2020-12-31-accounts - The Parochial Church Council Of The Ecclesiastical Parish Of St. Michael, Breaston

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Annual Report for 2020 of The Parochial Church Council of the Ecclesiastical Parish of St. Michael, Breaston

ADMINISTRATIVE INFORMATION ................................................................................................................. 2 Reference details ............................................................................................................................................ 2 STRUCTURE, GOVERNMENT AND MANAGEMENT ............................................................................................ 3 Governing Constitution ................................................................................................................................... 3 Risk Management Assessment ........................................................................................................................ 3 Health and Safety ............................................................................................................................................ 3 Public benefit .................................................................................................................................................. 3 Appointment of Trustees ................................................................................................................................ 3 Financial Year .................................................................................................................................................. 4 Standing Committee ....................................................................................................................................... 4 Parochial Church Council (PCC) ....................................................................................................................... 4 OBJECTIVES AND ACTIVITIES ...................................................................................................................... 4 ACHIEVEMENTS AND PERFORMANCE ............................................................................................................ 5 INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST. MICHAEL, BREASTON ........................................................................................................... 5 Statement of Financial Activities ..................................................................................................................... 7 Balance sheet .................................................................................................................................................. 8 Statement of assets and liabilities ................................................................................................................... 8 Analysis of income and expenditure ............................................................................................................... 9 Notes to the financial statements for the year ended 31 December 2019 ................................................... 10 APPROVAL .......................................................................................................................................... 11

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Administrative information

Reference details

St. Michael’s, Breaston is a registered charity, number 1165581, rejoicing in the full name of The Parochial Church Council of the Ecclesiastical Parish of St. Michael, Breaston . The address of the church office is St. Michael’s Church Office, Main Street, Breaston, Derby, DE72 3DX, telephone (01332) 872094. The date of registration as a charity is 16 February 2016.

Charity Trustees

The members of the PCC are classed as the trustees of the charity and their names are listed below (under PCC Members ).

Bankers

Our current and deposit accounts are held by Barclays Bank plc, Leicester, LE87 2BB. We also have a current account at Lloyds Bank plc, 8 Tamworth Rd, Long Eaton, Nottingham NG10 1JJ, Further deposit funds are also held with CCLA Investment Management Ltd., Senator House, 85 Queen Victoria Street, London, EC4V 4ET

Examiner

At the 2020 APCM, the PCC recommended that we re-appoint Clayton & Brewill as Independent Examiners. This motion was approved. Clayton & Brewill have conducted an examination of these accounts and the underlying records and their report is found on page 3.

Clergy Licensed to the Parish

Rev’d Chris Smedley (Rector) Rev’d Maria Przeslawski (Permission to Officiate)

Day-to-Day Management

Day-to-day management of the charity is delegated to the Rector in conjunction with the Staff Team.

At 31 December 2020, the staff team comprised:

Rev’d Chris Smedley (Rector) Simon Bentley (Youth, Children’s and Community Worker) Jodie Kirk (Young Church & Sunbeams Coordinator and CYM Trainee)

The Standing Committee comprises the Rector, the Churchwardens, the PCC Treasurer and the PCC Secretary and two members of the Parochial Church Council.

PCC Members

The PCC members who formed the PCC after the APCM in September 2020 are:

Ex-officio members: Elected members (until 2022 APCM) Rev’d Chris Smedley (Rector) Jonathan Lupton (PCC Secretary) Anne Long Jan Wilkinson (Churchwarden) Matt Tovey Stephe Bowley (Churchwarden) Elected members (until 2023 APCM) Adam Collishaw Phil Lees (Deanery Synod) Ben Gooding Colin Lowe (Deanery Synod) Paul Stuttle (PCC Treasurer) Jeanne Wilson (Deanery Synod) Sarah Warburton Co-opted member Elected members (until 2021 APCM) Claire Collishaw (Parish Safeguarding Link)

Maureen Hayne Stephen Lacey

St. Michael’s, Breaston

Registered Charity number 1165581

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Structure, Government and Management

Governing Constitution

Parochial Church Council (Powers) Measure 1956 are applicable . The PCC is a body corporate and a registered charity.

