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2020-08-31-accounts

Brighouse Central Methodist Church

Trustees’ Annual Report and Financial Statements

31st August 2020

Commercial Street Brighouse West Yorkshire HD6 1AQ Registered Charity No. 1129462

Contents

Our Calling 2
Our Work 3
Review of Activities 2019-20 5
Our Plans for the Future 7
Financial Review 8
Governance Information 9
Organisational Policies 10
Declarations 12
Independent Examiner’s Report 13
Statement of Financial Activities 14
Balance Sheet 15
Notes to the Financial Statements 16 - 26

1 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Our Calling

Our statement of call is based upon Central’s core belief from Mark 12: 28-31

A Church which gathers to worship and scatters for mission, where Christ is central.

Who are we?

Central is a Methodist Church that welcomes all, worships passionately, challenges the status quo, and seeks to transform the world through God's love. Central is innovative and pioneering in its efforts to be a place of positive change within ourselves, within our community, and within our denomination. Central is a Christian community whose members are motivated by their faith to use their resources, including time and premises, to apply the values of the gospel through worship and service.

Our Mission

Central's mission is based on its statement of call to deepen faith through worship and challenging study, to create an engaged community through inclusiveness and caring, and to transform the world through active service and prophetic leadership.

Our Vision

The vision of Central is to reach more people, touch more lives locally and globally, and continue growing and building our resources in order to be a catalyst for change and possibility by responding to God's call.

Our Worship Objective

Central's objective in worship is to be welcoming to all; to provide spiritual guidance, acceptance, inspiration and support to all; to be a place where we can tell our stories and listen to God; and to offer uplifting and intelligent worship.

We seek to develop and broaden our worshipping experience using the talents, gifts and skills of God’s people in this place.

Our Outreach Strategy:

➢To welcome ALL regardless of race, colour, national origin, gender, sexual orientation, marital or economic status, age, physical or mental condition

➢To reach the non-­­church goers (through sharing community events and offering non-traditional worship

at untraditional times)

➢To reach the spiritually hungry, regardless of background

➢To carry on mission-focused ministries to serve our neighbourhood and the global community

➢To help our own members and regular attendees grow in their faith and involvement at Central

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

2

Our Work

Despite being challenged by the COVID-19 pandemic our calling is still to be at the heart of our community, expressing our Faith through the care and support of others.

The long standing tradition of Methodism in our town has long been recognised and appreciated as a vital part of a close knit community. Our aim is to build on that as we encourage groups, societies and individuals to share our building space and witness for themselves the heart beat that comes from within. We have much to offer.

To Families

We pride ourselves in having several young families committed to worship and other activities within church. We are committed to supporting these families who come with children and young people of varying ages. Indeed, we consider ourselves fortunate to be able to welcome them when the trend in many places of worship lacks the attendance of children and young people. Up to the first lockdown we had a very strong Baby and Toddler Group which met weekly and benefitted the youngest children in our community. The Saturday morning music session for babies and toddlers proved very popular and this continued to grow in numbers as it turned to online sessions through much of lockdown. Through our Children’s and Family’s worker we have been able to form strong links in our community with other groups and with our local schools.

For Music

There is an excellent culture for music in Brighouse and we have worked alongside members of Brighouse & Rastrick Brass Band to stage concerts in our worship centre which provide a real feel-good factor for those who attend.

This runs alongside Brighouse Central Music Academy which provides music tuition for a variety of instruments as well as working with local schools to provide after-school music clubs. Since the lockdown in March 2020 some of the music provisions have gone online. Brighouse Central was beginning to establish itself in the community providing a healthy and happy environment for members of the Community Choir and Build a Band Group. Although since March 2020 they have had to cease meeting, group members have formed a bond and manage to stay in contact with each other. They are hopeful of recommencing later in the year if everything goes well and we are allowed to open again.

For Community

Our Calling Statement at Brighouse Central Methodist Church is ‘Open to God - Open to All’. Working on that statement, and being mindful of reaching out to society’s most vulnerable, we have tried to provide help and support by creating places for refuge and discussion of the issues they face. Where possible we draw on the knowledge and expertise of others with more experience in their field of work. Although the work has had to be temporarily halted due to having to close our building, these people are very much remembered in our prayers.

The foodbank has continued to serve a high volume of referrals and school meal substitute parcels, the last quarter delivered 13,000 meals from the building. Moving forward, we are adding a small number of specialist support groups to our work and some counselling support to assist the pastoral team. We have also retained an events partner, and we are designing a music series, concerts and workshops, that will appeal to the community as they begin to venture beyond their homes and supermarkets once more.

3 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

For Support

At the heart of our Christian Faith is a need to put words into action. Our whole congregation were of a mind to support the idea of providing a warm, safe environment where the homeless, hungry or lonely can receive a hot meal, talk openly and find someone who will listen to them.

