## **Parochial Church Council of St. Giles’ Church Exhall**
**Annual Financial Report for the year ending 31 December 2021**
## **Incumbent**
The Reverend Gail Phillip
## **Treasurer**
The Reverend Stephen Carter
## **Bankers**
Santander UK plc CCLA Investment Management Ltd. Churches’ Mutual Credit Union
## **Independent Examiner**
Gavin Kibble
## **Page Contents**
2 Introduction 3 Financial Report & Policies 4 Independent Examiner’s Report 5 Statement of Financial Activities
6 – 7 Statement of Assets and Liabilities 8 – 9 Analysis of Income and Expenditure 10 Conclusion
_Page 2_
## **Introduction**
## **Basis of preparing the financial statements**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Incoming resources and resources expended**
All incoming resources are included in the Statement of Financial Activities when the church is legally entitled to the income and the amount can be quantified with reasonable accuracy. Expenditure is accounted for on an accruals and prepayments basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Fund accounting**
Unrestricted funds can be used in accordance with the church’s objectives at the discretion of the PCC. Designated funds comprise funds that have been set aside at the discretion of the PCC for specific purposes and recorded as such in the minutes of the PCC. Restricted funds can only be used for the particular purposes specified by the donor or when funds are raised for particular restricted purposes.
The restricted fund for the Church Houses is supported by income derived from the legacy of Frances Riley. This can be used for the upkeep of the Churchyard (including the Meadow) and for maintenance of the church building.
The Church Maintenance restricted fund is largely supported by income derived from the legacy of Susan Bourne. It can be used for the maintenance of the church building and the enhancement of the audiovisual equipment.
Other, smaller, restricted funds derive their funds from direct grants, donations and investment income. They can be used for the specific purposes suggested by their titles.
## **Investments**
Investments are stated at market value. The house in Coventry Road is currently used as an investment asset and generates income for the church. A valuation instructed by the PCC in 2019 indicated that its open market value at that time was £185,000.
## **Staff Costs**
The average monthly headcount was 1.67 staff (2020: two staff) and the average monthly full-time equivalent headcount (including part-time staff) was one (2020: one). No staff were furloughed as a result of the Covid-19 pandemic. No staff were paid at a higher rate than £60,000 per annum during this or the previous year. The church subscribes to a workplace pension scheme. There was one member of the scheme until August 2021 and none thereafter.
_Page 3_
## **Financial Report**
With great thankfulness, we are able to report that the current financial situation of the church is much healthier than we might have anticipated. It cannot yet be classed as good, but rather as a work in progress. Our overall income was up by £18,865 year on year and our overall expenditure decreased by £2,069 year on year. This still left us with a deficit of £8,626 for the year, but that was much better than the previous year’s deficit of £29,559.
The stewardship campaign we held at the beginning of the year encouraged people in their giving and brought significant benefit. Our average individual planned weekly giving went up from £6.63 in 2019 to £8.36 in 2021. Whilst this is a really positive outcome, we must not forget the fact that, for us to break even, average weekly giving needs to be nearer £12.00. One way to achieve this would be to encourage more people to join the planned giving scheme in one form or another. There were 92 households with planned givers in 2021 whilst there were 142 households represented on our Electoral Roll, so we still have some work to do on this. We have also diversified the ways in which people can contribute financially, for example through online giving and the recently installed card payment terminal.
A breakdown of all these figures is available on request. A copy of the full accounts is posted on a noticeboard in church.
The Large Church Hall is a charity in its own right and its finances have to be reported to the Charity Commission separately. The details of the figures, however, are part of the main church accounts. Income received from lettings and donations in the year totalled £6,262 (2020: £3,652), while total expenditure to run and maintain the hall and car park came in at £3,037 (2020: £4,416), giving a profit of £3,225 (2020: deficit of £764).
## **Accounting Policies**
## **Reserves Policy**
The PCC’s policy is to review the reserves of the church on a regular basis. This review encompasses the nature of income and expenditure streams, and the PCC has determined that a general fund reserve of three month’s unrestricted expenditure should be maintained. At the end of the year this target was £23,839 (2020: £26,159).
## **Risk Policy**
The PCC has identified the risks that might affect the church and has provided relevant training as advised. The PCC reviews the church’s policies and procedures regularly to minimise any risks identified.
