DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 **Church Accruals Accounts 2021-22** ## **THE METHODIST CHURCH** ## **STANDARD FORM OF ACCOUNTS ACCRUALS BASIS** **FOR THE YEAR ENDED 31 AUGUST 2022** **----- Start of picture text -----**
Loughton Methodist Church Church no 35/33
Registered Charity - Registration number 1126831
Church Chair Revd Sue Creighton
Church Stewards Jill Geddes
Sharon Heather
Paul Davies
Stephen Murray (reappointed from December 2021)
Margaret Donoghue
Church Treasurer Martin Howarth
**----- End of picture text -----**
DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **TRUSTEES' ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **1 Introduction** - **1.1** The Loughton Methodist Church serves to enable and support the local community. The Chair - Revd Sue Creighton works together with a team of paid and voluntary officers to support and develop the life of the Church. On 20 November 2008, the Church was entered into the Register of Charities and the Charity Number is 1126831. The Managing Trustees of the Loughton Church are the members of the Church Council which meets generally 3 - 5 times per year to consider the work of God in the Church and the general management of the Church and its business. The membership of the Council is governed by the Standing Orders of the Methodist Church. The officers of the Church who are appointed by the Church Council to act upon its behalf comprise the Minister, the Ministerial Staff Team, the Church Stewards and the Church Financial Steward (treasurer). ## **2 Objectives and Activities** ## **2.1 Aims and organisation** The aims of the Church Council through its officers are twofold: - to secure and sustain the Church's viability and future - to give assurance to the general public that the Church, which is a charity, intends to use all of the money coming into its care for the purpose of the charity. ## **2.2 Loughton Methodist Church Calling and Vision** The Church's vision and calling document states “At LMC we are committed to sharing life, doing mission and building community. We believe this honours Christ's call, builds God's Kingdom and brings transformation." The church will achieve this by: - Sharing life through worship, small groups, rites of passage, pastoral care, listening, encouraging one another and social activities - By engaging in God’s mission of justice, hope and peace for the world. The church listens and responds to God’s call to bring change and transformation - Building community through welcome, respect, acceptance, tolerance, inclusivity and providing a sense belonging During the previous year the Loughton Methodist Church council took over the responsility for the Loughton Trinity Debden Church. The income and expenditure relating to the church is included in the SOFA on page 8 for year ended 31 August 2021 and year ended 31 August 2022. ## **3 Review of progress and achievements** ## **3.1 Loughton Methodist Church Annual Report** A verbal report of the Loughton Methodist Church was presented to the Annual Church meeting, which gave full details of the activities of the Church. Page 1 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **TRUSTEES' ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **3.2 Plans for future years** - To develop our 5 year calling and vision which will include an upgrade of the community café and welcome area to develop a community hub - Promote and encourage new leadership across the life of the church and equip, train and support new and existing leaders ## **4 Financial Plans and Review** - The Church's financial requirements are reviewed each year in the context of the aims listed above and the local congregation are invited to make offers of a share in meeting the total cost. - The annual budget includes a provision for the general maintenance of the Church property, however, if large expenditure is needed within the year to maintain Church property, the work needed will be agreed and authorised on a case by case basis. Large capital requirements are generally met from the Vision Fund (Designated). - Church income is drawn primarily from the offerings and letting. During the year offerings reduced to £85,516 (2021: £91,237). - Rental income was received during the year from the letting of halls to external groups. During the year letting income increased to £73,560 (2021: £23,667). - Expenditure reduced to £259,739 (2021: £288,679) as the property expenses regarding the toilet update are included. - At 31 August 2022, unrestricted reserves, excluding the property fund, stood at £302,686 (2021: £316,968). ## **Unrestricted Funds** - General Fund – this fund together with other unrestricted funds represent at least six months expenditure of the Church’s general activities and whilst this represents a significant sum, it is considered important that this level of funding be maintained to meet unexpected expenditure. The balance at the year end was £9,431,739 after adjustments for accruals, including £9,159,064 relating to the Church property