DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
Church Accruals Accounts 2022-23
THE METHODIST CHURCH
STANDARD FORM OF ACCOUNTS ACCRUALS BASIS FOR THE YEAR ENDED 31 AUGUST 2023
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 Margaret Donoghue
Church Treasurer Martin Howarth
DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
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
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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
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Building community through welcome, respect, acceptance, tolerance, inclusivity and providing a sense belonging
During the year ended 31 August 2021 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 9 for year ended 31 August 2022 and year ended 31 August 2023.
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.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
3.2 Plans for future years
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To develop our 5 year calling and vision by promoting the use of the upgraded community café and welcome area to develop a community hub
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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
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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. The funding of large capital requirements is reviewed on a case by case basis and grants applied for where necessary.
-
Church income is drawn primarily from the offerings and letting. During the year offerings increased to £86,333 (2022: £85,516).
-
Rental income was received during the year from the letting of halls to external groups. During the year letting income increased to £83,246 (2022: £73,560).
-
Expenditure increased to £291,350 (2022: £259,739) as the property expenses regarding the Wesley café refurbishments are included.
-
At 31 August 2023, unrestricted reserves, excluding the property fund, stood at £269,445 (2022: £302,686).
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 £9,420,662 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 was £7,847 (2022: £30,011).
Restricted Funds
- For specific purposes and restricted by document or deed to that purpose only. The balance at the year end was £6,971 (2022: £Nil).
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
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:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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prepare accounts to comply with the Charities SORP;
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follow applicable accounting standards subject to any material departures disclosed and explained in the accounts;
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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
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
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.
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1 Overall regulatory authority rests with the Methodist Conference.
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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.
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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
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c any charitable purpose for the time being of any society or institution subsidiary or ancilliary to the Methodist Church, and
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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.
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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:
-
The organisation must have an identifiable benefit.
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The benefit must be to the public or a section of the public.
The Church exists to:
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increase awareness of God’s presence and to celebrate God’s love;
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help people to learn and grow as Christians, through mutual support and care; and
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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.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
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
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7.1 The full name of the Charity is Loughton Methodist Church.
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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.
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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.
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7.4 The trustees who served during the year are listed on the last page of these financial statements.
The Church's Bankers are: CAF Bank, Barclays Bank Plc 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:
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there is no relevant audit information of which the Charity's auditors are unaware; and
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the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information
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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.
28/6/2024
Approved by the managing trustees on ….............................................................. and signed on their behalf by:
…………………………………………….
Martin Howarth
Treasurer
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
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 2023 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).
In our opinion the financial statements:
