ST. MICHAEL THE ARCHANGEL, SMARDEN ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2014

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1 ST. MICHAEL THE ARCHANGEL, SMARDEN ANNUAL REPORT AND FINANCIAL STATEMENTS OF THE PAROCHIAL CHURCH COUNCIL FOR THE YEAR ENDED 31 DECEMBER 2014 Incumbent: Rev'd Alex Bienfait The Rectory Biddenden Kent Bank: Lloyds TSB Bank plc High Street Ashford Kent Independent Examiner: H J E Summerfield FCA Wilkins Kennedy FKC Stourside Place Ashford Kent

2 PAROCHIAL CHURCH COUNCIL OF ST MICHAEL THE ARCHANGEL, SMARDEN ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2014 ADMINISTRATIVE INFORMATION The Church of St Michael the Archangel is situated in Cage Lane, Smarden. It is a Joint Benefice with All Saints, Biddenden, and part of a Group Ministry with the parishes of Bethersden, High Halden and Woodchurch within the Diocese of Canterbury, Church of England. The Parochial Church Council (PCC) is a charity excepted from registration with the Charity Commission. PCC members who have served from 1 January 2014 until the date when this report was approved are: Incumbent: The Rev. Alex Bienfait The Rev. Catherine Wilson Assistant Curate from June 2014 Churchwardens: Mr Edward Demery From 29 April 2014 Mr Thomas Hay From 29 April 2014 Representatives on the Deanery Synod: Mr Marcus Palmer Mr Michael Barkway Elected members: Mrs Viviene Rose From April 2007; re-elected 2010, 2013 (2nd year, 3rd term) Mr John Lowings From 18 May 2010; re-elected 2013 (2nd year, 3rd term) Mrs Annette Haynes From 24 April 2012 to 29 April 2014 Mr Ray Sherman From 24 April 2012 (3rd year, 1st term) Mr Thoomas Hay From 30 April 2013 to 29 April 2014 Mrs Iris Spence From 30 April 2013 (2nd year, 1st term) Mrs Alex Demery Co-opted 22 May 2013 to 29 April 2014 Mr Anthony Lush From 29 April 2014 (1st year, 1st term) Miss Fran Lester Treasurer - Co-opted 9 September 2014 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. OBJECTIVES AND ACTIVITIES When planning our activities for the year, the incumbent and the PCC have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The PCC objectives and activities are guided by our Church Plan A major revision of this Plan took place during Our Church first and foremost seeks to be a community of Christian Action. Page 1

3 PAROCHIAL CHURCH COUNCIL OF ST MICHAEL THE ARCHANGEL, SMARDEN ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2014 OBJECTIVES AND ACTIVITIES - CONTINUED Our Vision: We will grow a Church that is open to all We will develop and display confidence as Christians We will seek to serve the community Our Mission: To provide a warm welcome To support each other in our spiritual growth To be visible, capable and available as Christian helpers in our community To encourage the spiritual development of young people ACHIEVEMENTS AND PERFORMANCE Church attendance There were 67 parishioners on the Church Electoral Roll for 2014 (2013: 68). The average weekly attendance was 37 but this number increased at festivals. During 2014 there were 10 baptisms, 3 weddings and 8 funerals. Review of the year: Demonstration of Public Benefit The Ministry Team Our Ministry team expanded significantly with the appointment of Rev. Catherine Wilson as part time stipendiary Assistant Curate in June Catherine continues to live with her family in Great Chart, Ashford, and commutes to the parish. Peter Newell, ordinand, has started the third and final year of his ordination course. Peter lives in Ashford and commutes to our Church. We continue to have the valued support and help of the Rev. Pearl Anderson, retired priest living in Headcorn, as well as Zena Grant, who is a Reader Emeritus. Our Church Plan (Mission Plan) Work to review and update our old Mission Plan took place throughout This follows a Mission Action Planning Day in October The new Church Plan is to be launched at the APCM in The service and rota planning team, formed of licensed ministers, representatives of the PCC and choir and organist, meets about 6 times a year. The main task of the team is to plan and review the worship rota. We aim to offer a range of styles of worship to suit different ages and preferences for worship. The scope of worship at our Church includes BCP Mattins on the first Sunday of the month, Parish Eucharist using Common Worship (CW) on the second and fourth Sundays (with a Nave altar on the fourth Sunday), BCP Communion on the third Sunday and BCP Evensong on the second Sunday. Active Church, our "Messy Church" style of service continues to develop. Sessions start with activities, all of which are designed to link in with the theme of the day. There is a coming together at the end which provides a summary telling of the main theme/story. There are an average of 20 adults and 20 children who attend. Learning Team An afternoon Lent group was run during Lent 2014 on the theme of money, using material from the Church of Scotland. Page 2

