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2020-12-31-accounts

Registered UK Charity No: 1134717

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH

Annual Report and Financial Statements

Year ended 31 December 2020

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH

CONTENTS

Page
Trustees' Annual Report 1 – 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Accounts 10 – 22

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The members of the Parochial Church Council (PCC) are pleased to present their report together with the unaudited financial statements of the PCC for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, the Charities Statement of Recommended Practice ("SORP (FRS 102)") applicable to charities preparing their report and financial statements in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) (effective 1 January 2015).

Aim and purposes

The North Lambeth Parish PCC has the responsibility of working in the parish with the clergy in promoting the whole mission of the church - pastoral, evangelistic, social and ecumenical.

It also has maintenance responsibilities for St Anselm's Church, together with other properties – Havilland House, St Anselm's Hall, 28 Hayman's Point, three garages and a car park. Under a lease agreement signed with the Diocese in 2019, North Lambeth Parish also assumes responsibility for major external repairs for St Peter’s House, Vauxhall.

Objectives and activities

The PCC is committed to enabling as many people as possible to worship at its churches and to be part of the parish community of North Lambeth. In cooperation with the clergy, the PCC maintains an overview of its worship and other activities and makes suggestions on how they can best serve the existing congregation and benefit and involve others that live within or around the parish. The PCC's services and worship put faith into practice through prayer, the study of scripture, music and sacrament.

When planning its activities, the clergy and the PCC have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance for charities on the advancement of religion. The PCC aims to enable ordinary people to live out their faith as part of its parish community through:

To facilitate this work, it is important that the churches and other church properties are properly managed and maintained. The members of the PCC also believe that it is a valuable part of the church's mission to make the buildings available for use by the wider community, both to serve the community and offer a link between it and the church.

Achievements and performance

COVID-19: The pandemic presented a challenging time and St Anselm’s responded to the immediate challenge of lockdown by Live Streaming Sunday services through its website. Church of England guidance was followed and as restrictions were eased, live worship resumed alongside Lives Streaming. Some live services went ahead in 2020 with congregation size restricted by putting in place a ticketing system to ensure social distancing.

Worshipping Numbers: The congregation has seen sustained growth over 10 years and continues to represent the diverse community of Kennington-North Lambeth Pariah. Overall the number of people worshipping in the Parish this year has remained steady, as has the number of people attending Parish educational courses. The number of young people attending worship in the parish is significant as are the resources we put into this important area of ministry.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Children's Groups: During 2019, the PCC continued to provide crèche facilities, Sunday School services and Youth Group meetings during its Sunday morning services at St Anselm's and St Peter's Churches, with average weekly attendances of 30 under-16-year olds. From September 2019, activities at St Peter’s church were performed under Holy Trinity Clapham’s Resourcing Church initiative. St Anselm’s new Children and Families' Minister was appointed in May 2020, who provided filmed children’s slots for the Live Streamed services during 2020 and returned for in-person Sunday School from September 2020. The outreach group Church Mice was held weekly, averaging 20 children who attended with their carers.

Community: The church’s involvement in the life of the community continues to be strong and active including our youth outreach and local schools. Representing the Parish, the clergy continue to get involved in the community fulfilling a variety of differing and influential roles. This is reflected in the use of our spaces, especially our partnerships with Forward Trust and London Cooking Project and involvement with the Pelican Nursery, as well as Change Up who look out for our marginalised young persons looking to start up their own businesses, based in St Anselm’s Hall. The Pelican Nursery, which is still offering some free bursary spaces for local parish children who could not otherwise afford it, continues to thrive and have healthy waiting lists for its nursery and baby nursery. Both sites had excellent Ofsted reports. Central to responding to our calling here in North Lambeth is to be a church that is fully engaged in the life of parishioners, creating community and fostering healthy relationships.

Fete: Due to COVID-19, the usual annual summer fete in the gardens of Lambeth Palace was not possible in 2020.

Music: The church has a Musical Director who provides accompaniment for our regular services. Young Voices, a project to encourage children with their musical development, established a choir three years ago which continues to perform regularly at Sunday services and at other events.

Responsible Caring: As required by the Diocese, the PCC completed their Safeguarding Audit online in November 2018. There are currently five Parish Safeguarding Officers (PSOs), all of whom have been on a safeguarding course held by the Diocese. Their roles are to make sure we have a safe Church and to ensure our policies and practices concerning our children and vulnerable adults, and those who supervise them, are kept up to date.

Fairtrade Parish: Since we become a Fairtrade Parish a decade ago efforts have been made to ensure that this message gets across to the congregation. We have Fairtrade stalls at a number of key Parish events and also had stalls in our churches.

