## **Church Accruals Accounts 2020-2021** 

# **THE METHODIST CHURCH REPORT AND ACCOUNTS** 

# **(ACCRUALS BASIS) for the year ended 31 August 2021** 

# **The Methodist Church - Letchworth Garden City** 

**(incorporating Central and Norton Methodist Churches)** 

**Registered Charity - Registration number 1127225** ~~OT~~ 

|**Circuit No:**<br>**34/15**<br>**North Hertfordshire Circuit**<br>~~ee~~|**Circuit No:**<br>**34/15**<br>**North Hertfordshire Circuit**<br>~~ee~~|**Circuit No:**<br>**34/15**<br>**North Hertfordshire Circuit**<br>~~ee~~|**Circuit No:**<br>**34/15**<br>**North Hertfordshire Circuit**<br>~~ee~~|**Circuit No:**<br>**34/15**<br>**North Hertfordshire Circuit**<br>~~ee~~|
|---|---|---|---|---|
||**Minister:**|Reverend Malcolm Peacock|||
||||||
||**Church Stewards:**|Jonathan Battarbee|||
|||Vida Blankson|||
|||Roger Harrison|||
|||George Mather|||
|||Sarah Peacock|||
|||Vivien Storey|||
|||Valerie Mumford|||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||**Church Treasurer:**|John Sharman|||



Page 1 



## **The Methodist Church - Letchworth Garden City TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021** 

## **Introduction** 

## **Structure, governance and management:** 

We are governed according to the "Constitutional Practice and Discipline of the Methodist Church". Within the Methodist Church we belong to the North Hertfordshire Circuit, which in turn is part of the Bedfordshire, Essex & Hertfordshire District. 

Our governing body is the Church Council, which meets twice yearly usually in February and October. Trustees are generally appointed ex officio from leadership of various Church organisations, with provision for six others. There are committees to oversee Finance and Property, Outreach and Pastoral matters with social and other events organised by the Church Leadership Team. 

## **Aims and objectives:** 

Our objectives are in line with those of the Methodist Church which are: - 

**Worship -** The Church exists to increase awareness of God’s presence and to celebrate God’s love. **Learning & Caring -** The Church exists to help people to grow and learn as Christians, through mutual support and care. 

**Service -** The Church exists to be a good neighbour to people in need and to challenge injustice. **Evangelism -** The Church exists to make more followers of Jesus Christ. 

## **COVID-19 Context:** 

COVID-19 has obviously continued to have a huge impact on the normal activities of the Church.  At times during the 2020/21 year, when restrictions allowed, we managed to conduct live services. However, with a potentially vulnerable congregation and extensive reticence to return to live worship whilst restrictions on singing and socialising remained in place, we have continued our online worship offering.  As a church we have therefore been indebted to many people over the year who have enabled us to function in these unusual circumstances, especially those with a technical mastery of Zoom and the knowledge of how to edit recorded services for distribution via CD or posting on the church web-site. 

The Church has also benefited from those who have volunteered to take on the role of COVID-19 lead, providing advice and guidance on what is possible in terms of our church buildings, and those who have provided oversight of our buildings when they have been closed. 

Page 2 



**Review of the year:** 

In the summer of 2020 we made the decision to reopen our church buildings as our new church year began in September 2020.  Having done so, we were able to hold live 09:30 services on a weekly basis throughout the Autumn, alternating between our two sites (Norton and Central).  Some limited letting of the properties was also possible during this period, albeit under strict COVID-19 protocols which, amongst other things, precluded any use of kitchen facilities. 

The 09:30 live services were overseen by stewards and COVID-19 duty volunteers to ensure that COVID-19 risk assessments were adhered to.  Congregants were also required to pre-book attendance at services during this period.  Despite the support of nearly 30% of the congregation for services to be held “live” when the question was put to the congregation in the summer, attendance at the live services in the Autumn was very low, especially at Central.  The Stewards discussed whether live services should continue at Central during the pandemic and agreed to keep this under review and consider alternative options.  This review was interrupted by the increase in COVID-19 cases, and the change in circumstances this generated. 

As COVID-19 numbers, and associated restrictions, increased during December 2020 it was deemed appropriate to cancel / reschedule some live services and the last live service held was the Christmas Eve Communion service.  With the initiation of the lockdown in January 2021 our buildings were once again shut down and we reverted to 100% on-line services right through to May 2021. Thereafter live services were available twice a month at Norton, however the Central building was not reopened for services until July 2021.  The decision to re-open the churches at different times was driven by the requirements and wishes of the congregations – those who regularly attended worship at Norton were less likely to engage in on-line services so wished for an early return to live worship once COVID restrictions were eased, however a survey of the Central congregation carried out in May 2021 indicated that they were more inclined to continue to take advantage of virtual services until such time as singing was allowed and restrictions on mask wearing and socialising were lifted. 

When Central reopened we tried to provide hybrid services i.e. live in the church but available on Zoom to those who wished to remain at home.  Unfortunately issues with technology and broadband / wi-fi speed within the church meant that our efforts were only partially successful and we had to revert to on-line services only again for most of August. 

Throughout the period that our churches were closed in 2020/21 Zoom services took place, with weekly 10:45 services and monthly 08:30 breakfast services.  In contrast to the Autumn 2020 live services, Zoom services continued to attract good numbers especially to the 10:45 service.  We were joined on occasion by people from different parts of the country, and some congregants who didn’t engage with Zoom services during lock-down one did try them out during lock-down two.  The 10:45 service was recorded for posting on the church website, and CDs were produced and delivered to recipients by a willing group of volunteers. 

