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← The Parochial Church Council Of The Ecclesiastical Parish Of Hornchurch St.andrew

2023-12-31-accounts

HORNCHURCH PAROCHIAL CHURCH COUNCIL

TRUSTEES’ REPORT AND ACCOUNTS

For the year ended 31 December 2023

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Trustees' Report to the Members of the Ecclesiastical Parish of Hornchurch St Andrew

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

Reference and Administrative Information

The Parochial Church Council of the Ecclesiastical Parish of Hornchurch St Andrew (“PCC”) was registered on 11 March 2010. The PCC is a body corporate governed by The Parochial Church Councils (Powers) Measure (1956) as amended and church representation rules. The Parish of Hornchurch comprises the four churches of St Andrew, St George, St Matthew and Messy Church, which forms part of the Diocese of Chelmsford within the Church of England.

Registered Charity number

1134813

Principal address

222 High Street Hornchurch Essex RM12 6QP

Governance

The Trustees who served during the year and at the date of this report were:

Rev’d K Wylie Rev’d Dr M Hayward Rev’d L Bewick Mrs S Hill (from July 2023) Rev’d B Baker (Co-opted) Miss A Jarrett Mrs C Beech Mrs J John Mrs P Bromhall Mr A Losq (to June 2023) Mrs J Brooks Mrs D McCarren Mr D Cast (to June 2023) Mr N McCarren (Vice-Chair) Mrs P Clark (Secretary) Mrs M Powell Mr C Cox (to May 2023) Mr J Shearmur Mrs S Cox Mrs C Sherratt Mr R Dines Rev’d M Smeed (from July 2022) Mrs K Dunstan Mr J Speller (to May 2023) Rev’d S Groombridge (Co-opted) Mrs A Tansley Mr K Green Mrs C Withers

Members of the PCC are either ex officio or elected by the Annual Parochial meeting in accordance with the Church Representation Rules or are co-opted. All Church attendees are encouraged to register on the Electoral Roll and stand for election to the PCC. Newly elected Trustees are provided with a copy of the Church of England pamphlet “Trusteeship – an introduction to members”.

The Standing Committee, comprising the Incumbent, the Wardens, the Treasurer and the PCC Secretary, can be called upon to take decisions on matters requiring immediate attention. Such decisions are later ratified by the PCC.

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Management

Members of the management team at the date of this report were:

Incumbent Rev’d K Wylie Associate Vicar Rev’d L Bewick Associate Priest Rev’d Dr M Hayward Curate Rev’d M Smeed Retired Ministers Rev’d B Baker Rev’d S Groombridge Readers Mrs P Bromhall Mrs C Sherratt Authorised Local Preachers Mr M Cornish Miss A Jarrett Messy Church Co-ordinator Mrs K Dunstan Choirmaster Mr W Brooks Organist Mr A Losq Church Wardens Mr N McCarren Mr J Shearmur PCC Secretary Mrs P Clark Treasurer (Vacant) Assistant Treasurer Mr R Sherratt Deanery Synod Representatives Mrs J Brooks Mr R Dines Mrs K Dunstan Mrs S Hill

Safeguarding representatives (Young people) Mrs J Whitehead (Vulnerable adults) Mrs L Girkin

Bankers and Professional Advisers

Bankers

Barclays Bank PLC Leicester LE87 2BB

CCLA Investment Management Ltd One Angel Lane London EC4R 3AB

Independent Examiner Steven Lescott F.C.C.A. Devonports LAS Incorporated Financial Accountants 10 Station Court Station Approach Wickford, Essex SS11 7AT

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Statement of Trustees’ Responsibilities

The law applicable to charities in England and Wales, the Charities Act 2011 and the Accounting and Reporting by Charities: Statement of Recommended Practice (“SORP”) applicable to charities preparing their accounts in accordance with Charity SORP (FRS102) small charities, requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the Trustees are required to –

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ensure that the financial statements comply with applicable law. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Aim and Purpose

The PCC has the responsibility of co-operating with the incumbent, the Reverend Ken Wylie, in promoting in the Ecclesiastical Parish the whole mission of the Church - pastoral, evangelical, social and ecumenical. It also has maintenance responsibilities for the churches and allied premises within the PCC area.

Objectives and Activities

The PCC is committed to enabling as many people as possible to worship at our churches and to become part of our Parish community. The PCC maintains an overview of worship throughout the Parish and makes suggestions on how our services can involve the many groups that live within our parish. Our services and worship put faith into practice through prayer and scripture, music and sacrament.

Public Benefit

When planning our activities for the year, we have considered the Charity Commission’s guidance on public benefit and, in particular, the supplementary guidance on charities for the advancement of religion. In particular, we try to enable ordinary people to live out their faith as part of our Parish community through:

The annual report describes the activities undertaken by the PCC during the year to further, in the opinion of the Trustees, its charitable purposes for public benefit.

The Trustees are of the opinion that they have complied with the duty in section 17 of the Charities Act 2011.

