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2021-08-31-accounts

Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021

Charity Number 1128907

Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2021

Annual Report 2021

Welcome to our Annual Report.

Six months after the start of coronavirus pandemic we entered the year 2020/21 cautiously looking forward to some church and community groups returning to the church premises for their weekly and monthly activities. Sunday morning worship services recommenced in the church building at the beginning of September 2021 and were also available to join on zoom so as many people as possible were able to gather for worship. Many thanks to the technical team who made this possible and operated the system every week. As Methodists we particularly missed the congregational singing in the building, an added advantage of zoom worship was that each person could sing to their heart’s content. Perhaps this was the impetus for the introduction of Zoom Praise, a songs of praise style service held monthly on a Sunday evening on zoom only so all could join in the singing.

The coronavirus pandemic taught us all the value of zoom, not just for during periods of lockdown, but as an valuable extra dimension for worship services, as mentioned above, and as an alternative ‘venue’ for meetings, both business and social. Church prayer groups and coffee mornings as well as business meetings have continued to be held on zoom throughout this year as a choice rather than a necessity. Unfortunately, new variants of Covid meant the number of coronavirus cases rose again and by the beginning of 2021 they had soared to such a level that another national lockdown was put in place and all worship and activities were held on zoom again.

Easter was a turning point, a new start in many ways. As we celebrated Jesus’ resurrection we were again able to worship in the church building. Again, church and community groups began planning their return to face to face activities on the premises. Members of the Business Team were very involved throughout the year in assisting with, and approving, Risk Assessments and Action Plans for the groups as they went through this planning process, and I do thank them for all their work in this arduous task. This was also time for considering how we, God’s people in this place, could fulfil our mission of developing a church family which is continually growing in Christian faith, worship and outreach in new ways. One area we recognised that we could offer support was with new parents as many had had such little, if any, contact with other new parents during the coronavirus pandemic. So, our Children’s and Family Worker introduced a parent and baby support group for new parents, which was very much appreciated by the new parents who attended. Another area where we recognised we could serve the community in a new way was due to the number of people who had been bereaved during the pandemic when contact with family and friends, and gatherings for funerals, had been severely restricted. Some members of the Pastoral team attended sessions in bereavement care and started planning for a bereavement support group. In addition outdoor activities were introduced for families with Messy Church walks during the summer.

It has been a year when we have had to be ready to respond to changes due to the coronavirus, we have had to be adaptable and resourceful and I am very grateful to all who contributed in some way, whether big or small, to the mission of Mickleover Methodist Church during this year.

In the year ahead, may we all continue to seek God’s will for ourselves and for Mickleover Methodist Church, constantly looking to Jesus so that others may know the love of God through Christ.

Your friend and minister, Gill

Rev Gill Sharp, Minister with Pastoral Charge.

Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2021

Trustees’ Annual Report

The trustees present their report and financial statements for the year ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: statement of recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland effective on 1 January 2019.

PUBLIC BENEFIT

The Trustees confirm that they have complied with their duties under Section 17 of the 2011 Charities Act with regard to Public Benefit.

AIMS AND OBJECTIVES

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

Our objectives are in line with those of the Methodist Church which are: -

Mission Statement and Our Aims

Mickleover Methodist Church’s mission is to develop a church family which is continually growing in Christian faith, worship and outreach so that all may know the love of God through Christ. We achieve this as we commit ourselves to God in spiritual growth through prayer and bible reading and stewardship of time, talents and money.

TO BE GOD’S PEOPLE EVERYWHERE EVERYDAY

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021

Our Regular Activities

All are welcome to join in our activities whether members of the Church or not.

When planning our activities, the Church Council and Leadership Team have considered the Charity Commissioners guidance on public benefit and in particular, the specific guidance on charities for the advancement of religion. Our regular charitable activities are:

Volunteers

In order for all the Church’s activities to take place we rely on, and are indebted to, the work of everyone who undertake these tasks voluntarily There are approximately 70 volunteers working throughout the church to ensure its activities are run effectively, efficiently and safely.

Another difficult year!

The church reopened in summer 2020 only to close again as Covid infections rose. We were however able to celebrate Christmas in church and to have our usual nativity decorations on show for the community. This was curtailed again as we went into another lockdown. During all this time we maintained regular online services, prayer and coffee groups. A weekly service sheet continued to be delivered to those without IT connections, and we maintained regular contact with our church community via email and phone calls.

