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← The Parochial Church Council Of The Ecclesiastical Parish Of St Mary Merton

2023-12-31-accounts

REGISTERED CHARITY NUMBER: 1134108

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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Page
Report of the Trustees 1 to 8
Independent Examiner's Report 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 to 23
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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

The members of the parochial Church Council who are also the trustees of the charity present their report with the financial statements of the charity for the year ended 31 December 2023. 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

St Mary's is a Church of England parish within the Diocese of Southwark, serving a community of some 3,000 households in and around Merton Park, London, SW19. With a history and hospitality that stretches back to 1115, we continue to be at the heart of the local community, worshjpping God, reaching out to the wider world and extend a warm welcome to you all.

St Mary’s primary function is to be a living Church in which God is praised in Christian worship, inspiring people to grow in faith and serve the community and beyond.

The PCC has the following main objectives:

Purpose :

Inspire worship of God and live the teachings of the Gospel. Nurture community and faith through welcome and hospitality.

Values :

Respect and support one another and the needs of the wider world.

Vision :

Building a sustainable inclusive future, empowering every member.

Public benefit

The incumbent and the PCC have considered the Charity Commission's guidance on public benefit, in particular, the specific guidance on charities for the advancement of religion.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

ACHIEVEMENT AND PERFORMANCE Charitable activities

The PCC has maintained its service to the parish across all its usual range of activities.

From the Vicar

I am, as ever, very grateful for all the dedication and commitment seen at St Mary's and notably this year, when we have witnessed an unusually high number of bereavements and significant losses to our church and community, which has occasioned the compassionate heart of the parish, as always, to be very much in evidence and also extended to me following my own family bereavement. Here I acknowledge our collective indebtedness to my colleague Rev'd Judith Bersweden whose ministry is much appreciated and who has shouldered even more than usual this year, including leading the parish during my split sabbatical to Egypt in the spring and to Greece in the autumn, during which life in the parish seamlessly continued very well indeed.

The Annual Meeting in May was the occasion for us to thank Brenda Richards who retired as our SPA ( Southwark Pastoral Auxiliary) after forty-five years of unstinting service to the parish leading our pastoral work and supporting countless families and individuals in their hour of need. While the Bishop of Southwark was with us, he took the opportunity to recognise Brenda's 'diligent and outstanding dedication and service, who has set a shining example for others to follow'. Happily the pastoral team has been augmented with the addition of Kate Charles and Georgina Benton who were formally recognised in a service at St Mary's at the start of 2024.

It was heartening to be able to prepare candidates again for confirmation who were presented to the Bishop of Southwark in the spring and perhaps this is a timely reminder that people of any age, over 11yrs, including mature adults, are eligible to be confirmed and thereby come to share in the communicant life of the church.

As a PCC we have started consideration of admitting children to communion before confirmation, with a view that a decision will be made mid 2024, part of encouraging young children to participate more fully in the sacramental life of the church. During the year, Dese Child, our PCC Secretary for the last twelve years, has understandably decided to retire, (having originally said she would serve for 2 years!) which will take effect after the 2024 Annual Meeting. We owe Dese a huge vote of thanks for her most thorough and diligent time as Secretary, preparing for all meetings and elections as well as dealing with a host of related administration in a way that gave great confidence that such matters were always in competent hands.

What should I/we do? While all the Covid restrictions were behind us, it is still true that, although our electoral roll numbers have been sustained, with new people replacing those who have moved or died, the numbers attending worship in church on a Sunday have not yet returned to pre-covid levels. This is something I hope in 2024 we might all take time to reflect on and take the necessary action to see corrected, as we all place a high priority on regular and frequent worship in church.

As ever, we thank our faithful Sacristan, Anita Simpson for all her sterling work preparing for and enabling the smooth running of all our services.

Following a selection process Tristan Weymes was happily appointed as Director of Music from 1st January and has continued to direct the choir and organists with much skill and good cheer, and overseen a continued and enhanced flourishing both among our two organ scholars and the front row of choristers particularly. We look forward to that excellent work being embedded as the Choir continues to provide such an important and valued feature of our common life. We are also most grateful to Nick Roberts and the Occasional Singers he leads, for all their contributions to our music when the choir is away.

