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← The Parochial Church Council Of The Ecclesiastical Parish Of St Nicholas, Durham

2023-12-31-accounts

The Parochial Church Council of the Ecclesiastical Parish of St Nicholas, Durham

Report and Accounts Year ended 31 December 2023

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1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

CHARITY INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2023

Members of the Parochial Church Council

Ex-officio members Incumbent Revd Dr Will Foulger (from September 2023) Revd Dr Will Foulger (from September 2023)
Curate Revd Claire Elwood (resigned September 2023)
Prior Richard Briggs (resigned October 2023)
Self-supporting Minister Revd Baroness Maeve Sherlock
Wardens Mary Anne Freer
Alan Smith
General Synod Angus Goudie
Jamie Harrison
Deanery Synod Tim Packer
Emma Clements (from April 2023)
PCC Secretary Ann Lipscombe (resigned March 2023)
Elected Members Sam Chapman
Jane Ghosh
Naomi Stevens
Phil Dawson
Elaine Duddy
Wendy Hughes
Christopher Stokes
Richard Swann
Fiona Cuthill (from April 2023)
Toby Dongean-Cross (from April 2023)
Amy Tharakan (from April 2023)
Lydia Francis-Holmes (from April 2023- resigned July 2023)
Sarah Alsop (from April 2023)
Abi Taylor (from April 2023)
Fiona Courtman (from April 2023)
Charity Registration Number 1133809
Principal Address St Nicholas' Church
Market Place
Durham
DH1 3NJ
Independent Examiner Sarah Crispin ACA
Stewardship
1 Lamb's Passage
London
EC1Y 8AB
Contents Page
Charity Information 1
Annual Report of the Members of the Parochial Church Council 2-7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Accounts 11-19
Detailed Statement of Financial Activities with Comparatives 20

Page 1

St Nicholas' Church, Durham

Members' Annual Report

Year ended 31 December 2023

The members present their report and the unaudited financial statements of the Parochial Church Council for the year ended 31 December 2023.

Objectives and activities

The objectives of St Nicholas Church (known to all as ‘St Nics’) continue to be those of a city-centre Church of England church: to be a Christ-centred community that grows in discipleship, service and number. It seeks to achieve this through a vision focused around Discipleship, Evangelism, Justice and Service, under the broad rubric of being ‘a church for everyone’. St Nics is also a designated ‘Resource Church’ for the wider Diocese of Durham. This understanding was condensed into a vision statement shared with all attendees at the end of the 2022 year, in a ‘Vision Sunday’ in early January 2023. Since then, the church welcomed a new Vicar (from Sept 2023), Revd Dr Will Foulger, who has led us in a period of ’40 weeks’ of waiting and discernment before we begin any new initiatives.

The PCC has the responsibility of co-operating with the incumbent in promoting in the parish all aspects of the mission of the church – pastoral, evangelistic, social and ecumenical.

In attempting to achieve its objectives, St Nics undertakes a number of different ministries, including:

Ministry as a Parish Church: We resource our members of all ages through regular Sunday services that include biblical preaching and teaching, worship, and the celebration of Holy Communion. Alongside these we hold daily prayer services (Mon-Fri at 8am), a wide range of midweek small groups for the cultivation of Christian discipleship, and many other ministries, including student work, dedicated children’s and youth provision, music and worship ministry.

We have continued our established pattern of Sunday services – three Sunday services at 9am, 11am and 6.30 pm, as well as a once-per-month 4pm afternoon service on the fourth Sunday of every month, known as ‘The 4’, and which is open to those for whom our weekly services may not be convenient. We have continued to stream at least one service on a Sunday, aware that our online ‘congregation’ often numbers 50–100 views (and therefore perhaps 100–200 people) spread far and wide, every Sunday.

Other special events through the year include a children’s holiday club, student weekend away, youth summer camp, and other social events.

The Diocese of Durham has been encouraging all its churches to consider the possibilities for starting new worshipping congregations in Durham, whether as additional services (such as ‘The 4’ – see above) or in other locations in addition to the church building. St Nics has been actively involved in exploratory conversations about this possibility through 2023, with a view to discerning whether there is scope to do this in the years ahead.

Small Groups Those who are involved in the life of the church are encouraged to join one of a network of Small Groups (SGs), hosted in members' homes. These groups play an important role in pastoral care, facilitating personal growth and encouraging an outward focus to our Christian lives. The group leaders meet periodically for training and support. After our Prior, Richard Briggs, left St Nics we have put the ‘Community of St Cuthbert’ project on hold. The resources from the community are still available online.

