THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
PHILBEACH GARDENS, EARLS COURT, KENSINGTON LONDON SW5 9EB
ANNUAL REPORT AND FINANCIAL STATEMENTS
OF THE PAROCHIAL CHURCH COUNCIL
FOR THE YEAR ENDED 31 DECEMBER 2020
Registered Charity 1182543
The Clergy House 50 Philbeach Gardens London SW5 9EB
Bankers
National Westminster Bank Pic South Kensington Station Branch 18 Cromwell Place London SW7 2LB
Independent Examiner
M B Boydell FCA Boydell & Co Chartered Accountants 146B Chiswick High Road London
W4 1PU
REPORT OF THE PAROCHIAL CHURCH COUNCIL
FOR THE YEAR ENDED 31 DECEMBER 2020
A registered charity (number 1182543), being part of the Church of England in the Diocese of London, Kensington Episcopal Area, Archdeaconry of Middlesex. The Parish is under the Pastoral Jurisdiction of the Bishop of Fulham under the London Plan and “ Alternative Episcopal Oversight" was requested on 5 th March 2017.
The Parochial Church Council presents its Annual Report with the financial statements for the year ended 31 December 2020.
PRINCIPAL ACTIVITY
St Cuthbert's PCC has the responsibility of co-operating with the Vicar, in promoting in the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has responsibilities for the maintenance and upkeep of the buildings and contents of the Church and The Philbeach Halls complex.
MEMBERS (TRUSTEES)
Members of the PCC are either ex-officio, co-opted or elected by the Annual Parochial Church Meeting in accordance with the Church Representation Rules. The last APCM was held on 11 October 2020 and during the calendar year 2020 the following served as members of the PCC.
Ex-officio members
| Vicar: | The Reverend Paul Bagott | (Chairman) |
|---|---|---|
| Churchwardens: | Prof. N J B Green | (also Hon. Treasurer) |
| Mr P A Hills | ||
| Deanery Synod Representative: | ||
| Mrs E Gomez | ||
| Elected members | Mrs H Gore | |
| Mr B Troop | (PCC secretary) | |
| Mr B E Parsons | ||
| Mr P Scutt | ||
| Mrs T Harvey | (elected 31st March 2019) | |
| Mrs N Faddul | (elected 31st March 2019) | |
| Mrs J P Llewellyn | (elected 11th October 2020) |
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
REPORT OF THE PAROCHIAL CHURCH COUNCIL
(CONTINUED)
COMMITTEES
The PCC also operates through three committees which meet between its Rill meetings.
THE STANDING COMMITTEE
This is the only committee required by law. It has the power to transact the business of the PCC between the meetings thereof subject to any directions given by the Council.
MISSION AND OUTREACH COMMITTEE
The committee members attend to the ministry of the parish church to the local community of Earls Court and seeks ways of reaching out to people by distributing leaflets to homes and hotels advertising the major festival services of Easter, Harvest Thanksgiving and Christmas. Also the members see to the matter of welcoming newcomers to Church services and arrange for all members of the congregation to be invited to refreshments after the sung services on Sundays and major festivals.
MUSIC AND LITURGY COMMITTEE
The Committee members under the direction of the Vicar discuss Musical and Liturgical matters relating to Church Services throughout the year and what is required of the Director of music, the organist and choir.
REVIEW OF THE YEAR
The full PCC met four times during the calendar year 2020 when reports were received from the Vicar, Churchwardens and the Hon Treasurer. Reports were also received on the matters of the Church Primary School and Chelsea Deanery Synod.
CHURCH ATTENDANCE
There were 106 members on the electoral roll as at 31 March 2020 of whom 49 were resident in the parish (46%) and 57 were non-resident (54%). The usual Sunday congregations numbered around 55 but larger numbers attended the major festivals throughout the year.
However, because of the Covid 19 Pandemic the weekly attendance was greatly changed and there were periods of lockdown when the Church was closed. Church Services were Live Streamed with an increased on-line attendance.
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
REPORT OF THE PAROCHIAL CHURCH COUNCIL
FOR THE YEAR ENDED 31 DECEMBER 2020
(CONTINUED)
FINANCIAL RESULTS FOR 2020
For the year ended 31st December 2020 there was a deficit of £ 20,859 made up of a deficit of £3,266 on the unrestricted fund and a deficit of £ 17,593 on the restricted (Church Restoration) fund after the transfer of £ 10,000 from the unrestricted fund.
