**Registered Charity number 1127744** # **St Paul’s Methodist Church, Crawley** **Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 August 2022** Page 1 of 23 **St Paul’s Methodist Church, Crawley** **CONTENTS of the Report of the Trustees and Financial Statements Year Ended 31 August 2022** Page Reference and Administrative Details .................... 3 Report of the Trustees ............................................ 4 Statement of Financial Activity............................. 12 Balance Sheet ....................................................... 13 Notes to the Financial Statements ....................... 14 Declarations .......................................................... 22 Independent Examiner’s Report .......................... 23 Page 2 of 23 **St Paul’s Methodist Church, Crawley** ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Year Ended 31 August 2022** **Trustees:** Rev G. Baalham Mrs J. Bower Mr M. Bower Rev E. Brookes Mr A. Brown Mrs V. Collins _(until 8 December 2021)_ Rev M. Cooke Mrs Y. Ellard Mrs S. Ford Mrs B. Gillet Mrs S. Jones Dr B. Jones Mrs J. Jordan Mr P. Jordan Ms R. Lewis Mrs J. Mason Rev C. McKie Mrs C. Ofield Mr M. Ofield Deacon J. Parnell Mr G. Ridgway Mrs L. Tazob _(from 6 February 2022)_ **Full name of the Church:** St Paul’s Methodist Church **Alternative name:** Crawley Methodist Church **Registered Charity Number:** 1127744 **Principal address** St Paul’s Methodist Church, Woodfield Road, Northgate, Crawley, West Sussex, RH10 8ER **Independent examiner:** Yvette How MAAT **Investment Bankers:** Central Finance Board of the Methodist Church Page 3 of 23 **St Paul’s Methodist Church, Crawley REPORT OF THE TRUSTEES** ## **Year Ended 31 August 2022** The Trustees submit their annual report and unaudited financial statements for the year ended 31August 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and 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) as amended by the update bulletin (effective 1 January 2015). ## **Objectives and Activities** ## **Objectives** St Paul’s Methodist Church Mission is to: Unite in Faith, Worship in Faith, Grow in Faith, Share the Good News, Make Disciples, and Serve in Love. _Note: ‘Faith’ refers to the Christian faith and Good News’ refers to the Gospel of Jesus Christ._ The Church also supports and contributes to the purposes of the Methodist Church which are 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. ## **Activities** The activities of St Paul’s Methodist Church are designed to meet the objectives of the mission statement and, by doing so, to benefit its members, its congregation and the wider public, by supporting Christians as they seek to worship God and to live out their faith, by sharing the Christian message, by helping those in need, and by working for social justice. A list of the main, regular activities is given below. This list does not include one-off special events. For a fuller description of the activities, please see the church website: www.crawleymethodistchurch.com ## _Activities List_ Sunday Worship Services Prayer Meetings A variety of informal Worship and Social Events Loaves and Fishes (Community Café) House Groups Pastoral Visiting Fellowship Groups Flower Ministry Sunday School Groups Community Use of the Building Young Peoples’ Singing Groups Fund Raising for others Fun Friday (Children, Youth and Family evening) Page 4 of 23 **St Paul’s Methodist Church, Crawley** **REPORT OF THE TRUSTEES** **Year Ended 31 August 2022** ## **Public Benefit** The trustees have referred to the guidance in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives in planning its future activities. In particular, they have considered how planned activities will contribute to the aims and objectives they have set. ## **Achievements and Performance** ## **Senior Steward’s report** ## _Staffing_ In September 2021, Rev Melvyn Cooke, Circuit Superintendent, took on pastoral oversight of St Paul’s and in October we welcomed Deacon Jenny Parnell to our circuit. Her focus is on community work with St Paul’s and Horley Methodist Churches. ## _Worship_ Over the course of the year, as Covid restrictions eased, Sunday services gradually took on a more familiar feel. Members of the regular congregation gradually returned although numbers of people attending worship have not recovered to the pre-Covid level. It is noticeable that previously regular attenders are now coming irregularly, particularly families with children who seem only to attend if the children are actively participating. We have re-introduced refreshments after the service which has helped to re-ignite the fellowship and friendships between people. During this year St Paul’s has joined the Methodist churches in Horley and Redhill in a quarterly combined service hosted at the three churches in turn. Members of the three congregations are getting to know each other better and are learning to draw on each other’s gifts and strengths. We have begun holding occasional informal afternoon church events, which are aimed at reaching out to the community, as well as providing