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2021-12-31-accounts

Financial Statements and Annual Report for the year ended 31[st] December 2021

St Paul’s Church, Knightsbridge The Diocese of London Reg. Charity no. 1134857

Financial Statements and Annual Report for the year ended 31[st] December 2021

St Paul’s Church, Knightsbridge The Diocese of London Reg. Charity no. 1134857

Contents Page
Annual Report of the Parochial Church Council 1-7
Independent Examiners’ Report 8
Statement of Financial Activities 9
Balance Sheet 10
Statement of Cash Flows 11
Notes to the Financial Statements 12-21

The Annual report of the Parochial Church Council will be read to the Annual Meeting, and copies will be available from the Church Office, 32A Wilton Place, London SW1.

ST PAUL’S, KNIGHTSBRIDGE ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction

St Paul's Parochial Church Council (PCC) is required, as stated in the Parochial Church Councils (Powers) Measure 1956, to co-operate with the minister in promoting in the ecclesiastical parish the whole mission of the Church – pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for St Paul's Hall, 77 Kinnerton Street, London SW1.

Membership of the Parochial Church Council

Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. Nominations are invited from church members in the lead up to the APCM. New trustees are provided with information on their legal obligations under charity law and an explanation of what the role will entail. New trustees are introduced to fellow trustees and encouraged to attend appropriate external and diocesan training events when available. During the year the following served as members of the PCC:

Officers:

Chairman: The Rev’d Alan Gyle – Vicar of the Parish ‡
Churchwardens: Lorna Gradden ‡ - Vice chair
Robert Clouston ‡
Secretary: Philip Davies
Treasurer: Noel Craven ‡
Electoral Roll Officer: Iago Griffith
Safeguarding Officer: David Hayton
Children’s Advocate: Virginia Craven
‡ denotes Standing Committee member
PCC Members:
Until APCM 2021 Roland Brunner
Patricia Dopheide
Thomas Tull
Rachel Vosper
John White
Until APCM 2022 Noel Craven ‡
David Hayton
Anna Keighley ‡
Melissa Longley
Robert Thomas
Until APCM 2023 Serena Butt
Tempe Brickhill
Sophia Galitzine
Aidan Linton-Smith
Rupert Powell
Until APCM 2024 Hobson Barnes
Claudio Cornini
Jamie De Freitas
David Kemmis Betty
Jean Wooley

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ST PAUL’S, KNIGHTSBRIDGE ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Member by virtue of being licensed to the parish:

The Rev’d Luigi Gioia

Representatives on the Deanery Synod of St Margaret’s Westminster:

Until 31[st] May 2021 Serena Butt Caroline Docker Gardenia Griffith Sarah Tytherleigh Until 31[st] May 2023 Philip Davies (not a member of the PCC) Caroline Docker Gardenia Griffith Christopher Stephens John White

Key Management Personnel

The Standing Committee members listed on page 1 are considered to be key management personnel as they are in charge of directing, controlling, running and operating the church on a day to day basis. All such personnel give of their time freely or are remunerated by the Diocese, and therefore received no remuneration from the church in the year. Details of PCC members’ expenses and other related party transactions are disclosed in Note 13 to the financial statements.

Standing committee

This is the only Committee required by law. It meets about six times a year.

Church attendance

The parish Electoral Roll stood at 279 at the year-end. Average Sunday attendance (in-person and online) is currently 120 people.

Advisers

Bankers C Hoare & Co 32 Lowndes Street London SW1X 9HZ Independent Examiners Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW Correspondence Address The Parish Office 32a Wilton Place London SW1X 9SH

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ST PAUL’S, KNIGHTSBRIDGE ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

The Proceedings of the PCC in 2021

GOVERNANCE & THE PCC

The PCC met four times during the year. Agenda items included mission, formation, finance and stewardship, regular revision of the risk assessment in relation to COVID-19, safeguarding, ministry to children and families, church maintenance and administration .The Standing Committee met in between full meetings of the Council to formulate the agenda and to transact routine business.

WORSHIP & PASTORAL SERVICES

2021 began in lockdown with choral Sunday worship being live-streamed from the church. Ash Wednesday was observed with an evening Eucharist with Imposition of Ashes in church, and regular ‘in-person’ services in the building resumed on Palm Sunday. A particular liturgical highlight was the return of congregational hymn singing in the early summer.

In the autumn, a revised pattern of worship was established with the usual Solemn Eucharist at 11AM each Sunday, a Low Mass each Wednesday evening, and the Offices of Morning Prayer and Evening Prayer being said daily, in the building and via Zoom respectively.

