## **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 2022** ## **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 2022** ## **Aim and purposes** The PCC of the parish has the responsibility of co-operating with the incumbent, the Rev’d Canon 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 Charity 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: - Worship and prayer; learning about the Gospel; and developing their knowledge and trust in Jesus. - Provision of pastoral care for people living in the parish. 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. The restrictions associated with the pandemic began in March 2020, and concerning the time period of this report, 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. The common cup at communion services was reintroduced during the year, but we still do not physically share the peace. 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. ## **Plans for the future** Although there was a Mission Action Plan in place prior to COVID19, this was 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. However we are now set to revisit this with an open meeting to look at a Mission Action Plan in March 2023. The restrictions of COVID19 curtailed our church activities. However from the spring of 2022 we returned to a sort of ‘business as usual’ model. Probably the area we are still needing to reclaim is our work with children and families. However a good first step has been made with this, with a rejuvenated Junior Choir and the offer of Choral Scholarships. - 1 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Annual Report for the year ended 31 December 2022 (continued)** ## **Achievements and Performance** ## _Worship and Prayer_ All are welcome to attend our regular services. At present, there are 256 parishioners on the Church Electoral Roll. 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 2022 we appointed Robert Milner as our Director of Music. This has led to an enlarged and revitalised musical tradition, with a large choir, complete with children and young people, offering an outstanding musical contribution to our worship. ## _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. In 2022 regular donations of food from the congregation and the wider community were left in the porch at St Mary’s church to support anyone struggling because of the cost of living crisis. These donations as well as the financial support to charities meant that this target was met this year. 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. 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 take a key role as participant and venue in Welwyn Week and were pleased that it was able to go ahead in 2022, having unfortunately had to be cancelled in 2020 and 2021. In addition, the parish runs a walking group, two book groups, a theatre group, and Saturday Breakfast events, which are open to church and non-church members. We produced a successful pantomime in 2022, which was well attended, entertaining and raised money for charity. Further details of activities and up to date information can be found on our website. - 2 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Annual Report for the year ended 31 December 2022 (continued)** ## **Financial Review** ## _Income_ Total income was £221,761 _(2021: £234,161),_ a decrease of £12,400 on last year. There was a small increase of £1,677 from regular giving and £3,049 from ‘open plate’ collections in services. This can be attributed to worship in church being possible for most of the year (compared to the previous year when this was affected by the COVID-19 restrictions), and a good uptake of the Parish Giving Scheme at St. Mary’s which now has 16 donors. We had no income from one-off appeals _(2021: £10,500)_ and received no legacies in 2022 _(2021: £11,000)._ The Giving Station for card donations which was installed in St. Mary’s Church in November 2021 has been well used. It offers the congregation an alternative to donating cash during services and an option for people to donate who visit the church at other times. We received grants of £5,059 from the Diocese and Herts County Council for energy costs and the Warm Spaces initiatives which began in the Autumn at both churches. St Michael’s House was rented out for the first few months of the year, after which it was occupied by our new curates Rev’d Christie and Rev’d Ryan Gilfeather who we welcomed in July. We are happy that the Romanian Orthodox Church has started using St Michael’s Church for regular services which has brought in welcome Church lettings income, and the income from Church House bookings has doubled. Income from our charitable activities was very similar to the previous year, and income from trading activities was £1,259 less than the previous year. 