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← The Parochial Church Council Of The Ecclesiastical Parish Of St. Peter, Harold Wood

2023-12-31-accounts

Charity registration number 1131911

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs L Bowden Mr J Chan Mr T Cook Mr J Davis Mr M Harrison Mr J Harris Rev R Hudson Mr I Jeffery Mr C Knowles Dr K Ogedegbe Mrs C Okoli Mrs A Penn Mrs S King Mr J Baker Rev A Bellis Mr P Thompson Mr S Read Ms J Hooi-Narimas Mrs J Pottinger Mr J Hardy (Appointed 20 April 2023) Mrs R Grimwood (Appointed 20 April 2023) Ms A A Haastrup-Onilogbo (Appointed 20 April 2023) Charity number 1131911 Auditor Francis James & Partners LLP 1386 London Road Leigh on Sea Essex England SS9 2UJ Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent England ME19 4JQ Virgin Money Jubilee House Gosforth Newcastle upon Tyne NE3 4PL

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

LEGAL AND ADMINISTRATIVE INFORMATION

National Westminster Bank PLC PO Box 333 Silbury House 300 Silbury Boulevard Milton Keynes MK9 2ZF

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 23

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

Looking Back: A review of Church family finances during 2022.

The Budget:

The Church budget for 2023, was developed by the Business Task Group (BTG) and approved by the PCC.

The budget was prepared with a view of expected income and expenditure trends across 2023. Apart from the main (general) budget the BTG also works in partnership to establish department budgets: Salary, Technology, Fabric, Youth and Women’s Ministries.

A salary review was undertaken for 2023. The Business Task Group proposed, and PCC approved, a 6% increase to ensure nonclergy Staff were in receipt of a fair living wage. (The salary of the Associate Minister for Youth and Families is matched to stipend levels set by the Church of England.)

The Technology budget, prepared by John Harris and the Technology team, highlighted several updates that would be required to ensure all equipment, used in the Church building and during services, was fit for purpose. The team research best value for money when purchasing goods and, where possible, tend to carry out almost all tasks associated with updating, repair, and replacement at no additional cost, this is achieved thanks to several volunteers who carry out the greater majority of any labour free of charge.

The Fabric Team, under the leadership of Trevor Marlow, continue to ensure that tasks identified by the Quinquennial – Church Building Inspection (2020) are acted upon. They also carry out regular on-site inspections identifying works that require attention to keep the building safe and fit for use. When appropriate to do so the members of the Fabric task group complete repairs themselves and thus help the church to keep costs to a minimum.

The Youth Team budget is well managed and continues to meet the resource needs for all our youth groups as they continue to grow in number.

The Women’s Ministry budget mostly funds the Women’s Conference held in May and supports the work in Cameo, Women’s Prayer Breakfasts and with ‘One to Ones’.

Other expenditures remain as annual costs and include fees, licences, insurances, evangelism etc.

The PCC agreed that the 2023 budget continue to incorporate two gift days to ensure that income met our planned expenditure. The Church is still not able to set a balanced budget without including two gift days.

Considering previous income trends and the potential for expected expenditures across 2023, the PCC had to consider setting a budget showing a probable deficit of around £31,500. The PCC agreed that it would be appropriate to take some of the funds that we received as a legacy (late 2022) and use that to bolster our income and thus reduce deficit. This is not good practice and the PCC prayerfully hoped that regular giving across 2023 would significantly increase. The final deficit figure set in the budget for 2023 was £6,469.

End of the year

Income: The Lord has been gracious in His provision for the finances at St Peter’s Church, and almost all our income sources showed some (small) growth across the year. There was a very small increase in regular giving (approx.1.4%) but this should be compared with the average rate of inflation in 2023 of 4.2% which impacted on our expenditure costs. It would be a blessing to all the church family if there was a considerable increase in regular giving that matched or bettered the inflation rate, across 2024. In 2023 the diocese revised its housing allowance for the properties we owe and are used by clergy from @ £12,600pa to £24,000pa. However, we only received housing allowance for the one house that was occupied.

