The Parish of St Michael Cornhill
Annual Report and Financial Statements of the
Parochial Church Council
For the
year ending 31 December 2021
Registered Charity Number 1179240
PCC of St Michael, Cornhill Year ending 31 December 2021
Contents
PCC annual report ....................................................... 3 Report of the independent examiner ......................... 6 Statement of Financial Activities ................................ 7 Balance Sheet .............................................................. 8 Notes to the financial statements.......................... 9-14
page 2
PCC of St Michael, Cornhill Year ending 31 December 2021
PCC Annual report
Aim and Purposes
The primary objective of all PCCs is the promotion of the Gospel of our Lord Jesus Christ for the benefit of the public. Given the location and history of the church building, the PCC adopted the following objectives:
-
To enable the mission of the Church to spread the good news of Jesus and make disciples of all nations
-
To continue the musical tradition of St Michael’s
-
To allow the public to benefit from the restored organ and new bells
The PCC has specific responsibilities for the maintenance of the church building situated in Cornhill.
Objectives and activities
St Michael’s main objective is to encourage further the worship of Almighty God through choral evensong services on Mondays, matins on Tuesdays and occasional services on Sundays following the Book of Common Prayer. In addition a Chinese speaking congregation use the building for their services.
The PCC runs Organ recitals on Monday Lunchtimes.
The PCC has considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The Church provides benefit to the public by providing resources and facilities to provide a place for public worship and prayer, for the provision of pastoral care for those living or working in the Parish, and for missionary and outreach work.
In order to facilitate this work, it is important that the PCC maintain the fabric of the Church of St Michael.
Achievements and performance
In normal circumstances, the church is opened during the week to afford a place of peace and reflection.
All are welcome to attend the Services. As well as our regular Services, we enable our community to celebrate and thank God at the milestones of the journey through life, at Baptism, Marriage and Thanksgiving Services, together with recognising the service of Livery Companies to the City and world at large.
Facilities are made available for those dealing with the problems of drug misuse.
During the Covid lock downs which began in March 2020, services were live streamed or prerecorded as were organ recitals, enabling a much more geographically dispersed audience to participate. In mid 2021 services and recitals returned to the normal format. We are grateful for the members of the choir who adapted to the new arrangements, and to our employees, members of the congregation and parish clerks who responded to the lockdown with creativity and determination.
page 3
PCC of St Michael, Cornhill Year ending 31 December 2021
Financial review
The net income for the year was £35,037 compared to net expenditure of £23,066 in 2020 (across both Unrestricted and Restricted Funds). A net outflow was planned, to use the bequest mentioned below however better than expected income has resulted in a net surplus for the year.
In 2015, the Church received a generous bequest of £155,000 in the Will of a former parishioner; this bequest is restricted to the furtherance of music and is not available for the running of the Church. This fund continues to underpin much of the musical activity of the Church and as at 31 December 2021 there was an unutilised balance on this fund of £24,448.
The PCC thanks the Thalben-Ball Trust for financial assistance for the support and training of an Organ Scholar, and the PCC of St Helen Bishopsgate for supplying clergy and other staff.
Reserves policy
The reserves policy of the PCC is to hold unrestricted funds to cover around three months’ expenditure. It is expected that our income in future years will come from collections taken at services and recitals and grants from other charities. These income streams can be volatile and difficult to predict. The ability of the PCC to manage costs in the short term is limited as staff costs and costs associated with running the church building would take time to reduce.
At the end of 2021 unrestricted funds amounted to some £169,000 which is more than the £22,000 needed to cover three months’ expenditure. It is expected that some of these funds will be used for repairs to the building in the future.
Structure, governance and management.
The Parochial Church Council is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure and is registered with the Charity Commission.
The method of appointment of members is set out in the Church Representation Rules. The PCC met seven times during the year. A Standing committee transacts the business of the Council between PCC meetings, subject to any directions given by the Council. It met three times in 2021.
