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2022-12-31-accounts

ST JOHN THE BAPTIST CHURCH KNUTSFORD 2022 ANNUAL REPORT

ANNUAL REPORT 2022

St John the Baptist Church, Knutsford

REPORT AND ACCOUNTS - TABLE OF CONTENTS

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 7
SMALL GROUPS 8
MISSION REPORT 8
CHURCH HILL CAFE 9
MARRIAGE PREPARATION 9
PLANS FOR THE YEAR AHEAD 9
FINANCE(some 2022 numbers tbc) 9
INVESTMENT POLICY 9
RESERVES 10
FIXED ASSETS 10
RISK ASSESSMENT 10
CONCLUSION 10
FINANCIAL STATEMENTS 11

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St John the Baptist Church, Knutsford

ANNUAL REPORT 2022

CHARITY INFORMATION

INCUMBENT

Revd Nigel Atkinson

INDEPENDENT EXAMINER

Lourens du Plessis 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 2022

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: Andy Worth Elaine Tamkin Assistant Curate: Revd Mel Lacy

Representative on General Synod: Debbie Woods

Representatives on the Deanery Synod:

Neil Wall Sue Broadbent John Lee Debbie Woods Stewart Dally

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St John the Baptist Church, Knutsford ANNUAL REPORT 2022

Elected Members: Steve Kitcher ( ex-officio) Ken McPhail (2020-2023) Stewart Dally ((2020-2023) Geoff Locke (2021-2024) John Lee (2022-2025) Christopher Ainsworth (2023-2026) Emily Pegg (2023-2026) Anne Evans (2023-2026)

Ian Robertson (2022-2025) Rowena Nixon (2020-2023) Hannah Waller (2020-2023) Dave Broadbent(2021-2024) Sue Broadbent (co-opted) Paul Jones (2023-2026)

In attendance: Chris Hogg (PCC Secretary (to April 2023))

Hannah Waller (PCC Secretary (from May 2023))

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

a) To deal with emergency matters on behalf of the PCC.

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ANNUAL REPORT 2022

St John the Baptist Church, Knutsford

Members: Revd Nigel Atkinson (Vicar), Steve Kitcher (Treasurer), Tom Hollingsbee (Associate Vicar), Debbie Woods, Dave Broadbent, Andy Worth (Churchwarden) and Elaine Tamkin (Churchwarden).

FINANCE COMMITTEE

Terms of reference

Members: Revd Nigel Atkinson (Vicar), Debbie Woods, Andy Worth (Churchwarden) Elaine Tamkin (Churchwarden), Steve Kitcher (Treasurer), Dave Broadbent, Tom Hollingsbee (Associate Vicar).

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 and Debbie Woods.

BUILDINGS AND MAINTENANCE

The last post covid 12 months of building works to the main church and centre have largely focussed on routine maintenance to facilitate services and the café along with external user groups all of which has been budgeted for and met financially by church family through regular giving. Church housing, however, has seen some more significant changes in the way we make provision for both our associate minister and youth leader.

Previous low-level plaster repairs carried on the nave side wall were redecorated but we still have an issue with effervescence of the wall plaster due to salts. Further work is envisaged to improve the external drainage along the side path which should help. Pointing of masonry joints and securing lead flashing has also been carried out to the roof parapet wall to help reduce moisture content.

A previously blocked rainwater gulley resulted in the left side wall of the chancel being affected by the damp. Having dried out has now been decorated. Routine cleaning of the main roof gullies, drains and drain downspouts continues to be carried out.

More recent work to the drainage has involved work to clear pipes within the church boundary wall and United Utilities have covered pipes under the neighbouring property.

Comprehensive testing of the church/centre electrical systems has been carried out and subsequent results assessed and being addressed as an ongoing programme of work. Proposals to upgrade the existing church Wi-Fi and incorporate digital giving have now been sanctioned by PCC.

