ANNUAL REPORT Financial Review and Accounts
for the year 2021
Presented to the Annual Church Meeting on 8 May 2022
THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
Financial Review
The financial activities of the PCC are reviewed below, followed by the statutory financial statements, the Independent examiner’s report and the budget for 2022.
General Account (Undesignated)
The budget for the year identified that we would have a deficit this year of £6,471 on the general fund. The actual year showed a surplus of £4,992 on the undesignated fund. As in 2020 our planned giving continued to fall and this is further reflected in the budget for 2022. The church continues to received generous donations but it cannot be expected that they will continue at the level seen in 2020. The church activities of £144,302 is a reduction of £25,220. This reduction is mainly due to the reduction in our common fund.
Designated and Restricted Funds
Our long-term investments continued to recover in 2021 and increased in value by £5,776 during the year. This is still nearly £3,500 below their peak value but they do provide a very steady income year on year.
During the year the PCC approved the installation of a new audio visual system of the church. The total cost of this system, which has been substantially paid for by donations from an external charity, is around £106K. The system was substantially installed in 2021 and went into operation in early 2022. The total cost of the contracted system has been accounted for in the current year along with the associated donations received up to the end of February as they had been promised to us by the 31[st] December 2021. The project has not been capitalised as the fixed installation is within Holy Trinity Church which is benefice property
Movement in Funds (note 9)
As in previous years the net movement on the general fund has been moved into the designated maintenance fund at the end of the year.
Balance Sheet
The cash at bank has increased by £14,473 mainly due to prompter processing of gift aid claims and also because the donations for the AV system have been more than payments during the year. This is also reflected in negative movement of working capital of £1,447.
Reserves policy
There has been no change to the reserves policy as set out in note 1 to the accounts.
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
The Budget for 2022
The budget has proved very difficult to prepare for 2022 due to the uncertainty of the return to normality with respect to church attendance and also the impact of much higher utility costs during the current year.
The PCC is aware that due to a reduction in those giving, due to death and leaving the church, our income for 2022 would be substantially lower than in 2021. This is being addressed by a stewardship program
We have saved funds in previous years by cutting our common fund. We have committed in 2022 to maintain the payment to the common fund at the 2021 level which is 100% of the diocese estimate for supporting a church.
We have commenced plans to hold fund raising events during 2022.
It is expected that we will be in deficit for 2022 but the church has a strong balance sheet to support us in the short term.
Graham Hamwijk Acting Treasurer 22 February 2022.
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021
| Notes Unrestricted Funds Designated Funds Restricted Funds INCOME AND ENDOWMENTS £ £ £ Voluntary Income 2a 124,451 100,479 4,049 Activities for generating funds 2b 4,162 0 0 Income from investments 2c 9,604 2,327 Income from church activities 2d 14,081 TOTAL INCOME 152,298 102,806 4,049 EXPENDITURE Charitable giving 3a 340 2,527 3,749 Church activities 3b 144,302 107,018 0 Investment outgoings 3c 2,664 0 TOTAL EXPENDITURE 147,306 109,545 3,749 NET MOVEMENT IN RESOURCES 4,992 (6,739) 300 NET GAINS ON INVESTMENTS 5,776 TRANSFERS BETWEEN FUNDS (4,992) 4,992 0 NET MOVEMENT IN FUNDS 0 4,029 300 Total funds brought forward 0 193,314 247,678 Total funds carried forward 0 197,343 247,978 £ £ FIXED ASSETS Tangible 5a 355,438 Investments 5b 48,946 Office equipment 5c 0 404,384 CURRENT ASSETS Debtors 6 60,047 Cash at bank 52,255 112,302 516,686 LIABILITIES Amounts falling due within 1 year 7 71,365 TOTAL NET ASSETS 8 445,321 REPRESENTED BY Funds: General 9 0 Designated 9 197,343 Restricted 9 247,978 445,321 BALANCE SHEET AS AT 31ST DECEMBER 2021 2021 |
