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2020-12-31-accounts

www.crouchend.church

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY Diocese of London

Charity Registration no. 1131307

Annual Report & Accounts 31 December 2020

32 Crescent Road London N8 8AX

Independent Examiner Christine Cheung-Poston ACCA

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Report and Financial Statements 2020 Contents

Page
Legal and administrative information 2
Report of the Parochial Church Council 3
Independent Examiner’s report to the Parochial Church Council 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10

1

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Legal and Administrative Information For the year ended 31 December 2020

Charity Name Parochial Church Council of Christ Church, Hornsey
Principal Address 32 Crescent Road, Crouch End, London, N8 8AX
Charity Registration 1131307 The PCC was registered with the Charity Commission on 24thAugust
2009
Governing Document Parochial Church Council Powers Measure (1956) as amended and Church
Representation Rules.
Objectives Parochial Church Council Of Christ Church has the responsibility of cooperating with
the Incumbent of Christ Church, the Revd Adam Pymble, in promoting in the
ecclesiastical parish the whole mission of the church, pastoral, evangelistic, social and
ecumenical.
Members of the PCC PCC members who served during 2020 or were serving at the date this report was
approved were:
Clergy The Revd Adam Pymble (Vicar)
Wardens Mr Jonathan Hannah
Mr Christopher Phillips
Dr James Maurice (Assistant Warden, elected 2020)
Deanery Synod Representative Mr Richard Mercer
Elected members Mrs Sheila Wheeler (Secretary)
Ms Rebekah Allcock (Treasurer, elected 2020 having been ex-officio as warden)
Mrs Renata Hodgson (elected 2020)
Mr Timothy Culverhouse (elected 2020)
Mrs Rebecca Constable (elected 2020)
Those who also served during 2020:
Dr. Ajibola Fapohunda
Ms Christabel Oshodi
Ms Lynette Woodrow
Ms Christine Cole
Key Management Those in charge of planning, directing, controlling, running and operating the Charity,
Personnel including those members of staff who are the senior management personnel to whom
the trustees have delegated significant authority or responsibility in the day-to-day
running of the charity, are the Vicar, members of the Standing Committee and the
Operations Manager.
Bankers NatWest Bank Ltd
HSBC
Santander
Independent Examiner Christine Cheung-Poston ACCA
Flat 48, Samford House,
Charlotte Terrace, London N1 0JF

2

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Report of the Parochial Church Council For the year ended 31 December 2020

The Parochial Church Council of Parochial Church Council of Christ Church – Hornsey (“PCC”) submits its report and the financial statements of the PCC for the year ended 31 December 2020. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

1. Structure, Governance & Management

1.1 Trustees

The PCC meets approximately 8 times per annum* to discuss a full range of matters, both operational and strategic, relating to finance, fabric, general administration and the mission/ministries of the church. The PCC also has responsibility for keeping of the Electoral Roll. Members of the PCC are either ex officio or elected by the Annual Parochial Church Meetings (APCM) in accordance with the Church Representation Rules 2020

The method of appointment of PCC members is set out in the Church Representation Rules. All those who consider themselves part of the church family are encouraged to register on the Electoral Roll.

1.2 Church Attendance

The Electoral Roll revised in preparation for the 2020 Annual Parochial Church Meeting (APCM) in April 2020 comprised 65 members. Average weekly church attendance in 2020 would only be pertinent for those weeks between lockdowns when the church building was open for public worship. Much of 2020 was facilitated through the livestream.

1.3 Risk Management

The PCC’s primary concern and objective is the glory of God. Whilst it is the PCC’s policy to trust wholly in the Lord that He will work out His purpose to this end, the PCC also acknowledges that it has a responsibility, both as individual members and as a body of members, for the identification and proper management of risks faced by the church in achieving its primary aim. The PCC has therefore assessed the major risks to which the church is exposed, in particular those relating to the specific operational areas of the charity, its investments and its finances. The PCC believes that, by monitoring income, expenditure and reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational risks faced by the PCC, it has established effective systems and procedures to mitigate those risks.

