REGISTERED CHARITY NUMBER: 1130891 **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Trustees Annual Report and Unaudited Financial Statements** **31st December 2021** ## **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Annual Report and Financial Statements** ## **Year ended 31st December 2021** ||**Page**| |---|---| |Trustees' annual report|3| |Independent examiner's report to the trustees|6| |Statement of financial activities|7| |Statement of financial position|8| |Notes to the financial statements|9| 2 **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Trustees Annual Report** ## **Year ended 31st December 2021** ## **ADMINISTRATIVE INFORMATION** St Peter & St Paul Church, Shepton Mallet is situated in Somerset and is part of the Diocese of Bath and Wells within the Church of England. The correspondence address is Peter Street Rooms, Peter Street, Shepton Mallet, Somerset, BA4 5BL. The Parochial Church Council (PCC) is a Registered Charity (Number 1130891). PCC members (trustees) who served during the period were as follows: |Rector|Rev. Jonathan Hunter Dunn| |---|---| |Churchwardens|Vaughan Ives, Nick Bennett| |Lay Chairperson|David Crisfield| |Treasurer|John Knight| |Secretary|Robert Goodhand| |Deanery Synod|Suzi Mackenzie, and from April Chris Lord| |Elected Members|Wendi Davis, Stephen Jarrett, Cliff Brown, Steve Bruce-Jones, Moira Knight| to April Sophie Jarrett from April Ros Baldwin ## **Independent Examiner** Simone Paull (ACMA) ## **Structure, governance and management** The method of appointment of PCC members is set out in the Church Representation Rules. All Church attendees are encouraged to register on the Electoral Roll and stand for election to the PCC. ## **Objectives and activities** Shepton Mallet PCC has the responsibility of co-operating with the incumbent in promoting in the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for the St Peter & St Paul's Church and associated property. ## **Church Attendance** There were 116 parishioners on the Church Electoral Role (Oct 2021). Declared Church membership as of October 2021 was 114. Average, in-church, attendance when restrictions permitted was 62 and there was an average of 21 connections listening on-line during the same period. We conducted 2 Baptisms, 17 Funeral Services and 4 Wedding ceremonies. ## **Families, children and youth ministry** Although 2021 began with another Covid lockdown, as the pandemic began to ease, we were able to begin restarting, and expanding on many of the regular activities for children, you and families at St. Peter and St. Paul’s. Over the past year, our core number of church families has increased. Over two groups, we have 12 children meeting regularly, with another 5 coming intermittently. In 2021 we were also able to restart a group for toddlers and their carers, Treasure Tots, where we regularly see around 11-12 families each week. Our midweek Bible study and fellowship group for our church family teenagers also continues, now in-person. School assemblies regularly take place with our local Junior School, both online and in-person. In 2021, we were also able to hold Christmas services inperson, with a Christingle service, and two Christmas Eve nativity services, while the local Secondary School also held their Christmas Concert at the church for the first time. Encouragingly, the number of volunteers serving within the children’s and youth ministry has also increased by a good number over this past year. 3 Rachel Lord **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Trustees Annual Report (continued)** ## **Year ended 31st December 2021** ## **RECTOR'S REVIEW OF THE YEAR** ## **“In him you also are being built together into a dwelling place for God by the Spirit.” Ephesians 2:22** Thinking about lockdown, in last year’s report I used the image of stones scattered (Ecclesiastes 3:5) for a season, gathered again to be built together in a new way (1 Peter 2:5). Looking back over 2021, we begin see something of this new building in our joy, growth, fellowship and, not least, our unity. When someone becomes a Christian, the transformation of their identity is comprehensive: the lost is found, the dead sinner is now alive in Christ, the child of wrath becomes a child of God (cf. Ephesians 2). But Christians are not each alone in Christ. We join His Family of the local Church. The Gospel is therefore at the very heart of our fellowship and unity. Only God can soften hard hearts, only God can open blind eyes and only God can bring disparate people together and form something truly, gloriously united: His Church. In Jesus, God is building a holy temple, Ephesians 2:21, that is ‘…being built together into a dwelling place for God by the Spirit.’ How has this been evident in the life of St. Peter and St. Paul’s over the past year? The second temporary suspension of in-person services due to the Covid pandemic early in 2021 gave us valuable time and space to re-evaluate our pattern of in-person services. Towards the end of 2020, the Service Discernment Group (SDG) was formed. A diverse group, their brief was prayerfully to consider what patterns of services we should adopt in the short, medium and longer term. Easter 2021 saw us return to in-person services after the second lockdown. This was a humble beginning, a time of joy and some frustration: the joy of gathering together again was frustrated by continued restrictions on seating, masks and singing. As restrictions eased, the vision of the SDG was put first to the PCC and then commended to the church family. In brief, for not less than a year, we would meet as one Church Family at 10:30 am on Sunday mornings. We would work hard to develop a service that acknowledged the wide range of preferences within the Family. This new service was launched on Sunday 1st August 2021. Previously, during the suspension of in-person services, we had been prerecording and producing services which were streamed Sunday mornings. While a great success, the workload of preparing them was unsustainable so these were replaced with a live audio feed through our new internet radio channel LifeStream. Progress in developing this new common service has been slower than anticipated. Though a work in progress, there is already much to celebrate and huge potential as we keep looking to Jesus. During the Summer of 2021 we reviewed suitable evangelistic material. This was developed into the course: Imagine… the world we all want, aimed at reaching Shepton Mallet in the Winter of 2022. These are merely two of the more significant developments in what has been a surprisingly good year despite ongoing challenges of Covid. It is amazing – deeply humbling – when I stop to think how many are serving - using their individual gifts for the good of all to the praise of Jesus. I thank you all for responding to the call of Jesus and for your love, care and support of me and Emma and Zach. In all this we feel the Lord at work in our midst and look ahead with humble hope in Him as we pray for Him to do more with us to His Glory. In Him, Jonathan Rev. Jonathan Hunter Dunn 4 ## **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Trustees Annual Report (continued)** ## **Year ended 31st December 2021** ## **FINANCE REPORT** ## **Income** Our total income for the year was £170,504 representing an increase of 18% on 2020. Planned Giving and Ad hoc Donations to the General Fund were 19% higher and Cash Collections were 17% lower. Our income from Gift Aid increased by 21% but Weddings & Funerals income decreased by 50% due to a once-off catch up in accounting for these in the previous year. Two restricted ad hoc doantions of £20,000 each were received into the funds for the Re-ordering and Digital Organ. ## **Expenditure** Our total expenditure of £160,864 represents an increase of 21% on last year. The main increases from last year that contributed to this were: Parish Share (up £5,381), Children’s and Youthwork (up £20,636 with Families Worker employed for the full year), and Professional Fees associated with our Re-ordering project (up £9,482). Charitable Giving fell by £1,950 as the PCC decided to retain this for emergency giving in future years. Most other categories of expenditure were little changed from 2020. ## **Funds value** In addition to the income and expenditure movements outlined above the value of the PCC’s investments rose by £2,237 over the year recovering 64% of the value lost in the previous year. The net result of the excess of income over expenditure and the increase in investment value was to increase the ’ value of the PCC s total funds by £11,877 to £145,964. Within this total, however, the value of the General Fund fell by £15,722 (22%) to £58,077, of which £12,451 is held in tangible fixed assets which are not readily usable as cash. ## **Reserves** The PCC is required to formulate and disclose its policy on “reserves”, i.e. the level of funds which are freely available at any time. The PCC has adopted a policy to maintain reserves of £41,500 which is based upon 3 months of average projected general expenditure to cover variability in the timing of outgoings and a £5,000 lump sum to cover unforeseen short term building maintenance needs. The PCC defines reserves as the total value of its unrestricted funds less Tangible fixed assets. Using this definition, PCC reserves were therefore £69,928 on 31 December 2021, down £10,422 on the previous year. ## **Comments** The uncertainties of the pandemic continued through 2021 and by mid-year we were forecasting a general fund deficit of £45k by the end of the year. A presentation to the church family in July plus a number of significant one-off gifts combined with reduced expenditure on building maintenance resulted in a greatly reduced deficit of £13k at the year end. The installation of a digital organ (to be completed in 2022) was fully funded by a single, generous gift. As we plan for 2022 with greatly increased utility costs and anticipate the increasing living costs of our church family, a further deficit budget of £24k has been agreed by the PCC. John Knight 5 p￿la1 thwch C￿￿￿5 olsi SL P*( Year •Thled 3tst D•(ember 2021 I r•w io ih* In￿11t% OA mwnamin•¢itin d th* st4tements ol church Countsl olsL Peter & st. 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Sha9￿ Ma•oi BA4 SQ ## **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Statement of Financial Activities** ## **31st December 2021** **----- Start of picture text -----**
2021 2020
Note Unrestricted Restricted Total Total
Funds Funds Funds Funds
Income £ £ £ £
Donations & Legacies 4 119,200 40,000 159,200 125,967
Charitable Activities 5 7,456 0 7,456 14,337
Trading Activities 6 1,923 0 1,923 2,909
Investment Income/Interest 7 1,294 0 1,294 1,377
Other Income 8 632 0 632 462
Total Income 130,504 40,000 170,504 145,052
Expenditure
Expenditure on fundraising 0 0 0 0
Expenditure on Charitable Activities 9 143,122 12,351 155,473 125,230
Other Expenditure 10 5,391 0 5,391 7,344
Total Expenditure 148,513 12,351 160,864 132,574
Net Income/(Expenditure) -18,009 27,649 9,640 12,478
Transfers between funds 0 0 0 0
Gains on investments 11 2,237 0 2,237 0
Net Movement in Funds -15,772 27,649 11,877 12,478
Total Funds brought forward 98,151 35,936 134,087
Total Funds Carried forward 82,379 63,585 145,964
**----- End of picture text -----**
The statement of financial activities includes all gains and losses recognised in the year All income and expenditure derives from continuing activities. 7 rot*dal Chwth gfSL P•tor &St. pa￿ Sh￿10n Statement of financial Position Jlsi De￿rnh￿r 2021 2920 Mote T11nw￿ Fix*d Assots 12.451 17.wl Intangible F￿ea 16 19.184 16,916 T4*al Fts•d &ls*ts 31.634 34.748 Cash ai b•nk4nd ifi hond 114.3J Tot•1 Curyert Asxts 114330 4er• Co1￿10n$ Totsl L44bllltl•s 145,964 R•preThit•d ￿ FuThls Unrestrtt¢d. Germl 17 S8￿?? 73.149 UnrostrKtod- D￿vAnIl•0 Restrla 24J02 24 63y5 Toi•l Fwbds 145,964 The on p•8*S g w IJ f(¥m part of fin•n¢wl Jtalenbcms The Tntstees Annual Rewrt Fina￿1￿1 Statenrrrts the Ir￿ aUth￿Sed for preJtht*U¢>ft to the APCM. R*w. Jty¥th4n *luntef Cwn PCCChairn)kn '- qcLrL L 2CII ## **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Notes to Financial Statements** ## **31st December 2021** ## **1. General information** The PCC is an unincorporated charity registered in England and Wales (no. 1130891). The registered office address is Peter Street Rooms, Peter Street, Shepton Mallet, Somerset, BA4 5BL. ## **2. Statement of compliance** These financial statements have been prepared in accordance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Charities SORP (FRS102)) and the Charities Act 2011. ## **3. Accounting Policies** ## **Basis of preparation** The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value. The financial statements have been prepared in pounds sterling, the functional currency of the entity. ## **Going concern** There are no material uncertainties about the charity's ability to continue. ## **Fund accounting** Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds which have been earmarked by the trustees for a particular future project or commitment. Restricted funds are subject to restrictions on their expenditure declared by the donor or through the terms of an appeal. ## **Incoming resources** All incoming resources are included in the statement of financial activities when the income has been received . ## **Resources expended** Expenditure is recognised when a payment is made. Expenditure includes any VAT and is classified under headings of the statemment of financial activites to which it relates i.e. ** expenditure on raising funds includes all the costs of fundraising activities, events, non-charitable trading activities, and the purchase of goods for sale; ** expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including support costs and costs relating to the governance of the charity; ** other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. All costs are allocated to expenditure categories reflecting the use of the resource. Costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. ## **Tangible fixed assets and depreciation** All tangible fixed assets are initially recorded at cost. Depreciation is calculated so as to write off the cost of an asset, less any residual value, over its useful economic life as follows: Office equipment straight line over 4 years Audiovisual equipment straight line over 5 years The annual depreciation charge is recognised in expenditure ## **Investments** Investments are measured at fair value with changes in fair value being recognised in income or expenditure. 9 ## **Parochial Church Council of St. Peter & St. Paul, Shepton Mallet** ## **Notes to Financial Statements (continued)** ## **31st December 2021** **----- Start of picture text -----**
