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2021-12-31-accounts

ST JOHN THE BAPTIST CHURCH KNUTSFORD 2021 ANNUAL REPORT

St John the Baptist Church, Knutsford

ANNUAL REPORT 2021

REPORT AND ACCOUNTS - TABLE OF CONTENTS

CHARITY INFORMATION 2
BACKGROUND 3
MEMBERSHIP OF THE PCC 3
COMMITTEES 4
STANDING COMMITTEE 4
FINANCE COMMITTEE 5
MISSION COMMITTEE 5
BUILDINGS AND MAINTENANCE 5
ELECTORAL ROLL 6
REVIEW OF ACTIVITIES 6
TEACHING OBJECTIVES 6
YOUTH AND CHILDREN'S MINISTRY 7
SAFEGUARDING 8
SMALL GROUPS 8
MISSION REPORT 9
CHURCH HILL CAFE 9
MARRIAGE PREPARATION 9
PLANS FOR THE YEAR AHEAD 9
FINANCE 10
INVESTMENT POLICY 10
RESERVES 10
FIXED ASSETS 10
RISK ASSESSMENT 10
CONCLUSION 10
FINANCIAL STATEMENTS

1

St John the Baptist Church, Knutsford

ANNUAL REPORT 2021

CHARITY INFORMATION

INCUMBENT

Revd Nigel Atkinson

INDEPENDENT EXAMINER

Lourens du Plessis ACA CA(SA) Stewardship 1 Lamb’s Passage London EC1Y 8AB

BANKERS Barclays Bank plc Leicester LE87 2BB

PRINCIPAL OFFICE

St John the Baptist Church Church Office Church Hill Knutsford Cheshire WA16 6DH

Charity Registration Number 1131500

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St John the Baptist Church, Knutsford

ANNUAL REPORT 2021

The Revd Nigel Atkinson is the Vicar of St John the Baptist Church, Knutsford. Revd Tom Hollingsbee is Associate Vicar for Knutsford and Toft, and Hannah Dobson is our Youth Worker. Revd Helen Eccles, Deacon for Toft, also takes on some duties for Knutsford.

BACKGROUND

St John’s PCC has the responsibility of co-operating with the Incumbent, the Associate Vicar and the Youth Worker for Knutsford in promoting in the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. In particular it aims to encourage the Church family towards the vision of a Church which:

It also has maintenance responsibilities for the Church and the Church Centre, 92 Grove Park and 6 Lilac Avenue.

MEMBERSHIP OF THE PCC

Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules.

During the year the following served as members of the PCC:

Incumbent: Revd Nigel Atkinson Associate Vicar Revd Tom Hollingsbee Readers: Dr Thain Flowers – Reader Emeritus Deacon: Revd Helen Eccles Wardens: Stephen Watson Andy Worth Assistant Curate: Revd Mel Lacy

Representative on General Synod: Debbie Woods

Representatives on the Deanery Synod: Neil Wall Sue Broadbent John Lee Debbie Woods

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St John the Baptist Church, Knutsford ANNUAL REPORT 2021

Elected Members: Steve Kitcher ( ex-officio) Ian Robertson (2018-2021) Jane Cartmel (2018-2021) Bill Tamkin (2018-2021) Candace Jackson (2018-2021) Emily Pegg (2019 – 2022) Charlotte Blakemore (2018-2021) Rowena Nixon (2020-2023) Ken McPhail (2020-2023) Hannah Waller (2020-2023) Stewart Dally (2020-2023) Elaine Tamkin (2021-2024) Dave Broadbent (2021-2024) Geoff Locke (2021-2024) Tania Adams (2021-2024) Neil Wall Sue Broadbent John Lee

In attendance: Chris Hogg (PCC Secretary), Hannah Dobson

The full PCC met six times during the year to deal with normal business. The PCC Committees met as and when necessary and their deliberations were received by the full PCC and fully discussed when appropriate.

Statement of PCC Responsibilities

Under the Charities Act 2011, the PCC is required to prepare a statement of accounts for each accounting year.

They are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the church and to ensure that such accounts comply with the Statements of Recommended Practice and the Regulations made under the Charities Act 2011. They also have a responsibility to safeguard the assets of the church and to take reasonable steps for the prevention of fraud and other irregularities and to provide reasonable assurances that:

  1. The church is operating efficiently and effectively

  2. Its assets are safeguarded against unauthorised use or disposition

  3. Financial information used within the church or for publication is reliable

  4. The church complies with relevant laws and regulations

COMMITTEES

The PCC operates through a number of Committees, which meet regularly and report to full meetings of the PCC.

