2022-12-31-accounts

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall Annual Report

and Financial Statements

of the Parochial Church Council for the year ended 31 December 2022

Clayton & Brewill Statutory Auditors and Chartered Accountants Cawley House 149-155 Canal Street Nottingham

Charity Commission Registered Number: 1132272

Page 1

Independent Examiners Report to the Trustees of

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Independent examiner’s report to the trustees of The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

I report to the charity trustees on my examination of the accounts of the church for the year ended 31 December 2022 which are set out on pages 2 to 12.

Responsibilities and basis of report

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

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed the 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 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 charity 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 contents 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 the 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.

Neil South BA FCA Clayton & Brewill Statutory Auditors and Chartered Accountants Cawley House 149-155 Canal Street Nottingham NG1 7HR

Date

Page 2

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Statement of Financial Activities

for the year ended 31 December 2022

Note Income and endowments 2 Donations and legacies 2(a) Other trading activities 2(b) Income from investments 2(c) Other income 2(d) Total income and endowments Expenditure 3 Expenditure on raising funds 3(a) Expended on charitable activities 3(b) Total expenditure Net gains on investments Gains on the revaluation of fixed assets Net income/(expenditure) Transfers between funds Net movement in funds for year Balances brought forward at 1 January 2022 Exiting church reserves Removal of investment property Prior year adjustment Balances carried forward at 31 December 2022	Unrestricted Funds £ 81,970 162,112 694 10,713	Restricted Funds £ 3,000 - 219 70 3,289 1,000 - 1,000 1,015 - - 1,276 12,434 13,710 465,220 - - - 478,930	Endowment Funds £ - - 1,765 - 1,765 - - - 7,957 - - (6,192) (1,765) (7,957) 72,239 - - - 64,282	Revaluation Reserve £ - - - - - - - - - - - - - 55,000 - - 55,000	Total Funds Total Funds 2022 2021 £ £ 84,970 110,910 162,112 116,382 2,679 2,442 10,783 44,303 260,543 274,037 1,125 - 246,305 227,463 247,430 227,463 11,108 - 23,340 - - 2,008 69,914 - - 2,008 69,914 822,191 752,277 - - (75,862) - - - 748,337 822,191
	255,489
	125 246,305
	246,430
	2,136 - -
	6,924 (10,669)
	(3,746) 229,732 - (75,862)
	- 150,125

Page 3

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Balance Sheet at 31 December 2022

Notes Fixed assets Tangible fixed assets 7 Investment assets 8 Total fixed assets Current assets Stock Debtors 9 Cash at bank and in hand Total current assets Current liabilities 10 Net current assets Net assets Funds Unrestricted 11 Restricted 11 Endowment 11 Revaluation Reserve 11 Total funds	450 8,989 137,416 146,855 (15,107)	2022 2021 £ £ 510,000 510,000 106,589 193,559 616,589 703,559 850 11,640 122,676 135,166 (16,535) 131,748 118,631 748,337 822,191 150,125 229,732 478,930 465,220 64,282 72,239 55,000 55,000 748,337 822,191

Approved by the Parochial Church Council on ................................................

……………………………………………… ……………………………………………… Trustee - Trustee -

The notes on pages 4 to 12 form part of these accounts

Page 4

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements

for the year ended 31 December 2022

1 Accounting Policies

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with the Charities SORP 2019 (FRS 102): ‘Accounting and Reporting by Charities, Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’ , FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (effective October 2019) and the Charities Act 2011.

These financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities.

The church constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared under the historical cost convention except for the valuation of the land and buildings (included within tangible fixed assets) and investment assets, which are all shown at market value.

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

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented.

Funds

General funds represent the funds of the Parish Church Council and are available for application on the general purposes of the PCC. These include funds designated for a particular purpose by the PCC.

Restricted funds are those funds that must be spent on restricted purposes. Endowment funds are where the capital must be retained. Details of the funds held are provided in note 9 and 1

The closing fund balances have been agreed for the year ended 31 December 2022.