Risk Management Assessment

In common with all other organisations, the PCC is potentially at risk from a number of sources. The Secretary and the Treasurer are responsible, on behalf of the PCC, for ensuring that these risks are reviewed so as not to expose the PCC to undue risk and that the PCC is in a position to correctly deal with any situation that may arise. Risks have been assessed and mitigated. Examples of areas that are kept under review include:

Financial Strategy . Ensuring that we have sufficient reserves to meet expenditure and that income levels are maintained. Regular management accounts are supplied to budget holders and PCC.
Data and Copyright Protection . Ensuring that we comply with all current regulations. There is a Data Protection policy in place to comply with GDPR.
Employment Regulations . Ensuring that all current legislation and regulations are complied with and ’best practice’ in employment matters is observed.
Insurance . Insurance levels are reviewed annually.
Property . Buildings are professionally surveyed every 5 years and a maintenance plan developed.
Safeguarding . A policy is in force for the protection of children and vulnerable adults in the care of the PCC and its volunteers. A Parish Safeguarding Officer is appointed by the PCC and is responsible for ensuring the policy is enforced.
Internal Financial Controls . Expenditure and income are reported against budget and last year. Bank statements are reconciled monthly and two signatures are required for all payments, the majority of which are electronic payments. Cash is banked regularly.

Health and Safety

The Health and Safety Coordinator is responsible for ensuring that all the Health and Safety policies are kept up to date and adhered to, and that regular safety checks are performed.

The Coronavirus pandemic required the Health and Safety Coordinator and PCC to closely follow Government and Diocesan advice on the closures and subsequent re-openings of the church and hall and ensure risk assessments were prepared, approved and implemented.

Public benefit

The PCC has considered the guidance of the Charity Commission with regard to public benefit. In planning activities, the PCC consider Charity Commission guidance and how it relates to our objectives.

Appointment of Trustees

Any person on the Electoral Roll of the parish may stand for election to the PCC. There are up to 9 ‘ordinary’ elected members of the PCC, members who serve for a period of three years. Ex-officio members of the PCC are clergy licensed to the parish, churchwardens, lay readers and members of deanery, diocesan or general synods.

Churchwardens are elected annually at the Annual Meeting for the Election of Churchwardens; electors are members of the church Electoral Roll and those on the civil electoral roll for the parish of Breaston.

For other elected members, elections take place at the Annual Parochial Church Meeting (which immediately follows the Annual Meeting for the Election of Churchwardens); the electors are only those on the church Electoral Roll.

In both cases, all candidates must be proposed and seconded in writing by persons entitled to attend the respective meetings. There is no recruitment method for trustees, as all Roll members are eligible. Upon appointment, new trustees are provided with the Charity Commission Guidelines relating to their legal duties and the smooth running of the PCC.

St. Michael’s, Breaston

Registered Charity number 1165581

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Financial Year

The financial year runs from 1st January to 31st December.

The income of St Michael’s in 2020 was £141,979 (£192,642 previous year) and expenditure totalled £132,499 (£236,536) of which the Common Fund was £60,413 (£57,767).

The net surplus for the year was £9,480 (2019 Deficit £43,894). This was arrived at after:

the final costs of the church re-ordering project of £1,706 (2019 - £91,609)
the net increase in the value of investments of £10,977 (£19,660)

Cash reserves and investments were £169,732 (£160,689) which is well within our reserve policy.

Investment policy and objectives

It is our policy to invest surplus funds with CCLA Investment Management Ltd.

Reserves policy

It is PCC policy to maintain sufficient reserves of cash to enable payment of three months’ unrestricted expenditure and a suitable sum to cover emergency situations. Currently, the sum considered to cover these potential outgoings is £45,000 (£45,000) .

Standing Committee

The Standing Committee is a committee of at least five people required by ecclesiastical law, which states that the minister and churchwardens are ex officio plus at least two other PCC members elected by the PCC. By convention, the PCC Secretary and Treasurer are elected, but this can be changed at any time by the PCC. The Standing Committee has the power to transact the business of the PCC between its meetings, subject to any directions given by the PCC. It meets (usually monthly) between meetings of the PCC.

Parochial Church Council (PCC)

The PCC normally meets bi-monthly; there were four normal meetings during the year, including the meeting to appoint officers immediately after the Annual Parochial Church Meeting (APCM). Note that this is fewer than usual because meetings were not held until the APCM which was delayed until September because of the Covid19 pandemic. The November meeting was a virtual one, on Zoom.

