# **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 2021** 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Annual Report and Financial Statements for the year ended 31 December 2021** 

|**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|10|
|5|Financial review|11|
|6|Reserves policy|12|
|7|Investment policy|13|
|8|Going concern|13|
|9|Volunteers|13|
|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 2021** 

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 2021.  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, reaffirmed in both 2018 and early 2022 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.” 

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 2021** 

## **3 Achievements and performance** 


This year, notwithstanding the challenges of emerging from various stages of COVD-19 and various levels of lockdown, we were able to work through a process of discernment of vision aided by a Diocesan Mission Enabler, Katharine Von Schubert.  Through a series of meetings with the clergy and PCC, via congregational questionnaires, at an Away Day and two further follow-up meetings, we arrived at the plan shown above.  Its intention is very much for the three churches to unite in mission over the greatest area of need and opportunity, while realising that the whole of our work and mission are much broader.  To this end, we retain reference to the Five Marks of Mission as agreed by the Church of England (see below), which also provide a benchmark by which to measure our work. 

## _**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 

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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 2021** 

## _**Faithful to God**_ 

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. 

The year began with rapidly rising Covid cases, such that, following recommendation from local and regional government, the PCC and DCCs voted overwhelmingly to close for public worship.  This decision was reviewed a couple of times and it was latterly agreed to re-open on Mothering Sunday, 14 March, with the Eucharist at all three churches. 

Congregational numbers across the three churches have taken time to build up.  Certainly, Easter attendance was lower than usual at 91 adults and 14 children at Holy Trinity, 20 adults at St John the Divine and 45 adults at Christ Church; likewise Christmas, as the Omicron variant spread rapidly, with 190 adults and 78 children at Holy Trinity, 35 adults at St John the Divine and 95 adults at Christ Church. 

Average Sunday attendance throughout 2021 was 67 adults and 24 children at Holy Trinity, nine adults at St John the Divine and 41 adults and four children at Christ Church. 

It was good to have an in-person Community Carol Service at Christ Church, with Colliers Wood Chorus and many other friends from the community joining us.  The Early Service at Holy Trinity (for children under six and their carers) left the digital realm and began meeting informally outside in the church garden from late May until October when it returned to church after a hiatus of 18 months or more; numbers attending were often close to pre-pandemic levels at 55 adults and 58 children. 

The more contemplative Team Evening Service resumed in September and now at St John the Divine, fitting in with our MAP priorities.  Attendance has been slow in building up (average attendance of eight), so this will be something to keep under review, although one-off services such as Choral Evensong and Advent Carols had 29 and 51 respectively. 

Weekday Morning and Evening Prayer and Eucharists continued throughout the year, from March onwards.  A weekly Monday evening Finding Sanctuary time of meditation, previously held at St John the Divine, has remained online by popular request; and a weekly meditation group at Christ Church linked with the World Community for Christian Meditation has continued since churches opened up with two new members and an average attendance of eight. 

Private Prayer was maintained in various forms throughout the year, not least offering a lifeline to some when churches were shut for public worship at the beginning of the year. 

A different kind of lifeline for those two months was available with Coffee and Chat over Zoom each Sunday morning, allowing members of all our churches to enjoy a time of fellowship each week.  In terms of digital engagement, the number of YouTube views averaged 30 when churches were open and 70 when they were closed. 

Among our church membership, it was often children and families with whom we lost most contact.  At Holy Trinity, Junior Church operated using separate bubbles through the spring and then it was pleasing to be open to all-comers from the autumn.  For the first time, Holy Trinity staged an acted-out Nativity, thanks to our new curate, Revd Simon Asquith, which involved some 40-50 children.  Christ Church families have been slow to return.  The Annual Crib Service was well attended mostly by local families. 

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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 2021** 

Inevitably, Baptisms were almost off at the start of the year but subsequently there was quite a rush, getting through the COVID-19 backlog!  Across the year, we welcomed 36 people into the fellowship of the church through Baptism.  Unfortunately, First Communion preparation was not feasible again, although is scheduled for May 2022.  Thankfully, five candidates who had had one of the longest periods of Confirmation preparation were able to be confirmed at Southwark Cathedral in November. 

## _**Sharing with those in need**_ 

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. 

For young children and carers, T3 (Trinity, Tots & Toys) at Holy Trinity was re-launched in September 2021, thanks to a new leader stepping forward, and has been well-received by a steady flow of people.  Colliwobbles at Christ Church has been much missed as we look for volunteers to help run it.  The Merton Nightshelter Project did not go ahead this year, following advice from Merton Council and Public Health England.  This prompted Christ Church to support Faith in Action – Merton Homelessness Project, a local charity working with people who have housing problems, as their Christmas Charity this year.  Christ Church has also continued its link with Christian CARE Merton, a local charity based in Mitcham, that provides practical support to families in need. 

We continue our links with Merton Citizens, part of our previous 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. Once it was possible to enter the schools, from March 2021, Holy Trinity and The Priory received weekly live assemblies, a different year group at a time with whole-school worship returning in the autumn, praise be!  Holy Trinity sadly missed their Leavers’ Service for a second year, due to COVID-19, but The Priory were able to attend the church for Leavers’, Harvest and Remembrance services.  We are also in close contact with community schools in our parish; we were able to visit Pelham School on a couple of occasions.  The Revd Alison Judge continues to work with Merton Abbey School and it was great to go into school for an Advent Assembly and sharing the Christmas Story with Nursery and Reception children. 

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 a glossy version again, 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. 

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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 2021** 

2021 was the sixth year of contributing to the diocese through the Parish Support Fund.  Given the crisis of the virus and the reduction in 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 25). 

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.  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, remained in its incarnation of God in the Home, thanks again to Zoom, but returned to its origins at The Sultan Pub in September.  In Lent 2021 we met over Zoom to study “We need to talk about race: understanding the Black experience in white-majority churches” by Ben Lindsay.  This enabled fruitful and frank discussions and, out of a desire to share our experience with a greater number, led to our receiving the Southwark Trinity Icon on loan across our churches in May.  During these services, Lent group participants also shared their learning with the congregations.  As a result of this engagement, several of us were invited to participate in a Black History Month event at Wimbledon Library in October, discussing racism in society and church.  There remains an enthusiastic band of bell ringers at Christ Church and St John the Divine.  They continued to ring once the churches were reopened and a risk assessment had been made.  They are enjoying the added opportunity of ringing before the 6.00pm Evening Service at St John the Divine. 

This year there were few occasions for fellowship, although a nice lunch was held following a Team Service in August to say farewell to the Revd Belemo Alagoa.  There was also a memorable night of poetry when the retired actor Renu Setna performed Matthew Arnold’s “Sohrab and Rustum”, raising funds for Christian CARE Merton.  The MP3 Parish Pantomime had to be on hold this year.  Holy Trinity Christmas Fair returned as an in-person event and was well-attended and raised a good amount of money. 

