Parish of St Mary’s Charlbury with All Saints’ Shorthampton
2022 Financial Review and Financial Statements
FINANCIAL REVIEW
Overview
2022 was a year of uncertainty for PCC finances. The ending of Covid restrictions brought hope that a more normal level of service might be achieved within the parish, but this was quickly tempered by concerns about the impact of the war in Ukraine, particularly on the cost of utilities and the effect this might have on how the 2 churches were able to operate. However, it was also a year where the facilities at both churches were improved and where the Cornerstone initiative continued to get considerable support from parishioners and thus was able to continue to provide help to a surprisingly large number of families who continued to need support during the difficult economic times.
Overall the value of parish funds decreased by 17%. This was largely due to some considerable expenditure from the two fabric funds which was used to provide much needed maintenance for both churches, and some long needed enhancements to their facilities. The General Fund, which covers the day to day operational costs of the of the parish, also fell in value by about 17% although it still continues to meet the PCC policy of maintaining a balance equating to at least 3 months operational expenditure – but only just!
Unrestricted Funds
Unrestricted Funds comprise: (1) the General Fund, which is used to cover operational expenditure, and (2) designated funds, which finance particular church activities.
General Fund
Income held up well during the year, despite Covid restrictions remaining in place far longer than had been anticipated at the start of the accounting period. It was particularly pleasing to see the church facilities being used more frequently than in the recent past, thereby generating more income from church bookings, but also producing higher than expected collections at services. In addition, there were a number of very successful fund raising activities which more than met expectations. Sadly, any increase in income was more than offset by some larger than anticipated expenditure on long awaited maintenance and upgrade projects, to include a new website and repair of high level lights at St Mary’s, and the purchase of new furniture for All Saints’. However, we were fortunate in being in a contract for gas and electricity that only ended in September 2022. As a result, the impact of higher utility costs was limited to the last 3 months of the year -- but this provided a foretaste of what could be expected in 2023.
Designated Funds
Designated Funds comprise:
- The Font Fund which receives takings from the weekly Font Café and uses this income to support initiatives to develop the church’s mission in the parish. The re-opening of the café once Covid restrictions were lifted
was widely welcomed in the parish and the café is now well attended, generating some useful income.
-
The Commemoration Flowers Fund which raises money for the purchase of church flowers in memory of loved ones. There has been little activity.
-
The Legacies Fund , established in 2019 to ensure that legacies were used to sustain and strengthen the Church ministry and facilities, in line with the wishes of the donors, has not been used during 2021
Restricted Funds
Restricted Funds comprise the following:
-
The St Mary’s Fabric Fund was used to pay for enhancements to the sound system in the church, and for the preparation of architect plans for the proposed kitchen expansion which, is it hoped, can be started in 2023
-
The All Saints’ Fabric Fund was well used during the year, primarily for the building of a French drain around the church, designed to overcome the perennial problem of damp in the church, but also for the installation of a compostable lavatory in an outbuilding (with the help of a grant). The roofs of both the porch and the outhouse/lavatory were also fully replaced.
-
The Cornerstone Fund was well supported by the local community, and by a number of grant-making organizations, and has been well used throughout the year. The project is widely recognized as fulfilling a much needed role within the town of Charlbury and it continues to seek new ways of providing support. During the year, it has expanded its operations to include, through the Learning Café, after-school tuition for children identified by their teachers as requiring extra help, and the purchase of school uniforms for families who would otherwise struggle to meet the cost.
-
The Music Fund was established to account for donations to support the choir of St Mary’s. It has not been used during the reporting period.
-
The Memory Café Fund has continued to use a grant of £1750, received from the Diocese in 2021, to run a monthly Café to provide support and counselling for those members of the parish with memory loss, often through dementia.
Outlook for 2023
Financial Strategy and Management
Given the current economic climate, the focus for the General Fund will be on maintaining control – indeed minimising -- expenditure. The impact of greatly increased utility bills has already been felt and the situation is unlikely to improve during 2023. At the same time, it is hoped that the resources of the Fabric Funds, which have been built up over previous years, together with new grants and donations, will allow some long-planned enhancements to the 2
churches – most notably the installation of a new kitchen facility at St Mary’s – to go ahead.
