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2021-03-31-accounts

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2021

Charity Number 1093009

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 March 2021

Contents Page
Trustees annual report 1 to 5
Independent examiners report 6
Statement of Financial Activities (including 7
income and expenditure account)
Balance sheet 8
Notes to the financial statements 9 to 15

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

TRUSTEES ANNUAL REPORT

For year ended 31 March 2021

The trustees are pleased to present their annual report together with the financial statements of the charity for the period ended 31 March 2021, which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Memorandum and Articles of Association, and 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).

1. Objectives and Activities

The charitable objects of Northern Lights Metropolitan Community Church (NLMCC) are to advance the Christian religion by proclaiming the gospel of Jesus Christ in Newcastle and elsewhere by providing Christian fellowship, worship, witness, action and service.

The main activities undertaken for the public benefit during the year have been as follows:-

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.

2. Achievements and Performance

To achieve our aims and objectives the Trustees have successfully provided:

The activities during this period (financial year 2020-21) was heavily informed by the impact of the Covid-19 pandemic. This meant a temporary stop to the in-person activities of the Church in line with national regulations; however the Church continued to fulfil its main purposes in providing spiritual growth and social fellowship both of which were incredibly important during the challenging time. The Year of Renewal instigated by the Pastor (Rev Rowbotham) continued as did delivery of the Five Year Plan but in a different context. This meant considerable movement to on-line services and social events which received very positive responses for the innovative and deep worship and social interaction these brought.

The Church invested in (and continues to invest in) new services and technology which has meant the quality of our on-line and now blended services has continues to strengthen reaching more people from a wider area than was previously possible. This is particularly positive as we have traditionally served a relatively large area with a large rural area making travel more difficult. The AV team has played an important and proactive role in this.

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NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

TRUSTEES ANNUAL REPORT

For year ended 31 March 2021

The renewed Pastoral Care Team has continued to provide direct help and draw on the Hardship fund throughout the year to bring practical support for food, clothing, travel and heating as well as offering continued prayer and a listening ear. Another important part of our work was sending out cards to those who were sick or had experienced a bereavement in their family.

The role of the team has been particularly important during the period of lockdown and significant loss and challenge people have been facing. Regular phone calls and cards to reassure people that they are loved and in our prayers, arranging food supplies and sometimes helping people access foodbanks. We’ve even picked up medical supplies and dropped them off at people’s homes. The team has also played an important role in increase social media activity including establishing a very active WhatsApp group for members to keep in touch with the full community as well as get in touch with particular members of the Pastoral Care Team.

In accordance with our statutes, the Board completed a review of the membership. The total active Membership at the end of April 2021 was 36. We are thankful to all who give their presence, time, talents and resources to support the work of the church and celebrate the love of God in our community, this gratitude is not just to the Members but to all who worship with us.

3. Plans for Future Periods

Covid 19 has had a massive impact on how we work as a church. We have continued to hold services every Sunday but these are now recorded and shown on You Tube. We have acquired Zoom and hold a prayer service most Wednesdays. After both the Sunday Service and the Wednesday service we meet via Zoom for a chance to have a coffee or tea together and a chat so we are still able to see each other and catch up with each other. All the Board meetings and Worship Team meetings are held via Zoom so ensuring all necessary meetings are on-going. Once permitted there has been a slow return to in person events and activities but this remains cautious and blended options remain for those who do not wish, or are not able to, join in person.

On 21st June 2020 we held a Special Congregational Meeting via Zoom to review the process for people coming into membership when we were unable to meet and undertake baptisms. We also discussed how we might hold our ACM. It was agreed that in exceptional circumstances such as these we would allow people into membership prior to baptism as long as they make a commitment to be baptized as soon as possible once we are able to do this.

After much debate we agreed to hold our ACM also on Zoom. This was a balance between being able to bring new people onto the Board via election rather than filling spaces via co-opting people onto the Board and knowing that some members might find it difficult to attend on-line or attend such they could both be seen and heard.

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NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

TRUSTEES ANNUAL REPORT

For year ended 31 March 2021

4. Reference and administrative details of the charity, its trustees and advisors

Charity Name Northern Lights Metropolitan Community
Church
Registered Charity 1093009
Number
Operational address St James URC
Northumberland Road
Newcastle upon Tyne
NE1 8JF
Trustees Dr M Wardle appointed 23/08/2020
Ms E Emeny appointed 23/08/2020
Mr J Davies appointed 13/09/2021
Ms G Walton appointed 23/08/2020
resigned 22/08/2021
Miss C.L. West resigned 23/08/2020
Dr A Chapman resigned 23/08/2020
Rev J Carpenter resigned 22/08/2021
Rev R Rowbotham resigned 25/04/2021
Treasurer Mr J Davies appointed 13/09/2021
Ms G Walton appointed 23/08/2020
resigned 22/08/2021
Miss C.L. West resigned 23/08/2020
Secretary Dr A Chapman resigned 23/08/2020
Dr M Wardle appointed 23/08/2020
resigned 22/08/2021
Independent Jim Dodds
Examiner Connected Voice Business Services Ltd
Higham House
Higham Place
Newcastle upon Tyne
NE1 8AF
Bankers Unity Trust Bank
Nine Brindleyplace
Birmingham
B1 2HB