St Anselm’s Site Development: Progress has been made with Centenary Memorial Sunday School Trust having sold Centenary Hall and having made a decision in principle to invest the proceeds in the development of the site. As a consequence, Dow Jones Architects have been appointed, following a competitive procurement, and have produced concept designs for the redesign of the interior of the church. This design envisages a four storey tower being built within the church providing community rooms, toilets and offices. The Parish is undertaking a costing and prioritisation exercise to ensure plans are affordable within the Centenary Hall capital receipt. Following extensive marketing of the development opportunity at the rear of the church and bid submission, the Parish selected Rocco Homes as the preferred development partner. Rocco propose developing nine flats on the site and providing 270sqm of ground floor accommodation for the Parish as well as a premium to mitigate the loss of income from Havilland House. The Parish is currently negotiating a Development Agreement with Rocco Homes. A grant of £50,000 from the Diocese has been instrumental in enabling the Parish to progress this work, allowing it to procure the necessary professional support.

North Lambeth Parish Buildings Group: The Parish Buildings Group has been meeting before every alternate PCC to prioritize, plan and budget for repairs to Parish buildings. For the time being it has concentrated on the two church buildings. The group prioritized the work needed to the church buildings that was listed in the quinquennial reports and the defects schedule prepared in December 2015, according to urgency and importance. It then recommended a repairs budget for 2017 which would allow the work to begin; the next stage has been to implement the items which were assessed as both urgent and important, which started in 2020 and continued in 2021. The church has been rewired to ensure we comply with electrical safety standards. The redevelopment project will undertake more substantial building projects such as improved disabled access and new heating system.

Page 2

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Volunteers: Contributions to parish life by congregational members are too numerous to mention individually, and include teaching Sunday School, organ playing, service preparation/reading/serving, locking and unlocking buildings, laundering linen, flower arranging and organising sales, etc. There is an ongoing need to further develop ourselves as a living body by encouraging lay and non-paid participation in all spheres of ministry.

Financial review

The Statement of Financial Activities (SoFA) on page 9 shows a net surplus on the General Fund for the year of £53,389 (2019: net deficit of £9,567 - Note 18). Unrestricted reserves stand at £28,959 at 31 December 2020 (2019: in deficit by £45,835) after transfers from designated funds of £21,405 (see below).

Net expenditure on designated funds amounted to £nil (2019: £50,016), before net losses on investment assets of £2,378 (2019: net gains of £8,309) and the release of excess designated funds of £21,405 which were transferred to unrestricted funds in the year. No investments were acquired or sold in the year. Designated reserves stand at £17,721 as at 31 December 2020 (2019: £41,504).

As part of a finance simplification initiative undertaken in 2020 it was decided to simplify the restricted funds, where possible given the request of the donors. Several de minimis funds (eg Father Gilbert, Robes Project) were consolidated into a ‘Mission Giving’ fund designed to support broader charitable giving. This fund stood at 11,740 as at 31 December 2020. Realised and unrealised gains on remaining restricted fund investments amounted to £639 (2019: £1,140). Total restricted fund balances stood at £88,058 as at 31 December 2020 (2019: £68,213).

Reserves policy

It is PCC policy to maintain a balance on unrestricted funds, if possible, sufficient to support at least three months unrestricted payments, equivalent to some £50,000 during 2020. The long term aim is to be financially self sufficient with repaired and up to date buildings and, wherever possible, contributions to the Parish Support Fund. Following the overall surplus in 2020, driven by increased donations and reduced expenditure, as well as the fund simplification initiative unrestricted funds now stand at £28,959. Clearly this is short of the target but a significant improvement on 2019 (deficit of £45,563). The PCC is reliant on the continuing support of its congregation and other community contributors, and maximising property rentals.

Historically the PCC has had several designated funds intended to provide reserves for funding repairs to buildings or further shortfalls in the current account. It was decided in 2020 to simplify these funds to give a much simpler view to the PCC of funds and a much closer alignment of funds to bank accounts. Over the coming 12 months the PCC endeavours to further improve the fund positions. Once the unrestricted fund balance target is met the PCC with support from the finance committee will look to further segment the funds to support reserves for longer term initiatives and investments.

The balances held in the Salamanca Trust Fund and the Deaconess Pearson Fund are restricted to offer bursaries to help with local educational needs and for supporting training needs for women's ministry respectively. Of the retained earmarked funds representing ongoing projects, the St Anselm's Development Fund stands at £44,151 while the Kennington Kitchen project is awaiting further developments; the balance on the Organ Fund has been transferred in full to St Peter's Church, Vauxhall since the year end.

Investment powers and policy

In accordance with the Church Representation Rules, the members of the PCC have the power to make any investment which they see fit.

Page 3

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Sustainability and COVID-19

The long-term financial sustainability of North Lambeth Parish came into sharp focus in early 2020 with the arrival of the global COVID-19 pandemic. The PCC and new 2020 finance committee were quick to take action, including:

Throughout 2020 and beyond the PCC and finance committee is further committed to simplifying the financial management of North Lambeth Parish and increasing reserves over time to an appropriate and sustainable level.

Plans for future periods

The continued growth of our congregations, the strengthening of Christian education and the service we provide to one another, both in church and across the wider Parish, continues to be our main focus.

