2021-12-31-accounts - Parochial Church Council Of The Ecclesiastical Parish Of St Mary-Le-Bow, Cheapside

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St MaryleBow Church

Annual Accounts 2021

ST MARY-LE-BOW REFERENCE AND ADMINISTRATIVE INFORMATION AS AT 31 DECEMBER 2021

Charity Number

1130098

Objects and Public Benefit

The purpose of the church is promoting in the parish the whole mission of the Church. The PCC members have taken full recognition of the requirements of section 17 of the Charities Act 2011 in regard to public benefit.

Governing Document

The Church is governed by the Parochial Church Councils (Powers) Measure 1956 (as amended) and the Church Representation Rules (contained in Schedule 3 to the Synodical Government Measure 1969 (as amended)).

Members of the Parochial Church Council (PCC)

Rector & Chair:	The Revd George R. Bush_(ex officio)_
Churchwardens:	Giles French (ex officio)
	David Saunders (ex officio)
	The churchwardens were elected on 27 May 2021 and
	serve for one year.
Clerk of Works:	Antoine West (until 2024_)_
Representatives to the City Deanery Synod:	Dan Hedley (until 2023)
	Dan Ryan (until 2023)
Elected Members:	Margaret Burtt (until 2022) -PCC Secretary &
	Electoral Roll Officer
	Michael Wainwright (until 2022)
	Aaron Burchell (until 2023)
	William Dempster (until 2023)
	Dan Hedley (until 2023)
	Dan Ryan (until 2023)
	James Sanders (until 2023) –Hon. Treasurer
	Vicky Snow (until 2023)
	Oliver Boundy (until 2024)
	Alan Hovell (until 2024)
Parish Officers
Verger:	Richard Swann (until January 2021)
Parish Secretary & Pastoral Assistant:	Matthew Power (until July 2021)
Operations Officer:	Danniella Downs (from June 2021)

ST MARY-LE-BOW REFERENCE AND ADMINISTRATIVE INFORMATION (continued) AS AT 31 DECEMBER 2021

Office Address

Cheapside London EC2V 6AU

Bankers

HSBC City of London Branch 60 Queen Victoria Street London EC4N 4TR

Independent Examiner

Nik Fisher Simia Wall Devonshire House 582 Honeypot Lane Middlesex HA7 1JS

Quinquennial Inspecting Architect

Alex Sherratt Matthew Lloyd Architects LLP 1B The Hangar Perseverance Works 38 Kingsland Road London E2 8DD

Surveyor

Bob Wilson Edwards Wilson The Gallery St Margaret Pattens Rood Lane London EC3H 1HS

ST MARY-LE-BOW PCC REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Responsibilities of the Parochial Church Council (PCC) in relation the Financial Statements

The PCC is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

The Church Accounting Regulations 2006 and the law applicable to charities in England and Wales require the Members of the PCC to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the PCC and of the incoming resources and application of resources of the PCC for that period. In preparing these financial statements, the PCC are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are responsible and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern unless it is inappropriate to presume that the charity will continue in business.

The Members are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the PCC and enable them to ensure that the financial statements comply with The Church Accounting Regulations 2006 and S.145 of the Charities Act 2011. 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.

Risks

The Trustees have reviewed the risks of St Mary-le-Bow during the year and believe that existing controls and procedures are best suited to meet its objectives.

24[th] March 2022

Approved by the PCC on .......................................

and signed on its behalf by:

James Sanders Hon. Treasurer

INDEPENDENT EXAMINER’S REPORT TO THE PCC OF ST MARY-LE-BOW

I report on the accounts of St Mary-le-Bow for the year ended 31 December 2021, which comprise the Statement of Financial Activities, Balance Sheet and related notes.

Respective Responsibilities of the PCC and Examiner

As members of the PCC you 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;
follow the procedures laid down in the general directions given by the Charity Commission under Section 145(5)(b) of the 2011 Act; and
state whether particular matters have come to my attention.

Basis of Independent Examiner’s Report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the PCC and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees 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:

1) which gives me reasonable cause to believe that in any material respect the requirements
to keep accounting records in accordance with Section 130 of the 2011 Act; and
• to prepare accounts which accord with the accounting records and 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 understanding of the accounts to be reached.

