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2020-12-31-accounts

PAGE E

REVIEW OF CHURCH ACTIVITIES IN 2020 (with updates to 15[th] March, 2021)

- ACTIVITIES HAVE BEEN REDUCED THIS YEAR DUE TO COVID 19

The Coronavirus pandemic has quite understandably played havoc with the lack of activities which have taken place since 23[rd] March 2020 when the first lockdown took place. COVID 19 also affected the usual time scale for preparing our annual report and the presentations to both the PCC for formal acceptance and then to the APCM.

The Annual Report for 2019 included the whole of that calendar year and activities up to 25[th] August, 2020 with the report being accepted by the PCC on 14[th] September 2020 and presented to the APCM on 11[th] October, 2020. Therefore, what happened up to 25[th] August, 2020 has already been mentioned in the 2019 Annual Report so will only be touched on as background information where there have been developments since 25[th] August 2020 right up to 15[th] March, 2021.

CHURCH SCHOOLS:

As part of our on-going commitment to our Church Schools, we continued to purchase sufficient bibles to enable each child in year three, at both Howick and Cop Lane Schools , to have their own copy to use for the remaining four years at their primary school and then to take with them when they move onto secondary education. This continues to be very much appreciated by pupils, their parents and staff alike.

Presentation of bibles to each school took place during the Autumn term but none of the Foundation Governors were able to be physically present in school so the respective headteachers made the presentations of behalf of St Mary’s Church.

Due to COVID and the various restrictions and lockdowns, children’s education has been adversely affected. Even when schools were fully open, some year groups/classes had been subject to COVID with the children having to isolate at home for a 10day period but continued to receive tuition remotely. During the later periods of time when schools were officially closed to pupils during term time, up to 40% of children were actually in school because they were classed either as ‘vulnerable’ or their parents were classed as ‘key workers’. This caused additional workloads for teachers having to do both remote teaching and actual teaching to those in school.

Too much praise cannot be given to headteachers and staff at both schools for rising to these unprecedented challenges and going over and beyond to ensure that children continued to be taught. Foundation governors at both schools have ensured that their actions have been recorded at full Governing Board meetings which have all been held on Zoom. Schools are due to reopen to all pupils from 8[th] March.

PAGE F VOLUNTEERS:

The Church Regulations require that any substantial voluntary help” must be recorded in their Annual Report. There is a small group of active parishioners who give of their services in financial management, general maintenance and administration. The Parish is very fortunate to have such people who are prepared to continue to give so much of their time and talents for the benefit of the Parish. Our Vicar continues to say this publicly on all occasions. We are required by the Regulations to state if any member of the PCC has received any payment for their services during the course of the year. We report that David and Rachel Tuke are members of the bell-ringing team and their fees are in accordance with those approved by the PCC. Our organist Rhoda Martin is also paid in accordance with the approved rates.

We do not have an appointed verger but when a wedding or funeral takes place, the Vicar asks if someone could act as a verger. David Thornton and Jill Howe (Churchwardens) perform these duties but only infrequently and are paid the statutory fee in each case. This is not really defined as “substantial voluntary help” because only a small fee is paid but with the other substantial voluntary work each undertakes, it was felt this should be recorded in this report to demonstrate transparency.

ECUMENICAL MATTERS:

All eight churches in Penwortham form the Ecumenical Group – two are Church of England (St. Leonard’s and ourselves), two are Methodist, two are Roman Catholic, one is the United Reform Church and the eighth is a free church which meets in Whitefield Road Primary School. Each church sends to South Ribble Borough Council’s (SRBC’s) Community Liaison Officer, the various events and services which happen during Advent and over Christmas who then produce and distribute a leaflet highlighting all these events in Penwortham. This year due to COVID, most of the events/services did not take place.

The procession of witness on Good Friday in 2020 was cancelled due to COVID-19 and the 2021 has also been cancelled. Similarly, both Penwortham Live 20 and Penwortham Gala in 2020 were both cancelled.

Our Church hosted the Churches Together in Penwortham World Day of Prayer in March, 2020 just before the COVID-19 lockdown. Lancashire Sings Christmas, organized by BBC Radio Lancashire, was broadcast only without anyone gathering at various venues up and down the County.

PARISH FINANCES :

The Statement of Financial Practice (SOFP) 2015 and the subsequent changes to the Church Accounting Practices dictate how our accounts have to be prepared.

David Tuke is our treasurer, who has financial skills and he has prepared the accounts using specifically designed computer software for church accounting procedures and we have been able to show a true comparison with activity in 2019 alongside 2020.

The accounts, balance sheet and notes to the accounts forming part of the annual report are shown on pages 1 -10 including the Independent Examiners certificate giving us a clear bill of health (see page 11). These will be explained by our treasurer at our Annual Parochial Church Meeting (APCM) scheduled to take place on Zoom on Sunday 18[th ] April 2021 commencing at 2pm.

PAGE G

The Church Regulations state that both the Annual Report and Accounts have to be approved by the PCC as they are the Trustees and are later presented at the APCM for those present to receive and note. Details are then forwarded electronically to both the Church of England Statistics Branch and the Diocese before the deadline date.

CHILDREN / VULNERABLE ADULT PROTECTION & SAFE FROM HARM POLICY:

Gareth Allen, our Parish Safeguarding Officer updated our Policies and Appendices which were presented and re-affirmed by the PCC in July 2020. These documents continue to be displayed in Church and on our Church website. The forms in the appendices continue to be valid and there was also no change needed to the Vulnerable Adult Policy.

The Disclosure & Barring Service (DBS) has become much more rigorous as the Churches Child Protection Advisory Service (CCPAS), now called “ Thirtyoneeight”, have had to comply with the latest changes to the Data Protection Policy. This is now giving greater security to our applicants moving forward as the information provided in highly sensitive.

The Church of England issued new instructions on what information about safeguarding had to be clearly displayed in church as well as on our church website. We can report that we are totally compliant.

We continue to be committed to providing a safe environment for all children and vulnerable adults.

THE CHURCH BUILDING:

QUINQUENNIAL (every 5 years) INSPECTION:

Every five years a full report (quinquennial report) on the condition and fabric of our Grade II* listed church has to be carried out by a diocesan approved qualified architect who for us is Stephen Fish. The latest Inspection took place in September 2017 and the report was sent to the PCC in January 2018. There were two urgent items requiring attention.