STANDING COMMITTEE

This is the only committee required by law.

Terms of reference

Members: Revd Nigel Atkinson (Vicar), Steve Kitcher, Andy Keeble, Debbie Woods, Andy Worth (Churchwarden) and Stephen Watson (Churchwarden).

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ANNUAL REPORT 2021

St John the Baptist Church, Knutsford

FINANCE COMMITTEE

Terms of reference

Members: Revd Nigel Atkinson (Vicar), Debbie Woods, Andy Worth (Churchwarden) Stephen Watson (Churchwarden), Steve Kitcher (Treasurer), Andy Keeble.

MISSION COMMITTEE

Terms of reference

To recommend ways in which the PCC should apply resources to:

Members: Revd Nigel Atkinson, Dan Young, Beki Parratt, Bill Tamkin, Richard Reeve and Debbie Woods.

BUILDINGS AND MAINTENANCE

In 2021 Covid continued to affect our use of the church and the works undertaken, my direct involvement only began in the autumn, so apologies if there are omissions of work carried out earlier. Giles and others have carried out numerous essential tasks as required, and we can give thanks for them and their continued service.

In November an extensive to-do list was provided by both Andy Lynes and the architects relating to the Quinquennial Reports which have been received. Initial visits were made to all the properties to get a feel for where we are at and to prioritise the work in terms of need. Some items have already been completed. We had a meeting with the Architect to tie in some of the minor works needed in order that they may be carried out by specialist contractors when they are known to be working locally on similar projects.

Church Internal

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St John the Baptist Church, Knutsford ANNUAL REPORT 2021

Church External

Church Centre

The furniture and fittings within the Centre are starting to show their age which increased the amount of maintenance needed. It will require a fundamental rethink of how we utilise the space to steer what refurbishment might look like. In the meantime, upgrading of water taps in the toilets and the conversion of the ceiling lighting in the Drop to LED is being carried out ahead of any significant upgrade works.

Grove Park

The house requires significant work as outlined within the quinquennial report, not only to bring it up to standard but also to include work needed to bring the property up to the requirements of the Diocese to meet the needs of the Associate Vicar. This is currently being looked at with a view to raising funds via a Gift Day Appeal to church family and to complete the works in 2022 to accommodate the Associate Vicar and family. This will be carried out when the property is vacated in the summer of 2022.

Lilac Ave

The property is the home of our Youth Worker and whilst there are some minor issues to be addressed

ELECTORAL ROLL

There are 181 names on the Electoral Roll, a net decrease of two. Four new names have been added and six removed.

REVIEW OF ACTIVITIES

In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.

TEACHING OBJECTIVES

St John’s has had a challenging and difficult year as we endured the rigours and demands of the pandemic. Nevertheless, sermons were preached on the Letter to the Hebrews, John 17 (during Lent), Philippians, Proverbs, Philemon, Revelation and Luke (during Advent). Many of these services and sermons were being accessed online.

Evening Services recommenced on 3[rd] October 2021 under the overarching title Life is a Journey in which we looked at the themes of Conversion, Change, Falling, Biblical Revelation, Prayer, the Incarnation and the Crucifixion. Two sessions were spent looking at some of the issues in Living in Love and Faith . One evening meeting was a Prayer Meeting. On 19[th] December we had a Carol Service.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2021

YOUTH AND CHILDREN’S MINISTRY

As one would expect, the continued pandemic restrictions had a significant impact on the Youth and Children’s work over the last year.

Due to the January lockdown, in-person provision for children and families during the Sunday services had to stop. However, All-Age slots were integrated into the Live-streamed services to help all members of our Church family to engage in the worship service. Also, there was a specific ‘Families’ zoom session following each service to provide opportunities for those with young families to share the highs and lows of lockdown life and pray for one-another.

The two youth discipleship groups also had to be moved to Zoom on Thursday evenings. Even with the challenges of being online, the youth had a great time catching up each week and looking deeper into the Hebrews 11 and John 17 passages that had been preached the previous Sunday morning. To help combat some of the loneliness of lockdown, there were Zoom Socials held on Sunday evenings which included various challenges, games and quizzes, providing much needed fun and fellowship for the young people.