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St John the Baptist Church, Knutsford

ANNUAL REPORT 2022

Church Centre

Moving forward from covid and with a more comprehensive use of the church building further consideration is being given on how we make best use of the centre. This time of reflection is also helpful as financially as we are also currently focused on church housing needs.

Grove Park

Required significant work as outlined in the quinquennial report to bring the property up to standard for our Associate Church Minister and family. Following a successful fund raising appeal with church family we have been able to carry out a comprehensive repair and upgrade of the existing house at a cost of £56K and installation of a garden office pod at £22K (both inc vat). Following the appointment of an architect and other professionals planning consent was obtained to add a single story side extension and is priced at £50K ex vat. This final phase of work is due for completion in summer 2023. It should be noted the funds for this work have been through God’s provision and have been provided entirely by church family for which we are very grateful. The investment in this house will also enable us to approach the Church Commissioners for a possible reduction in their financial interest in the property.

Lilac Ave

When the Youth Ministers house was vacated it was initially thought the property should be short term let prior to further reuse by another YM. On closer inspection it was noted that the property was in poor condition and required significant financial investment to bring the property up to standard. Due consideration was given by S&F and PCC, and it was decided to take advantage of current market prices and to sell the property and invest the funds raised with a view to returns being sufficient to provide funding for rental property tailored to the specific needs of a new Youth Minister. The sale proceeded relatively quickly and in May 2023 this was completed.

Quinquennial Inspection

In addition to the substantial work completed on the Grove Park property, various works have been undertaken in the main church building, some of which were referenced in the 2021 Inspection.

Internal re-plastering recently carried out to the lower level north wall have not yet resolved the dampness issue. Further work is now scheduled to improve the drainage outside alongside the wall, following which, the internal re-plastering will be made good by the contractor at no extra cost. Various roofing repairs and maintenance tasks have also been completed.

I would like to thank all members of church family for the many and varied ways in which they give to church throughout the year, be it financial or time in serving in so many ways to help us go forward as a church. It is a testament to peoples giving that we have a strong church in Knutsford today.

Thank You All

Dave Broadbent

ELECTORAL ROLL

There are 177 names on the Electoral Roll, a net decrease of five. Twelve new names have been added and seventeen removed.

REVIEW OF ACTIVITIES

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

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St John the Baptist Church, Knutsford ANNUAL REPORT 2022

TEACHING OBJECTIVES

As you know we at St Johns are committed to regular expositions of the Bible. We should be happy that this is the case. When clergy are ordained, they are asked: Are you determined out of Scripture to instruct the people committed to your charge and to teach nothing as required of necessity to salvation but that which you shell be persuaded may be concluded and proved by Scripture? And then they are asked: Will you give your faithful diligence…so that you may teach the people committed to your Cure and Charge…to keep and observe the same? It is noteworthy that the largest parishes in the diocese are those who prioritise preaching and teaching. Which is odd from a secular point of view. But we should not be surprised because the Bible is the only book that gives us hope in the face of death. And people yearn and long for this hope. To that end in the morning services (8:30 and 10:15) we have had sermon in the Book of Kings, the Gospel of Matthew, Pauls Epistle to the Corinthians and Galatians as well as various stand-alone sermons on appropriate occasions. In the evening we have looked at the Epistle of James, the some of the Psalms and Esther. Once a month our Prayer Meeting is held on the first Sunday evening.

Nigel Atkinson

YOUTH AND CHILDREN’S MINISTRY

The Toddler group, Oasis, has run on Thursday mornings throughout this year and we are very grateful to the extensive team of leaders who have made this possible. It is wonderful to be able to welcome families into church for play, craft, snack, Bible story and singing. Special events were held at Easter and Christmas and these were very well received.

Junior Church has also been led very competently by a team of very dedicated leaders.

‘Scramblers’ (ages 3-5) have used the ‘Big Picture Story Bible’; ‘Explorers’ (years 2-5) have used ‘Click’ material and Pathfinders (years 6-10) have undertaken a very extensive Bible overview. These sessions have taken place on most ‘ordinary’ Sunday mornings when there hasn’t been an ‘all age’ service.

