ST MARY'S CHURCH, REIGATE ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE PAROCHIAL CHURCH COUNCIL for the year ended 31 December 2023 Charity Registration No: ll29l40 Parochial Church Council of St Mar￿S Church F2eigate ANNUAL REPORT FOR 2023 INCUMBENT Vicar The Revd Feichard Wilson The Vicarage 76 Church Street Reigate Surrey r4H2 OSP AUDITOR Jacob Cavenagh & Skeet, Chartered Accountants S Robin HoLThI Lane Sutton Surrey SMI 2SW BANKERS HSBC UK Bank PIC 9 The Boulevard Crawley RHIO IUT The Central Board of Finance of the Church of England Senator House 85 Queen Victoria Street London EC4V 4ET Skipton 8uilding Society 43 Church Street Reigate Surrey RH2 OAE National Westminster Bank PIC (Redhilll 39 Station Road Redhill Surrey RHI IQN ALL COFIRESPONDENCE TO PRINCIPAL PLACE OF OPERATIONS: St Mary's Parish Office St Mary's Church Centre Chart Lane Reigate Surrey RH2 7RN Tel.. 01737 221100 Parochial Church Council of St Mar￿S Church Reigate ANNUAL REPORT FOR 2023 BACKGROUND St Mary Magdalene Parochial Church Council IPCCI has the reswnsibility of co-operating with the incumbent in promoting wthin the ecclesiastical parish thewhole 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 IReigate Parish Church). our Church Centre. the Heath Church and our staff housing. The Parochial Church Council is a corporate tKKly {PCC Powers Measure 19S6. Church Representation Rules 20061 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 offficio members. The PCC can also exercise its right to invite co-opted members as it deems fft. PCC MEMBERSHIP FOR THEYEAR ENDED 31 DECEMBER 2023 Elected Members Deanery Sync Ex Officio Member5 Revd R Wilson-vicar 8 Chair Revd B Forbes- Associate Vicar Ifrom 11.09231 Revd K Capper- Self Supporting Minister evd H Fraser-self Supporting Minisrer Revd N Griffiths- Associate Vicar Ito i1.0923} Miss S Bertlin (from 24.04.231 Mrs V Booth (from 24.04.231 Mr P Chesterton (to 24.04.231 Mr P Darwent (to 24.04.231 Mr C Evans Miss E Gunn (to 24.04.231 Mr M Johnson (to 24.04.231 Mrs P Parry- Licensed Lay mini￿er Mrs N Peck (from 24.04.231 Mr A Prestwood (from 24.04.23) Hon Secretary Miss S Bertlin pcc Mr T Andrew Mrs R Beggs Mrs A Brown (to 24.04.23} Mr I Capper (from 24.04231 Mrs H Chesterton Ifroffl 24.04.23) Mr M Hetherington (to 24.04.231 MrsT Hillsdon Mrs D Jackson (from 24.04.23} Mrs B Juntunen Mrs E Lyth Mrs G Moore (to 24.04.231 Mr A Morgan Mr N Pettitt Mrs M Wood (to 24.04231 Churchwardens Mr Ljackson Mr T Lumsden Ito 24.04231 Mr N Rayner (from 24.04.23} Parochial Church Council of St Mar￿S Church Reigate ANNUAL REPORT FOR 2023 COMMr￿EES The PCC operates through a number of committees that reFrf)rt 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 Churchwarden& 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 freety and receive no remuneration for their service on the PCC direct￿ from St Mar￿& Details of PCC members. expenses, other than reimbursements of costs incurred on behalf of the church. and related party transactions are disclosed in the financial statement& The pay of staff is reviewed annually and normally increased in line with the Diocese of Southwark salary and stipend increase& 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 ofthe PCC. It consists of the incumbent,the Associate Vicar& the Churchwardens two deputy churchwardens, the Treasurer and may include other co-opted member& The Standing Committee meets on an ad hoc basis a5 needs arise. There were 6 meetings of the Standing Committee in 2023. St Ma￿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 worldl, financially. practically, and through prayer. The Committee seeksto 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 Committ This committee exists to oversee all repair& maintenance and building works affecting the church, the church centre and PCC owned housing. Heath Church Committee Thi5 committee exists to oversee and plan the mission and ministry of the Heath Church Community under the responsibilityof one of the Clergytearn. Safeguarding Committee This group meets to make sure that the church is compliant with its safeguarding obligations and follows through on all incidents or issues that relate to safeguarding St Mar￿$ Local This is our newest committee and wascreated to explore and developthe mission, evangelism and social outreach ofthe church. OBJEcfivES AND ACTIVITIES As a Parish Church within the Church of England's DIc￿eSe of Southwark St Ma￿5 Church (also known as Reigate Parish Church) existsfor the benefit of its wider community as well as for those who form part of oUrw￿k-by-Week worshipping community across a number of congregation& Page 4 Parochial Church Council of St Mary's Church Reigate ANNUAL REPORT FOR 2023 Our vision Iwhat we hopeto see) is to see God changing lives, families. and churches again and again. Our mission (what we seek to dol is to make whole life disciples of all ages, to create and support communities of people who worship Gcd with their whole Itves, and to model and Teproduce this as widely as F)ossible. Our strategy (how we seek to do this) 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 a5fami￿. and giving ourselves away for the sake of other& Given this, the workof thechurch iswide-ranging. Members ofourwider parish community have continued to benefitfrom the mission and ministry ofthe church and its members in a variety of settings and across all age group& When reviewing these and other aaivities, the PCC has had due regard to Charity Commisgon guidance on public benefit. We are very mindful of the fact that the church could not operate without the generous contributions of its staff and its host of volunteers. We are enormously grateful and