BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
BROADWATER PAROCHIAL CHURCH COUNCIL
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 10 |
| Independent Examiner's Report | 11 | ||
| Statement of Financial Activities | 12 | ||
| Statement of Financial Position | 13 | ||
| Statement of Cash Flows | 14 | ||
| Notes to the Statement of Cash Flows | 15 | ||
| Notes to the Financial Statements | 16 | to | 24 |
| Detailed Statement of Financial Activities | 25 | to | 26 |
BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
The trustees present their report with the financial statements of the charity for the year ended 31 December 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
1. CHARITY ADMINISTRATIVE INFORMATION
The benefice of Broadwater is situated in the Northern part of the town of Worthing, and pre-dates the town. Broadwater Parish is part of the Diocese of Chichester within the Church of England and has a population in excess of 20,000. Broadwater Parish comprises three church sites - St Mary's Church; St Stephen's Café Church; and Queen Street Church - and also a separate Parish Office.
The registered office and address for correspondence is:
Parish Office, Broadwater Parish Centre 117 Broadwater Road, Worthing BN14 8HT Tel. 01903 823916 Email: office@broadwaterparish.org Website: www.broadwaterparish.org.uk
PCC BANKERS
HSBC Bank PLC 1 Warwick Street Worthing BN11 3DE
CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling ME19 4JQ
LEGAL ADVISORS
Miller Parris Solicitors 3 Cricketers Parade Broadwater Street West Worthing BN14 8JB
INDEPENDENT EXAMINER
Acuity Professional Unit 2.02 High Weald House, Glovers End Bexhill TN39 5ES
Broadwater PCC Registered Charity No. 1133987.
2. STRUCTURE, GOVERNANCE AND MANAGEMENT OF THE CHARITY
The Parochial Church Council (PCC) is registered with the Charity Commission as required by the Charities Act 2011. Its governing document is the Parochial Church Councils (Powers) Measure 1956.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
During the year, the following served as members of the PCC: -
| CLERGY | |
|---|---|
| Team Rector | The Revd Gaz Daly |
| Team Vicar | The Revd Gary Neal |
| Assistant Pastor | Rev Sam Buck |
| PARISH WARDENS | Mr Andrew Rayner |
| Mr John Whitehead | |
| DEPUTY-WARDENS | |
| St Mary's | Mr George Woollard |
| Mr Philip Nokes | |
| St Stephen's | Mrs Mary Stewart |
| DEANERY SYNOD | |
| Mrs Liz Farrow | |
| Mr John Whitehead | |
| Mr Daniel Hay | |
| Mr Matthew Tomson | |
| Ms Sandra Squire | |
| PCC REPRESENTATIVES | |
| St Mary's | Mrs Patricia Westram |
| Mrs Tusa Clark | |
| Mr Richard Hobbs | |
| Mrs Elizabeth Crockett | |
| Mr Andrew Marshall | |
| Ms Lauren Banks | |
| PCC TREASURER | Mr Geoffrey Gair |
| PCC SECRETARY | Mrs Kate Chukweumeka (to August 2024) |
| Mrs Teresa Anderson (from August 2024) |
2.1 PCC Appointments and Responsibilities
The PCC has responsibility for the running of the parish but may delegate some of its work to the Parish Leadership Team (comprising clergy, parish wardens, deputy wardens and treasurer). There are two Church Wardens (known as Parish Wardens) and each church has two deputy wardens. All of these are ex-officio members of the PCC. The method of appointment of PCC members is set out in the Church Representation Rules and in the PCC Constitution. All Church attendees are encouraged to register on the Electoral Roll.
The PCC is responsible for a wide range of matters affecting the parish including health and safety, disability legislation and parish safeguarding policies.
In their capacity as trustees, members of the PCC are responsible for the stewardship of funds and for the appropriate accounting and reporting of the parish finances. Company Law and Charity Law require 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 and of the surplus or deficit for that period. The PCC usually elect a Parish Treasurer to oversee this and to provide regular financial information.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
The PCC works to ensure that each member is equipped to fulfil their role. When new members join the PCC, they are given instructions as to their duties, privileges, and responsibilities on behalf of the Chair and directed to the relevant provisions made by the Charity Commissioners, before being formally welcomed and inducted.
The PCC pays due regard to the published guidance from the Charity Commission on the operation of the Public Benefit requirement under the Charities Act 2006.
2.2 Related Trusts and Charities
There are now no other related Trust or Charities.
2.3 Management of potential risks, uncertainties and their mitigation
The PCC has an ongoing task of reviewing the major risks which impact on the work of the churches in the Parish. The PCC consider that the principal risks and uncertainties are :-
- The health and safety of congregations within church buildings is protected.
The Fabric Team regularly review all buildings to ensure that priority matters are addressed in a timely manner and, that routine maintenance is regularly carried out. Regular PAT testing and fire extinguisher checks etc are conducted.
