**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
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.
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.
_______________________________________________________________________________________
-13-
**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).
_______________________________________________________________________________________
-15-
**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.
_______________________________________________________________________________________
-16-
**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.
_______________________________________________________________________________________
-17-
**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-