## **Annual Report and Financial Statements of the Parochial Church Council**
## **for the year ended 31 December 2020**
## **Vicar – The Reverend Dr Brutus Green**
**Bank:**
National Westminster Bank 153 High Street, Putney, London SW15 1RX
## **Examiner of Accounts:**
Mr E F Challen FCA 303 Upper Richmond Road Putney, London SW15 6SS
**Church address** Putney Park Lane Putney, London SW15 5HU
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## **Financial review**
## **The PCC’s financial responsibilities**
As in all Church of England parishes the PCC must raise sufficient funds to maintain services in the church. The PCC does not own the church building or the grounds but is responsible for their upkeep, including insurance, repairs and decoration. The PCC is also responsible for the decoration of the vicarage.
The parish is asked to pay its share of the central costs of running the Church of England, which includes the salaries and pensions of the vicar as well as the central staff. This share is collected under the Parish Support Fund whereby each parish offers a pledge to the Diocese for its annual contribution.
## **Restricted and unrestricted funds**
The PCC collects and spends its money on either a restricted or unrestricted basis. A restricted gift is one given (and accepted) under a limitation on its use imposed by the donor.
There are various restricted funds: the vicar’s fund, specific donations and the fabric fund. There is also an external giving fund which is used to receive and disburse gifts for specific purposes made during the year. The specific donations fund holds major gifts made for specially stated purposes. The fabric fund, which is currently fully utilised, is used to pay for major works to the church, halls and grounds.
The unrestricted funds are the Church House fund, and the general fund. The first of these arose when it was necessary to show the Church House on the balance sheet at the time it was first let commercially. The general fund is the daily working fund of the PCC and it is freely available for all and any expenditure of the parish.
## **The accounts**
The accounts which follow this review comprise three elements:-
The statement of financial activities shows the donations received and income from investments, hall lettings and fees, together with the expenditure of that money under the various specified headings which the PCC is required to use. Both the income and outgoings are split between unrestricted and restricted funds.
The balance sheet lists the assets and liabilities of the parish.
The notes to the accounts give further detailed information as required by law.
2
## **Charity Status**
The Parochial Church Council of the Ecclesiastical Parish of St Margaret’s, Putney has been registered as a charity since 24[th] August 2011, registered charity number: 1143534.
## **Risks**
The PCC is required to consider the risks it faces and the means to address them. Financially, the main risks are damage to the buildings, injury to those on site, financial loss of funds and, lastly, lack of enough income.
For the first two the PCC maintains insurance cover for both property and liability risks. There is also a fabric fund for major works, the replacement of the Church roof which may be required in the next few years. The buildings are inspected regularly by qualified surveyors.
As regards the financial risks, the cash assets are mostly deposited with Nat West Bank and the Central Board of Finance and the treasurer maintains checks to ensure that proper accounting is made of the money in the PCC’s control.
Income and expenditure require constant review and are dealt with in the following section.
## **Commentary and the future**
## **EXECUTIVE SUMMARY**
Our total funds reduced by some £7,000 during the year, a creditable result bearing in mind the restrictions on church attendance and the reduced opportunities to let the Halls. Subsequently unrestricted donations have more than compensated for the operating deficit of some £14,000. At the same time, thanks to further generous support of the congregation we have installed a sound and streaming system (cost £17,000) which has allowed up to 60 homes to receive regularly our church services online. Cash balances have remained stable at some £93,000. Other significant financial matters arising in the year were:
1. Our agreed contribution of £81,000 was paid in full by monthly instalments
2. Hall letting income reduced from £51,000 in 2019 to £37,000 in 2020, although the income from the Nursery School was only slightly reduced
3. Stewardship income including gift aid reduced from £111,000 in 2019 to £96,000 in 2020.
## **LOOKING AHEAD TO 2021**
The restrictions on church attendance and hall lettings have continued in the first few months of 2021 with consequent effects on income. However, assuming restrictions are lifted in accordance with current Government plans we are optimistic that there will be only a small operating deficit in the current year.
