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2021-12-31-accounts

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2021

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 2021 - 31 December 2021

page 1

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2021

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 2021

Bankers

Virgin Money 11 Smithy Row Nottingham NG1 3EJ

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 2021

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 2021

The following were PCC members (trustees) from 1 January 2021 through the date (12 May 2022) on which the PCC approved the 2021 report and financial statements.

Ex-officio

Rector of parish Revd Christopher Lion (from 18 October 2021; chairman from that date) Parish churchwardens Jackie Turner (St Leonard) Roy Leary (St Leonard; until 19 February 2022) Tony Roberts (St Mary Magdalene; chairman until 18 October 2021) Andrew Fearn (St Mary Magdalene) Synods Tony Yates (deanery synod) Pam Hall (deanery synod) Elected Members Marilyn Blakeman Anne Coyne Rebekah Davison (from 17 May 2021) Sue Dutton Angela Hatter James Howlett Shekaniya Matsiko Pat Mercer Charles Olowofela (until 25 October 2021) Cheryl Turner *Stephen Turner Helen Wilkinson (from 17 May 2021 until 10 October 2021)

page 5

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2021

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.

Church buildings within the parish

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.

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.

page 6

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2021

Objectives and activities

The PCC provides an office (currently in the vestry at St Mary Magdalene). The PCC continued to employ a parish administrator (costs funded by the diocese) throughout 2021.

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 2021 as in 2020 the efforts required to maintain safe premises were considerably more demanding owing to the coronavirus pandemic. For much of the previous twelve months we have tried to encourage people to come to both churches by making use of restricted seating and limiting the number of pews or chairs in use. Congregational singing was reintroduced once regulations permitted.

After the easing of covid restrictions in the latter half of 2021 and the appointment of a new Rector (Revd Chris Lion) in October, there has been a marked and positive shift in the parish outlook. We have also acquired the services of retired Bishop Peter Hill, who will be supporting Chris in his ministry. Sadly, we had to say farewell to Owen and Gill Page who have moved back to Nottingham. They were both so helpful and dedicated during the parish vacancy and will be sorely missed.

During 2021 two lay members of the PCC sat on the deanery synod (whose purpose is to provide PCCs with an important link between parishes and the wider structures of the church).

Some ecumenical involvement has continued with Churches Together in Newark, though this was greatly reduced during the pandemic.

Achievements and performance

As well as Sunday worship services the churches have sought 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 had been severely restricted during much of 2020. In May 2021 the Community Café was able to restart on Mondays at St Mary Magdalene and has proved to be popular.

In July we reopened Coffee Bar at St Mary Magdalene with a new manager. It operated very successfully for several months, but for a variety of reasons as the year closed its continued operation was once again in some doubt.

In November we heard that a round 1 bid to the National Lottery Heritage Fund (NLHF) for muchneeded restoration work at St Mary Magdalene had been successful. Funding is therefore available to develop detailed plans for a round 2 bid in 2023 - if this bid is also successful then restoration work and associated activities can begin. At about the same time the diocese confirmed that central CoE funding is available for some re-ordering at St Mary Magdalene, together with children and youth worker appointments for the parish. It is worth noting that the focus of this work is mission, whereas the focus of the NLHF project is building restoration and heritage awareness.

In September the PCC established a Finance and Administration committee and its members have been heavily involved in the NLHF project.

page 7

Parochial Church Council of Newark St Mary Magdalene with St Leonard: Annual report and financial statements 2021

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.

Commitment to major projects

Over the next two years the PCC has committed £50,000 from its eligible funds to each of the two major projects described above. This may impact the ability of the PCC to maintain its reserves policy.

page 8

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2021

Consolidated Statement of Financial Activities for the year ended 31 December 2021

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 2021
Fund balances 31 December 2021
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
2021
£
£
£
£
213,427
213,427
10,878
10,878
35,783
35,783
11,408
11,408
-
271,496
-
271,496
13,786
13,786
254,846
254,846
821
821
-
269,453
-
269,453
-
2,043
-
2,043
-
-
2,043
-
2,043
758
(15,834)
(15,076)
-
2,801
(15,834)
(13,033)
-
428,520
413,203
841,722
-
431,321
397,368
828,689
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
841,723

page 9

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2021

Consolidated Balance Sheet as at 31 December 2021

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
2021
£
£
£
£
213,227
213,227
13,419
397,368
410,787
-
226,646
397,368
624,014
14,064
14,064
3,553
3,553
200,726
200,726
-
218,343
-
218,343
(12,902)
(12,902)
-
205,441
-
205,441
-
432,087
397,368
829,455
(767)
(767)
-
431,321
397,368
828,690
-
-
397,368
397,368
-
397,368
397,368
431,321
431,321
-
431,321
397,368
828,689
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
841,722
-
-
413,202
413,202
-
413,202
413,202
428,520
428,520
-
428,520
413,202
841,723

These financial statements were approved by the Parochial Church Council on

12 May 2022 and signed on its behalf by Revd Chris Lion (Rector and chairman)

page 10

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2021

Notes forming part of the financial statements for the year ended 31 December 2021

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 2021

Notes forming part of the financial statements for the year ended 31 December 2021 (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 2021

Notes forming part of the financial statements for the year ended 31 December 2021 (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 2021