Electoral Roll

In December 2023, there were 319 Parishioners on the Church Electoral Roll, of whom 177 were resident and 142 were not resident within the Parish Boundary. The total represents an increase of nine in the figure quoted in the Annual Report for December 2022.

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Review of the Year

Every year has its standout events and its high and lows. In it all we have continued to trust in the Lord for all our needs and will do so into the year ahead.

It is appropriate to begin this year with thanks: thanks to God for giving us all we need, for being our hope and inspiration; and thanks to so many people who ensure that the parish operates in the way that we believe the Lord is calling us to.

As always there are far too many people to individually thank but who, in exercising their ministries, allow us to bring the Good News to our wider community. In regard to regular services, we rely upon those stewarding and welcoming, serving refreshments, getting the services heard and seen through AV provision, leading our worship in singing and playing instruments, providing for our younger members in Sunday School. There is help in the administration of the business of the parish not least in the role of wardens and members and officers of the PCC.

And there are those who do so much in our various expressions of fellowship and worship not limited to the buildings expressed in Eco-Church, Messy Church, Bullseye and in simply being welcomers and carers to one another ensuring that we know what is going on for our community. And we have teams who ensure occasional visitors are put at ease to be able to experience the church, whether that be school and student groups or people attending for a baptism, funeral or wedding. Or who take up the invitation to be prayed for by our Healing Prayer Team.

This is not forgetting those who are active in our community through our Toddler Groups, the Bridge and Table Top Fun. We ask forgiveness for those who, in this moment of writing, we have omitted. We thank you all who are committed to our shared ministry.

We see many people in a multitude of teams and places. All are valued and yet there is always a need for more folk stepping forward or being invited into exercising the skills they have. We have the examples of many who lead our worship whose primary calling is to their workplace or life outside “church” and who also bless us with their ministry within church settings.

Throughout the year we continued in our established patterns of services, though there was still room to bring back and initiate new things. In terms of worship, we have returned to a weekly Sunday evening service at St Andrew’s with a mixture of styles. The Bridge has moved into the large hall at North Street and has been blessed in providing for more people and having the space to do so much more as well in terms of activities and visits which included a Christmas visit from Yr2 at Scotts Primary School who gave a faithful musical rendering of the Christmas story. At St Matthew’s, Table Top Fun has been a great addition acting as an after-school club for children and carers offering a place of games and gathering on a Friday evening at the end of busy school weeks.

Other notable events and activities marked through the year included:

Quite a year that we can celebrate in and rejoice that God has been with us in all that we do. A reminder also that, while we do much, there is always more that we could do, not least in terms of our discipleship. We will do well in this by encouraging one another in our worship and sharing our stories of faith and development.

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Review of the Year (continued)

The fourth Church within the Parish of Hornchurch, Messy Church, provides space for all-ages to encounter God, discover Jesus and the Holy Spirit, through creativity , hospitality and celebration .

Messy Church in Hornchurch is now 12 years old, although the format and venues have changed over the year we continue to meet regularly in the hall and/or grounds of St Andrew’s Church providing opportunities for multi-generational interaction to reflect together, usually outdoors, on the wonders of God’s creation and explore the Christian Faith through activities, crafts, games, prayer, worship and refreshments. We helped with the planting of trees in the perimeter hedging to support wildlife and local biodiversity and a community herb garden was created during our Pentecost Service to share herbs with people who visit the church grounds.

We joined in organising the Parish Bring and Share Community Picnic for the Coronation Big Lunch on Sunday 7th May; and raised funds for two of Tearfund’s Toilet Twinning global water and sanitation programme. The all-age Light Party is an annual opportunity for Messy Church and the Parish to share God’s Light and Love at the end of October. Messy Church in Hornchurch continues to support the wider Messy Church organisation and were invited to lead a Holy Week activity at St Paul’s Messy Cathedral event.

The Well was started at St Matthew’s Church in October 2022 by a group of like-minded people who are very aware of the need for a service that recognises and celebrates disabilities and the special needs within the parish; there is an average attendance of roughly 20-25 all age worshippers.

The ministry of music is always well received. Choral Evensong is now back as a regular service on the first Sunday of the month, and over the past year included services for the Coronation, a Blue Christmas service, and Advent Carols. In addition, the choir sang at the annual St. Francis Hospice Concert helping to raise much needed funds for the Hospice. The annual “Nine Lessons and Carols” was particularly well received by the congregation. On Palm Sunday, the choir performed Faure’s “Requiem”. The bellringers had a busy year, with 46 Quarters, 4 Peals and numerous other performances, including a Quarter for the Coronation of King Charles III. We are grateful to everyone who shares their gift through singing, playing and bellringing,

The A-V system team is to be congratulated in its significant contribution to the mission of the parish through streaming from St Andrew’s to those at home who cannot attend.

