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2021-12-31-accounts

Charity registration number 1132598

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

LEGAL AND ADMINISTRATIVE INFORMATION

Members Of The PCC
Members Of The PCC Rev Mark Melluish
Vicky Read
Rev Chris Fox
Emma Buck
Alan Philips
Ruth Dales
Coral Powell
Elizabeth Patel
Aruliniyan Nathaniel
Nicholas Taylor
Timothy Radcliffe
Oscar Carshagen (Appointed 25 April 2022)
Paul Pambakian (Appointed 25 April 2022)
Charity number 1132598
Auditor Summers Morgan
First Floor, Sheraton House
Lower Road
Chorleywood
Hertfordshire
WD3 5LH
Bankers Lloyds TSB Bank plc
45 The Broadway
Ealing
London
W5 5JU
Solicitors EDC Lord
Link House
1200 Uxbridge Road
Hayes
Middlesex
UB4 8JD

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

CONTENTS

Page
The PCC's report 1 - 6
Statement of The PCC's responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 28

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

THE PCC'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Members of the PCC present their report and accounts for the year ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Church Accounting Regulations, applicable law and the requirements of the Statement of Recommended Practice, "Accounting and Reporting by Charities" issued in March 20 05 .

Objectives and activities

Our vision at St Paul’s Church is to be a church where everyone is made welcome and everyone knows that they matter, both to us as a community and to God. We believe that everyone has something to bring that will add colour and creativity to the church family. We try to be an authentic Acts 2 church.

We are committed to following and trying to live like Jesus and as the disciple Paul encourages us, we need to let love be our highest goal. This means we look for ways to love and serve each other and our wider community. And if we make love our highest goal, we need to be those who receive love and give love to others.

Our mission statement is as follows…

As a church, we believe that God is calling us to something bigger than we are currently and the Diocese of London has appointed St Paul’s to be one of its Resource Churches. Our vision for this is that we will plant new churches in communities with no church presence, help to revitalise and renew existing churches and support and encourage other churches who ask for help. All of this is to enable the Kingdom of God to expand and grow in our wider community.

The Members of the PCC have paid due regard to guidance issued by the Charity Commission on public benefit, and in particular the supplementary guidance on charities for the advancement of religion, when deciding what activities the PCC should undertake.

Achievements and performance

2021 was perhaps one of the most unusual years in church life with the stop/start of services and the nervousness that there was of people meeting together throughout the year. This meant that we have had to adapt and change many of our activities to ensure that we could respond to the changing needs of our community in a Covid secure way.

2021 also marked a big change for us within the staff team. At the end of the year, we said goodbye to John Murphy, who having served for 10 years as our worship pastor moved on to work full time in education. John was an amazing blessing to us all and will continue to be missed in many ways. Ben Strain moved on and is now leading Holy Trinity Sydenham and Forest Hill and we are so pleased to hear his regular reports back as to how things are going for him and Lydia there.

We continue to celebrate what God is doing across our family of churches:

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

THE PCC'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Established ministries

Our desire to serve our local community is one that trumps almost everything else that we do. We believe wholeheartedly in the two greatest commandments - to love the Lord with all of your heart, soul, mind and strength and to love your your neighbour as yourself. In 2021, despite restrictions, we shown that we have found different ways in doing both of those.

Some of the highlights are:

Our church family life was also been affected by the changing restrictions and required us to explore new ways of running groups, ministries and services and ensuring that we are still able to meet as a church family. We are very thankful for those who found ways to livestream our services and also new and creative ways in helping us engage with worship and teaching during this time.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

THE PCC'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Our relationship with New Wine continues, through members of our staff team. Chris Fox continues to lead the New Wine Discipleship Year; Mark Melluish continues to mentor individual church leaders and regularly speak at New Wine Celebration services and network meetings. Many others from St Paul’s continue to serve the ministry of New Wine in a variety of ways including children’s ministry and worship.

We continue to support other ministries locally, such as Ealing Foodbank, Ealing Soup Kitchen, Street Pastors and in many places around the world such as Mozambique, Kenya, India and South Africa.

New and emerging activities

As part of our role as a Resource Church in London diocese, in the summer of 2020 we welcomed Tim & Lucy Radcliffe and their children to St Paul’s. We are continuing to explore opportunities for church planting as we go forwards and what this may involve in the post=pandemic landscape.