The format of mid-week groups changed quite significantly after Hannah Dobson resigned over the summer. Our grateful thanks go to her for her hard work and dedication to the young people.

Since September, young people from years 6-13 have met on Thursday evenings during term time in the Church Hall for an hour and 15 minutes Bible study. In the autumn term, the group studied the book of Esther and enjoyed special ‘themed’ games nights and a Christmas social with Chinese take away. Huge thanks also go to the hard working team of leaders who came together to lead this ministry.

SAFEGUARDING

The members of the PCC confirm that they have complied with their duties under section 5 of the Safeguarding and Clergy Discipline Measure 2016.

During the past year we can again be grateful that there have been no incidents that required reporting to the Safeguarding Office at Chester Diocese. We continue seek their advice, guidance and training for the protection of us all.

Indeed, the whole PCC are currently undergoing the Basic Awareness and Foundation training modules as requested by the Bishop of Birkenhead.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2022

I must also recommend and encourage anyone who has any responsible role within St John’s Knutsford or Toft that they undertake this free training provided by the Church of England. This can be accessed at: http://safeguardingtraining.cofeportal.org/

Andrew Worth (Safeguarding Officer)

SMALL GROUPS

It has been a steady and encouraging year for small groups. We began the year running five groups, four mixed groups that met in the evening in each other’s homes and one women’s group that met in the daytime at church. These groups each matched their bible studies to the morning sermon series. Stories of encouragement and support as well as growth and challenge are coming from each of them, which is wonderful to hear. It is encouraging to note that during the year a 5th group started up in the evening and the Women’s community group has also seen an expansion of numbers, now regularly hosting more than twenty people.

All in all, given the low base we started from after the pandemic, things with small groups are moving in the right direction. As we hope to encourage more of the church family into small groups as and when appropriate, it is our prayer that we will continue to see consistent and steady growth over the new years and that a steady stream of people will continue to be discipled through this setup.

Finally, a big thanks to all who lead the small groups; whose often unnoticed work in serving the groups is indispensable and very much valued.

Tom Hollingsbee

MISSION REPORT

As a mission team, we have finally got together again post covid.

It was a real joy to see Jirka and Kiera with their family in 2022. It was such an encouragement to hear how their ministry amongst the students is really growing.

It was also great to see Wanyeki and Mary at the beginning of the year when they came to chat to the church family about their retirement. We have been prayerfully considering what to do now that Wanyeki and Mary have retired from their ministry at St Julian’s in Kenya. We have been in touch with Crosslinks and are glad to hear George, Zablon and Peter who are carrying on the teaching minsters and leaders ministry are now Crosslinks partner, who we will be supporting.

We as a Church family continue to support St Peters Rock Ferry, Growing Young Disciples and have made some mission funds available for the ministry of Hope Central and the English Classes for refugees. It is also exciting to hear about Joseph and Hannah Adams long term mission to Tanzania with CMS and working with Neema Crafts. Joseph and Hannah will be joining us on a Sunday in March to tell us more about their work. A donation has been made towards their venture.

FUNERALS

There were eight funerals in 2022. Four were members of the Church Family.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2022

CHURCH HILL CAFÉ

The cafe has gone from strength to strength over the last year with ever increasing numbers of customers, both local and those traveling into Knutsford, church members and non-church members. We have maintained an average of over 250 people each week and have continued to host some of the Rock Choir, Methodist Church regulars, a language class and a book club. Groups from within St John’s using the cafe include the women’s Bible study, Oasis mums, and the Cornerstone group.

Due to increases in costs from our suppliers, from September 2022, we increased our prices across the menu. Also in September, Bianca Reeve and Jo Dally went down to three days a week and a third member of staff, Tanya Yavorska, began work four days a week. Having moved with the family to Handforth, in January, Bianca handed her notice in with a view to stepping as cafe manager before Easter 2023. Work then began to line-up someone new in that post, and we welcomed Owen Hui to the team in April.

