THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF ST MICHAEL LE BELFREY WITH ST CUTHBERT, YORK. (registered charity no.

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1 THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF (registered charity no ) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 HPH Chartered Accountants 54 Bootham YORK YO30 7XZ

2 ANNUAL REPORT & FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2016 CONTENTS Page(s) Annual Report of the Parochial Church Council 1-8 Independent Auditors Report 9-10 Statement of Financial Activities 11 Balance Sheet 12 Cash Flow Statement 13 Notes to the Financial Statements 14-22

3 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2016 The Parochial Church Council (PCC) has pleasure in presenting its Report together with the Financial Statements for the year ended 31 December The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Church Accounting Regulations 2006 and UK Generally Accepted Practice as it applies from 1 January The financial statements have been prepared to give a true and fair view and 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 Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The PCC is a Public Benefit Entity. OBJECTIVES AND ACTIVITIES St Michael le Belfrey Church Council (PCC) is responsible, with the Vicar (Matthew Porter) for good governance of the Church. Over the last 12 months the church - often known as The Belfrey - has continued to develop its ministry and mission, aiming to be serving God s transformation of the North. The major theme for 2016 was Awakening, calling the church to pray for and expect an awakening in creativity, prayer, worship in the groups and congregations and further afield in our city and region. During 2015 the PCC agreed 4 strategic emphases to help prioritise and plan more effectively and these remained the focus for These are: making disciples (evangelism); nurturing disciples (discipleship); developing leaders (leadership) and planting churches (church planting). The values of generosity, simplicity, festivity and humility have continued to be highlighted and we have taught that a community living a Christ-centred life is the best way to live and adds enormous value to society. When considering the objectives of the charity the trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit. This report will highlight some of the public benefit of St Michael le Belfrey Church. ACHIEVEMENTS AND PERFORMANCE Church attendance St Michael le Belfrey has a simple structure of congregations and groups. In April 2016 G2 planted a new congregation called G2 Central which meets each Sunday morning at Central Methodist Church and is attracting around 25 young adults each week. So we then had 6 congregations. Those meeting in St Michael le Belfrey Church included Sundays at 9am, 11am and 6pm and Wednesdays at 12.30pm. 1

4 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2016 ACHIEVEMENTS AND PERFORMANCE - continued Church attendance - continued Those meeting elsewhere in the city included G2 Central (Sundays at 10am) and G2 (Sundays at 3.45pm). Of the congregations meeting in St Michael le Belfrey Church in 2016 we had approximately 40 groups, known as Belfrey Groups, with other Groups meeting through G2. At the Annual Meeting 2016 there were 652 people on the church electoral roll. The usual weekly attendance in 2016 was around 550 for congregations meeting in St Michael le Belfrey Church and 211 at G2 and G2 Central, making a total of 761. Baptism, and affirming Baptismal Vows are important to us as a public mark of following Jesus Christ. Over the course of the year we baptised 6 children, 14 adults and affirmed the Baptismal Vows of 20 adults. Review of the year We recognise the Christian church is the only organisation that exists primarily for the benefit of non-members. So we take mission seriously, aiming to use all our resources to maximise public benefit. Community The Clergy and Staff Team have continued to serve not just the people of The Belfrey but also the wider community. We have held outreach cafes at Easter and Christmas and provided a city centre hub of refreshments and support for supporters of the Yorkshire Marathon in October. We have continued to serve homeless and more vulnerable people through Never Give Up, serving a weekly hot meal and through our backing of Bundles of Joy (a charity providing practical support for parents of young children) and Restore (a charity providing homes for those previously homeless). Our Youth and Children s Centre (The Storehouse) provided youth groups and support in 2016 for a wide range of young people inside and outside of church. A Parenting Course, a group for those with pre-school children and a special groups for Dads n Little Uns all proved very successful. We have a Retail Chaplaincy team who have continued to visit local businesses on a monthly basis to support staff. Monthly Welcome Lunches have also taken place in The Vicarage Jubilee Terrace, to welcome newcomers to The Belfrey. The Senior Staff are able to give up to 10% of their time to support other churches. Many of our staff team were heavily involved in running the New Wine Inspire conference near Thirsk in the summer. In 2016 we provided an office base for Fusion (working with university students) and Alpha (promoting the Alpha course in the North of England). We continued to invest considerable time and energy into the Alpha course. Many find faith in Jesus Christ through Alpha and subsequently join the church, or other Christian communities. Alpha is a core activity of the church. We believe that helping people find faith in Jesus Christ through an activity such as Alpha is the greatest public benefit that we can provide as a church. 2

