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2020-12-31-accounts

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WHICKHAM

(St. Mary the Virgin, Whickham) Registered Charity Number 1132270

Annual Report

Including Financial Statements Year ended 31[st] December 2020

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The Parochial Church Council (PCC) presents its annual report for the year ended 31st December 2020, which includes the financial statements for that year.

Copies of this report/financial statements are submitted to both the Durham Diocese and the Charity Commission in order to meet regulatory requirements.

REFERENCE AND ADMINISTRATIVE INFORMATION

St Mary the Virgin Church is situated in Whickham town centre. We are an Anglican Parish Church in the Gateshead West Deanery of the Diocese of Durham.

Our correspondence address is:

The Parish Office St Mary’s Centre Church Chare Whickham Newcastle upon Tyne NE16 4SH

On 22 October 2009 St Mary’s was entered in the Central Register of Charities under Charity Registration Number 1132270. Prior to this date the Church was a charity excepted by statutory instrument from registration with the Charity Commission.

Main Bankers:

Barclays Bank PLC

Leicester

LE87 2BB

STRUCTURE, GOVERNANCE AND MANAGEMENT

The method of appointment of PCC members is set out in the Church Representation Rules. At St Mary’s the membership of the PCC consists of the incumbent (The Rector), two churchwardens, diocesan synod members, deanery synod members and members elected by those members of the congregation who are on the electoral roll of the church. All those who attend our services and members of the congregation are encouraged to register on the Electoral Roll and stand for election to the PCC.

The PCC members are responsible for making decisions on all matters of general concern and importance to the parish, including deciding on how the funds of the PCC are to be spent.

Given its wide responsibilities the PCC has a number of committees, each of which dealing with a particular aspect of parish life. These committees, which include Finance, Buildings, Church Life and Pastoral Care, Centre Management, and Events, are all responsible to the PCC and report back to it regularly when their recommendations are discussed and agreed upon as appropriate.

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Membership of the PCC during 2020 :

Ex Officio members : Incumbent: The Reverend Barry J Abbott (Chairman) Wardens: Anne Robertson Joan Porteous Diocesan Synod: Susan Lister Deanery Synod: Jill Abbott Brian Gregory Joan Smith Sue Gornall (PCC Secretary) Elected members: Dorothy Clasper Carole Dixon William Heslop (Centre Mgt. Chair) Pat Heslop [Term ended 17[th] October 2020] Diana Wright Ian Newton (Treasurer) Morris Newton [Resigned 5[th] February 2020] Kathy Thomson Katherine Walton Margaret Wood

AIMS AND PURPOSES

St Mary’s Parochial Church Council [PCC] has a responsibility of co-operating with the incumbent, the Reverend Barry Joseph Abbott, in promoting within the ecclesiastical parish the whole mission of the Church, encompassing pastoral, evangelistic, social and ecumenical practice.

OBJECTIVES

The PCC is committed to serving all in the community and enabling as many people as possible to worship at our church and to become part of our parish community at St Mary’s. The PCC maintains an overview of worship throughout the parish and makes suggestions on how services can involve the many groups that live within our parish. Our services and worship put faith into practice through prayer and scripture, music and sacrament.

To facilitate this work it is important that we maintain the fabric or the church of St Mary the Virgin and the St Mary’s Centre buildings.

PUBLIC BENEFIT

When planning our activities for the year, the incumbent and the PCC have considered the Charity Commission guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion;

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RISK MANAGEMENT

The PCC recognises its responsibility for identifying and managing risk.

FINANCIAL -As with many charitable organisations, the majority of the PCC’s income is the result of voluntary giving, the vast majority of this coming from the generous and committed giving of St Mary’s congregation. It is recognised that church membership and the associated giving fluctuates year by year, and the PCC monitors main areas of income and expenditure through monthly budget reports to the Finance Committee and regular updates by the Treasurer at each formal PCC meeting. The current pandemic has significantly impacted on income levels since March and where necessary expenditure has been reduced accordingly and available government grants claimed. Monthly cash flow reports have been provided to the Standing Committee acting on behalf of the PCC since April 2020.

