2020-12-31-accounts - The Parochial Church Council Of The Ecclesiastical Parish Of East Blatchington - St Peter

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PARISH OF EAST BLATCHINGTON, SEAFORD

ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE PAROCHIAL CHURCH COUNCIL

Registered Charity number 1173506

for the year ended 31 December 2020

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CONTENTS
Page
Annual Report 1
Statement of financial activities 2
Balance Sheet 3
Notes to the accounts 4-9
Report of the independent examiner 10
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Church of St. Peter, Blatchington Hill, Seaford

Rector Revd Arwen Folkes, The Rectory, 86 Belgrave Road, Seaford BN25 2HE Independent M I Spencer Ltd, 70 Victoria Road, Polegate examiner :- East Sussex BN26 6BU Bankers :- Santander, Bootle, Merseyside, L30 4GB

Santander, Bootle, Merseyside, L30 4GB

Note: whilst enrolled members are free to discuss the annual report and financial statements at the annual parochial church meeting on 18th April 2021 it would be very much appreciated if any questions on the financial statements could be sent in writing to the Treasurer, Mr C Reynolds, 4 Dutchess Drive, Seaford, E Sussex, BN25 2XL as soon as possible before the meeting.

East Blatchington PCC

The Treasurer’s 2020 Financial Report

Regrettably the Lockdowns and Tier measures introduced by the Government to control the spread of the Covid-19 virus have resulted in a very considerable reduction in our normal fund raising activities. Income has fallen drastically whilst our running costs have increased. We have spent a little more on cleaning and on investing in technical equipment to enable the streaming of services. Income from Church activities was £86,062 (£103,179 -2019) with expenditure £97,804 (£91,088). We therefore have an overall deficit of £11,742 (£12,091 surplus)

Income

Total income is down 16% but there have been bright spots. Planned Giving £40,450 is 2% up and has been the mainstay of our income. Donations and appeals raised an impressive £10,728, as against £151 in the previous year. Our fund -raising activities such as the Blatchington Lectures, Open Gardens, Plant sales, and Fetes were all curtailed and Chapel Rooms lettings fell by 42% to £5,141 (£8,944 in 2019) Wedding fees etc. were 65% less at £2,310

Expenditure

The major reason for the increase has been the need to spend £12,680 (£4,428) on Church maintenance, particularly on the roof and stonework to prevent water ingress. Church running expenses were 13% higher at £11,767, but there have been savings elsewhere, upkeep of services was 7% less at £5,060 and Church Hall running costs 6% down at £6,496. There has also been a 24% reduction in costs for the upkeep of the Churchyard

Reserves

We started the year with £117,737 on Deposit with CCLA. It has been necessary to withdraw £20,000 to fund daily activity but we have received £10,482 in interest and income from stock market investments, so at 31 December 2019 these reserves stood at £108,219.

Longer Term Investments

These are stock market funds managed on our behalf by CCLA. On 1[st] January 2020 the book value was £323,783. Despite the difficult economic climate this figure has risen to £344,212 on 31[st] December 2020

Conclusion

Whilst the operating deficit is a very disappointing outcome, we have absorbed the loss and overall the PCC remains well funded.

Statement of Financial Activities

Notes Income and Endowments Voluntary income 2a Activities for generating funds 2b Income from investments 2c Church activities 2d Other income Total income and endowments Expenditure Church activities 3a Costs of generating funds 3b Other resources expended 3c Total expenditure Net incoming/(outgoing) resources for the year Other recognised gains /losses 1c Gains/(losses) on revaluation of fixed assets Gains/(losses) on investment income 5b Total funds b/fwd at 1st January 2020 6 Total funds c/fwd at 31st December 2020	UNRESTRICTED RESTRICTED TOTAL FUNDS FUNDS FUNDS 31.12.20 £ 65,306 1,325 66,631 1,498 0 1,498 273 10,209 10,482 7,451 0 7,451 0 0 0 74,528 11,534 86,062 92,346 2,630 94,976 0 0 0 1,828 1,000 2,828 94,174 3,630 97,804 -19,646 7,904 -11,742 0 0 0 0 0 0 0 20,428 20,428 -19,646 28,332 8,686 94,064 620,755 714,819 74,418 649,087 723,505	TOTAL FUNDS 31.12.19 £ 70,995 5,369 10,647 16,169 0
		103,179
		88,795 75 2,218
		91,088
		12,091 0 0 48,159
		60,250
		654,569
		714,819

