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2021-12-31-accounts

Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2022

ST MARY’S CHURCH , REIGATE

ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE PAROCHIAL CHURCH COUNCIL

for the year ended

31 December 2021

Charity Registration No: 1129140

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2022

INCUMBENT

Vicar The Revd Richard Wilson The Vicarage 76 Church Street Reigate Surrey RH2 OSP

AUDITOR

Jacob Cavenagh & Skeet, Chartered Accountants 5 Robin Hood Lane Sutton Surrey SM1 2SW

BANKERS

HSBC UK Bank Plc 9 The Boulevard Crawley RH10 1UT The Central Board of Finance of the Church of England Senator House 85 Queen Victoria Street London EC4V 4ET Skipton Building Society 43 Church Street Reigate Surrey RH2 0AE National Westminster Bank Plc (Reigate) Southampton Customer Service Centre 23 Brunswick Gate Southampton SO15 2AQ

ALL CORRESPONDENCE TO PRINCIPAL PLACE OF OPERATIONS:

St Mary’s Parish Office St Mary’s Church Centre Chart Lane Reigate Surrey RH2 7RN Tel: 01737 221100

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2022

BACKGROUND

St Mary Magdalene Parochial Church Council (PCC) has the responsibility of co-operating with the incumbent in promoting within the ecclesiastical parish the whole mission of the Church of Christ. The PCC is also responsible for the maintenance of our buildings, which include the historic church of St Mary Magdalene (Reigate Parish Church), our Church Centre, the Heath Church and our staff housing.

The Parochial Church Council is a corporate body (PCC Powers Measure 1956, Church Representation Rules 2006) and is a charity registered with the Charity Commission under registration number 1129140.

MEMBERSHIP

Members of the PCC are either elected by the Annual Parochial Church Meeting in strict accordance with the Church Representation Rules or serve as ex officio members. The PCC can also exercise its right to invite co-opted members as it deems fit.

PCC MEMBERSHIP FOR THE YEAR ENDED 31 DECEMBER 2021

Elected Members

Deanery Synod

Mr P Chesterton Mr P Darwent Mr G Evans Miss E Gunn Mr M Johnson Mr I Nott (to 24 November 2021) Licensed Lay Minister Mrs P Parry

PCC

Mr T Andrew Mrs R Beggs Mrs A Brown Mrs K Cornish Mr A Course (to 26 April 2021) Mrs T Hillsdon (from 26 April 2021) Mrs B Juntunen (from 20 January 2022) Licensed Lay Minister Mrs G Moore Mr A Morgan Mr N Rayner Mr A Rubie Mrs M Wood

Church Wardens

Mr L Jackson Mr T Lumsden (from 26 April 2021) Mrs L Plowman (to 26 April 2021)

Ex Officio Members

Revd R Wison – Vicar & Chair Revd K Capper - Associate Vicar Revd H Fraser - Self Supporting Minister Revd N Griffiths - Associate Vicar Revd E Gilmour - Curate

Hon Secretary

Mrs J Perrett (to 15 November 2021) Miss S Bertlin (from 15 November 2021)

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2021

COMMITTEES

The PCC operates through a number of committees that report to the main PCC meeting from time to time. The PCC members, who are also Trustees for the purpose of charity law, are nominated and elected (other than those holding ex officio positions or who are co-opted) at the Annual Parochial Church Meetings. New members of the PCC are inducted into the workings of the Parochial Church Council through meetings with existing members of the PCC, the churchwardens and the Incumbent. Information in relation to matters to be discussed at PCC meetings is circulated to members prior to each meeting. PCC members, who include the Clergy, Wardens and holders of other offices, are considered to be the Key Management Personnel as they are responsible for directing church affairs. All such personnel give of their time freely and receive no remuneration for their service on the PCC directly from St Mary’s. Details of PCC members’ expenses, other than reimbursements of costs incurred on behalf of the church, and related party transactions are disclosed in Notes 4 and 11 to the financial statements.

The pay of staff is reviewed annually and normally increased in line with the Diocese of Southwark salary and stipend increases. However, in 2021, Diocesan staff did not receive an increment and in consequence neither did St Mary’s staff. All staff are paid at or above the Living Wage Foundation minimum wage.

The following committees supported the work of the PCC during the past year:

Standing Committee

The Standing Committee exists to transact the business of the PCC between meetings and may form the agenda for meetings of the PCC. It consists of the incumbent, the Associate Vicars, the Churchwardens, two deputy churchwardens, the Treasurer and may include other co-opted members. The Standing Committee meets on an ad hoc basis as needs arise. There were 4 meetings of the Standing Committee in 2021.

St Mary’s Global

This committee exists to promote our involvement in the church’s mission across the world. The committee is active in encouraging support for our link Mission Partners (serving God around the world), financially, practically, and through prayer. The Committee seeks to ensure that the financial support for our Mission Partners and other mission organisations is appropriate for their needs within the resources available.

