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2022-12-31-accounts

ANNUAL REPORT Financial Review and Accounts

for the year 2022

Presented to the Annual Church Meeting on 23 April 2023

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

Financial Review

This review explains the financial activities of the Holy Trinity Church, Northwood (“the Church”, technically the PCC) in a simple way to make them as understandable as possible. The full statutory financial statements, Independent Examiner’s report and the budget for 2023 follow the review.

Key: Blue means good news, Red means bad news. Numbers are rounded for simplicity.

HEADLINES

General funds

2022 versus 2021

In 2022 the Church raised around £166,000 and spent £163,000 in its general account. This gives a surplus of £3,000 . We were on track to have a deficit for 2022 before an appeal in December helped to cover the shortfall.

This compares to 2021 where we raised £152,000 and spent £147,000 which gave a surplus of £5,000 .

The increase in money raised compared to 2021 comes mainly from Hall hire (+£7,500 ), cash given in services (+£4,000 ), donations (+£3,000 ) and fundraising (+£3,000 ), off-setting a reduction in planned giving (-£10,000).

The increase in money spent compared to 2021 is mostly due to church running costs (+£6,500), Hall costs (+£4,000) and youth work (+£4,000).

However, underlying these number is a real concern – income from planned giving fell 10% to £81,000 in 2022, down from £90,000 in 2021 and £95,000 in 2020. This is due to reduction in the number of donors. We don’t expect this to fall much further in 2023, but the trend remains down rather than up. However, with costs increasing significantly with inflation, there is the possibility of a significant loss in 2023. Planned giving is the best way of giving for the church as it is reliable and helps planning.

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

Designated and Restricted Funds

The only activity in the ‘designated’ fund were donations for the AV System project of around £11,000 plus gift aid of £2,000. The system was paid for in 2020, so this appears a bit misleadingly as a surplus in this year’s accounts.

The only restricted activity was money collected in church for other charities which was passed on to the charities concerned.

Overall assets of the Church

The assets of the church increased by £12,000 in 2022.

This was due to the £3,000 general surplus and the £12,000 AV System donation, offset by a reduction of £3,000 as the value of our investments fell.

The total assets of £458,000 is made up of a house used as accommodation for church staff ( £355,000 ), £46,000 in investments and £56,000 cash in the bank. This may sound like a lot, but in 2023 we will have to fix some electrics in the church and replace windows in the office, costing around £40,000. The cash and investments would be used up quite quickly if that sort of thing happens again soon.

The Budget for 2023

The budget for 2023 is included at the end of this report. It reflects the expectations of the PCC for 2023 and would result in the money raised by the church matching the money spent in 2023. Overall income is budgeted to stay broadly the same - £167,000 in 2023 compared with £165,000 in 2022. Each individual income item is expected to be similar in 2023 to 2022, with a reduction in expected donations off-set by an increase in expected fundraising . The PCC does recognise that achieving the budgeted income will be challenging and we will need all of the Church to work together.

Overall costs are budgeted to increase from £161,000 to £167,000. Increased energy costs are offset to some degree by reductions in church running costs and youth work . As with the income budget, the PCC recognises that achieving the budgeted expenditure will be challenging. We will keep a close eye on the running costs of the Church as the year goes on.

We would welcome any ideas and help from all of you on how to raise money and reduce costs, such as ideas for fundraising and ways to reduce energy use!

Jon Hooper Treasurer 25 February 2023.

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

Note on labelling of funds

Churches generally separate out their transactions and assets into three categories.

The main category is called ‘general’ or ‘unrestricted’ funds which are available for spending on anything.

The second category is called ‘designated’ funds, which are again funds which the church can spend on anything, but have been designated by the PCC towards a specific purpose.

Finally, the third category of funds is called ‘restricted’ as they can only be spent according to the wishes of the donor.

