OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

NOTTING HILL METHODIST CHURCH

REGISTERED CHARITY NUMBER 1127356

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

NOTTING HILL METHODIST CHURCH

Trustees Sonia Barnes
Wendy Chase
Stephen Duckworth
Stacey Gerald (resigned May 2023)
Revd. Dr. Michael Long (Chair – resigned August 2023)
Pauline Mullings
Esther Samuels
Gladwyn Samuels
Elaine Spence
Secretary Wendy Chase
Charity number 1127356
Registered Office 240 Lancaster Road
London
W11 4AH
Auditors Banks & Co. Ltd.
1 Carnegie Road
Newbury
Berkshire RG14 5DJ
Solicitors Colman Coyle LLP
80 Upper Street
London N1 0NU
Bankers CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill, Kent
ME19 4JQ
Central Finance Board of the Methodist Church
9 Bonhill Street
London EC2A 4PE
Chartered Surveyors Colliers International
50 George Street
London W1U 7GA

2

NOTTING HILL METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

The Trustees present their report with the financial statements of the charity for the year ended 31 August 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Effective 1 January 2019)

Aims and organisation

The calling of the Methodist Church is to respond to the gospel of God's love in Christ and to live out its discipleship in worship and mission. Notting Hill Methodist Church priorities provide for:

  1. a regularly worshipping congregation,

  2. a fellowship of people learning and growing in Christian faith

  3. sharing its resources (including the building) with people in the neighbourhood.

  4. challenging injustice and meeting human need.

  5. speaking of God’s love to the wider world.

The year has seen the church maintain a steady state level of activities and worship.

The refurbished basement continues to host the Kensington and Chelsea foodbank and we look forward to welcoming back to 240 Lancaster Road the 240 Project, an arts based community support group.

Bible studies resumed in the summer months but have not attained their pre-pandemic level.

The church was able to enjoy its annual summer barbecue and seaside excursion for the first time since the pandemic.

The Church Eco-group continues to consider how we might become a greener church (building and community).

Last year with the help of a grant from the Royal Borough of Kensington and Chelsea, the church published ‘The Caribbean Contribution – Stories from Notting Hill Methodist Church’, including much oral history from church members of the 1960s and 70s. We have now successfully published this on our website

As the year came to an end, so did our time under the leadership of The Revd Mike Long. Mike has been the right person for the season. He arrived just before the tragedy of the Grenfell fire and was a stalwart in the community. The whole church pays tribute to and gives thanks to God for Mike’s leadership.

3

NOTTING HILL METHODIST CHURCH

Trustees Annual Report (Continued…) For the year ended 31 August 2023

Finance

Basis of accounts preparation

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2019 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 – the Charities SORP (FRS102).

Income and expenditure trends

Income is primarily drawn from lettings income from external users of the church, and from lettings of investment properties. This is augmented by Sunday collections and gift aid tax relief from members of the Church. Total unrestricted income amounted to £618,531 (2022 - £546,501).

Expenditure is primarily related to church buildings and the church’s investment properties The other major ongoing cost is for staff and related expenditure, including the annual assessment payable to the Notting Hill Circuit, which meets the Minister’s stipend and some other staff costs and includes repairs to the manse. Costs continued to arise for the managing and maintenance of church buildings and investment properties.

A grant of £100,000 was made to the Denbigh Methodist Housing Association to enable it to continue to make housing available to those in need at social housing rent levels (2022 - £115,000).

Total unrestricted expenditure amounted to £673,893 (2022 - £827,322)

Fund balances

The Church’s net current assets at the year-end amounted to £62,578 (2022 - £56,350). After setting aside restricted reserves unrestricted funds of £43,177 remain.

Investment Policy

The investment of surplus funds is operated through the Central Finance Board (CFB) of the Methodist Church. CFB aims to provide a 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 currently has its funds in a deposit account with CFB.

Reserves policy and plans for 2023/24

The Church’s reserves policy takes account of its net current assets at the last Balance Sheet date, the budget for the current year 2023/24 and significant known items of property expenditure to be incurred in the near future. By 31 August 2024 free reserves are estimated to be negative at £11,000.

The agreed reserves policy is to retain from the unrestricted resources available under the above calculation the equivalent of three months operating expenditure (approximately £100,000) to fund planned activities should normal revenue earning be suspended. The unrestricted reserves of £43,177 at the year-end thus fell somewhat short of this level.

