APPENDIX 1
ST MARGARET’S HORSMONDEN
PAROCHIAL CHURCH COUNCIL
Report and Accounts for the Year Ended 31 December 2021
ST MARGARET'S HORSMONDEN PCC
Report of the PCC for the year ended 31 December 2021
Status and Administration
St Margaret's Horsmonden Parochial Church Council is registered with the Charity Commission in England & Wales 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 & Treasurer from 12 May 2021) Robin Black (Treasurer) resigned 12 May 2021 Valerie Holloway Sue Huzzey Angie Jenkins Erica Jones Roger Marsh Bob Norton (co-opted from 9 June 2021)
Kate Hart-Dyke (Administrator until September) Miranda Hungerford (Administrator from September) Jan Cobley (PCC Secretary)
Nick Gerard-Pearse (Chairman, Building Committee)
Representatives on the Deanery Synod
Erica Jones
Independent Examiner
Martin Cobley
Quinquennial Inspector & Building Consultant
John Bailey, Thomas Ford & Partners Ltd
Trustees' Statement
With the continuation of the Covid pandemic in the United Kingdom it has been another challenging year, operating under UK Government restrictions and guidance from the Church of England. The inability for us to gather as a community in St Margaret's and the Church Hall for much of the year has again 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.
The PCC met 9 times during the year, with average attendance of 85%. If Revd Trish ffrench is excused as ‘job-sharing’ with Revd Tim ffrench, and Valerie Holloway is excused as she is unable to participate in Zoom meetings, then the attendance rises to 94%.
The Annual Parochial Church Meeting was held on 12th May 2021.
During the year, a Vision and Strategy sub-committee was set up to plan for our growth and development over the next 3 to 5 years, with particular reference to our planned link with Lamberhurst when the present incumbents retire.
Patterns of Worship
When the year started there were no services in church due to Covid lock-down rules, but we provided an online service on the St. Margaret’s Facebook page most Sundays. Services in church re-started on 21st March at 9.30am, with the online service from the Rectory moving to 10.45am. To accommodate different
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styles of worship, the united service in church was Prayer Book Holy Communion on the first and third Sundays of the month, Family Service on the second Sunday and Informal Worship on the fourth. Attendance in church has gradually picked up from around 25 to the high 30s. Covid restrictions (wearing masks, social distancing, wafers only at Communion, and no singing) were gradually lifted until some were re-imposed in December due to the Omicron variant. Also for this reason, the larger Christmas services (Carols by Candlelight and the Midnight Communion) were cancelled, but the Crib Service and Christmas Day Communion went ahead.
Thanks to a generous donation, the church has been connected to fibre-optic broadband and there are plans to install a camera system linked to the sound system to enable live-streaming of services.
Pastoral Support
Throughout most of the pandemic, pastoral support has been provided through informal networks, in particular the ‘St M’s Catch-up’ WhatsApp group. The three Connect groups restarted during the autumn.
Youth and Children’s Ministry
During the pandemic, many of our Youth and Children’s activities had to stop, but the Family Service with activities resumed, with some restrictions, on the second Sunday of the month; Playtime (for parents and toddlers) operated in June, July and the autumn term; Woodland Connect re-started in October at a new time of 10.30am to 12.30pm on the first Sunday of the month; Well@5 did not meet, but is planned to restart with a new team leading it.
It looks likely that the Youth Drop-in will not be able to restart since our Youth Worker, Mike King, moved away during the pandemic and our Community worker, Hilary Marshall, has ended her secondment to us.
Good progress has been made on the Community Garden, with a good team running it, though unfortunately, because of the pandemic, the formal opening by Greg Clark MP has been postponed.
Buildings
Our plans for re-developing the church building were delayed by the pandemic as the Diocesan Advisory Council (DAC) were not able to come for a site visit until June, and their heavy workload meant we did not receive a response until September. However the response was broadly favourable, so our Architects (Thomas Ford & partners) are drawing up more detailed plans for the DAC and to submit for Local Authority planning permission.