indebted to all who contribute in so many ways to the life and hea￿h of St Mary's Parish Church with the Heath Church. ACHIEVEMENTS AND PERFORMANCE 2023 was a year of transition marked in large part by a number of key staffing changes- Richard Wilson taking a sabbatical. Nigel and Gen Griffiths moving to Merstham to help revitalise the parish along with a number of church members. Kate Capper stepping down as Associate Vicar, Ben Forbe5 being appointed and starting as our new Head of Community Life. Martin Saunders stepping down from leading ouryouth Work with Emily Irving being appointed and starting as our full-time Youth Minister. and Mandy Childs starting her work as Children's Minister 16-Ilyrsl- Esther Lyth joined Leslie Jackson. Nick Flayner and Becky Begg5 in the warden team and there was a new PCC with a number of new members. This level of change within our leadership has been significant. There is the inevitable discomfort that comes from change, and it is natural that new staff and post holders all need time to become established. However. there have also been fflany positives. The pr(Kess of creating new roles or reimagining old ones has rbQt only brought renewed clarity and ftKus among the leadership around discipleship. Community building and mission, but also brought new energy into church life that will bear fruit in the coming years. Giving ourselves away It has been wonderful to see the vision of sending a group of people with Nigel and Gen Griffiths to join in with the mission in Merstham come to fruition. This was supported with financial and practical support of the Diocese and the Central Church, and our investment has been multiplied manytimes over. It has been reallyexciting to see how this group has grafted into the life of the parish and how God has blessed the whole community even in a short time. Investing in children, young people. and parents With so manyyoung people and children engaged in thechurch and with so manyfamilies being part of our community. the PCC has continued to be very keen to See our investment in this area of ministry increase. For many years we have been delighted to see our children's and youth work flourish. Post-covid, and with changes of staff and volunteers. there has been a transition to new models of working and meeting these needs. This continues to be an area of importance for us, and we have decided to increase our investment in our provision of oversight and leadership. Parochial Church Council of St Ma￿S Church Reigate ANNUAL REPORT FOR 2023 Being able to appoint a full-time Youth Minister (to build on a51 that Martin Saunders grew) alongside two part time Children's Ministers has been a major achievement. Emily Itving joined the team in the summer leading the group who went to the Satellites Festival. and she has already brought much. It has been so good to see new Children's team leaders join and grow under Mandy Childs leadership and others step up following Gen's move to Merstham. We have also been working on placing parents at the centre of our strategy for the discipleship of our children and young people. This found expression in how we shaped our new roles, and in the initiation of a Parenting for Faith course. There is still much to learn about how to embed this ethos into our church life. We were excited to be able to advertise for a new Associate Vicar to lead and oversee this as part of a wider brief of Leadership Development and Discipleship Growth and look forward to seeing Simon Russell taking up that post in 2024. Reaching ourtown and area As a church. especially since Covid. we have been taking time to reflect deeply on our approach to mission and evangelism. The Alpha Course in January to March was well attended and fruitful. It was a delight to see the way a relatively young life group grew in maturity and faith as they took leadership of the course, and to see baptisms and the subsequent growth of new lifegroupsariseoutof the process, all ofwhich continueto grow strongly. The progress of St Ma￿S Local has been slower than we had desired, but it will be exciting to seethe momentum and activity grow in 2024 and 2025. Building ourcommunity life The development of a new full-time'Head of Community Life. role, to build on and expand on Kate Capper's work, has been another important achievement. Creating a full-time role is a significant investment and shows how important this area of life is for us as church. It has been a joy to welcome Ben Forbes into this iole. Ben's role is extensive, but it is focused on developing how we grow our sense of being fami￿ together with the idea that families do four things-they look after each other {Pastoral Carel,theyspend time together (Social activities). they are a place to belong and grow (Life groups) and they make sure everyone is healthy (Emotionally Healthy Church). Spiritual Formation Richard's sabbatical wasanother moment of Change andtran5ttion. both for him personally as our Vicar and senior leader. and for the wider church. The fruits of this time will perhaps be seen overyears ratherthan months but it is already evidentthat itwas a time of growth for both him and for the church. All Christian ministry is founded on an inner life with God that has its origin in the gospel, and as Richard seeks to deepen his own spiritual life in response to the gospel, he is also determined that the spiritual formation becomes the hallmark of our life together. The development of the renewed Associate Vicar role further expresse5 this commitment. We continue to put a high priortty on teaching. where our focus this year was on the early chapters of Genesis, the meaning and identity of Jesus. ministry. and exploring