fellowship and company for members of our own congregation. At the first two of these events, the Young People’s Singing Groups sang, bringing in their families. The second event, a concert by the Young People’s Singing Groups followed by a barbeque was very successful, bringing in members of Crawley’s refugee community, who felt they were welcomed and treated as ‘real people’. We continue to live-stream our services for the benefit of those unable to attend in person. ## _Work with children and young people_ This year has been mixed. Fewer families are returning to church on a weekly basis, making it difficult to plan activities for the children. Since the return to church, there have been fewer occasions when children go out to a group, due to the very low numbers of children in church. Children and young people are encouraged to participate in worship by delivering the bible reading or leading singing. At the end of the summer, the children’s work leader moved away from the area so Sunday children’s groups are on hold until September 2022. The Young People’s Singing Groups are meeting on Friday evenings. There are now two groups, one for primary school ages and one for secondary school ages. This has proved very successful and there have been a total 8 younger children singing at any one time and 5 young people. The older group have sung a range of different styles and are beginning to ask to sing certain songs! Parents also seem to enjoy Friday evenings, as a time to chill out and relax. A church member and Deacon Jenny come to help look after the younger children, making Friday evenings fun! Page 5 of 23 ## **St Paul’s Methodist Church, Crawley** ## **REPORT OF THE TRUSTEES** ## **Year Ended 31 August 2022** ## _Church property_ During this last year our Property Manager took the majority of the year off for personal reasons. Although there were people willing to take on some property responsibilities roles, this meant some of the usual works and renovations did not take place as planned. Various minor works took place. The fire exit doors in the hall were mended to allow easy access. Various servicing took place to ensure the safe running of the building. Work regarding the sanctuary roof has continued and we eventually passed planning permission with some amendments that the council required. We have gained Circuit approval and are awaiting District approval. Lettings have recovered well after Covid, leading to a record breaking year thanks to our Lettings Manager who deals with the majority of this. Thanks are also due to some other church members who help with dealing with some aspects of the property maintenance. ## _Fellowship and pastoral care_ There are currently two active Fellowship Groups at St Paul’s; a Tuesday evening Zoom Fellowship and a Wednesday morning group which meets face to face at the church. Ways are being investigated to start more fellowship groups to fulfil the need to support each other in our faith and in our everyday lives. We have 103 members and 79 adherents on the Pastoral Roll. During the Covid crisis, visiting was not routinely carried out. At present, we have 6 pastoral visitors but we have 12 neighbourhoods. Several of the pastoral visitors have asked to stand down. A meeting has been fixed to plan the future of pastoral work at St Paul’s. It is expected that a model based on friendship groups will be needed, with people using the phone as a means to contact and befriend. ## _Communications_ A fortnightly newsletter is sent to most people by email, with paper copies posted to 20 households without email. Between issues, email and word of mouth are used to disseminate information. St Paul’s website and Facebook page are also used as a communication channels. ## _Community use of the church_ The number of room bookings has returned to normal following the drop-off during Covid. Many community support groups meet on the premises as well as some commercial organisations. This brings in considerable income as well as bringing church and community into contact. We have been pleased to offer space to Crawley’s refugee community for support groups and language classes. ## _Local outreach and charitable fund-raising_ A community outreach barbeque in July 2022 was attended by about 100 people, including refugees who live in local accommodation. The church café, _Loaves & Fishes_ , is now open Monday to Thursday 10.30am-1.00pm staffed by volunteers. We have not been able to restart monthly coffee mornings due to lack of volunteers. _The Hub – Love Your Neighbour_ ; this charity is for signposting and outreach. Two volunteers from St Paul's have recently joined The Hub team. _The Easter Team_ Food Bank is also attached to The Hub where there is one volunteer from St Paul's. _Action for Children_ and _Methodist Homes_ Support Groups have not been able to have any fund-raising events since March 2020. It is hoped that supporters have donated on-line. A fund-raising plant sale was held during Christian Air week in May which raised £794.50. We have not been able to hold services for World Missions Sunday