St Margaret’s Church, Chipstead Parish
Annual Report and Accounts
of the Parochial Church Council
For the year ended 31 December 2023
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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 2023
| Contents | Page |
|---|---|
| Annual Report of the Parochial Church Council | 1-10 |
| Independent Examiner’s Report | 11 |
| Statement of Financial Ac?vi?es | 12 |
| Balance Sheet | 14 |
| Notes to the Financial Statements | 16-31 |
St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2023
The Annual Report of the Parochial Church Council will be read to the Annual Parochial Church Mee?ng, and copies will be available from the church office
IntroducUon
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 promo?ng in the ecclesias?cal parish the whole mission of the Church – pastoral, evangelis?c, social and ecumenical.
During the year the following served as members of the PCC:
Officers:
Chairman: Christopher Howard Taylor- (To 29th May 2023) Reverend Hannah Gordon #- (From 30th May 2023)
Vice Chair: Eamonn Davern#
Churchwarden: Sarah Anne Bowes# Jennifer Smith#
Secretary: Eamonn Davern#
PCC Members
Andrew James Chris?e Bri]on (Un?l 23rd April 2023) Eamonn Davern Perry George Lee Esparon Jill Lindsay (Deanery Synod, from 23rd April 2023) Rosalind Lundberg (From 23rd April 2023) Madeleine MacCallum Tom Sanderson Ian Thirlwall Rev John Norman Wates Janice Whi]le Kat Wicksteed
Management personnel
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St Margaret’s Church, Chipstead Parish
ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2023 (conUnued)
Key Management Personnel
Key Management Personnel are shown on page 1. Details of the expenses of all members of the PCC (including Key Management Personnel) are shown in note 8 to the accounts.
Other than the Reverend Hannah Gordon, none of the key management received any remunera?on . From 30th May 2023, the Reverend Hannah Gordon was remunerated by the Diocese of Southwark. She received no remunera?on from the PCC.
Advisers
Bankers Natwest Wallington Branch 27 Woodcote Road Wallington Surrey SM6 0LN Independent Examiners Jon Grant Correspondence Address The Parish Office Church Lane Chipstead Surrey CR5 3RD
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St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2023 (conUnued)
Our aims and purposes as a charity
The PCC has the responsibility for co-opera?ng with the incumbent from ?me to ?me (and in the absence of an incumbent co-opera?ng with the churchwardens and the Dean of Reigate) in promo?ng in the ecclesias?cal parish of Chipstead, the Gospel and the whole mission of the church, pastoral, evangelis?c, social and ecumenical. The PCC is specifically responsible for the maintenance of the Church building, the Orchard and the churchyard, the Peter Auber?n 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 objecUves
When planning our ac?vi?es for the year, the PCC considered the Charity Commission’s guidance on public benefit. The PCC has complied with the duty under sec?on 5 of the Safeguarding and Clergy Discipline Measure 2016, fully recognising its duty to have due regard to the House of Bishop’s guidance on safeguarding children and vulnerable adults.
Our aims are:
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To enable as many people as possible to know Christ, worship him and grow in faith within our church and parish.
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To teach, bap?se and nurture new and exis?ng believers.
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To involve and seek to build bridges between the many, ohen varied, groups that live within the parish.
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To put faith into prac?ce, through prayer and scripture, music and sacrament.
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To build upon our worship and prayer and learning about the gospel by mee?ng in small groups.
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To assist people of all ages and from all walks of life to develop their knowledge of, and trust in, Jesus.
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To provide pastoral care for people living in the parish and also for members of the congrega?on who live outside of the parish.
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To support the homeless in the deanery.
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To provide assistance to the poor and needy.
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To assist financially other organisa?ons who promote our mission.
Mission AcUon Plan (MAP)
The MAP from last year remained in place. Progress added in italics:
- To appoint a new Rector. Hannah Gordon was appointed in February 2023 and licensed to the post on 30th May 2023.
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To grow our work with children and families. Messy Church meeDng once a half term. Maggies’s Song for under 5s weekly in term Dme. Junior Church and Youth work conDnue on a Sunday morning.
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To grow our outreach and be more visible in the local community. Community events aIended in Summer 2023. Hannah took Harvest and Christmas services at Mugswell.
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To grow our pastoral care. Pastoral Team established Summer 2023.
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To re-establish our two main services TradiDonal service at 8:45am and more contemporary service at 10:15am started end of September 2023.