The Easter weekend saw the lifting of some restrictions and so the Family Special sessions (0-10yrs) on a Sunday morning could continue as before Christmas and Pathfinders (10-14yrs), could begin again for the first time since the start of the pandemic. Then, after much prayer and involvement of volunteer leaders, mid-June saw the start of the full Junior Church programme with the inclusion of more focused age-specific teaching for Crèche (0-2yrs), Scramblers (3-5yrs) and Explorers (6-9yrs).

Mid-week youth activities were also able to resume in person during the summer term. The first half term was spent doing a Bible Overview and the second took the theme of Wisdom from the Sunday morning series in Proverbs and applied it to specific areas of the lives of the young people. Topics included friendships, attitudes to work, use of social media and video gaming. There was also a successful summer BBQ held in the grounds of Toft Church where 3 young people were “sent off” to university and 2 soon-to-be yr6s were welcomed into Youth at St John’s.

After the holidays, all Children’s and Youth groups continued to run on Sunday mornings, with Explorers and Pathfinders following the same teaching series as the adults in Revelation and Advent. The young people spent Thursday evening that term going through a series on “What is the Church” aiming to answer their questions, dig into some of the Biblical language and imagery of the Church and encourage the youth to see, value and live out their role in the body of Christ. The new Sunday evening services helped in this by providing great opportunities for the older youth to build relationships, serve, pray with, and discuss and apply God’s Word with the wider Church family.

Tom and Hannah have loved getting to know the families at St John’s better and working with the children and young people. Despite the stinted form of church life earlier in the year, there have been many encouragements including having some new young people getting plugged into youth activities and church life at St John’s. They are immensely thankful for all of the support from the church family and especially the dedicated volunteers who have served the families so faithfully over the past year. Mostly they are thankful for God’s grace in enabling the opening up of these ministry opportunities and his sustaining love and care throughout.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2021

SAFEGUARDING

During the past year we can be grateful that there have been no incidents that required reporting to the Safeguarding Office at Chester Diocese. Nevertheless, we regularly seek their advice and guidance over policy and practicalities.

With regard to the PCC’s obligations to safeguard children and vulnerable adults, the members of the PCC confirm that they have complied with their duties under section 5 of the Safeguarding and Clergy Discipline Measure 2016.

Indeed, the heart of good safeguarding at St John’s is based on each of us looking out for each other and in particular those who are most vulnerable within our community. Early intervention is very important so I would ask that if anyone has any concerns during this coming year then please contact me so that we can prevent inappropriate incidents occurring. Can I also encourage anyone who has any responsible role within St John’s Knutsford or Toft that they undertake the free training provided by the Church of England. This can be accessed at: Safeguardingtraining.cofeportal.org

Basic Awareness and Safeguarding Foundations are the two courses that are suitable and each can be

SMALL GROUPS

It has been a year of two halves for our small groups. As the year started with the third national lockdown, we continued with Service Station on a Tuesday night. We gathered together as a large group over Zoom to sing together, listen to a Bible talk and split into groups to discuss and pray. The teaching tracked the content from the main Sunday service and sought to apply it more deeply. We maintained this format until July.

Although limited in its scope and only a temporary solution that helped us meet together during the pandemic, we’re very grateful for Service Station. It provided for many a much-needed connection and encouragement during the week. The number of attendees remained steady throughout the whole at somewhere between 50-60.

As society opened up over the second half of the year, we made the decision to stop Service Station and to encourage groups to meet on their own from September. Five groups that existed before the pandemic met and one new daytime women’s group started. Three of these met online and three in person. These all followed the teaching of the morning sermon series, looking at the early chapters of the book of Revelation. Many thanks to all the leaders who have tirelessly served their groups over the last months.

It is worth noting that there has been a reduction in the number of groups from before the pandemic. This isn’t wholly surprising. The pandemic has caused many to stop, slow down and to rethink priorities. Likewise, it affords us a similar opportunity to look at how to grow and refresh the small group ministry moving forward.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2021

MISSION REPORT

Due to the Covid-19 pandemic, normal mission activities were/are suspended. However, it has been a blessing to be able to welcome our mission partners to the St John’s prayer gatherings via Zoom and to hear from them in person and to pray with them. Wanyeki and Mary did visit us in person for an update on their ministry and potential retiring.

