The Parochial Church Council of the ecclesiastlcal tist Harborne arish of St John the T JOHN'S CHURCH HARBORNE BIRMINGHAM 2021 TRUSTEES ANNUAL REPORT AND FINANCIAL ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2021 Istered Cha Number 1132862 new version 0412022
St John's Church. Harborne, Bimiingham The Parochlal Church Council of the ecclesiastical tist Harborne arish of St John the TRU TEES ANNUAL REPORT AND ACCOUNTS R ENDED 1ST DECEMBER 2021 CONTENT Page Trustees. Report Independent Auditorfs R8POrt 12-15 Stat8ment of Financial Activities 1&17 Balance Sheet 1&19 Statement of Cash Flows 20 Notes to the Accounts 21-30
St John's Church. Harborne. Birmingham TRUSTEES. REPORT FOR THE YEAR ENDED 1ST DECEMBER 2021 The Parochial Church Council (PCC) of the eccleslastical parish of St John the Baptist, Harbome is pleased to present its report and financial slatemenls for the year ended 3181 December 2021. The PCC are the trustees of the registered charity. Objectlves and Actlvltles Th8 purpose of the Charity as stated In the goveming documents is to cMperate with the incumbent in promoling in the ecclesiastical parish th8 whole mission of the church, pastoral, evangelistic and ecumenical and to provide public benefit through the provision of fe regular public worship open to all. Additionally. beyond Harbome to the general public las slated in our charitable framework) through grants and gifts to the wider mission of the church to reach all people in this county and overseas. How our acllvftles dollver publlc beneflt and who has beneflttèd The various Covid-19 restrictions during the year have continued to significantly change the way in which the Church has been able to operate but progressively since June 2021 more services and activities have taken place in pètson. Sunday services have conllnued lo be available online to enable those who have not been able to attend to benèfit from worship, pr8y8r and teaching. In 2021 St John's had a worshipping communlty Induding children of approxlmately 550 (based on Ihe average Sunday attendances both al Church and on lin8 in October 2021). In addStion lo this. activities are undertaken throughout the week. These build on the church values an(J these activities would not take place without significant contribution from volunteers. It is estimated thal by the end of the year the equivalent of up lo 400 m8mb8rs were involved in dtfferent rolès on Sundays and throughout the week to ensure that tho church was able to fulfil its purpose and run all the planned a¢tlvities. The weekly activities are varied and cover a whole range of different areas. The following provides a brief summary of some of the things that took place during 2021 showing in italics the impact of th8 resiri¢tions on the activities of the charity with some things online, others being put on hold. ProgressNely activities have restarted since the summer as we have b88n able to followng the guidelines issued by the Govemment and Church of England. 1. Worshlp team and other musicavsinging activltles often In support of Sunday services. on line at the beginning of the year and back in Church from May. 2. Powerhouse - prayer, worship and reflective times - nline for most of the ear back m&&tin fo ether since the autumn. 3. DiscipleshiplHome Groupsrralk logether a numb8r of small groups meeting together regulady for fellowship. prayer and bible study. back meetin to ether from the autumn 4. Alpha courses and breakfast events - these help peoplo to understand the Christian faith. On Hold but 8 new Al ha course held in mn
St John'$ Church, Hart)orne, Bimilngham 5. Working with toddlers. children, young peop18 and students. online or on hold until the auturnn Young People - face-to-face provision for young people has taken place throughout the year. as and when restrictions have allow8d and in strict compliance with govemment Covid policy 6. Crossway- Two main areas of activity: Supporting older people and those from Ihe community seeking help - P stLr for oldér le volunt88rs kee in in re ular tou h and rovidin ort and re ular u dates and rollections. Sho in doorste visits ifts and activities h I at 3 Care Hom s. Thursda min S8Nice in the autumn b. Providing help to those in debt and neèding support. H bè8n online f either reduced actiwty 7. City Paslors - people working with the team in the main pub and dub area of the City Centre on a Fridaylsalurday night. - n hold 8. Prayer ministries and groups m88ting together for prayer on a regular basis. online 9. Marriag6 Course - supwt for couples - lac inlh Mai lin wilh All of these activities are dependent on thé volunteers who lead and glv8 of their time to enable all areas of the Church to function. Whilst we employ full time stsff and we have 2 Clergy appointed to the Church plus 2 other cl8rgy who are licensed to thè Parish we would not be able to function in the way we do without the input of all the volunteers. The sca18 of the work of the charity is greatly enhanced by the Input of all the membars of the Church. The success criterion is to ask whether an activity helps. supports. encxiurages and builds up people in their lives and fatth. The PCC and stsff regulady r8view the activities of the church looking at th8 success of each key activity, assessing the benefits to those attending and planning future activiti8s accordingly. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit whèn r8vi8wing our aims and oblectlves and In plannlng future activilies. The ongoing and longer temi aims of the charity are to reach more people with the Gospel of Jesus and to build on what we already have in place across all the areas of ministry. Bulldlng for Mlsslon The major event during 2021 was the complets'on of the redèv8lopmenl of the main Church si18 refurbishing the sanctuary and Constructing a new 2 storey extension provldlng halls, kilchen. arculating space and meeting rooms. The focus during 2022 will be working towards the completion of the overall project which includes the distribution of financial gifts from the tithe lo a number of organisatsons helping to fulfil our wider mission beyond Harborne.
