## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF FOLKESTONE HOLY TRINITY WITH CHRIST CHURCH** 

**ANNUAL REPORT AND FINANCIAL STATEMENTS** 

**YEAR ENDED 31 DECEMBER 2022** 

**Registered Charity No. 1131472** 



**PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **ADMINISTRATIVE INFORMATION** 

|**Incumbent**|The Reverend R P Weldon TSSF|
|---|---|
||21 Manor Road|
||Folkestone|
||Kent|
|**Charity Number**|1131472|
|**Governing document**|Parochial Church Council Powers Measure (1956) as amended|
||and Church Representation Rules.|
|**Bankers**|Royal Bank of Scotland|
||Drummond House|
||Redheughs Avenue|
||Edinburgh|
||EH12 9RH|
||HSBC|
||41 Sandgate Road|
||Folkestone|
||CT20 1SA|
|**Independent Examiners**|M Wilkes FCA|
||Azets Audit Services|
||Chartered Accountants|
||Ashford Commercial Quarter|
||1 Dover Place|
||Ashford, Kent|
||TN23 1FB|





## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **CONTENTS** 

||**Page**|
|---|---|
|Trustees' Report|1 - 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Comparable Statement of Financial Activities|7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 - 13|





## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **TRUSTEES' REPORT** 

**___________________________________________________________________________________________________________** The Trustees present their annual report and financial statements for the year ended 31 December 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ (FRS 102) in preparing the annual report and financial statements of the charity. 

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’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 published on 16 July 2014 as amended by Bulletin 1. 

Where necessary for context, this report also reflects the work of the Trinity Benefice, of which Holy Trinity Church is a member. 

## **Aims and Purposes** 

Holy Trinity PCC has the responsibility of co-operating with the Incumbent, in promoting in the ecclesiastical parish, within the Trinity Benefice, the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for the Church building of Holy Trinity Church, Sandgate Road, Folkestone, and the church hall at the same address. This section reflects the work of The Trinity Benefice, of which Holy Trinity Church is a part and should be read with that in mind. 

## **Objectives and Activities** 

The PCC is committed to drawing as many people as possible into worship at our church, and to working together with individuals and organisations in the community for the common good and furtherance of our common goals and values. The PCC maintains an overview of worship, outreach, ministry and mission. When planning activities for the year, consideration is given to the Charity Commission’s guidance on public benefit and, in particular, the specific guidance to charities for the advancement of religion. In particular, we try to enable people to live out their faith as part of our parish through: Worship and prayer; learning about the Gospel; developing their knowledge and trust in Jesus, provision of pastoral care for people living in the parish, Missionary and outreach work. 

## **Public benefit statement** 

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and, in planning future activities. 

## **Worship Prayer and Mission** 

The PCC is keen to offer a range of services during the week and over the course of the year that our community find both beneficial and spiritually fulfilling. Each Sunday a service of Holy Communion is celebrated at 8am, whilst at 10.30am there is a service of Holy Communion (sometimes followed by healing ministry). Evensong is sung every Sunday evening at 6.30pm. 

There is a regular weekday communion service on Friday at 11.30am. Morning Prayer is said in the church at 8.30am on Monday, Wednesday, and Friday. All weekly term-time services for pre-school children together with their parents or carers, previously held at Holy Trinity Church, have been amalgamated with the other churches within the Trinity Benefice and are now held at St Paul's Sandgate. 

-1All are welcome to attend our regular services. As well as our regular services, we enable our community to celebrate and thank God at the milestones of the journey through life, including Baptism, Marriage and Funeral services. During 2022 there were 3 Baptisms, 3 Weddings, 3 Wedding Blessings, and 7 Funerals with an additional 9 funeral services taken at crematorium. 

## **Review of 2022 by Revd. Bob Weldon** 

## _**Ministry Team and Pastoral**_ 

We are blessed with our Ministry Team. This year has been a mixed bag. One minister is now an ordinand, and another has reached the interview stage of the discernment towards ordained ministry. So hopefully we will have two ordinands in the Benefice. We also have two new authorised lay ministers. Sadly one minister has had to retire, one has been beset with serious health challenges and another has had to step back to care for their spouse who is ill. Our two Anna Chaplains are active and the community club is still active. With greater and greater challenges, our wonderful pastoral team have given so much, and I commend them to you. 

