REGISTERED CHARITY NUMBER: 1059512
CARNFORTH FREE METHODIST CHURCH
REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Scott & Wilkinson Dalton House
9 Dalton Square LANCASTER LA1 1WD
CARNFORTH FREE METHODIST CHURCH
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | ||
| Notes to the Financial Statements | 7 | to | 14 |
CARNFORTH FREE METHODIST CHURCH
REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2022
| Trustees | Rev C Murgu |
|---|---|
| Mr J Carter | |
| Mr J T Wightman | |
| Mr A Towers (resigned 29/9/2022) | |
| Mr T Taylor (resigned 29/9/2022) | |
| Mr I Ellershaw | |
| Mrs C Duncan | |
| Mr D Kitchen | |
| Mr P Burt | |
| Mrs R Burt | |
| Mr K Smith (resigned 29/9/2022) | |
| Mrs D M Fralick | |
| Mr M White (appointed 29/9/2022) | |
| Mr I Rothwell (appointed 29/9/2022) | |
| Mr J Davies (appointed 29/9/2022) | |
| Mr P Hayes (appointed 29/9/2022) | |
| Principal address | The Manse |
| 33 Dunkirk Avenue | |
| CARNFORTH | |
| LA5 9AP | |
| Registered charity number | 1059512 |
| Independent examiner | Scott & Wilkinson |
| Dalton House | |
| 9 Dalton Square | |
| LANCASTER | |
| LA1 1WD | |
| Bankers | Barclays Bank Plc |
| 3 Market Street | |
| CARNFORTH | |
| LA5 9JX |
Page 1
CARNFORTH FREE METHODIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Objectives and activities
The object of the Carnforth Free Methodist Church is the furtherance of the religious and other charitable works of the Free Methodist Church of North America in accordance with the doctrines, disciplines and usages of that Church for the time being as set forth in the book of discipline. The Church benefits from many voluntary hours and unclaimed out of pocket expenses, contributed by a large number of people. It would be impossible to place a value on these gifts in kind, for which the Trustees are extremely grateful. The Trustees confirm that they have referred to the guidance contained in the Charity Commission general guidance on public benefit when reviewing the charity's aims and objectives.
Achievement and performance
During the year further income was received by the Charity via Gift Aid resulting in a total of £30,915 tax being recovered from HM Revenue & Customs.
The Trustees are aware that the Charity has an obligation to operate for an identifiable and public benefit. When planning activities Trustees consider the Commission guidance on public benefit; in particular the specific guidance on charities for the advancement of religion.
Since the Covid pandemic, the Church has returned to in-person meetings predominantly, albeit virtually using Zoom and YouTube to compliment face to face meetings, particularly for those who are vulnerable or elderly. During the year, the Church continued to support humanitarian work overseas, in particular, where two families continue to serve overseas in 2022. The Church has continued with work in the UK through schools work via sports outreach and the Church has continued to give compassionate gifts and help where needed in the local community.
During 2022, our Community Pastor, Ian Ellershaw has settled into his employment for the Church, complementing the work of our Lead Pastor, Cristi Murgu. In the meantime, Carol-Ann Baker has continued to fulfil a part-time role to provide administrative support to the Lead Pastor, Community Pastor and wider Church.
The Pastors have been involved in visiting members of the Church and people in the local community who have had particular needs and may have asked the Church for assistance. In addition, the Church assisted community programmes have continued in person, such as divorce and bereavement support. During 2022, the Church continued with a food bank and has liaised with local health and other agencies in identifying and then supporting individuals and families in the communities.