- Safeguarding children and vulnerable people at all our sites remains a key priority.
Diocesan policy is followed, each site has named Safeguarding Co-ordinators, regular training is provided and DBS checks are up to date.
- The funding of large, unexpected costs associated with St Mary's & the Parish Centre.
These two buildings because of age, are particularly expensive to maintain. A Fabric Committee regularly inspects all Parish properties and lists essential repairs to be carried out and budgeted for each year. The next Quinquennial inspection of St Mary's is due in 2025 and monies are prudently set aside each year in a Designated Quinquennial Fund to help spread the cost. Additionally, a further £400k has been set aside in a Designated Parish Centre Fund, to help cover any potential redevelopment costs. Insurance cover is also in place for all Parish buildings.
- The trend of voluntary income (or tithing) continues to fall.
A key driver behind the annual falls in 'Regular Giving' is the falling attendance numbers seen nationally across many Parish churches. However, those who do give, do so generously and are faithful to the Parish. Average 'Regular Giving' per Adult has increased despite the financial pressures on many households in recent years. This has been made easier with the introduction of new giving mechanism's including the Parish Giving Scheme, card readers and online giving. The Parish needs to rebuild congregation numbers or, must look at reducing costs to maintain a balanced Budget.
- The decreasing number of full time Clergy available within the Diocese.
The Parish is down to two Clergy. Service times were changed in 2022 to better allocate staff resources. A commitment to pay the full 'Parish Ministry Costs' to the Diocese will help to fund the provision of Clergy today & in the future. The Parish needs to understand from the Diocese whether replacements are available in the event of Clergy leaving. An Associate Pastor has been recruited by the PCC and is due to start in February 2024.
2.4 PCC Meeting Attendance
The full PCC met six times in 2024 with an average attendance of 81%. The Parish Leadership Team (PLT) aim to meet between PCC meetings and minutes of their deliberations were received by the full PCC and discussed. The PLT met 6 times in 2024.
The PCC is always looking at opportunities to improve communication with congregation members following meetings held. Church Wardens or a PCC member, aim to highlight three key discussion points to congregations during the "Notices" at the Sunday service following a meeting.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
3. OUR OBJECTIVES AND PURPOSES AS A CHARITY AND CHURCH
For close to a thousand years Christians have met together in Broadwater Parish, coming together before God to worship him and sharing the good news of Jesus Christ in our community. The PCC is not only maintaining this calling but future proofing the fabric of the church for generations to come.
The vision of Broadwater Parish continues to be to 'Love In, Love Out and Love Up'. Working together in the name of Jesus for the revitalisation of the church in Worthing and for the transformation of lives. Linking to The Bible with Matthew 6:33 "Seek first His kingdom and His righteousness".
We recognise we are one Parish with three church sites. A primary objective of the PCC is to work with the clergy in delivering the vision across the parish for the benefit of the whole community from the youngest to the eldest.
The PCC also supports a wide range of missionary and relief endeavours at home and overseas. Many members of our congregations are involved in Christian service of one sort or another and we actively encourage this. We also reach out to our local community and schools. In particular, we have very close links to our two Church of England schools at all levels, including governance.
The PCC encourages co-operation with churches in the deanery and with other denominations in the local area. The PCC recognises its role as part of the Diocese of Chichester and Church of England. Broadwater Parish was chosen to help Chichester Diocese celebrate its 950th Anniversary in February 2025, which was an honour and recognition of the continued ministry of this Parish over many years.
4. WHAT WE DO TO ACHIEVE OUR OBJECTIVES
When planning our activities for the year, our incumbent and the PCC have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance on 'charities for the advancement of religion'. The PCC dutifully considers the safeguarding of children and vulnerable adults on activities.
The key activities can be found on the 'Mission Action Plan'. This is submitted to the Diocese and includes the following example activities to help fulfil our objectives and purpose:-
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Where practical, we want to ensure our churches and buildings are accessible and open to everyone, young & old, living in the community and beyond. This includes live streaming of services when appropriate. We offer space and time for people to easily access our church sites regularly and, provide Sunday and weekday opportunities for Christian worship.
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We aim to use our resources for the provision of pastoral, social, evangelistic and, ecumenical care in the community. Weekly tots and toddler groups, monthly tea times with the elderly, Messy Church, morning prayer opportunities and termly Alpha and Bible courses.
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To provide facilities for Christian baptisms, confirmations, marriages, and funerals.
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Nurturing new and existing believers to grow and mature as Christians, by running a Bible course and provide training and support to our Homegroups and leaders. This year we ran 'Practicing The Way' across our sermon series, in Home Groups and, at a Monday night course..
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Active involvement with local schools and colleges to share our Christian faith. Weekly assemblies are given at our local primary & secondary schools. Working with the staff and helping with curriculum where we are able.