As COVID restrictions eased in the second half of the year, we saw large congregations return for some thirty pastoral services - weddings, baptisms, funerals, and memorials. During the month of December we hosted twelve carol services and concerts, supporting a number of charities in raising significant funds for their work.

A state-of-the-art video streaming system was installed during the year, made possible by a generous grant from the St Paul’s Knightsbridge Foundation. This enabled the live-streaming of regular services to those unable to attend church inperson, and also for family and friends unable to travel during the pandemic, to participate in pastoral services online.

THEOLOGY & FORMATION

During the season of Lent, the clergy team along with Michael Koenig (assistant organist) produced a series of daily video reflections to stimulate thinking from theological, poetic, musical, visual and historical perspectives. Towards the end of the year Fr Luigi Gioia, Director of the QUEST formation programme launched a ‘New Voices in Theology’ lecture series, providing a platform to five young female theologians to share their wisdom on community, worship and society. The lectures attracted participants both from within our congregation and further afield, with invitations being extended to theologians, teachers, and students across the country.

CLERGY, STAFF & VOLUNTEERS

Fr Alan Gyle (Vicar) was supported in delivering worship, formation, and pastoral care by clerical colleagues Fr Luigi Gioia, Fr Victor Stock and Bishop Michael Colclough. Roland Brunner served as Licensed Lay Minister.

Phil Davies worked on co-ordinating the response to the ever-changing rules around the pandemic, developing live video streaming capabilities, and overseeing governance and operations, with Adam Modzelewski caring for the church building and hall. In the autumn Katja Behrens joined as Executive Assistant to provide office support to the team, and to manage the programme of Christmas charity carol services, special pastoral services and other bookings.

Lorna Gradden and Robert Clouston (Churchwardens) were well supported by a team of dedicated volunteers to provide welcome to those attending worship. Robert Thomas continued as Head Server. Tempe Brickhill (Lady Verger) assisted by Abraham de Wit provided verger support at special pastoral services, and Caroline Docker managed the ever-growing team of volunteers who provided a warm welcome and hospitality to guests at the Songhaven dementia-friendly concerts.

3

ST PAUL’S, KNIGHTSBRIDGE ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

MUSIC

Following Stephen Farr’s resignation at Easter 2020, we were grateful to Dan Ludford-Thomas for taking up the role of Interim Director of Music to cover an uncertain period during the pandemic. In the autumn of 2021, with the guidance of James O’Donnell (Organist and Master of the Choristers, Westminster Abbey) and Gulliver Ralston (Director of Music, The University of Roehampton), we undertook a process to appoint a new Director of Music, and were delighted to appoint Joseph Fort, who took up his appointment on Advent Sunday.

It was with sadness that we bade farewell to Timothy Wakerell as Organist & Assistant Director of Music in January, and Michael Koenig, Assistant Organist, stepped up to undertake the organ playing until the autumn, when he began his doctoral studies in Oxford. In the autumn, James Orford was appointed Interim Organist, with Michael continuing as Assistant Organist. Findlay Spence, continued to enrich our music offering as Cello Scholar.

In April, we were delighted to host the Royal College of Organists for a week of online broadcasts related to ‘interNational Organ Day’, utilizing the newly-installed video system to live-stream interviews and organ recitals to viewers across the world. The programme culminated with our own choir, directed by Dan Ludford-Thomas, performing Zoltan Kodály’s masterpiece for organ and choir, Laudes Organi.

PASTORAL & SOCIAL

During the period of lockdown at the beginning of the year, we returned to a series of online social events via Zoom, including regular coffee mornings, afternoon tea events for those living and working in the parish, and an online pancake party on Shrove Tuesday. Following the relaxation of pandemic rules we were delighted to see in the autumn with the traditional Vicarage garden party in early September, and to resume the series of monthly dementia-friendly tea concerts in conjunction with Songhaven. The Berkeley Hotel generously hosted our traditional ‘Music Dinner’ in their ballroom, raising c. £30,000 towards the cost of the regular music programme.

PUBLIC BENEFIT STATEMENT

The PCC had due regard to Charity Commission guidance on public benefit when planning and reviewing the activities outlined in this report.

REPORT ON FABRIC GOODS & ORNAMENTS

A rolling programme of minor repairs and renovations continued in the Church and Church Hall in Kinnerton Street. A video-streaming system was installed in church to enable the live-streaming of services and other events such as lectures and recitals. The plane trees in the churchyard were pruned to protect the historic fabric of the church building, and the south garden was cleared of largely self-sown trees and shrubs to create a usable space for the community. The Quinquennial inspection of the church building was undertaken during the month of December. The Terrier and Inventory were maintained and the Churchwardens were content that the Fabric, Goods and Ornaments of the church were being well maintained.

