REGISTERED CIL4RITY NUMBER: 1059512 CARNFORTH FREE METHODIST CHURCH REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Scott & Wilkinson Dalton House 9 Dalton Square LANCASTER LAI IWD
CARNFORTH FRFE METHODIST CHURCH CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Pydge Reference and Admlnistrative Detalls Report of the Trustees Independent Examinerls Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements 7 to 14 Detailed Statement of Financial Aclivities 15 to 16
CARNFORTH FREE MFTHODIST CHURCH REFERENCE ILYD IiDMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees Rev C Murgu Mr J Carter Mr J T Wightman (resigned 281912023) Mr I Ellershaw Mrs C Duncan Mr D Kitchen MrPBurt Mrs R Burt (resigned 281912023) MTS D M bTaliLk (Tc%ignL"d 281912023) MT M White Mr I Rothwell Mr J Davies Mr P Hayes MT P Lumb (appointed 281912023) Rev M Surrey (appointed 281912023) Mrs S Wright (appoinfrd 281912023) Principal address The Manse 33 Dunkirk Avenue CARNFORTH LA5 9AP Registered charity number 1059512 Independent exaffliner Scott & Wilkinson Dalton House 9 Dalton Square LANCASTER LAI IWD Bankers Barclays Bank Pl 3 Market Street CARNFORTH LA5 9JX Page I
CARNFORTH FREE METHODIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present their report with the fjnancial statements of the charity for the year ended 31 Dec¢mber 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recotnlnended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard appli¢abl¢ in the UK and Republic of Ereland (FRS 102) (effective l January 2019). Objectlves and activities The object of the Camforth Free Methodist Church is the furtherance of the religious and other charitable works of ihe Free Methodist Church of North America in accordance with the do¢trin¢s. disciplines and LLsages 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 plac¢ a valu¢ on th¢se gifts in kind, for which the TteeS are extrem¢ly grateful. The Trnstees confinn that they have refeed to the guidance contained in the Charity Commission general guidance on public benefit when reviewing the charity's aims and obj¢ctiv¢s. Achievement and perforniance During the year further income was received by the Charity via Gift Aid resulting in a total of £30,881 tax being recovered from HM Revenue & Customs. The Trust¢¢s are aware that the Charity has an obligation to operate for an identifiable and public benefit. When planning activitt'es Trnstees consider the Commission guidance on public b¢n¢fit' in particular the specific guidance on charities for the advancement of religion. During 2023, the Church has continued to vneet in-person m¢¢tings predominantly. albeit virtually using Zoom and YouTube to compliment face to face meetings> particularly for thos¢ who are vulnerable or eldeTly. During the year, the Church continued lo support humanitarian work overseas, in particular, where two families continue to s¢rve overseas in 2023. The Church has continued with work in the UK through schools work sports outreach and the Church has conlinued to give conipassionate gifts and help where needed in the local community. During 2023. our Lead Pastor, Cristi Murgu has continued to lead the work of the Church in the local Comrnunity and surrounding areas, supported by OUT Community Pastor, Ian Ellershaw. In the meantime, Carol-Ann Baker has continued to fulfil a part-time role to PTovide 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 comrnunity programmes have continued in person, such as divorce and bereavement support. During 2023, the Church has continued io liaise with local agencies in identifying and then supporting individuals and families in the communities. As for assets, the Church manse at Dunkirk Avenue has been maintsined. In 2016, the ChuTch purchased a plot of land for rther development as & Church Conference and Resource Centre which we were pleased to open in March 2022. Since this time, the Centre has already been used to support the Charities objectives and hosting the community SUPPOrt ventures. During 2023, further funds were raised meaning that the Tntr¢S agr¢¢d in December 2023 to make aryangem¢nts to repay all outstanding loans relating to the £linillion plus build programine which will be transacted in early 2024. Insurance cover on all properties has been reviewed with the recommendations of the RICS and in consultation with the Church's Insurance BTokers. There were minor changes to the Charity's policies during 2023. Further work was und¢rtakcn in r¢sp¢ct 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 new ministries and events run from the Centre. The Churches GDPR policy and its charitable data protection manageinent processes are still in course of ongoing review but progress h&8 been rnade. Page 2
