REGISTERED CHARITY NUMBER: 1131770
Report of The Trustees and Financial Statements for the Year Ended 31 December 2024
Parochial Church Council of the Ecclesiastical Parish of Highfield (Known as Highfield Church) Southampton
Parochial Church Council of Highfield Church, Southampton
Contents
| Report of The Trustees for the year ended 31 December 2024 | 3 |
|---|---|
| Reference and Administrative Details | 3 |
| Structure, Governance and Management | 5 |
| Structure and Operation of the PCC | 5 |
| Compliance | 5 |
| Safeguarding | 6 |
| Aims and Purposes | 7 |
| PCC Secretary’s Report | 7 |
| Report on the Electoral Roll | 8 |
| Reports from Management Committees | 8 |
| Human Resources Team Report | 8 |
| Building Resources Team Report | 10 |
| Financial Review | 11 |
| Summary of Financial Statements for 5 years | 16 |
| Independent Examiners Report to the Trustees of | 17 |
| The Parochial Church Council of the Ecclesiastical Parish of Highfield, Southampton | |
| Statement of Financial Activities and Statement of Total Recognised Gains and Losses | 18 |
| Balance Sheet | 19 |
| Statement of Cash Flows | 20 |
| Notes to the Financial Statements | 21 |
| Prior Year - Statement of Financial Activities and Statement of Total Recognised Gains and Losses | 36 |
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Parochial Church Council of Highfield Church, Southampton
Report of The Trustees for the year ended 31 December 2024
The Trustees present their report with the financial statements of the charity for the year ended 31 December 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' for FRS 102.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity Number: 1131770 Parish: Christ Church, Portswood (Highfield Church, Southampton) Highfield Lane, Southampton, Hants, SO17 1RL
Trustees:
During the twelve months to 31st December 2024, the following served as members of the PCC:
| Alan Finney | From Oct 2020 (2nd Term) |
|---|---|
| Alasdair Douglas | From Oct 2020 (2nd Term) |
| Becky Proctor | Churchwarden |
| Ben Mobley | From April 2024 (1st Term) |
| Caroline Hutchings | From April 2022 |
| Christine Sinclair | Ds From April 2021 (2nd Term) |
| Daisy Wood | From Oct 2020 (2nd Term) |
| David Tozer | From April 2021 (2nd Term) |
| Erica Roberts | Clergy |
| Hannah Stanley | Ds From April 2024 (1st Term) |
| Jacob Racklyeft | Co-Opted From April 2024 |
| Keith Fox | Clergy (From June 2024) |
| Lisa Roberts | From Oct 2020 (2nd Term) |
| Max Davies | From April 2021 (2nd Term) |
| Mike Archer | Clergy |
| Penny Cox | Co-Opted From Oct 2024 |
| Pete Marston | From April 2024 (1st Term) |
| Phil Hewitt | Churchwarden |
| Polly Cross | From April 2022 (1st Term) |
| Richard Venable | From April 2024 (1st Term) |
| Rob Heather | From April 2023 (1st Term) |
| Sarah Archer | Clergy |
| Sue Coleman | Clergy (From June 2024) |
| Zoe Norton | From October 2020 (2nd Term) |
Members of the PCC are either ex officio or are elected at the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. PCC members stand for 3-year terms, unless co-opted by the Vicar, in which case they serve up to the next election and will have to re-stand. Members are eligible for re-election for a second 3-year term. Churchwardens are elected annually and hold automatic positions on Standing Committee and PCC.
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Parochial Church Council of Highfield Church, Southampton
Of those detailed above, Chris Sinclair, Hannah Stanley and Keith Fox were our Deanery Synod representatives in 2024 and are elected for three-year terms as for other PCC members.
During the 2024 year, others served on the PCC as follows:
Rachele Newman Churchwarden Stepped down at Oct 2024 SGM Phil Moss Churchwarden Stepped down at Oct 2024 SGM Paula Willis Member Of PCC Stepped down at 2024 APCM after one term Independent Examiner: Independent Examiners Ltd Unit 2, The Broadbridge Business Centre, Delling Lane, Bosham, West Sussex. PO18 8NF. Bankers: Lloyds, 92-94 Above Bar Street, Southampton, SO14 7DT Cooperative Bank 1 Balloon St, Manchester M60 4EP
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Parochial Church Council of Highfield Church, Southampton
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Parochial Church Council (“PCC”) of Highfield Church is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure and was required to register with the Charity Commission in 2009. The Registered Charity Number is 1131770. Accordingly, the Church operates as a Charity and members of the PCC are the Trustees.
New Trustees: Appointment, Induction and Training
Appointment of new Trustees (i.e. new PCC members) is governed by and set out in the Church Representation Rules. New PCC members are elected at the Annual Parochial Church Meeting in April each Year. The first PCC meeting involving new members is usually held in April or May. At this meeting, the Vicar and Secretary explain the way the PCC works and responsibilities of PCC members as Trustees. Newly-elected members are issued with a Church of England booklet entitled “Trusteeship – An introduction for PCC Members.” Annually, each PCC member completes a Trustee Eligibility Declaration and an HMRC Fit and Proper Persons Declaration.
Structure and Operation of the PCC
Highfield Church PCC is the governing body within the Church, assisting the Vicar to promote the mission of the church (including its pastoral, evangelistic, social and ecumenical facets), within the parish and with our mission partners locally, nationally and overseas.
The PCC is also responsible for maintaining the Church and Church Centre. Highfield Church operates as a charity, and the members of the PCC are the trustees. The PCC operates through various management subcommittees and ministry groups, which meet between full meetings of the PCC where necessary, otherwise continuing with their work without the need for scheduled meetings. Where meetings have taken place, minutes of these are distributed to the PCC, forming part of the business agenda of the regular PCC meetings.
Management Committees consist of the following, who each have contributions in the following sections of this report:
Standing Committee, which has the authority to transact the business of the PCC between its meetings, subject to any directions given by the PCC. Along with the Churchwardens, it supports the Vicar in stewarding and directing the life of the church. Standing Committee prepares agendas for PCC Meetings, the APCM and Parishioners’ Meeting, and is chaired by the Vicar.
Human Resources Team, which advises the Vicar and PCC on employment and management of personnel employed by the PCC as well as volunteers, and is currently led by Polly Cross.
Buildings Resources Team, which manages the external and internal fabric of the Church and the Church Centre. It is responsible for implementing recommendations in the quinquennial report, and preparing development plans for the buildings, liaising with the diocese and other professionals as necessary. This team is currently led by Phil Hewitt.
Financial Resources Team, which oversees the finances of the Church on behalf of the PCC. In association with the Treasurer, the group monitors income and expenditure, advises on ways of increasing the Church’s income, drafts the overall budget in collaboration with individual budget holders and is responsible for preparation of the annual accounts and audit. This team is currently led by Richard Venable and the role of Treasurer is held by Pete Marston.
COMPLIANCE
Related Parties
No Trustee is paid for the role of PCC member. Trustees may be reasonably reimbursed for expenditure incurred on behalf of the charity. Related party transactions are disclosed in the financial statements.
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Parochial Church Council of Highfield Church, Southampton
Risk Management
Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure that appropriate controls are in place to provide reasonable assurance against fraud and error. Risk assessment and action plans are reviewed regularly by the PCC. Actions to help to mitigate key areas of risk have been identified, and the PCC will endeavour to include such in the routine work of key members to ensure that actions are completed.
Safeguarding
The Parochial Church Council is committed to encouraging an environment where all people, and especially those who may be vulnerable for any reason are able to worship and pursue their faith journey with encouragement and in safety. Everyone, including the young, will receive respectful pastoral ministry recognising any power imbalance within such a relationship. To pursue this aim, the Parochial Church Council follows the safeguarding policies and procedures of the Church of England as set out in guidelines provided by the Bishop’s House in the following documents: -
“Protecting all God’s Children - Policy for safeguarding children in the Church of England”. “Promoting a Safe Church: Policy for safeguarding adults in the Church of England”.
Annually, the Parochial Church Council reviews and ratifies the Vulnerable Adults & Child Protection policies & associated guidance documents, revising these in the light of updated or new guidance issued by the Diocese.
Safeguarding remains a high priority at Highfield Church and is constantly reviewed and updated to stay in line with national and church best practice. Annually (September 2023), the PCC reviewed our Parish Safeguarding Policy Statement, responding to domestic violence and ex-offender’s (Sept. ’23) policies adopted the Church of England Safeguarding Policies and Practice Guidance, and updated the church website.
We will continue to actively promote a strong culture of safeguarding across all church groups, but especially in those comprising children, young people and students. Safer recruitment practices are adhered to across the church for paid posts and volunteering positions, in line with Church of England guidance, and all safeguarding concerns are recorded, reported and followed up appropriately.
