METHODIST YOUTH ACTIVITIES LIMITED
A company limited by guarantee registration number 1580871 (England & Wales) Registered Charity Number 1028540
Annual Report and Unaudited Financial Statements
For the year ended 31st August 2021
METHODIST YOUTH ACTIVITIES LIMITED
Annual Report and Unaudited Financial Statements
Year ended 31st August 2021
Contents
| Page No | |
|---|---|
| Legal and Administrative | 3 |
| Trustees’ Annual Report | 4-6 |
| Independent Examiner’s Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Accounts | 10-11 |
| The following page does not form part of these accounts | |
| Detailed Income and Expenditure Account | 12 |
2
METHODIST YOUTH ACTIVITIES LIMITED
Legal and Administrative Information
Status
The organisation is a charitable company limited by guarantee, incorporated on 18[th] August 1981 and registered as a charity on 19[th] November 1993.
The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the Trustees (Directors) are elected at the AGM to serve a period of 3 years and shall hold office until the third AGM. At each AGM one third of their number shall retire but are eligible for re-election.
Trustees (Directors)
Rev. Christopher J. Ambler Rev. Malcolm Benton (Chairman from June 2021) John Boyd Robert N Hodges Kevin Lee Rev David Marshall (resigned June 2021) (Chairman until June 2021) Peter Mitchell (Treasurer) F Margaret Thompson Rev Richard W Thompson (Secretary)
| Registered Office | 47A Paris Road, |
|---|---|
| Scholes | |
| Holmfirth | |
| HD9 1SY | |
| Secretary | Rev Richard W Thompson |
| 47A Paris Road, | |
| Scholes | |
| Holmfirth | |
| HD9 1SY | |
| Treasurer | Mr Peter Mitchell |
| 11 Birch Rise | |
| Ashley Heath | |
| TF9 4PZ | |
| Independent Examiner | Mr Peter Lockwood |
| 28 Butt Lane, | |
| Hepworth, | |
| Holmfirth, | |
| HD9 1HT | |
| Bankers | HSBC plc |
| 18 London Street | |
| Norwich | |
| NR2 1LG | |
| Company Number | 1580871 (England & Wales) |
| Charity Number | 1028540 |
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METHODIST YOUTH ACTIVITIES LIMITED
Trustees’ Annual Report for 2021
The Trustees submit their Annual Report and the Independently Examined Financial Statements for the year ended 31[st] August 2021.
Objectives and Activities
The company is a charity and exists to provide for young people to achieve their potential through physical, mental and spiritual growth. To achieve this object, the charity gives grant aid to such young people or projects benefiting such young people. Efforts are made to encourage grant applications by advertising and word of mouth.
Governance
The company is governed by its Trustees (Directors).
Public Benefit
The Company's objectives are:
-
To help young people to develop their physical, mental and spiritual capacities so that they may grow to full maturity as individuals, and their condition of life may be improved.
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And to awaken, or strengthen, in them their desire for a full and active Christian life.
These are achieved by offering grants to individual young people and to organizations and projects working to achieve the same objectives. Within the stated objectives, all young people may benefit. The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in setting the grant making policy for the year.
During the year 2020/21 the Company's activities have benefited 0 (2020:6) individual young people and 16 (2020:9) organisations serving young people. Further information is given under the Review of Activities.
Investment Policy
To maintain and expand the real value of the Charity’s assets in order to provide regular income for grants to support young people. This to be done in such a way as to minimise any conflict between the objectives of the Charity and the investments made on its behalf.
A balanced approach, in capital growth and income terms.
To achieve an investment income of at least £20,000 p.a., with an emphasis on rising in line with inflation.
To minimise investment exposure to any company whose activities are considered likely to increase sickness or poverty. These include businesses involved with tobacco, alcohol, gambling and defence.
To seek exposure to those companies which take seriously their role as corporate citizens. In particular improving environment standards and other activities likely to improve health and reduce poverty.
All investments are with the Central Finance Board of the Methodist Church and monitored by the Board on behalf of the Charity. In July 2017 the trustees adopted a new policy on use of resources. From September 2017 the trustees aim to use resources of up to 5% of the 31 August valuation of total funds. This enables part of any increase in valuation to be utilised to benefit current applicants and may at times require the sale of assets to make a suitable amount of money available.
4
Risk Review
The Trustees have conducted their own review of the major risks to which the charity is exposed and systems have been established to mitigate these risks. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.
Reserves Policy
The fund is unrestricted and is maintained at a level which will enable the charity to meet necessary expenses and make grants to applicants who meet its objects having regard to the volatility of the investment market and the number of grant applicants.
Review of Activities
In a year of further disruption to youth work due to the Covid 19 pandemic there were no applications from individuals and few for projects in the early part of the year and indeed 3 grants were returned unused. Applications from projects increased significantly as resumption of activities began to seem possible. In looking ahead at the need for an expansion of work to help young people recover from the setbacks of the extended lockdowns the trustees decided to make extra funds available for immediate and future grant-making. Accordingly, it was decided in June to realise £50,000 from our investments. £20,000 was realised in July 2021 and a further £30,000 after the start of the new financial year.
