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2020-12-31-accounts

STMARYB the church at Islington's heart Annual Report For the year 2020

The Parochial Church Council of St Mary, Islington Contents

Annual Report 2 - 20
Independent examiner’s report 21
Statement of financial activities 22
Balance sheet 23
Statement of cash flow 24
Notes to the financial statements 25 - 34

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

The PCC of St Mary Islington is registered as a charity under the name Parochial Church Council of the Ecclesiastical Parish of St Mary, Islington.

Registered charity number: 1131900.

Our address: St Mary's Church, Upper Street, Islington, London N1 2TX.

This report was approved by the Parochial Church Council in the week commencing 19 April 2021.

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

Introduction

On the one hand, this report is a formal account of how St Mary’s has worked for the public benefit during 2020, using the assets entrusted to it. Yet it is more than that. It is also a record of the dynamic life of the people of this parish and this church as they seek to live out the gospel and grow God’s Kingdom in Islington. We hope that as you read it you will get a sense of the story of this parish, and a glimpse of God at work through the people who live, work and worship here.

The people of St Mary’s have worshipped God on this site for a thousand years or more. Islington is a dynamic and ever-changing place. St Mary’s too has been in transition, treading new paths. Our new Vicar, Reverend James Hughesdon was licenced to St Mary’s on 31 January 2021.

He comments below:

It is a joy to write this as the new Vicar of St Mary’s following the vacancy. I am grateful to all those who have carried so much responsibility for the church and parish over the last two years. As a family we are grateful for the welcome we have received even in these strange times.

The last twelve months have been a difficult time for everyone in this country with the impact of Coronavirus and the restrictions needed to protect the most vulnerable in our society. Amid these significant challenges, we have all had to rediscover how to be the body of Christ and people of faith. I expect many of us have learnt something new about God’s presence with us in our homes, in creation and in silence. Giving thanks for the ongoing success of the vaccination programme, looking forward to the lifting of restrictions, and returning to worship in the church building as well as online, we should try to hold onto those new things we have learnt this last year of God’s presence in our midst.

Nick Sykes, Churchwarden and PCC chair during the vacancy comments:

Looking back over 2020, it has been an extraordinary year. With the pandemic, lockdowns and the church buildings closed for much of the period, it could have been a year of 'marking time' at best. But it doesn't feel like that at all. It feels that it was a year in which the exceptional circumstances enabled us to learn more about God, about each other and about ourselves as individuals, in ways that we could not possibly have anticipated.

The necessary closing of the buildings for much of the year forced us to think hard and in new ways about 'where is God?' and also 'how are we a community when we can't meet together in one place?' God being everywhere became more real to us when we experienced Him in the gardens, the streets and the parks, and in nature generally. And not meeting physically as a community stimulated other ways of being together whether that was on-line for morning services or home groups, catching up on the phone, walking and talking, or even cards or small gifts to tell others that they are in our thoughts and prayers, even if a shake of the hand or a hug was forbidden.

On-line services haven't been for everyone but they have brought us some inspirational Barnabas spots. And location is no longer a barrier to participation in the service so our friends from far away have been able to join as part of St Mary's family, which has been

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT

For the year ended 31 December 2020

________ great. A new bible study group, the Upper Room has thrived on-line bringing a wide range of people together for weekly discussion and prayer. Although we yearn to be back in church and able to meet together without restrictions, we have also learnt new ways of being a community, of communicating and of sharing with each other the good things we receive from God.

We approach the year ahead with much confidence and hope. We are delighted to welcome James as our new vicar and his family to be part of our family after a two year interregnum. In many ways our church community feels stronger than it was a year ago. We look forward to our newly-refurbished church being open for services and private prayer and we have a new and exciting space in the North garden which we look forward to using. It feels as if we are entering a new and exciting phase in the life of St Mary's church.

As we look ahead to all that God has in store for St Mary’s and our community let us be expectant about all that God will do, faithful in prayer and love, and confident in the good news of Jesus Christ.

Rev. James Hughesdon Vicar

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

Our purpose

St Mary’s is a parish church, serving and cherishing the people of the whole parish. We are part of the Church of England and a registered charity. Our charitable objects are defined simply as: Promoting in the ecclesiastical parish the whole mission of the Church.

Our focus is to provide for the worship of God, evangelism and pastoral care, making Islington a better place for all its people. We do this by working at the heart of Islington where we have had a church building for over a thousand years. We work with our partner charity, Mary’s, at our neighbourhood centre, have established links with St Mary’s Church of England Primary School, partner charities and organisations, as well as a very wide range of local and international mission partners.

We aim to follow Jesus Christ by loving God, our neighbours and to seek the Kingdom of God wherever we can.

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

What we do

Worshipping God

Worship is the beating heart of the church. At St Mary’s we seek to place prayer and worship of God at the heart of our life as people of faith. We seek to become people of God who seek the mind of God, by stopping and by listening. It is as the community of worshippers gathers on Sundays and throughout the week that we draw inspiration, challenge and encouragement in joining in God’s work in the wider world.