Contact with families and children, those who attended Little Micklers and Messy Church, has been via our face book page, emails, phone calls and the delivery of activity packs coordinated by our Children’s and Families worker and many volunteers.

We are grateful for the work undertaken by the Business Team to enable us to put suitable precautions in place to allow the safe reopening of the building and the gradual restart of our face to face church and community activities.

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021

OUR ACHIEVEMENTS ON OUR PRIORITIES FOR 2020/2021

We used the Methodist Church Mission Plan template which aligns our priorities with the 4 aspects of Our Calling.

Worship

Building on the Informal Worship we have started, further developing adult/family worship every week as an integral part of the diverse worship of our “One Church”.

Learning and Caring

Encouraging and enabling more people to seek to deepen and develop their faith through prayer, bible study and small groups, including effective use of video conferencing where appropriate.

Service

Respond to the unmet or emerging needs of our community by exploring new avenues of service, in partnership where appropriate; and supporting ways we serve the community and our charities, both financially and practically.

Evangelism Enable more people to recognize God in their life, know how the gospel has impacted them and be confident in sharing this with others both within and outside of our current church community.

To grow new communities of followers of Jesus enabling those in Missing Generations who meet across our church activities and those in our community to grow in faith individually and collectively, nurturing a sense of belonging.

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021

PRIORITIES FOR 2021/22

Covid has enabled us to think carefully about what our priorities should be for the coming years and we consulted with the congregation on our dreams for the church’s 5 year plan. The Leadership Team then distilled these into a few priorities which we could work on in the coming year. We don’t expect to have everything completed but to use these as stepping stones and we plan to reassess them in a year’s time.

  1. Offering a wide range of worshipping opportunities that attract those inside and outside the church and help us to worship God in spirit and in truth

  2. ¢ Create a baseline of current number of people worshipping e = Start a singing/music group e Develop a new pattern of worship post covid — online and face to face e Introduce one new style of worship e Encourage existing and potential congregation to try different styles of worship

  3. Offering a wide range of opportunities other than worship to help those inside and outside grow in the knowledge and love of God

  4. e Review uptake of opportunities for church members e Organise 2 new opportunities; 1 for congregation; 1 for the community e Conduct a survey of where people are on their journey of faith

  5. Our building to become a thriving Christian Community so that the people of Mickleover see the Church as a place of support, acceptance and love

  6. ° Review the use of the building to check space and usefulness to the community and availability to church

  7. e Re-start church-based activities that outreach to the community e Review and develop better methods of communications e Start at least one new activity to meet local community needs e Conduct survey of groups using the building, re sense of belonging and what church could do to help

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  1. God’s people to be equipped and challenged to transform the world

  2. e Have a service series on social action

  3. Develop the Eco Church theme corporately and individually

  4. e Doan assets survey of church people and their involvement in social action

Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2021

FINANCIAL REVIEW

The finances of the Church were still affected by the corona virus pandemic just like many other organisations and charities. Our income remained static compared to the previous year and it is thanks to our members generous giving that the final deficit was as low as it was and the reasons are detailed below.. Our support for other Methodist causes and external organisations also continued to suffer.

Income trends

The Statement of Financial Activities shows total incoming resources of £207.1k, a smal] decrease of approximately 0.25% on the previous year. Income from weekly offertories and Gift Aid income totalled £81.1k which equates to 39.2% of the total income and represents a 1.3% increase in personal giving on the previous year. As a Charity registered for Gift Aid, we received approximately £14.4k from the Inland Revenue for all donations and regular giving through the Gift Aid scheme. Income for offerings and regular giving through monthly standing orders and the weekly envelope scheme accounts for a major proportion of our income.

The rental income of £23.4k was received from all sources including the hire of the church halls to various groups and individuals in the community. Income from the two cottages that the Church Council manage contributed £11.1k of the total income from lettings.

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Expenditure trends

The greater part of the income has been used to make payment of £59.1k to the Derby Circuit for our proportion of the Circuit Assessment. This amounts to approximately 26.4% of our total costs and decreased by 7% on the previous year. A significant amount of the Circuit assessment is used to pay the District assessment, stipends and related costs to Ministers. The other expenditure covers the running costs of the local church and these have enabled us to meet the financial commitments of carrying out its charitable objectives.

