**St James’s Church, New Barnet**
**Trustees’ Report and Financial Statements**
**for the year ending 31[st] December 2021**
Trustees’ Report and Financial Statements for the year ending 31/12/2021
## **Contents**
Contents ........................................................................................................................................................................ 2 Trustees’ Report ........................................................................................................................................................... 2 Objectives and Activities ........................................................................................................................................... 2 Achievements and Performance ............................................................................................................................... 2 Financial Review ....................................................................................................................................................... 2 Summary ............................................................................................................................................................... 2 Income ................................................................................................................................................................... 3 Expenditure ........................................................................................................................................................... 3 Cash ...................................................................................................................................................................... 3 Reserves Policy ..................................................................................................................................................... 3 Structure, Governance and Management ................................................................................................................. 4 Reference and Administrative Details ....................................................................................................................... 4 Statement Of Financial Activities .................................................................................................................................. 5 Balance Sheet............................................................................................................................................................... 6 Income and Expenditure ............................................................................................................................................... 7 Notes to the Accounts ................................................................................................................................................... 9 Independent Examiner’s Report ................................................................................................................................. 12
## **Trustees’ Report**
## **Objectives and Activities**
In accordance with St James’s Church’s charity registration and its position as part of the Church of England, its key activities are
- PROVIDING REGULAR PUBLIC WORSHIP OPEN TO ALL AND
- PROVIDING SERVICES TO THE COMMUNITY.
Youth and children’s work has long been a major focus of the work and continues to be so. A Youth and Children’s pastor has been employed since 2012 and the PCC hopes to continue this in the years ahead, provided funding is available.
## **Achievements and Performance**
Since March 2020, the programme of events has been severely affected by the pandemic. Throughout 2021, government restrictions fluctuated in their severity but permitted church services to take place. The number of members present in the church building was low at the beginning of the year but gradually increased throughout the year, with others joining online or on the phone via Zoom. Youth and children’s events, together with many smaller meetings, social events and prayer ministry, restarted in person during the course of the year, with a few also continuing online.
Throughout the pandemic, the church’s leaders have made especial efforts to ensure that members are supported, providing practical help especially to the elderly and vulnerable.
## **Financial Review**
## **Summary**
2021 was another challenging financial year for St James’s due to the continuing effects of the Pandemic. As in 2020 we lost significant rental income from KidzChoice nursery because of the impact the pandemic has had on them.
St James’s Church, New Barnet
2
Trustees’ Report and Financial Statements for the year ending 31/12/2021
However, God has blessed us with extra income in several areas, including receiving grants and generous giving from congregation members. We have also been able to reduce expenditure in some areas.
Although we had a surplus for the year of just over £20,000, this was largely due to grants and a compensation payout for past income lost to fraud. As these were all one-off payments, we can’t assume that we will continue to receive surpluses in future years, and so will continue to be careful in our spending. However, we are very grateful for this one-off extra income which should help us to continue all our community work despite the likely national financial uncertainty over the next few years.
## **Income**
Our income in 2021 was £146,411, a reduction of about £30,000 from 2020. This decrease was largely due to a change in accounting treatment which changed how we recognized the rental income in 2021 compared to 2020. This led to a reduction in income in 2021, but also a reduction in expenditure of a similar amount, so the effect on the overall surplus was minimal.
Here is a breakdown of our 2021 income:
**----- Start of picture text -----**
Youth groups, Compensation
funeral fees & payout & bank
church shop, interest, £9,302
£1,384
Rental
income &
room hire,
£42,205
Congregational
giving & sundry
Income from
donations,
grants, £10,250 Gift day, £14,700 £68,570
**----- End of picture text -----**
## **Expenditure**
Our expenditure in 2021 was £125,826. This was a significant decrease from 2020 but this was largely due to the change of accounting treatment for KidzChoice income described above, rather than a significant reduction in actual spending.
As in most years, a significant part of our expenditure was the parish share (our contribution to the Diocese of St Albans, which in turn pays Rev Canon Laura’s stipend and supports the church in many other ways). Our parish share was paid in full in 2021 and 2020, despite the difficult financial conditions. The main area where savings were achieved was repairs and maintenance where 2021 costs were around £12,000 less than in 2020. However, it is likely we will have to invest more heavily in repairs and maintenance of the church building in future years to keep the building in a good state of repair.
