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2021-12-31-accounts

Annual Report

and

Financial Statements

of the

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

for the year ended 31 December 2021

Team Rector:

The Reverend Dr David Munchin The Rectory 2 Ottway Walk Welwyn Herts AL6 9AS

Bank:

Barclays Bank plc The Welwyn Group 12/12A The Howard Centre Welwyn Garden City Herts AL8 6ER

Independent examiner:

Chris Burton BA, FCA Chartered Accountant 13 Warren Way Welwyn Herts AL1 0DQ

Registered Charity no. 1130415

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Annual Report for the year ended 31 December 2021

Aim and purposes

The PCC of the parish has the responsibility of co-operating with the incumbent, the Rev’d Dr David Munchin, in promoting in the parish the whole mission of the Church, including its pastoral, evangelistic, social and ecumenical vision. It also has the maintenance responsibilities for St Mary the Virgin, Welwyn, St Michael and All Angels, Woolmer Green, St Michael’s House and Church House.

Objectives and Activities

The PCC is committed to enabling as many people as possible to worship in our two churches and to become part of our parish community. The PCC maintains an overview of worship throughout the parish and makes suggestions on how our services can involve the many groups that live within our parish. Our services and worship put faith into practice through prayer, scripture, music and sacrament.

When planning our activities for the year, the incumbent and the PCC considered the Commission’s guidance on public benefit and, in particular, the specific guidance for charities on the advancement of religion. Primarily, we try to enable ordinary people to live out their faith as part of our parish community through:

To facilitate this work, it is important that we maintain the fabric of our two churches, St Michael’s House and Church House.

Response to the Global Pandemic

The COVID19 pandemic and its associated restrictions have had a major impact on parish and church life. From late March until 6 July 2020, the church was closed to communal worship, though we live-streamed services throughout that period, and continue to do so. From 6 July until 27 December 2020, we were able to keep up our normal rota of services, though with safety restrictions in place and much-reduced congregations.

During all this time and continuing into 2021, services have been live-streamed on the internet so those shielding or otherwise preferring to stay at home have been, in a limited way, able to join in with the worship. Due to a sharp ‘second wave’ of infections, we again (this time voluntarily and not because of government legislation) closed our churches to communal worship from 27[th] December 2020. The churches were again open to communal worship from 1[st] March 2021. We have operated a hybrid model, offering both in person and online services since then, until the present day. During that time restrictions on singing, mask wearing and social distancing have gradually been lifted. However just before Christmas 2021 the emergence of the omicron variant again placed more restrictions on places of worship. Since February 2022 there have been no legal restrictions affecting our worship or activities, though many people have chosen to continue with various precautions such as mask wearing and social distancing. We have encouraged people to remain vigilant on a voluntary but not mandatory basis. People are gradually returning to in person services and other church activities. We still do not share the common cup at communion services, or physically share the peace. I anticipate reviewing this after Easter 2022. Some activities having migrated online, have found it more convenient to stay there, at least for the time being.

Funerals, baptisms and weddings are returning to ‘normal’ levels after a difficult two years.

As well as services, every other aspect of church life has been impacted. Where possible, we have kept up activities online, but very often there has been no option but to suspend those activities that depend on meeting in person.

Plans for the future

Although there was a Mission Action Plan in place prior to COVID19, this has been superseded by the need to recover from the effects of the pandemic. The impact on the life of the whole nation, its economic repercussions and its effect on our social and working lives cannot be overestimated. The church, like everybody, will have to

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Annual Report for the year ended 31 December 2021 (continued)

Plans for the future (continued)

think hard about how it rebuilds and renews once the restrictions are lifted. It should be said that we are in a better position than most – many institutions and businesses, sadly, have not survived -but the challenges are still serious.

Achievements and Performance

The restrictions of COVID19 severely curtailed our church activities, though some of these were made available online. Services and nearly all other activities were stopped or moved online in the first two months of 2021. However for the rest of the year, all services and activities have been able to be in person (or on line or hybrid, as desired) though with varying restrictions on for instance singing, and mandatory mask wearing, over the year.

Worship and Prayer

All are welcome to attend our regular services. At present, there are 256 parishioners on the Church Electoral Roll. The effects of COVID19 mean that it is not possible to calculate in any helpful way average Sunday attendance.