## _**Community Events**_ 

This has been an exceptional year in the Benefice. We celebrated St Paul’s 200[th] anniversary with a week of wonderful, well attended, events. A highlight was a talk given by Terry Waite, to a packed church, during which one could hear a pin drop. Holy Trinity had a variety of amazing concerts throughout the year, and leading up to Christmas, one event had about 700 in attendance, which had to have two performances. St George’s hosted the Benefice Breakfast, magnificent as always, which raised nearly £400 in aid of Touchbase Care. 

## _**Services**_ 

We now have a full range of services on offer. But still some people are nervous about attending church. Two of our churches livestream on Sundays, and this has been a success. We continue to conduct a good flow of weddings and baptisms, but very sadly, many, many funerals. 

- 1 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **TRUSTEES' REPORT** 

**___________________________________________________________________________________** 

## _**Income and Expenditure**_ 

Again lower attendance figures have affected our income. Costs are rising dramatically in relation to fuel bills. Any ideas about raising income would be greatly appreciated. 

## _**Those who have gone before us**_ 

So many loved and respected brothers and sisters have passed away and this sits heavily on my heart. On Sunday 16[th] January we held a service for our departed brothers and sisters, which was well attended. 

## _**External Matters**_ 

We still continue to offer a drop-in centre for Napier Barracks refugees at St Paul’s. We also offer English lessons for our brothers and sisters from Ukraine. We had a collection point for clothing and other necessary items as soon as Russia invaded Ukraine. We continue to support the Night Shelter for the homeless, and our Benefice provide the evening meal on Sunday evenings. Those who are involved in these pursuits are to be commended 

## _**General**_ 

Fiona and I will have completed seven years in this ministry and are happy here. We now have my 88 year old mother living with us and the support we have received from people in the Benefice has been heart-warming. Thank you so much. I feel privileged to be your vicar. 

## **Financial Review 2022** 

Income for the year amounted to £112,463 (2021: £84,740). Expenditure for the year amounted to £113,560 (2021: £101,962). This resulted in a deficit of £1,097 (2021: £17,222). Restricted funds at 31 December 2022 amounted to £15,009 (2021 £13,672) relating to legacies and donations for specific purposes. 

Designated funds at 31 December 2022 amounted to £200,341 (2021: £202,422) and relate to funds set aside for future expenditure. Unrestricted funds at 31 December 2022 amounted to £48,790 (2021 £49,143). 

## **Pay policy for key management personnel** 

The trustees consider the board of trustees as the key management personnel of the charity in charge of directing and controlling, running and operating the PCC on a day to day basis. 

## **Plans for the future** 

Projects agreed or under consideration for 2023 and beyond include further improvements to security of the church building and further major repairs recommended by the quinquennial report. The church building will require substantial reroofing within the next few years. Initial surveys have taken place and steps are being taken to raise the necessary funds. 

## **Reserve Policy** 

It is the desired policy of Holy Trinity Church PCC to keep £50,000 in reserve for unforeseen emergency repairs to the fabric of the building. Unrestricted funds including designated funds at 31 December 2022 amounted to £249,131 (2021: £251,565) .In addition the PCC will set aside £2,000 annually to cover quinquennial costs, to be ring-fenced within the Quinquennial Sinking Fund. The PCC is also committed to giving an additional sum to Mission which will not exceed the total interest received on the Legacy Fund. 

## **Major Risks** 

The PCC reviews the activities of the parish and considers the major risks that may arise from time to time. The major risks identified in the process have been assessed and satisfactory systems established to mitigate the risks. The PCC will continue to review the risks on an on-going basis. 

Owing to the temporary closure for public worship by the Church of England of all its churches arising from the Covid19 crisis, giving and other income have continued to be curtailed during the early part of 2022. Covid-19 has continued to have a significant impact on the finances of the charity. In 2022 it was again necessary to use reserves to cover the loss of income and for the future a number of measures are being and have been put into place to restore and improve income from giving, hire of buildings and all other sources and fundraising events. The trustees are of the opinion that these measures are sufficient, taking into account the current level of reserves, for the charity to be able to continue as a going concern. We are confident that our substantial reserves are more than sufficient to finance the income shortfall in the medium term. Please see note 1.7 to these financial statements. 

