# **The Parochial Church Council of the Ecclesiastical Parish of Merton Priory**
Registered Charity Number: 1134253
**Diocese of Southwark Merton Deanery**
**Annual Report and Financial Statements**
**31 December 2020**
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report and Financial Statements for the year ended 31 December 2020**
|**CONTENTS**|**CONTENTS**|**Page**|
|---|---|---|
|**Annual Report of the Parochial Church Council (PCC)**|||
|1|Aim and purposes|3|
|2|Objectives and activities|3|
|3|Achievements and performance|4|
|4|Looking to the future|11|
|5|Financial review|12|
|6|Reserves policy|13|
|7|Investment policy|13|
|8|Going concern|13|
|9|Volunteers|14|
|10|Structure, governance and management|14|
|11|Key management personnel|14|
|12|Administrative information|15|
|13|Statement of responsibilities of the PCC|17|
|14|Independent examiner|17|
|**Independent Examiner’s Report to the PCC**||18|
|**Statement of Financial Activities**||19|
|**Balance Sheet**||20|
|**Notes**|**to the Financial Statements**|21|
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
The Parochial Church Council of the Ecclesiastical Parish of Merton Priory (“PCC”) submits its report and the financial statements of the PCC for the year ended 31 December 2020. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2015 (FRS102)) and the Financial Reporting Standard 102.
## **1 Aim and purposes**
Merton Priory Parochial Church Council (PCC) has the responsibility of co-operating with the Team Rector, the Revd Mark Eminson, and the Team Vicar, the Revd Alison Judge, in promoting in the ecclesiastical parish, the whole mission of the Church, pastoral, evangelistic, social and ecumenical.
The PCC is also specifically responsible for the maintenance of the fabric of the three churches of Christ Church, Colliers Wood; Holy Trinity and St Peter, South Wimbledon; St John the Divine, Merton, along with the two separate church halls of Christ Church and St John the Divine.
## **2 Objectives and activities**
The PCC is committed to promoting the Gospel of Jesus Christ according to the doctrines and practices of the Church of England; the PCC seeks by encouraging co-operation between clergy, lay members of our congregation, and the wider community to undertake the whole mission of the church, pastoral, evangelistic, social, and ecumenical. We are guided by our vision statement, agreed in 2011 and reaffirmed in 2018 as part of our Mission Action Planning:
_“In Merton Priory Team Ministry, we aim to be a community:_
_**Faithful** to God_ _**Sharing** with those in need_ _**Caring** for one another_
_We know we don’t always get it right but we seek God’s grace to fulfil his mission.”_
When planning the activities for the year, the Team Rector, Team Vicar and PCC have in mind the Charity Commission’s guidance on public benefit, and especially the guidance to charities for the advancement of religion. In particular we make it possible for people to live out their faith as part of our parish community through:
- Regular worship and prayer open to all: developing knowledge of and trust in God and learning about the Gospel;
- Provision of sacred spaces for personal prayer and contemplation;
- Provision of pastoral care and sacramental ministry for people living within the parish;
- Teaching the Christian faith through sermons, courses, and small groups;
- Preparing people for baptism, first communion and confirmation;
- Leading Collective Worship, assemblies, and classes in church and community schools;
- Provision of activities with a Christian ethos for young people;
- Provision of social and community events and groups which strengthen outreach and fellowship;
- Fostering relationships with other organisations and churches in our parish and borough and cooperating with them in promoting social cohesion and meeting human need;
- Ministering to those who seek marriages and funerals, before, during, and after these events;
- Supporting other charities in the UK and overseas and building active links with these.
To facilitate this work, we maintain the fabric of the three churches and two separate church halls.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
In 2018 we concluded our three-year Mission Action Plan (MAP) for 2015-17 that had been agreed in December 2014. On the basis of the work done at an Away Day, the PCC agreed a new MAP for 2018-20. Below is an outline of the work we planned to undertake during these three years.
## **3 Achievements and performance**
In drawing up our new MAP we were mindful of our Vision Statement quoted above, of the Five Marks of Mission as agreed by the Church of England (see below), and of the need to build on and strengthen existing projects. We have also committed to doing a few things well rather than taking on too much and failing.
## _**The Five Marks of Mission**_
- To proclaim the Good News of the Kingdom
- To teach, baptise and nurture new believers
- To respond to human need by loving service
- To seek to transform unjust structures of society, to challenge violence of every kind and to pursue peace and reconciliation
- To strive to safeguard the integrity of creation and sustain and renew the life of the earth
## _**COVID-19 Pandemic**_
Before we detail the range of work done this past year, it is important to highlight the overriding fact of the coronavirus pandemic. While we are grateful to God that many things have been able to continue and often in innovative ways, we cannot deny the challenge and sadness of missing so many things. A simple look back at the list of ways we seek to help people live out their faith quickly indicates how that has been impaired in a year of extended national lockdown; however, being faithful to God may have been more important than ever.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## _**Faithful to God**_
## _**MAP objectives:**_
- _To help people grow in their Christian Journey; an ongoing programme of Christian nurture_
- _Moving from welcoming to inviting: encouraging people to be more confident in sharing faith_
- _To open up Christ Church as a safe place for prayer, reflection and Christian practice_
- _Outreach and welcome: to become visible and known in our community_
As Christians our first commitment is to God – and all our other vocations find their place within this commitment. Our principal expression of our faithfulness to God is in worship and prayer, the goal and end of all human existence.
Before the pandemic hit, the PCC had a wide range of acts of worship each week, including at least one _Eucharist_ at each of the three churches on Sunday with provision for children, sometimes through _Junior Church_ groups, and sometimes at _All Age worship_ in which children actively participate; regular _Team Sunday evening worship_ based at Holy Trinity provided a quiet and more contemplative environment; the _Early Service_ at Holy Trinity for children under six and their carers; weekday Morning and Evening Prayer and Eucharists; a weekly Monday evening _Finding Sanctuary_ service at St John the Divine; and weekly _meditation group_ at Christ Church linked with the World Community for Christian Meditation.
From late-March 2020 and throughout the first national lockdown, we opted for a Team approach, providing a _weekly Sunday service_ for the three churches and a monthly _Messy Church_ which was pre-recorded and uploaded to a newly-created _Merton Priory Parish YouTube channel._ This was felt to be a workable arrangement in terms of burden on the ministers and their helpers in recording services and without the risks (technical and otherwise) of a livestream. As we emerged from the first lockdown, each church was initially open for periods of private prayer from June, and then from July we resumed public worship; now with a service at each church to allow as many as possible who wished to return to do so safely. We also ensured one of the weekly services was recorded and uploaded to YouTube to enable those still at home to feel connected. The _Early Service_ at Holy Trinity also went online, but unfortunately given the challenges of social distancing for such a large number of very young children, it has remained a digital service throughout 2020, with 50 views on average per service (compared to 65 adults and 60 children attending a physical service).
The November 2020 lockdown heralded a return to pre-recording, although now from the church buildings rather than ministers’ homes in contrast with the first lockdown. During this second lockdown period, we held _Coffee and Chat_ over Zoom each Sunday morning, allowing members of all our churches to enjoy a time of fellowship each week. We returned to our churches near the start of December and while Tier 4 meant that Christmas numbers were low, we were pleased to be able to celebrate the festival: carol services, Christingle and eucharists brought in 221 people. Christ Church recorded a _Community Carol Service_ , some parts filmed ‘on location’ with members of the community taking part. We also participated in a Merton Deanery initiative, _25 Minutes of Comfort and Joy_ , which involved an audio-visual recording of carols and short talks; we used it during some of our times of private prayer, as well as on a dedicated afternoon at St John the Divine in lieu of live carols. Overall, when churches were open, average Sunday attendance was about 92 adults and 9 children; by way of comparison, before the lockdown average attendance was 153 adults and 46 children. The number of YouTube views averaged 40 when churches were open and 120 when they were closed (130 first lockdown; 90 second lockdown).
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## _**Help people grow in the Christian Journey: an ongoing programme of Christian nurture**_
One necessary, but sad consequence of lockdown was a period when there were absolutely no baptisms. It was, therefore, wonderful when we were able to resume them, although given the varying restrictions throughout the year, numbers were down: we welcomed 18 people into the fellowship of the church through baptism. Other casualties of the pandemic were _First Communion_ preparation and _Confirmation_ preparation with neither celebration able to take place this year. However, we were able to find creative ways to nurture people in faith. _Finding Sanctuary_ transferred to Zoom video-conferencing and this way saw an increase in participation, from a pre-lockdown average of 5 attendees to 11 for the digital version. A regular _Bible study/prayer group_ has also met via Zoom, while one _Confirmation group_ has made use of this facility and arguably been able to meet more often given the time saved on travel.
In terms of innovation, we might also add the provision of resources during the first lockdown for people to pray and reflect. Throughout the spring of 2020, various church members provided weekly prayers and a Thought of the Week, as well as contributing to a dedicated “Inspiration and Comfort” section on the Merton Priory Team website; offerings included artwork, photographs and videos as well as text.
We have been conscious this year that families and children have found it hard to engage with provision at church. Christ Church were able to innovate and offer a Christingle service to families, while Holy Trinity compiled a digital Crib Service which was well-received. Junior Church also had a couple of brief spells when it could operate with strict limitation on numbers, which was a start and a foundation for the future.
## _**Sharing with those in need**_
## _**MAP objectives:**_
- _Promote positive change by being fully involved with Merton Citizens_
- _Christ Church is open as a centre of welcome and hospitality for our community_
- _Outreach and welcome for people to use our churches as a community resource_
Our churches exist for all those who live in our parish and any others who can find solace or belonging in them. ‘Those in need’ is not restricted to those in pastoral or material extremity but to every human being’s need for fellowship and love. It is in knowing our need that we discover God’s grace.