There is a deficit in funds of £16.2k for the year although this does include approximately £13.3 for depreciation of the organ and AV equipment. The total fund balance now stands at £1,931.1k of which £47,4k is for restricted funds.

Fund balances

As at 31 August 2021 the net current assets of the Church were £102.6k which is more than sufficient to provide four months' cover for expenditure.

The restricted net current assets of the Church at 31 August 2021 were £47.4k giving approximately six month’s cover for expenditure.

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Plans for 2022/23

Church financial plans for the coming year have been prepared on the basis of an average of the previous three years subject to any specific anomalies within those figures. Any specific items planned for the coming year have also been incorporated into the financial plan.

Reserves Policy

The Church Council has considered the level of reserves which should be maintained within the Charity and this will be reviewed annually. Such reserves are needed for each fund to cover working capital, the risk of possible shortfalls in charitable income and other contingencies.

Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021

The General Fund is required to meet our contribution to the Derby Circuit for ministerial stipends, our current mission and outreach plans together with the normal running expenses associated with the church. Personal giving plus tax recovered from Gift Aid and income from lettings is sufficient to meet our contribution as our share of the Circuit Assessment and general running costs of the premises.

It is our policy, if funds allow, to retain reserves of: -

There is a further £47.4k held in other restricted funds which will be used according to their designation.

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021 - continued

REFERENCE AND ADMINISTRATIVE INFORMATION

NAME OF CHARITY

Mickleover Methodist Church

CHARITY NUMBER DATE OF REGISTRATION PRINCIPAL OFFICE ADDRESS

1128907 31 March 2009 Mickleover Methodist Church Station Road Mickleover Derby DE3 9GH

Tel: 01332 735052

EMAIL

Mick.meth2@gmail.com

WEBSITE

www.mickleovermethodist.org.uk

The members of the Mickleover 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.

A full list of Church Council members and key lay employees are shown on page 9 of this report.

TREASURER

Mr John Spray

The Treasurer acted as the principal officer overseeing the day-to-day financial management and accounting for the Church during the year.

INDEPENDENT EXAMINER

Mrs D J Lockwood , Haines Watts Chartered Accountants Cliffe Hill House 22-26 Nottingham Road Stapleford Nottingham NG9 8AA HSBC Plc 1 St Peter’s Street Derby DE] 2AE Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE

BANKERS

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021 - continued

Members of the Church Council — Officers, Advisors and Lay Workers

Position

Appointed by

Ministers Rev Gill Sharp Chairman Ex-officio Rev Colin Emerson Circuit Minister Ex-officio Vacant Circuit Minister Ex-officio Marilyn Bagworth Secretary to Church Council Ex-officio John Spray Treasurer Ex-officio Dot Thompson Secretary to the Pastoral team Ex-officio Leadership Stewards Janet Patmore Worship Ex-officio Viv Richard Fellowship Ex-officio Dot Thompson Learning and Pastoral Ex-officio Janet Tristram Community and Service Ex-officio Derrick Tuplin Evangelism & Mission Ex-officio Laraine Tuplin Resources & Secretarial Ex-officio Policy Protection Officers Meryl Spray Safeguarding Officer Church Council Michelle Woodcock Safeguarding Officer Church Council Other Members John McCartney Circuit Steward Ex-officio Mike Bagworth Church Member ACM#* Tan Clark Church Member ACM Margaret Clark Church Member ACM Ray Forey Church Member ACM Pam Morgan Church Member ACM Phil Royle Church Member ACM Margaret Vincent Church Member ACM Sue Atherton Children & Families Worker Management Church Council Mike Shooter Ecumenical Officer Church Council Richard Morgan Health & Safety Representative Church Council Anna Forey Chair of the Business Team Church Council Sally Levitt Secretary to the Business Team Church Council Margaret Clark Preschool Management Representative Church Council Richard Morgan Scout Group Representative Church Council Dot Thompson Girls Brigade Representative Church Council

*ACM — Annual Church Meeting

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Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2021 - continued

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Mickleover Methodist Church is a registered Charity (registered charity no. 1128907) and is governed by the Deed of Union (1932) and Methodist Church Act (1976). It is one of twenty one Methodist Churches that form the Derby Circuit which in turn is part of the Nottingham & Derby District and is also accountable to the Methodist Conference.

