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2020-12-31-accounts

2020 REPORT AND ACCOUNTS

FOR

THE PAROCHIAL CHURCH COUNCIL

OF

ST. JAMES THE GREAT

THORLEY

REGISTERED CHARITY NO. 1130506

Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Registered Charity No: 1130506 Parochial Church Council (“PCC”) Gaz Tracey (Rector) (from July 2020) Members (Trustees): Ruth Atkinson (Curate until January 2020) Sue Carr (Churchwarden) Chris Carr (Reader) Katharine Roper (Reader) Kirsty Pettinger (PCC until 2022 and Treasurer) Paul Martin (PCC until 2021 and PCC Secretary) John Wiseman (PCC until 2020) Mary Bramley (PCC until 2021) Robbie Ward-Booth (PCC until 2021) Clive Weir (PCC until 2022) Alison Somers (PCC until 2022) Gill Blair-Park (PCC until 2023) Debbie Hoy (PCC until 2023) Philippa Roy-Chowdhury (PCC until 2023) Becky Miles (Deanery until 2020) Clive Hayball (Deanery until 2023) Sylvia Barrows (PCC until 2020) (Deanery until 2023) PCC Secretary Paul Martin Principal Office: Church Office The St Barnabas Centre Church Lane Thorley Bishop's Stortford CM23 4BE Bankers: Barclays Bank Plc. 10 North Street Bishop's Stortford CM23 2LH Independent Examiners: Helena Wilkinson Price Bailey LLP Causeway House 1 Dane Street Bishop's Stortford CM23 3BT Insurers: EIO (Ecclesiastical Insurance Office) Plc

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Aims and Purposes of the PCC

Thorley Parochial Church Council (PCC) works with the incumbent in promoting the ecclesiastical parish in association with the mission of the Church as laid down in the church’s Mission Action Plan, which embraces pastoral, evangelistic, social and ecumenical initiatives. The PCC is responsible for the maintenance and use of the buildings with which we are blessed.

Overview, Objectives and Activities

The PCC is committed to reaching as many people as possible through worship at St. James and via its outreach opportunities throughout the year.

2020 has been a year like no other in recent memory at St James. The global COVID-19 pandemic changed the face of “normal” life in the parish, meaning that difficult decisions had to be made in light of the national and diocesan restrictions imposed on the opening and use of church buildings not only for worship services, occasional offices and private prayer, but also for all other aspects of the life of the church including maintenance, office/administrative provision, social events and the letting of our buildings to local organisations. etc.

In January 2020, we said “farewell” to Revd. Ruth Atkinson (Curate), who had held the fort during the illness and following the subsequent resignation, of our former Rector (Revd. Chris Orme). Then in February 2020, after a third round of interviews, we were pleased to announce to the church family that the Revd. Gaz Tracey had accepted the post of Rector of St. James and he was inducted at the end of July 2020 as we welcomed him and his family to Bishop’s Stortford. This has heralded the start of a new era in the parish and we are grateful for the injection of new enthusiasm and energy not only into the day-to-day life of St. James, but also into the teaching and prayer life of the church. Having lived through unsettling times since July 2017, we are looking forward to his stabilising influence as we move forward together.

For the first half of 2020, the workload was as outlined in last year’s report, with the administrative and premises staff, plus the Churchwardens and an army of volunteers, stepping up to the plate and making sure that everyday matters related to the running of the church, were upheld. During the months from January to July, services continued initially in person, but then online from the end of March and were led by our lay ministers (Readers) plus clergy from across the deanery. The advent of “lockdown” from the latter part of March 2020, meant that the church buildings had to be closed and all services were then streamed online. Thanks to our excellent technical team, services have continued to be offered every week, with the re-appearance over the late summer and autumn, of a face-to-face 9am service (in addition to the 10.30am online service), before, once again, lockdown in November forced this to be abandoned for the time being, returning to online services only.

From July 2020, once the initial restrictions had been lifted a little, the church has been opened twice a week reducing to once per week from November) for private prayer with stewards in attendance to ensure that all protective measures remained in place and were adhered to by those using the building. This has continued and has been a source of solace for people in need of peace and spiritual comfort. All church meetings have been conducted using Zoom or GoToMeetings and attendance and participation has been healthy.

Throughout the year we have continued to engage with the community through a variety of online activities and as we approached the end of the year, determined to get across the message that Christmas had not been cancelled, numerous innovative events were planned by Revd. Tracey which were carried out to the delight of the church family, parish residents and those from further afield – while maintaining a minimum COVID-19 risk.

It has been a time of unity and spiritual growth, with people being added to our number and friends from overseas able to join us by the use of technology. Online social events have taken place such as a concert, quiz nights, games evenings etc. All have been well attended and we hope that these have helped to address the needs of the church

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

family and those in the wider community to “meet”, albeit virtually, and re-connect with friends who we may not have seen for many months.

