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2021-12-31-accounts

Charity Registration No. 1133078

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

LEGAL AND ADMINISTRATIVE INFORMATION

Incumbent Rev T J Harvey Lay Reader Mrs H Hopper PCC Members Mr P Gilmore Mrs H E Hopper Mrs E Clemo Miss A Ducker Mrs J Gilmore Mr S G Auster Mrs M G Tiffin Miss R J Bell Mr R H Toth Mrs P Dunn Mrs S Graham Rev T J Harvey Miss C Port Wardens Mrs E Clemo Miss A Ducker Mrs J Gilmore Treasurer Mrs H Hopper Charity number 1133078 Principal address Market Place Darlington Co Durham DL1 5QG Independent examiner Deborah Fletcher-McVay ACA Kenneth Easby Limited Chartered Accountants Oak House, Market Place Bedale North Yorkshire DL8 1AQ

(Appointed 9 May 2021) (Appointed 31 May 2021) (Appointed 21 April 2021)

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

CONTENTS

Page
PCC Members report 1 - 3
Independent examiner's report 4 - 5
Statement of financial activities 6
Balance sheet 7
Notes to the accounts 8 - 17

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

PCC MEMBERS REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The PCC members present their annual report and financial statements for the year ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Parochial Church Council's Parochial Church Council Powers Measure (1956) as amended and Church Representation Rules, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Objectives and activities

The objects are:

The PCC members have paid due regard to guidance issued by the Charity Commission in deciding what activities the Parochial Church Council should undertake.

The PCC has the responsibility of co-operating with the incumbent in promoting this purpose. It also has maintenance responsibilities for St Cuthbert's Church.

Achievements and performance

A 3rd National Lockdown due to Covid began in January. St. Cuthbert's was closed for Sunday worship but it was possible to open on Wednesday mornings for private prayer and Morning Prayer. Funerals were allowed for up to 30 people. Sunday services and PCC meetings were held on 'Zoom'. The hall was also closed during this time. The church re-opened on 14th March for Sunday services; Wednesday services had continued throughout.

Following the Wednesday morning opening of church we have noticed an increase numbers from approximately 6 - 8 to 20 - 22 who have continued to attend.

We were in vacancy until the installation of the Rev James Harvey on 21 April, 2021 as Priest in Charge of St. Cuthbert's and Holy Trinity churches.

Work on the clock began to replace numerals, and the Friends' of St. Cuthbert's gave a donation towards the cost.

During Lent we had an appeal for 'A Tent for Lent' which was very successful.

The Community outreach group organised a Spring Walk which attracted 20+ people to take part.

Our Easter services were a joyous occasion and included Baptising an asylum seeker during the service on Easter Eve. The Rev Dr Alastair Prince took our services from Palm Sunday to Easter Day and were very well attended.

Mrs Joan Gilmore was appointed as Safeguarding Officer on 8 June 2021.

The church was open from 30 May to the end of September each day for visitors.

The church/hall caretaker resigned on 12 May. A new caretaker Mr P Bairstow was appointed in September 2021.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

The Rev Canon David Tomlinson met with the Futures Group to advise us that the Church Commissioners' Strategic Development Fund had identified St. Cuthbert's as a future 'Resourcing Church'. This is a very exciting development which will if it comes to fruition enable St. Cuthbert's to reach out to the town. The Stage 1 bid was successful, the final Stage 2 bid is due May 2022.

We held a service of Thanksgiving for the town hosted by the Mayor, Cllr Cyndi Hughes in September.

Choral Evensong resumed in October on the 2nd Saturday in the month at 5 pm. This is to attract a new community, refreshments are served after the service and a meal in the town is offered to encourage new participants. The choir is open to anyone who would like to sing and has proved very popular.

We held a Quiet Morning on 4 December at Brancepeth church which was led by Bishop Sarah (Jarrow) and

was very much appreciated.

Christmas celebrations were enjoyed once more, the Carol service was well attended, as was the Christingle service. It was good to be back to some normality. Cards were distributed as usual.

Financial review

Total income on unrestricted funds was £72,902 and unrestricted expenditure amounted to £82,664. This expenditure figure includes £28,792 for the contribution to the Diocese, which largely provides the stipends, pensions, training and housing for the Clergy. The overall decrease in unrestricted funds was £9,762.

The restricted fund increased by £10,759 due to income of £9,038, related expenditure of £26,113 and gains

on investments of £27,834.

The unrestricted fund balance at 31 December 2021 amounts to £58,860 (2020 - £58,622) and the restricted

fund balance was £291,591 (2020 - £290,832).

