## Christ Church Bromley
Report and Accounts Year ended 31 December 2023
**==> picture [92 x 32] intentionally omitted <==**
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **CHRIST CHURCH BROMLEY PCC**
## **CHARITY INFORMATION**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **Full Name**
**Working Name**
The Parochial Church Council of the Ecclesiastical Parish of Christ Church, Bromley
Christ Church Bromley PCC
## **Members of the Parochial Church Council (who are the charity's trustees)**
|Vicar|Iain J. Broomfield|(resigned on 30 April 2023)|(resigned on 30 April 2023)|
|---|---|---|---|
||Mark Redhouse (appointed on 25 May 2024)|||
|Other Licensed Ministers|Luke Foster (appointed on 25 June 2023)|||
||Matthew Lloyd|||
|Wardens|Patrick Harrison (Vice Chair)|||
||Alex Padfield (appointed as Warden on 14 May 2024)|||
||James Walsh (re||on 14 May 2024)|
|Deanery Synod Representatives|Angela Ivey|||
||Richard Latteman|||
||Jessica Holland (retired on 16 May 2023)|||
|Elected members|Andrew Cooke|||
||Thomas Feather (Treasurer)|||
||Emily Greig (co-opted on 15 January 2024; retired on 14 May|||
||Alison Howard-Williams (resigned on 13 November 2023)|||
||Jarvis|||
||Christine Lumgair|(retired on 16 May 2023)||
||Cathryn Mitchell (appointed on 14 May 2024)|||
||Deborah Shepherd (Secretary)|||
||Howard Surfleet|||
||Cameron Swift|||
||Lucy Tanner|||
||Justyn Turner|||
||Damian Winstanley|||
|**Charity Registration Number**|1132870|||
|**Principal Address**|Highland Road|||
||Bromley|||
||Kent|||
||BR1 4AA|||
|**Independent Examiner**|Ajay Rajani FCIE|||
||Stewardship|||
||1 Lamb's Passage|||
||London|||
||EC1Y 8AB|||
|**Bankers**|HSBC UK Bank plc|||
|**Contents**|**Page**|
|---|---|
|Charity Information|1|
|Annual Report of the Members of the Parochial Church Council|2-6|
|Independent Examiner's Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9|
|Cashflow Statement|10|
|Notes to the Accounts|11-18|
Page 1
## **CHRIST CHURCH BROMLEY PCC TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023**
The Members of the Parochial Church Council (the 'PCC'), who are the charity's trustees for the purposes of charity law, have pleasure in presenting their report together with the financial statements for the year.
## **OBJECTS OF THE CHARITY**
The Great Commission of Jesus Christ is to make disciples of all nations, baptising and teaching them to obey everything He commanded. The charity is responsible for co-operating with the Church leadership team in fulfilling this Commission in the ecclesiastical parish of Christ Church Bromley in particular. The PCC is also responsible for maintaining certain church property, namely the Church building and the Church Halls on Highland Road, 56 Heathfield Road and 5a College Road, nearby residential properties.
## **SUMMARY OF MAIN ACTIVITIES AND ACHIEVEMENTS**
The primary means by which the above objects of the charity were fulfilled in 2023 was the weekly preaching of Scripture in the public gatherings of the Church on Sunday mornings and the administration of the sacraments. A variety of midweek meetings including Bible studies, groups for mothers, toddlers, children and young people and a senior citizens’ lunch club further support members of the congregation in growing their faith and provide opportunities for non-members from the parish to consider the claims of Jesus Christ.
While the focus of the Church’s work is in the parish, the charity makes significant grants to mission partners working in various different countries across the whole globe. In 2023, these grants totalled about £69,000. A special appeal was held for Mission Beyond Bromley Sunday to raise funds for the commitments already made in the 2023 budget to support mission partners outside Bromley, in the UK and the rest of the world. This raised £12,500.
> T he Trustees confirm that they have had due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.
## **VOLUNTEERS**
The vast majority of the work done to run the Church is carried out by volunteers. Areas where volunteers serve include, but are not limited to, leading Bible studies and children’s groups, running lunch club, leading music in services, decorating the Church building, serving refreshments and liaising with overseas mission partners. It is estimated that between 150 and 200 people serve the Church on a voluntary basis.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The charity is registered with the Charity Commission and operates under the Charities Act 2011. The governing documents for the charity are the Parochial Church Councils (Powers) Measure 1956 (as amended) and the Church Representation Rules.
