Annual Report and Accounts
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2022
Annual Report and Accounts of the Parochial Church Council 2022
C o n t e n t s
| 2022 – Foreword / Churchwardens Report | 1 |
|---|---|
| Administrative Details | 8 |
| Membership of the PCC | 9 |
| Appointments | 10 |
| Sunday Attendance | 11 |
| Financial review | 12 |
| Income – Signs of Recovery | 12 |
| 2022 Pressure on the General Fund | 12 |
| Expenditure – Parish Share | 12 |
| Expenditure – Keeping our Doors Open | 12 |
| Risk Review and Reserves policy | 13 |
| Financial Reserve Policy | 13 |
| Statement of Trustees’ Responsibilities | 13 |
| Independent Examiner’s Report | 14 |
|---|---|
| The Accounts for 2022 | |
| Statement of Financial Activities (SoFA) | 15 |
| Balance sheet as at 31st December | 16 |
| Notes to the Financial Statements | |
| Accounting policies | 17 |
| Income | 18/19 |
| Expenditure | 20/21 |
| Fixed Assets Investment | 22 |
| Current Assets | 23 |
| Unrestricted Funds | 24 |
| Restricted funds | 25 |
| Endowment funds | 26 |
| Summary of unrestricted and restricted funds | 27 |
| Pension Scheme | 28 |
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Foreword
Structure, Governance and Membership
The Parochial Church Council (PCC) is a registered charity, number 1136159 and is constituted under the Parochial Church Council Powers Measure (1956) as amended and Church Representation Rules. Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. The PCC members during 2022 are detailed on page 9.
PCC Objectives
To promote the whole mission of the Church in the city centre of Manchester. To enable adults and children to come to faith and live a full Christian life. To maintain and make available the parish
church for the use of the community, in particular to allow a place of quiet and prayer, to maintain an historic place of worship, to support people in need and to promote appropriate music.
Churchwardens Report
2022 saw some big changes at St Ann’s. In November our Rector, Canon Nigel Ashworth, left us after 14 years of dedicated service, to take up the post of Canon Pastor at Manchester Cathedral. We have been very blessed by his leadership and wish him fulfilment and happiness. In August our Director of Music Simon Passmore also left, to focus on his young family and seek to develop a new career in composition alongside his full-time job at Chetham’s School. We are enormously grateful for his years of service and wish him every success in the future.
Services
Throughout 2022, St Ann’s offered five regular Services every week: Said Communion at 9 am on Sunday and at 1 pm on Tuesday and Thursday, Sung Eucharist at 10.45 on Sunday and Sunday Evensong at 5 pm. In addition, we gave several Services to mark Festivals and other special occasions, notably at Easter, during Advent and over Christmas. There were 8 weddings and 7 baptisms during the year. An evening Lent Course run by Canon Ashworth was well attended and much appreciated.
The Area Dean of Manchester South and Stretford, Rev’d Nick Watson, has oversight of St Ann’s during the Interregnum. Working alongside our Churchwardens and our Church Manager William Jeavons, Nick has gone very far beyond the call of duty and devoted a great deal of time and energy both to the provision of Priests to take our Services and to other Parish matters. We are immensely grateful to him for his very hard work and for his unfailing patience and good humour.
With very few exceptions, we were able to continue our regular pattern of Sunday and mid-week Services, run a full and very meaningful programme of Advent and Christmas Services, and fulfil all our numerous commitments to hosting the Christmas Services and events of a wide range of local schools, businesses, charities and other organisations. Thanks must go first to our self-supporting Ministers Canon Alma Servant and Fr Keith Henshall, who were ‘first call’ in case of any absences during Canon Ashworth’s tenure, and who have been immensely helpful in coming forward to run Services since his departure. We are also very grateful to all the Priests who have responded to the call and offered beautiful Services for our congregations.
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Music
Before his departure, Simon Passmore led the annual Choir Tour – on this occasion, to the Cathedrals of Blackburn and Ripon. Between Simon’s departure and the appointment of his successor, the music and the choir were very ably run by our Assistant Director of Music Dr James Hume, who stepped up to the plate with generosity and considerable skill.
In October, we were able to appoint Alexander Rebetge as our new Director of Music. Alex comes from a fine tradition of music-making, having previously worked in Nurnberg and Berlin and as Assistant Director of Music at the Windsbacher Knabenchor in Bavaria. He is also currently following the postgraduate conducting course at the Royal Northern College of Music. As well as making a successful start in his musical post, Alex has quickly settled in as an integral and valued member of our congregation.
Alex Rebetge writes:
Being the Director of Music at St Ann’s is a great honour and joy to me.
I would like to thank James Hume for all the work, thought and effort he put into music at St Ann’s during the demanding time between Simon Passmore’s departure and my arrival.
One of our first tasks was to find and audition a new Organ Scholar. Saul Knights was appointed the 2022/23 Pilling Trust Organ Scholar.
In addition to the Sunday Services, my first two months in post included the annual Remembrance Day Service and the whole Christmas season. This was a musically exciting and challenging time. We performed many pieces, both familiar and new – especially in Advent and for the Festival of Nine Lessons and Carols. Challenging
repertoire for the choir included Pӓrt’s Magnificat, Lauridsen’s O Nata Lux and Britten’s A Hymn to the Virgin.
The choir had to adapt to a new style of choral practice and conducting, focusing on vocal technique and diction. A slightly smaller repertoire was used to ensure a good musical quality despite all the changes. During these two months, we were also able to attract two new members to the choir.
In December we re-established the weekly organ recital series on Wednesday lunchtimes, which had been interrupted following Simon’s departure. The recitals are supplemented on the first Wednesday of the month by recitals by students from the RNCM.
As well as the RNCM, we seem to have remained the venue of choice for the Piccadilly Sinfonietta, Manchester Baroque and the Cervantes Institute; and a regular venue for the Manchester Jazz Festival, among others. We are immensely grateful to them for their continued confidence and support.
Congregation and Visitor Numbers
Like most churches, St Ann’s was badly affected by the COVID-19 Pandemic. Our congregation reduced in number, our activities went down and fewer people visited.
Rebuilding our church community was – and remains – a very high priority.
As shown by the analysis on page 11, our congregation has not yet fully returned to pre-pandemic numbers, but there are clear signs of recovery. We have been delighted to welcome a number of new members who are already contributing significantly to our church life.
Visitor numbers have also shown strong signs of recovery and are almost back to 2019 levels. Welcoming visitors to our church and
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making their visit as rewarding and meaningful as possible is a vital part of our Mission. Nobody contributes more to this work than our exceptional Verger Paul Campion BEM; as well as being a welcoming and informative guide to the tourists who come to Manchester from all over Great Britain and every country of the world, he is also a real support to people who come in with anxieties, practical problems, and spiritual needs. Many thanks are due to him.
As is recorded elsewhere in this Report, our COVID Recovery Fund raised a very satisfying £10,470, mostly due to the generosity of church members and visitors.
Churchyards
During the year we were able to bring to a satisfactory conclusion a lengthy dispute with Manchester City Council about the ownership and control of our own churchyard (the land immediately surrounding the Church). The settlement included the cessation and removal of an unsightly and occasionally disruptive catering operation. We look forward to a more productive relationship with the City Council, through which we hope to establish a clear policy for the use of the paved area to the south of the Church. Our preference, which we will attempt to promote, would be for a calm and peaceful area of retreat, ideally with a small garden or suitable planting, and businesses which would contribute to that restful atmosphere.