As a parish, we continue to work in close partnership with Jackie Rowlands, as the Diocesan Safeguarding Officer on all matters (for example, information sharing, safe inclusion, advice, and policy). This church year (April 23-March 24) we have logged over 30 safeguarding concerns, an increase from 18 logged in the previous year. Concerns range from mental health problems to self-harm, possible neglect as well as occasional matters requiring police engagement.
The Parish Safeguarding Dashboard, introduced by the diocese in 2022, has been a helpful tool in auditing our processes and training needs and producing an action plan. We continued to use this in 2024, updating volunteer role descriptions and improving our recording processes for recruitment of volunteers. There is still more progress to make on our action plan in 2025.
Following the updated Church of England Safer Recruitment and People Management Guidance in 2022 we have moved to 3 yearly DBS checks and 3 yearly safeguarding training for all appropriate roles. The church office continues to support Andy King, with admin related to DBS checks and training. We have welcomed the use of the Church of England’s training portal by many of our volunteers. On the portal you will find many components that can be completed online and the portal records your training certificates in your personal training account, making it easier to record training and stay up to date.
Rachele Newman took over as our Parish Safeguarding Officer in October 2024, after Andy King resigned in summer 2024. Should you have any concerns or would like advice, please do contact him on safeguarding@highfield.church or 07723 461604. It is important for everyone to remain vigilant regarding safeguarding and to report any concerns to the safeguarding team or email.
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Parochial Church Council of Highfield Church, Southampton
GDPR
The Parochial Church Council oversaw measures to ensure compliance with General Data Protection Regulations of 2018. A Data Privacy Notice was drafted, and a statutory Data Protection Policy was prepared and approved by PCC in July 2018. Highfield Church is registered with the Office of the Information Commissioner.
Wider Network
The PCC includes in its membership Deanery Synod representatives who are elected to represent Highfield Church. The PCC also includes members of Diocesan Synod and General Synod who are on the electoral roll of Highfield Church. The PCC is thus part of the synodical structure of church government as established by the Church of England.
Aims and Purposes
Highfield Church’s Parochial Church Council has responsibility for cooperating with the Vicar in promoting the whole mission of the Church (pastoral, evangelistic, social, and ecumenical) within the ecclesiastical parish of Christchurch, Portswood (the legal name of the parish). The PCC also has financial and maintenance responsibilities for the Church and the Church Centre.
In planning activities over the year, the Vicar and the PCC consider the Charity Commission’s guidance on public benefit and seek to follow the specific guidance on charities for the advancement of religion. Thus, we aim to enable people in the Parish and our city to live out their faith through Encountering God in the services we offer, both in person and online, through Growing Together in small groups for mutual support and learning, and through Seeking the Kingdom by reaching others with the gospel and by serving human need. We have a particular focus on reaching and supporting students in Southampton University and working with our School to serve the parish.
Beyond its parish boundary, Highfield Church promotes and supports outreach and social justice work, whether with local, city-wide, national or international partnerships. All of these are consistent with our sense of calling and serve the Anglican Church’s five marks of mission.
PCC SECRETARY’S REPORT
God’s church is a living thing and as such nothing ever stays the same, so the focus of the PCC’s business varies each year. In 2024, there were some significant changes in the staffing, particularly of the Operations team, which required the attention of the PCC and the Human Resources team (a PCC sub-committee). We are grateful for the work of those staff who we had to say goodbye to over the year (see the Human Resources section of this report for more details) and also grateful for the team God has now provided, welcoming Dong, Rhiannon and Krystyna to their new roles.
We also had to ring the changes in some key volunteer roles, as Phil Moss and Rachele Newman stepped down as Churchwardens in October, and Becky Proctor and Phil Hewitt were elected in their stead at the Special General Meeting of 27th October. Phil M had served as Churchwarden for 3.5 years and Rachele for 1.5 years, including the extra responsibility (with Kelly Worthington and Sarah Archer) of holding the leadership of the church during Mike Archer’s sabbatical in the summer of 2024, during which time Phil chaired two PCC meetings. Rachele is now settling into her new role as Parish Safeguarding Officer, and Phil M remains active on the Financial Resources Team (while balancing family life with his new baby!), and we thank God for them both. Meanwhile, Phil Hewitt and Becky have been getting to grips with the significant responsibilities of Churchwarden, so we encourage every member of the church to support and pray for them in whatever way you can. We also had a change of PCC secretary in October, as Daisy Chan’s work took her to the Isle of Wight and Penny Cox took on the role. Again, we are very grateful for Daisy’s work as secretary and her voice in our meetings.
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Parochial Church Council of Highfield Church, Southampton
Another focus of PCC was the review and approval of our new list of 12 mission partners, which were presented to the wider church at the 2024 APCM. The Sunday visits of Bishop Martin from the Diocese of Goma, and of Luke Smith from Fusion in the autumn were illuminating and inspiring, and we look forward to more such visits in the future.
The PCC reviewed and improved some of its internal processes through the year, starting with significant discussion and prayer over the governance of it’s work. The old sub-groups were renamed (as described elsewhere in this report) to reflect new terms of reference approved by the PCC, and to clarify their responsibilities. A new approach to compiling the budget for the new year was then approved at a pair of PCC meetings in December, aiming to balance confidence
in covering our regular costs while managing less predictable expenditure. We are always conscious of our responsibility in stewarding the donations of you, our church members, trying to serve God faithfully and generously with that money, and pray that the budget for our church next year will do just that.
A big thank you from me to every PCC member – a voluntary role that requires time, wisdom and patience. We have been continuing to work on being led by the Holy Spirit even in our business meetings, pausing to pray when appropriate, and it has been wonderful to experience the sense of unity and genuine listening that this fosters in our discussions. In all things, we pray that God’s will be done – in our lives, in our PCC decisions, and in the work of the church. We trust in Him for our future, through 2025 and beyond.
Penny Cox, PCC Secretary
ELECTORAL ROLL AND CHURCH ATTENDANCE
At the time of reporting for the APCM, there are 265 people on the ecclesiastical Electoral Roll for the Parish.
Please note the following attendance numbers are for in-person church services only and are not reflective of the number of people attending our online services. Church Attendance, calculated as an average of the five Sundays in October 2024, was 271 adults and 36 children under 16 years of age (comparable figures for October 2023 were 273 adults and 37 children).
Attendance at YTH CHRCH calculated as an average of the four Sundays in October 2024, was 6 adults and 23 children under 16 years of age (comparable figures for October 2023 were 13 adults and 24 children).
Mid-week church attendance, calculated as an average of the four weeks in October 2024 was 16 adults.
REPORTS FROM MANAGEMENT COMMITTEES
HUMAN RESOURCES TEAM REPORT
The role of the Human Resources Team is to support the Church’s paid and voluntary staff and also provide accountability and governance to ensure the Church is a great employer, developing people and offering opportunity to achieve their full potential. The team aims to “promote and protect good working conditions; support and encourage all staff in the stewardship of their role to ensure there is growth within the work and in their personal lives for the greater glory of God in the Parish of Highfield and under the direction of the Vicar and PCC.”
Members of the Human Resources Team have skills such as workforce planning, recruitment, volunteer management, training, line management and safeguarding. We may advise PCC on matters such as recruitment, HR policy and employment law, assist by being involved in writing job descriptions, contracts and policies or taking part in recruitment, or scrutinise processes to ensure that we are a good employer. Most of this goes on behind the scenes.
It continues to be an enormous privilege to serve in this role and to support the wonderful clergy and staff
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Parochial Church Council of Highfield Church, Southampton
team whom we are so blessed with. The focus continues to be on our Discipleship Process and seeking to discern God’s leading in structuring our staff team to further our vision of Encountering God, Growing Together and Seeking the Kingdom. The year has continued to see much change and an enormous amount of work has gone on in the background, particularly in relation to recruitment and resourcing as we have continued to build the team. I am extremely grateful for the continued commitment and involvement on the Human Resources Team of Abi Baker, Rob Heather and Becky Hoddy, as well as Kelly and Mike.
STAFF CHANGES AND UPDATES IN 2024
Mike Archer took a 3 month sabbatical starting in May, and returning in August. Our heartfelt thanks and appreciation go to all of the team who supported during this time, and in particular to Kelly Worthington and Sarah Archer for all of their hard work in stepping up, as well as Rachele Newman and Phil Moss as Church Wardens who did such a huge amount behind the scenes.
Keith Fox and Sue Coleman joined as curates with us during the year who have been much welcomed to the staff team.