4

NOTTING HILL METHODIST CHURCH

Trustees Annual Report (Continued…) For the year ended 31 August 2023

Structure, Governance and Management

Legal framework

Notting Hill Methodist Church is the sole church in the Notting Hill Methodist Circuit.

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 (CPD), by order of the annual Methodist Church Conference.

The purposes of the Methodist Church are and shall be deemed to have been since the Date of Union the advancement of:

Reference and administrative details

Name of charity: Notting Hill Methodist Church Charity registration number: 1127356 Date of registration: 31 December 2008

A list of senior lay employees is below:

Ken Asiedu – Facilities Manager

Management

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

Superintendent Minister: Revd Dr Michael Long (resigned on 31 August 2023) Revd Paul Wood (appointed on 1 September 2023)

Senior Church Steward: Mrs Elaine Spence (resigned on 31 August 2023) Mrs Esther Samuels (appointed on 1 September 2023)

Elaine Spence acted as the principal officer overseeing the day to day financial management and accounting for the Church during the year.

Governance

The members of the Notting Hill Methodist Church Council are the Charity Trustees, membership being made up of Church and Circuit office holders, the Minister and up to eight representatives appointed by the Church at its Annual Church Meeting.

5

NOTTING HILL METHODIST CHURCH

Trustees Annual Report (Continued…) For the year ended 31 August 2023

A range of guidance produced by the 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 training sessions held throughout the year.

Public benefit

The trustees have due regard to the public benefit guidance published by the Charity Commission in compliance with its duties under section 4 of the Charities Act 2011. This guidance sets out two key principles:

The Church exists to:

The trustees consider that for these reasons the charity meets these public benefit requirements.

Related parties

The Church is the sole church in the Notting Hill Circuit, which is part of the London District and also accountable to the Methodist Conference. The Church controls the membership of the Denbigh Methodist Housing Association which is a charitable housing association registered under the Cooperative and Community Benefit Societies Act 2014.

Risk management

The Trustees are responsible for identifying and mitigating the level of risk faced by the charity, taking professional advice as required. An annual review process is undertaken, with documentation of the strategy to be employed for risk mitigation.

Major risks will continue to accrue from the condition of the properties of the church and a quinquennial report by a qualified surveyor was undertaken in 2020 to inform the Church’s plans for maintenance of its properties, most of which is now complete.

Safeguarding

The Methodist Church, along with the whole Christian community, believes each person has a value and dignity which comes directly from God’s creation in God’s own image and likeness. Christians see this 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.

Notting Hill Methodist Church is committed to the safeguarding and protection of all children, young people and adults and affirms that the needs of children or of people when they are vulnerable and at risk are paramount.

Notting Hill Methodist Church recognises that it has a particular care for all who are vulnerable whether as a result of disabilities or reduction in capacities or by their situation. It is recognised that this increased vulnerability may be temporary or permanent

6

NOTTING HILL METHODIST CHURCH

Trustees Annual Report (Continued…) For the year ended 31 August 2023

and may be visible or invisible, but that it does not diminish our humanity and our wish to affirm the gifts and graces of all God’s people.

The Church’s policy addresses the safeguarding of children, young people and vulnerable adults. It is intended to be a dynamic policy. It is intended to support the Church in being a safe supportive and caring community for children, young people, vulnerable adults, for survivors of abuse, for communities and for those affected by abuse.

Church Council Members’ Responsibilities

The members of Church Council are responsible for preparing the annual report and financial statements in accordance with applicable law and United Kingdom

Generally Accepted Accounting Practice. Legislation requires the Council members to prepare financial statements for each financial year, which give a true and fair view of the Church’s state of affairs at the end of the year, and the result for the year then ended.

In preparing these financial statements, the Council members are required to:

The Council members are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Church. They are also responsible for safeguarding the assets of the Church and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Church Council on 27 February 2024 and signed on their behalf by:

Revd Paul Wood Superintendent Minister and Chair of Trustees

7

NOTTING HILL METHODIST CHURCH

Independent Auditor’s Report to the Trustees of Notting Hill Methodist Church

Opinion

We have audited the financial statements of Notting Hill Methodist Church (the ‘charity’) for the year ended 31 August 2023 which comprise a statement of financial activity, balance sheet and notes to the financial statements, including 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:

Basis for 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 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.

