**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 



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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 

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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. 

- **Standing Committee** : The Standing Committee has the power to transact the business of the PCC between its meetings, subject to any directions given by the PCC.  The Standing Committee comprises the: Vicar, Church Wardens, Treasurer, PCC Secretary, and another member of the PCC; 

- **Children and Youth Team** : Seeks God’s heart and vision for our children and youth work. The team encourages the children and young people in their faith and supports the leaders and helpers in their work; 

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

- **Fabric Team** : Manages the maintenance and development of the two church buildings, hall and the church grounds; 

- **Finance Team** : Assists the Treasurer with the development of the annual PCC budget; reviews and monitors the state of the PCC’s finances; and assists the treasurer with the development of appropriate financial policies for approval by the PCC; 

- **Hall Committee** : Manages the running of the Church Hall adjacent to St. Saviour's Church; 

- **Mission Team** : Promotes the support of the wider church, both at home and overseas; 

- **Pastoral Team** : Seeks to support the elderly and lonely, the sick and vulnerable, and the bereaved within the Parish through pastoral visiting; 

- **Prayer Team** : Prayer ministry restarted in September 2021 and is offered twice monthly during the 10:30 service at St Saviour’s; 

- **Social Committee** : Organises and manages the social activities within the Parish, ranging from lunches and BBQ's to an annual Newcomers' Evening and a Summer Celebration event; and 

- **Worship Team** : Plans the services and patterns of worship in both churches, in co-operation with the Vicar. 

- **Eco Team** : Seeks to raise awareness of the link between environmental issues and the Christian faith, and to respond with practical action in the Church itself, in the lives of individuals within the church, and in the local and global community. 

## **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: 

- Continuing support for our congregations under pandemic precautions 

- Opening St Nicholas church (and from June St Saviour’s church) each day as a place for private prayer 

- Operating services cautiously to protect and reassure 

- Digital Church – interactive broadcast of services online with recordings available 

- Renewing our community work as regulations allowed 

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: 

- Sunday 0900 Holy Communion (BCP on first Sunday of month) 

- Sunday 1030 Sunday Worship (Holy Communion on third Sunday) 

- Thursday 1000 Holy Communion 

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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** 

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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. 

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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 

- Legacies of £3,500 

- Income raised by the St Saviours AV appeal of £30,531 

- Depreciation charges of £7,345 

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|



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


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


## _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: 

- Legacies of £3,500 

- Covid-19 appeal for Kigeme diocese, Rwanda which raised £10,508 

- St Saviour’s AV appeal which raised £30,531 

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

- 82% of income came from donations including Gift Aid claimed on donations 

- 51% of income came from planned, regular donations given through 

   - Parish Giving Scheme 

   - Standing Orders 

   - Charities Aid Foundation (CAF) 

   - Other regular donations 

- 11% of income comes from Gift Aid claimed on donations 

- 3% came from Legacies and grants (Covid-19 JRS and Parish Council) 

- 10% came from charitable activities. This includes things such as fees received for weddings and funerals, trading activities and the parish magazine sales. 

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


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


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%. 

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

## **Appeals** 

During 2021 two appeals were held to 

- Help support the diocese of Kigeme in Rwanda from the impact of the Covi-19 Pandemic. This raised £10,508. 

- Raise funds to enhance the Audio Video system in St Saviour’s church by installing projectors and screens, and cameras to support online streaming of services. This raised £30,531 

## **Ordinary Activities** 

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

- The Common Mission Fund (Parish Share) 

- Youth Work 

- Maintenance on the two church buildings (St Saviour’s and St Nicholas’) the church hall, and the churchyards 

- Charitable giving from general income 

- Other running expenses e.g. gas, electricity, insurance and salaries. 

- Mission to the parish e.g. Brockcare activities 

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

- The General Fund 

- The Hall Management Fund 

- The Youth Work Fund 

- The St Nicholas Fund 

- The St Nicholas Churchyard Income Fund 

- The St Saviour’s Fund 

- The Brockcare funds 

In addition money is also available from: 

- The flower funds which are used to fund the provision of flowers in the two churches 

- The Walker Munro Income Fund 

## **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. 

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


**----- Start of picture text -----**<br>
Annual net surplus/deficit excluding<br>depreciation and appeals<br>£30,000.00<br>£25,000.00<br>£20,000.00<br>£15,000.00<br>£10,000.00<br>£5,000.00<br>£0.00<br>(£5,000.00)<br>(£10,000.00)<br>(£15,000.00)<br>2013 2014 2015 2016 2017 2018 2019 2020 2021<br>**----- End of picture text -----**<br>


## **Looking Forward** 

The PCC has agreed to increase its expenditure to: 

- Pay for a Family Worker shared with the parishes of Boldre and South Baddesley for a period of three years. The Brockenhurst share of this will be about £18,000 per year. 

