APCM Annual Report and Financial Statements

8/7/2019 APCM Annual Report and Financial Statements

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St James Church

Parish of Finchampstead

Deanery of Sonning

Diocese of Oxford

The Parochial Church Council (PCC) presents its Annual Report and FinancialStatements for the year ended 31 December 2010.

St James ChurchChurch OfficeManor HouseChurch LaneFinchampsteadBerkshireRG40 4LUTel: 0118 973 [email protected]

Registered Charity (No 1130075)

CONTENTS1. Annual Report of the Parochial Church Council (Trustees Report) Page 2 - 72. Independent Examiners Report Page 83. Statement of Financial Activities (SOFA) Page 94. Balance Sheet Page 105. Notes to Financial Statements Page 11 - 16


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St James Church FinchampsteadTrustees Annual Report for the year ended 31 December 2010

Charity Number: 1130075 Page: 2 21-Mar-11

1. Trustees Annual ReportAdministrative InformationFinchampstead Parochial Church Council is the governing body for St. James Church, Finchampstead.The church is situated at Church Lane, Finchampstead, Wokingham, Berkshire, RG40 4LU and is inSonning Deanery in the Diocese of Oxford within the Church of England.

The PCCs principal bankers are CAF Bank Ltd.The independent examiner is Karen Symons FCA, Willow Corner, 7 Ackrells Mead, Little Sandhurst,Berkshire GU47 8JJThe Parochial Church Council (PCC) is a registered charity. no 1130075 and all its members(elected, ex officio and co-opted) are now Charity Trustees registered with the Charity Commission.Members of the PCC are generally either ex-officio or elected by the Annual Parochial Church Meeting(APCM) in accordance with the Church Representation Rules. Under the Synodical GovernmentAmendment Measure 2003, the elected places come up for election on a three year cycle andmembers may stand for re-election. If anyone stands down early, a replacement fills the remainder of the three year term, to maintain the three year rotation. Three groups have been established, with thoseto replace members standing down early being decided by lot after the required total number havebeen elected.

The three groups are now designated A, B & C below as follows:Group A - elected to APCM 2011.Group B - elected to APCM 2012Group C - elected to APCM 2010 and 2013.Deanery Synod representatives are elected for 3 years (at present to 31/05/2011) and become exofficio members of the PCC.The Churchwardens are elected annually at the Vestry Meeting preceding the APCM and, under theChurchwardens Measure 2001, may be re-elected up to a maximum of six consecutive years served.The churchwardens are admitted to office by the bishop between the APCM and 31st July each year but take up their place on PCC immediately after election. A retiring churchwarden continues in officeuntil the successor is admitted to office.The Associate Priest is automatically part of the PCC. Licensed Lay Ministers may be part of the PCCbut Dr Keith Atton does not wish to be so.

During the year the following served as members of the PCC (Trustees):-Incumbent : Rev. Dr Richard Warden (Chairman) to 31 July 10 then Vacancy Associate Priest : Rev. John Edwards (NSM)Churchwardens : Mrs Nicky Alder (served continuously since APCM 2008) Mr Ed Sampson (served continuously from APCM 2009)Representatives on the Deanery Synod:Mr. Paul Arscott (Licensed Lay Eucharistic Minister)Mrs Julia ArscottMrs Carolyn Fox (PCC Secretary)Mrs Gill Myall to APCM 10 Mrs Julie Morley from APCM 10 Elected Member:Mrs. Sarah Booth (C)Mr. John Brain (B)Mrs Barbara Brice (C)Mrs. Mary Dewhurst (A)Mr. Maurice Driver (B)Mrs Rebecca Head (B)Mrs. Daphne Lucan-Wilson (C) to APCM 2010 Mr Jonathan Marshall (A)Mrs Kate Meads (A)Mrs. Julie Morley (C) to APCM 2010 Mrs. Gill Myall (C ) from APCM 10 Mr Richard Owen (A)Mr Richard Peat (B) (Lay Vice Chair)


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Mr Andy Witting (Treasurer from 18/05/09 to 24/5/10) (C) to APCM 10 Mr Ian Woolston (C) from APCM 2010 Co-opted Member Mr Don Monk (to APCM 2010 & then from 24/05/10)Mr John Slingsby (from 24/5/10 ) (Treasurer from 24/5/10)

Structure, governance and managementThe PCC is a corporate body formed under the Parochial Church Council (Powers) Measure 1956 asamended. The PCC makes all decisions corporately except that the Standing Committee has delegatedpowers to make decisions between PCC meetings subject to keeping the PCC informed as fully asnecessary.The practical work of the PCC is largely devolved to committees and working groups which report backregularly and bring recommendations for decision to the PCC: (Church Conservation Working Group;Communications, IT and Publicity committee; Conservation Appeal Group; Outreach and Discipleshipcommittee; Fabric & Property; Finance & Stewardship; Good Practice Advisory Group, Worship &Liturgy; Mission & Charity; Pastoral; Social & Fundraising.)The PCC is responsible for all parish finance, including the appointment of a treasurer, and is requiredto ensure that the financial statements are examined by an independent examiner prior to presentationto the APCM.

