St Michael and All Angels
Charity Number 1133778
Annual Report and Financial Statements Year ended 31 December 2022
Index
| 2 3-6 7 8-9 10 11-25 |
Charity Information Trustees' Annual Report Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements |
|---|---|
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St Michael and All Angels
Charity Number 1133778
Charity Information
Charity: The Parochial Church Council of the Ecclesiastical Parish of St Michael & All Angels Blackheath Park SE3
Trustees (Parochial Church Council [PCC] members):
Vicar: Representatives on the Deanery Synod: Rev. Alexander Christie (Chair) Louise Hall (resigned August 2022) Stephen Hingston Gregory Smye-Rumsby Reader: Khai Vualnam
Reader:
John Clark (Chair from September 2022)
Wardens: Other e lected members: Clare Bartram Christopher Ashworth (appointed May 2022) Jonathan Causer Richard Bolton (appointed May 2022) Charlotte Chiew (appointed May 2022) Joe Crisp-Hihn (appointed May 2022) Simone Foster (appointed May 2022) Matthew Hall (resigned May 2022) David Harrison David Hawkett Heather Heiner Margaret Holland (resigned May 2022) Amanda McTavish Tim Peters (resigned May 2022) Hugh Ridsdill-Smith (appointed May 2022) Christine Sellick Carolyn Watkins Administrator: Marion Lane Charity Number: 1133778 Governing Document: Parochial Church Councils (Powers) Measure 1956 Church Representation Rules 2020 Registered Office: 1 Pond Road SE3 9JL Independent Examiner: Archie McDowall BA, CA Stewardship 1 Lamb’s Passage London EC1Y 8AB Bankers: CAF Bank Ltd Lloyds Bank plc National Westminster Bank plc
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St Michael and All Angels
Charity Number 1133778
Trustees' Annual Report For the year ended 31 December 2022
The trustees of St Michael & All Angels (The Parochial Church Council of the Ecclesiastical Parish of St Michael & All Angels Blackheath Park SE3) are pleased to present their report together with the financial statements, for the year ended 31 December 2022.
Objects of the charity
The charity is responsible for co-operating with the incumbent, in promoting in the ecclesiastical parish, the whole mission of the Church be it pastoral, evangelistic, social, or ecumenical. The PCC is also responsible for maintaining certain church property situated within the parish, namely the church, halls, bungalow, and storage area within our grounds.
Main activities and achievements
The trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
The church‘s work in advancing the Christian faith is done primarily through weekly services, through marriage, baptism, and funeral services, and through pastoral work within the parish. The public benefit is achieved through enhancing the spiritual well-being of the beneficiaries.
The church’s work in relieving poverty is done primarily through gifts to other charities, working both within and outside the UK, and through activities in the local community. The public benefit is achieved through the delivery of material, social, and spiritual benefits to beneficiaries.
The church’s work in advancing education is done by systematic teaching of the Bible each Sunday to adults and young people. The public benefit is achieved because such teaching is open to all.
Services
Our normal pattern is that we provide both morning and evening services on Sunday, including the monthly 9.00 am Book of Common Prayer Holy Communion service, which is led by Rev Adam Scott, a retired clergyman with Permission to Officiate, as well as weddings, baptisms, and funerals. We have continued to provide recorded online morning services throughout the year.
Incumbent
Rev Sandy Christie retired as vicar on 31 August after 19 years’ service to St Michael’s, and the church entered a period of vacancy, which we hope will end in 2023.
Pastoral Care
The vicar has been committed to providing pastoral care throughout the parish as needed, and members of the pastoral team also care for members of the congregation. Carolyn Watkins, commissioned as a Southwark Pastoral Auxiliary, serves as the pastoral minister, and oversees a pastoral team of volunteers which meets regularly. Pastoral care is also provided through the home group structure in which some 65 members are involved.
Youth ministry
The church employs a part-time Youth Minister, Lauren Crisp-Hihn, who is responsible for the work with young people, ages 11 – 18, which normally includes the Friday night youth café, midweek coffee group and youth home group.
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St Michael and All Angels
Charity Number 1133778
Trustees' Annual Report For the year ended 31 December 2022
Halls
The church administrator, who works part time, has an office in the halls and takes responsibility for their upkeep, as well as ensuring the welfare of hall users. The halls, a major community resource, are normally very well used day and night during the working week and on Saturday, being only for church use on Sundays. The level of usage of the Halls has returned to 2019 levels as the impact of the Covid pandemic has eased.
World Focus
The church gives 10% of its general income (excluding halls income) to mission, which we call World Focus. Through World Focus we support five primary agencies: Bible Society, Church Mission Society, Crosslinks, OMF International, and Greenwich Youth for Christ. These agencies receive consistent financial and prayer support from the church. In addition we have three personal missionary links: in Ukraine (CMS), Ethiopia (Crosslinks), and in Japan (OMF), the link with Ethiopia being newly established. The war in Ukraine has concentrated our attention on that country during 2022.
Landscape
During the year we completed the project to redevelop the former garage on the north side of the halls and to build a new store and bin area. The landscape design group started to develop plans for the area to the east of the main hall but this was suspended in autumn 2022 due to time pressures in the vacancy.
