**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: - Worship and prayer; learning about the Gospel; and developing their knowledge and trust in Jesus - Provision of pastoral care for people living in the parish and - Mission and outreach work. _**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. _**Page 13**_ **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. _**Page 14**_ **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: - examine the accounts under section 145 of the Charities Act, - to follow the procedures laid down in the general Directions given by the Charity Commission (under section - 145(5)(b) of the Charities Act, and - to state whether particular matters have come to my attention. ## **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, - accounting records were not kept in accordance with section 130 of the Charities Act or - the accounts do not accord with the accounting records 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**_