5 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL Review of the year - continued FOR THE YEAR ENDED 31 DECEMBER 2016 Buildings The Storehouse on Mansfield Street was severely damaged by the Boxing Day floods at the end of 2015 but thanks to much hard work the centre was up and running again by Easter 2016, providing an even better space than before for the families, young people and children who use it each week. St Michael le Belfrey and St Cuthbert s Churches are significant buildings which we value and have continued to maintain and upgrade under the guidance of our Facilities Manager Rob Hill, for the mission and ministry and as part of our built heritage. The church also owns The Belfrey Hall, 13 Hempland Drive and 28 Langdale Avenue and rents various buildings to house Forgees, as well as renting from York Minster the Parish Centre (11/12 Minster Yard) as a church centre. St Michael le Belfrey Church, St Cuthbert s Church and the Belfrey Hall are used most days, not just for worship and prayer, but also for meetings, concerts, theatre productions and as a home to the Yorkshire Bach Choir. For a number of weeks in the summer St Michael le Belfrey Church provided the home for York Minster s daily Evensong, to enable the Minster to accommodate the 2016 Mystery Plays. Money St Michael le Belfrey is a non-profitable, charitable organisation, receiving an income in 2016 of 740,649. We see all financial provision as money for mission. Not only was this money used to pay staff (responsible for various areas of church life) and fund various aspects of church life, but much was given away, especially to various long-term Mission Partners in York, the North, UK and abroad. We also support the local Diocese, contributing 160,622 in 2016 which, after supporting our two full-time stipendiary clergy posts supports the Diocese in its wider mission in schools, and a breadth of communities, rural and urban. Partnerships We continue to be part of The One Voice network of churches in York, to partner with Riding Lights Theatre Company, The Spurriergate Centre, YoYo and Restore in York, and with New Wine, Alpha and St Barnabas Theological Centre (now St Hild College) in the North. People People are the key resource of the church, because church is first and foremost people. The PCC would like to thank all the paid and voluntary staff who have contributed so much over the year. We welcomed two new paid members of staff in 2016: James Fletcher as our Head of Prayer and Kerstin Wandel as Greg Downes PA. PLANS FOR THE FUTURE In order to further the vision of serving God s transformation of the North in the coming year, we believe God is calling us to pray and expect many men and women to encounter him in This has been communicated to the church through preaching, film, and an Encounter Vision booklet. A period of 21 Days of Prayer and Fasting in January 2017, with three special mid-week meetings has helped solidify this vision for the year and we are expectant of an exciting year ahead. We believe this emphasis on encounter is important - not just for the future growth and development of our church, but for the flourishing of individuals, families and communities in our city and region. As we encounter God so he changes our lives, empowering us to be agents of transformation in the world. 3

