BATH ABBEY PAROCHIAL CHURCH COUNCIL FINANCIAL STATEMENTS 31

BATH ABBEY PAROCHIAL CHURCH COUNCIL

FINANCIAL STATEMENTS

31 DECEMBER 2011

Charity Number 1134081


FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2011

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

Accounting policies 12

Notes to the financial statements 14

The following pages do not form part of the financial statements

Detailed statement of financial activities 25


REPORT OF THE TRUSTEES OF THE PCC


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The trustees present their report and the financial statements of the charity for the year ended 31 December 2011.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name Bath Abbey Parochial Church Council

Charity registration number 1134081

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

The Reverend Dr Adrian Mc Connaughie Retired December 2011 Mission Links

The Reverend Claire Robson Visitors

The Reverend Dr Sarah Hartley Ex officio member of all committees

Professor A Stennett (Churchwarden) Ex officio member of all committees

Mr J Key-Pugh (Churchwarden) Ex officio member of all committees

Mr D Dawson Buildings

Mr D Grendon Finance

Commander B King Finance

Dr J Playfair (Vice-chairman) Mission Links, Standing

Mr I Stratton Buildings

Mrs A Abbott Mission Links

Mrs F Beney Personnel

Major R Dunn Retired April 2011 Finance

Mrs N Hanscombe Retired April 2011 Visitors

Dr B Schlenther Personnel

Mr A Bragg Buildings

Mr S Chamberlain Buildings

Mrs C Mercer Visitors

Ms J Pleace Mission Links

Mr L Maycock Buildings

Mr P Clark (Treasurer) Standing, Finance

Mrs R Coe Buildings

Mr M Hudson Visitors

Mrs E Westbrook Mission Links

Mr R Wong Finance

Mr M Butler Appointed April 2011 Personnel

Mr R Kirkland Appointed April 2011 Personnel

Mrs S Langdon Appointed April 2011 Mission Links

Mrs M Young Appointed April 2011 Personnel

Mrs C Bragg (Electoral roll officer)

Administrator Charles Curnock

Secretary Judge A Rutherford


REPORT OF THE TRUSTEES OF THE PCC (continued)


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Auditor Moore Stephens

Chartered Accountants

& Statutory Auditor

30 Gay Street

Bath

BA1 2PA

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 2010.

Role of the Council

The PCC have 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.




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Related Parties

There are six associated charities, namely:

Bath Abbey Trust (reg. no. 1004349) whose objects include the support of major refurbishments of the fabric of

the Abbey;

Bath Abbey Charities (reg. no. 241902) whose object is the relief of hardship and distress to residents of Bath,

both individually and generally;

St. James Memorial Hall Trust (reg. no. 202747) 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. 243684), which is responsible for the

maintenance of Bath Abbey Cemetery;

Friends of Bath Abbey (reg. no. 205082) 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. 1123118) 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. An annual risk review is carried out as part of the insurance renewal

process and specific reviews are carried out 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

In September 2011 the Abbey's new website was launched together with a new brand image designed to make

all material produced by the Abbey, electronically or on paper, more easily recognisable when communicating

with members of the Abbey community, visitors and the people of Bath and beyond.

The Schools Singing Programme continued to thrive during the year with concerts staged in the Abbey. The

programme has expanded to full capacity and there is now a waiting list to join.

During the year the PCC oversaw an experimental series of weekly Sung Eucharist at 11am on Sunday

mornings. It also incorporated a new limited company to take responsibility for the Abbey’s trading activities, in

particular the shop and letting out of Abbey premises. The PCC also discussed proposals for a new marker at the

end of the Cotswold Way and were advised of the decision to place a plaque on the ground in the Abbey

Churchyard, which is not on Abbey premises.

The decision was taken during 2011 to change the management structure of the Abbey to improve

communication and efficiency in the running of day-to-day activities. As a result of this the “senior management

team” was disbanded and replaced with more direct chains of command and weekly meetings open to all

members of staff.




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Development project

During 2011 a significant amount of work was done on the Abbey Development Project. Many option studies

were undertaken and an RIBA Stage C, concept design, was completed during the Autumn. Since then the

design has been further developed and the scope of work has been more clearly defined.