2021 2020
Unrestriced Restricted Total Total
£ £ £ £
4. Donations & Legacies
-
Planned giving 76,321 76,321 65,466
Cash collections 2,056 - 2,056 2,472
Ad hoc donations 12,443 40,000 52,443 16,225
Income tax recovered 27,630 - 27,630 22,771
Grants 750 - 750 -
Legacies - - - 19,033
Total donations and legacies 119,200 40,000 159,200 125,967
5. Charitable activities
Donations to toddlers/children/youth 258 - 258 913
-
Wedding and funeral fees retained 6,658 6,658 13,055
Other income from charitable activities 539 - 539 369
Total charitable activity income 7,456 0 7,456 14,337
6. Trading Activities
Bookstall 1,024 - 1,024 1,230
Peter Street lettings 375 - 375 150
Church lettings 505 - 505 0
Refreshments 19 - 19 104
Concerts and functions - - - 0
Parish weekend - - - 1,425
Total trading activity income 1,923 0 1,923 2,909
7. Investment Income
Dividends and Interest 1,294 0 1,294 1,377
8. Other Income
Fundraising income 497 - 497 43
Miscellaneous Income 135 - 135 419
Total other income 632 0 632 462
**----- End of picture text -----**
10 ## **Parochial Church of St. Peter & St. Paul, Shepton Mallet** ## **Notes to Financial Statements (continued)** ## **31st December 2021** **----- Start of picture text -----**
2021 2020
Note Unrestriced Restricted Total Total
£ £ £ £
9. Expenditure on Charitable Activities
Parish Share 68,237 - 68,237 62,856
Childrens & Youthwork 27,831 - 27,831 7,207
Finance & Administration 14,937 - 14,937 15,637
Charitable Giving 18 10,000 235 10,235 12,185
Church Utilities & Insurance 5,826 - 5,826 7,007
Church Buildings & Maintenance 2,442 11,156 13,598 6,633
-
Weddings & Funerals 3,097 3,097 3,370
Music & Services 1,055 960 2,015 2,231
-
Clergy Expenses 1,957 1,957 1,757
Training & Recruitment 250 - 250 300
Books to promote objectives 1,215 - 1,215 320
Mission 894 - 894 214
Equipment 31 - 31 163
Depreciation 12 5,350 - 5,350 5,350
Total Exp. on Charitable Activities 143,122 12,351 155,473 125,230
10. Other Expenditure
PSR Buildings & Maintenance 898 - 898 1,708
PSR Utilities & Insurance 2,691 - 2,691 2,837
Parish Away Day - - 0 1,425
Bookstall 1,280 - 1,280 1,142
Refreshment costs 238 - 238 88
Concerts & Functions 210 - 210 0
Miscellaneous costs 75 - 75 143
Total Other Expenditure 5,391 - 5,391 7,344
2021 2,020
£ £
11. Net gains on investments
M&G Charifund and Charibond 2,237 -3,519
12. Depreciation
Net income is stated after charging depreciation of tangible fixed
assets as follows:
Photocopier 1,200 1,200
A/V Equipment 4,150 4,150
Total depreciation 5,350 5,350
13. Staff costs
The total staff costs (including employee benefits) for the year 37,949 17,243
**----- End of picture text -----**
The PCC employed a Parish Administrator and a Families Youth and Children's Worker throughout the year so the number of employees at the year end was 2 (2020 : 2) 11 **Parochial Church of St. Peter & St. Paul, Shepton Mallet** ## **Notes to Financial Statements Continued)** ## **31st December 2021** ## **14. Trustee remuneration and expenses** No remuneration or other benefits from employment with the charity or a related entity were paid to trustees or persons directly associated with them except for the reimbursement of expenses incurred by various trustees on behalf of the PCC. ## **15. Tangible fixed assets** |Acquisition cost
Brought forward at 1 January 2021
Additions
Disposals
Carried forward at 31 December 2021
Depreciation
Brought forward at 1 January 2021
Charge for the year
Carried forward at 31 December 2021
Carrying Amount
Brought forward at 1 January 2021
**Carried forward at 31 December 2021**|£
25,551
0
0
**25,551**
7,750
5,350
**13,100**
17,801
**12,451**| |---|---| |**16.**
**Investments**
M&G Charifund and Charibond
Valuation at 1 January 2021
Revaluation
**Valuation at 31 December 2021**
**17.**
**Analysis by fund**
**Unrestricted Funds**
General
**Designated Funds**
Margaret Dyke
**Total Unrestricted Funds**
**Restricted Funds**
Roof Repairs
Re-Ordering
Digital Organ
Overseas Disaster
