St James’ Church

Parish of Finchampstead
Deanery of Sonning
Diocese of Oxford

The Parochial Church Council (PCC) presents its Annual Report and Financial
Statements for the year ended 31 December 2010.

St James’ Church
Church Office
Manor House
Church Lane
Finchampstead
Berkshire
RG40 4LU
Tel: 0118 973 0133
Office@stjames.finchampstead.co.uk

Registered Charity (No 1130075)

CONTENTS
1. Annual Report of the Parochial Church Council (Trustees’ Report) Page 2 - 7
2. Independent Examiner’s Report Page 8
3. Statement of Financial Activities (SOFA) Page 9
4. Balance Sheet Page 10
5. Notes to Financial Statements Page 11 - 16
St James’ Church Finchampstead
Trustees’ Annual Report for the year ended 31 December 2010
1. Trustees’ Annual Report
Administrative Information
Finchampstead Parochial Church Council is the governing body for St. James’ Church, Finchampstead.
The church is situated at Church Lane, Finchampstead, Wokingham, Berkshire, RG40 4LU and is in
Sonning Deanery in the Diocese of Oxford within the Church of England.
The PCC’s principal bankers are CAF Bank Ltd.
The independent examiner is Karen Symons FCA, Willow Corner, 7 Ackrells Mead, Little Sandhurst,
Berkshire GU47 8JJ
The Parochial Church Council (PCC) is a registered charity. – no 1130075 and all its members
(elected, ex officio and co-opted) are now Charity Trustees registered with the Charity Commission.
Members of the PCC are generally either ex-officio or elected by the Annual Parochial Church Meeting
(APCM) in accordance with the Church Representation Rules. Under the Synodical Government
Amendment Measure 2003, the elected places come up for election on a three year cycle and
members may stand for re-election. If anyone stands down early, a replacement fills the remainder of
the three year term, to maintain the three year rotation. Three groups have been established, with those
to replace members standing down early being decided by lot after the required total number have
been elected.
The three groups are now designated A, B & C below as follows:
Group A - elected to APCM 2011.
Group B - elected to APCM 2012
Group C - elected to APCM 2010 and 2013.
Deanery Synod representatives are elected for 3 years (at present to 31/05/2011) and become ex
officio members of the PCC.
The Churchwardens are elected annually at the ‘Vestry Meeting’ preceding the APCM and, under the
Churchwardens Measure 2001, may be re-elected up to a maximum of six consecutive years served.
The churchwardens are admitted to office by the bishop between the APCM and 31st July each year
but take up their place on PCC immediately after election. A retiring churchwarden continues in office
until the successor is admitted to office.
The Associate Priest is automatically part of the PCC. Licensed Lay Ministers may be part of the PCC
but Dr Keith Atton does not wish to be so.

During the year the following served as members of the PCC (Trustees):-
Incumbent: Rev. Dr Richard Warden – (Chairman) to 31 July 10 then Vacancy
Associate Priest: Rev. John Edwards (NSM)
Churchwardens: Mrs Nicky Alder (served continuously since APCM 2008)
Mr Ed Sampson (served continuously from APCM 2009)
Representatives on the Deanery Synod:
Mr. Paul Arscott (Licensed Lay Eucharistic Minister)
Mrs Julia Arscott
Mrs Carolyn Fox (PCC Secretary)
Mrs Gill Myall to APCM 10
Mrs Julie Morley from APCM 10
Elected Member:
Mrs. Sarah Booth (C)
Mr. John Brain (B)
Mrs Barbara Brice (C)
Mrs. Mary Dewhurst (A)
Mr. Maurice Driver (B)
Mrs Rebecca Head (B)
Mrs. Daphne Lucan-Wilson (C) to APCM 2010
Mr Jonathan Marshall (A)
Mrs Kate Meads (A)
Mrs. Julie Morley (C) to APCM 2010
Mrs. Gill Myall (C ) from APCM 10
Mr Richard Owen (A)
Mr Richard Peat (B) (Lay Vice Chair)

