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2020-12-31-accounts

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report and

Consolidated Financial Statements

For the year ended 31 December 2020

Charity number 1131798

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Contents

Section Pages
Annual Report 3-12
Consolidated Statement of Financial Activities 13
Balance Sheets 14
Consolidated Statement of Cash Flows 15
Notes to the Financial Statements 16-33
Report of the Independent Examiner 34

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

Reference and Administration

The full name of the charity is The Parochial Church Council of the Ecclesiastical Parish of Leeds St George (referred to elsewhere as the PCC), which is situated in Great George Street, Leeds, LS1 3BR. This is also the address for all correspondence. It is part of the Anglican Diocese of Leeds within the Church of England. The Church is registered with the Charity Commission and its Charity number is 1131798.

Membership of the PCC

The PCC members, who are the trustees for the purpose of the Charities Act and who served on the Council since the Annual Church Meeting in 2020 to date (unless otherwise stated), are set out below. During 2020, 8 ex-officio members, 2 co-opted members (one non-voting), 2 Churchwardens, 1 Deputy Churchwarden, 4 Deanery Synod members and 14 elected members served on the PCC.

Ex-Officio members: Reverend Canon Elizabeth Woolf Rector
Reverend Joanna Seabourne
Team Vicar
Reverend Jon Swales Lighthouse Minister
Reverend Eve Ridgeway
Associate Rector
Reverend Adrian Smith Associate Rector
Reverend Julia Wilkins Curate
Reverend Paul Wilcock Assoc. Minister (Appointed 23 January 2020)
Reverend Che Seabourne
Curate (Appointed 4 July 2020)
Co-opted members: Lynne Fox PCC Secretary (non-voting - Appointed 18 May 2020)
Keith Swallow Church Treasurer (Appointed 18 May 2020)
Churchwardens: Ian Pickup, Pauline Rhodes
Deputy Churchwarden Phil Wright (co-opted 18 May & appointed 3 November 2020)
Deanery Synod members: David Kibble, Philip Sykes, Ann McKenna, Jonny Bolton
Elected members: Mary Booth, Ronke Fakunle, Tracy Farnhill, Bethan Fiveash, Miriam Hurley, Ganzi
Isharaza, Ben Jones, Matt Malone, Richard McIntyre, Lindsey Pallant, Susie Smith,
Ian Warner, Ann Weir, Jamie Woodhead

Day to day management is carried out by the Rector and the Operations Manager.

Bankers: Unity Trust Bank, Four Brindleyplace, 4 Oozells Square, Birmingham, B1 2JB Independent Examiner: Sally Templeman MA, CA, 4 Lawn Avenue, Burley in Wharfedale, Leeds, LS29 7ET

Structure, Governance and Management

The method of appointment of PCC members is set out in the Church Representation Rules. Newly appointed PCC members are inducted into their roles and responsibilities by the Churchwardens and Operations Manager.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

The PCC operates through a number of committees:

The Standing Committee: This committee is a requirement by law and has the power to transact the business of the PCC in between official meetings The Treasury: Oversees the general finances of St. George’s Church, sets the annual budget and is responsible for the annual review of giving within the Church Overseas Mission Committee: Spearheads the Church’s mission programme in terms of agreeing financial support for Mission Partners and for Church members on short term mission programmes Church Centre Management Committee: Responsible for reviewing all operational aspects of the Church Centre and advising the PCC accordingly

Arrangements for setting pay and remuneration: The trustees consider that the Rector and Operations Manager comprise the key management personnel of the charity in charge of directing and controlling its operations on a day to day basis. The Rector is employed by the Church of England and their remuneration is governed by agreements set nationally by the employing body.

Role of Volunteers: Many of the leadership and support roles within St George’s are filled by volunteers. These range from participation in Network Groups, Worship, Outreach and Mission Activities in all their various forms, Administration and Governance. Given the diverse and varied nature of these roles, it is virtually impossible to measure the time commitment and notional value attaching to them.

Objectives and Activities

St George's PCC has responsibility for co-operating with the Rector in promoting the whole mission of the Church, pastoral, evangelistic, social and ecumenical, in the ecclesiastical parish. It also has maintenance responsibility for the main church building, the adjoining St George's Church Centre and three properties (one of which is rented) and of which two house volunteers participating in our ministry experience scheme.

Achievements and Performance

Sundays and special services

At the start of 2020, we met in our church building for 22 lively Sunday services at 10.30 and 18.30, with sung worship, biblical teaching and prayer. From March, we went online, with a pre-recorded service at 10.30 for the whole church family. More than 200 people watched each week, and over 300 congregation members featured on screen. In September we launched 1830 Live Season 1, with armchairs by the fire, online interaction, and socially distanced seats in the building (when permitted). More than 150 people watched each week, in addition to those in the building, and many people stepped up into new roles. Particular thanks to our 36 worship team musicians and 29 tech team members.

Sermon series included ‘Belonging’, ‘Daniel’, ‘Stories’ with many congregation members sharing personal stories of faith online, and ‘Resourced’. We offered follow up zoom seminars on climate change and apocalyptic literature.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

Highlights included:

Lighthouse

Lighthouse is our community that reaches out to those battered and bruised by the storms of life, including homelessness, addiction, poverty, trauma and mental health crisis.

At the start of 2020, Lighthouse held Sunday services in the Crypt with around 75 each week and up to 100 for lunch, plus meetings twice a week at St George’s. Our pastoral care is highly specialised, with strong relationships with Adult Social Care, police, hospitals, prisons and mental health crisis teams.

With our bishop’s permission, Lighthouse was able to use St George’s church building as a base throughout the first lockdown to support some of the most vulnerable in our city. We provided more than 5,000 pastoral phone calls, 1,000 food parcels, 300 doorstep acts of worship and 500 support hours. In June our ‘outstanding service’ was recognised by the Lord Lieutenant of West Yorkshire.

From July, Lighthouse met 3-4 times a week in small support groups at St George’s to provide Christian day care for around 60 people, with additional support for the most vulnerable in Lighthouse Harbour. Smaller numbers have meant an opportunity for greater depth and transformation.

50 people completed the first ‘Mission, Theology and Ministry for the Margins’ course in partnership with Leeds School of Theology, and a further 32 started online in September. We have also offered coaching and consulting to various groups wanting to work with the marginalised.

Kids and Youth

At the start of 2020, we averaged 42 children and 18 young people at our Sunday morning groups, 20 young people at Roots Friday, 6 young people at 18.30, and 16 children (plus carers) at St G’s Tots. In March we launched 6 weekly online small groups, attended by about 30 6-11s and 25 11-16s.

