OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-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 2021

Vicar:

Revd. Simon Newham

Page 1

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Annual Report for 2021

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

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

Page 2

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Parochial Church Council

During the period 1 January 2021 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 Deanery Synod Representatives Mr Peter Lay Treasurer Mr John Pearson Mr Martyn Taylor Elected Members Mrs Pauline Brown Mr Bob Coombs Mr Tim Dodwell Retired at 2021 APCM Mrs Liz Dodwell Retired at 2021 APCM Mrs Di Fletcher Retired at 2021 APCM Mr Martin Fletcher Mrs Jane Forrest Mr Tony Foulger Mrs Joyce Kolaczkowski Mrs Wendy Lay Mrs Janet McDonald 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.

Page 3

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

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 212 parishioners on the Church Electoral Roll at the 2021 APCM, of whom 28 were not resident in the Parish compared with 214 in 2020. The size of the worshiping community is 159 with an average weekly attendance of 116 adults and 15 children, 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.

Review of the year

Despite the ongoing impact of Covid 19 the full PCC met on its planned bi-monthly schedule throughout 2021. The meetings in January and March were held online using Zoom. The APCM in April was the first in-person meeting with the option for online attendance. The PCC committees and appointed teams returned to a more normal approach between PCC meetings as the year progressed and their reports were received by the PCC, discussed and acted on where necessary.

The key points of focus for our Church in 2021 were:

We have two church buildings – St Nicholas’ (the parish church) and St Saviour’s. Sunday services were restricted to be held only online for the first 3 months of the year reopening with the Palm Sunday service at St Saviour’s building and in July regular Sunday services resumed at St Nicholas’.

Support for our congregations

After the first 3 months’ of 2021 in-person services resumed following a revised pattern at St Saviour’s:

Page 4

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

From the start of July the Sunday 0900 Holy Communion service moved to be held at St Nicholas’ church.

Covid precautions were in place in our buildings throughout the year, with mask wearing and sanitiser use requested even when it was not mandated by the national regulations.

Throughout the year our Vicar Simon led daily Morning and Evening Prayer online using Zoom audio facilities and following the pattern suggested by the Church of England Daily Prayer programme. Holy Communion was taken to the care and residential homes in the village when Covid-19 restrictions allowed.

For the first 3 months of the year St Saviour’s services were broadcast only online returning to a ‘mixed-economy’ from Easter allowing the congregation to choose which way to attend depending on their circumstances. Throughout the year these online services have allowed us to reach some elderly and infirm people who would have been unable to attend in person even during more normal times.

The experimental ‘Open’ Service was continued through the year on a monthly basis – initially at 1700 on Sunday afternoon. This service has a less formal style and focusses on a topic such as ‘Ageing Well’ or ‘What is heaven like’ and allows for discussion as well as worship and teaching. In the autumn this service moved to 1030 on Sunday mornings on the fourth Sunday each month.

Many House-Groups continued during 2021 using online facilities or other innovative approaches (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 with the usual afternoon tea for refreshment.

Remembrance services in November resumed with another highly visible field of 1000 crocheted poppies in St Saviour’s grounds appearing to flow out from the east window..

Christmas activities were again adapted for the Coronavirus world, with two Carol Services proving popular both in person and online. On Christmas Eve and Christmas morning services were held inside this year as the weather was too poor to be outside. However numbers were limited as the resurgence of a new Covid-19 strain led people to be very cautious in the days leading up to family Christmas celebrations.

Simon Newham, our vicar, continued enthusiastically to grow our links to local primary schools using both a weekly Assembly video and in-person when restrictions allowed. Our Children and Youth coordinator successfully grew links with Brockenhurst College, leading to the start of a small but successful weekly study and fellowship group of students.

Digital Church

The church’s digital activities developed through the year with an update and refresh of the website launched after Easter. This facility allows newcomers to Brockenhurst o see our activities and provides a link point for information to the congregation. In the autumn new facilities were provided to email our weekly Spotlight information sheet to those who register together with a bi-weekly Prayer Blog.