Four teams of willing volunteers, working on a rota basis, prepared, cooked and provided a hot meal which could be accessed every Friday lunch time. No charge was made but voluntary donations, from those who wished, were gratefully received to help support this important work.

Once again, due to the Pandemic, Friday Lunches had to cease but the work of the Food Bank became even more important and has continued to provide food parcels and backpack lunches for schoolchildren in need, particularly during the school holidays. The previous quarter’s figures account for 16,000 meals and an average of 50 school parcels each week.

For Outdoors

Recognising the need to provide visible and easy access to our building became apparent when we engaged in community events weekends with the town. With our new building plans we hope to provide a more people friendly building making it more accessible for everyone. During the Christmas period the outdoor space at the front of church provides the space for a large Christmas tree and Christmas lights which is clearly visible to the rest of the town.

Review of 2019-20

Church Life:

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

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People:

5 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Stewards & Leadership Teams:

Church Premises:

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

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Our Future Plans

It is hoped to open the Worship Centre again for ‘in person’ worship in May 2021. As yet we do not know how people will have been affected by the change to life through Covid. We must be ready to adapt to change and be there to help and support those who continue to struggle. As Government regulations change we will need to be ready to act.

We express our most sincere thanks to Revd Mark for seeing us through these troubled times. He has taken the worry and worked out how best to keep everyone together. His tireless research into modern technology to keep on-line worship progressing is very much appreciated as is the support given by his wife Mariet.

The second part of 2019-2020 has been difficult but through faith and prayer we survived.

As we were approaching Easter 2020 and starting to plan our Gift Weekend we were hopeful of being able to look forward to starting our new Building Project. What happened next affected everyone, we were taken into a National lockdown. We had been excited at the prospect of having much better access to our building and having the extra space to enable all in our community to access the building.

The Building Project Delivery Team have continued to press on diligently and did manage to secure the piece of land in front of church thus providing better access to the building and giving us a more visible presence at our end of the Main Street. Two members of the Delivery Team, tasked with applying for grants continued to do so. Unfortunately many of the grants are being withheld because of current financial implications.

As we are at the moment the present building plans are unaffordable and therefore we are seeking to simplify what we can achieve. Funds currently committed/promised to date total £769,000. We shall move forward, albeit not in the way we had hoped but we remain focused on achieving the best possible outcome for making Brighouse Central part of our wonderful community. Open to God - Open to All.

We sincerely hope our Music Academy will grow as we welcome back tutors and pupils. We are already looking at ways of making it safe to put on a concert in June.

Susan Yates Senior Church Steward Rev Mark Cheetham Chair of Trustees

7 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Financial Review

The summary financial figures below are taken from the full independently examined financial statements which follow on pages 13 to 25.

Income and Expenditure:

General Church Funds: Surplus of £4,171 (Deficit of £11,650 in 2018-19)

Extract from Balance Sheet
at 31/8/20 at 31/8/2019
General Church Funds: £26,273 £22,102
Model Trust Bequests: £ - £25,622
Church Development Fund: £ 4,653 £77,768
Major Building Project Fund: £217,496 £92,246
Foodbank: £53,477 £23,411
Other funds: £24,327 £18,735
Total church funds: £326,266 £252,884 (excluding value of fixed assets)
Cash in Bank:
Central Finance Board: £145,454 £153,547
Yorkshire Bank:
 £ 54,644 £ 28,773

2019-20 has been a very active year for the Church in terms of financial activity linked mainly to significant expenditure on the Church premises, and fundraising for the planned major alterations to the premises. Alongside this of course has been the challenge of running Church during the Covid-19 pandemic which lead to all on-site activities, and room bookings ceasing in March 2020. This report will focus on the main charitable funds and their respective activities during the last year.

General Church Fund

This fund covers the day to day operations of the Worshipping Church and it’s premises. Total income was £135,094 and expenditure was £129,209, after net transfers out of £1,714, this gave a surplus of £4,171 for the year.

The initial budget for 2019-20 projected a deficit of just under £30k, which as the opening balance on this fund was £26k meant insolvency if the financial issues weren’t addressed promptly. This potential situation had been predicted in 2018-19 and reported in last year’s financial review. As reported last year Calderdale Methodist Circuit had agreed to cover a deficit of up to £35k/pa for up to 5 years, to see the Church through the major rebuild project and to turn the financial situation around. Central drew down the full £35k in 2019-20, which enabled the Church to report the small surplus of £4,171 this year. This arrangement with the Circuit had been agreed prior to the pandemic, and in May 2020 the Church’s financial position, the impact of Covid on finances and future plans were thoroughly reviewed by Circuit officials prior to the grant being issued.

It was a condition of the Circuit grant that the Central takes positive steps to improve its financial situation, however in 2019-20 this has been unfortunately frustrated by the impact of the pandemic on Church life and finances.

