REGISTERED CHARITY NUMBER: 1131770 

Report of The Trustees and Financial Statements for the Year Ended 31 December 2025 

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 2025|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|9|
|Financial Review|10|
|Summary of Financial Statements for 5 years|14|
|Statement of Financial Activities and Statement of Total Recognised Gains and Losses|15|
|Balance Sheet|16|
|Statement of Cash Flows|17|
|Notes to the Financial Statements|18|
|Prior Year - Statement of Financial Activities and Statement of Total Recognised Gains and Losses|33|
|Independent Examination to the Trustees of|34|
|The Parochial Church Council of the Ecclesiastical Parish of Highfield, Southampton||



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Parochial Church Council of Highfield Church, Southampton 

## **Report of The Trustees for the year ended 31 December 2025** 

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2025. 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 2025, the following served as members of the PCC: 

|Alan Finney|From Oct 2020 (2ndterm)|
|---|---|
|Alasdair Douglas|From Oct 2020 (2ndterm)|
|Ben Mobley|From April 2024 (1stterm)|
|Caroline Hutchings|From April 2022 (2ndterm)|
|David Tozer|From April 2021 (2ndterm)|
|Hannah Stanley|Deanery Synod rep from April 2024 (1stterm)|
|Jacob Racklyeft|Co-opted from April 2024 and re-appointed in May 2025|
|Keith Fox|Clergy|
|Lisa Roberts|From Oct 2020 (2ndterm)|
|Mary Grasmeder|Deanery Synod rep from May 2025 (1stterm)|
|Max Davies|From April 2021 (2ndterm)|
|Mike Archer|Clergy|
|Penny Cox|From May 2025 (1stterm)|
|Pete Marston|From April 2024 (1stterm)|
|Phil Hewitt|Churchwarden|
|Polly Cross|From April 2022 (2ndterm)|
|Richard Venable|Churchwarden|
|Rob Heather|From April 2023 (1stterm)|
|Sarah Archer|Clergy|
|Sue Coleman|Clergy|
|Zoe Norton|From Oct 2020 (2ndterm)|



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. 

Of those detailed above, Hannah Stanley and Mary Grasmeder are our elected Deanery Synod representatives. 

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Parochial Church Council of Highfield Church, Southampton 

Earlier during the 2025 year, others served on the PCC as follows: 

Becky Proctor Stepped down as Churchwarden at the 2025 APCM Christine Sinclair Stepped down as Deanery Synod rep at the 2025 APCM Daisy Wood Stepped down from the PCC at the 2025 APCM Erica Roberts Left the parish in May 2025, stepping down from the PCC as clergy 

**Independent Examiner:** Independent Examiners Ltd The Grain Store, Hills Barns Appledram Lane Chichester PO20 7EG 

**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 independent examination or audit. This team is currently led by Philip Moss 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 and may be employed as Service Assistants to help with occasional services such as weddings and funerals. Each Trustee employed in this way is on a zero hour contract and has been approved by the Trustees. Trustees who act as Service Assistants are paid the same rates as other (nonTrustee) Service Assistants and do not work more than any Service Assistant. Related party transactions are disclosed in the financial statements, including any payments for Service Assistants who are Trustees. 

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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 these within 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  (March  2025),  the  PCC  reviewed  our Parish Safeguarding Policy Statement, responding to domestic violence and ex-offender’s (March 2025) 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). We have introduced a new safeguarding referral form which enables any church member to quickly raise a concern and record the appropriate information for the PSO. In addition to this, referrals can be made via the safeguarding email account and the phone number. This church year (April 25-26) we have logged 17 individual safeguarding incidents, though each separate concern has a number of separate logged concerns either via the online form or via the safeguarding email or phone. There were no Serious Incidents. Concerns range from mental health problems to self-harm, possible neglect as well as occasional matters requiring police and diocese 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 2025, 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 2026. 

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 the Parish Safeguarding Officer, 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. 

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Parochial Church Council of Highfield Church, Southampton 

Rachele Newman is our Parish Safeguarding Officer. Should you have any concerns or would like advice, please do contact the Parish Safeguarding Officer 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. 

## **GDPR** 

The Parochial Church Council oversaw measures to ensure compliance with General Data Protection Regulations of 2018 (GDPR). 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 Christ Church, 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** 

In 2025 the PCC met a total of 8 times, and the focus of our business varied widely as different needs came up, with items both large and small. Important discussions that stand out as highlights will be described in more detail in later sections of this report, including recruitment for the Student Pastor role (see the Human Resources section), prioritising building development projects (to direct the Buildings team, see their section), and reviewing and approving the budget for the coming year (see the Finance & Income section). 

Highfield Church is committed to the safeguarding, care and nurture of everyone within our church community, and the PCC has had an increased focus over recent years on this important area, ensuring that everyone in the community is kept safe whilst engaged with the church’s activities and services. More detail on Safeguarding can be found in the Operations section of this report, but prompted both by the Parish Safeguarding Dashboard and by a policy review within the Archdeacon’s visitation, the PCC spent time over several meetings in reviewing and approving various policies and on-going risk assessments. We also considered and approved some ad hoc paid roles, where candidates were either trustees (PCC members) or had strong connections with trustees, which is only appropriate if a specific set of criteria are checked and met. 

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Parochial Church Council of Highfield Church, Southampton 

The PCC is grateful to four members of our church who applied to be Foundation Governors of Highfield Primary School over the year, nominations for which we were happy to approve and commend to the diocese. We recognise the importance that the church and our Foundation Governors play in ensuring the continued Christian ethos of our linked school, and encourage you to pray for the board of governors as they seek God’s will for the school. 

We have enjoyed holding our PCC meetings in the church building, which has given us opportunity when appropriate both to use the space for prayer and worship alongside our business discussions, and also to see in person some of the subjects of our discussion. The latter included works to improve the storage facilities in the cupboard behind the stage, the redecoration and improvements of the vestry, and certain items of old unused furniture that we agreed could be disposed of appropriately. Finally, we had several discussions later in the year around whether to replace the church chairs, including trialling several possible models to offer a shortlist to the congregation for a wider set of views. The new lighter chairs should improve working conditions for staff and volunteers who move them several times per week, and the small storage space they require will free up the chancel area during the week, restoring it for use as a worship or prayer space. The final decision and work to implement this project will continue in 2026. 

A big thank you from me to every PCC member – a voluntary role that requires time, wisdom and patience. 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 2026 and beyond. _Penny Cox, PCC Secretary_ 

## **ELECTORAL ROLL AND CHURCH ATTENDANCE** 

At the time of reporting for the APCM, there are 199 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 four Sundays in October 2025, was 282 adults and 47 children under 16 years of age (comparable figures for October 2024 were 271 adults and 36 children). 

Attendance at YTH CHRCH calculated as an average of the two Sundays they met separately in October 2025, was 9 adults and 24 children under 16 years of age (comparable figures for October 2024 were 13 adults and 23 children). 

