BATH ABBEY PAROCHIAL CHURCH COUNCIL FINANCIAL STATEMENTS 31 DECEMBER 2010

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1 FINANCIAL STATEMENTS 31 DECEMBER 2010 Charity Number

2 FINANCIAL STATEMENTS CONTENTS PAGE Report of the Trustees of the PCC 1 Independent auditor's report to the trustees 8 Statement of financial activities 10 Balance sheet 11 Notes to the financial statements 12 The following pages do not form part of the financial statements Detailed statement of financial activities 25

3 REPORT OF THE TRUSTEES OF THE PCC The trustees present their report and the financial statements of the charity for the year ended 31 December REFERENCE AND ADMINISTRATIVE DETAILS Registered charity name Bath Abbey Parochial Church Council Charity registration number Principal office Abbey Office 12 Kingston Buildings Bath BA1 1LT THE TRUSTEES The following served the charity during the year:- Committee membership The Reverend Prebendary Edward Mason (Rector and chairman) Ex officio member of all committees The Reverend Dr Alan Garrow Visitors The Reverend Dr Adrian Mc Connaughie Mission Links The Reverend Claire Robson Professor A Stennett (Churchwarden) Ex officio member of all committees Mr J Key-Pugh (Churchwarden) Ex officio member of all committees Mr B Cooper Retired April 2010 Mr D Dawson Buildings Dr C Garner Retired April 2010 Mr D Grendon Finance Commander B King Finance Dr J Playfair (Vice-chairman) Mission Links, Personnel Mr I Stratton Mrs A Abbott Mission Links Mrs F Beney Visitors Mr D Smith Retired April 2010 Mrs U Turrell Retired April 2010 Visitors Major R Dunn Finance Mrs N Hanscombe Dr B Schlenther Personnel Mr A Bragg Buildings Mr S Chamberlain Buildings Mrs C Mercer Personnel Ms J Pleace Mission Links Mr L Maycock Buildings Mr P Clark (Treasurer) Standing, Finance Mrs R Coe Appointed April 2010 Buildings Mr M Hudson Appointed April 2010 Mrs E Westbrook Appointed April 2010 Mission Links Mr R Wong Appointed April 2010 Mrs C Bragg (Electoral roll officer) Secretary Auditor Judge A Rutherford Moore Stephens Chartered Accountants & Statutory Auditor 30 Gay Street Bath BA1 2PA - 1 -

4 REPORT OF THE TRUSTEES OF THE PCC (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT Preamble In line with the requirements of Church Accounting Regulations (2006) together with accounting standards and the Charities SORP applicable to Parochial Church Councils within the Church of England, the financial activities of the Bath Abbey PCC are presented in this document. The financial statements include income and expenses relating to the Abbey, the Heritage Vaults and the shop, and rental from lettings of the Abbey and other properties. Constitution of the Council The Parochial Church Council is a corporate body established by the Church of England. The PCC operates under the Parochial Church Council Powers Measure. The PCC is registered with the Charity Commission with effect from 4th February Role of the Council The PCC has considered the Charity Commission's guidance on public benefit and the advancement of religion. The PCC co-operates with the Rector in promoting in the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical. The PCC sees the Abbey's mission as witnessing steadfastly to the Christian faith and proclaiming the gospel through prayer and preaching; through service to the community of Bath and to visitors to the city; through service to those in need beyond the City of Bath; and through careful stewardship of the Abbey's heritage of excellence in its worship and in its fabric. The Abbey also contributes to the spiritual and musical education of young people in the local area by inviting them to take part in the Easter Experience in the Abbey and through the Schools Singing Programme. Appointment, induction and training of trustees of the Council The trustees of the PCC are elected in accordance with the Church representation rules. Occasionally trustees may be co-opted for a period of one year. Members of the clergy and churchwardens are ex-officio trustees of the PCC. Help and familiarisation is available through discussions with the Rector and Churchwardens, and the Treasurer provides training in understanding PCC accounts where necessary. Trustees of the PCC are usually involved in two 'Away Days' each year when Parish Strategy is discussed. Organisation of the Council In order to discharge its duties the PCC appoints a number of committees which meet on a regular basis. It also employs staff to carry out various functions. The PCC generally meets monthly except during August and December. The current PCC committees are: Standing, Finance, Buildings, Visitors, Mission Links and Personnel. The PCC takes this opportunity to thank the employees of the Abbey for the fine manner in which they perform their duties throughout the year in support of the Abbey's aim to witness to the Christian faith and always to provide a warm and welcoming environment at the Abbey

