Parish of Hackney Annual Report and Accounts 2020 Hackney Church ANNUAL REPORT 2020 lJanuary- December 2020) REFERENCE AND ADMINISTRATIVE INFORMATION The Parochial Church Council of the Parish of Hackney (also known as Hackney Church) CHARITY NAME CHARITY NUMBER 1158545 CORRESPONDENCE Hackney Church House ADDRESS 1 Spiller House, Prodigal Square London E8 1FX TRUSTEES Members of the Parish Church Council IPCC) who served from 1 January 2020 to 31 December 2020 Rev'd Al Gordon - Rector Rev'd Mark Nelson Associate Rector Rev'd Tosin Oladipo- Curate Annotinette Bramble - Churchwarden John Parmiter- Churchwarden Vera Preedy - Licenced Lay Minister, Lay Vice Chair John Roe - Licenced Lay Min15ter, Deanery Synod Representative Miriam Gallacher Diocesan Synod Representative, Deanery Synod Representative John Geach - Deanery Synod Representative Tim Last- Deanery Synod Representative Peter Ottino - Deanery Synod Representative Olufisayo Sonuga - Deanery Synod Representative Elected members Rebecca Adlington (from October 2020, co-opted to October 20201 Yaa Appiah-Badu (from October 20201 Martyn Bearfoot Ruth 8est- Secretary Ellen Donnelley (to October 20201 Michelle Fontaine John Fyson Rachel Greeneklee (to October 2020) Linda Harris Jenny Jamie Sam Lawson Johnston- Treasurer Dave Lochhead Jame5 Mumford Patricia Musgrave Graeme Nicoll Treasurer Nerine O'connor Richard Walters Co-opted members Danna Brown Ifrorn October 20201 Temi Obembe Mike Woods PRIMARY BANKERS HSBC Bank Plc, 69 Pall Mall, London, SW1Y SEY Mazars LLP, 2nd Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS AUDITOR STRUCTURE, GOVERNANCE AND MANA6EMENT tiv The objective and vision of Hackney Church is to bring hope to the people of East London. Hackne Church Ex eriences Limited Hackney Church Experience Limited (HCELI, a related party consolidated in the financial accounts attached to this report. was incorporated in October 2020 to promote and manage events held within the church building of St. John at Hackney. The directors of trading entity are also trustees of Hackney Church and any profits generated by HCEL will be donated to Hackney Church. St. John's Housin Trust St. John's Housing Trust ISJHTI is a charitable entity whereby the trustees are also trustees of Hackney Church nd therefore SJHT is consolidated in the financial accounts attached to this report. The objectives of the trust are to provide, through two Leasehold properties held in the Hackney Gardens housing development, reasonably priced accommodation to church clergy andlor employees or to other people in need. Any profits generated by the trust are to provide support to people in need in the Hackney community and to assist with the advancement of Christianity through the maintenance of accommodation for the Church of England. Res onsibilities of the P The Parochial Church Council IPCC) has the responsibility, with the Rector, of promoting in the parish, the whole mission of the Church, pastoral, evangelistic, social and ecumenical., maintenance, care and upkeep of the church and churchyard., financial responsibilities and duties as Charity Trustees. As a Church of England Parish, the PCC and Rector follow the requirements of Church of England Canon Law. The PCC consists of Clergy, Churchwardens, Diocesan Synod Representatives and Deanery Synod Representatives as ex-officio rnembers and elected lay representatives from the congregation. PCC members are elected at the APCM, having been nominated by people entitled to attend the annual meeting. At each full meeting, the PCC received reports on Finance, Building and Churchyard, Deanery Synod, Safeguarding and other items as necessary. Matters relating particularly to the Church Building Project, Churchyard and redevelopment of the Old Rectory site have usually been attended to by the Hackney Church Standing Committee, as empowered by the PCC. Incoming Trustees receive an induction explaining both the trustee and PCC responsibilities. The induction includes a detailed discussion of the vision and objectives of the Charity, as well as the operation of the businesses. Cler and Church Staff The rnanagement of the church is overseen by the PCC and delegated to Rev'd Al Gordon. During 2020, the church clergy team consisted of Rev'd Mark Nelson and Rev'd T05in Oladipo whose roles are to look after the internal ministries and community outreaches of the church. Other clergy in training are Ordinands.. Nate Hayes,. Christa Brodie-Levinsohn.' Naomi Maxwell-, Robin Talbot and Toby Thomas. As of December 2020, the staff team consisted of 24 staff members and 11 Interns operating within various ministries including Kids. Youth, Worship, Outreach, Discipleship, Evangelism and Central Services. In addition, many on the staff team also serve as Pastors within their ministry. The salaries for key management personnel are commensurate with similar positions in other charitable entities of a similar size and economic location. Public Benef it The PCC members confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit. Hackney Church benefits the community by the activities described in this report. The PCC has complied with the duty under section 5 of the Safeguarding and Clergy Discipline Measure 2016, in relation to having due regard to House of Bishops, guidance on safeguarding children and vulnerable adults. The PCC has in place a Safeguarding Policy which is reviewed each year and appointed Safeguarding Officers and Children's Champions. The Policy is displayed in the church and available from the Parish Office. ACHIEVEMENTS AND PERFORMANCE Parish electoral roll There were 296 names on the Electoral Roll at the end of the revision process in 20201297 in 2019). Services and Attendance At the start of 2020, f ive weekly services took place at St Luke, Homerton until government restrictions cancelled in-person services. These were.. Wednesday morning 10am Eucharist service,. Sunday 9am Choral Eucharist,. two family worship services at 10am and 11'.30am, and an evening service at 6pm. In March 2020, when the nationwide lockdown began, we broadcast our first online service. The online presence grew from a single weekly service to a full spectrum of online services including 'live' Sundays, mid- week bible studies and the ability to catch up via the podcasts and YouTube channels. By the end of 2020, there were regularly over 1,000 unique viewings of the weekly digital sermons. Average Sunday attendance at the Church in 2020 prior to the lockdown was 540 (2019.. 480). At the end of the year, there were 1,455 adults (2019.. 1,135) and 758 children12019.. 