## **Fareham Methodist Church** **TRUSTEES’ ANNUAL REPORT for the year ended 31 AUGUST 2021** Fareham Methodist Church Year ended 31 August 2021 ## Objectives and activities In setting our objectives and planning our activities, the Church Council Meeting has given careful consideration to the Charity Commissioners’ general guidance on public benefit and, in particular, to its supplementary public benefit guidance on advancing our objectives and conforms to the Charities Act 2011. Our Mission as a local church of the East Solent and Downs Circuit is to pursue the mission of God through worship, learning and caring, service and evangelism. This is done for as many people as possible within the Fareham area through the provision of Christian Worship, spiritual development and pastoral care both to church members and to the wider communities in which the church is located. Fareham Methodist Church supports the advancement of the Christian Faith through ecumenical liaison with other Christian groups in Fareham. ## Achievements and performance ## Current year The year started in September 2020 with restricted numbers allowed in church for services. The stewards instigated a booking system with many church members continuing to partake online through Zoom. Hybrid services combining online with physically in the church building have continued and will continue into the future. Weekly services are recorded and access is provided to these. DVD copies were provided to people unable to access online. Various user groups have come back to using the building. The Trinity pre-school has kept going although numbers have been reduced. Slimming World and Yoga restarted using the building but some groups were unable to continue. This has meant that lettings income has been significantly reduced on previous years. Thankfully the government’s job retention scheme has provided support so that the two employees could continue in their roles. Careful management of the premises has ensured that there has been no deterioration to the fabric of the building through the period of reduced use. At the start of the year procedures were put in place to provide one-way systems and social distancing. Even though some of these restrictions have eased the church retained a number of the measures as best practice. Although income has been significantly reduced the church has continued to be able to make donations to various other charities and appeals. ## Future years - To continue to focus on mission activity that will lead new people into faith and so grow the number of Christians. - To focus on worship and spiritual development and continue the use of technology to stream services to people who cannot access the premises 2 Fareham Methodist Church Year ended 31 August 2021 - To continue to work with Christians Together in Fareham to promote Christianity in the Borough. - To provide pastoral support to those in need. ## Financial review ## Income and expense During the year the Church received total income of £70,279 (2019-20: £88,113) and made payments of £71,861 (2019-20: 87,855). No bequests were received and £1,400 was drawn down to cover the costs of a new computer, camera and microphones. Funds held at TMCP in Trust Number 21694 stands at £8,808. Total restricted reserves held in endowment funds at TMCP amount to £15,967. The interest from these funds is paid into the General Fund as it is received. Unrestricted reserves carried forward were £87,830 (2019-20: £89,332). £48,342 of these reserves are designated: £500 for benevolence payments; £6,034 in the Organ and Keyboard Fund; £25,000 in the Major Property Repair Fund; £8,000 set aside for contribution to the Methodist Church Pension Reserve Fund; £8,808 as bequests held at TMCP for longer term or specific use. (Nb. In the first meeting of Trustees after the end of the year it was agreed to reduce the Major Property Repair Fund and set these monies aside as a donation to the Methodist Church Pension Reserve Fund – this is reflected in the reserves described above.) The