Annual Report and Financial Statements of the Parochial Church Council of the Ecclesiastical Parish of St. John the Baptist, Southend-on-Sea for the year ended 31st December 2022
TO BE A CHURCH OF DIFFERENT PEOPLE TRUSTING AND FOLLOWING JESUS, LOVING AND FORGIVING ONE ANOTHER, SERVING OUR COMMUNITIES AND ESTABLISHING INNOVATIVE NEW CHURCHES ACROSS SOUTHEND FOR OUR GREATEST JOY AND TO THE GLORY OF GOD.
PRIEST-IN-CHARGE & CHAIR OF TRUSTEES
REVD. MIKE WALKER
INDEPENDENT EXAMINER:
J P FRANCIS FCA, 1386 LONDON ROAD, LEIGH-ON-SEA SS9 2UJ
BACKGROUND
St John the Baptist PCC co-operates with the incumbent in the promotion of the Christian Faith in our ecclesiastical parish and the fulfilment of our church vision set out below and the responsibility and maintenance of the church buildings and grounds.
CHARITABLE STATUS
The PCC is a charity registered with The Charities Commission #1194402
RECRUITMENT OF TRUSTEES
The appointment of trustees is determined in accordance with the Parochial Church Council Procedures. All of our trustees are safely recruited and DBS checked.
CURRENT PCC MEMBERSHIP
Members of the PCC are either ex officio or elected at the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation rules as published by the Church of England. They are as follows (starred persons are on the standing committee):
Priest in Charge (chair) Rev Michael Walker Wardens Lucy Ramsay Jacky Rossi Deanery Synod Deji Adesida Elected Members Christine Ballard Steve Bannister Jenny Martin (PCC Secretary) James Myerscough Lewis Saville Linda Saville* Sam Svanda Linda Thornton
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YEAR IN REVIEW
The key highlights of year to 31st December 2022 are as follows:
- The Christ Church project launched on 20th March 2022. This church Is based to the East of St John's. 20 adults and children (17 from St John’s, 3 from St Michael’s) volunteered to be a part of a team that would revitalise the ministry of our neighbouring parish. The ministry of that church has grown significantly over the year. Sunday attendance has gone from an average of 41 before the March start, to 92 in the last quarter of 2022.
Since January 2022, Christ Church underwent an extensive refurbishment, with new flooring and chancel, new seating, new A/V and new coffee area. The project also received grant funding to employ two part time children and youth leaders.
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The ministry of St John’s has also seen good growth. We appointed our new Community Pastor Linda Saville in September, who is being discerned for Ordained ministry in the CofE. We have expended our youth and children’s volunteer team to better cater for larger number of Secondary and Primary age children. Tots remains a strong and stable community group on a Thursday with new people signing up every week. We have expanded our offer of small groups over the year to enable more mid-week fellowship, bible study and prayer. We coordinated and launched the yearlong study of the book of Romans with the Rev Dr Paul Blackham with over 140 registrations for this ministry. Bible Live has continued through the year on a Thursday and The Bible Live YouTube channel has now gathered 14,300 views and 2,800 hours of viewing time over its lifetime.
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Notable one-off events through the year include: Alpha Course in January, Baptism services on Easter Sunday and October, Artless production of Centurion, Paul Jones and Fiona Hendley concert, October Light Party, our Carol Service and Christingle.
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Networked events (together with Christ Church and St Michael’s Westcliff) have been wonderful occasions too. Belchamps Weekend away saw over 250 attendees on the Sunday and a wonderful time of camping and fellowship across the weekend. Revitalise, the new Youth Ministry saw 95 Youth in November at St Michael’s. Our first joint prayer gathering ‘Prayer for the City’ in September was also well attended across the network and from Christians across the city.
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Sunday attendance figures have grown, despite losing 17 adults and children to the Christ Church revitalisation and seeing Rod and Jo Harvey and family begin a new ministry at Southend Vineyard.
Sunday Attendance Jan–Oct 2022
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120
100
80
60
40
20
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
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Signed (PCC Chair) 29/03/2023
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Financial Highlights for 2022
2022 was the first full year for St John’s operation as a standalone parish, following the Church Plant from St. Michael & All Angels Westcliff, completion of comprehensive reordering and building work at St. John’s and formal separation from Southend Team Ministry of churches in early 2021. This is reflected in the financial numbers for the year ended 31[st] December 2022, which are presented in detail in the Annual Report & Accounts and will be filed with Chelmsford Diocese and the Charity Commission in due course.
