**St John & St Matthew South Hornchurch Annual Financial Statements of the Parochial Church Council (PCC) For the year ended 31[st] December 2020 (Including Independent Examination letter)** **Registered Charity number: 1130670** **Vicar (Chairperson of PCC): Rev Kevin Browning St John’s & St Matthew’s Vicarage South End Road Rainham RM13 7XT** **PCC Treasurer: David Rogers 26 Cavendish Crescent Hornchurch RM12 5NT** **Banks:** **Barclays Bank PLC 36/38 South Street Romford RM1 1RH and** **Central Board of Finance of the Church of England Senator House 85 Queen Victoria Street London EC4V 4ET** **Independent Auditor: Kevin Ogilvie Charity Bookkeeping and Examination Services 13 Evelyns Close Uxbridge UB8 3LR** _Page 1_ |**Contents:**|| |---|---| ||**Page**| |**Parochial Church Council (PCC) members**|**3**| |**Parochial Church Council (PCC) Objective**|**4**| |**Parochial Church Councils (PCC) governance**|**4**| |**Additional Financial responsibilities**|**4**| |**Accounting policies**|**5**| |**APCM PCC Treasurers Report 31st December 2020**|**5**| |**Notes on the Accounts**|**6**| |**Independent Examiner's Report**|**6**| |**Statement of Financial Activities**|**7**| |**Balance sheet**|**7**| |**Accounts approved by the PCC**|**8**| |**Fund movement by type**|**8**| |**Analysis of income and expenditure**|**9**| _Page 2_ ## **St John’s & St Matthew’s Church South Hornchurch** **Parochial Church Council (PCC) members who have served from January 2020 until the date this report was approved at APCM Thursday 20[th] May 2021.** **Incumbent** Rev Kevin Browning **Church Wardens** David Rogers Glenda Morton (end 11/10/20) Ray Akuaku (start 11/10/20) ## **Elected Members** Sheree Hambelton Rowena Lawrence (start 11/10/20) Freddie Bloss (start 11/10/20) Henry Peck (start 11/10/20) Gladys Azeh (start 11/10/20) Jim Morton (start 11/10/20) Paul Evangeli (start 11/10/20 end 06/03/21) Annette Newman (end 11/10/20) Chris Langford (end 11/10/20) Sumaiea Charalambous (end 11/10/20) Ray Akuaku (end 11/10/20) **Deanery Synod** Robert Jones Roger Fall (start 11/10/20) **Missioner ex-officio** Mark Gilmore (start 11/10/20) _Page 3_ ## **Parochial Church Council (PCC) Objective** Promoting in the ecclesiastical parish the whole mission of the church. ## **Parochial Church Councils (PCC) are governed by the provisions of the Synodical Government Measure 1969 and the Parochial Church Council (Powers) Measure 1956.** The Annual Parochial Church Meeting elects members of the Council. In addition, the ex-officio members include Clergy and Licensed Lay Workers, Churchwardens, representatives of the parish on the Deanery Synod and members of the Diocesan Synod and General Synod who are on the Electoral Roll of the parish. A PCC has the following main powers and responsibilities: - - To acquire, manage and administer property for ecclesiastical purposes affecting the parish (though the PCC itself cannot own property outright), - To frame an annual budget required for the work of the Church. - To approve the annual accounts and present them to the Annual Parochial Church Meeting. - To make representations to the Bishop with regard to any matter affecting the welfare of the Church in the parish. - To make representation about proposals concerning the parsonage house of the benefice. - To be consulted about the appointment of a new incumbent. - To be consulted about pastoral reorganisation affecting the parish. - To be responsible for the provision of