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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 1134709

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 December 2022

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 2022

Page
Report of the Trustees 1 to 14
Report of the Independent Auditors 15 to 18
Statement of Financial Activities 19
Balance Sheet 20 to 21
Cash Flow Statement 22
Notes to the Cash Flow Statement 23
Notes to the Financial Statements 24 to 44

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2022. 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 2022, St Michael's Church fulfilled its charitable objectives by undertaking a number of activities. Activities previously restricted by the Coronavirus pandemic and lockdowns began to restart and expand. Many of the activities we developed and adapted during the pandemic continued;

Some of these areas of ministry are expanded upon in this report.

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 2022

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 2022

ACHIEVEMENT AND PERFORMANCE Charitable activities

Church attendance and electoral roll

Attendances based on averages throughout the year, have been:

2018 2019 2020 2021 2022
(Jan-Mar only)
Adult Attendance 402 413 350 185 361
Child Attendance 121 84 74 35 85
Electoral Roll 395 335 340 346 361

During 2022 the services were in-person, and the majority were also live-streamed.

Baptisms, confirmations, wedding and funerals

The numbers of services and celebrations have been:

2018 2019 2020 2021 2022
Baptisms 12 and under 15 9 9 3 12
Baptisms 12 and over 2 1 0 1 3
Confirmations 0 4 0 0 6
Weddings 4 1 2 0 5
Blessings 0 0 0 2 0
Funerals 13 5 3 3 (in church) 6 (in church)

St Michael's Church

Leadership is encouraged and developed across all ages and areas of ministry. There are five clergy serving, including two stipend clergy. Licensed ministry continues to play a key role in the parish and there are currently four Licensed Lay Ministers serving.

The life of the church is based around a number of inter-related ministries which are the responsibility of individual members of the clergy, the staff team at St Michael's or members of the congregation who volunteer their time. During 2022 we have seen God moving in, and through, these ministries in the following ways:

Life Groups

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. In line with our long term 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. We have three more Life Groups since last year (27). The format of men/dads meeting one week and women/mums the other seems to work well amongst young families and we now have three groups like this. The majority of groups have assistant leaders to help their leaders and share some of the pastoral load. The plan is that some of these assistant leaders may lead their own groups in due course. One of the newly formed groups in New Housing has been formed to equip and release new leaders. Moreover, we continue to have training sessions for 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 2022

Children's and Families Ministry

The Children's and Families Ministry has a new vision: 'Journeying with children and families as they learn about God, grow in their faith and serve and share Jesus with others'. We have continued to see growth in terms of numbers across all our groups which is a huge blessing but also presents challenges in terms of physical space, growing the team to resource the increased numbers and thinking about how we can be more intentional in providing opportunities for children to learn, grow and share their faith. We have seen new people join our teams including parents, as well as encouraging our young people to serve in our children's groups. One area, in particular, we have given priority to in terms of resourcing and training is in our additional needs provision. We have had expert training which has generated new ideas on how to best provide for those children who need that additional support. We continue to make changes and try new things as a team and we have seen a much more collaborative approach from all those involved in children's ministry as we share and swap ideas, best practice and review things if changes are needed. We were blessed with a grant from the local council towards our Messy Church work as we continue to meet and encourage families in our community as well as those who regularly come to St Michael's. Going forward, we would love to offer a Parenting for Faith course as we encourage parents to do faith at home with their kids as well as at church. Summer club in August 2022 was a fantastic event with 120 children attending.

Alpha

We have continued to run Alpha throughout the year, and daytime Alphas have proved particularly popular. New leaders have emerged, and new people have joined the church family. New people continue to find a home in St Michael's, and there has been a significant increase in the numbers of young families and people from Hong Kong joining in over the past year.

