2021-12-31-accounts - The Parochial Church Council Of The Ecclesiastical Parish Of St. Peter Ad Vincula, Ditton

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St. Peter’s Church, Ditton

Annual Report and Financial Statements

of the Parochial Church Council

for the year ended 31[st] December 2021

Incumbent

Treasurer

The Revd Ross Terranova The Rectory 2 The Stream Ditton ME20 6AG

Mr Stephen Kemp 9 Ditton court Close Aylesford Kent ME20 6PQ

Independent Examiner

Bankers

Mr Peter Tite 28B Iron Mill Lane Crayford Kent DA1 4RW

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

April 2022

Registered Charity No. 1130864

‘We are here to demonstrate God’s love for all, as shown in Jesus to people where we live and work’.

Annual Report 2021

Introduction

St Peter ad Vincula Ditton Church is situated on The Green, New Road, Ditton and is part of the Diocese of Rochester within the Church of England. There is a Church Office which is part of the Church Centre complex opposite the Church.

The PCC assists, supports and encourages the Rector Revd Ross Terranova in promoting within the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for the Church and Church Centre Complex.

The full PCC met on 6 occasions during the year with an average attendance of 75%. Sub-committees met between meetings as required and a report on their deliberations and recommendations were considered by the PCC and decisions taken as required.

Membership

Members are ex officio, elected at the Annual Parochial Church Meeting, or co-opted.

During the year the following served as members of the PCC:

Rector	Revd Ross Terranova	Chairman
Wardens	Mr Alan Warner
	Mr John Paul
Treasurer	Mr Stephen Kemp
Representatives
On Deanery Synod	Mr Simon Webley	Vice Chairman
Elected members	Mrs Caroline Gibbons
	Mr Stephen Kemp
	Mr Ian Cropper
	Mrs Jane Beldham (also	Secretary)
	Mr Geoff Matthews
	Mrs Maureen Morris
	Mr Michael Morris
	Mrs Dierdre Johnson
	Mr David Grimes
	Mr Kennedy Emokpaire

Co-Opted Member Mrs Sandie Thomas

Safeguarding Officer from November 2016

Committees

Standing Committee

The Rector The Wardens The Treasurer The Secretary

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

Church Fabric and Churchyard Committee

Mr A Warner Mr J. Paul Mr I Cropper

Attends to matters relating to the church building and fabric and the churchyard.

Finance Committee

The Rector The Wardens The Treasurer (convenor) Asst. Treasurer Mr S Webley

Oversees the general finances through budgetary planning, monitoring income and expenditure, and application of financial controls and review of risks.

Church Centre Development and Management Team

Mr A Warner (convenor) Mrs C Gibbons

Attends to matters relating to the Church Centre Complex in respect of building, fabric, use and letting

Church attendance

At the Annual Parochial Church Meeting in May 2021, it was reported that the Electoral roll showed there were now 85 people on the roll.

This year has seen the gradual opening of many of the Church’s activities which had not been possible due to Covid-19 restrictions.

❖ Pre-School Services: The Pre-School enjoyed meeting once again in the Church building for an end of year leavers service, and Harvest, Christmas and Easter services. It was wonderful to see the Church full again for occasions that are always greatly appreciated.
❖ Junior School: The Junior School were involved in our Education Sunday service in February a service notable for a power cut which made life a little difficult. It was very encouraging to see so many parents at the service.
❖ Christian books for pre-school and Junior school children have been purchased and distributed thanks to a generous donation.
❖ The Easter service (the first since 2019) was a superb occasion with some great new Easter songs.
❖ Papa Panov: Members of the Church led by Liz Nicolaides performed a play based on the book Papa Panov written by a French minister to help his own children understand the meaning of Christmas. It was a tremendous success with around 70 children and parents attending the play at the beginning of December.
❖ Christmas and Easter: The two main festivals had been hit by the pandemic, so it was good to be able to sing again and also enjoy the great celebration of Carols on the Green on Christmas Eve.
❖ Church Building: Very significant work was completed as part of the most significant building works on the Church in recent decades. The building now has gutters – and large soakaways which will help significantly in the battle against damp.
❖ Small Groups: Most small groups have met online or in a hybrid mode during the past year. We are in the process of reorganising them post pandemic. We met during Lent to study the Passion for Christ: Cover to Cover, based on Corinthians.
❖ JAM Club: It has been really encouraging seeing our JAM club (Jesus and Me) grow over the past year.
❖ New Church Bibles: Following a successful appeal and some very generous donations we were able to purchase new pew bibles and a new lectern bible.
❖ Church Gates: Thanks to some generous donations we have been able to purchase new gates for the church which will be fitted in early 2022.