Therefore, when lockdown came each church organised a system whereby the clergy and church members were responsible for keeping in phone contact with our more vulnerable members; for conversation and for any practical needs that might arise. We have had about 84 church members looked after in this way. In a few cases, people from beyond the congregation also got in touch with us, which was pleasing. We could also add that the keeping of the church open for private prayer also sometimes proved to be a lifeline of human contact for some otherwise starved of it and suffering with poor mental health.
Our various groups for young children and carers have had to be put on pause, including our Toddler groups, _Colliwobbles_ at Christ Church and _T3 (Trinity, Tots & Toys)_ at Holy Trinity. _Colliwobbles_ continues to flourish in its new setting in Christ Church and has been much missed. _Coffee, Cake, and Chat_ ¸ a social occasion held at Holy Trinity on a Friday once a month, was not well-supported before lockdown, so in its present format has come to a natural end. We again played an active part in the _Merton Nightshelter Project_ in its different iteration this COVID-year. There was a single base at the Lantern Methodist Church in Griffiths Road, Wimbledon, where each guest has their own room. Nevertheless, through our churches, we had 22 volunteers who continued to provide meals or do shifts. Christ Church has continued its link with _Christian CARE Merton_ , a local charity based in Mitcham, that provides practical support to families in need.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
_Merton Citizens_ is part of our MAP. This is a community organising alliance of different organisations that work together to champion positive change and social justice in our neighbourhood. During the pandemic each of the areas for action has continued to pursue its work via Zoom meetings. Members have also participated in a South London COVID-19 Mental Health Prevention Summit with members of South London and Maudsley NHS Foundation Trust keen to engage as many community groups as possible to consider the impact of COVID and lockdown on the mental health of various groups in our communities. The housing group continues to build on its relationships within Merton Council to press for affordable housing. The refugee group is also very active.
We contribute to ministry in the _schools_ of our parish. The PCC appoints six foundation governors at _Holy Trinity School_ and two at _The Priory School_ , and members of our congregations also serve as governors appointed by Southwark Diocesan Board of Education. The Team Rector is ex officio governor of these schools. Visits to church were lost this year at Easter, the Leavers’ service, Schools Sunday and Christmas, but we were able to offer _Holy Trinity_ and _The Priory_ weekly recorded worships during the lockdowns. Once it was possible to enter the schools, _Holy Trinity_ received a weekly live assembly, a different year group at a time and the act of worship recorded for the rest of the school; _The Priory_ had a roughly monthly pair of mornings where each class was in for worship one after the other. We are also in close contact with community schools in our parish; we were able to visit _Pelham School_ for assemblies for the season of Remembering and for Christmas, the first assemblies they had had in the hall in seven or eight months. The Revd Alison Judge continues to work with _Merton Abbey School_ ; although assemblies and visits have had to be discontinued, it was a delight to join the school for their online Christingle Service.
We communicate with those who live in our parish through regular door-to-door leaflets before Christmas and Easter, through our websites and through flyers distributed in schools and other community places. Holy Trinity’s Christmas leaflet was its glossiest version yet, tied in with the Church of England Christmas campaign. This year, Facebook, Twitter, YouTube, the website and e-notices have been effective in communicating news and updates regarding the virus and our response.
2020 was the fifth year of contributing to the diocese through the _Parish Support Fund._ Given the crisis of the virus and the obliteration of hall income and pressures on giving, it has been a heroic effort that the three churches met their commitments in full. During the year we have also given to a number of charities, both through planned donations and special collections (see note 3.2 on page 26).
We know that mutual care and support is the hall-mark of a truly Christian community. In this way we embody God’s love in our life together.
Various groups exist to promote fellowship and learning. _Messy Church_ was held online during the first lockdown but has now been discontinued. A _prayer group_ at Christ Church led by Joy Lyons has continued to hold members of the parish in prayer via a phone network during lockdown and meeting in person at Christ Church on Wednesday afternoons once the church was open. _God in the Pub_ , a monthly discussion of issues of faith and life, has taken on a new lease of life led by Jane Lovesey, especially this year when it became _God in the Home_ , thanks again to Zoom! Our Lent groups commenced to study the Archbishop of Canterbury’s Lent book on the creation, “Saying Yes to Life”, by Ruth Valerio, but sadly disbanded due to the first national lockdown. The _Easter Story Holiday Club_ during Holy Week was yet another activity cancelled because of the virus. There remains an enthusiastic band of _bell ringers_ at Christ Church and St John the Divine. Members of the band met in July to work on a risk assessment and ringing resumed as the churches opened with numbers in the tower limited to allow social distancing. Sadly, with the new regulations that came into force in October we were unable to continue ringing and the bells have been silent since.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
This year there were few occasions for fellowship, but a combined _Shrove Tuesday event_ hosted at Holy Trinity was a good occasion and the sort of thing to return to in the future. The _MP3 Parish Pantomime_ was Puss in Boots with proceeds going to the Wimbledon Food Bank. These have sometimes been occasions for raising money for charity or the parish and have often been chances for those unfamiliar with worship to participate in an accessible way. Holy Trinity _Christmas Fair_ adapted to the times by running a Scavenger Hunt, which drew support from the wider community. The annual Christ Church _Candlelit Market_ was not held this year.
At the start of the year, members of the ministry team continued to visit and lead regular Communion Services in Care Homes in the Parish and take communion at home to those unable to get to worship. At _Queens Court_ , an extra Songs of Praise service was begun. It has been sad that contact with homes has been on hold, although we have maintained regular communication with home managers. We visit the sick at home and in hospital and offer pastoral care to those who have been bereaved. This has been continued by the clergy as far as possible during this past difficult year. During the year the clergy conducted 12 _funerals_ , of which three were held in our churches; amongst those who died during the year were sometime worshippers in our parish: Patrick Brunt, Barbara Fleming, Morris Gibbs, Sylvia Knight, Eleanor Watkins and Gus Williams. We shall miss them. At All Souls’ tide we invited those who are bereaved to a _memorial service_ , which was appreciated by the 42 in attendance and happened just before the November lockdown. That lockdown unfortunately put a stop to some planned services of Thanksgiving and Loss, for which we had prepared publicity and made contacts in the wider community.
Aware that care for one another extends to having proper procedures in place for protecting people, the PCC continues to promote cooperation between Parish Safeguarding Officers (PSO) in implementing our safeguarding action plan (including the recruitment of a new PSO), has considered _Safeguarding_ at PCC meetings, and has complied with the duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016 to have due regard to House of Bishops’ guidance on safeguarding children and vulnerable adults. At our November PCC meeting we had a brief discussion on the final IICSA report regarding child sexual abuse in the Church of England; this is something we want to spend more time on in 2021. Our Health and Safety Officers have worked together to share good practice, draw up action plans for each church to ensure that we are fully compliant with our Health and Safety policy, and reported findings to the PCC. Naturally, they, churchwardens, clergy and others have been very busy in making and updating risk assessments and cleaning schedules to be COVID-compliant and to ensure safe spaces for worship and prayer.
The combined _electoral roll_ for the parish in 2020 was 314 (Christ Church 64, Holy Trinity 216, St John the Divine 34); this number does not include children or the many people with a more fringe relationship with our churches. We also maintain congregational lists of all our contacts, which comply with data protection legislation; we are mindful of the requirements of GDPR (General Data Protection Regulations), which came into force in May 2018.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## _**Personnel**_
The Team Rector, the Revd Mark Eminson, is responsible for Holy Trinity, while the Team Vicar, the Revd Alison Judge, is responsible for Christ Church and St John the Divine. The Revd Belemo Alagoa, Assistant Priest, continues to work three days a week across the team and we were very pleased to have her time with us renewed for a further three years. Nick Mayhew-Smith, Reader, is now a Parish Ordinand, having been recommended for training for ordained ministry. He is training part-time at Ripon College, Cuddesdon, and so is still with us in the Team too. Joy Lyons, SPA (Southwark Pastoral Auxiliary), continues in her work of pastoral care for members of Christ Church and to co-ordinate the Prayer Group; her work is valued greatly. The Revd Canon Duncan Swan, Associate Priest, works for Southwark Diocese as Deaneries Development Advisor (albeit on furlough this year). We heard towards the end of the year that we are to be blessed with a title curate next summer; more on that shortly. We currently have no paid Parish Administrator and are hugely indebted to Kerry Porritt and Ann Roberts for holding the fort.
The DCCs set rates of pay for employees in accordance with the skills and responsibilities of their roles and with the aim of recruiting and retaining high quality staff; we continue to abide by the commitment made in 2014 to pay no one less than the London Living Wage, as set by the Living Wage Foundation, which was £10.75 per hour from the beginning of 2020. The PCC has indicated a wish to become accredited as a Living Wage Employer.
A staff pension scheme with the Church Workers Pension Fund was introduced on 1 January 2015, which was well before the PCC’s workplace pensions staging date of 1 June 2016. It is available to all employees regardless of salary level and the PCC contributes 5% of gross salary provided the employee also contributes a minimum of 5%.
We are very aware that officers and those in licensed or paid roles are only a small part of the ministry of all God’s people and give thanks to God for the many volunteers who contribute to our worship and ministry.
## _**Caring for one another**_
## _**MAP objective:**_
- _Becoming ‘one body in Christ’ through deepening commitment and good communication_
- _Becoming a more inclusive community_
As a Team with three churches each hosting and committed to many activities, and offering many opportunities to our congregations and communities, we realise the challenge of good and clear communications to enable us to make the best use of our resources and to maximise our outreach. Through updating our websites and social media contacts, through work on our internal communications we hope to become more fully ‘one body in Christ’. This has received fresh impetus this year as a result of the pandemic when we started out with a Team task group representing the three churches and have maintained team-wide communications. This is something we hope to build on in the future.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## _**Use of Church Buildings**_
The PCC has responsibility for the three sites where the churches are situated. Each site has had to respond to making our buildings COVID-19 secure and churchwardens and clergy have worked together to produce a risk assessment and cleaning protocols to ensure that our buildings when open are as safe as possible.