The website also provides a central point for access to our online services, both live and historic recordings under the Virtual Church banner.

The 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’ continued when we were not able to meet in-person with interaction between attendees after the services.

A project was initiated to upgrade the ‘temporary’ audio-visual facilities in St Saviour’s to a more permanent arrangement. A successful appeal was made for funds although the subsequent Diocese Faculty application process was not completed by the close of the year.

Our role in the community

Page 5

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Brockcare – our pastoral group providing support to the vulnerable and elderly in the village continued to provide support for those shielding and isolated.

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 gradually resumed from July onwards as caution allowed.

Once again Christmas Day lunch was provided for some of the villagers who would otherwise be on their own. The lunches were generously donated by the Forest Park Hotel and supported by members of the church family who delivered the lunches to homes. A smaller group met to eat together in the Church Hall.

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.

Page 6

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

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 21 April 2021.

Overall Summary

Total income was £264,272 (before unrealised investment gains) while total expenditure was £220,487 resulting in an overall surplus of £43,785. However, this includes the following exceptional items and depreciation charges

If these are excluded the underlying surplus was £17,099 compared to an underlying surplus of £2,957 in 2020.

These figures also include money raised for charities. If these are excluded the net surplus in 2021 was £4,050 compared to a deficit of £4,356 in 2020.

Overall Expenditure

Overall expenditure was £220,487 against total income of £264,272 or £220,212 if money raised by the St Saviour’s AV appeal and money raised for charities is excluded.

Total income accounts for the following major categories of expenditure, costs and funds carried forward to 2022 were

2021 2020
Donations to charities £23,049 £15,813
Common Mission Fund £105,442 £115,152
Staff salaries (including the employment costs of the Youth Worker) £22,976 £37,997
Maintenance of both churches and the hall £14,339 £8,496
Other running costs (electricity, gas, clergy expenses, insurance etc.) £43,359 £36,463
Depreciation charges £7,345 £13,253
St Saviour’s AV Appeal income £30,531 £0
Overall surplus/(deficit) £13,254 £13,204

Page 7

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

----- Start of picture text -----
Overall Surplus
5% Donations to
charities
AV Appeal 9%
12%
Other running
costs £264,272
16% Common
Mission Fund
40%
Depreciation
3%
Maintenance
5%
Staff Salaries
10%
----- End of picture text -----

Donations to Charities

Total donations amounted to £23,049 (£10,000 from General Funds and £13,049 from money raised for specific charities). In particular, the diocese of Kigeme in Rwanda was supported by donations of £13,008; £2,500 from general funds and £10,508 raised by an appeal.

Common Mission Fund

The contribution to the Common Mission Fund was £105,422 compared to £115,152 in 2020. This represents 40% of the total income.

Staff Salaries

Staff salaries were £26,953 compared to £37,997 in 2020. The reduction of £11,044 is because there was no Youth Worker employed in 2020. However, the PCC plans to employ a family worker to be shared with the parishes of Boldre and South Baddesley for which the Brockenhurst share is expected to cost about £18,000 per year.

The caretaker’s contract was extended to include extra work in the churchyard on behalf of the Parish Council. The cost of this is reported in the staff costs and is paid for by grants received from the Parish Council.

Maintenance

Total maintenance costs were £14,339 compared to 8,496 in 2020.

2021 2020
Ordinary maintenance costs (churches) £6,554 £3,314
Ordinary maintenance costs (hall) £1,706 £5,182
Installation of LED lighting in St Saviour’s church £4,099 £0
St Saviour’s roof survey £1,980 £1,980
Page 8

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Other running costs

These are the ordinary running expenses (such as the cost of gas, electricity, insurance etc.). They amount to £43,359 (16% of total income) compared to £36,463 in 2020 an increase of 19%. In particular:

2021 2020 Increase
Bookstall £3,484 £2,268 54%
Wedding flowers £2,043 £396 416%
Parish Magazine £7,603 £5,520 38%

The increase in bookstall costs is mainly due to the cost of printing additional copies of John Purkess’ books By-Gone Brockenhurst. The increase in wedding flowers is due to the increased number of weddings in 2021 compared to 2020 as we come out of the Covid-19 Pandemic (these costs are covered by the income generated of £2,520).