Notes forming part of the financial statements for the year ended 31 December 2021 (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
2021
2020
£
£
207,158
189,425
6,269
5,278
213,427
194,703
10,878
1,513
-
303
10,878
1,816
35,783
18,155
-
-
35,783
18,155
8,298
10,802
3,110
2,814
11,408
13,616

page 14

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2021

Notes forming part of the financial statements for the year ended 31 December 2021 (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
2021
2020
£
£
13,741
6,543
45
34
13,786
6,577
246,455
241,973
8,391
11,104
254,846
253,077
821
5,718
-
1,235
821
6,953

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 from July 2021 a coffee bar administrator. The PCC also employed in 2021 a parish administrator. The total employment cost during 2021 (including national insurance and pension contributions) was £77,088 (2020 £80,111).

page 15

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2021

Notes forming part of the financial statements for the year ended 31 December 2021 (continued)

11 Tangible fixed assets

Freehold
land and
buildings
£
Cost
At 1 January 2021
195,000
Additions
-
Disposals
At 31 December 2021
195,000
Depreciation
At 1 January 2021
-
Charge for the year
-
At 31 December 2021
-
Net book value
At 31 December 2021
195,000
At 31 December 2020
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
-
-
7,580
7,580
660
660
- 8,240
8,240
195,000 18,227
213,227
195,000 18,887
213,887
2021
2020
£
£
410,787
425,864
4,118
43,044
9,946
6,816
14,064
49,860
4,333
2,267
6,372
3,812
2,197
5,315
12,902
11,394
767
507

page 16

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2021

Notes forming part of the financial statements for the year ended 31 December 2021 (continued)

16 Fund movements

Fund movements
Opening Gains and Closing
balance Income Expense Transfers (losses) balance
Fund name £ £ £ £ £ £
Funds specific to St Mary Magdalene
NLHF - (1,000) (1,000)
Diocesan Grant 1,667 20,109 (20,109) (1,256) 411
SDU (Reordering) - (492) (492)
Newark schools 56 56
General funds 20,839 120,167 (86,785) (9,923) 44,298
Unrestricted Endowments 44,099 (2,930) 41,169
Property owned by PCC 195,000 195,000
Property rent and management 47,957 12,182 (3,762) 56,377
Christmas Tree Festival - 11,708 (2,349) (9,358) -
Fabric 202,295 16,404 (58,432) 28,312 (12,453) 176,126
Major Repairs & Alterations 851 851
Christmas CD (57) 105 (101) (53)
Chimes/Belfry 11,561 (4,900) 6,661
Vergers and other lay staff 15,027 10,867 (23,006) (131) 2,757
Organist 13,706 30,654 (34,223) (414) 9,723
Music and Choir 49,479 10,158 (10,144) (800) 48,693
St. George's Chapel 5,991 67 325 6,383
St. George's Chapel Fowers 769 4 (12) 762
Lay Education 15,471 183 (491) 15,163
Bishop White Library 8,205 (90) 8,115
External floodlighting 173 600 (424) 349
Organ - 11,096 (7,849) 2,000 5,247
Assistant Clergy 1,176 28 (76) 1,129
Charity 436 436
Church of England Charity 6,946 160 773 7,879
Chancel Repairs 1,578 (36) 1,542
St Augustine's 60,322 (4,008) 56,314
Funeral and Wedding fees - 7,235 (7,235) -
Music for market 2,000 2,070 (1,531) (2,539) -
Flowers - 367 (209) 158
Hospitality 441 (336) 104
Magnus scholarship 19/20 - 3,496 (3,595) (98)
Magnus scholarship 20/21 98 3,667 (1,678) 2,087
Youth work 570 (2) 568
Roof Repairs 16,759 793 17,552
Sub total 723,416 262,118 (261,017) - (20,252) 704,267

page 17

PCC of Newark St Mary Magdalene with St Leonard: Annual Financial Statements 2021

Notes forming part of the financial statements for the year ended 31 December 2021 (continued)

16 Fund movements (continued)

Opening Gains and Closing
balance Income Expense Transfers (losses) balance
Fund name £ £ £ £ £ £
Funds specific to St Leonard
Welfare (Mountney) 449 (30) 419
Newton 1,855 263 2,119
Adcock 3,647 522 4,169
Fabric Fund 20,883 2,540 (1,867) 21,556
Ferrier Trust 47,407 6,782 54,189
St Leonard Newbald 35,575 (2,364) 33,211
General funds 8,490 6,839 (6,569) 8,760
118,306 9,379 (8,436) - 5,173 124,422
Total 841,722 271,496 (269,453) - (15,078) 828,689

page 18

Parochlal Church Council of Newark St Mary Magdalene wlth St Leonard: Annual Financial Statements 2021 Independent examinerfs 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 2021, which are set out on pages 9 to 18 Responslbllltles 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 requlrements of the Charities Act 20111'the Act'l. 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 giver) by the Charity Commission under section 14515llbl of the 2011 Act. Independent examinerfs ststement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination 8ivin8 me cause to believe that in any material respect: accountlng 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 IAccounts 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 acros5 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 reathed. Signed: Name.. Michelle Katie Allen FCA, CTA Chartered Account and Tax Advisor Address.. Office 11, Navigation Business Centre Mill Gate Newark Nottin8hamshire NG24 4TS Date: S May 2022 page 19