Youth

We have had so many new young people join us on a Sunday and we have had to move to a larger room as we outgrew the one we were in. During our midweek discipleship groups, we have continued meeting together on 1st Wednesdays to eat food together, worship together and have fun together. We took 6 young people to SPREE South West this year and spent two nights camping in a field, having fun and learning about Jesus. The youth team spoke in both Abbeywood School and Bradley Stoke Community School Christian Unions on various topics and helped with outreach events. We also hosted a Christmas Ball for 42 young people We had over 25 young people attend our Summer Club in August and learn who Jesus was and is, as well as what he did! We ran Alpha in year 6 at St Michael's Primary School and over 20 young people attended of whom all wanted to be filled with the Holy Spirit on the Holy Spirit Afternoon. Youth Club has had an average attendance of 45 with 63 signing up to want to come each term this year. We have deepened our relationships with the young people and are having great conversations about faith and who Jesus is. We changed our model of the youth band so now young people serve in all the bands and are being tutored more intentionally in their instrument. This year, we started having young people serve as leaders in both the tech desk and the children's work. We held a team night for our youth volunteers to envision them and have some fun together as a team. We mentored 33 young people this year in Abbeywood School, looking at mental health, self esteem, leadership qualities and how to handle our emotions.

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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 2022

Students & Young Adults Ministry

There is a healthy and growing student and young adult community at St Michael's Church - most attend the Six-Thirty and a weekly social afterwards.We also have mentoring opportunities for students and young adults. We have seen amazing spiritual growth through this, with students stepping out in faith to pray together and reach out to others. Alongside this we have 2 life groups just for students and young adults. In March 2022, we had our first in-person young adults weekend away since the pandemic, which was attended by 13 young adults, including two who would not call themselves Christians. This was a time of worship, teaching and time spent with Jesus, and we are still seeing the impact of this weekend. In September 2022 we attended UWE Freshers' Fair. Many of our own students and young adults helped to run a stall and spoke to hundreds of students about Jesus. We have also welcomed many young adults, who would not call themselves Christians, at St Michael's over 2022. By building a fun, friendly, welcoming and supportive community of young adults we have been able to welcome young adults who aren't sure of their beliefs but are desperately looking for community - something that has been identified as one of the main things younger generations are looking for in the wake of the loneliness and isolation of the pandemic. This in turn has allowed those who have come along to meet with Jesus and learn more about Him from those who follow Him. There is a culture of serving together in our young adult community at St Michael's. 16 young adults from St Michael's served at our Summer Club in 2022, giving up a week of their time to serve children and young people and support them in their faith. There are now 5 young adults on the preaching and leading rota, meaning that there is much more representation of younger people on the stage at church. This is really encouraging for younger congregation members, who see people like them at the front of church and are encouraged that there is a place for them to belong and serve too. We have a large number of young adults serving on the youth and children's teams, helping with the Thursday evening youth club and with youth work and children work on a Sunday morning, as well as on our worship and tech team.

Musical Worship

Our musical worship is an integral part of the life of our church, and has been flourishing throughout 2022. At the end of 2022 the number of people on our worship and tech teams totalled 48 people - these include singers, instrumentalists and audio and visual engineers We worship in many different styles, all of which are intended to facilitate encounter with Jesus and transformation through worship. We cultivate a rhythm of learning and growing together as a worship team with our first Team Night in Autumn 2022 life. We also aim encourage and help young people grow in their worship leading gifts - we currently have 6 young people who are members of our worship team and are being supported by more experienced worship team members as they grow in confidence as worship leaders and musicians. The purpose of our musical worship is to create space for everyone who comes to St Michael's to offer their sacrifice of praise to Jesus, and to meet with Jesus and experience His transformation power.

Mission Action Group

In 2022, we continued to support mission both at home and abroad through a 10% tithe of all money given to the PCC. In total, we gave away £48,325, which excludes all money given by the church to mission through the Heart of the Community fund. Of the PCC's giving to mission, half was used to provide regular support to seven overseas partners in Moldova, Brazil, India, Uganda, Nicaragua and South Sudan, and a further 20% supported local partners in Bristol and Wales. The remainder (30%) was given in response to crises at home and abroad, such as Ukraine, and also to give a small bursary to a church member volunteering with YWAM.