Note: St John’s detailed annual Accounts include comparative Income and Expenses figures for the ‘Period Ending 31.12.2021’ which reflect the activities of the St John’s church plant for the 2-year period from Jan-2020 (when the church plant from St Michael’s effectively began) until Dec-2021. Until the establishment of St John’s as a new registered charity (in May-2021) with its own bank account/ PCC etc, these financial activities were managed through the bank accounts of St Michael & All Angels, Westcliff and segregated/ reported within a designated ‘St John’s Church Plant Fund’ in St Michael’s books. This Fund is no longer required and was closed effective from Nov-22 (see below).
Here are a few financial highlights from the 2022 reporting year:
Regular giving/ income and other donations
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As previously, the majority of regular giving to St John’s came via regular weekly/ monthly bank standing orders ( c.£36,400 in 2022) and via tax-efficient schemes (such as Stewardship and Charities Aid Foundation – c.£1,650 in 2022). General cash donations received were c.£6,000.
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Despite the departure/ loss of a couple of material givers (due to personal circumstances), the spread/ breadth of regular donations improved in late 2022/ early 2023 following Mike’s general appeal to the congregation. Many thanks to all of those who responded so generously!
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Following a back-dated claim submitted for accumulated Gift Aid tax recoveries on eligible donations dating back to formal establishment of St. John’s as a new registered charity in May-21, St. John’s received a total of c.£14,850 in tax recoveries towards the end of 2022. Note: In future, Gift Aid claims will be submitted on a quarterly basis - £2,255 relating to Q4 2022 was received in early Jan-23 .
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In addition, St. John’s received income from the popular weekly Tots group (c.£1,400 in 2022) and via the Contactless giving machine (c.£2,860 less fees deducted).
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Other income arises mainly from rent charged for hired-out car park spaces (c.£5,000 in 2022) and occasional church bookings/ events.
Parish Share allocation/ contributions
- ‘Parish Share’ is the amount of funding required to be passed on from individual parishes to contribute towards the budgeted costs of the Chelmsford Diocese, incl. provision of clergy to parishes (salary, pensions, housing and other expenses), curate training, central resources/ support to parishes and various other Diocese/ Deanery costs.
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Share allocations to individual parishes are calculated in accordance with a formula, reflecting a number of variables, including an allowance to reflect the relative deprivation of the geographical area.
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During 2022, St. John’s paid Parish Share contributions totalling c.£32,000 (up from c.£8,000 in 2021) via monthly instalments – these were funded entirely from general giving/ other donations made to St. John’s.
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Note: Based on revised methodology introduced by the Diocese for the 2023 Parish Share allocations, and after detailed discussions at Southend Deanery level, St. John’s has committed to pay c.£32,000 again over the course of 2023. This reflects in part a co-operation agreement made between the PCCs of the 3 ‘network’ churches – St. John’s, St. Michael’s and Christchurch .
Staff changes/ funding arrangements
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There were a number of changes in the make-up of St. John’s paid staff team during the year, as follows:
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➢ Becky Armstrong (Childrens Worker) returned to work on a part-time basis following her period of maternity leave;
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➢ Mary Cherni (part-time Worship & Creative Leader) increased her hours to acknowledge and take account of additional responsibilities;
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➢ Rod Harvey (full-time Operations Manager) departed St. John’s to take up a new role as Pastor at Southend Vineyard from Aug-22;
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➢ Alan Prosser came on board as part-time Facilities & Finance Manager, also in Aug22, to take on some of the role/ responsibilities vacated by Rod;
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➢ Linda Saville was appointed as new, full-time Community Pastor from Sep-22.
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Note: After a significant delay in receiving formal Home Office confirmation for the transfer of Mary’s visa sponsorship arrangements from St. Michael’s to St. John’s, this was finally confirmed in Apr-22. This meant that Mary’s employment contract could also be transferred from St. Michael’s to St. John’s - completed in Sep-22. This facilitated closure of the designated St. John’s Church Plant Fund at St. Michael’s, with the residual balance transferred to St. John’s bank account .