Young people

The Parish of Hornchurch hosts a wide range of groups for Young People, providing for youngsters from babies to eighteen years. There are currently twenty-five groups, including five organised directly by the Church. The other twenty are units of Uniformed Organisations: one Girl’s Brigade unit; one Scout Group, with ten sections - three Beaver Colonies, four cub packs and three scout troops; and nine Girlguiding units – two of Rainbows, five of Brownies and two of Guides.

These groups are all led by volunteers, to whom the Parish is grateful for their dedication and for the time they spend in planning and running programmes and activities for their groups, many throughout the year: without their leadership, these groups would not be able to run. Further details of the activities of these groups can be found in the separate annual youth report presented to the APCM and available from the Parish Office.

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Review of the Year (continued)

Volunteers

The Parish of Hornchurch is dependent on the huge number of people involved in church activities in the area. Volunteers undertake significant roles in the activities of the PCC, ranging from administration, such as assisting with financial recording; leading mother and baby groups; youth activities; prayer, bereavement and support networks; as well as worship. The number of volunteers involved during the year, daily, weekly, monthly or annually would be in the region of 100, contributing an average of around 2½ hours per week.

The service provided to our local community through church volunteering has a significant impact on people's relationship to the Church particularly at times of crisis. Within this context, the PCC greatly values the considerable time given by all the volunteers across the Parish in pursuit of our mission.

Management of the charity

The full PCC met six times in 2023. The average attendance was 64%. The Standing Committee met regularly, at least monthly, during the year to discuss policy and financial matters. The key matters arising were presented for consideration at the full PCC meetings.

Pay policy for staff

The PCC employs twelve staff (eleven of whom are part-time), working in the roles of cleaner, caretaker, office administration, financial administration and gardener, as well as remunerating the organist. Pay is reviewed annually in the Spring and increased according to our means and to ensure these are in excess of minimum wages rates at that time.

The PCC has participated in the NEST pensions scheme from 1 March 2016, 10 months earlier than the statutory staging date. The PCC’s contributions have been set at 3% with effect from that date.

The PCC members (who are trustees of the charity) give their time freely and received no remuneration for the year. Details of related party transactions are disclosed in note 10.

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Review of the Year (continued)

Financial Review

During the year, the income and expenditure on unrestricted funds (general and designated) before investment gains were as follows:

Unrestricted funds Unrestricted funds 2023 Unrestricted funds Unrestricted funds 2022
General Designated Total General Designated Total
£ £ £ £ £ £
Income 310,584 4,670 315,254 301,093 2,817 303,910
Expenditure 363,402 1,195 364,597 301,373 1,504 302,877
Net (expenditure)/income (52,818) 3,475 (49,343) (280) 1,313 1,033

General income, at £310,584 (2022: £301,093), increased by £9,501 (Note 2). Planned giving increased by £4,513, while collections at all services increased, by £2,091. Hall hires decreased by £1,240. Income from investments was broadly similar to last year. The PCC received with thanks a grant of £2,280 towards its Energy Costs from the Chelmsford Diocesan Board of Finance.

General expenditure of £363,402 (2022: £301,373) increased by £62,029 (Note 3), arising not only from the increase in general income, but also from decisions taken to use reserves to undertake necessary maintenance and administration without further delay.

A change in policy in assessing Parish Share led to a reduction of £8,396 in the 2023 charge whilst, in a further policy change, the rate paid for the use of PCC property to house stipendiary clergy was increased to a commercial rate, which benefited the PCC £9,300 in the year (continuing).

It is not easy to put the overall expenditure on the various projects undertaken during the year, though it is hoped that these brief notes and rounded figures put the deficit for the year into some context:

Project Brief description £’000
St Matthew’s Church &
Fellowship Hall		 Fencing; Roof; Ceiling; Interior decoration 26
PCC Legal advice on leases; consultancy advice,
software advice		 11
St George’s Church Replacement fire doors 3
St Andrew’s Church Architect’s drawings of roof. Preliminary
assessment of cost of repairing area from which
copper was stolen in 2011		 3
St Andrew’s Parish Office Repairs to Parish Office roof 8
85 Kenilworth Gardens Maintenance of property before re-letting 6
Total of “project” expenditure 57

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Review of the Year (continued)

Financial Review (continued)

Expenses have been kept under scrutiny by the Standing Committee.

The PCC is grateful to all those parishioners who were able to increase their giving in 2023.

It remains vitally important that the Parish continues to consider the stewardship of its financial resources and how it might increase its planned giving income in future years.

Reserves Policy

It is PCC policy to maintain “free” reserves (that is, unrestricted reserves which are not designated for a specific purpose) which are equivalent to two to three months of average unrestricted payments, which is currently equivalent to a reserve of between £55,000 and £82,000, in order to smooth out fluctuations in cash flow and to meet unexpected items of expenditure.