Mission trips recommenced with visits to Moldova and to South Sudan. One of our 12 mission partners was featured every month, with a brief video update, newsletter and prayer points. Latest news of mission partners was sent regularly to the MAG group and via the church's Mission Facebook page and bi-monthly Meet the Mission Partner prayer meetings took place on Zoom.

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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 2022

New Housing Areas

There is a team working specifically on the New Housing Areas within our parish. This is largely made up of volunteers and they meet regularly. There are four Life Groups in our new housing areas, including one in the retirement village, one focusing on Highbrook Park, one in Cheswick and one in Scholar's Chase. Throughout the year, our baby and toddler group in Cheswick, Saplings, continues to flourish. 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 for songs, stories and craft around a fire. In the retirement village the monthly Sunday service and the Songs of Praise events are popular. This year we had a Christmas float. The float was active for three nights in Cheswick, Scholars Chase and Brooklands Park, featuring Father Christmas, gifts and telling the nativity story. This was a great success: we had countless interactions and residents loved it. At Cheswick it provided a focus for our 'carols in the square' at the end. We resumed the Christmas concert in Wallscourt Farm Academy, featuring uniform groups and the school choir - over 250 people attended this. Also, the retirement Village Carol concert was a big hit.

The Coffee Shop

The Coffee Shop staff and volunteers have continued to serve their community by providing "Welcome Refreshment" in a safe and comfortable environment. The past year has seen a few major changes with the experienced Coffee Shop Manager resigning after 12 years and turnover breaching the VAT threshold of £85K. It has also changed its name from The Old School Rooms Coffee Shop to The Coffee Shop. This, alongside a new logo, has moved The Coffee Shop in line with other St Michael's branding. Despite these challenges, The Coffee Shop continues to be an important ministry of St Michael's Church and one which is valued by staff, volunteers and customers alike.

Pastoral Ministry

We have continued with the pastoral pack initiative we started early on in lockdown. 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. It has been a joy and privilege to follow up some of these contacts with end-of-life and funeral ministry. 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. Our partnership with Kintsugi Hope has continued to grow, with two well-received in-person and online well-being groups taking place earlier in the year. 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.

Pre-school and Nursery

After two years of living with significant restrictions due to Covid-19 it has been wonderful to begin to emerge into a new season of more 'normal' life at the Pre-School & Nursery. There are some positive changes in practice coming out of the Covid years, which we have chosen to continue with. The wider crisis of recruitment in Nursery education had an impact on other local providers which led to a surge in demand for places in our setting. There were staffing challenges but under the able leadership of the Acting Manager and Acting Deputy Manager, the staff have pulled together and done an amazing job. We have been blessed with some excellent new additions to the team and are looking forward to welcoming our newly-appointed Manager from mid-April. Recruitment in the Early Years sector remains a challenge for all providers. As some of our staff move towards retirement age we are trusting that God will raise up new practitioners to join our outstanding staff team, whose wonderful commitment to the children's learning and growing is at the heart of all we are and all we do. There have been changes in the systems used to support Nursery operations as we have adopted use of the FAMLY software. Whilst bringing its inevitable challenges in the period of transition, this has proved to be a positive change for staff and parents alike. We have also set up some good systems to integrate operations and finances. We were delighted to end the year with a modest surplus of about £18K; this was largely due to the staff vacancies we carried towards the end of the year. High on our list of priorities for the coming year is to re-visit plans to invest in the garden to make it fit for purpose, all year round. In the coming year there will also be changes in the Management Committee.

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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 2022

Fabric Committee

The Fabric Committee is responsible for the upkeep of our Church building.

We continue to work towards the refurbishment of the church building and have submitted a revised application to the Diocesan Advisory Committee (DAC). This document was issued to Historic England, Church Building Council, The Georgian Group, Victorian Society and the Society for the protection of Ancient Buildings. Three of the groups visited the church to fully understand our proposals, it became clear that whilst none of them would support the removal of the contentious items (pillars and Georgian fireplace), they supported the rest of our application. It was decided to remove these items as to challenge their advice would involve the need to apply to the Consistory Court and employ a barrister to present our case - which would involve significant legal costs. We submitted revised plans that retained the pillars and fireplace and were then asked to enhance the Statement of Need and Statement of Significance to be submitted early in 2023.