Mid-week church attendance, calculated as an average of the five Wednesdays in October 2025 was 14 adults (compared with 16 in 2024). There were three school services during the month. _Penny Cox, PCC Secretary_ 

## **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 to ensure strong accountability and governance so that the Church is a great employer, developing people and offering opportunity to achieve their full potential. The group 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.” 

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Parochial Church Council of Highfield Church, Southampton 

The Human Resources Team brings experience and skills in 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 drafting job descriptions, contracts and policies, participate in recruitment processes and scrutinise processes to ensure that we are a good employer. Much of this work is carried out quietly in the background. 

It remains an enormous privilege to serve in this role and to support our wonderful clergy and staff team whom we are so blessed with. Our focus continues to be on seeking to discern God’s leading and align with the Church’s Discipleship Process and our vision of Encountering God, Growing Together and Seeking the Kingdom. Although the year involved further recruitment and significant background work, 2025 brought greater stability within the staff team, enabling us to begin refocusing on project work. I am deeply grateful for the commitment of the Human Resources Team of Rob Heather, Abi Baker and Becky Hoddy, as well as Kelly Worthington and Mike Archer. 

## **Staff Changes and Updates in 2025** 

- We said goodbye to Krystyna England as Creative Lead in June, following completion of her masters degree. 

- Daphne Babbage was appointed as Creative and Digital Assistant in a part time capacity in June, alongside her existing part time Youth Worker role, which has been extended to August 2026. 

- Ed and Hannah Davey were appointed as Student Workers in June on a 50:50 job share arrangement. Hannah commenced maternity leave in August and Ed is covering the full time role during this period. 

- Tim Daulby’s appointment  as  Campus  Pastor, on  a  Ministry Partnership Development basis fundraising his salary, was formalised on a permanent basis in July. 

- Lucy Ramsden was appointed as a part time Theology Teacher in September on a fixed term basis to July 2026, supporting the leadership pipeline, including the Timothy Year course. 

## **Key Volunteer Changes and Updates in 2025** 

- Becky Proctor stood down as Churchwarden and Richard Venable was appointed at the APCM in May. Our sincere thanks to Becky for her dedication and service in this volunteer role. 

- We launched the Timothy Year course, welcoming four participants in September. Placements are as follows: 

- Madeleine Smith – Kids and Families Ministry 

- Joe Hughes – Youth Ministry (with Worship) 

- Becca Merritt – Campus Mission and Student Ministry 

- Luke Wilder – Adult Ministry 

- Grateful thanks go to the Kids volunteer teams who covered Hemi Crane’s leave of absence during the Autumn – we are immensely thankful for all you do. 

We could not fulfil our mission without the amazing support of our many wonderful volunteers. Your time, energy and commitment are vital to the life and ministry of the Church and our heartfelt thanks go 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 explore new opportunities to volunteer please speak to me, or any member of the staff team – we would be delighted to have an informal conversation. _Polly Cross, Human Resources Team Lead_ 

## **BUILDINGS RESOURCE REPORT** 

The main projects completed in 2025 were: 

- New Fire  Escape for  Church  Centre  first  floor – after  a lengthy  planning  process,  this finally proceeded in August. Further work has been identified to bring all fire doors in the Centre up to current regulations. 

- Vestry refurbishment – with faculty permission to dispose of old furniture, the vestry has been refurbished as a multi-purpose room. 

- Swift Bird boxes – working with the climate care group, faculty permission was obtained and swift bird boxes have been installed in the church tower, including the sound for attracting the birds. Other bird 

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Parochial Church Council of Highfield Church, Southampton 

boxes have been installed in churchyard and blue tits have been nesting. 

- Heating in  the  Church  Centre – some repairs were  needed, and  new radiators were installed in the hall to increase the heating capacity. 

- Eden Room refurbishment – the Church Centre lower room has been extensively refurbished with new flooring, redecoration, a new kitchenette and new furnishings. 

Also, urgent repairs were needed to stop plaster falling from the church inner west wall, the centre oven was repaired, office computers were upgraded, an EICR was commissioned and improvements made including replacement of the main centre distribution board and centre alarm controller. 

The Quinquennial Survey was carried out in March 2024, but the report was not received until March 2025. Quotes have been obtained for the more urgent repair work which will be carried out in 2026. 

The Buildings Group are very pleased to have the support of a willing group of volunteers, whose work in 2025 included church door repainting, an improved mechanism for the west window sunscreen, a fibre optic link between church and centre, a new monitor for the organist, and generally fixing things! _Phil Hewitt, Churchwarden_ 

## **Climate Action Group** 

The Climate Action Group coordinates the church’s activities relating to creation care and assists the PCC to construct a road map for becoming carbon neutral by 2030. We encourage people to encounter God through the wonders of his creation, to grow as disciples fulfilling our responsibilities to care for all of creation and to seek his Kingdom through caring for our neighbours across the world, who are affected by climate injustice. In 2025, with help from Steve Braithwaite we have been exploring how to replace our gas boilers, and now have some ideas for installing heat pumps. Expect to hear much more in 2026. We have continued to explore the feasibility of installing solar panels on the church roofs and should make progress together with heat pumps in the coming year. 

Eight people took part in the annual National Churches Count for Nature in June. A full list of all the interesting things that we found is on the creation care blog. A leaf bin has been installed (next to the shed in the churchyard). This is not to be used for plastics or food. 

Our growth as disciples in creation care is reflected in the Church’s support for A Rocha as one of our mission partners. We have worked through the A Rocha EcoChurch survey on ‘Worship and Teaching’, and we have work to do on integrating our commitment to creation care within our worship and teaching. The October Sunday afternoon ‘Big Questions’ session considered the issue of climate change and our Christian response. 

We publish a creation care blog on the church website (https://www.highfield.church/creation-care) that provides some information on progress, highlights important climate issues and encourages lighter living, so do follow our progress there or get in touch if you are passionate about climate care and would like to get involved. 

_Keith Fox, Curate_ 

## **FINANCIAL AND INCOME REVIEW** 

In December 2024, the PCC agreed to make planned use of a portion of the church’s reserves during 2025. This enabled us to invest in our buildings, facilities, and ministry, while remaining within the limits of our Reserves Policy. The resulting deficit for the year was planned and reflects a deliberate decision to invest in ministry and facilities, rather than a decline in the church’s underlying financial health or giving. 

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 2025 and to look ahead with us as we faithfully steward the resources God has entrusted to us. 

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Parochial Church Council of Highfield Church, Southampton 

## **Results for the year – Income and Expenditure** 

The financial results for the year, covering both unrestricted and restricted income and expenditure, as well as any revaluations, resulted in a deficit of **£72,160** (2024: surplus of £27,336). 

Our **income** was a total of **£604,346** (2024: £661,329), 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 over 70% of our income, increasing further when other donations are included. PGS was consistent across the year, with a very small fluctuation positive and negative between months. It was slightly up over the whole of 2025, compared with 2024. 

The **Church Centre** continues to play an important role, both financially and in serving the wider community. While it generates significant income, it also carries operating and maintenance costs, meaning it broadly breaks even over the year. 