The year has seen a rebuilding of the operations team following Magdalena Norris’s departure from the role of Church Administrator in February and Tim Hyde’s retirement as Operations Manager in April. Significant planning and team structuring work has taken place and we have been blessed that Dong Zhao joined us as Operations Administrator in April and Gill Bullen joined us as our Parish Administrator on a fixed term contract from March to December. Alan Finney supported as Accounts Administrator on a temporary basis during the year.
Following much prayer and discernment, and an application and interview process, Rhiannon Nicholson transferred to the role of Operations Manager as a transitional arrangement over the summer, fully taking on this role in November. Krystyna England joined us as Creative Lead in October, supporting the work of the team in communications.
In YTH, Tim Taylor departed as Ordinand in May as he took up his curacy post. Grace Ohia joined us as maternity cover on a fixed term contract as Youth Ministry Assistant (Digital). Emily Daulby decided not to return to the role of Youth Worker following her maternity leave. Following this, Daphne Babbage was appointed to the role of Youth Worker in November.
In our student team, Tim Daulby continued his secondment to a self-funded role as Campus Pastor. Rhiannon Nicholson transferred to the role of Operations Manager. As at the end of 2024, recruitment for the role of Student Pastor was underway.
KEY VOLUNTEER CHANGES AND UPDATES IN 2024
In terms of key volunteer roles, Rachele Newman and Phil Moss stepped down as Church Wardens during the year and Phil Hewitt and Becky Proctor stepped in to these roles. Rachele Newman has been appointed as Parish Safeguarding Officer in place of Andy King and Phil Moss continues to serve on Standing Committee as outgoing warden. Penny Cox has been appointed as PCC secretary in place of Daisy Chan. Our heartfelt thanks go to each of Rachele, Phil M and Daisy for all that they have done and their service in these volunteer roles.
We could not do the work we do without the amazing support of our numerous volunteers and we are extremely grateful for all of the time, energy and commitment which so many of you give to the Church- our sincere thanks to each and every one of you who serve in this way. The support from our volunteers remains absolutely critical to the ongoing running of our Church and if you feel called to do more then please do speak to me, or any one of the staff team, who would be very happy to chat informally about the volunteering opportunities which exist.
Polly Cross, Human Resources Team Lead
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Parochial Church Council of Highfield Church, Southampton
BUILDINGS RESOURCE REPORT
Having got used to a new way of working with a Buildings Resouces Triplet supported by a volunteers group, there have then been personnel changes during the year. The Buildings Resources Triplet is now Ben Mobley, Rhiannon Nicholson (Operations Manager) and Phil Hewitt (Churchwarden).
The main projects worked on in 2024 were:
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In the Church Centre hall, the walls were repainted and the floor was sanded and re-finished.
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Outside the hall, tarmac was laid to refurbish the side path, including installation of an accessible ramp to the side door. This is a significant improvement making the path flat and safe.
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The fence between the Church Centre and the church yard was replaced. This is in keeping with the existing boundary and is now strong and no longer dangerous.
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Work continued to develop storage facilities for YTH equipment.
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A project to replace the Church Centre fire escape was initiated. This is a health and safety priority, but nevertheless has been a slow process due to the need for multiple quotations, the selection of a supplier, and then obtaining planning permission. The planning application was submitted at the end of 2024. The planning process itself is more tricky due to Highfield Church Centre being in a conservation area.
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The ‘mud garden’ behind the Church Centre has seen a short- term facelift, sourcing artificial turf and fencing the area. Longer term, there is less priority on further urgent action due to the closure of Little Acorns nursery. Instead, time is being taken to consider fully plans that would allow us to make an application for grant funding for a community project to create a usable space that would benefit our children, youth, student and wider congregational groups and also the local community.
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Ben Mobley has been very active, and early in the year he installed an improved mechanism for the church west window blind. Most significantly, Ben has done a great job with a major re-fit of the Chancel storage cupboard, allowing it to store a lot more equipment and also to store all the communion silverware etc from the vestry. Ben even managed to move a safe from the vestry so that the silverware is still under lock and key in its new location. Along with a faculty to dispose of old furniture, this work has cleared the way for the vestry to be redeveloped as a multi-purpose room, which we hope to achieve in 2025.
The Quinquennial Survey was carried out in March 2024, but the report was not received by the end of the year, so any needed repair work will be scheduled in 2025.
The Buildings Resources Team are very pleased to have the support of a willing group of volunteers, whose work in 2024 included tidying of the curate’s garden prior to the arrival of our new curate, as well as lots of smaller activities re-painting, re-greasing, re-seeding, and generally fixing things!
CLIMATE ACTION AND BUILDINGS GROUPS TOGETHER
The PCC have agreed that the Climate Action Group will report activities to the PCC through the Buildings Resources Team. This annual report therefore covers both, recognising that some topics are managed by the two groups together.
We have continued to explore the feasibility of installing solar panels on the church roofs. The PCC have approved this in principle, and we have passed the process for checking the feasibility and obtaining quotes to the Buildings Resources Team. For reducing our energy loss, we are pleased that the West Door is now mended and closes properly, thanks to work done by Ben Mobley.
We successfully applied for funding from the diocese under their ‘Quick Wins’ scheme, for replacing the inefficient fluorescent lights in the Church Centre Hall with energy efficient LED fittings. The old lights were costing about £3,000 each year. The new LED fittings should reduce this to about £300. The diocesan grant covered 50% of the cost, and should give a net payback in about 2½ months! The grant also enabled us to replace the lighting in the rear corridor with energy efficient units which incorporate motion sensors to further improve the energy efficiency. The PCC have approved installing swift boxes in the church tower, and we are waiting for faculty approval. We are also encouraging the PCC to review its energy provider, to check their ethical behaviour and green credentials.
Phil Hewitt, Churchwarden
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Parochial Church Council of Highfield Church, Southampton
FINANCIAL AND INCOME REVIEW
2024 has been a strong year financially, with God’s continued provision and the dedicated efforts of both the Financial Resources Team (FR Team) and the staff team in stewarding our resources wisely. Unlike the challenges of 2022 and 2023, inflation has stabilised, making it easier to forecast and manage costs effectively.
As you read more about the church finances in this report, I’d like to encourage you to see how your generosity has shaped our church community in 2024 and to look ahead with us as we faithfully steward the resources God has entrusted to us. Please note all quoted figures might slightly alter when the final accounts are checked by the Independent Examiner.
RESULTS FOR THE YEAR – INCOME AND EXPENDITURE
The financial results for the year covering both unrestricted and restricted income and expenditure resulted in a surplus of £27,339 (2023: £42,696). This positive trend continues from 2023, reflecting careful financial management and the generosity of our church family. We remain grateful for this stability and strive to balance financial security with stepping out in faith to pursue opportunities.
Looking at our income, we recorded a total of £661,329 (2023: £587,653), with the majority coming from regular donations. The Parish Giving Scheme (PGS) and its associated Gift Aid continue to be a major strength, accounting for 67% of our income, increasing further when other donations are included. PGS saw steady growth, with a notable increase in the autumn. We were also blessed to receive a one-off, unrestricted donation of £25,000, demonstrating the generosity within our congregation.
A special thanks goes to Phil Moss, our Gift Aid Secretary, and Dong Zhao in the office, whose meticulous work ensures we reclaim all eligible Gift Aid from HMRC.
The Church Centre remains a strong contributor, generating over £80,000—more than 14% of our total income. This revenue stream requires significant effort to maintain, and we are grateful to Kelly Worthington, Rhiannon Nicholson, Dong, and the Buildings Team for their hard work in ensuring the centre remains a key asset for both ministry and financial stability.
Grant funding remains a challenge, though we successfully secured three grants in 2024:
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£1,000 from JustSow for university campus coffee outreach.
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£1,124 from Winchester Diocese towards energy-efficient lighting upgrades.
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£5,000 from the New Wine Trust to support Youth Ministry outreach. Grant applications are time-consuming and uncertain, so we encourage anyone with experience or interest in securing grants to get involved.
Overall, income increased by 12.5%, exceeding budget expectations by 8%, which has provided financial stability and flexibility.
Turning to our expenditure, our greatest investment remains our dedicated staff team, who faithfully carry out the vision God has given us. In 2024, we continued to prioritise responsible stewardship, ensuring they have the resources and support needed to sustain and grow their impact. Careful management of staffing costs has enabled us to operate effectively while maintaining our commitment to the church’s mission. As I am sure has been covered in the Human Resources report, there were vacancies across the year, meaning that staff costs were about 8% under the budget but also meaning that many staff had to put in extra work to cover the vacant posts. Staff employment costs £278,321 (2023: £227,138) and remains our biggest area of expenditure.
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Parochial Church Council of Highfield Church, Southampton
We remained faithful in meeting our financial commitments to the Common Mission Fund/ Diocesan Parish Share, ensuring our continued support for the wider church and its mission. Our contribution is a significant figure of £111,586 (2023: £120,481) and it is great to be part of our wider church family and help those parishes less fortunate than us.