Objectives and activitiesFinchampstead PCC has the responsibility of co-operating with the Priest-in-Charge, the Rev. Dr Richard Warden until summer 2010, in promoting in the ecclesiastical parish the whole mission of theChurch, pastoral, evangelistic, social and ecumenical and for maintaining this work during theinterregnum.It also has responsibility for the maintenance of the Church, Churchyard, Manor House Flats, ChurchCentre, Hall and associated grounds and 43, McCarthy Way. The mission statement is Given that Godcomes first in everything, make ourselves and others better disciples of Christ.The PCC has, when planning activities, considered the Charity Commissioners guidance on public

benefit and, in particular, the specific guidance on charities for the advancement of religion. A keyfeature of the charity registration was the benefits that St James' provides to the members of the localand wider community. These include: A focus for the Christian spiritual life of the local community. The provision of religious services throughout the Christian calendar and on key occasions in thenation's life. These are supplemented by Baptisms, Marriage services, Funeral services and Burials.Such services of the established Church of England are open to everyone. A sacred place of tranquillity, peace or solitude for spiritual refreshment or personal meditation. Pastoral care for those not able to visit St James'. An enhanced venue for the provision of music and concerts, both religious and secular. Complementary venues for Church related clubs and activities as well as private functions.

Support to the village school, and other non-denominational schools within the local area. A local 'Living Museum' preserving local history for local people and those beyond. Physical access for both the able and the disabled.The parish aims to give 10% of its unrestricted income each year to other organisations involved inmission in the UK and overseas or involved in humanitarian relief and development work.

Charity Trustee Induction and TrainingThe previous process was, pre-election, to remind candidates in the APCM Information Pack that theywould be required to take the role of Charity Trustee seriously and to highlight in the nominationsheets that they should not be disqualified from being a Charity Trustee. The implications of the roleof Charity Trustee were not then explained more fully until those elected were asked to sign theregistration forms. The process has now been considerably strengthened and, pre-election, a full pagepaper setting out 7 Primary Responsibilities of Charity Trustees has been added to the 2011 APCMInformation Pack with additional reference to the Charity Commission publication The Essential


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Trustee: What you need to know. The nomination sheets all remind candidates that they will becomeCharity Trustees and refer them to this Legal Responsibilities paper. Further induction and training willcontinue to be given when registration forms are completed for new PCC members.

Achievements and performance

Church attendanceThe Church Electoral Roll revised for the 2010 APCM saw an increase of numbers to 397 parishioners(2009, 376). The average weekly Sunday attendance, counted during October 2010, was 225 (2009,248). A further 207, mainly children, attended midweek school and Fledgelings harvest services in earlyOctober. The number increased at festivals (Easter Day 2010, 505 (2009, 463)); Christmas Day 2010attendance was 204 after many had attended the Wellington College Chapel midnight service and 648attended the one Christingle service on Christmas Eve which we held at Wellington College Chapel.The short 9.30am Family Services twice monthly are lively and well attended and continue to be aparticular growth area within the church community. A service for the local Church of England Primaryschool is held each half term, either in the church or the school. During the year there were 37baptisms, 4 weddings and 7 funerals, of which 3 were followed by burials in the churchyard. A further 9interments of ashes took place in the churchyard during the year.