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 £225,562 _(2021: £238,551)_ , a decrease of £12,989 on last year. The costs associated with church services, and running and maintaining the buildings and churchyards, were £2,512 lower than in 2021, partly due to the clock repair at St Mary’s in 2021. Utility costs were £1,523 higher than last year due to the increase in gas and electricity prices when our fixed deals came to an end in the Autumn. There was a big decrease in expenditure of £18,056 on St Michael’s House, following the cost of the refurbishment last year. There was a small increase of 1.8% in the diocesan parish share. ## _Summary_ Overall the charity recorded a deficit of £4,465 _(2021: deficit of £3,678)._ There was capital expenditure of £15,976 on the new fire alarm system installed at St. Mary’s. The cash balances (bank and deposit accounts) fell to £165,383 ( _2021 £172,675_ ). The quinquennial inspection, due to take place in the Autumn, was delayed and is scheduled for March 2023. There may be some modest expenditure this year as a result of the inspection. We expect a big increase in utility bills this year, possibly in the region of £23,000, which will be met by reserves. ## **Reserves** The charity’s total funds dropped by £4,465 to £899,655 ( _2021: £904,120_ ). Restricted and endowment funds were £9,775 ( _2021: £10,439_ ). Designated unrestricted funds set aside for emergency expenditure and capital for church groups and activities fell to £48,082 ( _2021: £64,505_ ). General unrestricted funds increased to £216,798 ( _2021: £204,176_ ). - 3 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Annual Report for the year ended 31 December 2022 (continued)** ## **Financial Review (continued)** Unrestricted cash reserves (i.e. undesignated money freely available to spend on the charity’s purposes) were £113,631 ( _2021: £104,600_ ). The PCC’s reserves policy is to hold sufficient unrestricted cash reserves to cover at least four months' operating expenses, which the trustees believe will provide stability for the charity, and they are 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. Two potential safeguarding incidents occurred in 2022. The PCC was informed as was the Diocesan Safeguarding officer – in both cases he judged that no further action should be taken. 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. - 4 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Annual Report for the year ended 31 December 2022 (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. - 5 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Annual Report for the year ended 31 December 2022 (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 2022, the following served as members of the PCC: _Incumbent:_ Rev'd Dr David Munchin Chairman _Clergy:_ Rev’d Christie Gilfeather Appointed 18[th] July _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 Georgina Beck Mr Stuart Jenkin Mrs Margaret Varco Ms Crystal Lam Appointed 25[th] May Mrs Elizabeth Hesketh Appointed 18[th] July _Secretary:_ Mrs Louise Hughes Signed on behalf of the PCC by ………………………………………….. The Rev'd Dr David Munchin (Chairman) ……………………….. Date - 6 - ## **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 2022. ## _**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 - 7 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Statement of Financial Activities** ## **For the year ended 31 December 2022** |**Unrestricted**
**Funds**
**Note**
**£**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
2a
169,316
Charitable activities
2b
19,716
Other trading activities
2c
32,275
Investments
2d
305
Government grant
2e -____
**TOTAL**
221,612
**EXPENDITURE ON:**
Raising funds
3a
225
Charitable activities
3b
225,188
Other Costs - loss on disposal of fixed assets
3c
-
**TOTAL**
225,413
**NET INCOME**
(3,801)
**NET GAINS ON INVESTMENTS**
-
**TRANSFERS BETWEEN FUNDS**
-
**NET MOVEMENT IN FUNDS**
(3,801)
**BALANCES BROUGHT FORWARD**
**AT 1 JANUARY 2022**
893,681
**BALANCES CARRIED FORWARD**
**AT 31 DECEMBER 2022**
889,880|**Unrestricted**
**Funds**
**Note**
**£**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
2a
169,316
Charitable activities
2b
19,716
Other trading activities
2c
32,275
Investments
2d
305
Government grant
2e -____
**TOTAL**
221,612
**EXPENDITURE ON:**
Raising funds
3a
225
Charitable activities
3b
225,188
Other Costs - loss on disposal of fixed assets
3c
-
**TOTAL**
225,413
**NET INCOME**
(3,801)
**NET GAINS ON INVESTMENTS**
-
**TRANSFERS BETWEEN FUNDS**
-
**NET MOVEMENT IN FUNDS**
(3,801)
**BALANCES BROUGHT FORWARD**
**AT 1 JANUARY 2022**
893,681
**BALANCES CARRIED FORWARD**
**AT 31 DECEMBER 2022**
889,880|**Restricted**
**Endowment**
**2022** _2021_
**Funds Funds TOTAL**_TOTAL_
**£**
**£**
**£**
_£_
-
-
**169,316**
_179,897_
-
-
**19,716**
_19,463_
-
-
**32,275**
_33,534_
-
149**454** _186_

-
-
-
_1,081_
-
149
**221,761**
_234,161_
-
-
**225**
-
149
**225,337**
_238,089_
-
-
-
_462_
149
**225,562**
_238,551_
-
-
(**3,801)**
_(4,390)_.
