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2020-12-31-accounts

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Annual Report and

Financial Statements of the

Parochial Church Council of Emmanuel Church, South Croydon

for the year ended 31 December 2020

Registered Charity no 1132879

Vicar

The Revd J Adams (from September 2020) The Vicarage 33 Hurst Way South Croydon Surrey CR2 7AP

Church Office

Emmanuel Church Office Normanton Road South Croydon Surrey CR2 7AF

Telephone: (020) 8688 6676

Auditors

Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Bankers

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

National Westminster Bank 111 South End Croydon CRO 1ZY

Emmanuel Church, South Croydon

Annual Report for 2020

Aim and Purpose

The Parochial Church Council of Emmanuel Church, South Croydon (the “PCC”) has the responsibility of co-operating with the Vicar, the Revd John Adams, in promoting in the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. When planning our activities for the year, the Vicar, Associate Vicar and PCC have considered the Charity Commission’s guidance on public benefit.

Objectives and Activities

2020 has been dominated, both nationally and for Emmanuel Church, by the COVID-19 pandemic. Against this exceptional background, and potential for isolation, Emmanuel’s objective has been to focus on being connected: to God; to each other; and to our community. With severe restrictions in place throughout most of the year on being able to meet in groups, the church completely reshaped its activities - worship and prayer, community and ministry, outreach, and discipleship - into a “Church without walls”. “Church without walls” is a reminder that God and people are at the heart of “Church”, not bricks and mortar.

The Rev Ben Jones and the PCC established a 15-strong team which developed a plan of action to minister to the most vulnerable in the parish, provide pastoral and practical support to members of the local community, as well as maintain the church community, and its many groups and activities. There were seven workstreams: pastoral care, community, discipleship, prayer and worship, children, youth, and admin, all being supported and facilitated by a tech team.

Leadership

In February 2020, the Bishop of Southwark announced that the Rev John Adams had been appointed as the incumbent of Emmanuel Church. John was instituted and warmly welcomed as Vicar on 7 September. The PCC is immensely grateful to Ben Jones, the Associate Vicar, for his leadership during the interregnum.

Worship and Prayer

The church moved very quickly (within one week of the first lockdown being imposed) to being a fully online church, producing high quality online services watched by up to 4,100 people, with an average of approximately 700 devices each week to connecting with the 10am service. Live streaming of services was a significant development in the provision of online church, and enabled people to be feel part of a community worshipping and learning about God together. Worship and teaching for children continued through “Rock TV”, valued each week by 80 children, while our groups for older children and teenagers took place on a virtual basis over the course of Sunday.

In a small number of cases, where people were not able to access the technology required, the church provided CDs of the services and paper transcripts through the post. As well as the Sunday services, our worship has also included online toddler sing alongs, and Messy Church services held over Zoom.

As part of our Advent celebrations, the church building windows were lit up one-by-one every day, engaging our community through a visual portrayal of the Christmas story. Our online worship in December includeda traditional carol service (to which over 4700 devices connected), a “Thrill of Hope” on Christmas Eve, and an all-age Christmas Day service.

Our regular Evening Prayer reflective services continued online, with up to 100 devices engaging. We have also held regular “Prayer at the Centre” meetings via Zoom, as well as a series of other prayer events, enabling and encouraging personal and corporate prayer as “the engine room” for our church, community and wider world.

In the context of exploring more deeply what it means to be a genuinely multi-cultural church and community, we had a short series of sermons (and associated home group study material) on Conversations About Race.

The Electoral Roll was revised for the APCM in October 2020, consisting of 369 names, compared with 373 in the previous year. Because of the national restrictions, we only conducted 3 baptisms, and 6 weddings during the year. There were 3 funerals.

Community and Ministry

We regularly reminded ourselves during the year that Emmanuel Church is made up of over 550 people and sits in a Parish of 6,500 people, who could not be ignored or forgotten. The staff and ministry team organised themselves around target groups, ensuring that as many people within the church and the Parish could be connected with, including:

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Emmanuel Church, South Croydon

Children, Youth, 20-30s, Families, Seniors and those who were most vulnerable. Despite the challenges, the vast majority of our normal community and ministry activities continued, albeit largely remotely in most cases.

Ongoing weekly activities for youth and children included EYC and FNP, as well as school prayer events and services. Other groups catering for a range of ages encompassed Bumps and Babies, toddlers’ sing-along, 20s-30s, and 70s tea and chat. Lighthouse, a group for young adults with learning difficulties, and Selam, an initiative providing English language classes for women in the locality for whom English is not their first language, continued to meet online.

Pastoral care has been outstanding. The SPAs and pastoral team contacted all church members who were identified as being in the Government’s vulnerable groups. The church set up a pastoral support line, which people could ring if they were in need of food, medicine or prayer.