6 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL PLANS FOR THE FUTURE - continued FOR THE YEAR ENDED 31 DECEMBER 2016 St Michael le Belfrey Church continues to plan for growth, not for decline. We believe we have a strategic and God-given vision and humbly, prayerfully and confidently seek for it to be furthered in 2017 and beyond. FINANCIAL REVIEW The activities of the PCC are funded almost entirely through the generosity of church members. In 2016 there was a significant increase in regular giving, reversing a decline in the preceding year. The table below shows giving by standing order. Main figures for 2013, 2014, 2015 and 2016 refer to the Belfrey only, without G2 congregation standing orders. Figures in brackets show the total of all standing orders, which is a more accurate comparison over the full 5 years, as G2 numbers were not shown separately for Year Donors Total Average per annum Average per month ,742 1, (253) 363,358 ( 389,468) 1,601 ( 1,539) 133 ( 128) (255) 355,448 ( 392,965) 1,566 ( 1,541) 130 ( 128) (246) 322,411 ( 364,394) 1,620 ( 1,481) 135 ( 124) (247) 348,410 ( 394,753) 1,725 ( 1,598) 144 ( 133) Expenditure was controlled broadly within budget, in spite of the need to purchase new boilers for two of our buildings. The cost of repair and reinstatement of the Storehouse after the severe flooding on Boxing Day 2015 was fully recovered from insurance and grants. We continued to benefit from the very generous gift received in 2015, utilising 36,074 from this gift during 2016 towards the operation of the Storehouse and two new salaried posts covering prayer leadership and support for Greg Downes ministry. Expenditure from the major gift will result in our Accounts showing losses in 2016 and a number of subsequent years until the gift has been fully spent. However, the PCC has continued to seek to operate within a break-even budget excluding the major gift expenditure, and a deficit of 9,531 on this measure came reasonably close to this aim, taking account of the need for unforeseen property-related expenditure exceeding this amount. Unrestricted cash reserves have also fallen as expected, due mainly to expenditure from the major gift. Total unrestricted reserves have benefited to the extent of 125,000 from the revaluation in 2016 of the 3 non-ecclesiastical properties owned by the PCC. 4

7 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FINANCIAL REVIEW - continued FOR THE YEAR ENDED 31 DECEMBER 2016 We had a successful Gift Day in September 2016, raising nearly 34,000 for local mission organisations, extra support for the Diocese of York and key improvements within the church. Restricted funds have fallen during the year reflecting (as with Gift Day) their use on the projects for which they were donated and G2 using their ample reserves to support initiatives such as G2 Central. We are very thankful for the continued support of our finance volunteers Gill McIntosh, Val Patrick and Ian Fergie and for the work of HPH, Chartered Accountants, to whom we outsource some of our accounting services and our payroll processing. INVESTMENT POLICY With a total of 267,726 still remaining from the major gift at the year-end in addition to our normal cash balances, the PCC has maintained its policy of spreading a total of 265,000 between deposit accounts with 4 reputable UK financial institutions, maximising the rates of interest consistent with tying up funds for no longer than one year and having funds available to spend in line with the designated usage of the major gift This will be kept under review, but the risk-averse approach to these investments will continue. RISK MANAGEMENT The PCC has assessed the major risks to which it is exposed, in particular those related to the operations and finances of the PCC, and is satisfied that systems and actions are in place to mitigate exposure to these risks. The biggest risks identified by the PCC relate to a loss of donors and to property-related events, whether an accident or major unforeseen remedial work. As regards donors, promotion of regular giving was successful in generating a substantial increase during As regards property, the church has a regular maintenance programme for its properties, adequate reserves to meet unexpected short-term costs, and a longer-term project to renew and re-order its Grade 1 listed church building. RESERVES POLICY The major part of the unrestricted general fund reflects the value of property held on behalf of the PCC ( 796,860). The balance of unrestricted funds held in cash enables the PCC: to cover normal monthly variations in income and expenditure; to provide for unforeseen shortterm expenditure (on such items as building repairs) or shortfalls in income; and to respond promptly to future opportunities in support of the church s mission. Although reserves sharply increased in 2015 thanks to the major gift, these funds are expected to be spent over a 4-5 year period, and this process began in It remains the medium-term aim of the PCC to retain when feasible unrestricted cash reserves equating to 3 months essential running costs. Total reserves at 31 December 2016 amounted to 1,164,306 of which 1,103,507 related to unrestricted funds ( 305,795 being unrestricted free reserves) and 60,799 related to restricted funds. 5