One was to address issues with the parapets which had resulted in some dampness coming through onto the walls in the Nave and the second was to address crumbling masonry around the West window. Specialists have now been to church and given quotes for both jobs. The Chancellor of the Diocese (the planning authority) directed that the observations of the Society for the Preservation of Ancient Buildings (SPAB) had to be sought before anything further could be progressed. This delayed any work being started. In September 2020 the Chancellor gave authorization for the work to go ahead with the approved contractor giving a start date of February, 2021 but this has subsequently been put back due to COVID.

The other work identified to be completed within the next two years will be carried out with total costings for all the work identified estimated at £76,000. Most of this work will have to be done by professionals. Two important pieces of work which have been addressed by one such professional, was the replacement of tiles on the nave roof which now makes us watertight again and the removal of the flag pole as its’ wooden housing in the roof of the tower was found to be totally rotten. Many of the other minor tasks have now been done and the remainder will be completed by parishioners.

PAGE H

COVID – THE EFFECTS ON CHURCH SERVICES:

The government imposed a national lockdown on 23[rd] March, 2020 which included all churches. During this period, risk assessments were done and the church put in place all the requirements to be COVID compliant. Our monthly Parish Magazine, from the April edition onwards, was compiled as usual but not printed as volunteer distributors to the 300 plus households and other premises in Penwortham were not allowed under COVID restrictions BUT the Magazine continued to be put on our church website. This was the first occasion in over 150 years that the Church Magazine has not been printed and circulated by hand.

The following highlight key dates and changes affecting attendance and worship at church since the 23[rd] March 2020 up to the present time of compilation on 15[th] March, 2020. Information was circulated in the form of a letter from the Vicar which was emailed to some 102 households as well as being put on our church website, our church Facebook page and other local social media sites. There are in the region of 20 parishioners who are on our Church Electoral Roll who do not have access either to email of the web, so letters from the Vicar have either been posted or hand delivered so everyone has been kept up to date.

PAGE I

From a very ‘Heath-Robinson’ streaming on Zoom through a router that was not powerful enough when we started back in November, significant enhancements have now been made so for the last 8 weeks, both the sound and vision is now satisfactory but more work is now in progress to improve the situation even further.

Since the 23[rd] March last year due to the COVID restrictions, singing in church has not been allowed and this situation is likely to continue until all lockdown restrictions are lifted which is scheduled to take place on 21[st] June at the earliest. Our 10.15am Sunday communion service has been the poorer for no singing as this is such an important part of our worship. There was a nucleus of about eight or nine members of the congregation who enhanced the Sunday service with their musical contribution particularly during and after the administration of the sacraments. Without the support of our organist Rhoda Martin this would not have happened and it is hoped that singing resumes as soon as possible.

THE CHURCH GROUNDS SURROUNDING THE CHURCH ITSELF – (covering the church yard and Castle Hill [the site of an ancient Monument].)

THE CHURCHYARD (covering all three graveyards and Crow Wood)

The maintenance of the churchyard is the responsibility of the South Ribble Borough Council (SRBC) as we are a ‘Closed Churchyard’ and subject of ‘an order of the Privy Council’ back in the year 2000 which has been documented in most of the previous annual reports over the last 19 years. Therefore, only what has happened in 2020 and 2021 will now be included.

Despite repeated requests in writing to SRBC to fulfil their legal obligations over the years, very little in the way of maintenance had been done. A further written file in a large A4 ring binder was handed to the Secretary of the Diocesan Advisory Committee (DAC) in 2019 with a plea that the Diocese put pressure on SRBC to fulfil their legal obligations which included applying for a faculty (authority) to the Diocese to undertake the work. A strongly worded letter from the Diocesan Registrar (a barrister) was subsequently sent to SRBC which initially they did not even acknowledge.

In the interim, the adviser to the Diocese on monuments attended the church at our request and he produced a damming written report stating that it was “ the worse graveyard condition he had ever seen in his 30years of operation”. He detailed how many headstones were dangerous in each graveyard stating that if an unsafe headstone in the northern graveyard fell on anyone, it could prove fatal and those in the western graveyard could cause serious injury. The report also provided an estimate on how much it would cost to make all the headstones safe.

Some three months later In April, 2020, two representatives from SRBC visited church by arrangement with the Vicar and he was joined by all three churchwardens. SRBC were given a written copy of the Diocesan monuments adviser’s report. After visiting the whole churchyard, they stated they would report back to their director but verbally accepted that it was the Council’s responsibility to make good.

PAGE J

SRBC commissioned an independent firm of monumental masons to visit our churchyard and their report confirmed the findings of the Diocesan adviser. Shortly after this, mental fencing, called Harres fencing, was installed by SRBC to prevent any access to the northern graveyard.

Subsequently, some cutting of grass in the churchyard took place by SRBC and following an ongoing dialogue with the Vicar and senior SRBC Council Officers, an on-sight meeting took place in September 2020 with the Vicar, the Leader of SRBC Cllr. Paul Foster and County/Borough/Ward Councillor David Howarth, together with a reporter/photographer from the Lancashire Post present.

A very positive article appeared in the Lancashire Post giving the background information together with a quote from the leader of SRBC publicly confirming that it was entirely their responsibility to bring the churchyard up to standard enabling anyone visiting to do so in safely. He stressed that this would be addressed by SRBC as a matter of urgency.

True to his word, work on the northern graveyard started almost immediately with headstones being reerected and the whole area being cleared of overgrown vegetation. The dangerous footpaths around the perimeter of the graveyard were then laid with new compacted hardcore which was then extended along the western side of the 1956 extension and along part of the memorial wall that was no cobbled all the way back to the vehicular access into the churchyard from Church Ave close to the lychgate.

The contractors employed by SRBC are now due to start on the western graveyard to carry out similar work to headstones after which all the footpaths will similarly be subject of new compacted hardcore. Once this has been completed, they will turn to making safe the graves in the southern graveyard from the lychgate covering the area up to both the western and southern entrances to the church.

CHURCH OWNED LAND OUTSIDE THE CHURCHYARD:

The Parish owns land on both sides of Church Avenue from the Lychgate to the corner junction with Squires Road and then on the left-hand side when walking down the bridleway toward Liverpool Road. The church owned land then skirts round behind the back of the Penwortham War Memorial down Penwortham Hill as far as the former slip road up onto the Penwortham By Pass. On going through the wicket gate all the land on the left-hand side banking passing the east end of the church and down to Holme Road belongs to the church. The whole of this area is known as Church Wood.