-
(664)
**(664)**
_712_
-
-
-
_-_
-
(664)
**(4,465)**
_(3,678)_
4,779
5,660
**904,120**
_907,798_
4,779
4,996
**899,655**
_904,120_| |---|---|---| ||
225
225,188
-|| ||225,413|| ||
(3,801)
-
-|| ||(3,801)
893,681|| ||
889,880|| The notes on the pages following the balance sheet form part of these accounts - 8 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Balance Sheet at 31 December 2022** |**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**|**2022**
_2021_
**£**
**£**
**_£_**
**_£_**
**721,627**
_719,182_
**4,996**
_5,660_
**726,623**
_724,842_
**1,107**
_1,207_
**19,885**
_18,614_
**29,036**
_29,001_
**136,347**
_143,674_
**186,375**
_192,496_
**(13,343)**
_(13,218)_
**173,032**
_179,278_
**899,655**
_904,120_
**4,996**
_5,660_
**4,779**
_4,779_
**264,880**
_268,681_
**625,000**
_625,000_
**899,655**
**_904,120_**| |---|---| 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 - 9 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements** ## **For the year ended 31 December 2022** ## **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** 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. - 10 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** ## **For the year ended 31 December 2022** ## **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. - 11 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** **For the year ended 31 December 2022** ## **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 the revaluation and disposal of investments are recognised in the Statement of Financial Activities. Income deriving from these investments is accounted for on a receivable 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. - 12 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** ## **For the year ended 31 December 2022** ## **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. - 13 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** ## **For the year ended 31 December 2022** |**2**|**INCOME AND ENDOWMENTS**|**Unrestricted**|**Restricted**|**Endowment**|**TOTAL**|_TOTAL_|| |---|---|---|---|---|---|---|---| |||**Funds**|**Funds**|**Funds**|**2022**|_2021_|| |||**£**|**£**|**£**|**£**|_£_|| |2a|_Donations and Legacies_||||||| ||Regular giving|113,023|-||**113,023**|_111,346_|| ||One off donations|3,175|-|-|**3,175**|_12,338_|| ||Online and card reader donations|9,360|-|-|**9,360**|_9,587_|| ||“Open plate” collections at services|6,465|-|-|**6,465**|_3,416_|| ||Sundry donations|1,586|-|-|**1,586**|_1,597_|| ||Income tax recoverable|29,898|-|-|**29,898**|_30,113_|| ||Grants received|5,809|-|-|**5,809**|_500_|| ||Legacies|-|-|-|-|_11,000_|| |||169,316|-|-|**169,316**|_179,897_|| |2b|_Charitable Activities_||||||| ||Fees for Weddings, Funerals etc|8,234|-|-|**8,234**|_9,386_|| ||Choir|400|-|-|**400**|_254_|| ||Coffee|1,014|-|-|**1,014**|_393_|| ||Church groups and activities:||||||| ||Arpeggios|-|-|-|**-**|_-_|| ||Bell Ringers|1,359|-|-|**1,359**|_705_|| ||Fellowship|465|-|-|**465**|_62_|| ||Flowers|3,675|-|-|**3,675**|_2,030_|| ||Parish Magazine Sales|4,569|-|-|**4,569**|_6,633_|| |||19,716|-|-|**19,716**|_19,463_|| |2c|_Other trading activities_||||||| ||Church and Church House lettings|9,052|-|-|**9,052**|_2,213_|| ||St. Michael’s House letting|5,981||-|**5,981**|_15,220_|| ||Fetes, bazaars