## **Fareham Methodist Church** **TRUSTEES’ ANNUAL REPORT for the year ended 31 AUGUST 2023** Fareham Methodist Church Year ended 31 August 2023 ## 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 2022 with the news that a long hire by the Trinity Pre-School would cease as the Pre-School was closed by its Trustees due to its non-viability. Although this outcome was expected it had a major effect on letting income during the financial year 2022-2023. It has not been possible to find an equivalent replacement hire resulting in income from lettings being £5,600 lower than the previous year. Attendance at Sunday services normalised at an average of approximately 65 per week. The majority of regular church attendees now donate by standing order which has meant that income from giving is now more predictable. Church services are normally streamed onto Facebook enabling a number of people who were unable to get back to church to enjoy feeling part of the service through the live stream. Various weekday activities continue to take place in the life of the church with many offering outreach opportunities to the local community. Faced with increasing energy costs the Managing Trustees approved the installation of a heating management system. The system was installed in May 2023 so there has been no data available during this financial year to demonstrate its effectiveness. Benefits have been seen, however, in the management of hall hire and control of use of the various rooms. It has become apparent that the current audio system is not fit for purpose and is starting to fail. A grant of £5,000 towards a new system was made by the Circuit. The property group has identified two potential suppliers and there is an anticipation that the installation of a new system will take place early in the next financial year. The Church continues to make donations to other charities and through social events raise money for various appeals. 2 ## Fareham Methodist Church Year ended 31 August 2023 ## 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 - 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 £102,387 (2021-22: £85,757) and made payments of £88,267 (2021-22: £82,498). A grant of £5,000 was received from Circuit to support the new AV system to be installed in 2023-2024. Bequests were received in the year totalling £9,700 and these are held in the church accounts. Funds held at TMCP in Trust Number 21694 stands at £8,807. Total restricted reserves held in endowment funds at TMCP amount to £15,965. The interest from these funds is paid into the General Fund as it is received. Unrestricted reserves carried forward were £105,939 (2021-22: £91,089). £65,031 of these reserves are designated: £500 for benevolence payments; £8,024 in the Organ and Keyboard Fund; £31,000 in the Major Property Repair Fund; £11,700 bequests held within church accounts, £5000 grant from Circuit(restricted to AV equipment) and £8,807 as bequests held at TMCP for longer term or specific use. 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 proportion of income that is from lettings has reduced from previous years and the Trustees are aware that this income cannot be relied on as fully secure, especially as the cost of living crisis potentially affects user groups. However the Trustees are confident that there are sufficient reserves to cover any continued reduction in lettings in the medium term. ## Remuneration policy The church currently has one employee, a cleaner working 11 hours per week. The cleaner post is paid at the Real Living Wage set annually by the Living Wage Foundation. Pay reviews are normally undertaken with effect from 1[st] April each year with rates set by the Managing Trustees at the Church Council prior to this date. In 2022-2023 the pay review date was brought forward to November 2022 to reflect the challenges of the cost-of-living crises. It is expected to revert to the usual pay review date in future years. ## 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. 