Unrestricted Funds Designated Funds Restricted Funds £ £ £ 124,451 100,479 4,049 4,162 0 0 9,604 2,327 14,081 |
2021 2020 £ £ 228,979 176,316 4,162 5,480 11,931 14,343 14,081 8,780 259,153 204,919 6,616 3,198 251,320 205,400 2,664 3,251 260,600 211,849 (1,447) (6,930) 5,776 (9,062) 0 0 4,329 (15,992) 440,992 456,984 445,321 440,992 £ £ 355,438 43,170 0 398,608 17,927 37,782 55,709 454,317 13,325 440,992 0 193,314 247,678 440,992 2020 |
2020 £ 176,316 5,480 14,343 8,780 |
|---|---|---|---|
| 152,298 102,806 4,049 |
204,919 | ||
| 340 2,527 3,749 144,302 107,018 0 2,664 0 |
3,198 205,400 3,251 |
||
| 147,306 109,545 3,749 |
211,849 | ||
| 4,992 (6,739) 300 5,776 (4,992) 4,992 0 |
(6,930) (9,062) 0 |
||
| 0 4,029 300 0 193,314 247,678 |
(15,992) 456,984 |
||
| 0 197,343 247,978 |
440,992 |
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1. Accounting policies
The PCC is a public benefit entity within the meaning of FRS102. The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs, and with the Regulations “true and fair view” provisions.
The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their affiliations to another body, nor those which are informal gatherings of church members.
Going Concern
The accounts have been prepared on a going concern basis which assumes that the charity will continue to operate for the foreseeable future. This is based on the Trustees opinion that the activity will continue due to support of their charitable activities.
If the charity were unable to continue to operate adjustments would be made to provide for any further liabilities which may arise.
Assets
The financial statements have been prepared under the historical cost convention except for:
a. The Church, built in 1854, and other consecrated and beneficed property assets, previously excluded from financial statements in accordance with generally accepted practice and now included as required by Charity Accounting regulations. Due to their location and purposes and having no known cost, the value ascribed is nominal.
b. Other property assets at cost.
c. Moveable church furnishings at cost where known.
d. Plant and equipment, over £1,000 with a life of 2 years and over, at cost The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law.
Depreciation
No depreciation is provided on consecrated and beneficed property as its cost is unknown and by reason of its being unsaleable by its nature and age, being 50 or more years old.
No depreciation is provided on other property assets as their currently estimated residual value is not less than the carrying value and the remaining useful life exceeds 50 years.
Depreciation on plant, equipment and furnishings is calculated to write off their cost less their anticipated residual value over their estimated useful life.
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
Investments
Investments quoted on a recognised stock exchange or whose value derives from them are valued at market value at the year end.
Funds
Unrestricted Funds
These represent the remaining income funds of the PCC that are available for spending on the general purposes of the PCC.
Designated Funds
These represent unrestricted amounts designated by the PCC for specific purposes which may well extend over one or more accounting periods.
Restricted Funds
These represent amounts received which must be used for the purpose specified by the donor.