On 21[st] January this year after some days of torrential rain there was a landslide of the embankment close to the Old Cross on Church Avenue opposite the ginnel between Church Avenue and Hollinhurst Avenue. Five large trees were either felled or uprooted and in danger or falling. The public footpath from Church Avenue down the embankment to the footpath at the bottom in the dell was impassable. The actual road was not affected. South Ribble Borough Council (SRBC) turned out and sealed off all access points to Church Wood. As the embankment is owned by the church, the Diocesan Civil Engineer attended the scene and made an assessment. The responsibility of maintaining the public footpath is Lancashire County Council and the other parts of Church wood belong to South Ribble Borough Council.

The Civil Engineer arranged for two quotes to be obtained to attend and assess the situation and what they felt needs to be done to stabilize the banking. We will update you in next year’s annual report.

PAGE K

STATEMENT OF NEEDS:

The PCC approved a ‘statement of needs’ which in effect documents various projects some of which require no outside approval, some which require local authority approval, others which only require diocesan approval and the final category which requires both local authority and diocesan approval. Each project was prioritized and some of them either have been completed or are underway.

However, the costliest project is the building of a new annex to replace the 1956 extension. This would enhance the facilities up at church using the monies we received from the surrendering of the lease on the former church hall land on Cop Lane. The PCC had considerable discussions in late 2019 and into 2020 on how best we could achieve this. We had drawn up a list of requirements we would wish to incorporate and professional advice was sort through our architect. The initial work was detailed in last year’s annual report.

The PCC had agreed with the professionals that the most cost-effective solution would be to demolish the whole of the 1956 extension and to build a state of the art two storey annex which would be larger than the footprint of the existing building. The shape, however, was defined by the location of graves which we would not disturb. Our Architect Stephen Fish, who is also on the Diocesan Advisory Committee, drew up plans which, together with an artist’s impression, were displayed at the back of church and on the whole were very warmly received. The comments and observations of parishioners were incorporated into a revised ‘statement of needs’.

We have informally consulted with the Planning Department of SRBC who have not raised any objections in principle but of course when finally costed, the plans will have to be formally submitted and approved by both the local authority and the Diocese before any build can commence. The progress has been delayed due to COVID 19.

THE FUTURE:

The continuing effects of the Coronavirus pandemic will affect us for many months to come. The Government has published a road map with dates when they hope restriction can be lifted in stages. If everything goes according to plan, all COVID restrictions will be lifted on 21[st] June, 2021.

Parishioners will be kept fully up to date with a letter going out under the Vicar’s signature at each change.

The Revd Chris Nelson – Vicar & PCC Chair

David Thornton - PCC Secretary

DJT/PCCSec/22.03.21

PREFACE ACCOUNTS PAGE

INDEX TO THE ACCOUNTS - 2020

STATUTORY REQUIREMENTS:

NOTES TO THE ACCOUNTS:

Pages 3 & 4 Note 1 - Accounting Policies
Page 5 Note 2 - Incoming Resources – in greater detail
Pages 6 & 7 Note 3 - Resources Expended – in greater detail
Page 7 Note 4 - Staff Costs
Note 5 - Fixed Assets
Note 6 - Analysis of Net Assets by Fund
Page 8 Note 7 - Debtors
Note 8 - Liabilities – amounts falling due within one year
Note 9 - Funds - Unrestricted / Designated / Restricted
Page 9 Note 9 - Funds - Endowment / Transfer between Funds
Note 10 - Certain Individual Account Performances
Note 11 - Quinquennial Inspection

INDEPENDENT EXAMINER’S AUDIT ACCOUNT CERTIFICATE:

Page 10 Independent Examiner’s Report & Certificate

EXPLANATION OF THE VARIOUS FUNDS USED IN OUR ACCOUNTS:

Page 1

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31[st] December 2020

Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
Total
2019
Note £ £ £ £
Incoming Resources
From Donors 2(a) 48,112 0 0 - 48,112 57,863
Other Voluntary 2(b) 3,661 0 50 - 3,711 5,009
Activities:-
to further the Councils Objects 2(c) 3,221 0 0 - 3,221 12,514
togenerate Funds 2(d) 881 0 45 - 926 5,062
From Investments 2(e) 21 3,330 0 - 3,351 4,753
Other 2(f) 6,028 0 0 - 6,028 786,701
Total Incoming Resources 61,925 3,330 95 - 65,349 871,902
Resources Expended
Grants 3(a) 774 0 0 - 774 8,396
Activities directly relating to the
work of the church
3(b) 47,923 40,000 0 - 87,923 101,257
Church Management and Admin 3(c) 475 0 0 - 475 2,117
Cost of GeneratingFunds 3(d) 0 0 0 - 0 94
Support Costs 3(e) 79 0 0 - 79 350
Other Resources Expended 3(f) 326 0 0 - 326 327
Total Resources Expended 49,576 40,000 0 - 89,576 112,541
Net Incoming (Outgoing)
Resources before Transfers
12,349 -36,670 95 - -24,226 759,361
Transfers Between Funds 9(a)
Transfers Between Funds in 0 0 0 - 0 0
Transfers Between Funds out 0 0 - 0 0
Net Incoming (Outgoing)
Resources
12,349 -36,670 95 - -24,226 759,361
Gains/(losses) on Investment
Assets:-
Realised
Unrealised
Net Movement in Funds 12,349 -36,670 95 - -24,226 65,085
Fund Balances B/F at 1 Jan 163,042 791,569 4,971 215 959,797 135,352
Fund Balances C/F at 31 Dec 175,391 754,899 5,066 215 935,571 894,713

Page2

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

BALANCE SHEET

YEAR ENDED 31[st] December 2020

2020 2019
NOTE £ £
FIXED ASSETS
Investment Assets 5(c) 215 215
House 5(b) 155,000 155,000
TOTAL FIXED ASSETS 155,215 155,215
CURRENT ASSETS
Stock 0 0
Debtors 7 0 524
Short Term deposits
Current Account 12,710 7,604
Deposit Account 18,916 11,101
Development Account 17 16
New BuildingAccount 748,766 785,436
Cash in Hand 100 100
Accounts Receivable 2,210 2,147
TOTAL CURRENT ASSETS 782,719 806,927
Liabilities(falling due within 1year) 8 2,364 2,345
NET CURRENT ASSETS 780,355 804,582
NET ASSETS 935,570 959,797
FUNDS 6
UNRESTRICTED 175,390 163,042
DESIGNATED 754,899 791,569
RESTRICTED 5,066 4,971
ENDOWMENT 215 215
TOTAL FUNDS 935,570 959,797

PAGE 3

NOTES TO THE FINANCIAL STAEMENTS

1. PENWORTHAM ST MARY’S PARISH ACCOUNTING POLICIES:

The financial statements have been prepared in accordance with the Church Accounting Regulations 1997 as amended by the Church Accounting (Amendment) Regulations 2001 together with applicable accounting Standards and the Charities Statement of Recommended Practice (SORP).