certain items of liturgical furniture in the church, prayer books, bible and legal registers. - To be responsible for the care and repair of all churches, chapels, and churchyards within the parish. - To be responsible for ensuring that safeguarding measures are implemented and that the parish safeguarding policy is followed. - To be responsible for determining the policies and procedures for data processing and complying with data protection legislation. ## **Additional Financial responsibilities** Regulations require members of the PCC to prepare financial statements for each year which give a true and fair view of the state of affairs of the PCC at the end of the year and of the incoming and application of resources for the year then ended. In preparing those financial statements the members of the PCC are required to select suitable accounting policies and then apply them on a consistent basis, making judgements and estimates that are reasonable and prudent. The members of the PCC are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the PCC and to enable them to ensure that the financial statements comply with the Church Accounting Regulations and the Charities Act. PCC are also responsible for safeguarding the assets of the PCC and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The PCC are responsible for managing the risks faced by the church by establishing appropriate systems or procedures to mitigate risks. _Page 4_ Charities Commission – The PCC have considered the Charity Commission’s guidance on public benefit and in particular the guidance on charities for the advancement of religion when planning the activities for the year. ## **Accounting policies** The financial statements are prepared in accordance with accounting regulations and standards on accounting for Charities. _Funds –_ “Unrestricted” funds of the PCC are not subject to any restrictions regarding their use and are available for the application for the general purpose of the PCC. The “Restricted” funds of the PCC are subject to restrictions imposed by the donor at the time the funds were given to the PCC. _Financial statements_ - include transactions, assets, and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their affiliation to another body or those that are informal gatherings of church members. _Incoming resources_ – collections are recognised when received by or on behalf of the PCC. Planned giving receivable under Gift Aid is recognised when received from the donor. The income tax recoverable on these Gift Aid donations is recognised at the same time as the underlying donation. _Grants and legacies_ – are accounted for as soon as the PCC is notified of it’s legal entitlement, the amount due is quantified and it’s ultimate receipt by the PCC is reasonably certain. Funds raised from activities to further the PCC’s objectives are accounted for by gross of expenses met by the PCC. _Dividends and Interest_ – included on a receipt’s basis. ## **APCM PCC Treasurers Report 31st December 2020** _**“Bring the whole tithe into the storehouse. Test me in this “says the Lord Almighty, “and I will pour out so much blessing that there will not be enough room to store it”. Malachi 3 v10**_ Like so many others, St John and St Matthew’s church was dramatically affected in church attendance, worship patterns and finance by the Coronavirus Pandemic. In addition, the effect on the Chelmsford Diocese funds meant that clergy posts were under threat, particularly