## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **Report and Accounts**
## **Year ended 31 December 2022**
|**Contents**|**Page**|
|---|---|
|Charity information…..................................................................................|2|
|Trustees’ Annual Report…..........................................................................|3-5|
|Independent Examiner’s Report…..............................................................|6|
|Statement of Financial Activities….............................................................|7|
|Balance Sheet…...........................................................................................|8|
|Cash Flow Statement…...............................................................................|9|
|Notes to the Accounts…............................................................................|10-18|
|Detailed Statement of Financial Activities with Comparatives….............|19|
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **CHARITY INFORMATION For the Year Ended 31 December 2022**
## **Trustees:**
Revd James Hutchings (Chair) Mr Philip Bladen Mr Stephen Cox (Churchwarden) Ms Judith Gowing Ms Fawkia Heller (Churchwarden) Ms Susan Mackworth-Praed Revd James Marston (Associate Priest) Mr Michael Murison Mr Michael Ross-McCall (Treasurer) Mr Paul Teverson
Mr Geoffrey Barnett Mr Peter Boyling (Vice Chair) Dr Helen Faride Ms Patricia Hawkins Mr William Heller Ms Alison Macmillan Ms Elisabeth Munden Dr Catherine Putz Ms Anne Sullivan Ms Carolyn Wilson (resigned on 7 October 2022)
## **Clerk to the Trustees:**
Ms Judith Gowing
## **Key Management Personnel:**
Revd James Hutchings, Barnes Team Rector & Vicar Ms Judith Gowing, Clerk to the Trustees Mr Stephen Cox, Churchwarden Mr Michael Ross-McCall, Honorary Treasurer
Ms Cheryl Cole, Parish Administrator Mr Peter Boyling, Vice Chair of PCC Ms Fawkia Heller, Churchwarden
## **Governing Document:**
Parochial Church Councils (Powers) Measure 1956 (as amended) and the Church Representation Rules
## **Charity Registration No.:**
1134840
## **Principal Address:**
Church Road London SW13 9HL
## **Independent Examiner:**
Archie McDowall BA CA Stewardship 1 Lamb’s Passage London EC1Y 8AB
## **Bankers:**
CAF Bank Ltd 25 Kings Hill Avenue, Kings Hill West Malling Kent ME19 4JQ
National Westminster Bank 111-117 Putney High Street London SW15 2LL
Page 2
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **ANNUAL REPORT OF THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL For the Year Ended 31 December 2022**
The Members of the Parochial Church Council (the 'PCC'), who are the charity's trustees for the purposes of charity law, have pleasure in presenting the report and accounts for the year.
## **Objects of the charity**
The charity is responsible for co-operating with the incumbent, in promoting in the ecclesiastical parish, the whole mission of the Church be it pastoral, evangelistic, social or ecumenical. The PCC is also responsible for the maintenance of the church of St Mary’s, Barnes and the church hall, Kitson Hall, in Kitson Road, Barnes.
## **Summary of the charity's main activities and achievements**
To further the above objects and vision, the charity's main activities and achievements were as follows:
1. This year the parish emerged from the pandemic, retaining new practices from the lockdown but also fully reopening all our services and activities. It is good to see attendance at services returning to pre-pandemic levels and a growth of work with children and families. The church has seen a wide range of services, and special events organised by the Friends of St Mary's. The Kitson Hall continues to be very well used by the local community.
2. This was a year of change and investment in key roles, paid and voluntary. In particular we were pleased to appoint Revd James Marston to the new role of Associate Priest, shared with the parish of St Michael & All Angels Barnes.
3. The PCC agreed a new Mission Action Plan focussing on Growing in Faith, Serving the Community, and Promoting care for God’s Creation.
4. Two significant priorities during the year have been practical support and prayer to those suffering from the war in Ukraine, and for those impacted by the cost-of-living crisis.
## **Structure, governance and management**
The charity is registered with the Charity Commission and operates under the Charities Act 2011. The governing documents for the charity are the Parochial Church Councils (Powers) Measure 1956 (as amended) and the Church Representation Rules.
The appointment of PCC members is governed by, and set out in, the Church Representation Rules. The PCC comprises ex-officio members (which includes clergy and churchwardens), elected members and co-opted members. The PCC organise elections annually before the Annual Parochial Church Meeting (APCM) to fill vacancies.
Responsibility for setting policy and for determining the parameters within which the charity should operate for making operating decisions rests with the PCC who meet regularly to monitor the activities of the charity. Responsibility for the day to day operation of the charity has been delegated to a management team (the Standing Committee) led by the incumbent.