Balance Sheet at 31st December 2020

Balance Sheet at 31st December 2020
Fixed Assets Tangible fixed assets Investment Current Assets Debtors Short term deposits Unrestricted Short term deposits Restricted Cash at bank St Peters Cash in hand Creditors due within one year Net current assets TOTAL NET ASSETS Funds Unrestricted Funds Restricted Funds	Notes 5(a) 5(b) 8 9 7 7	4,409 44,809 63,410 22,676 16	2020 2019 £ £ 249,005 246,512 344,212 323,783 4,030 64,536 53,201 27,452 17 149,237 -4,713 130,288 144,524 723,505 714,819 74,418 94,064 649,087 620,755 723,505 714,819
		135,320 -5,032

				714,819
				94,064 620,755
				714,819

Approved by the Parochial Church Council on 31st Match 2021 and signed on its behalf by:

Rev. Arwen Folkes Chairman

The accompanying notes form a part of these financial statements

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

a Accounting convention

The financial statements have been prepared under the Charities Act 2011 and Charities Act 2016 and in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the 2016 update of the Statement of Recommended Practice, Accounting and Reporting by Charities [SORP (FRS102)]

The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at fair value. The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their affiliation to another body, nor those which are informal gatherings of church members.

b Funds accounting

Funds held by the PCC are:

Unrestricted funds - general funds which can be used for PCC ordinary purposes.

Designated funds - monies set aside by the PCC out of unrestricted funds for specific future purpose or projects.

Restricted funds -

a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest;

b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given.

Any balance remaining unspent at the end of the year is carried forward as a balance on that fund.

c Income and Endowments

These are included in the Statement of Financial Activities [SOFA] when:

the PCC becomes legally entitled to the use of the resources;
and the inflow of economic benefit is probable; and
the monetary value can be measured with sufficient reliability.

Voluntary Income

Funds raised from events and trading activities are reported gross in the SOFA Collections and Planned Giving receivable is recognised only when received.

Gift Aid and other tax claims are included in the SOFA at the same time as the cash donations to which they relate.

Grants and donations are included in the SOFA when any preconditions preventing their use by the PCC have been met.

Income from investments

Dividends and interest entitlements are included in the accounts when receivable

All other income

All other income is recognised when it is receivable.

Gifts in kind are accounted for at a reasonable estimate of their fair value at the time of the gift.

Gains and losses on investments

Realised gains are recognised when the investments are sold. Unrealised gains and losses are accounted for on revaluation on 31 December each year.

The Recognised Gain from the sale of St Johns in 2007 is being held within the Restricted Funds.

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020

d Expenditure

Expenditure is accounted for on an accruals basis and is accounted for gross.

Grants

Grants payable are recognised in the accounts when a commitment has been made externally and there are no pre-conditions still to be met for entitlement to the grant which remain within control of the PCC.

Church Activities

The diocesan parish contribution is accounted for when paid. Any parish contribution 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

e Fixed Assets

Tangible fixed assets

As consecrated and beneficial property of any kind is excluded from the statutory definition of "charity" by Section 10(2) (a) and (c) of the Charities Act 2011 such assets are not capitalised in the financial statements.

Movable church furnishing 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. For inalienable property acquired prior to 31st December 1990 there is insufficient cost information available and therefore such assets are not valued in the accounts. Individual items acquired since 1st January 1991 have been capitalised in the accounts and depreciated over their useful economic life (see depreciation note below).

All expenditure on consecrated or beneficed buildings and individual items under £1000 are written off in the year they were incurred.