The Mission Partnership Team pushed on with new partners in 2024 and we were able to welcome the newer partners with some initial donations with the new regular giving starting in 2025. Under Caroline Hutching’s leadership, the Mission Partnership Team hit their budget and orchestrated giving away £42,968 (including some trivial admin costs) (2023: £41,077). The
Mission Partnership Team have an increased budget for 2025, and I look forward to seeing how they support our external partners.
A New Approach To Budgeting For 2025
After some detailed work around the causes of large differences between the originally forecast deficit for 2024 and the actual surplus results, Kelly, Phil (Moss) and I proposed a new budget model to PCC, which was unanimously approved. This revised approach divides expenditure into three key categories:
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Core Operations – Covering essential, ongoing costs such as staff salaries, the Common Mission Fund (CMF), utilities, church services, and mission partners. These are prioritised to ensure the church’s foundational activities continue without disruption.
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Ministry Programs – Encompassing discretionary or irregular activities, such as special events and outreach initiatives. Instead of full-year allocations, funding is divided into three seasonal budgets, each receiving one-third of the total. Before each new season, the PCC will reassess financial health—including income, reserves, and Core Operations expenditure—to determine how much can be allocated.
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Infrastructure Development – Covering development of our facilities and long-term projects. Critical projects are approved at the start of the year, while scheduled and aspirational projects are reassessed every four months to ensure financial sustainability.
This process allows greater adaptability, ensuring that resources are used efficiently while maintaining our commitment to the church’s mission and development.
Reserves And Strategic Financial Planning
As of 2024, the PCC’s financial position remains strong, with total net assets of £770,797 (2023:£743,458). These assets are divided across various funds and resources, ensuring both financial security and the ability to support ongoing and future church needs.
The General Fund remains our “day-to-day current” fund and is used for our Core Operations expenditure. In line with our Reserves Policy, I suggested to PCC that it should be kept around the £100,000 mark and that if there was excess, to move funds and if there was surplus, then to top it up.
From the 2023 accounts, you will see that the church had a significant Investment Fund which the PCC controls. After discussions around the new budget process and the reality of how the church uses its unrestricted funds, it was agreed by PCC to rename this fund into the Strategic Fund, still controlled by PCC, indicating that this fund can be deployed more easily where God calls us to go. This means our unrestricted funds at the end of 2024 are £624,695, with £100,000 in the General Fund and £524,695 in the Strategic Fund (2023 General Fund: £140,521).
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Parochial Church Council of Highfield Church, Southampton
The church’s other funds are designated or restricted across key areas to ensure financial sustainability and responsible stewardship and adherence to charity law:
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Fixed Assets (£66,238) – This includes church-owned property and other tangible assets.
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Essential Maintenance Fund (£25,000) – Set aside to address urgent maintenance and repairs to church facilities.
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Endowment Fund (£16,880) – Funds held in long-term investments, primarily through the Diocese.
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Restricted Funds (£37,984) – These funds have specific donor-imposed restrictions and cannot be used for general expenses.
This financial structure allows the church to maintain a healthy level of reserves while ensuring funds are appropriately allocated to sustain ministry, maintain facilities, and support future growth.
Church Bank Accounts
In last year’s report, I recommended switching from Lloyds to the Co-operative Bank due to service challenges. However, after experiencing similar frustrations with the Co-operative Bank and observing wider banking issues for faith-based charities in 2023 and 2024, we decided to retain our Lloyds current account while keeping the majority of Strategic Funds in two Co- operative savings accounts.
Managing the security and distribution of funds remains a priority. While we acknowledge the risk of holding large reserves in one institution, exceeding the £85,000 FSCS guarantee, the process of opening charity bank accounts is complex. I explored multiple alternatives in 2024, but none proved suitable. Identifying additional banking solutions remains an objective for 2025, and I welcome any suggestions or support from church members on this matter.
Stewardship And Financial Responsibility
At Highfield Church, we recognise that every financial gift is an expression of faith and trust in God’s provision. As stewards of these resources, we are committed to using them wisely, ensuring financial transparency, and making every pound count for the work of the church. We remain committed to fostering a culture of generosity and stewardship, encouraging regular giving, and seeking external funding sources such as grants to support specific ministries.
How We Use Donations Responsibly
We prioritise responsible financial management by ensuring that donations directly support the church’s mission, ministry, and essential operations. Our budgeting process is designed to allocate funds where they are most needed, balancing the ongoing costs of running the church with opportunities to expand our outreach and ministry programs. Every decision is prayerfully considered and guided by our commitment to honouring God through faithful stewardship.
Cost Management And Efficiency
We continue to take a disciplined approach to managing costs, ensuring that expenditure aligns with the church’s priorities. The revised budgeting process, which includes quarterly 4-monthly financial reviews, allows us to adjust spending based on our actual income and ensure that funds are used effectively. We also strive to make the best use of our assets, such as the Church Centre, which generates additional income to support our ministry while serving the wider community.
13
Parochial Church Council of Highfield Church, Southampton
Ethical And Sustainable Financial Practices
As a church, we seek to reflect our Christian values in how we manage our finances. This includes banking with institutions that align with ethical standards, such as the recent move to the Cooperative Bank, and ensuring that our investments are handled responsibly. We also remain committed to supporting mission partners, social action projects, and initiatives that serve those in need, both locally and globally.
Through careful financial planning, diligent cost management, and a strong commitment to ethical stewardship, we continue to ensure that every financial gift is used wisely to sustain and grow the church’s work for God’s Kingdom.
Reserves Policy
The reserves policy, established codified in 2019, is that the PCC should not allow unrestricted general funds to fall below three months of forecast, unfunded cost of employment for more than two consecutive quarters and that any forward 12-month forecast should not project those funds falling below one month forecast, unfunded cost of employment.
The PCC holds unrestricted funds, which are not designated, of £624,695 (2023: £140,521), which is above that limit.
The majority of PCC income continues to remain from unrestricted committed and regular personal giving, which is one of the strongest long-term reserves the PCC could have. A sustained effort continues, to maintain overall income, and to ensure that adequate resources are available to meet planned activities.
The PCC believes this will enable it to maintain the correct balance between the outward-looking strategy of the charity with the desire to achieve an appropriate level of reserves.
Principal Funding Sources
The staff salaries, activities and ministries of the church are mainly funded by the contributions received from members of the church and through the income tax recovered under the Gift Aid scheme. The Church Centre is funded through the letting of its rooms to outside organisations and individuals, but any shortfall would be funded by the PCC.
Investment Policy and Objectives
The PCC approved the investment policy to invest its funds via the Diocese of Winchester. This provides a lower rate of interest than could be obtained elsewhere, but the purpose of this investment is that it enables the Diocese to provide loans at a lower rate of interest to other parishes who need to borrow money. In this way the investments help the wider church.
Endowment Fund Policy
The PCC approved the investment policy to invest its endowment funds via the Diocese of Winchester. This provides a lower rate of interest than could be obtained elsewhere, but the purpose of this investment is that it enables the Diocese to provide loans at a lower rate of interest to other parishes who need to borrow money. In this way the investments help the wider church.
Independent Examiners
The Church is not required to undertake a full audit and is allowed to undertake an Independent Examination. Independent examination is a form of external scrutiny suitable for smaller charities. The role of the examiner is to provide an independent scrutiny of the accounts, and, in this way, help maintain public trust and confidence in charities. The benefit to the church is that it is a less time-consuming and costly process. The Church’s Independent Examiner is Independent Examiners Limited and were appointed in 2024.
14
Parochial Church Council of Highfield Church, Southampton
Approved by the Parochial Church Council on _______ and signed on their behalf by: 27/07/2025
U hele
M Archer Vicar and Chair of Trustees
15
Parochial Church Council of Highfield Church, Southampton
SUMMARY OF FINANCIAL STATEMENTS FOR 5 YEARS
The summary of Financial Statements for 5 years has been prepared to provide an overview of the PCC finances. It does not form part of the official financial statements but is based on them.
