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2020-12-31-accounts

Charity Registration No. 1139504

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. MARGARET, LOTHBURY

ANNUAL REPORT AND UNAUDITED ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

CONTENTS

Page
Annual Report of the Parochial Church Council 1-5
Independent Examiner’s Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Accounts 9-18

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The members of the Parochial Church Council (“the PCC”) (“the Charity”), who are also the Trustees of the Charity by virtue of their membership of the Council, are pleased to present their Annual Report together with the Financial Statements of the Charity for the year ending 31 December 2020.

The Accounts have been prepared in accordance with the accounting policies set out in note 1 to the Accounts and comply with the 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 Parochial Church Council of St. Margaret, Lothbury have the responsibility of co-operating with the Incumbent, the Reverend Prebendary Jeremy Crossley, in promoting in the Ecclesiastical Parish the whole mission of the Church - pastoral, evangelistic, social and ecumenical, and they fulfil this task with zest, wisdom, commitment and style.

Our vision remains to be heart of our community in the City as well as serving all the networks associated with the Church and the area pointing all to Jesus Christ and his love.

One aspect of this is that the PCC has responsibility for the maintenance of the historic Parish Church of St. Margaret, maintaining its fabric while seeking to ensure that its ministry remains relevant and accessible in a rapidly changing context.

During 2020, the Rector and PCC have continued to focus on serving those who work in the Square Mile & providing the opportunity to worship, become part of our growing and inevitably changing congregation, to hear about the Christian faith and its application to daily life, to be prayed for, or simply to use the building for quiet reflection or private prayer.

In normal times there is a popular weekly Organ recital, a men’s breakfast group which meets to pray and study the Bible, a weekly prayer meeting for the City and those who work there as well as daily prayers. This is in addition to the two main public services each week.

As the 2020 Coronavirus pandemic took hold and line with the Government’s instructions, the Church building was closed between 21[st] March 2020 & 6[th] July 2020 and although it has been open for private prayer since then, there were only a few in person services as the Square Mile was almost deserted for the remainder of 2020.

In response to all that happened, life at St Margaret’s went online with our services available on both our website & our YouTube Channel with other activities taking place on zoom. We owe an enormous debt to Cliff Radmore and Will Jackson whose dedication and hard work made all this possible and to James Gerry who held the men’s ministry together on zoom and saw an encouraging growth in it. In the Autumn we launched an initiative called the Lothbury Conversations in which figures from the worlds of politics and the media reflected on events both at home & abroad & answered questions under the consummate chairmanship of Mark Fox.

We continue to be enthusiastically supportive of the City Civic both through the Livery Movement and the Ward Clubs of which the Incumbent is Chaplain. In November 2019 the Rector became Chaplain to one of the Sheriffs of London.

The Electoral Roll for 2020 was prepared in October due to the unusual circumstances of the year; there was an 8.95% fall in numbers from 143 to 127 with 15 people coming off the roll-14 because they had left the City & one through death. No-one on the Roll was resident in the parish, but all had attended public worship at least once a month.

-1-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Charitable Status and Public Benefit

The PCC has ever been mindful of the Charity Commission’s guidance on public benefit and in particular the specific guidance on charities for the advancement of religion and is satisfied that the activities of St. Margaret’s fall within such guidance. Having received a grant from the Heritage Lottery Fund towards works on the Tower in 2018 we have increased the opening hours of the building, continued to be hospitable to guided tours and developed our church guide. As a Parish Church we have continued to engage in any possible way with local firms and Ward Clubs

Governance and Internal Control

Although this is the responsibility of the PCC, it has been delegated to the Standing & Finance Committee of the Council whose minutes are always circulated to the whole PCC. We have continued in our efforts to sharpen our procedures and worked to clarify further our financial reporting to the PCC. We have also continued to develop our Safeguarding reporting procedures and are working to strengthen our Safeguarding Team. In addition, we hope that we will be in a position to plan our response to the Quinquennial Report on the building in the New Year.