Fabric and Facilities Committee

This committee exists to oversee all repairs, maintenance and building works affecting the church, the church centre and PCC owned housing.

OBJECTIVES AND ACTIVITIES

As a Parish Church within the Church of England's Diocese of Southwark, St Mary's Church (also known as Reigate Parish Church) exists for the benefit of its wider community as well as for those who form part of our week-by-week worshipping community across a number of congregations.

Our vision is to see God changing lives, families, and churches again and again.

Our mission is to make whole life disciples of all ages, to create and support communities of people who worship God with their whole lives, and to model and reproduce this as widely as possible.

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2021

Our strategy is to draw people into intentional apprenticeship to Jesus through:

The work of the church is wide-ranging and despite the challenges of Covid-19 many members of our wider parish community have continued to benefit from the mission and ministry of the church and its members, in a variety of settings and across all age groups.

When reviewing these and other activities, the PCC has had due regard to Charity Commission guidance on public benefit.

The church could not operate without the generous contributions of its staff and its host of volunteers, and we are enormously grateful and indebted to all who contribute in so many ways to the life and health of St Mary's Parish Church with the Heath Church.

ACHIEVEMENTS AND PERFORMANCE

The pandemic has impacted every area of church life, and the life of every member. Crucially, for us as a church, the social impact of the pandemic has severely reduced our levels of connection and as a social organisation. This has impacted our attendance – on Sundays and mid-week – and our levels of connection and volunteering. Time will tell the extent to which we have lost, and gained, people but based as we are on relationships and community, these past two years, have been hard for us.

Despite this we are pleased that in 2021 we have been able to:

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2021

At the APCM in April 2021 there were 508 names on the electoral roll (503 previous year). Of these 38% live within the parish, and 62% outside the parish.

FINANCIAL REVIEW OF THE YEAR

In our budget projections for 2021 we anticipated that, before charging depreciation, our General Fund expenditure would exceed income by £17,744. However, as was the case in 2020, the budget was largely overtaken by the impact of Covid 19 measures which restricted our activities.

In the event 2021 income exceeded expenditure, excluding depreciation, by £58,549 The reason for this stronger than budget financial performance was that while planned giving was in line with budget, one off donations exceeded budget by £15,000 and expenditure was well below budget with a number of headings significantly under budget as the church and centre were closed, planned events did not take place and there were savings in staff costs as staff vacancies went unfilled. This surplus is added to the General fund Reserve, but Capital Expenditure of £21,000 is deducted and a transfer of £10,000 to the Church Centre Reserve was made leaving the General Fund Reserve at £200,581 at 31 December 2021.

Income from donors – Note 2(a)

Compared with 2020, our planned Giving reduced by £27,940 or 6.2% with donors ending standing orders for various reasons exceeding new starters. A Stewardship campaign took place at the end of the year, the results of which went some way towards redressing this reduction, but most of the benefit of which will not be felt until 2022. We again received a number of very generous single donations. In total these one off donations totalled £40,202,slightly less than last year but well in excess of previous years. We have ceased holding collections and running an envelope scheme. but we now have a contactless donation machine in church. However, the income from this is only a small fraction of the sum previously given in cash or envelopes. Almost 300 regular donations from standing orders etc are currently being received, many from couples. Our high level of tax efficient giving has been maintained with £99,322 being received by the General Fund as a result of Gift Aid tax refunds. We are enormously grateful to God for this provision and to everyone who has contributed so generously.

Income from church activities – Note 2(b)

Net income from the Church Centre bookings at £21,283, were much higher than in 2020 but less than half of the pre-pandemic figure of some £50,000pa. Lettings of the Church at £5,761 were also much lower than before the pandemic.

This heading also includes rental of church residential properties, where the rentals of £18,600 were received. Net income from fees for weddings, funerals, etc was £5,498.

Other Income-Note 2(d)

We received £14,261 under the Government’s Coronavirus Job Retention Scheme in respect of furloughed staff.

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2021

Expenditure – Grants – Note 3

Payments to Mission Partners amounted to £48,720, little changed from 2020.In addition we gave £6,543 to Tear Fund. Full details of all donations, totalling £70,201 are shown at Note 14 to the accounts. The PCC keeps under regular review the amounts given to mission partners and other donations.

Expenditure – Other - Note 3

In September 2020 the PCC agreed to increase the Diocesan share for 2021 by 1.3% or £3,084 to £241,000. For 2022, the PCC and the Diocese have agreed a further increase of 2% to £245,820, which exceeds by £91,900 the cost, including overheads, as advised by the Diocese of our own 2 full time clergy posts. Also included under the heading Diocesan Share is £20,033 in respect of the part-time services of one additional clergy, in addition to the 2 full-time clergy posts mentioned above.