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St James’ Church Finchampstead
Trustees’ Annual Report for the year ended 31 December 2010
Mr Andy Witting (Treasurer from 18/05/09 to 24/5/10) (C) to APCM 10
Mr Ian Woolston (C) from APCM 2010
Co-opted Member
Mr Don Monk (to APCM 2010 & then from 24/05/10)
Mr John Slingsby (from 24/5/10) (Treasurer from 24/5/10)

Structure, governance and management

The PCC is a corporate body formed under the Parochial Church Council (Powers) Measure 1956 as
amended. The PCC makes all decisions corporately except that the Standing Committee has delegated
powers to make decisions between PCC meetings subject to keeping the PCC informed as fully as
necessary.
The practical work of the PCC is largely devolved to committees and working groups which report back
regularly and bring recommendations for decision to the PCC: (Church Conservation Working Group;
Communications, IT and Publicity committee; Conservation Appeal Group; Outreach and Discipleship
committee; Fabric & Property; Finance & Stewardship; Good Practice Advisory Group, Worship &
Liturgy; Mission & Charity; Pastoral; Social & Fundraising.)
The PCC is responsible for all parish finance, including the appointment of a treasurer, and is required
to ensure that the financial statements are examined by an independent examiner prior to presentation
to the APCM.

Objectives and activities

Finchampstead PCC has the responsibility of co-operating with the Priest-in-Charge, the Rev. Dr
Richard Warden until summer 2010, in promoting in the ecclesiastical parish the whole mission of the
Church, pastoral, evangelistic, social and ecumenical and for maintaining this work during the
interregnum.
It also has responsibility for the maintenance of the Church, Churchyard, Manor House Flats, Church
Centre, Hall and associated grounds and 43, McCarthy Way. The mission statement is ‘Given that God
comes first in everything, make ourselves and others better disciples of Christ’.
The PCC has, when planning activities, considered the Charity Commissioner’s guidance on public
benefit and, in particular, the specific guidance on charities for the advancement of religion. A key
feature of the charity registration was the benefits that St James' provides to the members of the local
and wider community. These include:
− A focus for the Christian spiritual life of the local community.
− The provision of religious services throughout the Christian calendar and on key occasions in the
nation's life. These are supplemented by Baptisms, Marriage services, Funeral services and Burials.
Such services of the established Church of England are open to everyone.
− A sacred place of tranquillity, peace or solitude for spiritual refreshment or personal meditation.
− Pastoral care for those not able to visit St James'.
− An enhanced venue for the provision of music and concerts, both religious and secular.
− Complementary venues for Church related clubs and activities as well as private functions.
− Support to the village school, and other non-denominational schools within the local area.
− A local 'Living Museum' preserving local history for local people and those beyond.
− Physical access for both the able and the disabled.
The parish aims to give 10% of its unrestricted income each year to other organisations involved in
mission in the UK and overseas or involved in humanitarian relief and development work.

Charity Trustee Induction and Training

The previous process was, pre-election, to remind candidates in the APCM Information Pack that they
would be required to “take the role of Charity Trustee seriously” and to highlight in the nomination
sheets that they should not be “disqualified from being a Charity Trustee.” The implications of the role
of Charity Trustee were not then explained more fully until those elected were asked to sign the
registration forms. The process has now been considerably strengthened and, pre-election, a full page
paper setting out 7 Primary Responsibilities of Charity Trustees has been added to the 2011 APCM
Information Pack with additional reference to the Charity Commission publication ‘The Essential

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St James’ Church Finchampstead
Trustees’ Annual Report for the year ended 31 December 2010
Trustee: What you need to know.’ The nomination sheets all remind candidates that they will become
Charity Trustees and refer them to this ‘Legal Responsibilities’ paper. Further induction and training will
continue to be given when registration forms are completed for new PCC members.