As you can read later in this report, the parish celebrated the Coronation of The King with a fitting special service and social gatherings in various places around the parish. Barbara Moreland sets out later in the report, the development of the Wednesday Film Club which has seen a most welcome four-fold increase in provision. Our thanks to Barbara and her willing team. As you will read, we were very pleased to see the hall refurbishment completed and after serving more years then even he can recall, serving in various roles, we thanked Derek Cox for his decades of commitment and work with the hall, as his formal involvement concluded at the year's end. Hazel Abbott has kindly stepped up as interim chair and we were pleased to see Gwyn Williams join the hall committee as its new treasurer.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

Russell Penny continues admirably as chair of the Building & Works committee and leading on our response to the quinquennial report on the fabric of the church which will exercise the committee during 2024 and 2025, continuing to keep the building in a very good state of repair. Our focus on ECO issues continues with Judith's encouragement and rightful insistence that each committee places ECO matters at the forefront of its mind; while John Combs and his team of volunteers maintain the glebe very well. We shall be encouraging, by leaflets, all who make use of the glebe, to contribute to the glebe fund, helping with the costs involved.

In the spring, our much delayed walking pilgrimage to St Albans Abbey took place in very good weather and much of the planning on this was undertaken by Simon Hillson whom we thank for that fruitful work. Others assisted in the practical tasks involved and the pilgrimage can now be added to our previous destinations of Winchester and Canterbury and who knows where next! We have always found these pilgrimages to be a real tonic to body and soul and our 54 mile walk to St Albans was no exception.

As the treasurer sets out in his report with the accounts, while we have come through the financial setbacks due to covid, our hall being out of action for part of the year for refurbishment and the worst effects of recent high inflation, we have significant financial challenges ahead of us which must be squarely faced. I would like to thank John Stephenson and all the team for their sterling work through the year and to George Bowman whose chairmanship of the finance committee was concluded by the year's end, pending a family move from the area, whose diligence and insight have been invaluable.

My thanks to the continuing Churchwardens, David Reeves and Andrew Mills, together with Annabel Skinner as Deputy Churchwarden, with whom it has been very good to work in partnership and share in the oversight of the parish; and on Advent Sunday we thanked and made a presentation to Lindsey Jones, who has stood down as Deputy Churchwarden after a most effective and welcome stint of four and half years.

May we all, in our response to God who continues to bless us in so many ways, pray and work for peace in the world, currently torn apart by war and strife; and re-invigorate St Mary's with our frequent presence and ready willingness to join together in the service of others, that we might bear loving and joyful witness to our faith in Jesus Christ; our Saviour, risen, ascended and glorified!

Rev'd John Hayward, Vicar

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL REVIEW Treasurer's Report

I present to you the annual accounts for the calendar year 2023 and comment as follows:

Three headlines:

  1. The completion of the work to the Hall, as well as to Laura's flat, which means that we no longer have any reserves earmarked for the Hall

  2. A modest loss on our ordinary activities, which should be considered in the light of the Hall; being closed for part of the summer; and

  3. A modest increase of £10,000 in the value of our investments

1. The work on the Hall

We had just under £20,000 in the Hall Refurbishment Fund at the start of the year, and this was principally used to carry out the significant dampproofing repairs required to Laura's flat. This also took up some of our designated Hall reserve fund, the balance of which (and a little more) was used up by further work to in the form of the resanding of the main floor and stage. Proper financial analyses for the next few years indicate that we can't rely on the Hall as a source of net income over a medium term, taking into account cyclical repairs. Profits for the Hall on an annual basis will, so far as possible, now be put into a designated Hall repairs fund as a sort of sinking fund to meet these requirements.

