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2021-12-31-accounts

Charity Registration No. 1134028

FERNDOWN PAROCHIAL CHURCH COUNCIL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

10 Bridge Street Christchurch Dorset BH23 1EF

FERNDOWN PAROCHIAL CHURCH COUNCIL

CONTENTS

Page
Company informaton 1
Trustees' report 2 - 9
Independent examiner's report 10
Statement of fnancial actvites 11
Balance sheet 12
Notes to the fnancial statements 13 - 26

FERNDOWN PAROCHIAL CHURCH COUNCIL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Rev. S Pix D Howshall M Orman Rev P Chabala R Jobbins D White R Broadley RA Loader Mrs K Scarfe O Chappell A Thornton (Appointed 27 May 2021) Mrs Diane French (Appointed 29 May 2022) Mrs Sarah Collins (Appointed 29 May 2022) Mr Alan Field (Appointed 18 September 2021) Mr Michael Raven (Appointed 27 July 2021) Rev Oliver Fricker (Appointed 27 June 2021) Mrs Vera Waters (Appointed 27 May 2021) Mr Ryan Baldwin (Appointed 27 May 2021) Mr Barry Robertson (Appointed 27 May 2021) Mrs Tracey Nicholls (Appointed 28 June 2021)

Charity number

1134028

Principal address St Marys Church Hall Church Road Ferndown Dorset United Kingdom BH22 9EU Independent examiner TC Group 10 Bridge Street Christchurch Dorset BH23 1EF

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) and the Church Accounting Regulations 2006

Objectives and activities

Status

St Mary's is the local 'Church of England' church, led and managed by the Parochial Church Council (PCC) which in turn is chaired by the incumbent of the church, Rev Sarah Pix. The PCC is given a mandate to further the work of the mission of the church in its worship and witness. Our stated aim is 'Transformation through Jesus'. This is done in many ways, some of which are described in the following pages.

Vision Statement: Transformation through Jesus

St Mary's can best be described as a family rather than an organisation, and as such, its aim and objectives are really relational. The Trustees have identified ten values which underpin our work and method of operation which reflect this:

Encountering Jesus, Celebration: a worshipping people, Kingdom Living; People of Faith; People of the Word and Spirit; Praying People; Equipping the Saints; Relational: Loving and Serving People; People Set Free. These values recognise our core objectives of growing and encouraging those who belong to St Mary's, equipping them to live the Christian life day to day, and reaching out with the Good News and love of Jesus to our community in a desire to demonstrate the goodness of God. These are still well summarised by the following three aims:

  1. To be rooted in Jesus through worship, prayer, bible study, small groups, and public worship that is offered in a variety of styles.

  2. Growing up to maturity in Jesus through discipleship, pursuing the Presence of God, service, sacrificial giving, and leadership development.

  3. Reaching Out with Jesus through our welcome and witness. The quality of our love, care and relationships is key to extending God's Kingdom in this locality. We believe that the Good News of Jesus is good news for everyone, and that in Him all the solutions to the deepest needs of humanity can be found and so we intentionally share Him.

  4. 2 -

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Public Benefit

Throughout this report we have illustrated the impact we are having on the local community. We exist to benefit the wider community but a by-product of this objective is that we benefit those that join us and are gathered in to the Church who in turn multiply the impact on the wider public. The PCC have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The following information demonstrates this duty and measurement of impact as a proactive part of managing the Charity.

The trustees regularly review our aims, objectives and activities of the charity and communicate this to the PCC body as a whole at least on an annual basis. The trustees have considered the Charity Commission's general guidance on public benefit and its supplementary guidance on the advancement of religion for the public benefit.

Volunteers

Unpaid volunteers contribute a large amount in terms of time to the work of the PCC, including working in the office, cafe, church services, childrens work and visiting. The value of this time is considered too hard to quantify and not included as income in the charity accounts.

