## **St Mary’s Church Hornsey Rise End of Year Financial Statements Year ending 31 December 2022** ## **Parish of St Mary’s Church, Hornsey Rise Vicar’s Report For The Year Ending 31[st ] December 2022** ## **Administrative Information** The Church of England parish of St Mary’s Hornsey Rise is part of the Deanery of Islington within the Episcopal Area of Stepney within the Diocese of London. The correspondence address is St Mary’s Vicarage, 3 Highcroft Road, London N19 3AQ. The PCC is a registered charity (No. 1150821). ## **Structure, Governance and Management** There is a Parochial Church Council (PCC) to govern the parish. The method of appointment of PCC members is set out in the church representation rules. All church attendees are encouraged to register on the electoral roll and stand for election to the PCC. There are 66 members on the church electoral roll (as at 31[st ] December 2022), an increase of 10 on the previous year. This increase reflects those who moved away or died in the preceding year and those who joined the church electoral roll. ## **Objectives and Activities** St Mary’s PCC has responsibility of cooperating with the incumbent, the Reverend Tamsin Merchant, in promoting in the ecclesiastical parish the whole mission of the church – pastoral, evangelistic, social and ecumenical. The PCC is also specifically responsible for the maintenance of the Church and Hall of St Mary. Ashley Road, London N19 3AD. The PCC is committed to enabling as many people as possible to worship at our church and to become part of our parish community at St. Mary’s. The PCC maintains an overview of worship throughout the parish and makes suggestions on how our services can involve the many groups that live within our parish. Our services and worship seek to put faith into practice through prayer and scripture, music and sacrament. When planning our activities for the year, we have considered the Commission’s guidance on public benefit and, in particular, the supplementary guidance on charities for the advancement of religion. In particular, we try to enable ordinary people to live out their faith as part of our parish community through: - Worship and prayer; learning about the Gospel; and developing their knowledge and trust in Jesus. - Provision of pastoral care for people living in the parish. - Missionary and outreach work. To facilitate this work it is important that we maintain the fabric of the Church of St. Mary’s and the Church Hall. The members of St Mary’s PCC during the period 1 January – 31 December 2022 were: Reverend Tamsin Merchant (Chair), Rev Rob Merchant, Elaine Clarke (Churchwarden), Joanne James (Churchwarden), Poppy Pickard (Deanery Representative), Susan Mgbada, James Hodgkin, Suzy Lee, Cheryl Bennett (Parish Safeguarding Officer), Faithlyn Strong (PCC Secretary), Duncan Strong, June Scott, Yvonne Watson, Victoria Ward (from May 2022). 6 meetings were held in the period January to December 2022: on - Love Your Neighbour: Baby boutique, Tollyrise Happiness Garden approval of partnership with Hornsey Lane Community Centre to develop the church garden, cook together and create together. - Development of our vision ‘come as you are and do what you can’, with actions within the Diocesan vision of Confident Disciples, Compassionate Communities and Creative Growth. - Continuation of Emily Howarth as Ordinand on placement training at St Mellitus - Purchase of more chairs thanks to the support of Cloudesley Charity. - Partnership with Make Do Play who will lead a toddler group in the garden, that is free to access and on a Thursday. - Appointment of an administrator 8 hours a week for 6 months, and the leaving of our volunteer co-ordinator. - Training of volunteers, and the scheduling