2020-12-31-accounts - The Parochial Church Council Of The Ecclesiastical Parish Of St Mark St Marylebone (Hamilton Terrace)

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Diocese of London

Charity Registration Number: 1155602

Report & Accounts 31 December 2020

Simply Churches Chartered Accountants

17 Heathville Road London N19 3AL

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report and Financial Statements 2020 Contents

	Page
Legal and administrative information	2
Report of the Parochial Church Council	3
Independent Examiner’s report to the Parochial Church Council	11
Statement of financial activities	12
Balance sheet	13
Notes to the financial statements	14

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Legal and Administrative Information For the year ended 31 December 2020

Charity Name The Parochial Church Council of The Ecclesiastical Parish of St Mark St Marylebone (Hamilton Terrace). Charity No 1155602. The Parish was established in 1847 and is a charity which was formally registered with the Charity Commission on 3 February 2014. Principal Address Hamilton Terrace, London, NW8 9UT Governing Document Parochial Church Council Powers Measure (1956) as amended and Church Representation Rules. Objective Promoting in the ecclesiastical parish the whole mission of the Church. Members of the PCC The Members of the PCC who served during the year or who were serving at the date of this report were: Clergy Rev Kate Harrison (Chair) Churchwardens Katherine Pitt (Vice chair) Katherine Laurenson Elected Lay Representatives To April 2021: Kate McCure Edgar Rogers Mark Tennant (to February 2020) Mark Jones Sally Harrison To April 2022: Naa-Ayeley Attoh Roger Bloomfield Co-opted members Penelope Harley - Secretary Ian Collins – Health & safety representative Lay Representatives to the Gladys Jusu-Sheriff Deanery Synod Robert Tyerman Robert Frater

Key Management Those in charge of directing, controlling, running and operating the Church on a day to day Personnel basis are the Incumbent, Church Wardens and Treasurer. Bankers HSBC

HSBC Pall Mall Branch 69 Pall Mall London SW1Y 5EY Kevin Ogilvie 13 Evelyns Close Uxbridge, UB8 3LR

Accountant

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Legal and Administrative Information For the year ended 31 December 2020

Independent John Helm ACA Examiner Simply Churches 17 Heathville Road London N19 3AL Quinquennial Paul Sharrock Inspector Thomas Ford & Partners 177 Kirkdale Sydenham London SE26 4QH

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Parochial Church Council For the year ended 31 December 2020

The Parochial Church Council of The Ecclesiastical Parish of St Mark St Marylebone (Hamilton Terrace) (“PCC”) submits its report and the financial statements of the PCC for the year ended 31 December 2020. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

The PCC co-operates with the incumbent in promoting the whole mission of the Church within its Parish and beyond. It also has responsibility for the non-stipendiary staff and the maintenance of the church building and the church hall complex.

1. Structure, Governance & Management

1.1 Trustees

The PCC is a body corporate with perpetual succession. The full PCC meets around six times during the year. Outside of this, smaller working groups, such as the worship committee, meet as required. The PCC discusses a full range of matters relating to finance, fabric, general administration and responsibility for keeping of the Electoral Roll. Members of the PCC are either ex officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules.

Membership of the PCC comprises the incumbent (our vicar), churchwardens, members elected by those members of the congregation who are on the electoral roll of the church (including those elected as representatives of Deanery Synod) and co-opted members. All who attend our services are encouraged to register on the Electoral Roll and stand for election to the PCC.

PCC members are responsible for making decisions on all matters of general concern and importance to the parish including how funds are to be spent. New members receive initial training pm the workings and responsibilities of the PCC.

1.2 Standing Committee

The Standing Committee, comprising the Vicar and the churchwardens, has the power to transact any urgent business of the PCC between its meetings, subject to any directives given by the PCC.

1.3 Church Attendance

The electoral roll is completely reviewed and revised once every six years but is updated every year in between. After full revision in 2020, there were 76 members on the electoral roll.