Volunteers
The majority of the work of the church is undertaken by volunteers. Other than the work done by stipendiary clergy (who are paid by the Diocese) and our three part-time staff (administrator, youth minister, and church cleaner) most work is done by volunteers. This includes home Bible study groups, the website, the flower team, acting as Children’s Church teachers and assistants, running services through the stewarding team, audio visual team, readers, and music group, as well as leading and preaching, the finance team, the maintenance team, the pastoral team, the prayer ministry, Food Bank collections, the Art Gallery, organising social events, the Advent Fair, and our annual Holiday Club. It is impossible to place too high a value on such work.
Structure, Governance, and Management
St Michael and All Angels was registered as a charity on 26 January 2010, having existed as a church since 1830.
Members of the PCC are either ex officio or elected by the Annual Parochial Church Meeting in accordance with the Church Representation Rules.
The trustees normally meet 9 times a year. Day-to-day management of the church is undertaken by the Vicar and the staff team, comprising the curate, youth minister, pastoral minister, and administrator. The trustees delegate detailed financial matters to the Treasurer and Deputy Treasurer, and to the Standing & Finance Committee, which meets 10 times a year. Other bodies with delegated spending powers are the Church Halls Management Committee and the World Focus (mission) Team.
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St Michael and All Angels
Charity Number 1133778
Trustees' Annual Report For the year ended 31 December 2022
St Michael and All Angels is a parish church within the Diocese of Southwark, and within the local Episcopal area of Woolwich, in the Deanery of Charlton. It is also accountable to the Archdeacon of Lewisham and Greenwich.
The church is linked to the Southwark Diocesan Evangelical Union and is a member of the Evangelical Alliance.
The trustees have recognised their responsibility for the management of risk, have identified risk factors, estimated their potential impact on the church, and taken the necessary steps to manage these risks. In particular they have appointed two Safeguarding officers, a Health and Safety officer, and a Fire Risk officer.
Financial Review
Total income for the year amounted to £381k (2021: £317k); of which £281k (2021: £250k) was within General Fund, £73k Halls Fund (2021: £52k), £4k PRISM Fund (2021: £6k), £1k Hardship Fund (2021: £1k), World Focus Fund £10k (2021: £6k), Travel Fund £5k (2021: nil), Choir Fund £4k (2021: nil) and Special Collections £3k (2021: £2k). The increase in total income of £64k is within General Fund £31k, Halls Fund £21k, World Focus Fund £4k, Travel Fund £5k, Choir Fund £4k and Special Collections £1k. Total expenditure for the year amounted to £322k (2021: £275k) which is an increase of £47k on last year. The increase is explained by higher landscaping costs £14k, repairs £7k, choir costs £5k, and other costs £21k.
The church’s contribution to the Diocese through the Parish Support Fund was £84k (2021: £82k).
The PCC has agreed an Agape Gifts policy. This means that if we undertake any new project, a percentage of the value of that project will be gifted elsewhere. On completion of the new store and bin area project, which cost about £35k, gifts of £3.5k were made to Diocese of Kibondo £2.5k and Debt Centre Greenwich £1k.
All church members are encouraged to use the Parish Giving Scheme for both regular giving and one-off gifts. This scheme is a charity which operates as a secure and efficient vehicle for church members to make their donations to the church, with Gift Aid, enabling them to choose to have their giving increased annually in line with inflation. The church benefits through reduced administration and improved cash flow.
During 2022 we installed a permanent card reader terminal for giving at the back of church which is now well used by visitors and at occasional events. We also offer a QR code facility.
We give thanks to God for providing sufficient income during the period.
Reserves Policy
St Michael’s has a reserves policy, which is to ensure that normally there are sufficient cash resources to cover 13 weeks’ normal expenditure, £57k in relation to annual unrestricted expenditure of £220k. The cash resources available at 31 December 2022, calculated by taking total cash (£142,624) less Restricted funds (£11,079), less the balances of three Designated Funds (World Focus Fund £2,115, Halls Maintenance Reserve £10,500 and PRISM Maintenance Reserve £21k, total £33,615), as shown in the Balance Sheet on page 10, amounts to £97,930 (2021: £73,504).
The PCC now maintains maintenance reserves relating to the two buildings for which it is responsible: the halls and the church. These are Halls Maintenance Reserve and PRISM Maintenance Reserve. The intention is to make annual transfers to these reserves and build them up to a suitable sum. Meanwhile routine repairs are charged to the current year’s expenditure.
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St Michael and All Angels
Charity Number 1133778
Trustees' Annual Report
For the year ended 31 December 2022
Statement of Responsibilities of the Members of the Parachial Church Council
The PCC is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards ( United Kingdom Generally Accepted Accounting Practice) .
Charity law requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources for the financial year. In preparing these financial statements, the PCC are required to: i) select suitable accounting policies and apply them consistently;
ii) observe the methods and principles in the Charities SORP;
iii) make judgements and estimates that are reasonable and prudent;
iv) state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
v) prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The PCC is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Key risks and uncertainties
The charity is exposed to various risks - be they operational, financial or reputational. The PCC review the charity's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks.