A particular emphasis has been on helping people to build and maintain relationships. For example, in the week after Christmas, a series of events including a thought for the day, quiz night, puzzle evening, virtual tea parties, and Desert Island Discs, all provided opportunities to get together. Similar initiatives have taken place regularly through the year.

Outreach The church has also made regular communication with its members a priority during the year. The Vicar has led the leadership team in producing a “Mid-week Memo” to complement the teaching in the Sunday Services, and these messages of hope and information sharing have been deeply appreciated. A weekly email update was sent to everyone on the church’s database every Friday. 3,500 leaflets were delivered across the Parish in June as part of our reaching out to the community.

Online courses such as Alpha and Christianity Explored have been appreciated by about 40 people and a number of people have attended who have little or no previous connection with Emmanuel Church. A number of people have made significant first steps of faith during these courses.

Discipleship

During the lockdown, the church has given significant emphasis to encouraging our discipleship. Emmanuel has continued to run its Home Groups via Zoom. There were opportunities to explore some of the Sunday sermons in a “Going Deeper” series, and we had an initiative to read through Mark’s Gospel as a church through the month of July. A short online course of “Discipleship Explored” in the autumn was appreciated by around 60-80 people across the church. As in past years, we formed a Rolling Stones group for those young people about to start secondary school. We also held a short Theology Course for teenagers, and preparation classes for those being admitted to communion for the first time.

Safeguarding

All of the above activities were carried out in accordance with a safeguarding policy approved by the PCC and which is in line with safeguarding policy guidance given by the Diocese of Southwark’s safeguarding officer. All group leaders and helpers involved with any activities with children or vulnerable adults undergo safeguarding checks as required by the policy.

Health and Safety

The operations and administrative staff of Emmanuel were kept extremely busy during the year, as they sought to make sense of rapidly changing Government guidance, to ensure that health and safety was kept paramount across the life of Emmanuel.

Global Mission

Emmanuel Church, South Croydon

communities. In 2020 this included two new organisations — A Rocha (a Christian global environmental conservation charity) and Langham Partnership (a mission organisation started by Rev John Stott which equips churches and church leaders in the majority world for mission and to preach the Bible).

All these activities mentioned in the review of the year were sustained by many volunteers who gave much time and energy. The PCC would like to express its thanks to all who volunteered their time so willingly, and who adapted so well to new ways of doing things.

Future Plans

As a parish church, our plan is to prayerfully continue to invest time, money and resources into sharing the Good News of Jesus and being a centre of prayer, worship, learning and pastoral care for all who live in the local community, or join us on line. We continue to develop plans to ensure that our ministry resources (people, buildings and facilities) are equipped to serve the developing mission and ministry of the church. As we respond to the impact of COVID-19, and prepare for the "new normal", we pray that all of our resources, including the newly developed on line resources, will be equipped to enable ministry and growth in faith and bring glory to the name of Jesus.

Financial and Operational Review

Operational Funds

The PCC wants our finances and how we account for them to reflect the fact that everything we do as a Church is missional. To help achieve this, the PCC focuses in particular on the aggregate position of its operational funds, i.e. the General fund plus the Mission fund, when considering our budgeting and financial decisions, while having regard for the correct treatment of restricted monies.

2020 Overview

The PCC set a budget for 2020 that anticipated a small surplus to contribute to reserves which had become low during the rebuilding of the Emmanuel Centre and to facilitate repairs to the Church premises. This still enabled us to sustain and support our ministry and mission.

The coronavirus pandemic, which hit in March, meant that while regular giving continued, income from events and oneoff donations reduced as the Church and Centre were closed for much of the year. Looking at income on a combined basis across the operational funds, we saw giving decrease by 6.5% year on year to £519,422 (2019: £555,717). Overall income decreased by 12.3% to £548,254 (2019: £624,889), with approximately half the reduction reflecting the closure of the Church and Centre to the public due to COVID-19. We have included a summary level comparative analysis of the aggregated operational funds as note 12 to the accounts.

General Fund

Voluntary giving to the General Fund (including tax recoverable) amounted to £505,325 in 2020, a decrease of 6.2% compared with 2019.

Income from Church and Emmanuel Centre lettings and church events and activities was lower than in 2019 as many events were cancelled after March. Most of the events that could take place, happened on-line and for free. One of the properties was let on a short-term basis while there is a vacancy, creating an income stream. Overall, income from all sources in 2020 of £534,157 was therefore 12.1% lower than in 2019, for the reasons noted.

Total expenditure in 2020 of £436,815 was 18.1% higher than in the previous year (2019: £370,004). However, 2019 expenditure included a write back of historic debt with the diocese and if this was excluded for a direct comparison, 2020 expenditure was 1.0% lower than in 2019. Some of the repairs planned for the church (such as replacement of cast iron guttering), could not be undertaken in year and this work will be undertaken in 2021.

Overall, income was greater than expenditure for the year by £97,342 in respect of the General Fund. However, after transfer of £57,884 from the General fund to the Mission fund to cover the global mission net expenditure, there is a surplus in the year of £39,458. The General Fund surplus for the year will be added to our accumulated funds.

