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2020-12-31-accounts

ST MARGARET’S HORSMONDEN

PAROCHIAL CHURCH COUNCIL

Report and Accounts for the Year Ended 31 December 2020

ST MARGARET'S HORSMONDEN PCC

Report of the PCC for the year ended 31 December 2020

Status and Administration

St Margaret's Horsmonden Parochial Church Council was registered with the Charity Commission in England & Wales during 2020 under the charity registration number 1188677 and in accordance with the Parochial Church Council Powers Measure (1956) as amended and the Church Representation Rules that came into effect on 2 January 1956.

Charitable Objects

Promoting in the Ecclesiastical Parish of Horsmonden, the whole mission of the Church.

Officers & Key Management Personnel

The Revds Tim and Trish ffrench (Incumbents) Dennis Asplin (Warden) Steve Jones (Warden) Robin Black (Treasurer) Valerie Holloway (from 12 October 2020) Sue Huzzey (from 12 October 2020) Angie Jenkins David Jolley (Resigned 7 October 2020) Erica Jones Sara Kovach-Clark (Resigned 7 October 2020) Roger Marsh

Kate Hart-Dyke (Administrator) Jan Cobley (PCC Secretary) Nick Gerard-Pearse (Chairman, Building Committee)

Representatives on the Deanery Synod

Sara Kovach-Clark (Resigned 7 October 2020) Erica Jones (from 12 October 2020)

Independent Examiner

Martin Cobley

Quinquennial Inspector & Building Consultant

John Bailey, Thomas Ford & Partners Ltd

Trustees' Statement

With the arrival of the COVID-19 pandemic in the United Kingdom and the UK Government’s instruction that all places of worship should close their buildings and facilities in late March, 2020 has been a year unlike any other. The inability for us to gather as a community in St Margaret's and the Church Hall for much of the year has been much regretted by all, but the Trustees have taken appropriate steps to ensure the continued provision of religious services and support to our community through extensive use of on-line digital means. We are delighted that the PCC has received excellent feedback on this provision and we continued to make use of the systems developed to support our community in the second lockdown in November and December 2020.

Attendance

The PCC met 9 times during the year, 4 of these being by Zoom. The average attendance was 75%, though it should be noted that one of the members is unable to do Zoom meetings and Revd Trish ffrench rarely attends at the same time as Revd Tim ffrench as they ‘job-share’. The Annual Parochial Church Meeting was delayed until October because of COVID restrictions.

A meeting to which all church members were invited was held on 1[st] February to plan a vision for the future, under the title “Called to Grow”. We are grateful to Mr. Graham Wilkinson, Archdeaconry Growth Enabler, who facilitated this meeting. The process should have continued with small group meetings to develop particular aspects of the vision, but this has been delayed by the onset of COVID restrictions.

1

Forms of Worship

For the first three months of the year our normal pattern of services continued:

In addition, Morning Prayer was held in the Rectory at 9am on Tuesdays, Wednesdays and Thursdays.

However, everything changed in March: services in Church were not allowed during the first lockdown, from the end of March to the beginning of July, but we were able to hold one service each Sunday there from July until mid-December. Of course, services in Church were far from normal, with no singing allowed, social distancing, wearing masks, and bread only for Communion. In December the PCC judged that it was not safe to continue due to the alarming rise in COVID case numbers in our area, and with the Bishop’s dispensation, services were again suspended.

From the start of the lockdown we have been adapting and finding new ways of doing things, most obviously in holding worship services online with live videos on the St. Margaret’s Facebook page. Almost every Sunday since April there has been online Morning Worship from the Rectory, and Morning Prayer on Tuesday, Wednesday and Thursday most weeks. It is difficult to estimate the numbers taking part, but the number of ‘views’ on Facebook has been encouraging, averaging over 100 for Sunday services, often over 200 for festival services and 30 or more for weekday prayers. Because of this we expect online services are here to stay, though we are planning to connect the Church building to the internet so that we can live stream services from there. There have been surprisingly few funerals in the year and only one wedding, with others being postponed.

