# **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:
- 9am Prayer Book Holy Communion in Church every Sunday
- 10.30am Common Worship Communion (1st Sunday) in Church
- Family Service (3rd Sunday) in Church
- Informal Service (4th Sunday) in Church Hall
- United Holy Communion in one of the Cluster Churches (5th Sunday)
- 5 pm Well@5 (Café-style worship) in the Social Club (2nd Sunday)
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.
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## **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|
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## **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**|
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## **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
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**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.
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**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|
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**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.
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## **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