Achievements and performance

Church attendance
The Church Electoral Roll revised for the 2010 APCM saw an increase of numbers to 397 parishioners
(2009, 376). The average weekly Sunday attendance, counted during October 2010, was 225 (2009,
248). A further 207, mainly children, attended midweek school and Fledgelings harvest services in early
October. The number increased at festivals (Easter Day 2010, 505 (2009, 463)); Christmas Day 2010
attendance was 204 after many had attended the Wellington College Chapel midnight service and 648
attended the one Christingle service on Christmas Eve which we held at Wellington College Chapel.
The short 9.30am Family Services twice monthly are lively and well attended and continue to be a
particular growth area within the church community. A service for the local Church of England Primary
school is held each half term, either in the church or the school. During the year there were 37
baptisms, 4 weddings and 7 funerals, of which 3 were followed by burials in the churchyard. A further 9
interments of ashes took place in the churchyard during the year.

Risk Management
The PCC recognises its responsibility to assess and manage the various risks to which it is exposed:
a) Financial
The Financial Management software enables the Treasurer to make regular reports to the PCC and to
track and analyse trends much more effectively. The PCC asks the Finance & Stewardship Committee
to assess the income/expenditure situation and takes appropriate action to ensure its financial stability
regularly. Control is maintained over cash receipts and cheques over £1000 drawn on the CAFcash
account require two signatures from a short designated list. All payments via online banking require to
be authorized by a ‘second signatory’. 2010 saw the introduction of increased recording of invoices
received and paid in order that there is a full audit trail from receiving the invoice to being able to
identify where the invoice is posted in the accounts. All financial data on computer is backed up
regularly so that records can be recreated if necessary. Fund balances are in good interest bearing
accounts mainly with the Diocese and CAF.
b) Reputational
The PCC and its committees oversee all activities that impact on the local population as appropriate.
c) Statutory
The PCC and Church members in general have a wide range of expertise that is called upon to ensure
that the PCC complies with its legal and statutory duties. One PCC member updates Charity Trustee
details with the Charity Commission and submits accounts and reports. The Health and Safety advisor,
Ian Clements of Quadriga Ltd, appointed in March 05, ended his contract in April 2010 and on 20
September 2010 a new contract was signed with Flemming Westphalen of qsuk ltd to supply Health &
Safety advice. He is currently reviewing the PCC’s documents and processes in order to give up to
date advice. In line with the Licensing Of Premises Act, the Church Centre has an Entertainment
Licence. Fire Protection advice has been given by RES, resulting in a review and renewal of fire
protection devices to meet statutory guidelines. A Data Protection Officer has been appointed.
d) Operational
The PCC takes responsibility for maintaining the fabric of our building, particularly this year through the
completion of a major conservation project. Trustee Indemnity Insurance is in place for PCC members.
Our Insurance policies with Ecclesiastical Insurance are reviewed annually, thanks to the expertise of
Peter McBrien. Contractors on Church premises are asked to sign up to a code of conduct, ‘Guidelines
for the Safety of Contractors on Church Premises’(copy in Church Office)and a Policy and Principles
document for the safety of volunteers working on the premises is being reviewed by the new Health &
Safety Advisor. Its contents had been shared with the Tuesday Working Party. The PCC has a Serious
Incident Reporting Procedure for use by its groups (copy in Church Office). The Pastoral Team now
has a Pastoral Care Guidelines document. Non-PCC members with access to parish records now sign
a confidentiality statement.