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022

Notes
INCOME AND ENDOWMENTS
Voluntary Income
2a
Activities for generating funds
2b
Income from investments
2c
Income from church activities
2d
TOTAL INCOME
EXPENDITURE
Charitable giving
3a
Church activities
3b
Investment outgoings
3c
TOTAL EXPENDITURE
SURPLUS / DEFICIT
Gains on investments
Transfers between funds
NET MOVEMENT IN FUNDS
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
TOTAL
2022
£
£
£
£
121,491
13,069
1,223
135,783
9,378
9,378
12,802
12,802
22,462
22,462
166,133
13,069
1,223
180,425
1,115
1,216
1,223
3,554
158,702
(28)
272
158,946
2,694
2,694
162,511
1,188
1,495
165,194
3,622
11,881
(272)
15,231
(2,726)
0
(2,726)
0
0
0
0
896
11,881
(272)
12,505
0
197,343
247,978
445,321
896
209,224
247,706
457,826		 2021
£
228,979
4,162
11,931
14,081
259,153
6,616
251,320
2,664
260,600
(1,447)
5,776
0
4,329
440,992
445,321

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

BALANCE SHEET AS AT 31ST DECEMBER 2022

Notes
FIXED ASSETS
Tangible
5a
Investments
5b
Office equipment
5c
CURRENT ASSETS
Debtors
6
Cash at bank
TOTAL ASSETS
LIABILITIES
Amounts falling due within 1 year
7
TOTAL NET ASSETS
8
REPRESENTED BY
Funds:
General
9
Designated
9
Restricted
9		 2022
£
355,438

46,219
0
401,657

12,796
56,224
69,020

470,677

12,851
457,826

0
210,120

247,706

457,826
 2021
£
355,438
48,946
0
404,384
60,047
52,255
112,302
516,686
71,365
445,321
0
197,343
247,978
445,321

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

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

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.

Depreciation

No depreciation is provided on consecrated and beneficed property as its cost is unknown and by reason of it being unsaleable by its nature and age, being 50 or more years old.

No depreciation is provided on other property assets as their current 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.

THE PAROCHIAL CHURCH COUNCIL (PCC) 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.

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.

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

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
Fund raising events
Holiday club
Other funds generated
Investment income
2c
Interest
Property rent
Income from church activities 2d
Fees payable to the PCC
Hall and Parish Rooms
TOTAL INCOME		 Unrestricted
Designated
Restricted
TOTAL
Funds
Funds
Funds
2022
£
£
£
£
80,997
80,997
6,192
6,192
22,730
2,293
25,023
11,572
10,776
1,223
23,571
121,491
13,069
1,223
135,783
3,511
3,511
1,455
1,455
4,412
4,412
9,378
0
0
9,378
2,802
2,802
10,000
10,000
12,802
0
0
12,802
3,712
3,712
18,750
18,750
22,462
0
0
22,462
166,133
13,069
1,223
180,425		 TOTAL
2021
£
90,350
2,451
25,228
110,950
228,979
219
1,350
2,593
4,162
2,331
9,600
11,931
2,844
11,237
14,081
259,153