Other matters
With regard to the PCC’s obligations to safeguard children and vulnerable adults, the members of the PCC confirm that they have complied with their duties under section 5 of the Safeguarding and Clergy Discipline Measure 2016.
The last quinquennial inspection was held in 2020; the work required has been undertaken.
Plans for Future Periods
In 2022 the PCC agreed a new Mission Action Plan covering the three year period 2022 to 2024.
John Clark 2[nd] May 2023 ……………………………………………………. ………………………………… John Clark, Chair Date
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St Michael and All Angels
Charity Number 1133778
Independent Examiner’s Report to the Trustees of The Parochial Church Council of the Ecclesiastical Parish of St Michael & All Angels Blackheath Park SE3
I report to the members of the PCC (who are also the charity’s trustees) on my examination of the accounts of the Charity for the year ended 31 December 2022 on pages 8 to 24 following, which have been prepared on the basis of the accounting policies set out on pages 11 to 14.
Responsibilities and basis of the report
As members of the PCC you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of Scotland, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
a) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
b) the accounts do not accord with those records; or
c) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed: Archie McDowall
Date: 2[nd] May 2023
Archie McDowall BA, CA Institute of Chartered Accountants of Scotland
Stewardship I Lamb’s Passage London EC1Y 8AB
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St Michael and All Angels
Charity Number 1133778
Statement of Financial Activities for the Year ended 31st December 2022
| Note | ||||||
|---|---|---|---|---|---|---|
| General | Designated | Restricted | Total funds |
Total | ||
| Fund | funds | funds | 2022 | 2021 | ||
| Income | 2 | |||||
| Voluntary income | 233,304 | - | 25,651 | 258,955 | 229,657 | |
| Activities for generating funds | 24,776 | 73,214 | - | 97,990 | 70,946 | |
| Investment income | 368 | - | - | 368 | 5 | |
| Income from charitable activities | 12,812 | - | 1,818 | 14,630 | 8,357 | |
| Other income | 9,749 | - | - | 9,749 | 8,335 | |
| Total Income | 281,009 | 73,214 | 27,469 | 381,692 | 317,300 | |
| Check | 0 | 0 | 0 | |||
| Expenditure | 3 | |||||
| Charitable activities | 219,920 | 65,390 | 37,105 | 322,415 | 275,018 | |
| Total expenditure | 219,920 | 65,390 | 37,105 | 322,415 | 275,018 | |
| Check | ||||||
| Net income / (expenditure) before transfers | 61,089 | 7,824 | (9,636) | 59,277 | 42,282 | |
| Transfers | 9 | |||||
| Gross transfers between funds | (35,717) | 34,529 | 1,188 | - | - | |
| Net income / (expenditure) before other | 25,372 | 42,353 | (8,448) | 59,277 | 42,282 | |
| gains / losses | ||||||
| Other recognised gains/losses | ||||||
| Gains on revaluation, fixed assets, charity's own use | - | 172,655 | - | 172,655 | 167,978 | |
| Net movement of funds | 25,372 | 215,008 | (8,448) | 231,932 | 210,260 | |
| Total funds brought forward | 43,191 | 1,785,741 | 19,527 | 1,848,459 | 1,638,199 | |
| Total funds carried forward | 68,563 | 2,000,749 | 11,079 | 2,080,391 | 1,848,459 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 11 to 25 form part of these accounts.
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St Michael and All Angels
Charity Number 1133778
Detailed Statement of Financial Activities with Comparatives for the Year ended 31 December 2022
| Income Voluntary income Activities for generating funds Investment income Income from charitable activities Other income Total income and endowments Check Expenditure Charitable activities Total expenditure Net income/(expenditure) Transfers between funds Other recognised gains/losses: Gains/(losses) on revaluation of fixed assets Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Total funds Total funds 2022 2021 2022 2021 2022 2021 2022 2021 General Fund Designated funds Restricted funds |
|---|---|
| 233,304 215,092 - - 25,651 14,565 258,955 229,657 24,776 20,190 73,214 50,756 - - 97,990 70,946 368 5 - - - - 368 5 12,812 8,357 - - 1,818 - 14,630 8,357 9,749 6,674 - 1,661 - - 9,749 8,335 |
|
| 281,009 250,318 73,214 52,417 27,469 14,565 381,692 317,300 0 0 0 219,920 197,346 65,390 58,530 37,105 19,142 322,415 275,018 |
|
| 219,920 197,346 65,390 58,530 37,105 19,142 322,415 275,018 0 0 |
|
| 61,089 52,972 7,824 (6,113) (9,636) (4,577) 59,277 42,282 (35,717) (33,741) 34,529 31,639 1,188 2,102 - - |
|
| 25,372 19,231 42,353 25,526 (8,448) (2,475) 59,277 42,282 - - 172,655 167,978 - - 172,655 167,978 |
|
| 25,372 19,231 215,008 193,504 (8,448) (2,475) 231,932 210,260 43,191 23,960 1,785,741 1,592,237 19,527 22,002 1,848,459 1,638,199 |
|
| 68,563 43,191 2,000,749 1,785,741 11,079 19,527 2,080,391 1,848,459 |
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St Michael and All Angels
Charity Number 1133778
Balance sheet as at 31 December 2022
| Note | General | Designated | Restricted | Total funds | Total | |
|---|---|---|---|---|---|---|
| Fund | funds | funds | 2022 | 2021 | ||
| Fixed assets | ||||||
| Tangible assets | 5 | - | 1,906,528 | - | 1,906,528 | 1,737,978 |
| Investments | 5 | - | - | 10 | 10 | 10 |
| - | 1,906,528 | 10 | 1,906,538 | 1,737,988 | ||
| Current assets | ||||||
| Debtors | 7 | 38,798 | 2,178 | 694 | 41,670 | 11,209 |
| Cash at bank and in hand | 6 | 39,094 | 92,694 | 10,836 | 142,624 | 108,006 |
| 77,892 | 94,872 | 11,530 | 184,294 | 119,215 | ||
| Creditors | ||||||
| Creditors: Amounts falling due within one year 8 | 9,329 | 651 | 461 | 10,441 | 8,744 | |
| Net current assets | 68,563 | 94,221 | 11,069 | 173,853 | 110,471 | |
| Net assets | 68,563 | 2,000,749 | 11,079 | 2,080,391 | 1,848,459 | |
| Represented by | ||||||
| General fund | 68,563 | - | - | 68,563 | 43,191 | |
| Designated funds | - | 2,000,749 | - | 2,000,749 | 1,785,741 | |
| Restricted funds | - | - | 11,079 | 11,079 | 19,527 | |
| Funds of the charity | 9 | 68,563 | 2,000,749 | 11,079 | 2,080,391 | 1,848,459 |
Approved by the PCC at its meeting on 2[nd] May 2023 and signed on its behalf.