Major risks to which the PCC is exposed, as identified by the PCC members, are reviewed periodically and systems or procedures established to manage those risks. Key issues include the security of income streams, the safeguarding of children and vulnerable adults, and the soundness of the fabric of the buildings.
Page 3
**The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **ANNUAL REPORT OF THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL (continued) For the Year Ended 31 December 2022**
## **Public benefit statement**
In planning the activities the PCC have complied with the duty to have regard to the UK Charity Commission’s public benefit guidance.
To further its charitable purposes for the public benefit, and in furtherance of its charitable objectives, St Mary’s provides financial support to a number of charities through church and Friends’ fundraising events, complementing support through volunteering and prayer. Our core charities are Fish Neighbourhood Care, Castelnau Centre, Glass Door Homeless Charity, Age UK Richmond Upon Thames, Welcare, Under Tree Schools, Christian Aid and the Bishop of Southwark’s Lent Call.
## **Financial Review**
During the year income (excluding other income) increased by £177,638, to £591,270, due to more events by the Friends of St Mary's Barnes, higher church hall lettings, higher investment dividends and wedding/funeral fees booked gross in 2022; in 2021 there was no Barnes charity ball and Covid restrictions had a negative impact on all activities and services. Other income in 2021 (2022: nil) comprised St Mary's share of the gain on sale of a surplus property of £591,556.
Expenditure increased in the year by £139,073, to £584,919 due to higher salaries and additional staff, change in booking wedding/funeral costs in 2022 and no charity ball and fewer Friends' events in 2021.
As a result the surplus for the year excluding other income and investment gains/(losses) was £6,352 compared to a deficit in 2021 of £32,213.
Reflecting the negative impact of the Ukraine war on global stock markets, the charity incurred investment losses of £83,948 (2021: net gain £7,532) that included a realised loss of £23,948.
Taking other income and investment gains/(losses) into account, St Mary's deficit was £77,597 compared to a surplus in 2021 of £566,875.
The charity's net assets in 2022 reduced by the £77,597 deficit, to £1,297,083. At the year end, St Mary's investments comprised units/shares in four publicly quoted funds (2021: two funds) which can be liquidated within 30 days.
## **Reserves policy**
The PCC have determined in February 2022 that the charity should aim to hold unrestricted cash of no less than £120,000 (which equates to about three months' of unrestricted expenditure as a general reserve fund) so that the charity could continue to operate should income and / or expenditure vary adversely.
At the year end, the charity held unrestricted cash of £150,581 and the charity is accordingly in compliance with its reserves policy. In addition, the charity has resolved to maintain reserves for five designated and restricted funds aggregating to at least £140,000.
## **Going concern**
The trustees consider that the charity has sufficient funds to enable it to continue its operations for the foreseeable future.
Page 4
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **ANNUAL REPORT OF THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL (continued) For the Year Ended 31 December 2022**
## **Key risks and uncertainties**
The charity is exposed to various risks - be they operational, financial or reputational. The PCC review the charity's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks.
Key issues include the security of income streams, the safeguarding of children and vulnerable adults, and the soundness of the fabric of the buildings.
## **Other matters**
With regard to the PCC’s obligations to safeguard children and vulnerable adults, the members of the PCC confirm that they have complied with their duties under section 5 of the Safeguarding and Clergy Discipline Measure 2016.
The Diocese has not assessed the PCC’s Parish Share for the year to 31 December 2022, which should be a minimum of £81,900 to cover the costs of the incumbent paid by the Diocese; having reviewed the PCC’s finances, the members of the PCC decided to pay a contribution of £183,600 (2021: £183,600).
The last quinquennial inspection was held in 2020; no significant immediate work is required.
## **Statement of Responsibilities of the Members of the Parochial Church Council**
The PCC is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources for the financial year. In preparing these financial statements, the PCC are required to:
1. select suitable accounting policies and apply them consistently;
2. observe the methods and principles in the Charities SORP;
3. make judgements and estimates that are reasonable and prudent;
4. state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
5. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The PCC is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. 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.
## **Approval**
This report was approved by the PCC and signed on their behalf by:
JAMES HUTCHINGS
Revd James Hutchings (Chair of Trustees) Date: 24 April 2023
Page 5
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF**
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes (‘the Charity’)**
I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 December 2022 on pages 7 to 19 following, which have been prepared on the basis of the accounting policies set out on pages 10 to 12.
## **Responsibilities and basis of report**
As the charity’s trustees of the Charity 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**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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 financial statements to be reached.