this year. Page 6 of 23 **St Paul’s Methodist Church, Crawley** **REPORT OF THE TRUSTEES** **Year Ended 31 August 2022** ## _Looking ahead_ During the coming year we will focus on growing our church by encouraging people to return to worship and the other church activities they were engaged in prior to Covid. We will also find ways of sharing the love of God to the community outside our walls, both by telling the Good News of the gospel and by serving people in need at this time of concern for many because of the increasing burden of the cost of living. ## **Financial Review** ## **Overview** A balanced General Fund budget was planned for the financial year ending 31[st] August 2022. The outcome was a surplus of £27,588. Income was above the budget prediction and expenditure was below the budget prediction. The above budget income is primarily attributable to increased lettings income. The below budget expenditure results from underspends across several budget headings, and most significantly in the Property Maintenance budget and the mission critical Church Growth and Youth budgets. The makeup of the Church’s income has shifted significantly over time. After adjusting for inflation, the last ten years show a downward trend in giving (pledges, offerings, donations and Gift Aid tax refunds) and an upward trend in lettings. In 2014 lettings accounted for 22% of the General Fund income whereas, in 2022, it is now 51%. In contrast, income from giving to the General Fund has dropped from 66% of the General Fund income in 2014 to 44% in 2022. The increase in lettings income is very encouraging but the lettings market can be volatile and there are risks in becoming over-dependent on this income stream. The progress of the project to replace the Sanctuary roof and refurbish the Sanctuary has been slow, because of the pandemic, but it has now passed the planning permission stage and is awaiting consent from the Methodist Church District. The project will be funded from the Redevelopment & Refurbishment Restricted Fund. The Church’s ‘recovery’ from the impact of the pandemic has been slow and the declining trend in active membership remains an issue. If this trend is not reversed, income from pledges, offerings and donations will continue to drop, leading to a reduction in total income, and the current shortage of volunteers to run the mission critical activities will become more acute. The Church’s highest priority is to grow the church by sharing the gospel and making disciples. ## **Income and Expenditure** ## _**General Fund**_ Most of the Church’s income is from pledges, offerings and donations, and from Lettings. The income from pledges was £1,889 below the budget prediction and £2,100 below the previous year. loose cash offerings remain low because collections have been constrained by Covid prevention measures. Donations were also lower than last year. Overall, income from giving to the General Fund (pledges, offerings, donations, and Gift Aid) was £1,720 less than last year and £3,514 less than two years ago. This reduction in income from giving may be partly attributed to the ongoing impact of the pandemic, but it is probable that the primary cause is the declining trend in active membership. Page 7 of 23 **St Paul’s Methodist Church, Crawley** ## **REPORT OF THE TRUSTEES** ## **Year Ended 31 August 2022** After the significant drop in lettings income last year, caused by the building closures during the height of the pandemic, the lettings have recovered exceptionally well and grown to exceed pre-pandemic levels. The lettings income is at a record level of £65,455, which is £15,455 above the budget prediction. The Loaves and Fishes Café has successfully resumed operation and the income has been returning towards pre-pandemic levels. Most of the General Fund expenditure is incurred on the Circuit Assessment (used by the Circuit to pay ministers’ stipends and related costs, and to pay the District Assessment); the costs of running the Church building (maintenance, cleaning and lettings salaries, energy and other utilities, etc.); and the costs of running the Church’s activities. Circuit Assessment was in line with budget predictions. Property maintenance expenditure was much lower than predicted, primarily because maintenance has been delayed by the pandemic and other factors. Expenditure on salaries was broadly in-line with predictions. There were significant underspends in the Church Growth and Junior Church & Youth budgets. There were smaller underspends and overspends in several other budget areas with the underspends outweighing the overspends. The Church also made a donation of £2,250 to the Methodist Church Pension Fund, which had not been included in the budget. Overall, General Fund income was £38,881 more than the previous year and £11,532 above the budget prediction and General Fund expenditure was £15,777 less than the previous year and £16,056 below the budget prediction. Compared to the pre-pandemic 2018-19 financial year figures, the 2020-2022 General fund income was £9,977 higher and the expenditure was £9,685 lower. At