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2021-08-31-accounts

Brighouse Central Methodist Church

Trustees’ Annual Report and Financial Statements

31st August 2021

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

Contents

Our Calling 2
Our Work 3
Review of Activities 2020-21 5
Our Plans for the Future 7
Financial Review 8
Governance Information 10
Organisational Policies 11
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 2020-21 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 2020-21 Registered Charity No1129462

2

Our Work

It is our sincere hope that as we emerge from the COVID-19 Pandemic, that hit the world with force, we can once again take up the challenge of establishing ourselves within the community of Brighouse, serving those who seek help, hope and encouragement by offering a place of welcome, love and support.

For a large part of 2020 our building was closed, as we felt a duty of care towards our church community and the wider community was necessary. Their safety and well-being were our priority, so we had to find other ways of reaching out and sharing our Christian beliefs and values. These are identified later in the report.

The Worship Centre opened again for public worship on 23rd May 2021 after a thorough Risk Assessment had been carried out and visible one-way signage put in place. In order to assess how many people were likely to attend for worship a booking system was put in place. Two external organisations also planned on returning to use the building.

For Families

Some families found it very difficult to cope during lockdown so online support groups were set up. Children coloured in rainbows and displayed them in their windows at home. Through the work of our Children & Families worker, children were encouraged to write letters and draw pictures for older members who were finding isolation and loneliness difficult. Although initially the idea was for children and older members of our congregation to become buddies, it also extended to other vulnerable people within our wider community and became known as ‘Operation Smile’. This continued for many months. Our young people had weekly sessions on Zoom, coming together to share concerns or have discussions and just be there for each other. By inviting other friends to join in, the opportunity was there to extend beyond the church community.

For Music

Brighouse Central was beginning to build a reputation as a music hub within the town. Unfortunately the Music Academy was not able to continue building on its ever growing popularity of providing excellent music lessons and the ‘after school club’ provision had to be halted. The beautiful sounds that resonate in our Worship Centre during concerts, both by bands and choirs, had been sadly missed but we were delighted when Brighouse & Rastrick Band were able to put on a concert in June 2021, the first one in a long time. Although numbers were restricted it was a very popular concert. We look forward to reestablishing that vibrant link of sharing wonderful music experiences with the people of the town and surrounding areas.

For Community

The excellent links we had built up alongside partners, specialised in their particular areas, have been put ‘on hold’ until a time when we feel it is safe to offer our building again to support the most vulnerable with issues concerning social justice, isolation, addiction, family support, debt management, integration and housing. It is our hope to be able to once again reach out to those needing continued support, particularly after the additional pressures of lockdown.

For Support

Recognising how our Social Justice Ministry is a powerful component of Brighouse Central’s life, as a congregation we started cooking lunches for the homeless, hungry or lonely. Numbers were increasing and we had become an accepted and comfortable venue where good food and hospitality were served. Once again due to Covid rules and in the interest of keeping people safe these Friday Lunches have been suspended until a time when we can operate again safely.

The Food Bank has become the hub of the Lower Valley and continues to support families in need. Throughout the Pandemic it has been a lifeline to many, providing food parcels and also backpack meals for school children in need during school holidays.

Brighouse Central is positive it can once more gain a reputation for its active listening and action to help those in need.

For Outdoors

Brighouse Central has established itself as a community church and the site it sits on makes it an ideal location for outreach into the community. The area surrounding the building has hosted many activities linked to community events organised by the town and with which the church has been keen to get involved. Although our building plans have had to be modified we still look to improve access for all and enhance the frontage of our building so making it attractive to visitors. We look forward to the time when we can once again share in Community weekends with the town.

Review of 2020-21

Church Life:

Lockdown gave our church opportunities to be creative in our communications with all. Below are some examples of how we have engaged with members, adherents and the wider community.

All services are available via social media for people to watch at their leisure.

