Nicholas’ Church is an Anglican Church in the Diocese of Southwell and Nottingham and a charity registered in England & Wales number 1134708
This report sets out matters on which we are required to report in order to comply with Charity Commission and Church of England requirements. We encourage you to read it and to bring any questions or comments you may have to the Annual Parochial Church Meeting on Tuesday 23 March 2021.
Contents
| 1. | REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS ...................... 3 |
|---|---|
| 2. | STRUCTURE, GOVERNANCE AND MANAGEMENT .......................................................................................... 4 |
| 3. | PCC REPORT .................................................................................................................................................... 5 |
| 4. | STATEMENT OF RESPONSIBILITIES OF THE PCC .............................................................................................. 7 |
| 5. | OBJECTIVES & ACTIVITIES ............................................................................................................................... 7 |
| 6. | ACHIEVEMENTS AND PERFORMANCE ............................................................................................................ 8 |
| 7. | FINANCIAL REVIEW ....................................................................................................................................... 10 |
| 8. | INDEPENDENT EXAMINERS REPORT ............................................................................................................. 11 |
| 9. | ACCOUNTING POLICIES & DISCLOSURES ...................................................................................................... 13 |
| 10. | STATEMENT OF FINANCIAL ACTIVITIES ......................................................................................................... 15 |
| 11. | BALANCE SHEET ............................................................................................................................................ 16 |
| 12. | NOTES TO THE ACCOUNTS ............................................................................................................................ 17 |
| 13. | 2020 ACCOUNTS IN SUMMARY .................................................................................................................... 22 |
| 14. | NOTTINGHAM SOUTH DEANERY SYNOD 2020 REPORT ............................................................................... 23 |
| 15. | CHURCHWARDENS REPORT 2020 ................................................................................................................. 24 |
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
1. REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS
St Nicholas’ Parochial Church Council, 79 Maid Marian Way, Nottingham, NG1 6AE. The PCC is registered with the Charity Commission under Charity number 1134708.
The members of the PCC are classed as the trustees of the charity and their names are listed below.
Our current accounts are held by
Santander UK plc, Bootle, Merseyside L30 4GB
Charities Aid Foundation, West Malling, Kent, ME19 4TA
Our deposit account is held by
The Church of England Deposit Fund
St Alphage House, 2 Fore Street, London EC2Y 5AQ
As the income for the year ended 31 December 2020 was below £1m, the accounts are not required to be audited. An independent examination of the records was carried out by Chris Nurden.
Rev’d Canon Steve Silvester Rector Rev’d Garreth Frank Curate Rev’d John Blakeley Curate Rev’d Frances Finn Curate Rev’d Dr Ian Paul Associate Minister
Day to day management of the charity is delegated to the Rector in conjunction with the Staff Team. At 31 December 2020, the staff team consisted of the above plus:
| Jon Holt | Operations Manager |
|---|---|
| Mike Kirk | Church Administrator |
| Rich Wood | Children and Families’ Minister |
| Ben Lees | Worship & Creative Media Lead |
| Emily Huggard | Student Minister |
| Sarah Tuffnell | Media & Communications |
| Andrew Lowe | Caretaker |
PCC members 2020/2021 (ex-officio members plus 10 elected lay-representatives and 4 Deanery Synod representatives):
Ex-officio Clergy Rev’d Canon Steve Silvester (Incumbent); Rev’d Garreth Frank; Revd John Blakeley; Rev’d Frances Finn, Rev’d Dr Ian Paul (Associate Minister) Ex-officio Wardens Jonathan Etheridge, Juliet Wright Deanery Synod Reps Cat Cooper, Peter Bates, Marsha Farmer, Sarah Holt (Diocesan Synod) Members until 2021 APCM Sarah Wakefield, Dave Wakefield, Adam Thomas, Martyn Paradise Members until 2022 APCM Andy Day, Karen Pheasant, Sue Ellis Members until 2023 APCM Co-Opted Trevor Peel
(those in italics have reached the end of their term of office)
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
2. STRUCTURE, GOVERNANCE AND MANAGEMENT
Parochial Church Council (Powers) Measure 1956.
In common with all other organisations the PCC is potentially at risk from a number of sources. The church operations manager, together with the Treasurer, are responsible, on behalf of the PCC, for ensuring that these risks are managed so as not to expose the PCC to undue risk and that the PCC is in a position to correctly deal with any situation that may arise. Risks have been assessed and mitigated. Examples of areas that are kept under review include:
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Financial Strategy. Ensuring that we have sufficient reserves to meet expenditure and that income levels are maintained. Regular management accounts are supplied to budget holders and PCC.
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Data and Copyright Protection. Ensuring that we comply with all current regulations.
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Employment Regulations. Ensuring that current regulations are complied with and contracts are honoured.
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Insurance. Insurance levels are reviewed annually.
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Property. Buildings are professionally surveyed every 6 years and a rolling maintenance plan developed.
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Safeguarding. A policy is in force for the protection of children and vulnerable adults in the care of the PCC and its volunteers. Safeguarding Officers are appointed by the PCC and are responsible for ensuring the policy is enforced.
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Internal Financial Controls. Expenditure is reported against budget and monies received. Bank statements are reconciled monthly and two signatures are required on all cheques and the approval of two individuals is required for all electronic payments. Cash is banked promptly. Deposits may only be held with the Central Board of Finance or a UK Clearing Bank.
individual church members responsible for particular areas of the church’s ministry.
