Page 18
ST JAMES'S CHURCH, PADDINGTON
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| INCOME AND EXPENDITURE Notes INCOMING RESOURCES Income and Endowments from: Collections Donations and Legacies 3 Other Trading Activities 3 Charitable Activities: Services and other fees 4 Investment Income Rents receivable 5 Bank and deposit Interest TOTAL INCOME EXPENDITURE ON Raising Funds 6 Charitable Activities Clergy, services and parish work 7 Occupancy costs 8 Support and governance costs 9 Grants or donations payable 10 TOTAL EXPENDITURE NET INCOME / (EXPENDITURE) TRANSFERS BETWEEN FUNDS NET INCOME/(EXPENDITURE) BEFORE OTHER RECOGNISED GAINS /( LOSSES) Unrealised Gains and (losses) on investments 12 Realised Gains and (losses) on investments NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total Funds brought forward Total funds carried forward |
Unrestricted Funds £ 78,349 36,590 12,172 194,548 16,922 338,581 48,873 201,264 47,436 61,980 5,790 365,343 -26,762 5,851 -20,911 -75,793 0 -96,704 1,582,744 1,486,040 |
Restricted Funds £ 0 0 0 0 13,818 13,818 0 0 0 3,154 0 3,154 10,664 0 10,664 -61,990 0 -51,326 618,816 567,490 |
Endowment Funds 0 0 0 0 5,851 5,851 0 0 0 0 0 0 5,851 -5,851 0 -26,247 0 -26,247 222,968 196,721 |
Total Funds 2022 £ 78,349 36,590 12,172 194,548 36,591 358,250 48,873 201,264 47,436 65,134 5,790 368,497 -10,247 0 -10,247 -164,030 0 -174,277 2,424,528 2,250,251 |
Total Funds 2021 £ 104,028 19,059 5,244 172,393 36,326 337,050 34,033 179,789 101,855 79,844 1,772 397,293 -60,243 0 -60,243 174,380 4,559 118,696 2,305,831 2,424,527 |
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The notes on pages 20 to 31 form part of these accounts. All activities are continuing. There are no gains or losses other than those recognised through the income and expenditure account.
ST JAMES'S CHURCH, PADDINGTON
BALANCE SHEET AS AT 31 DECEMBER 2022
| Note FIXED ASSETS Tangible assets 13 Investments 12 CURRENT ASSETS Debtors and prepayments 14 Cash at bank and in hand Short term deposits CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 15 NET CURRENT ASSETS NET ASSETS FUNDS OF THE CHARITY Unrestricted Income Funds: General Designated Investment Fund Fixed Asset Funds: Designated Fixed Asset Funds Revaluation Reserve Restricted Funds TOTAL INCOME FUNDS 16 RESTRICTED ENDOWMENT FUNDS 17 TOTAL FUNDS David Madel Churchwarden For and on behalf of the Parochial Church Council : |
Page 19 £ £ £ £ 1,005,809 1,015,174 1,229,409 2,235,218 1,393,439 2,408,613 4,516 2,830 27,472 23,591 361 361 32,349 26,782 -17,316 -10,867 15,033 15,915 2,250,251 2,424,528 16,402 33,890 568,068 584,470 643,861 677,751 617,187 620,610 284,383 901,570 284,383 904,993 567,490 618,816 2,053,530 2,201,560 196,721 222,968 2,250,251 2,424,528 Lorna Harrison Churchwarden 3 May 2023 2022 2021 |
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The notes on pages 20 to 31 form part of these accounts.
ST JAMES'S CHURCH, PADDINGTON NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022
Page 20
Accounting Policies
1 Basis of Preparation
The financial statements have been prepared in accordance with current Church Accounting Regulations together with the Charities Act 2011, accounting standard FRS102 and the Statement of Recommended Practice, Accounting and Reporting by Charities FRS102.
These financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value and the periodic revaluation of leaseholdings.
The accounts include 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.
1a Funds
Restricted capital (endowment) funds are those where the interest may be spent in accordance with the donor’s wishes or the Trust Deed, but where the capital may not be spent.
Restricted income funds are those where the capital and interest may be spent in accordance with the donor’s wishes or the trust Deed. Donations for a specific purpose are also restricted income funds.
