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← Knutsford Methodist Church

2023-08-31-accounts

Charity Number: 1130195

KNUTSFORD METHODIST CHURCH

Report and financial statements For the year ended 31[st] August 2023

Reference and administrative information

Knutsford Methodist Church

for the year ended 31[st] August 2023

Charity no. 1130195

Registered office and operational address Princess St., Knutsford, Cheshire WA16 6BY Trustees Those who served during the year and up to the date of this report were:

Steve Atkinson Secretary (until August 2023) Jenny Bailey Chris Barratt Linda Bowler Revd Alan Bradley Chair Hugh Chapman From April 2023 Gail Crawford Stuart Crawford Dawn Freeman Peter Freeman Staff Elizabeth Hall Circuit representative Suzy Keen Until April 2023 Nigel Langham Liz McGrath John Mills From April 2023 Bryan Peak Treasurer Dorothy Richards Chris Robertson Co-opted from October 2023 Jackie Robertson Gill Royle Vicky Royle Alan Simpson Until March 2023 Revd Neal Stanton Until September 2023 Joanne Taylor David Tomkins Jackie Tomkins Amanda Vickers Staff Joanne Wallwork Until April 2023 Elizabeth Waters Henry Waters Until April 2023 Will Waters

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Knutsford Methodist Church

Reference and administrative information

for the year ended 31[st] August 2023

Personnel

Revd Alan Bradley Minister and Superintendent of the Alderley Edge and Knutsford Circuit Revd Sincere Makunde Probationary Minister (from September 2023) Revd Neal Stanton Authorised Minister, Knutsford Methodist Church and Pioneer Pastor, Zac’s Kingdom Community (until September 2023) Peter Freeman Children & Families Worker Liz McGrath Pastoral Worker Amanda Vickers Administrator and Assistant Treasurer Joanne Wallwork Zac’s Kingdom Community Administrator (until September 2023) Sid Walker Caretaker Peter Webb Caretaker (until March 2023)

Bankers Royal Bank of Scotland plc , Drummond House, 1 Redheughs Avenue, Edinburgh EH12 9JN

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

Independent Examiner

Catherine Hall FCCA DChA, Slade & Cooper Limited, Beehive Mill, Jersey Street, Manchester, M4 6JG

Website www.kmc.org.uk

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

The trustees present their report and the unaudited financial statements for the year ended 31[st] August 2023.

Reference and administrative information set out previously form part of this report. The financial statements comply with current statutory requirements, the charity’s constitution, and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Summary

Knutsford Methodist Church (KMC) is a Christian church of some 260 members, embedded in the busy town of Knutsford. Over 150 years old, it offers a modern place of worship in a historic setting.

A registered charity, it is part of the Methodist Church in Britain and one of 5 churches and communities in its Alderley Edge & Knutsford Circuit.

MISSION

We are an active and inclusive Christian community seeking to grow and share the love of God . Through our presence and programmes we offer an invitation to:

Although we report on our performance at KMC under these four separate headings, in reality much of what we do has elements of all of these invitations embedded within them.

ACHIEVEMENTS AND PERFORMANCE

Worshipping God

“A shared life with God”

Our regular structured acts of worship comprised:

Our main all age Sunday service at 10 am, streamed online through the KMC YouTube channel.

A mid-week Communion.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

Cameo held monthly.

Oasis also monthly.

Attendance at the Sunday morning service was in the range 100/120 over the last year. Investment in livestreaming technology, initially driven by the Covid pandemic, enabled those who were still shielding, finding it difficult to attend or living elsewhere to watch the service remotely. Higher numbers attended the full range of services we offered at the major festivals of Christmas and Easter (for example 160 at the main service on Easter Day).

We continued to offer a mix of traditional and contemporary music and, through our Ministers, visiting and local preachers, delivered Bible-based teaching, seeking to create spaces and opportunities where all ages can worship and pray together in ways that are inclusive, relevant and spiritually uplifting.

The mid- week lunchtime Communion service was offered as part of our town centre ministry, attended by 20 worshippers on average.

For those sufficiently mobile, much valued was Cameo, a monthly service of hymns, friendship and fellowship, aimed at senior citizens and those who find it difficult to attend our main service, with attendance in the range 25/35.

Oasis, a meditative Communion service with prayers for healing and wholeness, also had an average attendance of 20.

We continued to support our community by helping mark special life events: baptisms, dedications, funerals, marriages.