5. Structure, Governance and Management

Governing documents

Northern Lights Metropolitan Community Church is a registered charity (no.1093009) and was registered on 17th July 2002.

The charity is governed by its constitution adopted on 7th October 2001 and amended on 21st April 2002, 10th July 2005, 31st January 2016, 21st October 2018 and the 21st June 2020.

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NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

TRUSTEES ANNUAL REPORT

For year ended 31 March 2021

Method of Recruitment of Trustees

Trustees can also be co-opted as required. The Annual Congregational Meeting (and election of Trustees) was postponed from the usual April meeting to August in 2020 and 2021 due to impact of Covid-19 but will return to the usual timing in 2022. At the August 2020 ACM Ms C West, Dr A Chapman stood down at the completion of their terms with Dr M Wardle, Ms G Walton and Ms E Emeny joining the Board at this time. In August 2021 at the ACM Ms G Walton and Rev J Carpenter stood down. Mr J Davies was co-opted onto the Board in September 2021. The Rev R Rowbotham resigned from his post in April 2021.

Risk management

The Trustees have assessed the risks to which the charitable company is exposed, in particular those related to the operations and finances of the charitable company, and are satisfied that systems and procedures are in place to mitigate any risk.

6. Financial Review

The financial year has been an unusual year and posed some challenges for the Church. Having only recently appointed a new permanent pastor (appointed June 2019) before the lockdown and with increased pressure on individual finances resulting in higher demands for support we have continued to draw on the reserves to support the work of the Church. The move to on-line and hybrid worship has also increased costs and reduced some opportunities for additional fund raised. The Church however did receive a National Lottery Grant (£9,996) for a project to support asylum seekers. This was separate to the wider work of the Church and was ring-fenced for these purposes. The work was started but the lockdown resulted in a slower start with the project ultimately returning the majority of funding in later 2021 (next financial year).

The charity received income of £44,024 which was £17,071 above the budget but this is largely due to the National Lottery Grant and an additional donation of £2,500 from the estate of a former member.

Our principal source of funding remains from the members and friends of Northern Lights MCC. The loss of envelope giving due to lack of in-person services was replaced with use of PayPal which proved successful raising £5,465.50 although this may have also slightly contributed to committed giving being £390 lower than forecast but still increased overall against the forecast. The Church ended the year with no outstanding loans and debts and is aware that it has enough in reserves for the next two years but needs to increase income in order to strengthen the reserves available in order to maintain its work in the following years.

Expenditure during the year was £40,812 largely driven by staff cost and cost in delivering the Church activities in particular increased costs in the move to on-line services with retained liabilities linked to premises rent. The largest areas of expenditure are for Staff Costs (51%), Worship Space and materials (14%) hire of an office and admin expenses (16%) and Social Justice Expenditure (14%).

At the end of the Financial Year 2020/21 Northern Lights MCC was linked to two accounts which stood at:

Northern Lights Metropolitan Community Church is primarily funded by donations. The total income for the year was £44,024 (2020: £26,121). This income is allocated across respective funds on the Statement of Financial Activities in accordance with the Statement of Recommended Practice.

The Statement of Financial Activities for the year ended 31 March 2021, shows a surplus across all funds of £3,213 (2020: deficit £7,489). The Balance Sheet at 31 March 2021 shows total funds carried forward of £39,859 (2020: £36,645) of which there are £3,244 restricted funds (2020: £nil).

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NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

TRUSTEES ANNUAL REPORT

For year ended 31 March 2021

7. Statement of Trustee Responsibilities

The charity trustees are responsible for preparing a trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The charity trustees are required to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of incoming resources and application of resources. In preparing financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on ……………………….…………. and signed on their behalf by: 28/01/22

James Davies Treasurer

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NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

For the year ended 31 March 2021

I report on the financial statements of Northern Lights Metropolitan Community Church for the year ended 31 March 2021, which are set out on pages 7 to 15.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's 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:

Basis of independent examiner's statement

My examination was carried out in accordance with 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 material matters have come to my attention which gives me cause to believe that in, any material respect:

I 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.