Staff costs have decreased significantly from £173,902 to £146,632. The principal reasons for this were that some office and support staff were not replaced immediately after they left employment and because of staff maternity leave.

As in 2020, the costs of many church activities, building maintenance and utilities, and children’s and youth work were much less than normal because of the Covid restrictions.

Balance Sheet

The Church Centre is included in the Balance Sheet at its cost of £1,857,261. Other Church and Church Centre fixtures and equipment have a book value of £169,642. Capital expenditure of £28,384 was incurred in 2021, including completion of the church audio visual project with a total cost of £33,573, of which £19,806 was spent in 2021, and £7,384 on the Heath Church audio visual project.

As in previous years we have used a property valuation website to provide an internal valuation of our 4 residential properties, for Balance Sheet purposes. The value of these properties has increased in 2021 by 7.4% to £1,762,200.

2022

We have decided to budget for expenditure, before depreciation, to exceed income by £26,989, as we expect many expense headings, particularly staff costs, to increase substantially as we recover from the Covid restrictions. We cannot at present foresee these costs being totally matched by increases in income. We do however start the year with a high level of reserves (see below) and it seems wise this year to use in part these reserves

Peggy Caffyn-Tees Legacy

The total sum received in 2013/14 was £359,696. Approximately one third of this, £121,589, is restricted specifically for the use of the Heath Church. £7,384 was spent in 2021 on replacing and improving the audio-visual system in the church. The balance of the Heath Church’s share now stands at just £2,080. The other two thirds, initially £238,107, is held on trust by the PCC for an indefinite period with the income only to be used to maintain Peggy’s family graves, and for fabric work on the Church including maintenance of the organ. This sum has been fully invested in 4 CCLA funds as shown in Note 5(b) and a gain of £42,103 was achieved in 2021, bringing the value invested up to £372,735. Income in 2021 from the sum invested amounted to £11,018. During 2021

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2021

£1,830 was spent. The balance carried forward and available for use in future years now stands at £42,034.

RISK MANAGEMENT

The PCC has considered the major risks to which the church is exposed including safeguarding children and vulnerable adults (in which regard the PCC follows the Diocese of Southwark Safeguarding procedures in full and has two experienced safeguarding officers to assist it), disability discrimination, health and safety and fire protection. The comprehensive Risk Register is reviewed annually by the PCC. We continue to ensure that we meet GDPR requirements.

The PCC considers the principal financial risk facing the Church is that expenditure is not matched by income. This risk is managed by the preparation of regular monthly financial statements and an annual budget which is regularly reviewed and updated.

FUNDRAISING

The Church’s fundraising activities comprised a Stewardship campaign which included teaching on Christian giving together with a leaflet setting out our needs and inviting a response. The majority of the Church’s income is derived from standing orders and oneoff donations from Church members. The hiring of the Church and Church Centre also provide a source of income. The Church does not employ outside fundraisers. The Church complies with the principles of the Charities Governance Code.

FUTURE PLANS

As the winter of covid passes and we emerge from the seclusion and isolation of these hard few years, we are encouraged by the gradual signs of movement, growth and renewal appearing all around us. We are mindful that it may yet take time to regain our momentum as a community, but we are determined to make sure that our church is reenvisioned for a new chapter of life together post-pandemic.

Our primary focus at this time is rebuild community and deepen spiritual life - drawing together newer and more established members, deepening our sense of a shared life in Christ and our common mission.

Drawing on the teaching and growth of the past few years, we will be looking for deeper change and transformation in our discipleship, especially as we face a new set of challenges in our daily lives post-pandemic.

Alongside the emphasis on community and spiritual depth, it is vital that we strengthen the underlying foundations of our church life - our prayer life, our worship and teaching, our finances (and our financial systems and finance team), our staffing team, our operational systems and safeguarding structures, and our use of technology.

In line with our strategic priorities, we want to:

Reaching out to a world in need

Drawing people into a new identity in Christ

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Parochial Church Council of St Mary’s Church Reigate ANNUAL REPORT FOR 2021

Developing a culture of discipleship

Loving one another as family

Giving ourselves away for the sake of others

RESERVES POLICY

It is PCC policy to hold in unrestricted reserves the equivalent of at least one month’s budgeted expenditure. It is also our policy to hold sums in reserve for building works arising from the Quinquennial inspection of the Church and for refurbishment of the Church Centre.

The closing balance of £200,581 on Unrestricted General Reserve on 31[st] December 2021 represents 3.6 months budgeted expenditure in the year 2022. This sum will provide a very helpful buffer if, as is possible, the church recovers only slowly from the effects of the Covid 19 measures. The reserve for Quinquennial repairs at 31[st] December 2021 stands at £21,530 and the church Centre reserve at £50,000.