During the year we have been able to support the following: Wanyeki and Mary Mahiaini (Kenya); the Kralovi family (Czech Republic); Crosslinks and Growing Young Disciples.

FUNERALS

There were eight funerals in 2021. Five were members of the Church Family.

CHURCH HILL CAFÉ

The year began with a lockdown that ran from Dec 2020 until May 2021. The cafe was closed over that period. Following Covid guidelines, we reopened on May 17th. The cafe was well used again as soon as we opened and customers were pleased for the space and other measures in place to protect them. We have an average of over 200 people each week coming through the cafe, although some days are quieter and others much busier, such as when Rock Choir are using the church building. Other regular groups include friends from the Methodist Church, some members of the women's Bible study group, Oasis mums, a language class, a book club, and regular visits from our own Cornerstone group (birthday parties and small get together meetings). Having held the same prices since 2019, in September we increased our prices across the menu. Our main ingredients supplier withdrew this year due to transport issues. We set up an account with a different supplier. We have had one inspection from the Food Standard Agency who advised some very minor adjustments which were immediately implemented. We

PLANS FOR THE YEAR AHEAD

As we are gradually emerging out of Covid we are hoping to build and consolidate on the foundations laid during the pandemic. We are thankful for new members that have joined. We will need to think carefully about what provision will continue to be provided online. We are hoping to re-energise the Youth work. Richard Reeve and his family will be starting a curacy at St Chads Handforth and Tom and his family will be occupying Grove Park. God willing. A lot of preparation work will need to be done and funds will need to be raised. We will continue with our pattern of services and are grateful that the 6:30 Service is enthusiastically supported.

MARRIAGE PREPARATION

Over the course of year there were two weddings and one thanksgiving. Preparation for one of the weddings was delivered satisfactorily elsewhere. The other wedding couple were prepared by Nigel.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2021

FINANCE

In 2021 expenditure exceeded income by £24,709 (2020: £14,230). At year-end unrestricted general cash reserves amounted to £59,406, designated cash reserves were £17,015 and restricted cash reserves were £17,681. Full details of the various funds are set out in note 15 to the accounts.

The PCC set aside 10% of regular and unrestricted giving for mission purposes in the unrestricted Mission Giving Fund. Mission giving is detailed in notes 7c and 15 to the financial statements.

We received ca.£16,000 Covid-related financial support through the Job Retention Scheme and local council grants to offset our costs.

The Parish Share paid in 2021 was £110,509 (2020: £77,141). The increase shows the first full-year cost (Jan-Dec) following the appointment of an Associate Vicar.

INVESTMENT POLICY

The Church’s funds were held as cash at Barclays Bank plc. The Church does not invest in equity funds.

RESERVES

PCC reviewed the Reserves Policy. It was agreed that the target level of reserves should continue to represent available cash held in unrestricted funds (excluding the Mission Fund) and that a minimum target of £60,000 was the most appropriate target, based on an assessment of key financial risks.

At year-end the total unrestricted cash reserves were £76,420. An analysis of all Church funds is included in the Financial Statements note 15.

FIXED ASSETS

In the opinion of the PCC, the market value of the land and buildings exceeds the amount at which they are stated in the accounts but they are unable to quantify the excess.

RISK ASSESSMENT

The financial stability of the Church depends to a significant extent on the giving of the church family and our ability to balance this and other sources of income in line with Church expenditure.

With a historical church building, unexpected repair costs will arise from time to time. However, it is relevant to note that a Maintenance Group assists the Church and the PCC to maintain the buildings which the Church owns and for which it is responsible. These are the Church, Church Centre, 92 Grove Park and 6 Lilac Avenue. This enables necessary work to be highlighted and planned through the budget process.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2021

CONCLUSION

St Johns has had another busy year, even though the church buildings were unavailable for significant periods.

We are thankful for the continued efforts from everyone involved in live streaming services and engaging remotely with various groups.

Over the course of the year we maintained resilient financial performance. Strong one-off donations offset lower collections and standing orders. We continued to pay close attention to discretionary spending wherever possible to ensure adequate reserves were maintained.

The outcome for the year was relatively positive, given the circumstances, and we are looking forward to higher levels of activity in the year ahead.