ARCHIE MCDOWALL
Name: Archie McDowall BA CA Dated: 24 April, 2023
Stewardship 1 Lamb’s Passage LONDON EC1Y 8AB
Page 6
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2022**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
8
Raising funds
9
**Total expenditure**
**Net gains/(losses) on investments**
12,14
**Net income/(expenditure)**
**Gross transfers between funds - in**
**Gross transfers between funds - out**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
19
**Total funds carried forward**
19
_Note: Unrestricted includes designated (unrestricted) funds._|Unrestricted
funds
£
199,866
121,324
35,615
14,086
-
370,892
364,849
10,121
374,970
(8,102)
(12,180)
41,365
(43,974)
(14,789)
195,776
180,987|£
11,425
-
208,953
-
-
220,378
71,926
138,022
209,949
-
10,430
3,309
(700)
13,039
65,652
78,691
Restricted
funds|£
-
-
-
-
-
-
-
-
-
(75,846)
(75,846)
-
-
(75,846)
1,113,252
1,037,405
Endowment
funds|Total funds
2022
£
211,291
121,324
244,568
14,086
-
591,270
436,776
148,143
584,919
(83,948)
(77,597)
44,674
(44,674)
(77,597)
1,374,680
1,297,083|Total funds
2021
£
217,671
69,172
126,134
655
591,556|
|---|---|---|---|---|---|
||||||1,005,188|
||||||362,970
82,875|
||||||445,845|
||||||7,532|
||||||566,875
14,799
(14,799)|
||||||566,875
807,805|
||||||1,374,680|
|||||||
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The notes on pages 10 to 18 form part of these accounts.
Page 7
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **BALANCE SHEET As at 31 December 2022**
|Note
**FIXED ASSETS**
Tangible assets
11
Investments
12
**CURRENT ASSETS**
Debtors
13
Investments
14
Cash at bank and in hand
15
16,17
**Net current assets / (liabilities)**
**TOTAL NET ASSETS**
**FUND BALANCES**
Unrestricted Funds
General funds
19
Designated funds
19
Restricted Funds
19
Endowment Funds
19
**TOTAL FUNDS**
_Note: Unrestricted includes designated (unrestricted) funds._
**CREDITORS: Amounts falling due within one**
**year**|£
5,949
-
5,949
25,735
81,932
150,581
258,248
83,211
175,037
180,987
86,059
94,927
180,987
-
-
180,987
Unrestricted
funds|£
-
-
-
-
-
78,690
78,690
-
78,690
78,691
-
-
-
78,691
-
78,691
Restricted
funds|£
460,000
577,406
1,037,406
-
-
-
-
-
-
1,037,406
-
-
-
-
1,037,406
1,037,406
Endowment
funds|Total funds
2022
£
465,949
577,406
1,043,355
25,735
81,932
229,271
336,938
83,211
253,727
1,297,083
86,059
94,927
180,987
78,691
1,037,406
1,297,083|Total funds
2021
£
460,000
653,253|
|---|---|---|---|---|---|
||||||1,113,253|
||||||15,313
90,034
193,491|
||||||298,839
37,411|
||||||261,428|
||||||1,374,681|
||||||119,874
75,902|
||||||195,776
65,652
1,113,252|
||||||1,374,680|
|||||||
The financial statements were approved by the Board of Trustees and were signed on its behalf by: Charity No. 1134840
JAMES HUTCHINGS Rev James Hutchings (Chair) Date: 24 April 2023 MICHAEL ROSS-MCCALL Michael Ross-McCall (Treasurer) Date: 24 April 2023
The notes on pages 10 to 18 form part of these accounts.
Page 8
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **CASH FLOW STATEMENT**
|Note
**Cash flows from operating activities:**
**_Net cash provided by (used in) operating activities_**
a
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
**_Net cash provided by/(used in) investing activities_**
b
b
**Analysis of changes in net debt:**
At start of
Non-cash
year
movements
£
£
Cash
193,491
Bank loans:
Falling due within one year
-
Falling due after one year
-
Finance lease obligations:
Falling due within one year
-
Falling due after one year
-
Total net funds / (debt)
193,491
-
**Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities**
**Adjustments for:**
Depreciation charges and provisions for impairment
(Gains)/losses on investments
Dividends, interest and rents from investments
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**_Net cash provided by (used in) operating activities_**
**Note b: Analysis of cash and cash equivalents**
Cash at bank with immediate access
Notice deposits (with a term of three months or less)
Petty cash
**Total cash and cash equivalents**
**_Change in cash and equivalents in the reporting period_**
**Cash and equivalents at the beginning of the year**
**_Cash and cash equivalents at the end of the year_**
**_Net income/(expenditure) for the reporting period (as per the statement of financial_**
**_activities)_**|2022
£
28,198
14,086
-
(6,505)
302,679
(302,679)
7,581
35,779
193,491
229,271
Cash-flows
£
35,779
-
-
-
-
35,779
2022
£
(77,597)
555
83,948
(14,086)
-
(10,422)
45,800
28,198
2022
£
79,626
147,340
2,305
229,271|2021
£
(28,095)|
|---|---|---|
|||655
659,054
-
-
(659,056)|
|||653|
||||
|||(27,442)
220,933|
|||193,491|
|||At end of
year
£
229,270
-
-
-
-|
|||229,270|
|||2021
£
566,875
-
(7,532)
(655)
(591,556)
(5,578)
10,351|
|||(28,095)|
|||2021
£
51,248
142,166
77|
|||193,491|
Page 9
**The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 December 2022**
## **1 Statutory information**
The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes is a charity registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.