The handling of cash is normally subject to dual control procedures where practicable with the objective of minimising potential loss or fraud. However due to the impact of the coronavirus pandemic with its significant reduction in actual income received, the closure of the parish office, and the need for social distancing normal counting and banking arrangements have been temporarily suspended and alternative arrangements have been put in place. The PCC’s bank accounts require that two authorised signatories sign each cheque and authorise any standing orders, direct debit mandates, or on-line electronic payments. Bank debit/credit cards are used as authorised by the PCC.

The PCC’s financial transactions are recorded on a specialised church accounting software system which includes full audit trail.

RESERVES POLICY – See Note 12 to the Financial Statements for details.

MAINTENANCE – Essential maintenance and repair work to the church and PCC property has been carried out throughout the year. All annual inspections in respect of safety, electrical and security requirements have been undertaken as required. Appropriate steps were taken to ensure that when the church was open it met COVID secure requirements regarding cleaning and social distancing.

SAFEGUARDING –The health, safety and protection of children and young people is regarded as being of paramount importance. Formal policy and procedures are in operation within the parish in line with Diocesan guidelines.

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INSURANCE the PCC maintains comprehensive insurance cover in respect of the Church and St Mary’s Centre and associated activities. The relevant certificates and safety notices are displayed as required.

CHAIRMAN’S ANNUAL REPORT

Over this past year we’ve experienced unprecedented challenges through lockdown and restriction. None of us has remained untouched by the effects of the Pandemic. Yet in all of this I find myself feeling thankful of the work and understanding shown by our members, the PCC and Standing Committee and which leaves me hopeful for our future.

When we were confronted with enforced closure we adapted. Risk assessments were drawn up and put in place and followed up with regular reviews to ensure safety. We went on-line, developing prerecorded worship allowing members and ministers to continue to take part in services through the use of audio files and pre-recorded hymns, songs and anthems. Our worship reached an audience wider than our membership.

We were delighted when we came back into church, even though the number of people allowed was reduced by social distancing rules. We have not been able to hold monthly services at Gibside Chapel. We knew many our members could not attend because they were ‘shielding or self isolating’ so we continued to make YouTube videos and started to use the ‘screen’ in church on a regular basis. We produced a digital weekly news sheet and monthly magazine. We became aware that not all our members were ‘on-line’ and so over time, and when safe to do so, we re-introduced a hard copy which is hand delivered. Our members have been good at forming their own networks, and many phone calls of support have been made through our ministers.

We have experienced three lockdowns. However during the last two, churches were given a choice as to whether to open or not. We made a choice to open based on our context and our ability to do so safely.

However, this past year has seen baptisms and weddings reduced in number as a couples and families decided to postpone or cancel. We have now re-started baptisms (with up to ten people allowed to attend) and are beginning to see wedding enquiries rise. I officiated at only two marriages last summer! Funerals have remained steady over the year and I have taken about sixty in that time. These were shared between church and crematorium.

I have remained in contact with the local schools and have included them in my prayers. I have also continued to offer support as a governor to three schools, and have made a few films for support/assemblies when invited to over the year.

From a personal standpoint I can tell you my work is as busy as ever despite being in lockdown. The number of emails I receive have doubled and a prioritisation system is still in place. This has coincided with me becoming Vicar of Swalwell last in January. This will mean that approximately 25% of my time will be spent working in my new parish.

You’ll be pleased to know we have completed the work to remedy the dampness to the ‘crèche’ area and expect to redecorate the inside of the church over the next few months. We have maintained contact with the PCC, Standing Committee, Diocese and external groups by using online Zoom or Team meetings.