Nigel Atkinson

Revd Nigel Atkinson

Date: 6 July 2022

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INDEPENDENT EXAMINER'S REPORT

TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF

PCC OF ST JOHN THE BAPTIST KNUTSFORD ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 December 2021 on pages 13 to 23 following, which have been prepared on the basis of the accounting policies set out on pages 15 to 16.

Responsibilities and basis of report

As the trustees of the charity, the members of the PCC are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act’).

I report in respect of my examination of the Charity’s accounts carried out 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

Since the Charity’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 Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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:

  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 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.

Lourens du Plessis

Lourens du Plessis ACA CA(SA) Institute of Chartered Accountants in England and Wales

Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: 14 Jul 2022

Page 12

PCC OF ST JOHN THE BAPTIST KNUTSFORD

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income and endowments
EXPENDITURE ON:
Charitable activities
7
Other trading activities
8
Total expenditure
Net income/(expenditure)
Transfers between funds
15
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
15		 Unrestricted
Funds
£
193,530
13,121
54,852
9
261,512
266,878
33,577
300,455
(38,943)
(2,237)
(41,180)
491,235
450,055		 Restricted
Funds
£
22,242
-
-
-
22,242
8,008
-
8,008
14,234
2,237
16,471
1,210
17,681		 Total
Funds
2021
£
215,772
13,121
54,852
9
283,754
274,886
33,577
308,463
(24,709)
-
(24,709)
492,445
467,736		 Total
Funds
2020
£
221,458
18,262
47,076
78
286,874
269,827
31,277
301,104
(14,230)
-
(14,230)
506,675
492,445

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

All income and expenditure derive from continuing operations.

The notes on page 15-22 form part of these accounts.

Page 13

PCC OF ST JOHN THE BAPTIST KNUTSFORD

BALANCE SHEET

AS AT 31 DECEMBER 2021

Note
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
12
CREDITORS: Amounts falling
13
due within one year
Net current assets / (liabilities)
TOTAL NET ASSETS
FUND BALANCES
15
Unrestricted Funds
General funds
Designated funds
Restricted Funds		 Unrestricted
Funds
£
372,500
372,500
20,030
76,421
96,451
(18,896)
77,555
450,055
60,540
389,515
450,055
-
450,055		 Restricted
Funds
£
-
-
-
17,681
17,681
-
17,681
17,681
-
-
-
17,681
17,681		 Total
Funds
2021
£
372,500
372,500
20,030
94,102
114,132
(18,896)
95,236
467,736
60,540
389,515
450,055
17,681
467,736		 Total
Funds
Restated
2020
£
376,500
376,500
13,659
125,115
138,774
(22,829)
115,945
492,445
90,922
400,313
491,235
1,210
492,445

The financial statements were approved by the Board of Directors and were signed on its behalf by:

Nigel Atkinson

6 July 2022

----------------------------------------------------------------------------REV. NIGEL ATKINSON Date Charity number: 1131500

The notes on page 15-22 form part of these accounts.

Page 14

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Statutory Information

The Parochial Church Council of St John the Baptist Knutsford is a charity registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention. The financial statements include all activities for which the PCC is legally responsible; the activities of informal gatherings of church members and groups that owe their main affiliation to another body and are excluded.

These financial statements have been prepared in accordance with The Church Accounting Regulations 2006, 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 (FRS 102)' ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.

The principles adopted in the preparation of the financial statements are set out below.

a) Going concern

The PCC have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The PCC have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the PCC have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The PCC have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. In making this assessment the trustees have considered the impact of Covid-19 and have concluded that its impact on net income will not be material.

b) Income

Income (which includes planned giving, collections and other donations) is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part income is generally recognised when it is received by, or on behalf of, the PCC. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations and legacies includes:

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats and other events and courses.

Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from the Church Hill Café and from lettings of the Church Centre.

Investment income represents income generated by the charity's assets and includes bank interest.

Page 15

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

c) Expenditure

Contributions in respect of the diocesan parish share are included in the Statement of Financial Activities for all amounts agreed to being payable for the financial year. Any contributions that have not been paid over by the year end are included as a creditor.

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

The cost of raising funds is not significant and has not been separately disclosed.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

d) Fund accounting

e) Tangible fixed assets

Movable church furnishings held by the incumbent and Churchwardens on special trust for the PCC and which require a faculty for disposal are capitalised in accordance with the policy set out below. These items are regarded as inalienable property and are listed in the church's inventory which can be inspected at any reasonable time. Inalienable property acquired prior to 2000 has not been capitalised as there is insufficient cost information available.

