Annual Report and Accounts 2019
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Sandridge PCC Annual Report and Accounts for the year ended 31 December 2019 St Leonard’s Church, Sandridge. Reports: 1. Administrative Information 2. Structure, Governance and Management 3. Objectives and Activities 4. Achievements and Performance 4.1 Church Attendance 4.2 Review of the Year 4.3 Financial Review 4.4 Charities 5. Reserves Policy 6. Risk Analysis 7. Independent Examiner
Accounts : Independent Examiner’s Report to the Sandridge PCC Statement of Financial Activities (SOFA) Balance Sheet Notes to the Accounts
1. Administrative Information
St Leonard’s Church is situated in the village of Sandridge, Hertfordshire. It is part of the Diocese of St Albans within the Church of England. The correspondence address is The Vicarage, 2 Anson Close, Sandridge. The Parochial Church Council (PCC) is a charity excepted from registration with the Charity Commission. Members of the PCC who have served since the last APCM are:
Incumbent: Vacancy sc, fc, bc Churchwardens: Jenny Dundon sc, bc Anne Peck sc, fc, sg Churchwarden Emeritus: Roland King Representatives on Christine Nutton the Deanery Synod: Vivian Nutton Sarah Myers sg
Elected members: Ros Adlard Tony Adlard Carolynn Boucher Duncan Brown Chairman/Treasurer sc, fc Patsy Cann Marian Fooks Mike Fooks Peter Hyde Book-keeper/Electoral Roll sc, fc Philip Moores Katrina Strange Kathleen Tilney Secretary sc, sg Non-PCC Ruth Murphy fc Caroline Williams bc Barry Reeves bc Revd. Kate Daymond Assistant Curate fc, sc, bc, PCC (observer)
2. Structure, Governance and Management The method of appointment of PCC members is set out in the Church Representation Rules. All Church attendees are encouraged to register on the Electoral Roll and stand for election to the PCC. The Standing Committee (sc-5 members) is the only committee required by law and has the power to transact the business of the PCC between its meetings, subject to any directions given by the Council. The members of the Standing Committee are the Incumbent, both churchwardens, the Secretary, the Treasurer and the Book-keeper. Other committees are established by the PCC from time to time. In 2019 there were two such committees - the Finance Committee (fc-4) and the Buildings Committee (bc-3). Three members are responsible for Safeguarding (sg). The PCC has complied with the duty to have ‘due regard’ to the House of Bishops’ guidance in relation to safeguarding.
3. Objectives and Activities The PCC 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 Leonard’s Church, Sandridge and the nearby graveyard.
4. Achievements and Performance
4.1 Church attendance There were 106 parishioners on the Church Electoral Roll at the end of 2019 (111 at end of 2018). 55 were resident in the parish and 51 were non-residents (67 and 44 for 2018). For the 2019 APCM a new Electoral Roll was created (every six years). The average weekly attendance, counted during October 2019 was 114 (2018:148). These figures include children and adults and two harvest services for the local school. 4.2 Review of the Year After the departure of the Rev. Em Coley in January 2019, St Leonard’s was in vacancy. A review of the year for 2019, therefore, can only be a vote of unequivocal thanks. Firstly, thanks to all of the clergy who were so generous with their time that we were able to run two services a week for the vast majority of the year, honour our commitment to hold five weddings and baptise seven children. St Leonard’s was even able to provide funeral and burial services as well as intern ashes and hold memorial services. Whilst a team of local curates, vicars, and even archdeacons came to our aid, we were blessed with the regular support of Father Grant Holmes, Rev. Peter Crumpler, Rev. Canon Richard Leslie and, particularly, Rev. Dr. Callan Slipper, without whom Christmas services quite simply would not have happened. To all of our visiting clergy – a heartfelt thank you.
Thanks, however, must also go to the army of people from our own congregation who all shouldered a little more, and sometimes a lot more, during the year. From writing and printing pew sheets, to organising hymns; from leading Craft Church and taking on the leadership of the Christian Fellowship, the endless energy and enthusiasm of the St Leonard’s congregation was without doubt pivotal to ensuring that our church not only survived, but continued to thrive throughout 2019. Summer and Christmas fetes took place, we continued to provide home communion to those members of our parish who could not make it to church, and yet again, the flower arrangers surpassed themselves with their skill in transforming our beautiful church during the Harvest Flower Festival.