2023 Budget Forecast
The PCC has approved a budget for 2023 which is largely in line with General Fund expenditure in 2022, but which assumes a 115% increase in charges for gas and electricity. In order to have a balanced budget, it has been necessary to set a much higher than normal target for fund raising. The PCC recognizes that, should this target not be achieved, it may be necessary to reconsider the requirement to hold 3 months expenditure in reserve.
Peter Durrant PCC Treasurer
Parish of St. Mary’s Charlbury with All Saints’ Shorthampton
Financial Statements for the Year Ended 31 December 2022
STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | Funds | Restricted Funds | Total | Total | |
|---|---|---|---|---|---|
| General | Designated | 2022 | 2021 | ||
| Income from : | |||||
| Donations + legacies | 8517~~5~~ | 24040 | **109215 ** | 149701 | |
| Income from Charitable activities | 9795 | 5975 | 15770 | 28341 | |
| Investments | 197 | 197 | 15 | ||
| Other income | 1400~~9~~ | 2120 | 10368 | 26497 | 37430 |
| Total income from : | 109176 | 2120 | 40383 | **151679 ** | 215487 |
| Expenditure on : | |||||
| Raising funds | 302 | 0 | 302 | 1461 | |
| Expenditure on Charitable Activities | 112503 | 48870 | **161373 ** | 106402 | |
| Other Expenditure | 198 | 13792 | 13990 | 33084 | |
| Total Expenditure on : | 112805 | 198 | 62662 | **175665 ** | 140947 |
| Net Income/Expenditure | -3629 | 1922 | -22279 | -23986 | 74540 |
STATEMENT OF ASSETS AND LIABILITIES
| Total 2022 | Notes | Total 2021 | |
|---|---|---|---|
| Current Assets - Cash at Bank and in Hand | |||
| Santander - current Account | 24947 | 14355 | |
| CAF Bank Current Account | 71357 | 107989 | |
| CCLA (CBF) - deposit account | 16531 | 16531 | |
| Cash in Hand | 1010 | 22 | |
| Agency Collections | 126 | 1 | |
| TOTAL | 113971 | 138897 | |
| Liabilities -Agency accounts | |||
| Agency collections | 0 | 1028 | |
| TOTAL | 0 | 1028 | |
| Net Total Assets | 113971 | 137869 |
Note:
- £126 wrongly attributed to Agency Operation and now included in accounts
The attached notes form part of these financial statements:
See Note 3 for movements in unrestricted and restricted funds during the year.
See Note 4 for details of agency collections.
See Notes 5-7 for more detailed breakdowns of income and expenditure.
Parish of St. Mary’s Charlbury with All Saints’ Shorthampton
Financial Statements for the Year Ended 31 December 2022
NOTES
Note 1. The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 using the Receipts and Payments Basis.
Note 2. Figures shown for 2022 have ben revised to be consistent with the revised nominal accounts categories that were introduced in 2009.
Note 3. The distribution of monetary assets between unrestricted and restricted funds and the movement in funds during 2022 is shown in Table 1 below.
Table 1 : Movement in Restricted and Unrestricted Funds (excluding Agency operations)
| Fund Type and Title | Fund Balance B/F | Restated after prior year adjustment |
Notes | Incoming Resources |
Outgoing Resources |
Fund Balance C/F |
|---|---|---|---|---|---|---|
| Unrestricted funds | ||||||
| General Fund | 33206 | 32957 | 1 | 109176 | 112805 | 29328 |
| SM Projects Fund | 0 | 0 | 0 | 0 | 0 | |
| Legacies Fund | 4453 | 4453 | 0 | 0 | 4453 | |
| Font Fund | 8956 | 8955 | 2060 | 198 | 10817 | |
| Commemoration fowers Fund | -52 | -39 | 60 | 0 | 21 | |
| Sub-Totals - Unrestricted Funds | 46563 | 46326 | 111296 | 113003 | 44619 | |
| Restricted Funds | ||||||
| SM Fabric Fund | 21379 | 21379 | 2210 | 5298 | 18291 | |
| AS Fabric Fund | 31901 | 31901 | 6025 | 27987 | 9939 | |
| Organ Fund | 416 | 491 | 2 | 0 | 0 | 491 |
| Cornerstone | 36322 | 36322 | 32149 | 29136 | 39335 | |
| MemoryFund | 1287 | 1537 | 1 | 0 | 241 | 1296 |
| Sub Totals Restricted Funds | 91305 | 91630 | 40384 | 62662 | 69352 | |
| TOTALS ALL FUNDS | 137868 | 137956 | 3 | 151680 | 175665 | 113971 |
Notes: the following corrections have been made to 2021 Opening Balances:
-
£250 transferred from General Fund to Memory Café, as required by last year's accounts
-
£75 wrongly credited to General Fund in 2021 and has been transferred to Organ Fund in June 2022.