The cafe is well supported by faithful volunteers some of whom have been working since we opened in 2015. Some stood down last year and three new volunteers joined us meaning we now have nine, most of whom work three to fours hours a day. Especially in busy times the volunteers make a highly valuable contribution in welcoming customers, taking orders, serving at tables, washing up, clearing and cleaning of the cafe during both working hours and after we have closed.

MARRIAGE PREPARATION

Over the course of year there were three weddings. All the couples did Marriage Preparation with Tom or Nigel.

FINANCE

In 2022 expenditure exceeded income. At year-end unrestricted general cash reserves amounted to £45,902 (2021: £59,405). Designated cash reserves were £55,552 (2021: £17,014) and restricted cash reserves were £1,671 (2021: £17,682). 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. These transfers totalled £14,975 (2021: £18,810). Mission giving is detailed in note 7c to the financial statements.

The refurbishment project for Grove Park has been a significant piece of work and has been funded through donations amounting to £111,411 (including gift aid) from the church family. Total spending on the project in 2022 was £81,217 and will continue into 2023.

The Parish Share paid in 2022 was £112,999 (2021: £ 110,509).

INVESTMENT POLICY

The Church’s funds were held as cash at Barclays Bank plc. The Church does not currently invest in equity funds. Given that the sale of 6 Lilac Avenue was completed in May 2023, the PCC will be considering alternative arrangements to invest the proceeds of sale. An Investment Sub-Group has been set up for this purpose.

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St John the Baptist Church, Knutsford ANNUAL REPORT 2022

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 £45,902. However, the church also had designated unrestricted cash reserves of £55,552, so that the total unrestricted reserves exceeded the minimum requirement. Subsequent to year-end the Lilac Avenue property was sold, releasing significant unrestricted cash reserves. 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. It should be noted that the Lilac Avenue property was sold in May 2023 for £380,000, providing net sale proceeds of £373,293.

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 expenditure.

With a historical church building, unexpected repair costs will arise from time to time. The 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.

CONCLUSION

St Johns has had another busy year. We are thankful for the continued efforts from everyone involved in organising and running various church services and associated activities throughout the year.

We maintained another resilient financial performance. We continued to pay close attention to discretionary spending wherever possible to ensure a balance was maintained. Income was around 30% higher than last year, while expenditure was around 21% higher.

The outcome for the year was very satisfactory, given all that we achieved, and we are looking forward to higher levels of activity in 2023.

Nigel Atkinson

Revd Nigel Atkinson 22 October 2023

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INDEPENDENT EXAMINER'S REPORT

TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

('the Charity')

I report to the members of the PCC (who are also the charity's trustees) on my examination of the accounts of the Charity for the year ended 31 December 2022 on pages 12 to 25 following, which have been prepared on the basis of the accounting policies set out on pages 14 to 16.

Responsibilities and basis of report

As members of the PCC 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 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) Member of the Institute of Chartered Accountants in England and Wales Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: 23 October 2023

Page 11

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

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
Raising funds
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
£
276,961
22,411
66,625
101
366,098
282,037
44,080
326,116
39,982
13,740
53,722
450,052
503,774		 Restricted
Funds
£
3,375
-
-
-
3,375
5,646
-
5,646
(2,271)
(13,740)
(16,011)
17,682
1,671		 Total
Funds
2022
£
280,336
22,411
66,625
101
369,473
287,683
44,080
331,762
37,711
-
37,711
467,734
505,445		 Total
Funds
2021
£
215,772
13,121
54,852
9
283,754
274,887
33,577
308,464
(24,710)
-
(24,710)
492,444
467,734

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 14-24 form part of these accounts.