**Christ Church** : This consists of a church building and a hall building on the same site but not physically connected. The church building is much used by the local community for concerts and community events and we have greatly missed this contact this year. Flourish Day Nursery is now thoroughly embedded within the community and a delight to have as tenants. They have been affected by the pandemic but have managed to maintain their service and, fortunately, been able to pay their rent accordingly. We continue working as a congregation and DCC to enhance Christ Church as a place of worship and welcome to our community. Times when the church has been open for private prayer have been well attended and we look forward to continuing this.
**Holy Trinity & St Peter:** Within one building, Holy Trinity has a main worship area, clergy vestry, St Peter’s Chapel, committee room, kitchen, church hall, St Cecilia Room; and an area of the church is set aside for quiet prayer. The church is widely used by outside agencies and the DCC has a licence under faculty to allow London Together Korean Church to use the worship area on Sunday afternoons. A quinquennial inspection in December 2016 revealed a number of works that need undertaking. In addition, the DCC has identified four projects – refurbishing the kitchen; creating a downstairs chapel; redecorating the church interior; repairing the stained-glass window in the East end – that it wishes to accomplish in the coming years. Most hirer use was interrupted for the better part of 2020, although in the autumn we did gain several new hirers. While we were closed for hire, some of our space was made available free of charge for Merton Mutual Aid, a new community group set up to assist in the pandemic. In a similar arrangement, another part of the building was used by Care4Calais, collecting goods for asylum-seekers. The diocese granted a faculty for The Polka Theatre, leaseholders of Holy Trinity’s former hall, to create a new entrance at the corner of the church wall, which we supported. Eventually things were in place for a new lease to be signed for Polka Theatre’s use of the garden area (vestries forecourt), which will result in a small income for the church each year. Late in the year, after an accident, it became clear that the decking outside the hall area was unfit for use, so this was speedily sealed off, awaiting attention in the new year.
**St John the Divine** : This comprises a church building and a hall building. These are located on separate sites, the hall being on the other side of the road from the church. The proposed redevelopment of High Path estate, which may incorporate the site of the church hall, continues but we have heard nothing from Clarion Housing Association this year. Due to COVID-19 we have not been able to welcome choirs or new initiatives into St John the Divine and so we look forward to a better year in 2021.
Our churches have not been open to the community as much as we would wish because of concerns about theft and vandalism, but the times of opening for private prayer - always with a couple of volunteers - have meant we have started to redress this. The PCC is keen that the facilities are used by the community as much as possible and therefore allows for the hiring of the buildings by community groups at a reduced or no cost basis. This is also supplemented by hiring to private groups on more commercial terms.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## **4 Looking to the future**
Recalling again the set of bullet points under our “objectives and activities”, 2020 and the pandemic meant that most of them were not possible or severely hindered: the building closed, sacramental life on hold, people separated, income slashed. Against this backdrop, it is amazing how our corporate life and core purpose have been maintained and developed. Equally, perhaps it means we look to the future with more anticipation and delight than ever! At one PCC meeting, members offered this range of hopes for the days beyond lockdown:
- have a full church;
- have a mixture of Zoom and face to face meetings (and fewer meetings!);
- expand our social gatherings;
- remember and value what we have discovered and be mindful of them;
- a party;
- remember to focus on the people and not get bogged down by other mundane things;
- have a big sing song;
- have regular community events in all three churches;
- continue some of the conversations which have been held over the phone and at a distance… that communication can continue;
- a Team Service of thanksgiving and celebration, possibly with special thanks to the NHS and other key workers.
One tangible hope and expectation is the arrival of a title curate in June 2021. We are gratified that the diocese sees us as a good training parish and the advent of a newly-ordained minister should provide occasion for that combination of worship and song, fellowship and celebration. Furthermore, the sight of someone responding to God’s call on their lives will inspire the vocation and mission of the whole people of God.
This will be timely because in some ways it is quite difficult to plan creatively for the future after a year of constantly surviving and adapting. We are conscious, however, that this MAP cycle has come to an end, so we look forward to a period of review and discernment regarding how and where we go next. This will involve a combination of an Away Day, the assistance of a diocesan missioner, a consultation process and will need time and prayer; but start we certainly will!
Notwithstanding this process, we can already see projects underway or on the horizon which God’s providence has in store. In this regard, we will be continuing to focus on our response to the Black Lives Matter movement and working against racial injustice; also, on our plans to become an Eco-Church; then the national Living in Love and Faith process (Christian teaching and learning about identity, sexuality, relationships and marriage).
We imagine we will also continue to embed our close communications and working together as this will free up time, talents and personnel for the key work of mission and service. This is also the case with our financial stewardship. Stewardship campaigns in 2020 enabled us to hold our own, while big savings in some areas of expenditure mean budgets this year look a lot healthier than we would have expected. The generosity and spirit of all our members across the three churches is cause for great thanksgiving and a strong foundation for 2021 and beyond.
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## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## **5 Financial Review**
As with all of our activities, the COVID-19 pandemic affected our finances in a major way during 2020.
Total income for the year decreased by £59,990 (19%) to £249,321 (2019: £309,331) as set out in the accompanying financial statements on pages 21-42. Of this total, £6,657 was restricted income.
Total unrestricted donations and legacies were £174,833 which was a 5% reduction from the previous year’s figure of £183,970. Hearteningly, tax efficient planned giving pretty much held its own and we are grateful to our three congregations for sustaining their regular stewardship commitments despite the upheavals of national lockdowns and church buildings closed to public worship.
During 2020, we also benefited from the balance (£4,652) of a legacy first received in 2018 from Suzette Rumney and the PCC made full use of the government’s Coronavirus Job Retention Scheme (CJRS) to the tune of £4,764, to support salaries of those staff who were put on furlough. Occasional or one-off giving inevitably suffered a downturn while church buildings were closed.
The major reduction in income over the previous year came from church and hall lettings, which raised £57,136 in 2020 compared with £86,995 in 2019, a loss of £29,859 (34%). As lockdown begins to be eased during 2021, we hope that our hirers will return. Flourish Day Nursery, which rents the church hall at Christ Church, was able to stay open during the pandemic to serve the children of key workers and vulnerable children, and we are grateful for that. Gift Aid from tax efficient giving totalled £28,091 (2019: £33,160), and income from fundraising events reduced by £3,700, from £10,710 in 2019 to £7,010 in 2020, a reduction of 35%, again largely due to closed buildings.
Although our overall income was down by 19%, likewise total expenditure fell by 21% to £254,809 (2019: £322,627). This was mostly due to staff vacancies for the whole year, the Parish Administrator who worked across the team and a Director of Music at Holy Trinity. With these vacancies, parish staff salaries were £12,866 in 2020, a reduction of £29,736 (70%) over the 2019 total of £42,602. Unrestricted expenditure overall reduced by 18%.
Despite the reduction in income, we were able to meet our pledged contributions to the Diocesan Parish Support Fund of £161,075 in 2020, which is a remarkable achievement. Christ Church has also begun in 2021 to pay the shortfall of £18,000 in its contributions from 2019 over the next three years, at the rate of £500 per month. The Parish Support Fund pays for our parish clergy and other diocesan resources, as well as a contribution to poorer parishes.
The team as a whole happily contributed £14,578 (2019: £25,252) to mission giving and donations. Although this was less than in previous years, largely because of the loss of income the churches received, it is pleasing that these commitments did continue. Holy Trinity transferred its annual charitable tithe for 2020 of £5,900 to a designated fund which will be distributed in 2021.
In summary, the deficit for the parish on unrestricted funds was £9,103, with an overall deficit of £5,488, both before unrealised gains on investments which totalled £1,438. The net movement of funds for 2020 was a deficit of only £4,050, which in a year of a global pandemic is reason to express great thanks.
12
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## **6 Reserves Policy**
The PCC has examined the requirements for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets. Given the nature of Merton Priory Team Ministry’s work and financial uncertainty due to the global pandemic, the PCC decided during 2020 that free reserves should be reduced from six months to three months’ routine general fund expenditure, plus committed future expenditure on other projects, where funds permit. This is held to smooth out fluctuations in cash flow and to meet emergencies. At 31 December 2020, the PCC had net free reserves of £215,447 (2019: £216,666) as outlined below, which meets the total free reserves requirement of £85,742 (2019: £167,963). Further details on capital commitments are shown in Note 10 on page 42.
|
n page 42.|||
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|**Total reserves**|**291,505**|295,555|
|_Less:_restricted funds|**(31,731)**|(32,366)|
|_Less:_endowment funds|**(30,801)**|(29,876)|
|_Less:_unrestricted tangible fixed assets|||
|used in the continuing work of the PCC|**(13,526)**|(16,647)|
||_______|_______|
|**Net free reserves**|**215,447**|216,666|
||_______|_______|
|**Free reserves requirement:**|||
|Three months’ routine expenditure_(2019: six months)_|**62,942**|153,063|
|Anticipated cost of major capital works|**22,800**|14,900|
||_______|_______|
|**Total free reserves requirement**|**85,742**|167,963|
||_______|_______|
## **7 Investment Policy**
Funds not immediately required for working capital are partly placed on short term deposit and partly invested in longer-term investment funds. The PCC currently uses the CCLA Church of England Deposit Fund, Charities Aid Foundation investment funds and M&G Charity Funds. The PCC expects to do some work in the near future on drawing up a formal investment policy.
## **8 Going concern**
Each year it is the PCC’s responsibility to state whether or not the financial statements have been drawn up on a going concern basis (see the accounting policy note on page 21). Going concern is the assumption that an entity, in this case the PCC, has the resources (financial or otherwise) needed to continue operating for the foreseeable future and, in particular, for at least 12 months from the date of approval by the PCC of these financial statements. If the going concern principle did not apply then the accounts would be drawn up on an insolvent basis.