The finical statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value.

FUNDS:

Explanations of the various funds are shown on earlier pages of the Annual Reports and Statement of Accounts. The relevant pagers are marked P and Q. The amounts and details of each fund are show on Pages 1 and 2 which are the statutory accounting requirements. The funds are also explained in further detail in Note6 on page7 and Note 9 on pages 8 and 9.

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

INCOMING RESOURCES:

Voluntary income and capital sources

Income from Investments

Gains and losses on Investments

Page 4

NOTES TO THE FINANCIAL STATEMENTS (cont’d)

RESOURCES USED:

These are summarised on page 1 and explained in detail, where necessary, in note 3 on page 6.

Grants

Activities directly relating to the work of the Church

FIXED ASSETS:

These are summarised on page 2 and explained in detail, where necessary, in Note 5a and Note 5b on page 7.

Consecrated property and moveable church furnishings

Other fixtures, fittings and office equipment

Investments

CURRENT ASSETS:

These are summarised on page 2 and explained in detail, where necessary in Note 7 on page 8.

Page 5

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31[st] December 2020

YEAR ENDED 31st December 2020
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
Total
2019
£ £ £ £ £ £
2 INCOMING RESOURCES
2(a) Incoming resources from donors
Plannedgiving:-
StewardshipEnvelopes 35,286 - - - 35,286 39,153
Income Tax recoverable 9,590 - - - 9,590 10,403
Collections(Open Plate)all services 3,236 - - - 3,236 8,307
SundryDonations 0 - 0 - 0 0
48,112 0 0 0 48,112 57,863
2(b) Other voluntary incoming resources
Donations,appeals etc 661 - 50 - 711 5,009
Legacies 3,000 - - - 3,000 0
3,661 0 50 0 3,711 5,009
2(c) Income from operating activities to
further the Council's objects
Magazines & Bookstall,etc sales 822 - - - 822 1,144
Fees - Weddings & Funerals 2,399 - - - 2,399 11,370
3,221 0 0 0 3,221 12,514
2(d) Income from operating activities to
generate funds
Magazine Advertising 30 - - - 30 924
Fetes, Bazaars & other fund raising
events
18 - 45 - 63 541
Bookstall sales - sundryitems 233 - - - 233 209
Miscellaneous - - - - 0 0
Vat Refunds - - - - 0 0
Church Letting 600 - - - 600 3,388
881 0 45 0 926 5,062
2(e) Income from investments
Dividends 16 - - - 16 9
Bank Interest 5 3,330 - - 3,335 4,745
21 3,330 0 0 3,351 4,753
2(f) Other ordinary incoming resources
Miscellaneous 0 - - - 0 780,942
Insurance Claims - - - 0 0
House Income 6,028 - - - 6,028 5,760
6,028 0 0 0 6,028 786,701
TOTAL
INCOMING
RESOURCES
61,925 3,330 95 0 65,349 871,902

Page 6

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31[st] December 2020

Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
Total
2019
£ £ £ £ £ £
3 RESOURCES EXPENDED
3(a) Grants
Missionary & charitable
giving
Church overseas:- - - - - 0 0
Missionarysocieties - - - - 0 100
Relief & development
agencies
0 - - - 0 0
Home missions & other
Church Societies
73 - - - 73 5,062
Secular Charities 701 - - - 701 3,234
774 0 0 0 774 8,396
3(b) Activities directly relating to
the work of the church
Ministry:-
Parish Share 27,008 40,000 - - 67,008 66,229
Assigned Fees/DBF 0 - - - 0 0
Clergyexpenses 1,511 - - - 1,511 3,593
Locum 233 - - - 233 0
Vicarage repairs 0 - - - 0 0
Vicarage - other costs 3,548 - - - 3,548 3,574
Church runningexpenses 9,902 - - - 9,902 8,355
Church Maintenance 868 - - - 868 3,473
Church Equipment 287 - - - 287 1,141
Upkeepof Services 870 - - - 870 3,198
Upkeepof churchyard 65 - - - 65 1,244
Parish Magazine & bookstall 392 - - - 392 349
Refurbishment of Church
Buildings
1,879 - 1,879 6,386
Salaries, wages, fees -
organists
1,360 - - - 1,360 3,072
Salaries, wages, fees - bell
ringers & choir
0 - - - 0 618
Miscellaneous - - - - 0 25
47,923 40,000 0 0 87,923 101,257
3(c) Church management &
admin
Printing,stationery&postage 475 - - - 475 2,117
Miscellaneous 0 - - - 0 0
Parish Office:-
Equipment & fittings - - - - 0 0
475 0 0 0 475 2,117
3(d) Costs ofgenerating funds
Fetes, Bazaars & other fund
raisingevents
0 - - - 0 94
Stewardship givingenvelopes 0 - - - 0 0
Miscellaneous 0 - - - 0 0
0 0 0 0 0 94
3(e) Support Costs
Junior Church 0 - - - 0 250
Youth - - - - 0 0
Child Protection - - - - 0 0
Miscellaneous - - - - 0 28
Bank Charges 79 - - - 79 72
79 0 0 0 79 350
3(f) Other Resources Expended
House Expenses 326 - - - 326 327
326 0 0 0 326 327
TOTAL
RESOURCES
EXPENDED
49,576 40,000 0 0 89,576 112,541

4 Staff Costs

Salaries, wages and fees

During the year the PCC employed: 2020 2019
£ £
a) For the whole year – organists 1,360 3,073

No payments were made for out of the pocket expenses to any PCC member, persons closely connected with them or any other related parties. During the year PCC member(s) David Thornton and Jill Howe received fees for acting as a verger at services.