Page 2
## **CHRIST CHURCH BROMLEY PCC TRUSTEES’ ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT continued**
The appointment of PCC members is governed by, and set out in, the Church Representation Rules. The PCC comprises ex-officio members (which includes clergy and churchwardens), elected members and co-opted members. The PCC organise elections annually at the Annual Parochial Church Meeting (APCM) to fill vacancies. External training sessions during the year are advertised to PCC members who are encouraged to attend.
Responsibility for setting policy and for making operating decisions rests with the PCC who meet regularly to monitor the activities of the charity. Responsibility for the day-to-day operation of the charity has been delegated to a staff team led by one of the clergy team.
## **FINANCIAL REVIEW**
The PCC works closely with The Bromley Christian Workers Trust ('BCWT'), who donate the services of their staff to the PCC. For the year under review the value of these donated services was £271,000 (2022: £277,000). In accordance with the requirements of the Charities SORP, the value of this donation is included within the PCC’s income from donations along with a matching expense within the PCC’s expenditure on charitable activities.
Legacies and substantial one-off gifts are occasionally received and have played a significant role in recent years and have enabled to the PCC to report significant surpluses in both 2023 and 2022. Though legacy income fell this year by £151,000 from £325,000 to £174,000, it remained a very substantial source of income.
The principal recurring source of income continues to be regular donated income from Church members along with related gift aid. In 2023 this increased by £47,000 from £187,000 to £234,000.
The charity also receives small amounts of income from letting property, from various Church events and activities, from its bank deposits and from the donated use of equipment. This income amounted to £26,000 (2022: £30,000).
Overall the PCC’s total income for the year was £705,000 (2022: £819,000).
Expenditure increased by £24,000 to £510,000. The was largely due to an increase in premises expenses, which rose by £26,000 to £56,000. There were a number of reasons for this including higher energy costs, the provision of accommodation for an assistant minister who joined us midway through the year, and some increased expenditure on property maintenance.
The net result was a surplus for the year of £195,000 (2022: £333,000). The surplus reported this year and last year is largely due to the large legacies received in both years.
The PCC’s net assets increased by £195,000 to £1,437,000. Net assets comprised fixed assets and current asset investment properties with a carrying value of £1,247,000, cash of £347,000, other net current assets of £34,000 less loans totalling £191,000.
Page 3
## **CHRIST CHURCH BROMLEY PCC TRUSTEES’ ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023**
## **RESERVES POLICY**
The PCC recognise the need to hold reserves to allow protection of all core activities in the event of income shortfalls and to promote balanced strategic planning. Reserves are defined as unrestricted cash that has not been committed or designated for specific projects or purposes.
It has been decided that the PCC should aim to hold three months’ budgeted on-going expenditure in reserve which would equate to approximately £100,000. Due to the legacies received in recent years, the unrestricted, undesignated cash held by the PCC at the year-end was greater than this at £335,000. The PCC would like to use these legacies to pay off debt, improve facilities and support new initiatives that further the church’s vision. The PCC is seeking to grow giving in 2024 to help ensure that the PCC’s future activities are sustainable.
## **OTHER INFORMATION**
A quinquennial inspection was undertaken in 2021. This identified a need for some relatively minor repairs, which the PCC has been attending to.
For 2023 the Diocese suggested an Indicative Offer (known from before 2019 as the Parish Share) of £77,837; after due consideration, the PCC decided to contribute £57,316.
With regard to the PCC’s obligations to safeguard children and vulnerable adults, the members of the PCC confirm that they have complied with their duties under section 5 of the Safeguarding and Clergy Discipline Measure 2016.
## **KEY RISKS AND UNCERTAINTIES**
Funding the ministry of CCB is dependent on voluntary giving by church members. A failure to maintain income in real terms would restrict our activities. For example, costs of living (which appear to be stabilising but are still relatively high) may mean that financial hardship will continue to be faced by some which may mean that giving remains the same or reduces. Other risks more specific to CCB are set out below.
## **Energy prices**
CCB has spent significantly more on energy in 2023 than in previous years due to global price increases. While the risk of significant increases is less at this point than it was at the equivalent point the previous year, shocks from global prices remain a significant financial risk.
## **Property prices**
Much of the value of CCB’s assets is currently tied up in property. A fall in the property market would reduce the buying power of the Church if those assets need to be sold. Steps are being taken to sell the property at 5a College Road, which was left to us in a legacy, as this is not suitable for use by the church.