----- Start of picture text -----
RESULT FOR THE YEAR 2024 2023 2022 2021 2020
£k £k £k £k £k
Income from members including tax 514 459 453 417 401
Gift days & Retiring Collections 46 34 10 - 64
Income from parish fees and grants 11 7 11 82 53
Church Centre and other departments 84 79 43 42 41
Income from investments and interest 6 3 12 14 17
Total Income 661 582 528 555 576
Mission Giving and Donations 43 44 56 48 66
Diocesan Parish Share 112 120 125 120 124
Staff Costs 287 227 207 213 263
Church activities 20 14 12 10 17
Church maintenance and houses 14 22 67 23 22
Cost of Church Centre and departments 120 75 86 48 45
Church administration 21 26 23 19 20
Depreciation 17 17 16 20 23
Total Expenditure 634 545 592 501 580
Net Surplus/(Deficit) 27 37 -64 54 -4
Investment gains/losses & b/f adjustments 1 5 -2 22 31
Increase / (Decrease) in Funds 28 42 -66 76 27
Funds at start at year 743 701 767 691 664
Funds at end of year 771 743 701 767 691
FINANCIAL POSITION 2024 2023 2022 2021 2020
£k £k £k £k £k
PCC NET ASSETS
Fixed Assets 66 78 559 558 535
Investments 17 17 15 17 15
Bank balances, debtors & creditors 688 648 127 192 141
Total Net Assets 771 743 701 767 691
PCC FUNDS
Premises and fixed assets 66 78 559 558 535
Endowment and Restricted Funds 55 52 40 58 48
Investment Funds 525 448 0 0 0
Essential Maintenance Fund 25 25 0 30 30
General Fund 100 139 102 121 78
Total Funds 771 743 701 767 691
----- End of picture text -----
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Parochial Church Council of Highfield Church, Southampton
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF HIGHFIELD, SOUTHAMPTON
I report to the charity trustees on my examination of the accounts of The Parochial Church Council of the Ecclesiastical Parish of Highfield, Southampton (the Trust) for the year ended 31 December 2024.
Responsibilities and basis of report
As the charity trustees of the Trust, 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 Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a fellow member of the Association of Charity Independent Examiners which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or
-
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.
}
Jackie Irvine-Smith Independent Examiners Limited Unit 2, The Broadbridge Business Centre, Delling Lane, Bosham, West Sussex PO18 8NF 08/08/2025 Date: .............................................
17
Parochial Church Council of Highfield Church, Southampton
STATEMENT OF FINANCIAL ACTIVITIES AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31ST DECEMBER 2024
| Notes Income and endowments from: Donations and Legacies 2a Charitable Activities 2b Investment Income 2c Other Income 2d TOTAL Expenditure on: Charitable Activities 3a Raising Funds 3b TOTAL NET INCOME/(EXPENDITURE) BEFORE INVESTMENTS GAINS/(LOSSES) Gains/(losses) on 5c investments NET INCOME/(EXPENDITURE) Transfer Between Funds 9,10,11 Net movement in funds Reconciliation of funds: Total Funds Brought Forward Total Funds Carried Forward |
Unrestricted Designated Endowment Restricted TOTAL TOTAL Funds Funds Funds Funds 2024 2023 £ £ £ £ £ £ 486,554 - - 53,606 540,160 470,287 104,223 - - 10,584 114,807 109,754 5,526 - 458 - 5,984 2,851 - - - - - - 596,303 - 458 64,190 660,951 582,892 557,076 16,875 - 58,736 632,687 544,959 1,303 - - - 1,303 - 558,379 16,875 - 58,736 633,990 544,959 37,924 (16,875) 458 5,454 26,961 37,933 - - 378 - 378 4,761 37,924 (16,875) 836 5,454 27,339 42,694 446,250 (442,884) (458) (2,908) - - 484,174 (459,759) 378 2,546 27,339 42,694 140,521 550,997 16,502 35,438 743,458 700,764 624,695 91,238 16,880 37,984 770,797 743,458 |
|---|---|
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 21 to 35 form part of these financial statements.
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Parochial Church Council of Highfield Church, Southampton
BALANCE SHEET AS AT 31ST DECEMBER 2024
| Notes | Unrestricted | Designated | Endowment | Restricted | **31-Dec-24 ** | 31-Dec-23 | |
|---|---|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | Total | Total | ||
| £ | £ | £ | £ | £ | £ | ||
| Fixed Assets | |||||||
| Tangible assets | 5(a) | - | 66,238 | - | - | 66,238 | 77,667 |
| Investment assets | 5(c) | - | - | 16,880 | - | 16,880 | 16,502 |
| Current Assets | |||||||
| Debtors | 6 | 20,748 | - | - | - | 20,748 | 4,839 |
| Cash at bank | 7 | 652,789 | 25,000 | - | 37,984 | 715,773 | 663,596 |
| Total Current Assets | 673,537 | 25,000 | - | 37,984 | 736,521 | 668,435 | |
| Creditors:amounts | 8 | 48,842 | - | - | - | 48,842 | 19,146 |
| falling due within one year | |||||||
| NET CURRENT ASSETS | 624,695 | 25,000 | - | 37,984 | 687,679 | 649,289 | |
| TOTAL ASSETSless current liabilities | 624,695 | 91,238 | 16,880 | 37,984 | 770,797 | 743,458 | |
| NET ASSETS | 624,695 | 91,238 | 16,880 | 37,984 | 770,797 | 743,458 | |
| Funds of the Charity | |||||||
| General Unrestricted Funds | 624,695 | - | - | - | 624,695 | 140,521 | |
| Designated Funds | 9 | - | 91,238 | - | - | 91,238 | 550,997 |
| Restricted Funds | 10 | - | - | - | 37,984 | 37,984 | 35,438 |
| Endowment Fund | 11 | - | - | 16,880 | - | 16,880 | 16,502 |
| Total Funds | 624,695 | 91,238 | 16,880 | 37,984 | 770,797 | 743,458 |
Signed on behalf of the Trustees and PCC Members by:
U eles
…..............................................
….................................................. pe—
06/08/2025
Date …..............................2025
19
Parochial Church Council of Highfield Church, Southampton
STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31ST DECEMBER 2024
| 2024 £ Cash used in operating activities (a) 52,097 Cash used from investing activities Interest income 5,526 Purchase of tangible fixed assets (5,446) Disposal of investment assets - Cash provided by (used in) investing activities 80 Cash flows from financing activities Introduction/(Repayment) of long term borrowing - Cash used in financing activities - Increase/(decrease) in cash and cash equivalents in the year 52,177 Cash and cash equivalents at the start of the year 663,596 TOTAL cash and cash equivalents at the end of the year (b) 715,773 (a) Reconciliation of net movement in funds to net cash flow from operating activities 2024 £ Net movement in funds 26,961 Add back depreciation charge 16,875 Deduct interest income shown in investing activities (5,526) Decrease/(increase) in debtors (15,909) Increase/(decrease) in creditors 29,696 Net cash used in operating activities 52,097 (b) Analysis of cash and cash equivalents 2024 £ Cash at bank and in hand 715,773 Total cash and cash equivalents 715,773 |
2023 £ 59,961 451 (5,272) 473,330 468,509 - - 528,470 135,127 663,596 2023 £ 37,933 16,628 (451) 8,687 (2,836) 59,961 2023 £ 663,596 663,596 |
|---|---|
20
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024
1. ACCOUNTING POLICIES
Basis of preparation:
The Parochial Church Council of Highfield Church, Southampton is a charity with a registered charity number 1131770 which is registered and domiciled in England with the address of Highfield Lane, Highfield, Southampton, Hampshire, SO17 lRL.
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 by law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members. The financial statements are prepared in sterling which is the functional and presentational currency of the charity and rounded to the nearest pound.
Public benefit entity
The PCC is a public benefit entity within the meaning of FRS 102. 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, together with FRS 102 (2016) as the applicable accounting standards and the 2016 version of the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP (FRS 102)).
Critical accounting policies
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no material judgements that are considered by the trustees to have an impact upon these financial statements.
There are no material uncertainties about the charity's ability to continue in operation.
No changes to accounting estimates have occurred in the reporting period
No material prior year errors have been identified in the reporting period.
Funds
Endowment fund capital must be maintained permanently; only dividend income arising from investment of the endowment may be used as funds based on the purpose for which the endowment was established, which is for church fabric upkeep.
Restricted funds represent (a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest, and (b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. Explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Designated funds are general funds which remain unrestricted but are set aside by the PCC for use in the future. These funds cover investment property values and are also for the future depreciation of fixed assets and essential maintenance of premises.
21
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
Income recognition
Income is included in the Statement of Financial Activities (SOFA) when:
-
the charity becomes entitled to the income;
-
it is more likely than not that the trustees will receive the resources; and
-
the monetary value can be measured with sufficient reliability.
Planned giving, collections and donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate are received. Legacies are accounted for when the PCC is legally entitled to the amounts due and the amounts can be estimated with sufficient accuracy. Grants are recognised on receipt, any unspent income received for a specific purpose is shown within the relevant fund on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Dividends and bank interest are accounted for when receivable. All other income including church centre rental income is recognised when it is receivable. All incoming resources are accounted for gross.
Government grants
The charity has not received government grants during the reporting period.
Donated Services and Facilities
Donated services and facilities are included in the SOFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably.