The PCC has advanced plans to implement its vision for a Jigsaw Ministry, which includes setting up of new congregations across the parish. As part of this commitment to grow the numbers who worship as part of the community, funding was sought from the Church of England Strategic Bid Fund to help the PCC reach out in this new way and a £25,000 interest free loan was received in August 2019. It is hoped that we will welcome a new pioneer vicar for the St Mary’s Eco-church initiative in conjunction with Lambeth Palace and the Garden Museum and a Chaplain and Children and Families’ Minister was appointed in April 2020 to serve both Archbishop Sumner’s School and St Anselm’s Church.

The Centenary Memorial Sunday School completed on the sale of Centenary Hall in May 2020 and its trustees have agreed in consultation with the Charity Commission that the proceeds of sale should be used for the development of St Anselm’s interior to better service the needs of the congregation and those of current community users of Centenary Hall. This project began in earnest in 2021 and is likely to continue over the next four or five years.

As always, we look forward to being witnesses to the Gospel here in North Lambeth with real hope for the coming year, holding the two commandments close to our heart – to love the Lord our God with all our heart, with all our soul, mind and strength, most evidenced through the beauty of our worship; and to love our neighbour as ourselves, as we continually to look outward and serve the Parish.

Reference and administrative details

Charity number: 1134717
Principal office: 286 Kennington Road, Kennington, London SE11 5DU
PCC Secretary: James Collenette
Independent examiner: C J Lloyd
Bankers: NatWest Bank plc, Lambeth North Branch SE1 7HW

Page 4

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees

The members of the PCC are the trustees of the charity for the purposes of charity law, and throughout this report are collectively referred to as the members of the PCC. The members of the PCC who served in office during the year and since the year end were as follows:

Key management personnel Team Rector: Rev Canon Angus Aagaard (PCC Chair) Pioneer Curate: Rev Steve Davidson Pioneer Minister: Rev Donna Gibbs Pioneer Vicar (Eco-church): Rev Sharon Moughtin (appointed 4 May 2021) Children and Families' Minister: Suzette Aagaard (appointed 30 April 2020)

Clergy members of the PCC are remunerated through the Church of England, which is the effective controlling entity. Their remuneration is set by the Church.

Churchwardens: Susannah Wiltshire
Doris Amankwaah (appointed 13 April 2021)
Representatives, Deanery Synod: Omowunmi Ladenika
Tekha Kidane
Rosie Walter
Esther Ketskemety-Smith (resigned 13 April 2021)
Other elected members: James Collenette
Marjorie Griffith (resigned 13 April 2021)
Lisa Mulley
Sarah Kennedy
Aklilu Haddish (resigned 13 April 2021)
Macleana Williams (resigned 13 April 2021)
Emma Addo-Nortey
David De Cruz
Kwaku Yeboah
Patricia Knight (appointed 21 January 2020)
Greg Brown (Treasurer) (appointed 1 March 2020)
Caroline Campbell (appointed 13 April 2021)
John Hooton (appointed 13 April 2021)
Dominic James (appointed 13 April 2021)
Tom Shakespeare (appointed 13 April 2021)
Josephine Medvei (appointed 13 April 2021)

Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules.

Governance and Management

The PCC is a corporate body established by the Church of England.

Governing document

The operations, structure and objectives of the PCC are laid down in accordance with the PCCs (Powers) Measure 1956 and Church Representation Rules as amended and replaced in January 2020.

Appointment of members of the PCC

Membership of the Area Councils consists of (ex-officio) the relevant Area bishop and archdeacon, the area deans and the lay-chairs of the deanery synods in the Area, and a number of members elected by the members of the deanery synods in the Area, voting by houses. The Council has no powers of co-option except that any assistant bishop serving in the Area may be invited to become a member.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH TRUSTEES' ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Governance and Management (continued)

Members of the PCC induction and training

New members of the PCC undergo orientation to brief them on their legal obligations under charity law, the content of the governing document, the PCC and decision making processes, recent financial performance of the charity and plans for future periods. Each member signs a Trustee Declaration as to their willingness to act and awareness of the organisation's objects as set out in the governing documents. Members of the PCC are encouraged to attend appropriate external training events where these will facilitate the understanding of their role.

Risk management

The members of the PCC examine the major risks that the PCC faces each financial year when preparing and updating their strategy. The PCC reviews its reserves policy on an annual basis to reflect the on-going concerns and needs in the parish and has established a Sustainability Group which is now reporting on emerging issues to the members.

Financial sustainability is a major risk, managed by the maximisation of rental income and by the regular review of income sources and bank balances to ensure sufficient working capital is in place to meet payments as they fall due.

Major non-financial risks are congregational decline and the safety of our members and indeed all users of our facilities, particularly children. The clergy engage continuously with members of the congregation and those of the wider parish community to keep church attendances high, and the appointed Parish Safeguarding Officers are scrupulous in their oversight of the PCC's caring responsibilities.

Structure

There were normally 6 meetings per year as is usual. The average attendance per meeting has been 20. Finance and Standing Committee meetings take place normally two weeks before each PCC meeting.

All the PCC meetings have been lively forums for discussion of Parish business, dedicated to the service of God and the community and trustees have no doubt that they will continue to be so.