of new first aid and mental first aid training to be completed in 2023. - Worship and Children and Youth work in Sunday services. - Safeguarding of children, young people and vulnerable adults, training and DBS checks and the new safeguarding dashboard introduced to all churches in London Diocese. - Buildings and infrastructure – a tower survey was undertaken and we are in the process of securing netting and then fundraising for the repairs. The sliding doors in the main entrance are not possible due to various Health and Safety issues. - Considering the church financial position and agreeing the accounts - Charitable tithe giving – and allocation of partners and shares ## **Financial Review & Reserves Policy** The PCC reviews the cash flow and financial situation of the church regularly. Total receipts on unrestricted funds were £126,563 of which £50,642 came from unrestricted voluntary donations, ongoing activities and gift aid recovery. The Church Hall and house at 6, Zoffany Street continue to be let, providing a gross income of £46,924 while St Mary’s share of the income from the former St Peter’s parish buildings amounted to £21,947. Total income including grants was £155,790 compared with £238,913 in 2021: the reduction is due to gifts to the Love Your Neighbour fund in 2021, which were spent in 2021 and some in 2022 and building grants towards the Solar & Roof Project in the hall also to be spent in 2021. Major items of expenditure, included St Mary’s contribution to the Diocesan Common Fund which supports clergy and the work of the Church of England in London, and gifts to three Christian charities spreading the Gospel message by working for people in need around the world. The PCC continued allocating one quarter of the ‘tithe’ (10% of the unrestricted church income) to Christian initiatives in Islington. ## **Reserves Policy** The PCC is expected to establish and disclose its policy on reserves. Reserves are defined as that part of the PCC’s income that is freely available. This therefore excludes permanent or expendable endowment funds, restricted income funds, and any part of unrestricted funds which is not currently available for spending. The opinion of the PCC is that the reserves should be held at a level that will allow between one and two months’ contractual expenditure to be met at any time. This implies an uncommitted reserve of between £10,000 and £20,000. The church entered 2023 with uncommitted cash reserves (bank balances) of around £63,000. By the end of the year these had fallen to £60,388. Church income is such that income surpluses do not normally arise. In the event that such a circumstance does occur the PCC will consider the use of a surplus in the light of their overall financial position. ## **Approved by the PCC on 18th May 2023** Signed by **Revd Tamsin Merchant (Vicar)** ## **St Mary’s Church Hornsey Rise** **End of Year Financial Statements** **Year ending 31[st] December 2022** ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ST MARY’S CHURCH, HORNSEY RISE. N19** I report on the accounts for the year ended 31st December 2022 set out on pages 2 to 8. ## **Respective responsibilities of trustees and examiner** The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under Section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required. It is my responsibility to: - examine the accounts under Section 145 of the 2011 Act - to follow the procedures laid down in the General Directions given by the Charity Commission (under Section 145(5)(b) of the 2011 Act); and - to state whether particular matters have come to my attention. ## **Basis of the independent examiner's report** My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented 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 statements below. ## **Independent examiner's statement** In connection with my examination, no matter has come to my attention: - (1) which gives me reasonable cause to believe that, in any material respect, the requirements - to keep accounting records in accordance with Section 130 of the 2011 Act; and - to prepare accounts which accord with the accounting records and to 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. Rev. David M Green FCA Gowers Limited Chartered Accountants The Old School House Bridge Road Hunton Bridge Kings Langley Herts WD4 8SZ 19th May 2023 _Page 1_ ## **St Mary's Church, Hornsey Rise N19 Statement of Financial Activities For the period from 01 January 2022 to 31 December 2022** |
|**Unrestricted**
**Designated**
**Restricted**
**Endowment**
**Total**
**Prior year**
**funds**
**funds**
**funds**
**funds**
**funds**
**total funds**
**_Receipts_**
Planned giving
31,991
—
—
—
31,991
25,674
Collections and other giving
3,379
—
—
—
3,379
3,498
Other voluntary receipts
10,432
3,660
2,040
—
16,132
82,039
Other trading activities
32,709
—
1,735
—
34,444
24,906
Gift Aid recovered
4,021
—
—
—
4,021
23,926
Investments
21,947
—
—
—
21,947
16,561
Other receipts
21,265
—
—
—
21,265
9,253
Receipts from church activities
819
—
—
—
819
864
Love Your Neighbour Project Receipts
—
—
21,792
—
21,792
52,192
**Total income**
**126,563**
**3,660**
**25,567**
**—**
**155,790**
**238,913**
**_Payments_**
Missionary and Charitable Giving
10,325
—
—
—
10,325
5,550
Parish Share
70,000
—
—
—
70,000
68,000
Clergy and Staffing costs
4,964
—
—
—
4,964
6,057
Church Running Expenses
29,599
365
11,068
—
41,032
34,312
Activities directly related to Church work
4,959
12,018
5,579
—
25,278
10,820
Hall Running Costs
9,060
7,140
—
—
16,200
5,816
Church Repairs & Maintenance
1,022
—
5,136
—
6,158
41,270
Hall Repairs & Maintenance
—
—
—
—
—
1,584
New Building work
—
—
—
—
—
—
Zoffany St Costs & Charges
959
—
—
—
959
4,751
Zoffany St Repairs & Maintenance
720
—
—
—
720
13,549
Love Your Neighbour Project Expenses
—
—
16,126
—
16,126
56,044
**Total expenditure**
**131,609**
**19,523**
**37,909**
**—**
**191,762**
**247,753**
**Net income / (expenditure) resources before transfer**
**(5,046)**
**(15,863)**
**(12,342)**
**—**
**(35,972)**
**(8,841)**
**_Transfers_**
Gross transfers between funds - in
8,164
298
17,378
—
25,841
71,511
Gross transfers between funds - out
(8,164)
(1,050)
(16,627)
—
(25,841)
(71,511)
**_Other recognised gains / losses_**
Gains / losses on investment assets
—
—
—
—
—
—
Gains on revaluation, fixed assets, charity's own use
—
—
—
—
—
—
**Net movement in funds**
**(7,768)**
**(16,615)**
**(11,590)**
**—**
**(35,972)**
**(8,841)**
**_Reconciliation of funds_**
**Total funds brought forward**
**39,369**
**850,625**
**49,857**
**—**
**939,851**
**948,692**
**Total funds carried forward**
**31,602**
**834,010**
**38,267**
**—**
**903,879**
**939,851**| |---|---| _Page 2_ ## **St Mary's Church, Hornsey Rise N19 Statement of Financial Activities For the period from 01 January 2022 to 31 December 2022** ||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Prior year**| |---|---|---|---|---|---|---| ||**funds**|**funds**|**funds**|**funds**|**funds**|**total funds**| |**_Total funds of the parish, as above, are represented by_**||||||| |Unrestricted||||||| |General fund|31,602|—|—|—|31,602|39,369| |Designated||||||| |Camps and Conferences|—|—|—|—|—|1,050| |Hall Renovation (starting with Holloway donation)|—|92,786|—|—|92,786|108,284| |INTERN - fund for interns to include grants|—|3,335|—|—|3,335|3,335| |Love your Neighbour (food bank and FNT)|—|(365)|—|—|(365)|(298)| |Revaluation reserves|—|39,929|—|—|39,929|39,929| |Property - Zoffany