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Annual Report 2020 Company Registration Number 236594 Registered Charity Number 249678

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Annual Report 2020 Company Registration Number 236594 Registered Charity Number 249678 The South London Church Fund & Southwark Diocesan Board of Finance Annual Report 2020 Company registration number 236594 Registered charity number 249678 Walking Welcoming Growing Cover image: The South London Food Bank Warehouse, housed in St Margaret the Queen, Streatham Hill. © Charlie Clift Contents Overview Introduction by the Bishop of Southwark 5 Chair of the Diocesan Board of Finance 6 The Diocesan Secretary 7 Our Vision 8 Legal objects 10 Strategic report Strategic report 13 Southwark Vision 2017-25 and Strategic Objectives 14 Progress made towards achieving 2020 objectives 16 Other activities and achievements in the year 18 Related parties 22 Future plans 23 Financial review 25 Principal risks and uncertainties 30 Governance Structure and governance 33 Trustees’ responsibilities 37 Administrative details 38 Financial statements Independent auditor’s report 41 Statement of Financial Activities 44 Income and expenditure account 45 Balance sheet 46 Statement of cash flows 47 Notes to the statement of cash flows 48 Notes to the financial statements 49 Appendix 84 The South London Church Fund & Southwark Diocesan Board of Finance Annual Report 2020 3 Caption Overview Introduction by the Bishop of Southwark As we began 2020 it would have been As we begin our recovery, clergy well- almost impossible for any of us to have being needs to be a priority and I have envisaged the year that we would go on asked The V enerable John Kiddle to take to experience. Since then, in the context the lead on this. of the global pandemic and the hardship and suffering which has ensued, we I want to acknowledge the contribution have been learning how best to reach to the Diocese of three people who out to our communities and how to be retired in 2020. The Venerable Chris church in a different way ― sometimes Skilton retired in February following working in mixed mode and sometimes his time as Archdeacon of Croydon. He simply online as the national restrictions had previously served as Archdeacon have dictated. of Lambeth and Rector of Sanderstead. He is greatly missed but I am grateful to I want to thank all those who have The V enerable Moira Astin, Archdeacon helped our churches to operate of Reigate, who looked after the online, staffed our food banks, and Croydon Area until The V enerable supported our communities in so many Rosemarie Mallett took up the role. The ways, seeking to show God’s love to Revd Canon Stephen Roberts retired in Bishop Christopher our neighbours and many who have August following a distinguished ministry experienced unprecedented isolation. in Southwark as parish priest, Diocesan I also want to express deep appreciation Director of Ordinands, Archdeacon of has further focused our attention to to our hospital chaplains for the work Wandsworth and latterly for five years issues related to the lives of UKME that they have done with patients and as Deputy Diocesan Secretary. Colin members of our Diocese and working staff in this difficult time and, indeed, to Powell (Lay Canon), the Director of to ensure equality, dignity and due all working on the front line in many Education, retired in December, having recognition for all. different capacities. worked an extra term due to the pandemic. We want to thank them all for I especially want to thank our parishes As soon as the Government announced their inspirational service. for their magnificent support through the first lockdown I set up and chaired the Parish Support Fund in 2020 which a Coronavirus Task Group, meeting I am delighted that we have been able is continuing into 2021. This has helped frequently to ensure that we had a to embed the work of the Lay Council, to ensure our financial resilience co-ordinated approach to transmitting developing lay ministries in line with our which of course is instrumental in our advice and information concerning Southwark Vision for partnerships in the commitment to equip and resource the pandemic to our parishes. I am Gospel which enable lay and ordained mission and ministry across the Diocese. grateful to my CTG colleagues (The ministers to flourish in their distinctive Diocesan Secretary, The Director callings. The Readers Board and the SPA Let us be of good courage and put our of Communications, The Dean of Council have now been fully integrated trust in the Lord. Southwark and the Archdeacon of into the Lay Council and I express Lewisham & Greenwich) for their thanks to Gerie Knight for her zeal as work and was glad to award Lancelot Diocesan SPA over the years. Our new Andrewes Medals to them for their Diocesan SPA, Wendy Stephens, is the endeavours. I have also awarded the first Southwark Pastoral Auxiliary to Lancelot Andrewes Medal to others hold my licence. across the Diocese for special acts of caring and service during the pandemic, The Black Lives