Parish of Hackney Annual Report and Accounts 2022 Hackney Church ANNUAL REPORT 2022 lJanuary- December 2022) 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 Mernbers of the Parish Church Council IPCCI who served from 1 January 2022 to 31 December 2022 Rev'd Al Gordon - Rector Rev'd Mark Nelson - Associate Rector Rev'd Naomi Maxwell Rev'd Christa Brodie-Levinsohn Ito September 2022) Annotinette Bramble - Churchwarden Jennifer Jamie - Churchwarden Vera Preedy - Licenced Lay Minister John Roe - Licenced Lay Minister Temitope Taiwo General Synod Member John Geach - Deanery Synod Representative John Parmiter -Deanery Synod Representative Peter Ottino - Deanery Synod Representative Olufisayo Sonuga - Deanery Synod Representative Tim Last- Deanery Synod Representative (to May 2022) Temi Obembe- Deanery Synod Representative (to May 2022) Elected Members Martyn Bearfoot Natasha Duursma (from May 2022) Michelle Fontaine John Fyson Linda Harris Sam Lawson Johnston -Lay Vice Chair Dave Lochhead Patricia Musgrave Laura Napper Graeme Nicoll - Co-Treasurer Joshua Olomolaiye - Co-Treasurer Nerine O'connor Tolu Obafemi Ifrom May 2022) Yvonne Tapper (from May 20221 Mike Woods Yaa Appiah-Badu (to May 2022) Ruth Best - Secretary Ito May 20221 Rachel Millar (to May 2022) Co-opted members Danna Brown Zoe Huggins - Secretary from May 2022 PRIMARY BANKERS HSBC Bank Plc, 69 Pall Mall, London, SW1Y SEY Brewers Chartered Accountants, Bourne House, Queen Street 6omshall, 6U5 9LY AUDITOR STRUCTURE, GOVERNANCE AND MANAGEMENT Ob'ectives and activities of Hackne Church The objective and vision of Hackney Church is to bring hope to the people of East London. The Parish of Hackne The Parish of Hackney consists of two church buildings, St. John at Hackney and St. Luke's of Homerton. St. John èt Hackney has extensive grounds including a front garden area with parking, and a rear wèlled garden which is open to the community. The church offices and halls are located adjacent to the St. John at Hackney within Spiller House. The objectives and attivities of Hackney Church take place in all locations within the Parish. 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 the trading entity are also trustees of Hackney Church and any profits generated by HCEL are to be donated to Hackney Church. St. John's Housin Trust St. John's Housing Trust ISJ HT) is a charitable entity whereby the trustees are also trustees of Hackney Church and 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 accornmodation 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. AINT Hackney Church belongs to a collaboration of four parishes where the Rev'd Al 6ordon is the incumbent. The concept of SAINT is for all parishes to deliver ministry with a collaborative approach to content, excellence and outreach objectives. Each parish is encouraged to press into the needs of their individual local parish, whilst also displaying the SAI NT logo so that people moving around East London know that the churches operate with similar standards. Res onsibilities of the PCC The Parochial Church Council (PCC) has the responsibility, with the Rector. of promoting in the parish. the whole mission of the Church, pastoral, evangelistlc, 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 members 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. nd The management of the church is overseen by the PCC and delegated to Rev'd Al Gordon. During 2022, the church clergy team consisted of Rev'd Mark Nelson, Christa Brodie-Levinsohn (through September 20221 and Naomi Maxwell whose roles are to look after the internal ministries and community outreaches of the church. Other clergy in training are Ordinands.. Cyril Farrar (from September 20221,. Nate Hayes,. Robin Talbot {through July 2022),. Temitope Taiwo,. and Shawn Woods. As of December 2022, the lay staff team consisted of 28 staff members operating within various ministries including Kids, Youth, Worship, Outreach, Discipleship, Evangelism and Central Services. In addition, many on the lay staff team also serve as Pastors within their ministry and support the work of other SAINT parishes. 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 member5 conf irm 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 456 names on the Electoral Roll at the end of the revision process in 2022 (434 in 2021). Services and Attendance Three in person services took place at St John at Hackney on Sundays throughout 2022 along with a Sunday Youth Service at St Luke's Homerton. These services were." 10am Comrnunion", 11am Family,. 6pm Informal and the 11am Youth Service. Kids and Youth work continues to thrive, with around 200 0-18's engaging with services and events in the parish each week. In June 2022, our live online Service moved from 11am to 6pm, which has proved a very successful move, with several hundred people still engaging with church digitally each week. In 2022, the average in-person Sunday attendance across SAINT parishes was 701 Ioctober 2021.. 659), with an attendance of 427 in the parish of Hackney (October 2021.. 329). Average online Sunday service attendance per week in 2022 was 247 (October 2021.. 304). 