Signed: John Clark Signed: Stephen Hingston John Clark (Chair) Stephen Hingston (Treasurer)
The notes on pages 11 to 25 form part of these accounts.
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St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
1 ACCOUNTING POLICIES
These financial statements are prepared on a going concern basis, under the historical cost convention (as modified by the revaluation of certain assets, which are measured at fair value through the Statement of Financial Activities). The financial statements include all activities for which the PCC is legally responsible; the activities of informal gatherings of church members and groups that owe their main affiliation to another body are excluded.
�
These financial statements have been prepared in accordance with The Church Accounting Regulations 2006, the 'Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)' ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
�
The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.� �
�
The principles adopted in the preparation of the financial statements are set out below.
a) Going concern
The PCC have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions, including Covid-19, that might cast significant doubt on the ability of the charity to continue as a going concern. The PCC have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the PCC have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The PCC have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.�
b) Income
Income (which includes planned giving, collections and other donations) is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part income is generally recognised when it is received by, or on behalf of, the PCC. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes: �
i)�Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor. �
ii)�Donated facilities, services and goods. Goods donated for distribution to beneficiaries are recognised as income when receivable at fair value (being an estimate of the amount it would cost to purchase those items). Facilities, services and goods donated for the charity's own use are recognised as income when receivable at their value to the charity.
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St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. At the year end any goods that have not been distributed or consumed are recognised as stock; donated fixed assets are capitalised. �
iii) Legacies. Income from legacies is recognised when a distribution is received from the estate or, if earlier, when the charity has been notified that a distribution will be made and the amount receivable can be measured reliably. �
�
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats and other events and courses.�
�
Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from the sale of donated goods. �
�
Investment income represents income generated by the charity's assets and includes income from letting the charity's property and bank interest. �
Other income comprises gains arising from the disposal of tangible fixed assets / social investments.�
�
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
c) Expenditure �
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably. �
Contributions to the Diocese in respect of the Parish Support Fund are included in the Statement of Financial Activities for all amounts agreed to being payable for the financial year. Any contributions that have not been paid over by the year end are included as a creditor.�
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.�
�
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.�
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St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
d) Fund accounting �
General funds are unrestricted funds which are available for use at the discretion of the PCC in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the PCC for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
�
e) Tangible fixed assets �
Consecrated and beneficed property is not included in these financial statements by virtue of s.10(2) of the Charities Act 2011. All expenditure on consecrated or beneficed buildings is written off in the year in which it is incurred.�
Movable church furnishings held by the incumbent and Churchwardens on special trust for the PCC and which require a faculty for disposal are capitalised in accordance with the policy set out below. These items are regarded as inalienable property and are listed in the church's inventory which can be inspected at any reasonable time. Inalienable property acquired prior to 2000 has not been capitalised as there is insufficient cost information available. �
The church halls and bungalow are held in trust by the Diocese on behalf of the PCC. These properties are essential for the mission of the church and have been in use for many years.�
�
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £5,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:�
Freehold land is not depreciated (because it is not consumed by use) Freehold buildings none (although typically this is done over 50 years) Equipment over 10 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.�
f) Investments �
Fixed asset investments are held to generate income and / or for their investment potential. �
g) Pension scheme arrangements �
The charity contributes to the Church of England Pensions Board Church Workers Pension Fund, which is a multiemployer defined benefit pension scheme. The charity is unable to identify its share of this scheme's assets and liabilities therefore, as permitted by FRS 102, it is being treated as if it were a defined contribution scheme. The last actuarial valuation indicated that the obligation to provide defined benefits gives rise to a funding deficit and the charity, along with other participating employers, may have to make additional contributions to remedy the deficit. Further information about this defined benefit scheme, and the charity's obligation to contribute towards its funding deficit, is disclosed elsewhere in the notes to these accounts.