Page 4
## **CHRIST CHURCH BROMLEY PCC TRUSTEES’ ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023**
## **KEY RISKS AND UNCERTAINTIES continued**
## **Living in Love and Faith**
The various votes in the last year or so at the General Synod of the Church of England, the net result of which has been the drafting of prayers that seek to bless relationships contrary to the plain teaching of Scripture, have caused a great deal of uncertainty in the wider evangelical constituency, including Christ Church Bromley. If anything, the picture has become less clear with the passage of time, rather than more.
The PCC have been monitoring the situation closely and have resolved to ensure, as far as possible, that funds donated to CCB are not directed to causes which the PCC and Church family as a whole would not be able to support in good conscience. Even with these measures, there remains the risk that some will feel the need to divert giving elsewhere.
## **Changing relationship with the Bromley Christian Workers Trust (‘BCWT’)**
As explained below in the section heading ‘Plans for the Future’, there are going to be some very significant changes to the relationship with BCWT. Though the changes are structural and should not affect the PCC’s day to day activities, it is possible that the additional income that the PCC expects to receive following these changes may not be sufficient to cover the additional costs that the PCC will be taking on.
To help manage these risks, the finance sub-group will continue to monitor income and expenditure closely and will report regularly to the PCC so that, should it become necessary, measures can be taken to address any concerns.
## **PLANS FOR THE FUTURE**
Having appointed a new vicar, the Church will be setting a new vision and strategy. This is likely to include recruitment of a new Associate Minister for Families, Youth and Children in which has been vacant since September 2023.
BCWT main activity is to support the work of the PCC and, following discussions concerning past transactions, it has been agreed that there should be a significant reordering of the relationship in 2024: the residential property owned by BCWT and most of the cash held by BCWT will pass to the PCC.
the PCC and a new charity closely connected to the PCC will take on the employment of the staff currently employed by BCWT.
These changes should not affect the PCC’s day to day activities. Further information is given in the accounts in note 17 ‘Other matters’.
Page 5
## **CHRIST CHURCH BROMLEY PCC TRUSTEES’ ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023**
## **STATEMENT OF RESPONSIBILITIES OF THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL**
The PCC is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources for the financial year. In preparing these financial statements, the PCC are required to:
1. select suitable accounting policies and apply them consistently;
2. observe the methods and principles in the Charities SORP;
3. make judgements and estimates that are reasonable and prudent;
4. state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
5. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The PCC is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **APPROVAL**
This report was approved by the PCC and signed on their behalf by:
…………………………………………………. Patrick Harrison (Vice Chair)
Date:
Page 6
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF**
## **CHRIST CHURCH BROMLEY PCC ('the Charity')**
I report to the members of the PCC (who are also the charity's trustees) on my examination of the accounts of the Charity for the year ended 31 December 2023 on pages 8 to 18 following, which have been prepared on the basis of the accounting policies set out on pages 11 to 13.
## **Responsibilities and basis of report**
As members of the PCC you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a Fellow of the Association of Charity Independent Examiners, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Ajay Rajani FCIE Fellow of the Association of Charity Independent Examiners Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 19 June 2024
Page
##
##
##
|Unrestricted funds|General
Designated
Restricted
Total
2022
2022
2022
2022
£
£
£
£|500,093
-
294,379
794,472|5,328
6,948
-
12,276|11,500
-
-
11,500|264
-
-
264|517,185
6,948
294,379
818,512||179,340
12,262
294,379
485,981|179,340
12,262
294,379
485,981||337,845
(5,314)
-
332,531|(325,000)
325,000
-
-|12,845
319,686
-
332,531||166,593
743,306
-
909,899|179,438
1,062,992
-
1,242,430||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||||||||||||||