trustees of the Church have every reason to believe that the Charity is a going concern, principally because the majority of the donated income is not reliant on attendance within the church building but is paid directly to the church accounts by standing order. There are no subsidiary undertakings. The restriction in use of the church building occasioned by Covid19 restrictions has significantly reduced the income from lettings. The Trustees anticipate that this reduction will reverse to some extent in 2021-2022 but perhaps not return to preCovid levels until the following year. The Trustees are confident that there are sufficient reserves to cover this situation. ## Remuneration policy The church currently has two employees, a caretaker working 6 hours per week and a cleaner working 11 hours per week. The cleaner post is paid at the Real Living Wage set annually by the Living Wage Foundation. The caretaker post is paid at a rate above this base level. Pay reviews are undertaken with effect from 1[st] April each year with rates set by the Managing Trustees at the Church Council prior to this date. ## Investment Policy and Performance To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for Methodist Church Purposes (TMCP). Short term deposits are lodged directly with the Central Finance Board (CFB) and attract interest. The Trustees are not minded to invest in higher risk funds. ## Reserves level and policy The General Fund contains three designated funds, the Benevolence Fund, a fund for Organ and Musical Instruments and a fund for Major Property Repair. It also contains unrestricted bequests held in Trust number 21694 at TMCP. 3 Fareham Methodist Church Year ended 31 August 2021 - v Since in accordance with its stewardship policy, the church does not take separate collections for benevolence, a benevolence reserve is maintained in the General Fund for disbursement at the discretion of the minister. - v Church Council agreed that the church should start to build up a reserve to go towards replacement of the organ and other major musical instruments in the future. The designation of this fund is Organ and Keyboard with an ultimate target fund of £20,000. - v The major property reserve was re-assessed in October 2021 and reduced. This enabled £8,000 to be released for a donation to the Pension Reserve Fund of the Connexion. The target property reserve has been reduced to £40,000 to cover major repair, renewals and improvements not included in the operating costs of the Church. This is designated CAPEX within the budget set each year. There is budgeted expenditure in the next 12 months of £0. The Quinquennial did not indicate any shortterm major spend requirements. Two new heaters were fitted in the church. It is anticipated that the remaining 4 will need replacement over the next few years at a cost of approximately £8000. - v No bequests were received in 2020-2021. Withdrawal of money from the three Designated Funds and unrestricted bequests requires Manging Trustee approval. The remainder of the funds are held as Free Reserves. The target is for free reserves to cover approximately 6 months of operating costs with a target range of 40%-60% |Designated Funds:|| |---|---| |Benevolence|£ 500| |Organ and Keyboard|£ 6,034| |Major Property Repair (target £40k)|£25,000| |Unrestricted bequests|£ 8,808| |Money set aside for donation to PRF|£ 8,000| |Free Reserve:|£39,488 - 51% operating| |costs [forecast operating costs 2021/22 = £76,999]|| ## Trustees’ responsibilities For each financial year ending on 31[st] August the Trustees are required to prepare financial statements that give a true and fair view of the Church’s financial activities during the year and of its financial position at the end of the year. In preparing these financial statements, the Trustees must: - select suitable accounting policies and apply them consistently using the accruals method - make judgements and estimates that are reasonable and prudent - follow applicable accounting standards - prepare accounts to comply with the Charities SORP The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Church and enables them to ensure that the financial statements comply with the law. They are also responsible for safeguarding the assets of the Church and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. 