St John's Church, Harbome, Blmilngham Slruclure, Governance and Management- Governing Document St John's Church, Harbom8 (St John's) is governed by approved documents issued by the Church of England.. the Parochial Church Council {Powersl Measure 1956 as amended and the Church Representation Rules (contained in Schedule 3 to Ihe Synodical Government Measure 1969 as amended). The PCC was regist8red wlh the Charity Commission on 21 November 2009. Reeruitmont and Appolntment of PCC The PCC Is elèctad from those members of the congregation who have been on the electoral Roll at least 6 months at th8 time of the Annual Parochial Church Meeting IAPCM). In addition, members of the congregation on the electoral rol8 of the parish and seNing on the Deanery. Diocesan or General Synods together with the clergy licensed to the parish, are memb8rs of the PCC. PCC Inductlon and Tralnlng Upon joining the PCC, new members receive an inductlon pack which includes the Charity Commission publication "Th8 Essential Trustee", a copy of the financial budgat for the current year. the prior year accounts and a copy of th8 minutes of the most recent meeting. A verbal presentation Is then glven by the PCC treasurer with the Chair br18fing new members on any current topics. Organlsatlonal Struclurn The PCC meets up to 6 times per annum with an agenda circulated to PCC members in advance of each meeting and with supporting documents on many of the ag8nda ilems. Members of the Standing Committee include th8 Vlcar. Assoclate Vicars, Associate Vicar Emeritus. Church Wardens, Treasurer, PCC Vicevchair and the PCC Secretary. The Church Wardens are members of PCC and inter alia form a dir8cI link betW8en thè Blshop and the parish. They see thal the PCC carries out ils responsibilities for the care, maintenance and insurance of the church, its contents grounds and other buildings owned by the PCC. They also arrange to inspect the fabric of the church's premises al appropriale Sntervals and report to the annual parochlal church meeting, The PCC employed 11 members of staff at 3111 December some who lead various ministries and others who provide support to the overall life of the Church. This is in addition lo the Vicar and Associat8 Vicars who are employed by the Diocese of Bimingham on behalf of the Churth of England. a further person licensed to the Parish plus 2 volunteer roles 8 community pastor and a sm811 group pastor. The employed people split across the activities are as follows: Operations Manager 1. Support for Older People 1. Worship 1. Youth, Children's & Toddlers Ministries 3, Communications & secretarial 3 and Support 2
St John's Church. Harl)ome, Binningham Parochlal Church Councll (PCC) Members of the PCC who are also truste8s for the purposés of Charity Law and who served during the year and up to the date of the r8POrt are set out below: Helen Baines Bénlamin Baker Cassandra Beeson Leonard Browne Adrian Collings Ben Collins Michael Down Ruth Downing Laura Gilyead Fiona Gregson David Harvey Stella Jennings Kathy Lee-cole Richard Lov811 P8t8r Prellove Marian Pretlove James Reed Janet Ryland Secretary Jonathan Tattersall Clergy James Whitehouse Deanery & Diocesan Synod Clergy from October 2021 Chair. Clergy Deanery Synod Vicevchair Deanery & Diocesan Synod Ward8n Clergy Treasurer Dean8ry & Diocesan Synod until July 2021 Warden Deanery Syn¢)d Deanery Synod from April 2021 from April 2021 Key Management Por8onnol The key management personnel of Ihe charity a the Vie2r Revd L Browne and Associate Vicar Revd J Tattersall supported by the Operations Manager Mr S Foster, Church wardens DR R Lov811 and Mrs R Dovming and all the trustees of the charity. Pay & Romungratlon of Kèy Management Per40nnel and Employeos The pay of the clergy is set and pald by the Bimiingham Diocese of the Church of England. Additionally, the vicar and 1 associate vicar have the benefit of a Diocesan own6d vicarage and 1 associate vicar has a house provided by the PCC for which the Diocese make a monthly contribution towards the running costs. The role of Churchwarden is volunt8ry and no payment is mad8 for that appointment. The pay scales of all employees are set againsl a matrix of Ihe different roles which has been benchmarked and is kept regularfy up to dale. The 8mploy88s pay is reviewed annually by the tmstees and a cost of living rise applied as appropriate.
