The Parochial Church Council of the Ecclesiastical Parish of
Southbourne with West Thorney
St John’s Church, Stein Road, Southbourne, Emsworth PO10 8LB
Registered Charity no. 1130876
Report of the Trustees and Unaudited Financial Statements for the year ended 31st December 2022
| Contents | Page |
|---|---|
| Report of the Trustees | 2 - 6 |
| Independent Examiner’s Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10 - 13 |
Website: https://stjohnssouthbourne.com/ Incumbent: Rev. Thomas I. Robson Independent examiner: Eric Thompson Bankers: Lloyds Bank plc
PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Report of the Trustees for the Year Ended 31[st] December 2022
Our aims and purposes as a charity
The PCC has the responsibility of co-operating with the incumbent Rev. Thomas Robson in:
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The promotion of the gospel of the Lord Jesus Christ according to the doctrines and practices of the Church of England;
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Promoting in the parish the whole mission of the church, pastoral, social, evangelistic and ecumenical.
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Working together to make Christ known;
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Practical support and care for people in the parish, from the youngest to the eldest, irrespective of level of need or ability to pay;
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Providing financial support those in need and supporting those in the mission field in the UK and overseas.
What we planned to do to achieve our charitable objects
When planning our activities for the year, our incumbent and the PCC have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The council has complied with the duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016, fully recognising its duty to have due regard to House of Bishops' guidance on safeguarding children and vulnerable adults.
For this year we discussed and planned the following objectives and activities to fulfil our aims:
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Enabling as many people as possible to worship at our church
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Enabling as many people as possible to become part of our parish community
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• Teaching, baptising and nurturing new and existing believers
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Considering how our services can offer a welcome to those exploring and new to faith
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• Praying together for our local community and the wider world • Offering worship and prayer, learning about the Gospel, in small group situations • Offering a welcome to members of the local community in our church centre through Coffee Connect, our community café and our warm space
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Provision of pastoral care for people living in the parish
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Giving grants to missionary organisations
Attendance at worship
Following extensive building works in 2021, we were delighted to reopen the church building for worship in January 2022. Throughout the year we have offered public worship on Sundays. Along with a traditional Sunday morning service, we also have a 4pm service which offers a relaxed space for families to worship.
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Report of the Trustees for the Year Ended 31[st] December 2022
St John’s 10am service, with an average attendance of 60 people, offers an opportunity for worship, biblical teaching and prayer each week. We are delighted to see the growing 4pm service led by our Family and Youth Ministers, Richard and Kim Carter. The family service is popular with local families, average attendance 100, and we welcome those who are exploring Christian faith. During the year we have expanded the 4pm offering to include a separate group for those in school years 6, 7 and 8 and hope to add an additional group for younger children in 2023.
We have a small number of younger teenagers within the church community. As the numbers are not sufficient for us to run a sustainable group we have worked with other churches to find opportunities for them to explore their faith.
We were able to bring our two congregations together for worship during the year with joint services on Easter Sunday, Harvest and at Christmas. We recognise that the two services meet the needs of their individual congregations, and it was a joy to bring the church family together for worship.
In addition to worship at St John’s we have a small congregation, about 15 people, who worship at St Nicholas church, a chapel of ease on the army base at Thorney Island. We are grateful to army padres who support the service at this historic church on the shore of Chichester Harbour.
Teaching, baptising and nurturing new and existing believers
We celebrated the baptism of 2 children and confirmation of 1 adult from the 4pm congregation; the church family were encouraged to see these families growing in their Christian journeys. In addition, there were 11 baptisms at St Nicholas and, across the two churches, 9 weddings, 2 wedding blessings, 6 funerals and 3 burial of ashes.
A greater number of the church family have been involved in leading various aspects of worship, lending great encouragement to those involved, as well as the whole congregation. We have one lay reader and a team of four authorised lay ministers and continue to seek opportunities for church members to use their gifts within the life of our community.
We have 8 small groups, where members of the church meet together for Bible study, prayer and fellowship. These groups are important in nurturing and growing faith. We also have prayer groups meeting regularly, both face-to-face and on Zoom, supporting the needs of the parish and the wider needs of the country and our mission partners.
We are keen to promote opportunities for families and young people to meet with others to grow their faith; we continue to encourage them to join with other members of the church in attending New Wine and taking part in the diocesan May Camp.
Evangelism and outreach
Our focus on outreach and mission this year has been to local families, and the wider community through Coffee Connect, our community coffee shop, and our warm space. Prior to the pandemic we welcomed the local community to share the use of the centre; with the lifting of covid restrictions these activities gradually resumed through the year.