The PCC is keen to offer a range of services during the week that our community finds both beneficial and spiritually fulfilling. Quiet spoken Eucharist services are held on weekdays and on Sunday mornings. Sung Eucharist services are held every Sunday morning and on major festivals. Evensong services are held in St Mary’s on the second, fourth and fifth Sundays of each month, with this generally being choral on the second Sunday. Services especially aimed at families and young children are held on a regular basis, usually in the more informal setting of Church House, such as the bi-monthly 40-minute pram service. Monthly services are held at various care homes and day centres for the elderly throughout the parish.

Special preparation classes are run for those who wish to get married in the churches and for those wishing to have their children baptised. Baptisms take place during normal Sunday morning services, enabling families to be welcomed by the church community. This is usually on the third Sunday of the month.

We have a notable choral tradition, which enhances worship. In 2021 we said farewell to our Director of Music, Linden Innes-Hopkins as she retired and moved to Northumberland. We welcomed in October Pavlos Triniataris as our newly appointed Director of Music

Pastoral Care

There is a trained team within the congregation to provide Baptism preparation and a team to welcome newcomers and visitors. Pastoral care is largely provided by the clergy, and informally by members of the congregation on an ad hoc basis.

A Memorial service is held annually in November at St Mary’s for those who have been bereaved during past years. This is followed by refreshments and a time for fellowship and support.

Mission and Outreach

The PCC has a policy of making donations to local, national and international charities, mostly through the fundraising work of church members, equivalent to at least 15% of the annual voluntary donations received by St Mary’s. This target was not met this year, as fundraising events and special collections during services were restricted due to COVID19. The PCC decided to top up donations out of church funds to charities that would normally have benefitted from our donations, amounting to £5,440.

Each year the parish produces 10 issues of the Welwyn Magazine, which contains both church and local information. It is sold widely throughout the parish.

The Welwyn Community Café, set up in November 2009 in conjunction with the Welwyn Parish Action Plan Group and in line with the Welwyn Parish Plan, has continued to be successful. The café runs most Tuesday mornings, from 10am until noon, in Church House. Church House also provides a venue for other community groups, such as a twice-weekly sewing and knitting group, a bridge club and a monthly community lunch.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Annual Report for the year ended 31 December 2021 (continued)

Achievements and Performance (continued)

There are many opportunities for Bible Study and other forms of Christian education; the website and the weekly pew bulletin give extensive details of these.

We usually take a key role as participant and venue in Welwyn Week, which unfortunately had to be cancelled in 2020 and 2021. In addition, the parish runs a walking group, two book groups, a theatre group, and Men’s Breakfasts events, which are open to church and non-church members. These activities took place when restrictions permitted, and some moved to online platforms during lockdown periods. The church normally produces a pantomime each year, but this was not possible in 2021. Further details of activities and up to date information can be found on our marvellous website.

Financial Review

Overall the charity recorded a deficit of £3,678 (2020: surplus of £35,102) which was not unexpected bearing in mind the challenges and uncertainties in the second year of the COVID19 pandemic. There was considerable capital expenditure during the year - the installation of the replacement boiler and overhaul of the ground source heat pumps at St. Mary’s was completed (£51,136) and the livestreaming system was installed (£5,574). A new kitchen and carpets were purchased for St. Michael’s House (£6,927). This contributed to the fall in the cash balances (bank and deposit accounts) of £67,403 to £172,675 ( 2020: £240,078 ).

Income

Total income was £234,161 (2020: £238,590) . Amounts received from donations and legacies was £27,856 lower than in 2020, largely because of reduced legacy income of £11,000 (2020: £37,000) . The livestreaming appeal raised £13,125 to purchase equipment to enable services in the Welwyn team to be viewed by those not able to attend in person. Income from charitable activities and trading activities was £52,997 (£25,573 higher than in 2020) thanks to church groups being able to resume activities, at least for part of the year, and income of £15,220 from letting St. Michael’s House whilst there is a curate vacancy.

Income from regular monthly giving by standing order or direct debit dropped by approximately £3,000 although donor numbers increased from 86 to 92. St. Mary’s Church joined the Parish Giving Scheme, a direct debit scheme which is of great benefit as the diocese covers the cost of processing the donations and claiming gift aid. Regular monthly giving is especially valuable, providing a predictable monthly income and helping to budget for future expenditure. Next year we hope to introduce more donors to the scheme and plan to register St. Michael’s Church.

A Giving Station for card donations was installed in St. Mary’s Church in November and has been very well used. It offers the congregation an alternative to donating cash during services, and an easy way for people to donate who visit the church at other times.