Ministry Experience Volunteers (formerly Ministry Assistants): The Internship scheme at St Nics was started in the summer of 2010, and provides an opportunity for people to explore God's call in their lives while serving the church. The MEVs serve in various ministries in the church, as well as undertaking a course of accredited study at first year degree level through the local Lindisfarne College of Theology.

In September 2016, our Internship program became part of the Durham Diocese Church of England

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St Nicholas' Church, Durham

Ministerial Experience Scheme. This year we have had one MEV with us, Amelia Enstone.

Ministry with students: Our Student Ministry aims to welcome, integrate and disciple students as well as providing pastoral care. After our student and international worker, Edmund Milwain, left his role in Summer 2023, we have been without a dedicated student worker or International worker. This year our student work has been led by an ordinand, on placement with us, Tim Riman. Under Tim’s leadership the student work has re-established a thriving weekly student night where students eat, study the bible, and pray together.

Ministry with international students (‘Amigos’): This ministry aims to encourage the churches in Durham to welcome and befriend international students whatever their faith, helping those who are Christians to find fellowship and grow in their faith, and taking the opportunity to share the Good News of Jesus with any who express an interest. ‘Amigos’ hosts a weekly regular meeting in addition to other activities. The group is staffed by volunteers.

Ministry with children and families: In the context of Durham Diocese where fewer than 6 churches are in regular contact with more than half a dozen children and young people, St Nics is privileged to work with a large number of children under the oversight of our Children and Families Worker, Kate Swann. We have over 80 children under 16 in some degree of regular attendance on a Sunday, and Kate Swann provides support to them and to their families by resourcing their Christian discipleship. An annual holiday club – this year undertaken during one half-term break in the year –attracted children who have no previous involvement in our church life. St Nics runs courses for parents on aspects of raising children in contemporary culture and informed by Christian faith.

This year we restarted a toddler group – ‘Little Stars’ – which is held weekly here in church. This group has grown and now welcomes over 12 families each week.

Ministry with young adults Our Youth Missioner, Hannah Wilkinson, has continued to develop involvement with the Durham Sixth Form Centre that is located in our parish. As well as continuing to develop excellent relationships with staff, and maintain an innovative ‘Big Questions’ group for interested sixth formers, she has developed a wide-ranging mentor scheme. This draws in volunteers from the wider church membership who can offer expertise and reflection in a range of subject areas. This year also saw the establishment of a Christian Union in the school, which Hannah co-leads with a young person who is a student at the Sixth Form centre.

Hannah maintains a range of activities for young adults (11-18) already attending church including Sunday morning worship materials for those 11—13 and Wednesday and Sunday meetings for 13-18 year olds. We have seen a growth in the numbers of young people in the past year, with now on average 14 young people attending our 6.30pm Sunday service. Hannah’s post is funded by the Diocese of Durham and the Church of England’s Strategic Development Fund. The expense fund provided as part of this funding has permitted youth to go on a summer camp with youth from many other churches, as part of helping them to have a sense of the wider world of church possibilities. The Teenaid Fund shown in the financial statements receives income from the interest on the Patterson Fund, a bequest made to the church a number of years ago. The fund gives grants for activities that ‘encourage the spiritual growth of young people in the church.’

Mission Giving: The church supported mission activities in 2023. This year total support came to £7.8k and included the Bible Society, the Church Missionary Society, Church Army, VDM (Manasseh & Catrin Tuyizere), Mission Aviation Fellowship and the Latvia Biblical Centre.

The International Mission Committee keeps our contacts with the international societies under review and reports back to PCC periodically. The congregation was involved through meeting and praying for a number of mission partners throughout the year, a regular monthly prayer meeting, intercessions for mission partners as part of the morning service and through the Church's monthly prayer diary.

Buildings : As a resource for the community we serve, the church buildings are available for hire for a number of specified purposes and this income is included in the accounts.

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St Nicholas' Church, Durham

The most recent Quinquennial Report was carried out in July 2021 and all immediate works required were carried out.

Regional Mission: Our role as a parish church in the Diocese of Durham and part of the Anglican Communion continues to be an essential part of our church life. The clergy regularly attend Deanery Synod and Deanery Chapter meetings. Tim Packer, and Emma Clements served on the Deanery Synod, since the APCM of 2023, and will continue for another year. Jamie Harrison and Angus Goudie continue to serve on General Synod .