Small groups have continued to take responsibility for strategic planning and management. Our Mission Action Planning Group has continued to meet regularly and to maintain progress with our mission to ‘be Jesus to our community, the disadvantaged and the developing world.’. We are very grateful to all those who carry out voluntary duties, both within worship services and in the day-to-day maintenance of our Church and its building.

The fabric of the church and our other buildings has been well-maintained by our premises staff and volunteers. As mentioned in last year’s report, local woodpeckers had caused damage to the church tower and work has now begun to rectify this damage. We are grateful to the Friends of St. James for their support in raising the funds to undertake the work. Other minor works have been carried out including remedial work to the lightning protection system and we are awaiting the repair of 2 worn steps in the tower. Unfortunately, the current lockdown has inevitably delayed the completion of such work.

A structural survey of the church building carried out in the spring of 2020, revealed nothing untoward, only highlighted the need to make good some external wear and tear and cracks, but these cannot be done until after a period of dry weather to minimise the likelihood of further opening of the cracks. Thus, the work is scheduled to take place in the autumn of 2021.

Our monthly Café has now evolved into a weekly online coffee morning which continues to flourish and is well attended. Other activities have included weekly online home group meetings, a 3-day summer outdoor flower festival; a 2-day Christmas tree festival; online youth event; online Mothers Union meetings and prayer meetings, plus a new initiative – Fill the Gap – designed to meet the nutritional needs of impoverished children during the school holidays, when their school meals are not provided.

Buildings

The PCC has responsibility for five buildings:

The Church Centre Complex, Church Lane, Thorley

The Thorley Christian Centre (TCC), Vicerons Place, Thorley

In addition, the PCC has joint responsibility with the Diocese of St Albans for a further 2 buildings:

Ensuring our work delivers our aims

We review our aims, objectives and outcomes each year. This review looks at the success of each key activity and the benefits they have brought to those groups of people we help and support. The review also enables us to ensure our aim, objectives and activities remain focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the PCC considers how planned activities will contribute to aims and objectives they have set.

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Structure, governance and management

At the Annual Meeting of Parishioners (AMP), usually held in April/May but held in October this year as part of our response to the Covid-19 pandemic, all those living in the parish or who are on the Electoral Roll of St James the Great, are entitled to elect two Churchwardens who are elected annually and can hold office for six successive years, following which they must step down for a period of 2 years in accordance with the Churchwardens Measure (2001, No. 1) and agreed by resolution of the AMP in 2020.

The PCC of St James the Great is a registered charity and all members, including ex-officio and co-opted members are Trustees named on the Charity Commission register.

The structure and governance of the PCC is laid out in the Church Representation Rules (2020) and is made up of several categories of members as follows:

Other members of the congregation may be co-opted as required, but not exceeding in number one fifth of the elected lay members, or two persons whichever shall be the greater.

The Annual Parochial Church Meeting (APCM) elects the lay and deanery representatives. Voting at the APCM is restricted to members on the Electoral Roll only. Elected lay representatives serve for a three-year term with onethird standing down each year and one third being elected or re-elected. Members must stand down after two consecutive 3-year terms and cannot be re-elected for at least one year. Deanery Synod representatives are elected every three years and remain in office for the whole term, but should any representative relinquish their position, a replacement will be elected at the next APCM for the remainder of the three-year term.

The Rector (as Chair) is responsible for the induction of new members explaining their responsibilities and duties, as well as the administrative procedures and philosophical and theological approach of the PCC. All new members receive copies of the previous year’s annual report and accounts. The PCC Secretary advises members of their duties as charity Trustees. In the absence of the Rector, this responsibility falls to the Churchwardens.

At the first meeting of the PCC following the APCM, the lay Chair (acting in the absence of the Rector) and PCC representatives for the Standing Committee, are appointed. Two members are also appointed to the Friends of St James’ Committee as required by the Friends’ constitution.

The PCC Treasurer together with the Chair of the Finance Committee, produce the quarterly and annual accounts and budgets.

Each year the PCC reviews the risks that the Church faces. To date these have mainly related to the maintenance of St. James church, which English Heritage has classified as a Grade One listed building, the SBC, which is a Grade Two listed building, as well as the other buildings managed by the PCC. These risks have been ameliorated by a regular programme of inspection and maintenance as well as compliance with any recommendations made by the Diocesan Architect at his Quinquennial Inspections. There are also minor areas of risk relating to employing staff, which have been covered by appropriate procedures, policies and insurance. For all activities where it is required, Disclosure and Barring Service (DBS) checks have been carried out on each responsible person and others working with children, young people and vulnerable adults, in accordance with the recommendations of the House of Bishops and diocesan policy. The PCC is also aware of the risks associated with making charitable grants and generally controls this by detailed local knowledge of possible beneficiaries. Payments to other charities represent a relatively small part of the PCC’s annual expenditure.

