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2023-12-31-accounts

Parish of Merstham

PCC report

and financial statements

for the year ended 31 December 2023

[The Parochial Church Council of the Ecclesiastical Parish of Merstham]

Charity No. 1139490

CONTENTS

Page
PCC report 1 – 6
Independent Examiner’s Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the financial statements 10 – 19

Parish of Merstham Annual Report for year ended 31 December 2023

(1)

PCC report

The members of the PCC present their annual report and financial statements of the Parish of Merstham for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the governing documents, Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and Activities

The primary object of the PCC is the promotion of the Gospel of the Lord Jesus Christ according to the doctrines and practices of the Church of England. The PCC is tasked with co-operating with the minister in promoting in the parish the whole mission of the Church; pastoral, evangelistic, social and ecumenical.

As a Parish Church within the Church of England’s Diocese of Southwark, St Katharine’s Church exists for the benefit of the wider community as well as for those who form part of the week-by-week worshipping community. With this in mind our activities have been a combination of those for the worshipping community together with others aimed at the wider community through pastoral care or missionary and outreach.

In order to accomplish these objectives it is important that we maintain the fabric of the church buildings.

The members of the PCC have complied with the duty in Section 4 of the 2006 Charities Act to have due regard to guidance published by the Charity Commission, including public benefit guidance.

The parish

The parish of Merstham is in the Diocese of Southwark and is within Reigate Deanery. The parish is part of the Merstham and Gatton Team Ministry under the terms of a Pastoral Scheme pursuant to the Pastoral Measure 1983 made by the Church Commissioners on 29 March 2010 and which came into effect on 1 April 2010.

Following the closure of the Church of the Epiphany in January 2015 the parish has only one place of worship: the Parish Church is St Katharine, on Church Hill, Merstham, RH1 3BJ.

Merstham & Gatton Team Ministry is composed of the parishes of Merstham (St Katharine), Gatton (St Andrew), and South Merstham (All Saints). There is a Team Council which has representatives from the three parishes; it meets up to four times per year and reports back to the respective PCCs.

Team Rector

Revd Nigel Griffiths

The Rectory, Battlebridge Lane, Merstham, RH1 3LH

Revd Griffiths was licensed as Team Rector on 5[th] September 2023.

Team Vicar

Vacancy

Honorary Curate

Vacancy

Readers

Mrs Christiana Agwuegbo

Churchwardens

Mr Simon Beirne Mr Chris Green

Parish of Merstham Annual Report for year ended 31 December 2023 (2)

Achievements and Performance

Worship and prayer

Within the parish the PCC aims to offer a variety of services during the week and throughout the year to cater for different groups within the community. These range from organised services such as our regular Sunday worship, including Holy Communion, to less formal and less structured meetings such as study groups and prayer meetings.

The Parish provides a range of regular and extra festival and seasonal services over the course of the year that our community has found both beneficial and spiritually fulfilling, and regularly provides hospitality for special Team Services.

Regular Service Pattern

Following the departure of Revd Mark Pullinger in October 2022, the usual service pattern changed as our total clergy complement was just one Licensed Reader. A Worship Group was set up to lead services during the year. We were greatly assisted by Revd Sue Weakley, a retired NSM who very generously offered to lead us in Holy Communion on the first Sunday of each month. We also welcomed Revd Raymond Bayley (retired clergy from St Barnabas) and Revd Catherine Dawkins (retired clergy) who occasionally led us in communion. Following the licencing of Revd Nigel Griffiths, and with the assistance of retired NSM Revd Rob Kenyon, we once again adopted a regular service pattern of Holy Communion on the first and third Sundays each month, Morning Worship on the second Sunday, and a Team service at All Saints on the last Sunday.

Occasional Offices

During 2023 one baptism and two weddings were celebrated in the church. No funeral services were held in the church, but there were three instances of interment of cremated remains in the churchyard.

Electoral Roll and Church Attendance Report

In December 2023 there were 34 members on the roll. The Electoral Roll will next be due for revision in April 2024.

Pastoral Care

The Merstham Estate is an area where there are extensive plans for regeneration, and it is deemed a ‘priority area’ by Surrey County Council due to levels of deprivation in pockets of the estate.

The provision of community facilities at the corner of Bletchingley Road and Portland Drive within the estate continues to offer a wide range of resources to the community, and amongst the Library and a café the building also houses the Merstham Community Facilities Project.

