THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK (registered charity no. 1130866) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 CONTENTS Page(s) Annual Report of the Parochial Church Council 1-10 Independent Auditors, Report statement of Financial Activities 14 Balance Sheet 15 Cash Flow Statement 16 Notes to the Financial Statemenls 17-30 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 The Parochial Church Council {PCC) has pleasure in presenting ils Report and Financial Statements for the year ended 31 December 2023. The financial statements have been prepared in accordance wilh the Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) effective 1 January 2019, the Charities Act 2011, the Church Accounting Regulations 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The PCC is a Public Benefit Entity. OBJECTIVES AND ACTIVITIES St Michael le Belfrey Parochial Church Council (PCC) is responsible with the Vicar (Matthew Porter unlil June 2023) I Interim Priest-in-charge {Andy Baker from October) for good governance of the hurch. Over the last 12 months the church - often known as the Belfrey - has conlinued in ils visioft to Serve God s Transfom7ation of the North. Our five aims of Sorving York, Making disciples, Nurturing disciples. Developing leaders and Planting churches are at the heart of our strategy. These are about social action, evangelism. discipleship, leadership and planting. These five aims particularly infomled our activilies, our prayers and our preaching during 2023. We also launched a new tnission statement in September, which was a public-facing summary of all of our vision and airns. This statement was that we are to Pray, Give. Grow, building on our legacy of prayer and ministry, our value of generosity and our desire to Continue to grow in fruittulness as we temF)orarily occupy Ihe De Grey Rooms. The Leadership Team and PCC believe that, if we do these things, with the help of God our missional influence on our city an¢J region will be great. We believe that our major project lo reorder and repair St Michael le Belfrey Church, known as Impact, is crucial lo the advancement of the Belfrey's vision and strategy. Significant milestones were achieved in 2023, when we received planning permission and listed building consent from City of York Council, faculty approval from the Chancellor of the Diocese of York and our first substantial grant towards the work. Tenders were issued and we continued to fundraise for the final 200/0 of finance required. When considering the objectives of the charity the trustees (the PCC) have referred to the gLsidance contained in the Charity Commission's general guidance on public benefit. This report highlights some of the public benefit of St Michael le Belfrey Church. ACHIEVEMENTS AND PERFORMANCE Church attendance St Michael le Belfrey has a simple gathering structure of congregations and groups. During 2023 we had 4 weekly services (on Sundays, meeting in St Michael le Belfrey Church, moving to De Grey Rooms from September at 9am, 11am and 6pm,. and on Wednesdays at 12.30pm). Our Sunday services were also available online. Throughout 2023 we had approximately 40 midweek small groups, known as Belfrey Groups. At the Annual Meeting 2023 there were 488 people on the church electoral roll, plus a further 38 at G2, a church we began In 2004, still legally under our govemance, making the totsl 526. THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 The average we6kly attendance dLsring October 2023 was 414 for congregations meeting in De Grey Rooms, and 180 for online linkups. making a weekly total of 594. {This does not incluije G2.1 Oper8tional review 2023 was a year of change, as we said farewell to our previous Vicar, Matthew Porter, on his consecration as Bishop of Bolton; and as we temporarily decanted into the De Grey Rooms so that the build phase of our Repair and Reordering project, Impact, could begin in St Michael-le-Belfrey Church. Church life picked up in our new venue, as we gathered there for wee￿Y services and evants. But as is clear from this booklet, which summarises rnany ministries of our church, so much more happened in 20231 As we continued to be a church wanting to play our part in serving God's transformation of the North, we had our five aims very much in mind: servlng York (social action) making disciples (evangelism) nurturing disciples (discipleship) developing leaders (leadership) planting churches (planting) As wé sought to serve York especially by supporting those in need through our Social Action Programme, it was exciting to see our CAP (Christians Against Poverty) Debt Centre develop. helping those struggling with debt. We rejoiced with each of the four people who were set free from debt by this work. Within this programme, our Post-Pandemic Fund (PPF} conlir)ued to be a beneficial resource, enabling us to give many small grants to organisations serving York in our three focus areas.. poverty,. mental health,. and young people and families. We did this in partnership with Two Ridings Community Foundation as well as some grant-making responsive to immediate local needs. We also ran a £100,000 'Catalyser' Fund where we awarded larger grants to 8 local charities to act as a catalyst for growth, innovation and sustainability, and formed a Community of Practi￿ lo continue learning togelher. Other granl-making included £50,000 lo support the Eden Byker Team being established by St Thomas, Newcastle, one of our previous Belfrey church plants. Thanks to ihe PPF, we were delighted to appoint Mandy Smith as our Children & Families Outreach Worker. lo develop a net￿Ork supporting church-run toddler groups, in partnership with the Diocese of York who provided some additional funding for this, and to set up a family b8fri8nding service to start in 2024 in partnership with Safe Families UK. Jessica Horn also joined us to set up and manage our Counselling Service, due to launch in spring 2024 in partnership with Wellspring Therapy and Training. All Ihe projects we've started as part of our social action programme provide opportunilies for church members to get involved in volunteerlng, and we especially emphasised this through our Love Your Neighbour initiative, which had a different focus for each quarter of the year for congregations to get involved with, including Besom projects, haNest foodbank donations and Christmas hampers for those in need. We also, in 2023, continued to preach Christ and sought to be a church maklng disciples. We know of at leasl 53 people who made professions of faith during the year, and 27 adults publicly marked new or renewed faith (in Baptism, or Affirmation of Baptismal Faith). Our Belfrey Doors team facilitated daily opening of our church building during the week until it closed in September, to welcome in visitors to experience the good news of Jesus. Welcome Lunches were hosted almost every month, and we continued to ensure people were linked into Belfrey Groups. Through our Belfrey Groups, worship services and courses such as The Bereavament Journey, we aimed to be a church nurturing disciples. In 2023 we were sad to say farewell lo Elaine Davies, THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 Grace Dawson, Doug Greenfield, Jenny Hough, Daniel Lydiate, Harry Lydiate, Linda Peace, Bob Shead and Dan Simpson as they passed away. We honoured thern and their kind and faithful service to many. They will be sorely missed. Our House of Prayer team continued to pray for transformation in York and the North, and a faithful group gathered on Zoom at 7am each Tuesday morning for Dynamic Prayer. Developlng leaders continued by giving more people opportunities to lead - not just in services, but in small groups and many of the church's ministries. Wewere pleased lo have 22 fantastic interns with us across 2023. and lo watch them grow in faith, spiritual rnaturity and experience. As well as running the Growing Leaders course, lots