2022-08-31-accounts

Church Accruals Accounts 2021-2022

THE METHODIST CHURCH

ANNUAL REPORT AND ACCOUNTS (ACCRUALS BASIS) for the year ended 31 August 2022

Epsom Methodist Church

Registered Charity - Registration number

1127787 ~~—_~~

Circuit No 35/39 ~~ee~~

~~ee~~	~~ee~~	Circuit No ~~ee~~
Ministers		Rev Catherine Hutton,Rev UngSoon Nguangand Mr Josh Selfe
Church Stewards		Mrs Kathryn Thompson
		Mrs Val Imms
		Mr Simon Jump
		Mr Mark Angel
		Mr Robert Hill
		Mrs Katharine Castledine
Church Treasurer	Mr Richard Smith ~~OO~~

Epsom Methodist Church Trustees' Annual Report

Contents

Contents
	Page
Introduction, Mission and Review, Prayer, Mission & Outreach	1
Pastoral Work, Worship, Youth Pastor, Children & Families Work, Catherine's calling	2
Summary of Special Events taking place during the year	3
Regular Events taking place during the year	4
Financial performance review	5
Expenditure, Outlook for the year 2022/23, Conclusions	6
Review of funds, valuation, reserves, plans for 2022/23	7
Basis of preparation and legal framework	8
Aims & organisation, Public benefit, Trustee training, Related parties	9
Risk Management, Safeguarding	10
Statement of Financial Activities (2021-2022)	11
Statement of Financial Activities (2020-2021)	12
Balance Sheet	13
Cash Flow	14
Note 1 Basis of accounting and accounting policies	15
Note 2 Collections and gift aid	16
Note 3 Donations	16
Note 4 Legacies	16
Note 5 Income for the use of the premises	16
Note 6 Roots (coffee shop)	16
Note 7 Nursey	17
Note 8 Interest	17
Note 9 Trust fund management charges	17
Note 10 Mission and Outreach	18
Note 11 Property utilities and maintenance	18
Note 12 Administration	18
Note 13 Salaries and associated costs	19
Note 14 Circuit share	19
Note 15 Donations to charities	19
Note 16 Other expenditure	20
Note 17 Transfers between funds	20
Note BS1 Church buildings	21
Note BS2 Investments	21
Note BS3 Debtors and prepayments	22
Note BS4 Analysis of cash at bank	22
Note BS5 Analysis of current liabilities and long term creditors	22
Note BS6.1 General fund	23
Note BS6.2 Designated funds	23
Note BS7.1 Chinese Congregation fund	24
Note BS7.2 Other restricted funds	24
Note BS8 Endowment funds	25
Note ON1 Capital commitments and contingent liabilities	25
Note ON2 Loans and creditors due after one year	25
Note ON1 Related party transactions	26
Chinese Congregation report	27
Church Council members	28
Declarations	29
Independent Examiner’s Report to the Trustees	30

Epsom Methodist Church TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

The Mission Statement of Epsom Methodist Church

Our purpose is to respond to God’s love in Christ for everyone by being a focus in the town for Christian teaching, worship and care.

Review of the year September 2021 to August 2022

It was good to be able to begin the move out of Covid restrictions in September as we saw the restart of the 9am and 10:30 services whilst still retaining the live-streaming and on-demand provisions. We have been able to follow several sermon series based on different themes and supported by study booklets. We have gradually seen the return of people to church as well as welcoming a number of new people but are aware that membership numbers are falling. It was therefore decided in the Autumn to establish a Ministries Audit Group with a brief to reflect on the way forward. This became particularly relevant when Chris Shaw moved on in April and following Catherine’s Calling to become the Circuit Superintendent from September 2023. The Group recognised that EMC is doing well in providing a welcoming environment for people to enter the life of the church but could do better at taking them on a journey of faith and discipleship. The recommendations made were that we needed to consider filling the following posts:

• A Mission and Outreach Pastor (full-time)

• A Pastoral Worker (part-time)

• A Worship Pastor (part-time)

• A Youth Chaplain (part-time)

• Families and Children’s support worker (part-time and already in post) dd l d ( ) Prayer will be at the centre of all we do

Prayer

Prayer meetings happen weekly and monthly. A prayer sheet is sent out by mailchimp weekly and a Prayer Pyramid system is used as needed. A Prayer Breakfast was held at church in September and a special Prayer Day was organised in June which attracted 45 people.

We would hope next year to:

• introduce more specific prayer for the community and prayer walking as part of our outreach.

• encourage more people to want to pray together and make more use of prayer ministry.

• set up a Prayer Room/Space available for anyone to use within the church building.

Mission and Outreach

Roots remains one of our main links with the community and has been able to increase its opening hours. It welcomes many of the young families attending other activities within the building. At Christmas we invited families to the Silhouette Theatre Company production of ‘The Twelve Days of Christmas’ as well as to the Carol Services and Christingle. ‘Goody bags’ were delivered to the elderly and those on their own. At Easter there was a ‘Churches Together in Epsom’ service in the Market Place. The Children’s ‘Criss Cross Show’ Holiday Club and the ‘Holiday at Home’ both ran in August. Eco-church with its monthly market stall and the recycling centre at EMC are ways of linking with the community. The Hope into Action House now has an empowerment worker and tenants. The website is set up and Weekly Notes are sent out by mailchimp or posted to those not on-line. Most House Groups are now meeting in person with just one still on zoom.

From September, Josh Selfe will be employed as our Mission and Outreach Pastor, and will help to direct our thinking. We would hope that we will:

• be better able to use Roots to reach people;

• have special events not only within the church but also in various venues in Epsom;

• continue to support the Hope into Action House;

Page 1

Epsom Methodist Church TRUSTEES' ANNUAL REPORT (continued)

Pastoral Work

The Pastoral team continues to meet with Pastoral links ongoing and reviewed and visits made to the housebound, including gifts taken at Christmas. The ‘Welcome Club’ and the ‘Friendship and Support Drop-in’ both meet monthly. Welcome Stewards welcome those who come on a Sunday. We are hoping to appoint a Pastoral Worker part time (20 hours/wk) who will help us to:

• be more effective in visiting, especially in being able to offer prayer and nurture faith.

• extend visiting to the wider community to include times of birth or marriage as well as illness or bereavement.

Worship

The two services on a Sunday morning are developing separate styles with the 9am being more traditional with hymns and expository preaching and the 10:30am ‘Together in Worship’ being more contemporary, multi-generational worship for all. We have a number of organists who are able to play at 9am and are pleased that we have new musicians joining the band at 10:30am. Since our musical director moved on, we are looking to appoint a Worship Leader:

• they would help in co-ordinating and directing the Sunday morning worship, bringing in fresh ideas and deepening our sense of worship.

• we would also like to plan a Worship/Teaching Day in the Spring.

• we would also like to plan a summer ‘Songs of Praise’.

Youth Pastor

The Uniformed Organisations continue to thrive at EMC, remaining very popular – They include Explorers. Scouts, Guides, Cubs, Brownies, Beavers, and Rainbows. We have occasional Parade Services and we have a few young people who come to church with a parent.

We would like to appoint a Youth Pastor who would:

• be able to get alongside the young people already attached to the church.

• act as a mentor, particularly within the uniformed organisations, and, for some, help them to think about faith issues.

• help us to become a church effective in caring for and nurturing young people.

• help us value all that they can offer us in terms of enthusiasm and freshness.

Families and Children’s Work

We have many children and families who come through the building at EMC. Many use Roots as a welcoming space. We are delighted that Cara Golding has agreed to be our Children and Family Worker. She is the ‘Ready Teddy Go’ Nursery Manager but has also initiated a group called ‘Friday for Families’ as a place of support and friendship for parents and a Homestart Parenting Program. She has been involved in the planning and running of a monthly Messy Church as well as helping at Messy Church-style services on a Sunday. She is also helping with the Children’s Holiday Club in August. We also have a group for younger children called Little Monkeys. On Sundays, children are usually invited to stay in the service and have been provided with boxes of ‘goodies’.