within the Church but where the title lies with the Trustees for Methodist Church Purposes. - Designated Fund - For specific purposes, but not restricted by document or deed to that purpose only (Balance at the year end £30,011 (2021: £Nil)). ## **Restricted Funds** - For specific purposes and restricted by document or deed to that purpose only. The balance at the year end was £Nil (2021: £Nil). Page 2 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **TRUSTEES' ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **4.1 Investment Policy** The investment of surplus funds is operated through the Central Finance Board (CFB) of the Methodist Church. CFB aims to provide high quality investment service seeking above average returns for long term investors, whilst ensuring that the securities held by all its funds are in line with the ethical policy of the Methodist Church. The Church has its funds in a deposit account with CFB. ## **4.2 Reserves Policy** Our Reserves Policy relates to our unrestricted funds which are freely available for any or all of the purposes of the Church. It is our policy to hold at least six months expenditure in hand to enable us to meet any calls for funding requirements. ## **5 Trustees Responsibilities** For each financial year ending 31 August, the trustees are required to prepare financial statements that give a true and fair view of the Church's financial activities during the year and of its financial position at the end of the year. In preparing these financial statements, the Trustees must: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - prepare accounts to comply with the Charities SORP; - follow applicable accounting standards subject to any material departures disclosed and explained in the accounts; - prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in - operation. The trustees are responsible for ensuring that sufficient accounting records are kept which disclose with reasonable accuracy at any time the financial position of the Methodist Church - Loughton Church and enables them to ensure that the financial statements comply with the law and Standing Orders of the Methodist Church. They are also responsible for safeguarding the assets of the Church and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **5.1 Risk Management** The Church has been considering the various risks facing the Church and the impact and the likelihood of issues happening, which will be reviewed every few years. The headings under which the risks are being categorised include: - Governance Risks including Trustees’ Responsibilities - Operational Risks including Resources, People and Property - Financial Risks - External Risks and Legal Risks Page 3 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **TRUSTEES' ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **6 Structure, governance and management** ## **6.1 Structure** The Loughton Methodist Church is an unincorporated association and is governed by the Methodist Church Act 1976, the deed of Union and the Model Trust Deeds of the Methodist Church. It was registered with the Charity Commissioners on 20 November 2008. Churches are the coordinating charities for local public. Most decisions are made at or ratified by the Church Council. The Methodist Conference meets once each year as the supreme denominational body for all Methodist Churches. - **1** Overall regulatory authority rests with the Methodist Conference. - **2** The Connexional office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Churches within the Circuit. - **3** The Church Council passes regulatory control down to church councils for local implementation by the presbyter, the Church Stewards, and other officers, and this regulatory authority is then exercised by church councils as Managing Trustees of their charity. ## **6.2 Purpose of the Church** The purposes of the Loughton Methodist Church are and deemed to have been since the date of the union the advancement of: - **a** the Christian faith in accordance with the doctorinal standards and the discipline of the Methodist Church, and - **b** any charitable purposes for the time being of any connexional, District, Circuit, local or other organisation of the Methodist Church, and - **c** any charitable purpose for the time being of any society or institution subsidiary or ancilliary to the Methodist Church, and - **d** any purpose for the time being of any charity being a subsidiary or ancillary of the Methodist Church. The primary purpose of this Church is to advance the mission of the Church in the local community. - **1** providing opportunities for Churches to work together and support each other - **2** offering to Churches resource of finance, personnel and expertise. ## **6.3 Governance** Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by the order of the annual conference (CPD). Day to day management of the Church is undertaken by the Church Leadership Team, the Church Finance and Property Committee and the Church Coordination Group. ## **6.4 Public Benefit Requirement** The trustees had due regard to the guidance published by the Charities Commission in compliance with its duties under section 4 of the Charities Act 2011. This guidance sets out two key principles: 1. The organisation must have an identifiable benefit. 