted assets.
| 7 | Debtors | ||
|---|---|---|---|
| Amounts duewithin one year | |||
| 2023 | 2022 | ||
| £ | £ | ||
| GiftAid tax recoverable | 20,520 | 74,205 | |
| Prepayments andaccrued income | 1,244 | 67 | |
| 21,764 | 74,272 | ||
| The tax recoverablefrom HMRC at the balance sheet date relates to 2023. | |||
| 8 | Other Creditors | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Amounts due to Guildford Diocese | - | 3,275 | |
| Amounts due to mission partners | 8,958 | 10,235 | |
| Amounts duefrom special collections | - | 7,183 | |
| PAYE / NI and pension | - | 277 | |
| Other liabilities | 10,599 | 6,911 | |
| 19,558 | 27,881 |
The amounts due to Guildford Diocese relate to statutory fees for weddings and funerals in respect of current and some quarters of previous years. As Burpham Church is in vacancy no fees are due
The amounts due to mission partners relate to the tithe set aside to support mission partners but not yet allocated and paid over at the year end.
The amounts due from special collections relate to monies collected by the church specifically to pass on to other charities and are excluded from the income and expenditure of the church. These include the collections at Christmas services.
Burpham Parish Church NOTES TO THE ACCOUNTS
For the Year Ended 31 December 2023
9 Funds
9a Designated Funds
The designated funds comprise the Drop-in Fund, a New Wine Fund, a Major Projects fund for the exceptional gift receipts during the year and the Mission Fund.
The Drop-in Fund records the transactions of the long standing Thursday Drop-in group, which are operated through a separate bank account under the oversight of the Drop-in Committee.
The Mission Fund holds funds which have been designated by the PCC to be used for the wider mission of the worldwide church through the work of mission partners and similar charitable organisations, but which have not been allocated to partners at the year end.
The Administration Fund receives contributions specifically in support of the salary cost of employing a Parish Adminstrator. Funds received in year and associated tax recvoverable are transfered to the unrestricted fund at the year end to offset part of the costs incurred.
The Major Projects Fund was established by the PCC in 2019 to hold funds from the exceptional gift, which the PCC wishes to use to implement significant initiatives that deliver the vision and mission of the church.
Fund movements on designated funds during the year were as follows:
| New | ||||||
|---|---|---|---|---|---|---|
| Wine | Major | Admin | Drop-in | Mission | Total | |
| Projects | Post | Fund | Fund | 2023 | ||
| £ | £ | £ | £ | £ | £ | |
| At1January2023 | 2,500 | 305,343 | - | 4,853 | 4,447 | 317,143 |
| Incoming resources | - | - | 3,240 | 1,355 | - | 4,595 |
| Resources expended | - | (6,148) | (3,240) | (1,057) | (4,447) | (14,892) |
| Transfer (note 6) | - | - | - | - | - | |
| At31December2023 | 2,500 | 299,195 | - | 5,150 | - | 306,845 |
9b Restricted Funds
The restricted funds comprise the Buildings Fund for the reordering and refurbishment of the Church of the Holy Spirit and St Luke's Church. The building fund receives regular planned giving and ad hoc donations.
Burpham Parish Church NOTES TO THE ACCOUNTS
For the Year Ended 31 December 2023
10 Analysis of Net Assets by Fund
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Unrestricted|Designated|Restricted|Total|
|Funds|Funds|Funds|2023|
|£|£|£|£|
|Tangible fixed|assets|4,055|-|-|4,055|
|Debtors|falling|due|in|more than|one year|-|-|-|
|Debtors|falling due|in|less than one year|20,640|-|~|20,640|
|Short term|deposit|and|cash|at|bank|41,976|306,845|-|348,821|
|Creditors falling|due within|one year|(18,433)|-|-|(18,433)|
|48,237|306,845|-|355,082|
----- End of picture text -----
11 Prior Period Comparative SOFA
Statement of Financial Activities for the year ending 31 December 2022
----- Start of picture text -----
|||||||||
|---|---|---|---|---|---|---|---|
|Unrestricted|Designated|Restricted|Total|
|Funds|Funds|Funds|2021|
|£|£|£|£|
|Incoming|Resources|
|Voluntary income|145,721|3,000|2,970|151,691|
|Activities|for generating|funds|14,033|-|-|14,033|
|Interest|receivable|699|-|-|699|
|Church|activities|6,321|430|-|6,751|
|Total|incoming|Resources|166,774|3,430|2,970|173,174|
|Resources|Expended|
|Church|Activities|173,900|18,139|-|192,039|
|Total|Resources|Expended|173,900|18,139|-|192,039|
|Net Incoming|Resources|(7,126)|(44,709)|2,970|(18,865)|
|Transfers|Between|Funds|3,000|(3,000)|-|-|
|Net Movement|in|Funds|(4,126)|(17,709)|2,970|(18,865)|
|Balances|b/f at|1|January 2022|64,961|334,851|23,248|423,060|
|Balances|c/f at 31|December 2022|60835|317,142|26,218|404,195|
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