5 REPORT OF THE TRUSTEES OF THE PCC (continued) Related Parties There are six associated charities, namely: Bath Abbey Trust (reg. no ) whose objects include the support of major refurbishments of the fabric of the Abbey; Bath Abbey Charities (reg. no ) whose object is the relief of hardship and distress to residents of Bath, both individually and generally; St. James Memorial Hall Trust (reg. no ) whose object is the furtherance of the religious and other charitable work of the Church of England in the Parish of Bath Abbey with St. James; Charity for the Upkeep and Maintenance of the Abbey Cemetery (reg. no ), which is responsible for the maintenance of Bath Abbey Cemetery; Friends of Bath Abbey (reg. no ) whose object is to assist the PCC to care for, adorn and preserve for posterity the fabric of the Abbey building and its goods and ornaments. Bath Abbey Music Society (reg. no ) whose object is to promote music in Bath Abbey by providing financial support for the choirs and other musical activities and equipment. Their activities are not included in these financial statements. Risk Management The PCC has considered and assessed the major risks to which they may be exposed and are satisfied that measures are in place to deal with the major risks should they occur. There is ongoing communication with the Abbey's insurance brokers on this subject. Risk reviews have been undertaken where appropriate, in particular before new enterprises start or where activities are considered to involve any type of risk. A disaster plan has been put in place and rehearsed to deal with major incidents. OBJECTIVES AND ACTIVITIES Activities of the Council During 2010 the PCC undertook a mid-term review of the vision statement "Where Earth and Heaven Meet" to assess what progress has been made towards achieving our targets. It was agreed that progress was good in some areas, with certain of our aims now completed, but more work required in others. Tangible progress was made in the Abbey Development Project with the appointment of Fielden Clegg Bradley as architects early in the year, followed by a day spent with them in the Autumn giving members of the PCC opportunities to consider their initial findings and discuss practical options for implementing our objectives. Further to the debate commenced in 2009 the PCC came to the conclusion that children should be admitted to Holy Communion before Confirmation, in accordance with the regulations made by General Synod. This was put into practice at Eucharist services in the Abbey later in The Bath Abbey Schools Singing Programme got underway in 2010 following the appointment of Shean Bowers as Choral Director for Schools and Assistant Director of Music. The programme has been well received by local schools and they will be staging concerts in the Abbey during Later in 2010 the decision was taken to close the Heritage Vaults in anticipation of different uses for that space as the Development Project progresses. The PCC plan to make interpretation of Abbey life past, present and future, a more integral part of the Abbey in future and more accessible to our visitors. In addition to the above, the PCC received regular reports from its committees and from the appointed person for child protection. It carried out its duty of caring for the fabric of the Abbey, maintained a close watch on the Abbey's finances and oversaw the preparation of the budget for

6 REPORT OF THE TRUSTEES OF THE PCC (continued) Volunteers Volunteers play a vital role in the life of the Abbey. During the week and on Sundays, volunteers welcome visitors and congregations, serve in the shop, arrange flowers, assist with services, work with children and young people and ring the Abbey's bells. The Assistant Treasurer and a team of volunteers count, record and oversee the banking of the Abbey's income streams. The Planned Giving Recorder supervises the Abbey's Planned Giving Scheme and records the incoming donations from the participants. More than 250 people are involved as volunteers in the life of the Abbey. The PCC thanks all these individuals for their valuable work which is carried out in the very best tradition of 'volunteering' at the Abbey. ACHIEVEMENTS AND PERFORMANCE Electoral Roll and average weekly attendance The number of persons on the electoral roll as at 31 December 2010 was 660, compared with 656 at the end of the previous year. The average weekly attendance at services, including visitors, during the year was 520 ( ). Income from visitors The number of visitors to the Abbey other than for services was estimated to be approximately 335,000 during the year. The Abbey shop has continued to perform well, achieving a sales increase of 19% in 2010 compared with Tower Tour income increased by 47% compared to the previous year. Prior year adjustment The accounts of Bath Abbey PCC have in previous years included the income, expenditure and fund balances of a registered charity called Charity for the Upkeep and Maintenance of the Abbey Cemetery (The Cemetery). During the year the trustees concluded that as the trustees of Bath Abbey PCC do not control the operation of The Cemetery, which operates independently with its own Trustee Board, the results and funds of The Cemetery should not be included in the accounts of Bath Abbey PCC. Accordingly, the funds of The Cemetery have been removed from these accounts as a prior year adjustment. The impact on the 2009 results has been a reduction in restricted income of 2,697, a reduction in restricted expenditure of 12,540 and an increase in gains on investment assets of 1,745. The amount of the Endowment and Restricted funds removed has been disclosed in Notes 17 and 18 respectively