St John's Church. Harborne. Blrn)Ingham Pension Scheme The PCC joined Ihe scheme operated by the Bimiingham Diocese and the provider is Friends Life which is now own8d by Aviva. The PCC are contributing 30A in line with the regulations. Rlsk Management and Safeguarding A risk register Is In place covering the major activlties of Church Ilfe. A full review of safeguarding has taken place this year and have 2 safeguarding offic8rs in place supported by a member of slaff. All appropriate policies are in place ensuring the safeguarding of children and vulnerabl8 adults. The required levels of checks and training are undertaken for everyone involved with leadership and all complete th8 necessary training. Fundralslng During the last 2 years all of our committed giving has come from members of the Church and legacies from fomier members. The Church does not hold any public appeals for funds. Within the Church there is usually a financial appeal each year in the autumn. We have not been subject to any undertaking to be bound by a voluntary standard as that does not apply and there are no activities to monitor. The internal financial appeal is to the whole Church with letters to the congregation but no individuals are followed up In any way and no pressure is applied to individuals to contribute and so any vulnerabl8 pèople are protected. Additionally, there have been special appeals to the Church for the Building for Mission project. The detsils of individual donations are only known by the Gift Aid Secretary 8nd the Hon Treasurer with the trustees and st8ff only being giv8n summary reports of income. As part of the Building for Mission project th8 trustees engaged the seNic8s of Wootton George fundraising consuliants in 2019 to advise and support the Church in the process of applying for grants from Charitable Trusts for our capital project. The final grant of £10,000 from thSs exerclse was received in 2020. The chUh does not use any professional fundraisers. Flnanclal Revlow for 2021 and 2020 The principal fundSng for St John's comes from giving by church members and the main financlal highlights for the year are set out below. 2021- General Fund - Income and Expendfture (k z £OOOs) With th8 ongoing restrictions and also being out of the building until May the level of costs conlinued to bè reduced whilst income was largely maintained. The trustees continued to rèview the financial situalion regularly to ensure that the Church remained on track to achievè a surplus. The actual results for the year show a surplus of £46k compared to a surplus of £86k in 2020. The amount of £40K received from a legacy in 2020 was transferred to a designated fund leaving a net movement of funds of a positive £7K.
St John's ChUh, Harborn¢, Bimiingham Donalions plus gift aid show8d a decrease of £14K compared to 2020 at £741 K whilst other income decreased by £42k mainly due to the legacy of £40k received in 2020. Costs wére £20k lower than in 2020 due to a reduction in staff salaries £41 k offset by an increase in building related costs (£23k) as we rewoccupied the Church and started our adivities following the completion of the building project and the lifting of restrictions. Charitable Income showed a reduction of £3K from £7K to £4K which reflects the loss of income from toddlets. children and youth ministries due to the restrictions and not being able to meet and tske th8 older groups on trips away. 2020 - Goneral Fund - Incom• and Expendlture (k x £OOOs) The trustees reviewed th8 financial situation following the outbreak of Covid 19 and aclions were taken to r8Strict expenditure and income was monitored on a monthly basis to ensure that the Church remained on track to achiève a surplus. Th8 actual results for the yèar show a surplus of £86k compared lo a deficit of £88k in 2019. This was du8 to 4 main factors: 1. Reduced costs following actions laken by the trustees to restrict expenditure - £51 K 2. Savings due lo Covid 19 and not being able lo physically meet - £42K 3. Increased donations particulady towards the end of the year - £30K 4. Unexpected legacy- £40K Donations plus gift aid showed an Increase of £40K compared to 2019 at £755K plus an unexpecl8d18gacy of £40K, whilst costs were £142k lower than in 2019 due to less spend on 2 Milford Copse £78K and savings as indicated above £64K. Charitable income showéd a r8duclion of £24K to £7K which reflects the loss of incomè from toddlers, children arKI youth ministries due to the restrictions and not b8ing able to meet and take the older groups on trips away. 2021- Restrfctod Funds (Note 12 Church Funds) Bulldlng-No StrIcted Income or costs in 2021. Resurrectlon Church - The financial support for the Church in Beifut was £26K. Worshlp Fund- A spend of £2.5K on purchasing an electroni¢ organ for use in Church S8rvic85. This leaves a balance of£15.5K at the end of the year. 2020 - Restrfcted Funds {Note 12 Church Funds) Buildlng - The grant money received during the year of £10,000 and money from special events was Irealed as restricted and the costs equalled the income at £11,507 leaving a zero balance to carry forward.
