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2020-12-31-accounts

ST MICHAEL & ALL ANGELS LONDON FIELDS with ST PAUL’S HAGGERSTON

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2020

Registered Charity Number 1130974

CONTENTS:

Page
Administrative details of the Charity, its 2
Trustees and Advisers:
Trustees’ Report: 3–6
PCC Structure, Governance and Management 3
Review of Activities 4-6
Finances: 7-13
Statement of the PCC's financial responsibilities, 7
Review of financial position and Reserves policy
Independent Examiner's Report 8
Statement of financial activities 9
Balance sheet 10
Notes to the accounts (including accounting policies) 11-13

1

ADMINISTRATIVE DETAILS OF THE CHARITY

Charity Name: The Parochial Church Council of the Ecclesiastical Parish of St Michael and All Angels London Fields with St Paul's Haggerston (‘the PCC’)

Registered Charity Number: 1130974

Members of the PCC (Charity Trustees): The members of the PCC who served during the year were:

Chair (ex officio): The Revd Daniel Gerrans, Vicar

Curate (ex officio) : The Revd John Irwin

Churchwardens (elected for one year at the Annual Meeting of Parishioners, and ex officio members of the PCC provided they are actual communicants whose names are on the electoral roll of the parish): Jimmy Asakes and Lily Ejeka.

Lay members of Hackney Deanery Synod (elected for terms of 3 years, and ex officio members of the PCC provided their names are on the electoral roll of the parish): Savitri Maitreyi Maria Hensman, Garofina Voichita Morton and Cathie M Smith.

Elected representatives of the laity (elected for terms of 3 years on a rotation basis, one third retiring and being elected each year): John Agyemang, Frank Boateng, Gillian Boateng, Elizabeth Bower, Maggie Hamand LLM, Richard Jarrett (ViceChair), Matthew Marques (Treasurer), Godwin Ogholo, Bill O’Loughlin, Darren Skidmore, Katrina Stewart (Secretary) and Esther Unachukwu.

Church address:

Lansdowne Drive London E8 3ER

Correspondence address:

97 Lavender Grove London E8 3LR

Independent Examiner:

David Parker FCA, Partner Sterlings Accountancy Solutions Ltd, Chartered Accountants Unit 5 Woodbrook Crescent Billericay Essex CM12 0EQ

Bankers:

National Westminster Bank plc 20 Amhurst Road London E8 1QZ

Church Architect:

Jon Bolter BA BArch RIBA AADipCons AABC Rees Bolter New North House 202 New North Road London N1 7BJ

2

TRUSTEES’ REPORT

The PCC presents its Report and Accounts for the year ended 31 December 2020.

St Michael & All Angels London Fields with St Paul’s Haggerston (‘the Parish’) is the Church of England (Anglican) Parish Church for London Fields, Hackney, London E8.

The Accounts have been prepared in accordance with the accounting policies set out on page 12 below and comply with the PCC’s governing documents, applicable laws and the requirements of the 2016 version of the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP (FRS 102)).

PCC STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The PCC is governed by two pieces of Church of England legislation, called Measures. These are:

Charitable status, purposes and activities

The PCC is registered with the Charity Commission. Its primary charitable purpose is the advancement of the Christian religion within the parish. Under section 2(2) of the 1956 Measure, as amended, this purpose includes the following functions:

The PCC’s activities include:

PCC members are charitable trustees, so all the provisions of charity law apply to their corporate responsibilities, financial management and decision making, as explained in guidance of the General Synod’s Legal Advisory Commission at http://www.sjp.org.uk/uploads/1/6/5/7/16572376/legal_position_of_pcc_members_final.pdf. Its members have complied with their duty to have due regard to the Commission’s public benefit guidance[3] when exercising any powers or duties to which the guidance is relevant.

