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2020-12-31-accounts

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NEWARK ON TRENT ST MARY MAGDALENE WITH ST LEONARD

Registered Charity number 1131972

ANNUAL REPORT and FINANCIAL STATEMENTS

for the financial year 1 January 2020 - 31 December 2020

page 1

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

Contents
pages 3 - 5 Legal and administrative information
pages 6 - 8 Report of the trustees
page 9 Consolidated statement of financial activities
page 10 Consolidated balance sheet
pages 11 - 18 Notes forming part of the financial statements
page 19 Report of the independent examiner

page 2

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

Bankers

Yorkshire Bank plc 10 High Street Grantham NG31 6PU

CAF Bank Ltd 25 Kings Hill Avenue West Malling Kent ME19 4JQ

NatWest plc 1 Market Place Newark NG24 1DY

CCLA Investment Management Ltd The CBF Church of England Funds Senator House 85 Queen Victoria Street London EC4V 4ET

Independent Examiner

Michelle Allen FCA, CTA Access Accounts Services Ltd Office 11 Navigation Business Centre Mill Gate Newark NG24 4TS

page 3

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

Administrative Information

The parish consists of two churches: Newark St Leonard and Newark St Mary Magdalene, situated in the Deanery of Newark and Southwell, the Archdeaconry of Newark, and the Diocese of Southwell and Nottingham.

The Parochial Church Council (PCC) is a registered charity (1131972) and its members are the charity's trustees. The members are listed on the next page.

The working name as registered with the Charity Commission has for historical reasons and convenience remained as Newark Team PCC. The PCC's name as an employer registered with HMRC is Newark Team Ministry PCC.

The address for correspondence is:

St Mary Magdalene Church Church Walk Newark NG24 1JS email: office@stmnewark.org

page 4

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

The following were PCC members (trustees) from 1 January 2020 through the date (13 May 2021) on which the PCC approved the 2020 report and financial statements. Note that the Annual Parochial Church Meeting for 2020 was exceptionally held on 21 October 2020 owing to the coronavirus pandemic.

Ex-officio

Priest in Charge of parish Revd David Pickersgill (until 31 October 2020; chairman until that date)
Curate Revd Christopher Lee (until 30 March 2020)
Parish churchwardens *Jackie Turner
*Roy Leary
*Tony Roberts (chairman from 1 November 2020)
*Andrew Fearn
Synods Vaughan Wright (deanery synod) until 30 November 2020
Pat Mercer (deanery synod) until 30 November 2020
*Pam Hall (deanery synod) from 1 December 2020
Elected Members Elaine Black (until 21 October 2020)
*Marilyn Blakeman
*Anne Coyne (from 21 October 2020)
June Doubleday (until 7 October 2020)
Steve Doubleday (until 8 October 2020)
*Sue Dutton
Pam Hall (until 30 November 2020)
*Angela Hatter
*James Howlett
*Shekaniya Matsiko (from 21 October 2020)
Rita McCall (until 21 October 2020)
*Pat Mercer (from 21 October 2020)
*Charles Olowofela (from 21 October 2020)
*Cheryl Turner
*Stephen Turner (until 9 July 2020 and from 21 October 2020)
*Tony Yates

page 5

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

Structure, governance and management

The parish of Newark on Trent with St Mary Magdalene with St Leonard evolved by means of four pastoral schemes made between 1980 and 2017. The Parochial Church Council (PCC) is a registered charity and is the body with legal responsibility for the church activities within the parish.

The two churches in the parish each have two churchwardens as required by statute. While all four wardens are legally wardens of the whole parish they exercise their functions primarily at the church from whose congregation they were appointed.

Parishioners give to the churches separately for mission and ministry and maintenance and this income therefore creates a set of restricted funds within the PCC's accounts (in that the PCC is generally constrained to apply it for uses specific to the church to which it is given).

Aim and purposes

The PCC is responsible for co-operating with the Clergy in promoting in the ecclesiastical parish the whole mission of the Church, spiritual, pastoral, evangelistic, social and ecumenical.

