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2022-08-31-accounts

Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2022

Charity Number 1128907

Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2022

Annual Report 2022

Welcome to our Annual Report which I hope you will find informative and stimulating.

First of all, a word of thanks to all those who have been involved in preparing this report but also to all who have supported the church in whatever way during the last year. This support has enabled us to continue our many regular activities both in church and in the community around us especially after the coronavirus pandemic.

The start of the connexional year 2021/2022 was the first time in over eighteen months that we were able to meet in so many different ways without the restrictions presented to us with the covid pandemic. Gone were the restrictions on mask wearing, not singing during our services and of not being able to meet and greet one another. Our regular meetings were now able to take place in person although some have continued on Zoom. Our Sunday morning worship services continue to offer our congregation the option of attending in person or joining us on Zoom with those who do being able to be fully interactive in the services whenever required. We now make use of social media through Facebook to advertise our regular services and activities.

Many of our church and community groups have returned and we are delighted to have seen an increase in the number of groups and individuals that now use the building, recognising it as a Community Church. The increase in footfall of people now using the building was not what we were expecting when the centre became fully operational again, but it is good that our community make full use of our facilities. The Business Team have continued their good work of overseeing the maintenance of the building and ensuring all aspects of health and safety are met. They have also done sterling work to ensure that the finances are in a healthy state to continue to provide a welcome to our local community, and to enable us to fulfil our Christian mission.

The Leadership Team continued to meet regularly throughout the year to implement our strategies in line with Our Calling of the Methodist Church. The worship forum has provided a valuable discussion group for planning and exploring different ways of worship. An example of this was a sung communion service (‘Bread and Wine” by Darren Garfield) on Maundy Thursday led by our music group. Pastoral Care continued to be an essential element of church family life, not just by pastoral visitors but by all members of the church community.

Our uniformed organisations, Little Micklers parent and toddler group and Messy Church have continued to meet a need for our community and have attracted families from the many new estates being developed around Mickleover. Our Preschool continues to thrive with the number of sessions for young children increasing at the start of the year allowing more of our local families to access the care and early years learning for their children. In demonstrating our commitment to Mission and Outreach, our main achievements throughout the year were: - * — replanting part of the area in front of our building into an eco-insect friendly garden with a friendship bench that anyone passing by can stop and relax for a while to enjoy the surroundings e atea for the whole community to celebrate the late Queen’s Platinum Jubilee

During the year, it was with regret that we heard that our minister, Rev Gill Sharp sought a curtailment of her ministry in Mickleover and the Derby Circuit at the end of August 2022. The Church wish to express their deep gratitude to her and Phil for their ministry and particularly the gracious and effective way they piloted the Church through the Coronavirus Pandemic. We express thanks to Rev. Jackie Quarmby who provided ministerial cover during Gill Sharpe's sabbatical leave. The challenge for the Church in the year ahead was to find a replacement minister who could lead us and take us forward in order that the church may continue to fulfil its mission of developing a church family which is continually growing in Christian faith, worship, and outreach. At this late stage it was too late to enter stationing for the year 22/23.

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Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2022

Annual! Report 2022 - continued

The Circuit leadership team asked Ministers to help, and in August, was pleased to accept the offer from Rev. David Owen to take on extra duties and to be the designated minister for Mickleover for the year 22/23. In the year ahead, may we all continue to seek God’s will for ourselves and for Mickleover Methodist Church, that others may know the love of God through Christ.

Rev David Owen, Minister with Pastoral Charge

Trustees’ Annual Report

The trustees present their report and financial statements for the year ended 31 August 2022. 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 2022

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 40 volunteers (mostly over 70 years of age) working throughout the church to ensure its activities are run effectively, efficiently and safely.

OUR ACHIEVEMENTS ON OUR PRIORITIES FOR 2021/22

This was the first year of our 5-year plan where we considered our priorities under the Methodist Church Mission Plan template and the 4 aspects of Our Calling, Worship, Learning and Caring, Service and Evangelism. It has also been a year when we have almost been back to normal but of course it’s a new normal, at last able to meet together in our building with both the church and the wider community.

