## **PARISH CHURCH OF ST MARK KENNINGTON**
**The Parochial Church Council of the Ecclesiastical Parish of St Mark Kennington**
**REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021**
**PARISH CHURCH OF ST MARK KENNINGTON**
**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **CONTENTS**
||Page|
|---|---|
|**Legal and administrative information**|1|
|**Board of Trustees's report**|2|
|**Independent Auditors' Report**|7|
|**Statement Of Financial Activities**|10|
|**Balance Sheet**|11|
|**Cash Flow Statement**|12|
|**Notes to the financial statements**|12|
**PARISH CHURCH OF ST MARK KENNINGTON**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS For the year ended 31 December 2021**
|**Board of Trustees**|Rev Canon Stephen Coulson|Incumbent|
|---|---|---|
||Nicola Gurung|Treasurer|
||Sebastian Fenton|Warden|
||David Thomas|Warden|
||Rebecca Chapman|Deanery Synod|
||Cherie Thomas|Deanery Synod|
||Kojo Odiasempa||
||Tim Hodgson||
||Emma Webb||
||Samuel Johns||
||Ann Lawrence|Resigned September 2021|
||Steve Pesics||
||Eddy Chan-Lok||
|**Charity reg. no.**|1147434||
|**Registered Charity Name**|The Parochial Church Council of the Ecclesiastical||
||Parish of St Mark Kennington||
||(Also known as Parish Church of St Mark Kennington)||
|**Registered office**|PCC of the Parish of St Mark||
||St Mark’s Church||
||337 Kennington Park Road||
||London||
||SE11 4PW||
|**Auditors**|Knox Cropper LLP||
||65 Leadenhall Street||
||London||
||EC3A 2AD||
|**Bankers**|Natwest Bank PLC||
||PO Box 3171||
||290 Walworth Road||
||London||
||SE17 3 RQ||
1
**PARISH CHURCH OF ST MARK KENNINGTON**
## **REPORT OF THE TRUSTEES For the year ended 31 December 2021**
The Trustees present their annual report for the year ended 31st December 2021 under the Charities Act 2011, together with the financial statements for the year, and confirm that the latter comply with the requirements of the Act, the Trust Deed and the Charities SORP.
## **Structure, Governance and Management**
## Governing document
The Parochial Church Council of the Ecclesiastical Parish of St Mark Kennington is governed by the Parochial Church Council Powers Measure (1956) as amended and Church Representational Rules that came into force on 2 January 1957.
Organisation
The charity trustees are responsible for the administration of the Parochial Church Council of the Ecclesiastical Parish of St Mark Kennington. The trustees have agreed that the day to day management of the charity's activities is delegated to the PCC which meets regularly.
Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting in accordance with the Church Representation rules.
## Committees
## The Standing Committee
The Standing Committee has the power to transact the business of the PCC between its meetings, subject to any directions given by the Council.
Members of the Standing Committee during the year were :
|Rev Canon Stephen Coulson|Incumbent|
|---|---|
|Sebastian Fenton|Warden|
|David Thomas|Warden|
|Nicola Gurung|Treasurer|
## The Staffing Group
The Staffing Group looks after staffing issues and has capacity to consider appraisals, salary reviews and recruitment. Where necessary, the PCC retains decision making powers having regard to Staffing Group considerations.
Members of the Staffing Group during the year were :
Rev Canon Stephen Coulson Incumbent Sebastian Fenton Warden David Thomas Warden Rebecca Chapman Deanery Synod Nicola Gurung Treasurer Eddy Chan-Lok
## Risk policy
The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems are being established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.
2
**PARISH CHURCH OF ST MARK KENNINGTON**
## **REPORT OF THE TRUSTEES For the year ended 31 December 2021**
## **Charitable Objectives, Activities and Achievements**
## _Objectives of the charity_
St Mark’s PCC has the responsibility of co-operating with the incumbent in promoting the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for the Church, Montgomery Hall and 1 Prima Road.
## _Objectives and Strategies of the Trust_
The Trust continues to seek to achieve its aims through various objectives. The trustees are aware of the Charity Commission’s general and supplementary guidance on public benefit concerning the charity’s aims and constantly seek to maximise the Trust’s benefit to the public and community at large.
## _Activities_
The Trustees of the PCC meet formally every 2 months with occasional additional meetings called as may be necessary. The meetings are Chaired by our incumbent Rev Stephen Coulson. Rev Coulson also sets the Agenda for PCC business and issues minutes of meetings. Rev Coulson has asked that the following activities and achievements be noted in the Trustees report for the year.