Objectives and activities

The two parish churches are set in different and distinct geographical and social environments. The building at Newark St Mary Magdalene is old and traditional and provides a venue for civic services. The building used by Newark St Leonard is part of the Bridge Community Centre which is owned by the local authority and run by a management committee on which the St Leonard congregation has substantial representation.

As well as Sunday worship services the churches seek to provide a number of activities that reach out in one way or another to the wider communities. Owing to the coronavirus pandemic these activities were severely restricted during much of 2020.

The PCC provides an office (currently in the vestry at St Mary Magdalene). The PCC employed a parish administrator (costs funded by the diocese) throughout 2020.

Churchwardens and clergy and others appointed by the PCC continue to monitor health and safety of premises and the safeguarding of children and vulnerable adults among the church congregations and where appropriate among visitors to church premises. During 2020 the efforts required to maintain safe premises were considerably more demanding as a consequence of the coronavirus pandemic.

During most of the period covered by this report two lay members of the PCC (in addition to the clergy) sat on the deanery synod (whose purpose is to provide PCCs with an important link between parishes and the wider structures of the church).

There is also some ecumenical involvement with Churches Together in Newark, though this has been greatly reduced during the pandemic.

page 6

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

Achievements and performance

It is perhaps stating the obvious that owing to the coronavirus pandemic many of the achievements and much of the progress described in the last year’s report have not been much developed during 2020. And in fact activity in both church buildings was significantly curtailed, and Sunday services for much of 2020 took place on-line.

As an employer the PCC took advantage of the Government’s job retention (furlough) scheme. Sadly at the start of the second period of lockdown it was decided that the coffee bar would not be viable for the foreseeable future and so the coffee bar supervisor's position became redundant.

In line with government guidance, it proved possible at St Mary Magdalene after the first period of lockdown to keep the building open for limited periods during the week for private prayer. A team of very committed and dedicated stewards was recruited to facilitate this. It was also possible to restore two Sunday morning services at St Mary Magdalene and for part of the second half of 2020 a Sunday morning service at St Leonard.

At the end of March 2020 the parish curate left to become Vicar of Mansfield. And at the end of October 2020 the Priest in Charge of the parish left to pursue further study.

The future development of the parish and the appointment of new clergy are actively being discussed with the diocese in the context of the diocesan strategy.

Church buildings within the parish

The PCC is ultimately responsible for managing the fabric of its buildings (this includes a limited responsibility for the for the internal fabric of the Bridge Community Centre). Members of both churches are actively engaged in reviewing and implementing repairs and restorations.

The St Mary Magdalene building requires significant attention to deteriorating fabric, and a project was started during 2020 to address this. With the support of a professional consultant and the church architect a detailed funding application was made to the National Lottery Heritage Fund. Unfortunately progress was delayed by the Fund's response to the coronavirus pandemic, but by the end of 2020 it was hoped that the application process could resume early in 2021.

page 7

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2020

Investment policy

The short-term investment policy of the PCC is to invest restricted and unrestricted reserves in the CBF Church of England Deposit Fund. Endowment funds are held in the name of the Southwell & Nottingham Diocesan Board of Finance as custodial trustee. Endowment funds are invested primarily (but not exclusively) in the CBF Fixed Interest Securities Fund. This fund aims to maximise the income whilst maintaining the value of the investment. The fund managers’ investment policy meets the ethical standards of the Church of England.

Reserves policy

In respect of St Leonard there is no specific policy as unavoidable expenditure is low.

Given its age and size and listed status the PCC believes it prudent to try to maintain in respect of St Mary Magdalene a cash balance on reserves of £50,000 to cover contingencies.

