## **St Margaret’s Church, Chipstead Parish** ## **Annual Report and Accounts** ## **of the Parochial Church Council** # **For the year ended 31 December 2021** # **Registered Charity No: 1139738** **Church Lane, Chipstead, Surrey CR5 3RD Tel. no: 01737 552160** **www.stmargaretschipstead.org** ## **Financial Statements and Annual Report for the year ended 31[st] December 2021** |**Contents**|**Page**| |---|---| |Annual Report of the Parochial Church Council|1-8| |Independent Examiner’s Report|9| |Statement of Financial Activities|10| |Balance Sheet|11| |Notes to the Financial Statements|12-21| ## **St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021** The Annual Report of the Parochial Church Council will be read to the Annual Meeting, and copies will be available from the Church Office ## **Introduction** St Margaret’s Church Parochial Church Council (PCC) is required, as stated in the Parochial Church Councils (Powers) Measure 1956, to cooperate with the minister in promoting in the ecclesiastical parish the whole mission of the Church – pastoral, evangelistic, social and ecumenical. ## **Membership of the Parochial Church Council** Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting in accordance with the Church Representation Rules. PCC Members serve for a period of three years and are then eligible to be re-elected for one further three year term. After six years, an elected PCC member must stand down for a period of at least one year. During the year the following served as members of the PCC: ## **Officers:** Chairman: The Rev’d Susan Merrilyn Marsh Williams # - (To 31 January 2022) Vice Chair Christopher Howard Taylor # (Chairman from 1 February 2022) Churchwarden: Ray King # Shirley Page # - stood down at 2021 APCM Secretary: Sarah Anne Bowes # Treasurer: Martin Mabbutt # - to 25/7/2021 ## **PCC members** Rev John Norman Wates # Madeleine MacCallum Andrew James Christie Britton Tom Sanderson Ian Thirlwall Kat Wicksteed Perry George Lee Esparon Steve Cheng Whitehead - to 12//7/2021 Kim Michelle Honey - to 12/7/2021 Eamonn Davern - co-opted 22/11/2021 The following members stood down at the 2021 APCM held on 19th April 2021) Katy Deragon Madeleine MacCallum Andrew James Christie Britton Ann Jennifer Elliott Nee Reading David MacCallum Wendy Morgan David Wetherall Fofo Lappin Angela Robertson # Management personnel 1 - ## **St Margaret’s Church, Chipstead Parish** ## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** ## **Key Management Personnel** The PCC listed on page 1 are also considered to be key management personnel as they are in charge of directing, controlling, running and operating the church on a day- to-day basis. Details of PCC members’ expenses and other related party transactions are disclosed in Note 8 to the financial statements. Other than The Rev'd Susie Williams, none of the key management receives any remuneration. The Rev'd Susie Williams is remunerated by the Diocese of Southwark. She receives no remuneration from the PCC. ## **Advisers** **Bankers** Natwest Wallington Branch 27 Woodcote Road Wallington Surrey SM6 0LN **Independent Examiners** Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW **Correspondence Address** The Parish Office Church Lane Chipstead Surrey CR5 3RD 2 - ## **St Margaret’s Church, Chipstead Parish** ## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** ## **Our aims and purposes as a charity** The Parochial Church Council (PCC) of St Margaret’s, Chipstead has the responsibility for co-operating with the incumbent, the Reverend Susie Williams, in promoting in the ecclesiastical parish of Chipstead, the gospel and whole mission of the Church, pastoral, evangelistic, social and ecumenical. The PCC is specifically responsible for the maintenance of the Church building, the Orchard and the churchyard, the Peter Aubertin Hall in Chipstead, and the Mission Hall in Mugswell. Our Mission Statement reflects our ethos: _To know and share God's transforming love with one another, with our local community and with the wider world._ ## **What we planned to do to achieve our charitable objectives** When planning our activities for the year the PCC considered the Charity Commission’s guidance on public benefit. The council has complied with the duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016, fully recognising its duty to have due regard to House of Bishops' guidance on safeguarding children and vulnerable adults. ## Our