Registered Charity No: 1129917
The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Report and Financial Statements for the year ended 31 December 2020
The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Contents
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Report of the Parochial Church Council | 2 - 5 |
| Independent Examiners' report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the accounts | 9 – 16 |
The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Legal and administrative information for the year ended 31 December 2020
Reference and Administrative Details of the Charity
Address 1 Abingdon Road Cumnor Oxford OX2 9QN Independent examiners Critchleys Audit LLP Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP Bankers National Westminster Bank plc. 121 High Street Oxford OX1 4DD
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Report of the Parochial Church Council for the year ended 31 December 2020
The members of The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor (‘the PCC’ or ‘the Parochial Church Council’) submit their annual report and financial statements for the year ended 31 December 2020. The financial statements comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Structure, governance and management
St Michael’s, Cumnor is a body corporate under the PCC Powers Measure 1956 and Church Representation Rules 2006. On 1 June 2009, the PCC completed the process of registration with the Charity Commission (Registration Number 1129917) to comply with the new requirements introduced by the Charities Act 2006.
The charity is administered by the members of the PCC. However, between major parochial meetings various working teams operating under the overall guidance of the Chairman conduct the day-to-day business of the parish.
The members of the PCC hold their position either ex officio or by election. Elected members of the PCC are appointed at the Annual Parochial Church meeting by a vote of those parishioners whose names are registered on the churches' electoral rolls.
The following people have served on the PCC in 2020:
Charity Trustees Jonathan Widdess Islwyn Evans Malcolm Taylor Neil Grady Eve Lockett David Henderson-Slater Jane Vlitos Christopher Scruby Jane Impey Roger Long Helen Azer Jean Horsman Valerie Grady Karen Adamson Vivien Payne Kate Elliott Jan Harris Elected October 2020 Sheila Millard Resigned October 2020 Angela Evans Resigned October 2020 Jean Carroll Resigned April 2020 Roland Fuggle Resigned April 2020
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Report of the Parochial Church Council
for the year ended 31 December 2020 (continued)
Objectives and activities:
The sole object of the PCC is the furtherance of God’s work in this place. The PCC is responsible for the day to day administration of the assets and the church of St Michael’s, Cumnor.
The Trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission. When planning our activities for 2020 the PCC considered the Charity Commission’s guidance on public benefit and been mindful of the need to reach as many people as possible throughout the parish through a range of services and other activities, where there is teaching about Jesus, worship and prayer.
Achievements, Performance and Financial Review
The attached accounts are for the year ended 31 December 2020.
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The COVID pandemic had a huge financial impact on the parish accounts. In January 2020, the PCC approved an operating budget for 2020 which projected an annual surplus of £18,600 to start to rebuild unrestricted fund reserves. With the churches closed for the majority of the year, income from collections dried up, and with significant reductions in income from weddings, rentals and fundraising events, the projected surplus would have turned into a deficit of over £10,000 were it not for the legacy mentioned below.
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The church was blessed with a major legacy of over £200,000 from the closure of the Olive Herbert Trust Fund which contributed to a large rise in unrestricted funds through the year.
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St Andrew’s Church continues with its efforts to connect with the local Dean Court Community. The existing building is nearing the end of its viable life and an exciting project is underway for a new replacement building. Detailed plans have been submitted to the VOWH planning committee and subject to planning permission a tender process will be initiated with the target to start construction in 2[nd] half of 2021. Fundraising has been very successful and by end 2020 over 90% of the anticipated project cost had either been donated or pledged.
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The significant investment in a new AV system in St Michael’s church proved a huge blessing which ensured that live streaming of Sunday services could be offered to the congregation when the churches were closed.
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By necessity, many of the church’s ministries were curtailed through the year but creative use of IT systems and processes maintained good online contact for pastoral support, Alpha discipleship courses and Home group activity
3
The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Report of the Parochial Church Council
for the year ended 31 December 2020 (continued)
Reserves Policy
It is the policy of this church to hold in unrestricted funds, reserves equivalent to 3 months general running costs excluding Parish Share. This would total £16,000 including approximately £4,000 to cover 3 months of salary payments to our employee. The agreed budget for 2020 projected a surplus which would have rebuilt reserves back to this level before the impact of the pandemic took effect. The legacy received in the year enabled the church to hold significant reserves at the end of the year.
Future Plans:
Outreach to the many new homes being built across the Parish, growth of our Ministry to young families and engaging with the under 40’s to transition church to the next generation, continue to be the three key long- term priorities for the church. However, the disruption caused by the pandemic has put on hold any further development of this vision until there is clarity on what “future church” will look like post COVID.
The project to replace the existing building at St Andrew’s Church will be an exciting challenge to the PCC and our congregations. Subject to local authority planning approval, it is hoped that construction will start in the second half of 2021, and be completed by year end.