Unrestricted funds are those which are not subject to any restriction as to their use. Such funds are available for application on the general purpose of the PCC. Funds designated for a particular purpose by the PCC are also unrestricted, since the PCC may reverse such decisions at any time prior to expenditure taking place.
1b Incoming Resources
Collections are recognised when received by or on behalf of the PCC.
Planned giving by bankers order (or regular donations) is recognised only when received.
Income tax recoverable on Gift Aid donations is recognised when the income is recognised.
Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement; the amount is quantifiable, and its ultimate receipt by the PCC is probable.
Income from church lettings and fee income is recognised when the rental or fee is due.
Dividends and interest are accounted for when receivable.
All other income is recognised gross, and on a receivable basis.
ST JAMES'S CHURCH, PADDINGTON NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)
Page 21
1c Resources Expended
Costs are recognised as soon as a legal obligation can be quantified and the trustees consider that crystallisation of the cost is probable.
Cost of generating funds represents the cost of advertising, and the cost of maintaining properties that currently generate income for the PCC.
Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC.
The Diocesan Common Fund is accounted for when payable. Any amount unpaid at 31 December is provided in the accounts as a liability.
Support costs include all costs incurred or payments made in the furtherance of the PCC’s objects. Governance costs include the cost of compliance with constitutional and statutory requirements.
1d Fixed Assets
Consecrated land and buildings.
Consecrated or beneficial property is excluded from the accounts by Section 10(2)(a) of the Charities Act 2011.
Movable church furnishings held by the churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted for as inalienable property unless consecrated. They are listed in the church’s inventory, which can be inspected (at any reasonable time). For inalienable property acquired prior to 2000 there is insufficient cost information available and therefore such assets are not valued in the accounts. Items acquired since 1[st] January 2000 have been capitalised and depreciated on a straight line basis in the accounts over their currently anticipated useful economic life.
Other Buildings
Properties are included in the accounts at valuation. The PCC reviews the valuation annually, and any permanent impairment in value is transferred to the SOFA. No depreciation is charged on these buildings as, in the view of the PCC, the estimated useful life is so long that any charge would be immaterial.
61 Pembroke House, Hallfield Estate. The church owns a long lease of this residential flat, granted for a term of 125 years from 1 March 1982, and acquired by the PCC for £240,617 in 2004. It is used as a home for the Assistant Priest and therefore generates no income. It is accounted for as a long leasehold asset, see note 13. The PCC have revalued the property in October 2019, in accordance with accounting standards, to £525,000, (2018 £240,617).
ST JAMES'S CHURCH, PADDINGTON NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)
Page 22
The church owns a long sublease of Holy Trinity Hall in the basement of 170 Gloucester Terrace and the freehold of the whole site subject to a long head lease. Both were acquired at no cost to the parish as a result of the amalgamation of the benefice of Holy Trinity, Bishop’s Bridge Road with St James’s in the 1960s and are therefore not accounted for. A 20 year sub-under lease of the Hall was granted in 2011 and rent is accounted for in the Statement of Financial Activities, (SOFA).
The church also owns an 81.7% interest in the freehold of the blocks of flats at 6-12 Gloucester Terrace which include the vicarage, constructed between 1999 and 2003. This also had no known cost to the parish as the flats were constructed on the site of the former vicarage and church hall, and is therefore also not accounted for. Ground rents are accounted for in the SOFA.
Other Assets
Equipment used within the church premises with a purchase price exceeding £1,000 is capitalised. Individual items of equipment with a purchase price of £1,000 or less are written off when the asset is acquired.
Depreciation is provided at the following rates to write off fixed assets over their useful lives. In addition, an annual impairment review is carried out, and where appropriate the carrying value of an asset is reduced to the higher of net realisable value and recoverable value through continued use.
Organ restoration -Straight line over 50 years Church furnishings -Straight line over 20 years Furniture, fittings and office equipment -Straight line over 5 years
1e Investments
Investments are valued at market value at 31 December, the figures being provided by the Fund Managers. Movements in the value of investments, and gains or losses realised on disposal are accounted for through the SOFA. Investments are held for the purpose of long term income generation or larger infrequent projects and repairs. However, investments can be realised quickly, usually with 1 weeks notice, if the PCC require additional liquidity.