- Pay for the repairs to St Saviour’s roof identified in the Quinquennial survey. This is expected to cost in the region of £45,000 

- Pay for other repairs identified by the Quinquennial survey 

In the short term these will be funded from: 

- The Quinquennial Fabric Fund which is £30,000 put aside to pay for Quinquennial repairs 

- Funds accumulated from previous surpluses 

- The reserves 

## **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 

- A sudden loss of income 

- Any major repairs that need to be funded urgently 

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. 

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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. 

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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: 

- Select suitable accounting policies and then apply them consistently; 

- Observe the methods and principles in the Charities Statement of Recommend Practice (SORP); 

- Make judgements and estimates that are reasonable and prudent; 

- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- Prepare financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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. 

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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: 

- Examine the accounts under section 145 of the 2011 Act; 

- Follow the procedures laid down in the General Directions given by the Charity Commissioners section 145(5)(b) of the 2011 Act; and 

- State whether particular matters have come to our attention. 

## **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 

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

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

2. 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 

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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<br>**Income and Endowments from:**<br>Donations and Legacies<br>2(a)<br>Other trading activities<br>2(b)<br>Investments<br>2(c)<br>Charitable activities<br>2(d)<br>Other Income<br>2(e )|Unrestricted<br>Funds 2021<br>£<br>174,748<br>9,088<br>451<br>27,118<br>1,795|Restricted<br>Funds 2021<br>£<br>48,697<br>-<br>2,375<br>-<br>-|Endowment<br>Funds 2021<br>£<br>-<br>-<br>-<br>-<br>-|Total<br>2021<br>£<br>223,445<br>9,088<br>2,826<br>27,118<br>1,795|Unrestricted<br>Funds 2020<br>£<br>196,490<br>5,196<br>451<br>16,769<br>59|Restricted<br>Funds 2020<br>£<br>19,120<br>-<br>2,293<br>-<br>-|Endowment<br>Total<br>Funds 2020<br>2020<br>£<br>£<br>-<br>215,610<br>-<br>5,196<br>-<br>2,744<br>-<br>16,769<br>-<br>59|
|---|---|---|---|---|---|---|---|
|**Total**|213,200|51,072|-|264,272|218,965|21,413|-<br>240,378|
|**Expenditure on:**<br>Raising funds<br>3(a)<br>Charitable activities<br>3(b)|6,629<br>187,918|736<br>25,204|-<br>-|7,365<br>213,122|3,493<br>181,424|-<br>42,257|-<br>3,493<br>-<br>223,681|
|**Total**|194,547|25,940|-|220,487|184,917|42,257|-<br>227,174|
|**Net Income/(Expenditure)**<br>**Transfers between Funds**<br>**Other recognised gains/(losses)**<br>Gains/(losses) on investments<br>7|18,653<br>-<br>-|25,132<br>-<br>-|-<br>-<br>11,715|43,785<br>-<br>11,715|34,048<br>(8,552)<br>-|(20,844)<br>8,552<br>-|-<br>13,204<br>-<br>-<br>5,269<br>5,269|
