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2020-12-31-accounts

Brockenhurst Parochial Church Council St. Nicholas' with St. Saviour's

Registered Charity 1131796

Annual Report

and

Financial Statements

for the year ended 31 December 2020

Vicar:

Revd. Simon Newham

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Annual Report for 2020

Background

The Parochial Church Council of the Ecclesiastical Parish of Brockenhurst has the responsibility for promoting within the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical in cooperation with the vicar, the Revd Simon Newham to whom day to day management of the parish is delegated.

The ecclesiastical parish is part of the Diocese of Winchester within the Church of England. There are two churches within the parish: St Nicholas’ the parish church and St Saviour’s located in the centre of the village of Brockenhurst.

The registered name of the PCC is The Parochial Church Council of the Ecclesiastical Parish of Brockenhurst and its registered working name is Brockenhurst PCC. The registered number of the charity is 1131796, and statutory information regarding the Parish may be found on the Charity Commission website, which it is the responsibility of the PCC to update, particularly following the Annual Parochial Church Meeting.

When planning activities for the year the Vicar and PCC have adopted Charity Commission guidance on public benefit and, in particular, specific guidance on charities for the advancement of religion.

Administrative Information

Vicar: Revd. Simon Newham

The correspondence address is:

The Church Office, Wilverley Road, Brockenhurst SO42 7SP

The Independent Examiner is:

Lewis Ball & Co William House 32 Bargates Christchurch Dorset BH23 1QL

Our bankers are:

Lloyds Bank Lymington PO Box 1000 Andover BX1 1LT

HSBC Lymington 102 High Street Lymington SO41 9ZP

Winchester Diocesan Board of Finance Old Alresford Place Old Alresford SO24 9DH

CCLA Investment Management Ltd The CBF Church of England Funds Senator House 85 Queen Victoria Street London EC4V 4ET

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Parochial Church Council

During the period 1 January 2020 until the date that this report was approved the following have served as members of the Parochial Church Council PCC:

Vicar The Revd. Simon Newham Chairman from June 2019
Wardens Mrs Rosalind Dennison
Mr Jeremy Moss
Mr Alan Wright Retired at 2020 APCM
Deanery Synod Representatives Mr Peter Lay Treasurer
Mr John Pearson
Mr Martyn Taylor
Mrs Cynthia Wilson Retired at 2020 APCM
Elected Members Mrs Pauline Brown
Mrs Tina Cumberlege Resigned during the year
Mrs Elizabeth Dodwell
Mr Timothy Dodwell
Mrs Diana Fletcher
Mr Tony Foulger
Mr Geoffrey Jennings Retired at 2020 APCM
Mrs Joyce Kolaczkowski
Mr Simon Lansdowne Retired at 2020 APCM
Mrs Wendy Lay
Mr Nathan Parnaby
Mrs Camilla Pearse
Mrs Jo Plummer
Mrs Lindy Waight

Structure, Governance and Management

The PCC is a body corporate established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure. During 2009 as a result of changes to legislation, The Parochial Church Council (PCC) became a separately registered Charity with the Charity Commission under number 1131796.

Members of the PCC are appointed ex officio, or co-opted, or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules.

All Church members are encouraged to register on the Electoral Roll and stand for election to the PCC.

Teams and Committees

The PCC operates through a number of teams and committees which meet between full meetings of the PCC. The teams have oversight responsibility for some additional committees. The committees review major risks to which the PCC may be exposed and implement systems or procedures to manage those risks. This includes appropriate training, and taking advice from experts.

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Objectives and Activities

The PCC is responsible for co-operating with the Vicar in promoting within the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It is also responsible for maintaining the two village churches of St. Nicholas' and St. Saviour's. The vision is to be a Christ Centred Community

There were 214 parishioners on the Church Electoral Roll at the 2020 APCM, of whom 28 were not resident in the Parish compared with 219 in 2019. The size of the worshiping community is 196 with an average weekly attendance of 77, although the number increases substantially at major festivals. As a result of the closure of churches, due to the Covid-19 Pandemic, Sunday and weekday services have been made available online and attract similar numbers of worshippers.

Review of the year

Despite the impact of the pandemic the full PCC met four times using online facilities and with a high level of attendance. The PCC committees and appointed teams continued between PCC meetings and their reports were received by the PCC, discussed and acted on where necessary.

The key points of focus for our Church in 2020 were:

We have two church buildings – St Nicholas’ (the parish church) and St Saviour’s. Both buildings were closed during the first Pandemic Lockdown in line with Government and Diocesan instructions. Services moved online – initially through a pre-recorded video service and ultimately with ‘live’ online services using Zoom video facilities.