**Total Restricted Funds**
**Total funds of the charity**|16,946
2,237
**19,184**
**Value**
**Income &**
**Expenditure**
**Transfers**
**Value**
**1st Jan**
**Gains**
**31st Dec**
£
£
£
£
**£**
73,849
130,504
148,513
0
**58,077**
24,302
0
0
0
24,302
**98,151**
**130,504**
**148,513**
**0**
**82,379**
£
£
£
£
**£**
0
0
0
0
0
35,141
20,000
11,156
0
43,985
560
20,000
960
0
19,600
235
0
235
0
0
**35,936**
**40,000**
**12,351**
**0**
**63,585**
**134,087**
**145,964**| |---|---| **Margaret Dyke** : Set up with a legacy from Margaret Dyke, this fund has been designated by the PCC to support the church, particularly for mission and music, as decided by the incumbent and wardens in consultation with the PCC. **Roof repairs** : A restricted fund to pay for repairs to the church roof. Although the fund has no value at the year end it will be retained to allow restricted donations and grants for these necessary repairs in future. **Overseas disaster** : A restricted fund to help people overseas following a disaster when the local infrastructure cannot meet their needs. The fund was exhausted during the year with a donation to Tear Fund's Afghanistan Appeal. The fund has now been closed and unless restricted donations are received in future our giving to overseas disaster relief will be channelled through the General Fund under Charitable Giving. **Re-ordering:** A restricted fund to provide for the development and implementation costs of our re-ordering project **Digital organ** : A restricted fund for the purchase of a new digital organ expected to be completed in 2022. 12 ## **Parochial Church of St. Peter & St. Paul, Shepton Mallet** ## **Notes to Financial Statements (continued)** ## **31st December 2021** |**18.**
**Charitable Giving from General Fund**
Tearfund
Wycliffe Bible Translators
St Peter's Lifeline
Windsor Hill Wood
Salvation Army
YWAF
Shepton Mallet Relief in Need
Shepton Mallet Men's Shed
A Rocha
Solar Cookers Int.
Hope UK
Various Others
**Total charitable giving**
**Percent of previous years unrestricted income**
**Charitable Giving from Restricted Funds**
Tear Fund (from Overseas Disaster Fund)|**2021**
**2020**
£
£
2,000
1300
2,000
0
1,500
1300
1,500
1,300
1,000
1300
1,000
1,300
1,000
0
0
1300
0
1300
0
1,342
0
1,300
0
444
**10,000**
**12,185**
**8.4%**
**9.6%**
**2021**
**2020**
£
£
235
0| |---|---| ## **Main charities supported** **Tearfund:** As a Christian charity, Tearfund believes that everyone has an amazing God-given potential to create change. They show people around the world how to unlock these gifts and put them to use escaping poverty. Many of their partners in this work are local churches, who discover how to offer their communities material and spiritual hope. **St Peter's Lifeline** is a small charity that supports an impoverished parish community in a harsh, remote, area of Kenya. It’s principle activities are: educating orphaned and impoverished children, eliminating the foul scourge of FGM, a sustainable micro finance scheme for women, daily feeding scheme at 7 local primary schools, caring for over 120 disable children & their families and the provision of a water supply & irrigation. **Salvation Army:** Our gift was to support the local food back operations in our town. **Windsor Hill Wood** is a woodland shelter, a place of radical hospitality, manual labour and prayer. They aim to create a loving environment for people going through tough or uncertain times and offering them the chance to rediscover peace, silence and acceptance amidst the beauty and simplicity of the woods. Y outh W ith A F uture (YWAF) is a small Mendip-wide charity that supports 16-25 year olds who have had a tough start in life, especially those who have been homeless and are being supported by the YMCA. Grants are given for young people to purchase essentials for their first tenancy, to purchase interview clothes or college kits, and also grants to organisations supporting this age group. **Wycliffe Bible Translators** is a mission agency with a big vision: A world where everyone can know Jesus through the Bible. 1 in 5 people worldwide still don’t have a Bible in their language. Wycliffe serve local partners worldwide as they bring God’s word to their communities in the language which speaks to them best. **Shepton Mallet Relief In Need** exists to assist residents of Shepton Mallet who are in conditions of need, hardship or distress by making grants of money, or providing or paying for items, services or facilities calculated to reduce the need, hardship or distress of such persons. One-off grants of up to £250 are available. In 2021 the charity assisted seven needy individuals to pay for products or services that were deemed vital to their situation at the time. 13