7 REPORT OF THE TRUSTEES OF THE PCC (continued) FINANCIAL REVIEW The following were highlights of financial activities during the year: Total incoming resources amounted to 1,503,461, an increase of 131,131 on The Abbey Shop and Tower Tours income have both increased significantly this year with voluntary and investment income remaining similar to last year. Total resources expended amounted to 1,519,185, a increase of 207,580 on Fundraising Trading costs have risen due to the increased activity of the Abbey Shop and Tower Tours and Costs of Charitable Activities have increased, mainly because of the commencement of the development project. There was a deficit of incoming resources of 15,724 (2009 surplus 60,725). This included a deficit of 5,507 (which is after a transfer of 50,000 to the fabric and general purposes fund) on unrestricted funds, a deficit of 64,190 (which includes expenditure of 134,472 from the Abbey Church House and development fund) on designated funds and a surplus of 53,973 on restricted funds. The only movement on the Endowment Fund was the increase of 9,020 in the value of the Abbey's investments. Planned Giving from within the parish was 207,046, being a similar level to When other collections and donations are included, income from donors increased by 6.5% on 2009 to 432,612. Included in donations is an amount of 93,523 received from Friends of Bath Abbey towards the fabric costs of the Abbey, including the funding of the major electrical work, and a gift from the Bath Abbey Music Society of 3,000 towards music costs. We are most grateful for these donations. We were very grateful to receive legacies amounting to 9,560. Donations from visitors continued to increase and rose by 5.7% on 2009 to 503,520. As mentioned earlier, sales in the Abbey Shop increased to 327,493, being a 19% increase on Income from enterprise activities in total amounted to 1,038,105, an increase on 2009 of 131,155, being 14.4%. Our payment to the Diocesan Common Fund amounted to 182,912, a increase of 10.6% on last year. We made donations of 68,913 in support of our Mission Links and in addition raised and distributed a further 20,232 from special collections during the year. A schedule of donations is available for review in the Abbey office. Expenditure at the commencement of the development project amounted to 134,472. General fabric maintenance decreased from 53,734 to 42,435. Administration and management expenses in support of the Abbey's activities totalled 166,380, being a decrease of 3.6% on After unrealised gains on investments amounting to 9,020 ( ,704) there was an overall decrease in funds of 6,704 ( 71,429 increase in 2009) bringing the balances carried forward on all funds at the end of the year to 1,901,038 compared with 1,907,742 at the end of The Abbey's cash position at the bank remained strong throughout the year and we were able to meet all our obligations and The Abbey's balance sheet is considered to be very healthy. At the end of the year the Fabric and general purposes designated fund stood at 302,977 and the Abbey Church House building and development designated fund stood at 924,477. Throughout the rest of the financial statements reference to unrestricted funds includes designated funds