In respect of the two residential properties owned by the PCC about £40,000 is nominally reserved in general funds to cover planned and emergency maintenance.

page 8

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Consolidated Statement of Financial Activities for the year ended 31 December 2020

Notes
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5
Total incoming resources
Expenditure on:
Raising funds
6
Charitable activities
7
Other
8
Total resources expended
Net incoming resources/(resources expended) before transfers
Transfers between funds
Net incoming resources/(resources expended)
Realised and unrealised gains / (losses) on investment assets
Net movement in funds
Fund balances 1 January 2020
Fund balances 31 December 2020
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
2020
£
£
£
£
194,703
194,703
1,816
1,816
18,155
18,155
13,616
13,616
-
228,290
-
228,290
6,577
6,577
253,077
253,077
6,953
6,953
-
266,607
-
266,607
-
(38,317)
-
(38,317)
-
-
(38,317)
-
(38,317)
361
15,731
16,092
-
(37,956)
15,731
(22,225)
-
466,476
397,472
863,948
-
428,520
413,203
841,722
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
2019
£
£
£
£
-
186,224
186,224
9,806
9,806
37,725
37,725
-
16,777
16,777
-
250,532
-
250,532
41,965
41,965
236,974
236,974
-
2,992
2,992
-
281,931
-
281,931
-
(31,399)
-
(31,399)
-
-
(31,399)
-
(31,399)
817
15,704
16,521
-
(30,582)
15,704
(14,878)
-
497,058
381,768
878,826
-
466,476
397,472
863,948

page 9

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Consolidated Balance Sheet as at 31 December 2020

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Other current assets
Cash at bank and in hand
Creditors: amounts
falling due within
one year
14
Net current assets
Total assets less
current liabilities
Creditors: amounts
falling due after more
than one year
Net assets
Funds:
Unrestricted funds
General funds
Endowment funds
Restricted income funds
Total funds
Unrestricted Restricted Endowment
Total
Funds
Funds
Funds
2020
£
£
£
£
213,887
213,887
12,662
413,202
425,864
-
226,549
413,202
639,751
49,860
49,860
3,654
3,654
160,357
160,357
-
213,871
-
213,871
(11,394)
(11,394)
-
202,477
-
202,477
-
429,027
413,202
842,229
(507)
(507)
-
428,520
413,202
841,723
-
-
413,202
413,202
-
413,202
413,202
428,520
428,520
-
428,520
413,202
841,723
Unrestricted Restricted Endowment
Total
Funds
Funds
Funds
2019
£
£
£
£
214,547
214,547
12,297
397,471
409,768
-
226,844
397,471
624,315
13,095
13,095
4,752
4,752
232,616
232,616
-
250,463
-
250,463
(10,831)
(10,831)
-
239,632
-
239,632
-
466,476
397,471
863,947
-
-
466,476
397,471
863,947
-
-
397,471
397,471
-
397,471
397,471
466,476
466,476
-
466,476
397,471
863,947

These financial statements were approved by the Parochial Church Council on

13 May 2021

and signed on its behalf by

Tony Roberts (Churchwarden and Chairman)

page 10

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020

1 Accounting policies

a Basis of preparation

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the Charities Statement of Recommended Practice (SORP) (FRS102) effective January 2015.

They have been prepared under the historical cost convention, except for the valuation of investment assets, which are included at market value.

Subject to any exceptions noted below, the financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the financial statements of church groups that owe their main affiliation to another body (e.g. Mothers Union), nor those that are informal gatherings of church members.

b Fund accounting

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

Restricted funds represent (a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms or bequest or (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 each year must be carried forward as a balance on that fund. The PCC does not usually invest separately for each fund. Where there is no separate investment, interest is apportioned to individual funds on an average balance basis.

Endowment funds are funds where the capital must be retained; only income arising from investment of the endowment may be used either as restricted or unrestricted funds depending upon the purpose for which the endowment was established.

page 11

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

1 Accounting policies continued

c Incoming resources

All incoming resources are accounted for gross

Voluntary income and capital sources

Collections are recognised when received by or on behalf of the PCC. Planned giving receivable, whether under Gift Aid scheme or not, is recognised when it is received.

Tax recovered on Gift Aid donations is recognised in the same accounting year as the donation is recognised. Grants and legacies to the PCC are accounted for as soon as

the PCC is notified of its legal entitlement; the amount due is quantifiable; and its ultimate receipt by the PCC is reasonably certain. Funds raised by fetes, garden parties and similar events are accounted for gross.