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year. In so far as the Trustees are aware:

there is no relevant information of which the charity’s independent examiner is unaware, and
the Trustees have taken all steps necessary to make themselves aware of any relevant information and to establish that the independent examiner is aware of that information.

Objectives and Activities

The PCC has the responsibility for cooperating with the Rector, Chris Smedley, in promoting in the parish of St. Michael’s, Breaston in the whole mission of the Church. Our vision is “To grow as disciples of Jesus”. Our mission is the way that we work out the vision, by:

Loving God, ourselves and others
Experiencing the reality of God in everyday life
Serving, support, sharing

The church provides worship and teaching services on Sundays in normal times –

at 8:45 am in a traditional format,
at 10:30 am in a more contemporary format,
Evensong at 6:30 pm (alternating with the sister parish within the benefice).
There is also a communion service on Thursdays at 9:30 am.
Worship and teaching for children are available at the 10:30 am service.

St. Michael’s, Breaston

Registered Charity number 1165581

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The services are open to everyone (when we are permitted to have a congregation in the church building) regardless of personal background, gender or personal circumstances.

During the pandemic from March 2020 onwards, the PCC was (and continues to be) committed to providing services and means of worship and prayer in church or remotely to comply with whatever government regulations and diocesan guidelines are in force at each stage of the crisis. The PCC will be reviewing how the church emerges from the pandemic; many of the changes (for example live-streamed services) are likely to be an ongoing feature of our pattern of worship.

There were, at various points during 2020 from March onwards:

Online pre-recorded services on Sundays at 10:30
Online live services on Sundays at 10:30
Live services on Sundays at 9:00
The church open for private prayer on Wednesdays and Saturdays
Communion on Wednesday mornings
Online morning prayer on Facebook on Mondays to Fridays

Achievements and performance

2020 has been a year like no other in the life of the nation! This has been particularly challenging for all Anglican parishes and other denominations, and the PCC has worked tirelessly with many very talented volunteers to continue to provide worship either, live in church, or live streamed or pre-recorded online throughout a regular changing situation. Some of the initiatives that taken have been

Online pre-recorded services on Sundays at 10:30
Online live and attended services on Sundays at 9:00 and 10:30
‘Zoom’ coffee after services
The church open for private prayer on Wednesdays and Saturdays
Communion on Wednesdays
Sunbeams online
House and youth groups online
Morning Prayer with the Rector

For more than half the year, physical services have not been possible so it was feared that the loss of plate and envelope giving would have had a significant impact on giving. In practice, we are pleased and grateful that this was not the case and regular giving was maintained via standing orders, BACS and cheques.

The hours of the Youth and Community worker were reduced by mutual consent to reduce overheads.

It is therefore pleasing to report a surplus of £9,480 of which £10,977 is the increase in our CCLA Investment Fund

Independent Examiner’s Report to the Trustees of The Parochial Church Council of the Ecclesiastical Parish of St. Michael, Breaston

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31[st] December 2020 which are set out on pages 7 to 11.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

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

St. Michael’s, Breaston

Registered Charity number 1165581

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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the accounts do not accord with those records

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed: (by email copied below)

Address: Clayton & Brewill Chartered Accountants, Cawley House, 149-155 Canal Street, Nottingham, NG1 7HR.

St. Michael’s, Breaston

Registered Charity number 1165581

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Statement of Financial Activities

Unrestricted Restricted Endowment Total Prior year funds funds funds funds total funds	Unrestricted Restricted Endowment Total Prior year funds funds funds funds total funds
Incoming resources Incoming resources from generated funds Voluntary income Activities for generating funds Investment income Incoming resources from charitable activities Other incoming resources Total income Resources used Cost of generating funds Cost of generating voluntary income Charitable activities Governance costs Total expenditure Net income / (expenditure) resources before transfer Transfers Gross transfers between funds - in Gross transfers between funds - out Other recognised gains / losses Gains / losses on investment assets Gains on revaluation, fixed assets, charity's own use Net movement in funds Total funds brought forward Total funds carried forward Represented by Unrestricted Designated General fund Designated Church improvement & maintenance fund Youth, Children and Community Fund Restricted Agency collection Restricted	93,790 — — 93,790 122,223 3,351 — — 3,351 3,861 17,777 — — 17,777 25,513 13,979 — — 13,979 21,858 13,082 — — 13,082 19,187
	141,979 — — 141,979 192,642 — — — — — 131,881 — — 131,881 235,936 618 — — 618 600
	132,499 — — 132,499 236,536
	9,480 — — 9,480 (43,894) — — — — 10,000 — — — — (10,000) — — — — — — — — — —
	9,480 — — 9,480 (43,894)
	160,689 — — 160,689 204,583
	170,168 — — 170,168 160,689 20,000 — — 20,000 20,000 149,390 — — 149,390 125,277 8,285 — — 8,285 8,110 (7,507) — — (7,507) 7,302 — (1,290) — (1,290) (1,290) — 1,290 — 1,290 1,290