As for assets, the Church manse at Dunkirk Avenue has been maintained. In 2016, the Church purchased a plot of land for further development as a Church Conference and Resource Centre. We were pleased to open this in March 2022 and already this has been used to support the Charities objectives and hosting the community support ventures. During 2022, further funds were raised meaning around 90% of the cost has been found leaving the remaining 10% outstanding on a mixture of interest free loans and long term mortgage finance. During 2022, the Trustees considered the best way to exit the Hunter Street building which as hoped was concluded in 2022, by way of a sale, subjected to due diligence and valuations. Insurance cover on all properties has been reviewed with the recommendations of the RICS and in consultation with the Church's Insurance Brokers
There were minor changes to the Charity's policies during 2022. Further work was undertaken in respect of reviewing the Churches child protection (safe guarding) policy. The Health & Safety Policy has been reviewed with ongoing risk assessments drawn up, particularly focus being given to Covid and the return to in person events. The Churches GDPR policy and its charitable data protection management processes are in course of ongoing review.
Page 2
CARNFORTH FREE METHODIST CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
Financial review
The charity does not have a formal reserves policy however it is the policy of the charity to maintain balances at a level equivalent to approximately two months expenditure to cover church running costs, should income fall. There have been no occasions when credit balances have fallen beneath this level, and no need for the matter to be escalated by the Trustees to the members of the Church for their consideration. Free reserves as at the year end were £73,043. No funds are materially in deficit.
Future plans
The charity plans to continue with its core objectives within its immediate vicinity and the surrounding regions, in addition to which it continues to explore making more use of its new premises to support its charitable objectives.
Structure, governance and management
The main governing document of the Charity is set out in the Declaration of Trust dated 30 October 1996 as amended by scheme dated 9 March 2000. New Trustees are appointed on an annual basis at the Annual General Meeting and meet regularly to review management, financial and operational risk matters.
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
........................................................................
Mr J Carter - Trustee
Page 3
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CARNFORTH FREE METHODIST CHURCH
Independent examiner's report to the trustees of Carnforth Free Methodist Church
I report to the charity trustees on my examination of the accounts of Carnforth Free Methodist Church (the Trust) for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
T M Preece FCCA
Scott & Wilkinson Dalton House 9 Dalton Square LANCASTER LA1 1WD
Date: .............................................
Page 4
CARNFORTH FREE METHODIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| Notes Income and endowments from Donations and legacies Charitable activities Church activities Investment income 2 Other income Total Expenditure on Charitable activities Church activities Other Total NET INCOME Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted fund £ 156,823 658 41 52,179 209,701 136,589 3,444 140,033 69,668 440,118 509,786 |
Restricted funds £ 114,334 9,653 - - 123,987 12,824 - 12,824 111,163 891,533 1,002,696 |
2022 Total funds £ 271,157 10,311 41 52,179 333,688 149,413 3,444 152,857 180,831 1,331,651 1,512,482 |
2021 Total funds £ 296,981 3,380 3 - |
|---|---|---|---|---|
| 300,364 | ||||
| 119,566 31 |
||||
| 119,597 | ||||
| 180,767 1,150,884 |
||||
| 1,331,651 |
The notes form part of these financial statements
Page 5
CARNFORTH FREE METHODIST CHURCH
BALANCE SHEET 31 DECEMBER 2022
| Notes Fixed assets Tangible assets 7 Investments 8 Current assets Debtors 9 Cash at bank Creditors Amounts falling due within one year 10 Net current assets Total assets less current liabilities Creditors Amounts falling due after more than one year 11 NET ASSETS Funds 14 Unrestricted funds Restricted funds Total funds |
Unrestricted fund £ 126,746 - 126,746 427,311 167,773 595,084 (164,068) 431,016 557,762 (47,976) 509,786 |
Restricted funds £ - 1 1 1,002,458 6,387 1,008,845 (6,150) 1,002,695 1,002,696 - 1,002,696 |
2022 Total funds £ 126,746 1 126,747 1,429,769 174,160 1,603,929 (170,218) 1,433,711 1,560,458 (47,976) 1,512,482 509,786 1,002,696 1,512,482 |
2021 Total funds £ 168,288 1 168,289 1,254,034 57,701 1,311,735 (8,873) 1,302,862 1,471,151 (139,500) 1,331,651 440,118 891,533 1,331,651 |
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. Mr J Carter - Trustee
............................................. Mr J T Wightman - Trustee
The notes form part of these financial statements
Page 6
CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. Accounting policies
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Furniture and equipment - 15% Reducing balance Computer equipment - 25% on cost
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Going concern
There are no material uncertainties regarding the charity's ability to continue as a going concern.