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Emmanuel Church, South Croydon

Global Mission Fund

All grants from the fund are made by the Global Mission Committee, within guidelines approved by the PCC, primarily for the support of our own missionaries, home and overseas missionary societies and agencies, and other projects and appeals with which Emmanuel has connections. All grants over £1,500 are individually approved by the PCC other than those already pre-approved by the PCC for regular support.

Donations made specifically to the Global Mission Fund in 2020 (including gifts for specified mission partners and projects, and tax) totalled £14,097 (2019 £16,981), a decrease of 17.0%.

The amount distributed for mission purposes during the year was £78,488 (2019 £95,777). The 2019 figure included expenditure carried forward from 2018. The PCC approves the budget for global mission and allocates resources from general funds to meet those costs (to the extent they are not met by gifts that are specified for mission purposes). The balance in hand in the Global Mission Fund at 31 December 2020 of £10,196 (2019 £16,703) represents specified gifts received for individual mission partners and projects awaiting distribution and the legacy which is being retained for a future project.

Development Fund

The purpose of the Development Fund is to invest in people, projects and properties in furtherance of the Church’s ministry. The Development Fund currently consists of the three freehold houses owned by the PCC, the net assets of the Emmanuel Centre (transferred from the Hall Fund in 2020) and cash received from legacies.

Hall Fund

During 2020, the Church continued to receive gifts from the congregation who had pledged to fund the redevelopment of the Emmanuel Centre which opened in January 2018. In 2020, giving (including gift aid recovered) was £37,089 as people continued to honour their commitments to contribute over a 5-year period. The new fixed assets built and purchased by the fund have now been transferred into the Development fund.

At the year end, the value of interest free loans from parishioners totalled £8,000 (2019: £8,000) and the PCC had repaid all other borrowing.

Outlookfor 2021

The PCC has set an expenditure budget for operational funds in 2021 of £551,000, which, after allowing for the cost of repairs originally budgeted for in2020, is likely to result in a modest deficit after all repairs have been completed.

Reserves Policy

It is PCC policy to maintain, to the extent possible, a balance on unrestricted funds (excluding fixed assets) equating to between three and six months’ expenditure. Currently the reserves balance under the General fund are approximately seven months’ expenditure following a slow build up of reserves over the past few years.

However, including the Development fund, which is a designated fund but unrestricted, we have total reserves of £664,149 (excluding properties) as at 31 December 2020 (see note 9), which is the equivalent to sixteen months expenditure. The PCC continues to monitor this position and to engage with the congregation on its giving.

The balance on the Hall fund is £2,899 (2019: £1,418,268). The year-on-year reduction represents the transfer of assets into the Development fund.

The balance of £10,196 in the Mission Fund (a restricted fund) will be distributed by the Global Mission Committee in accordance with guidelines issued by the PCC.

It is PCC policy to place funds surplus to immediate requirements with the CBF Church of England Deposit fund.

Fundraising

In line with the new reporting requirements included in the Charities Act 2016, the Trustees can confirm that all fundraising is undertaken in compliance with best fundraising practice. All fundraising activities follow traditional methods which have been recognised as ethical for many years. During 2020 we did not employ any professional fundraisers. There were no complaints or criticisms during the year about our fundraising activities.

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Emmanuel Church, South Croydon

Risk Management

The PCC is responsible for considering the major risks to which the Church is exposed and for the systems and procedures designed to mitigate those risks. In this regard, PCC appointments include an Insurance Officer, a Safeguarding Officer and a Health & Safety Officer.

In 2009, the PCC established a team to conduct a formal risk review process and to prepare a risk register for the Church. As reported last year, the team met to consider risk areas under a number of key headings (for example, fabric, financial, and operational risks) and to assess: what the risks are, how likely they are to arise, what severity of impact they might have and what mitigations and controls exist. The specific risk factors highlighted as requiring attention are being progressed by the Standing Committee and the risk register is subject to periodic review and consideration by the Standing Committee. The Operations Manager is responsible for the risk register and health and safety throughout the church complexes.

The most significant risk factors relate to the Church’s fabric, its activities with young or vulnerable people, and its continuity of income. The team were satisfied that these risks are adequately and appropriately addressed through a combination of insurance, operating procedures and controls, and prudent budgeting and cash flow forecasting.

Personnel

Emmanuel is blessed with many committed volunteers, who alongside our staff team, run or assist in the running of the many activities that take place. During 2020, we have been particularly blessed by the hard work and creativity of a newly formed “Church without walls” team which was ably led by Matt King. This team enabled our on-line response to COVID -19. Emmanuel is thankful for this team which included a broad range of skills including sound and visual technicians that enabled activities to be effectively held online.