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

The PCC operates in association with a number of sub-committees that report to the PCC. These include:

Achievements and performance

Worship & Prayer

Total Sunday services since lockdown in March 2020 52
Weddings and blessings 0
Funerals and interments 13
On a usual Sunday attendance - adults 143
On a usual Sunday attendance - children 19
Electoral roll 151

Further regular worship has taken place in our homegroups (including through lockdown), whereas Little Worship and a Fresh Expression of church continued until lockdown prevented face-to-face meeting. These have now been suspended until government and diocesan COVID-19 restrictions are lifted.

Since lockdown other groups including the music fellowship, Mothers Union, Home Group leaders’ meetings have continued to take place via online platforms. With the temporary suspension of face-to-face church services in lockdown, our monthly Sunday evening service is currently not being offered.

Regular Home Group leaders’ meetings have taken place, convened and led by the two Home Group co-ordinators. Many church members are now either full members or allocated as associate members to a homegroup. They are invited to social events and the homegroups keep in touch with them. This maintains contact, aids communication and pastoral care in the church.

Children and Youth ministry

The early stages of 2020 proved a challenging time for our youth and children’s work. It took a number of months for leaders, families and children/young people to come to terms with virtual forms of meeting.

Since August, upon the arrival of our new Rector, we included more provision for children and families in our weekly virtual services. We also relaunched both our youth ministry and children’s ministry at the end of August – before continuing with in-person meetings (according to strict COVID-19 measure) in September.

Our Sunday morning children’s ministry, PowerHouse, has gained encouraging momentum and has managed to innovate and adapt to forge a course through the lockdowns and restrictions at the end of 2020.

Our youthwork received fresh drive with renewed leadership in the latter half of 2020. Like many, it was difficult to maintain with the changeable restrictions on meeting in person that we faced, but we are hopeful of further development in 2021.

Our youth and children, and their leaders, planned and delivered our virtual Crib Service on Christmas Eve that was seen online over 700 times.

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Parish Breakfast

The Parish Breakfast, popular with church family members from both congregations and co-ordinated by the Mothers’ Union, has had to be suspended during the lockdown, but it is anticipated that when we are able to reconvene in person once the current pandemic has been brought under control, these “get togethers” on a Sunday morning, will be resumed.

A Warm Welcome for All

When the church and St. Barnabas Centre are open for public worship, the Welcoming team has a pastoral responsibility on a Sunday morning to offer a warm welcome to all who come through our doors and offers a listening ear, especially to newcomers.

Pastoral Care and Prayer Ministry

The members of Pastoral Care team continue to liaise with each other in order to identify the needs of specific parishioners, however home visiting cannot currently be undertaken due to COVID-19 restrictions. The Prayer Ministry team remained available for personal prayer after every 10:30 am service until the closure of churches was introduced in lockdown. However, this is still available via a confidential online facility for anyone seeking prayer support during the online Sunday morning service.

Use and Development of Buildings

In the early part of 2020, the church building was open seven days a week to the general public as a quiet place for prayer and reflection. The Thorley Christian Centre (TCC), the St. Barnabas Centre (SBC) and the Emmaus Centre (EC) continued to be used by a wide variety of people, from Pre-School and Rainbows groups to a senior citizens club and the Isabel Hospice, as well as by the parish family, Associated Board music exams and charities, until lockdown when all church buildings were closed.

However, over the summer of 2020, we were able to start welcoming regular lessees back to our buildings but in November we were required to close them again due to the 2[nd] and subsequent 3[rd] lockdowns. The TCC currently remains open to the Pre-school.

The Friends of St James continue to raise funds for work needed in the Church and curtilage area. The PCC is very grateful to the ‘Friends’ and all those who support it.

The St. Barnabas Centre has been well used by community groups such as Isabel Hospice, U3A etc. It is also hired privately for funeral receptions and small celebrations. We anticipate being able to resume offering this and all our buildings for hire again in the future

Mission and Evangelism

Several members of the St James church family remain actively involved as Street Pastors and in Stortford Healing on the Streets. Understandably, these outreach activities are currently suspended, but it is hoped that they will resume when restrictions are lifted. We also have our long-standing commitment as teachers or helpers for Holiday Bible Week, but the same applies to this town-wide event. The tradition of serving of refreshments from the Church Room on Sunday afternoons did not take place last summer however an outdoor Festival of Flowers & Music was organised by the PCC to raise funds and was highly successful.

Fairtrade is one of our core principles and the shop in the St Barnabas Centre continued to do well until the advent of lockdown, when sales had to be suspended. The shop is in effect a branch operation of the Mildmay Mission that provides quality HIV/AIDS care, treatment, training and education in Uganda and all profits go to support the Mission. We managed to open the shop in the run up to Advent and Christmas this year. We anticipate that the shop will re-open once restrictions are lifted.

Shared Ministry and Ecumenical Relationships

The PCC is committed to the very strong Churches Together in Bishop’s Stortford and has three representatives on the forum.