Pastoral Support

With many people confined to their homes most of the time, we needed to find new ways of providing pastoral support. At the start of the lockdown, a ‘Telephone Buddies’ scheme was set up, whereby volunteers from the church committed to speak by phone each day to anyone from the village asking for this contact. In practice the take-up on this scheme was very limited. We also put all our church members and regular attendees into pastoral groups of 5-6 families each, to provide mutual support and contact by phone, WhatsApp or email. The Church Hall was used as a storage facility to support the Village Foodbank.

Youth and Children’s Work

Sadly, we have not been able to have any face-to-face meetings for children and youth since March, apart from one meeting of Woodland Church in October and two or three Family Services in Church during the summer. All ministry in the school has stopped (Assemblies, Open the Book, Quest Club). Playtime, Well@5 and Youth Drop-in have not met. As a result, Mike King, our part-time Youth Worker, was put on furlough; and at the end of the year, he decided to move away and seek work elsewhere. We are sad to lose him and grateful for all he has done in the last few years.

There has been good progress with the Community Garden, in preparation for its formal opening by our local MP, planned for June 2021. Our Community Worker, Hilary Marshall, seconded from CMS, has been on furlough part of the year and has reduced her hours.

We have been trying to support families, especially while schools have been closed, by involving children in online services and sending out craft and activity sheets each week. We organised a Nativity Trail around the village before Christmas and encouraged people to display stars in their windows as a celebration of Christmas.

ECO Church

This is an important initiative for the future as both we and the wider world grapple with the impact of climate change and our impact upon the fragile environment. A new churchyard management plan, with a new contractor, has been implemented to encourage wildlife. We have switched energy suppliers and put a greater emphasis on environmental issues in our teaching. So, together with other improvements, we have achieved bronze award status.

2

Buildings

The PCC has debated and agreed plans to re-develop the Church building, including, inter alia, new kitchen and toilet facilities, and generally making it more useable for a range of activities by both the church community and the wider village. Our Architect, Mr. John Bailey, submitted a proposal to the Diocesan Advisory Committee in May. Written responses have been received from societies and consultative groups. We responded to their questions with a revised Statement of Need and Statement of Significance, but unfortunately the process is stalled waiting for a DAC site visit when that is allowed by COVID restrictions.

The 2021 Quinquennial will also be completed in 2021 and, depending upon both appropriate building consents and the recommendations of our new building consultant, it is anticipated that phased construction and refurbishment work should start alongside a fundraising campaign in late 2021 and early 2022. The Church Hall has been virtually unused since the various groups who normally meet there stopped meeting because of COVID restrictions. We are, however, delighted that it was used during the year for the village food bank.

Financial Review

Financially, COVID-19 has had a material negative impact upon the PCC's regular plate giving, lettings and fees from weddings. However, the generosity of our church community was demonstrated by an increase in direct giving through direct debits and other very generous individual donations. Despite no legacies being received in 2020 (2019: £12.9k), overall Income was encouraging at £96.8k (2019: £104.0k). However, it is noted that the majority of regular income is from a few very generous families and there is an urgent need to broaden the base of support in 2021 and future years.

On the cost front, the PCC has managed its cost base sensibly, reducing total expenditure by £4.7k to £78.1k (2019: £82.8k) despite an increase of 2% in the Parish Offer to £38.6k (2019: £37.9k) which represents our single largest expense at 49% (2019: 46%) of total expenditure. We will continue to support the Diocese in 2021 which will see a further increase in the Parish Offer of 2.9%; however, we have impressed upon the Diocese the need for it to reduce its cost base sensibly and make those decisions that are understandably difficult to make.

The resultant surplus of £18.7k (2019: £21.3k) is therefore highly encouraging in very difficult circumstances. Cash balances have strengthened over the course of the year to £77.3k (2019: £66.3k) but it should be noted that £5.1k of those funds are held in restricted funds and relate to affiliated organisations to the PCC. Shortterm cash deposits of £34.1k (2019: £28.4k) are held in the Diocesan Church Repair Fund which will be utilised for the repair and maintenance of St Margaret's once the recommendations and conclusions from the 2021 Quinquennial and our architect are agreed by the PCC.

