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2021-12-31-accounts

Charity registration number 1131265

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rev Nick Hiscocks
Mr Tom Fentiman
Mr Stephen Grundy
Mr Jared Auty
Mrs Anne Harris
Mrs Lucy Dobson
Mrs Gwyneth Sully
Mr Stewart Greaves
Mr Nick May (Warden)
Mr Russ Coxon (Warden)
Ms Katie Benjamin (ex officio)
Charity number 1131265
Principal address Christ Church
Alumhurst Road
Bournemouth
BH4 8ER
Independent examiner F J Wilde FCCA MBA DChA
Warner Wilde
4 Marigold Drive
Bisley
Surrey
GU24 9SF

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

CONTENTS

Page
PCC Members' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 14

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the PCC's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: 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 (FRS 102)" (effective 1 January 2019).

Structure, governance and management

The charity, which is registered with the Charity Commission under number 1131265 is established under the Parochial Church Council powers measure (1956) as amended and Church representation rules as amended by special resolution on 21st June 2010. The Trustees are elected members of the Parochial Church Council (the PCC). The PCC are elected at an annual meeting each year and any member of the Electoral Roll for Christ Church Westbourne may stand for election (proposed and seconded by any other member of the electoral roll).

The Trustees who served during the year and up to the date of signature of the financial statements were:

Rev Nick Hiscocks Mr Tom Fentiman Mr Stephen Grundy Mr Jared Auty Mrs Anne Harris Mrs Lucy Dobson Mrs Gwyneth Sully Mr Stewart Greaves Mr Nick May (Warden) Mr Russ Coxon (Warden) Mr Clive Rogers (Resigned 24 May 2021) Mrs Ruth Edwards (Resigned 19 April 2021) Ms Katie Benjamin (ex officio)

Objectives and activities

Christ Church Westbourne exists to know Jesus Christ and to make Jesus Christ known to the glory of God. Using the Bible and prayer we seek to equip the whole church to speak of Jesus Christ to others. Our activities include Sunday services each week midweek small group Bible studies, one to one meetings, special events and other meetings to connect with the local community.

Public Benefit

The community of Westbourne benefit from our activities as we seek to engage traders, emergency services, the homeless and housing associations to build friendships with them. Our main public benefit is in being a Christian presence in the community and a place where people can understand the orthodox, Biblical message of Christianity.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

The measurement of people's knowing Jesus Christ is only occasionally measurable. Insofar as it is, we see people coming to hear the Bible and then living their lives in service of Jesus Christ and his gospel. That takes many forms including sacrificial service in church activities and sacrificial financial giving.

Financial review

The financial statements show a net surplus on general funds for the year of £60,102. The church has a council (the Parochial Church Council or PCC) which is responsible for decision making with regards to our finances. The PCC will decide where to focus our spending so that it best serves our objective expressed above. During the year the Church received legacies amounting to £27,706 which had no restrictions placed on them. There were some changes to the staff team, notably an Assistant Minister coming to the end of his contract and moving to another church, and the appointment of a part-time Women’s and Youth Minister.

Reserves Policy

The Trustees wish to retain an amount of cash in readily-available funds to allow for fluctuations in cash flow and have approved the policy statement below. The amount of available cash reserves is reviewed by the Trustees on a regular basis.

The church will aim to retain unrestricted cash reserves at a level equivalent to three months’ worth of expenditure. The basis of calculation shall be one quarter of the total revenue expenditure for the prior financial year. The church may deviate from this policy where there is good cause.

Total reserves at 31 December 2021 is £2,838,258 of which £91,387 is cash reserves.

Risk Policy

The Trustees consider risks to the operation of the charity on a regular basis, including strategic, financial and operational risks. There is an effective mechanism in place for risks to be escalated by the staff team to the Trustees for their consideration.

Risk Management

a) Reduction in income.

The charity receives gifts from a large number of givers and so there is limited exposure should a small number of givers reduce or withdraw their giving. Legacy giving is reviewed annually and the amount fluctuates from year to year. In 2021 legacy giving amounted to less than 8% of total income and so the impact of a loss of legacy income is minimal. Unrestricted cash reserves are held in accordance with the Reserves Policy to allow for a short-term reduction in income.

b) Increase in expenditure.

