Holy Trinity Church, Frome
End of Year Financial Statements
31 December 2020
Holy Trinity Frome, Financial Report 2020
Page 1
FINANCIAL REVIEW
This report covers the financial year and calendar year 2020. This year will of course always be remembered for the impact of the COVID-19 pandemic which affected every single aspect of Holy Trinity’s significant spectrum of activities from Praise and Worship, Toddlers and through to Finances. While the Government’s assistance schemes helped our Staff costs, particularly the Children and Youth Fund, and the Bridge Fund with assistance to small businesses, the General Fund suffered significantly from reduced offerings.
Total receipts on the ordinary unrestricted fund, which represent the General Fund only, were £127,314 and are detailed in the Financial Statements. For direct comparison purpose with last year (2019) the unrestricted General Fund income was £164,246. Hence a reduction on income, year on year of £36,932. Total expenditure in the year from such income amounted to £137,972. The largest item was our Parish Share of £99,834 which was paid to the Diocese of Bath and Wells to enable it to provide the parish with clergy and support services. The net result for these funds was a deficit of £10,657 compared with a surfeit of £12,057 in 2019 and surfeit of £25,615 in 2018. Government assistance to these costs was £3,021 from Staff Furlough schemes.
Designated Funds total receipts were £36,859 and expenditure was £45,294 resulting in a deficit of £8,435. Previously, the PCC decided to set up a Debt Centre with a part time, 2 days per week employee being the Debt Counsellor, this had been planned to commence early April 2020, working closely with CAP (Christians against poverty). Accordingly, a Debt Counselling fund was set up with an initial amount of £40,000 so allocated. This was first set up as a Designated Fund but as may be seen in these accounts this was then transferred to a Restricted Fund, the reasoning behind this being that it may be easier to gain external donations for the Debt Centre if such donations are locked into supporting the centre itself.
Restricted Funds, which are; Children & Youth, Debt Centre, Fabric and the Redevelopment Funds had an income of £51,657 and an expenditure of £32,087 resulting in a surfeit of £19,570. This surfeit is entirely due to Government assistance with Grants and Staff Furlough schemes which amounted to £21,441.
The PCC has continued its long-standing policy of giving (tithes) 10% of general income to mission which for 2020 has included support for ministry in Bitola, North Macedonia and our association with the fledgling evangelical church there through TEN. Charitable giving in 2020 has exceeded our guideline of the PCC tithing policy at £12,141 compared with giving at £106,813.
Following the PCC decision to support the C & Y Fund by an amount of £350 per month from the General Fund, which commenced in October 2019 this fund has enjoyed an excess of income over expenditure, even more so with the Governments Staff Furlough scheme. Accordingly, it was decided to temporarily cease this support, however through 2020 such support has totaled £2,800. Toddlers of course ceased to operate as of March 2020 and has consequently not provided Toddler’s contribution of the usual £1,000 towards the C & Y fund.
The Fabric Fund has a negative balance of £7,124, an increase from last year due to the cost of the quinquennial survey. This negative balance is slowly being reduced as income is realised from investment allocated only to Fabric, through 2020 this income amounted to £682
The Redevelopment (restricted) Fund was also resourced by a loan from The Diocese for £100,000 which is due for repayment over 10 years (2017-2027) repayments made to the end of this report period total £40,000. The redevelopment Fund stands at a negative £47,883 at the year-end which takes account of the outstanding £60,000 loan liability. Giving to the redevelopment fund has reduced as previously reported, however, following a significant lump sum given in 2020, we are now able to service the Diocesan Loan this year, 2021, but this will be a challenge to service from this fund, from 2022 onward.
The Bridge account had an income of £15,225 mostly due to a Government grant of £10,000. The Bridge expenditure was £9,476 almost entirely due to fixed costs, Rent and Maintenance, the PCC has decided to carry out significant maintenance at The Bridge through 2020 and into 2021. The Bridge management has been taken over by John and Wendy Rootes as of 01 April 2020 and they and the Team have continued work when able to do so under the COVID-19 restrictions.
The Hall Fund income has significantly suffered due to COVID-19 restrictions resulting in a deficit of £6,440, while the Hall Hire Income runs the direct Hall expenses, as previously noted in my annual reports, the General Church suffers cost for Administration and other aspects that are paid from our General Fund. The Hall is normally contra
Holy Trinity Frome, Financial Report 2020
Page 2
charged by the General Fund a sum to cover these appropriate costs, however this year such contra charge has not been put into effect.
Charitable Status
Holy Trinity Church is registered with the Charity Commission as The Parochial Church Council of the Ecclesiastical Parish of Holy Trinity, Frome. Registered number 1129366.
Reserves Policy
It is PCC policy to maintain a balance on unrestricted funds which covers two months of Parish Share payments to cover cash flow problems near the year end and to cope with unforeseen situations. Some funds are invested in CBF deposit funds. However, it can be realized from these accounts that the Church finances, while having suffered due to COVID-19 are in a reasonable state. The Diocese offered financial support to parishes suffering financially due to COVID-19 however Holy Trinity both decided not to apply for this support and indeed would almost certainly not have satisfied the qualifying criteria.
Outlook and Budget
We will have to service the Diocesan Loan, for the TT-TL project, at a repayment rate of £10,000 per year for the next 6 years. We currently have no plan or pledges to cover this, however this fund is in credit and can currently service the next 1 + years.
The Children and Youth workers Fund is now significantly more secure following Government Staff Furlough schemes. The Toddlers fund will recover as and when Toddlers activities re-commence.
Members should be aware that the Children and Youth and Debt Centre are separate funds, as is Redevelopment, and if not specifically noted and supported by your giving then they enjoy no other income, furthermore these are Restricted Funds and monies can only be spent on their defined purposes except in extreme circumstances.
The Church members’ giving has been significantly affected by COVID-19 restrictions. It may be realised from these accounts that offerings on the plate each week as cash, totaled £26.925 in 2019 but only £9,918 in 2020, a reduction of £17,007, in addition standing orders and other regular giving reduced by £7,821. This also reduced Gift Aid reclaims by an amount of £4,701. These reductions total £29,529 being 80% of the reduced income noted above, the remaining reductions being loss of church rent payments, fees and catering profits. Our Parish Share for 2021 is based upon reporting to the diocese completed in April 2020 covering the church attendance for the previous year, 2019. Accordingly, this year, 2021 our Parish Share is £97,553; while the financial outlook for 2021 remains acceptable, due to our reserves in the General Fund being £66,820 we look forward to church returning to normal and members numbers remain as pre COVID-19 with the associated income.
As an aside a Legacy to a Registered Charity, such as Holy Trinity, can be a very efficient way to reduce Inheritance Tax rates, and provide funding to the charity, the legacy is therefore significantly greater than the drawdown on inherited assets, due to the remaining taxable inheritance being taxed at a reduced rate. If anyone is interested in this matter please talk with me.