1 The full text of the 1956 Measure, before the addition of paragraph (f) by the Church Representation and Ministers Measure 2019 Schedule 2 paragraph 10 (see http://www.legislation.gov.uk/ukcm/2019/1/schedule/2/paragraph/10#schedule-2-paragraph-10-2) is available on the Statute Law Database at http://www.legislation.gov.uk/ukcm/Eliz2/4-5/3/contents.

2 The CRR were replaced by the Church Representation and Ministers Measure 2019 section 1 and Schedule 1 (see http://www.legislation.gov.uk/ukcm/2019/1/section/1). The text of the rules as currently in force is available online at https://www.churchofengland.org/more/policy-and-thinking/church-representation-rules.

3 Comprising: Public benefit: the public benefit requirement (PB1) : https://www.gov.uk/government/publications/public-benefit-the-public-benefitrequirement-pb1; Public benefit: running a charity (PB2) : https://www.gov.uk/government/publications/public-benefit-running-a-charity-pb2; and Public benefit: reporting (PB3) : https://www.gov.uk/government/publications/public-benefit-reporting-pb3.

3

REVIEW OF ACTIVITIES

Annual Report for 2020 on the proceedings of the PCC and the activities of the parish generally (as required by Rule M5(1)(b) of the CRR)

Mission during the year

The task of furthering in the parish the whole mission of the church, pastoral, evangelistic, social and ecumenical[4] belongs not just to the PCC but to all church members. The PCC’s special function is to provide leadership in order to promote that mission. The following Report summarises the main activities undertaken by the PCC to carry out its charitable purposes for the public benefit, and its main achievements,[5] in a year in which the Coronavirus (COVID-19) pandemic and associated lockdowns inevitably had a significant impact, in common with other Parishes.

(1) The proceedings of the PCC

In addition to the church’s core role of offering public worship of, and witness to, God as revealed to humanity in Jesus Christ, in order more effectively to promote in the parish the church’s ‘whole mission’ , the PCC periodically identifies specific objectives which are distilled in a Mission Action Plan (MAP) and at each of its full meetings reviews progress in achieving them. In 2020 the PCC formally met 4 times (2 of them remotely via Zoom conference calls) and conducted some of its business through Committees and, during lockdowns, utilising the written resolution procedure under Rule M29 of the CRR. The table below lists the goals set in the current MAP and the progress in achieving them by the end of the year.

St Michael & All Angels London Fields Mission Action Plan 2018-2021 St Michael & All Angels London Fields Mission Action Plan 2018-2021 Approved by the Parochial Church Council 17/11/17 and 31/1/18, revised 10/7/19 and 27/11/19 Approved by the Parochial Church Council 17/11/17 and 31/1/18, revised 10/7/19 and 27/11/19
Vision: Being Open to God, open to all means being passionate a bout:
•loving and serving God