2020 highlights included:

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

Thank you to all our wonderful volunteers, including those helping in groups, our safeguarding officers (who help us follow legislation and good practice) and those supporting Eckersley House (for families of children in the LGI).

Students

We have students from all 5 Leeds universities at St George’s. As lockdown started, we had 93 domestic students in 8 small groups, with a wider fringe, plus 10 international students. Student Teas averaged 40. Throughout lockdown about 30 students joined a Student Night on zoom each Thursday.

With the new academic year in October, we connected with over 50 new undergraduate students, with over 90 students involved by the end of October. Our international small group continued for around 6-8 students, and we launched a new group for 14 post-graduate students.

2020 highlights included:

Small Groups and Networks

We have 33 small groups and networks meeting regularly for community and discipleship. In 2020 these moved online, and have been the core of our dispersed community life. At least 49 people joined small groups in 2020. After church zoom coffee and zoom pub were also popular.

A huge thank you to all our small group leaders, including 7 who stepped down and 22 who started in 2020. They have been supported with regular team meetings, resources, and specific training on ‘suffering, sovereignty and hope’, bereavement care and racial justice.

Our special groups have also continued through lockdown. Farsi Network has been able to meet online, support asylum seekers and has started a new women’s group. Africa Group helped us to learn about issues of racism and racial justice. Dialogue and Reconciliation Network contacted Jewish and Muslim leaders in Leeds to express our support as people of faith, given the rise in anti-Semitism and Islamophobia. Extra Time (for over 50s) continued a popular monthly midweek Holy Communion by zoom. Our walking group was able to meet for 4 walks, including once in groups of 6.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

Pastoral care

In the first lockdown, around 100 people took part in a pastoral support system, receiving a regular phone call from a member of the congregation. This helped us to identify and respond to both practical and pastoral needs. We also established a well-funded hardship fund.

Prayer

Prayer underpins everything at St George’s. In March we introduced daily Facebook Live prayers. In the first lockdown more than 50 people participated at 9am each day and 30 at 9pm. By autumn this settled to a community of around 23 people at 9am and 12 at 9pm. Many of us joined the Thy Kingdom Come global prayer movement, praying more between Ascension and Pentecost. Our interactive monthly prayer meeting also moved onto zoom, and prayer ministry appointments have been available online.

Alpha

Alpha creates space for people to bring their friends for a conversation about faith, life and God. In 2020 we ran Alpha once ‘in person’ and 3 times online, with 35 people finishing the course and 20 people helping to host. As an Alpha hub church, we continued to work with Alpha UK, especially to develop the new Alpha Online Platform.

Marriage Course

In February and March, 3 couples led The Marriage Course for 17 couples to invest in their marriages, switching to online part way through. We usually offer the Pre-Marriage Course for engaged couples, led by 2 St George’s couples. In 2020, we signposted 6 couples to the online course provided by Holy Trinity Brompton.

Partnerships

Resource Church

St George’s is one of 5 Resource churches in Leeds, working together under the leadership of Bishop Paul Slater. This means we have a city-wide vision, and are committed to church planting and giving away resources strategically in order to bless our city.

Our last church plant was in Jan 2018 to St Paul’s Ireland Wood. In October 2020 they wrote to thank us, explaining that a few years ago, a pandemic might well have forced them to close permanently, but because of the re-vitalisation they were able to look outwards and support their local community. We expect Julia Wilkins to lead our next plant in 2022.

In 2020:

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

St Augustine’s Wrangthorn

Since 2012 we have had a mission partnership agreement with our neighbouring parish. In 2020 we worked with the diocese on plans to formalise this link and become a 2 parish benefice.

Wrangthorn joined St G’s for online services before launching their own zoom services and continued to serve their local community.

Church@Hyde Park Corner

In September 2020 we launched Church@Hyde Park Corner, a student church for unchurched students, in partnership with Wrangthorn. There are usually around 70,000 students in Leeds, but only 0.6% goes to church. Our team of 5 students and 2 interns went door knocking weekly and connected with unchurched students via Instagram.

Holy Trinity Boar Lane

In 2020 we continued to work with Leeds Minster on plans to plant a week-day ministry of worship, prayer and outreach to those working in Leeds city centre. Holy Trinity Boar Lane was redeveloped, with the aid of grant funding, to prepare it to be a home for the new church plant. We also worked with the diocese on plans to move the parish boundary so that Holy Trinity Boar Lane will fall within St George’s parish.

St Hild Theological College

As a founding church partner, we provide a trustee, and many of our clergy are associate faculty and lead teaching modules. In 2020 we helped launch the new St Hild Centre for Church Planting.

Interns & ordinands

In partnership with the diocese, our intern programme has expanded to include 24 interns serving in Leeds, Bradford, and Harrogate.

2 St G’s interns graduated in January 2020 having served for 18 months, and 5 in July after a year. Over 50 people joined the zoom graduation to celebrate, hear testimony and pray. In September we welcomed 10 interns to serve at St George’s, 2 serving a 2nd year and 8 new people. Our interns live in community houses, receive weekly teaching and supervision, and serve in a ministry area. 3 finished at the end of 2020, returning to Rwanda and China.

St George’s is the sending church for 4 young women who are at theological college training for ordination. We also have 10 men and women exploring the possibility of ordination.

Mission Partners

St George’s Crypt

In October 2020, the Crypt celebrated its 90th anniversary serving the homeless in Leeds.

In 2020, lockdown restrictions had a significant impact, but the Crypt continued to operate core services, with bedrooms full in the Care Centre and Regent Lodge, and additional responsibility for managing a temporary hostel and

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

hotel for the homeless. Growing Rooms, the residential abstinence recovery project, continued to work with 20 clients online. After a delay, construction work continued on new move-on accommodation.

Local mission partners

We have 4 main local mission partners: St George’s Crypt (see above), Kidz Klub, Leeds Faith in Schools and Transformations Leeds who we support in a variety of ways including money, prayer, trustees, volunteers, and hampers. In 2020 we also supported Spacious Places.

Overseas mission partners

In 2020 we supported 5 overseas mission partners with prayer and money. One returned to the mission field in late 2020 after studying in Leeds, and some were able to join in St George’s online events.