6861 within the church database. ister of occasional services In 2020 there were two weddings, one baptlsm and no funerals off iciated. Worshi In early 2020, the Hackney Church Choir was Singing at the 9am Choral Eucharist in St Luke's, Homerton. Along with our Direttor of Music, our four choral scholars were regularly joined by around twelve members of the congregation. Many plans for development and singing were unfortunately delayed due to the COVID- 19 restrictions. When church re-opened in September, some choral activity resumed, with the choral scholars and individual choir members singing anthems and hymns lor playing instruments) with organ accompaniment. Choral highlights of 2020 include the performance of Faure's Requiem for the All Souls Service, with 20 singers socially distanced around the St John at Hackney balcony, the Carol Services in St John at Hackney and Leyton Church, and singing carols from the balcony for Midnight Mass. The choir also joined with the musicians of Shoreditch Church and the Choir of West Ham Church in providing pre-recorded hymns and anthems for online and in-person services. Hackney Church's contemporary musical life continues to flourish. We saw the worship, production and creative crew grow from 60 volunteers to over 90 volunteers consisting of a wide diversity of ethnicity, gender and age. Additionally, due to the global pandemic, the team has adapted to recording worship songs for the Hackney Church online services as well as leading worship for our in person services. The contemporary worship team has begun to write original worship songs and performs those songs within the live and digital services. He Bab and Kids The 'Hey Baby, Monday hang was operating in full capacity in early 2020 but was unfortunately put on hold during the pandemic. Due to the popularity of Hey Baby and the ability to reach out to so many young mothers, we plan to relaunch when the pandemic situation subsides. The Kids rninistry continued through the lockdown period with specific kids activities that were supplied via post, online via youtube and zoom groups, plus 'fun slots, for kids on the Hackney Church Everywhere service. The Youth ministry (11-18 years old) launched"Midweek', a weekly Thursday evening specifically for the youth of Hackney Church. The service moved into an online format from March 2020 onwards. The youth gathered online via a Youtube Livestream for 30 minutes guided by two leaders for engagement, community and encouragement in faith. Smaller groups would then follow via zoom for further fellowship and an opportunity to go deeper in discipleship. We have over 40 young people signed up for our weekly small groups and the youth ministry has grown to almost 80 active participant512019.' 55). Rh hrns& Kin dom Come The'Rhythms prayer gathering, is held every Tuesday morning from 8-9am, for an hour of informal prayer and worship. Our weekly Eucharist service was held on Wednesdays and led by clergy. Seasonal 'Kingdom Come, prayer events are powerful evenings of encounter with God and take place from Ascension through Pentecost. municat. 2020 was an exceptionally dynamic year for communication at Hackney Church. We successfully pivoted all of our services and ministries to online platforms and navigated our way from in-person Sundays to recording studios with very positive results. We strived to keep everyone updated through various digital communication channels along with diligently posting and hand-delivering service sheets to those not online. We believe that excellent communication helps build a stronger community within the Hackney Parish. Form Hackney Church continued with the internship program called 'Form'. Beginning annually in September. the eleven students attend HTB Leadership College one day a week and then assist Hackney Church within different ministries and Sundays two and 8 half days per week. This has been an excellent program to attract vibrant young people into the church staff tearn. The Alpha course ran three times in 2020,. once 'in-person' and twice online via zoom. Alpha ha5 been instrumental in growing the church. A significant number of those that attend the course decide, during the course or at the end, to join the church. Alpha continues to be a key area of focus going forward. hth Hackney Church's Lighthouse projett works with vulnerable people by helping to alleviate need through our pioneering Drop-ln Lunch, building lasting relationships, restoring dignity and guiding individuals toward relevant social services so they can build a future filled with hope. The past year saw unprecedented demand such that Lighthouse expanded from distributing 10,000 meals per year from one location in Hackney to delivering 300,000 meals per year on four locations in three East London boroughs. During the year, the Lighthouse completely changed in its output, capacity, presence and mode of operation to ensure safety and compliance with Covid regulations. We now provide a "takeaway" for hot meals and weekly food parcels. As of September 2020. Lighthouse operate5 a self-run foodbank service that ha5 freedom to provide pastoral support to the people in need. Alongside changes to the operation. we have seen the number of those accessing our services increase by almost 600% over the last year. Much of the increases are a result of the pandemic. The food distribution point at St Luke's Homerton Terrace, which runs on Tuesdays and has continued to operate as the main Lighthouse hub. The Lighthouse at St Mary's Leyton launched in April 2020, All Saint's West Harn and St. Leonard's Shoreditch both launched in November 2020. Lighthouse was part of the Love Your Neighbour initiative which is a network of churches committed to providing for those in need. This initiative provided £54,000 of matched government funding that went directly toward supporting those with food poverty. At Christmas 2020, a grant from the nationwide Love Christmas campaign (also part of Love Your Neighbour) allowed us to deliver 5000 mini-hampers of Christmas treats ond supplies to over 50 groups and churches in Hackney, Waltham Forest and Newham. We have developed new partnerships over the last 12 months with a number of organisations including Fareshare, Felix Project, City Harvest, Deliver Aid, Toiletries Amnesty, Bloody Good Period, Edible London. We work with the Hackney Food Justice Alliance and receive ongoing funding from Hackney Parochial Charities. Local bakeries such as Pophams and Gails regularly donate bread and baked good for our food parcels. We plan to open our f ifth distribution point using the kiosk space on the grounds of St John at Hackney to distribute hot takeaway food in early 2021. Action Crew and "Outward Care" Throughout the pandemic, we gathered almost 200 volunteers, called the "Action Crew-, that were instrumental in delivering food parcels, prescription, shopping and making phone calls to those in need. This was particularly positive as many of the volunteers were not previously associated with the church. These volunteers continue to operate, though with reduced numbers, as the pandemic situation stablises. The Hackney Winter Night Shelter was a long term partner with both St John at Hackney and St Luke's Homerton. Although they no longer operate at our church buildings, we continue to support them with volunteers and coordinators. Communi En ement The National Lottery Heritage Fund plan included Funding for a Community Engagement Officer with a remit to deliver an Activity and Interpretation plan as part of the Restoration