• We now want to improve our provision for children on a Sunday, making sure that they are all properly

Catherine’s Calling to Circuit Superintendency:

Catherine’s Calling to be the Circuit Superintendent was discussed in August and awaits confirmation

• This gives us a year to ensure that as a church we have in place the measures that will be needed to support Catherine in this new dimension to her work.

• It also means that constantly reflecting on the plans laid out above will be particularly important as we seek to see the church flourish and grow.

• All of this will be surrounded by prayer and a desire to see God’s Will done within EMC.

Page 2

Epsom Methodist Church TRUSTEES' ANNUAL REPORT (continued)

Events	A summary of Special Events taking place between Sep 2021 and Aug 2022
September 2021	9am and 10:30 services restart with Covidprecautions
	Roots re-opens for limited hours
	House Groups begin to meet inperson again(weekly,fortnightlyor monthly)
	Prayer and Breakfast Saturdaymorning gathering
	Zoom Night Prayer begins(weekly)
	‘Fridayfor Families’ starts(weekly)
	Harvest Festival Service
	MinistryAudit Team set up
October 2021	Eco-church stall at the Farmer’s Market(monthly)
	MessyChurch Light PartyDisco takesplace
	Silent Prayer meetinginperson(weekly)
November 2021	ReadyTeddyGo Nurseryre-opens
	FamilyParade Remembrance Sunday
	Eco-Friend initiative began
December 2021	Silhouette theatre Company‘Twelve Days of Christmas’ –familyevent
	CommunityCarols and Carols byCandlelight
	Christingle Service
	Midnight Communion and Christmas Dayfamilyservice
	GoodyBags delivered to those on their own
January 2022	Relaunch of the Welcome Club and Friendshipand Support Drop-in(fortnightly)
	Bitesize lunch-time services in Roots(weekly)
February 2022	Lent Series starts in Roots(weekly)
March 2022	Lent Series in Roots continues
April 2022	HolyWeek Retreat(dailyservices on zoom and inperson)
	Good FridayService + CTiE service in the Market Place
	Easter Sundaycelebration
	Chris Shaw moves on to Oswestry
	Church GCM + launch of report from MinistryAudit Team
May 2022	Advertisingfor Mission and Outreach Pastor and for a Pastoral Worker
	Christian Aid Week
	Re-launch of Little Monkeys(weekly)
June 2022	Announcement of an Empowerment Worker for the Hope into Action House
	Tenants now in the Hope into Action House
	Father’s Day‘MessyChurch All-Age Worship’ 10:30 SundayService
	Vision and GivingWeekend –‘A Dayto Pray’ on Saturday+ SundayServices
July 2022	Interviews for Mission and Outreach Pastor
	Josh Selfe appointed to come as Mission and Outreach Pastor from September
August 2022	Holidayat Home
	Children’s HolidayClub ‘The Criss Cross Show’
	Catherine’s Callingto be the Circuit Superintendent from Sep2023

Page 3

Epsom Methodist Church TRUSTEES' ANNUAL REPORT (continued)

Events Regular events taking place between September 2021 and August 2022	Events Regular events taking place between September 2021 and August 2022	Events Regular events taking place between September 2021 and August 2022
Frequency	Event	Brief Description
Daily	Roots Cafe	Open 9 am-2pm Monday– Friday
	ReadyTeddyGo	Nursery5 days a week
	Prayer Pyramid	Toprayfor urgentprayer issues
	Web site	Up to date information about all church activities
	Church Diary	Displayed in the Welcome Area-lettings and events
Weekly	Sunday services	Both English services live streamed and in person. Chinese services in Mandarin, Cantonese and English
	Dial a sermon	EMC sermons via a telephone
	Junior Church	Stopped during pandemic – currently personalised boxes in services
	Silent Prayer	Mondays 10.30am-11.15am. Open to all
	Little Monkeys	Tuesdays 10am-11:30am
	Fridayfor Families	Fridays 10am-11.30am
	Food Bank	Open on Friday1.15pm-3.15pm
	Girl Guiding	Meeting weekly on Mondays, Tuesdays, Thursdays and Fridays
	Scouting	Meeting weekly on Mondays, Tuesdays, Thursdays and Fridays
	Prayer sheet	WeeklyPrayer Mailchimpon Mondays
	Weekly Notes	On email via Mailchimp and monthly hard copy to those who do not have email
Weekly, Fortnightly or monthly	House Groups	A number of House Groups meet in person or on Zoom and follow service themes. (Bible Study guidesproduced)
Fortnightly	Friendship and Support Drop- in	Meets 1stThursday 2.30pm-4pm
	Welcome Club	Meets 3rdThursday2.30pm-4pm
Monthly	Church Prayer Meeting	2ndTuesdayof the month at 10:30am
	Messy Church	Most months, on either Saturday or Sunday morning
Annually	Holiday at Home	2/3 day meeting of fun and fellowship for the elderlyin earlyAugust
	Summer HolidayClub	3 day young people's event in August
	In Loving Memory service	Held every November for those who have lost loved ones in recentyears
	Christmas Together	Christmas Day Meal for 80 (hampers delivered duringCovid)
	Children’s Advent event	Theatre Groupevent

Page 4

Epsom Methodist Church

TRUSTEES' ANNUAL REPORT (continued)

Financial Performance Review

Introduction

Last year (2020/21) the church suffered considerably financially from the Covid pandemic and the lockdown. This stretched to August 2021 and the new financial year started with the church meeting openly but with Covid limitations. Congregations dropped, but by the end of the year had picked up considerably. However, they did not reach pre-Covid numbers. As a result, the Sunday collections dropped. However, the church is fortunate in that a large number of people donate by standing order which gives a regular and guaranteed income. This form of giving raised over £72,000 during the year. Other giving came from envelopes placed in the collection plate each Sunday which raised a further £22,800. This total of £94,800 constitutes a major part of the church’s giving income of £107,547. Added to this was gift aid of £26,362 bringing this total to £133,909. The other major part of the church’s income is from the use of its premises. Use by outside groups raised £60,366 and church users gave £28,745, a total of £89,111. A setback in our income was the fact that the world finance markets dropped and thus interest and financial returns on investments showed a loss of £13,751.

Church maintenance was kept to less than £1,000 over budget by pruning some of the major works anticipated. Administration was on target. The circuit contribution was under budget because Chris Shaw moved away to a new pastorate In May 2022, 3 months prior to the end of the year. Other items were within budget. As a result, the surplus at the end of the year was £20,574 against a budget of £15,500.

EMC took immediate measures in April 2020 to reduce expenditure, and this has continued throughout the current financial year from 1st September 2021 to 31 August 2022. We also reduced our contribution to the Sutton Circuit. We believe our staff, supported by our volunteers, are a vital part of our work and our outreach and we maintained our commitment to our staff. Details of the actions we took are set out below.

As a result, there was a deficit of £26,880 in the reserves in the 2021-22 year (as covered by this annual report). This was comprised of a surplus of £20,574 on the English Congregation's accounts, a surplus of £15,561 on the Chinese Congregation's accounts, a deficit of £61,162 on designated funds and a deficit of £1,853 on restricted funds. Most of the deficit on designated funds was due to essential stonework repairs costing £66,906 being carried out. This arose from the recent quinquennial structural report.

Budget for the year to August 2022

The Budget for 2021-22 was set as a deficit on the general fund of £42,250. During the year the church deliberately restricted its expenditure and the budgeted loss of £42,250 was turned into a surplus of £20,574.

Income for the year to 31 August 2022 for the English Congregation

• Giving: Giving (including the associated gift aid) was up over 7% on the previous year with improved cash collections at services. However, from streaming services, a significant number of new faces have appeared at Sunday worship and giving has shown an increase.

• Lettings by commercial users: The church actively returned to letting all of its premises and nearly all the slots were taken up. As a result, income from this rose to just over £60,000.