St Saviour’s AV Appeal

The AV appeal raised £30,531 which represents 12% of total income. There was no expenditure on the AV system because the PCC is waiting for the appropriate permission from the diocese. Consequently, the entire sun raised is carried forward to 2022.

Overall Surplus

The overall surplus, carried forward to 2022, was £13,254 which represents 5% of total income.

Overall Income

Income comes mainly from donations and the associated Gift Aid claimed from HMRC. Income was boosted in 2021 by:

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

Page 9

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

----- Start of picture text -----
Investment income
1%
Activities for
generating funds
4% Charitable
activities
Legacies 10%
1%
Grants
2%
Gift Aid
11% Planned
51%
Collections
1%
Unplanned
19%
----- End of picture text -----

The broad categories of income were:

2021 2020 Change
Planned £133,437 £136,729 -2%
Unplanned £48,718 £19,490 150%
Collections £3,128 £3,475 -10%
Gift Aid £30,020 £29,645 1%
Grants £4,642 £7,771 -40%
Legacies £3,500 £18,500 -81%
Activities for generating funds £9,088 £5,196 75%
Investment income £2,826 £2,744 3%
Charitable activities £27,118 £16,769 62%
Other income £1,795 £59

Unplanned income includes money raised by the Rwanda and St Saviour’s AV appeals (a total of £41,039). If this is excluded the total income is £221,438 compared to £234,709 received in 2020, a reduction of 6%.

Page 10

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Appeals

During 2021 two appeals were held to

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:

In addition money is also available from:

Comparison with Previous Years

Excluding depreciation charges and appeal income there was a surplus of £20,029 in 2021 compared to £26,160 in 2020 as shown in the graph below which shows the overall surplus or deficit for the years 2013 to 2021. This was boosted by extraordinary income in 2020 from:

2021 2020
Legacies £3,500 £18,500
One-off donations £0 £5,000

If these are excluded the overall surplus before depreciation is £16,529 in 2021 compared to £2,660 in 2020.

Page 11

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

----- Start of picture text -----
Annual net surplus/deficit excluding
depreciation and appeals
£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 2021
----- End of picture text -----

Looking Forward

The PCC has agreed to increase its expenditure to:

In the short term these will be funded from:

Reserves

The reserves policy is 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 total cash reserves held on 31 December 2021 were £90,668 (£29,182 plus £61,486 deposited in the Diocesan Loans Fund) with an additional £2,849 held in the flower funds. The average monthly cash expenditure in 2021 was £18,791 for which the reserves policy requires a reserve of £56,373. Consequently, the surplus reserves at 31 December 2021 available to spend while maintaining the reserve required by the policy is £34,295.

Page 12

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Conclusions

Although the continuation of the Covid-19 Pandemic meant the churches were only partially open the year ended in a surplus. Two appeals were held. One to support the diocese of Kigeme in Rwanda and one to raise funds to enhance and extend the capabilities of the Audio Video (AV) system in St Saviour’s church. Both of these met with a generous response, as reported in these accounts, and the AV appeal exceeded its target.

After a number of years during which net ordinary income was on average zero we have now had two years with a surplus. However, the PCC is embarking on a period of extra expenditure in order to employ a Family Worker and to pay for the repairs identified by the quinquennial survey. In addition ordinary expenditure is likely to rise as a result of inflation. Cost pressures will require careful monitoring of expenditure and income will need to grow with inflation.

Page 13

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

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 2021 have been prepared in accordance with the relevant Church Accounting Regulations, applicable Accounting Standards and Statement of Recommended Practice (FRS 102) 2015.

Page 14

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Independent Examiner’s Report to Brockenhurst PCC

We report on the accounts for the year ended 31 December 2021 which are set out on pages 16 to 32.