The registered Charity is a subsidiary of the Methodist Church of Great Britain (Registered Charity no. 1132208).

Organisational Structure

The members of the Church Council are the Managing Trustees of the Charity and are responsible for the aims and objectives of the organisation. It delegates areas of its work to the new Leadership Stewards with the help of the Pastoral and Business Teams. The responsibilities of these teams are:

Leadership Stewards — Jointly responsible, with the minister in pastoral charge, to give leadership and coordination over the whole range of the life and activity of the church, Each steward has responsibility for evangelism, fellowship, learning & pastoral, missing generations, mission and service, resources and worship.

Pastoral Team — Responsible for and provides information to the Church Council on all aspects of care and well-being of all people associated with the church.

Business Team — Responsible for and advises the Church Council on all matters relating to financial control, health and safety and property management.

Election and Appointment of Officers

The Church Council consists of the following ex-officio officers:

Three active Circuit Ministers, The Leadership Stewards, The Church Treasurer, The Secretary of the Pastoral Team, The Secretary of the Church Council meeting, And one Circuit Steward (appointed by the Circuit).

In addition, the Annual Church Meeting (ACM) appoints between six and fifteen members to the Council. The Church Council may appoint a maximum of fifteen further persons to ensure that all areas of the church’s life are adequately represented and in particular that, wherever possible, young people are included in its membership.

The Chair of the Church Council is appointed by the Superintendent Minister of the Circuit, and is usually the Minister given pastoral charge of the Church.

All office holders and members of the Church Council are appointed annually, and may serve for a maximum of six years. This limit may be extended if it would otherwise be impossible to adequately fill an essential office. A list of members of the Church Council is shown on page 9.

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2021 - continued

Trustee Training

A range of guidance produced by Methodist Connexion to support the effective running of the church and the role of the Trustees is given to the Church Trustees at various meetings and training sessions.

Risk Management

The Church Council oversees the strategic risk of the organisation with operational risk assessment and management being delegated to the Business Team. Risk control is exercised appropriately by members of the Business Team undertaking a formal review of strategic and operational risks for the organisation. Risk management is encouraged into the organisation by the Business Team coordinating the risk reviews and obtaining feedback from all users of the premises. 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 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.

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 an image of God and therefore to protect them from harm.

Many children and adults use the premises by attending the activities organised by the church and various external organisations. With this in mind, Mickleover Methodist Church has adopted the Methodist Connexional practice to safeguarding which outlines commitment to the following principles:-

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Our safeguarding policy is updated and approved annually and is managed by the safeguarding officers appointed by Church Council.

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Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2021 - continued

Related parties

The following organisations are an integral part of this church:-

149" Derby Beaver, Cub and Scout group (Sponsored organisation) 10" Derby Girls Brigade Company Mickleover Methodist Pre-school Women’s Fellowship Group Wesley Guild Fellowship Group Little Micklers Childrens Group Funtime

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provision of the Trust Deed require the Trustees 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 financial year. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for maintaining the proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. 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.

This report has been prepared in accordance with the Statement of Recommended Practice; Accounting and Reporting by Charities.

On behalf of the paeie Sharp

Treasurer — John Spray

anklet Sit Rad? Date

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

I report to the Trustees on my examination of the accounts of the Mickleover Methodist Church (The Trust) for the year ended 31 August 2021.

Responsibilities and Basis of Report

As the Charity Trustees of the Trust, 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 Trust’s accounts carried out under section 145 of the 2011 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

I have completed my examination. I confirm that no material 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 Trust 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 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 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.

0D FD. troHUavroe)

Diane Lockwood FCA, FCCA, ATT(Fellow) Haines Watts Chartered Accountants Cliffe Hill House 22-26 Nottingham Road Stapleford Nottingham NG9 8AA

