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2021-12-31-accounts

REGISTERED CHARITY NUMBER: 1134709

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 December 2021

for

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Contents of the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2021

Page
Report of the Trustees 1 to 15
Report of the Independent Auditors 16 to 19
Statement of Financial Activities 20
Balance Sheet 21 to 22
Cash Flow Statement 23
Notes to the Cash Flow Statement 24
Notes to the Financial Statements 25 to 45

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2021. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The primary objective of the PCC is the promotion of the Gospel of our Lord Jesus Christ according to the doctrines and practices of the Church of England. The Trustees confirm that they have complied with their duty of the Charities Act 2011 in having due regard to the Charity Commission's guidance on Public Benefit when planning and reviewing the aims and objectives of St Michael's Church.

Vision

The vision of St Michael's Church is "Living to make a difference" by being "A Christian Heart at the Centre of our Communities". The strategic components of realising that vision are defined as (i) Learning and Growing Together (ii) Sharing Jesus Together and (iii) Serving Together.

We seek to maintain a balance between the Anglican liturgy that is at the heart of all Church of England worship, and the freedom to experiment and change which maintains life and freshness.

Significant activities

In 2021, St Michael's Church fulfilled its charitable objectives by undertaking a number of activities. Like everyone, our activities continued to be significantly impacted by the Coronavirus pandemic and lockdowns. Many of our usual activities continued online, and many we developed and adapted.

Giving

St Michael's Church aims to set aside 10% of the voluntary unrestricted giving, to be given to mission partners in the UK and overseas. New mission partners are reviewed by the Mission Action Group (MAG) in accordance with agreed procedures.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

OBJECTIVES AND ACTIVITIES

Volunteers

There are a number of volunteers at St Michael's Church and they assist in numerous ways. These include:

The PCC would like to offer its grateful thanks to all staff and volunteers who lead and support the activities and ministries of St Michael's Church.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENT AND PERFORMANCE Charitable activities

Church attendance and electoral roll

Attendances based on averages throughout the year, have been:

2017 2018 2019 2020 2021
(Jan-Mar
only)
Adult Attendance 390 402 413 350 185
Child Attendance 91 121 84 74 35
Electoral Roll 381 395 335 340 346

During 2021 the services were both live streamed and in-person, there was a 10-week period where all services were online only attendance.

Baptisms, confirmations, wedding and funerals

The numbers of services and celebrations have been:

2017 2018 2019 2020 2021
Baptisms 12 and under 26 15 9 9 3
Baptisms 12 and over 1 2 1 0 1
Confirmations 2 0 4 0 0
Weddings 5 4 1 2 0
Blessings 1 0 0 0 2
Funerals 13 13 5 3 3 (in church)

St Michael's Church

Licensed ministry continues to play a key role in the parish. There are currently five Licensed Lay Ministers serving at St Michael's Church.

1. Learning and Growing Together

At St Michael's, Life Groups play a crucial part in our learning and growing together. There are a wide variety of groups of varying sizes and expressions. Some groups still meet online, but most offer a mix of live and online meetings and a number of groups have been using the centre to meet as it offers better ventilation and more space. In line with our longterm strategic objectives, we now have four life groups in our new housing communities: one in Cheswick; one in Scholar's Chase; one in Highbrook Park and one based in The Stoke Gifford Retirement Village - an increase of three since the last report. One of these groups has been formed to equip and release new leaders. Also, our 'Young Families' life group has multiplied since the last report - the format of men/dads meeting one week and women/mums the other seems to work well and we are looking to replicate this. We continue to have training sessions for Life Group leaders, and study resources are available online. Leading a Life Group is complex and demanding and so each leader is assigned to a cluster overseen by a clergy member to offer pastoral support. Prayer Triplets and Three Is Enough (TIE) groups are also continuing to thrive and offer greater intimacy and accountability in the lives of the people who choose to be in a triplet and are seeking to go deeper with God.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

We have 2 life groups which are specifically aimed at students and young adults - these groups have both grown in 2021, meaning more young adults are learning and growing in their faith together. Throughout 2021, especially during times of lockdown and restrictions on meeting together, there were many online opportunities for learning and growing together, including an online "weekend away" which was a wonderful time of relationship-strengthening and growth in faith for those who attended. We also hosted online prayer meetings and student-led devotional videos on social media which gave our students and young adults a chance to encourage one another and grow in their leadership.

Youth Ministry

In 2021 we focused on enabling conversation with Families over the dinner table on a Sunday, so have followed the Sunday theme. We also ran a Kintsugi Hope course where 17 young people attended and we explored how we can better take care of our mental wellbeing. During our midweek youth discipleship groups, we have also started to eat together once a month, on every 4th Wednesday we come together eat, have fun and worship together. We have also started to meet back in person this year which is brilliant and have been using the new rooms down the new corridor. Our Minecraft server has been running for over a year now and we have been blown away by the creativity of the young people, we have set them challenges to build things and they have gone above and beyond our expectations every time!

Children's Ministry

Our groups for children age 0-11 on Sunday mornings continue to grow and are well attended. A wonderful group of volunteers continues to support the resourcing and running of our groups. We have Creche for parents and their children aged 0-3, Bubbles for children aged 3-reception school age and Kidz Club for children in school years 1-6. As a team, we felt it was important for our groups to offer a safe and welcoming space for all to attend. Each session encourages the children to hear a story from the Bible and an opportunity to pray together. For the younger children they learn through playing alongside each other and using flags and bubbles to worship. In Kidz Club we have introduced an all-together session, seeing children coming together to worship and share Jesus together. We achieve this through drama, Hula worship, action songs and games. In all our groups on Sundays we have seen children grow in confidence and feel comfortable in their space. Children are getting the opportunity to ask and seek more about Jesus and this is purely led by them in a way that they understand and can take with them into their lives.

2. Sharing Jesus Together

St Michael's Church continues to run the Alpha course. It also runs the Marriage Course, the Pre-Marriage course and Kintsugi Hope Wellbeing Groups. There are regular events at the Beaufort Grange Nursing Home in Cheswick and at the Stoke Gifford Retirement Village, which are also in the parish.

This year we had 20 young people at our Summer Club who heard the gospel from other young leaders who were doing the talks. We had so much fun and had some young people give their lives to Jesus. We cannot wait to improve it for next year! Our outreach youth groups Teen Central and Club have continued throughout the lockdowns. Since starting back in person in September, we have sadly had to limit numbers to 25 each week but have filled that most weeks. We have reintroduced praying together at the end of the session and have seen quite a few prayers answered which has been really encouraging. We also meet inside the whole centre now which means we are contained and is safer from a safeguarding point of view.

The Messy church team felt it was time to make some changes to the way that Messy Church had previously been run as we wanted to place the focus of sharing Jesus together at the centre of our sessions. We introduced a few practical measures, for example; attendees book a space, our session starts with our theme and Bible story, each station reflects the theme and limits the amount of craft that is produced. Our aim was to share Jesus together through action, prayer, socialising and hospitality. Our sessions continue to be well attended and our improvements have been welcomed by all. The team feels that our sessions are calmer and allow for a lot more conversation and sharing. Attendees prefer the focus; moving around the stations in turn gives everyone the chance to explore and share Jesus in a way that meets their needs. We had 60 children at our first ever Summer Club.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

Our baby and toddler groups, Seedlings and Saplings, continue to flourish and we are resuming links with Wallscourt School in the wake of the pandemic. Our new initiative, Forest Church, takes place on the 3rd Sunday of the month in Hermitage Woods. This has a specific focus on reaching families in the New Housing areas and has proved popular, attracting circa 50, for songs, stories and craft around a fire. Songs of Praise continues to take place in the retirement village twice a month, along with a newly established Sunday service once a month.

In times when meeting together was not allowed, we used social media as a way of reaching the student and young adult community, sharing student-led devotionals and encouragements. We hosted online events which people could invite their non-Christian friends to. As restrictions eased towards the end of the year, we were able to host student meals and welcome events for new students. Meals and social events aim to provide opportunities for those who already go to church to invite their friends to, helping those who don't yet believe to feel welcome in a church context. We had a stall at UWE Freshers' Fair, which was run by the Student and Young Adults Worker and current students who go to St Michael's. This provided an opportunity for students to share their faith and it was encouraging to see lots of students respond to this and start coming to church.

The coffee Shop has always been seen as a soft door into the church and will continue to be so. If a customer asks us about our faith we are always willing to share Jesus with them.

There were plenty of Christmas events throughout the New Housing areas, including: carols on the square in the local sports bar in Cheswick; a carol concert in the Retirement Village; and some 'pop up' outdoor events in Scholar's Chase and Highbrook Park.