The most significant financial impact of Covid was on room letting income, which was down £12k on the previous year, due to no lettings since March 2020. A number of other income generating events, such as the Brighouse community weekends were also missed. Fortunately giving and donations to Church have continued, and we’re able to report that they were £5k above budget, and £6k above last year’s total. This has been achieved through the use of on-line giving to replace regular Sunday collections, and well

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 8 Registered Charity No1129462

communicated messages to members around the on-going financial issues. Whilst some income sources were lost due to Covid, there was a reduction in the church’s running costs, with utility bills being lower, and the Covid Job Retention Scheme was used to furlough our cleaner and keyholder, these fortunately reduced the overall financial impact of Covid on the Church. As the pandemic is still on-going when writing this report, the financial impact will continue well into 2021 and the Church will need to adapt financially to continue its mission work.

Model Trust Bequest:

This fund was fully utilised in 2019-20, with the £25,622 balance transferred to the Church Development Fund and spent on premises repair work.

Church Development Fund:

This designated fund spent £143,919 in the year on building work and fees. This enabled overdue and essential repair works to be undertaken on the Church and the Link roofs, as recommended in the recent quinquennial building inspection. The fund held £4,653 at the year end, and this was planned to be fully utilised in the 2020-21 financial year on ongoing building repairs.

Major Building Project Fund:

This holds the restricted funds raised for the major project detailed earlier in this report. £125,646 was received in the year, of which £90,000 was a grant from Methodist Insurance, and the remaining £35,646 was donated to the project through the Christmas Is Not Your Birthday fundraiser and a virtual Gift Day in April. Thanks must be given to a those who have given so generously to this project in recent years, with this fund now standing at £217,496

Foodbank:

The £53,477 held in this restricted fund includes donated and purchased food stock valued at £24,500, and cash held of £28,977. The local community in Brighouse must be thanked for their generous donations over the last year.

Governance Information

Church Address: Central Methodist Church, Commercial Street, Brighouse, HD6 1AQ

Governance:

Act of Parliament - The Methodist Church Act 1976. Brighouse Central Methodist Church operates under the Constitutional Practice and Discipline of the Methodist Church (CPD).

Our Objectives

As a member church of The Methodist Church of Great Britain our objectives are:-

9 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Recruitment of Trustees

The Church Council is the Trustee body for the Church. All members of the Church Council are therefore Trustees of the Charity. The constitution of the Church Council is set out in CPD which outlines a range of ex-officio members of Church Council to ensure that all areas of the Church’s life are represented on the Council. CPD also details the processes for appointing and electing other persons as members of the Church Council.

Trustees as at 19[th] October 2020

Rev Mark Cheetham (chair), Cathy Philips (secretary)

Jennifer Blackburn, Peter Blackburn. David Brackenridge, Laura Braime, Martin Brook, Geoff Butler, Lee Carnley, Val Clarkson, Christine Cliffe, Val Eggleton, Linda Freeman, Jon Harris, John Holmes, Richard Holmes, David Ingram, Pippa Lupton, Val McLeod, Jodi Paige-Hirst, Rachel Rae, Janet Ratcliffe, Jill Roughton, Mary Samuel, Carolyn Stafford, Chris Tolson, Lucy Yates, Susan Yates.

The following also served as trustees during the period 1[st] Sept 2019 to 31[st] August 2020:Mariet Cheetham, Helen Clayton, Kay Farrow, Pamela Hales, Chris Mason.

Independent Examiners: Sleigh & Storey, Thornhill Brigg Mills, Thornhill Beck Lane, Brighouse, HD6 4AH

Bankers: Yorkshire Bank, 14 Bradford Road, Brighouse, HD6 1RN

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

Organisational Policies

Pay Policy

Central follows The Methodist Church of Great Britain’s pay policies and guidance for all posts. Rates of pay are reviewed annually and all staff are paid at least the Living Wage as issued by the Living Wage Foundation.

Investments:

Central invests any cash funds which are surplus for day to day cashflow requirements into a deposit fund held by the Central Finance Board of the Methodist Church.

The funds that support the Model Trust Bequests and Golden Wedding funds are held by the Trustees for Methodist Church Purposes in Trustees Interest Funds on which interest is credited to the accounts each month. The Armitage Bequest is held in the CFB Managed Mixed Fund. These are regarded as medium and long term investments.

Reserves:

Central’s reserves policy is reviewed annually and was last reviewed in October 2020. The current policy is to hold unrestricted free reserves within an ideal range of £40,000 to £60,000, and a minimum target level of £30,000. The minimum figure was calculated with reference to the monthly and annual cash-flow cycles to ensure cash balances in the General Church Fund remain positive throughout the year, specifically in relation to the quarterly payment of the Circuit Assessment. The ideal range was agreed as being suitable when considering loss of income contingency planning. In light of the Church’s experience in the current pandemic the ideal range has been reduced to reflect that giving and donations continued, and that the largest risk to income related to room lettings and event income.

