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2021-12-31-accounts

TRUSTEES’ ANNUAL REPORT

AND

FINANCIAL STATEMENTS

for the year ended 31 December 2021

Registered Charity Number 1132854

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

INDEX TO 2021 TRUSTEES’ANNUAL REPORT AND FINANCIAL STATEMENTS

Page(s)

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021

The Parochial Church Council of the Ecclesiastical Parish of St Nicholas, Sevenoaks (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 Church Accounting Regulations 2006, the Charities Act 2011 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Objectives and activities

The PCC has the responsibility of co-operating with the incumbent, the Revd Angus MacLeay, in promoting the whole mission of the Church, pastoral, evangelistic, social and ecumenical, in the ecclesiastical parish and beyond.

The PCC, with the St Nicholas Church family has adopted the following Vision Statement to express its objectives, help guide its decision-making and allocate resources to activities which will support and help to fulfil its objectives.

ST NICHOLAS’ VISION STATEMENT

To know Jesus and make Him known locally and globally and so we prayerfully and lovingly proclaim Him in order to Reach, Nurture, Equip & Send for His glory.

Based on this vision statement, the main objectives for the year were to bring glory to God by ensuring that His word continued to be faithfully preached to all congregations at St Nicholas Church; to help members of the Church family grow in Christian knowledge and maturity; to provide teaching in God’s word to the children and young people in the Church family; to reach out to the wider community in Sevenoaks, in the nation and around the world to proclaim the Gospel of our Lord Jesus Christ and to provide practical support demonstrating our love for our neighbours near and far.

The specific activities carried out in 2021 in pursuit of these objectives are described in the Annual Report which accompanies these financial statements and are also published on our website. These activities involve members of our staff team and the voluntary contribution of time, amounting to several hundred hours per week, by many members of the Church family in teaching, provision of pastoral care and a very wide range of other supporting activities.

The Church’s policies for grant-making are implemented by the Mission committee. The committee meets regularly during the year to allocate gifts made to the mission fund to support missionaries, mission and relief agencies both in the UK and worldwide.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

Achievements and Performance

Church attendance

As at 31 December 2021 there were 583 on the Electoral Roll (2020: 556). The roll was renewed in April 2019. The estimated average attendance on a ‘normal’ Sunday for all congregations is usually based on counts made on the first three Sundays in October. However, due to the pandemic, many of our usual attendees – and many visitors - tuned in online rather than being physically in the buildings. Our evening service was only online, therefore the comparative figures are not available.

The Church and Undercroft

Pre-COVID-19 the Church and Undercroft, which houses our book room as well as a suite of meeting rooms, were used extensively each day and most evenings by a mixture of Church events and public bookings. During the pandemic, the usage of these facilities dropped but usage is now increasing.

Young People’s Work

In addition to our Sunday groups, there are a number of weekday events for children and young people – most of these group met again in person towards the end of 2021.

Mission and Evangelism

Mission activity is at the heart of St Nicholas. We provide significant support to a number of mission partners including many who have gone out from our Church family. These include individuals and families serving in South Africa, Uganda, Thailand, Malaysia, Hungary, Ireland and Italy – these are detailed in Note 17 to the Accounts.

Financial Review

Funds held by St Nicholas PCC

The Church's operations and activities are separated into funds that are either restricted (with limitations as to how income can be spent) or unrestricted (the PCC has discretion with respect to expenditure).

Unrestricted Funds:

The General Fund (GF) is used for the day to day running of the Church. This includes collecting donations earmarked for general use, and the payment of all salaries and general running expenses. This is the main operating entity of the Church.

The Fabric Fund is a savings reserve for large scale capital improvements and quinquennial expenditure for the St Nicholas Church building and grounds. It receives transfers from the GF, usually on an annual basis and incurs expenditure as needs arise.

The Vision Fund this is a new fund set up with the specific aim of Reaching, Nurturing, Equipping & Sending God’s people to proclaim the gospel for His glory.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

The Strategic Fund is used to enable the PCC to take on new opportunities ahead of building a new income stream to sustain them.

Restricted Funds:

Associate Rector House Fund (ARH). This fund was established in 2010 with the sole purpose of collecting gifts for the purchase of a house and for the payment of costs associated with the purchase of such a property. It has received regular income and received the proceeds from the St Nicholas Parish Hall Trust (PHT). Having sold the property held in the ‘Associate Rector’s House Fund’ during 2021, part of the proceeds of sale were used to buy 12 Hurst Way with the remaining funds held in cash. Following questions concerning whether the fund is correctly classified as restricted, so that property held in the fund is available solely for occupation by an Associate Rector of St. Nicholas, the PCC received legal advice confirming that the fund is so restricted. It is proposed that the PCC will consult with the Charity Commission regarding the future use of the fund while respecting its restricted status.

Mission Fund (MF). This fund collects all donations earmarked for mission activity and allocates expenditure. Income can only be spent on mission activity and there are no operating overheads or ongoing financial commitments. Only income pledged or received in this fund is spent for these purposes.

Curate’s House Fund. This fund reflects the PCC’s interest in the Church’s house in South Park. The property is held in a custodial trust by the Diocese, all economic benefit will accrue to St Nicholas PCC.

The Endowment Fund has its own assets, and its income is used to fund the upkeep of the graves .

2021 Overview:

Unrestricted – General Fund

The voluntary income received in 2021, including gift aid and grants, was £973,408 (2020: £781,770).