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

March 2022

Page 15

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Statement of Financial Activities for the year ended 31 December 2021

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 2021
£
174,748
9,088
451
27,118
1,795		 Restricted
Funds 2021
£
48,697
-
2,375
-
-		 Endowment
Funds 2021
£
-
-
-
-
-		 Total
2021
£
223,445
9,088
2,826
27,118
1,795		 Unrestricted
Funds 2020
£
196,490
5,196
451
16,769
59		 Restricted
Funds 2020
£
19,120
-
2,293
-
-		 Endowment
Total
Funds 2020
2020
£
£
-
215,610
-
5,196
-
2,744
-
16,769
-
59
Total 213,200 51,072 - 264,272 218,965 21,413 -
240,378
Expenditure on:
Raising funds
3(a)
Charitable activities
3(b)		 6,629
187,918		 736
25,204		 -
-		 7,365
213,122		 3,493
181,424		 -
42,257		 -
3,493
-
223,681
Total 194,547 25,940 - 220,487 184,917 42,257 -
227,174
Net Income/(Expenditure)
Transfers between Funds
Other recognised gains/(losses)
Gains/(losses) on investments
7		 18,653
-
-		 25,132
-
-		 -
-
11,715		 43,785
-
11,715		 34,048
(8,552)
-		 (20,844)
8,552
-		 -
13,204
-
-
5,269
5,269
Net Movement in Funds 18,653 25,132 11,715 55,500 25,496 (12,292) 5,269
18,473
Balances brought forward at 1
January		 95,414 22,723 81,888 200,025 69,918 35,015 76,619
181,552
Balances carried forward at 31
December		 114,067 47,855 93,603 255,525 95,414 22,723 81,888
200,025

The notes on pages 19 to 32 form part of these accounts

Page 16

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Balance sheet at 31 December 2021

Note
FIXED ASSETS
Tangible assets
Investment assets: Endowment fund investments
6		 Unrestricted
Funds 2021
£
-
-		 Restricted
Funds 2021
£
7,755
-		 Endowment
Funds 2021
£
-
93,603		 Total Funds
2021
£
7,755
93,603		 Unrestricted
Funds 2020
£
-
-		 Restricted
Funds 2020
£
15,100
-		 Endowment
Total Funds
Funds 2020
2020
£
£
-
15,100
81,888
81,888
- 7,755 93,603 101,358 - 15,100 81,888
96,988
CURRENT ASSETS
Stock
Investments
Debtors and prepayments
8
Short-term deposists
Cash at bank and in hand		 1,900
-
64,219
-
62,631		 -
-
434
-
41,780		 -
-
-
-
-		 1,900
-
64,653
-
104,411		 1,442
-
67,226
-
36,250		 -
-
70
-
8,977		 -
1,442
-
-
-
67,296
-
-
-
45,227
Total current assets 128,750 42,214 - 170,964 104,918 9,047 -
113,965
LIABILITIES
Creditors - amounts falling due within one year
9		 14,683 2,114 - 16,797 9,504 1,424 -
10,928
Net current assets/(liabilities) 114,067 40,100 - 154,167 95,414 7,623 -
103,037
Total assets less current liabilities
Creditors - amounts falling due after one year		 114,067
-		 47,855
-		 93,603
-		 255,525
-		 95,414
-		 22,723
-		 81,888
200,025
-
-
Total net assets 114,067 47,855 93,603 255,525 95,414 22,723 81,888
200,025
PARISH FUNDS
Unrestricted
10(a)
Restricted
10(b)
Endowment
10(c)		 114,067 47,855 93,603 114,067
47,855
93,603		 95,414 22,723 95,414
22,723
81,888
81,888
114,067 47,855 93,603 255,525 95,414 22,723 81,888
200,025

The notes on pages 19 to 32 form part of this account

Page 17

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Cash flow statement at 31 December 2021

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 2021 End 2021
End 2020
End 2020
56,358
18,883
2,744
-
2,826
2,744
59,184
21,627
45,227
23,600
104,411
45,227
43,785
13,204
7,345
13,253
(2,826)
(2,744)
(458)
(643)
2,643
(2,835)
5,869
(1,352)
56,358
18,883
104,411
45,227
-
-
104,411
45,227
2,826
-

The notes on pages 19 to 32 form part of this account

Approved by the Parochial Church Council on 28 March 2022 and signed on its behalf by: Revd Simon Newham (Chairman), Mr Peter Lay (Treasurer)

Page 18

Notes to the financial statements for the year ended 31 December 2021

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.