John Bailey (of Thomas Ford) carried out the Quinquennial Inspection in February 2021. We were expecting that repairs would be needed on the tower, the internal timbers of the nave and chancel roofs, stained glass windows and some external stonework. However the work required is not as extensive as first thought. It is planned to start work on repairs to the tower shortly.
Financial Review
Income
Financially, Covid has continued to impact negatively on income with a lower corresponding reduction in costs as many of these are fixed. As we have been able to return to worshiping in church, the PCC agreed to recommence plate collections in services as we considered how best to approach Covid restrictions. We have also seen a continued growth in numbers giving by standing order, and an increasing percentage of giving has been eligible for gift aid claims.
Our income was also boosted by receiving the final distribution of a legacy amounting to £10,875, the first part of which was received in 2019. This helped actual income to exceed budget, but legacies are impossible to budget for and we will have to work hard to maintain income going forward.
Finally, with regard to income, in early December (a week or so ahead of concern over the Omicron variant) a Green Christmas Market was held in the Village Hall. This was a very positive and enjoyable event raising almost £2,500.
Expenditure
On the cost front, the PCC has managed its cost base sensibly, reducing total expenditure (where possible) by £1,651 to £68,417 despite an increase of 2.9% in the Parish Offer to £39,709 which represents our single largest expense at 58% of total expenditure. Due to a change in calculation methodology, it is anticipated that the Parish Offer will be slightly less in 2022 despite significant increases in inflation. The PCC is also pleased to report that our support for Christian based charities has been increased to £1,215, which includes donations to Medair, helped in part by donations from a frugal lunch, and to Release International.
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Surplus and Balances
The resultant surplus of £16,362 after transfer of £5,600 to the designated Church Repair Fund is highly encouraging in very difficult circumstances, and has seen the unrestricted reserves increase to £62,778 (2020 £46,416).
We also hold a number of restricted funds totalling £18,579. These funds consist of donations generously given by donors which can only be used for specific purposes, which include improvements to the church building, and other ministry purposes mentioned in the financial statements.
Finally, the plans to upgrade the church that are being developed with our Inspecting Architects, Thomas Ford & Partners, will require a significant fundraising commitment. Details of the plans will be communicated over the coming months, but the first phase in the project will be to repair the tower roof, timbers and some stonework as identified in the Quinquennial inspection carried out at the beginning of 2021. Costs for the tower work will come from a combination of the Church Repair Fund which, at year end, stood at £60,359, and grant applications to funds currently making donations for such work.
Approved by the Parochial Church Council on 10 April 2022 and signed on its behalf by
Revd Tim ffrench Chairman
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ST MARGARET'S HORSMONDEN PCC
ACCOUNTS FOR YEAR ENDED 31 DECEMBER 2021
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PAROCHIAL CHURCH OF ST MARGARET'S HORSMONDEN
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2021
| TOTAL | TOTAL | |||||
|---|---|---|---|---|---|---|
| Unrestricted | Designated | Restricted | FUNDS | FUNDS | ||
| Notes | Funds | Funds | Funds | 2021 | 2020 | |
| £ | £ | £ | £ | £ | ||
| INCOME | ||||||