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

3. EXPENDITURE

Unrestricted
Designated
Restricted
Funds
Funds
Funds
Note
£
£
£
Missionary and charitable giving
3a
1,115
1,216
1,223
Church activities
3b
Ministry:
Parish
85,200
Staff expenses
2,016
Church running expenses
19,824
Hall and Parish Rooms
13,174
Property upkeep
0
Churchyard
150
Youth work costs
9,266
Services and resources
7,556
272
Holiday club
829
Administration
19,326
Fund Rasing Costs
1,361
0
Other Costs
0
Refurbishments
(28)
0
158,702
(28)
272
Investment outgoings
3c
Property upkeep .
2,694
0
0
TOTAL EXPENDITURE
162,511
1,188
1,495
4. Staff costs and Trustee Donations
Within youth work costs and Church administration costs are:
Salaries and employer’s National Insurance
Employer’s pension contributions
Total		 Unrestricted
Designated
Restricted
Funds
Funds
Funds
Note
£
£
£
Missionary and charitable giving
3a
1,115
1,216
1,223
Church activities
3b
Ministry:
Parish
85,200
Staff expenses
2,016
Church running expenses
19,824
Hall and Parish Rooms
13,174
Property upkeep
0
Churchyard
150
Youth work costs
9,266
Services and resources
7,556
272
Holiday club
829
Administration
19,326
Fund Rasing Costs
1,361
0
Other Costs
0
Refurbishments
(28)
0
158,702
(28)
272
Investment outgoings
3c
Property upkeep .
2,694
0
0
TOTAL EXPENDITURE
162,511
1,188
1,495
4. Staff costs and Trustee Donations
Within youth work costs and Church administration costs are:
Salaries and employer’s National Insurance
Employer’s pension contributions
Total		 Unrestricted
Designated
Restricted
Funds
Funds
Funds
Note
£
£
£
Missionary and charitable giving
3a
1,115
1,216
1,223
Church activities
3b
Ministry:
Parish
85,200
Staff expenses
2,016
Church running expenses
19,824
Hall and Parish Rooms
13,174
Property upkeep
0
Churchyard
150
Youth work costs
9,266
Services and resources
7,556
272
Holiday club
829
Administration
19,326
Fund Rasing Costs
1,361
0
Other Costs
0
Refurbishments
(28)
0
158,702
(28)
272
Investment outgoings
3c
Property upkeep .
2,694
0
0
TOTAL EXPENDITURE
162,511
1,188
1,495
4. Staff costs and Trustee Donations
Within youth work costs and Church administration costs are:
Salaries and employer’s National Insurance
Employer’s pension contributions
Total		 TOTAL
2022
£
3,554
85,200
2,016
19,824
13,174
0
150
9,266
7,828
829
19,326
1,361
0
(28)
158,946
2,694
165,194
2022
£
21,887
368
22,255		 TOTAL
2021
£
6,616
85,200
2,016
19,824
13,174
0
150
9,266
7,556
272
829
19,326
1,361
0
0
(28)
0		 85,200
858
13,379
9,040
180
671
5,595
10,239
727
18,759
106
144
106,422
158,702
(28)
272		 251,320
2,694
0
0		 2,664
162,511
1,188
1,495		 260,600
2021
£
19,691
324
20,015

Each of the four Readers was granted a sum of £250 each

Other than reimbursement of expenses incurred, no payments were paid to any PCC member, person closely connected or related to them, or related parties.

In 2022, members of the PCC, being Trustees of the Charity, contributed £29,371 by way of donations.

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

5. Fixed Assets 2022 2021
(a) Tangible
Consecrated and benefice property assets - Hall, adjacent Parish Rooms with Flat at
nominal value		 2 2
Freehold property at cost 355,436 355,436
355,438 355,438
(b) Investments
Market value 1st January 48,946 43,170
Investments Sold at market value 0 0
Unrealised (loss)/gain on revaluation (2,727) 5,776
Market value 31st December 46,219 48,946
The investments are in the CBF Investment Fund and the Equities Investment Fund for Charities (Charifund).
(c) Equipment at cost 7,588 7,588
Less accumulated depreciation 7,588 7,588
Net book value at 31st December 0 0
6. Debtors (Unrestricted Funds) 2022 2021
Amounts falling due within one year:
Gift aid recoverable 5,554 5,232
Other debtors 7,242 54,815
12,796 60,047
7. Liabilities 2022 2021
Amounts falling due within one year:
Accounts payable 8,331 7,471
Other creditors 4,520 63,894
12,851 71,365