Finance overview

The year-end financial result of a £48,953 deficit on the general fund (2020: £10,941) and a restricted fund surplus of £1,741 (2020: £33,071).

Voluntary income was slightly higher than in 2020, but still below pre-pandemic levels. Collection at regular services and pledged giving by standing order or direct debit were both reduced compared to pre-pandemic levels. Restricted grants were received from the St Paul’s Knightsbridge Foundation to fund the Director of QUEST role (£32,000), and to contribute to the cost of installing video streaming equipment (£40,000). The Music Dinner raised c.£30,000, the proceeds of which were applied to the cost of music at regular services.

Earned income was higher than in 2020, mainly due to the return of pastoral services (weddings, baptisms, funerals and memorial services) as COVID restrictions were eased in the second half of the year, and increased up-take in parking spaces.

Costs Most of the PCC’s costs are fixed and do not fluctuate with activity level. Staff costs were higher than in 2020 largely due to a new Executive Assistant role from September, and the full year impact of the Director of QUEST role (2020: half

4

ST PAUL’S, KNIGHTSBRIDGE ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

year from July) . Maintenance costs were higher than in 2020 due to works to pruning the plane trees in the churchyard, and the costs associated with increased use of the building in 2021. The PCC’s obligations were met, including the additional 10% on Common Fund to support the work of the wider church in London. A donation was made to the diocesan Lent Appeal.

Report on Church Attendance and the Electoral Roll

Responsibility for maintaining a record of those eligible to stand for election to the PCC and of those eligible to vote in parochial elections lies with the Electoral Roll Officer. Each year the Parochial Church Council is required to revise the parish Electoral Roll. In December 2021 the Electoral Roll stood at 279. Average Sunday attendance at all services was 120.

Safeguarding

David Hayton (Safeguarding Officer) continued to oversee the PCC’s Safegaurding policies and procedures. The PCC is of the view that is has complied with the duty to have ‘due regard’ to the House of Bishops’ Safeguarding Policy and Practice Guidance.

Future Plans

The PCC aims to continue to maintain the highest standards in public worship, pastoral care, Christian formation, and outreach in the wider community. Planned initiatives in 2022 include becoming a ‘Healthy Healing Hub’ of GOHealth (the Guild of Health & St Raphael) and appointing an Associate Priest to shape this work. As we emerge from the pandemic, new patterns of worship are being established, including Evening Prayer being said daily via Zoom to drive wider participation, and an innovative mid-week liturgy will be introduced to complement the Sunday Solemn Eucharist. There is a plan to set up a Sunday morning creche for families wishing to attend the Solemn Eucharist. The PCC is mindful of the importance of environmental sustainability, and will undertake a feasibility study to explore options for becoming a net carbon zero church.

Statement of PCC responsibilities

The Parochial Church Council (PCC) are 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).

The Church Accounting Regulations 2006 require the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Council and of its financial activities for that period. In preparing those financial statements, the PCC is required to:

The PCC are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Council and enable them to ensure that the financial statements comply with the Charities Act 2011, 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.

5

ST PAUL’S, KNIGHTSBRIDGE ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Risk assessment

The PCC is satisfied that there are procedures in place to mitigate exposure to major risks. The PCC considers the principal risks and uncertainties facing the Church and their plans and strategies for managing these risks to be:

Potential Risk Potential Impact Steps to mitigate risk
Security of assets • loss or damage
• theft of assets		 • review security arrangements
• asset register and inspection programme
• review insurance cover
Fund-raising • unsatisfactory returns
• lower number of donations due
to COVID pandemic
• reputational risks of campaign or
methods used
• actions of agents and
commercial fund-raisers
• compliance with law and
regulation		 • implement appraisal, budgeting and authorisation
procedures
• review regulatory compliance
• monitor the adequacy of financial returns achieved
• stewardship review
Disaster recovery and
planning		 • computer system failures or loss
of data
• destruction of property,
equipment, records through fire,
flood or similar damage		 • agree IT recovery plan
• implement data back up procedures and security
measures
• review insurance cover
• create disaster recovery plan
Cash flow sensitivities • inability to meet commitments
• lack of liquidity to cover variance
in costs
• impact on operational activities		 • ensure adequate cash flow projections (prudence of
assumptions)
• identify major sensitivities
• ensure adequate information flow from operational
managers
• monitor arrangements and reporting
Building facilities not
suitable for meeting
increased requirements
ofpotential hirers.		 • reduction in use of building by
third parties resulting in reduced
income		 • focus on fundraising efforts for the capital appeal

Reserves Policy

The PCC has established a policy whereby general unrestricted reserves held by the church should equate to approximately three months’ worth of unrestricted resources expended, currently c. £125,000. At this level, the PCC feel that they would be able to continue the current activities of the church in the event of a significant drop in funding.