those who could not meet their Parish Share. To address this issue, a Finance Team met in August to develop a road map to determine the possibility of paying our share in full. Measures included a successful campaign to encourage people to give by standing order to offset the drop in weekly collections. We also received one off donations including one for £2,000 and this resulted in total giving increasing by £13,600 over 2019. Thank you to everyone for their faithfulness over a number of years and their combined effort to keep this church viable with a full-time minister. Hall income dropped by £8,900 as the premises were shut down. However, we were able to negotiate a new more economic rate with our pre-school from September 2020 to July 2022, bringing in an additional £5,000 for each school year. We also addressed our costs, particularly our bookkeeping and examination and payroll fees. In November 2020, we moved our bookkeeping from in house to a professional level with Data Development and our Independent Examiner to Charity Bookkeeping with a combined saving of £2,000. Furlough payments from the Government of £3,000 also reduced our payroll costs and in April 2021, we will transfer our payroll to local accountants for a further saving of £280. We also released £5,000 from our reserves and transferred £3,900 from designated funds and this combined with the above measures allowed us to pay our Parish Share in full at £50,100, the first time for four years… God is good! The church has no debts. _Page 5_ _Outlook for 2021:_ The measures we introduced in 2020 will mean that we will meet our commitments in 2021, particularly the Parish Share at £50,000. In addition, we believe that Hall Users will return along with the hiring out of spaces in our grounds for local traders. We believe that with God’s blessing on our ongoing ministry to the community, we are on the path to becoming a sustainable church. ## **David Rogers** **PCC Treasurer** ## **Notes on the Accounts** ## **Changes to accounting practices** The current income of the church is such that “Prepayments and Accruals” reporting is not required. “Receipts and Payments” reporting will be sufficient. PCC Standing Committee approved this change of accounting reporting on the 26[th] February 2021. Change to commence 1[st] January 2021 for year ending 31[st] December 2021. ## **Independent Examiner's Report to the Trustees of: St John and St Matthew South Hornchurch** I report on the accounts of the church for the year ended 31[st] December 2020 which are set out on finance pages of the Annual Report. ## **Respective Responsibilities of Trustees and Examiner** The church’s trustees are responsible for the preparation of the accounts. The church's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act **2011** (the 2011 Act)) and that an independent examination is needed. It is my responsibility to: - Examine the accounts under section 145 of the 2011 Act); - To follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the 2011 Act); and - To state whether particular matters have come to my attention. ## **Basis of Independent Examiner's report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the 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 you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. ## **Independent examiner's statement** _Since the gross income for the year exceeds the amount provided in section 145(3) of the Act, I confirm that I am qualified