The official closure of the churchyard has been completed, with the application to the Privy Council completed. The PCC may hand over the maintenance of the churchyard to the Stoke Gifford Parish Council at a later date. The final guaranteed service of the electronic bell system has been arranged and involved a complementary update of the control panel to the latest specification with a further one year guarantee.

A team from the Fabric Committee met during the summer to clear and trim the overgrown edges to the public footpath that runs around the south side of the church.

The PCC requested the committee apply to the DAC for permission to install new signs in the churchyard which have been installed.

FINANCIAL REVIEW

Financial position

Total income for the year was £1,266,478 (compared with £1,173,614 in 2021). Total expenditure exceeded income by £5,651 (in 2021, expenditure exceeded income by £59,095).

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 Ltd (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 2022 directly, 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.

Impact of Covid-19

As a consequence of the diminishing impact of Covid-19 during the course of the year, the Covid-related measures described in the 2020 & 2021 Annual Trustees' Reports were able to be progressively reduced, in line with Government and Church of England guidance. As we enter 2023, we have relaxed all related measures that we had put in place in response to Covid-19 and we do not plan to monitor or report on this going forward.

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 2022

FINANCIAL REVIEW

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. 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 (excluding fixed assets), Windfall fund and Brimble fund. At the year end, free reserves were £160,088 (2021 - 199,373). Further reserves of £167,904 (2021 - £147,173) were held in the Pre-school and Nursery general fund.

At the year end, total reserves were £405,593 (£411,244 in 2021) of which £33,466 (2021 - £23,737) was held in restricted funds.

Future Major Expenditure

The charity has aspirations to refurbish its historic church building adjacent to the Stoke Gifford village green, for which plans have been developed. However, the financial viability of the project will continue to be scrutinised in the light of the charity's financial position.

Going Concern

The annual accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, it is recognised that adverse external financial pressures such as the cost of domestic energy, and high inflation and interest rates will continue to have a profound impact on the UK's economy, which will in turn affect the charity during 2023. The Trustees have therefore considered the impact of these issues on our current and future financial position. The charity holds total reserves of £405,593, including designated reserves that can be drawn down if necessary. There is a cash balance of £446,235. The Trustees are encouraged that the levels of regular giving held up well during 2022, with a larger than expected response to the PCC Gift Day in October 2022.

In addition, the charity is expecting stability in all the main office holders in the Church, which ensures consistency in relation to costs as well as to the life of the Church. However, should the financial position worsen considerably over the next 12 months, a number of potential contingency options have been identified.

Therefore, notwithstanding the deficit incurred in 2022 and the projected deficit in 2023, the Trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 18 months from the date on which these financial statements are approved.

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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 2022

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 2023 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

Serving 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 2022

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 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Related parties

St Michael's PCC is a related party of St Michael's Church Centre Limited (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 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 supplied) a "letter of comfort" to signify 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 £60,430 (2021: £282,375).

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 are the liability of SMCC, and are 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 Diocese loan outstanding, and recoverable from SMCC, was £281,250 (2021: £281,250).

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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 2022

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 three years.

We have two individuals appointed to the roles of Parish Safeguarding Officer, with responsibility split into - Adults at Risk and 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 2022. The Policy is available in the two church centres and the safeguarding section of the church website. Posters are located around the church estate, highlighting who to talk to about any safeguarding concerns. There is 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 2022

Trustees

S Jones - Rector T Benyon - Associate Vicar J Bradley - Associate Minister V Wicks - Curate E Huggins - Curate (ex officio appointed 1 July 2022) M Hepburn - Licensed Lay Minister (ex officio) (resigned 04.05.22) 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) (resigned 04.05.22) I Osborne - Churchwarden (resigned 04.05.22) D Pilch - Churchwarden (appointed 04.05.22) M Watkivs - Churchwarden M Roach - Elected member - Treasurer D McCann - Deanery Synod Representative (resigned 04.05.22) L Thomas - Diocesan Synod Representative A Mead - Co-opted (Operations Manager) E Bakewell - Elected member (resigned 04.05.22) P Hallett Allen - Elected member (resigned 04.05.22) O McGregor - Elected member K Needham - Elected member D Ottaway - Elected member S Peacey - Elected member (resigned 13 February 2023) L Pott - Elected member P Berry - Elected member (appointed 04.05.22) P. Davies -Elected member (appointed 04.05.22) C. Lacey - Elected member (appointed 04.05.22)

J. Lim - Elected member (appointed 04.05.22)

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 13

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2022

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 ............................................. and signed on its behalf by:

....................................................................

