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2020-12-31-accounts

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THE PARISH CHURCH OF ST JOHN-AT-HAMPSTEAD

Registered Charity No 1129264

ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE PAROCHIAL CHURCH COUNCIL for the year ended 31 December 2020

Vicar The Revd Jeremy Fletcher

Churchwardens Jenny Lupa Martin Evans

Bankers

HSBC Bank plc 12 Hampstead High Street London NW3 1PY

independent Examiner Robert Ashdown ACA 75 Brookville Road London SW6 7BH

The Parish Church of St John-at-Hampstead

Reference and Administrative Details Full Name: The Parochial Church Council of the Ecclesiastical Parish of St John-at-Hampstead (“the PCC”).

Charity Registration Number: 1129264

Address and Website: Church Row, London NW3 6UU / www. hampsteadparishchurch. org.uk

Trustees under an Act of Parliament of 1827 Trustees under an Act of Parliament of 1827
Ex Officio
The Revd Jeremy Fletcher Vicar
Martin Evans Churchwarden
Jenny Lupa
The Revd DrAyla Lepine		 Churchwarden
Assistant Curate (until 6 September 2020)
Membership of the PCC
Ex Officio
The Revd Jeremy Fletcher * Vicar and PCC Chairman
Martin Evans *
Jenny Lupa *		 Churchwarden
Churchwarden and PCC Vice Chairman
member)		 (also an elected
The Revd DrAyla Lepine Assistant Curate (until 6 September 2020)
As laymembers of the London Diocesan Synod
Peter Ginnings
(also an elected member and an ex officio and (until 30
November 2020) elected member of the Deanery Synod)
Inigo Woolf *
Treasurer (also an ex officio member and (from 1 December
2020) elected member of the Deanery Synod and (until 20
October 2020) an elected member)
As laymembers of the North Camden Deanery Synod
John Barker
Vanessa Fitzpatrick
Angela Gardner *		 (also an elected member)
Deputy Churchwarden
RosemaryLoyd

Elected Members Gaynor Bassey-Fish Elizabeth Beesley Sarah Cheriton-Jones (from 20 October 2020) Jonathan Davey Helen Evans Karunesh Evans (from 20 October 2020) Seka Graovac Jean Harrison Andrew Penny (until 20 October 2020) Jon Siddall * Deputy Churchwarden Handley Stevens Nicholas Walser * PCC Secretary Deborah Zandstra Safeguarding Officer Co-opted Member The Revd Jan Rushton Associate Priest

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(Those marked with an asterisk * served as members of the Standing Committee for all or part of the year)

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The Parish Church of St John-at-Hampstead

Background

The church of St John-at-Hampstead, commonly known as Hampstead Parish Church, was consecrated in 1747 as the latest in a series of buildings on this site, which are believed to go back to 986.

The PCC has the responsibility of co-operating with the incumbent in the task of participation in God’s mission to the world, and taking counsel together for the sake of the pastoral, evangelistic, educational, social and ecumenical ministry of the church in the ecclesiastical parish which covers a large part of central Hampstead.

Aims and Objectives

Building an inclusive community of Christian love, faith, witness and action

The current Mission Action Plan for 2018-2022 was adopted in November 2018 following a comprehensive review of the church’s vision, mission and strategy. The plan is kept under regular review to ensure that the church’s activities remain consistent with its aims and objectives and in keeping with its headline priorities.

Our Aims

Hampstead Parish Church aims to be:

Our Objectives

With God’s help, Hampstead Parish Church is committed to:

Our Values

In every aspect of church life Hampstead Parish Church aims to be:

e _ inclusive and loving;

The PCC is committed to monitoring its activities so that these values permeate every aspect of the church’s language, behaviours, meeting pattern and use of resources.

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The Parish Church of St John-at-Hampstead

Achievements and Performance

The year was largely defined by the coronavirus pandemic, the impact of which was closely felt across the full range of the church’s many activities. The original lockdown in early March which led to the full or partial closure of the church and its facilities for the remainder of the year - and the consequential loss or reduction in attended services, children’s activities and the Spring Fair amongst others - meant that different and creative ways had to be found to respond to this extraordinary challenge. Foremost in this, starting from understandably modest beginnings, was the successful development and delivery of a wide range of online services, prayers, meetings and music which called into question how the church had managed without them previously. The collective response of many, when coupled with the magnificent response to the Vicar’s appeal to fund a serious projected deficit in the General Fund, was testament to the resolve and commitment of the church community. From these difficult times many positives have emerged.

In responding to this very challenging situation, the PCC met five times during the year (as well as immediately following the re-scheduled Annual Parochial Church Meeting in October primarily for the purpose of electing the Officers and appointing the Standing Committee). Apart from the first meeting in February all meetings were held remotely by Zoom with all decisions confirmed and recorded in accordance with the applicable rules and guidance.

While a number of activities have understandably been placed on hold as a result of the ongoing pandemic, and the limitations that this has imposed, further steps have been taken where practical to deliver the PCC’s headline priorities and outcomes as set out in the Mission Action Plan - and, in so doing, to learn the lessons of the pandemic. Key developments have included:

Headline Priorities

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The Parish Church of St John-at-Hampstead

Headline Outcomes

Future Plans

The Mission Action Plan remains at the heart of the church’s future plans and the main priorities unchanged. The pace at which further progress is made in delivering these priorities is closely aligned to how soon and how well we are able to adapt to, and learn from, the impact of the pandemic. Many of the key actions identified previously remain apposite:

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The Parish Church of St John-at-Hampstead

The church remains committed to continuing the rolling programme of capital projects to facilitate and enable the delivery of our full range of activities. The significant legacy income received in recent years provides a sound basis for achieving this target when combined with reserves that have been set aside for this purpose and any dedicated fundraising for specific projects. It therefore remains vital to maintain the encouraging signs of growth in planned giving in 2020 and achieve an increase in other regular income in order to cover the church’s annual running costs without having to call on the church’s designated reserves and legacy income.