The deficit of £160,136 (2020: deficit of £160,136) on the Capital Project Fund exceeds the General Unrestricted Fund of £147,924, leaving free funds of £nil (2020: £35,727) . The PCC intends to reinstate its reserve through fundraising activities for the Capital Appeal.

Fundraising

The PCC engaged in fundraising, in the form of receiving free-will offerings/donations, some of which were gift-aided, from members of our fellowship. The PCC did not contract the service of any professional fundraisers as defined by section 58 of the Charities Act 1992. The PCC is satisfied that its fundraising practices are ethical. No complaints were received about our fundraising practices.

Investment Policy

The church (through its trustees) has the power to invest in such stocks, shares, investments and property in the UK as deemed fit. The charity has made such investments to generate a return and has made no social investments.

6

ST PAUL’S, KNIGHTSBRIDGE ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Related parties

The St Paul’s Knightsbridge Foundation is a registered charity whose objects are to maintain and support in office a curate to the Vicar of St Paul’s Knightsbridge, London SW1 and to contribute towards the maintenance of the fabric, furnishings and equipment of the church, and support worship including performance of the choir and musical or artistic activities intended to encourage worship in St Paul’s Church.

The Reverend Alan Gyle (Vicar) and Ms Lorna Gradden (Churchwarden) served as trustees of the Foundation during 2021.

American Friends of St Paul’s Knightsbridge is a charitable organisation established in the United States of America whose object is to raise funds from American supporters of the church towards the Capital Appeal.

Noel Craven (PCC Treasurer) served as a trustee of the American charity during 2021.

Signed on behalf of the PCC

The Rev’d Alan Gyle Chairman

Date: 29[th] March 2022

7

ST PAUL’S, KNIGHTSBRIDGE INDEPENDENT EXAMINERS’ REPORT TO THE PAROCHIAL CHURCH COUNCIL OF ST PAUL’S, KNIGHTSBRIDGE

I report to the charity trustees on my examination of the accounts of the St Paul’s Parochial Church Council for the year ended 31 December 2021 set out on pages 9 to 21.

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 as 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 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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 that in any material respect:

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.

Miriam Hickson CTA FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Date:

8

ST PAUL’S, KNIGHTSBRIDGE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDING 31[ST] DECEMBER 2021

Unrestricted
Restricted
Endowment
Funds
Funds
Funds
Note
£
£
£
Income from:
Voluntary income
2(a)
239,574
107,313
-
Investments
2(b)
107
1
-
Church activities
2(c)
95,041
-
-
Activities for generating funds
2(d)
72,905
-
-
Other income
2(e)
-
-
-
Total income
407,627
107,314
-
Expenditure on:
Raising funds
3(a)
971
-
-
Church activities
3(b)
485,399
75,783
-
Total expenditure
486,370
75,783
-
Net income/(expenditure)
(78,743)
31,531
-

Transfers between funds
10
29,790
(29,790)
-
Net movement in funds
( 48,953)
1,741
-

Funds brought forward at 1 January 2021
276,950
(92,347)
10,000
Funds carried forward at 31 December 2021
227,997
(90,606)
10,000		 Total
Unrestricted
Restricted
Endowment
2021
Funds
Funds
Funds
£
£
£
£
346,887
245,969
91,783
-
108
57
-
-
95,041
56,567
-
-
72,905
66,273
-
-
-
9,348
-
-
514,941
378,214
91,783
-
971
1,170
-
-
561,182
438,985
7,712
-
562,153
440,155
7,712
-
( 47,212)
(61,941)
84,071
-
-
51,000
(51,000)
-
( 47,212)
(10,941)
33,071
-
194,603
287,891
(125,418)
10,000
147,391
276,950
(92,347)
10,000		 Total
2020
£
337,752
57
56,567
66,273
9,348
469,997
1,170
446,697
447,867
22,130
-
22,130
172,473
194,603

9

ST PAUL’S, KNIGHTSBRIDGE BALANCE SHEET AS AT 31[ST] DECEMBER 2021

Note
Fixed assets
Tangible fixed assets
6
Current assets
Debtors
7
Cash at bank and in Hand
Creditors
Amounts falling due within one year
8
Net current assets
Net assets
11
Parish Funds
Unrestricted
9
Restricted
10
Endowment
10		 2021
£
50,909
109,162
160,071
92,753		 £
80,073
67,318
147,391
227,997
( 90,606)
10,000
147,391		 2020
£
£
81,087
51,283
151,316
202,599
89,083
113,516
194,603
276,950
(92,347)
10,000
194,603