Depreciation

Depreciation is calculated to write down the cost of tangible fixed assets, excluding freehold properties, over their expected useful lives. The rates generally applicable are:

Organ write off at the rate of £1000 per annum Fixtures, Fittings & Moveable Furnishings 25% straight line basis

No depreciation is provided on buildings as the currently estimated residual value of the properties (discounted for monetary inflation since their capitalisation) is not less than their carrying value and the remaining useful life of these assets currently exceeds 50 years, so that any depreciation charges would be immaterial.

An impairment review is carried out each year and any resultant loss identified included in expenditure for the year.

f 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 uncollectible.

Short-term deposits include cash held on deposit either with the CBF Church of England, or at the bank.

g Loans

A £1000 loan was made to the Parochial CC of Seaford to support the Covid relief effort to the local community. This loan was repaid in full in December 2020, prior to the end of the financial year.

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Income and Endowments

Note a Voluntary income Planned giving Collections at all services Gift days Grants Sundry donations and appeals 6 Income tax recoverable b Activities for generating funds Fairs, bazaars and other fund- raising events c Investments income Interest & dividends d Income from Church Activities Church hall lettings etc Fees from weddings etc Parish magazine Chichester Trip Total income & Endowments	UNRESTRICTED RESTRICTED TOTAL FUNDS FUNDS FUNDS 31.12.20 £ 40,450 0 40,450 2,325 275 2,600 0 0 0 0 1,000 1,000 10,678 50 10,728 11,853 0 11,853 65,306 1,325 66,631 1,498 0 1,498 1,498 0 1,498 273 10,209 10,482 273 10,209 10,482 5,141 0 5,141 2,310 0 2,310 0 0 0 0 0 0 7,451 0 7,451 74,528 11,534 86,062	TOTAL FUNDS 31.12.19 £ 39,924 6,282 0 65306.00 517 13,004 11,266 70,994 5,369 5,369 10,647 10,647 8,944 6,645 0 580 16,169 103,179

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Expenditure

a Church Activities Missionary and charitable giving Overseas Home Ministry costs Diocesan parish contribution other clergy costs Church running expenses Wedding & Funeral Expenses Church maintenance Upkeep of services Upkeep of churchyard Church hall running costs Church hall Major repairs Depreciation Chichester Trip Messy Church b Costs of generating funds c Other resources expended Independent examination fee SVET Grant - for Covid relief Total expenditure	UNRESTRICTED RESTRICTED TOTAL FUNDS FUNDS FUNDS 31.12.20 £ £ £ 0 0 0 0 260 260 0 260 260 47,736 0 47,736 4,340 0 4,340 11,767 0 11,767 495 0 495 12,680 0 12,680 5,060 0 5,060 1,786 0 1,786 6,496 0 6,496 0 0 0 1,987 2,370 4,357 0 0 0 0 0 0 92,346 2,630 94,976 0 0 0 0 0 0 1,828 0 1,828 0 1,000 1,000 1,828 1,000 2,828 94,174 3,630 97,804	TOTAL FUNDS 31.12.19 £ 600 1,740 2,340 46,344 4,339 10,192 ) 3,011 ) 4,428 5,444 2,360 6,951 0 2,645 580 161 88,795 75 75 2,218 2,218 91,088

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019

4 Staff Costs

a Wages and Salaries

The PCC did not employ any staff during 2020. Self-employed organists, cleaners and gardeners were hired to supply these services.

b Payments to PCC members

Payments made to professional gardener, Churchwarden Nick Linsell, for upkeep of the churchyard totalled £1599 (2019 £2110) during the year. No other payments or expenses were paid to any other member which were not in the nature of reimbursed expenses. Total of expenses reimbursed to PCC members during the year was £930 (2019 £497)

Tangible fixed assets	UR & R		R	UR	UR & R
	Freehold land	R	Plant	Electrical	Fixtures
	and	Organ	&	Equipment	&	Total
	buildings		Equipment		Fittings
Cost as at 1st January 2020	228417	36530	5480		1098	271525
Additions				1473	5378	6850
Cost as at 31st December 2020	228417	36530	5480	1473	6476	278376
Depreciation as at 1st January 2020		22000	2740		275	25015
Charge for the year		1000	1370	368	1619	4357
Depreciation as at 31st December 2020	0	23000	4110	368	1893	29372

Net book value at 31st December 2020	228417	13530	1370	1105	4583	249005

Net book value at 31st December 2019	228417	14530	2740	0	824	246511

The freehold land and buildings comprise the Chapel Rooms. For accounting purposes the historical cost of this property was £228,417.