-
An extra £88 canot be identified and has been credited to the revised Fund Balance C/F.
Note 4: Agency operations are activities that are not included in the Financial Statements since money received is paid over in full to a third party. In previous years, this has included money collected by the PCC on behalf of the Diocese for wedding and funeral fees as well as fees for the vergers, organist and gravediggers. This year, there are no agency operations, and the entry of £126 in the Statement of Assets and Liabilities was an incorrect entry.
Parish of St. Mary’s Charlbury with All Saints’ Shorthampton
Financial Statements for the Year Ended 31 December 2022
Note 5: Table 2 shows income and expenditure during 2022 broken down between the different fund groups. The General Fund is used primarily to finance the PCC’s operational costs.
Table 2 : Income and Expenditure by Group
| Unrestricted | Funds | Restricted | |||
|---|---|---|---|---|---|
| General | Desgnated | Funds | Total 2022 | Total 2021 | |
| Income | |||||
| Planned Giving | 58604 | 58604 | 58859 | ||
| Other Giving | 10864 | 2120 | 565 | 13549 | 24101 |
| Gift Aid Recovery | 15707 | 128 | 15835 | 21048 | |
| Grants | 6838 | 1567 | 8405 | 43178 | |
| Fund Raising Activities/Events | 9795 | 5974 | 15769 | 10664 | |
| Fees Income | 7170 | 7170 | 4810 | ||
| Legacies | 0 | 0 | 0 | ||
| Cornerstone Initiative | 0 | 32150 | 32150 | 52812 | |
| Other income | 197 | 197 | 16 | ||
| Total Income | 109175 | 2120 | 40384 | 151679 | 215488 |
| Expenditure | |||||
| Parish Share | 58985 | 58985 | 58985 | ||
| Clergy Expenses | 4763 | 4763 | 4155 | ||
| Church and Outreach | 3078 | 3078 | 2942 | ||
| Parish Administration + Ofce Expenses | 20351 | 20351 | 16170 | ||
| Utilities and Insurance | 9498 | 9498 | 8520 | ||
| Church and Churchyard | 8287 | 8287 | 3324 | ||
| Cleaning/Maintenance | 7542 | 7542 | 3286 | ||
| Major Building Repairs + Improvements | 33285 | 33285 | 14479 | ||
| Fund Raising Costs | 301 | 301 | 1461 | ||
| Cornerstone | 29135 | 29135 | 27014 | ||
| Other Expenditure | 197 | 241 | 438 | 612 | |
| Total Expenditure | 112805 | 197 | 62661 | 175663 | 140948 |
| Funds Balance | -3630 | 1923 | -22277 | -23984 | 74540 |
Note 6: Table 3 shows the distribution of capital spending on building repairs and improvements.
Table 3: Capital Expenditure by Fund
| General Fund | SM Fabric | AS Fabric | Total Capital | Total Capital | ||
|---|---|---|---|---|---|---|
| Reserves | Legacy Fund | Fund | Fund | Expenditure | Expenditure | |
| 2022 | 2022 | 2022 | 2022 | 2022 | 2021 | |
| St Mary's Charlbury | ||||||
| Building Repairs and improvements | 5298 | 5298 | 3654 | |||
| All Saints Shorthampton | ||||||
| Building Repairs and improvements | 27986 | 27986 | 10825 | |||
| 5298 | 27986 | 33284 | 14479 |
Parish of St. Mary’s Charlbury with All Saints’ Shorthampton
Financial Statements for the Year Ended 31 December 2022
Note 7: The General Fund is used primarily to finance the operational budget of the PCC. Table 4 provides a more detailed breakdown of General Fund income and expenditure by category.