4
The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Report of the Parochial Church Council
for the year ended 31 December 2020 (continued)
Parochial Church Council’s responsibilities
The members of the Parochial Church Council are responsible for preparing the Report of the Parochial Church Council and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the members of the Parochial Church Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Parochial Church Council and of the incoming resources and application of resources of the Parochial Church Council for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP (FRS102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The members of the Parochial Church Council are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Parochial Church Council and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and any trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the PCC on ............................ and signed on its behalf by:
................................................................................ Malcolm Taylor – Hon Treasurer
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Independent Examiner’s Report to The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
I report to the members of The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor on my examination of the accounts of the Parochial Church Council for the year ended 31 December 2020, which are set out on pages 7 to 16.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011(‘the Act’).
I report in respect of my examination of the Trustees’ accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commissioner under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I 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:
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1 accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2 the accounts do not accord with those records; or
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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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Katherine Wilkes FCA BSc (Hons) Critchleys Audit LLP Beaver House, 23-38 Hythe Bridge Street, Oxford, OX1 2EP
Date:
6
The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Statement of Financial Activities for the year ended 31 December 2020
| Unrestricted Restricted Notes Funds Funds £ £ Income and endowments Donations and legacies 9 336,033 14,790 Activities for generating funds 9 11,293 164 Income from investments 9 905 383 Income from charitable activities 9 200 165 Other income 9 2,128 - Total income and endowments 350,559 15,502 Expenditure Charitable activities: Missionary and Charitable giving 5 9,016 - Ministry and Church running costs 5 156,495 16,364 Total expenditure 165,511 26,597 Net income/(expenditure) 185,048 (11,095) Net movement in funds 185,048 (11,095) Balance brought forward at 1 January 2020 1,833 368,020 Balance carried forward at 31 December 2020 186,881 356,925 |
2020 Total Funds £ 350,823 11,457 1,288 365 2,128 366,061 9,016 172,859 192,108 173,953 173,953 369,853 543,806 |
2019 Total Funds £ 445,754 21,081 2,572 7,157 23,437 500,001 10,779 197,744 208,523 291,478 291,478 78,375 369,853 |
|---|---|---|
All of the above results are derived from continuing activities. All gains and losses recognised in the period are included above.
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
(Registered charity no: 1129917)
Balance sheet as at 31 December 2020
| Notes Fixed assets Tangible assets 6 Current assets Debtors 7 Cash at bank and in hand Creditors:amounts falling due within one year 8 Net current assets Total assets less current liabilities Net Assets Funds Unrestricted funds 10 Restricted funds 10 Total funds |
2020 £ £ 41,093 4,521 504,016 508,537 (5,824) 502,713 543,925 543,806 186,881 356,925 543,806 |
2019 £ 5,436 360,718 366,154 (11,432) |
£ 15,131 354,722 369,853 369,853 1,833 368,020 369,853 |
|---|---|---|---|
The financial statements were approved and authorised for issue by the PCC on ........................... 2020 and signed on their behalf by:
………………………………………………….
Malcolm Taylor – Hon Treasurer
The notes on pages 9 to 16 form an integral part of these financial statements
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Notes to the financial statements for the year ended 31 December 2020
1. ACCOUNTING POLICIES
1.1. Accounting convention
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities,” the Statement of Recommended Practice for charities applying FRS 102 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019. The PCC constitutes a public benefit entity as defined by FRS 102.
Going concern
The accounts are prepared on a going concern basis as the trustees are confident that sufficient funds will be available to enable operations to continue at a sustainable level for a period of at least 12 months from the approval of the accounts by the Trustees.
1.2. Charity status
The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor is a body corporate under the PCC Powers Measure 1956 and Church Representation Rules 2006. On 1 June 2009, the PCC completed the process of registration with the Charity Commission (Registration Number 1129917).
1.3. Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Parochial Church Council in furtherance of its general objectives and which have not been designated for any other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Parochial Church Council for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income and gains are allocated to the appropriate fund.
1.4. Income
All income is included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. Rental income from the letting of church premises is recognised when the rental is due. Dividends and interest are accounted for when receivable and are received gross.
No amounts are included in the financial statements for services donated by volunteers.
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Notes to the financial statements
for the year ended 31 December 2020 (continued)
1. ACCOUNTING POLICIES (CONTINUED)
1.5. Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
Grants and donations are mainly made for the propagation of the Gospel and to support other church-related organisations both at home and abroad.
The Diocesan Parish Share is accounted for when payable.
1.6. Tangible fixed assets and depreciation
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Plant and equipment - 10 years straight line Electrical equipment - 3 years straight line
Land and Buildings are not subject to depreciation as the members of PCC consider that the current valuation of land and buildings exceeds their carrying value on the financial statements.