RISK MANAGEMENT
The trustees continue to monitor the risks to which the Church and the Philbcach Halls are exposed and mitigate these risks with appropriate policies and practices, particularly in relation to the safeguarding of Children & Vulnerable Adults, Premises and Cash.
RESERVES POLICY
The unrestricted reserves at 31 December 2020 were £ 75,448 (excluding the Philbeach Halls freehold property which is included in the accounts at a valuation of £ 4,354,324).
It is PCC policy to maintain a balance on free reserves of at least 3 months unrestricted expenditure which is estimated at around £50,000. More work needs to be done to maintain this level and this is now a priority for the Trustees.
THE CHURCH SCHOOL
The Vicar is an ex officio Governor of St Cuthbert with St Matthias Church of England Primary School in Warwick Road, Earls Court, and one other member of the PCC is also a Governor. The PCC supports the school in many ways and there is a very strong link between Church and School.
CHURCH RESTORATION
Fortunately the PCC was able to repay the sum of £ 5,000 off tire loan of £ 40,000 to the Diocese which was provided towards the renewal of the nave roof many years ago, and it is hoped that such annual repayments can continue in future years until the loan is repaid in full. A further Church Restoration Project currently under way is the conversion of the undercroft and crypt for local community and parish office use.
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
REPORT OF THE PAROCHIAL CHURCH COUNCIL
CHARITABLE ACTIVITY
The PCC gives some small grants through lent appeals, and other activities. The focus of support for charities is through the availability of the Church premises for community and charity fundraising. This has included support for Age UK Kensington, St Cuthbert's primary school, Christmas Carol Service for St Lazarus charity for leprosy, Christian Aid and St. Cuthberts' Centre. This was also subject to major changes when the Church was closed during the periods of lockdown due to the Covid 19 Pandemic restrictions.
THE PHILBEACH HALLS TRUST
The Vicar and the PCC are jointly the administrative trustees of the Philbeach Halls Trust and they manage the building, receive the income and pay the expenses therefrom. This building provides an important part of the Church's mission to Earls Court and beyond by the letting out of the premises to Registered Charities which offer much needed help to those suffering from illness, poverty and distress.
St Cuthbert's Centre (Registered Charity Number 803638) is a Day Centre for the poor and homeless providing inexpensive hot meals, advice and recreation etc., five days a week. The project, which operates from the main Church Hall, originated in 1987 thanks to the vision of Father Bill Kirkpatrick, who sadly died on 4th January 2018.
Victim Support Kensington & Chelsea is a Registered Charity independent of the Church which provides help and support for those people who are victims of crime within the Royal Borough. Its counselling rooms/offices are situated in the Lower Philbeach Hall. The RAHAB Project Counselling rooms are situated in the offices behind the stage of the upper Philbeach Hall. This is also a registered charity.
Rental income received from our property enabled a grant of £127,500 to be made to the PCC in 2020 to cover the shortfall of general income for the running of St Cuthbert's Church (£117,500) and The Church Restoration Fund (£10,000). This continued financial help is vital for the future of the parish church.