Achievements and performance

Psalm 103:1-2 says “Praise the Lord, my soul; and all my inmost being, praise his holy name. Praise the Lord, my soul, and forget not all his benefits”. Indeed, the Lord has been so faithful to us in so many ways in the past year despite the challenges of COVID-19. We began the year in January with another national lockdown. St Mary's PCC took the difficult decision to suspend in-person church services and move to providing on-line services instead. That decision was a difficult one made prayerfully, not out of fear, but with hope in our loving heavenly Father, trusting him to help us navigate through the times ahead with love, faith and courage. Later, we were able to have in-person service with the provision of live-streaming for those who were unable to joint us on site.

We also enjoyed the opportunities to continue to build up links across the Benefice, with continued joint gatherings, including the evening monthly worship night – an opportunity to lay aside everything else and just focus on worshipping Jesus. Worship is such a key weapon in the spiritual battle, and such an important way of reminding ourselves of the truth of who He is and what He has done when everything else has been shaken.

Those who had participated in our joint Benefice services have found them to be a great encouragement!

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Coming out of the Covid crisis, the recovery phase was quite complex at times, particularly navigating the various changes in government regulations and helping people feel confident to resume meeting together. But our God is faithful, and St Mary's is blessed with many gifted, dedicated and loving people who had tirelessly served the Lord, our church and our community.

During the year we had special moments to say goodbye to Ann Scouse and Paul Craddock. We thank God for the love and faithful service they demonstrated through their ministries. It was with great joy, and thankfulness for the Lord's provision, that we successfully appointed a new Children and Families Pastor in Ryan Baldwin, a new Café Team Leader in Maria Wilson, and we also welcomed Amy Boon as part of our Grow Project.

It was also with great delight that the PCC welcomed the very special news that Oli Fricker was tojoin us with his family in the summer of 2021 as our new curate. We can celebrate the fact that we are blessed with a wonderful staff team who, through their faithful leadership, love and servant at ude, continue to care for the members of our church and our community, and lead us in extending the kingdom of God in Ferndown.

In June 2022, it was quite clear that we were in a new season as St Mary’s, with many changes for us as a church family. With some of our senior staff team moving on, and with ongoing adjustments after the shockwaves of the pandemic, we had been seeking the Lord for where he wants to take us. With Jesus, the best is always yet to come! He takes us from ‘glory to glory’! And we can trust him as the One who has good plans for His people (Jer. 23: 11) and as the One who calls us and is faithful (1 Thess. 5: 24).

We sensed the Lord was calling us to come higher, to move from maintenance to growth, to begin running with him, to step up into the huge work that he has entrusted into our hands. We needed to be prayerfully thinking about what sort of a church we needed to be in order to reach all generation of people, many of whom have never heard of Jesus or experienced his love and presence.

Something that we had been mulling over at PCC for some time now, is whether our current pattern of services was going to aid a growing church and a growing vision. One of the things that is great about St Mary’s is the variety of styles of worship and types of service. There are many ways in which we can worship God, and we all have our preferences. From His point of view, he always looks at the heart - and as long as our worship is in Spirit and in Truth then it delights Him. There is so much to celebrate about our current offering! I hope that we will always have a variety of expressions of worship at St Mary’s and that each of those services will be growing - not just numerically but also in spiritual depth and real worship.

Having said that, we were conscious that we are living in a rapidly changing society. What could we do to ensure that there is a lively, thriving community of faith here for all generations in the years’ to come? A number of people have commented that we don’t seem to have as many children and young families as we used to - particularly at the 10.45 service. Breakfast Church started eight years ago, and it has been a huge success, attracting many families, some of whom have not been to church before. The aim has been to be genuinely all-age, with an approachable style of worship, ensuring that there is space for people to encounter Jesus. Since the outset of Breakfast Church, we have been grappling with the question of how to make sure that this congregation are being discipled, and how can we help them to feel a part of the wider St Mary’s? Mulling over these questions, as well as looking at our reduced resources with the departure of Sarah at the end of August, the staff with the approval of the PCC had come up with a plan to rethink our Sunday services.

This September, we followed the service pattern of August. We had one main service at 10:30am, with children’s work and a simplified Breakfast Church running at 9 am.