Our overall goal for the next 5 years

For all those inside and outside the church to grow in the love of God and show that love by serving the Community of Mickleover and beyond.

  1. By 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

This is what we have achieved in year I

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2022

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

This is what we have achieved in year 1

This is what we have achieved in year I

This is what we have achieved in year I

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Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2022

PRIORITIES FOR 2022/23

Actions for year 2 of our 5 year plan

Develop our worship and Learning Opportunities

General

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Mickleover Methodist Church

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Annual Report and Financial Statements for the year ended 31 August 2022

FINANCIAL REVIEW

After two years where our finances have been affected by Covid-19, it is good to report that our financial activity has returned to pre-pandemic levels. Our income has increased significantly over the year to maintain the increase in expenditure now that the Church Centre is fully operational again. It is thanks to our members generous giving that the surplus at the year-end (before accounting for depreciation) was much better than expected. In addition, the increased use of our premises by community organisations since the pandemic has seen a significant increase in the footfall on our premises and a corresponding increase in rental income. Unfortunately our support for other Methodist causes and external organisations has not yet increased to prepandemic levels.

Income trends

The Statement of Financial Activities shows total incoming resources of £238.5k, a significant increase of approximately 15.1% on the previous year. Income from weekly offertories and Gift Aid income totalled £89.1k which equates to 37.4% of the total income and represents a 9.8% increase in personal giving on the previous year. As a Charity registered for Gift Aid, we received approximately £18.2k from the Inland Revenue for all donations and regular giving through the Gift Aid scheme. Income for offerings and regular giving is mainly through monthly standing orders and the weekly envelope scheme and approximately 95% of the total is given in this way.

The rental income of £34.3k was received from all sources including the hire of the church halls to various groups and individuals in the community. This represents a significant increase of 86.8% on the previous year. Income from the two cottages that the Church Council manage contributed £11.1k of the total income from lettings.

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 is the same amount as last year and was agreed by the Circuit to help churches through the financial consequences of the pandemic, It equates to approximately 24.5% of our total costs. 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 £2.5k for the year although this does include £13.3k for depreciation of the organ and AV equipment. The total fund balance now stands at £1,928.6k of which £52.8k is for restricted funds.

Fund balances

As at 31 August 2022 the net current assets of the Church were £108k which is more than sufficient to provide four months' cover for expenditure.

The restricted net current assets of the Church at 31 August 2022 were £52.8k giving approximately six month’s cover for expenditure.

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.

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2022

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.

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 £52.8k 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 2022 - 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

WEBSITE

mick.meth2@gmail.com

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

BANKERS

HSEC Pic 1 St Peter’s Street Derby DE1 2AE

Central Finance Board of the Methodist Church 9 Bonhill Street London EC2A 4PE

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2022 - continued

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

Position Appointed by Ministers Rev Gillian Sharp Chairman Ex-officio (Resigned 31.8.22) Rev David Owen Chairman Ex-officio Rev Dr. Stuart Bell 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 (Resigned 14.1.23) Policy Protection Officers Meryl Spray Safeguarding Officer Church Council Michelle Woodcock Safeguarding Officer Church Council Other Members John McCartnery Circuit Steward Ex-officio (Resigned 31.12.22) Mike Bagworth Church Member ACM* Tan Clark Church Member ACM Margaret Clark Church Member ACM Ray Forey Church Member ACM Adam McLoughlin 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 Shooler Ecumenical Officer Church Council (Resigned 20.10.22) 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

The positions of Ecumenical Officer and Circuit Steward are now vacant.

*ACM — Annual Church Meeting

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Mickleover Methodist Church

Annual Report and Financial Statements for the year ended 31 August 2022 - 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 nineteen 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, community, 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

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Annual Report and Financial Statements for the year ended 31 August 2022 - 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:-

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

Annual Report and Financial Statements for the year ended 31 August 2022 - continued

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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 Little Micklers Childrens Group

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.