Review of the Financial Year – Highlights

❖ Despite our best efforts a number of things conspired to keep us in deficit.
❖ A new boiler was required for the church centre which cost over £3000.
❖ Whist the works on the church for rainwater goods and roof repairs have been budgeted for, VAT although reclaimable, has to be paid at the time of the invoice. Any repayment will be shown in next year’s accounts.
❖ ‘Planned Giving’ increased by only 1.7% which was well below inflation. The startling fact is that if you committed to pay the church £100 a month in 2012 it is only worth £77 today. It is therefore vital that giving is reviewed regularly and, where possible, increased in line with inflation.
❖ We have done better than some local churches as the vast majority of giving to St Peters is given through electronic payments and that has continued throughout the pandemic. Hopefully all giving to the church will be managed this way in future.
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❖ Noticeably, and perhaps illustrating this point – Cash Collections were down 60%
❖ Rents, Fees and Event income continue to improve showing an increase of 48% however with the diocese now claiming a percentage of fee income this is reduced to 40%.
❖ Gift Day raised £15286 which was increased to £18257 with Gift Aid and was shared between our Mission Organisations and Church building works renovations to the heating in the church centre.
❖ On realising that we were heading for deficit, we asked the diocese if we could reduce our contributions to Ministry Costs and the Paris Share but whilst early discussions took place no agreement was arrived at. Consequently, we have offered a lower amount for 2022 which has, thankfully, been agreed.
❖ The church finances are managed using the Data Developments On-Line accounts package. ❖ The Christmas Card collection raised circa £150.00, and Carols on the Green raised over £500 for an appeal in memory of Jared Smith.
❖ The grant from the Friends of Kent Churches for £8000 was successfully claimed and applied to offset costs on the rainwater goods and soakaways.
❖ Repairs to the church will continue in 2022 & 2023 and we wish to thank everyone for your continued support and prayers whilst we raise these funds.

Review of Financial Situation

The Parochial Church Council is a registered Charity and the annual accounts of the Church are prepared on the accruals basis and submitted to both the Diocese and the Charity Commission.

As in previous years, the PCC has continued the policy to account for Gift Day income and expenditure outside the normal budgetary process and this has been maintained in 2021.

The outturn for 2021 shows a deficit of: £3540.36 (Unrestricted £-9660.38; Restricted £6120.02)

Income

In terms of income, there was only a very small increase in ‘planned giving’ as a result of commitment Sunday in 2021 which will not cover inflation and the predicted rise in utility costs in 2022. Gift Aid returns reflected the amount given in response to appeals, particularly, for the Building Fund, bibles and in response to the tragic passing of Jared Smith. Notice of a rise in Centre Rents to try in some way to cover increased costs, was given at the end of the year. A grant of £8000, towards the provision of rainwater goods and soakaways was gratefully received from the Friends of Kent Churches.

To encourage giving we now have a card reader and whilst there is a fee for its use, the convenience it provides in terms of less administration, is well worth it. We can also run appeals using a QR code and/or the ‘Give A Little’ website which tracks Gift Aid.

Expenditure

A new boiler was required in the church centre to ensure that pre-school is kept at an appropriate temperature. Building works as part of the last quinquennial inspection have started to drain reserves but the work will provide years of protection to the fabric of the church building. The rise in cost of living particularly in terms of energy prices is of particular concern to the PCC as current centre rents increases were made before news of increased tariffs.