What has been exceptional have been the number of legacies which we received across 2023. However, a ‘living’ church cannot be dependent upon receipt of legacies.

Total Income for 2023 = £562,768. Plus £134,345 legacy income. Giving a total of £697,113.

Expenditure: Many planned expenditure areas came in close to expectation.

The exceptions were utility costs, which whilst not falling significantly across 2023, did not repeat the escalation of prices seen at the end of 2022. St Peter’s applied for and received an energy grant in 2023 which offset energy expenditure by £1710. Total Expenditure for 2023= £569,754.

A polite reminder:

If you are a taxpayer and make donations to St Peter’s Church, please complete and return a Gift Aid form. Equally, if you are no longer paying income tax then do let us know so that we do not make further Gift Aid claims on your behalf.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Acknowledgements

I would like to thank those who continue to contribute so much of their time and energies as members of all task groups as we work together enabling the gospel of Christ to be heard and to serve the church family of St Peter’s Harold Wood.

I am especially grateful to everyone who works so tirelessly on the Business Task Group, the Monday morning Finance Team and Elaine Owsley, ensuring that all the processes and procedures of managing our church finances are in place and yet never take their eyes off the goal: Serving God and our church family.

Please continue to pray for us, that He will sustain and enable us to fulfil our duties, way beyond what we can do in our own strength. Please pray that we may trust fully in Him for wisdom and knowledge.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Promoting in the ecclesiastical parish the whole mission of the Church.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

Volunteers

During the year the activities remain dependant upon the volunteer hours received. It has been calculated that this equates to approximately 75 volunteers giving on average 2 hours per week.

Achievements and performance

These are fully detailed in the annual report.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

Financial position

Income Review

Total income: £700,045. This figure is the total income for all funds and includes income from donors and other income. Inclusive of: Two Gift Days: £75,003. Whilst an encouragement it is right and correct to report that in October 2023, we were in receipt of a single gift day donation (a one off) of £17,000. Without which we would not have reached our £60,000.00 target. Legacies: £134,345.

Gift Aid Tax Refund: £94,450.

General Funds Income from: Donors: £696,155. Designated fund: £462. (There are seven funds in total.) Restricted fund: £3,428. (There are eighteen funds in total.)

Expenditure Review

Total expenditure from: General Funds: £539,484. Designated Funds: £24,142. (There are seven funds in total.) Restricted Funds: £9,059. (There are eighteen funds in funds.)

Total expenditure from all funds: (general, designated, and restricted) was £572,685.

End of Year Balance all Funds

The outcome was a surplus of £26,197. This number represents the surplus of unrestricted funds after transfer to other funds. The total surplus of all funds (general, designated, and restricted) is £127,360.

Funds carried forward: Total £472,020. General fund sum: £292,767. Designated fund sum: £155,870. Total for general and designated: £448,637. Restricted fund sum: £23,383. Fixed Assets: £100,000. Relating to the property in Harold Court Road, owned by the church family.

Reserves policy

The Church aims to hold reserves equal to approximately three months fixed overheads.

Details of financial performance are outlined in the annual report.

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Plans for future periods

The PCC gives thanks to God for His bounty and provision in 2023 and thanks the family of St Peter’s for their generous response and support of the gospel mission both financially and faithfully as we seek to serve Him in our varied and numerous roles. A plea, to continue our good works and not get complacent. We are where we are by the grace and goodness of God. Let us continue to show our dependence on Him by praying that in Christ, He might supply our every need, free us from a love of money and in the years ahead make us ever more generous and committed to gospel ministry here at St Peter’s and beyond.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

2024 Budget

The Church budget for 2024, was developed by the BTG and approved by the PCC.

In January 2024 the PCC agreed to set a budget with a projected income of £545,500. An approximated 3% decrease in our income budget from 2023. The PCC is conscious of the continuing financial situation in the wider world. However, the PCC have had to accept that the overall income/expenditure budget set for 2024 is likely to show a deficit of around £16,460, unless regular giving increases. We do appreciate the fully diverse nature of the economic status of our church family, and we are grateful to all who regularly review and increase their donations. We also acknowledge and thank those of the church family who have recently become regular donors.