At 31st December 2023, “free” reserves for this purpose on the unrestricted general fund were exhausted by the prior years’ deficits and the designated legacy fund held £66,000, below the top of this range. However, the £120,000 unrestricted bequest received in 2019 (and reduced this year by £26,400) has been earmarked by the PCC as an emergency fund against the potential future deficits on unrestricted general funds caused by a reduction in income which might arise from the economic uncertainties referred to in the financial review and any significant expenditure which might arise on St Andrew’s church.

The remaining designated funds are held: to prepare for the periodic major servicing of the organ; and to support the work of the committees who organize, on behalf of the PCC, Summer Safari, the Magazine, the Bookstall and Messy Church. Details of unrestricted funds, including those which are designated, are given in note 8 (a) to the financial statements. Details of restricted funds, including the purposes for which they are held, and endowment funds are given in notes 8 (b) and 8 (c) respectively.

The future: 2024 and the impact of the current economic climate

The outlook for Britain’s economy in 2024 and 2025 is very uncertain, and in particular, the impact of continuing high levels of inflation and interest rates.

The designation of legacies and the bequest will allow these funds to be held in reserve to further the mission of our Parish in 2024 and beyond.

The Annual Report was approved by the Parochial Church Council on15 August 2024 and signed on 28 August 2024 on its behalf by:

The Reverend Kenneth Wylie

Chair of Council, Vicar

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Independent Examiner's Report to the Trustees of the Parochial Church Council Of the Ecclesiastical Parish of Hornchurch St Andrew

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2023 which are set out on pages 10 to 22.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records, or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed

Steven W Lescott FCCA

Chartered Certified Accountant

10 Station Court Station Approach Wickford Essex SS11 7AT

28 August 2024

9

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Statement of Financial Activities – Year ended 31 December 2023

Note
Income and endowments
Voluntary income
2(a)
Church activities
2(b)
Income from investments
2(c)
Activities for generating
funds
2(d)
CDBF Energy Grant
2(d)
Total income
Expenditure on
Church activities
3(a)
Fundraising costs
3(b)
Total expenditure
Net income/(expenditure)
before investment
gains/(losses)
Transfers between funds
Other recognised
gains/(losses)
Gains/(losses) on
revaluation of fixed assets
Net income/(expenditure)
Reconciliation of funds:
Balances Brought Forward
1 January 2023
Balance Carried Forward
31 December 2023		 Unrestricted
General
Fund
£
159,471
86,234
59,177
3,422
2,280
310,584
362,756
646
(363,402)
(52,818)
52,818
-
-
-
-		 Unrestricted
Designated
Funds
£
2,567
439
-
1,664
-
4,670
1,195
-
(1,195)
3,475
(26,409)
(830)
(23,764)
1,796,477
1,772,713		 Restricted
Funds
£
1,623
18,261
-
-
-
19,884
21,803
-
(21,803)
(1,919)
(26,409)
4,562
(23,766)
194,851
171,085		 Endowment
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
10,654
10,654		 Total
2023
£
163,661
104,934
59,177
5,086
2,280
335,138
385,754
646
(386,400)
(51,262)
-
3,732
(47,530)
2,001,982
1,954,452		 Total
2022
£
156,024
111,360
52,097
4,088
-
323,569
321,400
847
(322,247)
346
-
(5,299)
(4,953)
2,006,005
2,001,982

The notes on pages 12 to 22 form part of these accounts.

The detailed comparative figures, showing the Statement of Financial Activities for the year ended 31 December 2022, are set out in note 12.

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council For the year ended 31 December 2023

Balance Sheet – 31 December 2023

Note
FIXED ASSETS
Tangible assets
5(a)
Investments
5(b)
CURRENT ASSETS
Debtors and prepayments
6
Short term deposits
Cash at bank and in hand
LIABILITIES
Creditors: amounts falling due
within one year
7
Net Current Assets
TOTAL ASSETS LESS CURRENT LIABILITIES
TOTAL NET ASSETS
FUNDS
Unrestricted funds
8(a)
Restricted funds
8(b)
Endowments funds
8(c)
TOTAL FUNDS
9		 2023
£
1,577,500
41,109
1,618,609
33,376
245,491
104,013
382,880
(47,037)
335,843
1,954,452
1,954,452
1,772,713
171,085
10,654
1,954,452		 2022
£
1,577,500
37,377
1,614,877
37,049
292,433
104,530
434,012
(46,907)
387,105
2,001,982
2,001,982
1,796,477
194,851
10,654
2,001,982

The notes on pages 12 to 22 form part of these accounts.

Approved by the Parochial Church Council on 15 August 2024 and signed on 28 August 2024 on its behalf by:

Rev’d Kenneth Wylie Chair of Hornchurch Parochial Church Council

Mr Nigel McCarren Trustee

11

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements

1. Accounting policies

a. Accounting Convention

The PCC is a public benefit entity within the meaning of FRS102. The financial statements have been prepared under the Charities Act 2011 and in accordance with the Church Accounting Regulations 2006 governing the individual accounts of PCCs, and with the regulations’ “true and fair view” provisions, together with FRS102 (2016) as the applicable accounting standards and the 2016 version of the Statement of Recommended Practice, Accounting and Reporting by Charities (“SORP (FRS102)”). The financial statements have been prepared under the historical cost convention as modified by the inclusion of investments at fair value.