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St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2023 (conUnued)
Achievements and performance
On 12th February 2023, Reverend Hannah Gordon, previously Curate at The Good Shepherd, Carshalton Beeches, in the Diocese of Southwark, was appointed Rector for St Margaret, Chipstead. She was ins?tuted and inducted on Tuesday 30th May.
This year has seen a number of people returning to the worshipping community.
Hannah introduced Compline on a Sunday evening in the summer months, followed by fellowship in the White Hart. This was a way of introducing regular prayer into the church building and offering people a way to get to know her in a more informal sejng.
The summer also saw the introduc?on of a said communion service at 8:30am every Sunday, which coincided with the end of pre-recorded communion celebra?ons.
Aher a consulta?on process St. Margaret!s moved into two dis?nct service styles at the end of September. The 8:45 service is more tradi?onal, alterna?ng between morning praise and communion, with hymns sung accompanied by the organ. The 10:15 service is more contemporary and also alternates between communion and morning praise, with worship band. The second Sunday of the month is a service for all ages all together. For fes?vals and 5th Sundays we held one united service at 10 am. This pa]ern will be reviewed in Spring 2024.
In September we celebrated our Harvest Fes?val with a celebra?on in church followed by a really well a]ended lunch in The Orchard. It was good to gather as a whole community to mark the end of one morning service, before moving into two dis?nct service styles. Ea?ng together was joyous and much fun was had.
Groups of children and young people con?nue to be held during morning worship, now at the 10:15 service. There are a small but steady number of children and young people who a]end. Josh Allwith, our youth and community worker, con?nues his weekly secondment to Sparkfish as a mentor in St. Bede!s school. He has run a regular aher school drop in on a Wednesday, which moved from church to Starbucks aher the clocks changed in October. This year also saw the young people go paddle boarding and sailing on Mercer!s lake and swimming at Elmore.
Messy Church has been held once a half term on a Sunday ahernoon between 3pm and 5pm, ending with a meal together. This has seen families a]ending who we do not encounter on a Sunday morning. Each session is based around a theme, and a small but commi]ed group run ac?vi?es and provide catering.
Maggie’s Song con?nues to be our primary outreach to under 5s, run by a volunteer, Elaine. This is well a]ended.
Christmas services were well a]ended. We hosted the Village Carol Service which is held by The Chipstead Singers and a]ended by children from Chipstead Valley Primary School. We held two carol services back to back, as in previous years, with a wonderful choir. Christmas Eve saw a crib service at 4pm and Midnight Communion for a packed church. The celebra?ons concluded with Communion on Christmas Morning at 10am.
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This year saw a good number of occasional offices with eight weddings, two wedding blessings, and nine bap?sms. We also took six funerals.
In the wider parish we a]ended the Chipstead Flower Show, Netherne Fun Day and the Village BBQ, introducing our wacky but popular toilet game, it has to be seen to be understood! These events provided vital opportuni?es to engage with the wider parish and to have conversa?ons with people who may drive past our building but never come through the doors.
Hannah has taken the reins from Andrew Bri]on, who re?red this year, with regards to worship at the Mugswell Mission Hall. This year she led a well a]ended, and lively, Harvest Service in October and a tradi?onal Christmas Carol Service, accompanied by the Chipstead Singers. The atmosphere is lovely, and it is wonderful to take worship to a different part of our parish. Claire Roberts is the new Chair of the Mugswell Commi]ee and is keen to develop our rela?onship.
Six life groups met regularly across the parish, at a variety of ?mes and loca?ons. These provide an opportunity for prayer, fellowship, Bible study and ?me together. Tom and Rachelle Sanderson coordinate these and hold regular mee?ngs for life group leaders. Groups choose their own material and mee?ng pa]erns.
In the summer of 2023 the Pastoral Team was formally created, and held regular mee?ngs to establish its working methods, safeguarding and communica?on. This team is now ac?ve, visi?ng people in the parish, and keeping each other up to date. People can contact the team on a dedicated email address, or via the Rector.
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St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2023 (conUnued)
2023 Financial Review
The church con?nues to enjoy a very strong overall financial posi?on thanks to the substan?al legacies received in recent years, totaling over £910k between 2019 and 2021, and a further dona?on of £150k from a single donor received during 2023. At the end of 2023 we enjoyed a net cash and investment posi?on of £1,038k.
