Annual Report and Financial
Statements
Year ended 31 December 2021
St Michael’s Church Tilehurst
1
St Michael’s Church
Annual Report and Financial Statements
Contents
| Page | |
|---|---|
| Members of the Parochial Church Council (PCC) and Advisers | 3 |
| Report of the Members of the PCC | 4 |
| Independent Examiners Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Accounting Policies | 10 to 11 |
| Notes to Accounts | 12 to 16 |
2
St Michael’s Church
Annual Report and Financial Statements
Members of the Parochial Church Council (PCC) and Advisers
Members of the PCC are either ex officio or elected by the Annual Parochial Church Meeting (APCM). The names of the members of the Council who have served since the commencement of the 2020 financial year and were members when the accounts were approved:
| Rector | Reverend Dr. Elizabeth Ratcliffe |
|---|---|
| Curate | The Reverend Tracy Watkins (From July 2021) |
| Churchwardens | Mr David Bardwell |
| Mrs Patricia MacDonald | |
| Treasurer | Mr Patrick Woodlock |
| Secretary | Mrs Sarah (Sally) Cairns |
| Deanery Synod | Mr Trevor Greaves |
| Mrs Jane Masson | |
| Mrs Joan Jenks (died Nov 2021) | |
| Mr Jack Smee (from Nov 2021) | |
| Elected Members | Mrs Glenis Kerr Elliott (From 2019 APCM) |
| Miss Claire Stagg (From 2019 APCM) | |
| Mr Sozzie Kasozimusoke (From 2019 APCM) | |
| Mrs Jenny Bowerman (From 2019 APCM) | |
| Miss Maxine Elvey (From 2020 APCM) | |
| Ms Dee Anderson (From 2020 APCM) | |
| Dr Laurie Haseler (From 2020 APCM) | |
| Mrs Pauline Foskett (From 2020 APCM) | |
| Mrs Eileen White (From 2021 APCM) | |
| Mrs Joan Crossman (From 2021 APCM) | |
| Mrs Denise Easteal (From 2021 APCM) | |
| Mr Jack Smee (From 2021 APCM) | |
| Bankers | Lloyds TSB |
| Tilehurst | |
| Reading | |
| Independent examiner | Shahzad Niazi |
| Suite 86 | |
| 105 London Street | |
| Reading | |
| RG1 4QD | |
| Investment Advisors | CCLA |
| Senator House | |
| 85 Queen Victoria Street | |
| London | |
| EC4V 4ET | |
| Charity Commission Number | 1131421 |
3
St Michael’s Church Tilehurst
Trustees' Annual Report
For the year ended 31 December 2021
Aim and purposes
St Michael’s Parochial Church Council (PCC) has the responsibility of cooperating with the incumbent, the Reverend Dr Elizabeth Ratcliffe, in promoting in the ecclesiastical parish, the whole mission of the Church, pastoral, evangelistic, social and ecumenical. The PCC is also specifically responsible for the maintenance of the Church, the Church Hall and Tilston Lodge.
Objectives and activities
The PCC is committed to enabling as many people as possible to worship at our church and to become part of our parish community at St Michael’s. The PCC maintains an overview of worship throughout the parish and wider community and makes suggestions on how our services can involve the many groups that live within our parish. Our services and worship put faith into practice through prayer and scripture, music and sacrament.
When planning our activities for the year, we try to enable people to live out their faith as part of our parish community through:
-
Worship and prayer; learning about the gospel; and developing their knowledge and trust in Jesus.
-
Provision of pastoral care for our membership and people living in the parish.
-
Missionary and outreach work.
To facilitate this work it is important that we maintain the fabric of the Church and the Church Hall.
Achievements and performance
Worship and prayer
All are welcome to attend our regular services. At present there are 157 parishioners on the Church Electoral Roll, 89 of whom are not resident within the parish.
As well as our regular services, we enable our community to celebrate and thank God at the milestones of the journey through life. Through baptism we thank God for the gift of life, in marriage public vows are exchanged with God's blessing and through funeral services friends and family express their grief and give thanks for the life which is now complete in this world and to commend the person into God's keeping.
4
Church Hall
The Church Hall is used by various local groups and provides the church with valuable income which amounted to £24,741 in the year. This is significantly higher than 2020 due to recovery of activity after the COVID-19 Pandemic
Pastoral care
Some members of our parish are unable to attend church due to sickness or age. Reverend Dr Liz has visited all church members who have requested it, to celebrate communion with them either at their homes or in hospital; this Ministry is supported by authorised church members who offer communion to the housebound.