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I wish to thank our staff for their understanding and work in helping us maintain on course. Initially all were furloughed, but more recently they are being asked to come back in a staged approach as and when necessary. We note with great sadness the sudden illness suffered by our Parish Manager Christine Graham, who has had to resign. Our members responded with a wonderful collection of £300. We will miss her immensely.

The Centre remains closed at this time, but has had a recent ‘deep clean’ and new boiler fitted. With the help of the Chair of the Halls Committee and the Treasurer who secured funding for ‘loss of building hire’ we are ready to re-open when given the green light. However, returning groups will need to meet our rigorous risk assessments and provide their own group assessments for our scrutiny.

While our contact and work for charities has been reduced, we have seen a wonderful community wide response to our Christmas and Lenten appeals. We have also maintained our Gateshead Food Bank Collection point in Tescos through the good will of our volunteers and the generosity of the people of Tesco and Whickham. We have also helped local families in need and built upon our partnerships with the Salvation Army and the NSPCC.

Throughout, the past year we have worked to a reduced budget and continued to pay a reduced parish contribution to the Diocese (which we’ve been able to increase recently). This has been made possible through careful planning by the PCC and the Standing and Finance Committees. However, I feel I must express my personal thanks to the PCC Treasurer and Centre Treasurer for their much needed guidance and professionalism. That said, I must thank you all for your much needed continued financial giving, without which we could not survive.

I believe that we have striven to achieve the aims of both the Church and the Charity. I hope and pray that this year will see safe a return to some sort of normality and promise to continue to work hard for God’s Kingdom, in the name of Jesus.

The Revd Barry Abbott Rector of Whickham Chairman of the Parochial Church Council

TREASURER’S REPORT

This Annual Report, which includes the Financial Statements, is produced to comply with the appropriate financial, charity, and church accounting regulations; and is subject to independent examination by a suitably qualified person. Copies of this Annual Report including the report of the independent examiner are sent to the Charity Commission and the Durham Diocese each year in line with regulatory requirements.

The coronavirus pandemic has severely restricted PCC activities since March 2020 with the church building itself either being closed or only open with access restrictions for most of the year, and the St Mary’s Centre being closed altogether. This obviously had significant impact on the PCC’s financial position for 2020 which makes the normal year to year comparisons impractical.

With regard to income, as the pandemic hit in late March the PCC had the benefit of the first quarter’s income being relatively intact. In addition significant numbers of planned giving donations are made by standing order so this was a steady source of regular income to the church throughout

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the year. However overall the Church lost some 30% of planned income and the Centre lost over 80% of its budgeted income. This was partly offset by government assistance in the form of the Job Retention [furlough] Scheme receipts of £12,309 and a discretionary grant via Gateshead Council to the Centre of £5,000.

For expenditure, all reasonable steps were taken to reduce expenses for example claims under the furlough scheme in respect of staff and reducing other commitments. The largest single item of expenditure was the Parish Share at £40,390; this was reduced from the original pledge of £70,000 because of reduced income. It was still possible to finally complete the wall/floor repairs of the crèche area at a cost of £11,268 excluding VAT [VAT was recovered under the Listed Places of Worship grant scheme].

From designated funds the main item of expenditure was £2,450 for a glass font liner being paid for by a generous family donation [this includes a provision of £1,250 respect of the portion of the work yet to be completed because of the impact of the pandemic lockdown on the availability of equipment].

Overall there was a small operational surplus of £11,810 [£915 deficit on the General Fund and £12,725 surplus on designated funds] which will be carried forward to support the following year.

For 2021, due to the significant and ongoing impact of the corona virus pandemic, the PCC has agreed a reduced annual General Fund operational budget of £80,070 for day to day activities which is substantially lower than that of previous years [£122,000 originally agreed for 2020]. This reduction reflects actual and anticipated falls in recurring income levels; although the ongoing uncertainties regarding lockdown, etc. make it extremely difficult to plan with any degree of accuracy. In order to potentially achieve a balanced position it was necessary to agree a reduced Parish Share contribution for 2021 of £40,000 [originally agreed at £70,000 for 2020 subsequently reduced to £40,390]. This reduction in Parish Share in 2021 is not unique to our parish and reflects pandemic and other financial pressures across all parishes within the Diocese and indeed the Church as a whole. The PCC is confident that it can continue to operate as a going concern throughout 2021 even if the current restrictions on numbers in services and access to buildings were to continue throughout the year although it is hoped for a return to some level of “normality” sooner rather than later.