We are very grateful for the generosity of the church community - for donations of money, time and talents – all of which enable the running costs of the buildings to be met and the church’s mission in the two communities of Welwyn and Woolmer Green to continue.

Expenditure

Total expenditure was £238,551 (2020: £203,807) . The costs associated with church services, and running and maintaining the buildings and churchyards, were £11,289 higher than in 2020, which was expected as the churches were open and in use more than was possible the previous year. £20,132 was spent on the major refurbishment of St. Michael’s House in order for it to be rented out whilst no curate is in post. There was a small reduction of £1,823 in St. Mary’s diocesan parish share in 2021. In 2022 the fire alarm system in St. Mary’s Church will be upgraded at an approximate cost of £15,000. The quinquennial inspection will take place in the Autumn and there may be some large expenditure as a result of this.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Annual Report for the year ended 31 December 2021 (continued)

Reserves

The charity’s total funds dropped by £3,678 to £904,120 ( 2020: £907,798 ). Restricted and endowment funds fell to £10,439 ( 2020: £51,431 ). Designated unrestricted funds set aside for emergency expenditure and capital for church groups and activities fell to £64,505 ( 2020: £79,774 ). General unrestricted funds increased to £204,176 ( 2020: £151,593 ) because of the fixed assets acquired during the year from previously restricted funds.

Unrestricted cash reserves (i.e. undesignated money freely available to spend on the charity’s purposes) were £104,600 ( 2020: £115,157 ). The PCC’s reserves policy is to hold sufficient unrestricted cash reserves to cover at least four months' operating expenses, which they believe will provide stability for the charity and it is satisfied with its current position.

Risk Assessment Policy

The PCC is actively involved in the day-to-day running of the charity. Its members have assessed the major risks to which the charity is exposed and have satisfied themselves that systems have been established, or that other appropriate measures have been taken, to mitigate those risks, insofar as is reasonably practicable, but it is recognised that systems cannot give absolute assurance that risks have been eliminated. Training of trustees and volunteers has been provided to mitigate the safeguarding risks associated with young people.

The PCC is aware of its duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016 (duty to have regard to House of Bishops guidance on safeguarding children and vulnerable adults). It has appointed Safeguarding Officers for each church and approved the House of Bishops’ Model Policies for safeguarding of children and vulnerable adults (this is done annually and the policies are displayed in the churches, with additional information). In addition at each meeting a report is given on any safeguarding incidents. We are pleased to report that no safeguarding incidents occurred in 2021.

Matters associated with financial losses arising from a declining congregation have been identified as a risk too. Because regular monthly expenditure exceeds regular monthly giving income, there is a reliance on one-off donations, legacies and appeals to raise sufficient funds to break even.

The PCC continues to keep these risks under review, including consideration of any other major risks that might be present from time to time.

Volunteers

The PCC appreciates and thanks all the volunteers, at both St Mary’s and St Michael’s, who give their time and effort so willingly.

Structure, governance and management

Members of the PCC are either ex-officio or elected at the Annual Parochial Church Meeting in accordance with the Church Representation Rules. The PCC members are responsible for making decisions on all matters of general concern and importance to the parish, including deciding on how the funds of the PCC are to be spent. Given its wide responsibilities, the PCC operates through a number of action groups and committees, most of which meet on a regular basis.

Standing Committee:

This is the only committee required by law. It has power to transact the business of the PCC between its meetings, subject to any directions given by the Council.

Fabric Action Group:

Deals with the maintenance, repair and development of the church buildings, St Michael’s House and Church House.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Annual Report for the year ended 31 December 2021 (continued)

Structure, governance and management (continued)

Giving Action Group:

Deals with the allocation of donations to chosen charities, both at home and abroad, and is responsible for encouraging parishioners to commit to regular giving, both of time and money, to ensure the well-being of the church and its functions.

Church House Management Action Group:

Responsible for the management, maintenance and usage of Church House.

St Michael’s Meeting:

Acts like an Action Group and deals with all matters relevant to St Michael’s Church.

As the PCC has ultimate responsibility for a wide range of matters affecting the parish, it is important that the PCC adopts appropriate training procedures. Training courses arranged by the diocese are attended by a PCC representative who reports back to the PCC as a body, with any relevant reading matter being distributed.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Annual Report for the year ended 31 December 2021 (continued)

Administrative information

The PCC is a body corporate (PCC Powers Measure 1956, Church Representation Rules 2006). The Charities Act 2006 removed ‘excepted status’ from charities with incomes over £100,000 and therefore, during 2010, the PCC was required to register as a charity with the Charity Commission; its registration number is 1130415. The PCC’s administrative office is located at St Mary’s Church, Church Street, Welwyn, AL6 9LX.