Page 19

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

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 20

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

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
Covid-19 SSP refund
Advertising refund
Total incoming resources		 Unrestricted
Funds 2021
£
89,055
25,050
19,134
1,582
4,506
-
5,243
25,686
4,492
-		 Restricted
Funds 2021
£
87
-
111
1,546
15,623
13,200
10,146
4,334
150
3,500		 Total
2021
£
89,142
25,050
19,245
3,128
20,129
13,200
15,389
30,020
4,642
3,500		 Unrestricted
Funds 2020
£
96,765
26,050
10,216
2,242
3,440
5,000
4,294
27,728
2,255
18,500		 Restricted
Total
Funds 2020
2020
£
£
3,423
100,188
-
26,050
275
10,491
1,233
3,475
4,140
7,580
200
5,200
2,416
6,710
1,917
29,645
5,516
7,771
-
18,500
174,748 48,697 223,445 196,490 19,120
215,610
5,649
2,520
919		 -
-
-		 5,649
2,520
919		 4,766
411
19		 -
4,766
-
411
-
19
9,088 - 9,088 5,196 -
5,196
-
451		 2,375
-		 2,375
451		 -
451		 2,293
2,293
-
451
451 2,375 2,826 451 2,293
2,744
4,552
4,460
4,858
9,320
730
967
2,229
2		 -
-
-
-
-
-
-
-		 4,552
4,460
4,858
9,320
730
967
2,229
2		 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
27,118 - 27,118 16,769 -
16,769
1,660
135
-		 -
-
-		 1,660
135
-		 -
-
59		 -
-
-
-
-
59
1,795 - 1,795 59 -
59
213,200 51,072 264,272 218,965 21,413
240,378

Page 21

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

3. Expenditure On

Unrestricted
Funds 2021
£
3(a)
Raising funds
Cost of generating funds
Trading
Bookstall
3,484
Wednesday lunches
1,102
Flower arranging
2,043
Cost of fetes and other events
-
6,629
3(b)
Charitable Activities
Missionary and charitable giving
4
10,000
Ministry:
Diocesan parish share
105,442
Other ministry costs
1,230
Gas, Electric & Water
4,465
Telephones
896
Insurance
6,694
Salaries & wages
5
26,845
Training & Mission costs
251
Stationery
4,256
Bank charges
660
Maintenance
5,098
Upkeep of sevices
1,171
Churchyard
1,086
Other running expenses
4,342
Major repairs - installation
4,099
Major repairs - structure
-
New Building Work
-
Depreciation
-
Parish magazine costs
7,603
Church hall running costs
Gas & Electric
1,630
Maintenance
1,706
Other
444
187,918
Total resources expended
194,547		 Unrestricted
Funds 2021
£
3(a)
Raising funds
Cost of generating funds
Trading
Bookstall
3,484
Wednesday lunches
1,102
Flower arranging
2,043
Cost of fetes and other events
-
6,629
3(b)
Charitable Activities
Missionary and charitable giving
4
10,000
Ministry:
Diocesan parish share
105,442
Other ministry costs
1,230
Gas, Electric & Water
4,465
Telephones
896
Insurance
6,694
Salaries & wages
5
26,845
Training & Mission costs
251
Stationery
4,256
Bank charges
660
Maintenance
5,098
Upkeep of sevices
1,171
Churchyard
1,086
Other running expenses
4,342
Major repairs - installation
4,099
Major repairs - structure
-
New Building Work
-
Depreciation
-
Parish magazine costs
7,603
Church hall running costs
Gas & Electric
1,630
Maintenance
1,706
Other
444
187,918
Total resources expended
194,547		 Restricted
Funds 2021
£
-
-
736		 Total
Unrestricted
2021
Funds 2020
£
£
3,484
2,268
1,102
829
2,043
396
736
-		 Total
Unrestricted
2021
Funds 2020
£
£
3,484
2,268
1,102
829
2,043
396
736
-		 Restricted
Total
Funds 2020
2020
£
£
-
2,268
829
-
396
-
-
6,629 736 7,365 3,493 -
3,493
10,000
105,442
1,230
4,465
896
6,694
26,845
251
4,256
660
5,098
1,171
1,086
4,342
4,099
-
-
-
7,603
1,630
1,706
444		 13,049
-
159
-
-
-
108
-
-
-
1,456
307
724
76
-
1,980
-
7,345
-
-
-
-		 23,049
105,442
1,389
4,465
896
6,694
26,953
251
4,256
660
6,554
1,478
1,810
4,418
4,099
1,980
-
7,345
7,603
1,630
1,706
444		 8,500
115,152
1,224
3,492
774
6,684
21,638
851
3,601
452
693
1,374
691
4,182
-
-
-
-
5,520
1,205
5,182
209		 7,313
15,813
-
115,152
411
1,635
-
67
3,559
-
774
-
6,684
16,359
37,997
-
851
-
3,601
-
452
2,621
3,314
472
1,846
1,271
1,962
490
4,672
-
-
-
-
-
-
13,253
13,253
-
5,520
-
1,205
-
5,182
-
209
187,918 25,204 213,122 181,424 42,257
223,681
194,547 25,940 220,487 184,917 42,257
227,174

