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2021-12-31-accounts

THE PAROCHIAL CHURCH COUNCIL OF St STEPHEN and St THOMAS

LONDON W12

Registered Charity No. 1133759

REPORT OF THE TRUSTEES and

FINANCIAL STATEMENTS

for the Year Ended 31[st] December 2021

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St Stephen and St Thomas Church

ANNUAL REPORT

for the Year Ended 31[st] December 2021

Charity Details

Name: St Stephen and St Thomas Church Registered charity number: 1133759

Principal Address: St Stephen’s Vicarage 1 Coverdale Road Shepherd’s Bush London W12 8JJ

Independent Examiner

Alistair I. Wem BSc. FCA Wem & Co Chartered Accountants Savoy House Savoy Circus London W3 7DA

Bankers

St Stephen and St Thomas

HSBC plc 21 Kings Mall King Street London W6 0QF

Administrative information

The Parochial Church Council (PCC) is constituted under the Parochial Church Councils (Powers) Measure 1956 as amended, as the body charged with running the activities of the Parish church and promoting in the parish the whole mission of the Church. The Parochial Church Council is registered as a charity with the Charity Commission. The registered number is 1133759, and the date of registration was 26 January 2010.

The Parish of St Stephen and St Thomas is one of 20 Parishes in the Deanery of Hammersmith and Fulham, which is in the Area of the London Diocese under the Bishop of Kensington. The Kensington Area contains the 5 Boroughs of the Archdeaconry of Middlesex.

The correspondence address is St Stephen’s Parish Office, 1 Coverdale Road, London, W12 8JJ.

The Parochial Church Council met six times during the year. Members of the PCC are either ex officio, elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules, or co-opted. PCC members who have served from the 1st January 2020 to the date this report was approved are:

Incumbent : Rev Denis Adide

Ex Officio members of the Parochial Church Council: Churchwardens : Barry Clarke, Charles Wood Deanery Synod Representatives : Adrian James

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St Stephen and St Thomas Church 2020 Annual Report & Financial Statements

School Foundation Governors: Alex Legge

Other Elected members (from April 2021) : Shereen Bedassee, Damien Pattinson, Jessica Marshall, Mauricio Karam, Karen Hall, Juliet Byford, Damien Lardoux, Oliver Cantor, Lilia Aysatulina, Rebecca Faber, Nadine Talalla, Rebecca Ellis, Suzi Maskell.

Deputy Churchwardens : Rebecca Ellis, Charles Wood, Natalia Cassel, Rebecca Faber Co-Treasurers : Femi Ladeinde,

Safeguarding Officer : Alex Seaborne

Electoral Roll Officer : Shelly Nixon

Independent examiner : Alistair Wem, Wem & Co, Savoy House, Savoy Circus, London W3 7DA Bankers : HSBC, 21 Kings Mall, King Street, London W6 0QF

Structure, governance and management

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 stand for election to the PCC.

The PCC Standing Committee meets as necessary between full meetings of the PCC. The Standing Committee is required by law; it has the power to transact the business of the PCC between its meetings, generally when immediate decisions or authorities are required. The Standing Committee is composed of the Incumbent, the Churchwarden and deputy wardens, the Lay Vice Chair, the School Foundation Governor and the Treasurer.

Objectives and Activities

The primary object of the PCC is to promote the Gospel of our Lord Jesus Christ according to the doctrines and practices of the Church of England. The PCC for the Parish of St Stephen and St Thomas has the responsibility of co-operating with the Vicar in promoting in the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical.

At St Stephen and St Thomas, the parish has responsibility for the church, the church hall, a key worker flat (Glebe Flat, 1A Coverdale Road, W12 8JJ), currently let, and a house (35 Bloemfontein Avenue, W12 7BJ), also currently let.

Review of the year, 2021

In the Parish

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St Stephen and St Thomas Church 2020 Annual Report & Financial Statements

we started a Toddler group in the morning on Wednesdays and a youth group which meets on Friday evenings.