Resourcing the Ministry

Staff team

We have a fantastic staff team who work hard to support and equip our many volunteers. In 2020 we made good use of the government’s furlough scheme. We also made some difficult decisions, including redundancies and not filling posts following resignation. We said goodbye to Laura Palmer (International students), Dyveke Rismoen (Assistant Centre Manager), James Meredith (Wrangthorn), Hannah Jones (Lighthouse pastor), and Helen Coutie (Finance Administrator). We welcomed 2 self-supporting clergy, Paul Wilcock (Associate Minister) and Che Seabourne (Curate).

PCC

The Parochial Church Council consists of churchwardens, clergy, and elected representatives of the congregations. The PCC work with the Rector to oversee all our ministry and mission, with a focus on finances, buildings and HR. This year we took some key decisions towards becoming a team ministry with 2 parishes and 3 church buildings. We also recognised the climate emergency and learned about racial justice.

Our zoom ACM, the Ultimate Church Night In, took place in November with about 135 people. Special thanks were given to Alastair Smith who stepped down after 24 years as treasurer.

Website and Social media

In 2020 St George’s social media reached half a million people. We appeared on the Facebook timeline of over 450,000 people, and over 55,000 unique Instagram users saw our posts or stories. Visits to the website increased 55% with over 41,000 unique visitors in 2020, and we added a selection of online resources. Between August and December, 41 people made contact via the ‘New to Leeds’ page on our website.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

St George’s Centre

St George’s Centre performed well in January, February and most of March, but was closed for much of 2020 due to lockdown restrictions. We reduced costs wherever possible, but a much reduced financial contribution towards the wider ministry of St G’s was inevitable. We were pleased to use the space to support the Leeds General Infirmary and Lighthouse at different times.

Risk Management

The PCC delegates responsibility for identifying and managing specific key risks to one of the committees set out above. The key risks are incorporated into a Risk Register which is reviewed periodically by the Operations Manager in conjunction with one of the churchwardens. The specific risks associated with the Covid-19 pandemic are disclosed in a fuller statement at the end of the Trustees’ Annual Report.

Financial review

Donated income (including tax recovered) totalled £520,062 compared with £450,009 for the previous year. After a successful first quarter, the Church Centre was badly hit by the Covid-19 pandemic generating income of £60,150 in 2020 compared with £292,403 in 2019. Income from investments totalled £18,168 (2019 £15,881), again reflecting good returns from our investments managed by CCLA. Overall, unrestricted income totalled £674,716 (2019 £791,193).

Expenditure in 2020 across all areas of church activity (but excluding the trading subsidiary, St George’s Centre Limited) totalled £668,195 (2019 £725,846). Much reduced trading subsidiary running costs of £41,695 reflected the significant reduction in activity driven by the pandemic (2019 £114,569).

Total funds at 31 December 2020 were £1,367,258 of which £21,507 was restricted and £133,865 related to endowments. The split of unrestricted funds into various designations is outlined in the “Reserves policy” below and in Note 13 of the Financial Statements.

Trading subsidiary

St George’s Centre Limited is responsible for the hiring out of the Church Centre together with the provision of ancillary services. The results of the subsidiary have been consolidated into these accounts together with the activities of the Church. Notes 3(b), 4(b) and 7(b) of the Financial Statements give more detail.

Investment performance

All the investments held as an alternative to cash deposits are invested with CCLA, an organisation which solely manages investments for charities, religious organisations and the public sector. At 31 December 2020, investments were held in the CBF Church of England Investment Fund and the COIF Charities Property Fund. The former is designed to produce combined income and capital growth over the medium term whilst the latter generates immediate returns in the form of dividends. A summary of the performance of each fund is given below:

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

Value of each Value of each Income year
Unit at 31/12/19 Unit at 31/12/20 ended 31/12/20
Dividends received
CBF Church of England Investment Fund:
Accumulation Units £45.0145 £49.6199 N/A
Income Units £19.1260 £20.4467 £4,354
COIF Charities Property Fund £1.1471 £1.0893 £11,543

The CBF Church of England investments made a significant recovery in value during the course of 2020 recovering all the earlier losses occasioned by the Covid-19 pandemic. However, uncertainty around commercial property values in the UK left the COIF Charities Property Fund down from its value at the beginning of the year although there were signs some parts of this market were recovering towards the end of 2020 and into 2021.

Reserves policy

At 31 December 2020, St George’s had Unrestricted Funds of £1.212 million, compared with £1.241 the previous year. The movement is made up of a deficit of £28,552 plus investment losses of £721. The investment losses are unrealised losses revaluing the investment holdings. The Unrestricted Funds can be sub-divided into various categories as follows.

An amount of £546,759 represents the net book value of tangible fixed assets (less related borrowings) which are used by St George’s in the delivery of its mission and the maintenance of Church Centre activities. These are known as ‘Functional Assets’ and by their nature are not readily available to meet the day to day operating expenditure of the organisation.

A further sum of £360,800 has been set aside in a Repair and Replacement Fund. The PCC is responsible for the upkeep of the church building together with four properties which it owns. In addition, it has a duty to ensure all fixtures, fittings and equipment used by the staff and congregation are fit for purpose and maintained to a high standard. The provision made in 2019 representing St George’s contribution to remedial cladding works on the St George Building was initially set at £100,000. The availability of government grants from the Building Safety Fund means this figure can be significantly reduced as the Church will only have to contribute to the cost of non-eligible expenditure on the cost of replacing flammable balcony timbers. The revised provision in the Repair and Replacement Fund is £30,000 (see also Note 15). Ordinarily, The Fund is designed to meet anticipated major expenditure required over a 5 year rolling period.

The Strategic Mission Fund has been established to finance mission initiatives with partners who share broadly the same aims and objectives as St George’s. A further sum of £5,000 will be donated to St Hild College in 2021 with the balance of £40,000 remaining unallocated although it is anticipated that it will be used to assist with the next church planting and renewal initiative.

It is the intention that both the Repair and Replacement Fund and Strategic Mission Fund are reviewed and updated at least annually to ensure current and future needs in these areas are adequately resourced.

The balance of Unrestricted Funds amounting to £264,327 partly comprises a Contingency Fund to meet the additional financial demands which could arise from a downturn in our principal sources of income, namely voluntary giving and Church Centre revenues and in meeting the potential liability which could arise from our pension fund obligations (see Note 15). The remaining balance is unallocated.

Details of funds and reserves are given in Note 13 to the accounts.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST GEORGE

Annual Report

For the year ended 31 December 2020

Public benefit

When reviewing the aims and objectives of the charity and in planning future activities, the trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. In promoting the Christian faith, St George’s Church is open to all and makes no charges to attend any of its services and most of the activities connected with public worship. Some optional courses are run which make a small charge which is intended to cover the direct cost of the resources required in delivering these courses.