Jim Dodds Connected Voice Business Services Ltd Higham House Higham Place Newcastle upon Tyne NE1 8AF Date: 28/01/22

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NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

RECEIPTS AND PAYMENTS ACCOUNTS

For the year ended 31 March 2021

3
4
5
6
Payments
6
7
Net income/(expenditure)
Transfers between funds
Net income/(expenditure) and net
movement of funds
Total Receipts
Donations and grants
Receipts
Charitable expenditure
Total Payments
Governance costs
Fundraising events
Bank interest
Other trading activities
Notes
Closing cash at bank and in hand
Opening cash at bank and in hand		 Unrestricted
Funds
£
32,021
-
110
1,487
33,619
33,067
716
33,783
( 164 )
133
( 32 )
36,645
36,613		 Restricted
Funds
£
10,406
-
-
-
10,406
7,029
-
7,029
3,377
( 133 )
3,244
-
3,244		 Total
2021
£
42,427
-
110
1,487
44,024
40,096
716
40,812
3,213
-
3,213
36,645
39,859		 Total
2020
£
24,789
65
267
1,006
26,126
32,462
1,153
33,615
( 7,489 )
-
( 7,489 )
44,134
36,645

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities

The notes on pages 9 to 15 form an integral part of these accounts.

7

Charity Number 1093009

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

STATEMENT OF ASSETS AND LIABILITIES

As at 31 March 2021

Cash funds
Cash at bank and in hand
12
Liabilities
13
Notes		 Unrestricted
Restricted
Total
Funds
Funds
2021
£
£
£
36,615
3,244
39,859
851		 Total
2020
£
36,645
851

The notes on pages 9 to 15 form an integral part of these accounts.

These financial statements were approved by the Board on:

These financial statements were approved by the Board on: 28/01/22 and are signed on its behalf by: James Davies Treasurer

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NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2 Basis of accounting

2.1 Basis of preparation

The accounts have been prepared using the receipts and payments basis. An audit is not required by the Charity's constitution and has not been requested by the Trustees.

Analysis of income

3
Donations and grants
Funds for conferences
Hardship fund
Richard Armstrong Legacy
National Lottery
4
Fundraising events
5
6
Memorial fund
Donations/designated gifts
UFMCC Offerings
Other trading activities
Employment allowance
Committed giving
Cash offerings
Gift aid
Offerings / fundraisers
Investment on deposit account
Deposit account interest
Contingency fund (other/misc)		 Unrestricted
Funds
£
17,102
5,783
-
4,766
-
-
195
525
1,150
2,500
-
32,021
-
-
110
110
1,487
1,487		 Restricted
Funds
£
-
-
410
-
-
-
-
-
-
-
9,996
10,406
-
-
-
-
-
-		 Total
2021
£
17,102
5,783
410
4,766
-
-
195
525
1,150
2,500
9,996
42,427
-
-
110
110
1,487
1,487		 Total
2020
£
17,413
1,779
-
4,928
20
56
182
410
-
-
-
24,789
65
65
267
267
1,006
1,006

Income was £44,024 (2020: £26,126) of which £34,029 was unrestricted (2020: £26,126) and £9,996 was restricted (2020: £nil).

9

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

Analysis of resources expended

6
7		 Charitable expenditure
Direct costs
Support costs
Carbon Footprint plant a tree
Bank charges
Governance costs
Advertising
Pastoral appointment
Insurance
Telephone
Travel expenses
Payroll charges
Other expenses
Pastor salary
Independent examiner's fees for reporting on
the accounts
Preacher expenses
Hardship fund
Office costs
Lunches and socials
Pride
Music and video licence
Board costs
Pastors pension
Rent
Equipment and supplies
Family Service
Website
UFMCC special offerings
Partnership in Ministry/Tithe
Rainbow Home
Conference		 Unrestricted
Funds
£
18,888
538
147
-
365
-
-
-
4,380
2,101
1,171
1,320
88
-
-
195
-
1,031
-
332
495
1,006
607
188
216
33,067
56
660
716		 Restricted
Funds
£
2,049
-
-
-
-
-
262
-
3,000
-
-
-
1,099
-
-
-
-
541
-
15
-
26
38
-
-
7,029
-
-
-		 Total
2021
£
20,936
538
147
-
365
-
262
-
7,380
2,101
1,171
1,320
1,187
-
-
195
-
1,572
-
347
495
1,031
645
188
216
40,096
56
660
716		 Total
2020
£
14,306
391
132
375
266
71
558
1,044
7,380
1,882
1,718
1,318
102
18
181
60
56
55
116
422
492
952
189
60
316
32,462
523
630
1,153

Expenditure was £40,812 (2020: £33,618) of which £33,783 was unrestricted (2020: £33,465) and £7,029 was restricted (2020: £150).