**Grant funding** remains a challenge, though we successfully secured a repeat grant in 2025 from the New Wine Trust for a further **£5,000** to support Youth Ministry outreach. 

Overall, income decreased by circa 9%, which was not unexpected – income came in exactly as we budgeted, as we were expecting a decrease in centre income and there was a significant change in Restricted Income. 

Turning to our 2025 expenditure, we continued to prioritise responsible stewardship of our costs and overheads, ensuring our staff team have the resources and support needed to sustain and grow our shared mission. Careful management of staffing costs has enabled us to operate effectively while maintaining our commitment to the church’s priorities. Staff employment costs **£302,878** (2024: £278,320) and remain our biggest area of expenditure. 

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 **£124,194** (2024: £111,586) and it is great to be part of our wider church family and help those parishes less fortunate than us. 

The Mission Partnership Team had a significant budget in 2025 and the PCC, on behalf of the wider church, was able to donate **£52,896** (including some trivial admin costs) (2024: £42,968). This represents around 11% of our total donated and investment income for the year. 

## **Reserves and Strategic Financial Planning** 

At the end of 2025, the PCC’s financial position continues to be healthy, with total net assets of **£698,637** (2024: £770,797). 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, the General Fund is maintained at £100,000, with any surplus transferred to or from the Strategic Fund as appropriate. 

Our unrestricted funds at the end of 2025 are **£559,602** (2024: £624,695), with £100,000 in the General Fund (2024: £100,000) and £459,602 in the Strategic Fund (2024: £524,695). 

The church’s other funds are designated or restricted across key areas to ensure financial sustainability and responsible stewardship and adherence to charity law: 

- **Fixed Assets (£76,836)** – This includes church-owned property and other tangible assets. 

- **Essential Maintenance Fund (£25,000)** – Set aside to address urgent maintenance and repairs to church facilities. 

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Parochial Church Council of Highfield Church, Southampton 

- **Endowment Fund (£16,205)** – Funds held in long-term investments, primarily through the Diocese. The use of this fund is restricted and the dividends are used for church upkeep. 

- **Restricted Funds (£20,994)** – 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. 

## **Stewardship, Cost Management and Responsible Use of Donations** 

At Highfield Church, we recognise that every financial gift is an expression of faith and trust in God’s provision. The PCC takes this responsibility seriously and is committed to using all resources wisely, transparently, and in a way that best supports the church’s mission and ministry. 

Our budgeting and financial management processes are designed to ensure that donations are directed towards core operations, ministry, staffing, and outreach, while also maintaining the buildings and facilities entrusted to us. Decisions on spending are made carefully and prayerfully, balancing the day-to-day costs of running the church with opportunities to grow and develop our ministry. 

We continue to take a disciplined approach to cost management. Regular financial reviews allow the PCC to monitor income and expenditure throughout the year, adjust plans where necessary, and ensure that spending remains aligned with the church’s priorities and available resources. This includes making effective use of assets such as the Church Centre, which both serves the wider community and contributes income to support ministry. 

The PCC is also committed to ethical and sustainable financial practices. This includes banking with institutions that align with our values, managing investments responsibly, and supporting mission partners and social action projects locally, nationally, and internationally. 

Through careful financial planning, responsible stewardship, and ongoing encouragement of regular giving, the PCC seeks to ensure that every pound given is used well — sustaining the life of the church today while enabling future growth and mission. 

## **Reserves Policy** 

The reserves policy, established in 2019, states that unrestricted general funds should not fall below three months of forecast unfunded employment costs for more than two consecutive quarters. In addition, any 12month forward forecast should not project funds falling below one month of those costs. 

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. 

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Parochial Church Council of Highfield Church, Southampton 

## **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 Examiners were appointed in 2024 and are Independent Examiners (Registered in England CRN 3221546), The Grain Store, Hills Barns, Appledram Lane South, Chichester, PO20 7EG. 

Approved by the Parochial Church Council on 13th April 2026 

and signed on their behalf by: 


M Archer Vicar and Chair of Trustees 

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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. 

|**RESULT FOR THE YEAR**|**2025**|**2024**|**2023**|**2022**|**2021**|
|---|---|---|---|---|---|
||£k|£k|£k|£k|£k|
|Income from members includingtax|498|514|459|453|417|
|Gift days & RetiringCollections|20|46|34|10|-|
|Income fromparish fees andgrants|9|11|7|11|82|
|Church Centre and other departments|67|84|79|43|42|
|Income from investments and interest|10|6|3|12|14|
|**Total Income**|**604**|**661**|**582**|**528**|**555**|
|Mission Givingand Donations|53|43|44|56|48|
|Diocesan Parish Share|124|112|120|125|120|
|Staff Costs|314|287|227|207|213|
|Church activities|21|20|14|12|10|
|Church maintenance and houses|31|14|22|67|23|
|Cost of Church Centre and departments|96|120|75|86|48|
|Church administration|18|21|26|23|19|
|Depreciation|18|17|17|16|20|
|**Total Expenditure**|**675**|**634**|**546**|**592**|**501**|
|Net Surplus/(Deficit)|-71|27|37|-64|54|
|Investmentgains/losses & b/f adjustments|-1|1|5|-2|22|
|**Increase/ (Decrease) in Funds**|**-72**|**28**|**42**|**-66**|**76**|
|Funds at start atyear|771|743|701|767|691|
|**Funds at end ofyear**|**699**|**771**|**743**|**701**|**767**|



|**FINANCIAL POSITION**|**2025**|**2024**|**2023**|**2022**|**2021**|
|---|---|---|---|---|---|
||£k|£k|£k|£k|£k|
|**PCC NET ASSETS**||||||
|Fixed Assets|77|66|77|559|558|
|Investments|16|17|17|15|17|
|Bank balances,debtors & creditors|606|688|649|127|192|
|**Total Net Assets**|**699**|**771**|**743**|**701**|**767**|
|**PCC FUNDS**||||||
|Premises and fixed assets|77|66|78|559|558|
|Endowment and Restricted Funds|37|55|52|40|58|
|Strategic Funds|460|525|448|0|0|
|Essential Maintenance Fund|25|25|25|0|30|
|General Fund|100|100|140|102|121|
|**Total Funds**|**699**|**771**|**743**|**701**|**767**|



