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PCC TREASURER'S REPORT For the first time in four years the accounts on the following pages record a surplus on the ordinary activities of the parish. Although clearly to be celebrated, the accounts have to be interpreted with care: the real in-year surplus to 31 December 2007 was a very modest £751 and not the apparent £14,714 shown at first glance. The difference between these figures is due to the Ripon & Leeds Diocesan Board of Finance waiving £13,963 of outstanding 'historic' Share. The PCC is grateful for their decision that demonstrates the Diocese recognises the problems of historic Share and the circumstances in which it arose. Ordinary unrestricted income, excluding insurance receipts, increased by £1,200 in 2007. Planned giving increased by just over £500 to £25,027 which is in line with the results of the 2006 stewardship campaign for a full 12 month period. 73 people give regularly through the stewardship scheme, by envelope or standing order. Excluding work directly funded by insurance receipts and the effect of the waived historic Share, ordinary expenditure decreased by £4,100 in 2007. The largest change was a reduction in property maintenance costs of £4,1 60 -chiefly because the previous year included some big jobs. Other changes in costs, both increases and decreases, were individually smaller and had little net effect. The performance of the Halls, best seen in note 4, again worsened, despite a welcome increase in usage and rental income. Cost increases, particularly for energy, increased the deficit (ie the net cost to the church) by £200. The policy of allocating 10% of all 'direct giving' to charities and missionary agencies outside the parish continued. The accounts show how much is due for 2007, but this will not be disbursed until the PCC decide how to allocate our giving at its meeting in May. Return to top of pageThere has been appreciable activity to raise funds for specific purposes ('restricted' funds). £12,712 was donated or raised for essential repairs to the St Peter's steeple through the SOS campaign. Of this £1,200 was raised in grants from the Allchurches Trust and Coutts Bank, £3,518 from fundraising~ activities and £7,694 from donations. Fundraising costs of £867 were incurred, which included printing a publicity leaflet. Grants of £11,500 were received for work at St Margaret's from Leeds City Council (for gates that have been installed) and from the West Leeds Healthy Living Network, the Church Buildings Committee and the Leeds Church Extension Society for the ramp at St Margaret's, work on which had just begun by the end of the year. During 2007 the PCC looked at the very difficult financial position that had developed over a number of years and decided on a range of measures one of which was to use our historic investments, where permissible, to reduce the accumulated deficit. With the help of the Diocesan Board of Finance, which acts as Custodian Trustee, a careful analysis of funds was undertaken and we were advised that, in the case of certain endowment funds (where income can be spent but not the original capital) investment gains can also be spent. The decision was taken to do this and, although the gains have not yet been realised (ie taken as cash), the presentation of the accounts has been changed to show all the unrealised gains on endowment funds as part of the general fund. This gives an accumulated general fund deficit of a little under £1 3,000. The aim now is to achieve annual surpluses over the next few years to eliminate this - a serious challenge, but an achievable one. Finally, thanks to all those involved in administering the finances of the parish and making up for the deficiencies of the treasurer: to Jim Curtin, the stewardship recorder and Gift Aid officer; to the stewardship counters; to Judith Armitage as Halls treasurer; and especially to Margaret Charnley for the endless work she does as 'assistant' treasurer. David Jorysz Treasurer SPECIAL NOTE TO THE ACCOUNTS The Draft accounts that follow on pages 19 to 25 were agreed by the Parochial Church Council and approved subject to the completion of an independent examination. The independent examination is currently underway, but will not be completed before the Annual Parochial Church Meeting on 27 April 2008. The meeting will be asked to adopt the accounts subject to the independent examiner not requiring any material change. |
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Notes to the Financial Statements for the Year ended 31st. December 2007 1. Accounting Policies The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards of SORP 2005. The financial statements have been prepared under the historical cost convention except for the valuation of investment assets, which are shown at market value. The financial statements include all transactions, assets and liabilities for which 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 of informal gatherings of church members. Funds Endowment funds are fund, the capital of which must be maintained; only income arising from investment of the endowment may be used either as restricted or unrestricted funds depending on the purpose for which the endowment was established, Restricted funds may only be expended on the specific object for which they were given. Any balance remaining at the end of the year must be carried forward as a balance on that fund. Unrestricted funds are general funds which can be used for PCC ordinary purposes. Funds designated for a particular purpose by the PCC are also unrestricted, Return to top of pageIncoming resources Planned giving, collections and donations are recognised when received. Tax refunds are recognised when due. Grants and legacies are accounted for when the PCC is legally entitled to the amounts due. All other income is recognised when it is receivable. All incoming resources are accounted for gross. Resources expended 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; any share unpaid at 31 December is provided for in these accounts as an operational (though not a legal) liability and is shown as a creditor in the Balance Sheet. Amounts received specifically for mission are dealt with as restricted funds. 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 accounts in accordance with s.96(2)(a) of the Charities Act 1993. Movable church furnishings held by the incumbent and churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the church's inventory, and are not included in the PCC's accounts. All expenditure incurred during the year on consecrated or benefice buildings and movable church furnishings, whether maintenance or improvement, is written off as expenditure in the SOFA and separately disclosed. The caravan held by the PCC on behalf of Bramley Family Holidays (a partnership with Sure Start Bramiey) has been capitalised and is depreciated on a straight line basis over 5 years. Investments are valued at market value at 31 December, Current Assets Amounts owing to the PCC at 31 December in respect of fees, rents or other income are shown as debtors less provision for amounts that may prove uncollectable. |
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