Little Malvern Priory
(Church of England)

LITTLE MALVERN PRIORY

CHURCH OF ST GILES

PAROCHIAL CHURCH COUNCIL

ANNUAL REPORT AND FINANCIAL STATEMENTS

2010

1 Administrative information………………………… 3

2 Structure, governance and management…………… 4

3 Objectives and Activities………………………….….. 5

4 Membership and Attendance………….…………...… 5

5 Achievements and Performance …………………….. 6

6 Maintenance…………………………………………….8

7 General………………………………………………….8

8 Financial Review……………………………………….8

Annex ACCOUNTS FOR THE YEAR ENDED …………11

31 DECEMBER 2010

1 Administrative information

Little Malvern Priory (St. Giles) is situated in Little Malvern, Worcestershire. It is part of the Diocese of Worcester within the Church of England. The Parochial Church Council (PCC) is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure. It is excepted by order from registration with the Charity Commission. The correspondence address is c/o the Revd Canon Eric Knowles , 45 Wykewane, Malvern WR14 2XD.

PCC members who served from 1st January 2010 until 18^th May 2011 are:

Priest in Charge and Chairman The Revd Canon Eric Knowles

45 Wykewane

Malvern WR14 2XD

Deanery Synod Representatives Mrs Irene Tretheway

2 Benbow Close

Malvern Wells WR14 4JJ

Mr Ramon Wyre (Electoral Roll Officer)

24 Croftdown Court

Abbey Road

Malvern WR14 3HZ

Churchwardens Lt-Col Robert Steel

Vine Tree Cottage

Upper Welland Road

Malvern WR14 4LD

Mr John Chatten

17 Tennyson Drive

Malvern WR14 2TQ

Treasurer Mr Bernard Pierce (until February 2010)

15 Chase Road

Upper Welland

Malvern WR14 4JY

Treasurer Mr Peter Williams (from February 2010)

66 St Andrew’s Road

Malvern

WR14 3PP

Secretary Mr Derek Webb

White Lodge

214 Wells Road

Malvern Wells WR14 4HD

Other elected members Lt-Col Alistair Booth

St Andrews

134 Longridge Road

Malvern WR14 3JJ

Lt-Col Michael Pollard (until May 2010)

2 Southlawns

Peachfield Road

Malvern Wells WR14 4RY

Ex officio Mrs Alexandra Berington (Lay Patron)

Little Malvern Court

Little Malvern WR14 4JN

Sir Nigel Nicholls (Chairman, Finance Committee)

Loddiswell

28 Avenue Road

Malvern

WR14 3BG.

2 Structure, governance and management

2.1 Membership

The method of appointment of PCC members is governed by and set out in the Church Representation Rules. The ten current members include three ex officio members, five elected lay members and two co-opted members. The co-opted members include the Chairman of the Finance Committee and the Honorary Treasurer. All Church attendees are encouraged to register on the Electoral Roll and to stand for election to the PCC.

2.2 Cost of management

The cost of management has been kept to a minimum by using e-mails to distribute agendas and minutes. The PCC generally meets in a local hall at a cost of £8 per meeting. No other costs have been incurred.

3 Objectives and Activities

Little Malvern Priory PCC is responsible for:

a. the promotion of the Gospel of our Lord Jesus Christ according to the doctrines and practices of the Church of England.

b. supporting the Chaplain, the Revd. Canon Eric Knowles in promoting in the ecclesiastical parish the whole mission of the church, pastoral, outreach, social and ecumenical.

c. the maintenance of the church of St Giles (Little Malvern Priory) of Little Malvern.

It is supported by volunteers who carry out the following duties:

a. Lesson reading

b. Sidesmen

c. Flower arrangement

d. Sacristan

e. Light refreshments

f. Organ playing

g. Choir music

h. Pastoral contact

i. Parish newsletter

j. Publicity

k. Preparation & Maintenance of Electoral Roll

l. Maintenance of the churchyard

m. Maintenance of the website,

The Finance Committee is responsible for advising the PCC on financial matters and also for preparing the Annual Report.