project. As part of delivering these plans we have met with many key people at Hackney Council, made connections with local organisations and churches. and attended a number of forums led by comrllunity groups such as London Citizens and others. The NLH F contribution ha5 enabled Hackney Church to be a 'founder rnember, and accredited ernployer with the Hackney Apprenticeship Network,. a council body seeking to promote apprenticeships within the Borough. Throughout 2020, the Community Engagement Team delivered a number of exciting projects and activities that provided people in the local area to participate in a range of church related attivities. All the courses, activities and events outlined above could not take place without the much-appreciated help of volunteers from the congreg3tion. FABRIC AND FACILITIES REPORT Quinquennial Inspection Report The Quinquennial inspection for St. John at Hackney Church was carried out in March 2017 with a nurnber of recommendations that were actioned through the Restoration project. The Quinquennial inspection recommendations for St. Luke's of Homerton are also being completed and the property is due for a new inspection in 2021. Hackney Church Restoration Project The restoration project began in 2018 and the structural renovation was completed in summer of 2020. The restoration funds were provided by the Heritage Lottery Fund, the London Diocese and the ongoing support of the congregation. The updated church building was opened to the congregation in September and was very positively received by the church members and promoters that could use the space for external events via Hackney Church Experiences Limited. Investments to launch Hackney Church Experiences Hackney Church renovated the church building so that it can be utilised for both religious purposes and for large scale events and gatherings such as concerts and assemblies. Significant investments were made to the sound systems, lighting and other PA equipment. Hackney Church Experiences Limited, a related party consolidated in the financial accounts attached to this report, the business was launched in October 2020 and started to promote events. Other land and property arrangements.. Hackney Gardens development was completed in late summer 2020. The Parish of Hackney was granted the use of a working space that includes a front office, meeting rooms. two new halls plus a full catering kitchen. The larger hall will seat approximately 230 people. and the lower hall 130. Pay and Display car park continues to operate via a contract with JustPark. The cafe in the churchyard is no longer let out and therefore available for church use. In 2020, the kiosk was used to promote the gardens St. John at Hackney and the floristry activity of Hackney Church Experiences Limited. The kiosk is also being set up to host the weekly Lighthouse drop in hot lunch. The church permits the usage of cabling under the footpaths for additional church revenues. FINANCIAL REVIEW 2020 Funding The principal source of funding is from the congregation members and other supporters in the form of regular donations and collections, standing orders and direct debits. The total amount raised in this way for the ministries of Hackney Church in 2020 was £840,932 (2019.. £594,826). We are immensely grateful to God and to all those who gave so generously. Other funding was from grants. Income was also generated from the rental of the churchyard and parking areas. These activities were able to generate income of £166,329 (2019= £108,303). In 2020, Hackney Church Experiences Limited accumulated net liabilities of £58,674 which arise from start- up expenditures and the restrictions on events due to the pandemic. We expect this deficit to reduce throughout 2021 as the ability to generate revenues increases with the easing of lockdown. Expenditure in support of the key objectives All expenditure was in support of the key objectives. It is analysed into different church activities in note 3 of the financial statements. Most of the spending meets more than one of the key objectives. Policy on reserves PCC policy is to not deliberately build up reserves. Any reserves that may exist, result from occumulated giving at any one time. Total unrestricted and undesignated reserves at 31 December 2020 amounted to £48,156 12019.. £396,697). Risk assessment and mitigation The risks which the organisation faces have been considered and measures will be implemented to ensure that appropriate systems, policies and procedures are in place to manage and mitigate the risks. Specifically, where there is financial risk this is managed by strong financial systems and controls. These risks. including health and safety and employment, are being mitigated through modern management systems and practices. As a matter of general policy, independent professional advice is taken where appropriate. In response to the Coronavirus pandemic. the PCC have considered the likely impact on 2021 finances and have taken steps to review the ongoing income and expenditures. The trustees are reassessing the situation regularly and will take appropriate èction as the situation develops. The trustees are confident that with the continued support of the congregation and appropriate management of expenditure, the church is è going concern and will continue to be financially viable during the ongoing crisis. The budgets will continue to be prepared in line with the financial circumstances and trustees are confident that they will be able to prepare a balanced budget given the continued support of the congregation. Investments Hackney Church has investments that are held with CCLA. These investments are held at market value. Grant making policy The task of deciding how to distribute grants is done by the Rector with reference to the Treasurer. 6rants are awarded to organisations, church members and community members based on an evaluation of each case. All giving follows Hackney Church's mission policy of the promotion of the Christian gospel In proclamation and social action throughout the world. Sustainability policy Hackney Church encourages the adoption of 5UStainable practice in all areas of church life and work, to contribute to the overall reduction in carbon emissions and dealing with the growing evidence for man-made climate change. Measures taken include recycling, energy audits, solar panels, encouraging the use of public transport, cycling and walking. Plans for future periods The short and medium term plan is to continue with the same objectives and activities in support of them. PCC TRUSTEE RESPONSIBILITIES Charity law requires the PCC, the charity trustees, to prepare a statement of financial activities and statement of assets and liabilities for each financial year, which gives a true and fair view of the state of affairs of the church and of its financial activities for that year and adequately distinguishes any material special trust or other restricted fund of the church. In preparing those financial statements the PCC is required to.. select suitable accounting policies and then apply them consistently,. make judgements and estimates that are reasonable and prudent; state whether the policie5 adopted are in accordance with the appropriate Statement of Recornmended Practice on Accounting by Charities and the Accounting Regulations and with applicable accounting standard5, subject to any material departures disclosed and explained in the financial statements., prepare the accounts on the going concern basis unless it is inappropriate to presume that the church will continue to operate. The PCC is responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the church, and to enable them to ensure that the financial statements comply with applicable Accounting Standards and Statements of Recommended Practice and the regulations made under the Charities Act 2011. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees and PCC members of Hackney Parish on 11 May 2021 and signed on their behalf on by Rev'd Al Gordon, Rector. Date= 18110121 Independent auditor's report to the trustees of Parochial Church Council of Hackney Church Opinion We have audited the financial statements of Parochial Church Council of Hackney Church (the 'charity') for the year ended 31 December 2020 which comprise the Consolidated Staternent of Financial Activities, the Consolidated and Charity Balance Sheets, The Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the U K and Republic of Ireland" (United Kingdom 6enerally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charity and the group's affairs as at 31 December 2020 and of the group's income and expenditure for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice", and have been prepared in accordance with the requirement5 of the Charitie5 Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) IISAS IUK)) ènd applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financi31 statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the f inancial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue a5 a going concern for a period of at least twelve months f rom when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the Trustees, Report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information 15 materially inconsistent with the financial Statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other inforrnation. If, based on the work we have performed, we conclude that there is a rnaterial misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the Trustees, Report., or sufficient accounting records have not been kept,. or the financial staternents are not in agreement with the accounting records.. or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the trustees, responsibilities statement set out on pège 8, the trustees are responsible for the preparation of the financial statements and for being satisf led that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objective5 are to obtain reasonable assurance about whether the financial statement5 as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including f raud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, U K tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and f raud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19. and we considered the ehent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companie5 Act 2006 and the Charitie5 Statement of Recommended Practice. 10 We evaluated the trustees, and management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, mènagement bias through judgements and assumptions in signif icant accounting estimates, in particular in relation to fund accounting, and significant one-off or unusual transactions. Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to.. Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations., Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit,. and Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. Our audit procedures in relation to fraud included but were not lirnited to.. Making enquiries of the trustees and management on whether they had knowledge of any actual. suspected or alleged f raud,. Gèining an understanding of the internal controls established to mitigate risks related to fraud., Discussing amongst the engagement team the risks of fraud-, and Addressing the risks of fraud through management override of controls by performing journal entry testing. There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.or auditorsres onsibilities. This description forms part of our auditor's report. Use of the audit report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. LknP Mazars LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road. Sutton, Surrey, SM14FS Date.. 19 O¢lober 2021 Mazars LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. ## **Parochial Church Council of Hackney Church Consolidated Statement of Financial Activities For the year ended 31 December 2020** |**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**TOTAL FUNDS**
**2020**
**Note**
**£**
**£**
**£**
**£**
**INCOME FROM:**
Congregation Giving
2(a)
833,559
70
7,303
840,932
Charitable Activities
2(b)
393
-
-
393
Other Funds Generated
2(c)
225,970
392,632
780,910
1,399,512
Events Income
2(d)
-
-
-
-
Investments
2(e)
5,161
-
-
5,161
Other Income
2(f)
17,732
18,401
10,000
46,133
Other Trading Activities
2(g)
-
22,437
-
22,437
**TOTAL INCOME**
**1,082,815**
**433,540**
**798,213**
**2,314,568**
**EXPENDITURE ON:**
Church activities
3(a)
1,008,800
30,716
340,116
1,379,632
Events
3(b)
-
-
-
-
Building Projects
3(c)
91,961
1,490,119
459,580
2,041,660
Other Trading Activities
3(d)
-
81,001
8,894
89,895
**TOTAL EXPENDITURE**
**1,100,761**
**1,601,836**
**808,591**
**3,511,187**
**NET (EXPENDITURE)/INCOME before separately**
**stated items**
(17,946)
(1,168,296)
(10,378)
(1,196,619)
Gift of Leasehold Properties
4(b)
-
-
450,000
450,000
Merger of St. Luke's Church at Net Book Value
-
-
-
-
**NET INCOME/(EXPENDITURE)**
**(17,946)**
**(1,168,296)**
**439,622**
**(746,619)**
Write off of deficit on designated and restricted funds
9
(337,170)
337,170
-
-
Transfers between Funds
-
-
Gains on Investment assets
6,574
-
-
6,574
**NET MOVEMENT IN FUNDS**
**(348,542)**
**(831,126)**
**439,622**
**(740,045)**
Balances brought forward at 1 January 2020
396,697
938,006
85,324
1,420,027
**BALANCES CARRIED FORWARD**
**AT 31 DECEMBER 2020**
**48,156**
**106,880**
**524,946**
**679,982**|**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**Endowment**
**funds**
**TOTAL FUNDS**
**2019**
**£**
**£**
**£**
**£**
**£**
591,183
2,730
913
-
594,826
3,377
-
-
-
3,377
213,115
392,889
1,416,776
-
2,022,780
80
-
-
-
80
9,181
-
-
293
9,474
678
-
-
-
678
-
-
-
-
817,614
395,619
1,417,689
293
2,631,215
751,533
19,991
79,419
-
850,943
-
61,233
-
-
61,233
13,815
121,541
3,122,623
-
3,257,979
-
-
-
-
**765,348**
**202,765**
**3,202,042**
**-**
**4,170,155**
52,266
192,854
(1,784,353)
293
(1,538,940)
4,011
50,701
14,153
-
68,865
**56,277**
**243,555**
**(1,770,200)**
**293**
**(1,470,075)**
-
(1,846,312)
1,846,312
-
-
-
44,663
-
(44,663)
-
12,581
-
-
1,728
14,309
**68,858**
**(1,558,094)**
**76,112**
**(42,642)**
**(1,455,766)**
327,839