• Income from church users: we were fortunate and grateful to the Chinese congregation for maintaining their contribution. With the longer opening hours the nursery increased its contribution by about 10% to £15,720.

• Return on Investments: Despite the recovery from Covid, the financial state of the country meant that our reserves fell by £13,750. This was expected and the church recognises that over the past 3 years investment income has totalled £79,000.

Page 5

Epsom Methodist Church

TRUSTEES' ANNUAL REPORT (continued)

Expenditure

• Caretaking: Our two caretakers have been fully employed keeping our building safe, as well as carrying out a number of decorating and minor improvements to our buildings. They have done an excellent job.

• Maintenance: There was no major major expenditure on the premises and totalled only £8,696, half of the budget of £17,000.

• Coffee Shop “Roots”: Roots is regarded as a key opportunity for outreach from our church and many events were/are centred around its facilities. 2 years ago the income was £35,897. This year it was £33,767. This is encouraging and shows promise for the future.

• Mission and Outreach: In addition to the support for Roots we spent £6,628 on our Mission and Outreach - mostly on events for Children and Families including our August Holiday Club which was again thoroughly enjoyed by all the children who attended and warmly praised by their parents. This compares well with lst year's expenditure of £6,784.

• Administration: Our church office is ably run by two members of staff who deal with all the lettings, the covid risk assessments, the wide range of enquiries, keeping our church operating smoothly and without whose services we could not function. We are very grateful to them both.

Outlook for the year 2022/23

The English congregation recognises that it should look to use its reserves for the Glory of God’s Work and our outreach in our local community. A deficit of about £30,000 has therefore been set as our Budget for the year to 31 August 2022. This does assume that there are no further serious disruptions from a continuance of the Covid pandemic. We look forward to our church gradually returning to the vibrant community it was prior to the pandemic.

Conclusions

Our annual report comprises the combination of three distinct entities which are managed separately. The English Church Congregation, The Chinese Church Congregation and our Ready Teddy Go nursery. It is the English Church Congregation which is also responsible for our buildings, but each has its own management group and its own reserves which have been combined within this set of accounts. Each has ample reserves and has been blessed that the impact of the pandemic has not caused a serious depletion of their financial position even though it has not been practical to use these reserves to significantly improve our Outreach and Mission into our local community. However, the earlier section of this report has demonstrated the extent to which we have been able to run a number of the important activities which we traditionally used to do.

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Epsom Methodist Church TRUSTEES' ANNUAL REPORT (continued)

General Fund

As at 31 August 2022 the net current assets of the General Fund of the Church were £229,043 (balance sheet - net current assets - £219,043 plus £10,000 - savings bond investment), giving approximately 9 months cover for expenditure.

Gifts & Memorials Fund

This is an unrestricted fund holding mainly legacies and can be used for capital items and other projects in the church. Bequests received by the church are placed in this fund. The fund has been and will be used to continue to employ a lay pastor. The balance in this fund is £219,485 (BS6.2). The reduction is due to the repair of the stonework (£66,906) and investment in the Audio/Visual equipment (£15,945).

Children and Family Leader Fund

This fund (CFL) supports the appointment and cost of a CFL. Its current balance is £40,262 (BS6.2). This post was not renewed after the departure of the previous CFL. However, a new development in ministry has been prepared where up to 5 staff are recruited to carry out the functions of mission & outreach (30 hours pw), a worship pastor (12 hours pw), a pastoral worker (16 hours pw), a youth chaplain (18 hours pw), a children & families outreach worker (5-8 hours pw) and additional administrative support (12 hours pw). The church recognises that this is very adventurous and recognises that not all roles may be filled. Also, some appointments may cover more than one area of work. Funding for this has been taking place which is why the fund has grown already. A grant over 5 years of £105,000 has been secured from the Sutton Circuit model trust fund.

Book Fair Donations

Sadly the Book Fair is being discontinued.

Benevolence Fund

The Benevolence Fund is used for ministers to pay for charitable needs. Its current balance is £1,725 (BS7.2). It is now topped up from gifts.

Chinese Congregation Fund

This Chinese Congregation is an integral part of the church. However, they maintain their own accounts because of the specific method of their operation. Their income is from the regular giving of the congregation. Their expenditure is mainly their contribution to the main church for their use of the premises and for the future support of the ministry. The balance at the end of the year was £286,346 (2020/21 £270,785).

Nursery

The Nursery (Ready, Teddy, Go) opened the year with a balance of £64,074 (BS6.2). There was a deficit of £8,297 leaving a balance of £55,777. Their income is from the children who attend and grants from Surrey County Council.

Expenditure is mainly on salaries as well as activity material and the use of the church community hall. The Nursery recognises that it is struggling against changes in local nurseries and methods of funding and is looking for methods of operation to increase the number of children and therefore its income.

Valuation of Properties

The church was included in the balance sheet at historical cost for the first time in 2015/16.

Reserves Policy

The 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 assessment and to be able to continue, in the short term, funding planned activities in the event of any inability to raise the funds from the giving of the church and the use of the premises. The current level is £126,750 and £128,500 for next year 2022/23.

Plans for 2022/23

The main feature of the plans for 2022/23 and future years is the development of the ministry of the church as described above. This is very adventurous and requires significant commitment from the church. Already there is the encouragement in the appointment of Josh Selfe as the church mission pastor and he has actively taken his place as a part of the church leadership.

Page 7

Epsom Methodist Church TRUSTEES' ANNUAL REPORT (continued)

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(FRS 102) 2015

Full Name of Church

Full Name of Church Epsom Methodist Church Registration Charity Number 1127787 Date of registration 30th January 2009 Main communication address Church Office Epsom Methodist Church Ashley Road Epsom Methodist Church Surrey KT18 5AQ

The members of the Epsom Methodist Church meeting are the Charity Trustees , membership being made up of church office holders, Minister and representatives appointed by the church at the Annual General Meeting.

The full list of current Church Council members and key lay employees is shown in Appendix A to this report. The full list of those who served during the year is shown in Appendix B.

Mr Richard T Smith acted as the principal officer overseeing the day to day financial management and accounting for the church during the year.

Independent examiner

Jacob, Cavenagh and Skeet 5 Robin Hood Lane, Sutton, SM1 2SW

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

Page 8

Epsom Methodist Church TRUSTEES' ANNUAL REPORT (continued)

Aims and organisation

The Charity objective is:

Provide public acts of worship and sacred space for church members and non-members. Teach Christianity in sermons, courses and small groups. Visit the sick and bereaved. Promote Christianity in events and services. Provide children, youth, parents and senior citizens with a Christian ethos. Promote the mission of the church in activities for older people, parents, nursery and toddler groups. Support specific charities in the UK and overseas financially and with prayer.

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

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

b) Any charitable purpose for the time being of any Connexional, District, Circuit. local or other organisation of The Methodist Church; c) Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church; d) Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church

This is carried out in Epsom Methodist Church through:

Worshipping God through prayer, song and other acts of worship.

The organisation and resourcing of regular public acts of worship open to members of the church and non members alike. The teaching of Christianity through sermons, courses and small groups.

The resourcing of pastoral work including visiting the sick and bereaved. Taking religious assemblies in local schools.

Promotion of Christianity through the staging of events and services.

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

Public Benefit

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

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

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

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

The Trustees are appointed at the AGM of the church.

Trustee Training

A range of guidance produced by Methodist Connexion to support the effective running of the church , specifically the leaflet ‘The Role of a Trustee in The Methodist Church’ is given to all new Church Council members as induction to their role as trustees.

Related Parties

The Church is part of the Sutton Circuit which is part of the London District and is also accountable to the Methodist Conference.

The internal organisations linked to this church are: Scout and Guide groups Little Monkeys, weekly term-time morning group for parents and toddlers Roots Coffee Shop, church open weekdays for refreshments Nursery - Ready, Teddy, Go, nursery meeting every weekday morning Welcome Group Meeting 2nd and 4th Thursdays Table Talk, monthly meeting for mothers Friday for Families @EMC, weekly morning group for parents and toddlers Chinese Congregation and all their related groups

Page 9

Epsom Methodist Church TRUSTEES' ANNUAL REPORT (continued)

Risk Management

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

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

The top risks in the church were last identified as:

1) We do not have sufficient volunteers for all the desired initiatives and we do not yet know whether the pandemic will have negatively influenced the willingness of those volunteers whom we have used.