|Unrestricted funds|General
Designated
Restricted
Total
2023
2023
2023
2023
Note
£
£
£
£
**INCOME AND ENDOWMENTS FROM:**|Donations and legacies
3
383,410
-
300,657
684,067|Charitable activities
4
5,358
6,995
-
12,353|Other trading activities
4,000
-
-
4,000|Investment income
4,106
-
-
4,106|**Total income and endowments**
396,874
6,995
300,657
704,526|**EXPENDITURE ON:**|Charitable activities:
5
206,483
13,259
289,938
509,680|**Total Expenditure**
206,483
13,259
289,938
509,680||**Net income/(expenditure)**
190,391
(6,264)
10,719
194,846|**Transfers between funds**
326,615
(326,615)
-
-|**Net movement in funds**
517,006
(332,879)
10,719
194,846|**Reconciliation of funds:**|Total funds brought forward
179,438
1,062,992
-
1,242,430|**Total funds carried forward**
14
696,444
730,113
10,719
1,437,276||
## **CHRIST CHURCH BROMLEY PCC**
## **BALANCE SHEET**
## **AS AT 31 DECEMBER 2023**
|Note
**FIXED ASSETS**
Tangible assets
7
**CURRENT ASSETS**
Stock
8
Debtors
9
Investments
10
Cash at bank and in hand
11
**CREDITORS: Amounts falling**
**due within one year**
12
**Net current assets**
**Total assets less current liabilities**
**CREDITORS: Amounts falling due**
13
**after more than one year**
**TOTAL NET ASSETS**
**FUND BALANCES**
14
Unrestricted Funds
Designated funds
Revaluation reserve
Other designated funds
General funds
Restricted Funds|Unrestricted
Funds
£
921,815
500
51,983
325,000
336,228
713,711
(17,969)
695,742
1,617,557
(191,000)
1,426,557
207,749
522,364
730,113
696,444
-
1,426,557|Restricted
Funds
£
-
-
-
-
10,719
10,719
-
10,719
10,719
-
10,719
-
-
-
-
10,719
10,719|Total
Funds
2023
£
921,815
500
51,983
325,000
346,947
724,430
(17,969)
706,461
1,628,276
(191,000)
1,437,276
207,749
522,364
730,113
696,444
10,719
1,437,276|Total
Funds
2022
£
1,250,000
2,000
2,975
-
190,273
195,248
(11,818)
183,430
1,433,430
(191,000)
1,242,430
207,749
855,243
1,062,992
179,438
-
1,242,430|
|---|---|---|---|---|
The financial statements were approved by the members of the PCC and were signed on its behalf by:
---------------------------------------
Patrick Harrison (Vice Chair)
> Charity number: 1132870
The notes on pages 11 to 18 form part of these accounts.
Page
## **CHRIST CHURCH BROMLEY PCC**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **CASH FLOW STATEMENT**
|Note
2023
£
**Cash flows from operating activities:**
**_Net cash provided by (used in) operating activities_**
a
159,096
**_Cash flows from investing activities:_**
Bequeathed property
-
Purchase of property, plant and equipment
(2,422)
**_Net cash provided by/(used in) investing activities_**
(2,422)
**_Cash flows from financing activities:_**
-
156,674
b
190,273
b
346,947
**Analysis of changes in net debt:**
At start of
year
Cash-flows
£
£
Cash
190,273
156,674
Loan from Church Commissioners
Falling due after one year
(191,000)
-
Total net funds / (debt)
(727)
156,674
**Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities**
2023
£
194,846
**Adjustments for:**
Depreciation charges and provisions for impairment
5,607
(Increase)/decrease in stocks
1,500
(Increase)/decrease in debtors
(49,008)
Increase/(decrease) in creditors
6,151
**_Net cash provided by (used in) operating activities_**
159,096
**Note b: Analysis of cash and cash equivalents**
2023
£
Bank operating accounts
47,999
Bank deposits
297,508
Liquid investments (Diocese of Rochester)
964
Petty cash
476
**Total cash and cash equivalents**
346,947
**_Net income/(expenditure) for the reporting period (as per the statement of_**
**_financial activities)_**
**Cash and equivalents at the beginning of the year**
**_Cash and cash equivalents at the end of the year_**
**_Change in cash and equivalents in the reporting period_**|2022
£
356,585
(325,000)
-
(325,000)
-
31,585
158,688
190,273
At end of
year
£
346,947
(191,000)
155,947
2022
£
332,531
5,000
-
10,468
8,586
356,585
2022
£
35,444
153,429
937
463
190,273|
|---|---|
Page
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1 Statutory Information**
The Parochial Church Council of the Ecclesiastical Parish of Christ Church Bromley is a charity registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.
## **2 Accounting Policies**
These financial statements are prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain assets, which are measured at fair value through the Statement of Financial Activities. The financial statements include all activities for which the PCC is legally responsible; the activities of informal gatherings of church members and groups that owe their main affiliation to another body are excluded.