The COVID-19 restrictions had implications for our normal celebrations of Christmas and Easter when we were restricted to on-line services, however our band / choir were able to record carols and hymns for use in the services.  We were also able to create daily reflections which were circulated electronically for use during Advent and Lent.  Hard copies were produced for those without access to email and these were widely appreciated by our own congregation and congregations further afield. 

We offered Zoom junior church on a fortnightly basis thanks to volunteer leaders and safeguarders. Our Brigades operated on a Friday evening via Zoom and both the Awards Evening and Enrolment service also took place via Zoom.  These events were well supported by the Brigaders’ family members and members of the wider congregation.  Brigades met face to face again, but outdoors only, from June until the summer break. 

Page 3 



## **Review of the year: (Continued.)** 

In place of bible study groups taking place in people’s houses, one of our lay preachers organised a dispersed house group, providing study materials that people could look at in their own homes but ideally at the same time as others. 

In terms of pastoral care, whilst face to face opportunities were limited for much of the year, considerable work continued via phone and through the distribution of CDs, service transcripts, and notice sheets.  In addition, we had daily 1 pm lunch time meetings, Wednesday evening social events, and “coffee” after our 10:45 service via Zoom.  Our fellowship and support groups (Thursday Afternoon Fellowship at Central and Butterfly Club at Norton) met when restrictions allowed and were appreciated by those who took advantage of the opportunities for face-to-face contact.  As a church we are grateful to the people who work so dedicatedly to ensure that our congregation are cared for and supported. 

With the Norton building reopening from June we were able to restart the Norton toddlers' group (“Little Squirrels”) with a restriction on numbers.  The group is at capacity and has a waiting list. Letting of our church buildings recommenced after lockdown two in the summer of 2020 with those using the premises having to submit COVID risk assessments prior to permission being granted. 

## **Plans for 2021-22** 

The COVID pandemic will undoubtedly impact us as a church in to the 2021/22 year as infection rates are expected to rise over the winter period, with the prospect of associated restrictions.  With a vulnerable congregation to consider, there is a desire to try to solve our IT issues in order to be able to fully offer hybrid worship, enabling those who are comfortable to return to live worship to do so whilst not excluding those who are more cautious, or no longer well enough to attend church in person. 

Whilst we are allowed to, we intend to continue to hold live worship on both of our sites, and we hope to see a continued gradual return of pre-COVID activities.  For example, our toddler group at Central is re-opening early in 2021/22 and we also plan to open Little Squirrels at Norton on a second morning per week, subject to sufficient volunteers being available. 

In the Spring we hope to hold a service of remembrance for all those associated with the church who have died during the COVID pandemic period, many of whom died when our church buildings were closed, or when restrictions on numbers were in place, meaning we were unable to hold normal services of thanksgiving at the time of their deaths. 

We are planning a more traditional Christmas in terms of the services we offer in 2021 but our church stewards, our COVID lead, and our property stewards continue to review the situation and amend our risk assessments according to circumstances.  These risk assessments dictate what we are and aren’t allowed to do. 

**Financial Review:** 

Total income £147.8K (2019-20 £122.2K) was impacted by COVID-19 curtailing our activities, including property lettings but offset by legacies £41K received during the year (2019-20  £0K). Expenditure £106.8K was contained by good housekeeping, restricting property maintenance and improvements (2019-20 £116.8K). This produced a surplus of £40.9K (2019-20 £5.4K). The readily available reserves carried forward amount to £399.2K (2019-20 £358.3K). The Trustees have every reason to believe that the Church is a going concern as there are sufficient members and supporters contributing regularly to meet commitments and liabilities. The Church owns the freehold properties of Central Methodist Church and Norton Methodist Church. Other investments are held in cash deposits which are readily available reserves. There were no unrealised gains. 

Page 4 



## **The Methodist Church - Letchworth Garden City** 

## **Trustee’s Annual Report on Finance and Governance** 

## **Basis of preparation and legal framework** 

The Charity’s annual report and accounts for the year ended 31 August 2021 have been prepared in accordance with SORP(FRS102) as updated, being the current version of Accounting and Reporting by Charities: Statement of Recommended Practice. 

Full Name of Charity/Church: **The Methodist Church - Letchworth Garden City** 

_formerly known as Central Methodist Church - Letchworth Garden City_ 

Registration Charity Number: 1127225 

Date of original registration: 17 December 2008 Name change effective:         01 September 2018 

Main communication address: Central Methodist Church, Pixmore Way, 

The members of The Methodist Church - Letchworth Garden City **Church Council** are the Charity Trustees, who normally meet two times each year in February and October. Membership is made up of church office holders, Minister and  representatives appointed by the church at the Annual Church Meeting. 

Full list of Church Council members and key lay employees are shown on page 8 of this report. 

Treasurer:                                  John Sharman 

Independent examiner:      Christopher Maylin FCA 

Investment Bankers:           Central Finance Board of the Methodist Church Trustees for Methodist Church Purposes 

Page 5 



## **The Methodist Church - Letchworth Garden City** 

## **Aims and organisation** 

Our mission is to be a powerful spiritual influence in the community and a visible expression of God’s inclusive love. We aim to achieve this by encouraging worship, social, and outreach activities that currently exist, and seeking new ways to extend to others the fellowship of the Church family. We aim to be: 

A Church that welcomes people. 

