## **ANNUAL FINANCIAL REPORT Financial Review and Accounts**
## **for the year 2023**
**Presented to the Annual Church Meeting on 12 May 2024**
**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 2024 follow the review.
Key: **Blue** means good news, **Red** means bad news. Numbers are rounded for simplicity.
## **HEADLINES**
- **We collected around £2,000 more than we spent on day-to-day activities**
- **We had to spend £33,000 on necessary refurbishments, some of which was funded by a legacy donation of £25,000**
- **This led to an overall shortfall of around £6,000**
- **The final part of the legacy has been received in 2024.**
- **We will keep working (and praying) to move to a more positive financial position!**
## _**General funds**_
## _**2023 versus 2022**_
In 2023 the Church raised around **£171,000** and spent **£169,000** in its general account. This gives a surplus of **£2,000** .
This compares to 2022 where we raised **£166,000** and spent **£162,000,** which gave a surplus of **£4,000** .
The increase in money raised compared to 2022 comes mainly an increase in rental income **(+£3,550** ).
The increase in money spent compared to 2022 is mostly due to rising energy costs for the Church and Hall **(+£8,000** ) offset by reduced youth work costs **(-£4,000** ).
This small annual surplus will not be able to fund any major repairs or investment that will be needed to maintain the church in the future. The PCC is considering how best to secure funding for such investment going forward, such as by appeals or unplanned income.
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## _**Designated and Restricted Funds**_
Necessary major refurbishments of the electrical system in the vestry and replacing the doors and windows in the Church Office cost **£33,000** in 2023. A significant legacy donation of **£25,000** offset these costs, but there remained a shortfall of around **£8,000** .
The last part of the legacy donation has been received in 2024 and the PCC is considering how best to invest this money. However, further investment must be funded from another source, such as appeals.
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 decreased by **£8,000** in 2023, mostly due to the overall shortfall.
The total assets of **£451,000** is mostly made up of a house ( **£355,000** ) which was used as accommodation for church staff in 2023 but is now being rented. There is also **£45,000** in investments and **£54,000** cash in the bank. This may sound like a lot, but major renovations of the type necessary in 2023 of around £35,000 would use up the cash and investments in 3 years if not matched by major donations or appeals.
## _**The Budget for 2024**_
The budget for 2024 is included at the end of this report. It reflects the expectations of the PCC for 2024 and would result in the money raised by the church matching the money spent in 2024. Overall income is budgeted to increase to **£187,000** in 2024 compared with £171,000 in 2023. A large part of this is the expected rental income increasing by **£15,000** , which will be spent on improving the property.
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 to **£187,000** , from £169,000 in 2023. In addition to property upkeep noted above, increased energy costs and common fund contribution are budgeted. The cost of children or youth workers are not included, though it is hoped that it may be possible to recruit one or both in the year. 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 15 April 2024._
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**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._
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2023**
|Note
INCOME AND
ENDOWMENTS
Donations and legacies
2a
Charitable activities
2b
Income from investments
2c
Other income
2d
TOTAL INCOME
EXPENDITURE
Charitable giving
3a
Church activities
3b
Investment outgoings
3c
TOTAL EXPENDITURE
SURPLUS / DEFICIT
Gains/(Losses) on
investments
Transfers between funds
NET MOVEMENT IN
FUNDS
Total funds brought
forward
Total funds carried
forward|**Unrestricted**
**Funds**
Designated
Restricted
Funds
**TOTAL**
Funds
**2023**
**£**
£
£
**£**
122,483
31,102
2,458
**156,043**
21,097
0
2,040
**23,137**
17,260
0
0
**17,260**
9,903
0
0
**9,903**
170,743
31,102
4,498
**206,343**
0
2,177
1,420
**3,597**
164,915
36,968
3,078
**204,961**
3,942
0
0
**3,942**
168,857
39,145
4,498
**212,500**
**1,886**
-8,043
0
**-6,157**
-1,086
**-1,086**
**1,886**
**-9,129**
**0**
**-7,243**
**0**
**210,120**
**247,706**
**457,826**
**1,886**
**200,991**
**247,706**
**450,583**|2022
_£_
135,783
22,462
12,802
9,378|
|---|---|---|
|||180,425|
|||3,554
158,946
2,694|
|||165,194|
|||15,231
-2,726
0|
|||12,505
445,321|
|||457,826|
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## **BALANCE SHEET AS AT 31ST DECEMBER 2023**
|Notes
FIXED ASSETS
Tangible
5a
Investments
5b
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|2023
**£**
355,438
45,133
**400,571**
7,249
54,298
**61,547**
**462,118**
11,535
**450,583**
1,886
200,991
247,706
**450,583**|2022
**£**
355,438
46,219|
|---|---|---|
|||**401,657**
12,796
56,224|
|||**69,020**
**470,677**
12,851|
|||**457,826**|
|||0
210,120
247,706|
|||**457,826**|
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **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.