Communication has been through

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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People:

Stewards & Leadership Teams:

Minister Appointed Stewards Worship Consultation Representative Junior Church Team Representative Former Senior Steward Associate Pastor Children & Families Treasurers Team Representative Pastoral Secretary Property Steward Interns

Church Premises:

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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Our Future Plans

Susan Yates Senior Church Steward

Rev Mark Cheetham Chair of Trustees

Financial Review

The summary financial figures below are taken from the full independently examined financial statements which follow on pages 14 to 26.

Extracted from Statement of Financial Activities:-

Total Church Funds: Surplus of £1,551 (Surplus of £73,342 in 2019-20)

General Church Funds: Deficit of £559 (Surplus of £4,171 in 2019-20)

Extracted from Balance Sheet:-

At 31/8/21 at 31/8/20
Fund Balances: £ £
General Church Funds: 25,714 26,273
Model Trust Bequests: - -
Church Development Fund - 4,653
Facilities Manager 9,397 -
Major Building Project Fund: 228,716 217,496
Foodbank: 39,904 53,477
Other funds: 24,046 24,327
Total Church Funds: 327,777 326,226(excluding value of fixed assets)
Cash in Bank: £ £
Central Finance Board: 227,179 244,091
Virgin Money – church 46,239 67,485
Virgin Money – foodbank 23,024 26,273

As was expected and reported last year, 2020-21 has continued to prove challenging for the church in its struggle against the effects of the on-going Covid-19 pandemic. Although there has been a slight increase in room lettings with two regular external weekly bookings now back on track, overall, the diary has been empty. With regard to the premises, there has not been full refurbishment we had hoped for, but we have made some improvements to the kitchen, and this has given us confidence to re-instate the Open-Door Lunch Service. High building costs in terms of materials and shortage of labour have meant we have had to curtail our plans for the major building project – this has led to an increase in costs relating to professional fees as plans were revamped

This report will focus on the main charitable funds and their respective activities during the last year.

General Church Fund:

This unrestricted fund covers the day-to-day operations of the Worshipping Church and its premises. Total income was £105,598 and expenditure was £111,004; after net transfers in of £4,847, this gave a deficit of £559 for the year.

The initial budget for 2020-21 projected a deficit of circa £6,648, this included a grant of up to £35,000 from the Calderdale Methodist Circuit. Fortunately, the financial position over the year was better than expected and the Circuit grant needed was reduced to £23,500. We carried forward funds of £25,714, just £559 lower than in 2020. The reduced grant requested was indicative that as a church we were taking steps to improve our financial position, in line with the Circuit’s condition of continuing financial support. This has not been easy given that Covid continued to have a negative impact not only on lettings but also our fundraising

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 8 Registered Charity No1129462

activities and events planned for the summer were thwarted by last minute Covid restrictions. This was offset to some extent by external grants, furlough and utility credits, along with the consistent giving of church members - donations and regular giving again exceeding budget. In addition, many of our internal groups have chosen to donate their activity funds direct into the General Fund as opposed to their own restricted fund. Without these sources of income our cash flow would have been seriously affected and it is doubtful that we would have been able to pay the full Circuit assessment of £74,214.

Major Building Project Fund:

This restricted fund holds the funds for our planned major building project. At the year-end it held £228,716, an increase of £11,220 over the year. £47,164 was received from donation, grants and gift aid, whilst £35,944 was spent on professional fees. The fall in deposit interest rates reduced our income on this fund, reducing from £140 per month in September 2020 to just £2 in August 2021.

Central Foodbank:

Funds and stock for the foodbank are shown in a restricted fund, ensuring they are used solely for this purpose. At 31st Aug 2021, the Foodbank held food stock both purchased and donated to the value of £16,456 along with cash and other assets of £23,448 bringing the total held in this Restricted Fund to £39,904. The Foodbank has continued to operate throughout the Covid Pandemic and has seen an increase in demand, as the community tries to cope with loss of income coupled with inflation. It has been fortunate in that grants and donations have been forthcoming.

The Future – Financially:

Looking ahead it is vital that the church improves its room hire appeal and can therefore increase its income through lettings if it is to become financially sustainable again. The church is taking a two-tier approach to achieving this. Firstly, by planning to start work on the curtailed building project as soon as possible and secondly, in planning to employ a Facilities Manager to oversee the running of the building.