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Putting faith into practice, through prayer and scripture, music and sacrament and actively serving in the local community.
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Offering worship and prayer, learning about the Gospel, in small & large group situations
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Provision of assistance to the poor and needy in the parish and beyond. Working at our St Stephens site with local charities to provide practical support, including 'Saturday Morning Live' sessions from February 2025.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
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Reaching out to the unchurched through social events, after school clubs such as 'Messy Church', Alpha courses, Christians Against Poverty, bereavement counselling, Needles & Pins sessions, etc.
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Maintaining the fabric of the church building as an historic focus of Christian life in the Parish for this and future generations.
5.0 WHAT WE ACHIEVED AND HOW WE AFFECTED BENEFICIARIES' LIVES
5.1. Electoral Roll
| May 2023 | May 2023 | May 2024 | May 2024 | ||||
|---|---|---|---|---|---|---|---|
| TOTAL | 422 | 437 | |||||
| 5.2. Attendance at Church | |||||||
| 2023 Attendance | 2024 | Attendance | |||||
| No. of | |||||||
| services | Adults | Children | Total | Adults | Child | Total | |
| St Mary's Church | 3 | 218 | 43 | 261 | 233 | 51 | 284 |
| St Stephen's Cafe Church | 1 | 40 | 14 | 54 | 33 | 9 | 42 |
| Queen Street Church | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 4 | 258 | 57 | 315 | 266 | 60 | 326 |
5.2. Attendance at Church
The 2023 and 2024 attendance figures are taken as an average throughout the year. The Sunday service at Queen Street has been paused since Easter 2022 because of resource constraints and, have not been restarted. Church members were encouraged to attend services at either the St Mary's or the St Stephen's site. Attendance numbers have fallen by 199 or 38% from 2016 when the average attendance reported was 525 (441 Adults & 84 Children). Factors include the closure of Hosanna and Queen Street Services and generally falling church attendances nationwide. The Parish needs to rebuild congregation numbers.
5.3. Key Achievements in 2024
Broadwater Parish continues to be a Christian presence in the community. With services and activities at St Marys, Queen Street Church and St Stephens, we continue to be One Church on Three sites - Loving In, Loving Out and Loving Up. We are able to do this with the generous and continued support of many people, who often give sacrificially to our ministry and outreaches. We hope and pray that our love for the Parish makes a real difference to those who live and work here.
During the year, we worked with local schools, both secondary and primary, and colleges. Offering support and help with their Christian curriculum and, with weekly assemblies, prayer groups, bible studies and Easter and Christmas services - which often includes a visit to the St Marys or St Stephens church sites.
Youth work continues to go from strength to strength - working with many young people across the Parish - supported by a dedicated team of helpers. We also run a weekly Tots & Toddlers group at our Queen Street site - usually with over 130 attending. A monthly 'Messy Church' is hosted at St Stephens, which has a great impact on our community, bringing together many who are seekers.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
Alpha courses continued to be run each year at our St Stephens site. In February 2025 we started morning sessions at Broadwater School, aimed at people who had difficulty attending evening sessions. These have introduced people to the Christian faith and helped others who are on a faith journey - a number of our guests came to faith during this course. We are grateful for the whole church supporting this evangelistic initiative. We ran the Marriage Preparation Course for a number of wedding couples.
Interim is a ministry that supports those who are bereaved - it is an opportunity to be amongst friends and people working together through similar issues. This group meets twice a month at Queen Street. Tea Time continues at St Marys monthly, with a varied programme, and supported by a great dedicated and gifted team - we often have up 60 guests, with fresh food, cakes and laughter in abundance.
Our weekly football and netball groups have flourished in this last year - the groups attract many from outside of church and give us opportunities to develop friendships. Many have come to Church or sought support from other Christians.
We continued to run summer events for a wide range of interest groups - from walking, classic car rally, needles and pins, quizzes, wine tasting and bible teaching. These provided a great chance for church members to meet up in a relaxed environment and, to
also invite along non-Christian friends. Some groups have continued to meet and grown.
The 'Global Outreach' Team has been very active in 2024 - providing regular updates and professional video resources for the whole Parish. The team are a real blessing to us and our Ministry Partners at home and abroad.
All of our Staff Team have worked beyond their remits to help ministry here in Broadwater. Each of them is a real asset to us and work as a team to help us reach out beyond our church walls. Throughout the year Carl & Vladka have worked hard to provide continued vision and provision for our young people both in church, at a number of events and at school. The office has been run by Teresa Anderson, whilst Kate Chukwuemeka has been on maternity leave. Jacqui Marshall has worked for many years in the Parish providing pastoral care, skill and support to many people, she stepped down in February 2025 - we are so grateful for all she has done in this time. Sam Buck has been a great support across the whole parish, in many different and varied roles.
