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2022-12-31-accounts

St Paul’s Church, Honiton

Financial Statements of the Parochial Church Council

For the year ended 31 December 2022

Charity number 1128921

St Paul’s Church, Honiton - 1128921

Financial statements of the Parochial Church Council

For the year ended 31 December 2022

Page

1 – 2 PCC Annual Report
3 Statement of Financial Activities
4 Balance Sheet
5 Incoming Resources
6 Resources Expended
7 – 15 Notes to the Financial Statements
16 Independent Examiner’s Report

St Paul’s Church Honiton – 1128921

Trustees Annual Report

for the year ended 31 December 2022

Administrative Information

St. Paul’s Church is situated in the centre of Honiton and is part of the Diocese of Exeter within the Church of England. The correspondence address is St Paul’s Parish Office, 99 High Street, Honiton, Devon EX14 1PG.

Aim and Purposes

St Paul’s Parochial Church Council (PCC) has the responsibility of co-operating with the incumbent, the Revd Preb Sue Roberts, in promoting, in the ecclesiastical parish, the whole mission of the church – pastoral, evangelical, social and ecumenical. It also has maintenance responsibilities for St Michael’s Lodge and the Mackarness Hall in Honiton and the graveyards at St Michael’s, Honiton and at Monkton.

Structure, Governance and Management

St Paul’s Church is a registered charity (no. 1128921) and the members of the PCC are also the trustees. The PCC is a body corporate (PCC Powers Measure 1956, Church Representation Rules 2006). The PCC members are responsible for making decisions on all matters of general concern and importance to the parish including deciding on how the funds of the PCC are to be spent. PCC members are elected by members of the congregation, who are on the electoral roll of the church, at the Annual Parish Church Meeting (APCM) in accordance with the Church Representation Rules. During the period 1 January 2022 until the date this report was signed, the following served as members of the PCC:

Ex-officio members: Incumbent and Chairman Rev. Preb. Sue Roberts Churchwarden and Vice-Chairman Belinda (Lyn) Thatcher (until APCM 2023) Secretary Deborah Chapman Deanery Synod Representatives Felicity Stead Suzanne Henville Elected members: Treasurer Emily Wilkinson (until APCM 2023) Joanna Foreman (until APCM 2024) Duncan Geale (until APCM 2025) Jan Geale (until APCM 2025) Suzanne Henville (until APCM 2023) Catherine Lee (until APCM 2023) Jane Scriven (until APCM 2022) Felicity Stead (until APCM 2023) Emily Thornhill (until February 2022)

The PCC works through the following working groups:

Mission working group – which organises fund raising events for mission work both at home and overseas. Finance and Stewardship working group – which oversees the general finance dimension of the work at St Paul’s by monitoring income and expenditure, budgeting and co-ordinating the annual review of Christian Stewardship of money through planned giving. Eco Church working group – having registered St Paul’s with Eco Church in November 2018, the working group is looking at ways in which we can better care for God’s earth in the areas of Worship and Teaching, Management of Church Buildings and Land, Community and Global Engagement and Lifestyle.

Clerestory Windows working group – a group formed at the end of the year to plan and raise funds for the urgent repair work required to the clerestory windows and resulting damage to the masonry of the church, particularly in the Narthex and on the west side of the church.

These working groups are responsible to the PCC and report back to it regularly with minutes of their deliberations being received by the full PCC and discussed as necessary.

Objectives and Activities

The PCC is committed to enabling as many people as possible to take part in worship and other activities at our church and to become part of the parish community at St. Paul's. Our services and worship aim to put faith into practice through prayer and scripture, music and sacrament. There were 92 parishioners on the Electoral Roll.

When planning our activities for the year, the incumbent and the PCC considered the Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. In particular, we try to enable people to live out their faith as part of our parish community through:

Page 1

St Paul’s Church Honiton – 1128921

Trustees Annual Report

for the year ended 31 December 2022

Achievements and Performance

Worship, Prayer and Outreach

The PCC are keen to offer a range of services during the week and over the course of the year that our community find both beneficial and spiritually fulfilling. All are welcome to attend our services, details of which can be found on the parish website: www.honitoncofe.org.