The Parish Offering is our contribution to the costs of mission for the Church of England in the Diocese of Durham. It pays for the stipend and employing cost of our clergy, provision of Diocesan resources such as the use of a house for our MEVs, and other aspects of church life. St Nics has made a net contribution to the share over and above the cost of these provisions, though this may change in future years. The Parish Share is used to support mission and ministry throughout the Diocese. We give according to the Diocese’s suggested ‘guided pledge’ and we have sought to give up to the suggested amount. In 2023 we gave £120k in Parish Offering and PCC continues to see the importance of helping to sustain mission in parts of our region that cannot at present support it on their own. The full £120k is included as an expense in the 2023 SOFA (see Note 7).

The Trustees have complied with the duty to have due regard to the public benefit guidance published by the Charity Commission.

Financial review

During the year, the PCC of St Nics made a surplus of £34.8k vs. a surplus in 2022 of £2.8k.

Donations including gift aid (excluding grants and legacies), increased by 4% compared to 2022 (£260.8k 2023 vs. £250.7k 2022). During the year there was a sermon series on giving over a number of weeks to encourage one off giving as part of the church’s regular “Gift Day” but also to increase regular giving or start giving for those who were regular attendees. The aim in future is to give Gift Day a specific mission focus as it is present again in the 2024 budget.

Costs incurred as part of Discipling Church are reimbursed by the Strategic Development Fund, via the Diocese, once a claim has been submitted. These costs totalled £65.8k in 2023 (vs. £93.4k in 2022). The previously titled Ministry Assistants are now Ministry Experience Volunteers and form part of our Discipling Church staff. This funding will end in December 2025 and time has been spent in collaboration with the Diocese as to how this money is best spent during the remainder of the funding period to ensure the costs currently funded are sustained beyond that.

Parish Offering for 2023 increased by £20k from 2022 to £120k agreed by PCC. This represented a 20% increase on the previous year which was lower than the suggested amount due to recent Quinquennial Report. In 2024, St Nics have pledged £126k which met the suggestion of the Diocese.

During the year the PCC was awarded £40.3k in grants towards transforming the previously disused Churchyard space into a Community Garden, however only £3.8k of this has been spent. The remainder is expected to be spent in 2024. This will however, not match up with the income which has been received and recognised in 2023 so a deficit is to be expected in this area. Property expenses were 66% lower than 2022 (£75.8k). This was due to the large level of expenditure needed to the maintenance of the building in 2022 after the Quinquennial Report. A higher level of expenditure is expected in 2024 as projects are progressed and brought to fruition.

Fixed Assets were added to at the end of the year including 2 camcorders for live streaming services and a set of Silent Disco Equipment for future events at the church. These will begin their depreciation in 2024.

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St Nicholas' Church, Durham

During the year the café closed and so the income recognised in accounts as £9.7k in 2023 will not appear again in 2024. This was due to various reasons which meant operation was not sustainable.

Reserves Policy

“It is the intention of PCC to try and maintain a balance on the designated “Reserve Fund” of approximately £50,000 to cope with unforeseen expenditure and ongoing cash flow management.”

At the year end, the church was above this figure (see balance sheet).

Acknowledgements

The PCC is very grateful to all those members of the congregation who give freely of their time and abilities in many different ways - assisting in the various activities mentioned above.

Thank you too for your financial gifts which enable St Nic’s to bring people to Jesus in so many different ways. We are most grateful for your support.

Grateful thanks as regards the finances are due to Kate Dawson, our Church Operations Manager, and

Andy Freer, our Gift Aid Secretary.

It has been very helpful to have the support of the Finance Committee over the past year; especially during the period of vacancy. Thank you all for your support, the Finance Committee, the Standing Committee and to PCC.

Structure, governance and management

PCC: The Parochial Church Council (PCC) is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure. The PCC registered in September 2009 with the Charity Commission.

The method of appointment of PCC members is set out in the Church Representation Rules. All regular Church attendees are encouraged to register on the Electoral Roll and stand for election to the PCC. Members of the PCC are either ex-officio, elected by the APCM or co-opted by the PCC.

The PCC operates through a number of committees. These meet formally and informally between full meetings of the PCC and are served by members of the PCC and other members of the church. The Standing Committee (comprising the incumbent, wardens, deputy wardens, treasurer, PCC lay chairperson and PCC secretary) is the only committee required by law. It has the power to transact the business of the PCC between meetings, subject to any directions given by the Council.

In 2023 the PCC met on 9 occasions. In addition to regular reports covering ministry, finance, property, safeguarding and eco issues, the PCC continued to make prayer a regular and core part of its meetings.