Page 12

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

BALANCE SHEET

AS AT 31 DECEMBER 2022

Note
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
12
CREDITORS: Amounts falling
due within one year
13
Net current assets / (liabilities)
TOTAL NET ASSETS
FUND BALANCES
15
Unrestricted Funds
General funds
Designated funds
Restricted Funds		 Unrestricted
Funds
£
426,005
426,005
25,241
101,454
126,695
(48,926)
77,769
503,774
42,374
461,400
503,774
-
503,774		 Restricted
Funds
£
-
-
-
1,671
1,671
-
1,671
1,671
-
-
-
1,671
1,671		 Total
Funds
2022
£
426,005
426,005
25,241
103,125
128,366
(48,926)
79,440
505,445
42,374
461,400
503,774
1,671
505,445		 Total
Funds
2021
£
372,500
372,500
20,030
94,102
114,132
(18,898)
95,234
467,734
60,538
389,514
450,053
17,682
467,734

The financial statements were approved by the members of the PCC and were signed on its behalf by:

Nigel Atkinson

--------------------------------------REV. NIGEL ATKINSON

Date: 22 October 2023

Charity number: 1131500

The notes on page 14-24 form part of these accounts.

Page 13

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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 14

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2 Accounting Policies (continued)

c) Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

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

Consecrated and beneficed property is not included in these financial statements by virtue of s.10(2) of the Charities Act 2011. All expenditure on consecrated or beneficed buildings is written off in the year in which it is incurred.

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
Long leasehold property Over the remaining lease term if <75 years remaining or not depreciated (because it is
not consumed by use) if >75 years remaining
Leasehold improvements Upon completion, over the remaining lease term if <75 years remaining or not
depreciated (because it is not consumed by use) if >75 years remaining
Equipment Over 3 to 15 years, depending on expected useful life.

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 use 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.

Page 15

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2 Accounting Policies (continued)

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.

i) Financial instruments

The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

j) Exemption from preparing a cashflow statement

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

k) Critical accounting estimates and areas of judgement

The members of the PCC do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

3 Donations and legacies

Donations of cash and similar
Government grants
Other grants receivable
Income tax recoverable
Income from charitable activities
Church retreats and events
Fees
St John's Toft
Church organisations
Miscellaneous income
Income from other trading activities
Church Hill Café
COVID related grants for Café
Church and centre hire
Rental of residential properties
Investment income
Bank interest		 2022
£
229,843
-
828
49,665
280,336
2022
£
2,931
8,749
7,734
2,265
732
22,411
2022
£
45,116
-
13,720
7,789
66,625
2022
£
101
101		 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

4 Income from charitable activities

5 Income from other trading activities

6 Investment income

Page 16

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 electricity for church and centre
Centre maintenance and costs
Depreciation 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 payable (note 8c)
b
Costs incurred on support & administration
Governance costs
Independent examiner's fee
Office expenses
Publications and publicity
Total expenditure		 2022
£
112,999
29,030
3,167
4,414
1,413
984
230
1,022
120
315
1,187
2,988
863
158,732
15,607
9,200
2,358
4,000
6,179
21,591
26,234
2,353
1,614
-
89,135
29,431
277,299
3,600
3,600
5,729
1,055
10,384
287,683		 2021
£
110,509
26,739
2,449
2,240
529
975
2,259
859
97
170
1,126
1,386
2,510
151,849
21,924
12,636
288
4,000
6,240
25,150
990
2,189
984
102
74,503
40,775
267,127
3,120
3,120
4,002
638
7,760
274,887

The fee payable to the independent examiner for preparing and examining the accounts was £3,600 (2021: £3,120); in addition the charity paid £810 (2021: £1,111) to Stewardship for payroll bureau and services.

Page 17

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

7 Charitable expenditure (continued)

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 grants to institutions comprised:
Crosslinks
Growing Young Disciples
St Peter's Church Rock Ferry
Hope Central
UCCF
North West Partnership
SPUC
Grants to institutions for less than £1,000 each
Other trading expenditure
Church Hill Café expenditure
Church Hill Café salaries		 Institutions
£
17,431
12,000
29,431
Institutions
£
19,275
18,000
37,275		 Individuals
£
-
-
-
Individuals
£
1,500
2,000
3,500
2022
£
13,500
1,500
3,000
5,868
2,000
1,500
1,332
731
29,431
2022
£
15,041
29,038
44,080		 2022
£
17,431
12,000
29,431
2021
£
20,775
20,000
40,775
2021
£
19,500
5,000
5,500
5,675
1,000
500
-
100
37,275
2021
£
8,432
25,144
33,577

8 Other trading expenditure

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

The average monthly number of employees during the year was 5 (2021: 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. Total employment benefits payable to key management for the year were as follows:

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'.