4 PAROCHIAL CHURCH COUNCIL OF ST MICHAEL THE ARCHANGEL, SMARDEN ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2014 Review of the year: Demonstration of Public Benefit (Continued) Children and Young People Beyond the ministry of Active church described above, we maintain a close relationship with Smarden Primary School. Zion Chapel and our Church share the responsibility in taking a weekly assembly in the School. Pupils of Smarden Primary School also come into our Church for special festivals which take place about once a term. Collaboration with other churches There are warm links with Zion Baptist Chapen, Smarden. Zion Chapel joined in with Active Church in April 2014 and the Annual Remembrance Service. The Churches of Smarden and Biddenden are a joint benefice but are also part of a Group ministry which encompasses the parishes of High Halden, Bethersden and Woodchurch. In principle we join in Group wide services on the 5th Sunday of the month, except when the 5th Sunday co-incides with feast days. We came together for the welcome of Catherine Wilson in Smarden Parish Church in June 2014 and when Damian Green MP was guest at All Saints, Biddenden in November Joint marriage preparation, in the form of an annual Marriage Preparation Conference, is offered to couples being married in the Group Ministry. Fund Raising and Events In 2014 the PCC organised various social and fundraising events. These included: the Easter Day Egg Hunt; 'Friends, Food, Fun and Funds'; 'Ride and Stride' a sponsored church cycle event; a Safari Supper and a Harvest Lunch. In addition, the Church Tower was open for the Summer Spectacular/Garden Event organised by Friends of Smarden Church (FOSC) and other local charities. One further significant event in which the Church took a lead in organising was the annual Smarden Spectacular Bonfire Celebration. This was made possible with support from several other village organisations and individuals but the PCC undertook management of the event. Fabric The main outstanding item from the last quinquennial report is electrical work. The Church requires complete rewiring and the replacement of lighting. In 2014 the PCC appointed a lighting designer with strong experience of lighting design in churches. The initial estimate puts the cost at 65,000. The PCC receives generous support from Friends of Smarden church (FOSC). FOSC have already committed 40,000 to the cost of the electrical work, the balance will be raised by the PCC. It is hoped that the physical installation work will take place in the late Summer/Autumn of There was no major work carried out in 2014 but regular maintenance and repairs were made to the boiler; the fire extinguishers were checked and replaced and plumbing repairs were carried out to the lavatory. Page 3