St|—|698,325|—|—|698,325|698,325| |Restricted||||||| |Camps and Conferences|—|—|(586)|—|(586)|—| |Chairs and Sounds (new chairs and sound system)|—|—|896|—|896|2,281| |Cloudesley Grant - AV system replacement|—|—|—|—|—|8,164| |Cloudesley Initial Emergency Grant|—|—|521|—|521|521| |Discretionary Fund|—|—|(884)|—|(884)|(884)| |Love your Neighbour (food bank and FNT)|—|—|30,337|—|30,337|26,656| |RCC - Sliding Doors|—|—|7,984|—|7,984|7,984| |Tower|—|—|—|—|—|5,136| |||||||| |**Total funds carried forward**|**31,602**|**834,010**|**38,267**|**—**|**903,879**|**939,851**| _Page 3_ ## **St Mary's Church, Hornsey Rise N19** ## **Balance Sheet detailed** |||**As at**|**As at**| |---|---|---|---| |||**31/12/2022**|**31/12/2021**| ||||| |**Fixed assets**|||| |6 Zoffany Street||696,130|696,130| |Link Building - endowment||39,929|39,929| |Solar Panels||108,164|120,183| |AV Equipment||5,443|8,164| ||**Total Fixed assets**|**849,666**|**864,406**| |**Current assets**|||| |CAF Current Account||22,658|12,668| |CAF Bank deposit account||45,730|58,648| |Cash in hand||—|—| |Accounts Receivable||—|14,000| |Gift Aid to be claimed||6,808|10,777| ||**Total Current assets**|**75,197**|**96,094**| |**Liabilities**|||| |Loans received||20,000|20,000| |Agency collections||984|648| |Accounts Payable||—|—| ||**Total Liabilities**|**20,984**|**20,648**| ||||| |**Net**|**Asset surplus (deficit)**|**903,879**|**939,851**| ||||| |**Reserves**|||| |Excess / (deficit) to date||(35,972)|—| |Starting balances||939,851|939,851| |Gains/(losses) on investment assets||—|—| ||**Total Reserves**|**903,879**|**939,851**| ||**Represented by Funds**||| ||Unrestricted|31,602|39,369| ||Designated|934,010|850,625| ||Restricted|38,267|49,857| ||Endowment|—|—| ||||| ||**Total**|**903,879**|**939,851**| ||||| The financial statements were approved by the Parochial Church Council on Thursday 18th May 2023 and were signed on its behalf by: Rev. Tamsin Merchant _Page 4_ ## **St Mary's Church, Hornsey Rise N19** ## **Analysis of income and expenditure** ## **Selected period: 01 January 2022 to 31 December 2022** ||||||||**Total**| |---|---|---|---|---|---|---|---| |||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**This year**|**Last year**| |**Receipts**|||||||| |**_Planned giving_**|||||||| |0101 - Gift Aid - Bank (Standing orders)||19,824|—|—|—|19,824|16,962| |0110 - Gift Aid - Envelopes||1,285|—|—|—|1,285|306| |0201 - Other planned giving (SO.|no|10,882|—|—|—|10,882|8,406| |Gift Aid)|||||||| |**_Planned giving Totals_**||31,991|—|—|—|31,991|25,674| |**_Collections and other giving_**|||||||| |0301 - Loose plate collections||545|—|—|—|545|2,772| |0501 - One-off Gift Aid gifts||2,820|—|—|—|2,820|540| |0502 - One-off Member contributions||15|—|—|—|15|186| |(no Gift Aid)|||||||| |**_Collections and other giving totals_**||3,379|—|—|—|3,379|3,498| |**_Other voluntary receipts_**|||||||| |0550 - Donations appeals etc||5,091|3,660|1,640|—|10,391|38,666| |0701 - Legacies||1,500|—|—|—|1,500|10,000| |0801 - Recurring grants||—|—|—|—|—|1,800| |08A1 - Non-recurring one-off grants||3,841|—|400|—|4,241|31,573| ||||||||| |**_Other voluntary receipts Totals_**||10,432|3,660|2,040|—|16,132|82,039| |**_Other trading activities_**|||||||| |1230 - Church hall lettings - objectives||500|—|—|—|500|—| |1240 - Church hall lettings - fund raising||24,568|—|—|—|24,568|23,800| |1241 - Montessori Utilities||7,210|—|—|—|7,210|489| |1242 - Church Hire||60|—|—|—|60|617| |1243 - Church Rooms Rent||370|—|—|—|370|—| |1260 - Contributions to events e.g. retreats||—|—|1,735|—|1,735|—| ||||||||| |**_Other trading activities Totals_**||32,709|—|1,735|—|34,444|24,906| |**_Gift Aid recovered_**|||||||| |0601 - Tax recoverable on Gift Aid||3,581|—|—|—|3,581|20,846| |0611 - GAYE||440|—|—|—|440|3,080| ||||||||| |**_Gift