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

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As at 31[st] August 2020 the unrestricted free reserves totalled £26,332 (2019: £47,783). These reserves are below the ideal range. It is part of Central’s long-term financial strategy to increase reserves through increasing unrestricted income and moving back to annual surpluses rather than deficits.

Central also held £4,653 (2019: £70,768) of freely accessible funds in a designated fund for future expenditure on premises repairs. This fund will be fully utilised in the 2020-21 financial year.

Funds held in restricted funds are by nature held for specific purposes or projects within the church, and are not included with the reserves policy. At 31[st] August 2020 restricted funds included the Major Project Fund (£217,496), Central Foodbank (£53,477), and other restricted funds (£24,268).

Fundraising activities:

Central does not use any professional fundraiser or commercial participator to carry out activities on the charity’s behalf.

Due to the low level of fundraising the charity undertakes, the charity is not a participant of a voluntary scheme for regulating fundraising, or any voluntary standard of fundraising for the activities carried out on behalf of the charity. Should the charity at some point in the future undertake a specific fundraising campaign or start to generate more income through fundraising, the trustees will look to sign up to a voluntary fundraising code.

Public Benefit Statement

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit ‘Charities and Public Benefit’. This Trustees’ report clearly sets out Central’s charitable objects, our current activities and how they benefit the public.

Tangible fixed assets for use by the charity:

Details of movements in fixed assets are set out in note 12 to the accounts.

Recognition of Liabilities:

Liabilities are recognised when there is a legal or constructive obligation committing the organisation to the expenditure.

11 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Declarations

I confirm that these accruals-based accounts for the year to 31st August 2020 have been prepared from the records of the Church and that they include all funds under the control of the Church trustees.

Signature of treasurer

Val Clarkson

Date: 19[th] October 2020

Presentation to the Church trustees

I confirm that the annual report and accounts for the year ended 31 August 2020 were presented to the meeting of the Church trustees held on 19[th] October 2020

Signature of the Chair of the meeting

Rev Mark Cheetham

Date: 19[th] October 2020

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

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Independent Examiner’s Report

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Brighouse Central Methodist Church for the year ended 31 August 2020 set out on pages 14 to 26. As the Church’s trustees, 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 Church’s accounts carried out under section 145 of the 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 which give me cause to believe that in, any material respect:

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.

I have not obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.

Signature of independent examiner:

Name of independent examiner: Jonathan Stead

Relevant professional qualification of independent examiner: FCCA

Name of firm: Sleigh & Storey, Thornhill Brigg Mills, Thornhill Beck Lane, Brighouse, HD6 4AH

Date: 22/04/2021

13 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Statement of Financial Activities for the year ended 31[st] August 2020

(Incorporating the income and expenditure account)

Income
Notes
Offerings
4
Donated Goods and Services
4
Donations
4
Grants
4
Gift Aid
4
Interest and investment income
5
Internal organisations
6
Other charitable income
7
Total income
Expenditure
Circuit assessment
Grants and donations
Property maintenance
Insurance, utilities etc
Office expenses
Other expenditure
Internal organisations
Total expenditure
Net income / (expenditure)
before transfers
Gains/(losses) on monetary investments
Gross transfers between funds
Other gains/(losses)
Net movement in funds for the year
Total funds brought forward at 1stSept
Total funds carried forward at 31st Aug		 General
Fund
Unrestricted
funds
Designated
funds
Restricted
Funds
Total
2020
£
£
£
£
60,267
-
-
60,267
-
-
43,930
43,930
9,039
-
46,911
55,950
38,004
50,963
135,660
224,627
12,183
-
-
12,183
106
1,175
69
1,350
-
-
14,743
14,743
15,591
-
8,719
24,310
135,190
52,138
250,032
437,360
82,460
-
-
82,460
1,260
-
2,026
3,286
4,083
143,919
396
148,398
15,661
-
-
15,661
935
-
-
935
24,862
-
76,182
101,044
-
-
12,172
12,172
129,261
143,919
90,776
363,956
5,929
(91,781)
159,256
**73,404 **
-
-
(62)
(62)
(27,380)
25,666
1,714
-
-
-
-
-
(21,451)
(66,115)
160,908
73,342
5,875,710
70,768
134,333
6,080,811
5,854,259
4,653
295,241
6,154,153

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

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Balance Sheet as at 31[st] August 2020

Notes
Fixed assets
Church building and other property
12
Current assets
Stock in hand
13
Debtors and prepayments
Investments with TMCP
14
CFB deposits
15
Cash at bank and in hand
16
Liabilities
Creditors: amounts falling due
within one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due
after more than one year
Loans to the Church
Net assets
Funds
24, 25 &		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
£
£
£