St John's Church, Harborne. Blrnilngham Resurrectlon Church - The financial support for the Church in Beirut was £57.975. Worshlp Fund - A total of £17,916 was received from the New English Orchestra which ceased to operate as a charity and donated its remaining funds to St John's. 2021- Designated Funds {Note 12 Church Fundsl Houslng Fund- The current 3 properties are all induded al fair value of £939K which is an increase of £60K from the postlion at the end of 2020. The market value of the property on Milford Copse has been reassessed whilst the othets remain unchanged from 2020. The trustees believe that this is a fair refleclion of the income that would be derived from any sale. Bulldlng For Mlsslon- The cuent balance of £251k includes income accruals of £36K being the remaining pledged income including gift aid and also a third of a legacy left to the Church of £90.4K. This represenls Ihe remaining money held by the trustees after paying for all the buildinglrefurbishment costs. The only remaining contractual commitment is payment of the relention monies and is shown at note 13b ofthese accounts and is £85K in 2022. The balance, given towards the tithe. wll be used as gifts to other organisations during 2022. Legacy Funds - A closing balance of £220K. Two Thirds of a legacy rec£ived thls year £180K plus £40K received in 2020 are held in a fund and wll be used during 2022 and beyond. 2020 - Deslgnated Funds (Note 12 Church Funds) Housing Fund- The current 3 properties are all induded at fair value of £879K which is unchanged from the position al the end of 2019. The trustees believe Ihat this is a fair reflection of the income that would be derived from any sale. Building - The current balance of £761 k includes income accruals of £63K and represents the remaining money held by the trustees after paying for all the buildinglrefurbishment costs over the last 18 months. The income from donations shows a negative in year figure of £54K. This is due to pledged income that was accrued in 2019 which is now unlikely to be received so the accrual has been adjusted accordingly. The remaining contractual commitment is shown at note 14b of these accounts and is £485K in 2021 and £85K in 2022. ReseNes Pollcy The policy of the PCC is to distribLrte its reserves in accordance mission of the Church of England while ensuring that there are sufficient funds to cover cash flow requirements relating to committed expenditure. At the end of 2021, the PCC held a totsl fund of £1,722k. General Fund - There was a positrve balance on the general fund of £296k {£289k 20201 after transferring £39.5K to a designated fund against a policy reserve requirement of holding no less than £125k.
St John's Church, Harborne, Birmingham Fixed assets in the designated property housing fund £939k (2021) and £879K {2020). The policy of holding no less than £125K has been based on the need to have sufficient in hand to pay salaries and cover other commilments for a minimum of 3 months. There is an opportunity to borrow against the properties owned by the PCC at 2 Milford Copse & 77-79 Vivian Road and in extreme circumstances this could be called upon. Almost all the charitable income comes from the members of the Church and so any reduction is immediately apparent and steps Gan be taken to either increase income or reduce costs as appropriale. The PCC therefore consider the current target of £125K is entirely appropriate. Designated Fund: Bulldlng for Mission The balance carried fotward of £251 k is to cover the costs of the project and there is no plan to keep any reseryes once the overall project has been completed. Legacies: A fund of £220k is being held in a designated fund pending allocation to projects during 2022. Global Partnèr Support and grant making policy The purpose of Global Partner Support (GPS) is to resource mission to extend Jesus, Kingdom outside Harbome (resourcing mission to reach the wortd? and is part of the whole mission of the Church. The objectives of GPS are: To provoke interest in local and global mission. To contribute lo equipping members of St John's mission. To support and nurture people as together we seek to discem God's calling on their lives. To develop, maintain and apply appropriate policies for thè selection and support of andidates. projects and agencies. To support our GPS partners. To coordinate prayer for our GPS partners. To manage Sl John's financial investment in mission through GPS. GPS is an executive body working undér the direction of the PCC. Their financial rol8 is to dislribute the budget allocated to the GPS in accordance with agreed guidelines and within a framework presented to and approved by the PCC. Typically the monies are used to support mission at home and overseas through grants made to individuals and organisations ihat nomially have some association wth St John's. In addition, the GPS teams bring this missionary work to life within the congregation through aangIng vocalion days. prayer and contributing to seNices focused on mission and the missionary links that are supported.
