2022-12-31-accounts - The Parochial Church Council Of The Ecclesiastical Parish Of St Michael And All Angels, Gidea Park

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

Financial Report for the Year Ending 31[st ] December 2022 End of year position

As at 31/12/22:
Bank Current account	65,625
Deposit account	0
	65,625

Current financial position not healthy.
The 2022 parish share of £38,316 had not been paid by the 31[st] December 2022, and so is shown as a liability in the annual accounts.
The PCC approved the decision to delay the 2022 parish share payment, due to concerns that St Michael’s would become financially unviable.
Parish Share Payments complete for 2021 (totalling £76,748). £21,748 was paid during 2022 for the 2021 parish share.
The first insurance payment of 10,000 for the main hall fire is also included in the end of year balance.
The balance also includes restricted funds - £23,620.

Annual Accounts for 2022

The annual accounts show a deficit of £1,455, but the deficit would have been greater - £39,771, if the parish share for 2022 had been paid.

Annual Accounts
Receipts	£165,621
Payments	£167,076
Difference	-1,455

Going Concern

As a result of the lingering impact of COVID, the remaining parish share payments for 2021 were paid in 2022. However, even if the parish share payments for 2021, had been paid during the 2021 financial year, there would have still been a 2022 financial deficit and the church would not have been able to meet it’s 2022 parish share payments.

As mentioned in the 2021 financial statement, one option to keep St Michael’s financially viable is to release funds by selling or re-mortgaging 109 Carlton Road.

Parochial Church Council of St Michael's Church, Gidea Park Financial Statements for the year ended 31st December 2022

This statement has been prepared in accordance with the Church Accounting regulations 2006

Receipts and Payments Account

Note Total 2022 £ £ £ Receipts Planned Giving 2 29,941 0 29,941 Tax Recovered in 2021 4 11,496 11,496 Unplanned giving & donations 3 15,701 15,701 Other receipts 4 1,297 1,297 Halls 5 94,253 94,253 109 Carlton Road 6 12,933 12,933 Investment income CCLA 0 Total Receipts 165,621 0 165,621 Payments Parish Share 7 60,060 60,060 Church renewals 8 7,441 7,441 Church running costs 9 27,521 27,521 Clergy expenses 10 20,106 20,106 Missions & Charities 11 600 600 Halls running costs 12 44,267 44,267 109 Carlton Rd costs 13 2,398 2,398 Other Payments 14 4,683 4,683 Total Payments 167,076 0 167,076 Receipts less payments (1,455) (1,455) Cash at bank and in hand at 1st January 2022 67,081 23,620 67,081 Cash at bank and in hand at 31st December 2022 65,625 23,620 65,625 Statement of Assets and Liabilities at 31st December 2022 Cash at bank and in hand Bank Current account 65,625 Deposit account 0 23,620 65,625 23,620 Liabilities Parish share - balance remaining 2022 38,316 27,309 23,620 Unrestricted Funds Restricted Funds Unrestricted Fund Restricted Funds	2021 £ 36,007 5,152 12,745 1,207 62,446 13,180 130,737 76,487 3,241 17,526 16,588 3,600 26,442 2,606 1,710 148,200 (17,463) 84,524 67,081 Total 2021 67,081 67,081 21,748 45,333	2020 £ 35,785 2,362 379 52,131 13,044 313
		104,014 55,000 2,592 10,775 18,250 750 27,102 2,606
		117,075
		(13,061) 97,585
		84,524
		2020 34,178 50,346
		84,524 21,487
		63,037

Asset retained for own use
Fixed Asset - 109 Carlton Road	45,400	45,400	45,400	45,400

This asset is retained for church use: freehold house at 109 Carlton Road purchased 1985 (cost £45,400) The property is not regularly revalued but a conservative unofficial valuation of the property in 2022 estimated the value at £500,000

Parochial Church Council of St Michael's Church, Gidea Park Financial Statement for the year ended 31st December 2022

Notes to the Accounts

Note 1 Change in Funds

1 January 2022 33,806 1,262 15,094	Transfer	Interest	(27,521) (7,441) Receipts/ (Payments)	31st Dec 22 6,285 1,262 7,653
50,162				15,200
10,742			(10,742)	0
10,742			(10,742)	0
14,951 4,283 4,386				14,951 4,283 4,386
23,620				23,620

