2021-08-31-accounts - Brunswick Methodist Church

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THE METHODIST CHURCH THE Newcastle Upon Tyne DISTRICT THE NEWCASTLE CENTRAL and EAST CIRCUIT 20/1.

BRUNSWICK METHODIST CHURCH

Trustees report and financial statements

For the year ended 31[st] August, 2021

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

The Trustees are pleased to present their annual report together with the financial statements of the charity for the year ended 31 August 2021.

The financial statements comply with the Charities Act 2011, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Brunswick Methodist Church.

Over the past year Brunswick Methodist Church has reached 200 years since the first act of worship took place in our building. This anniversary was marked in February 2021. Although a number of our anniversary events had to be shelved due to the pandemic we have planned to hold events in December 2021 to which representatives of our civic, business, and voluntary sector will be invited.

Following the huge challenges posed by the pandemic Brunswick Methodist Church has been very successful over the past 12 months in providing once again a safe, and welcoming space for use by church members and community users alike.

This is measured by the high rate of occupancy of the rooms in our church building each week which now includes a far greater usage of our sanctuary or worship space than before the pandemic. The use of the building by three church congregations has continued, although one of these, the Newcastle City Temple Salvation Army corp. is due to move from our building in a few months’ time. Although our relationship with the ‘Army’ will continue, their departure will mean the loss of an important income stream for our church of around £5,000 per annum.

Whilst all our worship services are now, again, being held face‐to‐face the importance of connecting with people online has not diminished and Brunswick Methodist Church continues to have a very active presence in terms of our Facebook page and our online, live midweek prayers, held on three mornings each week.

Activities for Achieving Objectives

Profile of our community:

69 church members; 30‐40 regular worshippers; 10‐15 regular Facebook prayer participants; estimated annual footfall of community users utilising our church building = 60‐70,000 people.

Age breakdown: 85% over 60s; 25% 20‐60; 5‐10 students/young adults; 5 families actively involved; 10‐15 new people since we ran worship and prayers online.

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

Overview of Lay Leadership: Lay Worker for Worship & Discipleship (20 hrs, paid 50% District, 50% Brunswick; to November 2024), Lay Worker for Outreach (15 hrs, paid by Circuit; to April 2025); 3 Church Stewards; Church Leadership Team‐ 8 members;

Centre staffing: Centre Manager (30 hrs), 3 caretakers (1 full‐time, 2 part‐time, total 71.5 hrs); we constantly review staffing levels and the affordability of this going forward.

Ministry Team = Presbyter (0.5), Two employed Lay Workers (details above)

Finances/Resourcing of our Ministry & Mission:

Brunswick is little different to many churches in that we have run a significant deficit during the pandemic. At a recent Connexional meeting I attended the Connexional Treasurer, Rev’d Tim Swindell, acknowledged the difficult times we are all going through and stated that the church he is treasurer of, Westminster Central Hall, is hoping that next year they will be able to break even, following two years with significant deficits, and it is our hope that Brunswick will be in a similar position.

In the year covered in this report our church secretary, Carolyn Walker, retired. She had maintained the account ledgers on X‐cell; we pay our grateful thanks for her sterling work. We took the opportunity to look at possible computer accounting systems and we chose ‘Xero’ which keeps records on‐line and in the cloud, this has proved to be easy to use and flexible for our requirements.

We wish to pay especial thanks to Fiona Wells for her eternal optimism, enthusiasm and the way she works tirelessly. Also to Iain Farquhar who has, for several years, been a member of the finance committee. He has been an encourager and wise counsel to the committee and Church Council; we shall miss him following his recent resignation.

We have produced the usual pie charts and these are to be found at the end of this report. The figures to highlight are:

Income.

Deficit for 2020/21 £2,036 (19/20 excess income £21,373). Budgeted deficit 21/22 £26,073.
The deficit would have been significantly greater but for the Government furlough grant £19,667 (19/20 £8,170) and the Local Authority Covid recovery grant £12,388 (19/20 NIL) ‐ total of these grants = £32,055.
Freewill giving £33,472 (19/20 £37,282), so down £3,810, this was due to several reasons for example deaths, transfers out to other churches and no Sunday ‘loose’ collections being taken up.
HMRC gift aid recovery £7,934 (19/20 £8,286).
Rents remain stable and a new lease with Fenwick has been negotiated.