The Revd Dr Richard Briggs left St Nics, and his role as Prior, in October 2023. Revd Claire Elwood’s

curacy ended in Summer 2023.

In addition to the staff team and the PCC the church is blessed to have a team of retired and licensed clergy in addition to readers. At the end of 2023 this team included: Revd David Day, Revd Peter Johnson, Revd Steve Muneza, Revd Colin Patterson, Revd Philip Brookes, Revd Josh Cockayne, Revd Gavin Wakefield, Revd Fran Wakefield, Ruth Stokes, Andrew Trigger and Jamie Harrison. Baroness Sherlock of Durham remains an Associate Minister.

Staff team: In 2023, the staff team reporting to the vicar and directly employed by the church, included: Kate Dawson (Church Operations Manager), Janet Dawson (Administrative Assistant), Kate Swann (Children and Families Worker), Stephanie Simants (part-time Worship Co-ordinator from August 2022),

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St Nicholas' Church, Durham

and Claire Morley (part-time cleaner).

The church staff includes further roles funded by the Strategic Development Fund money from the Church of England: these are Hannah Wilkinson (Youth Missioner), and Phil Alsop (Tech Coordinator).

Risk management: The PCC is of the opinion that the management structure, as detailed above, keeps under review and manages the various risks which the church faces. Risk in this context might be defined as "the threat that an event or action will adversely affect an organisation's ability to achieve its objectives and execute its strategies". These may be:

 Financial risk often seen as the most common category of risk. We manage this through budgets, internal financial controls and management accounts. Also, we are currently subject to an annual independent examination.

 Statutory and legal requirements for example, health and safety regulations, employment law and child and vulnerable adult safety regulations. We aim for the highest standards in these areas and they are kept under review by the Church Wardens, the Safeguarding Officer, the Operations Manager, the Treasurer and others with specific areas of knowledge.

 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.

 Operational risk this would threaten the church's ability to deliver its objectives owing to, for example, damage to the church building or loss of key personnel. With regard to the former, the church wardens liaise with property experts, fire safety officers and others. As regards personnel, the type of team ministry this church operates reduces the risks associated with one member of staff leaving.

 Reputational risk for example, unwelcome publicity would hinder the mission of the church. This is managed at many different levels e.g. by the staff team, PCC members and small group leaders.

In line with current legislation, PCC subjects the annual accounts to an independent examination.

Going Concern

Given our Reserves policy to maintain Reserves at a level of £50,000 to mitigate unforeseen circumstances, PCC believes that St Nics continues to be financially viable at present.

Statement of Responsibilities of the Members of the Parochial Church Council

The PCC is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources for the financial year. In preparing these financial statements, the PCC are required to:

  1. select suitable accounting policies and apply them consistently;

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and estimates that are reasonable and prudent;

  4. state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

  5. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The PCC is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements

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St Nicholas' Church, Durham

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.

Administrative information

St Nicholas Church is situated in the Market Place, Durham. It is part of the Diocese of Durham within the Church of England. The correspondence address is Church Office, St Nicholas Church, Market Place, Durham DH1 3NJ. The website of the church can be accessed at www.stnics.org.uk

We are registered with the Charity Commission under the name of "The Parochial Church Council of the Ecclesiastical Parish of St Nicholas, Durham"; the registration number is 1133809.

Approval

This report was approved by the PCC and signed on their behalf by:

Revd Dr Will Foulger

Date:

Page 7

INDEPENDENT EXAMINER'S REPORT

TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF

HE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM ('the Charity')

I report to the members of the PCC (who are also the charity's trustees) on my examination of the accounts of the Charity for the year ended 31 December 2023 on pages 9 to 20 following, which have been prepared on the basis of the accounting policies set out on pages 11 and 12.

Responsibilities and basis of report

As members of the PCC you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Sarah Crispin ACA Institute of Chartered Accountants in England and Wales

Stewardship 1 Lamb's Passage London EC1Y 8AB

Date:

Page 8

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income and endowments
EXPENDITURE ON:
Charitable activities
7
Raising funds
8
Total expenditure
Net income/(expenditure)
Transfers between funds
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
16		 Unrestricted
Funds
£
261,487
67,591
30,057
3,682
362,817
360,208
12,337
372,545
(9,729)
(1,527)
(11,255)
262,207
250,952		 Restricted
Funds
£
49,779
2,380
-
1,815
53,974
9,607
-
9,607
44,367
1,694
46,061
25,613
71,674		 Endowment
Funds
£
-
-
-
143
143
-
-
-
143
(167)
(24)
5,097
5,073		 Total
Funds
2023
£
311,266
69,971
30,057
5,640
416,934
369,815
12,337
382,152
34,782
-
34,782
292,917
327,699		 Total
Funds
2022
£
313,517
96,971
26,696
982
438,166
429,306
6,097
435,402
2,763
-
2,763
290,154
292,917

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

All income and expenditure derive from continuing operations.

