2021-12-31-accounts

ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2021

Caroline Jackson Independent Examiner 77 Penderyn Way London N7 0EY

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL

CONTENTS

Page 3	Legal and Administrative Information
Page 4	Review of the Year
Page 6	Trustees' (PCC Members') Responsibilities
Page 7	Independent Examiner's Report
Page 8	Statement of Financial Activities
Page 9	Balance Sheet
Pages 10 to 15	Notes to the Financial Statements

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL LEGAL AND ADMINISTRATIVE INFORMATION

LEGAL	AND ADMINISTRATIVE INFORMATION
Parochial Name	St Luke's and St Francis
Correspondent Address	St. Luke's & St. Francis Parochial Church Council,
	St. Luke's Vicarage, Penn Road
	London. N7 9RE.
PCC Members of the Church	During the year the following served as members of the PCC:
The Incumbent	The Revd. John MacKenzie
Assistant Curate	The Revd. Elizabeth Campbell
Associate Priest	The Revd. Martin Wroe
Wardens	Joy Hinson
	Jif Thompson
Adminstrator	Cristina Cooney
Treasurer	Mike Dark
Music Director	Justin Butcher
Assistant Music Director	Rick Leigh (until 27 June 2021)
Deanery Synod Representatives	Mike Dark
	Liz Curran
	Catherine Waithaka
Elected Members	Rebecca Adeyeye (from 16 May to 17 November 2021)
	Julius Ajeigbe (from 16 May 2021)
	Dayo Ashaye
	Iain Cathcart (until 16 May 2021)
	Jacqueline Christian
	Adam Hardy (from 16 May 2021)
	Daniel Northam-Jones
	Grace Pengelly (until 16 May 2021)
	Rosemary Sheldon
	Tom Turner
	Avis Venning (until 16 May 2021)
	Jonathan Ward
Co-opted Members	Sheena Cruse - safeguarding
	Susie Holland - children and young people
	Justin Butcher - music
Charitable Status	St. Luke's Parochial Church Council is registered with the
	Charity Commission
	Registered Charity Number 1128923
Bankers	National Westminster Bank plc,
	490 Holloway Road,
	London. N7 6HN.
Independent Examiner	Caroline Jackson

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ST. LUKE’S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL FINANCE REPORT

The St Luke’s community, like communities up and down the UK, has been impacted in a range of different ways as a result of two years of the Covid 19 pandemic. This is reflected in our accounts which, for the first time in many years, are showing a deficit for the year ended 31 December 2021 of £21,781 (surplus £25,047 in 2020).

Total income for the year ended 31 December 2021 was £164,878, down from £176,697 in 2020. At the same time expenditure has increased from £151,650 to £186,659. This increase in expenditure, coupled with the drop in income, has led to the swing from surplus to deficit between 2020 and 2021.

Overall donations from the congregation were £80,017. This is a reduction from the £99,726 recorded in 2020. The fall is partly explained by a one off extraordinary donation of £10,000 in 2020. It also reflects a reduction in weekly giving from passing the hat since the church building was closed for services at the start of 2021 due to Covid restrictions. Whilst people have returned to the building gradually since April 2021, numbers have not yet returned to pre-pandemic levels. These changes reflect wider society trends where some people have moved away from London and others have not returned to a pattern of regular church attendance after the disruption caused by the pandemic.

Due to ongoing Covid restrictions throughout 2021 lettings income from St Luke’s remained below the levels recorded in 2019. St. Luke’s lettings began to pick up as restrictions eased in the second half of the year and we anticipate an increase in this income in 2022. The longterm rental income from St Francis was not affected. Total lettings income at £70,101 showed a slight increase from the 2020 figure of £63,363.

Expenditure during the year has risen from £151,650 to £186,659. The detail by category, with comparison to the prior year, is given in Note 3 to the accounts.