Attendance at St Mary’s for 2020 was very different from that of 2019. On 23 March 2020, England was forced into a national lockdown in order to protect the population from surging cases of the new coronavirus: Covid-19. The lockdown forced all churches to close their doors for both public worship and private prayer until the end of July.

Holy Week services were streamed online and we held the first online service via Zoom at 11am on Easter Day. A weekly pattern of worship continued throughout 2020, including an evening communion in church when permitted. The figures below reflect both online and in church service attendance for the 44 weeks of 2020 where online or in church services were available.

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

________

We aim to make our worship accessible to people who may never have worshipped before, offering welcome and hospitality. Even as we worship God together, we seek to serve the community around us.

St Mary’s had a responsibility not only to keep worshippers safe but also the worship team and volunteers. To this end we limited the number of people that could physically attend the services to 45, not including church staff and volunteers. The season of Christmas 2020 challenged church attendance more than any other time of the year. A new stronger variant of Covid-19 forced a second national lockdown in November, with London staying in Tier 4 of the lockdown measures. St Mary’s hosted a full schedule of Christmas services: a Christingle service held via Zoom; lunchtime carols for Islington in church; two candlelit carol services in church; a Christmas Eve Holy Communion in church as well as two services held in tandem on Christmas Day morning, one in church and one via Zoom. The number of people attending the candlelit carol services was hugely bolstered by both services being streamed online, 590 people viewed the services made available virtually.

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

Encouraging discipleship

Jesus left his followers at his ascension with the commission to help other people in their discipleship. Two thousand years later, we seek to fulfil this commission by helping people draw close to God, learn from each other and develop their gifts and confidence. We seek to share the good news of Jesus Christ by what we say and do, to help everyone to know Jesus better and become his followers. We see the growth of faith as an ongoing process which, like the mustard seed, will flourish even from small beginnings.

We warmly welcome adults and children to be baptised and confirmed. Last year before lockdown three people were baptised and confirmed by Bishop Joanne at St Mary’s.

The ‘Upper Room’ developed as a weekly online group in response to the social constraints of lockdown. It is an opportunity to meet, like the disciples, in the spirit of friendship in order to discuss the scriptures, to share experience, to deepen faith, to encourage each other and to enjoy fellowship. It is open to anyone wishing to join in. About 12-15 people met each week from April 2020, and the group continues.

‘A Thought for the Day’ ran on-line over the course of 2020 to facilitate a daily reading and reflection of the daily lectionary readings and to give encouragement in a pattern of daily quiet and prayer.

Our home groups and prayer triplets allow people to grow deeper in their faith through shared study, support and prayer. We currently have two home groups. We hope further groups may begin soon.

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

Seeking God’s Kingdom

Our mission is not our own. It is God’s mission in which we seek to join. As a large parish church in the heart of Islington with a historic civic presence, this is sometimes in very public ways. More often it is in ways that are small and hidden, yet we trust that God will grow these green shoots. St Mary’s prays to discern where we can make a difference. Above all we seek to be outward-looking and welcoming, asking God’s help that our church community may be a living parable of the life of the Kingdom.

St Mary’s is committed to supporting the Church of England’s presence in areas where ministry is difficult to sustain financially. The PCC maintained its level of giving to the Church of England, contributing £90,000 to the Diocese of London’s Common Fund. Contributions also continued to be made to our mission partners, on the recommendation of our Mission Giving Committee. The PCC approved grants of £16,000 as listed below.

Organisation Amount
Al-Ahli Arab Hospital £1,500
Caris Bereavement £2,500
Compassion £1,008
Green Christian £1,100
Hospice Care Kenya £2,000
Islington Centre for Refugees and Migrants £2,102
Islington Foodbank £250
Kanaama £1,500
Keith Waddell-Uganda ophthalmology £1,500
Margins Project,Union Chapel £1,400
The Children’s Society £140
Stuart Low Trust - Charity of Year £1,000
TOTAL £16,000

A significant impact in Islington is made through our partner charity, Mary’s. We invest our buildings and resources so that this independent charity can deliver and extend our local social action, and church members sit on Mary’s board of trustees. Mary’s runs a youth club, pre-school, holiday playschemes and hosts a wide range of community activities in our church crypt and Neighbourhood Centre which were significantly reduced in 2020 due to Covid-19. In 2020 the church received a net rent of £15,000 from Mary’s for use of the crypt and neighbourhood centre which was only partially used over the pandemic period.

We are delighted to support the work of St Mary’s Church of England Primary School in enabling children to flourish. Before lockdown our interim minister continued the work of regularly visiting the school to lead assemblies, though a joint school Prayer Project in church had to be postponed.

.

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

Caring for people

We value keeping the church building open every day, offering people the opportunity to find quiet and rest, a chance to sit down, to recover and to pray. Once lockdown was enforced the church remained closed until July when we reopened daily for private prayer and from August for weekly 6pm service until the end of the year. We are grateful to the borough of Islington, which maintains the church gardens for public use.

At the beginning of 2020 groups included: Chat and Cuppa Tuesday drop-in; weekly term time Bible study group; monthly Twenties and Thirties; family lunches; gardens group; Young at Heart lunches for older people. All were put on hold after the national lockdown was enforced on 23 March and none restarted throughout 2020. Organised activities like home groups are very often the place where people build trusting relationships and find opportunities to support each other and were moved to virtual meetings via Zoom.