|**Net Movement in Funds**|18,653|25,132|11,715|55,500|25,496|(12,292)|5,269<br>18,473|
|Balances brought forward at 1<br>January|95,414|22,723|81,888|200,025|69,918|35,015|76,619<br>181,552|
|**Balances carried forward at 31**<br>**December**|114,067|47,855|93,603|255,525|95,414|22,723|81,888<br>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<br>**FIXED ASSETS**<br>Tangible assets<br>Investment assets: Endowment fund investments<br>6|Unrestricted<br>Funds 2021<br>£<br>-<br>-|Restricted<br>Funds 2021<br>£<br>7,755<br>-|Endowment<br>Funds 2021<br>£<br>-<br>93,603|Total Funds<br>2021<br>£<br>7,755<br>93,603|Unrestricted<br>Funds 2020<br>£<br>-<br>-|Restricted<br>Funds 2020<br>£<br>15,100<br>-|Endowment<br>Total Funds<br>Funds 2020<br>2020<br>£<br>£<br>-<br>15,100<br>81,888<br>81,888|
|---|---|---|---|---|---|---|---|
||-|7,755|93,603|101,358|-|15,100|81,888<br>96,988|
|**CURRENT ASSETS**<br>Stock<br>Investments<br>Debtors and prepayments<br>8<br>Short-term deposists<br>Cash at bank and in hand|1,900<br>-<br>64,219<br>-<br>62,631|-<br>-<br>434<br>-<br>41,780|-<br>-<br>-<br>-<br>-|1,900<br>-<br>64,653<br>-<br>104,411|1,442<br>-<br>67,226<br>-<br>36,250|-<br>-<br>70<br>-<br>8,977|-<br>1,442<br>-<br>-<br>-<br>67,296<br>-<br>-<br>-<br>45,227|
|**Total current assets**|128,750|42,214|-|170,964|104,918|9,047|-<br>113,965|
|**LIABILITIES**<br>Creditors - amounts falling due within one year<br>9|14,683|2,114|-|16,797|9,504|1,424|-<br>10,928|
|**Net current assets/(liabilities)**|114,067|40,100|-|154,167|95,414|7,623|-<br>103,037|
|**Total assets less current liabilities**<br>Creditors - amounts falling due after one year|114,067<br>-|47,855<br>-|93,603<br>-|255,525<br>-|95,414<br>-|22,723<br>-|81,888<br>200,025<br>-<br>-|
|**Total net assets**|114,067|47,855|93,603|255,525|95,414|22,723|81,888<br>200,025|
|**PARISH FUNDS**<br>Unrestricted<br>10(a)<br>Restricted<br>10(b)<br>Endowment<br>10(c)|114,067|47,855|93,603|114,067<br>47,855<br>93,603|95,414|22,723|95,414<br>22,723<br>81,888<br>81,888|
||114,067|47,855|93,603|255,525|95,414|22,723|81,888<br>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<br>Cash flows from investing activities<br>Dividends, interest and rent from investments<br>Purchase of:<br>Tangible fixed assets for use of the PCC<br>Change in cash and cash equivalents in the reporting period<br>Cash and cash eqivalents at 1 January<br>Cash and cash equivalents at 31 December<br>Reconciliation of net income/(expenditure) before investment gains<br>Net income before investment gains at 31 December<br>Adjustments for:<br>Depreciation charges<br>Dividends, interest and rent from investments<br>Decrease/(Increase) in stock<br>Decrease/(increase) in debtors<br>(Decrease)/Increase in creditors<br>Net cash provided by/(used in) operating activities<br>Analysis of cash and cash equivalents<br>Cash in hand<br>Notice deposits (less than 3 months)|End 2021|End 2021<br>End 2020<br>End 2020<br>56,358<br>18,883<br>2,744<br>-<br>2,826<br>2,744<br>59,184<br>21,627<br>45,227<br>23,600<br>104,411<br>45,227<br>43,785<br>13,204<br>7,345<br>13,253<br>(2,826)<br>(2,744)<br>(458)<br>(643)<br>2,643<br>(2,835)<br>5,869<br>(1,352)<br>56,358<br>18,883<br>104,411<br>45,227<br>-<br>-<br>104,411<br>45,227|
|---|---|---|
||2,826<br>-||