## **Cash**
As always, we aim to maintain a healthy cash balance throughout the year to make sure we are able to deal with any unexpected dips in income. We were able to maintain this for 2021 and 2020.
## **Reserves Policy**
The free reserves are the total funds available to the PCC, excluding funds tied up in our rental property in Victoria Road and funds designated to be used on specific items.
It is the PCC’s policy to:
- keep three months' running costs (approximately £30,000) in free reserves to cover essential expenditure in the event of loss of income
- save up funds in a 'salaries and major projects reserve' to cover unexpected fabric repairs and other large projects and to ensure salaries can be paid during a low patch
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
Our free reserves are currently higher than the target of £30,000 (at 31 December 2021 they stood at £44,549, which is very similar to the previous year). We feel it is appropriate to keep the reserves higher than £30,000 at the current time to allow us to continue to provide our community services and outreach, despite the expected financial downturn in the coming years. We have also been able to designate £20,000 to the salaries and major projects reserve, on top of the free reserves.
## **Structure, Governance and Management**
St James’s Parochial Church Council (PCC) is a corporate body established by the Church of England and operating under the Parochial Church Council Powers Measure.
It is registered as a charity in England as “The parochial church council of the ecclesiastical parish of St James New Barnet”, also known as “St James PCC, New Barnet”. Its registered charity number is 1150299.
Individuals become members of the PCC (in accordance with the Church Representation Rules):
- by virtue of their office within the church (vicar and churchwardens)
- by membership of certain other ecclesiastical bodies (e.g. Barnet Deanery Synod)
- by direct election by members of the church (those on the Church Electoral Roll).
On appointment or election to the PCC, all members automatically become trustees of the charity.
As well as constituting the charity trustees, the PCC is the overall management committee of the church. It has the following sub-committees:
- Standing Committee – which is empowered to take urgent decisions between normal PCC meetings.
- Ministry Leaders Team – which works with the vicar to ensure that the spiritual life of the church is continually developing.
- Fabric Team – which deals with practical matters, including maintenance of the church building and other church-owned premises.
- Finance Team – which, under the leadership of the treasurer, aims to establish and maintain best practice in all aspects of financial management.
- Home and Overseas Mission Team – which provides support for, and education about, Christian mission beyond St James’s.
## **Reference and Administrative Details**
The following served as trustees (and as members of the PCC) in the period from the start of the reporting period (1 Jan 2021) to the date of the 2022 Annual Parochial Church Meeting (May 2022).
Rev Canon Laura Hewitt (vicar and chair) Uzor Monu (from APCM 2021) Koye Akinjogbin (until APCM 2021) Keisha Murdock Carol Connah (churchwarden & lay vice chair) Simon Perera Luke Cowles (churchwarden from April 2021) Paul Robinson Alice Femi-Pearse Jackie Seiwaa (from APCM 2021) Zoe Jones (treasurer) Ros Thompson (secretary) Rosemary Leaver (deanery synod rep) Simon Vincent (until APCM 2021) Alun Matthews
**Registered Office** : St. James's Church, 71 East Barnet Road, New Barnet, EN4 8RN **Bankers** : Barclays Bank PLC, 1250 High Road, Whetstone, London, N20 OPB **Independent Examiner** : Mr D Watson ACIB, 24 Ventnor Drive, Totteridge, London, N20 8BP
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
## **Statement Of Financial Activities**
|note
**INCOME**
Donations and grants
Charitable Activities
Trading Activities
Other Income
**Total INCOME**
**EXPENDITURE**
Charitable Giving
Service Costs
Church Ministry
Employee Costs