5,827,927
-
-
-
-
24,500
1,707
-
-
59
-
3,461
-
13,306
230,785
31,380
-
36,495		 Totals
2020
£
5,827,927
24,500
1,707
3,520
244,091
67,875		 Totals
2019
£
5,827,927
8,000
19,721
29,204
145,454
54,773
33,146
13,306
295,241
(6,814)
(8,653)
-		 341,693
(15,467)		 257,152
(4,268)
26,332
4,653
295,241
5,854,259
4,653
295,241
-
-
-
-
-
-		 326,226 252,884
6,154,153 6,080,811
-
-		 -
-
5,854,259
4,653
295,241		 6,154,153 6,080,811
26
Unrestricted funds
General funds
Designated funds
Restricted funds
Total funds carried forward at 31st March		 5,854,259
4,653
295,241
6,154,153		 5,875,710
70,768
134,333
6,080,811

The financial statements were approved Church Council on 19[th] October 2020 and signed on their behalf by:

Rev Mark Cheetham Chair of Trustees

Val Clarkson Treasurer

The notes on pages 16 to 26 form part of these financial statements.

15 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Notes to the Financial Statements for the year ended 31st August 2020

1. Accounting framework and policies

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

a, Accounting framework

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

b, Public benefit entity

Brighouse Central Methodist Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b, Preparation of the accounts on a going concern basis.

Based on the monetary assets and human resources available at 31[st] August 2019 the trustees believe that the Church is a going concern.

c, Fund accounting

Unrestricted funds are available for the use at the discretion of the Trustees in furtherance of the charitable objectives of Central

Designated funds comprise unrestricted funds that have been put aside at the discretion of the trustees for particular purposes (see note 25).

Restricted income funds are funds subject to specific restrictions imposed by the donors, funders, or by the purpose of the appeal. The purpose and use of the restricted funds are set out in the notes to the financial statements. Expenditure which meets these criteria is charged to the fund, including where appropriate a fair allocation of overheads and support costs.

d, Income

Income is recognised when Central has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

e, Deferred income

Any income received in this accounting period which relates to activities to be undertaken in future accounting periods is deferred.

f, Interest receivable

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

g, Donated services

Donated professional services and donated 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. In accordance with the Charities SORP (FRS 102) the general time of volunteers is not recognised.

On receipt, donated professional services and donated 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.

h, Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

j, Operating leases

Rentals applicable to operating leases are charged to the Statement of Financial Activities on a straight line basis over the term of the lease.

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

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Notes to the Financial Statements for the year ended 31st August 2020

k, Tangible fixed assets -

Freehold property is shown in the accounts at the insured value as calculated by Methodist Insurance PLC.

Individual fixed assets costing £1,000 or more are capitalised over their estimated useful economic lives on a straight line basis as follows:-

Category Annual Rate Major structural improvements 10% Other premises improvements 20% Computers and other equipment 33.3%

One full year’s depreciation is charged in the year of purchase.

l, Stock

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

m, Investments

Current asset investments include any deposit funds which are not readily accessible within one week.

n, Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments which are accessible within one week.

o, Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p, Pension contributions

Central operates a pension scheme in compliance with the workplace pension requirements. In line with the regulations employees are auto-enrolled into a workplace pension when the necessary requirements are met. At present no employees meet the necessary requirements.

Contributions due to employees’ pensions are charged to the Statement of Financial Activities in the period to which they relate. Details of the contributions in this financial year can be seen in the notes to the financial statements.

q, Taxation

Central is exempt from payment of income and corporation tax on its charitable activities.

Central’s activities are exempt under VAT regulations; therefore it is not VAT registered. All irrecoverable input VAT incurred is included on the relevant cost line.

r, Capital commitments

Central had no capital commitments on the date the accounts were approved.

2 Glossary of terms

CFB: Central Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for Methodist entities in Great Britain and provides investment advice to those entities

Church: a group of members from fewer than 10 to more than 300

Circuit: a group of Methodist Churches near each other, typically between 10 and 30

Connexion: The Methodist Church in GB which includes the Head Office at Methodist Church House, all Methodist Districts, Circuits and Churches in Great Britain

District: a group of contiguous Circuits, usually between 15 and 30

FRS: Financial Reporting Standard

SOFA: Statement of Financial Activities

SORP: Statement of Recommended Practice

TMCP: Trustees for Methodist Church Purposes, the legal owner and Custodian Trustee of all Methodist Model Trust property, including Legacies, Endowments and Accumulated Funds

17 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Notes to the Financial Statements for the year ended 31st August 2020