In 2020 the PCC received regular reports on the work and reach of “Church without walls”. Even in periods of full national lock down Emmanuel has remained a busy church and building on the success and experience of the “Church without walls” team, our organisation of personnel has necessarily adapted to enable new ways of working, support and leadership across activities:

The PCC from time to time reviews the needs and support required to run the many and varied activities of the church over and beyond those requirements of the normal weekly services. In order to facilitate the smooth running of these activities and to support the clergy in their work, the following paid roles were in place during 2020:

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Emmanuel Church, South Croydon

Continuing professional development is on-going for all full-time staff. Annual appraisals are undertaken for all staff by the relevant Line Manager.

Pay and remuneration of our clergy is determined and paid by the Diocese of Southwark. Pay and remuneration of other staff is determined by the PCC, with periodic benchmarking against similar roles and Diocesan pay awards. Annual Increments are linked directly to Diocesan increases.

Key Management Personnel are considered to be the PCC members and Clergy as they are in charge of directing, controlling, running and operating the church on a day to day basis. All PCC members give of their time freely and received no remuneration in the year. Details of PCC members’ expenses and related party transactions are disclosed in Note 11 to the financial statements. As noted above, the remuneration of the clergy is determined and paid by the Diocese.

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Emmanuel Church, South Croydon

Administrative Information

Parochial Church Council Membership

Members of the PCC are either ex officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. During the period 1 January 2020 to 19 May 2021, the date of this Annual Report, the following served as members of the PCC:

Vicar: The Revd John Adams (from September 2020) Associate Vicar The Revd Ben Jones Churchwardens: Wendy Riches Pete Burt (from April 2020) Chair of PCC David Lawton (to April 2020) Chair of PCC Members of Deanery Synod: Esther Barradell PCC Secretary Peter Gowlland (to April 2020) Alison Lawton (to October 2020) Mary Knight Richard Mash (from October 2020) Ranil Perera Wendy Riches Paul Waddell (from October 2020) Elected members: Sue Baker (to April 2020) Clare Buchanan (from October 2020) Peter Burt (to October 2020) Daniel Edwardson Susanne French (from October 2020) Paul Gulliford Treasurer (to October 2020) Carolyn Heath (from October 2020) Marlene Hinds Stephanie King Jonathan Mash Richard Mash (to October 2020) Julia Nunn Daniel Orazulume Linda Penn Rebecca Pickering Alastair Roseweir (from October 2020) Jeremy Sinclair (to October 2020) Rachel Smith (from October 2020) Helen Squires (from October 2020) Helen Taylor -Kelley Jan Wilson Rachel Warren (from October 2020) Garry Winterburn (to October 2020) Co-opted Members Peter Graystone (to September 2020) David Baxter (to October 2020) Paul Gulliford Treasurer (from October 2020)

Co-opted Members

Staff Team

The staff team consisted of:

The Vicar The Revd John Adams (from September 2020) Associate Vicar The Revd Ben Jones Youth Ministry Co-ordinator Mike Rutt Children’s Ministry Co-ordinator Becky Frost (to August 2020), Sheridan Lloyd (from September 2020) Page 7

Emmanuel Church, South Croydon

Music& Worship Co-ordinator Stuart Burke
Young Families Co-ordinator Clare Fillingham
Readers Anthony Blake, JeremyDavies, Andrew Gillam, Peter Graystone,
and Clive Lewis-Jones
Principal Organist RichardMash
SPAs Eileen Parsons, Carol Trower, and Liz David
Operations Manager Magdalena Zajaczkowska
Administrator JillBishop (fromJanuary 2020)
Safeguarding Officer Linda Penn
Safeguarding Administrator JaneMash
KeyManagementPersonnel
The Vicar The Revd John Adams (from September 2020)
Associate Vicar The Revd Ben Jones
PCCMembership(asabove)

Structure, Governance and Management

The PCC is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure.

The method of appointment of PCC members is set out in the Church Representation Rules. All Church attendees are encouraged to register on the Electoral Roll and may then stand for election to the PCC. All members of the PCC are Trustees in accordance with the requirements of the Charities Act 2011 (the “Act”). All new PCC members are appraised of their responsibilities as trustees under the definitions of the Act through meetings and training, and in particular through an extended briefing at the first meeting of each new PCC. Existing PCC members have been provided with training for Safeguarding children and vulnerable adults and this will be continued for new members. The PCC has appointed a number of Committees to assist in carrying out its aims and objectives. The Standing Committee is empowered to transact the business of the PCC between its meetings, subject to any directions given by the PCC. The Standing Committee keeps under review all matters of PCC business that are not delegated to other committees and advises the PCC accordingly.

The PCC appointed the following Committees:

Standing Human Resources Fabric Global Mission Finance

The PCC met for ordinary business seven times during 2020.

The PCC and all committees additionally operate under the guidelines of the Emmanuel Church Standing Orders updated October 2020.