Volunteer Help
The value of any voluntary help received is not included in the accounts but is described in the Trustees Annual Report. Volunteers are used in all aspects of the activities of the church, including serving, readings, prayers, offertory and collections, preparing and serving food and drink at church events, helping with providing hospitality to guests, assisting in the office and providing other supporting roles, including bookkeeping, accounting and reporting.
Investment gains and losses
All gains and losses are recognised in the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the PCC to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings
Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC. The diocesan quota or parish share is accounted for when due. Although there is no legal obligation to pay outstanding Common Fund, it is the policy of the PCC to provide for unpaid amounts in these accounts. There were no such provisions at 31st December 2024 or 2023. All other expenditure is generally recognised when it is incurred and is accounted for gross.
Redundancy costs
The PCC will seek to ensure that budgeting around staffing is done on a conservative basis. In the event that a role has to be made redundant, the PCC will follow current HR advice and practice, and will at least provide the statutory minimum in redundancy pay. Redundancy payments are recognised when the decision to terminate an employee's contract is taken and is demonstrably committed and measured as the best estimate for amounts due to settle the obligation and where material, discounted.
Pensions
During 2024, up to ten employees of the PCC were enrolled in a defined contribution workplace pension scheme. Employer’s pension contributions were £22,505 in 2024 (2023: £18,279).
22
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash at bank and in hand
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and - for the purpose of the statement of cash flows - bank overdrafts. Bank overdrafts are shown within 'Creditors: amounts falling due within one year' on the balance sheet.
Liabilities and provisions
Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
Fixed assets
Consecrated and beneficed property is excluded from the financial statements in accordance with the Charities Act 2011. No value is placed on moveable church furnishings held by the church wardens on special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property and no reliable cost information is available. All expenditure incurred, whether maintenance or improvement, during the year on consecrated or benefice buildings is written off as expenditure in the Statement of Financial Activities and separately disclosed. Expenditure on moveable furniture and equipment is capitalised.
The Church Centre is managed by Highfield PCC but, in common with previous years, only Building Improvements, Fixtures and Fittings (including furniture) are capitalised and depreciated.
Equipment with a purchase price of £500 or less is written off when the asset is acquired.
Depreciation is at the following annual rates in order to write off each asset over its useful economic life.
Church Centre Building Improvements 4% Straight line Church Centre Fixtures & Fittings 10% Straight line Church Services Fittings & Equipment 10% Straight line Other Equipment including computers 20% Straight line
Investment assets
Investments are initially recognised at their transaction value and subsequently measured at fair value at the balance sheet date using market prices. The Statement of Financial Activities includes net gains and losses arising on revaluations and disposals throughout the year. The PCC does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the PCC is that of volatility in markets due to economic conditions, the attitude of investors to investment risk, and changes in sentiment.
Investment property
Investment properties are shown at their open market value. The surplus or deficit arising from the annual revaluation are, ordinarily, recorded in the Statement of Financial Activities and transferred at the year end to the designated funds.
Leased assets: Lessor
Where assets are leased to a third party and give rights approximating to ownership (finance leases), the assets are treated as if they have been sold outright. The amount removed from the fixed assets is the net book value on disposal of the asset. The profit on disposal, being the excess of the present value of the minimum lease payments over net book value is credited to profit or loss. Finance lease payments are analysed between capital and interest components so that the interest element of the payment is credited to profit or loss over the term of the lease and represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts owed by the lessee.
Tax Status
As a charity, the PCC is exempt from paying income and corporation tax, however, the trustees monitor the nature of transactions to ensure these are appropriately disclosed to HM Revenue and Customs.
23
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
| 2. INCOME FROM: Notes a) Donations and Legacies Planned Gifts: Giving under Gift Aid Tax Recoverable Other tax efficient giving Non gift aidable giving Gift days and retiring collections Legacies Grant Income b) Charitable Activities Church Centre lettings Self-funded activities income Parish Fees c) Investments Dividends and Bank Interest Rental Income d) Other Income Insurance Claims |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2024 2023 £ £ £ £ £ 334,040 - - 334,040 336,193 88,552 - - 88,552 80,313 15,130 - 42,727 57,857 11,216 9,053 - - 9,053 7,828 14,779 - 3,755 18,534 17,864 25,000 - - 25,000 500 - - 7,124 7,124 16,373 486,554 - 53,606 540,160 470,287 83,538 - - 83,538 78,614 16,788 - 10,584 27,372 24,016 3,897 - - 3,897 7,124 104,223 - 10,584 114,807 109,754 5,526 - - 5,526 451 - - - - 2,400 5,526 - - 5,526 2,851 - - - - - - - - - - |
|---|---|
24
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
3. EXPENDITURE ON:
| Notes a) Charitable Activities Direct costs Missionary and Charitable giving: Mission partners - Church overseas Mission partners - Home missions Other gifts and donations Church Activities: Diocesan Common Mission Fund Clergy expenses Church services Church ministries Training costs Church running costs and maintenance: Utilities, Water and Rates Insurance Cleaning costs Repairs and Maintenance Service contracts Sundries Alpha and Outreach Office costs Depreciation Distribution of Parish fees Self funded activities expenditure Salaries and Wages Governance and Support: Independent Examiners Fees Professional Fees TOTAL Notes b) Raising Funds Advertising |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2024 2023 £ £ £ £ £ 19,584 - - 19,584 19,140 23,383 - - 23,383 21,937 - - 18,837 18,837 3,076 - - - 111,586 - - 111,586 120,481 247 - - 247 807 12,903 - 736 13,639 12,828 12,138 - 4,952 17,090 12,065 2,283 - 1,130 3,413 1,845 27,427 - - 27,427 25,297 9,392 - - 9,392 9,096 17,850 - - 17,850 16,291 23,571 - 1,124 24,695 7,159 3,830 - - 3,830 2,125 1,252 - - 1,252 2,401 515 - - 515 - 14,138 - 535 14,673 16,040 - 16,875 - 16,875 16,628 1,416 - - 1,416 1,617 16,788 - 9,428 26,216 23,197 256,326 - 21,994 278,320 227,137 1,530 - - 1,530 3,660 917 - - 917 2,132 557,076 16,875 58,736 632,687 544,959 Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2024 2023 £ £ £ £ £ 1,303 - - 1,303 - 1,303 - - 1,303 - |
|---|---|
25
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
4. DETAILS OF CERTAIN TYPES OF EXPENDITURE
| 4. DETAILS OF CERTAIN TYPES OF EXPENDITURE | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Independent examiner’s fees | 1,530 | 3,660 |
| Other fees (payroll and accountancy services) | 516 | - |
5 (a). TANGIBLE FIXED ASSETS
| Cost 1-Jan-24 Additions Transfers Cost at 31-Dec-24 Depreciation 1-Jan-24 Charge Depreciation 31-Dec-24 Net book value 31-Dec-24 Net book value 31-Dec-23 |
Unrestricted Unrestricted Unrestricted Total fund fund fund £ £ £ £ Church Church Other Centre Services Equipment Fixtures, Fixtures, Fittings & Fittings & Equipment Equipment 393,132 183,237 25,924 602,293 1,030 - 4,416 5,446 - - - - 394,162 183,237 30,340 607,739 364,880 142,082 17,665 524,627 5,622 8,615 2,638 16,875 370,502 150,697 20,303 541,502 23,660 32,540 10,038 66,238 28,252 41,155 8,260 77,667 |
|---|---|
5(b). INVESTMENT PROPERTY
The property, 104 Upper Shaftesbury Avenue (known as 104 USA) was sold in August 2023 for the price of £473,330 after Estate Agency and Conveyancing Fees. The monies were received in the church bank accounts in September 2023 and have formed a new unrestricted Designated Investment Fund for use by the PCC as well as £25,000 being moved into Essential Repair Fund. The Investment Fund (since renamed "The Strategic Fund") was moved to a Cooperative Bank savings account in 2024 and has started to accrue interest.