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Report of the Trustees for the Year Ended 31[st] December 2022
Our toddler group ran throughout the year, providing an opportunity for parents and carers to meet with others and for the children to play in a safe space. On reopening, the numbers attending were low but have continued to grow through the year with average attendance currently of twenty.
0ur Friday Fellowship group offers a space for families to meet and share a meal on Friday after school. There are activities for children and an opportunity for parents and carers to meet, enjoy each other’s company and have faith conversations. This is a popular group with an average attendance of 30 for each session.
Coffee Connect, our community café, reopened on 1st March and celebrated its 10th birthday in May 2022. The café is open three days a week from 9am to 12pm, and provides a friendly meeting place for those in the local community. In November we expanded our offering as a warm space, extending our opening to 1pm with a soup lunch. The warm space has not been used as we initially imagined but has provided an opportunity for those living alone and in difficult circumstances to share a meal with others.
Following a successful fundraising campaign, we were able to replace the broken lift in the Centre over the summer. This new lift was welcomed by the toddlers group who meet in the upstairs hall and enables the less mobile to attend events held upstairs. We are grateful to Bernard Sunley Foundation, Chichester District Council, The Hobson Charity, Lennox Trust, Rowan Bentall Charitable Trust, Sussex Community Foundation and a local family trust for their support in raising funds for this work.
Following the reinstatement of the lift the monthly film club restarted in the upstairs hall in the autumn. This has proved a popular event with an average attendance of 25, including church members and members of the local community.
Our Family and Youth ministers work with our local primary and infants’ schools, leading a monthly assembly. Kim Carter is a governor of Southbourne Infants School.
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Report of the Trustees for the Year Ended 31[st] December 2022
Community Events and Service
For the first time since the pandemic we were able to hold community services within the church. We were able to offer the church as a focus for the community in September to mark the passing of Queen Elizabeth II; we hosted a book of condolence, held a service to mark the eve of the funeral and showed the funeral service on the screen in church.
In November we hosted a Remembrance Service with the local community. The church was full, with a strong representation from the uniformed organisations.
We held a range of events through December including the ‘Lighting of the Tree’ with a ‘Follow the Star Trail’, donkeys and carols, a nativity service, carols by candlelight and services for Christmas Eve and Christmas morning. These events were attended by approximately 450 people.
Financial Report
[st] December 2022.
Total income for 2022 declined to £ 206k, despite including higher levels of grants received (in connection with fundraising for the replacement of the lift in the centre, which was completed during the year) and some exceptional other income from insurance claims of around £ 8k. This reflects a decline in core donations which is perhaps to be expected given intensifying cost of living pressures and higher inflation.
Total expenditure increased substantially in comparison to 2021 to £ 211k, reflecting spending on the new lift and higher repairs and maintenance costs on buildings.
The resulting deficit of £ 5k was manageable, however as inflation and high cost of living is continuing to put pressure on donors, the financial outlook for 2023 looks challenging.
Unrestricted funds registered a small surplus (£ 1k) whereas restricted funds incurred a deficit of £6k. This reflects ongoing spending on our Families and Youth activities, which are a priority, and a slowdown in income received by the Family & Youth fund.
The PCC has established a breakeven budget for 2023, with plans to increase spending in the areas of Families & Youth, Love Southbourne, training & development and mission giving. In the light of likely further declines in income, plans are to curtail spending on maintenance and repairs in order to focus resources on the PCC’s core objectives.
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Report of the Trustees for the Year Ended 31[st] December 2022
We are most grateful to the many church members who give sacrificially to meet the costs incurred by the PCC, the bulk of which are making Parish Share contributions to the Diocese (to meet ministry costs, salaries, housing, etc.), and to pay staff salaries.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Reserves
The trustees have a policy to hold cash reserves of at least £ 25,000 to cover liquidity needs.
Trustees’ Responsibilities
Charity law requires the trustees to prepare financial statements for each accounting year which give a true and fair view of the state of the charity and of its income and expenditure for the year. The trustees are required to:
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Select suitable accounting policies and apply them consistently
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Make judgements and estimates that are reasonable and prudent
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State whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts.
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Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business.
We are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the PCC’s financial position and enable us to ensure that the financial statements comply with the Charities Act 2011. We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities.
This report was approved the Parochial Church Council on 30[th] March 2023 and signed on its behalf by Rev. Thomas I. Robson, Chairman.
