Report

The start of this Report has similarities with the position 12 months ago, whereby the 2011 Accounts are now in the hands of the Independent Examiner, with further deterioration in our financial position clearly evident. These show a negative Equity position (but not in terms of cash-flow), although events in 2012 have reversed this position.

In June 2011 our General Fund fell to £4,501 having suffered an excess of expenditure over income since 1 January 2011 of £7,500.  This meant that in theory we had about 3 weeks’ cash in the bank to meet our on-going liabilities, saved only by wedding fees received in advance .  The cause was insufficient income (chiefly Planned Giving) and our inability to meet the full amount of the Parish Share each month.

An emergency budget was prepared, in which we needed to set aside £6,000 to meet Quinquennial repairs to the gutters and stonework at St Bartholomew’s.  Obviously we did not have this money in our General Fund!  Our June income was “average” but our outgoings included the quarterly fee to our organist, a deep clean at the parish church in readiness for the wedding season, plumbing works at St Chad’s to reduce spiralling water bills, and grounds maintenance at both churches.

The PCC took the decision to reduce our Parish Share for 2011 by 20%. This was achieved by reducing the Parish Share from £4,336.92 to £2,600 per month from July 2011.

Action was taken to reduce overheads: two volunteers agreed to look after the grounds maintenance at both churches, although this did entail the purchase of mowers and strimmers (with the cost to us spread over 4 years). Other volunteers work to improve the visual impact of the paths and flower beds of St Bartholomew’s churchyard.

I am glad to report that the costly water bills at St Chad’s are now at far more acceptable levels: a year ago we owed over £3,000 but now one quarter’s bill is to the order of £127.

A meeting took place at the offices of the Chester Diocesan Board of Finance (DBF) followed by meetings with the Archdeacon of Chester. It is quite clear that the £10,400 shortfall in our Parish Share will have to be paid sometime in the future.

In the second half of 2011 our income improved, with an excellent outcome from the Christmas Fair, which netted £1,630. Some heavy seasonal costs in December plus the decision by the PCC to record the full Parish Share as having been paid with the £10,400 underpaid as a liability in the Balance Sheet. This had the effect of showing our General Fund as a negative figure of -£3,060.  However, we did achieve raising £6,000 for the church repairs which will now be spent during 2012.

As your Treasurer I now have a working cash balance which differs greatly from the General Fund balance!  This status quo will continue until such time as we can pay the DBF our arrears for 2011.

This year we have just received a legacy of £8,000 from the estate of Eva Powell. Eva’s Will states it is for the benefit of St Bartholomew’s Church. No decisions have been taken by the PCC, so for the time being our General Fund is now in credit.