Public Benefit

The PCC is aware of the Charity Commission’s guidance on public benefit and the advancement of religion. It believes that working with the Vicar, Assistant Curate and Associate Priest for the promotion of the mission of the Church in the parish, and in the wider community, it benefits the public, in particular, by providing:

Structure, Governance and Management

Act of Parliament relating to St John-at-Hampstead

The Church building and the Churchyard are vested in the Vicar. Under an Act of Parliament of 14 June 1827 (“the Act”) a group of trustees was established in whom were vested the organ, fixtures and furniture of the Church, and who have responsibility for maintaining the Church in good repair, and insuring the buildings, fixtures and furniture against damage by fire. The Act provides for the election of up to 21 trustees to serve for a period of nine years although the qualification for election as a trustee (being liable for poor relief rate) is now obsolete as is the trustees’ source of funding (pew rents). The Vicar, churchwardens, and curate(s) are trustees ex officio. In 2013 it was decided to elect no new trustees which means that, since April 2019, the sole trustees under the Act are the Vicar, churchwardens, and any licensed assistant curate(s) ex officio.

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The PCC

The PCC is a corporate body established by the Church of England. It operates under the Parochial Church Council Powers Measure 1956 (as amended) and the Church Representation Rules. It is also a registered charity.

The appointment of PCC members is governed by the Church Representation Rules. Membership of the PCC comprises: the licensed clergy, the two churchwardens, and lay members of the

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diocesan and deanery synods (ex officio); and 15 lay members elected by the Annual Parochial Church Meeting (“the APCM”) who serve three year terms. In addition, the PCC may co-opt up to three members annually.

The churchwardens are elected annually at the meeting of Parishioners immediately preceding the APCM and, by custom, serve a maximum of four years consecutively.

Members must be communicants of sixteen years and upwards and on the electoral roll of the parish. The PCC normally meets five times a year. At the first meeting of the new PCC after the APCM an introduction is given to the responsibilities of the PCC members and the regulations which control their conduct of business.

Joint Meetings of the Trustees under the Act and the PCC

Since the responsibilities of the trustees under the Act relating to the fabric of the building overlap with those of the PCC relating to the life of the church, it has long been the custom to agree, at the first meeting of the PCC after the APCM, that the trustees under the Act and PCC members (who are themselves registered with the Charity Commission as trustees of the charity) should meet jointly.

Electoral Roll

There were 234 names on the Electoral Roll at 1 January 2020. During the calendar year three new names were added and five removed either through death or relocation. This resulted in a total Electoral Roll of 232 at 31 December 2020.

Standing Committee

As required by the Church Representation Rules, a Standing Committee is appointed annually by the PCC. It has full power to transact the business of the PCC between its meetings, subject to such directions as the PCC may give. Its function is to support the Vicar in his role as the promoter and “guardian” of the parish’s Mission Action Plan and it also monitors and encourages implementation of agreed plans by the PCC’s Committees and Working Parties. It meets between the full meetings of the PCC and in an emergency if necessary.

Committees and Working Parties

The PCC appoints a number of Committees and Working Parties to support and carry out the plans and programme of activities approved by the PCC:

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The number, remit and composition of the Committees and Working Parties is kept under regular review. Ad hoc Development and Project groups are formed as appropriate to develop proposals and to perform specific time-limited tasks.

Annual Meetings

Due to the coronavirus pandemic, the Bishop of London issued special directions for Annual Meetings held in 2020, extending the time allowed for holding these meetings up to 31 October, and permitting meetings to be held using an online platform.

At the meeting of Parishioners held by Zoom on 20 October 2020, Martin Evans and Jenny Lupa were re-elected as churchwardens. Angela Gardner and Jon Siddall were elected as deputy churchwardens.

At the Annual Parochial Church Meeting which followed, John Barker, Vanessa Fitzpatrick, Angela Gardner, Rosemary Loyd and Inigo Woolf were elected to serve a three year term as parochial representatives of the laity on the Camden Deanery Synod. Elizabeth Beesley, Sarah Cheriton-Jones, Jonathan Davey, Nesh Evans and Seka Graovac were elected as parochial representatives of the laity on the PCC for a three year term.

The Vicar paid tribute to the ministry and staff teams and the many volunteers who had contributed so much in this extraordinary year by responding so willingly and so well in meeting the many challenges created by the coronavirus pandemic. It had been a very difficult year but he was confident that the church would be stronger for the experience. He recorded his particular thanks to Andrew Penny who was standing down from the PCC after many years of dedicated service during which he had completed two separate terms as churchwarden as well as serving as PCC Secretary. Happily, he would remain active in his role as Lay Minister as well as in his capacity as Chair of C4WS, the success of which in recent years owed much to his : dedicated involvement.

On behalf of the membership, Jon Siddall expressed sincere thanks to the Vicar for his extraordinary efforts in leading the church successfully and with such determination through this most difficult of years, ably supported by Julia.

Clergy, Lay Ministers and Staff Team

The Reverend Jeremy Fletcher successfully led a rather different year in the church’s ministry as Vicar, fully supported by the Reverend Dr Ayla Lepine (Assistant Curate), the Reverend Jan Rushton (Associate Priest), and Handley Stevens and Andrew Penny (Lay Ministers). Ayla’s appointment as Chaplain of King’s College Cambridge in September not only confirmed her exceptional talents but continued a long tradition of those who have trained in Hampstead going on to important involvements elsewhere. Happily, the membership was able to express its appreciation for all that she had done at her farewell service after the re-opening of the church following the first lockdown.