These financial statements have been prepared in accordance with The Church Accounting Regulations 2006, the '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)' ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') require charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.
The principles adopted in the preparation of the financial statements are set out below.
## a) Going concern
The PCC have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The PCC have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the PCC have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The PCC have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## b) Income
Income (which includes planned giving, collections and other donations) is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part income is generally recognised when it is received by, or on behalf of, the PCC. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes:
i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
- ii) Donated facilities, services and goods. Facilities, services and goods donated for the charity's own use are recognised as income when receivable at their value to the charity. When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. At the year end any goods that have not been distributed or consumed are recognised as stock; donated fixed assets are capitalised.
- ii) Legacies. Income from legacies is recognised when a distribution is received from the estate or, if earlier, when the charity has been notified that a distribution will be made and the amount receivable can be measured reliably.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church events and courses.
Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from letting a property temporarily unoccupied by church workers.
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
Page 1
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2 Accounting Policies continued**
## c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Contributions in respect of the diocesan parish share are included in the Statement of Financial Activities for all amounts agreed to being payable for the financial year. Any contributions that have not been paid over by the year end are included as a creditor.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. In the opinion of the members of the PCC, the charity has just one activity, which is the advancement of the Christian faith. Though this has a number of expressions, the charity's costs are very integrated and all expenditure is considered to be for just this one activity.
## d) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the PCC in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the PCC for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
## e) Tangible fixed assets
Consecrated and beneficed property is not included in these financial statements by virtue of s.10(2) of the Charities Act 2011. All expenditure on consecrated or beneficed buildings is written off in the year in which it is incurred.
Movable church furnishings held by the incumbent and Churchwardens on special trust for the PCC and which require a faculty for disposal are capitalised in accordance with the policy set out below. These items are regarded as inalienable property and are listed in the church's inventory which can be inspected at any reasonable time. Inalienable property acquired prior to 2000 has not been capitalised as there is insufficient cost information available.
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Freehold land Is not depreciated (because it is not consumed by use) Freehold buildings Over 50 years Equipment Over 4 years
The PCC has a policy of revaluing its properties periodically; the carrying values of the charity's properties are updated when it is believed that their values have changed significantly. Properties are valued at their estimated market value or, if this is not possible, at estimates of their value in use. Further information is given in note 8 'Tangible fixed assets'.
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
## f) Investments
Current asset investments are investments held for sale and comprise an investment property, which is included at its estimated market value (fair value) at the balance sheet date.
## g) Stocks
Stocks of goods purchased for re-sale are stated at the lower of cost and net realisable value.
## h) Taxation
The charity has taken advantage of various reliefs from taxation available to charities and no tax is payable on the charity's income.
## i) Financial instruments
- Except for the Church Commissioners' loan, the charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises the liability for the Church Commissioners' loan at fair value.
Page 1
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2 Accounting Policies continued**
## j) Critical accounting estimates and areas of judgement
ln preparing financial statements certain judgements, estimates and assumptions have to be made that affect the amounts recognised in the financial statements. The members of the PCC consider the following to be significant:
- a) the PCC have estimated the market values of the charity's properties and update these valuations when they believe that market values have changed materially. These valuations rely on the ability of the PCC to reliably estimate market values; they are also sensitive to changes in market conditions.
- b) the PCC have needed to assess the fair value of the Church Commissioners' loan referred to in note 13 'Amounts falling due after more than one year'. This estimate is sensitive to changes in the PCC's intentions for the property part financed by the loan and the market value of this property.
## **3 Donations and legacies**
|General donations
Tax recoverable
Legacies:
Bequeathed residential property
Cash legacies
Donations from The Bromley Christian Workers Trust
Donated services of staff
Donated use of equipment
Total income from donations and legacies|2023
£
191,144
42,483
-
174,105
407,732
271,000
5,335
276,335
684,067|2022
£
159,921
26,640
325,000
-
511,561
277,000
5,911
282,911
794,472|
|---|---|---|
During the year the charity was donated the services of the staff employed by The Bromley Christian Workers Trust and given the rent free use of audio visual equipment owned by Bromley Christian Workers Trust. The value of the donated services of staff has been included at £271,000 (2022: £277,000). In broad terms this represents the expenditure incurred by The Bromley Christian Workers Trust to employ its staff and provide them with accommodation (so that they can undertake their duties properly).