8 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2016 STRUCTURE, GOVERNANCE AND MANAGEMENT The Parish of St Michael le Belfrey, York is a parish within the Church of England as defined by canon law. Individual parishes within the Church of England do not have a separate constitution. They work within the framework of Church of England ecclesiastical law, consisting of the Parochial Church Council Powers Measure (1956) and the Church Representation Rules. Charitable status was received on 30 July Parish Name: Church Address: Office Address: St Michael le Belfrey St Michael le Belfrey, Low Petergate, York The Parish Centre, 11/12 Minster Yard, York, YO1 7HH Members of the PCC are either ex officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. New members receive initial training into the workings of the PCC and are encouraged to attend training courses arranged by the diocese or deanery. The Church is led by the Vicar with the assistance of a Leadership Team and is governed by the PCC, which meets monthly. It is managed by a team of staff and volunteers. Standing and Finance Committee This is the only committee required by law and is made up of the Vicar, Associate Minister, Church Wardens and Treasurer. It has power to transact the business of the PCC between its meetings, subject to any directions given by the Council. Given that the PCC meets monthly, there has been no need for this committee to meet during the year. ADMINISTRATIVE INFORMATION Charity Name (working name) St. Michael Le Belfrey PCC Registered Number Principal Address The Parish Centre, 11/12 Minster Yard, York, YO1 7HH PCC Members (*Charity Trustees) The members of the PCC who served during the year were as follows: Clergy Matthew Porter* Greg Downes* Jim Roberts* Ben Doolan* Christian Selvaratnam* Liz Ransford 6

9 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2016 ADMINISTRATIVE INFORMATION - continued Churchwardens Peter Gibson (Warden Emeritus) (died November 2016) Julie Caddell (Lay Chair of PCC)* Daniel Brookes (resigned April 2016) Natasha Fletcher* Barrie Stephenson* Christopher Dobson (joined April 2016) Deanery Synod Elected representatives Officers Auditors Accountants & Payroll Agents Bankers Daniel Brookes* Richard Lawrence* Tony Scott Dudley Clark* Martine Somerville (joined April 2016)* Samuel Hutchinson (joined April 2016)* Beth Goodwin* Katrina Bakker (resigned April 2016) Helen Lawrence (resigned April 2016) Geoff Pickles (resigned April 2016) Pete Simpson (resigned April 2016) Douglas Greenfield (joined April 2016)* Elizabeth Richardson (joined 2016)* Roger Holmes (Treasurer)* James Webster (joined April 2016)* Brogan Hume* Secretary: Daniel Brookes Treasurer: Roger Holmes Electoral Roll Officer: Jo Briggs Waltons Clark Whitehill Limited Maritime House Harbour Walk, The Marina Hartlepool TS24 0UX HPH Chartered Accountants 54 Bootham York YO30 7XZ Royal Bank of Scotland 6 Nessgate York YO1 1FY 7

10 ANNUAL REPORT OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2016 STATEMENT OF RESPONSIBILITIES OF THE PAROCHIAL CHURCH COUNCIL Law applicable to charities in England and Wales and guidance issued by the Central Board of Finance of the Church of England require the members of the Parochial Church Council to prepare financial statements which give a true and fair view of the Parochial Church Council s financial activities during the year. In preparing financial statements giving a true and fair view, the members of the Parochial Church Council should follow best practice and: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether the Church guidance, applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Parochial Church Council will continue in operation. The members of the Parochial Church Council are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Parochial Church Council and enable them to ensure that the financial statements comply with the Church Accounting Regulations 2006 and the Charities Act They are also responsible for safeguarding the assets of the Parochial Church Council and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. PROVISION OF INFORMATION TO AUDITOR In so far as the PCC members are aware: There is no relevant information of which the PCC s auditor is unaware; and The PCC members have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Signed on behalf of the Parochial Church Council Revd. Matthew Porter Chair 5 April

11 INDEPENDENT AUDITORS REPORT TO We have audited the financial statements of The Parochial Church Council of the Ecclesiastical Parish of St Michael Le Belfrey with St Cuthbert, York (the PCC) for the year ended 31 December 2016 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the PCC as the charity s trustees, and as a body, in accordance with section 154 of the Charities Act Our audit work has been undertaken so that we might state to the PCC those matters we are required to state to them in an auditors 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 PCC as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the PCC and auditors As explained more fully in the Statement of Responsibilities of the Parochial Church Council, the PCC is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the PCC's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the PCC; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report of the Parochial Church Council to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. 9

