The Parish of Malmesbury & Brokenborough within the Upper Avon Benefice End of Year Financial Statements Year ending 31 December 2020 Page I
- Reference and administrative information This is the annual trustees report of the Parochial Church Council (PCC) of the ecclesiastical parish of Malmesbury with Westport and Brokenborough, within the Upper Avon Benefice. The Charity is registered with the Charity Commission No. 1146631. There are two churches within the parish: the Abbey Church of St Peter and St Paul, Gloucester Street, Malmesbury, and St John the Baptist, Brokenborough. The parish office is located at The Old Squash Court, Holloway, Malmesbury SN16 9BA. The members of the PCC at the start of the financial year were Vicar Rev. Oliver Ross Associate Ministers Rev. Mandy Churcher Curate Vacant Churchwardens Mark Hunt Adele Carnegie Pro-warden for Brokenborou Richard Robins nod Members Deanery Synod - John Sunderland, Christopher Jager, Jane Henderson, Catherine Price. Elected Members Paul Coram, Doug Price (co-opted), Ann Holt, Geoff Canning, Doug Johnston, Sue Kirby, Alan McAdam, Janet Parke, Elliot Sagar, Simon Shaw, Jaqueline Tong, Carole Woodfield, Brian Whitehead. Ex-officio member Licensed Clergy Revd Mandy Churcher La Minister Re Not filled resentative Youth Re Not filled resentative Jane Sunderland was co-opted onto the PCC in January 2020 as Treasurer. Jane Henderson passed away during her term of office. At the Annual Parochial Church Meeting (APCM) in October 2020, Richard Searle-Barnes, Fiona Petrie, Matt Bird and Jane Sunderland were elected to serve on the PCC for 3 years. Simon Shaw was re- elected. Claire Camm was elected to the post of Church Warden, replacing Mark Hunt. Catherine Price was co-opted to Diocesan Synod. No Pro-warden for Brokenborough (Mark Odlum co-opted as Representative for Brokenborough) The posts of lay minister representative and youth representative were not filled. Page 2
At an extraordinary meeting of the new PCC in October 2020, Richard Searle-Barnes was appointed as PCC Secretary, Jane Sunderland as PCC Treasurer and Ann Holt as PCC Vice Chairman, replacing John Sunderland. Richard Venn was co-opted to the PCC. The main bank account is held with HSBC, with Lloyds being used to pay cash in. The APCM re-appointed Christopher Sullivan to be the Independent Examiner. Day to day running of the parish is in the hands of the Church Wardens and Ministry Team. 2. Structure government and management The PCC is a corporate body established by the Church of England. It operates under the Parochial Church Council Powers Measure. The appointment of PCC members is govemed by and set out in the Church Representation Rules. The members of the PCC are elected for a term of office of up to three years at the APCM. Ex officio members include the incumbent, two churchwardens, up to two pro-wardens of Brokenborough, the curate, one or more assistant ministers, a representative of the lay ministers, and those elected to serve on Deanery, Diocesan and General Synod. Other members are occasionally co-opted to serve until the following APCM. All members must have been on the electoral roll for at least six months, though no formal qualifications are required. Since the PCC is concerned with a wide range of matters affecting the parish, such as compliance with health and safety and disability discrimination legislation, and protection of children and vulnerable adults, expert advice in those fields is sought, and every effort is made to acquaint members with their responsibilities in these areas. The incumbent acts as Chairman of the PCC. As soon as possible after the APCM, the PCC chooses a vice-chairman, secretary and treasurer to serve until the next APCM. The business of the PCC is determined by the Standing Committee, which consists of a minimum of chairman, secretary and churchwardens. During 2020 the Treasurer, also served on the Standing Committee. The PCC normally meets on the second Saturday of alternate months, but other meetings may take place as the need arises. The PCC appoints committees to specialise in specific areas of the parish's activities. These include Property Oversight Committee (POC) Financial Oversight Committee (FOC) Health and Safety Committee (HSC) The composition of these committees is determined by the PCC, and they provide regular reports to the general meetings. One of the functions of the FOC is to review the financial risks to which the PCC is exposed and the procedures for managing these risks. 3. Objectives and activities The primary object of the PCC is the promotion of the Gospel of our Lord Jesus Christ according to the doctrines and practices of the Church of England. The PCC co-operates with the minister in promoting in the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. The PCC is also specifically responsible for the maintenance of the Parish Office, Holloway, Malmesbury and Eilmer House, 7-9 Gloucester Street, Malmesbury. Page 3