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 2012.

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 2011 was 692, compared with 660 at the end of

the previous year. The average weekly attendance at services, including visitors, during the year was 592 (2010 -

520).

Income from visitors

The number of visitors to the Abbey other than for services was estimated to be approximately 394,000 during

the year. The Abbey shop has continued to perform well, with sales on a par with 2010. Tower Tour income

increased by 5% compared to the previous year.




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FINANCIAL REVIEW

The following were highlights of financial activities during the year:

Total incoming resources amounted to £1,585,626, an increase of £82,165 on 2010. The increase is mainly a

result of an increase in collections, which include £50,000 in respect of the Kenya appeal.

Total resources expended amounted to £1,960,802, a increase of £441,617 on 2010. This increase is accounted

for by the Kenya appeal included in Mission giving as mentioned above, together with expenditure on the

development project in the year which amounted to £514,696, compared to £134,472 in 2010.

There was a deficit of incoming resources of £375,176 (2010 deficit £15,724). This included a surplus of

£54,941 on unrestricted funds, a deficit of £403,783 (which includes expenditure of £424,146 from the Abbey

Church House and development fund) on designated funds and a deficit of £26,334 on restricted funds.

The only movement on the Endowment Fund was the decrease of £7,766 in the value of the Abbey's

investments.

Planned Giving from within the parish was £191,383, being slightly down on 2010. When other collections and

donations are included, income from donors increased by 8.8% on 2010 to £470,985.

Included in donations is an amount of £90,000 received from Friends of Bath Abbey towards the costs of the

development project, and a gift from the Bath Abbey Music Society of £5,000 towards music costs. We are most

grateful for these donations.

We were very grateful to receive legacies amounting to £6,250.

Donations from visitors continued to increase and rose by 3.4% on 2010 to £520,565. Sales in the Abbey Shop

were £327,782, being a similar level to 2010. This is a good achievement as initial development work caused the

outside door of the shop to be closed and the trading area to be halved for a period of 11 weeks early in 2011.

Income from enterprise activities in total amounted to £1,082,083, an increase on 2010 of £43,978, being 4.2%.

Our payment to the Diocesan Common Fund amounted to £195,248, a increase of 6.7% on last year.

We made donations of £48,487 in support of our Mission Links and in addition raised and distributed a further

£79,538 from special collections during the year. A schedule of donations is provided in the notes to the

accounts and is available for review in the Abbey office.

Expenditure on the development project amounted to £514,696 (2010 - £134,472). General fabric maintenance

expenditure decreased slightly from £42,435 to £41,330.

Administration and management expenses in support of the Abbey's activities totalled £187,637, being an

increase of 12.8% on 2010, being mainly staff costs.

After unrealised losses on investments amounting to £7,766 (2010 gain £9,020) there was an overall decrease in

funds of £382,942 (£6,704 decrease in 2010) bringing the balances carried forward on all funds at the end of the

year to £1,518,903 compared with £1,901,038 at the end of 2010.

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 £357,671 and the Abbey Church

House building and development designated fund stood at £516,744.

Throughout the rest of the financial statements reference to unrestricted funds includes designated funds.




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Fixed Assets

The change in fixed assets during the year includes expenditure of £18,587 on upgrading computer equipment.

The current value of the Abbey's freehold properties is believed to be considerably in excess of the book value of

£180,883; 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

decreased from £134,419 to £126,653 during the year.

Funds 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 £357,671.

PLANS FOR FUTURE PERIODS

The Abbey's general recurring income is very dependant (approximately 33%) 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 12%. 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 2012, 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.

From the beginning of 2012 Bath Abbey Limited takes over the “commercial” activities of the Abbey, in

particular the running of the shop and lettings. This is to comply with the requirements of the Charity

Commission and also to minimise any potential tax liabilities.

Development Project

The Abbey Development Project - the footprint project - is planned to complete the RIBA Stage D, design

development, in April and then undertake further design stages throughout 2012/13. The timing of construction

work will be entirely dependent on the success of a fundraising campaign which is underway. The earliest that

construction work could complete is late 2017.

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).




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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 2011 and the Charity (Accounts and Reports) Regulations 2008. 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.