2. Activities & Strategies

In preparing this Report, the PCC has complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission and have sought to demonstrate that the PCC provides identifiable benefits which relate directly to its aims and which outweigh any potential detriment or harm. Further, the benefits are publicly available to all and are not in any way restricted to those able to pay. Any private benefits to members of the PCC are incidental.

To this end the PCC organises the following activities in order to enable ordinary people to live out their faith as part of our parish community:

3

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Report of the Parochial Church Council For the year ended 31 December 2020

3. Review of the Year

2020 has been a year of significant challenge as the church family and team grappled with the pandemic. Church ministry suddenly needed to look very different and we are hugely grateful to all those who have been so flexible throughout the year and served to facilitate our church gatherings under the ‘new normal.’

Like so many other churches, we quickly adapted to running events online and sought ways to reach the vulnerable both without our surrounding communities and own church family. It was a privilege to do so, meeting more of our community and ‘loving one another’ and deepening our sense of unity in Christ at an important time in the life of the church family.

We were pleased to open our buildings when permitted by national guidelines (both Church of England and Downing Street) and also thank all those who at the end of the year worked tirelessly to make pre-recorded Christmas services possible.

For an overview of other PCC activities and church ministry that went on, please refer to ‘Other Reports’.

Other Reports

Safeguarding

  1. The role of Parish Safeguarding Officer was handed over from Lynette Woodrow in October 2020 to Caroline Goringe and Olivia King. Caroline and Olivia are now the named PSOs for Christ Church.

  2. A youth group for teenagers, two:42, commenced during this reporting period. This took place on a Sunday evening in the church and was conducted within safeguarding guidelines. It met online due to covid restrictions.

  3. Most ministries which involved children and vulnerable adults ceased at the point of lockdown due to the Covid-19 Pandemic. Further lockdowns over the winter of 2020 resulted in very few possible activities and meetings for the remainder of the year.

  4. At the point of the first lockdown, support networks were established to help some of our more vulnerable church family members with practical tasks

  5. The Christchurch Crouch End safeguarding policy was updated in July 2020 and approved by the PCC. This has additional topics relating to online considerations and acknowledges that Christchurch Crouch End’s activities will be undertaken in accordance with the Government and the Church of England’s guidance.

  6. The website continues to display safeguarding contact details as required. These details are also displayed within the church building alongside other important safeguarding details.

  7. Any safeguarding concerns raised to either of the PSOs over the course of the past year have been progressed in accordance with safeguarding policy.

Church Fabric, Goods and Ornaments

Church

During the period the heaters have been upgraded in the creche, lounge, West Chapel and office. Existing electric and gas heaters which were faulty were removed and new electric wall heaters fitted.

The former choir vestry was repainted and refurbished as a more flexible space. The outside lighting was also refurbished It has been noticed that internal and external cracks have continued to develop around the tower. Also, the flooring of the chancel is showing signs of subsidence. At present the Church Insurers have instructed investigations to determine the cause of the movement.

Church Cottages

Investigation and estimates prepared in anticipation of essential works and repairs in 2021 and beyond.

Uniformed Organisations

The Beavers, Cubs and Scouts were unable to meet for much of 2020, and not at all at Christ Church. Once guidelines permitted, Friday evenings were spent enjoying a range of games and activities at Scout Park with one or two additional weekend excursions.

4

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Report of the Parochial Church Council For the year ended 31 December 2020

4. Financial Review

4.1 Financial Activity and Financial Position

This year returned a net operating surplus of £96,374 (2019: surplus of £15,640). In terms of the overall financial position, the balance sheet shows total net assets of £2,010,447 (2019: £1,914,703).