Mission and evangelism
Our focus has and will continue to be to improve all aspects of our worship in order to encourage new and existing members to benefit from their experience at St Michael’s.
Helping those in need is a demonstration of our faith. The Mission and charitable giving this year was some £1,200.
Our parish magazine is widely distributed and keeps our parishioners informed of the important matters affecting our Church and articles that help develop our knowledge and trust in Jesus.
Financial review
Total receipts on unrestricted funds were £133,416 from voluntary donations, legacy and Gift Aid. Tilston Lodge continues to be let, which provided a net income of £10,718
Unrestricted funds decreased by 64,000 to £1,063,724. This decrease in unrestricted funds is primarily due to reduced income as part of the recovery from Covid-19 and significant expenditure on church upkeep and maintenance work.
Volunteers
We would like to thank all the volunteers who work so hard to make our church the lively and vibrant community it is.
5
Structure, governance and management
The Parochial Church Council is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure. The PCC is a Registered Charity with the Charity Commission, registration number 1131421.
The PCC members are responsible for making decisions on all matters of general concern and importance to the parish including deciding on how the funds of the PCC are to be spent. New members receive initial training into the workings of the PCC.
The full PCC met 10 times during the year with an average level of attendance of 70%. Given its wide responsibilities the PCC has a number of committees dealing with particular aspects of parish life. These committees are all responsible to the PCC and report back to it regularly with minutes of their decisions being received by the full PCC and discussed as necessary.
Approved by the PCC on 9[th] March 2022
and signed on their behalf by Patrick Woodlock
6
Independent Examiner's Report to the PCC of St Michael’s Church, Tilehurst
I report on the accounts for the year ended 31st December 2021 which are set out on pages 8 to 17.
Respective responsibilities of the PCC and Independent Examiner
As trustees of the charity, the members of the PCC are responsible for the preparation of the accounts. They 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
-
examine the accounts under section 145 of the 2011 Act;
-
follow the procedures laid down in the General Directions given by the Charity Commissioners section 145(5)(b) of the 2011 Act; and
-
state whether particular matters have come to my attention.
Basis of Independent Examiner's Statement
My examination was carried out in accordance with the General Directions given by the Charity Commission.
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 seeking explanations from the management committee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in a full audit, and consequently I do not express an audit opinion on the accounts.
Independent Examiner's Statement
In connection with my examination, no matters have come to my attention
-
which give me reasonable cause to believe that in any material respect the requirements
-
to keep accounting records in accordance with s.130 of the 2011 Act; or
-
to prepare accounts which accord with these accounting records have not been met; or
-
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Shahzad Niazi Berkshire Accountants Limited Suite 86 105 London Street Reading RG1 4QD
7
St Michael’s Church Tilehurst
Statement of Financial Activities
For the year ended 31 December 2021
| Incoming Resources Notes Receipts from generated funds: Voluntary income 2a Activities for generating funds 2b Investment income 2c Total Incoming Resources Resources Expended Church activities 3a Cost of generating 3b Voluntary income Governance costs 3c Total Resources Expended Net Incoming Resources Before recognised Gains and losses Movements on Tangible Assets 5a Gains on investment Assets 5b Net Movement of Funds Balances brought forward Balances carried forward |
Unrestricted funds 93,289 28,745 11,381 133,416 180,462 150 144 180,756 (47,340) (17,000) 3,106 (61,234) |
Restricted funds 60 0 0 60 0 0 0 0 60 0 0 60 |
Total 2021 93,349 28,745 11,381 133,476 180,462 150 144 180,756 (47,280) (17,000) 3,106 (61,174) 1,227,688 1,166,517 |
Total 2020 224,769 10,517 6,663 241,949 141,405 0 474 141,879 100,070 (17,000) 1,365 84,435 1,143,252 1,227,688 |
|---|---|---|---|---|
8
St Michael’s Church Tilehurst Balance Sheet
For the year end 31 December 2021
Notes Fixed Assets Tangible 5a Investments 5b Current Assets Cash at bank and in hand Debtors 6 Liabilities Creditors – amounts falling due within one year 7 Net Current Assets Creditors- amounts falling due after one year 7 Total Net Assets Parish Funds Unrestricted Restricted 8 Endowment 9 Designated 10 Total Parish Funds |
2021 £ 799,000 24,823 823,823 345,645 0 345,645 2,951 342,694 0 1,166,517 983,025 77,970 24,823 80,699 1,166,517 |
2020 £ 816,000 21,680 837,680 392,958 0 392,958 2,951 390,007 0 1,227,688 996,321 77,911 21,680 131,775 1,227,688 |
|---|---|---|
The notes on pages 12 to 16 form part of these accounts.