of people have been safeguarding-trained and equipped for roles in all sorts of areas of church life. Most of all, we hope the teaching in our services and the Bible studies in our small groups are able to be applied in a multiplicity of conlexts, so each one of us is increasingly equipped lo be people of influence, in our families, in our streets, al work and beyond. It was wonderful to be preparing to send Vicky Earll and a team to plant a church in Hull early in 2024. As plantlng Churches becomes more embedded in our culture, we've been able to serve the vision of our Diocese. Having a Northem Church Planting Fund is also helpful, as we can support a variety of planting initiatives beyond us. not just in prayer but with some financial support and networking too. As part of our move lo the De Grey Rooms, and in order to specify what God was doing this year, we launched our new Mission Statement 'Pray, Give, Grow., This was to make it apparent that for the next few years, whilst we are out of our own church building, we have a clear way to keep our eyes fixed on Jesus. We will continue to focus on our five aims but this mission statement allows us to clearly focus on prayer, generosily and growth in order to work towards them. 2023 was a hugely significant year for Impact, our c£11 m project to repair and reorder St Michael le Belfrey Church building. We received a further £1.5 million and are enormously grateful lo those who have given their support, including Trusts, individual donors and our generous church members. Significant grants have been pledged or received from the Benefact Trust. Liz and Terry Bramall Foundation, Feoffeess of St Michael's Spurriergate, Yorkshire Historic Churches Trust, The Hobson Charity and The Collier Trust. The project was granted essential permissions in 2023 - a big answer to prayer - which included planning permission and listed building consent from City of York Council and faculty approval from Ihe Chancellor of the Diocese of York. Further applications lo install smoke vents in the new roof to meet rire regulations and for the external signage and creation of hoardings wilh graphics were submitted later in the year. Autumn 2023 gave us the opportunity to cary out our Wood Reclamation project, ahead of the Construction stage. The aim is to repurpose the wood for commercial and domestic use as parl of our Sustainability sÉrategy. Taking down the pews, gallery and narthex panels was carried out carefully and sensitively, recognising that the removal of such features has met with opposition. The hope is the gallery staircases can be used in new locations and the children's pews reconstructed and relocated. Some of the wood has been made into Belfrey ftjrniture for people to purchase, particularly for members or those with a former connection with the church. It gives thern the opportunity to own a physical reminder of the church building before Èt is reordered and contributes to the fundraising campaign. In December 2023 the Tender, a substantial piece of work, was issued to six contractors by Cost Consultants Morham & Brotchie (The Belfrey's Cost Consultants and part of the design team led by LDN Ar¢hitectsl. Tenders are due to be returned in March 2024 and the hope is to select a Contractor lo start on site by Spring 2024. THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY W￿H ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 We continue to cover Impact in prayer as we move into 2024.11 is a stretching project but the resulls from which will support our ministries for generations to come. PLANS FOR THE FUTURE In ordertofurtherourvision, we conlinued in 2023 to workon fulfilling our5Year Roadmap, launched in 2021. The roadmap informed much of our preaching and in 2023, we preached on themes that would prepare us well for our reordering project, while keeping mission central to our church life. Looking ahead we are convinced that all five aims need to be kept Gentral to Church life if we are to continue to grow. impact our city and beyond and be a church thal plants churches that plant churches. St Michael le Belfrey continues to plan for growth, not for decline. We believe we have a strategic and God-given vision and humbly, prayerfully and confidently seek for it lo be furthered in the coming years. We plan to send out a team every two years to plant either something brand new or to revitalise an old church. We are pleased to be part of the Diocese's strategic planning for the coming years as together we seek lo grow and to particularly impact the 20s-40s age group. We will also continue developing our plans for using a re-ordered St Michael le Belfrey church building. As we do so, we will seek to become an increasingly sustainable church, in line with the Climate and Environmenlal Emergency Declaration which the PCC made in autumn 2021. As part of this declaration we committed to becoming an ecowchurch. resolving that our church repairlreordering and our church family should treat eco matters as very important. CHARITY GOVERNANCE CODE As a charttab5e body. we fulfil the 7 principles set out in the Charity Governance Code as follows.. 1. Organisational Purpose: We exist for worship and mission in the parish of St Michael le Belfrey, York. Our vision is to be serving God's Transformation of the North and for this we work and pray. To fulfil this vision our strategic emphases in 2023 were: serving York, proclaiming Christ, nurturing disciples, developing leaders and planting churches. 2. Leadership: The church is led by the Vicar with the assistance of a Leadership Team and is governed by the PCC. Both the Vicar and Associate Ministerare of incumbent status. Responsibility for much of the day-to-day life of the church is delegated to our staff and volunteers. We highly value the Ministry of the whole church. with much work being done by volunleers, inGludin9 small group leaders, helpers and pray-ers in all sorts of areas of church life. 3. Integrity: We are followers of J8sus who seek to live under the authority of Scripture in the power of the Holy Spirit, while recognising our imperfections and weaknesses and our need of God's grace. We take safeguarding very seriously, being ably led by our Parish Safeguarding Officer, Barrie Stephenson, with over 200 members of our church family receiving regular safeguarding training. We seek to live with integrity, telling the truth and abiding by the law of the land. At PCC meetings we narne conflicts of interest. We seek to honour each other, speak well of each other and give each other the benefit of the doubt. We particularly value generosity, festivity, simplicity, and humility. Our supporting values indude klndness, creativity. diversity and integrity. THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 4. Decision-making. Risk and Control.. We have a number of key goals for each year which are regularly monitored. We regularly review terms of reference, policies and the risk register. Our PCC membership is refreshed annually. Our accounts are professionally audited. Our financial statements, annual reports and various publications are shared with the Diocese of York, of which we are part. Al staff and volunteers are line-managed. 5. Board Effectiveness: Our PCC and Standing Committee meet in alternate months. We take advice from experts outside our church, especially in specialist HR, safeguarding or finance rnatters. We believe the PCC has a good mix of skills. experience, common sense and prayerfulness. New PCC members are given trustee induction and all undergo basic online safeguarding training. 