A Church that believes in discipleship and mission. 

A Church that does ecumenism. 

A Church that rejoices in introducing people to Jesus Christ 

A Church that does not mind which church you go to as long as you go. 

Through these, we seek to develop the life of the Church in Letchworth Garden City. 

The purposes of the Methodist Church are and shall be deemed to have 

been since the Date of Union the advancement of: 

a) The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church; 

b) Any charitable purpose for the time being of any Connexional, District, Circuit. local or other organisation of The Methodist Church; 

c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church; 

d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church 

Worshiping God through prayer, song and other worship activities. The organisation and resourcing of regular public acts of worship open to members of the church and non members alike. 

The teaching and learning of the Christian faith through sermons, courses and small groups. 

The resourcing of pastoral work including visiting the sick and bereaved. 

Taking religious assemblies in local schools. 

Promotion of Christianity through the staging of events and services. 

Provision of chaplaincy services to local schools, care homes and other institutions as appropriate and when able. 

## **Public Benefit** 

We confirm the trustees have had regard to the Charity Commission’s guidance on public benefit. 

## **Structure, Governance and Management** 

The governing document for the Church is the Deed of Union (1932) and Methodist Church Act (1976) 

Detailed governance arrangements are outlined within the Constitutional Practice and Discipline of the Methodist Church by order of the annual conference (CPD). 

Day to day management of the church is undertaken by the Church Leadership team along with the Minister. 

The Trustees are appointed at the Annual Church Meeting. 

Page 6 



## **The Methodist Church - Letchworth Garden City** 

## **Trustees' Responsibilities** 

For each financial year ending on 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 and to prepare an annual report for that year. In preparing these financial statements, the Trustees have: 

- selected suitable accounting policies and applied them consistently using the accruals method 

- made judgements and estimates that are reasonable and prudent 

- followed the applicable SORP and accounting standard, SORP(FRS102) as updated 

- adopted the going concern basis 

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Church and enables them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Church and ensuring their proper application under charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Church's web site. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and trustees' reports may differ from legislation in other jurisdictions. 

Page 7 



## **The Methodist Church - Letchworth Garden City** 

## **CHURCH COUNCIL MEMBERSHIP & KEY LAY WORKERS** 

|MINISTER|Reverend Malcolm Peacock||Chair (ex officio)||
|---|---|---|---|---|
|LAY WORKERS|Hazel Beadle||||
|||Appointed||Appointed|
|CHURCH STEWARDS|Jonathan Battarbee|12/03/2011|George Mather|12/03/2011|
||Vida Blankson|13/05/2018|Valerie Mumford|05/02/2019|
||Roger Harrison|12/03/2011|Sarah Peacock|11/05/2014|
||||Vivien Storey|12/03/2011|



CHURCH SAFEGUARDING CO-ORDINATOR 

Pat Lander 

## OTHER MEMBERS OF THE CHURCH COUNCIL 

|||Appointed||Appointed|
|---|---|---|---|---|
|1.|Graham Albone|05/11/2018|13.Patricia Lander|12/03/2011|
|2.|Gail Aldridge|05/11/2018|14. Anita Latter|12/03/2011|
|3.|Katie Allwright|15/05/2016|15. David Latter|07/07/2019|
|4.|Muriel Anderson|12/03/2011|16. John McKean|12/03/2011|
|5.|Cheryl Bidnell|12/03/2011|17. Christopher Parker|12/03/2011|
|6.|Steven Brown|12/03/2011|18.David Rafferty|10/02/2015|
|7.|Linda Cain|05/11/2018|19. Jennifer Rogers|15/05/2012|
|8.|Rebecca Carter|03/02/2016|20.John Sharman|12/03/2011|
|9.|Christine Druce|12/03/2011|21.Paul Sharman|12/03/2011|
|10.|Neil Gibbens|17/01/2018|22.Sally Woodhouse|12/03/2011|
|11.|Kenneth Gibbs|12/03/2011|23.Susan Woodhouse|12/03/2011|
|12.|Malcolm Knowles|05/11/2018|24.Colin Yates|12/03/2011|



## **Trustee Training** 

A range of guidance produced by Methodist Connexion to support the effective running of the church and the role of Trustees is given to the Church Trustees at various meetings and/or training sessions. 

## **Related Parties** 

The Church is part of the North Hertfordshire Circuit, which is part of the Bedfordshire, Essex and Hertfordshire District and is also accountable to the Methodist Conference. None of the trustees made a gift of land or substantial other asset to the Church during the year or seek to influence the Trustees. 

**Internal organisations** linked to this church are: 

1st Letchworth Garden City Boys' Brigade 2nd Letchworth Garden City Girls' Brigade Butterfly Club Central Band Central Tea & Toddlers Little Squirells Toddler Group Lunch @ Norton 

Page 8 



**The Methodist Church - Letchworth Garden City** 

## **Risk Management** 

The major risks have been identified and recorded by the Trustees with professional advice taken as required. There is a regular annual review process undertaken and recorded. 

Income and Expenditure is being monitored in total and is compared with the approved annual budget on a half yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves. 