In addition to our formal membership, there were many others who attended our services and events last year and see KMC as “their church”.

Encountering Jesus

“A place of unconditional love and transformation where we grow in faith”

We have a passion to share the gospel with the younger members of our community, building on the excellent relationships we enjoy with our local schools. One manifestation of the latter was a regular programme of Bible stories in local primary schools through drama called ‘Open the Book’. We also offered Harvest and Easter Experiences in the church building, attended by substantial numbers of local schoolchildren. Internally we hosted a meeting for all the churches in the Circuit reviewing our mission in schools and with children and families.

We continued to offer a programme of activities in church on Sundays for different age groups under the banner KIDZONE, offering a safe space of welcome and nurture, where children learn about the Bible and are introduced to the way of faith in Jesus.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

Peter, our Children and Families Worker, continued to provide strong direction and leadership to the team but his hours reduced in September 2023 as a prelude to retirement, following health issues from which he has thankfully recovered. Discussions are at an early stage to explore his replacement being a full time post, working across the Circuit.

In Autumn 2023 we launched a new youth group “Rock Solid”, for those in school years 5-9, meeting fortnightly. We are grateful to Andrew & Turid Dinsmore for continuing to sustain our youth ministry and links with young people.

A church weekend was held under the banner “Enjoying God’s presence” open to all, with a range of activities, including a faith supper, worship and teaching, workshops and a Songs of Praise evening.

The town hosts a Makers’ Market monthly and KMC offers a warm welcome to those visiting with refreshments, conversation, a sanctuary and access to all its facilities.

We started an Alpha course in September 2023, exploring the basics of the Christian faith, offered as a resource also to the Circuit and wider community.

A comprehensive brochure detailing the church’s programmes and the activities taking place in the Community Centre, under the banner “A centre for the whole community” has been prepared and is being distributed, especially to the residents of new housing developments in the town.

Finding community

“KMC is a place to belong”

House groups provided the context for much pastoral care and personal growth. We currently have 11 groups with a membership in the region of 125, approaching half the overall church membership. They are though open to anyone and attendees include some from other churches or with no church background, who find this connection with KMC valuable and are welcomed and valued by the church in return.

For many their house group is at the heart of what it means to belong to KMC, finding there a source of study and learning, fellowship and spiritual growth. Our ongoing objective is to grow the groups and we actively encourage those new to the church to join a group.

Although groups are free to select their own study subjects, many follow the church’s preaching and teaching programme, often using bespoke material provided by our Minister. This included ‘Bible Month’, a central Methodist initiative, focused this year on the book of Revelation.

Church coffee mornings have been organised by a number of the groups, with visitors very much welcome. The groups usually chose a charity as a focus, helping raise both awareness and funds.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

‘Life groups’ included Monday Club (meeting monthly, open to ladies) and Men’s breakfast, both of which are open to those not currently church members.

Renew Wellbeing Café provides a weekly drop-in space, “where it is okay not to be okay” and people can experience peace, welcome and friendship. We have received referrals from the local social prescriber for the town’s medical practices, seeking support for patients with mental health struggles.

We offered an extensive structure of pastoral support to the elderly, housebound, those in full time care and others in our community, including those in local care homes.

We have continued to offer pastoral care to members of Snelson Church, a Circuit church which closed in October 2022.

Although the church’s demographic is skewed to the over 60s, we continue to proactively seek the views of those under 50, very conscious of the continuing impact of the pandemic on families and young people in areas such as education.

Bereavement care is a vital part of our pastoral ministry. Much appreciated was the annual bereavement service when those who lost loved ones came to light candles in remembrance and hope. Also appreciated is the work of Liz, our Pastoral Worker who keeps in touch with those bereaved and sends greetings on significant anniversaries. Liz has unfortunately been absent for a good part of the year and we pray for her continuing recovery and return to her valuable pastoral role, which covers the whole Circuit but is a particular support to the Minister of KMC.

Making a difference

“A servant heart for our neighbour and the world”

Our church and community centre is situated right in the heart of this lively market town, opening directly on to one of the town’s main shopping streets and offering a seven day a week presence in the community.

The building has been extensively modified internally over the last 20 years to provide a flexible space for the church and wider community to use and has become a hub for various community groups. Over the past year these have included counselling and training services, exercise classes, craft activities, Rainbows, Guides and Rangers, drama and performing arts for both children and adults, training in Emergency life Support Skills, antenatal classes, Tai chi, choirs and u3a with a wide range of activities.