The disused churchyard of the long-demolished St Andrew’s Church in Ancoats also lies within our Parish, and as noted in last year’s Report, we have found it necessary to enter into litigation to prevent its unsuitable use. This process has continued throughout the year and has brought a considerable load of strain and stress, both to the PCC and other members of our congregation, and to our finances. The case went to mediation in early 2023 and has been concluded, subject to
the fulfilment of certain legal obligations. A full report will be included in next year's Annual Report
Health & Safety
Alan Green, nominated PCC Health & Safety officer, writes:
In relation to the work which the health and safety officer carried out during 2022 it is basically related to complying with statutory requirements which in 2022 we dealt with gas safety certification in relation to the gas boilers and the central heating system. We were able to get a gas certificate, with the certification required annually.
The heating system is on its last legs we are using spare parts which Global Heating obtained from a redundant system in Woking and there are no spare parts available for the Hamworthy gas-fired boilers, which are nearly 50 years old. As you are aware the boilerl system needs to be renewed including proposed air pumps and some years ago, we obtained quotations by John Book acting as our M and E consultant (he specialises in ecclesiastical work) if there is a failure for the system then we cannot repair and we would be without heating. It will be necessary to attempt to obtain funds for the replacement of the current heating system as soon as possible.
A faculty for this work was applied for in March 2019, and a Statement of Need was prepared and submitted to the Diocesan Advisory Committee. Whether this Statement is still extant I do not know at this juncture.
Currently, we have only two trained first aider: Paul Campion our Verger and William Jeavons our Church Manager. However, even though we have asked on several occasions for members of the congregation and PCC members to attend a first aid training course that has been resistance in the past, and I think it necessary for whoever takes over as Health & Safety Officer to progress this matter as quickly as possible.
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In addition, the three yearly testing of the fixed wiring system occurred resulting in the system being slightly defective and work being carried out by the Electrical contractors Addisons, who know the system intimately, as well as the three yearly PACC testing being carried out.
We also annually test the security and fire alarm systems with approved contractors, all of whom have produced appropriate risk assessments prior to carrying out work. In addition, firefighting equipment is tested annually and recharged or replaced as necessary. Further, in 22 the lightning conductor was checked and certified as being fully functioning in accordance with statutory requirements.
In addition, the Health & Safety Officer together with the Church Manager and the Verger ensures that appropriate protective equipment is available and in satisfactory order, this includes signage indicating that there is a potential safety risk from slippage on wet floors etc.
safeguarding.stannsmanchester@gmail.com. During our Vacancy, the second port of call is safeguarding@manchester.anglican.org. These contact details are displayed in the Church.
At present we have a limited number of children in our regular congregation. However, the church is open to the public and very much visited by a wide range of people, including both children and vulnerable adults. It is our aim to create an environment which is welcoming and respectful and enables safeguarding concerns to be raised and responded to openly, promptly and consistently.
We have procedures in place to deal promptly with safeguarding allegations or suspicions of abuse in accordance with the relevant policy and practice guidance and in consultation with the Diocesan Safeguarding Adviser. All safeguarding concerns or allegations against church officers will be reported to the Diocesan Safeguarding Adviser;
The Church Community
The Health and Safety officer also monitors health and safety legislation whether it applies to the church or not, currently the fire risk assessments are based upon the Regulatory Reform (Fire Safety) order 2005 effective from 1 October 2006.
I had carried out an asbestos survey in 2016 and this is only effective for a 10 year period after which a new survey will need to be carried out.
Our Christian Mission encourages us all to be helpers, and it is heartwarming to see how many of our congregation contribute in so many ways to the life of our church – as welcomers, sidespersons, stewards; intercessors, readers, Eucharistic lay assistants; coffeemakers, brasspolishers and flower arrangers; and in so many other ways. Some examples are given below. We are immensely grateful not only to the people named, but also to all those who contribute in any way to our church life.
Safeguarding at St Ann’s
St Ann’s has adopted the House of Bishops ‘Promoting a Safer Church; safeguarding policy statement’.
Our Parish Safeguarding Officer is Andrew Kyle, a retired teacher with 8 years’ experience as a Year Head in a City Centre Secondary School. He can be contacted at
Some Examples of Service as a Volunteer
Sidespersons and Stewards
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Andrew Kyle writes:
We now have a full team of 16 sidespersons for our 10.45 Sunday Service, plus one or two reserves. This means that sidespersons can work in teams of four, each team having a regular monthly slot. In months when there is a fifth Sunday a team is put together on an ad hoc basis. We have no shortage of volunteers.
Sunday Evensong is normally managed by only one sidesperson, and this is usually the same person, though there are one or two reserves we can call on. We are seeking to recruit a slightly larger team to make the work less onerous.
When we have outside events or additional Services (for example in the weeks leading up to Christmas), members of the congregation are invited to come forward to represent the Church, offer a welcome, and ensure an orderly event. Again, we are blessed with a really good number of potential volunteers, though more are always welcome.
Grateful thanks are due to all those who contribute to the welcoming atmosphere at both Services and events, their smooth and successful running, and public safety.
Saturday Café
Sandra Davies writes:
St Ann’s Saturday Café is open every Saturday from 11 am to 3.30 pm, unless there is a wedding. The café is organised by myself and Andrew Kyle and run by a group of 6 volunteers. The cakes are home-baked, mostly by Andrew, with each volunteer adding to the goodies when it is their turn in the café.
We have a number of regular customers who come in every week, others who come in from time to time when they’re in town, and many visitors to the church, both British and foreign. Chatting to them can be
very interesting. Everyone is welcomed as they come in, whether they just want a quiet cuppa or a longer chat – some may not have spoken to many people all week long. We also do take-aways and accept card payments – very 21[st] century!
Sometimes we are treated to music, either from the organ or rehearsals by groups performing in the evenings.
Weekly takings average £150-175, reaching £200 on a good week. All the baked goods are donated, so all the takings are a much-needed boost to church funds.
Home-made cakes, coffee or tea, a friendly welcome and music. You don’t get that in other coffee shops, and we charge less than they do. What’s not to like?!
Cleaning and shop
Jean Casewell writes:
My work starts on a Sunday after the morning Service when I collect the linen used during our Services for laundering at home. During the week, Frances Brierley and I also clean the brasses in the church.
In a team with Ottmar Morett and William Jeavons, I help to look after the cards and gifts for sale at the back of church. I make the knitted ‘Cross-in-my-pockets’, which sell very well. At Easter I am busy making knitted Easter chicks, which I sell stuffed with a cream egg in the weekends before Easter. On Easter Sunday, all the children attending church go home with a chick. We also celebrate Mothering Sunday by giving a bunch of daffodils and a card to all the ladies in church.
Throughout the year, I prepare knitted items for sale at our Christmas Fair and other fund-raising events. I make novelty trees, Santa hats, snowmen, and puddings stuffed with a chocolate orange.
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Sunday Catering
Joan Goodwin writes:
It is a great pleasure to be able to provide tea and coffee after our beautiful morning Service so that we can spend a little informal time together chatting. Everyone gets the opportunity to meet up with old and meet new friends, and to get to know visitors and visiting clergy. From time to time, the organisation of light refreshments after Services also provides an opportunity to celebrate birthdays and other personal or family celebrations.
This social time is often mentioned by visitors who return while revisiting the city, and also residents who discover what St Ann’s has to offer and decide to become members of the congregation.
Event Catering
Ottmar Morett writes:
’Praise him with tambourine and dance; praise him with strings and pipe! (Psalm 150:4)’
Musings from behind the bar: Why would you venture into town on a Saturday (or Thursday) evening? Is it not filled with lager-louts and poorly behaved youngsters? Not so, I say (at least not in our small corner of the city).