As the year drew to a close, we began to look forward to the arrival of our new vicar. However, God had other things in mind for us, and it was not to be. As we began 2020, we were able to look forward to working with Rev. Kate Daymond as our assistant curate over six months. What will happen next, we don’t yet know. However, the ongoing commitment and spirit of our wonderful congregation, coupled with God’s love and a healthy sense of humour, leads us ever forward confident in the words that ‘with God, all things are possible.’ As churchwardens, Jenny and I would like to say thank you to you all. Thank you for not minding when it went wrong, thank you for saying yes when we asked, or just saying yes, without us ever needing to ask. Thank you that even without a vicar, we were able to sustain St Leonard’s as the warm, welcoming and loving Christian community it has always been. Thank you. Anne Peck, Churchwarden During the year, the usual maintenance activities were carried out – fire extinguishers, lightning conductors, organ, etc. Three more stained glass windows were refurbished. An inspection of the roof and spire was carried out using a drone. This showed several matters that need attention. In 2020 we will have a Quinquennial Inspection by our architect, which will identify the work that needs doing.
The Wheathampstead Deanery Synod met three times in the year under the leadership of the Rural Dean, the Revd. Richard Banham (Rector of St Helens, Wheathampstead) and the lay chairman, Mr Jim May. The first meeting was in March at All Saints, Harpenden. It featured a thought-provoking and worrying presentation “Don’t bet on it” by Bishop Alan, a summary of which appeared in the Sandridge Parish Magazine for May.
The second meeting in July at St Mary’s, Redbourn, focused on Vocations. The Revd. Charles Burch, our Diocesan Vocations Officer, spoke of the challenge we face. 61% of clergy are 50+. 100 or more will retire in the next 10 years. In response to this we aim to become a net exporter of ordinands, not a net importer, by recruiting younger ordinands (as well as older ones). The target is to go from 16 to 20 per annum. That is 1 per Deanery per year….every year. Our third meeting in November, at St Leonard’s, Flamstead, included a presentation from Phil Bryson, the Lay Ministry Officer for the Diocese and Annie McTighe from the ‘Reaching New People’ team. They spoke about the various training options available for lay people, including training for Readers, Lay Leaders of Worship and Lay Pioneers. At present, Wheathampstead Deanery is at the top end of the league table for producing Readers and LLWs. The Deanery Ascension Day service was held at St Nicholas, Harpenden, and the Deanery Choral Evensong was held in St John’s, Harpenden. Christine Nutton, Deanery Synod We are extremely grateful to Church Wardens Anne Peck and Jenny Dundon for the fantastic amount of energy, hard work and care towards the life and mission of St Leonard's. They have made a huge investment in a year of uncertainty and exceptional challenge for which we are very grateful. Assistant Curate, Rev Kate Daymond 4.3 Financial Review In 2019 the accounts show an overall net deficit of £3,861, compared with a net surplus in 2018 of £6,393. This deficit is after taking into account the strong performance of our investments during 2019, which generated net gains of £4,640 (2018: gain of £371). The fluctuation in return on investments is largely outside of the PCC’s control from year to year, and it is helpful to look at the net result before return on investment. This shows a rather stark picture – a net deficit in 2019 of £8,501, £14, 523 worse than the net income of £6,022 in 2018. The biggest element of this difference relates to the drop in substantial one-off donations to church funds (down from £19,816 to £8,058):
Taken together, these account for £10,170 of the net decline of £11,758 in income from such donations. Looking more broadly at the financial outcome, the overall picture is that we have retained strong control over expenditure, with lower spend in most of the expenditure headings in the Statement of Financial Activities (total expenditure excluding grants to charities, wedding/funeral-related expenditure and vacancy/vicarage costs is down by some £2,900). This has been helped by a £1,542 reduction in the Parish Share that we pay to the Diocese (a direct effect of not having had a vicar for much of 2019). Unfortunately although our expenditure is lower, our regular sources of income are also significantly down. Planned giving and ad hoc collections at services, together with the associated Gift Aid, are down by £3,843 compared with 2018. This includes the impact of losing a small number of very generous regular givers. A lower number of weddings and funerals held in the church in 2019 means that surpluses we retain from these are also down, by £1,739. As I noted in my report last year, the PCC believes it is important that the generous legacy left by Bob Warby is not to be used to cover the routine running costs of the church (the separate legacy left by John Blandford actually prohibits its use in this way). However, if we continue to experience net deficits in future years, this is exactly what will start happening in a few years time. The PCC will continue to exercise strong control over expenditure but, if its ambition to balance the books on a day to day basis is to be achieved, there is also a need to increase income from giving and other sources to get the church’s finances back onto an even keel. Duncan Brown, Treasurer.
4.4 Charities
A total of £1,337 donations was made to other charities during 2019 (2018: £2,039). These donations resulted from PCC funds and from special collections by the church.
5. Reserves Policy
The PCC considers that it requires a minimum working cash balance of £10,000 to enable it to meet its day to day commitments, to pay its Parish Share within the quarter and to provide a reasonable buffer against fluctuations in income from occasional services.