03 March 2021
Chris Round,
Treasurer, HTC On Behalf of the Parochial Church Council
Approved at PCC meeting held on 14 April 2020, conditional on Independent Examiner’s report.
Holy Trinity Frome, Financial Report 2020
Page 3
Statement of Financial Activities
For the period from 01 January 2020 to 31 December 2020
| Unrestricted | Designated | Restricted | Endowment | Total | Prior year | |
|---|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | Funds | Total Funds | |
| Incoming resources | ||||||
| Incoming resources from generated funds | ||||||
| Voluntary income | 121,402 | 19,295 | 39,533 | — | 180,232 | 196,776 |
| Activities for generating funds | 1,564 | 7,563 | — | — | 9,127 | 28,017 |
| Investment income | 375 | — | 682 | — | 1,057 | 1,404 |
| Incoming resources from charitable activities | 951 | — | — | — | 951 | 3,173 |
| Other incoming resources | 3,021 | 10,000 | 11,441 | — | 24,463 | — |
| Total income | 127,314 | 36,859 | 51,657 | — | 215,831 | 229,370 |
| Resources used | ||||||
| Costs of generating funds | ||||||
| Costs of generating voluntary income | — | — | 699 | — | 699 | 965 |
| Fundraising trading: cost of goods sold and other costs | — | 661 | — | — | 661 | 1,721 |
| Charitable activities | 137,972 | 44,632 | 31,388 | — | 213,994 | 202,715 |
| Total expenditure | 137,972 | 45,294 | 32,087 | — | 215,354 | 205,402 |
| Net income / (expenditure) resources before transfer | (10,657) | (8,435) | 19,570 | — | 477 | 23,968 |
| Transfers | ||||||
| Gross transfers between funds - in | — | 329 | 34,645 | — | 34,974 | 40,101 |
| Gross transfers between funds - out | (329) | (34,645) | — | — | (34,974) | (40,101) |
| Other recognised gains / losses | ||||||
| Gains / losses on investment assets | — | — | — | 1,684 | 1,684 | 3,979 |
| Net movement in funds | (10,986) | (42,751) | 54,215 | 1,684 | 2,161 | 27,948 |
| Reconciliation of funds | ||||||
| Total funds brought forward | 77,807 | 74,857 | (45,439) | 26,214 | 133,440 | 105,491 |
| Total funds carried forward | 66,820 | 32,106 | 8,776 | 27,898 | 135,601 | 133,440 |
| Represented by | ||||||
| Unrestricted | ||||||
| General fund | 66,820 | — | — | — | 66,820 | 77,807 |
| Designated | ||||||
| Church Hall Revenue Fund | — | (3,780) | — | — | (3,780) | 2,660 |
| Debt Counselling | — | — | — | — | — | 40,000 |
| Fin Assistance to self empl | — | 2,813 | — | — | 2,813 | — |
| Parish Nurse | — | 15,742 | — | — | 15,742 | 26,745 |
| Parish Weekend away | — | 34 | — | — | 34 | 34 |
| The Bridge | — | 10,532 | — | — | 10,532 | 4,454 |
| Toddlers Fund | — | 763 | — | — | 763 | 963 |
| Young Adult Ministry | — | 6,000 | — | — | 6,000 | — |
| Restricted | ||||||
| Children & Youth Worker Fund | — | — | 30,643 | — | 30,643 | 21,416 |
| Debt Counselling | — | — | 33,140 | — | 33,140 | — |
| Fabric Fund | — | — | (7,124) | — | (7,124) | (6,971) |
| Redevelopment Fund | — | — | (47,883) | — | (47,883) | (59,884) |
| Endowment | ||||||
| Investments | — | — | — | 27,898 | 27,898 | 26,214 |
Holy Trinity Frome, Financial Report 2020
Page 4
Balance sheet
Total funds Prior year funds
| Fixed assets Tangible assets Investments Current assets Debtors Investments Cash at bank and in hand Net current assets less current liabilities Total assets less current liabilities Liabilities Creditors: Amounts falling due after more than one year Total net assets less liabilities Represented by Unrestricted Unrestricted - General fund Designated Designated - Fin Assistance to self empl Designated - Debt Counselling Designated - Parish Nurse Designated - Parish Weekend away Designated - Young Adult Ministry Designated - Church Hall Revenue Fund Designated - The Bridge Designated - Toddlers Fund Designated - Rob & Sue Fund Restricted Restricted - Debt Counselling Restricted - Fabric Fund Restricted - Redevelopment Fund Restricted - Children & Youth Worker Fund Endowment Endowment - Investments Funds of the church |
1,532 27,898 29,430 6,464 13,810 145,895 166,170 166,170 195,601 60,000 135,601 66,820 2,813 — 15,742 34 6,000 (3,780) 10,532 763 — 33,140 (7,124) (47,883) 30,643 27,898 135,601 |
5,959 26,214 32,173 10,363 13,752 147,150 171,266 |
|---|---|---|
| 171,266 | ||
| 203,440 | ||
| 70,000 | ||
| 133,440 | ||
| 77,807 — 40,000 26,745 34 — 2,660 4,454 963 — — (6,971) (59,884) 21,416 26,214 |
||
| 133,440 |
Holy Trinity Frome, Financial Report 2020
Page 5
Statement of assets and liabilities
| Class and nominal code | General | Designated | Restricted | Endowment | Total | Last year |
|---|---|---|---|---|---|---|
| Fixed assets | ||||||
| A1001 : Hall & Link | — | — | — | — | — | 483.36 |
| A1003 : Office | 1,532.31 | — | — | — | 1,532.31 | 1,802.21 |
| A1005 : Investments | — | — | — | 27,898.29 | 27,898.29 | 26,214.21 |
| A1006 : Hall | — | — | — | — | — | 3,673.49 |
| Total | 1,532.31 | — | — | 27,898.29 | 29,430.60 | 32,173.27 |
| Current assets | ||||||
| B3040 : The Bridge Current | 581.61 | 9,320.47 | — | — | 9,902.08 | 4,108.22 |
| Account | ||||||
| B3041 : The Bridge Cash | — | 317.49 | — | — | 317.49 | 67.02 |
| C3011 : Children & Youth Worker | (161.06) | 41.13 | 10,232.56 | — | 10,112.63 | 13,533.70 |
| Fund | ||||||
| D3050 : Redevelopment Fund | 5,351.14 | — | 2,398.19 | — | 7,749.33 | 7,449.13 |
| F3060 : Fabric CBF Deposit | — | — | 929.27 | — | 929.27 | 925.40 |
| G3010 : General Current Account | 36,105.75 | 2,699.36 | 52,722.49 | — | 91,527.60 | 55,902.69 |
| G3010 : General Current Account | — | — | — | — | — | 40,000.00 |
| G3011 : General CBF Deposit | 12,829.36 | — | 51.95 | — | 12,881.31 | 12,826.84 |
| G3014 : General Cash Imprest | 81.50 | — | — | — | 81.50 | 81.50 |
| G3016 : Parish Weekend | (0.84) | — | — | — | (0.84) | (0.84) |
| G3016 : Parish Weekend | — | 34.84 | — | — | 34.84 | 34.84 |
| H3020 : Hall Current Account | 6,520.42 | 19,650.31 | — | — | 26,170.73 | 25,974.43 |