St Katharine’s Church Room is used for various church activities, including PCC meetings and after-service coffee on Sundays. The Church Room also has regular weekly bookings by non-church groups.

The Women’s Support Group is a closed group, now in its twenty-fifth year. It meets on most Thursday mornings, at All Saints, South Merstham. The group is led by a member of the St Katharine’s congregation who is a retired Occupational Therapist who worked in mental health. The group provides opportunities to discuss personal issues in a confidential and mutually supportive environment and to develop self-awareness.

Safeguarding Report

The church implements the ‘Safe Church’ diocesan policy. A copy of the policy is displayed in the church porch and a copy is also kept securely. Regular updates are inserted into the policy and where appropriate members of the PCC are encouraged to attend the Safeguarding and Vulnerable adults training provided by the Diocese. Regular newsletters are shared with PCC and Junior church leaders. All DBS checks are up to date or being renewed. We are grateful for the work of Mr Simon Beirne and Mrs Maggie Kippen, our Safeguarding officers, who generously share their overview with St Andrew, Gatton.

Mission and outreach

The Team Ministry endeavours to provide information and communication to parishioners and the general public by several means.

Parish of Merstham

Annual Report for year ended 31 December 2023

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The Messenger , the parish magazine for Merstham and Gatton, is produced monthly online, with a very few paper copies distributed to those unable to access the internet. It contains information regarding church-associated events held within the Team Ministry together with general local services and charity/alternative events held within the wider community.

The website for the Team Ministry is at www.mgtmchurches.org and provides details of church services and activities, as well as information about weddings, marriages and funerals and how to make contact with parish staff.

Information is also displayed on notice boards at the church and published in a weekly news-sheet.

Quality Street Fair is now a predominantly community-led, rather than church-led, event, and takes place in September. St Katharine’s Supper, celebrating our Patronal Saint, took place in the Church Room at the end of November.

The weekly ecumenical prayer meeting has been able to continue at the Community Hub.

Ecumenical relationships

The churches continue to be involved in ecumenical activities as part of the Churches Together in Merstham group and would usually hold joint activities such as the World Day of Prayer, Lent Groups and Lent Lunches, Good Friday Walk of Witness, and Carol singing at Christmas. Some of these have still not resumed post-Covid.

Fabric

Amongst other duties, the PCC is responsible for the maintenance of our buildings, which include the historic church of St Katharine (Merstham Parish Church) and St Katharine’s Church Room. The last Quinquennial Inspection was carried out in March 2018 by Thomas Ford & Partners. The architect’s conclusion was that the church was well looked after by the PCC and significant repairs had been undertaken in the last ten years; although a number of repair issues remain these do not reflect poor care or management on the part of the Parish. Because of the ongoing work (see below) it has been agreed that the next Quinquennial, which was due during 2023, could be postponed until the following year.

Fundraising events

Quality Street Fair brought in a respectable £3,500. In addition, a display of artwork by a member of the congregation and subsequent sale generated a further £700.

The Deanery Synod

The Deanery Synod is the link between the parishes and the Diocese. Merstham Parish is part of Reigate Deanery Synod and is represented there by Jill Gunn and Judith Hanson. The Synod not only provides a link with the governance structures of the Church of England in the Diocese and nationally but also provides a link for the PCC to raise matters at a Deanery level and potentially higher.

Financial Review

Net income in the year was negative at c-£12k. This negative outcome was largely as a result of continued expenditure associated with the building of an extension to the existing church. Unfortunately, the builders entered administration in early 2023, shortly after starting work. Whilst there has been no financial loss from the administration, the PCC has incurred costs to restore the building to a safe and watertight standard, in addition to additional professional fees. Building work has been on hold since whilst the PCC determine what should now be done and find a suitable builder to undertake the work. Incoming resources include grant payments received from the Listed Places of Worship Grant Fund which offsets the VAT incurred on the extension project. Gift aided donations were slightly lower than 2022 and one-off legacies were substantially so. The investments regained a large amount of the value they had lost in 2022, which resulted in Total Net Assets in the Balance Sheet increasing by c£37k vs 2022. During the year we were able to pay our Parish Pledge in full.