DROwn ~

On behalf of the Trustees-Rev David Owen

Treasurer — Johd Spray

Date eel Fes, 1923 |

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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 2022.

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.

Diane Lockwood FCA, FCCA, ATT(Fellow)

Haines Watts Chartered Accountants Cliffe Hill House 22-26 Nottingham Road Stapleford Nottingham NG9 8AA

Date:

Li. tL. v ; 24

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Mickleover Methodist Church

Statement of Financial Activities For The Year Ended 31 August 2022

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Total|Total| |Unrestricted|Restricted|Funds|Unrestricted|Restricted|Funds| |Funds|Funds|2022|Funds|Funds|2021| |Note|£|£|£|£|£|£| |INCOMING|RESOURCES| |Donations and|Legacies|2(a)|96,443|4,496|100,938|88,242|3,754|91,996| |Charitable|Activities|2(b)|32,587|93,262|125,849|17,172|86,779|103,951| |Investment Income|2(c)|311|-|311|113|-|113| |Investment Property|Income|2(c)|11,405|-|11,405|11,100|:|11,100| |TOTAL INCOMING RESOURCES|140,746|97,758|238,504|116,627|90,533|207,160| |EXPENDITURE| |Expenditure|on|Charitable|Activities|3(a)|-3(b)|148,665|92,298|240,963|135,034|88,340|223,374| |TOTAL EXPENDITURE|148,665|92,298|240,963|135,034|88,340|223,374| |Net|gains|(losses)|on|investments| |assets|—|unrealised|-|-|-|-|-|-| |NET INCOME/EXPENDITURE|(7,919)|5,460|(2,459)|(18,407)|2,193|(16,214)| |Transfer|Between|Funds|-|-|-|-|-|-| |Net Movement|in|Funds|(7,919)|5,460|(2,459)|(18,407)|2,193|(16,214)| |RECONCILIATION|OF FUNDS| |Total|funds|brought|forward|1,883,738|47,364|1,931,102|1,902,145|45,171| |a| |TOTAL|FUNDS| |CARRIED FORWARD|7|1,875,819|52,824|1,928,643|1,883,738|47,364|1,931,102|

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Mickleover Methodist Church

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Balance Sheet as at 31 August 2022

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Note|Restricted|Unrestricted| |.|Funds|Funds|2022|2021| |FIXED ASSETS|£|£|£|£| |Tangible|Fixed|Assets|4|-|1,520,803|1,520,803|1,534,113| |Fixed|Asset|Investments|6|-|247,000|247,000|247,000| |Total|Fixed|Assets|-|1,767,803|1,767,803|1,781,113| |CURRENT|ASSETS| |Sundry Debtors|-|29,563|29,563|24,130| |Investments|34,962|77,165|112,127|103,078| |Cash|at bank|and|in hand|38,102|7,491|45,593|45,216| |Total|Current|Assets|73,064|114,219|187,283|172,424| |CREDITORS:|Amounts| |falling|due|within|one|year| |Sundry Creditors|20,240|3,803|24,043|20,035| |(20,240)|(3,803)|(24,043)|(20,035)| |NET CURRENT ASSETS|52,824|110,416|163,240|152,389| |TOTAL|ASSETS|LESS| |CURRENT|LIABILITIES|52,824|1,878,219|1,931,043|1,933,502| |CREDITORS| |Amounts|falling|due| |after|more|than one|year|5|-|(2,400)|(2,400)|(2,400)| |NET ASSETS|52,824|1,875,819|1,928,643|1,931,102| |REPRESENTED|BY|FUNDS|7| |Unrestricted|funds|-|General|1,589,115|1,596,597| |-|Designated|286,704|287,141| |Restricted|funds|52,824|47,364| |TOTAL CHARITY FUNDS|8|1,928,643|1,931,102| |Approved|by the|Church|Council:|on ...1002.7..4.|ort22.5.2...|and|signed on|its:|behalf|by:.| |Rev David Owen|- Minister|CultNe?| |Mr|John|Spray|-|Treasurer|,| |Dated|-|hud|Feotuar, do 3| |The|notes|on|pages|16|to|22|form|part|of these|financial|statements|

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Mickleover Methodist Church

Notes to the Financial Statements for the year ended 31 August 2022

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), 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 concern.