We reached out to our older, and often offline, church members each week with a posted notice sheet and weekly service booklet as well as a hand delivered Christmas goody bag.

We conducted an online survey inviting feedback from church attenders and the wider parish which had a good response. We asked responders how they were experiencing lockdown and in what ways St Marys could best support the community. It enabled a number of changes to be made.

In 2020, we conducted one emergency wedding (offsite) and six funerals. Special services to respond to the needs of the wider community include a Service of Remembering for all who have been bereaved, whether recently or in years past, included those whose funerals were held at St Mary’s over the previous year.

Our pastoral team meets fortnightly and we consider wider pastoral issues, as well as the specific requests that people bring to us. We set up a dedicated email address allowing anyone in the community to contact for prayer requests.

We take our safeguarding responsibilities seriously, and are fully committed to the House of Bishop’s Policy Statement on Child Protection and Safeguarding and have implemented the Diocese of London’s Safeguarding Policy in our parish. We have a designated officer responsible for safeguarding.

During 2020, where possible, we continued our weekly collection of food items for Islington Food Bank with a focus on this at harvest festival. Members of the congregation also participated in the Angel Tree project, donating money to buy Christmas gifts for children whose parents are in prison.

We were unable to hold our Christmas Fair in 2020 but we hosted Cards for Good Causes.

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

Telling our story

As well as telling God’s story, St Mary’s is also a part of the story of Islington itself. As the local parish church St Mary’s is the place which holds many of the vital memories of the neighbourhood, and a place which gives identity and significance to residents. We are privileged to help people locate themselves in our longer and larger story.

The phrase ‘The Church at Islington’s Heart’ has served to express the way that St Mary’s is located on the ground where Islington’s story began and reflects the warm feeling that the wider community feels towards its original church. And we use ‘The Heart of Islington’ to give focus and identity to our project to help Islington understand its origins.

Being creative in our use of social media, through our FaceBook, Twitter and Instagram accounts, and maintaining our website, enables us to reach many more people and make important connections through sharing our stories.

St Mary’s is also part of the nation’s story. To celebrate the 75th anniversary of VE Day, we produced an oral history video featuring members of the congregation who remembered the first VE Day in 1945. Over 300 people viewed the video and it was also used by a local school. Our wonderful set of eighteenth century bells are regularly rung by an active and committed team coordinated by Deborah Bolton. Despite lockdown St Mary’s was able to join with other churches to ring bells to commemorate the 3rd anniversary of Grenfell Tower fire on 14 June.

Deanery Synod

The synod normally meets three times a year, to receive information about central church initiatives, and to allow Islington’s churches to discuss matters of common interest. Its members are the parish clergy and lay representatives from each church. Synod appoints some of the governors of each CofE school in the borough and trustees to a couple of charities, and is the electorate that votes for members of the diocesan and general synods.

In 2020, only one meeting was held before the Covid pandemic arrived; there were also two meetings via Zoom that were only partly successful. At the last meeting of 2019 the synod had had its first opportunity to discuss what should be in the diocesan plan for the next decade: the strongest message that it sent to the diocese was the necessity for the plan to concentrate on climate change. There was further discussion at the February 2020 meeting, when synod also noted a paucity in the borough of youth work that was inclusive of those with disabilities, the need for parishes to work together more, and to identify ‘centres of excellence’ whose skills could be shared.

It was apparent, however, that the diocesan hierarchs had already decided on the priorities for Vision 2030. They were to focus on a) young people, b) growing the church through new worshipping communities, c) deepening discipleship, and d) being socially compassionate. Responding to the climate crisis turns out, in the Vision 2030 plan published late in 2020, to be just one of six areas that ‘compassionate communities’ should be concentrating on. So ended the second attempt by Islington deanery to encourage the diocese to take the climate emergency seriously.

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

Managing resources

We take a positive and creative view of resources. They are not merely assets for the life of the church. They are often the means through which really effective activity takes place. We don’t worship our buildings or make our finances the ultimate goal of our organisation. But we don’t see these as spiritually irrelevant either.

Property

The Covid pandemic delayed final completion until October 2020 of the major project undertaken by Bakers of Danbury, largely in 2019, under which the portico was rebuilt, the organ loft roof repaired, new access created into the nave roof void, and joinery work undertaken in the nave including a new servery and facilities for flower arranging. New lighting was installed on the portico in February 2020.

A second major project started in May 2020 under which the north gardens were re-ordered and opened up, with a new space created for outside events. Harry Gray, artist, designed and cast bronze roundels depicting significant figures associated with St Mary’s which have been inlaid in the main pathway running through the site. The overall project was designed by Robert Myers Associates, executed by Warwick Landscaping, managed by Islington Council and funded by a £500k contribution from the developers of Islington Square. The project was overseen by a joint St Mary’s - Islington Council steering group. The work was completed in November.

The church architect, Kelley Christ, undertook her quinquennial inspection of the church in July. Her report contained 67 recommendations. Work on 26 of them (including the four urgent ones) has now either been completed or is under way. The fixed wiring was inspected in October, and new humidifiers were installed for the organ and repairs undertaken to the organ blowers in November.