14 



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 2025** 

|Notes<br>**Income and endowments from:**<br>Donations and Legacies<br>2a<br>Charitable Activities<br>2b<br>Investment Income<br>2c<br>Other Income<br>2d<br>**TOTAL**<br>**Expenditure on:**<br>Charitable Activities<br>3a<br>Raising Funds<br>3b<br>**TOTAL**<br>**NET INCOME/(EXPENDITURE)**<br>**BEFORE INVESTMENTS**<br>**GAINS/(LOSSES)**<br>Gains/(losses) on<br>5c<br>investments<br>**NET INCOME/(EXPENDITURE)**<br>Transfer Between Funds<br>9<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total Funds Brought Forward<br>**Total Funds Carried Forward**|Unrestricted<br>Designated Endowment<br>Restricted<br>TOTAL<br>TOTAL<br>Funds<br>Funds<br>Funds<br>Funds<br>2025<br>2024<br>£<br>£<br>£<br>£<br>£<br>£<br>464,941<br>-<br>-<br>25,012<br>489,953<br>540,160<br>93,602<br>-<br>-<br>10,443<br>104,045<br>114,807<br>10,348<br>-<br>-<br>-<br>10,348<br>5,984<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|
||**568,891**<br>**-**<br>**-**<br>**35,455**<br>**604,346**<br>**660,951**|
||605,634<br>17,429<br>-<br>52,445<br>675,508<br>632,687<br>323<br>-<br>-<br>-<br>323<br>1,303|
||**605,957**<br>**17,429**<br>**-**<br>**52,445**<br>**675,831**<br>**633,990**|
||**(37,066)**<br>**(17,429)**<br>**-**<br>**(16,990)**<br>**(71,485)**<br>**26,961**<br>-<br>-<br>(675)<br>-<br>(675)<br>378<br>**(37,066)**<br>**(17,429)**<br>**(675)**<br>**(16,990)**<br>**(72,160)**<br>**27,339**<br>(28,027)<br>28,027<br>-<br>-<br>-<br>-<br>**(65,093)**<br>**10,598**<br>**(675)**<br>**(16,990)**<br>**(72,160)**<br>**27,339**<br>624,695<br>91,238<br>16,880<br>37,984<br>770,797<br>743,458|
||**559,602**<br>**101,836**<br>**16,205**<br>**20,994**<br>**698,637**<br>**770,797**|



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 18 to 32 form part of these financial statements. 

15 



Parochial Church Council of Highfield Church, Southampton 

## **BALANCE SHEET AS AT 31ST DECEMBER 2025** 

|Notes<br>**Fixed Assets**<br>Tangible assets<br>5(a)<br>Investment assets<br>5(c)<br>**Current Assets**<br>Debtors<br>6<br>Cash at bank<br>7<br>**Total Current Assets**<br>**Creditors:**amounts<br>falling due within one year<br>8<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS**less curren t liabilitie<br>**NET ASSETS**<br>**Funds of the Charity**<br>General Unrestricted Funds<br>Designated Funds<br>9<br>Restricted Funds<br>10<br>Endowment Fund<br>11<br>**Total Funds**|Unrestricted<br>Designated<br>Endowment<br>Restricted<br>**31-Dec-25 31-Dec-24**<br>Funds<br>Funds<br>Funds<br>Funds<br>**Total**<br>**Total**<br>£<br>£<br>£<br>£<br>**£**<br>**£**<br>-<br>76,836<br>-<br>-<br>76,836<br>66,238<br>-<br>-<br>16,205<br>-<br>16,205<br>16,880<br>24,893<br>-<br>-<br>-<br>24,893<br>20,748<br>569,241<br>25,000<br>-<br>20,994<br>615,235<br>715,773|
|---|---|
||**594,134**<br>**25,000**<br>**-**<br>**20,994**<br>**640,128**<br>**736,521**|
||34,532<br>-<br>-<br>-<br>34,532<br>48,842<br>559,602<br>25,000<br>-<br>20,994<br>605,596<br>687,679|
||<br>**559,602**<br>**101,836**<br>**16,205**<br>**20,994**<br>**698,637**<br>**770,797**|
||**559,602**<br>**101,836**<br>**16,205**<br>**20,994**<br>**698,637**<br>**770,797**|
||559,602<br>-<br>-<br>-<br>559,602<br>624,695<br>-<br>101,836<br>-<br>-<br>101,836<br>91,238<br>-<br>-<br>-<br>20,994<br>20,994<br>37,984<br>-<br>-<br>16,205<br>-<br>16,205<br>16,880|
||**559,602**<br>**101,836**<br>**16,205**<br>**20,994**<br>**698,637**<br>**770,797**|



Signed on behalf of the Trustees and PCC Members by: 


….............................................. 


….................................................. 

16/04/2026 Date ............................................... 2026 

16 



Parochial Church Council of Highfield Church, Southampton 

## **STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31ST DECEMBER 2025** 

|2025<br>£<br>**Cash used in operating activities**<br>(a)<br>**(82,859)**<br>**Cash used from investing activities**<br>Interest income<br>10,348<br>Purchase of tangible fixed assets<br>(28,027)<br>Disposal of investment assets<br>-<br>**Cash provided by (used in)**<br>**investing activities**<br>(17,679)<br>**Cash flows from financing activities**<br>Introduction/(Repayment) of long term borrowing<br>-<br>**Cash used in financing activities**<br>-<br>Increase/(decrease) in cash and<br>cash equivalents in the year<br>(100,538)<br>Cash and cash equivalents at the<br>start of the year<br>715,773<br>**TOTAL cash and cash equivalents**<br>**at the end of the year**<br>(b)<br>**615,235**<br>**(a) Reconciliation of net movement in funds to net cash flow from operating activities**<br>2025<br>£<br>Net movement in funds<br>(71,485)<br>Add back depreciation charge<br>17,429<br>Deduct interest income shown in investing activities<br>(10,348)<br>Decrease/(increase) in debtors<br>(4,145)<br>Increase/(decrease) in creditors<br>(14,310)<br>**Net cash used in operating activities**<br>**(82,859)**<br>**(b) Analysis of cash and cash equivalents**<br>2025<br>Cash at bank and in hand<br>£<br>615,235<br>**Total cash and cash equivalents**<br>**615,235**|2024<br>£|
|---|---|
||**52,097**|
||5,526<br>(5,446)<br>-|
||80|
||-|
||-|
|||
||52,177|
||663,596|
||**715,773**|
||2024<br>£<br>26,961<br>16,875<br>(5,526)<br>(15,909)<br>29,696|
||**52,097**|
||2024<br>£<br>715,773|
||**715,773**|



17 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **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** 

Unrestricted funds are available at the discretion of the PCC. 

Designated funds are for specific expenditure on, and the financing of, property and fixed assets. They include amounts that are designated for maintenance and depreciation. 

Restricted funds are in respect of: 

a. Group activities subsidised by the people involved and run at no extra cost to the PCC general fund. b. Gifts to specific causes. 

Endowment funds comprise the Vicar and Church Warden’s Fabric Fund, from which the income is to be used for the church fabric upkeep. 

There were two major capital additions in 2025 – the replacement of the Church Centre fire escape (£21,000) and the refurbishment  of  the  Eden  Room  (c.  £1,500).  Additions  of  £10,598 (2024:  £5,272)  have been allocated to designated funds. 

18 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **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 2025 or 2024. 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 2025 up to 8 employees of the PCC were enrolled in a defined benefit workplace pension scheme. Employer’s pension contributions were £21,577 in 2025 (2024: up to 10 employees, £22,505). 

19 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **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. 