The notes on page 11-19 form part of these accounts.

Page 9

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

BALANCE SHEET

AS AT 31 DECEMBER 2023

Note
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
13
CREDITORS: Amounts falling
due within one year
14
Net current assets / (liabilities)
Total assets less current liabilities
TOTAL NET ASSETS
FUND BALANCES
16
Unrestricted Funds
General funds
Designated funds
Restricted Funds
Endowment Funds		 Unrestricted
Funds
£
99,931
99,931
18,866
148,110
166,976
(15,955)
151,021
250,952
250,952
127,300
123,652
250,952
-
-
250,952		 Restricted
Funds
£
-
-
1,450
70,224
71,674
-
71,674
71,674
71,674
-
-
-
71,674
-
71,674		 Endowment
Funds
£
-
-
-
5,073
5,073
-
5,073
5,073
5,073
-
-
-
-
5,073
5,073		 Total
Funds
2023
£
99,931
99,931
20,316
223,407
243,723
(15,955)
227,768
327,699
327,699
127,300
123,652
250,952
71,674
5,073
327,699		 Total
Funds
2022
£
102,225
102,225
32,783
173,327
206,110
(15,418)
190,692
292,917
292,917
172,059
90,148
262,207
25,613
5,097
292,917

The financial statements were approved by the members of the PCC and were signed on its behalf by:

--------------------------------------Revd Dr Will Foulger

Date: ____

Charity number: 1133809

The notes on page 11-19 form part of these accounts.

Page 10

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1 Statutory Information

The Parochial Church Council of St Nicholas, Durham is a charity registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention. 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 and 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 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 from donations and legacies includes:

The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from the Strategic Development Fund via Durham Diocese to fund costs incurred as part of Discipling Church.

Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from letting the church building & halls, and from the café.

Investment income represents income generated by the charity's assets and includes bank interest income.

c) Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Contributions in respect of the diocesan parish share are included in the Statement of Financial Activities for all amounts agreed to being payable for the financial year. Any contributions that have not been paid over by the year end are included as a creditor.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting Policies (cont.)

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.

Expenditure on raising funds comprises the costs incurred on running the café.

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.

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.

For inalienable property acquired prior to 2001 there is insufficient cost information available and therefore such assets are not valued in the accounts.

Items purchased or donated for the charity's own use since 1 January 2001 are capitalised when the cost of purchased items, or the fair value of donated items, is more than £2,000 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:

Youth Centre renovation Over 50 years Fixtures & fittings Over 4 years Equipment Over 4 years Office Equipment Over 4 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) Pension scheme arrangements

The charity contributes to the Church Workers Pension Fund, which is a multi-employer defined benefits pension scheme as described in Section 28 of FRS 102. The charity is not able to identify its share of the Scheme's assets and liabilities and, therefore, as permitted by FRS 102, the Scheme is accounted for as if it were a defined contribution pension scheme. Contributions to the Scheme are charged to the Statement of Financial Activities as they become payable. Futher information about the Scheme is disclosed in note 16 'Pension Commitments'.

g) Taxation

h) 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).

i) 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.

Page 12

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

3 Donations and legacies

Donations of cash and similar
Gift Day donations
Other grants receivable
Legacies receivable
Gift aid recoverable
4
Income from charitable activities
Discipling Church income
PCC Activities
Fees retained by PCC (Weddings & Funerals)
Children's & Youth events
Miscellaneous income
5
Income from other trading activities
Café income
Rental income
6
Investment income
Bank interest
Rental income
7
Charitable expenditure
a
Costs incurred directly on specific activities
Ministry expenses:
Parish share
Ministry staff employment costs
Clergy expenses
Home Ministry
Discipling Church
Property expenses:
Operational costs for church
Operational costs for Youth Centre
Grants payable (note 7c)		 2023
£
196,506
21,267
50,496
-
42,997
311,266
2023
£
65,774
1,711
54
2,380
52
69,971
2023
£
9,705
20,352
30,057
2023
£
5,480
160
5,640
2023
£
120,000
37,764
2,145
17,882
71,171
248,962
38,707
3,123
41,830
7,840
298,632		 2022
£
199,530
12,465
27,238
35,591
38,693
313,517
2022
£
93,434
2,053
1,258
-
225
96,971
2022
£
3,381
23,315
26,696
2022
£
822
160
982
2022
£
100,000
26,806
4,134
7,375
100,756
239,071
114,534
2,733
117,267
7,590
363,927