After an extended hiatus, due to the pandemic, we have been able to welcome people for musical events into the church. Warren MailleySmith has returned with the Piccadilly Sinfonietta, which has quickly become one of the busiest chamber orchestras in the UK since its formation in 2017, specialising in virtuoso concerti from the baroque, classical and romantic periods. We also welcomed back the Instituto Cervantes for various concerts in collaboration with the Consulate General of Spain.
While trying to bring order in the chaos of some of the events, these give us as church the chance for a much wider outreach. Some of the events are far too busy for anything but a brief chat with visitors, but during others a chat can go a long way. I hear it over and over that people have lived in the city for many years (if not their whole life) but never stepped into the church. Most are pleasantly surprised by the building and are amazed that they can take drinks into the church. A quick mention that we have wine and bread every Sunday makes them smile.
In addition to providing some income for the church, with fees and bar takings, concerts in church can make people feel welcome and give them an opportunity to step into a building they normally would not venture into. The evening can be hard work, but also, they can be very rewarding.
I understand that some people might be against a bar in the church building, however Isaiah said: “On this mountain the Lord of hosts will make for all peoples a feast of rich food, a feast of well-aged wine, of rich food full of marrow, of aged wine well refined.” (25:6). The Lord will share a drink with us in heaven. So while I do not say that we are already in heaven, we can at least give them a foretaste of what lies ahead.
Outings and events
Jennifer Frew writes:
Two outings were held during 2022. In August, a group of us spent a sunny afternoon in the new RHS Bridgewater Gardens, and at
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Christmas Elizabeth Agbettoh organised an evening at the Royal Exchange Theatre to see the new musical Betty – about Betty Boothroyd and starring Maxine Peake.
On 15[th] July we were again able to celebrate with gratitude the birthday of our founder Lady Ann Bland, by holding a short Service of Thanksgiving at St James’ Church Didsbury where members of Lady Ann’s family are buried and laying a posy of flowers on her Memorial. The Service was conducted by Alma Servant and attended by the Lord Mayor of Manchester.
This year we were honoured to be able to unveil a Memorial to commemorate the bravery of members of the Parachute Regiment, which was based at Manchester Airport (then known as Ringway) during the Second World War. It now graces the wall of our Chapel. We are always pleased to receive visits from members of the Regimental Association.
Thank you again to everyone who supports St Ann’s and our Christian mission in the heart of Manchester.
Jennifer Frew, Andrew Kyle, Michael Johnson, Alan Green
St Ann’s, Churchwardens
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Administrative details
Insurers
Address
St Ann’s Church St Ann Street Manchester M2 7LF Telephone: 0161 834 0239
Website
www.stannsmanchester.com
Rector
The Revd Canon Nigel Ashworth until November 20[th] 2022. From this date the position has been vacant.
Church Manager
William Jeavons manager@stannsmanchester.com
Ecclesiastical Insurance Group PLC Beaufort House Brunswick Road Gloucester GL1 1JZ
Architect
Buttress Architects 41 Bengal Street Manchester M4 6AF
Solicitor
Donna Myers Diocesan Registrar St John’s House 155-163 The Rock Bury BL9 0ND
Bankers
CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
Safeguarding Co-ordinator
Andrew Kyle safeguarding.stannsmanchester@gmail.com
Charity Registration
St Ann’s PCC is Registered Charity Number 1136159
Independent Examiner
Eric Langer, Langer & Co, Chartered Accountant Statutory Auditor 8-10 Gatley Road Cheadle Cheshire SK8 1PY
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Membership of the Parochial Church Council
The following members served during the year:
Clergy clergy licensed by the bishop serve ‘ex-officio’. The Revd Canon Nigel Ashworth Rector – until November 20[th] 2022 The Revd Sydwell Isaac Curate - until January 18[th] 2022
Churchwardens up to four Churchwardens are elected for each twelve-month term. Jennifer Frew Alan Green Michael Johnson Andrew Kyle
Deanery Synod Members Term of office 2020 -2023. Jennifer Frew until April 6[th] 2022 Stacy Fox-Manning Martin Gregson from APCM 2022 Andrew Kyle
Elected Members serving until the APCM of 2022 Term of office 2019 – 2022. Stacy Fox-Manning elected APCM 2019 Ken Halliwell re-elected APCM 2019 Martin Gregson elected APCM 2020
Elected Members serving until the APCM of 2023 Term of office 2020 – 2023. Linda Norris re-elected APCM 2020 Dr James Hume elected APCM 2020 Sue Watson co-opted June 2021 – resigned November 16[th] 2022
Elected Members serving until the APCM of 2024 Term of office 2021 – 2024. Sarah Johnston elected APCM 2021 Susan Soanes re-elected APCM 2021 David Robinson until April 6[th] 2022
The Parochial Church Council is a registered charity no 1136159.
PCC members are trustees of the charity. Its work is set out in the Parochial Church Powers measure 1956. PCCs work in co-operation with their Rector
“in promoting in the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical”.
Elected Members serving until the APCM of 2025 Term of office 2022 – 2025. Ken Halliwell re-elected APCM 2022 Helen Lacy elected APCM 2022
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Appointments
Vice Chairman Jennifer Frew
PCC Treasurer
Susan Soanes
Health & Safety Officer
Alan Green
Church Manager William Jeavons
Verger Paul Campion
Director of Music
Simon Passmore until July 31 2022 Alexander Rebetge from October 21 2022
Pilling Trust Organ Scholar Saul Knights from November 2022
PCC Secretary Stacy Fox-Manning
Electoral Roll Officer
Michael Johnson
Safeguarding Co-ordinator
Andrew Kyle
Bookkeeper
Alison Steadman
Assistant Director of Music
Dr James Hume
Associate Organ Scholar Stephen Aldridge
St Ann’s is not only an important building, but it is a worshipping community of Christians.
We are grateful to be able to gather together again.
This year, we have seen a welcomed return to a greater sense of normality.
Thank you to everyone who has continued to give their financial support during this time.
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Sunday Attendance
The church keeps a record of attendances at services. These graphs present total Sunday attendances over an eleven-year period and then an average annual attendance for the three different Sunday services.
Total Annual Sunday Attendance
Over the last ten years there have been around 7,000 – 8,000 annual attendances at the usual Sunday services in St Ann’s. The majority of these are for the 10.45 am service whilst the evening service and the 9.00 am service are less well attended in that order.
The total aggregated service attendance dropped massively in 2020 due to five months of not being able to hold services in the church but has recovered somewhat up to the period at the end of 2022, though not yet returning to pre-Covid times. The total increased by just over 25% from 2021 to 2022.
Annual Sunday Congregation Numbers
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9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
09:00 10:45 05:00 TOTAL
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Median Annual Sunday Attendance
The median attendance values on Sundays for each of the last ten years show a downward trend over the last three years. The median average value was chosen to not distort the figures with occasional very well attended services like those running up to Christmas. The median value represents the middle value if the congregation count for every service that went ahead was ranked in order of size.
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Median Annual Sunday Congregation
Numbers
140
120
100
80
60
40
20
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
09:00 10:45 05:00 TOTAL
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Conclusions
Median annual congregation numbers at the 10:45 am Sunday service have been falling slowly over the last three years. This has been made more pronounced by the pandemic. However, looking at the numbers at a monthly level, it is clear that over the course of 2021 figures have made some improvement which has continued in 2022, showing an increase of over 30% in 2022 and an increase of over 40% in the total Sunday congregational figures.
