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2021-12-31-accounts

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Diocese of London

Charity Registration No. 1139673

Annual Report and Accounts 31 December 2021

Tandem Accounting Chartered Accountants 17 Heathville Road London N19 3AL

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH Report and Financial Statements 2021 Contents

Page
Legal and administrative information 2
Report of the Parochial Church Council 3
Independent Examiner's report to the Parochial Church Council 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9

1

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH Legal and Administrative Information

Charity Name The Parochial Church Council of the Ecclesiastical Parish of St Leonard Shoreditch. The The Parochial Church Council of the Ecclesiastical Parish of St Leonard Shoreditch. The
Parish of St Leonard’s is part of the Diocese of London within the Church of England.
Charity Registration 1139673. The Parish was registered with the Charity Commission on 5 January 2011
Principal Address Shoreditch High Street, Shoreditch, London E1 6JN.
Governing Document Parochial Church Council Powers Measure (1956) as amended and Church Representation
Rules.
Objectives The PCC has the responsibility of cooperating with the incumbent in promoting in the
ecclesiastical parish the whole mission of the church, pastoral, evangelistic, social and
ecumenical.
Members of the PCC Incumbent Rev’d Al Gordon
Other Clergy Rev’d Naomi Maxwell (from July 2021)
Wardens Christine Owusu-Ansah
Deborah Pritchard
Deanery Synod Representative Lucy Johnson
Elected members Aaron Oxley
Philip Whitehead (Reader)
Ferida Cummings
Helen Edwards (Treasurer, resigned 31 December
2021)
Lucy Johnson
Greta Mutlu
Elaine Nwokolo
Nat Pimlott
Clare Whitehead
Safeguarding officer Lucy Johnson
Bankers Metro Bank
One Southampton Row
London WC1B 5HA
Independent John Helm ACA
Examiner Tandem Accounting Limited
17 Heathville Road
London N19 3AL

2

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Report of the Parochial Church Council For the year ended 31 December 2021

The Parochial Church Council of the Parish of St Leonard’s Shoreditch (the “PCC”) submits its report and the financial statements of the PCC for the year ended 31 December 2021. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2019 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

1. Structure, Governance and Management

1.1 Trustees

The PCC is a corporate body established by the Church of England. The method of appointment of PCC members is set out in the Church Representation rules. All church attendees are encouraged to register on the Electoral Roll and to stand for election to the PCC.

The PCC meets approximately 6 times per annum to discuss a full range of matters relating to finance, fabric, general administration and responsibility for keeping of the Electoral Roll. Members of the PCC are either ex officio or elected by the APCM in accordance with the Church Representation Rules.

PCC members are given a copy of the Charity Commission’s guidance ‘The Essential Trustee’.

1.2 Church Attendance

The Electoral Roll that was updated in 2021 and stood at 69 (2020 was 39). Due to the pandemic, the Sunday services were only online through to March 2021. After re-opening, the average weekly attendance for 2021 was 81 (2020: 40). The church continues to stream live services for those that prefer to remain sheltered during the pandemic. Through our digital offerings, we have been blessed with new members that are both local and distant.

2. Activities and Strategies

The PCC are aware of the Charity Commission’s former published guidance on public benefit in “The advancement of religion for Public Benefit” and have had regard to it in their administration of the church.

The PCC believes that by promoting the Christian faith it provides a benefit to the public by:

3. Achievements and Performance

At year end 2021, the management of the church was overseen by the PCC and delegated to Rev’d Al Gordon. The church clergy team consisted of Rev’d Naomi Maxwell, a curate from July 2021, Ordinand Toby Thomas, and Ordinand Shawn Woods (from September 2021) whose roles are to look after the internal ministries and community outreaches of the church.

Our worship on a Sunday morning is liturgical and our 5pm Service is more contemporary. We aim to provide a style of worship which opens up a channel between the worshipper and God, and which is led in a dignified and non-intrusive style. We attempt to engage thoughtfully with scripture in our preaching. We are fortunate to have several talented musicians who enhance our worship.

We also launched a Wednesday mid-day service called Work-Life with the objective of reaching out to those working in the local area.

We have a quiet meeting for prayer on Wednesday evenings. The church is open for private prayer on Thursday afternoons.

3

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Report of the Parochial Church Council For the year ended 31 December 2021

The PCC worked with Veolia and Historic England on the restoration of the Church hall roof, masonry repairs and the replacement of toilet facilities. The extensive work was completed in Autumn 2022.

Throughout 2022, St. Leonard’s provided the space for the Lighthouse Project of Hackney Church to serve hot lunches and provide a temporary foodbank to the local people in need on a Thursday.