1f Current Assets
Amounts owing to the PCC in respect of fees, rent or other income are shown as debtors less provision for amounts that may prove irrecoverable.
Short term deposits include cash held on deposit either with the CBF Church of England Funds or at the bank.
ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)
Page 23
1g Operating Leases
Rentals payable under operating leases are charged to resources expended on a straight line basis over the period of the lease.
1h Reserves Policy
~~F~~ ree reserves are defined as short term investments (see 1e above) and deposit or current bank accounts, under the control of the PCC and which are used both for immediate overhead expenditure and future liabilities.
The PCC may designate part of these free reserves, for a specific named purpose or project after the conclusion of which any surpluses are returned to the free reserve as cash or re invested for income generation.
As short term investments are readily liquidated, the PCC has resolved to maintain only a small cash reserve on deposit or current bank accounts up to a maximum of 1 months budgeted expenditure. All other funds should be held as investments.
Free reserves, (including designated investment funds) are held for the following purposes:
1) To provide an annual income of interest to be spent on general overheads.
2) To provide for potential future liabilities identified through risk analysis.
3) To provide funds for specific named projects identified by the PCC.
4) To provide generally for repairs to the fabric of the church.
In addition to free reserves, the Designated Fixed Asset Fund holds the the leasehold property at 61, Pembroke House and the restored organ.
Together these comprise the Unrestricted Funds of the church. See Balance Sheet page 18 and Movement on Funds note 16 page 30.
The Restricted Income Fund is not available for general expenditure but represent those donations, and interest thereon, given for the renovation and improvement of St James. The majority of this fund is held as short term investments, generating income for the fund and as such is held as a reserve until required.
There are 2 Endowment Funds which are held permanently as investments. The trusts of these funds allow the income to be spent on general overheads as determined by the PCC.
1i Going Concern
The church is able to pay its liabilities as they fall due, has no significant contingent liabilities or post balance sheet events that would contradict this view and has sufficient reserves to continue to operate for at least 12 months from the signature date of these accounts.
Page 24
ST JAMES'S CHURCH, PADDINGTON
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
2 COMPARATIVE INCOME AND EXPENDITURE:
Comparative figures for Unrestricted, Restricted and Endowment funds for the 2021 Financial Yea r.
| INCOMING RESOURCES Income and Endowments from: Collections Donations and Legacies Charitable Activities: Services and other fees Other Trading Activities: Rent from church hire Investment Income Rents receivable Bank and deposit Interest TOTAL INCOME EXPENDITURE ON Raising Funds Charitable Activities Clergy, services and parish work Occupancy costs Support and governance costs Grants or donations payable TOTAL EXPENDITURE NET INCOME / (EXPENDITURE) TRANSFERS BETWEEN FUNDS NET INCOME/(EXPENDITURE) BEFORE OTHER RECOGNISED GAINS /( LOSSES) Unrealised Gains and (losses) on investments Gains on the Revaluation of Fixed Assets NET MOVEMENT IN FUNDS for 2021 |
Unrestricted Funds £ 75,571 5,244 18,711 172,393 18,208 290,127 30,110 183,712 88,656 56,803 1,772 361,053 -70,926 4,754 -66,172 80,571 4,559 18,958 |
Restricted Funds £ 28,806 0 0 0 13,364 42,170 0 0 13,199 23,041 0 36,240 5,930 0 5,930 65,906 0 71,836 |
Endowment Funds £ 0 0 0 0 4,754 4,754 0 0 0 0 0 0 4,754 -4,754 0 27,903 0 27,903 |
Total Funds 2021 £ 104,028 5,244 19,059 172,393 36,326 337,050 30,110 183,712 101,855 79,844 1,772 397,293 -60,243 0 -60,242 174,380 4,559 118,697 |
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ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
Page 25