The PCC continues to review the financial position on a regular basis to ensure ongoing sustainability of parish finances.

Ian Newton Treasurer of the Parochial Church Council

Annual Report approved by the PCC at the meeting of 15[th] March 2021 and signed on behalf of the PCC by;

Dated: 15[th] March 2021

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WHICKHAM

(St. Mary the Virgin, Whickham)

Registered Charity Number 1132270

Financial Statements Year ended 31[st] December 2020

Page 8

Statement of Financial Activities for the year to 31[st] December 2020

General Designated
This year Prior year
Fund
funds
total
total
£
£
£
£
Income from [Note 2]:
Donations and legacies
Income from charitable activities
Other trading activities
Investments
Other income [Note 13]
Total income
Expenditure on [Note 3]:
Raising funds
Expenditure on charitable activities
Total expenditure
Net income / (expenditure)
resources before transfer
Transfers
Gross transfers between funds - in
Gross transfers between funds - out
Net income / (expenditure)
resources after Transfers
Other recognised gains and
(losses);
Gains/(losses) on fixed assets [Note 4]
Gains/(losses) on investments [Note 5]
Net movement in funds
Total funds brought forward
Total funds carried forward
69,410
18,904
88,314
146,688
6,788
7,109
13,898
50,840
1,526
198
1,727
6,901
11,518
430
11,949
11,948
7,378
12,096
19,474
170
96,621
38,738
135,360
216,547
183
-
183
176
97,353
26,013
123,366
174,155
97,537
26,013
123,550
174,331
(915)
12,725
11,810
42,216
-
-
-
2,154
-
-
-
(2,154)
(915)
12,725
11,810
42,216
40,252
-
40,252
135,274
3,208
-
3,208
6,322
42,544
12,725
55,270
183,812
2,039,875
92,564
2,132,439
1,948,627
2,082,419
105,290
2,187,710
2,132,439

Page 9

Balance sheet as at 31 December 2020

General Designated
Total this
Total last
Fund
Fund
Year
Year
£
£
£
£
























Fixed assets;
Tangible assets [Note 4]
2,018,251

2,018,251
1,979,621
Investments [Note 5]
62,458

62,458
59,250
Total Fixed assets
2,080,709

2,080,709
2,038,871
Current assets;
Debtors [Note 6]
5,369
2,422
7,791
14,746
Cash at bank and in hand [Note 7]
9,971
106,854
116,825
94,658
Total current assets;
15,340
109,276
124,617
109,405
Liabilities;
Creditors falling due in one year [Note 8]
12,780
3,986
16,766
14,787
Current assets less current liabilities
2,560
105,290
107,850
94,617
Total assets less current liabilities
2,083,269
105,290
2,188,560
2,133,489
Long term liabilities;
Creditors falling due after more than one
year [Note 9]
850

850
1,050
Total net assets less long term liabilities
2,082,419
105,290
2,187,710
2,132,439
Represented by;
Unrestricted;
Unrestricted - General fund
2,082,419

2,082,419
2,039,875
Designated;
Play and Praise Fund

122
122
273
All Under One Roof Fund

87,010
87,010
71,370
Flower Fund

2,900
2,900
2,991
Rector's and Church Wardens' Fund

16
16
16
St. Mary's Centre Fund

15,240
15,240
17,912
Total funds of the charity
2,082,419
105,290
2,187,710
2,132,439

Approved by the PCC at the meeting held on 15[th] March 2021 and signed on its behalf by;

Page 10

Notes to the Financial Statements

Note 1 - Accounting policies

General

Trustees’ duties are set out in the Charities Act 2011 and Charity Trustee Act 1993. These Acts impose a duty on the trustees to direct the affairs of the charity, ensure that it is solvent, ensure that proper accurate accounting records are kept, and that statements of account which adhere to the charity law and accounting regulations are prepared in respect of each financial year.

These financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards. The current applicable Statement of Recommended Practice for Financial Reporting in Charities is FRS 102. Under the provisions of FRS 102, the PCC is not classified as a larger charity [i.e. annual gross income in excess of £500K] and therefore is not required to produce a Statement of Cash Flows.

The financial statements have been prepared under the historical cost convention except for freehold property, which is shown at insured value; and the valuation of investment assets, for which market value is used.

Funds

Unrestricted funds represent those 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. Designated funds are those which have been nominally allocated for a particular purpose by the PCC but which can be applied to other general proposes if required and are therefore also classed as unrestricted. The charity has no restricted or endowment funds.

The financial statements include all transactions, assets and liabilities for which the PCC itself is responsible in law. They do not include the financial statements of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.

Incoming resources

Voluntary income and collections are recognised when received by or on behalf of the PCC.

Planned giving donations receivable under Gift Aid are recognised only when received; tax recoverable on Gift Aid donations is recognised in the same year in which the donations are received.

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 fête, garden party and similar events are normally accounted for when received and shown gross where that information is available. Sales of books are accounted for gross.

Rental income from the letting of PCC premises is recognised when the rental is due.

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Investment income is accounted for when due and payable.

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 using the latest market valuation available as at 31 December.

Resources used

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

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

Fixed assets

Consecrated and benefice property of any kind is excluded from the financial statements in accordance with s.10 (2)(a) of the Charities Act 2011.

PCC freehold property which consists of the two Halls and 7a Coalway Drive is shown at latest insured value. Land on Park Drive which is occupied by the Scout building is shown at a nominal value of £1.

Halls’ contents and the piano are depreciated as indicated in Note 4.

Individual assets purchased with a value of £2,500 or less are charged direct to expenditure rather than being included in the balance sheet.

Investments are valued at market value at 31 December or the latest valuation available

Current assets

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

Short-term deposits include cash held on deposit either with the CBF Church of England Funds or at the bank.

Current liabilities

All known liabilities for which the PCC is responsible in law up to 31 December 2020 are included in the accounts.

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Note 2 - Analysis of income

Donations and legacies
0101 - Planned giving - standing orders
0110 - Planned giving - other
0301 - Loose plate collections
0550 - Donations, appeals, etc
0551 - Donations - AUOR
0555 - Donations - candles
0565 - Donations - Play and Praise
0601 - Tax recoverable on Gift Aid
0602 - Tax Recoverable on gift aid -
AUOR
0701 - Legacies -AUOR
0702 - Legacies
Donations and legacies Totals
Income from charitable activities
1101 - Fees for Weddings retained by PCC
1105 - Fees for Funerals retained by PCC
1220 - Bookstall sales
1240 - St Mary's Centre rentals
1250 - Parish magazine - Advertising
income
1260 - Parish magazine - Sales income
1270 - Flower fund income
Income from charitable activities
Totals
Other trading activities
0910 - Fund Raising
0940 - Parish Breakfast
0945 - Coffee pot
Other trading activities Totals
Investments
1020 - Investment income received
1021 - Interest Received -AUOR
1030 - Rent from lands or buildings
Investments Totals
Other income
0801 - Government Grants [Note 13]
1335 - Misc income
Other income Totals
Income and endowments
Grand totals
Donations and legacies
0101 - Planned giving - standing orders
0110 - Planned giving - other
0301 - Loose plate collections
0550 - Donations, appeals, etc
0551 - Donations - AUOR
0555 - Donations - candles
0565 - Donations - Play and Praise
0601 - Tax recoverable on Gift Aid
0602 - Tax Recoverable on gift aid -
AUOR
0701 - Legacies -AUOR
0702 - Legacies
Donations and legacies Totals
Income from charitable activities
1101 - Fees for Weddings retained by PCC
1105 - Fees for Funerals retained by PCC
1220 - Bookstall sales
1240 - St Mary's Centre rentals
1250 - Parish magazine - Advertising
income
1260 - Parish magazine - Sales income
1270 - Flower fund income
Income from charitable activities
Totals
Other trading activities
0910 - Fund Raising
0940 - Parish Breakfast
0945 - Coffee pot
Other trading activities Totals
Investments
1020 - Investment income received
1021 - Interest Received -AUOR
1030 - Rent from lands or buildings
Investments Totals
Other income
0801 - Government Grants [Note 13]
1335 - Misc income
Other income Totals
Income and endowments
Grand totals
General
Designated This Year Last year
36,724