St John's Church, Harbome, Birnilngham Plans for the future The current plans for the ftjture ministry of St John's are affordable. Cash flow will continue to be monitored and action taken as required ensuring the financial wellbeing of the Church. We conlinue to ascertain how we a¢h out to the community around us and continue lo grow the outward focus of the Church. There are many activities which God has blessed at St John's over the years. Some have continued in different foms during the pandemic restrirtions whilst others have been suspended and may be resumed in due time., it may be right for others to be replaced by something entirely new. We are seeking the Holy Spirit's guidance to discover how our existing ministries will develop in the new building and His enabling to reach out to the community in new ways without losing old connections and what we have leamed during the past months. We have 8Stablished 4 bridge building iask groups to put forward plans as lo how we develop new ministries in areas of Wellbeing. Social Justice and Transformation. Hospitality and Craative Arts and they are due to report in the spring of 2022. We also need to hear God's call to prdy for labourer5 to be sent to the harvest especially where some supporters are no longer able lo serve in the ministries which will wntinue and expand. The refvrbishment of the Church and rebuilding of the Hall completed in 2021 at a cost of £4m was all part of the 5 year plan and the truslees are also focussing on the other actions we have been pursuing although the restriclions of the last 2 years have slowed down our development plans. We are looking to the future and continue to listen lo God for direction. Our 5 year plan reaches the 5th year in 2022 and as mentioned above there is a continuing review to plan how we move forward. The other exciting development is that there will be a revttalisation project in line with our 5 year plan to work wilh St Mary's Church in Bearwood. The Revd Ben Baker who is currentiy licensed to St John's will be moving to St Mary's with a team of people later in the year to build up the existing ministry in that area. A recovery ministry is starting in January 2022 aimed at helping people who need a safe space to work through challenging and difficult areas of their lives. The plan also covers the following: A church community which has seen many people come to faith through a renewed concem for the lost. and Confiden in the transfomiing power of the gospel. primarily through growing authentic relationships A renewed ministry to Toddlers, to Older People and to Young Adults- including sludents land in particular International students), to World Mission, and to those on the margins A training and resource church which equips our members (and Christians in the wider area) for life and ministry (intem training I courses on= biblical and theological studies I relalionships I work Imoney I leadership I gifting and ministry I growth toward maturity etc) and which offers more bridge building resources to the community {panting, marriage, wellbeing. fitness courses etc.)
St John's Church. Harborne. Birmingham A church which has Im0Mented new ministy ventures 18.g. to the homeless,. to refugees,. to prisoners) wth other churches of like mind lo live out our commitment to unity A church which has faithfully lived out our desire to "have a heart for God. for our city. and for the nations" In summary: Build our community, Be more outward looking Win more p8ople for Christ Be a resourcing and training church Have a welcoming presence on the High Street in Harborne H81p St Mary's Church to build a strong new ministry in Beap4VOOd. Golng Concorn & Future Uncertalntles 1 - Covld-19 - The trustees are carefully rnonitoring the current situatbon and the ongoing impact on the life of th8 Church and the financial implications. In¢ome is being monitored closely and in 2021 we have seen a small decrease in donations to the Church. Thè net current assets of £296K in the general fund shows an increase of £6k after a transfer of £39.5k to a designated fund in the general fund al the year-end gives the trustees the confidence and ability to cope wilh some loss of income in the coming months whilst being ablè lo maintain the charity as a going ¢onc8m. The position on the buildinglrefurbishment elemenl of Building for Mission is that we are able to meet the final costs wilh a further appeal due in 2022 to cover the remainder of the tithe costs but none of that has been promised so there is no liability for the charity. 2. Other - The truslees are satisfied that St John's has adequate resources to conlinue lo operate as a going concem for the foreseeable future and have prepared the financial statements on that basis. The trustees are not aware of any material uncertainties that wlll affect the charity's ability to continue. Regular monitoring of income levels is in place to ensure that any reduction is identified and steps are taken to correct any shortfall. Reference and Admlnlstratlve Infomiatlon Charity Name The Parochial Church Council of the E¢¢l8siastical Parish of St John the Baptist, Harborne {St John's Church, Harbome) Charity Registration Number 1132862 Prlnclpal Office and Registered Address St John's Church High Street, Harbom8 Bimingham, B17 9PT olicitors Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Prima Bankers Lloyds Bank PLC 142 Edgbaston Park Road Birmingham B15 2TY MHA Macintyr8 Hudson Rulland House 148 Edmund Street Bimingham, B3 2FD econda Bankers: CAF Bank LTD, 25 Kings Hill Avenue. West Malling, Kent ME19 4JQ 10