to act as Independent Examiner under the provisions of that section of the Act and that my qualification is as shown below._ In connection with my examination, no matter has come to my attention: - 1 which gives me reasonable cause to believe that in any material respect the requirements - to keep accounting records in accordance with section 130 of the 2011 Act; and - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met; or - 2 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. _Page 6_ Kevin Ogilvie Signed 13 Evelyns Close, Hillingdon, Middlesex, UB8 3LR Date 7[th] May 2020 ## **Statement of Financial Activities** ||**Unrestricted Designated**
**Restricted Endowment**
**Total**
**Prior year**
**funds**
**funds**
**funds**
**funds**
**funds**
**total funds**| |---|---| |**Income and endowments from:**
Donations and legacies
Income from charitable activities
Other trading activities
Investments
Other income
**Total income**
**Expenditure on:**
Expenditure on charitable activities
Other expenditure
**Total expenditure**
**Net income / (expenditure) resources before**
**transfer**
**Transfers**
Gross transfers between funds - in
Gross transfers between funds - out
**Other recognised gains / losses**
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**|155
—
—
—
155
—
61,687
—
110
—
61,797
61,520
133
—
500
—
633
—
5
—
—
—
5
61
17,865
—
—
—
17,865
24,133| ||**79,844**
**—**
**610**
**—**
**80,454**
**85,714**
60,764
50
511
—
61,325
43,899
19,593
—
500
—
20,093
34,736| ||**80,357**
**50**
**1,011**
**—**
**81,418**
**78,635**| ||**(513)**
**(50)**
**(401)**
**—**
**(964)**
**7,079**
5,925
—
—
—
5,925
9,205
(2,000)
(3,925)
—
—
(5,925)
(9,205)| ||**3,412**
**(3,975)**
**(401)**
**—**
**(964)**
**7,079**| ||**16,922**
**11,751**
**7,903**
**—**
**36,576**
**29,497**| ||**20,334**
**7,777**
**7,502**
**—**
**35,613**
**36,576**| ## **Balance sheet** |**Class and code**
**Description**|**This year**
**Last year**| |---|---| |**Current assets**
150001
Barclays Current account
150002
Barclays Saving accounts
150003
CBF Deposit Account
150013
Tiddlers Petty Cash
150014
Coffee Shop Petty Cash
Z05
Accounts Receivable
**Total Current assets**
**Liabilities**
6699
Agency collections
Z04
Accounts Payable
**Total Liabilities**
**Net Asset surplus(deficit)**
**Reserves**
Excess / (deficit) to date
Z01
Starting balances|4,577
25,168
20,000
—
8,162
8,157
82
82
—
—
4,266
5,210| ||**37,086**
**38,617**
20
—
1,453
2,040| ||**1,473**
**2,040**| ||**35,613**
**36,576**| ||(964)
7,079
36,576
29,497| _Page 7_ |**Total Reserves**
**Represented by funds**
Unrestricted
Designated
Restricted
Endowment
**Total**|**35,613**
**36,576**
20,334
16,922
7,777
11,751
7,502
7,903
—
—| |---|---| ||**35,613**
**36,576**| ## **Accounts approved by the PCC on 31[st] March 2021 and signed on its behalf** ## **Rev Kevin Browning (Chairperson of PCC)** ## **Fund movement by type** ||**Opening**
**Incoming**
**Outgoing**
**Transfers Gains/losses**
**Closing**| |---|---| |**General - General fund**
Unrestricted
**Sub-total for General**
**LIGHTHOUSE - Childrens Ministry**
Restricted
**Sub-total for LIGHTHOUSE**
**DEV - Church Development**
Designated
Restricted
**Sub-total for DEV**
**EVAN - Evangelism/Outreach**
Designated
**Sub-total for EVAN**
**HALLDEV - Hall Development**
Designated
Restricted
**Sub-total for HALLDEV**
**JUBILEE - Charitable assistance**
Designated
Restricted
**Sub-total for JUBILEE**
**MISSION - Mission**
Designated
Restricted