how our future hope shapes life in the presenL W¢yship and Ministry One of our primary callings. as the trt)dy of ChrisL is to be a community that gathers for worship. and we continue to invest in and develop our corFY)rate times of worship and prayer. Attendance on Sundaysfluctuatesthrough the month and over theyear and. while this is inevitable, clearer communication around the importance of gathering has been developed Icome | Belong | SeNe l Grvel. In part this isa responsetothe Covidyearswhere our patterns and commitments changed. St Mar￿5 continues to offer a range of opportunities for worship at different times and in different styles. It has b&n good to see Parochial Church Council of St Mary's Church Reigate ANNUAL REPORT FOR 2023 growth atthe Heath Church. andthe830am Servi￿ and t05ee ourmid-week¢ommunion service thrive. The numbers involved in our music ministry has grown and the sense of team is also strengthening. Given how technolcoy is now an expected and routine part of our seNices. this has required e*(ra attention. resource& and time. Numbers Once again, we have been encouraged by our attendance at our Easter and Christmas services- 583 on Easter Day. 1082 at our Christmas Carol SeNices. 1707 over Christmas Eve and Christmas Day. Our average weekly attendance was 305 adults. and 82 under 16. At the APCM April 2023 there were S73 names on the electoral roll1544 in 2022). FINANCIAL REVIEW OFTHE YEAR In our budget projections for 2023 we anticipated that. before charging depreciation. our General Fund expenditure would exceed income by £23.I31. therefore creating a budget deficiL In the event. the 2023 Income exceeded expenditure. by £34.411 (Unrestricted funds onlyl. While planned giving was £20.212 below budget the overall surplus was achieved due to £70,000 accrual for two legacies. Accounting practice dictates their inclusion in the 2023 accounts. butthis amount isconservativeduetothe inclusion of propertysales in the estate valuation& Without this accrual there would have been a deficit of £35,589. The surplus leaves the General Fund Reserve at £315.014 as at 31 December 2023. Income from donors- Note 218} Compared with 2022, our planned Giwng decreased by £38.71l or 8%. In part this can be explained by some large donors moving With Reverend Nigel Griffiths to All Saints Merstham but also the general prevailing economic climate and consequent squeeze on household income and expenditure may have impacted the overall giving. Asoft Giving campaign took place during theyear including the highlighting of additional 'tap' machines. The resu1tsofthlsst￿e of campaign were not as expected, including a large reduction in one-off donation& and therefore a more formal giving campaign was planned for March 2024. The number of contactless donation machines in church and the centre has increased and, while the income from these is still only a small part of general giving, they also allow us to gather'tap, payments for other church activities and one-off appeal Over 300 regular donations from standing orders etc. are currently being received, many from couples. Tax efficient giving was lower than budget and 2022 levels. but still contributed £97.126 to the General Fund as a resu￿ of Gift Aid tax refunds. We are enormously grateful to God for this provision and blessing and to everyone in the hurch family who has contributed 50 generou51y. Income from church actiwties- Note21bJ Income from the Church Centre and the Church were up cQ3,000 against budget thanks tothe efforts of the Operationsteam. Further activty is taking placeto ensurethat both of our valuable resources are used fully, but appropriately. This heading also includes rental of church residential properties, and fees for weddings and funerals. Expenditure- Grants- Note 3 Payments to Individual Mission Partners amounted to £27307. a redLJCtion from 2022 as one partnership came to an end in August 2023. The grants. of £54.171 tovarious missional and evangelisticorganisationsincluding Tearfund, IJM, Open Doors,Sparkfish and Welcare. Full details of all donations. totalling £81.47812022 £83.786) are shown at Note 14 to the Parochial Church Council of St Mar￿S Church F2eigate ANNUAL REPORT FOR 2023 accounts. The PCC keeps under regular review the amounts given to mission partners and other donations. Expenditure- Other- Note3 In September 2022 the PCC agreed to increase the Diocesan share for 2023 by 3% or £7374 to £253,194. For 2024, the PCC have agreed a further increase of 3.3% to £261,549 which exceeds the cost, including overheads. of two full time clergy posts. AL%0 included under the heading Diocesan Share, for 2023, was £17K in respect of the services of one additional member ofclergyfrom September 2023. Staff costs have increased from £154.539 to £187,481. The principal reason for this is the appointment of a full time Youth Minister and the additional member of clergy who focuses on Community Life. The budgeted expenditure for 2024 will see this figure increase further in line with the strategy agreed by the PCC. &?lance Sheet Capital expenditure ofU,$08 P02Z. £&6961 was incurred in 2023. This included audio visual assets. kitchen and computing equipment. 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 decreased slightly in 2023 by £4,800 to El,840,4Crf)12022 a,8452001. 