St. Michael’s, Breaston

Registered Charity number 1165581

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Balance sheet

*Balance sheet*
Class and code Description Fixed assets Computer Equipment Office Furniture Total Fixed assets Current assets Barclays current account Barclays deposit account Lloyds Bank Current Account CBF deposit account No 1 CBF Deposit No 2 Church Improvement Fund CBF Deposit No 3 Legacy Fund CBF - Investment Fund CBF/612191003D Accounts Receivable Total Current assets Liabilities Agency collections Accounts Payable Total Liabilities Net Asset surplus(deficit) Reserves Excess / (deficit) to date Starting balances Total Reserves Represented by funds Unrestricted Designated Restricted Endowment Total	This year Last year — — — —
	— — 7,674 7,745 101 15,148 675 — 43,008 27,202 — 451 — 2,847 118,274 107,297 — —
	169,732 160,689 (525) — — —
	(525) —
	170,257 160,689
	9,569 (43,894) 160,689 204,583
	170,257 160,689 169,390 145,277 778 15,412 — — — —
	170,168 160,689

Statement of assets and liabilities

	General Designated Restricted Endowment	This year Last year
Current assets - Cash at bank and in hand Barclays current account - Barclays deposit account - Lloyds Bank Current Account - CBF deposit account No 1 - CBF Deposit No 2 Church Improvement Fund - CBF Deposit No 3 Legacy Fund - Totals Current assets - Investments CBF - Investment Fund CBF/612191003D - Totals Liabilities - Agency accounts Agency collections - Totals Liabilities - Creditors: Amounts falling due in one year Accounts Payable - Totals Grand total	29,177 (18,773) (2,819) — (9,924) 10,025 — — (737) 637 776 — 43,008 — — — 9,820 (9,820) — — (26) 26 — —	7,585 7,745 101 15,148 675 — 43,008 27,202 — 451 — 2,847
	71,317 (17,905) (2,043) — 105,091 13,183 — —	51,368 53,392 118,274 107,297
	105,091 13,183 — — — — (525) —	118,274 107,297 (525) —
	— — (525) — 1,518 — (1,518) —	(525) — — —
	1,518 — (1,518) —	— —
	174,890 (4,722) — —	170,168 160,689

St. Michael’s, Breaston

Registered Charity number 1165581

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Analysis of income and expenditure