Short term funds are held in the PCC’s current account which was with Lloyds Bank during 2019. Longer term funds are held on deposit with the CBF Church of England Deposit Fund and the CBF Church of England Investment Fund. The Investment Fund was opened in December 2011 in order to achieve the better long term returns expected from a fund invested in worldwide stock markets. In selecting this fund the PCC took into account ethical investment considerations. In accordance with the Trustees Act 2000, the PCC continues to review its investment strategy to ensure we have an optimal balance between risk and return. In 2018 the church received a legacy of £180,000. In 2019 £75,000 was transferred to a CAF Saver Account and another £75,000 to a Virgin Money Charity Deposit in order to improve interest earned and to safeguard the assets under the Financial Services Compensation Scheme.
6. Risk Analysis
As part of a General Risk Assessment, the PCC has conducted a review of the major risks which impact on activities within the Church. As part of this general risk assessment, specific risk assessments have been produced on matters relating to visitors and events in church, use of the bell tower, changing light bulbs, children's activities, candlelit services, safe handling of money and lone workers. All of these have been reviewed.
7. Independent Examiner
The Independent Examiner was Mr DGF Kay B.Com, FCA
On Behalf of the PCC
--------------------- ------------------ ------------------ Anne Peck Jenny Dundon Kathy Tilney Churchwarden Churchwarden Secretary
Date : Date : Date :
Independent Examiner’s Report to the trustees of St Leonard’s Church, Sandridge, Parochial Church Council
I report on the accounts for the year ended 31 December 2019 which are set out in pages 9 to 17.
Respective responsibilities of the Trustees and Independent Examiner
As trustees of the charity, the members of the PCC are responsible for the preparation of the accounts. They consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
Basis of Independent Examiner’s Statement
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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the 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 accounts 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
have not been met; or
Don GF Kay B.Com, FCA 1, Chancery Close St Albans AL4 9YF
Date Statement of Financial Activities For the year ended 31 December 2019
The notes on pages 11 to 17 form part of these accounts Sandridge PCC Balance Sheet as at 31 December 2019
The notes on pages 11 to 17 form part of these accounts Approved by the PCC on Sunday 29th March 2020 and signed on its behalf by: -------------------- -------------------- -------------------- Anne Peck Jenny Dundon Duncan Brown Churchwarden Churchwarden Treasurer
Sandridge PCC Notes to the Financial Statements For the year ended 31 December 2019
1. Accounting Policies
The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 and the Charities (Accounts and Reports) Regulations 2008 together with applicable accounting standards and the Charities SORP (FRSSE) 2015. The financial statements have been prepared using the Accruals basis and historical cost convention except for the valuation of investment assets, which are shown at market value.
General funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application on the general purposes of the PCC. Funds designated for a particular purpose by the PCC are also unrestricted. The accounts include all transactions for which the PCC is responsible in law. They do not include the accounts of church groups which owe their main affiliation to another body or those that are informal gatherings of church members. Statutory fees collected by the PCC on behalf of the incumbent are also excluded. Permanent endowment income funds, which are held and administered by St Albans Diocesan Board of Finance for the benefit of St Leonard’s Church, are excluded from the Statement of Financial Activities and the Balance Sheet. Details of these funds are shown in Note 13 of these accounts.
Collections, planned giving and donations are recognised when received by or on behalf of the PCC. Income tax recoverable on Gift Aid donations is recognised when the income is recognised. 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 an inflow of economic benefit is probable. Fees chargeable by the PCC for occasional services are accounted for at the date of the relevant service. In particular deposits received for weddings to be held in the forthcoming year are excluded from Incoming Resources and are shown as a creditor in the Balance Sheet. Funds raised by the church magazine, the sale of publications and fund raising events are accounted for gross. Interest is accounted for when due and payable. Interest on deposits with the Central Board of Finance is credited to the fund to which it relates. Interest on bank deposit accounts is credited to General Funds. Realised gains or losses on investments are recognised when the investments are sold. Unrealised gains or losses are accounted for on revaluation of the investments at the year end.
Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC. The diocesan parish share is accounted for on an accruals basis. Any parish share unpaid at the year end is provided for in these accounts as an operational (though not a legal) liability and is shown as a creditor in the Balance Sheet. Other expenses are accounted for on an accruals basis. The PCC considers that it has a binding obligation to reimburse any expenses reasonably and properly incurred by the incumbent in relation to her work within the parish.
Consecrated and beneficed property of any kind is excluded from the accounts by s.96(2)(a) of the Charities Act 1993. No value is placed on movable church furnishings held by the churchwardens on special trust for the PCC and which require a faculty for disposal.