Page 7
CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
| 2. Investment income Deposit account interest 3. Grants payable Church activities The total grants paid to institutions during the year was as follows: Education for Life WEC Sportsreach Royal British Legion NISCU United Christian Broadcasters Lancaster and Morecambe Debt Centre The Way Church Our Daily Bread Ministries Lancaster Baptist Church Heart Church Morecambe Capernwray Hall Ukraine Appeal The total grants paid to individuals during the year was as follows: Individuals |
2022 £ 41 2022 £ 16,880 2022 £ 1,200 - 600 - 600 240 1,640 200 250 150 500 1,000 650 7,030 2022 £ 9,850 |
2021 £ 3 2021 £ 16,533 |
|---|---|---|
| 2021 £ 1,200 2,000 600 20 600 240 - 200 50 - - - - 4,910 2021 £ 11,623 |
4. Trustees' remuneration and benefits
Both the Lead Pastor and Community Pastor (who are also Trustees) received remuneration for ministerial work done during the year. Rev C Murgu received gross pay of £27,902 (2021 - £27,113) and pension contributions of £1,980 (2021 - £1,900). I Ellershaw received gross pay of £30,549 (2021 - £29,899) and pension contributions of £1,980 (2021 - £1,980).
The total donations made by the Trustees to the charity during the year amounted to £43,660 (2021 - £34,805).
Page 8
CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
4. Trustees' remuneration and benefits - continued
Trustees' expenses
The Trustees were reimbursed expenses of £811 (2021 - £237).
5. Staff costs
The average monthly number of employees during the year was as follows:
6.
| Charitable activities No employees received emoluments in excess of £60,000. Comparatives for the statement of financial activities Income and endowments from Donations and legacies Charitable activities Church activities Investment income Total Expenditure on Charitable activities Church activities Other Total NET INCOME Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted fund £ 144,377 - 3 144,380 113,477 31 113,508 30,872 409,246 440,118 |
2022 3 Restricted funds £ 152,604 3,380 - 155,984 6,089 - 6,089 149,895 741,638 891,533 |
2021 3 Total funds £ 296,981 3,380 3 |
||
|---|---|---|---|---|---|
| 300,364 | |||||
| 119,566 31 |
|||||
| 119,597 | |||||
| 180,767 1,150,884 |
|||||
| 1,331,651 |
Page 9
CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
7. Tangible fixed assets
| Cost At 1 January 2022 Additions Disposals At 31 December 2022 Depreciation At 1 January 2022 Charge for year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 Fixed asset investments Market value At 1 January 2022 and 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 There were no investment assets outside the UK. Debtors: amounts falling due within one year Other debtors |
Furniture Freehold and Computer property equipment equipment Totals £ £ £ £ 164,260 26,385 1,339 191,984 2,320 2,550 1,364 6,234 (46,760) - - (46,760) 119,820 28,935 2,703 151,458 - 23,361 335 23,696 - 339 677 1,016 - 23,700 1,012 24,712 119,820 5,235 1,691 126,746 164,260 3,024 1,004 168,288 Shares in group undertakings £ 1 1 1 2022 2021 £ £ 1,429,769 1,254,034 |
|---|---|
8. Fixed asset investments
9. Debtors: amounts falling due within one year
Page 10
CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
10. Creditors: amounts falling due within one year
| Bank loans and overdrafts (see note 12) Trade creditors Taxation and social security Other creditors 11. Creditors: amounts falling due after more than one year Bank loans (see note 12) Other creditors |
2022 £ 1,049 2,106 915 166,148 170,218 2022 £ 47,976 - 47,976 |
2021 £ 531 - 999 7,343 |
|---|---|---|
| 8,873 | ||
| 2021 £ 9,500 130,000 |
||
| 139,500 |
12. Loans
The bank loan was advanced in December 2021 and is repayable in installments over twenty years.