Achievements and performance

A faculty was granted in 2019 for Hope Church UK to use our buildings on Sundays and this has proved a good partnership for both churches. Despite the pandemic and not always being able to meet in person we have also maintained our regular round of weekly church life while continuing to develop our relationship with other churches around Bank Junction and the various City Institutions who normally use our buildings.

Future plans

We are wanting to develop our presence on social media and complete our plans for the first proper updating of our AV equipment for nearly a quarter of a century. We are also reviewing our worshipping life and seeking to strengthen the pastoral care of the congregation.

Financial review

The total funds of the PCC at the 31 December 2020 stand at £1,193,718, an increase over the previous year of just in excess of 5.5%. Net income stood at £62,311. Church Rate was down on the previous year, as anticipated in the previous report, as businesses in the Square Mile tightened their belts in response to increasing pressures due to COVID-19 and continuing uncertainty over Brexit. Congregational giving was also down by around 24%. The PCC continue to look for alternative sources of income to maintain a strong reserve position.

Movements in, and change to specific funds are detailed in note 12 on pages 16 to 18 of the accounts.

The PCC has convened regularly since the start of the COVID-19 pandemic and expects the income for 2021 to be similar to that for 2020, from congregational giving and ward clubs / liveries; Hope Church; and also from Church Rate. Given the financial prudence adopted by the PCC over the last few years, the PCC is confident that any shortfall will be able to be covered out of unrestricted funds.

The members of the PCC balance a low risk approach to investing against the requirement to generate a reasonable rate of return and take advice from qualified professionals as required and in accordance with the PCC investment policy. The current aims are to move funds away from short term bank balances and into investment funds generating better returns.

-2-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Reserves Policy

It is the policy of the PCC that those funds which have not been designated for a specific use should be maintained at a level equivalent to enable ongoing operation of the Church without the need to call on investment funds and the designated “reserve” fund has been created for this purpose. The members consider that maintaining the reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the PCC’s current activities for at least twelve months while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year

Structure, Governing Documents and Management

The Parochial Church Council (“PCC”) is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure. The method of appointment of PCC members is set out in the Church Representation Rules.

The Standing Committee is the only committee required by law and consists of the Rector, two Churchwardens, the Treasurer, the PCC Secretary and two other members with particular responsibilities.

New PCC members are given a high-level introduction to the running of the Church, its aims and future plans.

The major risks to which the PCC is exposed, as identified by the PCC members, have been reviewed and systems and procedures are established to manage such risks.

-3-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Legal and administrative information

PCC members who have served from 1 January 2020 until the date of this report are:

Incumbent The Reverend Prebendary Jeremy Crossley
Associate Vicar The Reverend Mark Fox
Curates The Reverend Sophie Bannister (resigned 30 September 2020)
The Reverend Greg Bannister (resigned 30 September 2020)
Elected Churchwardens Miss Adekemi Adebajo (resigned 3 November 2020)
Mr Mike Buckley (appointed 3 November 2020)
Mrs Bebe Coleman
Representatives on the
Deanery Synod Ms Cheryl Stafford
Miss Jacqueline Foot
Other elected members Mrs Monica Buckle
Mr Olly Gillet
Mr Dennis Grante
Miss Beverley Ryan
Mr William Taylor
Mr Mark Thomas
Mr Peter Thornton
Chairman The Reverend Prebendary Jeremy Crossley
Vice Chairman Miss Adekemi Adebajo (resigned 3 November 2020)
Mrs Bebe Coleman (appointed 3 November 2020)
Treasurer Mr Mark Thomas
Secretary Mrs Monica Buckle
Electoral Roll Officer Mrs Bebe Coleman
Safeguarding Officer Miss Beverley Ryan

-4-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Other legal and administrative information:

Charity Number 1139504
Principal Address St. Margaret’s Church
Lothbury
London EC2R 7HH
Bankers Brown Shipley
Founders Court
Lothbury
London EC2R 7HE
HSBC Bank Plc
PO Box 757
Hemel Hempstead
Hertfordshire HP2 4SS
Main Safeguarding Officer Mr Cliff Radmore
Building Manager Mr Cliff Radmore
Independent Examiner Chris Lockhart FCA
Chris Lockhart Limited
Chartered Accountant
Suite 2015 Letraset Building
Wotton Road
Ashford
Kent TN23 6LN
Investment Advisors CCLA Investment Management Ltd
St. Alphage House
2 Fore Street
London EC2Y 5AQ
The CBF Church of England
St. Alphage House
2 Fore Street
London EC2Y 5AQ

Signed on behalf of the Parochial Church Council of St. Margaret, Lothbury

The Reverend Prebendary Jeremy Crossley

Dated: 26 April 2021

-5-

INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

I report to the members on my examination of the accounts of the Parochial Church Council of St. Margaret, Lothbury (“the PCC”) (“the Charity”) for the year ended 31 December 2020, which are set out on pages 7 to 18.

Responsibilities and basis of report

As the Charity Trustees 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 PCC’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the PCC as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. 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.

Chris Lockhart FCA Chris Lockhart Limited

Chartered Accountant Suite 2015 Letraset Building Wotton Road Ashford Kent TN23 6LN

Dated: 26 April 2021

-6-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted Endowment Designated
funds
funds
funds
funds
Notes
£
£
£
£
Income and endowments
from:
Donations and legacies
2a
178,646
-
-
-
Charitable activities
2b
11,552
-
-
-
Investment income
2c
35
7,684
-
6,631
Other
2d
30,096
16,331
-
-
_
_
_
_
Total income
220,329
24,015
-
6,631
_
_
_
_
Expenditure on:
Raising funds
2,622
-
-
-
Charitable activities
3
191,596
2,119
8,582
23,537
_
_
_
_
Total expenditure
194,218
2,119
8,582
23,537
_
_
_
_
Net gains/(losses) on
investments
7
-
11,606
(2,171)
30,357
_
_
_
_
Net income/(expenditure)
26,111
33,502
(10,753)
13,451
Transfers between funds
6,546
-
-
(6,546)
_
_
_
_
Net movement in funds
32,657
33,502
(10,753)
6,905
Reconciliation of funds:
Fund balances
brought forward
12
270,926
246,580
10,753
603,148
_
_
_
_
Fund balances
carried forward
12
303,583
280,082
-
610,053


 Total
2020
£
178,646
11,552
14,350
46,427
_
250,975
_
2,622
225,834
_
228,456
_
39,792
_
62,311
-
_
62,311
1,131,407
__
1,193,718
 Total
2019
£
225,809
19,070
15,678
162,827
__
423,384
_
2,590
450,192

452,782

89,356

59,958
-
_
59,958
1,071,449
_____
1,131,407

-7-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY BALANCE SHEET AS AT 31 DECEMBER 2020

Notes
2020
£
Fixed assets
Tangible assets
6
Investments
7
_
Current assets
Debtors
8
35,583
Investments: cash deposits
96,946
Cash at bank and in hand
285,516
__
418,045
Creditors: amounts falling due within
one year
9
(5,744)
____
Net current assets

Net assets



Income funds
Unrestricted funds
Restricted funds
12
Endowment funds
12
Designated funds
12


 2020
2019
£
£
4,206
777,211
__
781,417
25,427
92,487
311,803
_
429,717
(47,895)
__
412,301
__

1,193,718


303,583
280,082
-
610,053
______
1,193,718

 2019
£
3,584
746,001
_
749,585
381,822
_
1,131,407

270,926
246,580
10,753
603,148
__
1,131,407

Approved by the Parochial Church Council on 26 April 2021 and signed on its behalf by:

The Reverend Prebendary Jeremy Crossley Mr Mark Thomas Chairman Treasurer

-8-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006, 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) (section 1A) and applicable accounting standards.