With the ever-increasing focus on the environment, climate change and the use of resources, we have made a number of changes as a church to help reduce the environmental impact that we have. We have taken steps to try to minimise our use of single use items, especially plastics in all aspects of church life, from disposal cutlery to craft activity resources. We actively manage the energy that we use and have reduced this substantially over the last few years, with LED bulbs, zoned heating etc. We were awarded the Silver EcoChurch award by Arocha in 2019, which was great but there is still more we know we can do. We had hoped to do this in 2021 but during 2022, we plan to install PV solar panels on the roof of the church to supply most, if not all, of our energy needs and are also looking at ways to further reduce our gas usage.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

THE PCC'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Financial review

The financial transactions during the year and the financial position at the end of the year are set out in the attached accounts. The members of the PCC consider that the accounts show a satisfactory position.

The continuing generosity of church members enabled the PCC to meet its normal commitments for running and maintaining the Church and its activities. Like many churches, we have carefully managed our expenditure in the light of economic uncertainty and its potential impact on our income.

We experienced a small reduction in our income from regular donations, such as planned giving, because of the financial uncertainty during 2021. The PCC is grateful to all those who contribute financially to the work of the church, without whose generosity we would be unable to serve our community effectively. Collections at services remained below the levels seen in previous years due to lower cash contributions but since November contactless donations can be made during the services which has helped to reverse this.

Income from hall hire has increased by £15k as the ending of many Covid restrictions meant that more hall users were able to resume their businesses and Adhoc bookings for parties were greater. The PCC also agreed to defer the payment of rental income from New Wine from July to December 2021 – this is being repaid in 2022. The PCC also received £3k of government grants through the Covid Job Retention Scheme.

Our ministry costs were slightly increased in 2021 as many of our groups, activities and ministries were able to slowly resume during the course of the year. During the year the PCC carried out necessary repairs to the church and its other properties and maintained them in good order. A new kitchenette was fitted in the balcony room but no major projects were completed in the halls.

Our current liabilities include a loan from a congregation member for the purchase of a house in 2012 and a donation was received during 2020 which enabled us to repay just under half of this but the PCC has plans in place to ensure that the remainder can be repaid when it is due in 2022.

The PCC expects its regular expenditure commitments in 2022 to be similar to those of 2021 because we will continue with our current ministries and activities. Our hope for 2022 is to install solar panels on the church roof and batteries for storing used electricity and, if funding allows, we plan to replace the gas fired heaters in the church nave with a wet central heating system and we have already saved over £100k towards this. We will continue to save towards this project and complete this as funding allows.

The number of staff is expected to remain the same and we currently have a vacant youth pastor role but we hope to appoint to this role during the summer. We are committed to paying all of our staff the London Living Wage. Income is expected to increase in 2022 and activities and staffing will be managed in line with the level of income achieved.

At the balance sheet date the Charity holds reserves totalling £653,355 (2020: £595,501), comprising restricted reserves of £29,514 (2020: £16,135) and unrestricted reserves of £623,841 (2020: £579,366).

Reserves Policy

The Trustees believe that St Paul’s relies on God’s provision for the financial resources needed to fund its work. This means that it is the policy of the PCC to ensure that we don’t build up reserves beyond the operating requirements of the church and, as far as is practicable, to use income received in the course of the year on its purposes. At the accounting date free reserves were £214,175 (2020: £147,292).

However, in order to allow for fluctuations in the timing of income or in the case of unforeseen expenditure, the Trustees aim to hold sufficient ‘free’ reserves to cover three months’ net expenditure after taking into account monthly donation income. For 2021, this has been calculated as unrestricted funds less fixed assets and long term debtors expected to be settled over a number of years and the ‘free’ reserves are currently above this target. The PCC will be reviewing the reserves policy and level of cover during 2022 to ensure that our reserves continue to match our operating costs.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

THE PCC'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Risk Management

The members of the PCC have reviewed the major strategic and operational risks the PCC faces, through regular meetings of the standing committee and are satisfied that all reasonable measures are in place to mitigate their potential effect. They intend to keep these matters under regular review and consider the controls and procedures to mitigate them. The Governance and Risk Committee meet regularly and to ensure that all risks are actively managed and monitored and that all aspects of governance are considered and any areas of concern or interest are brought to PCC for consideration and action.