The challenges for the year for 2021-22

The main challenges for the forthcoming 2 years remain the same. These are that the financial outlook for St Stephen’s hinges on two main things. The first is the strength and sustainability of its income/fundraising streams, and the second is the assessment of whether that income matches the core and aspirational mission objectives.

Traditionally, St Stephen’s has been able to sustain its mission, serving the community in Shepherd’s Bush through prayer and acts of service. Our partnership with other organisations has also allowed for fruitful mission to happen at a lower financial cost. However, the increase in church attendance numbers over the previous decade coupled with the flourishing of the neighbouring school means that mission has had to take a new shape: what we do as a church is now increasingly more financially demanding than in previous years.

These challenges, however, were exacerbated and complicated by the impact of the Covid-19 pandemic. Over the course of the year with multiple national lockdowns, the makeup and mixture of income/fundraising has changed with a drop in income such as Church Hall hiring but an increase in Charitable giving from parishioners.

The challenge, therefore, lies in even more careful analysis of what specific areas of the wider mission of the Church we need to focus our investment in, in order to tactfully grow in a sustainable way. A secondary aspect of this is the assessment of the cost of such focuses in their various phases with a view to further developing our income stream/fundraising capacity to match and assessing whether this makeup has changed in a permanent way.

2022-23 will need us to strengthen our stewarding and fundraising so that growth in the congregation can also be reflected in regular giving so that our missional aspirations can be matched.

Electoral Roll and Worship numbers

The electoral roll (2021 revision) numbers 178 Worship Numbers : 107 (Average attendance)

Sunday School Attendance Numbers : 60 (Average attendance)

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St Stephen and St Thomas Church 2020 Annual Report & Financial Statements

Financial Review

During 2020 congregational giving reached a new level as Parishioners generously took on the responsibility of increasing their giving to make up the shortfall in other Church income due to the impact of the Covid-19 pandemic. Over 2021, the cumulative increase began to plateau and we have endeavoured to encourage the growing congregants to give. The Parish continues to benefit from income received through the HMRC Gift Aid scheme, and church also claim for Gift Aid Small Donations (GASDS) payments. Amounts owed to us by HMRC in respect of pending claims for net payments received, are included within these accounts as part of “Debtors”.

The income from church hall lettings slowly grew after the extended periods of national lockdowns and restricted social interactions. One of the challenges we face is to maximise this over 2022. The rental income from our investment property at 35 Bloemfontein Avenue, remained strong with the property being re-let at the start of the year following the departure of the previous tenants.

Fundraising towards the cost of major roof repairs at St Stephen’s continued with a variety of activities throughout the year. Upon reaching an intermediate target of £120,000 the Parish was eligible to seek funding support from relevant grant-awarding bodies.

Our Common Fund payment to the Diocese of London represents our most significant item of regular expenditure. For the 2021 financial year, we agreed, a Common Fund contribution of £58,200.

Reserves policy

It is PCC policy to try to maintain a balance on unrestricted funds, which equates to approximately six months unrestricted payments, to cover emergency situations that may arise from time to time. This is equivalent to £67,000. It is held to smooth out fluctuations in cash flow and to meet emergencies. As at 31/12/21, the cash balance held on unrestricted funds (including designated funds), together with the amounts payable to and by the PCC was £47,002 which is under this target. A decision was taken by the PCC to utilise a portion of the reserves to temporarily cashflow a portion of the costs on the Roof Repair Project. On signature date of this report, the balance has been increased by £5,000 to £52,000.

It is PCC policy to invest funds earmarked for St Stephen's Hall, and for the church’s roof restoration fund with the CBF CofE Deposit Fund through CCLA Investment Management Ltd. The funds belonging to the EW Wright Endowment are mainly invested in a bank deposit account; the funds belonging to the Mission Hall Charity are invested in the CBF CofE Investment Fund through CCLA Investment Management Ltd.