2024 will see some major changes in how we structure some of our budget expenditures. The PCC agreed to significant changes relating to the annual Parish Share (voluntary) donation given to the Church of England, and use of some of the unrestricted legacy income in 2023 to support changes in staffing across 2024. As we only occupy one of our two (owned) houses for clergy we will therefore only receive the single housing allowance for the year (£24,000).

The two gift days will take place in May (5[th] ) and October (13[th] ) in 2024.

Structure, governance and management

Governing document

The Church is governed by the Parochial Church Council (Powers) Measure (1956) as amended and church representation rules.

The trustees who served during the year and up to the date of signature of the financial statements were: Mrs L Bowden

Mr J Chan Mr T Cook Mr J Davis Mr M Harrison Mr J Harris Rev R Hudson Mr I Jeffery Mr C Knowles Dr K Ogedegbe Mrs C Okoli Mrs A Penn Mrs S King Mr J Baker Rev A Bellis Mrs M Willingham (Resigned 20 April 2023) Mr P Thompson Mr S Read Ms J Hooi-Narimas Mrs J Pottinger Mr J Hardy (Appointed 20 April 2023) Mrs R Grimwood (Appointed 20 April 2023) Ms A A Haastrup-Onilogbo (Appointed 20 April 2023)

Recruitment and appointment of new trustees

Trustees are elected by members of the church electoral roll at the annual general meeting.

Organisational structure Members of the PCC are either ex officio or elected by the annual Parochial Church meeting in accordance with the church representation rules.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Organisational structure

Members of the PCC are either ex officio or elected by the annual Parochial Church meeting in accordance with the church representation rules. During the year the following served as members of the PCC: Incumbent: Rev R Hudson Wardens: Mr M Harrison Mr J Chan Treasurer: Ms A Penn Associate Ministers: Rev A Bellis Mr J Baker PCC Secretary: Mrs J Pottinger

Business Task Group

The Business Task Group (BTG) consists of eleven members and reports directly to the PCC. It has responsibility for ensuring the smooth running of the business and finance areas of church life. The BTG advise but it is the PCC’s responsibility to make decisions.

The Treasurer chairs this group during meetings, which occur bimonthly (February, April, June, August, October and December.)

The trustees' report was approved by the Board of Trustees.

Mr M Harrison

Trustee

10 April 2024

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

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

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

Opinion

We have audited the financial statements of The Parochial Church Council Of The Ecclesiastical Parish of St Peter Harold Wood (the ‘Charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The nature of the industry and sector, control environment and business performance including the design of the Church's policies, key drivers for trustees remuneration;

the matters discussed among the audit engagement team including significant component audit teams and involving relevant internal specialists,regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Church operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context is the Charities Act, 2011.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Church's ability to operate or to avoid a material penalty. These included compliance with the methodist church rules and regulations.

Our procedures to respond to risks identified included the following:

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of operations.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) 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.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Julian Francis FCA (Senior Statutory Auditor) for and on behalf of Francis James & Partners LLP 10 April 2024 Chartered Accountants Statutory Auditor 1386 London Road Leigh on Sea Essex England SS9 2UJ

Francis James & Partners LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and legacies
3
680,155
3,428
Other trading activities
4
3,081
-
Investments
5
5,088
-
Other income
6
8,293
-
Total income
696,617
3,428
Charitable activities
7
563,626
9,059
Net income/(expenditure)
132,991
(5,631)
Transfers between funds
(18,520)
18,520
Net movement in funds
114,471
12,889
Reconciliation of funds:
Fund balances at 1 January 2023
334,166
10,494
Fund balances at 31 December
2023
448,637
23,383		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
683,583
622,907
7,056
3,081
2,274
-
5,088
834
-
8,293
4,197
-
700,045
630,212
7,056
572,685
559,667
16,167
127,360
70,545
(9,111)
-
-
-
127,360
70,545
(9,111)
344,660
263,621
19,605
472,020
334,166
10,494		 Total
2022
£
629,963
2,274
834
4,197
637,268
575,834
61,434
-
61,434
283,226
344,660

