## **St Margaret’s Church, Chipstead Parish**
## **Annual Report and Accounts**
## **RECEIPTS AND PAYMENTS BASIS PENDING INFORMATION**
**The Parochial Church Council of the Ecclesiastical Parish Church of St Margaret’s Church Chipstead**
**for the year ended 31 December 2025**
## INCLUDEPICTURE
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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 December 2025**
|**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|12-18|
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## **St Margaret’s Church, Chipstead Parish ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
The Annual Report of the Parochial Church Council will be read to the Annual Parochial Church 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.
During the year the following served as members of the PCC:
## **Officers:**
## **Chair:**
Reverend Hannah Gordon
## **Churchwardens:**
Jennifer Smith Tom Sanderson
**Secretary:** Eamonn Davern
## **PCC Members**
Jon Hill Ray King Jill Lindsay Rosalind Lunberg Lorna Madeleine MacCallum Nigel Smith Julia Thompson Lucy Wales Katherine Wicksteed Janice Whittle
## **Key Management Personnel**
The Chair and the Churchwardens are management personnel. None of the key management received any remuneration.
Details of the expenses of all members of the PCC (including Key Management Personnel) are shown in note 8 to the financial statements.
## **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 2025 (continued)**
## **Bankers**
Natwest Wallington Branch 27 Woodcote Road Wallington Surrey SM6 0LN
**Independent Examiners:** Stewardship
2 -
## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
## **Our Aims and Purposes as a Charity**
## **Purpose**
St Margaret’s exists so that everyone knows they are loved by God. We are a community of shelter and safety for all people, recognising that every person is created perfectly in the image of God. Our calling is to live out the radical love of Jesus at every stage of life and faith.
## **Values**
Our work and life together are guided by the following values:
- We point to God.
- We welcome all.
- We include all.
- We enable hope.
## **Vision**
By 2031, everyone at St Margaret’s, at every stage of life, will know that they belong and be able to express how and why they are an integral part of the community.
## **Strategy**
To realise this vision we will:
- Encourage people to live lives of faith wholeheartedly.
- Raise up leaders across all areas of church life.
- Develop the God-given gifts present in every person.
- Grow a strong sense of community belonging both within and beyond the church.
- Nurture multiple expressions of authentic Christian discipleship
## **Action Planning**
The Purpose, Values and Vision were formally launched at the end of 2025. Action-planning sessions were held in January 2026 to begin developing a detailed implementation plan.
## **Achievements and Performance**
## **Developing Purpose, Values and Vision**
During 2025 the church focused on developing its Purpose, Values and Vision. This process began in February with an **away day** at Wychcroft attended by approximately 40 adults and six young people. The day provided an opportunity to reflect on the kind of community St Margaret’s seeks to be and the nature of the disciples we hope to nurture. Worship and prayer framed the day.
Participants engaged in a facilitated **Lego Serious Play** exercise to explore ideas for the future of the church. Working in small groups, participants used Lego models to express their
3 -
## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
perspectives and aspirations for St Margaret’s. These individual ideas were developed into shared group models representing the character and priorities of the church community. Each group recorded reflections and presented their model and conclusions to the wider gathering.
Following the event, the Rector worked with a professional facilitator to analyse the material gathered, together with further reflection, experience and prayer. This process resulted in a draft statement of Purpose, Values and Vision for St Margaret’s. The draft was reviewed by a representative group of around ten individuals from across the congregation before being finalised.
The final version was launched in autumn 2025 and explored through a seven-week sermon series that examined each element in detail and connected it with biblical teaching. The resulting framework is grounded in consultation, prayer and scripture. Implementing the vision through practical action will be a key focus for the coming year.
## **Faith Outside the Pews Project**
Another significant initiative during the year was the **Faith Outside the Pews** project, which culminated in a weekend of activities during midsummer.
Around twenty volunteers gathered at Welcare Redhill on the Saturday afternoon to plant, paint and prepare the outdoor space for community use. In total, 41 members of the church family participated in the project, ranging in age from four years old to members in their eighties. Eleven young people contributed their time and skills in a variety of ways.
