The church is registered as a charity (no. 1133917) and the PCC (as Trustees) are responsible for ensuring that the charity remains financially viable and that the funds are used for the intended purposes of the charity.
As Parish Treasurer, my job is to monitor the income and expenditure, ensure that the Restricted and Designated funds are correctly used, and report the current state of the accounts to the PCC and the parish at large.
Financial Position to end September 2020:
In summary, the finances of the Parish are healthy considering the impact of the COVID-19 crisis. Income is down significantly (about 28%), but we have been able to manage expenditure so that it has reduced by a similar figure. The outcome is that there is now a small deficit (~£1000).
The finances have continued to be impacted by the COVID-19 crisis. Income has been reduced in several areas: plate giving, the letting of church buildings, coffee bar takings and wedding fees. The exercise to contact each person that donates by envelope has produced good results with some switching to standing order, and others sending in a monthly envelope. The main feature of the income side is that regular giving has held up very well, with no reduction in the level of monthly receipts since the start of the year.
On the expenditure side, there have been savings from furloughing some staff, holding off from doing building repair and maintenance, not printing communications where we have switched to online, and reducing service costs like music.
Income is 19% below budget at £224,138. Expenditure has seen an equivalent reduction to £225,214 thereby showing a small deficit of £1,076.
It is expected that the deficit will rise to £5-10,000 by the end of the year as we have increased use of the buildings and the associated heating and lighting costs. In recent years, we have been in the fortunate position of running a moderate surplus which has been accumulated in the reserves. The proposal is to use those reserves to cover the deficit in 2020.
Budget for 2021
The budget for 2021 is currently being formulated ready for approval at the PCC in December. As I am sure you can appreciate, it is proving difficult to forecast the full financial impact of the virus on the life of the Parish next year.
At this stage, however, I anticipate that the Parish will have a larger deficit for 2021 than that forecast for the end of 2020. I will send out a further communication in the New Year once the budget has been finalised and our plans for addressing the deficit have been developed.
2019 End of Year Accounts - (The full report can be downloaded HERE)
In April, the PCC approved the accounts for the end of 2019. They will be presented to the APCM on October 12th.
2019 proved a magnificent year! You, the parishioners, proved remarkable. Not only did you contribute to a surplus on the General Fund and an increase the value of the Restricted and Designated funds, but you also pledged almost £100,000 to support the ‘Building for the Future’ programme.
The Balance Sheet shows that Net Assets have risen by just over £55,000 to £2,176,918 (the majority of which is held as property at a value of £1,765,000). The increase of £55,000 is made up of:
a) £3,405 in the General fund
b) £26,531 in Designated funds
c) £25,161 in Restricted funds
Income was up from £513,00 to over £606,000. However, the majority of the increase was in the money donated to the special funds.
Expenditure rose from £471,000 to over £554,000, mainly due to private donations made to our mission partners.
The value of the parish assets differed little as the revaluation of the property showed no increase. Investments and Debtors showed small increases of just under £3,000 in each case.
Staff costs rose by just over £7,000 because we recruited an assistant to the Youth and Children’s Minister.
The Church Repair Funds (CRFs) were used to fix the car park at St Philips (£3700) and take down the trees at St saviours (£9,800)
The house at 12 Salisbury road was rented out for the whole year. The one at 14 Salisbury Road was let in the 4th Quarter after the curate (Wendy Carr) moved to the Associate Vicar’s house at 13 Dry Hill Park Crescent. This meant that over £30,000 could be transferred to the Repair fund to support the future maintenance of the houses and the church buildings (over and above the CRFs), and to avoid repeated calls upon the parishioners for money to support building projects.
The Mission Action Group were able to distribute over £28,000, of which 80% was given to the Mission Partners and 20% to other charities and causes – see list on Page 20 of the accounts.
Les Naylor, Parish Treasurer - email@example.com