1Ster of occasional services In 2021 there were five weddings, fifteen baptlsms and four funerals officiated. Worshi The contemporary worshipping life at SAINT has developed in a significant way over the last year. The worship crew is made up of over 80 volunteers who serve across six contemporary Sunday services every week. Alongside this, the staff and volunteers serve in midweek services and events such as Alpha and Kingdom Come. The team is well trained with regular training nights throughout the year which invest in their skills as musicians and in their faiths. We have also recently begun the journey of writing new songs that have been written by the department and volunteers. 2022 has been another evenrful year for the choir and for troditional music in Hackney. After the lifting of the pandemic restrictions, the choir were able to practice and engage more in choral activities, and new opportunities to work with the other SAINT locations were developed. Our choral scholarship scheme has continued across the year, providing a very valuable opportunity to young aspiring singers, and still partly funded through the generous contribution of the Ouseley Trust. The 10am Communion service has had new musical elements introduced across the seasons, with a sung Agnus Dei during Lent, and the Gloria returning to the service during Eastertide. A particular highlight for the choir was singing for the Commemoration of the life of Her Late Majesty Queen Elizabeth 11, where the choir and organ led music from the balcony, including a setting of the Agnus Dei (Lamb of God) specially composed by the Director of Music for the occasion. In addition, we were able to support two new musical commissions (from Luca Kocsmar5zky and Deborah Pritchard) for our Good Friday service. The choir has also led worship on a number of other special occasions over the year, including a service of Evensong for The Middlesex County Association and London Diocesan Association of Bellringers, Holy Week, All Souls, Remembrance Sunday and Carol services. The Choir combined both traditional and contemporary worship elements with great success in Hackney, as well as supporting the SAI NT parish of St Mary's, Leyton. The congregations have commented on the high quality of the choir's contribution, and we look forward to another year of similar work in 2023. We have also had an increased number of organists join us for various services over the year. The installation of a humidification system to the organ this year has significantly improved its funttion and will enable greater and more varied use of the instrument for services and events. He Bab Hey Baby is our baby group14 and under) that meets on Monday mornings in the church with the purpose of forming a community in a safe place. Hey Baby continues to meet the demand of provision for the very youngest in our community with over 100 babies, along with their parent or carers, lining up outside the doors on a weekly basis. We continue to see large number of our Hey Baby families attend our special Sundays such as Superhero Sunday, Easter Sunday, Carol Services and Nativity. Kids We have seen the kids, work grow in the last year with many families returning to church after the pandemic. In Sept 2022 we launched a new group, 'Hey Kids,, to cope with the demand in our under 7,5. This has led to having to increase the number of volunteers that serve each week and created an opportunity for the children to experience teaching and activities that are much more tailored to their specific age range. Kid's 2, for ages 7-10, has seen many children make first time commitments by inviting Jesus into their hearts and many have been excited to share their own 6od experiences related to answered prayer. Our interactions with the local schools have grown. In 2022, six primary schools engaged with the church through student visits or having our Family pastor visit the school. We continue to carry out weekly clergy assemblies in the local school, Church School SJSU, along Wlth hosting their annual Christmas, Easter and Leavers assembly at St John's Church. Youth The youth ministry111-18 year-oldsl Sunday Service has continued to grow throughout 2022 within our St Luke's, Homerton site. On a Sunday morning we gather all our youth for their own worship, games, teaching, and prayer. On average, 37 Youth attend the service each week.12021.. 33) In 2022. we saw Youth East establish itself as a unity movement among young people in East London,. pursuing Encounter, Evangelism and Empowerment. Hackney Church hosted f ive gatherings throughoutthe year, with nineteen different churches in attendance and saw over 500 attendees across our events, with many first time commitments to Jesus, bibles distributed and youth ministries empowered for their local context. In 2022 we were able to provide Youth with bonding and engaging experiences including a Youth group at the Focus festival, learning day at the Natural History Museum, Youth space within the Renaissance Conference and much more. Kin The'Rhythms prayer gathering, is held every Tuesday morning from 8-9am, for an hour of informal prayer and worship. Seasonal 'Kingdom Come, prayer events are powerful evenings of encounter with 6od and took place throughout the year in 