The outdoor area at Welcare was transformed from a tired space into one that is colourful, welcoming and hopeful. The Manager at Welcare joined the church community that evening and shared how she had seen God at work through the generosity and service of St Margaret’s volunteers.
The evening continued with a bring-and-share supper attended by more than 70 people. The warm weather allowed full use of the Orchard’s outdoor space, providing a valuable opportunity for fellowship and community building. As the sun set, the congregation gathered around a campfire for worship and scripture before concluding the evening with the ancient monastic office of Compline in the chancel by candlelight.
On Sunday the church held three services: a Book of Common Prayer Eucharist, an informal service, and Messy Church. The weekend provided an opportunity for worship, service and fellowship while supporting one of the church’s mission partners.
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## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
**Other Activities and Events**
Other notable developments during the year included:
- Installation of a long-planned **audio-visual system** .
- Easter services, including a Good Friday “ **Hour at the Cross** ”.
- Celebration of the **patronal festival** , including a question-and-answer session with the **MP** for Reigate and Banstead.
- Participation in the Chipstead Village **Flower Show** , assisting with the tea tent.
- Harvest services held both at the parish church and at **Mugswell Mission Hall** .
- The annual **Living with Loss** service for All Souls’ Day, which continues to be well attended.
- Christmas celebrations included two **carol services** , a traditional nativity service featuring a real baby, and Holy Communion services at midnight and on Christmas morning.
## **Partnership with St Peter’s Woodmansterne**
The church continues to strengthen its relationship with the neighbouring parish of St Peter’s Woodmansterne. Joint activities have included shared services at the beginning and end of Lent, coordinated communication around major festivals, and the launch in September 2025 of a joint half-termly Messy Church held at the PA Hall. Attendance at this initiative has more than tripled.
## **Ongoing Community Activities**
Several regular activities continue to flourish, including:
- **CAMEO** gatherings in Hooley
- A monthly **bereavement café** held in The Orchard
- Community “ **Crafternoons** ”
- Volunteer **cleaning** mornings and regular **gardening**
## **Staff and volunteers**
During the year the PCC employed two staff: a full-time Administrator and Finance Assistant and a part-time Youth and Community Worker. In addition, the PCC is grateful for the Music coordinator, and the commitment of volunteers who support the life and ministry of the church. During 2025 it is estimated that volunteers contributed approximately **1,590 hours** (2024: 1,590 hours) across a wide range of church activities and services.
## **Church Data**
The introduction of **ChurchSuite** during 2025 has improved the accuracy of data collection and improved data handling and communication.
During 2025 the five-yearly revision of the **electoral roll** was also completed, ensuring that membership data is current and accurate. The roll stands at 130 in 2025 compared to 128 in 2024
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## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
## **Outputs, outcomes and impact**
## **Outputs**
Regular activities of the church include:
- Two Sunday services at 9:00am and 10:15am
- A midweek Eucharist on Wednesdays attended by around ten people, followed by fellowship
- Morning Prayer in church on Tuesdays
- Half-termly Messy Church attended by around 50 people
- A weekly newsletter distributed via ChurchSuite to approximately 100 recipients
- Weekly rehearsal for the worship band
- Monthly bell-ringing practice, with ringing for Sunday services, festivals and weddings
- A volunteer-led monthly walking group
- Six Life Groups meeting at various times throughout the week
The **PA Hall** continues to serve the wider community through private hire and regular use by local organisations including the Women’s Institute, Rainbows, Brownies, an art group, Pilates and dance classes.
## **Outcomes**
During 2025 the church conducted:
- 7 baptisms
- 4 weddings
- 5 funerals
Average weekly attendance (based on October 2025) was 74 adults and 10 children under 16.
Attendance has remained stable, with new members joining from a range of backgrounds and integrating well into the church community. Three individuals either began or completed the **Bishop’s Certificate** course **Growing in Faith and Life** .
## **Impact**
This is the Rector’s third year as Incumbent, and the launch of the church’s Purpose, Values and Vision marks an important stage in the ongoing development of St Margaret’s.
The process has intentionally been undertaken gradually and thoughtfully to ensure that it represents a genuine re-missioning of the church rather than simply a new strategic statement. The engagement of the congregation in shaping this vision has already strengthened a shared sense of direction and identity.