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St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
h) Taxation �
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.�
i) Financial instruments �
The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).�
j) Exemption from preparing a cashflow statement �
The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.
14
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
2. Income
2.1 Income from generated funds - Voluntary Income
| Parish Giving Scheme Standing orders CAF & Charities Trust Payroll giving Donations Tax reclaimed Sunday Collections Special Collections PRISM Choir Legacies World Focus Hardship Travel Total |
Total Total General Designated Restricted 2022 2021 |
|---|---|
| 104,183 - - 104,183 95,630 9,073 - - 9,073 24,342 3,760 - - 3,760 4,300 - - - - 630 44,100 - - 44,100 44,270 39,194 - 3,820 43,014 41,781 2,994 - - 2,994 3,299 - - 2,165 2,165 1,572 - - 3,686 3,686 4,938 - - 2,105 2,105 - 30,000 - 30,000 3,000 - - 8,030 8,030 4,555 - - 1,100 1,100 1,340 - - 4,745 4,745 - |
|
| 233,304 - 25,651 258,955 229,657 |
The comparative figures for 2021 were: General - £215,092, Designated - nil and Restricted - £14,565.
| 2.2 Income from generated funds - Activities for generating | 2.2 Income from generated funds - Activities for generating | funds | |||
|---|---|---|---|---|---|
| Church lettings | 5,620 | - | - | 5,620 | 1,500 |
| Hall lettings - Long term | - | 63,880 | - | 63,880 | 45,486 |
| Hall lettings - Single | - | 9,334 | - | 9,334 | 5,270 |
| Bungalow Rent | 19,156 | - | - | 19,156 | 18,690 |
| Total | 24,776 | 73,214 | - | 97,990 | 70,946 |
The comparative figures for 2021 were: General - £20,190, Designated - £50,756 and Restricted - nil.
2.3 Income from generated funds - Investment Income
| Interest received | 368 | - | - | 368 | 5 |
|---|---|---|---|---|---|
| The comparative figures for 2021 were: General - £5, Designated - nil and | Restricted - nil. | ||||
| 2.4 Income from charitable activities | |||||
| Holiday Club | 2,964 | - | - | 2,964 | 1,735 |
| Woman's weekend | 2,628 | - | - | 2,628 | 4,130 |
| Advent Fair | 3,083 | - | - | 3,083 | 2,492 |
| Concert for Peace - Ukraine | 2,182 | - | - | 2,182 | - |
| Passover Supper | 1,108 | - | - | 1,108 | - |
| Health & Well-Being Fair | 847 | - | - | 847 | - |
| Children's Choir Concert | - | - | 1,818 | 1,818 | - |
| Total | 12,812 | - | 1,818 | 14,630 | 8,357 |
The comparative figures for 2021 were: General - £8,357, Designated - nil and Restricted - nil.
15
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
2.5 Other income
Other Income 9,749 - - 9,749 8,335
The comparative figures for 2021 were: General - £6,674, Designated - R1,661 and Restricted - nil
3. Expenditure
3.1 Charitable activities
| 3.1 Charitable activities | |
|---|---|
| By Fund Parish Support Fund Staff Costs World Focus payments Hardship Landscaping and Grounds Agape Gifts Ukraine Support Special Collections Events Expenditure Other Church: Church Repairs Depreciation Children's Choir Other church costs Halls: Repairs Manager/maintenance charge Other hall costs Bungalow: Repairs Other Bungalow costs Travel Governance costs (Note 3.2) Total |
General Designated Restricted 2022 Total 2021 |
| 84,000 - - 84,000 82,000 42,487 - - 42,487 39,596 - 22,241 10,038 32,279 30,426 - - 5,609 5,609 6,396 31,170 - - 31,170 17,478 3,500 - - 3,500 - 6,500 - - 6,500 - - - 2,719 2,719 1,978 8,181 - - 8,181 6,385 21,051 - - 21,051 12,457 1,417 - 4,442 5,859 5,758 - 4,105 - 4,105 4,105 - - 6,496 6,496 1,294 18,390 - - 18,390 16,335 - 10,055 - 10,055 3,596 - 10,200 - 10,200 10,000 - 18,789 - 18,789 15,772 - - - - 990 382 - - 382 17,700 - - 7,801 7,801 - 2,842 - - 2,842 2,752 |
|
| 219,920 65,390 37,105 322,415 275,018 |
The comparative SOFA figures for Total resources used for 2021 were: General - £197,346, Designated - £58,530 and Restricted - £19,142.
