	Introduction to the 2006 Accounts
	By the time that you read this you should be able to pick up a copy of the final approved accounts and annual report for 2006 in preparation for the Annual Parish Church Meeting, the new title for the annual general meeting of the church, which will be held on Sunday 22nd April. This year sees the introduction of new government regulations relating to the format and content of the report and accounts. My purpose in writing this is to guide you through the new format. The complete report is in three parts, the annual report, the annual accounts and the Independent Examiner’s report. Annual Report The first three sections give standard information about the church and its organisation. These are followed by descriptions of the achievements of the last year and the developments planned for the coming year. It concludes with a financial review which comments on the financial position of the church. Annual Accounts These are split into three main sections. The Statement of Financial Activities gives a summary of the accounts for the year, showing the main sources of income and the main areas of expenditure. The report headings used are laid down in the regulations so that all charities can be compared on a similar basis. The Balance Sheet shows how the church’s assets are placed at the year end and the Funds of the charity shows the division of these assets between the different funds. Each of these sections has a bottom line which should show the same totals. It is always a huge relief to the treasurer in preparing these reports when all three show the same figures in the bottom line! If you look at these three sections you will almost certainly wish that there was more detail. This is the purpose of the fourteen notes that follow. Notes to the Accounts Note 1 covers the basis of preparation for the accounts and note 2 covers the accounting policies. Many of these are standard requirements of the regulations and represent the norm so that all charity accounts can be compared on the same basis. The notes specific to Norbury are given at the end of note 2. Note 3 gives a much more detailed analysis of income using headings that should be more familiar to you and note 4 performs the same function for expenditure. One of the recommendations of the new regulations is that the accounts for larger churches should be broken down into activities and that these should be described both in terms of achievements and money spent. For Norbury we have chosen the following activity headings: Grants These are gifts made to other charities from church funds. It is a mandatory heading. The grants are set out in detail in note 8 with the name of the charity and a very brief description of the purpose. Ministry These are the costs including wages and expenses of the ministry team: vicar, associate vicar, curate (up to May 2006) and the readers and visiting speakers. Worship These are the costs associated with running all the services, including provision of flowers, music, sound, visual aids, other resources and fellowship expenses (tea and coffee!) during or after these services. Also included are any special church events, and training and education for members not covered under Ministry above.	Children’s and youth work These are the costs of employing the children’s and youth workers together with the supporting expenses such as teaching resources, training of staff and helpers, youth events and holiday club. Church premises This section covers all the expenses involved in maintaining the church buildings, both the church and the narthex extensions. About a third of these costs are covered by contributions from those who use our buildings. Curate’s house This covers the maintenance and repair costs of the curate’s house at 27 Davenport Road. From September 2006 these were offset by a monthly payment of rent from St Mark’s, Bredbury which is shown separately under income (note 3). Churchyard This covers the wages and expenses of maintaining our churchyard. These are partly met by our annual churchyard appeal and partly by funeral fees. Public communications This is mainly the costs of producing the magazine with the small additional costs of the Chester Diocesan News, notice board, public notices and the web site. Subscriptions and advertisements in the magazine cover the full cost of printing the magazine but not its preparation and distribution. Governance This is a new mandatory heading required by the regulations. It covers the costs of the Electoral Roll, Annual Parish Church Meeting, producing the annual report and accounts and the expenses of running the PCC together with any professional fees associated with advice given to the PCC (such as given by accountants, auditors or solicitors). Allocation of wages and expenses One of the new requirements of the regulations is that the costs of staff should be allocated to the activities in proportion to their amount of involvement. As a result you will see admin and verger wages and expenses occurring under most of the headings above. Note 14 gives details of how these costs are allocated. The other notes are fairly straightforward and similar in format to previous annual accounts so I will not go into any further detail. Independent Examiner’s Report This is the report to the PCC which is issued by the Independent Examiner (Mrs Victoria Fryman) when she has completed her examination of the accounts. It is very similar to the reports given with previous accounts and shows the scope of the examination and details any problems found. Conclusion If you are still reading this you are doing well! I hope that this summary will help you to understand the accounts, but remember you can always ask me for further explanations. David Scott
	Norbury Parish Church, Hazel Grove, Stockport, Cheshire. Telephone: 0161-483 6325

Introduction to the 2006 Accounts

By the time that you read this you should be able to pick up a copy of the final approved accounts and annual report for 2006 in preparation for the Annual Parish Church Meeting, the new title for the annual general meeting of the church, which will be held on Sunday 22nd April.