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)<br>Donations and Legacies<br>Planned giving:<br>Gift Aid donations<br>CAF<br>Other<br>Collections<br>Donations<br>Gift Aid donations<br>CAF<br>Other<br>Tax Recoverable<br>Grants<br>Legacies<br>2(b)<br>Activities for generating funds<br>Parish Magazine (advertising)<br>Wedding Flowers<br>Other<br>2(c)<br>Investments<br>Dividends on CBF Investment Fund<br>Bank and WDBF Loans Fund<br>2(d)<br>Charitable activities<br>Fees for weddings and funerals<br>Non-statutory fees<br>Parish magazine sales<br>Bookstall<br>Payments for events<br>Trading activities<br>Letting of hall<br>Wednesday Lunches<br>Other<br>2(e)<br>Other Income<br>Insurance claim<br>Covid-19 SSP refund<br>Advertising refund<br>Total incoming resources|Unrestricted<br>Funds 2021<br>£<br>89,055<br>25,050<br>19,134<br>1,582<br>4,506<br>-<br>5,243<br>25,686<br>4,492<br>-|Restricted<br>Funds 2021<br>£<br>87<br>-<br>111<br>1,546<br>15,623<br>13,200<br>10,146<br>4,334<br>150<br>3,500|Total<br>2021<br>£<br>89,142<br>25,050<br>19,245<br>3,128<br>20,129<br>13,200<br>15,389<br>30,020<br>4,642<br>3,500|Unrestricted<br>Funds 2020<br>£<br>96,765<br>26,050<br>10,216<br>2,242<br>3,440<br>5,000<br>4,294<br>27,728<br>2,255<br>18,500|Restricted<br>Total<br>Funds 2020<br>2020<br>£<br>£<br>3,423<br>100,188<br>-<br>26,050<br>275<br>10,491<br>1,233<br>3,475<br>4,140<br>7,580<br>200<br>5,200<br>2,416<br>6,710<br>1,917<br>29,645<br>5,516<br>7,771<br>-<br>18,500|
||174,748|48,697|223,445|196,490|19,120<br>215,610|
||5,649<br>2,520<br>919|-<br>-<br>-|5,649<br>2,520<br>919|4,766<br>411<br>19|-<br>4,766<br>-<br>411<br>-<br>19|
||9,088|-|9,088|5,196|-<br>5,196|
||-<br>451|2,375<br>-|2,375<br>451|-<br>451|2,293<br>2,293<br>-<br>451|
||451|2,375|2,826|451|2,293<br>2,744|
||4,552<br>4,460<br>4,858<br>9,320<br>730<br>967<br>2,229<br>2|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|4,552<br>4,460<br>4,858<br>9,320<br>730<br>967<br>2,229<br>2|1,852<br>1,375<br>4,711<br>5,959<br>183<br>1,445<br>1,201<br>43|-<br>1,852<br>-<br>1,375<br>-<br>4,711<br>-<br>5,959<br>-<br>183<br>-<br>1,445<br>-<br>1,201<br>-<br>43|
||27,118|-|27,118|16,769|-<br>16,769|
||1,660<br>135<br>-|-<br>-<br>-|1,660<br>135<br>-|-<br>-<br>59|-<br>-<br>-<br>-<br>-<br>59|
||1,795|-|1,795|59|-<br>59|
|||||||
||213,200|51,072|264,272|218,965|21,413<br>240,378|