Holy Trinity hosted two weddings this year, one with a strong pastoral connection and the other a beneficiary of changed plans due to COVID.  This was a novelty, given the previous wedding had been four years earlier! For the record, these were also the first two ceremonies entered into new marriage registers, following the Government’s change in law regarding how marriages are registered (no longer by the church, but through the civil authorities). 

Ministry to Care Homes in the Parish was able to resume: at Queens Court Care Home, both a Songs of Praise and a Communion each month, from May; while South Park Residential Home were able to host us for special Easter and Christmas services.  We visit the sick at home and in hospital and offer pastoral care to those who have been bereaved.  During the year the clergy conducted 10 funerals, of which five were held in our churches; amongst those who died during the year were sometime worshippers in our parish: Tony Dove, Anne Cox, Joan Brock and Girlie Robinson.  We shall miss them.  At All Souls’ tide we invited those who are bereaved to a Memorial service, which was appreciated by the 41 in attendance; also because refreshments could be shared again.  Holy Trinity was pleased to be able to hold a long-awaited Memorial Service for long-time member Barbara Fleming with clergy and congregants past and present, hymn-singing and food and drink. 

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, 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.  This year we recruited a new DBS (Disclosure and Barring Service) Administrator to enable better working together across the Team and we are hopeful we will have one or two new PSOs very soon. 

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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 2021** 

We also preached on the subject of domestic abuse to raise awareness of the terrible plight of women (and occasionally men) in these situations.  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 2021 was 325 (Christ Church 63, Holy Trinity 228, 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. 

## _**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, (as already hinted) left us in August for a new post.  We are incredibly grateful for her generous ministry amongst us over four years and wish her well in her new position responsible for St Paul’s Church, Furzedown.  The Revd Simon Asquith joined us in June, following ordination to the diaconate.  He has settled in very well, both at Holy Trinity and across the Team and we look forward (God-willing) to his ordination to the priesthood in July 2022.  Nick Mayhew-Smith, Parish Ordinand, has suspended his training at Ripon College, Cuddesdon, for a year, to be reviewed later in 2022.  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, has finished work for Southwark Diocese as Deaneries Development Advisor on grounds of ill health, though we are pleased he and his family will be remaining in the parish. 

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 £10.85 per hour from the beginning of 2021.  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**_ 

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 and we hope to build on this shared working 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 2021** 

## _**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 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.  Use of the church building by the local community for concerts and community events has begun to pick up this year.  Flourish Day Nursery is now thoroughly embedded within the community and they continue to be excellent tenants.  We continue working to improve the facilities within the church and had a very constructive meeting with Archdeacon Simon Gates, representatives of the Diocesan Advisory Committee (DAC) and members of the congregations to think through our ideas. 

**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 October 2021 revealed the need for a lot of minor repair and re-decoration work, which mercifully fitted with our plans and expectations.  This means larger projects will need to be on hold for now, such as creating a downstairs chapel and repairing the stained-glass window in the East end.  This year, however, the kitchen refurbishment was undertaken and a new kitchen mostly ready for the Christmas Fair and to be blessed in early 2022, in memory of long-time church member Ann Foster.  New LED lighting has also been put in place, while the decking was replaced with durable recycled plastic, to improve our Eco-Church credentials.  From the spring, hirer use picked up again, close to pre-pandemic levels. 

**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 and we hope soon to have more conversations with Clarion Housing Association in early 2022.  Throughout 2021 Merton Music Foundation, based in Merton Abbey School, have used the church for Saturday practices and rehearsals.  This has enabled them to maintain the level of students by providing a large well-ventilated breakout space from the school.  In December St John the Divine was the venue for the Mayor of Merton, Cllr Michael Brunt, to hold his Christmas Event. 

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 2021** 

## **4 Looking to the future** 

Our principal hope, channelled through this new Mission Action Plan, is to pray for, work for and see growth in the congregation of St John the Divine and in our engagement with the residents and organisations in that part of the parish.  This will be a challenge and will take time, but, coming out of COVID, can be an opportunity to acquaint and re-acquaint ourselves with our neighbours and serve our community. 

As part of the broader mission of the Church, we also hope to deepen our engagement with the Southwark Diocese Anti-Racism Charter, in terms of church membership and leadership, education, raising awareness, challenging injustice, and more (Fourth Mark of Mission). 

Likewise, we intend to enhance our status as an Eco-Church across our Team life, not least following COP-26 in Glasgow (Fifth Mark of Mission). 

As Inclusive Churches, we are also interested to see the outcomes of the national Church of England Living in Love and Faith process (Christian teaching and learning about identity, sexuality, relationships and marriage). Two study groups used the course materials in the autumn and members submitted feedback to the National Church.  On a different aspect of Inclusion, we are looking forward to completing a Prison Awareness Course with a view to becoming Welcoming Churches for former prisoners. 

Finally, it seems pertinent for a second year to recall from a PCC meeting, members’ range of hopes for the days beyond lockdown (since it all went on rather longer than anyone could have imagined!): 

- 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. 

Another year on, many of these aspirations are underway and will indeed be brought together, in partnership and solidarity with many others, under the auspices of Her Majesty the Queen’s Platinum Jubilee celebrations. It will be seen that we have lived, during COVID, through an intense period of history.  Her Majesty’s reign has traversed so much more and, it is to be asserted, provided a focus for continuity, adaptation and unity.  These are all things which point to the One who holds all times, places and persons in His hands and it is to Him that we commend Her Majesty, our Team and its inhabitants, our common life of 2021 and all that awaits in 2022 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 2021** 

## **5 Financial Review** 

As we have found our way through the COVID-19 pandemic, so our finances have begun to recover. 

Total income for the year increased by £42,256 (17%) to £291,577 (2020: £249,321) as set out in the accompanying financial statements on pages 18-39.  Of this total, £13,029 was restricted income. 

Total unrestricted donations and legacies were £183,892 which was a 5% increase from the previous year’s figure of £174,833.  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 2021, Holy Trinity benefited from a generous legacy of £12,000 from the estate of the late Barbara Fleming.  The PCC continued to make full use of the government’s Coronavirus Job Retention Scheme (CJRS) to the tune of £1,707, to support the salaries of those staff who were put on furlough.  Occasional or one-off giving recovered from the previous year as church buildings began to re-open. 

Church and hall lettings also recovered and hirers returned, raising £82,304 in 2021 compared to £57,136 in 2020, an increase of £25,168 (44%).  Gift Aid from tax efficient giving totalled £29,419 (2020: £28,091), while income from fundraising events at £6,607 was largely similar to the previous year. 