12 INDEPENDENT AUDITORS REPORT TO Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the PCC's affairs as at 31 December 2016 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 requirements of the Charities Act 2011 and the Church Accounting Regulations Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: the information given in the Annual Report of the Parochial Church Council is inconsistent in any material respect with the financial statements; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Waltons Clark Whitehill Limited Chartered Accountants Statutory Auditors Maritime House Harbour Walk The Marina Hartlepool TS24 0UX Waltons Clark Whitehill Limited is eligible to act as auditors in terms of section 1212 of the Companies Act

13 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2016 Unrestricted Restricted Total Funds Note Funds Funds Income and endowments from: Donations and legacies 2 553, , , ,020 Charitable activities 3 44,946 1,430 46,376 31,617 Other trading activities 4 10,715-10,715 12,576 Investments 5 3,058 1,035 4, Other incoming resources 6 8, ,218 14,294 Total income 620, , ,648 1,045,434 Expenditure on: 7 Raising funds Charitable activities 665, , , ,479 Total expenditure 665, , , ,509 Net income/(expenditure) before gains and losses Net gains/(losses) on revaluation of fixed assets and investments (45,606) (22,079) (67,685) 294,925 11/12 124, , Net income/(expenditure) 79,208 (22,079) 57, ,156 Transfers between funds (930) Net movement in Funds 78,278 (21,149) 57, ,156 Total funds brought forward at 1 January ,025,228 81,948 1,107, ,020 Total funds carried forward at 31 December /20 1,103,507 60,799 1,164,306 1,107,176 The notes on pages 14 to 22 form part of these financial statements. The Statement of Financial Activities includes all gains and losses in the year and all of the above amounts relate to continuing activities. 11

14 Fixed Assets Current Assets Current Liabilities BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2016 Unrestricted Restricted Total Funds Note Funds Funds Tangible fixed assets , , ,790 Investments , , , ,829 Stock Debtors 14 10,388-10,388 14,465 Cash at bank and in hand ,840 61, , ,220 Total Current Assets 330,069 61, , ,994 Creditors: amounts falling due within one year 16 24, ,767 25,647 Total current liabilities 24, ,767 25,647 Net Current Assets 305,793 60, , ,347 Total assets less current liabilities 1,103,507 60,799 1,164,306 1,107,176 Net Assets 1,103,507 60,799 1,164,306 1,107,176 The funds of the charity Unrestricted general funds , , ,228 Unrestricted designated funds , , ,000 Restricted Funds 19-60,799 60,799 81,948 Total Charity Funds 1,103,507 60,799 1,164,306 1,107,176 Approved by the Parochial Church Council on 5 April 2017 and signed on its behalf by: Revd Matthew Porter (Chair) The notes on pages 14 to 22 form part of these financial statements. 12

15 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2016 Cash flows from operating activities: Note Net income for the reporting period 57, ,156 Adjustment for: Depreciation (Gains) on investments (124,814) (231) (Increase) in stock (533) (309) Decrease/(increase) in debtors 4,077 (1,194) (Decrease) in creditors (880) (118) Profit on disposal of fixed assets (180) - Net cash used in operating activities (64,270) 294,234 Cash flows from investing activities: Sale proceeds from disposal of fixed assets Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period (64,090) 294, , , , ,220 Charity law requires separate administration of the cash flows of endowed and other restricted funds of the Charity. This constraint has not adversely affected cash flows as stated above. The notes on pages 14 to 22 form part of these financial statements 13