Clearly, as part of this year’s going concern review, the PCC has had to consider the impact of COVID-19. The financial risks to the ministry of the PCC have increased significantly as a result of COVID-19 during the whole of 2020 and also into 2021. We do not yet know the complete direct and indirect economic impact of the virus on our church members, whose giving provides the bulk of our financial support. Although tax efficient planned giving held its own in 2020, there has been significant loss of income from other sources.
13
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
We do know, however, that we could not let the church or halls during the lockdown periods and perhaps well beyond that, and a significant reduction in that source of income has been unavoidable. Our free reserves position, however, is adequate, so we do not currently envisage severe financial distress during 2021 and do not consider that there is going concern risk in the short-term. The PCC is keeping both the short-term and longerterm implications under review,
## **9 Volunteers**
We are grateful to all our churchwardens, upon whose shoulders much has fallen this year: Desmond Davies and Alison Fletcher Rogers (Christ Church), Kerry Porritt and Richard Blades (Holy Trinity), Ann Roberts and Jean Parker (St John the Divine); several of whom are due to stand down at the 2021 Annual Parochial Church Meeting, when they will receive fuller thanks. We are also thankful for the considerable labours of our PCC Treasurer, Liz Holder, and PCC Secretaries, first Jaclyn Lartey, then Jane Savill.
We would like to thank all the volunteers who work so tirelessly on our behalf to make our churches the lively and vibrant communities they are. As well as those in licensed lay roles, we particularly want to mention all those who work behind the scenes and in the more invisible areas of our church life; special mention this year should go to the few stalwarts who have managed our communications (websites, social media and notices).
## **10 Structure, governance and management**
The Parochial Church Council is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure and is a Registered Charity.
The method of appointment of PCC members is set out in the Church Representation Rules. The PCC consists of 18 elected members, six from Christ Church, six from Holy Trinity and six from St John the Divine, plus the team clergy. During the past year the PCC has met six times, since the pandemic began via Zoom.
A range of issues are discussed during PCC meetings, including considering ministry needs, parish communications and planning for key events in the parish, as well as hearing reports from the individual churches and having oversight of the Mission Action Plans for all three churches. The PCC is responsible for appointing foundation governors to the governing body of Holy Trinity and Priory schools and also has authority for finance across the parish.
The PCC Standing Committee, which consists of the Team Rector, Team Vicar, six Churchwardens, Secretary and Treasurer, has met on several occasions. The Assistant Priest has recently also been invited to attend these meetings. This group has set the agenda for the PCC meetings and ensured its smooth running. In addition, the PCC Business Committee – Team Rector, Team Vicar, Treasurer and Secretary – has met to make certain that all aspects of church business are covered.
The PCC complies with diocesan requirements with regard to safeguarding policies and risk assessment. It also complies with statutory requirements with regard to employment, access and health and safety.
## **11 Key management personnel**
Key management personnel are those in charge of directing, controlling, running and operating the charity on a day to day basis. For Merton Priory Team Ministry, these are all the members of the PCC and the three DCCs (District Church Councils).
14
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## **12 Administrative information**
## **Parish details**
Full name of the Charity: The Parochial Church Council of the Ecclesiastical Parish of Merton Priory Registered Charity Number: 1134253 Diocese & Deanery: Southwark Diocese, Merton Deanery Address: Holy Trinity Church, 234 The Broadway, London SW19 1SB Telephone: 020 8542 1388 Website: www.mertonprioryteam.org.uk Parish Clergy: Revd Mark Eminson, Team Rector Revd Alison Judge, Team Vicar Revd Belemo Alagoa, Assistant Priest Revd Canon Duncan Swan, Associate Priest Lay Ministers: Nick Mayhew-Smith, Reader* _(to 31/08/20)_ Joy Lyons, Southwark Pastoral Auxiliary (SPA) _*Nick Mayhew-Smith began ordination training on 1 September 2020, at which point he stood down from his licensed lay minister role as a Reader_ Churchwardens: Desmond Davies & Alison Fletcher Rogers, Christ Church Kerry Porritt & Richard Blades, Holy Trinity & St Peter Ann Roberts & Jean Parker, St John the Divine Principal Bankers: _Merton Priory PCC, Christ Church and Holy Trinity & St Peter:_ CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling ME19 4JQ _St John the Divine:_ NatWest plc, Wimbledon (B) Branch, 16 Wimbledon Hill Road, London SW19 7NN Independent Examiner: John Helm ACA Simply Churches Ltd 17 Heathville Road Crouch End London N19 3AL
15
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## **Parochial Church Council Members from January 2020 to the date this report was signed:**
|**Parish Clergy:**|Revd Mark Eminson, Chair||
|---|---|---|
||Revd Alison Judge||
||Revd Belemo Alagoa||
||Revd Canon Duncan Swan||
|**Churchwardens:**|Desmond Davies|Christ Church|
||Alison Fletcher Rogers|Christ Church|
||Kerry Porritt, Lay Chair|Holy Trinity & St Peter|
||Richard Blades|Holy Trinity & St Peter|
||Ann Roberts|St John the Divine|
||Jean Parker|St John the Divine|
|**Representative on**|Liz Holder_(to 12/06/20)_, PCC Treasurer|Merton Deanery|
|**Diocesan Synod:**|||
|**Representatives on**|Michael Brunt|Christ Church|
|**Deanery Synod:**|Jane Savill, Acting PCC Secretary_(from 15/01/21)_|Christ Church|
||Martin Lyons|Holy Trinity & St Peter|
||_Vacancy_|Holy Trinity & St Peter|
||Ann Newson|St John the Divine|
||Eva Parker|St John the Divine|
|**PCC Members:**|Joanne Powell|Christ Church|
||_Vacancy_|Christ Church|
||Andrew Taylor|Holy Trinity & St Peter|
||Daisy Tate_(to 16/06/20)_|Holy Trinity & St Peter|
||_Vacancy_ _(from 16/06/20)_|Holy Trinity & St Peter|
||_Vacancy_|St John the Divine|
||_Vacancy_|St John the Divine|
||Jaclyn Lartey, PCC Secretary_(to 15/01/21)_|Co-opted|
||Liz Holder_(from 01/07/20)_, PCC Treasurer|Co-opted|
16
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Annual Report of the PCC for the year ended 31 December 2020**
## **13 Statement of responsibilities of the Parochial Church Council**
Law applicable to Parochial Church Councils in England & Wales requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the PCC and of its incoming resources and application of resources for that period. In preparing the financial statements, the PCC is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the PCC will continue in operation for the foreseeable future; and
- observe the methods and principles in the Charities SORP (FRS 102).
## **14 Independent Examiner**
The PCC has elected to have an independent examination rather than an audit of the financial statements. The role of Independent Examiner is a personal appointment and this has been carried out by John Helm. Mr Helm has indicated his willingness to continue in this role and accordingly a resolution will be submitted to the forthcoming Annual Parochial Church Meeting to re-appoint him as the PCC’s Independent Examiner for 2021.
Approved by the PCC on 6 May 2021 and signed on its behalf:
**The Revd Mark Eminson PCC Chair**
17
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Independent Examiner’s Report to the members of the Parochial Church Council**
I report on the accounts for the year ended 31 December 2020 which are set out on pages 19 to 42.
## **Respective Responsibilities of the Trustees and Independent 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 the 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 this Report**
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 PCC 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 audit opinion on the accounts.
## **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 church 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.
**John Helm ACA** Simply Churches Ltd 17 Heathville Road Crouch End London N19 3AL
Dated: 10 May 2021
18
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Statement of Financial Activities for the year ended 31 December 2020**
|**Note Unrestricted**
**Restricted**
**Endowment**
**TOTAL**
**Unrestricted**
**Restricted**
**Endowment**
**Funds**
**Funds**
**Funds**
**2020**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
**INCOME & ENDOWMENTS FROM:**
Donations and legacies
2.1
174,833
6,211
-
**181,044**
183,970
22,289
-
Raising funds
2.2
7,010
-
-
**7,010**
10,063
647
-
Investment income
2.3
2,162
446
-
**2,608**
1,821
465
-
Church activities
2.4
58,659
-
-
**58,659**
90,056
-
-
______________
______________
______________
______________
______________
______________
______________
**TOTAL**
242,664
6,657
-
**249,321**
285,910
23,401
-
______
______
______
______
______
______
______
**EXPENDITURE ON:**
Church activities
3.1
239,144
171
-
**239,315**
283,192
12,004
-
Mission giving & donations
3.2
11,707
2,871
-
**14,578**
21,158
4,094
-
Costs of raising funds
3.3
916
-
-
**916**
1,776
403
-
______
______
______
______
______
______
______
**TOTAL**
251,767
3,042
-
**254,809**
306,126
16,501
-
______
______
______
______
______
______
______
**NET (EXPENDITURE)/INCOME**
(9,103)
3,615
-
**(5,488)**
(20,216)
6,900
-
Net gains/(losses) on investments
5.2
513
-
925
**1,438**
835
-
2,111
Transfers between funds
8
4,250
(4,250)
-
**-**
-
-
-
**_______**
**______**
**_______**
**______**
**_______**
**______**
**______**
**NET MOVEMENT IN FUNDS**
(4,340)
(635)
925
**(4,050)**
(19,381)
6,900
2,111
**Reconciliation of funds:**
Totals funds brought forward 1 January 2020
233,313
32,366
29,876
**295,555**
252,694
25,466
27,765
______
______
______
______
______
______
______
**TOTAL FUNDS CARRIED FORWARD**
**31 DECEMBER 2020**
228,973
31,731
30,801
**291,505**
233,313
32,366
29,876
|**Total**
**2019**
**£**
206,259
10,710
2,286
90,056
______________
309,311
|
|---|---|
||______
295,196
25,252
2,179
______
322,627
|
||______
(13,316)
2,946
-
**______**
(10,370)
305,925
______
295,555
|
The notes on pages 21-42 form part of these financial statements.