Over the summer Fullers (Builders) Ltd carried out trials and sample work to determine how best to carry out repairs and refurbishment work to the church interior. Based on their findings we made an application to Cloudesley to support a refurbishment project. They generously awarded us a grant of up to £45k which has enabled this work to go forward in Spring 2021.

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

EcoChurch

This is a scheme designed to help churches respond better to the CofE’s fifth mark of mission - caring for God’s creation. It requires us to survey our performance in five areas: worship and teaching, management of buildings, management of land, community and global engagement, and lifestyle (both of the church and of individuals). Depending on the church’s performance, it may achieve a bronze, silver or gold award.

The plaque for the bronze award we gained in 2019 was mounted at the back of the nave in summer 2020, but few were able to see it because of Covid closures. We held Climate Sunday in early September, with a Zoom service mostly devoted to the climate emergency. The service sheet included advice on the most useful ways for individuals to reduce their carbon footprints. Thereafter most weekly news sheets have included an ‘Ecotip’. The main area of activity has been that of the garden group, led by Sally Hull, who have transformed the rose garden, in the south-east corner of the churchyard, with soil improvement and some wonderful new planting.

The scheme encourages lots of small steps to achieve ecological improvement. We have reached silver standard in the first two areas listed above, but will need to do more in the other three areas. The EcoChurch group has some ideas for this but would welcome suggestions, particularly from younger members of the congregation.

People

Our staffing structure at the end of 2020 was:

A very large number of volunteers support the work of the church and it’s not possible to list all of their roles in this report. Among them, significant leadership responsibility is undertaken by two Licensed Lay Ministers, three churchwardens, Sacristan, treasurer, PCC Secretary and assistant churchwarden.

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

________

Financial review

The financial position of the church on 31 December 2020 and comparatives for the prior year, as detailed in the accounts, are summarised as follows:

` 2020 2019
£ £
Unrestricted income 216,275 304,036
Unrestricted expenditure (201,424) (296,294)
Restricted income 76,366 133,973
Restricted expenditure (86,378) (501,101)
Net income / (expenditure) 4,839 (359,386)
Unrestricted General funds 166,333 139,846
Unrestricted funds designated to the Fabric of the Church 127,169 138,805
Revaluation Reserve Fund on Neighbourhood Centre 2,332,406 2.332.406
Restricted funds 93,124 103,136
Total funds 2,719,032 2,714,193

Financial review of the position at the reporting date, 31 December 2020.

The PCC considers the financial performance of the church during the year to have been robust despite the uncertain economic circumstances brought on by the global pandemic.

Key features during 2020 were:

A generous legacy (included in Restricted funds) was received by the church in May 2020; a small amount of which has so far been spent on the support of classical music. 2020 saw major Heart of Islington projects continuing and expenditure out of restricted funds was mainly for the restoration of the portico and repairs to the organ.

The PCC has designated reserves of £127,169 for maintaining the interior fabric of the church.

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

Reserves

The PCC’s policy is to hold sufficient funds to enable the church to carry out its mission in the long term.

The minimum reserve is set at three months' operating costs, on the understanding that this would provide adequately for the ongoing costs of the church. With unrestricted General reserves of £166,333 (2019 £139,846) this policy is adequately met.

Included within Unrestricted funds at 31 December 2020 the Trustees have also designated £127,169 (2019 £138,805) for the interior Fabric of the Church.

Risk management

The PCC actively review the major risks which face the charity on a regular basis, with a Risk Assessment report available online. They believe that maintaining reserves at adequate levels, combined with an annual review of the controls over key financial systems will provide sufficient resources in the event of adverse conditions. PCC has also examined other operational and business risks and believes that the systems in place to mitigate significant risks offers adequate protection.

Since the Covid-19 pandemic started in March 2020, the church has had to close temporarily.

The PCC has taken appropriate action to ensure that the church is well placed to continue its work given the impact of Covid-19 on services, activities and income which have been adversely affected.

It was able to re-open partially in August 2020 for services of worship and is following robust guidelines and procedures to ensure the safety of its members and staff into 2021.

The church continues to hold virtual services of worship and key activities online.

Plans for the future

The church relies on the continuing generosity of its members and grants from charitable bodies and will work closely with them to ensure its continuity in these uncertain times. The financial position of the church is regularly monitored to avoid financial loss.

Thank you to everyone who gives to support the work of St Mary’s and our life together. Whether you give financial support, of your time or of your skills we give thanks that together we can build the Kingdom of God here in Islington.

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

Structure, governance and management The PCC operates within the regulation of both charity law and the Church Representation Rules and other measures. At the Annual Parochial Church Meeting held virtually via Zoom 11 October 2020, there were 176 names on the electoral roll.