## **Safeguarding** 

Every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. Christians see this potential as fulfilled by God’s re-creation of us in Christ. Among other things this implies a duty to value all people as bearing the image of God and therefore to protect them from harm. 

Methodist Connexional practice outlines commitment to the following principles: 

- the care and nurture of, and respectful pastoral ministry with, all children, young people and adults 

- the safeguarding and protection of all children, young people and adults when they are vulnerable 

- the establishing of safe, caring communities which provide a loving environment where there is informed vigilance as to the dangers of abuse. 

- We will carefully select and train all those with any responsibility within the Church, in line with Safer Recruitment principles, including the use of criminal records disclosures and registration with the relevant vetting and barring schemes. 

- We will respond without delay to every complaint made which suggests that an adult, child or young person may have been harmed, cooperating with the police and local authority in any investigation. 

- We will seek to work with anyone who has suffered abuse, developing with them an appropriate ministry of informed pastoral care. 

- We will seek to challenge any abuse of power, especially by anyone in a position of trust. 

- We will seek to offer pastoral care and support, including supervision and referral to the proper authorities, to any member of our church community known to have offended against a child, young person or vulnerable adult. 

- In all these principles we will follow legislation, guidance and recognised good practice 

The Methodist Church Letchworth Garden City commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches. 

The Methodist Church Letchworth Garden City commits itself to the provision of support, advice and training for lay and ordained persons that will ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable. 

## **Reserves Policy** 

The Reserves Policy for the Church is to hold a minimum sum equivalent to six months’ average expenditure. The Designated Property Fund should be sufficient to meet any unforeseen item of major expenditure on the church building to be able to continue, in the short term, funding planned activities in the event of any inability to raise the full expenses including the assessment payable to the Circuit. 

We have only one direct employee below NI/tax threshold and therefore no requirement to provide for redundancy. 

Page 9 



**The Methodist Church - Letchworth Garden City** Registration Charity Number: 1127225 

## **Statement of Financial Activities (SOFA) for the year ended 31 August 2021** 

||**Notes to the**<br>**accounts**|**Unrestricted**<br>**funds**|**Restricted**<br>**Funds**|**Total**<br>**2020-21**|**Total**<br>**2019-20**|
|---|---|---|---|---|---|
|||£|£|£|£|
|**Income and Endowments from:**||||||
|**Donations and legacies**|4|||**135,385**|**89,000**|
|- Collections and Gift Aid||71,155|-|71,155|76,328|
|- Donations||23,230|-|23,230|12,672|
|- Legacies|||41,000|41,000|-|
|**Charitable activities**|5||**-**|**588**|**-**|
|- Fund raising|||-|-|-|
|- Other||452|136|588|-|
|**Other trading activities**|6|**-**|**-**|**9,706**|**27,331**|
|- Lettings||9,706|-|9,706|27,249|
|- Miscellaneous|||-|-|82|
|**Investments**|7, 13|||**-**|**2,432**|
|**Other**|8|**-**|**-**|**2,076**|**3,443**|
|- Internal organisations|18|2,076|-|2,076|2,656|
|- Miscellaneous|||-|-|787|
|**Total**||**106,619**|**41,136**|**147,755**|**122,206**|
|**Expenditure on:**||||||
|Salaries, NIC & Pension costs|||-|-|-|
|Circuit Assessment||70,242|-|70,242|79,220|
|Maintenance on Church building(s) and property|11|18,091|-|18,091|12,980|
|Telephone and Travel||-|-|-|-|
|Utilities (insurance,  heat and light, water, etc)||8,605|-|8,605|11,645|
|Expenditure on other property||-|-|-|-|
|Depreciation|12|-|-|-|-|
|Provisions||-|-|-|-|
|Internal organisations|18|2,781|-|2,781|3,548|
|Grants and  Donations|19|5,850|-|5,850|6,007|
|Other expenditure||1,209|35|1,244|3,414|
|**Total**||**106,778**|**35**|**106,813**|**116,814**|
|**Other recognised gains / (losses):**||||||
|Gains/(Losses) on revaluation of fixed assets||||-|-|
|Gains/(Losses) on investment assets|||||-|
|Actuarial gains /(losses) on defined benefit pension<br>schemes||||-|-|
|**Net income/(expenditure)**||**159**<br>**-**|**41,101**|**40,942**|**5,392**|
|**Transfers between funds**|18|4,592|4,592<br>-|-|-|
|**Net movement in funds**||**4,433**|**36,509**|**40,942**|**5,392**|
|**Reconciliation of funds:**||||||
|Total funds brought forward||340,613|3,017,670|3,358,283|3,352,891|
|**Total funds carried forward**||**345,046**|**3,054,179**|**3,399,225**|**3,358,283**|
|**Balance brought forward from last year**<br>Offerings/Gifts - received for  External Organisations<br>Offerings/Gifts - passed to  External Organisations<br>**Balance carried forward**<br>Page 10||||||
|||||**225**|**258**|
|||||6,877|4,397|
|||||7,095|4,430|
|||||**7**|**225**|