Total resources used in the GF directly relating to work for the Church for 2021 were £1,008,145 (2020: £942,773). We are very thankful for all gifts large and small for the Gospel work of St Nicholas in Sevenoaks.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

2021 Overview (continued)

Unrestricted - The Fabric Fund

£25,701 was spent on works required by the 2021 quinquennial report and included painting of the aisles within the Church. A transfer of £150,000 was made to the fund leaving a balance of £224,299 (2020: £100,000) to pay for further works required by the 2021 quinquennial report which includes replacement of the south aisle roof.

Unrestricted - Strategic Reserve

There was no movement in the fund in the year and the balance remains at £100,000 (2020: £100,000)

Unrestricted – Vision Fund

£120,000 was transferred to this fund in the year which is expected to be spent on the aims as defined on page 2 and potentially used for setting up a new Church plant over the coming years.

Restricted - Associate Rector House Fund (ARH)

In 2020 the house at 26 Woodside Road (26 WSR) was sold for £1,192,500 and the net proceeds were returned to the Fund. In 2021 £551,000 was used to purchase a new property at 12 Hurst Way (12 HW). The fund reimbursed £72,770 to the General Fund for previous expenditure incurred at 26 WSR. The fund holds the purchase price of 12 HW and cash reserves, some of which will be used to refurbish and maintain 12 HW.

Restricted – Mission Fund

The amount that was distributed to our mission partners in 2021 was £211,312 (2020: £190,903). The amount is for the continuing support of individuals and societies to whom we have supported for several years. A list of these grants is shown on page 31 of the accounts.

Restricted - Endowment

The investments in this fund are all part of the General, Churchyard and Graves endowment. This is a restricted fund where money has been given to the Church with the specific instructions that only the income earned from the money can be spent. They are permanent endowments which require income to be spent on the Churchyard, graves, or the general purposes of the PCC. The income and expenditure in 2021 was £1,208. (2020 £1,341)

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

The Year Ahead

General Fund

The key challenge for the Church family and leadership is to continue to broaden and increase our giving and time resources as we pursue our vision to know Jesus and make Him known locally and globally, in order to Reach, Nurture, Equip & Send for His glory.

Mission Fund

The Mission Fund has always been grateful for the provision of funds to support our mission expenditure. We prayerfully trust that God will meet the needs in the coming year through the generous giving of the Church family. During the year the Shepherds started language training in Paris preparing for appointments in West Africa and Hannah Jackson started her posting in Tanzania. Kathryn Bowen returned to the UK for Home Assignment. StJohn Perry took up a role ministering to the Indonesian and Malaysian diaspora in the UK and Ellie Perry retired from OMF.

Reserves Policy

The Reserves Policy is to maintain a level of reserves in the General Fund and the Mission Fund equivalent to three months’ normal expenditure. Following the sale of Beech Road in 2020 for £410,000 reserves in the general fund increased above the three-month normal expenditure amount. The PCC have therefore transferred an extra £100,000 to the Fabric Reserve to bring forward the replacement of the south aisle roof and also set up a Vision Fund with an initial transfer of £120,000 to be used during the next few years. On behalf of the PCC, the FSG will continue to monitor cash reserves and will review the reserves policy in 2022.

Statement of the Responsibilities of the Trustees of the Parochial Church Council

The Trustees of the PCC are responsible for preparing the report of the PCC and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees of the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of that charity for that period. In preparing these financial statements the Trustees are required to: a) Select suitable accounting policies and then apply them consistently; b) Observe the methods and principles in the Charities SORP;

c) Make judgements and accounting estimates that are reasonable and prudent; d) State whether applicable Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

e) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Church will continue in operation.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

The Trustees of the PCC are responsible for maintaining proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Church, and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

So far as the Trustees of the PCC are aware:

Risk Policies

Throughout the year the PCC, through the work of its committees – particularly the Risk Management Committee - the Churchwardens and designated members of the staff team continued with their systematic risk assessment in Financial, Reputational, Statutory/Legal, Environmental, People, IT and Operational areas, as required by the Diocese. Parish Safeguarding Officer, Emma Tibbitts, her Deputy Ros Collett and our Parish Lead Recruiter, Mrs Sue Stimson, have continued to ensure that we adhere to all relevant safeguarding legislation. Close attention is also paid to the implementation of policies regarding health and safety and to compliance with disability discrimination legislation.

Staff Changes

In July 2021 our new Curate, Rev Nic Ross, joined us at the start of a 3-4 year posting. In August, two of our Ministry Associates – Matthew & Jemimah White - moved to Scotland having completed their year of service and training and in November Hannah Jackson moved to Tanzania to serve there with AIM.

After 40 years in full time ministry, Rev Gavin McGrath retired in October and Rev Jamie Read joined us as a new Congregational Pastor.

Changes also took place in the Support Staff with Susan Clarke & Carla Du Preez joining the office team and Abby Chilton taking on the new role of Communications and Content Designer.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

Post year end matters

The principal risk in 2021 has been the continued dealing with the Covid 19 pandemic. This has meant streaming services and other activities; some members of the Church family have had their employment affected, which might impact financial giving in 2022. Furthermore, inflation has increased by nearly 5% in the year and has continued to increase during the first few months of 2022, so costs are expected to increase above the budget set for 2022. The reserves position however, remains very strong. The Trustees will continue to monitor the impact of the pandemic and other world events on the finances of the PCC by reviewing the costs and cash flow forecasts on a regular basis to ensure liabilities can be met for the foreseeable future.