Page 21 



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

## **3. Expenditure On** 

|Unrestricted<br>Funds 2021<br>£<br>**3(a)**<br>**Raising funds**<br>Cost of generating funds<br>Trading<br>Bookstall<br>3,484<br>Wednesday lunches<br>1,102<br>Flower arranging<br>2,043<br>Cost of fetes and other events<br>-<br>6,629<br>**3(b)**<br>**Charitable Activities**<br>Missionary and charitable giving<br>4<br>10,000<br>Ministry:<br>Diocesan parish share<br>105,442<br>Other ministry costs<br>1,230<br>Gas, Electric & Water<br>4,465<br>Telephones<br>896<br>Insurance<br>6,694<br>Salaries & wages<br>5<br>26,845<br>Training & Mission costs<br>251<br>Stationery<br>4,256<br>Bank charges<br>660<br>Maintenance<br>5,098<br>Upkeep of sevices<br>1,171<br>Churchyard<br>1,086<br>Other running expenses<br>4,342<br>Major repairs - installation<br>4,099<br>Major repairs - structure<br>-<br>New Building Work<br>-<br>Depreciation<br>-<br>Parish magazine costs<br>7,603<br>Church hall running costs<br>Gas & Electric<br>1,630<br>Maintenance<br>1,706<br>Other<br>444<br>187,918<br>**Total resources expended**<br>194,547|Unrestricted<br>Funds 2021<br>£<br>**3(a)**<br>**Raising funds**<br>Cost of generating funds<br>Trading<br>Bookstall<br>3,484<br>Wednesday lunches<br>1,102<br>Flower arranging<br>2,043<br>Cost of fetes and other events<br>-<br>6,629<br>**3(b)**<br>**Charitable Activities**<br>Missionary and charitable giving<br>4<br>10,000<br>Ministry:<br>Diocesan parish share<br>105,442<br>Other ministry costs<br>1,230<br>Gas, Electric & Water<br>4,465<br>Telephones<br>896<br>Insurance<br>6,694<br>Salaries & wages<br>5<br>26,845<br>Training & Mission costs<br>251<br>Stationery<br>4,256<br>Bank charges<br>660<br>Maintenance<br>5,098<br>Upkeep of sevices<br>1,171<br>Churchyard<br>1,086<br>Other running expenses<br>4,342<br>Major repairs - installation<br>4,099<br>Major repairs - structure<br>-<br>New Building Work<br>-<br>Depreciation<br>-<br>Parish magazine costs<br>7,603<br>Church hall running costs<br>Gas & Electric<br>1,630<br>Maintenance<br>1,706<br>Other<br>444<br>187,918<br>**Total resources expended**<br>194,547|Restricted<br>Funds 2021<br>£<br>-<br>-<br>736|Total<br>Unrestricted<br>2021<br>Funds 2020<br>£<br>£<br>3,484<br>2,268<br>1,102<br>829<br>2,043<br>396<br>736<br>-|Total<br>Unrestricted<br>2021<br>Funds 2020<br>£<br>£<br>3,484<br>2,268<br>1,102<br>829<br>2,043<br>396<br>736<br>-|Restricted<br>Total<br>Funds 2020<br>2020<br>£<br>£<br>-<br>2,268<br>829<br>-<br>396<br>-<br>-|
|---|---|---|---|---|---|
||6,629|736|7,365|3,493|-<br>3,493|
||10,000<br>105,442<br>1,230<br>4,465<br>896<br>6,694<br>26,845<br>251<br>4,256<br>660<br>5,098<br>1,171<br>1,086<br>4,342<br>4,099<br>-<br>-<br>-<br>7,603<br>1,630<br>1,706<br>444|13,049<br>-<br>159<br>-<br>-<br>-<br>108<br>-<br>-<br>-<br>1,456<br>307<br>724<br>76<br>-<br>1,980<br>-<br>7,345<br>-<br>-<br>-<br>-|23,049<br>105,442<br>1,389<br>4,465<br>896<br>6,694<br>26,953<br>251<br>4,256<br>660<br>6,554<br>1,478<br>1,810<br>4,418<br>4,099<br>1,980<br>-<br>7,345<br>7,603<br>1,630<br>1,706<br>444|8,500<br>115,152<br>1,224<br>3,492<br>774<br>6,684<br>21,638<br>851<br>3,601<br>452<br>693<br>1,374<br>691<br>4,182<br>-<br>-<br>-<br>-<br>5,520<br>1,205<br>5,182<br>209|7,313<br>15,813<br>-<br>115,152<br>411<br>1,635<br>-<br>67<br>3,559<br>-<br>774<br>-<br>6,684<br>16,359<br>37,997<br>-<br>851<br>-<br>3,601<br>-<br>452<br>2,621<br>3,314<br>472<br>1,846<br>1,271<br>1,962<br>490<br>4,672<br>-<br>-<br>-<br>-<br>-<br>-<br>13,253<br>13,253<br>-<br>5,520<br>-<br>1,205<br>-<br>5,182<br>-<br>209|
||187,918|25,204|213,122|181,424|42,257<br>223,681|
|||||||
||194,547|25,940|220,487|184,917|42,257<br>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:**<br>Bible Society<br>Church Mission Society<br>Embrace the Middle East<br>Leprosy Mission<br>Jerusalem & Middle East Church Association<br>Lent boxes<br>Rwanda<br>Sat 7<br>Tearfund|Unrestricted<br>Funds 2021<br>£<br>1,000<br>2,500<br>-<br>-<br>750<br>-<br>2,500<br>500<br>1,000|Restricted<br>Funds 2021<br>£<br>-<br>79<br>367<br>-<br>-<br>796<br>10,508<br>-<br>-|Endowment<br>Funds 2021<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|Total<br>Total<br>2021<br>2020<br>£<br>£<br>1,000<br>1,000<br>2,579<br>2,500<br>367<br>-<br>-<br>645<br>750<br>1,021<br>796<br>372<br>13,008<br>6,610<br>500<br>-<br>1,000<br>1,000|
|---|---|---|---|---|
||8,250|11,750|-|20,000<br>13,148|
|**Home missions and other church societies:**<br>Childrens' Society<br>Christians Against Poverty<br>Mission to Seafarers<br>UCCF<br>Young Minds|-<br>750<br>-<br>500<br>-|326<br>-<br>283<br>139<br>-|-<br>-<br>-<br>-<br>-|326<br>-<br>750<br>750<br>283<br>-<br>639<br>-<br>-<br>54|
||1,250|748|-|1,998<br>804|
|**Local charities:**<br>Basics Bank<br>Brockenhurst Day Care Centre<br>Brockenhurst Gateway (New Forest Mencap)<br>Oakhaven Hospice|-<br>-<br>500<br>-|184<br>-<br>-<br>367|-<br>-<br>-<br>-|184<br>20<br>-<br>750<br>500<br>800<br>367<br>291|
||500|551|-|1,051<br>1,861|
||||||
|**Total Missionary and charitable giving**|10,000|13,049|-|23,049<br>15,813|



