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** |General Reserve - Unrestricted
General Legacies - Unrestricted
Hall Repair Fund
General Funds
Childrens Worker Fund
Designated Fund
Palmer (Church Fabric) - Restricted
Helga Johannsen Legacy - Restricted
Childrens Worker Fund
Elvin Legacy - Flowers - Restricted
Restricted funds
Total
**Note 2 Planned Giving**
Envelope Scheme
Standing Orders
**Note 3 Unplanned giving & donations**
Collections
Donations
Gift Day
Fundraising
**Note 4 Other receipts**
Church fees
Bright Minds Playgroup
Charities
Sundries
Tax Rebate
**Note 5 Halls**
Regular Monthly lettings
Car Parking
Church Insurance Advance (due to fre)
**Note 6 109 Carlton Road**
Rental income|**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 1