4 Membership and attendance

4.1 Church attendance

There are 108 members on the Church Electoral Roll, 100 of whom are not resident within the parish. Four names were added during the year and two were removed. The average weekly attendance, excluding major festivals, was 47.6.

4.2 PCC meetings

The full PCC met five times during the year; the average attendance was 83%. The Finance Committee met between meetings and its deliberations were reported to the full PCC.

5 Achievements and Performance

5.1 Spiritual growth (Pastoral)

5.1.1 Lent

Over five sessions we looked at the issues that faced the Early Church and considered how these can be seen in the issues facing the church of today. These were led by the Revd Canon Alvyn Pettersen.

5.1.2 Advent preparation

On two evenings we thought about “God Incarnate in the Church”. We had a different speaker on each evening: the Ven Ron Hesketh and the Ven Roger Morris.

5.1.3 Review

Prompted by the Diocesan presentation on Giving for Life, we decided to hold a Review of our church life. This took place on 7^th November. We set ourselves four questions:

What more should be done to sustain LMP as a robust worshipping community?
How best should we care for ourselves as a congregation?
How best should we engage with the wider church?
How best should we engage with the wider community (i.e., secular or non-Christian)?

The Review was led by a member of our congregation, Dr Chris West, who also produced the report on it. The PCC undertook to consider the many constructive suggestions made at the Review meeting and to produce proposals for implementation. This was a significant event in the life of the church and it is recognised that it will take some time for the PCC to make a complete response.

5.1.4 BigLittle Church

The PCC decided to cancel the regular LMP service on the day of BigLittle Church (29 August) in order to support more fully the event on the Three Counties Showground. We had already provided funding for the hire of the barn at the Showground. We put on a display reflecting the life of our church and joined in a service of Holy Communion led by the Bishop of Dudley, the Rt Revd John Walker.

5.2 Outreach

5.2.1 Open Day

Thanks to the generosity of Mrs Alex Berington, we were able to use the gardens of Little Malvern Court for an Open Day event in May. This enables us to meet around 400 visitors and welcome them to the church.

5.2.2 Open door policy

We continue to keep the church open for visitors during the hours of daylight.

5.3 Social

5.3.1 Working Parties

On two occasions (April and September) we held working parties to spring-clean the church and tidy up the churchyard. These were followed by a picnic lunch in the churchyard.

Following our Harvest Thanksgiving service we had a Harvest lunch in Little Malvern Court, by courtesy of Mrs Alex Berington.

We held a Christmas social evening when we entertained ourselves with readings and carol singing.

5.4 Special occasions

5.4.1 Marian Tosello memorial

On 28^th March we held a special service to commemorate the stained glass that had been placed in the North Window in memory of Mrs Marian Tosello. Members of her family came for the service from Switzerland and Dubai ; the preacher was the Bishop of Worcester, the Rt Revd Dr John Inge. The music was provided by the Cradley Singers. A reception was held in Welland Village Hall after the service.

5.4.2 Friends Choral Evensong

The service was held in June. The Preacher was the Archdeacon of Worcester, the Ven Roger Morris, and the music was provided by the choir from Longdon St Mary’s.

5.4.3 Cadet Forces Celebration

The Revd Canon Knowles organised a special service on 5^th September at Worcester Cathedral for cadets, to celebrate 150 years of cadet forces. The preacher was the Bishop to the UK Armed Forces, the Rt Revd Stephen Venner.

5.5 Flowers in churchyard and car park

5.5.1 Thanks to a volunteer, Peter Garner, 73 flowers and plants in our churchyard and car park have now been identified and logged.

5.6 Family events

5.6.1 Deaths

Two people who were associated with our church died during the year. They were

Betty Tilt and Michael Storer.