3 Statement of Financial Activities for previous year

Income
Notes
Offerings
Donations
Gift Aid
Interest and investment income
Income from investment properties
Internal organisations
Other charitable income
Total income
Expenditure
Circuit assessment
Grants and donations
Property maintenance
Insurance, utilities etc
Depreciation
Office expenses
Other expenditure
Internal organisations
Total expenditure
Net income / (expenditure)
before transfers
Gains/(losses) on monetary investments
Gross transfers between funds
Other gains/(losses)
Net movement in funds for the year
Total funds brought forward at 1stSept
Total funds carried forward at 31st Aug		 General
Fund
Unrestricted
funds
Designated
funds
Restricted
Funds
Total
2019
£
£
£
£
58,573
-
-
58,573
3,259
-
96,783
100,042
14,376
-
-
14,376
217
500
606
1,323
-
-
-
-
-
-
11,892
11,892
32,227
-
8,050
40,277
108,652
500
117,331
226,483
74,963
-
-
74,963
2,910
-
6,739
9,649
9,066
6,828
-
15,894
16,279
-
-
16,279
-
-
-
-
1,155
-
-
1,155
18,025
-
42,955
60,980
-
-
7,776
7,776
122,398
6,828
57,470
186,696
(13,746)
(6,328)
59,861
**39,787 **
-
-
43
43
2,262
-
(2,262)
-
-
-
-
-
(11,484)
(6,328)
57,642
39,830
5,887,194
77,096
76,691
6,040,981
5,875,710
70,768
134,333
6,080,811

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

18

Notes to the Financial Statements for the year ended 31st August 2020

4. Donated income

Offerings
Donated services and goods
Food for foodbank
Storage for foodbank
Donations
Donations
Legacies
Grants
Calderdale Circuit
Charities Aid Foundation
Community Foundation for
Calderdale
HMRC – CJRS
Listed Places of Worship Grant
Scheme
Methodist Insurance
Yorkshire West Methodist District
Gift Aid
Total		 Unrestricted
funds
Designated
funds
Restricted
Funds
Total
2020
Total
2019
£
£
£
£
£
60,267
-
-
60,267
62,477
-
-
43,500
43,500
25,500
-
-
430
430
520
-
-
43,930
43,930
26,020
8,039
-
46,911
54,950
44,463
1,000
-
-
1,000
6,785
9,039
-
46,911
55,950
128,101
35,000
38,400
23,173
96,573
11,121
-
-
3,000
3,000
-
1,000
-
14,300
15,300
5,000
2,004
-
-
2,004
-
-
12,563
-
12,563
-
-
-
90,000
90,000
-
-
-
5,187
5,187
2,750
38,004
50,963
135,660
224,627
18,871
12,183
-
-
12,183
14,376
119,493
50,963
226,501
396,957
172,992

5. Interest and investment income

Unrestricted Designated Restricted Total Total
funds funds funds 2020 2019
£ £ £ £ £
Central Finance Board - 1,175 - 1,175 1,001
TMCP 106 - 69 175 322
Total 106 1,175 69 1,350 1,323
ernal organisations income
Unrestricted Designated Restricted Total Total
funds funds funds 2020 2019
£ £ £ £ £
Centralpedes - - 895 895 1,327
Choir - - - - 917
Flower fund - - 1,044 1,044 1,613
Ladies Evening Fellowship - - 182 182 412
Toddlers - - - - 610
Outreach Events - - 4,259 4,259 6,178
Scarborough Weekend - - 8,152 8,152 -
Tappers/Old Time Dancing - - 211 211 835
Total - - 14,743 14,743 11,892

6. Internal organisations income

19 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Notes to the Financial Statements for the year ended 31st August 2020

7. Income from other charitable activities

Church room lettings
Wesley House lettings
Coffee mornings and
lunches
Weddings and funeral
Events and activities
Insurance reclaim
Total		 Unrestricted
funds
Designated
funds
Restricted
Funds
Total
2020
Total
2019
£
£
£
£
£
8,302
-
-
8,302
19,947
2,328
-
-
2,328
4,800

734
-
184
918
3,666

915
-
-
915
940
3,312
-
8,535
11,847
9,874
-
-
-
-
1,050
15,591
-
8,719
24,310
40,277

8. Staff costs, staff numbers, and trustee remuneration and expenses.

Employee costs during the year were:

2020
2019
£
£
Gross wages and salaries
44,360
25,207
751
306
715
495
Social security costs
Pension contribution
45,826
26,008

The charity does not hold or administer any pension fund or defined benefit pension scheme for employees, it does operate a defined contribution pension scheme. The charity makes defined contributions of 6% of a qualifying employee’s gross salary into a workplace pension scheme held and administered by The Pension’s Trust.

No employees received employee benefits that totalled more than £60,000

The average monthly head count was 7 staff (2019: 6 staff).

Payments made to trustees for additional services provided to the Church by agreement with the Church Council Meeting:-

2020
2019
£
£
Carolyn Stafford – organist wages
and music tuition fees		 2,667
2,177
Jodi Paige-Hirst – Associate Pastor 11,669
8,978
Pamela Hales – Associate Pastor 1,798
1,859
Pippa Lupton – Associate Pastor 5,274 -

No expenses were paid for reimbursing travel costs for attending meetings (2019: nil).

9. Volunteer contributions

The value of volunteers’ time is not included in the accounts, however it should be noted that Central can only undertake it’s work due to the many hours of volunteering that our Church members and many others from our community contribute on a daily basis.