Notable increases between the two years include the addition of St Luke’s contribution to the cost of hosting a curate in the Parish of c. £8,500 plus an increase in general ministry costs of c. £2,000. There was an increase in costs relating to the St Francis building this year of c. £11,500. Repairs, renewals and maintenance as well as utilities increased c. £6,000 as the church reopened its doors this year. We expect further increases in costs next year due to having the church open for a full twelve months, energy price increases and a full year of curacy costs.

Restricted funds can only be spent on the projects for which the funds have been given. At 31 December 2021 restricted funds stood at £13,888 down from £17,276 in 2020; unrestricted funds (also known as general reserves) stood at £110,571, down from £128,964 in 2020. Opening unrestricted reserves have been restated upwards by a prior year adjustment of £1,909 equating to the balance of the St Luke’s Lettings account which was omitted in error from the 2020 accounts. See note 11.

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ST. LUKE’S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL FINANCE REPORT (continued)

St Luke’s PCC has a policy of maintaining a minimum of £40,000 in unrestricted funds (general reserves) as a contingency against unexpected risks and to maintain adequate cashflow to operate. This figure represents a little under three months of unrestricted expenditure at 2021 levels.

After making appropriate enquiries, the PCC have a reasonable expectation that St Luke's has adequate resources to continue in operational existence for the foreseeable future, and in particular for at least 12 months from the date of the approval of these accounts. For this reason, they adopt the going concern basis in preparing the financial statements.

Financial hardship and challenges have faced many organisations this year. Perhaps we can consider ourselves fortunate to end the year with a deficit of only £21,781. In addition, we benefit enormously from the regular and ongoing donations from Cloudesley, a charity which provides generous support up to twice a year to churches in Islington for building maintenance. We gratefully acknowledge grants of £5,000 in 2021 (£10,700 in 2020) from Cloudesley in note 2b of the accounts. We are also thankful for commitments from Cloudesley of support towards upcoming major repairs and sustainability improvement projects at St Luke’s. We will continue to be mindful of achieving value for money and prudence in all resources expended in delivering the registered charitable objectives of St Luke’s.

The year ahead contains financial challenges for the church, as well as the parishioners and congregation we aim to serve, including rising inflation and the cost of living crisis. We are emerging into a new world as we start to adjust and set our priorities for life after the initial phase of the pandemic and we look forward, with hope, to a full year of the church being open for worship and other activities.

These challenges will require us to consider how we, the people who make St Luke’s St Luke’s, can increase our financial contributions, so that we can meet our day to day, week to week, month to month operating costs. Beyond the c. £25,000 that we need to stand still, if we want to do more, if we want to realise the ambition of the Mission Action Plan then we will need to increase our income from donations and fundraising events as well as looking for new sources of grant funding which supports community work.

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL

TRUSTEES' (PCC MEMBERS') RESPONSIBILITIES

PCC Members responsibilities in relation to the financial statements

Law applicable to charities in England and Wales requires that the trustees prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing these financial statements the trustees are required to:

1. Select suitable accounting policies and apply them consistently

2. Make judgements and estimates that are reasonable and prudent

3. State whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements

4. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business

The trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 1993. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the members of the PCC and signed on their behalf by:

Signature

Revd John MacKenzie Name

29 April 2022 Date

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INDEPENDENT EXAMINERS' REPORT TO THE

ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL

This report on the financial statements of the PCC for the year ended 31 December 2021, which are set out on pages 7 to 13, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 (‘the Regulations’) and s.43 of the Charities Act 1993 (‘the Act’).

Respective Responsibilities of the PCC and the Examiner

As members of the PCC you are responsible for the preparation of the financial statements: you consider that the audit requirement of the Regulations and s.43(2) of the Act does not apply. It is my responsibility to issue this report on those financial statements in accordance with the terms of the Regulations.