The vision – that everyone connected with St Margaret’s knows they belong and understands their place within the community goes well beyond numerical indicators. As a church, the aim is not simply organisational growth but the development of a faithful community in which people encounter God, deepen their discipleship, and serve others. St Margaret’s has made evident progress in this journey during 2025, for which we give thanks to God
6 -
## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
## **2025 Financial Review**
## **Basis of preparation**
The financial statements are presented to PCC 24 March 2024 on a Receipts and Payments basis pending completion of all entries to the Paxton book-keeping system up to 31 December 2025, and pending receipt of information regarding certain transactions during the year. When these matters are settled, the accounts will be prepared under an Accruals basis. The difference between the results on a Receipts and Payments basis and an Accruals basis is generally not material except for the following matters:
1. When the Accruals basis is used an accrual will be made for £100,000 return of donation. This will be recorded as an Exceptional Item and will increase both the payables and the deficit for the year by £100,000
2. When the Accruals basis is used the new Sound System will be recorded at £49,771 which includes a deposit of £21,121 paid during year end 31 December in 2024 and included in receivables at the previous year end. The new Sound System is currently shown as £28,650 which is the amount paid during 2025. This adjustment will increase the deficit for the year by £21,121
3. The Legacy income is currently recorded as £8,891 which is the sum received during the year. When the Accruals basis is used the legacy will be recorded as £1,891 after removing £7,000 that was treated as a receivable at the previous year end. This adjustment will increase the deficit for the year by £7,000.
4. Gift Aid is currently recorded as £20,275. When the Accruals basis is used this will increase to £24,841. The increase of £4,566 represents the Gift Aid reclaimed in relation to the last two months of 2025 and received in 2026. The £4,566 will be reduce the deficit for the year and will be shown as a receivable. An amount of £22,098 was received in 2025 relating to 2024. This has been shown as a deduction from reserves.
In summary the restatement of the results for the year on an Accruals basis will increase the deficit by £123,555 (£100,000 + £21,121 + £7,000 - £4,566 transition to accrual account). There maybe other impacts but these are not expected to materially affect the deficit.
The analysis of expenditure contained an error in 2024. The general and secretarial category was understated by £8,447 and the Youth and children overstated by the same amount. This has been corrected in the comparative figures to £47,322 and £30,270 respectively
There may be an additional statement concerning the financial review when the information regarding certain transactions referred to above is received.
Potential additional content:
7
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## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
## **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. 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.
Potential additional content
During the year the PCC has updated and approved the following policies designed to strengthen internal controls at the Church. Training Support Policy Expense Policy Fees Policy Premises and Procurement Policy Financial Safeguarding Framework
8 -
## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025**
## **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|
9 -
## **St Margaret’s Church, Chipstead Parish**
## **ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2025 (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 £xx. At the end of 2025 unrestricted reserves were £xxx.
## **Fundraising**
The PCC engaged in fundraising, in the form of receiving donations, some of which were giftaided, 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.