10. Net income / (expenditure)

These are stated after charging:

stated after charging:
2020 2019
£ £
Independent examiners fees 576 558

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 20 Registered Charity No1129462

Notes to the Financial Statements for the year ended 31st August 2020

11. Valuation of donated goods and services

Central Foodbank relies upon the donations of food and other items from members of the public, local businesses and supermarkets. The amount of food distributed during the year was valued at £27,000. At 31[st] August 2020, the value of food held in stock was estimated at £24,500. For 10 months of the year the foodbank used off-site storage which was provided free of charge by a local business, and a value has been included to reflect this donation.

Food and other items distributed through
the foodbank
Facilities donated for use by the
foodbank
Total		 2020
2019
£
£
27,000
25,500
430
520
27,430
26,020

12. Tangible fixed assets

Cost
At 1st Sept 2019
Additions
At 31st Aug 2020
Depreciation
At 1st Sept 2019
Charge for year
At 31st Aug 2020
Net Book Value
At 31st Aug 2020
At 31st Aug 2019		 Church
(non
investment
) land and
buildings
Other non
investment
land and
buildings
£
£
5,597,368
-
-
-		 Investment
properties
£
-
-		 Other
fixed
assets
including
vehicles
£
-
-		 Fixtures,
fittings and
equipment
Total
£
£
230,559
5,827,927
-
-
5,597,368
-		 - - 230,559
5,827,927
-
-
-
-		 -
-		 -
-		 -
-
-
-
-
-		 - - -
-
5,597,368
-		 - - 230,559
5,827,927
5,597,368
-		 - - 230,559
5,827,927

The freehold property consists of the Church premises on Parsonage Lane, Brighouse, including Wesley House. The properties and fixtures are shown at their insurance replacement valuation, as advised by The Methodist Church for Great Britain.

13. Stock

2020 2019
£ £
Donated food 24,500 8,000

21 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Notes to the Financial Statements for the year ended 31st August 2020

14. Debtors: amounts falling due within one year

Trade debtors
Prepaid Circuit Assessment
Other prepayments
Accrued income		 2020
2019
£
£
-
-
-
19,721
1,157
-
550
-
1,707
19,721

15. Investments held with TMCP

The funds that support the Model Trust Bequests and Golden Wedding funds are held by TMCP in Trustees Interest Funds on which interest is credited to the accounts each month. The Armitage Bequest is held in the CFB Managed Mixed Fund. 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.

19014 - Model Trust Bequests
1585- Golden Wedding
1479 – Armitage Bequest		 2020
2019
£
£
-
25,622

59
59
3,461
3,523
3,520
29,204

16. Investment management

During the year the Church paid £58 (2019 £51) to TMCP, the custodians of the Church’s investment, as management fees.

17. Change in investment values

Carrying (market) value at beginning of year
Additions to investments at cost
Disposals at carrying value
Net gain/(loss) on revaluation
Carrying (market) value at end of year		 2020
2019
£
£
3,523
3,480
-
-
(62)
43
3,461
3,523

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

22

Notes to the Financial Statements for the year ended 31st August 2020

18. Cash at bank and in hand

Petty cash
Nochex donation account
Yorkshire Bank – church
Yorkshire Bank – foodbank
Central Finance Board
Total		 2020
2019
£
£
129
128
362
-
38,664
35,267
28,720
19,377
244,091
145,454
311,966
200,226

19. Creditors: amounts falling due within one year

Bank loan and overdrafts
Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income		 2020
2019
£
£
-
-
-
-
(9)
60
-
-

15,231
4,022
245
186
15,467
4,268

20. Contingent liabilities

No contingent liabilities were identified at 31[st] August 2020

21. Capital Commitments

There were no capital commitments at 31[st] August 2020 (2019: £nil).

22. Operating leases

At 31[st] August the Church had commitments under non-cancellable operating leases as set out below.

Operating leases which expire:
Less than 1 year
Between 1 to 5 years		 2020
2019
Land &
buildings
Plant &
Machinery
Land &
buildings
Plant &
Machinery
£
£
£
£
-
-
-
-
-
902
-
1,418
-
902
-
1,418

23 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Notes to the Financial Statements for the year ended 31st August 2020

23. Purposes of funds

Fixed Assets: This holds the value of the premises, equipment and all other fixed assets.

General Church Fund: These are the free reserves available to the charity for use without any restriction.

Model Trust Bequests & TMCP 1585: These are free reserves managed by TMCP, but available to the Church for use without any restriction

Designated Funds: These are unrestricted funds specifically designated for a purpose by the Trustees.

Church Development Fund: Holds funds allocated for mission of the church and development of the premises.

Restricted Funds: These are funds which have clearly defined conditions for their specific use stated in either a grant agreement, contract, or when the funds were donated.

Associate Pastors: Funds received from the General Church Fund, Calderdale Methodist Circuit, and Yorkshire West Methodist District, to fund the associate pastors working at Central.

Benevolence Fund: Funds to be spent on individuals in need of support due to personal financial hardship.