CARNFORTH FREE METHODIST CHURCH REPORT OF THE TRUSTEES FOR THE YEAR EF4DED 31 DECEMBER 2023 Financial review The charity doL5 nut h¢ive il forTll¢il Teserves policy however it is the policy of the charity to Tnaintain balances at a level equival¢nt to approximdtely two months exp¢nditure to cover church wnning costs, should incorne tall. There have been no occasions when credit balances have fallen beneath this level, and no need for the lltter to be escalated by the Trustees to the members of the Church for their consideration. Free reserv¢s as at the year end wer¢ £61,705 (2022 £73,043). No funds are in deficit. Future plans The charity plans to continue with its core objectives within its immediate vicinity and the SUOUnd]ng regions, in addition to which it continues to explore nthking more use of its new premises to support its clwitable objectives. Structure? governance and managernent The main governing document of the Charity is set out in the DecIatIon of Trust dated 30 October 1996 as amended by scheme dated 9 March 2000. N¢w Trustees are appointed on an annual basis at the Annual General Meeting and meet regularly to review mantigc'Tnent, financiiil and OPQTdtional risk Tnatters. Approved by order of the board of trnstees on .... 9 / 7./.z.¥..,.... . and signed on its behalf by: Mr J Carte/_ Trustee Page 3
INDEPENDENT EXAMThER'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 tnjstees on my examination of the accounts of Carnforth Free Methodist Church (the Trust) for the yeaT ended 31 December 2023. Responsibilities And basis of report As the charity trustees of the Trust you are responsible for the preparatlOD of the accounts in accordance with the requirements of the ChaTities Act 2011 ('the Act,). I r¢port in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in caTrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act. Independent examiner'5 Statement I liave completed my examination. I confirni that Tho material matters have come to my attention in connection WAth the examination giving me cause to believe that in any material respect: accounting records wer¢ 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 accourAts do not comply with the applicable requiretnents concerning the forn] and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any Tequirement that the accounts give a true and fair view which is not a matteT considered as part of an independent exarnination. I have no concerns and have come across no other matters in cotmection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accoullts to be reached. T M Pre¢ce FCCA Scott & Wilkinson Dalton House 9 Dalton Square LANCASTER LAI IWD Date.. Page 4
CARNFORTH FREE METHODIST CHURCH STATEMENT OF FINANCIAL ACTIVITIES FOR 'fHL YEAR ENDED 31 DECEMBLR 2023 2023 Total funds 2022 Total funds Unrestricted lund Restrlcted runds Notes Inrome and endowment5 from Donations and legacies 168,167 49,984 218,151 271,157 Charitable activities Church activities 6,959 6,959 10,311 Investment incon Other income 233 1,040 233 1,040 41 52.179 Total 169,440 56,943 226.383 333,688 Expenditure on Charitable activities Church activities 137,902 8,977 146,879 149,413 Other 2,999 2,999 Total 140,901 8,977 149,878 152,857 NET INCOME 28,539 47,966 76,505 180,831 Reconciliation of funds Total funds brought forward 509,786 1,002,696 1,512,482 1,331,651 Total funds carried forward 538,325 1,050,662 1,588,987 1,512,482 The notes form part of these financial statements Page 5
CARNFORTH FREE METHODIST CHURCH BALANCE SHEET 31 DECEMBER 2023 2023 Total funds 2022 Total funds Unrestrlcted fund Restricted funds Notes Fixed assets T¢tnLFible assets Inveslm¢nts 127,538 127,538 126,746 127.538 127,539 126,747 Current a55ets Debtors Cash at bank 392,207 58,676 1,050,496 165 1,442,703 58,841 1,429,769 174,160 450,883 1,050,661 1,501,544 1,603,929 Creditors Amounts falling due within one year io (3.434) (3,434) (170,218) Net current assets 447,449 1,050,661 1,498,110 1,433,711 Total assets less current liabilities 574,987 1,050,662 1,625.649 1,560.458 Creditors Atnounts falling due after tnoTe than one year (36,662) (36,662) (47,976) IYET ASSETS 538,325 1,050,662 1,588,987 1,512,482 Funds Unrestricted fun(Ls Restricted funds 14 538,325 1,050,662 509,786 1,002,696 Total funds 1,588,987 1,512,482 The financial statements were approved by the Board of Trustees and authorised for issue ..I.8..1..7..1.1.l................. and were signed on its behalf by: on Mr J Carter - Trust¢¢ Mr P Burt- T¢ The notes fonn part of these financial statements Page 6
