St. Anne’s, Highgate
Annual Report 2021.
The two highlights of the year were, undoubtedly, the Artisan Fair and the John Etheridge/Vimala Rowe concert.
Artisan Fair:
This was the first time we had done this, inspired and helped by St. Mary’s Primrose Hill, and it turned out to be a great success. I was impressed by the stalls and the number of people who came through the doors throughout the day. If I recall correctly, it raised around £2,000 which was a great result for a first attempt. Many of the stallholders are keen to return, and this can only grow. Our especial thanks go to Marion Rushbrook for all of her work behind the scenes to make this happen.
John Etheridge and Vimala Rowe Concert:
Another great evening with John and Vimala, and well-supported. Our thanks to Paul Maskell for organising this, and he has grander plans for 2022!
Overview of 2021:
2021 was another year over-shadowed by the Covid pandemic. As cases began to rise dramatically following Christmas, and out of concern for the safety of the congregation, the PCC voted to close the church after the Feast of the Epiphany. The church was re-opened on Easter Sunday. Continuing concern made it difficult to restart many church events as we might have hoped. However, it was possible to restore the cantors to the Sunday Mass and hold some events in the second half of the year, most notably the Artisan Fair and the Etheridge/Rowe concert.
Our new Reader – Carola Darwin:
We were delighted in 2021 to welcome our new Reader, Carola Darwin, who was licensed on 24th June, at St. John’s, West Ealing, by the Bishop of Willesden. I was delighted to be there and place her Reader’s scarf around her head, and equally delighted and amused to be asked, as I arrived at the church, to bless a young Sikh couple who had just got married!
Pop up Fair:
In the summer we held a ‘pop-up’ fair and were blessed with glorious weather, so we were, largely, able to be outside. Although it didn’t raise quite as much as previous fairs, the format of doing everything on the day made it much easier and, perhaps, more fun for all involved.
Children’s Christmas Video:
Our thanks to Carola Darwin for organising a second Children’s Christmas video. Once again, a joy to watch and our thanks too to the Fleet Singers for their participation.
Walsingham Pilgrimage:
Very sadly it was not possible to hold our Annual Pilgrimage to Walsingham during 2021.
Holy Week:
For the second year it was not possible to celebrate the usual Holy Week liturgies, but more things will return in 2022, but services were able to resume, appropriately, on Easter Sunday, with a new Missa Brevis written by our own Matthew Power.
Our Palm Sunday Mailing also included a setting of a poem by Marie Post, by Carola Darwin. You can hear it again here:
- https://www.dropbox.com/s/a0wor9aws86nlz9/Palm%20Sunday%20 %20Carola%20Darwin.mp4?dl=0
‘Greening St. Anne’s.’
We are all aware of the environmental imperative and the PCC has agreed to explore ways in which we can make St. Anne’s a ‘greener’ church and reduce our carbon-footprint. Carola Darwin, who had done some work on this as part of her training to become a Reader will lead us on this.
Church Shop:
The Church Shop on Swain’s Lane has now re-opened, although we have fewer volunteers than we had pre-pandemic. We need new people to step forward and offer a few hours a week.
Partnership with HNCP.
Despite the pandemic, we have continued our strong partnership with Highgate New Town Community Partnership, and been pleased to support the work of the CEO, Andrew Sanalitro who has continued to work from St. Anne’s in these difficult times.
HNCP is facing a challenging time as it seeks to raise funds to equip the new Community Centre on Bertram Street which is due to open in 2023. It is also hoped that, as things begin to ‘unlock,’ more Community activities will return to St. Anne’s.
Occasional Offices:
There were no weddings or baptisms in 2021.
We did, however, mark, host and celebrate the life of our brother Desmond Davies who died this year.