Chair Date 24 March 2026
10 -
## **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 2024 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.
Name & Qualification Date:
11 -
## **St Margaret’s Church, Chipstead Parish**
## **Statement of Financial Activities for the year ended 31 December 2025**
||**2025 R&P Basis**|**2025 R&P Basis**|**2025 R&P Basis**|**2025 R&P Basis**||**2024 Accruals basis**|**2024 Accruals basis**|**2024 Accruals basis**||
|---|---|---|---|---|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Endowment**|**TOTAL**||**Unrestricted**|**Restricted**|**Endowment**|**TOTAL**|
||**Funds**|**Funds**|**Funds**|**2025**||**Funds**|**Funds**|**Funds**|**2024**|
|Notes|**2(a)**|**2(b)**|**10**|||**2(a)**|**2(b)**|**10**||
|**INCOME**|**£**|**£**|**£**|**£**||**£**|**£**|**£**|**£**|
|Voluntary income [2a]|152,449|
772|
-|
153,221||149,690|
1,339|
-|
151,029|
|Income from church
activities|10,758|
-|
-|
10,758||16,180|
-|
-|
16,180|
|Activities for
generating funds|555|
19,202|
-|
19,757||1,619|
25,288|
-|
26,907|
|Income from
investments|13,894|
-|
-|
13,894||17,399|
-|
-|
17,399|
|||||||||||
|**Total Income**|177,656|
19,974|
-|
197,630||184,888|
26,627|
-|
211,515|
|||||||||||
|**EXPENDITURE**||||||||||
|Church activities|291,181|
14,478|
-|
305,659||268,458|
21,318|
-|
289,776|
|Raising funds|-||-|||100|
305|
-|
405|
|||||||||-||
|**Total Expenditure**|291,181|
14,478|
-|
305,659||268,558|
21,623|
-|
290,181|
|Excess (deficit) of
income over
expenditure|(113,525)|
5,496|
-|
(108,029)||(83,670)|
5,004|
-|
(78,666)|
|Net gains/(losses) on
investments|(6,572)|
-|
-|
(6,572)||27,346|
-|
-|
27,346|
|**Net**
**Income/(Expenditure)**|(120,097)|
5,496|
-|
(114,601)||(56,324)|
5,004|
-|
(51,320)|
|**Exceptional item**|*||-|||||||
|**Extraordinary item**|**||-|||||||
|Total funds brought
forward|770,582|
100,410|
132,278|1,003,270||826,906|
95,406|
132,278|
1,054,590|
|||||||||||
|**Total funds carried**
**forward**|650,485|
105,906|
132,278|
888,669||770,582|
100,410|
132,278|
1,003,270|
1
12 -
## **St Margaret’s Church, Chipstead Parish Balance sheet as 31 December 2025**
||**Notes**||**2025**
**R&P Basis**||**2024**
**Accruals Basis**|
|---|---|---|---|---|---|
||||**£**||**£**|
|**FIXED ASSETS**||||||
|Tangible assets|3||651||651|
|Investments|||556,449||563,021|
|**Total fixed assets**|||**557,100**||**563,672**|
|||||||
|**CURRENT ASSETS**||||||
|Receivables|5|* 62,428||62,428||
|Cash at bank and in hand||317,138|
379,566|
398,178|
**460,606**|
|**TOTAL ASSETS**|||**936,666**||**1,024,278**|
|||||||
|**LIABILITIES:**||||||
|**Payables: amounts falling due within one**
**year**|6||* (21,008)||(21,008)|
|||||||
|**NET ASSETS**|||**915,658**||**1,003,270**|
|||||||
|||||||
|**PARISH FUNDS**||||||
|2024 Gift aid received 2025 not in SOFA|||22,098|||
|Unrestricted|7||650,485||770,582|
|Restricted|7||105,906||100,410|
|Endowment|7||132,278||132,278|
|**Total funds**|||**910,767**||**1,003,270**|
|Diff 2025 caused by unmatched contras|||(920)|||
|Difference from 2024 [1,519+1182+3,110]|||5,811|||
||||**915,658**||**1,003,270**|
* All receivables & payables are b/f from 2024 pending accounts restated on an Accruals basis
The financial statements were approved by the PCC on 24 March 2026 and signed on behalf of the PCC by:
Chair
13
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## **St Margaret’s Church, Chipstead Parish**
## **Notes to the Financial Statements for the year ended 31 December 2025**
## **1. ACCOUNTING POLICIES**
The principal accounting policies adopted in the preparation of the financial statements are as follows:
## **Basis of preparation**
## **The financial statements for the year ending 2025 are currently prepared on a Receipts and Payments basis. The accounts will be restated on an Accruals basis when required information becomes available.**
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 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.
**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.
**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 Appeal Fund** contains donations made and the proceeds of special events undertaken for the purposes of funding the construction of The Orchard. **Specific Donations** consist of donations received at services and other Parish occasions for purposes specified at the time of collection.
**Trust Funds** consist of donations made specifically for the upkeep of certain graves.
14 -
## **St Margaret’s Church, Chipstead Parish**
- **Notes to the Financial Statements for the year ended 31 December 2025 1. ACCOUNTING POLICIES (continued)**
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 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.
## **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. 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. _Currently R&P BASIS 2025_
- 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. _Currently R&P BASIS 2025_
- ● 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. _Currently R&P BASIS 2025_
## **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 decision is 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.