the end of the year there was a General Fund surplus of £27,588. ## _**Designated Funds**_ There was a small amount of income from bank interest. There was no expenditure in the Designated Funds. There was a net increase of £115. The Women’s Fellowship, which was an internal organisation, closed down and donated its funds to the church. The balance of the Women’s Fellowship Designated Fund was therefore transferred to the Redevelopment and Refurbishment Designated Fund. ## _**Restricted Funds**_ There was some income from bank interest and some expenditure on architect’s fees resulting in a net increase of £576. ## **Assets** No new assets were added during the financial year. The building has been revalued in accordance with the accounting policy. ## **Funds and Reserves** The General Fund reserves of the Church (i.e. the net current General Fund assets) at 31[st] August 2022 were £105,575, which is in line with the reserves policy. At 31[st] August 2022 the total net current assets of all the Church funds was £536,798 and the total of all the Church funds (i.e. including fixed assets) was £5,322,924. Page 8 of 23 **St Paul’s Methodist Church, Crawley** ## **REPORT OF THE TRUSTEES** ## **Year Ended 31 August 2022** ## **Going Concern** The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern **.** ## **Future Plans** We plan to worship and serve God, and to share His love with the community, by continuing to pursue the vision expressed in our mission statement. Our priorities for the year ahead include church growth, fellowship and discipleship, human resources, and building improvements. Our aim is to: - develop our worship so that it becomes more accessible, more relevant, and more helpful to our people as they seek to know God and worship Him. - reach new people, particularly young people and families, and engage them with us, so that they hear the Gospel message, come to know Jesus Christ as their Saviour, and grow as disciples. - help our people grow as disciples and to engage them in fellowship based on Bible study, prayer, mutual support and encouragement. - engage a greater proportion of our people in volunteering to help and serve in the church and in the community. - make our building fit for our mission purposes, focussing on reroofing, refurbishing, and remodelling the Sanctuary. We are seeking to follow where the Holy Spirit leads and, at this stage, we plan to pursue the following strategies to achieve our priority aims: - Make worship more accessible, welcoming, relevant and engaging, particularly for those who are unfamiliar with Church and for young people and families - Expand and enhance the provision for families, children and young people - Extend and enhance the fellowship groups and reshape the pastoral support system - Promote and share more widely all that St Paul’s offers - Help our people recognise and develop the gifts that God has given them and encourage them to respond to the opportunities to use these gifts in the church and in the community. - Progress the Sanctuary Project (reroofing and refurbishment), install new AV systems, and improve other parts of the building. We also plan to continue running all the activities listed in the activities section of this report. Page 9 of 23 **St Paul’s Methodist Church, Crawley** **REPORT OF THE TRUSTEES** ## **Year Ended 31 August 2022** ## **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 (CPD) by order of the annual conference. The members of St Paul’s Methodist Church Council are the Charity Trustees, membership being made up of church office holders, Minister, and representatives appointed by the Church at the General Church Meeting (the Church’s Annual General Meeting) and by the Church Council. Day to day management of the church is undertaken by the Church Leadership Team together with the Minister. The Leadership Team is appointed by the Church Council. ## **Basis of preparation and legal framework** The Charity’s annual report and accounts for the year ended 31 August 2022 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2015 as applicable to the Financial Reporting Standard (FRSSE) 2015 ## **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 Redhill and East Grinstead Circuit which is part of the South East District and is also accountable to the Methodist Conference. ## **Risk Management** The major risks have been identified and recorded by the Trustees with professional advice taken as required. A regular annual review process is undertaken and recorded. Income and Expenditure is being monitored in total and is compared with the approved annual budget on a quarter yearly basis to detect trends as part of the risk management process to avoid unforeseen calls on reserves. ## **Safeguarding** St Paul’s Methodist Church commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches. St Paul’s Methodist Church commits itself to the provision of support, advice and training for lay and ordained people 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 General Reserves Policy for the Church is to hold a minimum sum equivalent to 6 