Although overseas mission trips were not possible in 2021 due to Covid restrictions, the Mission Action Group (MAG) continued to maintain and strengthen relationships with our twelve Mission Partners. This was done by communicating through e-mail, WhatsApp, Zoom and Skype and circulating their newsletters. News was also shared with the Mission Facebook group. In addition, a 2-monthly prayer meeting on Zoom was started in 2021, where church members and Mission Partners could see each other and talk and pray together. The MAG core group undertook annual reviews of each of the Mission Partners to identify their achievements and challenges and to check details such as governance, financial accountability and safeguarding policies. There was a focus on each of the twelve Mission Partners during the year, as the Mission Partner of the Month programme continued. Video updates were shown at Sunday services and posted online; information sheets, including prayer points, were circulated. The mission pages of the St Michael's website were reviewed and updated regularly

3. Serving Together:

St Michael's Church, continues to serve the community, both locally and further afield.

The Old School Rooms Coffee Shop is here to serve the community, not only with food and drink, but also with compassion and friendship. Our prayer is that the light of the Holy Spirit shines upon the Coffee Shop ministry and that we can glorify God's name through our service and that joy will fill this place. The volunteers and staff work as a team to serve all who come into the Coffee Shop.

Living through these Covid-times has brought both challenges and opportunities. We have continued with the pastoral pack initiative we started early on in lockdown, albeit with deliveries on a less frequent basis. This has enabled us to build connections and develop relationships with a whole range of different people, as well as to sow and nurture seeds of faith through the prayer resources that are included. Some of the pastoral buddy relationships that were set up at the start of the pandemic have come to a natural end, but others have developed into friendships, treasured and valued by both parties. So much great pastoral ministry takes place within the natural structures of church life, particularly in Life Groups, but this is also supported by a pastoral team who have a heart and passion for this ministry.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

Our partnership with Kintsugi Hope has continued to grow, and it was a pleasure to welcome Patrick Regan and his team to church in October as we began our 'Bouncing Forwards' sermon series. As well as offering on-line and in-person Kintsugi Hope wellbeing groups to adults both at St Michael's and from further afield, we have also used the adapted material with our Youth and Student & Young Adult groups. There have been some really encouraging stories emerging of how people have found the material beneficial in supporting their mental and emotional well-being, and also in opening up deeper relational opportunities. Last year, a group of nine church members also completed the Mental Health First Aid training. As Covid restrictions have eased, it has been wonderful to see the reintroduction of prayer ministry at each of our Sunday services and celebrations. We are blessed with a very willing and growing team of people who make themselves available, week by week, to offer prayer.

The majority of the groups and session that are run by the Children and family's ministry rely on the goodwill and time of Volunteers. Each group is resourced and run by a number of Volunteers and although remains smaller than in previous years it does have some very dedicated members who have a great passion for serving our children and families in Stoke Gifford. We have individuals and teams who serve in many different ways, for example running Seedlings and Bumps & Babies for new parents in the St Michaels Centre and in the new housing area, 2 parent and toddler groups, Beehive, Saplings on a weekly basis, and 3 Sunday clubs for our 10.30 Celebration (Creche, Bubbles & Kidz Club). Messy Church sees a more diverse team from cooks, tech, washer uppers, crafters, individuals passionate about sharing prayer resources to making a cuppa and having a chat. A small team also serves in the local Primary school delivering Reserve RE each term to children in Years 1-6.

Opportunities to serve have been more difficult whilst church remained online, but we were able to be involved with the UWE Christian Union, providing prayer support and also giving talks at their online meetings. In the summer, many of our students and young adults served at the St Michael's Summer Club for children and young people. We also ran a student Kintsugi Hope Wellbeing group at the end of 2021 which provided an essential opportunity for students to be open and honest about their mental health and wellbeing together. As we have come out of lockdown, we have also been able to serve charities together as a young adults' group, helping out at an Operation Christmas Child warehouse together.

In our New Housing Areas, the team have started to deliver handwritten welcome cards and welcome gifts to residents moving into the area, alongside prayer walking.

This year we have mentored 20 young people in Abbeywood school, helping them to know themselves better and be able to manage their emotions and actions more. We have also had a youth band lead every first Sunday of the month as well as in other bands throughout the month. We attended the Noise with 9 young people and helped to clear a community garden in Lockleaze that had grown over during the lockdowns. We have also held a team night for our youth volunteers to envision them and have some fun together as a team. There have also been times over the past year where the tech for Sundays couldn't have been run without young people serving the church which has been really encouraging to see young people taking up such vital roles within church! We have also been helping out and leading talks at two Christian Unions within the local area where some of our young people attend each week!

It has been a challenging year for the Pre-School & Nursery as we remained open throughout the lockdown period of early 2021 and have continued to have to adapt practice to minimise risk of Covid infection. Inevitably we have had some instances of both children and staff becoming unwell and needing to self-isolate. This has put pressure on finances with some lost fee income (due to short-term closure of areas) and the need to pay for additional staff to maintain the mandatory ratios when regular staff were unable to work. In view of the challenges that have been faced, it is encouraging that the deficit for the year was limited to around £11,000. One other consequence of the pandemic has been that there has been a fundamental shift in the way families choose to access child-care, with many more flexible working options now available to them. This has resulted in a fall in the number of children attending, with a knock-on effect on staffing requirements, which has meant we have had to make some difficult decisions around staffing to ensure our long-term financial sustainability.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

Despite the challenges, the Nursery continues to be a very happy place where both children and staff thrive on being part of a supportive and loving community. There is a very able and committed staff team who are dedicated to helping the children learn and grow, and who work hard to keep parents informed and updated on their children's progress through a Facebook group and Tapestry, the online learning forum, and through twice-yearly reports where children are assessed against the EYFS criteria. A highlight of the year was the leavers party in July where those leaving to start school in September were able to celebrate their time at Nursery and 'graduate', each taking away their Graduation hat and a Children's Bible. The Pre-School & Nursery is a beautiful expression of the St Michael's Church vision of 'Living to make a difference by being a Christian heart at the centre of our communities'.

The three-fold strategic aims of Learning and Growing Together, Sharing Jesus Together and Serving Together - are fundamental precursors of a growing church and are essential to both the life of the church and the wider Heart of the Community project.

Fabric

Church Improvements

A team from the Diocesan Advisory Committee visited during October and met with members of both Steering and Fabric committees to review the progress of our application. Whilst the response was very supportive, it is clear we still have to refine the application. It was decided that this was best handled by our Architect (Quentin Alder) to be presented in early 2022.

Churchyard Improvements

The PCC has requested the Fabric Committee proceed with a formal application enabling the formal closure of the churchyard (this does not affect the memorial garden). Both Parish and South Gloucestershire councils have been notified and whilst the Parish Council did not foresee a problem we await a reply from South Gloucestershire Council. Mike Watkivs and John Peppin are now proceeding to the next stage of the application.

Footpath - members of the Fabric Committee met during November to clear and trim the overgrown edges to the public footpath at the east end of the church with a view to finishing the rest of the path in the spring of 2022. Bells - Mike Peacey contacted the manufacturer to discuss some sound glitches. The supplier agreed there was a fault, and fitted an upgrade free of charge. This involved a complete rebuild of the amplifier system. Drainage - the Quinquennial report identified the need for a ground gutter at the west end of the nave. This involved digging a trench and filling with scalpings. This was completed during the summer.

Quinquennial Report

The vast majority of the required actions have been completed and will continue through 2022-23. Some of the works will fall within the scope of the Church Improvement Project.

Fabric Committee

None of the above would be possible without the help and commitment of the team members. Secretary: John Peppin. Members: John Bailey, Mike Watkivs, Mike Peacey, Paul Smith, Chris Smith. Associates: Marcus Booth, Alan Crofts. Church Architect, Quentin Alder. Thank you all for your support. Martin Allen, Chair, Fabric Committee.

FINANCIAL REVIEW

Financial position

Total income for the year was £1,173,614 (compared with £1,186,658 in 2020). Total expenditure exceeded income by £59,095 (in 2020, expenditure exceeded income by £49,652).

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL REVIEW

Principal funding sources

The Principal funding sources are the generous giving of the congregation, Gift Aid claims, the community support of the Pre-School and Nursery, and the serving of refreshments via the Coffee Shop. The St Michael's Church Centre (SMCC) also provides funding to contribute towards the salaries of staff members who are involved in SMCC work.