2. Our ordinary activities

Given the loss of income when the Hall was under its final refurbishment (that said, the Hall income was still £11k up on last year), I think it is not an unacceptable result to have lost only about £13,000 on our ordinary activities this year. Note that this figure includes the last £11,000 of the Patricia Burrows legacy, which was for accountancy reasons included in the statutory examined accounts for 2022.. Our planned giving was level with 2022 ( the Finance Committee is considering a new planned giving drive to bring this up at least by inflation) , and our church collections have similarly come in at a remarkably similar level to last year. I was hugely grateful again for the success of the Winter Fair. Fees for the use of the church increased by a third, and a 33% increase in wedding and funeral fees was also welcome. Our income from magazine advertising dropped by a quarter, perhaps not surprising at a time when potential advertisers are feeling squeezed.

We are able to maintain and slightly increase our donations to Mercy Ships and our local charities. On the various heads of expenditure, these are really self-explanatory. There are three which I would highlight; we have now carried out some of the works to the church required by the quinquennial inspection, and there will be a further £20,000 or so to come, although this may be spread over 2024 and 2025. Secondly, a £2600 bill for repairs to the boiler was unbudgeted and unwelcome. The final horrid figure is the bill for energy, up by nearly £10,000 for the church alone. I am confident that this figure will be lower in 2024 due to the contract which George Bowman negotiated with our new supplier. Never assume that ParishBuying gives best value! That said, they did enable us to get a very useful discount on the new electronic payment machine, CollecTin, which is now in church on Sundays and for other church occasions.

3. Investments and Funds

As always we are enormously indebted to Hubert Child for his wise monitoring of our investments, and this led to a £10,000 increase in the value of our church investments, as well as £3,000 for the Peter Smith Fund.

On the subject of funds, the finance committee has now authorised half of the Patricia Burrows legacy to be put into a new PB Fabric Fund, to be used for the upkeep of the church once the Honeysett Fund, now down to £36,000, is exhausted. I don't think there are any more changes in our funds to mention save that the small Glebe Fund was used in its entirety. I have apportioned the unrealised gains pro rata to the various principal funds

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

What lies ahead?

Notwithstanding the positive points mentioned here, the fact remains that we are 12% smaller as a financial church than we were a year ago, and assuming that we continue with all our activities I expect that to reduce by a further 15% in 2024, this with no allowance for inflation and assuming no significant unbudgeted costs. I point this out so that all members of the parish, not just the PCC, are aware that we face a struggle in the upcoming years to maintain all our activities without a significant increase in income.

Finally, I am as always hugely grateful also to Andrew Mills for his work to maintain our Gift Aid income, to George Bowman first and now to Jo Williams, and all the Finance committee for their support, and above all to Melanie Sharp our accountant for her care, her enthusiasm and above all her patience.

John Stephenson

Treasurer

Summary of financial activities

Summary of financial activities
Deficit - Unrestricted funds
Deficit - Unrestricted designated funds
Deficit - Restricted funds
Deficit for the year (2022 surplus)		 31/12/2023
£
(15,968)
(42,064)
(14,700)
(72,732)		 31/12/2022
£
46,035
45,457
(10,367)
81,155

Reserves

Reserves
31/12/2023 31/12/2022
Unrestricted funds
Unrestricted designated funds
Restricted funds		 £
62,523
303,621
91,770
457,914		 £
78,491
345,685
106,470
530,646

Reserves Policy

The PCC seek to maintain a sufficient level of reserves to support the day to day operations of St Mary's and to meet such contingencies as might reasonably be foreseen.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

St Mary's Merton Parochial Church Council is the working name for The Parochial Church Council of the Ecclesiastical Parish of St Mary Merton.

The Parochial Church Council (the PCC) is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure.

Charity constitution

The PCC is a Charity registered with the Charity Commission (registration number 1134108) and is an unincorporated association governed by the terms of its constitution, as embodied in the Parochial Church Councils (Powers) Measure 1956 as amended and the Church Representation Rules (contained in Schedule 3 to the Synodical Government Measure 1969 as amended).