While much of the PCC'S time has been spent dealing with the day to day running of the parish, vision days are occasionally held at which the members assess how we are performing as a church and discussing the way forward. A portion of most regular meetings is set aside for a broader discussion of a particular topic. While the Abbey employs various staff, including a Children and Youth Minister, an organist, two parish administrators in a job share, events coordinator, a housekeeper and a cleaner, much of the day to day running of the parish is in the hands of unpaid volunteers. These include, but are not limited to, churchwardens and deputy wardens, members of the PCC, chaimen and members of committees, and persons responsible for the upkeep of the Abbey and grounds. No attempt has been made to assign a monetary value for the work these people cary out, or to estimate what the cost would have been of employing people to perform these tasks. The Malmesbury Abbey Restoration Scheme (MARS) - a £3 million project to build an extension to the Abbey to provide improved facilities and reorder the interior of the existing building - is still on hold (see the 2008 Trustees report). 4. Achievements and perfomiance st See separate document 1gh Century Beauty, 21 Century Church. 5. Financial review The impact during 2020 of the coronavirus pandemic on the Abbey's and Brokenborough's finances was significant. For 9 months of the year all buildings could not be fully open for visitors and congregation numbers were restricted. This impacted offerings at services and visitor donations. Similarly, the usual events and activities after March 2020 could not take place. Whilst income fell significantly, activity costs also reduced which went some way towards minimising the impact. Total income on unrestricted funds was £356k. Regular giving was lower than 2019 by £13k, all from a reduction in giving via envelopes. Loose plate collections from services fell by £13k and visitor donations fell by £4k. We were grateful to receive 3 legacies during the year. In September 2020 we received an unrestricted residuary legacy of £140,000 from the late Eleanor Green, a resident of Malmesbury a number of years ago. A further and final £10,790 from her estate has been received since the year end. £80k was pledged and given in Parish Share, the sum of money paid to Bristol DI0Se to help fund the expenses of running the Diocese, largely providing the stipend and housing for the clergy. Staff costs were £66k, after taking into account furlough grants receivable of £12k. Insurance, upkeep of the church yards and utilities are the next biggest expenses totalling £47k. The net result for the year was an excess of income over expenditure of £110k. The Green legacy has enabled the Abbey to increase its reserves, providing financial resilience through 2020 and a continuing source of finance to meet the uncertainties of 2021. Page 4
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PARISH OF MALMESBURY & BROKENBOROUGH WITHIN THE UPPER AVON BENEFICE I report on the accounts of The Parish of Malmesbury & Brokenborough within the Upper Avon Benefice for the year ended 31 December 2020, which are set out on pages 6 to 12. Respective responsibilities of the trustees and the examiner The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity's gross income exceeded £250,000 and l am qualified to undertake the examination by being a qualified member of the ICAEW. It is my responsibility to: Examine the accounts under section 145 of the 2011 Act; Follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. and State whether particular matters have come to my attention. Basis of the independent examinerfs report My examination was carried out in accordance with the General Directions given by the Charity Commission and to be found in Church Guidance, 2006 edition, issued by the Finance Division of the Archbishops, Council. An examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes consideration of 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, no opinion is given as to whether the accounts present a "true and fair view. and the report is limited to those matters set out in the statement below. Independent examinerfs statement In connection with my examination, no matter has come to my attention: 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 2011 Act, and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act, 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. C R Sullivan Chartered Accountant 48 Bonners Close Malmesbury SN16 9UF Page 5