5 PAROCHIAL CHURCH COUNCIL OF ST MICHAEL THE ARCHANGEL, SMARDEN ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2014 Review of the year: Demonstration of Public Benefit (Continued) Parish Magazine The PCC publishes a monthly Parish Magazine which is circulated to over 500 homes in the parish. includes community news and Parish Council business. The cost is 50 pence per issue. The magazine Church Opening Times The PCC continues to maintain a policy of keeping the church open during daylight hours for private prayer. FINANCIAL REVIEW Our financial aim is to maintain an annual surplus of income over expenditure so that we can build up funds designed to meet the requirements of the quinquennial surveys on the fabric of the church. We use the COIF Charities Deposit Fund to hold most of our unrestricted funds that may be required at relatively short notice. This deposit fund offers immediate access and pays interest at rates marginally higher than those generally available from commercial banks. Also, we continue to hold a National Savings Income Bond which provides a risk free steady income. Funds that are unlikely to be needed in the short term are invested in the CBF Church of England Investment Fund; this fund is invested predominantly in equities and aims at achieving income and capital growth over a long term. The value of our CBF investment increased by 9.53% during was a year where we faced some challenges and expenses exceeded income. This was particularly noticeable when comparing with the previous year. The reasons for this were significantly reduced revenue from events after a very successful previous year, and higher expenditure due largely to one off expenses such as the new cabin in the grounds of the vicarage. In addition donations were down by in excess of 5,000 largely due to significant donations having been received in the previous year. During the year it had become apparent that general running expenses borne by the joint account had increased and the monthly contribution from Biddenden and Smarden into this account was increased but only in October. A detailed budget prepared for 2015 indicates a further deficit but plans are in hand to reduce this deficit although the year generally will be challenging as it also involves fund raising for the lighting project. In the longer term it is envisaged that expenditure will stabilise. RESERVES POLICY It is PCC policy to maintain a balance on unrestricted funds (if possible), which equates to approximately twelve months unrestricted payments, to cover emergency situations that may arise from time to time. Approved by the Parochial Church Council on 10 March 2015 and signed on their behalf by The Revd. Alex Bienfait Page 4

6 INDEPENDENT EXAMINER S REPORT TO THE PAROCHIAL CHUCH COUNCIL OF ST MICHAEL THE ARCHANGEL, SMARDEN FOR THE YEAR ENDED 31 DECEMBER 2014 This report on the accounts of the PCC for the year ended 31 December 2014, which are set out on pages 6 to 11, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 ( the Regulations ) and s.145 of the Charities Act 2011 ( the Act ). Respective responsibilities of the PCC and the Examiner As members of the PCC you are responsible for the preparation of the accounts; you consider that the audit requirement of the Regulations and section 145(1) of the Act do not apply. It is my responsibility to issue this report on those accounts in accordance with the terms of the Regulations. Basis of this report My examination was carried out in accordance with General Directions given by the Charity Commission under section 145(5)(b) of the Act and to be found in the Church guidance, 2006 edition. An examination includes a review of the accounting records kept by the PCC and a comparison of the accounts presented with those records. It also includes considering any unusual items or disclosures in the financial statements 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. Independent Examiner s 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 130 of the Act; and to prepare accounts which accord with the accounting records and comply with the 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 the accounts to be reached. Date:. H J E Summerfield FCA Wilkins Kennedy FKC Chartered Accountants Page 5

7 The Parochial Church Council of St Michael the Archangel, Smarden STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 December 2014 Unrestricted Restricted TOTAL FUNDS Funds Funds 31-Dec Dec-13 Note INCOMING RESOURCES Incoming resources from donors 2a 30,527 5,703 36,230 41,907 Income from activities to further PCC's objectives 2b 7,353-7,353 7,607 Income from activities to generate funds 2c 3,594-3,594 8,974 Income from Investments 2d TOTAL INCOMING RESOURCES 42,271 5,723 47,994 59,262 EXPENDITURE Grants to charities 3a 1, ,703 2,710 Activities directly relating to the work of the Church 3b 44,030 5,000 49,030 47,545 Church administration 3c 3,283-3,283 1,087 Cost of generating funds 3d ,596 TOTAL RESOURCES EXPENDED 48,935 5,703 54,638 52,938 NET (OUTGOING)/INCOMING RESOURCES BEFORE OTHER RECOGNISED GAINS AND LOSSES (6,664) 20 (6,644) 6,324 Gains on investment assets: Unrealised ,763 NET MOVEMENT IN FUND (5,714) 20 (5,694) 8,087 BALANCES B/FWD 1st JANUARY ,147 4,762 49,909 41,822 BALANCES C/FWD 31st DECEMBER ,433 4,782 44,215 49,909 Page 6