The accounts have been prepared under the historical cost convention except for the valuation of investment assets which are shown at fair value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law.

Whilst having a significant impact on the way on which the Church was able to operate in the year, the pandemic has fortunately not had a significant impact on the financial position of the PCC and donations continue to be forthcoming. No material uncertainties that may cast significant doubt about the ability of the charity to continue as a going concern have been identified by the members.

1.2 Funds

General funds included in unrestricted funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application in the general purposes of the PCC. Funds designated for a particular purpose by the PCC are also unrestricted.

Restricted funds are subject to specific conditions by donors as to how they may be used. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of the year must be carried forward as a balance on that fund. The PCC will invest separately for each fund wherever practical or required but not exclusively. The purposes and uses of restricted funds are set out in the notes to the accounts.

Endowment funds are funds for which the capital must be maintained. Only income arising from the investment of the endowment may be used for specific charitable purposes and this is dealt with through a further restricted fund.

1.3 Income and endowments

Donations and legacies

Collections are recognised when received on or on behalf of the PCC. Planned giving receivable under covenant is recognised only when received. Income tax recoverable on covenants or Gift Aid donations is recognised when the income is recognised. Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement and the amount due except for Heritage Lottery Fund grants which are accounted for when the entitlement to the grant becomes certain. Sales of books and magazines from the Church bookstall are accounted for gross.

Income from investments

Dividends and interest are accounted for when receivable. Tax recoverable on such income is recognised in the same accounting year.

Gains and losses on investments

Realised and unrealised gains and losses on investments and investment properties are included in the statement of financial activities as “Net gains/(losses) on investments”.

1.4 Expenditure

All costs are recognised when the liability is incurred and can be quantified with reasonable accuracy. Expenditure includes any VAT which cannot be recovered and is reported as part of the expenditure to which it relates. Items of expenditure are allocated directly to grants or activities directly relating to the work of the Church. Support costs are directly allocated to activities.

-9-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Grants

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

Activities directly relating to the work of the Church

The diocesan quota or parish share is accounted for when payable. Any quota unpaid at the year end is provided for in these accounts as an accrual (though not a legal liability) and is shown as a creditor in the balance sheet.

1.5 Fixed assets

Consecrated land and buildings and moveable church furnishings

Consecrated and beneficed property is excluded from the accounts in accordance with section 10(2)(a) of the Charities Act 2011.

No value is put on the movable Church furnishings held by the churchwardens in special trust for the PCC and which require a faculty for disposal since the PCC considers this to be an inalienable property. All expenditure incurred during the year on consecrated or benefice buildings and movable Church furnishings, whether maintenance or improvement, is written off as expenditure in the SOFA and separately disclosed.

Other fixtures, fittings and office equipment

Depreciation is provided on all tangible fixed assets over a purchase price of £500, so as to write off the cost of the assets over their estimated useful lives, as follows:

Soft furnishings Straight line basis over 10 years Fixtures, fittings and office equipment Straight line basis over 5 years

Investments

Investments are stated at fair value at the balance sheet date. Cash balances are included as fixed asset investments if they are invested in accounts of an investment nature and are intended to be held for a period of more than 12 months from the balance sheet date.

1.6 Current assets

Amounts owing to the PCC at the year end in respect of fees, rents or other income are shown as debtors.

Current asset investments include cash held on deposit either with the CBF Church of England Funds or at the bank and are intended to be held for a period between 3 and 12 months from the balance sheet date.

1.7 Donated assets and services

In accordance with the Charities SORP (FRS 102), the value of volunteer help is not included in the Financial Statements.

Donated assets are recognised as income when the PCC has control over the item, any conditions attached to the donation have been met, the receipt of economic benefit from the use by the PCC of the item is probable and that economic benefit can be measured reliably.