The expenditure has satisfied the charitable objectives by supporting the advancement of the Christian faith, extensive children and youth work, elderly people's ministry and a wide range of community services, such as the Coffee Shop, and Pre-School and Nursery. The church did not receive any money from the Diocese of Bristol in 2021 and is a net contributor to the Diocese of Bristol.

Investment policy

St Michael's Church invests funds in excess of short term requirements with the CBF Church of England Deposit Fund and Lloyds Bank Special Reserve accounts. There are no investment conditions which have been placed upon these funds.

Reserves policy

The PCC has sought to build up free reserves to a level which supports the operations of the church during any temporary reduction in income and to enable a controlled rundown of activities, if it became no longer feasible to continue the operations of the church. The Trustees are therefore working towards holding free reserves of approximately three months core expenditure, which equates to £250,000. These reserves will ensure that PCC, Coffee Shop and Pre-school and Nursery staff will continue to be paid throughout their notice period, in the event that St Michael's ceases to be a going concern. It will also ensure that contributions can be made to the Bristol Diocese.

The PCC measures free reserves as the total of the balance of the General fund, Windfall fund and Brimble fund. At the year end, free reserves were £199,373 (2020 - 246,493). Further reserves of £147,173 (2020 - £153,255) were held in the Pre-school and Nursery general fund.

At the year end, total reserves were £411,244 (£470,339 in 2020) of which £23,737 (2020 - £24,403) was held in restricted funds.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL REVIEW

Impact of Covid-19 on St Michael's Church

On 12 March 2020, the World Health Organisation upgraded the Covid-19 outbreak to pandemic status.

The impact of Covid-19 on the activities of St Michael's Church have been outlined in the trustees report above.

In summary, the following steps have been taken to mitigate the threats that Covid-19 may pose to the organisation;

The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the Covid-19 pandemic, the Trustees have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of Covid-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts

Grant making policy

The Trustees aim to set aside 10% of unrestricted giving and continue to work closely with existing mission partners, both in the UK and overseas. New mission partners are reviewed by the Mission Action Group (MAG) in accordance with agreed procedures.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

FUTURE PLANS

In February 2021 The Core Leadership Team held a Vision & Strategy morning, to pray and discern where God might be calling the church to next. A three-year Vision Action Plan for 2021 - 2024 was developed, with a new subtly changed vision "Living to make a difference by being a Christian heart at the centre of our communities" The leadership team believe this better reflects the scope and reach of the church.

In 2022 and beyond, the focus on the strategic vision will be:

Learning & Growing together

Strengthen how we learn to follow Jesus and to grow more like Him through fellowship, prayer and bible study. The leaders at St Michael's sense there is a continued need for Christian teaching, for more focused opportunities for Discipleship, Training and to equip people for works of service. We intend to continue to pray for, train and release more leaders.

To develop a strategy for integrating a multi-ethnic approach to church, with an ever increasing number of different ethnic groups within the Church communities.

Sharing Jesus together

Serving together

Strategic and Specific Objectives for September 2021 - September 2024

Learning & Growing together

Sharing Jesus together

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

Serving together

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The PCC is governed by two pieces of Church of England legislation, called Measures. These are the Parochial Church Council (Powers) Measure 1956) and the Church Representation Rules (contained in Schedule 3 to the Synodical Government Measure 1969 as amended). The charity constitutes an unincorporated charity.

Charity constitution

The PCC is a Body Corporate established by the Church of England and operates under the Parochial Church Council Powers Measure. It meets regularly, plus occasional extra meetings.

Recruitment, appointment, induction and training of new trustees

Members of the PCC (trustees) are appointed ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules or are co-opted onto the PCC due to the role they undertake. All trustees are given the Charity Commission publication CC3 The Essential Trustee - What You Need to Know to assist in the induction process and to allow all new trustees to be aware of their legal responsibilities. The Diocese of Bristol provides PCC (membership, trustee) training and new PCC members are encouraged to attend.

Organisational structure

The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford (Stoke Gifford PCC) serves a district of the ecclesiastical parish of Stoke Gifford within the Kingswood and South Gloucestershire Deanery of the Bristol Diocese of the Church of England.

Decision making

The day-to-day management is carried out by staff teams, committees and action groups who keep the PCC informed of their work. Each group provides a short report for the APCM.

Committees appointed by the PCC are:

There are many other groups which focus on aspects of delivering the strategic aims, These include New Housing Area Team, Alpha, Lifegroups, Pastoral Ministry, Prayer, Worship, Over 65's, Youth and Children's work. Further information on these is provided on our website.

Most church business is conducted at PCC meetings, including the approval of accounts, setting of occasional offices fees and approval of candidates wishing to become lay ministers. Appropriate training, procedures and policies have been adopted in relation to such matters as health and safety, disability discrimination legislation and safeguarding.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Related parties

St Michael's PCC is a related party of St Michael's Church Centre Ltd (SMCC). The SMCC is responsible for the construction and operation of the St Michael's Centre. The centre is the continuing expression of the vision of St Michael's. The SMCC and St Michael's Church PCC have two trustees in common.

In order to deliver the new centre, SMCC has had to take out low-interest loans from individuals, the Bristol Diocese, and CAF Bank. CAF Bank has requested, (and the PCC of St Michael's has supplied) a "letter of comfort" to signify our support of the SMCC operations. At a PCC meeting held on 14th July 2014 it was resolved that: "the Directors of St Michael's Church Centre Limited be supported to undertake a loan of up to £800,000 from CAF Bank (including the initial loan of £150,000) and that the St Michael's PCC should stand behind the Directors of St Michael's Church Centre Limited and offer a "letter of comfort" to CAF Bank in support of that loan, in regard to honouring the capital and interest repayments on that loan if required. The total value of these loans at the year-end was £409,897.

In 2014, the Bristol Diocese provided a loan of £375,000 and an additional loan of £250,000 was provided in 2015. The purpose of these loans was to support the building of the new church centre and this loan has been re-loaned to SMCC for that purpose. The PCC pays interest on these loans and levies the same rate of interest to the SMCC who are the beneficiaries of these loans. Interest payments on those loans will be the liability of SMCC, and will be paid from SMCC funds. The additional loan of £250,000 was fully repaid by the end of May 2020.

At the year end, the total loan outstanding, and was recoverable from SMCC, was £281,250 (2020: £328,125).

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Corporate Governance

Internal controls over all forms of commitment and expenditure continue to be refined to improve effectiveness. Processes are in place to ensure that performance is monitored and that appropriate management information is prepared and reviewed regularly by the PCC.

The systems of internal control are designed to provide reasonable but not absolute assurance against material misstatement or loss. They include:

Risk management

The Trustees have a risk management process. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of managing or mitigating the risks. The Trustees confirm that the major risks to which the charity is exposed, as identified by them, have been reviewed in the period and systems have been established and maintained to manage those risks.

Safeguarding

At St Michael's we are committed to enabling our church community to be a place where all are safe and protected from abuse, where all can be healed and where all can live life to the full. We seek to provide effective safeguarding processes to ensure the safety of young people and adults at risk. All those who work with children, young people or adults at St Michael's undertake a checking process, culminating in a Disclosure & Barring Service (DBS) Check, which is renewed every five years.

In 2021 we appointed Christine Rogers and Rose Taylor to the roles of Parish Safeguarding Officer - Adults at Risk and Parish Safeguarding Officer - Youth and Children. During the year we have used the parish dashboard to review our safeguarding and 'Safer Recruiting' and working practices. This has enabled us to monitor our performance and identify areas where further work is required. The Diocese also has access to this. The current Parish Safeguarding Policy has been reviewed and adopted by the PCC during 2021. The Policy is available in the two church centres and the safeguarding section of the church website. You will see posters around the church estate, highlighting who to talk to about any safeguarding concerns. We also have a contact form on the website with a direct link to the Safeguarding Officers.

The Trustees therefore consider that they have complied with the duty under Section 5 of the Safeguarding and Clergy Discipline Measure 2016 (Duty to have due regard to House of Bishops' guidance on safeguarding children and vulnerable adults).