Total expenditure increased by 2% to £260,726 (2020: £254,809).  Some of this increase was due to paying housing costs for our new curate, covered by a generous restricted donation.  Depreciation on fixed assets increased by £3,972 due to the installation of a new kitchen at Holy Trinity.  Major capital works undertaken were replacement garden decking at Holy Trinity, a contribution to a new hall boiler at Christ Church, and a splendid external noticeboard, also at Christ Church.  Unrestricted expenditure overall was broadly similar to the previous year. 

We were pleased to be able to meet our pledged contributions to the Diocesan Parish Support Fund of £160,380 in 2021, which includes a contribution of £6,000 towards 2019 arrears from Christ Church.  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 £5,349 (2020: £14,578) to mission giving and donations.  The reduction from 2020 is due to Holy Trinity, for operational reasons, not yet having paid over its 2020 annual charitable tithe of £5,900, which it expects to pay early in 2022.  Holy Trinity also transferred its tithe for 2021 of £6,300 to a designated fund which will likewise be distributed in 2022. 

In summary, the surplus for the parish on unrestricted funds was £28,669, with an overall surplus of £30,851, both before unrealised gains on investments which totalled £1,424.  The net movement of funds for 2021 was a surplus of £32,275, with all three churches turning in a surplus for the year.  A very pleasing outcome all round, especially for a retiring PCC Treasurer! 

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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 2021** 

## **6 Reserves Policy** 

The PCC has examined the requirements for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets (see Note 10 of the Financial Statements).  Given the nature of Merton Priory Team Ministry’s work and financial uncertainty due to the global pandemic, the PCC considers that the free reserves requirement should be held at 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 2021, the PCC had net free reserves of £235,619 (2020: £215,447) as outlined below, which the PCC acknowledges well exceeds the total free reserves requirement of £68,220 (2020: £85,742). 

|<br>0: £85,742).|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|**Total reserves**|323,780|291,505|
|Less: restricted funds|(23,218)|(31,731)|
|Less: endowment funds|(18,796)|(30,801)|
|Less: unrestricted tangible fixed assets|||
|used in the continuing work of the PCC|(46,147)|(13,526)|
||_______|_______|
|**Net free reserves**|235,619|215,447|
||_______|_______|
|**Free reserves requirement:**|||
|Three months’ routine expenditure|62,470|62,942|
|Anticipated cost of major capital works|5,750|22,800|
||_______|_______|
|**Total free reserves requirement**|68,220|85,742|
||_______|_______|



All three churches are planning significant expenditure in 2023 and beyond.  Christ Church is planning major work in the next three years to coincide with their 150 year anniversary celebrations; this may include work around the altar, redecorations of the church, moving the font and putting toilets into the church.  They have already spoken to the DAC (Diocesan Advisory Committee) and are currently looking for an architect. 

Apart from the £5,750 anticipated expenditure on capital commitments in 2022 listed in Note 10 of the Financial Statements, Holy Trinity will be spending a further £3,570 in 2022 on roof repairs, bell repair, repair of the west fence, large boiler repair, fuse boards and hall noticeboards.  None of these items on their own come to over £1,500 so have not been listed separately in the Capital Commitments note of the Financial Statements.  In 2023, the church expects to repair and redecorate the front exterior of the church, costing around £5,200. 

St John the Divine will be spending significant sums on a new heating system either late in 2022 or in 2023, for which they are likely to be applying for grant funding.  They are also looking at upgrading their electrical systems and still have some roof repairs to be completed. 

So although the free reserves position at 31 December 2021 may be looking very healthy, it is clear that all three churches are mindful of their responsibility in thinking ahead to the appropriate use of the PCC’s charitable reserves. 

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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 2021** 

## **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 20).  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 continue to consider the impact of COVID-19.  The financial risks to the ministry of the PCC increased significantly as a result of COVID-19 during 2020-21 and on into 2022.  We do not yet fully know the complete direct and indirect economic impact of the virus on our church members, whose giving provides the bulk of our financial support. 

We do know, however, that we could not let the church or halls during the lockdown periods and well beyond that.  Our free reserves position, however, is adequate, so we do not currently envisage severe financial distress during 2022 and do not consider that there is going concern risk in the short-term. The PCC is keeping both the short-term and longer-term implications under review, 

## **9 Volunteers** 

We are grateful to all our churchwardens, upon whom much falls as ever: Desmond Davies and Alison Fletcher Rogers (Christ Church) and Richard Blades and John Eades (Holy Trinity).  We particularly thank Jean Parker and Ann Roberts, who have stood down at St John the Divine, which now has no churchwardens; therefore, Ann Roberts has been co-opted on to PCC Standing Committee.  We are also thankful for all of Kerry Porritt’s labours, having relinquished her churchwarden duties at Holy Trinity and for all the extra administrative help she has freely given (and continues to give).  Our Team administrative life is an area where we will look more and more to a widening pool of volunteers.  We must also extend our thanks to Jane Savill, who has been a most willing and efficient PCC Secretary for two years, initially in an acting capacity to cover maternity leave and then appointed in her own right.  Finally, our fullest thanks are reserved for our PCC Treasurer, Liz Holder, not only for another excellent year stewarding our finances and preparing much of this report, but for the incredible 22 years as part of the finance team.  Initially at Holy Trinity and moving on to set up and oversee the PCC finances for Merton Priory Team, Liz now steps down and passes the baton on to others; well done, good and faithful servant! 

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. 

13 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Annual Report of the PCC for the year ended 31 December 2021** 

## **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; meetings have taken place both in person and online, via Zoom, due to the pandemic. 

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 Curate 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 2021** 

## **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 Simon Asquith, Curate(from 27/06/21)|
||Revd Belemo Alagoa, Assistant Priest(to 09/08/21)|
||Revd Canon Duncan Swan, Associate Priest(to 31/12/21)|
|Lay Ministers:|Joy Lyons, Southwark Pastoral Auxiliary (SPA)|
||Nick Mayhew-Smith, Ordinand|
|Churchwardens:|Desmond Davies & Alison Fletcher Rogers, Christ Church|
||Richard Blades & John Eades, Holy Trinity & St Peter|
||Two vacancies, 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 2021** 

## **Parochial Church Council Members from January 2021 to the date this report was signed:** 

**Parish Clergy (ex officio):** Revd Mark Eminson, Chair Revd Alison Judge Revd Simon Asquith (from 27/06/21) Revd Belemo Alagoa (to 09/08/21) Revd Canon Duncan Swan (to 31/12/21) **Churchwardens:** Desmond Davies Christ Church Alison Fletcher Rogers, Lay Chair Christ Church Richard Blades Holy Trinity & St Peter Kerry Porritt (to 23/05/21) Holy Trinity & St Peter John Eades (from 23/05/21) Holy Trinity & St Peter Ann Roberts (to 23/05/21) St John the Divine Jean Parker (to 23/05/21) St John the Divine Two vacancies (from 23/05/21) St John the Divine **Representatives on** Michael Brunt Christ Church **Deanery Synod:** Jane Savill, PCC Secretary 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 (to 23/05/21) Christ Church Bruce Warman (from 23/05/21) Christ Church Andrew Taylor (to 23/05/21) Holy Trinity & St Peter Vacancy (from 23/05/21) Holy Trinity & St Peter Vacancy Holy Trinity & St Peter Vacancy (to 23/05/21) St John the Divine Ann Roberts (from 23/05/21) St John the Divine Vacancy St John the Divine Liz Holder, 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 2021** 

## **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 2022. 

Approved by the PCC on 28 April 2022 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 2021 which are set out on pages 19-41. 