On receipt, donated assets are recognised as income on the basis of the value of the gift to the PCC which is the amount the PCC would have been willing to pay to obtain an asset of equivalent economic benefit on the open market; a corresponding amount is then recognised as an asset in the period of receipt.

1.8 Financial Instruments

The charity only enters into basic financial instruments that result in the recognition of financial assets and liabilities such as other debtors and creditors, which are measured at settlement value. Impairment losses are recognised in the Statement of Financial activities.

-10-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Income and endowments

Unrestricted
Restricted Endowment Designated
funds
funds
funds
funds
£
£
£
£
a. Donations and legacies
Incoming resources from
donors
Donations made under the
Gift Aid scheme
60,910
-
-
-
Income tax recoverable
15,228
-
-
-
Other donations
35,929
-
-
-
Voluntary Church rate
66,579
-
-
-
_
_
_
_
178,646
-
-
-



b. Charitable activities
Income from operating
activities to further
the council’s objectives
Service fees
5,219
-
-
-
Use of church building
6,333
-
-
-
_
_
_
_
11,552
-
-
-



c. Investment income

Dividends and interest
35
7,684
-
6,631



d. Other income
Grants
8,934
16,331
-
-
Salary contribution
21,162
-
-
-
_
_
_
_
30,096
16,331
-
-


 Unrestricted
Restricted Endowment Designated
funds
funds
funds
funds
£
£
£
£
a. Donations and legacies
Incoming resources from
donors
Donations made under the
Gift Aid scheme
60,910
-
-
-
Income tax recoverable
15,228
-
-
-
Other donations
35,929
-
-
-
Voluntary Church rate
66,579
-
-
-
_
_
_
_
178,646
-
-
-



b. Charitable activities
Income from operating
activities to further
the council’s objectives
Service fees
5,219
-
-
-
Use of church building
6,333
-
-
-
_
_
_
_
11,552
-
-
-



c. Investment income

Dividends and interest
35
7,684
-
6,631



d. Other income
Grants
8,934
16,331
-
-
Salary contribution
21,162
-
-
-
_
_
_
_
30,096
16,331
-
-


 Unrestricted
Restricted Endowment Designated
funds
funds
funds
funds
£
£
£
£
a. Donations and legacies
Incoming resources from
donors
Donations made under the
Gift Aid scheme
60,910
-
-
-
Income tax recoverable
15,228
-
-
-
Other donations
35,929
-
-
-
Voluntary Church rate
66,579
-
-
-
_
_
_
_
178,646
-
-
-



b. Charitable activities
Income from operating
activities to further
the council’s objectives
Service fees
5,219
-
-
-
Use of church building
6,333
-
-
-
_
_
_
_
11,552
-
-
-



c. Investment income

Dividends and interest
35
7,684
-
6,631



d. Other income
Grants
8,934
16,331
-
-
Salary contribution
21,162
-
-
-
_
_
_
_
30,096
16,331
-
-


 Unrestricted
Restricted Endowment Designated
funds
funds
funds
funds
£
£
£
£
a. Donations and legacies
Incoming resources from
donors
Donations made under the
Gift Aid scheme
60,910
-
-
-
Income tax recoverable
15,228
-
-
-
Other donations
35,929
-
-
-
Voluntary Church rate
66,579
-
-
-
_
_
_
_
178,646
-
-
-



b. Charitable activities
Income from operating
activities to further
the council’s objectives
Service fees
5,219
-
-
-
Use of church building
6,333
-
-
-
_
_
_
_
11,552
-
-
-



c. Investment income

Dividends and interest
35
7,684
-
6,631



d. Other income
Grants
8,934
16,331
-
-
Salary contribution
21,162
-
-
-
_
_
_
_
30,096
16,331
-
-