5.6.2 Weddings

During the year we were pleased to celebrate the weddings of:

Brendon Giles & Andrea Allen

Gregory Morris & Natalie Gooden

Tom Diment & Danielle Nixon

5.6.3 Baptisms

We welcomed into the church the twins Nicolai & Evelina Alassov from Alexandria, Australia, grandchildren of Barbara & Ramon Wyre. Their parents were married in our Church in 2008.

We also welcomed Lilly Winwood into the church.

6 Maintenance

6.1 The routine maintenance tasks have been carried out as usual without any problems. The quinquennial inspection was carried out in October by our architects, Stainburn Taylor of Ledbury. We had not received the full report by the end of the year but we had been given an indication of the probable recommendations. It seemed that, although no major work was required, about 20 lesser tasks were recommended, none of which would require a faculty.

6.2 The PCC agreed that some improvements in the supply of hot water and ventilation in the toilets and kitchen were required. Some work was carried out to define the tasks and to seek estimates.

7 General

We were well served during the year by volunteers undertaking tasks for the church ranging from sidesmen to churchyard maintenance. We entered the “It’s Your Neighbourhood” “Heart of England In Bloom” campaign and earned an “Award of Distinction”.

8 Financial Review

8.1 Overview

At the end of 2010 the Church’s financial position looked very much as it did at the end of 2009. Income held up reasonably well during the year, despite the economic situation, and expenditure was contained. There was a modest net surplus of £2,379, bringing the total of the Church’s financial resources (all funds) up to £100,821. This relatively benign assessment of the Church’s financial position hides, however, some indicators which suggest that a close eye will need to be kept on the financial situation. Nearly all (£2,000) of the surplus for the year, for example, is attributable to continued recovery in the value of the investment fund, which remains a notional – and variable - figure until it is drawn down.

8.2 Income

Income from standing orders, weekly envelopes and tax-efficient giving sources (Gift Aided contributions) all decreased during the year. Service collections (which are not tax-efficient) increased, as did the Gift Aid tax recovery. Historically low interest rates continued to affect the income from our deposit accounts held with the Central Board of Finance, although the recovery in the financial markets meant a continuing increase in the value of the Restoration and Repairs Investment Fund. The Friends of Little Malvern Priory again made a number of generous donations. The Parish Share was, as usual, paid in full. It is worth remarking that Little Malvern Priory is one of the minority of parishes in the Malvern Deanery which regularly pays its full Parish Share. As a result of a change in accounting practice, transfers from the General Fund to the Outward Giving Fund are no longer designated as separate expenditure and income items, thus making it difficult to draw direct comparisons with the income from previous years. While the overall effect of these movements was that total income from all sources for the year decreased to £48,511, compared with £51,108 in 2009, the reduction in income is entirely accounted for by the change in practice mentioned above, and is balanced by a similar reduction in expenditure.

Total 2008: £49,966

Total 2009: £51,108

Total 2010: £48,511

Sources of income 2008-10

8.3 Expenditure

Total expenditure for the year amounted to £46,132 (2009: £50,628). Most of this is accounted for by the Parish Share, the cost of which was slightly reduced owing to an overpayment in 2009. As with the income, re-designation of some of the categories of expenditure make it difficult to draw direct comparisons with earlier years, but the general pattern of expenditure did not vary greatly from 2009.

Total 2008: £45,990

Total 2009: £50,628

Total 2010: £46,132

Expenditure destinations (from Restricted and Unrestricted Funds) 2008-10

8.4 Reserves policy

It is PCC policy to maintain a balance on Unrestricted Funds which equates to six months’ unrestricted expenditure. Our unrestricted expenditure in 2010 was £40,618, so our reserves should be £20,309. Our actual balance of £21,071 in the Church Expenses Fund (unrestricted) is slightly higher than this, though the surplus (and more) will be used to meet a notional deficit of £1,319 in the Outward Giving Fund. The net effect will be a balance slightly below the six months figure. We currently have £81,186 in the Church Maintenance, Fabric Endowment, Service Maintenance and Stipend Endowment Restricted Funds, most of which (£56,434) is reserved for building repairs and restoration. Given the costs of maintaining ancient buildings, we consider this to be a prudent reserve. The modest remainder of the reserves is held to ensure that any unforeseen or unexpectedly high expenditure demands can be met without undue difficulty. It is our policy to invest our funds with the CBF Church of England Funds.