2. The benefit must be to the public or a section of the public. The Church exists to: - increase awareness of God’s presence and to celebrate God’s love; - help people to learn and grow as Christians, through mutual support and care; and - be a good neighbour to people in need and challenge injustice. The trustees consider that for these reasons the charity meets these public benefit requirements. Page 4 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **TRUSTEES' ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **6.5 Related Parties** The Church is part of the Forest Methodist Circuit and is also accountable to the Methodist Conference. ## **7 Reference and Administration Details** - **7.1** The full name of the Charity is Loughton Methodist Church. - **7.2** The Loughton Methodist Church is registered as a charity with the Charity Commission in England and Wales. The organisation's Charity No is 1126831. - **7.3** The address of the Church for correspondence is 260 High Road, Loughton, Essex, IG10 1RB. The name of the person to whom correspondence should be addressed is the Minister. **7.4** The trustees who served during the year are listed on the last page of these financial statements. The Church's Bankers are: HSBC, CAF Bank and the Central Finance Board of the Methodist church "CFB". **7.5** Investments managed by the Church are held by Trustees for Methodist Church Purposes ''TMCP'' ## **7.6 Trustee Training** A range of guidance produced by Methodist Connexion to support the effective running of the Church, specifically the leaflet 'The role of a Trustee in the Methodist Church' is given to all new Church Council members as induction to their role as trustees. ## **7.7 Disclosure of information to auditors** In so far as the trustees are aware: - there is no relevant audit information of which the Charity's auditors are unaware; and - the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information - and to establish that the auditors are aware of that information. ## **7.8 Auditors** The auditors Clay Ratnage Strevens & Hills had been reappointed as auditors to the Church for this year. ## 23/3/2023 Approved by the managing trustees on ….............................................................. and signed on their behalf by: ……………………………………………. ## Martin Howarth ## Treasurer Page 5 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **INDEPENDENT AUDITORS' REPORT** ## **TO THE TRUSTEES OF THE LOUGHTON METHODIST CHURCH** ## **Opinion** We have audited the financial statements of Loughton Methodist Church (the ‘charity’) for the year ended 31 August 2022 which comprise Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## In our opinion the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 August 2022, and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis of opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report , other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 6 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **INDEPENDENT AUDITORS' REPORT (CONTINUED)** ## **TO THE TRUSTEES OF LOUGHTON METHODIST CHURCH** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement set out on page 3, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: • Obtaining an understanding of the legal and regulatory frameworks applicable to the charity. • Obtained an understanding of how the charity is complying with those legal and regulatory frameworks by making enquiries to the trustees. • The susceptibility of the charity’s financial statements to material misstatement caused by fraud or other irregularities were assessed with the following procedures: - Identifying and assessing the design effectiveness of controls which trustees have in place to prevent and detect fraud - Understanding how those charged with governance considered the potential for override of controls and management biases - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Clay Ratnage Strevens & Hills** **Chartered Accountants & Statutory Auditors** Suite D, The Business Centre Faringdon Avenue Romford, Essex RM3 8EN **Date:** 23/3/2023 Clay Ratnage Strevens & Hills is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. Page 7 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 **Church No. 35/33** ## **LOUGHTON METHODIST CHURCH** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 AUGUST 2022** **----- Start of picture text -----**
General Fund Designated Other Funds Endowment Total Total
(Unrestricted) Funds (Restricted) Funds 2021-22 2020-21
Note
(Unrestricted)
£ £ £ £ £ £
Income
Donations and Legacies 2 17,631 30,000 - - 47,631 71,264
Interest and Investment Income 578 11 - - 589 478
Other income 3 25,286 - - - 25,286 5,681
Offerings and Tax recoverable 4 85,516 - - - 85,516 91,237
- - - - - -