Conclusion relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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. The trustees are responsible for the other information contained within the annual report. 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.

8

NOTTING HILL METHODIST CHURCH

Independent Auditor’s Report to the Trustees of Notting Hill Methodist Church

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our

9

NOTTING HILL METHODIST CHURCH

Independent Auditor’s Report to the Trustees of Notting Hill Methodist Church

procedures are capable of detecting irregularities, including fraud is detailed below:

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. This 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 noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

10

NOTTING HILL METHODIST CHURCH

Independent Auditor’s Report to the Trustees of Notting Hill Methodist Church

Use of our report

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.

Banks & Co Limited, Statutory Auditor Chartered Certified Accountants 1 Carnegie Road Newbury Berkshire RG14 5DJ

………………………….. 2024

Banks & Co Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

11

NOTTING HILL METHODIST CHURCH

Statement of Financial Activities for the Year ended 31 August 2023

Notes
Income
Offerings
Donations
Gift aid
Interest and investment income
Income from investment properties
2
DMHA rental income
3
Other charitable income
4
Total income
Expenditure
Circuit assessment or share
5
Grants and donations
6
Property maintenance
7
Insurance, utilities etc.
Depreciation
9
Ministry expenses
8
Other expenditure
8
Total charitable expenditure
Net income / (expenditure)
Transfers between funds
Net gains/(losses) on investments
Net movement in funds
Total funds brought forward
Total funds carried forward		 General Fund
(Unrestricted)
£
9,527
3,739
4,848
5,351
355,142
136,596
103,328
618,531
83,532
140,300
179,546
50,888
49,170
70,808
99,649
673,893
(55,362)
(10,056)
(1,762,000)
(1,827,418)
17,760,501
15,933,083
Designated
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,156
6,156
547
6,703		 Restricted
Funds
£
-
17,263
-
-
-
-
-
17,263
-
4,664
-
-
-
-
-
4,664
12,599
3,900
16,499
3,082
19,581		 Total
£
9,527
21,002
4,848
5,351
355,142
136,596
103,328
635,794
83,532
144,964
179,546
50,888
49,170
70,808
99,649
678,557
(42,763)
-
(1,762,000)
(1,804,763)
17,764,130
15,959,367

For details of comparative figures refer to note 18

12

NOTTING HILL METHODIST CHURCH

Balance Sheet as at 31 August 2023

Notes
Fixed Assets
Church building and other property
9
Investment properties
9
Total fixed assets
Current Assets
Debtors and prepayments
10
Central Finance Board Deposits
Cash at Bank and in hand
Total current assets
Current liabilities
Creditors
11
Amount due to Notting Hill Methodist Circuit
Amount due to Denbigh Methodist
Housing Association
Grants payable
Total current liabilities
Net current assets/liabilities
Total assets less current liabilities
Funds of the Church
General Fund (Unrestricted)
Designated Funds (Unrestricted)
Total Unrestricted Funds
Restricted Funds
Total Funds
17		 General
Fund
Designated
Funds
Restricted
Fund
Total 2023 Total 2022
£
£
£
£
£
5,351,610
5,351,610
5,400,780
10,545,000
10,545,000 12,307,000
15,896,610
15,896,610 17,707,780
41,839
41,839
90,535
151,797
151,797
158,252
23,894
6,703
19,581
50,178
80,289
217,530
6,703
19,581
243,814
329,076
106,097
106,097
161,979
49,432
49,432
100,747
25,528
25,528
-
-
-
10,000
181,056
181,056
272,726
36,473
6,703
19,581
62,757
56,350
15,933,083
6,703
19,581
15,959,367
17,764,130
15,933,083
15,933,083 17,760,501
6,703
6,703
547
17,761,048
19,581
19,581
3,082
15,933,083
6,703
19,581
15,959,367
17,764,130

The financial statements were approved and authorised for issue.

Signed

……………………………………………………………

Chair

………………………………………………………....