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1134709

Principal address

St Michael's Centre North Road Stoke Gifford Bristol BS34 8PD

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees S Jones - Rector T Benyon - Associate Vicar J Bradley - Associate Minister V Wicks - Curate M Hepburn - Licensed Lay Minister (ex officio) J Hobbs - Licensed Lay Minister (ex officio) C Perkins - Licensed Lay Minister (ex officio) J Spens - Licensed Lay Minister, Diocesan Synod Representative (ex officio) R Willerton - Licensed Lay Minister (ex officio) I Osborne - Churchwarden M Watkivs - Churchwarden M Roach - Elected member - Treasurer D McCann - Deanery Synod Representative C Murphy - Diocesan Synod Representative (resigned 21 .4.21) L Thomas - Diocesan Synod Representative A Mead - Co-opted (Operations Manager) (co-opted 8.2.21, appointed 21.4.21) I Taylor - Co-opted (Operations Manager) (resigned 21.4.21) E Bakewell - Elected member R Farrell - Elected member (resigned 21 April 2021) P Hallett Allen - Elected member O McGregor - Elected member K Needham - Elected member D Ottaway - Elected member (appointed 21.4.21) M Peacey - Elected member (resigned 21.4.21) S Peacey - Elected member (appointed 21.4.21) L Pott - Elected member (appointed 21.4.21)

Auditors

Haines Watts Bristol Limited Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL

Web address

www.stmichaelsbristol.org

Page 14

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The PCC is responsible for all parish finance, its management and control, including the appointment of a treasurer. While it may delegate some of its duties, this does not remove its legal responsibilities.

Charity law requires the PCC as trustees of the church to prepare a trustees' annual report and financial statements for each financial year that give a true and fair view of the church's financial activities during the year and of its financial position at the end of the year. The PCC is also required to ensure that these are subjected to an annual independent examination or audit and to present these to the APCM in accordance with the Church Representation Rules.

In preparing these financial statements, the PCC is required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the church and enable them to ensure that the financial statements comply with the Charities Act 2011 and applicable accounting standards. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 25 April 2022 and signed on its behalf by:

S Jones – Rector and Chair of Trustees

Page 15

Report of the Independent Auditors to the Trustees of The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford

Opinion

We have audited the financial statements of The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

However, not all future events or conditions can be predicted. The Covid-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charity. The Trustees' view on the impact of Covid-19 is disclosed in the Trustees' Report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 16

Report of the Independent Auditors to the Trustees of The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 17

Report of the Independent Auditors to the Trustees of The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

(i) We obtained an understanding of the legal and regulatory frameworks applicable to the charity and the sector in which it operates. We determined the following laws and regulations of most significance were: Charity SORP 2019 and UK GAAP.

(ii) We obtained an understanding of how the charity complies with those legal and regulatory frameworks by making inquiries of management. We corroborated our enquiries through our review of board minutes and other relevant meeting minutes.

(iii) We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 18

Report of the Independent Auditors to the Trustees of The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Haines Watts Bristol Limited Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL

4 May 2022

Page 19

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Statement of Financial Activities FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Ministry and mission
Coffee Shop
Pre-school and Nursery
Raising funds
3
Investment income
4
Other income
6
Total
EXPENDITURE ON
Raising funds
7
Charitable activities
8
Ministry and mission
Coffee Shop
Pre-school and Nursery
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
24
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
446,226
10,574
56,885
414,676
2,432
202
-
930,995
695
455,333
77,712
450,875
984,615
(53,620)
(4,809)
(58,429)
445,936
**387,507 **		 Restricted
funds
£
51,905
-
-
115,127
-
-
75,587
242,619
-
132,967
-
115,127
248,094
(5,475)
4,809
(666)
24,403
**23,737 **		 2021
Total
funds
£
498,131
10,574
56,885
529,803
2,432
202
75,587
1,173,614
695
588,300
77,712
566,002
1,232,709
(59,095)
-
(59,095)
470,339
411,244		 2020
Total
funds
£
560,357
7,920
41,233
457,245
742
1,587
117,574
1,186,658
372
638,519
73,024
524,395
1,236,310
(49,652)
-
(49,652)
519,991
470,339

The notes form part of these financial statements

Page 20

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Balance Sheet 31 DECEMBER 2021

Unrestricted
funds
Notes
£
CURRENT ASSETS
Stocks
18
841
Debtors: amounts falling due within one year
19
(12,516)
Debtors: amounts falling due after more than one
year
19
281,250
Cash at bank and in hand
457,990
727,565
CREDITORS
Amounts falling due within one year
20
(58,808)
NET CURRENT ASSETS
668,757
TOTAL ASSETS LESS CURRENT
LIABILITIES
668,757
CREDITORS
Amounts falling due after more than one year
21
(281,250)
NET ASSETS
387,507		 Restricted
funds
£
-
22,675
-
1,072
23,747
(10)
23,737
23,737
-
23,737		 2021
Total
funds
£
841
10,159
281,250
459,062
751,312
(58,818)
692,494
692,494
(281,250)
411,244		 2020
Total
funds
£
841
42,191
328,125
488,868
860,025
(61,561)
798,464
798,464
(328,125)
470,339

The notes form part of these financial statements

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Balance Sheet - continued 31 DECEMBER 2021

FUNDS
24
Unrestricted funds
Restricted funds
TOTAL FUNDS		 387,507
23,737
411,244		 445,936
24,403
470,339

The financial statements were approved by the Board of Trustees and authorised for issue on 25 April 2022 and were signed on its behalf by:

S Jones – Rector and Chair of Trustees

I Osborne - Churchwarden

M Watkivs - Churchwarden

The notes form part of these financial statements

Page 22

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Interest received
Net cash provided by investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
16,867
16,867
202
202
(46,875)
(46,875)
(29,806)
488,868
**459,062 **		 2020
£
(29,180)
(29,180)
1,587
1,587
(62,500)
(62,500)
(90,093)
578,961
488,868

The notes form part of these financial statements

Page 23

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2021 2020
£ £
Net expenditure for the reporting period (as per the Statement of
Financial Activities) (59,095) (49,652)
Adjustments for:
Interest received (202) (1,587)
Decrease in debtors 78,907 46,133
Decrease in creditors (2,743) (24,074)
Net cash provided by/(used in) operations **16,867 ** (29,180)
ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.21 Cash flow At 31.12.21
£ £ £
Net cash
Cash at bank and in hand 488,868 (29,806) **459,062 **
488,868 (29,806) **459,062 **
Debt
Debts falling due after 1 year (328,125) 46,875 (281,250)
(328,125) 46,875 (281,250)
Total 160,743 17,069 177,812

2. ANALYSIS OF CHANGES IN NET FUNDS

The notes form part of these financial statements

Page 24

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

Stoke Gifford PCC is an unincorporated charity. The address of the principal office is given in the Trustees report. The nature of the charity's operations and principal activities are detailed in the Trustees report of these financial statements.

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements are prepared in sterling which is the functional currency of the charity and are rounded to the nearest £.

The financial statements have been prepared on a going concern basis after consideration by the trustees of the commitments provided to St Michael's Church Centre Ltd in connection with the funding for the construction of the Church Centre building. As discussed in note 26 to the financial statements, the charity took loans of £375,000 and £250,000 from the Diocese of Bristol, the funds from which have been passed to St Michael's Church Centre Ltd. To date, repayments of £343,750 have been made. In addition, the charity has provided a letter of comfort to CAF Bank recognising the moral obligation the charity has in respect of an £800,000 loan provided to St Michael's Church Centre Ltd in the event of any default. The total value of this loan at the year-end was £270,779.

The trustees have considered the potential impact on the charity in the event of default on either or both of these debts by St Michael's Church Centre Ltd, and believe that the charity would be able to continue to meet its current obligations for at least a period of one year should this happen, due to the continued support of the Diocese of Bristol and the security the freehold property of the new Church Centre would provide. Current cash resources within the charity would enable on-going operation of the charity to continue for the foreseeable future whilst any issues on default of the loans were managed. Although this is only an uncertainty, the trustees have had due regard to the situation, and have decided that no adjustment to the figures, which would be required if the charity was not a going concern, is required.

Impact of Covid-19 on St Michael's Church

As concluded above the accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the Covid-19 pandemic is likely to have a profound impact on the global economy, and may in turn affect the charity. The trustees have considered the impact of this issue on the charity's current and future financial position. The charity holds free reserves of £199,371 with further designated reserves of £188,134. There is total cash balance of £459,062. The trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

Page 25

continued...

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Income

Collections are recognised when received by or on behalf of the PCC. Planned giving receivable under gift aid is recognised only when received. Income tax recoverable on gift aid donations is recognised when the related income is recognised. Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement and the amount due. Rental income from the letting of church premises is recognised when the rental is due. Other income is recognised on a receipts basis. The value of services provided by volunteers has not been included. Coffee Shop income is accounted for on a cash received basis. Pre-school and Nursery income is accounted for on an accrual basis.

Grants

Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable, where all conditions associated with the grant have been met. Where conditions exist which remain unsatisfied, the grant is treated as a liability until the conditions have been substantially met.