- 2 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **TRUSTEES' REPORT** 

**_____________________________________________________________________________________** PCC members (except where indicated as non PCC) 

|_Vicar_|The Revd. Robert Price Weldon|Chair|
|---|---|---|
|_Benefice Priest_|The Revd. Roger Smith||
|_Benefice Priest_|The Revd. Kate McNeice (non PCC)||
|_Readers_|Mr Charles Lewis||
||Mrs Janette Smith (non PCC)||
|_Authorised Lay Minister_|Mrs Fiona Weldon (non PCC)||
|_Wardens:_|Mr Michael Gilham|Vice Chair|
||Mr Christopher Martin (appointed 7 August 2022)||
||Mr Brian Higgleton (resigned 21 April 2022)||
|_Warden Emerita_|Mrs. Sarah Bristow (deceased 1 February 2023)||
|_Deanery Synod_|Mr Charles Lewis||
||Mr Tim Parsons||
||Mr Denis Dadson||
|_Elected Members_|Mrs Alison Chambers||
||Ms Michelle Fletcher||
||Mr Tim Parsons||
||Mrs Christine Schilder||
||Mrs Heather Sutherland||
||Mr Charles Lewis||
||Mr David Troke||
||Mrs Hilary Tolputt||
||Mr Christopher Martin (from 21 April 2022 to 7 August 2022)||
|_Co-opted Members_|None||
|_Treasurer_|Mr Denis Dadson||



## **Structure, Governance and Management** 

The method of appointment of PCC members is set out in the Church Representation Rules. All Church attendees are encouraged to register on the Electoral Roll and stand for election to the PCC. 

## **Trustees’ Responsibilities** 

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently 

- observe the methods and principles in the Charities SORP 2015 (FRS 102) 

- make judgements and estimates that are reasonable and prudent 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation 

-3- 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **TRUSTEES' REPORT** 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts & Reports) Regulations 2008 and the provisions of the trust deed. They are 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. 

In approving the Trustees’ Annual Report we also approve the Strategic Report included therein, in our capacity as trustees. 

Signed on behalf of the PCC 

Revd Robert Price Weldon 

Chair April 2023 

- 4 - 



## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

I report to the charity trustees on my examination of the accounts for the year ended 31 December 2022, which are set out on pages 6 to 13 

## **Responsibilities and basis of report** 

As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act'). 

I report in respect of my examination of the charity's accounts carried out in accordance with the Church Accounting Regulations 2006 ("the Regulations") and under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

## **Independent examiner's statement** 

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

1. accounting records were not kept in respect of the charity 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 such 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. 

Signed: M Wilkes FCA Azets Audit Services Chartered Accountants Ashford Commercial Quarter 1 Dover Place Ashford, Kent TN23 1FB 18 April 2023 

- 5 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2022** 

||||**2022**|||**2021**|
|---|---|---|---|---|---|---|
||**Notes**|**Unrestricted**|**Designated**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**Funds**|**Funds**|**Funds**|
|||**£**|**£**|**£**|**£**|**£**|
|**INCOME FROM**|||||||
|Donations and legacies|**2a**|65,937|-|5,776|**71,713**|**68,820**|
|Investment income|**2b**|1,474|1,987|12|**3,473**|**137**|
|Income from charitable and|||||||
|ancillary trading|**2c**|20,377|-|-|**20,377**|**14,423**|
|CJRS|**2d**|-|-|-|**-**|**1,360**|
|Diocesan Grants|**2d**|-|-|16,900|**16,900**|**-**|
|**TOTAL INCOME**||**87,788**|**1,987**|**22,688**|**112,463**|**84,740**|
|**EXPENDITURE ON:**|||||||
|**Charitable activities**|**3**||||||
|Parish share||25,339|-|15,000|**40,339**|**42,948**|
|Mission and charities||1,366|-|2,341|**3,707**|**1,260**|
|Other ordinary running costs||59,436|6,068|4,010|**69,514**|**57,754**|
|**TOTAL EXPENDITURE**||**86,141**|**6,068**|**21,351**|**113,560**|**101,962**|
|**NET INCOME/(EXPENDITURE)**|||||||
|**BEFORE TRANSFERS**||1,647|(4,081)|1,337|**(1,097)**|**(17,222)**|
|Transfer between funds|**8**|(2,000)|2,000|-|**-**|**-**|
|**NET MOVEMENTS IN FUNDS**||**(353)**|**(2,081)**|**1,337**|**(1,097)**|**(17,222)**|
|**RECONCILIATION OF FUNDS**|||||||
|**BALANCES BROUGHT FORWARD AT 1**|||||||
|**JANUARY 2022**||49,143|202,422|13,672|**265,237**|**282,459**|
|**BALANCES CARRIED FORWARD AT**|||||||
|**31 DECEMBER 2022**||**48,790**|**200,341**|**15,009**|**264,140**|**265,237**|