| Z05 : Accounts Receivable | 3,980.48 | 42.50 | 2,441.69 | — | 6,464.67 | 10,363.89 |
| Total | 65,288.36 | 32,106.10 | 68,776.15 | — | 166,170.61 | 171,266.82 |
| Liabilities | ||||||
| ZZZ11 : Loan | — | — | 60,000.00 | — | 60,000.00 | 70,000.00 |
| Total | — | — | 60,000.00 | — | 60,000.00 | 70,000.00 |
| Net total assets | 66,820.67 | 32,106.10 | 8,776.15 | 27,898.29 | 135,601.21 | 133,440.09 |
Holy Trinity Frome, Financial Report 2020
Page 6
Fund movement by type
| Fund and type | Fund balances | Incoming | Outgoing | Transfers | Gains and | Journal | Fund balances |
|---|---|---|---|---|---|---|---|
| brought forward | Resources |
Resources | Losses |
Entries | carried forward | ||
| Unrestricted | |||||||
| General - General fund | 77,807 | 127,314 | 137,972 | (329) | — | — | 66,820 |
Sub-totals |
77,807 | 127,314 | 137,972 | (329) | — | — | 66,820 |
| Designated | |||||||
| COVID-19 - Fin Assistance | — | 7,313 | 4,500 | — | — | — | 2,813 |
| to self empl | |||||||
| DEBTCOUN - Debt | 40,000 | 475 | 5,829 | (34,645) | — | — | — |
| Counselling | |||||||
| Nurse - Parish Nurse | 26,745 | 2,482 | 13,484 | — | — | — | 15,742 |
| Weekend - Parish | 34 | — | — | — | — | — | 34 |
| Weekend away | |||||||
| YAM - Young Adult | — | 6,000 | — | — | — | — | 6,000 |
| Ministry | |||||||
| Hall - Church Hall | 2,660 | 4,483 | 10,923 | — | — | — | (3,780) |
| Revenue Fund | |||||||
| Bridge - The Bridge | 4,454 | 15,225 | 9,476 | 329 | — | — | 10,532 |
| Toddlers - Toddlers | 963 | 879 | 1,080 | — | — | — | 763 |
| Fund | |||||||
| Rob&sue - Rob & Sue | — | — | — | — | — | — | — |
| Fund | |||||||
| Sub-totals | 74,857 | 36,859 | 45,294 | (34,316) | — | — | 32,106 |
| Restricted | |||||||
| DEBTCOUN - Debt | — | 250 | 1,754 | 34,645 | — | — | 33,140 |
| Counselling | |||||||
| Fabric - Fabric Fund | (6,971) | 682 | 834 | — | — | — | (7,124) |
| Redevelop - | (59,884) | 12,700 | 699 | — | — | — | (47,883) |
| Redevelopment Fund | |||||||
| C&youth - Children & | 21,416 | 38,025 | 28,798 | — | — | — | 30,643 |
| Youth Worker Fund | |||||||
| Sub-totals | (45,439) | 51,657 | 32,087 | 34,645 | — | — | 8,776 |
| Endowment | |||||||
| Coif - Investments | 26,214 | — | — | — | 1,684 | — | 27,898 |
| Sub-totals | 26,214 | — | — | — | 1,684 | — | 27,898 |
| Totals | 133,440 | 215,831 | 215,354 | — | 1,684 | — | 135,601 |
Holy Trinity Frome, Financial Report 2020
Page 7
Analysis of income and expenditure
| Total | ||||||
|---|---|---|---|---|---|---|
| Unrestricted | Designated | Restricted | Endowment | This year Last year | ||
| Incoming resources | ||||||
| Incoming resources from generated funds | ||||||
| D0030 - Change | 9,918 | — | 207 | — | 10,125 | 27,524 |
| D0031 - Donations | 21,368 | 13,240 | 7,157 | — | 41,766 | 30,635 |
| D0032 - Grants & Legacies | — | — | — | — | — | — |
| D0040 - Sundry | 204 | 297 | 16 | — | 518 | 5 |
| D0041 - Events | — | — | — | — | — | 2,803 |
| D0042 - Fabric | — | — | — | — | — | — |
| D0043 - Books | 89 | — | — | — | 89 | 113 |
| D0044 - Toddlers | — | 879 | — | — | 879 | 3,063 |
| P0010 - Standing Orders | 68,313 | 3,980 | 27,525 | — | 99,818 | 97,103 |
| P0011 - Envelopes | 5,403 | — | — | — | 5,403 | 9,978 |
| P0020 - Inland Revenue Refund | 16,104 | 897 | 4,628 | — | 21,630 | 25,548 |
| P0021 - Vat: Listed places of Worship | — | — | — | — | — | — |
| Scheme | ||||||
| B0060 - Photocopying | 115 | — | — | — | 115 | 37 |
| B0061 - Windows | — | — | — | — | — | — |
| B0062 - Catering | 798 | — | — | — | 798 | 3,650 |
| B0063 - Sales not used | — | — | — | — | — | — |
| B0064 - Sales not used 2 | — | — | — | — | — | — |
| B0065 - Sales not used 3 | — | — | — | — | — | — |
| B0066 - sales not used 4 | — | — | — | — | — | — |
| B0067 - Rent | 650 | 866 | — | — | 1,516 | 5,149 |
| B0068 - Bridge Sales | — | 2,490 | — | — | 2,490 | 6,201 |
| H0070 - Hall Hire | — | 4,206 | — | — | 4,206 | 12,977 |
| C0050 - Current Interest | 248 | — | 3 | — | 252 | 615 |
| I0051 - 1/2T Int | 126 | — | — | — | 126 | 124 |
| I0052 - 3T Int | — | — | 678 | — | 678 | 664 |
| Incoming resources from | 123,342 | 26,859 | 40,215 | — | 190,417 | 226,197 |
| generated funds Totals | ||||||
| Incoming resources from charitable activities | ||||||
| F0080 - Fees | 951 | — | — | — | 951 | 3,173 |
| Incoming resources from | 951 | — | — | — | 951 | 3,173 |
| charitable activities Totals | ||||||
| Other incoming resources | ||||||
| D0033 - Redev Fabric Congregational | — | — | — | — | — | — |
| Loan | ||||||
| P0023 - HMRS Job Ret Sch COVID-19 19 | 3,021 | 10,000 | 11,441 | — | 24,463 | — |
| Other incoming resources Totals | 3,021 | 10,000 | 11,441 | — | 24,463 | — |
| Incoming resources Grand | 127,314 | 36,859 | 51,657 | — | 215,831 | 229,370 |
| totals |
Holy Trinity Frome, Financial Report 2020
Page 8
| Resources used Costs of generating funds A1011 - Fund Raising Expenses INT - Interest Paid B1062 - Bridge Purchases B1063 - Purchase not used B1064 - Purchases not used 2 B1065 - Purchases not used 3 B1066 - Purchases not used 4 Costs of generating funds Totals Charitable activities A0010 - Preliminaries B1067 - Rent B1068 - Rates & water Rates C1010 - Church Overseas C1011 - Relief & Development C1020 - Home Missions C1021 - Secular Charities D1050 - Parish Share E1040 - Outreach E1041 - Discipleship F1030 - Depreciation 01 H1060 - Cleaner R1090 - Insurance R1091 - Cleaning R1092 - Administrator R1093 - Maintenance R1094 - Stationery R1095 - Telephone R1096 - Equipment R1097 - Sundries R1098 - Petty Cash R1099 - Catering S1080 - Music S1081 - Heat & Light S1082 - Books S1083 - Services S1084 - Events S1085 - Clergy S1086 - Bank Charges Y1001 - Fabric Y1070 - Wages Y1071 - Expenses Z99999 - Depreciation Charitable activities Totals Other resources used A1012 - Architects Fees A1013 - Co-ordinator Fees A1014 - Design costs A1015 - Building and Construction Costs A1016 - Furnishings and equipment Other resources used Totals Resources used Grand totals |