A number of factors resulted in a be]er reported financial result than in the past three years with unrestricted funds growing by £150k. The main factor was the dona?on of £150k and an associated £12.5k of gih aid, but this s?ll leh underlying unrestricted funds in nega?ve territory by around £20k during 2023. This is significantly be]er than previous years where the church had reported a significant and steadily growing underlying deficit, which reached over £92k in 2022. There were a number of reasons behind this.
Firstly, a decision was made by the newly formed finance commi]ee to invest a substan?al por?on of these monies (£500k) in financial assets managed by CCLA (a church financial ins?tu?on) with the aim of improving our long term returns rela?ve to holding cash. This was implemented in early 2023 and at the end of 2023 the gain was £35k, or 7%.
Secondly, we reduced our parish share commitment to the diocese from an annual payment of £120k to £100k in 2023.
Thirdly the interest rates available on those reserves remaining in cash were far higher in 2023 than in previous years, with the result that interest income rose to over £20k for 2023 rela?ve to £5.8k in 2022 despite a reduc?on in our average cash balances.
These three factors alone improved income during 2023 by £70k rela?ve to 2022. Our underlying loss excluding these three items together with the dona?on and associated gih aid was just under £20k. The deficit has been growing since 2016 as a result of a steep decline in planned giving amoun?ng to £92k since 2016. However as in 2022 planned giving, together with the associated gih aid, was flat at just under £150k.
Infla?onary pressures eased somewhat during the la]er stages of 2023 and helped to keep underlying opera?ng costs stable for the year.
Revenue from hire of the PA hall saw a solid increase over 2022 from £12.5k to £15.8k but a loss for the year was reported of £4.8k as major refurbishment work was carried out to the hall floor. This was par?ally funded by a £7.5k grant from Reigate and Banstead Borough Council. .
The financial outlook for 2024 has improved somewhat following the be]er than expected result in 2023. However interest rates are beginning to ease back at present and there are no guarantees regarding the investment performance. In some future years there is a chance that this could be nega?ve.
Our concern is that the church will con?nue to operate at a deficit, albeit reduced from our previous expecta?ons for the foreseeable future.
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At 31 December 2023, total funds amounted to £1,054,590 (2022: £910,406) of which £95,406 (2022: £101,484) were restricted and £132,278 (2022: £132,278) were in the Endowment Fund.
The PCC has designated funds (a minimum of £40k) from the Denise Baker bequest for an upgrade to the video system in the church to improve access to Church services and ac?vi?es. This bequest flowed exclusively from regular pastoral visits by Revd. John Wates and the late Freda Honey.
Statement of PCC responsibiliUes
The Parochial Church Council (PCC) is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accoun?ng Standards (United Kingdom Generally Accepted Accoun?ng Prac?ce).
The Church Accoun?ng Regula?ons 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 ac?vi?es for that period. In preparing those financial statements, the PCC is required to:
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select suitable accoun?ng policies and then apply them consistently;
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observe the methods and principles in the Chari?es SORP;
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make judgments and es?mates that are reasonable and prudent;
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state whether applicable accoun?ng standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will con?nue in business.
The PCC is responsible for keeping proper accoun?ng records which disclose with reasonable accuracy at any ?me the financial posi?on of the Council and enable it to ensure that the financial statements comply with the Chari?es Act 2011, the Charity (Accounts and Reports) Regula?ons 2008. It is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the preven?on and detec?on of fraud and other irregulari?es.
The PCC has taken into account the Charity Commission Guidance on Public Benefit.
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St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2023 (conUnued)
Risk assessment
The PCC is sa?sfied that there are procedures in place to mi?gate exposure to major risks. The PCC considers the principal risks and uncertain?es facing the Church and their plans and strategies for managing these risks to be:
| PotenUal Risk | PotenUal Impact | Steps to miUgate risk |
|---|---|---|
| Security of assets | • loss or damage • theh of assets |
• review security arrangements • asset register and inspec?on programme • review insurance cover |
| Fund-raising | • unsa?sfactory returns • reputa?onal risks of campaign or methods used • ac?ons of agents and commercial fund-raisers • compliance with law and regula?on |
• implement appraisal, budge?ng and authorisa?on procedures • review regulatory compliance • monitor the adequacy of fnancial returns achieved • stewardship repor?ng in annual report |
| Disaster recovery and planning |
• computer system failures or loss of data • destruc?on of property, equipment, records through fre, food or similar damage |
• agree IT recovery plan • implement data backup procedures and security measures • review insurance cover • create disaster recovery plan |
| Cash fow sensi?vi?es | • inability to meet commitments • lack of liquidity to cover variance in costs • impact on opera?onal ac?vi?es |
• ensure adequate cash fow projec?ons (prudence of assump?ons) • iden?fy major sensi?vi?es • ensure adequate informa?on fow from opera?onal managers • monitor arrangements and repor?ng |
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St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2023 (conUnued)
Reserves policy
The PCC needs reserves to cover short term shorralls in income and to cover unexpected expenditure. The vast majority of the PCC's income derives from voluntary dona?ons. Whilst a significant propor?on of these dona?ons are planned, there is a level of unplanned giving which is not always predictable. In addi?on, due to changes in circumstances within the congrega?on, planned giving may not always match the level pledged at the start of the year. Reserves allow the PCC to be]er manage short term fluctua?ons in the level of giving. In addi?on, the running costs of the church are not always predictable and reserves allow the PCC to cope with unexpected expenditure which may arise from ?me to ?me. 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 2023 unrestricted reserves were £826k.