2) The Pandemic may well have changed the way in which “Church” and “Services” are delivered and received. We will need to revise our strategic direction and forward planning as soon as we have some idea of the longer-term implications.

3) While EMC has been blessed with ample reserves the Pandemic has had a material adverse impact on our annual budget and we will need to make adjustments if the level of deficits is not reduced materially.

These risks are being addressed in the Church Council, the Leadership Team and the Resources Committee.

Safeguarding

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

Methodist Connexional practice outlines commitment to the following principles:

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

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

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

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

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

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

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

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

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

The Epsom Methodist Church commits itself to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practices. The Epsom 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.

The Trustees' Annual Report was approved by the Church Council on 1st November 2022 and signed on behalf of the trustees by:

Rev Catherine Hutton

Church Council Chairman

Page 10

Name of Church

Epsom Methodist Church

Statement of Financial Activities(SOFA) for theyear ended 31 August 2022	Statement of Financial Activities(SOFA) for theyear ended 31 August 2022	Statement of Financial Activities(SOFA) for theyear ended 31 August 2022	Statement of Financial Activities(SOFA) for theyear ended 31 August 2022	Statement of Financial Activities(SOFA) for theyear ended 31 August 2022	Statement of Financial Activities(SOFA) for theyear ended 31 August 2022	Statement of Financial Activities(SOFA) for theyear ended 31 August 2022	Statement of Financial Activities(SOFA) for theyear ended 31 August 2022
	Notes to the accounts	General Fund (Unrestricted)	Chinese Congregation Fund (Restricted)	Designated Funds (Unrestricted)	Restricted Funds	Total 2021-22	Total 2020-21
Income from:		£	£	£	£	£	£
Donations and legacies
Collections and Gift Aid	2	133,909	103,512	-		237,421	216,860
Donations and Gift Aid	3	4,380	14,345	48,464	195	67,384	15,419
Legacies	4			10,925		10,925	52,793
Charitable activities
Contributions from church organisations	5	2,025				2,025	995
Use ofpremises byexternal users	5	60,366				60,366	24,337
Roots tradingincome	6			35,431		35,431	5,989
Nurseryincome	7			81,816		81,816	112,691
Other trading activities
Lettingof church flat	5	11,100				11,100	13,200
Investments
Interest	8	5,090	904	43	2	6,039	4,839
Other
Other income	13	-		-	-	-	26,271
Total		216,870	118,761	176,679	197	512,507	473,394
Expenditure on:
Raising funds
Trust fund management charges	9	1,176				1,176	818
Book Fair costs						-
Charitable activities
Mission and outreach	10	3,368				3,368	6,784
Rootsgoods and other expenses	6			14,077		14,077	2,976
Nurseryother expenses	7			6,337		6,337	24,028
Buildingutilities	11	29,956				29,956	23,611
Buildingmaintenance	11	9,379		66,906		76,285	12,879
Administration	12	12,227				12,227	8,064
Salaries	13	62,544	57,000	110,861		230,405	225,549
Circuit share	14	73,400		20,000		93,400	104,000
Donations to charities	15	3,500	23,609	-	2,050	29,159	22,809
Depreciation		1,013		12,292		13,305	14,242
Other
Other expenditure	16	-	10,851	-	-	10,851	11,771
Total expenditure		196,563	91,460	230,473	2,050	520,546	457,531
Netgains/(losses)on investments		(18,841)	-	-	-	(18,841)	35,063
Net income/(expenditure)		1,466	27,301	(53,794)	(1,853)	(26,880)	50,926
Transfers between funds	17	19,108	(11,740)	(7,368)	-	-	-
Other recognisedgains/(losses)		-	-	-	-	-	-
Gains/(losses) on revaluation of fixed assets		-	-	-	-	-	-
Actuarial gains/(losses) on defined benefit pension schemes		-	-	-	-	-
Othergains/(losses)		-	-	-	-	-	-
Net movement in funds		20,574	15,561	(61,162)	(1,853)	(26,880)	50,926
Reconciliation of funds		2,117,434	270,785	419,748	4,746	2,812,713	2,761,787
Total funds carried forward		2,138,008	286,346	358,586	2,893	2,785,833	2,812,713

For information only Money received and passed on to External Organisations Balance brought forward from last year

Offerings/Gifts - received for External Organisations Offerings/Gifts - passed to External Organisations Balance carried forward

2022	2021
5,005	1,981
5,005	1,981
-	-

Page 11

Name of Church

Epsom Methodist Church

Statement of Financial Activities(SOFA) for theyear ended 31 August 2021	Statement of Financial Activities(SOFA) for theyear ended 31 August 2021	Statement of Financial Activities(SOFA) for theyear ended 31 August 2021	Statement of Financial Activities(SOFA) for theyear ended 31 August 2021	Statement of Financial Activities(SOFA) for theyear ended 31 August 2021	Statement of Financial Activities(SOFA) for theyear ended 31 August 2021	Statement of Financial Activities(SOFA) for theyear ended 31 August 2021	Statement of Financial Activities(SOFA) for theyear ended 31 August 2021
	Notes to the accounts	General Fund (Unrestricted)	Chinese Congregation Fund (Restricted)	Designated Funds (Unrestricted)	Restricted Funds	Total 2020-21	Total 2019-20
Income from:		£	£	£	£	£	£
Donations and legacies
Collections and Gift Aid	2	125,280	91,580			216,860	205,591
Donations and Gift Aid	3	2,542	1,150	11,602	125	15,419	47,775
Legacies	4			52,793		52,793	58,688
Charitable activities
Contributions from church organisations	5	995				995	5,905
Use ofpremises byexternal users	5	24,337				24,337	41,380
Roots tradingincome	6			5,989		5,989	35,580
Nurseryincome	7			112,691		112,691	93,704
Other trading activities
Lettingof church flat	5	13,200				13,200	13,200
Investments
Interest	8	4,550	274	15	-	4,839	7,283
Other
Other income	13	3,471		22,800	-	26,271	22,602
Total		174,375	93,004	205,890	125	473,394	531,708
Expenditure on:
Raising funds
Trust fund management charges	9	818				818	759
Book Fair costs						-	5,251
Charitable activities
Mission and outreach	10	6,784				6,784	5,138
Rootsgoods and other expenses	6			2,976		2,976	17,339
Nurseryother expenses	7			24,028		24,028	6,836
Buildingutilities	11	23,611				23,611	40,170
Buildingmaintenance	11	11,786		1,093		12,879	17,293
Administration	12	8,064				8,064	6,753
Salaries	13	63,588	35,500	126,461		225,549	245,477
Circuit share	14	84,000		20,000		104,000	124,000
Donations to charities	15	3,500	16,655	-	2,654	22,809	16,960
Depreciation		2,189		12,053		14,242	13,598
Other
Other expenditure	16	-	11,771	-	-	11,771	5,568
Total expenditure		204,340	63,926	186,611	2,654	457,531	505,142
Netgains/(losses)on investments		35,063	-	-	-	35,063	(4,044)
Net income/(expenditure)		5,098	29,078	19,279	(2,529)	50,926	22,522
Transfers between funds	17	20,721	(11,003)	(9,718)	-	-	-
Other recognisedgains/(losses)		-	-	-	-	-	-
Gains/(losses) on revaluation of fixed assets		-	-	-	-	-	-
Actuarial gains/(losses) on defined benefit pension schemes		-	-	-	-	-
Othergains/(losses)			-	-	-	-	-
Net movement in funds		25,819	18,075	9,561	(2,529)	50,926	22,522
Reconciliation of funds		2,091,615	252,710	410,187	7,275	2,761,787	2,739,265
Total funds carried forward		2,117,434	270,785	419,748	4,746	2,812,713	2,761,787