Support for our congregations

During the first 3 months’ of 2020 during activities continued following our normal Sunday service patterns:

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

St Nicholas’ – 0800 Holy Communion & 11.15 Service of Word – with monthly Evensong St Saviour’s – 0930 Holy Communion (2x), Café Church & Family Service each month

Daily Morning Prayer (St Saviour’s) and Evening Prayer (St Nicholas’) services were held together with a weekly Holy Communion on Thursday mornings. Each month Holy Communion was taken to two care homes and two residential homes in the village.

These activities were curtailed from the end of March following the Covid-19 Pandemic restriction imposed on social distancing and ‘stay-at-home’ to be replaced by online services and an emerging alternative pattern of physical services when restrictions were reduced from late June. In November restrictions were tightened and physical services again curtailed for that month.

From mid-June St Nicholas’ church was opened daily for Private Prayer and a weekly Sunday service at St Saviours’ restarted from mid-July – with strict restrictions on distancing, hygiene and no singing! In August a second Sunday service of Holy Communion at St Saviour’s was introduced while attendance at the Thursday Holy Communion service was allowed from mid-July.

Many housegroups continued during 2020 with various innovative approaches (Zoom, walks, etc.) to allow continued fellowship.

In October we held a Bereavement Service in St Saviour’s to offer support to those who have lost a loved one although the usual afternoon tea had to be absent.

Remembrance services in November were moved online with success but the most dramatic expression was the field of 1000 crocheted poppies setup in from of St Saviour’s and much photographed by passers-by.

Christmas activities were adapted for the new normal of a Coronavirus world, with two ‘Covid Carol Services’ proving popular both in person and online. On Christmas Eve and Christmas morning we held outside services in front of St Saviour’s with an informal children’s Nativity play on Christmas Eve. The outside format allowed more people to attend in safety and showed our presence to anyone passing by.

Our Youth and Children’s worker’s contract came to an end in September and the PCC elected not to renew as demographic changes in the village coupled with the effects of the pandemic had made progress with this aspect of our work unproductive. However Simon Newham, our vicar, continues enthusiastically with his links to local primary schools including the creation of a weekly Assembly video which is appreciated by parents too. The PCC appointed one of its members as a new Children and Youth coordinator so that new plans for this work, including within the local Brockenhurst College, can be developed during 2021.

Digital Church

The pandemic and lockdown forced a significant switch to move our activities online using the website as the focal point (https://www.brockenhurstchurch.com). Initially used for communications of key information and news (Brockcare, local services etc.) a programme of online ‘Virtual Church’ services was developed.

Simon Newham (Vicar) and John Pearson (Lay Reader) quickly showed great skills in recording and editing offline video services which were published each Sunday from the end of March. Over time a method of capturing and broadcasting ‘live’ services from St Saviour’s was developed without requiring major investment. These facilities allowed both live input from the church combined with pre-recorded video material (songs, talks) and eventually even remote guest speakers (live or recorded).

These live services used the Zoom platform to connect remote attendees – enabling contributions (reading, prayer, thoughts) from those not in in the building. In this way a community ‘feel’ was maintained with lots of interaction between attendees after the services. The services were also recorded and available to watch after the event through the website.

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

These facilities developed during the year and become more reliable and comprehensive. In turn more members of our congregation became familiar with their part in the technology, many learning new skills despite advancing years. Each week all three services were captured in this way and continued to cater for those unable to attend even when the church building was open.

A further ‘audio only’ facility was provided for those unable to connect by the internet, giving contact to anyone able to simply receive a phone call broadcast of the service. Several folk confined to residential care were able to participate in his way which would not have been possible in ‘normal’ times.

Our role in the community

Brockcare – our pastoral group providing support to the vulnerable and elderly in the village took a leading role from late March to organise help for those shielding and isolated. A full leaflet drop was quickly arranged to every Brockenhurst household offering help with shopping and supplies and a list of almost 100 people willing to provide help was coordinated. Regular telephone calls and contact were organised with the elderly to give support and contact.

Other activities such as Wednesday Lunches and Thursday coffee mornings (CAMEO, C ome A nd M eet E ach O ther) and our annual Holidays At Home were curtailed from late March although weekly ‘socially distanced teas’ were able to be provided in September and October.

Remarkably Christmas Day lunch was provided for some of the villagers who would otherwise be on their own. This was supported by members of the church family who delivered the lunches to homes having been prepared in the Church Hall by a professional caterer who willingly gave their time free of charge.

We also served our community through baptisms, weddings and funerals as allowed under the restrictions including the provision of online access so that people not able to attend could participate.

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Financial Review

Independent Examiner

The appointment of Mr Lewis Ball as Independent Examiner for these financial statements was approved at the APCM meeting held on 22 October 2020.

Overall Summary

Overall there was a net surplus of £13,204 before the unrealised investment gains are taken into account. However, this includes the following exceptional items and depreciation charges

If depreciation charges are excluded the surplus before depreciation was £26,457 and £2,957 if the exceptional income from legacies and donations is excluded.