3 Fareham Methodist Church Year ended 31 August 2023 ## 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 and in the church accounts. - 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. - 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. - The major property reserve was re-assessed in October 2021 and a target property reserve has been set at £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 £20,000. The Quinquennial did not indicate any short-term major spend requirements. An energy management system was installed during 2022-2023 and there is a plan to significantly upgrade the AV system during 2023-2024. - Bequests were received in 2022-2023 totalling £9,700 and these are currently held in the Church Accounts. 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|£ 8,024| |Major Property Repair (target £40k)|£31,000| |Unrestricted bequests@ TMCP|£ 8,807| |Unrestricted bequests held in accounts|£ 11,700| |Grants from circuit not yet expended (restricted for AV equipment) £ 5,000|| |Free Reserve:|£40,908 - 50% operating| ||costs [forecast operating| ||costs 2023/24 = £81,650]| ## 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 4 Fareham Methodist Church Year ended 31 August 2023 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. 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 Tavistock Place, London WC1H 9SF to provide guidance on changes that could affect the Church. 5 Fareham Methodist Church Year ended 31 August 2023 ## Reference and Administrative Details ## **Name of the charity** Fareham Methodist Church. ## **Charity registration number** 1127814, registered in England and Wales ## **Principal Office** Fareham Methodist Church Kings Road Fareham PO16 0NU ## **Minister with pastoral oversight** Revd Pauline Crispin ## **Church Treasurer** Mr Michael Petter ## **Names of trustees** The following served as trustees throughout part or all of the year 2022-23 or were trustees at the time of this report being approved: |
Mrs|
Brenda|
Bennett|| |---|---|---|---| |Mrs|Sally|Bland|| |Mr|Mark|Brooks|| |Mr|Nigel|Cox|| |Revd|Pauline|Crispin|From Sept 2023| |Mrs|Patricia|Croker|| |Mrs|Linda|Foster|| |Mr|Kevin|Foster|| |Mrs|Jill|Groom|| |Mrs|Shirley|Henderson|| |Mrs|Julie|Kettle|| |Mrs|Edith|Livingstone|| |Mrs|Audrey|Mann|| |Mr|Peter|Moody|| |Mrs|Jean|Petter|| |Mr|Michael|Petter|| |Mrs|Jill|Race|| |Mrs|Margaret|Shepherd|| |Mr|Michael|Shepherd|| |Revd.|Claire|Simpson|Left Aug 2023| |Mrs|Catherine|Stevenson|| |Mrs|Roberta|Watson|| |Mrs|Margaret|Wheeler|| 6 Fareham Methodist Church Year ended 31 August 2023 |Mr|Andrew|Wilcock|| |---|---|---|---| |Mrs|Elizabeth|Wilcock|| |Mr|Christopher|Woodhams|| |Mrs|Lin|Woodhams|| |Mrs|Linda|Young|| No trustee claims exemption from disclosure of his or her name here. ## **Bankers** CAF Bank Ltd Central Finance Board of the Methodist Church 25 Kings Hill Avenue 9 Bonhill Street Kings Hill London West Malling EC2A 4PE Kent ME19 4JQ ## **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 18[th] January 2024. 7 CHURCH RECEIPTS AND PAYMENTS ACCOUNTS THE METHODIST CHURCH STANDARD FORM OF ACCOUNTS Fareham Methodl$t Church FOR THE YEAR ENDED 31 August 2023 East Solent & Downs Clrcult Clrcult no. 26107 Registered Charlty - Charlty Reglstratlon number 1127814 If not a registered charity Her Majestys Revenue and Customs Gift Aid number (The HMRC number is equivalent to a registered charity number in terms of evidence of charitable status and may be used to give to donors or grant funders wishing to See evidence of the organisation's charitable status. Melhodisl charities in England and Wales that are not registered charities are