St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total This year Last year
Unrestricted Designated Restricted Endowment
St Anne’s, Highgate
www.saintanneshighgate.co.uk
Financial Report of the Parochial Church Council Registered Charity 1130501
for the year ended 31 December 2021
supplementing the Annual Report
Priest:
The Revd Andrew Meldrum 106 Highgate West Hill London N6 6AP
Treasurer:
Michael Harris
Bank:
HSBC Bank plc 69 Pall Mall London SW1Y 5EY Sort code 40 11 58, account no 6012 3064
Independent Examiner: Supriya Gureja
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09 April 2022 Page 1
St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total Unrestricted Designated Restricted Endowment This year Last year
Independent Examiner’s Report to the Trustees (P.C.C.)
Respective responsibilities of Trustees and Independent Examiner
The Parochial Church Council (‘PCC’) are responsible as Trustees for the preparation of these accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
As Independent Examiner my responsibility is to:
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examine the accounts under section 145 of the Charities Act,
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to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and
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to state whether particular matters have come to my attention.
Basis of Independent Examiner’s statement
My examination was carried out in accordance with general Directions given by the Charity Commission and with the Church Accounting Regulations 200 6, in line with the guidance in PCC Accountability: The Charities Act 2011 and the PCC , 5[th] edition issued by the Church of England in 2016. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees (the PCC) 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
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(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 Charities Act, and to prepare accounts which agree with the accounting records and comply with the accounting requirements of the Charities Act, have not been met; or
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(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed…………………………………………….. Date……………………………..
Supriya Gureja ACCT
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St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total
Unrestricted Designated Restricted Endowment
This year Last year
Financial Review
This year St Anne’s had a surplus (£47,182) as income (£122,331 ) exceeded expenditure (£75,419) . The most significant change vs the lock-down impacted 2020 was an improvement in both fundraising and church lettings by over £20,000 while other donations rose in excess of £8,000 vs 2020. Our charitable donations fell by £7,500
INCOME
Gift Aided giving through Standing Orders was some £28,658, only £384 up on the previous year. There are currently 33 regular givers – this is 1 less than last year . Giving via Gift Aid envelopes dropped to £82 in 2021 vs £140 in 2020.
Loose plate collections benefitted from the re-opening and rose to £3,591 from £1,794 . (HMRC allow Gift Aid claims up to £8,000 without a donor mandate, so all our loose plate collections now qualify.) Tax recoverable from Gift Aid fell by £420 to £7,032.
Total Giving in 2021 was £75,761 (including tax refund), up just short of £8,000 on the previous year, aided by a £20,000 one off donation.
We continued to benefit from a substantial historic grant from the St Pancras Church Lands Trust with four payments of £3,000 though this represented a fall of £2,000 on the previous year
Takings from the shop only improved by £80 to £1,308 of income despite the re-opening. This compares to £2,100 of rental expenses which leads to a loss of nearly £800 excluding future council taxes.
Church lettings rose sharply to £39,322 vs. £23,039 aided by over £12,000 revenue from Just Park while we continue to benefit from the mast income which is projected to remain flat in 2022.
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St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
| Total | ||||||
|---|---|---|---|---|---|---|
| Unrestricted | Designated | Restricted | Endowment | This year | Last year |
EXPENDITURE
More than half of our expenditure remains our contribution to the Diocesan Common Fund , to pay for the training and provision of priests (including our own),[i] clergy housing and other central services and ministry . The Common Fund rate for a Parish in London currently stands at £82,800 but in agreement with the PCC St Anne’s reduced this to assist the solvency of the church and payments in 2020 and reached a total of £53,200 . For 2021, our Common Fund contribution fell further to £40,000 to mitigate the fall in income during 2020. The contribution will rise to £45,000 in calendar year 2022.
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St Anne's Highgate - 1130501
Total
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Unrestricted Designated Restricted Endowment This year Last year
Electricity & Gas, combined our second largest expense remained largely unchanged in 2021 yet this will inevitably rise due to both hikes due to reduced global supplies of gas (which also raises the marginal cost of electricity) and any increased opening of the church relative to last year. An analysis of potential operational benefits from more efficient and greener boiler may help to mitigate this cost in the future. This may also be facilitated by utilising the cheaper electricity from the solar panel agreement.