8 The Parochial Church Council of St Michael the Archangel, Smarden BALANCE SHEET as at 31 December 2014 Unrestricted Restricted TOTAL FUNDS Funds Funds 31-Dec Dec-13 Note FIXED ASSETS Tangible fixed assets 4a 1,400-1,400 2,803 Investments 4b 24,012-24,012 22,359 25,412-25,412 25,162 CURRENT ASSETS Debtors 5 3,510-3,510 5,576 Short term deposits 6 12,181-12,181 6,880 Cash at bank 7 3,440 4,782 8,222 17,005 19,131 4,782 23,913 29,461 LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR Creditors 8 (5,110) - (5,110) (4,714) NET CURRENT ASSETS 14,021 4,782 18,803 24,747 TOTAL NET ASSETS 39,433 4,782 44,215 49,909 PARISH FUNDS Unrestricted 39,433-39,433 45,147 Restricted 9-4,782 4,782 4,762 39,433 4,782 44,215 49,909 The financial statements were approved and authorised for issue by the Parochial Church Council on 10 March 2015 and signed on its behalf by :- The Revd. Alex Bienfait The notes on pages 9 to 12 form part of these accounts Page 7

9 The Parochial Church Council of St Michael the Archangel, Smarden Notes to the Financial Statements for the year ended 31 December 2014 Note 1 Statement of Accounting Policies: The financial statements have been prepared under the historical cost convention and in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the SORP Funds 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, assets and liabilities for which the PCC is responsible by law. Incoming Resources Planned giving receivable under Gift Aid is recognised only when received. Income tax recoverable on Gift Aid donations is recognised when the income is recognised. Collections are recognised when received by or on behalf of the PCC. Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement and the amount due. Funds raised by social and other events are accounted for gross wherever practicable. Dividends and interest are accounted for when receivable. Resources used Grants to charities are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC. The diocesan quota or parish share is accounted for when payable. Fixed Assets Tangible fixed assets are depreciated at rates calculated to write down the cost to residual value over their useful lives: Furniture, fixtures and equipment Kitchen and toilet 20% straight line 10% Straight line Grants received as a contribution towards expenditure on specific assets are deducted from the purchase price of the related asset, with a consequent reduction in the annual charge for depreciation. Assets below 500 are not capitalised. Page 8

10 The Parochial Church Council of St Michael the Archangel, Smarden Notes to the Financial Activities Year ended 31 December 2014 Unrestricted Restricted TOTAL FUNDS Funds Funds 31-Dec Dec-13 2 INCOMING RESOURCES 2a Incoming resources from donors Gift Aid donations 21,304 4,045 25,349 30,298 Income tax recoverable 5,150 1,000 6,150 7,648 Other donations Collections at services 3, ,626 3,841 30,527 5,703 36,230 41,907 2b Income from activities to further PCC's objectives Parish magazine 5,261-5,261 5,698 Fees for weddings etc 2,092-2,092 1,909 7,353-7,353 7,607 2c Income from activities to generate funds Fundraising and social events 3,594-3,594 8,974 3,594-3,594 8,974 2d Income from Investments Dividends & Interest RESOURCES EXPENDED 3a 3b 3c 3d Grants to charities Home missions and other Church societies 1,000-1,000 2,225 Other Charities , ,703 2,710 Activities directly relating to the work of the Church Diocesan quota 25,677 3,000 28,677 28,721 Contribution to Benefice Joint Expenses Account 6,300-6,300 5,370 Church running expenses 5,190 1,200 6,390 6,929 Church maintenance ,481 1,075 Upkeep of services Expenditure of parish magazine 4,166-4,166 3,569 Upkeep of churchyard Canterbury DBF Fees Depreciation of furniture, fixtures and equipment 1,403-1,403 1,403 44,030 5,000 49,030 47,545 Church administration Printing and stationery Other ,009 Cabin 2,496-2,496-3,283-3,283 1,087 Cost of generating funds Fundraising and social events , ,596 Page 9