## **The Methodist Church - Letchworth Garden City** 

Registered Charity No. 1127225 

## **Balance Sheet as at 31 August 2021** 

|**Tangible Fixed Assets***<br>**Notes**|**Tangible Fixed Assets***<br>**Notes**|**Unrestricted**<br>**£**|**Designated**<br>**(Unrestricted)**|**Restricted**<br>**£**|**Totals this year**<br>**£**|**Totals this year**<br>**£**|**Totals last year**<br>**£**|
|---|---|---|---|---|---|---|---|
|||||||||
|Land & Buildings|12|||3,000,000|3,000,000||3,000,000|
|Equipment||||||||
|Investmentproperties||||||||
|Investments||||||||
|**_Total fixed assets_**||||3,000,000|3,000,000||3,000,000|
|**Current Assets**||||||||
|Debtors and Prepayments|14|5,300|445||5,745||6,611|
|Cash at Bank and in hand|14|3,589|1,802||5,391||1,216|
|Trustees for Methodist Church<br>Purposes||||54,179|54,179||17,670|
|Central Finance Board||77,896|256,098||333,994||333,527|
|Other||||||||
|**_Total current assets_**||86,785|258,345|54,179|399,309||359,024|
|**Current Liabilities**||||||||
|**Creditors and Accruals (due in**<br>**under 1 yr)**|15||84||84||741|
|||||||||
|**Net current assets (liabilities)**||86,785|258,261|54,179|399,225||358,283|
|**_Total assets less current liabilities_**||||||||
|**_Total assets less current liabilities_**||86,785|258,261|3,054,179|3,399,225||3,358,283|
|||||||||
|**Loans and creditors due after 1year**|17|||||||
|Provisions for liabs. and charges|17|||||||
|**_Net assets_**<br>**Funds of the Church**<br>18||||||||
|||86,785|258,261|3,054,179|3,399,225||3,358,283|
|||86,785<br>258,261||||||
|Unrestricted funds||86,785|258,261||345,046||340,613|
|Restricted funds|_18_|||3,054,179|3,054,179||3,017,670|
|**_Total Funds_**||86,785|258,261|3,054,179|3,399,225||3,358,283|



*Details - see Note 12 

Page 11 



**The Methodist Church - Letchworth Garden City** 

**Notes to the Accounts** 

## **1.   Basis of accounting** 

The financial statements have been prepared in accordance with SORP(FRS102) as updated, being the current version of Accounting and Reporting by Charities: Statement of Recommended Practice. 

## **2.   Funds** 

The funds held constitute: General Funds held for any purpose of the Church which are Unrestricted.  Restricted funds which are held for a narrower purpose including those for internal organisations. There are no  Endowment funds. Details of each material fund are disclosed in note 18.  Any funds may be represented by more than just cash. 

## **3.   Accounting policies** 

## **Basis** 

**h h b d h b i f hi i l h i h h i k l** These accounts have been prepared on the basis of historical cost except that investments are 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. 

## **Income** 

Income is included in the Statement of Financial Activities (SOFA) when the Church becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and  the monetary value can be measured with sufficient reliability. 

## **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. 

## **Grants** 

Grants made by the Church from its own funds are recognised in full at the time of agreement or when the Church accepts that there is a legal or operational obligation to make the payment.  When the grant is recurrent over more than one year the balance payable in future years is treated as a provision for future commitments in the Balance Sheet against the appropriate fund, the provision being released in future years as instalments are paid in accordance with the originally agreed terms. 

## **VAT** 

Since the Church is not VAT registered, all input VAT is charged with the expenses to which it refers. 

## **Tangible fixed assets for use by the Church** 

These are capitalised if they can be used for more than one year, and individually cost at least £1,000. The freehold property is shown at estimated market value. 

## **Investment Properties** 

Investment properties - no property is currently deemed to be held as an investment for the long term purposes of the charity. 

## **Investments** 

Investments are valued in the balance sheet at market value at the year end.  Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA. 

## **Debtors and Prepayments** 

Debtors include outstanding lettings invoices in August and the amount of Gift Aid accrued but not yet claimed. 

## **Creditors** 

Creditors include outstandings relating to utilities and repairs etc. in August. 

Page 12 



|**4.   Donations and legacies**<br>Collections<br>Gift Aid<br>Donations<br>Legacies<br>**Total**<br>**5.   Charitable activities**<br>Fund raising<br>Other<br>**Total**<br>**6.   Other trading activities**<br>Lettings<br>Miscellaneous<br>**Total**<br>**7.   Investment income**<br>Central Finance Board<br>Other<br>**Total**<br>**8.   Other**<br>Internal Organisations<br>Miscellaneous<br>**Total**|**The Methodist Church - Letchworth Garden City**|
|---|---|
||71,155<br>-<br>71,155<br>82,701<br>23,230<br>23,230<br>16,079<br>-<br>41,000<br>41,000<br>7,200|
||**94,385**<br>**41,000**<br>**135,385**<br>**105,980**|
||**Unrestricted**<br>**Restricted**<br>**2021**<br>**Total**<br>**2020**<br>**Total**<br>**£**<br>**£**<br>**-**<br>-<br>452<br>136<br>**588**<br>4,730|
||**452**<br>**136**<br>**588**<br>**4,730**|
||**Unrestricted**<br>**Restricted**<br>**2021**<br>**Total**<br>**2020**<br>**Total**<br>£<br>£<br>**£**<br>**£**<br>9,706<br>9,706<br>42,133<br>-<br>-<br>400<br>**-**<br>-<br>**-**<br>-|
||**9,706**<br>**-**<br>**9,706**<br>**42,533**|
||**Unrestricted**<br>**Restricted**<br>**2021**<br>**Total**<br>**2020**<br>**Total**<br>£<br>£<br>**£**<br>**£**<br>-<br>2,051<br>-<br>167|
||**-**<br>**-**<br>**-**<br>**2,218**|
||**Unrestricted**<br>**Restricted**<br>**2021**<br>**Total**<br>**2020**<br>**Total**<br>£<br>£<br>**£**<br>**£**<br>2,076<br>2,076<br>5,893<br>-<br>-<br>**-**<br>**-**<br>**-**|
||**2,076**<br>**-**<br>**2,076**<br>**5,893**|