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

In October and onwards, Breakfast church and the 10:45 service became one service. This service is at 9am in the church and the traditional service that was at 9am is now at 10:45am. Below is how the Sunday services now look like from October:

Change is not always easy. But I believe that these change will be of benefit to us as a church, and to those who have not engaged with us yet. It is my prayer that in taking this step, we will grow together as an intergenerational community wholeheartedly following Jesus. And shining more brightly, we will carry the gospel into every part of our community and beyond.

Every blessing to you all,

Patches

The Rev’d Patches Chabala

Team Vicar, St Mary’s Ferndown & Hampreston

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Financial review

It’s been another hard year with income down due to covid restrictions and people’s reluctance to venture out resulting in the main areas of Donations, Café sales and the room hire being adversely affected. Expenses have also been affected, particularly with the ending of the furlough scheme as we have had to meet the full salary costs but we were still able to pay the full Diocesan share and honour in full the 5 Charities that we support. We also set aside 1% of our income on a monthly basis to go into a designated ‘Capital Fund’ for use when we need to purchase new equipment etc. The Beacon Project is continuing at a steady pace and probably will take another 2 years to complete this phase subject to funds being available. The project is financed out of the restricted ‘Beacon Project Fund’ and we are very grateful to those people that still give to this project.

Looking at 2022 we have some serious financial challenges as we have forecast that we will have a deficit of approximately £40,000 and looking even further into 2023 we cannot sustain this sort of loss.

Reserve Policy

We aim to keep one months budgeted expenditure in our General Fund where possible to ensure that our obligations to Staff, Diocese and other expenses are never a concern.

Risk assessment

All adults working with children have been cleared with the DBS (formerly CRB) or their forms are being processed at the moment. We have a new Parish Safeguarding Representative who is working closely with those involved in working with vulnerable adults to insure that they also have the relevant DBS checks. We now have a list of authorised First Aiders who are regular church members to cover the main acts of public worship on Sundays and many of our mid-week ministries. In 2016 we installed a defibrillator as a public service and a number of church members have been trained in its proper use. Risk Assessment issues are addressed at the monthly PCC meetings or its Standing Committee, and appropriate action or precautions put in place depending on the level of risk.

In connection with the building fabric and premises during the year, the following aspects have duly been undertaken.

The Café had an Environmental Health Inspection and received a 5* rating.

Financial controls

Invoices are authorised and signed by two members of the PCC if over £1,000. Under £1,000 only one PCC member need authorise the invoices. The Finance administrator pays the invoices and the Treasurer countersigns either the cheque or online with the bank.

Reconciliations are done on a monthly basis and reports are produced for the PCC to show Income and Expenditure against a budget that is set for the year.

Finance Coordinator has been used over many years as our main software system but we have decided to change on 1st January 2022 to Quickbooks as we have found that FC does not have the ability to cope with VAT that we have to pay on the Café sales and we have had to run two systems. At present we will be keeping the Donations Coordinator system to run our gift aid claims to HMRC.

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Short term

The PCC and staff team gather regularly to seek God's guidance, and to discern His priorities for us going forward. This has been a year of going back to the basics of our Mission, and prayerfully discerning how best to continue reaching out to the people of Ferndown.

At the time of writing we are slowly emerging from Lockdown. It is again a time of great change, and great need. Some of the ways in which we are looking to help Ferndown navigate this 'Recovery phase' are listed here:

With the anonymous gift we received, we are upgrading our audio-visual facilities to allow live-streaming and other digital content.

We are also excited to be welcoming a new Curate, Oli Fricker and his family, in June.

Medium Term

A major review of our activities to consider what needs to be resurrected, what has had its time and what new vision is bubbling up. Reviewing our pattern of services in light of changes through Covid. Appointing a new full-time Children and Families Pastor

Writing a Digital Strategy about how to engage best with our online congregations.

Revamping our Small Groups by looking at their effectiveness and offering, to increase capacity to receive more members.

Training Church Members in Practicing the Presence of Christ, and operating in the gifts of the Spirit in order to equip for living as Christians in the World.

Assessing the way in which the Benefice works together to see how St Mary's along with All Saints can be effective in building the Kingdom in a more united way.