19
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Balance Sheet as at 31 December 2020**
|**Note**
**Unrestricted**
**Restricted**
**Endowment**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**FIXED ASSETS**
Tangible fixed assets
5.1
13,526
-
-
Investments
5.2
42,552
-
14,313
_________________
_________________
_________________
56,078
-
14,313
_______
_______
_______
**CURRENT ASSETS**
Debtors
6
17,136
703
-
Cash at bank and in hand
174,777
31,028
16,488
_________________
_________________
_________________
191,913
31,731
16,488
_______
_______
_______
**CURRENT LIABILITIES**
Creditors: amounts falling
due within one year
7
19,018
-
-
_________________
_________________
_________________
**NET CURRENT ASSETS**
172,895
31,731
16,488
_______
_______
_______
**TOTAL NET ASSETS**
228,973
31,731
30,801
**________**
**________**
**________**
**PARISH FUNDS**
8
Unrestricted Funds:
- PCC General Fund
1,000
-
-
- Designated Funds (general)
113,796
-
-
- Designated Funds (specific)
114,177
-
-
Restricted Funds
-
31,731
-
Endowment Funds
-
-
30,801
**___________________**
**___________________**
**___________________**
**TOTAL PARISH FUNDS**
228,973
31,731
30,801
**________**
**________**
**________**|**Total**
**2020**
**£**
**13,526**
**56,865**
_________________
**70,391**
_______
**17,839**
**222,293**
_________________
**240,132**
_______
**19,018**
_________________
**221,114**
_______
**291,505**
**________**
**1,000**
**113,796**
**114,177**
**31,731**
**30,801**
**___________________**
**291,505**
**________**|**Total**
**2019**
**£**
16,647
55,353
_________________
72,000
_______
19,848
233,805
_________________
253,653
_______
30,098
_________________
223,555
_______
295,555
|
|---|---|---|
|||**________**
1,000
114,714
117,599
32,366
29,876
**___________________**
295,555
**________**|
The financial statements were approved by the PCC and authorised for issue on 6 May 2021 and signed on its behalf by:
**The Revd Mark Eminson Liz Holder FMAAT** PCC Chair PCC Treasurer
The notes on pages 21-42 form part of these financial statements.
20
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **1 ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation or uncertainty in the preparation of the financial statements are as follows:
## **Basis of accounting**
The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting except for investment assets, which are shown at market value.
The Parochial Church Council of Merton Priory was formed in May 2009 from the amalgamation of three separate parishes: Christ Church, Colliers Wood; Holy Trinity & St Peter, South Wimbledon; St John the Divine, Merton. These financial statements incorporate the income and expenditure, assets and liabilities of the combined parish, including comparative figures for the previous year. The finances of the three individual churches are maintained separately and are therefore accounted for as designated funds.
The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members.
The PCC meets the definition of a public benefit entity under FRS 102.
## **Going Concern**
There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis (see also Section 8 of the Annual Report on page 13).
## **Income Recognition**
Voluntary income and donations (including legacies) are accounted for once the PCC has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis. All income is accounted for gross apart from parochial fees for weddings and funerals, which are accounted for net of fees payable to the diocese.
The income from church activities includes rental income from the letting of church and hall premises, which is accounted for when earned. It is shown gross, with any associated costs included in costs of trading.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
21
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **1 ACCOUNTING POLICIES** (continued)
## **Expenditure Recognition**
Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The PCC is not registered for VAT and accordingly expenditure includes VAT where appropriate.
Where applicable, expenditure included in Raising Funds includes amounts incurred in obtaining grants and other donations.
Expenditure on church activities includes those costs incurred to fulfil the PCC’s principal objects, as outlined in the Report of the PCC. These include grants payable and governance costs. Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. The Diocesan Parish Support Fund is accounted for when due. Governance costs comprise all costs involving the public accountability of the PCC and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.
The PCC contributes to employees’ pension plans with the Church Workers’ Pension Fund (see Note 4.3).
Rentals under operating leases are charged as incurred over the term of the lease.
## **Tangible Fixed Assets**
_Consecrated and benefice property_ of any kind is excluded from the financial statements by Section 10(2)(a) and (c) of the Charities Act 2011.
_Moveable church furnishings_ are held by the Team Rector and Churchwardens on special trust for the PCC. They are considered inalienable property and require a faculty for disposal. They are listed in the churches’ inventories, which can be inspected (at any reasonable time). Items are capitalised at cost and depreciated over their useful economic life other than where insufficient cost information is available. Individual items of furnishings with a purchase price of £1,500 or less are written off when the asset is acquired.
_Equipment and Fixtures & Fittings_ and such other functional equipment used on a continuing basis for the work of the PCC is depreciated on a straight-line basis over five years (equipment, currently none held) or ten years (fixtures and fittings). Individual items of equipment and fixtures & fittings with a purchase price of £1,500 or less are written off when the asset is acquired.
## **Fixed Asset Investments**
Investments are valued at market value at 31 December.
## **Debtors**
Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.
## **Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term deposits with a withdrawal notice period of no more than three months.
22
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **1 ACCOUNTING POLICIES** (continued)
## **Creditors**
Creditors are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount.
## **Borrowings**
The PCC currently holds no borrowings.
## **Fund accounting**
The funds held by the charity are either:
_Unrestricted general funds_ that can be used for PCC ordinary purposes. These include funds designated for a particular purpose by the PCC. Apart from the PCC General Fund, all other unrestricted funds are designated to the three individual churches and are therefore reported as designated funds.
_Restricted funds_ represent donations received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund.
The _expendable endowment fund (Holy Trinity & St Peter)_ was established following the receipt of a substantial legacy from a parishioner. The terms of the legacy are such that the capital can either be invested or expended in the furtherance of the church’s ministry in the parish. It has therefore been accounted for as an expendable endowment. Income arising from the invested funds is credited to unrestricted incoming resources.
The _permanent endowment fund (St John the Divine)_ was given for building a new church, completed in 1914, with the income from the remaining endowment capital to be used on the fabric of the existing building.
23
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **2 INCOME & ENDOWMENTS FROM:**
|
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
**2.1**
**Donation and legacies**
Tax efficient planned giving
90,373
-
Other planned giving
21,712
-
Collections at services
4,151
234
All other giving/voluntary income
21,708
5,359
Gift Aid recovered
27,473
618
Legacies received
4,652
-
Grants (recurring & one-off)
4,764
-
_______
_______
174,833
6,211
_______
_______
**2.2**
**Raising funds**
Fundraising events
7,010
-
_______
_______
**2.3**
**Investment income**
Dividends
788
402
Bank interest
916
44
Rent from land
458
-
_______
_______
2,162
446
_______
_______
**2.4**
**Church activities**
Fees for weddings and funerals
1,523
-
Church & hall lettings
57,136
-
Bookstall sales
-
-
_______
_______
58,659
-
_______
_______
**________**
**________**
**TOTAL INCOME**
242,664
6,657
**________**
**________**|**Total**
**2020**
**£**
**90,373**
**21,712**
**4,385**
**27,067**
**28,091**
**4,652**
**4,764**
_______
**181,044**
_______
**7,010**
_______
**1,190**
**960**
**458**
_______
**2,608**
_______
**1,523**
**57,136**
**-**
_______
**58,659**
_______
**________**
**249,321**
**________**|**Total**
**2019**
**£**
91,015
27,827
11,714
42,543
33,160
-
-
_______
206,259
_______
10,710
_______
1,126
1,160
-
_______
2,286
_______
3,051
86,995
10
_______
90,056
_______
|
|---|---|---|
|||**________**
309,311
**________**|
24
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
|**3**|**EXPENDITURE ON:**|||||
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2020**|**2019**|
|||**£**|**£**|**£**|**£**|
|**3.1**|**Church activities**|||||
||_Church activities:_|||||
||Diocesan parish support fund|161,075|-|**161,075**|144,529|
||Salaries of parish staff|12,866|-|**12,866**|42,602|
||Clergy & assistant staff expenses|2,181|-|**2,181**|2,623|
||_Church expenses:_|||||
||Mission & evangelism costs|111|46|**157**|1,105|
||Education|1,109|-|**1,109**|1,978|
||Insurance|10,960|-|**10,960**|11,045|
||Routine maintenance|7,975|125|**8,100**|10,697|
||Parish office costs|3,373|-|**3,373**|5,317|
||Upkeep of services|2,699|-|**2,699**|5,605|
||Upkeep of church gardens|-|-|**-**|960|
||Church cleaning – contractors & supplies|1,184|-|**1,184**|1,885|
||Organ & piano tuning|1,880|-|**1,880**|1,835|
||Depreciation on tangible fixed assets|3,121|-|**3,121**|3,121|
||Church utilities - electricity, gas & water|5,590|-|**5,590**|10,984|
||Other church running expenses|2,537|-|**2,537**|6,930|
||_Costs of trading:_|||||
||Hall insurance|2,051|-|**2,051**|2,015|
||Hall routine maintenance|31|-|**31**|2,114|
||Hall cleaning – contractors & supplies|1,148|-|**1,148**|2,312|
||Hall utilities - electricity, gas & water|8,135|-|**8,135**|6,810|
||Legal fees re Christ Church hall lease|-|-|**-**|4,552|
||_Major capital expenditure:_|||||
||Organ blower repair (CC)|4,284|-|**4,284**|7,476|
||Hall rewiring (CC)|4,254|-|**4,254**|-|
||Hall alarm refit (CC)|2,580|-|**2,580**|-|
||Grand piano refurbishment (HT)|-|-|**-**|11,693|
||Damp proof walls (HT)|-|-|**-**|5,400|
||Roof repairs (HT)|-|-|**-**|1,608|
|||________|_______|________|_______|
||TOTAL CHURCH ACTIVITIES|239,144|171|**239,315**|295,196|
|||**_______**|**______**|**_______**|**_______**|
25
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
|**3**|**EXPENDITURE ON: (continued)**|||||
|---|---|---|---|---|---|
||**Unrestricted**||**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2020**|**2019**|
|||**£**|**£**|**£**|**£**|
|**3.2**|**Mission giving and donations**|||||
||_Church overseas & missionary societies:_|||||
||Joshua Orphan & Community Care, Malawi|2,083|-|**2,083**|3,083|
||Mary’s Meals|-|-|**-**|2,313|
||Tear Fund|-|-|**-**|2,313|
||Care4Calais|-|-|**-**|663|
||_Relief and development agencies:_|||||
||Christian Aid (Lebanon Crisis Appeal)|-|160|**160**|137|
||DEC (Cyclone Idai, East Africa)|-|-|**-**|600|
||_Home mission & church organisations:_|||||
||Wimbledon Food Bank|4,057|547|**4,604**|-|
||Faith in Action – Merton Homelessness Project|2,144|-|**2,144**|3,153|
||Christian CARE Merton|-|1,001|**1,001**|1,536|
||Wimbledon Guild|-|547|**547**|-|
||Merton Night Shelter|-|455|**455**|395|
||Bishop of Southwark’s Lent Appeal|10|161|**171**|1,408|
||Surrey Churches Preservation Trust|-|-|**-**|290|
||Other donations under £100|-|-|**-**|47|
||_Secular charities:_|||||
||South London Refugee Association|2,083|-|**2,083**|3,360|
||Merton Citizens (part of Citizens UK)|1,330|-|**1,330**|1,330|
||Polka Theatre|-|-|**-**|2,312|
||Rethink Mental Illness|-|-|**-**|2,312|
|||________|_______|________|_______|
||TOTAL MISSION GIVING & DONATIONS|11,707|2,871|**14,578**|25,252|
|||**_______**|**______**|**_______**|**_______**|
These figures for Mission Giving & Donations do not include gifts banked directly to charities for Christian Aid Week or cheques sent direct to the Bishop of Southwark’s Lent Appeal. The parish also makes significant contributions in kind, such as the substantial amount of food given each year to the Wimbledon Food Bank.