Page 13 



## **9.   Payment to Trustees** 

|£<br>Number of trustees who were paid expenses<br>Nature of the expenses<br>Total amount paid<br>£<br>£<br>**Staff Costs paid during the year were:**<br>Gross wages, salaries and benefits in kind<br>Employer’s National Insurance costs<br>Pension costs<br>Total staff costs<br>**Average number of staff  employed during the year were:**<br>**.**<br>Payments made to trustees for additional services provided to the Church by agreement with the<br>Church Council Meeting<br>£<br>Independent examiner’s or auditors' fees  for reporting on the accounts<br>Other fees (eg: advice, accountancy services) paid to the independent examiner or auditor<br>No expenses were paid to Trustees.<br>£<br>£<br>£<br>**11.  Paid employees (cost shown in the SoFA as part of Maintenance on Church buildings and property)**<br>**10.   Fees for examination or audit of the accounts**<br>£|**This year**|**This year**|**Last year**|
|---|---|---|---|
||Nil||Nil|
||Nil<br>Nil<br>Nil<br>Nil<br>2,205<br>Nil<br>Nil<br>2,205<br>0.186|||
||||Nil|
|||||
||||Nil|
|||||
||||Nil|
||||Nil|
|||||
||||3,269|
||||Nil|
||||Nil|
||||3,269|
|||||
||0.186||0.186|



**Note:** Maintenance on Church building(s) and property  includes the remuneration of a part-time cleaner who is self-employed and is not paid enough to require NI contributions or tax deductions. 

Page 14 



## **12.   Tangible Fixed Assets** 

Cost or valuation 

|**12.   Tangible Fixed Assets**<br>Cost or valuation||||||||
|---|---|---|---|---|---|---|---|
||**Church (non**<br>**investment)**<br>**land and**<br>**buildings**<br>**£**|**Other non**<br>**investment land**<br>**and buildings**<br>**£**|<br>**Investment**<br>**properties (land**<br>**and buildings)**<br>**£**|**Other fixed**<br>**assets including**<br>**motor vehicles**<br>**£**|**Fixtures, fittings**<br>**and equipment**<br>**£**|**Payments on**<br>**account and**<br>**assets under**<br>**construction**<br>**£**|**Total**<br>**£**|
|**Balance brought forward 01/09/2020**|3,000,000||||||3,000,000|
|Additions|||||||-|
|Revaluations(+/-)|||||||-|
|Disposals(-)|||||||-|
|Transfers *(+/-)|||||||-|
|Balance carried forward|3,000,000||||||3,000,000|



## **Accumulated depreciation** 

|**Accumulated depreciation**||||||||
|---|---|---|---|---|---|---|---|
|Balance brought forward 01/09/2020||||||||
|Depreciation charge foryear(-)||||||||
|Revaluations(+/-)||||||||
|Disposals(-)||||||||
|Transfers*(+/-)||||||||
|**Balance carried forward**||||||||
|**Net book amount**||||||||
|Brought forward|3,000,000|-|-|-|-||3,000,000|
|Carried forward|3,000,000|-|-|-|-||3,000,000|



*  The "transfers" row is for movements between fixed asset categories. 

**Note** : There is no depreciation provision on the church buildings as the impairment review at the end of the year judged the market value   to be greater than book value. 

Page 15 



## **The Methodist Church - Letchworth Garden City** 

## **13.   Investments** 

The investments that support the various funds are held by TMCP in The Trustees' Interest Fund on which interest is credited to the accounts each month.  These are regarded as medium and long term investments. 

TMCP is the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds.  Trust property is held for and on behalf of local Managing Trustees who are responsible for the day to day management of trust property.  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. 

## **Analysis of investment movements** 

|**This year**<br>**Prev year**<br>**£**<br>**£**<br>**Change in investment values**|**This year**<br>**Prev year**<br>**£**<br>**£**<br>**Change in investment values**|**This year**<br>**Prev year**<br>**£**<br>**£**<br>**Change in investment values**|
|---|---|---|
|Value at beginning of year|17,670|18,639|
|**Add:**additions|41,000||
|**Less:**withdrawals|4,592|-1,088|
|**Add:**Interest less administration|101|119|
|Value at end of year|**54,179**|**17,670**|



Page 16 



**The Methodist Church - Letchworth Garden City** 

## **14.   Analysis of current assets** 

|**Debtors and prepayments**<br>Other debtors (Property lettings)<br>**Total debtors and prepayments**<br>Accrued  income (HMRC Gift Aid accrued)<br>Pre paid assessments|**This year**<br>**£**<br>5,300<br>445<br>**5,745**|**Last year**<br>**£**|
|---|---|---|
||||
||5,300|6,500|
||445|111|
||**5,745**|**6,611**|



100% [2019-20: 100%] by value of the debtors brought forward at the beginning of the year have been recovered during the year. There have been no write-offs in the year 

## **Analysis of cash at bank** 

|Bank balance held in HSBC Letchworth Garden City branch<br>Bank balance held by Trustees for Methodist Church Purposes<br>Cash held by Central Finance Board of The Methodist Church|5,391||1,216|
|---|---|---|---|
||54,179||17,670|
||333,994||333,527|



## **15.   Analysis of current liabilities and long term creditors** 

Trade Creditors 

Other Creditors (inc. Utilities, property repairs and funds due to third parties 

## **Total Current Liabilities** 

||||
|---|---|---|
|84||741|
|**84**||**741**|



100% [2019-20: 100%] by value of the creditors brought forward at the beginning of the year have been paid during the year. 