For information only Money received and passed on to External Organisations Balance brought forward from last year

Offerings/Gifts - received for External Organisations Offerings/Gifts - passed to External Organisations Balance carried forward

2021	2020
1,981	7,069
1,981	7,069
-	-

Page 12

Epsom Methodist Church

Balance Sheet as at 31 August 2022

		Unrestricted	Chinese	Designated	Restricted	Totals this year		Totals last year
		General Fund	Congregation	(Unrestricted)	Funds
			Fund
			(Restricted)
		£	£	£	£	£		£
Tangible Fixed Assets*
	Notes
Church buildings	BS1	1,905,444				1,905,444		1,905,444
Equipment	BS1	3,521		43,061		46,582		43,942
Investmentproperties
Investments	BS2	10,000				10,000		10,000
Totalfixed assets		1,918,965		43,061		1,962,026		1,959,386
Current Assets
Debtors and Prepayments	BS3	33,986				33,986		79,881
Investments with TMCP	BS4	120,255		259,746		380,001		412,655
Central Finance Board Deposits	BS4	121,595	225,183		2,893	349,671		229,960
Cash at Bank and in hand	BS4	10,437	61,263	55,779		127,479		133,995
Total current assets		286,273	286,446	315,525	2,893	891,137		856,491
Creditors(due in under 1year)	BS5	67,230	100			67,330		3,164
Net current assets(liabilities)		219,043	286,346	315,525	2,893	823,807		853,327
Total assets less current liabilities		2,138,008	286,346	358,586	2,893	2,785,833		2,812,713
Loans and creditors due after 1year
Provisions for liabilities and charges
Net assets		2,138,008	286,346	358,586	2,893	2,785,833		2,812,713
Funds of the Church
General Fund(Unrestricted)	BS6.1	2,138,008				2,138,008		2,117,433
Chinese Congregation(Restricted)	BS7.1		286,346			286,346		270,785
Other Designated funds(Unrestricted)	BS6.2			358,586		358,586		419,749
Other Restricted funds	BS7.2				2,893	2,893		4,746
Total Funds		2,138,008	286,346	358,586	2,893	2,785,833		2,812,713

The financial statements were approved by the trustees on 1st November 2022 and were signed on their behalf

Rev Catherine Hutton

Page 13

Epsom Methodist Church

Statement of Cash Flows for year ended 31st August 2022

	2022	2021
	£	£
Cashflows from operating activities
Net cash provided by operating activities	109,288	(21,076)
Cashflows from investing activities
Interest receivable	6,039	4,839
Purchase of investments	(100,166)
Proceeds from sale of investments	100,815	31,350
Investment in property, plant and equipment	(15,945)	(6,225)
Net cash used in investing activities	(9,257)	29,964
Change in cash & cash equivalents in the reporting period	100,031	8,888
Cash and cash equivalents at the beginning of the reporting period	507,955	499,067
Cash & cash equivalents at the end of the reporting period	607,986	507,955
Classified on the Balance Sheet as:-
TMCP deposit	130,836	144,000
Central Finance Board Deposits	349,671	229,961
Cash at bank and in hand	127,479	133,994
	607,986	507,955
Reconciliation of net income/(expenditure) to net cashflow
from operating activities
Net income/(expenditure) from reporting activities (as per the
Statement of Financial Activities)	(26,880)	50,926
Adjustments for:-
Non-cash donations
Depreciation	13,305	14,241
Interest receivable	(6,039)	(4,839)
Gains/(losses) on investments	18,841	(35,063)
Net (income)/expenditure on endowment fund	-	-
(Increase)/decrease in debtors	45,895	(41,061)
Increase/(decrease) in creditors	64,166	(5,280)
Net cashprovided by operating activities	109,288	(21,076)

Page 14

Epsom Methodist Church

Notes to the Accounts

1 Basis of accounting and accounting policies

• i Basis of accounting

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), SORP(FRS102), as amended by Update Bulletin 1, and the Financial Reporting Standard applicable in the UK and Republic of Ireland, FRS 102.

• ii Public benefit entity

The Epsom Methodist Church meets the definition of a public benefit entity under FRS 102. It is an unincorporated charity with a main address of Epsom Methodist Church, Ashley Road, Epsom, K18 5AQ.

• iii 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. The accruals basis has been used and trustees present accounts that show a true and fair view of the Church's financial position and activities. The financial statements are prepared in pounds sterling rounded to the nearest pound.

iv Charities Act

The financial statements have been prepared under the Charities Act 2011 and the 2008 accounting and reporting regulations in order to be able to show a true and fair view, as required by the regulations.

• v Going concern

Based on the monetary assets and human resources available at 31 August 2022, the trustees believe that the Church is a going concern.

vi Income recognition

Income is brought into account when there is entitlement, the amount is reliably measurable and it is more likely than not that the economic benefit of the income will be forthcoming.

In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised. Further information on this matter is provided in the Trustees' Annual Report.

vii Expenditure

This is recognised when a liability is incurred, or a constructive obligation arises, where the amount is reliably measurable and it is considered more likely than not that there will be an outflow of economic benefit.

viii VAT

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

ix Tangible fixed assets

These are capitalised if they can be used for more than one year, and individually cost at least £1,000 and are written off over a specified number of years.

The freehold and/or long leasehold property is shown in the accounts at deemed historical cost representing the property's gross carrying value at time of being built. No depreciation is provided because the trustees consider the residual value of the property in its present condition to be not less than its insurance cost and, in the absence of any evidence of impairment, any depreciation provision for the buildings component of the property would be immaterial.

• x Monetary Investments

The Church's investments are deposited with TMCP as custodian trustees. The valuations, at market value, are those provided by TMCP.

TMCP is the legal owner and custodian trustee of all Methodist model trust property, including legacies, endowments and accumulated funds. Trust property is held for and on behalf of local managing trustees who are responsible for the day to day management of trust property. TMCP ensure that, through providing guidance and acting under their direction, the managing trustees comply with charity law and Methodist law and policy as determined by the Methodist Conference.

The funds that support the Church's other funds (as listed below) are held by TMCP in trustees interest funds on which interest is credited to the accounts each month. These are regarded as medium and long term investments.

xi Receivables and Payables; Bank and Cash

Debtors are stated at the amounts owed to the Church or prepaid by the church. Creditors are recognised at the amount expected to be settled.

xii Methodist Connexional Funds

The church pays an assessment/share quarterly to the Sutton Methodist Circuit. The District (a group of contiguous circuits) quarterly remits to The Methodist Church Fund most of the sum received from the Circuits. A small sum is retained by the District to meet its own costs.

Page 15

Epsom Methodist Church

Notes to the Accounts

2 Collections and gift aid

Collections and gift aid
	General	Chinese	2022	2021
Collection	107,547	89,746	197,293	179,647
Gift Aid	26,362	13,766	40,128	37,212
Total	133,909	103,512	237,421	216,859

3 Donations

	General fund	Chinese Congregation	Designated funds	Restricted funds	2022	2021
Donations to the churchgeneral fund	6,957				6,957	2,522
Donations towards the cost of thepremises	683				683	20
Donations for Children and Families Leader			48,464		48,464	11,602
Donations for Benevolence				195	195	125
Chinese Congregation donations		14,345			14,345	1,150
Transfers	(3,260)				(3,260)
Total	4,380	14,345	48,464	195	67,384	15,419

4 Legacies

A part (£10,000) of a legacy was received during the previous year. The balance of £42,293 was received during the year 2021-2022 and was included in the accounts as a debtor. A further bequest of £500 was also received.

5 Income from use of the premises

The income from the use of the premises by outside users was £60,366. The rental income from the caretaker's flat was £11,100 for the year (lower because of a change of tenant). In addition to these, £28,745 was received from church organisations who make a contribution (not a charge) towards the use of the premises.