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St James’ Church Finchampstead
Trustees’ Annual Report for the year ended 31 December 2010
Review of the Year
General
In 2010 the full PCC met 9 times, three times as extra meetings to transact a particular item of business
(purchase of photocopier, preparation for joint PCC meeting with St Mary & St John and review of the
Parish Profile). The average attendance over the 9 meetings was very good. The PCC met with the
Archdeacon in July to be advised about the coming interregnum, the implications of the Deanery
Mission Plan and the processes leading to the appointment of a Rector/Rector Designate and an
Associate Priest. A joint PCC Away Day with St Mary & St John’s PCC in September began the
process of formulating a joint vision for the two parishes. The Standing Committee met 6 times, once
for an ‘Away Morning’ on Leadership & Management, and their minutes were distributed to the whole
PCC. The PCC committees/teams (Social & Fundraising; Fabric & Property; Finance & Stewardship;
Mission & Charity; Communications, IT & Publicity; Pastoral; Worship & Liturgy; Outreach &
Discipleship) met regularly during the year and submitted written reports to each full PCC meeting.
These were discussed where necessary, particularly where a decision was required. The Conservation
Working Group also reported to PCC. The Conservation Appeal Group and Good Practice Advisory
Group are held in abeyance pending being asked by PCC to undertake tasks.
Major items for 2010
The early part of the year was focused on arrangements for taking back the church building from the
contractors following the conservation work, including ordering new hymn books with a bigger range of
hymns and purchasing a clavinova to provide more musical styles. In March the Bishop of Oxford re-
dedicated the church building at a service largely for the church community. In July a civic service with
the Bishop of Reading started a ‘Festival Week and Flower Festival’ to invite in the local community,
particularly those who had contributed to the Conservation Fund, to see the refurbished building. Rev
Richard Warden who had announced at the APCM that he was to leave the parish was given a fitting
‘send-off’ in July.
The 2010 Deanery Mission Plan, agreed in the early part of the year, proposed re-uniting St James’
parish with St Mary & St John. The process of finding a replacement incumbent and associate priest
therefore involves both PCCs working together. A joint team was set up to produce a Parish Profile by
the end of the year to enable the advertising process to begin. The PCC appointed two Parish
Representatives and resolved not to pursue Resolutions A & B (On women priests).
A Friends of St James scheme was agreed by PCC and launched during Festival Week.
The decision at the end of 2009 to give the majority of our mission giving to support four charities for
three years and engage the congregation with these charities has resulted in several speakers bringing
news to the congregation and a congregational vote to choose a Church Urban Fund project to support.
The PCC has contributed to the consultation on the Arborfield Housing Plan and offered to work with
the Council on the provision of church facilities at present lacking.
The parish sponsorship of five children’s education in Kimberley, South Africa is on a good financial
footing with oversight of the funds by the Kimberley Diocese. However to strengthen the personal link
with St Matthew’s Kimberley the PCC has agreed to send two people to visit in 2011.
The Planned Giving Campaign in the autumn was biblically based and during the year there has been a
focus on Prayer with a Quiet Day and setting up of a Parents’ Prayer Group at the Church School.
Financial Review
1 Summary of results for the year
1.1 Total incoming resources during 2010 were £208,100 (2009: £224,871), the drop is represented by
a reduction in the restricted funds. The financial year 2010 saw a drop off in the conservation income
which accounted for a majority of the difference from 2009 (£62,953) v 2010 (£24,507). The increase in
unrestricted funds, 2010 (£183,591) v 2009 (£161,918), was principally as a result of the continued
efforts to convert planned giving from envelopes to standing orders together with a further increase in
the value of donations where we are able to re-claim the Gift Aid which lead to a £3,335 increase in the
value of Income Tax claimed over the year. The middle of the year also saw us able to offer wedding
and funeral services again following the conservation work on the church and this generated additional
income over the 2009 figures.
1.2 Total expenditure in 2010 was £471,307 (2009: £449,226), a majority of the 2010 expenditure
continued to be from the conservation project (2010: £288,175) and represents over 50% of the total
conservation expenditure. The unrestricted expenditure during the year was £8,083 higher than 2009,
mainly from the increase in the parish share (+£2,500) along with increases in the running costs of the