Risk Management The PCC recognises its responsibility to assess and manage the various risks to which it is exposed:a) Financial The Financial Management software enables the Treasurer to make regular reports to the PCC and totrack and analyse trends much more effectively. The PCC asks the Finance & Stewardship Committeeto assess the income/expenditure situation and takes appropriate action to ensure its financial stabilityregularly. Control is maintained over cash receipts and cheques over 1000 drawn on the CAFcashaccount require two signatures from a short designated list. All payments via online banking require tobe authorized by a second signatory. 2010 saw the introduction of increased recording of invoicesreceived and paid in order that there is a full audit trail from receiving the invoice to being able toidentify where the invoice is posted in the accounts. All financial data on computer is backed upregularly so that records can be recreated if necessary. Fund balances are in good interest bearingaccounts mainly with the Diocese and CAF.b) Reputational The PCC and its committees oversee all activities that impact on the local population as appropriate.c) Statutory The PCC and Church members in general have a wide range of expertise that is called upon to ensurethat the PCC complies with its legal and statutory duties. One PCC member updates Charity Trusteedetails with the Charity Commission and submits accounts and reports. The Health and Safety advisor,Ian Clements of Quadriga Ltd, appointed in March 05, ended his contract in April 2010 and on 20September 2010 a new contract was signed with Flemming Westphalen of qsuk ltd to supply Health &Safety advice. He is currently reviewing the PCCs documents and processes in order to give up todate advice. In line with the Licensing Of Premises Act, the Church Centre has an EntertainmentLicence. Fire Protection advice has been given by RES, resulting in a review and renewal of fireprotection devices to meet statutory guidelines. A Data Protection Officer has been appointed.d) Operational The PCC takes responsibility for maintaining the fabric of our building, particularly this year through thecompletion of a major conservation project. Trustee Indemnity Insurance is in place for PCC members.Our Insurance policies with Ecclesiastical Insurance are reviewed annually, thanks to the expertise of Peter McBrien. Contractors on Church premises are asked to sign up to a code of conduct, Guidelinesfor the Safety of Contractors on Church Premises(copy in Church Office)and a Policy and Principlesdocument for the safety of volunteers working on the premises is being reviewed by the new Health &Safety Advisor. Its contents had been shared with the Tuesday Working Party. The PCC has a SeriousIncident Reporting Procedure for use by its groups (copy in Church Office). The Pastoral Team now

has a Pastoral Care Guidelines document. Non-PCC members with access to parish records now signa confidentiality statement.


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Review of the Year General In 2010 the full PCC met 9 times, three times as extra meetings to transact a particular item of business(purchase of photocopier, preparation for joint PCC meeting with St Mary & St John and review of theParish Profile). The average attendance over the 9 meetings was very good. The PCC met with theArchdeacon in July to be advised about the coming interregnum, the implications of the DeaneryMission Plan and the processes leading to the appointment of a Rector/Rector Designate and anAssociate Priest. A joint PCC Away Day with St Mary & St Johns PCC in September began theprocess of formulating a joint vision for the two parishes. The Standing Committee met 6 times, oncefor an Away Morning on Leadership & Management, and their minutes were distributed to the wholePCC. The PCC committees/teams (Social & Fundraising; Fabric & Property; Finance & Stewardship;Mission & Charity; Communications, IT & Publicity; Pastoral; Worship & Liturgy; Outreach &Discipleship) met regularly during the year and submitted written reports to each full PCC meeting.These were discussed where necessary, particularly where a decision was required. The ConservationWorking Group also reported to PCC. The Conservation Appeal Group and Good Practice AdvisoryGroup are held in abeyance pending being asked by PCC to undertake tasks.Major items for 2010 The early part of the year was focused on arrangements for taking back the church building from thecontractors following the conservation work, including ordering new hymn books with a bigger range of hymns and purchasing a clavinova to provide more musical styles. In March the Bishop of Oxford re-dedicated the church building at a service largely for the church community. In July a civic service withthe Bishop of Reading started a Festival Week and Flower Festival to invite in the local community,particularly those who had contributed to the Conservation Fund, to see the refurbished building. RevRichard Warden who had announced at the APCM that he was to leave the parish was given a fittingsend-off in July.The 2010 Deanery Mission Plan, agreed in the early part of the year, proposed re-uniting St Jamesparish with St Mary & St John. The process of finding a replacement incumbent and associate priesttherefore involves both PCCs working together. A joint team was set up to produce a Parish Profile bythe end of the year to enable the advertising process to begin. The PCC appointed two Parish

Representatives and resolved not to pursue Resolutions A & B (On women priests).A Friends of St James scheme was agreed by PCC and launched during Festival Week.The decision at the end of 2009 to give the majority of our mission giving to support four charities for three years and engage the congregation with these charities has resulted in several speakers bringingnews to the congregation and a congregational vote to choose a Church Urban Fund project to support.The PCC has contributed to the consultation on the Arborfield Housing Plan and offered to work withthe Council on the provision of church facilities at present lacking.The parish sponsorship of five childrens education in Kimberley, South Africa is on a good financialfooting with oversight of the funds by the Kimberley Diocese. However to strengthen the personal linkwith St Matthews Kimberley the PCC has agreed to send two people to visit in 2011.The Planned Giving Campaign in the autumn was biblically based and during the year there has been afocus on Prayer with a Quiet Day and setting up of a Parents Prayer Group at the Church School.