2022. Other ad hoc prayer events also took place during 2022. Communications The beginning of 2022 presented challenges for our communications due to covid restrictions, but this eased as the year progressed. Online and digital platforms continued to be a major focus, and our reach and engagement grew steadily throughout the year. Multi-plafform communication and has really helped to increase attendance at services and events. We believe that excellent communication helps build a stronger community within the Hackney Parish. The Alpha course ran three times in 2022. Alpha has been instrumental in growing the church, with a significant number of those attending joining the church by attending on a Sunday, volunteering on one of our crews or joining a connect group where they continue to study scripture and form community. Alpha continues to be a key area of focus going forward. hthouse Lighthouse is the ministry of Hackney Church which works with vulnerable and marginalised people, helping to alleviate need through our pioneering Drop-in Lunch and Emergency Food Distribution. Lighthouse models a culture of hope,. honour. openness, proximity and empowerment to all those who use the services provided. We focus on building lasting relationships with our guests, providing practical asSlStance. restoring dignity and guiding individuals toward relevant service5 SO they can build a future f illed with hope. Our Weekly lunches gather people from a wide range of backgrounds, all facing challenging circumstances nd creates è community of belonging and support. We provide the sit-down meals once per week at each SAINT location including St Luke's Homerton, St Mary's Leyton, All Saints West Ham and St Leonard's Shoreditch. During 2022, Lighthouse distributed 4,571 meals and hosted 2,874 visits. At each session, guests are encouraged to access much needed support through clear signposting. Throughout the year, we have developed deeper relationships with external support providers including Hackney Council and hosted the launch of the Hackney Money Hub. Through our relationship with City Harvest, Felix Project and other local groLJPS, we continue to re-distribute surplus food to those in need. We are grateful to Hygiene Bank, Bloody Good Period and Inkind Direct as we continue to develop our monthly hygiene packs that are a lifeline for those in the cost of living crisis. Clothing donations were again an irnportant provision. Partners such as Outside In provided a monthly clothing distribution for Lighthouse guests to replenish basics such as socks, hats and shirts. The Gardens at Lighthouse continued to develop; including a highlight of sowing an edible garden that Lighthouse attendees were able to harvest. Monthly workshops for learning floristry or gardening resulted in 30 individuals participating with an average of 6 people per session. In late December, Lighthouse distributed 996 Christmas Boxes irnpacting 1496 people. We worked across the borough of Hackney, Waltham Forest and Newham through 19 different local charities, schools and churches. spreading a message of Christièn hope as well as a practical gift. Lighthouse is exceptionally grateful to all of those that volunteer and donate much needed funds and supplies, including the generous ongoing donations of Hackney Parochial Charities and Church Revitalisation Trust, who enable our work to thrive. RENAI AN th Churches from around the world have been visiting Hackney Church (as SAI NT) since 2018 to learn from their creativity and the vision of churches as cathedrals of creativity, taking it back to their local church. The Renaissance Conference began after the pandemic in 2021 to gather many of these leaders and churches from across the world for 24 hours of creativity. In 2022, Hackney Church launched their first full conference with over 800 people in attendance for two days of wonder and the response was overwhelming. In 2022, following the conference, RENAISSANCE launched as a new school of creativity with a vision to help people, particularly young leaders, encounter their Creator, to equip the creative and empower the local church to become cathedra15 of creativity. releasing creativity and changing the world. The big idea is to See a new renaissance that flows from the church into culture. So far over 75 churches across the world have expressed an interest in joining the RENAISSANCE movement, out of a desire to see a new renaissance in their own cities. In late 2022, SAI NT committed to building a team around the school to enable and equip churches and Christians across the world in creativity. All the courses, activities and events outlined above could not take place without the much-apprecNated help of volunteers from the Congregat￿On. FABRIC AND FACILITIES REPORT Quinquennial Inspection Report The Quinquennial inspection for St. John at Hackney Church was carried out in March 2017 with a number of recommendations that were actioned through the Restoration project. The Quinquennial inspection recommendations for St. Luke's, Homerton have been made and are in the process of bein9 Implemented. Use of Church Building by Hackney Church Experiences Limited Hackney Church Experiences Limited