36,724
33,254
10,645

10,645
25,930
3,884

3,884
15,254
5,127

5,127
3,787

12,500
12,500
2,525
143

143
644

404
404
822
12,885

12,885
15,345

500
500


5,500
5,500
42,123



7,000
69,410
18,904
88,314
146,687
913

913
4,211
5,607

5,607
4,796



115

7,055
7,055
36,116
(575)

(575)
1,002
843

843
3,562

54
54
1,037
6,788
7,109
13,898
50,840
1,411

1,411
5,834
114

114
439

198
198
627
1,526
198
1,724
6,900
1,318
56
1,374
1,364

374
374
383
10,200

10,200
10,200
11,518
430
11,949
11,947
7,378
12,096
19,474




170
7,378
12,096
19,474
170
96,621
38,738
135,360
216,547

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Note 3 – Analysis of expenditure

Raising funds
1725 - Planned giving envelopes 183 183 175
Raising funds Totals 183 183 175
Expenditure on charitable activities
1910 - Parish Share - Diocese 40,390 40,390 85,000
1920 - Parish contribution - Deanery 210
1925 - Parish Subscription - PMC - 350
Diocese
2001 - Pastoral Assistant costs 300 300 300
2010 - Verger 1,586 1,586 1,497
2015 - Choir master/organists 2,231 2,231 2,366
2050 - Salary of parish manager 5,000 5,017 10,017 9,448
2056 - Centre Assistant 4,599 3,500 8,099 6,389
2060 - Centre cleaner 3,584 3,584 3,385
2061 - Church Cleaner 1,669 1,669 1,269
2062 - Centre Gardener 448 448 423
2063 - Handyman 448 895 1,343 1,269
2070 - Play and Praise Leader 1,169 1,169 390
2101 - Working expenses of rector 3,000 3,000 3,000
2130 - Rectory expenses 5,773 5,773 5,628
2135 - St Mary's House expenses 532 532 517
2136 - St Mary's House - repairs 341
2205 - Children and youth activities 23 23 280
2207 - Play and praise activities 105
2210 - Church Life 341 341 1,110
2320 - Organ/piano repairs 162
2322 - Music, licences and choir 474 (375) 99 1,203
sundries
2325 - Altar Requisites 265 265 1,246
2330 - Church maintenance 17,239 17,239 4,220
2355 - Sundry expenses 54 54 102
2358 - Sundry expenses - DBS checks 9
2359 - Sundries - DBS check - Play and 48
Praise
2360 - Administration - postage, 763 3 766 1,154
stationery, etc
2361 - Administration - Telecoms 723 723 621
2362 - Administration - computer 319 504 823 240
s/ware/licence
2364 - Administration - photocopier 205 205 824
usage
2365 - Administration - Photocopier 834 834 1,112
lease
2367 - Administration - Bank charges 535 535 1,014
2370 - Visiting speakers / locums 96 96 219
2380 - Baptism and confirmation 89
2440 - Church running - heating, light & 3,086 3,086 5,793
water
2450 - Church - insurance 3,467 3,467 3,396
2501 - Magazine expenses 1,227 1,227 3,509
2515 - Flowers 146 146 919
2530 - Hall running - electricity 1,374 1,374 2,199
2540 - Hall running - gas 1,431 1,431 3,006
2550 - Hall running - insurance 2,669 2,669 2,615
2560 - Hall running - maintenance 1,155 1,155 5,233