RESPONSIBILITIES OF THE MEMBERS OF THE PCC

Charity Law requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Church and of the results for that year. In preparing those financial statements, the PCC is required to:

The PCC is responsible for keeping adequate accounting records which disclose, with reasonable accuracy at any time, the financial position of the Church, and to enable them to ensure that the financial statements comply with applicable Accounting Standards and Statements of Recommended Practice and the regulations under section 154 of the Charities

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Emmanuel Church, South Croydon

Act 2011. It is also responsible for safeguarding the assets of the Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the PCC

PILAR Chairman 19 May 2021

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Emmanuel Church, South Croydon

Independent auditor’s report to the members of the Parochial Church Council of Emmanuel Church, South Croydon

Opinion

We have audited the financial statements of the Parochial Church Council of Emmanuel Church, South Croydon (the “PCC”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the PCC’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Emmanuel Church, South Croydon

Independent auditor’s report to the members of the Parochial Church Council of Emmanuel Church, South Croydon (continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the PCC and its environment obtained in the course of the audit, we have not identified material misstatements in the PCC members’ report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of the PCC members

As explained more fully in the PCC members’ responsibilities statement, the PCC members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

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

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to employment, financial reporting legislation and health and safety regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.

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Emmanuel Church, South Croydon

Independent auditor’s report to the members of the Parochial Church Council of Emmanuel Church, South Croydon (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

We determined that the principal risks were related to management bias in accounting estimates, presentation of separately disclosed items, migration of financial data between proprietary software systems and management override of controls.

In response to the risks identified we designed procedures which included, but were not limited to identifying and testing journal entries, challenging significant accounting estimates such as depreciation of tangible fixed assets, agreeing financial statement disclosures to underlying supporting documentation, testing opening balances at the date of transfer to the new accounting system, reviewing PCC meeting minutes and evaluating the charity’ internal controls.

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditor’s report.

Use of our report

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

Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountants

5 Robin Hood Lane Sutton Surrey SMI 2SW

Dated: .2&/o8] 2021

Jacob Cavenagh & Skeet is eligible for appointment as auditor of the PCC by virtue of[its][eligibility] for appointment as auditor ofa company under section 1212 of the Companies Act 2006.

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Emmanuel Church, South Croydon

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BALANCE SHEET
at 31 December 2020
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||||||| |---|---|---|---|---|---| |Note|2020|2019| |£|£| |FIXED|ASSETS| |Tangible|fixed|assets|5|2,717,916|2,766,605| |CURRENT ASSETS| |Debtors|6|101,135|99,750| |Cash|at bank and|in|hand|636,720|571,324| |737,855|671,074| |CREDITORS:|amounts|falling due within|j|(47,534)|(48,512)| |one|year| |NET CURRENT ASSETS|690,321|622,562| |TOTAL NET ASSETS|3,408,237|3,389,167| |FUNDS| |Unrestricted:|General Fund|9|309,201|269,743| |Development|Fund|9|3,072,864|1,671,376| |Restricted:|Mission|Fund|9|10,196|16,703| |Hall|Fund|9|2,899|1,418,268| |Small Funds|9|13,077|13,077| |TOTAL FUNDS|3,408,237|3,389,167|

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Approved on behalf of the Parochial Church Council on 19 May 2021 and signed by:

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WVf fsfi) ,f
Y v |
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Peter Burt Chairman

Paul Gulliford

Treasurer

Page 14

Emmanuel Church, South Croydon

STATEMENT OF CASH FLOWS for the year ended 31 December 2020

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|||||||||| |---|---|---|---|---|---|---|---|---| |2020|2019| |£|£|£|£| |Cash|provided by operating|activities|(note below)|64,281|76,705| |Cash|flows|from|investing|activities| |Interest|received|1,115|1,263| |Proceeds|from sale|of Tangible|fixed|assets|-|640,591| |Cash|provided by/(used|in)|inves|ting|activities|1,115|641,854| |Cashflows|from|financing|activities| |Cashflows|from new borrowing|-|(455,000)| |Net|cash|inflow (outflow)|65,396|263,559| |Cash|and|cash|equivalents|at|1*' January|__571,324|||__307,765 _| |Cash|and cash|equivalents|at|31st|December|636,720|571,324| |Note:|Cash|flows|from|operating|activities| |Net income/(expenditure)|19,070|329,099| |Interest|receivable|included|in|investing|activities|(1,115)|(1,263)| |Depreciation|48,689|48,690| |(Gain)/loss|on|fixed|assets|-|(126,591)| |Decrease/(increase)|in|debtors|(1,385)|(75,429)| |(Decrease)/Increase|in|creditors|(978)|(97,801)| |Cash|provided by operating|activities|64,281|76,705|

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Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

  1. ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with the Church Accounting Regulations 2016 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). Emmanuel Church, South Croydon meets the definition of a public benefit entity under FRS 102, is a corporate body established by the Church of England, and a registered charity in England and Wales no. 1132879, The Church Office is at Emmanuel Church Normanton Road, South Croydon, CR2 7AF.