The trustees consider variability of income received through planned giving and gifts to constitute the charity’s major financial risk. This is mitigated by a monthly review of income and its sources including monthly cashflow forecasting by the Chair and Treasurer and consideration of actions needed to remediate this, such as a reduction in planned activities and expenditure.

Plans for the Future

The PCC is continuing its plan to enhance the facilities in the church and its halls so that they offer facilities that are fit for purpose and can be a blessing to those who use them. We hope to update the toilet facilities in the balcony room during 2022. We will continue to reduce our carbon footprint through reducing our energy usage, through LED bulbs, smart heating and lighting where possible and to install solar panels on our roof. We will also focus on continuing to resource other the other churches in the St Paul’s family.

Structure, governance and management

The PCC has the responsibility for co-operating with the clergy in promoting the whole mission of the Church in the parish and in maintaining the church buildings.

The Members of the PCC who served during the year and up to the date of signature of the financial statements were:

Rev Mark Melluish Vicky Read Nick Becker Rev Chris Fox Emma Buck Alan Philips Ruth Dales Rev Ben Strain (Resigned 31 December 2021) Coral Powell Elizabeth Patel Aruliniyan Nathaniel Darren Young Alison Trott Nicholas Taylor Zoe Kowalski (Resigned 16 October 2021) Timothy Radcliffe Oscar Carshagen (Appointed 25 April 2022) Paul Pambakian (Appointed 25 April 2022)

The method of election of the PCC members is as set out in the Church Representation Rules and they are appointed at the annual meeting of church members. The full PCC delegates responsibility for overseeing day-to-day matters to the Standing committee, the Fabric Committee and the Missions Committee.

The church has sponsored the establishment of a separate charitable trust, the West London Community Trust, the main activity of which is the support of awareness of Christianity in West London. This includes facilitating the New Wine Discipleship Year hub in West London, hosting the Christians Against Poverty debt counselling service, Besom ministry and supporting pastoral work in a local prison.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

THE PCC'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

The PCC consider the senior pastoral team - M Melluish, L Melluish, C Fox, S Richardson and V Read to be the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis.

A number of PCC members give their time freely and no remuneration was paid during the year. Details of the PCC members receiving remuneration during the year are detailed in notes to the accounts.

PCC members are required to disclose all relevant interests and register them with V Read in accordance with the PCC's policy to withdraw from decisions where a conflict of interest arises.

The The PCC's r eport was approved by the Board of Members Of The PCC.

Rev Mark Melluish

Dated: 25 April 2022

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

STATEMENT OF THE PCC'S RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The Members of the PCC are responsible for preparing the The PCC's Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Members of the PCC to prepare accounts for each financial year which give a true and fair view of the state of affairs of the PCC and of the incoming resources and application of resources of the PCC for that year.

In preparing these accounts, the Members of the PCC are required to:

The Members of the PCC are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the PCC and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2015 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the PCC and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE PCC OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

Opinion

We have audited the financial statements of The Parochial Church Council of the Ecclesiastical Parish of St Paul's Ealing (the ‘PCC’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the PCC in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the The PCC's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the PCC’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Members of the PCC with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Members of the PCC are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF THE PCC OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

Matters on which we are required to report by exception

the information given in the financial statements is inconsistent in any material respect with the The PCC's r eport; or

Responsibilities of Members of the PCC

As explained more fully in the s tatement of The PCC's r esponsibilities, the Members of the PCC are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Members of the PCC determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Members of the PCC are responsible for assessing the PCC’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Members of the PCC either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF THE PCC OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Corden ACA (Senior Statutory Auditor)
for and on behalf of Summers Morgan 16 June 2022
Chartered Accountants
Statutory Auditor First Floor, Sheraton House
Lower Road
Chorleywood
Hertfordshire
WD3 5LH

Summers Morgan is eligible for appointment as auditor of the PCC by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Current financial year
Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
599,873
47,162
Charitable activities
4
8,390
-
Investments
5
89
-
Other income
6
108,649
-
Total income
717,001
47,162
Expenditure on:
Raising funds
7
3,244
-
Charitable activities
8
669,282
33,783
Total expenditure
672,526
33,783
Net income for the year/
Net movement in funds
44,475
13,379
Fund balances at 1 January 2021
579,366
16,135
Fund balances at 31 December 2021
623,841
29,514		 Total
2021
£
647,035
8,390
89
108,649
764,163
3,244
703,065
706,309
57,854
595,501
653,355		 Total
2020
£
650,780
11,373
16
98,025
760,194
2,582
683,423
686,005
74,189
521,312
595,501