Fundraising
The PCC engaged in fundraising, in the form of receiving dona?ons, some of which were gih-aided, from members of our fellowship. The PCC did not contract the service of any professional fundraisers as defined by sec?on 58 of the Chari?es Act 1992. The PCC is sa?sfied that its fundraising prac?ces are ethical. No complaints were received about our fundraising prac?ces.
Investment policy
The PCC’s appe?te for risk is low to moderate in its investment policy placing surplus cash on deposit with the CBF Church of England Deposit Fund or with large banks. The investment with CCLA is considered to be a low to moderate, but worthwhile, risk.
Hannah Gordon
Chairman Date 21st April 2024
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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 examina?on of the accounts of the St Margaret’s Parochial Church Council (the Church) for the year ended 31 December 2023 set out on pages 10 to 21.
ResponsibiliUes and basis of report
As the charity’s trustees you are responsible for the prepara?on of the accounts in accordance with the requirements of the Chari?es Act 2011 (‘the Act’).
I report in respect of my examina?on of the Trust’s accounts as carried out under sec?on 145 of the Act and in carrying out my examina?on I have followed all the applicable Direc?ons given by the Charity Commission under sec?on 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examina?on. I confirm that no ma]ers have come to my a]en?on in connec?on with the examina?on giving me cause to believe that in any material respect:
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accoun?ng records were not kept in respect of the Church as required by sec?on 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Chari?es (Accounts and Report) Regula?ons 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a ma]er considered as part of an independent examina?on; or
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the accounts have not been prepared in accordance with the methods and principles of Accoun?ng and Repor?ng by Chari?es: Statement of Recommended Prac?ce applicable to chari?es preparing their accounts in accordance with the Financial Repor?ng Standard applicable in the UK and the Republic of Ireland (FRS 102).
I have no concerns and have come across no other ma]ers in connec?on with the examina?on to which a]en?on should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Jon Grant FCCA Date:31st March 2024
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St Margaret’s Church, Chipstead Parish
Statement of Financial AcUviUes for the year ended 31 December 2023
| For the year ended 31 |
2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | |
|---|---|---|---|---|---|---|---|---|---|
| Unrestric ted |
Restricte d |
Endowm ent |
TOTAL | Unrestrict ed |
Restricte d |
Endowm ent |
TOTAL | ||
| Funds | Funds | Funds | 2023 | Funds | Funds | Funds | 2022 | ||
| Notes | 2(a) | 2(b) | 10 | 2(a) | 2(b) | 10 | |||
| INCOME | £ | £ | £ | £ | £ | £ | £ | £ | |
| Voluntary |
325,114 | 1,542 | - | 326,65 |
159,303 | 350 | - | 159,653 | |
| ~~income~~ Income from church ac?vi?es |
16,715 | - | - | ~~6~~ 16,715 |
14,198 | - | - | 14,198 | |
| Ac?vi?es for genera?ng funds |
5,141 | 25,340 | - | 30,481 | 2,635 | 17,221 | - | 19,856 | |
| Income from investments |
22,465 | - | - | 22,465 | 5,814 | - | - | 5,814 | |
| Total Income | 369,435 | 26,882 | - | 396,31 |
181,950 | 17,571 | - | 199,521 | |
| EXPENDITURE | ~~7~~ | ||||||||
| Church ac?vi?es | 253,838 | 30,781 | - | 284,61 |
274,876 | 13,951 | - | 288,827 | |
| Raising funds | 1,010 | 2,179 | - | ~~9~~ 3,189 |
340 | 2,445 | - | 2,785 | |
| - | - | ||||||||
| Total |
254,848 | 32,960 | - | 287,80 |
275,216 | 16,396 | - | 291,612 | |
| ~~Expenditure~~ Excess (defcit) of income over expenditure |
114,587 | (6,078) | ~~8~~ 108,50 9 |
(93,266) | 1,175 | - | (92,091) | ||
| Net gains/ (losses)on |
35,675 | - | - | 35,675 | - | - | - | - | |
| Net Income/ (Expenditure) |
150,262 | (6,078) | - | 144,18 4 |
(93,266) | 1,175 | - | (92,091) | |
| Transfer between funds |
- | - | - | - | - | - | - | - |