This is combined with it remaining at its heart a safe place, a warm space, a sacred space for reflection and prayer.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

Although a ‘wealthy’ area, there are pockets of deprivation, including real food poverty. KMC members continued to play their part in addressing these needs, offering their individual gifts and support to 2 linked charities: ‘Hope Central’ (a Christian charity operating a busy food bank, debt counselling through CAP and other services) and ‘The Welcome’ (a busy community centre). We have inherited the role of the former Welcome Methodist Church in ministering to the social and spiritual needs of the people of the Longridge and Shaw Heath areas of Knutsford and continue to evaluate how we might best deliver this.

“Friendship Café” is offered weekly as a resource to those living with dementia and their carers. It provides a place where those with dementia are cared for and recognised as a valued part of the community and where carers find mutual support and encouragement. It provides a variety of appropriate activities, including singing, exercises, reminiscence, crafts and trips out. Transport is provided if needed to attend. This has proved a much appreciated and valued social outreach

Another important outreach is delivered through “Jolly Tots”, a weekly term time group where parents and carers with pre-school children can meet informally in a safe environment. Through this, members, usually with no prior connection with KMC, can form new networks and relationships. With strong demand, we have had to introduce a waiting list as we reflect on the practicality of accommodating increased numbers.

KMC supports other organisations and charities addressing social and faith issues which align with our own objectives, by facilitating fundraising collections for them and by direct grants.

Support last year, whether financially, in practical help or through raising awareness, included:

This year we signed up to be a “Welcome Church”, joining an organisation which encourages churches to welcome and support refugees and asylum seekers. A number of church members have for some time been helping with English classes for refugees and supporting them in other ways.

We continued the process of becoming an Eco Church, moving us towards a more environmentally sensitive way of living with a reduced carbon footprint, under the guidance of

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

a Social Responsibility Team. This year we obtained the Bronze Award and are now working towards the Silver. As a visible reminder of our responsibility of stewardship of God’s creation, we have created and nurtured a small Eco church garden.

A pioneering evangelistic initiative launched in 2018 under the responsibility of KMC was Zac’s Kingdom Community, based in the nearby town of Northwich.

Zac’s sustained an impressive range of outreach activities last year, with a notable initiative being ‘Boxes of Hope’, delivered to local families in need, working with Cheshire Food Hub and Fareshare. Under the leadership of Revd Neal Stanton, it continued to foster links with Uganda, encouraging a number of mission partners and charities there.

As we moved towards the conclusion of the project’s initial 5 year term, it became clear to KMC trustees that the current governance structure and financing model (very reliant on grant funding) could not be sustained. In the autumn of 2022 the trustees affirmed the work being done but believed that KMC was not in the best position to nurture the project in future and came to the difficult decision that we would relinquish our role as trustees of the Community from 1st September 2023.

Until then we continued to support the Community and those it served, whilst the Community’s leadership explored the way forward. Although premises previously leased in Northwich were vacated, we are pleased that the Community will continue its valuable work, renamed Hope Community Church and now under the oversight of Hoole Baptist Church.

Members of KMC give generoudly to many local, national and international causes, financially and through service. A prime example is Hope Through Action, helping young people in South Africa develop their potential, with a number of church members appointed as trustees. The church supports and encourages all its members in these personal commitments.

FINANCIAL REVIEW

There are 3 strands to the consolidated results shown in the Financial Statement – Restricted Funds (mainly Zac’s Kingdom Community but including a small Benevolent Fund and the Friendship Café), Designated Funds (The Welcome) and Unrestricted Funds (essentially our core Knutsford operations).

Zac’s Kingdom Community – restricted funds

From the perspective of KMC, this was the final year of operations. A fall in giving by the Community was offset by reduced operating expenditure to leave a deficit of £28k, in line with budget. A key discipline has always been the level of liquid funds, with an eventual closing balance of £12k. Church Council will decide how best to allocate this in line with the original mission objectives and status as restricted funds.

The Welcome – designated funds

Financial activity remained modest and funds held at the year-end grew slightly to £31k.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

We continue to work up our strategy for their use in its area of Knutsford.

Core Knutsford operations – primarily unrestricted funds

An operating surplus of £22k exceeded expectations as rental income recovered strongly and with the benefit of significant donations. Expenditure was broadly in line with budget to leave us with liquid reserves at the year-end a little above our policy range.