6. Div8rsity.' God's Klngdom is made up of all manner of people but, historically, our church has not fully reflected this diversiiy in its membership, staffing and leadership, partly because of the background and makeup of York residents. We have continued to seek to make progress towards greater diversity within the leadership and membership of this church. There is a better gender and age balance across wardens and PCC members than in most churches. In particular, in 2022 we were pleased, with other larger churches in our diocese, to support a new racial diversity policy, committing ourselves to develop our recruitment processes to attract greater participation from diverse groups, and ensuring our intervi8w panels are suilably diverse and their members have undergone unconscious bias training. 7. Openness & Accountability: Our key stakeholders are our church family. Those who belong to the Belfrey normally show this by joining our electoral roll, worshipping regularly at one of our services, joining a small group and giving regularly. Most choose to receive a weekly email which includes a Friday Message (from the Vicar and staffj, as well as news items, a calendar of services and Belfrey events, links to useful resources for church members, and the latest PCC Minutes. As well as oral and video notice5 in our services our church provides regular information on various social media platforms, including Facebook, Instagram and Twitter. We listen to feedback and take seriously all suggestions on how to improve our church lrfe, discussing this at VLT and when necessary al PCC. Our 5 Year Roadmap, launched in 2021, incorporated feedback gathered in a large-scale Church Survey carried oul in 2020. This survey also took place in 2023, which gave us interesting data. The issues that were highlighted were mainly around prayer and the value people place on Worship and Bible Teaching. We were also delighted to see that over 500/0 of our church would be interested in planting. We also encourage questions lo be asked throughout the year, with written questions being invited on our annual report as well as oral questions at our Annual Meeting. We comply wilh the Data Protection Act 2018 and keep clear, accurate and upto-date membership records using the safe and secure Churchsuite church management system. FINANCIAL REVIEW Total income received in 2023 was £1,465,176 and total expenditure was £1,765,271. This led to an overall deficit of £300.095. mostly due to expenditure of restricted funds related to the Impact project and the Post-Pandemic Fund. Unrestricted income was £815,276 and unrestricted expenditure £793,317 leaving a surplus of £21,959. Compared with 2022. unrestricted donations and legacies increased by £126,000 to £696,000. £15,000 of this was designated by the PCC for work with children, families and students. Unrestricted expenditur8 reduced by £67.000 to £793,000. This was mostly to do with THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY MTH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 moving to the De Grey Rooms over the summer and savings on utilities in the church and the parish centre over winter. Restricted income was £649.900 and restricted expendtture £971,954, resulting in a deficit of £322,054. Compared with 2022, restricted donations and legacies increased by £76,000. This was due to conlinued fundraising for Impact, which brought in £65,000 more than in 2022 before Gw Aid. We also received £291,000 of restricted grant income. £220,000 of this was for the Impact project, £33,000 was reimbursed VAT under the Listed Places of Worship grant scheme (also for the Impact project), and £35,000 towards 18-30s and sludent workers, salaries. We were able to earn £55,000 of bank interest by investing money received for Impact in short-term deposits. The Posl-Pandemic Fund for social adion gave out grants in 2023 amounting lo £217.000. While we did receive £9,500 of income into the PPF in 2023, the fund is on track to be fully spent by the end of 2027. Fundraising has started in order to enable the social action projects that have been eslablished to continue after that time. No grants were awarded out of the Northern Church Planting Fund in 2023 but there are four applications which will be considered in the first half of 2024. Total expenditure on Impact during 2023 was £473.612, while income totallad £511.472. The main costs were architect fees (£129,000), the deposit and rent for the De Grey Rooms (£115,000), project team salaries1£73,000), wood removal (£38,000), reclaimable VAT (£34,000), and legal fees for lease agreements and Diocesan Chancellor costs (£26,000). In 2023 trading activilies amounted lo £34.000. consisting of a mixture of hiring out the De Grey Rooms and the Belfrey Hall, as well as Impa¢t merchandise and furniture reclamation sales. During the year a legacy received for Holy Communion was used to buy t￿0 new silver chalices, new silver plates, storage boxes and items of linen. which are now being used in De Grey Rooms while our older and more prgcious pieces of silverware are being repaired and then stored in York Minster for the duration of Impact. We also purchased a new keyboard to be used for worship. The rest of the legacy will be used to repair the reredos and alLgr area in the church building. The move to De Grey Rooms over the summer was a significant event. While Impact funds have covered the rent for the building. general church funds were used to invest in new staff laptops, the tiuss sel up in the ballroom and the extra desks, chairs, sofas and tables needed to use the spacè effectively. The new computers and truss have been added to the balance sheet as assets and we are planning to sell Ihe truss when we vacate the De Grey Rooms, as it should still have significant value by then. INVESTMENT POLICY The PCC took exterr7al financial advice in 2021 from CCLA Investment Management Ltd on the investment of funds restTiCted for expenditure on the Impact Project, taking account also of its reserves and funds held for other projects. We continued to follow this advice in 2023. In view of the likely timescale for expenditure of the bulk of these funds and uncertainty over market conditions in the meantime, it would be appropriate to avoid signtficant risk and keep funds in cash deposits. The PCC will authorFso the opening of additional bank deposit accounts as necessary, seeking to maximise the rate of interest consistent wilh the security of the funds and the required availability for Impact and other expenditure. RISK MANAGEMENT The PCC acknowledges its responsibility to identify, assess and manage the major risks to which it is exposed. THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 Major risks arise from a variety of aspeds of the church's internal operations and external environment, including security, health and safety, and finan￿. The PCC delegates the management of risk to the Operations Manager, the TreasLArer team and Finance Manager. and a designated Churchwarden. Through this group the PCC maintains a register of major risks, and continues lo ensure that systems and processes are in place to mitigate exposure to these risks. The risk register is held and kept up lo date by the Operations Manager. The full PCC reviews the risk register on at least an annual basis, usually every March. The Impact Project, to restore and reorder St Michael le Belfrey, holds ils own separale risk register which is managed by the Impact Board under the supeNision of the PCC. RESERVES POLICY Our policy is to keep a cash reserve equating to three months, core staffing costs. At the moment that is around £90,000. Ourlolal unrestricted net current assets at 31 December 2023 amounted to £108,047, which includes £15,000 designated by the PCC for work with children, families and students. Our reserves as at 31 December 2023 were £93,047. The PCC holds property and equipment valued at £974,714, which are included in the unrestricted reserves and could be converted into cash rf the need arose. STRUCTURE, GOVERNANCE AND MANAGEMENT The Parish of St Michael le Belfrey. York, is a parish within the Church of England as defined by canon law. Individual parishes within the Church of England do not have a separate constilution. They work within the framework of