Music expenditure rose £685 to £7,840
Costs for insurance fell almost £1,800 to £5,723. The cost of insurance will be rising nearly 10% in 2022 to £486.38 per month.
Expenditure
| Raising funds | ||||||
|---|---|---|---|---|---|---|
| 1730 - Cost of fund-raising events | 1,162 | — | — | — | 1,162 | 692 |
| 1735 - Shop expenses | 2,100 | — | — | — | 2,100 | 2,100 |
| Raising funds Totals | 3,262 | — | — | — | 3,262 | 2,792 |
| Expenditure on charitable activities | ||||||
| 1800 - Charities | — | — | — | — | — | 7,500 |
| 1910 - Diocesan Common Fund | 40,000 | — | — | — | 40,000 | 53,200 |
| 2101 - Priest's expenses | — | — | — | — | — | — |
| 2130 - Parsonage house | 793 | — | — | — | 793 | 682 |
| 2201 - Pilgrimage, study, parish events | 240 | — | — | — | 240 | 207 |
| 2210 - Children's church | — | — | — | — | — | — |
| 2216 - Lunches | — | — | — | — | — | — |
| 2301 - Church insurance | 5,723 | — | — | — | 5,723 | 7,513 |
| 2330 - Church maintenance | 790 | — | — | — | 790 | 594 |
| 2340 - Upkeep of services | 669 | — | 332 | — | 1,002 | 1,900 |
| 2345 - Music | 800 | — | 7,040 | — | 7,840 | 7,125 |
| 2350 - Upkeep of churchyard | — | — | — | — | — | 1,460 |
| 2360 - Administration | 55 | — | — | — | 55 | 194 |
| 2370 - Visiting priests | — | — | — | — | — | — |
| 2380 - Flowers | — | — | 427 | — | 427 | 490 |
| 2401 - Church running - electricity | 6,734 | — | — | — | 6,734 | 6,350 |
| 2410 - Church running - gas | 3,114 | — | — | — | 3,114 | 3,017 |
| 2445 - Church running - other | 643 | — | 146 | — | 789 | 2,289 |
| 2601 - Governance costs | — | — | — | — | — | — |
| 2701 - Church major repairs | 4,646 | — | — | — | 4,646 | — |
| Expenditure on charitable | 64,210 | — | 7,946 | — | 72,156 | 92,526 |
| activities Totals | ||||||
| Expenditure Grand totals | 67,473 | — | 7,946 | — | 75,419 | 95,319 |
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St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
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Total
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Unrestricted Designated Restricted Endowment This year
Last year
COMMENTARY
The finances of St Anne’s had seen its reserves deplete significantly over recent years. Excluding round figures for the Millfield money of £500,000 in 2015 and £600,000 since 2016, which may have been serving to mask the true financial position of the church, its worth per the balance sheet has fallen from £166,000 at the end of 2015 to £90,000 at the end of 2020 . The £47,182 surplus has improved the situation significantly. However the nonrecurrence of the £20,000 donation in 2021 and the rise in energy costs and overall inflation relative to recurring contributions will significantly reduce this surplus in 2022. With the subsequent rise in common fund contributions in 2023, it is likely that surpluses in 2023 will be modest and hence vulnerable to the cost of any one off repairs.
Very little can be done to rectify this in terms of adjusting ongoing expenditure . The main cost drivers are the common fund contribution. The second is that we occupy an old building which places a heavy burden on our congregation to insure, run and maintain it, despite grants available and generous donations made towards the latter.
In 2009 St Anne’s received a £500,000 grant from the St Pancras Foundation plus £100,000 in January 2016. The money is to be used “f or the benefit of those aged 22 years or below, with their families, living in the south-east of England” in ways specified by the grant. In 2018 two payments of £5,000 each were made for the development of the building for use in youth-related projects called for by the grant. In 2019 the PCC agreed to fund, in conjunction with HNCC, a woodwork grant to support young people. A further sum of £7,500 of the Millfield money was used for this purpose. After interest earnings of £1,507, and the expenditure above, the Fund fell to £610,277 at the end of 2020. In 2021, the only change to the fund was interest income of £150 which raised the balance to £610,427
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Notes to ‘Analysis of income & expenditure’ table
For explanation of the split between ‘Unrestricted’, ‘Designated’, ‘Restricted’ and ‘Endowment’ Funds , see the notes on ‘Funds’ at the end of this report.