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 2022 — 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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Notes to the Financial Statements

for the year ended 31 August 2022 - 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.

Unrestricted Restricted Total Funds Total Funds
2. INCOMING RESOURCES Funds Funds 2022 2021
£ £ £ £
2(a) Donated Income —Voluntary
Collections and regular giving 66,406 4,496 70,902 66,722
Gift Aid recoverable 18,162 - 18,162 14,409
Donations (National and Local) 11,875 - 11,875 10,865
Total Donations and Legacies 96,443 4,496 100,939 91,996
2(b) Gross income from events and activities
OtherIncome—Internal Organisation - 92,686 92,686 86,755
Fund Raising Events 2,170 $76 2,746 660
Lettings Income 22,910 - 22,910 12,263
Sundry and LegacyIncome 7,507 - 7,507 4,273
32,587 93,262 125,849 103,951
2(c) Investment Income
Bank interest 311 - 311 113
Investment Property Income 11,405 - 11,405 11,100
11,716 - 11,716 11,213
TOTALINCOMINGRESOURCES 140,746 97,758 238,504 207,160

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

.

Trustees aggregate giving for the year totalled £28,844 (2021: £29,625).

18

Mickleover Methodist Church

Notes to the Financial Statements for the year ended 31 August 2022 — continued

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||||||||| |---|---|---|---|---|---|---|---| |3.|RESOURCES|EXPENDED|Unrestricted|Restricted|Total|Funds|Total Funds| |Funds|Funds|2022|2021| |£|£|£|£| |3(a)|Giving| |Connexional|Funds|1,625|-|1,625|1,625| |1,625|-|1,625|1,625| |3(b)|Directly|related|to|the work|of the|Church| |Circuit|Assessments|59,060|-|59,060|59,060| |Internal|Organisation|-|17,289|17,289|18,215| |Insurance|and|Utilities|11,664|-|11,664|8,460| |Property|Expenditure|24,380|-|24,380|21,601| |Office|and|other|costs|14,803|5,120|19,923|11,462| |Salaries|23,823|69,889|93,712|89,641| |Depreciation|13,310|-|13,310|13,310| |147,040|92,298|239,338|221,749| |Total|Resources|Expended|148,665|92,298|240,963|223,374| |Other|costs|include|the|Independent|Examination|fee|of £750.| |4. TANGIBLE|FIXED ASSETS|Freehold|Land|Equipment|Total| |and|Buildings| |£|£|£| |Cost|At|1|September 2021|1,475,000|114,506|1,589,506| |Additions|-|-|-| |At31|August 2022|1,475,000|114,506|1,589,506| |Depreciation|At|1|September 2021|-|55,393|55,393| |Charge|for Year|-|13,310|13,310| |Disposals|-|-|-| |At 31|August 2022|-|68,703|68,703| |Net Book Value|At 31|August 2021|1,475,000|45,803|1,520,803| |At 31|August 2022|1,475,000|45,803|1,520,803|

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

The Church building and the cottage are currently insured for £3,169,082. 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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||||||| |---|---|---|---|---|---| |2022|2021| |£|£| |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.

19

Mickleover Methodist Church

Notes to the Financial Statements

for the year ended 31 August 2022 — 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|August|2016|undertaken|by Graham|Penny.|142,000|105,000|247,000|

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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.