Central Foodbank: Funds received and held for the work of the Central Foodbank

Major Building Project: Funds specifically raised for the planned major redevelopment of Central’s premises.

Music Academy: Funds, income and grants, received for the work of Brighouse Central Music Academy

TMCP 1479 – Armitage Bequest: Funds held to support the work of Methodist local preachers in Brighouse.

Internal Organisations: This holds funds raised by specific groups or activities within Central to fund the ongoing work of these groups. The individual groups are:- Centralpedes; Choir; Flower Committee; Ladies Evening Fellowship; Outreach events; Toddlers; Worship Band. At the end of each financial year these groups review their future financial needs and transfer surplus funds to the General Church Fund.

Funds raised for other charities : This holds monies raised by Central, mainly through coffee mornings and retiring collections for other Methodist causes and external charities. This money is transferred to the other organisations on an ongoing basis, the balance at 31[st] August reflects recently raised funds due to be transferred.

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

24

Notes to the Financial Statements for the year ended 31st August 2020

24. Movement in funds – current year

Opening
balance
1stSept 19
Income
Expenditure
Transfers
Revaluations
Closing
balance
31st Aug 20
£
£
£
£
£
£
Unrestricted funds
Fixed Asset Fund 5,827,927
-
-
-
-
5,827,927
General Church Fund 22,102
135,094
(129,210)
(1,714)
-
26,273
Model Trust Bequests 25,622
96
(52)
(25,666)
-
-
TMCP – 1585 – Golden Wedding
59
-
-
-
-
59
5,875,710
135,151
(129,261)
(27,380)
-
5,854,259
Designated funds
Church Development Fund 70,768
52,138
(143,919)
25,666
-
4,653

1,684
24,260
(26,443)
2,750
-
2,251
882
-
(10)
-
-
872
23,411
71,204
(41,138)
-
-
53,477
92,246
125,646
(396)
-
-
217,496
3,324
11,624
(8,584)
-
-
6,364
3,621
70
(7)
-
(62)
3,622
7,857
14,743
(12,172)
(1,036)
-
9,392
1,308
2,485
(2,026)
-
-
1,767
Restricted funds
Associate Pastors
Benevolence Fund
Central Foodbank
Major Building Project
Music Academy
TMCP – 1479 – Armitage Bequest
Internal Organisations
Funds raised for other charities
134,333
205,102
(63,346)
1,714
(62)
295,241
Total funds 6,080,811
437,360
(363,956)
-
(62)
6,154,153

Transfers between funds:

The £1,714 of net transfers from the General Church Fund consists of the following; £2,750 transferred to the Associate Pastors fund as Central’s contribution to these posts; £1,036 of surplus funds transferred from the Internal Organisations.

25 Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

Notes to the Financial Statements for the year ended 31st August 2020

25. Movement in funds – previous year

Opening
balance
1stSept 18
Income
Expenditure
Transfers
Revaluations
Closing
balance
31st Aug 19
£
£
£
£
£
£
Unrestricted funds
Fixed Asset Fund 5,827,927
-
-
-
-
5,827,927
General Church Fund 33,751
108,437
(122,348)
2,262
-
22,102
Model Trust Bequests 25,457
216
(51)
-
-
25,622
TMCP – 1585 – Golden Wedding
59
-
-
-
-
59
5,887,194
108,653
(122,399)
2,262
-
5,875,710
Designated funds
Church Development Fund 77,096
500
(6,828)
-
-
70,768

-
9,771
(10,837)
2,750
-
1,684
922
-
(40)
-
-
882
-
47,214
(23,803)
-
-
23,411
59,599
33,526
(879)
-
-
92,246
2,777
7,936
(7,389)
-
-
3,324
3,480
105
(7)
-
43
3,621
8,753
11,892
(7,776)
(5,012)
-
7,857
1,160
6,887
(6,739)
-
-
1,308
Restricted funds
Associate Pastors
Benevolence Fund
Central Foodbank
Major Building Project
Music Academy
TMCP – 1479 – Armitage Bequest
Internal Organisations
Funds raised for other charities
76,691
117,311
(57,450)
(2,262)
43
134,333
Total funds 6,040,981
226,463
(186,676)
-
43
6,080,811

26 Connected organisations and related parties

Connected organisations include The Methodist Church of Great Britain, Yorkshire West Methodist District; Calderdale Methodist Circuit and other Methodist charities and funds within the Connexion.

Connected Organisations Receipts
£		 Payments
£
The Methodist Church of Great Britain 1,150
Yorkshire West Methodist District 5,187
Calderdale Methodist Circuit 96,573 (82,460)

Related Party Transactions:-

There were no other related party transactions, other than the payments to trustees for services detailed in Note 8.

27 Post Balance Sheet Event

There are no post balance sheet events to report.

Brighouse Central Methodist Church Annual Report and Financial Statements 2019-20 Registered Charity No1129462

26