During 2021, the following served as members of the PCC:

Incumbent: Rev'd Dr David Munchin Chairman Clergy: Vacancy Readers: Mr Colin Hull (Deanery Synod Rep.) Mrs Usha Hull Mr John Burnapp Church Wardens: Mr Stuart Westley Mrs Diane Jenkin Mrs Susan Keach (at St Michael’s) Deanery Synod Reps.: Mrs Vernonne Allan Mrs Shoena Eggington (at St Michael’s) Elected Members: Mrs Jacqueline Davis Mrs Joan Shelley Mr Geoffrey Cummings Mrs Gina Beck Mr Stuart Jenkin Mrs Margaret Varco Mrs Gloria Jean Perriman Resigned April 2021 Mr Emmanuel Emmanuel-Odiachi (at St. Michael’s) Resigned April 2021 Mr Donald Bell Resigned April 2021 Secretary: Mrs Louise Hughes

Signed on behalf of the PCC by

………………………………………….. The Rev'd Dr David Munchin (Chairman)

……………………….. Date

Independent Examiner’s Report to the members/trustees of the Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

I report to the charity’s trustees on my examination of the accounts of the PCC for the year ended 31 December 2021.

Responsibilities and basis of report

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the Trust's accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner’s statement

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

  1. accounting records were not kept in respect of the Trust, as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

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

  4. the accounts have not been prepared in accordance with the Charities SORP (FRS 102).

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.

Chris Burton BA, FCA Chartered Accountant 13 Warren Way Welwyn Herts AL6 0DQ

………………………… Date

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Statement of Financial Activities

For the year ended 31 December 2021

Unrestricted Restricted Endowment 2021 2020
Funds Funds Funds TOTAL TOTAL
Note £ £ £ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies 2a 166,772 13,125 - 179,897 207,753
Charitable activities 2b 19,463 - - 19,463 8,046
Other trading activities 2c 33,534 - - 33,534 19,378
Investments 2d 42 - 144 186 539
Government grant 2e 1,081 - 1,081 2,874
TOTAL 220,892 13,125 144 234,161 238,590
EXPENDITURE ON:
Raising funds 3a - - - - 29
Charitable activities 3b 237,929 16 144 238,089 203,778
Other Costs - loss on disposal of fixed assets 3c 462 - - 462 -
TOTAL 238,391 16 144 238,551 203,807
NET INCOME (17,499) 13,109 - (4,390) 34,783.
NET GAINS ON INVESTMENTS - - 712 712 319
TRANSFERS BETWEEN FUNDS 54,813 (54,813) - - -
NET MOVEMENT IN FUNDS
 37,314 (41,704) 712 (3,678) 35,102
BALANCES BROUGHT FORWARD
AT 1 JANUARY 2021 856,367 46,483 4,948 907,798 872,696
BALANCES CARRIED FORWARD
AT 31 DECEMBER 2021 893,681 4,779 5,660 904,120 907,798

The notes on the pages following the balance sheet form part of these accounts

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Balance Sheet at 31 December 2021

Note
FIXED ASSETS
Tangible fixed assets
6
Fixed asset investments
7
CURRENT ASSETS
Stock
Debtors
8
Short term deposits
Cash at bank and in hand
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
9
NET CURRENT ASSETS
TOTAL NET ASSETS
FUNDS OF THE CHARITY
Expendable endowment funds
11c
Restricted funds
11c
Unrestricted funds
11c
Revaluation reserve
11c

TOTAL CHARITY FUNDS		 2021
2020
£
£
£
£
719,182
663,412
5,660
4,948
724,842
668,360
1,207
1,336
18,614
10,260
29,001
29,000
143,674
211,078
192,496
251,674
(13,218)
(12,236)
179,278
239,438
904,120
907,798
5,660
4,948
4,779
46,483
268,681
231,367
625,000
625,000
904,120
907,798

Approved by the Parochial Church Council on ……………………………. and signed on its behalf by:

…………………………………………… The Rev’d Dr David Munchin (Chairman)

The notes on the pages following the balance sheet form part of these accounts

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements

For the year ended 31 December 2021

1 ACCOUNTING POLICIES

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs, together with 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) (‘the SORP’). The PCC is a public benefit entity within the meaning of the Charities SORP (FRS 102).