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| Total funds brought forward |
676,644 | 101,484 | 132,278 | 910,40 6 |
769,910 | 100,309 | 132,278 | 1,002,49 7 |
|
|---|---|---|---|---|---|---|---|---|---|
| Total funds carried forward |
826,906 | 95,406 | 132,278 | 1,054, 590 |
676,644 | 101,484 | 132,278 | 910,406 |
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St Margaret’s Church, Chipstead Parish Balance sheet as 31 December 2023
| Note s |
2023 | 2022 | |||
|---|---|---|---|---|---|
| £ | £ | ||||
| FIXED ASSETS | |||||
| Tangible assets | 3 | 1,302 | 3,540 | ||
| Investments | 535,675 | - | |||
| Total fxed assets | 536,977 | 3,540 | |||
| CURRENT ASSETS | |||||
| Debtors | 5 | 25,989 | 33,994 | ||
| Cash at bank and in hand | 503,017 | 891,476 | |||
| 529,006 | 925,470 | ||||
| LIABILITIES: AMOUNTS FALLING | |||||
| DUE WITHIN ONE YEAR | 6 | 11,393 | 18,604 | ||
| NET CURRENT ASSETS | 517,613 | 906,866 | |||
| NET ASSETS | 1,054,590 | 910,406 | |||
| PARISH FUNDS | |||||
| Unrestricted | 7 | 826,906 | 676,644 | ||
| Restricted | 7 | 95,406 | 101,484 |
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| Endowment | 7 | 132,278 | 132,278 | ||
|---|---|---|---|---|---|
| 1,054,590 | 910,406 |
The accounts were approved by the PCC on 21st April 2024 and signed on behalf of the PCC by:
Rev’d Hannah Gordon Chairman
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St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023
1. ACCOUNTING POLICIES
The principal accoun?ng policies adopted in the prepara?on of the financial statements are as follows:
Basis of preparaUon
The financial statements have been prepared in accordance with the Church Accoun?ng Regula?ons 2006 and in accordance with the Chari?es Statement of Recommended Prac?ce (Chari?es SORP (FRS 102)) and Financial Repor?ng Standard 102 (FRS 102).The financial statements have been prepared under the historical cost conven?on. The accounts include all transac?ons, assets and liabili?es for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affilia?on to another body nor those that are informal gatherings of Church members. The financial statements are prepared in sterling, which is the func?onal currency of the PCC. Monetary amounts in these financial statements are rounded to the nearest £. The PCC meets the defini?on of a public benefit en?ty under FRS102.
Going concern
The PCC have prepared detailed forecasts which they believe are based upon reasonable assump?ons. 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
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Unrestricted Funds represent the resources of the PCC that are not subject to any restric?ons regarding their use and are available for the general purposes of the PCC.
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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 dona?ons and special events to meet major expenses on repairs and renewals of the Church and the Churchyard.
Trust Funds consist of dona?ons made specifically for the upkeep of certain graves.
The Bell Fund contains specific dona?ons 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 DonaUons consist of dona?ons received at services and other Parish occasions for purposes specified at the ?me of collec?on.
The Appeal Fund contains dona?ons made and the proceeds of special events undertaken for the purposes of funding the construc?on of The Orchard.
The Peter AuberUn Hall Fund consists of income from opera?ng ac?vi?es of the Hall, specific fundraising events and dona?ons for the improvement of the Hall.
The Mugswell Hall Fund consists of income from the opera?ng ac?vi?es of the Hall and specific dona?ons for the maintenance and improvement of the Hall
3 The Endowment Fund represents resources provided to build up a fund to ensure the future financial wellbeing of the Church. The Endowment Fund, a por?on of which was originally donated in the 1970s, was done so with the restric?on that it should not be spent on any ac?vi?es outside of the parish, or rou?ne
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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.