Key challenge for the year ahead

Managing and approving costs will be an important task during the year as costs are expected to exceed the budget set for 2022 due to increasing inflationary pressures. Further, a clear plan with a supporting cost schedule needs to be written and approved for the Vision Fund.

Structure, Governance and Management

Registered Charity

The Parochial Church Council of the Ecclesiastical Parish of St Nicholas, Sevenoaks was registered on 21 November 2009 with the Charity Commission, number 1132854.

Location

St Nicholas Church is situated at Rectory Lane, Sevenoaks. It is part of the Diocese of Rochester within the Church of England. The correspondence address is St Nicholas Church, Rectory Lane, Sevenoaks, Kent, TN13 1JA. The activities of the Church take place principally at this location but also at other suitable venues in and around Sevenoaks.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

Membership

Members of the PCC are either ex officio or elected at the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. During the year the following served as members of the PCC:

Incumbent: The Revd Canon Angus MacLeay + Chairman Churchwardens: Mrs Christine Brindley Mr Justin Greig Clergy: The Revd Dr Gavin McGrath+ (to 4 October 2021) The Revd Matthew Taylor+ The Revd Nicholas Ross (Curate) (from July 2021) The Revd James Read + (from 4 October 2021) Representatives on the Deanery Synod: Mr Chris Barton Mr Andrew Coates Brig. Ian Dobbie * Mr Anthony Jennings Mrs Emma Osei-Mensah (to 4 October 2021) Mr Peter Scott Mr Gerald O’Brien Elected Members: Mr Mark Brennan (from 18 May 2021) Mrs Carol Carpenter Mr John Collett (Treasurer) Mr Stefano Duranti (from 18 May 2021) Mr Peter Harlow Mrs Isabel Hodgson Mr Adelbert Jennings (to 18 May 2021) Mrs Sarah Mackenzie Mrs Marion Russell (to 22 March 2021) Mr Ben Stone (to 18 May 2021) Mr Robert Von Kaufmann Mr Mark Walkington Invited attendees: Mr John Khnana Mrs Sue Stimson Key: # also a member of General Synod * also a representative of Diocesan Synod + also a representative of Deanery Synod PCC Secretary: Mrs Katie David (to Sept 2021) (not a member of the PCC)

The APCM was held on 18 May 2021.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

Auditor

Norman Cox & Ashby Chartered Accountants and Statutory Auditor Grosvenor Lodge 72 Grosvenor Road Tunbridge Wells Kent TN1 2AZ

Bankers

National Westminster Bank Plc 67 High Street Sevenoaks Kent TN13 1LA

Legal Advisors

Cripps 12 Mount Ephraim Road Tunbridge Wells Kent TN1 1EG

PCC

The PCC is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure 1956 as amended and the Church Representation Rules. The PCC was formerly an excepted charity and was registered as a charity from 21 November 2009. 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.

Recruitment induction and training of PCC members

Recruitment to membership of the PCC, whether by election or ‘ex officio’ appointment, is carried out in accordance with the Church Representation Rules. New PCC members receive induction training to ensure they are aware of their responsibilities. The Churchwardens, and others with specific responsibilities for matters requiring specialist knowledge, are able to attend training courses offered by the Diocese or appropriate external bodies. Reading matter on relevant topics is disseminated to PCC members.

Committees

The PCC operates through several committees, listed below, which meet between full meetings of the PCC, under an approved Scheme of Delegation which with the terms of reference for each committee lays down their responsibilities and authority.

Standing Committee

(This committee is the only committee required by law. It has power to transact the business of the PCC between its meetings, subject to any directions given by the Council).

Leadership Team Finance Strategy Group Buildings & Maintenance Committee Mission Committee Employment and Remuneration Committee Fellowship Fund Committee Risk Management Committee

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)

Public Benefit

The PCC is aware of its legal duty to have regard to the public benefit guidance and to report on the charity's compliance with the public benefit obligation. In this regard the PCC is totally committed to enable anyone to worship at St Nicholas’ services together with any of our activities taking place throughout the week. Our services and worship seek to encourage members of the Church family to live out their faith as part of the local community and further afield. We seek to achieve this through worship, prayer and the faithful teaching from God's word to support in people learning about the Gospel, coming to faith in the Lord Jesus Christ and growing in their knowledge of scripture. With this aim the PCC has adopted the objectives and activities as noted on page 1 of this report.

Approved by the Parochial Church Council on 4[th] May 2022 and signed on its behalf by:

Revd Canon Angus MacLeay Chairman

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

SUMMARY INCOME AND EXPENDITURE ACCOUNT
for the year ended 31 December 2021
TOTAL INCOME (on continuing operations)
TOTAL EXPENDITURE (on continuing operations)
NET INCOME for the year
STATEMENT OF RECOGNISED GAINS AND LOSSES
for the year ended 31 December 2021
Net income for the year
Gain on revaluation of:
- Tangible fixed assets
- Investments assets
Total recognised gain relating to the year
SPLIT OF NET (EXPENDITURE) / INCOME BY FUND
(before revaluations and transfers between funds)
Unrestricted Funds
General Fund
Fabric Fund
Restricted Funds
Mission Fund
Associate Rector's House Fund
Total for all funds		 2021
2020
£
£
1,226,566
1,268,777
1,224,508
1,184,220
2,058
84,557
2021
2020
£
£
2,058
84,557
-
75,000
5,955
2,767
8,013
162,324
2021
2020
£
£
39,971
(106,840)
(25,701)
(50,000)
14,270
(156,840)
(9,361)
10,308
(2,851)
231,089
(12,212)
241,397
2,058
84,557

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS For the year ended 31 December 2021

Opinion

We have audited the financial statements of The Parochial Church Council of the Ecclesiastical Parish of St. Nicholas, Sevenoaks, (the “Charity”) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard FRS 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 of Opinion

We have been appointed auditors under section 152 of the Charities Act 2011 and report in accordance with regulations made under that Act.