4 Fareham Methodist Church Year ended 31 August 2021 Safeguarding children and vulnerable adults. The Church’s policy is to adhere to the Methodist Church’s policy on Safeguarding Children and Vulnerable Adults. A Safeguarding Officer is appointed. The Circuit provides regular safeguarding training that can be accessed by the church as required. The Safeguarding Officer keeps records of training and ensures that this is up to date. The Church does not hold any funds as custodian trustees on behalf of others. ## Structure, governance and management The Church is an unincorporated association and is governed by the Methodist Church Act 1976, the Deed of Union and the Model Trust Deeds of the Methodist Church and was registered with the Charity Commissioners on 2 February 2009. Prior to this the charity had an excepted registration. ## Structure The Church is one of a number that make up the East Solent and Downs Circuit. The Circuit is the coordinating charity and pay the stipends of the ministers and employ lay staff to serve the Churches in the Circuit; most decisions are made at or ratified by the Circuit Meeting. The Circuit is part of the Southampton District which is the coordinating charity for a group of contiguous Circuits. District decisions are made at the half yearly synod to which the Circuit appoints both lay and ordained representatives. The Methodist Conference meets once each year as the supreme denominational body for all Methodist Churches. 1. Overall regulatory authority rests with the Methodist Conference. 2. The Connexional Office implements decisions made by Conference and is also responsible for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits. 3. Connexional decisions are passed via Districts to Circuits for local implementation by the Superintendent Minister, ministerial staff and Circuit Stewards, and authority is delegated to the Circuit Meeting for certain matters. 4. The Circuit Meeting passes regulatory control down to Church Councils for local implementation by the presbyter, the Church Stewards, and other officers, and this regulatory authority is then exercised by Church Councils as Managing Trustees of their charity. ## Governance The Church operates within a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office at 25 Marylebone Road, London NW1 5JR to provide guidance on changes that could affect the Church. ## Reference and Administrative Details ## **Name of the charity** Fareham Methodist Church. ## **Charity registration number** 1127814, registered in England and Wales 5 Fareham Methodist Church Year ended 31 August 2021 ## **Principal Office** Fareham Methodist Church Kings Road Fareham PO16 0NU ## **Minister with pastoral oversight** Revd Claire Simpson ## **Church Treasurer** Mr Michael Petter ## **Names of trustees** The following served as trustees throughout part or all of the year 2020-21 or were trustees at the time of this report being approved: |Mrs|Brenda|Bennett|| |---|---|---|---| |Mrs|Sally|Bland|| |Mr|Mark|Brooks|| |Mr|Nigel|Cox|| |Mrs|Patricia|Croker|| |Mrs|Linda|Foster|| |Mr|Kevin|Foster|| |Mrs|Jill|Groom|| |Mrs|Shirley|Henderson|| |Mr|Antony|Hollinghurst|Deceased 29thOctober 2021| |Mr|Anthony|Jackson|| |Mrs|Edith|Livingstone|| |Mr|Peter|Moody|| |Mrs|Jean|Petter|| |Mr|Michael|Petter|| |Mrs|Jillian|Race|| |Mrs|Margaret|Shepherd|| |Mr|Michael|Shepherd|| |Revd.|Claire|Simpson|| |Mrs|Catherine|Stevenson|| |Mrs|Roberta|Watson|| |Mrs|Margaret|Wheeler|| |Mr|Andrew|Wilcock|| |Mrs|Elizabeth|Wilcock|| |Mr|Christopher|Woodhams|Appointed 1stMay 2021| |Mrs|Linda|Young|| No trustee claims exemption from disclosure of his or her name here. 6 Fareham Methodist Church Year ended 31 August 2021 ## **Bankers** CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE ## **Investment managers and custodian trustees** Trustees for Methodist Church Purposes Central Buildings Oldham Street Manchester M1 1JQ ## **Independent Examiner** Mrs Joanne Gregory 19/21 High Street Emsworth Hants PO10 7AQ ## **Approvals** The Trustees’ Report and the Financial Statements were approved by the Church Council Meeting on 20[th] January 2022. 