## **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:      29 April 2022 

18 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Statement of Financial Activities for the year ended 31 December 2021** 

|**Note Unrestricted**<br>**Restricted**<br>**Endowment**<br>**TOTAL**<br>**Unrestricted**<br>**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**Funds**<br>**2021**<br>**Funds**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**INCOME & ENDOWMENTS FROM:**<br>Donations and legacies<br>2.1<br>183,892<br>12,607<br>-<br>**196,499**<br>174,833<br>6,211<br>-<br>Raising funds<br>2.2<br>6,607<br>-<br>-<br>**6,607**<br>7,010<br>-<br>-<br>Investment income<br>2.3<br>3,045<br>422<br>-<br>**3,467**<br>2,162<br>446<br>-<br>Church activities<br>2.4<br>85,004<br>-<br>-<br>**85,004**<br>58,659<br>-<br>-<br>______________<br>______________<br>______________<br>______________<br>______________<br>______________<br>______________<br>**TOTAL**<br>278,548<br>13,029<br>-<br>**291,577**<br>242,664<br>6,657<br>-<br>______<br>______<br>______<br>______<br>______<br>______<br>______<br>**EXPENDITURE ON:**<br>Church activities<br>3.1<br>243,899<br>10,283<br>-<br>**254,182**<br>239,144<br>171<br>-<br>Mission giving & donations<br>3.2<br>4,785<br>564<br>-<br>**5,349**<br>11,707<br>2,871<br>-<br>Costs of raising funds<br>3.3<br>1,195<br>-<br>-<br>**1,195**<br>916<br>-<br>-<br>______<br>______<br>______<br>______<br>______<br>______<br>______<br>**TOTAL**<br>249,879<br>10,847<br>-<br>**260,726**<br>251,767<br>3,042<br>-<br>______<br>______<br>______<br>______<br>______<br>______<br>______<br>**NET INCOME/(EXPENDITURE)**<br>28,669<br>2,182<br>-<br>**30,851**<br>(9,103)<br>3,615<br>-<br>Net gains/(losses) on investments<br>5.2<br>(634)<br>-<br>2,058<br>**1,424**<br>513<br>-<br>925<br>Transfers between funds<br>8<br>24,758<br>(10,695)<br>(14,063)<br>**-**<br>4,250<br>(4,250)<br>-<br>**_______**<br>**______**<br>**_______**<br>**______**<br>**_______**<br>**______**<br>**______**<br>**NET MOVEMENT IN FUNDS**<br>52,793<br>(8,513)<br>(12,005)<br>**32,275**<br>(4,340)<br>(635)<br>925<br>**Reconciliation of funds:**<br>Totals funds brought forward 1 January 2021<br>228,973<br>31,731<br>30,801<br>**291,505**<br>233,313<br>32,366<br>29,876<br>______<br>______<br>______<br>______<br>______<br>______<br>______<br>**TOTAL FUNDS CARRIED FORWARD**<br>**31 DECEMBER 2021**<br>281,766<br>23,218<br>18,796<br>**323,780**<br>228,973<br>31,731<br>30,801<br> <br> <br> <br> <br> <br>|**Total**<br>**2020**<br>**£**<br>181,044<br>7,010<br>2,608<br>58,659<br>______________<br>249,321<br>|
|---|---|
||______<br>239,315<br>14,578<br>916<br>______<br>254,809<br>|
||______<br>(5,488)<br>1,438<br>-<br>**______**<br>(4,050)<br>295,555<br>______<br>291,505<br>|



The notes on pages 21-41 form part of these financial statements. 

19 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Balance Sheet as at 31 December 2021** 

|**Note**<br>**Unrestricted**<br>**Restricted**<br>**Endowment**<br>**Funds**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**FIXED ASSETS**<br>Tangible fixed assets<br>5.1<br>46,147<br>-<br>-<br>Investments<br>5.2<br>41,998<br>-<br>16,371<br>_________________<br>_________________<br>_________________<br>88,145<br>-<br>16,371<br>_______<br>_______<br>_______<br> <br>**CURRENT ASSETS**<br>Debtors<br>6<br>34,592<br>1,457<br>-<br>Cash at bank and in hand<br>210,583<br>21,971<br>2,425<br>_________________<br>_________________<br>_________________<br>245,175<br>23,428<br>2,425<br>_______<br>_______<br>_______<br>**CURRENT LIABILITIES**<br>Creditors: amounts falling<br>due within one year<br>7<br>51,554<br>210<br>-<br>_________________<br>_________________<br>_________________<br>**NET CURRENT ASSETS**<br>193,621<br>23,218<br>2,425<br>_______<br>_______<br>_______<br>**TOTAL NET ASSETS**<br>281,766<br>23,218<br>18,796<br>**________**<br>**________**<br>**________**<br>**PARISH FUNDS**<br>8<br>Unrestricted Funds:<br>- PCC General Fund<br>1,000<br>-<br>-<br>- Designated Funds (general)<br>143,295<br>-<br>-<br>- Designated Funds (specific)<br>137,471<br>-<br>-<br>Restricted Funds<br>-<br>23,218<br>-<br>Endowment Funds<br>-<br>-<br>18,796<br>**___________________**<br>**___________________**<br>**___________________**<br>**TOTAL PARISH FUNDS**<br>281,766<br>23,218<br>18,796<br>**________**<br>**________**<br>**________**|**Total**<br>**2021**<br>**£**<br>**46,147**<br>**58,369**<br>_________________<br>**104,516**<br>_______<br>**36,049**<br>**234,979**<br>_________________<br>**271,028**<br>_______<br>**51,764**<br>_________________<br>**219,264**<br>_______<br>**323,780**<br>**________**<br>**1,000**<br>**143,295**<br>**137,471**<br>**23,218**<br>**18,796**<br>**___________________**<br>**323,780**<br>**________**|**Total**<br>**2020**<br>**£**<br>13,526<br>56,865<br>_________________<br>70,391<br>_______<br>17,839<br>222,293<br>_________________<br>240,132<br>_______<br>19,018<br>_________________<br>221,114<br>_______<br>291,505<br>|
|---|---|---|
|||**________**<br>1,000<br>113,796<br>114,177<br>31,731<br>30,801<br>**___________________**<br>291,505<br>**________**|