- / signed: Thomas I. Robson /
Rev. Thomas I. Robson, Chairman
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INDEPENDENT EXAMINER'S REPORT
I have examined the accounts for the year ended 31[st] December 2022 on pages 1 to 13 which have been prepared on the basis of the accounting policies set out on page 10.
Respective Responsibilities of Directors/Trustees and Examiner
The trustees of the charity are responsible for the preparation of accounts; they consider that the audit requirements under section 144 of the Charities Act 2011 do not apply but that an independent examination is needed. I have been appointed to conduct an Independent Examination required by section 145 of the Charities Act 2011 and to report in accordance with the regulations made under section 145 of that Act. It is my responsibility to examine the accounts, without performing an audit, and to report to the trustees.
Having satisfied myself that the charity is not subject to audit and is eligible for independent examination, it is my responsibility to:
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(1) examine the accounts under section 145 of the Charities Act 2011;
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(2) follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011; and
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(3) state whether particular matters have come to my attention.
Basis of Examiner's Statement
This report is in respect of an examination carried out under section 145 of the Charities Act 2011, and in accordance with the general directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes a review of the accounts and making such enquiries as are necessary for the purpose of this report. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.
Independent Examiner's Statement
Based on my examination, no matter has come to my attention which gives me reasonable cause to believe that in any material respect, accounting records have not been kept in accordance with section 130 of the Charities Act 2011, or that the accounts presented do not accord with those records, or comply with the accounting requirements of the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view, which is not a matter considered as part of an independent examination.
No matter has come to my notice in connection with my examination to which, in my opinion, attention should be drawn to enable a proper understanding of the accounts.
/ signed: Eric J. Thompson /
Mr. Eric J. Thompson 12 Kingsey Avenue Emsworth Hampshire PO10 7HP
3[rd] April 2023
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Statement of Financial Activities
| Year ended 31st December 2022 | Year ended 31st December 2022 | Year ended 31st December 2022 | Year ended 31st December 2021 | Year ended 31st December 2021 | Year ended 31st December 2021 | |
|---|---|---|---|---|---|---|
| Notes | Unrestricted funds |
Restricted funds |
Total Funds |
Unrestricted funds |
Restricted funds |
Total Funds |
| Income from: Donations Grants 2 Other activities 3 Investments 4 Other income 5 Total income |
||||||
| £ 136,138 £ 0 £ 4,924 £ 1,262 £ 9,498 £ 151,822 |
£ 11,825 £ 38,615 £ 3,518 £ 33 £ 0 £ 53,991 |
£ 147,963 £ 38,615 £ 8,442 £ 1,295 £ 9,498 |
£ 174,077 £ 0 £ 3,935 £ 43 £ 168 £ 178,223 |
£ 16,525 £ 15,000 £ 0 £ 6,182 £ 0 £ 37,707 |
£ 190,602 £ 15,000 £ 3,935 £ 6,225 £ 168 |
|
| £ 205,813 |
£ 215,930 |
|||||
| Expenditure on: Charitable activities 6 Total expenditure |
||||||
| £ 150,748 £ 150,748 |
£ 59,869 £ 59,869 |
£ 210,617 |
£ 165,089 £ 165,089 |
£ 26,704 £ 26,704 |
£ 191,793 |
|
| £ 210,617 |
£ 191,793 |
|||||
| NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Prior year adjustment 7 Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
£ 1,074 |
£ (5,878) |
£ (4,804) |
£ 13,134 |
£ 11,003 |
£ 24,137 |
| £ 4,780 £ 94,544 £ 112,458 |
£ 3,292 £ 46,737 £ 61,032 |
£ 8,072 £ 141,281 |
||||
| £ 112,458 £ 113,532 |
£ 61,032 £ 55,154 |
£ 173,490 |
||||
| £ 168,686 |
£ 173,490 |
The notes on pages 10 to 13 form part of these accounts.
Page 8 of 13
PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Balance Sheet At 31[st] December 2022
| Notes FIXED ASSETS 8 |
Unrestricted funds 0 £ 0 |
Restricted funds 23,653 £ 23,653 |
31/12/2022 Total Funds 23,653 £ 23,653 |
31/12/2021 Total Funds 26,025 |
|---|---|---|---|---|
| £ 26,025 |
||||
| CURRENT ASSETS Debtors 9 Cash at bank Total current assets |
||||
| £ 6,790 £ 107,781 £ 114,571 |
£ 1,500 £ 30,001 £ 31,501 |
£ 8,290 £ 137,782 £ 146,072 |
£ 8,072 £ 139,393 |
|
| £ 147,465 |
||||
| CREDITORS Amounts falling due within one year 10 |
||||
| £ 1,039 |
£ 0 |
£ 1,039 |
£ 0 |
|
| NET CURRENT ASSETS/(LIABILITIES) | £ 113,532 |
£ 31,501 |
£ 145,033 |
£ 147,465 |
| TOTAL NET ASSETS | £ 113,532 |
£ 55,154 |
£ 168,686 |
£ 173,490 |
| FUNDS Unrestricted funds Restricted funds 11 TOTAL FUNDS |
||||
| £ 113,532 £ 55,154 £ 168,686 |
£ 112,458 £ 61,032 |
|||
| £ 173,490 |
In accordance with section 145 of the Charities Act 2011 the accounts have been examined by an independent examiner whose report forms part of this document.
