Charity number 1132856

DIOCESE OF LIVERPOOL

Our Lady and St Nicholas

Liverpool

Annual Report

of the Parochial Church Council

Year ending 31st December 2012

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Annual Report for the Year Ended 31st December 2012

Administrative information Our Lady & St Nicholas, Old Churchyard, Chapel Street, Liverpool. L2 8TZ Official correspondence to the Parish Administrator, Church Office at the above address.

PCC Members During the year the following served as members of the PCC: Rector: The Revd Steven Brookes(Chair) Curate: The Revd John Williams (to July 2012) Assistant Priest: The Revd Michelle Montrose (from September 2012) Parish Assistant: Matthew Harbage (to August 2012) Joseph Cotterill (from September 2012) Readers: Mrs Margaret Sadler Miss Joyce Ashcroft Wardens: Mr Roger Merchant Captain Peter Woods Deanery Synod Representatives: Miss Joyce Ashcroft (Deanery Lay Chair) Mrs Margaret Sadler (Deanery Secretary) Secretary: Mrs Margaret Sadler Treasurer: Mrs Caroline Blower Other Elected Members: Mrs Sue Ashcroft Mr. David Howard (to April 2012) Mr. Nick Ledingham Mr. Peter Summerfield (Lay Vice-Chair from January 2013) Mr Peter Kennerley (to December 2012) (Lay Vice-Chair) Miss Angela Willett Mrs Sarah Wrightson Mrs Rosalie Inglis Miss Harriet Forward(to April 2012) Mrs Bernice Cruise(to April 2012)

Mrs Mary Brady Mrs Pauline Lewis Mr Tim Gray

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Parish Advisors

Bankers: Barclays Bank PLC, Liverpool City Business Centre, 48b-50 Lord Street, Liverpool L2 1TD Investments: Geoff Tym, Investec Investment Management, 100 Old Hall Street, Liverpool L3 9AB

Architect: Maggie Mullan, Austin Smith-Lord, Port of Liverpool Building, Pier Head, Liverpool L3 1BY Independent Examiner: Susan Buckley, HBD Accountancy Services LLP, Gladstone House, 2 Church Road, Liverpool L15 9EG Day to day management control of the Church is exercised by the incumbent The Revd Steven Brookes and wardens Mr Peter Woods and Mr Roger Merchant, contactable via the church office on 0151 236 5287

Structure, Management and Governance

Our Lady & St Nicholas PCC operates under the Parochial Church Council Powers Measure 1956. The PCC was required to register with the Charity Commission during 2009 following a change in Charity Law. Registration was confirmed in September 2009. Registered Charity No1132856. Members of the PCC are either ex-officio or elected by the Annual Parochial Church Meeting (APCM) in accordance with the Church Representation Rules. All church members are encouraged to register on the Electoral Roll and stand for election on the PCC. Other related trusts:

Liverpool Blitz Memorial Fund – registered charity 1081035, the incumbent and 1 member of the PCC are trustees. OLSN Educational Fund - registered charity 1068147, all members of the PCC are trustees. Sub-committees

The Standing Committee - the only committee required by law. It meets at least once in the interval between scheduled PCC meetings to implement PCC resolutions, to transact other business on behalf of the PCC and to set future agendas. Membership comprises Incumbent, Curate, Wardens, PCC Secretary, PCC Treasurer and Lay Vice Chair. The Investment Committee - meets annually to advise the Treasurer and Council on Parish investments. Membership comprises PCC Treasurer and the Investment advisor. The Church and World Action Committee- meet at least twice a year to discuss the distribution of donations to supported groups. Membership comprises the former Lay vice Chair, members of the PCC and members of the congregation.

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Objectives and Activities

The PCC (Powers) measure 1956 states the PCC “is to co-operate with the minister in promoting in the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical”

Our objectives for 2012 were: Mission & worship

Continue a programme of suppers, quizzes and other social events on the church premises, with emphasis on events with low preparation costs.

Consolidate some of the ideas and changes made in our worship over the last two years.

To undertake a PCC Day away following the APCM to discuss issues relating to Church Growth and Objectives

Our own church community to arrange and present two concerts on our premises in order to raise the profile of our mission and to raise funds.

Provide clearer service sheets for our congregation.

Provide encouraging and user-friendly material on our website and in church about our commitment to, and abiding by, Church of England policy towards those who wish to be baptised, married and have their funerals in the church.