The accounts have been prepared under the historical cost convention. The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body nor those that are informal gatherings of Church members.

The financial statements are prepared in sterling, which is the functional currency of the church. Monetary amounts in these financial statements are rounded to the nearest pound.

Going concern

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

Funds

The financial statements include transactions, assets and liabilities for which the PCC can be held responsible. They do not include the accounts of church groups that owe an affiliation to another body nor those that are informal gatherings of church members; nor do they include the accounts of church groups under the control of the PCC but where the amounts are considered to be immaterial.

Income

Donations and legacies: Voluntary income and donations (including legacies) are accounted for once the church has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the church for its use, these are capitalised at the estimated market value at the date of the gift and included under income.

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

Expenditure Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Charitable expenditure includes all support costs in respect of the church’s activities. Grants: Grants and donations are accounted for when paid over or when awarded if that creates a binding obligation on the PCC.

Church activities: These costs are accounted for when payable.

Governance costs: These comprise expenditure on compliance with statutory legal requirements and are included in Church activities.

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Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

Fixed assets

Consecrated land and buildings and movable church furnishings: Consecrated land and beneficed property is excluded from the accounts by s.10 (2)(a) of the Charities Act 2011. No value is placed on movable church furnishings held by the churchwardens on special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property. All expenditure incurred during the year on consecrated or beneficed buildings and movable church furnishings, whether maintenance or improvement, is written off.

Other land and buildings: Other land and buildings held on behalf of the PCC for its own purposes are included at historic cost. Freehold land is not depreciated.

Where the charity adopts a policy of maintaining properties to a standard that prolongs their lives and enhances their residual value, the PCC considers any depreciation arising to be insignificant and the properties are not depreciated. In other cases, where the buildings do not satisfy these criteria, they are depreciated over 50 years.

Assets in the course of construction are not depreciated until they are ready for use. Expenditure on maintenance is written off as incurred.

Other fixtures, fittings and office equipment: Equipment used is depreciated on a straight-line basis over 5 to 8 years. Individual items of equipment with a purchase price of £5,000 or less are generally written off in the period in which the asset is acquired.

Debtors

Income tax recoverable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash and cash equivalents

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. Concessionary loans are included at historic cost.

Financial instruments

The Church only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 17

Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

  1. INCOME FROM:

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |UNRESTRICTED|FUNDS|RESTRICTED|FUNDS|TOTAL FUNDS| |Global| |General|Development|Mission|Hall|Small| |Fund|Fund|Fund|Fund|Funds|2020|2019| |£|£|£|£|£|£|£| |Donations|and|[legacies]| |Gift|aid|donations|344,570|1,000|9,308|paerg|al|-|382,649|442,334| |Tax Inclusive|Donations|22,714|-|250|-|-|22,964|29,495| |Income|tax recoverable|89,452|250|2,604|8,878|-|101,184|107,120| |Donations|48,589|-|1,935|440|-|50,964|59,989| |Legacies|a|s|s|=|Pe|2|"7| |Grants|Received|-|-|-|-|-|-|8,500| |505,325|1,250|14,097|37,089|-|557,761|647,438| |Investments| |Bank|interest|1,115|-|-|-|-|1,115|1,263| |1,115|-|-|-|-|1,115|1,263| |Charitable|activities| |Church|and|hall lettings|13,450|-|-|-|-|13,450|24,597| |Wedding|and|funeral|fees|3,244|-|-|-|-|3,244|8,924| |Income|fromchurch|events|and|activities|9,179|-|-|-|-|9,179|33,594| |25,873|-|-|-|-|25,873|67,115| |Other|sources| |Rental|income|from non-investment|properties|1,844|-|-|-|-|1,844|794| |Profit on|sale|of|[fixed]|[assets]|-|-|-|-|-|-|126,591| |1,844|-|-|-|-|1,844|127,385| |TOTAL INCOME|534,157|1,250|14,097|37,089|-|586,593|843,201|