2,496,100
9,212
42,642
2,875,792
**396,697**
**938,006**
**85,324**
**-**
**1,420,027**| |---|---| 12 ## **Parochial Church Council of Hackney Church Statements of Assets and Liabilities For the year ended 31 December 2020** |**2020**
**2019**
**Note**
**£**
**£**
**FIXED ASSETS**
Investments
12
81,600
75,013
Tangible assets
8
1,030,864
24,665
**1,112,464**
**99,678**
**CURRENT ASSETS**
Current account & Cash on Hand
212,831
600,579
Church of England Cash Deposit fund
502,839
1,352,839
Debtors
11
143,121
854,011
Prepayments
11
15,872
253,209
**874,662**
**3,060,638**
**LIABILITIES: AMOUNTS FALLING DUE**
**WITHIN ONE YEAR**
13(a)
(307,143)
(740,289)
**NET CURRENT ASSETS**
**567,519**
**2,320,349**
**LIABILITIES: AMOUNTS FALLING DUE**
**AFTER MORE THAN ONE YEAR**
13(b)
(1,000,000)
(1,000,000)
**NET ASSETS**
**679,982**
**1,420,027**
**FUNDS**
9
Unrestricted
48,156
396,697
Designated
165,444
938,006
Restricted
63,785
85,269
Designated Non-Charitable Trading Reserves
(58,564)
-
Restricted Reserves of the Consolidated Charity
461,161
55
**679,982**
**1,420,027**
**GROUP**|**2020**
**2019**
**£**
**£**
81,600
75,013
586,114
24,665
**667,714**
**99,678**
185,805
600,524
502,839
1,352,839
232,397
854,011
16,872
253,209
**937,913**
**3,060,583**
(328,242)
(740,289)
**609,671**
**2,320,294**
(1,000,000)
(1,000,000)
**277,385**
**1,419,972**
48,156
396,697
165,444
938,006
63,785
85,269
-
-
-
-
**277,385**
**1,419,972**
**Hackney Church**| |---|---| Approved by the Parochial Church Council on 11 May 2021 and signed on its behalf by: Rev'd Al Gordon Rector of the Parish of Hackney The notes on the subsequent pages form part of these financial statements. 13 ## **Parochial Church Council of Hackney Church Consolidated Cash Flow Statement** ## **For the year ended 31 December 2020** |**Parochial Church Council of Hackney Church**
**Consolidated Cash Flow Statement**
**For the year ended 31 December 2020**||| |---|---|---| |_Cash Flows from Operating Activities:_
**Note**
**Net Expenditure for the Year**
Adjustments for:
Depreciation
8
Dividend and Interest Income from Investment Activities
2(e)
(Increase) in Equity due to merger of St. Luke's
Unrealised (Gains) on Investment Assets
Net expenditures on Building Restoration Project
Less Grants Received as Financing Activities
Decrease / (Increase) in operating activity debtors
11
(Increase)/Decrease in operating activity prepayments
11
(Decrease)/Increase in operating activity creditors
13
**Net Cash Flow from Operating Activities:**
_Cash Flows from Building Restoration Project:_
Net expenditures from Building Restoration Project
3(c)
Decrease / (Increase) in Building Restoration debtors
Decrease / (Increase) in Building Restoration prepayments
11
(Decrease) / Increase in Building Restoration creditors
13a
**Net Cash from Building Project Activities:**
_Cash Flows from Investing Activities:_
Sale/Disposal of property
8
Purchase of other fixed assets
8
Gift of Leasehold Property
8
Changes in Cash, Debtors, and Creditors as a result of Merger
Liquidation of Investment Assets to cash
Decrease in Investment Interest Receivable
Interest received on Investment Activities
2(e)
**Net Cash from Investing Activities:**
_Cash Flows from Financing activities:_
Grants received in Current Year from Financing Activities
Loans received in Current Year from Financing Activities
**Net Cash Flows from Financing activities:**
**Net Decrease in Cash and Cash equivalents**
**Movement in cash and cash equivalents:**
Net Decrease in cash and cash equivalent
Cash and cash equivalents at beginning of period
**Cash and cash equivalent as at end of Period**|**2020**
**2019**
£
**£**
(740,045)
(1,455,766)
133,946
31,828
(5,161)
(9,474)
-
(68,865)
(6,574)
(12,581)
2,041,660
1,782,706
(594,890)
(343,554)
155,015
(38,771)
(2,903)
30,151
(191,431)
7,084
**789,617**
**(77,242)**
(2,041,660)
(1,782,706)
555,865
(484,470)
240,240
(240,240)
(241,715)
185,527
**(1,487,271)**
**(2,321,889)**
-
363
(690,145)
(10,550)
(450,000)
-
-
(469)
-
34,883
-
3,977
5,161
9,474
**(1,134,984)**
**37,678**
594,890
343,554
-
1,300,000
594,890
1,643,554
**(1,237,748)**
**(717,899)**
(1,237,748)
(717,899)
1,953,418
2,671,317
**715,670**
**1,953,418**
**Group**|| |||**2019**
**£**
(1,455,766)
31,828
(9,474)
(68,865)
(12,581)
1,782,706
(343,554)
(38,771)
30,151
7,084
**(77,242)**
(1,782,706)
(484,470)
(240,240)
185,527
**(2,321,889)**
363
(10,550)
-
(469)
34,883
3,977
9,474
**37,678**
343,554
1,300,000
1,643,554
**(717,899)**
(717,899)
2,671,317
**1,953,418**| 14 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2020** ## **1. ACCOUNTING POLICIES** ## **Basis of preparation** The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The PCC meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The consolidated financial statements includes the results, assets and liabilities, including that of Hackney Church Experiences Limited and St. John's Housing Trust, for which the PCC is responsible in law. They do not include the accounts of other charities or Church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members over which the PCC does not have operation or financial control. Hackney Church Experiences Limited was incorporated and began trading in 2020 and therefore was not consolidated in the prior years. St. John's Housing Trust had began activities in June 2020. The charity was dormant in prior years and also therefore were not consolidated. The PCC considers that Hackney Church is a going concern as it has prepared what it considers a viable budget that shows that the current level of unrestricted reserves it is appropriate to support the activities planned for 2021 and for the foreseeable future. Therefore, the accounts are prepared based on Hackney Church being a going concern. The PCC are fully aware of the impacts due to the COVID-19 pandemic and are taking precautionary measures with budgeted expenditures in order to be flexible if the situation arises. ## **Funds** Unrestricted and designated funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC. Restricted funds are those endowments, legacies, donations or grants for specific purposes. The funds may only be expended on the specific object for which they are given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. The details of the funds are set out in note 9. ## **Income** ## _Voluntary income_ Planned giving, collections and donations are recognised when received. An estimate of income tax recoverable is recognised when the related donations are recognised. Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the PCC is probable. Sales of books and magazines from the church bookstall are accounted for gross. ## _Income from investments_ Dividends are accounted for when due and payable. Interest entitlements are accounted for as they accrue. ## _Other income_ Rental income from the letting of church premises is recognised when the rental is due. Other income is recognised when received. 