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2020-12-31-accounts

Charity Registration Number: 1130001

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2020

INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

PCC Information Page 1
Council Members Report Pages 2 to 4
Independent Examiners Report Page 5
Statement of Financial Activities Page 6
Balance Sheet Page 7
Notes to the Financial Statements Pages 8 to 12

Page 1

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

PCC INFORMATION

Principal Address

The Vicarage 120 Church Lane East Aldershot Hampshire GU11 3SS

Parochial Church Council Members

Members of the PCC are either ex officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. As from April 2008 the membership structure was reorganised to form a PCC with each church having representation as freely elected by the members with no defined number of representatives from each church up to a maximum of 12 elected members.

During the year the following served as members of the PCC:
Vicar: The Reverend Alwyn Pereira
Churchwardens : Barbara Fletcher (left October 2020)
Richard Fawn (Secretary)
Michael Clist (Treasurer) (started October 2020)
Representatives on the Deanery Synod: Clem Beevis
Diane Stejskal (left October 2020)
Alan Hilliar
Parish Clerk Val Renton
Representatives: Helen Walter (left October 2020)
Angela Horton
Gilly Maher (left October 2020)
Rosemary Balchin (left October 2020)
Michael Clist (Treasurer)
Ian Powditch
Michelle Chapman (left October 2020)
Claire Allan
Alexandra Davidson (Secretary) (started October 2020)
Linda Humphreys (started October 2020)
Bankers:
Central Board of Finance NatWest Bank Plc.
of the Church of England 30 Wellington Street
St Alphage House Aldershot
2 Fore Street Hampshire
London EC2Y 5AQ GU11 1YJ
Independent Examiner Wise & Co.
Chartered Accountants &
Statutory Auditors
Wey Court West
Union Road
Farnham
Surrey GU9 7PT

Page 2

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

COUNCIL MEMBERS REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2020

1. Legal Status

The PCC is formed under the Church of England Assembly (Powers) Act 1919 and Parochial Church Council (Powers) Measure 1921 and currently regulated by Church Representation Rules Schedule 3 of the Synodical Government Measure 1969. The PCC is registered with the Charity Commission, charity number 1130001.

2. Objects of the PCC

The PCC is responsible for co‐operating with the Incumbent in promoting, in the ecclesiastical parish, the whole mission of the Church, pastoral, evangelistic, social, and ecumenical. It also has maintenance responsibilities Measure 1969.

3. Committees

Standing Committee: This is the only Committee required by law. It has power to transact the business of the PCC between its meetings of that Body, subject to any directions given by the Council. Other Committees are formed as and when required.

4. Achievements and Performance

The PCC met 5 times during the year.

As of 31st December 2020, there were 126 (2019 ‐ 119) on the Parish Electoral Roll.

The average Sunday attendances at the churches was 85 (2019 ‐ 106) in non‐Covid affected weeks. The Trustees have paid due regard to the requirements for public benefit and believe that the Charity provides opportunities for all.

5. Financial Review

This has been a difficult year for the Parish due to the Covid 19 crisis. Whilst giving by standing order has increased slightly the weekly envelopes and collections are down because of nearly four months of closure and a reduction in attendance due to many parishioners shielding. To off‐set this loss of income, expenses have been well controlled.

The PCC was able to meet its contractual liability to Guildford Diocese (GDBF) and has paid the Parish Share of £77,587 less an allowance given by GDBF for the Covid Pandemic of £6,977. Earlier years (2015‐2018) payments of £32,535 (2015‐2017) 0f £29,993 (2018) have still not been finalised and a creditor of £61,696 is included in the Balance Sheet to cover this.

6. Plans for Future Periods

In 2020, we faced unprecedented disruption, driven both by the direct impact of the COVID‐ 19 pandemic and the acceleration of pre‐existing social trends like ‘changes to Sunday worship, church attendance and membership’. In response, we adapted adhering to strict Covid 19 hygiene protocols, when in the buildings, and to using video communication technology like zoom and YouTube when forced to lockdown. This new form of online worship has led to us being able to reach out to many residents of Aldershot and the surrounding areas that we would not necessarily reach. The experience has highlighted to us

Page 3

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

COUNCIL MEMBERS REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2020

that if we are to thrive on the new Missional opportunities presented, we will need to rapidly evolve and evaluate our current management processes, and our stewardship of our buildings/assets and resources. These plans are already being discussed as we look forward to re‐opening the church and continuing our outreach to the community of Aldershot. Our Vicar Alwyn will lay out the foundation of these plans in his report to the AGM in May.