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Financial review
The PCC is responsible for overseeing the finances of the church and making key decisions about matters which have an impact on income and expenditure. Day-to-day business is devolved by the PCC to the Treasurer and the Bookkeeper, principally by agreeing a budget for the forthcoming year and then reviewing spending under its budget categories in detail every few months.
Income
Total income on unrestricted funds for the year was £147,674 (2021: £113,966). We are seeing signs of a recovery following the impact of the pandemic on our income and is more in line with pre-pandemic levels.
Donations have increased on 2021 by around £10K: 2022 £97,782 (2021 £87,932) and are now like pre-pandemic levels. Of note are donations received in church; church boxes and candlestands saw a £9K increase on 2021 with these improving as the year went on.
We received an Energy grant from the Church of England for £1,250 to support the Parish with increased utility costs. A legacy was received from Alec Mitchell of £14,701 for general fund purposes which was gratefully received.
Fundraising activities have started to improve from 2021 £8,289 to 2022 £18,287 which is encouraging. In 2019 when we had a full programme of events income was c£35k. These bookings are starting to recover and increased as the year went on, so we look forward to this being continued.
Expenditure
Total expenditure on unrestricted funds for the year was £121,580 (2021: £110.554). Due to the need to protect the capacity of the General Fund to continue basic operations and to bring the reserve closer to the policy agreed by the PCC last year, the decision was again made to not pay our Parish Share in full. The PCC was also influenced by anxiety about the impact on next year's budget of legal fees in connection with the St Andrew's Churchyard litigation. This has always been a really important part of the PCC's thinking about Parish Share. The PCC has paid 50% of the £67,500 share due 2022: £33,750 (2021: £32,625).
Areas to note are Staff costs 2022: £41,175 (2021:35,741), with 2021 being lower due to furlough of the Verger for part of that year.
Energy costs saw an increase - 2022 £7,133 (2021: £4,668). We were fortunate to fix into a gas contract during 2021 for three years. For electricity we had to renew at much higher rates. We have had the benefit of the Government Energy Bill Relief Scheme for the last quarter of the year and the Church of England Grant. This area will though see increased costs in 2023.
We have been waiting on a decision for the derating of the Flower Stall following the demolition. The Stall has not been in use since 2019 and the VOA (valuation office agency) confirmed the derating on 31 December 2019. This gave us a net refund for the year of £4,731.
During the year there were some maintenance issues; there was considerable electrical work totaling £3,384. We also replaced many items relating the sound system totaling £3,480 to ensure the quality of sound needed in Church.
The Covid Recovery Fund was established in 2021 to assist our financial recovery; during 2022 the Fund balance of £11,425 was applied into the PCC’s General Fund. This along with a surplus on the year of £25,810 gave a balance on General Fund at the end 2022 at £83,996 (2021: £46,761). This position was better than anticipated, brought us closer to the reserve requirement and was improved with the Church of England energy grant, late notification of the Flower Stall rebate and an increase in donations and fundraising income towards the end of the year.
Restricted funds See Page 25 for Fund balances and income received. Of note, we continue to benefit from the annual grant from The Pilling Trust Fund for £9,300 for the Music activities in Church.
Expenditure
Organ fund - maintenance costs of £2,219. Music fund -£4,300 towards musician and music costs. Homelessness fund – The PCC made a donation of £1,000 to Barnabus Manchester, a homelessness charity. Education and Training - £79 on books. Flower fund - £114 for flowers in church.
Exterior fabric fund - £2,316 for Flagpole repair and maintenance. Land and Property fund - £24K for legal fees relating to the Churchyards.
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Risk review and reserves policy
The PCC has considered key risks around the stewardship of a Grade I listed church building, the health and safety of worshippers and members of the public using the building and the financial challenges associated with the economic climate and its effect on sources of income.
The PCC reviewed the Reserves Policy in light of the Pandemic. It was then discovered that the reserve policy was inadequate in that it did not fully take into account the ‘disaster scenario’ of costs associated with the potential redundancy of staff, which would have triggered its liability in respect of the Church Workers’ Pension Fund (see page 24).
Financial Reserve Policy
The PCC, in line with Charity Commission requirements, recognises the need to have a target for free reserves to cover the following contingencies:
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Up to four months’ PCC expenditure in a ‘normal’ year, to enable the PCC’s activities to be scaled down in a ‘disaster scenario’, being presently set at £56,000.
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The cost of staff redundancy in the case of a ‘disaster scenario’ in addition to the above. This currently stands at £46,000.
Therefore, the PCC now assesses its reserve requirement at £102,000. At 31st December 2022 there was a General Fund balance of £83,996.
Statement of Trustees’ responsibilities
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
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Select suitable accounting policies and apply them consistently
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Observe the methods and principles in the Charities Statement of Recommended Practice (SORP)
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Make judgments and estimates that are reasonable and prudent
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State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are 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.
Approved by the members of the PCC on April 20 April 2023 and signed on their behalf by
Jennifer Frew, Vice Chairman
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Independent Examiner’s report to the members of St Ann’s PCC
I report on the accounts of the Charity for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 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 material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Eric Langer, BSc FCA Chartered Accountant Independent Examiner 8-10 Gatley Road Cheadle Cheshire SK8 1PY
Date:17[th] May 2023
- the accounts do not accord with those records; or
Page 14
| Parochial Church Council | of St | Ann’s Manchester | Ann’s Manchester | STATEMENT OF FINANCIAL ACTIVITIES | STATEMENT OF FINANCIAL ACTIVITIES | STATEMENT OF FINANCIAL ACTIVITIES | STATEMENT OF FINANCIAL ACTIVITIES | ||
|---|---|---|---|---|---|---|---|---|---|
| for the year ended | 31st December 2022 | ||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | ||
| Unrestricted | Restricted | Endowment | TOTAL | Unrestricted | Restricted | Endowment | TOTAL | ||
| Note | £ | £ | £ | £ | £ | £ | £ | £ | |
| INCOME FROM | 2 | ||||||||
| I Donors at Church | 97,782 | 1,364 | - | 99,146 | 87,932 | 13,595 | - | 101,527 | |
| II Outside Donors | 17,504 | 9,300 | - | 26,804 | 5,699 | 9,300 | - | 14,999 | |
| III Fundraising activities | 18,287 | - | - | 18,287 | 8,289 | - | - | 8,289 | |
| IV Charitable activities | 5,091 | - | - | 5,091 | 3,683 | - | - | 3,683 | |
| V Investment income | 9,170 | 2,183 | - | 11,353 | 8,363 | 867 | - | 9,230 | |
| TOTAL INCOME | 147,834 | 12,847 | - | 160,681 | 113,966 | 23,762 | - |
137,728 | |
| EXPENDITURE ON | 3 | ||||||||
| VI Grants & Mission giving | 25 | 2,550 | - | 2,575 | 25 | 3,400 | - | 3,425 | |
| VII Charitable activities | 113,987 | 31,508 | - | 145,495 | 96,750 | 31,590 | - | 128,340 | |
