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:
- reaching out to a world in need,
- drawing people into a new identity in Christ,
- developing a culture of discipleship,
- loving one another as family and
- giving ourselves away for the sake of others.
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:
- Refine and develop a strategy for the future as a PCC and senior leadership
- Provide a rhythm of weekly worship throughout the last year, both online and in person services across different settings, enabling as much engagement as possible given the fluctuating restrictions
- Install new technical equipment to enable us to livestream gatherings to a high quality
- Welcome new members into our church family
- Grow the number of small groups meeting mid-week – in person and online
- Maintain and develop our youth and children’s work on Sundays and right across the week
- Express and develop our approach to pastoral care, such as for those in need, grieving, and living with dementia, including the giving away of many thousands of meals to people in our community and church family
- Relaunch a new vision for ‘St Mary’s Global’ as we partner with others across the world to fulfil our wider mission and begin a journey of exploring what local mission and social outreach looks like post-pandemic here in Reigate
- Steadily increase the opening up of the centre while managing risk appropriately
- See new people becoming disciples and welcoming them to baptism and reaffirmation of faith
- Send two members of our church off to be trained for ministry (Ian Nott and Philippa Parry), welcome a new Reader to our team (Brenda Juntunen), and to provide our Curate (Erin Gilmour) with a wide range of training opportunities in preparation for future ministry
- Successfully meet our financial obligations, continuing to manage our finances well, and further strengthening our reserves despite a drop in income
- Update some of our financial systems and introduced ‘Tap and Go’ giving in our services
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Parochial Church Council of **St Mary’s Church** Reigate ANNUAL REPORT FOR 2021
- Maintain staff morale and resilience as we have responded creatively to changes due to absence, maternity leave, illness and restrictions
- Appoint new members of staff in our administration and operations teams
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**
- Develop a renewed strategy for social engagement in our community
- Continue to develop our online and digital presence
- Encourage one another as whole-life disciples on our various frontlines
- Strengthen our relationships with our local schools as places of service and mission
## **Drawing people into a new identity in Christ**
- Welcome and induct new members into church life
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Parochial Church Council of **St Mary’s Church** Reigate ANNUAL REPORT FOR 2021
## **Developing a culture of discipleship**
- Mature our discipleship pathway, and leadership pipeline, strengthening the process for how we help each other to mature in Christ
- Deepen our reliance on Word and Spirit as the foundation of our shared church life, across the whole church, as we navigate cultural and social change in the world around us.
- Develop our small groups - increasing leadership, engagement, transformation, and participation
## **Loving one another as family**
- Strengthen our later life ministries giving them higher profile in our church life
- Continue to invest in reaching and building up the next generation of younger people and families
- Build on the momentum of being involved in the Summer Satellites festival to impact our young people and grow our ministries to parents and families
- Continue to build up our pastoral care and community life as a church family
## **Giving ourselves away for the sake of others**
- Further embed and develop our partnerships with others in mission overseas
- Create momentum for church planting in the coming years
- Develop our relationships with other Churches and networks as we seek to grow resilient disciples in our secular age
- Seek out possible partnership with a church in an area of social need
## **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
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## 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:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
- 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 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:
- give a true and fair view of the state of the PCC’s affairs as at 31 December 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of PCC members’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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_
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## 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||
|||
_Page 15_
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.
_Page 16_
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**
_Page 17_
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:
- i) **63 Chart Lane, 9 Lymden Gardens and Flat 11 Monks Court, Reigate**
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.
- ii) **3 St Clair Close, Reigate**
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.
- (b) **Capital Reserve** , which represents the value of invested income (principally in freehold and leasehold properties) which would become available for spending when realised.
- (c) **Church Centre Reserve** , an unrestricted reserve, which comprises income set aside by the PCC to meet future refurbishment costs relating to the church centre.
- (d) **Quinquennial Reserve** , which contains income set aside by the PCC to meet the costs of repairs to the church buildings identified by the Quinquennial (five-yearly) inspection.
_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:**
- (a) **Graveyard Trusts** , which contain income from endowment funds to maintain named graves.
- (b) **Parish Trusts** , which contain income from endowment funds for specific purposes e.g. care of the poor in the Parish.
- (c) **Easter Project Fund** , which contains gifts restricted for use in this community project, which is currently under review.
- (d) **Caffyn-Tees Fund (St Mary's),** which contains income from the endowment fund to be used to cover expenditure relating to the fabric of St Mary's church, maintenance of the organ and upkeep of family graves.
- (e) **Caffyn-Tees Fund (Heath),** which contains a legacy which can only be used for Heath Church general purposes.
- (f) **Girls’ Brigade Reserve** , which contains gifts restricted for use by the Girls’ Brigade.
## **Endowment Funds comprise:**
(a) **The Graveyard Trusts** , which are permanent endowments, the income from which is used for maintenance of named graves.
- (b) **The Parish Trusts** , which are permanent endowments, the income from which is used for specified purposes e.g. for the care of the poor in the Parish.
- (c) **Caffyn-Tees Trust (St Mary's),** which is a permanent endowment, the income from which is to be used to cover expenditure relating to the fabric of St Mary's church, maintenance of the organ and upkeep of family 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_