## _Staff and Personnel Activity_
The Rev Coulson was licensed as Priest-in-charge of St. Stephen’s, South Lambeth in November 2021. A new Clergy colleague, Rev Sam Whittington joined the Church staff as associate Vicar in September 2021.We employ 7 people on a part-time basis, and 1 person on a full-time basis.
## _Children & Youth work_
The Children’s Worker, Dr. Caroline Levitt resigned from Church employment on 31[st] August, but continues to give a lead on Children’s work in a voluntary capacity. The Youth Worker and Church Administrator Liandra Odiasempa, started maternity leave in July 2021.
## _Worship Ministry_
Lonnie O’Connor covered maternity leave of Elspeth Thompson, and was subsequently appointed to the substantive part-time post.
## _CAP Ministry_
Cherie Thomas as CAP Debt Centre manager continues to co-ordinate debt counselling and money education activities.
## _Safeguarding_
The PCC updated policies and seeks constantly to consider issues to keep everybody as safe as possible. Emma Webb and Audley Clarke were appointed as new Parish safeguarding Officers (PSOs).
## _St. Mark’s Church of England Primary School_
The PCC provides Governors for our Church Primary School. St. Mark’s Church of England Primary School is currently thriving with outstanding leadership, and enjoying the confidence of the community. There are also close links with Archbishop Tenison’s School Academy
3
**PARISH CHURCH OF ST MARK KENNINGTON**
## **REPORT OF THE TRUSTEES For the year ended 31 December 2021**
## _**Church Activities**_
## _Montgomery Hall_
Our Community Hall continued to accommodate offices for River of Life Church and Local Welcome. From January 2021, the Lambeth GP Federations used the Montgomery Hall as a Covid 19 Vaccination Centre on a daily basis. Over 225,000 vaccinations were administered to local people, attracting national attention and acclaim.
After a few years of discussion within the PCC and the wider Church, the PCC agreed to continue discussions with the Diocese in seeking to agree a new development of the Montgomery Hall and the Vicarage site.
## _Charitable Activity_
The PCC continued to be encouraged by the partnerships with Spear (Young adults being helped to be work-ready) and ODAAT (rehabilitation from addiction).
## _Churchyard_
The PCC has continued to work with the Diocese and Lambeth Council to improve the Children’s playground in the Churchyard. The PCC continues a fruitful connection with City and Country farmers’ Market (CCFM) to host the weekly Farmers Market in the land owned by the Church. The PCC also hosts the daily Coffee stall, and 3 days a week the popular Bokit-la takeaway stall. Vauxhall One, also held a successful 4 day music festival in February 2021. All of which bring some welcome revenue, these activities have been beneficial in reducing anti-social behaviour in the Churchyard. A designated space by the Church office is also being gradually developed as a Memorial Garden.
## _Social Media_
The Church YouTube channel continues to livestream the morning and evening Services, with content viewed over 37, 845 times since its launch on 18[th] March 2020.
## **Financial Review**
The PCC Treasurer, Nicola Gurung was appointed in April 2021 taking over from outgoing Treasurer David Levitt. The Treasurer has been assisted by the Church administrator Liandra Odiasempa until her departure on maternity leave in July 2021 and has since been assisted by our relief replacement Hanna Boxall.
The Treasurer reports to the PCC formally in writing at every regular PCC meeting and reports are circulated to all PCC members whether in attendance or not.
The previous external reporting accountant, Linda Noel has now retired from practice and we thank her for her service over the years. This year we have commenced a new reporting relationship with Knox Cropper LLP a specialist Charity Sector auditor who we hope will assist us with the many challenges we face moving forward.
We have been extremely fortunate over the last year for the continued use of Montgomery Hall as a COVID Vaccination Centre the revenues from which have contributed significantly to PCC resources during the period. This has continued in the current year until April 2022.
4
**PARISH CHURCH OF ST MARK KENNINGTON**
## **REPORT OF THE TRUSTEES For the year ended 31 December 2021**
Montgomery Hall rentals have been the main contributor to this years increased revenues of £427,623, up from £198,769 in 2020. Whilst the increased revenues are welcome it has also brought increased costs on maintenance and repairs at the site. Additionally, we have also invested resources set aside for the Church Playground £20,000 and continue to maintain the PCC investment asset rental properties at Prima Road and improved the facilities at St Mark Church, investing some £17,000 on the Crypt toilet facilities. At the suggestion of Rev Coulson the PCC have also been able to increased their annual contribution this year to the Dioceses (Parish Support Fund) to £93,000 increased from £76,000 in 2020. In total expenditure for the year amounted to £360,506 up from the £224,236 expended in 2020.