The SORP (FRS102) requires expenditure to be reported on an activity basis to show how the charity has used its resources to further its charitable aims for the public benefit. However, as the charity is below the charity audit level threshold, it has opted to report expenditure by the nature of the expenditure rather than on an activity basis, as permitted by section 4.27 of SORP.

The Financial Statements include all transactions, assets and liabilities for which the PCC is liable in law. They do not include the accounts of church groups that owe their affiliation to another body, nor those which are informal gatherings of church members.

b. Funds Accounting

Funds held by the PCC are:

Unrestricted – these represent income funds which can be used for general purposes of the PCC purposes, including amounts designated by the PCC for fixed assets for its own use or for spending on a future project and which are therefore not included in its ”free reserves” as disclosed in the trustees’ report.

Restricted – These are funds that must be spent on the restricted purposes for which they were given: (i) income from trusts or endowments which can be expended only on those objects specified in the terms of the trust or bequest; (ii) donations or grants received for a specific purpose or invited by the PCC for a specific object.

Endowments – Unless specified otherwise when the endowment was established, the income generated by these funds can be used for restricted or unrestricted purposes but the trust capital must be retained permanently.

c. Income and endowments

Recognition of income and endowments

These are included in the Statement of Financial Activities (SOFA) when: the PCC becomes legally entitled to the use of the resources; and the inflow of economic benefit is probable; and the monetary value can be measured with sufficient reliability. Income from events, etc., is reported before any related costs that may have been deducted from the gross proceeds.

Grants and donations

Grants and donations are included in the SOFA when any preconditions preventing their use by the PCC have been met. For collections and planned giving this is when the funds are received.

Gift Aid Tax claims, etc., on cash donations

Gift Aid and other tax claims are included in the SOFA at the same time as the cash donations to which they relate.

Income from Investments

Dividends are accounted for when due and payable. Interest entitlements are accounted for as they accrue. Gains and Losses on Investments

Realised Gains or Losses are recognised when the investments are sold.

Unrealised Gains and Losses are accounted for on revaluation at bid value as at 31 December of the year of account. Rental income

Rental income from lettings is recognized when the rental is due.

d. Expenditure and liabilities

Liabilities are recognized as soon as there is a legal or constructive obligation and settlement is probable and quantifiable.

Grants

Grants and Donations are recognised when paid or when awarded where the award constitutes a binding obligation on the PCC. Church Activities

The Diocesan Parish Share is accounted for when paid. Any contribution deemed to be unpaid at 31 December is not provided for in these accounts.

12

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

1. Accounting policies (continued)

Consecrated and Benefice Property is excluded from the Accounts by S.10 (2) (a) and (c) of The Charities Act 2011. Moveable church furnishings are not included in the accounts unless sufficient cost information is available but all items are included in the Church’s inventory.

All expenditure on consecrated or benefice buildings and other fixed assets costing under £1,000 are written off in the year they are incurred.

Depreciation

Depreciation is calculated to write down the cost of tangible fixed assets, excluding freehold buildings, over their expected useful lives. The rates applicable are:

Land Nil Buildings Nil* Fixtures & Fittings 25% Straight Line Computer Equipment 30% Straight Line

*No depreciation is provided on freehold buildings as the currently estimated residual value of the properties is not less than their carrying value and the remaining useful life of these assets currently exceeds 50 years, so that any depreciation charges would not be material. An impairment review is carried out annually and any resultant loss identified in expenditure for the year.

f. Current Assets

Amounts owing to the PCC at 31 December for fees, rents or other income are shown as debtors. This figure would be reduced by any provision deemed necessary to cover bad or doubtful debts

Short Term Deposits include cash held on deposit with CBF Church of England Funds or with Barclays Bank.

g. Donated services, goods and facilities

Donated services, goods or facilities are included in incoming resources (and at the same time in resources expended) at the estimated fair value of the services, goods or facilities received.

h. Fees collected by the PCC in an agency capacity

A proportion of the fees collected by the PCC for weddings and funerals is considered under SORP to be collected by the PCC as an intermediary and these fees do not count towards PCC income and should not be included in the PCC’s financial statements if the money is paid over in full directly to those involved. Such fees include the fees belonging to the Diocesan Board of Finance and those collected for the services, for example, of bell ringers, organists and vergers. Similarly, the PCC will from time to time collect money for other charities in a public place or in church services; under SORP, these monies are also considered to be collected by the PCC as agent for the charity concerned and are not included in the financial statements. Reference is made to these collections in the Annual Report.

i. Going Concern

The trustees have prepared the accounts on a going concern basis and, having regard to a period exceeding twelve months after the balance sheet date, are satisfied that this basis continues to be appropriate.