26
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **3 EXPENDITURE ON: (continued)**
|**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
**3.3**
**Costs of raising funds**
Costs of fundraising events
853
-
Costs of supporting regular giving
63
-
________
_______
TOTAL COSTS OF RAISING FUNDS
916
-
**_______**
**______**
**_______**
**_______**
**TOTAL EXPENDITURE**
251,767
3,042
**_______**
**_______**|**Total**
**2020**
**£**
**853**
**63**
________
**916**
**_______**
**_______**
**254,809**
**_______**|**Total**
**2019**
**£**
1,872
307
_______
2,179
**_______**
|
|---|---|---|
|||**_______**
322,627
**_______**|
## **4.1 STAFF COSTS**
Included within expenditure on church activities (see note 3 above) are the following staff costs:
||**Total**|**Total**|
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|Gross Salaries|**12,704**|41,241|
|Employer National Insurance contributions|**-**|1,379|
|Employment Allowance|**-**|(1,379)|
|Employer Pension contributions|**162**|1,361|
||______|______|
||**12,866**|42,602|
||______|______|
These staff costs exclude the amounts paid to Southwark Diocese for the stipendiary clergy, who are funded through the Parish Support Fund. Employer’s National Insurance is covered by the government’s Employment Allowance. All employed staff are paid at least the London Living Wage. Information on the staff pension scheme is given in Note 4.3.
During the year the churches employed various part-time staff, as follows:
- Holy Trinity: the posts of Parish Administrator and Director of Music were vacant in 2020 (2019: one Parish Administrator and two job-share Directors of Music); the church employed one Bookkeeper (2019: one).
- Christ Church and St John the Divine jointly employed an Organist/Music Leader (2019: one), and each church employed a Cleaner (2019: one each).
27
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **4.2 RELATED PARTIES**
Liz Holder, PCC Treasurer and member of the PCC, was paid £1,200 (2019: £1,200) for accountancy services relating to the preparation of the statutory financial statements. This payment was gift-aided back to the PCC.
Jane Savill, PCC member, is Chair and trustee of Christian CARE Merton, to which the PCC donated £1,001 in 2020 (2019: £1,536).
Alison Judge, PCC member, made an interest-free loan of £6,000 to Christ Church in November 2019. The loan was for cashflow purposes to progress essential work to the Christ Church organ and was repaid in full in 2020.
The expenses of three (2019: four) members of the PCC/DCCs amounting to £426 (2019: £890) in relation to travel, training and retreats were met by the PCC during the year.
Aggregated unrestricted donations from PCC members totalled £14,395 (2019: £15,158).
## **4.3 STAFF PENSIONS**
**Merton Priory PCC** participates in the Pension Builder Scheme section of CWPF (Church Workers Pension Fund) for lay staff. The Scheme is administered by the Church of England Pensions Board (“the Board”), which holds the assets of the schemes separately from those of the Employer and the other participating employers.
The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.
## **Pension Builder Scheme**
The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.
Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending on the investment returns and other factors.
Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA (Statement of Financial Activities) in the year are contributions payable **(2020: £162; 2019: £1,361)** .
28
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2016. A valuation as at 31 December 2019 was underway as at 31 December 2020.
For the Pension Builder Classic section, the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time.
For the Pension Builder 2014 section, the valuation revealed a surplus of £1.8m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, **Merton Priory PCC** could become responsible for paying a share of that employer’s pension liabilities.
## **5 FIXED ASSETS**
## **5.1 Tangible Fixed Assets**
|||**Fixtures**|
|---|---|---|
|||**& Fittings**|
|||**£**|
|Cost|At 1 January 2020|70,369|
||Additions at cost|-|
|||_________|
||**At 31 December 2020**|**70,369**|
|||_________|
|Depreciation|At 1 January 2020|53,722|
||Charge for the year|3,121|
|||_________|
||**At 31 December 2020**|**56,843**|
|||_________|
|**Net Book Value at 31 December 2020**||**13,526**|
|||_________|
|Net Book Value at 31 December 2019||16,647|
|||_________|
## _Moveable Church Furnishings:_
**None of the three churches** hold any moveable church furnishings purchased since 2001 which are capitalised and depreciated over their useful economic life _(see Accounting Policies, page 22)_ .
## _Fixtures & Fittings:_
## **Christ Church**
The church sound system was purchased in 2009 and is now fully depreciated.
## **Holy Trinity**
The grand piano (purchased in 2002), original kitchen improvements (also 2002) and refurbishment of the reception area (2007) are all fully depreciated. The audio-visual system was installed in 2015 and will be depreciated over ten years.
## **St John the Divine**
A lighting control panel was purchased in 2018 and will be depreciated over ten years.
29
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **5.2 Investments**
|**Investments**|||||
|---|---|---|---|---|
||**Unrestricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**2020**|**2019**|
||**£**|**£**|**£**|**£**|
|Market value 1 January 2020|41,965|13,388|**55,353**|52,338|
|Dividends reinvested|74|-|**74**|70|
|Unrealised gains on revaluation|513|925|**1,438**|2,945|
||______|______|______|______|
|**Market value 31 December 2020**|42,552|14,313|**56,865**|55,353|
||______|______|______|______|
|**Market value represented by**|||||
|**investments in:**|||||
|
CBF Investment Fund shares|2,691|14,313|**17,004**|15,832|
|Charibond Charities Fixed Interest|||||
|Common Investment Fund shares|29,861|-|**29,861**|29,521|
|Polka Theatre – interest in the freehold|10,000|-|**10,000**|10,000|
||______|______|______|______|
||42,552|14,313|**56,865**|55,353|
||______|______|______|______|
CBF Investment Fund shares are held by:
## **Christ Church:**
Trust Fund T0169, held by the Diocese of Southwark as custodian trustee, originated from the sale of a passageway in 1951 for £200. Funds are invested in 85.37 CBF Investment Fund shares with the dividend reinvested.
## **St John the Divine:**
Trust Fund T0046 held by the Diocese of Southwark as custodian trustee. The fund was a permanent endowment (capital) for building a new church, completed in 1914, with the remaining capital invested to provide an income restricted to work on the fabric of the building.
Charibond Charities Fixed Interest Common Investment Fund is held by **Holy Trinity** : original purchase price £27,734 for 24,426 units. The current holding is 23,798 units at 31 December 2020. The unit trust invests in government and corporate fixed interest securities.
The Polka Theatre is held by **Holy Trinity** : a nominal figure of the PCC’s interest in the freehold of the Polka Theatre (240 The Broadway, London SW19 1SB) which is subject to a long-term lease. This has not been the subject of an independent valuation.