Approved by the Parochial Church Council 29[th] March 2022 and signed on its behalf by:

The Rev’d Alan Gyle

Chairman

10

ST PAUL’S, KNIGHTSBRIDGE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Cash (used)/ from operating activities(see below)
Cash flows (used in)/ from investing activities
Interest receivable
Payments to acquire tangible fixed assets

Cash (used in)/from investing activities
Net cash (outflow)/inflow
Cash and cash equivalents at 1 January 2021
Cash and cash equivalents at 31 December 2021
Cash (used in)/provided by operating activities
Net (expenditure)/income
Interest received shown in investing activities
Depreciation
Decrease/(increase) in debtors
Increase(Decrease) in creditors		 2021
£
108
(8,354)
 2020
£
£
£
(33,908)
16,900
57
-
( 8,246)
57
(42,154)
16,957
151,316
134,359
109,162
151,316
( 47,212)
22,130
( 108)
( 57)
9,368
9,283
374
(3,238)
3,670
(11,218)
( 33,908)
16,900
(
(

(

11

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] DECEMBER 2021

1 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102).The financial statements have been prepared under the historical cost convention. The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body nor those that are informal gatherings of Church members.

The PCC meets the definition of a public benefit entity under FRS102.

Going concern

The PCC have prepared detailed forecasts and cash flow projections which they believe are based upon reasonable assumptions. The forecasts show that the church should be able to operate for the foreseeable future and thus the trustees consider it appropriate to prepare the financial statements on a going concern basis.

Funds

General unrestricted funds represent the funds of the Parochial Church Council (PCC) that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC. Funds designated for a particular purpose by the PCC are also unrestricted.

Restricted funds are those subject to specific trusts, which may be declared by the donor or with their authority. The restricted funds of St Paul’s, Knightsbridge include restricted income funds which are expendable at the discretion of the PCC in furtherance of some particular aspects of the activities of the Church, and a restricted capital fund, whose income is restricted.

Income

Voluntary income

Income from investments

Church activities

Activities for generating funds

Other income

Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities.

Activities directly relating to the work of the Church

The Common Fund contribution is accounted for when payable. Any Common Fund payments unpaid at 31st December is provided for in these accounts as an operational (though not a legal) liability and is shown as a creditor in the balance sheet. It also includes costs incurred or payments made which are an integral part of expenditure on the PCC’s objects. These include governance costs which comprise all the expenditure incurred in connection with ensuring that the Parochial Church Council complies fully with its legal and regulatory obligations.

Raising Funds

This relates to the costs in respect of fundraising events and costs associated with the upkeep of the car park.

12

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

1 ACCOUNTING POLICIES (continued)

Grants

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC.

Pension costs

The Church participates in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.The Church Workers Pension Fund has a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.

Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending upon the investment returns and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable as set out in the Staff Costs note.

A valuation of the scheme is carried out once every three years. The most recent scheme valuation completed was carried out as at 31 December 2013. This revealed, on the ongoing assumptions used, a surplus of £0.5m. There is no requirement for deficit payments at the current time.

Pension Builder 2014 will be valued in relation to the lump sum payable to members at normal pension age. There are no annual pension benefits. Pension Builder 2014 commenced in February 2014 so the first full valuation of that section will be carried out at the next CWPF valuation date, 31 December 2016.

Fixed assets

Consecrated land and buildings and movable church furnishings

Consecrated or beneficed property is excluded from the accounts by Section 10(2)(a) of the Charities Act 2011.

Moveable church furnishings held by the churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted for as inalienable property unless consecrated. They are listed in the church’s Inventory, which can be inspected (at any reasonable time). For inalienable property acquired prior to 2000 there is insufficient cost information available and therefore such assets are not valued in the accounts. Items acquired since 1st January 2000 have been capitalised and depreciated on a straight-line basis in the accounts over their currently anticipated useful economic life

All expenditure incurred during the year on consecrated or benefice buildings, individual items under £1,000 or on repair of movable church furnishings acquired before 1st January 2000 is written off.

Other assets

The church hall has been included at 1996 valuation by the Parochial Church Council and is being depreciated over the period of the lease, which runs from 1996 to 2065. Improvements to the basement flat, which has been made available for the Church’s use, have been capitalised at cost. Equipment used within the church premises with a purchase price exceeding £1,000 is capitalised. Individual items of equipment with a purchase price of £1,000 or less are written off when the asset is acquired.