8 REPORT OF THE TRUSTEES OF THE PCC (continued) Fixed Assets The change in fixed assets during the year includes expenditure of 113,149 on staging and stage lighting. These assets were funded by donations. The current value of the Abbey's freehold properties is believed to be considerably in excess of the book value of 183,783; the PCC does not consider that a revaluation is necessary at present but is keeping the situation under regular review. Investment policy Investments relating to endowment funds are managed to provide a mixture of capital growth and income by investing mainly in units of the Church of England Central Board of Finance Investment Fund; the overall value increased from 125,399 to 134,419 during the year. which are expected to be needed within the next five years, particularly the designated funds, are invested in high interest bearing bank deposits and the Church of England Central Board of Finance Deposit Fund. Reserves policy It is the policy of the PCC to build up and then maintain prudent reserves (the Fabric and General Purposes Fund) to allow for significant and unforeseen fluctuations in visitor income and to cover major repairs to the fabric of the Abbey which cannot be met out of normal operating revenues or special grants. An overall amount of about six months' costs (approximately 500,000) is considered appropriate. The balance at the year end on the Fabric and General Purposes Fund amounted to 302,977. PLANS FOR FUTURE PERIODS The Abbey's general recurring income is very dependant (approximately 35%) on donations received from visitors; a point to keep in mind in these difficult times as it represents a potential risk. The Abbey's planned giving scheme contributes approximately 15%. The balance comes from general collections taken up at services during the year and from various Abbey enterprises such as the shop, tower tours and surpluses from letting the Abbey for concerts and other approved events. In formulating the budget for 2011, the PCC has made prudent forecasts based on realistic assumptions and we aim to return a small operating surplus for the year. We will closely monitor our income and expenditure throughout the year. We will be faithful, confident, careful - and generous in our support of Mission Links, continuing the tradition of the Abbey. We will continue to drive forward the implementation of our vision statement "Where Earth and Heaven Meet" paying particular attention to those areas identified as requiring more work. Following the initial period of research and consultation by the architects, Fielden Clegg Bradley, work commenced early in 2011 digging several test pits in and around the Abbey to gather vital information about what lies beneath the floor. This information will inform our decisions and help us to prioritise different aspects of the development project. We also plan to complete a major overhaul of the Abbey website during 2011, recognising that this is becoming an increasingly important tool for communication with members of the Abbey community, visitors and the people of Bath and beyond. RESPONSIBILITIES OF THE TRUSTEES The charity's trustees are responsible for preparing the Report of the Trustees of the PCC and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)

9 REPORT OF THE TRUSTEES OF THE PCC (continued) The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 1993 and the Charity (Accounts and Reports) Regulations The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR A resolution to re-appoint Moore Stephens as auditor for the ensuing year will be proposed at the Annual Parochial Church Meeting. 7 April 2011 Signed on behalf of the trustees The Reverend Prebendary E Mason Chairman and Rector - 7 -

10 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BATH ABBEY PAROCHIAL CHURCH COUNCIL We have audited the financial statements of Bath Abbey Parochial Church Council for the year ended 31 December 2010 which comprise the Statement of Financial Activities, the Balance Sheet and related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charity s members, as a body, in accordance with section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. Our audit work has been undertaken so that we might state to the charity s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity s members as a body, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR As explained more fully in the Trustees Responsibilities Statement, the trustees are responsible for the preparation of the financial statements which give a true and fair view. We have been appointed as auditor under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements

11 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BATH ABBEY PAROCHIAL CHURCH COUNCIL (continued) OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: give a true and fair view of the state of the charity s affairs as at 31 December 2010 and of its incoming resources and application of resources for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Charities Act 1993 requires us to report to you if, in our opinion: the information given in the Trustees Annual Report is inconsistent in any material respect with the financial statements; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. MOORE STEPHENS 30 Gay Street Chartered Accountants Bath & Statutory Auditor BA1 2PA 7 April

12 STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted Endowment Note INCOMING RESOURCES Incoming resources from generating funds: Voluntary income 2 279, , , ,209 Activities for generating funds 3 1,038,105 1,038, ,950 Investment income 4 23,184 23,184 24, TOTAL INCOMING RESOURCES 1,341, ,236 1,503,461 1,372, RESOURCES EXPENDED Costs of generating funds: Fundraising trading: cost of goods sold and other costs 5 (448,152) (2,922) (451,074) (361,645) Charitable activities 6/7 (958,270) (105,341) (1,063,611) (946,460) Governance costs 8 (4,500) (4,500) (3,500) TOTAL RESOURCES EXPENDED (1,410,922) (108,263) (1,519,185) (1,311,605) NET (OUTGOING)/ INCOMING RESOURCES BEFORE OTHER RECOGNISED GAINS AND LOSSES 9 (69,697) 53,973 (15,724) 60,725 OTHER RECOGNISED GAINS AND LOSSES Gains on investment assets 9,020 9,020 10, NET MOVEMENT IN FUNDS (69,697) 53,973 9,020 (6,704) 71, RECONCILIATION OF FUNDS Total funds brought forward as previously reported 1,634, , ,364 1,968,257 1,836,313 Prior year adjustment 10 (10,975) (49,540) (60,515) Total funds brought forward restated 1,634, , ,824 1,907,742 1,836, TOTAL FUNDS CARRIED FORWARD 1,564, , ,844 1,901,038 1,907,742 = = = = = The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities. The notes on pages 12 to 23 form part of these financial statements