excepted from registration under Statutory Instrument 2014 No.242) Minister: Rovd. Pauline Crispin Church Stewards.. Mrs Maggle Wheeler Mrs Jlll Groom Mrs Brenda Bennett Mr Mlke Shepherd Illr Chrt6 Woodhams Mrs Jean Petter Mrs Audrey Mann TreasU￿r.. Mik• Pett•r SFA 2022-2023 ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 Fareham Methodist Chur¢h Ro8trlcted Fund• Incl Unr••trl¢tad Trust No Totals thF* Funds 21654 yeor Totals la•t ear 8ECTION A a1 RECEIPTS a2 Offerin $ and Tax recove Bank and CFB interest and Investment incf)me 59.619 59,619 57,806 a3 2,308 13,564 26,891 102,383 2,308 13,564 26,895 102.387 236 Lettin a5 Other receipts TOTAL RECEIPTS 8,568 85,757 117) SECTION B b1 PAYMENTS b2 Circuit Assessment or Sha 46,815 3,019 46.815 3.019 47,306 10,805 2,361 b3 Donations Re airs and Mainlenan¢e Ub'lilies Ilnsurances, water char es, heatin hlingl 12,316 b5 11,808 9,457 4,852 88,267 9,052 10,155 2,819 82fv98 Caretakin & Cleanin 9857 4,852 88,267 b7 Other payments TOTAL PAYMENTS b8 {b91 SECTION C NEf RECEIPTSIPAYMENTS FOR THE YEAR c1 a64 14,116 14,120 3,259 Total fvnds brought forward from Lgst year c2 83,016 8,803 91,819 87,830 Sub total ¢1+c2 97,132 8.807 105.939 91,089 Transfers and ad'ustments c7 730 ¢5 TOTAL FUNDS AT END OF YEAR (c3+¢4) 97,136 8.807 105,943 Ic8) 91,819 Ic61 SECTION D FOR INFORMATION ONLY: MONEY RECEIVED AND PASSED ON TO EXTERNAL ORGANISATIONS {Ihese amounts are nol to be Included In total r8¢•iptslpa ments fi d1 Balance brou ht fowdrd from last d2 Offerin sIGWts- received for exiemal o anisations 2,436 1,967 d3 OfferingslGifts - passed to extemal organisation$ 2,436 1,967 d4 BALANCE STILL TO BE PAID (d1+d243} SFA 2022-2023 Fareham Melhodisl etwrch CH 8ECTIQN E Summaryoftho Chureh 2ceauntr 31 M¥uit 2023*￿ ktsmal f￿nIS•ti￿¥ rep¢i)n9 toth• Churth CtyJ￿VChUr¢h M¥bty. Not¢ Mthefvrtd¥of an Intemal 0r9an4satsc￿ *TAl￿ tÉ Restr%a funds tedewty thaitfv ctyJbJ Le used forany Mettrth151 purrrtw This t ANDA DIFFEREFIT FORPI bo Iiw f40880 refer¥)bh •Mdanm notss ryrth'rK4 tr￿llerS betthw Ihe f*'tstrK* ttfflneGted Disthd 0rwlsat￿f INTERNNL ORGANISATKINS OFWIryJ Cthn P￿?￿ FuTrJ 70 249 1.415 Jun*rChur¢h 18 Mlnl ma￿•t 1857 1.194 ej Parwrt & 7oddlllTr 372 420 201 ¢7 ub nwtionsfunds 4.ry15 011 639 •12 Church accoun1• It￿ 2- tota￿ eolumn 102J87 14120 ICT) 91,819 Ic6 105,943 BY CMURCH lo1￿25 1&144 106.682 rt[￿resSary and bmg TOTAL RE¢EIPTS TOTAL SE¢rnON F CLQS eHURCH-CA8H FUNDS HELD •t31 t 202J Catsh in hand Bank Current￿rn B•nk Centr* FInaT￿ 8oard 52.188 Trustees meth&y￿1C￿U￿ P 8.807 Otherfund5 SLB TOTAL.Ch¥r¢h O￿O￿ni1 Totsifunos by Intem81 organ￿alk￿lS bal4nce wtal frorn aOov¢l18121 1.615 839 912 TOTALCA$H FUNDS MELD ey CHURCH 93.434 Ix) 108,682 SEenoN O At 31 Augu812￿3 OTHER ￿SET$ ar￿ Lart & 8ui 3 242 246 3339511 L(*n Other f4 IWUOO Fu￿9 althe Central F￿•1￿* f5 Fu￿8 atTl￿tee5 ts Va￿LS1 Puw 91 kndude any¢￿￿¥¢¥bmts lTh*the c¥th8lwwtc4TMCPtrL* trA• ty ￿15 FAREHAM METHODIST CHURCH Note5 Au 202 Both the General Fund and Trust No. 21694 are unrestriL#ed. Trust No. 21694 conwsls of ￿l￿Se1 Tnjst tequ88ts. Oth?r Recolpts and Other pa￿entS Recei Weekday xbvity 6,535 Mini market.. £2609 Messy Churth.. £123 Hdiday at Home.. £127 Shiws Stall.. £6ts) Coffee Centre.. £545 Friday lunch.. £710 Fashion ¥hw. £759 Film night.. £245 Bazaar. £775 Organ & Keyboard lund clwtions Sunday lunch donati¢)n$ Sunday coffee donations Bequests(Long. Bright. w￿￿￿er, 88shforthl Grants from urcLtit Hampshire Historic Churd Atyum SLFPPJrt Cther Claire Gift d￿ation Claire party lkntior 830 792 215 9,700 6.094 215 567 208 1,620 26,891 Me$$y chU￿h Copying. Copyr4ht & Web86te 8ank fees Benevolance pa￿nents Claire gift Claire paty Other ind expenses 343 1,709 78 295 1,620 470 337 4,852 Donatlon8 Advance payment Gift Worfd Missions Mission in 8rit8ln ProFety Fund Ministers, Houwng Swety Fund tor the