_Page 4_
## **Independent Examiner’s report to the PCC of St. Giles’ Church, Exhall for the year ended 31st December 2021.**
This report on the accounts of the PCC for the year ended 31st December 2021, which are set out on pages 5 to 10, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 (‘the Regulations’) and s.145 of the Charities Act 2011 (‘the Act’).
## **Respective responsibilities of the PCC and the examiner**
As members of the PCC you are responsible for the preparation of the accounts; you consider that the audit requirement of the Regulations and section 144(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 Act and the Regulations.
## **Basis of this report**
My examination was carried out in accordance with the General Directions given by the Charity Commission under the Act and to be found in the Church Guidance, 2006 edition, issued by the Finance Division of the Archbishop’s Council. 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.
## **Independent 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 financial statements 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.
_Page 5_
1 April 2022 Gavin Kibble ACMA 1 Kineton Road Wyken Coventry CV2 3NR
_Page 6_
## **Statement of Financial Activities**
|**Unrestricted RestrictedEndowment**
**Total Prior year**
**funds**
**funds**
**funds**
**fundstotal funds**|**Unrestricted RestrictedEndowment**
**Total Prior year**
**funds**
**funds**
**funds**
**fundstotal funds**|
|---|---|
|**Income and endowments from:**||
|Donations and legacies|60,937
10,587
—
71,524
61,112|
|Income from charitable activities|18,751
122
—
18,873
12,910|
|Other trading activities|2,355
9,000
—
11,355
8,761|
|Investments|0
10,651
—
10,651
10,755|
|**Total income**|**82,043**
**30,361**
**—**
**112,405**
**93,540**|
|||
|**Expenditure on:**||
|Raising funds|103
1,200
—
1,303
1,564|
|Expenditure on charitable activities|95,254
24,473
—
119,728
121,535|
|**Total expenditure**|**95,357**
**25,673**
**—**
**121,031**
**123,100**|
|||
|**Net income / (expenditure) resources**
**before transfer**|**(13,313)**
**4,687**
**—**
**(8,626)**
**(29,559)**|
|||
|**Transfers**||
|Gross transfers between funds - in|35,184
10,597
—
45,782
18,771|
|Gross transfers between funds - out|(31,132)
(14,649)
—
(45,782)
(18,771)|
|**Other recognised gains / losses**||
|Gains / losses on investment assets|7,832
52,303
—
60,135
27,676|
|**Net movement in funds**|**(1,429)**
**52,938**
**—**
**51,509**
**(1,883)**|
|||
|**Total funds brought forward**|**61,241**
**1,153,917**
**—**
**1,215,159**
**1,217,042**|
|||
|**Total funds carried forward**|**59,812**
**1,206,856**
**—**
**1,266,668**
**1,215,159**|
|||
|**Represented by**||
|||
|**Unrestricted**||
|General fund|59,269
—
—
59,269
60,237|
|||
|**Designated**||
|Church Hall - Large|230
—
—
230
(749)|
|Church Hall - Small|—
—
—
—
122|
|Church Maintenance|—
—
—
—
1,317|
|Church Meadow|312
—
—
312
312|
|||
|**Restricted**||
|Church Hall - Large|—
220
—
220
580|
|Church Hall - Small|—
338
—
338
500|
|Church Houses|—
330,957
—
330,957
294,675|
|Church Maintenance|—
183,494
—
183,494
160,489|
|Church Meadow|—
636
—
636
1,821|
|Churchyard|—
(1,969)
—
(1,969)
2,664|
|Property Values|—
691,084
—
691,084
691,084|
|Remembrance Parade Road Closures|—
600
—
600
400|
|St Giles' Toddlers' Group|—
56
—
56
264|
|Youth Café|—
1,438
—
1,438
1,438|
|||
_Page 7_
## **Statement of assets and liabilities**
||**This year**
**Last year**|
|---|---|
|**Investments**||
|**CCLA Riley Trust Legacy A/c - 111002290S**||
|Church Houses (Restricted) -|256,316
224,238|
||**256,316**
**224,238**|
|||