As Rector, the APCM in April 2025 will be my last one at Broadwater. I want to say "Thank You" to everyone who has helped and supported over the last 9 years in so many different and creative and ways, from singers, musicians, flower arrangers, welcomers, servers - there are many more of you to list. Thank you. I believe God has been at work during this time and has much more to do in this Parish.
6.0 STAFF AND OTHER RESOURCES
The Parish Clergy comprises of the Rector who Chairs the PCC and a Team Vicar, who are both employed directly by the Diocese. They are supported by three retired Clergy - Rev Bob Groves, Rev Andrew Smith and Rev George Butterworth - who each make a tremendous difference to our ministry.
The PCC employed a Staff Team of five people to support the Ministry of the Parish and the Rector in 2024 and, also four cleaners to cover the three church sites and the Parish Centre. The Staff Team comprises of a Children's Minister, an Under 5's Children's Minister, a part time Pastoral worker and two part-time Administrators.We are supported by an Associate Pastor with key responsibilities which include working with the youth in the Parish. This post is partly funded from a restricted legacy. The two Children's Ministers are currently fully funded each year by a very generous, separate restricted donation.
The church also benefits from the dedicated work of a great number of volunteers across the Parish. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
The PCC has the use of St Mary's church, which is owned by the Church of England. The PCC is responsible for the repair and upkeep of the church. Additionally, the PCC owns the St Stephen's and Queen Street sites, the Parish Centre and, the residential property at 67 Normandy Road. The residential property at 53 Lavington Road (68% owned by the PCC and 32% owned by the Diocese) was sold in 2022. These funds remain 'Ring Fenced' as a Designated Fund by the PCC, as a project continues to look at the costs to develop and improve the Parish Centre for wider church and community use.
7.0 THE YEAR AHEAD (2025)
The Rector announced in March 2025 that he will be leaving in June 2025 to take up a new role in London. The Parish is now at a time of waiting, praying and reflecting. The Staff Team and Parish Wardens in particular, will need the support and love of the Parish during this season, as we prepare for the next Rector/ Incumbent. The PCC will continue to meet and lead our Parish during this time.
Do pray for the future and, that God has bold and exciting plans for each of us and Broadwater Parish.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
FINANCIAL REVIEW 8.1 Income and Expenditure.
Broadwater Parish is an independent Registered Charity, wholly reliant on the generous giving of our church members. Monies are spent across the whole Parish to share the Good News of the Gospel, with 10% of 'Regular Giving' used to financially support Mission Partners at home and abroad.
Thank you to everyone who is able to reflect God's generosity to us, by financially supporting and serving in the Parish. This includes 109 'Regular Givers' who do so through the 'Parish Giving Scheme' (PGS) or Bank Standing Order (BSO). The PGS is by far the best method to regularly give and, 51 of our church family do so. Please may I encourage the 58 who regularly give through BSO to consider switching to the PGS, as it saves a huge amount of accounting work.
I continue to provide monthly Parish Accounts to all PCC Members and, make these available to every church member through a link in the Weekly Newsletter and, they are available on the Parish Website. This transparency provides an opportunity for everyone to understand and scrutinize what monies come in to the Parish and, how it is spent. I would encourage everyone to review the Accounts and raise any queries to myself or to a member of the PCC. Regular up to date Accounts, made available to the PCC & church members, is a key layer of financial control & governance.
Our Annual Accounts for 2024 will be published for the APCM having gone through an Independent Examination. The key figures are that the Parish spent £494k, received £401k and, had to use £93k from Reserve Funds to meet all obligations. The two pie charts below illustrate where all monies were spent and how this was financed: -
The 'Pie Chart' on the left shows where the £494k was spent. It costs £40k a month to run the Parish. Out of every £1 spent, 35p is on Diocese/Clergy costs, 25p for the Staff Team salaries, 13p on maintenance of all Parish buildings, 9p on electric, gas, water, phone & insurance, 7p to Mission Partners and 11p on services, outreach & admin etc.
The 'Pie Chart' on the right, shows receipts totalling £401k and the deficit of £93k (the red coloured segment). In summary, for every £1 spent to in running the Parish, just 44p comes from Regular Giving, 37p from other receipts with, 19p having to come from Reserve Funds to meet our commitments.
The Parish has run at a deficit for five years and Reserve Funds have reduced accordingly. Our aim is to work within God's provision and to deliver a Balanced Budget in 2025. To help achieve this, we will be significantly reducing our contribution to the Diocese from £153k to £72k for providing our two Clergy.
We deeply appreciate those who regularly give. With 'Regular Giving' only providing 44p for every £1 spent, we do need more people to prayerfully consider giving in this way, so that we can fully meet commitments without continually dipping into Reserve Funds. The alternative is to further reduce costs and resources, which are already prudently managed. Cost cutting hasn't been necessary in recent years due to the receipt of a large legacy in 2019 which has helped to sustain the Parish. Leaving a legacy gift to the Parish is also a wonderful way to generously support and bless future generations of worshippers.