The investment during 2019 in up to date office technology meant that Courtney Terwilliger, as Parish Administrator, was able to make full use of her skills and play a key role in keeping the

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church operational through the year. Maureen Smith skilfully adapted her role as Children and Youth Worker to meet the different working conditions and was instrumental in devising and delivering the new ‘Bubble Service’.

The continued significant support of the Hampstead Church Music Trust meant that the PCC was able to retain the services of the professional choir under the accomplished direction of Peter Foggitt, ably supported by Geoffrey Webber as the newly-appointed Organist and Assistant Director of Music. The magnificent and ever-present contributions of the choir, both live and recorded, to the main church services provided a vital and greatly appreciated boost. Aidan Coburn’s appointment as Director of the Junior Choir and Director of the Community Choir was warmly welcomed and both choirs look forward to reaping the full benefit of his expertise and infectious enthusiasm once a live presence in church is again permitted.

Financial Review

2020 was a most unusual year. The closure of the church for worship during successive lockdowns and the inability to raise income in previously normal ways was a challenge which had not been predicted in setting the budget. The PCC benefited from a successful fundraising appeal in the Autumn when parishioners generously responded to a predicted serious deficit in the General Fund.

It will be important in future years to note that 2020 was exceptional financially and is not a year to compare easily to others in terms of trends of income and expenditure.

With the benefit of a generous legacy of £100,000 from the estate of Estelle Spottiswoode, combined income for the year was £513,034 against £457,640 in 2019 and the 2019 deficit of £52,258 replaced with a surplus of £38,327 before the unwinding of part of the historic pension fund deficit.

General Unrestricted

The timing of the receipt of the £100,000 legacy was a blessing as it enabled the PCC to maintain services and ministry during lockdown with a degree of confidence. When it became apparent that closure of the building would have a significant impact on income - loss of collections at services, hire income and cancelled events totalled almost £41,000 - it was decided to invite the congregation and parishioners to give towards making good this deficit, so that the church could maintain its policy that legacy reserves are used for investment projects. For the first time the appeal was made by video and the generosity of parishioners was exceptional. This, combined with a careful trimming of expenditure and a growth in regular giving, meant that the loss of income was covered.

It was decided during lockdown to retain the services of the professional choir and move services online; continuing pastoral support and several activities for families with young children has been appreciated. There was some investment in technical equipment for recording and streaming services but, overall, costs have been managed carefully with the result that the General Fund ended the year with a net positive movement in funds of £2,404.

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Designated Unrestricted Fund

The PCC has a policy of placing legacies in a designated unrestricted fund where the funds are not going to be spent within the year of receipt.

In 2020, £100,000 was added from the estate of Estelle Spottiswoode and £48,786 was spent on redoing the external lighting. £577,035 remains in the Designated Fund of which £132,000 was set aside in prior years for repairs and £445,035 relates to legacies.

Restricted - Fabric Repair Reserve Fund

The PCC also operates a restricted fund for repairing the fabric. We were fortunate to be able to prepare the Voluntary Rate letters before lockdown in March. Income from the Rate was spent on repairs during the year and following receipt of other donations, the fund increased from £50,971 to £56,047. The donations received in 2020 will be spent in 2021.

Expendable Endowment Funds including the Parish Development Fund

The main assets of the Parish Development Fund are two properties. One is a leasehold flat in West Hampstead which was purchased some years ago to house a curate and the other is the freehold of 100 Frognal together with the leasehold of a flat there. The combined value of the two properties is £1.4m. The Flat at Frognal has been let throughout the year and £25,000 of this income has been transferred to the General Fund as a grant in support of ministry to children and young people.

During the year investments in individual shares that had been gifted to the PCC some years ago were sold and the proceeds of £20,000 were reinvested in a pooled investment fund.

Giving to Charities

The PCC gives 10% of the previous year’s unrestricted income away (after deducting grants and legacies received) to charities. On this basis the PCC gave £27,468 from the unrestricted General Fund. Restricted funds were received during the year especially for the work of CARIS in Camden and Haringey including food banks. The total amount given to charities was £33,554 (£39,313 in 2019).

In addition, the PCC had been holding funds for Churches Together in Hampstead for a refugee family. Following a change in policy, Churches Together in Hampstead requested that their funds of £30,562 should be distributed to a number of charities. Within this sum, £3,773 was donated to the restricted fund that the PCC holds for its sponsorship of a refugee family. At the year end there was £12,454 in the PCC’s sponsorship fund (2019: £10,407).

Cash Management

Following the receipt of a number of legacies in recent years, the PCC was holding £700k in cash in its balance sheet. Charities are advised to hold cash where they plan to spend surplus funds within five years and this is the case for Hampstead Parish Church. Prior to deployment of the reserves, funds are held on deposit with HSBC and with the Central Board of Finance of the Church of England. Interest rates have fallen to almost zero, and during the year the PCC lent £57,424 to the Trustees of Holly Bush Vale (the Vicar & Churchwardens) who have refurbished a house on the Hampstead Parochial School site for teacher accommodation. The loan is interest 10

The Parish Church of St John-at-Hampstead

free and is being repaid from rental income over an expected five year period.

Risk Management

The PCC reviews the risk register every year and a theme in recent years has been the need to broaden the donor base. The successful fundraise in 2020 brought in some new donors as well as addressing the anticipated shortfall that had been exacerbated by the coronavirus pandemic.