Reserves Policy

The Finance Committee meets to discuss a draft budget for the following financial year and makes recommendations to the PCC for consideration. Once the budget is approved progress is monitored at each PCC meeting during the year and any necessary variation approved. The main aim is to operate a balanced budget year on year whilst continuing the maintenance and upkeep of the physical assets under the PCC’s stewardship.

Reserves are maintained to cover at least 3 months’ expenditure.
Special funds are established for any major project or appeals undertaken.
The use of Designated Funds is considered as the need arises.

Any substantial funds in the current account which are not for immediate use are placed in interest bearing accounts as approved by the PCC.

Risk Management Statement

In 2003 the Finance Committee carried out a detailed risk assessment and made recommendations to the PCC. The major risks that impact upon the work of the Church were identified, assessed and minimised. This has been extended to other sub-committees of the PCC to review and report to the PCC as necessary.

The PCC approved the Child Protection Policy and the Disclosure and Child Protection Officer continued the work on obtaining disclosures and training for all those involved in children’s activities within the Church.

These have been reviewed this year and amended as necessary in accordance with the Diocesan Policy.

Approved by the PCC on Sunday 1[st] May 2022

Revd Ross Terranova (PCC Chairman)

Date: ………04/06/2022….

Independent Examiner’s Report to the PCC of St. Peter’s Ditton

This report on the financial statements of the PCC for the year ended 31[st] December 2021, which are set out on pages 9 to 15, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 (‘the Regulations’) and section 145 of the Charities Act 2011 (‘the Act’).

As members of the PCC you are responsible for the preparation of the financial statements. You consider that the audit requirement of the Regulations and section 144 (2) of the Act do not apply. It is my responsibility to issue this report on those financial statements in accordance with the terms of the Regulations.

My examination was carried out in accordance with the General Directions given by the Charity Commission. That examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the financial statements 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 I do not express an audit opinion on the view given by the accounts.

In connection with my examination, no matter has come to my attention.

(1) which give me reasonable cause to believe that in any material respect the requirements
a. to keep accounting records in accordance with section 130 of the Act; and
b. to prepare financial statements, which accord with the accounting records and comply with the requirements of the Act and the Regulations have not been met;

(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: ……………………………………

Mr Peter Tite 28 B Iron Mill Lane Crayford Kent DA1 4RW

Parochial Church Council of St Peter, Ditton Statement of financial activities For the year ending 31 December 2021

	FUNDS 2020 Unrestricted funds £ Note £ INCOME & ENDOWMENTS 88,989.74 Donations & legacies 1 76,404.36 570.57 Activities for generating funds 2 345.26 0.00 Investments 3 0.00 5,502.00 Other trading activites 4 3,607.60 8,433.96 Other income 5 63.91 103,496.27 TOTAL INCOMING RESOURCES 80,421.13 RESOURCES EXPENDED 223.80 Cost of generating funds 6 44.49 920.00 Grants & Charitable giving 7 30.00 5,590.80 Parish share 8 5,822.40 56,134.91 Staffing Costs 9 57,924.67 18,002.83 Church Running 10 8,135.69 15,268.00 Centre & Cottage Running 11 12,621.75 100.00 Governance Costs 12 100.00 5,639.80 Church Administration 13 4,469.07 90.00 Other resources expended 14 923.44 13,157.03 Gift day allocation 15 0.00 115,127.17 TOTAL RESOURCES EXPENDED 90,071.51 -11,630.90 NET INCOMING RESOURCES -9,650.38 Debtors (Tax reclaim) 100.00 Creditors 6,657.03 Gift day /receipt in advance 8,249.04 Adjustments () 15,006.07 3,375.17 BALANCES B/FWD 1st JAN 2021 ? 34,142.13 35,186.59 BALANCES C/FWD 31 DEC 2021 ? 18,693.04 Petty Cash 39.97 Various Payments, Postage 39.97 Cash in hand	Restricted Funds £ 33,574.46 0.00 0.00 4,565.00 14,367.50 52,506.96 0.00 342.00 0.00 0.00 23,172.69 4,625.00 0.00 0.00 0.00 18,257.25 46,396.94 6,110.02 * 4,419.63 B 10,072.13** A	TOTAL 2021 £ 109,978.82 345.26 0.00 8,172.60 14,431.41
			132,928.09
			44.49 372.00 5,822.40 57,924.67 31,308.38 17,246.75 100.00 4,469.07 923.44 18,257.25
			136,468.45