In all this has provided the PCC with an annual surplus of £67,117 for the year up from the deficit in 2020 of £25,467.
Our full income and expenditure report for the period is set out in detail at page 10 and should be reviewed in conjunction with the detailed notes as referenced. Our full statement of financial position at 31[st] December 2021 is set out in the balance sheet report on page 11 and this should be reviewed in conjunction with the detailed notes as referenced.
## _Montgomery Hall_
The PCC continue to explore the possibility of redevelopment of the PCC owned Montgomery Hall site in conjunction with the Diocese owned vicarage site. Several indicative bids from development partners indicate that a redevelopment could provide significant funds for the charitable use of the PCC. The PCC continue to consider how best to enter into this process while ensuring we maintain our existing Church Hall facilities and resources.
## _Financial Administration Upgrade_
During the year the Treasurer has embarked on a process of improvement and updating of the financial administration function of the PCC engaging new accounting and reporting software and beginning the process of digitally storing the PCC financial and administrative records. We have also taken advice on the improvement of PCC governance practice in our financial management and administration and continue the process of implementation. The PCC continue to improve and update all of our practices to comply with ongoing statutory obligations in this regard.
## _Donations App_
This upgrade process has also extended to the implementation of a new online donations app which allows parishioners to donate via mobile or online in a more modern and convenient way whilst dealing with HMRC and regulatory compliance automatically. The Treasurer and PCC recommend all parishioners and donors who can use “The Donations app” which can be found on the iphone or android app resource. Full details of the app and a download link are also available on the Church website at _www.stmarkskennington.org/donate_ and in the entry hall at St Mark Church. Donors can also use the QR code.
## **Reserves Policy**
It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately six months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs and to respond to emergency applications for grants which arise from time to time. Unrestricted funds were maintained at this level throughout the year.
5
**PARISH CHURCH OF ST MARK KENNINGTON**
## **REPORT OF THE TRUSTEES For the year ended 31 December 2021**
## **Trustees' responsibilities statement**
The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for that period. In preparing these accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
- make judgments and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. They are 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In so far as the Trustees are aware
- there is no relevant audit information of which the charity's auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
This report was approved and authorised for issue by the Board of Trustees and signed on its behalf by:
Nicola Gurung Treasurer
Date ___________________
6
**PARISH CHURCH OF ST MARK KENNINGTON**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF PARISH CHURCH OF ST MARK KENNINGTON FOR THE YEAR ENDED 31 DECEMBER 2021**
We have audited the financial statements of Parish Church of St Mark Kennington (the ‘charity’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
/Continued …
7
**PARISH CHURCH OF ST MARK KENNINGTON**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARISH CHURCH OF ST MARK KENNINGTON FOR THE YEAR ENDED 31 DECEMBER 2021**
## **(Continued)**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
- **•** the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement in the Trustees' Report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
/Continued …
8
**PARISH CHURCH OF ST MARK KENNINGTON**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARISH CHURCH OF ST MARK KENNINGTON FOR THE YEAR ENDED 31 DECEMBER 2021**
## **(Continued)**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are the Statement of Recommended Practice 'Accounting and Reporting by Charities' (SORP 2019), in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) applicable to smaller entities.
- We understood how the charity is complying with those frameworks via communication with those charged with governance, together with the review of the charity’s documented policies and procedures. The charity is required to comply with charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance.
- The audit team, which is experienced in the audit of charities, considered the charity’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override and allocation of costs to charitable activities and restricted funds.
- Our approach was to check that the income from donations, rents and hire of property were properly identified and accurately disclosed, that expenditure complied with the control procedures and was appropriately charged. We also reviewed major journal adjustments along with unusual transactions and considered the identification and disclosure of related party transactions.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: _www.frc.org.uk/auditorsresponsibilities_ . This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report or for the opinions we have formed.