Covid-19 pandemic

Writing this report 12 months ago, we could not have imagined the full effect of this pandemic both in terms of the timeframe required to control it and the impact on people’s lives. St George’s has managed to adapt all areas of community life as far as possible so that it could continue to function at an operational level and communicate with and support all members of our own congregation and indeed many others outside of our immediate church family. This is a reflection of the skills and ingenuity of our whole staff team and many volunteers who have shown how effectively the Church can adapt to adversity when the need arises. The congregation have continued to support the Church financially at a level not dissimilar to that prior to the pandemic and the 2021 Vision Appeal is testimony to that continuing commitment as the amount raised of around £70,000 (including Gift Aid) comfortably exceeded our target of £50,000. This level of support allied to other significant initiatives such as the government’s Coronavirus Job Retention Scheme (‘furlough’ arrangements) has allowed the Church to maintain a relatively strong financial position. By contrast, the Church Centre commercial activities have been severely curtailed reflecting the experiences of the wider hospitality industry. Successive lockdowns, restrictions on meeting numbers and general uncertainty lead to very few events being held in the Church Centre after the end of March 2020 with a consequent financial impact mentioned elsewhere in this report. However, the operational capability of the Centre has been maintained throughout and the Manager and support staff are ready and well prepared for the re-opening when dates can be finalised.

Measures to ensure the safety and wellbeing of all staff and volunteers continue in place and include the following:

Where additional disclosure is required, this can be found in the Notes to the Financial Statements.

Approved by the PCC on 15 June 2021 and signed on their behalf by Reverend Elizabeth Woolf, PCC Chair

Elizabeth Woolf Rector

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Consolidated Statement of Financial Activities

For the year ended 31 December 2020

Note
INCOME FROM:
Donations and legacies
3(a)
Other trading activities
3(b)
Income from investments
3(c)
Income from charitable activities
3(d)
TOTAL INCOME
EXPENDITURE ON:
Expenditure on charitable activities
4(a)
Expenditure on raising funds
4(b)
TOTAL EXPENDITURE
Net (expenditure)/income before gains/(losses)
on investments
Net gains/(losses) on investments
7(b)&9
NET INCOME/(EXPENDITURE) and NET
MOVEMENT IN FUNDS
Reconciliation of funds:
TOTAL FUNDS AT 1 JANUARY
TOTAL FUNDS AT 31 DECEMBER		 Unrestricted
Restricted
Endowment
Total Funds
Funds
Funds
Funds
2020
2019
£
£
£
£
£
502,315
17,747
-
520,062
450,009
83,517
-
-
83,517
327,515
18,168
-
-
18,168
15,881
70,716
-
-
70,716
4,061
674,716
17,747
-
692,463
797,466
661,573
6,622
-
668,195
725,846
41,695
-
-
41,695
114,569
703,268
6,622
-
709,890
840,415
(28,552)
11,125
-
(17,427)
(42,949)
(721)
-
8,647
7,926
48,750
(29,273)
11,125
8,647
(9,501)
5,801
1,241,159
10,382
125,218
1,376,759
1,370,958
1,211,886
21,507
133,865
1,367,258
1,376,759

The consolidated statement of financial activities includes all gains and losses recognised in the year

All income and expenditure derives from continuing activities

The notes on pages 16 to 33 form part of these accounts

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Balance Sheets

As at 31 December 2020

Note
FIXED ASSETS
Tangible fixed assets
7(a)
Investments
7(b)
TOTAL FIXED ASSETS
CURRENT ASSETS
Debtors
8
Intercompany
Cash and bank
Investments
9
TOTAL CURRENT ASSETS
LIABILITIES:
Creditors: amounts falling due within
one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
LIABILITIES:
Creditors: amounts falling due after
one year
11
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY
12
Unrestricted
13
Restricted
14
Endowment
7(b)
TOTAL CHARITY FUNDS		 Group
Charity
2020
2019
2020
2019
£
£
£
£
585,759
579,141
585,759
579,141
133,865
125,218
133,866
125,219
719,624
704,359
719,625
704,360
36,951
89,712
30,134
52,940
-
-
23,038
39,606
304,880
283,345
281,697
258,895
391,667
392,388
391,667
392,388
733,498
765,445
726,536
743,829
(46,864)
(54,045)
(39,903)
(32,430)
686,634
711,400
686,633
711,399
1,406,258
1,415,759
1,406,258
1,415,759
(39,000)
(39,000)
(39,000)
(39,000)
1,367,258
1,376,759
1,367,258
1,376,759
1,211,886
1,241,159
1,211,886
1,241,159
21,507
10,382
21,507
10,382
133,865
125,218
133,865
125,218
1,367,258
1,376,759
1,367,258
1,376,759

Approved by the Parochial Church Council on 15 June 2021 and signed on its behalf by:

Elizabeth Woolf Trustee

Keith Swallow Trustee

The notes on pages 16 to 33 form part of these accounts

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Consolidated Statement of Cash Flows

For the year ended 31 December 2020

Note
Cash flows from operating activities:
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES
18
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Redesignated investments
NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
Cash flows from financing activities:
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD		 Total funds
2020
2019
£
£
32,835
(45,098)
18,168
15,881
-
-
(30,189)
(9,700)
-
-
(12,021)
6,181
-
-
-
-
20,814
(38,917)
675,733
714,650
696,547
675,733

Cash and cash equivalents include cash held on deposit with regulated banking institutions together with investments held with regulated investment managers

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

1 ACCOUNTING POLICIES

Basis of accounting

The PCC is a public benefit entity within the meaning of FRS 102. The financial statements have been prepared under the Charities Act 2011 and in accordance with FRS 102, the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP (FRS102)) and the Church Accounting Regulations 2006 governing the individual accounts of PCCs and with the Regulations’ “true and fair view” provisions.

Basis of consolidation

The consolidated financial statements comprise St George’s Church (‘the Charity’) and its wholly-owned subsidiary undertaking, St George’s Centre Limited, (‘the Subsidiary’). The summarised profit and loss account for the Subsidiary is shown in note 7(b)(ii). The results of the Subsidiary are consolidated on a line by line basis.