Impact of Coronavirus / COVID-19

The PCC carefully considered the potential negative impact of the coronavirus on the church’s financial and operational position and took appropriate steps to mitigate and limit this as far as possible. The various measures taken, including a one-off appeal to cover the resulting loss or reduction in certain regular sources of income and, in parallel, a trimming of expenditure meant that most core activities were maintained albeit mainly online. This was facilitated by a further modest investment in technology, following an earlier upgrade in 2019, which enabled links with core audiences to be maintained and demonstrated one way that the pandemic could be turned to advantage. The dedicated efforts of the cleaning and welcoming teams ensured that the church, when open, remained a place of safety and welcome. The policy of holding surplus funds mainly in cash to finance planned future projects meant that reserves, and the stability of the church’s finances, have not been adversely affected. The church’s position therefore remains robust.

investment Policy

The PCC’s investment objective is to preserve the real value of investments as measured by the consumer price index over a five year period.

The PCC retains investments in property and pooled investment funds to provide an asset base on which borrowings can be secured if necessary to support major improvements and renovations such as the planned complete redecoration of the church.

Each pooled investment fund manager must have a responsible investment policy which is compatible with any guidance provided by the Church of England and the Diocese of London.

Reserves Policy

The policy for the unrestricted general fund is to retain a free cash reserve in the range of £20,000 to £30,000 to ensure that there is sufficient working capital to meet expenditure as and when it is incurred without the need to make transfers from designated funds. At the end of the year the Financial Statements show that the unrestricted reserve was £18,686 (2019: £16,282) net of the deficit in the pension scheme of £16,808. Covid-19 has shown the extent to which the income of the church falls when the building is closed for three months. However, 2020 also demonstrated that parishioners are willing to offer financial support when the unexpected happens; we therefore do not propose to change this reserves policy.

Budget for 2021

The Budget for 2021 is being prepared on the basis that the church will not be able to be fully open until at least June, that normal fundraising during the first half of the year will not be

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possible, and that some fundraising will be required in Autumn 2021 once the full financial impact on the PCC’s Accounts for 2021 can be quantified. The result from 2020 is a remarkable testament to the support and generosity of parishioners, but as the economic effects of the pandemic make themselves plain, the PCC is aware of the need to ensure that all expenditure is tied to mission imperatives, and that income generation is a priority.

Safeguarding

The PCC has complied with its duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016 to have regard to the House of Bishops’ guidance on safeguarding children and vulnerable adults.

Approved by the Parochial Church Council on 22 February 2021 and signed on its behalf by: C Sf. Jeremy Fletcher Vicar and PCC Chairman

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The Parish Church of St John-at-Hampstead

Statement of financial activities for the year ended 31 December 2020

;

Notes 2020 2019
Income from: General Designated Restricted Endowment
Fund Fund Funds Funds Combined Combined
£ £ £ £ £ £
Donations and legacies 3 307,551 100,000 27,518 . 435,069 348,932
Other trading activities 4 16,519 - 6,464 : 22,983 51,133
Investments 5 2,127 : 1,090 51,765 54,982 57,575
Total income 326,197 100,000 35,072 51,765 513,034 457,640
Expenditure on:
Charitable activities 7 349,648 48,786 51,613 1,043 451,090 495,974
Raisingfunds 9 2,490 - 3,323 13,651 19,464 23,733
Total resources expended 352,138 48,786 54,936 14,694 470,554 519,707
Net income before gains and
losses on investments (25,941) 51,214 (19,864) 37,071 42,480 (62,067)
Gains/(Losses) on investments 14 - . 1,670 (5,823) (4,153) 9,809
Netincome before transfers (25,941) 51,214 (18,194) 31,248 38,327 (52,258)
Transfers between funds 12 25,000 - - (25,000) - -
Net income after transfers (941) 51,214 (18,194) 6,248 38,327 (52,258)
Other recognised gains/losses:
Actuarialgain/(losses) on defined 4
benefit pension scheme		 3,345 . . . 3,345 7,337
ice ce
Net movement in funds 2,404 51,214 (18,194) 6,248 41,672 (44,921)
Reconciliation of Funds
Total Funds brought forward 16,282
525,821
91,589
1,414,997
he,
A
A		 2,048,689 2,093,610
TotalFundscarriedforward 18,686 577,035 73,395 1,421,245 2,090,361 2,048,689

The attached notes (1 - 23) form part of these financial statements

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The Parish Church of St John-at-Hampstead

Balance Sheet at 31 December 2020

2020 2019
General Designated Restricted Endowment
Notes Fund Fund Funds Funds Combined Combined
Fixed assets £ £ £ £ £ £
Plant and equipment 43 - : 2,249 . 2,249 3,374
Financial assets 14 . - 25,957 1,423,046 1,449,003 1,453,101
Total fixed assets - . 28,206 1,423,046 4,451,252 1,456,475
Current assets
Debtors
Gift aid recoverable 3,661 - 13 ‘ 3,674 4,802
Hollybush Vale Trustees 16 : 57,424 : - 57,424 :
Trade debtors 639 : . . 639 12,669
4,300 57,424 13 - 61,737 17,471
Cash at bank and in hand 56,147 519,611 48,886 23,199 647,843 648,996
Total current assets 60,447 577,035 48,899 23,199 709,580 666,467
Liabilities: amounts falling due
within one year
Creditors for goods and services (5,517) : : : (5,517) (3,707)
Clients account for 100 Frognal . ” (3,710) . (3,710) (3,606)
Other Creditors 15 (19,436) : : (25,000) (44,436) (46,787)
(24,953) - (3,710) (25,000) (53,663) (54,100)
Net current assets 35,494 577,035 45,189 (1,801) 655,917 612,367
Creditors
falling due after one year
pension scheme liability		 21 (16,808) - . + (16,808) :
(20,153)
Net assets 18,686 577,035 73,395 1,421,245 2,090,361 2,048,689
Funds:
Unrestricted General Fund 18,686 18,686 16,282
Designated for Future Repairs 577,035 577,035 525,821
Restricted Funds 17 73,395 73,395 91,589
Endowment Funds 18 1,421,245 1,421,245 1,414,997
421,258 7,048685