Annex ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2010

INDEX TO THE ACCOUNTS

1. ACCUMULATED FUNDS................................................................................................... 12

2. INDEPENDENT EXAMINER’S REPORT TO THE PCC....................................................... 14

3. ACCOUNTS SUMMARY TABLES...................................................................................... 15

4. RECEIPTS FOR BOTH GENERAL AND RESTRICTED FUNDS............................................ 16

5. NOTES TO GENERAL FUND RECEIPTS............................................................................ 17

6. NOTES TO RESTRICTED FUNDS RECEIPTS...................................................................... 18

7. INTEREST FOR BOTH GENERAL AND RESTRICTED FUNDS............................................ 18

8. EXPENSES FOR BOTH GENERAL AND RESTRICTED FUNDS........................................... 19

9.NOTES TO BOTH GENERAL AND RESTRICTED FUNDS EXPENSES................................. 20

1. ACCUMULATED FUNDS

The Church allocates its resources to six Funds, whose balances at 31 December 2010 were as follows:

2010 2009

£ £

General (Church Expenses) 21,071 17,564

Church Fabric 56,380 53,515

Service Maintenance 16,545 16,507

Stipend Endowment 8,062 9,001

Flowers 82 122

Outward Giving (1,319) 1,850

Total Funds at 31 December 2010 100,821 98,559

These Funds are distributed amongst deposit accounts held with the Central Board of Finance of the Church of England (CBF) and a current account with CAF Bank Ltd. The balances of these accounts

at 31 December 2010 were as follows;

CBF Accounts 2010 2009

£ £

PCC-X Church Expenses Account 17,390 17,302

Church Restoration and Repair Fund Account 12,913 12,848

Restoration and Repair Investment Fund Account 18,273 16,272

Fabric Endowment Trust Income Account 25,414 25,230

Service Maintenance Trust Income Account 16,624 16,509

Stipend Endowment Trust Income Account 9,072 9,001

Total CBF Accounts 99,687 97,160

CAF Bank Ltd Account: 1,134 1,399

Cash - -

Total Church resources at 31 December 2010 100,821 98,559

Endowments

In addition to its six Funds, the Church possesses three endowment trust funds: the Fabric Endowment, Services Maintenance and Stipend Endowment Trust Fund Accounts, which together constitute the Hookham Trust. The capital of the Hookham Trust is in the custody of the Diocese of Worcester. The interest on these trust fund accounts is paid into the respective CBF Trust Income accounts held by the PCC (shown above). The capital values of the Trust Funds at 31 December 2010 were:

Fabric Endowment Trust Fund: Restricted to expenditure on the Church

fabric and the Churchyard. The interest received is accumulated in the

Fabric Endowment Trust Income Account. 11,142

Service Maintenance Trust Fund: Restricted to expenditure on Service

Maintenance and the Fabric in equal parts, accumulated in the Service

Maintenance Trust Income Account. 6,642

Stipend Endowment Trust Fund: Restricted to expenditure on Stipends,

accumulated in the Stipend Endowment Trust Income Account. 5,266

Total Hookham Trust 23,150

PR Williams CBE The Revd Canon E G Knowles

Honorary Treasurer Chairman PCC

April 2011

2. INDEPENDENT EXAMINER’S REPORT TO THE PCC

Introduction

This report on the accounts of Little Malvern Priory PCC for the year ended 31 December 2010, which are set out on Pages 1 to 8 of the Annex, is in respect of an examination carried out in accordance with the Church Accounting Regulations 2006 (‘the Regulations’) and Section 43 of the Charities Act 1993 (‘the Act’).