Given its wide responsibilities, the PCC operates through a number of committees which meet between full meetings of the PCC:

Standing Committee

This is the only committee required by law. It has power to transact the business of the PCC between its meetings, subject to any direction given by the Council. It consists of ex officio clergy, church wardens, the PCC secretary and PCC lay chair.

Finance and Property Committee

At the end of 2019 the Finance and Property committee was renewed to bring new life into the workings of the Parish’s finances. The renewed committee brought new expertise including: strategy, leadership, accounting expertise, charity accounting expertise, fundraising and digital giving experience.

Churches Together in North Lambeth Parish and District: Southbank Churches

The churches in North Lambeth covenanted some years ago to work together on various issues and for representatives of each of the churches to meet regularly.

Christian Aid Committee

The local ecumenical Christian Aid Committee, which promotes Christian Aid publicly, plans events and raises funds throughout each year, is informally related to Churches Together.

Approved by the PCC on 29 October 2021 and signed on its behalf by:

Angus Aagaard

….........................................

Chair

Angus Aagaard

Page 6

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS AND TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH

I report on the unaudited accounts of the Parochial Church Council (PCC) for the year ended 31 December 2020, which are set out on pages 8 to 23.

Respective responsibilities of the PCC and examiner

As trustees of the charity, the members of the PCC are responsible for the preparation of the accounts. The members of the Council consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 ("the 2011 Act") and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the management committee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in a full audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the next statement.

Independent examiner's statement

In connection with my examination, no matters have come to my attention:

have not been met; or

C J Lloyd

……………….........

C J Lloyd 1 Whytingham Road Tring Hertfordshire HP23 5JN

Dated: 29 October 2021

Page 7

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
INCOME
Voluntary sources:
Donations and grants
2
Income from other sources:
Rental income
3
Miscellaneous income
3
Income from charitable activities:
Related to the objects of the Church
4
Fundraising events
4
Investments:
Investment income
5
Total income
EXPENDITURE
Cost of raising funds
6
Expenditure on charitable activities
6
Total expenditure
Net expenditure before
transfers and investment gains
Gains/(Losses) on investments
11
Transfers between funds
15
Net movement in funds for the year
7
Reconciliation of funds
Total funds brought forward
18
Total funds carried forward		 General
Funds
£
108,218
130,894
20,128
1,160
-
-
260,400
1,283
206,245
207,528
52,872
-
21,405
74,277
(45,835)
28,442		 Designated
Funds
£
-
-
-
-
-
-
-
-
-
-
-
(2,378)
(21,405)
(23,783)
41,504
17,721		 Restricted
Funds
£
91,128
-
-
-
8,354
-
99,482
-
80,276
80,276
19,206
639
-
19,845
68,213
88,058		 Total
2020
£
199,346
130,894
20,128
1,160
8,354
-
359,882
1,283
286,521
287,804
72,078
(1,739)
-
70,339
63,882
134,221		 Total
2019
£
118,451
162,110
-
804
20,213
1
301,579
8,116
355,823
363,939
(62,360)
9,449
-
(52,911)
116,793
63,882

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities, although those of St Peter's Church, Vauxhall were transferred to another entity on 8 September 2019 (see note 10).

There are no endowment funds.

The accompanying notes form part of these financial statements.

Page 8

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH

BALANCE SHEET AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible fixed assets
1.5
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Current liabilities
Creditors payable within one year
13
Net current assets
Total assets less current liabilities
Long-term liabilities
Creditors payable after one year
14
Net assets
The funds of the charity
Restricted income funds
15, 16
Unrestricted income funds:
General fund
15, 16
Designated Funds
15, 16
Total charity funds
15, 16		 2020
£
-
44,833
44,833
34,400
93,073
127,473
(27,085)
100,388
145,221
(11,000)
134,221
88,058
28,442
17,721
134,221		 2019
£
-
46,573
46,573
26,756
57,799
84,555
(47,246)
37,309
83,882
(20,000)
63,882
69,577
(35,995)
83,211
116,793

Approved by the PCC on 29 October 2021 and signed on its behalf by:

Angus Aagaard

……………………….. Angus Aagaard Chair

The accompanying notes form part of these financial statements.

Page 9

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.1 Basis of preparation

The accounts have been prepared in accordance with the Charities Statement of Recommended Practice ("SORP (FRS 102)"), Financial Reporting Standard 102, the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The PCC meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention except for the valuation of investment assets which are shown at market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law involving both unrestricted and restricted funds. They do not include the accounts of other church groups that owe their main affiliation to another body or those that are informal gatherings of church members.

1.2 Preparation of the accounts on a going concern basis

Having reviewed the funding facilities available to the PCC, together with the expected ongoing congregational attendances and future property rental receipts, the trustees have a reasonable expectation that the PCC has adequate resources to continue its activities for the foreseeable future. Their review included the potential financial impact of the coronavirus pandemic and the possibility of future local lockdowns. In light of the latest available financial forecasts, the extensive compensatory measures already taken and the advanced plans in place to mitigate future restrictions, no material uncertainties were identified in this respect which would compromise ongoing operations.