In 2020, the charity’s trustees were:

Vicar: Vacant Interim Minister: The Revd Caroline Shuttleworth Churchwarden Mr Edward Adegbola Churchwarden Miss Rebecca Shilling Churchwarden Mr Nick Sykes Licensed Lay Minister Ms Elizabeth Salmon Licensed Lay Minister Mr Ian Mylam Deanery Synod Lay Representative Dr Sophie Castell Deanery Synod Lay Representative Dr Richard Nicholson PCC Member (elected) Dr Sally Hull PCC Member (elected) Mr Babatunde Awonusi PCC Member (elected) Ms Angela Cannon PCC Member (elected) Mr David Vanden Bon PCC Member (elected) Dr Patty Kostkova PCC Member (elected) Ms Anthea Nicholson PCC Member (co-opted) Ms Cheryl Barrow PCC Member (elected) Jules Cassidy PCC Member (elected) Mr John Gallagher PCC Member (elected) Ms Julia Abrey

The PCC appointed the following as its officers:

Treasurer: Ms Cheryl Barrow Secretary: Ms Rebecca Shilling Assistant Treasurer: (vacant) Assistant Churchwarden: Mr Edward Adegbola Electoral Roll Officer: Ms Harriet Maunsell Assistant Electoral Roll Officer: Dr Sally Hull Assistant Electoral Roll Officer: Ms Angela Cannon Safeguarding Officer: Ms Katy Haynes

The PCC Standing Committee, formed of the parish clergy, churchwardens, treasurer, secretary and PCC member responsible for building projects met on ten occasions to plan the business of the PCC and to transact business on its behalf under delegated authority and considered a large number of issues in relation to the mission of the church.

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT For the year ended 31 December 2020

________ The PCC made substantial grants to mission partners at home and overseas. It considered the worship of the church and the pattern of attendance, and its pastoral implications.

The PCC has applied the safeguarding policies of the Diocese of London.

The Parochial Church Council has paid due regard to the House of Bishop’s Policy Statement on Child Protection and Safeguarding Adults.

Electoral roll report for 2021

Electoral roll report for 2021

The electoral roll was revised this year, 2021. The roll was open for revision from 28 March to 18 April. However, like last year, this was an unusual year, as the church was closed for public worship for much of 2020 and services were online. The revision of the roll in 2021 was publicised through the necessary statutory notices, through the weekly notice sheet and by a video by James on the website. In addition, a number of emails or letters were sent to people who had not filled in a form, and who were thought to be eligible. Around 45 people on the electoral roll have been on it for at least ten years, and many of those have been on it for a lot longer. The electoral roll will be open again for revision after the Annual Parochial Church Meeting on 16 May. The electoral roll numbers in recent years have been as follows:

2014 - 184 2015 - 188 2016 - 191 2017 - 207 2018 - 222 2019 - 174 (after a full revision of the roll) 2020 - 176 2021 - 180

This year, three people are being removed from the roll and seven people were added. So this year, 2021, the electoral roll is 180.

Harriet Maunsell, Angie Cannon, Sally Hull

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The Parochial Church Council of St Mary, Islington

ANNUAL REPORT For the year ended 31 December 2020

________ Statement of Trustees’ Responsibilities

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 & 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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient 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 Charily (Accounts and Reports) Regulations 2008. 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.

Approved by the trustees on 27th April 2021 and signed on its behalf

Rev. James Hughesdon Vicar and Chair of the PCC

The accompanying financial statements and accounts form part of this annual report.

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The Parochial Church Council of St Mary, Islington ANNUAL REPORT

For the year ended 31 December 2020

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The Parochial Church Council of St Mary, Islington INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES For the year ended 31 December 2020

I report to the trustees on my examination of the accounts of The Parochial Church Council of St Mary, Islington for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

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

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared accounts in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no 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 trust as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities ( Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination, or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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.

Daniel Howarth (Independent Examiner)

Carter Backer Winter LLP 66 Prescot Street London E1 8NN Dated: ________30/04/2021

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The Parochial Church Council of St Mary, Islington STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2020

Note
Incoming resources
Voluntary income
2a
Activities for generating funds
2b
Income from investments
2c
Church activities
2d
Other incoming resources
2e
Total Income
Resources expended
Church activities
3b
Raising Funds
3a
Other
3c
Total Expenditure
Net Income/(Expenditure)
Transfers between funds
10
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
2020 Total
2019 Total
£
£
£
£
139,735
76,366
216,101
294,742
15,130
0
15,130
76,234
52,302
0
52,302
52,974
458
0
458
4,570
8,650
0
8,650
9,489
216,275
76,366
292,641
438,009
192,611
86,378
278,989
784,196
5,838
0
5,838
7,559
2,975
0
2,975
5,640
201,424
86,378
287,802
797,395
14,851
(10,012)
4,839
(359,386)
0
0
0
0
14,851
(10,012)
4,839
(359,386)
2,611,057
103,136
2,714,193
3,073,579
2,625,908
93,124
2,719,032
2,714,193

22

The Parochial Church Council of St Mary, Islington BALANCE SHEET As at 31 December 2020