Table 4: General Fund - Operational Income and Expenditure (Detailed)
| Operational Income (General Fund) | 2022 | 2021 |
|---|---|---|
| Planned Giving | 58605 | 58859 |
| Parish Giving Scheme | 48206 | 41982 |
| Standing Orders | 7445 | 12182 |
| Envelopes | 646 | 1135 |
| Other Plannd giving | 2308 | 3560 |
| Other Giving | 10862 | 7614 |
| One of donations | 4371 | 4692 |
| Collections at Services | 5043 | 789 |
| Wall Boxes and Card Reader | 1448 | 2133 |
| Gift Aid Recovery | 15707 | 16335 |
| Grants | 6838 | 5289 |
| Fund Raising Activities | 9795 | 10664 |
| PCC Fees (Weddings + Funerals) | 4881 | 3807 |
| Hire and use of Church Facilities | 2290 | 1006 |
| Investment Income | 197 | 15 |
| Other Receipts | 0 | 0 |
| Total Operational Income | 109175 | 103589 |
| Operational Expenditure (General Fund) | ||
| Parish Share | 58985 | 58985 |
| Clergy Expenses | 4763 | 4155 |
| Church and Outreach Actiivities | 3078 | 2942 |
| Parish Administration | 18054 | 16170 |
| Administrators' Services | 9687 | 9240 |
| Ofce Equipment + Consumables | 6032 | 4155 |
| Photocopying + Printing | 0 | 1619 |
| Other Ofce Costs | 2335 | 1156 |
| Utilities | 6499 | 3223 |
| Elctricity | 1088 | 1957 |
| Gas | 3114 | 891 |
| Telephone + Internet | 2297 | 375 |
| Church Cleaning | 1424 | 977 |
| Building Maintenance + Minor Repair | 10762 | 1775 |
| Equipment Repairs /Maintenance | 0 | 534 |
| Churchyard Maintenance | 3642 | 3324 |
| Insurance | 5297 | 5297 |
| Fundraising Costs | 301 | 1461 |
| Total Operational Expenditure | 112805 | 98843 |
| Excess of Income over Expenditure | -3630 | 4746 |
Parish of St. Marfs Charlbury with All Saints, Shorthampton Financial Statements for the Year Ended 31 December 2022 Independent Examinerfs Report to the PCC of St. Marfs Charlbury with All Saints, Shorthampton This report on the financial statements of the PCC for the year ending 31" December 2022, which are set out in Appendix I to the PCC Annual Report for 2021, is in respect of the examination carried out in accordance with Church Accounting Regulations and Section 43 of the Charities Act 1991. Respertive Responsibilities of the PCC and the Examiner As members of the PCC you are responsible for the preparation of the financial statements. You consider that the audit requirement of the Regulations and the Section 43121 of the Act do not apply lincomelexpenditure above £250,000). It is my responsibility to issue this report to those financial statements in accordance with the terms of the Regulations. Basis of this Report My examination was carried out in accordance with the directions given by the Charity Commission under section 4317lb of the Act to be found in the Church Guidance 2006 edition issued by the Archbishop's Council. The examination includes a review of the accounting records kept by the PCC. It also includes considering any unusual terms or disclosures in the financial statements and seeking explanations from you as trustees concerning any 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 Examlnerfs Statement In connection with my examination, no matter has come to my attention: lil which gives me cause to believe that in any material respert the requirements to keep accounting records in accordance with Section 41 of the Act and to prepare financial statements which comply with the Act have not been met,. or lill to which in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to have been reached. However, it is recommended that, on monthly basis, the Church Wardens should be required to confirm in writing that they have seen details of all transaction5 undertaken during the preceding month and are satisfied that they are correct, authorised and approved- such records to be made available at future annual examinations. MrTony Morgan Independent Examiner 22 february 2023