7 CHURCH RECEIPTS AND PAYMENTS AGGOUNTS THE METHODIST CHURCH STANDARD FORM OF ACCOUNTS Church FOR THE YEAR ENDED 31 August 2021 E••t 3ol•nt & Dty*n• Clrcutt Circuft no 2PJ07 1127814 If not a rggisternd rtslty Hor R•v•nu• •rKI Customg Glft Ald number (The HMRC nwnber 1$ eqimlert to a register*1 ch*lty number In tm of evidence of tharitable 8tatUS and may be used to give to Ojnors or gfant fijndern to see evidence of the organisats'on L*aritable status. Meth&thst charities On EnglarMJ and Wale8 that a￿ rK)t rewtered charities arfr •xwtwJ frtyn r•gi8tratm Stalutlxy Instru￿ 2014 No.242) Min￿. Revd cialre Skn Chwch Stthvwd$. Mr8 Al (>cKxn Mrs Br￿￿• Benr•tt Mike Shphwd Mr Mlk• Pott•r Accoupifs FOR THE YEAR ENDED 31 AIIGU8T 2021 Faroham Methodlst Chwch Totsh knt SECTION A a1 RECEIPTS nol Tax r¥cuvrnl Bank and CFB interest 8rn1 In¥osttrtht wKome 113 113 507 11589 1.548 70379 12.580 18,421 9,949 14113 TOTfvL RECEPT3 70379 gEeTION B b1 PAYMENT8 b2 Cffcurt Assessff￿ or Shar• 47.328 47 28 50.430 b3 Donationi Ro s and P*1alnt•n•ncg utrut*s Ilnsurances. watsr cha 1722 073 10 10.788 Caretaki & c￿an 6152 b7 Other Foyments TOTAL PAYMENTS 1384 71061 3,154 87.865 71￿1 SECTION C NET RECEIPTSIPAYIIENTS FOR THE YEAR c1 258 l•¥t year 79.125 10.207 Syb trrt•l +¢2 10.207 87.780 1.479 1.399 c7 TOTAL FUNDS AT END OF YEAR (¢3rf4) 87WO 89.332 8ECTION D FOR INFORPAATION ONLY: IAONEY RECEIVED *JID PASSED 014 TO EXT&IIIAL OftGAN￿TK>N8 th•6• amounts •r• nol to b• in t&tsl d1 d3 BALANCE STLL TO BE PIJD d1+d24LI IDIJJ 2rf5 N¢&kWthg fvnd& 1¥4 11Z e7 410 10A32 173 TOTAL 10.207 8.8C¢ 10.ln Declaratlons and Scrutiny I confinn that these R8celpt ond Pawnent b88ed aCc¥￿nIS for the year to 31 August 2021 have been prepared from the rec4xds of Ihe Church arml that Ilwy all funds the ￿rtro1 of ChuT Signaknreoftsgurer.............. . Name and addre88 0ftre￿rer................................... ...... ...... .................................. M*e Pelter 4 R￿n￿r& Cwt Far￿￿ P014 1NB Pre8entallon to thg ChurGh tr￿te0• I confimi that the annual report and accounts for the ￿ar erKbJ 31 August 21r21 presented to the meelirKJ of the Chur(* trust￿ held on .2&-V-(5th￿•QY L2 Slgn#turn of Iho Chalr of th• m•oUng ........................ ........ Name of lh• Chair of ￿ meetir¥J ... . . Date U-e•l-ZtsL7- Independent ExamlneV8 Rel￿ to the Trustees of the Farnham PAethodlst Church Charlty Numb•r 1127814 Rospon¥ibilill•• and l)a•l• of r•port I report to the trustees on rny examlnatlon of the accwnts of the Farehun MethorfBt Church for the ypar ended 31 August 2021 set (xrt w pagos 1 trj 3 the Churth's trustees, you are r8sponslble for the prepara￿n of the accounts in accordarK• the requirwr*nts of the charit%￿ Act 2011 ('the Name of Chur[* Fareham Meththlist No 1127814 I hav• c(ry￿•d my examination. I confwm that no material mattefs havè corne to my attention ITr connection wrlh the examlnatkn (other than thal d￿Ck)￿ belrf vthich we me ca4M lo belwe that In, any materkql 188pe( I have no conc8m$ and have come across no other matters in connection with the examlnatlon to whlch reached. I havelhave nor oblalned indewdenl verfficallon of all InVest￿entS wllh the Trustees for Methodtst Church Purposes or held in other trusts, bank balances and funds at the Cèntrnl Finance Board of the Methodist Church are IndNkluaWy in excvu 01 £10,IXQ (ten th(xffjarKI pound8) al the balance sl*et date. S￿natu￿ rf IndeperKknl eyamhief NAmo of independont examiner ... ... . R•lMnt pr￿%￿al qualrfK*tson ofiTh**ndent exam1￿ ............................................. Nam• gffffm (where approprfatel ................................................................................. ' delet• or circle as apprwte 201SdMYth R•MI PAI 5011