Notes
Fixed Assets
Tangible
6
Current Assets
Debtors
8
Cash at bank and in hand
Liabilities
Creditors - amounts fall due within one year
9
Net Current Assets / (Liabilities)
Total Net Assets
Parish Funds
Unrestricted
10
Designated
Revaluation reserve on Neighbourhood
Centre
6
Restricted
10
Total Funds of the church		 2020
2019
£
£
2,410,000
2,413,035
2,410,000
2,413,035
9,126
18,845
320,635
293,678
329,761
312,523
(20,729)
(11,365)
309,032
301,158
2,719,032
2,714,193
166,333
139,846
127,169
138,805
2,332,406
2,332,406
2,625,908
2,611,057
93,124
103,136
2,719,032
2,714,193

These financial statements were approved by PCC on 27th April 2021 and signed by:

Rev. James Hughesdon Vicar

23

The Parochial Church Council of St Mary, Islington STATEMENT OF CASH FLOW For the year ended 31 December 2020

Net Cash from operating activities
Net Cash provided by (used in) operating activities
Net cash provided by/used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Reconciliation of net income/ (expenditure)
Net income before investment gains at 31 December
Adjustments for:
Depreciation charges
Decrease/ (increase) in debtors
(Decrease)/ increase in creditors
Net cash provided by/ (used in) operating activities
Analysis of cash and cash equivalents
Cash in hand		 2020
2019
£
£
26,957
(97,950)
0
0
26,957
(97,950)
293,678
391,628
320,635
293,678
4,839
(359,386)
3,035
3,035
9,719
256,266
9,364
2,135
26,957
(97,950)
320,635
293,678

24

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

1. Accounting Policies

A Accounting convention

The financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Irelandʺ (ʺFRS 102ʺ), ʺAccounting and Reporting by Charitiesʺ the Statement of Recommended Practice as it applies from 1 January 2015. The trust is a Public Benefit Entity as defined by FRS 102.

The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The accounts are prepared in sterling, which is the functional currency of the church. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

B Funds and reserves

Funds held by the PCC are:

Restricted funds –a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest; b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of the year is carried forward as a balance on the fund.

Unrestricted funds

General funds - which can be used for PCC ordinary purposes.

Designated funds – monies set aside by the PCC out of unrestricted funds for specific future projects.

In order to ensure that the PCC’s known regular financial commitments can be met when due, and to provide sufficient financial flexibility to meet unexpected expenditure, it is the policy of the PCC to seek to hold free reserves within its unrestricted funds (i.e. reserves which are not designated nor represented by that proportion of the cost of the Neighbourhood Centre which is financed from reserves) at a minimum of 3 months of anticipated expenditure. At the end of the year, this free reserves policy was met.

C Incoming resources

All incoming resources are accounted for gross.

Voluntary Income

Collections are recognised only when received. Planned giving receivable is recognised only when it is received. Income tax recoverable on Gift Aid donations is recognised when the donations are received.

25

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

_________________ Grants and legacies are recognised when the PCC is legally entitled to the amount due and the amount can be measured with reasonable reliability.

Income from investments

Rents receivable and Interest are accounted for when due and payable. A full accruals basis of interest would result in no material difference.

All other income

All other income is recognised when it is receivable.

D Resources expended

Resources expended are accounted for on an accruals basis and are accounted for gross.

Pension costs (see also Note 5)

The PCC contributes towards a money purchase stakeholder scheme for qualifying employees. Contributions are charged on an accruals basis.

Operating leases

Rentals payable under operating leases are charged against income on a straight-line basis over the lease term.

Grants

Grants and donations are accounted for when paid over, or when awarded where the award creates a binding obligation on the PCC.

Church Activities

The diocesan parish contribution is accounted for when paid. Any parish contribution unpaid at 31 December would be provided for in these accounts as an operational (though not a legal) liability and shown as a creditor in the balance sheet.

E Fixed Assets

Tangible fixed assets

Consecrated and beneficed property of any kind is excluded from the accounts by s.10(2)(a)&(c) of the Charities Act 2011. No value is placed on moveable church furnishings held by the churchwardens on special trust and for which a faculty is required for their disposal, since the PCC considers such to be unalienable property.

A policy of revaluation has been adopted for the church’s functional property, which is the Neighbourhood Centre. Formal valuations are obtained every five years and advice as to material movements in property values is obtained in the period between formal valuations.

Small items of equipment (normally those costing less than £500) are charged as expenditure in the year of purchase.

Depreciation

Depreciation is calculated to write down the cost of tangible fixed assets, excluding freehold properties, on a straight line basis over their expected useful lives. The rates generally applicable are:

Fixtures and fittings - Four years

Computer equipment - Three years

No depreciation is provided on freehold property as it is the PCC’s policy to maintain these assets in a continual state of sound repair. The useful economic life of these assets is so long and residual values so high that any depreciation would not be material. These assets will be subject to annual impairment reviews. Provision will be made if there has been any permanent diminution in value.