- 6 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2021** 

|**Notes**<br>**Unrestricted**<br>**Designated**<br>**Restricted**<br>**Total**<br>**Funds**<br>**Funds**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>**INCOME FROM**<br>Donations and legacies<br>**2a**<br>65,584<br>-<br>3,236<br>**68,820**<br>Investment income<br>**2b**<br>62<br>75<br>-<br>**137**<br>Income from charitable and<br>ancillary trading<br>**2c**<br>14,423<br>-<br>-<br>**14,423**<br>Government Grant - CJRS<br>**2d**<br>1,360<br>-<br>-<br>**1,360**<br>**TOTAL INCOME**<br>**81,429**<br>**75**<br>**3,236**<br>**84,740**<br>**EXPENDITURE ON:**<br>**Charitable activities**<br>**3**<br>Parish share<br>42,948<br>-<br>-<br>**42,948**<br>Mission and charities<br>1,260<br>-<br>-<br>**1,260**<br>Other ordinary running costs<br>53,514<br>2,200<br>2,040<br>**57,754**<br>Exceptional costs<br>-<br>-<br>-<br>**-**<br>**TOTAL EXPENDITURE**<br>**97,722**<br>**2,200**<br>**2,040**<br>**101,962**<br>**NET EXPENDITURE BEFORE**<br>**TRANSFERS**<br>(16,293)<br>(2,125)<br>1,196<br>**(17,222)**<br>Transfer between funds<br>**8**<br>(39,000)<br>39,000<br>-<br>**-**<br>**NET MOVEMENTS IN FUNDS**<br>**(55,293)**<br>**36,875**<br>**1,196**<br>**(17,222)**<br>**RECONCILIATION OF FUNDS**<br>104,436<br>165,547<br>12,476<br>**282,459**<br>**49,143**<br>**202,422**<br>**13,672**<br>**265,237**<br>**2021**<br>**BALANCES**<br>**BROUGHT**<br>**FORWARD**<br>**AT 1 JANUARY 2021**<br>**BALANCES CARRIED FORWARD AT**<br>**31 DECEMBER 2021**|**2020**<br>**Total**<br>**Funds**<br>**£**|
|---|---|
||**98,494**<br>**1,020**<br>**7,101**<br>**3,384**|
||**109,999**|
||**42,542**<br>**530**<br>**54,897**<br>**18,638**|
||**116,607**|
||**(6,608)**<br>**-**|
||**(6,608)**<br>**289,067**|
||**282,459**|



. 

- 7 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **BALANCE SHEET AS AT 31 DECEMBER 2022** 

