Trustees’ Annual Report for the period
From 1[st] January 2021 to 31[st] December 2021
Charity name: THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MAGDALENE CHURCH, TORQUAY
Charity registration number: 1188333
Objectives and Activities
The Parochial Church Council (PCC) of St. Mary Magdalene, and the team clergy, work to promote the worship, mission and ministry Christ in the parish of Upton, Torquay, within the diocese of Exeter.
The PCC is also specifically responsible for the maintenance of the Church Hall, within the grounds of St Mary Magdalene.
St. Mags exists to proclaim in words and deeds Life to the Full through Jesus Christ.
As well as Sunday services and occasional offices, St Mags runs
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The Living Room Community Café
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The Playroom for parents with pre-school children
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Voyagers children’s ministry on Sunday mornings.
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Schools’ ministry in two church schools.
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Active engagement with the social issues in the town centre.
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Opportunities to grow in faith and friendship through a variety of events.
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Creative and cultural events.
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We work ecumenically with other local churches and the clergy take an active role in the life of the Anglican chapter.
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We also hire out the church hall throughout the week to a wide variety of community groups, parties, including the Prince’s Trust.
To enable all this to happen the Incumbant works closely with the curate, two part time, paid staff; the Operations Administrator and the Living Room Pastor, and a large voluntary leadership team. The doors of St Mags are open to all, including / especially the most marginalised and fractured.
The PCC trustees understand their important role in the governance of the church and charity.
Achievements and Performance
Through the activities listed above we see lives changed as people come to faith in Christ and are supported in the community of faith. The church cares for people in body, mind and spirit.
Through lockdowns and other changes due to Covid, we continued to broaden the reach of St Mags and welcomed new people into the church both online and in person.
Through the work of living room and wider church we support many people in recovery from addiction, mental health crisis and trauma.
We have worked hard to diversify the funding streams of St Mags and were awarded a Culture Recovery Grant from the government.
Over the course of lockdown, we also completed a multi-streamed Inspire project where we not only repaired essential stonework repairs, but also rolled out a programme of cultural, arts and community events which, both online and in person, attracted thousands of people.
Over this year we have further cemented the church as an appreciated and professional hub within the wider life of Torbay, and broadened the demographic appeal of the church.
The PCC are deeply grateful to well over 100 volunteers who have pulled together under extraordinary circumstances to demonstrate the love of God in these challenging days.
Financial Review
Charities reserves policy:
It is PCC policy to try to maintain a balance on free reserves (net current assets) which equates to at least three months unrestricted payments. This is equivalent to £30,000. It is held to smooth out fluctuations in cash flow and to meet emergencies. The balance of the free reserves at the year-end was £29,431, which fell slightly below this
A description of the principal risks facing the charity:
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A major unexpected demand on building maintenance could put the viability of the Charity at risk.
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Running deficit
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Effects of COVID on congregation finances, which in turn affects the funding received by the church
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Small staff team resulting in increased risk of fraud
Structure, Governance and Management
The PCC is a Body Corporate established by the Church of England (PCC Powers Measure 1956, and the Church Representation Rules 2006) and is a Charity registered with the Charity Commission. The PCC is governed by the Parochial Church Council Powers Measure (1956) as amended that came into effect on 2[nd] January 1957, and the Church Representation Rules [CRR] (2020).
The method of appointment of the PCC members is set out in the CRR. The Council comprises the Incumbent, the Churchwardens, those elected to the Deanery Synod, and other members who are elected at the Annual Parochial Church Meeting, by those on the Electoral Roll. The PCC members receive training as required from courses run by the Diocese. Members of the congregation are always urged to join the Electoral Roll, and to stand for election to the PCC.
The PCC members are responsible for making decisions on all matters of general concern and importance in the parish, and for all financial matters. The PCC meet 6 times a year. Given its responsibilities, the PCC has a number of sub committees, each dealing with a particular aspect of parish life.
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The Leadership team which meets twice monthly.
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The Buildings advisory Group. (BAG) – termly.
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The Living Room Action Group (LRAG) - monthly
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The Playroom Development Group (PRDG) – half termly.
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Each reports back to the PCC with the minutes of their meetings.