Approved by the Parochial Church Council on 22 February 2021 and signed on its behalf by:

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5
-
Le . | ey i “¥ fae
J FLETCHER, Vicar | R M WOOLF,‘Hon Treasurer
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The attached notes (1 - 23) form part of these financial statements

The Parish Church of St John-at-Hampstead

Cash Flow Statement 31 December 2020

2020 2019
£ £ E£ £
Netcash from operating activities 1,344 (261,880)
Cash flows from investing activities
Dividends, interest and rentfrom investments 54,982 57,575
Proceeds from the sale of investments 19,945 -
Purchase of investments (20,000) -
Net cash provided by/(used in) investing activities 54,927 54,927 57,575 57,575
Cash flows from financing activities
Loan to Trustees of Holly Bush Vale (57,424) (57,424) .
Netcash provided by/(used in) financing activities (57,424) - -
Change in cash and cash equivalents in the reporting period (1,153) (204,305)
Cash and cash equivalents at 1 January 648,996 853,301
Cash and cash equivalents at 31 December 647,843 648,996
Reconciliation of net income/(expenditure) before investment gains
Net income before investment gains 31 December 42,480 (62,067)
Adjustments for:
Depreciation charges		 1,125 1,125
Dividends, interestand rentfrom investments (54,982) (57,575)
Interest paid on borrowings - -
Decrease/({increase) in debtors 13,158 (2,768)
(Decrease)/increase in creditors (437) (140,595)
Net cash provided by/(used in) operating activities 1,344 (261,880)
,
Analysis of cash and cash equivalents
Cash in hand 37,668 38,516
Deposit for fixed period 200,000 400,000
Deposits less than 3 months 410,175 210,480
647,843 648,996

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Notes to the financial statements

Note 1: BASIS OF PREPARATION

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs, and with the Regulations’ "true and fair view" provisions, together with FRS102(2016) as the applicable accounting standards and the 2016 version of the Statement of Recommended Practice: Accounting and Reporting by Charities {SORP(FRS 102)}.

The financial statements have been prepared under the historical cost convention except for the valuation of investment assets which are shown at fair value.

The Parochial Church Council (PCC) is a public benefit entity within the meaning of FRS 102.

1.2 GOING CONCERN

There are no material uncertainties related to events or conditions that cast significant doubt on the PCC’s ability to continue as a going concern.

1.3 CHANGE IN ACCOUNTING POLICY The accounts present a true and fair view and the accounting policies are as outlined in this note. There have been no changes of accounting policies in this period.

1.4 CHANGES TO ACCOUNTING ESTIMATES

There have been no changes to accounting estimates in this period.

1.5 MATERIAL PRIOR YEAR ERRORS

No material prior year errors have been identified in the reporting period.

Note 2: ACCOUNTING POLICIES

2.4 RECONCILIATION WITH PREVIOUS GENERALLY ACCEPTED ACCOUNTING POLICIES No reconciliations with previous generally accepted accounting policies are required.

2.2 INCOME

Recognition of income Congregational giving, donations, grants, interest, rents, dividends and other income are included in the Statement of Financial Activities (SOFA) when the PCC becomes entitled to the resources and the monetary value can be measured with sufficient reliability. Offsetting There has been no offsetting of assets and liabilities in the SOFA or income and expenses, unless required or permitted by the FRS 102 SORP.

Tax reclaims on donations and gifts

Gift aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid recovered on a donation is considered to be part of that gift and is credited to the same fund as the initial donation unless the donor has specified otherwise.

Legacies Legacies are included in the SOFA when receipt is probable, that is, when there has been a grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the PCC or can be met.

Volunteer heip

The value of voluntary help received is not included in the accounts but is described in the PCC’s annual report.

Investment gains and losses

This includes any realized and unrealized gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

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2.3 EXPENDITURE AND LIABILITIES Liability recognition

Liabilities are recognized where it is more likely than not that there is a legal or constructive obligation committing the PCC to pay out resources and the amount of the obligation can be measured with reasonable certainty.

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Tangible fixed assets for use by the PCC

Consecrated and beneficed property is excluded from the accounts by s.10(2)(a) and (c) of the Charities Act 2011. Other fixed assets are capitalized if they can be used for more than one year, and cost at least £2,000.

Movable church furnishings held by the Vicar and Churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted as inalienable property unless consecrated. They are listed in the church inventory, which can be inspected. Items acquired prior to 2000 are not valued in the accounts as there is insufficient cost information available.

Financial assets Fixed asset investments in quoted shares and pooled investment funds are valued initially at cost and subsequently at fair value (market value) at the year end. The long leasehold properties are stated at estimated fair values for investment properties. Debtors Debtors including trade debtors and gift aid recoverable are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the PCC. Subsequently they are measured at the cash or other consideration expected to be received. Cash at bank Cash at bank and in hand include deposits with the Central Board of Finance of the Church of England. These deposits are repayable on demand. There is also a fixed term deposit of £200,000 with HSBC maturing on 3 April 2021.

2.5 FUNDS

Unrestricted Funds represent the remaining income funds of the PCC that are available for spending on the general purposes of the PCC. The Designated Fund is an unrestricted fund which represents the amount set aside by the PCC to meet future repair liabilities; it is not regarded as part of the ‘free reserves’ as disclosed in the PCC’s report. Income earned on the cash balances held by the Fund is recorded in the General Unrestricted Fund.

The Restricted Funds are income funds that must be spent on restricted purposes and details of the funds held and restrictions provided are set out in Note 17.

The Endowment Funds are all individual funds where there is a discretionary power to spend capital as income. Full details of the funds and their restrictions are set out in Note 18.