5 FIXED ASSETS FOR USE BY THE PCC

Tangible fixed assets:

a) 177 Cop Lane which belongs to the PCC is included at a fixed asset The value in Dec 2011 was £155,000

b) Central Board of Finance Shares £215

6 ANALYSYS OF NET ASSETS BY FUND

Investment Fixed Assets
Current Assets
Current Liabilities
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
£
£
£
£
£
155,000
-
-
215
155,215
22,754
754,899
5,066
-
782,719
-2,364
-
-
-
-2,364
175,390
754,899
5,066
215
935,570

Page 8

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31[st] December 2020

7
Debtors
Income Tax Recoverable on Gift Aid
Debtors for Goods & Services
Prepayment and accrued income
Other Debtors
8
Liabilities – amounts falling due within one year
Deferred income
Creditors for Utility and other costs
Accruals of utility and other costs
2019
2018
£
£
0
0
524
524
8,278
8,278
-
-
8,801
8,801

2020
2019
£
£
1,500
1,500
-
-
864
845
2,364
2,345

9 Fund Details

UNRESTRICTED FUNDS

Unrestricted funds totalling £163,042 are the unspent balance available for future use.

DESIGNATED FUNDS

Designated funds totalling£754899.21comprise:-
i)
Unrestricted Legacies notified/received for proposed future spending on
the general refurbishment of the church buildings including the hall
i)
Provision out of unrestricted funds towards proposed future spending on
the replacement Parish Office equipment
i)
Funds for upkeep of Church buildings and new extension
£
4,729
1,404
748,766
754,899
RESTRICTED FUNDS
Restricted funds totalling£5065.98comprise:-
Singleton Memorial Estate and other funds
Pastoral Care Team
Sundry amounts in respect of Easter Lilies, flowers, Memorial Garden, Bell
ropes, Disabled facilities, Church linen, Choir and Fox Street community
Younity
Charitable donation
Church yard maintenance
£
1,371
544
2,694
157
225
75
5,066

Page 9

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31[st] December 2020

ENDOWMENT FUND

The Endowment Fund of £215 is a permanent endowment of 132 Central Board of Finance shares and requires the income to be spent on the Chancel.

TRANSFER BETWEEN FUNDS

Designated to General Funds £0

Restricted to General Funds £0

10 CERTAIN INDIVIDUAL ACCOUNT PERFORMANCES

£ Magazine and Bookstall income exceeded costs by 693

11 QUINQUENNIAL INSPECTION

The last quinquennial report on the Church was in 2017.

Pqfri to This report on the accounts of the PCC for Ihe 5'¢ar ended 31. Dec¢mb¢r: 2020: 15.hich are out on pages l and 2: is in respect of an examination carried out under R¢8ulation 3(3) of the Chur¢h A¢countin8 Regulations, 1997 10 2001 ('the regulations,) and Secti¢)n 43 of the Charities Act 1993 ('the A¢t'). As members of the PCC. i'ou ar¢ responsible for the preparation of the accounts: l'ou consider that the audit requiremeni of Regulation 3(3) and Section 43(2) of the Act do not appli.. It is mj, responsibility. lo issue this r¢port on those accounts in accordan¢¢ with the temis of Regulation 25. M!.. examination il'as carried out in accordance the G¢n¢ral Directions gii'en bi. the CharitS' Conllnissioners under Section 43(7)(b) of the Act and to be found in the Church guidan¢¢, 2001 editio issued h. the Finance Dii'tsion of the Archbishops, Council. Thal examination includes a rei'iew. of th¢ accounting records k¢pi th. the PCC and a comparison of the accounts iiith those records. It also includes ¢onsidering ani. unusual items or disclosures in the ac¢ounls and seek-ing explanations from s-ou as tnL8tees concerning an!. such matters. The procedures ￿dertak"en do not proi'ide a]1 the ¢i'idence that iiould be required in an auth'i, and consequently I do not express an audit opinion on th¢ kiell's 8ii.en by the accounts. In connection ii'ith mi. evamination, no matter has com¢ lo my attents'on.. which giTres m¢ rwonable cause lo belieTre that in An￿ material respeth the requir¢menls to keep accounting records in a¢cordance ￿'1th S¢¢tion 41 of the Act.. and to prepare accounts ii+jich accord the ￿cOunting records and Compli. ii'ith the requirements of the Act, and Regulations have not been met: or to H'hich, in mi. opinioTL atteniion should be drawn in order to ¢nable a proper understanding of th¢ a¢counls to be reached. signed dated Mrs Susan WaEsh 79. Greencrofi, Penii'ortha Preston PRI 9LB

PAGE 11

PENWORTHAM ST MARY’S PAROCHIAL CHURCH COUNCIL

AN EXPLANATION OF THE VARIOUS FUNDS USED IN OUR ACCOUNTS

The various funds which are used in our accounts are described below to assist in the understanding of the accounts and the management of our church finances.

UNRESTRICTED FUNDS:

All PCCs have a fund, normally called a General Fund, which they use to pay all the everyday expenses. This fund is “unrestricted” because the money has been given to the Church on the general understanding that it will be used at the discretion of the PCC for furthering the mission and ministry of the Church. Unless specified otherwise, all the money received by the Church is first put into the General Fund. Income generated from assets held in an unrestricted fund will be unrestricted income.

DESIGNATED FUNDS:

The PCC may decide to put some of the unrestricted fund money aside in other funds for use in the future (for example, for future building repairs). This money is “designated” for these particular projects for administrative purposes only. Designated funds are still unrestricted and can be moved to other general funds (re-designated or un-designated) if the PCC so decides.

RESTRICTED FUNDS:

PCCs also receive money which has been given for a particular purpose, for example

• a collection in church may be announced as being for a particular purpose (such as the purchase of new hymn books, the repair to the chancel roof or for Christian Aid)

All these sums have been restricted by the donor for a particular purpose and they cannot, and must not, be used by the PCC for any other purpose unless determined by the courts or the Charity Commission. Income generated from assets held in a restricted fund will generally be subject to the same restrictions as the fund.

An oral or written appeal or a collection for a special purpose, such as the fabric fund, will restrict the income for that purpose. There may be times when more money is raised than is needed for the particular purpose of the appeal. This excess money is restricted to the purpose and should be retained for use on the same purpose.

PAGE 12

RESTRICTED FUNDS (cont’d):

This situation can be eased if the PCC acquires the power beforehand to use any surpluses for other purposes. The easiest way to avoid any problems is by announcing at the time of the appeal that any unused balance will be put to the general purposes of the PCC. The restriction then applies until the purpose of the appeal has been satisfied. (A general notice to this effect can be placed prominently in the church to catch all occasions). If someone wants to make a significant donation for a particular purpose, the donor could be asked to specify that they give the PCC permission to use it for alternative purposes under certain conditions.

There could be a potential problem if insufficient funds are raised for a particular purpose and the shortfall cannot be made good out of general funds. The PCC should always make clear in appeals what it would do if this situation arose – for example, to return all the donations or to use them for another related purpose.