Expenditure

Liabilities are recognised when goods or services have been supplied or provided to the charity, and where services relate to the accounting period but are provided subsequently.

Where expenditure does not fall entirely within one cost category, it is apportioned between categories so as to reflect an appropriate division of costs. VAT on expenditure is irrecoverable and costs reported in the financial statements include such VAT.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Consecrated and beneficed property is excluded from the accounts by the Charities Act 2011. No value is placed on movable church furnishings held by the churchwardens on special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property. All expenditure incurred during the year on consecrated or beneficed buildings and movable church furnishings, whether maintenance or improvement, is written off as expenditure in the Statement of Financial Activities.

The PCC policy is to capitalise significant capital expenditure over £2,500.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Leasehold property improvements - 6 years, straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost comprises direct materials and those overheads that have been incurred in bringing the stocks to their present location and condition.

Taxation

The charity is exempt from tax on its charitable activities.

Page 26

continued...

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Debtors

Debtors are measured on initial recognition at settlement amount after any amounts advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

Cash and short term investments

Cash at bank is held to meet short-term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short-term highly liquid investments. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Creditors

The charity has creditors which are measured at settlement amounts.

Financial Instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the charity's contractual obligations are discharged, cancelled, or they expire.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

continued...

Page 27

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charity participates in the Pension Builder Scheme section of Church Workers Pension Fund (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 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.

Donated goods, services and facilities

Donated goods, services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

2. DONATIONS AND LEGACIES

Offerings and donations
Gift aid reclaims
Legacies
Grants receivable
Grants received, included in the above, are as follows:
Listed Places of Worship Scheme
Bristol Diocese - Preschool roof works
HMRC Job Retention Scheme
South Gloucestershire Council - preschool education
Temple Ecclesiastical Charity - student ministry
Bristol Archdeaconry Charity - student ministry
Other		 2021
£
361,170
81,671
-
55,290
498,131
2021
£
983
19,810
17,348
7,149
-
10,000
-
55,290		 2020
£
369,953
84,029
431
105,944
560,357
2020
£
22,354
-
65,090
7,500
5,000
5,000
1,000
105,944

continued...

Page 28

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

3.
RAISING FUNDS
Fundraising events
4.
INVESTMENT INCOME
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Church lettings
Ministry and mission
Wedding and funeral fees
Ministry and mission
Ministries
Ministry and mission
Youth work
Ministry and mission
Parish weekend
Ministry and mission
Coffee Shop takings
Coffee Shop
Grants
Pre-school and Nursery
Pre-school and Nursery fees Pre-school and Nursery
Grants received, included in the above, are as follows:
National Education Grants
SENCO funding (South Glouc. Council)
6.
OTHER INCOME
SMCC contribution to facilities
SMCC contribution to administration		 2021
£
2,432
2021
£
202
2021
£
-
2,978
7,004
592
-
56,885
118,542
411,261
597,262
2021
£
115,127
3,415
118,542
2021
£
37,258
38,329
75,587		 2020
£
742
2020
£
1,587
2020
£
420
2,129
2,988
2,373
10
41,233
158,577
298,668
506,398
2020
£
158,577
-
158,577
2020
£
68,088
49,486
117,574

continued...

Page 29

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

7. RAISING FUNDS

Raising donations and legacies
Fundraising event costs
8.
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see
note 9)
£
Ministry and mission
526,912
Coffee Shop
77,712
Pre-school and Nursery
565,802
1,170,426
9.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Operating leases - photocopier and pre-school rent
Ministry
Youth and student work
Administration- general
Parish share
SMCC Contribution
Property costs
Employment costs - Other
Legal fees
Pre-school - catering
Pre-school - property costs
Pre-school - other
Coffee Shop - direct costs
Coffee Shop - other		 Grant
funding of
activities
(see note
10)
£
55,207
-
200
**55,407 **		 2021
£
695
Support
costs (see
note 11)
£
6,181
-
-
6,181
2021
£
617,091
36,135
14,673
8,142
11,600
150,000
94,595
17,688
75,784
2,183
29,724
53,699
40,268
17,086
1,758
1,170,426		 2020
£
372
Totals
£
588,300
77,712
566,002
1,232,014
2020
£
584,018
34,736
13,730
10,050
13,848
150,000
94,595
34,981
121,225
-
23,323
34,802
33,048
13,525
-
1,161,881

continued...

Page 30

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

10. GRANTS PAYABLE

Ministry and mission
Pre-school and Nursery
The total grants paid to institutions during the year was as follows:
SIITA Nest Children's Home - Uganda
Network Counselling
inHope
Transform Europe Network
Peace and Hope Trust - Nicaragua
Univida - Brazil
CMS - Brazil
Axe Valley Christian Trust
Bridges for Communities
The Brickworks
Hope Church Rhondda
Moldova Mission
Epaphras Trust
North Bristol Food Bank
Salvation Army Australia
Caring at Christmas
Other		 2021
£
55,207
200
55,407
2021
£
11,943
2,640
4,140
5,040
2,640
3,010
3,960
1,500
1,500
2,640
-
650
2,640
500
-
874
1,530
**45,207 **		 2020
£
63,011
3,537
66,548
2020
£
12,173
2,640
4,020
5,040
2,340
2,760
4,460
1,050
1,512
4,450
2,400
8,563
1,800
1,500
1,808
-
4,632
61,148

Grants payable in the previous year have been reanalysed and reallocated between grants to individuals and institution to reflect the nature of the grants.

Individuals experiencing difficulties are assisted through friendship and also in monetary form as appropriate. During the year, grants of £10,200 (2020 - £5,400) were paid to individuals. Where monetary support removes duplication of effort or where the charity does not have sufficient resources to be effective on its own, the charity shares the light and love of God through its monetary support of other churches and charities working within Bristol and the surrounding area.

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

11. SUPPORT COSTS

11. SUPPORT COSTS
Governance
costs
£
Ministry and mission **6,181 **
Support costs, included in the above, are as follows:
Governance costs
2021 2020
Ministry
and Total
mission activities
£ £
Auditors' remuneration 3,880 4,360
Accounts preparation 2,000 3,149
Consultancy **301 ** -
**6,181 ** 7,509
12. AUDITORS' REMUNERATION
2021 2020
£ £
Fees payable to the charity's auditors for the audit of the charity's financial
statements 3,880 4,360
Accounts preparation 2,000 3,149
Total fees payable 5,880 7,509

13. TRUSTEES' REMUNERATION AND BENEFITS

The trustees all give freely of their time and expertise.

During the year , employment benefits were paid to 3 trustees under employment contracts for non-trustee services provided to the PCC. Total employment benefits of £33,442 were paid for their services to the charity.

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

13. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

During the year 4 trustees (2020: 5) had their expenses met by the PCC. Expenses of £2,044 (2020 - £1,970) were paid for travel, subsistence, phone services, hospitality and provision of musical equipment.

14. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:		 2021
£
551,205
40,599
25,287
**617,091 **		 2020
£
517,147
42,642
24,229
584,018
Pre-school and Nursery
Coffee Shop
Church administration and finance
Youth, student and children's ministers
Assistant Youth ministers
Facilities		 2021
22
5
2
3
1
1
**34 **		 2020
22
5
4
3
2
2
38

No employees received emoluments in excess of £60,000.

Staff costs by activity during the year were as follows:

PCC
Pre-school and Nursery
Coffee Shop		 2021
£
153,099
405,124
58,868
617,091		 2020
£
134,150
392,545
57,323

584,018

In addition to the above, other employment costs of £75,587 (2020 - £117,574) were incurred by the PCC for staff who are jointly employed by the PCC and SMCC but working for SMCC. Contributions have been made by SMCC and are included in other income.

Staff costs of £21,209 have been reclassified from youth and intern direct costs in the prior year to reflect the nature of the expenditure.

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

15.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
499,059
Charitable activities
Ministry and mission
7,910
Coffee Shop
41,233
Pre-school and Nursery
298,668
Raising funds
166
Investment income
1,578
Other income
-
Total
848,614
EXPENDITURE ON
Raising funds
176
Charitable activities
Ministry and mission
456,644
Coffee Shop
73,024
Pre-school and Nursery
365,818
Total
895,662
NET INCOME/(EXPENDITURE)
(47,048)
Transfers between funds
(6,532)
Net movement in funds
(53,580)
RECONCILIATION OF FUNDS
Total funds brought forward
499,516
TOTAL FUNDS CARRIED FORWARD
445,936
Restricted
funds
£
61,298
10
-
158,577
576
9
117,574
338,044
196
181,875
-
158,577
340,648
(2,604)
6,532
3,928
20,475
24,403		 Total
funds
£
560,357
7,920
41,233
457,245
742
1,587
117,574
1,186,658
372
638,519
73,024
524,395
1,236,310
(49,652)
-
(49,652)
519,991
470,339

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

16. DONATED GOODS, SERVICES AND FACILITIES

During the year, the church has benefitted from numerous services provided by volunteers covering areas such as children's and youth work, coffee shop, and all areas of ministry. Further services have been provided in the form of assistance with maintenance, finance and administration. It is not possible to measure the financial benefit of such services in the accounts.