INCOME
Gift Aid Standing Orders are very clearly the mainstay of the church’s income
Other planned giving is regular giving via the Charities Aid Foundation or regular donors whose donations do not qualify for Gift Aid.
Loose plate collections are non-attributable (non “envelope”) money placed on the collection plate during church services. Recent changes in regulation allow us to claim gift aid on these donations within an ample limit, even though they are not supported by gift aid mandates.
One-off Gift Aid gifts are as implied. These are often designated or restricted for specific purposes or “appeals” such as restoration works, and can vary substantially from one year to the next
Tax recoverable on Gift Aid comprises (a) tax refunded under the Gift Aid scheme plus (b) Gift Aid allowed under the Small Donations scheme including gifts analogous to “loose plate collections”. .
Recurring grants comprises the grant from the St Pancras Church Lands Trust: see the Financial Review above and Notes on the Churchwardens Fund on page 11.
The income of the shop , fund raising events and lettings is described in the Financial Review above
The ‘restricted’ column in interest principally includes interest on our Millfield grant.
Fees in 2020 include funeral fees.
EXPENDITURE
Shop expenses were mainly rent (£2,100 in 2021). Council rates (which would be around £600 in a full tax year) were again nil, due to a Government moratorium. With the end of this moratorium, losses would be in the range of £1,400 per annum unless there is an improvement in sales activity.
Diocesan Common Fund: see Financial Review on pages 3 & 4.
Parsonage house in 2021 is the maintenance of the vicarage burglar alarm and its water rates.
Pilgrimage, study & parish events . The main item is usually the cost of the annual pilgrimage to the Walsingham shrine but this was cancelled this year. Each pilgrim meets their own cost but the church pays for the cost of the clergy and any shortfall in overall costs.
St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total
Unrestricted Designated Restricted Endowment This year Last year
Upkeep of services includes communion wine, candles, service books, service sheets and publicity.
Music is the Music Director’s and cantors’ fees and other spending on music.
The majority of spending on flowers in 2020 (£427) was met by donations
The cost of utilities was stable in 2021.
Church running other comprises mainly hospitality, kitchen and toilet materials, the website fee and the water rate.
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St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total Unrestricted Designated Restricted Endowment This year Last year
Notes on Balance Sheet and ‘Funds’, and accounting policies
Balance Sheet
Fixed assets
The Anne Barnett Fund endowment is the capital given by the church’s founder to provide income for ‘repairs or improvement’ (her Will Oct 1853) or for ‘making any necessary additions’ to the church, excluding the purchase of additional land (the second of two Codicils of Nov 1854). The amount has been estimated as the £1,000 in the Will plus £1,000 as the maximum likely amount resultant from the Codicil (which added £200 plus any legacies which lapsed before Anne Barnett’s death four years later).
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St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total
Unrestricted Designated Restricted Endowment This year Last year
Consecrated land and beneficed property and any improvements to property, fixtures and fittings are excluded from the accounts as assets by the Charities Act. The insurance valuation of the church building and contents is currently £16.8mn. Movable church furnishings are vested in the churchwardens; they cannot be disposed of without a Faculty (legal permission from the Diocese). Other items which are not fixtures and fittings coming into the possession of the PCC valued over £1,000 will normally be written off in equal parts over four years ; those valued at £1,000 or less will be written off in the period in which they were acquired.
Current assets
During 2020 we had a chequing account at HSBC, and a PayPal account (enabling people to pay to the church via the website and churchwardens to make small purchases of maintenance materials online). Our aim is to keep only sufficient balances for working purposes in the HSBC account, as the interest rate is zero. Additionally, we have 4 instant-access accounts in the CBF (Church of England Central Board of Finance) Deposit Fund managed by CCLA Investment Management. The gross interest rate paid by the CBF Deposit Fund is related to short-term market rates and accordingly has been negligible. HSBC has begun to charge a £5 monthly fee and 40p per cheque processed. As HSBC does not offer us online payment potential we will be looking to change current accounts to a bank that can facilitate online payments.