## **2 Accounting Policies**
These financial statements are prepared on a going concern basis, under the historical cost convention [as modified by the revaluation of certain assets, which are measured at fair value through the Statement of Financial Activities]. The financial statements include all activities for which the PCC is legally responsible.
These financial statements have been prepared in accordance with The Church Accounting Regulations 2006, the 'Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)' ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.
The principles adopted in the preparation of the financial statements are set out below.
## a) Going concern
The PCC have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The PCC have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the PCC have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The PCC have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## b) Income
Income (which includes planned giving, collections and other donations) is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part income is generally recognised when it is received by, or on behalf of, the PCC. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes:
- i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
- ii) Donated facilities, services and goods. The charity relies on volunteers to carry out many of its activities, particularly fund raising events. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
- iii) Legacies. Income from legacies is recognised when a distribution is received from the estate or, if earlier, when the charity has been notified that a distribution will be made and the amount receivable can be measured reliably.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from baptisms/ weddings/ funerals, church lettings and church hall lettings.
Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from church events, Association of Friends events and merchandise sales.
Investment income represents income generated by the charity's assets and includes income from its investment portfolio and bank interest.
Other income comprises gains arising from the disposal of tangible fixed assets.
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
Page 10
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022**
## **2 Accounting Policies (continued)**
## c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Contributions in respect of the diocesan parish share are included in the Statement of Financial Activities for all amounts agreed to being payable for the financial year. Any contributions that have not been paid over by the year end are included as a creditor.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
## d) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects. Endowment funds are donations that are retained as capital in accordance with the donor's wishes. The nature of the restriction determines whether the endowments represent permanent endowments or expendable endowments.
## e) Tangible Fixed Assets
Consecrated and beneficed property is not included in these financial statements by virtue of s.10(2) of the Charities Act 2011. All expenditure on consecrated or beneficed buildings is written off in the year in which it is incurred.
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £250 and the item is expected to benefit the charity over three accounting periods or more. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Freehold land Is not depreciated (because it is not consumed by use) Freehold buildings Over 50 years after taking account of the building's residual value Leasehold improvements Over the lease term or, if shorter, expected useful life Equipment Over 3 to 7 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
## f) Investments
Fixed asset investments are held to generate income and / or for their investment potential. Current asset investments are investments that are held specifically for sale or are investments that the charity expects to sell by the next balance sheet date. Investments, other than social investments (see below), are valued as follows:
- i) Investment property and listed investments are valued at their market value (fair value) at the balance sheet date.
- ii) Unlisted investments are measured at cost less impairment where it becomes apparent that the amount that could be realised is less than cost.
Impairment losses and losses arising on the disposal of investment assets are included in the Statement of Financial Activities under the heading 'Net gains / (losses) on investments'.
## g) Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
Page 11
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022**
## **2 Accounting Policies (continued)**
## h) Financial instruments
The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).
## i) Foreign currency translation
These financial statements are presented in sterling, which is the charity's functional currency.
i) Income and expenditure denominated in a foreign currency is translated into sterling at the exchange rate prevailing on the date of the transaction.
ii) Monetary assets and liabilities denominated in a foreign currency are re-translated at the exchange rate prevailing at the balance sheet date.
iii) Non-monetary assets are measured at historic cost at the rate of exchange prevailing on the date of the transaction and are not subsequently re-translated.
All differences arising from the application of the above policy are charged (or credited) to the Statement of Financial Activities.
## j) Exemption from preparing a cashflow statement
The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.