| Voluntary income | 2a | 83,502 | 0 | 7,621 | 91,123 | 87,780 |
| Activities for generating funds | 2b | 2,513 | 194 | 2,706 | 2,724 | |
| Deposit interest | 2c | 64 | 64 | 94 | ||
| Church activities | 2d | 4,364 | 4,364 | 6,168 | ||
| Other income | 2e | 0 | 0 | |||
| Total Income | 90,379 | 64 | 7,814 | 98,257 | 96,766 | |
| EXPENDITURE | ||||||
| Church activities | 3a | 68,289 | 0 | 2,242 | 70,532 | 78,057 |
| Raising funds | 3b | 127 | 127 | 0 | ||
| Total Expenditure | 68,417 | 0 | 2,242 | 70,659 | 78,057 | |
| Net income/(expenditure) | 21,962 | 64 | 5,572 | 27,598 | 18,710 | |
| Transfers between funds | (5,600) | 5,600 | 0 | 0 | ||
| Net movement in funds | 16,362 | 5,664 | 5,572 | 27,598 | 18,710 | |
| Total funds b/fwd at 1 January 2021 | 46,416 | 129,759 | 13,007 | 189,182 | 170,473 | |
| Total funds c/fwd at 31 December 2021 | 62,778 | 135,423 | 18,579 | 216,781 | 189,182 |
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PAROCHIAL CHURCH OF ST MARGARET'S HORSMONDEN
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2020 for comparative purposes
| TOTAL | |||||
|---|---|---|---|---|---|
| Unrestricted | Designated | Restricted | FUNDS | ||
| Notes | Funds | Funds | Funds | 2020 | |
| £ | £ | £ | £ | ||
| INCOME | |||||
| Voluntary income | 2a | 81,276 | 50 | 6,454 | 87,780 |
| Activities for generating funds | 2b | 984 | 1,740 | 2,724 | |
| Deposit interest | 2c | 94 | 94 | ||
| Church activities | 2d | 6,168 | 6,168 | ||
| Other income | 2e | 0 | |||
| Total Income | 88,428 | 144 | 8,194 | 96,766 | |
| EXPENDITURE | |||||
| Church activities | 3a | 70,068 | 6,180 | 1,809 | 78,057 |
| Raising funds | 3b | 0 | |||
| Total Expenditure | 70,068 | 6,180 | 1,809 | 78,057 | |
| Net income/(expenditure) | 18,360 | (6,036) | 6,385 | 18,710 | |
| Transfers between funds | (5,600) | 5,600 | |||
| Net movement in funds | 12,760 | (436) | 6,385 | 18,710 | |
| Total funds b/fwd at 1 January 2020 | 33,656 | 130,195 | 6,622 | 170,473 | |
| Total funds c/fwd at 31 December 2020 | 46,416 | 129,759 | 13,007 | 189,182 |
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PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN
BALANCE SHEET as at 31 December 2021
| 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 |
5,040 39,748 97,905 |
2021 2020 £ £ 75,000 75,000 |
|---|---|---|
| 75,000 75,000 3,538 34,084 77,319 142,693 114,940 (912) (758) |
||
| 216,781 189,182 |
||
| 62,778 46,416 135,423 129,759 18,579 13,007 |
||
| 216,780 189,182 |
Approved by the Parochial Church Council on 10 April 2022 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 2021
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, i.e. 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 2021 (continued)
ASSETS (continued)
Depreciation
No depreciation is provided on the church hall as the currently estimated residual value is not less than its 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 the accounting period subect to depreciation.
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.
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PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)
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 TOTAL INCOME |
TOTAL TOTAL Unrestricted Designated Restricted FUNDS Unrestricted Designated Restricted FUNDS Funds Funds Funds 2021 Funds Funds Funds 2020 £ £ £ £ £ £ £ £ 54,264 54,264 53,109 53,109 0 0 230 230 14,641 14,641 13,723 13,723 2,408 7,121 9,529 9,759 50 5,182 14,991 1,314 1,314 1,155 1,155 500 500 3,300 1,272 4,572 10,875 10,875 0 |
|---|---|
| 83,502 0 7,621 91,123 81,276 0 6,454 87,780 |
|
| 2,513 194 2,706 984 1,740 2,724 |
|
| 64 64 94 94 |
|
| 100 100 460 460 4,264 4,264 3,948 3,948 0 1,760 1,760 |
|
| 4,364 4,364 6,168 6,168 |
|
| 0 0 0 |
|
| 90,379 64 7,814 98,257 88,428 94 8,194 96,766 |
