## **ORPINGTON METHODIST CHURCH** 

**Trustees’ Annual Report for the period 1 September 2020 to 31 August 2021** 

**Registered Charity Number: 1129331** 

## **Charity Principal Address:** 

Orpington Methodist Church, Sevenoaks Road, Orpington, Kent. BR6 9JH 

## **Managing Trustees:** 

Revd Terry Wright (Chair) Mr Christopher Price (Secretary) Mr Keith Hickey (Treasurer) 

Mrs Anne Barnes Mr Roger Lancaster Mrs Margaret Benskin Mrs Carolyn Licence Mrs Stephanie Boswell Mr Robin Licence Mrs Irene Cotterell Mrs June Meeks Mrs Elizabeth Dobb Mrs Dorrance Palmer Ms Margaret Donkin Mr John Pedley Mrs Lois East (Rtd: 17/09/2020) Miss Margaret Sanderson (Rtd: 17/09/2020) Mr Alan Gamwell Mr Charles Stewart Ms Janet Haley Mr Sujay Surji Mr Peter Hibble Mrs Elizabeth Weller Mrs Deborah Hickey Ms Angela Willis Mrs Alison Lancaster 

## **Custodian Trustee:** 

The Trustees for Methodist Church Purposes 

## **Bankers:** 

National Westminster Bank Central Finance Board of the Methodist Church 

## **Independent Examiner:** 

Keith Robinson 

## **Structure, Governance and Management** 

**Type of Governing Document:** Deed of Union (1932) and Methodist Church Act (1976) 

**How the Charity is Constituted:** Act of Parliament 

**Trustee Selection Method:** The Minister, Church Stewards, Treasurer, Pastoral Secretary, Church Council Secretary, up to 15 representative Church Members (elected annually), up to 15 additional persons appointed by the Council and a Circuit Steward. **Governance:** The appointment of Trustees and other officers follows the Constitutional Practice and Discipline of the Methodist Church (CPD). The primary governing body of Orpington Methodist Church, in accordance with CPD, is the Church Council. Members of the Council are the Trustees, and the Council is chaired by the Minister.  Church Council representatives and Church Stewards are elected at the Annual General Meeting.  All church members can attend this meeting and are entitled to vote, and 

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raise any issues for discussion.  The Trustees actively seek nominations for new Trustees who can represent all aspects of the Church community and its activities. 

## **Induction/Training:** 

There is a range of guidance produced by the Methodist Connexion All Trustees receive a copy of CC3, ‘The Essential Trustee: What You Need To Know’ 

## **Structure:** 

Part of the Orpington and Chislehurst Circuit Part of the London Methodist District Accountable to the Methodist Conference A member of Churches Together in Orpington 

## **Risks:** 

The Church has a Risk Management Policy and has a Risk Assessment Matrix Risks relating to Finance are considered by the Finance Committee Risks relating to Property are considered by the Property Committee Both Committees report to the Church Council (Board of Trustees) Professional advice is taken as necessary There is a regular review process 

The Church has adopted a Safeguarding Policy – covering Children and Vulnerable Adults – and has ensured all relevant members of the Church receive appropriate training which is an ongoing process 

## **Objectives and Activities** 

## **Objects of the Charity:** 

These are set out in the Methodist Church Act 1976 (Clause 4) – Advancement of Religion and any charitable purpose of the Methodist Church or church organisation 

## **Summary of Main Objectives:** 

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

- The Christian faith in accordance with the doctrinal standards and discipline of The Methodist Church 

- Any charitable purpose for the time being of any Connexional, District, Circuit and local or other organisation of the Methodist Church 

- Any charitable purpose for the time being of any society or institution subsidiary or ancillary to The Methodist Church 

- Any purpose for the time being of any charity being a charity subsidiary or ancillary to The Methodist Church 

## **Achievements and Performance** 

## **Summary of Main Achievements During the Year:** 

Orpington Methodist Church continues to provide a range of services and activities for the whole community. Worship takes place every Sunday with provision for other services at other times. Service styles vary according to age group and occasion. The last year has been marked by the restrictions of Covid 19 and the church has responded to the various challenges as they have arisen. While there were periods 

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where worship and indoor activities have ceased for periods of time, contact with the congregation and the wider church community has continued unabated. The year has been especially marked by individual acts of voluntary work in the community and increased pastoral activity especially to those living on their own and isolated. 2020/21 saw a marked increase in community funeral provision and pastoral care of the bereaved as a direct result of the pandemic. 

The church has maintained contact with many of its user groups, uniformed groups and self-help groups during the times when they were not permitted to meet and the use of video meeting platforms as well as regular news bulletins have helped maintain our church and community links. 

During the Year the redevelopment project continued and building work was completed in June. This has been a significant undertaking by a small group of Church volunteers who have monitored, and liaised with the building contractors as well as church building user groups to ensure progress was kept as close as possible to timescales and with minimum overall disruption. One example of this was the Church being able to facilitate The Montessori School at a time when other school provision had been withdrawn in the community. We are very grateful to the Garfield Weston Foundation, The Charles Jacob Trust, the Trustees for Methodist Church Purposes, Methodist Insurance, the Methodist Church, the London District of the Methodist Church and the Orpington and Chislehurst Circuit of the Methodist Church for their support for the project. 

The church continues to explore how to make the best use of its facilities and work with user groups and community organisations. Hospitality is at the heart of our work and this is expressed to individuals and groups in pastoral care and the provision of amenities. The LINK Café was successfully launched in July and has been visited by new members. The Church continues to build relationships and encourage partnership with all user groups whose programs benefit the local community. Such programs include those that promote wellbeing, spiritual and mental health, children’s work and charitable groups. Most recently we have been able to continue to facilitate a bereavement help-point. 