The financial statements have been prepared under the historic cost convention, modified by the revaluation of investments and land and buildings, which are shown at fair value.

The presentation currency of the financial statements is the Pound Sterling (£).

Going concern

At the time of approval, the COVID19 pandemic continues to have an impact on the UK economy and on the Parish, but the trustees consider that the vaccination programme and other measures taken by the UK Government and the charity have reduced, although not eliminated, the risk of a more enduring impact.

The Treasurer, in conjunction with the trustees, continues to monitor the situation closely and highlights any potential adverse effects on the charity. Despite the current circumstances the trustees believe that the charity’s financial resources and contingency planning is sufficient to ensure the ability of the charity to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

Funds

General unrestricted 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. Funds designated for a particular purpose by the PCC are also unrestricted.

Restricted funds are those funds that must be spent for restricted purposes and details of the funds held and restrictions are provided in Note 11. Endowment funds, where the capital must be retained, are also explained in Note 11.

The accounts 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, or those that are informal gatherings of church members.

Income and Endowments

The following gives details of how and when income is included in the Statement of Financial Activities

Donations and legacies

Collections are recognised when received by or on behalf of the PCC.

Planned giving receivable under Gift Aid is recognised when received.

Income tax recoverable on Gift Aid donations is recognised when the income is recognised.

Grants, legacies and endowment income are accounted for as soon as the PCC is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt is reasonably certain.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

1 ACCOUNTING POLICIES (continued)

Donations and legacies (continued)

Donated services are included in income (and at the same time in resources expended) at the estimated value to the PCC of the service received.

Charitable and other trading activities

Rental income from letting church premises is recognised when the rent becomes due. Funds raised by social events are accounted for gross, after the event has taken place. Sales of books and magazines from the church bookstall are accounted for gross, when received.

Income from investments

Dividends are accounted for when due and payable. Interest is accounted for when received.

Gains and losses on investments

Realised gains and losses are recognised when investments are sold. Unrealised gains and losses are accounted for on the revaluation of investments at 31 December each year.

Expenditure

The financial statements have been prepared under the accruals basis, inclusive of any irrecoverable VAT. Expenditure and any related liabilities are recognised as soon as there is a legal or constructive obligation and settlement is probable and quantifiable.

Donations

Donations are recognised when a commitment has been made externally.

Other costs

Governance costs include the cost of the independent examination of these accounts, the costs of trustee meetings and any legal advice to trustees on governance or constitutional matters.

Pensions

The charity contributes to a defined contribution pension scheme for its staff members. Contributions payable to the scheme are charged to the SOFA as incurred.

Fixed assets

Consecrated property and movable church furnishings

Consecrated and beneficed property of any kind is excluded from the accounts by section 10(2)(a) and (c) of the Charities Act 2011.

Movable church furnishings held by the Rector and Church Wardens on special trust for the PCC, and which require a faculty for disposal, are accounted for as inalienable property, unless consecrated. They are listed in the church’s inventory, which can be inspected at any reasonable time. For inalienable property acquired prior to 2001, there is insufficient cost information available and therefore such assets are not valued in the accounts.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

1 ACCOUNTING POLICIES (continued)

Fixed assets - Consecrated property and movable church furnishings (continued)

Items acquired since 1 January 2001 have been capitalised and depreciated in the financial statements over their currently anticipated useful economic life on a straight-line basis. All expenditure incurred in the year on consecrated or beneficed buildings, or individual items costing less than £1,000, or on the repair of movable church furnishings acquired before 1 January 2001, is written off when incurred.

Freehold land and buildings

Freehold land and buildings owned by the PCC are carried at fair value based on an open market valuation. Any changes in the valuation are recognised in the Statement of Financial Activities.

Other fixtures, fittings and office equipment

Equipment used within the church premises is depreciated on a straight-line basis over five years for office equipment and ten years for Church House and church equipment. Individual items of equipment with a purchase price of £250 or less are written off when the asset is acquired. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the Statement of Financial Activities. An impairment review is carried out at each year-end and any resultant loss identified and included in expenditure for the year.

Investments

Listed investments are included at market value at the Balance Sheet date.

Net gains/losses arising on then revaluation and disposal of investments are recognised in the Statement of Financial Activities. Income deriving from these investments is accounted for on a receivables basis and is recognised through the Statement of Financial Activities.

Current assets

Amounts owing to the PCC at 31 December in respect of fees, rents or other income are shown as debtors, less a provision for amounts that may prove uncollectable.