Page 23 



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

## **5. Staff Costs** 

|Wages and salaries<br>National Insurance<br>Pension<br>Life Assurance<br>Training|2021<br>2020<br>£<br>£<br>26,827<br>37,341<br>-<br>-<br>116<br>579<br>10<br>77<br>-<br>-<br>26,953<br>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<br>Disposal<br>Purchases at cost<br>Net gains<br>Market value at 31 December 2021<br>Units held|St Nicholas'<br>Churchyard<br>£<br>57,243<br>-<br>-<br>8,189<br>65,432<br>2,794|Walker<br>Munro<br>£<br>14,811<br>-<br>-<br>2,119<br>16,930<br>723|Harding<br>Total<br>£<br>£<br>9,834<br>81,888<br>-<br>-<br>-<br>-<br>1,407<br>11,715<br>11,241<br>93,603<br>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<br>Gift Aid Tax<br>HMRC (employment)<br>Diocesan Loans Fund<br>Other debtors<br>Prepayments|Unrestricted<br>Funds 2021<br>£<br>1,824<br>-<br>61,569<br>726<br>64,119<br>100<br>64,219|Restricted<br>Funds 2021<br>£<br>433<br>-<br>-<br>1<br>434<br>-<br>434|Endowment<br>Funds 2021<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-|2021<br>2020<br>£<br>£<br>2,257<br>782<br>-<br>-<br>61,569<br>61,486<br>727<br>4,445<br>64,553<br>66,713<br>100<br>583<br>64,653<br>67,296<br>Total Funds|
|---|---|---|---|---|



Page 25 



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

## **9. Liabilities** 

|Accruals and deferred income<br>Charities<br>Other<br>Creditors for goods and services<br>Other creditors|Unrestricted<br>Funds 2021<br>£<br>-<br>8,926<br>8,926<br>5,757<br>-<br>14,683|Restricted<br>Funds 2021<br>£<br>957<br>92<br>1,049<br>1,065<br>-<br>2,114|Endowment<br>Funds 2021<br>£<br>-<br>-<br>-<br>-<br>-<br>-|2021<br>2020<br>£<br>£<br>957<br>1,047<br>9,018<br>7,238<br>9,975<br>8,285<br>6,822<br>2,643<br>-<br>-<br>16,797<br>10,928<br>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<br>1 January|Incoming<br>Resources|Resources<br>Expended|Net|Transfers<br>Balance at<br>31 December|
|---|---|---|---|---|---|
|General<br>Hall<br>Fabric<br>Music<br>St Nicholas' Flower Trading<br>St Saviour's Flower Trading<br>Flower (Trading)|62,896<br>-<br>30,000<br>125<br>-<br>-<br>2,393<br>95,414|205,646<br>4,559<br>-<br>475<br>-<br>-<br>2,520<br>213,200|(184,266)<br>(8,218)<br>-<br>-<br>-<br>-<br>(2,063)<br>(194,547)|21,380<br>(3,659)<br>-<br>475<br>-<br>-<br>457<br>18,653|-<br>84,276<br>-<br>(3,659)<br>-<br>30,000<br>-<br>600<br>-<br>-<br>-<br>-<br>-<br>2,850<br>-<br>114,067|



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

- The General Fund is used for the day-to-day running expenses of the church activities that cannot be charged to any other fund; 

- The Hall Fund is used for the day-to-day running expenses of the church hall under the control of the Hall Management committee; 

- The PCC has designated £30,000 of unrestricted money as the Fabric Fund to cover the costs of implementing the recommendations of the Quinquennial survey conducted on both churches in 2020. These costs are estimated to be £30,000 and the expenditure will be spread over the next five years. 

- The Music Fund is a designated fund to be spent on the enhancement of music within the worship of both churches. 

- The Flower (trading) Fund is a designated fund that accounts for funds raised in the provision and arrangement of church flowers for weddings and funerals. The net income of this fund is used to support the provision of flowers for church services also partly funded by the Flower Pot Fund. 

