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2025-08-31-accounts

NOTTING HILL METHODIST CHURCH REGISTERED CHARITY NUMBER 1127356

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2025

NOTTING HILL METHODIST[CHURCH]

Trustees Sonia Barnes
Wendy Chase
Revd. Paul Wood
Pauline Mullings
Esther Samuels
Gladwyn Samuels
Elaine Spence
Revd, Ian Worsfold (Appointed 01 September 2024)
Elaine Brackett (Appointed 01 September 2023)
Hannah Kawa (Appointed 01 September 2023)
Susannah Yarde (Appointed 01 September 2023)
Carla Brackett (Appointed 01 September 2023)
Robert Dixon (Appointed 01 September 2023)
Nyasha Brackett Thomas
(Appointed 01 September 2023)

NOTTING HILL METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

The Trustees present their report with the financial statements of the charity for the year ended 31 August 2025. 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 outits discipleship in worship and mission. Notting Hill Methodist Church priorities provide for:

The year the church has increasedits activities in worship and Bible study. The introduction of Cafe Style worship has seen increased numbers attending on a Sunday morning.

The basement of the building continues to host the Kensington and Chelsea foodbank and has become the new home of the 240 Project, an arts-based community support group.

Bible studies happened online and in person. The in-person events being most popular.

The church was able to enjoy its annual seaside excursion to Brighton which it shared with members of the wider community. The Church weekend focused on lay leadership in the church.

The Church continues to consider how we might become a greener church (building and community).[We][held] our Eco-barbequé and commissioned and prioritized points within our eco-audit.

We continue to offer support to those affected by the Grenfell Tower Disaster — including

a memorial service, community consultation events and acting as a consultant to the memorials commission and government.

NOTTING HILL METHODIST[CHURCH]

TRUSTEES’ ANNUAL REPORT (Continued ...) FOR THE YEAR ENDED 31[AUGUST] 2025

Finance

Basis of accounts preparation

The financial statements have[been] prepared[under] the[Charities][Act][2011][in][accordance] with the 2014 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

Incomeis 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 £935,509 (2024[-] £729,482).

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][and][Harlesden] Methodist 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 £120,000 was madeto the Denbigh[Methodist] Housing[Association][to][enable][it] to continue to make housing[available][to][those][in][need] at[social][housing][rent][levels][(2024]

  • £120,000). Although this arrangement[needs] to[be][reviewed][in][the][coming][year][with][the] Trustees seeking permission from the Methodist Council to once again take on direct management of[the][social][housing]

Total unrestricted expenditure amounted[to] £769,487[(2024][-][£825,927)]

Fund balances

The Church’s net current assets at[the] year-end[amounted][to][£284,057][(2024] ~ £78,269). After setting aside restricted reserves[unrestricted][funds][of][£268,295][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] byall 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.]

NOTTING HILL METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT (Continued ...) FOR THE YEAR ENDED 31 AUGUST 2025

Reserves policy and plans for 2025/26

The Church‘s reserves policy takes account of its net current assets at the last Balance Sheet date, the budget for the current year 2025/26 and significant known items of property expenditure to[be][incurred][in] the near future.

The agreed reserves policy is to retain from the unrestricted resources available under the above calculation the equivalent of three months operating expenditure (approximately £137,000) to[fund] planned activities should normal revenue earning be suspended. The managing trustees have acknowledged that given current market conditions there is a need to review and increase our reserves as an empty property in the area become immediately[liable] to business rates. This will be reviewed and amended in 2025-2026

Structure, Governance and Management

Legal framework

Following the merger in September 2024, Notting[Hill] Methodist Church is one of two churches in the Notting Hill and Harlesden 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

Nameof 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

NOTTING HILL METHODIST[CHURCH] TRUSTEES’ ANNUAL[REPORT] (Continued ...) FOR THE YEAR ENDED 31 AUGUST 2025 Management Day to day management ofthe[church][is][undertaken][by][ the][Church][Leadership][team][along] with the Minister. Superintendent[Minister:] Revd Paul Wood Senior Church Steward: Ms. Sonia Barnes Treasurer: Mrs. 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.] 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 organisation must have an identifiable benefit. - The benefit must be to the public or a section[of] the[public.] The Church exists to: - increase awareness[of][God’s] presence[and][to][celebrate][God’s][love;] - help people to[learn][and] grow as Christians, through mutual support and care; and - bea good neighbour to people[in][need][and][challenge] injustice. The trustees consider that for these reasons[the] charity[meets][these][public][benefit] requirements. Related parties The Church is one of two[churches] in[the] Notting[Hill][and][Harlesden][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.