16
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
Acting as agent
On occasion the charity receives money on behalf of other charities or individuals, which it banks and then pays out to these charities or individuals. This income is received as agent for these charities and the income, and the related payments, are excluded from the Statement of Financial Activities; any money that has not been distributed by the year end is recognised as creditor.
During the year the charity acted as agent for members of the congregation and, in that capacity collected and paid out £6,567 as a retirement gift for our vicar Rev Sandy Christie following his retirement.
3.2 Governance Costs
| 3.2 Governance Costs | ||
|---|---|---|
| Payroll bureau Independent examination Total |
2022 2021 £ £ 642 632 2,200 2,120 |
2021 |
| 2,842 2,752 |
The fee payable to the independent examiner for examining the accounts was £2,200 (2021: £2,120); in addition the charity paid £642 (2021: £632) to Stewardship for payroll bureau.
4 STAFF COSTS
| 4 STAFF COSTS | |
|---|---|
| Wages and salaries Pension contributions |
2022 2021 49,806 45,547 3,302 3,082 |
| 53,108 48,629 |
During the year the PCC employed three staff (2021: 3): a Youth Minister, an Administrator, and a cleaner, none of whom earned £60,000 p.a. or more. The stipend for one further individual: the Vicar, Rev. Alexander Christie, is paid directly by the Diocese. This figure are not included above.
The church operates a defined benefit pension scheme with the Church of England Pensions Board. Contributions were paid during the year in respect of two employees (2021: 2).
Most of the charity’s activities are carried out by volunteers.
17
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
5 FIXED ASSETS FOR USE BY THE PCC
| 5 FIXED ASSETS FOR USE BY THE PCC | |
|---|---|
| Cost / Valuation At 1 January 2022 Additions Unrealised Gains/(losses) on revaluation At 31 December 2022 Accumulated depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 1 January 2022 |
Freehold Buildings Audio Visual System Chairs Total 2022 £ £ £ £ 1,709,245 36,278 4,770 1,750,293 - - - - 172,655 - - 172,655 |
| 1,881,900 36,278 4,770 1,922,948 |
|
| - 10,884 1,431 12,315 - 3,628 477 4,105 |
|
| - 14,512 1,908 16,420 |
|
| 1,881,900 21,766 2,862 1,906,528 |
|
| 1,709,245 25,394 3,339 1,737,978 |
The comparative SOFA figure for 2021 for Unrealised gains on revaluation was £167,978.
Freehold property was valued at £1,709,245 in February 2022 by an independent qualified valuer. This figure was increased in March 2023 to £1,881,900 for insurance purposes, after indexation.
The Audio Visual System acquired in 2006 was fully depreciated at 31.12.17. Enhancements costing £35k were made in 2018. New church chairs were also acquired in 2018. Both of these are depreciated on a straight line basis over ten years.
The freehold buildings comprise the church hall and the bungalow situated at 1/1a Pond Road. The net book value is based on the value as at 25 March 2023 for insurance purposes and is considered to be a fair estimate of the current value in use of the property. The valuation of £475,000 at 1st January 2007 represents the best estimate of historical cost available to the Trustees.
The halls and bungalow are held by The South London Church Fund & Southwark Diocesan Board of Finance (SLCF). The maintenance of the PCC’s asset in the name of SLCF is both a current legal requirement and aids the practicalities of land holdings and possible disposals.
| Value | Unrealised | Value | |||
|---|---|---|---|---|---|
| brought | gains on | carried | |||
| forward | revaluation | Depreciation | Disposal | forward | |
| £ | £ | £ | £ | £ | |
| Shares (see note below) | 10 | - | - | - | 10 |
The comparative SOFA figure for 2021 for Unrealised gains on revaluation was nil.
The PCC holds two £5 shares in Blackheath Cator Estate Residents Limited.