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St James’ Church Finchampstead
Trustees’ Annual Report for the year ended 31 December 2010
church centre which included the cost of a new PC that was too immaterial to capitalise. Staff costs
were higher during the year as there was an overlap in salary costs for the parish administrator role and
the Director of Music was also awarded an increase of 5% during the year. Our church groups have
generated the same level of income as previous years but have done so while incurring lower costs.
1.3 Unrestricted funds as at the year ending 31st December were £867,754 (2009: £847,335), this
increase was mainly driven by the revaluation of the PCC Equity Investment (£33,000 gain) and the
revaluation of 43 McCarthy Way (£23,000 gain). The overall gain in investments was mainly offset by
the transfer from PCC General funds to the conservation fund for reasons covered in section 1.4 of this
Finance report. Income from the investment properties continued to supplement the planned giving
from our generous congregation but there is an immediate need to allocate funds to reinvest into the
investment properties. To this end the PCC agreed that two designated funds are established to
recognise and allow the Fabric & Property committee a fund from which they can draw down for their
maintenance program and list of key priorities. During 2010 one of our tenants has fallen behind with
their rental payments, we have not recognised any provision for this in the accounts. Dividend income
in the year was £2,500 higher than the previous year.
1.4 The tail end of our Conservation project warrants separate disclosure in this report as there are still
some challenges that exist before the project is fully completed. Following the handing over of the site
from Farr & Roberts the PCC made a claim to the Listed Places of Worship Grant Scheme (LPW) for
the recovery of VAT on “Repair” work that fell within the project. The claim that was submitted to LPW
was for £23,422 and is still subject to review due to a backlog of processing at the administrators of the
LPW grant scheme. The final cost of the project has been recognised in the accounts with the inclusion
of the 2.5% retention that is due for payment at the end of March, this accrual for retention cost is
£10,624 (incl VAT). Due to the nature of the project and the complex work involved in certain areas the
conservation project was in a deficit position of £58,982 (including the retention but excluding the VAT
reclaim from LPW) as at 31st December. The PCC have decided that the deficit will be reduced by
allocating social funds from future events, including net income generated from the Summer Fete. A
transfer of funds from General PCC Funds to Conservation took place on 31st December, meaning the
conservation fund is shown at a small surplus in the year end accounts. The intention is to reverse this
transfer as further conservation income is received.
1.5 In summary the income position has developed well over the year and the expenses have been
kept under control. The additional costs on the conservation project represent a challenge and it is
important to finalise the VAT position. The series of Sermons on Christian Giving during October have
generated an uplift in Income in the tail end of 2010 and the start of 2011.

2 Organisation
2.1 Treasury Team – Thanks are extended to the Treasury Team who have continued to work hard
during the 2010 financial year. The final stages of the conservation project led to additional work and
often difficult bookings within the accounts yet these were managed well. A new system was
implemented during the year that made it easier to trace invoices through the system, this has reduced
queries and enabled the Treasury Team to understand the monthly financial postings. Special thanks
are due to Keith Hunt, Debbie Watthey and Marion Row who continue to support the Treasurer in his
duties.
2.2 Finance & Stewardship Committee (F&S) – The Committee continued to meet regularly during the
year. Financial responsibility is designated from the PCC to the F&S committee and the committee
continues to be active in all aspects of church life. Thanks go to all members of the F&S committee
who work hard during the year to provide input into the key financial decisions in respect of our Church.
Special thanks should be extended to Robert Alder, our Giving and Gift Aid co-ordinator, who continues
to identify opportunities for planned giving in the church and whose hard work has seen a growth in
Income over the year.

3 Processes
3.1 Donation Processes - Robert Alder deserves much credit for the way in which he has run the whole
of our Gift Aid & Giving system. Together with Rev. John Edwards, Robert has encouraged members
of the congregation to move to direct donations through standing order which has reduced the amount
of administrative work required in relation to the counting and banking of cash and cheques.
The principal routes for planned giving are:-
• Standing Order direct to the CAF Bank account for Church and Parish general funds;

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St James’ Church Finchampstead
Trustees’ Annual Report for the year ended 31 December 2010
• Purple Envelopes for regular Giving to Church and Parish general funds;
• White Envelopes for general ad hoc donations to Church and Parish general funds;

Automation of the donation & giving processes has given us the ability to make more regular gift aid
claims from HMRC, with associated cash flow benefits. A series of sermons were used in late 2010 to
communicate the financial challenges at St James, and this has seen good early results from our
congregation.
3.2 CAF Banking / CCLA - Improvements made in 2009 have meant that banking arrangements have
remained largely unchanged in 2010 with ever increasing movement away from the use of cheques to
online payment origination to suppliers and for salary and expenses payments. Online banking,
through CAF Bank’s secure website remains a key element of our day-to-day treasury activities. We
can view and download information about all CAF Bank accounts, view statements, set up ad hoc and
regular payments. This has also contributed to our ability to produce timely month end financial
accounts.
3.3 Reserves Policy
An appropriate Reserves Policy is at present under consideration.