## **Knox Cropper LLP**
Chartered Accountants & Statutory Auditors 65 Leadenhall Street London EC3A 2AD
________________
Knox Cropper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
9
**PARISH CHURCH OF ST MARK KENNINGTON**
## **STATEMENT OF FINANCIAL ACTIVITIES (incorporating the Income and Expenditure Account) For the year ended 31 December 2021**
|**Unrestricted**
**Funds**
**Note**
**2021**
**£**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
2
**92,305**
Charitable activities
5
**68,360**
Other trading activities
3
**198,860**
Investments
4
**65,503**
Other
6
**2,595**
**TOTAL**
**427,623**
**EXPENDITURE ON:**
Church and charitable activities
**340,506**
**TOTAL EXPENDITURE**
7
**340,506**
**87,117**
**NET MOVEMENT IN FUNDS**
**87,117**
**RECONCILIATION OF FUNDS:**
TOTAL FUNDS AT 1 JANUARY 2021
_182,396_
**TOTAL FUNDS AT 31 DECEMBER 2021**
**269,513**
**£ **
Net income/(expenditure)|**Restricted**
**Funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**20,000**
**20,000**
**(20,000)**
**(20,000)**
_3,444,875_
**3,424,875**
**£ **|**Total**
**Funds**
**2021**
**£**
**92,305**
**68,360**
**198,860**
**65,503**
**2,595**|_Unrestricted_
_& Total_
_2020_
_£_
_80,423_
_30,722_
_17,086_
_66,671_
_3,867_|
|---|---|---|---|
|||**427,623**|_198,769_|
|||**360,506**|_224,236_|
|||**360,506**|_224,236_|
|||**67,117**|_(25,467)_|
|||**67,117**
_3,627,271_|_(25,467)_
_3,652,738_|
|||**3,694,388**
**£ **|_3,627,271_
_£ _|
10
## **PARISH CHURCH OF ST MARK KENNINGTON**
## **BALANCE SHEET As at 31 December 2021**
|**Notes**
**Charity**
**2021**
**£**
**FIXED ASSETS**
Tangible assets
12
**#REF!**
Investments
13
**3,424,875**
**#REF!**
**CURRENT ASSETS**
Cash at bank and in hand
**275,393**
**CREDITORS: amounts falling due**
**within one year**
14
**(5,880)**
**NET CURRENT ASSETS**
**269,513**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**#REF!**
**TOTAL NET ASSETS**
**#REF!**
**#REF!**
**FUNDS**
Unrestricted funds:
Designated funds
15
**1,459,673**
General fund
15
**269,513**
**1,729,186**
Restricted funds
15
**1,965,202**
Endowment funds
15
**-**
**3,694,388**
**£ **|**Group**
_Charity_
**2021**
_2020_
**£**
_£_
**-**
_-_
**3,424,875**
_#REF!_
**3,424,875**
_#REF!_
**275,393**
_-_
**(5,880)**
_-_
**269,513**
_-_
**3,694,388**
_#REF!_
**3,694,388**
**£ **
_#REF!_
_#REF!_
**1,459,673**
_1,459,673_
**269,513**
_182,396_
**1,729,186**
_1,642,069_
**1,965,202**
_1,985,202_
**-**
_-_
**3,694,388**
**£ **
_3,627,271_
_£ _|_Group_
_2020_
_£_
_8,021_
_3,424,875_|
|---|---|---|
|||_3,432,896_|
|||_218,753_
_(24,378)_|
|||_194,375_|
|||_3,627,271_|
|||_3,627,271_
_£ _|
|||_1,459,673_
_182,396_|
|||_1,642,069_
_1,985,202_
-|
|||_3,627,271_
_£ _|
The financial statements have been prepared in accordance with the Financial Reporting Standard 102 relating to small entities.
The financial statements were approved, and authorised for issue, by the Board of Trustees on ________________ and signed on their behalf by:-
NICOLA GURUNG, Treasurer
XXX, Trustee
The annexed notes form part of these financial statements
11
**PARISH CHURCH OF ST MARK KENNINGTON**
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **1. ACCOUNTING POLICIES**
## _**Basis of preparation of financial statements**_
The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared under the historical cost convention, except for investment properties which are included at their fair value. They have been prepared in accordance with applicable United Kingdom accounting standards, the requirements of the Statement of Recommended Practice 'Accounting and Reporting by Charities' (SORP), in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) applicable to smaller entities and the Charities Act 2011. The presentational currency of the financial statements is Pound Sterling (£).
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. In preparing the accounts, restatement was required in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102.
## _**Cash Flow**_
The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under the FRS102.
## _**Fund accounting**_
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the Charity for particular purposes. The cost of administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Statutory grants which are given as contributions towards the Charity's core services are treated as unrestricted.
## _**Incoming resources**_
Revenue grants are credited to incoming resources on the earlier date of when they are received or when they are receivable, unless they relate to a specific future period, in which case they are deferred. All other incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Investment Income is recognised on an accruals basis.