Longer term

We will continue to prayerfully reflect on the needs of our community in order to decide on ongoing ministry priorities. At some point a review of our Vision will be undertaken. These may include growing our provision of youth work and adding a baptistery for adult baptism in the Chancel.

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management

The PCC is the legal entity that is responsible for the leadership of the church. It works within the Anglican framework provided by Salisbury Diocese. The PCC is made up of the Team Rector, Team Vicar, Church Wardens, Assistant Curate and other elected lay members of the church, each heading up a department or sphere of church life.

The Annual Meeting of Parishioners and Annual Parochial Church Meeting (for church members) give a natural place for any issue to be openly discussed, and gives the legal framework for the election of Church Wardens and lay members who serve on the PCC.

The PCC meets monthly to oversee different activities and, where possible, discerns those whom God is calling to serve in the various "heads of department" roles such as mission, children's work, outreach, finance, fabric and the Beacon Project etc. Having been elected at the Annual Meetings (see above) they then have a duty to report back to the PCC and keep it informed as to how they manage the responsibilities, including budgets, delegated to them. With regard to finances, the PCC decides on the salaries of their employees, and also on the charges for letting out our premises. As a PCC our decision-making is fairly unusual in so far as changes are only made where unanimity is reached at the meetings.

Day to day management of the Church takes place through a variety of means, but especially through the ministries of its appointed leaders: the Team Rector, Team Vicar, Assistant Curate (when one is in place), Church Wardens, Operations Manager, Church Secretary, Children's and Families Pastor, Worship and Youth Pastor and Treasurer. We have a Café Manager overseeing the work of the Beacon Café.

The Trustees of the Charity are identical to the members of the Parochial Church Council (PCC). There are presently 15 positions on the PCC, including Rector, Associate Minister, two Church Wardens, Treasurer, Secretary, and 'heads of department' for various spheres of Christian Ministry in the Church.

The trustees who served during the year and up to the date of signature of the financial statements were: Rev. S Pix

D Howshall M Orman Rev P Chabala R Jobbins D White A Scouse (Resigned 27 May 2021) G Tyler (Resigned 27 May 2021) M Belbin (Resigned 27 May 2021) R Broadley S Deall (Resigned 27 May 2021) RA Loader Mrs K Scarfe O Chappell A Thornton (Appointed 27 May 2021) Mrs Diane French (Appointed 29 May 2022) Mrs Sarah Collins (Appointed 29 May 2022) Mr Alan Field (Appointed 18 September 2021) Mr Michael Raven (Appointed 27 July 2021)

FERNDOWN PAROCHIAL CHURCH COUNCIL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Rev Oliver Fricker (Appointed 27 June 2021) Mrs Vera Waters (Appointed 27 May 2021) Mr Ryan Baldwin (Appointed 27 May 2021) Mr Barry Robertson (Appointed 27 May 2021) Mrs Tracey Nicholls (Appointed 28 June 2021)

Individuals with particular gifts and passions are approached and asked to consider standing, but then elections are held at the APCM, where others could stand against them. The appointed trustees are deemed to possess the appropriate abilities and experience required. From 2017 all Trustees will be DBS checked, and the recently agreed Safer Recruitment process will be used in recruitment of new Trustees. All trustees are considered to be highly experienced and skilled individuals. Training is provided where necessary.

Key management personnel

T A Nicholls - Administration P Craddock - Cafe manager.

The trustees' report was approved by the Board of Trustees.

..............................

Rev P Chabala

Trustee Dated: .........................