## **4 Income from charitable activities**
|Lunch Club
Lighthouse
Other charitable activities|2023
£
6,995
2,965
2,393
12,353|2022
£
6,948
2,476
2,852
12,276|
|---|---|---|
Page 1
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **5 Charitable expenditure**
|**a**
**Costs incurred directly on specific activities**
Donations in kind received from The Bromley Christian Workers Trust
Donated services of staff (see note 3 'Donations and legacies')
Donated equipment hire (see note 3 'Donations and legacies')
Ministry
Premises expenses
Diocesan Parish Share
Diocesan fees
Depreciation
Youth and Children
Lunch Club
Interest on Church Commissioners' loan
Missionary and charitable giving (see note 5c)
**b**
**Costs incurred on support & administration**
Governance costs
Independent examiner's fee for preparing and examining the accounts
Legal and professional fees
Other administrative expenses
**Total expenditure**
**c**
**Grants payable**
Grants for UK and overseas mission
Grants to relieve hardship
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
The charity's principal grants to institutions comprised:
Operation Mobilisation *
Interserve *
Crosslinks*
Diocese of Kondoa
All Saints Loose
SAT-7 UK Trust
Release International
Kent Gospel Partnership|Institutions
£
62,489
-
62,489
Institutions
£
71,915|2023
£
271,000
5,335
276,335
14,060
55,761
57,316
642
5,607
4,323
8,259
4,349
69,383
496,035
3,000
1,581
4,581
9,064
13,645
509,680
Individuals
£
5,894
1,000
6,894
Individuals
£
6,365
2023
£
24,307
14,688
12,185
4,500
-
4,157
2,004
648
62,489|2022
£
277,000
5,911
282,911
10,297
29,333
55,289
585
5,000
4,058
7,262
3,982
78,280
476,997
2,580
1,431
4,011
4,973
8,984
485,981
2023
£
68,383
1,000
69,383
2022
£
78,280
2022
£
22,344
14,424
10,992
12,000
5,350
4,157
2,000
648
71,915|
|---|---|---|---|
*being grants to institutions for the support of named individuals
## **6 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses**
The charity did not have any employees in either the current or the preceding year. No members of the PCC received employment benefits in either the current or preceding year. No staff received salaries at a rate of more than £60,000 per annum. Most of the charity's activities are carried out by volunteers.
The charity's key management comprise the members of the PCC named on the Charity Information page. Iain Broomfield received a stipend from the Diocese and so he was not an employee; some of the Parish Share paid to the Diocese was used to cover the cost of this stipend. As is customary, the PCC paid accommodation related expenses totalling £4,078 (2022: £4,370) in respect of Iain Broomfield. In addition during the year Luke Foster joined the clergy team and the PCC paid accommodation related expenses totalling £5,857 (2022: £nil) for him.
Page 1
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **7 Tangible fixed assets**
|Cost or valuation
At 1 January 2023
Additions in year
Reclassification of a property now held for sale (see note 10)
At 31 December 2023
Accumulated depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022||Freehold
for Church
Hall
(at valuation)
£
500,000
-
-
500,000
40,000
5,000
45,000
455,000
460,000|Freehold
Residential
Property
(at valuation)
£
807,500
-
(325,000)
482,500
17,500
-
17,500
465,000
790,000|Fixtures,
fittings and
equipment
(at cost)
£
21,483
2,422
-
23,905
21,483
607
22,090
1,815
-|Total
£
1,328,983
2,422
(325,000)
1,006,405
78,983
5,607
84,590
921,815
1,250,000|
|---|---|---|---|---|---|
The Church Hall was valued on a existing use basis on 31 December 2009, which produced a value that was believed to be similar to its open market value. The valuation was undertaken by Mr Stuart Gilbert (the then Treasurer and a member of the PCC) who had some relevant professional experience in this area. Subsequently, on 31 December 2014, this value was updated using indices for increases in market values in the Bromley area published by the Land Registry. The trustees do not believe that the value of the Church Hall has changed significantly since 31 December 2014.
The charity also owns two freehold residential properties. The first property was purchased in 1997 and was part financed by a loan from the Church Commissioners (see note 12); this property was revalued by the trustees in 2021 at £465,000 on the basis of the most recent offer made for a sale which was ultimately not carried through as the PCC took the property off the market. The second property was bequeathed to the PCC in the previous year; this property has been included at its probate value of £325,000. It has decided that the bequeathed property will be sold and so it is now reported as a current asset investment (see note 10).