CARI¥JFORTH FREE METHODIST CHURCH NOTES TO THE FINANCL4L STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Basls of preparing the financial statements The financial statrments 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 th¢ UK and Republic of Ireland (FRS 102) (effective l 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 nds, it is probable that the income will b¢ r¢c¢iv¢d and the amount can be measured reliably. Expenditure Liabilities aTe Tecognised a5 expenditure as soon as there is a legal or constructive obligation committing the harity to that expenditure, it is probable that a transfer of economic benefits will be Tequired in settlement and the amount of the obligation can be measured reliably. Expenditte is accounted for on an accTuals 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 assels Depreciation is provided at the following annual rates in order to Write off each asset oveT its estimated useful life. Furniture and equipment Computer equipment 150/0 Reducing balance 250/0 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 tStees. Restrict¢d funds can only be used for particular restricted PUTposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purp05¢8. Further explanation of the nature and purpose of each thnd is incILed in the notes to the financial statements. Pension costs and other post-retirement benefits The charity operates a defined contribution penston scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activitics in the period to which they relat¢. 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 - contlnued FOR THE YEAR ENDLD 31 DECLMBER 2023 Investment income 2023 2022 Deposit account interest 233 41 Grants payable 2023 2022 Church activities 14,618 16,880 The total grants paid to institutions during the year was as follows: 2023 2022 Education for Life 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 More¢ambe Capemwray Hall Ukraine Appeal United S¢rvants 600 600 40 700 40 1,200 600 600 240 1,640 200 250 150 500 1,000 650 2,091 7,030 The total grants paid to individuals during the year was as follows: 2023 2022 Individuals 11,035 9,850 Trustees remuneration and benefit5 Both th¢ Lead Pastor and Colljmunity Pastor (who are also Trustees) receivcd rcmun¢Tiltion foi ministetial work done during the year. Rev C Murgu received gross pay of £30,141 (2022 - £27,902) and pension contributions of £2.070 (2022 £1,980). I Ellershaw received gross pay of £32,526 (2022 £30,549) and pension contributions of £2,070 (2022 - £1,980). The total donations made by the Trustees to the charity during the year amount¢d to £42,260 (2022 - £43,660). Page 8
CARNFORTH FREE METHODIST CHURCH NOTES TO THE FINknNCL4L STATEMENTS - conlinued FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees, remuneration and benefits - continued Trustees, expenses The Trustees were rcimbursed ¢xpenscs of £282 (2022 - £811). Staff costs The average monthly number of employees during the year was as follows., 2023 2022 Charitable activities No employees rec¢iv¢d emoluments in excess of £60.000. Comparatives for the statement of financial activities Unrestricted fund Restricted funds Total funds Income and endowments from Donations and legacies 156,823 114,334 271,157 Charitable activities Church aclivitRes 658 9,653 10,311 IDV&Sttr]ent income Othei income 41 52,179 41 52,179 Total 209,70 I 123,987 333,688 Expenditure on Charitgble activities Church activities 136,589 12,824 149.413 Other 3,444 Total 140,033 12,824 152,857 NET INCOME 69,668 111,163 180,831 Reconciliation of funds Total funds brought forward 440,118 891,533 1,331,651 Total funds carried fornard 509.786 1,002,696 1,512,482 Page 9
CARNFORTH FREE METHODIST CHURCH NOTFS TO THF FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023 Tangible red assets Furniture and equlpment Freehold property Computer equipment Totals C05t At l January 2023 Additions 119,820 28,935 2,703 2,906 151,458 2,906 At 31 December 2023 119,820 28,935 5,609 154,364 Depreciation At l January 2023 Charge for year 23,700 1.047 1,012 1,067 24,712 2,114 At 31 December 2023 24,747 2,079 26.826 Iyet book value At 31 December 2023 I l9,820 4,188 3,530 127,538 At 31 December 2022 119.820 5.235 1,691 126,746 Fixed asset investments Shares in group undertakings Market value Ai l January 2023 and 31 D¢¢ember 2023 Net book value Al 31 December 2023 At 31 December 2022 There were no investment assets outside the UK. Debtors: amounts falling due withill one year 2023 2022 Other debtors 1,442.703 1,429,769 Page 10
CARNFORTH FREE METHODIST CHURCH NOTES TO THE FINANCL4L STATEMENTS - Continued FOR THE YEAIi ENDED 31 DECEMBER 2023 io. Creditors: amounts falling due within one year 2023 2022 Bank loans and overdrafts (see note 12) Trade creditors Taxation and social security Other creditors 1,107 1,342 985 1,049 2,104 915 166,150 3,434 170,218 ii. Creditors: amounts falling due after more than one year 2023 2022 Bank loans (see nofr 12) 36,662 47,976 12. Li>ans 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: 2023 2022 Bank loans 37,769 49,025 14. Movement in funds Net movement in funds At 31112123 At 111123 Unrestricted funds General fund 509,786 28,539 538,325 Restricted funds Gifts for specific purposes Building Food batLk Ladies ministry 20 1,002,439 237 (5) 48,043 (97) 25 15 1,050,482 140 25 1,002,696 47,966 1,050,662 TOTAL FUNDS 1,512,482 76,505 1,588,987 Page 11