18
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
| 6 CASH AT BANK AND IN HAND Cash at bank with immediate access Notice deposits (with a term of three months or less) Petty cash 7 DEBTORS AND PREPAYMENTS Income tax recoverable Legacies receivable Other debtors 8 LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR Accruals and deferred income |
2022 2021 £ £ 142,624 108,006 - - - - |
2021 |
|---|---|---|
| 142,624 108,006 |
||
| 2022 2021 £ £ 6,071 3,968 32,800 5,800 2,799 1,441 |
2021 | |
| 41,670 11,209 |
||
| 2022 2021 £ £ 10,441 8,744 |
2021 |
19
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
9 FUNDS
During the year the movements in the charity's funds were as follows:
| Fund and type General Fund Designated funds World Focus Fund Halls & Bungalow Capital Fund Audio Visual System Fund Chairs Fund Halls Fund Halls Maintenance Reserve PRISM Maintenance Reserve Total designated funds Restricted funds Special Collections World Focus Fund Travel Fund Choir Fund Cator Estate Shares Hardship Fund PRISM Fund Total restricted funds TOTAL FUNDS at 31 December 2022 |
Balances brought forward Income Expenditure Transfers Gains and losses Balances carried forward £ £ £ £ £ £ |
|---|---|
| 43,191 281,009 219,920 (35,717) - 68,563 |
|
| 827 - 22,241 23,529 - 2,115 1,709,245 - - - 172,655 1,881,900 25,394 - 3,628 - - 21,766 3,339 - 477 - - 2,862 31,936 73,214 39,044 (5,500) - 60,606 5,000 - - 5,500 - 10,500 10,000 - - 11,000 - 21,000 |
|
| 1,785,741 73,214 65,390 34,529 172,655 2,000,749 |
|
| - 2,719 2,719 - - - - 10,038 10,038 - - - 2,691 4,745 7,801 738 - 373 5,515 4,561 6,496 250 - 3,830 10 - - - - 10 9,673 1,350 5,609 200 - 5,614 1,638 4,056 4,442 - - 1,252 |
|
| 19,527 27,469 37,105 1,188 - 11,079 |
|
| 1,848,459 381,692 322,415 - 172,655 2,080,391 |
Analysis of net asset by fund
The assets and liabilities of the various funds were as follows:
| Tangible fixed assets Investments Debtors Cash at bank and in hand Creditors falling due within one year |
General Designated Restricted funds funds funds 2022 £ £ £ £ - 1,906,528 - 1,906,528 - - 10 10 38,798 2178 694 41,670 39,094 92,694 10,836 142,624 (9,329) (651) (461) (10,441) |
|---|---|
| 68,563 2,000,749 11,079 2,080,391 |
20
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
9 FUNDS
In the previous year the movements in the charity's funds were as follows:
| Fund and type General Fund Designated funds World Focus Fund Halls & Bungalow Capital Fund Audio Visual System Fund Chairs Fund Halls Fund Halls Maintenance Reserve PRISM Maintenance Reserve Total designated funds Restricted funds Special Collections World Focus Fund Travel Fund Choir Fund Cator Estate Shares Floodlight Fund Hardship Fund PRISM Fund Total restricted funds TOTAL FUNDS at 31 December 2021 |
Balances brought forward Income Expenditure Transfers Gains and losses Balances carried forward £ £ £ £ £ £ |
|---|---|
| 23,960 250,318 197,346 (33,741) - 43,191 |
|
| 4,245 - 25,057 21,639 - 827 1,541,267 - - - 167,978 1,709,245 29,022 - 3,628 - - 25,394 3,816 - 477 - - 3,339 13,887 52,417 29,368 (5,000) - 31,936 - - - 5,000 - 5,000 - - - 10,000 - 10,000 |
|
| 1,592,237 52,417 58,530 31,639 167,978 1,785,741 |
|
| - 1,978 1,978 - - - - 5,369 5,369 - - - 1,441 - - 1,250 - 2,691 6,809 - 1,294 - - 5,515 10 - - - - 10 (852) - - 852 - - 14,594 1,475 6,396 - - 9,673 - 5,743 4,105 - - 1,638 |
|
| 22,002 14,565 19,142 2,102 - 19,527 |
|
| 1,638,199 317,300 275,018 - 167,978 1,848,459 |
Analysis of net asset by fund
The assets and liabilities of the various funds were as follows:
| Tangible fixed assets Investments Debtors Cash at bank and in hand Creditors falling due within one year |
General Designated Restricted funds funds funds 2021 £ £ £ £ - 1,737,978 - 1,737,978 - - 10 10 10,709 100 400 11,209 37,939 49,000 21,067 108,006 (5,457) (1,337) (1,950) (8,744) |
|---|---|
| 43,191 1,785,741 19,527 1,848,459 |
21
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
| Fund transfers World Focus Fund (10% transfer of general income General to Travel Fund General to Choir Fund General to Hardship Fund Halls Fund to Halls Maintenance Reserve General Fund to PRISM Maintenance Reserve |
World General Focus Travel Choir Hardship Halls PRISM Halls Fund Fund Fund Fund Fund Fund (23,529) 23,529 (738) 738 (250) 250 (200) 200 (5,500) 5,500 (11,000) 11,000 Maintenance Reserve |
|---|---|
| (35,717) 23,529 738 250 200 (5,500) 11,000 5,500 |
The comparative SOFA figures for 2021 were: General – (£33,741), Designated – £31,639 and Restricted - £2,102.
Designated funds
Halls & Bungalow Capital Fund is the valuation of the church hall and bungalow.
Audio Visual Fund and Chairs Fund represent the undepreciated value of the Audio Visual System and church chairs.
Halls Fund comprises income from lettings, less expenditure in respect of the halls.
Restricted funds
Special collections represent donations received for specific purposes, for example; a funeral where the family ask us to give the collection to a certain charity and church service where we tell those attending the collection will go to a specific charity. The 2021 numbers have been re-stated to treat special collections received and spent as restricted.
World Focus Fund income primarily arises from the 10% of general income agreed by the PCC, as well as specific gifts to the fund.
Other restricted funds include the Cator Estate Shares.
The Choir Fund was opened in 2019 to receive donations for the St Michael's Children’s Choir, and to fund expenditure in future years.
The Travel Fund was set up many years ago to enable travel, in either direction, between the church in Blackheath and the church overseas. In 2022 it was used to receive income and pay out expenditure in respect of a pilgrimage to the Holy Land attended by church members and others.