Treasurer

Date:

13

NOTTING HILL METHODIST CHURCH

Cash flow statement for the year ended 31 August 2023

Notes
2023
Statement of cash flows
£
Cash from operating activities
Net cash used in operating activities
a
(533,655)
Cash flows from investing activities
Dividends, interest and rents from investments
497,089
Net cash provided by investing activities
497,089
Change in cash and cash equivalents in the reporting period
(36,566)
Cash and cash equivalents at the beginning of the reporting period
238,541
Cash and cash equivalents at the end of the reporting
period
b201,975
Notes to cash flow statement for the year ended 31 August 2023
Note (a):
2023
Reconciliation of net income to net cash flow from
£
operating activities
Net income for the reporting period (as per statement of
(42,763)
financial activities)
Adjustments for:
Depreciation and amortisation charges
49,170
Dividends, interest and rents from investments
(497,089)
(increase)/decrease in debtors
48,697
increase/(decrease) in creditors
(91,670)
Net cash used in operating activities
(533,655)
2023
Note (b):
Analysis of cash and cash equivalent
£
Cash in hand
50,178
Short term deposit (less than 3 months)
151,797
Total cash and cash equivalents
201,975		 2022
£
(665,063)
462,666
462,666
(202,397)
440,938
238,541
2022
£
(285,273)
49,170
(462,666)
12,311
21,395
(665,063)
2022
£
80,289
158,252
238,541

14

NOTTING HILL METHODIST CHURCH

Notes to the financial statements For the year ended 31 August 2023

1. Accounting Policies

a) Basis for preparing the financial statements

These financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or in the notes to the financial statements.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have also been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the Statement of Recommended practice applicable to charities preparing their accounts with the Financial Reporting Standard applicable to the UK and the Republic of Ireland (FRS102) (Charities SORP (FRS102)) and the Charities Act 2011.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

b) Funds

The funds held constitute:

c) Incoming resources

Incoming resources are included in the Statement of Financial Activities (SOFA) when the Church becomes entitled to that income, and the trustees are reasonably certain they will receive the resources, and the amount can be quantified with reasonable accuracy.

d) Resources expended

Expenditure is recognised on an accruals basis 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.

e) 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

15

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

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.

f) Taxation

Notting Hill Methodist Church is recognised as exempt from Income and Corporation tax on income derived from its charitable activities because of its charitable status. Since the Church is not VAT registered, all input VAT borne is charged with the expenses to which it refers.

g) Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising on impairment are recognized in expenditure.

h) Tangible fixed assets

The Land & Buildings disclosed in the accounts are legally owned by The Trustees for Methodist Church Purposes in its capacity as trustee or custodian Trustee.

The Church premises at Lancaster Road and Etheline Holder Hall and the pavilion at Kelfield Gardens have from the 2016/17 accounting year been valued based on their insurance valuation in 2017 with the intention that this be the deemed value under FRS 102. The building element of this for depreciation purposes is deemed to be 40% of the full value, given the high land costs in Kensington and Chelsea.

i) Investment properties

Investment properties are measured at fair value at each reporting date with changes in fair value recognized in ‘Net gains/(losses) on investments’ in the SoFA.

The commercial properties have been assessed based on a valuation in December 2023 by PLW Morgan MCIArb based on rental yields of 7.5% as they are held in perpetuity.

The residential rental properties are valued based on vacant possession values reduced by one third to reflect their tenanted status.

j) Depreciation

It is the Church’s policy to capitalise its non-building fixed assets, including vehicles, furniture and equipment assets, with costs over £5,000 and to charge depreciation on these. All building fixed assets are capitalised with only the building element depreciated.

Depreciation is charged as follows on building and non-building fixed assets:

Buildings (other than investment properties) over 50 years Organ over 10 years Furniture, equipment and vehicles over 4 years Computers and IT equipment 0ver 3 years

16

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

k) Impairment

Assets not measured at fair value are reviewed for any indication of impairment at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in income and expenditure.

l) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. Income from Investment Properties

The income from lettings of £355,142 (2022 - £345,804) comes from five retail premises.

3. Income from DMHA rentals

The Church and Circuit lease their residential properties to Denbigh Methodist Housing Association (DMHA) to manage, with the expectation that for most of the properties social housing rent levels will be charged. The Church and Circuit are required to charge a market rental under a 7-year lease to DMHA. The rental is based on the market rentals established in 2018, less an allowance for all the costs of management and maintenance other than major works, adjusted for subsequent inflation.

4. Other Charitable Income

This income of £103,328 (2022 - £71,885) comes principally from the letting of space in Church properties.

5. Circuit assessment or share

The charge of £83,532 (2022 - £56,795) is borne by the Church for ministry and manse expenses.