Signed on behalf of the trustees

The Reverend Prebendary E Mason

Chairman and Rector

. 18 April 2012


INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BATH ABBEY PAROCHIAL

CHURCH COUNCIL


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We have audited the financial statements of Bath Abbey Parochial Church Council for the year ended 31

December 2011 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 Chapter 3 of Part 8 of the

Charities Act 2011 and regulations made under section 154 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 144 of the Charities Act 2011 and report in accordance with

regulations made under section 154 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.


INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BATH ABBEY PAROCHIAL

CHURCH COUNCIL (continued)


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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 2011 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 2011.

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 2011 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 18 April 2012


STATEMENT OF FINANCIAL ACTIVITIES


Unrestricted

Funds

Restricted

Funds

Endowment

Funds

Total Funds

2011

Total Funds

2010 Note £ £ £ £ £

The accounting policies and notes on pages 12 to 23 form part of these financial statements.

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INCOMING RESOURCES

Incoming resources from

generating funds:

Voluntary income 1 282,139 195,096 – 477,235 442,172

Activities for

generating funds 2 1,082,083 – – 1,082,083 1,038,105

Investment income 3 23,087 3,221 – 26,308 23,184 ------------------------------------------ -------------------------------- -------------- ------------------------------------------ ------------------------------------------

TOTAL INCOMING

RESOURCES 1,387,309 198,317 – 1,585,626 1,503,461 ------------------------------------------ -------------------------------- -------------- ------------------------------------------ ------------------------------------------

RESOURCES EXPENDED

Costs of generating funds:

Fundraising

trading: cost of

goods sold and

other costs 4 (468,591) (3,821) – (472,412) (451,074)

Charitable activities 5/6 (1,259,377) (220,830) – (1,480,207) (1,063,611)

Governance costs 7 (8,183) – – (8,183) (4,500) ------------------------------------------ -------------------------------- -------------- ------------------------------------------ ------------------------------------------

TOTAL RESOURCES

EXPENDED (1,736,151) (224,651) – (1,960,802) (1,519,185) ------------------------------------------ -------------------------------- -------------- ------------------------------------------ ------------------------------------------

NET OUTGOING

RESOURCES

BEFORE OTHER

RECOGNISED

GAINS AND LOSSES 9 (348,842) (26,334) – (375,176) (15,724) OTHER RECOGNISED

GAINS AND LOSSES

(Losses)/gains on

investment assets – – (7,766) (7,766) 9,020 -------------------------------- ---------------------------- ----------------------- -------------------------------- ----------------------------

NET MOVEMENT IN

FUNDS (348,842) (26,334) (7,766) (382,942) (6,704) RECONCILIATION OF

FUNDS

Total funds brought forward 1,564,802 191,389 144,844 1,901,035 1,968,257

Prior year adjustment 10 – – – – (60,515) ------------------------------------------ -------------------------------- -------------------------------- ------------------------------------------ ------------------------------------------

Total funds brought forward

restated 1,564,802 191,389 144,844 1,901,035 1,907,742 ------------------------------------------ -------------------------------- -------------------------------- ------------------------------------------ ------------------------------------------

TOTAL FUNDS CARRIED

FORWARD 1,215,960 165,055 137,078 1,518,093 1,901,038 ========================================== ================================ ================================ ========================================== ==========================================

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


BALANCE SHEET

31 DECEMBER 2011

2011 2010 Note £ £ £ £

The accounting policies and notes on pages 12 to 23 form part of these financial statements.

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FIXED ASSETS Tangible assets 13 387,905 407,995

Investments 14 126,653 134,419 -------------------------------- --------------------------------

514,558 542,414

CURRENT ASSETS Stocks 15 65,900 52,201

Debtors 16 92,888 108,793

Cash at bank and in hand 1,032,547 1,320,424 ------------------------------------------ ------------------------------------------

1,191,335 1,481,418

CREDITORS: Amounts falling due

within one year 17 (187,800) (122,794) ------------------------------------------ ------------------------------------------

NET CURRENT ASSETS 1,003,535 1,358,624 ------------------------------------------ ------------------------------------------

TOTAL ASSETS LESS CURRENT LIABILITIES 1,518,093 1,901,038 ------------------------------------------ ------------------------------------------