Recruitment and appointment of new trustees

The method of appointment of PCC members is set out in the Church Representation Rules. All members of the congregation are eligible to be appointed as members of the PCC should they wish to stand for election.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure and decision making

The PCC is ultimately responsible for the conduct and management of the charity, but the majority of day-to-day management decisions are taken by the following members of the PCC, and subsequently ratified by the PCC if appropriate:

The Vicar, Revd. John Hayward Revd. Judith Bersweden, Associate Priest The Churchwardens, David Reeves and Andrew Mills The Hon Treasurer, John Stephenson; and Russell Penny, Chair of Building & Works and deputy Chair of the PCC. The Finance Committee authorises expenditure up to a limit set by the PCC from time to time. The Church Hall and its attendant finances are managed by a Hall Committee which is responsible to the PCC. The PCC delegates responsibility for church music to the Director of Music, Tristan Weymes, who is not a trustee.

Induction and training of new trustees

New members of the PCC are provided with copies of recent accounts and meeting minutes. Significant changes in legislation are brought to the attention of the PCC from a variety of sources including regular mailings from the Diocese of Southwark and the Charity Commission, often through PCC members with delegated responsibilities such as safeguarding, who may also attend relevant training courses offered by the Diocese and others as appropriate.

Key management remuneration

Pay levels of our employees are agreed by the Finance Committee by reference to perceived market levels and increased in January each year, generally in line with inflation. Other contractors who receive honoraria generally receive a similar annual increase.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The PCC aims to strengthen resources and develop skills in order to grow church membership and to serve the community, but its initiatives are inevitably constrained not only by available funds but also by the challenges in getting new and especially younger members of the church body to devote the time to church activities because of the other pressures on their lives, which inevitably leads to the work being done by the same or even slightly reducing group of loyal servants of the church who are themselves aging.

We try to have as much of our income as possible from planned monthly giving, which in turn enables us to maximise gift aid recovery from HMRC. In addition, we now have an electronic payment machine at al services with suggested donations appropriate to the community and the church's need.

The PCC is responsible for the upkeep of a historic Grade 2-listed church building and this brings with it considerable expense, both annually and especially after the five-yearly Report. Specialist stonemasons and other highly skilled craftsmen are often required, with the attendant cost. To be entrusted with the care of St Mary's is a privilege, but one wht is a significant drain on our resources. The PCC has designated funds from legacies to ensure that we have funds to meet this need in the next five years.

As is noted in the Treasurer's report, our utility costs were the biggest financial shock in 2023. A new contract, and the general move downward of energy costs, should mean that we have this under greater control now.

Generally, the PCC policy is to manage normal business risks in line with best practice. The charity has not suffered any material damage due to failures of, or inadequate management of, controls.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2023

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1134108

Principal address

St Mary's Church Vicarage 3 Church Path London SW19 3HJ

Trustees Ex-Officio Members:

Incumbent : Rev. John Hayward (Chair) Rev. Judith Bersweden

Churchwardens: Mr. David Reeves Andrew Mills Deanery Synod Representatives : Neville Squires Dr. Timothy Planche Sue Davies Pippa Jones

Elected Lay Members: Russell Penny (Vice Chair and Chair of Building and Works Sub-Committee) John Stephenson (Treasurer) Hazel Abbott (Electoral Roll Officer) George Bowman (Chair of Finance, Personnel and Administration Sub-Committee) Derek Cox (Chair Hall Sub-Committee) John Combs (Chair Glebe Sub-Committee) Juliette Kyei Barbara Moreland Lynda Wilson Celia Milner Olivia Tripp Joanna Williams

Independent Examiner

Jonathan Askew FCA Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU

Bankers Barclays Bank plc Wimbledon Branch

National Westminster Bank plc Wimbledon Branch

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

Approved by order of the board of trustees on 19 May 2024 and signed on its behalf by:

Rev. John Andrew Hayward - Trustee

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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

Independent examiner's report to the trustees of The Parochial Church Council of the Ecclesiastical Parish of St Mary Merton

I report to the charity trustees on my examination of the accounts of The Parochial Church Council of the Ecclesiastical Parish of St Mary Merton (the Trust) for the year ended 31 December 2023.