| VIII Fundraising costs | (2,247) | - | - | (2,247) | 4,965 | 807 | - | 5,772 | |
| IX Church administration | 9,815 | - | - | 9,815 | 8,804 | - | - | 8,804 | |
| TOTAL EXPENDITURE | 121,580 | 34,058 | - | 155,638 | 110,544 | 35,797 | - |
146,341 | |
| NET INCOME / (EXPENDITURE) | |||||||||
| BEFORE INVESTMENT GAINS / | 26,254 | (21,211) | - | 5,043 | 3,422 | (12,035) | - |
(8,613) | |
| (LOSSES) | |||||||||
| GAINS / (LOSSES) ON INVESTMENTS |
5 | - | - | (43,644) | (43,644) | - | - | 66,025 | 66,025 |
| NET INCOME / (EXPENDITURE) | 26,254 | (21,211) | (43,644) | (38,601) | 3,422 | (12,035) | 66,025 |
57,412 | |
| TRANSFERS BETWEEN FUNDS | - | - | - | - | - | 158,586 | (158,586) | - | |
| NET MOVEMENT IN FUNDS | 26,254 | (21,211) | (43,644) | (38,601) | 3,422 | 146,551 | (92,561) | 57,412 | |
| BALANCES BROUGHT FORWARD | 9 | 57,742 | 184,486 | 374,029 | 616,257 | 54,320 | 37,935 | 466,590 | 558,845 |
| BALANCES CARRIED FORWARD | 83,996 | 163,275 | 330,385 | 577,656 | 57,742 | 184,486 | 374,029 | 616,257 | |
| The Notes on pages 17 to 28 form | part of these accounts. |
Page 15
| Parochial Church Council of St | Parochial Church Council of St | Ann’s Manchester | Ann’s Manchester | BALANCE SHEET | BALANCE SHEET | ||||
|---|---|---|---|---|---|---|---|---|---|
| as at 31st December 2022 | |||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | ||
| Unrestricted Restricted | Endowment | TOTAL | Unrestricted | Restricted | Endowment | TOTAL | |||
| Note | £ | £ | £ | £ | £ |
£ | £ | £ | |
| FIXED ASSETS | 5 | ||||||||
| Investments | 13,500 | - | 330,385 | 343,885 | 13,500 |
- |
374,029 | 387,529 | |
| 13,500 | - | 330,385 | 343,885 | 13,500 |
- | 374,029 | 387,529 | ||
| CURRENT ASSETS | 6 | ||||||||
| Stock | 144 | - | - |
144 | 361 |
- |
- |
361 | |
| Debtors | 12,840 | 524 | - | 13,364 | 7,961 |
- |
- |
7,961 | |
| Cash at Bank | 67,512 | 165,395 | - | 232,907 | 39,527 |
195,513 |
- |
235,040 | |
| 80,496 | 165,919 | - | 246,415 | 47,849 |
195,513 | - | 243,362 | ||
| CREDITORS - Due Within One | 7 | ||||||||
| Year | |||||||||
| Accruals & other creditors | 10,000 |
2,644 | - | 12,644 | 3,607 |
11,027 |
- |
14,634 | |
| 10,000 |
2,644 | - | 12,644 | 3,607 |
11,027 | - | 14,634 | ||
| NET CURRENT ASSETS | 70,496 | 163,275 | - | 233,771 | 44,242 |
184,486 | - | 228,728 | |
| NET ASSETS | 83,996 | 163,275 | 330,385 | 577,656 | 57,742 |
184,486 | 374,029 | 616,257 | |
| FUNDS | |||||||||
| Unrestricted | 9a | 83,996 | - | 83,996 | 57,742 |
- | 57,742 | ||
| Restricted | 9b | 163,275 | - | 163,275 | 184,486 | - |
184,486 | ||
| Endowment | 9c | - | - | 330,385 | 330,385 | - |
- |
374,029 | 374,029 |
| 8 | 83,996 | 163,275 | 330,385 | 577,656 | 57,742 |
184,486 | 374,029 | 616,257 | |
| Approved by the Parochial Church Council | |||||||||
| on April 20th 2023. | |||||||||
| Jennifer Frew – Vice | Chairman | ||||||||
| The Notes on pages 17 to 28 form part of these accounts. |
Page 16
Parochial Church Council of St Ann’s Manchester NOTES TO THE FINANCIAL STATEMENTS for the year ended 31st December 2022
1. ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below and have been consistently applied throughout the year. Basis of preparation and assessment of going concern.
The financial statements have been prepared on an accruals basis in accordance with the Church Accounting Regulations 2006 together with applicable UK accounting standards, the Charites Act 2011 and the SORP 2015. The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible. 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. Fund accounting
Endowment Funds are funds, the capital of which must be maintained; only income arising from investment may be used either as restricted or unrestricted funds depending upon the purpose for which the endowment was established. Restricted Funds represent (a) income from trusts or endowments which may be expended only on those restricted activities provided in the terms of the trust or bequest, and (b) donations or grants received for a specific purpose or invited by the PCC for a specific purpose. The funds may only be expended on the purpose for which they were given. Any balance remaining unspent at the end of the year is carried forward as a balance on that fund. The PCC does not normally invest separately for each fund and, when necessary, interest is apportioned to individual funds. Unrestricted Funds are general funds which can be used for PCC ordinary purposes.
Incoming Resources
Planned giving, collections and donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is received. Grants and Legacies are accounted for when the PCC is legally entitled to the amounts. All other income is recognised when it is received. All income is accounted for gross. Resources expended
Grants and donations are accounted for when paid over, or when awarded, if a binding obligation on the PCC exists. Amounts received and subsequently expended specifically for mission are dealt with as restricted funds. The parish share is accounted for when payable. No provision is made for any parish share which may be requested but is unpaid by the date the Diocese closes its records for a particular year. All other expenditure is generally recognised when it is incurred and is accounted for gross.
Fixed Assets
Consecrated and benefice property is not included in the accounts as set out by s.10 of the Charities Act 2011. Moveable church furnishings held by the Rector and Churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the Church inventory. All such expenditure has been written off when incurred. Administrative equipment used within the church premises is included in fixed assets if the cost exceeds £2,000 otherwise it is written off in the year as consumables. Fixed assets are depreciated on a straight line basis over the estimated useful life, usually at 25% pa. Investments
Investments are valued at market value at 31st December each year. Stocks and work in progress Stock is valued at the lower of cost and net realisable value.
The members are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements.
Page 17
| Parochial Church Council | of St Ann’s | Manchester | Manchester | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS |
|---|---|---|---|---|---|---|---|---|---|
| for the year ended | 31st December 2022 | ||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | ||
| 2. INCOME | Unrestricted | Restricted | Endowment | TOTAL | Unrestricted | Restricted | Endowment | TOTAL | |
| £ | £ | £ | £ | £ | £ | £ | £ | ||
| I Donors at Church | |||||||||
| Planned giving - Gift Aided | 31,462 | - | - | 31,462 | 40,404 | - | - | 40,404 | |
| Planned giving - non-Gift Aided | 762 | - | - | 762 | 480 | - | - | 480 | |
| Other giving - Gift Aided | 13,662 | 570 | - | 14,232 | 6,267 | 2,500 | - | 8,767 | |
| Other giving | 17,077 | - | - | 17,077 | 8,245 | - | - | 8,245 | |
| Tax recoverable | 11,316 | 794 | - | 12,110 | 13,475 | 625 | - | 14,100 | |
| Collections at services | 7,767 | - | 7,767 | 13,022 | 10,470 | - | 23,492 | ||
| Church Boxes & Candle stands | 15,736 | - | - | 15,736 | 6,039 | - | - | 6,039 | |
| 97,782 | 1,364 | - | 99,146 | 87,932 | 13,595 | - | 101,527 | ||
| II Outside Donors | |||||||||
| Church of England Energy Grant | 1,250 | - | - | 1,250 | - | - | - | - | |
| Pilling Trust | - | 9,300 | - | 9,300 | - | 9,300 | - | 9,300 | |
| HMRC Job retention Scheme* | - | - | - | - | 4,624 | - | - | 4,624 | |
| LPW VAT Scheme* | 1,553 | - | - | 1,553 | 1,075 | - | - | 1,075 | |
| Legacies | 14,701 | - | - | 14,701 | - | - | - | - | |
| 17,504 | 9,300 | - | 26,804 | 5,699 | 9,300 | - | 14,999 |
- Public sector revenue grants received - 2022:£1,553 (2021:£5,699) ; Grants were received from the HMRC Coronavirus Job Retention Scheme towards wages of furloughed staff due to the Covid-19 pandemic. The Listed Places of Worship (LPW) VAT Scheme gives grants that cover the VAT incurred in making repairs to listed buildings in use as places of worship. The PCC receives these funds as a reimbursement of VAT paid on eligible expenditure. Other Grants received 2022: £10,550 (2021:£9,300).