Alongside The Minister Rev Terry Wright and a part-time administrator, who also serves as a lettings manager and convener of children’s work, we also employ a part-time cleaner who has enabled us to meet additional sanitary standards placed upon us by government legislation.  In the main The Church functions and achieves its mission through the many people who give of their time, money and energy to enable a diverse programme to be offered. The Church has 125 members (2020: 125) and around 60 volunteers (2020: 60) many of whom are also Church members. The church is supported by the Orpington and Chislehurst Methodist Circuit, the London District and the wider Methodist Connexion. We are thankful for the support of all those around us in helping us fulfil our responsibilities and realise our vision. 

## **Public Benefit:** 

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’. 

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## **Financial Review** 

## **Reserves Policy:** 

Within Unrestricted Reserves there are 3 main funds: 

Society Fund and Property Fund £95,500 (2020: £108,926): We aim to ideally hold in reserve sufficient money to cover six months expenditure plus £20,000 as a capital contingency.  The Church is dependent on voluntary donations and hall lettings to cover the costs of its ministerial team, property costs and general expenses.  As these income and property costs can be volatile, this level of reserves is considered prudent to manage the day to day running of the Church in an organised manner and give time for thorough review if any difficult decisions have to be made. Six months expenditure plus £20,000 is £70,692 so at £95,500 reserves stand at nine months plus £20,000 

Legacies Fund £128,679 (2020: £202,865): These are monies received through legacies which the Church Council will allocate to the work of the Church as it deems appropriate. During the year legacies of £2,000 (2020: £168,109) were received. During the year the Church Council decided to spend £73,078 from the Legacy Fund on repairs to the Church roofs and the new The LINK Café. Over the next year the Church will consider how to utilise the balance of Legacies to support its work in the local community. 

Designated Funds £323,638 (2020: £338,854): This is made up of 2 separate funds; £320,424 is invested in fixed assets for Building Redevelopment Project; £3,214 is designated for the development of a Peace Garden in the Church grounds.  During the year 2 designated funds were fully utilised; the Lost Income Fund and the Sound & Vision Fund. 

Within Restricted Reserves there are 3 funds: 

Internal Organisations £16,558 (2020: £15,472): these are balances held by separate organisations within the Church who report to the Church Council and are restricted to the use of that organisation. 

Peace Garden £1,150 (2020: £0) these are funds given for the express purpose of developing a Peace Garden in the Church grounds. 

Organ Fund £400 (2020:£480): these are funds given for the express purpose to develop expertise in playing the Church organ. 

Two restricted funds were fully utilised during the year; the Sound & Vision Fund and the Café fund. 

Within Endowed Reserves there are 2 funds: 

Property £1,133,590 (2020: £1,141,261) which represents funds used in the purchasing of land and buildings for the Church’s general purposes. 

Building Development Fund £688,743 (2020: £690,375): This project, which was completed in June 2021, was to develop the potential of the Church building to create a flexible space in the Church, bringing the opportunity to tell the story of our faith in exciting new ways. A new bold entrance allows immediate access and visibility into a renewed church. There will be much greater opportunities for worship, events and exhibitions and other activities to serve and involve the community. 

The Church’s Free Reserves are its General Fund £224,179 (2020: £311,611) 

## **Financial Overview:** 

The Church’s income was £80,177 (2020: £689,449); the main reasons for this material decrease were that in 2020 the Church received grants totalling £409,000 towards the 

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building Development Project and the final distribution of a large individual legacy of £168,109. However, underlying income was lower than usual, specifically due to reductions in Loose Cash received and Hire of Premises due to the Covid 19 pandemic. The Church’s expenditure was £191,455 (2020: £112,671), the principal components of which were the Orpington and Chislehurst Circuit assessment and repairs, maintenance, utilities and insurance costs on the Church Buildings. The main reason for the increase in expenditure in 2021 was expenditure on roof repairs of £64,075 and on the Community Hub Café of £10,253. The overall reduction in funds to £2,388,258 (2020: £2,499,536) was mainly due the roof repairs, setting up the café, and lower than usual income from cash collections and premise hire. 

## **Plans for Future Periods** 

The Trustees intend to maintain the present activities of the Church, as described elsewhere, with a focus on worship, community service and partnership with other churches and agencies in the local community. This will be strengthened by the development of our buildings to support this activity. 

In the next twelve months we are seeking further development and capacity building in our Community Hub and The LINK Café. This will involve the recruitment and training of new volunteers and providing opportunities for volunteering among those with mental health issues, rehabilitation and for those seeking life skill development.  The Hub will also begin its ‘signposting’ service and provisional Listening ear service. 

In the wider church we are looking to strengthen links between the church and users of the building not least with the Montessori school.  We will also re-establish some of our community provision lapsed during Covid 19 such as the toddler group. 

We have identified a growing need among our existing volunteers and Church members for training in all aspects of delivering a good service both for worship and community activities and courses on listening skills, safeguarding and church leadership will be rolled out in the year. 

## **Covid 19** 

The Church entered lockdown early after the Sunday service on the 15[th] March 2020. Financially this has meant a loss of income from offertory and outside hire of the premises.  Having followed a full programme for opening up the premises and undertaking Covid 19 risk assessments the Church opened for limited services and the premises opened for some outside organisations to hire in July 2020.  During 2020/21 Income was down on previous years due to much lower attendances at Sunday Services and much lower premises hire. It is only in September 2021 that the congregation and the hire of the premises approached their pre lockdown levels. 