To work proactively with other organisations in the city to maintain the safety, security and welcoming appearance of our church premises.

Implement plans for more events in our church gardens

New policies and procedures relating to safeguarding of Children to be drawn up together with those of Young People and Vulnerable Adults

Enhancement and development of church buildings

The renewal of the central heating boilers to be carried out late summer

Continue fundraising for refurbishment of Arctic Convoy Memorial

Market our meeting room facilities to external organisations

Refurbish the Alexandra Room, Alexandra Room Kitchen, Library and Quiet Room

Continue to upgrade church electrical circuits

Look to improve security on the garden door

Full terrier and inventory to be carried out Finance, Giving and Fundraising

Continue to monitor expenditure closely

Schedule regular communications about tax-efficient giving

Continue to review and realise one-off sources of income

Activities and achievements against objectives:

Mission & worship Father John Williams left Liverpool Parish Church in July to take up a position as priest in Aintree

The RevdMichelle Montrose joined us in September and has taken responsibility for weddings

The Parish Assistant Matthew Harbage left at the end of August to begin training for the priesthood

He was replaced by Joseph Cottrell who joined us in September for a twelve month period

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Weekly service sheets were updated to make them clearer to follow

The Parish Church continues to be used by the civic and military communities as a location for special services and events

Lent Addresses were held in the Wednesday lunchtime mass with music; attendance was very good,with numbers ranging from 50 to 100

Enhancement and development of church buildings The renewal of the central heating boilers was put back until summer 2013 to allow for further quotes and look

at additional work involved, e.g. staging and stonework.

Arctic Convoy Memorial - Peel Ports sponsored the removal of the old memorial pedestals and donated two granite blocks. Additional stone work is still to be carried out.

We continued to market our meeting room facilities to external organisations and were able to let both meeting rooms and car parking spaces to a local company

The refurbishment of the Alexandra Room was placed on hold until funds are made available

We continued to upgrade church electrical circuits

A full terrier and inventory carried out

Finance, Giving and Fundraising The church made a cash surplus of £4,736 in the year and the value of the church‟s investments increased by

£15,907, increasing the church‟s assets by £20,643 in the year

Income for the year fell by £9,330

The boiler fund appeal raised £15,329 with gift aid of £838 to be recovered in 2013

Income from our investments remained stable despite the tough economic conditions

Expenditure decreased by £24,418 in the year

Our distribution to charities in the year was 10% of our distributable income

Reserves Policy The PCC maintains reserves comprised of a sum equivalent to approximately 3 months normal income and a cash flow reserve of £10,000. This amounts to a total of approximately £40,000. The reserves policy will be reviewed annually by the PCC. The reserves throughout the year were at least this amount.

Plans for the future In 2013 we have planned the following: Mission & worship

Our new Assistant Priest David Baverstock will join us at the end of April

The development of pastoral teams to visit people at home to assist with the distribution of home Communion

Review the number of week day services

Review our welcome to carol service groups

Review our ministry to hotels and the leisure industry in the parish

Revitalise a programme of suppers, quizzes and other social events on the church premises

Provide encouraging and user-friendly material on our website and in church about our commitment to, and abiding by, Church of England policy towards those who wish to be baptised, married and have their funerals in the church.

To work proactively with other organisations in the city to maintain the safety, security and welcoming

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appearance of our church premises

Review of the electoral roll will take place

Implement plans for more events in our church gardens Enhancement and development of church buildings

The renewal of the central heating boilers to be carried out late summer

Continue fundraising for refurbishment of Arctic Convoy Memorial with aim to have Memorial restored in May

Continue to market our meeting room facilities to external organisations

Refurbish the Alexandra Room if funding allows

Continue to upgrade church electrical circuits

Redecorate and refurbish Pepys Flat prior to arrival of our new Curate.