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Prior financial year
Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
640,768
10,012
Charitable activities
4
11,373
-
Investments
5
16
-
Other income
6
98,025
-
Total income
750,182
10,012
Expenditure on:
Raising funds
7
2,582
-
Charitable activities
8
665,220
18,203
Total expenditure
667,802
18,203
Gross transfers between funds
1,181
(1,181)
Net income for the year/
Net movement in funds
83,561
(9,372)
Fund balances at 1 January 2020
495,805
25,507
Fund balances at 31 December 2020
579,366
16,135		 Total
2020
£
650,780
11,373
16
98,025
760,194
2,582
683,423
686,005
-
74,189
521,312
595,501

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
18
Unrestricted funds		 2021
£
100
38,714
257,469
296,283
(52,594)		 £
409,666
243,689
653,355
29,514
623,841
653,355		 2020
£
300
29,086
215,745
245,131
(81,704)		 £
432,074
163,427
595,501
16,135
579,366
595,501

The financial statements were approved by the Members Of The PCC on 25 April 2022

Rev Mark Melluish Trustee

Vicky Read Trustee

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
22
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of investments
Investment income received
Net cash (used in)/generated from
investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(11,175)
-
89		 £
52,810
(11,086)
-
41,724
215,745
257,469		 2020
£
(22,881)
30,000
16		 £
80,803
7,135
-
87,938
127,807
215,745

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

The Parochial Church Council of the Ecclesiastical Parish of St Paul's Ealing is an unincorporated Charity registered with the Charity commission in England and Wales (number 1132598); its principle address is detailed within the legal and administration section of the trustees report.

1.1 Accounting convention

The accounts have been prepared in accordance with the PCC's Powers Measures (1956) as amended, the Church Representation Rules, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The PCC is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The financial statements are prepared in sterling , which is the functional currency of the PCC . Monetary a mounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the accounts, the Members of the PCC have a reasonable expectation that the PCC has adequate resources to continue in operational existence for the foreseeable future. Thus the PCC continues to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Members of the PCC in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the PCC is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the PCC has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the PCC has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Grants and donations are accounted for when paid away.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Consecrated and beneficed property is excluded from the accounts.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold buildings 2% p.a. on cost of buildings and improvements Equipment 25% p.a. on net book value Fixtures and fittings 10% p.a. on cost Motor vehicles 25% p.a. on net book value

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Investments

Investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/ (expenditure) for the year . Transaction costs are expensed as incurred.

1.8 Stocks

Stock is valued at the lower of cost and net realisable value.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method.

1.11 Retirement benefits

The church operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

1.12 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the PCC’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
597,290
47,162
Furlough scheme grants
2,583
-
599,873
47,162
Donations and gifts
Standing orders and
other regular giving
491,667
20,713
Collections at all
services
6,142
22,921
Gift aid recoverable
99,481
3,528
Other
-
-
597,290
47,162		 TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
644,452
621,959
10,012
2,583
18,809
-
647,035
640,768
10,012
512,380
505,013
3,414
29,063
5,634
6,598
103,009
110,448
-
-
864
-
644,452
621,959
10,012		 Total
2020
£
631,971
18,809
650,780
508,427
12,232
110,448
864
631,971

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

4 Charitable activities

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Youth events 118 3,466
Wholeness ministry 1,738 2,910
Language school 750 2,210
Woman's ministry and Men's ministry 1,126 -
Senior group - 158
Great and small 1,572 749
Other income 3,086 1,880
8,390 11,373
5 Investments
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Interest receivable 89
16
6 Other income
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Bookstall income 4,296
1,502
Hall Hire income 39,701
24,548
Rental income 64,652
71,975
108,649
98,025

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Publicity costs
Staging fundraising events 3,244 2,582
3,244 2,582