|**CCLA Bourne Legacy A/c - 611067001S**||
|Church Maintenance (Restricted) -|161,605
141,379|
||**161,605**
**141,379**|
|||
|**CCLA General Investment A/c - 611067001J**||
|General fund (Unrestricted) -|52,679
44,847|
||**52,679**
**44,847**|
|||
|**Total for Investments**|**470,601**
**410,465**|
|||
|**Tangible assets**||
|**Large Hall**||
|Property Values (Restricted) -|396,348
396,348|
||**396,348**
**396,348**|
|||
|**Small Hall**||
|Property Values (Restricted) -|109,736
109,736|
||**109,736**
**109,736**|
|||
|**House - Coventry Road**||
|Property Values (Restricted) -|185,000
185,000|
||**185,000**
**185,000**|
|||
|**Total for Tangible assets**|**691,084**
**691,084**|
|||
|**Cash at bank and in hand**||
|**Santander Current Account**||
|General fund (Unrestricted) -|5,858
14,742|
|Church Maintenance (Designated) -|—
1,317|
|Church Maintenance (Restricted) -|—
1,331|
|Church Hall - Large (Designated) -|230
(749)|
|Church Hall - Large (Restricted) -|220
580|
|Church Hall - Small (Designated) -|—
122|
|Church Hall - Small (Restricted) -|338
500|
|Churchyard (Restricted) -|(1,969)
2,664|
|Church Meadow (Designated) -|312
312|
|Church Meadow (Restricted) -|636
1,821|
|Church Houses (Restricted) -|1,763
4,199|
|Youth Café (Restricted) -|1,438
1,438|
|St Giles' Toddlers' Group (Restricted) -|56
159|
|Remembrance Parade Road Closures (Restricted) -|600
400|
|Agency collection (Restricted) -|65
—|
||**9,549**
**28,841**|
|||
|**CCLA No 2 A/c - 611067003D**||
|General fund (Unrestricted) -|316
316|
||**316**
**316**|
|||
|**CCLA Restoration A/c - 611067004D**||
|Church Maintenance (Restricted) -|21,889
17,778|
||**21,889**
**17,778**|
|||
|**CCLA Riley Trust Income A/c - 611067005D**||
|Church Houses (Restricted) -|72,778
66,237|
||**72,778**
**66,237**|
|||
|**CMCU Ltd A/c - 1031**||
|General fund (Unrestricted) -|316
316|
||**316**
**316**|
_Page 8_
|**Hawkins A/c - 222 Coventry Road**||
|---|---|
|Church Houses (Restricted) -|100
—|
||**100**
**—**|
|||
|**Treasurer's Cash A/c**||
|General fund (Unrestricted) -|50
—|
|Agency collection (Restricted) -|(50)
—|
||**—**
**—**|
|||
|**Administrator's Cash A/c**||
|General fund (Unrestricted) -|27
1|
||**27**
**1**|
|||
|**Toddlers' Group Cash A/c**||
|St Giles' Toddlers' Group (Restricted) -|—
104|
||**—**
**104**|
|||
|**Churchwardens' Cash A/c**||
|General fund (Unrestricted) -|20
12|
||**20**
**12**|
|||
|**Total for Cash at bank and in hand**|**104,998**
**113,609**|
|||
|**Agency accounts**||
|**Agency collections**||
|Agency collection (Restricted) -|(15)
—|
|||
|**Total for Agency accounts**|**(15)**
**—**|
|||
|**Grand total**|**1,266,668**
**1,215,159**|
_Page 9_
## **Analysis of income and expenditure**
||||
|---|---|---|
|||—
—
122
—
122
—|
|||12,169
6,582
122
—
18,873
12,910
1,052
—
—
—
1,052
30
67
—
—
—
67
65
—
—
9,000
—
9,000
6,824
22
—
—
—
22
—
91
—
—
—
91
15
—
651
—
—
651
884
—
—
—
—
—
2|
|||470
—
—
—
470
940|
|||1,703
651
9,000
—
11,355
8,761
—
—
—
—
—
125
—
—
10,605
—
10,605
10,293|
|||0
—
45
—
45
336|
||Total|0
—
10,651
—
10,651
10,755|
||**INCOME TOTAL**|74,803
7,240
30,361
—
112,405
93,540|
_Page 10_
## **EXPENDITURE**
|**EXPENDITURE**|||||||
|---|---|---|---|---|---|---|
|**Raising funds**|||||||
|Costs of stewardship campaign|103|—|—|—|103|271|
|House management costs -|—|—|1,200|—|1,200|1,292|
|Coventry Road|||||||
|Total|103|—|1,200|—|1,303|1,564|
|**Expenditure on charitable activities**|||||||
|Giving - Missionary Societies|690|—|—|—|690|1,360|
|Giving - Relief & Development|788|—|—|—|788|1,360|
|Agencies|||||||
|Giving - Home mission|—|—|—|—|—|1,360|