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2570 - Hall running - telephone 328 328 281
2580 - Hall running - water 741 741 1,228
2590 - Hall running - cleaning materials 186 186 894
2600 - Centre Redevelopment 2,891
2850 - Quinquennial Inspection and 600 600
Report
2935 - AUOR - Screen and multi-media 816
system
2943 - AUOR - Choir robes 1,945
2945 - AUOR - Clergy Listing 729 729
2946 - AUOR - Font Liner 2,450 2,450
3500 - Depreciation 1,622 1,622 3,876
Expenditure on charitable 97,353 26,013 123,366 174,155
activities Totals
Expenditure Grand totals 97,537 26,013 123,550 174,331

Note 4 - Fixed assets for use by PCC

Opening book value brought forward
Additions during year
Revaluation increase (decrease) during
year
Depreciation for the year
Closing book value carried forward
Freehold
Land and
Buildings
Centre
Contents
Piano
Total
Prior
year
Totals
£
£
£
£
£
1,975,331
0
4,290
1,979,621
1,848,224
0
0
0
0
0
40,252
0
0
40,252
135,274
0
0
(1,622)
(1,622)
(3,877)
2,015,583
0
2,668
2,018,251
1,879,621

The freehold land and buildings comprise the house at 7a Coalway Drive, and the two halls known as St Mary’s Centre located at Church Chare. A direct commercial valuation is difficult; therefore the PCC includes these assets at insured value. A revaluation is carried out periodically by the insurer’s specialist staff with inflation indexation applied in years where no valuation takes place; the last formal valuation was carried out in 2014. The PCC also own the freehold land in Park Drive on which the Scout Hut [Heron House] is built; this is included at a nominal value of £1. As the freehold land and buildings are considered to have a very long remaining useful life no depreciation has been charged on those assets.

The Centre contents have largely been in use for many years and have a low recoverable value, therefore impairment was applied in 2015, and the resultant reduced residual value of £11,271 has been depreciated at the rate of 20% per annum on a straight line basis. This asset has now been fully depreciated with the final depreciation of £2,255 being charged in 2019.

A piano was purchased midway through 2015. Musical instruments are generally considered to have a life [for depreciation purposes] of approximately 7 years. Therefore depreciation at the rate of 14% on a straight line basis will be applied to this asset cost of £11,590 – this was £1,622 in 2020 [£1,622 in 2019].

The Church, the Rectory, and the churchyard are not vested with the PCC and are not therefore included as assets in these accounts.

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Note 5 – Investments

Note 5 – Investments
BlackRock Charities UK Bond Fund A Inc [1218.09]
CCLA Charinco Official Investment Fund [478]

BlackRock Charities UK Bond Fund A Acc [211.578]
M&G Charibond Income shares [9597]

CCLA CBF Income Shares [947.64]
DDBF/CCLA CBF Turnbull Trust [281.59]
DDBF/CCLA CBF Parochial School [130]
Total
Less prior year valuation
Annual Gain*
Cost
Current
Value #
Prior year
£
£
£
2,156
2,399
2,322
484
8,592
8,092
5,000
11,634
10,894
10,000
12,042
11,905
10,000
19,376
18,165
1,000
5,757
5,386
255
2,658
2,486
28,895
62,458
59,250
(59,250)
(52,928)
3,208
6,322

- Valuation is as at 31[st] December 2020 market value or latest valuation available at that time