and other fund-raising events|3,209|-|-|**3,209**|_753_|| ||Church groups and activities:||||||| ||Bookstall|227|-|-|**227**|_282_|| ||Fair Trade|6,655|-|-|**6,655**|_7,398_|| ||Parish Magazine Advertisements|7,151|-|-|**7,151**|_7,668_|| |||32,275|-|-|**32,275**|_33,534_|| |2d|_Investments_||||||| ||||||||| ||Dividends and interest|305|-|149|**454**|186|| ||||||||| |2e|_Government grants_||||||| ||||||||| ||Coronavirus Job Retention Scheme|-|-|-|-|_1,081_|| ||||||||| ||||||||| |**TOTAL INCOME AND ENDOWMENTS**||**221,612**|**-**|**149**|**221,761**|_234,161_|| ||||||||| - 14 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** ## **For the year ended 31 December 2022** |**3**|**EXPENDITURE**|**Unrestricted**|**Unrestricted**|**Restricted**|**Endowment**|**TOTAL**|_TOTAL_| |---|---|---|---|---|---|---|---| ||||**Funds**|**Funds**|**Funds**|**2022**|_2021_| ||||**£**|**£**|**£**|**£**|_£_| |3_a_|_Raising funds_||||||| ||Fetes, bazaars, other fund-raising events||225|-|-|**225**|-| |_3b_|_Charitable activities_||||||| ||Mission giving and donations||10,168|-|-|**10,168**|_9,379_| ||Ministry:||||||| ||Diocesan parish share||122,597|-|-|**122,597**|_120,389_| ||Clergy expenses||2,536|-|-|**2,536**|_1,557_| ||Church running expenses:||||||| ||Salaries||15,582|-|-|**15,582**|_13,481_| ||Insurance||5,906|-|-|**5,906**|_6,322_| ||Utilities||14,612|-|-|**14,612**|_13,090_| ||Other running costs||3,935|-|-|**3,935**|_3,219_| ||Upkeep of services||7,343|-|-|**7,343**|_6,334_| ||Subcontract costs – verger and organists||6,105|-|-|**6,105**|_7,170_| ||Church maintenance||3,936|-|-|**3,936**|_10,238_| ||Upkeep of churchyard||2,021|-|149|**2,170**|_2,098_| ||Major repairs/replacements||-|-|-|-|_3,200 _| ||Church House costs||4,010|-|-|**4,010**|_798_| ||St Michael’s House, London Road||2,076|-|-|**2,076**|_20,132_| ||Training and Mission||-|-|-|**-**|_-_| ||Youth costs||722|-|-|**722**|_252_| ||Choir expenditure||147|-|-|**147**|_147_| ||Depreciation of New Church House equipment||68|-|-|**68**|_155_| ||Depreciation of Church equipment||8,469|-|-|**8,469**|_6,516_| ||Depreciation of St. Michael’s House equipment||879|-|-|**879**|_733_| ||Bank charges||356|-|-|**356**|_309_| ||Independent examination fee||-|-|-|**-**|_-_| ||Church groups and activities costs:||||||| ||Arpeggios||-|-|-|**-**|_-_| ||Bell Ringers||1,151|-|-|**1,151**|_1,000_| ||Bookstall||210|-|-|**210**|_189_| ||Fair Trade||6,157|-|-|**6,157**|_6,571_| ||Fellowship||51|-|-|**51**|_125_| ||Flowers||2,936|-|-|**2,936**|_1,453_| ||Parish Magazine||3,215|-|-|**3,215**|_3,232_| ||||225,188|-|149|**225,337**|_238,089_| |_3c_|Other costs – loss on disposal of fixed assets||-|-|-||_462_| ||**TOTAL EXPENDITURE**||**225,413**|**-**|**149**|**225,562**|_238,551_| During the year, two clergy ( _2021: one_ ) were reimbursed expenses totalling £2,536 ( _2021: £1,557_ ), relating mainly to travel and other costs incurred on behalf of church ministry. - 15 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** ## **For the year ended 31 December 2022** ## **4 MISSIONARY AND CHARITABLE GIVING** The two churches donated £10,168 directly to a variety of charities in the UK and abroad (see table below). In addition, £7,222 was raised for charities as a result of fundraising activities organised by the 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**
**2022**
_2021_