As well as our regular services, we enable our community to celebrate and thank God at the milestones of the journey through life. Through baptism we thank God for the gift of life, in marriage public vows are exchanged with God’s blessing and through funeral services friends and family express their grief and give thanks for the life which is now complete in this world and to commend the person into God's keeping.

Other areas of outreach include Coffee Mornings on Saturdays and Tuesdays, Lent Lunches (organised by the Mission and Evangelism Committee) and the Prayer Chain. The clergy and lay members of the church visit the hospital and local retirement and nursing homes on a regular basis.

Together with the other parishes of the Mission Community, we again ran a Rest and Refreshment tent at the Honiton Show which was very well received by the public. The Parish Office continues to be staffed for 3 mornings each week.

In January 2019 St Michael’s Church was transferred to the care of the Diocese of Exeter. The PCC’s current responsibility is to carry out weekly inspections, reporting to the Diocese as necessary.

Financial Review

Total income increased to £86,120 and planned giving increased by £2,112. Income included unrestricted legacies of £4,896. Total expenditure was £148,591 which included a total of £31,388 spent on streaming equipment and creating a new garden area for the Mackarness Hall, funded by legacies received in previous years. A further £14,657 of funds restricted for the maintenance of the church was spent on making safe the Narthex area after a masonry fall. The net result for the year, after including losses on investments, was a loss of income over expenditure of £66,308. The balance, held in unrestricted funds and carried forward at 31 December, decreased to £266,048 with total funds amounting to £284,077.

We have been very blessed to have received generous, unrestricted legacies of £305,878 over the last six years. As well as enabling us in 2019 to refurbish the chapel and install a new sound system for the church, over the last two years we have also used this source of funding to set up the outdoor cafe (total cost £1,307), purchase equipment to enable streaming of worship, including weddings, funerals and other events (total cost £12,554) and create the Mackarness Hall Community Garden (cost so far £23,236).

The PCC was able to pay its 2022 Common Fund assessment of £41,603 in full.

Reserves Policy

It is PCC policy to (if possible) maintain a balance on unrestricted funds which equates to approximately six months unrestricted payments, to cover any emergencies that may arise. In 2013 the PCC agreed “to maintain a balance on unrestricted funds (if possible) which equates to approximately four months unrestricted payments with the hope that, when finances allowed, it would be possible to return to a balance of six months reserves for unrestricted funds.

It is PCC policy to invest with CCLA in a CBF Church of England Deposit Account and CBF Church of England Investment Funds. Investments are revalued at the end of each financial year.

Appointments

The following were appointed and served as sidespersons during the year: Julia Beaman, Mollie Bolton, Val Devereux, Val Fosse, Jill Hamilton, Suzanne Henville, Nicky and Meraniah Katene, and Belinda Thatcher.

Westcotts was appointed as Independent Examiner.

Volunteers

We would like to thank all our volunteers who work so hard on behalf of the church. In particular we would like to mention our churchwarden Lyn Thatcher who has worked tirelessly on our behalf, and everyone that has enable the church to continue to grow and flourish as we recover from the effects of the pandemic.

Approved by the PCC on 23 May 2023 and signed on their behalf by

The Revd. Preb. Susan Roberts (PCC chairman)