2024 We have decided to budget for expenditure. before depreciation, to exceed income by £46.102 as we expect many eX￿nSe headings. particularly staff costs, to increase. We cannot at present foresee these costs being totally matched by increases in incorne. We do however start the year with a high level of reserves Isee below). and it seems wise this year to use in part the* re*rve Peggy Caffyn.Tees Legacy This legacy continues to be ful￿ invested in 4 CCLA funds with a gain of £24.l36 bringing the value invested to £343389 this compares favourably to 2022 when there was a loss of £53,482 and total invested £319.253. The gain reflects the general upturn in the investment market during 2023. A review of investments has been undertaken in 2023. Income in 2023 from the sum invested amounted to £1l.65412022: Et15261. During 2023 income of £5.$44 was spent12022". £3.8591. The balan￿ carried forward and available for use in future years now stands at £55.811. The total sum received in 2013h4 was £359.696. Of this amount, a21,589, was restricted for the Heath Church. with 0,384 remaining 12022" Q0801. 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 forfabric work on the Church. RISK MANAGEMENT The PCC has considered the major risks to which the church is exposed including safeguarding children and vulnerable adults lin which regard the PCC follows the Diocese of Southwark Safeguarding procedures in full and has two experienced safeguarding officers to assist it), disability discrimination. data protection. health and safety and fire protection. The Risk Register is reviewed annually by the PCC. 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 financial statements. now utilising the new Xero accounting system and an annual budget which is regularly reviewed and updated. Parochial Church Council of St Ma￿S Church F2eigate ANNUAL REPORT FOR 2023 FUNDRAISING The Church'sfundraising actmties comprised a giving campaign which included teaching on Christian giving and invited a response. The majorityof the Church's income is derived from standing orders and one-off donations from Church member& Additional ¢onta¢tless giving terminalswere purchased for use on Sundays and midweek. The hiring of the Church and Church Centre also provides a good source of income. The Church d￿5 not empby outside fundraiser& The Church complies wth the principles of the CharitEs Governance Code. FUTURE PLANS If 2023 was a year of transition. we anticipate and pray that 2024 and 2025 will be years of increasing momentum. where we see a growth in community, connection. mission. and formation. We are mindful of our need to secure our finances going forward. raising income to be able to match our vision and *nse of calling. In line with our Strateg￿ priorit￿ we want to- Reach out to a world in need" Firmly communrate. embed and implement our approach to social engagement and local mission Grow confident disciples abte to share their fatth natural￿ by teaching and training Draw people into a new identity in Christ Welcome and induct new members into church IFfefollowing Alpha Draw people into deeper commitment marked by baptism Further develop our 'newcomer's flov/ Develop a culture of discipleshiFX Teach on the grace of God as the foundation of our gospel and community life Strengthen a core group participating in our monthly prayer meeting, and renew our approach to our annual 24t7 prayer week in the lead up to Easter Strengthen our small groups- increasing leadership. engagement. transformation, and participation Encourage families and indNiduals to participate in summer festivals of New Wine and Satellites Develop our approach to family discipleship. and spiritual formation across the whole church Love one another as family. Deepen belonging and developing pastoral care: Launch a new termty publicaticn called 'Spotlight' to share stories that celebrates our community life together.. Establsh and develop an annual diary of social events that build community and fellowship- Continue to deveknp our support of small groups: Plan for a whole church weekend away together in 202S Give oursefves away for the sake of othe Continue to maintain our partnership with Merstham and continue to explore partnership with the parish of Nine Elms in Battersea- Continue to deepen our partnership5 With others in mission overseas and strengthen our communication and engagement within the church family., Develop our relationships with other Churches and networks as we seek to grow resilient disciples in our secular age. Parochial Church Council of St Mar￿S Church Reigate ANNUAL REPORT Fofi 2023 RESEWES POUCY It is PCC policy to hold in unrestricted reserves the equivalent of at least one month's budgeted expenditure. li is also our policy to hold sums in reserve for building works arising from the Quinquennial insp*ction of the Church and for refurbishment of the Church Centre. The closing balance of £315.014 P022 £265.5541 on Unrestricted General ReseNe on 315L December 2023 represents approximately 4 months budgeted expendtture in the year 2024. This sum will provide a very helpful buffer if, as is possible, the church is affected by the continuing cost of living crisis and any further reductions in giving. Reseprfes A5 at 31 December 2023 £ Total funds 'Restricted reserves and endowed funds -Designated funds Free funds 4.658,950 {436.9111 (3.907.025] £315.014 Yunds not availablefor general purposes of the charity *Yunds that are designated or otherwise committed lat 31 December 2023) Included within the designated reserve totsl is £3.835,495 which is associated with property assets. These funds can only be realised by disposing of tangible fixed assets. INVESTMENT POUCY The charity Ithrough its Trustees) has the Fy)wer to invest in such stocks, shares, investments and propety as d￿rned fit. The charity has made such investments. principally in relation to the Peggy c8ffyn-T￿ legacy investments. On behalf of the PCC on 9th April 2024 Revd kichard Wilson Vicar io Parochial Church Council of St Mary's Church Reigate STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees Ithe PCC} are responsible for preparing the trustees report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom GenerallyAccepted Accounting Practice). Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view ofthe state of affairs ofthe charity at the year end and of its incoming resources and resources expended during that yeai. In preparing those financial Statements, the Trustees are required to: Select suitable accounting wlicies 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 statementy and Prepare the financial statements on the going concern basis unle55 it is inappropriate to presume that the charity will continue in busines& The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financia5 position of the charity and enable them to ensure that the financial statements comply with the Charitie5 Act 2011 and the Church Accounting Regulations 200& Theyare also responsible for safeguarding the assets of the charityand hencefortaking reasonable stepsforthe prevention and detection of fraud and other irregularities. Parochial Church Council of St Mar￿S Church Reigate INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ￿ MARYS CHURCH FIEIGATE Opinion We have audited the financial statements of the Par￿hla1 Church Council of St Mar￿S Church, Fleigate Ithe 'PCC'I for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance sh￿t. the Statement of Cash Flows and notes to the financial Statemen￿ including a summary of swnificant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kitigdom 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, thefinancial Staternen￿' give a true and fair view of the state of the PCCS affairs as at 31 December 2023 and of its incorning 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 accordan￿ with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 reF)Ort. 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 Ffic's Ethical Standaid, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffficient and appropriate to provide a basis for our opinion. Conclusions relating to going concem In auditing the financial statements we haveconcluded thatthe PCC members, use of the going concern basis of accounting in the preparation of the financial statements Is based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectwely, may Cast significant doubt on the PCC'S ability to continue as a going concern for a period of at least12 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 reporL Other information The other information comprises the information included in the annual report. including the PCC members, reF)Ort. other than the financial statements and our auditor's report thereon. Ouropinion onthefinancial statementsdoes not coverthe other information and. except to the extent otherwise explicitly stated in our reF)Ort. we do not express any form of assurance conclusion thereon. Our Tesponsibility 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. Ifwe 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. 12 Parochial Church Council of St Mar￿S Church Reigate INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ST MARYS CHURCH REIGATE Matters on which we are required to rewrt by exception In the light of the kno￿edge and understanding of the PCC and its environment obtained in the course of the audic we have not identified material misstatements in the PCC members, reporL We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2CM)8 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 wth 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 statementsthat arefreefrom material misstatement, whether due to fraud or error. In preparing the financial staternent& 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 responsibilitie5 for the audit of the financial statements We have been appointed as auditor under section 145 and reFM)rt in accordance with the Act and relevant regulations made or having effect theieunder. Our objectives are to obtain reasonableassurance 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 accordancewith ISAS IUKI will always detect a material misstatement when it exist> Misstatements can arise from fraud or error and are considered material if, Individual￿ or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial SEatements. 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 non- compliance with laws and regulations related to employment, financial reporting legislation and health and safety regulaiions and we considered the extent to which non- CO￿pIlanCe might have a material effect on the financial 5tatement& We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the CharitiesAct 2011. We a55essed the susceptibility of the charit￿5 financial statements to material misstatement, including obtaining an undeistandlng of howfraud might occur. by making enquiries of management, consKlering the internal controls in place and discussion amongst the engagement team. 73 Parochial Church Council of St Ma￿S Church Reigate INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ST MARYS CHURCH REIGATE We determined that the principal risks were related to management bias in accounting estimates, valuation of propety. presentation of separately disclosed items and management override of control& 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 Under￿l￿g supporting documentation, identifying and testing journal entrie& reviewing PCC meeting minutes and evaluating the Charit￿ internal control There are inherent limitations in the audit procedures described aly)ve. The more removed that laws and regulations are from financial transactions, the less like￿ it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detectthan those that arise from error as they may involve deliberate concealment or collusion. A further description of our reswjnsibilities for the audit of the financial statements is located on the Financial Reporting Council'swebsite at.. ww.frc.org.uklauditorsresponsibilitie& This description forms part of our auditorfs report. Use of our report This report is made Sole￿ to the PCC members as a body. in accordance Part 4 of the charities (Accounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might state to the PCC members. those matterswe are required to state to them in an auditor's report and for no other purpose. To the fiJllest 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. Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountants S Robin Hcrfxl Lane Sutton Surrey. SMI 25W Dated.. q iozik. Jacob Cavenagh 8 Skeet 15 elwible forappojntmentas auditorofthe Pccbywrtue ofitseligibilityfor appointmentas auditor ofa c0mpanytsndersect￿ 7212ofthe C(vnpJniesAct2006 14 lllllllllllll Iiiiiiiiiiiiiiiiill 11111111111111111 Illllllllllllll Illllllllllllll Iiiiiiiiiiiiiiiiio Illlllllllllllllll 11111111111111111 Parochial Church Council of St Mary's Church F2eigate BALANCE SHEET 31 December 2023 2022£ Tangl1￿e fixed assets Investment assets 51al Slbl 3D35.495 3,858344 358J67 332,970 4.l93P62 4.191.314 CurrèrtAssets Debtors 116390 44.633 Cash at bar)k and in-hand .990 495380 429,942 Liabil￿￿& ArrK)untsfalllw due wlthlnoneyear Creditors rJ02921 122.7481 4ry7,194 Net wrrenta Liabilitie5 ArTr)untstalling due after rrxJretharbone>par Credbtors NetJls£ets 4.658.950 4598508 Funds Unfe5tricted re5eryes 4.222,039 4.192,428 rieStr￿tÉd fe5ervÈs 78544 73.110 Endov4ments 331970 Total Funds 465&950 4598508 Approved by the Parochial Church Council on *Ayil 2024and signed on its behalf ty. Revd Rkhard Wllson Vicar Parochial Church Council of St Ma￿S Church Reigate STATEMENT OF CASH FLOWS for the year ended 31 Decembei 2023 Cash (usèd inl/w¢￿idtd tycperat(tvJ aCt￿￿*S Cash flow5from Investing athties Intwest and diwdends reCeI￿d 19,189 Payrrvènts to acquire tangib￿rIXed assets Proceeds on sale of tangible fixed assers Payments to acquire ftKed asset investments Proceeds on sale ol fixed asset investments 135081 16,696) 133(Xl Cash Iu5ed in) Iwomded ty operating artNit .E8i Ca$hfltr￿ from financing athities Intèrest freè loans rèpaid Cash (uséd inl finaneirwJ actiwties Net cash infwlouffi¢￿ 163191 Cash and cash equivalents at l January 2023 38SXY3 298,336 Cash and Cash &]u￿￿￿￿ts#$at3l D¢wnber2023 Cash Lts•d in owr•dng Net income/lexF*nditurel Inierert and (Ihriden(Is receNe(I in investirg actNif*S Depreciation IGainil1055 on di5twl of tawible r￿e￿ as5et5 (Gainilioss on disrx)sal of fixed asset investments (Xher (gains)￿¢￿e$ on investments Ilncreaselltkciease in ¢Yebtors (Decrease￿n¢1ea5¢ irbcredilrys Cash (used Inl Ipr¢ylded bywratln9 &ti￿tieS 65242 V9.1891 11157J 20.415 20,458 1.142 13i 1253YII 5&2 r71.7571 24.001 16.13T Parochial Church Council of St Margs Church Reigate NOTES TOTHE FINANCIAL STATEMENTS for the year ended 31 December 2023 Attounting Polkles The Parochial Church Council is a corporate trfxly Ilfc powe￿ Measurè 1956. Church Representation Rules 20061 and is a charity registèred with the Charity Commisgon Inumber11291401. Its principal place of 0￿rationS i& St Mary's Parish Office. St Mar￿5 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 arè as foll Basls of preparatb)n 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 IFRS 10211 and Financial Reporting Standard 102 IFRS 1021. The financial statements have been prepared under the historical cost convention subject to the revaluation of residential properties and investments. The accounts in¢lude all transaction& 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 member& The financial statements are presented in pounds sterling rounded to the nearest O. The PCC meets the definition of a public benefft entity under FRSI02 GoSng concern The trustees consider that there are no material uncertainties ab)ut 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 restrictlons regarding their use and are available for application on the general purposes of the PCC Funds designat￿ for a particular purpose by the PCC are also vnrestricted. Restricted fijnds are those monies received by the PCC which have been given for a particular purp￿. Endowment funds are funés. the Capital of wh￿h must be maintained., use of the income aiising from investment of the endowment varies according to individual trust purposes. Income Donatlon5 and legacles Donations and legacies lincluéing col￿tionS and income tax recoverable under Gift Aid) are accounted for once the charity has entitlement to the income, it is pr¢Jbablè thè incomè will be received. and the amount of income receivable can be reliably measured. Other Incorne Rental income from the letting of church prem5ses is iecognised when the rental is receivable. Income from investments Dwidends are accounted for when receivable, interest is accrued. Galns and losses on Investments Realised gains or losses are Tecognised when in￿ertts arè sdd. Unrealised gains or losses are accounted for on revaluation of investments at 31 Oewnber. Grants Grants relating to revenue expenditure are re¢c*Jnised in income in the F¢ftc¥Js in which the related costs are incurred. Expendlture Expènditure is accrued as soorb as a liabilty is incurred. SupFx)rt and wernance costs are Included in Èxpenditure on church activities. Church actNitles Most mission grants are payable monthly and are accounted for in the month in respect of which they are payable. Other rni55ion grants are accounted for when a decision to make payment has been taken. The Diocesan parish share is accounted for when payab￿. 