The standing committee, consisting of the Rector, the church wardens, the PCC secretary and the Treasurer is a committee required by law. It has the power to transact the business of the PCC between its meetings, subject to any directions given by the council. The standing committee meets between meetings of the PCC.
The PCC sets agreed budgets for each financial year and staff members have authority, with relevant consultation with the Treasurer, to work within these budgets. Any expenditure outside the budget must be brought before PCC for agreement.
The PCC subscribes to the Evangelical Alliance and to the EA Basis of Faith Statement.
Any person on the Electoral Roll of the parish may stand for election to the PCC. There are 10 ‘ordinary’ elected members of the PCC, members who serve for a period of three years. Also, ex-officio members of the PCC are: clergy licensed to the parish, church wardens and members of deanery or diocesan synod. Elections take place at the Annual General Meeting. All candidates must be proposed and seconded by a member of the Electoral Roll and only members of the Roll may vote at the meeting. There is no recruitment method for trustees, as all Roll members are eligible. Upon appointment, new trustees are provided with previous minutes and notes relating to the legal duties and smooth running of the PCC.
The accounting period is 12 months, January – December. The previous accounting period was the 12 months ended 31 December 2019.
The PCC operates through the staff team along with
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
3. PCC REPORT
There were 5 PCC meetings held during 2020 of which one (January) was in person in church and the remainder from May onwards were virtual meetings using the Zoom meetings platform. Virtual meetings were necessary either because in person meetings were forbidden because of Covid 19 restrictions or because it was considered safer to meet virtually. The March 2020 meeting was cancelled at short notice at the start of the first lockdown and the main proposals were presented and voted on by email. The Standing Committee has made urgent decisions and met virtually before each PCC meeting to set the agendas.
The APCM was originally scheduled for March 24th but was postponed until April 21st when the pandemic emerged. The Bishop then gave authorisation that churches should hold their APCM before the end of October rather than April. The delayed St Nics APCM took place by Zoom on 13th October 2020 Major decisions made, issues discussed and reports received at PCC meetings during the year either on a regular basis or as one-off issues in roughly chronological order were as follows
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From June onwards at every meeting, PCC were updated on staff issues, pastoral oversight and operational changes including on-line and streamed services relating to the pandemic and the various government and Cof E rules. Decisions on when and in what manner, services could safely take place and monitoring of associated risk assessments were a part of this process.
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Financial updates and viewing/monitoring of accounts at every meeting, budget planning, and approval of purchases, gifts and income to be diverted to reserve funds and end of year accounts. St Nics decided to give an extra £5000 to deanery to help out parishes struggling to pay their allocation of ministry costs.
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Agreement to create an Extended Standing Committee consisting of existing Standing Committee with 3 extra people elected from within the PCC. The enlarged staff team set strategy and direction. The ESC will be involved in new directions and projects at an early stage and provide a level of accountability and support for staff.. Elections took place in November 2020.
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Purchase of 2 x 85 inch LED screen agreed to replace existing projectors in church. These have become expensive to run because of bulb replacement costs and LED screens will be cost effective. Research to select the most appropriate models continued through the year comparing price/reflection hazard / size and clarity.
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Progress with the 79MMW new build project to develop the site on which the Children’s Centre is located was monitored at each meeting. Steps included clarification of the land title and transfer to Southwell Diocese Board of Finance, archaeological and tree surveys, submission and subsequent granting of planning permission. Building to start within 3 years. The next phase will be detailed technical drawings and preparation of tender documents with specifications. The planned building will support the city centre and be a beacon and is not viewed as only a facility for St Nics. Fundraising to commence in earnest in 2021.
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Policies adopted as follows
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Safeguarding (updated,)
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Use of Church equipment (new)
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Hire of buildings
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Disciplinary
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Grievance
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Investment
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Capability
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Equality and Diversity
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Home working
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Recruitment
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Getting to church policy including environmental consideration and car parking. An action plan for implementation of this policy prepared.
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Safeguarding oversight
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
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List of St Nics groups was compiled for submission to Safeguarding officer of diocese.
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New leaders for 3 St Nics missional communities approved. PCC monitors that all safeguarding checks have been completed before duties are commenced.
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Training monitored and PCC confirmed that a strict view should be adopted concerning volunteer roles for which safeguarding training has been mandated. Training compliance has been made more difficult because in person training has not being available. Only on line training has been offered.
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Submission and scrutiny of Annual report on Safeguarding
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A decision was made to cease taking collections during services but to enable electronic donations to be made by card readers and apps and individual cash donations into a secure box to be positioned near the welcome desk. (This will be implemented when church reopens)
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Staffing committee recommendations
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Appointment of Peter McCrackem as chair of Staffing Committee and Helen McCloughry as new member.
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Daniele and Angelika Bocchetti adopted into the staff team in self supporting capacity to explore ministry , thereafter were accepted for training and became St Nics ordinands.
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Appointment of part time Refugee Worker on fixed one year term using lottery funding. Ellie Winfield was appointed.
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Appointment of a replacement communications officer. Sarah Tuffnell was appointed
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Annual appraisals of paid non clergy staff were conducted with staffing committee representatives
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Jon Holt continued role as Operations manager but on a permanent basis so no longer appropriate to be PCC treasurer.