St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023 (conUnued)
1. ACCOUNTING POLICIES (conUnued)
Income recogniUon
All income is recognised once the Church has en?tlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
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Voluntary Income
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Collec?ons at services are recognised when received on behalf of the PCC.
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Planned giving is recognised when received and related Gih Aid is accrued for.
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Funds raised through events are accounted for gross.
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Grants and legacies to the PCC are accounted for as soon as the PCC is no?fied of its legal en?tlement, the amount is quan?fiable and the ul?mate receipt by the PCC is considered probable.
Other Income
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Opera?ng income from other sources such as lejng of church premises, magazine sales/ adver?sing and parochial fees is recognised when due.
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Income from bank and CBF deposits is recognised when received. Income from investments is accumulated within the fund.
Expenditure
- All expenditure is accounted for on an accruals basis.
Fixed Assets
Consecrated Property and Movable Church Furnishings
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Consecrated land/buildings and equipment are not included in the financial statements by virtue of the Chari?es 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 fijngs, is wri]en off as expenditure in the year.
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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 ?me.
Other church buildings
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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.
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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.
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- Deprecia?on is provided at the following rates to write off the cost of fixed assets over their useful lives:
Furniture, fijngs & equipment - Straight line over 3 - 5 years
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St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023 (conUnued)
1. ACCOUNTING POLICIES (conUnued)
Investments
These represent CBF equity investments and are valued at market value at the end of the year
Current assets
Income tax recoverable and other debtors are included at the se]lement amount due. Prepayments are valued at the amount prepaid. Cash at bank and in hand includes cash deposits with a short maturity date.
Creditors and provisions
Creditors and provisions are recognised where the Church has a present obliga?on arising from a past event that will probably result in the transfer of funds to a third party and the amount due to se]le the obliga?on can be measured or es?mated reliably. Creditors and provisions are recognised at their se]lement amount.
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).
19
St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023 (conUnued)
| Note 2a Unrestricted general church funds | 2023 | 2022 | |
|---|---|---|---|
| INCOME | £ | £ | |
| Voluntary income | |||
| Planned Giving | 122,773 | 122,418 | |
| Collec?ons (plate) at services | 2,546 | 3,135 | |
| Income tax recoverable | 39,033 | 25,724 | |
| Grants received | 25 | 2,600 | |
| Dona?ons | 157,000 | 4,926 | |
| Refunds | 3,237 | - | |
| Legacies | 500 | 500 | |
| 325,114 | 159,303 | ||
| Income From Church Ac?vi?es: | |||
| Wedding, Bap?sm and Funeral fees | 16,715 | 14,198 | |
| 16,715 | 14,198 | ||
| Ac?vi?es for genera?ng funds | |||
| Magazine sales | 1,500 | 1,816 | |
| Magazine adver?sing | 1,155 | 460 | |
| Fetes and other fundraising events | 2,111 | - | |
| Orchard hire | 375 | 359 | |
| 5,141 | 2,635 | ||
| Interest income | 22,465 | 5,814 | |
| TOTAL INCOME | 369,435 | 181,950 | |
| EXPENDITURE | |||
| Church Ac?vi?es | |||
| Parish Share | 100,000 | 120,000 |
20
| Clergy expenses | 343 | - | |
|---|---|---|---|
| Church building maintenance | 6,539 | 5,646 | |
| Churchyard maintenance | 997 | 1,486 | |
| Youth, children, music and hospitality | 37,615 | 39,673 | |
| Church running expenses | 50,190 | 51,064 | |
| Organ costs | - | - | |
| General & secretarial expenses | 32,963 | 32,535 | |
| Prin?ng and sta?onery | 7,661 | 7,547 | |
| Deprecia?on | 4,191 | 4,654 | |
| 240,499 | 262,605 | ||
| Grants | |||
| Overseas mission socie?es | 5,456 | 10,156 | |
| Chris?an relief & development agencies | 500 | 500 | |
| Home mission & other church socie?es | 7,389 | 1,615 | |
| 13,339 | 12,271 |
21 -
St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023 (conUnued) Note 2a Unrestricted general church funds (conUnued)