On behalf of the Parochial Church Council
The Reverend Paul Chairman
2"^ May 2021
RESPONSIBILITIES OF THE MEMBERS OF THE CHURCH COUNCIL
Charity Law requires the members of the Church Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the results for that year. In preparing those financial statements, the members are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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• comply with the applicable accounting standards subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
| TOTAL FUNDS | Unrestricted | Restricted | TOTAL | TOTAL | |
|---|---|---|---|---|---|
| Funds | Funds | 2020 | 2019 | ||
| 2020 | 2020 | ||||
| Notes | £ | £ | £ | £ | |
| INCOMING RESOURCES | |||||
| Voluntary income | 2(a) | 41,892 | 6,600 | 48,492 | 33,297 |
| Other voluntary incoming resources | 2(b) | 100 | - | 100 | 22,629 |
| Income from church activities | 2(c) | 144,118 | 95 | 144,213 | 235,470 |
| Income from investments | 2(d) | 4 | 1 | 5 | 11 |
| TOTAL INCOMING RESOURCES | 186,114 | 6,696 | 192,810 | 291,407 | |
| RESOURCES EXPENDED | |||||
| Raising funds | 3(a) | - | - | - | 89 |
| Church activities | 3(b) | 179,380 | 34,289 | 213,669 | 212,248 |
| TOTAL RESOURCES USED | 179,380 | 34,289 | 213,669 | 212,337 | |
| NET INCOMING/(OUTGOING) | |||||
| RESOURCES | 6,734 | (27,593) | (20,859) | 79,070 | |
| TRANSFERS BEWEEN FUNDS | (10,000) | 10,000 | - | - | |
| (3,266) | (17,593) | (20,859) | 79,070 | ||
| SURPLUS ARISING ON THE REVALUATION | |||||
| OF TANGIBLE FIXED ASSETS | (1 & 5) | - | - | - | 110,354 |
| (3,266) | (17,593) | (20,859) | 189,424 | ||
| BALANCES BROUGHT FORWARD | |||||
| AT 1 JANUARY 2020 | 4,433,038 | (72,696) | 4,360,342 | 4,170,918 | |
| BALANCES CARRIED FORWARD | |||||
| AT 31 DECEMBER 2020 | 4,429,772 | (90,289) | 4,339,483 | 4,360,342 |
The notes on pages 8 to 13 form part of these accounts.
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
BALANCE SHEET
AT 31 DECEMBER 2020
| Notes | 2020 | 2019 | |
|---|---|---|---|
| £ | £ | ||
| TANGIBLE FIXED ASSETS | |||
| Freehold property | (1&5) | 4,354,324 | 4,354,324 |
| CURRENT ASSETS | |||
| Debtors | (6) | 8,600 | 6,938 |
| COIF deposit accounts | 1,900 | 1,895 | |
| Cash at bank | 14,018 | 41,433 | |
| Cash in hand | 200 | 200 | |
| 24,718 | 50,466 | ||
| LIABILITIES: AMOUNTS FALLING | |||
| DUE WITHIN ONE YEAR | (7) | (39,559) | (44,448) |
| NET CURRENT LIABILITIES | (14,841) | 6,018 | |
| TOTAL ASSETS LESS LIABILITIES . | 4,339,483 | 4,360,342 | |
| NET ASSETS | £ 4,339,483 | £ 4,360,342 | |
| FUNDS | (8) | ||
| Unrestricted | 4,429,772 | 4,433,038 | |
| Restricted | (90,289) | (72,696) | |
| £ 4,339,483 | £ 4,360,342 |
Approved by the Parochial Church Council on 2nd May 2021 and signed on its behalf by
Prof. N J B Green (Churchwarden and Honorary Treasurer)
The notes on pages 8 to 13 form part of these accounts.
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the Charities SORP 2015.
The financial statements have been prepared under the historical cost convention except for the valuation of freehold property (the church halls) which is shown at the trustees' valuation (based on the insurance valuation at 31 December 2020).
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 nor those that are informal gatherings of church members.
Funds
Unrestricted funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application for the general purposes of the PCC. Funds designated for a particular purpose are restricted.
Incoming Resources
Voluntary income and capital sources. Collections are recognised when received by or on behalf of the PCC. Planned giving receivable under Gift Aid is recognised only when received. Income tax recoverable on Gift Aid donations and church collections is recognised when tire income is received. Sales of goods and magazines from the church bookstall are accounted for gross.
Other ordinary income
Rental income from the letting of church hall premises is recognised when the rental is due.
Income from investments
Dividends and interest are accounted for when receivable. Tax recoverable on such income is recognised in the same accounting year.
Gains and losses on investments
Realised gains or losses are recognised when investments are sold. Unrealised gains or losses are accounted for on revaluation of investments at 31 December.
Resources used Grants Grants and donations are accounted for when paid over.
Activities directly relating to the work of the Church The diocesan common fund quota is accounted for when due.
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES (Continued)
Tangible Fixed assets
Consecrated and benefice property is not included in the accounts in accordance with s.l0(2)(a)and (c) of the Charities Act 2011.