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Decision made to appoint 3 people on apprentice track as interns for 20/21 in time to secure the best candidates, Church to pay accommodation costs to Young Leadership College of the diocese and appropriate cost were put into budget for 20/21. YLC provides subsistence money. Appointments made for children’s ministry and 2 roles to combine student ministry with office administration.
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The Rector started conversations with members of congregation from Black, Asian and Minority Ethnic (BAME) backgrounds and learnt of their hurt from low level prejudice and hostility and unconscious bias even within the church. As a result he intended to proactively foster leadership of BAME people and to keep the conversation going to create material change. A small group has continued to explore this subject under the leadership of Marsha Farmer.
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St Nics Mission support portfolio was reviewed with David Duncan, the chair or World Mission Committee. He explained the criteria for adoption of home and away mission partners referring to partnerships guidelines, the methods of support for each partner, details of financial support for mission partners and arrangements for tailing off financial support. David’s communication sheets to the congregation had been appreciated.
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PCC received the results of a survey conducted by email in which members of the congregation were asked to comment on the effectiveness of church and on-line provision during the pandemic. St. Nics Missional Communities had grown in importance during lockdown, communication had been good and there was an expectation that an on-line presence would continue post pandemic.
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Decision was made to make substantial gift to St Stephens and St Pauls, Hyson Green following receipt by St Nics of an unexpected gift from the result of sale of a charity owned house, located in their parish in Hyson Green
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A submission was made from PCC to “The Big Conversation “a public consultation concerning how the partially demolished Broadmarsh Centre land should be redeveloped. PCC members contributed ideas in breakout rooms.
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One Deanery Synod report submitted.
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
4. STATEMENT OF RESPONSIBILITIES OF THE PCC
Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently
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make judgements and estimates that are reasonable and prudent
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
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there is no relevant information of which the charity’s independent examiner is unaware; and
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the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant information and to establish that the independent examiner is aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
5. OBJECTIVES & ACTIVITIES
Summary of the main activities undertaken for the public benefit
The PCC has the responsibility of cooperating with the Rector, Steve Silvester, in promoting in the parish of St Nicholas, Nottingham the whole mission of the Church, pastoral, evangelistic, social and ecumenical. We seek to do this through making disciples who can live effectively for Jesus in contemporary society. This is achieved through:
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Responding to Christ, listening to Him through prayer
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Relating to one another – we want to be known for our authentic Christian community
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Reaching others – we want people to have transforming encounters with Jesus
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Resourcing disciples as we train them to
live distinctively and effectively wherever they are
The Church provides three worship and teaching services each Sunday at 9.00am, 10.30am and 6.30pm in its building on Maid Marian Way. Everyone is welcome to any of these services. Worship and teaching for children is specifically available at the 10.30am service. The services are open to everyone regardless of personal background, gender or personal circumstances. We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. Other activities include the monthly healing service open to everyone, Light Night and the open building every Thursday.
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
6. ACHIEVEMENTS AND PERFORMANCE
You would be right to be asking, “Is it time for the annual reports already?” In fact, our last was only 6 months ago. The late date of that report was due to the Church of England deferring the usual deadline of 30th April for APCMs while it worked out how to conduct these meetings online. Now that all seems so terribly ‘pre-COVID’. Now it seems almost normal to hold big meetings online, and we have taken the opportunity to conduct the APCM ahead of Easter and to bid farewell to the most extraordinary twelve months. This inevitably means that this report will be shorter than normal, although it does cover the year April 2020 – April 2021.
In the course of the past year the most challenging, and contentious, issue the PCC has faced concerns whether to continue with in-person services as the epidemic has ebbed and flowed. In the first lockdown of March 2020 this was straightforward: churches were ordered to close. Since then, churches have been allowed to remain open. This has been an affirmation of the generally safe environments that churches have been able to create. However, we also have a responsibility to support public health and not to flaunt our exceptional right to remain open. This has been in tension with our duty of care to people who are particularly isolated, especially refugees and asylum seekers, and to those who struggle to access services online, particularly people with disabilities and those without internet access. As a PCC we have not always found it easy to agree, but debate has always been courteous, and I believe we have got the balance about right.
The quality of on-line service provision at St Nic’s has been very high. We are deeply indebted to a dedicated team whom we do not see in front of the camera: the tech team, Ben Lees editing videos every week, and Jon Holt, Laura Jowett and Jonathan Etheridge who have worked hard to develop the technical capacity required for live on-line services. We have also been greatly blessed to have all the media experience of Frances Finn and the stream of communications from Sarah Tufnell. Sarah to took up her post at a time when she cannot get to know the church in person, and she has dealt admirably with this challenge.
However, this past year has not just been about survival. It has been encouraging to see membership of our St Nic’s Communities continue to rise and we are deeply indebted to all who faithfully lead them. I am grateful to John Blakeley who has overseen pastoral provision during the past year, creating a vital web of connection.
Alpha has continued throughout the year and there has been a steady trickle of people coming to faith and integrated into Communities. The work with refugees and asylum seekers has developed, thanks to Ellie Winfield, Angelika Bocchetti, and those who lead our language school and Welcome Boxes, and all the volunteers. The way the church rose to the challenge of producing around 250 gift boxes before Christmas was outstanding.