1.4 Risk Management

The PCC has a risk management strategy which comprises:

An annual review of the risks that the PCC may face;
The establishment of systems and procedures to mitigate those risks;
The implementation of procedures designed to minimise any potential impact on the PCC should those risks materialise.

The PCC’s primary concern and objective is the discipling of individuals for the glory of God and promotion of the pastoral, evangelical, social and ecumenical mission of the church. The PCC acknowledges that it has a responsibility, via its individual Members and as a body of Members, to identify and properly manage the risks it faces in achieving its primary aim. The PCC has assessed the major risks to which it exposed, in particular those relating to the specific operational areas of the charity and its finances. The PCC believes that, by monitoring reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational risks faced by the church, it has established effective systems and controls to mitigate those risks.

The PCC has a number of measures in place to mitigate risk, including a health and safety policy and a safeguarding policy overseen by the PCC, as well as a robust pastoral structure to deal with personnel issues. Financial risk is managed by the Treasurer and Churchwardens who report to the Vicar.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Parochial Church Council For the year ended 31 December 2020

2. Activities, Strategies & Public Benefit

The PCC follows the Anglican model of authority through Holy Scripture and human reason and the tradition of the church encourages participation in sacramental worship.

When planning our activities for the year, we have considered the Charity Commission’s guidance on public benefit and, in particular, the supplementary guidance on charities for the advancement of religion. In particular, we aim 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.

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. Mark’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 put faith into practice through prayer and scripture, music and sacrament. To facilitate this work, it is important that we maintain the fabric of the church and the church hall.

It has been particularly important this year to explore ways to bring the parish and wider community to worship through other means during periods when the church building had to close to public worship at the height of the pandemic.

3. Review of the Year

The year started in promising fashion, with the launch of Soul Space , a monthly Sunday evening service offering different styles of worship, but all offering quiet services allowing participants to relax and experience the beauty of worship. This began with choral Evensong on 1 March and the forward programme envisaged Shadows of the Cross with music and readings for Palm Sunday, Healing and Wholeness and a Taize-style evening service, but this had to be suspended as the country went into lockdown as the Covid 19 pandemic started to have an impact.

Following guidance from the Government and the Bishops, the church building was closed to public worship from 22 March 2020 to mid-July 2020 and again during the month of November 2020. During these periods, we streamed Sunday services live via our Facebook feed. Even in the darkest days of lockdown, this meant that we were able to continue to come together for worship, but as a new on-line community. The added benefit was that members of our church community who found themselves outside the UK at the start of the pandemic were still able to join us. We also attracted new members from beyond our parish boundaries.

There were times during the early period of the first lockdown when the vicar was not permitted to enter the church building to celebrate the Eucharist. During those periods operations were moved to the vicarage, with every service offered with the usual dignity, reverence and joy that is so familiar to St Mark’s. We streamed our Holy Week services and for the Easter Day service from the vicarage, we were able to incorporate a beautiful Eastertide anthem that the choir had recorded individually in their homes and which had been edited by our then Director of Music, Ben Hulme.

As we were permitted to open the church building to private and then public workshop, we conducted the appropriate risk assessments and implemented cleaning protocols and social distancing measures to ensure that we kept all users of the church safe. This involved mandating the wearing of face coverings in church, restricting the number of pews available for use and replacing service booklets with a project screen.

As our midweek services were suspended at the start of the pandemic, in July we introduced on-line Evening Prayer via Zoom, alternating between Common Worship and the Book of Common Prayer. These were led by members of the congregation and continued through the year, attended by a loyal following.

In September we welcomed a small choir back to services, singing from the upstairs gallery rather than the choir stalls, under the direction of our interim Director of Music, Dan Collins. We were fortunate to be able to field a small number

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Parochial Church Council For the year ended 31 December 2020

of singers to offer music for our Midnight Mass and Christmas Day services, both of which were well attended in the circumstances, with congregations braving the cold as the boiler was out of action. Both services were streamed live on Facebook.