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PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)
3 EXPENDITURE
| 3 EXPENDITURE |
|
|---|---|
| a Church activities Missionary and charitable giving: 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 Repairs and maintenance Other expenditure: Outreach/Youthworker Refreshments Miscellaneous b Raising funds Fundraising Costs TOTAL EXPENDITURE |
TOTAL TOTAL Unrestricted Designated Restricted FUNDS Unrestricted Designated Restricted FUNDS Funds Funds Funds 2021 Funds Funds Funds 2020 £ £ £ £ £ £ £ £ 1,215 1,215 0 0 39,709 39,709 38,584 38,584 1,128 1,128 1,039 1,039 3,494 3,494 3,459 3,459 810 810 54 54 424 424 1,604 1,604 4,860 4,860 4,943 4,943 2,562 1,230 3,792 589 6,180 834 7,603 5,760 1,012 6,772 4,499 974 5,473 60 60 240 240 1,769 1,769 2,492 2,492 3,080 3,080 3,402 3,402 1,537 1,537 2,009 2,009 864 864 401 401 481 481 504 504 325 325 6,212 6,212 112 112 37 37 100 100 0 |
| 68,289 0 2,242 70,532 70,068 6,180 1,809 78,057 |
|
| 127 127 0 |
|
| 68,417 0 2,242 70,659 70,068 6,180 1,809 78,057 |
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PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)
| 4 | STAFF COSTS | ||
|---|---|---|---|
| a | Wages and Salaries | TOTAL | TOTAL |
| FUNDS | FUNDS | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Parish Administrator | 0 | 3,402 |
The PCC shares a part-time administrator with Lamberhurst PCC, who are the employer and make all the PAYE deductions required.
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 2021 was £44,462 (£28,365 2020).
5 TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | |
|---|---|
| Valuation Net book amounts at 31 December 2021 |
Freehold Land and Buildings £ 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 2021 (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 2021 Funds Funds Funds 2020 £ £ £ £ £ £ £ £ 5,040 5,040 3,038 3,038 0 500 |
| 5,040 0 5,040 3,538 0 3,038 |
|
| 360 552 912 200 558 758 0 0 0 0 0 0 |
|
| 360 552 912 200 558 758 |
|
| 75,000 75,000 75,000 75,000 63,138 60,423 19,131 142,693 46,616 54,759 13,565 114,940 (360) (552) (912) (200) (558) (758) |
|
| 62,778 135,423 18,579 216,781 46,416 129,759 13,007 189,182 |
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 is now being used for the New Project.
(b) Community Garden Fund, for monies received towards this project
(c) Lectern Fund, for monies received towards this project
(d) Memorial Garden Fund for monies received towards this project
(e) Video Streaming Fund for monies received towards this project
(f) Woodland/HYA Fund for monies received towards this project.
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PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)
| 10 STATEMENT OF FUNDS Unrestricted Funds General Fund Designated Funds Fabric Fund Church Hall Property Fund Restricted Funds Church Fund Community Garden Lectern Fund Memorial Garden Video Streaming Woodland/HYA Total Funds |
Balance Transfers, Balance b/fwd other gains c/fwd 1 Jan 2021 Income Expenditure and losses 31 Dec 2021 £ £ £ £ £ 46,416 90,379 (68,417) (5,600) 62,778 |
|---|---|
| 46,416 90,379 (68,417) (5,600) 62,778 |
|
| 54,759 64 0 5,600 60,423 75,000 0 0 0 75,000 |
|
| 129,759 64 0 5,600 135,423 |
|
| 7,850 100 (1,230) 0 6,720 1,254 464 (954) 0 763 0 500 0 0 500 2,068 0 0 0 2,068 0 6,651 0 0 6,651 1,836 100 (58) 0 1,878 |
|
| 13,007 7,814 (2,242) 0 18,579 |
|
| 189,182 98,257 (70,659) 0 216,781 |
Reserves Policy
It is PCC policy to maintain a balance on liquid unrestricted funds (if possible) which equates to at least 3 months' unrestricted payments, to cover emergency situations. The current balance on 'liquid' unrestricted funds at the year end, equates to approximately 22 months' of unrestricted payments.
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