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BROADWATER PAROCHIAL CHURCH COUNCIL
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024
8.2 Total Parish Reserves or Net Assets.
Income of £400,828 over Expenditure of £494,113 gave a Net Deficit of £93,285 for 2024. 'Net Assets' or 'Parish Reserves' at the end of 2024 fell by the Net Deficit from £1,217,204 to £1,123,919. These Reserves can be broken down to £727,678 in the Bank and £396,241 in Property. Parish property shown in the Accounts is valued at the initial purchase price, so its accounting value is low given that the real, tangible value is only realised on the sale of a property and, the Market Value of the Parish properties is, therefore, considerably higher.
The Parish Reserves held in the bank of £727,678 may appear high but, contained within this figure is "Restricted Funds" and monies already "Designated" for spending totalling £592,366. This figure includes £395,096 'Ring Fenced' by the PCC from the sale of Lavington Road in 2022 to, potentially, improve the Parish Centre and, a balance of £105,152 from Roger's legacy "for youth work and for the payment of the salary of a youth worker". The actual 'Unrestricted Cash Reserves" held in the bank for Parish use at the end of 2024 is £135,312.
8.3 Summary
Considerable investments have been made in the Parish since 2019 with the completion of the Re-Ordering project at St Mary's, essential ongoing maintenance of all Parish buildings, the employment of additional paid staff in Youth and Children's Work, together with upgrades to audio and visual equipment enabling livestreaming of services. These investments have come about from the generosity of our church members and, was needed to 'future proof' the Parish buildings and equipment for their wider use today and for future generations. There are £395k of funds held and currently 'Ring Fenced' for the Parish to use, potentially, for improvements to the Church Centre. This project commenced in 2024 with the engagement of an architect and, further details will be communicated to church members in the first quarter of 2025.
Looking ahead, the forecast or Budget is that expenditure in 2025 will exceed income by £45,000 which may further reduce the £135,312 of 'Unrestricted Cash Reserves' held by the Parish at the end of 2024. The Parish will be able to meet their financial commitments in 2025 but need actions aimed at increasing church membership and income or, further reducing expenditure.
Reserves & Legacy Policies
The PCC policy is to maintain a minimum balance on the general 'Unrestricted Cash Reserves' (i.e. excluding 'Designated & Restricted Funds' and excluding property) which equates approximately to three months (maximum of six months) of regular running costs. This is to ensure continued financial security, provide for unforeseen expenditure and, to maintain cash flow for the provision of Clergy, staff salaries and other regular church running costs.
The closing 'Unrestricted Cash Reserves' balance of £135,312 represents three months of regular running costs (3 x £40k = £120k) giving sufficient cash flow in 2025 for the Parish to pay bills as they fall due.
Should 'Unrestricted Cash Reserves' exceed six months of running costs the PCC will develop a clear plan for the surplus, identifying proposed spending plans and timescales. This usually involves improving the fabric of our buildings and updating obsolete equipment, in projects aimed at improving our infrastructure for future generations of worshippers. The PCC does hold a mixture of 'Designated' and 'Restricted' Funds for these purposes totalling £457,796 for these purposes, with £395k set aside for the Parish Centre, £38k set aside for the Quinquennial inspection of St Mary's church scheduled in 2025 and, £24k for additional maintenance work at St Mary's.
From time to time the PCC receives legacies. We aim to spend such money as soon as possible after receiving the legacy, in accordance with the wishes of the legator.
STATEMENT OF DISCLOSURE OF INFORMATION TO INDEPENDENT EXAMINERS
So far as the PCC are aware, there is not relevant information of which the charity’s independent examiners are unaware, and they have taken all steps that they ought to have taken as trustees in order to make themselves aware of any relevant information and to establish that the PCC’s independent examiners are aware of that information.
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BROADWATER PAROCHIAL CHURCH COUNCIL
Independent examiner's report to the trustees of Broadwater Parochial Church Council
I report to the charity trustees on my examination of the accounts of Broadwater Parochial Church Council (the Trust) for the year ended 31 December 2024.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
Debbie Hargreaves FCA ACA Acuity Professional Partnership LLP Unit 2.02 High Weald House Glovers End Bexhill East Sussex TN39 5ES
19-03-2025 Date: .............................................