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

Page 18

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

10 Tangible fixed assets

Tangible fixed assets
Cost
At 1 January 2022
Additions
At 31 December 2022
Accumulated depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Freehold
Property
£
396,500
-
396,500
120,000
4,000
124,000
272,500
276,500		 Long
Long
Leasehold
Leasehold
Property Improvements
£
£
96,000
-

-
35,330
96,000
35,330
-
-
-
-
-
-
96,000
35,330
96,000
-		 Fixtures,
fittings and
equipment
£
-
22,175
22,175
-
-

-
22,175
-		 Total
2022
£
492,500
57,505
550,005
120,000
4,000
124,000
426,005
372,500

Freehold properties are stated at histroric cost and comprise a residential property at 6 Lilac Avenue (subsequently sold in May 2023) 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 was rented from the church by the former Associate Minister until July 2022. It is now occupied by the Associate Vicar under normal clergy arrangements. 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. Due to the ongoing development work at the property, negotiations are ongoing to amend the Church Commissioners' interest in the property.

11 Debtors

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
Petty cash		 2022
£
22,241
3,000
25,241
2022
£
103,045
80
103,125		 2021
£
15,098
4,932
20,030
2021
£
94,102
-
94,102

Page 19

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

13 Creditors: liabilities falling due within one year

itors: liabilities falling due within one year
Trade and other creditors
Accruals
Grant obligations		 2022
£
23,826
3,600
21,500
48,926		 2021
£
2,278
3,120
13,500
18,898

14 Pension commitments

During the year employer’s pension contributions totalling £1,278 (2021: £1,145) were payable to defined contribution personal pension schemes. Pension contributions of £nil (2021: nil) were owing at the balance sheet date.

15 Funds

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

Designated Funds
Mission giving
Café
OASIS
Fixed assets
Building reserve
Property refurbishment
General Unrestricted Funds
Total Unrestricted Funds		 Opening
balance
2022
£
4,000
-
8,014
372,500
5,000
-
389,514
60,538
450,052		 Incoming
resources
2022
£
-
45,225
1,330
-
-
93,937
140,492
225,606
366,099		 Outgoing
resources
2022
£
(25,772)
(45,490)
(441)
(4,000)
-
(23,667)
(99,370)
(226,747)
(326,116)		 Transfers
in the year
2022
£
21,772
265
(6,050)
-
14,776
30,762
(17,022)
13,740		 Gains and
losses
2022
£
-
-

-
-
-
-
-
-
-		 Closing
balance
2022
£
-
-
2,854
368,500
5,000
85,046
461,400
42,375
503,774

Page 20

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

15 Funds (continued)

Restricted Funds

Restricted Funds
Church and Centre refurbishment
Music fund
Reordering fund
Bell restoration
ACF
Young at heart
Cornerstone
Special donations
Flower fund
Aggregate of funds		 15,656
886
149
700
136
100
54
-
-
17,682
467,734		 -
400
-
699
-
-
1,691
391
195
3,375
369,474		 (880)
(863)
-
(543)
-
-
(2,739)
(391)
(231)
(5,646)
(331,762)		 (14,776)
-
-
-
-
-
1,000
-
36
(13,740)
-		 -
-
-
-
-
-
-
-
-
-
-		 -
423
149
856
136
100
6
-
-
1,671
505,445

The transfers referred to above were made for the following reasons:

b) £1,000 transfer to correct input error (originally to General Fund)