No value is placed on movable church furnishings held by the churchwardens on special trust for the PCC and which require a faculty for disposal since the PCC considers this to be inalienable property. All expenditure incurred during the year on consecrated or benefice buildings and movable church furnishings, whether maintenance or improvement, is written off as expenditure in the SOFA and separately disclosed.
No cost information is available for the church halls, so they are included at a deemed cost by the trustees on 31 December 2020 (based on the insurance valuation).
Current assets
Amounts owing to the PCC at 31 December 2020 in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncollectable.
| 2. | INCOMING RESOURCES | Unrestricted | Restricted | ||
|---|---|---|---|---|---|
| Funds | Funds | TOTAL | TOTAL | ||
| 2020 | 2020 | 2020 | 2019 | ||
| £ | £ | £ | £ | ||
| 2(a) | Voluntary income | ||||
| Planned giving: | |||||
| Gift Aid | 22,892 | - | 22,892 | 9,448 | |
| Tax recoverable | 8,832 | - | 8,832 | 7,145 | |
| Other | 522 | - | 522 | 382 | |
| Church Collections | 2,440 | - | 2,440 | 4,933 | |
| Donations and concert takings | 5,282 | 6,350 | 11,632 | 4,824 | |
| Hire of Church | 1,924 | 250 | 2,174 | 6,565 | |
| 41,892 | 6,600 | 48,492 | 33,297 | ||
| **2(b) ** | Other voluntary incoming resources | ||||
| Grants | - | - | - | 22,529 | |
| Fund raising events | 100 | - | '100 | 100 | |
| 100 | - | 100 | 22,629 |
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2. INCOMING RESOURCES (Continued)
| Unrestricted | Restricted | |||
|---|---|---|---|---|
| Funds | Funds | TOTAL | TOTAL | |
| 2020 | 2020 | 2020 | 2019 | |
| £ | £ | £ | £ | |
| 2(c) Income from church activities | ||||
| Bookstall | 95 | 95 | 82 | |
| Property lettings - (Rent & service charges) | 143,218 | - | 143,218 | 234,433 |
| Fees - funerals and weddings | 900 | - | 900 | 955 |
| 144,118 | 95 | 144,213 | 235,470 | |
| 2(d) Income from investments | ||||
| Dividends and interest including | ||||
| any reclaimed tax | 4 | 1 | 5 | 11 |
| TOTAL INCOMING RESOURCES | 186,114 | 6,696 | 192,810 | 291,407 |
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
| 3. | RESOURCES EXPENDED | Unrestricted | Restricted | ||
|---|---|---|---|---|---|
| Funds | Funds | TOTAL | TOTAL | ||
| 2020 | 2020 | 2020 | 2019 | ||
| £ | £ | £ | £ | ||
| 3(a) | Raising Funds: | ||||
| Stewardship expenses | - | - | - | 89 | |
| - | - | - | 89 | ||
| 3(b) | Church activities: | ||||
| Donations to charitable organisations | 100 | 100 | 100 | ||
| Diocesan Common Fund | 60,000 | 60,000 | 60,000 | ||
| Clergy expenses | - | - | 234 | ||
| Incumbents working expenses | - | - | 790 | ||
| Upkeep of services | 1,546 | 1,546 | 2,345 | ||
| Repairs and maintenance | 15,135 | 33,645 | 48,780 | 17,118 | |
| Choir fees | 10,105 | 10,105 | 8,075 | ||
| Director of music and organists' fees | 12,380 | 12,380 | 11,095 | ||
| Music expenses | 625 | 625 | 307 | ||
| Organ and piano tuning and repairs | 2,292 | 2,292 | 2,214 | ||
| Insurance premiums | 20,261 | 20,261 | 19,703 | ||
| Flowers and decorations | 852 | 852 | 705 | ||
| Gas | 9,525 | 9,525 | 10,370 | ||
| Electricity | 1,800 | 1,800 | 2,518 | ||
| Water | 143 | 143 | 126 | ||
| Furniture and equipment | 4,963 | 4,963 | 1,352 | ||
| Refreshments and catering expenses | 357 | 357 | 4,995 | ||
| Travelling expenses | 276 | 276 | 335 | ||
| Council Tax | 1,982 | 1,982 | - | ||
| Cleaning | 3,691 | 3,691 | 2,457 | ||
| Telephone | 930 | 930 | 1,130 | ||
| Advertisements | - | - | 173 | ||
| Administration | 22,285 | 72 | 22,357 | 21,941 | |
| Independent examiner's report and | |||||
| accountancy fees | 5,508 | 5,508 | 5,361 | ||
| Bank charges | 506 | - | 506 | 446 | |
| Interest on loan account | - | 572 | 572 | 910 | |
| Legal and professional costs | 4,118 | - | 4,118 | 37,448 | |
| 179,380 | 34,289 | 213,669 | 212,248 | ||
| TOTAL RESOURCES USED | £ 179,380 | £ 34,289 | £ 213,669 | £ 212,337 |
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
4. TRUSTEES EMOLUMENTS AND STAFF COSTS
No emoluments were paid to Trustees during the year and there were no related party transactions with any Trustees.