During the year, a number of supplies have been donated to further the ministry of the church. It has not been possible to value the goods donated and the trustees do not believe the total value is material to the financial statements.

17. TANGIBLE FIXED ASSETS

COST
At 1 January 2021 and 31 December 2021
DEPRECIATION
At 1 January 2021 and 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020
18.
STOCKS
Stocks
19.
DEBTORS
Amounts falling due within one year:
Gift aid tax refunds
Pre-school fees owing
Other debtors

Page 35

continued...

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

19. DEBTORS - continued

DEBTORS - continued
Amounts falling due after more than one year:
Loan to St Michael's
Church Centre Ltd
Aggregate amounts		 2021
£
281,250
291,409		 2020
£
328,125
370,316

The onward loan of the Diocesan loan to the SMCC of £281,250 is to be repaid by 30th June 2024. See related parties (note 26) for more details of the loan.

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021
£
Social security and other taxes
-
Pension contributions payable
4,041
Other creditors
1,604
National Education Grant received in advance
28,188
Pre-school deposits held
7,300
St Michael's Church Centre Ltd
2,667
Accrued expenses
8,478
Pre-school fees received in advance
6,540
58,818
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021
£
Other loans (see note 22)
281,250		 2020
£
5,090
3,368
6,701
21,538
8,000
1,227
9,098
6,539
61,561
2020
£
328,125

21. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

The onward loan of the Diocesan loan to the SMCC of £281,250 is to be repaid by 30th June 2024. See related parties (note 26) for more details of the loan.

Page 36

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

22. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due between two and five years:
Loan from Diocese of Bristol		 2021
£
281,250		 2020
£
328,125

23. LEASING AGREEMENTS

The following operating lease payments are committed to be paid as follows:

Expiring:
Within one year
Between one and five years		 Land and buildings
2021
2020
£
£
35,000
34,667
116,667
81,667
151,667
116,333		 Other operating leases
2021
2020
£
£
-
1,065
-
-
-
1,065

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

24. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Windfall fund
Brimble fund
Service fund
Missionary Bursaries fund
Fabric fund
Library fund
Vicarage redecoration and music fund
Coffee Shop fund
Pre-school and Nursery fund
Pre-school and Nursery Repairs fund
Pre-school and Nursery Mission Hardship
fund
Restricted funds
Sharing fund
Fabric HOTC grant fund
Rowe Trust fund
Parish Weekend fund
SIITA fund
Children's Ministry
Student Ministry
TOTAL FUNDS		 At 1.1.21
£
47,122
133,467
65,904
1,303
8,070
5,008
5,152
1,443
-
153,255
25,212
-
445,936
6,574
12,375
197
1,501
1
3,755
-
24,403
470,339		 Net
movement
in funds
£
13,980
-
-
64
(35,785)
(11,862)
(238)
(399)
(8,758)
(5,882)
(4,540)
(200)
(53,620)
(1,832)
-
-
(140)
(4,080)
1,307
(730)
(5,475)
**(59,095) **		 Transfers
between
funds
£
(61,100)
-
-
-
40,378
7,155
-
-
8,758
(200)
-
200
(4,809)
-
-
-
-
4,079
-
730
4,809
-		 At
31.12.21
£
2
133,467
65,904
1,367
12,663
301
4,914
1,044
-
147,173
20,672
-
387,507
4,742
12,375
197
1,361
-
5,062
-
23,737
411,244

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

24. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Service fund
Missionary Bursaries fund
Fabric fund
Library fund
Vicarage redecoration and music fund
Coffee Shop fund
Pre-school and Nursery fund
Pre-school and Nursery Repairs fund
Pre-school and Nursery Mission Hardship
fund
Restricted funds
Sharing fund
Parish Weekend fund
SIITA fund
Nursery Education Grants fund
Children's Ministry
SMCC salary contribution
Student Ministry
TOTAL FUNDS		 Incoming
resources
£
420,443
92
-
995
-
-
69,212
420,443
19,810
-
930,995
4,118
(140)
7,863
115,127
30,064
75,587
10,000
242,619
1,173,614		 Resources
expended
£
(406,463)
(28)
(35,785)
(12,857)
(238)
(399)
(77,970)
(426,325)
(24,350)
(200)
(984,615)
(5,950)
-
(11,943)
(115,127)
(28,757)
(75,587)
(10,730)
(248,094)
**(1,232,709) **		 Movement
in funds
£
13,980
64
(35,785)
(11,862)
(238)
(399)
(8,758)
(5,882)
(4,540)
(200)
(53,620)
(1,832)
(140)
(4,080)
-
1,307
-
(730)
(5,475)
**(59,095) **

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

24. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Windfall fund
Brimble fund
Service fund
Missionary Bursaries fund
Fabric fund
Library fund
Vicarage redecoration and music fund
Coffee Shop fund
Pre-school and Nursery fund
Pre-school and Nursery Repairs fund
Pre-school and Nursery Mission Hardship
fund
Restricted funds
Sharing fund
Fabric HOTC grant fund
Rowe Trust fund
Parish Weekend fund
SIITA fund
Children's Ministry
Church Repair fund
Student Ministry
TOTAL FUNDS		 At 1.1.20
£
67,498
133,041
65,473
1,353
11,045
10,018
5,635
1,443
12,391
150,325
39,332
1,962
499,516
4,974
12,000
228
885
6
628
1,754
-
20,475
519,991		 Net
movement
in funds
£
22,795
426
431
(50)
(38,477)
(6,210)
(483)
-
(12,328)
6,839
(16,620)
(3,371)
(47,048)
1,600
375
(31)
616
(4,285)
3,127
(2,106)
(1,900)
(2,604)
(49,652)		 Transfers
between
funds
£
(43,171)
-
-
-
35,502
1,200
-
-
(63)
(3,909)
2,500
1,409
(6,532)
-
-
-
-
4,280
-
352
1,900
6,532
-		 At
31.12.20
£
47,122
133,467
65,904
1,303
8,070
5,008
5,152
1,443
-
153,255
25,212
-
445,936
6,574
12,375
197
1,501
1
3,755
-
-
24,403
470,339

continued...

Page 40

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

24. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Windfall fund
Brimble fund
Service fund
Missionary Bursaries fund
Fabric fund
Library fund
Coffee Shop fund
Pre-school and Nursery fund
Pre-school and Nursery Repairs fund
Pre-school and Nursery Mission Hardship
fund
Restricted funds
Sharing fund
Fabric HOTC grant fund
Rowe Trust fund
Parish Weekend fund
SIITA fund
Nursery Education Grants fund
Children's Ministry
SMCC salary contribution
Church Repair fund
Student Ministry
TOTAL FUNDS		 Incoming
resources
£
406,779
426
431
-
6,774
20,842
-
60,696
352,500
-
166
848,614
6,646
375
5
866
7,888
158,577
32,851
117,574
3,262
10,000
338,044
1,186,658		 Resources
expended
£
(383,984)
-
-
(50)
(45,251)
(27,052)
(483)
(73,024)
(345,661)
(16,620)
(3,537)
(895,662)
(5,046)
-
(36)
(250)
(12,173)
(158,577)
(29,724)
(117,574)
(5,368)
(11,900)
(340,648)
(1,236,310)		 Movement
in funds
£
22,795
426
431
(50)
(38,477)
(6,210)
(483)
(12,328)
6,839
(16,620)
(3,371)
(47,048)
1,600
375
(31)
616
(4,285)
-
3,127
-
(2,106)
(1,900)
(2,604)
(49,652)

General fund (unrestricted)

The fund represents the day to day operation of the Ministry and Mission of St Michael's Church.

During the year, £44,158 (2020 - £39,782) was transferred to the Missionary Bursaries fund in accordance with St Michael's grant making policy of setting aside 10 percent of voluntary planned giving for mission partners both in the UK and overseas. £1,200 (2020 - £1,200) was transferred to the Fabric fund as a provision for future costs.