ENDOWMENT FUNDS:

Another form of restricted fund is known as an endowment fund. This is either money given to the church with the specific instruction that only the income gained from the money can be spent or an asset (such as a house) donated to be retained for continuing use by the Church. The original money or assets (the “capital”) cannot normally be spent and must remain in the form of equivalent assets (such as a house) or investments, but not necessarily the same asset that was given. It may be in a fund named after the donor.

There are two types of endowment fund, which must be distinguished in the accounts by note:

1. Permanent:

A particular type of restricted fund which, in accordance with the explicit requirements of the funding donor, must be held permanently (the PCC have no power to convert it into income and spend it like other income):

2. Expendable:

An endowment fund which may, in certain circumstances, be spent. (The PCC have this power, if given by the donor. This fund is not income when it is first received because there is no duty on the part of the PCC to apply it for its purposes. However, if the power to convert is used, then at that time the amount converted becomes income).

LOCATION OF FUND DETAILS IN THE ACCOUNTS:

At the top of pages 1, 5, and 6 of the accounts, allocated monies are shown against each of the above funds, namely unrestricted, designated restricted and endowment. In addition, note 9 to the financial statements, which is on pages 8 and 9 of the accounts, gives further details about each of the above funds.

PREFACE ACCOUNTS PAGE

INDEX TO THE ACCOUNTS - 2020

STATUTORY REQUIREMENTS:

NOTES TO THE ACCOUNTS:

Pages 3 & 4 Note 1 - Accounting Policies
Page 5 Note 2 - Incoming Resources – in greater detail
Pages 6 & 7 Note 3 - Resources Expended – in greater detail
Page 7 Note 4 - Staff Costs
Note 5 - Fixed Assets
Note 6 - Analysis of Net Assets by Fund
Page 8 Note 7 - Debtors
Note 8 - Liabilities – amounts falling due within one year
Note 9 - Funds - Unrestricted / Designated / Restricted
Page 9 Note 9 - Funds - Endowment / Transfer between Funds
Note 10 - Certain Individual Account Performances
Note 11 - Quinquennial Inspection

INDEPENDENT EXAMINER’S AUDIT ACCOUNT CERTIFICATE:

Page 10 Independent Examiner’s Report & Certificate

EXPLANATION OF THE VARIOUS FUNDS USED IN OUR ACCOUNTS:

Page 1

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31[st] December 2020

Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
Total
2019
Note £ £ £ £
Incoming Resources
From Donors 2(a) 48,112 0 0 - 48,112 57,863
Other Voluntary 2(b) 3,661 0 50 - 3,711 5,009
Activities:-
to further the Councils Objects 2(c) 3,221 0 0 - 3,221 12,514
togenerate Funds 2(d) 881 0 45 - 926 5,062
From Investments 2(e) 21 3,330 0 - 3,351 4,753
Other 2(f) 6,028 0 0 - 6,028 786,701
Total Incoming Resources 61,925 3,330 95 - 65,349 871,902
Resources Expended
Grants 3(a) 774 0 0 - 774 8,396
Activities directly relating to the
work of the church
3(b) 47,923 40,000 0 - 87,923 101,257
Church Management and Admin 3(c) 475 0 0 - 475 2,117
Cost of GeneratingFunds 3(d) 0 0 0 - 0 94
Support Costs 3(e) 79 0 0 - 79 350
Other Resources Expended 3(f) 326 0 0 - 326 327
Total Resources Expended 49,576 40,000 0 - 89,576 112,541
Net Incoming (Outgoing)
Resources before Transfers
12,349 -36,670 95 - -24,226 759,361
Transfers Between Funds 9(a)
Transfers Between Funds in 0 0 0 - 0 0
Transfers Between Funds out 0 0 - 0 0
Net Incoming (Outgoing)
Resources
12,349 -36,670 95 - -24,226 759,361
Gains/(losses) on Investment
Assets:-
Realised
Unrealised
Net Movement in Funds 12,349 -36,670 95 - -24,226 65,085
Fund Balances B/F at 1 Jan 163,042 791,569 4,971 215 959,797 135,352
Fund Balances C/F at 31 Dec 175,391 754,899 5,066 215 935,571 894,713

Page2

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

BALANCE SHEET

YEAR ENDED 31[st] December 2020

2020 2019
NOTE £ £
FIXED ASSETS
Investment Assets 5(c) 215 215
House 5(b) 155,000 155,000
TOTAL FIXED ASSETS 155,215 155,215
CURRENT ASSETS
Stock 0 0
Debtors 7 0 524
Short Term deposits
Current Account 12,710 7,604
Deposit Account 18,916 11,101
Development Account 17 16
New BuildingAccount 748,766 785,436
Cash in Hand 100 100
Accounts Receivable 2,210 2,147
TOTAL CURRENT ASSETS 782,719 806,927
Liabilities(falling due within 1year) 8 2,364 2,345
NET CURRENT ASSETS 780,355 804,582
NET ASSETS 935,570 959,797
FUNDS 6
UNRESTRICTED 175,390 163,042
DESIGNATED 754,899 791,569
RESTRICTED 5,066 4,971
ENDOWMENT 215 215
TOTAL FUNDS 935,570 959,797

PAGE 3

NOTES TO THE FINANCIAL STAEMENTS

1. PENWORTHAM ST MARY’S PARISH ACCOUNTING POLICIES:

The financial statements have been prepared in accordance with the Church Accounting Regulations 1997 as amended by the Church Accounting (Amendment) Regulations 2001 together with applicable accounting Standards and the Charities Statement of Recommended Practice (SORP).

The finical statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value.

FUNDS:

Explanations of the various funds are shown on earlier pages of the Annual Reports and Statement of Accounts. The relevant pagers are marked P and Q. The amounts and details of each fund are show on Pages 1 and 2 which are the statutory accounting requirements. The funds are also explained in further detail in Note6 on page7 and Note 9 on pages 8 and 9.

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

INCOMING RESOURCES:

Voluntary income and capital sources

Income from Investments

Gains and losses on Investments

Page 4

NOTES TO THE FINANCIAL STATEMENTS (cont’d)

RESOURCES USED:

These are summarised on page 1 and explained in detail, where necessary, in note 3 on page 6.

Grants

Activities directly relating to the work of the Church

FIXED ASSETS:

These are summarised on page 2 and explained in detail, where necessary, in Note 5a and Note 5b on page 7.

Consecrated property and moveable church furnishings

Other fixtures, fittings and office equipment

Investments

CURRENT ASSETS:

These are summarised on page 2 and explained in detail, where necessary in Note 7 on page 8.