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 Charity 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

We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the charity to cease to continue to trade as a going concern.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS For the year ended 31 December 2021 (continued)

In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the charity’s business model including effects arising from macroeconomic uncertainties such as Brexit and Covid-19, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period.

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 charity’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.

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

The responsibilities of the trustees with respect to going concern are described in the ‘Responsibilities of trustees for the financial statements’ section of this report.

Other Information

The trustees are responsible for the other information.

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS For the year ended 31 December 2021 (continued)

Matters on which we are required to Report by Exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees of the Parochial Church Council

As explained more fully in the trustees Responsibilities Statement set out on page 5, the trustees 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS For the year ended 31 December 2021 (continued)

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned in accordance with the ISAs (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the charity, and the industry in which they operate and determined which may influence the financial statements. The charity is subject to many laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements.

We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur; financial reporting legislation (Charities SORP and UK GAAP (FRS 102)), the Finance Act 2020 (specifically related to the Coronavirus Job Retention Scheme), health and safety requirements and data protection.

We understood how the charity is complying with those legal and regulatory frameworks by making enquiries of management and those charged with governance. We corroborated our enquiries through our review of board minutes and a search of the Charities Commission.

We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur email exchanges with management.

Our audit work also assessed the risks of material misstatement in respect of fraud as follows.

Enquiries were made with trustees and management and verification was sought with third parties. Our analytical review procedures were geared towards identifying any unusual or unexpected relationships and variances (taking account of the inevitable variations caused by the pandemic) and we conducted our audit to identify transactions outside the normal course of business. No unusual transactions were identified. Our audit work reviewed the segregation of duties and ensured that those charged with governance were aware of and accept all matters arising under Ethical Standards. We considered the possibility of management override and carried out tests on journal entries posted and reviewed those relating to estimates or unusual transactions. Discussed the assumptions and judgements made by management.

Reviewing the correspondence supplied by the Church of England Pensions Board to ensure compliance with legislation.

Obtained title deeds and reviewed supporting documentation relating to the addition of tangible fixed assets.

Ensuring that the charity was complying with regulatory solvency requirements.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS For the year ended 31 December 2021 (continued)

Consideration of the potential for fraud in revenue recognition, including claims. Identifying and testing related party transactions.

We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We did not identify any matters relating to non-compliance with laws and regulation or relating to fraud.

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 auditor’s 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 GOWER-SMITH FCA (Senior Statutory Auditor) for and on behalf of NORMAN COX & ASHBY Chartered Accountants and Statutory Auditor

Grosvenor Lodge 72 Grosvenor Road Tunbridge Wells Kent TN1 2AZ

4[th] May 2022

Norman Cox & Ashby is eligible to act as an auditor in the terms of section 1212 of the Companies Act 2006.

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THE PAROCHIAL CHURCH COUNCIL OF

THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2021

INCOME
Voluntary income
Activities for generating funds
Income from investments and deposits
Income from church activities
Other income
TOTAL INCOME
EXPENDITURE
Church activities
Missionary and charitable giving
Directly relating to the work of the church
Fund-raising trading costs
Other expenditure
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE INVESTMENT GAINS/(LOSS)
NET GAIN ON INVESTMENT
Investment Assets
NET INCOME/(EXPENDITURE)
OTHER RECOGNISED GAINS
Revaluation of Tangible Fixed Assets
TRANSFER BETWEEN FUNDS
NET MOVEMENT IN FUNDS
TOTAL FUNDS BROUGHT FORWARD
TOTAL FUNDS CARRIED FORWARD
AT 31 DECEMBER 2021		 Unrestricted
Restricted Endowment Total funds
Total funds
funds
funds
funds
2021
2020
Note
£
£
£
£
£
2(a)
973,408
202,277
-
1,175,685
988,818
2(b)
12,126
-

-
12,126
11,562
2(c)
341
666

1,208
2,215
3,665
2(d)
35,309
-

-
35,309
25,981
2(e)
1,231
-

-
1,231
238,751
1,022,415
202,943
1,208
1,226,566
1,268,777
3(a)
15,640
211,312
-
226,952
200,036
3(b)
979,524
3,843
1,208
984,575
918,225
3(c)
12,981
-
-
12,981
21,844
3(d)
-
-
-
44,115
1,008,145
215,155
1,208
1,224,508
1,184,220
14,270
(12,212)
-
2,058
84,557
6
-
-
5,955
5,955
2,767
14,270
(12,212)
5,955
8,013
87,324
-
-
-