13 BALANCE SHEET 31 DECEMBER Note FIXED ASSETS Tangible assets , ,412 Investments , , , ,811 CURRENT ASSETS Stocks 14 52,201 53,371 Debtors , ,643 Cash at bank and in hand 1,320,424 1,360, ,481,418 1,533,193 CREDITORS: Amounts falling due within one year 16 (122,794) (109,262) NET CURRENT ASSETS 1,358,624 1,423,931 = = TOTAL ASSETS LESS CURRENT LIABILITIES 1,901,038 1,907, NET ASSETS 1,901,038 1,907,742 FUNDS Endowment funds , ,824 Restricted income funds , ,416 Unrestricted income funds 19 1,564,805 1,634, TOTAL FUNDS 1,901,038 1,907,742 These financial statements were approved by the trustees and signed on their behalf on 7 April 2011 by The Reverend Prebendary E Mason Chairman and Rector Mr P Clark Treasurer The notes on pages 12 to 23 form part of these financial statements

14 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES Basis of accounting The financial statements have been prepared under the historical cost convention, except for investments which are included at market value and the revaluation of certain fixed assets, and in accordance with applicable United Kingdom accounting standards, the Statement of Recommended Practice "Accounting and Reporting by Charities" issued in March 2005 (SORP 2005) and the Charities Act Donations Planned giving is recognised only when received. Collections are recognised when received by or on behalf of the PCC. Grants and legacies are accounted for as soon as the PCC is notified of it's legal entitlement, the amount can be quantified and it is reasonably certain that the amount will be received. Income tax recoverable on gift aid donations is recognised when the donation is received. Incoming resources from other activities Sales of books and other items sold in the shop are recognised at point of sale. Fees arising from the use of the Abbey and its other properties are recognised when the fee is due. Investment assets and income Investments are valued at market value. Dividends and interest are accounted for when receivable. Realised and unrealised gains Realised gains and losses are recognised when investments are sold and unrealised gains and losses are accounted for on revaluation at the year end. Fund Accounting The accounts include all transactions, assets and liabilities for which the PCC is responsible in law. General funds represent the funds of the PCC that are not subject to any restrictions regarding their use and are available for application to the general purposes of the PCC. designated for a particular purpose by the PCC are also unrestricted. Restricted funds are those monies given to the PCC for specific purposes and can only be applied in respect of those purposes. Endowment funds represent capital donations to the PCC and only the income arising from the funds may be applied, the capital remaining intact

15 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES (continued) Resources Expended Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding obligation on the PCC. The diocesan parish share is accounted for when payable. Fixed Assets All fixed assets costing 1,000 or more are capitalised and are initially recorded at cost. Depreciation Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Stocks Freehold property - 50 years Other assets - 3 to 10 years Glockenspiel - 20 years Pianos - 50 years Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. 2. VOLUNTARY INCOME Unrestricted Restricted Donations Planned giving 207, , ,235 Collections 55,459 40,327 95,786 75,021 Donations - general 5,096 21,651 26,747 18,100 Donations - music 6,303 6,303 8,271 Donations - flowers Donations - fabric repairs and works 2,775 2,775 19,250 Donations - Friends of Bath Abbey 93,523 93,523 73,118 Legacies Legacies 9,560 9,560 35, , , , ,209 = = = =

16 NOTES TO THE FINANCIAL STATEMENTS 3. INCOMING RESOURCES FROM ACTIVITIES FOR GENERATING FUNDS Unrestricted Visitors to the Abbey 503, , ,399 Shop sales 327, , ,974 Tower tours 88,852 88,852 67,060 Abbey hire and other fees 112, ,476 88,517 Singing for Schools 2,669 2,669 Melody Makers Property Rental 2,600 2, ,038,105 1,038, ,950 = = = 4. INVESTMENT INCOME Unrestricted Other interest receivable 23,184 23,184 24,171 = = = 5. FUNDRAISING TRADING: COST OF GOODS SOLD AND OTHER COSTS Unrestricted Restricted Visitors to the Abbey 67,813 67,813 59,740 Shop 272, , ,110 Tower tours 51,056 51,056 50,032 Abbey hire and other fees 36,186 2,922 39,108 26,763 Singing for Schools 19,814 19,814 Melody Makers ,152 2, , ,645 = = = =