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Where possible, our clergy attend the monthly ecumenical Bishop’s Stortford Ministers’ Fellowship meeting, monthly Bishop’s Stortford Church of England Clergy lunchtime meeting and the monthly ecumenical ministers’ prayer breakfast (although these meetings have not taken place since March 2020). The Rector also attends Deanery Chapter meetings and Deanery Synod meetings, albeit currently being convened online.

Three members of the PCC also sit on the Deanery Synod, providing the PCC with an important link between the parish and the wider structures of the church both locally and nationally.

We also maintain our association with All Nations Christian College where in the past we have had a number of students worshipping with us. It is hoped that we shall be able to welcome their students again in the future, but this has been deferred for the time being and will be considered by the Rector at the appropriate time.

Our Vision for 2021 and beyond

Our Mission Action Plan (MAP), approved at the end of 2017 is currently under review. Following the arrival of Revd. Tracey, the members of the Mission Action Plan group together with the Rector, have met regularly online and have been re-visiting the MAP to ensure that it reflects the thoughts and plans that Revd. Tracey has brought to Thorley. Our Mission is to be Jesus to our community, the disadvantaged and the developing world.

Financial review

God has been especially gracious this year. We finished the year with a surplus on unrestricted funds of over £4,000. Thank you, Lord! This is an amazing outcome, but is largely due to two one-off lump sums, without which we would have made a deficit on the year of just over £11,000.

Our planned giving and sundry donations held up well, thanks to the generosity of the church family, the tenacity of the office team and the hard work of those who organised our Flower Festival. Donations for use of our church premises were down by 60% causing a significant shortfall in our regular income. However, the running expenses for our buildings were also significantly reduced, through limited usage and careful management, whilst repairs to our church building were kindly funded by the Friends of St James. A generous legacy of £5,000, together with a large VAT rebate from the barn roof repairs of around £10,500 enabled a surplus on unrestricted funds for the year of over £4,000.

Our annual Parish Share of £87,865 has been paid in full and our cash giving to outreach and good causes has been maintained, although sadly local charities have been unable to take advantage of reduced rental for our church buildings, for much of the year.

We end 2020 in a strong position, but are mindful that 2021 will be equally challenging. As always, we depend on the faithful support of the church family and the abundant provision of God.

Reserves

The task of the PCC is to carefully manage the funds that are available to it. Historically, our reserves target has been to hold at least 2 months of annual expenditure in reserve in order to maintain the efficient running of the church and maintain our active mission and ministry, should income be delayed. However, given the uncertainties caused by the global pandemic at the current time, we have chosen to revise that target. We have adopted a new reserves policy with a target of holding three months of costs, based on an average of the unrestricted expenditure for the last three years, which this year amounts to £206,227.

At the end of the year, after transfers between funds, our unrestricted, undesignated funds amount to £76,260 (2019: £77,878). This means that our reserves represent just over 4.4 months’ worth of annual expenditure. In addition, we hold £9,980 (2019: £12,162) of restricted funds and £25,000 (2019: £25,000) of funds designated for the repair and maintenance of our buildings.

Our budget for 2021 shows a deficit of about £12,000. If the results for 2021 are in line with the budget, our reserves after transfers between funds would fall to just over £61,000, which would represent about 3.5 months of annual expenditure.

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Covid-19

The Covid-19 outbreak in the early part of 2020 reached pandemic level in March and has significantly affected our income for the year. However, through careful management our costs have also been significantly reduced. With the continued closure of our buildings for public worship during the first months of 2021, and the fact that many community organisations are not able to utilise our premises during the pandemic, we are conscious that income for 2021 will also be affected. Nevertheless, with continued careful management, in financial terms, we are hopeful for the future. However, the work of the Church continues with worship and teaching on-line with over 100 people using this facility each week, and many more watching on other social media channels after the day. There is also a weekly newsletter and a closed Facebook page to keep people informed and encouraged. We are aware that advice and directions from both the Government and the Diocese are changing rapidly and on a regular basis. We will continue to keep all our members informed.

Final comment

With prayer and God's guidance, the PCC and the congregation look forward to the challenges we will face during 2021.

On behalf of the Parochial Church Council

G P Tracey (Chair)

Kirsty Pettinger (Lay member)

Date:

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Statement of financial activities

Note
Income and endowments from:
Donations and grants
2(a)
Other voluntary income
2(b)
Income from charitable and ancillary trading:
2(c)
Income from investments
2(d)
Total income and endowments
Expenditure on:
Grants
3(a)
Charitable activities
3(b)
Fund-raising and publicity
3(c)
Total expenditure
Net expenditure/income for the year, being net
movement in funds
Transfer between funds
Total funds brought forward at 1 January 2020
Total funds carried forward at 31 December 2020		 Unrestricted
Restricted
Total Funds
Funds
Funds
2020
2019
£
£
£
£
140,889
14,673
155,562
157,718
29,013
-
29,013
68,067
4,006
-
4,006
6,082
497
-
497
863
174,405
14,673
189,078
232,730
1,821
3,397
5,218
6,656
177,227
2,901
180,128
256,808
1,532
-
1,532
3,522
180,580
6,298
186,878
266,986
(6,175)
10,557
8,375
(10,557)
2,200
-
(34,256)
-
2,661,595
12,162
2,673,757
2,708,013
2,665,977
9,980
2,675,957
2,673,757

All income and expenditure have arisen from continuing activities.