The fall in the Church’s free reserves of £87,432 would have been £104,432 if the Church hadn’t previously set up a designated Lost Income Fund of £17,000.  £73,078 was expended from the Legacies fund on roof repairs and The LINK Café. So there was an underlying operating deficit of £38,200.  The Church has managed to keep within its Reserves Policy and has set a conservative budget for 2021/22 with the expectation that the Church will still be within its Reserves Policy at the end of the year. Also there 

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is £128,679 in the Legacies Fund; some of this will be used to give a voluntary donation to support the Methodist Church’s Pension Fund Deficit and work has now started in building a business plan for the development of the Community Hub which will be funded through the Legacies fund.  However, commitment to the later will be managed until it is clearer how the Church’s finances will hold up as the local community returns to Church and to hiring the premises. 

## **Declaration:** 

The trustees declare that they have approved the trustees’ report above: 

Signature: 


Revd. Terry Wright Chair 

Signature: 


Mr Christopher Price Church Secretary 

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## **Responsibilities of the Trustees** 

The charity's trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales requires 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 of the charity for that period. ln preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. The trustees 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. 

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## **Independent Examiners Report to the Trustees of Orpington Methodist Church** 

## **Year Ended 31 August 2021** 

I report on the accounts of the charity for the year ended 31 August 2021 which are set out on pages 9 to 24. 

## **Respective Responsibilities of Trustees and Examiner** 

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. 

It is my responsibility to: 

- examine the accounts under section 145 of the 2011 Act: 

- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and 

- to state whether particular matters have come to my attention. 

## **Basis of Independent Examiner’s Report** 

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

## **Independent Examiner’s Statement** 

ln connection with my examination, no matter has come to my attention: 

- (1) which gives me reasonable cause to believe that in any material respect the requirements 

   - to keep accounting records in accordance with section 130 of the 2011 Act; and 

   - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act 

have not been met; or 

- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 


Keith Robinson FCA Chartered Accountant Willowcroft, Brasted Chart, Westerham, Kent. TN16 1LX 

25[th] November 2021 

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## **Orpington Methodist Church Statement of Financial Activities (SOFA) for the year ended 31 August 2021** 

|**Note**<br>**Income**<br>Offerings<br>Donations<br>Gift aid<br>Interest<br>4<br>Internal organisations<br>15<br>Other<br>**Total income**<br>2<br>**Expenditure**<br>Circuit assessment<br>Grants & donations<br>Property maintenance<br>Insurance, utilities etc.<br>Depreciation<br>Office expenses<br>Other<br>Internal organisations<br>15<br>**Total expenditure**<br>3<br>**Net**<br>**income/(expenditure)**<br>**5**<br>Transfers between<br>funds<br>**Net movement in**<br>**funds**<br>Total funds brought<br>forward<br>**Total funds carried**<br>**forward**|**General**<br>**Fund**<br>**Unrestricted**<br>**Designated**<br>**Funds**<br>**Unrestricted**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**2020-2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>39,047<br>**39,047**<br>2,260<br>2,583<br>1,328<br>**6,171**<br>7,662<br>454<br>250<br>**8,366**<br>1,251<br>520<br>**1,771**<br>1,680<br>**1,680**<br>23,142<br>**23,142**|
|---|---|
||**73,362**<br>**0**<br>**4,717**<br>**2,098**<br>**80,177**<br>44,800<br>**44,800**<br>2,750<br>**2,750**<br>101,759<br>1,887<br>**103,646**<br>13,159<br>**13,159**<br>1,430<br>12,963<br>**14,393**<br>10,480<br>**10,480**<br>1,920<br>**1,920**<br>307<br>**307**|
||**174,868**<br>**1,430**<br>**2,194**<br>**12,963**<br>**191,455**<br>**(101,506)**<br>**(1,430)**<br>**2,523**<br>**(10,865)**<br>**(111,278)**<br>14,074<br>(13,786)<br>(1,850)<br>1,562<br>**0**|
||**(87,432)**<br>**(15,216)**<br>**673**<br>**(9,303)**<br>**(111,278)**<br>311,611<br>338,854<br>17,435<br>1,831,636<br>**2,499,536**|
||**224,179**<br>**323,638**<br>**18,108**<br>**1,822,333**<br>**2,388,258**|



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## **Orpington Methodist Church Statement of Financial Activities (SOFA) for the year ended 31 August 2020** 

|**Note**<br>**Income**<br>Offerings<br>Donations<br>Gift aid<br>Interest<br>4<br>Internal organisations<br>15<br>Other<br>**Total income**<br>2<br>**Expenditure**<br>Circuit assessment<br>Grants & donations<br>Property maintenance<br>Insurance, utilities etc.<br>Depreciation<br>Office expenses<br>Other<br>Internal organisations<br>15<br>**Total expenditure**<br>3<br>**Net**<br>**income/(expenditure)**<br>**5**<br>Transfers between<br>funds<br>**Net movement in**<br>**funds**<br>Total funds brought<br>forward<br>**Total funds carried**<br>**forward**|**General**<br>**Fund**<br>**Unrestricted**<br>**Designated**<br>**Funds**<br>**Unrestricted**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**2019-2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>41,761<br>**41,761**<br>172,306<br>413,021<br>**585,327**<br>9,045<br>1,102<br>**10,147**<br>4,294<br>1,347<br>**5,641**<br>9,370<br>**9,370**<br>37,203<br>**37,203**|
|---|---|
||**264,608**<br>**9,370**<br>**415,471**<br>**689,449**<br>44,800<br>**44,800**<br>5,783<br>**5,783**<br>14,339<br>**14,339**<br>17,199<br>**17,199**<br>9,898<br>**9,898**<br>11,009<br>**11,009**<br>2,893<br>80<br>**2,973**<br>6,670<br>**6,670**|
||**96,023**<br>**6,750**<br>**9,898**<br>**112,671**<br>**168,586**<br>**2,620**<br>**405,572**<br>**576,778**<br>(77,959)<br>83,000<br>(5,041)<br>0<br>**0**|
||**90,627**<br>**83,000**<br>**(2,421)**<br>**405,572**<br>**576,778**<br>220,984<br>255,854<br>19,856<br>1,426,064<br>**1,922,758**|
||**311,611**<br>**338,854**<br>**17,435**<br>**1,831,636**<br>**2,499,536**|