Total Unrestricted Designated Restricted Endowment This year Last year |
|
|---|---|---|
— — — — — — — — 699 — 699 965 — 661 — — 661 1,721 — — — — — — — — — — — — — — — — — — — — — — — — |
||
| — 661 699 — 1,360 2,687 — — — — — — 180 5,133 — — 5,313 5,880 194 383 — — 578 926 5,625 — — — 5,625 9,269 — — — — — 2,255 1,800 205 — — 2,005 8,699 — — — — — — 99,834 — — — 99,834 91,721 3,384 5,535 464 — 9,383 181 — — — — — — — — — — — — 1,899 2,063 — — 3,962 6,227 1,031 738 — — 1,770 1,773 — 162 — — 162 297 10,927 — — — 10,927 10,397 2,397 3,558 — — 5,956 2,444 429 — — — 429 2,075 639 300 — — 940 832 — 847 — — 847 — 2,846 1,312 — — 4,159 4,800 — 100 — — 100 200 — — — — — 386 — — — — — 756 3,553 2,369 — — 5,922 7,227 — — — — — 280 428 — — — 428 859 — — — — — 458 — — — — — 1,955 327 — 15 — 342 422 — — 834 — 834 — 572 15,937 29,774 — 46,284 39,181 1,630 1,827 300 — 3,757 1,064 269 4,156 — — 4,426 2,139 |
||
| 137,972 44,632 31,388 — 213,994 202,715 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — |
||
| — — — — — — |
||
| 137,972 45,294 32,087 — 215,354 205,402 |
Holy Trinity Frome, Financial Report 2020
Page 9
Notes to the financial statements
For the year ended 31 December 2020
ACCOUNTING POLICIES
The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the SORP 2015 SOFA.
The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.
Funds
Endowment funds are funds, the capital of which must be maintained; only income arising from investment of the endowment may be used either as restricted or unrestricted funds depending upon the purpose for which the endowment was established.
Restricted funds represent (a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest, and (b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. The PCC does not usually invest separately for each fund. Where there is no separate investment, interest is apportioned to individual funds on an average balance basis.
Unrestricted funds are general funds which can be used for PCC ordinary purposes.
Incoming resources
Planned giving, collections and donations are recognized when received. Tax refunds are recognized when the incoming resource to which they relate is received. Grants and legacies are accounted for when the PCC is legally entitled to the amounts due. Dividends are accounted for when receivable, interest is accrued. All other income is recognised when it is receivable. All incoming resources are accounted for gross.
Resources expended
Grants and donations are accounted for when paid over or when awarded, if that award creates a binding or constructive obligation on the PCC. The diocesan parish share is accounted for when due. Amounts received specifically for mission are dealt with as restricted funds. All other expenditure is generally recognized when it is incurred and is accounted for gross.
Fixed assets
Consecrated and benefice property is not included in the accounts in accordance with s.96(2) (a) of the Charities Act 1993. Movable church furnishings held by the vicar and churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the church’s inventory, which can be inspected (at any reasonable time). For anything acquired prior to 2004 there is insufficient cost information available and therefore such assets are not valued in the financial statements. Furthermore all matters pertaining to the Redevelopment Works are not valued in the financial statements and are not considered as assets to be depreciated or replaced.
Equipment used within the church premises is depreciated on a reducing balance basis, at 15% for furniture and fixtures, and 25% for office equipment. Individual items of £100 or less are written off when the asset is acquired, and assets that are considered to have exceed a reasonable life expectancy are written off at that time.
Investments are valued at market value 31 December 2020
Holy Trinity Frome, Financial Report 2020
Page 10
2 CHARITABLE DONATIONS
| 2 CHARITABLE DONATIONS FEBA – B&M Adams C&N Moreton Christian aid REAP Africa Bath One Good Friday Pageant C & Y Fund Wycliffe FACT Grant to support training in Pioneer Ministry Others Hardship Fund Church/Bridge Neighbourhood Chaplains --- Frome Food Bank Bitola, Macedonia, Church twinning DEC Cyclone Idai appeal Friends of Somerset Churches Bridge Teas 3 FIXED ASSET (a) Tangible Actual / deemed cost at 1st Jan Disposal Additions at cost At 31st December Depreciation at 1st Jan Withdrawn on disposal Charge for the year Depreciation at 31st December (b) Investments Market value at 1st January Purchases Disposals Revaluation At 31st December |
2020 £ 2500 2500 300 --- 300 2800 1000 210 --- 148 1033 300 --- 1000 --- 50 -- |
2019 £ 2500 2000 438 500 -- -- 1000 693 2500 1220 1544 200 475 2830 2255 50 180 |
|---|---|---|
| 12141 38407 --- --- 38407 32448 4426 36874 26214 1684 27898 |
18385 38907 500 --- |
|
| 38407 | ||
| 30809 1639 |
||
| 32448 | ||
| 22234 3979 |
||
| 26214 |
:
Holy Trinity Frome, Financial Report 2020
Page 11
Holy Trinity Church, Frome
End of Year Financial Statements
31 December 2020
Holy Trinity Frome, Financial Report 2020
Page 1
FINANCIAL REVIEW
This report covers the financial year and calendar year 2020. This year will of course always be remembered for the impact of the COVID-19 pandemic which affected every single aspect of Holy Trinity’s significant spectrum of activities from Praise and Worship, Toddlers and through to Finances. While the Government’s assistance schemes helped our Staff costs, particularly the Children and Youth Fund, and the Bridge Fund with assistance to small businesses, the General Fund suffered significantly from reduced offerings.