15 -
## **St Margaret’s Church, Chipstead Parish**
## **Notes to the Financial Statements for the year ended 31 December 2025 (continued) 1. ACCOUNTING POLICIES (continued)**
- 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 the Church.
Depreciation is provided to write off the cost of fixed assets over their useful lives. Furniture, fittings & equipment are depreciated on a straight-line basis over 3 - 5 years.
## **Investments**
These represent equity holdings in the CBF Church of England Investment Fund managed by CCLA investment Management Limited. 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 settlement amount due. Prepayments are valued at the amount prepaid. Cash at bank and in hand includes cash deposits with a short maturity date.
## **Payables and accruals**
Payables and accruals 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. Payables and accruals are recognised at their settlement 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).
16 -
## **St Margaret’s Church, Chipstead Parish**
## **Notes to the Financial Statements for the year ended 31 December 2025 (continued)**
|**Note 2a Unrestricted general church funds**||**2025**
**R&P Basis**|**2024**
**Accruals Basis**|
|---|---|---|---|
|**INCOME**||**£**|**£**|
|**Voluntary income**||||
|Planned Giving||116,522|
114,222|
|Collections (plate) at services||3,034|
1,998|
|Income tax recoverable: Gift Aid. +22,098 shown in reserves||20,275|
23,400|
|VAT refund on listed building/ Grants received||675|
25|
|Donations||3,052|
5,045|
|Legacies [£7,000 of this was a receivable in 2024)||8,891|
5,000|
|||152,449|
**149,690**|
|**Income From Church Activities:**||||
|Wedding, Baptism and Funeral fees||10,646|
16,180|
|Fees for record search certification services||112||
|||10,758|
**16,180**|
|**Activities for generating funds**||||
|Fetes and other fundraising events||510|
1,139|
|Orchard hire||45|
480|
|||555|
**1,619**|
|Interest income||13,894|
**17,399**|
|**TOTAL INCOME**||**177,656**|
**184,888**|
|||||
|**Note 2a Unrestricted general church funds (Continued)**||**2025**|**2024**|
|**EXPENDITURE**||||
|**Church Activities**||||
|Parish Share||103,500|
100,000|
|Clergy expenses||tbc|
945|
|Church building maintenance||3,611|
20,360|
|Churchyard maintenance||3,406|
2,198|
|Youth, children, music, hospitality [2024 error s/b: (8,447)]||36,645|
*30,270|
|Church running expenses (Hospitality £4,549 (2024 £3,466)||46,220|
48,488|
|General & secretarial expenses [2024 error s/b: +8,447]||49,821|
*47,322|
|Printing and stationery||2,360|
4,615|
|Depreciation||-|
651|
|New sound system [total spend is + 21,121 in debtors 2024]||28,650|
-|
|||274,213|
**254,849**|
|**Grants made**||||
|Overseas mission societies|||7,822|
|Christian relief & development agencies|||500|
17 -
|Home mission & other church societies|Home mission & other church societies|||5,287|
|---|---|---|---|---|
|Total spend **includes £2,000 accrual 2024|||**16,968|
**13,609**|
|**Fund raising costs**|||-|
**100**|
|**TOTAL ORDINARY EXPENDITURE**|||291,181|
268,848|
|**EXCEPTIONAL ITEM**||||-|
|**EXTRAORDINARY ITEM**|||||
|**TOTAL EXPENDITURE**||**291,181**||
**268,848**|
## **Note 2(b) Restricted Funds**
|**Note 2(b) Restricted Funds**||||||||