15 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2020** ## **1. ACCOUNTING POLICIES (continued)** ## **Expenditure** ## _Grants_ Grants and donations are accounted for when paid over, or when the award has been notified to the recipient, whichever is sooner, if the award creates a binding obligation on the PCC. ## _Church activities_ The diocesan Common Fund is accounted for when paid. Any Common Fund unpaid at 31 December is provided for in these accounts as an operational (though not a legal) liability and is shown as a creditor in the Balance Sheet. All other expenditure is generally recognised when it is incurred and is accounted for gross. ## **Fixed assets** ## _Consecrated property and moveable church furnishings_ The properties within this class are the church building. Consecrated and beneficed property of any kind is excluded from the accounts by s.10 of the Charities Act 2011. Moveable church furnishings held by the Rector and Churchwardens on special trust for the PCC, and which require a faculty for disposal, are accounted as inalienable property unless consecrated. They are listed in the church's inventory, which can be inspected (at any reasonable time). All expenditure incurred in the year on consecrated or beneficed buildings or on the repair of movable church furnishings is written off. ## _Other fixtures, fittings and office equipment_ Only items of greater than £500 are capitalised. Church production equipment comprises a number of electrical and other items connected with sound, vision and worship. They will be depreciated over three years from date of first use. Computer and office equipment and furnishings are depreciated over three years from date of first use. Vehicles are depreciated over 6 years using the reducing balance method. ## _Leasehold Properties_ Leasehold properties are depreciated over 50 years from date of acquisition. ## **Current assets** Amounts owing to the PCC at 31 December in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncollectable. ## **Investments** Except where otherwise indicated in the notes to the financial statements, investments are valued at market value as of 31 December. ## **Critical accounting judgements and key sources of estimation uncertainty** In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 16 ## **Parochial Church Council of Hackney Church Notes to the Financial Statements** **For the year ended 31 December 2020** ## **2 CONSOLIDATED INCOME** |**2(a) Congregation Giving**
Regular donations
One-off donations
Collections (open plate) at all services
Gift Aid from HMRC
**2(b) Charitable activities**
Church Events
Wedding, baptism and Funeral Fees
**2(c) Other Funds Generated:**
Property income
Grants
Bursary and Support Income
Resource Church Income
Listed Places of Worship Tax Refund
Heritage Lottery Fund Grant
**2(d) Event Income:**
Event income
**2(e) Investments**
Investment Interest
Dividend Income
Bank interest
**2(f) Other Income**
Other Income
**2(g) Trading Activity Income**
Trading Activity Income
**Total Consolidated Income**
**3 CONSOLIDATED EXPENDITURE**
**3(a) Church Activities**
Mission Outreach / Giving to other Organisations
Mission Evangelism
Wider Christian Community Support Incl. Church Planting
Sunday. Digital and Special Services
Clergy costs
Premises, Building and Maintenance costs
Administration and Central Costs
Worship and Prayer Ministry
Families, Youth and Children
Discipleship Expenses
Church Event Expenses
Miscellaneous expenses
**Total Church Activities**
**3(b) Event Activities**
Event Activities
**3(c) Building and Property Expenditures**
Church Building Restoration Project
Expenses Incurred for Property Income
Church Site Development
**3(d) Trading Activities**
Trading Activity Expenditures
**Total Consolidated Expenditure**|**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**TOTAL FUNDS**
**2020**
**TOTAL FUNDS**
**2019**
**£**
**£**
**£**
**£**
**£**
376,078
-
630
376,708
263,641
314,280
70
6,673
321,023
218,759
10,840
-
-
10,840
33,080
132,361
-
-
132,361
79,346
833,559
70
7,303
840,932
594,826
289
-
-
289
2,332
104
-
-
104
1,045
393
-
-
393
3,377
136,375
-
29,954
166,329
108,303
64,276
300,000
294,890
659,166
446,400
-
-
500
500
1,650
25,319
-
-
25,319
8,266
-
92,632
-
92,632
181,849
-
-
455,566
455,566
1,276,312
225,970
392,632
780,910
1,399,512
2,022,780
-
-
-
-
80
13
-
-
13
293
711
-
-
711
529
4,437
-
-
4,437
8,652
5,161
-
-
5,161
9,474
17,732
18,401
10,000
46,133
678
-
22,437
-
22,437
**1,082,815**
**433,540**
**798,213**
**2,314,568**
**2,631,215**
**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**TOTAL FUNDS**
**2020**
**TOTAL FUNDS**
**2019**
**£**
**£**
**£**
**£**
**£**
4,183
-
210,247
214,429
42,173
27,853
-
1,933
29,786
59,364
89,224
-
17,260
106,484
107,827
235,047
13,670
13,965
262,682
91,269
2,807
-
3,438
6,245
9,899
246,759
3,778
39,800
290,337
117,685
235,286
13,267
13,164
261,717
165,508
81,166
-
6,349
87,515
103,447
52,577
-
31,638
84,215
69,650
16,749
-
1,335
18,083
28,774
13,185
-
987
14,173
52,696
3,966
-
-
3,966
2,651
**1,008,800**
**30,716**
**340,116**
**1,379,632**
**850,943**
**-**
**-**
**-**
**-**
**61,233**
91,961
1,490,119
459,580
2,041,660
3,244,164
**-**
**-**
**-**
-
6,414
**-**
**-**
**-**
-
7,401
**-**
81,001
8,894
89,895
**-**
**1,100,761**
**1,601,836**
**808,591**
**3,511,187**
**4,170,155**| |---|---| 17 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2020** ## **4 Related Parties** ## **4(a) Hackney Church Experiences Limited** The PCC, through nominees, manages 100% of the issued share capital of Hackney Church Experiences Limited (registered number: 12470018) ("HCEL"), whose principal activities during the year were those of operating as a venue coordinator for gigs, music events and other hiring of the church spaces. HCEL also operates a Floristry business that sells flowers to the local community and offers floristry services to events held at church buildings. The Parish of Hackney and HCEL transact as independent entities. All distributions from trading reserves are donated to the Parish of Hackney. |**Turnover**
Venue Hire
Music Event Income
Floristry Sales
Other Income
**Total Turnover**
**Operating Expenditures**
General Expenses
Legal Costs
Music Consultants
Event Marketing and Communications
Floristry Marketing and Communications
Floristry Materials
Use of Hackney Church staff
**Total Operating Expenditures**
**Net (Loss)/Profit Retained in HCEL**
**Distributions to the Parish of Hackney**
**Accumulated Profit/(Loss) Brought Forward**
**Non-Charitable Trading Reserves**|**2020**
**2019**
**£**
**£**
625
-
20,000
-
1,714
-
98
-
**22,437**
**-**
466
-
3,350
-
7,000
-
1,097
-
2,582
-
1,076
-
65,430
-
**81,001**
**-**
**(58,564)**
**-**
-
-
**(58,564)**| |---|---| ## **4(b) St. John's Housing Trust** The PCC, through trustees, manages 100% of St. John's Housing Trust (Registered Charity number 1172228) ("SJHT"), whose principal activities during the year were to supply affordable housing to Hackney Church employees. Although the objectives of the charity are aligned to the church, the Parish of Hackney and SJHT transact as independent entities. |**Income**
Donations
Rental Income
Gift of Leasehold Property