Total receipts on the ordinary unrestricted fund, which represent the General Fund only, were £127,314 and are detailed in the Financial Statements. For direct comparison purpose with last year (2019) the unrestricted General Fund income was £164,246. Hence a reduction on income, year on year of £36,932. Total expenditure in the year from such income amounted to £137,972. The largest item was our Parish Share of £99,834 which was paid to the Diocese of Bath and Wells to enable it to provide the parish with clergy and support services. The net result for these funds was a deficit of £10,657 compared with a surfeit of £12,057 in 2019 and surfeit of £25,615 in 2018. Government assistance to these costs was £3,021 from Staff Furlough schemes.
Designated Funds total receipts were £36,859 and expenditure was £45,294 resulting in a deficit of £8,435. Previously, the PCC decided to set up a Debt Centre with a part time, 2 days per week employee being the Debt Counsellor, this had been planned to commence early April 2020, working closely with CAP (Christians against poverty). Accordingly, a Debt Counselling fund was set up with an initial amount of £40,000 so allocated. This was first set up as a Designated Fund but as may be seen in these accounts this was then transferred to a Restricted Fund, the reasoning behind this being that it may be easier to gain external donations for the Debt Centre if such donations are locked into supporting the centre itself.
Restricted Funds, which are; Children & Youth, Debt Centre, Fabric and the Redevelopment Funds had an income of £51,657 and an expenditure of £32,087 resulting in a surfeit of £19,570. This surfeit is entirely due to Government assistance with Grants and Staff Furlough schemes which amounted to £21,441.
The PCC has continued its long-standing policy of giving (tithes) 10% of general income to mission which for 2020 has included support for ministry in Bitola, North Macedonia and our association with the fledgling evangelical church there through TEN. Charitable giving in 2020 has exceeded our guideline of the PCC tithing policy at £12,141 compared with giving at £106,813.
Following the PCC decision to support the C & Y Fund by an amount of £350 per month from the General Fund, which commenced in October 2019 this fund has enjoyed an excess of income over expenditure, even more so with the Governments Staff Furlough scheme. Accordingly, it was decided to temporarily cease this support, however through 2020 such support has totaled £2,800. Toddlers of course ceased to operate as of March 2020 and has consequently not provided Toddler’s contribution of the usual £1,000 towards the C & Y fund.
The Fabric Fund has a negative balance of £7,124, an increase from last year due to the cost of the quinquennial survey. This negative balance is slowly being reduced as income is realised from investment allocated only to Fabric, through 2020 this income amounted to £682
The Redevelopment (restricted) Fund was also resourced by a loan from The Diocese for £100,000 which is due for repayment over 10 years (2017-2027) repayments made to the end of this report period total £40,000. The redevelopment Fund stands at a negative £47,883 at the year-end which takes account of the outstanding £60,000 loan liability. Giving to the redevelopment fund has reduced as previously reported, however, following a significant lump sum given in 2020, we are now able to service the Diocesan Loan this year, 2021, but this will be a challenge to service from this fund, from 2022 onward.
The Bridge account had an income of £15,225 mostly due to a Government grant of £10,000. The Bridge expenditure was £9,476 almost entirely due to fixed costs, Rent and Maintenance, the PCC has decided to carry out significant maintenance at The Bridge through 2020 and into 2021. The Bridge management has been taken over by John and Wendy Rootes as of 01 April 2020 and they and the Team have continued work when able to do so under the COVID-19 restrictions.
The Hall Fund income has significantly suffered due to COVID-19 restrictions resulting in a deficit of £6,440, while the Hall Hire Income runs the direct Hall expenses, as previously noted in my annual reports, the General Church suffers cost for Administration and other aspects that are paid from our General Fund. The Hall is normally contra
Holy Trinity Frome, Financial Report 2020
Page 2
charged by the General Fund a sum to cover these appropriate costs, however this year such contra charge has not been put into effect.
Charitable Status
Holy Trinity Church is registered with the Charity Commission as The Parochial Church Council of the Ecclesiastical Parish of Holy Trinity, Frome. Registered number 1129366.
Reserves Policy
It is PCC policy to maintain a balance on unrestricted funds which covers two months of Parish Share payments to cover cash flow problems near the year end and to cope with unforeseen situations. Some funds are invested in CBF deposit funds. However, it can be realized from these accounts that the Church finances, while having suffered due to COVID-19 are in a reasonable state. The Diocese offered financial support to parishes suffering financially due to COVID-19 however Holy Trinity both decided not to apply for this support and indeed would almost certainly not have satisfied the qualifying criteria.
Outlook and Budget
We will have to service the Diocesan Loan, for the TT-TL project, at a repayment rate of £10,000 per year for the next 6 years. We currently have no plan or pledges to cover this, however this fund is in credit and can currently service the next 1 + years.
The Children and Youth workers Fund is now significantly more secure following Government Staff Furlough schemes. The Toddlers fund will recover as and when Toddlers activities re-commence.
Members should be aware that the Children and Youth and Debt Centre are separate funds, as is Redevelopment, and if not specifically noted and supported by your giving then they enjoy no other income, furthermore these are Restricted Funds and monies can only be spent on their defined purposes except in extreme circumstances.
The Church members’ giving has been significantly affected by COVID-19 restrictions. It may be realised from these accounts that offerings on the plate each week as cash, totaled £26.925 in 2019 but only £9,918 in 2020, a reduction of £17,007, in addition standing orders and other regular giving reduced by £7,821. This also reduced Gift Aid reclaims by an amount of £4,701. These reductions total £29,529 being 80% of the reduced income noted above, the remaining reductions being loss of church rent payments, fees and catering profits. Our Parish Share for 2021 is based upon reporting to the diocese completed in April 2020 covering the church attendance for the previous year, 2019. Accordingly, this year, 2021 our Parish Share is £97,553; while the financial outlook for 2021 remains acceptable, due to our reserves in the General Fund being £66,820 we look forward to church returning to normal and members numbers remain as pre COVID-19 with the associated income.
As an aside a Legacy to a Registered Charity, such as Holy Trinity, can be a very efficient way to reduce Inheritance Tax rates, and provide funding to the charity, the legacy is therefore significantly greater than the drawdown on inherited assets, due to the remaining taxable inheritance being taxed at a reduced rate. If anyone is interested in this matter please talk with me.
03 March 2021
Chris Round,
Treasurer, HTC On Behalf of the Parochial Church Council
Approved at PCC meeting held on 14 April 2020, conditional on Independent Examiner’s report.