| ote 2a Unrestricted general church funds | (conUnued) | ||||||
|---|---|---|---|---|---|---|---|
| Fund raising costs | 1,010 | 340 | |||||
| TOTAL EXPENDITURE | 254,848 | 275,216 | |||||
| Restricted Funds - Summary | |||||||
| Income (£) | Expenditure (£) | As at 31st Dec 2023 (£) |
As at 31st Dec 2022 (£) |
||||
| Trust Funds | - | - | 367 | 367 | |||
| Bell Fund | - | - | 28,576 | 28,576 | |||
| Specifc dona?ons | 793 | 2,179 | 168 | 1,554 | |||
| Appeal Fund | 100 | - | 7,103 | 7,003 | |||
| PA Hall Fund | 23,328 | 28,155 | (2,968) | 1,859 | |||
| Mugswell Hall | 2,661 | 2,626 | 2,170 | 2,135 | |||
| Fabric fund | - | - | 59,988 | 59,988 | |||
| 26,882 | 32,960 | 95,406 | 101,484 |
Note: Totals may not add due to rounding
| Note 2 (b) Restricted Funds - detail | |||
|---|---|---|---|
| Trust Funds | 2023 | 2022 | |
| £ | £ | ||
| Income | |||
| Dividends & Interest | - | - | |
| Expenditure | |||
| Flowers & upkeep of graves | - | - | |
| Net Income | - | - | |
| Balance at 1 January | 367 | 367 | |
| Balance at 31 December | 367 | 367 | |
22
| Bell Fund | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| Income | |||
| Interest | - | - | |
| Surplus from weddings | - | - | |
| Net income | - | - | |
| Transfers | - | - | |
| Balance at 1 January | 28,576 | 28,576 | |
| Balance at 31 December | 28,576 | 28,576 | |
| Specifc DonaUons | 2023 | 2022 | |
| £ | £ | ||
| Income | |||
| Collec?ons | 683 | - | |
| Dona?ons etc | 100 | 100 | |
| Events | - | - | |
| 793 | 100 | ||
| Expenditure | |||
| Overseas mission socie?es | |||
| Chris?an relief & development agencies | 2,179 | ||
| Total Grants | 2,179 |
23 -
St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2022 (conUnued)
Note 2 (b) Restricted Funds (conUnued)
| ote 2 (b) Restricted Funds (conUnued) | |||
|---|---|---|---|
| Net Income | (1,386) | 100 | |
| Balance at 1 January | 1,554 | 1,454 | |
| Balance at 31 December | 168 | 1,554 |
| 2023 | 2022 | ||
|---|---|---|---|
| Appeal Fund | £ | £ | |
| Income | 100 | 100 | |
| Expenditure | |||
| Grants to home mission & other church socie?es | - | - | |
| Costs of Fundraising | - | - | |
| Equipment purchases | - | - | |
| - | - | ||
| Net Income/(expenditure) | 100 | 100 | |
| Balance at 1 January | 7,003 | 6,903 | |
| Balance at 31 December | 7,103 | 7,003 | |
| Peter AuberUn Hall | 2023 | 2022 | |
| Income | £ | £ | |
| Opera?ng ac?vi?es to generate funds | 12 | 250 | |
| Grants received | 7,494 | ||
| Church hall lejngs | 15,822 | 12,535 | |
| 23,328 | 12,785 | ||
| Dividends & interest | - | - | |
| Other Income | - | - | |
| 23,328 | 12,785 |
24 -
| Expenditure | |||
|---|---|---|---|
| Church hall running costs | 13,053 | 8,874 | |
| Church hall building maintenance | 15,102 | 3,056 | |
| Administra?on of Hall Bookings | - | ||
| 28,155 | 11,930 | ||
| Net Income | (4,827) | 855 | |
| Transfers | - | ||
| Balance at 1 January | 1,859 | 1,004 | |
| Balance at 31 December | (2,968) | 1,859 | |
25 -
St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023 (conUnued)
Note 2(b) Restricted funds (conUnued)
| ote 2(b) Restricted funds (conUnued) | |||
|---|---|---|---|
| Mugswell Hall | 2023 | 2022 | |
| £ | £ | ||
| Income | |||
| Dona?ons | 649 | - | |
| Church hall lejngs | 2,012 | 2,240 | |
| 2,661 | 427 | ||
| Expenditure | |||
| Church hall running costs | 2,249 | 1,646 | |
| Church hall building maintenance | 377 | 375 | |
| 2,626 | 2,021 | ||
| Net Income | 35 | 219 | |
| Balance at 1 January | 2,135 | 1,916 | |
| Balance at 31 December | 2,170 | 2,135 |
| 2023 | 2022 | ||
|---|---|---|---|
| Fabric Fund | £ | £ | |
| Income | |||
| Bequest | |||
| Expenditure | |||
| Net Income | - | - | |
| Balance at 1 January | 59,988 | 59,988 | |
| Balance at 31 December | 59,988 | 59,988 |
26 -
St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023 (conUnued)
| 3: Fixed assets for use by the PCC | 3: Fixed assets for use by the PCC | 3: Fixed assets for use by the PCC |
|---|---|---|
| Furniture, fjngs and equipment |
||
| Cost | At 1 January 2023 | 22,218 |
| Addi?ons at cost | 1,953 | |
| At 31 December 2023 | 24,171 | |
| Deprecia?on | At 1 January 2023 | 18,678 |
| Charge for the year | 4,191 | |
| At 31 December 2023 | 22,869 | |
| Net book value | At 31 December 2023 | 1,302 |
| At 31 December 2022 | 3,540 |
| 4: Staf Costs | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| Wages and salaries | 45,033 | 57,954 | |
| Social security costs | 664 | 1,121 | |
| Employers Pension costs | 1,412 | 2,196 | |
| Total | 47,109 | 61,271 | |
| Average number of employees | 2 | 2 |
Throughout the year the PCC employed a finance assistant and a youth worker, none of whom earned £60,000 pa or more. None of the employees were members of the PCC during 2023. There were no employee benefits to key management personnel in the previous or current year.