Approved by the Parochial Church Council on 24 February 2021 and signed on its behalf by

Revd Tim ffrench Chairman

3

ST MARGARET'S HORSMONDEN PCC

ACCOUNTS FOR YEAR ENDED 31 DECEMBER 2020

4

PAROCHIAL CHURCH OF ST MARGARET'S HORSMONDEN

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2020

TOTAL TOTAL
Unrestricted Designated Restricted FUNDS FUNDS
Notes Funds Funds Funds 2020 2019
£ £ £ £ £
INCOME
Voluntary income 2a 81,276 50 6,454 87,780 87,973
Activities for generating funds 2b 984 1,740 2,724 5,068
Deposit interest 2c 94 94 77
Church activities 2d 6,168 6,168 10,921
Other income 2e 0 0
Total Income 88,428 144 8,194 96,766 104,039
EXPENDITURE
Church activities 3a 70,068 6,180 1,809 78,057 82,768
Raising funds 3b 0 0
Total Expenditure 70,068 6,180 1,809 78,057 82,768
Net income/(expenditure) 18,360 (6,036) 6,385 18,710 21,271
Transfers between funds (5,600) 5,600 0 0
Net movement in funds 12,760 (436) 6,385 18,710 21,271
Total funds b/fwd at 1 January 2020 33,656 130,195 6,622 170,473 149,202
Total funds c/fwd at 31 December 2020 46,416 129,759 13,007 189,182 170,473

5

PAROCHIAL CHURCH OF ST MARGARET'S HORSMONDEN

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2019 for comparative purposes

TOTAL
Unrestricted Designated Restricted FUNDS
Notes Funds Funds Funds 2019
£ £ £ £
INCOME
Voluntary income 2a 83,604 0 4,369 87,973
Activities for generating funds 2b 4,332 736 5,068
Deposit interest 2c 77 77
Church activities 2d 10,921 10,921
Other income 2e 0
Total Income 98,857 77 5,105 104,039
EXPENDITURE
Church activities 3a 79,477 1,839 1,453 82,768
Raising funds 3b 0
Total Expenditure 79,477 1,839 1,453 82,768
Net income/(expenditure) 19,379 (1,762) 3,652 21,271
Transfers between funds (5,600) 5,600
Net movement in funds 13,779 3,838 3,652 21,271
Total funds b/fwd at 1 January 2019 19,875 126,357 2,970 149,202
Total funds c/fwd at 31 December 2019 33,655 130,195 6,622 170,473

6

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

BALANCE SHEET as at 31 December 2020

Notes
FIXED ASSETS
Tangible fixed assets
5
Total Fixed Assets
CURRENT ASSETS
Debtors
7
Short term deposits
Cash at bank and in hand
Total Current Assets
LIABILITIES
Creditors - amounts falling due within 1 year
8a
NET ASSETS
PARISH FUNDS
Unrestricted
9, 10
Designated
9, 10
Other Restricted Funds
9, 10
TOTAL FUNDS		 3,538
34,084
77,318		 2020
£
75,000		 2019
£

75,000
75,000



114,940
(758)
75,000
3,168
28,389
66,315

97,873

(2,400)
189,182
170,473
46,416
129,759
13,007
33,656

130,195

6,622
189,182
170,473

Approved by the Parochial Church Council on 24 February 2021 and signed on its behalf by

Revd Tim ffrench Chairman

7

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared under the current Church Accounting Regulations and comply with the current Charities SORP and applicable accounting standard FRS 102.

a INCOME

Recognition of Income

This is included in the Statement of Financial Activities (SOFA) when the PCC becomes legally entitled to the benefit of use of the income, the benefit is quantifiable and probable.

Fundraising costs

Funds raised from events (eg Christmas Fair, Art Exhibition and bookstall sales are reported gross in the SOFA ie before any related costs have been deducted from the gross proceeds.

Grants and donations

These are included in the SOFA when any preconditions preventing their use by the PCC have been met. For collections and planned giving, this is when the funds are received.

Gift Aid Tax claims etc on cash donations

These are in included in the SOFA at the same time as the cash donations to which they relate.

Volunteer help

The value of any voluntary help received is not included in the Accounts but is described in the Trustees' Annual Report.

Church hall rental

This is recognised when received.