Reference and Administrative details
| Charity name | THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MARY MAGDALENE CHURCH, TORQUAY |
|---|---|
| Other name the charity uses | St Mags |
| Registered charity number | 1188333 |
| Charity’s principal address | ST. MARY MAGDALENE PARISH CHURCH CHURCH HALL UNION STREET TORQUAY TQ1 4BX |
| Phone | 01803211868 |
| office@stmarymagdalene.org.uk | |
| Website | https://stmags.org.uk |
PCC members who have served from 1[st] January 2021 until the date this report was approved were:
| 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 |
Trustee name | Office (if any) | Dates acted if not for whole year |
|---|---|---|---|
| Sam Leach | Vicar | ||
| Emma Dornan | Ex-Officio | ||
| Ed Williams | 2019 – Church Warden | ||
| Sam Upham | 2020 – Church Warden | ||
| Aidan McNulty | 2019 – (Assistant) Church Warden | ||
| Robin Hart | (Assistant) Church Warden | ||
| Virginia Hamilton | Ex-Officio Deanery Synod - 2020 | ||
| Katherine Smith | Ex-Officio Deanery Synod - 2020 | ||
| Edwina Corderoy | Ex-Officio Deanery Synod - 2020 | ||
| Chris Daniels | Treasurer. Co-opted annually | ||
| Claire Clarke | Re-Elected 2020 | ||
| Petrina Jones | Elected 2018 | ||
| Kev Wilson | Elected 2019 | ||
| Pauline Marr | Re-Elected 2020 | ||
| Stella Williams | Re-Elected 2020 | ||
| Joy Payne | Re-Elected 2020 | ||
| Nick Ford | Elected 2020 | ||
| Jane Badcock | Elected 2020 | ||
| Sue Cooper | Elected 2020 | ||
| Ray Croughan | Elected 2020 | ||
| Rose Butt | Elected 2020 | ||
| Katie Sale | Elected 2020 |
Co-opted members who have served from 1[st] January 2021 until the date this report was approved were:
| Name | Organisation | Dates acted if not for wholeyear | |
|---|---|---|---|
| 1 | Ali Ford | Inspire | |
Declarations
The trustees declare that they have approved the trustees’ report above.
Signed on behalf of the charity’s trustees
Signature(s) Full name(s) Chris Daniels Position (eg Secretary, Treasurer Chair, etc) Date 31/10/2022
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December
2021
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
Financial Review
We started 2021, with huge spikes in COVID numbers and a third national lockdown announced shortly after. This meant another dip in offertory and church premises income, including hall hire. Fortunately the church was still being supported by the Culture Recovery Fund from the previous year during this period, which helped support with the wages costs and costs associated with relaunching the church in these early months.
This third lockdown, alongside a more public push to promote the Parish Giving Scheme, resulted in a significant change in how the church is supported by the congregation, with many individuals switching their offertory donations for regular giving, particularly through the Parish Giving Scheme. As a measure of growth, in December 20 we received £160 per month through the PGS, but fast forward to December 21 and we were in receipt of over £2,300 per month and this has continued to grow since. This change from irregular to regular giving has really helped the church to navigate what has been a really challenging year and the monthly gift aid claim through the PGS has been invaluable.
Unfortunately, even with the huge drive on income and the incredible generosity of the congregation, I had the horrible job of informing the PCC in September that the church was still financially declining by over £1,000 per month. In October I requested support from the PCC to start looking at grants in order to help alleviate this, whilst also requesting a pause on all non-essential expenditure. In November we were then forced to reduce our common fund payment from 75% to 50% in order to make it through the winter. At the start of February 2022, the suspected reason for the continued decline of the church funds came to light so you will notice in the below accounts we are recognising £14,586 of suspected fraud as an asset in our statement of financial position, in the hopes that this may be recoverable in the future.
Every suspected fraudulent transaction has been removed from the statement of financial activity, so as to allow a fair comparison to previous years. Therefore, excluding the suspected fraud, we had a deficit of £6,268 in our unrestricted funds (reduced from a deficit of £18,352 in 2020). This deficit grows to £8,758 when you take into account the movement in restricted and designated funds (a reduction from a deficit of £14,169 in 2020). So although 2021 is still showing a deficit, it shows significant movement in the right direction from 2020.
These movements above take the church down from a total equity position of £76,734 in 2020 to £67,976 in 2021 (£35,699 unrestricted in 2020 to £29,431 in 2021) as shown in the statement of financial position.
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021 Notes to the Financial Statements for the year ended 31st December 2021
1. ACCOUNTING POLICIES
The Financial Statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable standards and the Charities SORP (FRS 102).