The PCC has complied with the duty to have due regard to the House of Bishops’ Safeguarding Policy and Practice Guidance.
page 4
PCC of St Michael, Cornhill Year ending 31 December 2021
Administrative information
St Michael’s Church is situated in Cornhill, City of London. It is part of the Diocese of London. The correspondence address is: St Michael’s Church, St Michael’s Alley, London, EC3V 9DS. PCC members who have served at any time from 1 January 2021 until the date this Report was approved are:
Priest in Charge: The Reverend C Skrine (Resigned 25 March 2021) Curates: The Reverend H Eatock-Taylor The Reverend L Cornelius (Resigned 30 September 2021) Wardens: Dr D Bland Alderman Robert Howard R Phelps P Pritchett Miss M Vander-Steen Miss Y Wang Dr L Webster Elected: L Elbourne Mrs E Hunt T Liu D Monro Mrs J Taylor S Sodadasi (Appointed 17 May 2021) R Meacher (Appointed 17 May 2021) Ex Officio: Miss D Buggs (General Synod representative) S Hung (Deanery Synod representative) Mrs H White (Deanery Synod representative)
The PCC has banking arrangements with:
CAF Bank Ltd 25 Kings Hill Avenue, Kings Hill West Malling, Kent ME19 4JQ
The Examiners of the Accounts are: Griffin Stone Moscrop & Co 21-27 Lamb’s Conduit Street London WC1N 3GS
Approved by the PCC on 20 April 2022 and signed on its behalf by:
P Pritchett
P Pritchett
page 5
PCC of St Michael, Cornhill Year ending 31 December 2021
Independent examiner's report to the Trustees of The Parish Church of St Michael, Cornhill
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2021.
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
Your attention is drawn to the fact that the charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 charity 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.
This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.
Richard Hill
Richard Hill FCA For and on behalf of Griffin Stone Moscrop & Co 21-27 Lamb’s Conduit Street London WC1N 3GS
Date: 22 April 2022
page 6
PCC of St Michael, Cornhill Year ending 31 December 2021
Statement of Financial Activities
for the Year ending 31 December 2021
| Note INCOME and ENDOWMENTS from: Donations and Legacies 2 (a) Charitable Activities 2 (b) TOTAL EXPENDITURE on: Charitable activities 3 (a) Other Costs 3 (b) TOTAL NET INCOME/(EXPENDITURE) TRANSFERS BETWEEN FUNDS NET MOVEMENTS IN FUNDS RECONCILIATION of FUNDS Total Funds brought forward Total Funds carried forward |
Unrestricted Restricted TOTAL Funds Funds 2021 £ £ £ 67,293 3,410 70,703 60,023 - 60,023 127,316 3,410 130,726 77,802 16,290 94,092 1,597 - 1,597 79,399 16,290 95,689 47,917 (12,880) 35,037 - - - 47,917 (12,880) 35,037 120,654 37,328 157,982 168,571 24,448 193,019 |
Unrestricted Restricted TOTAL Funds Funds 2020 £ £ £ 39,380 150 39,530 35,145 1,830 36,975 |
|---|---|---|
| 74,525 1,980 76,505 |
||
| 67,243 30,756 97,999 1,572 - 1,572 |
||
| 68,815 30,756 99,571 |
||
| 5,710 (28,776) (23,066) - - - |
||
| 5,710 (28,776) (23,066) 114,944 66,104 181,048 |
||
| 120,654 37,328 157,982 |
page 7
PCC of St Michael, Cornhill Year ending 31 December 2021
Balance Sheet at 31 December 2021
| ance Sheet at 31 December 2021 | ||
|---|---|---|
| Note Current Assets Debtors 5 Bank: PCC Fryer Music Bequest Current Liabilities Creditors: amounts falling due within one year 6 Net Current Assets Total Net Assets 7 Parish Funds Unrestricted 8 - Designated 8 Restricted 8 |
2021 £ 2,861 176,719 26,377 205,957 12,938 193,019 193,019 150,471 18,100 24,448 193,019 |
2020 £ 9,501 130,321 39,418 |
| 179,240 21,258 |
||
| 157,982 | ||
| 157,982 | ||
| 102,554 18,100 37,328 |
||
| 157,982 |
The financial statements were approved by the PCC on 20 April 2022 and signed on its behalf by:
P Pritchett
P Pritchett
page 8
PCC of St Michael, Cornhill Year ending 31 December 2021
Notes to the Accounts
1. Accounting Policies
Basis of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements have been prepared under the historical cost convention and include all transactions, assets and liabilities for which the PCC is responsible at law. They do not include the accounts of church groups that owe their affiliation to another body, nor those that are informal gatherings of church members.
The Parish Church of St Michael, Cornhill constitutes a public benefit entity as defined by FRS 102.
Fund accounting
Unrestricted Funds: income funds which may be spent on the PCC’s general purposes.
Restricted Funds: comprise (a) income from endowments which may be applied only on the restricted purposes intended by the donor and (b) revenue donations or grants for a specific PCC activity intended by the donor. Where there is no separate investment, interest is apportioned on an average balance basis.