NET ASSETS 1,518,093 1,901,038 ========================================== ==========================================

FUNDS Endowment funds 19 137,078 144,844

Restricted income funds 20 165,055 191,389

Unrestricted income funds 21 1,215,960 1,564,805 ------------------------------------------ ------------------------------------------

TOTAL FUNDS 1,518,093 1,901,038 ========================================== ==========================================

These financial statements were approved by the trustees and signed on their behalf on 18 April 2012 by

The Reverend Prebendary E Mason Mr P Clark

Chairman and Rector Treasurer


ACCOUNTING POLICIES


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Basis of accounting

The financial statements have been prepared under the historical cost convention, except for investments which

are included at market value, 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 2011.

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 its 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. Funds 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.

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.


ACCOUNTING POLICIES (continued)


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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:

Freehold property - 50 years

Other assets - 3 to 10 years

Glockenspiel - 20 years

Pianos - 50 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with

the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held

separately from those of the charity. The annual contributions payable are charged to the statement of financial

activities.


NOTES TO THE FINANCIAL STATEMENTS


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1. VOLUNTARY INCOME

Unrestricted

Funds

Restricted

Funds

Total Funds

2011

Total Funds

2010

£ £ £ £

Donations

Planned giving 191,383 – 191,383 207,046

Collections 65,643 79,538 145,181 95,786

Donations - general 18,863 19,033 37,896 26,747

Donations - music – 5,000 5,000 6,303

Donations - flowers – 975 975 432

Donations - fabric repairs and works – 550 550 2,775

Donations - Friends of Bath Abbey – 90,000 90,000 93,523

Legacies

Legacies 6,250 – 6,250 9,560 -------------------------------- -------------------------------- -------------------------------- --------------------------------

282,139 195,096 477,235 442,172 ================================ ================================ ================================ ================================

2. INCOMING RESOURCES FROM ACTIVITIES FOR GENERATING FUNDS

Unrestricted

Funds

Total Funds

2011

Total Funds

2010

£ £ £

Visitors to the Abbey 520,565 520,565 503,520

Shop sales 327,782 327,782 327,493

Tower tours 93,790 93,790 88,852

Abbey hire and other fees 116,818 116,818 112,476

Singing for Schools 14,450 14,450 2,669

Melody Makers 2,828 2,828 495

Property Rental 5,850 5,850 2,600 ------------------------------------------ ------------------------------------------ ------------------------------------------

1,082,083 1,082,083 1,038,105 ========================================== ========================================== ==========================================

3. INVESTMENT INCOME

Unrestricted

Funds

Restricted

Funds

Total Funds

2011

Total Funds

2010

£ £ £ £

Other interest receivable 23,087 3,221 26,308 23,184 ============================ ======================= ============================ ============================

4. FUNDRAISING TRADING: COST OF GOODS SOLD AND OTHER COSTS

Unrestricted

Funds

Restricted

Funds

Total Funds

2011

Total Funds

2010

£ £ £ £

Visitors to the Abbey 48,552 – 48,552 67,813

Shop 263,902 – 263,902 272,432

Tower tours 54,792 – 54,792 51,056

Abbey hire and other fees 66,630 3,821 70,451 39,108

Singing for Schools 30,470 – 30,470 19,814

Melody Makers 4,245 – 4,245 851 -------------------------------- ----------------------- -------------------------------- --------------------------------

468,591 3,821 472,412 451,074 ================================ ======================= ================================ ================================




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5. COSTS OF CHARITABLE ACTIVITIES BY FUND TYPE

Unrestricted

Funds

Restricted

Funds

Total Funds

2011

Total Funds

2010

£ £ £ £

Parish Share 195,248 – 195,248 182,912

Mission Links 48,487 95,338 143,825 96,472

Operating costs 166,936 – 166,936 165,552

Music costs 112,547 6,021 118,568 119,464

Work of Ministry 74,638 4,224 78,862 95,108

Fabric maintenance 40,740 590 41,330 42,435

Depreciation 8,998 24,107 33,105 60,816

Development project 424,146 90,550 514,696 134,472

Support costs 187,637 – 187,637 166,380 ------------------------------------------ -------------------------------- ------------------------------------------ ------------------------------------------