8 Charitable activities

Outreach
activities
Youth
activities
Other
activities
Donations
paid
2021
2021
2021
2021
£
£
£
£
Staff costs
37,361
2,220
102,123
-
Depreciation and
impairment
9,907
504
23,172
-
Direct costs
23,692
1,612
131,750
-
70,960
4,336
257,045
-
Grant funding of activities
(see note 9)
-
-
-
177,371
Share of support costs
(see note 10)
52,299
13,535
122,329
-
Share of governance costs
(see note 10)
1,531
78
3,581
-
124,790
17,949
382,955
177,371
Analysis by fund
Unrestricted funds
124,587
17,949
382,955
143,791
Restricted funds
203
-
-
33,580
124,790
17,949
382,955
177,371		 Total
2021
£
141,704
33,583
157,054
332,341
177,371
188,163
5,190
703,065
669,282
33,783
703,065		 Total
2020
£
160,918
36,471
150,565
347,954
125,951
204,298
5,220
683,423
665,220
18,203
683,423

Staff costs are allocated to the charitable activities on the basis of time allocation within the accounting period as identified. This is currently 56% to direct costs and 44% to support costs. The support and governance costs basis of allocation has been set out in note 10 of the accounts.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 Charitable activities (Continued)

For the year ended 31 December 2020

Outreach
activities
Youth
activities
Other
activities
Donations
paid
£
£
£
£
Staff costs
47,471
2,414
111,033
-
Depreciation and impairment
10,759
547
25,165
-
Direct costs
21,221
4,327
125,017
-
79,451
7,288
261,215
-
Grant funding of activities (see note 9)
-
-
-
125,951
Share of support costs (see note 10)
57,285
12,993
134,020
-
Share of governance costs (see note
10)
1,540
78
3,602
-
138,276
20,359
398,837
125,951
Analysis by fund
Unrestricted funds
137,930
20,359
398,837
108,094
Restricted funds
346
-
-
17,857
138,276
20,359
398,837
125,951		 Total
2020
£
160,918
36,471
150,565
347,954
125,951
204,298
5,220
683,423
665,220
18,203
683,423

Staff costs are allocated to the charitable activities on the basis of time allocation within the accounting period as identified. This is currently 56% to direct costs and 44% to support costs. The support and governance costs basis of allocation has been set out in note 10 of the accounts.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Grants payable

Grants to institutions (202 grants):
West London Community Trust
Bihar
Redtribe
India appeal
Grove mission funding
Open doors
St Mellitus
Tearfund
Housing for Women
Power the fight
St John's Greenhill
Soul in Ealing
Oasis Church
Sozo Foundation
Ealing Foodbank
Other
Grants to individuals (6 grants)
Support costs
Support
costs
Governance
costs
£
£
Staff costs
116,289
-
Premises expenses
45,469
-
Administrative expenses
26,405
-
Audit fees
-
5,190
188,163
5,190		 2021
£
71,219
20,262
9,653
6,500
7,500
6,654
5,000
4,700
4,654
4,654
4,000
3,000
3,000
2,500
1,500
7,575
162,371
15,000
177,371
2021
£
116,289
45,469
26,405
5,190
193,353		 2020
£
48,120
7,094
11,555
-
7,500
-
1,000
3,000
-
-
-
750
-
2,500
1,500
27,932
110,951
15,000
125,951
2020
£
126,435
48,003
29,860
5,220
209,518

10 Support costs

Support and governance costs are allocated to the charitable activities on the basis of activity allocation within the accounting period as identified. This is currently 29.5% to Outreach activities, 1.5% to Youth activities and 69% to Other activities. The exception to this is support costs wholly incurred in respect of a charitable activity, where the full cost is allocated to the relevant activity.

Governance costs includes payments to the auditor of £5,190 (2020 - £4,710) for audit and accountancy fees.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

11 Members Of The PCC

Five of the Members of the PCC received remuneration during the year on normal terms for church work. Normal expenses incurred on church activities were reimbursed to clergy and church workers.

12 Employees

The average monthly number of persons employed by the charity during the year was:

Pastoral, evangelism, etc.
Administration
Premises
Cleaning
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
7
4
1
1
13
2021
£
228,977
12,870
16,146
257,993		 2020
Number
7
4
1
1
13
2020
£
255,211
14,630
17,512
287,353