2,7
Fabric
Administration
Fundraising Costs
**Total EXPENDITURE**
**NET RESOURCES**
**TRANSFERS BETWEEN FUNDS**
**NET MOVEMENT IN FUNDS**
**BALANCES BROUGHT FORWARD**
**BALANCES CARRIED FORWARD**|2021
Restricted
£
13,350
-
-
-
13,350
1,450
-
10,824
178
1,429
239
-
14,120
(770)
-
(770)
6,063
5,293|2021
Unrestricted
£
80,170
1,384
42,205
9,302
133,061
1,400
1,682
60,547
31,985
10,451
4,552
1,089
111,706
21,355
-
21,355
208,944
230,299|2021 Total
£
93,520
1,384
42,205
9,302
146,411
2,850
1,682
71,371
32,163
11,880
4,791
1,089
125,826
20,585
-
20,585
215,007
235,592|2020
£
101,172
3,651
63,701
10,023|
|---|---|---|---|---|
|||||178,547|
|||||1,871
1,783
58,662
31,046
24,979
4,030
21,199|
|||||143,570|
|||||34,977
-|
|||||34,977
180,030|
|||||215,007|
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
## **Balance Sheet**
|**ASSETS**
note
Fixed Assets
Buildings - 159 Victoria Road
3
**_Totals_**
Current Assets
Cash at bank
Cash in hand
Stock
Debtors - trade
Debtors - other
Debtors - Gift Aid tax claim
**_Totals_**
Less Creditors
Trade creditors
Other creditors
Deferred income
**_Totals_**
**NET CURRENT ASSETS**
**NET ASSETS**
**FUNDS**
note
Restricted Funds
4
Hardship Fund
Jim’s Fund
Youth Work Fund
Other Restricted Funds
**_Totals_**
Designated Funds
5
Charitable giving
Youth work designated
Buildings Reserve
Salaries & major projects
**_Totals_**
Other Funds
5
Free Reserves
**_Totals_**
**FUNDS TOTALS**|2021
£
160,000
160,000
64,028
468
1,400
6,130
3,900
10,822
86,748
(152)
(10,824)
(180)
(11,156)
75,592
235,592
2021
£
835
3,112
613
733
5,293
4,750
1,000
160,000
20,000
185,750
44,549
44,549
235,592|2020
£
160,000|
|---|---|---|
|||160,000|
|||47,792
660
1,400
7,780
3,461
6,017|
|||67,110|
|||(554)
(11,549)
-|
|||(12,103)|
|||55,007|
|||215,007|
|||2020
£
1,338
3,623
500
602|
|||6,063|
|||4,150
1,000
160,000
-|
|||165,150|
|||43,794|
|||43,794|
|||215,007|
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
## **Income and Expenditure**
|**INCOME**
2021
note
£
Donations and grants
General giving
53,871
Tax recovered on general giving
11,732
Gift Day income
12,275
Tax recovered on Gift Day
2,425
Grants
10,250
Other donations
1,470
Tax recovered on restricted donations
137
Collections for other charities
961
Church event donations
399
**_Totals_**
93,520
Charitable Activities
Youth & children events subs
673
Wedding & Funeral Fees
299
Church shop income
412
Miscellanous other Income
-
**_Totals_**
1,384
Trading Activities
Nursery rental
24,000
159 Victoria Road rent
18,000
Church room hire
60
Other sales income
145
**_Totals_**
42,205
Other Income
Interest etc received
5
Insurance payout
-
Compensation received
9,297
**_Totals_**
9,302
**INCOME TOTALS**
146,411|2020
£
52,458
15,087
11,848
2,489
15,710
3,110
125
50
295|
|---|---|
||101,172|
||3,113
213
311
14|
||3,651|
||44,681
18,000
1,020
-|
||63,701|
||23
10,000
-|
||10,023|
||178,547|
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
|**EXPENDITURE**
2021
note
£
Charitable Giving
Church Charitable Giving
1,400
Other Charities’ Collections
830
Hardship fund payments
620
**_Totals_**
2,850
Service Costs
Service costs
556
Refreshments
179
PA & Music
947
**_Totals_**
1,682
Church Ministry
Parish Share
68,199
Discipleship events
78
Youth groups
408
Outreach events
732
"Jim's"
702
Vicar's Expenses
7
184
Conferences & Training
64
Gifts to Church Members
666
Cost of Shop Goods
338
**_Totals_**
71,371
Employee Costs
2,7
Salaries
31,260
Pensions and National Insurance
903
**_Totals_**
32,163
Fabric
Repairs & Maintenance
1,195
Health & Safety & Security
1,080
Church cleaning
1,362
Church Insurance
2,554
Electricity & gas & water
5,689
**_Totals_**
11,880
Administration
Photocopier expenses
1,704
Other office costs
1,034
IT & software
1,393
Bank fees & interest etc
397
Miscellaneous Expenses
263
**_Totals_**
4,791
Fundraising Costs
159 Victoria Road insurance & maintenance
1,089
Bad Debt Expense
-
**_Totals_**
1,089
**EXPENDITURE TOTALS**
125,826
**SURPLUS / (DEFICIT)**
20,585|2020
£
550
147
1,174|
|---|---|
||1,871|
||419
365
999|
||1,783|
||56,280
61
495
566