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

Room hires £39,376, down from £78,093 in 19/20.

Expenditure.

Assessments have been paid: 19/20 £69,000, 20/21 £61,000 and 21/22 £58,000 in next year 22/23 they shall be £46,000 – Brunswick is now no longer able to subsidise and carry the Circuit disproportionately, the assessments have become too great a burden.
Salaries (including on‐costs and pensions) £81,056 up from £70,881 in 2019/20.
Pensions – the church has recently undertaken its statutory duty of confirming to all staff of the provision of a pension arrangement and the Church Council agreed to give £4,000 to the Connexional Pension Reserve Fund.
Property – Fiona Wells monitors the utility expenses and we use an energy broker to negotiate ‘best deals’. There have been several items of maintenance undertaken whilst we have been in lockdown.

Brunswick has limited reserves (see chart below) and those that are unrestricted are earmarked for known repair liabilities (for example the boilers are over thirty years old and the stained glass windows require on‐going maintenance – please see detailed schedule in the final chart, below).

Coffee Shop: the church has had to pay some of the bills for the coffee shop (e.g. insurance and accounts audit), the loans will be repaid in 2022 and it is estimated that a contribution of around £5,000 or £6,000 will be made to the church the 2021/22 Connexional year (against past contributions of circa £28,000). A big thank you to the teams, now operating four days a week, for re‐opening. The coffee shop provides a much needed safe space for people and fellowship for many.

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

2020 – 2021

INCOME £204,629, SHORTFALL (deficit) £2,036.

----- Start of picture text -----
HMRC Furlough
Other, £2,471
grant, £19,667
Covid recover
grant, £12,388
Collections,
VAT listed building £33,472
refund, £984
HMRC gift aid,
District Grant,
£7,934
£6,000
Interest, £2,337
Rents, £80,000
Room hires,
£39,376
----- End of picture text -----

EXPENDITURE £206,665

----- Start of picture text -----
Building Other, £12,195
maintenance,
£5,393
Gifts out, £2,645
Contract & Assessments,
cleaning £61,000
materials,
£20,643
Utilities &
insurance,
£23,733 Salaries, £81,056
----- End of picture text -----

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

FUNDS HELD AT YEAR END (totals and breakdown).

Total 31 Aug 2021 £258,239 Total 31 Aug 2020 £238,734 Total 31 Aug 2019 £220,289 Property Fund 21 £160,258 Property Fund 20 £137,989 Property Fund 19 £140,901 Endowments 21 £1,693 Endowments 20 £1,479 Endowments 19 £1,479 Legacies Aug 21 £0 Legacies Aug 20 £913 Legacies Aug 19 £928 Mission Fund Aug 21 £76 Mission Fund Aug 20 £105 Mission Fund Aug 19 £105 General Fund at 31.8.21 £96,212 General Fund at 31.8.20 £98,248 General Fund at 31.8.19 £76,876

RESERVES Total funds held = £258,239.

----- Start of picture text -----
£115,000
£60,000
£20,000 £20,000
£8,000 [£10,000 ] £8,800 £11,439
£5,000
----- End of picture text -----

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

Worship, Prayer & Small group:

Sunday worship: Morning worship at 10.45am with one per month being more all age focussed (from November 2021);

Prayer: Monday, Wednesday and Friday mornings at 10am – these currently being led online although some are now being streamed from inside our church building

Online Bible study, Thursdays @ 6.30pm, 5‐10 attenders; Church YouTube page – recorded worship & prayers (since December 2020, average views per ‘event’ = 75).

Main church/city centre based Outreach:

Listening Post (one‐to‐one, non‐appointment listening service with twelve trained volunteers) – 2015‐19 average no. accessing Listening Post = 770. Over the past year the service has operated only on one day each week, Mondays, due to a reduction in the number of volunteers;

‘BFG’ – Brunswick Friendship Group (weekly drop‐in for homeless, isolated, low income earners – food served/hospitality/prayer offered by trained befrienders), this has yet to be restarted.