-
75,000
14
72,770
(72,770)
-
-
-
87,040
(84,982)
5,955
8,013
162,324
828,366
1,820,638
41,631
2,690,635
2,528,311
16
915,406
1,735,656
47,586
2,698,648
2,690,635		 Unrestricted
Restricted Endowment Total funds
Total funds
funds
funds
funds
2021
2020
Note
£
£
£
£
£
2(a)
973,408
202,277
-
1,175,685
988,818
2(b)
12,126
-

-
12,126
11,562
2(c)
341
666

1,208
2,215
3,665
2(d)
35,309
-

-
35,309
25,981
2(e)
1,231
-

-
1,231
238,751
1,022,415
202,943
1,208
1,226,566
1,268,777
3(a)
15,640
211,312
-
226,952
200,036
3(b)
979,524
3,843
1,208
984,575
918,225
3(c)
12,981
-
-
12,981
21,844
3(d)
-
-
-
44,115
1,008,145
215,155
1,208
1,224,508
1,184,220
14,270
(12,212)
-
2,058
84,557
6
-
-
5,955
5,955
2,767
14,270
(12,212)
5,955
8,013
87,324
-
-
-

-
75,000
14
72,770
(72,770)
-
-
-
87,040
(84,982)
5,955
8,013
162,324
828,366
1,820,638
41,631
2,690,635
2,528,311
16
915,406
1,735,656
47,586
2,698,648
2,690,635
14,270
(12,212)
-
2,058
84,557
-
-
5,955
5,955
2,767
14,270
(12,212)
5,955
8,013
87,324
-
-
-

-
75,000
72,770
(72,770)
-
-
-
87,040
(84,982)
5,955
8,013
162,324
828,366
1,820,638
41,631
2,690,635
2,528,311
915,406
1,735,656
47,586
2,698,648
2,690,635

17

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

BALANCE SHEET as at 31 December 2021

FIXED ASSETS
Tangible Assets
Investments
CURRENT ASSETS
Stock
Debtors
Short term deposits
Bank balances and cash
LIABILITIES
Creditors- Amount falling due within one year
NET CURRENT ASSETS
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY
Unrestricted
Restricted
Endowment		 Notes
£
£
£
£
7
1,256,714
708,571
6
47,586
41,631
1,304,300
750,202
8
7,819
9,563
9
64,660
55,885
10
358,809
358,809
10
1,243,069
1,694,885
1,674,357
2,119,142
11
(280,009)
(178,709)
1,394,348
1,940,433
2,698,648
2,690,635
13
915,406
828,366
14
1,735,656
1,820,638
15
47,586
41,631
2,698,648
2,690,635
2021
2020		 Notes
£
£
£
£
7
1,256,714
708,571
6
47,586
41,631
1,304,300
750,202
8
7,819
9,563
9
64,660
55,885
10
358,809
358,809
10
1,243,069
1,694,885
1,674,357
2,119,142
11
(280,009)
(178,709)
1,394,348
1,940,433
2,698,648
2,690,635
13
915,406
828,366
14
1,735,656
1,820,638
15
47,586
41,631
2,698,648
2,690,635
2021
2020
7
6
8
9
10
10
11
13
14
15

Approved by the Parochial Church Council on 4[th] May 2022 and signed on its behalf by:

………………………………………………..

John Collett Treasurer

Chairman, Parochial Church Council

18

THE PAROCHIAL CHURCH COUNCIL OF

THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

CASH FLOW STATEMENT as at 31 December 2021

Cash generated from operations
Investing activities:
Interest received
Interest paid
Repayment of loans
Fixed Assets Additions
Proceeds on sale of fixed assets
Net cash (absorbed)/generated from investing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash at Bank and in Hand
Short term deposits
Cash generated from operations:
Net Movement in Funds during the year
Adjustments for:
Fair value (gain) on investments
Revaluation of Tangible Fixed Assets
Profit on disposal of Tangible Fixed Assets
Depreciation
Finance costs
Interest received
Movement in working capital:
Decrease in stocks
(Increase)/decrease in debtors
Increase in creditors		 2021
2020
£
£
96,992
27,389
2,215
3,665
(23)
(5,068)
-
(125,986)
(551,000)
(11,428)
-
1,580,897
(548,808)
1,442,080
(451,816)
1,469,469
2,053,694
584,225
1,601,878
2,053,694
1,243,069
1,694,885
358,809
358,809
1,601,878
2,053,694
8,013
162,324
(5,955)
(2,767)
-
(75,000)
(185,897)
2,857
2,857
23
5,068
(2,215)
(3,665)
1,744
7,463
(8,775)
52,831
101,300
64,175
96,992
27,389

19

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021

1. ACCOUNTING POLICIES

a. Basis of Preparation and Assessment of Going Concern

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 affiliation to another body, nor those which are informal gatherings of Church members.

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

The members of the PCC consider that there are no material uncertainties about the Church’s ability to continue as a going concern.

b. Funds

Unrestricted funds (see note 13) represent the 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. These include funds designated for a particular purpose by the PCC and are:

20

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)

Restricted funds (see note 14) represent sums which have been restricted by the donor for a particular purpose. Restricted funds are:

c. Income recognition

All income is recognised once the charity has entitlement to the income, there is sufficient certainty or receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations are recognised when they have been communicated or received in writing with notification of both the amount and settlement date. Income tax recoverable on Gift Aid donations is recognised when claimable.

Legacy gifts are recognised on a case-by-case basis following the granting of probate when the administrator or executor of the estate has communicated in writing both the amount and settlement date.