11 The Parochial Church Council of St Michael the Archangel, Smarden Notes to the Financial Activities Year Ended 31 December FIXED ASSETS Unrestricted Restricted a Tangible fixed assets Furniture, fixtures and equipment Cost B/Fwd 21,980-21,980 21,980 Additions Disposals Cost C/Fwd 21,980-21,980 21,980 Dep'n B/Fwd 19,177-19,177 17,774 Charge for Year 1,403-1,403 1,403 On Disposal Dep'n C/Fwd 20,580-20,580 19,177 NBV 1,400-1,400 2,803 4b Investments Market value at 1 January 22,359-22,359 19,932 Additions Revaluation gain ,763 Market value at 31 December 24,012-24,012 22,359 National Savings Income Bond 5,000-5,000 5,000 CBF Church of England Investment Fund Units 19,012-19,012 17,358 24,012-24,012 22,358 The cost of the CBF Church of England Investment Fund Units at 31 December 2014, including dividends of 703 which were re-invested during the year is 10,641 (2013: 9,938) 5 DEBTORS Income tax recoverable 2,183-2,183 5,250 Prepayments Other debtors 1,168-1, ,510-3,510 5,576 6 SHORT TERM DEPOSITS CCLA 12,181-12,181 6,880 12,181-12,181 6,880 7 CASH AT BANK AND IN HAND Lloyds TSB 3,440 4,782 8,222 17,005 3,440 4,782 8,222 17,005 8 CREDITORS - AMOUNTS FALLING DUE IN ONE YEAR Deferred income 2,877-2,877 2,290 Accruals Other creditors 1,333-1,333 2,288 5,110-5,110 4,714 Page 10

12 The Parochial Church Council of St Michael the Archangel, Smarden Notes to the Financial Activities Year Ended 31 December MOVEMENT ON RESTRICTED FUNDS Income Payments Transfer Net Donations Interest Expenses Distribution Between Funds Movement Lighting Fund Gift-aided Donations 4, ,000 Gift Aid Receipts 1, ,000 Allocated to heating (Church running expenses) - - (2,000) - - (2,000) Allocated to Diocesan Quota - - (3,000) - - (3,000) Demelza House (222) Royal British Legion (436) Children's society 45 - (45) , (5,703) Net At 01/01/14 Movement At 31/12/14 Lighting Fund 4, ,782 Demelza House Royal British Legion Children's society , ,782 The purpose of each fund is as detailed below Lighting Fund Theadora Trust Royal British Legion Children's society To raise money for a new lighting system Money raised from Lent appeal and harvest service Collection from Remembrance day service 10 PAYMENTS TO PCC MEMBERS No payment of expenses were paid to any PCC member. Page 11

13 Receipts The Benifice of Biddenden and Smarden Joint Account Receipts and Payments Account for the Year Ended 31 December 2014 Unrestricted Designated TOTAL FUNDS Funds Funds 31-Dec Dec-13 Contribution from All Saints, Biddenden 6,200-6,200 5,350 Contribution from St Michaels, Smarden 6,300-6,300 5,350 Dontion re wedding fees , ,750 10,700 EXPENDITURE Clergy Expenses 2,467-2,467 2,177 Upkeep of Services 1,289-1,289 1,139 Church Administration 1,849-1,849 1,663 Salaries - Organist 2,312-2,312 2,590 Wedding Expenses Salaries - Administrator 3,611-3,611 3,938 11, ,603 11,507 Excess of Receipts over Payments / Receipts (Payments) over ,147 (807) Cash at Bank 1st January ,040 Cash at Bank 31st December , , I confirm that I have audited the above figures in accordance with the vouchers and ledgers produced and they are the true picture of the position.... Honorary Auditor