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## **Orpington Methodist Church Balance Sheet as at 31 August 2021** 

|**Fixed Assets**<br>Church building<br>and other<br>property<br>**Total Fixed**<br>**Assets**<br>**Current Assets**<br>Debtors and<br>prepayments<br>Investments with<br>TMCP<br>Central Finance<br>Board deposits<br>Cash at bank and<br>in hand<br>**Total Current**<br>**Assets**<br>**Current**<br>**Liabilities**<br>Creditors (due in<br>under 1 year)<br>**Total Current**<br>**Liabilities**<br>**Net Current**<br>**Assets**<br>**Net Assets**<br>**Funds of the**<br>**Church**<br>General fund<br>Designated funds<br>**Total**<br>**unrestricted**<br>**funds**<br>Restricted funds<br>Endowment funds<br>**Total Funds**|**Note**<br>**7**|**General**<br>**Fund**<br>**Unrestricted**<br>**Designated**<br>**Funds**<br>**Unrestricted**<br>**£**<br>**£**<br>**320,230**|**Restricted**<br>**Funds**<br>**£**|**Endowment**<br>**Funds**<br>**£**<br>1,822,333|**Totals**<br>**2021**<br>**Totals**<br>**2020**<br>**£**<br>**£**<br>2,142,563<br>1,370,912|
|---|---|---|---|---|---|
||**9**<br>**8**<br>**8**<br>**8**<br>**10**<br>11,12|**320,230**<br>6,322<br>112,173<br>78,657<br>64,349<br>32,164|7,023<br>11,085|**1,822,333**|**2,142,563**<br>**1,370,912**<br>6,322<br>5,579<br>112,173<br>202,685<br>150,029<br>884,298<br>43,249<br>42,610|
|||**229,316**<br>**64,349**<br>5,137<br>60,941|**18,108**||**311,773**<br>**1,135,172**<br>66,078<br>6,548|
|||**5,137**<br>**60,941**|||**66,078**<br>**6,548**|
|||**224,179**<br>**3,408**|**18,108**||**245,695**<br>**1,128,624**|
|||**224,179**<br>**323,638**<br>224,179<br>323,638<br>**224,179**<br>**323,638**|**18,108**<br>18,108|**1,822,333**<br>1,822,333|**2,388,258**<br>**2,499,536**<br>224,179<br>311,611<br>323,638<br>338,854<br>**547,817**<br>**650,465**<br>18,108<br>17,435<br>1,822,333<br>1,831,636|
|||**224,179**<br>**323,638**|**18,108**|**1,822,333**|**2,388,258**<br>**2,499,536**|



Approved by the Board of Trustees on 25[th] November 2021 and signed on their behalf by: 

Keith Hickey, Treasurer 

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Notes to the financial statements Year Ended 31 August 2021 

## 1. Accounting Policies 

(a) Basis of preparation and assessment of going concern 

The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. 

Land and Buildings owned on the 1[st] September 2017 are valued at deemed cost as permitted by FRS102 when accounts are first prepared under the transitional arrangements.  For land a market value was made by Ibbett Mosely and for fixed assets the discounted replacement cost (DRC) was calculated. 

On the basis that there is no evidence of a permanent endowment, it is assumed that the money donated to build the premises was on the expectation of their long term use and so the fair value of the land, the buildings and the organ on a DRC basis is taken as their deemed historical cost under FRS102, and treated as belonging to an expendable endowment for the Church’s general purposes. 

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. 

## (b) Fixed assets 

All fixed assets costing over £5,000 are capitalised. 

## (c) Depreciation 

Land Not Depreciated Buildings in the course of Construction Not Depreciated Buildings 75 years Organ 75 years Furniture and Fixtures 5 years 

These expected useful lives, which represent a standard/initial assessment for each asset-class, have been reviewed against current assumptions of each asset's likely further useful life. No significant changes are considered necessary at this time. 

## (d) Income recognition 

Income is brought into account when there is entitlement and the amount is reliably measureable once it is more likely than not that the economic benefit of the income will be forthcoming. 

Individual amounts categorised as other income in the SOFA will be shown separately if they are considered material 

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## (e) Expenditure 

This is recognised when a liability is incurred, or a constructive obligation arises, where the amount is reliably measureable and it is considered more likely than not that there will be an outflow of economic benefit. 

## (f) VAT 

Since the church is not VAT registered, all input VAT is charged with the expense to which it refers. 