months’ average expenditure. This should be sufficient to meet any unforeseen item of major expenditure on the church building and / or 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. Page 10 of 23 **St Paul’s Methodist Church, Crawley** ## **REPORT OF THE TRUSTEES** ## **Year Ended 31 August 2022** ## **Investment Policy** A low-risk liquid position is maintained. The Deposit Fund administered by the Central Finance Board of the Methodist Church is utilised to deposit any funds surplus to immediate requirements. ## **Exemptions from Disclosure** There are no exemptions from disclosure. ## **Funds held as custodian trustee on behalf of others** The Church holds no funds as a custodian trustee on behalf of others. Page 11 of 23 **St Paul’s Methodist Church, Crawley STATEMENT OF FINANCIAL ACTIVITY** ## **Year Ended 31 August 2022** ||**Notes**|**Unrestricted**|**Designated**|**Restricted**|**Total**|**Prior year**| |---|---|---|---|---|---|---| |||**funds**|**funds**|**funds**|**funds**|**total funds**| |**_Income and endowments from:_**||||||| |Donations and legacies|4|||||| |Pledges and offerings||44,405|—|—|44,405|46,539| |Donations||2,043|—|—|2,043|1,520| |Gift Aid tax refunds||10,597|—|—|10,597|10,707| |Legacies||—|—|—|—|6,000| |Income from charitable activities|5|||||| |Fund raising||49|—|—|49|23| |Loaves and Fishes||5,577|—|—|5,577|205| |Other charitable activities||130|—|—|130|7| |Other trading activities|6|||||| |Lettings||65,455|—|—|65,455|30,672| |Investments|7|376|115|1,633|2,124|693| |**Total income**||**128,632**|**115**|**1,633**|**130,380**|**96,366**| |**_Expenditure on:_**||||||| |Salaries, NIC and pension costs|8|21,414|—|—|21,414|11,003| |Circuit Asessment||39,000|—|—|39,000|39,000| |Maintenance of Church buildings and property|11|11,525|—|1,057|12,582|34,094| |Utilities (insurance, energy, water, etc)|12|15,965|—|—|15,965|16,058| |Grants and Donations|13|2,469|—|—|2,469|371| |Loaves and Fishes||4,801|—|—|4,801|—| |Other expenditure|14|5,870|—|—|5,870|3,229| |**Total expenditure**||**101,044**|**—**|**1,057**|**102,101**|**103,754**| |**Net income / (expenditure) resources before transfer**||**27,588**|**115**|**576**|**28,279**|**(7,388)**| |**_Transfers_**||||||| |Gross transfers between funds - in||—|446|—|446|—| |Gross transfers between funds - out||0|(446)|—|(446)|—| |**_Other recognised gains / losses_**||||||| |Gains on revaluations, fixed assets, charity's own use|15|325,648|—|—|325,648|—| |**Net movement in funds**||**353,236**|**115**|**576**|**353,927**|**(7,388)**| |**_Reconciliation of funds_**||||||| |**Total funds brought forward**||**4,538,465**|**38,950**|**391,583**|**4,968,997**|**4,976,386**| |**Total funds carried forward**||**4,891,701**|**39,064**|**392,159**|**5,322,924**|**4,968,997**| _Note: Values are in British pounds sterling (GBP). Components may not sum to totals because of rounding to the nearest pound._ Page 12 of 23 ## **St Paul’s Methodist Church, Crawley** ## **BALANCE SHEET** ## **Year Ended 31 August 2022** ||**Notes**|**General**|**Designated**|**Restricted**|**At 31/08/2022 At 31/08/2021**|**At 31/08/2022 At 31/08/2021**| |---|---|---|---|---|---|---| |||**Fund**|**Funds**|**Funds**||| ||||||£|**£**| |**_Fixed assets_**||||||| |Tangible assets|15|4,786,126|—|—|4,786,126|4,460,478| |**Fixed assets**||**4,786,126**|**—**|**—**|**4,786,126**|**4,460,478**| |**_Current assets_**||||||| |Debtors|16|5,577|—|—|5,577|5,504| |Cash at bank and in hand|16|101,539|39,064|392,434|533,038|520,714| |**Current assets**||**107,117**|**39,064**|**392,434**|**538,615**|**526,218**| |**_Liabilities_**||||||| |Creditors: Amounts falling due in one year|17|1,542|—|275|1,817|17,698| |**Net current assets less current liabilities**||**105,575**|**39,064**|**392,159**|**536,798**|**508,519**| |**Total assets less current liabilities**||**4,891,701**|**39,064**|**392,159**|**5,322,924**|**4,968,997**| |**Total net assets less liabilities**||**4,891,701**|**39,064**|**392,159**|**5,322,924**|**4,968,997**| |**_Represented by_**|20|||||| |**_Unrestricted_**||||||| |Unrestricted - General fund||4,891,701|—|—|4,891,701|4,538,465| |**_Designated_**||||||| |Designated - Hymn Book Fund||—|100|—|100|100| |Designated - Outreach Hospitality||—|510|—|510|510| |Designated - Redevelopment & Refurbishment||—|38,426|—|38,426|37,865| |Designated - Benevolence||—|28|—|28|28| |Designated - WF - Internal Organisation||—|—|—|—|446| |**_Restricted_**||||||| |Restricted - Redevelopment & Refurbishment||—|—|392,159|392,159|391,583| |**Funds of the church**||**4,891,701**|**39,064**|**392,159**|**5,322,924**|**4,968,997**| _Note: Values are in British pounds sterling (GBP). Components may not sum to totals because of rounding to the nearest pound._ Page 13 of 23 **St Paul’s Methodist Church, Crawley NOTES TO THE FINANCIAL STATEMENTS** ## **Year Ended 31 August 2022** _In the following notes, values are in British pounds sterling (GBP). The components of tables may not sum to totals because of rounding to the nearest pound_ **.