Analysis of net assets by fund

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
Creditors falling due after one year		 General
Designated
funds
funds
£
£
-
426,005
25,241
-
45,902
55,552
(28,769)
(20,158)
-
-
42,374
461,400
Unrestricted Funds		 Restricted
funds
£
-
-
1,671
-
-
1,671		 2022
£
426,005
25,241
103,125
(48,926)
-
General
funds
£
-
25,241
45,902
(28,769)
-
42,374
505,445

Page 21

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

15 Funds (continued)

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
Building reserve
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Church and Centre refurbishment
Music fund
Reordering fund
Bell restoration
ACF
Young at heart
Cornerstone
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
-
-
-
31,241
230,270
261,511
18,750
2,500
-
982
-
-
-
10
22,242
283,754		 Outgoing
resources
2021
£
(40,500)
(470)
(33,577)
-
-
-
(652)
-
(4,000)
-

(79,199)
(221,258)
(300,457)
(3,094)
(2,519)
(102)
(1,960)
(323)
-

-
(10)
(8,008)
(308,464)		 Transfers
in the year
2021
£
35,790
-

2,773
(1,678)
(459)
(100)
-
(4,166)
-
5,000
37,159
(39,397)
(2,237)
-

-

-
1,678
459
100
-
-
2,237
-
 Gains and
losses
2021
£
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Closing
balance
2021
£
4,000
-
-
-
-
-
8,014
-
372,500
5,000
389,514
60,538
450,052
15,656
886
149
700
136
100
54
-
17,682
467,734

Page 22

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

15 Funds (continued)

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
£
£
-
372,500
20,030
-
59,405
17,014
(18,898)
-
60,538
389,514
Unrestricted Funds		 Restricted
funds
£
-
-
17,682
-
17,682		 2021
£
372,500
20,030
94,102
(18,898)
General
funds
£
-
20,030
59,405
(18,898)
60,538
467,734

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 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:


potential effect of future rent reviews) in respect of this lease is as follows:
Within one year
Between one and five years
After five years
Payments falling due:		 2022
£
1,114
3,342
-
4,456		 2021
£
1,114
4,454
-
5,568

During the year the charity was charged £1,060 (2021: £1,130) for its operating lease.

17 Capital commitments

Contracted for but not provided for by the balance sheet date

2022 2021
£ £
71,872 -

(because the related assets had not been delivered by the year-end)

Page 23

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

18 Transactions with related parties During the year the charity:

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

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

19 Events since the year end

The PCC completed the sale of the residential property at Lilac Avenue in May 2023. This has generated net sale proceeds of £373k and an estimated gain on the net balance sheet value of £277k.

Page 24

THE PAROCHIAL CHURCH COUNCIL OF ST JOHN THE BAPTIST KNUTSFORD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 DECEMBER 2022

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 expenditure
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
2022
2022
£
£
183,024
93,937
21,081
1,330
21,400
45,225
101
-
225,606
140,492
226,747
55,290
-
44,080
226,747
99,370
(1,141)
41,123
(17,022)
30,762
(18,163)
71,885
60,538
389,514
42,374
461,399
Unrestricted funds		 Restricted
2022
£
3,375
-
-
-
3,375
5,646
-
5,646
(2,271)
(13,740)
(16,011)
17,682
1,671		 Total
2022
£
280,336
22,411
66,625
101
369,473
287,683
44,080
331,762
37,711
-
37,711
467,734
505,445		 General
Designated
2021
2021
£
£
193,530
-
12,683
438
24,048
30,804
9
-
230,270
31,241
221,258
45,622
-
33,577
221,258
79,199
9,012
(47,957)
(39,397)
37,159
(30,385)
(10,798)
90,922
400,313
60,538
389,514
Unrestricted funds		 Restricted
2021
£
22,242
-
-
-
22,242
8,008
-
8,008
14,235
2,237
16,472
1,210
17,682		 Total
2021
£
215,772
13,121
54,852
9
283,754
274,887
33,577
308,464
(24,710)
-
(24,710)
492,444
467,734

Page 25