|**Notes **<br>**CURRENT ASSETS**<br>Debtors & Prepayments<br>**6**<br>Bank and Cash Balances<br>**CREDITORS: amounts falling due**<br>**within 1 year**<br>Other creditors<br>**7**<br>**NET CURRENT ASSETS**<br>**NET ASSETS**<br>**PARISH FUNDS**<br>General Fund<br>**8**<br>Legacy Fund<br>**8/9**<br>Roof Fund<br>**8/9**<br>Organ Fund<br>**9**<br>Quinquennial Sinking Fund<br>**8/9**|**Unrestricted Designated**<br>**Restricted**<br>**Total**<br>**Funds**<br>**Funds**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>1,191<br>-<br>-<br>**1,191**<br>56,879<br>200,341<br>15,009<br>**272,229**<br>**58,070**<br>**200,341**<br>**15,009**<br>**273,420**<br>9,280<br>-<br>-<br>**9,280**<br>**9,280**<br>**-**<br>**-**<br>**9,280**<br>**48,790**<br>**200,341**<br>**15,009**<br>**264,140**<br>**48,790**<br>**200,341**<br>**15,009**<br>**264,140**<br>2,208<br>-<br>-<br>**2,208**<br>46,582<br>50,000<br>10,247<br>**106,829**<br>-<br>108,427<br>3,243<br>**111,670**<br>-<br>-<br>869<br>**869**<br>-<br>41,914<br>650<br>**42,564**<br>**48,790**<br>**200,341**<br>**15,009**<br>**264,140**<br>**2022**|**2021**<br>**Total**<br>**Funds**<br>**£**|
|---|---|---|
|||**2,033**<br>**270,242**|
|||**272,275**|
|||**7,038**|
|||**7,038**|
|||**265,237**|
|||**265,237**|
|||**434**<br>**109,106**<br>**114,859**<br>**857**<br>**39,981**|
|||**265,237**|



Approved by the Parochial Church Council on                                  and signed on its behalf by: 

M Gilham  (Church Warden) D Dadson    (Hon Treasurer) 

- 8 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** 

## **1 ACCOUNTING POLICIES** 

- **1.1 Basis of preparation** 

The Parochial Church Council of Holy Trinity with Christ Church Folkestone is a registered charity in England and Wales. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are committed to drawing as many people as possible into worship at our church and to working together with individuals and organisations in the community for the common good and furtherance of our common goals and values. The PCC maintains an overview of worship, outreach, ministry and mission. 

The charity constitutes a public benefit entity as defined by FRS102 

The accounts (financial statements) have been prepared in accordance with the Church Accounting Regulations 2006 together with the Statement of Recommended Practice: Accounting and reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 as amended by bulletin 1 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011 and the UK Generally Accepted Practice effective from 1 April 2015 

The accounts (financial statements) have been prepared to give a 'true and fair' view and 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial reporting Standard applicable in the UK and the Republic of Ireland (FRS102) issued on 16 July 2014. 

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. 

The accounts 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 main affiliation to another body nor those that are informal gatherings of church members. 

- **1.2 Funds accounting** Unrestricted Funds represent funds of the PCC that are not subject to restrictions regarding their use. In particular these consist of the General Fund which is used for the day to day purposes of the PCC and that part of the Legacy Fund which is not restricted by the terms of individual wills. Funds designated by the PCC are also unrestricted. 

Restricted Funds are funds that can only be used for particular restricted purposes within the objects of the charity. Restriction arises when specified by the donor, or a will, or when funds are raised for particular restricted purposes. 

The Designated Fund balance has been represented to ensure that fund balances stated accurately reflect the designation policy adopted by the trustees. 

- **1.3 Income recognition** All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income, any performance conditions attached to the item of income have been met and it is probable that the income will be received.  The following specific policies are applied to particular categories of income: 

   - Voluntary income including donations, collections and gifts is included in full in the Statement of Financial Activities when receivable.  Planned Giving is recognised only when received. 

   - Recovery of Gift Aid tax relief is recognised to the extent necessary to match with its related income. 

   - Rental income from letting or hire of church and hall premises is recognised when the letting or hire takes place. 

   - - Investment income is included when receivable. - Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. 

- **1.4 Expenditure recognition** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs to that category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. 

   - Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them. 

   - Exceptional costs are one off costs that are not of a normal recurring nature. 

   - - Irrecoverable VAT is charged to the Statement of Financial Activities in the year in which it is incurred 

- 9 - 



**PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** 

## **1 ACCOUNTING POLICIES - CONTINUED** 

## **1.5 Fixed assets** _**Consecrated Land and Buildings and Moveable Church Furnishings**_ 

Consecrated and beneficed property is excluded from the accounts by s10 Charities Act 2011. No value is placed on moveable church furnishings held by the church wardens on special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property. All expenditure incurred during the year on consecrated beneficed buildings and moveable church furnishings, whether maintenance or improvement, is written off as expenditure in the Statement of Financial Activities and separately disclosed. 