Page 5

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31[st] December 2020

YEAR ENDED 31st December 2020
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
Total
2019
£ £ £ £ £ £
2 INCOMING RESOURCES
2(a) Incoming resources from donors
Plannedgiving:-
StewardshipEnvelopes 35,286 - - - 35,286 39,153
Income Tax recoverable 9,590 - - - 9,590 10,403
Collections(Open Plate)all services 3,236 - - - 3,236 8,307
SundryDonations 0 - 0 - 0 0
48,112 0 0 0 48,112 57,863
2(b) Other voluntary incoming resources
Donations,appeals etc 661 - 50 - 711 5,009
Legacies 3,000 - - - 3,000 0
3,661 0 50 0 3,711 5,009
2(c) Income from operating activities to
further the Council's objects
Magazines & Bookstall,etc sales 822 - - - 822 1,144
Fees - Weddings & Funerals 2,399 - - - 2,399 11,370
3,221 0 0 0 3,221 12,514
2(d) Income from operating activities to
generate funds
Magazine Advertising 30 - - - 30 924
Fetes, Bazaars & other fund raising
events
18 - 45 - 63 541
Bookstall sales - sundryitems 233 - - - 233 209
Miscellaneous - - - - 0 0
Vat Refunds - - - - 0 0
Church Letting 600 - - - 600 3,388
881 0 45 0 926 5,062
2(e) Income from investments
Dividends 16 - - - 16 9
Bank Interest 5 3,330 - - 3,335 4,745
21 3,330 0 0 3,351 4,753
2(f) Other ordinary incoming resources
Miscellaneous 0 - - - 0 780,942
Insurance Claims - - - 0 0
House Income 6,028 - - - 6,028 5,760
6,028 0 0 0 6,028 786,701
TOTAL
INCOMING
RESOURCES
61,925 3,330 95 0 65,349 871,902

Page 6

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31[st] December 2020

Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
Total
2019
£ £ £ £ £ £
3 RESOURCES EXPENDED
3(a) Grants
Missionary & charitable
giving
Church overseas:- - - - - 0 0
Missionarysocieties - - - - 0 100
Relief & development
agencies
0 - - - 0 0
Home missions & other
Church Societies
73 - - - 73 5,062
Secular Charities 701 - - - 701 3,234
774 0 0 0 774 8,396
3(b) Activities directly relating to
the work of the church
Ministry:-
Parish Share 27,008 40,000 - - 67,008 66,229
Assigned Fees/DBF 0 - - - 0 0
Clergyexpenses 1,511 - - - 1,511 3,593
Locum 233 - - - 233 0
Vicarage repairs 0 - - - 0 0
Vicarage - other costs 3,548 - - - 3,548 3,574
Church runningexpenses 9,902 - - - 9,902 8,355
Church Maintenance 868 - - - 868 3,473
Church Equipment 287 - - - 287 1,141
Upkeepof Services 870 - - - 870 3,198
Upkeepof churchyard 65 - - - 65 1,244
Parish Magazine & bookstall 392 - - - 392 349
Refurbishment of Church
Buildings
1,879 - 1,879 6,386
Salaries, wages, fees -
organists
1,360 - - - 1,360 3,072
Salaries, wages, fees - bell
ringers & choir
0 - - - 0 618
Miscellaneous - - - - 0 25
47,923 40,000 0 0 87,923 101,257
3(c) Church management &
admin
Printing,stationery&postage 475 - - - 475 2,117
Miscellaneous 0 - - - 0 0
Parish Office:-
Equipment & fittings - - - - 0 0
475 0 0 0 475 2,117
3(d) Costs ofgenerating funds
Fetes, Bazaars & other fund
raisingevents
0 - - - 0 94
Stewardship givingenvelopes 0 - - - 0 0
Miscellaneous 0 - - - 0 0
0 0 0 0 0 94
3(e) Support Costs
Junior Church 0 - - - 0 250
Youth - - - - 0 0
Child Protection - - - - 0 0
Miscellaneous - - - - 0 28
Bank Charges 79 - - - 79 72
79 0 0 0 79 350
3(f) Other Resources Expended
House Expenses 326 - - - 326 327
326 0 0 0 326 327
TOTAL
RESOURCES
EXPENDED
49,576 40,000 0 0 89,576 112,541

4 Staff Costs

Salaries, wages and fees

During the year the PCC employed: 2020 2019
£ £
a) For the whole year – organists 1,360 3,073

No payments were made for out of the pocket expenses to any PCC member, persons closely connected with them or any other related parties. During the year PCC member(s) David Thornton and Jill Howe received fees for acting as a verger at services.

5 FIXED ASSETS FOR USE BY THE PCC

Tangible fixed assets:

a) 177 Cop Lane which belongs to the PCC is included at a fixed asset The value in Dec 2011 was £155,000

b) Central Board of Finance Shares £215

6 ANALYSYS OF NET ASSETS BY FUND

Investment Fixed Assets
Current Assets
Current Liabilities
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Endowment
Funds
Total
2020
£
£
£
£
£
155,000
-
-
215
155,215
22,754
754,899
5,066
-
782,719
-2,364
-
-
-
-2,364
175,390
754,899
5,066
215
935,570

Page 8

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31[st] December 2020

7
Debtors
Income Tax Recoverable on Gift Aid
Debtors for Goods & Services
Prepayment and accrued income
Other Debtors
8
Liabilities – amounts falling due within one year
Deferred income
Creditors for Utility and other costs
Accruals of utility and other costs
2019
2018
£
£
0
0
524
524
8,278
8,278
-
-
8,801
8,801

2020
2019
£
£
1,500
1,500
-
-
864
845
2,364
2,345

9 Fund Details

UNRESTRICTED FUNDS

Unrestricted funds totalling £163,042 are the unspent balance available for future use.

DESIGNATED FUNDS

Designated funds totalling£754899.21comprise:-
i)
Unrestricted Legacies notified/received for proposed future spending on
the general refurbishment of the church buildings including the hall
i)
Provision out of unrestricted funds towards proposed future spending on
the replacement Parish Office equipment
i)
Funds for upkeep of Church buildings and new extension
£
4,729
1,404
748,766
754,899
RESTRICTED FUNDS
Restricted funds totalling£5065.98comprise:-
Singleton Memorial Estate and other funds
Pastoral Care Team
Sundry amounts in respect of Easter Lilies, flowers, Memorial Garden, Bell
ropes, Disabled facilities, Church linen, Choir and Fox Street community
Younity
Charitable donation
Church yard maintenance
£
1,371
544
2,694
157
225
75
5,066

Page 9

PAROCHIAL CHURCH COUNCIL OF ST. MARY’S PENWORTHAM

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31[st] December 2020

ENDOWMENT FUND

The Endowment Fund of £215 is a permanent endowment of 132 Central Board of Finance shares and requires the income to be spent on the Chancel.