17 NOTES TO THE FINANCIAL STATEMENTS 6. COSTS OF CHARITABLE ACTIVITIES BY FUND TYPE Unrestricted Restricted Parish Share 182, , ,372 Mission Links 46,393 50,079 96,472 77,311 Operating costs 165, , ,710 Music costs 112,209 7, , ,387 Work of Ministry 93,724 1,384 95,108 69,815 Major work to the Abbey 84,221 Fabric maintenance 39,263 3,172 42,435 53,734 Depreciation 17,365 43,451 60,816 46,272 Development project 134, ,472 Support costs 166, , , , ,341 1,063, ,460 = = = = 7. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE Charitable Giving Work of the Abbey Support costs Parish Share 182, , ,372 Mission Links 68,913 27,559 96,472 77,311 Operating costs 165, , , ,348 Music costs 119, , ,387 Work of Ministry 95,108 95,108 69,815 Major work to the Abbey 84,221 Fabric maintenance 42,435 42,435 53,734 Depreciation 60,816 60,816 46,272 Development project 134, , , , ,380 1,063, ,460 = = = = = A detailed analysis of the grants making up the Mission Links expenditure of 96,472 is provided in note 22 to the accounts. 8. GOVERNANCE COSTS Unrestricted Audit fees 4,500 4,500 3,500 = = = 9. NET (OUTGOING)/INCOMING RESOURCES FOR THE YEAR = = This is stated after charging: Staff pension contributions 8,931 7,715 Depreciation 68,640 56,553 Auditors' remuneration: - audit of the financial statements 4,500 3,

18 NOTES TO THE FINANCIAL STATEMENTS 10. PRIOR YEAR ADJUSTMENT The accounts of Bath Abbey PCC have in previous years included the income, expenditure and fund balances of a registered charity called Charity for the Upkeep and Maintenance of the Abbey Cemetery (The Cemetery). During the year the trustees concluded that as the trustees of Bath Abbey PCC do not control the operation of The Cemetery, which operates independently with its own Trustee Board, the results and funds of The Cemetery should not be included in the accounts of Bath Abbey PCC. Accordingly, the funds of The Cemetery have been removed from these accounts as a prior year adjustment. The impact on the 2009 results has been a reduction in restricted income of 2,697, a reduction in restricted expenditure of 12,540 and an increase in gains on investment assets of 1,745. The amount of the Endowment and Restricted funds removed has been disclosed in Notes 17 and 18 respectively. 11. STAFF COSTS AND EMOLUMENTS = = Total staff costs were as follows: Wages and salaries 396, ,862 Social security costs 27,992 25,784 Other pension costs 8,931 7, , ,361 = = Particulars of employees: The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows: No No Enterprise activities - Shop and Heritage Vaults 4 3 Enterprise activities - Visitors Officer 1 1 Vergers 3 4 Office and administration 4 4 Music 1 1 Youth and childrens' co-ordinator 1 1 Mission Links 1 1 Tower Tours There are hourly paid employees whose working hours are so varied that an average full time equivalent calculation would not be appropriate or useful. The number of such employees as at each year end who are not included in the above table are 64 choir members ( ), 20 Tower Tour guides ( ) and 12 stage crew. No employee received remuneration of more than 60,000 during the year ( Nil). No remuneration or reimbursement of expenses ( nil) has been made to the Members of the PCC, other than the payment of a salary to one Member who was an employee during the year

19 NOTES TO THE FINANCIAL STATEMENTS 12. TANGIBLE FIXED ASSETS Freehold property Piano Equipment Fixtures & Fittings Sound, Screens & Staging Total COST At 1 Jan ,250 68, ,647 69, , ,226 Additions 1,945 3, , , At 31 Dec ,250 70, ,095 69, , ,768 = = = = = = DEPRECIATION At 1 Jan ,567 6,530 93,924 41, , ,133 Charge for the year 2,900 1,462 8,211 6,983 49,084 68, At 31 Dec ,467 7, ,135 48, , ,773 = = = = = = NET BOOK VALUE At 31 Dec ,783 62,472 33,960 21, , ,995 = = = = = = At 31 Dec ,683 61,989 38,723 28,139 42, ,093 = = = = = = 13. INVESTMENTS Movement in market value Market value at 1 Jan , ,440 Net gains on revaluations in the year ended 31 December ,020 8, Market value at 31 Dec , ,399 = = Analysis of investments at 31 Dec 2010 between funds Unrestricted Restricted Endowment Listed investments UK Quoted Shares , , , STOCKS , , ,399 = = = = = = = Stock 52,201 53,