in joyful, reverent, orderly, welcoming, creative and imaginative worship

•loving neighbour by

•being a community where all are known and valued

•sharing the Good News of God's love

•being agents of the new creation through service, creativity, growth and development
Action: In addition to what is already happening, we aim to:
What How Who Progress at end of 2020
Strengthen our
ministry with
Children and
young people,
including by		 o continuing torecruit andtrain layleaders Childrenand Youth Ministry Ongoing: largely on hold due to COVID-19
o pending an opportunity arising to recruit a youth
worker, developing Youth Group in collaboration with its
members, support and equip existing leaders and recruit
new ones		 Children and Youth Ministry
Team		 Possibility of Sessional Youth Worker explored Aut 18,
not currently an option; variety of one-off activities
instead e.g. Psalm Drumming; objective revised by PCC
10.7.19 in light of Cathie Smith research and
Youthscape training attended by Daniel Aut 19;
Saturday Youth Club launched Feb 20, continued via
Zoom meetings during lockdown
o in collaboration with other local parishes and
ecumenical partners, supporting development of XLP’s
work in the parish and Borough		 Support Group: Vicar, Sean
and other(s) to be recruited
Ongoing: Mabel Anyiam and Sean Gubbins participating
in Support Group; PCC agreed 10.7.19 to continue
funding support for a further year; situation following
lockdown tbc
Strengthen our
Pastoral Careand
Community
Outreachby		 o befriending and supporting the Syrian refugee family
who recentlybecame tenants of the church flat		 Vicar, Condaisy Tidman and
Cathie Smith		 Ongoing; new gate installed at their request April 19
o exploring new means of community outreach Savi to explore CUF and other Data provided to PCC 29.1.20; to be considered as
part of planning for next MAP
o developing St Michael’s link with ALMA (London
Diocese’s links with Anglicans in Angola and Mozambique)		 Vicar initially, aim to recruit
laycoordinator
20th anniversary service at St. Paul’s Cathedral
attendedJul 18
Improve our
Church Building
by upgrading		 o Sound system in church Working Group (task now
complete)		 Completed Oct 2018; during COVID in 2020, adapted
‘ad hoc’ to need to livestream, but more
comprehensive upgrade desirable
o Narthex (the church entrance) Vicar and Richard Jarrett Achieved: work carried out Jun 2018, from Sept 2018
public access enhanced by leaving outer glass doors
open during daylight hours
o Lightingthroughout Vicar and RichardJarrett Achieved: work carried out Feb-Mar 20
Strengthen our
Resilience,
including		 o making contingency plans for temporary or permanent
loss ofpeople in keyroles		 PCC Ongoing: Contingency planning and resilience list
reviewed annually inJanuary
o implementing those plans by recruiting and training
additional volunteers		 As specified in the
Contingency planning and
resilience list		 Ongoing
Reviewthis Mission Action Plan regularlyand where appropriate update it PCC Ongoing

As part of its function, the PCC also controls the parish’s financial resources and accounts for its stewardship of them in its annual financial statements, which are presented pursuant to Rule M5(1)(c) of the CRR.

4 Section 2(2)(a) of the 1956 Measure. 5 As required by Regulation 40 of the Charities (Accounts and Reports) Regulations 2008 (see http://www.legislation.gov.uk/uksi/2008/629/regulation/40/made).

4

(2) The activities of the parish generally

As noted above, COVID-19 affected every aspect of the Parish’s life, but even so we were able to sustain our common life and mission in the ways summarised below.

Public worship

While public worship in church was suspended during the lockdowns, services were livestreamed and worship shared via Zoom from participants’ homes, initially just on Sundays and, from the Summer onwards, also on Thursday evenings. Livestreaming continued while public worship in church resumed, for the benefit of those preferring to remain at home for shielding or other reasons. Incidental benefits have included a widening of participation in leading worship and offering pastoral care, and a deepening of relationships between congregation members. Those unable to connect digitally were supported by weekly service sheets and news bulletins delivered to their homes.

Pastoral Care, Nurture and Outreach

Overall responsibility for pastoral care lies with the Vicar, who during the year received valuable help and support from (in particular): the Revd John Irwin (Curate); David Carr and Maggie Hamand (Licensed Lay Ministers); Godwin Ogholo (Commissioned Pastoral Assistant); and Jimmy Asakes and Lily Ejeka (who served as Churchwardens during the year). Major areas of pastoral care, nurture and outreach included the following:

5

Ecumenical

For the 8[th] year running, during the Week of Prayer for Christian Unity (18-25 January) St Michael’s joined 7 other local churches or worshipping communities of 5 different denominations in hosting services in different local places of worship each day, and during Lent (until prevented by the first Coronavirus lockdown) participated with other churches in South Hackney in an Ecumenical Lent Course . Also, St Michael’s and our neighbours at Hackney Methodist Church in Mare Street have continued our collaboration in response to the Anglican-Methodist Covenant signed in 2003 by the - then Archbishop of Canterbury and the President of the Methodist Conference (http://www.anglican methodist.org.uk/full-text-of-the-covenant/), with members of St Michael’s joining Hackney Methodist Church for their annual Covenant Service in January and members of Hackney Methodist Church coming to St Michael’s for our Patronal Festival (St Michael & All Angels).