**Total Income**
**Expenditures**
Administration Expenses
Repairs and Maintenance
Deprecation of Leasehold Buildings
**Total Expenditures**
**Net (Deficit)/Surplus Retained in SJHT**
**Accumulated Surplus/(Deficit) Brought Forward**
**Charitable Trading Reserves**|**2020**
**2019**
**£**
**£**
-
100
20,000
-
450,000
-
**470,000**
**100**
60
60
3,584
-
5,250
-
**8,894**
**60**
**461,106**
**40**
55
15
**461,161**
**55**| |---|---| 18 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2020** ## **5 GOVERNANCE COSTS** The remuneration to the auditors for the audit of the 2020 accounts was £12,950. (2019: £9,500) **----- Start of picture text -----**
|||| |---|---|---| |2020|2019| |£|£| |Wages and salaries (incl. PAYE)|608,050|417,530| |Employers Social security costs|44,923|31,255| |Employers Pension Costs|10,779|9,467| |663,752|458,252| **----- End of picture text -----**
## **6 STAFF COSTS** During the year the PCC employed the full time equivalent ("FTE") of 21.75 people (2019: 14.76) and on the basis of actual number of people employed regardless of FTE the number of people employed in the year 33.33 (2019: 22.16). HCEL and SJHT did not have any direct employees in 2020 (2019:nil). One employee earned in excess of £60,000 in the year 2020 (2019: One) with nil of Employers Pension Cost (2019: nil). Total remuneration for key management personnel was £65,000 in the year. (2019: £65,000) The above salary amounts include a remuneration for redundancy in the amount of £800. (2019: nil) Clergy members are employed by the Diocese of London and not by Hackney Church so their costs have not been included in the salary figures shown above. Hackney Church is also obliged to provide accommodation to its ordained staff and its policy is to provide similar accommodation to its offCommon Fund clergy as to that provided by the Diocese to the rector. As clergy are ex-officio members of the PCC they are in effect related parties in relation to their accommodation, but the details of this benefit provided by Hackney Church has not been separately analysed in these statements. **----- Start of picture text -----**
|||| |---|---|---| |7 RELATED PARTY TRANSACTIONS|2020|2019| |£|£| |Paid Bursaries of PCC Members|-|470| |Received from Hackney Parochial Council|7,000|14,000| |Received from South Hackney Parochial Council|-|1,500| |Donated to St. John's Housing Trust|-|100| |Paid to St. John's Housing Trust for accommodation|20,000| |Received from Hackney Church Experiences Limted for services rendered and supplies|76,086| **----- End of picture text -----**
## **7 RELATED PARTY TRANSACTIONS** Two members of the PCC are also trustees of the Hackney Parochial Council. Hackney Parochial Council charity is not a related party as defined by the Charities Commission however, the transactions are disclosed in the interest of transparency. The known amount given to the church by the members of the PCC and Clergy during their time in office in 2020 is £117,705 (2019: £61,323). There were no other disclosable transactions in respect of PCC members, persons closely connected with them or other related parties. No remuneration amounts were paid to Trustees during their time in office during the year. In addition, no amounts in regards to expenses were reimbursed that were not incurred directly on behalf, and for the benefit of, the Church. ## **8 TANGIBLE FIXED ASSETS** HCEL held no tangible fixed assets as of 31 December 2020. Tangible fixed assets below are fully held by the PCC. Leasehold Property is fully held by SJHT. **----- Start of picture text -----**
||||||||| |---|---|---|---|---|---|---|---| |PCC| |IT and|PCC|PCC|SJHT| |Computer|Furniture and|Production|PCC|PCC|Leasehold| |Equipment|Fixtures|Equipment|Vehicles|Subtotal|Property|Total 2020| |£|£|£|£|£|£|£| |Cost at 1 January 2020|16,305|23,710|67,297|-|107,312|-|107,312| |Additions during year|9,058|144,455|517,114|19,518|690,145|450,000|1,140,145| |-|-|-|-|-|-|-| |Disposals during year| |Cost at 31 December 2020|25,363|168,165|584,411|19,518|797,457|450,000|1,247,457| |Depreciation at 1 January 2020|12,528|10,594|59,525|-|82,647|-|82,647| |Charge for the year|3,981|31,912|91,447|1,355|128,696|5,250|133,946| |-|-|-|-|-|-|-| |Disposals during year| |Depreciation at 31 December 2020|16,509|42,506|150,972|1,355|211,343|5,250|216,593| |Net Book Value at 1 January 2020|3,777|13,116|7,772|-|24,665|-|24,665| |Net Book Value at 31 December 2020|8,854|125,659|433,439|18,163|586,114|444,750|1,030,864| **----- End of picture text -----**
19 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2020** ## **9 STATEMENT OF FUNDS** |**9 STATEMENT OF FUNDS**|||||||| |---|---|---|---|---|---|---|---| ||**At 1st January**
**2020**|**Income**|**Gains from**
**Investments**|**Gifts of**
**Property**|**Expenditures**|**Transfer to**
**Other Funds**|

**At**
**31st December**
**2020**| ||**£**|**£**|**£**|**£**|**£**|**£**|**£**| |**Unrestricted Funds**|||||||| |Unrestricted Fund|396,697|1,082,815|6,574|-|(1,100,761)|(337,170)|48,156| |**Total Unrestricted Funds**|**396,697**|**1,082,815**|**6,574**|**-**|**(1,100,761)**|**(337,170)**|**48,156**| |**Designated Funds**
Experiences Fund
St. Luke's Garden Fund
London Aged Christian Society
St. Luke's Quinquennial Fund
St. Luke's Building Fund
Building Restoration Fund
HCEL Trading Activities|144,507
1,085
120
30,737
3,500
758,057
-|16,030
-
-
-
-
395,073
22,437|-
-
-
-
-
-
-|-
-
-
-
-
-
-|(26,757)
(278)
-
-
(3,500)
(1,490,300)
(81,001)|-
-
-
-
-
337,170
-|133,780
807
120
30,737
-
-
(58,564)| |**Total Designated Funds**|**938,006**|**433,540**|**-**|**-**|**(1,601,836)**|**337,170**|**106,880**| |**Restricted Funds**
Lighthouse Project (Previously Open Doors)
Lighthouse LYN Christmas
National Lottery Heritage Emergency Fund
Hackney Parochial Charity
St. John's Housing Fund
Vicar's Discretionary Fund
Infrastructure Grant Fund
Festival Bursaries and Support
Ouseley Choir Grant
Retirement Fund
All Saints Church West Ham
St. Leonard's Church Shoreditch
St. Mary's Church Leyton
Youth BLMF
Youth Minster
Heritage Lottery Fund
SJHT Charity Activities|68,635
-
-
1,435
-
3,423
7,197
-
1,340
169
-
-
3,070
-
-
-
55|134,019
51,984
46,600
5,500
-
-
500
-
-
10,000
25,000
40,567
11,666
16,811
455,566
20,000|-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
450,000|(150,055)
(51,360)
(40,038)
(6,935)
(20,000)
(3,423)
(5,690)
-
(990)
-
(10,000)
(17,885)
(32,653)
(11,666)
(13,437)
(455,566)
(8,894)|-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|52,599
624
6,562
-
(20,000)
-
1,507
500
350
169
-
7,115
10,984
-
3,374
-
461,161| |**Consolidated Eliminations in Restricted Funds**
St. John's Housing Fund
SJHT Charity Activities|85,324|818,213
(20,000)|-
-
-|450,000
-
-|(828,591)
20,000
-|-
-
-|524,946
20,000
