Saint Michael and All Angels Main Road Gidea Park Romford RM2 5EL 

## **Financial Report for the Year Ended 31st December 2021** 

Our sincere thanks go to all staff, volunteers and wardens for organising so well the financial and site management tasks of St Michaels through 2021. 

## Result for the year 

During the year operating receipts amounted to £130k (2020 - £104k) and operating payments were £148k (2020 - £117k). This gave rise for 2021 to a net deficit of £17k (2020 - £13k deficit). 

## Receipts 

The rise in receipts during the year was attributable to the following factors: Church halls fully re-opening, new halls tenants and a generous response from the congregation to the Gift Day. A single gift aid claim was received which was an improvement on the zero figure of 2020. Halls rental receipts, our main income source, were higher by £10k than 2020 due to COVID restrictions ending. The halls rental charges were reviewed and increased in September 2021. 

## Payments 

Operational payments totalling £148k in 2021 were significantly higher than the previous year. Our Parish Share at £76k (includes the shortfall of £21k from 2020) was £21k more than 2020. A Parish Share short payment of £21k also for 2021, not made to conserve cash flow will be settled in the first quarter of 2022. In 2020 church electricity costs were lowered by £5k due to a successful compensation claim made against British Gas via the Energy Ombudsman but in 2021 energy costs returned to more normal levels. Energy renewals in 2021 have increased due to the energy market volatility and this figure may rise substantially in 2022. 

## Reserves policy 

At the end of the year unrestricted funds stood at £45k with much of what was in the deposit account depleted. Restricted funds reduced to £22k due to works to repair the church clock. The figure includes £14k for Church fabric which have to be used for their designated purpose. 

Early optimism of consolidating our finances and achieving an annual net break even position in the forthcoming year have been tempered due to staff changes and a difficult start to 2022 (see ‘Going Concern’ note below). 

ST MICHAEL AND ALL ANGELS, GIDEA PARK 

1 



## Going Concern 

In accordance with the Church of England’s Accountability Guide (section 3 para 3.4), we are obliged to comment on any matters which affect this position. 

As a result of the decision to pay the parish share in full and the lingering impact of COVID on halls rental income and collections, uncertainty exists as to whether St Michaels can continue as a going concern during the next 12 months. In connection with the above, a Declaration of Trust deed or similar document, needs to be located to evidence the Church is the beneficial freehold owner of the property at 109 Carlton road, to facilitate its possible sale. 

As any possible sale of the property at 109 Carlton Road may take a lengthy time and due to ongoing staff changes the immediate priority for the church should be a focus on knowledge transfer and handover and gaining financial control of halls administration and bringing the gift aid claims up to date. Additionally, with little or no savings to fall back on parish share payments must be carefully managed to maintain a steady cashflow. Mainly due to higher energy costs the hall hire charges should also be reviewed annually. 

## Future Developments 

There is always the risk of substantial building repair costs arising from the large St Michael’s Church and Halls site. 

The Elvin court site seems to have opened and the owners may not be complying with the covenants on the land. 

ST MICHAEL AND ALL ANGELS, GIDEA PARK 

2 



## **St Michaels** 

## **Summary of receipts and payment account - Jan-Dec 2021** 

## **As at 31/12/20:** 

|**As at 31/12/20:**||
|---|---|
|Bank Current account|34178|
|Deposit account|50346|
||84524|



## **Receipts** 

|account|Sum of amount £|
|---|---|
|Bright Minds Playgroup|31|
|Church fees|1171|
|Collections - SGADS under £20|2905|
|Collections non SGADS|2379|
|Envelopes|0|
|Gift day|7460|
|Halls|62446|
|Pew Envelopes|0|
|Rent - 109 Carlton - gross|13180|
|Standing Orders|28334|
|Standing Orders not gift aid|7673|
|Sundries|5|
|Tax Rebate|5152|
|Votive Stand|0|
|(blank)||
|Grand Total|130737|