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**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.
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**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
**Charitable Activities**
**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
Weddings and funerals
Hall and Parish Rooms
**TOTAL INCOME**|**Unrestricted**
**Designated**
**Restricted**
**TOTAL**
**Funds**
**Funds**
**Funds**
**2023**
**£**
£
£
**£**
82,380
**82,380**
8,022
**8,022**
21,891
413
170
**22,474**
10,190
5,689
2,288
**18,167**
25,000
**25,000**|
|---|---|
||122,483
31,102
2,458
**156,043**|
||5,981
**5,981**
1,507
**1,507**
2,415
**2,415**|
||9,903
0
0
**9,903**|
||3,710
**3,710**
13,550
**13,550**|
||17,260
0
0
**17,260**|
||1,976
**1,976**
1,485
2,040
**3,525**
17,636
**17,636**|
||21,097
0
2,040
**23,137**|
||**170,743**
**31,102**
**4,498**
**206,343**|
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## **3. EXPENDITURE**
|**Unrestricted**
**Designated**
**Restricted**
**TOTAL**
**Funds**
**Funds**
**Funds**
**2023**
Note
**£**
£
£
**£**
**Missionary and**
**charitable giving**
**3a**
2,177
1,420
**3,597**
**Church activities**
**3b**
Ministry:
Parish
87,775
**87,775**
Staff expenses
1,729
**1,729**
Church running expenses
17,086
**17,086**
Hall and Parish Rooms
17,898
**17,898**
Churchyard
660
**660**
Youth work costs
4,776
**4,776**
Services and resources
7,986
4,100
**12,086**
Holiday club
519
**519**
Administration
22,199
**22,199**
Fund Rasing Costs
2,404
**2,404**
Weddings and funerals
1,883
2,040
**3,923**
Other Costs
0
1,038
**1,038**
Refurbishments
32,868
**32,868**
164,915
36,968
3,078
**204,961**
**Investment outgoings**
**3c**
Property upkeep .
3,942
**3,942**
TOTAL EXPENDITURE
168,857
39,145
4,498
**212,500**
**4. Staff costs and Trustee Donations**
**2023**
_2022_
**£**
_£_
Within youth work costs and Church administration costs are:
Salaries and employer’s National Insurance
**13,148**
_21,887_
Employer’s pension contributions
**890**
_368_
Total
**14,038**
_22,255_|**_TOTAL_**
**_2022_**
_£_
_3,554_|
|---|---|
||**_85,200_**
**_2,016_**
**_19,824_**
**_13,174_**
**_150_**
**_9,266_**
**_7,828_**
**_829_**
**_19,326_**
**_1,361_**
**_0_**
**_0_**
**_-28_**|
||**_158,946_**|
||**_2,694_**|
||**_165,194_**|
|||
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 2023, members of the PCC, being Trustees of the Charity, contributed £27,201 by way of donations.