(g) Receivables and Payables, Bank and Cash (Basic Financial Instruments) Debtors are stated at the amounts owed to the Church or prepaid.  Creditors are initially recognised at settlement amount after trade discounts, where normal credit terms apply, or the amount advanced to the Church. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid.  The liquid funds of bank balances and deposit fund balances are shown at their realisable values. Monetary Assets are held either by the Trustees for Methodist Purposes (TMCP) as custodian trustees if received through a legacy of greater than £20,000, or as Methodist Central Finance Board Deposits or in local bank accounts. 

## (h) Funds 

The funds held constitute General Funds held for any purpose of the Church which are unrestricted.  Restricted Funds are held for a narrower purpose. Where the Church holds money that may not be spent and must be retained (as capital) to generate an income the money or assets to be retained are classified as an Endowment Fund.  The capital will be shown in the balance sheet in the column for endowment funds.  The income may be restricted or unrestricted depending upon the terms of the endowment. Details of each material fund are disclosed in notes11 and12. 

## (i) Monies raised for Other Organisations 

From time to time the Church has appeals for other Charities; for example at Lent, Harvest and Christmas.  As the Church is acting as an agent the funds received are not recognised as an asset because the funds are not within the Church’s control. Consequently, the receipt of funds where the Church is acting as an agent are not recognised as income, nor is its distribution recognised as expenditure.  Details of these funds are shown in Note 14. 

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## **2. Income analysis** 

|**Offerings**<br>Loose cash<br>Stewardship<br>**Total Offerings**<br>**Donations**<br>Legacies<br>Building development<br>Café & peace garden<br>Church organisations<br>Other<br>**Total Donations**<br>**Gift Aid**<br>**Interest**<br>**Internal organisations**<br>**Other Income**<br>Hire of premises<br>Other<br>**Total Other Income**<br>**Total Income**<br>**Offerings**<br>Loose cash<br>Stewardship<br>**Total Offerings**<br>**Donations**<br>Legacies<br>Building development<br>Church organisations<br>Other<br>**Total Donations**<br>**Gift Aid**<br>**Interest**<br>**Internal organisations**<br>**Other Income**<br>Hire of premises<br>Other<br>**Total Other Income**<br>**Total Income**|**General**<br>**Fund**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**Funds**<br>**2021**<br>**2021**<br>**2021**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>811<br>811<br>38,236<br>38,236|
|---|---|
||**39,047**<br>**0**<br>**0**<br>**0**<br>**39,047**<br>2000<br>2,000<br>1,328<br>1,328<br>2,583<br>2,583<br>200<br>200<br>60<br>60|
||**2,260**<br>**0**<br>**2,583**<br>**1,328**<br>**6,171**<br>**7,662**<br>**454**<br>**250**<br>**8,366**<br>**1,251**<br>**520**<br>**1,771**<br>**1,680**<br>**1,680**<br>22,340<br>22,340<br>802<br>802|
||**23,142**<br>**0**<br>**0**<br>**0**<br>**23,142**|
||**73,362**<br>**0**<br>**4,717**<br>**2,098**<br>**80,177**<br>**General**<br>**Fund**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**Funds**<br>**2020**<br>**2020**<br>**2020**<br>**2020**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>3,693<br>3,693<br>38,068<br>38,068|
||**41,761**<br>**0**<br>**0**<br>**0**<br>**41,761**<br>168,109<br>168,109<br>413,021<br>413,021<br>2,100<br>2,100<br>2,097<br>2,097|
||**172,306**<br>**0**<br>**0**<br>**413,021**<br>**585,327**<br>**9,045**<br>**1,102**<br>**10,147**<br>**4,294**<br>**1,347**<br>**5,641**<br>**9,370**<br>**9,370**<br>36,414<br>36,414<br>789<br>789|
||**37,203**<br>**0**<br>**0**<br>**0**<br>**37,203**|
||**264,609**<br>**0**<br>**9,370**<br>**415,470**<br>**689,449**|



Orpington Methodist Church Annual Report and Accounts 2021 

Page 14 



## **3. Expenditure analysis** 

|Circuit assessment<br>Grants and donations<br>**Property Maintenance**<br>Caretaker<br>Café & peace garden<br>Cleaning<br>Repairs & maintenance<br>**Total Property Maintenance**<br>**Insurance, Utilities, etc.**<br>Insurance<br>Utilities<br>**Total Insurance, Utilities, etc.**<br>Depreciation<br>Office expenditure<br>Other expenditure<br>Internal organisations<br>**Total Expenditure**<br>Circuit assessment<br>Grants and donations<br>**Property Maintenance**<br>Caretaker<br>Cleaning<br>Repairs & maintenance<br>**Total Property Maintenance**<br>**Insurance, Utilities, etc.**<br>Insurance<br>Utilities<br>**Total Insurance, utilities, etc.**<br>Depreciation<br>Office expenditure<br>Other expenditure<br>Internal organisations<br>**Total Expenditure**|**General**<br>**Fund**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**Funds**<br>**2021**<br>**2021**<br>**2021**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>44,800<br>44,800<br>2,750<br>2,750<br>6,566<br>6,566<br>1,887<br>1,887<br>202<br>202<br>94,991<br>94,991|
|---|---|
||**101,759**<br>**0**<br>**1,887**<br>**0**<br>**103,646**<br>5,623<br>5,623<br>7,536<br>7,536|
||**13,159**<br>**0**<br>**0**<br>**0**<br>**13,159**<br>1,430<br>12,963<br>14,393<br>10,480<br>10,480<br>1,920<br>1,920<br>307<br>307|
||**174,868**<br>**1,430**<br>**2,194**<br>**12,963**<br>**191,455**<br>**General**<br>**Fund**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**Total**<br>**Funds**<br>**2020**<br>**2020**<br>**2020**<br>**2020**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>44,800<br>44,800<br>5,783<br>5,783<br>8,044<br>8,044<br>1,260<br>1,260<br>5,035<br>5,035|
||**14,338**<br>**0**<br>**0**<br>**0**<br>**14,339**<br>5,228<br>5,228<br>11,971<br>11,971|
||**17,199**<br>**0**<br>**0**<br>**0**<br>**17,199**<br>9,898<br>9,898<br>11,009<br>11,009<br>2,893<br>80<br>2,973<br>6,670<br>6,670|
||**96,023**<br>**0**<br>**6,750**<br>**9,898**<br>**112,671**|