TRANSFER BETWEEN FUNDS

Designated to General Funds £0

Restricted to General Funds £0

10 CERTAIN INDIVIDUAL ACCOUNT PERFORMANCES

£ Magazine and Bookstall income exceeded costs by 693

11 QUINQUENNIAL INSPECTION

The last quinquennial report on the Church was in 2017.

Pqfri to This report on the accounts of the PCC for Ihe 5'¢ar ended 31. Dec¢mb¢r: 2020: 15.hich are out on pages l and 2: is in respect of an examination carried out under R¢8ulation 3(3) of the Chur¢h A¢countin8 Regulations, 1997 10 2001 ('the regulations,) and Secti¢)n 43 of the Charities Act 1993 ('the A¢t'). As members of the PCC. i'ou ar¢ responsible for the preparation of the accounts: l'ou consider that the audit requiremeni of Regulation 3(3) and Section 43(2) of the Act do not appli.. It is mj, responsibility. lo issue this r¢port on those accounts in accordan¢¢ with the temis of Regulation 25. M!.. examination il'as carried out in accordance the G¢n¢ral Directions gii'en bi. the CharitS' Conllnissioners under Section 43(7)(b) of the Act and to be found in the Church guidan¢¢, 2001 editio issued h. the Finance Dii'tsion of the Archbishops, Council. Thal examination includes a rei'iew. of th¢ accounting records k¢pi th. the PCC and a comparison of the accounts iiith those records. It also includes ¢onsidering ani. unusual items or disclosures in the ac¢ounls and seek-ing explanations from s-ou as tnL8tees concerning an!. such matters. The procedures ￿dertak"en do not proi'ide a]1 the ¢i'idence that iiould be required in an auth'i, and consequently I do not express an audit opinion on th¢ kiell's 8ii.en by the accounts. In connection ii'ith mi. evamination, no matter has com¢ lo my attents'on.. which giTres m¢ rwonable cause lo belieTre that in An￿ material respeth the requir¢menls to keep accounting records in a¢cordance ￿'1th S¢¢tion 41 of the Act.. and to prepare accounts ii+jich accord the ￿cOunting records and Compli. ii'ith the requirements of the Act, and Regulations have not been met: or to H'hich, in mi. opinioTL atteniion should be drawn in order to ¢nable a proper understanding of th¢ a¢counls to be reached. signed dated Mrs Susan WaEsh 79. Greencrofi, Penii'ortha Preston PRI 9LB

PAGE 11

PENWORTHAM ST MARY’S PAROCHIAL CHURCH COUNCIL

AN EXPLANATION OF THE VARIOUS FUNDS USED IN OUR ACCOUNTS

The various funds which are used in our accounts are described below to assist in the understanding of the accounts and the management of our church finances.

UNRESTRICTED FUNDS:

All PCCs have a fund, normally called a General Fund, which they use to pay all the everyday expenses. This fund is “unrestricted” because the money has been given to the Church on the general understanding that it will be used at the discretion of the PCC for furthering the mission and ministry of the Church. Unless specified otherwise, all the money received by the Church is first put into the General Fund. Income generated from assets held in an unrestricted fund will be unrestricted income.

DESIGNATED FUNDS:

The PCC may decide to put some of the unrestricted fund money aside in other funds for use in the future (for example, for future building repairs). This money is “designated” for these particular projects for administrative purposes only. Designated funds are still unrestricted and can be moved to other general funds (re-designated or un-designated) if the PCC so decides.

RESTRICTED FUNDS:

PCCs also receive money which has been given for a particular purpose, for example

• a collection in church may be announced as being for a particular purpose (such as the purchase of new hymn books, the repair to the chancel roof or for Christian Aid)

All these sums have been restricted by the donor for a particular purpose and they cannot, and must not, be used by the PCC for any other purpose unless determined by the courts or the Charity Commission. Income generated from assets held in a restricted fund will generally be subject to the same restrictions as the fund.

An oral or written appeal or a collection for a special purpose, such as the fabric fund, will restrict the income for that purpose. There may be times when more money is raised than is needed for the particular purpose of the appeal. This excess money is restricted to the purpose and should be retained for use on the same purpose.

PAGE 12

RESTRICTED FUNDS (cont’d):

This situation can be eased if the PCC acquires the power beforehand to use any surpluses for other purposes. The easiest way to avoid any problems is by announcing at the time of the appeal that any unused balance will be put to the general purposes of the PCC. The restriction then applies until the purpose of the appeal has been satisfied. (A general notice to this effect can be placed prominently in the church to catch all occasions). If someone wants to make a significant donation for a particular purpose, the donor could be asked to specify that they give the PCC permission to use it for alternative purposes under certain conditions.

There could be a potential problem if insufficient funds are raised for a particular purpose and the shortfall cannot be made good out of general funds. The PCC should always make clear in appeals what it would do if this situation arose – for example, to return all the donations or to use them for another related purpose.

ENDOWMENT FUNDS:

Another form of restricted fund is known as an endowment fund. This is either money given to the church with the specific instruction that only the income gained from the money can be spent or an asset (such as a house) donated to be retained for continuing use by the Church. The original money or assets (the “capital”) cannot normally be spent and must remain in the form of equivalent assets (such as a house) or investments, but not necessarily the same asset that was given. It may be in a fund named after the donor.

There are two types of endowment fund, which must be distinguished in the accounts by note:

1. Permanent:

A particular type of restricted fund which, in accordance with the explicit requirements of the funding donor, must be held permanently (the PCC have no power to convert it into income and spend it like other income):

2. Expendable:

An endowment fund which may, in certain circumstances, be spent. (The PCC have this power, if given by the donor. This fund is not income when it is first received because there is no duty on the part of the PCC to apply it for its purposes. However, if the power to convert is used, then at that time the amount converted becomes income).

LOCATION OF FUND DETAILS IN THE ACCOUNTS:

At the top of pages 1, 5, and 6 of the accounts, allocated monies are shown against each of the above funds, namely unrestricted, designated restricted and endowment. In addition, note 9 to the financial statements, which is on pages 8 and 9 of the accounts, gives further details about each of the above funds.