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## **5. Fixed Assets**
|**5. Fixed Assets**
(a) Tangible
Consecrated and benefice property assets - Hall, adjacent Parish
Rooms with Flat at nominal value
Freehold property at cost
(b) Investments
Market value 1st January
Investments Sold at market value
Unrealised (loss)/gain on revaluation
Market value 31st December|**2023**
**2**
**355,436**
**355,438**
**46,219**
**0**
**-1,086**
**45,133**|_2022_
_2_
_355,436_|
|---|---|---|
|||_355,438_|
|||_48,946_
_0_
_-2,727_|
|||_46,219_|
The investments are in the CBF Investment Fund and the Equities Investment Fund for Charities (Charifund).
|**6. Debtors (Unrestricted Funds)**
Amounts falling due within one year:
Gift aid recoverable
Other debtors
**7. Liabilities**
Amounts falling due within one year:
Accounts payable
Other creditors
**8. Analysis of net assets by fund**
Tangible fixed assets
Investment fixed assets
Current assets
Current liabilities|General
Fund
£
13,421
-11,535||**2023**
**2,470**
**4,779**
**7,249**
**2023**
**7,064**
**4,471**
**11,535**
Designated
Fund
Restricted
Fund
£
£
109,838
245,600
45,133
46,020
2,106||_2022_
_5,554_
_7,242_
_12,796_
_2022_
_8,331_
_4,520_|
|---|---|---|---|---|---|
|||||||
||||||_12,851_|
||||||**Total Funds**
**£**
**355,438**
**45,133**
**61,547**
**-11,535**|
||1,886||200,991
247,706||
**450,583**|
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## **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
Losses
Funds
**Bal fwd**
**01-Jan-23**
Transfer
**31-Dec-23**
**£**
£
£
£
£
**£**
**0**
170,743
-168,857
0
0
**1,886**|
||**40,240**
-1,086
**39,154**
**109,838**
**109,838**
**18,500**
**18,500**
**38,867**
25,025
-32,868
**31,024**
**2,675**
3,900
-4,100
**2,475**
**0**
2,177
-2,177
**0**|
||**210,120**
31,102
-39,145
-1,086
0
**200,991**|
||**245,600**
**245,600**
**-272**
4,498
-4,498
**-272**
**2,378**
**2,378**|
||**247,706**
4,498
-4,498
0
0
**247,706**|
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
## **10. Charitable and other donations**
The PCC made grants totalling £3,421 (2022 - £3,554) 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:-
HT Church Northwood - Charitable Donations 2023
||£|
|---|---|
|Malawi School|406|
|Mount Vernon Cancer Charity|500|
|Lynda Jackson Macmillan Centre|620|
|Tearfund|305|
|Macmillan|236|
|St Georges College Jerusalem|677|
|One YMCA|677|
|TOTAL|3421|
## **Approval of Report and Financial Statements**
The Report, Financial Statements and Activity Reports were approved by the Parochial Church Council on XX April 2024 and signed on their behalf, by Chairperson.
Ann Lynes
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**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 2023 which are set out on pages 5 to 13.
## **Respective responsibilities of the PCC and examiner and basis of report**
I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31 December 2023.
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.
## **Independent examiner’s statement**
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: 18 April 2024
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.
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**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 2023**|**Budget for 2024**|
|---|---|---|
||**£**|**£**|
|**Incoming Resources**|||
|Planned Giving|82,380|83,000|
|Loose Plate|8.022|6,600|
|Gift Aid|21,891|22,800|
|Donations|10,190|9,000|
|Fund raising|5,981|7,500|
|Holiday Club|1,508|1,500|
|Other|2,415|3,000|
|Interest|3,710|4,000|
|Rent|13,550|28,850|
|Fees to PCC|3,461|3,700|
|Hall and Parish Rooms Hire|17,636|18,000|
|**Total income**|**170,743**|**186,750**|
|**Outgoing Resources**|||
|Common Fund|87,775|91,300|
|Staff expenses|1,729|2,000|
|Church running expenses|17,086|18,866|
|Hall and Parish Rooms|17,898|23,356|
|Property upkeep|3,942|14,873|
|Churchyard|660|500|
|Youth work costs|4,776|500|
|Services and resources|7,986|9.970|
|Holiday club|519|750|
|Administration|22,199|22,135|
|Fund Rasing Costs|2,404|2,500|
|Weddings and funerals|1,883|0|
|**Total expenditure**|**168,857**|**186,750**|
|**Surplus / (Deficit) for the period**|**1,886**|**-**|
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**THE PAROCHIAL CHURCH COUNCIL (PCC) OF THE ECCLESIASTICAL PARISH OF HOLY TRINITY NORTHWOOD**
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