Page 2

St Paul’s Church Honiton – 1128921

Statement of Financial Activities

for the year ended 31 December 2022

Unrestricted Designated Restricted Endowment Total 2021
Funds Funds Funds Funds Funds Total Funds
Note £ £ £ £ £ £
Income and Endowments from: 2
Donations and Legacies 48,442.73 311.69 48,754.42 42,710.66
Income from Charitable Activities 21,239.00 21,239.00 21,836.00
Other Trading Activities 4,955.26 8,993.50 13,948.76 4,080.73
Investments 1,422.21 2.11 93.32 1,517.64 865.93
Other Income 660.00 660.00 872.60
Total Income and Endowments 76,719.20 8,995.61 405.01 86,119.82 70,365.92
Expenditure on: 3
Raising Funds 2,324.22 4,388.21 6,712.43 4,280.49
Expenditure on Charitable Activities 114,997.95 3,693.32 23,187.13 141,878.40 91,760.64
Total Expenditure 117,322.17 8,081.53 23,187.13 148,590.83 96,041.13
Gains/(losses) on Investment 7b (3,225.93) (611.19) (3,837.12) 4,116.00
Net Income/(Expenditure) (43,828.90) 914.08 (22,782.12) (611.19) (66,308.13) (21,559.21)
Transfers
Gross transfers between Funds
Other Recognised Gains/(losses)
Net Movement in Funds (43,828.90) 914.08 (22,782.12) (611.19) (66,308.13) (21,559.21)
Reconciliation of Funds
Total Funds brought forward 309,876.62 514.70 34,778.67 5,215.23 350,385.22 371,944.43
Total Funds carried forward 266,047.72 1,428.78 11,996.55 4,604.04 284,077.09 350,385.22

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

The 2021 comparative statement of financial activities is shown in note 6.

Approved by the PCC on 23 May 2023 and signed on their behalf by

The Revd. Preb. Susan Roberts (PCC Chairman)

The notes on pages 5 – 15 form part of these accounts

Page 3

St Paul’s Church, Honiton – 1128921

Balance Sheet

for the year ended 31 December 2022

Note
Fixed Assets
Investments
7b
Current Assets
Debtors
9
Cash at Bank and in Hand
Liabilities
Creditors: Amounts falling due in one year
10
Net Current Assets less Current Liabilities
Total Net Assets less Liabilities
Represented by
Unrestricted
General Fund
5a
Designated
Choir Fund
5a
Mackarness Hall
5c
Restricted
Flower Fund
5a, 5b
Narthex Refurbishment
5a
Organ Fund
5a
St Paul's Maintenance
5d
Youth Fund
5a
Endowment
St Michael's Churchyard
7b
Funds of the Church
31/12/2022
31/12/2021
£
£
47,814.63
51,651.75
47,814.63
51,651.75
6,330.09
3,831.97
247,287.90
303,858.10
253,617.99
307,690.07
(17,355.53)
(8,956.60)
236,262.46
298,733.47
284,077.09
350,385.22
266,047.72
309,876.62
176.21
174.10
1,252.57
340.60
658.64
782.30
523.24
516.98
6,112.66
6,965.94
4,158.43
25,976.37
543.58
537,08
4,604.04
5,215.23
284,077.09
350,385.22

The notes on pages 5 - 15 form part of these accounts.

Page 4

St Paul’s Church, Honiton – 1128921

Incoming Resources

for the year ending 31 December 2022

2
Income and Endowments
2a Donations and Legacies
Planned Giving
Loose Plate Collections
Collections Special Services
Giving through Wall Safe
One-off Donations
Tax Recoverable on Gift Aid
Legacies
One-off Grants
2b Income from Charitable Activities
Team Fees for Burials
Team Fees exc. Burials
Church Lettings
Crypt Lettings
Forecourt Lettings
Lodge Letting
2c Other Trading Activities
Fund Raising - Mission
Fund Raising - Church
Coffee Mornings
Craft Club
Mackarness Hall Lettings
2dInvestments
Interest and Dividends
2e Other Income
Printing/photocopying Recharges
Total Income and Endowments
Unrestricted
Designated
Restricted
Endowment
Total
2021
Funds
Funds
Funds
Funds
Funds
Total Funds
£
£
£
£
£
£
25,990.16