Income tax recoverable in relation to investment income or Gift Aid donations is recognised at the time the relevant income is receivable.
Other income is included in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
12
**PARISH CHURCH OF ST MARK KENNINGTON**
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## _**Resources Expended**_
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Support costs, including governance costs, which cannot be directly attributed to particular activities, have been apportioned proportionately to the direct staff costs allocated to the activities. Governance costs include the costs of servicing Trustees' meetings, audit and strategic planning.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
## _**Value Added Tax**_
The Charity is not registered for VAT and accordingly, where applicable, all costs and expenditure incurred are inclusive of VAT.
## _**Investment Properties**_
Investment property is valued at market value at the balance sheet date. The fair value of the properties is reviewed annually and adjusted based on the condition of those properties as assessed by trustees.
## _**Tangible fixed assets and depreciation**_
All assets costing more than £500 are capitalised.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Furniture and equipment
-
4 years
## _**Debtors**_
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## _**Cash at bank and in hand**_
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## _**Creditors and provisions**_
Creditors and provisions are recognised where the charity has a present obligation resulting 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. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## _**Financial Instruments**_
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## _**Pensions**_
The charity is part of a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
13
**PARISH CHURCH OF ST MARK KENNINGTON**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## _**Judgements and key sources of estimation uncertainty**_
Judgements and key sources of estimation uncertainty are detailed in the above accounting policies, where applicable.
|**2.**
**DONATIONS AND LEGACIES**
**Unrestricted**
**Funds**
**2021**
**£**
Donations
**92,305**
**92,305**
**£ **
**3.**
**INCOME FROM OTHER TRADING ACTIVITIES**
**Unrestricted**
**Funds**
**2021**
**£**
Monty Hall hire income
**198,860**
**198,860**
**£ **
**4.**
**INVESTMENT INCOME**
**Unrestricted**
**Funds**
**2021**
**£**
Bank interest
**-**
Rental income (investment properties)
**65,503**
**65,503**
**£ **
**5.**
**INCOME FROM CHARITABLE ACTIVITIES**
**Unrestricted**
**Funds**
**2021**
**£**
Use of church and chambers
**66,423**
Service fees
**1,937**
**68,360**
**£ **|**Restricted**
**Funds**
**2021**
**£**
**-**
**Nil**
**£**
**Restricted**
**Funds**
**2021**
**£**
**-**
**Nil**
**£**
**Restricted**
**Funds**
**2021**
**£**
**-**
**-**
**Nil**
**£**
**Restricted**
**Funds**
**2021**
**£**
**-**
**-**
**Nil**
**£**|**Total**
**Funds**
**2021**
**£**
**92,305**
**92,305**
**£ **
**Total**
**Funds**
**2021**
**£**
**198,860**
**198,860**
**£ **
**Total**
**Funds**
**2021**
**£**
**-**
**65,503**
**65,503**
**£ **
**Total**
**Funds**
**2021**
**£**
**66,423**
**1,937**
**68,360**
**£ **|_Unrestricted_
_& Total_
_2020_
_£_
_80,423_|
|---|---|---|---|
||||_80,423_
_£ _|
||||_Unrestricted_
_& Total_
_2020_
_£_
_17,086_|
||||_17,086_
_£ _|
||||_Unrestricted_
_& Total_
_2020_
_£_
_830_
_65,841_|
||||_66,671_
_£ _|
||||_Unrestricted_
_& Total_
_2020_
_£_
_27,941_
_2,781_|
||||_30,722_
_£ _|
14
**PARISH CHURCH OF ST MARK KENNINGTON**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **6. OTHER INCOME**
|**Unrestricted**
**Funds**
**2021**
**£**
JRS income
**2,595**
**2,595**
**£ **
**7.**
**RESOURCES EXPENDED**
**Unrestricted**
**Funds**
**2021**
**£**
Church and charitable
activities
**259,747**
Staff costs
**80,759**
**340,506**
**£ **
Resources expended include:
Auditors’ remuneration:
Audit fee
Other services
Independent Examiners' fee
Depreciation
- on owned assets