Page 22

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

4. Missionary and Charitable Giving

Overseas missionary and relief societies:
Bible Society
Church Mission Society
Embrace the Middle East
Leprosy Mission
Jerusalem & Middle East Church Association
Lent boxes
Rwanda
Sat 7
Tearfund		 Unrestricted
Funds 2021
£
1,000
2,500
-
-
750
-
2,500
500
1,000		 Restricted
Funds 2021
£
-
79
367
-
-
796
10,508
-
-		 Endowment
Funds 2021
£
-
-
-
-
-
-
-
-
-		 Total
Total
2021
2020
£
£
1,000
1,000
2,579
2,500
367
-
-
645
750
1,021
796
372
13,008
6,610
500
-
1,000
1,000
8,250 11,750 - 20,000
13,148
Home missions and other church societies:
Childrens' Society
Christians Against Poverty
Mission to Seafarers
UCCF
Young Minds		 -
750
-
500
-		 326
-
283
139
-		 -
-
-
-
-		 326
-
750
750
283
-
639
-
-
54
1,250 748 - 1,998
804
Local charities:
Basics Bank
Brockenhurst Day Care Centre
Brockenhurst Gateway (New Forest Mencap)
Oakhaven Hospice		 -
-
500
-		 184
-
-
367		 -
-
-
-		 184
20
-
750
500
800
367
291
500 551 - 1,051
1,861
Total Missionary and charitable giving 10,000 13,049 - 23,049
15,813

Page 23

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

5. Staff Costs

Wages and salaries
National Insurance
Pension
Life Assurance
Training		 2021
2020
£
£
26,827
37,341
-
-
116
579
10
77
-
-
26,953
37,997

During year the PCC employed a Parish Administrator; organists; caretaker 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 24

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

7. Investments

Market value at 1 January 2021
Disposal
Purchases at cost
Net gains
Market value at 31 December 2021
Units held		 St Nicholas'
Churchyard
£
57,243
-
-
8,189
65,432
2,794		 Walker
Munro
£
14,811
-
-
2,119
16,930
723		 Harding
Total
£
£
9,834
81,888
-
-
-
-
1,407
11,715
11,241
93,603
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 2021
£
1,824
-
61,569
726
64,119
100
64,219		 Restricted
Funds 2021
£
433
-
-
1
434
-
434		 Endowment
Funds 2021
£
-
-
-
-
-
-
-		 2021
2020
£
£
2,257
782
-
-
61,569
61,486
727
4,445
64,553
66,713
100
583
64,653
67,296
Total Funds