aims: To enable as many people as possible to know Christ, worship him and grow in faith within our church and parish. To teach, baptise and nurture new and existing believers. To involve and seek to build bridges between the many, often varied, groups that live within the parish. To put faith into practice, through prayer and scripture, music and sacrament. To build upon our worship and prayer and learning about the Gospel in small group situations. To assist people of all ages and from all walks of life to develop their knowledge of, and trust in, Jesus. To provide pastoral care for people living in the parish and also for the members of the congregation who live outside of the parish. To support the homeless in the deanery. To continue to provide assistance to the poor and needy. To assist other organisations financially. ## **Mission Action Plan (MAP)** Our MAP has three priorities: - To develop our children and youth activities - To provide Pastoral Care and Community Support - To develop our ministry in Netherne The measures taken to control and mitigate the COVID-19 pandemic have restricted our ability to progress some of these priorities during 2021. Notwithstanding that a review and reconfirmation of these priorities was undertaken during 2019, we believe that as the country emerges from the effects of this pandemic, the church and the 3 - ## **St Margaret’s Church, Chipstead Parish** ## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** community we serve are likely to face new challenges. Therefore, we are committed to reviewing our MAP priorities again once we have some experience of post pandemic life. ## **Achievements and Performance** 2021 has continued to be a challenging year for the whole country as we have adapted to the constantly changing restrictions placed on our daily lives in order to control COVID infections. Whilst the church has been open for services for the majority of the year, the number and form of those services has been restricted. For example, over the course of the year we moved from being able to administer communion in one form only to, later in the year, being able to reincorporate wine into the act of communion albeit by intinction only. Also, for the first part of the year, we were not allowed to include communal singing within our services where they were held inside church buildings. We responded to this in various ways. For example, we held a number of services outside during the spring period so as to allow communal singing. We reintroduced this for our Carols by Candlelight services in December when the Omicron variant started to become prevalent. At the start of September 2021, our Rector, the Reverend Susie Williams, went on a period of extended sick leave. She resigned from her post with effect from 31 January 2022 without having returned from sick leave. Also, during the year, one of our Readers, Kim Honey, took up employment in Iceland. This has put increased pressure on a small but dedicated team of lay service leaders and preachers who have risen to the challenge magnificently in order to ensure that we can continue to provide weekly Sunday worship. However, this resource is limited, and as we emerged from the pandemic we were not able to reintroduce the pre pandemic pattern of worship. We have therefore reverted to one service at 10.00 am on a Sunday where the whole congregation can worship together. We remain committed to keeping the pattern of services under review whilst being mindful of the pressure placed on our lay service leaders and preachers. In March, we welcomed Josh Askwith as our new Youth and Communities Leader and he has achieved much during his time with us to move the youth ministry forward. He has a number of further exciting initiatives in the pipeline. In May, our Children and Families leader, Abi Page, left us after having served us wonderfully and created a strong and vibrant Junior Church. A small team of dedicated volunteers is maintaining the junior church activity whilst we search for a new Family and Children’s leader. During the year, the PCC commissioned a review of the administrative structures operated by the church. This review was carried out by John Truscott, an expert in the field of church administration. John reported back to the PCC in March 2021 and since then the PCC has been working through a series of **St Margaret’s Church, Chipstead Parish** 4 - ## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** initiatives