Church of England ecclesiastical law, consisting of the Parochial Church Council (Powers) Measure 1956 and the Church Representation Rules. The Belfrey received individual charitable status on 30 July 2009. St Michael le Belfrey is governed by the PCC. the members of which are either ex officio or elected by the Annual Parochial Church Meeting IAPCM) in accordance with the Church Represenlation Rules. In 2023 the church was led by the Vicar until June, by the Associate Minister and Church Wardens from June to October and thereafter by the Interim Priest-in-charge, all assisted by a Leadership Team. A team of dedicated staff and volunteers manages day-to-day activities. We are most grateful for all that these various office-holders contribute to the life and witness of the church. The only committee of the PCC required by law is the Standing Committee. This is made up of the Vicar, Associate Minister, Church Wardens, Secretary, Treasurer, and up to two elected PCC members. It has power to transact the business of the PCC between its meetings, subject to any direclions given by the Council. The full PCC meets bi-monthly and the Standing Committee meets in the intervening months, along with the various other sub-groups. Full PCC meetings tend to discuss bigger picture matters, agree formal matters including the annual budget and receive a regular Safeguarding Report, whilst the Standing Committee deals with matters of more delail. The PCC has delegaled some decision-making powers to the following sub-groups: Ihe Human Resources IHRI Group for HR matters, the Impact Project Board for the reordering of St Michael le Belfrey Church, the World Mission Team for overseeing mission partners. the Social Action Programme Board (SAPB} for social action and the implementation of the Love York Post Pandemic Fund, the Northern Church Planting Group for governance of the Northem Church Planting Furld, and G2 Council for governance of G2. All major g0Veman￿ matters are decided by the VicarlPriest-in-charge and PCC together. THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 ADMINISTRATIVE INFORMATION Parish name.. St Michael le Belfrey. York Church address: St Michael le Bewrey, High Petergate, York, Y017EN Office address: The De Grey Rooms, St Leonard's Place, York, Y017HB Charity working name: St. Michael le Belfrey PCC Registered number: 1130866 Principal address.. The Parish Centre, 11112 Minster Yard, York, Y01 7HH Independent auditors- Fawley Judge & Easton, 1 Parliament St, Hull, HU12AS Financial instilulion: Royal Bank of Scotland, 27 Park Row, Leeds, LS15QB PCC Members l Trustees The members of the PCC who served during the year were as follows.. Clergy Matthew Porter (until June) Andy Baker James CongrevfrHorn Vicky Earll Churchwardens Daniel Brookes Karon Dixon Remi Oduyemi Andrew Oldroyd Deanery Synod Daniel Brookes (until June) James Hayden John Lindley Andrew Oldroyd (from June) Tony Scott Martine Somerville Becca Tilbrook Elected representatives Lydia Baldwin Katherine Bridge Ross K&nyon {unlil April) Jog McKeogh Liv Portway Dan Tilbrook (from April) Paddy Wordsworth (until September) THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 Offlcers Secretary- Martine Somerville Treasurer Team.. Joe McKeogh (Treasurer) & Martine Somerville Electoral Roll Officer-. Izzy Pysanczyn THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 STATEMENT OF RESPONSIBILITIES OF THE PAROCHIAL CHURCH COUNCIL Law applicable to charities in England and Wales and guidance issued by the Central Board of Finance of the Church of England require the members of the Parochial Church Council to prepare financial statements which give a true and fair view of the Parochial Church Council's financial activities during the year. In preparing financial statements giving a true and fair view, the members of the Parochial Church Council should follow best practice and- select suitable aGcounting policies and then apply them consistenlly., rnake judgements and estimates that are reasonable and prudent,. slate whether the Church guidance, applicable accounting standards and statements of recommended practice have been followed, subjecl to any malerial departures disclosed and explained in the financial statements., prepare Ihe financial statements on the going concern basis unless it is inappropriate to presume that the Parochial Church Council will continue in operation. The members of the Parochial Church Council are responsible for keeping proper accounting records which disclose with reasonable accuracy al any time the financial position of the Parochial Church Council and enable them to ensure that the financial statemenls comply with the Church Accounting Regulations 2006 and the Charilies Act 2011. They are also responsible for safeguarding the assets of the Parochial Church Council and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. PROVISION OF INFORMATION TO AUDITORS In so far as the members of the PCC ar8 aware.. there is no relevant information of which the PCC'S auditors are unaware; and the members of the PCC have taken all steps that they ought to have laken to make themselves aware of any relevant audit information and to establish that the audttors are aware of that information. AUDITORS The church's fimi of auditors changed to Fawley Judge & Easton. appointed at the Annual Parochial Church Meeting on 24 April 2023. Approved by the Parochial Church Council and signed on its behalf by.. Martine Son7eNille Secretary 1810312024 io THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK INDEPENDENT AUDITOR'S REPORT TO THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT. YORK Opinlon We have au(Jiled the financial stateThenls ol Ihe PanKhial Church Council of the Ecdesia3tical Parish of St Michael le Belfrey with Sl Culhbert, York for the year ended 31 December 2023, which comprise Ihe Staternenl of Fin8nctal Activities, thè Balance Sheet, the Cash Flow Staiemenl and notès lo the finan¢ial Statements. inclutjing a sumfnary ol significant accounting policies. The financial reporting framework that has been applied in their pr8paralDn is applicable law and United Kingdorn Accounting Stand8rds, including Financial R8porting Standard 102. the Financial Reporting Stsndard appli¢abS& in Ihe UK and Republic of Ireland IUnit8d Kingdom Generally Accepl8d AGcounlin9 PFaclicel. This report is mad8 sdely to the Parochia1 Church Council Ilhe PCCI as the charity's trustses, as a body. in accordance with Part 4 01 the Ch8rilies (Accounts and Reports) Regulations 2008. Our 8udit wort( has been undertaken so that we mtght state to the PCC those matteTS W8 arè reouired lo slate to them in an audilor5' report and for no oth8r purpose. To the fullest exient perrnitted by law, we do nol a¢￿pt or assume responsibility Éo anyone other than the charity and the PCC as a body, for our audit work, for this report, or for the opinions we have formed. In our opinion the financial slatemenls.. give a true and fair vi8w ol the state of the charity's affairs as al 31 December 2023 and ol its incoming resoyrcés and application ol resources. for the year then ended.. have baen property prePa￿d in accordance Trmth United Kingdom Generally Accepted ACcoun￿'n9 Pf8Ctice", and have been prepared in accordance with the requirements of the Charities Act 2011 and Ihe Church Accounting Regulations 2006. Ba$1$ for oplnlon We conducted our audit in accx)rdartGe Myth Inlemalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities undef thosè standards a￿ furthor descfibed in the Auditors, responsibilities foi the audit of the financial statements section of our report. We a￿ independent of the charity in accordance with the ethical reqU1￿MentS that aré relevant to our audit of the financial statements in the UK. induding the FRC'S Ethical Standard, and we have fulfilled our other ethical responstbilities accordance with these r8quir8tnenls. We believe that the audit evidence we have obtained is