The charity owns and maintains an ageing building portfolio and it is anticipated that some of the properties will require remedial work beyond routine maintenance in the next three years. The Trustees anticipate significant remedial work on the church building in the next few years and investigations to determine the scope and costs are underway.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 cl Loss of key personnel. The charity employs a number of staff who are trained, or are training, in Bible leaching and pastoral ministry. The staff are able lo transfer their skills into areas of the ch8rity's operation outside of their own specialist area and would do so in the event of a loss of key personnel. Pay Poll¢y for Key Management The Trustees, with the exception of the Vicar, give their lime freely. The Wicar, along with all other st8ff, reTrive a remuneration that 15 in accordance with the charity's pay policy and based upon Church of England guidelines. The pay for the ministry staff (excluding ministry Apprenti￿s) increases annually in accordance with the policy uplo a maximum limit defined by Church of England salaries for the respective roles. Trustees Re$ponslbllities The Trustees are responsible for the overall governance of the charity and support the Vicar in key strategic decisions. The Trustees are regularly briefed on the financial positlDn of the charity and are responsible for ensuring the preparation of the annual accounts and financial statements in accordance with applicable law. The Trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees have all received training in Safeguarding prO￿dureS in respect of Children and Vulnerable Adults and approve the related policies and procedures and the appointment of volunteer personnel lo oversee and operate the Safeguarding practices. Plans for future periods Our plans are lo continue in knowing Christ and making Christ known bul to do so in greater breadth and depth. The more we equip the church members lo grow in knowing Christ, the more they will connect with the community effectively and the more people we can help and reach in the local area. The trustees. report was approved by the Board of Trustees. Rev Nick Hiscocks PCC member Dale". 11 OLt IL

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

I report to the Trustees on my examination of the financial statements of Parochial Church Council of Christ Church Westbourne (the PCC) for the year ended 31 December 2021.

Responsibilities and basis of report

As the Trustees of the PCC you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the PCC’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the PCC’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the f inancial statements to be reached.

F J Wilde FCCA MBA DChA

Warner Wilde 4 Marigold Drive Bisley Surrey GU24 9SF

Dated: 27 October 2022

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Unrestricted
funds
funds
2021
2020
Notes
£
£
Income from:
Donations and legacies 3 352,515
355,366
Charitable activities 4 3,474
1,121
Investments 5 54
671
Total income 356,043
357,158
Expenditure on:
Charitable activities 6 295,941
451,937
Net income/(expenditure) for the year/
Net movement in funds 60,102
(94,779)
Fund balances at 1 January 2021 2,778,156
2,872,935
Fund balances at 31 December 2021 2,838,258
2,778,156

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE BALANCE SHEET ASAT31 DECEMBER 2021 2021 2020 Notes Fixed assets Tangible assets 10 2,889, 111 2.889,111 Current ass9ts Stocks Debtors Cash at bank and in hand 11 12 281 8,821 91,387 200 7,603 37,236 98,489 CredFtor8: amount8 falling due within one year 45,039 14 {15,575} 112,2741 Nel current assets 82,914 32,765 Total assets less current Ilabilities 2,972,025 2,921,876 Creditors: amounts falling duè aftor moro than one year 15 1133,767) 1143.7201 Ngt assets 2.838,258 2,778.156 Income funds Unreslricled funds- general 2,838,258 2.778,156 2,838.258 2,778,156 The financial slalemenls were approved by the Trustees on Rev Nick Hiscocks Trust&e

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Parochial Church Council of Christ Church Westbourne is a Parochial Church Council (PCC) operating under the Parochial Church Council Powers Measure, the PCC is a registered charity in England and Wales.

1.1 Accounting convention

The financial statements have been prepared in accordance with the PCC's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: 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 (FRS 102)" (effective 1 January 2019). The PCC is a Public Benefit Entity as defined by FRS 102.

The PCC has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the PCC . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the PCC has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the PCC.