aimed at implementing the recommendations made. This has formed a significant part of the PCC’s agenda over the course of the year and, by implementing the recommendations, we aim to position the church to run our affairs more efficiently and effectively. As we emerge from the pandemic and enter what is likely to be an extended period of interregnum, we will go through a process of redefining our activities as a church and preparing ourselves for the arrival of a new Rector. As part of this, we will be reviewing our Mission Action Plan and deciding on our priorities for the next few years. In the interim, we are very grateful for the support of the Diocese of Suffolk and of St Mary’s Reigate in allowing the Reverend Erin Gilmour to work with us on a part time basis. Amongst other things, Erin is leading the Sunday services twice a month thus relieving some of the pressure on the team of lay service leaders and preachers. ## _Electoral Roll_ At the year end our number stood at 169 (2020 - 180). The whole electoral roll is reconstituted every 6 years and this is next scheduled to be done in 2025. ## **2021 Financial Review** The church continues to enjoy a very strong overall financial position thanks to the substantial legacies received in recent years, totalling £900,000 in 2019 and 2020. During 2021 we received further legacies totalling £7,900 in the unrestricted funds and £5,000 specifically for the Fabric fund. The bulk of the £7,900 arose from a residual payment (£7,700) relating to the estate of the late June Jueitt. At the end of 2021 we enjoyed a net cash position of £970,000. A decision was made by the newly formed finance committee to invest a substantial portion of these monies in financial assets managed by CCLA ( a church financial institution) with the aim of improving our long term returns relative to holding cash. Were it not for the legacies the church would not be in a healthy position. The underlying deficit continues to grow as a result of planned giving declining steadily since 2016. The overall deficit for the year was £81k, and would have been £94k without the additional legacy monies received. Planned giving together with the associated gift aid recovered was almost £20k below the levels of 2020 which in turn was £27k less than in 2019 and was the principal reason for our underlying deficit continuing to grow. Since 2016 there has been a £92k decline in planned giving. Most of the church’s income is regular giving rather than received at services and therefore it is unlikely that the lack of people coming into our church as a result of the Covid pandemic will have materially impacted income. As normality has begun to return so costs have stabilised after the substantial fall reported last year. Staff costs fell by £9k in 2021 reflecting the loss of our children and families worker halfway through 2021, partially offset by the recruitment of a new youth worker towards the end of the year. Our two church halls, Peter Aubertin and Mugswell have begun to see bookings pick up after the problems of the past two years but revenue remains far below the levels seen prior to 2020. Revenue for the PA hall saw a marginal increase over 2020 and we took the opportunity created by the lack of bookings to carry out maintenance projects. As a result the hall accounts show a loss of over £9k. 5 - ## **St Margaret’s Church, Chipstead Parish** ## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** The financial outlook for 2022 is poor. Inflation is likely to significantly impact most elements of our costs and even on the basis that planned giving does not decline any further our deficit is forecast to grow further in the current year. Our expectation is that the church will continue to operate at a deficit for the foreseeable future and while this is no longer a concern in the short term thanks to the substantial resources we enjoy, the size and expected growth of the deficit cannot be ignored longer term At 31 December 2021, total funds amounted to £1,002,497 (2020: £1,083,015) of which £100,309 (2020: £109,115) were restricted and £132,278 (2020: £132,278) were in the Endowment Fund. ## **Statement of PCC responsibilities** The Parochial Church Council (PCC) is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The Church Accounting Regulations 2006 require the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Council and of its financial activities for that period. In preparing those financial statements, the PCC is required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgments and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The PCC is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Council and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. It 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. 