4 Outlook to 2011
4.1 Parish Share – The parish has been advised that the Parish Share for 2011 has increased above
inflation (+6.58%), taking our overall contribution to the Diocese from £81k to £85k. This is a significant
challenge to manage during 2011. The higher Parish Share, in addition to the VAT increase mean the
cost base of the Parish has increased significantly before any additional costs are incurred from the
ever expanding work of our Church.
4.2 Manor House works – The F&P committee have effected some minor works during 2010 which are
aimed at reducing the work list on the Manor House and the investment properties. There remain some
challenges in identifying the key aspects of work that need to be completed and the F&S committee
continues to work closely with the F&P committee to ensure that cash is available for the highest
priority elements of work. The two designated funds that have been set aside for F&P works will help
the F&P committee to plan the work that can be conducted in 2011.
4.3 VAT Claim & conservation – As previously discussed the LPW VAT claim has not yet been
finalised. There are likely to be further queries from the scheme’s administrators. There remains a risk
that the PCC do not receive the full value of the original claim. At the moment any reduction in the
claim value would increase the deficit on the Conservation Fund.
4.4 Merger of the parishes – During 2011 the formal process of merging the parishes of St James’ and
St Mary and St John will continue. There are likely to be financial implications as the two parishes
merge and these will require close co-ordination with representatives from St Mary and St John.

Special Thanks
Thank you to all who support the work of the parish with their time, talents and money. Every gift
however large or small is very much appreciated.
The PCC is particularly thankful to all those who contribute to the running of the church community here
at St James’ week by week, either with individual responsibilities or as part of a group, team or
committee. An amazing amount of time and talent is gifted to the church regularly, supporting church
services, organizing social events, administration, pastoral care, practical skills etc.

The PCC wishes to thank everyone who contributes in these many ways.

Signed on behalf of the PCC

Richard Peat
Vice Chairman

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St James’ Church Finchampstead
Trustees’ Annual Report for the year ended 31 December 2010
2. EXAMINER’S REPORT

Financial Statements for the Year Ended

31 December 2010

Independent Examiner’s Report

To the PCC of St. James’ Finchampstead

This report on the Financial Statements of the PCC for the year ended 31 December 2010, which are set out
on pages 9 to 16, is in respect of an examination carried out in accordance with the Church Accounting
Regulations 2006 ('the Regulations') and s.43 of the Charities Act 1993 ('the Act').

Respective responsibilities of the PCC and the examiner

As the members of the PCC you are responsible for the preparation of the Financial Statements; you
consider that the audit requirement of Regulations and section 43(2) of the Act does not apply. It is my
responsibility to issue this report on those Financial Statements in accordance with the terms of Regulations.

Basis of this report

My examination was carried out in accordance with the General Directions given by the Charity Commission
under section 43(7)(b) of the Act and to be found in the Church guidance, 2006 edition. That examination
includes a review of the accounting records kept by the PCC and a comparison of the Financial Statements
with those records. It also includes considering any unusual items or disclosures in the Financial
Statements and seeking explanations from you as trustees concerning any such matters. The procedures
undertaken do not provide all the evidence that would be required in an audit, and consequently I do not
express an audit opinion on the view given by the Financial Statements.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in any material respect the requirements

• to keep accounting records in accordance with section 41 of the Act; and

• to prepare Financial Statements which accord with the accounting records and to comply
with the accounting requirements of the Act and the Regulations have not been met; or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the
Financial Statements to be reached.

Mrs. K. Symons, FCA,

Willow Corner
7, Ackrells Mead,
Little Sandhurst
Berkshire GU47 8JJ

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