S Jones - Trustee

Page 14

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 2022 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.

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 15

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 16

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 17

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: .............................................

Page 18

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Statement of Financial Activities FOR THE YEAR ENDED 31 DECEMBER 2022

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
£
462,393
25,974
88,655
541,513
5,425
1,487
-
1,125,447
315
514,222
95,531
523,048
1,133,116
(7,669)
(7,711)
(15,380)
387,507
372,127		 Restricted
funds
£
47,240
-
-
-
-
15
93,776
141,031
-
139,013
-
-
139,013
2,018
7,711
9,729
23,737
33,466		 2022
Total
funds
£
509,633
25,974
88,655
541,513
5,425
1,502
93,776
1,266,478
315
653,235
95,531
523,048
1,272,129
(5,651)
-
(5,651)
411,244
405,593		 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

The notes form part of these financial statements

Page 19

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Balance Sheet 31 DECEMBER 2022

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
17
1,967
CURRENT ASSETS
Stocks
18
-
Debtors: amounts falling due within one year
19
16,938
Debtors: amounts falling due after more than
one year
19
281,250
Cash at bank and in hand
414,438
712,626
CREDITORS
Amounts falling due within one year
20
(61,216)
NET CURRENT ASSETS
651,410
TOTAL ASSETS LESS CURRENT
LIABILITIES
653,377
CREDITORS
Amounts falling due after more than one year
21
(281,250)
NET ASSETS
372,127		 Restricted
funds
£
-
-
1,669
-
31,797
33,466
-
33,466
33,466
-
33,466		 2022
Total
funds
£
1,967
-
18,607
281,250
446,235
746,092
(61,216)
684,876
686,843
(281,250)
405,593		 2021
Total
funds
£
-
841
10,159
281,250
459,062
751,312
(58,818)
692,494
692,494
(281,250)
411,244

The notes form part of these financial statements

continued...

Page 20

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Balance Sheet - continued 31 DECEMBER 2022

FUNDS
24
Unrestricted funds
372,127
Restricted funds
33,466
TOTAL FUNDS
405,593
The
financial
statements
were
approved
by
the
Board
of
Trustees
and
authorised
for
............................................. and were signed on its behalf by:
.............................................
S Jones - Trustee
.............................................
D Pilch - Trustee
.............................................
M Watkivs - Trustee		 387,507
23,737
411,244
issue
on

The notes form part of these financial statements

Page 21

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Loan repayments in year
Net cash provided by/(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		 2022
£
(11,379)
(11,379)
(2,950)
1,502
(1,448)
-
-
(12,827)
459,062
446,235		 2021
£
16,867
16,867
-
202
202
(46,875)
(46,875)
(29,806)
488,868
459,062

The notes form part of these financial statements

Page 22

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2022

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING FROM OPERATING
ACTIVITIES
2022 2021
£ £
Net expenditure for the reporting period (as per the Statement of
Financial Activities) (5,651) (59,095)
Adjustments for:
Depreciation charges 983 -
Interest received (1,502) (202)
Decrease in stocks 841 -
(Increase)/decrease in debtors (8,448) 78,907
Increase/(decrease) in creditors 2,398 (2,743)
Net cash (used in)/provided by operations (11,379) 16,867
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank and in hand 459,062 (12,827) 446,235
459,062 (12,827) 446,235
Debt
Debts falling due after 1 year (281,250) - (281,250)
(281,250) - (281,250)
Total 177,812 (12,827) 164,985

The notes form part of these financial statements

Page 23

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2022

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 Limited (SMCC) 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 SMCC. 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 SMCC in the event of any default. The total value of this loan at the year-end was £60,530.