Future expenditure will be prioritised in line with these aspirations and in how best to achieve our Mission. Special thanks must go out to every member of our congregation who showed incredible resilience at a time when many suffered losses of loved ones, a huge capacity to change and immense faithfulness.

7. Fabric Improvements

The following repairs and improvements are being considered at St Michael’s. The re‐ordering of the church including the essential improvements to the heating system. Following the removal of the old organ the area is being considered as part of the reordering plans.

The majority of the works identified in the quinquennial review of 2018 have now been completed during the financial year.

Due to health and safety reasons and the very poor state of repair at the Church of Ascension the Parochial Church Council agreed, after consultation with the Archdeacon of Surrey, to commence the Church Closure Process through the Church Commissioners. The building will remain closed and only essential heating and repairs to protect the building will be carried out, whilst the future of the existing site is considered.

8. Investments

The only Restricted Funds’ Investments are a legacy from the Giles Estate, in the form of an investment of £78.87, the interest being solely for use by the Sunday school, and the Chancel Repair Fund. Unrestricted Funds are general funds which can be used by the PCC for general purposes, some of which have been designated by the PCC.

9. Reserves Policy

It is PCC policy to endeavour to maintain a balance on unrestricted reserve to meet six month’s unrestricted payments. The current balance overall on unrestricted funds is positive and the PCC will be reviewing the split of funds between general and designated over the next year to be able to take the general fund out of deficit. The PCC will maintain tight controls over income and costs.

10. Risks

The major risks to which the PCC is exposed, as identified by PCC members, have been reviewed and systems have been established to mitigate those risks. The greatest risk is the Parish Share due from previous years, which occurred during the inter‐regnum, but as mentioned above this has not been finalised and we are now hoping that this may be written off.

Page 4

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

COUNCIL MEMBERS REPORT FOR THE YEAR ENDED 31[ST] DECEMBER 2020

11. General

The financial statements comply with current statutory requirements, the requirements of the Statement of Recommended Practice and the Charity's governing document.

12. Members Appointments and New Members Proceedings

Members of the Parochial Church Council are elected each year at the Annual Parochial Church Meeting. Each member is normally elected for a period of three years, on a rotative basis, to ensure continuity over a three‐year cycle. New Members are appointed for shorter periods to cover vacancies when they occur. All new members must personally satisfy and be proposed and seconded in line with the Church Representation Rules, to be able to serve on the Council. Ex‐officio members of the PCC include the Deanery Synod Representatives, the Churchwardens, and the Parish Clergy.

13. Council Members Responsibilities

The Council Members are required to prepare, for each financial year, financial statements which give a true and fair view of the state of affairs of the PCC and of the results for the period. In preparing the financial statement the council members are required to:

The Council Members are responsible for ensuring proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the PCC. They are also responsible for safeguarding the assets of the PCC and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed Dated The Reverend Alwyn Pereira

Page 5

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

REPORT OF THE INDEPENDENT EXAMINERS TO THE COUNCIL MEMBERS OF FOR THE YEAR ENDED 31ST DECEMBER 2020

Independent examiner's report to the PCC of St Michael, Aldershot

I report on the accounts of the PCC for the year ended 31 December 2020, which are set out on pages 6 to 12.

This report is made solely to the PCC's members, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. My work has been undertaken so that I might state to the PCC's members those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the PCC and the PCC's members as a body, for my work or for this report.