St John's Church. Harbome. Birmingham Trustees. {PCCI responsibilities statement The trustees are responsible for preparing the Trustees. Annual Report and the financlal slalements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law appllcable to charities in England & Wales requires the trustees to pr8par8 financial statements for each financial year which give a true and fair view of th8 state of affairs of the charity and of the incoming resourcès and application of resources of the charity for that perlod. In preparing these financial statements, the trustees are required to.. select suitable accounting Polie$ and then apply them consistently., observe the methods and principles in the Charities SORP 2015 (FRS 102); make judgements and estimates that are reasonable and prudent.. state whether applicable accounting standards have been followed, subject to any material departures dis¢losed and explained in the financial statements. prepare the financial statements on Ihe going concern basis unless It Is inappropriate to presume that the charity will (x)nllnue in operation. The trustees are responsible for keeping proper accounting records that disclose vAth reasonable accuracy at any time the financial position of the charity and enable th8m 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 ar8 also responsib18 for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other Irregularftl8S. The trustees are responsible for the maintenance and integrity of the charity and financial inforrnation included on the charity's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial stal8mènt$ may differ from legislation in other jurisdictions. Audltors for 2022 MHA Macinlyre Hudson has also expressed their wllingness lo continue in office and will be proposed for re-appointment al the Annual Parish Church Meeting in April 2022. Approved by the PCC on 28th March 2021 and sTrgned on its behalf by: Revd Leonard Browne, Vicar PCC Chalnnan Mr Davmd Harvey PCC Treasurer
St John's Church. Hart)ome. Binningham Independent Auditorfs Roport to tho Mombers of The Parochial Church Council of tho eccleslastlcal parlsh of St John the Baptist, Harborne Opinion We have audited the financial statements of The Parochial Church Council of the ecclesiastical parish of St John the Baptist. Hart)ome. also known as St John's Church, Harbornè Ith8 'charity') for the year ended 31 December 2021 which comprise the Statement of financial activities, Ihe Balance she8t, the Statement of cash flows and thé related notes, including a summary of significant accounting policies. Thè 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 R8POrting Standard applicable in thé UK and Republic of Ir8land' (United Kingdom Generally Acc8Pted Accounting Practice). The financial ststements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in pref8rence to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has beèn thdraWn. This has been done in order for the accounts to provide a true and fair view in accordance with the Gen8rally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial ststements= give a true and fair view of the slate of the tharity's affairs as at 31 December 2021 and of its incoming resources and applicats'on of resources for the year th8n ended; have been properly prepared in accordance with United Kingdom Gènerally Accepted Accounting Praclic8- and have been prepared in accordance with the requirements of the Charities Act 2011. Basls for oplnlon We conducted our audit In accordance with Intemational Standards on Audltlng (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described In the Auditors, responsibilities for the audit of the financial statements section of our r8POrt. Wé are ind8p8nd8nt of the charity in accordance with the ethical requirements that are relevant to our audit of the financial ststements in the United Kingdom, including the Financial Reporting Council'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 appropnale to provide a basis for our opinion. Concluslons relatlng to golng concèrn In auditing the financial ststements, we have concluded that the Truslees, use of the going oncem basis of accounting in the preparation of the financial statements is appropriate. 12
St John's Church. Harborne. Bimlingham Independent AudIt0S Report to the Members of The Parochial Church Council of the ecclesiastlcal parish of St John the Baptist, Harborne (Contlnued) Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, indiwdually or collectively, may cast significant doubl on the charity's ability to conlinue as a going concem for a period of at least hvelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevanl seclions of this report. Other Inforniatlon The other infomialion comprises the information induded in th8 Annual report other than the finanaal statements and our Auditors. report thereon. The Trustees are responsible for the other infomation contained within the Annual report. Our opinion on the financial statements does not cover the other information and. except to the exlent OtherSe explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and. in doing so, consider whelher the other infomiation