2025-12-31-accounts

Charity registration number 1210972 (England and Wales)

ST MARGARET'S CHURCH DRAYTON

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

ST MARGARET'S CHURCH DRAYTON

LEGAL AND ADMINISTRATIVE

Trustees Rev M R Palmer R A Johnson (Appointed 11 May 2025) R Harwood (Appointed 11 May 2025) N P Jarvis D W Moore G M Moore S Barwick Professor D L Andrews P J Savage B Wells J M Sargent H J Bower S Sargent Charity number (England and Wales) 1210972 Auditor Sumer Auditco Limited 15 Palace Street NORWICH Norfolk United Kingdom NR3 1RT

ST MARGARET'S CHURCH DRAYTON

CONTENTS

	Page
Trustee report	1 - 4
Statement of trustee responsibilities	5
Independent auditor's report	6 - 8
Statement of financial activities	9
Balance sheet	10
Statement of cash flows	11
Notes to the financial statements	12 - 21

ST MARGARET'S CHURCH DRAYTON

TRUSTEE REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

The trustees present their annual report and financial statements for the year ended 31 December 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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 Republic of Ireland (FRS 102)".

Objectives and activities

St Margaret's Parochial Church Council has the responsibility of co-operating with the incumbent, in promoting in the ecclesiastical parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. It also has maintenance responsibilities for St Margaret's Church and Churchyard.

Public benefit

As a small charity, normally below the Charities Act's audit threshold, the report focuses on the main activities undertaken by the charity to further its charitable purpose for public benefit. The Objective and Activities section of the report provide a summary of activities undertaken together with a confirmation that the Parochial Church Council have had regard to our guidance on public benefit, particularly our guidance on charities for the advancement of religion, when planning their activities.

The annual report specifically addresses the two key principles by which we will assess public benefit:

• There must be an identifiable benefit or benefits - the PCC explain the activities and benefits which flow from them to the parish community

• Benefit must be to the public, or a section of the public - the PCC explain their commitment to enable as many people as possible to worship and become part of the parish community.

Achievements and performance

Significant activities and achievements against objectives

During the year St Margaret's Church Drayton has continued to provide a place of worship for religious activities, conducting religious ceremonies, maintaining church building and the attached public churchyard and generally advancing the religion by education and pastoral care in the parish.

The PCC met six times during the year. The Standing Committee has considered PCC agendas and approved expenditure where necessary in between PCC meetings. The Annual Church Meeting receives full reports.

During the year, plans have been developed for a major update to the Church Room. The Room was built in the 1980’s and heating, insulation, fire and building regulations have changed completely during this period. The aim of the update is to bring the building up to all current regulation standards and to meet the Church of England Net Zero targets. At the same time, it is hoped to improve the heating in the Church. These plans can only be achieved due to the extraordinary generosity of the late Mr Thirtle, a true friend of Drayton village. As promised in the last report, a thanksgiving service was held. In the coming months, the architect overseeing the project, Denis Tuttle, will seek approval from Heritage authorities, Planning Authorities and the Diocese to enable works to proceed.

Church Attendance

A revision of the roll was completed prior to this APCM. Figures are shown in the Electoral Officer’s report to be given at the meeting and appended to the APCM minutes.

2025 saw attendance remain steady with new members joining in place of those lost. The mid-week Communion, using BCP, on a Wednesday has a regular attendance and one 8am BCP Sunday service has continued throughout the year.

The close links with the Junior School continued throughout the year with school services held for Year 6 leavers in July, for Year 6 and parents in December and the rest of the School years also in December for Christmas services. Closer links with the infant school have been maintained and children visited in the spring and before Christmas during the year. Rev Marc has carried out assemblies at both schools.

• 1 -

ST MARGARET'S CHURCH DRAYTON

TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Financial review

While we have sufficient restricted funds to cover work on the fabric of the Church and the Churchyard costs, income for the day-to-day costs of running the Church has remained static.