20 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

|**2. INCOME FROM:**||Unrestricted|Designated|Restricted|TOTAL|TOTAL|
|---|---|---|---|---|---|---|
||Notes|Funds|Funds|Funds|2025|2024|
|||£|£|£|£|£|
|**a) Donations and Legacies**|||||||
|Planned Gifts:|||||||
|Giving under Gift Aid||347,410|-|-|347,410|334,040|
|Tax Recoverable||83,441|-|-|83,441|88,552|
|Other tax efficient giving||11,296|-|20,012|31,308|57,857|
|Non gift aidable giving||7,774|-|-|7,774|9,053|
|Gift days and retiring collections||15,020|-|-|15,020|18,534|
|Legacies||-|-|-|-|25,000|
|Grant Income||-|-|5,000|5,000|7,124|
|||**464,941**|**-**|**25,012**|**489,953**|**540,160**|
|**b) Charitable Activities**|||||||
|Church Centre lettings||67,153|-|-|67,153|83,538|
|Discipleship Ministry Income||3,340|-|-|3,340|-|
|Self-funded activities income||19,062|-|10,443|29,505|27,372|
|Parish Fees||4,047|-|-|4,047|3,897|
|||**93,602**|**-**|**10,443**|**104,045**|**114,807**|
|**c) Investments**|||||||
|Dividends and Bank Interest||10,348|-|-|10,348|5,984|
|||**10,348**|**-**|**-**|**10,348**|**5,984**|
|**d) Other Income**|||||||
|Other Income||-|-|-|-|-|
|||**-**|**-**|**-**|**-**|**-**|



21 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **3. EXPENDITURE ON:** 

|**Church Activities:**<br>Church running costs and maintenance:<br>**Governance and Support:**<br>Notes<br>**a) Charitable Activities**<br>**Direct costs**<br>**Missionary and Charitable giving:**<br>Mission partners - Church overseas<br>Mission partners - Home missions<br>Other gifts and donations<br>Diocesan Common Mission Fund<br>Clergy expenses<br>Church services<br>Church ministries<br>Training costs<br>Utilities, Water and Rates<br>Estate Improvements<br>Insurance<br>Cleaning costs<br>Repairs and Maintenance<br>Service contracts<br>Sundries<br>Alpha and Outreach<br>Office costs<br>Depreciation<br>Distribution of Parish fees<br>Self funded activities expenditure<br>Salaries and Wages<br>Independent Examiners Fees<br>Professional Fees|Unrestricted<br>Funds<br>£<br>28,878<br>24,018<br>-<br>124,194<br>172<br>14,058<br>14,020<br>3,620<br>25,002<br>12,222<br>8,379<br>16,299<br>18,562<br>4,651<br>1,154<br>-<br>12,276<br>-<br>379<br>19,062<br>275,625<br>1,530<br>1,533|Designated<br>Restricted<br>TOTAL<br>TOTAL<br>Funds<br>Funds<br>2025<br>2024<br>£<br>£<br>£<br>£<br>-<br>-<br>28,878<br>19,584<br>-<br>-<br>24,018<br>23,383<br>-<br>7,646<br>7,646<br>18,837<br>-<br>-<br>124,194<br>111,586<br>-<br>-<br>172<br>247<br>-<br>544<br>14,602<br>13,639<br>-<br>4,708<br>18,728<br>17,090<br>-<br>1,158<br>4,778<br>3,413<br>-<br>-<br>25,002<br>27,427<br>-<br>440<br>12,662<br>-<br>-<br>-<br>8,379<br>9,392<br>-<br>-<br>16,299<br>17,850<br>-<br>-<br>18,562<br>24,695<br>-<br>-<br>4,651<br>3,830<br>-<br>-<br>1,154<br>1,252<br>-<br>-<br>-<br>515<br>-<br>548<br>12,824<br>14,673<br>17,429<br>-<br>17,429<br>16,875<br>-<br>-<br>379<br>1,416<br>-<br>10,148<br>29,210<br>26,216<br>-<br>27,253<br>302,878<br>278,320<br>-<br>-<br>1,530<br>1,530<br>-<br>-<br>1,533<br>917|
|---|---|---|
|TOTAL<br>**b) Raising Funds**<br>Notes<br>Advertising|605,634<br>Unrestricted<br>Funds<br>£<br>323|17,429<br>52,445<br>675,508<br>632,687|
|||<br>Designated<br>Funds<br>£<br>Restricted<br>Funds<br>£<br>TOTAL<br>2025<br>£<br>TOTAL<br>2024<br>£<br>-<br>-<br>323<br>1,303|
||323|-<br>-<br>323<br>1,303|



22 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **4. DETAILS OF CERTAIN TYPES OF EXPENDITURE** 

|**4. DETAILS OF CERTAIN TYPES OF EXPENDITURE**|||
|---|---|---|
||2025|2024|
||£|£|
|Independent examiner’s fees|1,530|1,530|
|Other fees (payroll and accountancy services)|498|516|



## **5 (a). TANGIBLE FIXED ASSETS** 

|Cost 1-Jan-25<br>Additions<br>Cost at 31-Dec-25<br>Depreciation 1-Jan-25<br>Charge<br>Depreciation 31-Dec-25<br>Net book value 31-Dec-25<br>Net book value 31-Dec-24|Unrestricted<br>fund<br>£<br>Church<br>Centre<br>Fixtures,<br>Fittings &<br>Equipment<br>Unrestricted<br>fund<br>£<br>Church<br>Services<br>Fixtures,<br>Fittings &<br>Equipment<br>Unrestricted<br>fund<br>£<br>Other<br>Equipment<br>Total<br>£<br>394,162<br>183,237<br>30,340<br>607,739<br>26,688<br>-<br>1,339<br>28,027|
|---|---|
||420,850<br>183,237<br>31,679<br>635,766|
||370,502<br>150,697<br>20,303<br>541,502<br>6,227<br>8,778<br>2,424<br>17,429|
||376,729<br>159,475<br>22,727<br>558,931|
||**44,121**<br>**23,762**<br>**8,953**<br>**76,836**|
||23,660<br>32,540<br>10,038<br>66,238|



## **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 accrues interest. 

23 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **5 (c). INVESTMENT ASSETS** 

|Cost 1-Jan-25<br>Revaluation<br>Additions<br>Disposals<br>Transfers Out<br>Cost at 31-Dec-25|Endowment<br>**TOTAL**<br>fund<br>**31-Dec-25**<br>£<br>£<br>COIF<br>Income<br>Shares<br>16,880<br>16,880<br>(675)<br>(675)<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|
||16,205<br>**16,205**|