The PRISM Fund (Preserve, Restore, Improve St Michael’s) was set up in 2013 to fund expenditure on the inside and outside of the church.
The Hardship Fund was opened in 2020 to assist those who were struggling financially as a result of the Covid pandemic.
22
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
10 CHARITABLE EXPENDITURE - GRANTS PAYABLE
Grants payable out of World Focus Fund in 2022 were in respect of UK and overseas mission and totalled £32,279 (2021: £30,426).
Charities to which World Focus grants paid in 2022: Bible Society £3,000, Church Mission Society £3,625, Crosslinks £3,500, Greenwich Youth for Christ £3,000, OMF International £3,000, Tearfund £500, Friends of ASHA £500, SAT7 UK Trust £1,000, Helping Refugees in Jordan £500, Ukraine Mission Partner £3,309 and Diocese of Kibondo, Tanzania £8,345. We also paid £1,000 each to two missionary families working in India and Wales.
Charities to which World Focus grants paid in 2021: Bible Society £4,000, Church Mission Society £6,850, Crosslinks £3,600, Greenwich Youth for Christ £1,500, OMF International £4,000, London City Mission £1,000, Friends of ASHA £2,488, SAT-7 UK Trust £1,000, Helping Refugees in Jordan £1,000, Jerusalem and Middle East Church Association £300 and Diocese of Kibondo, Tanzania £2,188. We also paid £1,500 and £1,000 to two missionary families working in India and Wales respectively.
Grants payable out of the Hardship Fund in 2022 totalled £5,609 (2021: 6,396), which comprised £1,609 (2021: £1,396) paid to individuals for the alleviation of poverty, £2,000 (2021: £5,000) payable to Debt Centre Greenwich, a charity set up under the auspices of Christians Against Poverty, and £2,000 (2021: Nil) to Greenwich Foodbank.
Grants payable out of Travel Fund in 2022 totalled £6,736 (2021: nil). £5,686 paid to four individuals to enable them to attend the St Michael's group pilgrimage to the Holy Land in October 2022 and £1,050 to the Jeel Al Amal orphanage in Jerusalem, visiting during the pilgrimary.
Grants payable out of General Fund in 2022 totalled £6,500 (2021: nil). These comprised £3k to the church in Ukraine following the Russian invasion, £2.5k to the Diocese of Kibondo, Tanzania, and £1k to Debt Centre
Grants payable
| Grants for UK and overseas mission Grants for the relief of poverty Grants for education, including ministry training The comparatives for the previous year are as follows: Grants for UK and overseas mission Grants for the relief of poverty Grants for education, including ministry training |
Institutions Individuals Total 2022 £ £ £ 34,520 5,309 39,829 4,000 1,609 5,609 - 5,686 5,686 |
|---|---|
| 38,520 12,604 51,124 |
|
| Institutions Individuals Total 2021 £ £ £ 27,926 2,500 30,426 5,000 1,396 6,396 - - - |
|
| 32,926 3,896 36,822 |
23
St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
The charity's principal grants to institutions comprised:
| Bible Society Church Mission Society Crosslinks Greenwich Youth for Christ OMF International Friends of ASHA Diocese of Kibondo Debt Centre Greenwich Greenwich Foodbank Church in Ukraine Jeel Al Amal Orphanage Grants to institutions for £1,000 each and less |
2022 2021 £ £ 3,000 4,000 3,625 6,850 3,500 3,600 3,000 1,500 3,000 4,000 500 2,488 10,845 2,188 3,000 5,000 2,000 - 3,000 - 1,050 - 2,000 3,300 |
|---|---|
| 38,520 32,926 |
11 PENSIONS
St Michaels participates in the Pension Builder Scheme section of the Church Workers Pension Fund for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the Scheme separately from those of the Employer and other participating employers.
The Church Workers Pension has two sections: the Defined Benefits Scheme and the Pension Builder Scheme, which has two subsections, a deferred annuity section known as Pension Builder Classic, and a cash balance section known as Pension Builder 2014.
Pension Builder Scheme
Both sections of the Pension Builder Scheme are classed as defined benefit schemes.
Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.
Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the Statement of Financial Activities in the year are the contributions payable to Pension Builder Classic £4,198 (2021: £4,049).
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St Michael and All Angels
Charity Number 1133778
Notes to the Financial Statements for the year ended 31 December 2022
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022.
For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 10.1% following improvements in the funding position over 2022. There is no requirement for deficit payments at the current time.
For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, St Michael’s could become responsible for paying a share of the failed employer’s pension liabilities.
12 RELATED PARTIES
Donations received from trustees for the year amounted to £72,012 (2021: £52,305).
Lauren Crisp-Hihn is employed as Youth Minister and her salary is determined by the PCC Remuneration Committee, whose membership does not include her husband, Joe Crisp-Hihn, who became a trustee in May 2022. The salary, which the trustees regard as confidential, is benchmarked annually and found to be comparable with other positions.
Except as disclosed in note 4 ‘Analysis of staff costs’, there have been no other transactions with related parties during the year.
The church is part of the Church of England and payment is made to the Diocese of Southwark in the form of a contribution to the Parish Support Fund.
25