These financial statements were approved by the PCC on 9[th] March 2022
The Reverend Dr Elizabeth Ratcliffe
The Treasurer Patrick Woodlock
9
St Michael’s Church Tilehurst Statement of Accounting Policies For the year ended 31 December 2021
1 Accounting policies
Basis of financial statements
The financial statements have been prepared under the Church Accounting Regulations 2006 in accordance with applicable accounting standards and the current Statement of Recommended Accounting Practice Accounting and Reporting by Charities (SORP 2005).
The financial statements have been prepared under the historical cost convention except for investment assets, 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 accounts of church groups that owe their affiliation to another body, nor those that are informal gatherings of the church.
Fund Accounting
Endowment funds are funds, the capital of which must be retained either permanently or at the PCC’s discretion; the income derived from the endowment is to be used either as restricted or unrestricted income funds depending upon the purpose for which the endowment was established in the first place.
Restricted funds comprise (a) income from endowments which is to be expended only on the restricted purpose intended by the donor and (b) revenue donations or grants for a specific PCC activity intended by the donor. Where these funds have unspent balances, interest on their pooled investments apportioned to the individual funds on an average balance basis.
Unrestricted funds are income funds which are to be spent on the PCC’s general purposes.
Designated funds are general funds set aside by the PCC for use in the future. Project funds are designated for particular projects for administration purposes only. Funds designated as invested in fixed assets for the PCC’s own use abated in line with assets annual depreciation charges in the SOFA. Designated funds remain unrestricted and the PCC will move any surplus to other funds.
Incoming Resources
Planned giving, collections and similar donations are recognised when received. Tax refunds are recognised when the income resource to which they relate is received. Grants and legacies are accounted for when the PCC is entitled to the use of the resources, their ultimate receipt is considered reasonably certain and the amounts due are reliably, quantifiable. Dividends are accounted for when declared receivable, interest as and when accrued by the payer. All incoming resources are accounted for gross.
Resources expended
Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. The diocesan parish share expected to be paid over is accounted for when due.
All other expenditure is generally recognised when it is incurred and is accounted for gross.
10
St Michael’s Church Tilehurst Statement of Accounting Policies For the year ended 31 December 2021
Fixed Assets
Consecrated and benefice property is not included in the accounts in accordance with s.10(2)(a) and (C) of the Charities Act 2011.
Movable church furnishings held by the vicar and churchwarden on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the church’s inventory, which can be inspected (at any reasonable time). For anything acquired prior to these accounts there is insufficient cost information available and therefore such assets are not valued in the financial statements. Subsequently no individual item has cost more than £1,000 so all such expenditure has been written off when incurred.
The Church Hall and Tilston Lodge are included in the accounts at historic cost and have not been revalued. Both buildings are being depreciated over 50 years, their expected useful lives, from 2012.
