Income £169,644
Expenditure £173,219
The Treasury Team has responsibility for the proper stewardship of the PCC’s financial resources. The team’s activities range from giving strategic guidance to assist the PCC in the assessment of its budgets and disposition of assets, through to the day-to-day accounting for its income and expenditure. This includes the preparation of annual budgets and quarterly accounts for review by the PCC.
During the year, the team undertook the following:
In Sections 1–6 above, the voluntary activities of St Peter’s are detailed. It is estimated that in 2007 these activities represented about 19,000 (2006: 18,800, as amended from the reported figure last year) unpaid hours given by the members.
Set out below are commentaries on the financial results and the Financial Statements for the PCC for 2007.
In 2007, our voluntary income was as follows:
| 2007 | 2006 | 2005 | |
| Voluntary Income* | £97,261 | £96,626 | £95,749 |
| % Change | 0% | 0% | 17% |
| *Excluding refurbishment, sundry donations and gifts-in-kind | |||
In 2007, our Total Incoming Resources (including voluntary income) reduced by £6,809 to £169,644 due the net effect of the following:
Our costs this year have been well controlled with an overall decrease of £1,158 although this net impact arises from a number of major changes in our costs:
The impact of these cost changes together with other inflationary and service level increases results in Total Resources Expended of £173,219 (2006: £174,377).
Overall we had a small deficit for the year of £3,575 (2006: a surplus of £2,076) before taking account of fixed asset and investment asset valuation changes.
Last year, the PCC was advised that we should undertake a stewardship programme to increase voluntary giving to match expected future increases in costs and such a programme was launched in September (see 4.5 above). The results of the programme were very encouraging are in summary were as follows:
The annual impact of this programme will be only felt in 2008, as the increased giving rates only applied towards the end of 2007.
The PCC believes that it has sufficient financial resources to meet its current needs and has therefore prepared the financial statements on a going concern basis.
The PCC retains a range of unrestricted and restricted funds which are described in Notes 10-13 of the Financial Statements. Unrestricted reserves at 31 December 2007 stand at £851,842 (2006:£881,426) as follows:
| 2007 | 2006 | |
| £ | £ | |
| Reserve Fund | 9,141 | 17,634 |
| Property Related Funds | 66,000 | 57,000 |
| Revaluation Reserve | 775,000 | 805,000 |
| Little Gems | 1,701 | 1,792 |
| 851,842 | 881,426 |
The Reserve Fund is the PCC’s general reserve and is held to cover its day-to-day activities.
The Property Related Funds are amounts set aside to cover quinquennial repairs or to finance unexpected building costs. During 2007 a total of £9,000 was transferred to increase the amounts set aside. The PCC expect that this reserve will be used within the next five years although it will be replaced as the PCC see fit, dependent on future building plans.
The Revaluation Reserve is principally represented by the Church Hall building and St Peter’s Lodge, a residential investment property. It is the current intention of the PCC to retain both of these properties for its use and to generate rental income, both of which are important to the PCC’s activities. Therefore this fund will remain for the foreseeable future. The reduction of the revaluation reserve in 2007 arises from the valuation being undertaken this year by an external valuer using a replacement cost basis for the Church Hall whereas previously the valuation was based on an insurance value, indexed for building cost changes.
It is the PCC’s general policy to use the available funds from Endowment and Restricted funds so as to reduce the call on normal income. In this way, this year the Reserve Fund has benefited by £7,374 by the use of restricted funds to cover expenses in the year.
The PCC’s approach to the management of its reserves is prudent but consistent with the requirement to use its resources to fund its activities to meet its vision. The policy on reserves is reviewed each year at the time of preparing the financial statements.
The policy of the PCC has been to invest surplus funds in low-risk interest-bearing investments which provide flexibility without penalty and which meet ethical criteria consistent with the PCC’s vision. The PCC does not invest its surplus funds in higher risk investments such as equities or corporate bonds. During this time of turmoil in the credit markets, this policy has safeguarded the PCC’s funds and remains suitable for the time being.
During the year, the Treasury Team has regularly reviewed the level of funds in the interest-bearing current account to ensure that arrangements were suitable for our needs. Where funds were held in excess of expected needs, transfers have been made to C0IF Charities Deposit Fund which earns a better rate of interest.
It remains the policy of the PCC to donate each year an amount equal to a proportion (currently 12.5%) of its budgeted voluntary income from regular giving, for the work of Christian mission outside the parish, both abroad and in the UK. In 2007, donations were above this level (see note 3(b) to the Financial Statements) as the Mission Support Team was given approval to spend an additional £2,500 that they had under spent in 2006.