13. Secured debts
The following secured debts are included within creditors:
| Bank loans 14. Movement in funds Unrestricted funds General fund Restricted funds Gifts for specific purposes Building Food bank TOTAL FUNDS |
At 1/1/22 £ 440,118 - 891,310 223 891,533 1,331,651 |
2022 £ 49,025 Net movement in funds £ 69,668 20 111,129 14 111,163 180,831 |
2021 £ 10,031 At 31/12/22 £ 509,786 20 1,002,439 237 |
2021 £ 10,031 |
|---|---|---|---|---|
| 1,002,696 | ||||
| 1,512,482 |
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CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
14. Movement in funds - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Gifts for specific purposes Building Soccer school Food bank Men's ministry TOTAL FUNDS |
Incoming resources £ 209,701 3,105 111,129 4,765 100 4,888 123,987 333,688 |
Resources Movement expended in funds £ £ (140,033) 69,668 (3,085) 20 - 111,129 (4,765) - (86) 14 (4,888) - (12,824) 111,163 (152,857) 180,831 |
Resources Movement expended in funds £ £ (140,033) 69,668 (3,085) 20 - 111,129 (4,765) - (86) 14 (4,888) - (12,824) 111,163 (152,857) 180,831 |
|---|---|---|---|
| 111,163 | |||
| 180,831 |
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Building Food bank TOTAL FUNDS |
At 1/1/21 £ 409,246 741,638 - 741,638 1,150,884 |
Net movement in funds £ 30,872 149,672 223 149,895 180,767 |
At 31/12/21 £ 440,118 891,310 223 |
|---|---|---|---|
| 891,533 | |||
| 1,331,651 |
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CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
14. Movement in funds - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Gifts for specific purposes Building Soccer school Food bank Lyrics and Laughter TOTAL FUNDS |
Incoming resources £ 144,380 2,172 149,672 3,380 310 450 155,984 300,364 |
Resources Movement expended in funds £ £ (113,508) 30,872 (2,172) - - 149,672 (3,380) - (87) 223 (450) - (6,089) 149,895 (119,597) 180,767 |
Resources Movement expended in funds £ £ (113,508) 30,872 (2,172) - - 149,672 (3,380) - (87) 223 (450) - (6,089) 149,895 (119,597) 180,767 |
|---|---|---|---|
| 149,895 | |||
| 180,767 |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Restricted funds Gifts for specific purposes Building Food bank TOTAL FUNDS |
At 1/1/21 £ 409,246 - 741,638 - 741,638 1,150,884 |
Net movement in funds £ 100,540 20 260,801 237 261,058 361,598 |
At 31/12/22 £ 509,786 20 1,002,439 237 |
|---|---|---|---|
| 1,002,696 | |||
| 1,512,482 |
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CARNFORTH FREE METHODIST CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022
14. Movement in funds - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Gifts for specific purposes Building Soccer school Food bank Men's ministry Lyrics and Laughter TOTAL FUNDS |
Incoming resources £ 354,081 5,277 260,801 8,145 410 4,888 450 279,971 634,052 |
Resources Movement expended in funds £ £ (253,541) 100,540 (5,257) 20 - 260,801 (8,145) - (173) 237 (4,888) - (450) - (18,913) 261,058 (272,454) 361,598 |
|---|---|---|
15. Related party disclosures
The charity provided a loan to CFMC Development Company Limited, a company of which the charity is the sole shareholder, to enable the company to undertake a building development. At the balance sheet date the amount due from CFMC Development Company Limited was £1,420,432 (2021 - £1,244,687).
Page 14