ST MARY-LE-BOW STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR-ENDED 31 DECEMBER 2021

Note Unrestricted Funds (£) Restricted Funds (£) Endowment Funds (£) INCOME Voluntary income 1 73,790 31,000 - Investment income 1 5,591 40,730 - Other income 1 77,143 65,748 - TOTAL INCOME 156,524 137,478 - TOTAL EXPENDITURE 2 (85,427) (127,193) - NET INCOME BEFORE REVALUATIONS 71,097 10,285 - Gains/ (losses) on investment revaluation 8 27,078 - 101,141 NET MOVEMENT IN FUNDS BEFORE EXCEPTIONAL ITEM 98,175 10,285 101,141 Transfers 11 21,787 (21,787) - Exceptional items (Tower Project) 3 87,276 - - NET MOVEMENT IN FUNDS AFTER EXCEPTIONAL ITEM 207,238 (11,502) 101,141 Total Funds as at 1 January 2021 3 290,199 26,892 756,091 Total Funds as at 31 December 2021 497,437 15,390 857,232	TOTAL 2021 (£) 104,790 46,321 142,891 294,002 (212,620) 81,382 128,219 209,601 - 87,276 296,877 1,073,182 1,370,059	TOTAL 2020 (£) 58,265 42,292 56,561 157,118 (124,400) 32,718 (146,389) (113,671) - (8,906) (122,577) 1,195,785 1,073,208

ST MARY-LE-BOW BALANCE SHEET AT 31 DECEMBER 2021

	Note	2021	2020
		£	£
Fixed Assets
Tangible assets	6	-	-
Investments	8	1,075,644	947,425
		1,075,644	947,425
Current Assets
Debtors	9	11,679	2,684
Cash at bank		287,843	125,663
		299,522	128,347
Current Liabilities
Creditors: Amounts falling due within one year	10	(5,107)	(2,590)
Net Current Assets		294,415	125,757
TOTAL FIXED ASSETS AND NET CURRENT ASSETS		1,370,059	1,073,182
Parish Funds
General funds		497,437	290,199
Restricted funds		15,390	26,892
Endowment funds		857,232	756,091
TOTAL FUNDS		1,370,059	1,073,182

24[th] March 2022 Approved by the Parochial Church Council and authorised for issue on ......................................

James Sanders Hon. Treasurer

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

ACCOUNTING POLICIES

The principal accounting policies which are adopted consistently in the preparation of the financial statements are set out below:

Basis of accounting

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the current Statement of Recommended Practice, Accounting and Reporting by Charities and applicable accounting standard FRS102.

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.

Incoming resources

Planned giving, collections and donations are recognised when received. Grants and legacies are accounted for when the PCC is legally entitled to the amounts due and they can be quantified with reasonable certainty. 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. The diocesan parish share is accounted for when due. All other expenditure is generally recognised when it is incurred and accounted for gross, and is allocated between activities on the basis of the resources used.

Movable church furnishings

Movable church furnishings held by the rector 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 2000 there is insufficient cost information available and therefore such assets are not valued in the financial statements.

Consecrated land and buildings

Consecrated land and benefice property is excluded from the financial statements under S10.2 of the Charities Act 2011.

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

ACCOUNTING POLICIES (continued)

Equipment, fixtures and fittings

Equipment used within the church premises is depreciated on a straight line basis over three years. Individual items of equipment with a purchase price of £500 or less are written off when the asset is acquired.

Investments

Investments are stated at market value at 31 December 2021. Any gains or losses arising on revaluations are transferred to the Statement of Financial Activities.

Cash is held on deposit with HSBC, Unity Trust and Metrobank to be used in church business on a continuing basis.

Fund accounting

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 the year must be carried forward as a balance of that fund. The PCC does not usually invest separately for each fund.

Unrestricted funds are general funds which can be used for PCC ordinary purposes.

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Incoming Funds	Unrestricted	Restricted	Total	Total
	funds	Funds	2021	2020
	£	£	£	£
Voluntary income
Regular congregational giving	25,843	-	25,843	26,670
Collections (open plate)	3,815	-	3,815	2,701
Grants	4,250	31,000	35,250	4,250
Donations, appeals & legacies	18,578	-	18,578	11,257
Collection boxes	4,760	-	4,760	2,499
Gift Aid and VAT recovered	16,544	-	16,544	10,888
Total voluntary income	73,790	31,000	104,790	58,265
Income from investments
Bank interest and dividends	5	-	5	25
Other investments	5,586	40,730	46,316	42,267
Total investment income	5,591	40,730	46,321	42,292
Other incoming resources
Sundry income	47,833	-	47,833	5,834
Parish fees	1,033	-	1,033	1,945
Christmas card commission	-	-	-	1,622
Voluntary church rates (unrestricted)	5,385	-	5,385	4,974
Music income	1,504	-	1,504	3,167
Licence fees	20,092	-	20,092	12,772
City Parochial Fund	1,296	-	1,296	1,296
Just Share	-	9,329	9,329	8,529
Rector’s Discretionary Fund	-	3,738	3,738	3,624
Other Restricted income	-	52,681	52,681	12,798
Total other income	77,143	65,748	142,891	56,561
Totalexcluding Tower income	156,524	137,478	294,002	157,118
Tower Project income	90,000	-	90,000	3,671
Totalincluding Tower income	246,524	137,478	384,002	160,789

Sundry Income

Sundry income of £47,833 (2020: £5,834) includes payments totalling £29,076 relating to the erection of scaffolding on the church’s grounds by two neighbouring commercial properties. It also includes a rebate of £12,960 received from HSBC relating to a twelve-year period during which HSBC had overcharged the parish for banking fees.