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
11
Current assets
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
The funds of the Charity
Restricted income funds
17
Unrestricted funds		 2023
£
3,956
34,225
373,938
412,119
40,099		 £
100,000
372,020
472,020
23,383
448,637
472,020		 2022
£
3,587
16,846
272,711
293,144
48,484		 £
100,000
244,660
344,660
10,494
334,166
344,660

The financial statements were approved by the trustees on 10 April 2024

Mr M Harrison Mrs A Penn Trustee Trustee

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash generated from operations
22
Investing activities
Investment income received
Net cash generated from investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
5,088		 £
96,139
5,088
-
101,227
272,711
373,938		 2022
£
834		 £
40,671
834
-
41,505
148,676
272,711

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

The Parochial Church Council Of The Ecclesiastical Parish of St Peter Harold Wood is a charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under 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.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings

not provided

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.10 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Covenants & free will
offering
364,206
-
Gift aid
94,450
-
Collections and other
donations
87,154
-
Donations, appeals etc
134,345
3,428
680,155
3,428
4
Other trading activities
Sales of advertising, books etc
5
Income from investments
Interest receivable
6
Other income
Grants, fees etc.		 Total
Unrestricted
Restricted
Total
funds
funds
2023
2022
2022
2022
£
£
£
£
364,206
358,840
-
358,840
94,450
94,601
-
94,601
87,154
96,966
-
96,966
137,773
72,500
7,056
79,556
683,583
622,907
7,056
629,963
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
3,081
2,274
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
5,088
834
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
8,293
4,197		 Total
2022
£
358,840
94,601
96,966
79,556
629,963

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Charitable activities

Charitable Charitable
Expenditure Expenditure
2023 2022
£ £
Staff wages, expenses and running costs 256,964 255,572
Building maintenance 23,977 30,502
Other funds 9,202 22,004
Church activities 31,512 20,053
Parish share 179,161 163,407
Church magazine advertising 372 456
Donations given 56,498 70,040
Photcopier rental 7,600 7,137
Postage & stationery 1,626 1,373
Audit fees 5,400 4,800
Bank charges 373 490
572,685 575,834
572,685 575,834
Analysis by fund
Unrestricted funds 563,626 559,667
Restricted funds 9,059 16,167
572,685 575,834

8 Trustees

During the year salaries of £32,159 ( 2022 : £ 27,165) were paid to trustees.

Trustees' expenses

Trustees expenses of £ nil ( 2022: £nil ) were reimbursed during the year.

9 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
8 7

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2023
2022
£
£
141,652
132,222
6,701
5,895
12,394
11,305
160,747
149,422		 (Continued)
2023
2022
£
£
141,652
132,222
6,701
5,895
12,394
11,305
160,747
149,422
149,422

9 Employees

There were no employees whose annual remuneration was more than £60,000.

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11 Tangible fixed assets

Tangible fixed assets
Freehold land
and buildings
£
Cost
At 1 January 2023 100,000
At 31 December 2023 100,000
Carrying amount
At 31 December 2023 100,000
At 31 December 2022 100,000

No depreciation is provided in respect of the Freehold Property as in the opinion of the trustees the property is regularly maintained to high standard and is unlikely to fall in value.

Other fixed assets are expensed as they are incurred, in accordance with the guidance given in the church accounting regulations