20 NOTES TO THE FINANCIAL STATEMENTS 15. DEBTORS = = Trade debtors 33,862 20,534 Income tax recoverable 30,384 34,008 Other debtors 19,630 39,363 Prepayments 24,917 25, , , CREDITORS: Amounts falling due within one year = = Bank loans and overdrafts 6,099 Trade creditors 80,846 76,579 Taxation and social security 15,627 15,567 Wages control account 8,042 6,584 Accruals 12,180 10, , , ENDOWMENT FUNDS Permanent endowments Restated balance Incoming Balance at at 1 Jan 2010 resources 31 Dec 2010 General 48,160 4,089 52,249 Music 77,664 4,931 82,595 Diptychs 10,000 10, ,824 9, ,844 = = = As explained in note 10, the funds of the Charity for the Upkeep and Maintenance of the Abbey Cemetery (the Cemetery) have been removed, as a prior year adjustment, from these accounts. The Cemetery balance in endowments as at 31 December 2009 was 49,

21 NOTES TO THE FINANCIAL STATEMENTS 18. RESTRICTED INCOME FUNDS Restated balance at 1 Jan 2010 Incoming resources Outgoing resources Transfers Balance at 31 Dec 2010 Piano fund 58,434 (1,423) 57,011 Abbey Sound system 1,939 (1,939) Abbey Screen system 16,000 (16,000) Additional mixer for sound system 574 (574) Special collections 2,540 40,327 (40,363) (2,504) General 2,771 2,564 (4,558) 777 Music fund 3,114 6,303 (7,255) (1,694) 468 Fabric projects capital fund 32,950 93,523 (21,790) 104,683 Homeless initiative 2,497 16,519 (9,715) 2,504 11,805 Fabric projects legacy fund 5,000 5,000 Staging fund 11,597 3,000 (4,081) 10,516 Music capital fund (565) 1,694 1, , ,236 (108,263) 191,389 = = = = = The Piano fund, Abbey Sound system, Abbey Screen system, Additional mixer for sound system, the Fabric projects capital fund and the Music capital fund are all monies received towards the cost of purchasing specific capital assets. The Special collections and General funds consist of smaller restricted donations. The Music fund is monies received specifically towards funding the costs of the Music department. The Homeless Initiative is a project to assist the homeless in Bath. The Fabric projects legacy fund is a legacy specifically received towards Abbey maintenance projects. The Staging fund is monies received towards the costs of new staging. As explained in note 10, the funds of the Charity for the Upkeep and Maintenance of the Abbey Cemetery (the Cemetery) have been removed, as a prior year adjustment, from these accounts. The Cemetery balance in restricted funds as at 31 December 2009 was 10,

22 NOTES TO THE FINANCIAL STATEMENTS 19. UNRESTRICTED INCOME FUNDS Balance at 1 Jan 2010 Incoming resources Outgoing resources Transfers Balance at 31 Dec 2010 Fabric and general purposes fund 250,202 2,775 50, ,977 Abbey Church House building and development fund 1,035,657 23,292 (134,472) 924,477 Schools Singing Programme 30,000 2,669 (18,014) 14,655 Legacies fund 9,560 9,560 General 318,643 1,302,929 (1,258,436) (50,000) 313, ,634,502 1,341,225 (1,410,922) 1,564,805 = = = = = The Fabric and general purposes fund is monies set aside specifically for such expenditure. The Abbey Church House fund contains the money received from the sale of the Abbey Church house and these funds are now being used towards the cost of the new Development project. The schools singing fund is monies set aside to fund this project. The legacies fund has been set up for legacy income where the trustees wish to specifically identify subsequent expenditure. 20. ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible fixed assets Investments Net current assets Total Restricted Income : Piano fund 57,011 57,011 General Music fund Fabric projects capital fund 104, ,683 Homeless initiative 11,805 11,805 Fabric projects legacy fund 5,000 5,000 Staging fund 10,516 10,516 Music capital fund 1,129 1, ,823 28, , Endowment : General 10, , ,844 Unrestricted Income : Designated 1,251,669 1,251,669 General 235,172 77, , ,172 1,329,633 1,564, , ,419 1,358,624 1,901,038 = = = =