307
39
355
478
81|
||58,662|
||30,186
860|
||31,046|
||12,894
1,033
2,280
2,526
6,246|
||24,979|
||1,502
814
910
364
440|
||4,030|
||830
20,369|
||21,199|
||143,570|
||34,977|
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
## **Notes to the Accounts**
## **1. Accounting Policies**
## a) Basis of Accounting
The accounts have been prepared under the historical cost convention, and 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; the Financial reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102); the Charities Act 2011; and UK Generally Accepted Practice as it applies from 1 January 2015.
The charity constitutes a public benefit entity as defined by FRS102.
## b) Recognition of income
Income is included in the Statement of Financial Activities when the charity becomes entitled to the resources, it is more likely than not that the charity will receive the resources and the monetary value can be measured with sufficient reliability.
## c) Incoming resources
Donations and grants are included in the accounts when the general income criteria are met. When donors specify they are to be used for a future accounting period they are treated as deferred income. Contributions, fees and tax recoverable from the Inland Revenue under the Gift Aid scheme are recognised on an accruals basis when there is a valid declaration from the donor.
## d) Resources Expended
Expenditure is accounted for on an accruals basis, inclusive of VAT, which cannot be recovered.
- e) Capitalisation and Depreciation
All fixed assets are initially recorded at cost.
Tangible fixed assets costing more than £1,500 are capitalised in the accounts.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Office Equipment – computers 50% straight line, other equipment 25% straight line.
Property – the property is not depreciated as the PCC believes the current market value of the property is significantly higher than the valuation in the accounts.
## f) Stocks
Stocks held for resale are measured at the lower of cost or net realisable value.
## g) Pensions
St. James's PCC contributes to a defined contribution pension scheme on behalf of employees, the cost of which is disclosed in the detailed income and expenditure account.
## h) Funds accounting
Funds held by the charity are:
- Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
- Unrestricted designated funds – these are funds which the PCC has designated for specific purposes, as set out in note 5.
- Restricted funds – these are funds which can only be used for particular purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. The nature and purpose of each fund is explained further in the notes to the accounts.
## **2. Staff Costs**
a) Employment costs are as specified in the detailed income and expenditure.
b) 3 people were employed by the charity during the year of which 2 were part-time and the other was full-time (2020 – 2 people of which 1 was part-time and the other was full time).
- c) No employee earned more than £60,000 during the year (2020 – nil).
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
## **3. Fixed Assets**
The only fixed asset is an investment property in Victoria Road. No depreciation has been applied to this property because the PCC believes the current market value of the property is significantly higher than the current valuation. This valuation was made several years ago.
## **4. Restricted Funds**
|Youth & Children’s
work fund
Special collections
Jim’s café fund
Hardship fund
Other|**1 Jan 2021**
£
500
550
3,623
1,338
52
**6,063**|
**Income**
£
234
961
2,038
117
10,000
**13,350**|**Expenditure**
£
121
830
2,549
620
10,000
**14,120**|
**Transfers**
**between funds**
£
-
-
-
-
-
**-**|**31 Dec 2021**
£
613
681
3,112
835
52|
|---|---|---|---|---|---|
||||||
**5,293**|
The youth and children’s work fund consists of grants and donations given to pay for the youth and children’s work at St James's. This fund contains some donations to be used for any costs relating to youth and children's work and some for specific elements of youth and children’s work.