Stock is stated at the lower of cost and net realisable value.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks. Short term deposits consist of cash held on deposit with the CBF Church of England Funds or other PCC-approved institutions.

Financial instruments

The PCC has elected to apply the provisions of Section 11 'Accounting for financial assets and financial liabilities’ of the Charities SORP (FRS 102) 2019 to all its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

1 ACCOUNTING POLICIES (continued)

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, when the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Government grant income

Grants from government bodies and other sources are received for specific purposes and are recognised in accordance with their individual terms and conditions. Income is recognised when the charity has entitlement to the funds, which is when any performance conditions attached are met, it is probable that the income will be received and the amount can be reliably measured. Grant income will be deferred if received in advance of meeting performance conditions or if the funder specifically states that the income must be spent in a future accounting period.

Operating leases

Costs in respect of operating leases are charged on a straight line basis over the lease term.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

2 INCOME AND ENDOWMENTS Unrestricted Restricted Endowment TOTAL TOTAL
Funds Funds Funds 2021 2020
£ £ £ £ £
2a Donations and Legacies
Planned giving:
Gift Aid donations 110,752 10,500 - 121,252 122,144
Other planned giving 12,019 - - 12,019 10,785
Collections (open plate) at all services 3,416 - - 3,416 1,981
Sundry donations 1,597 - - 1,597 1,544
Income tax recoverable 27,488 2,625 - 30,113 33,549
Grants received 500 - - 500 750
Legacies 11,000 - - 11,000 37,000
166,772 13,125 - 179,897 207,753
2b Charitable Activities
Fees for Weddings, Funerals etc 9,386 - - 9,386 5,245
Choir 254 - - 254 380
Coffee 393 - - 393 409
Church groups and activities:
Arpeggios - - - - 90
Bell Ringers 705 - - 705 130
Fellowship 62 - - 62 500
Flowers 2,030 - - 2,030 720
Parish Magazine Sales 6,633 - - 6,633 572
19,463 - - 19,463 8,046
2c Other trading activities
Church and Church House lettings 2,213 - - 2,213 1,915
St. Michael’s House letting 15,220 - 15,220 -
Fetes, bazaars and other fund-raising events 753 - - 753 938
Church groups and activities:
Bookstall 282 - - 282 163
Fair Trade 7,398 - - 7,398 8,346
Parish Magazine Advertisements 7,668 - - 7,668 8,016
33,534 - - 33,534 19,378
2d Investments
Dividends and interest 42 - 144 186 539
2e Government grants
Coronavirus Job Retention Scheme 1,081 - - 1,081 2,874
TOTAL INCOME AND ENDOWMENTS 220,892 13,125 144 234,161 238,590

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

3 EXPENDITURE Unrestricted Restricted Endowment TOTAL TOTAL
Funds Funds Funds 2021 2020
£ £ £ £ £
3_a_ Raising funds
Fetes, bazaars, other fund-raising events - - - - 29
3b Charitable activities
Missionary and charitable giving:
Relief and development agencies 301 - - 301 528
Home missions and other Church Societies - - - - -
Secular charities 9,078 - - 9,078 6,454
Ministry:
Diocesan parish share 120,389 - - 120,389 122,212
Clergy expenses 1,557 - - 1,557 2,441
Church running expenses:
Salaries 13,481 - - 13,481 11,458
Insurance 6,322 - - 6,322 4,274
Utilities 13,090 - - 13,090 10,877
Other running costs 3,219 - - 3,219 2,980
Upkeep of services 6,334 - - 6,334 4,927
Subcontract costs – verger and organists 7,170 - - 7,170 5,957
Church maintenance 10,238 - - 10,238 6,885
Upkeep of churchyard 1,938 16 144 2,098 2,092
Major repairs/replacements 3,200 - - 3,200 _- _
Church House costs 798 - - 798 3,057
St Michael’s House, London Road 20,132 - - 20,132 503
Training and Mission - - - - 350
Youth costs 252 - - 252 249
Choir expenditure 147 - - 147 401
Depreciation of New Church House equipment 155 - - 155 253
Depreciation of Church equipment 6,516 - - 6,516 4,997
Depreciation of St. Michael’s House equipment
733		 - - 733 -
Bank charges 309 - - 309 329
Independent examination fee - - - - 1,500
Church groups and activities costs:
Arpeggios - - - - 133
Bell Ringers 1,000 - - 1,000 85
Bookstall 189 - - 189 291
Fair Trade 6,571 - - 6,571 7,521
Fellowship 125 - - 125 455
Flowers 1,453 - - 1,453 750
Parish Magazine 3,232 - - 3,232 1,819
237,929 16 144 238,089 203,778
3c Other costs – loss on disposal of fixed assets 462 - - 462 -
TOTAL EXPENDITURE 238,391 16 144 238,551 203,807