4.2 Reserves Policy

The PCC has examined the requirements for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets. The PCC considers that, given the nature of the church’s work, free reserves should be equivalent to approximately 3 month’s routine general fund expenditure, plus committed future expenditure on other projects, where funds permit. The PCC is of the opinion that this provides sufficient flexibility to cover temporary shortfalls in income and will allow the church to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 December 2020 the church had net free reserves of £207,425 (2019: £106,108) as follows:

Total reserves
Less: restricted funds
Less: tangible fixed assets
Less: fixed asset investments
Free reserves
Free reserves requirement:
6 month’s budgeted routine expenditure		 2020 2019
£
1,914,703
-

(23,595)

(1,785,000)


£
2,010,447
-
(18,022)

(1,785,000)
106,108
207,425
65,000
65,000

The PCC is aware that the free reserves requirement is in excess of free reserves. Going forward, balanced operating budgets will be set by the PCC in order to maintain a level of free reserves which are at least equivalent to the free reserves requirement.

4.3 Investment Policy

The church currently places spare funds on bank deposit.

4.4 Grants Policy

The PCC makes annual grants to support missionary endeavours and charities in both the UK and abroad, notably in India and Chile. This was 5% of unrestricted income (which includes gift aid claimed back and rental/investment income) in 2020 and will be growing to10% in 2021. Regular recipients are under review.

5. Plans for Future Periods

We are delighted to have welcomed the Armstrong family and seeing them settle in to our church and local community. We look forward to developing existing and new ministries in 2022, whilst also anticipating significant capital works on renovations to Cottage A, the Chancel’s subsidence repairs and anything else highlighted within our next quinquennial inspection due next year. The church family will be updated at our next APCM and Vision Evening in Spring 2022.

6. Responsibilities of Trustees for the Financial Statements

The PCC is responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law in England and Wales requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the PCC and of the income and application of income of the charity for that period.

5

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Report of the Parochial Church Council For the year ended 31 December 2020

In preparing those financial statements, the PCC is required to:

The PCC is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports Regulations 2008 and the provisions of the governing document. The PCC is also 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 PCC is responsible for the maintenance and integrity of the charity and financial information included in the charity’s website.

7. Approval

The report of the PCC was approved by the PCC on 24 November 2021 and signed on its behalf by:

Revd Adam Pymble Chairman

6

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Report of the Independent Examiner to the Parochial Church Council of The Parish of Christ Church Hornsey

I report on the accounts of the Parochial Church Council of Christ Church Hornsey for the year ended 31 December 2020, which are set out on pages 8 to 15.

Respective responsibilities of PCC and examiner

The PCC are responsible for the preparation of the accounts. The PCC consider that an audit is not required for this year (under section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiners’ report

My examination was carried out 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 consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. 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 an fair view’ and the report is limited to those matters set out in the statement below.

Independent examiners’ statement

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

  1. accounting records were not kept in respect of the church as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in 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.

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 accounts to be reached.

Christine Cheung-Poston ACCA

24 December 2021

7

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Statement of Financial Activities For the year ended 31 December 2020

Note
Income from:
2
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
Total Income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net gains/(losses) on investments
Net income

Transfers between funds
Other recognised gains and losses

Net movement in funds

Total funds brought forward

Total funds carried forward
 Unrestricted
Funds
2020
£

156,106
1,164
2,267
63,807
-		 Restricted
Funds
2020
£
-
-
-
-
-
0
-
-
0
-
0
-
-
0
-
0		 Unrestricted
Funds
2019
£
102,634
13,439
8,635
69,329
154		 Restricted
Funds
2019
£
-
-
-
-
-
0
-
-
0
-
0
-
-
0
-
0		 Total
2019
£
102,634
13,439
8,635
69,329
154
Total
2020
£
156,106
1,164
2,267
63,807
-
223,344 194,191 194,191
223,344
29,720
97,250
126,970
-
96,374
-
-
96,374
1,914,073
2,010,447		 13,318
165,233		 13,318
165,233
29,720
97,250
178,551 178,551
126,970
- -
-
15,640 15,640
96,374
-
-		 -
-
-
-
15,640 15,640
96,374
1,898,433 1,898,433
1,914,073
1,914,073 1,914,073
2,010,447