‘GAP’ group (‘GAP = ‘Girls Are Proud, a drop‐in for city sex workers) –our Outreach worker acts as a ‘Chaplain’ to this group of vulnerable women who meet for mutual support, creative workshops and to empower one another. This is staffed by a city partner, ‘Changing Lives’ (see below).

Open door policy– we attract a wide range of callers with needs ranging from homelessness to those even contemplating suicide. Either we signpost to appropriate agencies or work with individuals where we have the know‐how, the resources, and the time available.

Church‐sponsored activities/groups:

Brunswick Coffee Shop/Café – operated as a Ltd. Company, wholly owned by the Church, and run by volunteers; over recent years Coffee Shop has yielded circa £30K per annum. Due to more limited opening over the church year 2020‐21, there was no income generated, the Church had to loan the coffee shop money to pay certain bills. The benefit of Coffee Shop continue to be seen in how it enables us to welcome a wide range of people into our building and so exercise more fully our ministry of hospitality.

Men’s Club – weekly 30‐40; a range of different speakers; always a warm welcome to any newcomers.

Prayer space available to all who value using it, occasional use by small groups/for morning prayers.

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

Distinctive features of Brunswick’s mission and ministry:

We connect with a disproportionate number of homeless and vulnerable people. Our capacity to respond effectively to needs presented by these people is dependent upon our staffing levels, whether paid or voluntary.
We have opportunities to establish more partnership working . One example of this is in our closer working with our Chinese Methodist congregation which we anticipate to develop further in the next church year.
We connect with business and civic life . We maintain close links with the Councillors serving the Monument Ward, and with our local MP. We work closely with our city centre policing unit and our community support officers.
We are accessible to a wide variety of people due to our public transport links and our location . This is especially important given the limited parking now available close to our church building.
We serve our Methodist District and Region through hosting day conferences and events. We also host a Circuit office space within our building.
We offer potential for reflective space and prayer. This is prayer space is visible upon entering the building.
Brunswick has important links to Methodist heritage. Dating right back to the 1740s and the Wesley Orphan House, Brunswick has not just a rich heritage but a continuing relevance to the life of our city.

Looking to the Future.

Our hope for the coming year is to increase the level of usage of our building and to continue our core ‘presence’ ministry of serving the vulnerable in our city centre. Another aim will be to develop a closer working with our Chinese Methodist congregation and to give them greater support as they welcome many newcomers to their church following the arrival in the North‐ East of many ‘BNO’s (British Nationals from Overseas) from Hong Kong. This will offer Brunswick Methodist Church new opportunities to partner with other Christians in Newcastle city centre which is vital given our decline in church membership over the past two decades.

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

Reference and Administration Details

Charity Registration Number

1128118

Principal Address

Brunswick Methodist Church

Brunswick Place Newcastle upon Tyne NE1 7BJ

Trustees

Rev’d Paul Cleever‐Thorpe (Chair)

Mrs Kathleen Noreen Hawdon

Miss Joan Kelsall Mr Victor Thomas – Resigned 01.01.2021 Mrs Joan Turner – Resigned 10.09.2021

Revd Gavin Hume Mr David Thornton Mr Samuel Willis Mrs Chris Carroll – Retired 31.08.2021 Mr Hugh Elwood – Retired 31.05.21

Miss Sylvia Fuller

Mrs Jean Mawer Mrs Lola Oloniniyi Mrs Ruth Colclough Mrs Jane Atherton Mr Rob Wylie Mr David Stabler Mrs Sheila Crodden Mr Keith Gilfillan (Circuit Steward) – Appointed 01.09.21

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

Independent Examiner

Jim Dodds

Connected Voice Business Services

C/o Connected Voice

Higham House, Higham Place,

Newcastle upon Tyne,

NE1 8AF

Bankers

Lloyds Bank Plc And The Central Finance Board of The Methodist Church 102 Grey Street 9 Bonhill Street, Newcastle upon Tyne London, NE99 1SL EC2A 4PE