Date: it - Ferrey Ne) wore

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Mickleover Methodist Church

Statement of Financial Activities For The Year Ended 31 August 2021

Total Total
Unrestricted Restricted Funds Unrestricted Restricted Funds
Funds Funds 2021 Funds Funds 2020
Note £ £ £ £ £ £
INCOMING RESOURCES
Donations and Legacies 2(a) 88,242 3,754 91,996 83,970 3,368 87,338
Charitable Activities 2(b) 17,172 86,779 103,951 21,588 87,033 108,621
InvestmentIncome 2(c) 113 - 113 892 - 892
Investment Property Income 2c) 11,100 - 11,100 10,847 - 10,847
TOTALINCOMING RESOURCES 116,627 90,533 207,160 117,297 90,401 207,698
EXPENDITURE
Expenditureon CharitableActivities 3(a) -3(b) 135,034 88,340 223,374 176,736 $2,887 259,623
TOTALEXPENDITURE 135,034 88,340 223,374 176,736 82,887 259,623
Net gains (losses) on investments
assets — unrealised - - - - - -
NETINCOME/EXPENDITURE (18,407) 2,193 (16,214) (59,439) 7,514 (51,925)
Transfer Between Funds - - - 380 (380) -
NetMovement inFunds (18,407) 2,193 (16,214) (59,059) 7,134 (51,925)
RECONCILIATION OFFUNDS
Total funds brought forward 1,902,145 45,171 1,947,316 1,961,204 38,037 1,999,241
TOTAL FUNDS
CARRIEDFORWARD 7 1,883,738 47,364 1,931,102 1,902,145 45,171 1,947,316

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Mickleover Methodist Church

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Balance Sheet as at 31 August 2021

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||||||||| |---|---|---|---|---|---|---|---| |Note|Restricted|Unrestricted| |Funds|Funds|2021|2020| |FIXED ASSETS|£|£|£|£| |Tangible Fixed|Assets|4|-|1,534,113|1,534,113|1,547,423| |Fixed|Asset|Investments|6|-|247,000|247,000|247,000| |Total|Fixed|Assets|-|1,781,113|1,781,113|1,794,423| |CURRENT|ASSETS| |Sundry Debtors|63|24,067|24,130|23,397| |Investments|25,904|77,174|103,078|108,102| |Cash|at bank|and|in hand|37,552|7,664|45,216|41,593| |Total|Current|Assets|63,519|108,905|172,424|173,092| |CREDITORS:|Amounts| |falling|due|within|one|year| |Sundry Creditors|16,155|3,880|20,035|17,799| |(16,155)|(3,880)|(20,035)|(17,799)| |NET CURRENT ASSETS|47,364|105,025|152,389|155,293| |TOTAL ASSETS|LESS| |CURRENT|LIABILITIES|47,364|1,886,138|1,933,502|1,949,716| |CREDITORS| |Amounts|falling|due| |after more|than|one year|5|-|(2,400)|(2,400)|(2,400)| |NET ASSETS|47,364|1,883,738|1,931,102|1,947,316| |REPRESENTED|BY|FUNDS|7| |Unrestricted|funds|-|General|1,596,597|1,609,377| |-|Designated|287,141|292,768| |Restricted|funds|47,364|45,171| |TOTAL CHARITY FUNDS|8|1,931,102|1,947,316|

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Approved by the Church Council on feteDee and signed on its behalf by: Rev Gill Sharp - Minister Ch bSlop Mr John Spray - Treasurer Flo, raat , ; Dated - F, cn opr

The notes on pages 16 to 22 form part of these financial statements

Mickleover Methodist Church

Notes to the Financial Statements for the year ended 31 August 2021

1. ACCOUNTING POLICIES

Basis of Accounting

The financial statements have been prepared in accordance with the Church Accounting Regulations 2006 together with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective on 1 January 2019, and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and Charities Act 2011. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The church constitutes a public benefit entity as defined by FRS102.

The Trustees’ consider that there are no material uncertainties about the church’s ability to continue as a going

concer.

The financial statements are presented in sterling (£).

Funds

Unrestricted funds represent the funds of the Church that are not subject to any restrictions regarding their use and are available for application on the general purposes of the Church. These may include funds designated for a particular purpose by the Church.

The purpose of any restricted funds is noted in the accounts.

The accounts only include transactions, assets and liabilities for which the Church can be held responsible.

Incoming Resources

Voluntary income and capital sources

Collections and regular giving are recognised when received by or on behalf of the Church. Income tax recoverable on covenanted or gift aid donations is recognised when claimable.

Grants to the Church are accounted for when received as soon as the Church is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the Church is reasonably certain. Funds raised by social and similar events are accounted for gross.

Other ordinary income

Rental income from the letting of church premises is accounted for when the hiring takes place and also for two properties owned shown as Fixed Asset Investments.