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Page 18

Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

3 EXPENDITURE ON:

UNRESTRICTED UNRESTRICTED FUNDS RESTRICTED FUNDS RESTRICTED FUNDS RESTRICTED FUNDS TOTALFUNDS TOTALFUNDS
Global
General Development Mission Small
Fund Fund Fund HallFund Fund Funds 2020 2019
£ £ £ £ £ £ £
Charitable Activities
Missionary and chantable giving
Support of Own Missionaries (Note 11) - - 21,473 - - 21,473 36,431
Regularly Supported Societies (Note 11) - - 24,275 - - 24,275 22,686
Special Appeals and Projects (Note 11) - - 32,740 - - 32,740 36,660
- - 78,488 - - 78,488 95,777
Diocesan contribution 196,000 - - - - 196,000 107,131
Staff salaries 125,252 - - - - 125,252 131,967
Music and Worship 25,286 - - - - 25,286 10,642
Ministry Expenses 2,924 - - - - 2,924 10,934
Activity Expenses 5,759 - - - - 5,759 15,298
Staff Expenses 3257 - - - - 3,257 6,196
Administration Expenses 10,261 73 - - - 10,334 11,095
Church Running Costs 34,751 - - - - 34,751 36,219
Centre Running Costs 12,624 43,130 - - - 55,754 59,337
Church Houses Running Costs 14,845 9,017 - - - 23,862 18,115
Govemance Costs: Audit Fees 4,320 - - - - 4,320 4,560
Other costs 1,536 - - - - 1,536 6,831
436,815 52,220 - - - 489,035 418,325
TOTAL EXPENDITURE 436,815 52,220 78,488 - - 567,523 514,102
4.
STAFF COSTS
2020 2019
& £
Wages and Salaries 121,108 119,540
Social Security Costs 1,447 6,610
Pension Contributions 2,135 2,021
124,690 128,171
  1. STAFF COSTS

Staff costs shown above are included in Note 3 within the heading of “Staff salaries”. The average headcount for employees employed by the Church during the year was 6 (2019: 6). There were no employees whose emoluments exceeded £60,000 (2019: none). No redundancy payments were made during the year (2019: £1,953).

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Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

5. FIXED ASSETS FOR USE BY THE PCC

FreeholdLand
andBuildings Equipment Total
£ £ £
COST
at 1 January 2020 2,826,801 123,672 2,950,473
Additions - - -
Disposals - = -
at 31 December2020 2,826,801 123,672 2,950,473
DEPRECIATION
Previously stated at 1 January 2020 84,420 99,448 183,868
Charge forthe year 42,24] 6,448 48,689
at 31 December2020 126,661 105,896 232,557
NETBOOKVALUE
at 31 December2020 2,700,140 17,776 2,717,916
at31December2019 2,742,381 24,224 2,766,605

The freehold land and buildings comprise the church houses at 12 Hurst View Road, 5 Wells Close, 35 Whitmead Close and the Emmanuel Centre.

6. DEBTORS

DEBTORS
2020 2019
£ £
Income taxrecoverable 100,075 92,853
Other debtors & Prepayments 1,060 6,897
101,135 99,750

Te CREDITORS: amounts falling due within one year

CREDITORS: amounts falling due within one year
2020 2019
£ £
Funds held onbehalf
ofaffiliated groups		 8,605 8,604
Accruals and Other Creditors 30,929 31,908
Loans forEmmanuel Centre 8,000 8,000
47,534 48,512

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Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

The Concessionary Loans for Emmanuel Centre in note 7 comprised an interest free loan from a member of the congregation to support the redevelopment of the Emmanuel Centre and bridge the temporary cash shortfall arising where pledges to support the project were made over a number of years.

  1. COMMITMENTS

Emmanuel leases a photocopier. The lease has three years remaining and the payments fall due as follows:

2020 2019
£ £
Amounts falling due within year 912
Amounts falling due between 2 to 5 years 1,748 2,660
2,660 3,572
Lease payments of£912 (2019: £912) were made during the year.
9.
ANALYSIS OF NET ASSETS BY FUND
UNRES TRICTED RESTRICTED
2020 ra
conei
un		 i
arial
un		 Global
Mission
Fund		 HallFund Small
Ponds		 Total
£ £ £ £ £ £
Tangible fixed assets 11,545 2,706,371 - - - 2,717,916
Debtors 90,668 250 2,604 7,613 - 101,135
Cash at bankand in hand 241,662 371,103 7,592 3,286 13,077 636,720
332,330 371,353 10,196 10,899 13,077 737,855
Creditors:amounts fallingduewithinone
year		 (34,674) (4,860) - (8,000) - (47,534)
Cash held for other funds = . = - > fe
Net current assets 297,656 366,493 10,196 2,899 13,077 690,321
Netassets 309,201 3,072,864 10,196 2,899 13,077 3,408,237

The Development Fund comprises the church’s property, assets and cash (typically received from legacies) designated to invest in people, projects and properties in furtherance of the Church’s ministry.

The Global Mission fund comprises funds given for the support of our own missionaries, regularly supported societies and other special appeals and projects as detailed in Note 11.

The Hall Fund comprises funds raised between 2016 and 2020 towards the specific purpose of redeveloping our church hall (the Emmanuel Centre). In 2020, the assets of the Hall fund were transferred to the Development fund now that the Centre is in use.

Small Funds comprises grants from the diocese to support groups at Emmanuel (Lighthouse and Caterpillars).