18 Parochial Church Council of St Mar￿S Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 Landandbuildingsandchurch andchurch centre fit&Tngs Consecrated and benefice property 15 excluded from the KcouDts by s10121 lal of the CharitTre5 Act 2011. Residential properties used by the PCC in undertaking its activitie5 li.e. stsff 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. The Heath Church 15 also inclvded as an asset. No depreciation ha5 been provided on land and buihjings 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 beneficè buildings and on church and ehurch centre fittings continues to bè written off as expenditure in the Statement of Financial Activities ISOFAI. Fixr(Jres èrKI equipment costing more th¥n £SOO are capitalised and depreciated over their useful l1fewh￿h variesfrom 4yearsto 40years depending on the asset. Investments Investments are valued at market value at 3) Cecember. The Statement of Financial Attrvities includes the net gains and I0￿eS on revaluations and disposals throughout the ￿al 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 amgunt 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 frt)m a past event that will probabty result in the transfer of funds ro a third party and the atnount due tQ settle the obligation can be measured or estimated rèliabty. Creditors and provisitins arè recogni5ed at their settlement amount Financial instruments The charity only has financial assets and liabilities of a kind that qualify as basic financial instrumenis. 8asi¢ financial instruments are inittally recognised at transaction value and subsequently measured at their settlement value. Crltical accounting e5tlmates and judgements In the application of thè church's accounting policies, the trustees are required to make judgements. estimates and assumptions about the ¢arrying value of assets and liabilities that are not readily apparent from other source5. The estimates and associated assumptions are based on historical experience and other factors that are Considered to be relevant Actual results may differ from these estimates. The estimate5 and underlying assumptions are rewewed on an ongthng basi& Revis¥)ns to accounting estimates are recognised in the period in which the estimate is revised where the revision affects onty that period, or in the period of the rev6ion and future peri￿S wthere the rÈvision affects both current and futurè period Income TLtal 2Q3 Vnrestrtied Funds£ Restrirted Funds£ Total 2022 £ Funds£ Funds£ lal Donatlons and legacies Planned gwing and gifts Incorne tax recovery IGift Aidl Legacies 456,841 4S&841 49S.552 495552 97.126 Y1.126 103346 103358 83.959 83959 1,900 Offertories 5T2 572 1.789 Heath Church 75S8 8,453 8.453 Other income from dor￿T5 6.415 6,415 649.¥24 649x24 617.455 12 617.487 79 Parochial Church Council of St Mar￿S Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 TL*al 2023 Unre5trKt¢d FurwJs£ R•strict•d Fund5£ Total nd5£ FurKts£ Ibl Thurch actNftiE5 Renta I￿orr 7S446 75,446 Youth Income 11.449 11.449 15325 15325 Girls Brigade Inwme Hospitality & events SuThJry Income 5,933 5,933 S43I 5,431 15.492 492 14.155 14.155 13542 13.%2 20395 20.395 0,7S2 (cl Inve5trr*nts Inrerest and dmdends 7.154 li,9)5 135 (dl Other Incorne Grants crtal Incom• 747 76&i92 Expenditure vnrestric￿d Ful￿￿£ Tcrtal Total 2022 £ Fur•Js£ Fund5£ Funds£ ChU￿h 4Ctfvltks Giants lset Note 141 Mission Partnws 5S223 Z7,867 Other mi55iorn& donations .993 25,993 SS919 55,919 81216 Oth•r Diocese- sharè & salary Fees.. we￿- full time e lti￿a￿nt ial Security 4.820 Average no. of employees 12 Penskjn 3S3 I￿,4 Expenses reimbursed to PCC rrtèmbers and PayTnents made to third parties on their behalf in the year totalled £556712022 ￿.4371. These were mainty in respect of hovsing. books, food, kitchenware and Internet access. These payments were received by or on behalf of 312021" 31 PCC members. No employee received employee benefits of moi¢ than £60.OC(112022 Nill. Remuneration of family members of the PCC amounted to E17.02412022 £3W61 Flxed assets for use the PCC F￿tures& Equiwnent £ Totsl lal Tan9￿￿e fixed a55ets C05t or Valuat￿￿ At l January2023 AcWiEions 3.702,461 3.997.538 Disposals Revaluaiit)n of properties I6￿3) 160UI 14.8001 14BOOI At31 December 2023 3.990.183 Depreclatyon At l January20 Charge for theyear Disp05als 139.194 139,794 20.415 20.415 14.9211 14,9221 I54fi88 A131 Deeernber 2023 is4￿8 Net Bookvalue At31 December 137m4 3955.495 At 31 December 2022 3,702.461 1SS883 3P58344 Tangible fixed assets comprise the followng freeholdAeasehold land and buildings held as a$5ets by the pcc.. il 63 Chart Larft (Freehold), 9 Lymden Gardens IFreeholdl and Flat 11 Mon1￿ Cour¢ Relgate (Leaseholdl These properties are held in trust for the PCC of St Ma￿S and the full maintenance and insurance costs are the responsibilty of the PCC. ill 3 St Clair Close. tleigate (Freehold) The parish has a 20% interest in this property. the remaining 80% I￿Ing owned by the diocese. The PCC is resp(msitAe for 20% ofthè maintenance ar￿ insurance costs iiil Church Centre, Chart Lane. Reigate (Freehold) The land and buildings are owned by the PCC who have responsibility for maintaining and insuring thè propèrty. iv) Heath Church, Flanchford Road. Reigate (Freehold) rhe land and bvildings ère owned by the PCC who have responsibility for maintaining and insuring the Property. 