Page 5

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements (Cont’d)

for the year ended 31 December 2022

Incoming Resources

Voluntary income and capital resources

receivable under covenant or gift aid is recognised only when received. Tax recoverable on covenanted or gift aid donations is recognised when 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 the church bookstall are accounted for gross.

Other Income

Rental income from the letting of church premises is recognised when the rental is due. Parochial fees due to the PCC for weddings, funerals etc are accounted for on an event by event basis.

Income from Investment

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.

Income from legacies

Legacies are recognised only when received.

Income from Grants

Grant income is recognised when received, or rewarded if that reward creates a binding obligation to the PCC

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.

Resources expended

Grants

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

Activities directly related 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.

.

Page 6

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements (Cont’d)

for the year ended 31 December 2022

Fixed Assets

Consecrated property and movable church furnishings

Consecrated and beneficed property of any kind is excluded from the financial statements by S 96(2) (a) of the Charities Act 2011.

Moveable church furnishing held by the vicar and churchwardens on special trust for the PCC and which require a faculty for disposal are accounted for as inalienable property unless consecrated. All expenditure incurred during the year on consecrated or beneficed buildings, individual items under £2,000 or on repair of movable church furnishings is written off.

Other Land and Buildings

Other land and buildings held on behalf of the PCC for its own purposes is valued at market value. No depreciation is charged against such properties, but any expenditure on maintenance or improvement is written off as incurred.

Other Fixtures, Fittings and Office Equipment

Equipment used within the church premises is depreciated on a straight line basis over its estimated life. Individual items of equipment with a purchase price of £2,000 or less are written off when the asset is acquired.

Investments

Investments are stated at market value at the balance sheet date. The statement of financial activities includes the net gains or losses arising in the revaluation and disposals throughout the year.

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 they prove uncollectable.

Stock

Stock is valued on a FIFO basis at the lower of cost and net realisable value.

Taxation

The charity is exempt from tax on its charitable activities.

Page 7

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements (Cont’d)

for the year ended 31 December 2022

2(a) Donations and legacies Planned giving: Convenants Income tax recoverable on convenants Unconvenanted Collections (open plate) at all services Sundry donations Grants Donations / appeals Total donations and legacies 2(b) Other trading activities Fund raising events Bookstall Memorabilia Church hall lettings etc. Fees Total other trading activities 2(c) Income from investments Dividends and interest Total income from investments 2(d) Other income Other Total other income Total income	Unrestricted Funds £ 48,822 11,725 - 2,760 10,340 - 8,323 81,970 27,864 - 36 109,236 24,976 162,112 694 694 10,713 10,713 255,489	Restricted Funds £ - - - - 3,000 - - 3,000 - - - - - - 219 219 70 70 3,289	Endowment Funds £ - - - - - - - - - - - - - - 1,765 1,765 - - 1,765	Total Funds Total Funds 2022 2021 £ £ 48,822 43,839 11,725 12,515 - - 2,760 2,449 13,340 39,343 - - 8,323 12,764 84,970 110,910 27,864 11,550 - - 36 - 109,236 78,731 24,976 26,101 162,112 116,382 2,679 2,442 2,679 2,442 10,783 44,303 10,783 44,303 260,543 274,037

Page 8

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements (Cont’d)

for the year ended 31 December 2022

3(a) Expenditure on raising funds Grants overseas Grants home Fundraising and publicity Total expenditure on raising funds 3(b) Expenditure on charitable activities Ministry Parish share Clergy expenses Assigned fees Church running expenses Church maintenance Training Youth work Giving programme Upkeep of churchyard Church hall running costs Organist Fees Other Administration Depreciation Bank charges and loan interest Independent examination fee Total expenditure on charitable activities Total expenditure	Unrestricted Funds £ - 125 - 125 57,000 3,207 9,389 22,895 1,334 239 346 - 492 132,633 6,345 1,686 7,616 - 255 2,868 246,305 246,430	Restricted Funds £ 1,000 - - 1,000 - - - - - - - - - - - - - - - - - 1,000	Endowment Funds £ - - - - - - - - - - - - - - - - - - - - - -	Total Funds Total Funds 2022 2021 £ £ 1,000 - 125 - - - 1,125 - 57,000 18,507 3,207 2,031 9,389 9,829 22,895 17,370 1,334 33,816 239 207 346 127 - - 492 84 132,633 131,284 6,345 4,664 1,686 179 7,616 6,235 - - 255 94 2,868 3,036 246,305 227,463 247,430 227,463