Like churches around the country, we had to be creative in keeping the meaning of Christmas alive despite the restrictions. Our on-line Advent Calendar proved very successful, with contributions of music, poetry, craft and cookery demonstrations from a wide range of parishioners and members of the congregation, all under the theme of ‘What Christmas means to me’. We also ran an ‘Away in a Manger Challenge’, with over a hundred painted stones of the baby Jesus taken home in the weeks leading up to Christmas to be used as focal points for Christmas devotions in people’s homes. As we felt unable to offer our usual well-attended crib service on Christmas Eve, we provided a fun-filled on-line children’s service which could be accessed by families wherever they were located and at whatever time of day those chose.

We were conscious that some members of our church community felt uncomfortable returning to services in the church even once lockdown restrictions were relaxed. For this reason, we decided to continue to stream our Sunday morning and other key services live via our Facebook feed. Despite the technological challenges presented on occasion, we found this to be an excellent way of keeping in touch with our church community at home, allowing them to interact with their friends in church via the Facebook comments facility.

Deanery Synod

Three members of the PCC represented St Mark’s on the Deanery Synod, the parish’s link with the diocese and the wider structures of the Church as well as an important part of the national synodical process. A report of the Synod’s activities is given below.

Church Hall

At the start of 2020 the hall continued to be used by a wide variety of local groups, sharing our passion for providing learning and recreation activities for the people of St John’s Wood and Maida Vale. However, regular activities and ad hoc bookings were suspended for much of the year as Covid 19 restrictions took hold. A programme of non-essential repairs to the hall was put on hold pending the easing of restrictions.

Pastoral Care

Pastoral care continued to be provided within the confines of Covid 19 restrictions, with provision switching to telephone or on-line where possible. The vicar is to revisit the possibility of setting up a pastoral care team once restrictions are fully lifted.

Mission, Evangelism and Outreach

For the majority of the year the focus of our mission was to ensure that St Mark’s continued to be available as a source of community and support for anyone in need. We started the year by continuing to offer a broad range of activities to the wider community, including monthly Saturday coffee mornings, weekly games afternoons, ‘Pints of View’ discussions in a local pub and the community choir. Sadly these had to be suspended in March 2020, but with plans to reintroduce them as soon as permitted and safe to do so.

As a member of Churches Together in Westminster, the vicar met regularly with the incumbents of neighbouring parishes to talk about working together to minister within the area effectively; and there were regular conversations with other local major faith leaders.

The women’s book group met throughout the year, switching to Zoom during lockdown, and continued to form an important element of our outreach and pastoral care programme. A report on its activities is given below.

Volunteers

We are grateful to all who volunteered time and skills to keep St Mark’s alive and, once permitted, open during a hugely challenging year. This includes our churchwardens, Kate Pitt and Katherine Laurenson, members of the PCC, our readers, intercessors and servers, Evening Prayer leaders, members of our voluntary choir, those leading outreach activities and our team of gardeners and flower arrangers, led by Gerlinde Kathuria.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Parochial Church Council For the year ended 31 December 2020

5. Achievements and Performance: Additional Reports

Deanery Synod

Our representatives continued to contribute to the work of Marylebone Deanery Synod, switching from in person to Zoom meetings as the Covid19 pandemic began.

A £10 million capital works programme had been commissioned, with a need to raise £1 million. As well as devising means to minister under current conditions, the Deanery was looking ahead. At its meeting on 5 October 2020 Bishop Sarah spelt out the programme of the London Diocese in its ‘Vision for 2030: for every young Londoner to experience the love of God in Christ’.

Citing the example of the early Apostles, the bishop emphasised the role of small intimate groups and made it clear the Diocese was eager to talk to parish churches about the many challenges, such as keeping contact with the elderly and working out a post-COVID future. The aim is to see the church become younger, safer and racially diverse and for its members to ‘grow into confident disciples’.