This was expected to be a year of recovery as our major item of expenditure, the Circuit Assessment (covering ministerial stipends, pensions and housing and the salaries of Circuit employees) was held down with a subsidy from Circuit reserves. In the current year that subsidy will not be available to the same extent as we return to our full Ministerial complement and we expect to incur a small deficit.

Reserves policy

The capacity of the trustees to either reduce expenditure or find new sources of income is very limited in the short term. Expenditure is managed to agreed budgets but unforeseen falls in income (which is primarily the voluntary giving of members) can occur whilst a 150 year old building can provide unexpected challenges. Reserves provide an appropriate margin of safety and enhance security of employment.

The trustees’ policy is to hold between 3 and 6 months’ budgeted operating expenditure in unrestricted liquid reserves (excluding designated funds).

At the year-end we held unrestricted funds of £141k, equating to just over 6 months of expenditure, slightly above our policy range. Reserves are primarily invested with the Central Board of Finance of the Methodist Church.

GOVERNANCE AND LEADERSHIP

KMC’s governing documents are the Methodist Church Act 1976 and the Constitutional Practice and Discipline (CPD) of the Methodist Church. Its Council has authority over all the church’s ministry and met on 4 occasions during the year, supported by various committees. Members of the Council are the Managing Trustees of the charity but have no beneficial interest.

Appointment to Council is primarily by election by the church members at the annual General Church Meeting (serving for a maximum period of 6 years), together with a number of exofficio members. During the year 11 trustees were also trustees of the Circuit, which is responsible inter alia for ministers’ stipends and housing, funding these by raising assessments on its constituent churches.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

Trustees are supported in their understanding of the role and responsibilities, in particular on first appointment, using guidance issued by the Methodist Church nationally. Any conflicts of interest are properly declared in Council meetings in line with our formal policy.

Chairing the Council is Revd Alan Bradley, appointed as Superintendent of the Circuit, with particular responsibility for KMC, on 1st September 2020. Supporting Alan, primarily with other churches in the Circuit, is Revd Nick Thompson who joined the Circuit ministry team on 1 September 2022. Additional support with other churches was provided by Rev Rod Hill, a parttime supernumerary Minister until his retirement from this post in September 2023.

We were particularly delighted to welcome Revd Sincere Makunde at the beginning of this September as Probationary Minister to support Alan, particularly at KMC and Plumley. An inspiring service was held at KMC, led by the District Chair and supported by many of Sincere’s friends and colleagues who had travelled considerable distances to be present.

Up to the end of August 2023, Revd Neal Stanton served KMC in the specialist role of leading Zac’s Community in Northwich. The trustees pay tribute to the excellent work done under his leadership and extend our best wishes to him and to Jo Wallwork, his administrative support, as they develop Hope Community Church.

The trustees express their thanks to Steve Atkinson who faithfully served the Council in the key role as its Secretary for 14 years until August 2023.

Working with the Minister are elected Church Stewards, drawn from lay members of the church, split between a Leadership team of 8 (elected at the annual church meeting), covering the overall direction and management of the church and a team resourcing worship services and events.

We also have a team of gifted and committed paid members of staff. They are authorised by CPD to be members of the Council but take no part in any discussion on the terms of their employment. Administrative staff are employed directly by KMC whilst other staff (defined as ‘lay workers’) are employed by the Circuit, with their costs charged directly to KMC or indirectly via the assessment process, depending on their role.

We record our thanks to Peter Webb who retired as caretaker in March 2023, although still offering back up support on occasions.

Risk management

The trustees recognise that it is neither possible nor appropriate to seek to eliminate risk entirely. Risk-taking is inherent within the task of communicating and living out the Gospel and we are prepared to embrace risks which aim to advance KMC’s core purposes, whilst minimising those that might have a negative impact.

Flowing from this the trustees have approved a range of policies, reviewed regularly.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

In particular the trustees take their responsibility for safeguarding young people and vulnerable adults very seriously and the Safeguarding Officer is a trustee and reports to each meeting of the Council. Our comprehensive policy, compliant with national guidelines, is reviewed and adopted annually and includes the provision for regular training of staff and volunteers.

Users of the building are required to undertake risk assessments and an updated Health & Safety policy was adopted during the year. A Domestic Abuse Charter issued by the Methodist Church was also adopted.