16 1. ACCOUNTING POLICIES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2016 The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Church Accounting Regulations 2006 and UK Generally Accepted Practice as it applies from 1 January The financial statements have been prepared to give a true and fair view and 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements include all transactions, assets and liabilities for which the Parochial Church Council ( the PCC ) is responsible in law. They do not include the accounts of church groups that owe their main affiliation to another body, nor those that are informal gatherings of church members. The PCC is a public benefit entity. Funds Unrestricted funds represent the general funds of the PCC that are not subject to any restrictions regarding their use and are available for application for the ordinary purposes of the PCC. These include funds designated for a particular purpose by the PCC. Restricted funds represent (a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest, and (b) donations or grants received for a specific object or invited by the PCC for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. The PCC does not usually invest separately for each fund. Where there is no separate investment, interest is apportioned to individual funds on an average balance basis. Income recognition All income is recognised once the PCC has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably. Planned giving, collections and donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is received. Grants and legacies are accounted for when the PCC is entitled to the use of the resources, their ultimate receipt is considered reasonably certain and the amounts due are readily quantifiable. Dividends are accounted for when declared receivable, interest as and when accrued by the payer. All other income is recognised when it is receivable. Amounts received specifically for mission are dealt with as restricted funds. All incoming resources are accounted for gross. 14

17 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 (CONTINUED) 1. ACCOUNTING POLICIES (continued) Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the PCC to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably. Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the PCC. The diocesan parish share is accounted for when due. All other expenditure is generally recognised when it is incurred and is accounted for gross. Fixed assets Consecrated and benefice property is not included in the financial statements in accordance with section 10 (2) (a) and (c) of the Charities Act Movable church furnishings held by the vicar and churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the church s inventory, which can be inspected at any reasonable time. All expenditure incurred during the year on consecrated or benefice buildings and movable church furnishings, whether maintenance or improvement, is written off. Other land and buildings held on behalf of the PCC for its own purposes are valued at market value. No depreciation is charged against such properties as they are regularly maintained to such an extent that their estimated economic lives and residual values are such that their depreciation is insignificant. At each year end an assessment is carried out to ascertain whether there is any indication that the properties should be written down (i.e. whether its carrying amount is more than its recoverable amount). If there is no indication that a property should be written down, it is not necessary to estimate the recoverable amount. Equipment used within the church premises, The Parish Centre and Church Hall is depreciated on a straight line basis over its estimated useful life of 4 to 10 years. Individual items of equipment with a purchase price of 3,000 or less are written off in the period in which the asset is acquired. Investments Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation at the year end and disposals throughout the year. 15

18 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 (CONTINUED) 1. ACCOUNTING POLICIES (continued) Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Current assets Amounts owing to the PCC at 31 December in respect of fees, rents or other income are shown as debtors less any provision for amounts that may prove uncollectable. Operating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against income on a straight line basis over the period of the lease. Pensions Employees of the PCC are entitled to join a nominated defined contribution money purchase scheme with Aviva or to join another similar scheme of the individual employee s choice. The PCC s contribution is restricted to the contributions disclosed in note 9. Irrecoverable Value Added Tax The PCC is not registered for Value Added Tax (VAT) and accordingly expenditure is shown gross of irrecoverable VAT. The VAT incurred from time to time on certain fabric repair and maintenance expenditure can, however, be recovered under the Listed Places of Worship Grant Scheme. Going Concern The church has cash resources and has no requirement for external funding. The PCC have a reasonable expectation that the church has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting is appropriate in preparing the financial statements. Heritage Assets The Vicar and Church Wardens hold on special trust for the PCC silver and plate gifted to the church for ecclesiastical purposes. They date from the 17 th century and therefore, there is insufficient cost information available. Due to the unique nature of these assets and their historic association with worship at the church over hundreds of years, conventional valuation techniques are not applicable and therefore have not been valued in the financial statements. The silver and plate, 22 items in total are listed in the church s inventory and are regarded by law as inalienable assets which the PCC would require a faculty for disposal. Inspection can be arranged at reasonable times where they are located. 16

19 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 (CONTINUED) Unrestricted Restricted Total Funds Funds Funds Donations and legacies Planned giving: Standing Orders 348,410 46, , ,394 Tax recoverable 90,308-90, ,251 CAF 47,545-47,545 45,383 Collections (open plate) 50,509-50,509 51,236 Gift days and tax recoverable - 33,612 33,612 34,274 Donations 16,792 37,728 54, , , , , , Income from charitable activities Events 15,917 1,430 17,347 14,018 Other income from church activities 29,029 29,029 17,599 44,946 1,430 46,376 31, Other trading activities Sales 1,007-1, Hire of facilities 9,646-9,646 10,664 Music ,715-10,715 12, Investment income Dividends received - 1,035 1, Deposit interest 3,058-3, ,058 1,035 4, Other income Other income 8,038-8,038 14,294 Profit on disposal of fixed assets , ,218 14,294 17