Page 13

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

7 Charitable expenditure (cont.)

7
Charitable expenditure (cont.)
b
Costs incurred on support & administration
Governance costs
Independent examiner's fee
Other
Administrative & support staff employment costs
Church administration costs
Depreciation of tangible fixed assets
Total expenditure		 2,250
301
2,551
45,476
16,064
7,092
71,183
369,815		 960
126
1,086
41,892
14,166
8,233
65,378
429,306

Total expenditure

c Grants payable

Grants for UK and overseas mission
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
The charity's principal grants to institutions comprised:
Church Missionary Society
Bible Society
Latvia Biblical Centre
Church Army (Friends of Bungokho)
Vereinigte Deutsche Missionshilfe (Manasseh & Catrin Tuyizere)
Mission Aviation Fellowship
Cost of raising funds
Café costs		 Institutions
£
7,840
7,840
Institutions
£
7,590
7,590		 Individuals
£
-
-
Individuals
£
-
-
2023
£
2,000
1,500
1,800
1,000
1,000
540
7,840
2023
£
12,337
12,337		 2023
£
7,840
7,840
2022
£
7,590
7,590
2022
£
2,000
1,500
1,800
1,000
750
540
7,590
2022
£
6,097
6,097

8 Cost of raising funds

9 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses

The average monthly number of employees during the year was 9.7 (2022: 8). Most of the charity's activities are carried out by volunteers.

No staff received salaries at a rate of more than £60,000 per annum.

The charity's key management comprise the members of the PCC. No member of the PCC received employment benefits in either the current or preceding year.

Revd Dr Will Foulger, Revd Claire Elwood and Revd Dr Richard Briggs (who were clergy members of the PCC) received a stipend from the Diocese and so they are not employees; some of the Parish Share paid to the Diocese is used to help meet the cost of these stipends. Revd Claire Elwood was provided with accommodation (which is customary for clergy) and the cost of this accommodation to the PCC is disclosed in note 7 'Charitable Expenditure'. The charity also reimbursed expenses to Revd Dr Will Foulger, Revd Claire Elwood, and Revd Dr Richard Briggs; again these costs are disclosed in note 7 'Charitable Expenditure' under the heading 'Clergy expenses'.

Page 14

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

10 Acting as agent

On occasion the charity receives money on behalf of other charities, which it banks and then pays out to these charities. This income is received as agent for these other 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 a creditor.

During the year the charity acted as agent for the Janet Foster fund and, in that capacity:

11 Tangible fixed assets

Cost
At 1 January 2023
Additions
At 31 December 2023
Accumulated depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Youth
Centre
£
149,558
-
149,558
55,431
2,991
58,422
91,136
94,127		 Fixtures &
Fittings
£
11,103
-
11,103
7,403
1,913
9,316
1,787
3,700		 Equipment
£
7,353
4,798
12,151
6,493
491
6,984
5,167
860		 Office
Equipment
£
7,901
-
7,901
4,363
1,697
6,060
1,841
3,538		 Total
2023
£
175,915
4,798
180,713
73,690
7,092
80,782
99,931
102,225

12 Debtors

Falling due within one year:
Tax recoverable
Other debtors
Prepayments and accrued income
h at Bank and in Hand
Cash at bank with immediate access
itors: liabilities falling due within one year
Trade creditors
Pension liability
Accruals
Deferred income
Janet Foster fund
Grant obligations		 2023
£
12,010
2,599
5,707
20,316
2023
£
223,407
223,407
2023
£
-
-
7,049
-
4,796
4,110
15,955		 2022
£
8,541
4,900
19,342
32,783
2022
£
173,327
173,327
2022
£
196
1,387
8,039
-
5,796
-
15,418

Page 15

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

15 Pension commitments

The Church Workers Pension Fund (CWPF)

The PCC participates in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the PCC and the other participating employers.

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, which comprises a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

Pension Builder Classic provides a pension for members for payment from retirement, 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. Bonuses may also be declared, depending upon the investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.