The trustees have considered the potential impact on the charity in the event of default on either or both of these debts by SMCC, 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.

As concluded above, the accounts have been prepared on the assumption that the charity is able to continue as a going concern. The charity holds free reserves of £160,088 with further designated reserves of £212,039. There is total cash balance of £446,235. 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.

continued...

Page 24

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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

Plant, property and equipment - 3 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.

continued...

Page 25

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

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 26

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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
Grants receivable		 2022
£
404,842
88,274
16,517
509,633		 2021
£
361,170
81,671
55,290
498,131

Grants received, included in the above, are as follows:

Listed Places of Worship Scheme
Bristol Diocese
HMRC Job Retention Scheme
South Gloucestershire Council - preschool education
Bristol Archdeaconry Charity - student ministry
Souter Charitable Trust - Moldova nursery		 2022
£
-
517
-
-
12,000
4,000
16,517		 2021
£
983
19,810
17,348
7,149
10,000
-
55,290

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 2022

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
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		 2022
£
5,425
2022
£
1,502
2022
£
75
4,197
17,034
4,668
88,655
134,066
407,447
656,142
2022
£
129,457
4,609
134,066
2022
£
62,372
31,404
93,776		 2021
£
2,432
2021
£
202
2021
£
-
2,978
7,004
592
56,885
118,542
411,261		 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

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 2022

7. RAISING FUNDS

Raising donations and legacies
Fundraising event costs
8.
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see
note 9)
£
Ministry and mission
576,364
Coffee Shop
95,531
Pre-school and Nursery
523,048
1,194,943
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
Depreciation		 Grant
funding of
activities
(see note
10)
£
70,991
-
-
70,991		 2022
£
315
Support
costs (see
note 11)
£
5,880
-
-
5,880
2022
£
610,320
36,361
27,761
10,385
8,953
153,000
118,245
11,940
93,984
300
31,905
19,353
42,001
26,755
2,697
983
1,194,943		 2021
£
695
Totals
£
653,235
95,531
523,048
1,271,814
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

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 2022

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
Moldova Mission
Epaphras Trust
North Bristol Food Bank
Caring at Christmas
St Michaels C of E VC Primary School
Disasters Emergency Committee
Other		 2022
£
70,991
-
70,991
2022
£
14,523
2,760
4,760
5,160
1,910
2,880
4,080
1,620
1,620
3,760
6,000
5,010
1,000
1,000
2,000
2,010
3,978
64,071		 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

Individuals experiencing difficulties are assisted through friendship and also in monetary form as appropriate. During the year, grants of £6,920 (2021 - £10,200) 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 2022

11. SUPPORT COSTS

11. SUPPORT COSTS
Governance
costs
£
Ministry and mission 5,880
Support costs, included in the above, are as follows:
Governance costs
2022 2021
Ministry
and Total
mission activities
£ £
Auditors' remuneration 3,880 3,880
Accounts preparation 2,000 2,000
Consultancy - 301
5,880 6,181
12. AUDITORS' REMUNERATION
2022 2021
£ £
Fees payable to the charity's auditors for the audit of the charity's financial
statements 3,880 3,880
Accounts preparation 2,000 2,000
Total fees payable 5,880 5,880

13. TRUSTEES' REMUNERATION AND BENEFITS

The trustees all give freely of their time and expertise.

During the year, employment benefits were paid to 2 trustees (2021: 3) under employment contracts for non-trustee services provided to the PCC. Total employment benefits of £36,237 (2021: £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 2022

13. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

During the year 4 trustees (2021: 4) had their expenses met by the PCC. Expenses of £2,144 (2021 - £2,044) were paid for travel, subsistence, phone services, hospitality and provision of musical equipment.

14. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Pre-school and Nursery
Coffee Shop
Church administration and finance
Youth, student and children's ministers
Assistant Youth ministers
Facilities		 2022
£
541,747
42,934
25,639
610,320
2022
19
6
2
3
1
-
31		 2021
£
551,205
40,599
25,287
617,091
2021
22
5
2
3
1
1
34

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

Staff costs by activity during the year were as follows:

2022 2021
£ £
PCC 151,851 153,099
Pre-school and Nursery 392,390 405,124
Coffee Shop 66,079 58,868
610,320 617,091

In addition to the above, other employment costs of £93,776 (2021 - £75,587) 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.

continued...

Page 32

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

15.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
funds
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
446,226
51,905
Charitable activities
Ministry and mission
10,574
-
Coffee Shop
56,885
-
Pre-school and Nursery
414,676
115,127
Raising funds
2,432
-
Investment income
202
-
Other income
-
75,587
Total
930,995
242,619
EXPENDITURE ON
Raising funds
695
-
Charitable activities
Ministry and mission
455,333
132,967
Coffee Shop
77,712
-
Pre-school and Nursery
450,875
115,127
Total
984,615
248,094
NET INCOME/(EXPENDITURE)
(53,620)
(5,475)
Transfers between funds
(4,809)
4,809
Net movement in funds
(58,429)
(666)
RECONCILIATION OF FUNDS
Total funds brought forward
445,936
24,403
TOTAL FUNDS CARRIED FORWARD
387,507
23,737		 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

continued...

Page 33

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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

Improvements
to
Plant and
property
machinery
£
£
COST
At 1 January 2022
86,916
-
Additions
-
2,950
At 31 December 2022
86,916
2,950
DEPRECIATION
At 1 January 2022
86,916
-
Charge for year
-
983
At 31 December 2022
86,916
983
NET BOOK VALUE
At 31 December 2022
-
1,967
At 31 December 2021
-
-
18.
STOCKS
2022
£
Stocks
-		 Totals
£
86,916
2,950
89,866
86,916
983
87,899
1,967
-
2021
£
841

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 2022

19. DEBTORS

Amounts falling due within one year:
Gift aid tax refunds
Pre-school fees owing
Other debtors
Prepayments and accrued income
Amounts falling due after more than one year:
Loan to St Michael's
Church Centre Ltd
Aggregate amounts		 2022
£
8,338
7,284
839
2,146
18,607
281,250
299,857		 2021
£
8,580
247
1,332
-
10,159
281,250
291,409

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

Social security and other taxes
Pension contributions payable
Other creditors
National Education Grant received in advance
Pre-school deposits held
St Michael's Church Centre Ltd
Accrued expenses
Pre-school fees received in advance		 2022
£
5,623
4,334
1,336
26,838
5,400
2,667
8,478
6,540
61,216		 2021
£
-
4,041
1,604
28,188
7,300
2,667
8,478
6,540
58,818

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 2022

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

2022 2021
£ £
Other loans (see note 22) 281,250 281,250

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.

22. LOANS

An analysis of the maturity of loans is given below:

2022 2021
£ £
Amounts falling due between two and five years:
Loan from Diocese of Bristol 281,250 281,250

23. LEASING AGREEMENTS

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

Land and buildings Land and buildings
2022 2021
£ £
Expiring:
Within one year 35,000 35,000
Between one and five years 81,667 116,667
116,667 151,667

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 2022

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
Restricted funds
Sharing fund
Fabric HOTC grant fund
Rowe Trust fund
Parish Weekend fund
SIITA fund
Children's Ministry
Student Ministry
TOTAL FUNDS		 At 1.1.22
£
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		 Net
movement
in funds
£
25,291
1,379
-
1,656
(44,439)
(4,687)
(1,048)
-
(6,522)
20,701
-
(7,669)
1,561
-
(364)
-
(3,926)
8,365
(3,618)
2,018
(5,651)		 Transfers
between
funds
£
(63,988)
-
-
-
45,339
4,386
-
-
6,522
30
-
(7,711)
-
-
167
-
3,926
-
3,618
7,711
-		 At
31.12.22
£
(38,695)
134,846
65,904
3,023
13,563
-
3,866
1,044
-
167,904
20,672
372,127
6,303
12,375
-
1,361
-
13,427
-
33,466
405,593

continued...