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** 

|**6. DEBTORS AND PREPAYMENTS**||
|---|---|
|Other Debtors and Prepayments<br>Gift Aid Tax Recoverable<br>Accounts Receivable<br>**7. CASH AT BANK AND IN HAND**<br>Cash at Bank|Unrestricted<br>Designated<br>Endowment<br>Restricted<br>**Total**<br>**Total**<br>Fund<br>Fund<br>Fund<br>Fund<br>**31-Dec-25 31-Dec-24**<br>£<br>£<br>£<br>£<br>**£**<br>**£**<br>9,656<br>-<br>-<br>-<br>9,656<br>9,286<br>8,013<br>-<br>-<br>-<br>8,013<br>2,639<br>7,224<br>-<br>-<br>-<br>7,224<br>8,823|
||**24,893**<br>**-**<br>**-**<br>**-**<br>**24,893**<br>**20,748**|
||Unrestricted<br>Designated<br>Endowment<br>Restricted<br>**Total**<br>**Total**<br>Fund<br>Fund<br>Fund<br>Fund<br>**31-Dec-25 31-Dec-24**<br>£<br>£<br>£<br>£<br>**£**<br>**£**<br>569,241<br>25,000<br>-<br>20,994<br>615,235<br>715,773|
||**569,241**<br>**25,000**<br>**-**<br>**20,994**<br>**615,235**<br>**715,773**|



## **8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Accounts Payable<br>Accruals and Deferred Income<br>Independent Examiners Fees<br>Employer Pension Contributions<br>HMRC PAYE and NI<br>Other Creditors<br>Hire Security Deposits Held|Unrestricted<br>Designated<br>Endowment<br>Restricted<br>**Total**<br>**Total**<br>Fund<br>Fund<br>Fund<br>Fund<br>**31-Dec-25 31-Dec-24**<br>£<br>£<br>£<br>£<br>**£**<br>**£**<br>19,657<br>-<br>-<br>-<br>19,657<br>24,404<br>-<br>-<br>-<br>-<br>-<br>7,057<br>1,530<br>-<br>-<br>-<br>1,530<br>1,530<br>2,475<br>-<br>-<br>-<br>2,475<br>2,652<br>5,112<br>-<br>-<br>-<br>5,112<br>3,696<br>5,758<br>-<br>-<br>-<br>5,758<br>8,503<br>-<br>-<br>-<br>-<br>-<br>1,000|
|---|---|
||**34,532**<br>**-**<br>**-**<br>**-**<br>**34,532**<br>**48,842**|



24 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **9. DESIGNATED FUNDS** 

||**CURRENT YEAR**|
|---|---|
|Balance<br>Gains and<br>Balance<br>01-Jan-25<br>Losses<br>Income<br>Expenditure<br>Transfers<br>31-Dec-25<br>£<br>£<br>£<br>£<br>£<br>£<br>Fixed Asset Fund<br>66,238<br>-<br>-<br>(17,429)<br>28,027<br>76,836<br>Essential Repairs Fund<br>25,000<br>-<br>-<br>-<br>-<br>25,000<br>**91,238**<br>**-**<br>**-**<br>**(17,429)**<br>**28,027**<br>**101,836**<br>**PREVIOUS YEAR**<br>Balance<br>Gains and<br>Balance<br>01-Jan-24<br>Losses<br>Income<br>Expenditure<br>Transfers<br>31-Dec-24<br>£<br>£<br>£<br>£<br>£<br>£<br>Fixed Asset Fund<br>77,667<br>-<br>-<br>(16,875)<br>5,446<br>66,238<br>Essential Repairs Fund<br>25,000<br>-<br>-<br>-<br>-<br>25,000<br>Strategic Fund (previously<br>Investment Fund)<br>named<br>448,330<br>-<br>-<br>-<br>(448,330)<br>-<br>**550,997**<br>**-**<br>**-**<br>**(16,875)**<br>**(442,884)**<br>**91,238**|Balance<br>Gains and<br>Balance<br>01-Jan-25<br>Losses<br>Income<br>Expenditure<br>Transfers<br>31-Dec-25<br>£<br>£<br>£<br>£<br>£<br>£<br>66,238<br>-<br>-<br>(17,429)<br>28,027<br>76,836<br>25,000<br>-<br>-<br>-<br>-<br>25,000|
||**91,238**<br>**-**<br>**-**<br>**(17,429)**<br>**28,027**<br>**101,836**|
||**PREVIOUS YEAR**|
||**550,997**<br>**-**<br>**-**<br>**(16,875)**<br>**(442,884)**<br>**91,238**|



**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 designated funds are represented by: 

|Tangible Fixed Assets<br>Cash at bank and in hand<br>Current assets|31-Dec-25<br>31-Dec-24<br>£<br>£<br>76,836<br>66,238<br>25,000<br>25,000<br>-<br>- <br>**101,836**<br>**91,238**|
|---|---|



25 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **10. RESTRICTED FUNDS** 

||**CURRENT YEAR**|
|---|---|
|Gift Day Fund<br>Campus Mission Initiative Fund<br>Henry Smith Fund<br>New Wine Raising Generations Fund<br>Youth Fest<br>Other Small Funds<br>Just Sow<br>Youth Bursary<br>Gift Day Fund<br>Campus Mission Initiative Fund<br>Henry Smith Fund<br>New Wine Raising Generations Fund<br>Youth Fest<br>Other Small Funds<br>Just Sow<br>Youth Bursary<br>WDBF Grant for Lighting|Balance<br>Gains and<br>01-Jan-25<br>Losses<br>Income<br>Expenditure<br>Transfers<br>Balance<br>31-Dec-25<br>£<br>£<br>£<br>£<br>£<br>£<br>247<br>-<br>7,783<br>(7,961)<br>-<br>69<br>24,876<br>-<br>12,229<br>(29,090)<br>-<br>8,015<br>423<br>-<br>-<br>(369)<br>-<br>54<br>6,650<br>-<br>5,000<br>(4,562)<br>-<br>7,088<br>2,749<br>-<br>10,443<br>(9,606)<br>-<br>3,586<br>1,565<br>-<br>-<br>(315)<br>-<br>1,250<br>465<br>-<br>-<br>-<br>-<br>465<br>1,009<br>-<br>-<br>(542)<br>-<br>467|
||**37,984**<br>**-**<br>**35,455**<br>**(52,445)**<br>**-**<br>**20,994**|
||**PREVIOUS YEAR**|
||Balance<br>01-Jan-24<br>Gains and<br>Losses<br>Income<br>Expenditure<br>Transfers<br>Balance<br>31-Dec-24<br>£<br>£<br>£<br>£<br>£<br>£<br>2,528<br>-<br>18,837<br>(20,149)<br>(969)<br>247<br>23,920<br>-<br>26,616<br>(23,721)<br>(1,939)<br>24,876<br>719<br>-<br>-<br>(296)<br>-<br>423<br>4,166<br>-<br>5,000<br>(2,516)<br>-<br>6,650<br>1,593<br>-<br>10,584<br>(9,428)<br>-<br>2,749<br>2,512<br>-<br>-<br>(947)<br>-<br>1,565<br>-<br>-<br>1,020<br>(555)<br>-<br>465<br>-<br>-<br>1,009<br>-<br>-<br>1,009<br>-<br>-<br>1,124<br>(1,124)<br>-<br>-|
||**35,438**<br>**-**<br>**64,190**<br>**(58,736)**<br>**(2,908)**<br>**37,984**|



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 and a further grant was awarded by the same funding body in 2025. 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 are the remainder of the 2020 Advent Gift Day and other historical restricted funds. 