Page 25

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

9. Liabilities

Accruals and deferred income
Charities
Other
Creditors for goods and services
Other creditors		 Unrestricted
Funds 2021
£
-
8,926
8,926
5,757
-
14,683		 Restricted
Funds 2021
£
957
92
1,049
1,065
-
2,114		 Endowment
Funds 2021
£
-
-
-
-
-
-		 2021
2020
£
£
957
1,047
9,018
7,238
9,975
8,285
6,822
2,643
-
-
16,797
10,928
Total Funds

Page 26

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

10. Funds

10(a) Unrestricted Funds

Balance at
1 January		 Incoming
Resources		 Resources
Expended		 Net Transfers
Balance at
31 December
General
Hall
Fabric
Music
St Nicholas' Flower Trading
St Saviour's Flower Trading
Flower (Trading)		 62,896
-
30,000
125
-
-
2,393
95,414		 205,646
4,559
-
475
-
-
2,520
213,200		 (184,266)
(8,218)
-
-
-
-
(2,063)
(194,547)		 21,380
(3,659)
-
475
-
-
457
18,653		 -
84,276
-
(3,659)
-
30,000
-
600
-
-
-
-
-
2,850
-
114,067

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

Page 27

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

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
Flower Pot
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
-
222
66
288
235
11,803
315
3
12,356
-
-
(706)
1,076
816
1,186
199
-
636
4,760
5,595
2,842
456
3,298
22,723		 1,000
1,660
180
2,840
2,500
30,531
430
206
33,667
220
220
25
43
368
436
13,529
95
-
285
13,909
-
-
-
51,072		 (917)
-
(354)
(1,271)
(2,758)
(4,047)
(270)
(19)
(7,094)
(159)
(159)
(43)
(73)
(663)
(779)
(13,049)
-
(185)
(105)
(13,339)
(2,842)
(456)
(3,298)
(25,940)		 83
1,660
(174)
1,569
(258)
26,484
160
187
26,573
61
61
(18)
(30)
(295)
(343)
480
95
(185)
180
570
(2,842)
(456)
(3,298)
25,132		 -
83
-
1,882
108
-
108
1,965
23
-
-
38,287
(23)
452
(190)
-
(190)
38,739
-
61
-
61
-
(724)
-
1,046
-
521
-
843
-
679
82
177
-
451
-
4,940
82
6,247
-
-
-
-
-
-
-
47,855

There are a number of restricted funds that account for money donated for specific purposes. In 2021 these funds accounted for income of £51,072 and expenditure of £25,940. 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 £7,345 in 2021.

Specific points regarding each fund are:

Page 28

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Page 29

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

Page 30

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

10 (c) Endowment Funds

Note
St Nicholas' Churchyard
Walker Munro
Harding		 Balance at
1 January
57,243
14,811
9,834
81,888		 Incoming
Resources
-
-
-
-		 Resources
Expended
-
-
-
-		 Investment
Gains
8,189
2,119
1,407
11,715		 Transfers
Balance at
31 December
-
65,432
-
16,930
-
11,241
-
93,603

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
39,770
2,964
8,315
51,049
2,842
456
4,047
7,345
42,612
3,420
12,362
58,394
2,841
456
11,805
15,102
-
-
7,755
7,755

Page 31

Brockenhurst Parochial Church Council – Annual Report for the year ended 31 December 2021

12. Retirement and Post-Employment Benefits

Brockenhurst PCC 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;

  3. a. a deferred annuity section known as Pension Builder Classic, and,

  4. 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 pensions costs charged to the SoFA in the year are the contributions payable (2021: £116, 2020: £618).

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 2019. The next valuation is due as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m 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, Brockenhurst PCC could become responsible for paying a share of the failed employer’s pension liabilities.

Page 32