4. Financial Review

4.1 Financial Activity and Financial Position

The PCC’s main sources of ongoing funding are the free will offerings of church members, lettings income from the hiring out the Church, church hall, offices, and other property investments. We rely on grants for the conservation and repair to our Grade 1 listed building. We are immensely grateful to God and to all those who gave so generously. Other funding was from grants.

The Statement of Financial Activities and Balance Sheet can be found on pages 7 and 8 respectively. The Church’s reserves decreased by £45,036 during the year due to the repairs required on the church building (2020: Increased by £18,702). The balance sheet shows total net assets of £2,361,161 (2020: £2,421,923).

In 2021 the church had a total income of £270,830 (2020: £200,017) and total expenditure of £331,622 (2020: £181,340).

All expenditure was in support of the key objectives. It is analysed into different church activities in the financial statements. Most of the spending meets more than one of the key objectives.

4.2 Reserves Policy

The PCC has examined the requirements for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets. PCC policy is to not deliberately build up reserves. Any reserves that may exist, result from accumulated giving at any one time. At 31 December 2021 the church had net free reserves of £28,976 (2020: £74,012).

4.3 Investment Policy

The church currently places spare funds on bank deposit.

4.4 Grants Policy

The task of deciding how to distribute grants is done by the Rector and PCC with reference to the Treasurer. Grants are awarded to organisations, church members and community members based on an evaluation of each case. All giving follows St. Leonard’s mission policy of the promotion of the Christian gospel in proclamation and social action throughout the world.

4.5 Risk assessment and mitigation

The risks which the organisation faces have been considered and measures will be implemented to ensure that appropriate systems, policies and procedures are in place to manage and mitigate the risks. Specifically, where there is financial risk this is managed by strong financial systems and controls. These risks, including health and safety and employment, are being mitigated through modern management systems and practices. As a matter of general policy, independent professional advice is taken where appropriate.

5. Plans for Future Periods

The short and medium term plan is to continue with the same objectives and activities in support of them.

After having completed the works on the Church Hall and other extensive maintenance work within the building, we are continuing our objective of taking the Church off the Heritage England Buildings at Risk Register by raising funds to repair the structure and facilities of the building.

4

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Report of the Parochial Church Council For the year ended 31 December 2021

6. Responsibilities of Trustees for the Financial Statements

The PCC is responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law in England and Wales requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing those financial statements, the PCC is required to:

The PCC is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. The PCC is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The PCC is responsible for the maintenance and integrity of the charity and financial information included in the charity’s website.

7. Approval

The report of the PCC was approved by the PCC on 12 May 2022 and signed on its behalf by:

Rev’d Al Gordon Vicar

Date: 31 October 2022

5

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH Report of the Independent Examiner to the Parochial Church Council of The Parish of St Leonard’s Shoreditch

I report on the financial statements of The Parish of St Leonard’s Shoreditch for the year ended 31 December 2021, set out on pages 7 to 16.

This report is made solely to the Parochial Church Council in accordance with section 145 of the Charities Act 2011 (the Act). My independent examination has been undertaken so that I might state to the Church Council those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by the law, I do not accept responsibility to anyone other than the Trust and the Church Council for my independent examination, for this report, or the opinions I have formed.

RESPECTIVE RESPONSIBILITIES OF CHURCH COUNCIL AND EXAMINER

The Parochial Church Council considers that an audit is not required for this period (under section 144(2) of the Charities Act 2011) and that an independent examination is needed.

It is my responsibility to:

BASIS OF INDEPENDENT EXAMINER’S STATEMENT

My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the Church Council concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the accounts.

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 church 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.

John Helm ACA 31 October 2022

6

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Statement of Financial Activities For the year ended 31 December 2021

Note
Income from:
2
Donations and legacies
Charitable activities
Other trading activities
Investment income
Other income
Total Income
Expenditure on:
Maintaining Income Assets
3
Charitable activities
4
Total Expenditure
Net gains/(losses) on
investments
7
Net (Expenditure)/Income
5
Transfers between funds
Other recognised gains/(losses)
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
2021
£

60,474
91
41268
79,788
13,009		 Restricted
Funds
2021
£
73,862
-
-
-
-
73,862
-
89,588
89,588
-
(15,726)
-
-
(15,726)
17,218
1,492		 Unrestricted
Funds
2020
£
24,704
-
46,745
58,558
-
130,007
38,660
82,740
121,400
25
8,632
-
8,632
2,396,073
2,404,705		 Restricted
Funds
2020
£
70,010
-
-
-
-
70,010
-
59,940
59,940
-
10,070
-
10,070
7,148
17,218		 Total
2020
£
94,714
-
46,745
58,558
-
200,017
38,660
142,680
181,340
25
18,702
-
-
18,702
2,403,221
2,421,923
Total
2021
£
134,336
91
41,268
79,788
13,009
194,630
268,492
47,199
194,835
242,034
(46)
(47,450)
-
-
(47,450)
2,404,705
2,357,255
47,199
284,423
331,622
(46)