Basis of Independent Examiner's Report

My examination was carried out in accordance with the General Directions given by the Charity Commission under s.43(7)(b) of the Act and to be found in the Church guidance, 2006 edition. That examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the financial statements and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent Examiner's Unqualified Statement

In connection with my examination, no matter has come to my attention:

1. which gives me reasonable cause to believe that in any material respect the requirements:

(a) to keep accounting records in accordance with Section 41 of the Act; and

(b) to prepare financial statements, which accord with the accounting records and comply with the requirements of the Act and the Regulations have not been met; or

1. to which in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Caroline Jackson 77 Penderyn Way London N7 0EY

Date

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

INCOMING RESOURCES Voluntary Income from Donors 2a Other Voluntary Income 2b Activities for Generating Funds 2c Investment Income 2d Incoming Resources from Charitable Activities 2e Other Incoming Resources 2f TOTAL INCOMING RESOURCES RESOURCES USED Grants 3a Direct Charitable Expenditure 3b Cost of Generating Funds 3c Support Costs 3d TOTAL RESOURCES USED	Unrestricted Restricted 2021 2020 Funds Funds Restated £ £ £ £ 79,394 623 80,017 99,726 2,800 5,000 7,800 11,370 70,101 - 70,101 63,363 14 - 14 116 6,348 50 6,398 2,120 548 - 548 2 159,205 5,673 164,878 176,697 881 - 881 2,443 157,600 10,561 168,161 132,024 828 - 828 528 16,789 - 16,789 16,655 176,098 10,561 186,659 151,650	Unrestricted Restricted 2021 2020 Funds Funds Restated £ £ £ £ 79,394 623 80,017 99,726 2,800 5,000 7,800 11,370 70,101 - 70,101 63,363 14 - 14 116 6,348 50 6,398 2,120 548 - 548 2 159,205 5,673 164,878 176,697 881 - 881 2,443 157,600 10,561 168,161 132,024 828 - 828 528 16,789 - 16,789 16,655 176,098 10,561 186,659 151,650
NET (OUTGOING) / INCOMING RESOURCES	(16,893) (4,888) (21,781) 25,047
Transfer from unrestricted to restricted funds	(1,500) 1,500 - -
NET MOVEMENTS IN FUNDS	(18,393) (3,388) (21,781) 25,047
Funds Brought Forward at 1 January (as previously stated)	127,055 17,276 144,330 119,283
Prior Year Adjustment 11	1,909 - 1,909 -
Funds Brought Forward at 1 January (restated)	128,964 17,276 146,240 119,283
Funds Carried Forward at 31 December	110,571 13,888 124,459 146,240

Movements in funds and all recognised gains and losses are shown above. All of the charity's operations are classed as continuing.

The notes on pages 9 to 14 form part of these financial statements.

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL BALANCE SHEET AS AT 31 DECEMBER 2021

			2021	2021	2020	2020
					Restated
		Notes	£	£	£	£
Current Assets
Cash at Bank		5	133,569		159,211
Debtors		6	6,451		2,639
			140,019		161,851
Creditors
Amounts falling due	within one year	7	(15,561)		(15,611)
NET CURRENT ASSETS				124,459		146,240
CAPITAL AND RESERVES
General Funds				110,571		128,964
Restricted Funds		4		13,888		17,276
				124,459		146,240
Approved by the members of the PCC and		signed on their	behalf by:
Signature
Name	Revd John MacKenzie
Date	29 April 2022

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

The financial statements of the PCC have been prepared in accordance with the Church Accounting Regulations 2006 and s.43 of the Charities Act 1993 together with applicable accounting standards and the Charities SORP.

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 also unrestricted.

Restricted funds are those funds that must be spent on restricted purposes and details of the funds held and restrictions are provided in note 4.

The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. 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 covenant is recognised only when received. Tax recoverable on Gift Aid donations is recognised when the donation is recognised. 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, and interest entitlements are accounted for as they accrue. Tax recoverable on such income is recognised in the same accounting year.

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 parish share "common fund" is accounted for when due. Any parish share unpaid at 31 December is provided for in these financial statements as an operational, though not a legal liability and is shown as a creditor in the balance sheet.