|---|---|---|---|---|---|---|---|
|**Restricted Funds - Summary**||||||||
||**Income (£)**|**Expenditure**
**(£)**||**31 December 2025**
**(£)**||**31 December 2024**
**(£)**||
|Fabric Fund|-|
-||
59,988||
59,988||
|Bell Fund|-|
-||
28,576||
28,576||
|PA Hall Fund|16,727|
12,512||
4,771||
556||
|Mugswell Hall Fund|2,696|
1,966||
3,750||
3,020||
|Appeal Fund|-|
-||
7,175||
7,175||
|Specific donations|551|
-||
1,277||
726||
|Trust Funds||-||
367||
367||
||**19,974**|
**14,478**||
**105,904**||
**100,408**||
|||||||||
|2(b) 1**Note 2(b) Restricted funds continued**|||||**2025**||**2024**|
|**Fabric Fund**|||||**£**||**£**|
|||||||||
|**Income**|||||-||-|
|**Expenditure**|||||-||-|
|**Net Income**|||||**-**||**-**|
|Balance at 1 January|||||59,988||59,988|
|**Balance at 31 December**|||||**59,988**||**59,988**|
|2(b) 2||**2025**|**2024**|
|---|---|---|---|
|**Bell Fund**||**£**|**£**|
|||||
|**Income**||-|
-|
|**Expenditure**||-|
-|
|**Net income**||**-**|
**-**|
|Balance at 1 January||28,576|
28,576|
|**Balance at 31 December**||**28,576**|
**28,576**|
|||||
18 -
**St Margaret’s Church, Chipstead Parish Notes to the Financial Statements for the year ended 31 December 2025 (continued)**
|2(b) 3**Note 2 (b) Restricted Funds (continued)**||**2025**|**2024**|
|---|---|---|---|
|**Peter Aubertin Hall**||**£**|**£**|
|**Income**||||
|Operating activities to generate funds||-|
3,000|
|Church hall lettings||16,027|
19,180|
|Deposits received to be returned 4,175-3,475 2024 credit||700|
-|
|**Total income**||16,727|
22,180|
|**Expenditure**||||
|Church hall running costs (11,642+708-810)||11,540|
15,510|
|Church hall building maintenance||869|
3,146|
|**Total expenditure**||**12,511**|
**(18,656)**|
|**Net Income**||**4,216**|
**3,524**|
|Balance at 1 January||556|
(2,968)|
|**Balance at 31 December**||**4,772**|
**556**|
|||||
|2(b) 4||**2025**|**2024**|
|**Mugswell Hall**||**£**|**£**|
|**Income**||||
|Fundraising||158|-|
|Donations||63|376|
|Church hall lettings||2,475|3,108|
|||2,696|**3,484**|
|**Expenditure**||||
|Church hall running costs||1,489|1,523|
|Church hall building maintenance||477|1,111|
|||1,966|**2,634**|
|**Net Income**||**730**|**850**|
|Balance at 1 January||3,020|2,170|
|**Balance at 31 December**||**3,750**|**3,020**|
19 -
|2(b) 5||**2025**|**2024**|
|---|---|---|---|
|**Appeal Fund**||**£**|**£**|
|**Income**||-|100|
|**Expenditure**||||
|Equipment purchases||-|(28)|
|**Net Income/(expenditure)**||**-**|**72**|
|Balance at 1 January||7,175|7,103|
|**Balance at 31 December**||**7,175**|**7,175**|
|||||
|2(b) 6||**2025**|**2024**|
|**Specific Donations**||**£**|**£**|
|**Income**||||
|Collections||551|
763|
|Donations||-|
100|
|||551|
863|
|**Expenditure**||||
|Grants: Christian relief & development agencies||-|
(305)|
|**Net Income**||551|
558|
|Balance at 1 January||726|
168|
|**Balance at 31 December**||**1,277**|
**726**|
|||||
|2(b) 7||||
|**Trust Funds**||**2025**|**2024**|
|||**£**|**£**|
|**Income**||-|
-|
|**Expenditure**||-|
-|
|**Net Income**||**-**|
**-**|
|Balance at 1 January||367|
367|
|**Balance at 31 December**||863|
367|
## **2(b) 8. 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 has been no expenditure charged against the fund in the past seven years.