Impact of Covid-19 Pandemic

The pandemic resulted in an estimated loss of income of about £15,800 compared to 2019 from

However, this was partially offset by Job Retention Scheme grants of £7,800 received from HMRC resulting in an overall loss of income due to the pandemic of about £7,960 compared to 2019.

The loss of income was also further offset by a reduction in gas consumption resulting in a reduction in Gas, Electric and Water charges of £7,900 in 2019 to £3,500 in 2020.

Overall Expenditure

Overall expenditure was £227,174 against income of £240,378 resulting in an overall surplus of £13,204 compared to a deficit in 2019 of £4,262 from expenditure of £260,912 against income of £256,650.

Contributions to the Diocesan Common Mission Fund (Parish Share) amounted to £115,152 (or 48% of overall income) in 2020 compared with £110,330 in 2019. Other major categories of expenditure were

2020 2019
Donations to charities £15,813 £19,038
Staff salaries (including the employment costs of the Youth Worker) £37,997 £47,235
Total expenditure on youth work £16,693 £22,786
Maintenance of both churches and the hall £8,496 £12,550
Other running costs (electricity, gas, clergy expenses, insurance etc.) £36,463 £58,508
Depreciation charges £13,253 £13,251
Overall surplus/(deficit) £13,204 (£4,262)

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

----- Start of picture text -----
Surplus
5%
Other running
expenses
15%
Common Mission
Depreciation
5% £240,378 Fund (Parish Share)48%
Maintenance
4%
Salaries & wages
16%
Charities
7%
----- End of picture text -----

Overall Income

Income comes mainly from donations and the associated Gift Aid claimed from HMRC. Income was boosted in 2020 by:

The graph below shows the proportion of income coming from the main accounting categories. This shows that

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

----- Start of picture text -----
Interest
Activities for 1%
generating funds
2%
Charitable
activities
7%
Legacies
8%
Grants
3%
Gift Aid £240,378
Planned giving
12%
57%
Other donations
6%
Rwanda Appeal
2%
Collections
2%
----- End of picture text -----

Appeals

During 2020 an appeal was held to help support the diocese of Kigeme in Rwanda from the impact of the Covi-19 Pandemic. This raised £5,610.

Ordinary Activities

The church spends the money at its disposal on the following main items:

Money to support these is available from a number of Funds, primarily:

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

In addition money is also available from:

Comparison with Previous Years

Excluding depreciation charges and appeal income there was a large surplus of £26,160 as shown in the graph below which shows the overall surplus or deficit for the years 2013 to 2020. This was boosted by extraordinary income from:

If these are excluded the overall surplus before depreciation is £2,660.

----- Start of picture text -----
Net Ordinary income/expenditure
£30,000.00
£25,000.00
£20,000.00
£15,000.00
£10,000.00
£5,000.00
£0.00
-£5,000.00
-£10,000.00
-£15,000.00
2013 2014 2015 2016 2017 2018 2019 2020
----- End of picture text -----

Stewardship Campaign

A Stewardship Campaign was held in February 2020 resulting in an increase in planned donations from about £10,000 per month to about £11,500 per month in May an increase of 15%. However, recently a number of regular donations have been lost and monthly donations have dropped by about £700 to £10,800 in December.

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

----- Start of picture text -----
3 Month Rolling Average Planned
Income
£16,000
£14,000
£12,000
£10,000
£8,000 Planned
Gift Aid
£6,000
Total
£4,000
£2,000
£0
Jan--20 Feb--20 Mar--20 Apr--20 May--20 Jun--20 Jul--20 Aug--20 Sep--20 Oct--20 Nov--20 Dec--20
----- End of picture text -----

Reserves

The PCC reviewed the reserves policy and decided that it was sufficient to keep a cash (or cash equivalent) reserve of three times the average monthly cash expenditure. The PCC considers this is sufficient to cover against

The reserves comprise the cash held in unrestricted funds and at present exclude the cash held in the unrestricted flower funds. The cash reserves held on 31 December 2020 were £93,021 with an additional £2,393 held in the flower funds. The average monthly cash expenditure in 2020 was £20,500 for which the reserves policy requires a reserve of £61,500. The PCC decided that £30,000 of unrestricted funds should be designated as a Fabric Fund to pay for the repairs and maintenance work on the two churches, recommended by the Quinquennial Inspection carried out in 2020, over the next five years. Consequently, the undersigned reserves at 31 December 2020 are £63,021 which is £1,500 more than required by the reserves policy. However, the PCC believes to be reasonable because cash expenditure in 2020 has been lower than normal due to the Covid-19 Pandemic

Conclusions

2020 was an extraordinary year due to the Covid-19 Pandemic. Although income was reduced due to the churches being closed, the lack of fees from cancelled or postponed weddings, the reduction of income from collections and lack of income from hiring the church hall expenditure was less than normal and donations increased due to the response to the Stewardship Campaign. The overall outcome was a surplus even before income from legacies and extra-ordinary donations is taken into account. This positive outcome has allowed the PCC to set aside funds to cover the costs of the repairs identified by the Quinquennial Inspection which are estimated to cost around £30,000 over the next five years.