The special collections fund consists of special collections the church ran for other charities or mission activities. These funds can only be spent on the purpose each collection was advertised as being for.
The Jim's café fund consists of donations for the costs of the social action café run by St James's called Jim's café.
The hardship fund consists of donations to be given to members of the congregation, or others known to the church, who are in particular financial hardship or have a particular financial crisis.
The other restricted fund is for other small donations given for specific causes such as the Homeless Night Shelter which St James's participates in.
## **5. Unrestricted Funds**
|Free reserves
Designated fabric
fund
Designated
charitable fund
Designated youth
work fund
Designated salaries
and major projects
fund
Designated building
reserve|**1 Jan 2021**
£
43,794
-
4,150
1,000
-
160,000
**208,944**|
**Income**
£
133,061
-
-
-
-
-
**133,061**|**Expenditure**
£
111,706
-
-
-
-
-
**111,706**|
**Transfers**
**between funds**
£
(20,600)
-
600
-
20,000
-
**-**|**31 Dec 2021**
£
44,549
-
4,750
1,000
20,000
160,000|
|---|---|---|---|---|---|
||||||
**230,299**|
The designated fabric fund is a fund which is designated by the PCC to be used for repairs and maintenance of the church building.
The designated charitable fund is reserves which the PCC has decided to donate to other charities as charitable giving.
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## Trustees’ Report and Financial Statements for the year ending 31/12/2021
The designated youth work fund is reserves designated by the PCC to either a youth work trip or general youth work.
The designated salaries and major projects fund is to support key areas of mission, including salaries, during a period of growth in Jim’s and anticipated financial hardship in the country.
The designated buildings reserve is the total of the charity’s reserves which are tied up in the church’s property in Victoria Road. Therefore, these reserves can’t be spent unless the property is sold.
## **6. Analysis of Net Assets (between restricted and unrestricted funds)**
|Restricted
Unrestricted:
Free reserves
Designated fund – buildings reserve
Designated fund – fabric reserve
Designated fund – charitable giving reserve
Designated fund – salaries and major projects
Designated fund – youth work reserve|**Tangible fixed**
**assets**
£
-
-
160,000
-
-
-
-
**160,000**|**Other net**
**assets**
£
5,293
44,549
-
-
4,750
20,000
1,000
**75,592**|**Total**
£
5,293
44,549
160,000
-
4,750
20,000
1,000|
|---|---|---|---|
||||**235,592**|
## **7. Transactions with Trustees and Related parties**
**Trustees’ Remuneration & Benefits:** None of the trustees have been paid any remuneration or received any other benefits from being employed as a trustee with the charity or a related entity. One trustee, Paul Robinson, received a salary from St James’s for his job as Youth and Children’s Worker for St James’s. In 2021 this salary was £20,706 with employer pension contributions of £723 (2020: salary of £19,300 with employer pension contributions of £704). Paul Robinson received no remuneration for being a trustee and no expenses apart from reimbursement of out of pocket expenses. Paul Robinson also excuses himself from any discussions or votes relating to salaries or employment policies at PCC meetings.
**Trustees’ Expenses:** The Rev Canon Laura Hewitt was paid expenses of £184 (2020 - £39). These expenses were all wholly related to her duties as Vicar of St James’s Church.
**Transactions with Related Parties:** The PCC is not aware of any other related party transactions in 2021 or 2020.
## **8. Fees for Examination of the Accounts**
The fee for the Independent Examiner has not yet been finalised for the examination of the 2021 accounts but an accrual of £250 has been set up for this fee (2020 – £250).
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Trustees’ Report and Financial Statements for the year ending 31/12/2021
## **Independent Examiner’s Report**
## **Report to the Parochial Church Council of the Ecclesiastical Parish of St James New Barnet. Charity Number 1150299**
I report to the trustees on my examination of the accounts of the above charity (“the PCC”) for the year ended 31 December 2021, set out on pages 5 to 11.
## **Responsibilities and Basis of Report**
As the charity's trustees, you, are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the PCC’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination.
I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I confirm that I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
24 Ventnor Drive Totteridge London N20 8BP
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