Depreciation is provided at the following rates to write off fixed assets over their useful lives:

Leasehold Church hall - Straight line over 68 years Improvements to basement flat - Straight line over 7 years Organ restoration - Straight line over 10 or 20 years Movable Church furnishings - Straight line over 20 years Furniture, fittings & equipment - Straight line over 4 or 7 years

13

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

1 ACCOUNTING POLICIES (continued)

Current assets

Income tax recoverable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the Church has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2 INCOME

Unrestricted
Restricted
Funds
Funds
£
£
2(a)
Voluntary income
Gift Aid donations
135,800
-
Grants awarded
-
-
Other donations
64,250
-
Income Tax Recovered
32,601
-
Collections (Open Plate)
6,923
-
Lent Appeal
-
840
Capital project fund
-
-
Dunhill Medical Trust income
-
5
QUEST income
-
32,000
Video Equipment Installation Grant
-
40,000
Sundry Donations and Appeals
-
34,468
239,574
107,313
2(b)
Investments
Bank Interest Receivable (UK)
107
1
107
1
2(c)
Church activities
Weddings and Blessings
5,697
-
Funerals and Memorials
12,380
-
Special Service Music Fees
45,233
-
Church Lettings
25,275
-
Hall Lettings
4,806
-
Production costs
-
-
Other Income
1,650
-
95,041
-
2(d)
Activities for generating funds
Car Park Income
54,220
-
Network rental income
17,731
-
Insurance claims
-
-
Events
954
-
72,905
-		 Total
2021
£
135,800
-
64,250
32,601
6,923
840
-
5
32,000
40,000
34,468
346,887
108
108
5,697
12,380
45,233
25,275
4,806
-
1,650
95,041
54,220
17,731
-
954
72,905		 Total
2020
£
145,882
7,328
50,857
38,078
3,824
2,259
38,209
55
16,000
-
35,260		 Total
2020
£
145,882
7,328
50,857
38,078
3,824
2,259
38,209
55
16,000
-
35,260

337,752



57
57
1,010
3,931
17,541
10,275
3,200
20,500
110
56,567
48,540
16,731
812
190
57
57
66,273

14

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

2 INCOME (continued)

2(e)
Other income
Government grants receivable - CJRS
Total income
 -
-
407,627		 -
-
107,314		 -
-
514,941		 9,348

9,348
469,997

3 EXPENDITURE

Unrestricted
Restricted
Funds
Funds
£
£
3(a)
Raising Funds
Fundraising
971
-
971
-
3(b)
Church Activities
Grants - Lent Appeal
-
1,050
Grants – Westminster schools
-
-
Common Fund
93,750
-
Incumbent Costs
557
-
Vicarage Expenses
1,913
-
Assistant Staff – Non-Stipendiary
4,800
-
Church Running Costs
33,342
-
Church Maintenance
37,270
-
Upkeep of Services
1,936
-
Hall Costs
4,288
-
Music Staff & Choir
58,016
-
Special Service Music Fees
44,845
-
Hall Rental
18,096
-
Staff Costs
102,440
30,341
Parish Office Expenses
43,230
-
Other Support Costs
1,558
-
Other Professional Services
9,198
-
Programme Costs
291
-
Independent Examination and accountancy
5,000
-
Video Production Costs
-
-
Vicar’s discretionary
-
-
Music Appeal
-
4,392
Mental Health First Aid Programme
-
-
Video equipment installation
15,501
40,000
Depreciation
9,368
-
485,399
75,783
Total expenditure
486,370
75,783		 Total
2021
£
971
971
1,050
-
93,750
557
1,913
4,800
33,342
37,270
1,936
4,288
58,016
44,845
18,096
132,781
43,230
1,558
9,198
291
5,000
-
-
4,392
-
55,501
9,368

561,182
562,153		 Total
2020
£
1,170

1,170

2,259
1,606
93,750
543
2,553
4,800
23,712
18,255
3,009
5,402
64,860
18,954
17,346
113,659
27,890
2,017
9,274
4,272
5,510
12,290
574
4,200
679
-
9,283

446,697

447,867

15

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

4 STAFF COSTS

Wages and salaries
Pension costs
Social security costs
Redundancy costs (included when legal agreement is reached)		 2021
£
104,759
7,943
7,644
-
120,346		 2020
£
89,132
7,216
6,717
4,580

107,645

The number of staff members during the year was 4 (2020: 5).

No employee was paid more than £60,000 in this or the preceding year.