Investment income

The interest entitlement on the church repair fund is recognised when received.

b EXPENDITURE AND LIABILITIES

Liability Recognition

Liabilities are recognised as soon as there is a legal or constructive obligation and settlement is probable and quantifiable.

Grants

These are recognised in the accounts when a commitment has been made externally and there are no preconditions still to be met for entitlement to the grant that remain within the control of the PCC.

c ASSETS

Consecrated and benefice property

In so far as consecrated and benefice 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.

Moveable church furnishings

These are capitalised at cost and depreciated over their useful economic life other than where insufficient cost information is available. In this case, the item is not capitalised but all items are included in the church's inventory in any case.

8

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

ASSETS (continued)

Depreciation

No depreciation is provided on the church hall as the currently estimated residual value is not less than it carrying value and the remaining useful life of the hall currently exceeds 50 years, so that any depreciation charge would be immaterial. An impairment review is carried out each year end and any resultant loss identified included in the expenditure for that year. There were no items in 2018 subect to depreication.

Short term deposits

Include cash held on deposit with the CCLA Church of England Funds.

d FUNDS

Unrestricted funds

These include the remaining income funds of the PCC that are available for spending on the general purposes of the PCC, including amounts designated by the PCC for fixed assets for its own use or for spending on a future project and that are therefore not included in its 'free reserves' as disclosed in the trustees' report.

Restricted funds

These are income funds that must be spent on restricted purposes and details of the funds held and restrictions provided are shown in the notes to the accounts.

9

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

2 INCOME

2
INCOME
a
Voluntary Income
Direct giving
GA envelopes
Income tax recoverable
Other donations
Collections at all services
Grants
Legacies
b
Activities for Generating Funds
Fundraising
c
Investment Income
Deposit interest
d
Income from Church Activities
Church hall lettings
Weddings, funerals and memorial fees
Parish News
e
Other Incoming Resources
Miscellaneous - Bank refund
TOTAL INCOME		 TOTAL
TOTAL
Unrestricted
Designated
Restricted
FUNDS
Unrestricted
Designated
Restricted
FUNDS
Funds
Funds
Funds
2020
Funds
Funds
Funds
2019
£
£
£
£
£
£
£
£
53,109
53,109
48,178
48,178
230
230
1,227
1,227
13,723
13,723
12,268
12,268
9,759
50
5,182
14,991
1,810
2,400
4,210
1,155
1,155
5,212
5,212
3,300
1,272
4,572
2,000
1,969
3,969
0
12,909
12,909
81,276
50
6,454
87,780
83,604
0
4,369
87,973
984
1,740
2,724
4,332
736
5,068
94
94
77
77
460
460
1,218
1,218
3,948
3,948
7,445
7,445
1,760
1,760
2,258
2,258
6,168
6,168
10,921
10,921
0
0
0
88,428
144
8,194
96,766
98,857
77
5,105
104,039

10

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

3 EXPENDITURE

3
EXPENDITURE
a
Church activities
Missionary and charitable giving:
Link Diocese
Ministry:
Parish Offer
Rector expenses
Rectory council tax/utilities
Other ministry
Church Running Expenses:
Utilities
Insurance
Repairs and maintenance
Churchyard maintenance
Toilet hire
Upkeep of services
Parish administrator
General administration
Church Hall Running Expenses:
Utilities
Insurance
Repairs and maintenance
Other expenditure:
Outreach/Youthworker
Refreshments
Miscellaneous
b
Raising funds
Stewardship costs
TOTAL EXPENDITURE		 TOTAL
TOTAL
Unrestricted
Designated
Restricted
FUNDS
Unrestricted
Designated
Restricted
FUNDS
Funds
Funds
Funds
2020
Funds
Funds
Funds
2019
£
£
£
£
£
£
£
£
0
100
100
0
0
38,584
38,584
37,905
37,905
1,039
1,039
1,635
1,635
3,459
3,459
2,975
2,975
54
54
575
575
1,604
1,604
612
612
4,943
4,943
4,796
4,796
589
6,180
834
7,603
2,802
1,839
4,641
4,499
974
5,473
5,458
1,453
6,910
240
240
540
540
2,492
2,492
2,805
2,805
3,402
3,402
6,284
6,284
2,009
2,009
1,665
1,665
401
401
1,040
1,040
0
260
260
504
504
2,078
2,078
6,212
6,212
7,161
7,161
37
37
787
787
0
0
70,068
6,180
1,809
78,057
79,476
1,839
1,453
82,768
0
0
70,068
6,180
1,809
78,057
79,476
1,839
1,453
82,768