Maintenance and improvement of the Church Buildings

In the Spring, a long-cherished project to upgrade the lighting throughout the church premises with LED units was realised, increasing the church’s energy efficiency and enhancing the interior of the church building with stunning Halo lights. The PCC gratefully acknowledges a grant of £2,500 from Allchurches Trust towards the costs of this project. Following completion of the lighting upgrade, the interior of the church was redecorated as part of cyclical maintenance. Minor repairs and routine maintenance were also carried out in accordance with the PCC’s annual maintenance plan. Further details are contained in the separate fabric report under Rule M5(1)(d) of the CRR. The PCC records its gratitude to the Churchwardens for their work in maintaining the fabric.

Social, community and environmental engagement

During 2020, many of our much-loved community events had to be cancelled due to COVID-19, including St Michael’s annual parish barbecue and Christmas Fete , but other activities were able to go ahead:

St Michael’s Church Hall continues to be an important asset in our Social and community engagement. Benefiting from a fully-equipped kitchen, Wifi, disabled access and WC facilities for wheelchair users, it is a valuable community resource for hire by community groups wishing to operate in London Fields. Though use largely ceased after the first lockdown, the kitchen was used by Haggerston Mutual Aid Group , a community run neighbourly support network, to prepare cooked meals for distribution to local families in need. After lockdown, we welcomed some new users, including Perform Workshops (Children’s drama classes), Slimming World and a Playgroup/Book club for Japanese speaking children. Other groups who used the Hall during 2020 included: the 8th Haggerston (St. Michael’s) Rainbows, Brownies and Guides (strongly connected to the church) ; Hackney Winter Nightshelter (operated by a separate Charity, Hackney Doorways, and supported by several church members as well as many volunteers from the wider community, offering food and shelter to 25 guests in a different church in the Borough each night of the week during the winter, until interrupted by the March lockdown. In a development accelerated by Coronavirus, during 2020 the Nightshelter moved to a different delivery model which no longer involves the use of church halls as dormitory accommodation for guests, so 2020 proved to be its last ‘season’ using the Hall) ; Moving Shadow Karate Club; His Grace Gospel Ministry Church, Hackney; House of Prayer Church, Hackney; and a local Tenants and Residents Association. The Hall is also used as a polling station, for children’s parties and for meetings of cultural and community organisations.

In response to the General Synod’s resolution in February 2020 calling on parishes to work towards net zero carbon emissions by 2030, the PCC in July approved the conclusion of a new 100 per cent green dual fuel contract. Completion of the switch was delayed, as it was first necessary to terminate existing gas and electricity supply contracts, one of which ran until February 2021. The new energy-efficient lighting installed during 2020, as reported above, should also reduce the church’s energy consumption.

The Revd Daniel Gerrans, Chair, for and on behalf of the Parochial Church Council

7 March 2021

6

FINANCES

Statement of the PCC's financial responsibilities

Charity law requires the PCC to prepare accounts for each financial period which give a true and fair view of the charity's state of affairs at the end the year and of its income and expenditure for the year.

In preparing those accounts, the PCC is required to:

The PCC is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the entity and to enable them to ensure that the accounts comply with the Charities Act 2011 and other relevant legislation. It is also responsible for safeguarding the assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Review of financial position

The results for the year and financial position are set out below. These include a distinction between the Building Development account and the Church current account. The PCC thanks all who have contributed in any way to church funds, especially those giving regularly through stewardship programmes, which have enabled the Parish to remain financially resilient and in particular sustain its commitment to contribute to the Diocesan Common Fund.

Reserves policy

Reserves are held for the furtherance of the PCC’s charitable objects, including as provision for significant unexpected but necessary expenditure.