20 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 (CONTINUED) 7. Analysis of expenditure Unrestricted Restricted Total Funds Funds Funds Total Funds 2015 Raising funds Charitable Activities - Support Costs Missionary and charitable giving Overseas: Overseas mission 22,058 4,674 26,732 22,915 Home: Home mission and grants 14,680 54,172 68,851 79,725 Direct Costs 36,738 58,846 95, ,640 Ministry: Diocesan free will offering 150,000 10, , ,200 Church - general upkeep and services 53,528 25,639 79,167 57,723 Church - premises 100, ,867 75,189 Church - fabric maintenance and repairs ,442 Music 4,047-4,047 3,139 Events 13,327 1,867 15,194 11,633 Staff costs 213,507 40, , ,479 Minster Yard rent 25,440-25,440 25,440 Office and administration costs 17,412-17,412 28,805 Finance costs 5,947 5,947 4,332 Parish assistants' costs 17,598-17,598 11,806 Other staffing costs 11,905 4,690 16,595 17,294 Audit fee 2,220-2,220 2,220 Other fees paid to auditor Outsourced accountancy and payroll 13,100-13,100 9, , , , ,479 Total 665, , , ,509 18

21 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 (CONTINUED) 8. Mission and charitable grants Unrestricted Restricted Total Funds Funds Overseas mission FHI (Marsden) 4,700-4,700 7,134 Interserve (Manley) ,000 International café Brazil (Roberts) 7,500 2,396 9,896 6,790 Wycliffe (Eves) 6,676 2,000 8,676 6,642 Mission Trips (Cambodia/Burundi/GAT India/GAT) 1,000-1,000 - Other (less than 1,000) Wilson 2,000 2,000-22,058 4,674 26,732 22,915 Home mission and grants YOYO - 4,000 4,000 4,680 Homer 5,917-5,917 5,437 Friends International 100 2,000 2,100 2,000 Global Connections Short Term/Church Mission 1,347-1,347 - Special & Funeral Collections 2,526 11,824 14,350 4,804 Acts 435-2,215 2,215 1,640 Kidz Klub ,000 Never Give Up Group 1,744 1,744 2,389 RLTC - 3,000 3,000 3,000 House of Prayer 2,159 1,167 3,326 2,255 Basement/Storehouse - 3,892 3,892 30,570 Belfrey Neighbours ,511 St Cuthbert's Garden Alpha 2,278-2, New Wine Roger Simpson - 2,000 2,000 2,500 Restore - - West End fund Giving Away Day Other Gift Day Gifts - 21,887 21,887 16,096 14,680 54,172 68,851 79,725 36,738 58,846 95, , Net income for the year This is stated after charging: Staff pension contribution 3,823 2,400 Depreciation Auditors' remuneration - audit of financial statements 2,220 2, Staff costs and emoluments Total staff costs were as follows: Wages and salaries 236, ,853 Social security costs 13,651 12,226 Other pension costs 3,823 2, , ,479 During the year the PCC employed no one who earned more than 60,000. The total number of employees during the year was 16 ( ). The average number of employees (all administrative staff) during the year, calculated on the basis of full-time equivalents, was 10 (2015-8). The PCC considers its key management personnel to comprise only of the Trustees, who receive no remuneration in their capacity as trustees. 19