3
## **On behalf of the PCC**
Andrew Gairdner (Churchwarden)
Michael Harrison (Churchwarden)
4
Parochial Church Council of St Margaret, Putney
|Statement of Financial Activities||||||
|---|---|---|---|---|---|
|Year ended 31st December 2020||||||
|||Unrestricted|Restricted|Total 2020|Total 2019|
|||£|£|£|£|
||Notes|||||
|**Incoming Resources**||||||
|Incoming resources from||||||
|Generated Funds||||||
|Voluntary Income|2a|£ 112,206|£ 29,287|£ 141,493|£ 165,522|
|Investment Income|2b|£ 21,600||£ 21,600|£ 21,600|
|Incoming resources charitable activities|2c|£ 47,853||£ 47,853|£ 58,396|
|Total incoming resources||£ 181,659|£ 29,287|£ 210,946|£ 245,518|
|**Resources expended**||||||
|Charitable Activities|3|£ 195,457|£ 22,237|£ 217,694|£ 205,727|
|Total resources expanded||£ 195,457|£ 22,237|£ 217,694|£ 205,727|
|**Net outgoing resources**||||||
|**and Net movement in fund**||£ -13,798|£ 7,050|£ -6,748|£ 39,791|
|Reconciliation of Funds||||||
|**Balance brought forward at**||£ 248,272|£ 32,190|£ 280,462|£ 240,671|
|1stJanuary||||||
|Balance brought forward at||||||
|31stDecember||£ 234,474|£ 39,240|£ 273,714|£ 280,462|
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|Parochial Church Council of St Margaret's Putney
Balance Sheet
At 31st December 2020
Notes
FIXED ASSESTS
Fixed assets for charity use
4
CURRENT ASSETS
Debtors
5
Short term deposits
Cash at the bank and in hand
LIABILITIES
Amounts falling due within one year
Creditors
6
NET CURRENT ASSETS
Total assets less current liabilities
Finance by:-
Unrestricted Funds
Restricted Funds
TOTAL FUNDS|2020
2019
£
£
165,000
165,000
19,800
37,688
24,000
24,000
70,509
68,765|
|---|---|
||114,309
130,453
-5,595
-14,991
108,714
115,462|
||273,714
280,462
234,474
248,272
39,240
32,190|
||273,714
280,462|
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## **PAROCHIAL CHURCH COUNCIL OF ST MARGARET, PUTNEY**
## **NOTES TO THE ACCOUNTS For the year ended 31 December 2020**
## **1 Accounting policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with the Church Accounting Regulations 2006, together with applicable accounting standards and the Charities SORP.
The financial statements have been prepared under the historical cost convention.
## **Funds**
Unrestricted funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application to the general purposes of the PCC. Funds designated for a particular purpose by the PCC are also unrestricted.
The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of groups that are informal gatherings of Church members.
## **Incoming resources**
Collections are recognised when received by or on behalf of the PCC. Planned giving receivable under covenant or otherwise is recognised only when received. Income tax recoverable on gift aid donations is recognised when the income is recognised.
Funds raised by events or campaigns are accounted for gross. Sales of books and magazines are accounted for gross. Rental income from the letting of Church premises is recognised when the rental is due.
Interest is recognised when received.
## **Resources expended**
Grants and donations are accounted for when awarded.
The diocesan “Parish Support Fund" for each financial year is accounted in the year that it is payable.
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## **Fixed assets**
Consecrated and beneficed land and property thereon is excluded from the accounts by s.96(2)(a) of the Charities Act 1993. The exception is where such property is used for commercial purposes. This became the case in 2000 with Church House and, thus, a fixed asset is included for this property.
Moveable church fittings and furnishings held by the Churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted as inalienable property unless consecrated. They are listed in the Church’s inventory, which can be inspected by application to the Churchwardens. The church hall is the only material operational asset.
For inalienable and operational assets acquired prior to 2000 there is insufficient cost information available and, therefore, such assets are not valued or included in the accounts. Items acquired since 1 January 2000 have been capitalised and depreciated in the accounts over their currently anticipated useful economic life (initially 4 years) on a straight-line basis. All such items are now written off.
Expenditure on the enhanced Sound System and Streaming equipment costing £17,023 in the year has been written off in the year rather than capitalised and written off fully in the year.
## **Current assets**
Amounts owing to the PCC at 31 December are shown as debtors less provision for amounts that may prove uncollectable.
Short term deposits include cash held on deposit with the CBF Church of England Funds.