• give a true and fair view of the state of the charity’s affairs as at 31 August 2023, 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.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE TRUSTEES OF THE 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
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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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:
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Identifying and assessing the design effectiveness of controls which trustees have in place to prevent and detect fraud
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Understanding how those charged with governance considered the potential for override of controls and management biases
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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.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE TRUSTEES OF THE LOUGHTON METHODIST CHURCH
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. This risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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: 1/7/2024
Clay Ratnage Strevens & Hills is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
Church No. 35/33
LOUGHTON METHODIST CHURCH
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 AUGUST 2023
| Note Income |
Note Income |
General Fund (Unrestricted) |
Designated Funds (Unrestricted) |
Other Funds (Restricted) |
Endowment Funds |
Total 2022-23 |
Total 2022-23 |
Total 2021-22 |
|---|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | £ | |||
| Donations and Legacies | 2 | 38,155 | - |
4,684 | - |
42,839 | 47,631 | |
| Interest and Investment Income | 2,853 | 156 |
- |
- | 3,009 | 589 | ||
| Other income | 3 | 27,068 | - |
- | - | 27,068 | 25,286 | |
| Offerings and Tax recoverable | 4 | 86,333 | - |
- | - | 86,333 | 85,516 | |
| Connexional Advance and Property Fund | - | - | - | - | - | - | ||
| Capital Receipts | - | - | - | - | - | - | ||
| Grants | 5 | 2,875 | - |
19,710 | - |
22,585 | 12,875 | |
| Lettings | 83,246 | - |
- | - |
83,246 | 73,560 | ||
| Total Income | 240,530 | 156 |
24,394 |
- |
265,080 | 245,457 | ||
| Expenditure | ||||||||
| Grants and Donations | 6 | 5,770 | - |
- | - |
5,770 | 6,120 | |
| Salaries and associated costs | 7 | 91,759 | - |
- | - | 91,759 | 85,336 | |
| Property (incl Ins., C tax, utilities etc) | 8 | 64,248 | - |
11,835 | - |
76,083 | 54,240 | |
| Office Expenses (Admin., tel. travel etc.) | 9 | 8,358 | - |
- | - | 8,358 | 7,329 | |
| Circuit assessment | 71,594 | - | - | - | 71,594 | 67,269 | ||
| Depreciation | 12,475 | - |
5,588 | - |
18,063 | 9,795 | ||
| Other Expenditure (incl training) | 10 | 15,319 | - |
- | - | 15,319 | 25,462 | |
| Audit | 11 | 4,404 | - |
- | - | 4,404 | 4,188 | |
| Capital Expended | - | - | - | - | - | - | ||
| Total Expenditure | 273,927 | - |
17,423 | - |
291,350 | 259,739 | ||
| Net Income/(Expenditure) | (33,397) | 156 | 6,971 | - | (26,270) | (14,282) | ||
| Transfers between funds | 22,320 | (22,320) | - | - | - | - | ||
| Sub Total | (11,077) | (22,164) | 6,971 | - | (26,270) | (14,282) | ||
| Gains/(losses) on revaluation of fixed assets | - | - | - | - | - | - | ||
| Net investment in funds | (11,077) | (22,164) | 6,971 | - | (26,270) | (14,282) | ||
| Total funds brought forward from last year | 9,431,739 | 30,011 | - |
- | 9,461,750 | 9,476,032 | ||
| Total funds carried forward at end of year | 9,420,662 | 7,847 |
6,971 |
- |
9,435,480 | 9,461,750 |
For information only: Money received and passed on to External Organisations
| Balance still to be paid Balance brought forward from last year Offerings/Gifts - received for External Organisations Offerings/Gifts - passed to External Organisations |
(110) | 87 | |
|---|---|---|---|
| (5,316) | (4,691) | ||
| 5,003 | 4,494 | ||
| (423) | (110) |
The notes on pages 11 to 16 form part of these accounts.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
Church No. 35/33
LOUGHTON METHODIST CHURCH
BALANCE SHEET
AS AT 31 AUGUST 2023
General Fund Designated Other Funds Endowment Total Total Notes (Unrestricted) Funds (Restricted) Funds 2023 2022 (Unrestricted) £ £ £ £ £ £ ~~eee~~ Tangible Fixed Assets Church Property and other fixed assets 12 9,247,585 - - - 9,247,585 9,180,096 Investment properties - - - - - - Investments - - - - - - Total fixed assets 9,247,585 - - - 9,247,585 9,180,096 Debtors and Prepayments 13 50,803 - 52,577 - 103,380 18,268 Central Finance Board and Trustees for Methodist Church Purposes deposits etc 14 66,774 - - - 66,774 58,338 Cash at Bank and in hand 15 83,485 7,847 4,684 - 96,016 219,535 Total current assets 201,062 7,847 57,261 - 266,170 296,141 ~~= aencn=~~ Creditors and Accruals (due in ~~eee~~ under one year) 16 27,985 - 50,290 - 78,275 14,487 Net current (liabilities)/assets 173,077 7,847 6,971 - 187,895 281,654 Total assets less current liabilities 9,420,662 7,847 6,971 - 9,435,480 9,461,750 Long term liabilities Loans to the Church - - - - - - Grants Payable 17 - - - - - - Other liabilities due after one year - - - - - - Net assets 9,420,662 7,847 6,971 - 9,435,480 9,461,750 ~~—==—=~~ Funds of the Church General Fund (Unrestricted) 18 9,420,662 - - - 9,420,662 9,431,739 Designated Funds (Unrestricted) 18 - 7,847 - - 7,847 30,011 Total Unrestricted funds 9,420,662 7,847 9,428,509 9,461,750 Other Funds (Restricted) 18 - - 6,971 - 6,971 - Endowment Funds (Restricted) 18 - - - - - - Total Restricted funds 6,971 6,971 - Total Funds 9,420,662 7,847 6,971 - 9,435,480 9,461,750 ~~=a~~ 28/6/2024 Approved by the managing trustees on …............................................................................. and signed on their behalf by: …………………………………………….