			-3,540.36 -8,956.21 1,370.00 1,329.98

			-9,796.59
			(A-B)
			38,561.76

			28,765.17
			39.97
			0.00

This figure is reached by subtracting the opening and closing balances from the bank statements and has to be maintained whatever adjustments are made.

	FUNDS 2020 INCOME & ENDOWMENTS £ Note 1 Donations & legacies Planned giving: 54,348.00 Gift Aid donation 13,730.03 Tax recovered 2,317.87 Other giving 2,309.06 Collections 677.11 Tax recovered 13,157.03 Gift day 0.00 Tax recovered 24.00 Grants 2,426.64 Donations, appeals etc. 0 Tax recovered 88,989.74 Total 2 Activities for generating funds 90.00 Events 288.07 Sales 192.50 Sponsored events 0.00 Awayday 570.57 Total P 3 Investments 0.00 Total P Other trading activites 3,708.00 Church Centre Rents Pre-school Rents 1,794.00 4 Fees 5,502.00 Total P Other income 50.00 5 C Cards 2021 27.50 C Cards Tax Recovered 35.20 Miscellaneous 0.00 Easy Fundraising 0.00 Refunds 8,321.26 Funds transfer Building Fund 8,433.96 Total P 103,496.27 TOTAL INCOMING RESOURCES RESOURCES EXPENDED Cost of generating funds 22.80 6 Stewardship scheme exp. 201.00 Events Event Costs 223.80 Total P Grants and Charitable giving 0.00 7 Overseas CMJ 0.00 Armonia 0.00 Crosslinks 440.00 Tearfund 0.00 Home CPAS 0.00 Poppy Appeal 30.00 Churches Together 450.00 Link to Hope (Shoebox 920.00 Total P		Unrestricted Funds £ 54941.00 13,750.26 6139.97 769.22 336.83 467.08 76,404.36 80.26 265.00 345.26 0.00 1,900.60 1,707.00 3,607.60 0.00 40.36 23.55 63.91 80,421.13 44.49 44.49 30.00 30.00		Restricted Funds £ 350.00 125.00 15,286.00 2,971.25 9,067.54 5774.67 33,574.46 0.00 0.00 4,140.00 425.00 4,565.00 145.00 12.50 12,000.00 2,210.00 14,367.50 52,506.96 0.00 210.00 132.00 342.00		TOTAL 2021 £ 55,291.00 13,875.26 6,139.97 769.22 336.83 15,286.00 2,971.25 9,067.54 6,241.75 0.00

							109,978.82
							0.00 80.26 265.00
							345.26

							0.00
							1,900.60 4,140.00 2,132.00
							8,172.60
							145.00 12.50 0.00 40.36 23.55 12,000.00 2,210.00
							14,431.41

							132,928.09
							0.00 44.49
							44.49
							0.00 0.00 0.00 0.00 0.00 210.00 30.00 132.00
							372.00