Amounts owing to the PCC at the year end in respect of fees or other income are shown as debtors less provision for amounts that may prove uncollectable.
2. Incoming Resources
2.1 Income from Donors
2.2 Other Voluntary Income
The Friends of St Leonard’s contributed £3,570 in 2019 (£5,000 in 2018) to the refurbishment of some of the stained glass windows in the church. In 2018 a further amount of £5,740 was received from the Bob Warby legacy and £3,000 was received in respect of a legacy from John Blandford. The Parish Council gave £2,000 (2018 £2,000) for the upkeep of the cemetery.
2.4 Income from Fund Raising
2.5 Investment Income and Gains Income from investments relates to interest receipts from the Central Board of Finance and the PCC’s deposit accounts totalling £1,023 (2018: £1,096) and unrealised gains on the market value of funds invested in the CBF Church of England Investment Fund of £4,640 (2018: £371). Total £5,663 (2018 £1,467).
3. Resources Expended 3.1 Costs of Operating Activities
Vacancy costs were £343 for expenses for visiting clergy and accommodation for a prospective new vicar. Vicarage costs were £914 for gas and electricity and the start of re-decoration. The PCC has met the cost of employing a contractor to maintain the cemetery. Grants from the Parish Council covered £2,000 of these costs. Costs relating to weddings, funerals and monuments include the relevant statutory fees payable to the Diocese (see note 12). Magazine costs were printing the 12 monthly issues (see note 10) Maintenance & Repairs – items more than £300 : 2018 £516 Kitchen worktops; £7,010 stained glass; £618 Roof alarm test; £432 Electrical test; £960 Cemetery tree clearance. 2019 £637 Roof alarm test; £7,140 stained glass; £500 drone roof inspection.
3.2 Church Management and Administration
3.3 Costs of Fund Raising
3.4 Grants to Charities Details of charity collections and grants are shown in Page 6, paragraph 4.4 of this Report. 4. Staff Costs The PCC does not have any employees. During the year, the PCC engaged the services of an organist, whose total remuneration was £1,320 (2018: £1,320). 5. Debtors
6. Short term deposits
Although long-term investment returns should be higher than the deposit rates, the return on the Investment Fund is linked to international stock markets so the return in any one year is variable and could be negative. During 2017, the church was left a legacy of £180,000, which was transferred to the Deposit Fund. In 2019 £75,000 was transferred to the CAF Saver Account and £75,000 to the Virgin Media account. Interest on the Virgin Money deposit account is earned on a daily basis, and added to the account twice a year. Interest on the CAF Saver account is earned and credited at the end of the twelve month fixed term of the account. No withdrawals from this account are permitted until the end of the fixed term.
7. Cash at bank and in hand
8. Liabilities: Amounts falling due within One Year
The Parish Share for both 2019 and 2018 was paid in full during the relevant year.
9. Fund Details
The PCC maintains the following funds:
The supplementary analysis shown in the following Notes 10, 11 and 12 is purely for information and does not form part of the prescribed format for presentation of the accounts.
10. Magazine
ENA Ltd. donated £750 in 2018.
11. Fund Raising Activities
12. Funerals, Weddings, Baptisms and Statutory Fees to the Diocese
Included in the number of funerals are 13 (2) interment of ashes services conducted at St Leonard’s and 1 (2) cremations. In addition, in 2019, the church also carried out 6 (11)
baptisms for which no fees are due to the Diocese. All fees due have been paid.
13. Related Party Transactions
Typically for a small church like St Leonard’s some items of expenditure on goods and services procured for the benefit of the church and PCC are incurred by individuals and then reimbursed from PCC funds. These include expenses of any clergy, cash withdrawn to pay expenses relating to weddings and other sundry items. Details of amounts relating to goods and services procured in this way are shown below where the individuals concerned are related parties, which generally covers the clergy, members of the PCC and (if applicable) their spouses/partners and dependents. All of the amounts shown are accounted for within the relevant expenditure category in these accounts. In all cases the proper procedures for approving expenditure in advance, and for the authorisation of payments by two separate individuals as laid down and approved by the PCC, have been followed.
Amounts paid for reimbursement of expenses to the Vicar and Associate Minister in 2018 and the Vicar in January 2019 (vacancy for the rest of the year) : 2019 £89 (2018 £1,969)
Amounts paid to lay PCC members for reimbursement of expenses: 2019 £3,235 (2018 £3,094)
14. Funds Not Included in These Accounts The following permanent endowment income funds are held and administered by St Albans Diocesan Board of Finance for the benefit of St Leonard’s Church. Both are restricted funds and are excluded from the Statement of Financial Activities and the Balance Sheet.
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