## k) Critical accounting estimates and areas of judgement
The members of the PCC do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
|**3**
**Donations and legacies**
Donations of cash and similar
Income tax recoverable
Legacies receivable
**4**
**Income from charitable activities**
Church hall lettings
Fees for Baptisms, Weddings, Funerals, Memorials and Interments
Hire of the Church
Flowers for Weddings and Funerals
Garden of Remembrance Inscriptions
**5**
**Income from other trading activities**
Friends fundraising events
Other fundraising events
Merchandise sales
**6**
**Investment income**
Dividends and interest receivable
Bank and Building Society Interest
**7**
**Other income**
Gain on sale of Fixed Assets|2022
£
168,390
41,899
1,002
211,290
74,199
31,619
10,276
4,870
360
121,324
203,477
39,988
1,104
244,568
13,962
124
14,086
-
-|2021
£
169,780
45,891
2,000|
|---|---|---|
|||217,671|
|||45,494
9,595
6,863
4,340
2,880|
|||69,172|
|||104,375
18,436
3,323|
|||126,134|
|||-
655|
|||655|
|||591,556|
|||591,556|
Page 12
**The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022**
|**8**
**Charitable expenditure**
**a**
**Costs incurred directly on specific activities**
Ministry expenses:
Parish Share
Ministry staff employment costs
Other ministry expenses
Upkeep of services
Clergy expenses
Training costs
Property expenses:
Operational costs for church hall
Operational costs for church
Major repairs to church
Upkeep of churchyard
Major repairs to church hall
Grants payable (note 8c)
**b**
**Costs incurred on support and administration**
Governance costs:
Independent examiner's fee
Stewardship Campaign
Administrative staff employment costs
Church office costs
Other expenses
Depreciation - Equipment
Bank charges|2022
£
183,600
44,386
19,808
17,776
6,113
195
271,878
29,171
25,041
14,867
930
602
70,612
43,776
386,266
1,800
-
1,800
35,765
10,509
1,740
555
141
50,510|2021
£
183,600
30,580
1,266
10,663
1,733
206|
|---|---|---|
|||228,047|
|||24,706
19,973
22,686
2,571
3,886|
|||73,822|
|||23,305|
|||325,175|
|||-
2,421|
|||2,421
24,741
8,280
2,256
-
97|
|||37,795|
Note: The fee payable to the independent examiner for examining the accounts was £1,800 (2021: £nil); no other services were provided by Stewardship.
|**Total expenditure**
**c**
**Grants payable**
Grants for UK and overseas mission
Grants for the relief of poverty
Grants for education, including ministry training|Institutions
£
31,549
6,774
5,453
43,776|436,776
Individuals
£
-
-
-
-|362,970|
|---|---|---|---|
||||2022
£
31,549
6,774
5,453|
||||43,776|
Page 13
**The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022**
|2022
£
**8**
**Charitable expenditure (continued)**
**c**
**Grants payable (continued)**
The comparatives for the previous year are as follows:
Institutions
Individuals
£
£
Grants for UK and overseas mission
13,671
-
Grants for the relief of poverty
7,409
-
Grants for education, including ministry training
2,225
-
23,305
-
The charity's principal grants to institutions comprised:
2022
£
DEC Ukraine Appeal
8,510
Under Tree Schools
5,454
Cancer Research UK
3,500
Home Start
3,500
Glass Door Homeless Charity
3,044
FiSH Neighbourhood Care
2,689
Age UK Richmond upon Thames
2,609
Castelnau Centre Project
2,609
Wellcare, Richmond
2,609
Storm Bank
2,500
Association for Post Natal Illness
2,000
Bishop of Southwark's Lent Call
1,041
Medecins sans Frontieres
-
Grants to institutions for less than £1,000 each
3,712
43,776
**9**
**Raising funds**
Friends events
135,352
Other fundraising events
12,242
Merchandise sales
549
148,143
**10**
2022
£
Gross wages and salaries
69,608
Social security
4,252
Pension costs
1,847
Other employment benefits
-
75,707
**Analysis of staff costs, the cost of key management personnel and trustee remuneration and**|2021
£
2021
£
13,671
7,409
2,225|
|---|---|
||23,305|
||2021
£
-
2,225
-
2,600
2,445
3,089
2,225
2,225
2,250
-
-
1,875
1,183
3,188|
||23,305|
||79,879
1,881
1,115|
||82,875|
||2021
£
50,132
3,064
1,886
-
**expenses**|
||55,082|
The average monthly number of employees during the year was 5 (2021: 4). Most of the charity's activities are carried out by volunteers.
No staff received salaries at a rate of more than £60,000 per annum.