7

10

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

8 Fees for examination of the accounts

ees for examination of the accounts
Independent examiner's fees for reporting on the accounts
Other accountancy services paid to the examiner		 2021
£
660
645
1,305		 2020
£
660
189
849

9 Analysis of staff costs and the cost of key management personnel

nalysis of staff costs and the cost of key management personnel
Pension
Salary		 2021
£
19,554
587
20,140		 2020
£
13,472
1,225
14,697

No employee received remuneration above £60,000 (2020: £nil)

The key management personnel of the charity, comprise the trustees. The total employee benefits of the key management personnel of the charity were £20,140.

10 Staff numbers

The average monthly head count was 1 staff (2020: 1 staff) and the average monthly number of full-time equivalent employees during the year were as follows:

Charitable activities
The parts of the charity in which the employee's work		 2021
Number
1.0
1.0		 2020
Number
1.0
1.0

11

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

10 Transactions with trustees

Trustees' expenses

No trustee expenses have been incurred in the year.

Other trustees' transactions

During the year, the trustees made donations to the charity.

Donations of unrestricted nature
uring the year, former trustees made donations to the charity.
Donations of unrestricted nature		 2021
£
5,142
5,142
2021
£
5,410
5,410		 2020
£
7,180
7,180
2020
£
-
-

During the year, former trustees made donations to the charity.

These donations made by the trustees have no conditions attached to them and do not form a significant part of the charities income.

Transaction(s) with related parties

The following detail the related party transactions in the reporting period.

Rainbow Home
Former trustee
Relationship
Relatedparty
Description of transaction
Donations		 2021
£
1,320
1,320		 2020
£
1,318
1,318

The only related party transaction is detailed above. The former trustee, C West, operates the above charity receiving the donations from Northern Lights Metropolitan Community Church. The donations were issued under normal market conditions and do not form a significant portion of the recipients income.

11 Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

12

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

12 Cash at bank and in hand

Cash at bank
Paypal
Deposit account
Cash at bank
Deposit account
13
Liabilities at the period end
Independent examination of accounts
Payroll charges		 Unrestricted
Funds
£
6,070
343
30,201
36,615
Unrestricted
Funds
£
2,376
34,069
36,445		 Restricted
Funds
£
3,244
-
-
3,244
Restricted
Funds
£
200
-
200
2021
£
660
191
851		 2021
£
9,315
343
30,201
39,859
2020
£
2,576
34,069
36,645
2020
£
660
191
851

14 Events after the end of the reporting period

Due to the COVID-19 pandemic, it has put pressure on all charities in 2021. It should be noted that the creditors are being paid when the payments are falling due and are still operating on a going concern basis.

No other significant events affecting the Company since the year end.

13

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

15 Analysis of charitable funds

Analysis of movements in unrestricted funds

For the year ended 31 March 2021

For the year ended 31 March 2021
Analysis of movements in unrestricted funds
Fund
balances
brought
forward
Unrestricted funds
£
General unrestricted fund
36,645
Totals
36,645
Fund
balances
brought
forward
Unrestricted funds
£
General unrestricted fund
43,934
Totals
43,934
For the year ended 31 March 2020		 Incoming
resources
£
33,619
33,619
Incoming
resources
£
26,126
26,126		 Resources
expended
£
( 33,783 )
(33,783)
Resources
expended
£
( 33,465 )
(33,465)		 Transfers
£
133
133
Transfers
£
50
50		 Fund
balances
carried
forward
£
36,613
36,613
Fund
balances
carried
forward
£
36,645
36,645

Purpose of unrestricted funds

General unrestricted fund The 'free reserves' of the charity

Analysis of movement in restricted funds

For the year ended 31 March 2021

Restricted funds
National Lottery
Memorial fund
Totals		 Fund
balances
brought
forward
£
-
-
-		 Incoming
resources
£
9,996
410
10,406		 Resources
expended
£
( 7,029 )
-
(7,029)		 Transfers
£
( 133 )
-
(133)		 Fund
balances
carried
forward
£
2,834
410
3,244

For the year ended 31 March 2020

Restricted funds
Building fund
Totals		 Fund
balances
brought
forward
£
200
200		 Incoming
resources
£
-
-		 Resources
expended
£
( 150 )
(150)		 Transfers
£
( 50 )
(50)		 Fund
balances
carried
forward
£
-
-

14

NORTHERN LIGHTS METROPOLITAN COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

Analysis of movement in restricted funds

Purpose of major restricted funds

Restricted funds represent income resources used for a specific purpose within the charity as identified by the donor.

National Lottery Memorial fund

COVID funding Margaret Bell memorial fund

15