	2022	2021
Church organisations	2,025	995
Received by transfer	26,720	25,220
External lettings	60,366	24,337
Rent from flat	11,100	13,200
Total	100,211	63,752

Church organisations which do not appear in this report contributed £2,025 for their use of the premises. Other church organisations which appear in this report contributed £26,720 (Nursery £15,720, Chinese £11,000) by transfer. This totalled £28,745 which was contributed by church organisations.

6 Roots

Roots is a coffee shop run by the church offering hot and cold drinks, snacks and light lunches. It also takes bookings for parties and business lunches. It is a significant part of the outreach of the church and following the Covid-19 pandemic started trading fully from September 2021. It is not intended to make a profit but, until the temporary closedown, was on target to break even. The church underwrites any loss on the year. Last year this was £4,627. This year it was £8,629. This support comes from the Mission and Outreach Fund and is a part of its budget. All income is from over the counter sales. The breakdown of costs is as follows:

Receipts from card and cashpayments	35469
Grant from church	8,629
Total income	44,098

Operatingcosts	14153
Wages	29,945
Total expenditure	44,098

Page 16

Epsom Methodist Church

7 Nursery

The Nursery, which is OFSTED approved, has been operating in the church for very many years. From January 2021 it runs every weekday in term time from 9.15am to 3.15pm and takes children from the surrounding area. It makes a donation, currently £1,310, each month for the use of the church hall. It has its own management committee comprising nursery staff and church members. Its operating costs each year are of the order of £100,000. It was incorporated into the church accounts in 2018/19. Its funding is from the parents' fees and grants from Surrey County Council. Its main expenditure is on staff wages and equipment and the use of the church Community Hall.

Opening balance		64,075
Income
SurreyCountyCouncilgrants	48,689
Othergrants and deposits	4,180
Fees	26,132
Deposits and donations	2,050
Fundraising	663
Families & Children's Worker support	9,525
Other income	102	91,341
Interest		43
Total income		91,384
Expenditure
Staff costs		77,385
Administration	4,869
Hall rent	15,720
Donations	0
Returned deposits	650
Equipment repairs	507
Other expenditure	550
Total expenditure(less staff costs)		22,296
Closing balance		55,778

Nursery expenses of £6,337 (see SOFA) comprise £22,296 less transferred printing costs of £239 and rent transferred to the church of £15,720.

8 Interest

Interest
	General	Chinese	**Designated **	Restricted	2022	2021
Interest	1,016				1,016	568
Dividends/Fixed interest received	4,074				4,074	3,982
Chinese Congregation CFB		904			904	274
Nursery			43		43	15
Restricted funds				2	2	0
Total	5,090	904	43	2	6,039	4,839

**9 **	Trust fund management charges	Trust fund management charges	Trust fund management charges	Trust fund management charges
	Fund	Notes 7-10	2022	2021
	17544	144	144	86
	19520	1,032	1,032	665
	20912	0	0	67
	21290 Hudson Bequest	0	0	0
	Total	1,176	1,176	818

Page 17

Epsom Methodist Church

10 Mission & Outreach

Mission & Outreach
Area of activity	2022	2021
Children	1,796	4,671
Adults	(348)	929
Teaching	1,673	86
Books	221	1,098
Eco Church	26	-
Total of direct spending	3,368	6,784
Transfer toprinting	38	19
Transfer to underwrite Roots	8,629	4,628
Total expenditure on Mission & Outreach	12,035	11,431

Mission and Outreach are at the heart of the church's work. This covers work with children and adults both within and outside the church. The work is described elsewhere in this report. Mission & Outreach is not expected to cover its costs, so a budget is set every year to enable the work to take place. Note that the figures for last year have been reallocated to conform to the equivalent for this year for comparison.

11 Property utilities and maintenance

Property utilities and maintenance
	**General **	Designated	Restricted	2022	2021
Cleaning	4,736			4,736	4,664
Utilities	17,923			17,923	11,825
Insurance	6,959			6,959	6,872
Flat	338			338	250
Total utilities	29,956			29,956	23,611
Maintenance and Repairs	9,379	66,906	0	76,285	12,879
Total	39,335	66,906	0	106,241	36,490

12 Administration

	2022	2021
Telephone	1,420	1,037
Administration	9,157	5,017
Accounts examination	1,650	2,010
Total	12,227	8,064

Page 18

Epsom Methodist Church

13 Salaries and associated costs

Salaries were paid to 11 staff and were as follows:

Salaries and associated costs Salaries were paid to 11 staff and were as follows:
	General	**Chinese **	Designated	2022	2021
Salaries	56,015		32,937	88,952	97,875
National Insurance Contributions	3,568		60	3,628	5,893
Pension Fund Contributions	1,449		0	1,449	1,606
Furloughpay	0		0	0	12,051
Apprenticeshiplevy	1,512		479	1,991
Nursery payroll costs	0		77,385	77,385	72,624
Chinese ministry	0	57,000		57,000	35,500
Total	62,544	57,000	110,861	230,405	225,549

The Chinese ministry is a payment to the Sutton Methodist Circuit for the full cost of this ministry. This comprises stipend, expenses, manse rent, council tax and water rates. £6,028 is received as a payment from the Malaysian Conference. The remaining £57,000 is underwritten by the Chinese Congregation. This is the first year when the Chinese Congregation has had to underwrite nearly all of the ministry costs.

Sarah Meech, the church Operations Manager, is also a trustee. This declaration is in the Constitutional Practice and Discipline (CPD) of the Methodist Church - Employees of managing trustees may become members of the body constituting those trustees ex officio or by election or appointment on the same basis as if they were not employees and may retain any increased benefits resulting from a subsequent change or changes to their terms of employment as if they were not trustees. (CPD Part 2 Model Trusts 2 Managing Trustees (2)). This year Sarah Meech was paid £16,432 (£14,069 in 2020/21). In year 2020/2021 Hannah de Bourcier was paid £29,320 and Simon de Bourcier £5,000. Both left the church employment by the end of financial year of August 2021.

14 Circuit share

Epsom Methodist Church is a part of the Sutton Circuit which is a group of churches in north east Surrey. The Sutton Circuit is responsible for the housing and payment of all the ministers in the circuit and it also makes a contribution to the London District who pass most of this to the Methodist Connexion which is the head of the church. The District acts mainly in an advisory role and has 2 chairs who oversee the 34 circuits in the district. The circuit payment to the district pays towards these chairs and their support staff. The circuit pays for its ministers' housing and stipends. Each of the churches in the Sutton Circuit is invited to make a share offer to the circuit for the funding of the ministry and this constitutes the budget for the circuit along with other income from the letting of unused houses. This year Epsom Methodist Church offered a share of £104,000 (£104,000 in 2020/21). This was taken from the General Fund (£84,000) and the Gifts & Memorials Fund (£20,000). Further to this, the church sought a reduction in the final quarter's payment of £10,600 (£26,000 down to £15,400) thus reducing the total for the year from £104,000 to £93,400. This was due to Chris Shaw leaving the circuit 3 months early in the full year. This was agreed by the Circuit Leadership. Because of the pandemic and its effect on the income of all the churches in the circuit, the circuit agreed to underwrite any loss on its budget by allowing the churches to offer all they could afford. As a result, Epsom had offered £104,000 for 2021/22.

Page 19

Epsom Methodist Church

15 Donations to charities

Donations to charities
	General	Chinese	**Designated **	Restricted	2022	2021
Methodist Church Mission in Britain Fund	500
Methodist Church TrainingFund	600
Methodist Church PropertyFund	1,350
Support for Presbyters and Deacons	300
Methodist Ministers' HousingFund	750				3,500	3,500
Donations supportingChinese ministry		23,609			23,609	16,655
Book Fair donations to charities			0		0	0
Benevolence Fund				2,050	2,050	2,654
Nursery
Total	3,500	23,609	0	2,050	29,159	22,809

16 Other expenditure

Other expenditure
	Chinese	Designated	2022	2021
Excess of accruals frompreviousyear for sundrycosts	10,851		10,851	11771
Total	10,851	-	10,851	11,771

17 Transfers between funds

The following transfers were made between funds.