Gross salaries paid in 2020 were £ 26,500 ( 2019 £ 25,625) and social security costs were £ 785 (2019 £ 785).
No employee received remuneration amounting to more than £60,000.
5. TANGIBLE FIXED ASSETS
| 5. | TANGIBLE FIXED ASSETS | ||
|---|---|---|---|
| 2020 | 2019 | ||
| Freehold property: (Church halls) | |||
| Deemed cost: | |||
| Balance at 1 January 2020 | 4,354,324 | 4,243,970 | |
| Surplus on revaluation | - | 110,354 | |
| At 31 December 2020 | £ 4,354,324 | £4,354,324 | |
| 6. | DEBTORS | ||
| 2020 | 2019 | ||
| Income tax recoverable | £ 8,600 | £ 6,938 | |
| 7. | LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
| 2020 | 2019 | ||
| Sundry creditors/ accruals | 4,559 | 4,448 | |
| Other creditors/loans | |||
| London Diocesan Fund | 35,000 | 40,000 | |
| £ 39,559 | £ 44,448 |
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3'1 DECEMBER 2020
8. FUNDS
| Fund movements: | |||
|---|---|---|---|
| Church Restoration Fund | |||
| (Restricted Fund) | |||
| 2020 | 2019 | ||
| Balance at 1 January 2020 | (72,696) | (111,750) | |
| Incoming resources | 16,696 | 41,430 | |
| Resources expended | (34,289) | (2,376) | |
| Balance at 31 December 2020 | £ (90,289) | £ (72,696) | |
| Analysis of net assets bv fund: | |||
| Unrestricted | Restricted | Total | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Tangible fixed assets (Freehold property) | 4,354,324 | - | 4,354,324 |
| Current assets | 17,948 | 2,211 | 20,159 |
| Liabilities: | |||
| Due within one year - Diocesan and other loan | - | (35,000) | (35,000) |
| Loan from unrestricted fund account | |||
| to restricted fund account re 2005 | |||
| church restoration commitment | 57,500 | (57,500) | - |
| Fund balances | £ 4,429,772 | £ (90,289) | £4,339,483 |
INDEPENDENT EXAMINER'S REPORT TO THE PAROCHIAL CHURCH COUNCIL OF
THE PARISH CHURCH OF ST CUTHBERT WITH ST MATTHIAS
Registered Charity Number 1182543
This report on the accounts of the PCC for the year ended 31 December 2020, which are set out on pages 6 to 13, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 ("the Regulations") and s.145 of the Charities Act 2011 ("the 2011 Act").
Respective responsibilities of trustees and examiner
As members of the PCC you are responsible for the preparation of the accounts; you consider that the audit requirement of the Regulations and section 144(2) of the 2011 Act does not apply and that an independent examination is needed.
It is my responsibility to: examine the accounts under section 145 of the 2011 Act, and the Regulations; to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act; and
to state whether particular matters have come to my attention.
Basis of this report
My examination was carried out in accordance with the General Directions given by the Charity Commission to be found in the Church guidance 2006 edition. That examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.
Independent examiner's statement:
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in airy material respect the requirements to keep accounting records in accordance with section 130 of the 2011 Act; and to prepare accounts which accord with the accounting records and to comply with the requirements of the Act and the Regulations have not been met; or
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2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
M B Boydell FCA Boydell & Co
Chartered Accountants 146B Chiswick High Road London W4 2PU