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Grants

Subventions received under the Job Retention Scheme were accounted for as reductions in staff cost expenditure. See Note 5 for further details.

General Grants of £4,250 (2020: £4,250) relate to amounts received from the Grocers’ Company and the Mercers’ Company. We record our gratitude to both companies for their continued support.

Restricted Grants of £31,000 (2020: £0) relate to amounts received under the DCMS Cultural Recovery Scheme (to assist with staff costs and professional fees) and from the Bernard Sunley Foundation (to assist with replacing the carillon). We record our gratitude to both funders for their generosity.

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Funds Expended	Unrestricted	Restricted	Total	Total
	funds	Funds	2021	2020
	£	£	£	£
Common Fund	48,000	-	48,000	35,052
Parish expenses	3,252	-	3,252	3,471
Major repairs	13,597	-	13,597	1,962
Repairs & renewals	317	-	317	935
Rates & water	425	-	425	459
Electricity & gas	7,440	-	7,440	6,402
Office costs	5,365	-	5,365	5,029
Music expenses	1,639	-	1,639	1,421
Sacristy	922	-	922	508
Depreciation	-	-	-	127
Legal, professional & examiner fees	4,077	-	4,077	2,707
Bank charges & interest	393	-	393	367
Just Share	-	7,913	7,913	5,643
Rector’s Discretionary Fund	-	3,264	3,264	1,522
Other restricted expenses	-	75,286	75,286	18,332
Verger & Finance Officer costs	-	20,507	20,507	16,537
Other staff costs & employer NI	-	20,223	20,223	23,926
Totalexcluding Tower expenditure	85,427	127,193	212,620	124,400
Tower Project expenditure	2,724	-	2,724	12,577
Totalincluding Tower expenditure	88,151	127,193	215,344	136,977

Verger & Finance Officer Costs

See Note 5 which explains the categorisation of these costs as restricted.

Other Staff Costs & Employer NI

See Note 5 which explains the categorisation of these costs as restricted.

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

3. Tower Project

The church was engaged between 2017 and 2021 in a project to undertake essential repairs to its tower.

Because of the size and unusual nature of the sums involved, all income and expenditure relating to the Tower Project over those years has been shown as an Exceptional Item on the Statement of Financial Activities (the Income-and-Expenditure account).

The Tower Project concluded in 2021 and the nature of the fund used to account for the project was changed from Restricted to General. To reflect that change in these accounts:

(1) The opening balance (£21,787) on the Tower fund has been transferred from Restricted Funds to General Funds – see Note 11;
(2) Net income of £87,276 realised on the Tower fund during 2021 (2020: (£8,906)) has been accounted for as an Exceptional movement on General Funds. In previous years it had been accounted for as an Exceptional movement on Restricted Funds.

4. Licence Fees

During the year licence fee payments of £20,092 (2020: £12,772) were received from the Café Below, Bow Wine Vaults, Taberna Etrusca, the Coptic Orthodox Church, the flower and shoeshine stalls, and a number of other groups.

Staff Costs	2021	2020
	£	£
Wages and salaries	27,533	26,717
Pension (Nest)	1,047	1,686
	28,580	28,403

The salary and pension costs stated here include those of the Verger (until January 2021), the Operations Officer (from June 2021), the Parish Secretary (until July 2021), the Director of Music, and the Cleaner.

The salary and pension costs stated here exclude those of the Just Share officer (whose salary is charged against a specific restricted fund) and the Finance Officer, who is paid on an invoicerendered basis.

The costs are stated net of subventions received during the year from HMRC under the Job Retention Scheme and from DCMS under the Cultural Recovery Fund. The gross salary cost of the Verger, Operations Officer, Parish Secretary, Director of Music and Cleaner totalled £36,680 in 2021 (2020: £50,720). A redundancy payment made to the Parish Secretary in July 2021 increased the gross salary cost of these members of staff to £45,045.

The subsidy received under the Job Retention Scheme for these members of staff was £7,317 (2020: £24,003). The salary element of the subsidy received from the Cultural Recovery Fund for these members of staff was £10,195 (2020: £0). This reduced the parish’s outlay to £27,533 (2020: £26,717)

Fees invoiced by the Finance Officer came to £11,400 (2020: £10,600), in relation to which a subsidy was received under the Cultural Recovery Fund of £2,250 (2020: £0).