The youth and children’s ministries have also adapted well with Rich and Vicky producing and delivering packs to families, and with Adam Thomas, Will and Grace James supporting youth online and meeting with them one to one. Similarly, Emily Huggard and her interns, Kez and Alex, have worked very hard to maintain student ministry and outreach at a time when university education has been so altered and disrupted. Inevitably, some ministries have not translated so well online.
This year has provided us with opportunities to take stock and to develop new things. We have recognised the importance of ‘digital discipleship’ and Daniele Bocchetti has been working to develop a strategy going forward, moving contact into engagement, relationship, community, and faith exploration. We are looking to recruit an intern to work in this area from September.
We continue to respond to the challenge from the Holy Spirit last year around racial justice. It has been encouraging to see the WeR1 (We Are One) Team develop under the leadership of Marsha Farmer, and we look forward to them helping us as a whole church to engage with this vital subject.
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
We congratulate Garreth on his appointment as Associate Missioner as he is seconded half time to oversee the interregnum at St Mary Magdalene and St Leonard, Newark, and we watch with anticipation as God continues to open doors for John and Lynda Blakeley to lead our first St Nic’s church plant/graft in this season of being a resourcing church.
We are all indebted to Martyn and Priscilla Paradise, and the whole 79 MMW Team, for their tireless work. We are now at the stage where we have full planning permission, very exciting architectural plans and a strategy for playing our part in the renewal of this end of the city.
Finally, at this APCM Jonathan stands down from his duties after 6 years as churchwarden. He has served us so well. I have particularly valued his support and sharp insight, his prayerful consistency and hard work, and his chairing of PCC meetings. Thank you, Jonathan.
Steve Silvester
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
7. FINANCIAL REVIEW
The Statement of Financial Activities (SOFA) for the year ended 31 December 2020 shows a net loss before transfers on the Unrestricted General Fund of £20,012 This figure is after depreciation of our assets amounting to £52,584. This is an accounting adjustment we are required to make but does not represent any cash payment. The PCC budgets for and manages the net surplus or deficit prior to depreciation charges, which was therefore a net income of £32,572. In order to build our reserves for future expenditure, £10,000 has been transferred to the Fabric Fund and £10,000 to the Capital Projects Fund. A further £140,000 has also been transferred to the capital Fund and earmarked for expenditure on 79MMW development. This sum represented the proceeds of a one off donation from a local charity.
Our bank deposit account and the cash at bank balances at 31 December 2020 amounted to £454,440. Of this £351,119 relates to funds restricted to building or other projects, leaving £102,321 on unrestricted funds. Practically all the income is derived from direct giving by church members. The summary on page 16 (note 6) shows how expenditure has taken place in supporting our objectives.
FINANCIAL RESERVES: The PCC has agreed that we need to retain the equivalent of three months expenditure in unrestricted readily available reserves in order to meet any unexpected liabilities that may arise. Based on the accounts for 2020 this would amount to £100,548. At 31 December 2020 net current assets on unrestricted funds amounted to £127,508, including £31,243 of outstanding tax recoverable on gift aid donations.
The policy of the PCC in respect of reserves is that cash resources should be such that all restricted and designated funds are available in cash or deposits, together with the equivalent to 3 months of expenditure in unrestricted funds. This takes into account that in emergencies the PCC have assets against which borrowings could be secured
pending an appeal to the congregation for funds to support the church’s mission. It is further recognised that while the payment of Parish Share remains a priority, in an emergency payment could be deferred in consultation with the diocese.
In addition to the unrestricted general reserves, the PCC has the following designated reserves:
Fabric reserve
At 31 December 2020 this amounted to £56,925.
In view of the age of the building from which the church operates, repairs can be costly, in particular cyclical repairs such as redecoration that arise from time to time. The PCC allocate an amount to this fund each year to accumulate a reserve to avoid the need for additional fundraising at the time repairs are required.
Capital projects fund
At 31 December 2020 this amounted to £221,613. From time to time significant expenditure is required to update capital items that are essential to the running of the church, for example the audio visual systems. The PCC allocate an amount to this fund each year to accumulate a reserve to avoid the need for additional fundraising at the time expenditure is required.
Restricted funds held represent monies received for specific purposes prescribed by the donor or collections taken for specific purposes of which the donor was aware at the time they made their gift which have not yet been paid over to the ultimate beneficiary.
Signed on behalf of the PCC
Jonathan Etheridge (Church Warden) 1[st] March 2021
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
8. INDEPENDENT EXAMINERS REPORT
Section A Independent Examiners Report
Report to the The Parochial Church Council of the Ecclesiastical Parish of St Nicholas’, Trustees/members of Nottingham
On accounts for the year Charity Number 31 December 2020 1134708 ended Set out on pages 13-21 Responsibilities and basis I report to the trustees on my examination of the accounts of the above of the report charity (“the Trust”) for the year ended 31/12/2020.
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s The charity’s gross income exceeded £250,000 and I am qualified to statement undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
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the accounting records were not kept in accordance with section 130 of the Charities Act; or
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the accounts did not accord with the accounting records; or
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the accounts did 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
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
| Signed Name Relevant professional qualification(s) or body Address |
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. Date 01/03/2021 |
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. Date 01/03/2021 |
|---|---|---|
| 01/03/2021 | ||
| Chris Nurden | ||
| Institute of Chartered Accountants in England & Wales | ||
| 26 The Parks Minehead Somerset TA24 8BT |
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
9. ACCOUNTING POLICIES & DISCLOSURES
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these accounts. The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK & Republic of Ireland (FRS 102) issued on 16 July 2014 and with the Financial Reporting applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011 and the Church Accounting Regulations 2006. Going Concern: The accounts have been prepared under the basis of the charity being an ongoing concern.