25,990.16
23,878.56
1,824.51



1,824.51
4,557.92
504.22



504.22

1,432.54

311.69

1,744.23
916.84
4,242.14



4,242.14
2,996.69
7,042.89



7,042.89
6,963.46
4,896.27



4,896.27

2,510.00



2,510.00
3,397.19
48,442.73

311.69

48,754.42
42,710.66
10,417.00



10,417.00
10,491.00
2,358.00



2,358.00
4,241.00
834.00



834.00
499.00
975.00



975.00

55.00



55.00
5.00
6,600.00



6,600.00
6,600.00
21,239.00



21,239.00
21,836.00
656.39



656.39
1,064.93
645.31



645.31
454.63
3,140.07



3,140.07
465.17
513.49



513.49
107.00

8,993.50


8,993.50
1,989.00
4,955.26
8,993.50


13,948.76
4,080.73
1,422.21
2.11
93.32

1,517.64
865.93
1,422.21
2.11
93.32

1,517.64
865.93
660.00



660.00
872.60
660.00



660.00
872.60
76,719.20
8,995.61
405.01

86,119.82
70,365.92

Page 5

St Paul’s Church, Honiton – 1128921

Resources Expended

for the year ended 31 December 2022

Unrestricted Designated Restricted Endowment Total 2021
Funds Funds Funds Funds Funds Total Funds
£ £ £ £ £ £
3 Expenditure
3a Raising Funds
Kitchen Running Costs 522.17 522.17 46.13
Mackarness Hall Costs 2,281.59 2,281.59 393.12
Mackarness Hall Utility Bills 2,106.62 2,106.62 2,004.31
St Michael's Lodge costs 1,512.05 1,512.05 1,808.72
Event Catering Costs 28.21
Fundraising Expenditure 290.00 290.00
2,324.22 4,388.21 6,712.43 4,280.49
3b Expenditure on Charitable Activities
Common Fund 41,603.00 41,603.00 41,712.00
Mission Payments 656.39 656.39 1,064.93
Staff Salaries 7,200.19 3,693.32 10,893.51 11,071.47
Clergy Expenses 4,320.00 4,320.00 4,320.00
Cost of Services 1,371.25 1,371.25 1,195.37
Church Running Expenses 8,395.03 302.40 8,697.43 5,316.37
Organist Fees 705.00 705.00 640.00
Choir
Flowers 131.10 131.10 16.00
Other Outreach 8.08 8.08 1,499.08
Insurance 4,493.14 4,493.14 4,296.56
St Paul's Maintenance 22,404.67 22,404.67 360.00
Health and Safety Inspection Fees 1,774.06 1,774.06 1,228.45
Refurbishment Costs 23,236.04 23,236.04 63.00
St Paul's Utility Bills 9,183.87 9,183.87 5,585.16
St Paul's Forecourt 220.00 220.00 145.00
St Michael's Churchyard 6,722.62 6,722.62 6,281.27
Monkton Churchyard 350.00 350.00 1,150.00
Administration 715.82 715.82 234.02
Phone Bills/broadband 442.37 442.37 372.69
Printing and Photocopying Costs 1,658.02 1,658.02 2,975.72
Bank Charges 221.61 221.61 194.64
Professional Fees 1,706.96 348.96 2,055.92 1,913.92
Miscellaneous Expenses 14.50 14.50 124.99
114,997.95 3,693.32 23,187.13 141,878.40 91,760.64
Total Expenditure 117,322.17 8,081.53 23,187.13 148,590.83 96,041.13

Page 6

St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

4. Staff Costs

Staff Salaries

£10,893.51

During the year the PCC employed 2 administrators and 2 cleaners, none of whom were paid more than £10,000 in total.

Temporary organists were employed during the year.

No member of the PCC claimed traveling or subsistence expenses. Reclaimed expenses by PCC members for costs incurred on behalf of the church amounted to £457.25. Planned giving from members of the PCC amounted to £2,563.20.

5a. Deposit Accounts

The PCC’s deposit account is held within the CBF Church of England Funds.

CBF Funds
General
Narthex Refurbishment
St Paul's Maintenance
Organ
Youth
Choir
Flowers
2021
Net
Income
Interest
Interest
2022
transfers
(restricted)
(unrestricted)
£
£
£
£
£
£
17,535.47
22,875.44


489.22
40,900.13
516.98


6.26

523.24
17,976.37
(21,817.94)



(3,841.57)
6,965.94
(926.40)

73.12

6,112.66
537.08


6.50

543.58
174.10



2.11
176.21
745.66
(131.10)

7.44

622.00
44,451.60


93.32
491.33
45,036.25

5b. Flower Fund Current Account (Restricted)

In addition, to funds held for flowers in the CBF Deposit Account, the flower fund current account is managed by the Churchwarden with permission of the PCC.