There were no employees whose annual remuneration was £60,000 or more.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13
Tangible fixed assets
Equipment
Fixtures and
fittings
Motor vehicles
£
£
£
£
Cost
At 1 January 2021
468,672
152,323
217,631
9,949
Additions
808
1,757
8,610
-
At 31 December 2021
469,480
154,080
226,241
9,949
Depreciation and impairment
At 1 January 2021
166,589
130,766
113,393
5,752
Depreciation charged in the year
9,128
5,101
18,306
1,049
At 31 December 2021
175,717
135,867
131,699
6,801
Carrying amount
At 31 December 2021
293,763
18,213
94,542
3,148
At 31 December 2020
302,083
21,557
104,237
4,197
14
Stocks
2021
£
Bookstall stock
100
15
Debtors
2021
Amounts falling due within one year:
£
Other debtors
3,725
Prepayments and accrued income
34,989
38,714
16
Creditors: amounts falling due within one year
2021
£
Trade creditors
1,298
Other creditors
44,426
Accruals and deferred income
6,870
52,594		 Total
£
848,575
11,175
859,750
416,500
33,584
450,084
409,666
432,074
2020
£
300
2020
£
4,625
24,461
29,086
2020
£
1,212
73,086
7,406
81,704

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

17 Retirement benefit schemes

Defined contribution schemes

The c harity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the income and expenditure account in respect of defined contribution schemes was £16,146 (2020 - £17,511).

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Balance at
1 January 2020 resources expended 1 January 2021 resources expended 31 December
2021
£ £ £ £ £ £ £ £
Missions and UK charities 18,752 9,755 (17,995) - 10,512 40,621 (27,283)
23,850
Outreach activities 58 150 (208) - - 148 - 148
Other church activities 6,697 107 - (1,181)
5,623		 6,393 (6,500)
5,516
25,507 10,012 (18,203) (1,181)
16,135		 47,162 (33,783)
29,514

Missions and UK Charities - For payments to mission activities supported by the PCC and donations to UK and overseas charities.

Other Church Activities - For activities relating to general support and maintenance of the church.

Outreach Activities - For supporting activities in the local community.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:
Tangible assets
409,666
-
Current assets/
(liabilities)
214,175
29,514
623,841
29,514		 TotalUnrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
409,666
432,074
-
243,689
147,292
16,135
653,355
579,366
16,135		 Total
2020
£
432,074
163,427
595,501

20 Operating leases

Lessor

The operating leases represent leases of land and buildings to third parties.

At the reporting end date the PCC had contracted with tenants for the following minimum lease payments:

Within one year
Between two and five years		 2021
£
35,000
43,750
78,750		 2020
£
35,000
78,750
113,750

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

21 Related party transactions

During the year the following trustees were directors or members of related entities or were connected to people or organisations in receipt of payments from St Paul's PCC:

Trustee Related Party

M Melluish Mrs L Melluish (wife) - also an employee, all costs incurred were within role as Co-pastor St Paul's Community Play-School RedTribe V Read West London Community Trust RedTribe S Richardson West London Community Trust

During the year the following related entities had amounts either made to them or amounts owed to or by them with St Paul's PCC:

West London Community Trust - Grant payments made during the year with a total of £71,219 (2020 - £48,120); these include donations made to them from St Paul's PCC for the costs of the mortgages for properties held in West London Community Trust.

RedTribe - Grant payments made during the year with a total of £9,653 (2020 - £11,555); this grant was given to support the work of RedTribe among the Maasai in Kenya, including schooling, community health clinic, water projects and beadwork..

Remuneration of key management personnel

The remuneration of key management personnel, who are also PCC Members, is as follows:

2021 2020
£ £
Aggregate compensation 95,866 126,255

During 2021 the following key management personnel were members or connected to members of the PCC: Mr M Melluish (member) Mrs L Melluish (member), Mr S Richardson (member), Rev C Fox (member) and Mrs V Read (member). All these people were working full time or part time for the charity at some point during 2020. The cost of the Clergy are accounted for in the payments to the London Diocese. Part of this fund pays the stipend of the vicar. As is standard practice within the Church of England, the vicar receives either housing or housing benefit.

Aggregated donations received from the trustees or related parties without conditions were £44,531 (2020 - £64,225).

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST PAUL'S EALING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

22 Cash generated from operations 2021 2020
£ £
Surplus for the year 57,854 74,189
Adjustments for:
Investment income recognised in statement of financial activities (89) (16)
Depreciation and impairment of tangible fixed assets 33,583 36,471
Movements in working capital:
Decrease in stocks 200 -
(Increase)/decrease in debtors (9,628) 18,286
(Decrease) in creditors (29,110) (48,127)
Cash generated from operations 52,810 80,803