The Unrestricted General Fund is available for use at the discretion of the PCC to further the general objectives of the church. Designated Funds are unrestricted funds set aside by the PCC for specific future purposes or projects. Restricted Funds are funds that can only be used for particular purposes within the objects of the church. The aim and use of each fund is set out in the notes to the Financial Statements.
Donated income without conditions attached, including that gifted under Gift Aid, is taken into account when received by the Charity. Income Tax recoverable on gift aid accounts is recognised when the gift aid income is received. Any amount of tax not yet claimed from HM Revenue & Customs is shown within the Debtors list. Funds raised for events are accounted for gross. Income from building hire is recognised when rental is due.
Expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation. All costs have been directly attributable to one of the headings used in the SOFA. The church is not registered for VAT and accordingly expenditure is shown gross of VAT.
Expenditure that is directly attributable to meeting charitable objectives is included in costs of activities in furtherance of the charity’s
objects.
Under the provisions of FRS 15, land and buildings are valued at historical cost and no depreciation is charged against them. Buildings are maintained to such a standard that their estimated residual value is not less than their net book value at any given time. Costs incurred in keeping buildings in a fit and useful condition are written off as incurred. Consecrated and benefice property is excluded from the accounts by nos. 10 (2), (3), (4) of the Charities Act 2011. Enhancements of buildings paid for by the PCC such as the church re-ordering carried out during 2011 are capitalised and written off over a period of 20 years.
| Fixed Assets have been capitalised at cost and the depreciation is calculated so as to write off the cost of the fixed asset on the following basis: Building Enhancements 5% Fixtures and Fittings 10% Other Equipment 25% Computers 33% |
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Amounts owing to the PCC at 31 December in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove un-collectable. Short-term deposits include cash held on deposit either with the Central Board of Finance or Bank.
Pension contributions are paid to the Pension Builder Classic section of the Church Workers Pension Fund, a defined benefit scheme, based on the level of contributions paid on behalf of each employee. Further details of the pension fund are contained in the notes to the accounts. Contributions are recognised as resources expended at the time the salary cost to which they relate is incurred.
Grants for the support of mission partners are accounted for on the basis of support agreed by the PCC that relates to the financial year. The church supports various mission partners and organisations. Where a particular mission
St Nic’s Nottingham, Financial & Trustee Report for the year 2020
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partner has been supported by the church for a number of years, strict compliance with the Charities’ Statement of Recommended Practice (SORP) may regard some arrangements as constituting constructive obligations such that future years’ support is accounted for in these accounts as a liability. Whilst the support has no final end date, the PCC assess mission partner funding on an annual basis and are confident that the mission partners would not view their
support as an open-ended obligation on the part of the church.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
10. STATEMENT OF FINANCIAL ACTIVITIES
Statement of Financial Activities
Year ended 31 December 2020
| 2020 | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| General | General | |||||
| Unrestricted | Designated | |||||
| Note | Funds | Funds | Restricted Funds | Total Funds | Total Funds | |
| Income & endowments from: | ||||||
| Donations & legacies | 1,9 | 374,262 | - | 27,448 | 401,710 | 406,496 |
| Charitable activities | 2,9 | 6,795 | - | 30,203 | 36,998 | 38,166 |
| Investments | 3 | 1,121 | - | - | 1,121 | 1,623 |
| Total income | 382,178 | - | 57,651 | 439,829 | 446,285 | |
| Expenditure on: | ||||||
| Charitable activities | 5 | |||||
| Wider Church/Parish Share | 127,443 | - | - | 127,443 | 127,455 | |
| Teaching & Pastoral | 76,377 | - | 77,915 | 154,292 | 128,783 | |
| Youth & Children | 94,328 | - | - | 94,328 | 95,742 | |
| Mission & outreach UK | 27,076 | - | 5,238 | 32,314 | 30,939 | |
| Mission & outreach Oversees | 33,580 | - | 527 | 34,107 | 33,006 | |
| Evangelism & Outreach | 43,386 | - | - | 43,386 | 43,228 | |
| Total expenditure | 402,190 | - | 83,680 | 485,870 | 459,153 | |
| Net income/(expenditure) | (20,012) | - | (26,029) | (46,041) | (12,868) | |
| Extraordinary income | 4 | 184,000 | - | - | 184,000 | - |
| Extraordinary expenditure | 4 | (40,000) | - | - | (40,000) | - |
| Transfers to Designated/Restricted Funds | (160,000) | 160,000 | - | - | - | |