21 Parochial Church Council of St Ma￿S Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 Thè Heath Church has after investigations with the txocese. been included in the accounts for the first time in 202S It is not valued in thesè accounts as no cost records are available. Any original costs are unlikely to be material or would already have been depreciated to an immaterial carrying value. Residential properties are included in thè Balance Sheet at their estimated market value using a property valuation we￿te. The Church Centre is included at cost Ibl In￿￿ments Maiker value at IM January Additions 332.ylo 388.257 &¢J)o Dlsposals Unrealised gains Ilossesl in theyear Market value at 31# De￿rnl￿r 14,6621 25.059 (3.7501 154.8371 331￿0 Hiswic cost 25A064 The historical cost of the Graveyard and Parish Trust investments is not kn¢)wn and cannot be traced as these investments were donated or acquired manyyears ago. The historical cost ofthe Caffyn-Tees Endowment Investments is £￿￿65. Debtors 2022 £ I￿orne Tax recovefable 29,609 32,458 Ofher debtors 81.623 8515 Prepayments 5.158 ii6y> Liabilitie& amounts falling due ¥￿thin one Othe¥ creditors 29.767 21,998 Deferred Income 525 750 21748 Analysis of r*t assets by fund Unrestrfrted rKts£ R•strlcted funds£ ntsE furbts£ JntsÉ frJnth£ Fixed 3￿$,495 4.193 3￿8544 331970 4.191314 Current 41&836 78544 73,110 429.942 Current Liabilt*s 130.2921 r217481 1217481 4.191428 73,IK) Analysis of fund mcNements durlrwJ the year Bal t¥fv l Jan 2022£ ExF*￿rrtufe Other gaIr￿/ Oc6s•s1 £ T[ar￿r$ Decemt•r unrestric￿ r•s•rws General Fund 783W79 rr29.0531 PO.4151 PJ661 2366 315.014 Capital 3.858544 14.8C(11 3,835,495 Parochial Church Council of St Mar￿S Church Reigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 bal bfvd l Jan 2022 £ Exixndltur• (Xh•rgolrts/ th)sse51 £ Transfers 31 t)ecemter Church Centre So,￿0 S0.OCM) inquennial 21530 21530 4191428 r749.4681 4221039 R$strI¢￿d rese Gra￿yard Trusts 3.472 3559 Parish Trusts 7,IZI 7.419 Caftyn-Teès- St Ma Caffyn-T&s- Heath Easter Project Gir15 Brig￿le 49.701 155441 $5,811 1,384 &3 5354 5376 S.936 162941 S.018 Endchvments Graveyard Trusts Parish Trusts 3.986 4353 9.731 10.6 Caffyn-Tee5- St Mary5 319253 24,136 343J89 Total Funds 2022 Bal tth¥d lJan2m£ Cthèr galnsl 3108e•mber 2¢J22 Irwne £ Tra￿T5 General Fund 2CQ58i 747044 1679.ml 1fi6991 261554 Capital 3.789,103 (20,4581 3,858344 Churth Certtrè 50.000 Quinquennial 21530 21530 747A44 4,193428 Restrlcted reserves Graveyard TrLJSt5 Parish Trusts 3386 3.472 7,IZI Caffyn-Tees. St 14a Caffy)-Tees. Heath Easter Proje Gir15 Brigade 42.034 11.256 13059i 49,701 1080 &428 741 5354 214 &443 162811 S376 6S976 1102141 73,mo Er￿¢JWMtftts GraV￿ard Trusts 4511 15251 .2￿1 153,4821 Parish Trusts 9,731 Caffyn-Tee5 St Marys 371735 319.253 Total FuThls 4J&447 27.7 Vnrestricted Funds comprise.. (al General Reserve. which contains that part of the PCCS income which is freely available for spènding. 23 Parochial Church Council of St Mar￿S Church Fleigate NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023 Ibl Capitsl Rese￿, which represents the value of invested income (principally in freehold and leaSeh￿d properties) which would become wailable for spending when realised. Church Centre Resejve, an unrestrKted reserve, which comprises irKorT)e Set aside by the PCC to meet future [efUrbthrT￿t Costs reLiting to the church centre. Idl ()Jlnquennlal Reserve. which contains income set a5Kae by the PCC to meet the costs of repairs tothe church ixjildings identif￿d by the Quinquennial (five-year￿> inspecii¢)n. Icl Restrlcted Funds comprk Graveyard Trusts, which contain income from endowment funds to maintain named giave5. Parish Trusts, which contain income from endowment bjnds for specific purposes e.g. care of the poor in the Parish. Easter Project Fund, which contains gifts restr￿ed frK use in this community proje¢ which is currently under review. Idl Caffyn-Tees Fund 1st Ma￿S). which contains income from the endowment fund to be used to cover expendfcure relating to the fabric of St Ma￿5 church. ma¥ntenan¢e of the organ and vpkeep offamity graves. Caff￿)-Tee$ Fund (Heathl, which contains a legacy which can only be used for Heath Church general purposes. Glrl< Brlgade Reser*. whth contains gifts restricted for use bythe Girls, BrigadÈ. Ibl Icl lel Endowment Funds comprisv. lal The Graveyard Tru￿ which are permanent endowment% the income from which is used for mair)tenance of named grave& Ibl The Parish Trus￿ which are permanent endowments the income from which is used for specified Purp￿ e.g. for the care ofthe rthr in thè Parish. Caftyn-Tees Trust (St Ma￿5}. which is a permanent endowment the income from which is to be used to cover expenditure relating to the fabn"c of St Ma￿5 church. maintenance of the oigan and upkeepoffamitygrave& No transfers were made was made from the General FLJnd to the Church Centre fieserve. There has been a movement of £2.366 from the General Fund to the Capttal Reserve representing capital expenditure described above. 10. Taxatlon The charity is a registered charity and as such its income and gains falling wtthin Sections 471 to 489 of the Corporatior) 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 object Related Party Transxtlons PCC members are considered to be related parties and the total empktyee benefits receNed bythem are set out in noie 4 atK)ve. PCC members are not remunerated, except as detailed in Note 4. During the year. donations totalling £n,7041202Z' ￿4.T28] V￿re receNed from PCC members. Trustees and indiwdual liability insurance is covered under the Public Liability sertion of our church insurance. The grant of Q3.8Z7 (2022 £13,169> was gNen to P & AGuiness a relatNe of PCC member E. Lyth. Mr & Mrs J Brown paid rent of £3.2￿{2022 £9.6001 for the Use of a church propetty. Mrs Brown was a trustee for the fvll year 2022 but onty a trustee for part of the year in 2023. 12 Operatlng leases The total future minimum lease payments under non