INVESTMENT POLICY

The charity (through its trustees) has the power to invest in such stocks, shares, investments and property as deemed fit. The charity has made such investments, principally in relation to the Peggy Caffyn-Tees legacy (see page 7), to generate income and has made no social investments.

On behalf of the PCC on April 2022

Revd Richard Wilson Vicar

Page 9

Parochial Church Council of St Mary’s Church Reigate STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (the PCC) are responsible for preparing the trustees report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the year end and of its incoming resources and resources expended during that year. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper 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 2011 and the Church Accounting Regulations 2006. 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.

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Parochial Church Council of St Mary’s Church Reigate INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ST MARY’S CHURCH REIGATE

Opinion

We have audited the financial statements of the Parochial Church Council of St Mary’s Church, Reigate (the “PCC”) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the PCC in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the PCC members’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the PCC’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the PCC members with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, including the PCC members’ report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Parochial Church Council of St Mary’s Church Reigate INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ST MARY’S CHURCH REIGATE

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the PCC and its environment obtained in the course of the audit, we have not identified material misstatements in the PCC members’ report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of the PCC members

As explained more fully in the PCC members’ responsibilities statement, the PCC members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the PCC members are responsible for assessing the PCC’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the PCC members either intend to liquidate the PCC or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

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Parochial Church Council of St Mary’s Church Reigate INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ST MARY’S CHURCH REIGATE

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity, we identified that the principal risks of noncompliance with laws and regulations related to employment, financial reporting legislation and health and safety regulations and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.

We determined that the principal risks were related to management bias in accounting estimates, valuation of property, presentation of separately disclosed items, government assistance – furlough income and management override of controls.

In response to the risks identified we designed procedures which included, but were not limited to challenging significant accounting estimates such as valuation of property, agreeing financial statement disclosures to underlying supporting documentation, testing the calculation of claims made under the Coronavirus Job Retention Scheme, identifying and testing journal entries, reviewing PCC meeting minutes and evaluating the charity’ internal controls.

Auditor’s responsibilities for the audit of the financial statements (continued)

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the PCC members, as a body, in accordance Part 4 of the charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the PCC members’ those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the PCC and the PCC members as a body, for our audit work, for this report, or for the opinions we have formed.

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Parochial Church Council of St Mary’s Church Reigate INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ST MARY’S CHURCH REIGATE

Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountants

5 Robin Hood Lane Sutton Surrey SM1 2SW

Dated: .........................

Jacob Cavenagh & Skeet is eligible for appointment as auditor of the PCC by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006

Page 14

Parochial Church Council of St Mary’s Church Reigate STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2021

Unrestricted
Restricted
End't
Total
Unrestricte
d
Restricted
End't
Total
Funds
Funds
Funds
2021
Funds
Funds
Funds
2020
£
£
£
£
£
£
£
£
575,482
201
0
575,683
615,989
1,130
0
617,119
65,138
2,104
0
67,242
49,634
2,491
0
52,125
640
11,315
0
11,955
876
11,713
0
12,589
16,261
0
0
16,261
12,469
1,000
0
13,469
657,521
13,620
0
671,141
678,968
16,334
0
695,302
620,150
4,006
0
624,156
643,023
8,861
0
651,884
620,150
4,006
0
624,156
643,023
8,861
0
651,884
0
0
43,914
43,914
0
0
20,306
20,306
37,371
9,614
43,914
90,899
35,945
7,473
20,306
63,724
Note
s
Income
Donations and legacies
2(a)
Church activities
2(b)
Investments
2(c)
Other income
2(d)
Total income
Expenditure on Church Activities
3
Total expenditure
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds 7,384
-7,384
0
0
4,892
-4,892
0
0
121,000
0
0
121,000
68,329
0
0
68,329
165,755
2,230
43,914
211,899
109,166
2,581
20,306
132,053
3,895,459
63,746
344,343
4,303,548
3,786,293
61,165
324,037
4,171,495
Other recognised gains/(losses):
Gains/(losses) on revaluation
of tangible fxed assets
Net movement in funds
Funds b/fwd at 1 January 2021

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Parochial Church Council of St Mary’s Church Reigate STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2021

Funds c/fwd at 31 December 2021 4,061,214 65,976 388,257 4,515,447 3,895,459 63,746 344,343 4,303,548

All income arises from the continuing activities of the PCC. The PCC had no recognised gains or losses other than those dealt with in the Statement of Financial Activities. The notes on pages 19 to 27 form part of these accounts.