**8.**
**CHURCH AND CHARITABLE ACTIVITIES**
**Unrestricted**
**Funds**
**2021**
**£**
Professional Consultancy
**-**
Church costs
**44,979**
Office costs
**8,175**
Montgomery Hall costs
**33,602**
Montgomery Hall repairs
**33,287**
Church Playground
**-**
Mission Giving
**11,974**
CAP costs
**5,592**
Ministry costs
**4,292**
Rental flat costs
**10,945**
Contribution to Diocese
**93,000**
Depreciation
**8,021**
Auditors' audit fee
**5,880**
**259,747**
**£ **|**Restricted**
**Funds**
**2021**
**£**
**-**
**Nil**
**£**
**Restricted**
**Funds**
**2021**
**£**
**20,000**
**-**
**20,000**
**£ **
**Restricted**
**Funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**-**
**20,000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**20,000**
**£ **|**Total**
**Funds**
**2021**
**£**
**2,595**
**2,595**
**£ **
**Total**
**2021**
**£**
**279,747**
**80,759**
**360,506**
**£ **
**2021**
**4,920**
**960**
**-**
**8,021**
**Total**
**2021**
**£**
**-**
**44,979**
**8,175**
**33,602**
**33,287**
**20,000**
**11,974**
**5,592**
**4,292**
**10,945**
**93,000**
**8,021**
**5,880**
**279,747**
**£ **|_Unrestricted_
_& Total_
_2020_
_£_
_3,867_|
|---|---|---|---|
||||_3,867_
_£ _|
||||_Unrestricted_
_& Total_
_2020_
_£_
_154,432_
_69,804_|
||||_224,236_
_£ _|
||||_2020_
_-_
_-_
_1,003_
**-**
_Unrestricted_
_& Total_
_2020_
_£_
_-_
_29,779_
_6,243_
_13,556_
_-_
_-_
_8,700_
_7,540_
_5,129_
_6,482_
_76,000_
_-_
_1,003_|
||||_154,432_
_£ _|
15
**PARISH CHURCH OF ST MARK KENNINGTON**
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **9. STAFF NUMBERS AND COSTS**
|Wages and salaries
Pension costs|**Unrestricted**
**Funds**
**2021**
**£**
**76,616**
**4,143**
**80,759**
**£ **|**Restricted**
**Funds**
**2021**
**£**
**-**
**-**
**Nil**
**£**|**Total**
**2021**
**£**
**76,616**
**4,143**
**80,759**
**£ **|_Unrestricted_
_& Total_
_2020_
_£_
_63,103_
_6,701_|
|---|---|---|---|---|
|||||_69,804_
_£ _|
No employee received remuneration of more than £60,000.
The key management personnel of the Charity are those persons having authority and responsibility for planning, directing and controlling the activities of the Charity, directly or indirectly, including any Trustee of the Charity. In addition to the Trustees, key management personnel includes the Principal Officers. Aggregate remuneration and benefits paid to key management personnel during the year amounted to £NIL (2020 - £NIL).
## **10. TRUSTEES REMUNERATION AND BENEFITS**
During the year, no members of the Board of Trustees received any remuneration as trustee of the charity (2020 - £NIL). Details of related parties, including salaries paid to trustees for their role as employee on arms length basis are reported in note 17.
No members of the Board of Trustees received reimbursement of expenses (2020 - £NIL).
## **11. Taxation**
Parish Church of St Mark Kennington is a registered charity and is potentially exempt from taxation in respect of income and capital gains received within the categories covered by Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to charitable purposes.
## **12. TANGIBLE FIXED ASSETS**
|**Cost**
At 1 January 2021 and 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2020|**Furniture**
**and**
**equipment**
**£**
**73,911**|
|---|---|
||**65,890**
**8,021**
**73,911**|
||_8,021_
_£ _|
16
**PARISH CHURCH OF ST MARK KENNINGTON**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **13. INVESTMENTS**
|**Cost**
At 1 January 2021
At 31 December 2021|**Investment**
**properties**
**£**
**3,424,875**|
|---|---|
||**3,424,875**
**£ **|
## **Investment properties are stated at the following fair values**
|**Investment properties are stated at the following fair values**
Montgomery Hall
Flat above Montgomery
1 Prima Road top floor flat
1 Prima Road ground floor flat
1 Prima Road upper basement flat|**2021**
**£**
**1,673,746**
**291,456**
**792,615**
**332,705**
**334,353**
**3,424,875**
**£ **|_2020_
_£_
_1,673,746_
_291,456_
_792,615_
_332,705_
_334,353_|
|---|---|---|
|||_3,424,875_
_£ _|
The properties are held by the Rochester and Southwark Diocesan Church Trust, as custodian trustees, on behalf of the PCC.