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

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:

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

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

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

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

Jonathan Askew FCA

The Institute of Chartered Accountants in England and Wales

Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU

7 June 2024

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Designated
Restricted
fund
funds
funds
Notes
£
£
£
INCOME AND ENDOWMENTS
FROM
Donations and legacies
2
154,055
362
-
Charitable activities
5
Church activities
4,070
-
-
Other fundraising activities
3
74,442
21
2,856
Investment income
4
10,921
-
-
Total
243,488
383
2,856
EXPENDITURE ON
Raising funds
6
6,514
-
-
Charitable activities
7
Church activities
53,987
21,027
866
Missionary and charitable giving
12,860
-
-
Diocesan fund contribution
110,000
-
-
Church hall costs
54,077
31,178
19,753
Church management and
administration
22,018
23
-
Total
259,456
52,228
20,619
Net gains/(losses) on
investments
-
9,781
3,063
NET
INCOME/(EXPENDITURE)
(15,968)
(42,064)
(14,700)
RECONCILIATION OF FUNDS
Total funds brought forward
78,491
345,685
106,470
TOTAL FUNDS CARRIED
FORWARD
62,523
303,621
91,770		 2023
Total
funds
£
154,417
4,070
77,319
10,921
246,727
6,514
75,880
12,860
110,000
105,008
22,041
332,303
12,844
(72,732)
530,646
457,914		 2022
Total
funds
£
402,692
3,059
66,502
9,704
481,957
6,464
67,845
12,687
108,000
155,191
20,410
370,597
(30,205)
81,155
449,491
530,646

The notes form part of these financial statements

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

BALANCE SHEET 31 DECEMBER 2023

Notes
FIXED ASSETS
Investments
14
CURRENT ASSETS
Stocks
15
Debtors
16
Cash at bank
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2023
£
436,794
250
12,059
51,551
63,860
(42,740)
21,120
457,914
457,914
366,144
91,770
457,914		 2022
£
298,952
350
45,582
212,469
258,401
(26,707)
231,694
530,646
530,646
424,176
106,470
530,646

The financial statements were approved by the Board of Trustees and authorised for issue on 19 May 2024 and were signed on its behalf by:

Mr John Matthew Stephenson - Trustee

Rev. John Andrew Hayward - Trustee

The notes form part of these financial statements

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the Church Accounting Regulations 2006 and in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011.

The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.

The financial statements have been prepared in sterling which is the functional currency, and have been rounded to the nearest pound.

The charity is a public benefit entity as defined by FRS 102 and is unincorporated.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Going concern

The financial statements have been prepared on the assumption that the PCC is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves, the financial position, future plans and the expected level of income and expenditure for 12 months from authorising these financial statements.The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

(ii) Legacies are recognised on a case-by-case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date.

(iii) Other trading activities are recognised in the period in which the event takes place.

Expenditure

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.

The Diocesan quota (South London Church Fund) is accounted for when payable.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Other equipment - 20% on cost

Consecrated and benefice property of any kind is excluded from the financial statements by the Charities Act 2011 section 10(2) (a) and (c).

Fixed Asset Investments

Investments are included in the statement of financial position at their fair value. Fair value is defined as quoted prices in active markets for identical assets or liabilities.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds represent the funds of the PCC that are not subject to any restrictions as to their use. Funds designated by the PCC for a particular purpose are also unrestricted.

Restricted funds can only be used for particular restricted purposes. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Details of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS AND LEGACIES

Unrestricted
Restricted
funds
funds
£
£
Gift Aid donations
108,580
-
Tax recoverable
28,533
-
Legacies
1,050
-
Collections and other donations
16,254
-
Hall Refurbishment - Grants & Donations
-
-
154,417
-		 2023
Total
funds
£
108,580
28,533
1,050
16,254
-
154,417		 2022
Total
funds
£
108,139
36,283
191,195
15,204
51,871
402,692