It is the policy of the Parochial Church Council that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The PCC members consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Parochial Church Council’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Structure, governance and management

The constitution is that of the Constitution of The Church of England, which can be found in "A Handbook for Churchwardens and Parochial Church Councillors" (Mowbray ISBN 0-264-67411-1).

Members of the PCC are either ex officio or elected by the Annual Parochial Church Meeting in accordance with the Church Representation Rules. The PCC members who served during the year and subsequently were:

Mr P Gilmore Mrs H E Hopper Mrs E Clemo Miss A Ducker Mrs J Gilmore Mr S G Auster Mrs M G Tiffin Miss R J Bell Mr R H Toth Mrs K Bryant Mrs P Dunn Mrs S Graham

(Deceased 5 April 2021) (Appointed 9 May 2021) (Appointed 31 May 2021)

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

PCC MEMBERS REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Rev T J Harvey (Appointed 21 April 2021) Miss C Port

The PCC operates through a Standing Committee, which can meet between full meetings of the PCC. It is the only committee required by law. It has power to transact the business of the PCC between meetings, subject to any directions given by the Church Council.

The Parish of St Cuthbert's Darlington is part of the Diocese of Durham within the Church of England. It is situated within the Deanery of Darlington and Auckland Archdeaconry.

The PCC members report was approved by the Board of PCC Members.

Rev T J Harvey

PCC Chairman Dated: 12 April 2022

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

INDEPENDENT EXAMINER'S REPORT

TO THE PCC MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

I report to the PCC members on my examination of the financial statements of The Parochial Church Council of The Ecclesiastical Parish of St Cuthbert's Church, Darlington (the Parochial Church Council) for the year ended 31 December 2021.

Responsibilities and basis of report

As the PCC members of the Parochial Church Council you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Parochial Church Council’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Your attention is drawn to the fact that the charity has prepared accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 that in any material respect:

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

INDEPENDENT EXAMINER'S REPORT (CONTINUED)

TO THE PCC MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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 financial statements to be reached.

Deborah Fletcher-McVay ACA

Kenneth Easby Limited Chartered Accountants Oak House, Market Place Bedale North Yorkshire DL8 1AQ

Dated: .........................

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted Restricted Total Total
funds funds
2021 2021 2021 2020
Notes £ £ £ £
Income and endowments from:
Donations and legacies 2 53,092 3,360 56,452 73,427
Charitable activities 3 15,801 - 15,801 11,382
Other trading activities 4 3,997 - 3,997 1,051
Investments 5 12 5,678 5,690 5,824
Other income 6 - - - 2,632
Total income 72,902 9,038 81,940 94,316
Expenditure on:
Charitable activities 7 82,664 26,113 108,777 81,576
Net gains/(losses) on investments 10 - 27,834 27,834 13,077
Net (outgoing)/incoming resources before
transfers (9,762) 10,759 997 25,817
Gross transfers between funds 11 10,000 (10,000) - -
Net movement in funds 238 759 997 25,817
Fund balances at 1 January 2021 58,622 290,832 349,454 323,637
Fund balances at 31 December 2021 58,860 291,591 350,451 349,454

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

All income and expenditure derive from continuing activities.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
Fixed assets
Investments 12 212,297 202,463
Current assets
Debtors 13 8,145 5,023
Cash at bank and in hand 545,641 551,969
553,786 556,992
Creditors: amounts falling due within
one year 14 (415,632) (410,001)
Net current assets 138,154 146,991
Total assets less current liabilities 350,451 349,454
Income funds
Restricted funds 15 291,591 290,832
Unrestricted funds 58,860 58,622
350,451 349,454

The financial statements were approved by the PCC Members on 12 April 2022

Mrs H E Hopper Trustee

Rev T J Harvey Trustee

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

1 Accounting policies

Charity information

The Parochial Church Council of The Ecclesiastical Parish of St Cuthbert's Church, Darlington is an unincorporated charity.

1.1 Accounting convention

The accounts have been prepared in accordance with the Parochial Church Council's Parochial Church Council Powers Measure (1956) as amended and Church Representation Rules, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The Parochial Church Council is a Public Benefit Entity as defined by FRS 102.

The Parochial Church Council has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements are prepared in sterling, which is the functional currency of the Parochial Church Council. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain fixed asset investments. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the PCC members have a reasonable expectation that the Parochial Church Council 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.

1.3 Charitable funds

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

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

1.4 Incoming resources

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

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

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

1 Accounting policies

(Continued)

Income from charitable activities includes grants received from the Heritage Lottery Fund and Durham County Community. This income is recognised when the charity is entitled to the grant. The remaining charitable activity income is recognised when receivable by the charity.