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BROADWATER PAROCHIAL CHURCH COUNCIL
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024
| Notes INCOMING RESOURCES FROM CHARITABLE ACTIVITIES FROM Voluntary income 2 Charitable activities 5 Church Activities Activities for generating funds 3 Investment income 4 Other income Total EXPENDITURE ON Charitable activities 6 Church Activities Charitable activities Total NET INCOME/(EXPENDITURE) Transfers between funds 11 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
UnrestrictedRestricted funds funds £ £ 347,676 - 6,492 - 11,490 - 29,551 - 5,619 - 400,828 - 453,239 - 40,874 - 494,113 - (93,285) - 29,021 (29,021) (64,264) (29,021) 1,045,901 171,303 981,637 142,282 |
2024 Total funds £ 347,676 6,492 11,490 29,551 5,619 400,828 453,239 40,874 494,113 (93,285) - (93,285) 1,217,204 1,123,919 |
2023 Total funds £ 346,615 2,959 19,060 31,414 5,745 405,793 438,722 51,250 489,972 (84,179) - (84,179) 1,301,383 1,217,204 |
|---|---|---|---|
The notes form part of these financial statements
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IIROADWA TLR PAROCHIAL CHURCH COUNCIL 31 DICEMBIR 2•24 24 Total r•Ads 2023 Tol•l fund• ds FtXED ASSETS l•Awbk 10 396241 CURRENT ASSETS 142S2 727.678 820,963 14 TOTAL ASSETS LE&S CURRENT 981.637 142382 1217204 NET ASSETS 14 17 li S31J53 S.4() 55.452 4470 29.829 I•S.152 129.3(K) 660 12 174 14 171303 TOTAL FUNDS 17 1123919 aL( Pa8e13
BROADWATER PAROCHIAL CHURCH COUNCIL
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash used in operating activities Cash flows from investing activities Other income Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2024 £ (128,455) (128,455) 5,619 29,551 35,170 (93,285) 820,963 727,678 |
2023 £ (121,340) (121,340) 5,745 31,414 37,159 (84,181) 905,144 820,963 |
|---|---|---|
The notes form part of these financial statements
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BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net expenditure for the reporting period (as per the Statement of Financial Activities) Adjustments for: Profit on disposal of fixed assets Interest received Decrease in creditors Net cash used in operations |
2024 £ (93,285) (5,619) (29,551) - (128,455) |
2023 £ (84,179) (5,745) (31,414) (2) (121,340) |
|---|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
| At 1.1.24 | Cash flow | At 31.12.24 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 820,963 | (93,285) | 727,678 |
| 820,963 | (93,285) | 727,678 | |
| Total | 820,963 | (93,285) | 727,678 |
The notes form part of these financial statements
Page 15
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. ACCOUNTING POLICIES
BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the FRS 102 Charities SORP.
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain fixed assets.
FUND ACCOUNTING
General funds represent the funds of the Parochial Church Council (PCC) that are not subject to any restrictions regarding their use and which are available for application for the general purposes of the PCC.
Funds designated for a particular purpose by the PCC are also unrestricted.
Restricted funds represent (a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest, and (b) donations or grants received for a specific object or requested by the PCC for a specific object. The funds may only be expended on the specific object for which they are given. Any balance remaining unspent at the end of the year must be carried forward as a balance on that fund. The PCC does not usually invest separately for each fund.
The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body nor the accounts of church groups of informal gatherings of church members.
INCOMING RESOURCES
Voluntary income and capital sources
-
Collections are recognised when received by or on behalf of the PCC.
-
Planned giving receivable under covenant is recognised only when received
-
Income tax recoverable on covenants or gift aid donations is recognised when the income is received.
-
Grants and Legacies to the PCC are accounted for as soon as the amount due is received.
-
Funds raised by the fete, garden party and similar events are accounted for gross.
-
Sales of books and magazines from the church bookstall are accounted for gross.
Other ordinary income
Rental income from the letting of church premises is recognised when rental is paid.
Income from investments
Dividends and interest are accounted for when received. Tax recoverable on such income is recognised in the same accounting year.
RESOURCES EXPENDED
All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity. Where costs cannot be directly attributed they are allocated to activities on a basis consistent with the use of resources.
Overheads and salaries are allocated between expense headings on the basis of time spent.
Costs of generating voluntary income comprise the costs associated with attracting voluntary income.
Fundraising trading costs comprise the costs of trading for fundraising purposes.
continued...
Page 16
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
1. ACCOUNTING POLICIES - continued
RESOURCES EXPENDED
Church Activities includes those costs incurred by the PCC in the delivery of its objectives and services for the benefit of the parish. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs are those incurred in connection with the management of PCC's organisational administration and compliance with the constitutional and statutory requirements.
TRANSFER
The Parochial Church Council are permitted to make transfers to correct shortfalls or mis-allocations between funds
TAXATION
The charity is exempt from tax on its charitable activities.
FINANCIAL INSTRUMENT
The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognized in the charity balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group charities that are classified as debt, are initially recognized at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payment discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
continued...