Many of the regular givers continue to use standing orders which helps to preserve a considerable proportion of income and avoids the need for cash handling. Contactless giving remains available via Sum-Up with a suitable mobile connection, now enhanced with the addition of wi-fi to the Church. However, to meet increasing day to day costs, regular givers do need to reconsider the amount given weekly or monthly. Many have remained the same since 2020 and while every effort is made to keep costs as low as possible, inflation and therefore costs have increased. Only unrestricted funds are available to meet day to day expenditure.

Accounts are prepared using My Fund Accounting software which is software developed primarily for the Charity and Ecclesiastical sector.

Bank accounts are reconciled monthly and, to monitor progress through the year, comparisons of income and expenditure are prepared for presentation to the PCC.

Accounts do not include St Margaret’s Company of Bell ringers. Readers should speak directly to this organisation concerning their financial activities and positions if they require any information.

The financial statements are set out on pages 9 to 21. Total income for the year amounted to £1,148,147 (2024: £1,869,246) and total expenditure amounted to £96,692 (2024: £82,321).

Reserves held that the end of the year amounted to £2,830,326 of this £58,461 was unrestricted funds and £2,766,960 was restricted.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to £10,000. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

• 2 -

ST MARGARET'S CHURCH DRAYTON

TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Risk

Child and Vulnerable Adult Protection

The PCC have adopted a formal policy statement based on the latest Diocesan Policy. This is reviewed each year by the full PCC. The designated person (Richard Johnson) is responsible for monitoring compliance with that policy.

Data Protection

The PCC have adopted a Data Privacy Policy to comply with rules introduced in May 2018.

Social Media Policy

The PCC have adopted the Norwich Diocese Social Media Policy. The only Social Media utilised is Facebook where upcoming events are posted.

Conduct of Meetings Policy

This policy was agreed in 2022 and continues to be utilised.

Care of Clergy

Again, a policy was introduced in 2022 and is reviewed each year by the PCC.

Legislative

These include health and safety, disability and other discrimination and data protection. The PCC has reviewed the legislative requirements in these areas and taken steps to ensure that it meets its responsibilities.

Reputational

The PCC is aware of the Church’s activities (and those of its members) and has conformed to the highest standards associated with a religious organisation. Whilst there is no formal process of review over the many activities undertaken, the PCC is prepared to investigate any concerns that come to its attention or are reported to it by members of the congregation or by outside parties.

Structure, governance and management

The charity is unincorporated.

The trustees who served during the year and up to the date of signature of the financial statements were: Rev M R Palmer

R A Johnson (Appointed 11 May 2025) R Harwood (Appointed 11 May 2025) N P Jarvis D W Moore G M Moore S Barwick Professor D L Andrews P J Savage B Wells J M Sargent H J Bower S Sargent Mrs M Marriott-Sims (Resigned 20 March 2025)

Recruitment and appointment of trustees

Members of the PCC are either ex officio or elected by the Annual Chuch Meeting (ACM) in accordance with the Church Representation Rules.

• 3 -

ST MARGARET'S CHURCH DRAYTON

TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Organisational structure

The charity is governed by the Parochial Church Council Powers Measure (1956) as amended and Church Representation Rules that came into force on 2 January 1957.

All PCC members, apart from Incumbent, are volunteers. Incumbent is employed by Diocese.

The trustee report was approved by the Board of Trustees.

S Barwick

Trustee

14 April 2026

• 4 -

ST MARGARET'S CHURCH DRAYTON

STATEMENT OF TRUSTEE RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2025

The trustees are responsible for preparing the Trustee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed

• and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity

• will continue in operation.