|Giving - Secular Charities|690|—|—|—|690|1,360|
|Ministry parish share etc|63,336|—|—|—|63,336|67,220|
|Family Worker Salary|6,057|—|1,996|—|8,053|11,960|
|Salary of parish administrator|2,819|—|—|—|2,819|5,170|
|Organists|—|—|—|—|—|625|
|Working expenses of Incumbent|173|—|—|—|173|199|
|Working expenses of Curate|337|—|—|—|337|—|
|Working expenses of F & C's|162|—|—|—|162|393|
|Worker|||||||
|Vicar's telephone|342|—|—|—|342|116|
|Parish training|50|—|—|—|50|144|
|Mission Resources|177|—|400|—|577|485|
|Website|—|—|—|—|—|93|
|Social Outreach Events|138|—|—|—|138|—|
|Church running - insurance|3,776|—|—|—|3,776|3,956|
|Church ofce - Telephone /|447|—|—|—|447|466|
|Internet|||||||
|Organ / piano tuning|295|—|—|—|295|295|
|Church maintenance|47|—|544|—|591|2,072|
|Cleaning|876|—|—|—|876|592|
|Sundry church expenses|1,149|—|—|—|1,149|672|
|Covid-19 Expenses|51|—|—|—|51|342|
|Upkeep of services|1,392|—|—|—|1,392|1,224|
|Choir Expenses|115|—|—|—|115|—|
|Upkeep of Churchyard|—|—|5,656|—|5,656|3,039|
|Upkeep of Meadow|—|—|5,255|—|5,255|1,622|
|Waste Disposal|—|—|986|—|986|986|
|Administration|582|—|—|—|582|207|
|Ofce Stationery|818|—|—|—|818|904|
|Photocopier Costs|1,718|—|—|—|1,718|1,682|
|Refreshments|99|—|—|—|99|235|
|Playgroup expenses|—|—|230|—|230|—|
|Church running - electric|421|—|—|—|421|305|
|Church running - gas|1,235|—|—|—|1,235|1,182|
|Church Broadband Connection|489|—|—|—|489|238|
|Magazine expenses|110|—|—|—|110|110|
|Large Hall running - electricity|—|853|—|—|853|1,535|
|Large Hall running - licencing|—|35|—|—|35|124|
|Large Hall running - insurance|—|1,240|—|—|1,240|1,299|
|Large Hall running - maintenance|—|88|—|—|88|838|
|Large Hall running - cleaning|—|821|—|—|821|620|
|Small Hall running - electricity|—|349|—|—|349|445|
|Small Hall running - insurance|—|377|—|—|377|395|
|Small Hall running - maintenance|—|208|—|—|208|33|
|Small Hall running - cleaning|—|320|—|—|320|263|
|House insurance costs - Coventry|—|—|190|—|190|178|
|Road|||||||
|House minor repair costs -|—|—|130|—|130|3,506|
|Coventry Road|||||||
|House running costs - Coventry|—|—|230|—|230|55|
|Road|||||||
|Governance costs|250|—|—|—|250|250|
|examination/audit fee|||||||
|Church major repairs - structure|—|1,317|3,542|—|4,860|—|
|Church Technology Equipment|—|—|2,793|—|2,793|—|
_Page 11_
|Large Hall - major repairs
(installation|—
—
2,518
—
2,518
—|
|---|---|
|Total|89,641
5,612
24,473
—
119,728
121,535|
|**EXPENDITURE TOTAL**|89,744
5,612
25,673
—
121,031
123,100|
|||
|**GRAND TOTAL**|(14,942)
1,628
4,687
—
(8,626)
(29,559)|
_Page 12_
## **Conclusion**
Stephen and Gwyneth Carter continued to count and bank the money until the end of August, and our thanks go to them for their great help. The relaxing of Covid-19 restrictions from then on meant that Sue Talbot and her friend Valerie Wells were able once again to do this for us regularly and we are extremely grateful for their care and diligence in helping us in this way.
We are, thankfully, in a better financial position than we might have expected or hoped, but we do still need to increase our regular giving to ensure longer-term sustainability and growth. The Finance and Stewardship Committee has worked hard over the last two years on raising awareness of, and addressing, the financial challenges that face us. We are deeply grateful for their diligence in this work, which will continue to be a key area for discussion, prayer and development, with an emphasis on every member of the church family having a vital part to play.
This report dated: 17 February 2022
Stephen Carter PCC Treasurer
Gail Phillip Incumbent & PCC Chair
_Page 13_