SupF#Yt of preSb￿e1S and Oeacon$ Leaders of Worship and PreaGhers' Trust MWIB Christian$ Tcgether in Fareham Fareham Masoni¢ Club {for use of car parkl 208 900 550 450 220 85 250 50 120 3,018 Repairs Boiler seryice Fire extinguishers Fire alami seNce General electn.cal Decorate Larg• Hall Computer upJrade Defib pads New heater conlrol system General expense$ <£110 177 100 321 142 1.158 9,874 109 .31 FAREHAM MEfHODIST CHURCH Notes accompanying Accounts for Year ended 31st August 2023 continued Utilities Broadband Ga5 Ele¢Wcw (now on quartety p8ymei BT Insuran 298 796 6.914 65 3.733 11.807 Caretaking and cleaning Wages Janitorial Supplies PHS 7.759 534 785 220 159 Window ¢lean Trade Waste General Fund at 31st August 2023 Restricted grant from ¢ircuit Running Costs Reserve Benevolence Reserve Major Repairs ReseNe Organ & Keyboard ￿$¢The Unrestricted Wuests @ TMCP Unrestricted b4uests in attount 5C(I 310CKJ 8807 11700 105939 Appeals for Extemal Organisations A¢tion for Chiklren Iwecan Ukraine Christians Christian Aid Week Children in Need Step by Step World Mission Fund JMA 461.25 691.10 563.00 205.15 241. 247.50 26.87 2435.87 The investment shtxwn in Section G is T￿￿t No. 17W and Tnjst No. 22184 wilh the Tru5tee5 for Methc*Jist Church Purposes {Charity No. 1136358}. 10. The Buildings and "other assets" (contents and organ) are valued at the sums for which they are insured. The sums insured are increased annually according to appropriate indices. Independent EXamine￿S Report to the Trustses of the Far6ham Methodist Church Charity Number 1127814 Responslbllltles and basls of report I report to the trustees on my examination of the accounts of the Fareham Methodist Church for the year ended 31 August 2023 set out on pages 1 to 3. As the Church's trustees. you are responsible for th8 preparalion of the aC￿UnIS in a¢¢ordan¢e wilh trte requirements of the Charities Act 2011 Cthe Act,). I report in respect of my examination of the Chur¢h's accounts carried out under section 145 of the Act and, in earrying out my •Mamin2tion, I havé followed 211 tha 2ppIic2blA Diréetiong oivén by thé Charity Commi22ion under section 145(5)(b) of the Act. Indepandont Examinovs Statomont I have completed my examination. I confimi that no malerial matters have Come to my attention in connection wth the examination {other than that disdosed b8lovf) which give me ￿use to believe that in. any material respect.. the a¢countinq records were not kept in accordance with ¥e¢tFon 130 of the Act.. or the accounts do not accord with the accountinq re￿rds. I have no concems and have come across no other matters in connection with the examination to which attention should be drawn in thi8 report in order to enable a proper understanding of the accounts to be reached. I have obtained independent verification of all inveslments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of thè Methodist Church vthich are indivKlually in eX￿sS of £10,000 (ten thousand pounds) at the balance sheet date. Signature of ind8P8ndent examiner Name of independent examiner Rèlevant professional qualification of independent examiner Name of fimi {Vh￿re appropriate) Address Fa [0 ..IA• Post Code .. Date SFA 2022-2023 5of5 Charlty Number 1127814 Declaratlon by Treasurer I confimi that these Receipt and Payment based accounts for the year to 31 August 2023 have been prepared from the records of the Church and that they include all funds under the control of the Church trustees. Signature of treaSu￿r ............ Date..7.. tL 2.IS Name and address of treasurer Mike Petter 4 Romyns Court Fareham P014 1NB Presentstlon to the Church trustees I confimi that the annual report and accounts for the year ended 31 August 2023 were presented to the meeting of the Church tNstees held on ..l*..S4. *1.w￿.?> Signature of the Chair of the meeting Date jÉ.