26
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
5 (c). INVESTMENT ASSETS
----- Start of picture text -----
Endowment TOTAL
fund 31-Dec-24
£ £
COIF
Income
Shares
Cost 1-Jan-24 16,502 16,502
Revaluation 378 378
Additions - -
- -
Disposals
Transfers Out - -
Cost at 31-Dec-24 16,880 16,880
----- End of picture text -----
These are COIF income shares. There were no investment assets outside the UK. Value is advised by the Diocese. These are known as the Endowment Funds
6. DEBTORS AND PREPAYMENTS
| Other Debtors and Prepayments Gift Aid Tax Recoverable Accounts Receivable 7. CASH AT BANK AND IN HAND Cash at Bank |
Unrestricted Designated Endowment Restricted Total Total Fund Fund Fund Fund 31-Dec-24 31-Dec-23 £ £ £ £ £ £ 9,286 - - - 9,286 3,851 2,639 - - - 2,639 988 8,823 - - - 8,823 - 20,748 - - - 20,748 4,839 Unrestricted Designated Endowment Restricted Total Total Fund Fund Fund Fund 31-Dec-24 31-Dec-23 £ £ £ £ £ £ 652,789 25,000 - 37,984 715,773 663,596 652,789 25,000 - 37,984 715,773 663,596 |
|---|---|
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Accounts Payable Accruals and Deferred Income Independent Examiners Fees Employer Pension Contributions HMRC PAYE and NI Other Creditors Hire Security Deposits Held |
Unrestricted Designated Endowment Restricted Total Total Fund Fund Fund Fund 31-Dec-24 31-Dec-23 £ £ £ £ £ £ 24,404 - - - 24,404 1,962 7,057 - - - 7,057 199 1,530 - - - 1,530 3,660 2,652 - - - 2,652 2,564 3,696 - - - 3,696 - 8,503 - - - 8,503 10,761 1,000 - - - 1,000 - 48,842 - - - 48,842 19,146 |
|---|---|
27
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
9. DESIGNATED FUNDS
CURRENT YEAR
| Fixed Asset Fund | Balance Gains and Balance 01-Jan-24 Losses Income Expenditure Transfers 31-Dec-24 £ £ £ £ £ £ 77,667 - - (16,875) 5,446 66,238 |
||
|---|---|---|---|
| Essential Repairs | Fund | 25,000 - - - - 25,000 |
|
| Strategic Fund |
(previously | named | 448,330 - - - (448,330) - |
| Investment Fund) | |||
| 550,997 - - (16,875) (442,884) 91,238 |
|||
| PREVIOUS YEAR | |||
| Fixed Asset Fund | Balance Gains and Balance 01-Jan-23 Losses Income Expenditure Transfers 31-Dec-23 £ £ £ £ £ £ 89,022 - - (16,628) 5,273 77,667 |
||
| Investment Property Fund | 470,000 - - - (470,000) - |
||
| Essential Repairs | Fund | - - - - 25,000 25,000 |
|
| Investment Fund | - - - - 448,330 448,330 |
||
| 559,022 - - (16,628) 8,603 550,997 |
The Fixed Asset Fund is represented by tangible fixed assets.
The Essential Repairs Fund (previously Essential Maintenance Fund). The PCC is required to undertake an inspection of the church building every five years. Plans for cyclical maintenance are then drawn up to maintain the building. The PCC sets aside money annually to cover the work required for the following year to cover such work and other essential repairs that, if not completed, would lead to further value loss. This does not cover any planned improvements. The Essential Repairs Fund was reinstated in 2023.
The Investment Property Fund relates to the property sold in 2023, which has been reinvested in a Cooperative savings account.
The Strategic Fund (previously named Investment Fund) relates to the sale proceeds of the Investment property. In 2024 the fund was reassigned into unrestricted non-designated funds.
The designated funds are represented by:
| Tangible Fixed Assets Cash at bank and in hand Current assets |
31-Dec-24 31-Dec-23 £ £ 66,238 77,667 25,000 473,330 - - 91,238 550,997 |
|---|---|
28
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
10. RESTRICTED FUNDS
| Gift Day Fund Campus Mission Initiative Fund Henry Smith Fund New Wine Raising Generations Fund Youth Fest Other Small Funds Just Sow Youth Bursary WDBF Grant for Lighting Gift Day Fund Campus Mission Initiative Fund Henry Smith Fund New Wine Raising Generations Fund Youth Fest Other Small Funds |
Balance Gains and Balance 01-Jan-24 Losses Income Expenditure Transfers 31-Dec-24 £ £ £ £ £ £ 2,528 - 18,837 (20,149) (969) 247 23,920 - 26,616 (23,721) (1,939) 24,876 719 - - (296) - 423 4,166 - 5,000 (2,516) - 6,650 1,593 - 10,584 (9,428) - 2,749 2,512 - - (947) - 1,565 - - 1,020 (555) - 465 - - 1,009 - - 1,009 - - 1,124 (1,124) - - 35,438 - 64,190 (58,736) (2,908) 37,984 Balance Gains and Balance 01-Jan-23 Losses Income Expenditure Transfers 31-Dec-23 £ £ £ £ £ £ 3,314 - 3,324 (3,575) (535) 2,528 5,669 - 27,253 (9,002) - 23,920 12,269 - - (9,611) (1,939) 719 - - 4,166 - - 4,166 661 - 932 - - 1,593 2,796 - - (284) - 2,512 24,709 - 35,675 (22,472) (2,474) 35,438 PREVIOUS YEAR CURRENT YEAR |
|---|---|
The restricted funds represents donations made for specific purposes monitored by the PCC to ensure that only relevant expenditure is charged against the fund.
The restricted funds are made up from three grants and restricted donations received by Highfield Church; the Henry Smith grant finished in 2023 and there is a trivial amount left to be used. The New Wine Raising Generations grant was awarded in 2024 to support growth of the citywide youth ministry. The JustSow Grant was awarded in 2024 to support Student Ministry. The restricted donations fund the Campus Missionary Initiative, which part funds our Student Outreach, and there is the remainder of the 2020 Advent Gift Day and other historical restricted funds.
The 2024 transfer between funds represents fixed assets purchased from restricted funds. The restriction placed on those funds was fulfilled once the asset was purchased, therefore allowing the asset to be transferred to general funds to be used for any charitable purpose.
The restricted funds are wholly represented by cash reserves, as detailed below:
| Tangible Fixed Assets Cash at bank and in hand Current assets |
31-Dec-24 31-Dec-23 £ £ - - 37,984 35,438 - - 37,984 35,438 |
|---|---|
29
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
11. ENDOWMENT FUNDS
| Church Fabric Upkeep Church Fabric Upkeep |
Balance Gains and Balance 01-Jan-24 Losses Income Expenditure Transfers 31-Dec-24 £ £ £ £ £ £ 16,502 378 458 - (458) 16,880 16,502 378 458 - (458) 16,880 Balance Gains and Balance 01-Jan-23 Losses Income Expenditure Transfers 31-Dec-23 £ £ £ £ £ £ 15,071 1,430 451 - (451) 16,502 15,071 1,430 451 - (451) 16,502 CURRENT YEAR PREVIOUS YEAR |
|---|---|
The Endowment fund capital must be maintained permanently; only dividend income arising from investment of the endowment may be used as funds based on the purpose for which the endowment was established, which is for church fabric upkeep.
The endowment funds are wholly represented by the COIF investment, as detailed below:
| Tangible Fixed Assets Cash at bank and in hand Current assets |
31-Dec-24 31-Dec-23 £ £ - - - - 16,880 16,502 16,880 16,502 |
|---|---|
30
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
12. RECONCILIATION OF FUNDS HELD AND MOVEMENT OF FUNDS
| CURRENT PERIOD | |||
|---|---|---|---|
| General Funds | Balance 01-Jan-24 Income Gain/Loss Expenditure Transfers £ £ £ £ £ 140,521 596,303 - (558,379) 446,250 |
Balance 31-Dec-24 £ 624,695 |
|
| Designated Funds | 550,997 - - (16,875) 442,884 - |
91,238 | |
| Endowment Funds | 16,502 458 378 - (458) |
16,880 | |
| Restricted Funds | 35,438 64,190 - (58,736) (2,908) |
37,984 | |
| 743,458 660,951 378 (633,990) - |
770,797 | ||
| PREVIOUS PERIOD | |||
| General Funds | Balance 01-Jan-23 Income Gain/Loss Expenditure Transfers £ £ £ £ £ 101,962 546,766 3,330 (505,859) (5,678) |
Balance 31-Dec-23 £ 140,521 |
|
| Designated Funds | 559,022 - - (16,628) 8,603 |
550,997 | |
| Endowment Funds | 15,071 451 1,430 - (451) |
16,502 | |
| Restricted Funds | 24,709 35,675 - (22,472) (2,474) |
35,438 | |
| 700,764 582,892 4,760 (544,959) - |
743,458 | ||
| 13. SUMMARY OF ASSETS BY FUND | |||
| Tangible fixed assets | General Designated Restricted Endowment TOTAL Fund Fund Fund Fund 2024 £ £ £ £ £ - 66,238 - - 66,238 |
||
| Investments | - - 16,880 - 16,880 |
||
| Debtors | 20,748 - - - 20,748 |
||
| Cash at bank and in hand | 652,789 25,000 - 37,984 715,773 |
||
| Creditors < 1 year | (48,842) - - - 48,842 - |
||
| Creditors > 1 year | - - - - - |
||
| 624,695 91,238 16,880 37,984 770,797 |
|||
| Tangible fixed assets | General Designated Restricted Endowment TOTAL Fund Fund Fund Fund 2023 £ £ £ £ £ - 77,667 - - 77,667 |
||
| Investment Property | - - - - - |
||
| Investments | - - - 16,502 16,502 |
||
| Debtors | 4,839 - - - 4,839 |
||
| Cash at bank and in hand | 154,828 473,330 35,438 - 663,596 |
||
| Creditors < 1 year | - | 19,146 - - - 19,146 - |
|
| Creditors > 1 year | - - - - - |
||
| 140,521 550,997 35,438 16,502 743,458 |
31
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
14. STAFF COSTS, PAYMENTS TO TRUSTEES AND KEY MANAGEMENT PERSONNEL
(a) Employees paid via Payroll:
| Gross Wages and Salaries Employers NI (net of annual allowance) Life Cover Employers Pension Contributions Statutory Pay Recovered Staff who were engaged in each of the following activities (average numbers): Activities in furtherance of organisation's objects |
31-Dec-24 31-Dec-23 £ £ 247,117 200,778 13,454 10,232 1,018 895 22,505 18,729 (5,774) (3,497) 278,320 227,137 31-Dec-24 31-Dec-23 TOTAL TOTAL 16 18 |
|---|---|
Employed staff are paid via through a payroll scheme operated by the PCC. No employees received emoluments in excess of £60,000 (2023: None).