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Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

UNRES TRICTED RESTRICTED
2019 Tr
um		 os
m		 Global
Mission
Fund		 HallFund me Total
£ £ £ £ £ £
Tangible fixed assets 17,104 714,861 - 2,034,640 - 2,766,605
Debtors 95,157 - 2,656 1,937 - 99,750
Cash
atbankand in hand		 204,719 309,790 14,047 29,691 13,077 571,324
299,876 309,790 16,703 31,628 13,077 671,074
Creditors: amounts fallingduewithin one
year		 (40,512) - - (8,000) - (48,512)
Cash held forotherfunds (6,725) 646,725 - (640,000) - -
Net current assets 252,639 956,515 16,703 (616,372) 13,077 622,562
Netassets 269,743 1,671,376 16,703 1,418,268 13,077 3,389,167
  1. RELATED PARTY TRANSACTIONS

Apart from the items disclosed below, there were no disclosable transactions in respect of members of the PCC, persons connected with them or other related parties. No PCC members received remuneration. One member of the PCC received reimbursement of £909 (2019: two members received a combined £3,244) for ministry expenses.

No expenses were paid to third parties on behalf of the PCC (2019: £nil).

Members that served on the PCC during the year gave a total of £114,060 (2019: £111,894) to the General fund, £2,764 (2019: £1,340) to the Global Mission fund and £1,816 (2019: £710) to the Development Fund. The PCC made a grant of £3,250 from the Mission fund to The Salmon Youth Centre, a charity of which the spouse of one of our PCC members, Mary Knight, is a Trustee. The PCC made a grant of £3,250 from the Mission fund to International Needs, a charity of which one of our PCC members, Wendy Riches, is a Trustee. The PCC made a grant of £1,000 from the Mission fund to Kick London, a charity of which one of our PCC members, Pete Burt, is a Trustee. The PCC made a grant of £20,285 from the Mission fund to Simon French, a missionary supported by the church. He is the spouse of Susanne French, a PCC member. Total remuneration of Key Management Personnel amounted to £nil (2019: £nil). Members of the close family of the Key Management Personnel received salary of £nil (2019: £nil), employers’ contributions of £nil (2019: Enil).

Page 22

Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

  1. DETAILS OF GLOBAL MISSION FUND GRANTS

TOTAL

2020 2019
Ss £
Support ofOwn Missionaries
Simon French 20,285 27,961
DeeAmeyaw 1,188 8,470
21,473 36,431
Regularly SupportedSocieties
Christian Family Concem 8,675 5,250
TEARFund 5,125 4,250
Church Pastoral Aid Society 2,625 3,250
FEBA Radio 2,625 3,250
Open Doors 2,625 3,436
Fusion 1,300 1,625
Universities & Colleges Christian Fellowship 1,300 1,625
24,275 22,686
Special Appeals andProjects
SU CIS — Tajikistan 7,000 6,175
Croydon Refuge Day Centre (CTBC Project) 3,500 1,000
Salmon Youth Centre 3,250 2,750
Egypt Diocesan Association 3,250 2,250
InternationalNeeds —Egypt Project 3,250 1,500
Students at Ugandan Theological Colleges 2,300 4,450
Ruth Kade Ministry - South Sudan 1,250 -
Croydon Community Against Trafficking 1,000 1,000
EvangelicalAlliance —Advocacy Programme 1,000 1,000
KickLondon 1,000 -
Other gifts and grants 5,940 7,809
Emmanuel Christian College, South Sudan (South Sudan Bible School) - 2,650
St Francis Church Youth Worker - 2,250
Contributions to members ofcongregation on short-term projects - 1,550
Moldova camps and projects - 1,276
Tearfund— Overseas Relief - 1,000
32,740 36,660
78,488 95,777

Grants made in 2020 included £3,799 (2019: £7,579) from gifts received which were specified by donors for particular mission partners or projects.

No grants were made from the Small Funds or Development Fund in 2020 (2019: Enil).

Page 23

Emmanuel Church, South Croydon

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020

12. OPERATIONAL FUNDS

The table below shows the aggregate position on the General and Mission funds and is provided to help provide users of the accounts with a more representative and useful picture of the operational position of the church’s finances

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|||||||||| |---|---|---|---|---|---|---|---|---| |2020|2019| |£|£| |INCOME (See|also|note|2)| |Voluntary|income|519,422|555,717| |Investment|income|1,115|1,263| |Income|from charitable|activities|25,873|67,115| |Income|from other sources|1,844|794| |TOTAL INCOME|548,254|624,889| |EXPENDITURE (See|also|note|3)| |Diocesan|contribution|196,000|107,131| |Staffing|costs|125,252|131,967| |Missionary|and|charitable|giving|78,488|95,777| |Other|ministry|and|activity|and|events|costs|33,969|36,874| |Property|costs|62,220|70,541| |Support|and|govemance|costs|19,374|28,214| |TOTAL EXPENDITURE|515,303|470,504| |NET MOVEMENT|IN|FUNDS|32,951|154,385|

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  1. DEFINED CONTRIBUTION PENSION SCHEME

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost and charge represents contributions payable by the charity to the fund and amounted to £2,134 (2019: £2,021).

Page 24