Treasurer's Report

For those who are interested only in the headlines:

Overall, the church has had a remarkably blessed year financially in 2020, despite the disruption caused by Covid-19, with an overall net loss (income less expenditure, including restricted funds) of only £3.4k; comprising total income of £335.9k, less total expenditure of £338.8k, and investment revaluations of -£0.5k.

This actual overall net loss of £3.4k was in line with thebudgeted annual loss of £3.5k for 2020.

This compares to a net surplus in 2019 of £29.9k.

For those who like a little more detail:

Total income in 2020 of £336k, including donations for restricted uses, was £38k over budget, but £9k down on 2019. The Covid-19 pandemic has had a significant impact on cash collections which were down £25k on budget and £27k on 2019 levels, as well as reductions in other fee-earning activities, such as weddings and church hall surplus. One-off donations of £122k increased by £70k versus budget, and by £45k versus 2019. Of the one-off donations, £38k relates to the 5-Year Vision and will be carried forward to 2021 for future use. The continued generosity of the church community across all forms of financial support, and pledges to increase planned giving contributions in support of the 5-Year Vision, are greatly appreciated, particularly given the impact of COVID-19.

Total expenditure of £339k was £37k above budget (£20k above 2019). The increase in expenditure primarily resulted from additional giving to those most in need within the church community and to charities, as well as increased staffing and project costs. Underlying unrestricted expenditure has ended the year £20k under budget, with labour costs £8k over budget due to expansion of the staff team, but offset by £12k savings in running costs and £18k savings in expenses due to the reduction in activity due to Covid restrictions.

Following a financially positive 2019 (which saw an overall£30k net surplus), the church has seen a net loss of £26k in 2020 forunrestricted funds. However, this has been offset by having a net surplus of£22k for restricted funds, including one-off donations for the 5-Year Visionwhich have been reserved for utilisation in future years. In combination, thechurch has had an overall net loss of £3.4k in 2020, which is in line with the2020 budget.

Considering the balance sheet, the overall £3.4k net loss forthe year has decreased net assets from £196k at 31 December 2019, to £192k at31 December 2020. Net assets at 31 December 2020 comprise cash and deposits of£120k (a decrease of £2k in the year), investments of £77k (-£0.5k in theyear), and working capital of -£5k (a decrease of £1k).

Compared to our Reserves Policy minimum threshold forunrestricted funds of £81k, we had £92k of unrestricted funds at 31 December2020, giving a headroom of £11k; down from £37k at 31 December 2019. This isconsistent with the Diocesan recommendations to utilise reserves during theCOVID pandemic where required. Note also that restricted, endowment anddesignated funds have increased by £21k to £100k in the year.

Looking forward to 2021, we have a prudent budget for theyear ahead to cover the costs of our current and planned church activities. Wewill continue to evaluate activities and actions to ensure financial stabilityas COVID-19 restrictions change.

For those who like all the detail: The full 2020 Treasurer’s Report is available to read as part of the ASM Annual Report for 2020, along with the Churchwardens’ Report and the Electoral Roll Report.

James Tindal-Robertson, ASM Treasurer