| 2022 3 COLLECTIONS, DONATIONS AND LEGACIES £ Unrestricted Restricted Funds Funds Total £ £ £ Stewardship and collections 36,425 36,425 Donations and gifts 22,930 22,930 Gift Aid receivable 9,162 9,162 Other income 9,832 9,832 78,349 0 78,349 OTHER TRADING ACTIVITIES Rent from church hire 34,048 34,048 Sales, books media and fairs 2,542 2,542 36,590 0 36,590 4 CHARITABLE ACTIVITIES General fees receivable for services 2,262 2,262 Fees for music provision at services 2,710 2,710 Fees for Pastoral Assistant 7,200 7,200 12,172 0 12,172 5 INVESTMENT INCOME : RENTS Ground rents - 6-12 Gloucester Terrace 12,010 12,010 Crypt income 66,000 66,000 Car park income 32,273 32,273 Holy Trinity Hall 60,825 60,825 Reimbursed utility expenses 23,440 23,440 194,548 0 194,548 |
2021 £ Total £ 38,790 49,126 10,812 5,300 104,028 18,711 348 19,059 1,247 3,997 0 5,244 12,010 66,046 29,944 41,300 23,093 172,393 |
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ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
Page 26
| Unrestricted Restricted Funds Funds 2022 £ £ £ 6 COST OF RAISING FUNDS Costs of generating donations Advertising, printing and web site 4,069 4,069 Costs related to leases and other activities Crypt: utility and insurance costs 23,440 23,440 Holy Trinity Hall running costs 8,001 8,001 Subscriptions and licences 4,158 4,158 Books, media and miscellaneous 9,205 9,205 48,873 0 48,873 7 CLERGY, SERVICES AND PARISH WORK Parish share 85,200 85,200 Director of Music and choir payments 33,754 33,754 Organ tuning and repairs 2,665 2,665 Organ scholar and music fees 2,720 2,720 Assistant Priest costs 40,779 40,779 Pastoral Assistant 6,964 6,964 Clergy and ecclesiastical expenses 11,847 11,847 Verger costs 3,775 3,775 Outreach and local projects 13,560 13,560 201,264 0 201,264 8 OCCUPANCY COSTS Vicar and Assistant Priest flats 7,870 7,870 Church utilities 9,356 9,356 One-off premises costs 0 0 Repairs and maintenance 7,168 7,168 Church roof repair project 0 0 Cleaning and servicing 18,852 18,852 Grounds maintenance 4,190 4,190 47,436 0 47,436 |
2021 £ 2,456 22,596 4,005 1,053 3,923 34,033 85,200 27,837 2,016 2,810 40,866 0 12,517 1,233 7,310 179,789 8,543 7,650 43,166 17,414 11,206 11,465 2,411 101,855 |
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ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
| Unrestricted Restricted Funds Funds £ £ 9 SUPPORT AND GOVERNANCE COSTS Support: Parish Office administration 5,924 0 Insurance 8,334 0 Bank charges 1,802 0 Consultancy and legal fees 6,658 0 Organ restoration(consultancy and accomodation) 0 0 Book keeping and IT support 23,880 0 Depreciation of equipment and furnishings 10,382 3,154 Governance: Accountancy 3,750 0 Independent Examination 1,250 0 61,980 3,154 10 GRANTS OR DONATIONS PAYABLE Charitable giving 5,790 0 5,790 0 11 SALARIES |
2022 £ Total £ 5,924 8,334 1,802 6,658 0 23,880 13,536 3,750 1,250 65,134 5,790 5,790 |
Page 27 2021 £ Total £ 5,300 9,336 2,306 5,070 19,887 20,165 12,880 3,700 1,200 79,844 1,772 1,772 |
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The number of employees in the financial year: 0 (2021: 0)
ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
| 12 FIXED ASSET INVESTMENTS Unrestricted Restricted Movements in the year. Funds Funds £ £ Income Funds Market value at 1st January 2022 643,861 526,610 Purchases at cost, less disposals at market value. 0 0 Net losses / gains on annual valuation -75,793 -61,990 Market value at 31st December 2022 568,068 464,620 Endowment Funds Market value at 1st January 2022 0 222,968 Purchases at cost, less disposals at market value. 0 0 Net losses / gains on annual valuation 0 -26,247 Market value at 31st December 2022 0 196,721 TOTAL FUND VALUES AT MARKET VALUE 568,068 661,341 Note: Unrealised Gains Income Funds Endowment Funds TOTAL per SOFA, p18. |
2022 £ Total £ 1,170,471 0 -137,783 1,032,688 222,968 0 -26,247 196,721 1,229,409 -137,783 -26,247 -164,030 |
Page 28 2021 £ Total £ 1,196,558 -172,564 146,477 1,170,471 195,065 0 27,903 222,968 1,393,439 |
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Page 29
ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
| 13 TANGIBLE FIXED ASSETS Cost or original valuation: At 1 January 2022 Additions At 31 December 2022 Depreciation: At 1 January 2022 Provided in the year At 31 December 2022 Net book value: At 31 December 2022 At 31 December 2021 |
TOTAL £ 1,083,086 4,172 1,087,258 67,912 13,537 81,449 1,005,809 1,015,174 |
Long Leasehold Property £ 525,000 0 525,000 0 0 0 525,000 525,000 |
Church Fixtures and Furnishings £ 558,086 4,172 562,258 67,912 13,537 81,449 480,809 490,174 |
|---|---|---|---|
Revaluation of Leasehold Property
The leasehold property is not depreciated as stated in the accounting policy, note 1d page 19.