sufficient and appropriaté to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, WÈ have concluded that the Trustees, use of thé goiro Co￿@M basis of accounting in the preparation of the fin8Thcial statements is appropriate. Based on the work we have perfonned, we have not *dent￿lled any malerial un¢èrt8inilos relating lo evenls or conditions that, individually or collectively, may cast Slgnificant doubl on the charity'5 ability lo (ontinue as ¢ng concern for a period of at least twelve months from when th8 financlal statements are authorised lor issue. Our responsibilities and thè responsibilit￿S of the T(tJsté8s with respect to 90ing concem are described in th8 rslevanl sections ol this report, THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK INDEPENDENT AUDITOR'S REPORT TO THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK Other information The PCC is responsible fo¥ the other inlonnation. The other infoimation comprises the information included in the ann￿al report. olhw than the financial stateTnent$ and our auditor8. réport Ihèreon. Our opinion on the financial statements does not cover the other inform2tion and we do not express any lorrn of assur8r￿e ¢onslusion thereon. In connection wth our audit of the finan(ial statements, our responsibility is to read the other informatlon and, in doing so. con5id8r whether the other informalion is materially tnc0nsis￿Tr( wlth the fin￿Cial statement5 or our knowledge obiained the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or appa￿nt mat8rial misststements, we are required lo determine whethgr thèra is a rnaterial misstatemenl in the finanrial statements or a material misstalernent of the other inlomation. If. based on the woth we have performed, we conclude that the￿ 13 a malerial rntsstat8m8nt of this other information. we are required to report that fact. We have nothing to report in thTrs regar(l. Matters on whi¢h w8 arè roqulred to report by ex¢8Ption We hav6 nothing to report in respeci of the following matters in ￿la￿On to which the Chaiities (Accounts aThJ Reports) Regulations 2008 require u5 to report to you il. in OUT opinion-. the inforrnatson given in th& %nancial slalements is inconsistent in any material re$pe¢t with Ihg PCCS. report., or sufficient accounting records have ¢wt béart kopl." or the financi81 ststements are not in agreement with the accounting recoids and retums-, o¥ wé hav• not received all the inforrnation and explanations wè requ1￿ for our audit. Rèsponslbllltles of the PaTo¢hlal Church Councll As explairned more lully in thè slatemont of responsibllities of the Parochial Church Council set OLrt on page 10. the PCC is re¥)onsible for thè p￿ParatIon of the financial stalements and lor being sallsfied that they give a true ond fair view. and lor such intemal control as the PCC detemilnes is ne￿sSary to enable the prepardtion ol financial statements that are Iree from material misstatement. whether due io fraud or errol. In preparing the financial slatemenls, the PCC is responsible for assessirrfJ the ability to continue as a going concem, disclosing, as applicable, matters related to ooing concem and using the golng toncem basis of accounting unless Ihe PCC oithor intènds to liqui($8t8 or to eè8s8 oper81ions. or has no realistic alteinative bul to do so. 12 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK INDEPENDENT AUDITOR'S REPORT TO THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK Audltor$' responslbilit1è5 for thè audit of the financlal $iat•m¢nts We hav8 beon appointed as auditors und9T $OCtion 144 of the Charilies Act 2011 and ￿pOrt in accordance with th8 Act and rekvant wulations made or having effect Ihereunder. Our objeclives a￿ lo oblain reasonabl8 285urance about whether the financial 51aternents as è whole arè free from material misslat8rnent. whether dLte to fraud or error, and 10 1ssue an aud5tors' ￿port that includes our opinion. R&asonabl6 assurancè is a high level of assurance. bul is not a guarantee that an audit conducted in accordance wilh ISAS IUKI will alway5 detect a material misstatement when it exists. Missiatements can arise from fraud or error and ar6 consideied malertal il, sndividually or in Ihe aggregale. they could ￿asOnablY be exp8Cted to influence Ihe economic decisions of users taken on the basis of these financial statements. Irregulèrities, i￿lL*￿1ng fraud. are instsncgs of non-complian¢è with laws and regulallons. W& deslgn pfo¢edufes in line with our responsibilitses. otsllined above, lo detecl material misslatements in respect of ITre9ularities. induding fraud. The extent to which our procedures are capable of d8tecting irregularities. induding fraud Is detailed below.. We 93ined an und8rstanding ol th81ègal and regulatory framework applicable to the charity and the aFea in whlch it operates, considere¢J the risk of acts by the charity that were contrary lo applicable laws and regulations, including fraud. We designed audit procedures lo rèspond to the risk. recognising that the risk ol not dete￿ing a materi81 misstatement due to fraud is higher than the ii5k of not delecling one resulting frorn error. as fraud may involve deliberate concealment by. lor examplo, for9ery or intentK)nal misrepresentabons, or throu9h collLt5ion. We irtentified the grealesl polenb81 fr)r fraud in the following ar8as.' extstence and ¢iming of recognibon of incofne and the posting of unusual joumals. We discussed ihese risks with mansgernent and dg8igned audil pr￿edureS as follows= to test the timing and existence of revenue, 10 review journals posted lo key control accounts or posted around the year end. to look for pot8nlial "window dressing. as well as looking al a sample throughout the year. A lurther descrfption of our r8swnsibilit¢es for the audit of the financral statements is IcKated on the Financsal Reporting Council's wèbsila at= ww.fro.org.ukJauditc>rsrasponsibilitiaS. This d8scripbon fomis part ol our auditors. ort. nathan Leath enio ry Auditor) or and on behalf of Fawley Ju ge & Ea$ton Chartereo Cert￿edA￿0Un1#￿lS Sl8tulory Audilor 1 Partl8ment Str8et 16 April 2024 East Yorkshire HU1 2AS Fawley Judge & Easton is ellglble for appoiniment as auditor of the charily I PCC by virtue of its eligibllity for appointrnent as auditor of a company under section 1212 01 ihe Companies Act 2006. 13 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT. YORK STATEMENT OF FINANCIAL ACTMTIES FOR THE Y&4R ENDED 31 DECEMBER 2023 Unrestrlcted Fund$ Deslgnated Funds Rest￿cted Fund$ Total Funds 2023 2022 Note Income and endowments from.. Donations and legacies Ineotne frorn chaiilable chureh actIv￿eS Other trading activities Inv85tments Other income 680.948 73,419 22.983 10.748 12.178 15,000 275,717 15,978 11.219 56.721 290,265 971.665 89.397 34,202 67.469 302.443 770.601 82,214 19.038 15,215 7,482 Total income 800,276 15,000 649,900 1,465,176 894,550 Expenditure on.. Raistng funds Charitab18 church 8Ctivili8s 102 793.215 6.863 965,091 6.965 1,758.306 13.843 1,680.958 Total •xp•ndl¢ure 793.317 971.954 1.765.271 1.694.801 Net incornellexpenditurel before Rains and losses 6.959 15,000 1322.0541 1300.0951 1800.2511 Net gains revaluaty'on of fixed assets 11 Nèt Incom•ll•xp8ndl￿r•l Transfer5 between lunds 6,959 15,000 1322,0541 1300.0951 1800.2511 Net movefflent In Fund$ 6,959 15,IKIO 1322,0541 1300,0951 1800.2511 Total funds brought fotward at 1 January 2023 1,057.114 8,586,533 9,643.647 10,443,898 Totsl funds carrl•d forntard at 31 December 2023 17118 £1,064,073 £15,000 £ 8,264,479 £ 9,343,552 £ 9,643,647 Tho notes on pages 17 to 30 fonn part of these financial statements. The Slaternent of Financial Activities includes all gains and kjsses in the yea¥ and all of the above amouftis relate to continuing activitses. 