Orpington Methodist Church Annual Report and Accounts 2021 

Page 15 



## **4. Interest income** 

||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|TMCP|691|2,591|
|Central Finance Board|<br>1,080|3,050|
|**Total**|**1,771**|**5,641**|
|TMCP<br>|Trustees Interest Fund|Interest Rate @ 31/08/21  0.16%|
|Central Finance Board|Reserve Account|Interest Rate @ 31/08/21  0.01%|



## **5. Net income/(Expenditure** 

|These are stated after charging|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Depreciation|14,393|9,898|
|Independent Examiner’s Remuneration|0|0|



## **6. Trustees  and employee information** 

## **a) Trustee information** 

No remuneration was paid to or waived by any Trustee during the year (2020:£nil). No expenses were reimbursed to Trustees during the year (2020: £nil) 

The Church has insurance with Methodist Insurance with a total cost of £5,623 (2020: £5,228).  This premium includes indemnity insurance for the Trustees. 

## **b) Employee information** 

|Employee numbers|||
|---|---|---|
||**2021**|**2020**|
|Number of staff|2|3|
|Full time equivalent|0.59|0.67|
|Employee costs|||
||**2021**|**2020**|
|||**£**|
|Salaries|14,802|16,062|
|Social security|||
|Pensions|||
|**Total employee costs**|**14,802**|**16,062**|



No employee received remuneration of more than £60 _,_ 000 during the year (2020:£nil) 

The charity considers its key management personnel to be the Trustees and the Minister.  The Trustees give their time freely and the Minister’s salary is paid by the Circuit, so there are no costs of key management personnel to report (2020: £nil) 

Orpington Methodist Church Annual Report and Accounts 2021 

Page 16 



## **7. Tangible fixed assets** 

||**Land**|**Buildings**|**Organ**|**Furniture**|**Buildings in**|**Total**|
|---|---|---|---|---|---|---|
|||||**&**|**the Course of**||
|||||**Fixtures**|**Construction**||
||**£**|**£**|**£**|**£**||**£**|
|**Cost**|||||||
|At 1 September 2020|589,000|513,191|62,080|<br>11,138|225,197|1,400,606|
|Additions||786,044||||786,044|
|Disposals|||||||
|Transfers||225,197|||(225,197)||
|**At 31 August 2021**|**589,000**|**1,524,432**|**62,080**|<br>**11,138**|**0**|**2,186,650**|
|**Depreciation**|||||||
|At 1 September 2020|0|20,528|2,484|<br>6,682||29,694|
|Charged in the year||11,337|828|<br>2,228||14,393|
|Disposals|||||||
|**At 31 August 2021**|**0**|**31,865**|**3,312**|<br>**8,910**|**0**|**44,087**|
|**Net Book Value**|||||||
|At 1 September 2020|589,000|492,663|59,596|<br>4,456|225,197|1,370,912|
|(restated)|||||||
|**At 31 August 2021**|**589,000**|**1,492,567**|**58,768**|<br>**2,228**|**0**|**2,142,563**|
|**8.**<br>**Cash and bank**|||||||
|||**2021**|**2020**||||
|||**£**||**£**|||
|TMCP||112,173|202,685||||
|Central Finance Board||150,029|884,298||||
|Bank accounts||42,239||41,350|||
|Cash||1,010||1,260|||
|**Total**||**305,451**|**1,129,593**||||
|**9.**<br>**Debtors and prepayments**|||||||
|||**2021**|**2020**||||
|||**£**||**£**|||
|Gift aid||2,923||2,997|||
|Hire of premises||1,196||486|||
|Other prepayments||2,203||2,096|||
|**Total**||**6,322**||**5,579**|||
|**10. Creditors (due in**|**under 1 year)**||||||
|||**2021**|**2020**||||
|||**£**||**£**|||
|Utilities||319||3,324|||
|Building Development||60,941||3,224|||
|Other||4,818||0|||
|**Total**||**66,078**||**6,548**|||



