2022-12-31-accounts

Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Accounting Policies

The Financial Statements have been prepared in accordance with the Charity SORP FRS 102. The financial statements have been prepared on the accruals basis and on the basis of historical cost.

• Restricted and Unrestricted funds. All funds are treated as unrestricted with the following exceptions:

• Specific donations to the Organ Fund and John Cochrane Mission Fund

• Specific donations made to Church Funds for onward distribution to specific charities

• Rector’s Discretionary Fund

The Trustees are operating a Reserves policy whereby unrestricted funds held by the charity will cover ten weeks of unrestricted resources expended. For this purpose, unrestricted funds exclude fixed assets and unrestricted resources expended excludes depreciation. The Trustees believe that this level of reserves would be sufficient to continue operating the charity should there be a significant drop in funding. As at the end of December 2022, unrestricted funds covered 25.7 weeks of unrestricted resources expended and exceed the policy above by 15.7 weeks.

• Accounting for Income.

• Donations are booked to income statement based on the date received.

• Gift aid associated with income is accrued based on the period to which it relates.

• Accounting for Church related organisations. In line with guidance from the NI Charities commission the accounts for 2022 and 2021 include the financial results of the following Church related activities:

• Bellringers

• Bowling club

• Catering committee

• Choir

• Accounts for independent Charities are excluded from the Church accounts.

Going Concern

These accounts have been prepared on a “Going Concern” basis and there are no material uncertainties related to events or conditions that cast significant doubt on the charity’s ability to continue as a going concern.

Statement of Financial Activity

The accounts for 2022 show a surplus in the period of £44.8k, which compares to a deficit of £(49.7)k in 2021. This improvement of £94.5k year on year is driven by an increase in income of £133.1k, partially offset by an increase in overall expenditure of £(36.8)k and a loss in investments of £(0.7)k.

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Statement of Financial Activity for the year ended 31 December 2022

Notes to the Accounts:

1. Incoming Resources

Total Income was £449.4k during the year, which is an increase of £133.1k on 2021. The increase is explained as follows:

• Voluntary income has increased by £137.1k to £413.8k, primarily due to the receipt of a legacy of £122.0k from the late John Cochrane. Standing orders have increased by £8.9k, offset by donations by annual cheque, down £(1.6)k, and Harvest Appeal down £(4.4)k . However, the net of all other donations is up £12.2k.

• Church activities have increased by £5.5k, largely due to Youth and Children’s Church activities, including Family and Youth weekends.

• Activities for generating income are down £(9.8)k, driven by the end of the Job Retention Scheme and there being no insurance claims in 2022.

• Bank interest/fees is up £0.3k.

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Note (1) Incoming Resources

RT: Romania Trip RDF: Rector’s Discretionary Fund JCMF: John Cochrane Mission Fund OF: Organ Fund

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

2. Resources Expended

Overall expenditure at £404.0k has increased by £36.8k compared to the previous year:

• Charitable donations up by £8.8k to £42.1k, due to increase in incoming resources and increase in tithe from 10% to 11%.

• Energy costs have increased by £12.8k.

• Salary and associated costs at £183.1k have increased by £7.9k, driven mainly by annual salary increase and staff turnover. There was no annual salary increase in 2021.

• Diocesan costs have decreased by £2.8k.

• Maintenance costs at £18.9k have decreased by £2.9k.

• Other total of all other costs has increased by £13.0k, largely due to increase in Church activities following COVID restrictions, increase in insurance and introduction of Family and Youth weekends.

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Note (2) Resources Expended

RT: Romania Trip RDF: Rector’s Discretionary Fund JCMF: John Cochrane Mission Fund OF: Organ Fund

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Note (3) Donations

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Balance Sheet at 31[st] December 2022

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Note (4) Reconcilation of Tangible Fixed Assets

• Treatment of fixed assets

• Heritage Assets: The following assets are treated as Heritage assets in line with the guidance of the SORP.

  • Church land and building and contents including the two organs

  • Parish Room

  • Maginnis Room

The original value of these assets is not valued or depreciated in the financial statements. However new investments in these assets post 2016 which increase the life of the assets have been capitalised.

• Assets to the value of less than £1,000 are not capitalised but are written off in the year of purchase.

• All remaining assets are capitalised and included in the Balance Sheet.

• In order to achieve this a one off exercise was undertaken in 2016 to create an asset register.

• Depreciation has been calculated using the straight-line method based on the following asset lives:

• Buildings 50 years

• Plant 10 years

• Fixtures & Fittings 10 years

Depreciation in the year was £60.8k, which is consistent with the trend in recent years. Over the last 5 years the total capital expenditure is £30.2k, which compares to depreciation of £300.0k .

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Note (5) Debtors & Creditors

Note (6) Reconciliation of Funds

Select Vestry agreed to transfer £13.4k from Unrestricted funds to set up John Cochrane Mission fund, and to transfer £1.5k to support Rector’s Discretionary fund.

Note (7) Cash and Cash Equivalents

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Note (8) Investments

Investments at 31 December 2022 is made up of:

£  RB General Unit Trust 8,679

Note (9) Related Party Transactions

• Trustees remuneration and benefits

• Two trustees have received remuneration in the period for services provided to the Parish. These are: Canon Bryan Follis and Rev Jonathan Brown for the period January – December 2022.

• The total cost incurred is:

		£
	Stipend	48,951
	Locomotory allowance	9,386
	Expenses of office	951
	Pension	13,838
	Curates rent allowance	2,143
	Employers NI	6,533
	Total Cost	81,802

 Trustees expenses

• Two trustees have claimed expenses during the period, which relate to repayment of costs incurred in support of Church activities.

• The total cost incurred was £4,122

 Trustees other

• One trustee received a leaving gift of £100 in recognition of long term service, and the curate received a leaving gift of £2,500 from the Parish.

 Auditor’s remuneration

• No payment was received by the Independent Examiner reviewing these accounts.

There were no other related party transactions during the year that required disclosure.

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Annual Accounts for Hillsborough Parish Church Charity Commission of Northern Ireland No. 101674 Notes to the Financial Statements for the year ended 31[st] December 2022

Note 10: Staff Costs

• No individual employee received benefits (excluding pension) of more than £60k during the period.

Cash Flow Statement for the year ended 31[st] December 2022

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