The key management personnel listed on page 1 (members of the Standing Committee), received no remuneration from the church.

5 GRANTS PAYABLE

The PCC made the following charitable grants during the year: 2021 2020
£ £
Westminster Deanery Schools - 1,606
Bishop of London’s Lent Appeal 1,050 2,259
Total grants 1,050 3,865

6 FIXED ASSETS FOR USE BY THE PCC

Leasehold
Improvements
Moveable
Furniture,
church
to basement
Organ
church
fittings &
hall
flat
restoration
furnishings
equipment
£
£
£
£
£
Cost or Valuation
At 1st January 2021
100,000
13,190
137,870
19,695
186,383
Additions
-
-
-
-
8,354
At 31st December 2021
100,000
13,190
137,870
19,695
194,737
Depreciation
At 1st January 2021
36,764
13,190
137,870
13,596
174,631
Charge for the year
1,471
-
-
1,144
6,753
At 31st December 2021
38,235
13,190
137,870
14,740
181,384
Net Book Value
At 31st December 2021
61,765
-
-
4,955
13,353
At 31st December 2020
63,236
-
-
6,099
11,752		 Total
£
457,138
8,354
465,492
376,051
9,368
385,419
80,073
81,087

16

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

7 DEBTORS

Income tax recoverable
Other debtors
Prepayments and accrued income
 2021
£
8,980
34,668
7,261

50,909		 2020
£
13,612
29,237
8,434

51,283

8 CREDITORS: amounts falling due within one year

Other creditors
Accruals and deferred income
Social security and other taxes
 2021
£
13,956
74,161
4,636
92,753		 2020
£
15,962
70,378
2,743

89,083

9 UNRESTRICTED FUNDS

Total
General Fixed Asset Unrestricted
Fund Fund Funds
2021 2021 2021
£ £ £
Income 407,627 - 407,627
Expenditure (477,002) (9,368) (486,370)
Net income/(expenditure) ( 69,375) ( 9,368) (78,743)
Transfers 21,436 8,354 29,790
Net movement in funds ( 47,939) ( 1,014) ( 48,953)
Balance brought forward at 1stJanuary 2021 195,863 81,087 276,950
Balance carried forward at 31stDecember 2021 147,924 80,073 227,997

17

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

9 UNRESTRICTED FUNDS (continued)

Total
General Fixed Asset Unrestricted
Fund Fund Funds
2020 2020 2020
£ £ £
Income 378,214 - 378,214
Expenditure (430,872) (9,283) (440,155)
Net income/(expenditure) (52,658) (9,283) (61,941)
Transfers 51,000 - 51,000
Net movement in funds (1,658) (9,283) (10,941)
Balance brought forward at 1st January 2020 197,521 90,370 287,891
Balance carried forward at 31st December 2020 195,863 81,087 276,950

10 RESTRICTED AND ENDOWMENT FUNDS

Brought Income Expenditure Transfers Carried
forward forward
2021 2021 2021 2021 2021
£ £ £ £ £
Restricted Funds
Dunhill Medical Trust 1,748 6 - - 1,754
Eric Day Fund 34,702 - - - 34,702
Vicar’s Discretionary fund 10,217 - - - 10,217
Music Fund 4,750 34,468 (4,392) ( 30,000) 4,826
Capital project fund (160,136) - - - (160,136)
John King Church Plate Fund 8,500 - - - 8,500
Mental Health First Aid Programme 7,872 - - - 7,872
Lent Appeal - 840 (1,050) 210 -
QUEST fund - 32,000 (30,341) - 1,659
Video Equipment Installation Grant - 40,000 (40,000)
-		 -
( 92,347) 107,314 (75,783) (29,790) (90,606)

18

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

10 RESTRICTED AND ENDOWMENT FUNDS (continued)

Brought Income Expenditure Expenditure Transfers Transfers Carried
forward forward
2020 2020 2020 2020 2020
£ £ £ £ £
Restricted Funds
Dunhill Medical Trust 1,693 55 - - 1,748
Eric Day Fund 34,702 - - - 34,702
Vicar’s Discretionary fund 10,791 - ( 574) - 10,217
Music Fund 8,690 35,260 (4,200) (35,000) 4,750
Capital project fund (198,345) 38,209 - - (160,136)
John King Church Plate Fund 8,500 - - - 8,500
Mental Health First Aid Programme 8,551 - ( 679) - 7,872
Lent Appeal - 2,259 (2,259) - -
QUEST fund - 16,000 - (16,000) -
(125,418) 91,783 (7,712) (51,000) (92,347)
Brought Income Expenditure Transfers Carried
forward forward
2021 2021 2021 2021 2021
£ £ £ £ £
Endowment Funds
Dunhill Capital Fund 10,000 - - - 10,000
Brought Income Expenditure Transfers Carried
forward forward
2020 2020 2020 2020 2020
£ £ £ £ £
Endowment Funds
Dunhill Capital Fund 10,000 - - - 10,000

Dunhill Medical Trust

This Fund is the income and expenditure relating to the Dunhill Medical Trust restricted capital (endowment) fund (see below).