Note 6 – Debtors

Income Tax – Gift Aid
Centre
Other
Total
Note 7 – Bank/Cash in hand
Bank – General account
Bank/cash – AUOR fund
Bank/cash – Centre fund
Bank/cash – other funds
Total
Note 8 – Creditors
Wedding deposits/prepaid fees for 2021
Maintenance/works provision
Centre
AUOR
Other
Total
Unrestricted
Designated
Total
Total
2020
2020
2020
2019
£
£
£
£
2,560
500
3,060
3,250
0
1,922
1,960
3,097
2,809
0
850
8,400
5,369
2,422
7,791
14,747
Unrestricted
Designated
Total
Total
2020
2020
2020
2019
£
£
£
£
9,971
140
10,111
(1,764)
0
87,760
87,760
72,815
0
16,054
16,054
20,326
0
2,900
2,900
3,281
9,971
106,854
116,825
94,658
Unrestricted
Designated
Total
Total
2020
2020
2020
2019
£
£
£
£
1,350
0
1,350
700
5,190
0
5,400
3,000
0
0
2,736
1,250
2,736
1,250
5,511
1,445
6,241
0
6,031
4,132
12,781
3,986
16,767
14,788

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Note 9 – Long Term Creditors/Prepayments

Prepaid wedding deposits over 12 months
Deposit – 7a Coalway Drive
Total
Unrestricted
Designated
Total
Total
2020
2020
2020
2019
£
£
£
£
0
0
0
200
850
0
850
850
850
0
850
1,050

Note 10 - Related Party Transactions

PCC members as Trustees have donated a total of £10,773 during the year [2019; £7,358]. There have been no other related party transactions agreed during the year which require reporting [None in 2019].

Note 11 – Personnel Costs
Salaries and other emoluments paid
Employers National Insurance
Pensions Costs
Total
Number of employees in post at 31 December
Average number of employees over the year
2020
2019
£
£
26,668
24,073
0
0
0
0
26,668
24,073
6
6
6
6

The above salary costs for 2020 are shown gross; any recovery from the Government Job Retention Scheme [“furlough” scheme] is shown as government grants under income – see Note 13 below.

There were no employees who meet the definition of “key management personnel” during the year [None in 2019].

No salary or employee benefits have been paid to Trustees in respect of their membership of the PCC [None in 2019].

Incumbent clergy’s salary is paid directly by the Durham Diocese and not by the PCC.

Note 12 – Reserves Policy

The PCC has agreed that it would be prudent to maintain a reserve at least equivalent to 3 months approved budgeted expenditure [excluding the Parish Share] from the General Fund. For 2020 this would have equated to a reserve requirement of £14,450; actual reserve held in the form of uncommitted [see Note 5] long term investments was £55,043, a cover ratio of 3.81 [2019; 4.16].

Note 13 – Government Grants

During 2020 the charity has received support in the form of various government grants;

General Designated Total
£ £ £
COVID-19 specific grants:
Government Discretionary Grant 0 5,000 5,000
[Business support via Gateshead Council]
Government Job Retention Scheme 5,213 7,096 12,309
[Employee “furlough scheme” via HMRC]

Page 17

Other grants:
Listed Places of Worship [VAT] Scheme 2,165 0 2,165
TOTAL 7,378 12,096 19,474

In line with the requirements of FRS102 these grants are shown gross as income rather than netting down appropriate expenditure.

Note 14 – Going Concern

The corona virus pandemic has had a significant effect on PCC income over the past year with the various lockdowns impacting on availability of church and centre buildings. The Standing Committee acting on behalf of the PCC reviewed the detailed cash flow forecasts prepared by the Treasurer throughout the year and regular reporting continues into 2021. The PCC is satisfied that despite the serious impact of the corona virus pandemic on the PCC finances, the charity is able to continue on a going concern basis during 2021. albeit with a much reduced income base and limited availability of facilities. The position is under regular review as part of the charity’s risk management procedures and any adverse change will reported to the PCC.

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