Connexional Advance and Property Fund
- - - - - -
Capital Receipts
Grants 5 12,875 - - - 12,875 57,453
Lettings 73,560 - - - 73,560 23,667
Total Income 215,446 30,011 - - 245,457 249,780
Expenditure
Grants and Donations 6 6,120 - - - 6,120 6,120
Salaries and associated costs 7 85,336 - - - 85,336 92,516
Property (incl Ins., C tax, utilities etc) 8 54,240 - - - 54,240 88,363
Office Expenses (Admin., tel. travel etc.) 9 7,329 - - - 7,329 7,387
Circuit assessment 67,269 - - - 67,269 72,095
- - -
Depreciation 9,795 9,795 4,685
Other Expenditure (incl training) 10 25,462 - - - 25,462 13,517
Audit 11 4,188 - - - 4,188 3,996
Capital Expended - - - - - -
- - - - - -
Total Expenditure 259,739 - - - 259,739 288,679
- -
Net Income/(Expenditure) (44,293) 30,011 (14,282) (38,899)
Transfers between funds - - - - - -
Sub Total (44,293) 30,011 - - (14,282) (38,899)
Gains/(losses) on revaluation of fixed assets - - - - - -
Trinity Debden introduced - - - - 0 1,003,744
Net investment in funds (44,293) 30,011 - - (14,282) 964,845
Total funds brought forward from last year 9,476,032 - - - 9,476,032 8,511,187
- -
Total funds carried forward at end of year 9,431,739 30,011 9,461,750 9,476,032
**----- End of picture text -----**
**For information only: Money received and passed on to External Organisations Balance brought forward from last year** Offerings/Gifts - received for External Organisations Offerings/Gifts - passed to External Organisations **Balance still to be paid** **----- Start of picture text -----**
87 87
(4,691) (160)
4,494 160
(110) 87
**----- End of picture text -----**
The notes on pages 10 to 15 form part of these accounts. Page 8 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 **Church No. 35/33** ## **LOUGHTON METHODIST CHURCH** ## **BALANCE SHEET** ## **AS AT 31 AUGUST 2022** **----- Start of picture text -----**
General Fund Designated Other Funds Endowment Total Total
Notes (Unrestricted) Funds (Restricted) Funds 2022 2021
(Unrestricted)
£ £ £ £ £ £
Tangible Fixed Assets
Church Property and other fixed assets 12 9,180,096 - - - 9,180,096 9,169,451
Investment properties - - - - - -
Investments - - - - - -
Total fixed assets 9,180,096 - - - 9,180,096 9,169,451
Current Assets
Debtors and Prepayments 13 18,268 - - - 18,268 63,526
Central Finance Board and Trustees
for Methodist Church Purposes
deposits etc 14 58,338 - - - 58,338 130,958
Cash at Bank and in hand 15 189,524 30,011 - - 219,535 140,281
Total current assets 266,130 30,011 - - 296,141 334,765
Creditors and Accruals (due in -
under one year) 16 14,487 - - 14,487 28,184
Net current (liabilities)/assets 251,643 30,011 - - 281,654 306,581
Total assets less current liabilities 9,431,739 30,011 - - 9,461,750 9,476,032
Long term liabilities
Loans to the Church - - - - - -
Grants Payable 17 - - - - - -
Other liabilities due after one year - - - - - -
Net assets 9,431,739 30,011 - - 9,461,750 9,476,032
Funds of the Church
General Fund (Unrestricted) 18 9,431,739 9,431,739 9,476,032
Designated Funds (Unrestricted) 18 30,011 30,011 -
Total Unrestricted funds 9,431,739 30,011 9,461,750 9,476,032
Other Funds (Restricted) 18 - - 0
Endowment Funds (Restricted) 18 - - -
Total Restricted funds - 0
Total Funds 9,431,739 30,011 - - 9,461,750 9,476,032
**----- End of picture text -----**
## 23/3/2023 Approved by the managing trustees on …............................................................................. and signed on their behalf by: ……………………………………………. Martin Howarth Treasurer The notes on pages 10 to 15 form part of these accounts. Page 9 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **1 Accounting framework and accounting policies** ## **i Accounting framework** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable tocharities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. ## **ii Public benefit entity** The Church meets the definition of a public benefit entity under FRS 102. ## **iii Basis** These accounts have been prepared on the basis of historical cost except that Church Property is shown at their market value at the end of the year, on the accruals basis to show a true and fair view of the Church's financial position and activities. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes below. ## **iv Content** The financial information presented is relevant, reliable, comparable and complete. Where estimates are used these are based on experience, research and judgement. The accounts are expressed in £Sterling, rounded to the nearest pound. ## **v Going concern** Based on the monetary assets and human resources available at 31 August 2022, the trustees believe that the Church is a going concern. ## **vi Income recognition** Income is brought into account when it is more likely than not that the economic benefit of the income will accrue to the Church. No attempt is made to measure the value of services donated by volunteers. In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. ## **vii Expenditure** This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Church to pay out resources. ## **viii