Other trading activities income is recognised when receivable by the charity.

Investment income, in the form of investment interest, is recognised when receivable by the charity.

Other income represents government grants from staff furloughed which is recognised when receivable by the charity.

1.5 Resources expended

Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services.

1.6 Fixed asset investments

Investments represent investment fund balances held by the charity which are measured according to the value of the fund at the balance sheet date. Changes in fair value are recognised in net income/ (expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Heritage assets

The Church and Church Hall are not included on the balance sheet of the charity as at 31 December 2021. Both buildings are unique in terms of religious and historical significance. As such a suitable cost or valuation is not available and such information cannot be obtained without undue cost or effort.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

2 Donations and legacies

Unrestricted Unrestricted Restricted Restricted Total Total Total
funds funds 2021 2020
£ £ £ £
Donations and gifts 52,092 3,360 55,452 73,427
Legacies receivable 1,000 - 1,000 -
53,092 3,360 56,452 73,427
For the year ended 31 December 2020 55,927 17,500 73,427
Donations and gifts
Planned giving 31,532 - 31,532 35,019
Income tax recovered through Gift Aid 9,952 - 9,952 9,704
Collections 4,087 - 4,087 4,216
Offertory box 778 - 778 329
Donations at services 5,743 - 5,743 6,659
Church fabric fund - 500 500 -
Clock fund - 2,700 2,700 17,500
General fund - 160 160 -
52,092 3,360 55,452 73,427
Charitable activities
2021 2020
£ £
Fees 7,882 6,255
Magazine 362 304
Charitable rental income 7,557 4,823
15,801 11,382
Analysis by fund
Unrestricted funds 15,801 11,382

3 Charitable activities

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

4 Other trading activities

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising events 645 344
Sundry trading income 3,352 707
Other trading activities 3,997 1,051
Investments
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Interest receivable 12 5,678 5,690 99 5,725 5,824
Other income
2021 2020
£ £
Government grants - 2,632

5 Investments

6 Other income

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

7 Charitable activities

2021 2020
£ £
Insurance 10,400 10,980
Church running expenses 12,550 11,043
Church maintenance 2,979 2,413
Magazine costs 579 627
Sundry expenses 3,532 3,092
Church hall running expenses 9,136 12,733
Organist and choir 4,950 5,407
Diocesan Quota 28,792 17,040
Stationery and copier 1,463 1,255
Clergy expenses 1,441 439
Salaries and fees 5,308 4,773
Church fabric fund - restricted 5,046 1,200
Clock fund - restricted 20,719 8,610
General fund - restricted 348 514
107,243 80,126
Support costs 1,534 1,450
108,777 81,576
Analysis by fund
Unrestricted funds 82,664 71,252
Restricted funds 26,113 10,324
108,777 81,576

Support costs includes fees payable to the Independent Examiner of £1,534 (2020 - £1,450) for independent examination, accountancy and payroll fees.

8 PCC Members

None of the PCC members (or any persons connected with them) received any remuneration or benefits from the Parochial Church Council during the year (2020: £Nil).

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

9 Employees

Number of employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Caretaker 1 1
10 Net gains on investments
2021 2020
£ £
Revaluation of investments 27,834 13,077

11 Transfers

A £10,000 transfer was made from the restricted Clergy fund to the charity's unrestricted fund to contribute towards the Diocesan quota which increased by £11,752 in the year.

12 Fixed asset investments

Trust funds
£
Cost or valuation
At 1 January 2021 202,463
Valuation changes 27,834
Disposals (18,000)
At 31 December 2021 212,297
Carrying amount
At 31 December 2021 212,297
At 31 December 2020 202,463

13 Debtors

Debtors
2021 2020
Amounts falling due within one year: £ £
Other debtors 8,145 5,023

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

14 Creditors: amounts falling due within one year
2021 2020
£ £
Other creditors 413,222 408,601
Accruals and deferred income 2,410 1,400
415,632 410,001

Deferred income is recognised in relation to wedding deposits and grant income received in advance.

Included within other creditors is £405,013 (2020 - £404,973) due to the Poor Moor Charity Fund for monies held on their behalf.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST CUTHBERT'S CHURCH, DARLINGTON

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

16 Analysis of net assets between funds
Unrestricted Restricted
Total
Unrestricted
Restricted

Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Fund balances at 31
December 2021 are
represented by:
Investments
-
212,297 212,297 - 202,463 202,463
Current assets/
(liabilities)
58,860
79,294 138,154 58,622 88,369 146,991
58,860 291,591 350,451 58,622 290,832 349,454

17 Related party transactions

There were no related party transactions during the year (2020 - none).