Solicitors

Sintons LLP, Solicitors

The Cube, Barrack Road

Newcastle upon Tyne

NE4 6DB

Surveyors and Valuers

LSH (Lambert Smith Hampton) 41‐51 Grey Street,

Newcastle upon Tyne,

NE1 6EE

Custodian Trustees

The Trustees for Methodist Church Purposes

Central Buildings

Oldham Street Manchester M1 5JQ

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

Method of Appointment or Election of Trustees

The Trustees who have served during the year and since the year‐end are appointed annually by the Church by the general meeting or by being ex‐officio (Ministers in good standing).

Structure, Governance and Management

The Charity’s Managing Trustees listed above all are lay people excepting the two Ministerial staff and three Lay workers all of whom are employed by The Methodist Church. The Managing Trustees meet regularly as the Church Council and delegate some of its work to a leadership team, all of who are trustees.

The Circuit is one of 12 of the Newcastle upon Tyne District and has 15 Churches and one preaching place, of which Brunswick is one.

The governing body of the Circuit is the annual conference of The Methodist Church. The Methodist Church Act 1976 gives the authority under which The Methodist Church acts. The constitution practice and discipline of The Methodist Church together with The Deed of Union (Act of 1929 adopted 1932) govern the activities of the Circuit.

In general The Methodist Church is excepted from the need to register as a charity by the combined effects of Section 46(4) (A) of The Charities Act 1993 and Paragraph 4(2) (C) of the Charities (exception from registration) Regulations 1996 as amended by Statutory Instrument 2014 No 242. Brunswick Church, however, is a separate Registered Charity, number 1128118, in England and Wales.

The Trustees who have served during the year and since the year‐end are set out on page 1. The treasurers are appointed annually by the Church general meeting.

The principal address of the Circuit’s auditors, bankers, solicitors and other advisors are given on page 1.

Funds are transferred to the Circuit on a quarterly basis to meet the commitments to the District and the upkeep of the Circuit.

Reserves Policy

General funds

Funds come from income that the church receives; collections, rental income, leases, catering and other donations, etc. They are used for the operating costs of the church (utility charges, insurances, salaries, routine repairs and maintenance, minor upgrading work, purchases of furnishings and equipment,)

The trustees are aware that if the church were to close there would be a liability to pay redundancy payments, the trustees have not calculated what this liability may be, since the trustees consider that the church will not close; the liability in this respect is nil.

The trustees have an ongoing pension liability, in respect of past service of an employee which amounted to £30,179.00 as at 30th September 2014 by 31st August, 2021 this had reduced to £8,568. The trustees are extinguishing this liability over a ten year period ending 2024 (The figure given is the most recent provided by The Pensions Trust).

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

The reserves policy of the trustees is to hold an appropriate proportion (i.e. 25%) of annual expenditure. This is approximately £250,000 per year / 25% = £62,500. It is the intention of the Managing Trustees (The Church Council) to balance the budget and retain reserves.

The total amount of free reserves (unrestricted funds not invested in tangible fixed assets) are currently £100,000 (2020: £110,000)

Policy for Restricted Funds

Brunswick is a grade II listed city centre church committed to serving the city through social action and Christian witness.

The trustees’ objective is to maintain the restricted funds at a level which is sufficient for the church to carry out its mission.

The managing trustees consider there is a need to ensure that there are adequate funds to meet long term maintenance of the church premises.

Policy Terms relating to Endowment Funds held

These funds are held as per model trust directions issued by the Connexional Property Secretary. The interest from these funds is used for the benevolent fund which is dispersed at the discretion of the ministers.

Notes:

The reserves of Brunswick Methodist Church are held with the Trustees for Methodist Church Purposes and the Central Finance Board of the Methodist Church and Lloyds Bank. They do not cover all eventualities which the trustees can envisage with their work to fulfil city centre mission.