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Parochial Church Council of St Mary’s Church Reigate BALANCE SHEET 31 December 2021

Fixed assets
Notes		 2021
£
2020
£
3,789,103
3,660,897
388,257
344,343
4,177,360
4,005,240
68,634
36,071
298,338
290,807
366,972
326,878
(28,885)
(28,570)
338,087
298,308
4,515,447
4,303,548
4,061,214
3,895,459
Tangible fxed assets
5(a)
Investment assets
5(b)
Current assets
Debtors
6
Cash at bank & in hand
Liabilities: Amounts falling due within
one year
Creditors
7
Net current assets
Net assets
8
Funds
Unrestricted reserves
Restricted reserves 65,976
63,746
Endowments
9		 388,257
344,343
4,515,447
4,303,548

Approved by the Parochial Church Council on April 2022 and signed on its behalf by:

Revd Richard Wilson Vicar

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Parochial Church Council of St Mary’s Church Reigate STATEMENT OF CASH FLOWS for the year ended 31 December 2021

Cash (used in)/provided by operating activities (see
below)
Cash fows from investing activities
Interest and dividends received
Payments to acquire tangible fxed assets
Payments to acquire fxed asset investments
Proceeds on sale of fxed asset investments
Cash (used in)/provided by investing activities
Net cash (outfow)/ infow
Cash and cash equivalents at 1 January 2021
Cash and cash equivalents at 31 December 2021
Cash (used in)/provided by operating activities
Net (expenditure)/ income
Interest and dividends received shown in investing
activities
Depreciation
(Gain)/loss on disposal of fxed asset investments
Other (gains)/ losses on investments
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Cash (used in)/provided by operating activities		 2020
£
23,960
11,955
(28,384)
(100,455)
100,455
(16,429)
7,531
290,807
298,338
90,899
(11,955)
21,178
-
(43,914)
(32,563)
315
23,960		 2020
£
70,503
12,589
(19,358)
-
-		 2020
£
70,503
(6,769)
63,734
227,073		 (6,769)
290,807
63,724
(12,589)
18,805
-
(20,306)
30,605
(9,736)
70,503

Page 18

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

1. Accounting Policies

The Parochial Church Council is a corporate body (PCC Powers Measure 1956, Church Representation Rules 2006) and is a charity registered with the Charity Commission (number 1129140). Its principal place of operations is: St Mary’s Parish Office, St Mary’s Church Centre, Chart Lane, Reigate, Surrey RH2 7RN.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102).

The financial statements have been prepared under the historical cost convention subject to the revaluation of residential properties and investments. 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 nor those that are informal gatherings of Church members.

The financial statements are presented in pounds sterling rounded to the nearest £1

The PCC meets the definition of a public benefit entity under FRS102.

Going concern

The trustees consider that there are no material uncertainties about the Church’s ability to continue as a going concern.

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 monies received by the PCC which have been given for a particular purpose.

Endowment funds are funds, the capital of which must be maintained; use of the income arising from investment of the endowment varies according to individual trust purposes.

Income

Donations and legacies

Donations and legacies (including collections and income tax recoverable under Gift Aid) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured.

Other income

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

Income from investments

Dividends are accounted for when receivable, interest is accrued.

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 19

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

Grants

Grants relating to revenue expenditure are recognised in income in the periods in which the related costs are incurred.

1. Accounting policies (continued)

Expenditure

Expenditure is accrued as soon as a liability is incurred. Support and governance costs are included in expenditure on church activities

Church activities

Most mission grants are payable monthly and are accounted for in the month in respect of which they are payable. Other mission grants are accounted for when a decision to make payment has been taken.

The Diocesan parish share is accounted for when payable.

Fixed Assets

Land and buildings and church and church centre fittings

Consecrated and benefice property is excluded from the accounts by s10 (2) (a) of the Charities Act 2011. Residential properties used by the PCC in undertaking its activities (i.e. staff housing) have been included in tangible fixed assets at their estimated market value. The Church Centre has been included at its cost at the year end. No depreciation has been provided on land and buildings as the PCC has adopted a policy of maintaining properties to a standard that prolongs their lives and enhances their residual values. No value is placed on moveable church furnishings held by the churchwardens on a special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property. All maintenance expenditure incurred during the year on consecrated or benefice buildings and on church and church centre fittings continues to be written off as expenditure in the Statement of Financial Activities (SOFA). Fixtures and equipment costing more than £500 are capitalised and depreciated over their useful life which varies from 4 years to 40 years depending on the asset.

Investments

Investments are valued at market value at 31 December. The Statement of Financial Activities includes the net gains and losses on revaluations and disposals throughout the year and are shown as a component of net income.

Current Assets

Gift Aid recoverable and other debtors are included at the amount due. Prepayments are valued at the amount prepaid. Cash at bank and in hand includes cash and sums placed on deposit available on demand.