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
3. OTHER FUNDRAISING ACTIVITIES
2023 2022
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
-
Church hall lettings 57,096 57,096 46,067
Summer and Christmas fairs 6,146 - 6,146 7,880
-
Parish magazine (advertising) 5,829 5,829 7,029
Other 5,392 2,856 8,248 5,526
74,463 2,856 77,319 66,502
4. INVESTMENT INCOME
2023 2022
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
Rents received 650 - 650 650
Interest and dividends 10,271 - 10,271 9,054
-
10,921 10,921 9,704
5. INCOME FROM CHARITABLE ACTIVITIES
2023 2022
Activity £ £
Fees for baptisms, weddings
and funerals Church activities 4,070 3,059
6. RAISING FUNDS
Other trading activities
2023 2022
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
-
Parish magazine and guide 6,514 6,514 6,464
----- End of picture text -----

-14-

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
|||||| |---|---|---|---|---| |7.|CHARITABLE ACTIVITIES COSTS| |Grant| |funding of| |activities|Support| |Direct|(see note|costs (see| |Costs|8)|note 9)|Totals| |£|£|£|£| |Church activities|75,880|-|-|75,880| |-|-| |Missionary and charitable giving|12,860|12,860| |Diocesan fund contribution|110,000|-|-|110,000| |Church hall costs|105,008|-|-|105,008| |-| |Church management and administration|19,281|2,760|22,041| |310,169|12,860|2,760|325,789| |8.|GRANTS PAYABLE| |2023|2022| |£|£| |Missionary and charitable giving|12,860|12,687| |The total grants paid to institutions during the year was as follows:| |2023|2022| |£|£| |Mercy Ships|5,650|5,582| |Christian Care|1,030|1,015| |Church Missionary Society|1,030|1,015| |United Society for Propogation of the Gospel|1,030|1,015| |Welcare|1,030|1,015| |Faith in Action|1,030|1,015| |Spires Centre|1,030|1,015| |Physically Handicapped and Able Bodied Club, Merton|1,030|1,015| |12,860|12,687|

----- End of picture text -----

St Mary's supports various missions every year with financial donations, the budget for which is calculated using the tithing principle.

9. SUPPORT COSTS

----- Start of picture text -----
||| |---|---| |Governance| |costs| |£| |Church management and administration|2,760|

----- End of picture text -----

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

9. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Governance costs

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |Church| |management| |and|Total| |administration|activities| |£|£| |Independent examiner fee|2,760|2,520|

----- End of picture text -----

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

11. STAFF COSTS

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |Wages and salaries|35,016|35,501| |Other pension costs|1,408|1,591| |36,424|37,092| |The average monthly number of employees during the year was as follows:| |2023|2022| |Parish Office Secretary|1|1| |Hall Manager|1|1| |Music Director|1|1| |3|3|

----- End of picture text -----

No employees received emoluments in excess of £60,000.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Designated Restricted Total
fund funds funds funds
£ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 152,090 191,250 59,352 402,692
Charitable activities
Church activities 3,059 - - 3,059
Other fundraising activities 65,894 - 608 66,502
Investment income 7,165 6 2,533 9,704
Total 228,208 191,256 62,493 481,957
EXPENDITURE ON
- -
Raising funds 6,464 6,464
Charitable activities
Church activities 46,148 21,097 600 67,845
- -
Missionary and charitable giving 12,687 12,687
Diocesan fund contribution 108,000 - - 108,000
Church hall costs 32,965 - 122,226 155,191
Church management and administration 20,377 - 33 20,410
Total 226,641 21,097 122,859 370,597
-
Net gains/(losses) on investments (25,396) (4,809) (30,205)
NET INCOME/(EXPENDITURE) 1,567 144,763 (65,175) 81,155
Transfers between funds 44,468 (99,276) 54,808 -
Net movement in funds 46,035 45,487 (10,367) 81,155
RECONCILIATION OF FUNDS
Total funds brought forward 32,456 300,198 116,837 449,491
TOTAL FUNDS CARRIED FORWARD 78,491 345,685 106,470 530,646
13. TANGIBLE FIXED ASSETS
Other
equipment
£
COST
At 1 January 2023 and 31 December 2023 13,594
DEPRECIATION
At 1 January 2023 and 31 December 2023 13,594
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -
----- End of picture text -----