Approved by the Parochial Church Council and signed on its behalf by:

Rev Denis Adide, Chair Date: Oct 25, 2022

Original signed copy retained on file.

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St Stephen and St Thomas Church 2020 Annual Report & Financial Statements

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

OF THE PAROCHIAL CHURCH COUNCIL OF

St STEPHEN and St THOMAS

The charity's trustees are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the Act”).

The charity’s trustees consider that an audit is not required for this year under section 144 of the Act and that an independent examination is needed.

It is my responsibility to:

Independent examiner’s statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

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.

Signed:

Date:

………………………………….. ……………………………….

Alistair I. Wem BSc. FCA Wem & Co Chartered Accountants Savoy House, Savoy Circus London W3 7DA

Original signed copy retained on file.

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

Statement of Financial Activities

Unrestricted Designated
Restricted Endowment
2021
2020
funds
funds
funds
funds
funds
total funds
Income and endowments from:
Donations and legacies
Income from charitable activities
Other trading activities
Investments
Other income
Total income
Expenditure on:
Raising funds
Expenditure on charitable activities
Total expenditure
Net income / (expenditure) resources before
transfer
Transfers
Gross transfers between funds - in
Gross transfers between funds - out
Other recognised gains / losses
Gains / losses on investment assets
Gains on revaluation, fixed assets, charity's own use
Net movement in funds
Total funds brought forward
Total funds carried forward
81,521



81,521
68,312
21,556



21,556
17,941
9,106

118,485

127,591
42,795
26,166



26,166
34,631






138,349

118,485

256,833
163,679






149,098

347,780

496,878
127,849
149,098
0
347,780
0
496,878
127,849





-10,749
0
-229,295
0
-240,045
35,830

0
0
0
0
20,976

0
0
0
0
-20,976
0
0
0
0
0
0
0
3311

0

0

-10,749
0
-229,295
0
-240,045
39,141





2,397,780
28,000
181,984
11,033
2,618,795
2,579,655
2,387,031
28,000
-47,311
11,033
2,378,751
2,618,796

The notes on pages 8 to 16 form part of these accounts

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

BALANCE SHEET at 31[st] DECEMBER 2020

Note
2021 2020
Fixed assets
Tangible assets
Current assets
Debtors
Investments
Cash at bank and in hand
Liabilities
Creditors: Amounts falling due in one year
Net current assets less current liabilities
Total assets less current liabilities
Total net assets less liabilities
Represented by
Unrestricted
General fund
STST 35 Bloe.Ave/Hall/Rooms/Glebe
Designated
35 Bloem Ave refurbishment fund 2018
Restricted
St Stephen Roof Fund
St Stephen's Film Club
STST E W Wright
STST Misson Hall
Agency collection
Endowment
STST E W Wright
STST Misson Hall
Funds of the church
2,308,000
2,308,000
2,308,000
2,308,000
22,271
13,898
3,793
3,795
48,998
296,465
75,063
314,157
4,312
3,362
4,312
3,362
70,751
310,795
2,378,751
2,618,795
2,378,751
2,618,795
9,907
76,324
2,321,456
2,321,456
28,000
28,000
0
173,571
4,066
4,122
6,475
6,475


(2,185)
(2,185)
11,032
11,032

2,378,751
2,618,795

Approved by the Parochial Church Council and signed on its behalf by:

Rev. Denis Adide, Chair Date: Oct 25, 2022

Original signed copy retained on file.

The notes on pages 8 to 16 form part of these accounts

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

St Stephen and St Thomas

Notes to the Financial Statements

for the year ended 31[st] December 2020

1 ACCOUNTING POLICIES

1.1 Basis of financial statements

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared under the Church Accounting Regulations 2006, in accordance with 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) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and 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 Charities SORP (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The parish of St Stephen and St Thomas constitutes a public benefit entity within the meaning of FRS 102. The financial statements include all transactions, assets and liabilities for which the trustees are responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor to those that are informal gatherings of church members.