The restricted funds are wholly represented by cash reserves, as detailed below: 

||31-Dec-25|31-Dec-24|
|---|---|---|
||£|£|
|Tangible Fixed Assets|-|-|
|Cash at bank and in hand|20,994|37,984|
|Current assets|-|-|
||**20,994**|**37,984**|



26 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **11. ENDOWMENT FUNDS** 

||**CURRENT YEAR**|
|---|---|
|Church Fabric Upkeep<br>Church Fabric Upkeep|Balance<br>Gains and<br>01-Jan-25<br>Losses<br>Income<br>Expenditure<br>Transfers<br>Balance<br>31-Dec-25<br>£<br>£<br>£<br>£<br>£<br>£<br>16,880<br>(675)<br>-<br>-<br>-<br>16,205|
||**16,880**<br>**(675)**<br>**-**<br>**-**<br>**-**<br>**16,205**|
||**PREVIOUS YEAR**|
||Balance<br>01-Jan-24<br>Gains and<br>Losses<br>Income<br>Expenditure<br>Transfers<br>Balance<br>31-Dec-24<br>£<br>£<br>£<br>£<br>£<br>£<br>16,502<br>378<br>458<br>-<br>(458)<br>16,880|
||**16,502**<br>**378**<br>**458**<br>**-**<br>**(458)**<br>**16,880**|



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<br>Cash at bank and in hand<br>Current assets|31-Dec-25<br>31-Dec-24<br>£<br>£<br>-<br>-<br>-<br>-<br>16,205<br>16,880|
|---|---|
||<br> <br>**16,205**<br>**16,880**|



27 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **12. RECONCILIATION OF FUNDS HELD AND MOVEMENT OF FUNDS** 

|General Funds<br>Designated Funds<br>Endowment Funds<br>Restricted Funds<br>General Funds<br>Designated Funds<br>Endowment Funds<br>Restricted Funds<br>13. SUMMARY OF ASSETS BY FUND<br>Tangible fixed assets<br>Investments<br>Debtors<br>Cash at bank and in hand<br>Creditors < 1 year<br>Creditors > 1 year<br>Tangible fixed assets<br>Investments<br>Debtors<br>Cash at bank and in hand<br>Creditors < 1 year<br>Creditors > 1 year|**CURRENT PERIOD**|
|---|---|
||Balance<br>01-Jan-25<br>£<br>Income<br>£<br>Gain/Loss<br>£<br>Expenditure<br>£<br>Transfers<br>£<br>Balance<br>31-Dec-25<br>£<br>624,695<br>568,891<br>-<br>(605,957) -<br>28,027<br>559,602<br>91,238<br>-<br>-<br>(17,429)<br>28,027<br>101,836<br>16,880<br>- -<br>675<br>-<br>-<br>16,205<br>37,984<br>35,455<br>-<br>(52,445)<br>-<br>20,994|
||**770,797**<br>**604,346**<br>**(675)**<br>**(675,831)**<br>**-**<br>**698,637**|
||**PREVIOUS PERIOD**|
||Balance<br>01-Jan-24<br>Income<br>Gain/Loss<br>Expenditure<br>Transfers<br>Balance<br>31-Dec-24<br>£<br>£<br>£<br>£<br>£<br>£<br>140,521<br>596,303<br>-<br>(558,379)<br>446,250<br>624,695<br>550,997<br>-<br>-<br>(16,875)<br>(442,884)<br>91,238<br>16,502<br>458<br>378<br>-<br>(458)<br>16,880<br>35,438<br>64,190<br>-<br>(58,736)<br>(2,908)<br>37,984|
||**743,458**<br>**660,951**<br>**378**<br>**(633,990)**<br>**-**<br>**770,797**|
||General<br>Designated<br>Restricted<br>Endowment<br>**TOTAL**<br>Fund<br>£<br>-<br>Fund<br>£<br>76,836<br>Fund<br>£<br>-<br>Fund<br>£<br>-<br>**2025**<br>£<br>76,836<br>-<br>-<br>16,205<br>-<br>16,205<br>24,893<br>-<br>-<br>-<br>24,893<br>569,241<br>25,000<br>-<br>20,994<br>615,235<br>(34,532)<br>-<br>-<br>- -<br>34,532<br>-<br>-<br>-<br>-<br>-<br>559,602<br>101,836<br>16,205<br>20,994<br>698,637<br>General<br>Designated<br>Restricted<br>Endowment<br>**TOTAL**<br>Fund<br>£<br>-<br>Fund<br>£<br>66,238<br>Fund<br>£<br>-<br>Fund<br>£<br>-<br>**2024**<br>£<br>66,238<br>-<br>-<br>16,880<br>-<br>16,880<br>20,748<br>-<br>-<br>-<br>20,748<br>652,789<br>25,000<br>-<br>37,984<br>715,773<br>(48,842)<br>-<br>-<br>-<br>(48,842)<br>-<br>-<br>-<br>-<br>-<br>624,695<br>91,238<br>16,880<br>37,984<br>**770,797**|



28 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **14. STAFF COSTS, PAYMENTS TO TRUSTEES AND KEY MANAGEMENT PERSONNEL** 

## **(a) Employees paid via Payroll:** 

|Gross Wages and Salaries<br>Employers NI (net of annual allowance)<br>Life Cover<br>Employers Pension Contributions<br>Statutory Pay Recovered<br>Staff who were engaged in each of the following activities (average numbers):<br>Activities in furtherance of organisation's objects||**31-Dec-25 31-Dec-24**<br>**£**<br>**£**<br>267,039<br>247,117<br>13,865<br>13,454<br>1,006<br>1,018<br>21,577<br>22,505<br>(609)<br>(5,774)|
|---|---|---|
|||**302,878**<br>**278,320**|
|||<br>|
||**31-Dec-25 31-Dec-24**<br>TOTAL<br>TOTAL<br>15<br>16||



Employed staff are paid via through a payroll scheme operated by the PCC. No employees received emoluments in excess of £60,000 (2024: None). 

## **(b) Self Employed Staff:** 

There were no self employed staff in 2025 or 2024. 

## **(c) Key Management Personnel** 

The charity's key management personnel is considered to be the Trustees. The PCC approved two Trustees to act as a Service Assistant for occasional services (such as Weddings and Funerals) during 2025. The amounts are detailed below. (2024: one Trustee received remuneration of £1,517.54 under a short term employment contract to cover a period of staff shortage). No other charity trustee received payment for professional or other services supplied to the charity (2024: £nil). 

The following payments were paid to key management personnel during 2025: 

|**Name**|**Reason**|**Total**|**Total**|
|---|---|---|---|
|||**2025**|**2024**|
|||£|£|
|A Finney (Trustee)|Service Assistant for occasional services|132|118|
|J Racklyft (Trustee)|Service Assistant for occasional services|60|0|



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 2025 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 2025 was £9,929 (2024: £13,482). Of this amount, reimbursement for charitable expenditure incurred totalled £3,850 (2024: £3,490). Expenses were paid to 6 Trustees and totalled £6,079 (2024: £6,465) - see further breakdown below. One Trustee received £0 (2024: £3,526) in sabbatical payments for their role as Clergy (not their role as Trustee) via a distribution of restricted giving for that purpose. As detailed in key management personnel above, Trustee A Finney received salary payments totalling £132 (2024: £1,518) and Trustee J Rackylft received £60 (2024: £0) as a Service Assistant. 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. 