Interest on funds held on deposit is included upon notification of the interest paid into the bank.

Rental income from the letting of Church premises is accounted for when earned. Parochial fees due to the PCC for weddings, funerals, and other events are accounted for on an event-by-event basis. Sales of books and magazines from the Church bookstall are accounted for at point of sale.

Grants receivable are recognised when received.

21

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

d. Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Church to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Church. In the case of an unconditional grant offer, this is accrued once approved. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued for when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are outside of the control of the Church. The expenditure on charitable activities includes supporting mission and mission-related activity, mainly outside the parish, allocated at the discretion of the Mission Committee.

Costs directly relating to the work of the Church are for promoting the primary object, the promotion of the Gospel of Our Lord Jesus Christ, mainly within Sevenoaks. The Diocesan Quota or Parish Share is accounted for when payable, the amount being determined by the PCC.

The fund-raising trading costs consist of resources used to fund the bookstall.

e. Tangible Fixed assets and depreciation

i. Consecrated land and buildings and movable Church furnishings.

Consecrated and beneficed property is excluded from the accounts by section 10(2) to (4) of the Charities Act 2011.

No value is placed on moveable Church furnishings held by the Churchwardens on special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property. All expenditure incurred during the year on consecrated or beneficed buildings and moveable Church furnishings whether on maintenance or improvement is written off as expenditure in the Statement of Financial Activities and separately disclosed.

22

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

ii. Other land and buildings.

Other land and buildings held on behalf of the PCC for its own purposes are included at market value. Properties are generally revalued professionally every 5 years. The last professional valuation was conducted on 25 February 2021. Gains and losses are included in the Statement of Financial Activities. Depreciation on properties has not been provided for in these accounts as any charge is considered not to be material, on the basis that the asset either has a very long useful life, or a residual value based on its current value, which is not materially different from its carrying value.

iii. Fixtures, fittings and office equipment.

Equipment used within the Church premises is depreciated on a straight-line basis over 4 years. Individual items of equipment with a purchase price of less than £2,000 are written off in the period in which the asset is acquired.

iv. Impairment

Provision will be made should any annual impairment review of fixed assets indicate that a permanent diminution in value has occurred.

f. Fixed asset investments

Investments are initially recognised at transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

g. Realised and unrealised gains and losses

All gains and losses are taken to the statement of financial activities as they arise. Unrealised gains and losses are calculated as the difference between fair value at the year end and their carrying value.

h. Current assets

Amounts owing to the PCC as at 31 December 2021 in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncollectible. Short-term deposits include cash held on deposit either with CBF Church of England Funds, the Rochester Diocesan Board of Finance or at NatWest Bank.

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

23

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

i. Pensions policy

St Nicholas Church PCC participates in the Pension Builder Scheme section of CWPF for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers.

The Church Workers Pension Fund has a section known as Pension Builder 2014 as defined below.

Pension Builder 2014 Scheme

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, St Nicholas Church PCC could become responsible for paying a share of that employer’s pension liabilities.

St Nicholas PCC is also registered with OPRA and supports staff if they prefer to take out Stakeholder Pensions by matching any contributions to a maximum of 7.5% of salary and these are accounted for on the basis of contributions payable in the year. The PCC therefore has no liability for final pensions provision for its staff.

24

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

j. Deferred income

Income received for a future year will be included as an incoming resource in the year to which it relates.

k. Contingent liabilities

A contingent liability is identified and disclosed when either a possible but uncertain obligation, or a present obligation that is not recognised because a transfer of economic benefit to settle the possible obligation is not probable, or the amount of the obligation cannot be estimated reliably.

2. INCOME

Unrestricted Unrestricted Restricted funds Endowm't Total Total
funds Mission ARH funds 2021 2020
£ £ £ £ £ £
[a] Voluntary Income
Planned giving:
Gift Aid eligible donations 536,457 130,246 - - 666,703 583,255
Gift Aid receivable 133,481 32,580 - - 166,061 147,814
Other donations 283,378 38,851 120 - 322,349 238,316
Cash collections 2,592 480 - - 3,072 5,933
Grants 12,500 - - - 12,500 12,500
Legacies 5,000 - - - 5,000 1,000
973,408 202,157 120 - 1,175,685 988,818
[b] Activities for generating funds
Trading 12,126 - - - 12,126 11,562
[c] Income from investments
and deposits
Dividends and interest 341 56 610 1,208 2,215 3,665
[d] Income from church activities
Fees & hire income 27,820 - - - 27,820 14,343
Contributions to houseparties 6,270 - - - 6,270 735
Contributions to outreach events 1,219 - - - 1,219 10,903
35,309 - - - 35,309 25,981
[e] Other Income
Net gain on disposal of tangible asset - - - - - 230,012
Government Grants 1,231 - - - 1,231 8,739
1,231 - - - 1,231 238,751
TOTAL INCOME 1,022,415 202,213 730 1,208 1,226,566 1,268,777