The presentation currency of the financial statements is Pounds Sterling (£)

1.2 Assets

Consecrated and benefice property

In so far as consecrated and benefice property of any kind is excluded from the statutory definition of ‘charity’ by Section 10(2) (a) and (b) of the Charities Act 2011 such assets are not capitalised in the financial statements.

Moveable church furnishings

These are capitalised at cost and depreciated over their useful economic life other than where insufficient cost information is available. In this case the item is not capitalised, but all items are included in the Church’s inventory in any case.

Tangible fixed assets for use by charity

These are capitalised if they can be used for more than one year, and cost at least £500. Electrical and electronic equipment is depreciated on a straight-line basis over 4 years; all other assets are depreciated at 15% on a reducing balance basis.

Investments

Investments quoted on a recognised stock exchange or whose value derives from them are valued at market value at the year-end. Other investments assets are included at PCC’s best estimate of market value.

Short term deposits

These are the cash held on deposit either with the CCLA or at the bank.

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

1.3 Fund Accounting

Unrestricted Funds are funds that are available to be spent on the trustees’ general purposes in furtherance of the objectives of the charity.

Designated Funds are general funds set aside by the trustees for use in the future. Designated funds remain unrestricted, and the trustees may move any surplus to other unrestricted funds. The purpose of each designated fund is shown in Section 6(b) of these notes.

Restricted Funds comprise revenue donations or grants for a specific activity intended by the donor. Any balance within a particular restricted fund remaining at year-end is carried forward within that fund. The aim and use of each individually-material restricted fund is set out in Section 6(c) of these notes.

Endowment Funds comprise funds given to the trustees for longer-term retention rather than immediate spending. According to the donor’s intention at the time of the gift, the capital may be permanent (normally held indefinitely) or expendable (subject to a discretionary power to spend capital as income). Depending on the terms of the gift, income derived from the capital either may be spent on unrestricted purposes at the discretion of the trustees, or must be spent on specific purposes restricted by the donor. Full details of all such restrictions are shown in in Section 6(d) of these notes.

1.4 Incoming Resources

In principle, incoming resources are recognised when:

  1. the trustees become legally entitled to the benefit of use of the resources;

  2. their ultimate receipt is probable; and

  3. The monetary value can be measured with sufficient reliability.

Planned giving, collections and similar donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is received. Investment income is accounted for when receivable. Grants and legacies are accounted for when the Trustees are entitled to the use of the resources, their ultimate receipt is considered reasonably certain, and the amounts due are readily quantifiable. Rental income arising from the letting of church premises and property is recognised when due. All incoming resources are accounted-for gross.

1.5 Resources Expended

All expenditure is accounted for on an accrual basis. Grants and donations are accounted for when paid over, or when awarded if that award creates a binding or constructive obligation on the trustees. The Diocesan Common Fund contribution expected to be paid over is accounted for when due. All other expenditure is generally recognised when it is incurred and is accounted-for gross.

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

INCOME AND ENDOWMENTS

Donations and legacies
Gift Aid - Bank
Gift Aid - Envelopes
Giving through church boxes
One-off Gift Aid gifts
Tax recoverable on Gift Aid
Other funds generated
Total
Income from charitable activities
Fees funerals
Baptisms,Banns and weddings
Church hall lettings - objectives
Film Club Fund
Beulah Church
Total
Other trading activities
Rent from Glebe Flat
ST ST Roof fund raising
Events in Church
Refund Elec/Gas
Total
Investments
Dividends
Bank and building society interest
Rent 35 Bloemfontein Ave.
Total
Total
Unrestricted Designated
Restricted
Endowment
2021 2020
47,902