ststement of Financial Activities Unrestricted Restricted Endowment funds funds funds Total Prior year funds total funds Income and endowments from: Donations and legacies Income from charitable activities Other trading activities Investments Other income Totsl income 339,624 6,018 5,508 4,840 7,533 347,157 6,018 5,508 4,996 258,383 9,966 23,697 12,245 156 355,990 7,689 363,679 307,430 Expenditure on: Raising funds Expenditure on charitable activities Total expenditure 3,493 236,971 240,464 3,493 250,453 253,946 10,764 276,500 287,264 13,482 13,482 Net income l (expenditu) resources before transfer 115,526 (5,793} 109,733 20,166 Transfers Gross transfers between funds - in Gross transfers between funds - out Other recognised gains I losses Net movement in funds 160 161 (161) 705 (705) (161) 115,366 (5,633) 109,733 20,166 Total funds brought forward 222,530 61,950 284,480 264,313 Total funds carrled forward 337,896 56,317 394,213 284,480 Represented by Unrestricted General fund 337,240 337,240 222,200 Designated Holiday At Home MUHLY Sound System 330 330 330 326 326 Restricted Abbey Online - digitsVstreamingllT Abbey Sofas Agency Collection Brokenborough Fabric Fund Choir Fund Heating Fund Ministry Assistant Move Screen Provision Quinquennial Repairs 269 269 2,000 195 28,926 601 2,833 5,318 1,165 20,913 195 25,378 515 2,124 5,800 1,165 20,871 195 25,378 515 2,124 5,800 1,165 20,871 Page 6
Balance sheet Total funds Prior ear funds Fixed assets Tangible assets Investments 136,823 148,767 136,824 148,767 Current assets Debtors Investments Cash at bank and in hand 6,067 3,390 695 128,769 132,854 255,214 261,281 Liabilities Creditors: Amounts falling due in one year 3,892 3,892 2,859 (2,859) Net current assets less current liabilities 257,389 135,713 Totsl assets less current liabilities 394,213 284,480 Total net assets less liabilities 394,213 284,480 Represented by Unrestricted General fund 337,240 222,200 Designated Holiday At Home MUHLY Mission Sound System 330 330 326 Restricted Brokenborough Fabric Bond Quinquennial Repairs Abbey Sofas Agency collection Brokenborough Fabric Fund Brokenborough Restricted Choir Fund Fabric Fund Heating Fund Ministry Assistant Move Screen Provision Abbey Online - digital/streaming/lT 20,871 20,913 2,000 195 28,926 195 25,378 515 601 2,124 5,800 1,165 269 2,833 5,318 1,165 Funds of the church 394,213 Approved rochial Church Council d signed on their behalf by Signed Rev.OC r} JI ate 2). Ro Signed J S Sunderland - Treasurer Date . Page 7
Analysis of income and expenditure Total Last Unrestricted Desi nated Restricted Endowment This ear ear INCOME AND ENDOWMENTS Donations and legacies Gift Aid - Bank Gift Aid - Envelopes Other planned giving Loose plate collections Giving through church boxes One-off Gift Aid gifts Donations appeals etc Tax recoverable on Gift Aid Legacies Recurring grants Non-recurring one-off grants Other funds generated 111,685 6,449 12,342 3,797 7,723 1,560 180 113,425 6,449 12,342 3,857 7,723 111,036 22,909 11,996 16,556 12,094 9,490 21,652 35,389 3,000 6,600 3,963 3,698 258,383 60 6,036 29,850 141,000 18,515 5,575 468 1,000 11,611 30,741 142,000 18,515 250 244 347,157 423 250 244 337,641 Total 1,983 7,533 Income from charitable activities Fees for weddings and funerals Lettings - objectives 4,853 1,165 6,018 4,853 1,165 6,018 9,866 100 9,966 Total Other trading activities Events Event income - Lifepath Event income - Skate Event income - Little Stars Lettings - fund raising 13,782 152 3,046 1,042 1,268 5,508 152 3,046 1,042 1,268 5,508 9,915 23,697 Total Investments Bank and building society interest Rent 62 4,778 4,840 156 218 4,778 4,996 287 11,958 12,245 Total 156 Other income Insurance claims 3,140 3,140 307,430 Total INCOME TOTAL 354,007 1,983 7,689 363,679 Page 8
Analysis of income and expenditure (continued) Total Last Unrestricted Desi nated Restricted Endowment This ear ear EXPENDITURE Raising funds Costs of events Costs of Events - Lifepath Costs of events - Skate Costs of events - Little Stars 10,764 490 2,607 396 3,493 490 2,607 396 3,493 Total 10,764 Expenditure on charitable activities Giving to missionary societies Home mission Secular charities Ministry parish share General staff costs Salaries Working expenses of incumbent Education Children and Youth Expenses Parish training and mission Church running - insurance Telephones Organ I piano tuning Church maintenance Cleaning Upkeep of services Upkeep of churchyard Administration Church running - general Church running - electric Church running - gas Church running - water Church running - oil Church running - heating and lighting Church running - depreciation Hall running electricity Hall running - gas Hall running - maintenance Hall running - telephone Hall running - water Church major repairs - structure Other PCC property upkeep 56 1,650 795 80,000 11,460 66,635 115 256 990 165 11,442 1,090 1,263 2,980 1,334 1,779 10,585 12,931 116 5,307 9,132 108 56 1,650 1,100 80,000 10,977 66,635 115 256 990 165 12,704 1,090 1,263 4,985 1,334 4,937 13,960 12,931 3,116 5,307 9,132 108 292 4,616 458 72,000 16,360 60,371 145 305 (483) 100 12,496 1,354 6,562 24,803 2,557 6,880 9,131 15,431 868 6,524 6,994 123 1,670 1,831 11,137 763 683 1,796 1,262 1,296 709 55 3,103 3,375 3,000 11,944 801 903 979 418 81 11,944 801 903 979 418 81 2,516 79 2,516 1,114 276,500 287,264 Total EXPENDITURE TOTAL 235,315 238,808 1,656 1,656 13,482 13,482 250,453 253,946 GRAND TOTAL 115 199 327 5,793 109,733 20,166 Page 9