Receipts
Donations
Interest
Payments
Flowers etc.
Net Movement in Funds
Total Funds brought forward
Total Funds carried forward
2022
2021
£
£







36.64
36.64
36.64
36.64

Page 7

St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

5c. Mackarness Hall Account (Designated)

See note 7a(ii).
Income
Donations
Lettings
Interest
Total Income
Expenditure
Utility Bills
Salaries
Insurance
Running Costs/Maintenance
Total expenditure
Net Income /(Expenditure) Resources before transfer
Gross transfers - in
Gross transfers - out
Net Movement in Funds
Total Funds brought forward
Total Funds carried forward
2022
2021
£
£

225.00
8,993.50
1,989.00

8,993.50
2,214.00
(2,106.62)
(2,004.31)
(3,693.32)
(2,370.00)


(2,281.59)
(393.12)
(8,081.53)
(4,767.43)
911.97
(2,553.43)



911.97
(2,553.43)
340.60
2,894.03
1,252.57
340.60

Page 8

St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

5d. St Paul’s Maintenance CBF Deposit Account (Restricted)

The St Paul’s Maintenance Fund comprises a National Savings Bond with the value of £8,000.00 and funds held in the CBF Deposit Account as shown below.

Income
Giving through floor safe
Other donations
One-off Grants
Fundraising Events
Interest
Total Income
Expenditure
General maintenance
Electrical repairs/rewiring
Masonry fall
Architect fees
Total Expenditure
Net Income /(Expenditure) Resources
before transfer
Gross transfers - in
Gross transfers - out
Net Movement in Funds
Total Funds brought forward
Total Funds carried forward
Summary
National Savings 7b
CBF Deposit Account 5a
11c
2022
2021
£
£
311.69
145.88

100.00





13.52
311.69
259.40
(593.89)
(360.00)
(6,879.18)

(14,307.60)

(348.96)
(22,129.63)
(360.00)
(21,817.94)
(100.60)



(21,817.94)
(100.60)
17,976.37
18,076.97
(3,841.57)
17,976.37
8,000.00
8,000.00
(3,841.57)
17,976.37
4,158.43
25,976.37

Page 9

St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

6. Comparative Statement of Financial Activities as at 31 December 2021

Income and Endowments from:
Donations and Legacies
Income from Charitable Activities
Other Trading Activities
Investments
Other Income
Total Income and Endowments
Expenditure on:
Raiding Funds
Expenditure on Charitable Activities
Total Expenditure
Net Gains/(losses) on Investment
Net Income/(Expenditure)
Other Gains/(losses)
Gross Transfers between Funds
Other Recognised Gains/(losses)
Net Movement in Funds
Reconciliation of Funds
Total Funds brought forward
Total Funds carried forward
Unrestricted
Designated
Restricted
Endowment
Total
2020
Funds
Funds
Funds
Funds
Funds
Total Funds
£
£
£
£
£
£
42,039.78
225.00
445.88

42,710.66
41,532.00
21,836.00



21,836.00
16,617.00
2,091.73
1,989.00


4,080.73
5,558.03
847.75
0.09
18.09

865.93
1,052.04
872.60



872.60
8.00
67,687.86
2,214.09
463.97

70,365.92
64,767.07
1,883.06
2,397.43


4,280.49
6,742.29
88,061.69
2,370.00
1,328.95

91,760.64
92,578.88
89,944.75
4,767.43
1,328.95

96,041.13
99,321.17
3,460.38


655.62
4,116.00
1,848.98
(18,796.51)
(2,553.34)
(864.98)
655.62
(21,559.21)
(32,705.12)











(18,796.51)
(2,553.34)
(864.98)
655.62
(21,559.21)
(32,705.12)
328,673.13
3,068.04
35,643.65
4,559.61
371,944.43
404,649.55
309,876.62
514.70
34,778.67
5,215.23
350,385.22
371,944.43

Page 10

St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

7. Fixed Assets for use by the PCC

7a . Tangible Fixed Assets

It has not been possible to ascribe a historical cost to the properties held by the PCC. A current market valuation of the properties held by the PCC cannot be obtained without incurring unreasonable expense.