Respective responsibilities of trustees and examiner

The members of the PCC are responsible for the preparation of the accounts. The members 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:

Basis of independent examiner’s report

My examination was carried out in accordance with the General Directions given by the Charity Commissioner. 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 members concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

S G Morgan FCA Wise & Co Chartered Accountants & Statutory Auditors Wey Court West Union Road Farnham Surrey GU9 7PT Dated :

Page 6

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020

Notes
INCOME FROM:
Donations and Legacies
2
Charitable Activities
3
Other Trading Activities
4
Investment Income
5
Other Income
6
TOTAL INCOME
EXPENDITURE ON:
Expenditure on Raising Funds
7
Expenditure on Charitable Activities
8
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) BEFORE
OTHER RECOGNISED GAINS OR LOSSES
Unrealised Gains/(Losses) on Investments
NET INCOME/(EXPENDITURE)
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
FUNDS AT 1ST JANUARY 2020
FUNDS AT 31ST DECEMBER 2020		 2020
2020
2020
2019
Restricted
Unrestricted
Total
Total
Funds
Funds
Funds
Funds
£
£
£
£
12,000
68,255
80,255
141,556
‐
18,428
18,428
18,409
‐
5,607
5,607
7,337
‐
661
661
1,359
‐
745
745
406
12,000
93,696
105,696
169,067
‐
9,418
9,418
18,890
‐
125,784
125,784
134,195
‐
135,202
135,202
153,085
12,000
(41,506)
(29,506)
15,982
‐
‐
‐
29
12,000
(41,506)
(29,506)
16,011
‐
‐
‐
‐
12,000
(41,506)
(29,506)
16,011
27,298
142,707
170,005
153,994
39,298
101,201
140,499
170,005

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

The notes on pages 8 to 12 form part of these accounts.

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

Page 7

BALANCE SHEET FOR THE YEAR ENDED 31ST DECEMBER 2020

Notes
Fixed Assets
Tangible fixed assets
15
Investments
16
Total Fixed Assets
Current Assets
Debtors
17
Short term investments
Cash at Bank and in Hand
Total Current Assets
Current Liabilities
Parish Share
Other Creditors
Accruals
18
Net Current Assets
Net Assets
21
Restricted Funds
Giles Legacy
Balance as at 1st January 2020
Net Movement in Funds for the Year
Balance as at 31st December 2020
20
Specific Donations
Balance as at 1st January 2020
Net Movement in Funds for the Year
Balance as at 31st December 2020
20
Chancel Fund
Balance as at 1st January 2020
Net Movement in Funds for the Year
Balance as at 31st December 2020
20
Unrestricted Funds
Designated Funds
Special Appeals
Balance as at 1st January 2020
Net Movement in Funds for the Year
Balance as at 31st December 2020
Capital Reserve
Other unrestricted Funds
General Fund
Balance as at 1st January 2020
Net Movement in Funds for the Year
Balance as at 31st December 2020
Total Unrestricted Funds
Total Funds
The financial statements were approved by the memb		 £
953
180,337
28,026
2		 £
‐
431
020		 £
3,016
179,676
52,418
2		 £
‐
431
019
431
140,068		 431
169,574
209,316
67,243
305
1,700		 235,110
61,696
2,140
1,700
69,248
79
‐		 65,536
79
‐
140,499 170,005
79
34,507
4,712
22,507
12,000
4,712
‐
7,613
‐
39,298
7,613
ers and signed on the

Signed: Signed: The Reverend Alwyn Pereira Michael Clist (Treasurer) Dated: Dated:

The notes on pages 8 to 12 form part of these accounts.

Page 8

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

1 Accounting Policies

a) Basis of Accounting

The financial statements have been prepared under the historical cost convention of accounting except for the valuation of investment assets, which are shown at market value at the balance sheet date.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards (FRS 102) and the Charities Statement of Recommended Practice (SORP) 2015 The PCC constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in GBP to the nearest £1.

The principal accounting policies and estimations techniques are as follows b) Funds General funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC. These include funds designated for a particular purpose by the PCC Details of the nature and purpose of restricted funds are shown in note 20 to the accounts c) Income