6 - ## **St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** ## **Risk assessment** The PCC is satisfied that there are procedures in place to mitigate exposure to major risks. The PCC considers the principal risks and uncertainties facing the Church and their plans and strategies for managing these risks to be: |**Potential Risk**|**Potential Impact**|**Steps to mitigate risk**| |---|---|---| |Security of assets|• loss or damage
• theft of assets|• review security arrangements
• asset register and inspection programme
• review insurance cover| |Fund-raising|• unsatisfactory returns
• reputational risks of campaign or
methods used
• actions of agents and commercial
fund-raisers
• compliance with law and
regulation|• implement appraisal, budgeting and authorisation
procedures
• review regulatory compliance
• monitor the adequacy of financial returns achieved
• stewardship reporting in annual report| |Disaster recovery and
planning|• computer system failures or loss
of data
• destruction of property,
equipment, records through fire,
flood or similar damage|• agree IT recovery plan
• implement data backup procedures and security
measures
• review insurance cover
•create disaster recovery plan| |Cash flow sensitivities|• inability to meet commitments
• lack of liquidity to cover variance
in costs
• impact on operational activities|• ensure adequate cash flow projections (prudence of
assumptions)
• identify major sensitivities
• ensure adequate information flow from operational
managers
• monitor arrangements and reporting| 7 - ## **St Margaret’s Church, Chipstead Parish** ## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)** ## **Reserves policy** The PCC needs reserves to cover short term shortfalls in income and to cover unexpected expenditure. The vast majority of the PCC's income derives from voluntary donations. Whilst a significant proportion of these donations are planned, there is a level of unplanned giving which is not always predictable. In addition, due to changes in circumstances within the congregation, planned giving may not always match the level pledged at the start of the year. Reserves allow the PCC to better manage short term fluctuations in the level of giving. In addition, the running costs of the church are not always predictable and reserves allow the PCC to cope with unexpected expenditure which may arise from time to time. It is PCC policy to try to maintain a balance on free reserves which equates to at least three months of unrestricted payments, which would equate to £75k. At the end of 2021 unrestricted reserves were £769,000. ## **Fundraising** The PCC engaged in fundraising, in the form of receiving donations, some of which were gift-aided, from members of our fellowship. The PCC did not contract the service of any professional fundraisers as defined by section 58 of the Charities Act 1992. The PCC is satisfied that its fundraising practices are ethical. No complaints were received about our fundraising practices. ## **Investment policy** The PCC is risk averse in its investment policy placing surplus cash on deposit with the CBF Church of England Deposit Fund or with large banks. Chris Taylor Chairman Date 13th March 2022 8 - ## **St Margaret’s Church, Chipstead Parish INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS OF THE PAROCHIAL CHURCH COUNCIL** I report to the charity trustees on my examination of the accounts of the St Margaret’s Parochial Church Council (the Church) for the year ended 31 December 2021 set out on pages 10 to 21. ## **Responsibilities and basis of report** As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the Trust’s accounts as carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner’s statement** I have completed my examination. I confirm that no 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 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Report) 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; or 4. the accounts have not been prepared in accordance with the methods and principles of 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 the Republic of Ireland (FRS 102). 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. Miriam Hickson CTA FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW Date: 9 - ## **St Margaret’s Church, Chipstead Parish Statement of Financial Activities for the year ended 31 December 2021** |**For the year ended 31**