The financial statements were approved by the PCC and authorised for issue on 28 April 2022 and signed on its behalf by: 



**The Revd Mark Eminson Liz Holder FMAAT** PCC Chair PCC Treasurer 

The notes on pages 21-41 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 2021** 

## **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 12). 

## **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 2021** 

## **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 2021** 

## **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 2021** 

## **2 INCOME & ENDOWMENTS FROM:** 

|<br>**Unrestricted**<br>**Restricted**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>**2.1**<br>**Donation and legacies**<br>Regular giving<br>116,697<br>-<br>Collections at services<br>5,229<br>603<br>All other giving/voluntary income<br>20,149<br>10,695<br>Gift Aid recovered<br>28,110<br>1,309<br>Legacies received<br>12,000<br>-<br>Grants (recurring & one-off)<br>1,707<br>-<br>_______<br>_______<br>183,892<br>12,607<br>_______<br>_______<br>**2.2**<br>**Raising funds**<br>Fundraising events<br>6,607<br>-<br>_______<br>_______<br>**2.3**<br>**Investment income**<br>Dividends<br>674<br>416<br>Bank interest<br>541<br>6<br>Rent from land<br>1,830<br>-<br>_______<br>_______<br>3,045<br>422<br>_______<br>_______<br>**2.4**<br>**Church activities**<br>Fees for weddings and funerals<br>2,690<br>-<br>Church & hall lettings<br>82,304<br>-<br>Bookstall sales<br>10<br>-<br>_______<br>_______<br>85,004<br>-<br>_______<br>_______<br>**________**<br>**________**<br>**TOTAL INCOME**<br>278,548<br>13,029<br>**________**<br>**________**|**Total**<br>**2021**<br>**£**<br>**116,697**<br>**5,832**<br>**30,844**<br>**29,419**<br>**12,000**<br>**1,707**<br>_______<br>**196,499**<br>_______<br>**6,607**<br>_______<br>**1,090**<br>**547**<br>**1,830**<br>_______<br>**3,467**<br>_______<br>**2,690**<br>**82,304**<br>**10**<br>_______<br>**85,004**<br>_______<br>**________**<br>**291,577**<br>**________**|**Total**<br>**2020**<br>**£**<br>112,085<br>4,385<br>27,067<br>28,091<br>4,652<br>4,764<br>_______<br>181,044<br>_______<br>7,010<br>_______<br>1,190<br>960<br>458<br>_______<br>2,608<br>_______<br>1,523<br>57,136<br>-<br>_______<br>58,659<br>_______<br>|
|---|---|---|
|||**________**<br>249,321<br>**________**|



24 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

|**3**|**EXPENDITURE ON:**|||||
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||**£**|**£**|**£**|**£**|
|**3.1**|**Church activities**|||||
||Church activities:|||||
||Diocesan parish support fund|155,380|5,000|**160,380**|161,075|
||Salaries of parish staff|13,612|-|**13,612**|12,866|
||Clergy & assistant staff expenses|2,370|4,200|**6,570**|2,181|
||Church expenses:|||||
||Mission & evangelism costs|89|-|**89**|157|
||Education|483|-|**483**|1,109|
||Church insurance|10,848|-|**10,848**|10,960|
||Routine maintenance|9,003|546|**9,549**|8,100|
||Parish office costs|3,139|-|**3,139**|3,373|
||Upkeep of services|3,052|-|**3,052**|2,699|
||Upkeep of church gardens|86|-|**86**|-|
||Church cleaning – contractors & supplies|716|-|**716**|1,184|
||Organ & piano tuning|1,986|-|**1,986**|1,880|
||Depreciation on tangible fixed assets|7,093|-|**7,093**|3,121|
||Church utilities - electricity, gas & water|5,183|-|**5,183**|5,590|
||Other church running expenses|5,280|537|**5,817**|2,537|
||Costs of trading:|||||
||Hall insurance|2,072|-|**2,072**|2,015|
||Hall routine maintenance|2,026|-|**2,026**|31|
||Hall cleaning – contractors & supplies|471|-|**471**|1,148|
||Hall utilities - electricity, gas & water|8,554|-|**8,554**|8,135|
||Major capital expenditure:|||||
||Garden decking (HT)|6,132|-|**6,132**|-|
||Hall boiler (CC)|3,738|-|**3,738**|-|
||External noticeboard (CC)|2,586|-|**2,586**|-|
||Organ blower repair (CC)|-|-|**-**|4,284|
||Hall rewiring (CC)|-|-|**-**|4,254|
||Hall alarm refit (CC)|-|-|**-**|2,580|
|||________|_______|________|_______|
||TOTAL CHURCH ACTIVITIES|243,899|10,283|**254,182**|239,315|
|||**_______**|**______**|**_______**|**_______**|



25 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

|**3**|**EXPENDITURE ON: (continued)**|||||
|---|---|---|---|---|---|
||**Unrestricted**||**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||**£**|**£**|**£**|**£**|
|**3.2**|**Mission giving and donations**|||||
||Church overseas & missionary societies:|||||
||World Day of Prayer|150|-|**150**|-|
||Joshua Orphan & Community Care, Malawi|-|-|**-**|2,083|
||Relief and development agencies:|||||
||Christian Aid|-|87|**87**|160|
||Home mission & church organisations:|||||
||Christian CARE Merton|1,750|210|**1,960**|1,001|
||Bishop of Southwark’s Lent Appeal|-|75|**75**|171|
||Wimbledon Food Bank|-|-|**-**|4,604|
||Faith in Action – Merton Homelessness Project|-|-|**-**|2,144|
||Wimbledon Guild|-|-|**-**|547|
||Merton Night Shelter|-|-|**-**|455|
||Secular charities:|||||
||Rethink Mental Illness|1,750|-|**1,750**|-|
||Merton Citizens (part of Citizens UK)|1,108|192|**1,300**|1,330|
||South London Refugee Association|-|-|**-**|2,083|
||Other donations under £100|27|-|**27**|-|
|||________|_______|________|_______|
||TOTAL MISSION GIVING & DONATIONS|4,785|564|**5,349**|14,578|
|||**_______**|**______**|**_______**|**_______**|



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. 

## **3.3 Costs of raising funds** 

|Costs of fundraising events<br>Costs of supporting regular giving<br>TOTAL COSTS OF RAISING FUNDS<br> <br>**TOTAL EXPENDITURE**|1,116<br>79<br>________<br>1,195<br>**_______**<br>**_______**<br>249,879<br>**_______**|-<br>-<br>_______<br>-<br>**______**<br>**_______**<br>10,847<br>**_______**|**1,116**<br>**79**<br>________<br><br>**1,195**<br>**_______**<br>**_______**<br>**260,726**<br>**_______**|853<br>63<br>_______<br>916<br>**_______**<br>|
|---|---|---|---|---|
|||||**_______**<br>254,809<br>**_______**|



26 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **4.1 STAFF COSTS** 

Included within expenditure on church activities (see note 3 above) are the following staff costs: 

||**Total**|**Total**|
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Gross Salaries|**13,445**|12,704|
|Employer National Insurance contributions|**-**|-|
|Employment Allowance|**-**|-|
|Employer Pension contributions|**167**|162|
||______|______|
||**13,612**|12,866|
||______|______|



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 2021 (2020: vacant); the church employed one Bookkeeper (2020: one). 