29 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **14. STAFF COSTS, PAYMENTS TO TRUSTEES AND KEY MANAGEMENT PERSONNEL** 

## **(d) Transactions with PCC members and Trustees** 

Expenses paid to Trustees: 

|P Hutchings<br>E Roberts<br>M Archer<br>S Coleman<br>S Archer<br>Mobley Engineering *<br>Total|Repairs &<br>Mileage<br>Travel<br>Phone &<br>Contribution<br>Printing<br>**TOTAL**<br>Maintenance<br>Training &<br>Internet<br>to costs<br>Postage etc<br>**2025**<br>Subsistence<br>£<br>£<br>£<br>£<br>£<br>£<br>**£**<br>-<br>-<br>311<br>-<br>-<br>-<br>311<br>-<br>-<br>-<br>77<br>-<br>-<br>77<br>-<br>463<br>930<br>622<br>310<br>1,577<br>3,902<br>-<br>145<br>18<br>270<br>-<br>117<br>550<br>-<br>11<br>346<br>-<br>-<br>80<br>437<br>802<br>-<br>-<br>-<br>-<br>-<br>802|
|---|---|
||802<br>619<br>1,605<br>969<br>310<br>1,774<br>**6,079**|



* Trustee B Mobley is also a Director of Mobley Engineering Solutions Limited, which provided grounds repairs and building maintenance services to the PCC during 2025. 

The aggregate total amount of donations received from Trustees is as follows: 

||2025|2024|
|---|---|---|
||£|£|
|Total donations before Gift Aid|65,400|71,626|



Donations from Trustees totalled £65,400 (2024: £71,626) excluding Gift Aid. Of the £65,400 donated by Trustees, £500 was restricted for a church mission partner as part of the Christmas appeal. The remaining £64,900 was unrestricted. 

## **(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, Diocesan contribution, apprenticeship levy and national insurance contributions in the applicable period for 2025 was £33,408 (2024: £32,058) 

The following payments were paid to related parties during 2025: 

|**Name**|**Reason**|**Total**||**Total**||
|---|---|---|---|---|---|
|||**2025**||**2024**||
|||£||£||
|S Fox (spouse of Trustee)|Service Assistant for occasional services||44||0|
|A Besley (fiancé of daughter of|Service Assistant for occasional services||50||0|
|a Trustee)||||||



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. 

Volunteers play a significant role in the activities of the church which is described in the Trustees report. It is not possible to accurately or consistently value their contribution and therefore these accounts do not include a monetary value in this respect. 

30 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **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. 

31 



Parochial Church Council of Highfield Church, Southampton 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2025** 

## **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: 

1. the Defined Benefits Scheme 

2. 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 (2025: £21,577, 2024: £22,505). 

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 8 active members in the Pension Builder Classic section at 31 December 2025 {2024: 9). 

32 



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 2024** 

|Notes<br>**Income and endowments from:**<br>Donations and Legacies<br>2a<br>Charitable Activities<br>2b<br>Investment Income<br>2c<br>Other Income<br>2d<br>**TOTAL**<br>**Expenditure on:**<br>Charitable Activities<br>3a<br>Raising Funds<br>3b<br>**TOTAL**<br>**NET INCOME/(EXPENDITURE)**<br>**BEFORE INVESTMENTS**<br>**GAINS/(LOSSES)**<br>Gains/(losses) on<br>investments<br>5b<br>**NET INCOME/(EXPENDITURE)**<br>Transfer Between Funds<br>10<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total Funds Brought Forward<br>**Total Funds Carried Forward**|Unrestricted<br>Designated Endowment<br>Restricted<br>TOTAL<br>TOTAL<br>Funds<br>Funds<br>Funds<br>Funds<br>2024<br>2023<br>£<br>£<br>£<br>£<br>£<br>£<br>486,554<br>-<br>-<br>53,606<br>540,160<br>470,287<br>104,223<br>-<br>-<br>10,584<br>114,807<br>109,754<br>5,526<br>-<br>458<br>-<br>5,984<br>2,851<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|
||**596,303**<br>**-**<br>**458**<br>**64,190**<br>**660,951**<br>**582,892**|
||557,076<br>16,875<br>-<br>58,736<br>632,687<br>544,959<br>1,303<br>-<br>-<br>-<br>1,303<br>-|
||**558,379**<br>**16,875**<br>**-**<br>**58,736**<br>**633,990**<br>**544,959**|
||**37,924**<br>**(16,875)**<br>**458**<br>**5,454**<br>**26,961**<br>**37,933**<br>-<br>-<br>378<br>-<br>378<br>4,761<br>**37,924**<br>**(16,875)**<br>**836**<br>**5,454**<br>**27,339**<br>**42,694**<br>446,250<br>(442,884)<br>(458)<br>(2,908)<br>-<br>-<br>**484,174**<br>**(459,759)**<br>**378**<br>**2,546**<br>**27,339**<br>**42,694**<br>140,521<br>550,997<br>16,502<br>35,438<br>743,458<br>700,764|
||**624,695**<br>**91,238**<br>**16,880**<br>**37,984**<br>**770,797**<br>**743,458**|



33 



Parochial Church Council of Highfield Church, Southampton 

## **INDEPENDENT EXAMINER'S REPORT ON THE ACCOUNTS** 

I report on the accounts of the Parochial Church Council of The Ecclesiastical Parish of Highfield, Southampton for the year ended 31st December 2025, which are set out on pages 15 to 33. 

## **Respective responsibilities of the PCC and the examiner** 

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. 

It is my responsibility to: 

- examine the accounts under section 145 of the Charities Act 

- - to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act and 

- to state whether particular matters have come to my attention 

## **Basis of independent examiner's statement** 

My examination was carried out in accordance with the General Directions given by the Charity Commission and to be found in the Church Guidance, 2006 edition, issued from the Finance Division of the Archbishops' Council. That examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below. 

Since the gross income for the year exceeds the amount provided in Section 145(3) of the Charities Act, I confirm that I am qualified to act as Independent Examiner under the provisions of that section of the Act and that my qualification is as shown below. 

## **Independent examiner's statement** 

In connection with my examination, no matter has come to my attention: 

- (1) which gives me reasonable cause to believe that in any material respect the requirements: 

      - to keep accounting records in accordance with section 130 of the Charities Act; and 

   - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act 

   - have not been met; or 

- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 

Signed: 

G W Schulz FCMA 

Date: 18-Apr-26 

Relevant professional qualification or body: The Chartered Institute of Management Accountants 

Address: Independent Examiners Limited, The Grain Store, Hills Barns, Appledram Lane, Chichester, PO20 7EG 

34