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Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

2. Income and endowments

(a)
Voluntary income
Planned giving
Collections at all services
Donations and appeals
Income tax recoverable
Legacies
(b)
Income from church activities
Letting of Church halls
Fees from weddings and funerals
Summer Safari
Messy Church
Grant – Churchyard Trust (note 4)
(c)
Income from investments
Dividends and interest
Letting of houses
Other letting income
(d)
Activities for generating funds
Grants and Insurance claims
Fetes, bazaars and other events
Parish magazine advertising
Bookstall
Total Income*		 Unrestricted
Funds
£
105,117
12,755
15,273
26,326
-
159,471
73,153
13,081
-
-
-
86,234
15,579
30,878
12,720
59,177
3,010
2,692
-
-
5,702
310,584		 Designated
Funds
£
-
-
1,067
-
1,500
2,567
-
-
-
439
-
439
-
-
-
-
-
-
1,552
112
1,664
4,670		 Restricted
Funds
£
-
-
1,623
-
-
1,623
-
511
-
-
17,750
18,261
-
-
-
-
-
-
-
-
-
19,884		 Endowment
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2023
£
105,117
12,755
17,963
26,326
1,500
163,661
73,153
13,592
-
439
17,750
104,934
15,579
30,878
12,720
59,177
3,010
2,692
1,552
112
7,366
335,138		 Total
2022
£
100,604
10,664
17,915
26,341
500
156,024
74,393
17,647
-
240
19,080
111,360
5,326
35,990
10,781
52,097
-
3,138
861
89
4,088
323,569

*Includes £2,280 Energy grant from Chelmsford Diocesan Board of Finance.

14

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

3. Expenditure
Church activities
(a)
Church activities
Missionary and charitable giving
Ministry Costs
Parish share
(note 3(e))
Chaplaincy
maintenance
Clergy housing
Church running expenses
Church maintenance
Church halls running costs
Churchyard maintenance
Bookstall
Parish magazine
Staff costs (note 4)
Training and mission
Summer Safari
Messy Church
Utilities (Gas, electric and water)
Depreciation
Retirement presentation gifts
Church management and
administration
Printing, postage and stationery
Telephone
Office equipment
Legal and Professional fees
Payroll bureau
Governance costs
Examiner’s fee:
Independent examination
Total expenditure on church
activities
(b)
Fundraising costs
Fundraising costs
Total resources expended		 Unrestricted
Funds
£
1,512
145,789
157
2,077
15,756
8,556
70,371
6,291
-
-
63,673
716
-
-
21,936
-
1,161
337,995
925
2,940
5,790
11,035
1,371
22,061
2,700
2,700
362,756
646
363,402		 Designated
Funds
£
-
-
-
-
976
-
-
-
-
50
-
-
-
169
-
-
-
1,195
-
-
-
-
-
-
-
-
1,195
-
1,195		 Restricted
Funds
£
608
-
-
-
3,445
-
-
-
-
-
17,750
-
-
-
-
-
-
21,803
-
-
-
-
-
-
-
-
21,803
-
21,803		 Endowment
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2023
£
2,120
145,789
157
2,077
20,177
8,556
70,371
6,291
-
50
81,423
716
-
169
21,936
-
1,161
360,993
925
2,940
5,790
11,035
1,371
22,061
2,700
2,700
385,754
646
386,400		 Total
2022
£
1,614
163,512
-
-
6,634
-
37,126
2,926
-
48
76,500
606
-
480
19,944
-
586
309,976
1,094
2,828
4,926
-
492
9,340
3,060
3,060
322,376
847
323,223

15

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

3. Expenditure (continued)

(e) Diocesan Parish Share

Gross Diocesan Share from the parish
Less: Special credit
Less: Fees credit
Net assessment
Discount
Housing credit
Prolonged vacancy credit		 2023
£
165,928
-
-
165,928
(1,659)
(18,480)
-
145,789		 2022
£
180,188
(4,200)
(1,508)
174,480
(1,788)
(9,180)
-
163,512

(f) Support costs

Support costs (included above)
costs
Wages and Salaries
Employer’s pension contribution		 Unrestricted
Funds
£
27,275
Unrestricted
Funds
£
62,453
920
63,373		 Designated
Funds
£
-
Designated
Funds
£
-
-
-		 Restricted
Funds
£
-
Restricted
Funds
£
17,750
-		 Total
2023
£
27,275
Total
2023
£
80,503
920
81,423		 Total
2022
£
26,200
Total
2022
£
75,563
937
17,750 76,500

4. Staff costs

The average number of full-time equivalent employees in administrative and support roles during the year was four (2022: four). During the year there were no employees who earned £60,000 or more. St. Andrews (Hornchurch) Churchyard Maintenance Trust (note 10) makes a grant to the PCC to support the expenditure on maintaining the churchyard, including the wages of the gardener. The grant and expenditure set against it are included in note 8 (b). At 31 December 2023, four eligible staff members were enrolled in the NEST pension scheme (2022: four). The PCC is not required to make Employers’ National Insurance contributions as its liability falls below the minimum level at which contributions are payable.