Page 27 



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

## **10(b) Restricted Funds** 

|**10(b) Restricted Funds**|||||||
|---|---|---|---|---|---|---|
|Note<br>St Nicholas'<br>St Nicholas' Churchyard Fund Income<br>St Nicholas' Flower Guild<br>Total St Nicholas'<br>St Saviour's<br>St Saviour's AV system<br>Walker Munro Fund  Income<br>St Saviour's Flower Guild<br>Total St Saviour's<br>Youth Worker<br>Total Youth<br>Brockcare<br>General<br>Christmas Lunch<br>Holidays at Home<br>Total Brockcare<br>Charities<br>4<br>Flower Pot<br>Music<br>Harding Fund Income<br>Total other restricted funds<br>Hall Development<br>Kitchen<br>Carpet<br>Total Hall Development<br>Total restricted funds|Note|Balance at<br>1 January|Incoming<br>Resources|Resources<br>Expended|Net|Transfers<br>Balance at<br>31 December|
|||-<br>222<br>66<br>288<br>235<br>11,803<br>315<br>3<br>12,356<br>-<br>-<br>(706)<br>1,076<br>816<br>1,186<br>199<br>-<br>636<br>4,760<br>5,595<br>2,842<br>456<br>3,298<br>22,723|1,000<br>1,660<br>180<br>2,840<br>2,500<br>30,531<br>430<br>206<br>33,667<br>220<br>220<br>25<br>43<br>368<br>436<br>13,529<br>95<br>-<br>285<br>13,909<br>-<br>-<br>-<br>51,072|(917)<br>-<br>(354)<br>(1,271)<br>(2,758)<br>(4,047)<br>(270)<br>(19)<br>(7,094)<br>(159)<br>(159)<br>(43)<br>(73)<br>(663)<br>(779)<br>(13,049)<br>-<br>(185)<br>(105)<br>(13,339)<br>(2,842)<br>(456)<br>(3,298)<br>(25,940)|83<br>1,660<br>(174)<br>1,569<br>(258)<br>26,484<br>160<br>187<br>26,573<br>61<br>61<br>(18)<br>(30)<br>(295)<br>(343)<br>480<br>95<br>(185)<br>180<br>570<br>(2,842)<br>(456)<br>(3,298)<br>25,132|-<br>83<br>-<br>1,882<br>108<br>-<br>108<br>1,965<br>23<br>-<br>-<br>38,287<br>(23)<br>452<br>(190)<br>-<br>(190)<br>38,739<br>-<br>61<br>-<br>61<br>-<br>(724)<br>-<br>1,046<br>-<br>521<br>-<br>843<br>-<br>679<br>82<br>177<br>-<br>451<br>-<br>4,940<br>82<br>6,247<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>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: 

- St Nicholas’ 

   - This accounts for money donated specifically for the maintenance and other running costs of St Nicholas’ church. 

   - Income of £1,000 was received from a legacy in 2021 and £917 was spent on maintenance costs. 

- St Nicholas Churchyard Income 

   - This fund accounts for the investment income received from the St Nicholas Churchyard endowment fund. This income may be spent on the maintenance of the churchyard and any surplus on the maintenance of St Nicholas’ church. 

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

- St Nicholas Flower Guild 

   - This fund accounts for money given for the provision of flowers in St Nicholas such as the Flower Pot collections and other donations. This is separate from any money raised through the provision of wedding flowers which is regarded as a trading activity the profit from which is treated as unrestricted income. 

   - This fund has been merged with the corresponding fund for St Saviour’s and the assets transferred to the Flower Pot Fund. 

   - The provision of flowers is reported as part of the Upkeep of Services costs. 

- St Saviours 

   - This fund accounts for money donated specifically for the maintenance and other running costs of St Saviour’s church. 

- St Saviour’s AV System 

   - This fund accounts for the appeal income raised to pay for the installation of a new Audio Video (AV) system in St Saviour’s church. 

   - The cost of the sound system was capitalised and this fund now accounts for the depreciation of the sound system over a five year period. 

   - The 2021 expenditure of £4,047 is the cost of depreciation for 2021. 

   - A further appeal was held in 2021 to raise funds to enhance the video system. This raised a total of £30,531. 

- Walker Munro 

   - This fund accounts for the investment income received from the Walker Munro endowment fund. 

   - The exact purpose of this fund is unclear as no formal documentation can be found. The PCC have therefore decided that this fund can be used to support the costs of St Saviour’s church the construction of which was paid for by the Walker Munro family of Rhinefield House. 

   - Money from the fund was used to pay for maintenance of St Saviour’s church. 

- St Saviours Flower Guild 

   - This fund accounts for money given for the provision of flowers in St Saviour’s such as the Flower Pot collections and other donations. This is separate from any money raised through the provision of wedding flowers which is regarded as a trading activity the profit from which is treated as unrestricted income. 

   - This fund has been merged with the corresponding fund for St Nicholas’ and the assets transferred to the Flower Pot Fund. 

   - The provision of flowers is reported as part of the Upkeep of Services costs 

- Youth Worker 

   - This fund accounts for the income and expenditure of funds received explicitly for Youth Work. Only one donor is still regularly supporting this fund. 