An additional £5,955 (2020 - £nil) was transferred to the Fabric fund to clear the deficit balance on the fund. £730 (2020 - £1,900) was transferred to the Student Ministry fund to cover the Student Minister's salary costs. £299 (2020 - £nil) was transferred to the SIITA fund to clear the deficit balance on that fund. £352 was transferred to the Church Repair fund in 2020 to cover the repair costs of St Michael's church tower which was completed during the year.

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

24. MOVEMENT IN FUNDS - continued

A transfer of £8,758 was also transferred to the Coffee Shop fund in recognition of underwriting the charitable objectives of the Coffee Shop and to clear the year end negative balance.

Windfall fund (unrestricted)

To provide a "reserve account" as a back-up to cover any deficits or special expenditure on the General Fund for the church.

Brimble fund (unrestricted)

To set aside legacy monies as a back-up to cover any deficits or special expenditure on the General Fund for the church.

Missionary Bursaries fund (designated)

The fund represents amounts set aside for the support of missionaries both at home and abroad. During the year, £44,158 (2020 - £39,782) was transferred from general funds. £3,780 (2020 - £4,280) was transferred to the SIITA fund.

Fabric fund (designated)

Created to set aside a fund for current and future provision for maintaining the fabric of St Michael's Church. During the year, £1,200 (2020 - £1,200) was transferred from the general fund. An additional £5,955 (2020 - £nil) was transferred from the General fund to clear the deficit balance on the fund.

Library fund (designated)

Created to identify and make easy the administration of the income and expenditure associated with buying and selling books and cards for the church.

Vicarage Redecoration and music fund (designated)

Created to set aside a fund for current and future provision for maintaining the fabric of the current vicarage and for musical equipment.

Coffee Shop fund (designated)

The fund represents the operating of the St Michael's Coffee Shop. at the year end, £ 8,758 (2020 - £63) was transferred from the general fund to the Coffee Shop fund to clear the overdrawn fund balance on the Coffee Shop fund.

Pre-school and Nursery fund (designated)

The fund represents the operation of the St Michael's Church Pre-School and Nursery. During the previous year, a transfer of £2,500 was made to the Pre-school and Nursery Repairs fund as a provision for future repairs. An additional transfer of £200 (2020 - £1,409) was made to the Pre-School and Nursery Mission Hardship fund to clear the deficit balance.

Pre-school and Nursery Repairs fund (designated)

A fund to set aside current and future maintenance of the fabric of the old vicarage building and grounds rented from the Diocese. During the previous year, a transfer of £2,500 was made to the Pre-school and Nursery fund as a provision for future repairs.

Sharing fund (restricted)

The fund represents donations given specifically for the purpose of alleviating financial hardship of individuals that are in need.

Fabric HOTC grant fund (restricted)

The fund represents a grant received specifically for the church fabric under the HOTC project remit.

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

24. MOVEMENT IN FUNDS - continued

SMCC salary contribution (restricted)

The fund represents the recharge of salaries to SMCC from the PCC, where employees are jointly employed by the PCC and SMCC, but are on the payroll of the PCC for administrative purposes.

Nursery Education Grants fund (restricted)

The fund represents grants received from South Gloucestershire Council. The level of NEG's received is conditional upon the numbers of eligible children in the Pre-School and Nursery.

Church Repair fund (restricted)

The fund represents grants received specifically for the repairs and renovation of St Michael's church tower. £352 was transferred from the general fund in the previous year to clear the fund balance following the completion of the church tower repairs.

Comparative analysis of net assets between funds, are as follows:

Fund balances as at 31 December 2020
Unrestricted
Restricted
funds
funds
£
£
Current assets
835,622
24,403
Current liabilities
(61,561)
-
Non-current liabilities
(328,125)
-
Total net assets
445,936
24,403		 Total
funds
£
860,025
(61,561)
(328,125)

470,339

25. EMPLOYEE BENEFIT OBLIGATIONS

St Michael's PCC (Stoke Gifford) (PB 2014) 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.

Pension Builder Scheme

The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.

Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, 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. 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.

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

25. EMPLOYEE BENEFIT OBLIGATIONS - continued

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 in the year are the contributions payable 2021 - £23,175 (2020 - £24,229). There were contributions of £4,178 (2020 - £3,368) outstanding at the year-end.

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 Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time. 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, St Michael's PCC (Stoke Gifford) (PB 2014) could become responsible for paying a share of that employer's pension liabilities.

26. RELATED PARTY DISCLOSURES

Stoke Gifford PCC is a related party of St Michael's Church Centre (SMCC). The SMCC is responsible for the construction and operation of the St Michael's Church Centre. The SMCC and Stoke Gifford PCC have two trustees in common.

On 30th June 2014, Stoke Gifford PCC received a loan from the Diocese of Bristol in support of the construction of the St Michael's Church and Community Centre. This loan was at an interest rate of 0.55% over the CCLA base rate (0.1% during the year, increasing to 0.25% on 16th December 2021), and it is required to be repaid by 30th June 2024 as funds allow. On 16th July 2014, these monies were onward loaned to SMCC on the same basis as St Michael's DCC received the loan from the Diocese.

At the year end, the Diocese loan balance outstanding was £281,250 (2020 - £328,125). Interest payments of £4,555 (2020 - £3,755) were paid by SMCC to the Diocese.

It has also been agreed that the Stoke Gifford PCC should stand behind the Directors of St Michael's Church Centre Limited (SMCC) and offer a "letter of comfort" to CAF Bank in support of that loan of £800,000 (£409,897 outstanding at the year end), in regard to honouring the capital and interest repayments on that loan if required. Whilst this letter of comfort does not form a legal guarantee, it does represent the commitment of the PCC to support the charitable purpose of SMCC.

During the year, a contribution of £94,595 (2020 - £94,595) was paid to St Michael's Church Centre Limited from the ordinary fund in recognition of the use of the Church Centre and Old School Rooms for church activities.

Contributions of £37,258 (2020: £49,486) and £38,329 (2020: £68,088) have been received from SMCC in recognition of work carried out by employees who are jointly employed by the PCC and SMCC, for administration/finance and building maintenance of the Church Centre respectively and are included in other income in the financial statements.

continued...

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2021

26. RELATED PARTY DISCLOSURES - continued

Donations from trustees and related parties

The aggregate unrestricted donations received from trustees were £129,316 (2020 - £121,268)

Other related party transactions

There were no further related party transactions. In the prior year, an allowance of £1,000 was paid to M Roach, a trustee, for hosting a student ministry worker.

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Report of the Independent Auditors to the Trustees of The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Haines Watts Bristol Limited Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL Date: .............................................

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The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford

Audit summary report

Year ended 31 December 2021

April 2022

Contents Contents Page
1.
2.
3.
4.
5.
6.		 Introduction
Key reporting matters
Review of the year
Significant risks and audit approach
Risk of fraud and independence
Accounting systems and internal controls
Appendix 1 – Letter of representation
Appendix 2 – Other recommendations		 1
2
4
5
7
8
9
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1. Introduction

The purpose of this document

We are pleased to present a summary of our audit findings for The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford (“the Charity”) financial statements for the Year ended 31 December 2021.

Our audit work is substantially completed, and we take this opportunity to draw your attention to those matters we have noted during the course of the audit so far.

As auditors, we are also required under the International Standard on Auditing 260 (ISA 260) to communicate certain matters arising from the audit of the financial statements to those charged with governance.

Audit approach

We have performed our audit work to date using the audit approach we communicated to you in our audit planning document.

Our audit has also been conducted in accordance with International Standards of Auditing (UK and Ireland) issued by the Auditing Practices Board.

Acknowledgments

We would like to thank Martin, Jackie and the other members of the team for their help and co-operation during our audit fieldwork.

Audit status

The following matters are outstanding at the date of this report:

We expect to be able to complete the audit sign off immediately following the Trustees’ approval of the financial statements.

Disclaimer

This report has been prepared solely for your use and should not be quoted in whole or in part without our prior written consent. No responsibility to any third party is accepted as the report has not been prepared for and is not intended for any other purpose.

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2. Key reporting matters

Significant audit risks

At the planning stage we issued our audit planning letter which highlighted three significant audit risks we had identified. We have summarised our approach and findings and conclusions in section 4.

Unadjusted misstatements detected by us

No unadjusted errors were identified.

Expected modifications to our report

We do not expect to make any modifications to our audit report, other than to draw attention to the uncertainty of COVID-19. However, our responsibilities with regard to the audit report extend up to the date on which it is signed, and we will advise you of any changes to this position if necessary.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK) (“ISAs”). Our engagement letter sets out more fully the respective responsibilities of the Trustees and the auditors. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its members as a body, for our audit work, for the audit report, or for the opinions we form. A statement to this effect will be incorporated within our audit report.