## **16.   Capital commitments and contingent liabilities** 

At the 31 st August 2021  the Church had no capital commitments. 

No Contingent liabilities were identified at 31st August 2021. 

Page 17 



**The Methodist Church - Letchworth Garden City** 

## **17.   Loans and creditors due after one year** 

## **Loans** 

|**Loans**||||||
|---|---|---|---|---|---|
|**Source**|**Amount brought**<br>**forward**<br>**£**|<br> <br>**New**<br>**borrowings**<br>**£**|<br>**Loan interest**<br>**£**|<br>**Repayable in**<br>**the year       £**|**Balance at**<br>**year end**<br>**£**|
|Nil||||||
|||||||
|||||||
|||||||
||||||Nil|
|**Repayment due**|||||Totals|
|Due within 12 months||||||
|Due after more than 12 months||||||
|Total|||||Nil|



## **Purpose of loans** 

None 

## **Creditors due after one year** 

|**Name of creditor**|**Amount on**<br>**31-Aug-2020**|<br>**Amount on**<br>**31-Aug-2021**|
|---|---|---|
|Nil|||
||||
||||
||||
||||
|**Total**|Nil|Nil|



Page 18 



**The Methodist Church - Letchworth Garden City** 

## **18.   Detailed analysis of individual fund movements 2020-21** 

|**Unrestricted Funds**|||||||
|---|---|---|---|---|---|---|
|**Internal Organisations**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|Brigades Camp Fund|1,107|||||1,107|
|Brigades General Fund|1,864|837|1,554|||1,147|
|Child Sponsorship Fund|779|1,239|1,228|||790|
|Central Flower Fund|968|||||968|
|Central Tea & Toddlers|341|||||341|
|Sub totals|5,059|2,076|2,782|||4,353|
|**Other Funds**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|General Fund|87,410|73,688|74,415|||86,683|
|Norton Methodist Ch.|11,844|8,827|7,760|-3,000||9,911|
|Norton Comm. Centre|6,078|11,422|14,535|3,000||5,965|
|Organ Fund|20,090|||||20,090|
|Property Fund|210,132|17,709|14,389|4,592||218,044|
|Sub totals<br>**Total Unrestricted Funds**|335,554|111,646|111,099|4,592||340,693|
||||||||
||340,613|113,722|113,881|4,592||345,046|



|**Restricted Funds**|||||||
|---|---|---|---|---|---|---|
|**Fund Name**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|TMCP - Various Bequests|17,670|41,136|35|-4,592||54,179|
|Methodist Model Trust<br>Property|3,000,000|||||3,000,000|
|**Total Restricted Funds**|||||||
||3,017,670|41,136|35|-4,592||3,054,179|



**Note:** £4,492 was transferred from Bequests held by TMCP to fund lighting upgrade and contribution towards Lay Workers salary 

£35 expenditure represents TMCP administration charge 

## **Endowment Funds** 

|**Endowment Funds**|||||||
|---|---|---|---|---|---|---|
|**Restricted Fund Name**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|None|||||||
||||||||
|Totals|Nil|||||Nil|



Page 19 



## **The Methodist Church - Letchworth Garden City** 

## **18.   Detailed analysis of individual fund movements previous year 2019-20** 

## **Unrestricted Funds** 

|**Unrestricted Funds**|||||||
|---|---|---|---|---|---|---|
|**Internal Organisations**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|Brigades Camp Fund|1,057|375|325|||1,107|
|Brigades General Fund|2,247|1,223|1,606|||1,864|
|Child Sponsorship Fund|1,321|633|1,175|||779|
|Central Flower Fund|918|50|0|||968|
|Central Tea & Toddlers|408|375|442|||341|
|Sub totals|5,951|2,656|3,548|0|0|5,059|
|**Other Funds**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|General Fund|75,540|78,402|66,785|||87,157|
|Norton Methodist Ch.|13,504|11,489|9,151|-4,000||11,842|
|Norton Comm. Centre|9,810|11,170|18,901|4,000||6,079|
|Organ Fund|20,090|||||20,090|
|Property Fund|209,357|18,333|18,392|1,088||210,386|
|Sub totals<br>**Total Unrestricted Funds**|328,301|119,394|113,229|1,088|0|335,554|
||||||||
||334,252|122,050|116,777|1,088|0|340,613|



## **Restricted Funds** 

|**Restricted Funds**|||||||
|---|---|---|---|---|---|---|
|**Fund Name**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|TMCP - Various Bequests|18,639|156|37|-1,088||17,670|
|Methodist Model Trust<br>Property|3,000,000|||||3,000,000|
|Totals|3,018,639|156|37|-1,088|0|3,017,670|