Page 18
| Parochial Church Council of St Ann’s | Parochial Church Council of St Ann’s | Manchester | Manchester | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS |
|---|---|---|---|---|---|---|---|---|---|
| for the year ended | 31st December 2022 | ||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | ||
| 2. INCOME (cont) | Unrestricted | Restricted | Endowment | TOTAL | Unrestricted | Restricted | Endowment | TOTAL | |
| £ | £ | £ | £ | £ | £ | £ | £ | ||
| III Income from Fundraising Activities | |||||||||
| Recitals & events | 6,524 | - | - | 6,524 | 4,895 | - | - | 4,895 | |
| Café, refreshments, retail | 11,053 | - | - | 11,053 | 2,817 | - | - | 2,817 | |
| Church Fairs | 710 | - | - | 710 | 577 | - | - | 577 | |
| 18,287 | - | - | 18,287 | 8,289 |
- | - | 8,289 | ||
| IV Income from Charitable Activities | |||||||||
| Facilities Fees | 2,595 | - | - | 2,595 | 1,649 | - | - | 1,649 | |
| Statutory Fees - weddings & funerals |
2,496 | - | - | 2,496 | 2,034 | - | - | 2,034 | |
| 5,091 | - | - | 5,091 | 3,683 |
- | - | 3,683 | ||
| V Investment Income | |||||||||
| Dividends - Ecclesiastical investments |
9,063 | 2,183 | - | 11,246 | 8,362 | 867 | - | 9,229 | |
| Interest - other investments | 107 | - | - | 107 | 1 | - | - | 1 | |
| 9,170 | 2,183 | - | 11,353 | 8,363 |
867 | - | 9,230 | ||
| TOTAL INCOME | 147,834 | 12,847 | - | 160,681 | 113,966 |
23,762 | - | 137,728 |
Page 19
| Parochial Church Council | of St Ann’s | Manchester | Manchester | NOTES TO THE | NOTES TO THE | FINANCIAL STATEMENTS | FINANCIAL STATEMENTS | FINANCIAL STATEMENTS |
|---|---|---|---|---|---|---|---|---|
| for the year ended | 31st December 2022 | |||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | |
| 3. EXPENDITURE | Unrestricted | Restricted | Endowment | TOTAL | Unrestricted | Restricted | Endowment | TOTAL |
| £ | £ | £ | £ | £ | £ | £ | £ | |
| VI Grants & Mission giving | ||||||||
| Pilling Scholars / music grants | - | 1,550 | - | 1,550 | - | 2,400 | - | 2,400 |
| Church organisations & charities | 25 | 1,000 | - | 1,025 | 25 | 1,000 | - | 1,025 |
| 25 | 2,550 | - | 2,575 | 25 | 3,400 | - | 3,425 | |
| VII Charitable Activities | ||||||||
| Ministry - Parish Share | 33,750 | - | - | 33,750 | 32,625 | - | - | 32,625 |
| Clergy expenses | 1,165 | - | - | 1,165 | 490 | - | - | 490 |
| Rectory council tax & expenses | 2,668 | - | - | 2,668 | 2,243 | - | - | 2,243 |
| Church electricity/gas/water | 7,133 | - | - | 7,133 | 4,668 | - | - | 4,668 |
| - Cleaning / hygiene | 380 | - | - | 380 | 555 | - | - | 555 |
| - Minor repairs/ servicing | 9,185 | 2,316 | - | 11,501 | 2,124 | 1,176 | - | 3,300 |
| - Organ maintenance | - | 2,219 | - | 2,219 | - | 2,199 | - | 2,199 |
| - Choir / Music | - | 320 | - | 320 | - | 735 | - | 735 |
| - Parish training & mission | 60 | 79 | - | 139 | 57 | - | - | 57 |
| - insurance | 8,908 | - | - | 8,908 | 8,670 | - | - | 8,670 |
| - security | 948 | - | - | 948 | 720 | - | - | 720 |
| Church services | 2,036 | 114 | - | 2,150 | 1,423 | 80 | - | 1,503 |
| Legal fees | - | 24,000 | - | 24,000 | - | 25,000 | - | 25,000 |
| Staff Costs – Wages and Salaries | 41,175 | - | - | 41,175 | 35,741 | - | - | 35,741 |
| Director of Music & assistant fees | 6,579 | 2,460 | - | 9,039 | 7,434 | 2,400 | - | 9,834 |
| 113,987 | 31,508 | - | 145,495 | 96,750 | 31,590 | - | 128,340 |
Page 20
| Parochial Church Council of St Ann’s Manchester | Parochial Church Council of St Ann’s Manchester | Parochial Church Council of St Ann’s Manchester | Parochial Church Council of St Ann’s Manchester | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS |
|---|---|---|---|---|---|---|---|---|---|---|---|
| for the year ended | 31st December | 2022 | |||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | ||||
| 3. EXPENDITURE (cont) | Unrestricted | Restricted | Endowment | TOTAL | Unrestricted | Restricted | Endowment | TOTAL | |||
| £ | £ | £ | £ | £ | £ | £ | £ | ||||
| VIII Fundraising costs | |||||||||||
| Café, refreshments & retail | 1,761 | - | - | 1,761 | 1,150 |
- | - | 1,150 | |||
| Flower Stall | (4,731) | - | - | (4,731) | 3,488 | - | - | 3,488 | |||
| Contactless giving / envelope scheme | 723 | - | - | 723 | 303 |
- | - | 303 | |||
| Cost of events (Incl Performing rights) | - | - | - | - | 24 |
807 | - | 831 | |||
| (2,247) | - | - | (2,247) | 4,965 | 807 | - |
5,772 | ||||
| IX Church administration | |||||||||||
| Printing, Stationery, postage, telephone |
2,609 | - | - | 2,609 | 2,954 |
- | - | 2,954 | |||
| Computer software licenses | 305 | - | - | 305 | 301 |
- | - | 301 | |||
| Sundries | 371 | - | - | 371 | 170 |
- | - | 170 | |||
| Bank Charges | 6,530 | - | - | 6,530 | 5,379 |
- | - | 5,379 | |||
| Accountancy / Independent Examination |
9,815 | - | - | 9,815 | 8,804 |
- | - |
8,804 | |||
| TOTAL EXPENDITURE | 121,580 | 34,058 | - | 155,638 | 110,544 |
35,797 | - |
146,341 | |||
| 4. STAFF COSTS | 2022 | 2021 | |||||||||
| £ | £ | ||||||||||
| Wages and Salaries | 38,124 | 33,008 | |||||||||
| Pension | 3,051 | 2,733 | |||||||||
| National Insurance | - | - | |||||||||
| Director of Music & Assistants fees | 9,039 | 9,834 | |||||||||
| 50,236 | 45,575 | ||||||||||
| The PCC employs a verger, Church manager and Director of Music. A PAYE scheme is operated for these staff. Members of the PCC receive | no | remuneration for acting as | |||||||||
| such. One Trustee receives a fee for the position of Assistant Director of Music and other music services they provide 2022: £4,765 (2021: £3,673). | Expenses paid to the trustees in | ||||||||||
| the year totalled £1,698 (2021-£1,463), 3 trustees were reimbursed. Clergy expenses (to 1 trustee) totalling £1,165 (2021-637). £533 | (2021 -£826) were reimbursed to 3 trustees to | ||||||||||
| pay for materials and items for church activities. |
Page 21
| Parochial Church Council of | St Ann’s Manchester | St Ann’s Manchester | St Ann’s Manchester | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS |
|---|---|---|---|---|---|---|---|---|
| for the year ended 31st December 2022 | ||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | |||
| 5. FIXED ASSET INVESTMENTS | Unrestricted Endowment | TOTAL | Unrestricted | Endowment | TOTAL | |||
| £ | £ | £ | £ | £ | £ | |||
| Market Value 1 January | 13,500 | 374,029 | 387,529 |
13,500 | 466,590 | 480,090 | ||
| Acquisitions | - | - | - |
- | (158,586) | (158,586) | ||