| Net Movement in funds | (36,012) | 160,000 | (26,029) | 97,959 | (12,868) | |
| Reconciliation of Funds | ||||||
| Total Funds brought forward | 763,248 | 128,538 | 99,565 | 991,351 | 1,004,219 | |
| Total Funds carried forward | 727,236 | 288,538 | 73,536 | 1,089,310 | 991,351 |
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
11. BALANCE SHEET
Balance Sheet
at 31 December 2020
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Tangible Fixed Assets | 11 | 613,761 | 663,119 | ||
| Current Assets | |||||
| Debtors | 13 | 31,677 | 33,950 | ||
| Prepayments | 14 | 5,883 | 1,171 | ||
| Deposit Account | 361,717 | 216,292 | |||
| Cash at bank and in hand | 92,723 | 82,807 | |||
| 492,000 | 334,220 | ||||
| Current Liabilities | |||||
| Amounts falling due within one year | 15,16 | (16,451) | (5,988) | ||
| Net current Assets | 475,549 | 328,232 | |||
| Total Net Assets | 1,089,310 | 991,351 | |||
| The Funds of the Charity | |||||
| Unrestricted General Funds | 12 | 727,236 | 763,248 | ||
| Designated General Funds | 9 | 288,538 | 128,538 | ||
| Restricted Funds | 10 | 73,536 | 99,565 | ||
| 1,089,310 | 991,351 |
Approved by the Church Council on 1st March 2021 and signed on its behalf by
(Church Warden)
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
12. NOTES TO THE ACCOUNTS
| 1 Donations Gift Aid Income Tax recoverable Other planned giving Collections Sundry Donations 2 Charitable activities Sundry Sales Building Hire Fees Events Grants received 3 Income from investments Bank Interest |
2020 2019 Unrestricted Designated Restricted Total Total 253,825 - 3,338 257,163 267,627 64,804 - 834 65,638 68,622 52,127 - - 52,127 41,599 1,033 - 3,276 4,309 12,768 2,473 - 20,000 22,473 15,880 2020 |
|---|---|
| 374,262 - 27,448 401,710 406,496 |
|
| 127 - - 127 352 3,451 - - 3,451 5,810 3,202 - - 3,202 2,786 15 - 14,234 14,249 24,517 - - 15,969 15,969 4,701 |
|
| 6,795 - 30,203 36,998 38,166 |
|
| 1,121 - - 1,121 1,623 |
|
| 1,121 - - 1,121 1,623 |
4 Extraordinary income
During the year the PCC received an unexpected donation of £184,000 following the closure of a local Christian Charity The PCC agreed that £40,000 should be donated to another Christian Church in Nottingham as a gift offering and £140,000 allocated to the Capital Projects Fund
5 Charitable Activities
| Charitable Activities | |
|---|---|
| Wider Church/Parish Share Teaching & Pastoral Youth & Children Mission & outreach UK Mission & outreach Overseas Evangelism & Social Concern |
Activities undertaken directly Grant funding of activities Support Costs 2020 Total 2019 Total 122,840 - 4,603 127,443 127,455 7,345 - 69,032 76,377 85,808 2,286 - 92,042 94,328 95,742 - 8,668 18,408 27,076 28,080 - 22,075 11,505 33,580 30,976 253 8,617 34,516 43,386 43,228 |
| 132,724 39,360 230,106 402,190 411,289 |
There were no related party transactions
6 Support Costs
The allocation of support costs has been based on an estimated proportion of staff time costs and the expenditure related to their activity. Wider church 2%, Teaching and Pastoral 30%, Youth & Children 40%, UK Mission 8%, Overseas Mission 5%, Evangelism 15%
| Staffing Building Insurance Administration Depreciation |
Wider Church Teaching & Pastoral Youth & Children Mission UK Mission overseas Evangelism Total 2,884 43,254 57,673 11,534 7,209 21,627 144,181 371 5,566 7,421 1,484 928 2,783 18,553 124 1,861 2,481 496 310 930 6,202 172 2,576 3,434 687 429 1,288 8,586 1,052 15,775 21,033 4,207 2,629 7,888 52,584 |
|---|---|
| 4,603 69,032 92,042 18,408 11,505 34,516 230,106 |
Administration support costs includes £1,000 payable to the Independent Examiner and £865 paid under an operating lease
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
| 7 Staffing Costs Pastoral Salaries Admin & Support Salaries Pastoral Expenses Admin & Support Expenses Pastoral Pension Admin & Support Pension HMRC Refund/Rebate/Furlough |
2020 2019 Unrestricted Restricted Total Total 65,639 2,444 68,083 64,408 67,337 - 67,337 60,753 5,651 5,440 11,091 6,909 909 - 909 666 6,251 244 6,495 5,937 6,340 - 6,340 5,694 (7,946) - (7,946) (3,000) 2020 |
|---|---|
| 144,181 8,128 152,309 141,367 |
During the year the PCC employed a student minister, a children's minister, a worship director, a refugee worker, a communications officer, an operations manager, an administrator and a cleaner, none of whom earned £60,000 or more. One member of the PCC (J Holt) was employed by the PCC as Operations Manager and received remuneration amounting to £26,368 and a sum of £2,636 was also paid into the staff pension scheme on his behalf. Clergy expenses totalled £1,163
No expenses have been paid to PCC members in respect of their role as Trustees
8 Grants Payable
| 8 Grants Payable | |
|---|---|
| Mission & Outreach UK Mission & Outreach Overseas Evangelism & Social Care 9 Designated Funds Fabric Reserve Capital Projects Fund Legacy Fund |
Institutions Individuals 2020 Total 2019 Total 2,168 6,500 8,668 9,480 3,375 18,700 22,075 19,350 8,617 - 8,617 6,657 14,160 25,200 39,360 35,487 Opening Balance Income Expense Transfers Closing Balance 46,925 - - 10,000 56,925 71,613 - - 150,000 221,613 10,000 - - - 10,000 |