23 NOTES TO THE FINANCIAL STATEMENTS 21. RELATED PARTY TRANSACTIONS During the year the PCC received monies from the following: Friends of Bath Abbey 93,523 ( ,118) Bath Abbey Music Society 3,000 (2009-5,000) Mr A Desmond, a member of the senior management team, is a trustee of Bath Abbey Music Society. Mr P King, a member of the senior management team, is a committee member of Bath Abbey Music Society and Friends of Bath Abbey. Mr J R Key-Pugh, a charity trustee, and his wife are a member of the executive committee and secretary respectively of Friends of Bath Abbey. Close family members of two trustees, Mr A Bragg and Mr S Chamberlain, are employed by the charity on terms no different from other employees. At the year end the charity had advanced an interest free loan of 10,000 to the Diocese of Bath & Wells to assist with cost of necessary maintenance work on the parsonage house occupied by the Vicar Pastor. The loan is being repaid in 12 equal monthly instalments during

24 NOTES TO THE FINANCIAL STATEMENTS 22. MISSION LINKS PAYMENTS Mission Links payments summary 2010 Work of the Abbey through the Abbey s Homelessness Initiative 16,308 through a stall at the Christmas Market Support for Palestinian Christians 3, through subsidies of concerts and services Support for local charitable organisations 4,418 through distributing free copies of Jesus Books Support for the mission of the church 2,050 through raising money for charitable giving Cost of making the Harvest Appeal 519 Sundry extra (small) expenses 864 Charitable giving Total Work of the Abbey 27,559 Individuals Mission Links Partners abroad Grants to enable mission work abroad 1,050 Institutions Supporting Bath & District Deposit Bond Scheme 1,500 homelessness relief Bath & Wells Zambia link 6,676 Anglicans in our linked dioceses Bath Women s Refuge 1,000 victims of domestic violence Bath Youth for Christ 1,000 mission work with young people Childrens Hospice South West 1,000 terminally ill children Church Mission Society 4,100 Christian mission abroad Clean Slate 27,512 people with employment needs Dorothy House 2,000 terminally ill adults Focus Christian Counselling 2,000 people in need of counselling Genesis Trust/Street Pastors 2,000 outreach work in Bath Off The Record 1,000 children needing care Rebuilding Sri Lanka 2,600 our mission partners work Scripture Union 1,000 religious publishing St Mark s School 1,000 the C of E secondary school St Michael s Church 1,000 the mission of our sister church Tear Fund 2,000 Christian Relief work USPG 2,000 Christian mission abroad Wycliffe Bible Translators 2,300 Christian mission abroad Royal British legion 1,039 a welfare organisation 12 further grants of less than 1,000 5,136. to similar organisations 67,863 Total Charitable giving 68,913 Total Mission Links 96,

25 NOTES TO THE FINANCIAL STATEMENTS 22. MISSION LINKS PAYMENTS cont. Mission Links payments summary 2009 Work of the Abbey through the Abbey s Homelessness initiative 15,664 through a stall at the Christmas Market Support for Palestinian Christians 2, through subsidies of concerts and services Support for local charitable organisations 4,220 through distributing free copies of Jesus Books Support for the mission of the church 1,250 through raising money for charitable giving Cost of making the Harvest Appeal 90 Sundry extra (small) expenses 2,084 Charitable giving Total Work of the Abbey 25,321 Individuals Mission Links Partners abroad Grants to enable mission work abroad 4,490 Institutions Supporting Bath & District Deposit Bond Scheme 1,500 homelessness relief Bath & Wells Zambia link 13,148 Anglicans in our linked dioceses Bath Women s Refuge 1,000 victims of domestic violence Bath Youth for Christ 1,000 mission work with young people Childrens Hospice South West 1,000 terminally ill children Church Mission Society 4,000 Christian mission abroad Dorothy House 2,000 terminally ill adults Drugs & Homeless Initiative 1,000 socially excluded people Genesis Trust/Street Pastors 2,000 outreach work in Bath Off The Record 1,000 children needing care Reaching The Unreached 3,623 our mission partners work Scripture Union 1,000 religious publishing South American Mission Soc. 2,000 Christian mission abroad St Mark s School 1,000 the C of E secondary school St Michael s Church 1,000 the mission of our sister church Tear Fund 2,000 Christian Relief work USPG 2,000 Christian mission abroad Wycliffe Bible Translators 2,600 Christian mission abroad Royal British Legion 1,129 a welfare organisation 12 further grants of less than 1,000 3,500. to similar organisations 47,500 Total Charitable giving 51,990 Total Mission Links 77,