## **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** - **The Church made a general £3,000 surplus in 2022, having made a £5,000 surplus in 2021.** - **Rising energy costs and inflation will make it very difficult to achieve the breakeven budget in 2023.** - **All church members are invited to work together to achieve the goals of the parish, including financial goals.** ## _**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. - 2 - **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._ - 3 - **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._ - 4 - **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_| - 5 - **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_**| - 6 - **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. - 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 ## **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. - 7 - **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. - 8 - **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_**| - 9 - **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. - 10 - **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_| - 11 - **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**| - 12 - **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 - 13 - **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: - 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 - The accounts did 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 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. - 14 - **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**|**-**| - 15 - 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