5 (b) Investments Market value 1st January 2020 Purchases at Cost Revaluation Gain/(Loss) Market value 31st December 2020	Investment Property Total 308,277 15,507 323,784 0 0 0 21,199 -771 20,428
	329,476 14,736 344,212

During 2007 two investments were purchased, £200,000 in the CBF Church of England Investment Fund Income Shares and £20,000 in the CBF Church of England Property Fund.

The PCC are content with the current performance of the investments during the year.

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Sundry Donations and Appeals

Included within this amount are legacies of £4,500, which were spent at the Trustee's discretion during the year, on capital items.

7 Analysis of Net assets by fund Unrestricted Restricted TOTAL Funds Funds Fixed Assets 8,321 240,684 249,005 Investments 344,212 344,212 Current Assets 71129 64,191 135,320 Current Liabilities (5,032) (5,032) 74,418 649,087 723,505 8 Debtors 2020 2019 Church hall letting fees due 0 54 PGS & tax refunds due from HMRC 4409 3859 Sundry debtors 0 117 4409 4030 9 Creditors: amounts falling due within one year 2020 2019 Accruals for utilities and other costs 5032 4713 Sundry Creditors 0 0 5032 4713	7 Analysis of Net assets by fund Unrestricted Restricted TOTAL Funds Funds Fixed Assets 8,321 240,684 249,005 Investments 344,212 344,212 Current Assets 71129 64,191 135,320 Current Liabilities (5,032) (5,032) 74,418 649,087 723,505 8 Debtors 2020 2019 Church hall letting fees due 0 54 PGS & tax refunds due from HMRC 4409 3859 Sundry debtors 0 117 4409 4030 9 Creditors: amounts falling due within one year 2020 2019 Accruals for utilities and other costs 5032 4713 Sundry Creditors 0 0 5032 4713	7 Analysis of Net assets by fund Unrestricted Restricted TOTAL Funds Funds Fixed Assets 8,321 240,684 249,005 Investments 344,212 344,212 Current Assets 71129 64,191 135,320 Current Liabilities (5,032) (5,032) 74,418 649,087 723,505 8 Debtors 2020 2019 Church hall letting fees due 0 54 PGS & tax refunds due from HMRC 4409 3859 Sundry debtors 0 117 4409 4030 9 Creditors: amounts falling due within one year 2020 2019 Accruals for utilities and other costs 5032 4713 Sundry Creditors 0 0 5032 4713	7 Analysis of Net assets by fund Unrestricted Restricted TOTAL Funds Funds Fixed Assets 8,321 240,684 249,005 Investments 344,212 344,212 Current Assets 71129 64,191 135,320 Current Liabilities (5,032) (5,032) 74,418 649,087 723,505 8 Debtors 2020 2019 Church hall letting fees due 0 54 PGS & tax refunds due from HMRC 4409 3859 Sundry debtors 0 117 4409 4030 9 Creditors: amounts falling due within one year 2020 2019 Accruals for utilities and other costs 5032 4713 Sundry Creditors 0 0 5032 4713
74,418 649,087		723,505
	2020 0 4409 0 4409 2020 5032 0 5032		2019
			54 3859 117
			4030
			2019
			4713 0
			4713

Independent examiner’s report to the PCC of St Peter’s, East Blatchington.

I report on the accounts of the PCC of St Peter’s, East Blatchington for the year ended 31[st] December 2020, which are set out on pages 2 to 9.

I report to the trustees on my examination of the accounts of the PCC of St Peter’s, East Blatchington (the PCC) for the year ended 31[st] December 2020.

Responsibilities and basis of report

As the charity trustees of the PCC 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 PCC’s accounts carried out under section 145 of the 2011 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: -

accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

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

Signed: Name: Michele Spencer Professional qualifications: FAIA, CTA,

Address: M I Spencer Ltd 70 Victoria Road Polegate East Sussex BN26 6BU