IHCEL). was launched in October 2020 for the purpose of hosting large scale events and gatherings such as concerts and assemblies. In 2022. their first full year of business. HCEL delivered a number of high prof ile events such as Biffy Clyro, Robert Glasper and Japanese Breakfast whilst hosting important community events such as Hackney Council's flagship Anti-Racist Conference, Hackney Council Winter Warmer, NHS CAMHS sessions and N HS Blood Transfer days. These events provided excellent promotional benefits and helps bring the Church back to the forefront of the community. Other land and property arrangements.. Pay and Display car park continues to operate via a contract with JustPark. The kiosk in the churchyard is being used for garden storage and the front portion being let to The Quarter Store cafe. The church permits the usage of cabling under the footpaths for additional church revenues. FINANCIAL REVIEW 2022 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 2022 was £791,295 (2021.. £947,809). We are immensely grateful to God and to all those who gave so generously. Other funding was from grants. Income wa5 also generated from the rental of the churchyard and parking areas. These activities were able to generate income of £153.01312021'. £146,815). In 2022, Hackney Church Experiences Limited generated a small profit of £5,668 (2021.. £9,847). The accumulated net liabilities of £43,049 (2021.. £48,727) remain which arose f rom start-up expenditures. We expect this deficit to reduce throughout 2023 as we continue to rent the church building from time to time for commercial purposes. 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 accumulated giving at any one time. Total unrestricted and designated reserves at 31 December 2022 amounted to (£559,621) (2021.. (£353)). 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. The war in Ukraine has impacted the U K with increases in the cost of utilities and general inflation. Hackney Church has considered the utility costs and general inflation in the financial budgets. The trustees and management are making operational changes, where appropriate, to minimise the impact of the increases. The trustees are confident that with the continued support of the congregètion and appropriate management of expenditure, the church is a going concern and will continue to be financially viable. The budgets 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. Grants 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 policies adopted are in accordance with the appropriate Statement of Recommended Practice on Accounting by Charities and the Accounting Regulations and with applicable accounting standards, 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 f inancial position of the church, and to enable them to ensure that the f inancial statements comply with applicable Accounting Standards and Statements of Recommended Practice and the regulation5 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 Hèckney Parish on the 23rd of May 2023 and signed on their behalf by Rev'd Al Gordon Rector Date.. 7 December 2023 ## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS 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 2022 which comprise the Consolidated Statement 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 Financial Reporting Standard 102 “ _The Financial Reporting Standard applicable in the UK and Republic of Ireland”_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion **:** - the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or 10 - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; 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 page 9, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations is as follows: - We identified those laws and regulations considered to have a material effect on the financial statements and operations of the parent entity, including the financial reporting framework, data protection legislation, health and safety and safeguarding regulations. These matters were discussed amongst the engagement team at the planning stage and the team remained alert to noncompliance throughout the audit. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and Charity members as to whether the charity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Charity meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). A further description of our responsibilities is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 11 ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Andrew Skilton (Senior Statutory Auditor)** For and on behalf of Brewers Chartered Accountants, Statutory Auditor Bourne House Queen Street Gomshall Surrey 12 December 2023 Brewers Chartered Accountants 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. 12 ## **Parochial Church Council of Hackney Church Consolidated Statement of Financial Activities For the year ended 31 December 2022** |**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**TOTAL FUNDS**
**2022**
**Note**
**£**
**£**
**£**
**£**
**INCOME FROM:**
Congregation Giving
2(a)
736,045
-
55,250
791,295
Charitable Activities
2(b)
58,626
-
30,210
88,836
Other Funds Generated
2(c)
244,459
-
190,743
435,201
Investments
2(d)