(i) The freehold land and buildings comprise St Michael’s Lodge which was acquired from Combe Settled Estate or Richard Marker sometime between 1873 and 1901. The PCC took out a mortgage of £26,000 in 2000 (now fully repaid) to refurbish St Michael’s Lodge to a sufficient standard for rental.

(ii) Exeter Diocesan Trust is Custodian Trustee of the Mackarness Hall and the Rector and Churchwarden are the Managing Trustees of this property, which, on 28 March 2010, reverted back to the PCC from East Devon District Council.

(iii) Land gifted by Mr Marker in 1990 is for use as a car park at St Michael’s Church.

7b. Investment Fixed Assets

1177 shares in the CBF Church of England Investment Fund
223 shares in the CBF Church of England Investment Fund
(St Michael's)
National Savings Bond (maintenance)
CBF Deposit Account 115002029D
Total market value
Market Value
Unrealised
Market Value
31/12/2021
gains/(losses)
31/12/2022
£
£
£
27,526.15
(3,225.93)
24,300.22
5,215.23
(611.19)
4,604.04
8,000.00

8,000.00
10,910.37

10,910.37
51,651.75
(3,837.12)
47,814.63

8. Analysis of Net Assets by Fund

Fixed Assets for Church use
Investment Fixed Assets
Current Assets
Current Liabilities
Balances 31 December 2022
Unrestricted
Designated
Restricted
Endowment
Total
2021
Funds
Funds
Funds
Funds
Funds
Total Funds
£
£
£
£
£
£






35,210.59

8,000.00
4,604.04
47,814.63
51,651.75
245,127.42
4,494.02
3,996.55

253,617.99
307,690.07
(14,290.29)
(3,065.24)


(17,355.53)
(8,956.60)
266,047.72
1,428.78
11,996.55
4,604.04
284,077.09
350,385.22

Page 11

St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

9. Debtors
Debtors
Mackarness Hall
General Fund
10. Creditors
Creditors
Mackarness Hall
Flower Fund
General Fund
11. Funds
11a.Unrestricted Funds
General Fund
2022
2021
£
£
Designated
411.00

Unrestricted
5,919.09
3,831.97
6,330.09
3,831.97
2022
2021
£
£
Designated
1,225.58

Restricted

16.00
Unrestricted
16,129.95
8,940.60
17,355.53
8,956.60
At
Gains and
At
31/12/2021
Income
Expenditure
Transfers
(Losses)
31/12/2022
£
£
£
£
£
£
309,876.62
76,719.20
(117,322.17)

(3,225.93)
266,047.72
309,876.62
76,719.20
(117,322.17

(3,225.93)
266,047.72

General funds

These funds are available for the general furtherance and objectives of the PCC.

11b.Designated Funds
Choir Fund
Mackarness Hall
At
Gains and
At
31/12/2021
Income
Expenditure
Transfers
(Losses)
31/12/2022
£
£
£
£
£
£
174.10
2.11



176.21
340.60
8,993.50
(8,081.53)


1,252.57
514.70
8,995.61
(8,081.53)


1,428.78

Designated funds

Choir Fund - These funds are designated for use by the Choir. Mackarness Hall - These funds are designated for the running of the Mackarness Hall.

Page 12

St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

11c. Restricted Funds

Flower Fund
Narthex Refurbishment
Organ Fund
St Paul’s Maintenance
Youth Fund
At
Gains and
At
31/12/2021
Income
Expenditure
Transfers
(Losses)
31/12/2022
£
£
£
£
£
£
782.30
7.44
(131.10)


658.64
516.98
6.26



523.24
6,965.94
73.12
(926.40)


6,112.66
25,976.37
311.69
(22,129.63)


4,158.43
537.08
6.50



543.58
34,778.67
405.01
(23,187.13)


11,996.55

Restricted funds

Flower Fund – Funds received and held specifically for the provision of flowers in St Paul’s. Narthex Fund – Funds received and held specifically for the upkeep of the Narthex. Organ Fund – Funds received and held specifically for the upkeep of the organ.