Going Concern

Management has considered the material uncertainties which could impact the charity’s ability to continue as a going concern including the continuing Covid-19 pandemic. The Trustees believe that whilst there has been some impact arising from the Coronavirus situation and the consequent worsening economic environment, the combination of donated and investment income supplemented by government grants and other financial assistance such as furlough will be adequate to provide sufficient cash flow to meet all day to day operational needs. The Charity also has sufficient reserves to meet all future commitments which have been identified.

The consolidated financial statements have therefore been prepared on the going concern basis which assumes that the Group will continue in operation for the foreseeable future. On this basis, the trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence.

Funds

Unrestricted funds represent the funds of the Group that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC Trustees. Funds designated for a particular purpose by the PCC are also unrestricted.

Restricted funds are those funds that must be spent on restricted purposes and details of the funds held and restrictions are provided in Note 14. Endowment funds (which are also restricted funds), where the capital must be retained, are explained in Note 7(b)(i).

The consolidated 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.

Income

Donations, legacies and charitable activities

Collections are recognised when received by or on behalf of the PCC. Planned giving receivable under Gift Aid is recognised only when received. Tax recoverable on Gift Aid donations is recognised when the donation is recognised. Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement, the amount due is quantifiable and an inflow of economic benefit is probable.

16

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

ACCOUNTING POLICIES (continued)

Other income

Rental income from the letting of church premises is recognised when the rental is invoiced as is the provision of any ancillary services. Government grants are recognised when receivable.

Income from investments

Dividends and fund distributions are accounted for when due and payable and interest entitlements are accounted for as they accrue. Tax recoverable on such income is recognised in the same accounting year.

Gains or losses on investments

Realised gains or losses are recognised when investments are sold. Unrealised gains or losses are accounted for on revaluation of investments at 31 December.

Expenditure

Resources expended

Resources expended are recognised in the period in which they are incurred and include attributable VAT which cannot be recovered.

Grants

The award of a grant is recognised as a liability only when the criteria for a constructive obligation are met, payment is probable, it can be measured reliably and there are no conditions attaching to its payment that limit its recognition.

Activities directly relating to the work of the Church

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

Pension costs

Workplace pensions -– Eligible employees are automatically enrolled with the National Employment Savings Trust (‘NEST’) in order to meet the Charity’s pension obligations arising from the statutory provisions of the Pensions Act 2008. Contributions unpaid at 31 December are accrued as a liability and paid to NEST by the 10[th] day of the following month.

Church Workers Pension Fund – The PCC now has no active employees enrolled with this scheme and consequently, there are no pension costs charged to the Consolidated Statement of Activities. A potential liability exists from securing the future benefits of past employees. Full details of this contingent liability are disclosed in Note 15 of the Financial Statements.

17

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

ACCOUNTING POLICIES (continued)

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Fixed Assets

Consecrated and benefice property

Consecrated and benefice property is excluded from the accounts in accordance with s.10 (2) (a) and (c) of the Charities Act 2011.

Moveable church furnishings

For property acquired prior to 2000, there is insufficient cost information available and therefore such assets are not valued in the financial statements. Items acquired since 1 January 2000 have been capitalised and depreciated in the financial statements over their currently anticipated useful economic life (initially over 4 years) on a straight line basis, apart from certain assets which are deemed to have a longer working life.

All expenditure incurred in the year on consecrated or benefice buildings or on the repair of movable church furnishings acquired before 1 January 2000 is written off.

Properties

Freehold and leasehold properties held as functional assets are valued at their original cost. At each reporting date, an assessment is carried out to determine whether the carrying value is in excess of the recoverable amount.

Other fixtures, fittings and equipment

Equipment used within Church premises is depreciated on a straight line basis, usually over 4 years. Depreciation on assets acquired under a finance agreement reflects the term of the agreement. Individual items of equipment with a purchase price of £500 or less are written off when the asset is acquired. Fit out costs of the Church Centre are being amortised over 50 years.

Investments

Investments are valued at market value at 31 December using the bid price provided by the fund manager.

Current Assets

Amounts owing to the Group at 31 December in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncollectable.

Short term deposits include cash held on deposit with CBF Church of England Funds or with UK regulated banking institutions and investments held with regulated fund managers. Investments held as current assets are valued at market value at 31 December using the bid price provided by the fund manager.

18

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

ACCOUNTING POLICIES (CONTINUED)

Taxation

The Charity is a registered charity and has no liability to corporation tax on its charitable activities. The Subsidiary is liable to corporation tax on its taxable profits to the extent that they have not been Gift Aided to the Parent Charity.

Critical Accounting Estimates and Judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

19

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

2 FUND COMPARATIVES

Comparative figures for fund movements in the Statement of Financial Activities are as follows :

Fund movements 2019

INCOME FROM:
Donations and legacies
Other trading activities
Income from investments
Income from charitable activities
TOTAL INCOME
EXPENDITURE ON:
Expenditure on charitable activities
Expenditure on raising funds
TOTAL EXPENDITURE
Net income before gains/(losses) on investments
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
TOTAL FUNDS AT 1 JANUARY 2019
TOTAL FUNDS AT 31 DECEMBER 2019		 Unrestricted
Restricted
Endowment
Total
£
£
£
£
443,736
6,273
-
450,009
327,515
-
-
327,515
15,881
-
-
15,881
4,061
-
-
4,061
791,193
6,273
-
797,466
721,275
4,571
-
725,846
114,569
-
-
114,569
835,844
4,571
-
840,415
(44,651)
1,702
-
(42,949)
29,001
-
19,749
48,750
(15,650)
1,702
19,749
5,801
1,256,809
8,680
105,469
1,370,958
1,241,159
10,382
125,218
1,376,759

20

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

3
INCOME
Note
3(a)
Donations and legacies
Planned giving
Gift aid donations
Income tax recoverable
Youth Worker Appeal Fund
14(a)
Asylum Seekers' Appeal Funds
14(b)
Financial Support Fund
14(c)
Other planned giving
Collections
Sundry donations
Legacies
3(b)
Other trading activities
Church room hire
St George’s Centre Limited
Car parking rental income
Rent of 22 Hanover Square/46 Vesper Lane
Feed in tariff
3(c)
Income from investments
Bank interest
Dividends and fund distributions
3(d)
Income from charitable activities
Sundry income
3(e)
Fees
TOTAL INCOME		 Unrestricted
Funds
Restricted
Funds
TOTAL FUNDS
2020£
£
£
£
£
341,395
-
341,395
290,860
87,311
87,311
77,655
-
3,990
3,990
4,140
-
2,836
2,836
2,133
-
10,921
10,921
-
49,647
-
49,647
45,408
1,685
-
1,685
8,770
21,277
-
21,277
16,043
1,000
-
1,000
5,000
502,315
17,747
520,062
450,009
7,403
-
7,403
13,910
60,150
-
60,150
292,403
12,280
-
12,280
19,544
2,000
-
2,000
-
1,684
-
1,684
1,658
83,517
-
83,517
327,515
2,271
-
2,271
2,713
15,897
-
15,897
13,168
18,168
-
18,168
15,881
69,872
-
69,872
2,612
844
-
844
1,449
70,716
-
70,716
4,061
674,716
17,747
692,463
797,466

21

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

3(e) Sundry income

Sundry income includes £58,343 receivable in grants under the government’s Coronavirus Job Support Scheme and £10,000 from the Local Authority Discretionary Grants Fund.