**December 2021**||**2021**|**2021**||||**2020**|**2020**|| |---|---|---|---|---|---|---|---|---|---| ||**Unrestricted**|**Restricted**|**Endowment**|**TOTAL**||**Unrestricted**|**Restricted**|**Endowment**|**TOTAL**| ||**Funds**|**Funds**|**Funds**|**2021**||**Funds**|**Funds**|**Funds**|**2020**| |Notes|**2(a)**|**2(b)**|**10**|||**2(a)**|**2(b)**|**10**|| |**INCOME**|**£**|**£**|**£**|**£**||**£**|**£**|**£**|**£**| ||||||||||| |Voluntaryincome|168,978|5,200||174,178||181,182|14,233||195,415| |Income from church
activities|15,098|0||15,098||12,036|-||12,036| |Activities for
generatingfunds|3,604|10,071||13,675||3,974|9,747||13,721| |Income from
investments|1,165|||1,165||3,315|-|-|3,315| ||||||||||| |**Total Income**|188,845|15,271||204,116||**200,507**|**23,980**|**-**|**224,487**| ||||||||||| |**EXPENDITURE**|||||||||| |Church activities|260,332|22,802||283,134||262,396|18,275|-|280,671| |Raisingfunds|225|1,275||1,500||1,464|9,352||10,816| ||||||||||| |**Total Expenditure**|260,557|24,077||284,634||**263,860**|**27,627**|**-**|**291,487**| ||||||||||| |**Net**
**Income/(Expenditure)**|(71,712)|(8,806)||(80,518)||(63,353)|(3,647)|-|(67,000)| |Transfer between
funds||||||-|-|-|-| |**Net movement in**
**funds**|(71,712)|(8,806)||(80,518)||(63,353)|(3,647)|-|(67,000)| |**Reconciliation of**
**funds**|||||||||| |Total funds brought
forward|841,622|109,115|132,278|1,083,015||904,975|112,762|132,278|1,150,015| ||||||||||| |**Total funds carried**
**forward**|769,910|100,309|132,278|1,002,497||841,622|109,115|132,278|1,083,015| 10 - ## **St Margaret’s Church, Chipstead Parish Balance sheet as 31 December 2021** ||**Notes**||**2021**||**2020**| |---|---|---|---|---|---| ||||**£**||**£**| |**FIXED ASSETS**|||||| |Tangible assets|3||8,194||13,240| |**CURRENT ASSETS**|||||| ||||||| |Debtors|5|31,706||15,967|| |Cash at bank and in hand||972,205||1,072,718|| ||||||| |||1,003,911||1,088,685|| ||||||| |**LIABILITIES: AMOUNTS FALLING**|||||| |**DUE WITHIN ONE YEAR**|6|9,608||18,910|| ||||||| |**NET CURRENT ASSETS**|||**994,303**||**1,069,775**| ||||||| ||||||| |**NET ASSETS**|||**1,002,497**||**1,083,015**| ||||||| ||||||| |**PARISH FUNDS**|||||| ||||||| |Unrestricted|7||769,910||841,622| |Restricted|7||100,309||109,115| |Endowment|7||132,278||132,278| ||||||| ||||**1,002,497**||**1,083,015**| The accounts were approved by the PCC on 28th March 2022 and signed on behalf of the PCC by: Chris Taylor Chairman 11 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st 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 preparation** The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102).The financial statements have been prepared under the historical cost convention. The accounts 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 their main affiliation to another body nor those that are informal gatherings of Church members. The financial statements are prepared in sterling, which is the functional currency of the PCC. Monetary amounts in these financial statements are rounded to the nearest £. The PCC meets the definition of a public benefit entity under FRS102. ## **Going concern** The PCC have prepared detailed forecasts and cash flow projections which they believe are based upon reasonable assumptions. The forecasts show that the church should be able to operate for the foreseeable future and thus the trustees consider it appropriate to prepare the financial statements on a going concern basis. ## **FUNDS** 1. **Unrestricted Funds** represent the resources of the PCC that are not subject to any restrictions regarding their use and are available for the general purposes of the PCC. 2. **Restricted Funds** represent resources which the PCC has indicated to donors and fundraisers will be used for specified purposes: **The Fabric Fund** mainly derives from major donations and special events to meet major expenses on repairs and renewals of the Church and the Churchyard. **Trust Funds** consist of donations made specifically for the upkeep of certain graves. **The Bell Fund** contains specific donations and surpluses from the use of bells at weddings set aside to meet future maintenance