is malerially inconsistent with the financial slatements or our knoedge 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 detemiine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfOed, 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. Matters on which we are required to report by exception We have nolhing to report in respect of the following matters where the Charities (Accounts and Reports) Regulalions 2008 requires us to report to you if, in our opinion.. the information given in the Trustees, report is inconsistent in any material respect th Ihe financial slalements- or sufficient accounting records have not been kept,. or the finanrial statements are not in agreement with th8 accounting records and retums: or we have not received all the infornation and explanations we require for our audit. Responslbllltles of trustees explained more fully in the Trustees. r85ponsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such inlemal control as the Trustees detemiine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 13
St John's Church, Harbome. Birmingham Independent Audltorfs Report to the Mombers of The Parochial Church Council of the ecclesiastical parlsh of St John tho Baptlst, Harborno (continued) In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concem. disclosing, as applicable. matters related to going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic altemative but to do so. Audltors, responsibilities for the audit of the financlal statements We hav8 been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wth 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 Auditors, report that includes our opinion. Reasonable assurance is a high level of assuran, but is not a guarantee that an audit conducted in accordance with ISAS {UK) will always detect a material misslatement when it exists. Misslalements can arise from fraud or eOr 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-complian with laws and regulations. We design procedures in line with our responsibilities. ouuined above. to detect material misstatements in respect of irregularities. induding fraud. The extent to which our Pfocedur8s are capable of detecting irregularities. induding fraud is detailed below: enquiry of those charged with govemance around actual and potential litigation or enquiry of those charged with govemance around any instances of non-compliance with laws and regulations- perfoming audit work over the risk of management override of controls, including testing of joumal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the nomial course of business and reviewing accounting estimates for bias" reviewing minules of meetings of tht)se ¢harged Vth govemance. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities, including those leading to a material misststement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment. forgery, collusion. omission or misrepresentation. A further description of our responbilItIeS for the audit of the financial statements is l¢xated on the Financial Reporting Council's website at: vhvw.frc.org.uklauditorsresponsibilities. This description forms part of our Audttors. report. 14
St John's Church. Harborne, Birniingham Independent Auditor's Report to the Members of The Parochial Church Councll of the eccleslastical parlsh of St John the Baptlst. Harl)ome (contlnued) Other matters The financial statement of The Parochial Church Council of the ecclesiaslical parish of St John Ihe Baptist. Harbome for the year ended 31 December 2020 were unaudited. Uso of our report This report is made solely to the charitys Irustees. 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 mighl state to the L*arity's Irustees 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 responsibilty to anyone other Ihan the charity and its trustees, as a body, for our audit work, for this report. or for the opinions we have fomied. MHA Maclntyre Hudson Chartered Accountants Stalulory Auditors Bim)ingham. United Kingdom Date= 5 April 2022 MHA Maclntyre Hudson are eligible to act as auditors in temis of section 1212 of the Companies Act 2006. 15
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ST JOHN'S CHURCH, HARBORNE. BIRMINGHAM NOTES T THE ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 202 Note 1: Accountin olicies for the ear ended 311t December 2021 The financial statements have been prepared in accordance with the Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wlh the Financial Reporting Standard IFRSI FRS 102 applicable from 1 January 2015 and current Church Accounting Regulations. The financial statements have been pr8pared on a going conc8m basis under the historical cost convention, modified to include certain items al fair value. The financial slalements are preserited in slerfing which is the fvnctional curr8ncy of th8 Charity and rounded to the n8arest £. The charity constitutes 8 public benefit enlity as defined by FRS102 and is registered as a charity in England and Wales. Its principal office is St John's Church, High Str88t. Harbome. Birmingham. 817 9PT. The significant a¢Unting policies applied in the preparation of these finanual statements are set out below. These poliaes have been consislently applied to all years presented unless other*ise stated. (a) Funds Unrestrlcted funds Repr8s8nt general funds which can be used for PCC ordinary purposes. Funds designated for a particular purpose by the PCC 8re also unrestricted. Restrlcted funds Represent.. (a) Income from trusls or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest: and Ib) Donations or grants recelved for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for whlch they were given. Any balance remaining unspent at the end ofthe year must be carried forward as a balance of that fund. (b) Income Voluntary Income and capllal sources Planned giving and donations receivable under gtft aid is recognised only when received. 21