11
St Michael’s Church Tilehurst
Notes to the Financial Statements For the year ended 31 December 2021
2 INCOMING RESOURCES
| 2 (a) Voluntary Income Planned giving Tax recoverable Collections Donations and appeals Other church activities 2 (b) Activities for Generating Funds Spring Fayre Coffee Lent lunches Christmas bazaar Christmas cards Hall lettings Sundry Magazine 2 (c ) Investment Income Interest Dividends Rent Total Funds |
Unrestricted Restricted Endowment Funds Funds Funds £ £ £ 42,759 8,447 5,865 8,038 60 3,858 - 24,322 - 93,289 60 731 266 - 2,569 134 24,741 92 212 - 28,745 33 630 10,718 11,381 133,480 60 |
Total 2021 £ 42,759 8,447 5,865 8,098 3,858 24,322 93,349 731 266 - 2,569 134 24,741 92 212 28,745 33 630 10,718 11,381 133,480 |
Total 2020 £ 42,960 18,119 13,263 131,020 4,820 14,587 224,769 - 267 - - 694 8,574 618 364 10,517 94 152 6,415 6,663 241,949 |
|---|---|---|---|
12
St Michael’s Church Tilehurst Notes to the Financial Statements For the year ended 31 December 2021
3 RESOURCES EXPENDED
| 3 (a) Church activities Missionary and Charitable giving Missionary societies Other donations Parish Share Church running Expenses Churchyard Hall costs Hall repairs Depreciation Hall Church repairs Clergy and staffing 3 (b) Cost of Generating Funds Depreciation Tilston Cost of events 3 (c ) Governance costs Card services Blagrave Trust Examiners Fees |
Unrestricted Restricted Endowment Funds Funds Funds £ £ £ - 1,130 63,645 45,282 3.056 9,734 1,942 10,000 46,099 9,569 - 190,462 7,000 150 7,150 144 0 0 144 |
Total 2021 £ - 1,130 63,645 45,282 3.056 9,734 1,942 10,000 46,099 9,569 190,462 7,000 150 7,150 144 0 0 144 |
Total 2020 £ 4,375 - 69,490 31,320 4,224 8,516 9,825 10,000 7,058 6,597 151,405 7000 0 7000 505 0 0 505 |
Total 2020 £ 4,375 - 69,490 31,320 4,224 8,516 9,825 10,000 7,058 6,597 151,405 7000 0 7000 505 0 0 505 |
|---|---|---|---|---|
13
St Michael’s Church Tilehurst Notes to the Financial Statements For the year ended 31 December 2021
4 (a) STAFF COSTS
| Wages and salaries | 2021 £ 6,439 |
2020 £ 8,675 |
|---|---|---|
During the year the PCC employed a church administrator part time but no payments made were large enough to attract social security costs.
4 (b) PAYMENTS TO PCC MEMBERS
No payments or expenses were paid to any PCC Member or persons closely connected to them or related parties.
5 FIXED ASSETS
5 (a) Tangible Assets
| Church Hall £ Cost 31 December 2020 480,000 Disposals Additions - Cost 31 December 2021 480,000 Depreciation As at 31 December 2020 0 Charge for year 10,000 As at 31 December 2021 10,000 Net book value As at 31 December 2021470,000 As at 31 December 2020480,000 5 (b) Investments Market value as at 1 January 2020 Unrealised Gain Market value as at 31 December 2021 |
Tilston Lodge £ 336,000 - 336,000 0 7,000 7,000 329,000 336,000 21,717 3,106 24,823 |
Total £ 816,000 - 816,000 0 17,000 17,000 799,000 816,000 |
|---|---|---|
14
St Michael’s Church Tilehurst Notes to the Financial Statements For the year ended 31 December 2021
6 CURRENT ASSETS
| Debtors 7 LIABILITIES Amounts falling due within one year Creditors Amounts falling due after one year Loans ` 8 RESTRICTED FUNDS Arising from donations: Restoration projects 9 ENDOWMENT FUNDS Church Pightle Churchyard Endowment Bishop Bequest EF & FH Beard Trust Total 10 DESIGNATED FUNDS Designated funds |
Brought Forward £ 77,910 Brought Forward £ 1,905 3.852 2,458 13,501 21,716 Brought Forward £ 131,775 |
2021 £ 0 0 2021 £ 2,951 0 Incoming Resources £ 60 Gain £ 273 551 352 1,931 3,107 Incoming Resources £ 5,859 |
2020 £ 0 0 2020 £ 2,951 0 Resources Used £ 0 Dividends £ 55 112 71 392 630 Resources Used £ 56,935 |
Carried Forward £ 77,970 Transfer £ (55) (112) (71) (392) (630) Carried Forward £ 80,699 |
Carried Forward £ 2,178 4,403 2,810 15,432 24,823 |
|---|---|---|---|---|---|
15
St Michael’s Church Tilehurst Notes to the Financial Statements For the year ended 31 December 2021
11 ANALYSIS OF NET ASSETS BY FUNDS
| Tangible assets Investments Current assets Liabilities |
Unrestricted Funds £ 799,000 - 186,976 (2,951) 983,025 |
Restricted Funds £ - - 77,970 - 77,970 |
Endowment Designated Funds Funds £ £ - - 24,823 - - 80,699 - - 24,823 80,699 |
Total £ 799,000 24,823 345,645 (2,951) 1,166,517 |
|---|---|---|---|---|
12 CAPITAL COMMITMENTS
There are no current capital commitments.
13 CONTINGENT LIABILITIES
There were no obligations arising from events occurring before the date of the balance sheet whose existence will be confirmed only by the occurrence of events not wholly within the Church’s control.
14 POST BALANCE SHEET EVENTS
There are no material post balance sheet events that require disclosure.
16