4
EXPENDITURE
Note
4(a)
Expenditure on charitable activities
Missionary & charitable giving
Mission partners & mission donations
St Hild College donation
Vicar's Discretionary Fund
Asylum Seekers' Appeal Funds
14(b)
Financial Support Fund
14(c)
Ministries
Youth Work
Student ministry
Music and drama
Other church groups
Lighthouse
Outreach events
Bookstall
Sundry
Fees
Church running & maintenance
Church running expenses
Caretaker, verger and cleaner
Staff housing		 Unrestricted
Funds
Restricted
Funds
TOTAL FUNDS
2020 2019
£
£
£
£
46,811
-
46,811
49,350
5,000
-
5,000
5,000
-
-
-
260
-
2,632
2,632
431
-
-
-
-
51,811
2,632
54,443
55,041
4,788
-
4,788
6,542
2,406
-
2,406
5,317
1,912
-
1,912
2,167
1,911
-
1,911
5,608
21,250
-
21,250
22,500
223
-
223
4,137
-
-
-
-
1,881
-
1,881
1,470
844
-
844
1,449
35,215
-
35,215
49,190
29,178
-
29,178
43,365
26,780
-
26,780
22,945
24,199
-
24,199
19,694
80,157
-
80,157
86,004

22

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

4
EXPENDITURE (continued)
4(a)
Expenditure on charitable activities (contd.)
Staff
Staff working expenses
House for duty pastor
Visiting preachers
Worship/communication pastors
Youth, student & family pastors
14(a)
Interns
Church management & administration
Office salaries
Technical manager
Bookkeeping
Computer Software
Telephones
Photocopying
Print, postage and stationery
Website, publicity and PA
Bank charges
Sundry expenditure
Depreciation
Governance costs
4(c)
Church Centre
Diocesan Parish Share
Total expenditure on charitable activities
4(b)
Expenditure on raising funds
St George’s Centre Limited
7(b)(ii)
TOTAL EXPENDITURE		 Unrestricted
Funds
Restricted
Funds
TOTAL FUNDS
2020 2019
£
£
£
£
3,026
-
3,026
6,894
10,000
-
10,000
10,000
85
-
85
32
37,441
-
37,441
35,903
70,569
3,990
74,559
77,564
6,744
-
6,744
15,337
127,865
3,990
131,855
145,730
72,944
-
72,944
85,324
-
-
-
3,989
18,957
-
18,957
19,929
614
-
614
776
1,148
-
1,148
1,072
714
-
714
1,570
154
-
154
2,759
1,383
-
1,383
1,761
1,953
-
1,953
1,939
188
-
188
849
12,777
-
12,777
15,917
2,754
-
2,754
2,880
102,720
-
102,720
105,095
216,306
-
216,306
243,860
150,219
-
150,219
146,021
661,573
6,622
668,195
725,846
41,695
-
41,695
114,569
703,268
6,622
709,890
840,415

23

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

4(c) Governance costs

Governance costs comprise expenditure on assisting the Trustees meet their statutory obligations and include Independent Examination, £1,254 (2019 £1,380) and a portion of administration expenditure, £1,500 (2019 £1,500).

5(a) STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Pension costs		 2020
2019
£
£
282,069
325,315
18,568
20,977
15,594
18,153
316,231
364,445

No employee received emoluments of more than £60,000 (2019: None).

The average number of employees during the year, including full and part time, was 30. This approximates to 16 full time equivalent staff.

5(b) PAYMENTS TO/DONATIONS FROM PCC MEMBERS

Expenses totalling £2,005 (2019 £3,791) were paid during the year to or on behalf of members of the clergy who sit on the PCC. None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity. The total donations received from serving PCC members in their capacity as Trustees during 2020 amounted to £41,784 (2019 £41,490).

6 DESIGNATED FUNDS

Unrestricted funds include amounts which have been designated by the PCC for specific purposes and are set out in Note 13.

24

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

7
FIXED ASSETS
7(a)
Tangible Fixed Assets
Cost or valuation
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
Eliminated on disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
The freehold land and buildings comprise:		 Group & Charity
Freehold
Leasehold
Furniture
TOTAL
Land and
Land and
and
Buildings
Buildings
Equipment
£
£
£
£
158,794
482,026
517,197
1,158,017
-
-
30,189
30,189
-
-
-
-
158,794
482,026
547,386
1,188,206
-
93,982
484,894
578,876
-
7,093
16,478
23,571
-
-
-
-
-
101,075
501,372
602,447
158,794
380,951
46,014
585,759
158,794
388,044
32,303
579,141

46 Vesper Lane - original cost £60,175

At a meeting on 12 March 2018, the PCC resolved to sell 46 Vesper Lane. However, significant costs (as yet unquantified) will need to be incurred in repairing the boundary wall and replacing the garage before the property can be offered for sale. Remedial works have been further delayed during 2020 as protracted negotiations have continued with Leeds City Council to determine an equitable apportionment of the repair costs between it and St George’s. In the circumstances, it is not felt appropriate to either reclassify or revalue this property at the present time.

22 Hanover Square - original cost £74,840

The leasehold land and buildings include:

Flat 4, St George's Apartments - the cost of £127,372 is not being depreciated on the grounds that the residual value is considered to be at least equal to original cost

Church Centre - fit out costs of £354,654 are being amortised over 50 years

25

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

Freehold reversionary interest

In September 2004, the PCC granted a 150 year lease to Brampton Asset Management in return for a capital sum, which facilitated the redevelopment of land adjacent to St George’s Church. No ground rent is receivable in relation to this transaction. Given the length of the leasehold term remaining, it is estimated that the present value of the freehold reversionary interest is not material and therefore no figure has been included in these accounts.