1,259,377 220,830 1,480,207 1,063,611 ========================================== ================================ ========================================== ==========================================

6. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE

Charitable

Giving

Work of the

Abbey Support costs

Total Funds

2011

Total Funds

2010

£ £ £ £ £

Parish Share – 195,248 – 195,248 182,912

Mission Links 118,505 25,320 – 143,825 96,472

Operating costs – 166,936 187,637 354,573 331,932

Music costs – 118,568 – 118,568 119,464

Work of Ministry – 78,862 – 78,862 95,108

Fabric maintenance – 41,330 – 41,330 42,435

Depreciation – 33,105 – 33,105 60,816

Development project – 514,696 – 514,696 134,472 -------------------------------- ------------------------------------------ -------------------------------- ------------------------------------------ ------------------------------------------

118,505 1,174,065 187,637 1,480,207 1,063,611 ================================ ========================================== ================================ ========================================== ==========================================

7. GOVERNANCE COSTS

Unrestricted

Funds

Total Funds

2011

Total Funds

2010

£ £ £

Audit fees 5,500 5,500 4,500

Current taxation charge/credit 1,305 1,305 –

Deferred taxation charge/credit 1,378 1,378 – ----------------------- ----------------------- -----------------------

8,183 8,183 4,500 ======================= ======================= =======================

8. ANALYSIS OF SUPPORT COSTS

Work of the

Abbey Total 2010

£ £

Staff costs 117,673 112,898

Legal and professional 4,031 1,058

Finance costs 6,840 6,578

Depreciation 4,130 841

Office running expenses 29,785 26,391

Other costs 25,178 18,614 -------------------------------- --------------------------------

187,637 166,380 ================================ ================================




- 16 -

9. NET OUTGOING RESOURCES FOR THE YEAR

This is stated after charging:

2011 2010

£ £

Staff pension contributions 12,798 8,931

Depreciation 42,819 68,640

Auditors' remuneration:

- audit of the financial statements 5,500 4,500 ============================ ============================

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 2010 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 were removed from the 2010 accounts as a prior year adjustment.

11. STAFF COSTS AND EMOLUMENTS

Total staff costs were as follows: 2011 2010

£ £

Wages and salaries 502,341 442,668

Social security costs 33,472 29,002

Other pension costs 12,798 8,931 -------------------------------- --------------------------------

548,611 480,601 ================================ ================================

Particulars of employees: The average number of employees during the year, calculated on the basis of full-time equivalents, was as

follows:

2011 2010

No No

Enterprise activities - Shop and Heritage Vaults 3 4

Enterprise activities - Visitors Officer 1 1

Vergers 4 3

Office and administration 5 4

Music 2 1

Youth and childrens' co-ordinator 1 1

Mission Links 1 1

Tower Tours 2 1 -------------- --------------

19 16 ============== ==============

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 72 choir members (2010 - 64),27 Tower Tour guides (2010 - 20) and 14

stage crew (2010 - 12).

No employee received remuneration of more than £60,000 during the year (2010 - Nil).




11. STAFF COSTS AND EMOLUMENTS (continued)

- 17 -

No remuneration or reimbursement of expenses (2010 - nil) has been made to the Members of the PCC.

12. TAXATION

In respect of the year:

2011 2010

£ £

Taxation based on the results for

the year at 20% (2010 21 %)

Current taxation charge 1,305 -

Prior year taxation charge 1,378 - ----------------------- --------------

2,683 - ======================= ==============

13. TANGIBLE FIXED ASSETS

Freehold

property Piano Equipment

Fixtures &

Fittings

Sound,

Screens &

Staging Total

£ £ £ £ £ £

COST At 1 Jan 2011 212,250 70,464 136,095 69,736 256,223 744,768

Additions – – 22,231 498 – 22,729

Disposals – – (59,056) (25,943) – (84,999) -------------------------------- ---------------------------- -------------------------------- ---------------------------- -------------------------------- --------------------------------

At 31 Dec 2011 212,250 70,464 99,270 44,291 256,223 682,498 ================================ ============================ ================================ ============================ ================================ ================================