   - A Youth Worker was not employed in 2021 but it is hoped to recruit a family worker later in 2022 to be shared with Boldre and South Baddesley parishes. 

- Brockcare General 

   - This fund accounts for the general costs of running the Brockcare activities. Brockcare activities such as Holiday at Home attract grant income which is difficult to allocate to general costs. Consequently, the general fund is overspent while more specific funds are in surplus. The PCC aim to resolve this issue but no solution has been found to date. 

- Christmas Lunch 

   - This fund accounts for the income and expenditure associated with providing the Christmas lunch. 

   - The total income of £430 comprises charges made for the lunch and grant income of £100 received from the Groome Trust. 

   - Income exceeded expenditure resulting in a small surplus of £198 

- Holidays at Home 

   - This fund accounts for the income and expenditure for the annual Holidays at Home 

   - Due to the Covid-19 Pandemic there was no Holidays at Home in 2020 so income and expenditure are both zero. 

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

- Charities 

   - Any collection (such as those at Easter, harvest and Christmas) or other fund raising activity on behalf of other charities is treated as a restricted fund. Details of the charities supported in this way are detailed in note 4 under the restricted funds heading. 

   - In total, £13,529 was raised for charities including £10,508 raised by an emergency appeal to support the Kigeme diocese, Rwanda, as a result of the Covid-19 Pandemic. 

- Music 

   - The music fund was established to support the musical activities of both churches in the parish (St Saviour’s and St Nicholas’). 

   - Income predominately comes from choir members who donate their fees for singing at funerals. 

   - Money from the fund was used in 2021 to pay for: 

      - Subscription to the RSCM 

- Harding Income 

   - This accounts for investment income received from the Harding Investment Fund used to maintain the Harding grave in St Nicholas’ churchyard 

- Hall Development Funds 

   - These are the funds opened to fund the extension to the church hall. These funds now account for the depreciation of the capitalised assets (kitchen and carpet). These assets will become fully depreciated in 2021. 

   - Kitchen 

      - This accounts for any money donated specifically for the refurbishment of the hall kitchen as part of the development project. 

      - The cost of the kitchen was capitalised at £42,612 to be depreciated to £0 over a five year period. 

      - The expenditure of £2,842 from this fund represents the depreciation for 2021. 

      - The kitchen is now fully depreciated. 

   - Carpet 

      - This accounts for money given for the re-carpeting of the hall. 

      - The hall carpet was capitalised at £3,420 to be depreciated to £0 over 5 years. 

      - The expenditure of £456 from this fund represents the depreciation for 2021. 

      - The carpet is now fully depreciated. 

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

## **10 (c) Endowment Funds** 

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



The Endowment Funds comprise 

- The St Nicholas Churchyard Fund which was established by a gift of £15,000. The income from this can be used for the maintenance of the St Nicholas Churchyard and also for maintenance of St Nicholas church; 

- The purpose of the Parish Church Fund was unclear and the PCC resolved that the best use of the funds available was to consolidate them with the St Nicholas restricted fund 

- The income from the Walker Munro Fund can be used for the maintenance of St Saviours church; 

- The Harding fund was established by a gift of £2,000 from Miss Harding to maintain her parents grave. The capital was left in trust to the Vicar and Church Wardens in 1976 for 79 years after which the capital becomes the property of the PCC. 

## **11. Fixed Assets** 

|Cost or valuation<br>At beginning of the year<br>Additions at cost<br>At end of the year<br>Depreciation<br>At beginning of the year<br>Charge for the year<br>At end of the year<br>Net book value<br>At beginning of the year<br>At end of the year|Kitchen<br>Carpet<br>St S AV<br>Total<br>£<br>£<br>£<br>£<br>42,612<br>3,420<br>20,117<br>66,149<br>-<br>-<br>-<br>-|
|---|---|
||42,612<br>3,420<br>20,117<br>66,149|
||39,770<br>2,964<br>8,315<br>51,049<br>2,842<br>456<br>4,047<br>7,345|
||42,612<br>3,420<br>12,362<br>58,394|
||2,841<br>456<br>11,805<br>15,102<br>-<br>-<br>7,755<br>7,755|



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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; 

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

   - b. a cash balance section known as Pension Builder 2014. 

## **Pension Builder Scheme** 

Both sections of the Pension Builder Scheme are classed as defined benefit schemes. 

_**Pension Builder Classic**_ provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors. 

_**Pension Builder 2014**_ is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65. 

There is no sub-division of assets between employers in each section of the Pension Builder Scheme. 

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102.  This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme.  The 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. 

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