**£**
**_£_**
**3,813**
_1,979_
**6,355**
_7,400_
-
_-_|**No. of**
**institutions/**
**individuals**
**2022**
_2021_
**9**
_4_
**8**
_7_
-
_-_|**No. of**
**institutions/**
**individuals**
**2022**
_2021_
**9**
_4_
**8**
_7_
-
_-_| |---|---|---|---| ||**10,168**
_9,379_|**17**|_11_| |||**2022**
**£**
**15,239**
**60**
**283**
**15,582**|_2021_
_£_
_13,207_
_-_
_274_| ||||_13,481_| The Director of Music resigned in July and during the summer his duties were carried out by relief organists. A voluntary Director of Music started work in September. 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 ( _2021_ : _3_ ). 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. - 16 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** ## **For the year ended 31 December 2022** |**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 2022
625,000
6,641
35,673
193,729

Additions/disposals-
-
-
11,861
Disposals
-
-
-
-
At 31 December 2022
625,000
6,641
35,673 205,590
**DEPRECIATION**
At 1 January 2022
-
6,641
35,603
99,617
Charge for the year
-
-
68
9,348
Disposals
-
-
-
-
At 31 December 2022 625,000
6,641
35,671
108,965
**NET BOOK VALUE**
_At 31 December 2021_
_625,000_
_-_
_70_
_94,112_
**At 31 December 2022**
**625,000**
**-**
**2**
**96,625**|
**TOTAL**
**£**
861,043
11,861
-
872,904
141,861
9,416
-
151,277
_719,182_
**721,627**| |---|---| 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 2022
Unrealised losses – decrease in market value
**Balance at 31 December 2022**
Historic cost|**2022**
**£**
**5,660**
**(664)**
**4,996**
300|_2021_
_£_
_4,948_
_712_| |---|---|---| |||_5,660_| |||_300_| Represented by 242 _(2021: 242)_ shares in the CBF Church of England Investment Fund. - 17 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** ## **For the year ended 31 December 2022** |**8**
**DEBTORS**
**2022**
**£**
Income tax recoverable
**13,871**
Other debtors
**3,526**
Prepayments and accrued income
**2,488**

**19,885**
**9**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2022**
**£**
Trade creditors
**£152**
Accruals
**£9,569**
Other creditors
**£3,622**
**13,343**|_2021_
_£_
_13,236_
_5,378_
_-_
_18,614_
_2021_
_£_
_7,778_
-
_5,440_
_13,218_| |---|---| ## **10 FINANCIAL COMMITMENTS** The future minimum lease payments under non-cancellable operating leases, in respect of other equipment, is as follows: |**2022**
**£**
Payable within 1 year
**995**
Payable between 1 and 5 years
**-**

**995**
**11**
**FUND DETAILS**|_2021_
_£_
_995_
_1,243_| |---|---| ||_2,338_| ||| _11a Analysis of net assets by fund category at 31 December 2022_ |**Unrestricted**
**Restricted**
**Endowment**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
Fixed Assets for Church use
721,627
-
-
Investment Fixed Assets
-
-
4,996
Current Assets
181,596
4,779
-
Current Liabilities
(13,343)
-
-

**Fund Balances**
**889,880**
**4,779**
**4,996**|**Total**
**£**
721,627
4,996
186,375
(13,343)| |---|---| ||
**899,655**| - 18 - ## **Parochial Church Council of the Ecclesiastical Parish of Welwyn and Woolmer Green** ## **Notes to the Financial Statements (continued)** **For the year ended 31 December 2022** ## **11 FUND DETAILS (continued)** - _11b Description of funds_ ## 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 Memorial
Garden|New tools and gardening equipment|No expenditure| |St Mary’s Organ|Repair costs|No expenditure| |St Michael’s Piano or