Although there was a large surplus in 2020 the church is reliant on income from regular donations, which account for 79% of all income. There was a good response to the Stewardship Campaign in February, increasing regular donations by 15%. However, some of these gains have recently been lost so that the monthly regular income is now about 9% higher than in December 2019.

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Statement of trustee responsibilities applicable to members of the Parochial Church Council of the Ecclesiastical Parish of Brockenhurst (Brockenhurst PCC)

The trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Annual Financial Statements

The attached financial statements for the year ended 31 December 2020 have been prepared in accordance with the relevant Church Accounting Regulations, applicable Accounting Standards and Statement of Recommended Practice (FRS 102) 2015.

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Independent Examiner’s Report to Brockenhurst PCC

We report on the accounts for the year ended 31 December 2020 which are set out on pages 14 to 30.

Respective responsibilities of the Trustees and Independent Examiner

The church’s trustees are responsible for the preparation of the accounts. The church’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is our responsibility to:

Basis of Independent Examiner’s Statement

Our examination was carried out in accordance with the General Directions given by the Charity Commission.

An examination includes the review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the management committee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in a full audit, and consequently we do not express an audit opinion on the accounts.

Independent Examiner’s Statement

Since the gross income for the year exceeds the amount provided in section 145(3) of the Act, we conform that we are qualified to act as Independent Examiner under the provisions of that section of the Act and that our qualification is as shown below.

In connection with our examination, no matters have come to my attention

  1. which give us reasonable cause to believe that in any material respect the requirements

  2. to keep accounting records in accordance with section 130 of the 2011 Act; and

  3. to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met; or

  4. to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Mr L D Ball FCPA

Lewis Ball & Co William House 32 Bargates Christchurch Dorset BH23 1QL

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Statement of Financial Activities for the year ended 31 December 2020

Note
Income and Endowments from:
Donations and Legacies
2(a)
Other trading activities
2(b)
Investments
2(c)
Charitable activities
2(d)
Other Income
2(e )		 Unrestricted
Funds 2020
£
196,490
5,196
451
16,769
59		 Restricted
Funds 2020
£
19,120
-
2,293
-
-		 Endowment
Funds 2020
£
-
-
-
-
-		 Total
2020
£
215,610
5,196
2,744
16,769
59		 Unrestricted
Funds 2019
£
168,253
11,289
773
25,827
465		 Restricted
Funds 2019
£
45,772
-
2,229
1,459
583		 Endowment
Total
Funds 2019
2019
£
£
-
214,025
-
11,289
-
3,002
-
27,286
-
1,048
Total 218,965 21,413 - 240,378 206,607 50,043 -
256,650
Expenditure on:
Raising funds
3(a)
Charitable activities
3(b)		 3,493
181,424		 -
42,257		 -
-		 3,493
223,681		 8,756
189,595		 -
62,561		 -
8,756
-
252,156
Total 184,917 42,257 - 227,174 198,351 62,561 -
260,912
Net Income/(Expenditure)
Transfers between Funds
Other recognised gains/(losses)
Gains/(losses) on investments
7		 34,048
(8,552)
-		 (20,844)
8,552
-		 -
-
5,269		 13,204
-
5,269		 8,256
9,717
-		 (12,518)
(9,717)
-		 -
(4,262)
-
-
12,074
12,074
Net Movement in Funds 25,496 (12,292) 5,269 18,473 17,973 (22,235) 12,074
7,812
Balances brought forward at 1
January		 69,918 35,015 76,619 181,552 51,945 57,250 64,545
173,740
Balances carried forward at 31
December		 95,414 22,723 81,888 200,025 69,918 35,015 76,619
181,552

The notes on pages 17 to 30 form part of these accounts

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Balance sheet at 31 December 2020

Note
FIXED ASSETS
Tangible assets
11
Investment assets: Endowment fund investments
6		 Unrestricted
Funds 2020
£
-
-		 Restricted
Funds 2020
£
15,100
-		 Endowment
Funds 2020
£
-
81,888		 Total Funds
2020
£
15,100
81,888		 Unrestricted
Funds 2019
£
-
-		 Restricted
Funds 2019
£
28,353
-		 Endowment
Total Funds
Funds 2019
2019
£
£
-
28,353
76,619
76,619
- 15,100 81,888 96,988 - 28,353 76,619
104,972
CURRENT ASSETS
Stock
Investments
Debtors and prepayments
8
Short-term deposists
Cash at bank and in hand		 1,442
-
67,226
-
36,250		 -
-
70
-
8,977		 -
-
-
-
-		 1,442
-
67,296
-
45,227		 799
-
63,993
-
14,089		 -
-
468
-
9,511		 799
-
-
-
64,461
-
-
23,600
Total current assets 104,918 9,047 - 113,965 78,881 9,979 -
88,860
LIABILITIES
Creditors - amounts falling due within one year
9		 9,504 1,424 - 10,928 8,963 3,317 -
12,280
Net current assets/(liabilities) 95,414 7,623 - 103,037 69,918 6,662 -
76,580
Total assets less current liabilities
Creditors - amounts falling due after one year		 95,414
-		 22,723
-		 81,888
-		 200,025
-		 69,918
-		 35,015
-		 76,619
181,552
-
-
Total net assets 95,414 22,723 81,888 200,025 69,918 35,015 76,619
181,552
PARISH FUNDS
Unrestricted
10(a)
Restricted
10(b)
Endowment
10(c)		 95,414 22,723 81,888 95,414
22,723
81,888		 69,918 35,015 69,918
35,015
76,619
76,619
95,414 22,723 81,888 200,025 69,918 35,015 76,619
181,552