The Circuit grants which have supported Central over the last two years have effectively covered the lost lettings income during the Covid pandemic, but fortunately we’ve still been able to reduce the funding requested from the Circuit this year. This offer from the Circuit was for up to five years. It is imperative therefore that the Church continues to move in a positive financial direction, so as not to be reliant on Circuit support and to be able to maintain its presence and Christian witness in Brighouse.

9 Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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:-

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 1[st] November 2021:

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

Jennifer Blackburn, Peter Blackburn, Laura Braime, Martin Brook, Lee Carnley, David Carter, Val Clarkson, Helen Clayton, Christine Cliffe, Val Eggleton, Linda Freeman, Sheila Hoodlass, John Holmes, David Ingram, Pippa Lupton, Val McLeod, Jodi Paige-Hirst, Rachel Rae, Janet Ratcliffe, Jill Roughton, Mary Samuel, Carolyn Stafford, Lucy Yates, Susan Yates.

The following also served as trustees during the period 1[st] Sept 2020 to 31[st] August 2021:David Brackenridge, Geoff Butler, Jon Harris, Richard Holmes, Chris Tolson,

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

Bankers: Virgin Money, 12 Bradford Road, Cleckheaton, BD19 3RJ

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

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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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 2021. 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 recent 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.

As at 31[st] August 2021 the unrestricted free reserves totalled £25,773 (2020: £26,332). 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 £9,397 (2020: £0) of freely accessible funds in a designated fund for future expenditure on the proposed Facilities Manager post. It is planned for this balance to be fully utilised in the 2021-22 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. As at 31[st] August 2021 restricted funds included the Major Project Fund (£228,716), Central Foodbank (£39,904), and other restricted funds (£23,987).

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.

11 Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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.

Declarations

I confirm that these accruals-based accounts for the year to 31st August 2021 have been prepared from the records of the Church and that they include all funds under the control of the Church trustees.

Treasurer, Val Clarkson

Date: 1[st] November 2021

Presentation to the Church trustees

I confirm that the annual report and accounts for the year ended 31st August 2021 were presented to the meeting of the Church trustees held on 1[st] November 2021

Chair of the meeting, Rev Dr Mark Cheetham

Date: 1[st] November 2021

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 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 2021 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: Chartered Certified Accountant

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

Date:

13 Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

Statement of Financial Activities for the year ended 31[st] August 2021

(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
2021
£
£
£
£
52,619
-
-
52,619
21
-
18,963
18,984
8,462
2,400
38,135
48,997
27,426
7,000
61,089
95,515
11,434
-
5,510
16,944
-
-
397
397
-
-
2,254
2,254
5,636
-
2,535
8,171
105,598
9,400
128,883
243,881
74,221
-
-
74,221
1,150
-
2,596
3,746
3,018
4,653
33,841
41,512
12,577
-
-
12,577
1,024
-
-
1,024
19,014
3
89,133
108,150
-
-
1,735
1,735
111,004
4,656
127,305
242,965
(5,406)
4,744
1,578
916
-
-
635
635
4,847
-
(4,847)
-
-
-
-
-
(559)
4,744
(2,634)
**1,551 **
5,854,259
4,653
295,241
6,154,153
5,853,700
9,397
292,607
6,155,704

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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Balance Sheet as at 31[st] August 2021

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
-
-
-
-
16,456
40,198
-
-
59
-
4,096
-
9,397
217,782
(12,298)
-
59,883		 Totals
2021
£
5,827,927
16,456
40,198
4,155
227,179
47,585		 Totals
2020
£
5,827,927
24.500
1,707
3,520
244,091
67,875
27,959
9,397
298,217
(2,186)
-
(5,610)		 335,573
(7,796)		 341,693
(15,467)
25,773
9,397
292,607
5,853,700
9,397
292,607
-
-
-
-
-
-		 327,777 326,226
6,155,704 6,154,153
-
-		 -
-
5,853,700
9,397
292,607		 6,155,704 6,154,153
26
Unrestricted funds
General funds
Designated funds
Restricted funds
Total funds carried forward at 31st August		 5,853,700
9,397
292,607
6,155,704		 5,854,259
5,653
295,241
6,154,153

The financial statements were approved Church Council on 1[st] November 2021 and signed on their behalf by:

Rev Dr Mark Cheetham Val Clarkson Chair of Trustees Treasurer

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

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

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.