A5

The Parish Church of St John-at-Hampstead

Note 3 Donations and legacies
Notes General
Fund		 Designated
Funds		 Restricted
Funds		 Endowment
Funds		 2020
Combined		 2019
Combined
Planned giving including gift aid 176,859 - : 176,859 131,622
Income tax recoverable 41,017 . . 41,017 35,012
Collections: ordinary services 9,862 : : 9,862 29,740
Collections: special services : 1,736 - 1,736 8,754
Donations
Voluntary rate		 9,712
:		 18,446
6,336		 .
-		 28,158
6,336		 16,931
8,312
Legacies
Social events		 6 1,000
322		 100,000 -
-		 :
:		 401,000
322		 12,000
971
Grants received:
Friends ofthe Drama 16 2,500 1,000 - 3,500 6,000
Hampstead Church MusicTrust 16 52,500 : - 52,500 62,500
Listed Places ofWorship reVAT 13,779 : : 13,779 37,090
307,551 100,000 27,518 - 435,069 348,932
Note 4 Other trading activities
Fees for use of Church 2,920 : - 2,920 16,002
Parish rooms 12,194 - - 12,194 21,146
Spring fairand other events
Printing and books		 806
50		 557
-		 :
-		 1,363
50		 8,276
1,431
Communitychoir - 3,422 3,422 .
Solar Panels - Feed in Tariff 549 549 :
Traidcraft stall : 2,485 - 2,485 4,278
16,519 - 6,464 - 22,983 51,133
Note 5 Income from Investments
Rent Dennington ParkMansions - . 6,000 6,000 7,200
Rent 100 Frognal - : 40,526 40,526 41,424
Dividends and Interest 2,127 1,090 5,239 8,456 8,951
2,127 - 1,090 51,765 54,982 57,575
Note 6 Legacies received
The Estate of E Spottiswoode : 100,000 - - 100,000 -
The Estate of E Rose 1,000 1,000 -
The Estate of MCantril . - . - 1,000
The Estate of P Gardner - - : - 1,000
The Estate of PGeorge : - - - 10,000
1,000 100,000 - - 101,000 12,000

A6

The Parish Church of St John-at-Hampstead

Note 7 Activities relating directly to the work of the Church

General Designated Restricted Endowment Endowment 2020 2019
Notes Fund Fund Funds Funds Combined Combined
Ministry: diocesan common fund 90,000 . . 90,000 87,000
clergyexpenses 10 4,943 . . 4,943 7,544
accommodation 9,503 : - 9,503 8,784
recruitment costs . . 1,663
Children & Youth Worker 11 26,400 : - 26,400 26,606
Parish Administrator 11 26,884 : : - 26,884 20,143
Pension deficit apportionment 11 3,838 : : 3,838 3,784
Music staff 11 30,110 . - 30,110 29,166
Choir - adults and children 49,720 - . 49,720 51,403
Other music costs 3,661 3,300 493 7,454 6,770
Children and Youth 1,591 : - 1,591 3,263
Heat & light 6,827 : : 6,827 8,073
Fabric expenditure/maintenance 13,079 48,786 8,310 : 70,175 92,954
Parish rooms 11,310 - - 11,310 15,599
recoverable VAT on repairs 8,137 - : 8,137 39,026
Depreciation 13 : 1,125 : 1,125 1,125
Insurance 11,306 - - 11,306 10,506
General expenses 16,931 - - 16,931 19,511
IT and communications 5,555 - 5,555 16,723
Social events 135 135 1,140
Flowers : 587 : 587 900
Grants made 8 27,468 36,098 550 64,116 39,313
Refugee sponsorship 2,193 2,193 3,778
Independent Examination fee 2,250 . 2,250 1,200
349,648 48,786 51,613 1,043 451,090 495,974
Note 8 Grants made
Church overseas:
- missionary societies 5,400 . . 5,400 7,478
- reliefand development agencies 7,000 715 - 7,715 7,600
UK missions/other Church Societies 8,600 3,849 - 12,449 15,181
Secular charities 5,468 972 : 6,440 8,054
Churches together in Hampstead 30,562 : 30,562 -
Individuals for relief of poverty 18 - - 550 550 -
Hampstead Parochial School 1,000 : - 1,000 1,000
22 27,468 36,098 550 64,116 39,313
Note 9 Expenditure on raising funds
Services, voluntary rate & events . 2,209 - 2,209 2,179
Printing and books 2,490 - - 2,490 4,676
Traidcraft stall . 1,114 - 1,114 3,608
Dennington Park Mansions : . 1,464 1,461 285
100 Fragnal - - 12,190 12,190 12,985
2,490 3,323 13,651 19,464 23,733

Note 10 Expenses paid to Members of the Parochial Church Council

Expenses of the Clergy, who are members of the PCC, totalling £4,943 (2019: £7,544) were reimbursed. Members of the PCC engaged in teaching in the Junior Church had their expenses reimbursed as did the Churchwardens’ relevant expenses.

;

A7

The Parish Church of St John-at-Hampstead

Note 11 Staff costs The Clergy are paid by the Church Commissioners but funded by the Parish's contributions to the Common Fund. During the year

Note
The		 Note 11
Staff costs
Clergyarepaidby the Churchthe ChurchChurchCommissionersbut fundedfundedby thetheParish's contributionscontributionsto the Commonthe CommonCommon		 Fund.During the year
The
the		 Clergy are paid by the Churchthe ChurchChurch Commissioners but fundedfunded by thethe Parish's contributionscontributions to the Commonthe CommonCommon
PCCemployed a parish administrator, a children and youth workerand 3 parttime staff.
2020		 Fund. During the year
2019
Salaries
78,666
Social Security
961		 72,109
1,486
Pension costs
8,240		 6,104
87,867 79,699

No employee received employee benefits in excess of £60,000.

The PCC operates a money purchase scheme through TPT Retirement Solutions for staff.