14 YHE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTH8ERT, YORK BALANCE SHEET FOR THE YEAR ENDED 31 DEGEMBER 2023 Unrestrl¢t¢d Fund$ Deslunated Fund$ Restrlcted Funds Total Funds 2023 2022 Note Flxed Assets Tangible fixed assets 971,026 3,688 974,714 951,565 971,026 3.868 974,714 951.565 Currenl Assets Stock Oeblrrt Cash at bank and in hand 12 13 14 513 24,265 99,804 4,990 5,136.800 3.126.035 5,503 5,160,865 3.240.639 613 6.219,971 2.5Z2.356 15,OOLI Total Current Assets 124.382 15,QOCTr 8.267.625 8.407,007 8,742,940 Current Llabllltl¢$ CreditLYs'. amounts falling within one year 15 31.335 6.834 38,169 50,858 Total current liabilitie$ 31,335 6,834 38,169 50,858 Ngt Cul￿nt Asseis 93.047 15.000 8,260,791 8.368,838 B,892,082 rotal ass6ts108s current 113bllltles 1,064,073 15,000 8.264,479 9,343,552 9,643,647 Not Ass•ts £ 1,064,073 £ 15,000 £ 8,264,479 £ 9,343,552 £ 9,643,647 The fund$ ofth¢ ¢hatlty Unrestri¢ted general fund Designated fund5 Unrostricled rovaluation reseNe fu ResI￿rIed lunds 17 753,073 753.073 15,DCKI 311.OC4) 8.264.479 74fj,114 15,000 311,000 311,000 8,586.533 18 8,264.479 Tolal Charfty Funds 1,064,073 £ 15.000 É 8.264,479 £ 9.343.5S2 £ 9,643,647 Approved by lh& Partthial Church Council on 1810￿2024 signed on ils behalf by.. Martine Somervi118 Isecretaryl Thè nots8 on pag88 17 to 30 form part of these finan¢lal $tat•m•nt$. 15 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from operating activities: Net Income for the reportlng perlod Adjusted for.. Depreciation charges Dividends and interest from investments Revaluation of fixed assets Decreasel{increase} in stocks DeGreasel{in¢rease) in debtors Increaselldecrease) in creditors 1300,095) 1800,2511 5,474 167,4691 2,625 {15,215} 14.8901 1,059,106 112,689) 180) 997,455 (28.835) Net cash provided by Opera￿n9 ￿tIvitIeS 679,437 155,699 Cash flows from inv8Sting activities- Dividends and interest from investments purchase of tangible fixed assets 67.469 128.623) 15,215 15,215 Nèt Cash provlded by investing activiti0$ 38,846 15,215 Change In cash and cash equival•nts In the reportlng period Cash and cash equivalents at the beglnnlng of the reportlng period 718,283 170,914 2,522.356 2,351,442 Cash and ¢ash equivalents at the end of the reporting perlod £ 3.240,639 £ 2,522.356 Analysls of cash and Ga$h equivalents Cash in hand No notice and notice deposits (less than 3 months) Notice deposits {more than 3 months) 364 1,122,393 2,117.882 351 640,243 1,881,762 £ 3,240,639 £ 2.522,356 Charity law requires 50parale admlnistration ol the cashflows of endowed and other restricted funds of the Gharity. This constraint has r￿t adversely affected cashflows as 81aled above. The notes on pages 17 to 30 form part of th•se finanelal stat•mènts 16 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES Basls of preparatlon The financial statemènts have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 1021 effective 1 January 2019. the Charities Act 2011, and the Church Accounting Regulations 2006. The financial statements include all transactions, assets and liabilities for which the Parochial Church Council I'lhe PCC") is responsible in law. They do not include the financial slatements of church groups that owe their main affiliation to another body, nor those Ihat are informal gatherings of church members. The PCC is a public benefit entity as defined by FRS 102. Statutory informatlon The PCC is regislered with the Charity Commission, registration number 1130866. The registered address is The Parish Centre. 11112 Minster Yard, York, Y01 7HH. Funds Unrestrioted funds represent Ihe general funds of the PCC that are not subject to any restrictions regarding their use and are available for application for the ordinary purposes of the PCC. Designated funds represent Ihos8 unrestricted general funds which have been set aside by the PCC for a particular purpose. Restricted funds represent {a) income from trusts or endowments which may be expended only on those restricled objects provided in the terms of the trust or bequest, and (b) 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. Most of the money in restricted funds is held in separate bank and Slewardship accounts and interest that arises is allocated to those restricted funds. Th8 remaining interest largely represents monies accrued from unrestricted fvnds. Income recognition All income is recognised once the PCC has entidement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably. Planned giving, collections and donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is re￿Ived. Grants and legacies are accounted for when the PCC is entitled to the use of the resources, their ultimate re￿ipt is considered reasonably certain and Ihe amounts du& are readily quantifiable. Dividends are accounted for when declared receivable, interest as and when accrued by the payer. All other income is recognised when it is ￿ceIVable. Amounts received specifically for mission are dealt with as restricted funds. All incoming resources are accounted for gross. 17 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 1. ACCOUNTING POLICIES (continued) Expendsture recognltion Liabilities are recognised as expenditure as soon as there 15 a legal or constructive obligalion committing the PCC to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably. 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 Di0￿san Freewill Offering is accounted for when due. All other expenditure is generally recognised when it is incurred and is acrnunted for gross. Fixed assets Consecrated and benefice propety is not included in the financial ststements in accordance with section 10 (21 {a) and (cl of the Charities Act 2011. Movable church fumishings 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. All expenditure incurred during the year on consecrated or benefice buildings and movable church furnishings. whether maintenance or improvement, is writt8n off. Other land and buildings held on behalf of the PCC for its own purposes are valued at market value. No depreciation is charged against such properties as they are regularly maintained to such an extent that their estimated economic lives and residual values are such that their depreciation is insignificant. At each year end an assessment 15 carried out to ascertain whether there is any indication that the properties should be written down li.e. whelh8r ils carrying amount is more than its recoverable amount). If there is no indication that a propety should be written down. it is not necessary to estimate Ihe recoverable amount. Equipment used within the church premises, The Parish Centre and Church Hall are depreciated on a straight-line basis over their estimated useful life of 4 to 10 years. Individual items of equipmenl with a purchase price of £3,000 or less are written off in the period in which they are acquired. 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 du8. Cash al bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of two years or less from the dale of acquisition or opening of the deposit or similar account. Creditors and provislons Creditors and provisions are recognised where the PCC has a present obligation resulting from past event that will probably result in the transfer of funds to a third paty and the amount due 18 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their setmement amount after allowing for any trade discounts due. Flnancial Instruments The PCC only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are inttially recognised at transaction value and subsequently measured at their settlement value. Operatlng lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against income on a straight-line basis over the period of the lease. Irrecoverable Value Added Tax The PCC is nol registered for Value Added Tax (VAT) and accordingly expenditure is shown gross of irrecoverable VAT. The VAT incurred from lime to time on certsin fabric repair and maintenance expenditure can, however, be recovered under the Listed Places of Worship Grant Scheme. Going Concern The PCC has cash resources from a large generous congregation and has also started to look for and apply for grants to help support the