Responsibilities

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 43(2) 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 Report

My examination was carried out in accordance with the General Directions given by the Charity Commission under Section 43(7)(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 financial statements 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 41 of the Act; and

· to prepare financial statements 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.

Honorary Examiner

April 2011

3. ACCOUNTS SUMMARY TABLES

4. RECEIPTS FOR BOTH GENERAL AND RESTRICTED FUNDS

General Fund Receipts	Note	*2010*	*2009*
Tax Efficient Giving		£	£
Standing Orders		14,110	{ 19,869
Gift Aid Donations		3,194	{ 19,869
Envelope Giving		4,263	5,507
Other Income
Church Collections		4,101	3,872
Offertory Box		397	264
Friends of Little Malvern Priory	1	5,283	4,168
Sundry Receipts	2	2,334	1,709
Gift Aid Tax Recovery		6,427	5,659
Legacies	3	500	-
Fundraising	4	3,443	-
Fund Transfer	5	(20)	-

General Fund Total		44,032	41,048

Restricted Funds Receipts

	Note	*2010*	*2009*
Outward Giving Fund	6	-	6,197
Fabric Endowment Fund	7	3,809	-
Hookham Trust receipts		56	169
Service Maintenance Fund
Hookham Trust receipts		34	101

Stipend Support Fund
Hookham Trust receipts		27	80

Flower Fund		20	173

Restricted Fund Total		3,946	6,720


Overall Total Receipts		47,978	47,768

5. NOTES TO GENERAL FUND RECEIPTS

Note 1: Friends of Little Malvern Priory 2010 2009

£ £

Heating and General Purposes 1,500 1,500

Insurance 1,833 1,833

Parish Share 1,000 -

Steeplejack – Roof Repairs - 835

Carpet 950 -

Total 5,283 4,168

Note 2: Sundry Receipts

PCC Fees 1,915 1,407

Coach trip to Worcester Cathedral- reimbursement 99 -

E Christmas cards 98 -

Harvest Lunch - 92

Miscellaneous Donations

Lever Memorial - 100

Bell Donation - 100

Friends’ repayment of cheque - 10

Richard III Society (USA) 87 -

Donation for floodlighting 20 -

Society of Worcester Organists 25 -

Malvern Link Ladies’ Club 25 -

Miscellaneous gifts 65 -

Total 2,334 1,709

Note 3: Legacies

Legacy from the estate of Michael Storer 500 -

Total 500 -

Note 4: Fundraising

Receipts from Open Day 3,351 -

Sale of Christmas Cakes: Friends of Little Malvern Priory 45 -

Harvest Lunch 47 -

Total 3,443 -

Note 5: Fund Transfer

Transfer from General Fund to Flower Fund (20) -

6. NOTES TO RESTRICTED FUNDS RECEIPTS

Note 6: Outward Giving Fund Receipts 2010 2009

£ £

Receipts from Open Day - 2,535

Remembrance Day Services - 192

Christmas Midnight Service - 141

Christmas Day Services - 114

Christmas Party Collection - 25

Other Services/Events - 85

Transfer from General Fund - 3,105

Total - 6,197

Note 7: Fabric Fund

Friends of Little Malvern Priory ~~(Transfer from General Fund)~~ 1,134 -

Proceeds of Insurance claim 675 -

Gain on Restoration and Repair Investment Fund 2,000 -

Total 3,809 -

7. INTEREST FOR BOTH GENERAL AND RESTRICTED FUNDS

Note 8: Interest on General Funds 2010 2009

CAF Bank Account 6 20

CBF Account 87 221

Total 93 241

Note 9: Restricted Funds

Fabric Fund (2010: excluding Gains/Losses on Restoration and Repair 193 2,692

Investment Fund: see note 7)

Service Maintenance Fund 84 252

Stipend Support Fund 46 155

Outward Giving - -

Flower Fund - -

Total 416 3,099

Total Interest 533 3,340

8. EXPENSES FOR BOTH GENERAL AND RESTRICTED FUNDS

Note 2010 2009

£ £

Church Expenses Account (General Fund)