New Quinquennial Survey to be carried out

Glass doors to be supplied and fitted to replace present internal main Narthex Wooden doors

Complete work to meet fire service requirements

Finance, Giving and Fundraising

Appoint a new Treasurer

Review the way in which jobs are shared within our treasury team

Continue to monitor expenditure closely

Complete a voluntary rate appeal

Schedule regular communications about tax-efficient giving

Promote knowledge of legacies and wills

Ensure church is meeting requirements of PAYE real time legislation by April

Continue to review and realise one-off sources of income

Declaration The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity‟s trustees ____________________________________ Peter Woods (Warden)

Date_______________________________

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INDEPENDENT EXAMINERS REPORT To the PCC of Our Lady & St Nicholas

This report on the accounts of the PCC for the year ended 31st December 2012 which are set out on pages 8 to 14 is in respect of an examination carried in accordance with the Church Accounting Regulations 2006 („the Regulations‟) and section 145 of the Charities Act 2011 („the Act‟). Respective responsibilities of the PCC and the examiner As the members of the PCC you are responsible for the preparation of the accounts; you consider that the audit requirement of the Regulations and section 144 of the Act does 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 the 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. That examination includes a review of the accounting records kept by the PCC and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. 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 Regulationshave 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. Susan Buckley, HBD Accountancy Services LLP, Gladstone House, 2 Church Road, Liverpool. L15 9EG

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Parochial Church Council of Our Lady and St Nicholas

Statement of financial activities For the year ended 31 December 2012

Notes

Unrestricted Funds

Restricted Funds

Endowment Funds

Total

Prior Year Total

Incoming Resources Voluntary Income 2(a) 61,281 15,329 - 76,609 71,048 Activities for generating funds 2(b) 9,483 - - 9,483 12,692 Investments 2(c) 15,720 - - 15,720 15,320 Church Activities 2(d) 6,396 1,781 - 8,177 11,764 Other 2(e) - - - - 8,496 Sub Total 92,880 17,110 - 109,990 119,320

Resources Expended Costs of generating voluntary income 3(b) 1,513 - 1,513 1,092 Fund-raising trading costs 3(c) 116 - 2,179 2,295 2,270 Church activities 3(a) 80,225 2,647 - 82,872 99,312 Other costs 3(d) 14,582 - - 14,582 16,618 Staff Costs 4 3,992 - - 3,992 10,380 Sub Total 100,428 2,647 2,179 105,254 129,672

Net Incoming ResourcesBefore Other Recognized Gains & Losses Net Incoming Resources (7,548) 14,463 (2,179) 4,736 (10,352)

Gains on investment assets On disposal 5(b) - - 1,802 1,802 - On revaluation 5(b) (400) (119) 14,624 14,105 (8,296)

Net Movement in Funds Movement (7,948) 14,344 14,247 20,643 (18,648) Balances at 1/1 70,672 26,003 358,168 454,843 472,066 Balances at 31/12 62,724 40,347 372,415 475,486 454,843

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Parochial Church Council of Our Lady and St Nicholas Balance Sheet

For the year ended 31 December 2012

Notes 2012 £

2011 £

Fixed Assets Tangible 5(a) 1,721 2,420 Investment 5(b) 387,069 374,056 Sub Total 388,790 376,476

Current Assets Stock - - Debtors 6 15,869 18,104 Cash at bank and in hand 79,746 87,500 Sub Total 95,615 105,604

Liabilities Creditors - amounts falling due < 1 year 7 (8,918) (27,237)

Net Current Assets/ (Liabilities) Total assets less current liabilities 86,697 78,367

TOTAL NET ASSETS 475,487 454,843

Unrestricted 8 62,725 70,672 Restricted 40,347 26,003 Endowment 372,415 358,168

TOTAL PARISH FUNDS 475,487 454,843

Approved by the Parochial Church Council on 14th March 2013 and signed on its behalf by:

__________________________________ ____________________________________ Steven Brookes (PCC Chairman) Caroline Blower ACMA (Treasurer) The notes on pages 10 to 14 form part of these accounts

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Notes to the financial statements

For the year ended 31 December 2012

1. ACCOUNTING POLICIES The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with applicable accounting standards and the 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 that are informal gatherings of Church members. Funds Endowment funds are funds, the capital of which must be maintained; only income arising from the 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 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 purpose or 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. Unrestricted funds are general funds, which can be used for PCC ordinary purposes.

Incoming Resources

Planned giving, collections and donations are recognised when they are received. Grants and legacies to the PCC are accounted for as soon as the PCC is notified of its legal entitlement and the amount due is quantifiable and its ultimate receipt by the PCC is reasonably certain. Dividends are accounted for when due and payable and interest entitlements are accounted for as they accrue. Tax recoverable on such income is recognised in the same accounting year. Income tax recoverable on gift aid donations is recognised when the income is received. All other income is recognised when it is receivable. All incoming resources are accounted for gross.