	Transfers from	Transfers from	Transfers from	Transfers from	Transfers from
Transfers To	General Fund	Chinese	Roots	Nursery	CFL
Use of premises	26,720	(11,000)		(15,720)
Printing	1,055	(740)	(76)	(239)
Underwrite deficit	(8,629)		8,629
Salary of nursery leader				9,525	(9,525)
Provision of food for events	(38)		99		(61)
Total	19,108	(11,740)	8,652	(6,434)	(9,586)

Page 20

Epsom Methodist Church

BS1 Church Buildings

The church and other buildings have been valued at build price for each of the stages of their development. These are the stages recorded:

Original build cost	1914	£7,700
Construction of church hall and caretakers flat	1959	£18,000
Construction of transept	1962	£5,529
Construction of vestibule	1968	£3,258
Construction of Leyland Rooms	1984	£37,000
Church developmentphase 1 – addition to church and welcome area.	2008	£1,280,157
Church developmentphase 2 –youth hall	2012	£553,800
Total		£1,905,444

The Insurance value of the church at 31st August 2022 was £6,923,536 (31st August 2021 £6,725,722).

Church buildings and other major property

Church (non investment) land and buildings £	Church (non investment) land and buildings £	Other non investment land and buildings £	Investment properties (land and buildings) £	Other fixed assets including motor vehicles £	Fixtures, fittings and equipment £	Total £
Balance brought forward	1,905,444			-	143,324	2,048,768
Additions					15,945	15,945
Revaluations (+/-)
Disposals (-)
Balance carried forward	1,905,444	-	-	-	159,269	2,064,713
Accumulated depreciation
**Transfers (+/-) **
Balance brought forward					99,382	99,382
Depreciation charge for year					13,305	13,305
Revaluations (+/-)
Disposals (-)
Transfers (+/-)
Balance carried forward		-	-	-	112,687	112,687
Net book value
Brought forward	1,905,444	-	-	-	43,942	1,949,386
Balance carried forward	1,905,444	-	-	-	46,582	1,952,026

The boiler and fire doors are written down annually by 10% and the rest by 20% on a straight line basis.

BS2 Investments

Change in investment values

Burden Bequest, Hudson Bequest and National Savings Investment Bond

	2022	2021
Carrying (market)value at beginningofyear	10,000	16,022
Add: additions to investments at cost		32
Less: disposals at carryingvalue		6,054
Net gain(loss) on revaluation		0
Carrying (market)value at end ofyear	10,000	10,000
Deposit and Investment Funds at TMCP
	2022	2021
Carrying (market)value at beginningofyear	412,655	408,979
Add Interest on investments	958	484
Add Dividends/fixed interest received	4,074	3,982
Less: administration charge	(1,176)	(818)
Less net withdrawal of funds	(17,670)	-
Add: additions to investments at cost	100,166	-
Less: disposals at carryingvalue	(99,302)	(35,035)
Netgain/(loss)on revaluation	(19,704)	35,063
Carrying (market)value at end ofyear	380,001	412,655
Balances in TMCP funds by deposit and investment
	2022	2021
Balance in Deposit fund	122,768	232,474
Balance in Investment fund	130,836	144,001
Balance in CFB Short Fixed Interest Fund	32,676	36,180
Balance in Gilt funds	93,721
Total	380,001	412,655

Page 21

Epsom Methodist Church

BS3 Debtors and Prepayments

Debtors and Prepayments
	2022	2021
Prepaid assessments	21,250	26,000
Gift Aid due on General and other funds	10,199	9,221
Gift Aid due on Chinese congregation funds	-	-
Gift Aid due on Children & FamilyLeader fund
Balance of legacyreceived in 2021-2022	-	42,293
Roots stock atyear end	1,006	378
External use ofpremises	1,008
Unpaid tax and NIC	523	528
Unpaid utilities		-
Other debtors	-	1,461
Total debtors andprepayments	33,986	79,881

BS4 Analysis of cash at bank

Analysis of cash at bank
	2022	2021
Working Funds
Bank balance held in HSBC(General fund)	6,520	1,724
Bank balance held in CAF Bank(General fund)	3,917	8,103
Bank balance held in HSBC(Chinese Congregation)	61,263	60,094
Bank balance held in CAF Bank(Nursery)	55,779	64,074
Total of bank balances	127,479	133,995
CFB fund balances
CFB fund(English Congregation)	124,488	18,467
CFB fund(Chinese Congregation)	225,183	211,493
Total of CFB fund balances	349,671	229,960
Deposit Funds
Trust fund 17544	50,581	50,564
Trust fund 19520	329,420	362,091
Trust fund 20912	-	-
Total of deposit fund balances	380,001	412,655
Total cash, bank and trusts	857,151	776,610

The total for comparison with the balance sheet is the sum of the TMCP trusts, the CFB deposits and the bank balances. When they occur, the TMCP endowment funds are added in too (2021 comparison)

BS5 Analysis of current liabilities and long term creditors

Analysis of current liabilities and long term creditors
	2022	2021
Administration		712
Account examination	1,680	1,650
Incorrect donation returned to donor's bank	12,500
External use ofpremises	782
Provision for utilities	3,284
Stonework carried out duringAugust 2022	48,906
Provision for Chinese Congregation	100	802
Gift Aid on donation	78
Total	67,330	3,164

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Epsom Methodist Church

BS6 Unrestricted Funds

BS6.1 General Fund

General Fund
Fund Name	2021	Income	Expenditure	Transfer	Investment Gains	2022
General Fund	2,117,434	216,870	196,563	19,108	(18,841)	2,138,008
Fund Name	2020	Income	Expenditure	Transfer	Investment Gains	2021
General Fund	2,091,615	174,375	204,340	20,721	35,063	2,117,434

The main asset of the fund is the original build value of the church, £1,905,444. In addition the General fund maintains liquid assets which amount to £229,044 which are for use at the discretion of the trustees in the furtherance of the general objectives of the Church and which have not been designated for other purposes. The General Fund received by transfer £11,000 from the Chinese Congregation for their use of the premises.

BS6.2 Designated Funds

Designated Funds
Fund Name	2021	Income	Expenditure	Transfer	Value of stock	2022
Roots	-	35,431	44,083	8,652	-	-
Children & Families Leader	4,854	48,464	3,470	(9,586)	-	40,262
Gifts & Memorials	311,411	10,925	86,906	(15,945)	-	219,485
Nursery	64,074	81,859	83,722	(6,434)		55,777
Equipment	39,409		12,292	15,945	-	43,062
Totals	419,748	176,679	230,473	(7,368)	-	358,586
Fund Name	2020	Income	Expenditure	Transfer	Value of stock	2021
Roots	-	5,989	10,617	4,628	-	-
Children & Families Leader	30,868	20,603	46,617	-	-	4,854
Gifts & Memorials	283,280	52,793	24,662	-	-	311,411
Nursery	48,146	112,706	82,432	(14,346)		64,074
Equipment	47,893	3,569	12,053	-	-	39,409
Totals	410,187	195,660	176,381	(9,718)	-	419,748

Roots Coffee Shop provides a refreshment service to the church and the local community in a safe and friendly environment. It is not intended to be profit-making but would ideally break even. By the end of the year, the church transferred £8,629 from Mission & Outreach into its funds to cover the operating loss.

After a break of a year the church recognised the need for extra leadership. As a result Josh Selfe was appointed as the lay mission and outreach worker. He is funded from the CFL fund and if and when further appointments are made, this fund will encompass them.

The Gifts & Memorials Fund receives bequests from the estates of church members and others who have died. A bequest of £500 was received during the year. This fund covers part of the cost of the Lay Pastor Josh Selfe and other capital costs. These included the cost of repairing the church stonework and updating the audio/visual equipment.

Equipment is mainly the gas boiler, audio visual equipment used on the church premises, the setting up of the Roots coffee shop and the new organ and piano. The expenditure is the reduction in value as the equipment is written off.