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All of St. John’s staff salaries/ pension costs ( c.£78,500 in 2022, incl. c.£17,500 for Mary C funded via St. Michael’s prior to transfer of her employment contract back to St. John’s in Sep-22 ) continue to be met in full from central church Strategic Development Fund (‘SDF’) grant funding – these monies will continue to support St John’s until the SDF grant funding ceases in August 2025 . From that time, St. John’s will need to be able to finance any ongoing paid roles from its own giving/ resources.
Buildings/ repair costs etc
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Following damage caused to the church building from a burglary, repairs totalling c.£7,050 were funded from insurance claim monies received.
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St John’s acquired additional chairs/ storage trollies in early 2022 – total cost £10,700 was funded from remaining budgeted SDF grant receipts. SDF grant funds also covered c.£2,800 to pay the final balance due to building contractors in relation to the major re-ordering work completed in 2021.
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As part of required work identified by the quinquennial (5-year) inspection of St. John’s in 2021, material repairs were made to parts of the church roof at a total cost of c.£10,000 (incl. scaffolding) – these were funded from general cash reserves.
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Other material projects that will/ may require funding in the near future include: 1. Stained-glass window repairs – arrangements to repair vandalism damage to the main East window are in course/ awaiting formal Faculty approval by Chelmsford Diocese. The approx. cost of £2,250 (incl. internal scaffolding costs) will be met from an insurance claim.
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Replacement of windows in creche/ kitchen area – this will also require formal Faculty approval. Estimated costs of c.£10,000 will need to be met from St John’s cash reserves.
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Churchyard security – PCC is exploring options to improve the security (esp. at night-time) and general amenity/ attractiveness of the churchyard. In this regard we are investigating possible grant funding, to supplement funding from cash reserves.
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Church heating – the current gas boiler/ radiator system is deemed to be inadequate to provide a reasonable level of heating to the church building during the coldest months of the year. We are exploring as a priority a number of options to increase/ enhance the heat output.
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Routine/ general repair costs are met from available cash reserves, as required.
FY22 Net result and closing cash position
St. John’s reported an overall consolidated net Income/ Expenditure deficit of £2,500 for 2022. This resulted in a reduction in Dec-22 cash reserves to £41,555 and in the total Balance Sheet net assets position to £42,138 .
Reserves policy
Since Mar-23, cash surplus to immediate requirements is invested in a St. John’s-designated deposit account held with the Central Board of Finance of the Church of England (‘CBF’), via CCLA, which invests funds in ethical funds and offers a slightly higher rate of interest than traditional high street banks, with comparable security of deposit.
PCC considers that a minimum of two months average expenditure, estimated at £10,000, should be retained as standby liquidity in the main Lloyd’s bank accounts, to cover any unforeseen income fluctuations. PCC regularly reviews the level of reserves to ensure that sufficient funds are held to meet its contractual commitments and those arising from other obligations.