Reserves policy

It is the policy of the PCC to seek to maintain adequate, but not excessive, reserves, to be used for the specific purposes for which they are identified. Cash representing reserves not immediately required is invested with the CBF Church of England Deposit Fund.

Annual Report for year ended 31 December 2023 (4)

Parish of Merstham

Plans for the future

Work to demolish the Victorian vestries on the north side of the church started at the end of February, and the planned extension (incorporating a new vestry, meeting area and toilets) was expected to be complete by the end of the summer. It is greatly to be regretted that the construction company went into administration the day prior to Maundy Thursday, and as a result of this we were left with a partly-demolished annexe. Emergency measures were put in place to render it weather-tight and to remove the debris left by the builders. We embarked on a second round of tendering, but the results of this served only to demonstrate that prices have increased considerably over the original estimate. As a consequence, we have reluctantly decided to abandon the original plan, and now intend to restore the vestry to its original condition while at the same time improving the insulation. We also intend to install a toilet as that was the primary reason for embarking on this project.

Other information

There have been no transactions between the PCC and related parties (as defined by the Charities Act 2011 and the Charities SORP) nor has the PCC identified any major risks (other than the availability of continued funding, a topic of continued consideration by the PCC) which impact the work of the Church in the parish.

In September we were blessed to welcome Nigel and his family to the Merstham and Gatton team ministry and are thankful for his much-needed leadership to both the team and to St Katharine’s.

Governing Documents

The Governing Documents relating to the operation of the PCC are:

Membership of the PCC

The Parochial Church Council (PCC) is a corporate body established by the Church of England. Members of the PCC, who are also Trustees for the purposes of charity law, are either elected by the Annual Parochial Church Meeting in strict accordance with the Church Representation Rules or serve as ex officio members. The PCC can also exercise its right to co-opt members as it deems fit.

During the year the Council received regular reports on the following topics, amongst other matters:

Finance Team Council Fabric and Churchyard Mission and Outreach projects Deanery Synod Safe Church Policy

The PCC usually meets each alternate month.

PCC membership following the 2023 APCM

Ex Officio Members : Revd Nigel Griffiths Team Rector (from September 2023) Mrs Christiana Agwuegbo Reader Mr Simon Beirne Churchwarden (from April 2016) Mr Chris Green Churchwarden (from May 2022) Mrs Jill Gunn Deanery Synod Representative Mrs Judith Hanson Deanery Synod Representative

Elected members:

Mr Daniel Hopcroft (from 2021) Mrs Libby Green (from 2023) Mr John Turner (from 2023) Mr Robert Prentice (from 2021) Mrs Glynis Beazley (from 2022) Mrs Gill Buchanan (from 2023)

Until the arrival of Revd Griffiths, PCC meetings have been chaired by Simon Beirne, the deputy chairman.

Parish of Merstham Annual Report for year ended 31 December 2023

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PCC Secretary

Mrs Ann Beirne

28 Harestone Hill, Caterham, Surrey, CR3 6DG

Independent Examiner

Alison Sargent FCA Sargent & Co.

219 Croydon Road, Caterham, Surrey, CR3 6PH

Bankers

The Central Board of Finance of the Church of England: Cheapside, London, EC2Y 5AQ

Charities Aid Foundation

NatWest Bank Ltd.: Station Road, Redhill, RH1 1QN

Correspondence

All correspondence should be sent to the PCC Secretary: 28 Harestone Hill, Caterham, Surrey, CR3 6DG

Registered Charity Number

The Parochial Church Council of the Ecclesiastical Parish of Merstham (Merstham PCC) is a charity registered with the Charity Commission under registration number 1139490.

Safeguarding Officers

Mrs Margaret Kippen, Mr Simon Beirne

Standing Committee

The Standing Committee is the only committee required by law. It exists to transact the business of the PCC between meetings and may construct the agenda for meetings of the PCC.

Team Council

This was set up at the creation of the Team Ministry. It consists of the clergy, churchwardens and secretaries from across the churches. It has not met during 2023. Its purpose is to share news and sustain an overview of Team life, help determine what activities may be achieved better across the team (e.g. various training), and support one other particularly in the mission and outreach of the Team churches.

Other Sub-committees

An ‘Extension sub-group’ was formed to oversee the progress of the Extension Project, with a mandate to report and to bring points of decision to the PCC.