Accordingly, the trustees continue to adopt the going concern basis in preparing the financial statements.

1.3 Income

Voluntary income and capital sources

Other income

Income from investments

Gains and losses on investments

1.4 Volunteers and donated services and facilities

Where services and facilities that would normally be purchased from its suppliers are provided to the charity as a donation, this contribution is included in the financial statements at an estimate based on the value of the contribution to the charity.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (continued)

Grants and Quota

Other expenditure

1.6 Tangible fixed assets and depreciation

Consecrated, beneficed and inalienable property

Unconsecrated land and buildings

The PCC only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors, are initially recognised at transaction value and subsequently measured at their settlement value.

Investments are a form of basic financial instrument and are stated at the market value ruling at the balance sheet date. Investment income, realised and unrealised gains and losses on investments are dealt with in the Statement of Financial Activities (see note 1.4 above).

1.9 Debtors

Rent and other debtors are recognised at the settlement amount due after any concessions or trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.10 Cash and deposits

Cash in hand and deposits held with banks include cash and highly liquid short term investments.

1.11 Creditors and provisions

Creditors and provisions are recognised where the PCC has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (continued)

1.12 Funds structure

The PCC has a number of restricted income funds which represent donations, grants or other income received by the PCC or invited by the PCC for a specific object or purpose. They may only be expended on the specific object or purpose for which they were received or invited.

Unrestricted funds are the funds of the PCC that are not subject to any restriction regarding their use and may be expended by the PCC for any purposes consistent with its objects. They include the General Fund and any funds designated by the PCC for a particular purpose or particular purposes in the future.

2
Voluntary income
Donations
Covenants & Envelope Scheme
Collections
Grants
Duchy of Cornwall
Southwark Diocese
ABS Chaplaincy contribution
Change Up Youth & children's ministry
MAP Coordinator
Westray pilgrimage
Organ Repair Fund
South London Church Fund: Father Gilbert
Legacy: Estate of Jean Vigar
St Anselm's Development
Kennington/Bethlehem Link
RW Tydeman: Ethiopiaid
Worship/Administration/Sundry
3
Income from other sources
a) Rent and hire of land and buildings
Property rentals
Use of the Churches		 General
Fund
£
43,556
8,383
750
40,800
11,333
1,800
-
-
-
-
-
-
-
-
1,596
108,218
127,814
3,080
130,894		 Designated
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Restricted
Funds
£
-
-
-
-
-
-
-
-
41,128
-
-
50,000
-
-
-
91,128
-
-
-		 Total
2020
£
43,556
8,383
750
40,800
11,333
1,800
-
-
41,128
-
-
50,000
-
-
1,596
199,346
127,814
3,080
130,894		 Total
2019
£
36,806
10,576
750
8,000
-
-
27,300
10,725
3,784
7,000
5,056
2,050
1,793
926
3,685
118,451
140,937
21,173
162,110

b) Miscellaneous income

In November 2020, the trustees of the Centenary Memorial Sunday School (CMSS) trust agreed to waive all amounts historically owed to it by North Lambeth Parish PCC, provided that certain commitments would be given. These included a contribution to the finalisation costs of the sale of a trust property and the provision of a replacement venue for activities promoting Christian education at St Anselm's, in accordance with the trust's principal object and in line with the PCC's own objectives and activities.

These commitments were duly given, precipitating the release of £20,128 previously included as a creditor due to CMSS in the PCC's accounts (note 13). This has been recognised in the current year's Statement of Financial Activities as miscellaneous income.

Page 12

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

General Designated Restricted Total Total Fund Funds Funds 2020 2019 £ £ £ £ £

a) Activities related to the objects of the Church

Parish fees
b) Fundraising events
Parish fete
Mission Giving		 1,160
-
-
-		 -
-
-
-		 -
-
8,354
8,354		 1,160
-
8,354
8,354		 804
20,213
-
20,213

5 Investment income

All investment income is represented by bank deposit interest receivable and is accounted for in unrestricted General Funds.

6 Analysis of expenditure

Costs of raising funds
Parish fete
Parish fees
Charitable activities
Property – services, repairs & management
Church – services & utilities
Church – repairs & maintenance
Quota
Chaplain, children and families minister
Clergy expenses
Curate accommodation
Youth Worker salaries and costs
Music salaries and costs
Parish expenses, education and worship
Missionary and charitable giving
Westray pilgrimage
Development Director & MAP Coordinator
Father Gilbert
Parish Coordinator
Legal & professional fees
Support costs
Governance costs
Finance costs
Total expenditure		 355
928
1,283
29,351
14,093
6,482
58,313
18,667
10,707
-
3,160
10,226
7,125
750
-
-
-
24,000
-
16,752
4,440
2,179
206,245
207,528		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
60,067
-
-
-
-
-
-
-
5,849
-
-
-
-
14,330
-
-
30
80,276
80,276		 355
928
1,283
29,351
14,093
66,549
58,313
18,667
10,707
-
3,160
10,226
7,125
6,599
-
-
-
24,000
14,330
16,752
4,440
2,209
286,521
287,804
2020
£		 7,473
643
8,116
79,212
29,154
15,434
75,471
-
9,986
490
9,108
12,056
4,478
4,749
17,976
23,895
6,500
21,000
-
37,871
5,640
2,803
355,823
363,939
2019
£