NOTTING HILL METHODIST CHURCH

TRUSTEES’ ANNUAL REPORT (Continued ...) FOR THE YEAR ENDED 31 AUGUST 2025

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 ofits 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 whetheras a result of disabilities or reduction in capacities or by their situation, It is recognised that this increased vulnerability may be temporary or permanent 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. The policy is

reviewed annually.

NOTTING HILL METHODIST[CHURCH]

TRUSTEES’ ANNUAL[REPORT] (Continued ...)

FOR THE YEAR ENDED 31[AUGUST] 2025

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] Church’sprepare financialstate of[statements] affairs at the[for][end][each][of][ financial][the] year,[year,][and][the][which][result][give][for][a][ the][true][year][and][fair][then][view][ended.][of][ the]

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

  • select suitable accounting policies[and][then][apply][them][on] consistent basis;

  • make judgements and estimates that are prudent[and][reasonable;]

  • state whether applicable accounting[standards][have][been][ followed,][subject][to][any]

material departure disclosed[and] explained in the financial statements

  • prepare[accounts][on][a][going][concern][basis][unless] it[is][not][appropriate][to][presume] that the[church][will] continue[in][existence.] 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] Oi and signed ontheir behalf by: ae a e talon! TRevd Paul[Wood] w Superintendent[Minister][and][Chair][of][ Trustees] a

NOTTING HILL METHODIST CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS 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 2025 which comprise a statementof 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 ofthe financial statementsis 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 concernfor a periodof 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.

NOTTING HILL[METHODIST][CHURCH]

INDEPENDENT AUDITOR’S[REPORT][TO][THE][MEMBERS] OF[NOTTING][HILL][METHODIST] CHURCH (Continued ...)

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 whenit 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.

10

NOTTING HILL METHODIST CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NOTTING HILL METHODIST CHURCH (Continued ...)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design proceduresin line with our responsibilities, outlined above, to detect material misstatements in respect[of] irregularities, including fraud. The extent to which our 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 detectall 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 wewill be less likely to become aware of instances of non- compliance. 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:

11

NOTTING HILL METHODIST[CHURCH]

INDEPENDENT AUDITOR’S REPORT[TO] THE[MEMBERS][OF][NOTTING][HILL][METHODIST] CHURCH (Continued...)

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.

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.]

Lak +

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

(Ofot /rore

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

12

NOTTING HILL METHODIST CHURCH

Statementof Financial Activities for the Year ended 31 August 2025

Notes General Fund Designated Restricted Total
(Unrestricted) Funds Funds
£ £ £ £
Income
Offerings 11,511 - - 41,511
Donations 35,924 - 600.00 36,524
Gift aid 1,800 - - 1,800
Interest and investment income 2,460 - - 2,460
Income from investment
properties 402,022 - - 402,022
DMHArental income wo 163,853 - - 163,853
Other charitable income 132,606 - - 132,606
Reni from rentfree period 185,333 185,333
Total income 935,509 - 600 936,109
Expenditure
Circuit assessment or share an 57,406 - - 57,406
Grants and donations 180,477 952 5,200 186,629
Property maintenance 217,043 - - 217,043
Insurance,utilities etc. 100,259 - s 100,259
Depreciation 45,320 - - 45,320
Ministry expenses a 104,616 - - 104,616
Other expenditure 64,368 - - 64,368
Total charitable expenditure 769,489 952 5,200 775,841
Net income/ (expenditure) 166,020 (952) (4,600) 160,468
Transfers between funds (3,500) - 3500 :
Net movementin funds 162,520 (952) (1,100) 160,468
Total funds brought forward 15,835,138_ 6,490 16,862 15,858,490
Total funds carried forward 15,997,658 5,538 15,762 16,018,958

For details of comparative figures refer to note 18

13

NOTTING HILL METHODIST[CHURCH]