8

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Balance Sheet For the year ended 31 December 2020

Unrestricted Restricted
Funds Funds Total Total
Note 2020 2020 2020 2019
£ £ £ £
Fixed Assets
Tangible Assets 5 18,022 - 18,022 23,595
Investments 6 1,785,000 - 1,785,000 1,785,000
1,803,022 1,803,022
0		 1,803,022 1,803,022
1,808,595
Current Assets
Stock - - - 562
Debtors 7 31,000 - 31,000 17,945
Cash At Bank And In Hand 178,752 - 178,752 89,047
209,752 209,752
0		 209,752 209,752
107,554
Creditors - Amounts Falling Due
Within One Year 8 2,327 - 2,327 2,076
-
Net Current Assets 207,425 0 207,425 105,478
Net Assets 2,010,447 0 2,010,447 1,914,073
Represented By:
Restricted Funds - - - -
Unrestricted Income Funds 2,010,447 - 2,010,447 1,914,073
Total Funds 2,010,447 0 2,010,447 1,914,073

The financial statements were approved by the PCC on 24 November 2021 and signed on its behalf by:

Rebekah Allcock Treasurer

9

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting except for the revaluation of freehold land and buildings which are shown at market value.

The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe an affiliation to another body or those that are informal gatherings of church members.

The PCC meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the PCC has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

The income from trading activities includes rental income from the letting of church premises and leasehold land and buildings which is accounted for when earned. It is shown gross, with the associated costs included in fundraising costs.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The PCC is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Expenditure included in Raising Funds includes amounts incurred in obtaining grants and other donations and property maintenance costs.

Charitable expenditure includes those costs in fulfilling the PCC’s principal objects, as outlined in the Report of the PCC. These include grants payable, governance costs and an apportionment of support costs.

The PCC contributes to certain employees' personal pension plans. These are defined contribution schemes, the assets of which are held separately from those of the charity. The cost in the accounts is the amount of contributions paid and payable during the year.

10

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies (continued)

Rentals under operating leases are charged as incurred over the term of the lease.

Tangible Fixed Assets

Consecrated Property and Moveable Church Furnishings

Consecrated land and benefice property such as the church building and vicarage is excluded the accounts in accordance with s10 of the Charities Act 2011. Moveable church contents are held by the vicar and churchwardens on special trust for the PCC and require a faculty for disposal are accounted as inalienable property unless consecrated. All expenditure incurred on consecrated or benefice buildings and moveable church furnishings, whether maintenance or improvement, is expensed within the Statement of Financial Activities.

Other Fixtures, Fittings & Office Equipment

The cost of other furniture, fittings and equipment, less any expected residual value, is depreciated on a straight-line basis over the effective useful lives of the assets, which have been estimated as between 4 and 15 years.

Fixed Asset Investments

The church’s investments are represented by the church hall and two residential properties. These were last valued on 20 January 2018.

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Fund accounting

The funds held by the charity are either:

11

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Notes to the Financial Statements For the year ended 31 December 2020

2. Income

Unrestricted
Funds
2020
£
Donations & legacies
Offerings – planned giving & one off gifts
132,709
Offerings – collections
7,397
Income tax reclaimed
16,000
156,106
Charitable activities
Fee income (net)
333
Mission event contributions
831
Homework club
-
1,164
Other trading income
Fundraising
659
Books
408
Lettings income
1,200
2,267
Investments
Rental income
63,701
Bank Interest
106
63,807
Other
Miscellaneous income
-
223,344		 Restricted
Funds
2020
£
-
-
-
0
-
-
-
0
-
-
0
-
-
0
-
0		 Total
2019
£
79,583
8,051
15,000
Total
2020
£
132,709
7,397
16,000
102,634
177
12,842
420
156,106
333
831
-
13,439
30
-
8,605
1,164
659
408
1,200
8,635
69,078
251
2,267
63,701
106
69,329
154
63,807
-
194,191
223,344