47,902
57,995




0
20
906



906





0
1136
9,580



9,580
8,747
23,133



23,133
81,521

0

81,521
67,898




0
414
650



650
260
20,906



20,906
14,792




0
1,389




0
1,500
21,556

0

21,556
18,355
8,550



8,550
7,400


118,485

118,485
35,320




0
38
556



556
37
9,106

118,485

127,591
42,795




0

66



66
1,031
26,100



26,100
33,600
26,166

0

26,166
34,631
138,349
0
118,485
0
256,835
163,679
INCOME TOTAL

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

EXPENDITURE

Expenditure on charitable activities
Ministry parish share etc
Salary of parish administrator
Salary of service assistant
Salary of childrens worker
HMRC PAYE/NIC - Salary Costs
Parish training and mission
Church running - insurance
Church office - telephone
ChurchSuite costs
Organist fees
Church maintenance
Cleaning Hall
Cleaning Church
Upkeep of services
Administration
Church running - electric
Church running - gas
Church running - water
Church running - rubbish collection
Hall running - electricity
Hall running - gas
Hall running - insurance
Hall running - maintenance
Hall running - Suppplies
Governance costs examination/audit fee
Church major repairs - structure
PCC 35 Bloem.Ave upkeep(Willmotts)
Film Club Hospitality
Total
Total
Unrestricted Designated
Restricted
Endowment
2021 2020
58,200



58,200
58,200
7,361



7,361
2,392
7,925



7,925

2,250



2,250

1,283



1,283






60
3,504



3,504
3,647
376



376
598
794



794
726
4,041



4,041
4,311
4,456



4,456
2,856
5,260



5,260
3,760
3,120



3,120
2,360
12,870



12,870
724
2,108



2,108
6,701
1,695



1,695
795
5,540



11,080
6,006
1,244



1,244
1,243
247



247

2,127



2,127
1,861
5,540





3,504



3,504
3,647
3,143



3,143
60
754



754

1,200



1,200
1,200


347,724

347,724
19,800
10,555



10,555
6,557


56

56
346
149,097
0
347,780
0
496,878
127,849
EXPENDITURE TOTAL 149,097
0
347,780
0
496,878
127,849
GRAND TOTAL -10,748
0
-229,295
0
-240,043
35,830

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

4 STAFF COSTS AND EMPLOYEE BENEFITS

The Parish had three employees over the course of 2021, a Parish Administrator, a Service Assistant and a Children’s Worker.

Apart from the above and duties performed by unpaid volunteers, services were provided to the PCC by individuals acting as self-employed contractors, as follows:

St Stephen & St Thomas

Church and Church Hall cleaning

Church Hall bookings

Parish administration

Organ playing and musical direction

5 RELATED PARTIES

No other payments, expenses, or other benefits were granted to any PCC member, persons closely connected to them, or related parties.

Donations from related parties (PCC members) included £12,950 in the form of planned congregational giving and £1,522 specifically given to the St Stephen’s Church Roof Fund.

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

6 FUNDS

6(a) Summary of Fund Movements 2021

Opening
Incoming
Outgoing
Transfers Gains/losses
Closing
BloemAve18 - 35 Bloem Ave refurbi
Designated
Sub-total for BloemAve18
General - General fund
Unrestricted
Sub-total for General
Roof - St Stephen Roof Fund
Restricted
Sub-total for Roof
OpenCin - St Stephen's Film Cl
Restricted
Sub-total for OpenCin
35BAveH - STST 35 Bloe.Ave/Hal
Unrestricted
Designated
Sub-total for 35BAveH
Wright - STST E W Wright
Restricted
Endowment
Sub-total for Wright
None - Agency collection
Restricted
Sub-total for None
Grand total
28,000




28,000
28,000




28,000
76,324
138,350
204,766


9,908
76,324
138,350
204,766

0
9,908
173,571
118,485
292,056
0
0
0
173,571
59,597
292,056
0
0
0
4,122
0
56


4,066
4,122
0
56

0
4,066
2,321,456




2,321,456





2,321,456




2,321,456
6,475




6,475
11,032




11,032
17,508




17,508
-2,185




-2,185
-2,185




-2,185
2,618,795
197,947
496,878

0
2,378,751

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

6(b) Designated Fund Details

The purpose of each of the designated funds is set out in this section.