84,524				38,820
190 29,751 29,941 5,466 10,235 15,701 696 571 30 11,496 12,793 74,053 10,200 10,000 94,253 12,933 12,933 Unrestricted Funds	Restricted Funds	Total 2022 190 29,751 29,941 5,466 0 10,235 15,701 696 571 30 11,496 12,793 74,053 10,200 10,000 94,253	Total 2021 0 36,007 36,007 2,905 2,379 7,460 12,745 1,171 31 5 1,207 52,246 10,200 62,446 13,180 13,180	2020 1,273 34,512 35,785 2,362 2,362 283 43 53 379 43,381 8,750 52,131 13,044 13,044

Parochial Church Council of St Michael's Church, Gidea Park Financial Statement for the year ended 31st December 2022

Notes to the Accounts

Note 7 Parish Share 2022 Parish Share for 2021 2022 Parish Share for 2022 Note 8 Church Renewals Repairs & Renewals Note 9 Church running costs Church Insurance Heating and Lighting Organ & Music Sanctuary Church & Childrens Groups Ofce manager/accounts assistant Flowers Sundries & Window Cleaning Fire protection Bank Charges Refreshments Church PPST Bibles / Church books Note 10 Clergy Expenses Vicar's expenses Interregum Costs Curate's Expenses Fees to ofciating ministers Children's Worker Children's Worker Expenses	21,748 38,312 60,060 7,441 7,441 2,819 6,877 945 12,161 542 274 3,725 178 27,521 17,272 2,834 20,106 Unrestricted Funds	Restricted Funds	Total 2022 21,748 38,312 60,060 7,441 7,441 2,819 6,877 945 0 0 12,161 0 0 542 274 0 3,725 178 27,521 17,272 2,834 20,106	Total 2021 76,487 76,487 2,592 2,592 6,513 -6,186 927 0 12,865 58 600 889 258 1,279 324 17,526 0 15,089 1,499 16,588	*2020* 55,000 55,000 2,592


					2,592
					2,838 (1,868) 768 246 6,512 47 500 256 1,449 27
					10,775
					216 16,785 1,249
					18,250

Parochial Church Council of St Michael's Church, Gidea Park Financial Statement for the year ended 31st December 2022

Notes to the Accounts

Unrestricted Restricted Total 2022 Total 2021 2020 Funds Funds

Note 11 Missions & Charities

Essex Clergy CMS Note 12 Halls running costs Utilities - Gas & Electricity Water Minor Repairs Major Repairs Insurance Cleaning Materials Main Hall & Manley Cleaning Hedley & Chadwick Cleaning Hall Window Cleaning Trade refuse Sundries Fire, lighting & PAT tests Note 13 Carlton Road Running Costs Minor Repairs via Agent Management Fees & VAT Insurance	600 600 12,040 1,191 5,844 6,634 5,317 1,102 3,559 2,878 1,000 2,613 1,102 987 44,267 463 1,935 2,398		600 600 12,040 1,191 5,844 6,634 5,317 1,102 3,559 2,878 1,000 2,613 1,102 987 44,267 463 1,935 2,398	3,600 3,600 10,167 583 2,354 3,150 1,211 475 2,015 2,052 600 2,630 316 889 26,442 395 1,596 615 2,606	750
					750
					9,094 813 978 3,734 4,256 805 2,558 2,514 500 772 471 607
					27,102
					395 1,596 615
					2,606

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 2022 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 concerns:

ONGOING CONCERNS

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. Firstly …I believe the date of the APCM was too close to the completion of Year End Accounts, which did not allow for appropriate consideration by the PCC. Consequently, with the final Accounts and report not being dispatched until 5 days prior to the Annual meeting I have not been able to examine them thoroughly.

Secondly...The church’s income has taken a big drop as a result of a fire which rendered the Main Hall unusable for the immediate future. This together with rising utility costs, staff changes, and deficits for the past 3 years leads me to surmise that in 2023 the church will become Insolvent. The PCC must be aware of their own liabilities.

Thirdly … to avoid this, action needs to be taken to either seek to freeze the Parish Share, currently about £78000 until the Church’s financial position can be stabilised, or dispose of their remaining fixed asset at an agreeable market value.

Mrs Valerie Goodwin, Independent Examiner. 20 March 2023 508 Upper Brentwood Road Romford RM2 6JA