FERNDOWN PAROCHIAL CHURCH COUNCIL

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF FERNDOWN PAROCHIAL CHURCH COUNCIL

I report to the trustees on my examination of the financial statements of Ferndown Parochial Church Council (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

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

Independent examiner's statement

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 Association of Chartered Certified Accountants (ACCA), which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

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

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

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

James Paget

TC Group 10 Bridge Street Christchurch Dorset BH23 1EF

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

FERNDOWN PAROCHIAL CHURCH COUNCIL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donatons and legacies
3
274,253
500
12,687
Charitable actvites
4
101,621
-
-
Investments
5
-
-
-
Other income
6
12,459
-
-
Total income
388,333
500
12,687
Expenditure on:
Charitable actvites
7
380,621
28,833
3,768
Net incoming resources before
transfers
7,712
(28,333)
8,919
Gross transfers between funds
(24,079)
26,919
(2,840)
Net (expenditure)/income for the year/
Net movement in funds
(16,367)
(1,414)
6,079
Fund balances at 1 January 2021
85,777
46,788
16,890
Fund balances at 31 December 2021
69,410
45,374
22,969		 Total
2021
£
287,440
101,621
-
12,459
401,520
413,222
(11,702)
-
(11,702)
149,455
137,753		 Total
2020
£
381,166
64,480
1
22,633
468,280
367,757
100,523
-
100,523
48,933
149,456

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

All income and expenditure derive from continuing activities.

FERNDOWN PAROCHIAL CHURCH COUNCIL

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilites
Income funds
Restricted funds
16
Unrestricted funds - designated
17
Unrestricted funds - general		 2021
£
1,538
12,280
133,133
146,951
(15,131)		 £
5,933
131,820
137,753
22,969
45,374
69,410
137,753		 2020
£
1,081
6,928
155,818
163,827
(14,371)		 £
-
149,456
149,456
16,890
46,789
85,777
149,456

The financial statements were approved by the Trustees on .........................

.............................. .............................. Rev P Chabala Mr Barry Robertson Trustee Trustee

FOR THE YEAR ENDED 31 DECEMBER 2021

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting policies

Charity information

St Mary's is the local 'Church of England' church in Ferndown, Dorset, led and managed by the Parochial Church Council (PCC), the unincorporated registered UK charity, which in turn is chaired by the incumbent of the church, Rev Sarah Pix. The PCC is the legal entity that is responsible for the leadership of the church. It works within the Anglican framework provided by Salisbury Diocese.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) and the Church Accounting Regulations 2006. The charity is a Public Benefit Entity as defined by FRS 102.

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

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.4 Incoming resources

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

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

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. Donated fixed assets are recorded at fair value. The time of volunteers is not recognised.

Income from grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

VAT is charged on Cafe sales and food provided for venue hire and income derived from this is shown net of VAT.

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. VAT is claimable on vatable Cafe related expenditures.

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, repairs and maintenance costs, finance etc which supports the charity's activities. All support costs are deemed to relate to the charitable activity of the charity, any costs related to other income methods are deemed to be immaterial.

Governance costs are those support costs incurred to meet the statutory and constitutional requirements of the charity.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Other Fixtures, Fitngs & Ofce Equipment

Equipment used within the church premises is recorded at cost and depreciated on a straight-line basis over 4 years, apart from the digital organ which is depreciated over 10 years. Individual items of equipment with a purchase price of £5,000 or less are written off when the asset is acquired.

Freehold land is not depreciated.

Dedicated (not consecrated) land and buildings and movable church furnishings

No value is placed on moveable church furnishings held since the PCC considers this to be inalienable property. All expenditure incurred during the year on consecrated or benefice buildings and moveable church furnishings, whether maintenance or improvement is written off as expenditure in the SOFA and separately disclosed.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

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 recognised in the charity's 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 recognised 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.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments 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.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2021
2021
2021
£
£
£
Donatons and gifs
270,253
500
12,687
Employment allowance
4,000
-
-
274,253
500
12,687
For the year ended 31 December 2020
367,952
-
13,214		 Total
2021
£
283,440
4,000
287,440		 Total
2020
£
381,166
-
381,166
381,166

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

3
Donatons and legacies
Donatons and gifs
Envelope scheme
Gif aid recoverable
General church collectons
Regular giving
Harvest collectons
Other donatons
Christmas service collectons
Other		 1,715
42,063
6,411
189,113
-
30,951
-
-
270,253		 -
-
-
-
-
500
-
-
500		 -
-
-
9,500
2,217
-
970
-
12,687		 (Contnued)
1,715
9,430
42,063
41,723
6,411
7,048
198,613
171,697
2,217
907
31,451
122,504
970
395
-
27,462
283,440
381,166		 (Contnued)
1,715
9,430
42,063
41,723
6,411
7,048
198,613
171,697
2,217
907
31,451
122,504
970
395
-
27,462
283,440
381,166
381,166

There were no donated goods or services during the year.