Balance Sheet as at[31] August[2025]

Notes General Designated Restricted Total2025 Total 2024
Fund Funds Fund
£ £ £ £ £
Fixed Assets
Churchbuilding and other
property		 9 5,257,120 5,257,120 5,302,440
Investment properties 9g 10,545,000 10,545,000 10,545,000
Total fixed assets 15,802,120 15,802,120 15,847,440
Current Assets
Debtors and prepayments 10 235,013 235,013 52,481
Central Finance Board Deposits 38,593 38,593 73,500
Cash at Bank and in hand 62,179 5,538 15,762 83,479 47,234
Total current assets 335,785 5,538 15,762 357,085 173,215
Currentliabilities
Creditors (due in under 1 year) tt 73,028 73,028 19,907
Amounts due to/{from) Notting Hill 0 0 41,886
Amount dueto DMHA 9 0 33,153
Grants payable QO Oo
Total currentliabilities 73,028 73,028 94,946
Q Qo
Net current assets/liabilities 262,757 5,538 15,762 284,057 78,269
Total assets less currentliabilities 16,064,877 5,538 15,762 16,086,177 15,925,709
Longliabilities
Commercial tenants’ deposits 67,219 67,219 67,219
Total assets less currentliabilities 15,997,658 5,538 15,762 16,018,958 15,858,490
Funds of the Church
General Fund (Unrestricted) 45,997,658 15,997,658 15,835,138
Designated Funds (Unrestricted) 5,538 5,538 6,490
Total Unrestricted Funds
Restricted Funds 15,762 15,762 16,862
Total Funds. 17 15,997,658 5,538 15,762 16,018,958 15,858,490

The financial statements were approved[and][authorised][for][issue.]

Treasurer Date: DE Ppl 2026

NOTTING HILL METHODIST CHURCH

Cash flow statement for the year ended 31 August 2025
Notes 2025 2024
Statementof cash flows £
Cash from operating activities
Net cash usedin operating activities a (566,997) (571,906)
Cash flows from investing activities
Dividends, interest and rents from investments 568,334 490,665
Net cash provided by investing activities 568,334 490,665
Changein cash and cash equivafents in the reporting period 1,338 (81,241)
Cash and cash equivalents at the beginning of the reporting period 120,734 201,975
Cash and cash equivalents at the end ofthe reporting
period		 B 122,072 120,734
Notes to cash flow statement for the year ended 31 August 2024
Note (a):
2025
Reconciliation of net incometo net cash flow from
£
operating activities
————
===
2024
Net income for the reporting period (as per statement of
financial activities)		 160,468
,		 (94,278)
Adjustmentsfor:
Depreciation and amortisation charges 45,320 49,170
Dividends, interest and rents from investments (568,334) (490,665)
(increase)/decrease
in debtors		 (182,532) (10,642)
increase/(decrease)
in creditors		 (21,918) (25,491)
Net cash usedin operating activities (366,997) (571,906)
2025 2024
Note (b):
Analysis of cash and cash equivalent £ £
Cash in hand 83,479 47,234
Short term deposit (less than 3 months) 38,593 73,500
Total cash and cash equivalents 122,072 120,734

15

NOTTING HILL METHODIST[CHURCH]

Notes to the financial statements Year ended 31 August 2025

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.]

They 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 Trustees consider that there are[no][material][uncertainties][about][the][entity’s][ability][to][continue][as] a going concern other than[those][noted][below.][There][were][no][significant][areas][of][adjustment][or][key] assumptions that[effect][items][in][the][accounts.] With respect to the next reporting period,[the][most] significant areas[of] uncertainty[are][the][letting][of][the][commercial][properties][and][collection][of][their] rents,[and] an[unsettled][claim][for][additional][costs][which][the][Church][disputes][on][a][major works][contract] completed during[the] year.

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.]

d) Resources expended

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][payment.] When the grantis[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.]

16

NOTTING HILL METHODIST CHURCH

NotesFor thetoyearthe endedfinancial31 statementsAugust 2025(Continued...)