Holy Trinity Frome, Financial Report 2020
Page 3
Statement of Financial Activities
For the period from 01 January 2020 to 31 December 2020
| Unrestricted | Designated | Restricted | Endowment | Total | Prior year | |
|---|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | Funds | Total Funds | |
| Incoming resources | ||||||
| Incoming resources from generated funds | ||||||
| Voluntary income | 121,402 | 19,295 | 39,533 | — | 180,232 | 196,776 |
| Activities for generating funds | 1,564 | 7,563 | — | — | 9,127 | 28,017 |
| Investment income | 375 | — | 682 | — | 1,057 | 1,404 |
| Incoming resources from charitable activities | 951 | — | — | — | 951 | 3,173 |
| Other incoming resources | 3,021 | 10,000 | 11,441 | — | 24,463 | — |
| Total income | 127,314 | 36,859 | 51,657 | — | 215,831 | 229,370 |
| Resources used | ||||||
| Costs of generating funds | ||||||
| Costs of generating voluntary income | — | — | 699 | — | 699 | 965 |
| Fundraising trading: cost of goods sold and other costs | — | 661 | — | — | 661 | 1,721 |
| Charitable activities | 137,972 | 44,632 | 31,388 | — | 213,994 | 202,715 |
| Total expenditure | 137,972 | 45,294 | 32,087 | — | 215,354 | 205,402 |
| Net income / (expenditure) resources before transfer | (10,657) | (8,435) | 19,570 | — | 477 | 23,968 |
| Transfers | ||||||
| Gross transfers between funds - in | — | 329 | 34,645 | — | 34,974 | 40,101 |
| Gross transfers between funds - out | (329) | (34,645) | — | — | (34,974) | (40,101) |
| Other recognised gains / losses | ||||||
| Gains / losses on investment assets | — | — | — | 1,684 | 1,684 | 3,979 |
| Net movement in funds | (10,986) | (42,751) | 54,215 | 1,684 | 2,161 | 27,948 |
| Reconciliation of funds | ||||||
| Total funds brought forward | 77,807 | 74,857 | (45,439) | 26,214 | 133,440 | 105,491 |
| Total funds carried forward | 66,820 | 32,106 | 8,776 | 27,898 | 135,601 | 133,440 |
| Represented by | ||||||
| Unrestricted | ||||||
| General fund | 66,820 | — | — | — | 66,820 | 77,807 |
| Designated | ||||||
| Church Hall Revenue Fund | — | (3,780) | — | — | (3,780) | 2,660 |
| Debt Counselling | — | — | — | — | — | 40,000 |
| Fin Assistance to self empl | — | 2,813 | — | — | 2,813 | — |
| Parish Nurse | — | 15,742 | — | — | 15,742 | 26,745 |
| Parish Weekend away | — | 34 | — | — | 34 | 34 |
| The Bridge | — | 10,532 | — | — | 10,532 | 4,454 |
| Toddlers Fund | — | 763 | — | — | 763 | 963 |
| Young Adult Ministry | — | 6,000 | — | — | 6,000 | — |
| Restricted | ||||||
| Children & Youth Worker Fund | — | — | 30,643 | — | 30,643 | 21,416 |
| Debt Counselling | — | — | 33,140 | — | 33,140 | — |
| Fabric Fund | — | — | (7,124) | — | (7,124) | (6,971) |
| Redevelopment Fund | — | — | (47,883) | — | (47,883) | (59,884) |
| Endowment | ||||||
| Investments | — | — | — | 27,898 | 27,898 | 26,214 |
Holy Trinity Frome, Financial Report 2020
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Balance sheet
Total funds Prior year funds
| Fixed assets Tangible assets Investments Current assets Debtors Investments Cash at bank and in hand Net current assets less current liabilities Total assets less current liabilities Liabilities Creditors: Amounts falling due after more than one year Total net assets less liabilities Represented by Unrestricted Unrestricted - General fund Designated Designated - Fin Assistance to self empl Designated - Debt Counselling Designated - Parish Nurse Designated - Parish Weekend away Designated - Young Adult Ministry Designated - Church Hall Revenue Fund Designated - The Bridge Designated - Toddlers Fund Designated - Rob & Sue Fund Restricted Restricted - Debt Counselling Restricted - Fabric Fund Restricted - Redevelopment Fund Restricted - Children & Youth Worker Fund Endowment Endowment - Investments Funds of the church |
1,532 27,898 29,430 6,464 13,810 145,895 166,170 166,170 195,601 60,000 135,601 66,820 2,813 — 15,742 34 6,000 (3,780) 10,532 763 — 33,140 (7,124) (47,883) 30,643 27,898 135,601 |
5,959 26,214 32,173 10,363 13,752 147,150 171,266 |
|---|---|---|
| 171,266 | ||
| 203,440 | ||
| 70,000 | ||
| 133,440 | ||
| 77,807 — 40,000 26,745 34 — 2,660 4,454 963 — — (6,971) (59,884) 21,416 26,214 |
||
| 133,440 |
Holy Trinity Frome, Financial Report 2020
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Statement of assets and liabilities
| Class and nominal code | General | Designated | Restricted | Endowment | Total | Last year |
|---|---|---|---|---|---|---|
| Fixed assets | ||||||
| A1001 : Hall & Link | — | — | — | — | — | 483.36 |
| A1003 : Office | 1,532.31 | — | — | — | 1,532.31 | 1,802.21 |
| A1005 : Investments | — | — | — | 27,898.29 | 27,898.29 | 26,214.21 |
| A1006 : Hall | — | — | — | — | — | 3,673.49 |
| Total | 1,532.31 | — | — | 27,898.29 | 29,430.60 | 32,173.27 |
| Current assets | ||||||
| B3040 : The Bridge Current | 581.61 | 9,320.47 | — | — | 9,902.08 | 4,108.22 |
| Account | ||||||
| B3041 : The Bridge Cash | — | 317.49 | — | — | 317.49 | 67.02 |
| C3011 : Children & Youth Worker | (161.06) | 41.13 | 10,232.56 | — | 10,112.63 | 13,533.70 |
| Fund | ||||||
| D3050 : Redevelopment Fund | 5,351.14 | — | 2,398.19 | — | 7,749.33 | 7,449.13 |
| F3060 : Fabric CBF Deposit | — | — | 929.27 | — | 929.27 | 925.40 |
| G3010 : General Current Account | 36,105.75 | 2,699.36 | 52,722.49 | — | 91,527.60 | 55,902.69 |
| G3010 : General Current Account | — | — | — | — | — | 40,000.00 |
| G3011 : General CBF Deposit | 12,829.36 | — | 51.95 | — | 12,881.31 | 12,826.84 |
| G3014 : General Cash Imprest | 81.50 | — | — | — | 81.50 | 81.50 |
| G3016 : Parish Weekend | (0.84) | — | — | — | (0.84) | (0.84) |
| G3016 : Parish Weekend | — | 34.84 | — | — | 34.84 | 34.84 |
| H3020 : Hall Current Account | 6,520.42 | 19,650.31 | — | — | 26,170.73 | 25,974.43 |
| Z05 : Accounts Receivable | 3,980.48 | 42.50 | 2,441.69 | — | 6,464.67 | 10,363.89 |
| Total | 65,288.36 | 32,106.10 | 68,776.15 | — | 166,170.61 | 171,266.82 |
| Liabilities | ||||||
| ZZZ11 : Loan | — | — | 60,000.00 | — | 60,000.00 | 70,000.00 |
| Total | — | — | 60,000.00 | — | 60,000.00 | 70,000.00 |
| Net total assets | 66,820.67 | 32,106.10 | 8,776.15 | 27,898.29 | 135,601.21 | 133,440.09 |