(Please note, prior to 2023, only fully employed staff were included in this figure, but from 2023, all employed individuals, whether full time or part time who are registered with HMRC as on Highfield Church’s payroll have been included).
(b) Self Employed Staff:
There were no self employed staff in 2024 or 2023.
(c) Key Management Personnel
The charity's key management personnel is considered to be the Trustees. One Trustee received remuneration totalling £1,518 under a short term employment contract to cover a period of staff shortage. Therefore the total amount paid to key management personnel (including employers national insurance and employers pension contributions) was £1,518.
Four members of clergy were paid by the Church Commissioners and not the PCC. The Common Mission Fund paid to the diocese was in part to cover these costs. One of these posts is funded by the PCC and has been included in the above figures. Two clergy gave their time as non-stipendiary clergy, for no remuneration by either the Church Commissioners or PCC.
(d) Transactions with PCC members and Trustees
There were trustees' expenses paid for the year ended 31 December 2024 plus those expenses which were reimbursed to trustees for expenditure incurred on behalf of the charity. Other expenses paid to Trustees included travel, subsistence, accommodation, entertainment and other related expenses. The total amount paid to Trustees in 2024 was £13,482. Of this amount, reimbursement for charitable expenditure incurred totalled £3,490. (2023: £2,410). Expenses were paid to 6 Trustees and totalled £6,465 (2023: £6,348) - see further breakdown below. One Trustee received £3,526 in sabbatical payments for their role as Clergy (not their role as Trustee) via a distribution of restricted giving for that purpose. Trustee A Finney received salary payments totalling £1,518 (2023: £0) to cover an interim period when a staff member left. The PCC relies upon the provisions contained in the Charities Act 2011 to make these payments, which were paid under a short term temporary contract of employment.
32
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
14. STAFF COSTS, PAYMENTS TO TRUSTEES AND KEY MANAGEMENT PERSONNEL
(d) Transactions with PCC members and Trustees
Expenses paid to Trustees:
| P Moss E Roberts M Archer S Coleman S Archer Mobley Engineering * Total |
Repairs & Mileage Travel Phone & Contribution Printing TOTAL Maintenance & Subsist. Internet to costs Postage etc 2024 £ £ £ £ £ £ £ - - 127 - - - 127 - - - 231 - - 231 310 575 371 637 57 377 2,327 - 30 142 110 - - 282 - 18 - - 750 - 768 2,730 - - - - - 2,730 3,040 623 640 978 807 377 6,465 |
|---|---|
- Trustee B Mobley is also a Director of Mobley Engineering Solutions Limited, which provided grounds repairs and building maintenance services to the PCC during 2024.
The aggregate total amount of donations received from Trustees is as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Total donations before Gift Aid | 71,626 |
48,313 |
Of the above donations received from Trustees totalling £71,626 in 2024, there were no conditions associated with donations from the Trustees which totalled £66,566. There were restrictions on £5,060 which were related to donations to Mike Archer’s Sabbatical Fund, as well as donations to self-funded events such as Youth and Student Weekends Away.
(e) Transactions with Related Parties
The following relatives of trustees received payment for their services or as employees of the PCC:
S Archer is employed by the Diocese in an Ordained position as Associate Minister. The cost of this employment is covered by the PCC who pay the Diocese. The charity pays the Diocese who then pay S Archer. S Archer is a Trustee, due to her Ordained position and also the spouse of the chair of Trustees. The total paid covering salary, pension and national insurance contributions in the applicable period for 2024 was £32,058 (2023: £18,603)
The PCC relies on the provisions contained in section 3a of its governing document to pay a connected person.
PCC members are not involved in decisions concerning those with whom they are connected.
33
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
15. MATERIAL LEGACIES
The PCC are not aware of any material legacies or distributions becoming payable within the next financial year.
16. RESERVES POLICY AND RISK ASSESSMENT
Reserves are unrestricted funds which the PCC has set aside for the future. The purpose of holding reserves is so that the Parochial Church Council of Highfield Church, Southampton is able to continue to meet its financial obligations in a situation where unforeseen shortfalls arise, until alternative plans can be put in place.
The PCC has identified the key risks and assessed the amounts prudent to set against those risks. The Reserves policy is set out in the Trustees Annual Report.
17. PUBLIC BENEFIT
The PCC acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how this has been achieved this are provided in the Trustees Annual Report. The PCC Members confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
18. EVENTS AFTER THE END OF THE REPORTING PERIOD
There are no events that require disclosure.
19. OTHER CAPITAL COMMITMENTS
The annual commitments under non-cancelling operating leases and capital commitments for the next financial year are as follows:
Photocopier leasing costs £210 per quarter.
34
Parochial Church Council of Highfield Church, Southampton
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2024
20. PENSIONS
Highfield Parochial Church Council participates in the Pension Builder Scheme section of CWPF for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers.
CWPF has two sections:
-
the Defined Benefits Scheme
-
the Pension Builder Scheme, which has two subsections;
-
a. a deferred annuity section known as Pension Builder Classic, and,
-
b. a cash balance section known as Pension Builder 2014.
Pension Builder Scheme
Both sections of the Pension Builder Scheme are classed as defined benefit schemes.
Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.
Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The employers pensions costs charged to the SoFA in the year are the contributions payable (2024: £22,505, 2023 £18,729).
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2022. The next valuation is due as at 31 December 2025.
For the Pension Builder Classic section, the valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2025, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 2.7% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2024. There is no requirement for deficit payments at the current time.
For the Pension Builder 2014 section, the valuation revealed a surplus of £8.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, Highfield Parochial Church Council could become responsible for paying a share of the failed employer's pension liabilities.
The PCC had 9 active members in the Pension Builder Classic section at 31 December 2024 {2023: 9).
35
Parochial Church Council of Highfield Church, Southampton
PRIOR YEAR
STATEMENT OF FINANCIAL ACTIVITIES AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31ST DECEMBER 2023
| Notes Income and endowments from: Donations and Legacies 2a Charitable Activities 2b Investment Income 2c Other Income 2d TOTAL Expenditure on: Charitable Activities 3a Raising Funds 3b TOTAL NET INCOME/(EXPENDITURE) BEFORE INVESTMENTS GAINS/(LOSSES) Gains/(losses) on 5b investments NET INCOME/(EXPENDITURE) Transfer Between Funds 10 Net movement in funds Reconciliation of funds: Total Funds Brought Forward Total Funds Carried Forward |
Unrestricted Designated Endowment Restricted TOTAL TOTAL Funds Funds Funds Funds 2023 2022 £ £ £ £ £ £ 435,544 - - 34,743 470,287 430,800 108,822 - - 932 109,754 85,483 2,400 - 451 - 2,851 12,045 - - - - - - - 546,766 - 451 35,675 582,892 528,328 505,859 16,628 - 22,472 544,959 592,310 - - - - - - 505,859 16,628 - 22,472 544,959 592,310 40,907 (16,628) 451 13,203 37,933 (63,982) 3,330 - 1,431 - 4,761 (2,024) 44,237 (16,628) 1,882 13,203 42,694 (66,006) (5,678) 8,603 (451) (2,474) - - 38,559 (8,025) 1,431 10,729 42,694 (66,006) 101,962 559,022 15,071 24,709 700,764 766,770 140,521 550,997 16,502 35,438 743,458 700,764 |
|---|---|
36