CARNFORTH FREE METHODIST CHURCH NOTES TO THE FINANcL STATEMENTS - eontinued FOR I"HE YEAR LIYDLD 31 DECEMBER 2023 14. Movement in funds - continued Net movement in funds, included in the above are as follows: Ineoming r&wurces Resources expended Movement in funds Unrestrieted funds General fund 169.440 (140,901) 28,539 Restricted fund5 Gifts for specific purposes Building Soccer school Food bank LÉidics Tninistry 1,940 48,043 6,814 (1,945) (5) 48,043 (6,814) (98) (120) (97) 25 145 56,943 (8,977) 47,966 TOTAL FUNDS 226,383 (149,878) 76,505 Comparatives for movement in funds Net movement in funds At 31112122 At 111122 Unrestricted funds General fimd 440,118 69,668 509,786 R&8tricted funds Gifts t.or specific Purposes Building Food bank 20 111,129 14 20 1,002,439 237 891,310 223 891,533 111,163 1,002,696 TOTAL FUNDS 1,331,651 180,831 1,512,482 Page 12
CARNFORTH FREE METHODIST CHURCH NOTF.S TO THE FINANCIAL .8TATEMENT.8 - continued FOR THE YEAR ENDED 31 DECEMBER 2023 14. Movement in funds - continued Comparative net movement in funds, included in the above are &s follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fia 209,701 (140,033) 69,668 Restricted funds Gifts for specific PUTposes Building Soccer school Food bank Men's ministry 3,105 111,129 4,765 loo 4,888 (3,085) 20 111,129 (4,765) (86) (4,888) 14 123,987 (12,824) 111,163 TOTAL FUNDS 333,688 (152,857) 180,831 A current year 12 months and prior year 12 months combined position is as follows.. Net movement in funds At 31112123 At 111122 Unrestrieted funds General fund 440,118 98,207 538,325 Restricted funds Gifts for specific purposes BuildiTJg Food bank Ladies ministy 15 159,172 (83) 25 15 1,050,482 140 25 891,310 223 891.533 159,129 1,050,662 TOTAL FUNDS 1,331,651 257,336 1,588,987 Page 13
CARNFORTH FREE METHODIST CHURCH NOTES TO THE FINANCIAL STATEMENTS - eontinued FOR THE YEAR LNDLD 31 DECEMBER 2023 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 &% follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 379,141 (280,934) 98,207 Restricted funds Gifts for specific purposes Building Soccer school Food bank Men's mtnisty Ladies ministry 5,045 159,172 11.579 ioi 4,888 145 (5,030) 15 159,172 (11,579) (184) (4,888) {12U) (83) 25 180,930 {21,801) 159,129 TOTAL FUNDS 560,071 (302,735) 257,336 15. Related party disclosures The charity provided a loall to CFMC Development Company Limited, a company of which the charity is the s(IIL" %hÉiFLholdLT, to enable the conu)any to undertake a building development. At the balance sheet ddte the amount due from CFMC Development Company Limited was £1,436,240 (2022 - £1,420,432). Page 14
CARNFORTH FREE METHODIST CHURCH DETAILED STATEMENT OF Fll¥ANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 IneoD]e and endowments Donations and legacles Gifts Gift aid Grants Hire of centre 185,885 30,881 213,874 30,915 25,600 768 1,385 218,151 271,157 Investment income Deposit account interest 233 41 Charltable activities Soccer school Mens ministry Ladies ministry 6.814 5,423 4,888 145 6,959 10.311 Other income Other income Gain on sale of tangible fixed assets 1,040 52,179 1,040 52,179 Total ineoming resources 226,383 333,688 Expenditure Charitable activiti Wages Social security Pensions Telephone Postage and stationery Computer costs Soccer school Mens Ministry Ladies ministry Lyrics and Laughter expenses Children and Youth expenses Propety rental Manse expenses Church expenses Free Methodist Church levy C(Irried forward 68,483 1,126 4,140 1,528 959 419 10,853 200 120 43 1,752 9,250 2,352 12.364 6,492 120,081 63,574 1,372 3,960 1,604 121 460 7,279 5,300 loo 240 949 10,277 2,676 15,335 6,456 119,703 This page does not form part of the statutory financial slatements Page 15
CARNFORTH FREE METHODIST CHURCH DETAILED STATEMENT OF FINANCLIL ACTIVITIES FOR THE YEAR EIYDED 31 DECEMBER 2023 2023 2022 CharÉtable activities Brought fonvard Travel expenses Visiling speaker expenses Subscriptions Depreciation of ftureS and fittings Computer equipment Grants to institutions Grants to individuals 120,081 438 850 1,953 I,047 I,067 3,583 11,035 119,703 1.048 550 1,819 339 676 7,030 9,850 140,054 141,015 Other Bank loan interest 2,999 3,444 Support costs Manggement Insurance 4,046 4,968 Finallce Bank charges 589 981 Governance cost5 Legal and professional f¢es Accountancy fees 734 1,715 2,190 2,190 2,449 Total resources expended 149,878 152,857 Net income 76,505 180,831 This page does not forn) part of the statutory financial statements Page 16