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £5,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Freehold land Is not depreciated (because it is not consumed by use) Freehold buildings Over 75 years after taking account of the building's residual value Equipment Over 3 to 7 years

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

f) Stocks

Stocks of goods purchased for re-sale or for use by the church are stated at the lower of cost and net realisable value.

g) Pension scheme arrangements

The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.

h) Taxation

The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

Page 16

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Donations of cash and similar
Government grants
Legacies receivable
Income tax recoverable
4
Income from charitable activities
Church retreats and events
Fees
St John's Toft
Church organisations
Miscellaneous income
5
Income from other trading activities
Church Hill Café
COVID related grants for Café
Church and centre hire
Rental of Lilac Avenue
6
Investment income
Bank interest
7
Charitable expenditure
a
Costs incurred directly on specific activities
Ministry expenses:
Parish share
Staff costs
Vicar's expenses
Other staff expenses
Verger and organist fees
Church organisations
Music fund
Youth and children's work
Home groups and church courses
Church events
Service fees
Fees payable to the diocese
Other ministry costs
Property expenses:
Church running expenses
Gas and elctricity for church and centre
Centre maintenance and costs
Decreciation of church centre
Vicar's housing costs
Associate Minister's housing costs
Grove Park costs
Interest on Grove Park value linked loan
Lilac Avenue
Major maintenance costs
Grants and donations payable (note 7c)		 2021
£
171,680
10,964
-
33,128
215,772
2021
£
146
6,629
5,738
438
170
13,121
2021
£
22,268
8,536
5,250
18,798
54,852
2021
£
9
9
2021
£
110,509
26,739
2,449
2,240
529
975
2,259
859
97
170
1,126
1,386
2,510
151,848
21,924
12,636
288
4,000
6,240
25,150
990
2,189
984
102
74,503
40,775
267,126		 2020
£
186,165
-
2,000
33,293
221,458
2020
£
1,694
3,599
4,857
8,046
65
18,262
2020
£
16,851
13,304
4,712
12,209
47,076
2020
£
78
78
2020
£
77,141
78,392
3,644
2,667
479
3,743
-
3,620
154
970
-
2,236
1,536
174,582
13,114
9,385
379
4,000
6,403
9,654
5,302
2,163
737
16,970
68,108
20,183
262,873

Page 17

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

b Costs incurred on support & administration

Costs incurred on support & administration
Governance costs
Accounts preparation and independent examination
Office expenses
Publications and publicity
Total expenditure		 3,120
3,120
4,002
638
7,760
274,886		 3,120
3,120
3,663
171
6,954
269,827

Total expenditure

The fee payable to the independent examiner for preparing and examining the accounts was £3,120 (2020: £3,120); in addition the charity paid £1,111 (2020: £1,051) to Stewardship for payroll bureau services.

c Grants payable

Grant payments for UK mission
Grant payments for overseas mission
The comparatives for the previous year are as follows:
Grant payments for UK mission
Grant payments for overseas mission
The charity's principal grant payments to institutions comprised:
Crosslinks
Growing Young Disciples
St Peter's Church Rock Ferry
Hope Central
UCCF
North West Partnership
Grants to institutions for less than £1,000 each
Other expenditure
Church Hill Café expenditure
Church Hill Café salaries		 Institutions
£
19,275
18,000
37,275
Institutions
£
8,171
12,012
20,183		 Individuals
£
1,500
2,000
3,500
Individuals
£
-
-
-
2021
£
19,500
5,000
5,500
5,675
1,000
500
100
37,275
2021
£
8,432
25,144
33,577		 2021
£
20,775
20,000
40,775
2020
£
8,171
12,012
20,183
2020
£
13,512
2,321
3,400
-
-
-
950
20,183
2020
£
6,556
24,721
31,277

8 Other expenditure

9 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses

The average monthly number of employees during the year was 5 (2020: 6.5). Most of the charity's activities are carried out by volunteers.

No staff received salaries at a rate of more than £60,000 per annum.

The charity's key management comprise the members of the PCC and the key staff named on the Charity Information page. No employment benefits were payable to key management by the PCC.