16

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

5. Fixed assets

(a)
Tangible assets
Cost
At 1 January 2023
Additions
Disposals
At 31 December 2023
Depreciation
Accumulated depreciation at 1 January 2023
Charge for year
Accumulated depreciation at 31 December 2023
Net book value:
At 31 December 2023
At 31 December 2022		 Freehold Land and Buildings
Halls
Curate
Houses
£
£
795,000
782,500
-
-
-
-
795,000
782,500
-
-
-
-
-
-
795,000
782,500
795,000
782,500		 Fixtures,
fittings and
equipment
£
20,063
-
-
20,063
20,063
-
20,063
-
-		 2023
Total
£
1,597,563
-
-
1,597,563
20,063
-
20,063
1,577,500
1,577,500		 2022
Total
£
1,597,563
-
-
1,597,563
20,063
-
20,063
1,577,500

The freehold land and buildings comprise the Halls and Premises located at North Street, Hornchurch, together with the curates’ houses at Burnway, Chelmsford Drive and Kenilworth Gardens.

The North Street Halls site is shown at cost which, as permitted by SORP, was the deemed cost under FRS 15 transitional provisions, under which the property’s 2013 valuation has not been updated.

The three curates’ houses are also shown at cost under the same provisions noted above, under which the 2014 valuations of the properties have not been updated.

17

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

5. Fixed assets (continued)

(b)
Movement in fixed asset investments
Market value brought forward
at 1 January 2023
Add gain/deduct (loss) on revaluation
Market value at 31 December 2023
Investments at market value comprised
Collective investment Schemes
(COIF Charities Ethical Investment Fund)
Total
Market value of unrestricted investments
at 31 December 2023
Market value of restricted investments
at 31 December 2023		 2023
£
37,377
3,732
41,109
41,109
41,109
957
40,152
41,109		 2022
£
42,676
(5,299)
37,377
37,377
37,377
881
36,496
37,377

6. Debtors and prepayments

Income Tax Recoverable
Other debtors
Prepayments and Accrued Income		 2023
£
21,451
9,285
2,640
33,376		 2022
£
20,080
14,732
2,237
37,049

18

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

7. Liabilities

Amounts falling due within one year:
Accruals and Deferred income
Trade creditors
Other creditors		 2023
£
11,473
13,672
21,892
47,037		 2022
£
17,716
9,448
19,743
46,907

8. Statement of fund movements

Unrestricted) Funds
(see (a) below)
Restricted Funds
(see (b) below)
Endowment Funds
(see (c) below)
(a) Unrestricted Funds
General Funds
Legacies
Bequest
Organ & choir, music
Summer Safari
Magazine
Bookstall
Messy Church
Unrealised gain/(loss) on
valuation		 Balance
brought
forward
£
1,796,477
194,851
10,654
2,001,982
(280)
64,070
120,000
23,681
1,848
3,843
2,580
1,809
1,578,926
1,796,477		 Income
£
315,254
19,884
-
335,138
310,584
1,500
-
1,067
-
1,552
112
439
-
315,254		 Expenditure
£
(364,597)
(21,803)
-
(386,400)
(363,402)
-
-
(976)
-
(50)
-
(169)
-
(364,597)		 Revaluation
Gain(Loss)
£
-
3,732
-
3,732
-
-
-
-
-
-
-
-		 Transfers
£
18,932
(25,579)
-
-
52,818
-
(26,409)
-
-
-
-
-
(830)
25,579		 Balance
carried
forward
£
1,772,713
171,085
10,654
1,954,452
(280)
65,570
93,591
23,772
1,848
5,345
2,692
2,079
1,578,096
1,772,713

19

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

8. Statement of funds (continued)

(b) Restricted Funds
Church Fabric/Restoration
St Andrew’s Roof Appeal 2011
Bells
Organ Fund 2011
Sheila Jigins legacy (Mission
and Fabric)
Mrs E Burton legacy (Choir &
Music)
Dorothy Dines legacy (Choir)
F J Black (TimeOut)
Impact and youth work
CYT grant (note 4)
Choir Lighting
The Fold (Messy Church)
Mrs J Sheppard (St Matthew’s
prayer & hymn books)
St Matthew’s Books
L A Gillingham (Flowers)
V & LE Jackson and H Warren
(Choir)
H Smith (Flowers)
C Braithwaite (Fabric)
Mrs I M Parry (Education)
Children’s Society
Other charity collections
Restricted Choir Fund
Brenda Newlyn (Ramp &
crosses)
Unrealised gain on
investments		 Balance
brought
forward
£
28,517
33,256
1,130
19,436
50,794
9,199
735
593
133
-
2,748
6,054
1,000
239
202
404
102
2,307
1,000
30
35
-
301
36,636
194,851		 Income
£
125
525
-
511
-
-
-
-
-
17,750
-
-
-
-
-
-
-
-
-
102
809
62
-
-
19,884		 Expenditure
£
-
(2,970)
-
-
(387)
(88)
-
-
(17,750)
-
-
-
-
-
-
-
(132)
(476)
-
-
-
(21,803)		 Revaluation
Gain(Loss)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,732
3,732		 Transfers
£
-
-
-
-
(26,409)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
830
(25,579)		 Balance
carried
forward
£
28,642
30,811
1,130
19,947
24,385
8,812
647
593
133
-
2,748
6,054
1,000
239
202
404
102
2,307
1,000
-
368
62
301
41,198
171,085