Robert Tyerman, Gladys Jusu Sheriff and Robert Frater

Music

Our talented voluntary choir continued to enhance our worship. The choir kicked off the year well with beautiful Epiphany music at our regular Epiphany carol service in January 2020. The high standard achieved was set to continue through Holy Week and Easter. However, the planned programme of music, including a Bach cantata for Palm Sunday, had to be abandoned with closure of the church building in March. The choir was, however, able to offer music for the Easter Day Eucharist, streamed from the vicarage.

In July we were sad to say goodbye to our Director of Music, Ben Hulme, as he relocated to Manchester to take up a position as leader of the French Horn section with the BBC Philharmonic Orchestra. Fortunately, Ben’s departure coincided with the reopening of the church for public worship, so we were able to wish him well in person and thank him for his invaluable contribution to music at St Mark’s over the previous three years. Later in the year we were also sorry to see the departure of our Assistant Director of Music, Nicholas Tall, who left us after a year to take up a post at St Michael’s Croydon. We were very grateful to Nick for his contribution to St Mark’s during his short time with us. In August we were delighted to be able to appoint Dan Collins initially as interim then as our permanent Director of Music following an open competition.

Under Dan’s direction from September, the choir continued to produce music to a high standard despite the additional challenges posed by the need to maintain social distance between choir members and between the choir and congregation. This led to the choir leading worship from the gallery rather than their usual position in the choir stalls. As the ‘choir year’ started in September, we were pleased to bolster the number of choral scholars from two to four, thanks to the generosity of donations from supporters of music at St Mark’s.

We were hugely grateful to the choir for its hauntingly beautiful performance of Durufle’s Requiem in a liturgical setting at the service for All Souls.

We were grateful to Dan and the choir for continuing to provide musical contributions recorded in their own homes for our Sunday services throughout the second national lockdown in November.

In early December the choir treated us to a socially distanced concert featuring Part 1 of Handel’s Messiah plus the Hallelujah Chorus. For many in the audience this was the first time they had had the opportunity to hear live music in many months and we were justly proud of our choir’s performance. With big plans for 2021, we are hugely excited for the choir’s future under Dan’s direction.

It was agreed that the search for a new Assistant Director of Music would be delayed until 2021 to allow any changes to government guidelines to be taken into account.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Parochial Church Council For the year ended 31 December 2020

Safeguarding and provision for children

Due to government restrictions during the pandemic, all children’s services and activities, including Sunday School and the Little Lions weekly playgroup, were suspended from March 2020 and had not been able to resume by the year end. Children attending St Mark’s for worship with their parents were required to stay in their household bubbles for the duration of the service, which put them at low risk with regards to safeguarding.

The reintroduction of provision for children and associated safeguarding will be a priority as soon as circumstances allow.

Kate McCure

Fabric of the church and building

The pandemic and government guidelines dictated much of the activity in respect of the church buildings during 2020. Most significantly, the church hall was broadly unused for the majority of the year, meaning that this community asset did not deliver its usual level of income to the PCC. The number of people attending the church was also adversely impacted, with numbers understandably not returning to pre-pandemic levels by the end of 2020. On the upside, going into 2021 this provided the PCC with an opportunity to consider the right strategy for the use of the church hall and to attend to some essential repairs to the church buildings.

Church Hall and annex

As mentioned above, the church hall was unused for the majority of 2020 by its multiple regular and incidental users. This significantly reduced the PCC’s income for the year. The Vestry Pre-School gave vacant possession of the church hall annex on 30 November. This delivered an opportunity to reconsider the letting strategy for the church hall complex and it was agreed that expert advice would be sought to develop a proposal to maximise income from the church hall asset.

St Mark’s Cottage

In November 2020 essential repairs to the cottage were identified, including electrical and plumbing work and repairs to the roof. The execution of these works was carried forward into early 2021.