The financial statements on pages 8 and 9 and the notes on pages10 to 13 were approved by the Parochial Church Council on 30[th] March 2023 and signed on its behalf by:
Rev. T.I. Robson / signed: Thomas I. Robson / Chairman Mr. I.C. Maclennan / signed: Ian C. Maclennan / Treasurer Mr. T.A.E. Marsden / signed: T.A.E. Marsden / Churchwarden
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Notes to the Financial Statements for the Year Ended 31[st] December 2022
1. Accounting Policies
1.1 Accounting Convention
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value. The financial statements have been prepared under the Church Accounting Regulations 2006 as far as currently applicable, in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) issued in October 2019 (SORP 2019 (FRS 102)), the Financial Reporting Standard applicable in the UK (FRS 102) and the Charities Act 2011. Under FRS 102, the PCC falls within the definition of a public benefit charity.
1.2 Income
Donations and planned giving are recognised when received. Income tax recoverable on Gift Aid donations is recognised when income is receivable, provided that income tax is reasonably certain to be recovered.
Grants are recognised when the conditions for receipt have been met.
Investment income is accounted for in the period in which it is earned and when the amount can be measured reliably.
Other income is accounted for on a receipts basis.
1.3 Expenditure
Liabilities are recognised as expenditure as soon as their is a legal or constructive obligation committing the PCC to that expenditure. Accordingly, accruals, creditors and provisions are recognised where the church has a present obligation and where the future outflow of funds is probable.
Grants and donations for the financial year are accounted for when a decision has been taken to support a particular ministry.
The PCC provides a contributory defined contributions scheme for its employees, in line with current legislation.
1.4 Fund accounting
Unrestricted funds represent the funds of the PCC that are not subject to any restriction on their use.
Restricted funds are funds which have been donated for specific purposes. The purpose and use of the restricted funds are set out in Note 11 below.
1.5
Consecrated and beneficed property is excluded from the financial statements in accordance with section 10(2) of the Charities Act 2011. No value is placed on assets held by the churchwardens on special trust for the PCC and which require a faculty for disposal, since the PCC considers this to be inalienable property. All expenditure incurred during the
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Notes to the Financial Statements for the Year Ended 31[st] December 2022
year on consecrated and beneficed buildings and movable church assets, whether maintenance or improvement, is written off when incurred.
Other tangible fixed assets have written off, in view of their low value.
1.6 Current assets
Debtors represent amounts due to the PCC and prepayments. They are recognised at either the settlement or prepaid amount.
Cash at bank comprises bank current accounts and cash-equivalent bank deposits.
1.7 Taxation
The PCC, as a registered charity, is generally not liable to taxation on its surplus or capital gains.
1.8
The PCC has taken advantage of the exemption provided by the FRS 102 SORP and has not prepared a Cash Flow Statement for the year.
1.9 Going concern
After making appropriate enquiries, the PCC members have a reasonable expectation that the PCC has adequate resources to continue in operational existence for the next twelve months. For this reason the PCC has continued to adopt the going concern basis in preparing the financial statements.
2. Grants
The following grants were received during the year. All are restricted to the use indicated.
| Grantor | Amount (£) | Restricted to | |
|---|---|---|---|
| Chichester District Council | 5,000 | Lift | |
| Hobson Charity | 5,000 | Lift | |
| Rowan Bentall Trust | 250 | Lift | |
| Bernard SunleyCharity | 5,000 | Lift | |
| The Lennox Trust | 1,000 | Lift | |
| Sussex CommunityFoundation | 5,000 | Lift | |
| Joseph Rank Trust | 10,000 | Families & Youth | |
| Chichester Diocesan Board of Finance | 7,075 | Energy | |
| Chichester Diocesan Board of Finance | 290 | Youth Support | |
| Total | 38,615 |
3. Other activities
Income from other activities was mainly fees charged for weddings and funerals held at our churches, hire charges from other users of our premises and income from certain social events.