 Unrestricted
Restricted Endowment Designated
funds
funds
funds
funds
£
£
£
£
a. Donations and legacies
Incoming resources from
donors
Donations made under the
Gift Aid scheme
60,910
-
-
-
Income tax recoverable
15,228
-
-
-
Other donations
35,929
-
-
-
Voluntary Church rate
66,579
-
-
-
_
_
_
_
178,646
-
-
-



b. Charitable activities
Income from operating
activities to further
the council’s objectives
Service fees
5,219
-
-
-
Use of church building
6,333
-
-
-
_
_
_
_
11,552
-
-
-



c. Investment income

Dividends and interest
35
7,684
-
6,631



d. Other income
Grants
8,934
16,331
-
-
Salary contribution
21,162
-
-
-
_
_
_
_
30,096
16,331
-
-


 Total
2020
£
60,910
15,228
35,929
66,579
_
178,646

5,219
6,333
_
11,552

14,350
 Total
2019
£
78,517
19,629
48,139
79,524
_
225,809

2,320
16,750
______
19,070

15,678
_
143,820
19,007
______
162,827
8,934
21,162
_
30,096
 16,331
-
_
16,331
 -
-
_
-
 -
-
_
-
25,265
21,162
_
46,427

-11-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Expenditure on Charitable Activities

Unrestricted
Restricted Endowment Designated
funds
funds
funds
funds
£
£
£
£
a. Grants
Charitable giving
160
-
8,582
-
_
_
_
_
b. Activities directly relating
to the work of the Church
Ministry
Diocesan quota
85,200
-
-
-
Curate
-
-
-
23,537
Clergy expenses
115
-
-
-
Outreach
5,959
-
-
-
Other clergy & service
costs
299
-
-
-
CPD
50
-
-
-
Building manager
35,646
-
-
-
Church running expenses
14,024
-
-
Church maintenance
(inc. organ)
4,978
2,119
-
-
Organist’s retainer
-
-
-
-
Housekeeper
4,610
-
-
-
Celebrate
12,149
-
-
-
St. Mary Woolnoth
11,487
-
-
-
Support costs allocated to
activities:
Personnel costs
10,469
-
-
-
Office costs
974
-
-
-
Professional fees
3,248
-
-
Bank interest and charges
32
-
-
-
Depreciation
2,196
-
-
-
_
_
_
_
191,436
2,119
-
23,537
_
_
_
_
Total
191,596
2,119
8,582
23,537


 Total
2020
£
8,742
_

85,200
23,537
115
5,959
299
50
35,646
14,024
7,097
-
4,610
12,149
11,487
10,469
974
3,248
32
2,196
_

217,092
_

225,834
 Total
2019
£
1,132
_
82,800
31,845
1,245
3,545
2,080
60
38,026
15,497
172,883
1,000
5,671
24,445
23,276
16,212
1,041
27,597
32
1,805
_
449,060
_
450,192

Professional fees include the following amounts due to the Independent Examiner:

Independent Examination fees
Current year		 2020
£
1,400
 2019
£
1,400

-12-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Personnel

Number of employees

The average monthly head count was 2 (2019: 2). The average monthly number of full-time equivalent employees during the year was 1 (2019: 1).

Employment costs

Employment costs
2020 2019
£ £
Wages and salaries 52,646 56,796
Social security costs 1,221 2,474
Other pension costs 2,632 2,783
_ _
56,499 62,053

There were no employees whose annual remuneration was £60,000 or more.

Regular outsourced services:

Regular outsourced services:
2020 2019
£ £
Bookkeeper 6,615 10,955
Housekeeper 4,610 5,671
_ _
11,225 16,626

During the year the PCC outsourced bookkeeping and housekeeping services, neither of whom earned more than £60,000. The organist did not receive his retainer of £1,000 this year (2019: £1,000).

One curate is on the payroll of another church in the parish. The curate’s salary cost is partially recharged to the PCC and came to £23,537 (2019: £31,845).