The charity's key management comprise the members of the PCC and the key staff named on the Charity Information page. Total employment benefits payable to key management for the year were as follows:
|Other
Employer
Wages &
employment
pension
salaries
benefits
contributions
Members of the PCC
-
-
-
Key management connected to members of the PCC
-
-
-
Other members of key management
25,745
-
804|2022
£
-
-
26,549|
|---|---|
||26,549|
Page 14
**The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022**
## **10 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses (continued)**
The following amounts were payable in the previous year:
|The following amounts were payable in the previous year:
**Analysis of staff costs, the cost of key management personnel and trustee remuneration and**
**(continued)**|**expenses**|
|---|---|
|Other
Employer
Wages &
employment
pension
salaries
benefits
contributions
Members of the PCC
-
-
-
Key management connected to members of the PCC
-
-
-
Other members of key management
23,969
0
772|2021
£
-
-
24,741|
||24,741|
Revd James Hutchings and Revd James Marston (who are clergy members of the PCC) receive a stipend from the Diocese and so they are not employees; some of the Parish Share paid to the Diocese is used to help meet the cost of these stipends. They were provided with accommodation (which is customary for clergy) and the cost of this accommodation to the PCC is disclosed in note 8 'Charitable Expenditure'. The charity also reimbursed expenses to them; again these costs are disclosed in note 8 'Charitable Expenditure' under the heading 'Clergy expenses'.
|**11**
**Tangible assets**
_11.1_
_Property - Kitson Hall_|2022
£
460,000
460,000|2021
£
460,000|
|---|---|---|
|||460,000|
Kitson Hall is valued at cost. The Trustees believe that the market value exceeds the carrying value, hence no amortisation charge is taken.
During 2021 the house located at 52 Boileau Road was sold and £ 659,036 was received being the share of the net proceeds; the gain on sale of £591,556 was reflected in other income in 2021.
## _11.2 Fixtures, furniture & equipment_
|At 1 January
Additions
Charge for the year
Disposals
Eliminated on disposal
At 31 December
Net book value:
At 31 December 2022
At 31 December 2021|202|Accumulated
depreciation
-
555
-
555
2|202|1|
|---|---|---|---|---|
||Cost
-
6,505
-
6,505
5,949
-||Cost
-
-
-
-|Accumulated
depreciation|
|||||-
-
-|
|||||-|
||||||
During 2022, the Trustees changed the previous accounting policy of expensing all expenditure on furniture and equipment to a policy of capitalising asset purchases with a cost exceeding £250 and a useful life of 3 years and above.
## **12 Fixed asset investments**
|**Fixed asset investments**|||
|---|---|---|
|Cost or fair value brought forward
Purchases during the year
Disposals during the year (net proceeds)
Loss on sale
Change in value of investments held at year end
Cost or fair value carried forward|653,253
302,679
(302,679)
(23,948)
(51,899)
577,407|-
659,056
-
-
(5,803)|
|||653,253|
The Endowment - Ministry Capital fund was established from the net proceeds of sale of a surplus property in 2021 and were invested in the CCLA COIF Charity Investment Fund (Income units). During 2022, 50% of the Income units were sold and the net proceeds used to purchase CCLA CBF CofE Investment Fund Income Shares and Newton Growth and Income for Charities Income Shares in order to further diversify the portfolio. The units and shares are listed and capable of liquidation within 30 days.
Page 15
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
**For the year ended 31 December 2022**
|**13 Debtors**
**Falling due within one year:**
Tax recoverable
Other debtors
Trade debtors
Prepayments and accrued income
**14 Current asset investments**
Cost or fair value brought forward
Purchases during the year
Disposals during the year
Change in value of investments|2022
£
14,056
5,363
4,570
1,746
25,735
90,034
-
-
(8,102)
81,932|2021
£
14,707
-
-
606|
|---|---|---|
|||15,313|
|||76,699
-
-
13,335|
|||90,034|
Surplus funds were invested since 2016 in the CCLA COIF Charity Investment Fund (Growth units). The units and shares are listed and capable of liquidation within 30 days.
|**15 Cash at bank and in hand**
Notice deposits (with a term of three months or less)
Cash at bank with immediate access
Petty cash
**16 Creditors: liabilities falling due within one year**
Deferred income
Other creditors
Accruals
Taxation and Social Security
**17 Deferred income**
Deferred income comprises the following:
The income deferred at the period end will be released to income over the following periods:
Within one year
Balance at the beginning of the reporting period
Amount released to income
Amount deferred in year
Balance at the end of the reporting period|147,340
79,626
2,305
229,271
40,504
31,413
8,026
3,268
83,211
26,600
(26,600)
40,504
40,504
40,504|142,166
51,248
77|
|---|---|---|
|||193,491|
|||26,600
8,441
-
2,370|
|||37,411|
|||20,154
(20,154)
26,600|
|||26,600|
|||26,600|
Deferred income comprised church hall rents received for rentals due in the following year and for receipts of ticket sales for Friends' events taking place in the next year.