During the year, one clergyman (2020: two) was reimbursed expenses totalling £1,557 (2020: £2,441 ), relating mainly to travel and other costs incurred on behalf of church ministry.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

4 MISSIONARY AND CHARITABLE GIVING

The two churches donated £9,379 directly to a variety of charities in the UK and abroad (see table below). In addition, £10,120 was raised for charities as a result of fundraising activities organised by members of the two churches.

Support of disadvantaged people - UK
Support of disadvantaged people - Overseas
Natural disaster appeals - Overseas
Total donations to Institutions
5
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 Donations
2021
2020
£
£
1,979
3,884
7,400
1,898
-
1,200		 No. of
institutions/
individuals
2021
2020
4
9
7
4
-
1		 No. of
institutions/
individuals
2021
2020
4
9
7
4
-
1
9,379
6,982		 11 14

2021
£
13,207
-
274
13,481		 2020
£
11,194
-
264
11,458

The new Director or Music commenced work on 1[st] October being paid through payroll. During the year the PCC contracted for the services of a verger and relief organists, who are paid on a contractor basis on presentation of their invoices. No-one on the payroll, nor the verger or relief organists, earned £60,000 pa or more. The average number of employees during the year was 3 (2020: 3 ).

During the periods when services were suspended and the church office was closed, we were able to claim £1,081 from the government’s Coronavirus Job Retention Scheme for eligible staff on the payroll.

The church operates a defined contribution pension scheme which is available for all staff to join.

There were no other disclosable transactions in respect of PCC members, persons closely connected with them or other related parties.

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

6
FIXED ASSETS
St. Mary’s Church
Freehold
Church
& St. Michael’s
land and
Office
House
House
buildings
equipment
equipment
equipment
£
£
£
£

ACTUAL COST OR VALUATION
At 1 January 2021
625,000
6,641
35,673
134,692

Additions/disposals
-
-
63,636
Disposals
-
-
-
(4,599)
At 31 December 2021
625,000
6,641
35,673 193,729
DEPRECIATION
At 1 January 2021
-
6,641
35,448
96,505
Charge for the year
-
-
155
7,249
Disposals
-
-
-
(4,137)
At 31 December 2021
-
6,641
35,603
99,617
NET BOOK VALUE
At 31 December 2021
625,000
-
70
94,112
At 31 December 2020
625,000
-
225
38,187
TOTAL
£
802,006
63,636
(4,599)
861,043
138,594
7,404
(4,137)
141,861
719,182
663,412

The freehold land and buildings are St Michael’s House, London Road, Woolmer Green, which is used as accommodation for the curate. A desktop valuation of £650,000 was carried out by Alexander Bond & Company in December 2021, for information only. The house was built in the 1950s and its historical cost had not been reflected in the accounts.

7
INVESTMENTS
Quoted Investments:
Investments at 1 January 2021
Unrealised gains – increase in market value
Balance at 31 December 2021
Historic cost		 2021
£
4,948
712
5,660
300		 2020
£
4,629
319
4,948
300

Represented by 242 (2020: 242) shares in the CBF Church of England Investment Fund

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

8 DEBTORS

Income tax recoverable

Other debtors
 2021
£
13,236
5,378
18,614		 2020
£
8,354
1,906
10,260

9 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals
Other creditors
 2021
£
7,778
5,440
13,218		 2020
£
7,036
5,200
12,236

10 FINANCIAL COMMITMENTS

The future minimum lease payments under non-cancellable operating leases, in respect of other equipment, is as follows:

Payable within 1 year
Payable between 1 and 5 years		 2021
2020
£
£
995
158
1,243
-
1,338
158

11 FUND DETAILS

11a Analysis of net assets by fund category at 31 December 2021

Unrestricted
Restricted
Endowment
Funds
Funds
Funds
£
£
£
Fixed Assets for Church use
719,182
-
-
Investment Fixed Assets
-
-
5,660
Current Assets
187,717
4,779
-
Current Liabilities
(13,218)
-
-
Fund Balances
893,681
4,779
5,660		 Total
£
719,182
5,660
192,496
(13,218)
904,120

Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green

Notes to the Financial Statements (continued)

For the year ended 31 December 2021

11 FUND DETAILS (continued)

Endowment fund

The St Michael’s Churchyard Endowment fund is a permanent endowment that requires income to be spent on the grave of Stanley Victor Sales.