Sales of books and magazines from a church bookstall are accounted for gross.

Other income

Rental income is recognised when the rental is due.

Income from investments

Dividends are accounted for when due and payable, and interest entitlements are accounted for as they accrue.

Tax recoverable on such income is recognised in the same accounting year.

Gains and losses on investments

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

page 12

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

1 Accounting policies continued

d Resources used

Grants

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

Activities directly relating to the work of the Church

The diocesan parish share is accounted for when due. Any parish share unpaid at 31 December is provided for In these financial statements as an operational (though not a legal) liability and is shown as a creditor in the balance sheet.

e Tangible fixed assets

Consecrated property and moveable church furnishings

Consecrated and beneficed property of any kind is excluded from the financial statements by the Charities Act 2011 s.10 (2)(a)

Moveable church furnishings held by the rector and churchwardens on special trust for the PCC and which require a faculty for disposal are accounted for as inalienable property unless consecrated. They are listed in the church inventory, which can be inspected at any reasonable time upon application to the churchwardens. For inalienable property acquired before 1 January 2006 there is insufficient cost information readily available and therefore such assets are not valued in the financial statements.

Inalienable property acquired since 1 January 2006 is capitalised and depreciated in the financial statements over its current anticipated useful economic life (usually 25 years) on a straight-line basis. All expenditure incurred in the year on consecrated or beneficed buildings, individual items under £2,000 or on the repair of movable church fittings acquired before 1 January 2006 is written off.

Other fixtures, fittings and office equipment

Equipment used within the church premises is depreciated on a straight-line basis over four years.

Individual items with a purchase price of £2,000 or less are written off when the asset is acquired.

f Investments

Investments are stated at market value at the balance sheet date.

page 13

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

1 Accounting policies continued

g Current assets

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

Short term deposits include cash held on deposit either with the Central Board of Finance Church of England Funds or at the bank.

2 Income from donations and legacies
Restricted:
St Mary Magdalene
St Leonard
3 Income from charitable activities
Restricted:
St Mary Magdalene
St Leonard
4 Income from other trading activities
Restricted:
St Mary Magdelene
St Leonard
5 Income from investments
Restricted:
St Mary Magdalene
St Leonard
2020
2019
£
£
189,425
179,384
5,278
6,840
194,703
186,224
1,513
6,756
303
3,050
1,816
9,806
18,155
37,725
-
-
18,155
37,725
10,802
13,725
2,814
3,052
13,616
16,777

page 14

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

6 Expenditure on raising funds
Restricted:
St Mary Magdalene
St Leonard
7 Charitable activities (expenditure)
Restricted:
St Mary Magdalene
St Leonard
8 Other expenditure
Restricted:
St Mary Magdalene
St Leonard
2020
2019
£
£
6,543
41,882
34
83
6,577
41,965
241,973
225,128
11,104
11,846
253,077
236,974
5,718
464
1,235
2,528
6,953
2,992

9 Trustees' remuneration

No trustee either received or waived any emoluments during the year or during the preceding year.

10 Employment costs

The PCC employed at St Mary Magdalene in 2020 a director of music, an assistant organist, a head verger, and until October 2020 a coffee bar administrator. The PCC also employed in 2020 a parish administrator. The total employment cost during 2020 (including national insurance and pension contributions) was £80,111 (2019 £81,236).

page 15

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

11 Tangible fixed assets

Freehold
land and
buildings
£
Cost
At 1 January 2020
195,000
Additions
-
Disposals
At 31 December 2020
195,000
Depreciation
At 1 January 2020
-
Charge for the year
-
At 31 December 2020
-
Net book value
At 31 December 2020
195,000
At 31 December 2019
195,000
12 Fixed asset investments
Market value 31 December
13 Debtors
Prepayments and accrued income
Tax recoverable and fees
14 Creditors: amounts falling due within one year
Accruals and deferred income
Trade creditors
Other creditors including tax and NI
15 Creditors: amounts falling due after
more than one year
Provision for liabilities and charges
Freehold
land and
buildings
£
195,000
-
Office
Total
equipment
£
£
26,467
221,467
-
-
-
-
195,000 26,467
221,467
-
-
6,920
6,920
660
660
- 7,580
7,580
195,000 18,887
213,887
195,000 19,547
214,547
2020
2019
£
£
425,864
409,768
43,044
3,914
6,816
9,181
49,860
13,095
2,267
2,442
3,812
6,832
5,315
1,557
11,394
10,831
507
-