Page 9 The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements

for the year ended 31 December 2022

4 Trustee remuneration and expenses

Two trustees receieved remuneration totalling £10,630 during the year for work performed at the John Godber Centre (2021: £3,410), and no trustees were paid any expenses during the year (2021: £nil).

5 Staff expenses

Wages and salaries National insurance contributions Pension contributions Average number of staff	2022 2021 98,490 78,609 - - 1,130 902 99,620 79,511 12 (2021: 10)

No employee received total employee benefits of more than £60,000 (2021: none).

6 Accountancy Fees

Accountancy Fees
	2022	2021
Independent Examination fee	2,868	3,036

Page 10

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements

for the year ended 31 December 2022

7 Fixed assets for use by the PCC

Gross book value At 01/01/22 Additions Disposals Revaluations At 31/12/22 Depreciation At 01/01/22 Charge Eliminated on disposal At 31/12/22 Net book value At 31/12/22 At 31/12/21	Freehold land and buildings Other Total £ £ £ 510,000 11,835 521,835 - - - - - - - - - 510,000 11,835 521,835 - 11,835 11,835 - - - - - - - 11,835 11,835 510,000 - 510,000 510,000 - 510,000

The freehold land and buildings comprise the Godber Memorial Hall (valued at £330,000) and the St John’s Church Hall (valued at £180,000). These are valued at their open market value. A formal valuation was performed on St Johns Hall in January 2013 and The Godber Memorial Hall in January 2019 by Littlewood & Company, Chartered Surveyors. The trustees believe that this valaution is still appropraite and an accurate reflection of the market valuation of the freehold land and buildings as at 31 December 2022.

Page 11

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements

for the year ended 31 December 2022

8 Investments

Market value at 1 January 2022 Disposal at carrying value Purchases at cost Removal of investment property Revaluation gain/(loss) Market value at 31 December 2022	£ 193,559 - - (75,862) (11,108)
	106,589

Shares and investment in the CBF's investment fund - historical cost £31,671 The market value at 31 December 2022 represents investments for:

Unrestricted funds Restricted funds Endowment funds 9 Debtors Trade debtors Prepayments 10 Liabilities Trade creditors Parish share Accruals and deferred income	2022 7,709 1,280 5 8,989 2022 2,285 - 12,822 15,107	34,630 7,677 64,282
		106,589
		2021 10,658 982 5
		11,640
		2021 2,681 36,357 9,644
		48,682

Page 12

The Parish of St Mary Magdalene with St John the Evangelist, Hucknall

Notes to the Financial Statements

for the year ended 31 December 2022

11 Analysis of net assets by fund

Fixed assets Fixed asset investments Current assets Current liabilities	Unrestricted funds Restricted funds Endowment funds Revaluation Reserve 2022 2021 £ £ £ £ - 455,000 - 55,000 510,000 510,000 34,630 7,677 64,282 - 106,589 193,559 130,602 16,253 - - 146,855 135,167 (15,107) - - - (15,107) (16,535) 150,125 478,930 64,282 55,000 748,337 822,191

12 Fund details

The restricted funds comprise the Godber Memorial Hall, St John’s Church Hall, along with various small funds.

The endowment fund comprises of several bequests for specific activities within the church. These are permanent endowments, which require the income to be spent on these specific activities.

The general funds consist of the funds of the Parish Church Council. These are available for application on the general purpose of the PCC.

13 Related Party Transactions

There were no related party transactions (2021: none).