Resources Used

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation or constructive obligation on the PCC. The Diocesan Quota and Stipend are accounted for when paid. Any amounts unpaid at 31 December are provided for in these accounts as an operational (though not a legal) liability and are 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 beneficed property of any kind is excluded from the accounts by s.96 (2) (a) of the Charities Act 1993. Moveable church furnishings held by the Rector and Churchwardens on special trust for the PCC and which require a faculty for disposal are accounted for as inalienable property unless consecrated. They are listed in the Church‟s inventory, which can be inspected (at any reasonable time). For inalienable property acquired prior to 2000 there is insufficient cost information available and therefore such assets are not valued in the accounts. Items acquired since 1 January 2000 have been capitalised and depreciated in the accounts over their currently anticipated useful economic life (initially over 20 years) on a straight-line basis. Equipment used within the church premises is depreciated on a straight-line basis over 4 years. All expenditure incurred in the year on consecrated or beneficed buildings, individual items under £500 or on the repair of moveable church furnishings acquired before 1 January 2000 is written off. Investments are valued at market value. Realised gains or losses are recognised when investments are sold. Unrealised gains or losses are accounted for on revaluation of investments at 31 December.

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2. INCOMING RESOURCES Unrestricted

Funds £

Restricted Funds

£

Endowment Funds

£

Total

£

Total Prior Year

£ 2(a) Voluntary Income

Gift Aid Donations 25,730 - - 25,730 26,397 Tax recoverable 7,850 - - 7,850 9,823 Other 2,902 - - 2,902 3,293 Collections 12,436 - - 12,436 11,812 Grants - - - - - Donations, appeals 12,362 15,329 - 27,691 18,724 Legacies - - - - 1,000 Total 61,280 15,329 - 76,609 71,048

2(b) Activities for generating funds Fundraising non-church purposes

7,561

-

-

7,561

10,400

Fundraising – Misc 1,261 - - 1,261 1,617 Catering 661 - - 661 675 Total 9,483 - - 9,483 12,692

2(c)Income from investments Dividends, interest & tax recoverable Rent Total

15,220

500 15,720

- - -

- - -

15,220

500 15,720

15,320

- 15,320

2(d) Income from Church Activities Parochial Fees retained by PCC

3,883

1,781

-

5,664

8,449

Church hall lettings 2,514 - - 2,514 3,315 Total 6,397 1,781 - 8,178 11,764

2(e) Other incoming resources Insurance claims/sale of fixed assets

-

-

-

-

8,496

TOTAL INCOMING RESOURCES

92,880

17,110

-

109,990

119,320

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3. RESOURCES EXPENDED Unrestricted

Funds £

Restricted Funds

£

Endowment Funds

£

Total

£

Total Prior Year

£ 3(a)Church activities Mission & charitable giving Overseas 1,500 - - 1,500 1,000 Relief & development agencies

2,000

-

-

2,000

-

Home missions (4,991) - - (4,991) 5,000 Secular charities 6,500 710 - 7,210 760 Ministry Diocesan parish share 19,132 - - 19,132 18,846 Other ministry costs Clergy expenses 2,218 1,937 - 4,155 6,433 Parsonage 2,079 - - 2,079 1,772 Assistant staff 6,513 - - 6,513 7,585 Church running & maintenance Church running expenses 29,259 - - 29,259 28,704 Church maintenance 8,047 - - 8,047 11,167 Upkeep of services 3,538 - - 3,538 4,380 Depreciation 699 - - 699 483 Parish magazine costs - - - - -

Walton Park 459 - - 459 439 Parish centre Running costs 3,274 - - 3,274 3,485 Other property upkeep - - - - 9,258 Major repairs / works - - - - - Total 80,227 2,647 - 82,874 99,312

3(b) Generation of voluntary income Stewardship costs 1,513 - - 1,513 1,092

3(c)Fundraising costs trading Fundraising costs 5 - - 5 - Fundraising costscatering 111 - - 111 163 Investment management - - 2,179 2,179 2,107 Total 116 - 2,179 2,295 2,270

3(d) Other resources expended Other 920 - - 920 832 Support 13,662 - - 13,662 15,786 Total 14,582 - - 14,582 16,618