The notes to the accounts are shown on pages 11 to 20 and form part of these financial statements.

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Balance Sheet
Note
Fixed Assets
Tangible fixed assets
5
Current Assets
Debtors
6
Cash at bank and in hand
Liabilities: Amounts Falling Due Within One Year
7
Net Current Assets
Total Assets Less Current Liabilities
Liabilities: Amounts Falling Due After More Than One Year
8
Net Assets
Funds
9
Unrestricted
Undesignated
Designated
Revaluation reserve
Total Unrestricted
Restricted
Total Funds		 2020
2019
£
£
2,578,038
2,577,048
2,578,038
2,577,048
9,522
9,262
108,031
108,786
117,553
118,048
10,384
9,089
107,169
108,959
2,685,207
2,686,007
9,250
12,250
2,675,957
2,673,757
76,260
77,878
2,484,776
2,478,776
104,941
104,941
2,665,977
2,661,595
9,980
12,162
2,675,957
2,673,757

The financial statements were approved by the Parochial Church Council on and signed on its behalf by:

G P Tracey

(Chair)

Kirsty Pettinger

(Lay member)

The notes on pages 11 to 20 form part of these accounts.

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

1 Accounting policies

Thorley PCC is a Parochial Church Council in England. The address of the registered office is given in the charity information on page 1 of these financial statements.

Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance 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) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

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

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Like many charities at this time the charity is dealing with the impacts of Covid-19. Although income has been impacted through the closure of church buildings in response to the pandemic, the trustees have considered the level of current reserves and believe reserves are sufficient for activities to be maintained for 12 months. A detailed commentary on its impact is detailed in the Trustees report on page 7.

Judgements and key sources of estimation uncertainty

In the application of the Charity’s accounting policies, which are described above, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates. The Trustees do not consider that there are any critical judgments or sources of estimation uncertainty in the financial statements.

Funds

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

Designated funds are unrestricted funds that due to their nature are not readily realisable and cannot therefore be considered to be general funds available for PCC ordinary purposes or have been designated for a particular purpose. The PCC’s fixed assets are included in such designated funds.

Restricted funds represent a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest, and b) donations or grants received for a specific object or

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. The PCC does not usually invest separately for each fund. Where there is no separate investment, interest is apportioned to individual funds on an average balance basis.

Endowment funds are funds, the capital of which must be maintained; only income arising from investment of the endowment may be used either as restricted or unrestricted funds depending upon the purpose for which the endowment was established. The PCC’s only Endowment Fund is the Patten Bequest, held by the St Albans Diocesan Board of Finance and provides an income to be used for the upkeep of the Church.

Income recognition

Planned giving, collections and donations are recognised when received. Tax refunds are recognised when receivable. Grants and Legacies are accounted for when the PCC is legally entitled to the amounts due. All other income is recognised when it is receivable. All income is accounted for gross.

Expenditure recognition

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. The diocesan parish share is accounted for when due. Amounts received specifically for mission are dealt with as restricted funds. All other expenditure, including support costs are generally recognised when incurred and accounted for gross.

Expenditure is stated gross of irrecoverable VAT and has been classified under headings that aggregate all costs related to the category.

Fixed assets

Consecrated and benefice property is not included in the accounts by section 10 of the Charities Act 2011.

Moveable church furnishings held by the Vicar and Churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the Church’s inventory, which can be inspected (at any reasonable time). For anything acquired prior to 2000 there is insufficient cost information available and therefore such assets are not valued in the financial statements.

Fixtures, fittings and equipment are capitalised at cost. Depreciation is calculated to write off the capitalised cost over an estimated useful life of 3 years.

The trustees have concluded that all land and buildings are held for the PCC’s use and as such none are investment properties.

The PCC has applied the transitional arrangements of section 35 of FRS 102 and measured its freehold property at deemed cost at the date of transition, being 1 January 2015. No depreciation is provided on buildings as the currently estimated residual value of the properties is not less than their carrying value and the remaining useful life of these assets currently exceeds 50 years, so that any depreciation charges would be immaterial. An impairment review is carried out at each year end and any resultant loss identified included in expenditure for the year.

Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their fair value as at the balance sheet date. All financial instruments of the charity are measured at cost with the exception of the fixed asset land and buildings which are held at their revalued carrying amount. The value of land and buildings as well as their original cost is stated in note 5.

Financial assets include the bank balances, trade debtors and other debtors but exclude prepayments and taxation.

Financial liabilities include trade creditors, other creditors, accruals and deferred income but exclude social

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Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

security and other taxes due.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income is included at the best estimate of the amounts receivable at the balance sheet date.