Creditors and provisions

Creditors and provisions are recognised where the Church has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Critical accounting estimates and judgements

In the application of the church’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated

Page 20

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

2 Income

Unrestricted
Funds
£
Restricte
d
Funds
£
(a)
Donations and legacies
Planned giving and gifts
467,168
-
Income tax recovery (Gift Aid)
99,322
201
Legacies
-
-
Ofertories
1,678
-
Heath Church
4,346
-
Community Building Project
-
-
Other income from donors
2,968
-
___
_
575
,482
201
(b)
Church activities
Rental income
45,644
-
Youth income
4,341
-
Girls’ Brigade income
-
2,104
Hospitality and events
4,096
-
Sundry income
11,057
-
_
__
65
,138
2
,104
(c)
Investments
Interest and Dividends
640
11
,315
(d)
Other income
Government Grant - furlough
14,261
-
Other Grants
2000
-
__
__
16
,261
-
_____
_
Total income
657
,521
13
,620		 Total
2021
Unrestricted
Funds
£
467,168
500,420
99,523
108,263
-
-
1,678
3,190
4,346
2,745
-
-
2,968
1,371
_
__
575
,683
615
,989
45,644
36,560
4,341
170
2,104
-
4,096
3,500
11,057
9,404
_
_
67
,242
49
,634
11
,955
876
14,261
10,469
2000
2,000
_
_
16
,261
12
,469
_____
671
,141
678
,968		 Restricte
d
Funds
£
-
445
-
-
-
-
685
_
1
,130
-
-
2,491
-
-
_
2
,491
11
,713
-
1,000
_
1
,000

16
,334		 Restricte
d
Funds
£
-
445
-
-
-
-
685
_
1
,130
-
-
2,491
-
-
_
2
,491
11
,713
-
1,000
_
1
,000

16
,334		 Total
2020
£
500,420
108,708
-
3,190
2,745
-
2,056
____
617
,119		 Total
2020
£
500,420
108,708
-
3,190
2,745
-
2,056
____
617
,119

36,560
170
2,491
3,500
9,404
______
52
,125
12
,589
10,469
3,000
______
13
,469

695
,302

Page 21

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

3
Expenditure
Unrestricted
Funds
£
Church activities
Grants (See Note 14):
Mission Partners
48,720
Other mission and donations
21,481
___
70,201
Other:
﷐Diocesan Quota
261,033
Fees to Diocese
5,494
Admin and support staf
87,972
Training and Clergy expenses
6,453
Staf housing
9,464
Music ministry
19,915
Youth & children’s ministry
65,112
Girls’ Brigade expenses
-
Repairs and cleaning
9,296
Insurance: Church and Centre
12,538
Other church activities
14,686
Administrative expenses
21,173
Utilities & Heath Church expenses
10,175
Depreciation
21,178
Governance costs: Audit fees
5,460
____
Total expenditure
620
,150
4
Staf costs
2021
£
Wages and salaries
138,840
Social security costs
4,028
Pension costs
3
,764
146
,632		 Restricte
d
Funds
£
-
-
_
-
-
-
-
-
-
-
-
2,176
1,830
-
-
-
-
-
-
_
4
,006
2020
£
162,519
6,360
5
,023
173
,902		 Total
2021
Unrestricte
d
Funds
£
48,720
49,384
21,481
18,761
__
___
70,201
68,145
261,033
257,924
5,494
5,428
87,972
93,208
6,453
12,207
9,464
10,783
19,915
37,894
65,112
58,931
2,176
-
11,126
10,660
12,538
13,037
14,686
16,992
21,173
17,564
10,175
16,225
21,178
18,805
5,460
5,220
_
____
624
,156
643
,023		 Restricte
d
Funds
£
-
-
_
-
-
-
-
-
-
-
-
3,969
1,565
-
1,023
-
2,304
-
-
_
8
,861		 Total
2020
£
49,384
18,761
__
68,145
257,924
5,428
93,208
12,207
10,783
37,894
58,931
3,969
12,225
13,037
18,015
17,564
18,529
18,805
5,220
_
651
,884
2021 2020
Average number of employees (full time equivalents) during year was: 6 6
Average number of employees during year was: 1
11 1

Page 22

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

4 Staff Costs (continued)

Payments made to third parties on behalf of PCC members in the year were £4,056 (2020: £3,917) These were mainly in respect of housing, books and Internet access. These payments were received by or on behalf of 8 (2020: 7) PCC members. No employee received employee benefits of more than £60,000 (2020: Nil).

5
Fixed assets for use by the PCC
Freehold/
Leasehol
d
Property
£
(a)
Tangible fxed assets
Cost or valuation
At 1 January 2021
3,498,461
Additions
-
Disposals
-
Revaluation of properties
121,000
_
At 31 December 2021
3,619,461
Depreciation
At 1 January 2021
-
Charge for the year
-
Disposals
-
_
At 31 December 2021
-
Net book Value
At 31 December 2021
3,619,461
At 31 December 2020
3,498,461		 Fixtures
&
Equipmen
t
£
264,816
28,384
-
-
_
293,200
102,380
21,178
-
_
123,558
169,642
162,436		 Total
£
3,763,277
28,384
-
121,000
____
3,912,661		 Total
£
3,763,277
28,384
-
121,000
____
3,912,661
102,380
21,178
-
___
123,558
3,789,103		 102,380
21,178
-
___
123,558
3,660,897

Tangible fixed assets comprise the following freehold/leasehold land and buildings held as assets by the PCC:

These properties are held in trust for the PCC of St Mary’s and the full maintenance and insurance costs are the responsibility of the PCC.