Orpington Methodist Church Annual Report and Accounts 2021 

Page 17 



## **11. Funds** 

|**Endowed Funds**<br>Property<br>Building Development<br>**Total**<br>**Restricted Funds**<br>Sound & Vision<br>Internal Organisations<br>Peace Garden<br>Café<br>Organ<br>**Total**<br>**Designated Funds**<br>Sound & Vision<br>Peace Garden<br>Lost Income Fund<br>Building Development<br>**Total**<br>**General Funds**<br>Property<br>Society<br>Legacies<br>**Total**<br>**Total Unrestricted**<br>**Funds**<br>**Total Funds**|**Balance at**<br>**31 August**<br>**2020**<br>**Incoming**<br>**Resources**<br>**£**<br>**£**<br>1,141,261<br>690,375<br>2,098|**Outgoing**<br>**Resources**<br>**£**<br>7,671<br>5,292|**Transfers**<br>**Balance at**<br>**31 August**<br>**2021**<br>**£**<br>**£**<br>1,133,590<br>1,562<br>688,743|
|---|---|---|---|
||**1,831,636**<br>**2,098**<br>1,563<br>15,472<br>1,680<br>0<br>1,787<br>0<br>1,250<br>400|**12,963**<br>307<br>637<br>1,250|**1,562**<br>**1,822,333**<br>(1,563)<br>0<br>(287)<br>16,558<br>1,150<br>0<br>400|
||**17,435**<br>**4,717**<br>2,500<br>0<br>17,000<br>319,354|**2,194**<br>1,430|**(1,850)**<br>**18,108**<br>(2,500)<br>0<br>3,214<br>3,214<br>(17,000)<br>0<br>2,500<br>320,424|
||**338,854**<br>**0**<br>50,573<br>22,596<br>58,353<br>48,074<br>202,685<br>2,692|**1,430**<br>43,191<br>58,193<br>73,484|**(13,786)**<br>**323,638**<br>12,200<br>42,178<br>5,088<br>53,322<br>(3,214)<br>128,679|
||**311,611**<br>**73,362**<br>**650,465**<br>**73,362**|**174,868**<br>**176,298**|**14,074**<br>**224,179**<br>**288**<br>**547,817**|
||**2,499,536**<br>**80,177**|**191,455**|**0**<br>**2,388,258**|



The designated fund for the peace garden is expected to be spent during 2021/22 

The designated fund for building development has been capitalised and will be depreciated over 75 years in accordance with the accounting policy 

Orpington Methodist Church Annual Report and Accounts 2021 

Page 18 



## **11. Funds (continued)** 

|**Endowed Funds**<br>Property<br>Building Development<br>**Total**<br>**Restricted Funds**<br>Sound & Visions<br>Internal Organisations<br>Organ<br>**Total**<br>**Designated Funds**<br>Sound & Vision<br>Lost Income Fund<br>Building Development<br>**Total**<br>**General Funds**<br>Property<br>Society<br>Legacies<br>**Total**<br>**Total Unrestricted**<br>**Funds**<br>**Total Funds**|**Balance at**<br>**31 August**<br>**2019**<br>**Incoming**<br>**Resources**<br>**£**<br>**£**<br>1,148,931<br>277,133<br>415,470|**Outgoing**<br>**Resources**<br>**£**<br>7,670<br>2,228|**Transfers**<br>**Balance at**<br>**31 August**<br>**2020**<br>**£**<br>**£**<br>1,141,261<br>690,375|
|---|---|---|---|
||**1,426,064**<br>**415,470**<br>1,563<br>17,813<br>9,370<br>480|**9,898**<br>6,670<br>80|**0**<br>**1,831,636**<br>1,563<br>(5,041)<br>15,472<br>400|
||**19,856**<br>**9,370**<br>2,500<br>17,000<br>236,354|**6,750**|**(5,041)**<br>**17,435**<br>2,500<br>17,000<br>83,000<br>319,354|
||**255,854**<br>**0**<br>49,323<br>38,810<br>56,285<br>55,099<br>115,376<br>170,700|**0**<br>33,297<br>62,335<br>391|**83,000**<br>**338,854**<br>(4,263)<br>50,573<br>9,304<br>58,353<br>(83,000)<br>202,685|
||**220,984**<br>**264,609**<br>**476,838**<br>**264,609**|**96,023**<br>**96,023**|**(77,959)**<br>**311,611**<br>**5,041**<br>**650,465**|
||**1,922,758**<br>**689,649**|**112,871**|**0**<br>**2,499,536**|



Orpington Methodist Church Annual Report and Accounts 2021 

Page 19 



## **11. Funds (continued)** 

**Endowed Funds** Property Represents funds used in purchasing land and buildings for the Church’s general purposes. Building Development Represents funds donated to the Church with the express wish to fund the building development project. **Restricted Funds** Sound & Vision Represents funds given expressly for the purposes of improving the sound and vision in the Church. Internal Organisations Represents funds held in the various Church organisations to carry out their activities. (Note 15). Peace Garden Represents funds given expressly to develop a Peace Garden in the grounds of the Church. Café Represents funds given expressly to construct a Café in the New Concourse. Organ Represents funds given expressly to develop expertise in playing the Church organ. **Designated Funds** Sound & Vision Represents funds designated from general funds towards improving sound and vision in the Church. Peace Garden Represents funds designated from general funds to develop a Peace Garden in the grounds of the Church. Lost Income Fund Represents funds allocated to cover any loss of income for premises hire during the redevelopment project. Building Development Represents funds designated from general funds towards the building development project. **General Funds** Property Represents undesignated monies retained to provide working capital to enable the Church to run and maintain its buildings and equipment. Society Represents undesignated monies retained to provide working capital to enable the Church to carry out its activities. Legacies Represents undesignated monies received from legacies. 

£12,963 (2020: £9,898) was expended from endowed funds representing the conversion of expendable endowment trust capital into income to the extent needed to offset the year’s expenditure charge in the SOFA as depreciation of the functional fixed assets belonging to these endowments. 