Alan Prosser – Facilities & Finance Manager 31st March 2023
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St John The Baptist Church Statement of Financial Activities
for the year ended 31st December 2022
| Income from: Donations and legacies Investment income Charitable activities Other trading activies Other Total Income Expenditures: Raising funds Charitable activities expenses Other expenditure Total Expenditures Net income/(expenditure) resources before transfer Transfers Gross transfers between funds - in Gross transfers between funds - out Net movement in funds Total funds brought forward Total funds carried forward Represented by Unrestricted fund General fund |
( ( |
Restricted - - 99,873 - - 99,873 - 96,877 - 96,877 2,996 ( - 2,996) 2,996) - - - - |
Unrestricted 71,254 14 3,459 5,609 7,058 87,394 1,234 86,815 4,841 92,890 5,496) ( 2,996 - 2,996 44,638 42,138 42,138 42,138 |
Year Ended 31.12.2022 71,254 14 103,332 5,609 7,058 187,267 1,234 183,692 4,841 189,767 2,500) - - - 44,638 42,138 42,138 42,138 |
Period Ended 31.12.2021 100,915 2 389,934 3,155 13,403 507,409 1,041 460,390 1,340 462,771 44,638 - - - - 44,638 44,638 44,638 |
|---|---|---|---|---|---|
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St John The Baptist Church Analysis of income and expenditure for the year ended 31st December 2022
| Income Donations and legacies Cash donations Donations and legacies Gift Aid received on donations Giving station Regular giving Special collections Stewardship/CAF donations Sundry receipts Website special events Website giving Investment income Bank interest Charitable activities Clergy fees received Fundraising events Kids ministry income SDF Income grant Other trading activies Car parking fees Premises hire Other Furniture sale Insurance pay out Total Income |
Restricted - - - - - - - - - - - - - - - - 99,873 99,873 - - - - - - 99,873 |
Unrestricted 6,086 1,611 17,117 2,865 36,372 1,864 1,648 355 2,475 861 71,254 14 14 1,284 733 1,442 - 3,459 4,966 643 5,609 - 7,058 7,058 87,394 |
Year Ended 31.12.2022 6,086 1,611 17,117 2,865 36,372 1,864 1,648 355 2,475 861 71,254 14 14 1,284 733 1,442 99,873 103,332 4,966 643 5,609 - 7,058 7,058 187,267 |
Period Ended | Period Ended | |
|---|---|---|---|---|---|---|
| 31.12.2021 2,043 20,446 8,958 642 63,566 1,095 3,871 50 - 244 100,915 2 2 497 - - 389,437 389,934 1,236 1,919 3,155 4,820 8,583 13,403 507,409 |
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St John The Baptist Church Analysis of income and expenditure for the year ended 31st December 2022
| Expenditures Raising funds Advertising Charitable activities expenses AV/IT equipment Building and refurbishment project Christmas Cleaning and waste expenses General ministry Hospitality Insurances Insured burglary items Kids ministry General administrative expenses Organ maintenance Parish fees paid to Diocese Parish share Pastoral team Recurring office expenses Repairs and maintenance SDF Clergy expenses SDF Salaries and pensions St Johns external giving/ mission Sundry expenses Staff costs Training Utilities Other expenditure Accountancy Contactless fees/ website fees Copyright Guest speaker fees and expenses Organ playing fees Other professional services Total Expenditures Net Income/(Expenditure) |
Restricted - - - 13,482 - - - - - - - - - - - - - - 2,306 81,089 - - - - - 96,877 - - - - - 96,877 2,996 ( |
Unrestricted 1,234 1,234 1,762 - 1,224 3,970 1,427 1,270 4,942 7,059 2,951 2,373 555 659 31,992 1,990 2,831 14,585 - - 1,021 500 - - 5,704 86,815 700 154 636 2,001 645 705 4,841 92,890 5,496) ( |
Year Ended 31.12.2022 1,234 1,234 1,762 13,482 1,224 3,970 1,427 1,270 4,942 7,059 2,951 2,373 555 659 31,992 1,990 2,831 14,585 2,306 81,089 1,021 500 - - 5,704 183,692 700 154 636 2,001 645 705 4,841 189,767 2,500) |
Period Ended | Period Ended | |
|---|---|---|---|---|---|---|
| 31.12.2021 1,041 1,041 95,890 153,750 18 687 - 2,230 5,151 6,571 3,351 1,876 810 - 7,998 - 2,032 33,467 4,854 130,271 1,431 - 5,966 192 3,845 460,390 950 - 135 - - 255 1,340 462,771 44,638 |
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St John The Baptist Church Balance Sheet As of December 31, 2022
| Fixed Asset Cash at bank and in hand Checking (5280) Savings (5168) Petty cash St Michaels account Debtors Debtors Prepayments Creditors Accruals Total net assets (liabilities) Charity funds Surplus/(Deficit) Total Charity funds |
Restricted - - - - - - - - - - - - - |
Unrestricted 11,375 30,015 165 - 41,555 9,315 80 9,395 8,812 8,812 42,138 42,138 42,138 |
Year Ended 31.12.2022 11,375 30,015 165 - 41,555 9,315 80 9,395 8,812 8,812 42,138 42,138 42,138 |
Period Ended 31.12.2021 15,294 30,002 - 42 45,338 250 - 250 950 950 44,638 44,638 44,638 |
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St John The Baptist Church for the year ended 31st December 2022
Notes to the Financial Statements
1) Accounting Policies
a) Basis of preparation
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) (effective 1 January 2015)’,Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
Financial reporting standard 102 – reduced disclosure exemptions
The charity has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 ‘The Financial Standard applicable in the UK and Republic of Ireland’:
- The requirement of Section 7 Statement of Cash Flows.