| 5 Debtors | 2023 | 2022 | |
|---|---|---|---|
| Due within one year | £ | £ | |
| Income Tax recoverable | 17,947 | 25,975 |
27
| Prepayments | 5,906 | 6,234 | |
|---|---|---|---|
| Other Debtors | 2,137 | 1,785 | |
| Total debtors | 25,989 | 33,994 | |
| 6 LiabiliUes | 2023 | 2022 | |
| Amount falling due within one year | £ | £ | |
| Deferred Income | 625 | 670 | |
| Accruals | 10,768 | 17,934 | |
| Total liabili?es | 11,393 | 18,604 |
28 -
St Margaret’s Church, Chipstead Parish
Notes to the Financial Statements for the year ended 31st December 2023 (conUnued)
| 7 Analysis of Net Assets by Fund | ||||
|---|---|---|---|---|
| 2023 | ||||
| Current | Fixed assets | Current | Fund | |
| Assets | Liabili?es | Balance | ||
| £ | £ | £ | £ | |
| Unrestricted Funds | 833,129 | 1,302 | (7,525) | 826,906 |
| Fabric Fund | 59,988 | 59,988 | ||
| Trust Funds | 367 | 367 | ||
| Bell Fund | 28,576 | 28,576 | ||
| Appeal Fund | 7,103 | 7,103 | ||
| Specifc Dona?ons | 168 | 168 | ||
| PA Hall | 900 | (3,868) | (2,968) | |
| Mugswell Hall | 2,170 | 2,170 | ||
| Endowment Fund | 132,278 | 132,278 | ||
| Total Funds | 1,064,681 | 1,302 | (11,393) | 1,054,590 |
| 2022 | ||||
| Current | Fixed assets | Current | Fund | |
| Assets | Liabili?es | Balance | ||
| £ | £ | £ | £ | |
| Unrestricted Funds | 691,708 | 3,540 | (14,794) | 676,644 |
| Fabric Fund | 59,988 | 59,988 | ||
| Trust Funds | 367 | 367 | ||
| Bell Fund | 28,576 | 28,576 |
29 -
| Appeal Fund | 7,003 | 7,003 | ||
|---|---|---|---|---|
| Specifc Dona?ons | 1,554 | 1,554 | ||
| PA Hall | 5,669 | (3,810) | 1,859 | |
| Mugswell Hall | 2,134 | 2,134 | ||
| Endowment Fund | 132,278 | 132,278 | ||
| Total Funds | 925,467 | 3,540 | (18,604) | 910,406 |
30 -
St Margaret’s Church, Chipstead Parish Notes to the Financial Statements for the year ended 31st December 2023 (conUnued)
8. Related party transac?ons
During the year there were no related party transac?ons
9. Lease Commitments
The total future minimum lease payments under non-cancellable opera?ng leases are payable:
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Within 1 year | 1,430 | 1,430 | |
| Within 2 to 5 years | - | 1,430 | |
| 1,430 | 2,860 | ||
| Lease payments during the year | 1,430 | 1,430 |
10. Endowment fund
The Endowment Fund, a por?on of which was originally donated in the 1970s, was done with the restric?on that it should not be spent on any ac?vi?es outside of the parish, or on rou?ne 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 the past five years.
31