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 contributions are accounted for as if the Scheme were a defined contribution scheme. The pension contributions payable for the year, which have been charged to the Statement of Financial Activities, were £10,514 (2022: £7,444).

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 2022.

For the Pension Builder Classic section, the 2022 valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2024, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 5% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2023. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the 2022 valuation revealed a surplus of £8.5m 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, the PCC could become responsible for paying a share of that employer’s pension liabilities.

Page 16

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

16 Funds

During the year the movements in the charity's funds were as follows:

Designated Funds
Reserve Fund
Ministry Assistants' Fund
St Nicholas' Estate Fund
Teen Aid
Maintenance Fund
Legacy
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Bells
Flower Fund
International Student Fund
Other restricted funds
SNACS - Main account
St Nic's Puppet Ministry
Vicar's Fund
Insulation of Upper Hall
Recovery Group
Churchyard
Streetlights
Satelites
Youth & Children
Big Question - Sixth Form Centre
Endowment Funds
Permanent
Patterson Endowment Fund
Aggregate of funds		 Opening
balance
2023
£
50,860
1,000
1,626
1,071
-
35,591
90,148
172,059
262,207
366
182
1,268
975
6,174
1,067
2,843
5,959
4,779
2,000
-
-
-
-
25,613
5,097
5,097
292,917		 Incoming
resources
2023
£
1,437
-
46
-
848
1,006
3,336
359,480
362,817
-
-
-
-
132
-
80
168
135
41,337
1,827
2,380
7,414
500
53,974
143
143
416,934		 Outgoing
resources
2023
£
-
-
-
-
-
-
-
(372,545)
(372,545)
-
(19)
(12)
-
-
-
-
-
-
(3,775)
(75)
(5,574)
-
(153)
(9,607)
-
-
(382,152)		 Transfers
in the year
2023
£
-
-
-
167
30,000
-
30,167
(31,694)
(1,527)
-
-
-
-
(1,500)
-
-
-
-
-
-
3,194
-
-
1,694
(167)
(167)
-		 Gains and
losses
2023
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Closing
balance
2023
£
52,297
1,000
1,672
1,238
30,848
36,597
123,652
127,301
250,952
366
164
1,256
975
4,806
1,067
2,923
6,127
4,914
39,562
1,753
-
7,414
347
71,674
5,073
5,073
327,699

The transfers referred to above were made for the following reasons:

a) From the SNACS & General Fund to the Satelites fund to subsidise the Youth trip to the Satelites event. This event meets the criteria of the SNACS fund.

b) Interest received by the Patterson Endowment Fund in 2022 & 2023 was transferred to the Teenaid Fund in line with the endowment policy.

Page 17

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

16 Funds (cont.)

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

ysis of net assets by fund
assets and liabilities of the various funds were		 as follows: as follows:
Unrestricted Funds
General Designated Restricted Endowment
funds funds funds funds 2023
£ £ £ £ £
Tangible fixed assets 99,931 - - - 99,931
Debtors 18,866 - 1,450 - 20,316
Cash at bank and in hand 24,458 123,652 70,224 5,073 223,407
Creditors falling due within one year (15,955) - - - (15,955)
127,300 123,652 71,674 5,073 327,699

In the previous year the movements in the charity's funds were as follows:

Opening
balance
2022
£
Designated Funds
Reserve Fund
50,860
Ministry Assistants' Fund
1,000
Market Place Partnership, coffee loun
20,750
Market Place Partnership, PCC funds
2,503
St Nicholas' Estate Fund
1,618
Student Ministry
129
Teen Aid
1,071
Youth Centre - General
(4,235)
Maintenance Fund
30,011
Children & Families
(15)
Discipling Church
12,130
Youth Ministry
-
Legacy
-
115,822
General Unrestricted Funds
143,855
Total Unrestricted Funds
259,677
Restricted Funds
Bells
366
Flower Fund
15
International Student Fund
1,268
St Nic's Pics
229
Other restricted funds
975
PA Fund
321
SNACS - Main account
7,645
St Nic's Puppet Ministry
1,067
Vicar's Fund
2,830
Insulation of Upper Hall
5,931
Recovery Group
4,757
Churchyard
-
Café Fit Out
-
25,404		 Incoming
resources
2022
£
-
-
-
-
8
845
-
-
-
-
75,534
-
35,591
111,978
280,734
392,712
-
200
-
-
13,724
-
29
-
13
28
22
3,200
28,214
45,430		 Outgoing
resources
2022
£
-
-
-
-
-
(936)
-
196
(30,011)
(172)
(74,542)
(42)
-
(105,507)
(284,674)
(390,181)
-
(33)
-
-
(13,724)
(550)
(1,500)
-
-
-
-
(1,200)
(28,214)
(45,221)		 Transfers
in the year
2022
£
-
(20,750)
(2,503)
-
(38)
-
4,039
187
(13,122)
42
-
(32,145)
32,145
-
-
-
-
(229)
-
229
-
-
-
-
-
-
-
-		 Gains and
losses
2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Closing
balance
2022
£
50,860
1,000
-
-
1,626
-
1,071
-
-
-
-
-
35,591
90,148
172,059
262,207
366
182
1,268
-
975
-
6,174
1,067
2,843
5,959
4,779
2,000
-
25,613