Going Concern

The financial statements have been prepared on a going concern basis. In making their assessment the trustees have reviewed and considered relevant information, including their annual budget and future cash flows. In response to the COVID‐19 pandemic, the trustees have revised their forecasts to take into account measures that they can take with the current resources available to mitigate the impact of the current adverse conditions. The trustees are of the view that the immediate future of the charity for the next 12 months is secure and that on this basis the charity is a going concern.

Statement of Trustees’ Responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The trustees are required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure of the charity for the year. In preparing those financial statements, the trustees are required to:

BRUNSWICK METHODIST CHURCH TRUSTEES ANNUAL REPORT For the year ended 31 August 2021

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees on _______ and signed on their behalf by:

Mr David Stabler, _______

Co Treasurer

BRUNSWICK METHODIST CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

For the year ended 31 August 2021

I report on the financial statements of Brunswick Methodist Church for the year ended 31 August 2021, which are set out on pages 14 to 27.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 ("the Charities Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

examine the accounts under section 145 of the Charities Act,
to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and
to state whether particular matters have come to my attention.

Basis of independent examiner's statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) 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.

I 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.

Jim Dodds Connected Voice Business Services Ltd Higham House Higham Place Newcastle upon Tyne NE1 8AF Date:

BRUNSWICK METHODIST CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 August 2021

6 7 Other trading activities 8 Other income 9 10 Expenditure on: 11 12 Raising funds Operation of the charity *Total expenditure* Net gains/(losses) on investments *Net income/(expenditure)* Transfers between funds *Net movement of funds* Charitable activities Reconciliation of funds Total funds brought forward *Net income/(expenditure) before* *investment gains/(losses)* *Total income* Donations and legacies Income from: Investments Charitable activities Grants and membership fees Notes *Total funds carried forward*	Unrestricted Funds £ 47,946 32,055 120,386 1,853 61 202,300 - 246,106 246,106 ( 43,805 ) - ( 43,805 ) 3,113 ( 40,692 ) 275,015 234,323	Restricted Funds £ 20 - - - 2,587 2,607 280 200 480 2,127 25,689 27,816 ( 3,113 ) 24,703 142,376 167,079	Total 2021 £ 47,966 32,055 120,386 1,853 2,647 204,907 280 246,306 246,586 ( 41,679 ) 25,689 ( 15,990 ) - ( 15,990 ) 417,391 401,401	Total 2020 £
				61,191 11,820 178,177 2,730 2,925
				256,843
				285 270,297
				270,582
				( 13,739 ) ( 2,523 )
				( 16,261 ) -
				( 16,261 ) 433,652
				417,391

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities

The notes on pages 16 to 27 form an integral part of these accounts.

Charity Number 1128118

BRUNSWICK METHODIST CHURCH

BALANCE SHEET

As at 31 August 2021

Fixed assets Tangible assets 19 Investments 20 *Total fixed assets* Current assets Debtors 21 Cash at bank and in hand 22 *Total current assets* Creditors:amounts falling due within one year 23 *Net current assets* *Total assets less current liabilities* Creditors:amounts falling due after more than one year 24 *Total net assets or liabilities* Funds of the charity Unrestricted income funds Restricted income funds *Total funds* Notes	£ 14,000 98,368 112,368 ( 1,980 ) ( 8,568 )	Total 2021 £ 134,551 165,031 299,581 110,388 409,969 401,401 234,323 167,079 401,401	£ 13,895 100,337 114,232 ( 1,980 ) ( 10,901 )	Total 2020 £
				175,681 140,359
				316,040 112,252
				428,292
				417,391
				275,015 142,376
				417,391

The notes on pages 16 to 27 form an integral part of these accounts.

These financial statements were approved by the Board on: and are signed on its behalf by: Mr David Alexander Stabler Co Treasurer

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2 Basis of accounting

2.1 Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Brunswick Methodist Church meets the definition of a public benefit entity under FRS 102.