11

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

4 STAFF COSTS

a Wages and Salaries

STAFF COSTS
Wages and Salaries 2020 2019
£ £
Parish Administrator 3,402 6,284

The PCC employs a part-time administrator but no payments were large enough to be subject to PAYE. The administrators did not receive any employee benefits in the previous or current years.

b Payments to PCC Members

No payments, other than reimbursement of expenses, were made to members of the PCC.

The total of donations made to the PCC by PCC members during 2020 was £28,365 (£23,675 2019).

5
TANGIBLE FIXED ASSETS
Freehold Land and Buildings - Valuation
Net book amounts
at 31 December 2020		 2020
2019
£
£
75,000
75,000
75,000
75,000

The freehold land and buildings comprise the Church Hall and the value represents the valuation by Smiths Gore in November 2013. This is now treated as the deemed cost.

6 INVESTMENTS

The PCC does not currently hold any investment assets.

12

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020 (continued)

7 CURRENT ASSETS

7
CURRENT ASSETS
Debtors
Income tax recoverable
Miscellaneous
8
LIABILITIES
a
Creditors
Amounts falling due within one year:
General Creditors
9
FUNDS
Analysis of Net Assets by Fund
Fixed assets for church use
Current assets
Current liabilities
Long term liabilities		 TOTAL
TOTAL
Unrestricted
Designated
Restricted
FUNDS
Unrestricted
Designated
Restricted
FUNDS
Funds
Funds
Funds
2020
Funds
Funds
Funds
2019
£
£
£
£
£
£
£
£
3,038
3,038
3,168
3,168
500
3,538
0
3,038
3,168
0
3,168
200
558
758
2,310
90
2,400
0
0
0
0
0
0
200
558
758
2,310
90
2,400
75,000
75,000
75,000
75,000
46,616
54,759
13,565
114,940
35,966
55,195
6,712
97,873
(200)
(558)
(758)
(2,310)
(90)
(2,400)
46,416
129,759
13,007
189,182
33,656
130,195
6,622
170,473

Restricted Funds

These funds are to be used for the maintenance, upkeep, refurbishment or development of the property in accordance with the terms specified by the donor.

They comprise:

(a) Church Fund for the Austen window repair (£455), Annex (£1,265), Path (£1,200) gate repair (£50) and New Project (£4,880);

(b) Community Garden Fund, with a grant from the Parish Council

(c) Memorial Garden Fund for monies received towards this project

(d) Woodland/HYA Fund for monies recived towards this project.

13

PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 (continued)

10 STATEMENT OF FUNDS

Unrestricted Funds
General Fund
Designated Funds
Fabric Fund
Church Hall Property Fund
Restricted Funds
Church Fund
Community Garden
Memorial Garden
Woodland/HYA
Total Funds		 Balance
Transfers,
Balance
b/fwd
other gains
c/fwd
1 Jan 2020
Income
Expenditure
and losses
31 Dec 2020
£
£
£
£
£
33,656
88,428
(70,068)
(5,600)
46,416
33,656
88,428
(70,068)
(5,600)
46,416
55,195
144
(6,180)
5,600
54,759
75,000
0
0
0
75,000
130,195
144
(6,180)
5,600
129,759
2,970
4,880
0
0
7,850
1,298
930
(974)
0
1,254
1,838
230
0
0
2,068
517
2,154
(834)
0
1,836
6,622
8,194
(1,809)
0
13,007
170,473
96,766
(78,057)
0
189,182

Reserves Policy

It is PCC policy to maintain a balance on liquid unrestricted funds (if possible) which equates to approximately 3 months' unrestricted payments, to cover emergency situations. The current balance on 'liquid' unrestricted funds at the year end, equates to approximately 13 months' of unrestricted payments

14