of and improvements to the bells and to meet bell ringer expenses. **Specific Collections** consist of donations received at services and other Parish occasions for purposes specified at the time of collection. **The Appeal Fund** contains donations made and the proceeds of special events undertaken for the purposes of funding the construction of The Orchard. **The Peter Aubertin Hall Fund** consists of income from operating activities of the Hall, specific fundraising events and donations for the improvement of the Hall. **The Mugswell Hall Fund** consists of income from the operating activities of the Hall and specific donations for the maintenance and improvement of the Hall **The Endowment Fund** represents resources provided to build up a fund to ensure the future financial wellbeing of the Church. The Endowment Fund, a portion of which was originally donated in the 1970s, was done so with the restriction that it should not be spent on any activities outside of the parish, or routine running costs of the church. It is the policy of the PCC that it should be used as a reserve against major expenditure on the church fabric and churchyard. 12 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** ## **1. ACCOUNTING POLICIES (continued)** ## **Income recognition** All income is recognised once the Church has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. 1. Voluntary Income - Collections at services are recognised when received on behalf of the PCC. - Planned giving is recognised when received and related Gift Aid is accrued for. - Funds raised through events are accounted for gross. - Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement, the amount is quantifiable and the ultimate receipt by the PCC is considered probable. ## Other Income - Operating income from other sources such as letting of church premises, magazine sales/advertising and parochial fees is recognised when due. - Income from bank and CBF interest is recognised when received ## **Expenditure** - All expenditure is accounted for on an accruals basis. ## **Fixed Assets** Consecrated Property and Movable Church Furnishings - Consecrated land/buildings and equipment are not included in the financial statements by virtue of the Charities Act 2011 Under the PCCs (Powers) Measure 1956, all PCCs are trustees of income and expenditure but not necessarily of assets, so that any expenditure whether maintenance or improvement , incurred on consecrated or benefice buildings or moveable church fittings, is written off as expenditure in the year. - Movable church furnishings held by the Rector and Churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted for as inalienable property unless consecrated. They are listed in the church inventory which can be inspected at any time. Other church buildings - The accounts for the PA Hall and Mugswell Hall are both shown under restricted funds. The PCC has made a decision not to show these buildings within fixed assets. Both of these halls were built before the start of the 20th century and the PCC believes that in the context of today’s accounts showing these at cost would be immaterial. - The Orchard - The PCC believes that since the Diocese of Rochester owns the church, the churchyard and the land on which the Orchard is built, it would be inappropriate to capitalise the Orchard as if it belonged to us. - Depreciation is provided at the following rates to write off the cost of fixed assets over their useful lives: - Furniture, fittings & equipment- Straight line over 3 - 5 years 13 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** ## **1. ACCOUNTING POLICIES (continued)** ## **Current assets** Income tax recoverable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. 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 Church 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. ## **Financial instruments** The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. ## **2 Income and Expenditure** The PCC has chosen to show income and expenditure on a fund by fund basis for both the historic and current periods.This gives greater clarity rather than the amalgamated basis for the historic period which is outlined in the PCC Accountability Manual (published 2006 and updated to incorporate SORP 2015). 14 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** |**Note 2a Unrestrictedgeneral church funds**||**2021**|**2020**| |---|---|---|---| |**INCOME**||**£**|**£**| |Voluntary income|||| |Planned Giving||123,242|136,619| |Collections(plate)at services||1,522|1,812| |Income tax recoverable||25,192|30,368| |Grants received||18|3,092| |Donations etc.