FUNDS 2020 5,590.80 8 Parish share / Pledge 50,324.20 9 Staffing Costs Stipend and Pens. / Min. Costs 1,800.00 Rectors expenses 3,292.31 Rectory Council tax 414.40 Rectory water and sewerage 0.00 Rectory maintenance 0.00 Assist. Min. honararium 0.00 Assist. Min. expenses 304.00 Visiting speakers 56,134.91 Total P 714.02 10 Church Running Energy costs 73.74 Water 1,905.21 Insurance 519.92 General repairs and maint. 1,035.00 Organ Service and Organist 125.35 Book, materials 538.85 Copyright licence 376.00 Wedding and funeral expenses 2,520.00 Churchyard 1,600.00 Repair Fund 0.00 Training 682.00 Childrens Activities 1,327.48 Audiovisual Equipment 0.00 Miscellaneous 6,585.26 Structural Repairs 18,002.83 Total P 2,394.59 11 Centre & CottageEnergy costs 493.20 Water 2,385.49 Cleaning 1,960.82 Insurance 539.60 Cottage repair fund 212.00 Internet & Software 4,246.00 General repair and maintenance 847.95 Equipment and maintenance 1,642.59 Office and telephone 545.76 Miscellaneous 15,268.00 Total P 100.00 12 Governance CostAuditor Fee 4,446.00 13 Church Admin.Parish administrator 1,193.80 & Admin. Printing,Stationery and Copy. 0.00 5,639.80 Total 14 60.00 Bank charges 0.00 Miscellaneous 0.00 Other Fees 30.00 Fund transfer 90.00 Total 15 6,657.03 Special Projects 0.00 Building Works 1,250.00 CMJ 1,250.00 Armonia 1,500.00 Crosslinks 1,250.00 Tearfund 1,250.00 CPAS 13,157.03 115,127.17 Total Resources Expended 11 Gift day allocation Other resources expended		Unrestricted Funds 5,822.40 52,401.60 1,800.00 3,436.83 186.24 0.00 0.00 0.00 100.00 57,924.67 934.10 92.02 1,688.22 137.81 0.00 281.09 630.06 1,459.00 2,000.00 0.00 29.99 868.40 15.00 8,135.69 500.44 865.71 1,201.19 2,090.84 539.60 509.95 4,360.31 1,062.55 1,469.33 21.83 12,621.75 100.00 3,728.25 740.82 4,469.07 96.50 800.00 26.94 923.44 0.00 90,071.51		Restricted Funds 0.00 0.00 1,680.15 425.00 24.00 0.00 21,043.54 23,172.69 2,665.00 1,840.00 120.00 4,625.00 0.00 0.00 0.00 10,427.27 1,329.98 1,250.00 1,250.00 1,500.00 1,250.00 1,250.00 18,257.25 46,396.94		TOTAL 2021

						5,822.40
						52,401.60 1,800.00 3,436.83 186.24 0.00 0.00 0.00 100.00
						57,924.67
						934.10 92.02 1,688.22 137.81 0.00 1,961.24 630.06 425.00 1,483.00 2,000.00 0.00 29.99 868.40 15.00 21,043.54
						31,308.38
						3,165.44 865.71 3,041.19 2,210.84 539.60 509.95 4,360.31 1,062.55 1,469.33 21.83
						17,246.75

						100.00
						3,728.25 740.82 0.00
						4,469.07
						96.50 800.00 26.94 0.00
						923.44
						10,427.27 1,329.98 1,250.00 1,250.00 1,500.00 1,250.00 1,250.00
						18,257.25

						136,468.45

OTHER ACCOUNTS HELD BY THE PCC

YEAR 2020						YEAR 2021
£		SAVINGS ACCOUNT- CHURCH #				£
21,864.69		Account	balance		at 1st January	17,507.00
1,600.00		Receipts				2,000.00
-6,021.26		Transfer				-12,000.00
63.57		Interest				26.75
17,507.00						7,533.75	P
		SAVINGS ACCOUNT COTTAGE #
5,432.07		Account	balance		at 1st January	3,688.57
539.60		Receipts				546.46
-2300.00		Transfer
		Payments
16.90		Interest				6.86
3,688.57						4,241.89	P
		# All these accounts are held at the Diocese
		CAFCASH ACCOUNT DEVELOPMENT FUND
10,351.85		Account	balance		at 1st January	10,291.85
6,500.00		Receipts
-60.00		Charges				-96.00
-6,500.00		Transfer
		Interest
10,291.85						10,195.85	P
		CAF/CASH ACCOUNT BURSARY FUND
45.20		Account	balance		1st January	0.00
30		Receipts
-40.00		Charges
-35.20		Transfer
0.00						0.00	P
		CAF/CASH GOLD				5,175.85
5,171.70		Opening	balance			0.52
4.15		Interest /	Gift Day
5,175.85		Closing balance				5,176.37	P
4150.00
2,430.00
1720.00	2665	3165.44			500.44
	2921.19		1720	1201.19