The incoming resources for the year of £28,735 are an increase on last year’s figure of £26,632 but include £5,500 in returned grants. Dividends from the Managed Equity Fund, the Managed Fixed Interest Fund, the Property Fund and interest on the Deposit Fund all reduced. Investment income this year totalled £23,138 compared to £26,449 in 2019/20.
Total funds at 31 August 2020 were £856,425 giving the trustees a possible 5% expenditure budget of £42,821 during 2020/21.
As a result of the June revision of policy, resources expended totalled £49,726 (2020 £37,503). There was a net realised deficit of £20,991 compared with a deficit last year of £10,871.
In 2020/21 grants allocated totalled £47,350 (2020 £34,950)
Grants to individual young people:
No awards were made this year as there were no applications. (2020: 6 awards totalling £1,850). The adventure projects we normally support for individuals simply did not take place. One grant of £250 awarded in June 2020 was conditional upon the proposed expedition going ahead in 2021. The expedition was cancelled so the grant was not released. In addition two grants paid in the previous year totalling £500 were returned as the proposed activities had to be cancelled.
Grants to charitable organisations serving young people:
16 awards (2020:9), ranging from £2,000 to £4,000 and totalling £47,350 (2020: £33,350):
| Kings Cross Church Hexthorpe | Full-time family worker | £4,000 |
|---|---|---|
| Charing Cross Methodist Church | Youth music workers | £2,000 |
| Wesley Ebenezer Methodist Church | Pre-teen & youth worker | £3,000 |
| OneSound | Towards fees of musical director | £3,600 |
| Sunderland Samba FC | Youth work using medium of football | £3,000 |
| Thrive Leeds | Core funding of 3 youth workers | £4,000 |
| Market Drayton Methodist Church | Full-time youth worker | £3,000 |
| Crediton Methodist Church | Full-time youth worker | £3,000 |
| Frodsham Methodist Church | Full-time youth worker | £2,500 |
| The Well Methodist Church | Employing 3 young people for 1 yr | £3,000 |
| Haywards Heath Methodist Church | A youth & families worker | £2,000 |
| Bishop Auckland Methodist Church | A youth worship and technology team | £2,250 |
| St John’s Methodist Church, Luton | A youth worker | £3,000 |
| Sandal Methodist Church | A youth & community worker | £3,000 |
| Plymouth Methodist Central Hall | A worker for 11-18s youth ministry | £3,000 |
| Strathmore Road Methodist Church | A youth and families worker | £3,000 |
5
A grant of £5,000 awarded in 2019/20 was returned as the project had closed down. This was used to increase our giving. In the next two years, there are commitments to future grants, depending on acceptable progress reports, totalling £42,000.
Despite the realisation of £20,000 in July 2021 our investments have increased in value by £136,700 compared with a decrease of £68,052 last year. At 31[st] August 2021 our investments were valued at £966,840 (2020: £830,140). Our total funds increased to £992,134 from £856,425 last year.
Trustees’ Responsibilities
Company and charity law requires us, as Trustees, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure for the financial year. In preparing those financial statements, the Trustees should follow best practice and:
-
select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable us to ensure that the financial statements comply with the Companies Act 2006. We are also responsible for safeguarding the assets of the charitable company and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Trustees
Trustees, who are directors for the purposes of company law and trustees for the purposes of charity law, who served during the year and up to the date of this report are set out on page 3.
Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31[st] August 2021 was 11 (31[st] August 2020: 13)
Independent Examiner
Mr Peter Lockwood was appointed as Independent Examiner during the year.
This report has been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities FRS102 issued on 16[th] July 2014, the Charities Act 2011 and in accordance with the special provisions of the Companies Act 2006 relating to small entities. The charitable company constitutes a public benefit entity as defined by FRS102.
Approved by the Trustees and signed on their behalf by
................................... Rev R W Thompson Trustee and Secretary 17 November 2021
6
METHODIST YOUTH ACTIVITIES LIMITED
Independent Examiner’s Report to the members on the accounts of Methodist Youth Activities
I have examined the attached accounts and statements for the year ended 31[st] August 2021, which are set out on pages 8 to 12
Respective Responsibilities of Trustees and Examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
-
examine the accounts under section 145 of the Charities Act;
-
to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Charities Act; and
-
to state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention to indicate that:
-
accounting records have not been kept in accordance with section 386 of the Companies Act 2006;
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the accounts do not accord with such records:
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where accounts are prepared on an accruals basis, whether they fail to comply with relevant accounting requirements under section 396 of the Companies Act 2006, or are not consistent with the Charities SORP (FRS102)
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any matter which the examiner believes should be drawn to the attention of the reader to gain a proper understanding of the accounts.