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR TO 31[st] DECEMBER 2021
| 2. INCOME AND ENDOWMENTS Note Donations and Legacies 2a Planned giving Open plate collections Gift aid recoverable Donations and appeals Legacies Activities for generating funds 2b Investment income 2c Income from church activities 2d Fees payable to the PCC Hall and Parish Rooms 3. EXPENDITURE Missionary and charitable giving 3a Church activities 3b Ministry: Parish Willesden Curate Staff expenses Church running expenses Hall and Parish Rooms Property upkeep Churchyard Youth work costs Services and resources Holiday club Administration Fund Rasing Costs Other Costs Refurbishments Investment costs Property upkeep . 3c TOTAL EXPENDITURE NET MOVEMENT IN FUNDS Property rent TOTAL INCOME Interest Fund raising events Holiday club Other funds generated |
Unrestricted Designated Restricted TOTAL Funds Funds Funds 2021 £ £ £ £ 90,350 90,350 2,451 2,451 23,048 2,180 0 25,228 8,602 98,299 4,049 110,950 0 124,451 100,479 4,049 228,979 219 0 219 1,350 1,350 2,593 2,593 4,162 0 0 4,162 4 2,327 2,331 9,600 0 9,600 9,604 2,327 0 11,931 2,844 2,844 11,237 11,237 14,081 0 0 14,081 152,298 102,806 4,049 259,153 340 2,527 3,749 6,616 56,800 56,800 28,400 28,400 0 0 858 858 12,927 452 13,379 9,040 9,040 180 180 671 671 5,595 5,595 10,239 10,239 727 727 18,759 18,759 106 0 106 0 144 144 106,422 0 106,422 144,302 107,018 0 251,320 2,664 0 0 2,664 147,306 109,545 3,749 260,600 4,992 (6,739) 300 (1,447) |
TOTAL 2020 £ 95,941 1,783 31,296 37,296 10,000 |
|---|---|---|
| 176,316 | ||
| 1,118 0 4,362 |
||
| 5,480 | ||
| 2,143 12,200 |
||
| 14,343 | ||
| 1,679 7,101 |
||
| 8,780 | ||
| 204,919 | ||
| 3,198 | ||
| 85,200 21,300 0 1,477 22,948 13,501 172 303 6,533 3,274 0 22,977 44 0 27,671 |
||
| 205,400 | ||
| 3,251 | ||
| 211,849 | ||
| (6,930) |
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
4. Staff costs and Trustee Donations
| Salaries and Employer’s National Insurance Employer’s Pension Contributions Total 4. Staff costs and Trustee Donations Within Service, Youth work Costs and Church Administration Costs are: |
2021 £ 19,691 324 20,015 |
2020 £ 21,840 472 |
| 22,312 |
Two of the Readers, Mrs Ann Kentfield and Mrs Margaret Nicholson were granted a total of £500.
No other payments, other than reimbursement of expenses incurred, were paid to any other PCC member, or persons closely connected to them, or related to them, or related parties.
In the year 2021, members of the PCC, being Trustees of the Charity, contributed £25,762 by way of donations to Holy Trinity.
5. Fixed Assets
| 5. Fixed Assets (a) Tangible Freehold property at cost (b) Investments Market value 1st January Unrealised (loss)/gain on revaluation Market value 31st December Consecrated and benefice property assets - Hall, adjacent Parish Rooms with Flat at nominal value |
2021 2 355,436 355,438 43,170 5,776 48,946 |
2020 2 355,436 |
|---|---|---|
| 355,438 | ||
| 52,232 (9,062) |
||
| 43,170 |
The investments are in the CBF Investment Fund and the Equities Investment Fund for Charities (Charifund).
| (c) Equipment at cost Less accumulated depreciation Net book value at 31st December 6. Debtors (Unrestricted Funds) Amounts falling due within one year: Gift aid recoverable Other debtors and prepayments 7. Liabilities Amounts falling due within one year: Accounts payable Other creditors and accruals |
7,588 7,588 0 2021 5,232 54,815 60,047 2021 7,471 63,894 71,365 |
7,588 7,588 |
|---|---|---|
| 0 | ||
| 2020 8,808 9,119 |
||
| 17,927 | ||
| 2020 3,764 9,561 |
||
| 13,325 |
In the above debtors we have included the promised donation to cover costs of the AV system of £50,000.This money was received in February 2022. We have also inclued in liabilities provision for the full contractual cost outstanding for the installation of the AV system at £58,920 of which £54,570 was paid in February 2022.