STATEMENT OF ASSETS AND LIABILITIES AT 31ST DECEMBER 2021

MONETARY ASSETS

	General Fund	Savings Account Church	Savings Account Cottage	CAFCASH Dev. Fund	CAFCASH Bursery Fund	CAFCASH Gen	CAFCASH Gold	Total 2021	2020
Petty Cash Accounts Held at Diocese Account Held at C.A.F.	£ 38,561.76	£ 7,533.75	£ 3,688.57	£ 10,291.85	£ 0.00	£	£ 5,176.37	£ 0.00 11,222.32 54,029.98	£ 39.97 21,195.57 54,029.46
Total	38,561.76	7,533.75	4,241.89	10,291.85	0.00	0.00	5,176.37	65,252.30	75,265.00

LIABILITIES

Total DEBTORS 8956.21 CREDITORS 1370.00 RECEIPT IN ADVANCE Gift Day Reclaim 1329.98

NON-MONETARY ASSETS

i Church and Grounds

ii Church Centre - on lease iii Church Cottage - on lease iv Office Equipment including IT - £1,250 v Projector and screen-Church- £3,200 vi Audio Equipment £4,600

Accounting Policies

The financial statements have been prepared under the Church Accounting Regulations 2006 in accordance with applicable accounting statements and the current Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2015) on the accruals basis.

Funds

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. The PCC does not usually invest separately for each fund.

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

Incoming Resources

Planned-giving, collections and donations are recognised when received. Tax refunds are claimed on a quarterly basis in arrears. 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.

Resources Expended

Grants and donations are accounted for when paid over. The Diocesan Parish share is accounted for when due. Amounts received specifically for mission are dealt with as restricted funds. All other expenditure is generally recognised when it is incurred and is accounted for gross.

Fixed Assets

Consecrated and benefice property is not included in the accounts in accordance with s.10 (2) (a) and (c) of the Charities Act 2011.

Movable church furnishings held by the Rector and Church Wardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the Church’s inventory. Equipment within the Church and Church Centre have been purchased from revenue.

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Explanation of Funds

The PCC has a number of funds held either by the Diocese or by the Charities Aid Foundation as follows.

(1) Savings Account – Church

This fund is fed by contributions paid by the PCC to the Diocese. Interest is added to the fund on an annual basis. The assets are available to the PCC to meet expenditure incurred on necessary repairs following the Quinquennial review of the Church.

(2) Savings Account – Cottage

This fund is fed by contributions paid by the PCC to the Diocese. Interest is added to the fund on an annual basis. These funds are available to the PCC to meet expenditure incurred on any necessary repairs arising from this review.

(3) Development Fund – CAFCASH Account

This fund is held with the Charities Aid Foundation and has been used in the past to finance the refurbishment of the entrance area of the Church to improve the external lighting, and the renewal of the Church heating system. The major legacy received by the church is held within the fund and has been used to finance these works. The account also holds the balance of the legacy received for use within the churchyard. It has been decided that tis account should be closed in 2022 and all funds transferred to the Gold (interest bearing account).

(4) Bursary Fund – CAFCASH Account

In 2003 this Fund was set up by the PCC to assist young members of the Church in undertaking missionary work. The fund has been replenished, as necessary, with contributions from Gift Days. This fund was held with the Charities Aid Foundation. This account is now closed.

(5) CAFCASH – General Fund

This account is the main bank account for the regular finances of the Church.

(6) CAFCASH – Gold Account

This fund contains the initial deposit used to set up the account and will be used for any surplus funds held by the PCC in the future. In 2015 a proportion of the Gift Day monies was transferred to this fund to set up a Church Building Repair Fund. In 2022 this will become the main savings account for the church.

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