Restricted funds

Fund Purpose of fund– to pay for: Movements during the year
St Mary’s Restoration
Fund		 Quinquennial work and other
significant fabric projects		 £43,563 was spent on the boiler
replacement project
St. Mary’s Memorial
Garden		 New tools and gardening equipment £16 was spent
St Mary’s Organ Repair costs No expenditure
St Michael’s Piano or
Organ Fund		 Repair costs No expenditure
St. Mary’s
livestreaming system		 A livestreaming system to enable
churches in the Welwyn team to
stream services to those unable to
attend in person		 £13,125 was raised from the Rector’s
appeal, the live streaming system was
purchased and installed; the balance of
£7,551 was transferred to the St. Mary’s
Reserve fund

Designated funds

Fund Purpose of fund– to pay for: Movements during the year
St Mary’s Reserve Fabric expenditure and emergency
works		 £7,573 was spent on the boiler
replacement project and £5,655 was spent
on the tower clock repair; £7,551 was
transferred in from the St. Mary’s
livestreaming fund
St Michael’s Fabric Fabric expenditure and emergency
works		 No expenditure
St Michael’s House Fabric expenditure and emergency
works		 £20,132 was spent on the refurbishment
and other repairs; £15,220 rental income
was received from letting the property
Commission for altar
frontals and vestments
at St. Mary’s		 Commission using the John
Sainsbury legacy		 The commission was completed and is
now in use, and the final instalment of
£3,200 was paid; £3,600 remains in the
fund
Youth Youth work £252 was spent
The remaining
designated funds		 To provide working capital for
various church groups and activities		 See 10c Funds balances and movement
for the year

11 FUND DETAILS (continued)

11c Funds balances and movements for the year

Fund Opening
Balance
1/1/21		 Income Expenditure Transfers Investment
gains/losses		 Closing
balance
31/12/21
ENDOWMENT FUND 4,948 144 (144) 0 712
St Michaels Church Yard (Sales
Grave Trust)		 5,660
41,688
455
2,082
2,258
0
46,483		 13,125
13,125		 (16)
(16)		 (41,688)
(13,125)
(54,813)		 0 0
439
2,082
2,258
0
RESTRICTED FUNDS
St Mary's Restoration
St. Mary's Memorial Garden
St. Mary's Organ
St. Michael's Piano or Organ
St. Mary's livestreaming system
TOTAL RESTRICTED FUNDS
4,779
1,875
40,003
1,818
10,000
6,800
2,695
245
4,026
892
931
8,245
283
1,961
79,774
151,593
231,367		 15,220
705
282
2,030
14,301
62
7,398
39,998
180,894
220,892		 (1,875)
(13,228)
(20,132)
(3,200)
(252)
(1,000)
(189)
(1,453)
(3,232)
(125)
(6,571)
(51,257)
(187,133)
(238,390)		 7,551
(400)
(1,001)
(9,361)
(799)
(4,010)
58,822
54,812		 0
0
-		 0
34,326
1,818
5,088
3,600
2,443
245
3,731
585
507
9,953
220
1,989
64,505
204,176
UNRESTRICTED FUNDS
Designated:
St Mary's Restoration
St. Mary's Reserve
St. Michael's Fabric
St. Michael's House
Commission for altar frontals and
vestments at St. Mary's
Youth
Designated for church groups
and activities:
Arpeggios Hand Bell Ringers
St. Mary's Bell Ringers
St. Mary's Bookstall
St. Mary's Flowers
Parish Magazine
Fellowship
St. Mary's Fairtrade Stall
Total designated funds
General unrestricted fund
TOTAL UNRESTRICTED FUNDS*
268,681
625,000 0 0 0 0
REVALUATION RESERVE
St. Michael's House, Woolmer Green 625,000
CHARITY'S TOTAL FUNDS 907,798 234,161 (238,550) - 712 904,120
*** General unrestricted fund: breakdown** *** General unrestricted fund: breakdown** *** General unrestricted fund: breakdown**
Opening
Balance
1/1/21		 Closing
Balance
31/12/21
Cash 115,157 104,598
Fixed assets
Debtors
Liabilities
TOTAL		 38,412
10,260
(12,236)
151,593		 94,182
18,614
(13,218)
204,176