Parish of Merstham Am?u0lRe￿rtlory¢Urended3I Detember2023 (6) ststement of Parochial Church Council Responsibilities Charlty Law requires the Parwhial Church Council to prq)are finan¢ial stat¢ments each financi81 year, which giv¢ a tru¢ and fwr view of the state of affairs of the Churth and of its financial activttieg for that penod. En preparing those fmancial statemfflts th¢ Pwochial Churth Council is r4uwed to.. se1￿1 suitable accountitig poli(?es them¢￿￿￿enty' observe the methods WMI PTin¢iples in the appIl￿ble ChaTities SORP. make judgem¢nts and cin]ates that are reasonable and pnmknt state whether applicable accx)unting stgndards hav¢ been ftillowe4 subject to any matcrial deparths that must b¢ th'sclosed and explained in the fillanC￿l statanents. prepare the financxa] stat￿ents on a 80iD8 basis Wil￿ it is inapprowiate to presume that the¢hur¢h will continue in tmjsiness. Th¢ P8ro¢hial ChuT¢h Council is responsible for ke4)in8 pro￿ ￿L¥)￿nting re£ords that disclose with re&8onable accuracy at any time the financial wjsition of thc Church and enables PCC m¢mbers to ensure that th¢ financial statements comply with re8ulthons made unts the Chur¢h Aw)unting Regulations 2006. It is also respousible for safeguaTth'ng th¢ asscts of the Church 8Th1 hrnr¢ for t&kw8 reawnable $ for the PT¢vc4ttioa and d&e¢tion of fraud and other i￿egularltses. Approved by the Paro¢hial Chur¢h Council and signed on its b¢hdf by Dan Hop¢roft (Tr￿￿Ter} S Gr¢cD (Churchw8rd¢n) )b.J.L)￿ y..

Annual Report for year ended 31 December 2023 (7)

Parish of Merstham

Independent Examiner’s Report to the Members of the PCC of the Parish of Merstham

I report to the members of the Parochial Church Council (PCC), being the charity’s trustees, on my examination of the accounts of the charity for the year ended 31[st] December 2023 which are set out on pages 8 to 19.

Responsibilities and Basis of Report

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

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

Independent Examiner’s Statement

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

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

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

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

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

Alison Sargent FCA

Sargent and Co Chartered Accountants 219 Croydon Road Caterham Surrey CR3 6PH

Date:

Annual Report for year ended 31 December 2023

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Parish of Merstham

Statement of Activities for the Year Ended 31[st] December 2023

Unrestricted Restricted Endowment Total Total
Notes funds funds funds funds 2023 funds 2022
Incoming resources
Voluntary income 2(a) 46,704 1,739 - 48,443 131,958
Activities for generating funds 2(b) 4,249 - - 4,249 3,765
Income from investments 2(c) 11,553 3,909 - 15,462 15,376
Church activities 2(d) 4,818 - - 4,818 6,369
Total incoming resources 67,324 5,648 - 72,973 157,468
Resources expended
Church activities 3(a) 78,160 3,977 - 82,136 117,844
Fundraising costs 3(b) 1,218 - - 1,218 305
Governance costs 3(c) 1,450 - - 1,450 1,620
Total resources expended 80,827 - 3,977 - - - 84,804 119,768
Net income before transfers (13,503) 1,671 - (11,832) 37,700
Gross transfers between funds - - - - -
Net income (expense) and net movement in funds
before gains and losses on investments (13,503) 1,671 - (11,832) 37,700
Net Gain on disposal of fixed assets - - - - -
Net investment gains (losses) 4 21,419 - 27,612 49,031 (68,586)
Net movement in funds 7,916 1,671 27,612 37,200 (30,886)
Reconciliation of funds
Total funds brought forward 914,196 57,915 290,984 1,263,095 1,293,981
Total funds carried forward 922,112 59,586 318,596 1,300,295 1,263,095

The notes on pages 10 to 19 form part of these accounts

Parish of Merstham Al￿￿OIRe￿)rtIDryeorended3I December2023 {9) Balanee Sheet as at 31" December 21)23 21 Tanwble assets 24.750 24.7SO Investments 143,Im Expendableendcrtment 71bl 175,580 160357 71cl 247,052 225￿39 Totsl fix•d •sM 54L352 L531 6.222 Cash at b•nk •nd In hand 71L230 719.423 711761 725.645 b#rt Credltor5 due kn I y¢•r 12,8501 (3x121 Nel currentas5ets 709.911 nL743 1 163 095 unrestrlC￿d 921112 914,196 re5trided io $9W6 57,915 •￿dcr￿ent li 318,596 T4>tal IWM were approved by the pcc 2024 aDd •8fjtyJ bejmlf of the PCC by Chris - Churthvarden