** ## **1. Basis of accounting** The financial statements have been prepared under the Charities Act 2011 in accordance with the 2015 version 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 lreland (FRS 102) as amended by the update bulletin (effective 1 January 2015). ## **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. Details of each material fund are disclosed in note 20. Any funds may be represented by more than just cash. ## **3. Accounting policies** ## **Basis** 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. ## **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 more than £3,000. The freehold property is shown at cost, based on the insurer’s valuation. Page 14 of 23 **St Paul’s Methodist Church, Crawley NOTES TO THE FINANCIAL STATEMENTS Year Ended 31 August 2022** ## **Depreciation** Assets having an initial cost of £3,000 or less are written off in full in the year of acquisition. Furniture and Fittings of a durable nature having an initial cost greater than £3,000 are depreciated at the rate of 33.33% per annum on a straight-line basis. Computer and Electronic equipment having an initial cost greater than £3,000 are depreciated at 50% per annum on a straight-line basis. ## **Investment Properties** Investment properties - no property is currently deemed to not be held 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. 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. ## **Creditors** Creditors include outstanding items relating to utilities, telephones, etc. in August **.** ## **Volunteers** A certain amount of time is expended on the charity's activities, which is donated free of charge. lt is not possible to quantify the value of time given and accordingly it is neither recorded as donated income or as expense in the financial statement. ## **4. Donations and legacies** |**Charitable activities**
1200 - Envelope Scheme & Direct bank receipts
1220 - Offering - Loose Cash
1230 - Donations
1260 - Contributions From Ext Orgs
1250 - Tax Reclaimed On Gift Aid
1255 - Legacies
**_Donations and legacies Totals_**
1340 - Other Fund Raising
1410 - Loaves & Fishes
1400 - Fees - Weddings, Funerals etc
1420 - Refreshments At Services
**_Income from charitable activities_**
**_Totals_**|**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
44,111
—
—
44,111
46,211
294
—
—
294
328
783
—
—
783
1,100
1,260
—
—
1,260
420
10,597
—
—
10,597
10,707
—
—
—
—
6,000| |---|---| ||| ||57,044
—
—
57,044
64,766
**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
49
—
—
49
23
5,577
—
—
5,577
205
130
—
—
130
—
—
—
—
—
7| ||| ||5,757
—
—
5,757
235| ## **5. Charitable activities** Page 15 of 23 **St Paul’s Methodist Church, Crawley NOTES TO THE FINANCIAL STATEMENTS** **Year Ended 31 August 2022** ## **6. Other trading activities** |**nvestment income**
1300 - Property Lettings
**_Other trading activities Totals_**
1510 - CFB General Dep a/c Interest
1511 - CFB Redev Dep a/c Interest
1514 - CFB Project Dep a/c Interest
**_Investments Totals_**|**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
65,455
—
—
65,455
30,672| |---|---| ||| ||65,455
—
—
65,455
30,672
**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
376
—
—
376
79
—
115
—
115
36
—
—
1,633
1,633
578| ||| ||376
115
1,633
2,124
693| ## **7. Investment income** The Church holds three interest-bearing Methodist Church Central Finance Board (CFB) deposit accounts 1. **CFB General Deposit Account** : used primarily to hold on deposit General and Benevolence funds that are not immediately required. 2. **CFB Redevelopment Deposit Account:** used to hold on deposit Redevelopment and Refurbishment designated funds until they are required 3. **CFB Project Deposit Account:** used to hold on deposit the Redevelopment and Refurbishment restricted funds until they are required. ## **8. Paid employees** |**_Salaries, NIC and pension costs_**
4010 - Salaries - Cleaners
4011 - Salaries -Lettings
**_Salaries, NIC and pension costs_**
**_Totals_**|**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
11,836
—
—
11,836
6,547
9,578
—
—
9,578
4,456| |---|---| ||| ||21,414
—
—
21,414
11,003| The Church has two part-time paid employees and the average salary was £10,707 per annum. ## **9. Paid trustees** Vanessa Collins, Trustee, is employed as a cleaner and was paid £4,184.70 during the 2021-22 financial year. ## **10. Fees for examination or audit of the accounts** 2020-21 Independent Examination Fee £300 2021-22 Independent Examination Fee £300 (provision) Page 16 of 23 **St Paul’s Methodist Church, Crawley NOTES TO THE FINANCIAL STATEMENTS** **Year Ended 31 August 2022** ## **11. Maintenance of Church buildings and property** |**Utilities**
**_Maintenance of Church buildings and property_**
4200 - Property Maintenance
4210 - Property Redevelopment
4225 - Grounds Maintenance
4250 - Window Cleaning
4252 - Cleaning Materials
4255 - Cleaning
**_Maintenance of Church buildings_**
**_and property Totals_**
4220 - Gas
4230 - Electricity
4240 - Water
4245 - Waste Disposal
4260 - Telephone and Broadband
5050 - Insurance
**_Utilities (insurance, energy,_**
**_water, etc) Totals_**|**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
9,066
—
—
9,066
19,914
—
—