The Church

A boiler malfunction rendered the church heating system unusable during the latter part of 2020, leaving the church bitterly cold during the winter months, requiring the acquisition of a temporary heating solution. The system was set for repair in early 2021.

The PCC is once again grateful to David Harrison for his supervision of the church buildings during 2020 and his willingness to procure and oversee maintenance and repairs.

Katherine Laurenson/Kate Pitt

Gardening Group

St Mark’s gardening group was set up in April 2020 and met monthly by Zoom for members to share photographs of plants, discuss problems encountered through the activities of squirrels, foxes, slugs and snails, and get advice on pruning and feeding their plants. The group followed the seasonal changes and lovely blossoms in St Mark’s delightful churchyard. Most of all, group members enjoyed each other’s company and looked forward to being able to visit each other’s gardens in person, though accepting that that might be difficult for some, given that one lived in the Highlands of Scotland and the other in Berwick-upon-Tweed.

David Crompton

St Mark’s Women’s Book Club

The Book Club continued to meet about every four to six weeks during 2020. With almost sixty members on the group’s mailing list, an enthusiastic, fluctuating group participated in each gathering, with considerable fellowship exchanged on-line between meetings. The switch to Zoom at the start of the first lockdown enabled regular participation from various

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Parochial Church Council For the year ended 31 December 2020

geographic quarters, including Canterbury and Lagos. The Book Club switched between fiction and non-fiction, always aiming to read books that celebrate the experience of womanhood in all its richness.

Penelope Harley

4. Financial Review

The PCC’s main sources of funding are the free will offerings of church members and others in attendance at church meetings, and income from the hiring out of the church buildings.

4.1 Financial Activity and Financial Position

The Statement of Financial Activities and Balance Sheet can be found on pages 9 and 10 respectively. The Church’s reserves decreased by £14,524 during the year (2019 – decreased by £2,567). The balance sheet shows total net assets of £142,496 (2019: £157,020).

Included in total funds are amounts totalling £26,598 (2019: £22,078) which are restricted. These balances have either been raised for, and their use restricted to, specific purposes, or they comprise donations subject to donor imposed conditions. Full details of these restricted funds can be found in note 10 to the accounts together with an analysis of movements in the year.

4.2 Reserves Policy

The PCC has examined the requirements for free reserves, ie those unrestricted funds not invested in tangible fixed assets. The PCC considers that, given the nature of the church’s work, free reserves should be equivalent to approximately 2 months of operational expenditure (ie staff salaries and building running costs, but excluding Common Fund payments, mission giving and expenditure on special discretionary projects), plus committed future expenditure on other projects, where funds permit. The PCC is of the opinion that this provides sufficient flexibility to cover temporary shortfalls in income and will allow the church to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 December 2020 the church had net free reserves deficit of £9,954) (2019: free reserves of £8,422) as follows:

Total reserves Less: restricted funds Less: fixed assets Free reserves Free reserves requirement: 2 month’s budgeted routine expenditure	2020	2019 £ 157,020 (22,078) (126,520)
	£

	142,496
	(26,598)
	(125,852)

	(9,954)	8,422

		24,000
	20,000

The PCC is aware that free reserves are below the free reserves requirement and are considering a range of measures whereby parity between the two amounts can be restored.

4.3 Investment Policy

Funds in excess of immediate working capital requirement are placed in a bank deposit account.

4.4 Grants Policy

The church made no grants during the year. The PCC will be reviewing its future grants policy in 2020.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Parochial Church Council For the year ended 31 December 2020

5. Plans for Future Periods

In line with the objectives outlined in the 2014 Mission Action Plan, the following objectives remain central to the PCC’s planning:

Developing our stewardship and fundraising programme to secure the long-term future of St Mark’s, in particular considering the scope to introduce the Parish Giving Scheme;
Enhancing the church’s presence and visibility in the community;
Improving the building’s accessibility and making it a safer and more useful space for the church’s own use and for the use of others;
Continuing to engage with children through the Sunday School and through their involvement in liturgy, and by their admission to Holy Communion, and making provision for teenagers.