St Paul’s Maintenance – Funds received and held specifically for the maintenance of St Paul’s. Youth Fund - Funds received and held specifically for the provision of youth services.

11d. Endowment Funds

St Michaels’s Churchyard At
Gains and
At
31/12/2021
Income
Expenditure
Transfers
(Losses)
31/12/2022
£
£
£
£
£
£
5,215.23



(611.19)
4,604.04
5,215.23



(611.19)
4,604.04

Endowment funds

To be applied in accordance with the Exeter Diocesan Board of Finance.

12. Accounting Policies

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011 and in accordance with the Church Accounting Regulations 1997 as amended by the Church Accounting (Amendment) Regulations 2006.

The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the PCC’s ability to continue.

Disclosure exemptions

The PCC has taken advantage of the exemption in FRS102 from the requirement to produce a cashflow statement because it is a small charity.

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St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

12. Accounting Policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Funds

General funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC. Funds designated for a particular purpose by the PCC are shown as unrestricted in the accounts.

The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body or 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.

Income tax recoverable on Gift Aid donations is accrued in the accounting year to which it is applicable.

Grants and legacies to the PCC are accounted for 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.

Other Income

Rental income from the letting of church premises is recognised when the rental is due.

Income from Investments

Dividends are accounted for when due and payable. Interest entitlements are accounted for as they accrue. Tax recoverable on such income is recognised in the same accounting year.

Gains and Losses on Investments

Realised gains or losses are recognised when investments are sold.

Unrealised gains or losses are accounted for on revaluation of investments at 31 December.

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St Paul’s Church, Honiton – 1128921

Notes to the Financial Statements

for the year ended 31 December 2022

12. Accounting Policies (continued)

Resources Used

Grants

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC.

Activities Directly Relating to the Work of the Church

The Diocesan Common Fund is accounted for when paid. Any Common Fund unpaid at 31 December but certain to be paid in the following year, is provided for in these accounts as an operational (though not a legal) liability and is shown as a creditor in the Balance Sheet.

Fixed Assets

Consecrated Property and Movable Church Furnishings

Consecrated and beneficed property for any kind is excluded from the accounts by s96(2) of the Charities Act 1993.

Movable church furnishings held by the Rector and Churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted as inalienable property unless consecrated. They are listed in the church’s inventory which can be inspected (at any reasonable time). For inalienable property acquired prior to 2005 there is insufficient cost information available and therefore such assets are not valued in the accounts. Items acquired since 1 January 2005 are capitalised and depreciated in the accounts over their currently anticipated useful economic life (initially over 10 years) on a straight-line basis.

All expenditure incurred in the year on consecrated or beneficed buildings, individual items under £500 or on the repair of movable church furnishings acquired before 1 January 2005 is written off.

Other Fixtures, Fittings and Office Equipment

Equipment used within the church premises is depreciated on a straight-line basis over 4 years. Individual items of equipment with a purchase price of £500 or less are written off when the asset is acquired. Equipment purchased for the Mackarness Hall is not depreciated and the cost fully recognised in the year of purchase.

Investments

Investments are shown at market value at 31 December.

Current Assets

Amounts owing to PCC at 31 December in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncollectible.

Short-term deposits include cash held on deposit either with the CBF Church of England Funds or at the bank.

Page 15

St Paul’s Church, Honiton – 1128921

Independent Examiner’s Report to the Trustees of St Paul’s Church, Honiton

for the year ended 31 December 2022

I report to the trustees on my examination of the financial statements of St Paul’s Church, Honiton for the year ended 31 December 2022.

Respective Responsibilities of the PCC and the Examiner

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is my responsibility to:

Basis of this Report

My examination was carried out in accordance with 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

In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in, any material respect,

I have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.

N Smy ACA Independent Examiner Westcotts Chartered Accountants Queens House New Street Honiton Devon EX14 1BJ

Dated: 25 May 2023

Page 16