1,057
1,057
13,832
1,214
—
—
1,214
(1,175)
—
—
—
—
198
1,246
—
—
1,246
863
—
—
—
—
462| |---|---| ||| ||11,525
—
1,057
12,582
34,094
**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
5,372
—
—
5,372
7,261
4,561
—
—
4,561
2,066
3
—
—
3
857
1,033
—
—
1,033
1,029
503
—
—
503
572
4,492
—
—
4,492
4,273| ||| ||15,965
—
—
15,965
16,058| ## **12. Utilities** ## **13. Grants and donations** |**Other expenditure**
2000 - Gifts & Donations
2300 - Benevolence - Disbursements
6000 - Connexional/Other Contribs
**_Grants and Donations Totals_**
2100 - Worship Resources
2110 - Presentation Bibles, Candles
2130 - Printing, Postage & Stationery
3010 - Other Catering Expenses
3025 - Publicity
3040 - Church Growth
3050 - Web Site development
4205 - Property Letting Expenses
4300 - Miscellaneous Expenses
5000 - Treasurer/Stewardship Expenses
5001 - Bank charges
5010 - Professional Fees
**_Other expenditure Totals_**|**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
219
—
—
219
—
—
—
—
—
371
2,250
—
—
2,250
—| |---|---| ||| ||2,469
—
—
2,469
371
**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
1,445
—
—
1,445
868
114
—
—
114
—
873
—
—
873
1,109
215
—
—
215
—
56
—
—
56
—
1,273
—
—
1,273
23
193
—
—
193
175
1,032
—
—
1,032
672
165
—
—
165
32
75
—
—
75
75
130
—
—
130
—
300
—
—
300
275| ||| ||5,870
—
—
5,870
3,229| ## **14. Other expenditure** Page 17 of 23 **St Paul’s Methodist Church, Crawley NOTES TO THE FINANCIAL STATEMENTS** ## **Year Ended 31 August 2022** ## **15. Tangible assets** ## **This Year (2021-2022)** ||**Church (non-investment)**|**Fixtures, fittings, and**|**Total**| |---|---|---|---| ||**land and buildings**|**Equipment**|| ||**£**|**£**|£| |**Cost or valuation**|||| |At beginning of the year|4,460,478|-|4,460,478| |Additions|-|-|-| |Disposals|-|-|-| |Revaluations|325,648|-|325,648| |Transfers|-|-|-| |**_At end of the year_**|4,786,126|-|4,786,126| |**Depreciation and impairments**|||| |At beginning of the year|-|-|-| |Disposals|-|-|-| |Depreciation|-|-|-| |Impairment|-|-|-| |Transfers|-|-|-| |**_At end of the year_**|-|-|-| |Net book value at beginning of the year|4,460,478|-|4,460,478| |**Net book value at end of the year**|**4,786,126**|**-**|**4,786,126**| ## **Previous Year (2020-2021)** ||**Church (non-investment)**|**Fixtures, fittings, and**|**Total**| |---|---|---|---| ||**land and buildings**|**Equipment**|| ||**£**|**£**|£| |**Cost or valuation**|||| |At beginning of the year|4,460,478|-|4,460,478| |Additions|-|-|-| |Disposals|-|-|-| |Revaluations|-|-|-| |Transfers|-|-|-| |**_At end of the year_**|4,460,478|-|4,460,478| |**Depreciation and impairments**|||| |At beginning of the year|-|-|-| |Disposals|-|-|-| |Depreciation|-|-|-| |Impairment|-|-|-| |Transfers|-|-|-| |**_At end of the year_**|-|-|-| |Net book value at beginning of the year|4,460,478|-|4,460,478| |**Net book value at end of the year**|**4,460,478**|**-**|**4,460,478**| Page 18 of 23 **St Paul’s Methodist Church, Crawley NOTES TO THE FINANCIAL STATEMENTS Year Ended 31 August 2022** ## **16. Analysis of current assets** |**Analysis of current assets**||| |---|---|---| |**_Debtors and prepayments_**|**This year**|**Last year**| |Prepayments|3,274|3,250| |Accrued income|2,303|1,995| |Other debtors|-|258| |**_Total debtors and prepayments_**|**5,577**|**5,504**| |**_Analysis of cash at bank_**|**This year**|**Last year**| |Bank balance held in HSBC Bank|9,210|14,937| |Bank balance held in CFB|523,828|505,331| |Bank balance held in Nationwide Bank|-|446| |**_Total Cash at Bank_**|**533,038**|**520,714**| ## **17. Analysis of current liabilities and long-term creditors** |**_Current Liabilities_**|**This year**|**Last year**| |---|---|---| |Trade Creditors|1,239|17,108| |Other Creditors|577|590| |**_Total Current Liabilities_**|**1,817**|**17,698**| ## **18. Capital commitments and contingent liabilities** At the 31st August 2022 the Church has no capital commitments. No Contingent liabilities were identified at 31st August 2022. ## **19** . **Loans and creditors due after one year** There were no creditors due after one year in the financial year 2021-2022. Page 19 of 23 **St Paul’s Methodist Church, Crawley NOTES TO THE FINANCIAL STATEMENTS Year Ended 31 August 2022** ## **20. Detailed analysis of individual fund movements** ## _Unrestricted funds_ **General Fund:** for the running costs of the Church and the Church building, including the Church activities, the Circuit Assessment and any costs not covered by the other funds. ## _Designated funds_ **Hymn Book Fund:** for replacing and/or updating hymn books. **Redevelopment & Refurbishment Fund:** for redeveloping and refurbishing the Church buildings and resources. **Benevolence Fund:** for disbursements to those in need and support for those in poverty. **Outreach Hospitality Fund:** for funding refreshments and other hospitality expenses for outreach events and activities. **Women's Fellowship Fund:** the Women’s Fellowship, which was an internal organisation, closed down and donated its funds to the church Redevelopment and Refurbishment designated fund. ( _This is shown as a transfer in the fund