mission of the church. These include youth work, sludenl and 18-30s work and also grants towards the repair and reordering project (Impact). The PCC has a reasonable expectation that the church has adequate resources to continue in operational exislence for the foreseeable future. The PCC conlinue to believe the going concern basis of accounting is approprsate in preparing the financial statements. Heritage Assets The ViGarlPriest-in-Charge and Church Wardens hold on special trust for Ihe PCC silver and plate gifted to the church for ecdesiastical purposes. They date from the 17th century and therefore, there is insufficient cost information available. Due to the unique nature of these assets and their historic association with worship at the church over hundreds of years, conventional valuation lechniques are not applicable and therefore have not been valued in the financial statements. The silver and plate, 38 items In total are listed in the church's inventory and are regarded by law as inalienable assets which the PCC would require a faculty for disposal. Inspection can be arranged at reasonable times where they are located. Pensions The PCC pays employer contributions inlo a variety of pension schemes consisting of individual employee's personal pension schemes of their choice and a workplace pension scheme lo fulfil the PCC'S auto enrolmenl obligations (Church Workers Pension Fund). 19 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 1. ACCOUNTING POLICIES {continuedl Church Workers Pension Fund - Penslon Builder 2014 St Michael 18 Belfrèy PCC parlicipates in the Pension Builder Scheme sedion of Church Workers Pension Fund for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Sl Michael le Belfrey PCC and the other participating employers. CWPF has two sections.. 1. the Defined Benefits Scheme 2. the Pension Builder Schem8, which has two subsections. a deferred annuity section known as Pension Builder Classic, and, a cash balance sectiori known as Pension Builder 2014. Pension Builder Scheme Both sections of the Pension Builder Scheme are classed as defined benefit schemes. Pension Builder 2014 is a cash balance scheme that provides a lump sum that members Ljse to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discrelionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65. There is no sub-division of assets bel￿een employers in each section of the Pension Builder Scheme. The schem8 is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because il is not possible lo attribute the Pension Builder Scheme's assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs Charged to Ihe SOFA in the year are the contributions payable (2023.. £24,827 2022: £22,896). A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2022. The next valuation is due as at 31 December 2025. For the Pension Builder 2014 section, the valuation revealed a surplus of £2m on the ongoing assumptions used. There is no requirement for deficit payments at the current time. The legal structure of the scheme is such that if another employer fails, St Michael le Belfrey PCC could become responsible for paying a share of that employer's pension liabilitias. 20 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 1. ACCOUNTING POLICIES (continued) Accounting Estimates and Judgements The preparation of the financial statements requires management lo make judgements, estimates and assumptions that affect tha amounts reported. These estimales and judgements are continually reviewed and are based on experien￿ and other factors, including expectations of future events Ihat are believed lo be reasonable under the circumstances. The trustees believe Ihat the following judgements are critical due to the potential material impacl it has on the financial statements. Included within debtors are amounts received in réspect of donations towards the Impact project, the Post Pandemic fund and Church planting. These amounts have been paid by donors to Stewardship who hold the funds on trust forthe Church. The Trustees consider that Ihe income recognition criteria of entitlement, probability of receipt and measurement have all been met. The donations were therefore recognised in full in 2020 and are included in debtors at the year-end as shown in nole 13. The debtor will be released as funds are received from Stewardship over the life of the projects. Property Values The Iruslees consider that the freehold land and buildings are valued 8t their fair value in the financial statements. The valuations are undertaken by an external professional valuer who Carried out a revaluation at 4 October 2021 and the directors have used this valuation to review the fair value at 31 December 2021. 21 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY wifH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ICONTINUEO} Unr•slrlcted Deslgnated Funds Funds Restrlcted Funds Total Funds 2023 2022 2. Donations and 16gaclès Plann8d giving Tax rècoverable Collections lopen platel Legacies Impact donations General donations 496.364 81.493 13.047 60,535 47,558 556.899 129.051 13,047 518.481 116.941 5.797 500 80,793 48,089 145,271 22,353 145,271 127,397 90,044 15,000 680.948 t 15,000 £ 275,717 £ 971,665 £ 770.601 In 2022. in¢om& from donalons and le9acies amounting to £569,734 related lo unrestricted fvnds and £200,867 related lo restricted funds. 3. Income from charftable church actlvltie8 Events Other income frorn church activities 62.122 11.297 4,965 11,013 67,087 22,310 67.859 14.355 73.419 £ 15,978 £ 89.397 £ 82.214 In 2022, income from charitable church activities amounting to £80,083 related tr> unrestricted funds and £2,131 related lo restricted lunds. 4. Other trading aetivit4•$ Salès Hire of facilltles Music 6,103 16,880 11,219 17,322 16,880 7,450 11.558 30 22,983 £ 11,219 £ 34,202 £ 19,038 In 2022. all income from other trading a￿"￿tIeS related to unrestricte(l knnds. 5. Invèstmènt incomè Dlvidends received Dep)sil interest 1,183 55.538 1,183 fj6,286 1,179 14,036 10,748 10,748 £ 56,721 £ 67,469 £ 15,215 In 2022, investrnent income amounting to £4.645 related to unrestricted funds and £10,570 related to restricted funds. The PCC also receives ineome from 2,212 Charities Official Investment Fund shares. However, the value of the Shares h89 not been included wthin the balance sheet because, alth¢xJgh Ihè PCC receives the income, the legal title belongs to two charities associated to the PCC. 6. Othèr Income otheT income Grants 5,012 7,166 5,017 297.42fj 4,982 2,500 290,260 12,178 £ 290,265 £ 302.443 £ 7.482 In 2022, all other inco￿& rèlated to unrestricted funds. Total Income 800,276 £ 15,000 £ 649,900 £ 1,46S,176 £ 894,550 22 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT. YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ICONTINUEDI Unrestricted Restri¢ted Funds Fund$ Total 2023 2022 7. Analysls of expendlture Raising funds 102 £ 6,863 £ 6.965 £ 13,843 Charitsble church activities Missionary and charitable giving (note 8) Grants Overseas mission Home mission 223,400 223,400 38,301 25.063 200,761 48,341 24,574 38,301 12,740 12,323 51.041 176.544 68.556 121.878 2,407 20,857 308.158 34.825 2.049 3,300 3,600 235,723 3.000 58.007 320,637 296 355 282,157 38,293 26,623 286,764 179,544 126,563 442,515 2,703 21,212 590,315 73,118 28,672 3,300 3.600 273,676 179,544 97.033 504,121 2,611 22,553 534,011 57,383 3,042 4,200 2,784 Ministrr. Diocesan free will offering Church - general upkeep and services Church - premises Music Events Staff salaries, pensions and other staffing costs Office and administration costs Finance costs Audit fee Outsourced accountancy, taxation and payroll £ 793,215 £ 965,091 £ 1,758.306 £ 1,680,958 Totsl 793,317 £ 971.954 £ 1,765,271 £ 1.694,801 In 2022, expendilure 01 £860,433 related to unrestricted funds and £834,368 related to restricted fvnds. 