The notes on pages 17 to 30 form part of this account

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Cash flow statement at 31 December 2020

Net cash from operating activities
Cash flows from investing activities
Dividends, interest and rent from investments
Purchase of:
Tangible fixed assets for use of the PCC
Change in cash and cash equivalents in the reporting period
Cash and cash eqivalents at 1 January
Cash and cash equivalents at 31 December
Reconciliation of net income/(expenditure) before investment gains
Net income before investment gains at 31 December
Adjustments for:
Depreciation charges
Dividends, interest and rent from investments
Decrease/(Increase) in stock
Decrease/(increase) in debtors
(Decrease)/Increase in creditors
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)		 End 2020 End 2020
18,883
2,744
21,627
23,600
45,227
13,204
13,253
(2,744)
(643)
(2,835)
(1,352)
18,883
45,227
-
45,227		 End 2019
End 2019
2,744
-		 4,634
3,002
(117)
2,885
7,519
16,081
23,600
(4,262)
13,251
(3,002)
17
8,419
(9,789)
4,634
23,600
-
23,600

The notes on pages 17 to 30 form part of this account

Approved by the Parochial Church Council on 25 March 2021 and signed on its behalf by: Revd Simon Newham (Chairman), Mr Peter Lay (Treasurer)

Page 16

Notes to the financial statements for the year ended 31 December 2020

1. Accounting Policies

The PCC is a public benefit entity within the meaning of FRS102. The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCC’s and with the Regulations “true and fair view” provisions.

The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body nor those that are informal gatherings of Church members.

Funds

Unrestricted funds are general funds which can be used for PCC ordinary purposes. They represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC. Funds designated by the PCC for a particular purpose, though also unrestricted, are separately disclosed.

Restricted Funds represent donations, grants and other income received for a specific objective or invited by the PCC for a specific objective. The Funds may only be expended on the specific objective 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.

Endowment Funds are funds, the capital of which must be maintained as determined by the terms of the Fund; only income arising from investment of the endowment may be used either as restricted or unrestricted funds depending on the purpose for which the endowment was established.

Income

Planned giving, collections and donations are recognized when received. Tax refunds are recognized when the incoming resource to which they relate is received. Grants and legacies are accounted for when the PCC is legally entitled to the amounts due. Dividends are accounted for when receivable, interest is accrued. All other income is recognized when it is receivable. All incoming resources are accounted for gross. Amounts collected on behalf of other bodies at events held on church premises and handed to their representatives on the day are not considered to be incoming resources of the PCC and are not included in these statements.

Expenditure

Grants

Grants and donations are accounted for when paid over, or when awarded. Where the PCC has agreed in principle during the year to make grants up to a specified total, subject only to the ascertainment of the year’s result, and such grants are subsequently confirmed and paid, they are provided for in these accounts as an operational (though not a legal) liability and are shown as creditors in the Balance Sheet.

Activities directly relating to the work of the Church

The diocesan parish share is accounted for when payable. Any Parish Share unpaid at 31 December is provided for in these financial statements as an operational (though not a legal) liability and is shown as a creditor in the Balance Sheet.

Assets

Consecrated and benefice property

In so far as consecrated and benefice property of any kind is excluded from the statutory definition of ‘charity’ by Section 109(2)(a) and (c) of the Charities Act 2011 such assets are not capitalised in the financial statements.

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Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Moveable church furnishings

These are capitalised at cost and depreciated over their useful economic life other than where insufficient cost information is available. In this case the item is not capitalised, but all items are included in the Church’s inventory in any case.

Tangible fixed assets for use by charity

These are capitalised if they can be used for more than one year, and cost at least £1,000, They are valued at cost or else, for gifts-in-kind, at a reasonable estimate of their open market value on receipt.

Depreciation is calculated to write off the capitalised cost of fixed assets less their currently anticipated residual fair value over five years.

An impairment review is carried out at each year-end and any resultant loss identified included in expenditure for the year.

Investments

Investments quoted on a recognised stock exchange or whose value derives from them are valued at market value at the year end. Other investment assets are included at the PCC’s best estimate of market value.