26

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

2 Incoming resources

a
Voluntary income
Planned giving
Collections at services
Sundry donations and appeals
Legacy Income (Note 10 ii)
Gift Aid recoverable
Grants (Note 10 i)
Other funds generated
b
Activities for generating funds
Neighbourhood Centre Rent (Note 11)
Fundraising events
c
Investment income
Interest receivable
Rent of Neighbourhood Centre flat
Forecourt rents
d
Income from Church Activities
Bookstall sales
Fees for weddings and funerals
e
Other incoming resources
Solar Panels - Feed in Tariff receipts
Total incoming resources		 Unrestricted
Funds
Restricted
Funds
2020 Total 2019 Total
£
£
£
£
102,772
0
102,772
113,147
4,348
0
4,348
8,997
8,848
280
9,128
13,384
0
69,000
69,000
0
23,767
0
23,767
21,490
0
7,086
7,086
52,500
0
0
0
85,224
139,735
76,366
216,101
294,742
15,000
0
15,000
76,050
130
0
130
184
15,130
0
15,130
76,234
562
0
562
987
29,458
0
29,458
29,634
22,282
0
22,282
22,353
52,302
0
52,302
52,974
0
0
0
691
458
0
458
3,879
458
0
458
4,570
8,650
0
8,650
9,489
8,650
0
8,650
9,489
216,275
76,366
292,641
438,009

27

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

3 Resources expended

3 Resources expended
a Raising Funds
Events
Garden flat letting fees & maintenance
b Church activities
St Mary's Mission partners
Home Mission (Note 11)
Diocesan Common Fund
Assistant Ministers - Salary and
Expenses
Church - Utilities
Church insurance
Church cleaning
Church maintenance
Vicarage maintenance
Upkeep of services
Parish magazine, website and publicity
Training and retreats
Parish office staff costs
Photocopier and stationery
Other parish office costs
Soul in the city
Depreciation
Church major repairs
Children’s work
Accounting services
c Governance
Independent Examination fees
Total resources expended		 Unrestricted
Funds
Restricted
Funds
2020 Total
2019 Total
£
£
£
£
218
0
218
2,271
5,620
0
5,620
5,288
5,838
0
5,838
7,559
14,860
0
14,860
17,571
395
0
395
60,800
90,000
0
90,000
90,039
5,706
6,202
11,908
39,488
6,047
0
6,047
8,481
7,982
0
7,982
7,036
4,291
0
4,291
3,903
17,993
2,700
20,693
7,819
144
16,955
17,099
0
10,310
485
10,795
12,317
1,377
0
1,377
3,349
9
0
9
3,404
14,244
0
14,244
15,564
704
0
704
1,519
4,001
0
4,001
244
0
0
0
4,617
3,035
0
3,035
3,035
0
59,600
59,600
491,773
305
436
741
709
11,208
0
11,208
12,528
192,611
86,378
278,989
784,196
2,975
0
2,975
5,640
2,975
0
2,975
5,640
201,424
86,378
287,802
797,395

28

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

4 Prior year comparatives

The detailed comparatives for each item in the Statement of Financial Activities are shown below:

Incoming resources
Voluntary income
Activities for generating funds
Income from investments
Church activities
Other incoming resources
Total Income
Resources expended
Church activities
Raising Funds
Other
Total Expenditure
Net Income/(Expenditure)
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward
5 Staff Costs
Wages and salaries
Social security costs
Pension costs
Total		 Unrestricted
Funds
Restricted
Funds
2019 Total
£
£
£
161,153
133,589
294,742
76,234
0
76,234
52,974
0
52,974
4,186
384
4,570
9,489
0
9,489		 Unrestricted
Funds
Restricted
Funds
2019 Total
£
£
£
161,153
133,589
294,742
76,234
0
76,234
52,974
0
52,974
4,186
384
4,570
9,489
0
9,489
304,036
133,973
438,009
284,098
500,098
784,196
6,556
1,003
7,559
5,640
0
5,640
296,294
501,101
797,395
7,742
(367,128)
(359,386)
(7,290)
7,290
0
452
(359,838)
(359,386)
2,610,605
462,974
3,073,579
2,611,057
103,136
2,714,193
2020
2019
£
£
24,066
46,556
0
2,849
1,760
3,387
25,826
52,792

During the year, the PCC employed 1 staff in the Parish Office (2019: 2) and 1 assistant minister (2019: 2). The average number, on the basis of full-time equivalents, was 2 (2019: 2).

29

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

The PCC provides a defined contribution stakeholder pension scheme for qualifying employees, under which it contributes 8% of the employee's basic salary. Employees may also make their own contributions. The assets of the scheme are held separately from those of the charity, in an independently administered fund.

None of the staff members earned the Act's minimum figure for declaration of £60,000. p.a.

6 Tangible fixed assets

Cost or valuation
At 1 January 2020
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book amounts
At 31 December 2019
At 31 December 2020		 Neighbourhood
Centre
Equipment
Total
£
£
£
2,410,000
77,901
2,487,901
2,410,000
77,901
2,487,901
0
(74,866)
(74,866)
0
(3,035)
(3,035)
0
(77,901)
(77,901)
2,410,000
3,035
2,413,035
2,410,000
0
2,410,000

The Neighbourhood Centre is vested in the London Diocesan Fund on behalf of the PCC. Its market value, subject to the existing tenancy, was determined as £2.41 million, to include the first floor flat, by Currell Chartered Surveyors in April 2016.

The Revaluation Reserve represents the difference between the current valuation of the Neighbourhood Centre and its original cost. As such, it is neither represented by cash nor in a form which is available for expenditure by the PCC.