Matter campaign which has taken a toll on so many. resonated strongly in the Diocese and The South London Church Fund & Southwark Diocesan Board of Finance Annual Report 2020 5 Chair of the Diocesan Board of Finance We are now moving slowly back to founded on the transparency with normal life again but inevitably the which our parish finances are discussed pandemic has had a major impact through our Archdeacons and supported on our parishes and our Diocesan by the Diocesan office team. Besides finances. As the Diocesan Secretary thanking our parishes and our staff, I explains on page 7, we still face do want also to thank the Archdeacons significant challenge as we seek to who work tirelessly with our parishes preserve and build the financial resilience and staff to deliver the PSF which last of our Diocese going forward. year achieved 96.7% of initial pledges, an extraordinary and excellent result. I am pleased to report that we weathered the storm better than we The problems of 2020 have not initially expected, avoiding the heavy undermined the long-term resilience of losses we feared at first. Indeed, had the Diocese thanks to the partnership it not been for the fall in the value of with our parishes. We were also helped Alan Saunders our investments, the Diocese would in our cash flow last year by borrowing have reported a surplus in its overall from the Church Commissioners, a sum parishes. Although uncertainties statement of financial accounts for 2020. that has been fully repaid by April 2021. remain, I am confident that, given our I can, however, report that, for those partnership with the parishes, we will areas under our direct control, we The Diocese does not have substantial withstand setbacks to our finances and returned a small surplus, although the reserves compared to some older maintain resilience for the future. We figure is inflated at the reporting level to Dioceses so we have to manage our are projecting a deficit for the current around £1.4m by the inclusion of gains financial resources with especial care. financial year – reducing over the on the sale of some investments and by That means ensuring that our free subsequent two years ― but hope that, the accounting requirement to include a reserves and our investment portfolio as with last year, the outturn will be remain sufficient. We reviewed both our surplus of almost £1m on the movement better than we forecast and that the PSF cash reserves policy and our investment in pension fund liabilities. will hold up well again. policy in 2019. We were helped in our response to the Finally, I would like to pay tribute to all The latter review has been led by the challenges by a generous sustainability the hard work of our central team, led chair of the Investment sub-Committee, grant of £600,000 from the Church by Ruth Martin, in this most difficult of Commissioners, by a review of staffing Andrew McMurtrie, who steps down years. The y all rose to the task. I would in the Diocesan office which yielded after many years of service with our like to thank especially Anthony Demby, important savings, and by the timely thanks and best wishes. In 2020 before our retiring Finance Director, for the sale of surplus property no longer the pandemic struck, we had already excellent contribution he has made over needed for ministry housing. Above all, started to diversify away from being the years and the invaluable support though, the achievement reflects the principally invested in UK equities he has given Ruth and myself. It is determination of our parishes to commit towards global equities, although that appropriate, too, to thank Haysmacintre to sustaining ministry by maintaining could not prevent a fall in the value of LLP, our departing auditors who have the delivery of the Parish Support Fund our investments. served the Diocese for many years, and (PSF) at remarkably high levels. to welcome Buzzacott LLP as our new As the Diocesan Secretary explains, auditors. We have been one of the Dioceses from change is necessary to continue to whom the National Church has sought implement the Southwark Vision, sustain advice regarding our giving strategy in our parishes and maintain our ministry order to assist others. Ours is of course across deprived as well as wealthier 6 The South London Church Fund & Southwark Diocesan Board of Finance Annual Report 2020 The Diocesan Secretary We will all remember 2020 as an now repaid as I write), successfully extraordinary and troubling year for our sought sustainability grant support from nation, our dioceses, our churches and the National Church, participated in the communities. This is reflected in our Coronavirus Job Retention “furlough” annual report and financial statements, scheme, and also took difficult decisions with the food bank at the church of St about managing expenditure and Margaret, Streatham Hill on our front reducing staffing in the Diocesan office cover, and within the report itself other by making nine posts, including six staff, events and outcomes that attest to and redundant.
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