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition, opening of the deposit or similar account.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. Accrued expenditure is included at the best estimate of the amounts payable at the balance sheet date, after allowing for any trade discounts due.

Pensions

The Charity provides a defined contribution pension scheme, whereby the Charity and its staff each fund the scheme, managed by a third-party provider, the assets of which are held by the provider separately from the assets of the Charity. The pension charge in the financial statements represents the amounts payable by the Charity to the fund in respect of the year.

Taxation

The charity is exempt from corporation tax on its income applied for charitable activities.

13

Thorley Parochial Church Council Annual Report and Accounts for the year ended

31st December 2020

2 Income

2(a)
Donations and grants:
Planned giving
Income tax recoverable
Legacy
CAF Vouchers
Friends of St James contributions to church repair
Listed places of worship grant scheme
Sundry donations/Stewardship campaign
2(b)
Other voluntary income:
Donations for use of Church premises
Fetes, bazaars, other fund-raising events
2(c)
Income from charitable and ancillary trading:
PCC and wedding fees
2(d)
Income from Investments:
Bank interest
TOTAL INCOME		 Unrestricted
Restricted
Total Funds
Funds
Funds
2020
2019
£
£
£
£
101,516
-
101,516
104,211
26,000
5,000
-
-
26,000
5,000
29,261
-
1,110
-
-
-
1,110
-
1,440
200
-
10,668
10,668
2,071
7,263
4,005
11,268
20,535
140,889
14,673
155,562
157,718
25,261
-
25,261
59,598
3,752
-
3,572
8,469
29,013
-
29,013
68,067
4,006
-
4,006
6,082
4,006
-
4,006
6,082
497
-
497
863
174,405
14,673
189,078
232,730

2 2019 Income Comparative

2(a)
Donations and grants:
Planned giving
Income tax recoverable
Legacy
CAF Vouchers
Friends of St James contributions to church repair
Listed places of worship grant scheme
Sundry donations/Stewardship campaign
2(b)
Other voluntary income:
Donations for use of Church premises
Fetes, bazaars, other fund-raising events
2(c)
Income from charitable and ancillary trading:
PCC and wedding fees
2(d)
Income from Investments:
Bank interest
TOTAL INCOME		 Unrestricted
Restricted
Total Funds
Funds
Funds
2019
£
£
£
104,211
-
104,211
29,261
-
-
-
29,261
-
1,440
-
-
200
1,440
200
-
2,071
2,071
11,955
8,580
20,535		 Unrestricted
Restricted
Total Funds
Funds
Funds
2019
£
£
£
104,211
-
104,211
29,261
-
-
-
29,261
-
1,440
-
-
200
1,440
200
-
2,071
2,071
11,955
8,580
20,535
146,867
10,851
157,718
59,598
-
59,598
-
8,469
8,469
59,598
8,469
68,067
6,082
-
6,082
6,082
-
6,082
863
-		 863
213,410
19,320
232,730

14

Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

3 Expenditure

3(a)
3(b)
3(c)
3(d)		 Grants
Other giving
Outreach
Charitable activities
Ministry: diocesan quota
Clergy expenses
Ministry: curate expenses
Upkeep of Church Services
Powerhouse, youth groups & fellowship groups
Cost of the music fellowship
Rectory and Parish House repairs
Parish House – loan interest
Church running expenses and repairs
St Barnabas Centre running expenses
Emmaus Centre running expenses
Thorley Christian Centre running expenses & repairs
Elmbrook Drive running expenses
Support costs 3(d)
Fund-raising and publicity
Advertising for new Rector
Costs of fetes and other fund-raising events
TOTAL EXPENDITURE
Support costs
Staff costs (Note 4)
Administration and Office supplies
Accountancy
Website maintenance
Telephone and Miscellaneous
Depreciation		 Unrestricted
Restricted
Total Funds
Funds
Funds
2020
2019
£
£
£
£
571
1,280
1,851
615
1,250
2,117
3,367
6,041
1,821
3,397
5,218
6,656
87,865
-
87,865
94,704
1,357
-
1,357
-
997
-
997
1,484
3,670
-
3,670
2,681
417
-
417
557
107
-
107
170
1,152
-
1,152
2,082
237
-
237
295
5,139
-
5,139
8,693
13,795
1,961
15,756
79,903
3,061
-
3,061
4,991
6,540
-
6,540
9,027
-
-
-
-
52,890
940
53,830
52,221
177,227
2,901
180,128
256,808
-
1,532
-
-
-
1,532
1,210
2,312
1,532
-
1,532
3,522
180,580
6,298
186,878
266,986
41,508
-
41,508
40,143
4,827
940
5,767
5,359
3,070
-
3,070
1,880
1,041
-
1,041
1,025
1,835
-
1,835
3,573
609
-
609
241
52,890
940
53,830
52,221