All income is included in the Statement of Financial Activities (SOFA) when the PCC is legally entitled to them as income or capital respectively, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy. Donations, Legacies and Similar Resources i) Collections and Donations are included in the financial statements when received by or on behalf of the PCC ii) Planned giving receivable under covenant is included in the financial statements only when received by the PCC iii) Income tax recoverable on covenanted and gift aid donations are accrued to November each year and claimed every four months. iv) Legacy income is accounted for when receivable. v) Grant income is accounted for when receivable. Income from investments, including interest received, is accounted for when due Funds raised by the fete, bazaars and similar events are accounted for gross. Rental income from letting the church premises is recognised when the rental is due d) Expenditure Costs of generating funds and governance costs are accounted for when payable and include irrecoverable VAT e) Fixed Assets Consecrated and benefice property is not included in these financial statements. f) Investments Investments are valued at their closing market value at the Balance Sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities. g) Taxation As a qualifying charity, the PCC is not liable to UK taxation. g) Cash flow As a non‐large charity, the PCC is permitted to exclude a cashflow note. h) Operating leases ‐ the PCC as lessee Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Page 9

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

2 Income from Donations and Legacies

Donations

Donations ‐ giving by bankers order Income tax recoverable via Gift Aid Donations ‐ giving by envelope Collections at all services Donations and appeals

TOTAL TOTAL
Unrestricted funds Restricted funds 2020 2019
£ £ £ £
30,338 ‐ 30,338 24,348
15,077 ‐ 15,077 25,286
12,267 ‐ 12,267 21,056
3,406 ‐ 3,406 10,830
285 12,000 12,285 54,498
61,373 12,000 73,373 136,018

In 2019 there were no restricted donations.

Grants received

Parish Clerk Endowment Fund Churchyard Furlough government grant

In 2019 there were no restricted grants.

Legacies and Trusts

Legacies In 2019 there were no restricted legacies.

Total Income from Donations and Legacies

TOTAL TOTAL
Unrestricted funds Restricted funds 2020 2019
£ £ £ £
3,000 ‐ 3,000 3,000
‐ ‐ ‐ 1,538
3,882 ‐ 3,882 ‐
6,882 ‐ 6,882 4,538
TOTAL TOTAL
Unrestricted funds Restricted funds 2020 2019
£ £ £ £
‐ ‐ ‐ 1,000
68,255 12,000 80,255 141,556

Magazines Church lettings (inc. Concerts) Property rental (Ascension House) Church Hall lettings

In 2019 there were no restricted lettings.

4 Income from Other Trading Activities

Fetes, bazaars,etc Fees

In 2019 there was no restricted income.

Investment Income In 2019 there was restricted income of £2.

TOTAL TOTAL
Unrestricted funds Restricted funds 2020 2019
£ £ £ £
26 ‐ 26 488
177 ‐ 177 901
16,800 ‐ 16,800 610
1,425 ‐ 1,425 16,410
18,428 ‐ 18,428 18,409
TOTAL TOTAL
Unrestricted funds Restricted funds 2020 2019
£ £ £ £
153 ‐ 153 2,458
5,454 ‐ 5,454 4,879
5,607 ‐ 5,607 7,337
TOTAL TOTAL
Unrestricted funds Restricted funds 2020 2019
£ £ £ £
661 ‐ 661 1,359

Page 10

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

6 Other Income

Other Income
Printing
Sundry income
In 2019 there was no restricted income.		 Unrestricted funds
Restricted funds
TOTAL
2020
TOTAL
2019
£
£
£
£
88
‐
88
145
657
‐
657
261
745
‐
745
406

7 Expenditure on raising funds

Property Costs
Hall Costs
In 2019 there was no restricted expenditure.		 Unrestricted funds
Restricted funds
TOTAL
2020
TOTAL
2019
£
£
£
£
6,413
‐
6,413
9,378
3,005
‐
3,005
9,512
9,418
‐
9,418
18,890
Missionary and charitable giving (see Note 9)
Ministry costs (see Note 10)
Sunday school/junior church
Refurbishment and repairs (see Note 12)
Church running expenses
Organist
Memorial Wall
Governance Costs (see Note 13)		 Unrestricted funds
Restricted funds
TOTAL
2020
TOTAL
2019
£
£
£
£
370
‐
370
1,099
70,989
‐
70,989
90,204
722
‐
722
1,036
19,121
‐
19,121
6,929
11,093
‐
11,093
14,740
197
‐
197
895
‐
‐
‐
3,733
23,292
‐
23,292
15,559
125,784
‐
125,784
134,195