| Net gains / (losses) on revaluation | - | (43,644) | (43,644) | - | 66,025 | 66,025 | ||
| Market Value 31 December | 13,500 | 330,385 | 343,885 |
13,500 | 374,029 |
387,529 | ||
| Investments are held as follows | ||||||||
| No. of units | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | ||
| held | Value | Unrestricted Endowment | TOTAL | Unrestricted | Endowment | TOTAL | ||
| at year end | per unit | £ | £ | £ | £ | £ | £ | |
| National Savings Income Bonds | 13,500 | £1.0000 | 13,500 | - | 13,500 |
13,500 | - | 13,500 |
| CCLA Church of England Funds: | ||||||||
| CBF Investment Fund Income shares | 7,970.00 | £20.6459 | - | 164,548 | 164,548 |
- | 186,392 | 186,392 |
| COIF Investment Fund Income shares | 8,425.58 | £18.1493 | - | 152,918 | 152,918 |
- | 173,034 | 173,034 |
| Income fund Accumulation shares | 2,623.78 | £4.9238 | - | 12,919 | 12,919 |
- | 14,603 | 14,603 |
| 13,500 | 330,385 | 343,885 | 13,500 | 374,029 | 387,529 | |||
| The PCC has charitable endowments derived from two closed registered charities, The Manchester St Ann’s Educational Foundation (also known as St | ||||||||
| John’s Educational Trust) and The Charity of Eleanora Atherton. Income from the investments related to the Educational Foundation former charity are | ||||||||
| used for educational purposes within the | parish and income from the investments related to the Atherton Charity are available for the general | purposes of | ||||||
| the PCC. | ||||||||
| The PCC is also the beneficial trustee of an endowment | charity deriving from two schools of former city centre parishes. This is the St Ann Ecclesiastical | |||||||
| Charity. The Diocesan Board of Finance has the role of Custodian Trustee. | ||||||||
| Further details regarding the endowment funds are given in note 9c on page 26. |
Page 22
| Parochial Church Council of St Ann’s Manchester | Parochial Church Council of St Ann’s Manchester | Parochial Church Council of St Ann’s Manchester | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | NOTES TO THE FINANCIAL STATEMENTS | |
|---|---|---|---|---|---|---|---|---|
| for the year | ended 31st December 2022 | |||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | |
| 6. CURRENT ASSETS | Unrestricted | Restricted | Endowment | TOTAL | Unrestricted | Restricted | Endowment | TOTAL |
| £ | £ | £ | £ | £ | £ | £ | £ | |
| Stocks | ||||||||
| Gifts/Cards supplies | 144 | - | - | 144 | 361 | - | - | 361 |
| 144 | - | - | 144 | 361 | - | - | 361 | |
| Debtors | ||||||||
| Income tax recoverable | 3,561 | - | - | 3,561 | 1,803 | - | - | 1,803 |
| Other income receivable | 9,279 | 524 | - | 9,803 | 6,158 | - | - | 6,158 |
| 12,840 | 524 | - | 13,364 | 7,961 | - | - | 7,961 | |
| Bank | 67,512 | 165,395 | - | 232,907 | 39,527 | 195,513 | - | 235,040 |
| TOTAL CURRENT ASSETS | 80,496 | 165,919 | - | 246,415 | 47,849 | 195,513 | - | 243,362 |
| 7. LIABILITIES - due within one year | ||||||||
| Accruals & deferred income | 9,341 | 2,644 | - | 11,985 | 3,134 | 11,027 | - | 14,161 |
| PAYE/NI | - | - | - | - | - | - | - | - |
| Pension Fund | 659 | - | - | 659 | 473 | - | - | 473 |
| TOTAL CURRENT LIABILITIES | 10,000 | 2,644 | - | 12,644 | 3,607 | 11,027 | - | 14,634 |
| 8. ANALYSIS OF NET ASSETS BY | ||||||||
| FUND | ||||||||
| Fixed Assets | 13,500 | - | 330,385 | 343,885 | 13,500 | - | 374,029 | 387,529 |
| Current Assets | 80,496 | 165,919 | - | 246,415 | 47,849 | 195,513 | - | 243,362 |
| Current Liabilities | (10,000) | (2,644) | - | (12,644) | (3,607) | (11,027) | - | (14,634) |
| 83,996 | 163,275 | 330,385 | 577,656 | 57,742 | 184,486 | 374,029 | 616,257 |
Page 23
for the year ended 31st December 2022
9a UNRESTRICTED FUNDS
| Covid Recovery | GENERAL | Total | |
|---|---|---|---|
| £ | £ | £ | |
| INCOME | |||
| I Donors at Church | 465 | 97,317 |
97,782 |
| II Outside Donors | - | 17,504 |
17,504 |
| III Income from Fundraising activities | - | 18,287 |
18,287 |
| IV Income from Charitable activities | - | 5,091 |
5,091 |
| V Investment income | - | 9,170 |
9,170 |
| TOTAL INCOME | 465 | 147,369 | 147,369 |
| EXPENDITURE | |||
| VI Grants & Mission giving | - | 25 |
25 |
| VII Charitable activities | - | 113,987 |
113,987 |
| VIII Fundraising costs | 21 | (2,268) |
(2,247) |
| IX Church administration | - | 9,815 | 9,815 |
| TOTAL EXPENDITURE | 21 | 121,559 |
121,580 |
| NET INCOME / (EXPENDITURE) | 444 | 25,810 |
26,232 |
| TRANSFERS IN / (OUT) | (11,425) | 11,425 | - |
| NET MOVEMENT IN FUNDS | |||
| (10,981) | 37,235 | 26,254 | |
| BALANCES BROUGHT FORWARD | |||
| 10,981 | 46,761 | 57,742 |
|
| BALANCES CARRIED | |||
| FORWARD | - | 83,996 | 83,996 |
Page 24
Parochial Church Council of St Ann’s Manchester NOTES TO THE FINANCIAL STATEMENTS for the year ended 31st December 2022
| 9b RESTRICTED FUNDS | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Organ | Music | Choir Support |
Homelessness | Education & Training |
Flowers | Heating | Land & Property |
Exterior Fabric |
Decorating | Total | ||
| £ | £ | £ | £ | £ | £ | £ | £ | £ | ||||
| INCOME | ||||||||||||
| I Donors at Church | 120 | - | 794 |
440 | - | - |
- |
- | 10 |
- |
1,364 |
|
| II Outside Donors | - | 9,300 | - |
- |
- |
- | - |
- | - |
- |
9,300 |
|
| III Income from | - | - |
- | - |
- |
- |
- |
- | - |
- |
- |
|
| Fundraising activities | ||||||||||||
| IV Income from Charitable | - | - |
- |
- |
- |
- |
- |
- | - |
- |
- |
|
| activities | ||||||||||||
| V Investment income | 10 | 32 |
23 | 1 |
909 |
- |
23 |
1,179 | 3 | 3 | 2,153 |
|
| TOTAL INCOME | 130 | 9,322 | 817 | 441 | 909 | - | 23 | 1,179 |
13 | 3 | 12,847 |
|
| EXPENDITURE | ||||||||||||
| VI Grants & Mission giving | - | 1,550 |
- | 1,000 |
- |
- | - |
- | - |
- |
2,550 |
|
| VII Charitable activities | 2,219 | 2,780 |
- | - |
79 |
114 | - | 24,000 |
2,316 | - | 31,508 |
|
| VIII Fundraising costs | - | - |
- | - |
- |
- |
- |
- | - |
- |
- |
|
| IX Church administration | - | - |
- |
- |
- |
- |
- |
- |
- | - |
- |
|
| TOTAL EXPENDITURE | 2,219 | 4,330 | - | 1,000 | 79 | 114 | - | 24,000 | 2,316 | - | 34,058 | |
| NET INCOME / | (2,089) | 5,002 | 817 | (559) | 830 | (114) | 23 | (22,821) | (2303) | 3 | (21,211) | |
| (EXPENDITURE) | ||||||||||||
| TRANSFERS IN / (OUT) | - | - |
- |
- |
- |
- |
- |
- | - | - |
- |
|
| NET MOVEMENT IN FUNDS | (2,089) | 5,002 | 817 | (559) | 830 | (114) | 23 | (22,821) | (2,303) | 3 | (21,211) |
|
| BALANCES BROUGHT | 6,633 | 11,718 |
10,000 |
1,228 |
4,938 |
114 |
11,114 |