- Christ Church and St John the Divine jointly employed an Organist/Music Leader (2020: one), and each church employed a Cleaner (2020: one each). 

## **4.2 RELATED PARTIES** 

Liz Holder, PCC Treasurer and member of the PCC, was paid £1,200 (2020: £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 £1,960 in 2021 (2020: £1,001). 

The expenses of four (2020: three) members of the PCC amounting to £4,802 (2020: £426) in relation to travel, housing, training and retreats were met by the PCC during the year.  The significant increase from 2020 is due to the addition of housing costs for our new curate. 

Aggregated unrestricted donations from PCC members totalled £19,052 (2020: £14,395). 

27 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **4.3 STAFF PENSIONS** 

**Merton Priory PCC** participates in the Pension Builder Scheme section of the Church Workers Pension Fund (CWPF) for lay staff.  CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers. 

The Church Workers Pension Fund has two sections: 

1. the Defined Benefits Scheme 

2. the Pension Builder Scheme, which has two subsections; 

a. a deferred annuity section known as Pension Builder Classic, and, 

b. a cash balance section known as Pension Builder 2014. 

## **Pension Builder Scheme** 

Both sections of the Pension Builder Scheme are classed as defined benefit schemes. 

_**Pension Builder 2014**_ is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement.  Pension contributions are recorded in an account for each member.  Discretionary bonuses may be added before retirement, depending on investment returns and other factors.  The account, plus any bonuses declared is payable, unreduced, from age 65. 

There is no sub-division of assets between employers in each section of the Pension Builder Scheme. 

The scheme is considered to be 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 means 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 the contributions payable **(2021: £167** ; 2020: £162 **)** . 

A valuation of the Pension Builder Scheme is carried out once every three years.  The most recent valuation was carried out as at 31 December 2019.  The next valuation is due as at 31 December 2022. 

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m 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 the failed employer’s pension liabilities. 

28 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **5 FIXED ASSETS** 

## **5.1 Tangible Fixed Assets** 

|||**Fixtures**|
|---|---|---|
|||**& Fittings**|
|||**£**|
|Cost|At 1 January 2021|70,369|
||Disposals|(4,957)|
||Additions at cost|39,714|
|||_________|
||**At 31 December 2021**|**105,126**|
|||_________|
|Depreciation|At 1 January 2021|56,843|
||Charge for the year|7,093|
||Withdrawn on disposals|(4,957)|
|||_________|
||**At 31 December 2021**|**58,979**|
|||_________|
|**Net Book Value**|**at 31 December 2021**|**46,147**|
|||_________|
|Net Book Value at|31 December 2020|13,526|
|||_________|
|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 21). 

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) and refurbishment of the reception area (2007) are both fully depreciated.  The audio-visual system was installed in 2015 and will be depreciated over ten years.  The original kitchen improvements from 2002 were disposed of and a new kitchen installed in 2021, which 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 2021** 

## **5.2 Investments** 

||**Unrestricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Market value 1 January 2021|42,553|14,313|**56,866**|55,353|
|Dividends reinvested|79|-|**79**|74|
|Unrealised gains/(losses) on revaluation|(634)|2,058|**1,424**|1,438|
||______|______|______|______|
|**Market value 31 December 2021**|41,998|16,371|**58,369**|56,865|
||______|______|______|______|
|**Market value represented by**|||||
|**investments in:**|||||
|<br>CBF Investment Fund shares|3,162|16,371|**19,533**|17,004|
|Charibond Charities Fixed Interest|||||
|Common Investment Fund shares|28,836|-|**28,836**|29,861|
|Polka Theatre – interest in the freehold|10,000|-|**10,000**|10,000|
||______|______|______|______|
||41,998|16,371|**58,369**|56,865|
||______|______|______|______|



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 2021.  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 2021** 

## **6 DEBTORS** 

||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Gift Aid recoverable|22,235|1,247|**23,482**|12,024|
|Accrued income|10,759|-|**10,759**|4,045|
|Prepayments and other debtors|1,598|210|**1,808**|1,770|
||______|______|_______|______|
||34,592|1,457|**36,049**|17,839|
||______|______|_______|______|



## **7 CREDITORS** 

## **Amounts falling due within one year:** 

||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Accruals|43,509|210|**43,719**|5,691|
|Payroll tax creditor|550|-|**550**|491|
|Pension creditor|30|-|**30**|1|
|Other creditors and|||||
|income received in advance|7,465|-|**7,465**|12,835|
||_______|________|_______|_______|
||51,554|210|**51,764**|19,018|
||_______|________|_______|_______|



31 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **8 FUND ANALYSIS** 

## **8.1a Fund Summary (current year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/21**||||**Losses**|**31/12/21**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Funds**|||||||
|PCC General Fund|1,000|1,884|(1,884)|-|-|**1,000**|
|**Designated Funds (General)***|||||||
|Christ Church|37,381|79,228|(71,329)|(3,124)|392|**42,548**|
|Holy Trinity|34,399|160,491|(133,914)|(6,300)|(1,026)|**53,650**|
|St John the Divine|42,016|36,736|(31,655)|-|-|**47,097**|
|**Designated Funds (Specific)***|||||||
|PCC|558|-|-|-|-|**558**|
|Christ Church|716|-|(504)|3,124|-|**3,336**|
|Holy Trinity|110,474|209|(10,246)|31,058|-|**131,495**|
|St John the Divine|2,429|-|(347)|-|-|**2,082**|
||______|______|______|______|_____|_______|
||228,973|278,548|(249,879)|24,758|(634)|**281,766**|
||______|______|______|______|_____|_______|
|**Restricted Funds**|||||||
|PCC|2,499|4,738|(4,738)|-|-|**2,499**|
|Christ Church|2,898|1,308|-|-|-|**4,206**|
|Holy Trinity|15,241|6,399|(5,401)|(10,695)|-|**5,544**|
|St John the Divine|11,093|584|(708)|-|-|**10,969**|
||______|______|______|______|_____|_______|
||31,731|13,029|(10,847)|(10,695)|-|**23,218**|
||**______**|**______**|**______**|**_______**|**_____**|**_______**|
|**Endowment Funds**|||||||
|Holy Trinity(expendable)|14,063|-|-|(14,063)|-|**-**|
|St John the Divine(permanent)|16,738|-|-|-|2,058|**18,796**|
||______|______|______|______|_____|_______|
||30,801|-|-|(14,063)|2,058|**18,796**|
||______|______|______|______|_____|_______|
||______|______|______|______|_____|_______|
|**TOTAL FUNDS**|291,505|291,577|(260,726)|-|1,424|**323,780**|
||______|______|______|______|_____|_______|