Consecrated and beneficed property is excluded from the accounts in line with Section 10(2) of the Charities Act 2011. All expenditure, whether maintenance or improvement, incurred on consecrated or benefice property is immediately written off in the Statement of Financial Activities.
Movable church furnishings are inalienable assets which require a faculty for disposal. No cost or value is available for such items acquired before 2001 without incurring professional costs which the PCC considers would outweigh the benefit of providing such information. Items acquired after 1 January 2001 are capitalised at cost and depreciated over their effective useful lives.
1.7 Employee benefits
The charity operates a defined contribution plan for the benefits of its employees. Contributions are expensed as they become payable.
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Notes to the financial statements
for the year ended 31 December 2020 (continued)
2. AIM AND USE OF FUNDS
The Charity utilises the following restricted funds:
St Mary’s Building Fund (restricted)
Monies received specifically for the upkeep of St Mary’s Church.
MUGA Fixed Assets Fund (restricted)
Balance on this fund reflects the net book value of the assets relating to the multi-use games area.
St Andrew’s Development Fund (restricted)
Monies received specifically for the future replacement building for St Andrew's Church.
St Michael’s Improvements Fund (restricted)
Monies received specifically for the project to improve the access to, and facilities for, St Michael's Church.
St Michael’s Restoration Fund (restricted)
Monies received specifically for the upkeep of St Michael’s Church.
Vicar’s Discretionary Fund (restricted)
Monies received for use at the discretion of the vicar.
Youth Worker Fund (restricted)
Donations and grants received to support the Cumnor PCC youth worker.
Memories Café Fund (restricted)
Donations received at fortnightly meetings for early dementia sufferers and their carers.
Poulton Fund (restricted)
A donation given specifically for the furtherance of religious activity in the Parish of Cumnor.
Olive Herbert Fund (designated)
A donation from the distribution of funds following the closure of the Olive Herbert Charitable Trust. The PCC have proposed that this fund should be used to finance capital projects which further the mission of the church in the parish.
Details of movements in restricted funds are provided in note 9 to the financial statements
3. RELATED PARTY TRANSACTIONS
No members of the Parochial Church Council received or waived any emoluments during the period (2019: £nil).
Ordained members of the clergy, in receipt of a stipend, do so directly from the Church of England.
£1,166 expenses were reimbursed to trustees during the year (2019: Nil).
Donations made by Trustees in the year totalled £16,583 (2019: £15,784).
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Notes to the financial statements for the year ended 31 December 2020 (continued)
| 4. STAFF COSTS Wages & Salaries Employer’s National Insurance Employer’s Pension Contributions No employees received remuneration above £60,000. The average number of staff employed during the year was 1 (2019: 2) 5. COSTS OF CHARITABLE ACTIVITY Missionary and Charitable giving Grants and donations Ministry and Church running costs Parish share of Diocesan expenses Church running expenses Administration costs Church maintenance Sundry expenses Depreciation Legal and professional fees Staff costs (analysed in note 4) Governance costs |
2020 £ 16,191 994 809 17,994 2020 £ 9,016 70,406 21,782 7,622 24,072 10,246 26,764 2,766 17,994 1,440 192,108 |
2019 £ 34,654 3,051 1,134 38,839 2019 £ 10,779 70,230 17,871 8,059 25,014 26,207 9,188 1,136 38,839 1,200 208,523 |
|---|---|---|
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Notes to the financial statements
for the year ended 31 December 2020 (continued)
6. TANGIBLE FIXED ASSETS
| . TANGIBLE FIXED ASSETS |
||
|---|---|---|
| Land & Buildings Play Area Equipment AV Equipment £ £ £ Cost or Valuation At 1 January 2020 2,567 91,880 - Additions - - 52,726 At 31 December 2020 2,567 91,880 52,726 Depreciation At 1 January 2020 - 79,316 - Charge for year - 9,188 17,576 At 31 December 2020 - 88,504 17,576 Net book values At 31 December 2020 2,567 3,376 35,150 At 31 December 2019 2,567 12,564 - |
Total £ 94,447 52,726 147,173 |
Total £ 94,447 52,726 |
| 79,316 26,764 106,080 |
79,316 26,764 |
|
| 41,093 | ||
| 15,131 |
7. DEBTORS
| . DEBTORS |
||||
|---|---|---|---|---|
| 2020 | 2020 Total | 2019 Total | ||
| Unrestricted | Restricted | All Funds | All Funds | |
| £ | £ | £ | £ | |
| Gift Aid 2,390 |
1,228 | 3,618 | 4,679 | |
| Other debtors 903 |
- | 903 | 757 | |
| 3,293 | 1,228 | 4,521 | 5,436 |
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Notes to the financial statements
for the year ended 31 December 2020 (continued)
8. CREDITORS: amounts falling due within one year
| 2020 | 2020 Total | 2019 Total | |||
|---|---|---|---|---|---|
| Unrestricted | Restricted | All Funds | All Funds | ||
| £ | £ | £ | £ | ||
| Independent examination fee | 1,320 | - | 1,320 | 1,200 | |
| Other creditors | 4,504 | - | 4,504 | 10,232 | |
| 5,824 | - | 5,824 | 11,432 |
9. ANALYSIS AND RECONCILIATION OF MOVEMENTS ON FUNDS
Total unrestricted funds grew through the year principally due to a legacy of £213k from the closure of the Olive Herbert Trust Fund. The PCC have decided to designate this income for capital projects. On December 31st 2020 the general fund (unrestricted) had a balance of £187k.