23 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ICONTINUEDI Unrestricted Funds Restricted Funds Totsl 2023 2022 8. Mlsslon and charltable grants Grants Acts 435 Ukrainian refugees Church Planting Grant Hardship fund Small grants fund PPF PPF Belfrey Group Match Funding PPF Calalyser Grant5 PPF Charity Donations PPF Out of York Grants One-off Restricted Donations 780 780 1,550 1,017 135,000 100 59,000 831 67,000 783 100,000 130 50,000 4,707 67,000 783 100.000 130 50,000 4.707 3.263 223,400 223,400 200,761 Overseas mission Blacker Support Wycliffe {Evesl Flel¢her Support Homer Support Roberts Support Bayfords Wilson International Students Missionary Discretionary Global Connections 12,260 9,000 8,364 6,120 12,260 9,000 8,364 6,120 11.388 9,000 7,371 6.120 9,408 2.400 2.040 120 229 265 2,040 239 13 265 2,040 239 13 265 38.301 38,301 48,341 Hon￿ mission Church Missions Friends International Warren Furman Mission Paul Myers Mission Restore Riding Lights Yoyo mission giving Evangelism Cafes Women's Ministry Sludenl Mission Children and Family OLtlreaeh Youth Outreach Students International Mission Students Social Action Evangelism Ministry CommunitylFamllies Outreach Youth Outreach Miscellaneous Alpha student Wpha G2 Giving G2 Giving to Fusion G2 Outreach Events CAP contribution Funeral Collection 20 2,000 20 2.000 236 2,000 1,500 2.000 1,000 3.000 3,000 91 $82 216 285 436 50 41 250 491 17 1,966 1,966 2,845 2.963 2,000 1.000 3,000 1,000 160 2,000 1.000 3.000 1.000 160 1,683 338 1,683 338 149 149 53 174 53 174 2,021 825 2.021 825 2.841 2.841 60 7.200 539 60 7,200 539 1,200 405 12,740 12.323 25,063 26.540 51,041 £ 235,723 £286,764 £275.642 In 2022. all Grants were related to restricted funds. all Overseas Mission were related to unrestricted funds. Home Mission was made up of £16,498 relating to unrestricted funds and £8.076 relating to reslricled funds. 24 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 {CONTINUED 9. Not Incomg forth8 year This is slated after charging.. Staff pension contribution Depre¢ialion Auditors. remuneration- audit of financial statements 24.827 5.474 3.300 22,896 2,625 4,200 10. Staff costs and emoluments Total staff costs were as follows.. W8ge5 and salaries Social security costs Other pension costs 512,534 33.820 24,827 465.628 30,679 22,896 £ 571,181 £ 519,203 During the year tha PCC employed no who eamed mor9 than £60.000. The average head count Inumber of staff employed) during thè yèar was 29 12022- 291. The average number of employees calculated on the basis Of full-time equivalents was 1912022- 191 The PCC considers its kèy management personnel to comprise only ol the PCC Members ITru51ees1. They receive no r8muner8tion in their capacity as trustees but may be employed lo carry out their roles wlhin the church. Tha total of remuneration received by trustees and key management personnel for their services lo the church amountèd to £2,47312022 - £5,580). 11. Tangible fixed •$$èts Freehold Land & Buildings Motor Vehicles Church Equipment Total C05t or valuab.on At l January 2023 Revaluation in year Disposal in year Additions Revaluation 950.000 12,850 83,891 1.046.741 26.823 28.623 Al 31 December 2023 950,000 12,850 112.514 1.075.364 Dep￿CiatiOn At 1 January 2023 Charoe for year Disposal in year 12,850 82,328 5,474 95,176 5,474 Al 31 December 2023 12,850 87,800 100,650 Net book value At 31 Dècèmber 2023 950,000 £ £ 24.714 £ 974,714 At 31 De¢embei 2022 950,000 £ 1,565 £ 951,$65 The freehold land 8nd bulldin9s, comprising 13 Hempland Drive, 28 Langdale Avenue and the Church Hall were revalued 814th October 2021 by Steph&nsons Estate A9enis. and are included al iheir revised market values of £450.OOCt. £210.000 ar￿ £290.000 restsectivelv. If the freehold property had not been included al valuatK)n, they would have b&en included Ltnder thg hislori¢al cost convention as follows.. 2023 2022 Hlstorf¢81 wsl at 31 Dfjcembor 2023 £ 639,000 £ 839.000 25 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST ¢UTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 {CONTINUED) 12. stock Impact fumiture- Chopping Board Impact fumiture- Holding Cross Impact fumiture- Footstool Impact Merchandise - Brew Cup8 Impact M8Fchandisa- Keep Cup Impact Merchandise - Chilly Water Bottle Impacl MeTchandise- Cookie Cutters Bookstall stock 2023 2022 120 170 150 883 1,252 1,409 1,006 513 £ 613 5,503 £ At 31 De¢embèr 2023 £514 related to unrestrFCted fvnds and Ihe rest restricted funds. At 31 December 2022 all stock related lo the unrestricted lunds. 613 13. Debtors Trade debtors Income tax recoverable Prepayments and accrued income A¢¢rued Fncomè- Church Planting. Post Pandemic and Impact grants wlhin one year Accrued income- Church Planting, Post Pandemic & Impact granls more than one year 375 10,635 124,855 3,398,000 1,627,000 55 15,511 24,405 2,348,000 3.832,000 £ 5,160,865 £ 6,219.971 At 31 December 2023 £5,136.599.57 12022 £6.194.867) of debtors related lo reslrl¢t¢d funds, the balance of debtors related to the unrestricted funds. 2023 2022 14. Cash a¢ bank and In hand Bank balances Cash balances 3.240,275 364 2,522.005 351 £ 3.240,639 £ 2,522,356 At 31 Decemb&r 2023 £99604 {2022 - £117,340) of cash and bank balances related to unrestricted funds and £15,000 12022- Nlll r&lated to desionated funds £3.126,03312022 - £2.405,0161 related to restricted fL¢nds. 2023 2022 1S. Credltors: amounts falllng due wlthin one year Trade creditors Accruals and deferred income Tax and stscial security credltor Pension creditors 5.316 22,401 10,090 362 14.181 28,846 7,554 277 38,169 £ 50,858 At 31 December 2023 £6.83412022- £13,350) of Creditors related to restrl¢ted funds. the balance of ¢r8d1t0￿ reSated to unrestrieted funds. 2023 2022 Deferred income al 1 January 2023 Resources deferred during the year Amounts released from previous periods 5,822 5,684 15,822 6,491 5.822 {6.491) 5,684 £ 5.822 Deferred income consists of grant and contract income where a time condition is included in the initial offer and it is speethed Bs being for use after the year end. Deferred income for 2022 and 2023 was income in advance for church events wher& an èarlv bifd discount was offered and also rent income Daid for fvture DerN)d8. 26 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEM8eR 2023 ICONTINUEDI 16. Commttments under operatlng leases At 31 Decernber 2021 the PCC had annual commitrwnts under nonrter r2CEives set Stalutcry par￿h￿al ¢e88 for Ott￿latin9 atweddings and funerals, these are acwunted for to the loral Dlocese. DU￿n9 the y88r a total of £84,690 (including gift aid) 12022 £61.9431 was donaled to the PCC by PCC Mernbers ltrusteesl. irduding dos& tsml memb6￿. Thls also indudes donatlon$ towards the Impact project. During the year expgn*5 of £4,491.3712022-£3,787.411 wère incurred by PCC members and c108e lamilyknwards running oflhe church and mini%ty and not for se￿l¢e5 to Ihe PCC. 29 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CVTHBERT. YORK 21. Comparative Statement of Fln•n¢i81 A¢tlvltlè$ STATEMENT OF FINANCIAL ACTIVlnES FOR THE YEAR ENDED 31 DECEMBER 2022 Unr¢strlct8d Funds Restrlcted Funds Total Funds 2022 2021 In¢ome and endowment5 from: Donations and legacAes Income from charitable church actlvilies Other trading activities Investments Other income 569,734 80,083 19,038 4,645 7.482 200,867 2,131 770,601 82,214 19,038 15,215 7.462 814.374 56,531 10,474 7,751 13,926 10,570 Total Income 680,982 213,568 894,550 903,056 Expèndlture on: Raising funds Charitable church activities 253 860,180 13,590 820.778 13,843 1,680,958 764 1,153.715 Total expèndlture 860,433 834,368 1,694,801 1,154,479 Not Incom¢lloxpendliur•} bofor8 oalns and losse$ 1179.4611 1620,8001 1800.251} 1251,4231 155,000 Nel gains revaluation of fixed assets Net Sncomellexpgndltur•l Transfers beNveen funds 1179.4511 2,981 1620.8001 12.9811 1800,251} 196,4231 Net movement In Funds {176,470} 1623,7811 1800,2511 196.4231 Total fundg brought forward at 1 January 2022 1,233,584 9.210.314 10,443,898 10,540,321 Total funds carried forward at 31 Dee•mbèr 2022 £1.057.114 £ 8,$86,$33 £ 9,643.647 £10.443.898 30