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
8. Analysis of net assets by fund
| 8. Analysis of net assets by fund | |
|---|---|
| Tangible fixed assets Investment fixed assets Equipment fixed assets Current assets Current liabilities |
£ £ £ £ 109,838 245,600 355,438 48,946 48,946 0 12,463 97,461 2,378 112,302 (12,463) (58,902) (71,365) General Fund Designated Fund Restricted Fund Total Funds |
| 0 197,343 247,978 445,321 |
9. Funds
| 9. Funds | |
|---|---|
| Unrestricted Fund General Designated Funds Maintenance House Working Capital Projects Organ Mission and charity Restricted Funds House Mission and charity Vicar's Discretionary |
Bal fwd Income Expenditure Gains Funds Bal fwd 01 Jan 2021 Transfer 31 Dec 2021 £ £ £ £ £ £ - 152,298 147,306 (4,992) - |
| 26,845 2,327 596 5,776 4,992 39,344 109,838 109,838 18,500 18,500 35,456 97,952 106,422 26,986 2,675 2,675 - 2,527 2,527 - |
|
| 193,314 102,806 109,545 5,776 4,992 197,343 |
|
| 245,600 245,600 3,749 3,749 - 2,078 300 2,378 |
|
| 247,678 4,049 3,749 - - 247,978 |
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
10. Charitable and other donations
The PCC made grants totalling £6,166 (2020 - £3,198) from its funds, from special collections, fund raising events and on behalf of other beneficiaries from special collections and fund raising and passed on directly to them. The beneficiaries were:-
| Embrace the Middle East Diocese of London Lent Appeal Christian Aid Children's Society New Hope Trust Royal British Legion Macmillan Coffee morning Lynda Jackson United Society Close The IT Divide Holy Trinity Toddlers Womans Day of Prayer |
50 947 249 140 20 90 403 791 226 * 3,450 50 200 6,616 |
|---|---|
Beneficiaries marked * were able to claim further gift aid on the monies passed to them.
In addition to the above the PCC paid out of youth work costs £852 to the London Diocesan Willesden Area Education Fund.
The Report, Financial Statements and Activity Reports were approved by the Parochial Church Council on 29[th] March 2022 and signed on their behalf, by Chairperson.
Ann Lynes
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Section A Independent Examiner’s Report
Report to the trustees/ members Holy Trinity Northwood - Charity Number 1131724 On accounts for 31st December 2021 the year ended 4-10 Set out on pages Responsibilities I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year and basis of report ended 31 December 2021. As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”). I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 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.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
Independent the accounts did not comply with the applicable requirements concerning the form and examiner's content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than statement 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.
| Relevant professional qualification(s) or body (if any): Address: Name: Signed: |
Watford, WD18 9TB ICAEW Suite F3, Sunley House, Olds Approach, Tolpits Lane S Ahmed |
|---|---|
| Section B Disclosure |
Only complete if the examiner needs to highlight material matters of concern (see CC32, Independent examination of
Give here brief details of any items that the examiner wishes to disclose .
THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD
4. Budget Financial Statements for the Year 2022
| Incoming Resources Voluntary income Planned giving Open plate collections Gift aid Tax recoverable Donations Legacies Activities for generating funds Fund raising events Holiday club Other funds generated Investment income Interest Property rent Income from church activites Fees payable to the PCC Hall and Parish room Total incoming resources Resources expended Missionary and charitable giving Missionary and charitable income Common Fund Curate Staff expenses Services, resources and music Church running costs Youth ministry costs Holiday Club Fund Raising Costs Churchyard Church Hall & Parish Rooms Administration Housing Rental General Property Costs Investment Property Costs Project Costs Other Total resources expended (Deficit)/Surplus |
- 12 - General Designated Restricted Total Funds 83,000 83,000 3,600 3,600 20,750 2,060 22,810 5,000 8,250 13,250 4,000 4,000 1,800 1,800 2,950 2,950 2,000 2,000 9,825 9,825 2,500 2,500 14,000 14,000 147,425 12,310 0 159,735 5,300 1,400 6,700 (5,300) (1,400) (6,700) 85,200 85,200 1,350 1,350 1,000 1,000 4,000 4,000 18,540 18,540 9,154 9,154 800 800 0 480 480 7,636 7,636 20,230 20,230 0 4,000 4,000 1,750 1,750 0 0 154,140 0 0 154,140 (6,715) 12,310 0 5,595 2022 |
2021 Total Funds 96,807 2,460 29,196 78,425 4,000 1,800 2,450 2,000 9,600 1,747 10,260 |
|---|---|---|
| 238,745 | ||
| 7,000 (6,700) 85,200 1,874 2,550 5,055 22,898 7,276 800 200 480 13,852 24,046 0 500 1,260 102,000 0 |
||
| 268,291 | ||
| (29,546) | ||
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