Holy Trinity Frome, Financial Report 2020
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Fund movement by type
| Fund and type | Fund balances | Incoming | Outgoing | Transfers | Gains and | Journal | Fund balances |
|---|---|---|---|---|---|---|---|
| brought forward | Resources |
Resources | Losses |
Entries | carried forward | ||
| Unrestricted | |||||||
| General - General fund | 77,807 | 127,314 | 137,972 | (329) | — | — | 66,820 |
Sub-totals |
77,807 | 127,314 | 137,972 | (329) | — | — | 66,820 |
| Designated | |||||||
| COVID-19 - Fin Assistance | — | 7,313 | 4,500 | — | — | — | 2,813 |
| to self empl | |||||||
| DEBTCOUN - Debt | 40,000 | 475 | 5,829 | (34,645) | — | — | — |
| Counselling | |||||||
| Nurse - Parish Nurse | 26,745 | 2,482 | 13,484 | — | — | — | 15,742 |
| Weekend - Parish | 34 | — | — | — | — | — | 34 |
| Weekend away | |||||||
| YAM - Young Adult | — | 6,000 | — | — | — | — | 6,000 |
| Ministry | |||||||
| Hall - Church Hall | 2,660 | 4,483 | 10,923 | — | — | — | (3,780) |
| Revenue Fund | |||||||
| Bridge - The Bridge | 4,454 | 15,225 | 9,476 | 329 | — | — | 10,532 |
| Toddlers - Toddlers | 963 | 879 | 1,080 | — | — | — | 763 |
| Fund | |||||||
| Rob&sue - Rob & Sue | — | — | — | — | — | — | — |
| Fund | |||||||
| Sub-totals | 74,857 | 36,859 | 45,294 | (34,316) | — | — | 32,106 |
| Restricted | |||||||
| DEBTCOUN - Debt | — | 250 | 1,754 | 34,645 | — | — | 33,140 |
| Counselling | |||||||
| Fabric - Fabric Fund | (6,971) | 682 | 834 | — | — | — | (7,124) |
| Redevelop - | (59,884) | 12,700 | 699 | — | — | — | (47,883) |
| Redevelopment Fund | |||||||
| C&youth - Children & | 21,416 | 38,025 | 28,798 | — | — | — | 30,643 |
| Youth Worker Fund | |||||||
| Sub-totals | (45,439) | 51,657 | 32,087 | 34,645 | — | — | 8,776 |
| Endowment | |||||||
| Coif - Investments | 26,214 | — | — | — | 1,684 | — | 27,898 |
| Sub-totals | 26,214 | — | — | — | 1,684 | — | 27,898 |
| Totals | 133,440 | 215,831 | 215,354 | — | 1,684 | — | 135,601 |
Holy Trinity Frome, Financial Report 2020
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Analysis of income and expenditure
| Total | ||||||
|---|---|---|---|---|---|---|
| Unrestricted | Designated | Restricted | Endowment | This year Last year | ||
| Incoming resources | ||||||
| Incoming resources from generated funds | ||||||
| D0030 - Change | 9,918 | — | 207 | — | 10,125 | 27,524 |
| D0031 - Donations | 21,368 | 13,240 | 7,157 | — | 41,766 | 30,635 |
| D0032 - Grants & Legacies | — | — | — | — | — | — |
| D0040 - Sundry | 204 | 297 | 16 | — | 518 | 5 |
| D0041 - Events | — | — | — | — | — | 2,803 |
| D0042 - Fabric | — | — | — | — | — | — |
| D0043 - Books | 89 | — | — | — | 89 | 113 |
| D0044 - Toddlers | — | 879 | — | — | 879 | 3,063 |
| P0010 - Standing Orders | 68,313 | 3,980 | 27,525 | — | 99,818 | 97,103 |
| P0011 - Envelopes | 5,403 | — | — | — | 5,403 | 9,978 |
| P0020 - Inland Revenue Refund | 16,104 | 897 | 4,628 | — | 21,630 | 25,548 |
| P0021 - Vat: Listed places of Worship | — | — | — | — | — | — |
| Scheme | ||||||
| B0060 - Photocopying | 115 | — | — | — | 115 | 37 |
| B0061 - Windows | — | — | — | — | — | — |
| B0062 - Catering | 798 | — | — | — | 798 | 3,650 |
| B0063 - Sales not used | — | — | — | — | — | — |
| B0064 - Sales not used 2 | — | — | — | — | — | — |
| B0065 - Sales not used 3 | — | — | — | — | — | — |
| B0066 - sales not used 4 | — | — | — | — | — | — |
| B0067 - Rent | 650 | 866 | — | — | 1,516 | 5,149 |
| B0068 - Bridge Sales | — | 2,490 | — | — | 2,490 | 6,201 |
| H0070 - Hall Hire | — | 4,206 | — | — | 4,206 | 12,977 |
| C0050 - Current Interest | 248 | — | 3 | — | 252 | 615 |
| I0051 - 1/2T Int | 126 | — | — | — | 126 | 124 |
| I0052 - 3T Int | — | — | 678 | — | 678 | 664 |
| Incoming resources from | 123,342 | 26,859 | 40,215 | — | 190,417 | 226,197 |
| generated funds Totals | ||||||
| Incoming resources from charitable activities | ||||||
| F0080 - Fees | 951 | — | — | — | 951 | 3,173 |
| Incoming resources from | 951 | — | — | — | 951 | 3,173 |
| charitable activities Totals | ||||||
| Other incoming resources | ||||||
| D0033 - Redev Fabric Congregational | — | — | — | — | — | — |
| Loan | ||||||
| P0023 - HMRS Job Ret Sch COVID-19 19 | 3,021 | 10,000 | 11,441 | — | 24,463 | — |
| Other incoming resources Totals | 3,021 | 10,000 | 11,441 | — | 24,463 | — |
| Incoming resources Grand | 127,314 | 36,859 | 51,657 | — | 215,831 | 229,370 |
| totals |
Holy Trinity Frome, Financial Report 2020
Page 8
| Resources used Costs of generating funds A1011 - Fund Raising Expenses INT - Interest Paid B1062 - Bridge Purchases B1063 - Purchase not used B1064 - Purchases not used 2 B1065 - Purchases not used 3 B1066 - Purchases not used 4 Costs of generating funds Totals Charitable activities A0010 - Preliminaries B1067 - Rent B1068 - Rates & water Rates C1010 - Church Overseas C1011 - Relief & Development C1020 - Home Missions C1021 - Secular Charities D1050 - Parish Share E1040 - Outreach E1041 - Discipleship F1030 - Depreciation 01 H1060 - Cleaner R1090 - Insurance R1091 - Cleaning R1092 - Administrator R1093 - Maintenance R1094 - Stationery R1095 - Telephone R1096 - Equipment R1097 - Sundries R1098 - Petty Cash R1099 - Catering S1080 - Music S1081 - Heat & Light S1082 - Books S1083 - Services S1084 - Events S1085 - Clergy S1086 - Bank Charges Y1001 - Fabric Y1070 - Wages Y1071 - Expenses Z99999 - Depreciation Charitable activities Totals Other resources used A1012 - Architects Fees A1013 - Co-ordinator Fees A1014 - Design costs A1015 - Building and Construction Costs A1016 - Furnishings and equipment Other resources used Totals Resources used Grand totals |
Total Unrestricted Designated Restricted Endowment This year Last year |
|
|---|---|---|
— — — — — — — — 699 — 699 965 — 661 — — 661 1,721 — — — — — — — — — — — — — — — — — — — — — — — — |
||