Parish of Merstham Annual Report for year ended 31 December 2023

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Notes to the Accounts for the Year Ended 31[st] December 2023

1. Accounting Policies

(a) Basis of Preparation

The accounts have been prepared under the current Church Accounting Regulations and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) - (Charities SORP (FRS102)) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011.

The accounts have been prepared on a going concern basis on the grounds that no material uncertainties exist and under the historical cost convention modified to include certain items at fair value as stated in the relevant notes to the accounts. The accounts are presented in Sterling and rounded to the nearest £.

The Church constitutes a public benefit entity as defined by FRS102.

(b) Income Recognition

All income is recognised once the Church has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The income of the Church includes income from Church activities, donations, grants, known legacies and letting income for Church premises.

All incoming resources have been recognised on a receivable basis except for voluntary donations and income from investments which is accounted for when received.

Legacy gifts are recorded on a case-by-case basis following the granting of probate when the administrator/executor of the estate has communicated in writing both the amount and settlement date.

(c) Expenditure Recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probably that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis.

Expenditure is directly attributable to various Church activities and has been included in the relevant cost categories.

Fundraising costs comprise the costs associated with any fundraising event.

(d) Tangible Fixed Assets

The Church silver has been included at market value based on an independent valuation report in a previous year.

Under the PCC’s (Powers) Measure 1956, all PCCs are trustees of income and expenditure but not necessarily of assets, so that any expenditure whether maintenance or improvement, incurred on consecrated or benefice buildings or moveable church fittings, is written off as expenditure during the year.

Annual Report for year ended 31 December 2023

Parish of Merstham

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(e) Investment Fixed Assets

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

(f) Debtors and Creditors Receivable/Payable Within One Year

Debtors and creditors receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(g) Cash at Bank and In Hand

Cash at bank and in hand includes cash and short-term highly liquid assets with a short-term maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(h) Realised Gains and Losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

(i) Funds

Permanent endowment funds are funds which have been given to the Parish of Merstham in trust with the restriction that the funds are invested to generate income for specific Church activities.

Expendable endowments are those funds which are mainly to be used as permanent endowments but the capital can also be used for the purposes of the Church in certain circumstances.

Restricted funds relate to income which is made available to the Parish of Merstham for specific purposes and which must be used solely for those purposes. The aim and use of the restricted fund is set out in the notes to the financial statements.

Unrestricted funds relate to the income which is available to meet the general objectives of the Parish of Merstham. General funds are unrestricted funds which are available for use at the discretion of the Members of the PCC in the furtherance of the general objectives of the Church and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the members of the PCC for particular purposes. The aim and use of the designated funds are set out in the notes to the financial statements.

Annual Report for year ended 31 December 2023 (12)

Parish of Merstham

2. Incoming Resources

Notes
2a
Voluntary income
Gift Aid donations
Income tax recovered
Non-Gift Aid donations
Grants
Donations & legacies
Outward Giving collections
Sundry income
2b
Activities for generating funds
Quality Street Fair
Other (parish) fundraising
2c
Income from investments
UK dividends and investment
2d
Income from church activities
Church Room/Hall lets
Parish magazine
Fees for services
Total Incoming Resources
Unrestricted
funds
18,865
5,389
2,699
17,434
2,000
223
94
46,704
3,549
700
Restricted
funds
1,010
252
320
-
-
-
157
1,739
-
-
Endowment
funds
-
-
-
-
-
-
-
-
-
-
Total
funds
2023
19,875
5,641
3,019
17,434
2,000
223
252
48,443
3,549
700
4,249
15,462
2,555
-
2,263
4,818
72,973
Total
funds
2022
22,633
5,802
1,587
1,400
100,000
-
538
131,958
3,663
102
4,249 - - 3,765
11,553
2,555
-
2,263
4,818
67,324
3,909
-
-
-
-
5,648
-
-
-
-
-
-
15,376
3,739
35
2,595
6,369
157,468