30

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

7 Analysis of Net assets by fund

Fixed assets
Current assets
Debtors
Deposits and cash
Current liabilities		 Unrestricted
Funds
Restricted
Funds
2020 Total 2019 Total
£
£
£
£
2,410,000
0
2,410,000
2,413,035
9,126
0
9,126
18,845
227,511
93,124
320,635
293,678
236,637
93,124
329,761
312,523
(20,729)
0
(20,729)
(11,365)
2,625,908
93,124
2,719,032
2,714,193

8 Debtors

8 Debtors
Gift aid recoverable
Due from Mary's
Prepayments
Accrued income
Other Debtors
9 Creditors: amounts falling due within one year
Creditors
Accrued expenses		 2020
2019
£
£
1,781
4,294
4,665
1,117
556
499
0
5,000
2,124
7,935
9,126
18,845
2020
2019
£
£
15,357
6,991
5,372
4,374
20,729
11,365

31

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

10 Statement of funds

Statement of funds
Unrestricted Funds
General fund
Fabric fund (i)
Revaluation reserve
Restricted Funds		 Opening
balance
01.01.20
Income Expenditure
Transfers
Closing
balance
31.12.20
£
£
£
£
£
139,846
216,275
(189,788)
0
166,333
138,805
0
(11,636)
0
127,169
278,651
216,275
(201,424)
293,502
2,332,406
0
0
0 2,332,406
2,611,057
216,275
(201,424)
0 2,625,908
Children's Ministry 12,410
0
(436)
0
11,974
Denise Antenen Legacy (ii) 0
69,000
(6,202)
0
62,798
Discretionary fund (v) 1,298
0
0
0
1,298
Heart of Islington - General (i) 58,170
7,366
(62,785)
0
2,751
Monday Fellowship 881
0
0
0
881
Retreat Fund 1,479
0
0
0
1,479
Soul in the City 3,773
0
0
0
3,773
Vicarage Decoration Fund (iii)
Sustainable Church Project (iv)
Total Funds		 17,593
0
(16,955)
0
638
7,532
0
0
0
7,532
0
103,136
76,366
(86,378)
0
93,124
2,714,193
292,641
(287,802)
0 2,719,032

As explained in Note 1b, the PCC funds are divided between Unrestricted and Restricted Funds. Within the first of these categories is one Designated Fund, which is unrestricted and has been set aside by the PCC for refurbishment to the fabric of the church.

32

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

Notes

i The Heart of Islington fund was set up in 2016 to take receipt of generous donations from the congregation and subsequent grants towards the Heart of Islington project. The income received in 2020 represents VAT refunded under the Government’s Listed Places of Worship scheme. Expenditure from this fund in 2020 principally relates to repair of the portico which was to have been funded from the Fabric Fund. This is because the decision was taken in 2019 to use up the Heart of Islington fund first, so that money would not be left in a fund that was restricted to the project after the project had finished. During the year, the Fabric Fund was used for further refurbishment of the church interior including repairs to the Organ. No date has yet been set for the conclusion of the Heart of Islington project although it is now expected to run into 2022.

ii The executors have indicated four ‘areas favoured by Denise Antenen on an advisory basis,’ in order of priority, summarised as:

  1. Support of classical music as part of worship at St Mary’s Church.

  2. Support youth work in the form of Christian holidays away for young people.

  3. Facilities to render the Church more accessible and amenable to the elderly and infirm.

  4. Redecoration of the church vestibule.

Expenditure in 2020 was in support of classical music.

iii The PCC is responsible for keeping the Vicarage in good decorative order and with the appointment of a new vicar, the fund accumulated over the years was used for this purpose.

iv The grant awarded by Cloudesley in 2018 under their 500th anniversary Sustainable Church Buildings project has not yet been fully spent as the plan to insulate the organ loft was not practical. An alternative proposal has now been developed and, subject to Faculty consent, the plan is to implement it by June 2021.

v A fund to be used at the churchwarden’s discretion, to help people in financial crisis.

11 Mary's

On 1 January 2009, the community activities of the PCC were commissioned to a separate registered charity, called St Mary Islington Community Partnership and rebranded during 2014 as "Mary's".

The arrangements by which Mary's occupies the Neighbourhood Centre and Crypt were formalised in a lease and licence entered into in April 2013; with a rent review in April 2018, wherein, the rent increased to £75,000 per annum. However, as a result of the Coronavirus pandemic, there were some cash flow difficulties in an uncertain financial environment at Mary’s and flexibility was given to the rent payable. Mary’s paid the amount of £15,000 (2019 - £75,000) for the year. The amount in Note 2b for this year is equivalent to the net consideration of three quarters’ worth of rent receivable, less the discretionary grant if this was payable. Consequently, no grant is shown as passed for this year to Mary’s (2019 - £60,000).

Charges are made to and from the PCC and Mary's in order to reflect costs incurred by the one but partially for the benefit of the other, namely utilities and insurance.

33

The Parochial Church Council of St Mary, Islington Notes to the financial statements For the year ended 31 December 2020

12 Interests of the PCC members in transactions

No member of the PCC had a financial interest in any transaction with the church during 2020 (Nil 2019).

34