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 whichit refers.

g) Debtors and creditors

recordedDebtors andat transactioncreditors withprice.noAnystatedlossesinterestarising rateon impairmentand receivableare recognisedor payableinwithinexpenditure.one year are

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%ofthe 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 changesin fair value recognised[in][“Net] gains/(Losses) on investments “in the SOFA.

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

Residential rental properties are valued based on vacant possession values reduced by one third to

reflect their tenanted status.

2 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 Over 3 years

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 amountof the asset is estimated and compared to the carrying amount. Where the carrying amount exceedsits recoverable amount, an impairment loss is recognised[in] income and expenditure.

17

NOTTING HILL[METHODIST][CHURCH]

Notesto the financial statements[(Continued] ...) For the year ended 31 August[2025]

1) 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] £402,022 (2024[-][£328,500)][comes][from][the][letting]

offive 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][the][7-year][ lease][to] DMHA. The rental is based on the market rents[of][ the] properties[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 £132,606 (2024[-][£226,134)][comes][ principally][from][the][letting][of][space][in][Church] properties[and][from][the][dilapidation][settlement][for][241][Westbourne][Grove][(Medica!][Centre).]

5. Circuit assessmentor share

The charge of £57,406 (2024 - £75,533) 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:

The grants and donations made from unrestricted fun
headings:		 ds went to charities under the f ollowing
2025 2024
£ £
DMHAforcharging social housing rents 120,000 120,000
Local organisations 36,500 6,000
Methodist Churches and organisations 13,000 11,100
Overseas Grants 10,977 7,000
Total Expenditure 180,477 144,100

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][taking][place][over][all][the] Church's properties. Expenditure on major[works][was][£148,433][(2024][-][£192,218).]

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NOTTING HILL METHODIST CHURCH

YearNotestoendedthe31financialAuguststaternents2025 (Continued ...)

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) (2024 2.6)

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 totalled £13,808 (2024[-] £12,839).

No employeesare paid in excess of £60,000.

No employeesare paid in excess of £60,000.
2025 2024
£ £
Gross Stipends, salaries and benefits in kind 89,003 59,205
Employer's National insurance 10,273 6,036
Employer's pension costs 5,340 3,552
104,616 68,793

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 19th 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 Hail, 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 £8,090,589. Kelfield Garden is a private open space with pavilion gifted to the Church[in] the early[20™] century, The pavilion is insured for £331,195.

9.2 Property fixed assets for investment

The freehoid.and leasehold of the Denbigh Estate were acquired by the Church in the 1890s. The estate[is] insured for £8,043,570. 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 Church Accounting Policies above.

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NOTTING HILL METHODIST[CHURCH]

Notes to the financial statements[(Continued] ...} Year ended 31 August 2025

Church Other Other Fixtures, Investment
(non- (non- fixed fitting and properties
investment investment assets equipment (land and Total
land and land and including buildings)
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 Bookvalue
buildings)—
buildings
motor
vehicles
£
£
£
£
£
£
5,567,000
98,000
91,973
38,500
10,545,000
16,340,473
5,567,000
98,000
91,973
38,500
10,545,000
16,340,473
356,320
6,240
91,973
38,500
493,033
44,540
780
-
-
45,320
400,860
7020.
91,973
38,500
-
538,353
Brought forward 5,210,680 91,760 - 3,850 10,545,000 15,847,440
Carried forward 5,166,140 90,980 : - 10,545,000 15,802,120

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NOTTING HILL METHODIST CHURCH

NotesFor thetoyear the financialended 31 statementsAugust 2025(Continued...)

10. Debtors

2025 2024
£ £
Rent in arrears 1,071 1,325
Other debtors 8,940 14,748
Loan to employees 4,034 4,034
Loan toTrustees 1,160 1,100
Denbigh Methodist Housing Association 4,535 -
Harlesden Methodist Church 30,000 4,375
Harlesden Methodist Circuit : 26,899
Rent Free period 185,333
235,013 52,481
11.
Creditors
2025 2024
£ £
Rent in advance 23,625 11,125
Notting Hill Methodist Circuit 17,684 41,886
Denbigh Methodist Housing Association - 33,153
Othercreditors and accruals 31,719 8,782
73,028 94,946

12. Fees for audit of the accounts

The audit fee for the current year is anticipated as £6,600 (2024 - £6,600).