Eric Day Fund

This fund represents a legacy received from the estate of Eric Charles Day. It is to be expended on the maintenance of the furnishings and fabric of the Chancel Sanctuary or St Luke’s Chapel.

Vicar’s Discretionary Fund

This fund represents monies available for the Vicar to spend on pastoral matters at his discretion.

Music Fund

This fund supports and extends the music making of the Church both in regular and occasional services, recitals and concerts, maintaining musical instruments and supporting the musical life of the Church. The transfer druing the year comprises the surplus from the Music Dinner applied, as advertised, towards the regular music costs of the church.

19

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

Capital Project Fund

This has been embarked upon in order to significantly enhance the fabric of St. Paul's Knightsbridge so as to accommodate the ever changing uses of this beautiful public building. Fundraising began during 2018 and it is anticipated that future fundraising will cover the deficit on this fund.

John King Church Plate Fund

This fund represents a grant received from the St Paul’s Knightsbridge Foundation, in memory of the late John King, sometime head server at St Paul’s, and is to be expended on the acquisition, maintenance and/or conservation of church plate and/or vestments.

Mental Health First aid Programme

This fund represents donations received towards the setting up of a Mental Health First Aid training programme.

Lent Appeal Fund

This is a fundraising event during lent from which the amount raised is ordinarily contributed to the dioceses chosen charities. On occasion charities selected by the PCC are in receipt of funds from the lent appeal. The transfer during the year was made to cover the Gift Aid claimed on these donations.

QUEST Fund

This fund represents grants from the St Paul’s Knightsbridge Foundation to fund the Director of QUEST role.

Video Equipment Installation Grant

This is a grant received from the St Paul’s Knightsbridge Foundation towards the cost of installing a new video equipment.

Dunhill Capital Fund

Restricted capital funds comprises of £10,000 (2020: £10,000) attributable to the Dunhill Medical Trust. This is a permanent endowment, which requires the income to be spent on work with the elderly members of the congregation.

20

ST PAUL’S, KNIGHTSBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[st] DECEMBER 2021

11 ANALYSIS OF NET ASSETS BY FUND

Unrestricted
Restricted
Endowment
Funds
Funds
Funds
2021
2021
2021
£
£
£
Fixed assets
80,073
-
-
Current assets
240,677
(90,606)
10,000

Current liabilities
( 92,753)
-
-
(
227,997
(90,606)
10,000

Unrestricted
Restricted
Endowment
Funds
Funds
Funds
2020
2020
2020
£
£
£
Fixed assets
81,087
-
-
Current assets
284,946
(92,347)
10,000

Current liabilities
( 89,083)
-
-

276,950
(92,347)
10,000
 Total
2021
£
80,073
160,071
92,753)
147,391
Total
2020
£
81,087
202,599
( 89,083)
194,603

12 COMMITMENTS

The total future minimum lease payments under non-cancellable operating leases are payable:

Within one year
After one year but within five years
The operating lease charges for the year were:
Land
Other		 2021
£
23,801
33,521
57,322
17,321
4,560
21,881		 2020
£
23,801
56,205
80,006
17,321
6,520
23,841

13 RELATED PARTY TRANSACTIONS

PCC members are not remunerated and no PCC member was reimbursed during the year for expenses in relation to their work as trustees (2020: £Nil). During the year, unrestricted income of £28,375 (2020: £30,176 ) and restricted income of £3,150 ( 2020 : £23,200) was received from PCC members and their related parties. The premium paid for the trustees and individual liability insurance in the year was included within the overall insurance policy purchased.

During the year, PCC received a restricted grant of £72,000 from The St Paul’s Knightsbridge Foundation ( 2020: £16,000). This has been recognised in the financial statements as Video Equipment Installation and QUEST Fund in restricted funds. The St Paul’s Knightsbridge Foundation paid professional costs of £15,720 ( 2020: £ nil) on behalf of the Church. These amounts have been recognised in these financial statements as Other donation income and Church activities expenditure.

The Church also received a restricted grant of £nil ( 2020: £38,209) and an unrestricted grant of £nil (2020: £5,288) from the American Friends of St Paul’s.

21