Current Assets

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

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

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. INCOMING RESOURCES a) Voluntary Income from Donors Planned Giving Collections Gift Days Gift Aid b) Other Voluntary Income Grants: Cloudesley Diocesan contribution to curacy costs Fundraising c) Activities for Generating Funds Church Hall and Rents d) Investment Income Bank Interest e) Incoming Resources from Charitable Activities Ministry & Fees f) Other Incoming Resources Extra Ordinary Income	Unrestricted Restricted TOTAL TOTAL Funds Funds 2021 2020 £ £ £ £ 56,711 - 56,711 59,873 14,436 623 15,060 28,568 - - - - 8,247 - 8,247 11,286
	79,394 623 80,017 99,726
	- 5,000 5,000 10,700 2,800 - 2,800 - - - - 670
	2,800 5,000 7,800 11,370
	70,101 - 70,101 63,363
	70,101 - 70,101 63,363
	14 - 14 116
	14 - 14 116
	6,348 50 6,398 2,120
	6,348 50 6,398 2,120
	548 - 548 2
	548 - 548 2

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

3. RESOURCES USED a) Grants Christian Aid Bishop's Discretionary Fund Islington Giving Discretionary fund Housing Justice Street Link Raising Voices Centre 404 Community Action on Prison Expansion (CAPE) b) Direct Charitable Expenditure Diocesan Quota - Common Fund Curacy costs Worship Sunday School/Youth Club Other Ministry Churchyard Repairs, Renewals & Maintenance Music costs Verger Church Running Expenses - Utilities Church Running Expenses - Cleaning Church Running Expenses - Household Church Running Expenses - Insurance Postage, Printing & Stationery St. Francis Cost of governance Other Expenditure Bank Charges Nightshelter Fund Sustainability Fund Stonework/solar panels fund AV equipment and IT Fund Vestry Fund Light Staging Fund c) Costs of Generating Funds Fundraising and Publicity d) Support Costs Administration Costs Total resources used	Unrestricted Restricted TOTAL TOTAL Funds Funds 2021 2020 £ £ £ £ 381 - 381 260 - - - 325 500 - 500 - - - - 200 - - - 500 - - - 500 - - - 58 - - - 500 - - - 100
	881 - 881 2,443
	85,200 - 85,200 85,200 8,505 - 8,505 - 1,483 - 1,483 379 189 - 189 54 4,770 - 4,770 2,711 8 - 8 174 8,863 - 8,863 5,073 10,400 - 10,400 10,622 600 - 600 80 9,970 - 9,970 7,851 2,410 - 2,410 1,747 817 - 817 705 6,396 - 6,396 6,573 2,529 - 2,529 1,183 13,382 - 13,382 1,914 270 - 270 - 1,428 - 1,428 23 380 - 380 416 - - - 318 - 4,599 4,599 3,600 - 3,600 3,600 - - 2,022 2,022 2,260 - - - 1,141 - 340 340 -
	157,600 10,561 168,161 132,024
	828 - 828 528
	828 - 828 528
	16,789 - 16,789 16,655
	16,789 - 16,789 16,655
	176,098 10,561 186,659 151,650

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4. RESTRICTED FUNDS Sustainability Fund AV equipment and IT Fund Nightshelter Fund Lighting and Staging Fund Stonework and Solar panels Fund Net Zero Fund Vestry Fund	Balance at Transfer Balance at 1 Jan 21 Income Expenditure from General 31 Dec 21 £ £ £ £ £ 6,925 - (4,599) - 2,326 2,740 5,000 (2,022) - 5,718 2,292 - - - 2,292 2,134 50 (340) - 1,844 2,100 50 (3,600) 1,500 50 - 573 - - 573 1,084 - - - 1,084
	17,276 5,673 (10,561) 1,500 13,888

The charity spends all restricted monies that it receives and makes good any deficit on restricted funds from its general unrestricted funds.