Rev. Nigel Atkinson and Rev. Tom Hollingsbee (clergy members of the PCC) receive stipends from the Diocese and so are not employees of the PCC; some of the Parish Share paid to the Diocese is used to help meet the cost of these stipends. These clergy are provided with accommodation (which is customary for clergy) and the cost of this accommodation to the PCC is disclosed in note 7 'Charitable expenditure'. The charity also reimbursed expenses to these clergy; again these costs are disclosed in note 7 'Charitable expenditure' under the heading 'Clergy expenses'.

Staff costs in 2020 included redundancy and termination payments totalling £11,737 and comprise only statutory redundancy payments. Redundancy and termination payments are charged when the liability or obligation arises.

No other member of the PCC received employment benefits in either the current or preceding year.

Page 18

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

10 Tangible fixed assets

Cost
At 1 January 2021
At 31 December 2021
Accumulated depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 1 January 2021		 Freehold
Long leasehold
Property
Property
£
£
396,500
96,000
396,500
96,000
116,000
-
4,000
-
120,000
-
276,500
96,000
280,500
96,000		 Fixtures,
fittings and
equipment
£
-
-
-
-
-
-
-		 Total
2021
£
492,500
492,500
116,000
4,000
120,000
372,500
376,500

Freehold properties are stated at histroric cost and comprise a residential property at 6 Lilac Avenue (used by the Youth Worker) and the Church Centre attached to the Church.

The leasehold property at 92 Grove Park is held on a 999 year lease expiring in 2948 and is rented from the church by the former Associate Minister. The lease of 92 Grove Park is included at 74.4% of historic cost as this property is subject to an arrangement with the Church Commissioners (known as a Value Linked Loan) whereby if the property is sold 25.6% of the proceeds will be payable to the Church Commissioners. While this arrangement represents an equity share of 25.6% of the ownership, interest is also payable on the original Church Commissioners investment. This interest is shown in note 7a above.

11 Debtors

Falling due within one year:
Tax recoverable
Other debtors
Total debtors
12
Cash at bank and in hand
Cash at bank with immediate access
13
Creditors: liabilities falling due within one year
Trade and other creditors
Pension contributions
Accruals
Grant obligations		 2021
£
15,098
4,932
20,030
2021
£
94,102
94,102
2021
£
2,276
-
3,120
13,500
18,896		 2020
£
8,825
4,834
13,659
2020
£
125,115
125,115
2020
£
5,995
214
3,120
13,500
22,829

14 Pension commitments

During the year employer’s pension contributions totalling £1,145 (2020: £5,939) were payable to defined contribution personal pension schemes. Pension contributions of £nil were owing at the balance sheet date (2020: £214).

Page 19

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

15 Funds

During the year the movements in the charity's funds were as follows:

Designated Funds
Mission giving
Evangelism
Café
Bell restoration
ACF
Young at heart
OASIS
Youth work
Fixed assets
Building reserve
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Church and Centre refurbishment
Music fund
Reordering fund
Bell restoration
ACF
Young at heart
Coffee morning mission fund
Special donations
Aggregate of funds		 Opening
balance
2021
£
8,710
470
-
1,678
459
100
8,229
4,166
376,500
-
400,313
90,922
491,235
-
905
251
-
-
-
54
-
1,210
492,444		 Incoming
resources
2021
£
-
-
30,804
-
-
-
438
-
-
-
31,242
230,270
261,512
18,750
2,500
-
982
-
-
-
10
22,242
283,754		 Outgoing
resources
2021
£
(40,500)
(470)
(33,577)
-
-
-
(652)
-
(4,000)
-
(79,199)
(221,256)
(300,455)
(3,094)
(2,519)
(102)
(1,960)
(323)
-
-
(10)
(8,008)
(308,463)		 Transfers
in the year
2021
£
35,790
-
2,773
(1,678)
(459)
(100)
-
(4,166)
-
5,000
37,159
(39,396)
(2,237)
-
-
-
1,678
459
100
-
-
2,237
-		 Gains and
losses
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Closing
balance
2021
£
4,000
-
-
-
-
-
8,015
-
372,500
5,000
389,515
60,540
450,055
15,656
886
149
700
136
100
54
-
17,681
467,736

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

assets and liabilities of the various funds were as follows:
Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
-
372,500
20,030
-
59,406
17,015
(18,896)
-
60,540
389,515
Unrestricted Funds		 Restricted
funds
£
-
-
17,681
-
17,681		 2021
£
372,500
20,030
94,102
(18,896)
General
funds
£
-
20,030
59,406
(18,896)
60,540
467,736