Aid recovered Totals_**||4,021|—|—|—|4,021|23,926| |**_Investments_**|||||||| |1020 - Bank and building society interest||91|—|—|—|91|11| |1030 - Rent from 6 Zoffany Street||21,856|—|—|—|21,856|16,550| ||||||||| |**_Investments Totals_**||21,947|—|—|—|21,947|16,561| _Page 5_ ## **St Mary's Church, Hornsey Rise N19** ## **Analysis of income and expenditure** ## **Selected period: 01 January 2022 to 31 December 2022** |||||||**Total**|| |---|---|---|---|---|---|---|---| |**Unrestricted**||**Designated**|**Restricted**|**Endowment**|**This year**|**Last year**|| |**_Other receipts_**|||||||| |0802 - St Peter's income distribution|21,260|—|—|—|21,260|18,000|| |0901 - Other funds generated|5|—|—|—|5|(8,747)|| ||||||||| |**_Other receipts Totals_**|21,265|—|—|—|21,265|9,253|| |**_Receipts from church activities_**|||||||| |1105 - Fees to PCC|819|—|—|—|819|864|| ||||||||| |**_Receipts from church activities totals_**|819|—|—|—|819|864|| |**_Love Your Neighbour Project Receipts_**|||||||| |0555 - Donations for LYN Project|—|—|15,862|—|15,862|6,901|| |0556 - Donations for LYN Baby Boutique|—|—|—|—|—|2,000|| |0802A - Grants received for LYN|—|—|5,930|—|5,930|43,291|| ||||||||| |**_Love Your Neighbour Project_**|—|—|21,792|—|21,792|52,192|| |**_Receipts Totals_**|||||||| ||||||||| |**Receipts Grand totals**|126,563|3,660|25,567|—|155,790|238,913|| ||||||||| ||||||||| ||||||||| |**Payments**|||||||| |**_Missionary and Charitable Giving_**|||||||| |1801 - Giving to missionary societies|7,000|—|—|—|7,000|5,550|| |1850 - Home mission inc retreat|3,200|—|—|—|3,200|—|| |1855 - Community Projects|125|—|—|—|125|—|| ||||||||| |**_Missionary and Charitable Giving totals_**10,325||—|—|—|10,325|5,550|| |**_Parish Share_**|||||||| |1910 - Diocese Common Fund|70,000|—|—|—|70,000|68,000|| ||||||||| |**_Parish Share Totals_**|70,000|—|—|—|70,000|68,000|| |**_Clergy and Staffing costs_**|||||||| |2001 - Assistant staff costs|56|—|—|—|56|2,259|| |2050 - Salary of parish administrator|2,678|—|—|—|2,678|1,137|| |2051 - Staff Pension|—|—|—|—|—|328|| |2101 - Working expenses of incumbent|1,508|—|—|—|1,508|1,265|| |2130 - Parsonage house expenses|—|—|—|—|—|262|| |2140 - Water rates - vicarage|471|—|—|—|471|703|| |2150 - Vicar's telephone & internet|253|—|—|—|253|93|| |2370 - Visiting speakers / locums|—|—|—|—|—|10|| ||||||||| |**_Clergy and Staffing costs Totals_**|4,964|—|—|—|4,964|6,057|| |**_Church Running Expenses_**|||||||| |2301 - Church running - insurance|3,928|—|—|—|3,928|5,183|| |2302 - Bank Charges|81|—|—|—|81|96|| |2303 - Plant and machinery|1,629|—|—|—|1,629|—|| |2305 - Computer equipment|470|—|—|—|470|549|| |2310 - Church office - telephone|770|—|—|—|770|891|| |2315 - Printing, stationery and publications|94|—|—|—|94|38|| |2320 - Music including sound equipment|746|—|—|—|746|4,345|| |||||||_Page 6_|| ## **St Mary's Church, Hornsey Rise N19** ## **Analysis of income and expenditure** ## **Selected period: 01 January 2022 to 31 December 2022** ||||||||**Total**| |---|---|---|---|---|---|---|---| ||**Unrestricted**||**Designated**|**Restricted**|**Endowment**|**This year**|**Last year**| |2330 - Church maintenance||7,253|—|10,394|—|17,647|13,498| |2331 - Cleaning||2,219|365|608|—|3,191|2,416| |2340 - Sunday service costs||577|—|—|—|577|668| |2341 - Christmas expenses||35|—|—|—|35|192| |2345 - Flowers||85|—|—|—|85|95| |2350 - Upkeep of churchyard||1,404|—|—|—|1,404|68| |2360 - Administration||2,484|—|67|—|2,551|1,774| |2401 - Church running - electric||1,796|—|—|—|1,796|1,393| |2410 - Church running - gas||4,293|—|—|—|4,293|3,361| |2420 - Church running - water||511|—|—|—|511|163| |2440 - Church running - heating and lighting||—|—|—|—|—|181| |2601 - Governance costs – examination fee||1,224|—|—|—|1,224|(600)| |1730 - Costs of fetes & other events||130|—|—|—|130|87| |1860 - Youth and children's work||911|—|—|—|911|1,271| |2052 - HMRC NI Payments||596|—|567|—|1,164|1,811| |2170 - Children's and Adult Education||—|—|—|—|—|335| |2201 - Parish training inc. lay and|mission|400|—|(6)|—|394|1,784| |2202 - Camps||—|—|5,018|—|5,018|—| |2365 - Bookkeeping||2,500|—|—|—|2,500|1,875| |2380 - Catering and social events||422|—|—|—|422|379| |2602 - Fixed Asset Depreciation||2,721|12,018|—|—|14,740|2,721| |3001 - Unidentified Expenses||—|—|—|—|—|556| ||||||||| |**_Church Running Expenses totals_**||37,280|12,383|16,647|—|66,310|45,132| |**_Hall Running Costs_**|||||||| |2530 - Hall running - electricity||2,189|—|—|—|2,189|1,437| |2540 - Hall running - gas||3,410|—|—|—|3,410|2,421| |2560 - Hall running - maintenance||1,045|7,140|—|—|8,185|1,803| |2580 - Hall running - water||117|—|—|—|117|155| |2831 - Hall surveyor fees||2,300|—|—|—|2,300|—| ||||||||| |**_Hall Running Costs Totals_**||9,060|7,140|—|—|16,200|5,816| |**_Church Repairs & Maintenance_**|||||||| |2701 - Church major repairs - structure||1,022|—|5,136|—|6,158|—| |2710 - Church major repairs - installation||—|—|—|—|—|41,270| |**_Church Repairs & Maintenance totals_**||1,022|—|5,136|—|6,158|41,270| |**_Hall Repairs & Maintenance_**|||||||| |2820 - Hall + major repairs - installation||—|—|—|—|—|1,584| ||||||||| |**_Hall Repairs & Maintenance_**|**_totals_**|—|—|—|—|—|1,584| |**_Zoffany St Costs & Charges_**|||||||| |2910 - curate house running costs||959|—|—|—|959|4,751| |2915 - Zoffany St maintenance||720|—|—|—|720|13,549| ||||||||| |**_Zoffany St Costs & Charges_**|**_totals_**|1,679|—|—|—|1,679|18,300| _Page 7_ **St Mary's Church, Hornsey Rise N19** ## **Analysis of income and expenditure** ## **Selected period: 01 January 2022 to 31 December 2022** ||||||||**Total**| |---|---|---|---|---|---|---|---| |||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**This year**|**Last year**| |**_Love Your Neighbour Project Expenses_**|||||||| |2210 - LYN Food expenses||—|—|913|—|913|20,362| |2211 - LYN Equipment||—|—|367|—|367|1,644| |2212 - LYN Consumables||—|—|4,481|—|4,481|3,246| |2213 - LYN Manager||—|—|—|—|—|12,117| |2214 - LYN Volunteer Co-ordinator||—|—|4,533|—|4,533|5,512| |2215 - LYN Cleaner||—|—|1,733|—|1,733|3,996| |2216 - LYN Utilities||—|—|—|—|—|192| |2217 - LYN Grants to other organisations||—|—|4,344|—|4,344|925| |2218 - LYN Staff Pension/HMRC||—|—|295|—|295|4,965| |2219 - LYN Baby Boutique||—|—|518|—|518|1,000| |2220 - LYN Christmas Hampers||—|—|(1,058)|—|(1,058)|2,086| ||||||||| |**_Love Your Neighbour Project_**||—|—|16,126|—|16,126|56,044| |**_Expenses Totals_**|||||||| ||||||||| |**Payments Grand totals**||134,330|19,523|37,909|—|191,762|247,753| ## **NOTES ON THE FINANCIAL STATEMENTS** ## **1. Loan** During the previous year the parish received a loan of £20,000 from the Diocese of London. The loan is interest free and is repayable in 25 instalments of £800, which were originally intended to commence on the anniversary of the loan’s first drawdown. The loan monies were received in March 2021, but, following agreement with the Diocese, repayments in fact commenced in 2023. ## **2. Fixed Assets** - All fixed assets are initially recorded at cost. Depreciation is calculated, where appropriate, to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: - Solar panels – over 20 years - AV Equipment – over 5 years It is noted that depreciation was not charged in 2021 on the Solar panels, so depreciation to cover two years was charged in 2022. No depreciation is provided on freehold buildings. ## **3. Rounding** There may be minor discrepancies due to rounding differences as the pence are not being shown in these financial statements. _Page 8_