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

• 5 -

ST MARGARET'S CHURCH DRAYTON

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ST MARGARET'S CHURCH DRAYTON

Opinion

We have audited the financial statements of St Margaret's Church Drayton (the ‘charity’) for the year ended 31 December 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 December 2025 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the trustee report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

• 6 -

ST MARGARET'S CHURCH DRAYTON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ST MARGARET'S CHURCH DRAYTON

Responsibilities of trustees

As explained more fully in the statement of trustee responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

• enquiring of management, including obtaining and reviewing supporting documentation concerning the company's policies and procedures relating to:

• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

• the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; - discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud; and

• obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the companies. The key laws and regulations we considered in this context included the Charities Act 2011 and laws specifically applicable to sector in which the company operates.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

• reviewing the Financial Statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

• enquiring of management, concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance, reviewing internal controls systems notes and reviewing correspondence with HMRC; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

• Assessing compliance with relevant laws and regulations, including Health & Safety at Work Act 1974 and Church of England Safeguarding Regulations, to which we found no material shortfalls or had any concerns.

• Assessing other compliance requirements set out by the Church of England, to which we found no material shortfalls or had any concerns

• 7 -

ST MARGARET'S CHURCH DRAYTON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ST MARGARET'S CHURCH DRAYTON

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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 Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Johnstone (Senior Statutory Auditor)

For and on behalf of Sumer Auditco Limited, Statutory Auditor Chartered Accountants 15 Palace Street NORWICH Norfolk NR3 1RT United Kingdom 14 June 2026

Sumer Auditco Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

• 8 -

ST MARGARET'S CHURCH DRAYTON

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted Restricted Endowment funds funds funds 2025 2025 2025 Notes £ £ £ Income from: Donations and legacies 3 103,831 965,185 - Charitable activities 4 8,483 - - Other trading activities 5 3,268 - - Investments 6 57 67,191 132 Total income and endowments 115,639 1,032,376 132 Expenditure on: Raising funds 7 - - - Charitable activities 8 67,936 28,756 - Total expenditure 67,936 28,756 - Net gains/(losses) on investments 12 - (61,350) - Net income 47,703 942,270 132 Transfers between funds - - - Net movement in funds 9 47,703 942,270 132 Reconciliation of funds: Fund balances at 1 January 2025 10,758 1,824,690 4,773 Fund balances at 31 December 2025 58,461 2,766,960 4,905	Total Unrestricted Restricted Endowment funds funds funds 2025 2024 2024 2024 £ £ £ £ 1,069,016 46,003 1,808,268 - 8,483 8,972 - - 3,268 5,321 374 - 67,380 - 308 - 1,148,147 60,296 1,808,950 - - 433 - - 96,692 65,084 16,804 - 96,692 65,517 16,804 - (61,350) - - - 990,105 (5,221) 1,792,146 - - (2,563) (2,210) 4,773 990,105 (7,784) 1,789,936 4,773 1,840,221 18,542 34,754 - 2,830,326 10,758 1,824,690 4,773	Total 2024 £ 1,854,271 8,972 5,695 308
		1,869,246
		433 81,888
		82,321
		-
		1,786,925 -
		1,786,925 53,296
		1,840,221

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

• 9 -

ST MARGARET'S CHURCH DRAYTON

BALANCE SHEET

AS AT 31 DECEMBER 2025

Notes Fixed assets Investments 14 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities The funds of the charity Endowment funds 17 Restricted income funds 18 Unrestricted funds 19	2025 £ 139,458 774,749 914,207 (22,531)	£ 1,938,650 891,676 2,830,326 4,905 2,766,960 58,461 2,830,326	2024 £ 1,873 1,843,431 1,845,304 (8,915)	£ 3,832 1,836,389
				1,840,221
				4,773 1,824,690 10,758
				1,840,221

The financial statements were approved by the trustees on 9 April 2026

S Barwick Trustee

• 10 -

ST MARGARET'S CHURCH DRAYTON

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025

Notes 2025 £ £ Cash flows from operating activities Cash generated from operations 22 860,106 Investing activities Reclassification of investments 3,832 Purchase of investments (2,000,000) Investment income received 67,380 Net cash (used in)/generated from investing activities (1,928,788) Net cash generated from financing activities - Net (decrease)/increase in cash and cash equivalents (1,068,682) Cash and cash equivalents at beginning of year 1,843,431 Cash and cash equivalents at end of year 774,749

2024 £ £ 1,793,659 - (193) 308 115 - 1,793,774 49,657 1,843,431

• 11 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

Charity information

St Margaret's Church Drayton is a unincorporated charity

1.1 Basis of preparation

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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 Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