This is stated after charging:

Independent examination fee

1,110 1,575

Page 13

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Staff costs

Staff costs
Wages and salaries
Social Security costs
Pension contributions		 General
Fund
£
42,667
3,953
968
47,588		 Designated
Funds
£
-
-
-
-		 Restricted
Funds
£
-
-
-
-		 Total
2020
£
42,667
3,953
968
47,588		 Total
2019
£
61,279
4,651
2,275
68,205

The average number of employees during the year was as follows:

Church activities:
Youth workers
Music directors
Development Director & MAP Coordinator
Parish Coordinator
Parish office		 2020
Number
-
1
1
1
-
3		 2019
Number
-
1
1
1
1
4

During the year, one trustee (2019: one trustee) received payments for services – see note 17. Five trustees (2019: five) were reimbursed for out-of-pocket expenses totalling £11,587 (2019: £10,622), made up as follows:

Clergy expenses – hospitality, telephone, travel & cleaning
Parish expenses – education, mission & worship
Parish expenses – other
Property services and repairs – St Peter's House		 2020
£
10,567
252
768
-
11,587		 2019
£
9,986
-
236
400
10,622

9 Taxation

Due to its charitable status, the PCC is a tax-exempt entity. The members of the PCC are not aware of any matters which might prejudice the tax status of the PCC.

10 Discontinued activities

Income and expenditure in relation to St Peter’s Church, Vauxhall was transferred to Holy Trinity Clapham (“HTC”) under the leadership of Michael John with effect from 8 September 2019 under HTC’s Resourcing Church initiative and has been included to the date of effective transfer in these financial statements. In anticipation of the transfer, St. Peter’s House, Vauxhall was leased to The South London Church Fund & Southwark Diocesan Board of Finance with effect from 1 September 2019 under a full repairing and insuring lease.

Page 14

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Fixed asset investments
Quoted investments:
Market value at 1 January 2020
Disposals
Gains on investment assets:
Interest or dividends reinvested
Net realised investment gains
Net unrealised investment (losses)/gains
Market value at 31 December 2020
Historical cost at 31 December 2020		 £
£
46,573
-
848
-
(2,588)
(1,740)
44,833
29,492
2020		 £
£
108,545
(71,421)
1,779
4,790
2,880
9,449
46,573
29,492
2019		 £
£
108,545
(71,421)
1,779
4,790
2,880
9,449
46,573
29,492
2019
46,573
29,492

The following investments represent more than 5% of the net assets of the PCC at 31 December 2020:

Holding
CCLA Investment Fund
M&G Charifund Accumulation Shares
66
CBF Accumulation Shares
119
CCLA Investment Fund
CBF Deposit Account
CofE Deposit Fund
12
Debtors
Rent debtors
Other debtors
Tax recoverable
The Saint Peter's Vauxhall Mission Initiative
Prepayments and accrued income
13
Creditors: amounts falling due within one year
South London Church Fund loan (note 14)
The Centenary Memorial Sunday School
Rent deposits
Parish fees
Other creditors
Other taxes & social security
Accruals		 Cost
Market value
£
£
5,178
16,067
1,553
5,915
21,107
21,197
1,654
1,654
29,492
44,833
2020
2019
£
£
-
-
228
-
16,207
7,496
348
6,204
17,617
13,056
34,400
26,756
12,000
5,000
-
28,129
200
200
5,458
4,530
3,750
-
3,827
2,879
1,850
6,508
27,085
47,246

Page 15

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14
Creditors payable after one year
South London Church Fund loan
Analysis of loan
Repayable within one year
Repayable between one and five years
Included in liabilities falling due within one year (note 13)		 2020
£
11,000
12,000
11,000
23,000
(12,000)
11,000		 2019
£
20,000
5,000
20,000
25,000
(5,000)
20,000

The PCC received a loan from the South London Church Fund in September 2019. The loan is unsecured, interest free and is repayable in 25 equal instalments which were due to commence in August 2020; actual repayments were postponed until November 2020 in light of the coronavirus pandemic.

15 Analysis of charitable funds

Analysis of general fund movements:

General Fund
Clergy Discretionary Fund		 Balance at
1 January
2020
£
(46,109)
274
(45,835)		 Incoming
resources
£
258,650
1,750
260,400		 Resources Investment
expended gains/(losses)
£
£
(206,671)
-
(857)
-
(207,528)
-		 Balance at
31 December
Transfers
2020
£
£
21,405
27,275
-
1,167
21,405
28,442

The General Fund receives its income from various sources, including donations through the planned giving scheme, loose cash collections, rent income, income from hire of the buildings and from certain social activities. The fund is used to cover the PCC's normal expenses including the diocesan “Fairer Shares” quota assessment, clergy and lay workers' expenses, service and ministry costs, fundraising and governance, but not costs primarily associated with the buildings.