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

14. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2023
Additions
Disposals
Revaluations
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022
There were no investment assets outside the UK.
15.
STOCKS
Stocks of guides
16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Tax recoverable
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Missionary and charitable giving
Wedding deposits and receipts in advance
Parish hall creditors, deposits and agency accounts
Accrued expenses		 Listed
investments
£
298,952
132,229
(27,417)
33,030
436,794
436,794
298,952
2023
2022
£
£
250
350
2023
2022
£
£
-
4,804
3,217
14,000
8,842
26,778
12,059
45,582
2023
2022
£
£
19,894
4,404
12,860
12,687
300
1,234
6,926
4,774
2,760
3,608
42,740
26,707

As at the date of the financial statements £5,426 (2022 - £2,973) was payable to third parties in respect of fees and collections received as agent. During the year the total funds received as an agent for fees and collections was £23,353 (2022 £17,200).

-18-

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
Designated
Restricted
fund
funds
funds
£
£
£
Investments
41,403
303,621
91,770
Current assets
63,860
-
-
Current liabilities
(42,740)
-
-
62,523
303,621
91,770		 2023
Total
funds
£
436,794
63,860
(42,740)
457,914		 2022
Total
funds
£
298,952
258,401
(26,707)
530,646

Comparatives for net assets between funds - 31 December 2022

Investments
Current assets
Current liabilities		 Unrestricted
funds
£
63,515
44,854
(29,878)
78,491		 Designated
funds
£
155,055
190,630
-
345,685		 Restricted
funds
£
80,382
22,917
3,171
106,470		 2022
Total funds
£
298,952
258,401
(26,707)
530,646

19. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Honeysett fabric maintenance
Families and young people fund
Hall maintenance fund
Music scholarship fund
Outreach fund
Organ maintenance fund
Glebe Fund
Youth Club Fund
Patricia Burrows Fund
Patricia Burrows Fabric Fund
Restricted funds
Peter Smith fund
Hall 2021-22 Appeal Fund
TOTAL FUNDS		 Net
movement
At 1/1/23
in funds
£
£
78,491
(15,968)
52,730
(16,077)
39,868
(18,082)
11,438
(11,438)
10,992
572
6,767
(530)
33,231
204
582
(582)
941
-
189,136
754
-
3,115
424,176
(58,032)
86,717
5,053
19,753
(19,753)
106,470
(14,700)
530,646
(72,732)		 Transfers
between
At
funds
31/12/23
£
£
-
62,523
-
36,653
-
21,786
-
-
-
11,564
-
6,237
-
33,435
-
-
-
941
(94,000)
95,890
94,000
97,115
-
366,144
-
91,770
-
-
-
91,770
-
457,914

-19-

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

19. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Honeysett fabric maintenance
Families and young people fund
Hall maintenance fund
Music scholarship fund
Outreach fund
Organ maintenance fund
Glebe Fund
Patricia Burrows Fund
Patricia Burrows Fabric Fund
Restricted funds
Peter Smith fund
Hall 2021-22 Appeal Fund
TOTAL FUNDS		 Incoming
Resources
Gains and
Movement
resources
expended
losses
in funds
£
£
£
£
243,488
(259,456)
-
(15,968)
-
(17,252)
1,175
(16,077)
-
(18,782)
700
(18,082)
-
(11,438)
-
(11,438)
352
(150)
370
572
-
(730)
200
(530)
10
(912)
1,106
204
21
(603)
-
(582)
-
(2,361)
3,115
754
-
-
3,115
3,115
243,871
(311,684)
9,781
(58,032)
2,856
(866)
3,063
5,053
-
(19,753)
-
(19,753)
2,856
(20,619)
3,063
(14,700)
246,727
(332,303)
12,844
(72,732)