25

THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

THE PAROCHIAL CHURCH COUNCIL OF

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

3. EXPENDITURE

(a) Church Activities
Missionary and charitable giving
Missionary societies (note 17)
Home missions/UK based agencies
Total Missionary and charitable
(b) Directly relating to the work
of the Church
Ministry
Diocesan Quota
Clergy expenses
Clergy housing
Ministers
Mortgage Interest
Support costs
Training
Apprentices
Pastoral Care
Church - running expenses
Church maintenance
Fabric repair
Fabric repair - car park
Furniture and fittings
Beech Road costs
Depreciation
Houseparties
Services & Outreach
Outreach events
Church plant
Salaries
Technical Support
Printing and stationery
Office expenses
Other expenditure
PCC costs
Audit fee
Bank charges
Professional fees
Other - sundry
Total directly relating to the
work of the Church
(c) Fund-raising trading costs
Trading purchases and costs
(d) Other expenditure
Net loss on disposal of tangible assets
TOTAL EXPENDITURE		 Unrestricted
Endowm't
funds
Mission
ARH
funds
2021
2020
£
£
£
£
£
£
-
211,312
-
-
211,312
190,903
15,640
-
-
-
15,640
9,133
Restricted funds
15,640
211,312
-
-
226,952
200,036
178,735
-
-
-
178,735
232,466
13,017
-
-
-
13,017
4,684
54,607
-
3,558
-
58,165
18,798
219,318
-
-
-
219,318
219,582
-
-
23
-
23
5,068
465,677
-
3,581
-
469,258
480,598
-
4,875
-
-
-
4,875
1,256
23,330
-
-
-
23,330
17,640
2,582
-
-
-
2,582
2,720
30,787
-
-
-
30,787
21,616
56,261
-
-
1,208
57,469
45,825
7,651
-
-
-
7,651
20,259
184,767
-
-
-
184,767
117,579
2,249
-
-
-
2,249
3,628
-
-
-
-
-
226
13,831
-
-
-
13,831
17,481
2,857
-

-
-
2,857
2,857
4,598
-
-
-
4,598
4,833
9,116
-

-
-
9,116
11,399
1,439
-
-
-
1,439
11,403
10,361
-
-
-
10,361
8,720
128,368
-
-
-
128,368
131,293
21,973
-
-
-
21,973
20,172
3,994
-
-
-
3,994
1,647
8,095
-

-
-
8,095
5,272
455,560
-

-
1,208
456,768
402,594
500
-
-
-
500
4,708
5,520
-
-
-
5,520
5,320
2,555
-
-
-
2,555
2,096
2,415
-
-
-
2,415
831
16,510
262
-
-
16,772
462
27,500
262
-
-
27,762
13,417
979,524
262
3,581
1,208
984,575
918,225
12,981
-
-
-
12,981
21,844
-
-
-
-
-
44,115
1,008,145
211,574
3,581
1,208
1,224,508
1,184,220

26

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)
2020
£
5,320
335,967
2020
£
297,773
23,106

4. NET MOVEMENT IN FUNDS
Stated after charging the following:
Audit Fees
Staff costs (see note 5)
5. STAFF COSTS
Salaries and Wages
Social Security costs
Pension costs
2021
£
5,520
329,484
2021
£
291,789
22,969
314,758
14,726
329,484
320,879
15,088
335,967

The average number of PCC employees during the year, calculated on a full-time equivalent basis, was 11 (2020: 11). No employee received emoluments in excess of £60,000.

6. INVESTMENTS
Market value:
At 1 January 2020
Gain on revaluation
At 1 January 2021
Gain on revaluation
At 31 December 2021		 Endowment
Funds
£
38,864
2,767
41,631
5,955
47,586

The historical cost of the investments is £1,394. All the investments are with the Central Board of Finance of the Church of England and are in the United Kingdom. These investments cannot be realised for the reasons stated in Note 1c.

27

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

7. TANGIBLE FIXED ASSETS

Cost or valuation:
At 1 January 2021
Additions during the year
At 31 December 2021
Depreciation:
At 1 January 2021
Charge for year
At 31 December 2021
Net book value:
At 31 December 2021
At 31 December 2020		 Freehold Land
Office
Fixtures and
Total
and Buildings
Equipment
Fittings
£
£
£
£
700,000
35,539
43,910
779,449
551,000
551,000
1,251,000
35,539
43,910
1,330,449
-
26,968
43,910
70,878
-
2,857
-
2,857
-
29,825
43,910
73,735
1,251,000
5,714
-
1,256,714
700,000
8,571
-
708,571

The freehold land and buildings at the year end comprise the Curate's house located at 40 South

Park, 23 Beech Road, which is held in trust by the Rector and Churchwardens for such purposes as The freehold land and buildings at the year end comprise a property located at 40 South Park the Rector and the PCC shall decide. 26 Woodside Road was purchased in March 2011 for £795,000 and a property at 12 Hurst Way. 12 Hurst Way was purchased on the 7 October 2021 for and is held in a restricted fund. All properties were revalued by Ibbett Mosely in Jan 2014 £551,000. The property at 40 South Park was valued at £700,000 on the 25th February 2021 by a RICS Registered Valuation Surveyor.

28

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

8. STOCK
Finished goods for resale		 2021
2020
£
£
7,819
9,563

Closing stock is valued at lower of cost or net realisable value (market value).