7(b) Investment Assets

Investment assets comprise (i) endowed securities held by the Diocese as custodian trustee and (ii) one ordinary share in St George's Centre Limited, a wholly owned subsidiary.

(i) The endowment holdings are held by the Diocese of Leeds as custodian trustee on behalf of the PCC. All shares shown below are investments in the CBF Church of England Investment Fund.

Status
Number of
shares
Endowment Fund
Endowment
6,060
Curacy Fund
Endowment
487		 Market Value – Group & Charity
At 1.1.20
Increase in
At 31.12.20
value
£
£
£
115,904
8,004
123,908
9,314
643
9,957
125,218
8,647
133,865

Dividends from the Endowment and Curacy funds are retained by the Diocese and used to fund clergy stipends. The capital value of investments classed as endowment must be maintained in perpetuity.

(ii) The ordinary share in St George's Centre Limited was acquired on the incorporation of the company. Its result for the year is shown below. Net assets at 31 December 2020 amounted to £1 and this is deemed to represent the current value of the investment.

Income from room hire, catering and equipment hire
Direct costs and overheads
Amount Gift Aided to Parent Charity
Net profit		 2020
2019
£
£
60,150
292,402
(41,695)
(114,569)
(18,455)
(177,833)
-
-

26

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

8
DEBTORS
Income tax recoverable
Prepayments and debtors		 Group
Charity
2020
2019
2020
2019
£
£
£
£
19,910
18,767
19,910
18,767
17,041
70,945
10,224
34,173
36,951
89,712
30,134
52,940
9 INVESTMENTS
CCLA - The CBF Church of England
Investment Fund
CCLA – COIF Charities Property Fund		 Market Value - Group & Charity
01.01.20
Disposals
Gains/
31.12.20
(losses)
£
£
£
£
156,366
-
11,172
167,538
236,022
-
(11,893)
224,129
392,388
-
(721)
391,667
10
LIABILITIES: AMOUNTS FALLING DUE
WITHIN ONE YEAR

2020
£
Accruals, creditors and deferred income
46,864
46,864
11
LIABILITIES: AMOUNTS FALLING DUE AFTER ONE YEAR
Equity Sharing Loan – 46 Vesper Lane
2020
£
46,864		 Group
Charity
2019
2020
2019
£
£
£
54,045
39,903
32,430
46,864 54,045
39,903
32,430
Group & Charity
2020
2019
£
£
39,000
39,000
39,000
39,000

27

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

The Equity Sharing Loan was advanced by the Church of England’s Central Board of Finance (‘CBF’) to assist with the purchase of 46 Vesper Lane. There is no fixed date for repayment but in the event of a sale, the CBF are entitled to share in the proceeds in proportion to the amount advanced as a percentage of the original purchase price. Interest is charged quarterly and increases annually in line with the index of retail prices. As indicated in Note 7(a), there is an intention to sell the property. However, as the loan is repayable from any proceeds, the loan continues to be disclosed as falling due after one year.

12 ANALYSIS OF NET ASSETS BY FUND

Fixed Assets
Current Assets
Current Liabilities
Deferred Liabilities		 Group & Charity
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
£
£
£
£
585,759
-
133,865
719,624
711,991
21,507
-
733,498
(46,864)
-
-
(46,864)
(39,000)
-
-
(39,000)
1,211,886
21,507
133,865
1,367,258

ANALYSIS OF NET ASSETS BY FUND (PREVIOUS YEAR)

Fixed Assets
Current Assets
Current Liabilities
Deferred Liabilities		 Group & Charity
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
£
£
£
£
579,141
-
125,218
704,359
755,063
10,382
-
765,445
(54,045)
-
-
(54,045)
(39,000)
-
-
(39,000)
1,241,159
10,382
125,218
1,376,759

13 UNRESTRICTED FUNDS

Unrestricted Funds are divided into Designated and General Funds.

Designated funds comprise the net book value of functional fixed assets together with those funds which the PCC has decided to earmark for specific purposes. Earmarked funds include:

Repair and Replacement Fund – reserves set aside to meet the anticipated cost of major

repairs or replacements of functional fixed assets over the next five years (previously ten years)

28

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

Strategic Mission Fund – a fund designed to finance key mission initiatives, in conjunction

with other partners sharing similar goals to St George’s

General Funds at 31 December 2020 amounted to £ 264,327 and include £106,000 earmarked as a contingent sum to meet unplanned reductions in primary sources of income, namely voluntary giving and Church Centre revenues and any contingent liabilities. The balance of Undesignated Reserves remains unallocated.

Details of these different Funds, their movements during the year and balances at 31 December 2020 are set out below.

13 UNRESTRICTED FUNDS (continued)

Group & Charity

ANALYSIS OF MOVEMENTS IN
UNRESTRICTED FUNDS
Designated Funds:
Net book value of tangible fixed assets
Less: related borrowings
Closing balance
Repair and Replacement Fund
Strategic Mission Fund
Free reserves:
General Funds
Total unrestricted funds		 Balances
at 1.1.20
Movements
in
(Movements
out)
Transfers
Balances
at 31.12.20
£
£
£
£
£
579,141
30,189
(23,571)
-
585,759
(39,000)
-
-
-
(39,000)
540,141
30,189
(23,571)
-
546,759
451,250
(28,000)
18,500
(80,950)
360,800
45,000
-
(5,000)
-
40,000
1,036,391
2,189
(10,071)
(80,950)
947,559
204,768
(2,189)
(19,202)
80,950
264,327
1,241,159
-
(29,273)
-1,211,886

The transfer of £80,950 out of the Repair and Replacement Fund mainly comprises a reduction in the provision for the cost of removing cladding from the exterior of the St George Building. The original provision of £100,000 was made prior to the Government announcement that a fund (the ‘Building Safety Fund’) had been established to assist leaseholders who could not afford the cost of removing and replacing cladding to residential buildings which did not meet current safety requirements. Subsequent to the year-end, the Building Safety Fund confirmed that a grant would be made available to meet the full cost of cladding remediation works to the St George Building . Further details of the remediation project and the financial implications for St George’s are given in Note 15 below.

The movement in the Strategic Mission Fund represents a donation of £5,000 to St Hild College to facilitate the recruitment of a Director of Church Planting and Revitalisation. A further £5,000 towards this post will be donated to the College in 2021.