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

8. Analysis of net assets by fund

Tangible fixed assets
Investment fixed assets
Equipment fixed assets
Current assets
Current liabilities
9. Funds
Unrestricted Fund
General
Designated Funds
Maintenance
House
Working Capital
Projects
Organ
Mission and charity
Restricted Funds
House
Projects
Organ
Mission and charity
Vicar's Discretionary
Bal fwd
01 Jan
2022
£
-		 General
Fund
Designated
Fund
Restricted
Fund
Total
Funds
£
£
£
£
109,838
245,600
355,438
46,219
46,219
0
13,751
53,167
2,106
69,024
(12,851)
(12,851)
896
209,224
247,706
457,826
Income
Expenditure
Losses
Funds
Bal fwd
Transfer
31 Dec
2022
£
£
£
£
£
166,133 (162,511) (2,726)
(896)
-
39,344
109,838
18,500
26,986
2,675
-		 896
40,240
109,838
18,500
11,853 28
38,867
2,675
1,216(1,216)
-
197,343 13,965(1,188)
0
210,120
245,600
-
-
-

2,378		 245,600
-
-
-
-
1,223
(1,495)
(272)
- -
2,378
247,978 1,223 (1,495)
--247,706

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

10. Charitable and other donations

The PCC made grants totalling £3,554 (2021 - £6,166) 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:-

New Hope Trust
Diocese of London
Children's Society
Royal British Legion
Macmillan Coffee morning
Lynda Jackson
Alzheimer Society
Tearfund
Michael Sobel		 450
70
295
210
521
998
225
455
330
3,554

In addition to the above the PCC paid out of youth work costs £852 to the London Diocesan Willesden Area Education Fund.

Approval of Report and Financial Statements

The Report, Financial Statements and Activity Reports were approved by the Parochial Church Council on 29[8h] March 2022 and signed on their behalf, by Chairperson.

Ann Lynes

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

Independent Examiner's Report to the Parochial Church Council of Holy Trinity Northwood

I report on the accounts of the charity for the year ended 31[st] of December 2022 which are set out on pages 5 to 13.

Respective responsibilities of the PCC and examiner and basis of report

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

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.

Basis of independent examiner’s report

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:

I have no concerns and have come across no other matter in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Date: 23 March 2023

Shahbaz Ahmed ACA; FCCA LPS Livingstone Limited Chartered Accountants Relevant Professional body: Institute of Chartered Accountants in England and Wales

Address: Suite F3 Wenzel House, Olds Approach, Tolpits Lane, Watford, WD18 9AB.

THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD

Holy Trinity Northwood Budget for year ending 31st December 2023

General Fund Actual for 2022 Budget for 2023
£ £
Incoming Resources
Planned Giving 80,998 83,200
Loose Plate 6,192 6,600
Gift Aid 22,730 22,800
Donations 10,667 8,700
Fund raising 3,511 5,500
Holiday Club 1,455 1,500
Other 4,412 4,400
Interest 2,802 2,000
Rent 10,000 10,600
Fees to PCC 3,712 3,700
Hall and Parish Rooms Hire 18,750 18,500
Total income 165,227 167,500
Outgoing Resources
Common Fund 85,200 87,775
Staff expenses 2,016 2,000
Services and Resources 7,556 8,143
Church Running Costs 19,824 17,586
Youth Work 9,266 7,610
Holiday Clubex 829 750
Fund Raising Costs 1,361 0
Churchyard 150 500
Church Hall and Parish Rooms Costs 13,174 22,839
Administration 19,536 19,022
Cloister Flat 585 0
Tanworth Close House 2,110 1,275
Total expenditure 161,605 167,500
Surplus / (Deficit) for the period 3,622 -
Reduction in value of investments -2,726 -
Overall Surplus / (Deficit) 896 -

THE PAROCHIAL CHURCH COUNCIL IPCC} OF THE ECCLESIASTICAL PARISH OF HOLY TRINrrY NORTHWOOD holy trinity northwood 1131T24 av￿1(Oming communityofchrist & open toG￿ & inclu5weoffall & 5etvingoneon¢kher Vicor Rev. Ann Lynes Tel Emoll 01923 825731 vicar@hinorthwood.w.uk PARISH OFFICE Address Gatewwclose Northwood HA6 2RP 01923 822990 office@htnorthwogd.co.uk @htnorthwood Admit)isirator Office hours Klrstyshlpman 93m- Ipm onday-Frid Tel Ernoil TwI￿eT www.htnorthwood.co.uk 16