Page 18

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

16 Funds (cont.)

Endowment Funds

Permanent
Patterson Endowment Fund
Aggregate of funds		 5,073
5,073
290,154		 24
24
438,166		 -
-
(435,402)		 -
-
-		 -
-
-		 5,097
5,097
292,917

Analysis of net assets by fund

In the previous year, the assets and liabilities of the various funds were as follows:

Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
102,225
-
32,783
-
52,469
90,148
(15,418)
-
172,059
90,148
Unrestricted Funds		 Restricted
funds
£
-
-
25,613
-
25,613		 Endowment
funds
£
-
-
5,097
-
5,097		 2022
£
102,225
32,783
173,327
(15,418)
292,917

Restricted funds

Fund restrictions are included in the fund titles where possible. Where this is not clear, descriptions are given below:

Other restricted funds relates to other one off donations received for specific appeals.

The SNACS funds is for events which met the following criteria: a) a Christian ethos/ element b) an outdoor "education" element c) a residential element

The Vicar's Fund was money given during COVID specifically to help those suffering from financial hardship The Streetlights Fund was transferred to St Nic's for the work carried out by this team.

The Satelites Fund was to subsidise the costs of a youth trip to the Satelites event

Designated funds

The Reserve Fund represents three months worth of essential costs and is set aside to ensure the charity is meeting its reserves policy

Ministry Assistants' Fund is designated for / set aside to fund ministry assistants

The St Nicholas' Estate Fund relates to Church Estates entity

The Teen Aid is to enable & encourage Christian growth of young people at St Nics by providing finance for Christian Centred activities.

The Maintenance Fund was designated to hold funding for any large amount of expenditure needed for the building. The Legacy fund is a legacy left to St Nics in 2022 and is designated as such to allow a specific purpose to be designated for it by the PCC

Endowment funds

The Patterson Endowment Fund is part of the Church Estate entity and cannot be used. The interest received on this is transferred to the Teenaid fund as a requirement of the fund.

17 Transactions with related parties

During the year the charity:

During the year the charity also made the following payments to, or for, related parties:

Page 19

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST NICHOLAS, DURHAM

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income and endowments
EXPENDITURE ON:
Charitable activities:
7
Raising funds
8
Total Expenditure
Net income/(expenditure)
Transfers between funds
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
26		 General
2023
£
261,487
67,591
30,057
345
359,480
360,208
12,337
372,545
(13,065)
(31,694)
(44,759)
172,059
127,300
Unrestric		 Unrestric Designated
2023
£
-
-
-
3,336
3,336
-
-
-
3,336
30,167
33,504
90,148
123,652
ted funds		 Restricted
2023
£
49,779
2,380
-
1,815
53,974
9,607
-
9,607
44,367
1,694
46,061
25,613
71,674		 Endowment
2023
£
-
-
-
143
143
-
-
-
143
(167)
(24)
5,097
5,073		 Total
2023
£
311,266
69,971
30,057
5,640
416,934
369,815
12,337
382,152
34,782
-
34,782
292,917
327,699		 General
2022
£
250,488
2,692
26,696
858
280,734
278,578
6,097
284,674
(3,941)
32,145
28,204
143,855
172,059
Unrestric		 Unrestric Designated
2022
£
35,591
76,379
-
8
111,978
105,507
-
105,507
6,471
(32,145)
(25,674)
115,822
90,148
ted funds		 Restricted
2022
£
27,438
17,900
-
92
45,430
45,221
-
45,221
209
-
209
25,404
25,613		 Endowment
2022
£
-
-
-
24
24
-
-
-
24
-
24
5,073
5,097		 Total
2022
£
313,517
96,971
26,696
982
438,166
429,306
6,097
435,402
2,763
-
2,763
290,154
292,917

Page 20