Designated Funds: unrestricted and whose purpose is determined by the PCC on a revocable basis.
Incoming Resources : planned giving, collections and donations are recognised when received. Donations include donations in kind representing amounts paid by third parties to cover expenditure relating to the PCC. Tax refunds are included on a receivable basis. Grants and Legacies are accounted for when there is a legal entitlement to the amounts due. Dividends are accounted for when receivable and interest on an accrued basis. All incoming resources are accounted for gross. Voluntary Church Rate is recognised in the year the demand is raised. Any outgoings in connection are charged in the year incurred.
Resources Expended: Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. Common Fund expected to be paid over is accounted for when due.
Fixed Assets: Consecrated and benefice property is not accounted for in the accounts in accordance with s 10(2)(a) and (c) of the Charities Act 2011.
Moveable church furnishings held by the Vicar and Churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the Church’s inventory, which can be inspected at any reasonable time. For anything acquired prior to 2000, there is insufficient cost information available and therefore such assets are not valued in the financial statements.
Equipment used within the church premises is depreciated on a straight line basis according to their estimated useful lives: individual items with a cost of under £2,500 are written off in the year of acquisition.
page 9
PCC of St Michael, Cornhill Year ending 31 December 2021
Notes to the Accounts
| 2. Incoming Resources 2 (a) Voluntary Income: Collections (incl Gift Aid) Grants Donations Voluntary Church Rate 2 (b) Income from Church activities: Rental income Organ Recitals (incl Gift Aid) CD sales & contributions Choir & Facility Fees Wedding Services Other income Total Incoming Resources |
Unrestricted Restricted TOTAL Funds Funds 2021 £ £ £ 4,796 - 4,796 2,500 - 2,500 23,942 3,410 27,352 36,055 - 36,055 67,293 3,410 70,703 34,604 - 34,604 2,824 - 2,824 - - - 9,884 - 9,884 3,210 - 3,210 9,501 - 9,501 60,023 - 60,023 127,316 3,410 130,726 |
Unrestricted Restricted TOTAL Funds Funds 2020 £ £ £ 8,195 - 8,195 3,250 - 3,250 19,519 150 19,669 8,416 - 8,416 |
|---|---|---|
| 39,380 150 39,530 |
||
| 19,276 - 19,276 2,194 - 2,194 - 1,830 1,830 11,856 - 11,856 769 - 769 1,050 - 1,050 |
||
| 35,145 1,830 36,975 |
||
| 74,525 1,980 76,505 |
page 10
PCC of St Michael, Cornhill Year ending 31 December 2021
Notes to the Accounts
| 3. Resources Expended 3 (a) Church activities Ministry: Common Fund Clergy & Sacristy Diocese: Wedding Fees Parish Events Music Director & Standing Choir Special Services Choir Organ Scholar Organ Recitalists CD recording Music Licence Organists & Musicians for services Organ costs Administration PA Outsourced costs Printing Web/IT/Phone Books/Adverts/Subs Office costs VCR Church maintenance Cleaning Utilities Repairs, maintenance, renewals 3 (b) Governance (Independent Examiner fee) Total Resources expended |
Unrestricted Restricted TOTAL Funds Funds 2021 8,000 - 8,000 1,132 - 1,132 530 - 530 1,800 - 1,800 11,462 - 11,462 10,079 15,343 25,422 7,975 - 7,975 600 - 600 2,960 650 3,610 - - - 300 - 300 904 200 1,104 3,316 - 3,316 26,134 16,193 42,327 10,513 - 10,513 3,072 - 3,072 138 - 138 3,113 - 3,113 249 - 249 246 97 343 1,400 - 1,400 18,731 97 18,828 1,028 - 1,028 14,368 - 14,368 6,079 - 6,079 21,475 - 21,475 1,597 - 1,597 79,399 16,290 95,689 |
Unrestricted Restricted TOTAL Funds Funds 2020 6,000 - 6,000 62 - 62 428 - 428 1,060 1,485 2,545 |
|---|---|---|
| 7,550 1,485 9,035 |
||
| 16,430 17,101 33,531 9,740 230 9,970 500 2,350 2,850 2,000 100 2,100 - 4,961 4,961 300 - 300 2,260 390 2,650 1,821 - 1,821 |
||
| 33,051 25,132 58,183 |
||
| 9,779 - 9,779 3,150 - 3,150 107 - 107 382 - 382 19 - 19 251 148 399 1,400 - 1,400 |
||
| 15,088 148 15,236 |
||
| 1,382 - 1,382 4,395 - 4,395 5,777 3,991 9,768 |
||
| 11,554 3,991 15,545 |
||
| 1,572 - 1,572 |
||
| 68,815 30,756 99,571 |
page 11
PCC of St Michael, Cornhill Year ending 31 December 2021
Notes to the Accounts
- 4a. Payments to PCC Members
No payments were made to PCC members in 2021 or 2020. During the year, no PCC members received any benefits in kind (2020 - £NIL). During the year, no PCC members received any reimbursement of expenses relating to their duties as PCC members (2020 - £NIL).