• 12 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

• 13 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted funds Restricted funds 2025 2025 £ £ Donations and gifts 40,023 25 Legacies 63,808 963,800 Grants - - Charitable giving - 1,360 103,831 965,185	Total Unrestricted funds Restricted funds Total 2025 2024 2024 2024 £ £ £ £ 40,048 43,989 3,747 47,736 1,027,608 - 1,803,000 1,803,000 - 2,014 623 2,637 1,360 - 898 898 1,069,016 46,003 1,808,268 1,854,271

4 Income from charitable activities

	Unrestricted	Unrestricted
	funds	funds
	2025	2024
	£	£
Core activities
Fees	8,483	8,972

• 14 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

5 Income from other trading activities

Unrestricted funds 2025 Restricted funds 2025 Total 2025 Unrestricted funds 2024 Restricted funds 2024 £ £ £ £ £ Fundraising events 3,208 - 3,208 5,101 374 Church room letting 60 - 60 220 - Other trading activities 3,268 - 3,268 5,321 374 Income from investments Unrestricted funds 2025 Restricted Endowment funds funds 2025 2025 Total 2025 Unrestricted funds 2024 Restricted funds 2024 Endowment funds 2024 £ £ £ £ £ £ £ Interest receivable 57 67,191 132 67,380 - 308 -	Total 2024 £ 5,475 220
	5,695
	Total 2024 £ 308

6 Income from investments

• 15 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

7 Expenditure on raising funds

	Unrestricted	Unrestricted
	funds	funds
	2025	2024
	£	£
Fundraising and publicity
fundraising costs	-	433

8 Expenditure on charitable activities

		Core	Core
		activities	activities
		2025	2024
		£	£
	Direct costs
	Parish Share	48,500	53,000
	Clergy expenses	1,365	1,614
	Service costs	1,109	876
	Service support costs	888	720
	Repairs and maintenance	18,211	15,916
	Rates and utilities	3,334	4,209
	Administration	15,653	401
	Insurance	2,600	2,563
	Diocese fees	2,090	-
	Charitable giving	2,942	2,589
		96,692	81,888
	Analysis by fund
	Unrestricted funds	67,936	65,084
	Restricted funds	28,756	16,804
		96,692	81,888
9	Net movement in funds	2025	2024
		£	£
	The net movement in funds is stated after charging/(crediting):
	Fees payable to the charity's auditor:
	- for the audit of the charity's financial statements	13,200	-
	- for other financial services	900	-

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

• 16 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

11 Employees

The average monthly number of employees during the year was:

Total There were no employees whose annual remuneration was more than £60,000.	2025 Number -	2024 Number -

12	Gains and losses on investments
		Restricted	Restricted
		funds	funds
		2025	2024
	Gains/(losses) arising on:	£	£
	Revaluation of investments	(61,350)	-

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14 Fixed asset investments

Cost or valuation At 1 January 2025 Additions Valuation changes Reclassified At 31 December 2025 Carrying amount At 31 December 2025 At 31 December 2024 Debtors Amounts falling due within one year: Trade debtors Other debtors	Investments £ 3,832 2,000,000 (61,350) (3,832) 1,938,650 1,938,650 3,832 2025 2024 £ £ 1,850 1,873 137,608 - 139,458 1,873	Investments £ 3,832 2,000,000 (61,350) (3,832) 1,938,650 1,938,650 3,832 2025 2024 £ £ 1,850 1,873 137,608 - 139,458 1,873
		1,938,650
		1,938,650
		3,832
		2024 £ 1,873 -
		1,873

15 Debtors

• 17 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors Accruals and deferred income	2025 £ 15,031 7,500 22,531	2024 £ 8,915 -
		8,915