STST35 Bloemfontein Avenue,

This fund has been set aside for the purposes of maintenance and upgrading of the property.

STST Fair Value Fund

This fund is designated for movement in fair value of property and is not distributable.

6(c) Restricted Fund Details

The purpose of each of the individually-material restricted funds is set out in this section.

St Stephen’s Film Club Fund

This fund represents donations and grants received for the purpose of setting up and running a Film Club at St Stephen’s for the benefit of marginalised groups such as the elderly and homeless.

St Stephen’s Roof Fund

This fund represents funds raised (and eventually) grants received for the purposes of complete renewal of the main roof at St Stephen’s Church.

STST E W Wright Fund

This fund contains income received from the E W Wright endowment.

STST Mission Hall Fund

This fund contains income received from the Mission Hall endowment.

6(d) Endowment Fund Details

STST E W Wright Fund

This is an expendable endowment fund containing a legacy received from the estate of EW Wright during the 1960s intended for the purpose of funding interior decoration of St Stephen’s church building. Use of the income received from the capital is restricted to the stated purpose. At the discretion of the PCC, part or of the capital may be used as income to be spent on the same purpose.

STST Mission Hall Fund

This is a permanent endowment fund containing the assets of the “Charity for a Mission Hall, in the Ecclesiastical Parish of St Stephen with St Thomas, Shepherd’s Bush, in the London Borough of Hammersmith, regulated by conveyance dated 5[th] June 1917”. The object of this Charity is to fund or contribute towards the provision of land or buildings to be used for furthering the religious and other charitable work of the Church of England in the Parish. The PCC is the appointed managing trustee of the Charity.

During 2020, the Diocese granted permission for these restricted funds to be transferred and put towards the funding of the works on the Church roof.

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St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

7 FIXED ASSETS

7(a) Tangible Assets

le Assets
35 Bloemfontein Avenue
Glebe Flat, Church Hall &
Rooms
Total Tangible Assets
2021
2020
Gain /Loss
2020
£
£
£
£
850,000
850,000
0
850,000
1,458,000
1,458,000
0
1,458,000
2,308,000
2,308,000
0
2,308,000

The value of the investment property at 35 Bloemfontein Avenue was obtained by valuation carried out by the PCC’s contracted property manager in 2016.

The Glebe Flat and Church Hall & Rooms are contiguous assets within the curtilage of St Stephen’s Church, and are church property.

The comparative values for the revalued fixed assets have been adjusted in accordance with FRS 102.

15

St Stephen and St Thomas Church 2021 Annual Report & Financial Statements

8 CURRENT ASSETS

8(a) Debtors (Unrestricted funds)

As at 31/12/21, the trustees were due to receive the following amounts to which they were entitled in relation to 2020 and 2021 activities:

St Stephen & St Thomas
HMRC Gift Aid claim for 2020
HMRC Gift Aid Claim for 2021
35 Bloemfontein Avenue rent
Total Debtors
2021
2020
£
£
6,810
6,810
9,580
5,881
7,088
£22,271
£13,898

9 LIABILITIES

9(a) Amounts falling due in one year (Unrestricted funds)

Independent Examiner’s fees
Cleaners’ fees
Parish & Hall Administration
Glebe Flat deposit
Vicar Expenses
Agency payments
Total Liabilities
2021
2020
£
£
1,000
1,000
700
700
690
662
950
402
570
1,000
£4,312
£3,362

Agency payments are monies held within Parish bank accounts that have been collected or aggregated on behalf of other organisations pending remittance. Such monies, which typically include charitable collections and fees payable to the Diocese, are not part of Church funds.

16

St Stephen and St Thomas Church 2021 Annual Report & Financial Statements