Page 20

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

In the previous year the movements in the charity's funds were as follows:

Designated Funds
Mission giving
Evangelism
Café
Bell restoration
ACF
Young at heart
OASIS
Youth work
Fixed assets
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Music fund
Reordering fund
Coffee morning mission fund
Aggregate of funds		 Opening
balance
2020
£
20,556
665
-
1,661
307
101
7,995
265
380,500
412,050
76,154
488,204
1,250
17,221
-
18,471
506,675		 Incoming
resources
2020
£
-
-
30,155
17
645
299
1,353
5,732
-
38,201
246,998
285,199
-
-
1,675
1,675
286,874		 Outgoing
resources
2020
£
(33,910)
(195)
(31,277)
-
(493)
(300)
(1,119)
(1,831)
(4,000)
(73,125)
(209,043)
(282,168)
(345)
(16,970)
(1,621)
(18,936)
(301,104)		 Transfers
in the year
2020
£
22,064
-
1,123
-
-
-
-
-
-
23,187
(23,187)
-
-
-
-
-
-		 Gains and
losses
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Closing
balance
2020
£
8,710
470
-
1,678
459
100
8,229
4,166
376,500
400,313
90,922
491,235
905
251
54
1,210
492,445

Analysis of net assets by fund

In the previous year, the assets and liabilities of the various funds were as follows:

Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
-
376,500
13,659
-
86,592
37,313
(9,329)
(13,500)
90,922
400,313
Unrestricted Funds		 Restricted
funds
£
-
-
1,210
-
1,210		 2020
£
376,500
13,659
125,115
(22,829)
General
funds
£
-
13,659
86,592
(9,329)
90,922
492,445

Annually the members of the PCC set aside some of the charity's income for grant giving to institutions and individuals who undertake activities that further the charity's own objects. It is anticipated that all of the mission funds designated for this purpose will be distributed in the new financial year.

16 Operating lease commitments

The charity has an operating lease for its photocopier. The minimum amount payable (until the next break clause and ignoring the potential effect of future rent reviews) in respect of this lease is as follows:

Within one year
Between one and five years
Payments falling due:		 2021
£
1,114
4,454
5,568		 2020
£
1,148
-
1,148

During the year the charity was charged £1,130 (2020: £1,148) for its operating lease.

Page 21

PCC OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

17 Transactions with related parties

received donations totalling £53,590 (2020: £47,416) from related parties (which includes members of the PCC, any other members of key management and anyone closely connected to them).

During the year the charity also made the following payments to, or for, related parties:

£2,300 (2020: £2,321) in grants to Growing Young Disciples, a charity over which PCC member Debbie Woods has significant influence as a trustee.

Except as disclosed in note 9 'Analysis of staff costs', there have been no other transactions with related parties during the year.

Page 22

PCC OF ST JOHN THE BAPTIST KNUTSFORD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income and endowments
EXPENDITURE ON:
Charitable activities
7
Other trading activities
8
Total Expenditure
Net income/(expenditure)
Transfers between funds
15
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
15		 General
Designated
2021
2021
£
£
193,530
-
12,683
438
24,048
30,804
9
-
230,270
31,242
221,256
45,622
-
33,577
221,256
79,199
9,014
(47,957)
(39,396)
37,159
(30,382)
(10,798)
90,922
400,313
60,540
389,515
Unrestricted funds		 Restricted
2021
£
22,242
-
-
-
22,242
8,008
-
8,008
14,234
2,237
16,471
1,210
17,681		 Total
2021
£
215,772
13,121
54,852
9
283,754
274,886
33,577
308,463
(24,709)
-
(24,709)
492,445
467,736		 General
Designated
2020
2020
£
£
221,458
-
8,541
8,046
16,921
30,155
78
-
246,998
38,201
209,043
41,848
-
31,277
209,043
73,125
37,955
(34,924)
(23,187)
23,187
14,768
(11,737)
76,154
412,050
90,922
400,313
Unrestricted funds		 Restricted
2020
£
-
1,675
-
-
1,675
18,936
-
18,936
(17,261)
-
(17,261)
18,471
1,210		 Total
2020
£
221,458
18,262
47,076
78
286,874
269,827
31,277
301,104
(14,230)
-
(14,230)
506,675
492,445

Page 23