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Notes to the Financial Statements for the Year Ended 31[st] December 2022
4. Investments
Investment income arose from interest paid on deposit balances, mainly by CCLA.
5. Other income
Other income includes insurance claims totalling £ 8,385 paid by the PCC's insurance company.
6. Expenditure on charitable activities
| 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | |
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
| Diocesan Parish Share | 76,967 | 0 | 76,967 | 69,800 | 0 | 69,800 |
| Staf salaries, NICs, pensions | 13,167 | 22,381 | 35,548 | 10,154 | 22,792 | 32,946 |
| Maintenance & repairs | 30,687 | 24,350 | 55,037 | 54,252 | 0 | 54,252 |
| Church running costs | 8,035 | 2,073 | 10,108 | 10,021 | 185 | 10,206 |
| Mission & Love Southbourne | 8,401 | 90 | 8,491 | 7,735 | 0 | 7,735 |
| Ofce & general administration | 5,612 | 2,000 | 7,612 | 5,602 | 0 | 5,602 |
| Family & Youth work | 0 | 4,678 | 4,678 | 0 | 3,727 | 3,727 |
| Clergy and other expenses | 4,439 | 0 | 4,439 | 1,841 | 0 | 1,841 |
| Investment losses - unrealised | 0 | 2,372 | 2,372 | 0 | 0 | 0 |
| Specifc gifts - restricted | 0 | 1,925 | 1,925 | 0 | 0 | 0 |
| Cofee Connect expenses | 1,465 | 0 | 1,465 | 705 | 0 | 705 |
| Other expense | 1,975 | 0 | 1,975 | 4,979 | 0 | 4,979 |
| Total | 150,748 | 59,869 | 210,617 | 165,089 | 26,704 | 191,793 |
The PCC employs four staff. No member of staff received more than £ 60,000 in total salary and benefits.
7. Prior year adjustment
This year the PCC changed its accounting convention from the receipts and payments method to full accrual accounting. As a result of this, adjustments were necessary to record a debtor outstanding at the beginning of the period, largely relating to Gift Aid receivable from HMRC. The amounts noted were added to reserves to adjust for the inclusion of this debtor, which relates to 2021.
8. Fixed assets
Fixed assets consist of 446.22 accumulation shares in the CBF Church of England Investment Fund. These make up the bulk of the Timothy Fund, which is a restricted fund of the PCC which exists to encourage cross cultural evangelism by church members.
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PCC of Southbourne with West Thorney Registered Charity Number: 1130876
Notes to the Financial Statements for the Year Ended 31[st] December 2022
9. Debtors
| 2022 | 2021 | |
|---|---|---|
| Gift Aid receivable from HMRC | £ 7,540 |
£ 8,072 |
| Outstanding collections and income | £ 703 |
£ 0 |
| Other | £ 47 |
£ 0 |
| TOTAL | £ 8,290 |
£ 8,072 |
10. Creditors
| 2022 | 2021 | |
|---|---|---|
| Charitable gifts outstanding | £ 873 |
£ 0 |
| Expenses | £ 123 |
£ 0 |
| Supplier invoice | £ 43 |
£ 0 |
| TOTAL | £ 1,039 |
£ 0 |
11. Restricted funds
The following table lists all of the PCC’s restricted funds, along with income and expenditure during the year.
| Balance b/f | Income | Expenditure | Balance c/f | |
|---|---|---|---|---|
| Timothy Fund | £ 28,570 |
£ 33 |
£ 2,372 |
£ 26,231 |
| St. Nicholas Repair & Renovation | £ 8,467 |
£ 3,659 |
£ 0 |
£ 12,126 |
| Family & Children’s Worker Fund | £ 22,903 |
£ 14,859 |
£ 27,059 |
£ 10,703 |
| Mark’s Bench Fund | £ 1,092 |
£ 0 |
£ 0 |
£ 1,092 |
| Lift Replacement Fund | £ 0 |
£ 24,350 |
£ 24,350 |
£ 0 |
| Energy Fund | £ 0 |
£ 7,075 |
£ 2,073 |
£ 5,002 |
| Other Restricted | £ 0 |
£ 4,015 |
£ 4,015 |
£ 0 |
| Total Restricted | £ 61,032 |
£ 53,991 |
£ 59,869 |
£ 55,154 |
12.
No trustee was remunerated for being a trustee. Expenses incurred in the normal course of the PCC’s activities were reimbursed, in particular where a trustee purchased items to be used at church activities and events.
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