9. DEBTORS
Tax recoveries
Prepayments
Sundry debtors
10. BANK
Short term deposits
Bank balances and cash
11. LIABILITIES: AMOUNTS FALLING
DUE WITHIN ONE YEAR
Accruals
Sundry creditors		 Unrestricted
Restricted
2021
2020
funds
funds
Total
Total
£
£
£
£
46,904
9,648
56,552
43,240
8,108
-
8,108
-
-
-
-
12,645
55,012
9,648
64,660
55,885
Unrestricted
Restricted
2021
2020
funds
funds
Total
Total
£
£
£
£
308,809
50,000

358,809
358,809
818,061
425,008

1,243,069
1,694,885
1,126,870
475,008

1,601,878
2,053,694
Unrestricted
Restricted
2021
2020
funds
funds
Total
Total
£
£
£
£
280,009
-
280,009
155,778
-
-
-
22,931
280,009
-
280,009
178,709

12. OPERATING LEASE COMMITMENTS

At 31 December 2021, the company had total commitments under non-cancellable leases over the remaining life of those leases of £2,000 in respect of a UK premises.

29

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

13. UNRESTRICTED FUNDS Realised
01-Jan-21 Income Expenditure Transfers (loss) 31-Dec-21 31-Dec-20
£ £ £ £ £ £ £
General fund 628,366 1,022,415 (982,444) (197,230) - 471,107 628,366
Designated Funds
Fabric Fund 100,000 - (25,701) 150,000 - 224,299 100,000
Strategic Reserve 100,000 - - - 100,000 100,000
Vision Fund - - - 120,000 - 120,000 -
TOTAL **828,366 ** 1,022,415 (1,008,145) 72,770 - 915,406 828,366
14. RESTRICTED FUNDS Realised
01-Jan-21 Income Expenditure Transfers gain 31-Dec-21 31-Dec-20
£ £ £ £ £ £ £
Mission Fund 91,830 202,213 (211,574) - - 82,469 91,830
Curate's House Fund 700,000 - - - - 700,000 700,000
Associate Rector's House Fund 1,028,808 730 (3,581) (72,770) - 953,187 1,028,808
TOTAL 1,820,638 202,943 (215,155) (72,770) **- ** **1,735,656 ** 1,820,638
15. ENDOWMENT FUNDS Unrealised
01-Jan-21 Income Expenditure Transfers gains 31-Dec-21 31-Dec-20
£ £ £ £ £ £ £
General, Churchyard & Graves 41,631 1,208 (1,208) - 5,955 47,586 41,631
TOTAL 41,631 1,208 (1,208) - 5,955 47,586 41,631
16. ANALYSIS OF NET ASSETS BETWEEN FUNDS
Fund balances at 31 December 2021 Unrestricted Restricted Endowment Total Total
are represented by: Funds Funds Funds Funds Funds
£ £ £ £ £
Tangible fixed assets 5,714 1,251,000 - 1,256,714 708,571
Investments - - 47,586 47,586 41,631
Current assets 1,189,701 484,656 - 1,674,357 2,119,142
Current liabilities (280,009) - - (280,009) (178,709)
Total Net Assets 915,406 1,735,656 **47,586 ** **2,698,648 ** 2,690,635

30

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

17. SUMMARY OF GRANTS PAYABLE FOR MISSIONARY ACTIVITIES

A Passion for Life
A Rocha International
A Rocha UK
AIM
Hannah Jackson
AIM
Paul and Helen Shepherd
AMiE
Anglican Mainstream
ANiE
C of E Evangelical Council
Christian Unions Ireland
Mark Ellis
Christianity Explored
Church by the Bay
Ben Petersen
Cross Teach Trust
Sophie-Ann Rebettes
Crosslinks
Anna Poor
Crosslinks
Hazel Maunsell
Crosslinks
Jamie Read
Crosslinks
Mark Oden
Diocese of Rochester
Diocese of Kondoa (Tanzania)
ECM International
Chris Wigram
EFAC
Julia Cameron
GAFCON UK
Japan Christian Link
Selvan Anketell
Langham Trust
London City Mission
Oak Hill College
Daniel Halpin
OMF
Beverlea Parkhill
OMF
Kathryn Bowen
OMF
StJohn & Ellie Perry
OMF
Tony Waghorn
Oxtrad
Bishop Nazir Ali
Penny Trust
Pete Portal
Proclamation Trust
Sophie-Ann Rebettes
Proclamation Trust
Redcliffe College
Kathryn Bowen
RZIM
Sam Allberry
Sevenoaks Area Youth Trust
SIM
Emma Brewster
The Faith Mission		 2021
2020
£
£
5,000
-
1,020
500
1,020
1,000
6,510
-
12,312
10,050
500
500
1,100
1,100
5,000
-
1,000
1,000
16,000
16,000
2,000
2,000
2,500
-
5,000
2,500
16,800
16,800
-
4,000
2,000
-
16,000
16,213
2,000
2,000
1,500
-
6,000
6,000
2,000
7,000
8,400
8,000
2,000
2,000
5,000
5,000
1,250
1,250
17,600
17,000
17,600
16,000
26,900
24,000
3,300
3,000
5,000
5,000
1,000
1,000
-
2,180
2,000
2,000
-
810
-
1,000
6,000
6,000
8,000
8,000
2,000
2,000
211,312
190,903

31

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. NICHOLAS, SEVENOAKS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (Continued)

18. TRANSACTIONS WITH MEMBERS OF THE PCC AND CONNECTED PERSONS

The stipends/salaries and expenses of the clergy, who are all PCC members, are included within the figures shown in note 3 (b).

Transactions with other (non-clergy) members of the PCC and connected persons were as follows: £6,000 (2020: nil). The £6,000 represented a lease the PCC entered into in July 2021 with William Greig, (Justin Greig’s son) for £12,000 per annum at 18 The Green to provide accommodation for a ministry member of staff and his family.

32