6. Responsibilities of Trustees for the Financial Statements

The PCC is responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law in England and Wales requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the PCC and of the income and application of income of the charity for that period.

In preparing those financial statements, the PCC is required to:

select suitable accounting policies and apply them consistently;
observe the methods and principles of the Charities SORP
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the activities of the charity will continue.

The PCC is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Charities Act 2011, the Charity Accounts and Reports Regulations 2008 and the provisions of the governing document. The PCC is 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 PCC is responsible for the maintenance and integrity of the charity and financial information included in the charity’s website.

7. Approval

The report of the PCC was approved by the PCC on 30 October 2021 and signed on its behalf by:

Kate Harrison Chair

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Report of the Independent Examiner to the Parochial Church Council of St Mark St Marylebone (Hamilton Terrace)

I report on the accounts of the Parochial Church Council of the Ecclesiastical Parish of St Mark St Marylebone for the year ended 31 December 2020, which are set out on pages 13 to 21.

Respective responsibilities of PCC and examiner

The PCC are responsible for the preparation of the accounts. The PCC 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 needed.

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 Commissioners (under section 145(5)(b) of the 2011 Act); and
to state whether particular matters have come to my attention.

Basis of independent examiners’ report

My examination was carried out in accordance with the General Directions given by the Charity Commissioners. 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 the seeking of 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 an fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the church as required by section 130 of the Act; or
the accounts do not accord with those records; or
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 have no concerns and 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.

John Helm ACA Simply Churches 17 Heathville Road London N19 3AL

30 October 2021

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Statement of Financial Activities For the year ended 31 December 2020

Unrestricted Funds 2020 £ 29,882 1,928 52,749 15		Unrestricted Funds 2019 £ 41,571 974 77,418 159
	Total
	2020
	£

	60,402
	1,928
	52,749
	15

84,574		120,122
	115,094

- 123,618 123,618 - (39,044) 20,000 - (19,044) 134,942 115,898		1,144 119,472

	-
	129,618

		120,616
	129,618

		-
	-

		( 494)
	(14,524)

		2,624 -
	-
	-

		2,130 132,812
	(14,524)

	157,020

		134,942
	142,496

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Statement of Cash Flows For the year ended 31 December 2020

Note Fixed Assets Tangible Assets 6 Current Assets Debtors 7 Cash at Bank and in Hand Creditors - Amounts Falling Due Within One Year 8 Net Current Assets Creditors - Amounts Falling Due After More Than One Year 9 Net Assets Represented by: Restricted Funds 10 Unrestricted Funds Total Funds	Unrestricted Funds 2020 £ 125,852 21,152 60,842 81,994 91,948 (9,954) - 115,898 - 115,898 115,898	Restricted Funds 2020 £ - - 26,598 26,598 - 26,598 - 26,598 26,598 - 26,598			Total 2019 £ 126,520 16,215 50,076
			Total
			2020
			£

			125,852


			21,152
			87,440

					66,291 11,779
			108,592

			91,948

					54,512 24,012
			16,644


			-

					157,020
			142,496

					22,078 134,942


			26,598
			115,898

					157,020
			142,496

The financial statements were approved by the PCC on 30 October 2021 and signed on its behalf by:

Katherine Pitt Treasurer

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102)). The financial statements are drawn up on the historical cost basis of accounting except for the revaluation of freehold land and buildings which are shown at market value.

The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe an affiliation to another body or those that are informal gatherings of church members.

The PCC meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the PCC has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received.

The income from trading activities includes rental income from the letting of church premises which is accounted for when earned. It is shown gross, with the associated costs of generating the income included in fundraising costs.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The PCC is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Charitable expenditure includes those costs in fulfilling the PCC’s principal objects, as outlined in the Report of the PCC. These include grants payable, governance costs and an apportionment of support costs.