2,561
-
-
2,561
Other Income
2(e)
4,102
-
-
4,102
Collections for other SAINT Parishes
2(f)
-
-
187,722
187,722
Other Trading Activities
2(g)
-
438,210
29,612
467,822
**TOTAL INCOME**
**1,045,792**
**438,210**
**493,537**
**1,977,539**
**EXPENDITURE ON:**
Church activities
3(a)
1,471,424
53,512
260,674
1,785,609
Building Projects
3(b)
130,851
-
-
130,851
Expenses for other SAINT Parishes
3(c)
-
-
206,387
206,387
Other Trading Activities
3(d)
-
432,542
13,806
446,347
**TOTAL EXPENDITURE**
**1,602,275**
**486,054**
**480,866**
**2,569,195**
**NET INCOME/(EXPENDITURE)**
**(556,483)**
**(47,844)**
**12,670**
**(591,656)**
(Losses)/Gains on Investment assets
(9,094)
-
-
(9,094)
**NET MOVEMENT IN FUNDS**
**(565,577)**
**(47,844)**
**12,670**
**(600,750)**
Balances brought forward at 1 January 2022
(152,878)
62,408
508,564
418,094
**BALANCES CARRIED FORWARD**
**AT 31 DECEMBER 2022**
**(718,455)**
**14,564**
**521,234**
**(182,656)**|**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**TOTAL FUNDS**
**2021**
**£**
**£**
**£**
**£**| |---|---| ||893,889
-
53,920
947,809
24,605
-
53
24,658
281,561
-
261,564
543,125
1,224
-
-
1,224
20,590
-
-
20,590
-
-
51,159
51,159
-
356,544
9,800
366,344
**1,221,869**
**356,544**
**376,496**
**1,954,909**
1,413,497
54,319
232,907
1,700,723
22,379
-
-
22,379
-
-
146,177
146,177
-
346,697
13,795
360,492
**1,435,876**
**401,016**
**392,879**
**2,229,771**
**(214,007)**
**(44,472)**
**(16,383)**
**(274,862)**
12,973
-
12,973
**(201,034)**
**(44,472)**
**(16,383)**
**(261,889)**
48,156
106,880
524,946
679,982
**(152,878)**
**62,408**
**508,564**
**418,094**| 13 ## **Parochial Church Council of Hackney Church Statements of Assets and Liabilities For the year ended 31 December 2022** |**2022**
**2021**
**Note**
**£**
**£**
**FIXED ASSETS**
Investments
12
85,521
94,575
Tangible assets
8
628,568
827,789
**714,089**
**922,364**
**CURRENT ASSETS**
Current account & Cash on Hand
130,260
348,684
Church of England Cash Deposit fund
154,406
252,839
Debtors
11
216,120
227,425
Prepayments
11
14,958
7,622
**515,744**
**836,570**
**LIABILITIES: AMOUNTS FALLING DUE WITHIN**
**ONE YEAR**
13(a)
(369,449)
(340,840)
**NET CURRENT ASSETS**
**146,295**
**495,730**
**LIABILITIES: AMOUNTS FALLING DUE AFTER**
**MORE THAN ONE YEAR**
13(b)
(1,043,040)
(1,000,000)
**NET ASSETS**
**(182,656)**
**418,094**
**FUNDS**
9
Unrestricted
(718,455)
(152,878)
Designated
57,613
111,125
Restricted
85,862
66,398
Designated Non-Charitable Trading Reserves
(43,049)
(48,717)
Restricted Reserves of the Consolidated Charity
435,372
442,166
**(182,656)**
**418,094**
**GROUP**|**2022**
**2021**
**£**
**£**
85,521
94,575
191,437
376,167
**276,958**
**470,742**
49,329
317,991
154,406
252,839
334,094
263,701
14,958
8,122
**552,787**
**842,653**
(361,688)
(288,750)
**191,099**
**553,903**
(1,043,040)
(1,000,000)
**(574,983)**
**24,645**
(617,234)
(111,478)
57,613
111,125
(15,362)
24,998
-
-
-
-
**(574,983)**
**24,645**
**Hackney Church**| |---|---| Approved by the Parochial Church Council and signed on its behalf by: Rev'd Al Gordon Rector of the Parish of Hackney DATE: 7 December 2023 14 ## **Parochial Church Council of Hackney Church Consolidated Cash Flow Statement** ## **For the year ended 31 December 2022** |**Parochial Church Council of Hackney Church**
**Consolidated Cash Flow Statement**
**For the year ended 31 December 2022**||| |---|---|---| |_Cash Flows from Operating Activities:_
**Note**
**Net Expenditure for the Year**
Adjustments for:
Depreciation
8
Dividend and Interest Income from Investment Activities
2(d)
Unrealised Losses/(Gains) on Investment Assets
Net expenditures on Building Restoration Project
Less Grants Received as Financing Activities
(Increase)/Decrease in operating activity debtors
11
Decrease/(Increase) in operating activity prepayments
11
Increase/(Decrease) in operating activity creditors
13
**Net Cash Flow from Operating Activities:**
_Cash Flows from Building Restoration Project:_
Net expenditures from Building Restoration Project
3(b)
Decrease in Building Restoration debtors
(Decrease) in Building Restoration creditors
13a
**Net Cash from Building Project Activities:**
_Cash Flows from Investing Activities:_
Purchase of other fixed assets
8
Interest received on Investment Activities
2(d)
**Net Cash from Investing Activities:**
_Cash Flows from Financing activities:_
Grants received in Current Year from Financing Activities
Loan - Stewardship
**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**|**2022**
**2021**
£
**£**
(600,750)
(261,889)
256,863
245,781
(2,601)
(1,224)
9,056
(12,973)
130,851
22,379
(156,118)
(240,233)
11,305
(141,044)
(7,336)
8,250
28,609
62,373
**(330,121)**
**(318,582)**
(130,851)
(22,379)
56,739
(28,676)
**(130,851)**
**5,683**
(57,642)
(42,705)
2,601
1,224
**(55,041)**
**(41,481)**
156,118
240,233
43,040
-
199,158
240,233
**(316,856)**
**(114,147)**
(316,857)
(114,147)
601,523
715,670
**284,666**
**601,523**
**Group**|| |||**2021**
**£**
(261,889)
245,781
(1,224)
(12,973)
22,379
(240,233)
(141,044)
8,250
62,373
**(318,582)**
(22,379)
56,739
(28,676)
**5,683**
(42,705)
1,224
**(41,481)**
240,233
-
240,233
**(114,147)**
(114,147)
715,670
