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 2022
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The Parochial Church Council (PCC) presents its annual report for the year ended 31st December 2022, 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 jointly 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 operates a number of committees, each dealing with particular aspects of parish life. These committees, which include Finance and Standing, Church Life and Events, and Buildings and Centre Management 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 2022 :
Ex Ofcio members : Incumbent: The Reverend Barry J Abbott (Chairman) Church Wardens: Joan Porteous Ann Wilson Diocesan Synod: Susan Lister (PCC Secretary) Deanery Synod: Jill Abbott Brian Gregory Joan Smith Dorothy Clasper left April 2022 PCC Elected members: Carole Dixon left April 2022 William Heslop Diana Wright Ian Newton (PCC Treasurer) Katherine Walton left April 2022 Margaret Wood Brian Wilson elected January 2022
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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offering people the opportunity to gather together for worship, prayer and teaching at a range of services and meetings throughout the week;
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providing pastoral care in a variety of ways e.g. visiting the sick, supporting those with special needs, providing help and advice in times of joy [marriage and baptism] or sadness [bereavement];
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offering programmes of teaching to young people in conjunction with relevant events and activities;
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promoting and supporting partnerships with churches, organisations and people involved in the faith, love and hope of Christ in action at home and abroad;
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providing accommodation and facilities for the use of voluntary organisations within the locality;
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participate actively in local events and voluntary work within our community.
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 and regular updates by the Treasurer at each formal PCC meeting. The pandemic significantly impacted on income levels since March 2020 which are only now beginning to recover, where necessary expenditure has been reduced accordingly and available grants claimed.
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.
As required by charity regulations the annual report and financial statements together supporting working papers are examined each year by an Independent Examiner.
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.
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.
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.
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CHAIRMAN’S ANNUAL REPORT
Once again, I find myself feeling thankful for the work and understanding shown by you, our members, the PCC and Committees. Your work and commitment is appreciated by all, both in and beyond, the church. It has been good to have our church activities restored following lockdowns and restrictions.
That said, although we have seen many members coming back to worship, our congregation numbers have not reached pre-Covid levels and similarly many users have not returned to our Centre. The PCC have formed a pastoral team who are contacting friends we’ve yet to see return, and are beginning to think of ways of promoting the Centre throughout our Community. I would ask members to actively encourage/invite our friends to return. Reduced numbers in Church and Centre are adversely affecting our financial capabilities to cope in the areas of ministry, mission and upkeep.
Our occasional offices are increasing steadily, with bookings of Baptisms & Weddings running into next year. Funerals remain high. Schools continue to include us in their celebrations and events. We are viewed as supportive and relevant to our community. And we are pleased to have had Margaret Wood Licensed as a Reader to the Parish and Anne Robertson doing so well in her ordination training.
However, it remains quite clear to the PCC, that we are in a time of re-building and re-growing our congregation. I ask your continued support in this tough time, through worship, prayer and the encouragement of others.
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 limited PCC activities since March 2020 but these are gradually reopening although there was still a significant ongoing impact on the PCC’s financial position for 2022 which makes the normal year to year comparisons impractical. Perversely the actual reopening of activities can adversely impact on the financial position e.g. St Mary’s Centre has been particularly badly affected as costs of re-opening have not seen a commensurate recovery of rental income which led to a deficit for the year of £5,037.In addition the energy crisis, high inflation, and adverse economic conditions have also impacted PCC activities during 2022 and continue into 2023.
The PCC is fortunate that significant numbers of planned giving donations are made by standing order as this has provided a steady source of regular income to the church throughout the year.
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For expenditure, all reasonable steps were taken to reduce expenses, for example claiming for various grants [see Note 13] and reducing other commitments. The largest single item of expenditure was the Parish Share at £55,000; this included an additional contribution of £15,000 which the parish felt able to give despite the problems of cost of living crisis, rising inflation, energy costs, and the residual effects of Covid.
There was a surplus of £ 3,610 on the day to day operating activities of the General Fund. However there was a deficit of £5,246 on Designated funds leading to an overall net loss on income and expenditure of £1,637. In additional the market value of investments fell due to the depressed economic climate [see Note 5].
For 2023 there is a slightly increased annual General Fund operational budget for day to day activities of £91,450 [£89,000 in 2022]. This figure reflects an expected increase in recurring income levels although this is offset by increasing costs. The ongoing uncertainties arising from the current national economic position make it extremely difficult to plan with any total degree of accuracy although it is hoped that there will be a continued return to some level of “normality” during 2023. With regard to the Centre, rentals are being increased and new customers are being sort. The Parish Share contribution from the annual budget for 2023 is maintained at the same level as the underlying rate for 2022 i.e.£40,000.