15

Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

3 2019 Expenditure Comparative

3(a)
3(b)
3(c)
3(d)
4		 Grants
Tithing
Outreach
Charitable activities
Ministry: diocesan quota
Clergy expenses
Ministry: curate expenses
Upkeep of Church Services
Powerhouse, youth groups & fellowship groups
Cost of the music fellowship
Rectory and Parish House repairs
Parish House – loan interest
Church running expenses and repairs
St Barnabas Centre running expenses
Emmaus Centre running expenses
Thorley Christian Centre running expenses & repairs
Elmbrook Drive running expenses
Support costs 3(d)
Fund-raising and publicity
Costs of fetes and other fund-raising events
TOTAL EXPENDITURE
Support costs
Staff costs (Note 4)
Administration and Office supplies
Accountancy
Website maintenance
Telephone and Miscellaneous
Depreciation
Staff Costs
Wages and salaries
Pension costs		 Unrestricted
Restricted
Total Funds
Funds
Funds
2019
£
£
£
-
615
615
2,075
3,966
6,041
2,075
4,581
6,656
94,704
-
94,704
-
-
-
1,484
-
1,484
2,681
-
2,681
557
-
557
170
-
170
2,082
-
2,082
295
-
295
8,693
-
8,693
43,829
36,074
79,903
4,991
-
4,991
9,027
-
9,027
-
-
-
50,960
1,261
52,221
219,473
37,335
256,808
1,210
54
-
2,258
1,210
2,312
1,264
2,258
3,522
222,812
44,174
266,986
40,143
-
40,143
4,098
1,261
5,359
1,880
-
1,880
1,025
-
1,025
3,573
-
3,573
241
-
241
50,960
1,261
52,221
Unrestricted
Funds
£
Restricted
Funds
£
Total funds
2020
£
Total Funds
2019
£
40,711
-
40,711
39,622
797
-
797
521
41,508
-
41,508
40,143

During the year the charity employed an average of 3 employees (2019 - 3).

No employees received total employee benefits in excess of £60,000 (2019 - Nil).

16

Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

5 Fixed Assets

Tangible fixed assets
Historical
Cost
Freehold land and property owned by PCC
£
The St Barnabas Centre
1,920,000
The Emmaus Centre
461,526
The Thorley Christian Centre (10% PCC interest)
48,000
7 Elmbrook Drive (15.04% PCC interest)
42,500
Designated Funds
Fixtures, Fittings & Equipment (Unrestricted)
Cost brought forward
Additions
Disposals
Cost carried forward
Accumulated depreciation brought forward
Depreciation charge for the year
Depreciation eliminated on disposal
Accumulated depreciation carried forward
Net book value brought forward
Net book value carried forward
Total fixed assets		 2020
2019
£
£
1,989,927
1,989,927
478,335
478,335
49,748
49,748
58,957
58,957
2,576,967
2,576,967
2,576,967
2,576,967
762
2,151
1,599
-
-
(1,389)
2,361
762
681
1,829
609
241
-
(1,389)
1,290
681
81
322
1,071
81
2,578,038
2,577,048

The PCC owns two freehold buildings, the St Barnabas Centre and the Emmaus Centre both in Church Lane, Thorley. The Diocese owns the Thorley Christian Centre, Vicerons Place, Thorley Park, but would give 10% of the net proceeds of any sale to St James. The Parish House is a residential property owned with the Diocese. The PCC owns 15.04%.

The PCC has applied the transitional arrangements of section 35 of FRS 102 and measured its freehold property as noted above and used those valuations as its deemed cost at the date of transition, being 1 January 2015. Given the unique nature of the three Centres, the properties were valued based on the insurance value and their value in use. The Trustees resolved to adopt a market value for 7 Elmbrook Drive of £392,000 for the year ended 31 December 2015, meaning that the PCC’s share of the valuation increased.

6 Debtors

Accounts receivable
Income tax recoverable
Prepayments and accrued income		 2020
2019
£
£
-
90
6,794
6,492
2,728
2,680
9,522
9,262

17

Thorley Parochial Church Council Annual Report and Accounts for the year ended

31st December 2020

7 Liabilities: Amounts Falling Due Within One Year

Liabilities: Amounts Falling Due Within One Year
DBF/Vacancy Liability
Deposits held
Accrued expenses
Creditors for goods and services
Wedding fee / Funeral fee disbursements
Diocesan loan re 7 Elmbrook Drive (see note 8)		 2020
2019
£
£
1,229
606
101
101
2,520
1,880
2,814
3,173
720
329
3,000
3,000
10,384
9,089

8 Liabilities: Amounts Falling Due After More Than One Year

Liabilities: Amounts Falling Due After More Than One Year
Diocesan loan re 7 Elmbrook Drive 2020
2019
£
£
9,250
12,250
9,250
12,250

The loan is in relation to the Parish House. £3,000 is payable annually to the Diocese of St Albans.