2.2 Preparation of the accounts on a going concern basis

The financial statements have been prepared on a going concern basis. In making their assessment the trustees have reviewed and considered relevant information, including their annual budget and future cash flows. In response to the COVID-19 pandemic, the trustees have revised their forecasts to take into account measures that they can take with the current resources available to mitigate the impact of the current adverse conditions. The trustees are of the view that the immediate future of the charity for the next 12 months is secure and that on this basis the charity is a going concern.

3 Income

3.1 Recognition of income

Income is recognised when the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is more likely than not that the resources will be received and the monetary value can be measured with sufficient reliability

3.2 Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS102 SORP or FRS102.

3.3 Grants and donations

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria of income recognition are met.

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

3.4 Donated goods and services

Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.

Donated services and facilities are included in the SoFA when received at the value of the gift to the charity provided that the value of the gift can be measured reliably. Donated services and facilities that are consumed immediately are recognised as income with the equivalent amount recognised as an expense under the appropriate heading in the SoFA.

3.5 Volunteer help

The value of volunteer help received is not included in the accounts but is described in the trustees' annual report.

3.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

3.7 Income from membership subscriptions

Membership subscriptions received in the nature of a gift are recognised in donations and legacies.

Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities.

3.8 Investment gains and losses

This includes any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

3.9 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the

4 Expenditure and liabilities

4.1 Liability recognition

Liabilities are recognised when it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

4.2 Charitable activities

Expenditure on charitable activities includes the costs of running the church and other activities undertaken to further the purposes of the charity and their associated support costs.

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

4.3 Governance and support costs

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

4.4 Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

4.5 Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

4.6 Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

5 Assets

5.1 Tangible fixed assets for use by the charity

Individual fixed assets costing £250 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis, the charity does not currently have any tangible fixed assets:

Freehold property - Church Building	0%
Property improvement	10% to 20%	Straight line
Plant and machinery - Lift	3.33%	Straight line
Office and other equipment	20%	Straight line

Church building depreciation is nil because it has retained its value. The lift held under plant and machinery is depreciated over 30 years because it is guaranteed for 25 years after manufacture guarantee ceases.

5.2 Investments

Fixed asset investments in quoted shares, traded bonds and similar investments are valued at initially at cost and subsequently at fair value (their market value) at the year end. The same treatment is applied to unlisted investments unless fair value cannot be measured reliably in which case it is measured at cost less impairment.

Investments held for resale or pending their sale and cash and cash equivalents with a maturity date of less than 1 year are treated as current asset investments.

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

Analysis of income

6 Donations and legacies TMCP District Advance Fund 7 Charitable activities 8 Other trading activities Catering income 9 Other income Pension deficit reduction DCMS (VAT) Fund Other income 10 Income from investments HMRC Job Retention Scheme Connexional fund Brunswick Club for Retired Men Newcastle City Council Collections and Tax recoverable Donations and legacies Special collections Property letting Bank interest Dividend income	Unrestricted Funds £ 41,406 463 77 6,000 - 47,946 - 12,388 19,667 32,055 119,376 1,010 120,386 - 984 869 1,853 61 - 61	Restricted Funds £ - - - - 20 20 - - - - - - - - - - - 6 2,581 2,587	Total 2021 £ 41,406 463 77 6,000 20 47,966 - 12,388 19,667 32,055 119,376 1,010 120,386 - 984 869 1,853 67 2,581 2,647	Total 2020 £
				45,568 8,275 292 6,000 1,057
				61,191
				3,650 - 8,170
				11,820
				164,052 14,125
				178,177
				514 - 2,216
				2,730
				100 2,825
				2,925

Income was £204,907 (2020: £256,843) of which £202,300 was unrestricted or designated (2020: £249,178) and £2,607 was restricted (2020: £7,666)