DEPRECIATION At 1 Jan 2011 28,467 7,992 102,136 48,579 149,598 336,772

Charge for the year 2,900 1,737 7,908 5,585 24,690 42,820

On disposals – – (59,056) (25,943) – (84,999) ---------------------------- ----------------------- -------------------------------- ---------------------------- -------------------------------- --------------------------------

At 31 Dec 2011 31,367 9,729 50,988 28,221 174,288 294,593 ============================ ======================= ================================ ============================ ================================ ================================

NET BOOK VALUE

At 31 Dec 2011 180,883 60,735 48,282 16,070 81,935 387,905 ================================ ============================ ============================ ============================ ============================ ================================

At 31 Dec 2010 183,783 62,472 33,959 21,157 106,625 407,996 ================================ ============================ ============================ ============================ ================================ ================================

14. INVESTMENTS

Movement in market value 2011 2010

£ £

Market value at 1 Jan 2011 134,419 125,399

Net gains on revaluations in the year ended 31 December 2011 (7,766) 9,020 -------------------------------- --------------------------------

Market value at 31 Dec 2011 126,653 134,419 ================================ ================================




14. INVESTMENTS (continued)

- 18 -

Analysis of investments at 31 Dec 2011 between funds Unrestricted

Funds

Restricted

Funds

Endowment

Funds

Total Funds

2011

Total Funds

2010

£ £ £ £ £ Listed investments

UK Quoted Shares - - 126,653 126,653 134,419 ============== ============== ============== ============== ================================

15. STOCKS

2011 2010

£ £

Stock 65,900 52,201 ============================ ============================

16. DEBTORS

2011 2010

£ £

Trade debtors 24,072 33,862

Income tax recoverable 27,062 30,384

Other debtors 10,138 19,630

Other debtors 1,746 –

Prepayments 29,870 24,917 ---------------------------- --------------------------------

92,888 108,793 ============================ ================================

17. CREDITORS: Amounts falling due within one year

2011 2010

£ £

Bank loans and overdrafts 18,423 6,099

Trade creditors 123,217 80,846

Taxation and social security 14,772 15,627

Wages control account 9,104 8,042

Accruals 22,284 12,180 -------------------------------- --------------------------------

187,800 122,794 ================================ ================================

18. COMMITMENTS UNDER OPERATING LEASES

At 31 Dec 2011 the company had annual commitments under non-cancellable operating leases as set out

below.

Land and buildings

2011 2010

£ £

Operating leases which expire: After more than 5 years 14,000 - ============================ ==============




- 19 -

19. ENDOWMENT FUNDS

Balance at

1 Jan 2011

Outgoing

resources

Balance at

31 Dec 2011

£ £ £

Permanent endowments

General 52,249 (3,521) 48,728

Music 82,595 (4,245) 78,350

Diptychs 10,000 – 10,000 -------------------------------- ----------------------- --------------------------------

144,844 (7,766) 137,078 ================================ ======================= ================================

20. RESTRICTED INCOME FUNDS

Balance at

1 Jan 2011

Incoming

resources

Outgoing

resources Transfers

Balance at

31 Dec 2011

£ £ £ £ £

Piano fund 57,011 – (1,370) – 55,641

Special collections – 79,538 (76,738) (2,800) –

General 776 1,628 (2,268) – 136

Music fund 469 8,221 (6,021) – 2,669

Fabric projects

capital fund 104,683 – (21,004) – 83,679

Homeless initiative 11,805 15,194 (18,600) 2,800 11,199

Fabric projects

legacy fund 5,000 – – – 5,000

Staging fund 10,516 – (4,349) – 6,167

Music capital fund 1,129 – (565) – 564

Youth project – 3,186 (3,186) – –

Development

project – 90,550 (90,550) – – -------------------------------- -------------------------------- -------------------------------- ----------------------- --------------------------------

191,389 198,317 (224,651) – 165,055 ================================ ================================ ================================ ======================= ================================

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.