Short term deposits

These are the cash held on deposit either with the CCLA, Diocesan Loans Fund or at the bank.

Page 18

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

2. Income and Endowments

2. Income and Endowments
2(a)
Donations and Legacies
Planned giving:
Gift Aid donations
CAF
Other
Collections
Donations
Gift Aid donations
CAF
Other
Tax Recoverable
Grants
Legacies
2(b)
Activities for generating funds
Parish Magazine (advertising)
Wedding Flowers
Other
2(c)
Investments
Dividends on CBF Investment Fund
Bank and WDBF Loans Fund
2(d)
Charitable activities
Fees for weddings and funerals
Non-statutory fees
Parish magazine sales
Bookstall
Payments for events
Trading activities
Letting of hall
Wednesday Lunches
Other
2(e)
Other Income
Insurance claim
Pension Refund
Interregnum
Total incoming resources		 Unrestricted
Funds 2020
£
96,765
26,050
10,216
2,242
3,440
5,000
4,294
27,728
2,255
18,500		 Restricted
Funds 2020
£
3,423
-
275
1,233
4,140
200
2,416
1,917
5,516
-		 Total
2020
£
100,188
26,050
10,491
3,475
7,580
5,200
6,710
29,645
7,771
18,500		 Unrestricted
Funds 2019
£
86,175
22,500
8,820
9,496
2,919
40
7,482
25,321
-
5,500		 Restricted
Total
Funds 2019
2019
£
£
9,033
95,208
-
22,500
225
9,045
5,685
15,181
14,815
17,734
1,050
1,090
7,050
14,532
6,064
31,385
100
100
1,750
7,250
196,490 19,120 215,610 168,253 45,772
214,025
4,766
411
19		 -
-
-		 4,766
411
19		 5,748
5,541
-		 -
5,748
-
5,541
-
-
5,196 - 5,196 11,289 -
11,289
-
451		 2,293
-		 2,293
451		 -
773		 2,227
2,227
2
775
451 2,293 2,744 773 2,229
3,002
1,852
1,375
4,711
5,959
183
1,445
1,201
43		 -
-
-
-
-
-
-
-		 1,852
1,375
4,711
5,959
183
1,445
1,201
43		 6,387
666
4,369
2,395
773
6,125
5,112
-		 -
6,387
-
666
-
4,369
-
2,395
1,459
2,232
-
6,125
-
5,112
-
-
16,769 - 16,769 25,827 1,459
27,286
-
59
-		 -
-
-		 -
59
-		 -
-
465		 -
-
583
583
-
465
59 - 59 465 583
1,048
218,965 21,413 240,378 206,607 50,043
256,650

Page 19

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

3. Expenditure On

Unrestricted
Funds 2020
£
3(a)
Raising funds
Cost of generating funds
Trading
Bookstall
2,268
Wednesday lunches
829
Flower arranging
396
Cost of fetes and other events
-
3,493
3(b)
Charitable Activities
Missionary and charitable giving
4
8,500
Ministry:
Diocesan parish share
115,152
Other ministry costs
1,224
Gas, Electric & Water
3,492
Insurance
6,684
Salaries & wages
5
21,638
Training & Mission costs
851
Stationery
3,601
Bank charges
452
Maintenance
693
Upkeep of sevices
1,374
Churchyard
691
Other running expenses
4,956
Major repairs - installation
-
Major repairs - structure
-
New Building Work
-
Other expenditure
-
Depreciation
-
Parish magazine costs
5,520
Church hall running costs
Gas & Electric
1,205
Maintenance
5,182
Depreciation
-
Other
209
181,424
Total resources expended
184,917		 Unrestricted
Funds 2020
£
3(a)
Raising funds
Cost of generating funds
Trading
Bookstall
2,268
Wednesday lunches
829
Flower arranging
396
Cost of fetes and other events
-
3,493
3(b)
Charitable Activities
Missionary and charitable giving
4
8,500
Ministry:
Diocesan parish share
115,152
Other ministry costs
1,224
Gas, Electric & Water
3,492
Insurance
6,684
Salaries & wages
5
21,638
Training & Mission costs
851
Stationery
3,601
Bank charges
452
Maintenance
693
Upkeep of sevices
1,374
Churchyard
691
Other running expenses
4,956
Major repairs - installation
-
Major repairs - structure
-
New Building Work
-
Other expenditure
-
Depreciation
-
Parish magazine costs
5,520
Church hall running costs
Gas & Electric
1,205
Maintenance
5,182
Depreciation
-
Other
209
181,424
Total resources expended
184,917		 Restricted
Funds 2020
£
-
-
-		 Total
Unrestricted
2020
Funds 2019
£
£
2,268
1,552
829
3,601
396
3,603
-
-		 Total
Unrestricted
2020
Funds 2019
£
£
2,268
1,552
829
3,601
396
3,603
-
-		 Restricted
Total
Funds 2019
2019
£
£
-
1,552
3,601
-
3,603
-
-
3,493 - 3,493 8,756 -
8,756
8,500
115,152
1,224
3,492
6,684
21,638
851
3,601
452
693
1,374
691
4,956
-
-
-
-
-
5,520
1,205
5,182
-
209		 7,313
-
411
67
-
16,359
-
-
-
2,621
472
1,271
490
-
-
-
-
13,253
-
-
-
-
-		 15,813
115,152
1,635
3,559
6,684
37,997
851
3,601
452
3,314
1,846
1,962
5,446
-
-
-
-
13,253
5,520
1,205
5,182
-
209		 13,000
110,330
1,172
7,953
6,744
25,292
332
2,843
575
1,271
1,819
540
5,987
-
-
-
-
-
5,062
1,961
2,810
-
1,904		 6,038
19,038
-
110,330
1,417
2,589
-
7,953
-
6,744
21,943
47,235
-
332
-
2,843
-
575
8,469
9,740
1,297
3,116
2,441
2,981
1,801
7,788
-
-
5,232
5,232
-
-
672
672
13,251
13,251
-
5,062
-
1,961
-
2,810
-
-
-
1,904
181,424 42,257 223,681 189,595 62,561
252,156
184,917 42,257 227,174 198,351 62,561
260,912