| — 661 699 — 1,360 2,687 — — — — — — 180 5,133 — — 5,313 5,880 194 383 — — 578 926 5,625 — — — 5,625 9,269 — — — — — 2,255 1,800 205 — — 2,005 8,699 — — — — — — 99,834 — — — 99,834 91,721 3,384 5,535 464 — 9,383 181 — — — — — — — — — — — — 1,899 2,063 — — 3,962 6,227 1,031 738 — — 1,770 1,773 — 162 — — 162 297 10,927 — — — 10,927 10,397 2,397 3,558 — — 5,956 2,444 429 — — — 429 2,075 639 300 — — 940 832 — 847 — — 847 — 2,846 1,312 — — 4,159 4,800 — 100 — — 100 200 — — — — — 386 — — — — — 756 3,553 2,369 — — 5,922 7,227 — — — — — 280 428 — — — 428 859 — — — — — 458 — — — — — 1,955 327 — 15 — 342 422 — — 834 — 834 — 572 15,937 29,774 — 46,284 39,181 1,630 1,827 300 — 3,757 1,064 269 4,156 — — 4,426 2,139 |
||
| 137,972 44,632 31,388 — 213,994 202,715 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — |
||
| — — — — — — |
||
| 137,972 45,294 32,087 — 215,354 205,402 |
Holy Trinity Frome, Financial Report 2020
Page 9
Notes to the financial statements
For the year ended 31 December 2020
ACCOUNTING POLICIES
The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the SORP 2015 SOFA.
The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.
Funds
Endowment funds are funds, the capital of which must be maintained; only income arising from investment of the endowment may be used either as restricted or unrestricted funds depending upon the purpose for which the endowment was established.
Restricted funds represent (a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest, and (b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. The PCC does not usually invest separately for each fund. Where there is no separate investment, interest is apportioned to individual funds on an average balance basis.
Unrestricted funds are general funds which can be used for PCC ordinary purposes.
Incoming resources
Planned giving, collections and donations are recognized when received. Tax refunds are recognized when the incoming resource to which they relate is received. Grants and legacies are accounted for when the PCC is legally entitled to the amounts due. Dividends are accounted for when receivable, interest is accrued. All other income is recognised when it is receivable. All incoming resources are accounted for gross.
Resources expended
Grants and donations are accounted for when paid over or when awarded, if that award creates a binding or constructive obligation on the PCC. The diocesan parish share is accounted for when due. Amounts received specifically for mission are dealt with as restricted funds. All other expenditure is generally recognized when it is incurred and is accounted for gross.
Fixed assets
Consecrated and benefice property is not included in the accounts in accordance with s.96(2) (a) of the Charities Act 1993. Movable church furnishings held by the vicar and churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the church’s inventory, which can be inspected (at any reasonable time). For anything acquired prior to 2004 there is insufficient cost information available and therefore such assets are not valued in the financial statements. Furthermore all matters pertaining to the Redevelopment Works are not valued in the financial statements and are not considered as assets to be depreciated or replaced.
Equipment used within the church premises is depreciated on a reducing balance basis, at 15% for furniture and fixtures, and 25% for office equipment. Individual items of £100 or less are written off when the asset is acquired, and assets that are considered to have exceed a reasonable life expectancy are written off at that time.
Investments are valued at market value 31 December 2020
Holy Trinity Frome, Financial Report 2020
Page 10
2 CHARITABLE DONATIONS
| 2 CHARITABLE DONATIONS FEBA – B&M Adams C&N Moreton Christian aid REAP Africa Bath One Good Friday Pageant C & Y Fund Wycliffe FACT Grant to support training in Pioneer Ministry Others Hardship Fund Church/Bridge Neighbourhood Chaplains --- Frome Food Bank Bitola, Macedonia, Church twinning DEC Cyclone Idai appeal Friends of Somerset Churches Bridge Teas 3 FIXED ASSET (a) Tangible Actual / deemed cost at 1st Jan Disposal Additions at cost At 31st December Depreciation at 1st Jan Withdrawn on disposal Charge for the year Depreciation at 31st December (b) Investments Market value at 1st January Purchases Disposals Revaluation At 31st December |
2020 £ 2500 2500 300 --- 300 2800 1000 210 --- 148 1033 300 --- 1000 --- 50 -- |
2019 £ 2500 2000 438 500 -- -- 1000 693 2500 1220 1544 200 475 2830 2255 50 180 |
|---|---|---|
| 12141 38407 --- --- 38407 32448 4426 36874 26214 1684 27898 |
18385 38907 500 --- |
|
| 38407 | ||
| 30809 1639 |
||
| 32448 | ||
| 22234 3979 |
||
| 26214 |
:
Holy Trinity Frome, Financial Report 2020
Page 11
Independent examlners, report to the members of the Paro¢hlal Church Coun¢ll of Holy Trlnlty Church, Frome I report on the accounts of the church for the year ended 31 December 2020, which are set out on pages Z to 11 Respective responsibilities of trnstees 8nd examiner The members of the PCC, as the charity's trustees. are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is needed. It is my responsibility to: examine the accounts (under section 145 of the 2011 Act)., to follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5) of the 2011 Act),. and to state whether particular matters have come to my attention. Basis of independent examiners, report My examlnation was carried out in accordance with the General Dlrections given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts. and the seeking of explanations from you as trustees conceming any such matters. The prOdureS undertaken do not provide all the evidence that would be required in an audit and, consequently, I do not express an audit opinion on the view given by the accounts. Independent examiners, statement In connection with my examination, no matter has corne to my attention: {1) which glves me reasonable cause to believe that, in any material respect, the requirements: to keep accounting records in accordance with s130 of the 2011 to prepare accounts which accord with the accountlng records and to comply with the accounting requirements of the 2011 Act have not been met; or (2) to which. in my opinion, attention should be drawn in order to enable a proper understsnding of the accounts to be reached. Nlgel Harris BA CTA ATT Accountsnt & Chartered Tax Adviser Sweet Burton Cooper House Lower Charlton Estate Shepton Mallet Somerset BA4 5QE 31 March 2021