The PCC is confident that the charity can continue to operate as a going concern based on the current financial position throughout 2023. 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 6[th] March 2023 and signed on behalf of the PCC by;
Dated: 6[th] March 2023
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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 2022
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Slatement of Financifil Activities For t he rIOd f rom 01 January 2022 to 31 Dece Mtrr 2022 VDrevtrKSed 2022 T1 ID ly1è &)otÉ ?] 32L 319 (rne t(nl.-IxT 20223 rlef7 11493 9&3BO 20.164 IIB 543 113.96 EXnde IMJ 4. T<al 94.lyo ZJ410 120 180 122.36 i.Gio 152461 IL£371 eloie knw5DenY 94WsWsStS1 15246 Tra515 . Yari OJ Ilosses 10-. Od9 Netnioniil #i I111S I.075 I416) 141260 102 7J2 Re(L Gf fwd5 T(al li= 2 J94970 93492 2290 462 2.187 710 2.331 04 90616 2131 722 Z290 i£2 Representeil by 341 1] 2>1041 J'i.J•r Frwj 7ai?s 77QgO arid pryaJ Jr7d gec)J = crid CMircTh FLknd -. Ilary: CerlJe lQ09t Gi.,) d TO[ LTrf Fiiiid< 34L:J6 22J:.4f > Page 8
Approved by the PCC at the meeting held on 6[th] March 2023 and signed on its behalf by;
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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. Investment income is accounted for when due and payable.
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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.
The piano has been 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 non-collectable.
Short-term deposits include cash held on deposit either with the CBF Church of England Funds or at bank.
Current liabilities
All known liabilities for which the PCC is responsible in law up to 31 December 2022 are included in the accounts.
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Note 3 - Aiialysis of Expeiiditure
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| Note 4 - Fixed assets for use by PCC | |||||
|---|---|---|---|---|---|
| Freehold | Centre | Piano | Total | Prior | |
| Land and | Contents | year | |||
| Buildings | |||||
| Totals | |||||
| £ | £ | £ | £ | £ | |
| Opening book value brought forward | 2,122,652 | 0 | 1,046 | 2,123,698 | 2,018,25 |
| 1 | |||||
| Additions during the year | 0 | 0 | 0 | 0 | 0 |
| Revaluation increase (decrease) during the | 151,879 | 0 | 0 | 151,879 | 107,069 |
| year | |||||
| Depreciation charged for the year | 0 | 0 | (1,046) | (1,046 | (1,622) |
| Closing book value carried forward | 2,274,531 | 0 | 0 | 2,274,531 | 2,123,69 |
| 8 |
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 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 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 £1,046 in 2022 [£1,622 in 2021]; this asset has now been fully depreciated in 2022
The Church, the Rectory, and the churchyard are not vested with the PCC and are not therefore included as assets in these accounts.
Note 5 – Investments
| Note 5 – Investments | |
|---|---|
| BlackRock Charities UK Bond Fund A Income [1218.09] BlackRock Charities UK Bond Fund A Accumulation [211.578] M&G Charibond Income shares [9597] CCLA Charinco Official Investment Fund [478] 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(Loss)* |
Cost Current Value # Prior year £ £ £ |
| 2,156 1,731 2,242 5,000 8,897 11,135 10,000 10,395 11,719 484 8,675 9,831 10,000 19,565 22,192 1,000 5,814 6,585 255 2,684 3,040 |
|
| 28,895 57,761 66,744 (66,744) (62,458) |
|
| (8,983) 4,286 |
- Valuation is as at 31[st] December 2022 market value or latest valuation available at that time
-
- Uncommitted – re Note12
Due to current national and worldwide economic position the book valuation of all investments has fallen this year.