4 Charitable activities

Charitable Charitable Actvites
Actvites
2021 2020
£ £
Cafe sales 88,336 40,539
Fees & bookstall sales 95 2,465
Room hire 13,079 10,753
Other income - Open Doors, Men's group, Lighthouse club & events 111 10,723
101,621 64,480
Analysis by fund
Unrestricted funds - general 101,621 64,265
Unrestricted funds - designated - 215
For the year ended 31 December 2020
Unrestricted funds - general 64,265
Unrestricted funds - designated 215
64,480

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

5 Investments

Unrestricted
funds
general
2021
£
Interest receivable
-
Other income
Unrestricted
funds
general
2021
£
Covid-19 Job Retenton scheme grants
12,459		 Total
2020
£
1
Total
2020
£
22,633

6 Other income

Total 2020 £ 91,434 1,645 139,998 2,913 8,282 15,756 862 1,778 419 152 10,391 187 3,270 277,087 31,391 56,679 2,600 367,757
Total 2021 £ 90,468 1,978 183,368 5,292 7,866 22,527 - 6,540 108 60 1,686 105 3,399 323,397 27,423 59,762 2,640 413,222
Other 2021 £ - 1,978 456 1,689 396 - - 651 108 60 1,686 105 3,399 10,528 - - - 10,528
Cafe 2021 £ 28,459 - 28,539 - 414 1,902 - - - - - - - 59,314 - - - 59,314
Church & grounds 2021 £ 18,856 - 13,771 2,175 5,123 17,447 - 5,889 - - - - - 63,261 - - - 63,261
Children & youth work 2021 £ 11,548 - 550 348 841 3,178 - - - - - - - 16,465 - - - 16,465
Ministry 2021 £ 31,605 - 140,052 1,080 1,092 - - - - - - - - 173,829 27,423 59,762 2,640 263,654
Staf costs Depreciaton and impairment Diocesan share/Children's expenses/Upkeep/Cost of sales/Bookstall Rector's/Youth/Refurbishment/-/Catering expenses Assoc' minister/Outreach/Grounds/Maintenance/Advert expenses Training/Beacon running/Pastoral expenses Sound & vision Worship sound desk/-/Advertsing Marriage prep Men's group Other events Lighthouse club Sundry Grant funding of actvites (see note 8) Share of support costs (see note 9) Share of governance costs (see note 9)
(Contnued) Total 2020 £ 331,392 27,188 9,177 367,757 331,392 27,188 9,177 367,757
Total 2021 £ 380,621 28,833 3,768 413,222
Other 2021 £ 10,468 60 - 10,528 18,018 152 - 18,170
Cafe 2021 £ 59,314 - - 59,314 50,513 - - 50,513
Church & grounds 2021 £ 57,318 2,175 3,768 63,261 37,808 1,625 3,248 42,681
Children & youth work 2021 £ 16,465 - - 16,465 20,242 - - 20,242
Ministry 2021 £ 237,056 26,598 - 263,654 204,811 25,411 5,929 236,151
Charitable actvites Analysis by fund Unrestricted funds - general Unrestricted funds - designated Restricted funds For the year ended 31 December 2020 Unrestricted funds - general Unrestricted funds - designated Restricted funds
Ministry 2020 £ 21,690 3,721 56 5,924 31,391
Ministry 2021 £ 25,675 923 825 - 27,423
Grants payable Grants to insttutons (7 grants): Missionary commitee - tthe Missionary donatons Charites and Church Societes Charites and Church Societes -
8

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

9 Support costs

Staf costs
Accountancy - independent examinaton
General ofce expenses
Analysed between
Charitable actvites		 Support
costs
Governance
costs
£
£
52,320
-
-
2,640
7,442
-
59,762
2,640
59,762
2,640		 2021
£
52,320
2,640
7,442
62,402
62,402		 2020
£
50,243
2,600
6,436
59,279
59,279

10 Trustees

A Scouse, trustee, was paid £1,759 (2020: £6,272) gross salary for her role as childrens worker. R Baldwin was paid £7,566 and £219 employer pension for his role as childrens worker.