## **18 Pension commitments**
During the year employer’s pension contributions in respect of the incumbent and associate priest were paid by the Diocese of Southwark to the Church of England Pensions Board and reimbursed by the charity through the Ministry Parish Share payment.
Employer’s pension contributions in respect of the staff totalling £1,847 (2021: £1,886) were paid to the National Employment Savings Trust (NEST).
No pension contributions were owing at the balance sheet date (2021: £nil).
Page 16
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022**
## **19 Funds**
During the year the movements in the charity's funds were as follows:
|Designated funds
Flower Fund
Kitson Hall Revenue Fund
Kitson Hall Reserve Fund
Youth Fund 2018
Ministry Income Fund (see note)
General unrestricted funds
Total unrestricted funds
Restricted funds
Bishop's Lent Call
Bells Fund
Castelnau Community Project
Friends Fund
Music Fund
Under Tree School
Total restricted funds
Endowment funds
Endowment - Ministry Capital (see note)
Endowment - Kitson Hall
Total endowment funds
Aggregate of funds|2022
£
0
0
35,000
40,902
0
75,902
119,874
195,776
0
11,151
0
45,760
8,741
0
65,652
653,252
460,000
1,113,252
1,374,680
Opening
balance|2022
£
5,268
74,199
0
0
13,962
93,429
277,462
370,891
1,040
1,477
0
212,476
2,933
2,453
220,379
0
0
0
591,270
Incoming
resources|2022
£
3,479
40,736
0
29,031
7,695
80,941
294,029
374,970
1,040
0
2,609
198,475
5,372
2,453
209,949
0
0
0
584,919
Outgoing
resources|2022
£
0
(33,464)
0
30,000
10,000
6,537
(9,146)
(2,609)
0
700
2,609
(700)
0
0
2,609
0
0
0
0
Transfers in the
year|2022
£
0
0
0
0
0
0
(8,102)
(8,102)
0
0
0
0
0
0
0
(75,846)
0
(75,846)
(83,948)
Gains and
losses|2022
£
1,790
(0)
35,000
41,870
16,267
Closing
balance|
|---|---|---|---|---|---|---|
|||||||94,927
86,059|
|||||||180,986|
|||||||0
13,328
0
59,061
6,302
0|
|||||||78,691|
|||||||577,406
460,000|
|||||||1,037,406|
|||||||1,297,083|
_Note: Established on 1 January 2022 to receive income from Endowment - Ministry Capital Fund, whose name was changed from "Share of 52 Boileau Road Fund" on 1 January 2022._
The transfers referred to above were made for the following reasons:
a) Surplus for 2022 of £33,464 in Kitson Hall Revenue Fund was allocated to part-fund the budgeted 2023 net expenditures in Youth Fund 2018 (work with children and families) and Ministry Income Fund (staff costs of associate priest) with balance to General Fund.
b) £6,537 was transferred from General Unrestricted Funds to create a balance in the Ministry Income Fund equal to its expected 2023 expenditure. c) £700 from Barnes Music Festival ticket sales was gifted by Association of Friends to the Bells Fund.
d) £2,609 was gifted by the General Fund to the Castelnau Community Project as a donation.