Annual Report for year ended 31 December 2023 (13)

Parish of Merstham

3. Resources Expended

Notes
3(a)
Church activities
Diocesan Parish Share
Other ministry costs
Outward Giving payments
Church running & maintenance
Church Room & Hall costs
Music & Organists
Organ maintenance
Parish magazine costs
Churchyard upkeep
Cost of services
Sundry expenses
New build (extension)
3(b)
Costs of generating funds
Fundraising events
Credit Card Fees
3(c)
Governance costs
Accountancy fees -
Independent Examination
Total resources expended
Unrestricted
funds
16,500
475
223
9,072
1,555
1,545
-
-
-
435
-
48,355
78,160
1,055
163
1,218
1,450
1,450
80,827
Restricted
funds
-
-
-
2,326
-
-
787
-
864
-
-
-
3,977
-
-
-
-
-
3,977
Endowment
funds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total funds
2023
16,500
475
223
11,397
1,555
1,545
787
-
864
435
-
48,355
82,136
1,055
163
1,218
1,450
1,450
84,804
Total funds
2022
24,000
198
100
12,433
1,601
1,905
624
56
977
450
1,305
74,195
117,844
305
-
305
1,620
1,620
119,768

Annual Report for year ended 31 December 2023

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Parish of Merstham

4. Gains/Losses on Investment Assets

Realised gain (loss) on sale of
investments
Profit (loss) on revaluation of
Permanent Endowment
Profit (loss) on revaluation of
investments
Total gains (losses) on investment
assets
Unrestricted
funds
-
-
21,419
21,419
Restricted
funds
-
-
-
-
Endowment
funds
-
12,395
15,217
27,612
Total funds
2023
-
12,395
36,636
49,031
Total funds
2022
-
(17,338)
(51,248)
(68,586)

5. Staff Costs

. Staff Costs
(a) Wages and Salaries
Wages paid to 1 individual (cleaner)
2023
2022
534
360

No payments to staff were large enough to warrant Social Security costs. The salary, pension and housing costs of Stipendiary Clergy are paid by the Diocese from the Diocesan Parish share, which is included in total resources expended on Church activities (see note 3 (a)).

(b) Payments to PCC Members

During the year no payments were made to PCC Members other than the reimbursement of agreed expenditure, all of which is included in the accounts.

The PCC members neither received nor waived any remuneration for their services during the year as trustees (2022nil)

Annual Report for year ended 31 December 2023

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Parish of Merstham

6. Tangible Fixed Assets

Cost
As at 1 January 2023
Disposal
At 31 December 2023
Diminution in value
At 1 January 2023
Disposal
Diminution in value during the year
At 31 December 2023
Net Book Value
At 31 December 2023
At 31 December 2022
Silverware
24,750
-
24,750
-
-
-
-
24,750
24,750
Total
24,750
-
24,750
-
-
-
-
24,750
24,750

The Parish owns several items of historic silver which were valued in November 2007 at £24,750. The members of the PCC are not aware of any material changes to this valuation.

Parish of Merstham Annual Report for year ended 31 December 2023 (16)

7. Fixed Asset Investments

(a) Mrs Puckle's bequest
2023
CBF Investment Fund shares
Market value at start of year
130,606
Unrealised investment gain / (loss)
12,395
Market value at end of year
143,001
The historic cost of the listed investment was
46,375
Dividends from this fund are paid into the Fabric Fund (a Restricted fund)
(b) Expendable endowment investment
CBF Investment Fund income shares
Market value at start of year
160,357
Additions
-
Disposals
-
Unrealised investment gain / (loss)
15,223
Market value at end of year
175,580
The historic cost of this investment was
67,897
Dividends from this fund are paid into the General Fund (an Unrestricted fund)
(c) Other investments
Listed investments - UK
Market value at start of year
21
Unrealised investment gain / (loss)
(6)
Market value at end of year
15
This investment refers to Royal Bank of Scotland shares received as a donation
CBF Investment Fund income shares
Market value at start of year
225,618
Additions
-
Disposals
-
Unrealised investment gain (loss)
21,419
Market value at end of year
247,037
The historic cost of this investment was
250,000
2022
147,944
(17,338)
130,606
46,375
181,649
-
-
(21,292)
160,357
67,897
18
3
21
255,576
-
-
(29,958)
225,618
250,000