8
|**2 Incoming Resources**
**Incoming resources from**
**generated funds**
**2a Voluntary income**
Stewardship
Income tax recoverable
Cash Collections
Sound and streaming donations
Roof Appeal
Other Donations and Appeals
Choir robes, Parish Support
**2b Investment Income**
Interest
Church House Rent
**Incoming resources from**
**charitable activities**
**2c Weddings and Funeral Fees**
**Events**
**To Generate Funds**
**Church Hall Lettings**
**Total incoming resources**|Unrestricted Funds
Restricted Funds
Total 2020
Total 2019
£
£
£
£
78,978
78.978
88,351
17,759
17,759
23,230
3,717
3,717
7,202
17,023
17,023
17,415
11,752
12,264
24,016
7,074
22,250|
|---|---|
||112,206
29,287
141,493
165,522
21,600
21,600
21,600|
||21,600
21,600
21,600
4,795
4,795
2,097
5,209
5,209
5,235|
||10,004
10,004
7,332|
||37,849
37,849
51,064|
|||
||£181,659
£29,287
£210,946
£245,518|
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## **3 Resources expended**
|3a Charitable activities
Overseas mission societies
Relief and Development agencies
Mission and Church Societies
3b The work of the church
Diocesan Parish Support Fund
Clergy expenses
Church running costs
Church hall running costs
Church House running costs
Bank chargers
Upkeep of Services
Expenditure on fabric:-
Sound System and Streaming
Repair Porch
Signage
Church Worker
Choir Robes
3c Management and
administration
Salaries and fees
**Total resources expended**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2020**
**Total 2019**
£
£
£
£|
|---|---|
||44
44
172
3,504
3,504
2,581
1,670
1,670
1,863|
||**5,214**
**5,214**
**4,616**
81,200
81,200
60,000
2,936
2,936
4,632
27,344
27,344
27,353
16,602
16,602
18,181
500
500
6,497
2,110
32,503
32,503
28,264
4,501
17,023
21,074
3,378
3,378
20,854
3,090
3,090
2,979
7,000|
||£ 171,604
£ 17,023
£188,627
£ 177,870
23,853
23,853
23,241|
||**195,457**
**22,237**
**217,694**
**205,727**|
10
|**4 Debtors**
Income tax recoverable
Other debtors
**5 Creditors**
External giving grants payable
Other creditors|2020
2019
18,000
30,000
1,800
7,688|
|---|---|
||**19,800**
**37,688**
180
281
5415
14,710|
||**5695**
**14,991**|
## **6 Fund details**
The unrestricted funds are the general fund, through which is passed normal church income and expenditure and a fund for the investment in Church House. The Restricted funds are the fabric fund, which includes amounts set aside by the PCC for fabric expenditure the specific donations fund and the vicar’s restricted fund.
Movements on the funds during the year were: -
|**Balance**
**at**
**Incoming**
**Resources**
**Balance**
**at**
**01.01.20**
**resources**
**expended**
**Transfers**
**31.12.20**
£
£
£
£ £|**Balance**
**at**
**Incoming**
**Resources**
**Balance**
**at**
**01.01.20**
**resources**
**expended**
**Transfers**
**31.12.20**
£
£
£
£ £|**Balance**
**at**
**Incoming**
**Resources**
**Balance**
**at**
**01.01.20**
**resources**
**expended**
**Transfers**
**31.12.20**
£
£
£
£ £|
|---|---|---|
|**Unrestricted funds**
General
Church House
**Restricted funds**
External giving
Specific donations
Vicar's restricted
Fabric fund|83,272
181,659
195,457
165,000
31,000
29,287
22,237
1,190|23,474
165,000
38,050
1,190|
|**Total Funds**|**280,462**
**210,946 217,694**|**273,714**|
## **7. Staff costs and related party transactions**
No member of the PCC received remuneration from the funds. No out of pocket expenses have been reimbursed to PCC members. The PCC has four part-time employees: an office administrator, music director and two cleaners, none of whom earned more than £50,000 pa or more. These church costs are analysed as follows.
|||**2020**|**2019**|
|---|---|---|---|
||£||£|
|Wages and Salaries||48,853|46,716|
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## **EXAMINERS REPORT TO THE PAROCHIAL CHURCH COUNCIL OF THE PARISH OF ST MARGARET’S CHURCH PUTNEY**
This report on the accounts of the PCC for the year ended 31 December 2020, which are set out on pages 6 to 11, is in respect of an examination carried out under Regulation 3(3) of the Church Accounting Regulations 2006 (‘the Regulations’) and s.43 of the Charities Act 2011 (‘the Act’).
## **Respective responsibilities of trustees and examiner**
As the members of the PCC, you are responsible for the preparation of the accounts; you consider that the audit requirement of Regulation 43(2) and section 43(2) of the Act do not apply. It is my responsibility to issue this report on those accounts in accordance with the terms of the Regulations.
## **Basis of examiner’s report**
My examination was carried out in accordance with the General Directions given by the Charity Commission under section 145 (5)(6) of the Act and to be found in the Church guidance, 2006 edition. That examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.
## **Examiner’s statement**
In connection with my examination, no matter has come to my attention:
- 1 which gives me reasonable cause to believe that in any material respect the requirements to keep accounting records in accordance with section 130 of the Act; and
- to prepare accounts which accord with the accounting records and comply with the requirements of the Act and the Regulations have not been met;
or
- 2 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Mr E F Challen FCA 303 Upper Richmond Road Putney, London SW15 6SS
1 July 2021
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