**601,523**| 15 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2022** ## **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 operational or financial control. Saint Music Collective Limited (SMC), Company Number 13448340, was formed in June 2021 for the purpose of recording and promoting Christain worship music. The majority of SMC's directors are also trustees of Hackney Church. At this time, the activies of SMC are immaterial In 2022, the accounts of SMC were not consolidated as the amounts are immaterial. Transactions made between Hackney Church and SMC are disclosed in Note 7. 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 income and unrestricted reserves are sufficient to support the activities planned for 2023 and for the foreseeable future. The trustees are confident that with the continued support of the congregation and appropriate management of expenditure, the negative unrestricted fund position will be managed without adversity. Therefore, the accounts are prepared based on Hackney Church being a going concern. The PCC are aware of the impacts due to the COVID-19 pandemic and the current economic position and are taking precautionary measures with budgeted expenditures in order to be flexible if the situation arises. The trustees are confident that with the continued support of the congregation and appropriate management of expenditure, the church is a going concern and will continue to be financially viable during the ongoing COVID crisis and impact of the war in Ukraine. 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. ## **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. 16 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2022** ## **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. 17 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2022** ## **2 CONSOLIDATED INCOME** |**2(a) Congregation Giving**
Regular donations
One-off donations
Collections (open plate) at all services
Gift Aid from HMRC
Special appeals
**2(b) Charitable activities**
Church Events
Wedding, baptism and Funeral Fees
**2(c) Other Funds Generated:**
Property income
Grants
Resource Church Income
Listed Places of Worship Tax Refund
**2(d) Investments**
Investment Interest
Dividend Income
Bank interest
**2(e) Other Income**
Other Income
**2(f) Donations Collected for Other SAINT Parishes**
Collections for SAINT Parishes
**2(g) Trading Activity Income**
HCEL
SJHT
**Total Consolidated Income**
**3 CONSOLIDATED EXPENDITURE**
**3(a) Church Activities**
Outreach / Giving to other Organisations
Evangelism Expenses
Wider Christian Community Support
Sunday. Digital and Special Services
Clergy Expenses
Premises, Building and Maintenance costs
Administration and Central Costs
Worship and Prayer Ministry
Families, Students, Youth and Children
Discipleship Expenses
Church Event Expenses
Miscellaneous Expenses
**Total Church Activities**
**3(b) Building and Property Expenditures**
Church Building Restoration Project
**3(c) Expenses Incurred on behalf of other SAINT Parishes**
Expenses on behalf of other SAINT Parishes
**3(d) Trading Activities**
HCEL
SJHT
**Total Consolidated Expenditure**|**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**TOTAL FUNDS**
**2022**
**TOTAL FUNDS**
**2021**
**£**
**£**
**£**
**£**
**£**
562,044
-
-
562,044
465,041
43,312
-
23,351
66,663
333,808
2,491
-
-
2,491
8,223
128,199
-
-
128,199
140,737
-
-
31,898
31,898
-
736,045
-
55,250
791,295
947,809
53,647
30,210
83,857
19,464
4,979
4,979
5,194
58,626
-
30,210
88,836
24,658
153,013
153,013
146,815
81,161
156,118
237,278
367,453
9,683
34,625
44,308
25,969
602
602
2,888
244,459
-
190,743
435,201
543,125
-
2
-
737
2,561
2,561
485
2,561
-
-
2,561
1,224
4,102
4,102
20,590
-
187,722
187,722
51,159
-
**-**
438,210
438,210
356,544
-
29,612
29,612
9,800
**1,045,792**
**438,210**
**493,537**
**1,977,539**
**1,954,909**
**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**TOTAL FUNDS**
**2022**
**2021**
**£**
**£**
**£**
**£**
**£**
-
-
148,696
148,696
136,480
46,305
-
88
46,393
30,633
77,252
-
-
77,252
80,232
394,044
27,341
-
421,385
374,954
10,916
-
-
10,916
10,033
394,583
-
25,089
419,672
391,560
248,137
26,171
824
275,132
329,023
102,461
-
2,000
104,461
96,879
62,807
-
51,594
114,402
124,357
41,014
-
-
41,014
34,030
84,428
-
31,956
116,384
83,061
9,476
-
427
9,903
9,481
**1,471,424**
**53,512**
**260,674**
**1,785,609**
1,700,723
130,851
-
-
130,851
22,379
-
-
206,387
206,387
146,177
-
432,542
-
432,542
346,697
-
-
13,806
13,806
13,795
**1,602,275**
**486,054**
**274,479**
**2,362,808**
**2,229,771**| |---|---| 18 **Parochial Church Council of Hackney Church** **Notes to the Financial Statements For the year ended 31 December 2022** ## **4 Consolidated Entities** ## **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. 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
Music Event Expenses
Floristry Materials
Use of Hackney Church staff
Depreciation
**Total Operating Expenditures**
**Net Profit/(Loss) Retained in HCEL**
**Distributions to the Parish of Hackney**
**Accumulated (Loss) Brought Forward**
**Non-Charitable Trading Reserves**|**2022**
**2021**
**£**
**£**
82,155
32,825
356,055
322,895
-
407
-
417
**438,210**
**356,544**
4,399
4,392
12
7,000
1,876
8,347
2,585
333,764
280,113
441
73,541
56,676
5,491
602