## **Fund Transfers** 

During the year ended 31 August 2021 the following further fund transfers were made: 

- £17,000 (2020: £0) from Designated Lost Income Fund to the General Fund 

- £3,214 (2020: £0) from the General Fund to Designated Peace Garden Fund 

- £2,500 (2020: £0) from the Designated Sound & Vision Fund to the Designated Building Development Fund 

- £1,563 (2020: £0) from the Restricted Sound & Vision Fund to the Endowed Building Development Fund 

- £288 (2020: £5,041) from the Internal Organisations Fund to the General Fund 

Orpington Methodist Church Annual Report and Accounts 2021 

Page 20 



- During the year ended 31 August 2020 the following fund transfers were made: 

   - £83,000 (2019: £186,654) from the General Fund to the Designated Building Development Fund 

   - £5,041 (2019: £2,936) from the Internal Organisations Fund to the General Fund 

## **12. Analysis of net assets by funds** 

|**2021**<br>Tangible fixed assets<br>Work in progress<br>Cash and bank<br>Other current assets<br>Current liabilities<br>Funds at 31 August 2021<br>**2020**<br>Tangible fixed assets<br>Work in progress<br>Cash and bank<br>Other current assets<br>Current liabilities<br>Funds at 31 August 2020|**General Designated**<br>**Restricted**<br>**Endowed**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>320,230<br>1,822,333<br>2,142,563<br>0<br>222,994<br>64,349<br>18,108<br>305,451<br>6,322<br>6,322<br>5,137<br>60,941<br>66,078|
|---|---|
||224,179<br>323,638<br>18,108<br>1,822,333<br>2,388,258<br>**General Designated**<br>**Restricted**<br>**Endowed**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>1,145,715<br>1,145,715<br>225,197<br>225,197<br>309,356<br>338,854<br>17,435<br>463,948<br>1,129,593<br>5,579<br>5,579<br>3,324<br>3,224<br>6,548|
||311,611<br>338,854<br>17,435<br>1,831,636<br>2,499,536|



Orpington Methodist Church Annual Report and Accounts 2021 

Page 21 



## **13. Taxation** 

The Church is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the Church is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.  No tax charge arose in this period. 

## **14. Agent funds** 

At times during the year and specifically at Lent, Harvest and Christmas, the Church raises monies for specific Charities, and passes the monies raised directly to them.  As the Church is acting as those Charities Agents it does not include the amounts donated in its income and expenditure.  The amounts concerned are detailed below 

|Action for Children<br>Methodist Homes<br>Living On<br>Friends of Matthew Rusike<br>Street Child<br>Porchlight<br>Bromley Borough Foodbank<br>The Salvation Army<br>**Total**|**2021**<br>**£**<br>64<br>98<br>65<br>65<br>**292**|**2020**<br>**£**<br>339<br>350<br>292<br>20<br>956<br>10|
|---|---|---|
|||**1,763**|



Orpington Methodist Church Annual Report and Accounts 2021 

Page 22 



## **15. Internal organisations** 

|Sparklers<br>Families Together<br>Junior Youth Club<br>Senior Youth Club<br>Wednesday Circle<br>Amateur Dramatics<br>Voluntary Youth<br>Project<br>Art Club<br>**Total**<br>Sparklers<br>Families Together<br>Junior Youth Club<br>Senior Youth Club<br>Wednesday Circle<br>Amateur Dramatics<br>Luncheon Club<br>Voluntary Youth<br>Project<br>Art Club<br>**Total**|**Balance at**<br>**31 August**<br>**2020**<br>**Incoming**<br>**Resources**<br>**Outgoing**<br>**Resources**<br>**Transfers Balance at**<br>**31 August**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>697<br>(200)<br>497<br>1,592<br>1,592<br>2,363<br>2,363<br>1,262<br>27<br>1,235<br>258<br>258<br>1,996<br>275<br>1,721<br>6,774<br>1,502<br>(87)<br>8,189<br>530<br>178<br>5<br>703|
|---|---|
||**15,472**<br>**1,680**<br>**307**<br>**(287)**<br>**16,558**<br>**Balance at**<br>**31 August**<br>**2019**<br>**Incoming**<br>**Resources**<br>**Outgoing**<br>**Resources**<br>**Transfers Balance at**<br>**31 August**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>944<br>404<br>51<br>(600)<br>697<br>1,583<br>366<br>357<br>1,592<br>1,144<br>2,596<br>1,377<br>2,363<br>623<br>1,200<br>261<br>(300)<br>1,262<br>125<br>251<br>38<br>(80)<br>258<br>1,579<br>2,957<br>1,033<br>(1,507)<br>1,996<br>2,204<br>(2,204)<br>0<br>8,933<br>1,099<br>3,258<br>6,774<br>678<br>497<br>295<br>(350)<br>530|
||**17,813**<br>**9,370**<br>**6,670**<br>**(5,041)**<br>**15,472**|



Orpington Methodist Church Annual Report and Accounts 2021 

Page 23 



## **16. Cash flow** 

|Net income<br>(Increase)/Decrease in fixed assets<br>Add back depreciation<br>(Increase)/Decrease in debtors<br>Increase/(Decrease) in creditors<br>Opening cash and bank<br>**Closing cash and bank**|**2021**<br>**2020**<br>**£**<br>**£**<br>(111,278)<br>576,778<br>(786,044)<br>(141,196)<br>14,393<br>9,898<br>(743)<br>96,954<br>59,530<br>5,317|
|---|---|
||**(824,142)**<br>**547,750**<br>1,129,593<br>581,843|
||**305,451**<br>**1,129,593**|



## **17. Related party transactions** 

There were no related party transactions during the year 

## **18. Capital commitments** 

||**2021**||**2020**|
|---|---|---|---|
||**£**||**£**|
|Building Development Project||0|738,535|



Orpington Methodist Church Annual Report and Accounts 2021 

Page 24