Page 20

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

4. Missionary and Charitable Giving

Overseas missionary and relief societies:
Aid for Romania
Bible Society
Church Mission Society
DEC (Cyclone Idai)
Leprosy Mission
Jerusalem & Middle East Church Association
Lent boxes
Open Doors
Rwanda
Sat 7
Tearfund		 Unrestricted
Funds 2020
£
-
1,000
2,500
-
-
750
-
-
1,000
-
1,000		 Restricted
Funds 2020
£
-
-
-
-
645
271
372
-
5,610
-
-		 Endowment
Funds 2020
£
-
-
-
-
-
-
-
-
-
-
-		 Total
Total
2020
2019
£
£
-
-
1,000
1,000
2,500
2,500
-
740
645
-
1,021
1,408
372
428
-
1,000
6,610
1,500
-
1,000
1,000
2,423
6,250 6,898 - 13,148
11,999
Home missions and other church societies:
Childrens' Society
Christians Against Poverty
Young Minds		 -
750
-		 -
-
54		 -
-
-		 -
307
750
750
54
-
750 54 - 804
1,057
Local charities:
Basics Bank
Bishop's Ordination Fund
Brockenhurst Day Care Centre
Naomi House
New Forest Mencap
Oakhaven Hospice
Royal British Legion		 -
-
750
-
750
-
-		 20
-
-
-
50
291
-		 -
-
-
-
-
-		 20
-
-
639
750
750
-
1,126
800
750
291
1,876
-
841
1,500 361 - 1,861
5,982
Total Missionary and charitable giving 8,500 7,313 - 15,813
19,038

Page 21

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

5. Staff Costs

Wages and salaries
National Insurance
Pension
Life Assurance
Training		 2020
2019
£
£
37,341
46,328
-
-
579
806
77
101
-
-
37,997
47,235

During year the PCC employed a Parish Administrator; Youth Worker; Family Worker; organists; sexton and cleaners for the church and hall. No employee was paid more than £60,000

6. Related Parties

No payments or expenses were paid to any PCC member, or persons closely connected to them or related parties.

Page 22

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

7. Investments

Market value at 1 January 2020
Disposal
Purchases at cost
Net gains
Market value at 31 December 2020
Units held		 St Nicholas'
Churchyard
£
53,560
-
-
3,683
57,243
2,794		 Walker
Munro
£
13,858
-
-
953
14,811
723		 Harding
Total
£
£
9,201
76,619
-
-
-
-
633
5,269
9,834
81,888
480

The St Nicholas’ Churchyard, Walker Munro and Harding endowment funds are invested in CBF Church of England Investment Fund – Income Shares.

8. Debtors and Prepayments

Debtors
Gift Aid Tax
HMRC (employment)
Diocesan Loans Fund
Other debtors
Prepayments		 Unrestricted
Funds 2020
£
777
-
61,486
4,380
66,643
583
67,226		 Restricted
Funds 2020
£
5
-
-
65
70
-
70		 Endowment
Funds 2020
£
-
-
-
-
-
-
-		 2020
2019
£
£
782
1,168
-
-
61,486
61,486
4,445
1,228
66,713
63,882
583
579
67,296
64,461
Total Funds

Page 23

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

9. Liabilities

Accruals and deferred income
Charities
Other
Creditors for goods and services
Other creditors		 Unrestricted
Funds 2020
£
-
6,961
6,961
2,543
-
9,504		 Restricted
Funds 2020
£
1,047
277
1,324
100
-
1,424		 Endowment
Funds 2020
£
-
-
-
-
-
-		 2020
2019
£
£
1,047
2,597
7,238
6,119
8,285
8,716
2,643
3,564
-
-
10,928
12,280
Total Funds