TOTAL EXPENDED 96,436 2,647 2,179 101,262 119,292

4(a) Staff Costs (Wages & Salaries) Organist 2,620 - - 2,620 2,721 Security 72 - - 72 5,959 Choir 1,300 - - 1,300 1,700 Total 3,992 - - 3,992 10,380

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5(a) FIXED ASSETS

Tangible (Unrestricted)

Freehold land & building

£

Church equipment

£

Total

£ Actual / Deemed cost

As at 1/1

-

4,043

4,043

Disposal - - - Additions at cost - - - As at 31/12 - 4,043 4,043 Depreciation

As at 1/1

-

1,623

1,623

Withdrawn on disposals

-

-

-

Charge for year - 699 699 As at 31/12 - 2,322 2,322

5(b) Investments 2012

£ 2011

£ GLADSTONE FUND

Historical cost

129,763

123,980

Market value 138,525 130,724 HAMPSON BEQUEST

Historical cost

93,424

94,571

Market value 97,002 96,212 SUNDRY ENDOWMENTS

Historical cost

98,261

98,256

Market value 129,305 124,054 OLSN EDUCATIONAL FUND

Historical cost

19,902

19,902

Market value 19,902 19,902 Accrued Interest 2,335 3,164

TOTALS

Historical cost

341,350

336,709

Market value + Accrued Interest 387,069 374,056

Held within the Hampson Bequest are the following two items Repairs Fund Market value 5,723 5,677 Unrestricted Legacies Market value 6,596 6,542

The market value as at 31stDecember represents investments for:

Unrestricted funds 12,319 Restricted funds 2,335 Endowment funds 372,415

The Gladstone Fund was established following the sale of 62 Rodney Street, Liverpool, the birthplace of W.E.Gladstone. The capital cannot be spent but up to 4/5 of the fund can be borrowed interest free towards the costs of a new Rectory. The income from the fund is otherwise available to the PCC without restriction. The Hampson Bequest is the overall title of the fund which now contains both the legacy given under the will of John Henry Hampson as well as an earlier bequest (the James Cross Fund), to which has been added PCC repair funds above the current £3,000 cash holding and a portion of two unrestricted legacies, pending a decision on a suitable memorial to the donors. Only the unrestricted funds can be spent, but all Hampson Fund income is unrestricted. The Our Lady & St Nicholas Educational Fund was established in 1998 with the proceeds of the sale of the former church school in Vauxhall. The income from this fund is to be used to assist the education of both the young people associated with the Church and in the Vauxhall area.

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6. DEBTORS (Unrestricted Funds) 2012

£ 2011

£ Tax recoverable 7,850 7,500 Other debtors 8,019 10,604 Total 15,869 18,104

7.LIABILITIES (Amounts falling due in one year) 2012

£ 2011

£ Accruals for utility & other costs 8,918 27,237 Other creditors - - Total 8,918 27,237

8. FUNDS Balance at 1/1

Incoming resources

Resources expended

Investment gains

Balance at 31/12

Unrestricted fund movements

Café fund 104 661 711 - 54 Legacies 18,054 - - (446) 17,608 Rector‟s fund 1,047 301 972 - 371 Repair fund 8,673 - 0 46 8,719 Accumulated funds 42,794 91,919 98,745 - 35,978 Total 70,672 92,881 100,428 (400) 62,725 Restricted fund movements

Chapels Fund 373 - - - 373 Blitz Memorial Fund 9,798 - - - 9,798 Arctic Convoy Memorial 1,190 - - - 1,190 OLSN Educational Fund 3,164 - 710 (119) 2,335 Boiler 4,225 15,329 - - 19,554 Sound system 4,870 - - - 4,870 Misc restricted 2,132 1,781 1,937 - 1,976 Catering 251 - - - 251 Total 26,003 17,110 2,647 (119) 40,347

9. ANALYSIS OF NET ASSETS BY FUND

Unrestricted Funds

£ Restricted Funds

£ Endowment Funds

£ Total

£ Prior Year

£ Tangible fixed assets 1,721 - - 1,722 2,420 Investment fixed assets 12,319 2,335 372,415 387,069 373,551 Current assets 57,603 38,012 - 95,614 106,090 Current Liabilities (8,918) - - (8,918) (27,237) Total Funds 62,725 40,347 372,415 475,487 454,824