Total Unrestricted Designated Restricted Endowment This year Last year *INCOME AND ENDOWMENTS* *Incoming resources from generated funds - Voluntary income* Gift Aid - Bank 61,098 720 — — 61,818 51,152 Gift Aid Collection 1,354 — — — 1,354 5,313 Other planned giving 1,710 — — — 1,710 2,585 Loose plate collections 2,786 — — — 2,786 8,210 Regular gift days — — — — — — Church Re-Ordering Project — 2,070 — — 2,070 25,689 Flower Festival & Easter Journey Income — — — — — — Gift Aid — — — — — — Gifts of quoted securities — — — — — — Young Church & Sunbeams — 2,732 — — 2,732 2,688 Mission projects - income — — — — — — Casual Gift Aid — — — — — 30 Tax recoverable on Gift Aid 17,974 — — — 17,974 23,078 Legacies 1,025 — — — 1,025 — Recurring grants — — — — — — Non-recurring one-off grants — — — — — — Other funds generated 2,141 180 — — 2,321 3,478 Total 88,088 5,702 — — 93,790 122,223 *Incoming resources from generated funds - Activities for generating funds* Bookstall sales - fund raising — — — — — — Church hall lettings - fund raising — — — — — — Magazine income - advertising 1,210 — — — 1,210 1,562 Parish magazine sales 2,141 — — — 2,141 2,299 Rummage sales etc — — — — — — Total 3,351 — — — 3,351 3,861 *Incoming resources from generated funds - Investment income* Increase in Investments 10,977 — — — 10,977 19,660 Bank and building society interest 189 — — — 189 310 Rent from lands or buildings 6,610 — — — 6,610 5,542 Total 17,777 — — — 17,777 25,513 *Incoming resources from charitable activities* Fees for weddings and funerals 1,698 — — — 1,698 4,898 Bookstall sales to promote objectives — — — — — — Church hall lettings - objectives 12,281 — — — 12,281 16,960 Total 13,979 — — — 13,979 21,858 *Other incoming resources* Youth Worker — 13,082 — — 13,082 19,187 Insurance claims — — — — — — Surplus - sales of fixed assets — — — — — — Total — 13,082 — — 13,082 19,187	Total Unrestricted Designated Restricted Endowment This year Last year *INCOME AND ENDOWMENTS* *Incoming resources from generated funds - Voluntary income* Gift Aid - Bank 61,098 720 — — 61,818 51,152 Gift Aid Collection 1,354 — — — 1,354 5,313 Other planned giving 1,710 — — — 1,710 2,585 Loose plate collections 2,786 — — — 2,786 8,210 Regular gift days — — — — — — Church Re-Ordering Project — 2,070 — — 2,070 25,689 Flower Festival & Easter Journey Income — — — — — — Gift Aid — — — — — — Gifts of quoted securities — — — — — — Young Church & Sunbeams — 2,732 — — 2,732 2,688 Mission projects - income — — — — — — Casual Gift Aid — — — — — 30 Tax recoverable on Gift Aid 17,974 — — — 17,974 23,078 Legacies 1,025 — — — 1,025 — Recurring grants — — — — — — Non-recurring one-off grants — — — — — — Other funds generated 2,141 180 — — 2,321 3,478 Total 88,088 5,702 — — 93,790 122,223 *Incoming resources from generated funds - Activities for generating funds* Bookstall sales - fund raising — — — — — — Church hall lettings - fund raising — — — — — — Magazine income - advertising 1,210 — — — 1,210 1,562 Parish magazine sales 2,141 — — — 2,141 2,299 Rummage sales etc — — — — — — Total 3,351 — — — 3,351 3,861 *Incoming resources from generated funds - Investment income* Increase in Investments 10,977 — — — 10,977 19,660 Bank and building society interest 189 — — — 189 310 Rent from lands or buildings 6,610 — — — 6,610 5,542 Total 17,777 — — — 17,777 25,513 *Incoming resources from charitable activities* Fees for weddings and funerals 1,698 — — — 1,698 4,898 Bookstall sales to promote objectives — — — — — — Church hall lettings - objectives 12,281 — — — 12,281 16,960 Total 13,979 — — — 13,979 21,858 *Other incoming resources* Youth Worker — 13,082 — — 13,082 19,187 Insurance claims — — — — — — Surplus - sales of fixed assets — — — — — — Total — 13,082 — — 13,082 19,187
	13,979 — — — 13,979 21,858 — 13,082 — — 13,082 19,187 — — — — — — — — — — — —
	— 13,082 — — 13,082 19,187
INCOME TOTAL	123,195 18,784 — — 141,979 192,642

EXPENDITURE

Cost of generating funds - Cost of generating voluntary income

Costs of applying for grants Other Restricted (eg Father Georges) Costs of fetes other Fund Raising Investment management costs Total *Charitable activities* Flowers for Church Giving to missionary societies Giving - relief and development agencies	— — — — — — — — — — — — — — — — — — — — — — — —
	— — — — — — — — — — — 493 4,380 — — — 4,380 4,370 500 — — — 500 3,000