Notes to the financial statements for the year ended 31 December 2020 Accounting policies Basis of preparation The financial statements have been prepared under the historical cost convention in accordance with the Church Accounting (Amendment) Regulations 2006 together with applicable accounting standards and the Charities Statement of Recommended Accounting Practice (FRS 102). The accounts include all transactions, assets and liabilities for which the Parochial Church Council (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. Funds General 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. Designated funds represent funds that have been given for a specific purpose, but which the PCC are not legally bound to use for that purpose. Restricted funds represent the funds that are restricted regarding their use by the PCC. Incoming resources Voluntary income and capital sources Collections are recognised when received by or on behalf of the PCC. Planned giving receivable under gift aid is recognised only when received. Income tax recoverable on gift aid donations is recognised when the donation is received. Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement and the amount due. Funds raised by fetes, bazaars and similar events are accounted for gross of expenses. Other ordinary incoming resources Rental income from letting of church premises is recognised when the rental is due. Income from investments Dividends and interest are accounted for when receivable. Tax recoverable on such income is recognised in the same accounting year. Resources used Grants Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation to the PCC. Activities directly relating to the work of the church The practice in previous years had been for the Parish Share to be accounted for when payable. However, starting in 2010 parishes have been asked to specify in advance each year how much they Page 10
intend paying. If they fall short in any year, the deficit will only be carried forward if there is every intention of making up the deficit in the early part of the following year. Tangible fixed assets Consecrated land and buildings and movable church furnishings Consecrated and benefId property is excluded from the accounts by s.96 (2) (a) of the Charities Act 1993. No value is placed on movable church furnishings held by the churchwardens on special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property. All expenditure incurred during the year on consecrated or beneficed buildings and movable church furnishings, whether maintenance or improvement, is written off as expenditure in the statement of financial activities. The cost of buildings is depreciated on a straight-line basis over 20 years. Other fixtures, fingS and office equipment Equipment used within the church premises is depreciated on a straight-line basis over ten years. Individual items of equipment with a purchase price of £10,000 or less are nonnally written off when the asset is acquired. Assets acquired prior to 1 January 1997 have been written off as expenditure and no subsequent value has been assigned to them in the balance sheet. Church Workers Pension Fund (CWPF) Malmesbury Abbey PCC participates in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers. The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014. Pension Builder Scheme The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes. Malmesbury Abbey PCC participates in the Pension Builder 2014 section. Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members, Normal Pension Age. There is no sub-division of assets between employers in each section of the Pension Builder Scheme. The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are the contributions payable (2020: £2,333, 2019: £2,542). Page 11
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2016. A valuation as at 31 December 2019 was under way as at 31 December 2020. For the Pension Builder 2014 section, the valuation revealed a surplus of £1.8m on the ongoing assumptions used. There is no requirement for deficit payments at the current time. The legal structure of the scheme is such that if another employer fails, Malmesbury Abbey PCC could become responsible for paying a share of that employer's pension liabilities. Page 12