20
-
## **St Margaret’s Church, Chipstead Parish**
## **Notes to the Financial Statements for the year ended 31 December 2025 (continued)**
## **3: Fixed assets for use by the PCC**
|**3: Fixed assets for use by the PCC**|||||
|---|---|---|---|---|
||Cost
2025
£|Accumulated
Depreciation
2025
£|Carrying
value
2025
£|Carrying
value
2024
£|
|**Equipment: laptops**|||||
|Balance at 1 January|24,171|(23,520)|651|1,302|
|Additions at cost|-|-|-|-|
|Depreciation charge for the year||-||-|
|Balance at 31 December|24,171|||651|
A new audio-visual system was commissioned in 2025. A deposit of £21,121 was paid during 2024 and the balance of £28,650 was paid in January 2025. The cost has not been capitalised in accordance with the accounting policy.
|**4: Staff Costs**||**2025**
**R&P basis**|**2024**
**Accruals basis**|
|---|---|---|---|
|||**£**|**£**|
|Wages and salaries (gross of tax)||64,679|56,652|
|Employers NIC||1,325|638|
|Employers Pension costs||1,612|1,412|
|**Total**||**67,616**|**58,703**|
|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 2025. There were no employee benefits to key management personnel in the previous or current year. The Church benefitted from Employers Allowance for its NIC contributions. This reduced employment costs by £6,408 during the year (2024: £5,000). Employers Allowance increased from £5,000 to £10,000 from 01 April 2025.
|**5 Receivables**||**2025**|**2024**|
|---|---|---|---|
|**Due within one year**||**£**|**£**|
|Income Tax recoverable: Gift Aid|||24,457|
|Prepayments|||34,187|
|Other receivables|||3,784|
|**Total 2024 cf to 2025 for the purpose of R&P draft accounts**||62,428|
**62,428**|
|||||
|**6 Liabilities**||**2025**|**2024**|
|**Amount falling due within one year**||**£**|**£**|
|Deferred Income|||2,050|
|Accruals|||18,958|
|**Total 2024 cf to 2025 for the purpose of R&P draft accounts**||21,008|
21,008|
21 -
## **St Margaret’s Church, Chipstead Parish**
## **Notes to the Financial Statements for the year ended 31 December 2025 (continued)**
|**7 Analysis of Net Assets by Fund**|**7 Analysis of Net Assets by Fund**|||||
|---|---|---|---|---|---|
|||**2025**||||
|||Investments
and Current
assets|Fixed assets|Current
liabilities|Fund
Balance|
|||£|£|£|£|
|Unrestricted Funds||650,485||||
|Fabric Fund||59,988||||
|Bell Fund||28,576||||
|PA Hall Fund||4,771||||
|Mugswell Hall Fund||3,750||||
|Appeal Fund||7,175||||
|Specific Donations||1,277||||
|Trust Funds||367||||
|Endowment Fund||132,278||||
|||||||
|Total Funds|**adds to £890,271**|888,669||||
A donation of £100,000 for disabled access will be returned in 2026.
**7 Analysis of Net Assets by Fund**
|**7 Analysis of Net Assets by Fund**|||||
|---|---|---|---|---|
|||**2024**|||
||Investments
and Current
assets|Fixed assets|Current
liabilities|Fund
Balance|
||£|£|£|£|
|Unrestricted Funds|790,939|
651|
(21,008)|
770,582|
|Fabric Fund|59,988|||59,988|
|Bell Fund|28,576|||28,576|
|PA Hall Fund|556|||556|
|Mugswell Hall Fund|3,020|||3,020|
|Appeal Fund|7,175|||7,175|
|Specific Donations|726|||726|
|Trust Funds|367|||367|
|Endowment Fund|132,278|||132,278|
||||||
|Total Funds|1,023,625|
651|
(21,008)|
1,003,268|
||||||
22 -
## **St Margaret’s Church, Chipstead Parish Notes to the Financial Statements for the year ended 31st December 2025 (continued)**
## **8. Related party transactions**
During the year there were no related party transactions
## **9. Lease Commitments**
The total future minimum lease payments under non-cancellable operating leases are payable:
|||**2025**|**2024**|
|---|---|---|---|
|||**£**|**£**|
|Within 1 year||897|
897|
|Within 2 to 5 years||448|
1,345|
|||1,345|
2,242|
|||||
|Lease payments during the year||897|
448|
The statutory accounts for year ended 31 December 2024 disclosed zero lease commitments. This was incorrect and the comparative figures are corrected above. The 3-year lease was agreed in 2024 and relates to a printer photocopier. The lease contract is for 12 quarterly payments of £224.24
23 -