32 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **8.1b Fund Summary (prior 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|
||______|______|______|______|_____|_______|



* **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 2021** 

## **8.2 Individual Church Funds** 

## **8.2.1a PCC (current year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Balance**|
|---|---|---|---|---|---|
||**01/01/21**||||**31/12/21**|
||**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Fund**|1,000|1,884|(1,884)|-|**1,000**|
|**Designated Funds (Specific)**||||||
|MP3 Players|558|-|-|-|**558**|
|**Restricted Funds**||||||
|Curate Housing|-|4,200|(4,200)|-|**-**|
|Youth Work|2,499|-|-|-|**2,499**|
|Other Restricted Donations|-|538|(538)|-|**-**|
||_______|______|_______|______|_______|
||4,057|6,622|(6,622)|-|**4,057**|
||_______|______|_______|______|_______|



• 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 2021. 

• Curate Housing: monthly rent is payable to Southwark Diocese and is covered by a very generous restricted donation. 

• 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. 

## **8.2.1b PCC (prior 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|
||_______|______|_______|______|_______|



34 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **8.2.2a Christ Church, Colliers Wood (current year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/21**||||**Losses**|**31/12/21**|
||**£**|**£**|**£**|<br>**£**|**£**|**£**|
|**Designated Fund (General)**|37,381|79,228|(71,329)|<br>(3,124)|392|**42,548**|
|**Designated Funds (Specific)**|||||||
|Hall & Church Repairs Fund|716|-|-|<br>-|-|**716**|
|Bells Fund|-|-|(504)|<br>3,124|-|**2,620**|
|**Restricted Funds:**|||||||
|Merton Night Shelters|1,771|-|-|<br>-|-|**1,771**|
|Mission & Charities:|||||||
|- Children’s Society|408|-|-|<br>-|-|**408**|
|- Christian Aid|227|200|-|<br>-|-|**427**|
|- Bishop of Southwark’s Lent Call|-|184|-|<br>10|-|**194**|
|- Faith in Action|-|574|-|<br>-|-|**574**|
|- Other Charities|10|-|-|<br>(10)|-|**-**|
|150thAnniversary Fund|187|350|-|<br>-|-|**537**|
|Hymn Book Fund|295|-|-|<br>-|-|**295**|
||_______|______|______|<br>______|______|_______|
||40,995|80,536|(71,833)|<br>-|392|**50,090**|
||_______|______|______|<br>______|______|_______|



• 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.  Due to the COVID-19 pandemic, Colliwobbles was not able to operate during 2021; the group is currently seeking new volunteer leaders so that it can re-start. 

• Bells Fund:  the transfer of £3,124 from the general fund in 2021 represents monies donated by the bellringers in previous years. The new designated Bells Fund will be used for the maintenance of the bells in the church. 

• 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.  The night shelter was not held during 2021 on the advice of Merton Council and Public Health England; Christ Church decided instead to support Faith in Action Merton Homelessness Project with its Christmas collections, for which £574 was raised. 

• 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. 

35 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **8.2.2b Christ Church, Colliers Wood (prior year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/20**||||**Losses**|**31/12/20**|
||**£**|**£**|**£**|<br>**£**|**£**|**£**|
|**Designated Fund (General)**|18,742|75,249|(60,947)|<br>4,164|173|37,381|
|**Designated Funds (Specific)**|||||||
|Hall & Church Repairs Fund|3,210|-|(2,580)|<br>86|-|716|
|**Restricted Funds:**|||||||
|Organ Fund|-|4,250|-|<br>(4,250)|-|-|
|Merton Night Shelters|1,816|-|(45)|<br>-|-|1,771|
|Mission & Charities:|||||||
|- Children’s Society|387|21|-|<br>-|-|408|
|- Christian Aid|227|-|-|<br>-|-|227|
|- Christian CARE Merton|1,001|-|(1,001)|<br>-|-|-|
|- Other Charities|10|-|-|<br>-|-|10|
|150thAnniversary Fund|187|-|-|<br>-|-|187|
|Hymn Book Fund|295|-|-|<br>-|-|295|
||_______|______|______|<br>______|______|_______|
||25,875|79,520|(64,573)|<br>-|173|40,995|
||_______|______|______|<br>______|______|_______|



36 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **8.2.3a Holy Trinity & St Peter, South Wimbledon (current year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/21**||||**Losses**|**31/12/21**|
||**£**|**£**|**£**|<br>**£**|**£**|**£**|
|**Designated Fund (General)**|34,399|160,491|(133,914)|<br>(6,300)|(1,026)|**53,650**|
|**Designated Funds (Specific)**|||||||
|Marian Esling Legacy (income)|42,098|209|-|<br>-|-|**42,307**|
|Annual Tithe|9,400|-|(3,500)|<br>6,300|-|**12,200**|
|Special Projects Fund|47,879|-|-|<br>(14,956)|-|**32,923**|
|Fixed Assets Fund|11,097|-|(6,746)|<br>39,714|-|**44,065**|
|**Restricted Funds**|||||||
|Kitchen Refurbishment|10,070|625|-|<br>(10,695)|-|**-**|
|Merton Night Shelters|3,542|-|-|<br>-|-|**3,542**|
|Mission & Charities:|||||||
|- Bishop of Southwark’s Lent Call|-|564|-|<br>-|-|**564**|
|- Merton Citizens|192|-|(192)|<br>-|-|**-**|
|Flower Fund|4|-|-|<br>-|-|**4**|
|Junior Church collections for charity|<br>1,125|-|-|<br>-|-|**1,125**|
|Other Restricted Donations|308|5,210|(5,209)|<br>-|-|**309**|
|**Expendable Endowment Fund**|||||||
|Marian Esling Legacy (capital)|14,063|-|-|<br>(14,063)|-|**-**|
||_______|______|______|<br>______|______|_______|
||174,177|167,099|(149,561)|<br>-|(1,026)|**190,689**|
||_______|______|______|<br>______|______|_______|



- Marian Esling Legacy (income): the remaining interest on the Marian Esling Legacy Fund which is designated for 

- capital projects. 

• Annual Tithe: Holy Trinity gives away 5% of its unrestricted voluntary income, excluding fundraising and investment income, to charitable causes each year.  The balance of £12,200 at the end of 2021 represents £5,900 from the 2020 tithe and £6,300 from the 2021 tithe, both of which will be distributed in 2022. 

• 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.  £14,956 was transferred to the Fixed Assets Fund in 2021 to cover part of the cost of the new kitchen. 