Organist’s Fees 700 905

Church Expenses 10 5,472 4,773

Sundry Expenses 11 2,335 2,677

Parish Share 12 27,860 30,838

Repairs and maintenance 13 1,084 208

Donations (other than Outward Giving) 14 3,167 -

Outward Giving - 3,095

Total 40,618 42,496

Outward Giving Fund

Outward Giving donations 15 3,169 -

Total 3,169 -

Fabric Endowment Trust income Account

Roof Repairs - 835

Churchyard - 107

Party wall repairs 888 -

Architect’s fees (party wall repair) 246 -

Floodlighting repairs 60 -

Total 1,194 942

Service Maintenance Trust Income Account

Communion Supplies 66 -

Palm Crosses and Baptism Candles 15 42

Lectionaries 10 -

Total 91 42

Stipend Endowment Trust Income Account

Chaplain’s expenses 1,000 1,000

Total 1,000 1,000

Flower Fund

Flower Fund expenditure 60 301

Total 60 301

Total Payments, Restricted Funds 2,345 2,285

9. NOTES TO BOTH GENERAL AND RESTRICTED FUNDS EXPENSES

Note 10: Church Expenses 2010 2009

£ £

Insurance 1,833 1,833

Envelope System 22 32

Heating and Lighting 1,655 1,704

Cleaning 1,132 1,087

Organ Tuning 116 112

Advent Ring - 5

Chaplain’s expenses 624 -

Purchase of Bibles 90 -

Total 5,472 4,773

Note 11: Sundry Expenses

Printing and Copying 611 778

Fees to Diocese and Deanery 30 -

Hire of Church Halls 99 8

Churchyard 209 359

Miscellaneous 227 885

Defibrillator - 647

Coach trip to Worcester Cathedral 110 -

Purchase of replacement microphone 65 -

Accounting software 341 -

Postage 23 -

Website 53 -

Carpet underlay 270 -

Net fundraising expenditure 297 -

Total 2,335 2,677

Note 12: Parish Share

Share due for Year 29,929 28,769

Current Year Share Paid 29,929 28,769

2009 Overpayment (2,069) 2,069

Total 27,860 30,838

Share outstanding 0 (2,069)

2010 2009

Note 13: Repairs and Maintenance £ £

Boiler Repairs and Servicing 975 106

Fire Extinguisher Servicing 109 102

Total 1,084 208

Note 14: Donations (other than Outward Giving)

Open Day: Donation to the Friends of Little Malvern Priory 1,695 -

Evensong collection: Donation to the Friends of Little Malvern Priory 128 -

Sale of Christmas cakes: Donation to the Friends of Little Malvern Priory 45 -

Donation to the National Gardens Scheme 1,299 -

Total 3,167 -

Note 15: Outward Giving Donations

Donations from General Fund

St Mary’s Sherrard’s Green 2,000 -

Chaplaincy for Agriculture and Rural Life (CARL) - 1,150

Long Lartin Prison Chaplaincy Project - 1,500

Churches Together in Malvern 15 15

Friends of Worcester Cathedral - 30

Deanery Fees - 30

Total 2,015 2,725

Donations from Church Services

Remembrance Sunday: Royal British Legion Earl Haig Fund 249 115

Christmas Midnight Service: Children’s Society 191 140

Christmas Day Services: Church Army 180 115

Total 620 370

Donations arising from Special Services or Organised Events

Open Day: Friends of Little Malvern Priory - 1344

Open Day: National Gardens Scheme - 949

Christmas Party: Malvern Hills Foyer (ex. MHHYAT) 28 26

Lever Memorial Service - 192

Plummer Memorial Service 434 -

Air Ambulance (B Clarke funeral) 72 -

Total 534 2,511

Open Day Expenses payment - 241

Total Outward Giving Donations 3,169 5,847

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