The parish has a 20% interest in this property, the remaining 80% being owned by the diocese. The PCC is responsible for 20% of the maintenance and insurance costs.

iii) Church Centre, Chart Lane, Reigate

The land and buildings are owned by the PCC who have responsibility for maintaining and insuring the property.

Residential properties are included in the Balance Sheet at their estimated market value using a property valuation website. The Church Centre is included at its cost.

5(b Investments Market
 Market
) value value

Page 23

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

31 December 31 December
2021 2020
£ £
Graveyard Trusts (CBF Investment Fund Shares &
Deposits)
Buckle 1,444 1,264
Davidson 257 225
Godfrey 1,099 961
Keay 925 925
Riddock 468 409
Seeley 200 200
Yglesian 118 102
______ ______
4
,511		 4
,086
Parish Trusts (COIF Charities Investment Fund Shares)
Grice 3,743 3,272
Stennett 3,784 3,308
Maseres 3,484 3,045
______ ______
11
,011		 9
,625
Cafyn-Tees Endowment Fund (CBF Church of England
Income Funds)
CBF Investment Fund 91,174 84,976
CBF Global Equity Fund 96,632 94,778
CBF Property Fund 91,708 71,877
CBF Fixed Interest Fund 79,001
CBF UK Equity Fund 93,221
__ __
372
,735		 330
,632
Total investments 388,257 344,343

The historical cost of the Graveyard and Parish Trust investments is not known and cannot be traced as these investments were donated or acquired many years ago. The historical cost of the Caffyn-Tees Endowment Investments is £238,107.

6 Debtors 2021 2020
£ £
Gift Aid recoverable 55,580 22,545
Other debtors 9,902 5,733
Prepayments 3,152 7,793
_ _
68,634 36,071
7 Liabilities: amounts falling due within one year 2021 2020
£ £
Other creditors 28,885 28,310
Deferred Income - 260
__ __
28,885 28,570

Page 24

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

8 Analysis of net assets by fund

2021 Unrestricte Unrestricte Restricte Restricte Endowment Endowment Endowment
d Funds d Funds Funds 2021
£ £ £ £
Fixed assets 3,789,103 388,257 4,177,360
Current assets 296,566 70,406 366,972
Current liabilities (24,455) (4,430) (28,885)
____ __ __ __
4,061,214 65,976 388,257 4,514,447
2020 Unrestricte Restricted Endowment
d Funds Funds Funds 2020
£ £ £ £
Fixed assets 3,660,897 - 344,343 4,005,240
Current assets 263,132 63,746 - 326,878
Current liabilities (28,570) - - (28,570)
____ __ __ __
3,895,459 63,746 344,343 4,303,548
9 Analysis of fund movements during the year
2021 Bal b/fwd Income Expenditur Other gains Transfers Bal c/fwd
1 Jan e / (losses) 31 Dec
2021 £ £ £ 2021
£ £ £
Unrestricted
reserves:
General Fund 173,032 657,521 -598,972 0 -31,000 200,581
Capital Reserve 3,660,897 -21,178 121,000 28,384 3,789,103
Church Centre
Reserve 40,000 10,000 50,000
Quinquennial Reserve 21,530 21,530
3,895,459 657,521 -620,150 121,000 7,384 4,061,214
Restricted
reserves:
Graveyard Trusts 3,300 86 3,386
Parish Trusts 6,551 283 6,834
Cafyn-Tees Legacy -
St Mary's 32,846 11,018 -1,830 42,034
Cafyn-Tees Legacy -
Heath 9,536 -72 -7,384 2,080
Easter Project 5,428 5,428
Girls' Brigade Reserve 6,085 2,305 -2,176 6,214
63,746 13,620 -4,006 0 -7,384 65,976