KMC complies with the General Data Protection Regulations, adopting the standard Data Protection and Privacy policies developed by the Methodist Church.

Insurable risks are covered by a comprehensive insurance policy.

Longer term risks include the increasing age of the church membership and the potential for significant building repair and maintenance costs. To mitigate the former, we seek to grow the church membership, especially through programmes designed to attract younger families. With the latter the building is subject to a formal independent inspection every 5 years. An updated Report was recently received and a schedule of required maintenance is being prepared. All items recorded on the previous Inspection report have been actioned.

Plans for the future

In practice, many of KMC’s initiatives and priorities can be grouped under more than one of our four themes, so some of the categorisation below is not intended to be overly narrow or prescriptive. In the next 12 months we will concentrate on:

Encounter Jesus

We will seek to encourage, support and equip each member of KMC to be more confident in sharing their faith. This will be done through a themed approach to main Sunday services in Q1 2024 and supplemented by material for use within the house groups, based on the Everyone an Evangelist and Talking Jesus course

We will, (as a Circuit), seek to recruit a Children and Families worker to develop our work in these critical areas. Funding is already secured to allow this recruitment to progress early next year.

We will offer the possibility of a 2024 Alpha programme, later in the year, based on the successful programme in Q3/Q4 2023.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

Find Community

Build on the initiative recently started with the Rock Solid youth evenings to provide young people with an opportunity to meet, socialise, have fun and explore their faith in a safe and supportive environment

We will explore ways of extending the capacity of the highly successful Jolly Tots mornings to allow young mums currently on the waiting list to join in.

We will continue to make a priority of supporting House Groups/House Group leaders, providing shared material/resources and looking to increase the percentage of KMC members who are part of a house group by 10%. Additionally, we will actively work on our desire to be an invitational Church by making it easy for newcomers to find/join an appropriate group.

Make a difference

We will actively support, (financially and by direct involvement), the work of Hope Central as it seeks to help those in our community in greatest need.

We will welcome and extend our practical support to refugees temporarily/permanently placed within our local community.

Worshipping God

We will continue to offer a wide range of services and styles of worship, (Sunday and midweek), to help individuals of all ages and backgrounds, worship God in meaningful ways.

We will consciously seek to develop fresh expressions of worship and be willing to experiment with new ideas, particularly to help/reach those who find that traditional patterns of worship do not work for them.

The trustees have due regard to the guidance published by the Charity Commission and consider they have complied with the “public benefit requirement” as defined by the Charities Act 2011 in the year ended 31[st] August 2023 and that our range of programmes will continue to deliver this in the current year.

Acknowledgements

The trustees acknowledge the direction and leadership and example of all who ministered to us during the last year: Alan and his Minister colleagues, visiting ministers, worship leaders and authorised Local Preachers.

We pay tribute to the professionalism and commitment of our staff team.

We also acknowledge the contribution of our many volunteers, without which the mission and ministry of the church could not be sustained.

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Knutsford Methodist Church

Trustees’ Annual Report

for the year ended 31[st] August 2023

Reverend Alan Bradley Minister Date…………………….

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Independent examiner’s report

to the trustees of

Knutsford Methodist Church

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31[st] August 2023 which are set out on pages 15 to 30.

Responsibilities and basis of report

As the charity’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 charity’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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Catherine Hall FCCA DChA Slade & Cooper Limited, Chartered Certified Accountants Beehive Mill, Jersey Street Manchester, M4 6JG Date…………………….

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Knutsford Methodist Church

Statement of Financial Activities

for the year ended 31 August 2023

Unrestricted
funds
Note
£
Income from:
Donations and legacies
3
214,691
Charitable activities
4
-
5
33,609
Investments
6
3,962
Other Income
7
4,260
Total income
256,522
Expenditure on:
Charitable activities
8
231,754
Total expenditure
231,754
12
24,768
Transfer between funds
-
Net movement in funds for the year
24,768
Reconciliation of funds
Total funds brought forward
3,032,601
Total funds carried forward
3,057,369
Other trading activities
Net income/(expenditure) for
the year		 Restricted
funds
£
10,927
33,500
-
606
-
45,033
71,819
71,819
(26,786)
-
(26,786)
46,104
19,318		 Total funds
2023
£
225,618
33,500
33,609
4,568
4,260
301,555
303,573
303,573
(2,018)
-
(2,018)
3,078,705
3,076,687		 Total funds
2022
£
220,066
27,500
30,029
540
5,415
283,550
331,548
331,548
(47,998)
-
(47,998)
3,126,703
3,078,705