133,586 |
3,824 |
1,331 | 184,486 |
|
| FORWARD | ||||||||||||
| BALANCES CARRIED | 4,544 | 16,720 | 10,817 | 669 | 5,768 | - | 11,137 | 110,765 | 1,521 | 1,334 | 163,275 | |
| FORWARD |
Page 25
Parochial Church Council of St Ann’s Manchester NOTES TO THE FINANCIAL STATEMENTS for the year ended 31st December 2022
9c. ENDOWMENT FUNDS
The PCC is Beneficial Trustee of an endowment charity deriving from two former city centre parishes, St Peter's and St Matthew's, which was created by a Charity Commission Scheme in the 1990s. The object of the fund is "furthering the religious and other charitable work in the Parish". During 2021, the Charity Commission gave its permission for a portion of this endowment to be released to be used by the PCC for restricted purposes in relation to land and property.
During 2020 the PCC became the beneficial owner of the assets and took over the charitable purposes relating to two former charities, The Manchester St Ann’s Educational Foundation (also known as St John’s Educational Trust) and The Charity of Eleanora Atherton. The PCC undertook to preserve the value of the charities and preserve the names within its accounts. These are endowment funds, where the capital is invested to generate income. Income from the Educational Foundation is restricted to educational purposes within the parish and income from the Eleanora Atherton Charity is available for the general purposes of the PCC, i.e. is unrestricted.
| Balance at 1st January Gains /(Losses) on investments Balance at 31st December |
St Ann's Ecclesiastical Charity St John’s Educational Trust Eleanora Atherton Trust Total £ £ £ £ 166,859 34,135 173,035 374,029 (19,528) (4,000) (20,116) (43,644) |
|---|---|
| 147,331 30,135 152,919 330,385 |
Page 26
9d. SUMMARY OF RESTRICTED AND UNRESTRICTED FUNDS
for the year ended 31st December 2022
The General Fund represents the amounts available to the PCC to meet its ongoing obligations, based on the assumption that restricted funds and designated funds are not available for general use. In accordance with recommended practice for charities, the PCC aims for the General Fund to retain monies representing its financial reserve (see page 13). The PCC now assesses its reserve requirements at £102,000. At 31st December 2022 there was a General Fund balance of 83,996.
Designated Funds
From time to time the PCC receive income which is not restricted to prescribed uses but which it considers should be used for a specific project. Year-end balances are carried forward for future projects.
Restricted Flowers Fund
Donations are received specifically towards flower costs. The balance of the fund at the end of the year is carried forward.
Restricted Heating Fund
Donations received towards the cost of heating repairs will be carried forward until there is sufficient to pay for the project.
Restricted Homelessness Fund
Various grants and donations are received to support homelessness projects. Any balance of the fund at the end of the year is carried forward.
Restricted Land and Property Fund
Restricted Choir Support Fund
This fund was opened in 2021 to manage a donation received to support the ministry of St Ann's choir, specifically for music and the provision of equipment.
Restricted Decorating Fund
Donations and other income were received in prior periods relating specifically to decorating church and maintaining church furnishings. The balance of the fund at year end is carried forward.
Restricted Education & Training Fund
Investment income from the St John's Educational Trust Endowment Fund is available to support educational projects.
Restricted Exterior Fabric fund
A legacy (in 2020) from the late Ruth Gee established this fund ‘for the maintenance and repair of the exterior fabric’. The balance of the fund at the end of the year is carried forward.
During 2021, with the approval of the Charity Commission, the PCC released funds from the Ecclesiastical Endowments to support expenditure related to land and property.
Restricted Music Fund
Donations, grants and other income is received specifically towards running costs of the choir and music services, including grants from the John Pilling Trust to fund organ scholars and other musical activities. The balance of the fund at the end of the year is carried forward.
Restricted Organ Fund
Donations and other income is received relating specifically to maintenance of the organ. Funds are retained for future costs of a major cleaning project.
Page 27
Parochial Church Council of St Ann’s Manchester NOTES TO THE FINANCIAL STATEMENTS for the year ended 31st December 2022
10 PENSION SCHEME
St Ann’s PCC participates in the Pension Builder Scheme section of the Church Workers Pension Fund (CWPF) for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers. The Fund has two sections: (1) the Defined Benefits Scheme, and (2) the Pension Builder Scheme, which has two subsections:
a) a deferred annuity section known as Pension Builder Classic, and,
b) a cash balance section known as Pension Builder 2014.
Pension Builder Scheme
Both sections of the Pension Builder Scheme are classed as defined benefit schemes: Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors. Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age sixty five. There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs on page 21 are the contributions payable (2022: £3,051, 2021: £2,733). A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31st December 2019. The next valuation is due as at 31st December 2022 and is not yet available.
For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. The legal structure of the scheme is such that if another employer fails, the PCC could become responsible for paying a share of the failed employer’s pension liabilities. The actuarial valuation at 31st December 2019 specifically for St Ann's PCC, indicated that the PCC may have a liability to contribute a lump sum should all employees of the PCC leave the scheme. On that date it was estimated that the amount due would have been £28,400 plus cessation costs - a typical level of expenses for this would be of the order of £4,000 plus VAT. 11 POST BALANCE SHEET MATTER Following the year end, mediation regarding St Andrew’s churchyard has been concluded subject to future legal undertakings and the issuing of a new license for use. Further expenditure will be incurred in 2023 but not anticipated beyond.
Page 28