The impact of the COVID pandemic caused a significant reduction in collections, rental income and proceeds from fund raising events. There is uncertainty on when we might recover these income streams, but in the short term the PCC have agreed a balanced budget for 2021, and are developing a plan to restore reserves now that the route out of lockdown has been announced.
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The Parochial Church Council of the Ecclesiastical Parish of St Michael’s Cumnor
Notes to the financial statements for the year ended 31 December 2020 (continued)
9. (CONTINUED) ANALYSIS AND RECONCILIATION OF MOVEMENTS ON FUNDS
| General Unrestricted St Mary’s Building Restricted St Andrew’s FA Fund (MUGA) St Andrew’s Dev Fund Restricted St Michael’s Restoration Restricted St Michael’s Improveme nt Restricted Vicar’s Discretionary fund Youth Worker s Memories Café £ £ £ £ £ £ £ £ £ Income 350,559 - - 11,942 - 1,076 - 2,198 286 Expenditure (165,511) - (9,188) (1,700) (2,793) (11,222) (347) (281) - Surplus/(deficit) 185,048 - (9,188) 10,242 (2,793) (10,146) (347) 1,917 286 Transfers - - - 208,934 - - - - - Net movement in funds 185,048 - (9,188) 219,176 (2,793) (10,146) (347) 1,917 286 Funds brought forward 1,833 - 12,564 127,571 4,290 10,713 1,750 724 408 Funds carried forward 186,881 - 3,376 346,747 1,497 567 1,403 2,641 694 Split Fixed assets 2,567 - 51,106 - - - - - - Net current assets 184,314 - (47,730) 346,747 1,497 567 1,403 2,641 694 |
Poulton Fund £ - (1,066) (1,066) (208,934) (210,000) 210,000 0 - 0 |
Total 2020 £ 366,061 (192,108) 173,953 - 173,953 369,853 543,806 2,567 541,239 |
Total 2019 £ 500,001 (208,523) 291,478 - 291,478 78,375 369,853 15,131 354,722 |
|---|---|---|---|
15
- 186,881 3,376 346,747 1,497
567 1,403 2,641 694 0 543,806 369,853
9 . (CONTINUED) ANALYSIS AND RECONCILIATION OF MOVEMENTS ON FUNDS – 2019 COMPARATIVE
| General Unrestricted St Mary’s Building Restricted St Andrew’s FA Fund (MUGA) St Andrew’s Dev Fund Restricted St Michael’s Restoration Restricted St Michael’s Improveme nt Restricted Vicar’s Discretionary fund Youth Workers Memories Café Poulton Fund £ £ £ £ £ £ £ £ £ Income 173,320 - - 62,329 - 50,837 - 3,515 - 210,000 Expenditure (169,050) (1,050) (9,188) - (15,133) (1,118) - (12,58) (396) - Surplus/(deficit) 4,270 (1,050) (9,188) - (15,133) 49,719 - (9,073) (396) 291,478 Transfers 14,326 74 - - (20,000) - 5,600 - - - Net movement in funds 18,596 (976) (9,188) 62,329 (15,133) 29,719 - (3,473) (396) 210,000 Funds brought forward (16,763) 976 21,752 65,242 19,423 (19,006) 1,750 4,197 804 - Funds carried forward 1,833 - 12,564 127,571 4,290 10,713 1,750 724 408 210,000 Split Fixed assets 2,567 - 12,564 - - - - - - - Net current assets (734) - - 127,571 4,290 10,713 1,750 724 408 210,000 1,833 - 12,564 127,571 4,290 10,713 1,750 724 408 210,000 |
Total 2019 Total 2018 £ £ 500,001 317,639 (208,523) (359,830) 210,000 - - 291,478 (42,191) 78,375 120,566 369,853 78,375 15,131 24,139 354,722 54,056 369,853 78,375 |
Total 2019 Total 2018 £ £ 500,001 317,639 (208,523) (359,830) 210,000 - - 291,478 (42,191) 78,375 120,566 369,853 78,375 15,131 24,139 354,722 54,056 369,853 78,375 |
|---|---|---|
| - (42,191) |
||
| 120,566 78,375 24,139 54,056 78,375 |
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