The Financial Statements have been prepared under the historical cost convention, except for investment assets which are shown at market value. The Accounts include all the transactions, assets and liabilities for which the PCC is responsible in law. They do not include accounts of church groups that owe their affiliation to another body, nor those that are informal gatherings of church members.
Fund Accounting
Unrestricted funds are income funds which are to be spent on the PCC’s general purposes.
Restricted funds comprise (a) income from endowments which is to be expended 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 these funds have unspent balances, interest on their pooled investment is apportioned to the individual funds on an average balance basis.
Designated funds are general funds set aside by the PCC for use in the future. Project funds are designated for particular projects for administration purposes only. Funds designated as invested in fixed assets for the PCC’s own use abated in line with assets’ annual depreciation charges in the Statement of Financial Activity. Designated funds remain unrestricted and the PCC will move any surplus to other general funds.
Endowment funds are funds, the capital of which must be retained either permanently or at the PCC’s discretion; the income derived from the endowment is to be used either as a restricted or unrestricted income funds depending upon the purpose for which the endowment was established in the first place.
Income
Planned giving, collections and similar donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is received. Grants and legacies are accounted for when the PCC is entitled to the use of the resources, their ultimate receipt is considered reasonably certain and the amounts due are reliably quantifiable. Dividends are accounted for when declared receivable, interest as and when accrued by the payer. All incoming resources are accounted for gross.
Expenditure
Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. The diocese parish share expected to be paid over is accounted for when due. All other expenditure is generally recognised when it is incurred and is accounted for gross.
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
Fixed assets
Consecrated and benefice property is not included in the accounts in accordance with s.10(2)(a) and (c) of the Charities Act 2011.
Anything acquired prior to 2019 has been fully depreciated on purchase under cash basis accounting, and therefore such assets are not included in the financial statements.
Assets purchased from 2019 onwards will be depreciated at the following rates from the month of purchase:
Computer Equipment – 33% reducing balance
Fixtures and Fittings – 25% straight line
Motor Vehicles – 33% reducing balance
Investments are valued at market value on 31 December annually.
2. Tangible Assets
| Type | Cost B/Fwd |
Purc. | Disp. | Cost C/Fwd |
Acc. Dep B/Fwd |
Dep. | Acc. Dep C/Fwd |
Net Book Value B/Fwd |
Net Book Value C/Fwd |
|---|---|---|---|---|---|---|---|---|---|
| AV and computer equipment |
£6,834 | £1,193 | £- | £8,027 | £2,690 | £1,623 | £4,313 | £4,144 | £3,714 |
| Fixtures and fittings |
£794 | £3,707 | £- | £4,501 | £299 | £754 | £1,053 | £495 | £3,448 |
| Motor vehicles |
£3,500 | £- | £- | £3,500 | £1,231 | £756 | £1,987 | £2,269 | £1,513 |
| Total | £11,128 | £4,900 | £- | £16,028 | £4,220 | £3,133 | £7,353 | £6,908 | £8,675 |
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021 3. Fund Analysis
a. Restricted
| Fund Name | Fund Name | Opening bal. |
Opening bal. |
Income | Income | Expenditure | Transfer | Closing bal. |
Committed (see Note 5) |
Adjusted Closing bal. |
|---|---|---|---|---|---|---|---|---|---|---|
| The Play Room |
£287.35 | £321.33 | £581.51 | £- | £27.17 | £- | £27.17 | |||
| CBF Deposit Fund |
£3,227.68 | -£108.82 | £- | £- | £3,118.86 | £- | £3,118.86 | |||
| FACE | £2,390.50 | £37.50 | £- | £- | £2,428.00 | £- | £2,428.00 | |||
| Living Room Mayor’s Fund – laptops |
£203.04 | £- | £- | £- | £203.04 | £- | £203.04 | |||
| LivingRoom | £- | £4,610.23 | £16,173.60 | £11,930.86 | £367.49 | £367.49 | £- | |||
| Coronavirus Fund |
£567.40 | £- | £- | £- | £567.40 | £- | £567.40 | |||
| Pew Bibles | £378.00 | £- | £340.00 | £- | £38.00 | £- | £38.00 | |||
| Play Room Leader |
£1,328.90 | £- | £- | £- | £1,328.90 | £- | £1,328.90 | |||
| £500 Torbay Council Grant |
£163.00 | £- | £- | £- | £163.00 | £- | £163.00 | |||
| Essential Plasterwork for Kitchen (Ladder Climb) |