Martin Howarth
Treasurer
The notes on pages 11 to 16 form part of these accounts.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 AUGUST 2023
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 to charities 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 2023, 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.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 AUGUST 2023
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 their estimated useful life of either four or ten 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.
xiii Financial Instruments
The Church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
xiv Church information
The Loughton Methodist Church is an unincorporated Charity in England and Wales. The principal correspondence address is 260 High Road, Loughton, Essex IG10 1RB. The Church’s objectives and activities are detailed in the Trustees' Report.
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 AUGUST 2023
| 2 | Donations and legacies | 2022-23 | 2021-22 | |
|---|---|---|---|---|
| Donation and gift day | 6,703 | 16,876 | ||
| Donation (Flower fund) | 519 | 278 | ||
| Church Vision Fund | 3,000 | - | ||
| Special donations | 25,000 | - | ||
| Bosnia Fund | 3 | 12 | ||
| Café refurbishment donations | 2,267 | - | ||
| Cheerful Giving - Children | R | 2,320 | - | |
| Cheerful Giving - Building for future | R | 2,364 | - | |
| Cheerful Giving - Calling and vision | 663 | - | ||
| Property project fund - Various donations | - | 465 | ||
| Trinity donation for development | - | 30,000 | ||
| 42,839 | 47,631 | |||
| 3 | Other income | 2022-23 | 2021-22 | |
| Welcome area receipts | 24,981 | 20,627 | ||
| Children youth and families | 12 | - | ||
| Bookstall fund | 60 | 999 | ||
| Holiday club | 2,015 | 1,673 | ||
| Falcon's flight | - | 1,751 | ||
| Trinity - Street party | - | 236 | ||
| 27,068 | 25,286 | |||
| 4 | Offerings and tax recoverable | 2022-23 | 2021-22 | |
| Offerings | 72,579 | 71,168 | ||
| Tax recoverable | 13,754 | 14,348 | ||
| 86,333 | 85,516 | |||
| 5 | Grants and donations received | 2022-23 | 2021-22 | |
| Art Council grant | - | 10,000 | ||
| Grant - Epping Forest District Council | 2,875 | 2,875 | ||
| Grant - DAF and Circuit re café refurbishment | R | 19,710 | - | |
| 22,585 | 12,875 | |||
| 6 | Grants and donations paid | 2022-23 | 2021-22 | |
| Donations paid | 5,020 | 4,560 | ||
| Contributions to Connexional and circuit funds | 750 | 1,560 | ||
| 5,770 | 6,120 |
Page 13
DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 AUGUST 2023
| 7 Salaries and associated costs Gross Pay Employer's National Insurance Contribution Employer's pension contribution to the defined benefit scheme Back pay for 2022/23 Apprentiship levy Administration cost |
2022-23 2021-22 78,641 74,772 5,913 5,240 4,663 4,470 1,669 - 393 374 480 480 |
|---|---|
| 91,759 85,336 |
The average monthly number of staff employed during the year was 4 (2022: 4). There were no employees whose annual emoluments were £60,000 or more.
None of the trustees have been paid any remuneration or received any other benefits from an employment with the Church nor received payment for expenses.
Pension costs
The total pension cost for the Church for the year ended 31 August 2023 was £4,663 (2022: £4,470). There were no outstanding or prepaid pension contributions at 31 August 2023 (2022: £Nil).
| 8 Property costs Church repairs Accident costs Insurance and utilities Property management and cleaning Heat and light Café refurbishment 9 Office expenses Telephone Computer expenses Copier expenses Postage and stationery 10 Other expenditure Pastoral work Sundries (incl bank charges) Training cost Welcome area cost Flower fund Life works - Falcon Flight Youth work projects Holiday club money Minister's discretionary fund Trinity - Expenses Trinity - Publicity 11 Fees for examination or audit of the accounts Auditors' fees Other fees (e.g.: advice, accountancy services) |
2022-23 2021-22 15,834 13,414 - 703 14,445 5,694 23,336 21,336 10,633 13,093 11,835 - |
|---|---|
| 76,083 54,240 |
|
| 2022-23 2021-22 1,161 1,603 870 839 4,733 3,558 1,594 1,329 |
|
| 8,358 7,329 |
|
| 2022-23 2021-22 2,799 3,835 222 159 233 385 7,626 6,494 466 389 - 11,825 1,139 915 2,002 - 60 - 285 949 487 511 |
|
| 15,319 25,462 |
|
| 2022-23 2021-22 2,679 2,548 1,725 1,640 |
|
| 4,404 4,188 |
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DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 AUGUST 2023
12 Total Tangible Fixed Assets
| Cost or valuation Balance at 1st Sept 2022 Additions in the year Write off in the year Revaluations in the year Balance at 31st August 2023 Depreciation Balance at 1st Sept 2022 Charge in the year Depreciation on write off Balance at 31st August 2023 Net Book Value @ 31 August 2023 Net Book Value @ 31 August 2022 |
Land and Other Total Buildings Fixed Assets 9,159,064 155,562 9,314,626 - 85,552 85,552 - - - - - - |
|---|---|
| 9,159,064 241,114 9,400,178 |
|
| - 134,530 134,530 - 18,063 18,063 - - - |
|
| - 152,593 152,593 |
|
| 9,159,064 88,521 9,247,585 |
|
| 9,159,064 21,032 9,180,096 |
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 2023 were for purposes required during 2023-24.