- 20 -

21. UNRESTRICTED INCOME FUNDS

Balance at

1 Jan 2011

Incoming

resources

Outgoing

resources Transfers

Balance at

31 Dec 2011

£ £ £ £ £

Fabric and general

purposes fund 302,976 4,695 – 50,000 357,671

Abbey Church

House building and

development fund 924,476 16,414 (424,146) – 516,744

The Project fund 14,655 20,474 (30,470) 3,000 7,659

Legacies fund 9,560 6,250 – – 15,810

General Funds 313,135 1,339,476 (1,281,535) (53,000) 318,076 ------------------------------------------ ------------------------------------------ ------------------------------------------ ----------------------- ------------------------------------------

1,564,802 1,387,309 (1,736,151) – 1,215,960 ========================================== ========================================== ========================================== ======================= ==========================================

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 project fund is monies set aside to assist with the establishment of new projects.

The legacies fund has been set up for legacy income where the trustees wish to specifically identify

subsequent expenditure.

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible

fixed assets Investments

Net current

assets Total

£ £ £ £

Restricted Income Funds:

Piano fund 55,641 – – 55,641

General – – 136 136

Music fund – – 2,669 2,669

Fabric projects capital fund 83,679 – – 83,679

Homeless initiative – – 11,199 11,199

Fabric projects legacy fund – – 5,000 5,000

Staging fund – – 6,167 6,167

Music capital fund 564 – – 564 -------------------------------- -------------- ---------------------------- --------------------------------

139,884 – 25,171 165,055 -------------------------------- -------------- ---------------------------- --------------------------------

Endowment Funds:

General 10,000 126,653 425 137,078

Unrestricted Income Funds:

Designated Funds – – 847,884 847,884

General Funds 238,021 – 130,055 368,076 -------------------------------- -------------------------------- -------------------------------- ------------------------------------------

238,021 – 977,939 1,215,960 -------------------------------- -------------------------------- -------------------------------- ------------------------------------------

Total Funds 387,905 126,653 1,003,535 1,518,093 ================================ ================================ ========================================== ==========================================




- 21 -

23. RELATED PARTY TRANSACTIONS

During the year the PCC received monies from the following:

Friends of Bath Abbey £90,000 (2010 - £93,523)

Bath Abbey Music Society £5,000 (2010 - £3,000)

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 31 December 2010 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 was repaid in 12 equal monthly instalments during 2011.




- 22 -

MISSION LINKS PAYMENTS

Mission Links payments summary 2011

Work of the Abbey …

… through the Abbey's Homelessness Initiative 20,089

… through a stall at the Christmas

Market

Support for Palestinian Christians 538

.. through subsidies of concerts and services

Support for local charitable organisations 1,100

… through distributing free copies of "Jesus Books"

Support for the mission of the church 1,500

… through raising money for charitable giving

Cost of making the Harvest Appeal

806

Sundry extra (small) expenses 448

Braunschweig visit 839

Total Work of the Abbey

25,320

Charitable giving

Individuals - Mission Links Partners abroad

Grants to enable mission work abroad 1,428

Institutions

Supporting …

Convent of St John of Kronstadt 1,050

Fellow Christians in need

Bath & Wells Zambia link 6,380

Anglicans in our linked dioceses

Bath Women's Refuge 1,000

victims of domestic violence

Fareshare South West 1,000

Feeding the needy hungry

Cruse Bereavement Care 1,000

Counselling comfort for bereaved children

Church Mission Society 3,100

Christian mission abroad

Clean Slate 5,063

people with employment needs

Dorothy House 2,000

terminally ill adults

Focus Christian Counselling 8,000

people in need of counselling

Genesis Trust / Street Pastors 9,500

outreach work in Bath

Rebuilding Sri Lanka 4,100

our mission partners' work

St Mark's School 1,000

the C of E secondary school

ACK Marsabit - Kenya clergy donation 1,000

Fellow Christians in need

ACK Marsabit - Kenya famine relief 64,246

Famine relief

Wycliffe Bible Translators 4,100

Christian mission abroad

Royal British Legion 1,413

a welfare organisation

9 further grants of less than £1,000 3,125

… to similar organisations

117,077

Total Charitable giving

118,505

Total Mission Links

143,825




- 23 -

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 3,400

... 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

_______

Total Work of the Abbey 27,559

Charitable giving

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 96,472

Documents

BATH ABBEY PAROCHIAL CHURCH COUNCIL FINANCIAL STATEMENTS 31