page 16

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

**16 ** Fund movements
Opening Gains and Closing
balance Income Expense Transfers (losses) balance
Fund name £ £ £ £ £ £
Funds specific to St Mary Magdalene
Choir Exgratia 1,098 - (1,098) -
Diocesan Grant 411 27,568 (26,312) 1,667
Newark schools 356 - (300) 56
World War 1 Project 171 - (171) -
General funds 43,988 90,379 (81,377) (32,150) 20,839
Unrestricted Endowments 42,596 1,503 44,099
Property owned by PCC 195,000 195,000
Property rent and management 39,104 11,640 (2,787) 47,957
Christmas Tree Festival 27,110 461 - (27,571) -
Fabric 194,462 21,286 (61,727) 41,889 6,387 202,295
Major Repairs & Alterations 847 4 - - 851
Christmas CD 364 694 (1,115) (57)
Chimes and Belfry 12,641 - (1,080) 11,561
Vergers and other lay staff 2,208 13,799 (23,263) 22,217 67 15,027
Organist 17,165 30,691 (34,363) 212 13,706
Music and Choir 46,828 13,831 (8,749) (2,841) 410 49,479
St. George's Chapel 5,780 65 - 146 5,991
St. George's Chapel Flowers 758 5 - 6 769
Lay Education 14,993 226 - 252 15,471
Bishop White Library 8,205 - - 8,205
External floodlighting - 763 (589) 173
Organ 1,235 2,445 (6,323) 2,643 -
Assistant Clergy 1,103 35 - 39 1,176
Charity 436 436
Church of England Charity 6,462 157 - 327 6,946
Chancel Repairs 1,515 64 1,578
St Augustine's 58,266 2,056 60,322
Funeral and Wedding fees 3,885 603 - (4,488) -
Music for market 48 1,952 - 2,000
Hospitality 422 19 - 441
Magnus scholarship 18/19 1,108 - (1,108) -
Magnus scholarship 19/20 - 2,142 (2,443) 301 -
Magnus scholarship 20/21 1,133 (1,035) 98
Youth work 815 - (245) 570
Roof Repairs 16,907 - (148) 16,759
Sub total 746,287 219,896 (254,235) 0 11,468 723,415

page 17

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

16 Fund movements (continued)
Opening Gains and Closing
balance Income Expense Transfers (losses) balance
Fund name £ £ £ £ £ £
Funds specific to St Leonard
Welfare (Mountney) 434 15 449
Newton 1,744 112 1,855
Adcock 3,412 235 3,647
Fabric Fund 19,386 2,801 (1,304) 20,883
Ferrier Trust 44,357 3,050 47,407
St Leonard Newbald 34,362 1,212 35,575
General funds 13,966 5,231 (11,069) 361 8,490
117,661 8,394 (12,373) - 4,624 118,306
Total 863,948 228,290 (266,608) 0 16,092 841,721

page 18

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2020

Independent examiner’s report to the Trustees of the Parochial Church Council

I report to the trustees on my examination of the accounts of the Parochial Church Council for the year ended 31 December 2020, which are set out on pages 9 to 18

Responsibilities and basis of the report

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

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

Independent examiner’s statement

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

  1. accounting records were not kept in respect of the Trust as required by section 130 of the 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.

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

Signed: Name: Michelle Katie Allen FCA, CTA Chartered Account and Tax Advisor Address: Office 11, Navigation Business Centre Mill Gate Newark Nottinghamshire NG24 4TS Date: 6 May 2021

page 19