This year sees the introduction of new government regulations relating to the format and content of the report and accounts. My purpose in writing this is to guide you through the new format. The complete report is in three parts, the annual report, the annual accounts and the Independent Examiner’s report.

Annual Report

The first three sections give standard information about the church and its organisation. These are followed by descriptions of the achievements of the last year and the developments planned for the coming year. It concludes with a financial review which comments on the financial position of the church.

Annual Accounts

These are split into three main sections.

The Statement of Financial Activities gives a summary of the accounts for the year, showing the main sources of income and the main areas of expenditure. The report headings used are laid down in the regulations so that all charities can be compared on a similar basis.

The Balance Sheet shows how the church’s assets are placed at the year end and the Funds of the charity shows the division of these assets between the different funds.

Each of these sections has a bottom line which should show the same totals. It is always a huge relief to the treasurer in preparing these reports when all three show the same figures in the bottom line!

If you look at these three sections you will almost certainly wish that there was more detail. This is the purpose of the fourteen notes that follow.

Notes to the Accounts

Note 1 covers the basis of preparation for the accounts and note 2 covers the accounting policies. Many of these are standard requirements of the regulations and represent the norm so that all charity accounts can be compared on the same basis. The notes specific to Norbury are given at the end of note 2. Note 3 gives a much more detailed analysis of income using headings that should be more familiar to you and note 4 performs the same function for expenditure. One of the recommendations of the new regulations is that the accounts for larger churches should be broken down into activities and that these should be described both in terms of achievements and money spent. For Norbury we have chosen the following activity headings:

Grants

These are gifts made to other charities from church funds. It is a mandatory heading. The grants are set out in detail in note 8 with the name of the charity and a very brief description of the purpose.

Ministry

These are the costs including wages and expenses of the ministry team: vicar, associate vicar, curate (up to May 2006) and the readers and visiting speakers.

Worship

These are the costs associated with running all the services, including provision of flowers, music, sound, visual aids, other resources and fellowship expenses (tea and coffee!) during or after these services. Also included are any special church events, and training and education for members not covered under Ministry above.

Children’s and youth work

These are the costs of employing the children’s and youth workers together with the supporting expenses such as teaching resources, training of staff and helpers, youth events and holiday club.

Church premises

This section covers all the expenses involved in maintaining the church buildings, both the church and the narthex extensions. About a third of these costs are covered by contributions from those who use our buildings.

Curate’s house

This covers the maintenance and repair costs of the curate’s house at 27 Davenport Road. From September 2006 these were offset by a monthly payment of rent from St Mark’s, Bredbury which is shown separately under income (note 3).

Churchyard

This covers the wages and expenses of maintaining our churchyard. These are partly met by our annual churchyard appeal and partly by funeral fees.

Public communications

This is mainly the costs of producing the magazine with the small additional costs of the Chester Diocesan News, notice board, public notices and the web site. Subscriptions and advertisements in the magazine cover the full cost of printing the magazine but not its preparation and distribution.

Governance

This is a new mandatory heading required by the regulations. It covers the costs of the Electoral Roll, Annual Parish Church Meeting, producing the annual report and accounts and the expenses of running the PCC together with any professional fees associated with advice given to the PCC (such as given by accountants, auditors or solicitors).

Allocation of wages and expenses

One of the new requirements of the regulations is that the costs of staff should be allocated to the activities in proportion to their amount of involvement. As a result you will see admin and verger wages and expenses occurring under most of the headings above. Note 14 gives details of how these costs are allocated.

The other notes are fairly straightforward and similar in format to previous annual accounts so I will not go into any further detail.

Independent Examiner’s Report

This is the report to the PCC which is issued by the Independent Examiner (Mrs Victoria Fryman) when she has completed her examination of the accounts. It is very similar to the reports given with previous accounts and shows the scope of the examination and details any problems found.

Conclusion

If you are still reading this you are doing well! I hope that this summary will help you to understand the accounts, but remember you can always ask me for further explanations.

David Scott