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Note 6 – Debtors
| Note 6 – Debtors | ||||
|---|---|---|---|---|
| Unrestricted | Designated | Total | Total | |
| 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Income Tax – Gift Aid | 2,626 | 0 | 2,626 | 2,666 |
| Centre | 1,963 | 45 | 2,008 | 2,829 |
| Other | 1,034 | 0 | 1,034 | 1,111 |
| Total | 5,623 | 45 | 5,668 | 6,606 |
| Note 7 – Bank/Cash in hand | ||||
| Unrestricted | Designated | Total | Total | |
| 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Bank – General Fund | 21,482 | 0 | 21,482 | 19,434 |
| Cash in Hand – General Fund | 129 | 0 | 129 | 0 |
| Bank/cash – AUOR fund | 0 | 78,125 | 78,125 | 77,761 |
| Bank/cash – Centre fund | 0 | 15,139 | 15,139 | 20,465 |
| Bank/cash – other funds | 0 | 2,454 | 2,454 | 2,737 |
| Total | 21,611 | 95,718 | 117,329 | 120,394 |
| Note 8 – Creditors | ||||
| Unrestricted | Designated | Total | Total | |
| 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Wedding deposits/prepaid fees for 2022 | 2,200 | 0 | 2,200 | 1,950 |
| Maintenance/works provision | 9,859 | 0 | 9,859 | 13,670 |
| Centre | 0 | 5,087 | 5,087 | 6,081 |
| AUOR | 0 | 0 | 0 | 0 |
| Other | 5,572 | 0 | 5,572 | 1,179 |
| Total | 17,631 | 5,087 | 22,718 | 25,880 |
| Note 9 – Long Term Creditors/Prepayments | ||||
| Unrestricted | Designated | Total | Total | |
| 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Prepaid wedding deposits over 12 months | 0 | 0 | 0 |
250 |
| Deposit – 7a Coalway Drive | 850 | 0 | 850 | 850 |
| Total | 850 | 0 | 850 | 1,050 |
Note 10 - Related Party Transactions
PCC members as Trustees have donated a total of £8,834 during the year [2021; £10,490]. The reduction is due to there being fewer PCC members in 2022.
There have been no other related party transactions agreed during the year which require reporting [None in 2021].
Note 11 – Personnel Costs
| Salaries and other emoluments paid Employers National Insurance Pensions Costs Total |
2022 2021 |
|---|---|
| £ £ |
|
| 22,674 18,245 0 0 0 0 |
|
| 22,674 18,245 |
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Number of employees in post at 31 December 5 5 Average number of employees over the year 5 5
The above salary costs for are shown gross; any recovery amounts received from the Government Job Retention Scheme [“furlough” scheme] during 2021 are shown under government grant income for that year – see Note 13 below.
There were no employees who meet the definition of “key management personnel” during the year [None in 2021].
No salary or employee benefits have been paid to Trustees in respect of their membership of the PCC [None in 2021].
The incumbent clergy’s salary is paid directly by the Durham Diocese and not by the PCC and is therefore excluded from these accounts.
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 2022 this would have equated to a reserve requirement of £12,250; actual reserve held in the form of uncommitted [see Note 5] long term investments was £49,263, a cover ratio of 4.02 [2021; 5.7]. The decrease in cover ratio is largely due to the reduction in investment market values in 2022.
Note 13 – Grants
During 2022 the charity has received support in the form of various grants;
| General | Designated Total | 2021 | |
|---|---|---|---|
| £ |
£ £ | £ | |
| COVID-19 specific grants: | |||
| Government Discretionary Grant | 0 | 0 0 | 10,571 |
| [Business support via Gateshead Council] | |||
| Government Job Retention Scheme | 0 | 0 0 |
5,851 |
| [Employee “furlough scheme” via HMRC] | |||
| Other grants: | |||
| Church of England; Energy Support | 2,561 | 0 2,561 | 0 |
| Church of England; Warm Space | 0 | 1,000 1,000 | 0 |
| ASDA Foundation; Cost of Living/cookery | 0 | 515 515 | 0 |
| Listed Places of Worship [VAT] Scheme | 184 | 0 184 | 361 |
| TOTAL | 2,745 | 1,515 4,260 | 16,783 |
In line with the requirements of FRS102 these grants are shown gross as income rather than netting down appropriate expenditure. The “furlough scheme” was gradually phased out during the summer of 2021 eventually terminating after 30 September 2021.
Note 14 – Going Concern
The corona virus pandemic had a significant effect on PCC income over the past 3 years and this continues to some extent into 2023. The energy crisis, high inflation, and adverse economic conditions have also impacted during 2022 and continue into 2023. The Trustees are satisfied that despite the serious impact of these issues on the PCC finances, the charity will be able to continue on a going concern basis during 2023. Detailed cash flow forecasts are prepared by the PCC Treasurer throughout each year and the financial position is regularly reported to the PCC as part of risk management procedures.
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