13. Restricted Funds

During 2024/25[£600] restricted funds were received in donations to the Benevolent Fund. At the end

of the year, the balances on restricted funds were £15,762 (2024 - £16,862 see note 18).

14, Related party transactions

During the year two Trustees were reimbursed a total of £4,136.88 (2024 - £1,728) 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 £2,487.62 (2024 - £5,949) by the charity on behalf of both the Notting Hill Methodist Church and Noting Hill & Harlesden Methodist 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.

A Trustee loan of £1,100 (2024 - £1,100) remains outstanding at the endof the year.

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NOTTING HILL METHODIST CHURCH

Notesto the financial statements (Continued ...) For the year ended 31 August 2025

15. Commitment under. operating leases

At 341 August 2025 the Church had annual commitments under non-cancellable operating leases as follows:

2025 2024
£ £
Expiry date: 31 December 2024
Within one year 7 490
Between
twoandfive years

16. Capital commitments and contingent liabilities

16.1 Capital commitments

The Trustees have allocated £195,000 to be spent on refurbishment in the current year. Contracts have not been placed for the work. (2024 - £150,000).

16.2 Contingent liability

There were no contingent liabilities in financial year 2024-25,

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NOTTING HILL METHODIST CHURCH

Notesto the financial statements (Continued ...) For the year ended 31 August 2025

17. Movements on reserves

General Designated Restricted Total
£ £ £ £
Opening balance as at 1 September
2024 15,835,138 6,490 16,862 15,858,490
Income 935,509 - 600 936,1096
Expenses (769,489) (952) (5,200) (775,641)
Transfers (3,500) - 3500.00 -
Closing balance as at 31 August 2025 15,997,658 5,538 15,762 16,018,958
Opening
balance		 Income Expenses Transfer Closing
balance
Designated funds £ £ £ Fs £
Food Bank - * = . 7
Caribbean Heritage Fund & = . -
Transport Fund 5,943 - (952) - 4,991
Training & Educational fund 547 7 7 - 547
Restricted funds
Benevolent Fund 1,862 600 (5,200) 3,500 762
Youth activities & Projects Fund 15,000 : 7 > 15,000
Closing balance as at 31 August 2025 23,352 600 (6,152) 3,500 21,300
Prior year General Designated Restricted Total
E é E £
General Designated Restricted Total
£ £ £ £
Opening balance as at 1 September
2023 15,933,083 6,703 19,581 15,959,367
Income 729,482 7 = 729,482
Expenses (825,927) (213) (4,219) (830,359)
Transfers (1,500) - 1,500 -
Closing balance as at 31 August 2024 15,835,138 6,490 16,862 15,858,490

Notes to the financial statements (Continued ...) For the year ended 31 August[2025]

18. Statement of Financial Activities (SOFA)[for][ the] year[ended][31][August][2024]

18. Statement of Financial Activiti es (SOFA) forth e year ended 31 August 2024
Notes General Fund
(Unrestricted)		 Designated
Funds		 Restricted
Funds		 Total
£ £ £ £
income
Offerings 8,513 - - 8,513
Donations 2,570 - : 2,570
Gift aid 1,600 7 - 1,600
Interest and investment income 3,819 - - 3,819
Income from investment
properties
DMHArental income		 w 328,500
158,346		 7
7		 -
=		 328,500
158,346
Other charitable income 226,134 = - 226,134
Total income 729,482 = - 729,482
Expenditure
Circuit assessment or share		 75,533 - - 75,533
Grants and donations 144,100 213 4,219 148,532
Property maintenance 312,888 - * 312,888
Insurance, utilities etc. 55,176 - - 55,176
Depreciation 49,170 - - 49,170
Ministry expenses oO 72,173 - - 72,173
Other expenditure 116,887 - = 116,887
Total charitable expenditure 825,927 213 4,219 830,359
Net income / (expenditure) (96,445) (213) (4,219) (100,877)
Transfers between funds (1,500) - 1,500 -
Net gains/(losses) on
investments
Net movementin. funds (97,945) (213) (2,719) (100,877)
Total funds brought forward 15,933,083 6,703 19,581 15,959,367
Total funds carried forward 15,835,138 6,490 16,862 15,858,490

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