- 4b. Payments from PCC Members
Giving by nine PCC members amounted to £4,765 (2020: ten gave £9,900).
- 4c. Employee numbers
During the year the PCC had an average of 1.0 of a full time employee (2020 – 1.5 of a full time employee).
4d. Staff costs
| Salaries National insurance Pension |
2021 2020 £ £ 30,149 32,379 - - 841 856 |
|---|---|
| 30,990 33,235 |
National Insurance costs were covered by the employer's annual allowance.
The PCC defines Key Management Personnel (KMP) as the members of the PCC. None of these received payment from the PCC during the year.
5. Debtors
| Gift Aid claims Debtors Prepayments Creditors Ministry Administration Music Governance Repairs Utilities Deposits Deferred income |
Unrestricted Restricted TOTAL Fund Funds 2021 £ £ £ - - - 2,628 - 2,628 233 - 233 2,861 - 2,861 Unrestricted Restricted TOTAL Fund Funds 2021 £ £ £ 422 - 422 618 - 618 4,986 - 4,986 1,600 - 1,600 354 - 354 475 - 475 300 - 300 4,183 - 4,183 12,938 - 12,938 |
Unrestricted Restricted TOTAL Fund Funds 2020 £ £ £ 7,594 - 7,594 1,869 - 1,869 38 - 38 |
|---|---|---|
| 9,501 - 9,501 |
||
| Unrestricted Restricted TOTAL Fund Funds 2020 £ £ £ 2,162 - 2,162 10,550 160 10,710 1,190 - 1,190 1,580 - 1,580 838 - 838 595 - 595 - - - 4,183 - 4,183 |
||
| 21,098 160 21,258 |
6. Creditors
page 12
PCC of St Michael, Cornhill Year ending 31 December 2021
Notes to the Accounts
- Analysis of Total Assets
| Current assets Bank balances Debtors Current liabilities Creditors |
Unrestricted Restricted TOTAL Fund Funds 2021 £ £ £ 178,648 24,448 203,096 2,861 - 2,861 12,938 - 12,938 168,571 24,448 193,019 |
Unrestricted Restricted TOTAL Fund Funds 2020 £ £ £ 132,251 37,488 169,739 9,501 - 9,501 21,098 160 21,258 |
|---|---|---|
| 120,654 37,328 157,982 |
page 13
PCC of St Michael, Cornhill Year ending 31 December 2021
Notes to the Accounts
8. Movements in Funds
| UNRESTRICTED General Designated – Building Fund RESTRICTED Fryer Music Bequest TOTAL UNRESTRICTED General Designated – Building Fund RESTRICTED Fabric Fryer Music Bequest TOTAL |
At Incoming Resources At 01.01.21 resources expended Transfers 31.12.21 102,554 127,316 79,399 - 150,471 18,100 - - - 18,100 |
|---|---|
| 120,654 127,316 79,399 - 168,571 |
|
| 37,328 3,410 16,290 - 24,448 |
|
| 37,328 3,410 16,290 - 24,448 |
|
| 157,982 130,726 95,689 - 193,019 |
|
| At Incoming Resources At 01.01.20 resources expended Transfers 31.12.20 96,844 74,525 68,815 - 102,554 18,100 - - - 18,100 |
|
| 114,944 74,525 68,815 - 120,654 |
|
| 3,991 - 3,991 - - 62,113 1,980 26,765 - 37,328 |
|
| 66,104 1,980 30,756 - 37,328 |
|
| 181,048 76,505 99,571 - 157,982 |
Notes:
Funds may be applied as follows: UNRESTRICTED (i) Designated – Building Fund: for maintenance and repairs of St Michael, Cornhill.
RESTRICTED
(i) Fabric: for the maintenance and upkeep of the Church only.
(ii) Fryer Music Bequest: a gift to be used specifically for the furtherance of music in and in connection with the church as directed by a named person.
page 14