Taxation
The charity is exempt from tax in its charitable activities.
b) Funds
General funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available by approval for the general purposes of the PCC. Funds designated for a particular purpose by the PCC are also unrestricted.
The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of Church members.
c) Incoming Resources
Voluntary income and capital sources
Collections are recognised when received by or on behalf of the PCC.
Planned giving receivable under covenants is recognised only when received.
Income tax recoverable on covenants or gift aid donations is recognised when the income is received.
Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the PCC is reasonably certain.
d) Resources Used
Costs of generating funds
These include the costs of any fund-raising activities.
Grants
Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC.
Activities directly relating to the work of the Church
The diocesan parish share is accounted for when paid.
Governance costs
These represent the cost involved in running and staffing the church office. The independent examiner has kindly waived his entitlement to any fees.
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St John The Baptist Church for the year ended 31st December 2022
e) Fixed Assets
Consecrated land and buildings and moveable church furnishings
Consecrated and benefice property is excluded from the accounts by s.96(2)(a) of the Charities Act 2011.
No value is placed on moveable church furnishings held by the churchwardens on special trust for the PCC, which require a Faculty approval for disposal and which the PCC considers to be inalienable property, since insufficient cost information is available to value such assets in the accounts.
All expenditure incurred during the year on consecrated or beneficed buildings, individual items under £1,000 or on the repair of moveable church furnishings acquired is written off.
f)
Current assets
Amounts owing at 31 December in respect of fees, rents or other income due are shown as debtors less provision for amounts that may prove uncollectible.
Short-term deposits include cash held on deposit at the bank.
2) Trustee Expenses
No trustee received any remuneration for services provided to the charity in the year other than those disclosed in the Related Party note.
| 3) | Staff Costs Wages and salaries including Social Security costs Staff pension |
Year Ended 31.12.2022 £ 78,022 3,067 |
Period Ended 31.12.2021 £ 125,552 4,719 |
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St Johns The Baptist Church employed 5 staff members during the year. No employee received any benefits other than that of a pension.
5) Debtors
| Debtors Prepayments Liabilities: Amounts falling due with one year Accrual Analysis of Net Assets by Fund Current Assets Current Liabilities |
Restricted - - - Restricted - - Restricted - - - |
Unrestricted 9,315 80 9,395 Unrestricted 8,812 8,812 Unrestricted 50,950 8,812 42,138 |
Year Ended 31.12.2022 £ 9,315 80 9,395 Year Ended 31.12.2022 £ 8,812 8,812 Year Ended 31.12.2022 £ 50,950 8,812 42,138 |
Period Ended 31.12.2021 £ 250 - 250 Period Ended 31.12.2021 £ 950 950 Period Ended 31.12.2021 £ 45,588 950 44,638 |
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6) Liabilities: Amounts falling due with one year
7) Analysis of Net Assets by Fund
8) Related Party Disclosure
During the year the charity paid a salary of £10,000 to Mrs L Saville with pension contributions totalling £59 for her acting role as Community Pastor since September 2022. Mrs L Saville is a Trustee.
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Independent Examiner's Unqualified Report
St John The Baptist Church
Independent Examiner’s Report to the Trustees
I report on the financial statements of the Trust for the period ended 31 December 2022 set out on pages 1 to 13.
This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of financial statements. The charity’s trustees consider that an audit is not required for this year under Section 144(2) of the Charities Act 2011 (‘the 2011 Act’) and that an independent examination is needed.
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It is my responsibility to:
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examine the financial statements under section 145 of the 2011 Act;
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to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b)^ of the
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- 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items 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 no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
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a) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 130 of the 2011 Act; and
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to prepare financial statements which accord with the accounting records and comply with the accounting requirements of the
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- 2011 Act;
have not been made or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be
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b) reached.
J P Francis FCA 1386 London Road Leigh on Sea Essex, SS9 2UJ
Date: 31st March 2023
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