Restricted expenditure in 2019 totalled £5,577

9 Missionary and Charitable Giving

Ticehurst
Christian Aid
Children's society
Jubilee Church
Salvation Army		 Unrestricted funds
Restricted funds
TOTAL
2020
TOTAL
2019
£
£
£
£
‐
‐
‐
224
‐
‐
‐
48
‐
‐
‐
27
‐
‐
‐
800
370
‐
370
‐
370
‐
370
1,099

In 2019 there was no restricted expenditure on missionary and charitable giving

osts
Diocesan Parish Share
Curates Salary and Oncosts
Other ministry costs		 Unrestricted funds
Restricted funds
TOTAL
2020
TOTAL
2019
£
£
£
£
70,570
‐
70,570
75,695
417
‐
417
7,225
2
‐
2
7,284
70,989
‐
70,989
90,204

In 2019 there were restricted fund expenditure amounting to £1,822

11 PCC Representatives' Remuneration

During the year, no remuneration was paid to the PCC Representatives (£nil ‐ 2019)

Page 11

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

12 Refurbishment and repairs (Improvements)

Church maintenance
Churchyard		 Unrestricted funds
Restricted funds
TOTAL
2020
TOTAL
2019
£
£
£
£
17,190
‐
17,190
5,504
1,931
‐
1,931
1,425
19,121
‐
19,121
6,929

In 2019 there were no restricted refurbishment and repair costs.

13 Governance Costs

Administrator
Printing and stationery
Accountancy
IT costs
Other fees
Independent examiner's fees		 Unrestricted funds
Restricted funds
TOTAL
2020
TOTAL
2019
£
£
£
£
11,425
‐
11,425
7,641
1,977
‐
1,977
4,788
970
‐
970
‐
4,669
‐
4,669
‐
2,551
‐
2,551
1,430
1,700
‐
1,700
1,700
23,292
‐
23,292
15,559

In 2019 there were no restricted governance costs.

14 Staff costs

s
Wages and salaries
Social security costs		 TOTAL
2020
TOTAL
2019
£
£
11,425
13,298
‐
‐
11,425
13,298

The average number of staff in the year was 3 (2019: 3); the full time equivalent number of staff was 1 (2019: 1)

There were no employees receiving remuneration in excess of £60,000 per annum

Staff costs are unrestricted.

15 Tangible Fixed Assets

Freehold
Property Total
£ £
Cost at 1 January 2020 and 31 December 2020 ‐ ‐

The freehold property at Ayling Hill, Aldershot was valued at £375,000 at 31 December 2006 by Bridges Estate Agents Limited. The house which is normally used to house the curate is owned by St Michael’s and the Ascension PCC, but is in Trust with the Guildford Diocese. Whist awaiting a Church Commissioners visit to decide on the future of the church permission was given, on a temporary basis, to rent the property.

16 Fixed Asset Investments

Market Value
As at 1st January 2020
Additions
Disposals
Change in Market Value
As at 31st December 2020		 2020
£
431
‐
‐
431
‐
431

Historic cost information relating to the Fixed Asset Investments is not available at the date of agreement of the Financial Statements

A summary of investments held by fund is as follows:

3.5% War Loan
Lloyds TSB shares		 Market Value
2020
£
79
352
431

Page 12

PARISH OF ST MICHAEL THE ARCHANGEL, ALDERSHOT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

17 Debtors

Income Tax recoverable
Fees		 2020
2019
£
£
953
2,307
‐
709
953
3,016

The income tax recoverable has been estimated based on gift aid donations received in the year where the tax has not yet been claimed.

18 Accruals

Independent Examiner's Fees 2020
2019
£
£
1,700
1,700
1,700
1,700

19 Commitments under operating leases

At 31 December 2020 the PCC had future minimum lease payments under non‐cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2020
2019
£
£
1,440
1,440
360
1,800
1,800
3,240

20 Restricted Funds

21 Analysis of net assets between funds

Fund balances as at
31 December 2020 are
represented by:
Investments
Current assets
Current liabilities		 Restricted
Designated
General
Total
Total
Funds
Funds
Funds
2020
2019
£
£
£
£
£
79
‐
352
431
431
39,219
132,613
37,484
209,316
235,110
‐
‐
(69,248)
(69,248)
(65,536)
39,298
132,613
(31,412)
140,499
170,005