Page 25

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

Endowments:
Graveyard Trusts 4,086 425 4,511
Parish Trusts 9,625 1,386 11,011
Cafyn-Tees – St Marys 330,632 42,103 372,735
344,343 43,914 388,257
Total Funds 4,303,548 671,141 -624,156 164,914 0 4,515,447
2020 Bal b/fwd Income Expenditur Other Transfers Bal c/fwd
1 Jan e gains / 31 Dec
2020 £ (losses) £ 2020
£ £ £ £
Unrestricted
reserves:
General Fund 132,748 678,968 (624,218) - (14,466) 173,032
Capital Reserve 3,592,015 - (18,805) 68,329 19,358 3,660,897
Church Centre Reserve 40,000 - - - - 40,000
Quinquennial Reserve 21,530 - - - - 21,530
____ __ ____ ___ ___ ____
3,786,293 678,968 (643,023) 68,329 4,892 3,895,459
Restricted reserves:
Graveyard Trusts 3,216 84 - - - 3,300
Parish Trusts 6,274 277 - - - 6,551
Spearhead - - - - - -
Commun Bldg Project - - - - - -
Easter Project 4,766 1,685 (1,023) - - 5,428
Cafyn-Tees - St Marys 23,181 11,230 (1,565) - - 32,846
Cafyn-Tees - Heath 16,610 122 (2,304) - (4,892) 9,536
Girls’ Brigade Reserve 7,118 2,936 (3,969) - - 6,085
Heath Church Annexe - - - - - -
Vicarage refurbishment - - - - - -
__ ___ ___ __ ___ ____
61,165 16,334 (8,861) - (4,892) 63,746
Endowments:
Graveyard Trusts 3,892 - - 194 - 4,086
Parish Trusts 9,044 - - 581 - 9,625
Cafyn-Tees - St Marys 311,101 - - 19,531 - 330,632
____ ___ ____ ___ ____ ___
324,037 - - 20,306 - 344,343
____ ___ ____ ___ ___ ___
Total Funds 4,171,495 695,302 (651,884) 88,635 - 4,303,548

Unrestricted Funds comprise:

(a) General Reserve , which contains that part of the PCC’s income which is freely available for spending.

Page 26

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

Restricted Funds comprise:

Endowment Funds comprise:

(a) The Graveyard Trusts , which are permanent endowments, the income from which is used for maintenance of named graves.

A transfer of £10,000 (2020: Nil), was made from the General Fund to the Church Centre Reserve to cover anticipated future costs relating to the upkeep of the Church Centre and grounds. £21.000 (2020: £14,466) was transferred from the General Fund to the Capital Reserve representing capital expenditure on audio visual and IT equipment during the year. £7,384 was transferred from the Caffyn-Tees Fund (Heath) to the Capital Reserve Fund in respect of replacing and improving the audio visual system in the Heath Church.

£4,892 was transferred from the Caffyn-Tees Fund (Heath) to the Heath Church Annexe Fund in 2020 in respect of the purchase of chairs for the Heath Church.

10 Taxation

The charity is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objects.

11 Related Party Transactions

PCC members are considered to be related parties and the total employee benefits received by them are set out in note 4 above. PCC members are not remunerated, except as detailed in Note 4.

During the year, donations totalling £66,104 (2020: £81,320) were received from PCC members.

Trustees and individual liability insurance is covered under the Public Liability section of our church insurance. Mr & Mrs J Brown paid rent of £9,600 (£2,400 part of 2020) for the use of a church property.

12 Operating leases

The total future minimum lease payments under non-cancellable operating leases are payable:

2021 2020
£ £

Page 27

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

Within one year
After one year but within fve years
The operating lease charges for the year were:
Hire of plant and machinery		 1,272
4
,452
5
,724
1
,774		 679
-
679
1
,297		 679
-
679

13 Defined contribution scheme

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost and charge represent contributions payable by the charity to the fund or to separate schemes in which employees are members and amounted to £3,764 (2020: £5,023).

14 Mission Grants

Mission Partner Commitments:
Wyclife Bible Translators – P & J Fresard
T & C Morris
M & E Lyth
Tearfund – B & S Clark
Africa Inland Mission – P & A Guinness
CMS – H Kisakye
Sparkfsh – Schools Youth Worker
Mission & Evangelism – Global:
Tearfund
K Madanat
Fairtrade
Bible Society
CMS Mid Africa
Mission & Evangelism – Local & Social Outreach:
Community Debt Advice
Renewed Hope Trust (including Winter Night Shelter)
Welcare
BBC Children in Need
Royal British Legion
Loveworks
MacMillan Cancer Support		 2021
12,911

8,039
8,039
12,910

6,821
__
48
,720

6,000

6
,000
6,543
____
6
,543
2021
6,000
1,250
415
240		 2020
12,911
8,039
8,039
1,638
11,936
6,821
__
49
,384
6,000

6
,000
2,500
102
296
611
____
3
,509
2020
6,000
36
100

Page 28

Parochial Church Council of St Mary’s Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

Centrepoint
St Bede's & Reigate Parish Church Primary School
Other
Mission & Evangelism – Support for the wider church:
Open Doors International
Total Mission Grants from unrestricted funds		 459
8
,376
562
_
562
£ 70
,201		 17
3,099
-
9
,252
_
68
,145

Page 29