Organ Fund|Repair costs|No expenditure| ## Designated funds |**Fund**|**Purpose of fund –to pay for:**|**Movements during the year **| |---|---|---| |St Mary’s Reserve|Fabric expenditure and emergency
works|£15,976 was spent on the new fire alarm
system| |St Michael’s Fabric|Fabric expenditure and emergency
works|No expenditure| |St Michael’s House|Fabric expenditure and emergency
works|£5,981 rental income was received from
letting the property, £1,988 was spent on
repairs and maintenance| |St Mary’s commission
for altar frontals and
vestments|Commission using the John
Sainsbury legacy|No expenditure| |Youth|Youth work|£722 was spent including the Summer
Club resources and Children’s corner at
St. Mary’s.| |St Mary’s Choir (new
fund)|Choral scholar costs and other choir
expenses|£3,737 was transferred into the fund from
lunchtime recitals and choir revenue.| |The remaining
designatedfunds|To provide working capital for
various churchgroups and activities|See 11c Funds balances and movement
forthe year| - 19 - ## **11 FUND DETAILS (continued)** _11c Funds balances and movements for the year_ |**Fund Name**|Opening
Balance
1/1/22|**Income**|**Expenditure**|**Transfers**|**Investment**
**gains/losses**|**Closing**
**balance**
**31/12/22**| |---|---|---|---|---|---|---| |**REVALUATION RESERVE**||**0**|**0**|**0**|**0**|| |St. Michael's House, Woolmer Green|**625,000**|||||**625,000**| ||**5,660**|**149**|**(149)**|**0**|**(664)**|| |**ENDOWMENT FUND**||||||| |St Michaels Church Yard (Sales
Grave Trust)||||||**4,996**| ||439
2,082
2,258|**-**|**0**|**0**|**0**|**439**
**2,082**
**2,258**| |**RESTRICTED FUNDS**||||||| |St. Mary's Memorial Garden
St. Mary's Organ
St. Michael's Piano or Organ
**TOTAL RESTRICTED FUNDS**||||||| ||**4,779**|||||**4,779**| ||34,326
1,818
5,088
3,600
2,443
-
245
3,731
585
507
9,953
220
1,989
**64,505**
**204,176**
**268,681**|5,981
3,737
0
1,359
227
3,675
11,421
465
6,655
**33,520**
**188,093**
**221,612**|(15,976)
(1,988)
(722)
-
(1,151)
(210)
(2,936)
(3,215)
(51)
(6,157)
**(32,406)**
**(193,008)**
**(225,413)**|(1,000)
(15,500)
(200)
(837)
**(17,537)**
**17,537**
**-**|**0**
**0**|**18,350**
**1,818**
**9,081**
**3,600**
**1,721**
**3,737**
**245**
**3,939**
**601**
**246**
**2,659**
**434**
**1,650**
**48,082**
**216,798**| |**UNRESTRICTED FUNDS**||||||| |**Designated:**
St. Mary's Reserve
St. Michael's Fabric
St. Michael's House
Commission for altar frontals and
vestments at St. Mary's
Youth
St Mary's Choir
**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**
**General unrestricted fund ***
**TOTAL UNRESTRICTED FUNDS**||||||| |||||||**264,880**| |||||||| |**CHARITY'S TOTAL FUNDS**|**904,120**|221,761|(225,562)|-|(664)|**899,655**| |*** General unrestricted fund breakdown**|*** General unrestricted fund breakdown**|*** General unrestricted fund breakdown**| |---|---|---| ||Opening
Balance
1/1/22|**Closing**
**Balance**
**31/12/22**| |**Cash**|104,598|**113,629**| |Fixed assets
Debtors
Liabilities
**TOTAL**|94,182
18,614
(13,218)
204,176|**96,627**
**19,885**
**(13,343)**
**216,798**| - 20 -