7, Fund Details

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

Year Ended 31 August 2022

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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|1,596,597|118,261|125,462|(281)|1,589,115| |Provide|outreach|to|children|of| |Children &|Families|Worker|UR|Mickleover|9,484|9,030|18,795|281|-| |Funds|held|in|memory of loved| |Legacies|UR|ones|3,944|950|2,149|-|2,745| |Upkeep|of cottages|owned|by|the| |Cottages|Fund|R|Church|273,713|12,505|2,260|-|283,958| |Provide|relief to|the|poor|and| |External|Organisations|R|disadvantaged|-|4,496|4,496|-|-| |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|576|600|-|225| |Provision|of learning,| |development|and|care|for| |Mickleover Meth|Preschool|R|children|42,740|90,597|84,126|-|49,211| |Provides|care|and|support|to|the| |Women’s|Fellowship|R|women|of the Church|1,283|1,289|1,519|-|1,053| |Provide|fellowship|for|the| |Wesley|Guild|R|community|at|large|320|-|-|-|320| |Help|girls|become|followers|of| |10" Derby|Girls|Brigade|R|Jesus|Christ|2,713|800|1,532|-|1,981| |Total|Funds|1,931,102|238,504|240,963|-___|1,928,643| |Designated|Fund|Balance| |There|are|two|accounts|set|aside|for|specific|use,|these|are:-| |Legacies|Donation|2,745| |Cottages|(see note|6(a))|283,958| |286,704|

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Designated Fund Balance

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

20

Mickleover Methodist Church

Notes to the Financial Statements

for the year ended 31 August 2022 — continued

Year Ended 31 August 2021

Year Ended 31 August 2021
Fund Fund
Balances
Brought		 Balances
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 ofloved
Legacies UR ones 3,744 200 - - 3,944
Upkeep ofcottages owned by the
Cottages Fund R Church 265,020 12,087 3,394 - 273,713
Provide reliefto the poor and
External Organisations R disadvantaged - 3,754 3,754 - :
Reliefofpoverty and distress in
BenevolentFund R the poor 35 - - - 35
Provide care and support to the
Funtime R elderly - 24 - - 24
Support ofyoung children and
Little Micklers R their carers 249 - - - 249
Provision oflearning,
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 ofthe 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
8. ANALYSIS OF NET ASSETS BY FUND
Total Total
Unrestricted Restricted Funds Funds
Year Ended 31 August 2022 Funds Funds 2022 2021
£ £ £ £
Fixed Assets 1,767,803 - 1,767,803 1,781,113
Current Assets/Liabilities 108,016 52,824 160,840 149,989
Fund Balance 1,875,819 52,824 1,928,643 1,931,102
Year Ended 31 August2021 Total Total
Unrestricted Restricted Funds Funds
Funds Funds 2021 2020
£ £ £ £
Fixed Assets 1,781,113 - 1,781,113 1,794,423
Current Assets/Liabilities 102,625 47,364 149,989 152,893
FundBalance 1,883,738 47,364 1,931,102 1,947,316

21

vo

Mickleover Methodist Church

Notes to the Financial Statements

for the year ended 31 August 2022 — continued

9.STAFFCOSTS Total Total
2022 2021
£ £
Wages and salaries 90,844 86,813
Pension costs 2,868 2,828
93,712 89,641

The average number of staff employed during the year were 9 (2021: 9), 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 £2,868 (2021: £2,828) and there were no contributions outstanding at the year end.

Mickleover Methodist Church had 3 active members in the pension scheme at 31 August 2022.

11. FUTURE COMMITMENTS

Mickleover Methodist Church has entered into a rental commitment for a photocopier which expired in 2022; the quarterly rental charge was £358.

12. RELATED PARTY TRANSACTIONS

This Year

This Year
Payments to Payments to
related party related party
Description during theyear during theyear
Name ofrelated party Relationship oftransaction 2022 2021
£ £
JIMA Methodist Fund Donation 1,105 -
Fund for Supportof
Presbyters & Deacons		 Methodist Fund Donation 425 425
Fund forProperty Methodist Fund Donation 500 500
All We Can Partner Donation 1,445 1,335
LWPT Partner Donation 375 375
Methodist Homes Partner Donation 494 325
Action for Children Partner Donation 473 -
MethodistWomen in Britain Partner Donation 109 -
Total 4,926 2,960

There are no other related party transactions.

22