3. Expenditure on Raising Funds

Unrestricted
Funds
2020
£
Church hall costs
25,839
Residential accommodation
2,855
Books
1,026
29,720		 Restricted
Funds
2020
£
-
-
-
0		 Total
2019
£
8,881
4,437
-
Total
2020
£
25,839
2,855
1,026
13,318
29,720

12

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Notes to the Financial Statements For the year ended 31 December 2020

4. Expenditure on Charitable Activities

4. Expenditure on Charitable Activities

Unrestricted
Funds
2020
£
Provision of Clergy (including Common Fund)
64,937
Church life & outreach
2,878
Gifts & grants (see note 4a)
1,575
Office costs
4,956
Provision of Church building, facilities & equipment
22,654
Governance
250
97,250		 Restricted
Funds
2020
£
-
-
-
-
-
--
0		 Total
2019
£
101,137
28,824
3,600
6,817
24,855
-
Total
2020
£
64,937
2,878
1,575
4,956
22,654
250
165,233
97,250

4a Gifts & Grants

Gifts and grants included within Expenditure on Charitable Activities are as follows:

Unrestricted
Funds
2020
£

Gifts & grants to:
Organisations
1,575
Individuals
-
1,575		 Restricted
Funds
2020
£
-
-
0		 Total
2019
£
3,600
-
Total
2020
£
1,575
-
3,600
1,575

13

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Notes to the Financial Statements For the year ended 31 December 2020

5. Tangible Fixed Assets


Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for Year
Disposals
At 31 December 2020
Net Book Value
At 31 December 2020
At 31 December 2019		 Fixtures, Fixtures,
fittings,

plant &

equipment

£
64,667
-
-
64,667
41,072
5,573
-
46,645
18,022
23,595

All of the fixed assets are used for charitable purposes.

6. Fixed Asset Investments

Church Hall
£
Residential
Properties
£
At 1 January 2020
625,000
1,160,000
Additions
-
-
Revaluation
-
-
625,000
1,160,000
Total
£
1,785,000
-
-
1,785,000

The church hall was valued at market value on 20 January 2018 by Cottage and Castle Chartered Surveyors in accordance with the Practice Statements in the RICS Appraisal and Valuation Manual. The hall was built to replace a previous facility and is available for external hire in addition to its ongoing use by the church.

There are two residential properties. A ground floor flat was valued at £410,000 and a first floor flat at £750,000 on 20 January 2018 by Cottage and Castle Chartered Surveyors in accordance with the Practice Statements in the RICS Appraisal and Valuation Manual. The flats were bequeathed to the church in order to support its Christian purpose. During the year the flats were let.

14

PAROCHIAL CHURCH COUNCIL OF CHRIST CHURCH, HORNSEY

Notes to the Financial Statements For the year ended 31 December 2020

7. Debtors

7. Debtors
Prepayments
Income tax recoverable		 2020 2019
£
2,946
15,000
17,946
£
-
31,000
31,000

8. Creditors - Amounts Falling Due Within One Year


Accruals
Rent deposit		 2020 2019
£
-
2,077
£
250
2,077
2,077
2,327

9. Operating Lease Commitments

The total future minimum lease payments under non-cancellable operating leases are payable:

Not later than one year
Later than one year and not later than five years		 2020 2019
£
1,330
-
£
1,416
4,937
1,330
6,353

10. Related Party Transactions

The members of the PCC gave a total of £54,507 (2019: £21,292) in unrestricted offerings and donations during the year.

Richard Mercer, a member of the PCC, occupied the ground floor flat at Edison Road, London N8 8AE at a rental of £9,019.

15