The Clergy Discretionary Fund is available to members of the clergy to provide support to parishioners and other members of the community in cases of financial hardship.

Analysis of designated fund movements:

General Reserve
Parish Reserve
Fabric Reserve
Parish Development Fund
Parish Contingency Fund
Standing Committee Capital
Projects Fund		 Balance at
1 January
2020
£
-
18,445
-
1,262
392
21,405
41,504		 Incoming
resources
£
-
-
-
-
-
-
-		 Resources Investment
expended gains/(losses)
£
£
-
-
-
(2,378)
-
-
-
-
-
-
-
(2,378)		 Balance at
31 December
Transfers
2020
£
£
-
-
-
16,067
-
-
-
1,262
-
392
(21,405)
-
(21,405)
17,721

Page 16

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Analysis of charitable funds (continued)

Analysis of designated fund movements (continued):

The designated General Reserve was established by the members of the PCC to cover unexpected expenditure and any annual deficit.

The Parish Reserve may be used to cover costs associated with maintaining and running the ministry of North Lambeth Parish.

The Fabric Reserve Fund may be used for the care, conservation, repair and development of all Anglican churches in North Lambeth Parish.

The Parish Development Fund was established to cover surveys, architects fees, legal fees and project management to get to the planning permission stage of the development of St Anselm's and St Peter's churches.

The Parish Contingency Fund is held to cover any shortfall on the bank current account.

Analysis of restricted fund movements:

Deaconess Pearson Smith
Salamanca House
Earmarked Funds:
Church Organ Repair Fund
St Ansel's Development Fund
Kennington Kitchen
Mission Giving
Development Director Fund
Westray pilgrimage
Father Gilbert
Robes Project		 Balance at
1 January
2020
£
5,366
21,108
23,912
8,496
96
-
7,086
994
500
655
68,213		 Incoming
resources
£
-
-
41,128
50,000
-
8,354
-
-
-
-
99,482		 Resources Investment
expended gains/(losses)
£
£
-
549
-
90
(60,067)
-
(14,345)
-
(15)
-
(5,849)
-
-
-
-
-
-
-
-
-
(80,276)
639		 Balance at
31 December
Transfers
2020
£
£
-
5,915
-
21,198
-
4,973
-
44,151
-
81
9,235
11,740
(7,086)
-
(994)
-
(500)
-
(655)
-
-
88,058

The Deaconess Pearson Smith Fund is restricted to supporting training needs for women's ministry.

The Salamanca House Fund is restricted to offering bursaries to help with local educational needs.

Earmarked Funds represent various donations which were received towards a variety of projects during the year and the majority of these were paid over to the respective causes. Some funds have been retained towards ongoing projects which are continuing into the next financial year; after consultations with parishioners, these have been consolidated into a single Mission Giving Fund for distribution at the discretion of the congregation.

Page 17

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16 Analysis of net assets between funds

Analysis of net assets between funds
General Funds:
General Reserve
Clergy Discretionary
Designated Funds:
General Reserve
Parish Reserve
Fabric Reserve
Parish Development
Parish Contingency
Standing Committee Capital Projects Fund
Restricted Funds:
Deaconess Pearson Smith
Salamanca House
Church Organ Repair Fund
Development Director Fund
Westray pilgrimage
St Ansel's Development Fund
Other Earmarked Funds		 Investments
£
-
-
-
16,067
-
1,262
392
-
5,915
21,198
-
-
-
-
-
44,834		 Current
assets
£
77,101
1,167
-
-
-
-
-
-
-
-
4,973
-
-
44,151
81
127,473		 Current
liabilities
£
(38,085)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(38,085)		 Total
£
39,016
1,167
-
16,067
-
1,262
392
-
5,915
21,198
4,973
-
-
44,151
81
134,222

17 Commitments and contingent liabilities

There were no commitments or contingent liabilities at 31 December 2020 (2019: £nil).

18 Related party transactions

One trustee, Esther Ketskemety, has been paid as part of the PCC's payroll during the year in her role as Parish Coordinator. The members of the PCC have confirmed that they have had regard to the guidance issued by the Charity Commission regarding paying trustees for services. The members of the PCC, as a body, have decided that these services are beneficial to the PCC and have agreed that it is in the PCC's best interests to meet these payments.

Page 18

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

19 Comparative figures by fund type - Income and expenditure

a) Consolidated Statement of Financial Activities

Notes
INCOME
Income from charitable activities
Donations and grants
16 b)
Activities for raising funds
Investment income
Total income
EXPENDITURE
Cost of raising funds
Expenditure on charitable activities
16 c)
Total expenditure
Net income/(expenditure) before
transfers and investment gains
Gains on investments
17
Transfers between funds
17
Net movement in funds for the year
Reconciliation of funds
Total funds brought forward
17
Total funds carried forward		 General
Funds
£
76,412
227,700
-
304,112
8,588
308,236
316,824
(12,712)
-
(25,518)
(38,230)
2,235
(35,995)		 Designated
Funds
£
-
-
-
-
-
51,821
51,821
(51,821)
(3,994)
19,018
(36,797)
120,008
83,211		 Restricted
Funds
£
35,840
-
-
35,840
-
51,884
51,884
(16,044)
241
6,500
(9,303)
78,880
69,577		 Total
2019
£
112,252
227,700
-
339,952
8,588
411,941
420,529
(80,577)
(3,753)
-
(84,330)
201,123
116,793