6. Grants and donations

The grants and donations made from unrestricted funds went to charities under the following headings:

DMHA for charging social housing rents
Local organisations
Methodist Churches and organisations
Overseas Grants
Total Expenditure		 2023
£
100,000
20,000
3,300
17,000
140,300		 2022
£
115,000
640
30,000
4,460
150,100

17

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

The grant to Denbigh Methodist Housing Association (DMHA) is to assist the association to continue to charge social housing rents rather than market rents to most of its tenants.

7. Property maintenance

Following the quinquennial survey undertaken in 2020 significant works are being carried out on all of the Church’s properties. Expenditure on major works was £85,794 (2022 - £177,955)

8. Salaries, NIC and Pension costs

Ministry expenses and other expenditure include relevant staff employment costs.

The Church operates a payroll and recharges the relevant costs to the Notting Hill Methodist Circuit and Denbigh Methodist Housing Association.

The average number of staff employed by the Church during the year were 2.6 (full time equivalents) (2022 – 3.6)

The Church provides and administers a money purchase pension arrangement for all staff with TPT Retirement Solutions. During the year, total employer’s and employees’ pension contributions before recharge amounted to £13,518 (2022 - £9,928).

No remuneration was paid to any of the trustees.

No employees are paid in excess of £60,000.

o employees are paid in excess of £60,000.
Gross Stipends, salaries and benefits in kind
Employer's National Insurance
Employer's pension costs		 2023
£
54,927
5,931
4,571		 2022
£
89,232
7,048
3,744
65,429 100,024

9. Tangible Fixed Assets

9.1 Property fixed assets for the Church’s own use

The church in Lancaster Road was built in the late 19[th ] Century and has been in continuous use by the Methodists since then. In 1994 work on a major refurbishment scheme included reducing the size of the church interior and creating ancillary offices. The works were completed in 1997 at a cost of £1,070,000, funded principally from the sale of proceeds of the church in Denbigh Road. Etheline Holder Hall, a community hall built on a retained part of the Denbigh Road site, opened in 1992, at a cost of £215,000.

These church properties are insured for £7,446,012. Kelfield Garden is a private open space with pavilion gifted to the Church in the early 20[th] century. The pavilion is insured for £130,397.

18

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

9.2 Property fixed assets for investment

The freehold and leasehold of the Denbigh Estate were acquired by the Church in the 1890s. The estate is insured for £7,636,519. The value of the five shops included in the estate has been assessed based on a professional valuation in December 2023 using a rental yield of 7.5%, and the values have been confirmed by recent lease settlements on the estate. Residential properties have been valued by the Trustees on the basis of professional advice and the Trustees review of the market based upon current market yields.

9.3 Depreciation

Depreciation is charged on building and non-building fixed assets at the rates shown under accounting policies above.

Cost or valuation
Balance brought forward
Additions
Revaluations
Disposals
Balance carried forward
Accumulated
depreciation
Balance brought forward
Charge for the year
Disposals
Balance carried forward
Net Book value
Brought forward
Carried forward		 Church (non-
investment
land and
buildings)
Other
(non-
investment
land and
buildings
Other fixed
assets
including
motor
vehicles
Fixtures,
fitting and
equipment
Investment
properties
(land and
buildings)
Total
£
£
£
£
£
£
5,567,000
98,000
91,973
38,500
12,307,000 18,102,473
-
-
-
-
-
-
-
-
-
(1,762,000)
(1,762,000)
-
-
-
-
--
5,567,000
98,000
91,973
38,500
10,545,000 16,340,473
267,240
4,680
91,973
30,800
-
394,693
44,540
780
3,850
-
49,170
311,780
5,460
91,973
34,650
-
443,863
5,299,760
93,320
-
7,700
12,307,000 17,707,780
5,255,220
92,540
-
3,850
10,545,000
15,896,610

19

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

10. Debtors

Rent in arrears
Other debtors and prepayments
1.
Creditors
Rent in advance
Other creditors and accruals		 2023
£
20,462
21,377
41,839
2023
£
4,875
101,222
106,097		 2022
£
29,534
61,001
90,535
2022
£
16,708
145,271
161,979

11. Creditors

12. Auditor’s remuneration

The audit fee for the current year is anticipated as £5,000 (2022 - £4,000). Fees payable to the auditor for other services amount to £1,000.