22 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 (CONTINUED) 11. Tangible fixed assets Freehold Land & Motor Church Buildings Vehicles Equipment Total Cost or valuation At 1 January ,000-68, ,817 Addition in year Disposal in year Revaluation 125, ,000 At 31 December ,000-68, ,817 Depreciation At 1 January ,027 66,027 Charge for year Disposal in year At 31 December ,957 66,957 At 31 December ,000-1, ,860 At 31 December ,000-2, ,790 The freehold land and buildings, comprising 13 Hempland Drive, 28 Langdale Avenue and the Church Hall were revalued at 1 December 2016 by Stephensons Estate Agents, and are included at their revised market values of 375,000, 155,000 and 265,000 respectively. This has therefore increased the market value of the properties by 125,000 in total. If the freehold property had not been included at valuation, they would have been included under the historical cost convention as follows; Historical cost at 31 December , , Investments Market value at 1 January , Net (loss)/gain on revaluation for the year (186) 231 Market value at 31 December ,039 Historical cost at 31 December ,053 1,053 The investments are UK listed quoted shares. The PCC also receives income from 2,212 Charities Official Investment Fund shares. However, the value of the shares has not been included within the balance sheet because, although the PCC receives the income, the legal title belongs to two charities associated to the PCC. 13. Stock Bookstall stock and other Debtors Income tax recoverable 7,068 7,145 Prepayments and accrued income 3,319 7, ,388 14,465

23 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 (CONTINUED) Cash at bank and in hand Bank balances 379, ,191 Cash balances , , Creditors: amounts falling due within one year Mortgage - 1,410 Accruals 16,345 15,018 Other creditors 2,509 2,600 Tax and social security creditor 4,493 5,199 Pension creditor 1,420 1,420 24,767 25,647 The mortgage was paid off in full in June Commitments under operating leases At 31 December 2016 the PCC had total commitments under non-cancellable operating leases as set out below: Land and Other Land and Other buildings items buildings items Operating leases which expire Under 1 year Within 2 to 5 years - 11,052-13,999 After more than 5 years 306, , ,200 11, ,640 13, Unrestricted Funds Other Brought Transfers recognised Carried forward Incoming Outgoing Between gains and forward 01/01/2016 Resources Resources Funds (losses) 31/12/2016 Unrestricted fund - General 745, ,321 (665,926) 27,270 (186) 726,707 Unrestricted fund - Revaluation Reserve 31, , ,000 Designated fund - Church Planting 50, ,000 Designated fund - Pastoral Development 100, ,000 Designated fund - Prayer Leadership 33, (9,200) - 23,800 Designated fund - Student Mission 33, ,000 Designated fund - Youth Mission 33, (19,000) - 14,000 1,025, ,321 (665,926) (930) 124,814 1,103,507 21

24 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 (CONTINUED) 19. Restricted Funds Brought Carried forward Incoming Outgoing forward 01/01/2016 Resources Resources Transfers 31/12/2016 Legacy (silver) St Wilfred Ecclesiastical Charity 2,344 1,035 - (53) 3,326 Music (royalties) West End Fund 2, (42) - 2,350 Kidz Club (400) - 2 Special Collections 462 3,516 (3,314) (184) 480 Unspecified but Restricted (206) G2 40,355 59,532 (78,724) - 21,162 Evangelism of the North Acts ,075 (2,215) Never Give Up 2, (1,744) 2,184 2,937 Basement/Storehouse (32) 2,808 (3,893) 1, Belfrey Neighbours House Of Prayer 1, (1,167) Revive (Roberts) 50 1,397 (1,397) 50 Shoeboxes (278) - 1 Funeral Collections (29) 9,139 (8,512) (1,201) (603) Restore Individual training fund 8,791 - (4,686) 4,105 Giving Away Day 20,843 28,637 (32,828) (1,936) 14,716 Bible Fund IT Fund St Cuthbert's Garden Women of Worth Boiler - 3,000 (3,000) - - Production Manager Fund - 8, ,000 81, ,328 (142,407) , Analysis of net assets by fund Unrestricted Restricted Total Tangible fixed assets 796, , ,790 Investment fixed assets ,039 Current assets 330,070 61, , ,994 Creditors Amounts falling due within one year (24,276) (491) (24,767) (25,647) 1,103,507 60,799 1,164,306 1,107, Related party transactions No member of the PCC received any remuneration or expenses for their services to the PCC. Christian Selvaratnam (clergy) is employed under a contract of employment to carry out his role within the church but is not paid for his services as a PCC member. During the year a total of 78,331 was donated to the PCC by PCC Members (trustees), including close family members. 22