Signed
Date 15 October 2021
Mr Peter Lockwood 28 Butt Lane, Hepworth, Holmfirth, HD9 1HT
7
METHODIST YOUTH ACTIVITIES LIMITED
STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDING 31 AUGUST 2021 (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)
| Notes INCOME Investment Income Use of printer Returned Grants TOTAL INCOME EXPENDITURE Investment Management Costs Grants 1 Management and Administration 2 TOTAL EXPENDITURE Net Income/Expenditure before gains/losses on investments GAINS/LOSSES ON INVESTMENTS 4 Realised (on disposal) Unrealised (on revaluation) NET GAINS/LOSSES NET INCOME (EXPENDITURE) NET MOVEMENT IN FUNDS FOR THE YEAR TOTAL FUNDS as at 1st September 2020 TOTAL FUNDS as at 31st August 2021 |
Unrestricted 2021 £ 23,138 97 5,500 28,735 1,660 47,350 716 49,726 -20,991 0 156,700 156,700 135,709 135,709 856,425 992,134 |
2020 £ 26,449 183 0 |
|---|---|---|
| 26,632 | ||
| 1,796 34,950 757 |
||
| 37,503 | ||
| -10,871 0 -68,052 |
||
| -68,052 | ||
| -78,923 | ||
| -78,923 935,348 856,425 |
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METHODIST YOUTH ACTIVITIES LIMITED
BALANCE SHEET AS AT 31 AUGUST 2021
| Notes FIXED ASSETS Tangible Assets Investments 4 CURRENT ASSETS CFB Deposit Account Cash with Investment Manager Cash at Bank CREDITORS Amounts falling due within one year 5 NET CURRENT ASSETS/LIABILITIES NET ASSETS UNRESTRICTED FUNDS General Funds |
£ 22,528 2 2,914 |
2021 £ 0 966,840 966,840 25,294 992,134 **992,134 ** |
£ 25,053 - 1,382 |
2020 £ 0 830,140 |
|---|---|---|---|---|
| 830,140 26,285 |
||||
| 25,444 150 |
26,435 150 |
|||
| 856,425 | ||||
| 856,425 |
For the year ending 31st August 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies
The Trustees/Directors responsibilities:
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a) The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476
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b) The Trustees/Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.
Approved by the Trustees/Directors on 17 November 2021
And signed on its behalf by:
Rev R W Thompson Trustee and Secretary
9
METHODIST YOUTH ACTIVITIES LIMITED
Notes on the Financial Accounts for the Year Ended 31[st] August 2021
1. ACCOUNTING POLICES
(a) Basis of Preparation
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with The Charities Act 2011 and the Companies Act 2006.
Methodist Youth Activities Ltd meets the definition of a public benefit entity under FRS 102.
Voluntary income is received by way of subscriptions covering up to 5 years and donations and is included in full in the Statement of Financial Activities when received.
Resources expended are recognised in the period in which they are incurred. Resources expended include attributed VAT, which cannot be reclaimed. Grants are included in the Statement of Financial Activities when they are paid.
Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life, which in all cases is estimated at 5 years. Items of equipment are capitalised where the purchase price exceeds £500.
Investments held as fixed assets are revalued at the Balance Sheet date and the gain or loss taken to the Statement of Financial Activities.
There are no restricted funds. All the incoming resources are generated for the objects of the charity without specific purpose and are available as general funds.
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| 2. | MANAGEMENT & ADMINISTRATION | ||
| Committee Costs | 100 | 330 | |
| Administration | 466 | 277 | |
| Independent Examiner | 150 | 150 | |
| _____ | _____ | ||
| 716 | 757 | ||
| ==== | ==== | ||
| Travel costs reimbursed to 0 (2020: 4) of the Trustees | |||
| and included in above total | 0 | 208 | |
| ==== | ==== |
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3. TAXATION
The company is exempt from corporation tax on its charitable activities.
4. INVESTMENTS
The investments are managed by the Central Finance Board of the Methodist Church and are split as follows: the Managed Equity Fund (71%); the Managed Fixed Investment Fund (10%) and the Property Fund (19%).
5.
| Property Fund (19%). | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Investments at 31stAugust 2020 | 830,140 | 898,192 |
| Profit/Loss on Investments from changes in value | 136,700 | -68,052 |
| _ | _ | |
| At 31stAugust 2021 | 966,840 | 830,140 |
| ====== | ====== | |
| Historical cost | 715,008 | 715,008 |
| CREDITORS: Amounts falling due within one year | ||
| Other creditors and accruals | 150 | 650 |
| ==== | ==== |
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METHODIST YOUTH ACTIVITIES LIMITED
DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDING 31 AUGUST 2021
| £ INCOME Interest receivable Dividends received Returned Grants Printing EXPENDITURE Grants Given 47,350 Investment Management Costs 1,660 Administration 418 Equipment - Committee Costs 100 Independent Examiner 150 Annual Return & Data Protection 48 NET SURPLUS/DEFICIT FOR THE YEAR GAINS/LOSSES ON INVESTMENT ASSETS Realised (on disposal) Unrealised (on revaluation) NET SURPLUS/DEFICIT FOR THE YEAR |
2021 £ £ 32 23,106 5,500 97 28,735 34,950 1,796 229 - 330 150 48 49,726 -20,991 0 156,700 135,709 |
2020 £ 204 26,245 - 183 |
|---|---|---|
| 26,632 37,503 |
||
| -10,871 0 -68,052 |
||
| -78,923 |
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