(63,176)

-
-

(63,176)

2,421,923
2,358,747

7

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Balance Sheet As at 31 December 2021

Note
Fixed Assets
Tangible Assets
6
Investments
7
Current Assets
Debtors
8
Cash At Bank and In Hand
Creditors - Amounts Falling Due
Within One Year
9
Net Current Assets
Creditors - Amounts Falling Due
After More Than One Year
10
Net Assets
Represented by:
Restricted Funds
11
Unrestricted Income Funds
Total Funds		 Unrestricted
Funds
2021
£
1,558
2,330,647
2,332,205
38,514
31,718
70,232
31,682
36,250
11,200
2,357,255
-
2,357,255
2,357,255		 Restricted
Funds
2021
£
-
-
0
-
1,492
1,492
-
1,492
-
1,492
1,492
-
1,492		 Total
2020
£
-
2,330,693
2,330,693
17,572
112,069
129,641
25,611
104,030
12,800
2,421,923
17,218
2,404,705
2,421,923
Total
2021
£
1,558
2,330,647
2,332,205
38,514
33,210
71,724
33,982
37,742
11,200
2,358,747
1,492
2,357,255
2,358,747

The financial statements were approved by the PCC on 12 May 2022 and signed on its behalf by:

Rev’d Al Gordon Vicar

Date: 31 October 2022

8

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

1. Accounting Policies

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

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting except for the revaluation of freehold land and buildings which are shown at market value.

The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe an affiliation to another body or those that are informal gatherings of church members.

The PCC meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the PCC has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

The income from trading activities includes rental income from the letting of church premises and freehold land and buildings which is accounted for when earned. It is shown gross, with the associated costs included in fundraising costs.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The PCC is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Expenditure included in Raising Funds includes amounts incurred in obtaining grants and other donations and property maintenance costs.

Charitable expenditure includes those costs in fulfilling the PCC’s principal objects, as outlined in the Report of the PCC. These include grants payable, governance costs and an apportionment of support costs.

9

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

1. Accounting Policies (continued)

Tangible Fixed Assets

Consecrated Property and Moveable Church Furnishings

Consecrated land and benefice property such as the church building and vicarage is excluded the accounts in accordance with s10 of the Charities Act 2011. Moveable church contents are held by the vicar and churchwardens on special trust for the PCC and require a faculty for disposal are accounted as inalienable property unless consecrated. All expenditure incurred on consecrated or benefice buildings and moveable church furnishings, whether maintenance or improvement, is expensed within the Statement of Financial Activities.

Fixed Asset Investments

Investments are stated at market value.

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

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

Creditors and provisions

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

Borrowings

The PCC has one category of borrowing - concessionary loans from the Diocese of London (on which no interest is payable), which is recognised at the amount received.

Fund accounting

The funds held by the charity are either:

10

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

2. Income

2. Income
Donations and legacies
Offerings and donations
Income tax reclaimed
Grants
Charitable activities
Fee income (net of fees paid to Diocese)
Other trading activities
Church lettings income
Use of staff
Investments
Rental income
Bank Interest
Other Income
Insurance claim		 Unrestricted
Funds
2021
£
Restricted
Funds
2021
£
22,776
-
(672)
-
38,370
73,862
60,474
73,862
91
-
40,401
-
867
-
41,268
0
79,312
-
476
-
79,788
0
13,009
-
0
0
194,630
73,862
Total
2021
£

3. Cost of Maintaining Income Assets

Unrestricted
Funds
2021
£
Restricted
Funds
2021
£
10 Hoxton Square property – running costs
15,338
-
Clerk’s House property – running costs
3,458
-
36 Hoxton Square property - running costs
15,753
-
Provision for bad debt
12,650
-
Legal and professional
-
-
47,199
0
Total
2021
£

11

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

4. Expenditure on Charitable Activities

Unrestricted
Funds
2021
£
Common Fund
41,900
Church Life and Outreach
Upkeep of services
1,506
Evangelism
399
Outreach
-
Clergy expenses
4,304
Parish events
481
Training
Worship
1,546
8,236
Provision of Office and Support
Telephone and broadband
705
IT expenditures
597
Office costs
76
Accountancy
Other
-
1,378
Provision of Buildings and Facilities
Heat, light and water
10,355
Insurance
9,936
Repairs, maintenance and cleaning
36,890
Facilities management (recharged salaries)
-
57,181
Building Restoration
Professional fees
12,399
Contractors
63,466
Project consultant
9,295
Engagement
-
Archaeology
-
85,160
Governance costs
Independent Examination fee
980
PCC Meeting expenses
-
194,835		 Restricted
Funds
2021
£
-
-
-
389
-
-
-
389
-
-
-
-
-
0
-
750
-
-
750
7,652
80,797
-
-
-
88,449
0
-
89,588
Total
2021
£