## _**Other Fixtures Fittings and Office Equipment**_ 

Equipment used within church premises is written off in the year of acquisition. 

## **1.6 Tax** 

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes 

## **1.7 Going concern** 

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. This assessment has been made in respect of a period of at least one year from the date of approval of these financial statements. Covid-19 is continuing to impact on the finances of the charity. The recent relaxation of Covid related restrictions has presented the opportunity to restore income as normal usage of church buildings returns. Further measures are being planned for the restoration and improvement of income from all sources, including regular giving, donations, hire of buildings, musical events and all other fundraising activities. The trustees are of the opinion that these measures are sufficient, taking into account the current level of reserves, for the charity to be able to continue as a going concern. 

## **1.8 Judgements and key sources of information uncertainty** 

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. No judgements or key assumptions were made in the preparation of the accounts 

## **2 Income from** 

|**Income from**<br>**a.**<br>**Voluntary income**<br>Planned Giving<br>Gift Aid<br>Open Plate Collections<br>Gifts, Donations and Miscellaneous<br>Legacies<br>Mission & Links<br>**b.**<br>**Investments, Dividends and Interest**<br>**c.**<br>**Charitable and Ancillary Income**<br>Hire of Church Hall<br>Hire of Church<br>Fundraising<br>Fees<br>Miscellaneous<br>**d.**<br>**Grants**<br>CJRS<br>Diocesan Grants - Parish Share<br>Diocesan Grant - Fuel Costs<br>**Total income**|**Unrestricted**<br>**Designated**<br>**Restricted**<br>**Funds**<br>**Funds**<br>**Funds**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>32,686<br>-<br>-<br>32,686<br>9,578<br>-<br>-<br>9,578<br>4,271<br>-<br>-<br>4,271<br>7,122<br>-<br>5,776<br>12,898<br>10,000<br>-<br>-<br>10,000<br>2,280<br>-<br>-<br>2,280<br>65,937<br>-<br>5,776<br>71,713<br>1,474<br>1,987<br>12<br>3,473<br>4,244<br>-<br>-<br>4,244<br>6,795<br>-<br>-<br>6,795<br>5,104<br>-<br>-<br>5,104<br>4,008<br>-<br>-<br>4,008<br>226<br>-<br>-<br>226<br>20,377<br>-<br>-<br>20,377<br>-<br>-<br>-<br>-<br>-<br>-<br>15,000<br>15,000<br>-<br>-<br>1,900<br>1,900<br>-<br>-<br>16,900<br>16,900<br>87,788<br>1,987<br>22,688<br>112,463<br>**2022**|**2021**<br>**Total**<br>**£**|
|---|---|---|
|||33,138<br>11,223<br>2,089<br>17,237<br>5,000<br>133|
|||68,820|
|||137|
|||1,600<br>2,030<br>3,629<br>7,084<br>80|
|||14,423|
|||1,360<br>-<br>-|
|||1,360|
||||
|||84,740|