17 Endowment funds

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

	At	1 January	Incoming	Transfers	At 31
		2025	resources		December
					2025
		£	£	£	£
Permanent endowments
AS Horne Trust		506	-	-	506
JV King Memorial Fund		4,267	132	-	4,399
		4,773	132	-	4,905
Previous year:	At	1 January	Incoming	Transfers	At 31
		2024	resources		December
					2024
		£	£	£	£
Permanent endowments
AS Horne Trust		-	-	506	506
JV King Memorial Fund		-	-	4,267	4,267
		-	-	4,773	4,773

• 18 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

18 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At Bell Fund Capital reserve CCLA Church of England Deposit Fund Charitable Giving Children's Work Choir and Organ Fund Donations in Memory Fabric Fund Friends of St Margaret Kitchen Fund Thirtle Bequest	1 January 2025 £ Incoming resources £ Resources expended £ - 60 - 997 - (385) 4,943 - - 49 41 - 55 1,360 (1,360) 759 - - 2,719 - - 70 - - - - (4,658) 8,048 71,753 (4,410) 7,050 - (11,343) 1,800,000 959,162 (6,600) 1,824,690 1,032,376 (28,756)	Transfers £ Gains and losses £ At 31 December 2025 £ - - 60 - - 612 - - 4,943 - - 90 - - 55 - - 759 - - 2,719 - - 70 - - (4,658) (4,293) - 71,098 4,293 - - - (61,350) 2,691,212 - (61,350) 2,766,960

• 19 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

18 Restricted funds Previous year: At AS Horne Trust Bell Fund Capital reserve CCLA Church of England Deposit Fund Charitable Giving Children's Work Choir and Organ Fund Donations in Memory Fabric Fund Friends of St Margaret JV King Memorial Fund Kitchen Fund Lighting Appeal Thirtle Bequest	1 January 2024 Incoming resources Resources expended £ £ £ 410 96 - - 997 - 4,943 - - - 49 - 45 898 (888) 759 - - 3,004 - (285) 70 - - 565 3,000 (6,128) 13,689 172 (5,813) 4,219 48 - 7,050 - - - 3,690 (3,690) - 1,800,000 - 34,754 1,808,950 (16,804)	(Continued) Transfers Gains and losses At 31 December 2024 £ £ £ (506) - - - - 997 - - 4,943 - - 49 - - 55 - - 759 - - 2,719 - - 70 2,563 - - - - 8,048 (4,267) - - - - 7,050 - - - - - 1,800,000 (2,210) - 1,824,690	(Continued) Transfers Gains and losses At 31 December 2024 £ £ £ (506) - - - - 997 - - 4,943 - - 49 - - 55 - - 759 - - 2,719 - - 70 2,563 - - - - 8,048 (4,267) - - - - 7,050 - - - - - 1,800,000 (2,210) - 1,824,690
			1,824,690

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At General funds Previous year: At General funds	1 January 2025 £ Incoming resources £ Resources expended £ 10,758 115,639 (67,936) 1 January 2024 Incoming resources Resources expended £ £ £ 18,542 60,296 (65,517)	Transfers £ At 31 December 2025 £ - 58,461 Transfers At 31 December 2024 £ £ (2,563) 10,758

• 20 -

ST MARGARET'S CHURCH DRAYTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

20 Analysis of net assets between funds

Unrestricted Restricted Endowment funds funds funds 2025 2025 2025 £ £ £ At 31 December 2025: Investments - 1,938,650 - Current assets/(liabilities) 58,461 828,310 4,905 58,461 2,766,960 4,905 Unrestricted Restricted Endowment funds funds funds 2024 2024 2024 £ £ £ At 31 December 2024: Investments - 3,832 - Current assets/(liabilities) 10,758 1,820,858 4,773 10,758 1,824,690 4,773	Total 2025 £ 1,938,650 891,676
	2,830,326
	Total 2024 £ 3,832 1,836,389
	1,840,221

21 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).

22 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Fair value gains and losses on investments Movements in working capital: (Increase) in debtors Increase in creditors Cash generated from operations	2025 £ 990,105 (67,380) 61,350 (137,585) 13,616 860,106	2024 £ 1,786,925 (308) - (1,873) 8,915
		1,793,659

• 21 -