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

Based on the monetary assets and human resources available at 31[st] August 2021 the trustees believe that the Church is a going concern.

d, 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.

e, 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.

f, Deferred income

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

g, 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.

h, 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.

i, 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 2020-21 Registered Charity No1129462

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

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 2020-21 Registered Charity No1129462

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

3 Statement of Financial Activities for previous year

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 2020-21 Registered Charity No1129462

18

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

4. Donated income

Offerings
Donated services and goods
Equipment
Food for foodbank
Storage for foodbank
Donations
Donations
Legacies
Grants
British Food and Allied
Workers Union
Calderdale Circuit
Calderdale MDC
Charities Aid Foundation
Community Foundation for
Calderdale
HMRC – CJRS
Listed Places of Worship Grant
Scheme
Methodist Insurance
Sainsburys Carrier Bag Charge
Sir George Martin Trust
Triangle Wholefoods
Yorkshire West Methodist District
Gift Aid
Total		 Unrestricted
funds
Designated
funds
Restricted
Funds
Total
2021
Total
2020
£
£
£
£
£
52,619
-
-
52,619
60,267
21
-
-
21
-
-
-
18,963
18,963
43,500
-
-
-
-
430
21
-
18,963
18,984
43,930
7,462
2,400
38,135
47,997
54,950
1,000
-
-
1,000
1,000
8,462
2,400
38,135
48,997
55,950
-
-
200
200
-
23,500
-
14,200
37,700
96,573
1,000
7,000
20,600
28,600
-
-
-
-
-
3,000
1,000
-
3,680
4,680
15,300
1,926
-
-
1,926
2,004
-
-
-
-
12,563
-
-
-
-
90,000
-
-
11,272
11,272
-
-
-
3,000
3,000
-
-
-
200
200
-
-
-
7,937
7,937
5,187
27,426
7,000
61,089
95,515
224,627
11,434
-
5,510
16,944
12,183
99,962
9,400
123,697
233,059
396,957

5. Interest and investment income

Central Finance Board
TMCP
Total		 Unrestricted
funds
Designated
funds
Restricted
funds
Total
2021
Total
2020
£
£
£
£
£
-
-
333
333
1,175
-
-
64
64
175
-
-
397
397
1,350

19 Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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

6. Internal organisations income

Unrestricted Designated Restricted Total Total
funds funds funds 2021 2020
£ £ £ £ £
Centralpedes - - - - 895
Flower fund - - 828 828 1,044
Founders Music - - 1,426 1,426 -
Ladies Evening Fellowship - - - - 182
Outreach Events - - - - 4,259
Scarborough Weekend - - - - 8,152
Tappers/Old Time Dancing - - - - 211
Total - - 2,254 2,254 14,743
come from other charitable activities
Unrestricted Designated Restricted Total Total
funds funds Funds 2021 2020
£ £ £ £ £
Church room lettings 3,292 - - 3,292 8,320
Wesley House lettings - - - - 2,328
Coffee mornings and
lunches		 - - - - 918
Weddings and funeral
2,017		 - - 2,017 915
Events and activities 327 - 2,535 2,862 11,847
Total 5,636 - 2,535 8,171 24,310

7. Income from other charitable activities

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

Employee costs during the year were:

Employee costs during the year were:
2021
2020
£
£
Gross wages and salaries
40,134
44,360
1,057
751
720
615
Social security costs
Pension contribution
41,911
45,826

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 (2020: 7 staff).

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

2021
2020
£
£
Carolyn Stafford – organist wages
and music tuition fees		 78
2,667
Jodi Paige-Hirst – Associate Pastor 11,996
11,669
Pamela Hales – Associate Pastor 149
1,798
Pippa Lupton – Associate Pastor 2,902
5,274

No expenses were paid for reimbursing travel costs for attending meetings (2020: nil).