1.4 Income

Income is recognised when the PCC is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the PCC has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the PCC has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Annual Impairement Review Plant and equipment 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Impairment of fixed assets

At each reporting end date, the PCC reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The PCC has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the PCC 's balance sheet when the PCC becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the PCC ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the PCC is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

2 Critical accounting estimates and judgements

In the application of the PCC’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Donations and gifts 324,294 354,986
Legacies receivable 27,706 380
Job Retention Scheme 515 -
352,515 355,366
Donations and gifts
Planned giving 75,113 63,840
Donations including tax recoverable 248,746 289,311
Outreach 435 1,835
324,294 354,986

4 Charitable activities

2021 2020
£ £
Sundry income 3,474 1,121

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Investments

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Interest receivable 54 671

6 Charitable activities

Staff costs
Fabric and repairs
Worship
Mission support
Adult groups
Youth work
Outreach and training
Donations
Staff team: rents and repairs
Staff team: other housing costs
Staff team: other expenses
Ministry costs
Book stall costs
Share of support costs (see note 7)
Share of governance costs (see note 7)		 2021
£
149,342
30,488
3,107
47,750
2,949
1,895
1,889
2,568
24,737
15,537
1,253
-
240
281,755
8,001
6,185
295,941		 2020
£
170,257
82,360
3,004
88,458
504
1,520
1,831
91,000
-
-
-
812
425
440,171
10,227
1,539
451,937

In 2020, staff team expenses were included within the broader charitable activity headings. For example, Staff team: rents and repairs was included within Fabric and repairs. In 2021, staff team expenses have been analysed out into separate expense categories.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7
Support costs
Support
costs
Governance
costs
£
£
Office costs and
administration
4,578
-
Bank charges
297
-
Other finance charges
3,126
-
Legal and professional
-
4,385
Independent examiner
-
1,800
8,001
6,185
Analysed between
Charitable activities
8,001
6,185		 2021
£
4,578
297
3,126
4,385
1,800
14,186
14,186		 Support
costs
Governance
costs
£
£
6,374
-
169
-
3,684
-
-
-
-
1,539
10,227
1,539
10,227
1,539		 2020
£
6,374
169
3,684
-
1,539
11,766
11,766

Governance costs includes payments to the independent examiner of £ 1,800 (2020- £ 1,539 ).

8 Trustees

One trustee received reimbursement of £307 in personal travel expenses.

Eight trustees also received reimbursement during the year of £3,750 (2020: £4,064) for church expenses such as ministry, worship, groups, youthwork and outreach costs.

9 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
6
2021
£
124,184
5,389
19,769
149,342		 2020
Number
8
2020
£
135,960
8,502
25,795
170,257

There were no employees whose annual remuneration was more than £60,000.

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10
Tangible fixed assets
Freehold land
and buildings
£
Cost
At 1 January 2021
2,894,252
Disposals
-
At 31 December 2021
2,894,252
Depreciation and impairment
At 1 January 2021
5,141
Eliminated in respect of disposals
-
At 31 December 2021
5,141
Carrying amount
At 31 December 2021
2,889,111
At 31 December 2020
2,889,111
11
Stocks
Finished goods and goods for resale
12
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 Plant and
equipment
£
37,239
(37,239)
-
37,239
(37,239)
-
-
-
2021
£
281
2021
£
4,409
2,412
6,821		 Total
£
2,931,491
(37,239)
2,894,252
42,380
(37,239)
5,141
2,889,111
2,889,111
2020
£
200
2020
£
3,526
4,077
7,603

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH WESTBOURNE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13
Loans and overdrafts
2021
£
Bank loans
143,636
Payable within one year
9,869
Payable after one year
133,767
Amounts included above which fall due after five years:
Payable by instalments
84,767
The mortgage term is 240 month with interest payable quarterly at 2% over the base rate.		 2020
£
153,328
9,608
143,720
124,159
14
Creditors: amounts falling due within one year
Notes
Bank loans
13
Other taxation and social security
Trade creditors
Accruals and deferred income
15
Creditors: amounts falling due after more than one year
Notes
Bank loans
13		 2021
£
9,869
2,048
1,368
2,290
15,575
2021
£
133,767		 2020
£
9,608
-
2,666
-
12,274
2020
£
143,720

16 Related party transactions

Four PCC members employed by the charity received remuneration of £89,289 in the form of salary and pension contributions.

This amount includes payments to 'Key Management Personnel' defined as the vicar, of £34,228 which includes employers costs such as national insurance and pension contributions, but excludes the cost of providing housing.