Page 17
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
2. VOLUNTARY INCOME
| Unrestricted funds £ Planned giving 198,796 Collection at services 16,398 Donations and appeals 95,588 Income tax recoverable 33,817 Grants 3,077 347,676 3. ACTIVITIES FOR GENERATING FUNDS Unrestricted funds £ Room hire 11,039 Other 451 11,490 4. INVESTMENT INCOME Unrestricted funds £ Interest received and Rental income 29,551 5. INCOME FROM CHARITABLE ACTIVITIES Activity Fees Church Activities |
Restricted funds £ - - - - - - Restricted funds £ - - - Restricted funds £ - |
2024 Total funds £ 198,796 16,398 95,588 33,817 3,077 347,676 2024 Total funds £ 11,039 451 11,490 2024 Total funds £ 29,551 2024 £ 6,492 |
2023 Total funds £ 189,710 19,552 73,330 57,148 6,875 |
2023 Total funds £ 189,710 19,552 73,330 57,148 6,875 |
|---|---|---|---|---|
| 346,615 | ||||
| 2023 Total funds £ 17,520 1,540 |
||||
| 19,060 | ||||
| 2023 Total funds £ 31,414 |
||||
| 2023 £ 2,959 |
continued...
Page 18
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
6. CHARITABLE ACTIVITIES COSTS
| Church Activities Charitable activities |
Direct Costs £ 453,239 37,225 490,464 |
Support costs (see note 7) £ - 3,649 3,649 |
Totals £ 453,239 40,874 |
|---|---|---|---|
| 494,113 |
7. SUPPORT COSTS
| SUPPORT COSTS | |
|---|---|
| Governance | |
| costs | |
| £ | |
| Charitable activities | 3,649 |
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2024 nor for the year ended 31 December 2023.
TRUSTEES' EXPENSES
There were no trustees' expenses paid for the year ended 31 December 2024 nor for the year ended 31 December 2023.
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOMING RESOURCES FROM CHARITABLE ACTIVITIES FROM Voluntary income Charitable activities Church Activities Activities for generating funds Investment income Other income Total EXPENDITURE ON Charitable activities Church Activities Charitable activities Total |
Unrestricted Restricted funds funds £ £ 346,615 - 2,959 - 19,060 - 31,414 - 5,745 - 405,793 - 438,722 - 51,250 - 489,972 - |
Total funds £ 346,615 2,959 19,060 31,414 5,745 |
|---|---|---|
| 405,793 | ||
| 438,722 51,250 |
||
| 489,972 |
continued...
Page 19
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| NET INCOME/(EXPENDITURE) Transfers between funds Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 10. TANGIBLE FIXED ASSETS Freehold Plant and property machinery £ £ Cost At 1 January 2024 and 31 December 2024 396,241 1,291 Depreciation At 1 January 2024 and 31 December 2024 - 1,291 Net book value At 31 December 2024 396,241 - At 31 December 2023 396,241 - Freehold land and property Freehold land Rear of Queen Street Freehold property Broadwater centre Clergy houses 67 Normandy Road 37 Angola Road TOTAL |
Unrestricted Restricted funds funds £ £ (84,179) - 23,080 (23,080) (61,099) (23,080) 1,107,000 194,383 1,045,901 171,303 Moveable church furnishings Equipment £ £ 74,426 29,695 74,426 29,695 - - - - £ £ 1987 1995 93,804 1997 145,698 |
Unrestricted Restricted funds funds £ £ (84,179) - 23,080 (23,080) (61,099) (23,080) 1,107,000 194,383 1,045,901 171,303 Moveable church furnishings Equipment £ £ 74,426 29,695 74,426 29,695 - - - - £ £ 1987 1995 93,804 1997 145,698 |
Total funds £ (84,179) - (84,179) 1,301,383 1,217,204 Totals £ 501,653 105,412 396,241 396,241 16,057 140,682 239,502 396,241 |
|
|---|---|---|---|---|
continued...
Page 20
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
11. MOVEMENT IN FUNDS
| Unrestricted funds Unrestricted - General Designated - Quinquennial and Audio/Visual Designated - Parish Centre Fund Restricted funds Restricted - St Mary's Re-ordering Restricted - Parish Youth Work Restricted - Childrens Pastor Salary TOTAL FUNDS Net movement in funds, included in the above a Unrestricted funds Unrestricted - General TOTAL FUNDS |
At 1.1.24 £ 590,406 55,452 400,043 1,045,901 29,829 129,300 12,174 171,303 1,217,204 re as follows: |
Net movement in funds £ (93,285) - - (93,285) - - - - (93,285) Incoming resources £ 400,828 400,828 |
Transfers between funds £ 34,432 (464) (4,947) 29,021 (5,359) (24,148) 486 (29,021) - Resources expended £ (494,113) (494,113) |
At 31.12.24 £ 531,553 54,988 395,096 981,637 24,470 105,152 12,660 142,282 1,123,919 Movement in funds £ (93,285) (93,285) |
||
|---|---|---|---|---|---|---|
continued...