Note 12 Transfers between funds £25,000 relates to a grant from Parish Development Fund to the General Fund to help fund work with children and young people (2019: £25,000 grant from the Parish Development Fund to the General Fund).

Note 13
Fixed assets - equipment
Assets at 1 January 2020
Additions
Assets at 31 December2020		 Equipment
25,679
:
25,679		 Equipment
25,679
:
25,679		 Depreciation
(22,305)
(1,125)
(23,430)		 Net BookValue
3,374
(1,125)
2,249
Note 14
Financial assets
The significance offinancial investmentstothe PCC’sfinancial position issetout inthe PCC's annual report.
Investments atfairvalue: 1 January Purchases Investment 31 December
2020 (Sales)
Gains(Losses)		 Gains(Losses) 2020
- Restricted
4,267 CBF Investment Fund shares 24,287 : 1,670 25,957
24,287 - 1,670 25,957
- Endowment
Freehold of100 Frognat and long leaseof FlatA
Long lease of Flat 10a, Dennington Park Mansions
1,267 CBF Investment Fund shares		 981,000
399,500
-		 -
-
20,000		 -
.
1,944		 981,000
399,500
21,944
2,052
Barclays Bank shares
12,222 AMP Ltd Ordinary shares
343
Janus Henderson Group shares		 4,608
42,405
6,375		 (3,111)
(10,306)
(6,528)		 (1,497)
(2,099)
153		 -
-
-
1,501 M& G Charifund units 24,926
1,428,814		 :
55		 (4,324)
(5,823)		 20,602
1,423,046

The freehold and long leasehold properties are valued as investment properties by Inigo Woolf FCIB, a member of the PCC, as at 31 December 2020.

Investments at cost:
- Restricted		 1 January
2020		 Purchases Sales 31 December
2020
1,267 CBF Investment Fund shares 5,909
5,909		 :
:		 -
.		 5,909
5,909
- Endowment
Freehold of 100 Frognal and long lease of Flat A 784,700 . - 784,700
Long lease of Flat 10a, Dennington ParkMansions
1,071
CBF Investment Fund shares		 438,500
0		 :
20,000		 -
.		 438,500
20,000
2,052
Barclays Bank shares		 11,110 : (11,110) .
42,222 AMP Ltd Ordinary shares 63,789 : (63,789) :
343
Janus Henderson Group shares		 4,603 : (1,603)
1,501 M& G Charifund units 18,000
1,317,702		 .
20,000		 -
(76,502)		 18,000
1,261,200

A8

The Parish Church of St John-at-Hampstead

.

Note 15 Creditors Other Creditors include related party balances due to the Friends of the Drama of £11,896, Hampstead Additional Burial Ground £1,561 and a £25,000 interest free loan from Parishioners. (2019: £14,442, £1,225 and £25,000 respectively). Note 16 has further details on related parties.

Note 16 Related parties

Note 17
Restricted funds		 Balances Income Expenditure Transfers Gains Balances
1 January on 31 December
2020 investments 2020
Fabric and Plant Reserve 50,971 15,050 (11,644) 1,670 56,047
Giving Away Fund - 5,536 (5,536) -
Traidcraft - 2,485 (1,114) 1,371
Flowers 2,745 635 (587) 2,793
Refugee sponsorship 10,407 467 (2,193) 3,773 12,454
Community Choir - 3,422 (3,300) 122
Churches Together in Hampstead 26,858 3,704 (26,789) (3,773) -
Donald Barnes Memorial Fund 608 - - 608
91,589 31,299 (51,163) - 1,670 73,395
2019 93,590 37,976 (43,804) : 3,827 91,589

The purpose of the reserve is to hold sufficient funds to meet the repair obligations placed upon the trustees of the Church by the Act of Parliament of 1827 Paragraph 51. The Voluntary Rate, donations and earmarked gifts from parishioners are the main sources of income. In addition to the restricted reserve there is an unrestricted designated repair reserve with a balance of £577,035 (2019: £525,821).

Goods purchased from Traidcraft are sold to parishioners and surplus funds are gifted to Traidcraft Exchange.

AS

The Parish Church of St John-at-Hampstead

- Donald Barnes Memorial Fund

Fund created in 2013 in memory of the late Revd. Donald Barnes for the purpose of holding an annual lecture at St Peter's Church, Belsize Park. The lectures are organized by the Hampstead Christian Study Centre.

Note 18 Endowment funds Balances Income Expenditure (Losses)/ (Losses)/ Transfers Balances
4 January Gains on between 31 December
2020 investments Funds 2020
Frances Grossfield Memorial Fund 11,453 405 (358) (1,740) 9,760
John Cooling Fund 13,995 4,156 (550) (2,005) 15,596
Frederick EickhoffMemorial Fund 3,448 135 (135) (579) 2,869
Parish Development Fund 1,386,101 47,069 (13,651) (1,499) (25,000) 1,393,020
1,414,997
pe tA		 51,765 (14,694)
nen		 ee (5,823)
(25,000)
1,421,245
nnnnese
2019 1,397,914 54,154 (18,053) 5,982 (25,000) 1,414,997

- Frederick Eickhoff Memorial Fund (established 2008) supports the training of the junior choir.

Each Fund is an Expendable Endowment as defined by the Charities Act, 2011.