The assets and liabilities of the various funds were as follows:
|The assets and liabilities of the various funds were as follows:|||||
|---|---|---|---|---|
|Fixed asset investments
Debtors
Current assets investments
Cash at bank and in hand
Creditors falling due within one year|£
5,949
25,735
81,932
150,581
(83,211)
180,987
Unrestricted &
Designated
funds|£
0
0
0
78,690
0
78,690
Restricted
funds|£
1,037,406
0
0
0
0
1,037,406
Endowment
funds|2022
£
1,043,356
25,735
81,932
229,271
(83,211)|
|||||1,297,083|
Page 17
**The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2022**
## **19 Funds (continued)**
In the previous year the movements in the charity's funds were as follows:
|Designated funds
Kitson Hall Revenue Fund
Kitson Hall Reserve Fund
Youth Fund 2018
General unrestricted funds
Total unrestricted funds
Restricted funds
Bishop's Lent Call
Bells Fund
Castelnau Community Project
Friends Fund
Music Fund
Under Tree School
Total restricted funds
Endowment funds
Share of 52 Boileau Road Fund (see note)
Endowment - Kitson Hall
Total endowment funds
Aggregate of funds|2021
£
0
35,000
48,733
83,733
117,861
201,594
0
8,423
0
60,802
9,486
78,711
67,500
460,000
527,500
807,805
Opening
balance|2021
£
45,494
0
50
45,544
250,313
295,857
1,875
1,097
687
111,698
1,545
873
117,775
591,556
0
591,556
1,005,188
Incoming
resources|2021
£
34,438
0
18,267
52,705
261,533
314,238
1,875
0
687
125,780
2,290
975
131,607
0
0
0
445,845
Outgoing
resources|2021
£
(11,056)
0
10,386
(670)
(103)
(773)
0
1,630
0
(960)
0
102
772
0
0
0
(1)
Transfers in
the year|2021
£
0
0
0
Gains and
losses|
|---|---|---|---|---|---|
||||||0
13,336|
||||||13,336|
||||||0
0
0
0
0
0|
||||||0|
||||||(5,803)
0|
||||||(5,803)|
||||||7,532|
_Note: Name changed to "Endowment - Ministry Capital Fund" on 1 January 2022._
In the previous year, the assets and liabilities of the various funds were as follows:
|Fixed asset investments
Debtors
Current assets investments
Cash at bank and in hand
Creditors falling due within one year|£
0
15,313
90,034
127,839
(37,411)
195,775
Unrestricted
& Designated
funds|£
0
0
0
65,652
0
65,652
Restricted
funds|£
1,113,253
0
0
0
0
1,113,253
Endowment
funds|2021
£
1,113,253
15,313
90,034
193,491
(37,411)|
|---|---|---|---|---|
|||||1,374,680|
Designated and unrestricted funds comprise funds which have been designated by the trustees for the support of the church's activities.
Restricted funds comprise balances held by the charity on behalf of specific groups within the church who seek to make a surplus from their activities and donations, then may decide to pay for church expenditures like the Association of Friends or else spend their surplus as they choose.
Endowment funds comprise the net gain from the sale of a property in 2021 and investment gains/(losses); in accordance with the reserves policy, part of the endowment funds is not required to be retained for the long-term and accordingly is available to assist with financing large capital projects and to underwrite the costs of the childrens' church and associate priest.
## **20 Transactions with related parties**
During the year the charity:
a) received donations totalling £31,770 (2021: £27,240) from related parties (which includes members of the PCC, any other members of key management and anyone closely connected to them).
b) paid £nil expenses (2021: £nil) to, or for, non-clergy members of the PCC.
At the balance sheet date £nil was owed (2021: £nil) by the charity to related parties.
Page 18
## **The Parochial Church Council of the Ecclesiastical Parish of St Mary, Barnes**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES For the year ended 31 December 2022**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
8
Raising funds
9
**Total expenditure**
**Net gains / (losses) on investments**
12,14
**Net income / (expenditure)**
**Gross transfers between funds - in**
**Gross transfers between funds - out**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
19
**Total funds carried forward**
19||Unrestricted
2022
£
199,866
121,324
35,615
14,086
0
370,892
364,849
10,121
374,970
(8,102)
(12,180)
41,365
(43,974)
(14,789)
195,776
180,987|Restricted
2022
£
11,425
0
208,953
0
0
220,378
71,926
138,022
209,949
0
10,430
3,309
(700)
13,039
65,652
78,691|Endowment
2022
£
0
0
0
0
0
0
0
0
0
(75,846)
(75,846)
0
0
(75,846)
1,113,252
1,037,406|Total
2022
£
211,291
121,324
244,568
14,086
0
591,270
436,777
148,143
584,920
(83,947)
(77,597)
44,674
(44,674)
(77,597)
1,374,680
1,297,083|||Unrestricted
2021
£
204,270
69,172
21,759
655
0
295,856
311,241
2,996
314,237
13,335
(5,045)
12,396
(13,169)
(5,818)
201,594
195,776|Restricted
2021
£
13,401
0
104,375
0
0
117,776
51,730
79,879
131,608
0
(13,833)
2,403
(1,630)
(13,060)
78,711
65,651|Endowment
2021
£
0
0
0
0
591,556
591,556
0
0
0
(5,803)
585,753
0
0
585,753
527,500
1,113,253|Total
2021
£
217,671
69,172
126,134
655
591,556
1,005,188
362,970
82,875
445,845
7,532
566,875
14,799
(14,799)
566,875
807,805
1,374,680|
|---|---|---|---|---|---|---|---|---|---|---|---|
_Note: Unrestricted includes designated (unrestricted) funds._
Page 19