## **14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|**Charity**
**2021**
**£**
Deferred income
**-**
Accruals
**5,880**
**5,880**
**£ **
Deferred income
Balance at 1 January 2021
**-**
Amount released to incoming resources
**-**
Amount deferred in the year
**-**
Balance at 31 December 2021
**Nil**
**£**|**Group**
_Charity_
**2021**
_2020_
**£**
_£_
**-**
_-_
**5,880**
_-_
**5,880**
**£ **
_Nil_
_£_
**21,500**
**(21,500)**
_-_
**-**
_-_
**Nil**
**£**
_Nil_
_£_|_Group_
_2020_
_£_
_21,500_
_2,878_|
|---|---|---|
|||_24,378_
_£ _|
|||_-_
_21,500_|
|||_21,500_
_£ _|
17
**PARISH CHURCH OF ST MARK KENNINGTON**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **15. STATEMENT OF FUNDS**
|**Brought**
**Forward**
**£**
**DESIGNATED FUNDS**
Prima Road Funds
**1,459,673**
**1,459,673**
**£**
**RESTRICTED FUNDS**
Church Playground
**20,000**
Montgomery Hall Fund
**1,965,202**
**1,985,202**
**£**
**SUMMARY OF FUNDS**
Designated Funds
**1,459,673**
General Funds
**182,396**
**1,642,069**
Restricted Funds
**1,985,202**
**3,627,271**
**£**
**_Comparative statement of funds_**
**_Brought_**
**_Forward_**
**_£_**
**_DESIGNATED FUNDS_**
_Prima Road Funds_
**_1,459,673_**
**_1,459,673_**
**_£_**
**_RESTRICTED FUNDS_**
_Church Playground_
**_20,000_**
_Montgomery Hall Fund_
**_1,965,202_**
**_1,985,202_**
**_£_**
**_SUMMARY OF FUNDS_**
_Designated Funds_
**_1,459,673_**
_General Funds_
**_207,863_**
**_1,667,536_**
_Restricted Funds_
**_1,985,202_**
**_3,652,738_**
**_£_**|**Incoming**
**Resources**
**£**
**-**
**Nil**
**£**
**-**
**-**
**Nil**
**£**
**-**
**427,623**
**427,623**
**-**
**427,623**
**£ **
**_Incoming_**
**_Resources_**
**_£_**
**_-_**
**_Nil_**
**_£_**
**_-_**
**_-_**
**_Nil_**
**_£_**
**_-_**
**_198,769_**
**_198,769_**
**_-_**
**_198,769_**
**_£ _**|**Transfers and**
**Resources**
**investment**
**Expended gains/(losses)**
**£**
**£**
**-**
**-**
**Nil**
**£**
**Nil**
**£**
**(20,000)**
**-**
**-**
**-**
**(20,000)**
**£**
**Nil**
**£**
**-**
**-**
**(340,506)**
**-**
**(340,506)**
**-**
**(20,000)**
**-**
**(360,506)**
**£**
**Nil**
**£**
**_Transfers and_**
**_Resources_**
**_investment_**
**_Expended gains/(losses)_**
**_£_**
**_£_**
**_-_**
**_-_**
**_Nil_**
**_£_**
**_Nil_**
**_£_**
**_-_**
**_-_**
**_-_**
**_-_**
**_Nil_**
**_£_**
**_Nil_**
**_£_**
**_-_**
**_-_**
**_(224,236)_**
**_-_**
**_(224,236)_**
**_-_**
**_-_**
**_-_**
**_(224,236)_**
**_£_**
**_Nil_**
**_£_**|**Carried**
**Forward**
**£**
**1,459,673**|
|---|---|---|---|
||||**1,459,673**
**£**|
||||**-**
**1,965,202**|
||||**1,965,202**
**£**|
||||**1,459,673**
**269,513**|
||||**1,729,186**
**1,965,202**|
||||**1,965,202**
**£**|
||||**_Carried_**
**_Forward_**
**_£_**
**_1,459,673_**|
||||**_1,459,673_**
**_£_**|
||||**_20,000_**
**_1,965,202_**|
||||**_1,985,202_**
**_£_**|
||||**_1,459,673_**
**_182,396_**|
||||**_1,642,069_**
**_1,985,202_**|
||||**_1,985,202_**
**_£_**|
18
**PARISH CHURCH OF ST MARK KENNINGTON**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**Unrestricted Funds**
**Designated**
**General**
**Funds**
**Funds**
**£**
**£**
Fixed asset investments
**1,459,673**
**-**
Net current assets
**-**
**269,513**
**1,459,673**
**£ **
**269,513**
**£ **
**_Comparative analysis of net assets between funds_**
**_Unrestricted Funds_**
**_Designated_**
**_General_**
**_Funds_**
**_Funds_**
**_£_**
**_£_**
_Tangible fixed assets_
**_-_**
**_8,021_**
_Fixed asset investments_
**_1,459,673_**
**_-_**
_Net current assets_
**_-_**
**_174,375_**
**_1,459,673_**
**_£ _**
**_182,396_**
**_£ _**|**Restricted**
**Funds**
**£**
**1,965,202**
**-**
**1,965,202**
**£ **
**_Restricted_**
**_Funds_**
**_£_**
**_-_**
**_1,965,202_**
**_20,000_**
**_1,985,202_**
**_£ _**|**Total**
**Funds**
**£**
**3,424,875**
**269,513**|
|---|---|---|
|||**3,688,508**
**£ **|
|||**_Total_**
**_Funds_**
**_£_**
**_8,021_**
**_3,424,875_**
**_194,375_**|
|||**_3,602,893_**
**_£ _**|
## **17. RELATED PARTIES**
The PCC contributed £93,000 this year to the Diocese (Parish Support Fund) to assist in the provision of services of the incumbent Vicar to St Mark and other Parish resources.