The members of the PCC and the building manager comprise the key management personnel of the charity and received aggregate remuneration totalling £40,292 (2019: £43,948). The members of the PCC received no remuneration (see note 5).

5 Transactions with Trustees

No member of the PCC (or any persons connected with them) received any remuneration during the year. Expenses totalling £115 were due to one member of the PCC for the year (2019: £1,245 to one member). No pension benefits are accruing to any member of the PCC.

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THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Tangible fixed assets

Soft
Fixtures,
furnishings
fittings &
equipment
£
£
Cost
Brought forward
12,070
25,347
Additions
-
2,818
__
_

Carried forward
12,070
28,165
_


Depreciation
Brought forward
10,559
23,274
Charge for the year
918
1,278
_


Carried forward
11,477
24,552

___

Net book value
At 31 December 2020
593
3,613

At 31 December 2019
1,511
2,073
 Total
£
37,417
2,818
_
40,235
_
33,833
2,196
_
36,029
_
4,206
3,584

Net book value at 31 December 2020 represents fixed assets used for direct charitable purposes.

7 Fixed asset investments

Unlisted Cash or Total
investments cash
equivalents
£ £ £
Fair value at 1 January 2020 546,001 200,000 746,001
Additions - - -
Disposals (8,582)
-		 (8,582)
Change in value in the year 39,792 - 39,792
_ _ _
Fair value at 31 December 2020 577,211 200,000 777,211

Investments are held to provide an investment return for the PCC.

-14-

THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Debtors

Income tax recoverable
Occasional services
Other debtors and prepayments


Creditors: amounts falling due within one year
Other creditors
Accruals and deferred income

 2020
£
15,228
3,914
16,441
_
35,583

2020
£
1,286
4,458
_
5,744
 2019
£
19,629
2,430
3,368
_
25,427
2019
£
39,351
8,544
_
47,895

9 Creditors: amounts falling due within one year

10 Pensions and other post-retirement benefit commitments

Defined contribution scheme

The PCC operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the PCC to the fund.

2020 2019
£ £
Contributions payable by the PCC for the year 2,632 2,783

11 Related party transactions

The funds of the John Simmons Charity, an endowment fund held by the PCC were transferred to the Charity of Mary Barnes (registered number 279055) (see note 12 on page 17). The Reverend Prebendary Jeremy Crossley is also a trustee of the Charity of Mary Barnes.

There were no other transactions with related parties during the year other than as disclosed in note 5 (2019: £nil) and there were no balances outstanding with related parties as at 31 December 2020 (2019: £nil).

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THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Funds

The PCC holds endowment and restricted funds as follows:

Building repair fund

This comprises a restricted fund held for the purpose of repairing and maintaining the building and covers maintenance and repair work on the essential systems within the church and other work in the church not covered by the Building fabric fund. The income of this fund is received from an endowment fund held for the PCC by the London Diocese who is the sole trustee.

Building fabric capital fund and Building fabric fund

The Building fabric capital fund comprises a fund held for the purpose of generating an investment return to be applied for the purpose of maintaining the fabric of the building. The income generated by the fund is paid into the Building fabric fund with the same purpose of maintaining the fabric of the building. The capital fund is protected and only to be used if there is no balance remaining on the Building fabric fund.

Organ investment capital fund and Organ repair fund

The Organ investment capital fund comprises a fund held for the purpose of generating an investment return to be applied for the purpose of maintaining the organ. The income generated by the fund is paid into the Organ repair fund to pay for maintenance and repair work on the organ. The capital fund is protected and only to be used if there is no balance remaining on the Organ repair fund.

John Simmons Charity

This is an old historic charity fund held within the PCC intended to benefit the poor in the parish. Income is added to this endowment fund as there are no current beneficiaries of this charity.

Heritage Lottery Fund Grant

This comprises a grant received to assist with the repair work needed on the Church Tower and is held in a restricted fund. Grant income falls due when the repair work has been carried out.