13. Restricted Funds

During 2022/23 restricted funds of £17,263 were received in donations to the Benevolent Fund £1,238, the Youth Projects Fund £15,000 and the Foodbank Fund £1,025. The Youth Projects Fund was established by a donation related to a deceased member of the Church. At the end of the year, the balances on restricted funds were £19,582 (see note 18).

14. Related party transactions

During the year three Trustees were reimbursed a total of £85 (2022 - £5,695) by the Notting Hill Methodist Church in respect of expenses incurred in the day to day operations of the charity.

One other Trustee was reimbursed a total of £3,640 (2022 - £1,274) by the charity on behalf of both the Notting Hill Methodist Church and Circuit.

One trustee had a related interest during the year as a tenant of Denbigh Methodist Housing Association living in a Notting Hill Methodist Church property.

20

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

15. Commitment under operating leases

At 31 August 2023 the Church had annual commitments under non-cancellable operating leases as follows:

2023 2022
£ £
Expiry date: 31 December 2024
Within one year 1,180 1,180
Between two and five years 490 1,670

16. Capital commitments and contingent liabilities

16.1 Capital commitments

The Church had capital commitments contracted for but not provided in the financial statements of £13,750 (2022 - £47,000). These are expected to be settled during the next 12 months and will be funded through general reserves.

16.2 Contingent liability

The contingent liability disclosed within the 2022 financial statements was settled during the current year. There were no additional costs included within the 2023 financial statement.

21

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

17. Movements on reserves

Opening balance as at 1 September 2022
Income
Expenses
Transfers
Net gains/(losses) on investments
Closing balance as at 31 August 2023
Benevolent Fund
Food Bank
Caribbean Heritage Fund
Youth Activities & Projects Fund
Closing balance as at 31 August 2022
Prior year
Opening balance as at 1 September 2022
Income
Expenses
Transfers
Closing balance as at 31 August 2022		 General
£

17,760,501
618,531
( 673,893)
(10,056)
(1,762,000)
15,933,083
Opening
balance
£
(814)
2,100
1,796
-
3,082
General
£

17,872,337
546,501
(827,322)
168,985
17,760,501		 Designated
£
547
6,156
6,703
Income
£
1,238
1,025
-
15,000
17,263
Designated
£
168,985
-
-
(168,438)
547		 Restricted
£
3,082
17,263
( 4,664)
3,900
Total
£

17,764,130

635,794

(678,557)

-
(1,762,000)
15,959,367
Transfer
Closing
balance
£
£

3,900
527

-
2,782

-
1,273
-
15,000
Total
£

17,764,130

635,794

(678,557)

-
(1,762,000)
15,959,367
Transfer
Closing
balance
£
£

3,900
527

-
2,782

-
1,273
-
15,000
19,581
Expenses
£
(3,798)
(343)
(523)
-
(4,664) 3,900
19,582
Restricted
£
8,081
43,491
(47,943)
(547)



Total
£
18,049,403
589,992
(875,265)
-
17,764,130
3,082

22

NOTTING HILL METHODIST CHURCH

Notes to the financial statements (Continued …) For the year ended 31 August 2023

18. Statement of Financial Activities (SOFA) for the year ended 31 August 2022

Notes
Income
Offerings
Donations
Gift aid
Interest and investment income
Income from investment properties
2
DMHA rental income
3
Other charitable income
4
Total income
Expenditure
Circuit assessment or share
5
Grants and donations
6
Property maintenance
7
Insurance, utilities etc.
Depreciation
9
Ministry expenses
8
Other expenditure
8
Total charitable expenditure
Net income/ (expenditure)
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 General Fund
(Unrestricted)
£
Designated
Funds
(Unrestricted)
£
Restricted
Funds
£
Total
£
9,372
9,372
2,305
43,491
45,796
273
273
672
672
345,804
345,804
116,190
116,190
71,885
71,885
546,501
-
43,491
589,992
56,795
56,795
150,100
47,943
198,043
321,685
321,685
35,285
35,285
49,170
49,170
77,740
77,740
136,547
136,547
827,322
-
47,943
875,265
(280,821)
-
(4,452)
(285,273)
168,985
(168,438)
(547)
-
(111,836)
(168,438)
(4,999)
(285,273)
17,872,337
168,985
8,081
18,049,403
17,760,501
547
3,082
17,764,130

23