Grants** Grants are recognised annually only as and when any performance conditions attaching to the award are met, even when the award is for a recurrent grant over more than one year. All grants awarded for payment in future financial years are conditional on the Grants Committee being satisfied, on the basis of progress reports from the grantee, that the grant's achievements to date justify the payment of further instalments of that grant. Such commitments are noted as contingent liabilities and included within other relevant designated fund in these accounts. Page 10 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **ix VAT** Since the Church is not VAT registered, all input VAT is charged with the expenses to which it relates. ## **x Tangible fixed assets** These are capitalised if they can be used for more than one year. The Church Property is shown in the accounts at market valuation at the end of the financial year. Other fixed assets have been depreciated using the straight-line method over four years. ## **xi Debtors and creditors; bank and cash** Debtors are stated at the amounts owed to the Church or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the Church. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values. ## **xii Ministers' manse costs** The Church is not required to provide accommodation for the Minister and his / her family. This is the responsibility of the Circuit. Page 11 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 AUGUST 2022** **----- Start of picture text -----**
2 Donations and legacies 2021-22 2020-21
Donation and gift day 16,876 15,185
Donation (Flower fund) 278 -
Church Vision Fund - 50,000
Bosnia Fund 12 9
-
Donations (Property projects) 30,000
Property project fund - Various donations 465 6,070
47,631 71,264
3 Other income 2021-22 2020-21
Welcome area receipts 20,627 3,980
Bank compensation - 550
Bookstall fund 999 -
PALS fund - 306
-
Holiday club 1,673
-
Falcon's flight 1,751
Trinity - Street party 236 -
Job retention scheme - 845
25,286 5,681
4 Offerings and tax recoverable 2021-22 2020-21
Offerings 71,168 72,273
Tax recoverable 14,348 18,964
85,516 91,237
5 Grants and donations received 2021-22 2020-21
-
Property project fund - Biffa grant 51,304
-
Forest circiut - Trinity Debden 6,149
-
Art Council grant 10,000
-
Grant - Epping Forest District Council 2,875
12,875 57,453
6 Grants and donations paid 2021-22 2020-21
Donations paid 4,560 4,560
Contributions to Connexional and circuit funds 1,560 1,560
6,120 6,120
**----- End of picture text -----**
Page 12 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 AUGUST 2022** |**7**
**Salaries and associated costs**
Gross Pay
Employer's National Insurance Contribution
Employer's pension contribution to the defined benefit scheme
Apprentiship levy
Administration cost
**8**
**Property costs**
Church repairs
Accident costs (amounts paid £45,914 less amounts received from insurance £45,211)
Insurance and utilities
Property management and cleaning
Heat and light
**9**
**Office expenses**
Telephone
Computer expenses
Copier expenses
Postage and stationery
**10**
**Other expenditure**
Pastoral work
Sundries
Training cost
Welcome area cost
Flower fund
Life works - Falcon Flight
Covid-19 sanitsers
Youth work projects
Art centre cost
Lifework - Indefinite leave to remain charge
Trinity - Expenses
Trinity - Publicity
**11**
**Fees for examination or audit of the accounts**
Auditors' fees
Other fees (e.g.: advice, accountancy services)|**2021-22**
**2020-21**
74,772
80,903
5,240
6,300
4,470
4,429
374
404
480
480
85,336
92,516
**2021-22**
**2020-21**
13,414
70,072
703
-
5,694
6,640
21,336
15,282
13,093
(3,631)
54,240
88,363
**2021-22**
**2020-21**
1,603
2,029
839
1,322
3,558
3,259
1,329
777
7,329
7,387
**2021-22**
**2020-21**
3,835
4,161
159
199
385
741
6,494
3,497
389
-
11,825
-
-
769
915
854
-
888
-
2,408
949
-
511
-
25,462
13,517
**2021-22**
**2020-21**
2,548
2,432
1,640
1,564
4,188
3,996| |---|---| Page 13 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **12 Total Tangible Fixed Assets** |**Cost or valuation**
Balance at 1st Sept 2021
Additions in the year
Write off in the year
Revaluations in the year
Balance at 31st August 2022
**Depreciation**
Balance at 1st Sept 2021
Charge in the year
Depreciation on write off
Balance at 31st August 2022
**Net Book Value @ 31 August 2022**
**Net Book Value @ 31 August 2021**|**Land and**
**Other**
**Total**
**Buildings**
**Fixed**
**Assets**
9,159,064
135,122
9,294,186
-
20,440
20,440
-
-
-
-
-
-
9,159,064
155,562
9,314,626
-
124,735
124,735
-
9,795
9,795
-
-
-
-
134,530
134,530
**9,159,064**
**21,032**
**9,180,096**
**9,159,064**
**10,387**
**9,169,451**| |---|---| The Land and Buildings (Church Property) were revalued in the year by the Trustees and there was no change in value. No depreciation is provided on the building because the trustees consider the current fair value of the church buildings (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The church property has been reviewed for impairment. ## **13 Debtors and prepayments** All sums paid in advance at 31 August 2022 were for purposes required during 2022-23. |Circuit assessment paid in advance
Light and heat