Financial Review 1 Summary of results for the year 1.1 Total incoming resources during 2010 were 208,100 (2009: 224,871), the drop is represented bya reduction in the restricted funds. The financial year 2010 saw a drop off in the conservation incomewhich accounted for a majority of the difference from 2009 (62,953) v 2010 (24,507). The increase inunrestricted funds, 2010 (183,591) v 2009 (161,918), was principally as a result of the continuedefforts to convert planned giving from envelopes to standing orders together with a further increase inthe value of donations where we are able to re-claim the Gift Aid which lead to a 3,335 increase in thevalue of Income Tax claimed over the year. The middle of the year also saw us able to offer weddingand funeral services again following the conservation work on the church and this generated additionalincome over the 2009 figures.

1.2 Total expenditure in 2010 was 471,307 (2009: 449,226), a majority of the 2010 expenditurecontinued to be from the conservation project (2010: 288,175) and represents over 50% of the totalconservation expenditure. The unrestricted expenditure during the year was 8,083 higher than 2009,mainly from the increase in the parish share (+2,500) along with increases in the running costs of the


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church centre which included the cost of a new PC that was too immaterial to capitalise. Staff costswere higher during the year as there was an overlap in salary costs for the parish administrator role andthe Director of Music was also awarded an increase of 5% during the year. Our church groups havegenerated the same level of income as previous years but have done so while incurring lower costs.1.3 Unrestricted funds as at the year ending 31 st December were 867,754 (2009: 847,335), thisincrease was mainly driven by the revaluation of the PCC Equity Investment (33,000 gain) and therevaluation of 43 McCarthy Way (23,000 gain). The overall gain in investments was mainly offset bythe transfer from PCC General funds to the conservation fund for reasons covered in section 1.4 of thisFinance report. Income from the investment properties continued to supplement the planned givingfrom our generous congregation but there is an immediate need to allocate funds to reinvest into theinvestment properties. To this end the PCC agreed that two designated funds are established torecognise and allow the Fabric & Property committee a fund from which they can draw down for their maintenance program and list of key priorities. During 2010 one of our tenants has fallen behind withtheir rental payments, we have not recognised any provision for this in the accounts. Dividend incomein the year was 2,500 higher than the previous year.1.4 The tail end of our Conservation project warrants separate disclosure in this report as there are stillsome challenges that exist before the project is fully completed. Following the handing over of the sitefrom Farr & Roberts the PCC made a claim to the Listed Places of Worship Grant Scheme (LPW) for the recovery of VAT on Repair work that fell within the project. The claim that was submitted to LPWwas for 23,422 and is still subject to review due to a backlog of processing at the administrators of theLPW grant scheme. The final cost of the project has been recognised in the accounts with the inclusionof the 2.5% retention that is due for payment at the end of March, this accrual for retention cost is10,624 (incl VAT). Due to the nature of the project and the complex work involved in certain areas theconservation project was in a deficit position of 58,982 (including the retention but excluding the VATreclaim from LPW) as at 31 st December. The PCC have decided that the deficit will be reduced byallocating social funds from future events, including net income generated from the Summer Fete. Atransfer of funds from General PCC Funds to Conservation took place on 31 st December, meaning theconservation fund is shown at a small surplus in the year end accounts. The intention is to reverse thistransfer as further conservation income is received.

1.5 In summary the income position has developed well over the year and the expenses have beenkept under control. The additional costs on the conservation project represent a challenge and it isimportant to finalise the VAT position. The series of Sermons on Christian Giving during October havegenerated an uplift in Income in the tail end of 2010 and the start of 2011.

2 Organisation2.1 Treasury Team Thanks are extended to the Treasury Team who have continued to work hardduring the 2010 financial year. The final stages of the conservation project led to additional work andoften difficult bookings within the accounts yet these were managed well. A new system wasimplemented during the year that made it easier to trace invoices through the system, this has reducedqueries and enabled the Treasury Team to understand the monthly financial postings. Special thanksare due to Keith Hunt, Debbie Watthey and Marion Row who continue to support the Treasurer in his

duties.2.2 Finance & Stewardship Committee (F&S) The Committee continued to meet regularly during theyear. Financial responsibility is designated from the PCC to the F&S committee and the committeecontinues to be active in all aspects of church life. Thanks go to all members of the F&S committeewho work hard during the year to provide input into the key financial decisions in respect of our Church.Special thanks should be extended to Robert Alder, our Giving and Gift Aid co-ordinator, who continuesto identify opportunities for planned giving in the church and whose hard work has seen a growth inIncome over the year.