Page 24

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

10. Funds

10(a) Unrestricted Funds

General
Hall
Fabric
Music
St Nicholas' Flower Trading
St Saviour's Flower Trading
Flower (Trading)		 Balance at
1 January		 Incoming
Resources		 Resources
Expended		 Net Transfers
Balance at
31 December
67,324
-
-
-
1,279
1,315
-
69,918		 213,282
5,147
-
125
411
-
-
218,965		 (173,976)
(10,545)
-
-
(396)
-
-
(184,917)		 39,306
(5,398)
-
125
15
-
-
34,048		 (43,734)
62,896
5,398
-
30,000
30,000
-
125
(1,294)
-
(1,315)
-
2,393
2,393
(8,552)
95,414

For administrative and monitoring purposes the PCC has designated its unrestricted funds into five funds:

Page 25

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

10(b) Restricted Funds

10(b) Restricted Funds
Note
St Nicholas'
St Nicholas' Churchyard Fund Income
St Nicholas' Flower Guild
Total St Nicholas'
St Saviour's
St Saviour's AV system
Walker Munro Fund Income
St Saviour's Flower Guild
Total St Saviour's
Youth Worker
Total Youth
Brockcare
General
Christmas Lunch
Holidays at Home
Total Brockcare
Charities
4
Music
Harding Fund Income
Total other restricted funds
Hall Development
Kitchen
Carpet
Total Hall Development
Total restricted funds		 Note Balance at
1 January		 Incoming
Resources		 Resources
Expended		 Net Transfers
Balance at
31 December
14
260
191
465
-
15,850
-
-
15,850
-
-
(796)
878
816
898
105
603
4,590
5,298
11,364
1,140
12,504
35,015		 -
1,603
146
1,749
500
-
415
95
1,010
10,192
10,192
200
430
-
630
7,407
150
275
7,832
-
-
-
21,413		 (2,062)
(1,216)
(271)
(3,549)
(402)
(4,047)
(174)
(309)
(4,932)
(16,693)
(16,693)
(110)
(232)
-
(342)
(7,313)
(117)
(105)
(7,535)
(8,522)
(684)
(9,206)
(42,257)		 (2,062)
387
(125)
(1,800)
98
(4,047)
241
(214)
(3,922)
(6,501)
(6,501)
90
198
-
288
94
33
170
297
(8,522)
(684)
(9,206)
(20,844)		 2,048
-
(425)
222
-
66
1,623
288
137
235
-
11,803
74
315
217
3
428
12,356
6,501
-
6,501
-
-
(706)
-
1,076
-
816
-
1,186
-
199
-
636
-
4,760
-
5,595
-
2,842
-
456
-
3,298
8,552
22,723

There are a number of restricted funds that account for money donated for specific purposes. In 2020 these funds accounted for income of £21,413 and expenditure of £42,257. These funds include the St Saviour’s AV Fund, and the Hall Development Kitchen and Carpet Funds all of which have capitalised assets with total depreciation of £13,215 in 2020.

Specific points regarding each fund are:

Page 26

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Page 27

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

Page 28

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

10 (c) Endowment Funds

Note
St Nicholas' Churchyard
Walker Munro
Harding		 Balance at
1 January
53,560
13,858
9,201
76,619		 Incoming
Resources
-
-
-
-		 Resources
Expended
-
-
-
-		 Investment
Gains
3,683
953
633
5,269		 Transfers
Balance at
31 December
-
57,243
-
14,811
-
9,834
-
81,888

The Endowment Funds comprise

11. Fixed Assets

Cost or valuation
At beginning of the year
Additions at cost
At end of the year
Depreciation
At beginning of the year
Charge for the year
At end of the year
Net book value
At beginning of the year
At end of the year		 Kitchen
Carpet
St S AV
Total
£
£
£
£
42,612
3,420
20,117
66,149
-
-
-
-
42,612
3,420
20,117
66,149
31,248
2,280
4,268
37,796
8,522
684
4,047
13,253
39,770
2,964
8,315
51,049
11,364
1,140
15,849
28,353
2,842
456
11,802
15,100

Page 29

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2020

12. Retirement and Post-Employment Benefits

Brockenhurst PCC participates in the Pension Builder Scheme section of the Church Workers Pension Fund (CWPF) for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

Pension Builder Scheme

The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.

Pension Builder Classic provides a pension for members for payment from retirement, 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. Bonuses may also be declared, depending upon the investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.

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 pensions costs charged to the SoFA in the year are the contributions payable (2020: £579 2019: £806).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2016. A valuation as at 31 December 2019 was under way as at 31 December 2020.

For the Pension Builder Classic section, the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £1.8m 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, Brockenhurst PCC could become responsible for paying a share of that employer’s pension liabilities.

Page 30