12

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

5. Net (Expenditure)/Income

This is stated after charging:
Independent examination fee
Other fees paid to independent examiner		 2021 2021 2020
£ £
980 1,130
- -

6. Tangible Fixed Assets

Cost at 1 January 2021
Additions during the year
Disposals during the year
Cost at 31 December 2021
Depreciation at 1 January 2021
Charge for the year
Disposals during the year
Depreciation at 31 December 2021
Net Book Value at 1 January 2021
Net Book Value at 31 December 2021		 PA & AV
Equipment
£		 PA & AV
Equipment
£

£
-
1,700
-
1,700
-
142
-
142
-
1,558

The church building - St Leonard’s Church, Shoreditch High Street - is a consecrated building which is used and maintained by the Parish.

7. Fixed Assets Investments

At 1 January 2021
Revaluation
Disposals/redemptions
At 31 December 2021		 Shares
£
693
(46)
-
647		 Property
£
2,330,000
-
-
2,330,000		 Total
£
2,330,693
(46)
-
2,330,647

The church’s investment properties are:

 10 Hoxton Square, Shoreditch, London N1 6NU. The property, which consists of several self-contained flats, is currently let on a mixture of market and below market rates.

13

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

8. Debtors

8. Debtors
Prepayments
Accounts receivable
Rent receivable
Income tax recoverable
Grants receivable
Other debtors		 2021
£

9. Creditors - Amounts Falling Due Within One Year


Accruals
Accounts payable
Other Creditors
Loan (2) - Diocese of London
Loan (3) - Diocese of London		 2021
£

Loan (3) - Diocese of London Area Loan of £20,000 is repayable at £800 per month beginning February 2022. No interest charged.

10. Creditors - Amounts Falling Due After More Than One Year

Loan (3) - Diocese of London

----- Start of picture text -----
2021 2020
£ £
11,200 12,800
----- End of picture text -----

14

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

11. Restricted Funds

11a Current year
Historic England Minor Repairs
Veolia Building Grant
Covid Relief Grant
Homeless and Addiction projects
Church Hall Grant

11b Prior year
West elevation project
Historic England Minor Repairs
Covid Relief Grant
Homeless and Addiction projects
First Aid equipment		 At 1
January
2021
£
14,587
-
750
1,881
0
17,218		 At 1
January
2021
£
14,587
-
750
1,881
0
17,218		 Income
£
Expenditure
£
Transfers
£
4,862
(19,449)
-
64,000
(64,000)
0
(750)
-
0
(389)
-
5,000
(5,000)
-
73,862
(89,588)
0		 Income
£
Expenditure
£
Transfers
£
4,862
(19,449)
-
64,000
(64,000)
0
(750)
-
0
(389)
-
5,000
(5,000)
-
73,862
(89,588)
0		 Income
£
Expenditure
£
Transfers
£
4,862
(19,449)
-
64,000
(64,000)
0
(750)
-
0
(389)
-
5,000
(5,000)
-
73,862
(89,588)
0		 Gains/
(losses)
£
-
-
-
-
0		 At 31 At 31
December
2021
£
-
-
-
1,492
-
1,492

At 1
January
2020
£
5,248
0
0
1,881
19
7,148
Income
£
Expenditure
£
Transfers
£
39,723
(44,971)
-
14,587
-
-
15,700
(14,950)
-
-
-
-
-
(19)
-
70,010
(59,940)
0
Gains/
(losses)
£
-
-
-
-
-
0
At 31
December
2020
£
-
14,587
750
1,881
-
17,218

Descriptions of the main restricted funds are as follows:

West elevation project – income received for the repair of the church west elevation.

Historic England Minor Repairs – Grant received for repairing the church hall roof.

Veolia Building Grant – Grant received for repairing the church hall roof.

Church Hall Grant – Grant received for the repairing of the church hall roof.

Homeless and Addiction Projects – income received for the Spitalfields Crypt Trust project and other local work for homeless people.

Covid Relief Grant – A National Lottery Heritage Emergency Fund grant to help cover the costs of the heritage building during lockdown and re-openings.

15

THE PCC OF THE ECCLESIASTICAL PARISH OF ST LEONARD SHOREDITCH

Notes to the Financial Statements For the year ended 31 December 2021

12. Related Party Transactions

The PCC offers some accommodation at the PCC’s investment property in Hoxton Square below commercial rent to some of our volunteers, two of whom are members of the PCC.

No members of the PCC were paid any amounts in 2021 (2020: 3 members of the PCC were paid £6,250 for engagement work on our heritage projects).

Members of the PCC and their related parties made aggregate unrestricted known donations of £12,835 (2020: £18,895) during the year.

16