The F E Cleary Trust

This is a restricted fund whereby grants are paid for specific projects within the building or garden.

City Churches’ Grants Committee

This is a restricted fund whereby grants are paid for specific projects.

The PCC also holds:

Designated funds

These represent funds set aside by the members of the PCC to cover specific aims. The Reserve fund is to ensure sufficient reserves are held to enable the PCC to continue to operate for a period of twelve months. A separate fund was set aside for the cost of the curate in the current year and the Vicar’s discretionary fund and the Rectory repair fund are to cover additional costs as described.

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THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Funds (continued)

Movements on each fund during the year are as follows:

Restricted funds

Brought
Gain on		 Income Expenditure Transfers Carried
**forward ** investments forward
£
£		 £ £ £ £
Capital funds:
Fabric capital fund
 138,152
9,500		 4,197 - (4,197) 147,652
Organ investmentcapital fund 32,926
2,106		 1,009 - (1,009) 35,032
Arising from endowments and
restricted capital funds:
Fabric fund 21,960
-		 176 - 4,197 26,333
Organ repair fund 15,465
-		 - 734 1,009 15,740
Building repairs 37,701
-		 2,302 - 14,946 54,949
Church Spire Project: -
-		 6,331 1,385 (4,946) -
City Churches’Grants Committee
-
-		 10,000 - (10,000) -
Historic difference 376
-		 - - - 376
_
______		 ______ ______ _ _
246,580
11,606		 24,015 2,119 - 280,082

The overspend arising on the Church Spire Project in 2019 was covered by a transfer from unrestricted reserves in that year. This has now been partly offset by additional income received in the current year. The original transfer from unrestricted reserves not now required has been transferred to the Building Repair fund rather than returned to unrestricted reserves.

Endowment funds

Brought Loss on Dividends Expenditure Carried
forward investments and interest forward
£ £
£		 £ £
John Simmons Charity 10,753
(2,171)
-		 (8,582) -

The John Simmons Charity is a separate historic charity (Removed Charity registration number 207626). It had no potential beneficiaries due to the stated aims now being obsolete. On 25 February 2020 the PCC agreed unanimously to transfer the funds of the John Simmons Charity to the Charity of Mary Barnes (Registered Charity number 279055), a charity whose aims include the prevention or relief of poverty, akin to the original aims of the John Simmons Charity, with potential beneficiaries. The value of the fund had declined since the start of the year due to the fall in the Stock Market resulting from the pandemic. The funds were transferred in accordance with the provisions of s281 Charities Act 2011.

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THE PAROCHIAL CHURCH COUNCIL OF ST. MARGARET, LOTHBURY

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Funds (continued)

Endowment funds (continued)

A Building Repair endowment fund is held for the PCC by the Diocese of London, which acts as sole trustee and has sole managerial responsibility for the capital value of this fund. The value of this fund held at the year end is £82,195 (2019: £76,906).

Designated funds

Brought
Gain on		 Income Expenditure Transfers Carried
forward investments forward
£
£		 £ £ £ £
Reserve 600,662
30,357		 6,631 - (30,083) 607,567
Curate -
-		 - (23,537) 23,537 -
Vicar’s discretionary fund 436
-		 - - - 436
Rectory repairs 2,050
-
-		 - - 2,050
_
_		 ______ _ _ _
603,148
30,357		 6,631 (23,537) (6,546) 610,053

13 Analysis of net assets by fund

Unrestricted Restricted Endowment Designated Total Total
funds funds funds funds 2020 2019
£ £ £ £ £
Tangible fixed assets 4,206
-		 - - 4,206 3,584
Investments - 182,685
-		 594,526 777,211 746,001
Current assets 305,121 97,397 - 15,527 418,045 429,717
Current liabilities (5,744)
-		 - - (5,744) (47,895)
_ _ ______ _ _ __
303,583
 280,082
 -
 610,053
 1,193,718
 1,131,407

-18-