**Sub-total for MISSION**
**NURTURE - Nurture new Christians**
Restricted
**Sub-total for NURTURE**
**TRAINING - Assistance with training**
Restricted
**Sub-total for TRAINING**
**TIDDLERS - Tiddlers**
Restricted
**Sub-total for TIDDLERS**
**HARVEST - Training**|16,922
79,844
80,357
3,925
—
20,334| ||**16,922**
**79,844**
**80,357**
**3,925**
**—**
**20,334**
2,733
—
—
—
—
2,733| ||**2,733**
**—**
**—**
**—**
**—**
**2,733**
4,941
—
—
—
—
4,941
507
—
—
—
—
507| ||**5,448**
**—**
**—**
**—**
**—**
**5,448**
673
—
—
—
—
673| ||**673**
**—**
**—**
**—**
**—**
**673**
4,005
—
—
(2,000)
—
2,005
—
—
—
—
—
—| ||**4,005**
**—**
**—**
**(2,000)**
**—**
**2,005**
158
—
—
—
—
158
72
510
500
—
—
82| ||**230**
**510**
**500**
**—**
**—**
**240**
1,975
—
50
(1,925)
—
—
2,522
—
—
—
—
2,522| ||**4,497**
**—**
**50**
**(1,925)**
**—**
**2,522**
187
—
—
—
—
187| ||**187**
**—**
**—**
**—**
**—**
**187**
728
—
—
—
—
728| ||**728**
**—**
**—**
**—**
**—**
**728**
896
100
511
—
—
485| ||**896**
**100**
**511**
**—**
**—**
**485**| _Page 8_ |Restricted
**Sub-total for HARVEST**
**Grand total**|258
—
—
—
—
258| |---|---| ||**258**
**—**
**—**
**—**
**—**
**258**| ||**36,576**
**80,454**
**81,418**
**—**
**—**
**35,613**| ## **Analysis of income and expenditure** |**Total**
**Unrestricted Designated**
**Restricted**
**Endowment**
**This year**
**Last year**
**INCOME AND ENDOWMENTS**
**Donations and legacies**
Anonymous Donations
155
—
—
—
155
—
Total
155
—
—
—
155
—
**Income from charitable activities**
Tax claimable giving
50,130
—
—
—
50,130
36,928
Non tax claimable giving
660
—
—
—
660
178
Income Tax recovered
10,834
—
—
—
10,834
8,707
Church Collections
—
—
—
—
—
60
Tiddlers
—
—
100
—
100
1,777
Fellowship Events
48
—
—
—
48
3,275
Coffee shop
15
—
—
—
15
596
Hall Development
—
—
—
—
—
10,000
Jubilee fund
—
—
10
—
10
—
Total
61,687
—
110
—
61,797
61,520
**Other trading activities**
Sundry/Misc credits
133
—
500
—
633
—
Total
133
—
500
—
633
—
**Investments**
Interest
5
—
—
—
5
61
Total
5
—
—
—
5
61
**Other income**
Fees-Banns-Funeral
239
—
—
—
239
340
Hall Letts
12,162
—
—
—
12,162
21,084
Church Rentals
2,170
—
—
—
2,170
1,552
Grants
250
—
—
—
250
—
Refreshments
—
—
—
—
—
27
Church Development
—
—
—
—
—
1,130
HMRC Furlough Scheme
3,044
—
—
—
3,044
—
Total
17,865
—
—
—
17,865
24,133|**Total**
**Unrestricted Designated**
**Restricted**
**Endowment**
**This year**
**Last year**
**INCOME AND ENDOWMENTS**
**Donations and legacies**
Anonymous Donations
155
—
—
—
155
—
Total
155
—
—
—
155
—
**Income from charitable activities**
Tax claimable giving
50,130
—
—
—
50,130
36,928
Non tax claimable giving
660
—
—
—
660
178
Income Tax recovered
10,834
—
—
—
10,834
8,707
Church Collections
—
—
—
—
—
60
Tiddlers
—
—
100
—
100
1,777
Fellowship Events
48
—
—
—
48
3,275
Coffee shop
15
—
—
—
15
596
Hall Development
—
—
—
—
—
10,000
Jubilee fund
—
—
10
—
10
—
Total
61,687
—
110
—
61,797
61,520
**Other trading activities**
Sundry/Misc credits
133
—
500
—
633
—
Total
133
—
500
—
633
—
**Investments**
Interest
5
—
—
—
5
61
Total
5
—
—
—
5
61
**Other income**
Fees-Banns-Funeral
239
—
—
—
239
340
Hall Letts
12,162
—
—
—
12,162
21,084
Church Rentals
2,170
—
—
—
2,170
1,552
Grants
250
—
—
—
250
—
Refreshments
—
—
—
—
—
27
Church Development
—
—
—
—
—
1,130
HMRC Furlough Scheme
3,044
—
—
—
3,044
—
Total
17,865
—
—
—
17,865
24,133| |---|---| ||155
—
—
—
155
—
50,130
—
—
—
50,130
36,928
660
—
—
—
660
178
10,834
—
—
—
10,834
8,707
—
—
—
—
—
60
—
—
100
—
100
1,777
48
—
—
—
48
3,275
15
—
—
—
15
596