St. Michael’s, Breaston

Registered Charity number 1165581

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Hardship Fund Home mission Gala Day & Easter Journey Secular charities Youth Worker Mission projects - expenditure Common Fund to Derby Diocese Assistant staff costs Salary of parish administrator Working expenses of incumbent Funeral, wedding and other related costs Visiting speakers / locums Council tax Parsonage house expenses Water rates - vicarage Youth Worker and costs Young Church & Sunbeams Young Church - do not use in 2017 Church running - insurance Church office - telephone Organ / piano tuning Church maintenance Cleaning Upkeep of services Upkeep of churchyard Administration Computer Hardware & Software Church running - electric Church running - gas Church running - water Magazine expenses Hall running - electricity Hall running - gas Hall running - insurance Hall running - maintenance Hall running - telephone Hall running - water Hall + major repairs - structure Library & Office upkeep Re-ordering Project - Church Total *Governance costs* Governance costs examination/audit fee Total	— 3,000 — — — 45 60,413 36 2,818 — 771 — — — 514 — — — 2,690 427 — 1,110 2,651 1,105 1,140 1,179 798 6,495 — 100 2,955 764 928 1,102 1,722 — 100 — 723 —	— — — — — — — — — — — — — — — 28,040 3,243 — — — — — — — — — — — — — — — — — — — — 429 — 1,706	— — — — — — 3,000 3,399 — — — — — — — — — — — 1,848 — — 45 — — — 60,413 57,767 — — 36 — — — 2,818 3,071 — — — 291 — — 771 3,210 — — — — — — — — — — — — — — 514 502 — — 28,040 38,388 — — 3,243 1,501 — — — — — — 2,690 2,082 — — 427 526 — — — — — — 1,110 3,654 — — 2,651 2,440 — — 1,105 2,434 — — 1,140 66 — — 1,179 1,401 — — 798 558 — — 6,495 5,302 — — — — — — 100 64 — — 2,955 2,160 — — 764 1,063 — — 928 1,072 — — 1,102 1,113 — — 1,722 1,877 — — — — — — 100 64 — — 429 — — — 723 610 — — 1,706 91,609
	98,463 618	33,418 —	— — 131,881 235,936 — — 618 600
	618	—	— — 618 600
EXPENDITURE TOTAL	99,081	33,418	— — 132,499 236,536

GRAND TOTAL	24,113	(14,634)	— — 9,480 (43,894)

Notes to the financial statements for the year ended 31 December 2020

ACCOUNTING POLICIES

1. Basis of preparing the financial statements

The financial statements of the charity have been prepared under the Church Accounting Regulations 2006 in accordance with applicable accounting standards and the current Statement of Recommended Practice, Accounting and Reporting by Charities and applicable accounting standard FRS102.

The financial statements have been prepared under the historical cost convention except for investment assets, which are shown at market value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law.

2. Consecrated land and buildings and movable church furnishings:

Consecrated and beneficed property is excluded from the financial statements by section 96(2) (a) of the Charities Act 1993.

St. Michael’s, Breaston

Registered Charity number 1165581

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3. Tangible Fixed Assets for use in the charity

These are capitalised if they can be used for more than one year and cost at least £1,000. There were no such assets at 31st December 2020.

No value is placed on movable church furnishings held by the churchwardens on special trust for the Parochial Church Council and which require a faculty for disposal since the Parochial Church councillorship consider this to be an inalienable property. All expenditure incurred during the year on consecrated or beneficed buildings and movable church furnishings, whether maintenance or improvement, is written off as expenditure in the Statement of Financial Activities and separately disclosed.

4. VAT

The charity is not registered for VAT and all irrecoverable VAT is charged against the expenditure heading for which it was incurred.

5. Taxation

The charity is exempt from tax on its charitable activities.

6. Fund accounting

The Parochial Church Council has both unrestricted and restricted funds.

Unrestricted funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application to the general purposes of the PCC.

Restricted funds relate to donations and grants which are specified for a particular purpose. Income is included in incoming resources of restricted funds when received. The relevant expenditure is then matched as restricted expenditure.

Designated Funds are general funds set aside by the PCC for use in the future. Designated funds remain unrestricted and the PCC will if appropriate move any surpluses not ear-marked for current purposes to other General Funds. As at 31st December 2016 there 2 such funds designated:

Buildings and Maintenance fund – for the repair and improvement of the church and church hall
Youth, Children and Community fund – to support the work Youth, Children and Community activities and employees in Breaston.

Approval

Approved by the Parochial Church Council for the Ecclesiastical Parish of St. Michael, Breaston on 8th March 2021 and signed on its behalf by Rev’d Chris Smedley, Rector and PCC Chairman.

8 March 2021

St. Michael’s, Breaston

Registered Charity number 1165581

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