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

Analysis of expenditure on charitable activities

11 12	*Raising funds* *Charitable activities* Direct costs Training and conferences Support costs Donations and Grants Governance costs Wages and salaries Young Peoples Group Brunswick Friendship Group costs Miscellaneous Brunswick Club for Retired Men costs Donations and collections to other charities Minister, Deaconess and visiting preacher Wages and salaries Heat, light and water Independent examiner's fees for reporting on the accounts Investment management costs (TMCP charges) Assessment Repairs and renewals Insurance Telephone, postage, printing and stationery Advertising Sundries including contracts Connexional fund Bank charges and payroll costs Organ expenses Legal and professional fees Depreciation	Unrestricted Funds £ - - 61,000 1,730 5,228 10,570 13,572 3,117 - 21,285 - 45,087 714 - - 504 - 265 33,428 266 41,131 765 1,980 5,465 246,106	Restricted Funds £ 280 280 - - - - - - - - - - - - - - - - - - - 200 - - 200	Total 2021 £ 280 280 61,000 1,730 5,228 10,570 13,572 3,117 - 21,285 - 45,087 714 - - 504 - 265 33,428 266 41,131 965 1,980 5,465 246,306	Total 2020 £
					285
					285
					69,000 2,553 14,255 9,723 22,654 4,855 376 24,116 1,283 36,197 - 118 582 3,854 4,638 202 32,250 261 39,711 1,689 1,980 -
					270,297

Expenditure on charitable activities was £246,586 (2020: £270,582) of which £246,106 was unrestricted or designated (2020: £264,055) and £480 was restricted (2020: £6,527)

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

13 Fees for examination of the accounts

Independent examiner's fees for reporting on the accounts	2021 £ 1,980 1,980	2020 £
		1,980
		1,980

There were no other fees paid to the examiner (2020: £nil)

14 Analysis of staff costs and the cost of key management personnel

Pension costs (defined contribution pension plan) Salaries and wages Social security costs	2021 £ 72,182 3,153 2,793 78,128	2020 £
		63,201 2,480 2,548
		68,229

No employee received remuneration above £60,000 (2020:nil)

The key management personnel of the charity, comprise the trustees and the centre manager . The total employee benefits of the key management personnel of the charity were £21,454 (2020: £21,236).

15 Staff numbers

The average monthly head count was 6 staff (2020: 5.5 staff) and the average monthly number of full-time equivalent employees during the year were as follows:

Charitable activities The parts of the charity in which the employee's work	2021 Number 3.5 3.5	2020 Number
		3.0
		3.0

16 Transactions with trustees

None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.

Trustees' expenses

No trustee expenses have been incurred in the year.

Transaction(s) with related parties

There have been no related party transactions in the reporting period.

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

17 Defined contribution pension scheme

The Company participates in the scheme, a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards by the Financial Reporting Council, set out in the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall the Trustees has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the schemes previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1 April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement the relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present values of provisions

Present value of provision	31 Aug 21 £ 8,568	31 Aug 20 £ 10,901	31 Aug 19 £
			12,993

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

17 Defined contribution pension scheme continued

Reconciliation of opening and closing provisions

Provision at start of period Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurements - impact of any change in assumptions Remeasurements - impact of any change in assumptions Provision at end of period	Period 31 Aug 21 10,901 54 ( 2,375 ) ( 12 ) - 8,568	Period 31 Aug 20
		12,993 113 ( 2,305 ) 100 - 10,901

17 Defined contribution pension scheme continued

Income and expenditure impact Interest expense Remeasurements - impact of any change in assumptions Remeasurements - amendments to the contribution schedule Contributions paid in respect of future service* Costs recognised in income and expenditure account	Period 31 Aug 21 54 ( 12 ) - - -	Period 31 Aug 20
		113 100 - - -

*Includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.

Assumptions

Present value of provision	31 Aug 21 %per annum 0.63	31 Aug 20 %per annum 0.55	31 Aug 19 %per annum
			0.97

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

18 Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

19 Tangible fixed assets Cost Balance brought forward Additions Disposals Balance carried forward Depreciation Basis Rate Balance brought forward Depreciation charge for year Disposals Balance carried forward Net book value Brought forward Carried forward	Freehold property £ 6,150 - - 6,150 RB 0% - - - - 6,150 6,150	Plant & Property machinery improvements £ £ 61,170 334,608 - - - (41,101) 61,170 293,507 SL SL 3.3% 10-20% 20,390 236,183 2,039 35,497 - (41,101) 22,429 230,579 40,780 98,424 38,741 62,928	Fixtures & equipment £ 160,189 - (71,408) 88,781 SL 20% 129,862 3,595 (71,408) 62,048 30,327 26,732	Total £
				562,117 - ( 112,509 )
				449,607
				386,435 41,131 ( 112,509 )
				315,057