Annual Report for year ended 31 December 2023 (17)

Parish of Merstham

8. Debtors

Due within one year
Tax recoverable (unrestricted)
Tax recoverable (restricted)
Other debtors
Total Debtors
. Creditors
Amounts falling due within one year
Accruals for utilities and other costs (unrestricted)
Other creditors (unrestricted)
Sargent &
Co
Other creditors (restricted)
Total Creditors







2023
727
20
784
1,531
2023
1,213
1,638
-
2,850







2022
5,548
253
421
6,222
2022
466
1,550
1,886
3,902

9. Creditors

10. Restricted Funds

The Organ Fund is a restricted fund to be used solely for the renovation and maintenance of the organ in St Katharine’s Church.

The Mission Fund is a restricted fund for promoting the mission of the Church within the Parish of Merstham.

Fabric Fund
Silverware
Organ Fund
Mission Fund
Balance at
1 January 2023
Incoming
resources
Expenditure
Transfers
Balance at
31 December 2023
9,539
5,648
3,190
-
11,998
24,750
-
-
-
24,750
18,448
-
787
-
17,661
5,178
-
-
-
5,178
57,915
5,648
3,977
-
59,586

Annual Report for year ended 31 December 2023

(18)

Parish of Merstham

11. Endowment Fund

Mrs Puckle's bequest
Expendable Endowment
Other
Balance at
1 January
2023
130,606
160,357
21
290,984
Incoming
resources
-
-
-
-
Expenditure
-
-
-
-
Transfers or
gains /(losses)
12,395
15,223
(6)
27,612
Balance at
31 December
2023
143,001
175,580
15
318,596

The Endowment Funds of the Parish of Merstham consist of both permanent endowment funds and expendable endowment funds and consist of the following:

Mrs. Puckle’s Bequest is a permanent endowment. This gifted trust fund is managed by the Diocesan Trust. Although the PCC has no authority to realise this investment the income from it is available to the Fabric Fund.

The expendable endowment was originally created from the sale of the verger’s cottage, which belonged to the PCC. The funds from the sale of the verger’s cottage, together with a donation, were used to purchase a freehold property in Mansfield Drive, Merstham. This property was subsequently sold in 2004. The PCC have the authority to use the expendable endowment and investment income for Church running expenses, fabric expenditure and expenditure related to the Mission.

The other fund is a block of Royal Bank of Scotland shares received as a donation. The shares are held by the Diocese but the income, which is unrestricted and undesignated, comes to the Parish.

12. Unrestricted Fund

General funds
Designated funds
Balance at
1 January
2023
153,391
760,805
914,196
Incoming
resources
49,890
17,434
67,324
Expenditure
32,472
48,355
80,827
Transfers or
gains /(losses)
21,419
-
21,419
Balance at
31 December
2023
192,228
729,884
922,112

The Designated Funds shown above are for the purpose of constructing and furnishing the planned extension to the north of the church, together with improvements to the heating and lighting within the church. It is anticipated that the total cost of the planned extension may well exceed the value of the designated funds and it will be necessary for some of the General Fund, or the Expendable Endowment, to be used to meet the full cost. As noted in Note 14, the original contracted builder entered Administration in 2023 and the work had to be put on hold. The PCC still intend to contract for an extension and hope that this work can be completed in 2024 or 2025.

Parish of Merstham

Annual Report for year ended 31 December 2023

(19)

13. Analysis of Net Assets Between Funds

Tangible fixed assets
Investment fixed assets
Net current assets
Unrestricted
funds
-
247,037
675,075
922,112
Restricted
funds
24,750
-
34,836
59,586
Endowment
funds
-
318,596
-
318,596
Total funds
2023
24,750
565,633
709,911
1,300,295

14. Post Balance Sheet Events

Unfortunately, the contracted builder for the church extension entered administration in early 2023. The PCC attempted to find an acceptable and affordable quotation for the continuation of the original planned extension, but this has proved impossible. Therefore, the PCC has agreed that a smaller and less ambitious vestry annexe should be constructed, most or all of which should use the footprint of the Victorian extension. Enquiries to secure a design and costings for this revised project have commenced and are ongoing. The PCC are confident that the building work can be concluded in 2024 or 2025.

15. Related Parties

There were no related party transactions between any PCC member or other person related to the charity and the charity other than donations being made without condition.