| 128,538 - - 160,000 288,538 |
The Fabric and Capital Project Funds are designated by the PCC to meet future expenditures in respect of repairs and maintenance and other larger projects. In 2020 £160,000 net was transferred into designated funds from General with £140,000 of that earmarked for the 79MMW development
The Legacy Fund represents monies given to the PCC for future use as yet undefined
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
10 Restricted Funds
| Expended Funds Church Centre Available Funds Mission Partners Events Gifts Collections Hall Fund House Trust St Nicholas Purse Language School Church Weekend Church Weekend Bursary Refugee Worker Other Total Restricted Funds |
Opening Balance Income Expense Transfers Closing Balance 14,033 - - - 14,033 |
|---|---|
| 14,033 - - - 14,033 |
|
| 1,935 468 527 - 1,876 2,750 1,979 1,453 - 3,276 92 - 82 - 10 6,831 2,651 2,338 (1,000) 6,144 34,457 20,250 34,773 - 19,934 3,771 - - - 3,771 6,383 4,079 4,352 - 6,110 1,263 - 33 - 1,230 27,366 12,255 31,810 1,126 8,937 577 636 87 (1,126) - - 10,000 2,785 1,000 8,215 107 5,333 5,440 - - |
|
| 85,532 57,651 83,680 - 59,503 |
|
| 99,565 57,651 83,680 - 73,536 |
The Church Centre Fund represents capital invested in the Church Centre
The Hall Fund represents donations received for the proposed new Church Hall.
St Nicholas purse is a fund used to support people in financial difficulty at the discretion of the Rector and the Standing Committee.
The Language School represents donations received for the weekly Language School now running in St Nic's The House Fund represents donations received for a new project to provide suitable housing for young asylum seekers
The Restricted Collection Fund represents donations given via St Nic's to be used for specified purposes.
The Missionary Fund arises from donations given via St Nic's to be used for specified missionary organisations or individuals The church weekend fund represents monies allocated by the PCC towards the costs of the next Church Weekend The Bursary Fund represents donations received to subsidise individuals wishing to attend the next church weekend The Events Fund is used for income and expenditure relating to specific events.
The Refugee Worker fund represents grants received for employment of a Refugee Worker
Restricted Funds 2019 for comparison
| Expended Funds Church Centre Available Funds Mission Partners Events Gifts Collections Hall Fund House Trust St Nicholas Purse Language School Church Weekend Church Weekend Bursary Other Total Restricted Funds |
Opening Balance Income Expense Transfers Closing Balance 14,033 - - - 14,033 |
|---|---|
| 14,033 - - - 14,033 |
|
| 2,998 967 2,030 - 1,935 7,127 12,921 13,408 (3,890) 2,750 369 487 764 - 92 6,785 621 575 - 6,831 50,230 2,000 17,773 - 34,457 5,000 - 1,229 - 3,771 4,452 2,949 4,908 3,890 6,383 1,554 - 291 - 1,263 13,041 7,151 2,826 10,000 27,366 43 534 - - 577 - 4,167 4,060 - 107 |
|
| 91,599 31,797 47,864 10,000 85,532 |
|
| 105,632 31,797 47,864 10,000 99,565 |
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
11 Fixed Assets for use by the PCC
| Actual Cost at 1st January 2020 Additions Disposals Cost at 31st December 2020 Depreciation Charge at 1st Jan Depreciation Charge for year Depreciation deducted on disposals Accumulated Depreciation Net Book Value 31 December 2020 Net Book Value 31 December 2019 Analysis of Net Assets by Fund Fixed Assets for Church use Current Assets Current Liabilities Fund Balance |
Freehold Land & Buildings Fixtures & Fittings Church Improvements Total 107,934 71,400 874,963 1,054,297 - 3,226 - 3,226 - (6,126) - (6,126) |
|---|---|
| 107,934 68,500 874,963 1,051,397 | |
| - (53,578) (337,600) (391,178) - (5,740) (46,844) (52,584) - 6,126 - 6,126 |
|
| -(53,192) (384,444) (437,636) | |
| 107,934 15,308 490,519 613,761 107,934 17,822 537,363 663,119 Unrestricted Designated Restricted Total 599,728 - 14,033 613,761 139,881 288,538 63,581 492,000 (12,373) - (4,078) (16,451) |
|
| 727,236 288,538 73,536 1,089,310 |
12 Analysis of Net Assets by Fund
| 13 Sundry Debtors Gift Aid Tax GA Tax - restricted funds Sundry items 14 Prepayments Insurance - Centre Rates Copier CCLI Misc Intern Housing 15 Sundry Creditors Gas & Elec Sundry Service fees Payroll 16 Accruals Independent examination Fee Legal fees - 79 MMW Parish Share |
2020 2019 31,243 33,817 342 - 92 133 |
|---|---|
| 31,677 33,950 |
|
| 373 303 250 229 239 239 214 173 127 227 4,680 - |
|
| 5,883 1,171 |
|
| 2,000 2,412 337 708 549 402 3,487 1,466 |
|
| 6,373 4,988 |
|
| 1,000 1,000 4,078 - 5,000 - |
|
| 10,078 1,000 |
17 Commitments under operating leases
At 31 December 2020 the PCC has remaining commitments under non-cancellable operating leases as set out below:
Operating leases which expire: 2020 2019 December 2021 835 1,670
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
18. Church Workers Pension Fund
DECEMBER 2020 YEAR END
The Parochial Church Council of St Nicholas' (Nottingham) participates in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.