29

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

General Funds partly comprises a Contingency Fund to meet the additional financial demands which could arise from a downturn in St George’s principal sources of income, namely voluntary giving and Church Centre revenues and in meeting the potential liability which could arise from pension fund obligations (see Note 15).

13 UNRESTRICTED FUNDS (continued)

ANALYSIS OF MOVEMENTS IN
UNRESTRICTED FUNDS – PREVIOUS
YEAR
Designated Funds:
Net book value of tangible fixed assets
Less: related borrowings
Closing balance
Repair and Replacement Fund
Strategic Mission Fund
Free reserves:
Undesignated
Total unrestricted funds		 Balances
at 1.1.19
Movements
in
(Movements
out)
Transfers
Balances
at 31.12.19
£
£
£
£
£
597,268
9,700
(27,827)
-
579,141
(39,000)
-
-
-
(39,000)
558,268
9,700
(27,827)
-
540,141
555,000
(9,700)
- -
(94,050)
451,250
50,000
-
(5,000)
-
45,000
1,163,268
-
(32,827)
(94,050)
1,036,391
93,541
17,177
- -
94,050
204,768
1,256,809
17,177
(32,827)
-1,241,159

14 RESTRICTED FUNDS

The Restricted Funds include monies given for the Youth Worker Appeal Fund (donations towards the cost of employing a Youth Pastor), Asylum Seekers’ Appeal Funds (monies donated to support asylum seekers within the church) and the Financial Support Fund (donations to support those experiencing financial hardship).

Movements in these funds are as follows:

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

14(a)
Youth Worker Appeal
Opening Balance at 1 January
Incoming resources
Outgoing resources
Closing balance at 31 December
14(b)
Asylum Seekers' Appeal Funds
Opening Balance at 1 January
Incoming resources
Outgoing resources
Closing balance at 31 December
14(c)
Financial Support Fund
Opening Balance at 1 January
Incoming resources
Outgoing resources
Closing balance at 31 December		 2020
2019
£
£
-
-
3,990
4,140
(3,990)
(4,140)
-
-
2020
2019
£
£
10,382
8,680
2,836
2,133
(2,632)
(431)
10,586
10,382
2020
2019
£
£
-
-
10,921
-
-
-
10,921
10,586
-10,382

The Financial Support Fund was established during 2020 to assist members of the congregation or those with a strong affiliation to St George’s to access funds for the purpose of alleviating severe financial hardship.

15 CONTINGENT LIABILITIES

THE CHURCH OF ENGLAND PENSIONS BOARD AND THE CHURCH WORKERS PENSION FUND (‘CWPF’)

Until 30 April 2018, the PCC actively participated in the CWPF having at least one of St George’s lay staff employees enrolled as a member. On that date, all such members and the employer ceased contributing to the CWPF with members (ie former employees) being entitled to draw their pension benefits. St George’s has effectively left the CWPF scheme as an active employer.

As a significant proportion of the CWPF is a final salary pension scheme, it is obliged to carry out triennial actuarial valuations to determine the Scheme’s financial position. The last such valuation carried out at 31 December 2019

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

established that the Scheme was in deficit meaning that the value of its obligation to pay pension benefits in the future was greater than its assets. In these circumstances, a scheme actuary can apportion the scheme deficit between all the contributing employers and establish what is known as a Section 75 Debt. Section 75 of the Pensions Act 1995 requires employers leaving a pension scheme to fully fund their liabilities before they leave. On this basis, the debt calculated in respect of St George’s has been estimated to be £45,800 plus cessation expenses.

The Church of England Pensions Board has offered to postpone a demand for payment of St George’s Section 75 Debt in anticipation of the CWPF being able to improve its financial position in the future and eliminate the deficit. This is known as a ‘Deferred Debt Arrangement’. The PCC has agreed in principle to accept the Pension Board’s offer, subject to resolving a number of queries raised by St George’s relating to the methodology applied in calculating some of the member benefits. These enquiries had not been resolved at the balance sheet date. Accepting a Deferred Debt Arrangement will not, of course, guarantee that in the future, the CWPF deficit can be eliminated or that it might not increase in the light of further actuarial valuations. In the circumstances, the potential Section 75 Debt has been disclosed as a contingent liability which will be subject to periodic review.

REMEDIAL CLADDING WORKS TO THE ST GEORGE BUILDING

Plans to remediate the non-compliant cladding attached to the St George Building are well advanced with the work tendered and costed at approximately £1.6m. Significantly, the government’s Building Safety Fund has agreed to finance this work so that none of the cost will fall to be met by leaseholders. Work is planned to commence in Spring 2021 and last approximately 8 months. Some further work will be required to remove timber balconies which are also deemed to be combustible but this is not eligible for a government grant and the estimated cost of £190,000 will need to be met by leaseholders. St George’s Church will be required to contribute under the terms of its leases and the cost is estimated to be approximately £26,000. An initial provision of £100,000 was previously made through the Repair and Replacement Fund before it had been established that a government grant for cladding remediation would be awarded. That provision has now been reduced to meet the lower cost of replacing only the balcony timbers and is shown as part of the movement in the Repair and Replacement Fund in Note 13.

16 FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS
2020 2019
£ £
Carrying amount of Financial Assets
Financial assets carried at fair value 525,532 517,606
Financial assets measured at amortised cost 345,790 432,900
Carrying amount of Financial Liabilities
Financial liabilities measured at fair value - -
Financial liabilities measured at amortised cost 79,150 87,809

At the year end, the PCC had authorised but not contracted for the purchase of replacement chairs at an estimated cost of £72,000. No Capital expenditure had been authorised or contracted for at the end of 2019.

17 CAPITAL COMMITMENTS

32

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Notes to the Financial Statements

For the year ended 31 December 2020

18
RECONCILIATION OF NET MOVEMENTS IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net movement in funds
Add back depreciation charges
Losses/(gains) on endowment investments
Deduct investment income
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in debtors
(Decrease)/increase in creditors		 FROM OPERATING
2020
2019
£
£
(9,501)
5,801
23,571
27,827
(8,647)
(19,749)
(18,168)
(15,881)
-
-
52,761
(17,721)
(7,181)
(25,375)
32,835
(45,098)

33

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF LEEDS ST. GEORGE

Independent examiner’s report to the PCC of St. George’s, Leeds

I report to the Trustees on my examination of the accounts of the Charity for the year ended 31 December 2020.

Responsibilities and basis of report

As the Charity Trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed: Sally Templeman MA, CA 4 Lawn Avenue Burley in Wharfedale Ilkley LS29 7ET

Date: 15 June 2021

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