Grants payable are payments made to third parties in furtherance of the PCC’s objects. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the PCC.
Governance costs comprise all costs involving the public accountability of the PCC and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

Taxation

As a charity, the PCC is exempt from tax on income and gains falling within the provisions of the Corporation Taxes Act 2010 or the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen on the PCC.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies (continued)

Tangible Fixed Assets

Consecrated Property and Moveable Church Furnishings

Consecrated land and benefice property such as the church building and vicarage is excluded from the accounts in accordance with s10 of the Charities Act 2011. Moveable church contents are held by the vicar and churchwardens on special trust for the PCC and require a faculty for disposal are accounted as inalienable property unless consecrated. All expenditure incurred on consecrated or benefice buildings and moveable church furnishings, whether maintenance or improvement, is expensed within the Statement of Financial Activities.

Leasehold Land & Building

The freehold land and building is the hall at St Mark’s Church Hall and Cottage, Abercorn Place, NW8 9YD. Depreciation is not provided as the estimated residual value is considered to be the same or higher than the carrying value of the property in the accounts.

Other Fixtures, Fittings & Office Equipment

The cost of other furniture, fittings and equipment, less any expected residual value, is depreciated on a straight line basis over the effective useful life of the asset, which has been estimated as 4 years

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising 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 recognised at their settlement amount.

Fund accounting

The funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the PCC.
Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Notes to the Financial Statements

For the year ended 31 December 2020

2. Income

		Total 2019 £ 39,415 4,856 - (3,485)
	Total
	2020
	£

	35,465
	4,938
	-
	20,000

		40,786 974
	60,403

	1,928

		974 75,061 2,157 200
	1,928

	52,732
	17
	-

		77,418 159
	52,749

	15


		119,337
115,095

The negative grant amount is due to the reversal of a restricted grant which had been recognised in previous accounting periods but in 2020 was reassessed and deemed not to be receivable.

3. Expenditure on Raising Funds

Unrestricted Funds 2020 £ Restricted Funds 2020 £ Fundraising Events - - Other costs - - 0 0				Total 2019 £ 1,020 123 1,143
		Total
		2020
		£

		-
		-


		0

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Notes to the Financial Statements

For the year ended 31 December 2020

4. Expenditure on Charitable Activities

		Total 2019 £ 43,395 19,773 - 11,835 41,867 3,132 758
	Total
	2020
	£

	60,000
	21,560
	-
	15,797
	25,273
	5,988
	1,000

		120,760
129,618

Staff costs

In addition to the many volunteers who give their time to the church, there were no (2019: two) paid employees whose costs are included within each of the main cost categories of “Expenditure on Charitable Activities” (note 4 above). Their aggregate emoluments were as follows:

Gross salaries Social security costs Pension contributions		2020		2019
		£		£

		-		2,831
		-		-
		-		-

		0		2,831

5. Net Income

5. Net Income
This is stated after charging: Operating lease rentals Independent examination fee	2020	2019
	£	£

	3,171	3,210
	1,000	758

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Notes to the Financial Statements For the year ended 31 December 2020

6. Tangible Fixed Assets

Cost At 1 January 2020 Additions Revaluation Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge For Year Disposals At 31 December 2020 Net Book Value At 31 December 2020 At 31 December 2019	Freehold building £ Equipment £ 124,515 2,673 - - - - - - 124,515 2,673 - 668 - 668 - - 0 1336 124,515 1,337 124,515 2,005
			Total
			£

			127,188
			-
			-
			-

			127,188


			668
			668
			-

			1336


			125,852

			126,520

All of the fixed assets are used for charitable purposes. The freehold land and building comprises the hall at St Mark’s Church Hall and Cottage, Abercorn Place, NW8 9YD.