The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.
The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.
Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending upon the investment returns and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers. This means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable (2020 £12,835, 2019: £11,631).
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2016. A valuation as at 31 December 2019 was under way as at 31 December 2020.
For the Pension Builder Classic section, the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time.
For the Pension Builder 2014 section, the valuation revealed a surplus of £1.8m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, St Nicholas PCC could become responsible for paying a share of that employer’s pension liabilities.
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
13. 2020 ACCOUNTS IN SUMMARY
Using the above format (which we have to!) the accounts can be difficult to understand so here is a simple summary of the income and expenditure on the general fund
| Income Donations Tax reclaimed Other Total Expenditure Mission grants/Evangelism Parish share Staffing Buliding related Administration Ministry Total Surplus before depreciation Depreciation Surplus/(Deficit) after depreciation Fixed asset costs incurred Cash in the bank Which is made up of: Designated funds Restricted funds General funds Jonny and Ellie Staton working with Agape UK Liz Babbs working as a writer and speaker Ruth Radley working with CMS in Birmingham Children's Hospital Fusion & Student CUs Other Dave and Nikki working in North Africa Pauline Walker Pastor Adama in Markoye, Burkino Faso Support for developing ministry in Oudalan, Burkino Faso Support for Ian & Heather Morris Support for James Berry with OM Open Doors Malt Cross (Street Pastors) Nottingham Citizens Social Concern Emmanuel House Grants made for UK mission Grants made for World mission Grants made for Evangelism & Social Care |
2020 2019 309,458 330,850 64,804 68,622 7,916 15,016 382,178 414,488 39,360 35,487 122,840 122,804 144,181 141,367 24,755 27,748 8,586 9,526 9,884 20,482 349,606 357,414 32,572 57,074 52,584 53,875 (20,012) 3,199 3,226 7,682 454,440 299,099 288,538 128,538 63,581 85,532 102,321 85,029 1,000 1,500 4,000 4,000 1,500 1,980 1,368 1,200 800 800 8,668 9,480 11,000 12,300 5,200 4,200 500 1,150 3,000 1,500 1,000 - 1,000 - 375 200 22,075 19,350 1,000 1,000 2,300 2,372 1,600 1,600 3,717 1,686 8,617 6,658 39,360 35,488 |
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
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14. NOTTINGHAM SOUTH DEANERY SYNOD 2020 REPORT
This year we have said goodbye to Revd Jonathan Smithurst (Attenborough), Revd Claire Goode (Nottingham St Andrew’s) and Revd Dr Michele Hampson (Lenton). We have welcomed curates Revd Jo Lees-Robinson (Trinity Church), Revd Francis Finn (St. Nic’s) and Revd Grant Walton (St Mary’s in the Lace Market) to our Deanery. We were also pleased to congratulate Revd Hannah Hall and her husband, Will, on the birth of their daughter, Katelyn, in August.
The Deanery Leadership Team has continued to meet during the year to plan Synod and to discuss ways to support parishes in the Deanery. Revd Tom Gillum from St Mary’s in the Lace Market has also joined the Team.
Due to the unprecedented circumstances of 2020, we only held one Deanery Synod. We met together at St Barnabas, Lenton Abbey on 12th February to thank those who had served over the past three years and to reflect on all God had done in and around our Deanery. In particular people shared about City Prayer, Trinity Church, the Beeston Workplace Chaplaincy, Nottingham Citizens and we were challenged to become involved with the Green Festival in the autumn.
The Deanery has again paid a large percentage of its giving for ministry allocation (89.2% in 2020, compared to 96.9% in 2019). Every parish is to be thanked for their faithfulness in paying for the ministry received in this deanery, particularly in these difficult times.
We are looking forward to 2021 and hope to have the opportunity to meet again in person.
Kirsty Cowley Deanery Administrator
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020
15. CHURCHWARDENS REPORT 2020
As we reflected on the past year as Church Wardens, we recognised how blessed we are as a church and we want to express our gratitude to God, to our fantastic staff team and of course to the often unsung heroes of St Nic’s who help glue our community together, they have done so much despite the constraints of the past year.
Instead of reporting on a year of retreat or hibernation we are delighted to be reporting on a vibrant church that has continued to meet, albeit in new ways, and has continued to move forward. Our ability to more than weather the storm of Covid is thanks in a large part to the foundations we have laid down. Some of these are practical areas including finances and technology but the key has been in having the right people with the right gifts in place at the right time to lead us as we rapidly pivoted to on-line worship gatherings. Surely God was helping equip and prepare us even though we didn’t realise it.
As we look forward to a time when we can once again meet in the church building, we are happy to report that that the fabric is in fine condition with no significant issues over the past year. The PCC recently approved new investment to upgrade the audio visual equipment in church and this will allow us to integrate those worshipping with us on-line with those in the building.
As ever, the ‘legal bit’, we can confirm that the terrier and inventory are in good order.
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St Nic’s Nottingham, Financial & Trustee Report for the year 2020