Page 21
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
11. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds Unrestricted - General Designated - Quinquennial and Audio/Visual Designated - Parish Centre Fund Restricted funds Restricted - St Mary's Re-ordering Restricted - Parish Youth Work Restricted - Childrens Pastor Salary TOTAL FUNDS |
At 1.1.23 £ 634,255 70,752 401,993 1,107,000 53,833 129,300 11,250 194,383 1,301,383 |
Net movement in funds £ (84,179) - - (84,179) - - - - (84,179) |
Transfers between funds £ 40,330 (15,300) (1,950) 23,080 (24,004) - 924 (23,080) - |
At 31.12.23 £ 590,406 55,452 400,043 1,045,901 29,829 129,300 12,174 171,303 1,217,204 |
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds Unrestricted - General TOTAL FUNDS |
Incoming resources £ 405,793 405,793 |
Resources Movement expended in funds £ £ (489,972) (84,179) (489,972) (84,179) |
|---|---|---|
continued...
Page 22
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
11. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds Unrestricted - General Designated - Quinquennial and Audio/Visual Designated - Parish Centre Fund Restricted funds Restricted - St Mary's Re-ordering Restricted - Parish Youth Work Restricted - Childrens Pastor Salary TOTAL FUNDS |
At 1.1.23 £ 634,255 70,752 401,993 1,107,000 53,833 129,300 11,250 194,383 1,301,383 |
Net movement in funds £ (177,464) - - (177,464) - - - - (177,464) |
Transfers between funds £ 74,762 (15,764) (6,897) 52,101 (29,363) (24,148) 1,410 (52,101) - |
At 31.12.24 £ 531,553 54,988 395,096 981,637 24,470 105,152 12,660 142,282 1,123,919 |
|---|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds Unrestricted - General TOTAL FUNDS |
Incoming resources £ 806,621 806,621 |
Resources Movement expended in funds £ £ (984,085) (177,464) (984,085) (177,464) |
|---|---|---|
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2024.
continued...
Page 23
BROADWATER PAROCHIAL CHURCH COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024
13. PURPOSE OF FUNDS
Designated funds
Audio Visual Project - upgrading of sound and visual equipment at St Mary's and the Parish.
Quinquennial Fund - maintenance work required on St Mary's Parish Church.
St Stephens Cafe Church - various social and community activities.
Global Outreach - To financially support the domestic and overseas 'Mission Partners' of Broadwater Parish.
Parish Centre Project - Funds received in 2022 from the sale of Lavington Road and set aside by the PCC to, potentially improve the Parish Centre building.
Restricted funds
St Mary's Re-ordering - to fund the re-ordering of St Mary's church i.e. the development of the building and fabric to better meet the current and future needs of the church and local community.
Youth Work - a legacy received in 2019 'for Youth Work and for the payment of the salary of a Youth Worker'
Childrens Pastor & Pre School Worker - balance of an annual donation to pay for the salaries of two staff members.
Page 24
BROADWATER PAROCHIAL CHURCH COUNCIL
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024
| Unrestricted Restricted funds funds £ £ INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Voluntary income Planned giving 198,796 - Collection at services 16,398 - Donations and appeals 95,588 - Income tax recoverable 33,817 - Grants 3,077 - 347,676 - Activities for generating funds Room hire 11,039 - Other 451 - 11,490 - Investment income Interest received and Rental income 29,551 - Charitable activities Fees 6,492 - Other income Other income 5,619 - Total incoming resources 400,828 - EXPENDITURE Charitable activities Missionary and charitable giving 36,245 - Ministry costs 153,262 - Church running expenses 61,233 - Office salaries 121,128 - Light and heat 36,473 - Maintenance, Security & Repair 63,849 - Administration 8,959 - Insurance 8,335 - Obligations & subscriptions 980 - St Mary's Re-Ordering - - 490,464 - |
2024 Total funds £ 198,796 16,398 95,588 33,817 3,077 347,676 11,039 451 11,490 29,551 6,492 5,619 400,828 36,245 153,262 61,233 121,128 36,473 63,849 8,959 8,335 980 - 490,464 |
2023 Total funds £ 189,710 19,552 73,330 57,148 6,875 346,615 17,520 1,540 19,060 31,414 2,959 5,745 405,793 46,491 148,423 74,148 102,642 42,297 26,975 11,482 8,751 1,840 24,004 487,053 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 25
BROADWATER PAROCHIAL CHURCH COUNCIL
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024
| Unrestricted Restricted funds funds £ £ Support costs Governance costs Accountancy and legal fees 3,649 - Total resources expended 494,113 - Net expenditure (93,285) - |
2024 Total funds £ 3,649 494,113 (93,285) |
2023 Total funds £ 2,919 489,972 (84,179) |
|---|---|---|
This page does not form part of the statutory financial statements
Page 26