The gross salary paid to the Just Share Coordinator of £9,500 (2020: £9,500) was subsidised by payments under the Job Retention Scheme of £1,113 (2020: £4,275) and the Cultural Recovery Scheme of £688 (2020: £0).

Change of policy regarding part-funding of the Verger’s salary from Voluntary Rate income

Voluntary rate income of £22,356 was realised in the current year (2020: £4,974). Of this, £16,971 (2020: £0) was credited to a restricted fund because certain payers stipulated that their contributions could only be applied to fabric-related expenditure.

In previous years 27.5% of the Verger’s annual salary had been charged against those restricted voluntary rate contributions. That practice was discontinued in 2021.

Sale of Silver Fund income

Income realised from the Sale of Silver Fund during the year totalled £40,763 (2020: £36,907)

As noted above, subventions against staff salaries were received during the year from the Government’s Job Retention Scheme and under the DCMS Cultural Recovery Fund. These reduced the salary costs of the Verger, Operations Officer and Finance Officer to £240, £11,117 and £9,150 respectively.

All three of the above payments, totalling £20,507, have been treated as restricted expenditure covered by the restricted income of £40,763 arising from the Sale of Silver Fund.

Income from the Sale of Silver Fund was also used to characterise the £20,223 of ‘Other Staff Costs’ as restricted expenditure.

The remaining £33 of income realised from the Sale of Silver Fund is included within the £5,586 of general income from Other Investments.

Payments to PCC Members

An immaterial portion of the expenses paid to the incumbent may have related to his services as chairman of the PCC. No other payments or expenses were paid to any other PCC member, persons connected with them or related parties.

There were 3 (2020: 4) employees at St Mary-le-Bow as at 31 December 2021.

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Tangible Fixed Assets	Equipment	Movable
	Fixtures &	Church
	Fittings	Furns	Total
	£	£	£
Cost
At 1 January 2021 and at 31 December 2021	7,452	3,016	10,468
Depreciation
At 1 January 2021	7,452	3,016	10,468
Provision for the year	0	0	0
At 31 December 2021	7,452	3,016	10,468
Net book value
At 1 January 2021	0	0	0
At 31 December 2021	0	0	0

7. Fund details

The restricted funds include 4,465 units of the Sale of Silver fund which are subjected to direction from the Court and therefore are not permitted to be withdrawn.

The endowment fund includes the balance of units on the Sale of Silver fund (50,620 units) which as outlined in Note 5 are used to fund salaries and related expenses of the Operations Officer (previously the Verger) and the Finance Officer. They may also be used on a discretionary basis for the salaries of other members of staff.

Investments – UK	2021	2020
	£	£
Market value at 1 January 2020	947,425	1,093,814
Net gain (loss) on revaluation	128,219	(146,389)
At 31 December 2020	1,075,644	947,425
Managed funds	1,075,644	947,425
Cash	-	-
	1,075,644	947,425

Historical cost of the managed funds at 31 December 2021 was £229,258 (2020: £229,258).

9.

Debtors	2021	2020
	£	£
Debtors	11,679	2,682

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10.	Amounts falling due within one year	2021	2020
		£	£
	Creditors and accrued expenses	5,107	2,590

11. Transfers

The project to repair the church tower concluded during 2021 and the nature of fund used to track income and expenditure on that project was then changed from Restricted to General. The transfer of £21,787 reflects the adjustment of the opening balance on that account.

12. Unrestricted funds

	Balance at	Incoming	Resources	Revaluation/	Balance at
	01-01-2021	Resources	Expended	Transfers	31-12-2021
	£	£	£	£	£
Unrestricted fund	290,199	243,800	(85,427)	48,865	497,437

13. Restricted funds

	Balance at	Incoming	Resources	Revaluation/	Balance at
	01-01-2021	Resources	Expended	Transfers	31-12-2021
	£	£	£	£	£
Restricted funds	26,892	137,478	(127,193)	(21,787)	15,390

The Consistory Court directed in April 2009 that the proceeds of the Sale of Silver Fund may be used to indemnify the PCC for employing persons to do the work of a verger and other functions. Since that date in no single year has the income of the fund exceeded the expenses of relevant salaries.

14. Endowment Funds:

	Balance at	Incoming	Resources	Revaluation/	Balance at
	01-01-2021	Resources	Expended	Transfers	31-12-2021
	£	£	£	£	£
Sale of Silver Fund	756,091	-	-	101,141	857,232

ST MARY-LE-BOW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Commitments under operating leases

At 31 December 2021 the Parochial Church Council had an annual
commitment under operating lease in respect of a photocopier as follows:
	2021	2020
	£	£
Expiry date: 2 – 5 years	756	756

16. Funds held as Custodian Trustee

At the year-end the church held an amount of US$ 23,928 on behalf of the Trinity Church in New York for the purpose of contributing towards the cost of conferences and meetings with similar church leaders.