| Circuit assessment paid in advance Other debtors Gift Aid tax refund due Deposit paid for Iona trip Grants receivable Total Prepayments and accrued income |
2022-23 2021-22 18,833 17,899 - 369 14,147 - 400 - 70,000 - |
|---|---|
| 103,380 18,268 |
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.
15 Central Finance Board (CFB) and cash at bank
The Church has one current account with Barclays Bank Plc, Central Finance Board of the Methodist Church "CFB", two accounts with CAF Bank and one deposit account 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.
Page 15
DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 AUGUST 2023
16 Creditors and accrued expenses
| Audit and accountancy fees Owed to other charity Cleaning accruals Electricity and gas accruals Clean air system accruals (final 10%) EBAC Grant - Livestreaming Deferred grant income |
2022-23 2021-22 4,404 4,188 423 111 1,651 1,563 12,764 - 2,993 - 5,750 8,625 50,290 - |
|---|---|
| 78,275 14,487 |
17 Grant commitments
There were no future commitments at 31 August 2023
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.
| Project General Funds - Unrestricted For use at the discretion of the trustees in the furtherance of 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 deed to that purpose alone. Other Funds - Restricted For specific purposes and restricted by document or deed to that purpose alone. |
2022-23 | 2021-22 |
|---|---|---|
| 9,420,662 7,847 6,971 |
9,431,739 30,011 - |
|
| 9,435,480 | 9,461,750 |
19 Transfer between funds
| Transfer between funds | ||
|---|---|---|
| 2022-23 | 2021-22 | |
| Designated funds | 22,320 | - |
During the year funds were transferred from the Trinity Church's National Westminster Bank reserve account into CAF bank (General fund) to pay for the installation of boiler at Trinity church.
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.
21 Related Party Transaction
Loughton Methodist Church is part of the Forest Methodist Circuit and The London District and is also accountable to the Methodist Conference, the ultimate controlling body. Related parties also include Ministers, other Churches and Circuits, Central Finance Board of the Methodist Church and The Trustees for Methodist Church Purposes (“TMCP”).
During the year, the Church was awarded a grant of £50,000 (2022: £Nil) from Forest Methodist Circuit and £20,000 (2022: £Nil) from The London District of the Methodist Church towards the cost of the cafe and welcome area refurbishment. Included in debtors at the balance sheet date is £50,000 (2022: £Nil) owed from Forest Methodist Circuit and £20,000 (2022: £Nil) owed from The London District of the Methodist Church.
Page 16
DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
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 .
Signature of Treasurer
Name Date Martin Howarth 28/6/2024 ~~a~~
Address 16 Marjorams Avenue, Loughton, Essex IG10 1PT ~~oo~~
Presentation to the Church Council for approval.
I confirm that the Accounts have been ~~or will be (*)~~ presented to the Church Council on
20th October 2022 and were ~~or will be ()~~ approved on 20/10/22 Signature of the Chair of the meeting Name of the Chair of the meeting Rev Sue Creighton* ~~|~~ Date 1/7/2024 ~~—~~
- Delete as appropriate
Page 17
DocuSign Envelope ID: 0FE7F847-00E1-4EEE-A056-D594F38F6F64
LOUGHTON METHODIST CHURCH
TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2023
| 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 |
| Stephen | Murray |
| Julie | Maule |
| Paul | Hay |
Page 18