ST JOHN'S CHURCH. HARBORNE. BIRMINGHAM Note 1: Accountlng pollcles for the year ended 31 st Decomber 2021 (contlnued) Income tax recoverable on gift aid donations is recognised when the income is recognised. Collections are recognised when received by or on behalf of the PCC. Grants and legacies to th8 PCC are accounted for as soon as the PCC is notified of Its legal entitlement. th8 amount due is quantifiable and its ultimate receipt by the PCC is probable. Income pledged towards thè Building for Mission proi8Ct along with any associated gift aid is recognised as soon as the PCC is notrfied of the pledge. ¢. Expendlturo Expenditure is rècognised on an arxruals basis as a liability is incurred. Church actlvltles The diocesan common fund is acUnted for when paid. Any amounls unpaid at 31 December are provided for in thése accounts as a constructive Ithou9h not a legall obligation and is shown as a creditor in the balance sheet. Expenditure Is recognised once there is a legal or constructiv8 obligation to make a payment lo a third party. it is probable that settlement will be required and th8 amount of the obligation can be measured reliably. All costs are allocated between the exp8ndilure categories of the Statefflent of Financial Activities on a basis designed lo reflect the use of thè resource. Costs relating to a particular activity comprise both costs that can be allocated dirèctly lo such activities and those Costs of an indirect nature necessary to support them. The delivery of our public benefrt of free public worship open to all is dependent on us having the necessary buildings to be able to deliver that benefit therefore the allocation of the costs relating to the Church, Crossway and Cleryy housing has been allocated as a direct cost in 2021 rather than support and 2020 costs have been restated. Grants and donatlons made by Global Partner Support Granls and donations are accounted for when paid over, or when awarded. if that award creates a binding obligation on the PCC. Operatlng Leases Rentals payable under operating leases are charged to the Statement of Financial Activities on a slraight line basis over the term of the18ase.
ST JOHN'S CHURCH, HARBORNE. BIRMINGHAM Note 1: Accounting poll¢les for the year ended 31* December 2021 (continued) Pension Scheme- Auto Enmlment Employees are enrolled in a defined contribution pension scheme and th8 employer's contribution of 3% is paid monthly to the Binningham Diocese who administers the scheme. Holiday Pay Accruals The annual holiday p8ri0d runs from the 111 January to the 31st December each year {same as financial reporting peri¢)d) and annual leave is expected to be taken during the year on a lake it or lose it" basis. Any remaining al the y8ar-énd would be only a few days and is th8r8for8 considered insignificant and no accru81 has been made. {dl Flxed Asset$ Consecrated land and bulldlngs and movable church furnlshlngs Consecrated and beneficed propety is exduded from th8 financial statements by $.10 (21 la) of the Charities Act 2011. No value Is placed on movable church fumishings held by the Church Wardens on special trust for the Parochial Church Council and which require a faculty for disposal slnce the Parochlal Church Council considers this to be inalienable property. All expenditure incurred during the year on consecrated or beneficed bulldlngs and movable church fumishings, whether mainlenance or Improvement, Is written off as expenditure in th8 Statement of Financial Activities. Freehold land and bulldlngs used for charltable purposes & Invostmenf propertles The propertiés held by the Charity are revalued from time to time as nec8SS8ry 8nd have been includ8d at estimated fair value. (e) Current assols Amounts owing lo the Parochial Church Councll at 31 Dècember In respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncolle¢table. Short term deposits includ8 cash held on deposit at the bank. In Golng concern The financial statements have been prepared on a going concem basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of fvnds held and Ihe expected level of income and expenditur8 for 12 months from aulhorising these financial statements. Th8 budgeted inwme and expendituré is SuffIent with the level of reserves for the charity to be able to continue as a going concem. (g> Judgements and key sources of estlmatlon uncertalnty In applying the accounting policies the truslees are required to consider judgements made and key sources of estimation uncertainty which might have a significant effect on the amounts recognised in the financial slalements or impact on the carying amounts of assets and liabilities within the next financial year. These include estimations of the fair value of fixed asset investment properties. and tangible fixed asset properties. 23
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