3 Processes3.1 Donation Processes - Robert Alder deserves much credit for the way in which he has run the wholeof our Gift Aid & Giving system. Together with Rev. John Edwards, Robert has encouraged members

of the congregation to move to direct donations through standing order which has reduced the amountof administrative work required in relation to the counting and banking of cash and cheques.The principal routes for planned giving are:- Standing Order direct to the CAF Bank account for Church and Parish general funds;


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Purple Envelopes for regular Giving to Church and Parish general funds; White Envelopes for general ad hoc donations to Church and Parish general funds;

Automation of the donation & giving processes has given us the ability to make more regular gift aidclaims from HMRC, with associated cash flow benefits. A series of sermons were used in late 2010 tocommunicate the financial challenges at St James, and this has seen good early results from our congregation.3.2 CAF Banking / CCLA - Improvements made in 2009 have meant that banking arrangements haveremained largely unchanged in 2010 with ever increasing movement away from the use of cheques toonline payment origination to suppliers and for salary and expenses payments. Online banking,through CAF Banks secure website remains a key element of our day-to-day treasury activities. Wecan view and download information about all CAF Bank accounts, view statements, set up ad hoc andregular payments. This has also contributed to our ability to produce timely month end financialaccounts.3.3 Reserves PolicyAn appropriate Reserves Policy is at present under consideration.

4 Outlook to 20114.1 Parish Share The parish has been advised that the Parish Share for 2011 has increased aboveinflation (+6.58%), taking our overall contribution to the Diocese from 81k to 85k. This is a significantchallenge to manage during 2011. The higher Parish Share, in addition to the VAT increase mean thecost base of the Parish has increased significantly before any additional costs are incurred from theever expanding work of our Church.4.2 Manor House works The F&P committee have effected some minor works during 2010 which areaimed at reducing the work list on the Manor House and the investment properties. There remain somechallenges in identifying the key aspects of work that need to be completed and the F&S committeecontinues to work closely with the F&P committee to ensure that cash is available for the highestpriority elements of work. The two designated funds that have been set aside for F&P works will helpthe F&P committee to plan the work that can be conducted in 2011.4.3 VAT Claim & conservation As previously discussed the LPW VAT claim has not yet beenfinalised. There are likely to be further queries from the schemes administrators. There remains a riskthat the PCC do not receive the full value of the original claim. At the moment any reduction in theclaim value would increase the deficit on the Conservation Fund.4.4 Merger of the parishes During 2011 the formal process of merging the parishes of St James andSt Mary and St John will continue. There are likely to be financial implications as the two parishesmerge and these will require close co-ordination with representatives from St Mary and St John.

Special ThanksThank you to all who support the work of the parish with their time, talents and money. Every gifthowever large or small is very much appreciated.The PCC is particularly thankful to all those who contribute to the running of the church community hereat St James week by week, either with individual responsibilities or as part of a group, team or committee. An amazing amount of time and talent is gifted to the church regularly, supporting churchservices, organizing social events, administration, pastoral care, practical skills etc.

The PCC wishes to thank everyone who contributes in these many ways.

Signed on behalf of the PCCRichard PeatVice Chairman


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2. EXAMINERS REPORT

Financial Statements for the Year Ended31 December 2010

Independent Examiners ReportTo the PCC of St. James Finchampstead

This report on the Financial Statements of the PCC for the year ended 31 December 2010, which are set outon pages 9 to 16, is in respect of an examination carried out in accordance with the Church AccountingRegulations 2006 ('the Regulations') and s.43 of the Charities Act 1993 ('the Act').

Respective responsibilities of the PCC and the examiner

As the members of the PCC you are responsible for the preparation of the Financial Statements; youconsider that the audit requirement of Regulations and section 43(2) of the Act does not apply. It is myresponsibility to issue this report on those Financial Statements in accordance with the terms of Regulations.

Basis of this report

My examination was carried out in accordance with the General Directions given by the Charity Commissionunder section 43(7)(b) of the Act and to be found in the Church guidance, 2006 edition. That examinationincludes a review of the accounting records kept by the PCC and a comparison of the Financial Statementswith those records. It also includes considering any unusual items or disclosures in the FinancialStatements and seeking explanations from you as trustees concerning any such matters. The proceduresundertaken do not provide all the evidence that would be required in an audit, and consequently I do notexpress an audit opinion on the view given by the Financial Statements.

Independent examiners statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in any material respect the requirements

to keep accounting records in accordance with section 41 of the Act; and

to prepare Financial Statements which accord with the accounting records and to complywith the accounting requirements of the Act and the Regulations have not been met; or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of theFinancial Statements to be reached.

Mrs. K. Symons, FCA,Willow Corner 7, Ackrells Mead,Little SandhurstBerkshire GU47 8JJ

Documents

APCM Annual Report and Financial Statements