**432,542**
**346,697**
**5,668**
**9,847**
-
-
(48,717)
(58,564)
**(43,049)**
**(48,717)**| |---|---| ## **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
Interest Income
**Total Income**
**Expenditures**
Administration Expenses
Repairs and Maintenance
Grants Distributed
Deprecation of Leasehold Buildings
**Total Expenditures**
**Net (Deficit)/Surplus Retained in SJHT**
**Accumulated Surplus Brought Forward**
**Charitable Trading Reserves**|**2022**
**2021**
**£**
**£**
-
-
32,181
36,200
31
-
**32,212**
**36,200**
1,060
2,016
3,746
2,779
25,200
41,400
9,000
9,000
**39,006**
**55,195**
**(6,794)**
**(18,995)**
442,166
461,161
**435,372**
**442,166**| |---|---| 19 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2022** ## **5 GOVERNANCE COSTS** The remuneration to the auditors for the audit of the 2022 accounts was £15,000. (2021: £13,330) **----- Start of picture text -----**
|||| |---|---|---| |6 STAFF COSTS|2022|2021| |£|£| |Wages and salaries (incl. PAYE)|777,247|708,156| |Employers Social security costs|68,778|46,331| |Employers Pension Costs|18,722|13,192| |864,747|767,679| **----- End of picture text -----**
During the year the PCC employed the full time equivalent ("FTE") of 25.27 people (2021: 23.86) and on the basis of actual number of people employed regardless of FTE the number of people employed in the year 31 (2021: 34.83). HCEL and SJHT did not have any direct employees in 2022 (2021:nil). One employee earned in excess of £60,000 in the year 2022 (2021: One) with nil of Employers Pension Cost (2021: nil). Total remuneration for key management personnel was £65,000 in the year. (2021: £65,000) The above salary amounts do not include any remuneration for redundancy in the year. (2021: £7,000) 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 off-Common 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|2022|2021| |£|£| |Received from Hackney Parochial Charity|36,000|36,000| |Received from St. John's Housing Trust as a grant|25,200|41,400| |Paid to St. John's Housing Trust for accommodation|2,600|36,200| |Received from Hackney Church Experiences Limted for services rendered and supplies|73,541|56,676| |Receivable from Saint Music Collective Limited|15,475|11,100| **----- End of picture text -----**
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 2022 is £145,214 (2021: £96,276). There were no other disclosable transactions in respect of PCC members, persons closely connected with them or other related parties. In 2022, no trustees received remuneration for employment at Hackney Church for work unrelated to trusteeship. The governing documents of Hackney Church permit a trustee to also be an employee provided that the salary is at fair market and the other trustees of the church are in approval. No other amounts in regards to employment or expenses were reimbursed that were not incurred directly on behalf, and for the benefit of, the Church. ## **8 TANGIBLE FIXED ASSETS** **----- Start of picture text -----**
|||||||||| |---|---|---|---|---|---|---|---|---| |PCC| |IT and|PCC|PCC|SJHT|HCEL| |Computer|Furniture|Production|PCC|PCC|Leasehold|Furniture| |Equipment|and Fixtures|Equipment|Vehicles|Subtotal|Property|and Fixtures|Total 2022| |£|£|£|£|£|£|£|£| |Cost at 1 January 2022|26,891|173,181|604,098|19,518|823,688|450,000|16,474|1,290,162| |Additions during year|10,201|27,710|19,731|57,642|57,642| |Disposals during year|(10,507)|-|(1,387)|-|(11,894)|-|-|(11,894)| |Cost at 31 December 2022|26,585|200,891|622,442|19,518|869,436|450,000|16,474|1,335,910| |Depreciation at 1 January 2022|20,877|96,267|325,995|4,383|447,522|14,250|602|462,374| |Charge for the year|5,628|50,601|183,621|2,522|242,372|9,000|5,491|256,863| |Disposals during year|(10,507)|-|(1,387)|-|(11,894)|-|-|(11,894)| |Depreciation at 31 December 2021|15,998|146,868|508,229|6,905|678,000|23,250|6,093|707,343| |Net Book Value at 1 January 2022|6,014|76,914|278,103|15,135|376,167|435,750|15,872|827,789| |Net Book Value at 31 December 2022|10,587|54,023|114,213|12,613|191,437|426,750|10,381|628,568| **----- End of picture text -----**
20 ## **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2022** ## **9 STATEMENT OF FUNDS** |**Unrestricted Funds**
Unrestricted Fund
**Total Unrestricted Funds**
**Designated Funds**
Experiences Fund
London Aged Christian Society
St. Luke's Quinquennial Fund
HCEL Trading Activities
**Total Designated Funds**
**Restricted Funds**
Lighthouse Project
Hackney Parochial Charity
St. John's Housing 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 Minster
West Ham School Supplies
Special Collections
SJHT Charity Activities
**Consolidated Eliminations in Restricted Funds**
St. John's Housing Fund
SJHT Charity Activities
**Total Restricted Funds**
**Total Funds**|**At**
**1st January 2022**
**Income**
**Gains from**
**Investments**
**Expenditures**
**At**
**31st December**
**2022**
**£**
**£**
**£**
**£**
**£**
(152,878)
1,045,792
(9,094)
(1,602,275)
(718,455)
**(152,878)**
**1,045,792**
**(9,094)**
**(1,602,275)**
**(718,455)**
80,268
(53,512)
26,756
120
120
30,737
30,737
(48,717)
438,210
(432,542)
(43,049)
**62,408**
**438,210**
**-**
**(486,054)**
**14,564**
74,460
120,442
(143,797)
51,105
6,000
6,000
12,000
(46,400)
(2,600)
(49,000)
823