30
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **6 DEBTORS**
||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2020**|**2019**|
||**£**|**£**|**£**|**£**|
|Gift Aid recoverable|11,321|703|**12,024**|12,759|
|Accrued income|4,045|-|**4,045**|5,252|
|Prepayments and other debtors|1,770|-|**1,770**|1,837|
||______|______|_______|______|
||17,136|703|**17,839**|19,848|
||______|______|_______|______|
## **7 CREDITORS**
## **Amounts falling due within one year:**
||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2020**|**2019**|
||**£**|**£**|**£**|**£**|
|Accruals|5,691|-|**5,691**|9,792|
|Payroll tax creditor|491|-|**491**|1,717|
|Pension creditor|1|-|**1**|236|
|Other creditors and|||||
|income received in advance|12,835|-|**12,835**|12,353|
|Loan from a member of the congregation *|-|-|**-**|6,000|
||_______|________|_______|_______|
||19,018|-|**19,018**|30,098|
||_______|________|_______|_______|
_* An interest-free loan from a member of the congregation was given to Christ Church in 2019. The purpose of the loan was for cashflow purposes to progress essential work to the Christ Church organ and was repaid in full in November 2020._
31
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8 FUND ANALYSIS**
## **8.1a Fund Summary (current year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/20**||||**Losses**|**31/12/20**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Funds**|||||||
|PCC General Fund|1,000|5,372|(5,372)|-|-|**1,000**|
|**Designated Funds (General)***|||||||
|Christ Church|18,742|75,249|(60,947)|4,164|173|**37,381**|
|Holy Trinity|46,230|132,585|(134,204)|(10,552)|340|**34,399**|
|St John the Divine|49,742|29,164|(36,543)|(347)|-|**42,016**|
|**Designated Funds (Specific)***|||||||
|PCC|558|-|-|-|-|**558**|
|Christ Church|3,210|-|(2,580)|86|-|**716**|
|Holy Trinity|111,402|294|(11,774)|10,552|-|**110,474**|
|St John the Divine|2,429|-|(347)|347|-|**2,429**|
||______|______|______|______|_____|_______|
||233,313|242,664|(251,767)|4,250|513|**228,973**|
||______|______|______|______|_____|_______|
|**Restricted Funds**|||||||
|PCC|2,499|-|-|-|-|**2,499**|
|Christ Church|3,923|4,271|(1,046)|(4,250)|-|**2,898**|
|Holy Trinity|15,172|1,899|(1,830)|-|-|**15,241**|
|St John the Divine|10,722|487|(166)|-|-|**11,093**|
||______|______|______|______|_____|_______|
||32,366|6,657|(3,042)|(4,250)|-|**31,731**|
||**______**|**______**|**______**|**_______**|**_____**|**_______**|
|**Endowment Funds**|||||||
|Holy Trinity(expendable)|14,063|-|-|-|-|**14,063**|
|St John the Divine(permanent)|15,813|-|-|-|925|**16,738**|
||______|______|______|______|_____|_______|
||29,876|-|-|-|925|**30,801**|
||______|______|______|______|_____|_______|
||______|______|______|______|_____|_______|
|**TOTAL FUNDS**|295,555|249,321|(254,809)|-|1,438|**291,505**|
||______|______|______|______|_____|_______|
32
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8.1b Fund Summary (prior year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/19**||||**Losses**|**31/12/19**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Funds**|||||||
|PCC General Fund|1,000|3,166|(3,166)|-|-|**1,000**|
|**Designated Funds (General)***|||||||
|Christ Church|5,105|64,421|(50,702)|(460)|378|**18,742**|
|Holy Trinity|40,804|173,996|(186,198)|17,171|457|**46,230**|
|St John the Divine|48,561|43,702|(43,708)|1,187|-|**49,742**|
|**Designated Funds (Specific)***|||||||
|PCC|558|-|-|-|-|**558**|
|Christ Church|2,882|-|(132)|460|-|**3,210**|
|Holy Trinity|149,821|625|(21,873)|(17,171)|-|**111,402**|
|St John the Divine|3,963|-|(347)|(1,187)|-|**2,429**|
||______|______|______|______|_____|_______|
||252,694|285,910|(306,126)|-|835|**233,313**|
||______|______|______|______|_____|_______|
|**Restricted Funds**|||||||
|PCC|2,499|1,084|(1,084)|-|-|**2,499**|
|Christ Church|2,778|2,108|(963)|-|-|**3,923**|
|Holy Trinity|10,132|19,195|(14,155)|-|-|**15,172**|
|St John the Divine|10,057|1,014|(299)|-|-|**10,722**|
||______|______|______|______|_____|_______|
||25,466|23,401|(16,501)|-|-|**32,366**|
||**______**|**______**|**______**|**_______**|**_____**|**_______**|
|**Endowment Funds**|||||||
|Holy Trinity(expendable)|14,063|-|-|-|-|**14,063**|
|St John the Divine(permanent)|13,702|-|-|-|2,111|**15,813**|
||______|______|______|______|_____|_______|
||27,765|-|-|-|2,111|**29,876**|
||______|______|______|______|_____|_______|
||______|______|______|______|_____|_______|
|**TOTAL FUNDS**|305,925|309,311|(322,627)|-|2,946|**295,555**|
||______|______|______|______|_____|_______|
* **Designated (General) Funds** are funds which have been designated by the **PCC** to each **DCC** for unrestricted purposes. **Designated (Specific) Funds** are funds which have been designated by each **DCC** for specific purposes.
33
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8.2 Individual Church Funds**
## **8.2.1a PCC (current year)**
|**PCC (current year)**||||||
|---|---|---|---|---|---|
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Balance**|
||**01/01/20**||||**31/12/20**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Fund**|1,000|5,372|(5,372)|-|**1,000**|
|**Designated Funds (Specific)**||||||
|MP3 Players|558|-|-|-|**558**|
|**Restricted Funds**||||||
|Youth Work|2,499|-|-|-|**2,499**|
||_______|______|_______|______|_______|
||4,057|5,372|(5,372)|-|**4,057**|
||_______|______|_______|______|_______|
|**PCC (prior year)**||||||
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Balance**|
||**01/01/19**||||**31/12/19**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Fund**|1,000|3,166|(3,166)|-|**1,000**|
|**Designated Funds (Specific)**||||||
|MP3 Players|558|-|-|-|**588**|
|**Restricted Funds**||||||
|Youth Work|2,499|-|-|-|**2,499**|
|Mission & Charities:||||||
|- Surrey Churches Preservation Fund|
-|290|(290)|-|**-**|
|- Bishop of Southwark’s Lent Call|-|580|(580)|-|**-**|
|Other Restricted Donations|-|214|(214)|-|**-**|
||_______|______|_______|______|_______|
||4,057|4,250|(4,250)|-|**4,057**|
||_______|______|_______|______|_______|
## **8.2.1b PCC (prior year)**
• _MP3 Players Fund:_ in some years, the parish drama group stages a production where 50% of the surplus is kept by the PCC and 50% designated to help with the costs of future MP3 productions. No such production was held in 2020.
• _Youth Work:_ this was originally the balance held by Morden Baptist Church when the Fusion Youth Group was transferred to the Merton Priory Team. The Fusion Youth Group no longer exists and Morden Baptist Church does not want the funds returned to them. The PCC decided in January 2018 that this fund could be used for any youth work across the three churches.
34
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8.2.2a Christ Church, Colliers Wood (current year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/20**||||**Losses**|**31/12/20**|
||**£**|**£**|**£**|
**£**|**£**|**£**|
|**Designated Fund (General)**|18,742|75,249|(60,947)|
4,164|173|**37,381**|
|**Designated Funds (Specific)**|||||||
|Hall & Church Repairs Fund|3,210|-|(2,580)|
86|-|**716**|
|**Restricted Funds:**|||||||
|Organ Fund|-|4,250|-|
(4,250)|-|**-**|
|Merton Night Shelter|1,816|-|(45)|
-|-|**1,771**|
|Mission & Charities:|||||||
|- Children’s Society|387|21|-|
-|-|**408**|
|- Christian Aid|227|-|-|
-|-|**227**|
|- Christian CARE Merton|1,001|-|(1,001)|
-|-|**-**|
|- Other Charities|10|-|-|
-|-|**10**|
|150thAnniversary Fund|187|-|-|
-|-|**187**|
|Hymn Book Fund|295|-|-|
-|-|**295**|
||_______|______|______|
______|______|_______|
||25,875|79,520|(64,573)|
-|173|**40,995**|
||_______|______|______|
______|______|_______|
## **8.2.2b Christ Church, Colliers Wood (prior year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/19**||||**Losses**|**31/12/19**|
||**£**|**£**|**£**|
**£**|**£**|**£**|
|**Designated Fund (General)**|5,105|64,421|(50,702)|
(460)|378|**18,742**|
|**Designated Funds (Specific)**|||||||
|Hall & Church Repairs Fund|2,882|-|(132)|
460|-|**3,210**|
|**Restricted Funds:**|||||||
|Organ Fund|-|764|(764)|
-|-|**-**|
|150thAnniversary Fund|187|-|-|
-|-|**187**|
|Hymn Book Fund|295|-|-|
-|-|**295**|
|Merton Night Shelter|1,688|250|(122)|
-|-|**1,816**|
|Mission & Charities:|||||||
|- Children’s Society|-|387|-|
-|-|**387**|
|- Christian Aid|5|222|-|
-|-|**227**|
|- Christian Care Merton|526|475|-|
-|-|**1,001**|
|- Other Charities|77|10|(77)|
-|-|**10**|
||_______|______|______|
______|______|_______|
||10,765|66,529|(51,979)|
-|378|**25,875**|
||_______|______|______|
______|______|_______|
35
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
- _Hall & Church Repairs Fund:_ income from the Colliwobbles toddler group which is transferred for the use of hall
- and church repairs at the end of each year.
- _Organ Fund:_ £4,250 (including associated gift aid) was given during 2020 for the repairs to the organ blower that
- took place late in 2019. This amount has been transferred to the general fund to cover costs that were taken from the general fund in the previous year.
- _150[th] Anniversary Fund:_ in 2024, Christ Church will be 150 years old. This fund is to gather the proceeds, from
- appeals and fundraising, to be used for the enhancement of the building and projects within the local community.
- _Hymn Book Fund:_ this was a specific appeal in 2012 for the purchase of new hymn books. Christ Church DCC
- will be reviewing what happens to the remaining balance.
- _Merton Night Shelter:_ Christ Church is one of the locations for the night shelter for the homeless during the
- winter months and this fund represents incoming donations and outgoing expenses. During the pandemic in 2020/21, the night shelter was held at just one location, the Lantern Methodist Church in Wimbledon.