| Address and lease details Cost £ Flat 61, Pembroke House Inverness Terrace, W2 6HQ 240,617 84 years unexpired |
Valuation Date 10 Oct 2019 |
Valuation £ 525,000 |
Independent |
|---|---|---|---|
| Valuer Plaza Estates Agency Limited SW3 1NU |
ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
| 14 DEBTORS Other debtors 15 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Creditors and Accruals 16 FUND MOVEMENTS Balance 01/01/2022 Resources Resources Incoming Outgoing £ £ £ GENERAL FUNDS Free Reserves 33,890 338,581 -357,748 Designated 61, Pembroke House 533,153 0 0 Restored Organ (2021) 371,840 0 -7,595 Investments 12 643,861 0 0 RESTRICTED FUNDS Church Renovation. Investments and Deposits 12 575,970 13,818 0 Fixed Assets 42,846 0 -3,154 618,816 2,201,560 352,399 -368,497 |
2022 £ 4,516 4,516 2022 £ 17,316 17,316 Transfers Gains Between Losses Funds £ 0 1,679 0 0 0 4,172 -75,793 0 -61,990 0 0 0 -137,783 5,851 |
Page 30 2021 £ 2,830 2,830 2021 £ 10,867 10,867 Balance 31/12/2022 £ 16,402 533,153 368,417 568,068 1,486,040 527,798 39,692 567,490 2,053,530 |
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General Funds are the net assets and bank deposits available for immediate use at 31 December 2022, £16,402 (2021 33,890) and include designated funds held in order to generate income for the church and provide capital for larger projects. The investments are stated at market value, (note 12), at 31 December 2022. They are a permanent fund. The Church Renovation Fund consists of donations and net assets given for the continuing renovation of St James. The investments in this fund are also held at market value at 31 December 2022, (note 12).
ST JAMES'S CHURCH, PADDINGTON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
Page 31
17 RESTRICTED ENDOWMENT FUNDS
| Ralli Trust Barber Trust |
Balance Transfers Balance 01/01/2022 Resources Resources Gains Between 31/12/2022 Incoming Outgoing Losses Funds £ £ £ £ £ 78,949 2,072 0 -9,293 -2,072 69,656 144,019 3,779 0 -16,954 -3,779 127,065 222,968 5,851 0 -26,247 -5,851 196,721* |
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- The Ralli and Barber Trust endowments allow the income to be spent on the maintenance and upkeep of St James and so the interest is transferred to General Funds.
18 ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Tangible Fixed Assets Investments Net current assets / liabilities |
Unrestricted Funds £ 901,570 568,068 16,402 1,486,040 |
Restricted Funds £ 104,245 464,620 -1,375 567,490 |
Endowment Funds £ 0 196,721 0 196,721 |
TOTAL 2022 £ 1,005,815 1,229,409 15,027 2,250,251 |
TOTAL 2021 £ 1,015,174 1,393,439 15,915 2,424,528 |
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19 TRUSTEES EXPENSES AND RELATED PARTIES.
No material expenses were reimbursed or remuneration paid to any member of the PCC, or any related party to members of the PCC including any businesses controlled by them during this financial year or the previous one.