(823)
-
500
29,526
(30,026)
-
-
2,000
(2,000)
-
169
169
8,366
70,472
(78,838)
-
(28,560)
91,878
(63,318)
-
3,039
61,192
(64,231)
-
3,151
50,516
(53,667)
-
3,450
3,450
-
31,898
(30,360)
1,538
442,166
32,212
(39,006)
435,372
467,164
496,136
-
(508,666)
454,634
46,400
2,600
49,000
(5,000)
(2,600)
25,200
17,600
41,400
(2,600)
-
27,800
66,600
**508,464**
**493,536**
**-**
**(480,866)**
**521,234**
**418,094 1,977,538 (9,094) (2,569,194) (182,656)**| |---|---| ## **Restricted Funds of the PCC** The Lighthouse Project (previously named Open Doors) is to support local people in need within the local community. The Hackney Parochial Charity Fund supports local people living below the poverty line and is used for helping people within the Church Ministries. The St. John's Housing Fund represents the support from and paid housing costs to St. John's Housing Trust. 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 event 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 Minster is a restricted grant toward expanding Youth ministry across the Stepney area. The Church Bell Tower fund represents monies received and spent specifically for bell tower improvements. The West Ham School Supplies fund is for donations within the West Ham area for children in need of school materials and equipment. The Special Collections fund are monies that are collected on behalf of another charity and are forwarded on accordingly. The Heritage Lottery Fund grant is for extensive refurbishment of the church building. 21 **Parochial Church Council of Hackney Church Notes to the Financial Statements For the year ended 31 December 2022** ## **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**
**11 DEBTORS AND PREPAYMENTS**
**Debtors**
Gift Aid tax recoverable
Grants Receivable
Amounts Due from Listed Places of Worship
Amounts Due from Heritage Lottery Fund
Amounts Due from Saint Music Collective
Amounts Due from SAINT churches
Accounts Receivable
Amounts Receivable from HCEL
Amounts Receivable from SJHT
Other Debtors
**Debtors for the year ended 31 December 2021**
**Prepayments and Deposits**
Rental Prepayments for Curate Housing
Other Prepayments for Church Activities
**Prepayments for the year ended 31 December 2021**|**Group 2022**
**£**
21,890
30,000
-
-
15,475
94,195
36,700
-
-
17,858
216,120
-
14,958
14,958|**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**Total**
**£**
**£**
**£**
**£**
-
-
426,750
426,750
154,591
37,137
10,090
201,818
54,784
30,737
-
85,521
436,547
(55,363)
134,558
515,744
(364,378)
2,053
(7,125)
(369,449)
(1,000,000)
-
(43,040)
(1,043,040)
**(718,455)**
**14,564**
**521,234**
**(182,656)**
**Unrestricted**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**Total**
**£**
**£**
**£**
**£**
154,591
26,756
10,090
191,437
54,784
30,737
-
85,521
530,557
120
22,110
552,787
(357,166)
-
(4,522)
(361,688)
(1,000,000)
-
(43,040)
(1,043,040)
**(617,234)**
**57,613**
**(15,362)**
**(574,983)**
`

**Group 2021**
**PCC 2022**
**PCC 2021**

**£**
**£**
**£**

11,739
21,890
11,739
69,101
30,000
69,101
2,887
2,887
20,811
20,811
11,100
15,475
11,100
34,316
94,195
34,316

54,916
121,169
21,283
-
7,106
69,315
-
26,468
1,562

22,555
17,790
21,587

227,425
334,094
263,701
1,688
1,688
5,934
14,958
6,434

7,622
14,958
8,122| |---|---|---| ## **12 INVESTMENTS** HCEL and SJHT had no investments throughout 2022 (2021: 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 Deposit Account
CCLA - Investment Account
CCLA - Investment Account|**Market Value**
**as of 1 Jan 2022**
**Unrealised**
**Gains on**
**Investments**
**Dividend and**
**Interest**
**Income**
**Transfer of**
**Income to**
**other accounts**
**Market Value**
**as of 31 Dec**
**2022**
**£**
**£**
**£**
**£**
**£**
3,067
-
40
-
3,107
62,520
(5,697)
56,823
28,988
(3,397)
-
-
25,591
94,575
(9,094)
40
0
85,521
**Unrestricted**
**Designated**
**Restricted**
**Total 2022**
**Total 2021**
**£**
**£**
**£**
**£**
**£**
3,107
-
-
3,107
3,067
26,086
30,737
-
56,823
62,520
25,591
-
-
25,591
28,988
54,784
30,737
-
85,521
94,575| |---|---| The historic cost of investments is £53,052. 22 ## **Parochial Church Council of Hackney Church Notes to the Financial Statements** **For the year ended 31 December 2022** ## **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
Loan Payable (Note 14)
Other Accruals|**2022**
**2021**
**£**
**£**
84,766
74,221
-
-
5,325
55
212,141
17,272
16,464
1,058
16,329
15,000
13,330
11,943
6,425
-
-
234,085
1,875
**369,449**
**340,840**
**Group**|**2022**
**2021**
**£**
**£**
72,422
71,686
-
5,325
55
153,090
17,272
16,464
14,889
25,825
15,000
13,330
6,043
6,425
-
-
230,737
1,875
**361,688**
**288,750**
**PCC**| |---|---|---| ## **13(b) LIABILITIES: AMOUNTS FALLING DUE AFTER ONE YEAR** |Long Term Loan
Loan - Stewardship|**2022**
**2021**
**£**
**£**
1,000,000
1,000,000
43,040
1,043,040
1,000,000
**Group**|**2022**
**2021**
**£**
**£**
1,000,000
1,000,000
43,040
1,043,040
1,000,000
**PCC**| |---|---|---| ## **14 POST BALANCE SHEET EVENT** A long term drawdown facility was agreed with an unrelated party in late 2019. The amount of £1,000,000 was drawn in December 2019. Following negotiation, the first tranche of the loan has been deferred and, as such, £250,000 will come due in December 2025 23