## **Payments** 

|account|Sum of amount £|Sum of amount £|
|---|---|---|
|Bank Charges||258|
|Bibles / Church books||324|
|Children's Worker Expenses||1499|
|Children's Worker Salary, NI & Pensi||15089|
|Chris Garn Expenses||170|
|Christian Aid||315|
|Church / Children's Groups||0|
|Church Insurance||6513|
|Church PPST||1279|
|Church Repairs & Renewal||3241|
|Church sundries inc. window cleani||0|
|Cleaning Materials||475|
|CMS||3600|
|Fees to Diocese||204|
|Flowers||58|
|Gifts||230|
|Hall tests -Fire & PAT & Emergency|L|889|





|Hall Window Cleaning|600|
|---|---|
|Heating & Lighting|6186|
|Hedley & Chadwick Cleaning|2052|
|Insurance Halls|1211|
|Judith Expense|1021|
|Main Hall & Manley Cleaning|2015|
|Major Hall Repairs|3150|
|Management Fees & VAT|1659|
|Minor Repairs & renewals|2354|
|Minor Repairs via Agent|0|
|Music downloads|927|
|Ofce Manager/accounts assistant|12865|
|Parish Share 2020|21487|
|Parish Share 2021|55000|
|Sundries|316|
|Trade Refuse|2630|
|Vicar's Expenses|0|
|Water|583|
|(blank)||
|Grand Total|148200|
|Net receipts/ (-payments)|-17463|
|Interest received|18|
|**As at 31/12/21:**||
|Bank Current account|67081|
|Deposit account|0|
||67081|



Transfers from CCLA to TSB 

|05/12/2021|25000|
|---|---|
|05/20/2021|25365|





unrestricted funds.

## Note: 

This statement does not show the analysis between restricted and 



## **Independent examiner’s report to the PCC of St Michael & All Angels Church, Gidea Park** 

I report on the accounts of the PCC for the year ended 31 December 2021, which are set out in the financial report. 

## **Respective responsibilities of the PCC and the examiner** 

The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an Independent examination is needed. 

It is my responsibility to 

- Examine the accounts under section 145 of the 2011 Act; 

- Follow procedures laid down in the general directions given by the Charity Commissioners section 145(5)(b) of the 2011 Act; and 

- State whether particular matters have come to my attention. 

## **Basis of Independent Examiners Statement.** 

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records.  It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the management committee 



concerning any such matters.  The procedures undertaken do not provide all the evidence that would be required in a full audit, and consequently I do not express an opinion on the accounts. 

## **Independent examiner’s statement** 

In connection with my examination, no matter has come to my attention: 

- (1) which gives me reasonable cause to believe that in any material respect the requirements 

   - to keep accounting records in accordance with s.130 of the 2011 Act; or 

   - to prepare accounts, which accord with these accounting records have not been met; or 

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached, except however, for the following ongoing concern: 

- (3) 

## **ONGOING CONCERN** 

In accordance with the Church of England’s Accounting Guide (section 3 para 3.4) I am obliged to comment on any matters which effect the Church’s current financial position. 

As a result, despite the loss of Hall’s rental income due to the effect of COVID and the regulations thereof, together with rising utility and maintenance costs, the PCC (trustees) decided to honour their commitment to the Diocese and pay in full the Parish share.  As a result, the church ended 2021 with a deficit of £17,000. 

This deficit, together with a deficit of £14,000 from 2019 and £14,000 from 2020 most certainly gives rise for concern as to the financial stability of the church in future years. 

Although I am not authorised to give advice, I do so believe a Damage Limitation Exercise by the PCC (with guidance from those having financial and business acumen) should be undertaken with haste in order to regain the financial stability of St Michael’s and All Angels. 



Mrs Valerie Goodwin, Independent Examiner. 

508 Upper Brentwood Road 

Romford RM2 6JA 

March 2022