• Fixed Assets Fund: the remaining cost of tangible fixed assets, from where they are now depreciated.  £39,714 was transferred to this fund in 2021 to cover the cost of the new kitchen which will be depreciated over 10 years. • Kitchen Refurbishment: the remaining balance of £10,695 has now been transferred to the Fixed Assets Fund to cover part of the cost of the new kitchen. 

37 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 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.  On the advice of Merton Council and Public Health England, the night shelter was not held in 2021. 

- 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 2022. 

- Other Restricted Donations: the balance of £309 represents the remainder of a gift for future development of 

- the prayer corner and a Christmas collection for the Samaritans.  During 2021, an anonymous gift of £5,000 was made towards Holy Trinity’s contribution to the Diocesan Parish Support Fund, and £210 was raised at a poetry recital for Christian CARE Merton. 

- Marian Esling 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 capital projects in the church.  During 2021, the final balance of £14,063 was used towards the cost of the new kitchen. 

## **8.2.3b Holy Trinity & St Peter, South Wimbledon (prior year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/20**||||**Losses**|**31/12/20**|
||**£**|**£**|**£**|<br>**£**|**£**|**£**|
|**Designated Fund (General)**|46,230|132,585|(134,204)|<br>(10,552)|340|34,399|
|**Designated Funds (Specific)**|||||||
|Marian Esling Legacy (income)|41,804|294|-|<br>-|-|42,098|
|Annual Tithe|12,500|-|(9,000)|<br>5,900|-|9,400|
|Special Projects Fund|43,227|-|-|<br>4,652|-|47,879|
|Fixed Assets Fund|13,871|-|(2,774)|<br>-|-|11,097|
|**Restricted Funds**|||||||
|Kitchen Refurbishment|10,070|-|-|<br>-|-|10,070|
|Merton Night Shelters|2,565|1,433|(456)|<br>-|-|3,542|
|Mission & Charities:|||||||
|- Bishop of Southwark’s Lent Call|83|37|(120)|<br>-|-|-|
|- Merton Citizens|192|-|-|<br>-|-|192|
|- Wimbledon Guild|547|-|(547)|<br>-|-|-|
|- Wimbledon Food Bank(Trussell Trust)<br>547|||(547)|<br>-|-|-|
|Flower Fund|4|-|-|<br>-|-|4|
|Junior Church collections for charity|<br>1,081|44|-|<br>-|-|1,125|
|Other Restricted Donations|83|385|(160)|<br>-|-|308|
|**Expendable Endowment Fund**|||||||
|Marian Esling Legacy (capital)|14,063|-|-|<br>-|-|14,063|
||_______|______|______|<br>______|______|_______|
||186,867|134,778|(147,808)|<br>-|340|174,177|
||_______|______|______|<br>______|______|_______|



38 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **8.2.4a St John the Divine, Merton (current year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/21**||||**Losses**|**31/12/21**|
||**£**|**£**|**£**|<br>**£**|**£**|**£**|
|**Designated Fund (General)**|42,016|36,736|(31,655)|<br>-|-|**47,097**|
|**Designated Funds (Specific)**|||||||
|Fixed Assets Fund|2,429|-|(347)|<br>-|-|**2,082**|
|**Restricted Funds**|||||||
|Bells Centenary Project|2,804|-|(546)|<br>-|-|**2,258**|
|Mission & Charities|-|162|(162)|<br>-|-|**-**|
|Church Maintenance & Repairs:|||||||
|- Mackrell Trust(T0046/income)|8,289|422|-|<br>-|-|**8,711**|
|**Permanent Endowment Fund**|||||||
|Mackrell Trust(T0046/capital)|16,738|-|-|<br>-|2,058|**18,796**|
||______|_____|______|<br>_____|____|_______|
||72,276|37,320|(32,710)|<br>-|2,058|**78,944**|
||______|_____|______|<br>_____|____|_______|



- 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 £2,258 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 had been anticipated that this would be used for repairs to the vestry roof in 2021 but the project was put on hold due to the COVID-19 pandemic. 

• Mission & Charities: restricted donations for charities.  During 2021, funds were raised for both Christian Aid and 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. 

39 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **8.2.4b St John the Divine, Merton (prior year)** 

||**Balance**|**Income**|**Expenditure**|**Transfers**|**Gains &**|**Balance**|
|---|---|---|---|---|---|---|
||**01/01/20**||||**Losses**|**31/12/20**|
||**£**|**£**|**£**|<br>**£**|**£**|**£**|
|**Designated Fund (General)**|49,742|29,164|(36,543)|<br>(347)|-|42,016|
|**Designated Funds (Specific)**|||||||
|Fixed Assets Fund|2,429|-|(347)|<br>347|-|2,429|
|**Restricted Funds**|||||||
|Bells Centenary Project|2,929|-|(125)|<br>-|-|2,804|
|Mission & Charities|-|41|(41)|<br>-|-|-|
|Church Maintenance & Repairs:|||||||
|- Mackrell Trust(T0046/income)|7,843|446|-|<br>-|-|8,289|
|**Permanent Endowment Fund**|||||||
|Mackrell Trust(T0046/capital)|15,813|-|-|<br>-|925|16,738|
||______|_____|______|<br>_____|____|_______|
||78,756|29,651|(37,056)|<br>-|925|72,276|
||______|_____|______|<br>_____|____|_______|



## **9 OPERATING LEASE COMMITMENTS** 

The total future minimum lease payments under non-cancellable operating leases are payable: 

||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Not later than one year|**706**|288|
|Later than one year and not later than five years|**2,293**|-|
||_____|_____|
||**2,999**|288|
||_____|_____|



The previous printer/photocopier lease expired on 12 April 2021.  The PCC signed a new lease on 9 April 2021 which commits the PCC to total lease payments of £3,528 over five years. 

40 



## **THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF MERTON PRIORY** 

## **Notes to the Financial Statements for the year ended 31 December 2021** 

## **10 CAPITAL COMMITMENTS** 

The PCC has the following capital commitments, which it expects to complete in 2022: 

||**Expected**|Unrestricted|Restricted|Endowment|
|---|---|---|---|---|
||**Cost**|Funds|Funds|Funds|
||**£**|£|£|£|
|**Christ Church**|||||
|No capital works planned for 2022|||||
|(also see Section 6 of the Annual Report, page 12)|**-**|-|-|-|
|**Holy Trinity**|||||
|Refurbishing lavatories|**2,600**|2,600|-|-|
|Redecorating committee room and reception area|<br>**1,500**|1,500|-|-|
|Kitchen boiler replacement|**1,650**|1,650|-|-|
|**St John the Divine**|||||
|No capital works planned for 2022|||||
|(also see Section 6 of the Annual Report, page 12)|**-**|-|-|-|
||______|_____|_____|_____|
||**5,750**|5,750|-|-|
||______|_____|_____|_____|



41