20

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

8. Statement of funds (continued)

(c) Endowment Funds
Mrs Herapath
Talbot Gibbs Charity
William Gogney		 Balance
brought
forward
£
8,581
1,540
533
10,654		 Income
£
-
-
-
-		 Expenditure
£
-
-
-
-		 Revaluation
Gain(Loss)
£
-
-
-
-		 Transfers
£
-
-
-
-		 Balance
carried
forward
£
8,581
1,540
533
10,654

9. Analysis of net assets by fund

Fixed Assets
Current Assets
Current Liabilities		 Unrestricted
Funds
£
1,577,500
242,250
(47,037)
1,772,713		 Restricted
Funds
£
41,109
129,976
-
171,085		 Endowment
Funds
£
-
10,654
-
10,654		 Total Funds
2023
£
1,618,609
382,880
(47,037)
1,954,452		 Total Funds
2022
£
1,614,877
434,012
(46,907)
2,001,982

10. Related party disclosures

The PCC is associated with St. Andrews (Hornchurch) Churchyard Maintenance Trust (Registered Charity no 295658) by means of mutual Trustees, Rev’d K Wylie, Mr J Shearmur and Mr N McCarren. Its objective is that the income of the Trust Fund shall be applied in maintaining the churchyard in good order and repair including providing and/or maintaining equipment necessary for such maintenance and providing stock. In September 2018, the member of staff transferred employment to the PCC from St. Andrews (Hornchurch) Churchyard Maintenance Trust (note 4), which makes a grant to the PCC to support the additional expenditure (note 8 (b)). There were no balances outstanding between the PCC and St. Andrews (Hornchurch) Churchyard Maintenance Trust as at 31 December 2023 (2022: none).

No Trustees received any remuneration for services as members of the PCC, but a total of £ £3,350 (2022 £4,215) was paid, reimbursed or waived in respect of seven (2022: seven) members of the PCC for fees or expenses relating to weddings, funerals, travel and housing costs.

Unconditional donations that have been identified as emanating from related parties, including members of the PCC, amounted to £45,493.

The Organist, Mr A Losq, a member of Deanery Synod and therefore ex officio a PCC trustee, was paid £3,400 (2022 £3,809), which is included in the staff costs figures in note 4. The PCC received £2,948 from the Coronavirus Job Retention Scheme in 2022 while Mr Losq was on furlough.

The tenant at the Kenilworth Drive property is the daughter-in-law of a Church Warden, Mr N McCarren. The amount of rent payable was independently assessed.

21

Parish of Hornchurch - Annual Report and Accounts of The Parochial Church Council

For the year ended 31 December 2023

Notes to the Financial Statements (continued)

12. Comparative figures for the Statement of Financial Activities

SORP (FRS102) requires that the Statement of Financial Activities should show comparative figures for every item shown therein. The PCC has taken the option of showing these figures, for the year ended 31 December 2022, in a note to the accounts as set out below.

Note
Income and endowments
Voluntary income
2(a)
Church activities
2(b)
Income from investments
2(c)
Activities for generating funds
2(d)
Coronavirus Job Retention
Scheme Grant
4
Total income
Expenditure on
Church activities
3(a)
Fundraising costs
3(b)
Total expenditure
Net income/(expenditure)
before investment gains
Transfers between funds
Other recognised gains/(losses)
Gains/(losses) on revaluation of
fixed assets
Net income/(expenditure)
Reconciliation of funds:
Balances Brought Forward
1 January 2022
Balance Carried Forward
31 December 2022		 Unrestricted
General
Fund
£
155,318
90,540
52,097
3,138
-
301,093
300,526
847
(301,373)
(280)
-
-
(280)
-
(280)		 Unrestricted
Designated
Funds
£
500
1,367
-
950
-
2,817
1,504
-
(1,504)
1,313
-
(125)
1,188
1,795,569
1,796,757		 Restricted
Funds
£
206
19,453
-
-
-
19,659
20,346
-
(20,346)
(687)
-
(5,174)
(5,861)
200,712
194,851		 Endowment
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
10,654
10,654		 Total
2022
£
156,024
111,360
52,097
4,088
-
323,569
321,400
847
(322,247)
346
-
(5,299)
(4,953)
2,006,935
2,001,982

22