For legacies, entitlement is taken as the earlier of:

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

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Mickleover Methodist Church

Notes to the Financial Statements

for the year ended 31 August 2021 — continued

Donated Services and Facilities

Donated services and facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt, where this can be quantified.

Income from investments

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.

Realised gains and losses

Realised gains or losses are recognised when investments are sold and are calculated as the difference between sales proceeds and the previous year end market value.

Unrealised gains or losses are accounted for on revaluation of investments at their year end market values.

Resources Expended

Expenditure is recognised on an accruals basis as a liability is incurred and includes VAT where appropriate, which cannot be recovered. This is recognised when a liability is incurred or a constructive obligation arises that results in the payment being unavoidable.

Giving

Grants and donations are accounted for when paid.

Costs directly related to the work ofthe church

The Church assessment is accounted for when payable and any amount unpaid at the year end is shown as a creditor in the Balance Sheet or debtor should the amount be paid in advance.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Fixed Assets

Land and buildings

Land and buildings held on behalf of the Church for its own purposes are shown at cost. No depreciation is charged on land and buildings as the residual value is believed to be higher than historical cost. Previously the assets were held at a revalued amount, these are now shown at cost and this has resulted in a revaluation adjustment.

Equipment and otherfixtures andfittings

Equipment used for church purposes is depreciated over a 10 year period individual items of equipment with a purchase price of £1,000 or less are written off in the period in which the asset is acquired.

Investments

Two properties at 34 and 36 Station Road, Mickleover, Derby — these are not depreciated and are included at fair value as unrestricted assets.

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Mickleover Methodist Church

Notes to the Financial Statements for the year ended 31 August 2021 - continued

Pension costs

The church operates a defined contribution pension scheme with Standard Life. Contributions payable to the church pension scheme are charged in the period to which they relate.

Debtors & Prepayments

Debtors includes outstanding letting invoice in August.

Creditors

Creditors includes outstanding item relating to utilities and services payable after the year end date supplied before that date. Creditors and provisions are normally recognised at their settlement amount.

Financial Instruments

The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Judgements and Key Sources of Estimation Uncertainty

The preparation of accounts using generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and labilities at the date of the accounts and the reported amounts of revenues and expenses during the reporting period.

The key estimates and assumptions used in the Financial Statements are detailed in the accounting policies.

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||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Funds|Total|Funds| |2. INCOMING RESOURCES|Funds|Funds|2021|2020| |£|£|£|£| |2(a)|Donated|Income — Voluntary| |Collections|and|regular giving|62,968|3,754|66,722|64,398| |Gift Aid|recoverable|14,409|-|14,409|15,707| |Donations|(National|and|Local)|10,865|-|10,865|7,233| |Total|Donations|and|Legacies|88,242|3,754|91,996|87,338| |2(b)|Gross|income|from|events|and|activities| |Other Income — Internal|Organisation|-|86,755|86,755|86,314| |Fund|Raising Events|660|-|660|2,067| |Lettings|Income|12,263|-|12,263|12,906| |Sundry|and|Legacy|Income|4,249|24|4,273|7,334| |17,172|86,779|103,951|108,621| |2(c)|Investment|Income| |Bank|interest|113|-|113|892| |Investment|Property|Income|11,100|-|11,100|10,847| |11,213|-|11,213|11,739| |TOTAL INCOMING|RESOURCES|116,627|90,533|207,160|207,698|

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Letting income - is used solely to enhance the activities of the church and its objectives.

Trustees aggregate giving for the year totalled £29,625 (2020: £26,950).