The PCC employ spouse of Kojo Odiasempa, trustee, as part time youth worker and part time church administrator . Total remuneration paid to her during 2021 amounted to £25,704.
Cherie Thomas, PCC secretary and trustee, is employed by the PCC as part time CAP Ministry officer and part time Lambeth Age UK Health champion. Total remuneration for these services during 2021 amounted To £16,608.
Samuel Johns, a trustee, rents an apartment in Montgomery Hall. He paid rent of £10,800 during 2021. The trustees consider that the rent is set on the commerical value of the property.
19
**PARISH CHURCH OF ST MARK KENNINGTON**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **18. Prior Year Adjustment**
A prior year adjustment has been made to comply with the revision to FRS102 which requires investment properties to be disclosed at fair values. The comparative figures for the year ended 31 December 2020 have been restated accordingly. The changes made have been set out below:
## **Change in reserves as at 31 December 2019**
|**Designated**
**Funds**
**£**
Funds at 31 December 2019
as originally stated
-
Restatment of opening funds for fair values
of the properties at 31 December 2019
1,459,673
(See below)
Revised funds as at 31 December 2019
1,459,673
£|**General**
**Funds**
**£**
213,398
(5,535)
207,863
£|**Restricted**
**Funds**
**£**
1,999,549
(14,347)
1,985,202
£|**Total**
**Funds**
**£**
2,212,947
1,439,791|
|---|---|---|---|
||||3,652,738
£|
## **Change in fair values of properties as at 31 December 2019**
|**Original value**
**as at 31**
**December 2019**
**£**
Montgomery Hall & flat
1,673,746
1 Prima Road properties
311,338
1,985,084
£
**Change in reserves as at 31 December 2020**
**Designated**
**Funds**
**£**
Funds at 31 December 2020
as originally stated
-
Restatment of opening funds for fair values
of the properties at 31 December 2020
1,459,673
(See below)
Revised funds as at 31 December 2020
1,459,673
£|**Restatement**
**for**
**fair values**
**£**
291,456
1,148,335
1,439,791
£
**General**
**Funds**
**£**
187,933
(5,535)
182,398
£|**Revised value**
**as at 31**
**December 2019**
**£**
1,965,202
1,459,673
3,424,875
£
**Restricted**
**Total**
**Funds**
**Funds**
**£**
**£**
1,999,549
2,187,482
(14,347)
1,439,791
1,985,202
£
3,627,273
£|**Revised value**
**as at 31**
**December 2019**
**£**
1,965,202
1,459,673
3,424,875
£
**Restricted**
**Total**
**Funds**
**Funds**
**£**
**£**
1,999,549
2,187,482
(14,347)
1,439,791
1,985,202
£
3,627,273
£|
|---|---|---|---|
||||3,424,875
£|
||||**Total**
**Funds**
**£**
2,187,482
1,439,791|
||||3,627,273
£|
20
**PARISH CHURCH OF ST MARK KENNINGTON**
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **Change in fair values of properties as at 31 December 2020**
|Montgomery Hall & flat
1 Prima Road properties|**Original**
**value**
**£**
1,673,746
311,338
1,985,084
£|**Restatement**
**for**
**fair values**
**£**
291,456
1,148,335
1,439,791
£|**Revised**
**value**
**£**
1,965,202
1,459,673|
|---|---|---|---|
||||3,424,875
£|
21