Note 19 Contingent liabilities There are no contingent liabilities (2019: nil). Note 20 Capital commitments Contracted by the PCC nil (2019: nil). Authorised by the PCC but not contracted nil (2019: nil)

Note 21 Pensions liability

SCHEME: TPT Retirement Solutions- The Growth Plan

The PCC participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the PCC to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a ‘last-man standing arrangement’. Therefore the PCC is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A10

The Parish Church of St John-at-Hampstead

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 31 January 2025: £11.24m per annum (payable monthly and increasing by 3% on each 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the PCC has agreed to a deficit funding arrangement, a deficit funding arrangement, the PCC recognises a the PCC recognises a liability for
this obligation. Theamount recognised is the net presentvalue of the deficit reduction contributions payable undertheagreement
that relates to the deficit. The present value is calculated usingthe discount rate detailed in these disclosures. The unwinding of
the discount rate is recognised as a finance cost.
31 December 31 December
PRESENT VALUES OF PROVISION 2020 2019
£ £
Present value of provision 20,153 20,153
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Provision at start ofyear 20,153 27,490
Unwinding ofthe discount factor (interest expense) 204 - 369 :
Deficitcontribution paid (3,838) - (3,784) -
Remeasurements - impact ofanychange in assumptions 289 - 390 -
Remeasurements - amendments to the contribution schedule - - (4,312) :
(3,345) (3,345) (7,337) (7,337)
Provision at end ofyear 16,808 20,153
IMPACT ON STATEMENT OF FINANCIAL ACTIVITIES
Interest expense 204 369
Remeasurements - impact ofanychange in assumptions 289 390
Remeasurements - amendments to the contribution schedule - (4,312)
Contributions paid in respectof future service* 4,402 2,944
Costsrecognisedinincomeandexpenditureaccount Note7 3,838 3,784

‘includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.

ASSUMPTION 31 December 2020 2019 2018 Rate of discount 0.27% 1.13% 4.75%

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan

All

The Parish Church of St John-at-Hampstead

Note 22 Grants and donations to charities 2020 2020 2020 2019 2019
Unrestricted Restricted Combined Combined £
Church Overseas- Missionary Societies
ALMA 1,800 - 3,450
Dethi Brotherhood : : 628
Embrace the Middle East 1,800 1,700
US. unrestricted 1,800 : 4,700
5,400 - 5,400 7,478
Overseas- Relief
& Development Agencies
Asra Hawariat School 1,000 . 1,000
Bethlehem Arab Society for Rehabilitation 1,000 - 1,000
Practical Action 1,000 - 1,000
Island Hospice Zimbabwe 1,000 - 1,000
Send a Cow . 715 600
Sightsavers 1,000 - 1,000
Christian Aid 2,000 - 2,000
7,000 715 7,715 7,600
UK Missions and otherChurch organisations
Bishop of Edmonton's Discretionary Fund - - 517
Bishap of London's Lent Appeal - - 2,408
Caris Haringey 2,000 2,489 3,000
Church of England's Children Society 2,000 641 2,531
Caris Camden/Caris Families 2,000 688 3,920
London Churches Refugee Fund 2,000 - 2,000
North Camden Deanery . : 205
C4WS - 31 :
PSALM 600 - 600
8,600 3,849 12,449 15,181
Hampstead Parochial School 1,000 - 1,000 1,000 1,000
Secular charities
Citizens UK 700 : 700
Hampstead Counselling Service - : 1,000
Solace - 640 :
Soldiers Sailors & Airmen’s Families Assn - - 694
Age UK (Camden) 1,500 - 2,000
Traidcraft Foundation 268 332 330
XLP 1,000 - 1,000
Freedom from Torture 2,000 : 2,330
5,468 972 6,440 8,054
Sub-total 27,468 5,536 33,004 39,313
ChurchesTogetherinHampstead 30,562 30,562

Ai2

The Parish Church of St John-at-Hampstead

Note 23 Prior period comparative statement of financial activities.

Statement of Activities for year ending 31 Statement of Activities for year ending 31 Statement of Activities for year ending 31 Statement of Activities for year ending 31 December 2019
Incomefrom: General Designated Restricted Endowment
Fund Fund Funds Funds Combined
£ £ £ £ £
Donations and legacies 310,374 - 36,058 2,500 348,932
Other trading activities 50,552 - 581 : 51,133
Investments 4,584
-
365,510[-		 1,337
37,976		 51,654
54,154		 [
Expenditure on:
Raising funds
Charitable activities
Total resourcesexpended		 390,387
8,284
398,671;-		 59,179
.
-		 41,625
2,179
43,804		 4,783
43,270
18,053		 [
Net income before gains on
investments (33,161) “ (5,828) 36,101 (62,067)
Net Gain on investments - - 3,827 5,982 9,809
Netincome before transfers (33,161) - (2,001) 42,083 (52,258)
Transfers between funds 25,000 - : (25,000) -
Netincome after transfers (8,161) . (2,001) 17,083 (52,258)
Other recognised gains/losses:
Actuarial gain on defined benefit
pension scheme		 n 7,337 . . . 7,337
Net movement in funds (824) - (2,001) 17,083 (44,921)
Reconciliation ofFunds
Total Funds brought forward		 17,106
585,000
93,590
1,397,914
ara
cs		 2,093,610
Total Funds carried forward 16,282
———————————		 585,000 91,589
1,414,997
ne		 2,048,689
——$—————

;

A13

The Parish Church of St John-at-Hampstead

Independent examiner’s report to the members of the Parochial Church Council of St John-at-Hampstead (registered charity 1129264)

| report to the PCC on my examination of the accounts of the PCC of St John-at-Hampstead for the year ended 31 December 2020.

Responsibilities and basis of report

As the members of the PCC you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

| report in respect of my examination of the PCC’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination | have followed alt the applicable Directions given by the Charity Commission under section 154(5)(b) of the Act. The charity’s gross income exceeded £250,000 and | am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

Independent examiner’s statement

| have completed my examination. | confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not comply with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a “true and fair” view which is not a matter considered as part of an independent examination.

| have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report to enable a proper understanding of the accounts to be reached.

[/fd.(SheMA Robert Ashdown Chartered Accountant 75 Brookville Road, London, SW6 7BH

22 February 2021

A155