(20,000)| |||(20,000)|-|-|20,000|-|-| |**Total Restricted Funds**|**85,324**|**798,213**|**-**|**450,000**|**(808,591)**|**-**|**524,946**| ||||||||| |**Total Funds**|**1,420,027**|**2,314,568**|**6,574**|**450,000**|**(3,511,187) **|**-**|**679,982**| ## **Restricted Funds of the PCC** The Lighthouse Project (previously named Open Doors) is to support local people in need within the local community. The Lighthouse LYN Christmas fund is a grant from Love Your Neighbour for delivering Christmas essential food and supply boxes for Christmas 2020 The National Lottery Heritage Emergency Fund is a grant to help cover the costs of the heritage building during lockdown and re-openings The Hackney Parochial Charity Fund supports local people living below the poverty line and is used for Night shelter & Foodbank. The St. John's Housing Fund represents the support from and paid housing costs to St. John's Housing Trust. The Vicar's Discretionary Fund is for use by the Vicar for Pastoral and support of the congregation and community The Infrastructure Grant Fund is a anonymous gift for purchases of office furniture and equipment. The Festival Bursaries and Support Fund represents grants and monies received for the support of congregation to attend Church and religious events. The Ouseley Choir Grant is to support upcoming worship staff within the church. The Retirement Fund has been in place for some time and is from special retirement collections. The All Saint's Church West Ham is for monies received and incurred for the support of All Saint's Church in West Ham The St. Leonard's Church Shoreditch is for monies received and incurred for the support of St. Leonard's Church in Shoreditch The St. Mary's Church Leyton Trust is for monies received and incurred for the support of St. Mary's Church in Leyton. The Youth BLMF (Bishop of London's Mission Fund) is a grant toward the employment of a youth pastor. The Youth Minster is a restricted grant toward expanding Youth ministry across the Stepney area. The Heritage Lottery Fund grant is for extensive refurbishment of the church building. 20 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2020** ## **10 ANALYSIS OF ASSETS BY FUND** |**10(a) Group Assets by Fund**
Leasehold Properties
Fixed Assets for church use
Fixed asset Investments
Current Assets
Liabilities due within one year
Liabilities due after one year
**Total Group Assets by Fund**
**10(b) PCC Assets by Fund**
Fixed Assets for church use
Fixed asset investments
Current Assets
Liabilities due within one year
Liabilities due after one year
**Total PCC Assets by Fund**|**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**Total**
**£**
**£**
**£**
**£**
-
-
444,750
444,750
437,120
133,780
15,214
586,114
49,936
31,664
-
81,600
858,551
(58,564)
74,674
874,662
(297,451)
-
(9,692)
(307,143)
(1,000,000)
-
-
(1,000,000)
**48,156**
**106,880**
**524,946**
**679,982**
**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**Total**
**£**
**£**
**£**
**£**
437,120
133,780
15,214
586,114
49,936
31,664
-
81,600
862,858
75,055
937,913
(301,759)
-
(26,484)
(328,242)
(1,000,000)
-
-
(1,000,000)
**48,156**
**165,444**
**63,785**
**277,385**| |---|---| |**11 DEBTORS AND PREPAYMENTS**
**Debtors**
Gift Aid tax recoverable
Donations and Grants Receivable
Amounts Due from HMRC for VAT Receivable
Amounts Due from Listed Places of Worship
Amounts Due from Heritage Lottery Fund
Accounts Receivable
Amounts Receivable from HCEL
Other Debtors
**Debtors for the year ended 31 December 2020**
**Prepayments and Deposits**
Deposits for Curate Housing
Prepayments on Church Building Works and Equipment
Rental Prepayments for Curate Housing
Other Prepayments for Church Activities
**Prepayments for the year ended 31 December 2020**|**Group 2020**
**Group 2019**
**£**
**£**
10,805
56,564
-
10,000
3,799
127,834
6,244
75,868
77,550
542,364
31,922
38,420
-
-
12,801
2,961
143,121
854,011
-
2,910
-
240,240
1,573
-
14,299
10,059
15,872
253,209|**PCC 2020**
**PCC 2019**
**£**
**£**
10,805
56,564
-
10,000
-
127,834
6,244
75,868
77,550
542,364
31,675
38,420
89,172
-
16,951
2,961
232,397
854,011
-
2,910
-
240,240
1,573
-
15,299
10,059
16,872
253,209| |---|---|---| ## **12 INVESTMENTS** HCEL and SJHT had no investments throughout 2020 (2019: nil). Amounts below represent Investments held by the PCC. |**Investments Activity**
CCLA - Home Mission Deposit Account
CCLA - Investment Account
CCLA - Investment Account
**Investments by Fund**
CCLA - Home Mission Account
CCLA - Investment Account
CCLA - Investment Account|**Market Value**
**as of 1 Jan 2020**
**Unrealised**
**Gains on**
**Investments**
**Dividend and**
**Interest**
**Income**
**Transfer of**
**Income to**
**other accounts**
**Market Value**
**as of 31 Dec**
**2020**
**£**
**£**
**£**
**£**
**£**
3,052
-
13
-
3,065
48,254
4,937
711
(711)
53,191
23,707
1,637
-
-
25,344
75,013
6,574
724
(711)
81,600
**Unrestricted**
**Designated**
**Restricted**
**Total 2020**
**Total 2019**
**£**
**£**
**£**
**£**
**£**
3,065
-
-
3,065
3,052
21,527
31,664
-
53,191
48,254
25,344
-
-
25,344
23,707
49,936
31,664
-
81,600
75,013| |---|---| The historic cost of investments is £53,052. 21 ## **Parochial Church Council of Hackney Church Notes to the Financial Statements** ## **For the year ended 31 December 2020** ## **13(a) LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Accounts Payable
Amounts Payable to SJHT
Amounts Payable to Employees for Expenses
Other creditors
PAYE and NI due to HMRC
VAT Payable
Audit Fee
Rental Deposits held
London Diocese
Other Accruals|**2020**
**2019**
**£**
**£**
78,625
404,071
-
-
818
2,661
185,286
7,453
19,269
(10,081)
-
-
12,950
9,500
8,300
4,500
-
300,000
1,895
22,185
**307,143**
**740,289**
**Group**|**2020**
**2019**
**£**
**£**
77,222
404,071
17,316
-
818
2,661
185,286
7,453
19,269
(10,081)
5,186
-
12,950
9,500
8,300
4,500
-
300,000
1,895
22,185
**328,242**
**740,289**
**PCC**| |---|---|---| ## **13(b) LIABILITIES: AMOUNTS FALLING DUE AFTER ONE YEAR** |Long Term Loan|**2020**
**2019**
**£**
**£**
1,000,000
1,000,000
1,000,000
1,000,000
**Group**|**2020**
**2019**
**£**
**£**
1,000,000
1,000,000
1,000,000
1,000,000
**PCC**| |---|---|---| A long term drawdown facility was agreed with an unrelated party in late 2019. The full amount of £1,000,000 was drawn in December 2019. The borrower reserves the right to charge interest which, if charged, would be calculated at NatWest Base rate plus 1%. The capital of the loan is repayable in amounts of £250,000 on December 2023, December 2024, December 2025, and December 2026. ## **14 LEASE COMMITMENTS** Hackney Church has two rental flat lease agreement with St. John's Housing Trust for the accommodation of clergy and a verger. The agreements extend to the 15th of June 2021 with a total cost per month of £2,800. The amounts are invoiced monthly and the contract can be terminated with one month's notice given on the 15 May 2021. Other rental property agreements can be terminated with one month's notice. ## **15 COVID-19** The scale and spread of Covid-19 (coronavirus) worldwide has caused and will continue to cause operational variations to the charity’s activities. Although the outbreak has not impacted the regular charitable donations, the Church has invested significantly in digital equipment in order to reach the local congregation and beyond. The Trustees continue to monitor the situation very closely and are actively adapting to the restrictions and changes in social gatherings. 22