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Epsom Methodist Church

BS7.1 Chinese Congregation Fund

Chinese Congregation Fund
Fund Name	2021	Income	Expenditure	Transfer	2022
Chinese Congregation	270,785	118,761	91,460	(11,740)	286,346
Fund Name	2020	Income	Expenditure	Transfer	2021
Chinese Congregation	252,710	93,004	63,926	(11,003)	270,785

The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the Chinese Congregation. Its main source of income is the giving of the Chinese Congregation both weekly and by special collections. A transfer of £11,000 was made to the General Fund for the use of the premises.

BS7.2 Other Restricted funds

Other Restricted funds
Fund Name	2021	Income	Expenditure	Transfer	2022
Benevolence fund	3,580	195	2,050		1,725
Small groups	1,166	2	0		1,168
Totals	4,746	197	2,050	0	2,893
Fund Name	2020	Income	Expenditure	Transfer	2021
Benevolence fund	6,109	125	2,654		3,580
Small groups	1,166	0	0		1,166
Totals	7,275	125	2,654	0	4,746

The Benevolence Fund is required by Methodist Standing Order 651 and is for the relief of poverty and distress.

The Church holds funds for small groups within the church's life where interest is earned for the funds from being invested in the Central Finance Board Deposit Fund.

All references to transfers are explained in section BS6.1 and BS6.2.

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Epsom Methodist Church

BS8 Endowment Funds

The Burden bequest and the Hudson bequest have both been closed.

Funds of Other Organisations in the Church

Internal Organisations	Opening balance	Income	Expenditure	Closing balance
Cricket Club	1,461	0	0	1,461
Families on Friday	456	0	0	456
Little Monkeys	993	178	60	1,111
Welcome Club	470	215	60	625
Table Talk	268	0	50	218
Totals	3,648	393	170	3,871

ON1 Capital commitments and contingent liabilities

At 31st August 2022 the Church had no capital commitments.

No contingent liabilities were identified at 31st August 2022.

ON2 Loans and creditors due after one year

No loans and creditors due after one year were identified at 31st August 2022.

( ON - Other Note)

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Epsom Methodist Church

ON1 Related party transactions

Name of related party	Relationship	Payments to related parties during the year 2021/22	Payments to related parties during the year 2020/21
		£	£
Action for Children	Connexion	115	70
Ministerial Housing Society	Connexion	750	750
Ministerial Training	Connexion	600	600
Fund for Support of Presbyters & Deacons	Connexion	300	300
Fund for Property	Connexion	1,350	1,350
Mission Alongside the Poor	Connexion	500	500
Epsom & Ewell Foodbank*	Charity	170	178
Christian Aid	Charity	165	91
British Heart Foundation	Charity	14	0
Total		3,964	3,839

All transactions were donations.

During the year there was no: Income from related parties Loans to or from related parties Amounts owed by or to related parties on 31st August 2021

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Epsom Methodist Church

Chinese Congregation Report

Income

During the year a large number of new members joined the church from Hong Kong. As a result the Sunday offering has increased from £63,015 to £89,746.

The Thanksgiving has almost doubled from £3,515 to £7,695.

The Mission Fund collection has nearly halved from £11,925 to £6,500.

There were no special collections to support Jerry in his theological study.

Interest from the Central Finance Board account decreased to £274 (2021 £1,075) due to the very low interest rates.

Gift Aid had been expected to fall but actually increased from £13,124 to £13,766. Further, £981 (2021 £1,110) was received as GASDS (Gift Aid Small Donations Scheme) from the English congregation because they had not used up their allowance.

Total income was up from £93,004 (27.7%) to £118,762.

Expenditure

There are 2 main items of expenditure. The first is the support for Rev Ung Soon Nguang, our minister who joined us six years ago. This year the support of £57,000 was contributed to maintain the Chinese Ministry Fund with a positive balance. This was a large increase of £21,500 over the previous year (£500). The connexional grant of £20,000 terminated last year so we had to pay for almost all of the ministry. The contribution was significant, being 57.75% of all expenditure (£37,500, 52.85%) in 2021).

£18,087 (17.45%) (£16,504 23.22%) was contributed for Jerry's theological study, this being the second year of a three year course.

£6,500 was accrued in the year and along with £11,925 is scheduled to be paid in 2022-23.

This is he first year that HSBC has started making a bank charge which amounted to £193.

Summary

Our income comes mainly from Sunday offerings, tax refunds and Thanksgiving. There were also collections for missionary funds and other special offerings.

The expenditure has been mainly on the following:

• Cost of ministry.

• Sponsorship of theological study.

• Contribution to EMC for our share for using the church facilities.

• Other main expenses include worship, pastoral care and Christian eduction.

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Appendix A

Epsom Methodist Church

The following are the current members of the Church Council (Managing Trustees):

Ministers

Rev Catherine Hutton, Rev Ung Soon Nguang, Mr Josh Selfe

Secretary

Peter Thompson

Treasurer

Richard Smith

Stewards Team

Mark Angel, Val Imms, Simon Jump, Katharine Castledine, Robert Hill, Kathryn Thompson (not trustee) Jane Rusis, Tom Rusis

Property Stewards

Sarah Meech

Pastoral Secretary

Pam Brogan

Chairman of Resources Committee

Catherine Hutton

Chinese Congregation

Mr Chee Hong Fui

Circuit Steward Representative

Vacant

Elected Representatives

Ann Arthur, Jane Barden, Liz Frost, Gillian Mead, John Riley

The following are the trustees who served during the year and are appointed by the Church Council as and when necessary.

Mr Mark Angel (appointed 05/07/2021) Mr Simon Jump Mrs Ann Arthur Miss Sharon Lam (resigned 23/02/2021) Mrs Jane Barden Mrs Gillian Mead Mr Tony Blakeburn (appointed 23/04/2022) Mr Andrew Meech appoiinted 23/04/2022) Mr Jim Bosley (resigned 12/10/2021) Rev Ung Soon Nguang Mrs Pam Brogan (appointed 22/02/2022) Mrs Jacqui Raggett (resigned 23/04/2022)) Mr Richard Chandra-Rajan (resigned 23/04/2022) Mr Steve Rebus (resigned 05/07/2021) Mrs Hannah de Bourcier (resigned 31/08/2021) Mr John Riley Mrs Liz Frost Mr Chris Shaw (resigned 31/05/2022) Mr Chee Hong Fui Mrs Meryl Smith (resigned 23/04/2022) Mrs Hilary Gudge (resigned 05/07/2021) Mr Richard Smith Mrs Lisa Halstead (resigned 23/04/2022)) Miss Carol Stringer (resigned 22/02/2022) Mr Robert Hill (appointed 23/04/2022) Mrs Kathryn Thompson (appointed 23/04/2022) Rev Catherine Hutton Mr Peter Thompson (appointed 23/04/2022) Mrs Val Imms Mrs Hilary Willson (resigned 05/07/2021) Mr Andrew Jennings (resigned 23/04/2022)

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Epsom Methodist Church

DECLARATIONS

Treasurer

I confirm that I have prepared the accounts from the records of the Church and that they include all funds under the control of the Church Council.

Signature of Treasurer Date 1st November 2022 Name Richard T Smith Address 13 Hazon Way, Epsom, Surrey, KT19 8HD Presentation to the Church Council Meeting for approval. I confirm that the Accounts were presented to the Church Council Meeting on 1st November 2022 Signature of the Chair of the meeting Name of the Chair of the meeting Rev Catherine Hutton Date 1st November 2022

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Epsom Methodist Church

Independent Examiner’s Report to the Trustees of Epsom Methodist Church

I report to the charity trustees on my examination of the accounts of the Epsom Methodist Church (the Church) for the year ended 31 August 2022.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

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

Independent Examiner’s Statement

The church’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the Church as required by section 130 of the Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Report) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

4. the accounts have not been prepared in accordance with the methods and principles 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 the Republic of Ireland (FRS 102)

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

Name Paul Newton FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Signature

Date

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