||11,081|8,791| |Legacies||7,923|500| |||168,978|181,182| |Income From Church Activities:|||| |Wedding,Baptism and Funeral fees||15,073|11,988| |Contractual income||25|48| |||15,098|12,036| |Activities for generating funds|||| |Magazine sales||2,031|1,649| |Magazine advertising||1,082|1,395| |Fetes and other fundraising events||41|-| |Orchard hire||450|930| |||3,604|3,974| |Interest income||1,165|3,315| |**TOTAL INCOME**||**188,845**|**200,507**| |**EXPENDITURE**|||| |Church Activities|||| |Parish Share||120,000|120,000| |Clergy expenses||1,821|884| |Church buildingmaintenance||6,520|8,143| |Churchyard maintenance||492|151| |Youth,children,music and hospitality||31,610|37,150| |Church running expenses||47,760|38,692| |Organ costs||-|300| |General & secretarial expenses||30,419|31,765| |Printingand stationery||8,550|8,966| |Depreciation||5,046|5,046| |||252,218|251,097| |Grants|||| |Overseas mission societies||3,484|7,697| |Christian relief & development agencies||500|500| |Home mission & other church societies||4,130|3,102| |||8,114|11,299| 15 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** |**Note 2a Unrestrictedgeneral church funds(continued)**|**Note 2a Unrestrictedgeneral church funds(continued)**|**Note 2a Unrestrictedgeneral church funds(continued)**|**Note 2a Unrestrictedgeneral church funds(continued)**|**Note 2a Unrestrictedgeneral church funds(continued)**|**Note 2a Unrestrictedgeneral church funds(continued)**| |---|---|---|---|---|---| |Fund Raising costs|||||| |Fund raising costs total||225||1,464|| |**TOTAL EXPENDITURE**||260,557||**263,860**|| ||||||| |**Note 2(b) Restricted Funds**|||||| |**Trust Funds**|||**2021**||**2020**| ||||**£**||**£**| |**Income**|||||| |Dividends & Interest|||-||-| |**Expenditure**|||||| |Flowers & upkeepofgraves|||-||-| |**Net Income**|||**-**||**-**| |Balance at 1 January|||367||367| |**Balance at 31 December**|||367||**367**| ||||||| |**Bell Fund**|||**2021**||**2020**| ||||**£**||**£**| |**Income**|||||| |Interest|||-||-| |Surplus from weddings|||-||-| |**Net income**|||**-**||**-**| |Transfers|||-||-| |Balance at 1 January|||28,576||28,576| |**Balance at 31 December**|||**28,576**||**28,576**| ||||||| |**Specific Donations**|||**2021**||**2020**| ||||**£**||**£**| |**Income**|||||| |Collections|||-||30| |Donations etc|||100||9,202| |Events|||-||-| ||||100||9,232| |**Expenditure**|||||| |Overseas mission societies|||||| |Christian relief & development agencies|||4,001||459| |Home mission & other church societies|||||-| |Secular charities|||-||(689)| |Refunds|||-||9,202| |Total Grants|||4,001||8,972| 16 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** ## **Note 2 (b) Restricted Funds (continued)** |**Note 2 (b) Restricted Funds (continued)**|||| |---|---|---|---| |**Net Income**||(3,901)|260| |Balance at 1 January||5,455|5,195| |**Balance at 31 December**||**1,554**|**5,455**| ||||| |||**2021**|**2020**| |**Appeal Fund**||**£**|**£**| |**Income**||100|-| |**Expenditure**|||| |Grants to home mission & other church societies||-|-| |Costs of Fundraising||-|-| |Equipmentpurchases||-|3,136| |||-|3,136| |**Net Income/(expenditure)**||**100**|**(3,136)**| |Balance at 1 January||6,803|9,939| |**Balance at 31 December**||**6,903**|**6,803**| ||||| |**Peter Aubertin Hall**||**2021**|**2020**| |**Income**||**£**|**£**| |Operatingactivities togenerate funds||-|-| |Church hall lettings||9,644|9,525| |||9,644|9,525| |Dividends & interest||-|-| |Other Income||-|-| |||9,644|9,525| |**Expenditure**|||| |Church hall runningcosts||6,139|6,849| |Church hall buildingmaintenance||8,940|3,500| |Administration of Hall Bookings||4,000|4,000| |||19,079|14,349| |**Net Income**||**(9,435)**|**(4,824)**| |Transfers||-|-| |Balance at 1 January||10,439|15,263| |**Balance at 31 December**||**1,004**|**10,439**| ||||| 17 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** ## **Note 2(b) Restricted funds (continued)** |**Note 2(b) Restricted funds (continued)**|||| |---|---|---|---| |**Mugswell Hall**||**2021**|**2020**| |||**£**|**£**| |**Income**|||| |Donations||-|-| |Church hall lettings||427|235| |||427|235| |**Expenditure**|||| |Church hall running costs||998|1,022| |Church hall buildingmaintenance||-|148| |||998|1,170| |**Net Income**||**(571)**|**(935)**| |Balance at 1 January||2,487|3,422| |**Balance at 31 December**||**1,916**|**2,487**| ||||| |||**2021**|**2020**| |**Fabric Fund**||**£**|**£**| ||||| |**Income**|||| |Bequest||5,000|4,988| |**Expenditure**|||-| |**Net Income**||**5,000**|**4,988**| |Balance at 1 January||54,988|50,000| |**Balance at 31 December**||**59,988**|**54,988**| 18 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** |**3: Fixed assets for use by the PCC**
Cost