12 Stocks

2023 2022
£ £
Finished goods and goods for resale 3,956 3,587

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13 Debtors

Debtors
2023 2022
Amounts falling due within one year: £ £
Other debtors 34,225 16,846
Movement in funds
At Net Transfers At
January Movement between December
2023 in funds funds 2023
£ £ £ £
Unrestricted Funds
General Fund 266,570 156,671 (130,474) 292,767
Long Term Maintenance Fund – Buildings 43,049 (10,350) 8,000 40,699
Ministry Training Fund 13,477 (3,858) - 9,619
Plant Fund 10,000 - - 10,000
Explorers 1,070 (474) - 596
Technology - - 2,000 2,000
Church Partnership Fund - (1,886) 4,454 2,568
Youth Worker Fund - (7,112) 97,500 90,388
334,166 132,991 (18,520) 448,637
Restricted Funds
ABC 621 (101) 49 569
Christmas Day Lunch Fund 852 - - 852
Coneys 960 (520) - 440
Dads & Toddlers 140 - - 140
Elderly - (3,631) 18,676 15,045
Explorers 282 110 - 392
Horticulture 50 (50) - -
Keswick at Home 781 - - 781
Long Term Maintenance Fund – Equipment 916 - - 916
Men’s Group 709 178 - 887
Mercy Fund 2,749 (1,400) 175 1,524
Thursday Fellowship 486 423 (420) 489
Tuesday @ Two 314 - - 314
Watchnight Service 414 - - 414
Word Alive 620 - - 620
Youth Activities Bursary 600 (640) 40 -
10,494 (5,631) 18,520 23,383
Total Funds 344,660 127,360 - 472,020

14 Movement in funds

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

15 Movement in funds

Movement in funds
Incoming Resources Movement in
resources expensed funds
£ £ £
Unrestricted Funds
General Fund 696,155 (539,484) 156,671
Explorers 462 (936) (474)
Long Term Maintenance Fund – Buildings - (10,350) (10,350)
Ministry Training Fund - (3,858) (3,858)
Church Partnership Fund - (1,886) (1,886)
Youth Worker Fund - (7,112) (7,112)
696,617 (563,626) 132,991
Restricted Funds
ABC 68 (169) (101)
Coneys 840 (1,360) (520)
Elderly 64 (3,695) (3,631)
Explorers 110 - 110
Horticulture - (50) (50)
Men’s Group 1,523 (1,345) 178
Mercy Fund 100 (1,500) (1,400)
Thursday Fellowship 423 - 423
Watchnight Service - - -
Youth Activities Bursary 300 (940) (640)
3,428 (9,059) (5,631)
Total Funds 700,045 (572,685) 127,360

Within unrestricted funds are the following designated funds:

Long Term Maintenance Fund – Buildings
Ministry Training Fund
Plant Fund
Explorers
Technology
Church Partnership Fund
Youth Worker Fund		 £
40,699
9,619
10,000
596
2,000
2,568
90,388
155,870

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023 2022
£ £
Accruals and deferred income 40,099 48,484

17 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 January Incoming Resources TransfersAt 31 December
2023 resources expended 2023
£ £ £ £ £
10,494 3,428 (9,059) 18,520 23,383
Previous year: At 1 January Incoming Resources TransfersAt 31 December
2022 resources expended 2022
£ £ £ £ £
19,605 7,056 (16,167) - 10,494

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January Incoming Resources TransfersAt 31 December TransfersAt 31 December
2023 resources expended 2023
£ £ £ £ £
General funds 334,166 696,617 (563,626) (18,520) 448,637
Previous year: At 1 January Incoming Resources TransfersAt 31 December
2022 resources expended 2022
£ £ £ £ £
General funds 263,621 630,212 (559,667) - 334,166

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PETER HAROLD WOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

19 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
December 2023 are
represented by:
Tangible assets
100,000
-
Current assets/(liabilities)
348,637
23,383
448,637
23,383		 Total
Unrestricted
funds
Restricted
funds
2023
2022
2022
£
£
£
100,000
100,000
-
372,020
234,166
10,494
472,020
334,166
10,494		 Total
2022
£
100,000
244,660
344,660

20 Related party transactions

The church is associated with the New Ingrebourne Trust (Registered Charity No. 1042768) by means of mutual trustee being L Morris.

During the year, there was rent payable to the Trust of £12,000. At the year end the balance due to /from the trust was nil. ( 2022: nil due from the trust).

21 Analysis of changes in net funds

The Charity had no material debt during the year.

22
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
(Increase)/decrease in stocks
(Increase)/decrease in debtors
(Decrease) in creditors
Cash generated from operations		 2023
£
127,360
(5,088)
(369)
(17,379)
(8,385)
96,139		 2022
£
61,434
(834)
2,987
25,777
(48,693)
40,671