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Mickleover Methodist Church

Notes to the Financial Statements

Notes to the Notes to the Financial Statements Financial Statements Financial Statements
, for the year ended 31 August2021 —continued
3. RESOURCES EXPENDED Unrestricted Restricted Total Funds Total Funds
Funds Funds 2021 2020
£ £ £ £
3(a) Giving
Grants and Donations - - - 3,168
Connexional Funds 1,625 - 1,625 1,625
1,625 - 1,625 4,993
3(b) Directly related to thework ofthe Church
Circuit Assessments 59,060 - 59,060 63,492
Internal Organisation - 18,215 18,215 14,661
Insurance and Utilities 8,460 - 8,460 8,137
Property Expenditure 21,601 - 21,601 57,544
Office and other costs 7,708 3,754 11,462 11,113
Salaries 23,270 66,371 89,641 86,373
Depreciation 13,310 - 13,310 13,310
133,409 88,340 221,749 254,630
Total Resources Expended 135,034 88,340 223,374 259,623
Other costs include the Independent Examination fee of£750.
4, TANGIBLE FIXEDASSETS Freehold Land Equipment Total
and Buildings
£ £ £
Cost At 1 September2020 1,475,000 114,506 1,589,506
Additions - - -
At 31 August2021 1,475,000 114,506 1,589,506
Depreciation At 1 September2020 - 42,083 42,083
Charge forYear - 13,310 13,310
Disposals - - -
At 31 August2021 - 55,393 55,393
NetBookValue At 31 August2021 1,475,000 59,113 1,534,113
At 3]August2020 1,475,000 72,423 1,547,423

The freehold iand and buildings comprise the land and property at Station Street, Mickleover.

The Church building and the cottage are currently insured for £2,860,197. A revaluation in 2017 reduced the value of the land and buildings to the original cost.

5. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

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2021 2020
£ £
Church of North India Partnership 2,400 2,400
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The church has committed to support the training of a Presbyter in the Church of North India, a commitment of £600 for 4 years which started in 2013/14. At present the church is waiting to hear the name of the Presbyter it is supporting and therefore the amount remains unpaid.

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Mickleover Methodist Church

Notes to the Financial Statements for the year ended 31 August 2021 — continued

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |6(a)|Investment|Properties|No. 34|No.|36|Total| |Two|properties|at|Station Road,|Mickleover,|Derby,|DE3|9GH|£|£|£| |Valuation|as|at 24 24|August 2016 2016|undertaken by Graham by Graham Graham|Penny.|142,000|105,000|247,000|

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Valuation as at 24 24 August 2016 2016 undertaken by Graham by Graham Graham Penny.

The properties have not been depreciated as they are held as investment assets. In the previous year the Charity Commission offered guidance to the Church Council that these assets could be treated as unrestricted assets. The movement of the properties to the designated fund was approved at a Church Council meeting and the transfer actioned at 31 August 2019.

6(b) Investments

The funds that support the various funds 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.

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.

  1. Fund Details

Key: R— Restricted Income Funds, UR — Unrestricted Funds

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Fund|Fund| |Balances|Balances| |Brought|Carried| |Fund|Names|Type|Purpose|and|Restrictions|Forward|Income|Expenditure|Transfers|Forward| |£|£|£|£|£| |Provide|outreach|and|mission| |General|Fund|UR|and maintain|the|building|1,609,377|100,920|113,700|-|1,596,597| |Provide|outreach|to|children|of| |Children &|Families|Worker|UR|Mickleover|24,004|3,420|17,940|-|9,484| |Funds|held|in memory|of loved| |Legacies|UR|ones|3,744|200|-|-|3,944| |Upkeep|of cottages|owned|by|the| |Cottages Fund|R|Church|265,020|12,087|3,394|-|273,713| |Provide|relief to|the|poor|and| |External|Organisations|R|disadvantaged|-|3,754|3,754|-|-| |Relief of poverty|and|distress|in| |Benevolent Fund|R|the poor|35|-|-|-|35| |Provide|care|and|support|to|the| |Funtime|R|elderly|-|24|-|-|24| |Support of|young|children|and| |Little|Micklers|R|their|carers|249|-|-|-|2490| |Provision|of learning,| |development|and|care|for|:| |Mickleover|Meth|Preschool|R|children|40,553|85,850|83,663|-|42,740| |Provides|care|and|support|to|the| |Women’s Fellowship|R|women|of the|Church|1,282|1|:|-|1,283| |Provide|fellowship|for|the| |Wesley|Guild|R|community|at large.|320|-|-|-|320,| |Help|girls|become|followers|of| |10 Derby|Girls|Brigade|R|Jesus|Christ|2,732|905|924|-|2,713|:| |Total|Funds|1,947,316|207,161|223,375|-|_ 1,931,102| |Designated|Fund|Balance| |There|are|two|accounts|set|aside|for|specific|use,|these|are:-| |Children’s|and|family worker|9,484| |Legacies Donation|3,944| |Cottages|(see|note|6(a))|273,713| |287,141|