Sustainability Fund

Funds received and expended to improve the sustainability of the church

Net Zero Fund

Funds received and expended to assist the church moving to carbon neutrality

AV Equipment and IT Fund

Funds received and expended to enable the church to live stream services

Nightshelter Fund

Funds received and expended to support the work of the Nightshelter project for homeless people that is hosted by St Luke's.

Lighting and Staging Fund

Funds received and expended to upgrade the lighting and staging.

Stonework and solar panels Fund

Funds received and expended to repair the stonework of the south wall and to install solar panels on that side of the church

Vestry Fund

Funds received and expended to upgrade the vestry.

5. CASH AT BANK AND IN HAND St. Luke's Deposit Account St. Luke's Current Account St Luke's Lettings Account	TOTAL TOTAL 2021 2020 Restated £ £ 128,056 155,302 2,000 2,000 3,513 1,909
	133,569 159,211

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

6. DEBTORS Prepayments Accrued Income 7. CREDITORS: AMOUNTS FALLING DUE Accruals Deferred Income Loans due in less than 1 year 8. ANALYSIS OF NET ASSETS BY FUND Current Assets Current Liabilities Liabilities > 1 year	WITHIN 1 YEAR Unrestricted Restricted Funds Funds £ £ 126,131 13,888 (15,561) - - -	TOTAL TOTAL 2021 2020 £ £ 1,200 - 5,251 2,639
		6,451 2,639
		TOTAL TOTAL 2021 2020 £ £ 3,411 3,611 12,150 12,000 - -
		15,561 15,611
		TOTAL TOTAL 2021 2020 Restated £ £ 140,019 161,851 (15,561) (15,611) - -
	110,571 13,888	124,459 146,240

9. STAFF COSTS

Salary and social security costs of £2,990 were paid in 2021 (nil - 2020).

The average number of full time employees in the year was 0.083 (nil - 2020).

No employees had total benefits (excluding pension contributions and employer's National Insurance) in excess of £60,000.

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ST. LUKE'S & ST. FRANCIS PAROCHIAL CHURCH COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. RELATED PARTY TRANSACTIONS

The PCC members received no remuneration in relation to fulfilling their role as trustees.

During the year, payments totalling of £6,625 (£1,750 in 2020, part year) were made to Justin Butcher in connection with the provision of musical services as music director.

Miscellaneous expenses totalling £6,776 (£4,349 in 2020) were paid to 8 (6 in 2020) PCC members during the financial year 2021. These were reimbursements of routine items including maintenance, purchase of IT equipment, charitable donations, youth club/Sunday school, accounting software or other expenses incurred on behalf of the church. These items were agreed in advance and were paid on production of an invoice or receipt.

Donations totalling £15,213 was received in 2021 from 16 PCC members and related parties (£15,645 in 2020).

Payments totalling £8,400 were made in relation to the provision of accommodation for the Assistant Curate, Rev. Elizabeth Campbell. Contributions of £2,800 were received from the Diocese of London towards the cost of this provision.

Vox Holloway (N7 Community Choir) rehearses and performs in St. Luke's. It made donations to St. Luke's totalling £1,599 in 2021 (£1599 - 2020). Sheena Cruse, co-opted member of St. Luke's PCC, was also a trustee of Vox Holloway during the period.

11. PRIOR PERIOD ADJUSTMENT

The 2020 figures have been restated throughout to correct the omission, in error, in 2020 of the St Luke's lettings bank account which at 31 December 2020 had a balance of £1,909. This has therefore increased brought forward funds at 1 January 2021 by £1,909.

The impact on individual balances is shown below. Cash at Bank At 31 December 2020 - as previously stated Prior Year Adjustment At 31 December 2020 - restated Net Current Assets At 31 December 2020 - as previously stated Prior Year Adjustment At 31 December 2020 - restated General / Unrestricted Funds At 31 December 2020 - as previously stated Prior Year Adjustment At 31 December 2020 - restated	£ 157,302 1,909
	159,211
	144,330 1,909
	146,240
	127,055 1,909
	128,964

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