				175,681

				134,551

20 Fixed asset investments

Carrying (fair) value at the beginning of period Additions to investments during period Disposals at carrying value Less impairments Transfer in/(out) in the period Net gain/(loss) on revaluation Carrying (fair) value at end of year	Listed Investment £
	140,359 - ( 1,017 ) - - 25,689
	165,031

21 Debtors and prepayments (receivable within 1 year)

Intercompany debtor Prepayments	2021 £ 6,538 7,462 14,000	2020 £
		5,528 8,367
		13,895

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

22 Cash at bank and in hand Bank deposit account Bank current account Restricted bank accounts	Unrestricted Funds £ 28,212 68,108 - 96,320	Restricted Funds £ - - 2,048 2,048	2021 £ 28,212 68,108 2,048 98,368	2020 £
				59,478 38,841 2,018
				100,337

23 24 Creditors and accruals (payable within 1 year) Pension deficit Independent examination of accounts Creditors and accruals (payable after more than 1 year) Accruals	2021 £ 1,980 1,980 2021 £ 8,568 8,568	2020 £
		1,980
		1,980
		2020 £
		10,901
		10,901

26 Events after the end of the reporting period

No events (not requiring adjustment to the accounts) have occurred after the end of the reporting period but before the accounts are authorised which relate to conditions that arose after the end of the reporting period.

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

27 Analysis of charitable funds

Unrestricted funds General funds	Fund balances brought forward £ 275,015 275,015	Income resource £ 202,300 202,300	Resources expended £ ( 246,106 ) ( 246,106 )	Transfers £ 3,113 3,113	Gains / (losses) £ - -	Fund balances carried forward £
						234,323
						234,323

Purpose of unrestricted funds

General unrestricted fund The 'free reserves' of the charity

Restricted funds Bequest and benevolent fund Mission fund Sale of property Special collections Brunswick club for retired men	Fund balances brought forward £ 2,152 271 137,987 - 1,966 142,376	Income resource £ 32 4 2,545 20 6 2,607	Resources expended £ ( 4 ) - ( 276 ) ( 200 ) - ( 480 )	Transfers £ ( 1,045 ) 20 ( 2,269 ) 180 - ( 3,113 )	Gains / (losses) £ 321 38 25,330 - - 25,689	Fund balances carried forward £
						1,457 334 163,316 - 1,972
						167,078

Purpose of restricted funds

Restricted funds represent income resources used for a specific purpose within the charity as identified by the donor

Bequest and benevolent fund

Mission fund Sale of property Special collections Brunswick club for retired men

Monies received from Estates.

Separate bank account.

Proceeds from the sale of property to be used for a specific purpose. Monies collected and transferred for specific purposes. Group providing fellowship, speakers and refreshments.

Transfers between funds

Between unrestricted and restricted funds Between restricted and Transfer from the benevolence, mission and property funds to unrestricted funds, represents the dividends and realised investment income. Reason for transfer Transfer for contribution to special collections	Amount £
	3,293 ( 180 )

Between restricted and unrestricted funds

BRUNSWICK METHODIST CHURCH

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

28 Capital commitments

As at 31 August 2021, there were no capital commitments.

29 Analysis of net assets between funds

Analysis of net assets between funds
Cash at bank and in hand Other net current assets/(liabilities) Long term assets/(liabilities) Tangible fixed assets Investments	Unrestricted Funds £ 134,551 - 96,320 12,020 ( 8,568 ) 234,323	Restricted Funds £ - 165,031 2,048 - - 167,079	Total 2021 £ 134,551 165,031 98,368 12,020 ( 8,568 ) 401,401	Total 2020 £
				212,812 142,881 79,254 12,426 ( 13,721 )
				433,652