Page 37

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

24. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Windfall fund
Service fund
Missionary Bursaries fund
Fabric fund
Library fund
Coffee Shop fund
Pre-school and Nursery fund
Restricted funds
Sharing fund
Rowe Trust fund
SIITA fund
Children's Ministry
SMCC salary contribution
Student Ministry
TOTAL FUNDS		 Incoming
resources
£
487,889
1,379
1,656
4,040
175
-
88,705
541,603
1,125,447
6,525
15
9,715
31,000
93,776
-
141,031
1,266,478		 Resources
expended
£
(462,598)
-
-
(48,479)
(4,862)
(1,048)
(95,227)
(520,902)
(1,133,116)
(4,964)
(379)
(13,641)
(22,635)
(93,776)
(3,618)
(139,013)
(1,272,129)		 Movement
in funds
£
25,291
1,379
1,656
(44,439)
(4,687)
(1,048)
(6,522)
20,701
(7,669)
1,561
(364)
(3,926)
8,365
-
(3,618)
2,018
(5,651)

continued...

Page 38

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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
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...

Page 39

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

24. MOVEMENT IN FUNDS - continued

Comparative 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)

General fund (unrestricted)

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

During the year, £47,859 (2021 - £44,158) 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 (2021 - £1,200) was transferred to the Fabric fund as a provision for future costs.

An additional £3,186 (2021: £5,955) was transferred to the Fabric fund to clear the deficit balance on the fund. £3,618 (2021 - £730) was transferred to the Student Ministry fund to cover the Student Minister's salary costs. £1,406 (2021 - £299) was transferred to the SIITA fund to clear the deficit balance on the fund and £167 was transferred to the Rowe Trust fund to clear the deficit balance on the fund.

A transfer of £600 was also transferred to the Coffee Shop fund in recognition of expenses paid by the PCC. An additional £15,880 (2021 - £8,758) was transferred to the Coffee Shop underwriting the charitable objectives of the Coffee Shop and to clear the year end negative balance.

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 2022

24. MOVEMENT IN FUNDS - continued

It is recognised that the General Fund is in deficit which is due in part to the Coffee Shop investment. However, the Brimble fund is now redundant as it served to "hold" the gift from the Brimble Estate, which then allowed the refurbishment of the old church roof. It is planned to absorb this into the General Fund along with the Windfall Gift Fund in 2023. This will also reduce the number of Funds being managed.

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, £47,859 (2021 - £44,158) was transferred from general funds. £2,520 (2021 - £3,780) 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 (2021 - £1,200) was transferred from the general fund. An additional £3,186 (2021 - £5,955) 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 (2021 - £8,758) 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. A transfer of £200 was made last year 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.

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...

Page 41

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF STOKE GIFFORD

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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

Fund balances as at 31 December 2021
Unrestricted
Restricted		 Fund balances as at 31 December 2021
Unrestricted
Restricted		 Fund balances as at 31 December 2021
Unrestricted
Restricted		 Total
funds
funds		 funds
£
£		 £
Current assets 727,565
23,747		 751,312
Current liabilities (58,808) (10) (58,818)
Non-current liabilities (281,250
)		 - (281,250
)
Total net assets 387,507
23,737		 411,244

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.

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 2022 - £23,663 (2021 - £23,175). There were contributions of £4,242 (2021 - £4,178) outstanding at the year-end.

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 2022

25. EMPLOYEE BENEFIT OBLIGATIONS - continued

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 (0.25% at the start of the year, increasing throughout the year to 3.50% on 16th December 2022), 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 (2021 - £281,250). Interest payments of £7,969 (2021 - £4,555) 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 (£60,530 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 £118,245 (2021 - £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 £31,404 (2021: £38,329) and £62,372 (2021: £37,258) 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.

Donations from trustees and related parties

The aggregate unrestricted donations received from trustees were £135,630 (2021 - £129,316)

Other related party transactions

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 2022

26. RELATED PARTY DISCLOSURES - continued

There were no further related party transactions.

Page 44