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Designated Fund Balance

There are two accounts set aside for specific use, these are:-

. : :

|

Mickleover Methodist Church

Notes to the Financial Statements

for the year ended 31 August 2021 — continued

Year Ended 31 August 2020

Year Ended 31 August 2020
Fund Fund
Fund Names Type Purpose and Restrictions Balances
Brought
Forward		 Income Expenditure Transfers Balances
Carried
Forward
£ £ £ £ £
Provide outreach and mission
General Fund UR and maintain the building 1,614,060 97,786 155,236 52,767 1,609,377
Provide outreach to children of
Children& Families Worker UR Mickleover 37,116 5,266 18,378 - 24,004
Funds held in memoryofloved
Legacies UR ones 2,194 1,600 50 - 3,744
Upkeep ofcottages owned by the
CottagesFund R Church 307,834 12,645 3,072 (52,387) 265,020
Provide reliefto the poor and
External Organisations R disadvantaged - 3,368 3,368 - -
Reliefofpoverty and distress in
BenevolentFund R the poor 135 - 100 - 35
Funtime R Provide care and supportto the
elderly		 - 30 - (30) -
Support ofyoung children and
Little Micklers R their carers 286 689 376 (350) 249
Provision oflearning,
development and care for
MickleoverMeth Preschool R children 33,447 83,707 76,601 - 40,553
Provides care and support to the
Women’s Fellowship R womenofthe Church 1,228 748 694 - 1,282
Provide fellowship for the
Wesley Guild R community at large 246 575 501 - 320
Help girls become followers of
10 Derby Girls Brigade R Jesus Christ 2,695 1,284 1,247 - 2,732
Total Funds 1,999,241 207,698 259,623 - 1,947,316
8. ANALYSIS OF NET ASSETS BY FUND
Total Total ,
Unrestricted Restricted Funds Funds
Funds Funds 2021 2020
£ £ £ £
Fixed Assets 1,781,113 - 178,113 1,794,423
Current Assets/Liabilities 102,625 47,364 149,989 152,893
Fund Balance 1,883,738 47,364 1,931,102 1,947,316
YearEnded 31 August2020 Total Total
Unrestricted Restricted Funds Funds
Funds Funds 2020 2019
, £ £ £ £
Fixed Assets 1,794,423 - 1,794,423 1,789,139
Current Assets/Liabilities 107,722 45,171 152,893 210,102
FundBalance 1,902,145 45,171 1,947,316 1,999,241

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Mickleover Methodist Church

:

: :

Notes to the Financial Statements

for the year ended 31 August 2021 — continued

9. STAFFCOSTS Total Total
2021 2020
£ £
Wages and salaries 86,813 83,718
Pension costs 2,828 2,655
89,641 86,373

The average number of staff employed during the year were 9 (2020: 10), of those 3 are within the pension scheme.

No employee earned £60,000 p.a or more.

No Trustees /Church Council members received or is due to receive any expenses or remuneration for the year. There are no related party transactions to note.

10. PENSION CONTRIBUTIONS

Mickleover Methodist Church contributes to the pension scheme an amount based on the employee’s basic salary and the employees are required to make a minimum contribution. The contributions for the year totalled £2,828 (2020: £2,655) and there were no contributions outstanding at the year end.

Mickleover Methodist Church had 3 active members in the pension scheme at 31 August 2021.

11. FUTURE COMMITMENTS

Mickleover Methodist Church has entered into a rental commitment for a photocopier which expired in 2021; the quarterly rental charge was £358.

12, RELATED PARTY TRANSACTIONS

This Year

This YearYear
Payments to Payments to
related party related party
Description during theyear during the year
Name ofrelated party Relationship of transaction 2021 2020
£ £
JMA Methodist Fund Donation - 515
Mission in Britain Fund Methodist Fund Donation - 159
Fund forSupportof
Presbyters& Deacons		 MethodistFund Donation 425 425
Fund for Property Methodist Fund Donation 500 500
World Mission Fund Methodist Fund Donation - 95
AllWeCan Partner Donation 1,335 585
LWPT Partner Donation 375 375
MethodistHomes Partner Donation 325 375
Action for Children Partner Donation - 222
Live atHome Mickleover Partner Donation - 50
MethodistWomen in Britain Partner Donation - 50
Total 2,960 3,351

There are no other related party transactions.

22