Page 19

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 DECEMBER 2020

19 Comparative figures by fund type - Income and expenditure (continued)

b) Donations and grants

Donations
Covenants & Envelope Scheme
Collections
Grants
Duchy of Cornwall
MAP Coordinator
Organ Repair Fund
Westray pilgrimage
Worship/Administration/Sundry		 General
Fund
£
39,736
22,419
750
-
-
13,507
76,412		 Designated
Funds
£
-
-
-
-
-
-
-		 Restricted
Funds
£
-
-
-
19,230
501
14,945
1,164
35,840		 Total
2019
£
39,736
22,419
750
19,230
501
14,945
14,671
112,252

c) Expenditure on charitable activities

Charitable activities
Property – services, repairs & management
Church – services & utilities
Church – repairs & maintenance
Quota
Clergy expenses
Associate Priest accommodation
Youth Worker salaries and costs
Music salaries and costs
Parish expenses, education and worship
Missionary and charitable giving
Development Director & MAP Coordinator
Pastoral Assistant
Support costs
Governance costs
Finance costs		 General
Fund
£
35,858
37,339
29,293
81,400
12,250
5,875
21,804
17,741
4,260
3,730
-
8,754
42,468
5,490
1,974
308,236		 Designated
Funds
£
51,821
-
-
-
-
-
-
-
-
-
-
-
-
-
51,821		 Restricted
Funds
£
-
3,568
2,625
-
8,439
-
4,000
1,505
-
5,102
26,399
246
-
-
-
51,884		 Total
2019
£
87,679
40,907
31,918
81,400
20,689
5,875
25,804
19,246
4,260
8,832
26,399
9,000
42,468
5,490
1,974
411,941

Page 20

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Comparative figures by fund type - Analysis of charitable funds

Balance at
1 January
2019
£
a) Analysis of general fund movements:
General Fund
(2,839)
Clergy Discretionary Fund
5,074
2,235
b) Analysis of designated fund movements:
General Reserve
6,595
Parish Reserve
52,334
Fabric Reserve
33,244
Parish Development Fund
1,242
Parish Contingency Fund
385
St Peter's Parking
26,208
120,008
c) Analysis of restricted fund movements:
Deaconess Pearson Smith
4,303
Salamanca House
20,790
Earmarked Funds:
Church Organ Repair Fund
24,237
St Peter's Roof Repair Fund
3,568
Development Director Fund
10,850
Kennington Bethlehem Link
4,365
Marquee Project
5,439
Parish Assistant
246
Junior Choir "Young Voices"
1,320
Westray pilgrimage
-
Other
3,762
78,880
Total funds
201,123		 Incoming
resources
£
301,742
2,370
304,112

-
-
-
-
-
-
-
-
-
501
-
19,230
-
-
-
-
14,945
1,164
35,840
339,952		 Resources Investment
expended gains/(losses)
£
£
(310,354)
-
(6,470)
-
(316,824)
-
-
-
-
(4,469)
-
463
-
8
-
4
(51,821)
-
(51,821)
(3,994)
-
80
-
161
(625)
-
(3,568)
-
(26,399)
-
(3,601)
-
(5,439)
-
(246)
-
(1,505)
-
-
(10,501)
-
(51,884)
241
(420,529)
(3,753)		 Balance at
31 December
Transfers
2019
£
£
(25,518)
(36,969)
-
974
(25,518)
(35,995)
(6,595)
-
-
47,865
-
33,707
-
1,250
-
389
25,613
-
19,018
83,211
-
4,383
-
20,951
-
24,113
-
-
-
3,681
-
764
-
-
-
-
185
-
-
14,945
6,315
740
6,500
69,577
-
116,793

Page 21

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF NORTH LAMBETH NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Comparative figures by fund type -Analysis of net assets between funds

General Funds:
General Reserve
Clergy Discretionary
Designated Funds:
General Reserve
Parish Reserve
Fabric Reserve
Parish Development
Parish Contingency
Restricted Funds:
Deaconess Pearson Smith
Salamanca House
Church Organ Repair Fund
Development Director Fund
Kennington Bethlehem Link
Westray pilgrimage
Other		 Investments
£
-
-
-
47,865
33,707
1,250
389
4,383
20,951
-
-
-
-
-
108,545		 Current
assets
£
(6,425)
974
-
-
-
-
-
-
-
24,113
3,681
764
14,945
740
38,792		 Current
liabilities
£
(30,544)
-
-
-
-
-
-
-
-
-
-
-
-
-
(30,544)		 Total
£
(36,969)
974
-
47,865
33,707
1,250
389
4,383
20,951
24,113
3,681
764
14,945
740
116,793

Page 22