movement table for 2021-2022 below)_ ## _Restricted funds_ **Redevelopment & Refurbishment Fund:** for redeveloping and refurbishing the Church buildings. All donations given specifically for the purpose of this fund, and any proceeds from fundraising specifically advertised as raising money for this purpose, are placed in this fund. It complements the identically named designated fund above. ## **This Year (2021-2022)** |**Fund and type**|**Fund balances**|**Incoming**|**Outgoing**|**Transfers**|**Gains and**|**Fund balances**| |---|---|---|---|---|---|---| ||**brought forward**|**Resources**|**Resources**||**Losses**|**carried forward**| |**Unrestricted**||||||| |General fund|4,538,465|128,632|101,044|—|325,648|4,891,701| |**Sub-totals**|**4,538,465**|**128,632**|**101,044**|**—**|**325,648**|**4,891,701**| |**Designated**||||||| |Hymn Book Fund|100|—|—|—|—|100| |Outreach Hospitality Fund|510|—|—|—|—|510| |Redevelopment & Refurbishment|37,865|115|—|446|—|38,426| |Benevolence Fund|28|—|—|—|—|28| |Women's Fellowship Fund|446|—|—|(446)|—|—| |**Sub-totals**|**38,950**|**115**|**—**|**—**|**—**|**39,064**| |**Restricted**||||||| |Redevelopment & Refurbishment Fund|391,583|1,633|1,057|—|—|392,159| |**Sub-totals**|**391,583**|**1,633**|**1,057**|**—**|**—**|**392,159**| |||||||| |**Totals**|**4,968,997**|**130,380**|**102,101**|**—**|**325,648**|**5,322,924**| Page 20 of 23 **St Paul’s Methodist Church, Crawley** ## **NOTES TO THE FINANCIAL STATEMENTS Year Ended 31 August 2022** ## **Previous Year (2020-2021)** |**Fund and type**|**Fund balances**|**Incoming**|**Outgoing**|**Transfers**|**Gains and**|**Fund balances**| |---|---|---|---|---|---|---| ||**brought forward**|**Resources**|**Resources**||**Losses**|**carried forward**| |**Unrestricted**||||||| |General - General fund|4,533,982|89,751|85,267|—|—|4,538,465| |**Sub-totals**|**4,533,982**|**89,751**|**85,267**|**—**|**—**|**4,538,465**| |**Designated**||||||| |Hymn Book Fund|100|—|—|—|—|100| |Outreach Hospitality Fund|510|—|—|—|—|510| |Redevelopment & Refurbishment Fund|31,829|6,036|—|—|—|37,865| |Benevolence Fund|28|—|—|—|—|28| |Women's Fellowship Fund|446|—|—|—|—|446| |**Sub-totals**|**32,913**|**6,037**|**—**|**—**|**—**|**38,950**| |**Restricted**||||||| |Redevelopment & Refurbishment Fund|409,491|578|18,487|—|—|391,583| |**Sub-totals**|**409,491**|**578**|**18,487**|**—**|**—**|**391,583**| |||||||| |**Totals**|**4,976,386**|**96,366**|**103,754**|**—**|**—**|**4,968,997**| ## **21. Related party transactions** |**Name of related party**|**Relationship**|**Description of transaction**|**Payments to**|**Value of gifts to**| |---|---|---|---|---| ||||**related party**|**related party**| ||||**during the year**|**during the year**| ||||**£**|**£**| |Redhill and East Grinstead|Methodist Church|Payment of Circuit Assessment|39,000|-| |Methodist Circuit||||| |**_Total Related Party_**|||**39,000**|**-**| |**_Transactions_**||||| ## **22. Donations** Donations made to other organisations by the Church from Church funds or from Internal Organisation funds which are not itemised elsewhere. A Donation of £2,250 was made to the Methodist Church Pension Fund _(Please see note 13, Connexional and Other Contributions)_ ## **23. Events after the reporting period** There were no reportable events after the reporting period. Page 21 of 23 **St Paul’s Methodist Church, Crawley** ## **DECLARATION Year Ended 31 August 2022** This Report of the Trustees and these Financial Statements were approved by the Church Council on 13 November 2022 and signed on behalf of the Church Council by _Signature:_ _Name:_ Page 22 of 23 **St Paul’s Methodist Church, Crawley** ## **INDEPENDENT EXAMINER’S REPORT To the Trustees of St Paul’s Methodist Church** This Report is on the Church Accounts for the year ended 31[st] August 2022 ## **Respective responsibilities of Trustees and Examiner** The Church's trustees are responsible for the preparation of the accounts. The Church's trustees consider that an audit is not required for this year under Section 144 of the Charities Act 2011 (effective January 2015) and that an independent examination is needed. It is my responsibility to: - examine the accounts under section 145 of the Charities Act 2011; - to follow the procedures laid down in the general Directions given by the Charity Commission under Section 145(5)(b) of the Charities act; and - to state whether particular matters have come to my attention. ## **Basis of Independent Examiner’s Report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below. ## **Independent Examiner’s Statement** In connection with my examination, no matter has come to my attention: - (1) which gives me reasonable cause to believe that in any material respect the requirements: - to keep accounting records in accordance with Section 130 of the Charities Act 2011. - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or - (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Name: Yvette How MAAT Signature: Relevant Professional qualification or body: MAAT Address: 6 Frailey Close, Maybury, Woking, GU22 8EB Date: 12 May 2023 Page 23 of 23