£5,969.79 | £- | £1,006.95 | £- | £4,962.84 | £- | £4,962.84 | |||
| Culture Recovery Fund |
£883.52 | £6,900.00 | £7,166.41 | £46.94 | £664.05 | £664.05 | £- | |||
| Celebrate Recovery |
£- | £5,847.50 | £2,700.23 | £- | £3,147.27 | £- | £3,147.27 | |||
| Williams Gift |
£- | £1,832.66 | £1,832.66 | £- | £- | £- | £- | |||
| J Badcott Gift |
£- | £765.00 | £765.00 | £- | £- | £- | £- | |||
| Total | £15,399.18 | £20,205.40 | £30,566.36 | £11,977.80 | £17,016.02 | £1,031.54 | £15,984.48 | |||
| b. Designated | ||||||||||
| Fund Name |
Opening bal. |
Income | Expenditure | Transfer | Closing bal. | Committed (See Note 5) |
Adjusted Closing bal. |
|||
| Inspire | £25,635.66 | £18,736.30 | £22,842.95 | £- | £21,529.01 | £1,932.28 | £19,596.73 | |||
| Van | £- | £1,665.00 | £3,064.87 | £1,399.87 | £- | £- | £- | |||
| Total | £25,635.66 | £20,401.30 | £25,907.82 | £1,399.87 | £21,529.01 | £1,932.28 | £19,596.73 |
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
4. Transfers between funds
The Living Room restricted fund was topped up from the unrestricted funds at the end of each month.
The Culture Recovery fund was topped up from the unrestricted funds to cover a small overspend. The Van designated fund was topped up from the unrestricted funds at the end of each month.
5. Analysis of Net Assets by Fund
| Type | Cost B/Fwd |
Purc. | Disp. | Cost C/Fwd |
Acc. Dep B/Fwd |
Dep. | Acc. Dep C/Fwd |
Net Book Value B/Fwd |
Net Book Value C/Fwd |
|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | |||||||||
| Restricted – LivingRoom |
£- | £419.99 | £- | £419.99 | £- | £52.50 | £52.50 | £- | £367.49 |
| Restricted – Culture Recovery |
£- | £838.80 | £- | £838.80 | £- | £174.75 | £174.75 | £- | £664.05 |
| Designated – Inspire |
£- | £2,204.80 | £- | £2,204.80 | £- | £272.52 | £272.52 | £- | £1932.28 |
| Total | £- | £3,463.59 | £- | £3,463.59 | £- | £499.77 | £499.77 | £- | £2,963.82 |
The Net Book Value C/Fwd is the committed amount shown in Note 3, the Fund Analysis. These funds are committed to the future depreciation of the assets purchased within these restricted and designated funds.
6. Staff costs
Average number of employees was 2 for 2021 (2020: 2).
No employee received emoluments in excess of £60,000 during the year (2020 nil)
7. Transactions with Trustees
During 2021, the PCC received £13,788.83 in donations from trustees (PCC members) and their close relatives. The donors did not attach any conditions to their gifts which required the charity (PCC) to significantly alter the nature of its existing activities.
Both of the employees in 2021 were also trustees of the charity and in 2021 they received remuneration of £24,261.60 and had expense claims of £257.91 for mobile costs, mileage and travel costs.
Other transactions with trustees included:
- £360 paid to WebBoss for website hosting fees. WebBoss is a company owned by trustee Kevin Wilson.
The Parochial Church Council of the Ecclesiastical Parish of St Mary Magdalene Church, Torquay
Registration Number: 1188333
Annual report of the Parochial Church Council for the Year Ended 31[st] December 2021
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A total of £1,832.66 was donated from various members of the congregation as a fundraiser for the Williams family, which includes Ed Williams and Stella Williams who are both trustees of the charity.
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£765 was donated from a private individual to Jane Badcott, a trustee of the charity.
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Various expenses have been reimbursed to trustees where the trustees have purchased items personally on behalf of the church. These expenses have always been reimbursed at cost so no further disclosure is required.
Independent Examiner’s report to the members of the Parochial Church Council (‘The Trustees’) of St Mary Magdalene Church, Upton, Torquay
I report to the trustees on my examination of the accounts of the Parochial Church Council of St Mary Magdalene Church, Upton, Torquay (the ‘Trust’) for the year ended 31[st] December 2021.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust’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:
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Accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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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:
29 July 2022
Mark Gardener, BSc (Hons), CIOT Director Trinity Tax Services Limited 8 Manor Drive Kingskerswell Newton Abbot TQ12 5HB