7. Debtors

Prepayments Income tax recoverable		2020		2019 £ - 16,215 16,215
		£

		-
		21,152

		21,152

8. Creditors - Amounts Falling Due Within One Year

Accruals Other creditors Common Fund Loan (including loan interest payable)		2020		2019 £ 10,358 1,421 - -
		£

		1,948
		-
		60,000
		30,000

				11,779
		91,948

The loan refers to an advance paid by the Vestry Pre-School in relation to roofing works to the premises from which it operates. These premises form part of the church hall complex. Interest at a rate of 15% per annum is chargeable on the loan and the loan was repaid in 2021.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Notes to the Financial Statements For the year ended 31 December 2020

9. Creditors - Amounts Falling Due After More Than One Year

Loan		2020		2019 £ 24,012
		£

		-

For description of the loan, please see note 8.

10. Restricted Funds

10a Current Year

10a Current Year
Building & Grounds Fund Music Fund Organ Fund Charitable Giving Fund Music scholarships Tower Works	At 1 January 2020 £ 5,662 1,687 14,714 15 0 0 22,078	Income £ Expenditure £ Transfers £ 990 - - 1,250 - - - - - - - - 8,280 (6,000) - 20,000 - (20,000) 30,520 (6,000) (20,000)	Gains/ (losses) £ - - - - - - 0	At 31
				December
					2020
					£

					6,652
					2,937
					14,714
					15
					2,280
					0



					26,598

The transfer was in relation to a purchase of fixed assets using restricted funds.

10b Prior Year

10b Prior Year
Building & Grounds Fund Music Fund Organ Fund Charitable Giving Fund Music	At 1 January 2019 £ 8,177 2,399 16,183 15 0 26,774	Income £ Expenditure £ Transfers £ (3,485) 970 - 77 (789) - - (1,469) - - - - 2,624 - (2,624) ( 784) (1,288) (2,624)	Gains/ (losses) £ - - - - - 0	At 31
				December
					2019
					£

					5,662
					1,687
					14,714
					15
					0


					22,078

Descriptions of the main restricted funds are as follows:

Building & Grounds Fund. Income to this fund is mainly grants towards the restoration and maintenance of the church buildings and grounds. Much of the work paid for by these funds is eligible for VAT relief under the Listed Places of Worship Grant Scheme. Any VAT reclaimed on restricted expenditure is paid back into the relevant fund.

Music Fund. This fund contains donations and grants towards the musical activities of St Mark’s, including the purchase of choral sheet music and the subsidy of choral and organ scholarships.

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARK ST MARYLEBONE (HAMILTON TERRACE)

Notes to the Financial Statements For the year ended 31 December 2020

10. Restricted Funds (continued)

Organ Fund. This fund contains donations and grants towards the restoration of the existing pipe organ and the eventual construction of a new instrument.

Charitable Giving Fund. This fund contains proceeds from collection offerings and other donations received towards specific causes.

Tower Works . During the year a grant of £20,000 was received from the Diocese to fund works on the church tower. This grant covered payments made to PAYE Stoneworks for work completed in 2017.

Music Scholarship . Four donors pledged funds for choral scholarships for the new choir year commencing September 2020. In three cases the funds were donated as lump sums, whilst the fourth is to be funded via 12 monthly instalments. The scholarships are awarded in ten monthly payments.

11. Operating Lease Commitments

The total future minimum lease payments under non-cancellable operating leases are payable:

Not later than one year Later than one year and not later than five years		2020		2019 £ 3,162 1,581 4,743
		£

		3,489
		12,211

		15,700

12. Related Party Transactions and Balances

Members of the PCC gave a total of £7,524 (2019: £8,364) in unrestricted offerings and donations during the year.

No PCC members were employees of the PCC during the reporting period.

No PCC members were remunerated or paid any expenses in their capacity as trustees of the charity.

A total of £302 (2019: £1,167) was remitted to PCC members during the reporting period. This total consisted of reimbursements for various goods purchased for the church’s use or consumption. Three PCC members were paid or reimbursed for these purposes.