- 10 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** 

|**3**<br>**Analysis of expenditure**<br>**Cost of charitable activities**<br>**Parish share**<br>**Missions and charities**<br>**Other ordinary running costs**<br>Contribution to Joint Benefice<br>Payroll costs<br>Music<br>Church Fees<br>Church Hall running costs<br>Heat, light and water<br>Telephone and Broadband<br>Insurance<br>Publicity, postage IT and stationery<br>Purchase of Card Machine Donation Station<br>Maintenance of buildings and fabric<br>Maintenance of grounds<br>Organ and piano maintenance<br>Service expenses<br>Income Generation Costs<br>Licences<br>Miscellaneous expenses<br>Accountancy<br>**Total expenditure**|**Direct**<br>**Costs**<br>**Support**<br>**Costs**<br>**Staff**<br>**Costs**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>40,339<br>-<br>-<br>**40,339**<br>3,707<br>-<br>-<br>**3,707**<br>9,600<br>-<br>-<br>**9,600**<br>-<br>-<br>8,532<br>**8,532**<br>9,672<br>-<br>-<br>**9,672**<br>1,259<br>-<br>-<br>**1,259**<br>1,987<br>-<br>-<br>**1,987**<br>-<br>10,225<br>-<br>**10,225**<br>-<br>602<br>-<br>**602**<br>-<br>4,816<br>-<br>**4,816**<br>-<br>852<br>-<br>**852**<br>-<br>1,200<br>-<br>**1,200**<br>-<br>10,552<br>-<br>**10,552**<br>-<br>2,349<br>-<br>**2,349**<br>-<br>1,142<br>-<br>**1,142**<br>1,183<br>-<br>-<br>**1,183**<br>2,558<br>-<br>-<br>**2,558**<br>300<br>-<br>-<br>**300**<br>705<br>-<br>-<br>**705**<br>1,980<br>-<br>-<br>**1,980**<br>29,244<br>31,738<br>8,532<br>**69,514**<br>73,290<br>31,738<br>8,532<br>**113,560**<br>**2022**|**2021**<br>**Total**<br>**£**|
|---|---|---|
|||42,948|
|||1,260|
|||9,600<br>8,152<br>8,646<br>3,183<br>1,176<br>6,321<br>577<br>4,583<br>1,087<br>-<br>6,966<br>2,417<br>972<br>633<br>886<br>267<br>488<br>1,800|
|||57,754|
||||
|||101,962|



## **4 Staff Costs** 

The average number of employees during the year was 1 (2021: 1). 

## **5 Trustees and key management personnel remuneration and expenses** 

Trustees received no remuneration during the year for their duties as trustees (2021: None). 

4 Trustees (2021: 5) were reimbursed expenses totalling £1,582 (2021: £690) in respect of printing and stationery and income generation costs, 

The trustees consider the board of trustees as the key management personnel of the charity in charge of directing and controlling, running and operating the PCC on a day to day basis. As detailed above, no trustees received remuneration for acting as trustees during the period. 

## **6 Debtors** 

|**Debtors**<br>Debtors<br>Prepayments|**2022**<br>**£**<br>745<br>446<br>1,191|**2021**<br>**£**<br>1,463<br>570|
|---|---|---|
|||2,033|



-11 - 



## **PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** 

|**7**|**Creditors**|||||**2022**|**2022**|**2021**|
|---|---|---|---|---|---|---|---|---|
|||||||**£**||**£**|
||Wedding deposits||||||1,635|2,607|
||Other creditors||||||7,645|4,431|
||||||||9,280|7,038|
|**8**|**Unrestricted funds - 2022**|**Balance**||||||**Balance**|
|||**brought**||||**Transfer**||**carried**|
|||**forward**|**Income**||**Expenditure**|**between**|**funds**|**forward**|
|||**£**|**£**||**£**|**£**||**£**|
||Unrestricted funds||||||||
||General Fund|434|97,576||(106,802)|11,000||2,208|
||Legacy Fund (part)|48,709|11,474||(601)|(13,000)||46,582|
||Designated funds||||||||
||Legacy Fund (part)|50,000||-|-||-|50,000|
||Roof Fund (Part)|113,091|1,474||(6,068)||(70)|108,427|
||Quinquennial Sinking Fund|39,331||513|-||2,070|41,914|
|||251,565|111,037||(113,471)||-|249,131|
||**Unrestricted funds - 2021**|**Balance**||||||**Balance**|
|||**brought**||||**Transfer**||**carried**|
|||**forward**|**Income**||**Expenditure**|**between**|**funds**|**forward**|
|||**£**|**£**||**£**|**£**||**£**|
||Unrestricted funds||||||||
||General Fund|4,702|76,368||(96,110)|15,474||434|
||Legacy Fund (part)|99,734|5,061||(1,612)|(54,474)||48,709|
||Designated funds||||||||
||Legacy Fund (part)|25,000||-|-|25,000||50,000|
||Roof Fund (Part)|113,032||59|-||-|113,091|
||Quinquennial Sinking Fund|27,515||16|(2,200)|14,000||39,331|
|||269,983|81,504||(99,922)||-|251,565|
||Designated Funds||||||||
||Legacy Fund (part)|This fund represents legacies received that are for no specific purpose but which|||||||
|||have been set aside by the trustees towards future emergency|||||use||
||Roof Fund (part)|This fund represents part of a legacy|||received that was for no specific purpose but||||
|||which has been allocated|by the|trustees towards the||roof replacement|||
||Quinquennial Sinking Fund (part)|This fund represents amounts||set|aside by the|trustees|towarrds the cost of||