Approved by the PCC and signed on its behalf by:

The Revd Daniel Gerrans, Chair, for and on behalf of the Parochial Church Council 7 March 2021

7

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ST MICHAEL AND ALL ANGELS LONDON FIELDS with ST PAULS HAGGERSTON

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2020

INCOME
Donations, legacies and grants
Church collection
Freewill offerings
Donations and gifts
Charitable collections
Grants received
Income tax refund
Other activities
Rent
- church and hall
- flat
Fees
Fetes and events
Other income
Investment income
Interest and increase in value of fund assets
Total incoming resources
EXPENDITURE
London Diocese (Common fund)
London Diocese (Fees)
Staff expenses
Youth work expenses
Music and organist
Repairs and refurbishment:
Church
Flat
Garden
Vicarage
Insurance and security
Gas and electricity
Water rates
Cleaning
Consumables
Stationery, books and advertising
Telephone and internet
Social events
Independent Examiners fee
Charity and gifts (from general funds)
Charity and gifts
Total expenditure
Transfer between funds
NET MOVEMENT IN FUNDS
FUNDS brought forward
FUNDS carried forward		 2020
2019
Unrestricted Restricted Restricted
Restricted
Total
Total
Funds
Grants Building fund Trust fund
Funds
Funds
£
£
£
£
£
£
3,066
3,066
8,544
28,606
28,606
28,837
1,540
200
250
1,990
6,248
162
371
533
1,027
1,477
2,000
3,477
5,483
7,602
7,602
9,702
7,976
7,976
14,054
15,835
15,835
17,696
51
398
449
1,294
-
2,178
226
226
13
74
14
6,495
6,583
11,846
66,615
2,969
264
6,495
76,343
106,922
48,000
48,000
46,500
398
398
586
1,110
1,110
529
255
300
555
4,635
1,845
1,845
5,705
10,667
27,478
38,145
7,333
970
970
2,925
-
1,444
-
1,565
4,760
4,760
4,307
2,148
2,148
2,437
318
318
891
151
151
870
861
861
1,314
615
615
1,105
677
677
516
-
197
960
960
-
799
467
1,266
1,960
371
371
250
74,136
1,536
27,478
0
103,150
85,069
(1,000)
1,000
-
-
(8,521)
2,433
(27,214)
6,495
(26,807)
21,853
86,502
6,577
27,214
63,493
183,786
161,933
77,981
9,010
0
69,988
156,979
183,786

9

ST MICHAEL AND ALL ANGELS LONDON FIELDS with ST PAULS HAGGERSTON BALANCE SHEET as at 31 De¢wnb•r2020 ke 2CQO 3)19 Current asts Irwestmerts- Trust FuTrJ 69.9 63,WJ Current awts Cash a103nk, 88,8 121,759 Oetécrs 20D) Tovjl ￿￿enta￿&t$ 90,8 125,759 Credi￿rS amounis lalling due Voithln one ymr .8 Net ￿￿ent asts 8fi 991 11),￿3 Toljl nel JgJ8t$ 156, 979 183, 786 Funds Un[e￿n￿&d Funds 77.981 Rexrtaed Fund$ Lknspert 0￿￿¢$ Vlcarage ¢C￿3￿0n AJTrJ Buldng Fun(1 Trust FLnd Totsl lund# 1210 5,80) 27. 214 63 493 183 699 156 979 These XCO￿l$w￿e awo*d ty the PCC aTrJ on rts tthaf ty The Rèwj GWT the Parfxhia thjrch Cojndl 27 JaryJJy 2￿21 10

ST MICHAEL AND ALL ANGELS LONDON FIELDS with ST PAULS HAGGERSTON NOTES TO THE ACCOUNTS

1 Accounting policies

1.1 Basis of preparation

The PCC is a public benefit entity within the meaning of FRS 102. The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs, and with the Regulations' 'true and fair view' provisions, together with FRS 102 (2016) as the applicable accounting standards and the 2016 version of the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP (FRS 102)).

The financial statements are prepared under the historical cost convention, except for investments which are shown at market value.

The financial statements are prepared in £ sterling rounded to the nearest £.