**Note:** £1,088 was transferred from Bequests held by TMCP to fund capital projects £37 expenditure represents TMCP administration charge 

|**Endowment Funds**|||||||
|---|---|---|---|---|---|---|
|**Restricted Fund Name**|**Opening**<br>**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**<br>**gains/losses**|**Closing Balance**|
|None|||||||
||||||||
|Totals|Nil|0|0|0|0|Nil|



Page 20 



## **The Methodist Church - Letchworth Garden City** 

## **19.   Related party transactions** 

## **This year** 

|**This year**|||||||
|---|---|---|---|---|---|---|
|**Name of related**<br>**party**|**Relationship **|**Description of**<br>**transaction**|<br>**Income from**<br>**related party**<br>**during the**<br>**year**|**Payments to**<br>**related**<br>**party during**<br>**the year**|**Loans to /**<br>**(from)**<br>**related**<br>**party**<br>**during the**<br>**year**|**Amounts**<br>**owed by /**<br>**(to) related**<br>**party as on**<br>**31-Aug-**<br>**2020**|
||||**£**|**£**|**£**|**£**|
|Methodist Church<br>Fund|Connexional|Donation|Nil|410|Nil|Nil|
|Mission in Britain<br>Fund|Connexional|Donation|Nil|410|Nil|Nil|
|Fund for Support of<br>Presbyters &<br>Deacons|Connexional|Donation|Nil|550|Nil|Nil|
|Fund for Property|Connexional|Donation|Nil|410|Nil|Nil|
|World Mission Fund|Connexional|Donation|Nil|500|Nil|7|
|All We Can|Connexional|Donation|Nil|500|Nil|Nil|
|Methodist Homes|Connexional|Donation|Nil|250|Nil|Nil|
|**Total**|||**0**|3,030|**0**|**7**|
|Donations to unrelated parties:<br>Total grants and donations:||||2,820<br>5,850|||



Donations to unrelated parties: Total grants and donations: 

## **Last year** 

|**Last year**|||||||
|---|---|---|---|---|---|---|
|**Name of related**<br>**party**|**Relationship **|**Description of**<br>**transaction**|<br>**Income from**<br>**related party**<br>**during the**<br>**year**|**Payments to**<br>**related**<br>**party during**<br>**the year**|**Loans to /**<br>**(from)**<br>**related**<br>**party**<br>**during the**<br>**year**|**Amounts**<br>**owed by /**<br>**(to) related**<br>**party as on**<br>**31-Aug-**<br>**2019**|
||||**£**|**£**|**£**|**£**|
|JMA|Connexional|Donation|Nil|Nil|Nil|Nil|
|Methodist Church<br>Fund|Connexional|Donation|Nil|410|Nil|Nil|
|Mission in Britain<br>Fund|Connexional|Donation|Nil|410|Nil|Nil|
|Fund for Support of<br>Presbyters &<br>Deacons|Connexional|Donation|Nil|550|Nil|Nil|
|Fund for Property|Connexional|Donation|Nil|510|Nil|Nil|
|World Mission Fund|Connexional|Donation|Nil|593|Nil|Nil|
|All We Can|Connexional|Donation|Nil|1,783|Nil|Nil|
|Methodist Homes|Connexional|Donation|Nil|250|Nil|Nil|
|**Total**|||**0**|4,506|**0**|0|
|Donations to unrelated parties:<br>Total grants and donations:||||1,501<br>6,007|||



Page 21 



## **The Methodist Church - Letchworth Garden City** 

## **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 _Original signed: J Sharman_ Date 04-Nov-21 Name John W Sharman Address Letchworth Garden City Hertfordshire **Presentation to the Church Council Meeting for approval.** I confirm that the Accounts were presented to the Church Council Meeting on 04-Nov-21 and were approved. Signature of the Chair of the _Original signed: M Peacock_ meeting Name of the Chair of the meeting Reverend Malcolm Peacock Date: 4th November 2021 

Page 22 



## **Independent Examiner's Report** 

|**Report to the Trustees of**<br>**On accounts for the year**<br>**ended**<br>**Set out on pages**|**The Methodist Church - Letchworth Garden City**|**The Methodist Church - Letchworth Garden City**|**The Methodist Church - Letchworth Garden City**|
|---|---|---|---|
|||||
||**31 August 2021**|**Charity No.**|**1127225**|
|||||
||**10 - 21 inclusive**|||



I report to the trustees on my examination of the accounts of the above charity ("the Trust") for the year ended 31st August 2021 

**Responsibilities and basis** As the charity's trustees, you are responsible for the preparation of the **of report** accounts in accordance with the requirements of the Charities Act 2011 ("the Act") 

I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

**Independent Examiner's** I am qualified to undertake the examination by being a qualified member **Statement** of The Institute of Chartered Accountants in England and Wales 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect: ► the accounting records were not kept in accordance with section 130 of the Charities Act; or ► the accounts did not accord with the accounting records; or ► the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

|**Relevent professional**<br>**qualification(s) or body**<br>**Name:** <br>**Signed:**|_Original signed: C Maylin_|23-Dec-21|
|---|---|---|
||||
||Christopher Maylin||
||||
||Fellow of the Institute of Chartered Accountants in England and Wales<br>||



Page 23