## **8 Stock**
|Books purchased for re-sale, at cost
**9**
**Debtors**
Tax recoverable
Legacies receivable
Prepayments and other debtors
**10**
**Current asset investments**
Bequeathed property, which is to be sold
**11**
**Cash at Bank and in Hand**
Bank operating accounts
Bank deposits
Liquid investments (Diocese of Rochester)
Petty cash|2023
£
500
2023
£
13,611
35,000
3,372
51,983
2023
£
325,000
325,000
2023
£
47,999
297,508
964
476
346,947|2022
£
2,000
2022
£
1,633
-
1,342
2,975
2022
£
-
-
2022
£
35,444
153,429
937
463
190,273|
|---|---|---|
Page 1
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **12 Creditors: liabilities falling due within one year**
|Trade creditors
Accruals
Grant obligations
**itors: amounts falling due after more than one year**
Loan from Church Commissioners
Fair value of loan at the beginning of the year
Change in fair value during the year
Fair value of loan at the end of the year|2023
£
6,319
3,000
8,650
17,969
2023
£
191,000
-
191,000|2022
£
1,798
2,520
7,500
11,818
2022
£
191,000
-
191,000|
|---|---|---|
## **13 Creditors: amounts falling due after more than one year**
In 1997 the charity received a loan of £50,000 from the Church Commissioners to help the charity purchase its residential property; interest is payable on the loan and the loan is secured on this property. At the date of the property's acquisition the loan represented 40.984% of its value and the Church Commissioners are entitled to 40.984% of the sale proceeds when the property is sold. The amount due to the Church Commissioners is based on the carrying value of this property in these accounts (see note 7 'Tangible fixed assets').
## **14 Funds**
During the year the movements in the charity's funds were as follows:
|_Designated Funds_
Fixed Assets fund
Fixed Assets Revaluation Reserve
Lunch Club
_General Unrestricted Funds_
Total Unrestricted Funds
_Restricted Funds_
Donated Staff fund
Donated Equipment fund
Mission Beyond Bromley fund
Hardship fund
Equipment fund
Aggregate of funds|Opening
balance
2023
£
851,251
207,749
1,059,000
3,992
1,062,992
179,438
1,242,430
-
-
-
-
-
-
1,242,430|Income
2023
£
-
-
-
6,995
6,995
396,874
403,869
271,000
5,335
12,603
11,219
500
300,657
704,526|Expenditure
2023
£
(5,000)
-
(5,000)
(8,259)
(13,259)
(206,483)
(219,742)
(271,000)
(5,335)
(12,603)
(1,000)
-
(289,938)
(509,680)|Transfers
in the year
2023
£
(325,000)
-
(325,000)
(1,615)
(326,615)
326,615
-
-
-
-
-
-
-
-|Gains and
losses
2023
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-|Closing
balance
2023
£
521,251
207,749
729,000
1,113
730,113
696,444
1,426,557
-
-
-
10,219
500
10,719
1,437,276|
|---|---|---|---|---|---|---|
During the year:
- a) £325,000 was transferred from the designated fixed asset fund to general unrestricted funds after it was decided that the property bequeathed to the PCC in the previous year would be sold. To reflect this, the property has been moved from fixed assets to current asset investments.
- b) £1,615 was transferred from the designated Lunch Club fund to unrestricted general funds in respect of expenditure on capitalised kitchen equipment that has been largely purchased from funds set aside for the Lunch Club.