—
—
—
—
—
10,000
—
—
10
—
10
—| ||61,687
—
110
—
61,797
61,520
133
—
500
—
633
—| ||133
—
500
—
633
—
5
—
—
—
5
61| ||5
—
—
—
5
61
239
—
—
—
239
340
12,162
—
—
—
12,162
21,084
2,170
—
—
—
2,170
1,552
250
—
—
—
250
—
—
—
—
—
—
27
—
—
—
—
—
1,130
3,044
—
—
—
3,044
—| ||17,865
—
—
—
17,865
24,133| |**INCOME TOTAL**|79,844
—
610
—
80,454
85,714| _Page 9_ ## **EXPENDITURE** |**Expenditure on charitable activities**
Family Purse
50,103
—
—
—
50,103
26,400
Copyright Licence
286
—
—
—
286
279
Worship/Teaching books
—
—
—
—
—
856
Coffee shop
—
—
—
—
—
128
Mission (adhoc)
850
50
25
—
925
1,514
NI-Employee
—
—
—
—
—
122
NI-Church
—
—
—
—
—
(26)
Administrators Salary
9,025
—
—
—
9,025
9,866
Audit fees
500
—
—
—
500
1,140
Pledge envelopes
—
—
—
—
—
87
Evangelism outgoings
—
—
—
—
—
90
Tiddlers outgoings
—
—
486
—
486
1,868
Alpha Expenses
—
—
—
—
—
523
Fellowship events expenses
—
—
—
—
—
1,052
Total
60,764
50
511
—
61,325
43,899
**Other expenditure**
CH/Gas/Elec/ Water
2,351
—
—
—
2,351
2,277
Church maintenance
5,359
—
—
—
5,359
1,140
Church insurance
1,417
—
—
—
1,417
788
Postage
—
—
—
—
—
19
Stationery
616
—
—
—
616
867
Telephone
1,643
—
—
—
1,643
1,349
Miscellaneous expenses
643
—
500
—
1,143
1,942
Church development
—
—
—
—
—
14,988
Incumbants expenses
245
—
—
—
245
1,699
Cleaners salary/Cleaning supplies
912
—
—
—
912
2,066
Hall/Gas/Elec/Water
2,575
—
—
—
2,575
2,769
Hall maintenance
726
—
—
—
726
823
Refuse management
1,616
—
—
—
1,616
1,574
Hall Insurance
131
—
—
—
131
788
TV Licence
157
—
—
—
157
153
Payroll fees
180
—
—
—
180
464
Refreshments
71
—
—
—
71
449
Computer/Technology
951
—
—
—
951
580
Total
19,593
—
500
—
20,093
34,736|**Expenditure on charitable activities**
Family Purse
50,103
—
—
—
50,103
26,400
Copyright Licence
286
—
—
—
286
279
Worship/Teaching books
—
—
—
—
—
856
Coffee shop
—
—
—
—
—
128
Mission (adhoc)
850
50
25
—
925
1,514
NI-Employee
—
—
—
—
—
122
NI-Church
—
—
—
—
—
(26)
Administrators Salary
9,025
—
—
—
9,025
9,866
Audit fees
500
—
—
—
500
1,140
Pledge envelopes
—
—
—
—
—
87
Evangelism outgoings
—
—
—
—
—
90
Tiddlers outgoings
—
—
486
—
486
1,868
Alpha Expenses
—
—
—
—
—
523
Fellowship events expenses
—
—
—
—
—
1,052
Total
60,764
50
511
—
61,325
43,899
**Other expenditure**
CH/Gas/Elec/ Water
2,351
—
—
—
2,351
2,277
Church maintenance
5,359
—
—
—
5,359
1,140
Church insurance
1,417
—
—
—
1,417
788
Postage
—
—
—
—
—
19
Stationery
616
—
—
—
616
867
Telephone
1,643
—
—
—
1,643
1,349
Miscellaneous expenses
643
—
500
—
1,143
1,942
Church development
—
—
—
—
—
14,988
Incumbants expenses
245
—
—
—
245
1,699
Cleaners salary/Cleaning supplies
912
—
—
—
912
2,066
Hall/Gas/Elec/Water
2,575
—
—
—
2,575
2,769
Hall maintenance
726
—
—
—
726
823
Refuse management
1,616
—
—
—
1,616
1,574
Hall Insurance
131
—
—
—
131
788
TV Licence
157
—
—
—
157
153
Payroll fees
180
—
—
—
180
464
Refreshments
71
—
—
—
71
449
Computer/Technology
951
—
—
—
951
580
Total
19,593
—
500
—
20,093
34,736| |---|---| ||60,764
50
511
—
61,325
43,899
2,351
—
—
—
2,351
2,277
5,359
—
—
—
5,359
1,140
1,417
—
—
—
1,417
788
—
—
—
—
—
19
616
—
—
—
616
867
1,643
—
—
—
1,643
1,349
643
—
500
—
1,143
1,942
—
—
—
—
—
14,988
245
—
—
—
245
1,699
912
—
—
—
912
2,066
2,575
—
—
—
2,575
2,769
726
—
—
—
726
823
1,616
—
—
—
1,616
1,574
131
—
—
—
131
788
157
—
—
—
157
153
180
—
—
—
180
464
71
—
—
—
71
449
951
—
—
—
951
580| ||19,593
—
500
—
20,093
34,736| |**EXPENDITURE TOTAL**|80,357
50
1,011
—
81,418
78,635| ||| |**GRAND TOTAL**|(513)
(50)
(401)
—
(964)
7,079| _Page 10_