-20-

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Honeysett fabric maintenance
Honeysett Parish projects
Families and young people fund
Hall maintenance fund
Music scholarship fund
Outreach fund
Kate Disney trust fund
Organ maintenance fund
Glebe Fund
Youth Club Fund
Patricia Burrows Fund
Restricted funds
Peter Smith fund
Hall 2021-22 Appeal Fund
TOTAL FUNDS
Comparative net movement in funds, included in the
Unrestricted funds
General fund
Honeysett fabric maintenance
Honeysett Parish projects
Families and young people fund
Hall maintenance fund
Music scholarship fund
Organ maintenance fund
Glebe Fund
Patricia Burrows Fund
Restricted funds
Peter Smith fund
Hall 2021-22 Appeal Fund
TOTAL FUNDS		 Net
Transfers
movement
between
At
At 1/1/22
in funds
funds
31/12/22
£
£
£
£
32,456
1,567
44,468
78,491
66,652
(8,922)
(5,000)
52,730
50,000
(227)
(49,773)
-
60,888
(21,020)
-
39,868
21,438
(10,000)
-
11,438
10,917
110
(35)
10,992
6,767
-
-
6,767
44,468
-
(44,468)
-
37,627
(4,396)
-
33,231
500
82
-
582
941
-
-
941
-
189,136
-
189,136
332,654
146,330
(54,808)
424,176
89,559
(2,877)
35
86,717
27,278
(62,298)
54,773
19,753
116,837
(65,175)
54,808
106,470
449,491
81,155
-
530,646
above are as follows:
Incoming
Resources
Gains and
Movement
resources
expended
losses
in funds
£
£
£
£
228,208
(226,641)
-
1,567
-
(2,922)
(6,000)
(8,922)
-
(227)
-
(227)
-
(16,020)
(5,000)
(21,020)
-
-
(10,000)
(10,000)
110
-
-
110
-
-
(4,396)
(4,396)
2,010
(1,928)
-
82
189,136
-
-
189,136
419,464
(247,738)
(25,396)
146,330
2,532
(600)
(4,809)
(2,877)
59,961
(122,259)
-
(62,298)
62,493
(122,859)
(4,809)
(65,175)
481,957
(370,597)
(30,205)
81,155

-21-

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

19. MOVEMENT IN FUNDS - continued

Unrestricted Funds

Patricia Burrows Fund - a fund designated for the maintenance of the church.

Honeysett fabric maintenance - a fund for the purpose of the maintenance and repair of the church building.

Honeysett Parish Projects - a fund designated for the 2022 refurbishment of the Hall.

Families and young people funds - a fund for the purpose of funding the Associate Priest and other youth-related projects.

Hall maintenance fund - a fund for the purpose of maintaining the fabric of the hall.

Music scholarship fund - a fund to support the music of the church

Outreach fund - a fund for the purpose of use for social and community events.

Kate Disney fund - a legacy fund at the discretion of the PCC.

Organ maintenance fund - a fund for the purpose to maintain the organ over a 30 year period.

Glebe fund - a fund for the maintenance of the Glebe Field and its trees.

Youth Club fund - a small fund for a youth project to be determined by the PCC.

Restricted Funds

Peter Smith Fund - a legacy received whose capital can not be spent, income to be applied for one or more music scholarships and the general benefit of the music at St Mary's.

Hall Appeal Fund 2021-22 - a fund for the 2022 refurbishment of the Hall.

Fund Transfers

Transfers into restricted funds are to reflect the additional spend above the restricted income from unrestricted funds.

20. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2023.

-22-

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MERTON

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

21. SPECIAL COLLECTIONS

The Church acted as an agent during the year. Collections made directly for the benefit of third parties are not included in the above accounts. These collections were as set out below.

Collections
Ashes Ground Preparation
AEC Ukraine Appeal
Bishops' Lent
Gifts
The Children's Society
Crisis at Christmas
Funeral Collections
Concert Collections
Royal British Legion		 Brought
Forward
£
106
351
-
-
1,830
380
739
-
-
3,406		 Incoming
Resources
£
320
-
482
2,621
1,630
466
1,566
1,124
388
8,597		 Resources
Expended
£
(314)
(327)
(482)
(2,621)
(138)
(380)
(2,314)
(1,124)
(388)
(8,088)		 Carried
Forward
£
112
24
-
-
3,322
466
(9)
-
-
3,915

-23-