1.2 Income recognition

Income represents amounts received from freewill offerings, church collections and donations, and other sources of income from specific church activities, which are recognised as follows:

1.3 Expenditure

All expenses are considered as charitable expenditure, being the costs incurred directly and indirectly in the delivery of its charitable purposes.

Expenses are recognised when the liability is incurred.

1.4 Unrestricted/restricted funds

Unrestricted funds represent the funds of the PCC which are not subject to any restrictions regarding their use and are available for the general purposes of the PCC.

Restricted funds are to be used for specified purposes as laid down by the donor. Direct expenditure which meets these criteria are assigned to the funds.

1.5 Cash

Cash includes cash held at banks in current and deposit accounts, and cash in hand.; it is a basic financial asset under FRS102.

2 Investments

The investments are held in shares in the CBF Church of England Investment Fund and are included at market value.

11

ST MICHAEL AND ALL ANGELS LONDON FIELDS with ST PAULS HAGGERSTON

NOTES TO THE ACCOUNTS

3 Debtors

Income tax recoverable
4
Creditors: amounts falling due within one year
Accruals		 2020
£
2,000
2,000
2020
£
3,835
3,835		 2019
£
4,000
4,000
2019
£
5,465
3,615

5 Restricted Funds

Restricted funds comprise:

Grants received

Grant income received for specified purposes has been allocated to restricted funds. The PCC gratefully acknowledges grants received during the year from the Hackney Parochial Charities for relief of individuals in need.

Building Fund

The Building Fund was set up to raise funds for projects to redevelop and improve the church premises, most recently major improvements to the church lighting in 2020, which were managed by St Michael’s Building Committee, a committee of the PCC. The PCC gratefully acknowledges grant funding received from Allchurches Trust, and many donations by individuals, which contributed towards the cost of improving the church lighting. Following completion of the lighting project, the Building Fund and Building Committee have been wound up with £0 funds remaining.

Trust Fund

The Trust Fund comprises the balance of the proceeds of the sale of church premises sold in 1986 and the use of both capital and income is restricted to any ecclesiastical purpose within the parish, in accordance with the Parochial Church Council (Powers) Measure 1956. The PCC has adopted a policy to designate the use of the Trust Fund as follows: until further resolution and where possible: (i) capital should be preserved; (ii) future income should be reinvested as an accretion to capital; and (iii) the Trust Fund should be used for capital (not revenue) expenditure which will make or contribute to a lasting improvement to the church or hall.

Vicarage Repair Fund

Funds are transferred into restricted funds to provide for the future redecoration of the Vicarage.

12

ST MICHAEL AND ALL ANGELS LONDON FIELDS with ST PAULS HAGGERSTON

NOTES TO THE ACCOUNTS

6 Net assets attributable to the funds

Fixed assets
Investments
Current Assets
Cash
Debtors
Current liabilities
Net assets represented by funds		 Unrestricted Restricted
Total
Funds
Funds
Funds
£
£
£
-
69,988
69,988
78,816
10,010
88,826
2,000
-
2,000
80,816
79,998
160,814
(2,835)
(1,000)
(3,835)
77,981
78,998
156,979

7 Benefits in kind to community groups

During the year St Michael’s has allowed certain community groups to use church and hall space free of charge. These groups included The 8th Haggerston Rainbows, Brownies and Guides; and the Hackney Winter Nightshelter. Had rent been charged at the normal rates, prior to COVID this would have amounted to £6,000 (2019 £6,000).

8 Related party transactions

During the year Dave Carr, who was a member of the PCC until 29 March 2020, was paid £1,013 for work on the premises and garden.

9 Other Assets

Church flat

The PCC undertakes the management of the flat and has the benefit of the rental income. The flat is part of the premises and like the rest of the building it is owned by the London Diocesan Fund.

The rental from the flat is recognised as income when it becomes due.

The balance sheet does not include a value for the flat. It is valued at £300,000 (2019 £300,000).

13