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

20

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

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)

10. Net income / (expenditure)
These are stated after charging:
2021 2020
£ £
Independent examiners fees 594 576

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 £27,007. At 31[st] August 2021, the value of food held in stock was estimated at £16,456. 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		 2021
2020
£
£
27,007
27,000
-
430
16,45
27,430

12. Tangible fixed assets

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

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.

21 Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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

13. Stock

2021 2020
£ £
Donated food 16,456 24.500

14. Debtors: amounts falling due within one year

Trade debtors
Prepaid Circuit Assessment
Other prepayments
Accrued income		 2021
2020
£
£
-
-
16,698
-
-
1.157
23,500
550
40,198
1,707

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		 2021
2020
£
£
-
-

59
59
4,096
3,461
4,155
3,520

16. Investment management

During the year the Church paid £7 (2020 £58) 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		 2021
2020
£
£
3,460
3,522
-
-
636
(62)
4,096
3,460

Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

22

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

18. Cash at bank and in hand

2021 2020
£ £
Petty cash - 129
Nochex donation account 1,346 362
Virgin Money – church 23,215 38,664
Virgin Money – foodbank 23,024 28,720
Central Finance Board 227,179 244,091
Total 274,764 311,966

19. Creditors: amounts falling due within one year

Bank loan and overdrafts
Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income		 2021
2020
£
£
-
-
-
-
376
(9)
-
-

7,420
15,231
-
245
7,796
15,467

20. Contingent liabilities

No contingent liabilities were identified at 31[st] August 2021

21. Capital Commitments

There were no capital commitments at 31[st] August 2021 (2020: £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		 2021
2020
Land &
buildings
Plant &
Machinery
Land &
buildings
Plant &
Machinery
£
£
£
£
-
386
-
-
-
-
-
902
-
386
-
902

23 Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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

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.

Facilities Manager : Holds funds allocated for the development of a new post managing 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 2020-21 Registered Charity No1129462

24

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

24. Movement in funds – current year

Opening
balance
1stSept 20
Income
Expenditure
Transfers
Revaluations
Closing
balance
31st Aug 21
£
£
£
£
£
£
Unrestricted funds
Fixed Asset Fund 5,827,927
-
-
-
-
5,827,927
General Church Fund 26,273
105,597
(111,003)
4,847
-
25,714
Model Trust Bequests -
-
-
-
-
-
TMCP – 1585 – Golden Wedding
59
-
-
-
-
59
5,854,259
105,597
(111,003)
4,847
-
5,853,700
Designated funds
Church Development Fund 4,653
0
(4,653)
-
-
-
Facilities Manager
-
9,400
(3)
-
-
9,397
4,653
9,400
(4,656)
-
-
9,397

2,251
18,537
(18,512)
2,750
-
5,026
872
-
-
-
-
872
53,477
53,401
(65,774)
(1,200)
-
39,904
217,496
47,164
(35,944)
-
-
228,716
6,364
6,636
(2,739)
-
-
10,261
3,622
64
(7)
-
635
4,314
9,392
2,254
(1,735)
(6,397)
-
3,514
1,767
828
(2,595)
-
-
-
Restricted funds
Associate Pastors
Benevolence Fund
Central Foodbank
Major Building Project
Music Academy
TMCP – 1479 – Armitage Bequest
Internal Organisations
Funds raised for other charities
295,241
128,884
(127,306)
(4,847)
635
292,607
Totals 6,154,153
243,881
(242,965)
-
635
6,155,704

Transfers between funds:

The £4,847 of net transfers to the General Church Fund consists of the following; £2,750 transferred to the Associate Pastors fund as Central’s contribution to these posts; £1,200 from Central Foodbank for premises costs; £6,397 of surplus funds transferred from the Internal Organisations.

25 Brighouse Central Methodist Church Annual Report and Financial Statements 2020-21 Registered Charity No1129462

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

25. Movement in funds – previous 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

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 7,937
Calderdale Methodist Circuit 28,600 (74,221)

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 2020-21 Registered Charity No1129462

26