At 1 January2021
Additions at cost
At 31 December 2021
Depreciation
At 1 January2021
Charge for theyear
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020|**3: Fixed assets for use by the PCC**
Cost
At 1 January2021
Additions at cost
At 31 December 2021
Depreciation
At 1 January2021
Charge for theyear
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020||||| |---|---|---|---|---|---| |||Furniture, fittings and
equipment|||| ||At 1 January2021|22,218|||| ||Additions at cost|-|||| ||At 31 December 2021|22,218|||| ||||||| ||At 1 January2021|8,978|||| ||Charge for theyear|5,046|||| ||At 31 December 2021||||| |||14,024|||| ||At 31 December 2021||||| |||8,194|||| ||At 31 December 2020||||| |||13,240|||| ||||||| |**4: Staff Costs**||||**2021**|**2020**| |||||**£**|**£**| |Wages and salaries||||49,305|58,096| |Social security costs||||934|1,204| |Employers Pension costs||||1,603|1,354| |Total||||51,842|60,654| |Average number of employees||||3|3| Wages and salaries include the administration costs charged against the PA Hall accounts. At the start of the year the PCC employed a finance assistant and a children and families worker, none of whom earned £60,000 pa or more. Our children and families worker left during 2021 and we recruited a youth worker. None of the employees were members of the PCC during 2021. There were no employee benefits to key management personnel in the previous or current year. |**5 Debtors**||**2021**|**2020**| |---|---|---|---| |Due within one year||**£**|**£**| |Income Tax recoverable||24,809|9,543| |Prepayments||5,667|5,491| |Other Debtors||1,229|933| |Total debtors||31,705|15,967| ||||| |**6 Liabilities**||**2021**|**2020**| |Amount fallingdue within oneyear||**£**|**£**| |Deferred Income||150|300| |Accruals||9,458|18,610| |Total liabilities||9,608|18,910| 19 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** |**7 Analysis of Net Assets by Fund**||||| |---|---|---|---|---| |||||| ||**2021**|||| ||Current|Fixed assets|Current|Fund| ||Assets||Liabilities|Balance| ||£|£|£|£| |Unrestricted Funds|769,738|8,194|(8,022)|769,910| |Fabric Fund|59,988|||59,988| |Trust Funds|367|||367| |Bell Fund|28,576|||28,576| |Appeal Fund|6,903|||6,903| |Specific Donations|1,554|||1,554| |PA Hall|1,982||(976)|1,004| |Mugswell Hall|2,525||(610)|1,917| |Endowment Fund|132,278|||132,278| |||||| |Total Funds|1,003,911|8,194|(9,608)|1,002,497| |||||| ||**2020**|||| ||Current|Fixed assets|Current|Fund| ||Assets||Liabilities|Balance| ||£|£|£|£| |Unrestricted Funds|846,090|13,240|(17,708)|841,622| |Fabric Fund|54,988||-|54,988| |Trust Funds|367||-|367| |Bell Fund|28,576||-|28,576| |Appeal Fund|6,803||-|6,803| |Specific Donations|6,009||(554)|5,455| |PA Hall|11,087||(648)|10,439| |Mugswell Hall|2,487||-|2,487| |Endowment Fund|132,278||-|132,278| |||||| |Total Funds|**1,088,684**|**13,240**|**(18,910)**|**1,083,015**| 20 - ## **St Margaret’s Church, Chipstead Parish** ## **Notes to the Financial Statements for the year ended 31st December 2021 (continued)** ## 8. Related party transactions During the year 1 (2020: 1) member of the PCC was reimbursed £67 (2020: £317) for travel and subsistence expenses. Abigail Page (daughter of Shirley Page who was a PCC member until April 2021) received remuneration of £10,895 (2020: £18,307) for her role as Children and Families worker ## 9. Lease Commitments The total future minimum lease payments under non-cancellable operating leases are payable: |||**2021**|**2020**| |---|---|---|---| |||**£**|**£**| |Within 1year||1,430|1,430| |Within 2 to 5 years||2,860|3,934| |||4,290|5,364| ||||| |Leasepayments duringtheyear||1,430|1,799| ## 10. Endowment fund The Endowment Fund, a portion of which was originally donated in the 1970s, was done with the restriction that it should not be spent on any activities outside of the parish, or on routine running costs of the church. During 2018 the cost of strengthening the Bell Tower and adding a wooden gallery, were charged against the fund. There was no expenditure charged against the fund in 2019, 2020 and 2021. 21 -