9 Movement on Funds

Unrestricted funds:
General undesignated
Designated
Revaluation reserve
Restricted funds:
Church yard
Healing on the streets
Health & safety fund
Parish events
Other
Special collections
Windows fund
FOSJ church repair fund
Listed places of worship grant scheme
Beverley Cheeseman worship fund
Barn IT fund
Roof fund
Kitchen fund
Total funds		 At 1 January
2020
Income
Expenditure
Transfers
At 31
December 2020
£
£
£
£
77,878
174,405
180,580
4,557
76,260
2,478,776
-
-
6,000
2,484,776
104,941
-
-
-
104,941
2,661,595
174,405
180,580
10,557
2,665,977
486
150
-
-
636
314
-
-
-
314
106
-
-
-
106
702
2,125
2,117
-
710
18
-
-
-
18
123
1,280
1,280
-
123
-
-
-
-
-
79
-
-
-
79
2,416
10,668
1,961
11,123
-
1,135
450
-
-
1,585
1,137
-
940
-
197
(566)
-
-
(566)
-
6,212
-
-
-
6,212
12,162
14,673
6,298
10,557
9.980
2,673,757
189,078
186,878
-
2,675,957

18

Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Movement on Funds comparative

Unrestricted funds:
General undesignated
Designated
Revaluation reserve
Restricted funds:
Church yard
Healing on the streets
Health & safety fund
Parish events
Other
Special collections
Windows fund
FOSJ church repair fund
Listed places of worship grant
scheme
Beverley Cheeseman worship fund
Barn IT fund
Roof fund
Kitchen fund
Total funds		 At 1 January
2019
Income
Expenditure
At 31 December
2019
£
£
£
£
85,388
213,410
(220,920)
77,878
2,480,668
-
(1,892)
2,478,776
104,941
-
-
104,941
2,670,997
213,410
(222,812)
2,661,595
31
455
-
486
314
-
-
314
106
-
-
106
702
-
-
702
633
-
615
18
-
4,089
3,966
123
-
1,500
1,500
-
(121)
200
-
79
346
2,070
-
2,416
685
450
-
1,135
2,398
-
1,261
1,137
31,922
2,086
34,574
(566)
-
8,470
2,258
6,212
37,016
19,320
(44,174)
12,162
2,708,013
232,730
(266,986)
2,673,757

General unrestricted fund - The general unrestricted fund is used for PCC ordinary purposes.

Designated fund - The designated funds comprise the Freehold land and property, net of loans and the designated property repair fund (£25,000).

Restricted fund - The restricted funds represent donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund.

Revaluation reserve – The revaluation reserve is in relation to the property valuation undertaken on transition to FRS102.

10 Analysis of Net Assets by Fund

Fixed Assets
Net Current Assets
Long Term Liabilities
Fund balance		 Unrestricted
Funds
Designated
Funds
Revaluation
Reserve
Restricted
Funds
Total
£
£
£
£
£
1,071
2,472,026
104,941
-
2,578,038
75,189
25,000
-
9,980
110,169
-
(12,250)
-
-
(12,250)
76,260
2,484,776
104,941
9,980
2,675,957

19

Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Analysis of Net Assets by Fund (comparative)

Fixed Assets
Net Current Assets
Long Term Liabilities
Fund balance		 Unrestricted
Funds
Designated
Funds
Revaluation
Reserve
Restricted
Funds
Total
£
£
£
£
£
3,081
2,469,026
104,941
-
2,577,048
74,797
25,000
-
12,162
111,959
-
(15,250)
-
-
(15,250)
77,878
2,478,776
104,941
12,162
2,673,757

11 Independent Examination Fees

Accountancy expenditure includes £xxx fees paid to the Independent Examiners for carrying out the Independent Examination (2019 - £1,880).

12 Trustees Remuneration and Expenses

The trustees neither received nor waived any remuneration or benefits during the year (2019 - £Nil).

During the year 2 trustees (2019 - 1 trustee) had the following expenses paid for by the charity:

Travel
Training
Internet and communications
Other costs		 2020
2019
£
£
1,027
756
-
200
301
351
1,026
177
2,354
1,484

13 Related Party Transactions

During the year the charity paid £0 (2019: £899) to Safe UK, where trustee Paul Martin also acts as trustee. Safe UK supports rural communities in Malawi and was part of the church’s outreach projects.

[Payment to Street Pastors]

There were no other related party transactions in the year.

20

Thorley Parochial Church Council Annual Report and Accounts for the year ended 31st December 2020

Independent Examiner's Report to the Trustees of The Parochial Church Council of St. James The Great Thorley.

I report on the accounts of the charity for the year ended 31 December 2020 which are set out on pages 9 to 20.

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 Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA and ICAEW, which are two of the listed bodies.

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

  1. accounting records were not kept in respect of the charity as required by section 130 of the 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.

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.

Helena Wilkinson

Helena Wilkinson FCA Price Bailey LLP Causeway House 1 Dane Street Bishops Stortford Hertfordshire CM23 3BT

Date:

21