This fund represents amounts set aside by the trustees towarrds the cost of maintenance work recommended periodically by quinquennial reports required by Canterbury Diocese 

|**9**<br>**Restricted funds - 2022**<br>Legacy Fund (part)<br>Organ Fund<br>Verger Fund<br>Heating Fund<br>Parish Share Fund<br>Missions and Charities<br>Roof Fund<br>Quinquennial Sinking Fund (Part)<br>**Restricted funds - 2021**<br>Legacy Fund (part)<br>Organ Fund<br>Verger Fund<br>Roof Fund<br>Quinquennial Sinking Fund (Part)|**Balance**<br>**brought**<br>**forward**<br>**Income**<br>**Expenditure**<br>**Transfer**<br>**between funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>10,397<br>-<br>(150)<br>-<br>857<br>12<br>-<br>-<br>-<br>1,960<br>(1,960)<br>-<br>-<br>1,900<br>(1,900)<br>-<br>-<br>15,000<br>(15,000)<br>-<br>-<br>2,341<br>(2,341)<br>-<br>1,768<br>1,475<br>-<br>-<br>650<br>-<br>-<br>-<br>13,672<br>22,688<br>(21,351)<br>-<br>**Balance**<br>**brought**<br>**forward**<br>**Income**<br>**Expenditure**<br>**Transfer**<br>**between funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>10,637<br>-<br>(240)<br>-<br>857<br>-<br>-<br>-<br>-<br>1,800<br>(1,800)<br>-<br>982<br>786<br>-<br>-<br>-<br>650<br>-<br>-<br>12,476<br>3,236<br>(2,040)<br>-|**Balance**<br>**carried**<br>**forward**<br>**£**<br>10,247<br>869<br>-<br>-<br>-<br>-<br>3,243<br>650|
|---|---|---|
|||15,009|
|||**Balance**<br>**carried**<br>**forward**<br>**£**<br>10,397<br>857<br>-<br>1,768<br>650|
|||13,672|



The Verger Fund represents donations received that are specifically towards the costs of employing a verger The Heating Fund represents a Diocesan Grant received specifically as a contribution towards heating costs The Parish Share Fund represents a Diocesan grant against the parish share assessment for 2022 Missions and Charities relates donations received and disbursed in respect the specific appeals (Ukraine and Pakistan Appeals 

- 12 - 



**PAROCHIAL CHURCH COUNCIL OF HOLY TRINITY WITH CHRIST CHURCH FOLKESTONE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** 

- **9** Legacy Fund 

Organ Fund 

Roof Fund 

Quinquennial Sinking Fund (part) 

This fund represents legacies received that are for a specific purpose and restricted in accordance with the terms of the will. See accounting policy note 1.2. 

This fund was established to provide major refurbishments and is not to cover routine maintenance or general running costs. 

It is considered that major repairs or possible replacement of the church roof will be needed in the foreseeable future and this fund was set up to receive donations and other finance towards this project. 

This fund represents donations received specifically towards the cost of maintenance work recommended periodically by quinquennial reports required by Canterbury Diocese 

## **10 Analysis of net assets between funds - 2021** 

|**lysis of net assets between funds - 2021**||
|---|---|
|Current Assets<br>Current Liabilities|**Unrestricted**<br>**funds**<br>**Designated**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>56,181         202,422           13,672<br>272,275<br> (7,038) -                     -<br> (7,038)|
||49,143         202,422           13,672<br>265,237|



## **11 Related Party Transactions** 

Mr Tim Parsons was paid £9,120 (2021: £8,400) under contract with Holy Trinity Church to provid director of music servfices.  Except in this respect and the occasional reimbursementto trustees of properly incurred expenses (see Note 5) there were no related party transactions in the current or preceding year. 

-13 -