The Anne Barnett £2,000 endowment Fund (see 'Funds' below) and accrued interest is held in a number of accounts including Anne Barnett account at CCLA (shown on the balance sheet as a negative figure).
Income in cash and cheques (collections, donations, income from the shop, etc) is held in the ‘ Cashbook ’ until banking, or cash disbursement (mainly into the Music Float) takes place. Other cash amounts (the Flowers and Music Floats ) are held by individuals who maintain cashbooks for providing flowers in the church and paying singers.
Accounts receivable at the end of 2021 is an estimated provision for a gift-aid claim to be submitted to HMRC for donations received in the year.
Liabilities
Accounts payable are cheques drawn in 2021 but not cleared by 31[st] December.
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St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total
Unrestricted Designated Restricted Endowment This year Last year
Funds’: analysis of Net Assets by function
Restricted funds can be used only for a specified purpose. Designated funds are amounts allocated by the PCC for a specific purpose; this allocation is not binding and can be changed by the PCC. Endowment funds are investments held in trust so that the PCC can benefit from the interest but cannot spend the capital.
General Fund holds assets that are not subject to any restriction or designation.
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St Anne's Highgate - 1130501
Analysis of income and expenditure Selected period: 01 January 2021 to 31 December 2021
Total
Unrestricted Designated Restricted Endowment This year Last year
Restoration Fund comprises a donation (plus Gift Aid) restricted for repair of the chancel mural and other amounts designated by the PCC for restoration (at end 2016 essentially completion of the repairs to the vestry and preparatory stabilisation of the mural beyond that financed by the restricted donation).
Anne Barnett Fund was set up by the church’s founder so that the interest generated could cover the cost of church maintenance. The amount in the Fund comprises the endowment capital (estimated at £2,000): ~~a~~ nd net accumulated earnings on it (which, like the Restoration Fund, are usable for repairs and improvements). The balance of those earnings fell to zero in 2016, being used in the large repairs then.
Churchwardens Fund receives the regular grants from the St Pancras Church Lands Trust (Registered Charity 212006). Under the terms of the Trust (the St Pancras Ecclesiastical Regulation Act 1868, as amended by the scheme effective 24 March 1965) the use of the grants is restricted to repair of the church and the expenses of performing divine worship (and was interpreted in a note written by a Trustee in April 2007, as excluding use for donations to charity or payment of clergy stipends). If too much qualifying expenditure is allocated to this Fund during the year, a transfer is made from the General Fund to bring the Churchwardens Fund back to zero at the year-end, rather than individual items being reclassified out of this Fund in retrospect.
Worship Fund holds a donation to support worship and the upkeep of services.
Lunches Fund comprises the expenditure on the Community Lunches and its financing, see page 8 ‘lunches’ and the last para of the Financial Review on page 4.. but is no longer used
Millfield Fund holds the St Pancras Foundation grant described in the Financial Review and the interest on it net of expenditure from it. The Fund is distributed over several accounts in the Balance Sheet, not only those with ‘Millfield’ in their title.
Development Fund holds a donation restricted for the Development Plan.
Bell Fund is a restricted fund for maintenance of the bells. After substantial work on bells and belfry over recent years the fund ended last year exhausted.
Flower Fund is for the floral decoration of the church. When spending on flowers is not met by financial donations for flowers (including the tax recoverable on Gift Aided donations), the deficit is made up by transfers from the General Fund.
Accounting Policies
These accounts have been prepared in accordance with the Church of England’s Accounting Regulations, applicable accounting standards and the Charities Statement of Recommended Practice (‘SORP’). Receipts and payments are in principle entered on an ‘ accruals ’ basis (see notes on ‘Accounts receivable’ and ‘Accounts payable’ above).
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