Other debtors
Gift aid tax recoverable
Accident expenses to be received from insurer
**Total**
**Prepayments and accrued income**|**2021-22**
**2020-21**
17,899
16,817
-
1,570
369
10,087
-
18,964
-
16,088
18,268
63,526| |---|---| ## **14 Trustees for Methodist Church Purposes** The funds that support the Vision Fund are held by TMCP. TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated funds. TMCP ensure that, through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference. Page 14 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 AUGUST 2022** ## **15 Central Finance Board (CFB) and cash at bank** The Church has one current account at HSBC Plc (closed in Dec 2022), one current account with Barclays Plc, two accounts with NatWest Bank and two accounts with CAF Bank, two deposits with Shawbrook Bank, all are authorised institutions. The sums held on the account are immediately available. In addition, the Church has one deposit account at CFB. Interest is earned on this CFB account and credited monthly. ## **16 Creditors and accrued expenses** **----- Start of picture text -----**
|||| |---|---|---| |2021-22|2020-21| |Audit and accountancy fees|4,188|3,996| |Owed to other charity|111|-| |Cleaning accruals|1,563|2,817| |EBAC Grant - Livestreaming|8,625| |-| |Property project fund - Livestreaming grant|11,500| |-| |Arts Council Grant for Falcon Flight 21|9,000| |Ticket receipt less expenses for Falcon Flight 21|-|871| |14,487|28,184| **----- End of picture text -----**
## **17 Grant commitments** There were no future commitments at 31 August 2022 ## **18 Church funds (Unrestricted and Restricted)** The Church maintains a number of separate funds. The purpose, type, movement and state as at the end of year is documented below. The funds held constitute: General Funds for any purpose, Designated Funds for specific purposes, but not restricted for that purpose only and Restricted Funds for specific purposes and restricted for that purpose only. Details of each material fund are disclosed in the notes below. **----- Start of picture text -----**
|||||||||| |---|---|---|---|---|---|---|---|---| |Project|2021-22|2020-21| |General Funds - Unrestricted|For use at the discretion of the trustees in the furtherance of|9,431,739|9,476,032| |the|objectives|of|the|Church.|This|excludes|funds|which| |have been designated for a specific purpose.| |-| |Designated Funds - Unrestricted|For specific purposes, but not restricted by document or|30,011| |deed to that purpose alone.| |Other Funds - Restricted|For specific purposes and restricted by document or deed to|-|-| |that purpose alone.| |9,461,750|9,476,032| **----- End of picture text -----**
## **19 Transfer between funds** Restricted funds **----- Start of picture text -----**
||| |---|---| |2021-22|2020-21| |-|-| **----- End of picture text -----**
The trustees have concluded the Church does not hold any funds which are considered to be for a specific purpose and as a result have decided to transfer the Restricted Funds balance to the General Funds. ## **20 Volunteer contribution** Every entity (Connexion, District, Circuit, Church) within the Methodist church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherence of the work of the Church. It is the volunteers who are involved in every activity in the church and without them the church would not function. We are grateful to all of them for their help and commitment. Page 15 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH DECLARATIONS** ## **Treasurer** I confirm that I have prepared the accounts from the records of the Church and that they include all funds under the control of the Church Council . **----- Start of picture text -----**
Signature of Treasurer
Name Date
Martin Howarth 23/3/2023
Address
16 Marjorams Avenue, Loughton, Essex IG10 1PT
**----- End of picture text -----**
## **Presentation to the Church Council for approval.** **----- Start of picture text -----**
I confirm that the Accounts have been or will be (*) presented to the Church Council on
20/10/2022 and were or will be (*) approved on 20/10/2022
Signature of the Chair of the meeting
Name of the Chair of the meeting
Rev Sue Creighton
Date
23/3/2023
**----- End of picture text -----**
* Delete as appropriate Page 16 DocuSign Envelope ID: 41EAC12A-1D6E-4B45-934C-CAC7B354F635 ## **LOUGHTON METHODIST CHURCH** ## **TRUSTEES** ## **FOR THE YEAR ENDED 31 AUGUST 2022** **Date appointed / resigned** |||Andrea|Moles| |---|---|---|---| |||Chris|Beament| |||Christine|Baker| |||Christine|Whatson| |||David|Hobbs| |||Jill|Angold-Stephens| |||Jill|Geddes| |||Keith|Aldred Dr| |||Margaret|Buttress| |||Margaret|Donoghue| |||Martin|Howarth| |||Mary|Knapman| |||Paul|Davies| |||Peter|Moles| |||Sharon|Heather| |||Stephen|Perry| |||Sue|Creighton| |01|September 2021|Stephen|Murray| ||08 May 2022|Julie|Maule| ||08 May 2022|Paul|Hay| |||**Resigned**|| ||08 May 2022|Susan|Judd| Page 17