M Orman, trustee, was paid £29,670 (2020: £29,377) gross salary and £937 (2020: £926) employer pension for his role as Pastor.

Trustees' expenses

Expenses of £5,540 were refunded to 5 trustees (2020: £2,703 to 4 trustees) in the year, for travel, stationery, books, repairs, equipment and other general expenses incurred on church related activities in the year.

11 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries		 2021
Number
6
2021
£
142,788		 2020
Number
6
2020
£
141,677

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

12
Tangible fxed assets
Cost
At 1 January 2021
Additons
At 31 December 2021
Depreciaton and impairment
At 1 January 2021
Depreciaton charged in the year
At 31 December 2021
Carrying amount
At 31 December 2021
13
Stocks
Finished goods and goods for resale
14
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income		 2021
£
1,538
2021
£
11,111
1,169
12,280		 £
37,186
7,911
45,097
37,186
1,978
39,164
5,933
2020
£
1,081
2020
£
3,761
3,167
6,928

Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid after taking account of any discounts due.

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

15 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other taxaton and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
3,501
2,337
5,793
3,500
15,131		 2020
£
6,971
944
2,956
3,500
14,371

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2021

£
The Beacon Project
16,203
Choir fund
204
Christmas services fund
447
Harvest fund
10
Collecton fund
26
16,890		 Movement in funds
Incoming
resources
Resources
expended
£
£
9,500
(3,564)
-
(204)
970
-
2,217
-
-
-
12,687
(3,768)		 Transfers
Balance at
31 December 2021
£
£
-
22,139
-
-
(587)
830
(2,227)
-
(26)
-
(2,840)
22,969		 Transfers
Balance at
31 December 2021
£
£
-
22,139
-
-
(587)
830
(2,227)
-
(26)
-
(2,840)
22,969
22,969

FERNDOWN PAROCHIAL CHURCH COUNCIL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

17 Unrestricted funds - designated

These are unrestricted funds which are material to the charity's activities made up as follows:

Movement in funds
Balance at
1 January 2021
Incoming
resources
Resources
expended
£
£
£
Missionary fund
770
-
(26,658)
AV Fund
35,000
-
-
Quinquennial fund
2,000
-
(2,000)
Capital/refurbishment fund
8,120
500
(175)
Men's group
898
-
-
46,788
500
(28,833)
18
Analysis of net assets between funds
Unrestricted
General
Designated
Restricted
2021
2021
2021
£
£
£
Fund balances at 31 December
2021 are represented by:
Tangible assets
5,933
-
-
Current assets/(liabilites)
63,477
45,374
22,969
69,410
45,374
22,969
19
Related party transactons
Transactons with related partes		 Movement in funds Transfers
Balance at
31 December 2021
£
£
27,663
1,775
(4,559)
30,441
175
175
3,640
12,085
-
898
26,919
45,374
Total
Total
2021
2020
£
£
5,933
-
131,820
149,456
137,753
149,456		 Transfers
Balance at
31 December 2021
£
£
27,663
1,775
(4,559)
30,441
175
175
3,640
12,085
-
898
26,919
45,374
Total
Total
2021
2020
£
£
5,933
-
131,820
149,456
137,753
149,456
Incoming
resources
£
-
-
-
500
-
500
45,374
Total
2020
£
-
149,456
149,456

During the year the charity entered into the following transactions with related parties:

Donatons from
2021
£
Enttes
with
control,
joint
control
or
signifcant infuence over the company
21,890
21,890		 trustees
Diocese of Salisbury -
Diocesan Quota
2020
2021
2020
£
£
£
16,940
140,054
111,713
16,940
140,054
111,713		 trustees
Diocese of Salisbury -
Diocesan Quota
2020
2021
2020
£
£
£
16,940
140,054
111,713
16,940
140,054
111,713
111,713