Significant difficulties

We are required to communicate to you if we encounter significant difficulties while performing our work.

We have not experienced any significant difficulties during our audit and we have not identified any significant matters which we consider should be reported to you.

Internal controls

Any control deficiencies identified during the course of our audit have been summarised for you in section 6.

The purpose of our audit is to express an opinion on the financial statements and not to express an opinion of the effectiveness of the internal control environment. Had our work been focused on assessing the internal control environment further deficiencies may have been identified. Any deficiencies we have identified and reported to you should not therefore be regarded as a complete list of all deficiencies which may exist.

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Required communications

Auditing standards require us to communicate further matters to you by exception and to evaluate the adequacy of the communication process between us.

We confirm that there are no further matters to be communicated and that we are satisfied with the adequacy and effectiveness of the communication between us.

Qualitative aspects of accounting practices and financial reporting

During the course of our audit, we consider the qualitative aspect of the financial reporting process, including items that have a significant impact on the relevance, reliability, comparability and materiality of the information provided by the financial statements. We have discussed with you the following observations:

Our audit work to date has not identified any issues in relation to the above matters which we need to bring to your attention.

We are also required to communicate our assessment of the preparedness of management for the audit, and any impact this had on our work.

Readiness for audit

Audit information had been prepared in advance of the audit, and we were provided with comprehensive working papers as required.

Response to queries and information requests throughout fieldwork

Martin and Jackie worked hard to assist us during the audit and responded to our queries.

Availability of staff

All staff were made available to us when we needed to speak to them.

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3. Review of the year

Profit and loss

Income

Overall, income has decreased by 1% (£13k) to £1,174k. There was a significant fall of £42k in recharges of staff costs to SMCC which resulted from the change in staffing requirements during Covid-19 restrictions. Government grants via the HMRC Job Retention Scheme were £48 lower than the previous year also.. This fall was offset by the recovery in preschool and nursery fees and coffee shop income.

Expenses

Despite the fall in SMCC recharges, total expenditure has remained stable across PCC, Coffee Shop and Preschool and Nursery activities in total with £55k being paid to mission partners and other charitable causes. Preschool costs have increased by £42k in line with increased activity while PCC costs have fallen by £50k; mainly in staffing costs and repairs.

Balance sheet

Current assets /liabilities

Net current assets total £692k (2020: £798k) held mainly in cash.

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4. Significant risks and audit approach

Significant audit risks

Our response to the audit risk Conclusion

Revenue recognition

The international Standards on Auditing (Clarified We have considered the accounting policies Our audit work in this area has been successfully ISAs) presume that there is a significant risk in applied by the Charity and have performed completed. We have obtained the audit evidence relation to the completeness and accuracy of testing to ensure these policies have been we require to conclude that revenue recognition is income. correctly applied. not materially misstated and there are no significant matters which need to be reported to Our audit work focused on reviewing the you. systems and procedures the charity has in place, along with substantive analytical review of any fluctuations in income. All key areas of revenue were tested analytically with further substantive analytical work and detailed testing being performed on the higher risk areas of income completeness and cut off.

Management override

Segregation of duties and regular review of We have reviewed the procedures in place to information prepared are among the key prepare the financial information of the Charity. procedures that need to be in place to ensure that the financial statements cannot be unduly We have reviewed a sample of journals to influenced by any one individual. ensure there is no indication of management override.

Our audit work in this area has been successfully completed. We have obtained the audit evidence we require to conclude that no issues regarding management override have arisen which need to be reported to you.

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Validity and accuracy of grant and expenditure We have reviewed the systems and procedures Our audit work in this area has been successfully payments the charity has in place, along with substantive completed. We have obtained the audit evidence The validity of expenditure and the accuracy of analytical review of any fluctuations in we require to conclude that no issues regarding the such transactions being recorded in the Charity’s expenditure. validity and accuracy of grant and expenditure records . payments have arisen which need to be reported to All key areas of expenditure were tested you. analytically with further substantive analytical work and detailed testing being performed on the higher risk areas of expenditure.

During the course of performing our audit, there were no further significant risks identified.

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5. Risk of fraud and independence

Fraud

International Standard on Auditing (UK) 240 “The Auditor’s responsibilities relating to fraud in an audit of financial statements” sets out our responsibilities as auditors for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error.

Our key objectives in connection with this responsibility are:

However, the primary responsibility for the prevention and detection of fraud rests with management and the Board of Trustees. It is important that management place a strong emphasis on fraud prevention by putting in place a structure which deters individuals from committing fraud because of the likelihood of detection and punishment. This involves a commitment to creating a culture of honesty and ethical behaviour. The Board of Trustees also have a responsibility to consider the potential for override of controls or other inappropriate influence over the financial reporting process, such as efforts by management to manage results.

Independence

In relation to the audit of the financial statements of the Charity for the Year ended 31 December 2021, we confirm that there were no relationships between Haines Watts Bristol Limited and the Charity, its Trustees and senior management and its affiliates that we consider may reasonably be thought to bear on the objectivity and independence of the audit engagement lead and audit staff.

We also confirm that we have complied with the requirements of auditing standards (ISAs UK) and UK Ethical Standards in relation to independence and objectivity.

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6. Accounting systems and internal controls

During the course of our audit of the financial statements for the Year ended 31 December 2021, we examined the principle internal controls which the Trustees have established to enable them to ensure, as far as possible, the accuracy and reliability of the Charity’s accounting records and to safeguard the Charity’s assets.

We are writing formally in order to draw your attention to any weaknesses in control which came to our attention during this examination and to suggest ways in which the system could be improved. Our recommendations are detailed in Appendix 2.

There were no weaknesses in current operational controls that were discovered as part of our audit work. Our testing does not place any reliance on the controls that are in place, however we do satisfy ourselves with an understanding by reviewing and assessing the adequacy of the systems and controls in place, when determining our audit approach. We confirm our understanding of the systems by carrying system confirmation tests.

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APPENDIX 1 – Letter of Representation

Haines Watts Bristol Limited Bath House 6-8 Bath Street Bristol BS1 6HL

Dear Sirs

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of charity’s financial statements for the year ended 31 December 2021. These enquiries have included inspection of supporting documentation where appropriate. All representations are made to the best of our knowledge and belief.

General

Internal control and fraud

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Assets and liabilities

Accounting estimates

Legal claims

Laws and regulations

Related parties

Subsequent events

Going concern

Grants and donations

We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware.

Yours faithfully

............................................................................................................................. Signed on behalf of the board of directors of The Parochial Church Council of the Ecclesiastical Parish of Stoke Gifford

Date:

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APPENDIX 2 – Other recommendations

As part of our audit work, where issues or potential issues are identified, we would like to bring these to your attention. These do not form part of the adjusted or unadjusted misstatements but it is our recommendation that these issues are reviewed.

1. We noted that there does not appear to be a risk register held or a regular review by the trustees of the risks the Charity is exposed to.
Identification and management of possible and probable risks is a key part of effective governance of a charity. We suggest the trustees carry
out a regular review of the risks and establish a risk register. The Charity Commission publication CC26 provides guidance of best practice.
2. We note that while the Finance Committee have strong oversight of the overall financial position of the charity, there is limited overview of the
accounting function. We suggest that an annual review of the movements on the respective PCC funds and QuickBooks year end adjustments is
made prior to the figures being provided to us for the preparation of the accounts. We have discussed a possible approach with the accounting
team.
3. We recognise that the charity is currently considered a going concern, and estimated to be able to meet costs until at least 12 months after the
date of signing of the financial statements.
We note however, that the measure of free reserves (General fund, Windfall fund and Brimbles fund combined) is not consistent with the revised
reserves policy balance of £250k. A large proportion of the reserves policy figure relates to Pre-school and Nursery and Coffee Shop staff costs
as explained in the policy note in the Trustees’ Report. However, bringing the Pre-school general reserve into the free reserves’ calculation
implies that the Pre-school funds are freely available for PCC expenditure. We also recognise that the planned refurbishment of the church
building has been deferred but is being considered for later in 2022.
We suggest that what constitutes free reserves is reviewed with the potential release funding from the Windfall and Brimbles funds as the
general fund is showing a nil balance at the year end. We also suggest the PCC consider if the Preschool and Nursery general fund should be
included in this calculation. This is particularly important in progressing with the church refurbishment project as it is our understanding that the
Pre-school funds are not freely available for use in this way.
We also suggest that the cashflow and overallgoingconcernposition is reviewed on a regular basis and documented in the minutes.

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