Page 1
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **14 Funds continued**
## **Analysis of net assets by fund**
The assets and liabilities of the various funds were as follows:
|Tangible fixed assets
Stock
Debtors
Investments held as current assets
Cash at bank and in hand
Creditors falling due within one year
Creditors falling due after one year
In the previous year the movements in the charity's funds w
Opening
balance
2022
£
_Designated Funds_
Fixed Assets fund
531,251
Fixed Assets Revaluation Reserve
207,749
739,000
Lunch Club
4,306
743,306
_General Unrestricted Funds_
166,593
Total Unrestricted Funds
909,899
_Restricted Funds_
Donated Staff fund
-
Mission Beyond Bromley fund
-
-
Aggregate of funds
909,899|ere as follows:
Income
2022
£
-
-
-
6,948
6,948
517,185
524,133
277,000
17,379
294,379
818,512|General
Designated
funds
funds
£
£
1,815
920,000
500
-
51,983
-
325,000
-
335,115
1,113
(17,969)
-
-
(191,000)
696,444
730,113
Transfers
Expenditure
in the year
2022
2022
£
£
(5,000)
325,000
-
-
(5,000)
325,000
(7,262)
-
(12,262)
325,000
(179,340)
(325,000)
(191,602)
-
(277,000)
-
(17,379)
-
(294,379)
-
(485,981)
-
Unrestricted Funds|Restricted
funds
£
-
-
-
-
10,719
-
-
10,719
Gains and
losses
2022
£
-
-
-
-
-
-
-
-
-
-
-|2023
£
921,815
500
51,983
325,000
346,947
(17,969)
(191,000)
1,437,276
Closing
balance
2022
£
851,251
207,749
1,059,000
3,992
1,062,992
179,438
1,242,430
-
-
-
1,242,430|
|---|---|---|---|---|
## **Analysis of net assets by fund**
In the previous year, the assets and liabilities of the various funds were as follows:
|Tangible fixed assets
Stock
Debtors
Cash at bank and in hand
Creditors falling due within one year
Creditors falling due after one year|General
Designated
funds
funds
£
£
-
1,250,000
2,000
-
2,975
-
186,281
3,992
(11,818)
-
-
(191,000)
179,438
1,062,992
Unrestricted Funds|Restricted
funds
£
-
-
-
-
-
-
-|2022
£
1,250,000
2,000
2,975
190,273
(11,818)
(191,000)
1,242,430|
|---|---|---|---|
## _Designated funds_
The aggregate balance on the **Fixed Assets** funds represents the net book value of the PCC's fixed asset properties less the outstanding balance on the loans received to help purchase one of the properties.
The **Lunch Club** fund relates to the activities of the church Lunch Club which is run weekly to provide fellowship and a meal at the church for retired persons.
Page 1
## **CHRIST CHURCH BROMLEY PCC**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **14 Funds continued**
## _Restricted funds_
The **Donated Staff** fund represents the services of staff donated by The Bromley Christian Workers Trust for specific roles within the overall ministry of the church.
The **Donated Equipment** fund represents the value to the PCC of the rent free use of audio visual equipment owned by The Bromley Christian Workers Trust.
The **Mission Beyond Bromley** fund was created from donations received to help support the charity's mission partners. The **Hardship** fund was created from donations received to help relieve material hardship amongst members of the church family. The **Equipment** fund was created from donations received to help replace equipment, which this year's donations being for the replacement of a boiler.
## **15 Operating lease commitments**
The charity has an operating lease for a residential property. The minimum amount payable in respect of this lease is as follows:
|Within one year
Between one and five years
After five years
Payments falling due:|2023
£
13,800
-
-
13,800|2022
£
-
-
-
-|
|---|---|---|
During the year the charity was charged £13,800 (2022: £nil) for its operating lease.
## **16 Transactions with related parties**
The PCC works closely with The Bromley Christian Workers Trust ('BCWT') (registered charity number 1183501) and, though neither charity controls the other, they share some trustees and BCWT is therefore considered to be a related party. From time to time, BCWT and Christ Church Bromley make grants to each other and support their respective charitable activities in other ways including donating the services of staff. The transactions with BCWT have been disclosed in the above notes.
During the year the charity received donations totalling £28,107 (2022: £21,150) from related parties (which includes members of the PCC, any other members of key management and anyone closely connected to them).
Except for the reimbursement of expenses incurred when acting as agent for the charity, or incurred when undertaking clergy duties, no expenses were paid to (or for) members of the PCC (2022: £nil).
Except as disclosed in note 6 'Analysis of staff costs', there have been no other transactions with related parties during the year.
## **17 Other matters**
The PCC has been reviewing its relationship with The Bromley Christian Workers Trust ('BCWT') and, based on legal advice received, they have approached the trustees of BCWT concerning past transactions. Following on from this the PCC and BCWT have agreed to reorder their relationship in 2024 as follows:
- a) the property owned by BCWT (which has is believed to have a market value of about £425,000) and most of its cash (about £125,000) will pass to the PCC.
- b) the employment of the Associate Vicar will pass to a newly formed charity controlled by the PCC and the employment of all other BCWT staff will pass to the PCC.
It is anticipated that, following these changes, many of BCWT's supporters will transfer their giving to the PCC. It is also likely that BCWT will make grants out of its future income to the PCC to help support the employment of the above staff.
Page 1