36
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8.2.3a Holy Trinity & St Peter, South Wimbledon (current year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/20**||||**Losses**|**31/12/20**|
||**£**|**£**|**£**|
**£**|**£**|**£**|
|**Designated Fund (General)**|46,230|132,585|(134,204)|
(10,552)|340|**34,399**|
|**Designated Funds (Specific)**|||||||
|Marian Esling Legacy (income)|41,804|294|-|
-|-|**42,098**|
|Annual Tithe|12,500|-|(9,000)|
5,900|-|**9,400**|
|Special Projects Fund|43,227|-|-|
4,652|-|**47,879**|
|Fixed Assets Fund|13,871|-|(2,774)|
-|-|**11,097**|
|**Restricted Funds**|||||||
|Kitchen Refurbishment|10,070|-|-|
-|-|**10,070**|
|Merton Night Shelters|2,565|1,433|(456)|
-|-|**3,542**|
|Mission & Charities:|||||||
|- Bishop of Southwark’s Lent Call|83|37|(120)|
-|-|**-**|
|- Merton Citizens|192|-|-|
-|-|**192**|
|
- Wimbledon Guild|547|-|(547)|
-|-|**-**|
|- Wimbledon Food Bank(Trussell Trust)
547|||(547)|
-|-|**-**|
|Flower Fund|4|-|-|
-|-|**4**|
|Junior Church collections for charity|
1,081|44|-|
-|-|**1,125**|
|Other Restricted Donations|83|385|(160)|
-|-|**308**|
|**Expendable Endowment Fund**|||||||
|Marian Esling Legacy (capital)|14,063|-|-|
-|-|**14,063**|
||_______|______|______|
______|______|_______|
||186,867|134,778|(147,808)|
-|340|**174,177**|
||_______|______|______|
______|______|_______|
37
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8.2.3b Holy Trinity & St Peter, South Wimbledon (prior year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/19**||||**Losses**|**31/12/19**|
||**£**|**£**|**£**|
**£**|**£**|**£**|
|**Designated Fund (General)**|40,804|173,996|(186,198)|
17,171|457|**46,230**|
|**Designated Funds (Specific)**|||||||
|Marian Esling Legacy (income)|71,179|625|-|
(30,000)|-|**41,804**|
|Annual Tithe|18,500|-|(18,499)|
12,499|-|**12,500**|
|Special Projects Fund|42,897|-|-|
330|-|**43,227**|
|Fixed Assets Fund|16,645|-|(2,774)|
-|-|**13,871**|
|Mission & Charities:|||||||
|- Emergency Disasters Fund|600|-|(600)|
-|-|**-**|
|**Restricted Funds**|||||||
|Kitchen Refurbishment|3,506|6,157|(403)|
810|-|**10,070**|
|Merton Night Shelters|2,625|335|(395)|
-|-|**2,565**|
|Mission & Charities:|||||||
|- Bishop of Southwark’s Lent Call|334|415|(666)|
-|-|**83**|
|- South London Refugee Association
277||-|(277)|
-|-|**-**|
|- South London Church Fund|47|-|(47)|
-|-|**-**|
|- Care 4 Calais|664|-|(663)|
(1)|-|**-**|
|- Merton Citizens|105|886|(800)|
1|-|**192**|
|
- Wimbledon Guild|-|547|-|
-|-|**547**|
|- Wimbledon Food Bank(Trussell Trust)
-||547|-|
-|-|**547**|
|Flower Fund|149|569|(714)|
-|-|**4**|
|Junior Church collections for charity|
842|239|-|
-|-|**1,081**|
|Other Restricted Donations|1,583|9,500|(10,190)|
(810)|-|**83**|
|**Expendable Endowment Fund**|||||||
|Marian Esling Legacy (capital)|14,063|-|-|
-|-|**14,063**|
||_______|______|______|
______|______|_______|
||214,820|193,816|(222,226)|
-|457|**186,867**|
||_______|______|______|
______|______|_______|
38
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
- _Legacy Income:_ the remaining interest on the Marian Esling Legacy Fund which is designated for capital projects.
- _Annual Tithe:_ Holy Trinity gives away 5% (2019: 10%) of its unrestricted voluntary income, excluding fundraising
- and investment income, to charitable causes each year. Of the balance at the end of 2019, £3,500 has been earmarked for Christian CARE Merton (£1,750) and Rethink Mental Illness (£1,750). The amount raised in 2020 (£5,900) will be distributed during 2021.
- _Special Projects Fund:_ following a generous legacy and a gift weekend in 2018, the DCC felt it was appropriate to
- put aside some of this money to be used at a later date on special projects around the church that would enhance the building, such as refurbishing the kitchen and relocating the chapel to make it more accessible. The money transferred from the General Fund in 2020 is the final balance of £4,652 received from Suzette Rumney’s original legacy.
- _Fixed Assets Fund:_ the remaining cost of tangible fixed assets, from where they are now depreciated.
- _Kitchen Refurbishment:_ the kitchen was last refurbished in 2002 and is looking very sad. Funds have begun to be
- raised for a new kitchen, which it is hoped will be completed in 2021.
- _Merton Night Shelter:_ Holy Trinity is one of the locations for the night shelter for the homeless during the winter
- months and this fund represents incoming donations and outgoing expenses. During the pandemic in 2020/21, the night shelter was held at just one location, the Lantern Methodist Church in Wimbledon.
- _Junior Church collections_ : regular Sunday collections by the children which are sent to a charity of their choice.
- The DCC is aware that charitable donations have not been made for a few years and will be addressing this during 2021.
- _Other Restricted Donations_ : the balance of £308 represents the remainder of a gift for future development of the
- prayer corner (£83) and a Christmas collection for the Samaritans (£225). During 2020, a further £160 was raised for Christian Aid’s Lebanon Crisis Appeal.
- _Legacy Capital:_ the DCC, in consultation with the congregation in 2007, decided that 55% of the expendable
- endowment Marian Esling Legacy Fund would be given away to charitable organisations over a period of five years, the last year of which was 2013. The remaining 45% of the expendable endowment would be used for urgent capital projects in the church. In 2021, it is anticipated that the balance of £14,063 will be used towards the cost of the kitchen refurbishment that was put on hold during the COVID-19 pandemic in 2020.
39
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8.2.4a St John the Divine, Merton (current year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/20**||||**Losses**|**31/12/20**|
||**£**|**£**|**£**|
**£**|**£**|**£**|
|**Designated Fund (General)**|49,742|29,164|(36,543)|
(347)|-|**42,016**|
|**Designated Funds (Specific)**|||||||
|Fixed Assets Fund|2,429|-|(347)|
347|-|**2,429**|
|**Restricted Funds**|||||||
|Bells Centenary Project|2,929|-|(125)|
-|-|**2,804**|
|Mission & Charities|-|41|(41)|
-|-|**-**|
|Church Maintenance & Repairs:|||||||
|- Mackrell Trust(T0046/income)|7,843|446|-|
-|-|**8,289**|
|**Permanent Endowment Fund**|||||||
|Mackrell Trust(T0046/capital)|15,813|-|-|
-|925|**16,738**|
||______|_____|______|
_____|____|_______|
||78,756|29,651|(37,056)|
-|925|**72,276**|
||______|_____|______|
_____|____|_______|
40
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **8.2.4b St John the Divine, Merton (prior year)**
||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/19**||||**Losses**|**31/12/19**|
||**£**|**£**|**£**|
**£**|**£**|**£**|
|**Designated Fund (General)**|48,561|43,702|(43,708)|
1,187|-|**49,742**|
|**Designated Funds (Specific)**|||||||
|Choir Fund|1,187|-|-|
(1,187)|-|**-**|
|Fixed Assets Fund|2,776|-|(347)|
-|-|**2,429**|
|**Restricted Funds**|||||||
|Bells Centenary Project|2,679|250|-|
-|-|**2,929**|
|Mission & Charities|-|299|(299)|
-|-|**-**|
|Flower Fund|-|||-|-|**-**|
|Church Maintenance & Repairs:|||||||
|- Mackrell Trust(T0046/income)|7,378|465|-|
-|-|**7,843**|
|**Permanent Endowment Fund**|||||||
|Mackrell Trust(T0046/capital)|13,702|-|-|
-|2,111|**15,813**|
||______|_____|______|
_____|____|_______|
||76,283|44,716|(44,354)|
-|2,111|**78,756**|
||______|_____|______|
_____|____|_______|
- _Fixed Assets Fund:_ the remaining cost of tangible fixed assets, from where they are now depreciated.
• _Bells Centenary Project:_ the fund represents donations from an appeal set up to enable the church to engage the community and raise money to install an 8-bell peal in time for the church centenary in 2014. This project was started in 2013 and a 6-bell peal was completed in 2014. A further four bells were installed early in 2018. The balance of £2,804 will be used for ongoing maintenance of the bells.
• _Church Maintenance & Repairs:_ interest income from the Mackrell Trust (permanent endowment) that is restricted for use on the maintenance and repair of the church building. It is anticipated that this will be used for repairs to the vestry roof in 2021.
- _Mission & Charities:_ restricted donations for charities. During 2020, funds were raised for the Bishop of
- Southwark’s Lent Appeal.
• _Mackrell Trust (T0046):_ an ancient permanent endowment for building a new church, held by the Diocese of Southwark as custodian trustee. The capital is not available for use but the interest may be used on the maintenance and repair of the church.
41
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
## **Notes to the Financial Statements for the year ended 31 December 2020**
## **9 OPERATING LEASE COMMITMENTS**
The total future minimum lease payments under non-cancellable operating leases are payable:
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Not later than one year|**288**|863|
|Later than one year and not later than five years|**-**|288|
||_____|_____|
||**288**|1,151|
||_____|_____|
The current printer/photocopier lease expired on 12 April 2021. The PCC has signed a new lease which commits the PCC to total lease payments of £3,528 over five years.
## **10 CAPITAL COMMITMENTS**
The PCC has the following capital commitments, which it expects to complete in the next year:
||**Expected**|Unrestricted|Restricted|Endowment|
|---|---|---|---|---|
||**Cost**|Funds|Funds|Funds|
||**£**|£|£|£|
|**Christ Church**|||||
|Ramp for church porch|**1,000**|1,000|-|-|
|**Holy Trinity**|||||
|Kitchen refurbishment|**35,000**|11,000|10,000|14,000|
|Garden decking|**10,800**|10,800|-|-|
|**St John the Divine**|||||
|No capital works planned for 2021|**-**|-|-|-|
||______|_____|_____|_____|
||**46,800**|22,800|10,000|14,000|
||______|_____|_____|_____|
42
## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY**
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43