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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Knutsford Methodist Church

Balance Sheet

as at 31 August 2023

Note
£
£
Fixed assets
Tangible assets
15
2,884,998
Total fixed assets
2,884,998
Current assets
Debtors
16
30,048
Cash at bank and in hand
17
168,276
Total current assets
198,324
Liabilities
Creditors: amounts falling
due in less than one year
18
(6,635)
Net current assets
191,689
Net assets
3,076,687
Funds of the charity:
Restricted income funds
19
19,318
Unrestricted income funds
20
3,057,369
Total charity funds
3,076,687
2023		 £
£
2,889,756
2,889,756
31,287
159,928
191,215
(2,266)
188,949
3,078,705
46,104
3,032,601
3,078,705
2022		 £
£
2,889,756
2,889,756
31,287
159,928
191,215
(2,266)
188,949
3,078,705
46,104
3,032,601
3,078,705
2022
2,889,756
188,949
3,078,705
46,104
3,032,601
3,078,705

The notes on pages 18 to 30 form part of these accounts.

Approved by the trustees on //____ and signed on their behalf by:

Reverend Alan Bradley (Minister)

David Tomkins (Trustee)

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Knutsford Methodist Church

Statement of Cash Flows for the year ending 31 August 2023

Note
2023
£
Cash provided by/(used in) operating activities
22
3,780
Cash flows from investing activities:
Interest
4,568
Purchase of tangible fixed assets
-
Cash provided by/(used in) investing activities
4,568
8,348
Cash and cash equivalents at the beginning of the year
159,928
Cash and cash equivalents at the end of the year
168,276
Increase/(decrease) in cash and cash
equivalents in the year		 2022
£
(43,254)
540
(4,937)
(4,397)
(47,651)
207,579
159,928

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Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023

1 Accounting policies

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

a Basis of preparation

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), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The charity, Knutsford Methodist Church meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b Preparation of the accounts on a going concern basis

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

No key judgments were made by the trustees which have a significant effect on the accounts.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.

c Income

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

d 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.

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Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

e Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

f 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. Expenditure is classified under the following activity headings:

g Tangible fixed assets

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

Freehold building Based on insurance valuation and not depreciated Office fixtures and fittings 10 years Equipment 3 years

h Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

i Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

j 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.

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Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

k Funds held as agent

As the charity has no control over the funds which they received as an agent, they do not form any part of the balance sheet or statement of financial activities. The movement of the funds is presented in the note only.

l Pensions

Employees of the charity are entitled to join a defined contribution workplace pension scheme. The charity’s contribution is restricted to the contributions disclosed in note 13. There were no outstanding contributions at the year end.

2 Legal status of the charity

The charity is an unincorporated charity, registered as a charity in England & Wales.

3 Income from donations and offerings

Offerings
Donations
Gift Aid
Total
Offerings
Donations
Gift Aid
Total
Income from charitable activities
Grant Income
Total
Previous reporting period
Total by fund 31 August 2022		 Unrestricted
£
145,065
36,232
33,394
214,691
Unrestricted
£
144,239
28,653
33,198
206,090
Unrestricted
£
-
-
-		 Restricted
£
4,605
5,101
1,221
10,927
Restricted
£
9,760
2,416
1,800
13,976
Restricted
£
33,500
33,500
27,500		 Total 2023
£
149,670
41,333
34,615
225,618
Total 2022
£
153,999
31,069
34,998
220,066
Total 2023
£
33,500
33,500
27,500		 Total 2022
£
27,500
27,500

4 Income from charitable activities

20

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

5 Income from other trading activities

Lettings Income
Refreshments
Other fees
Total
Lettings Income
Refreshments
Other fees
Total
6
Investment income
Income from bank deposits
Total by fund 31 August 2022
Previous reporting period		 Unrestricted
£
32,398
151
1,060
33,609
Unrestricted
£
28,808
181
1,040
30,029
Unrestricted
£
3,962
3,962
425		 Restricted
£
-
-
-
-
Restricted
£
-
-
-
-
Restricted
£
606
606
115		 2023
£
32,398
151
1,060
33,609
Total 2022
£
28,808
181
1,040
30,029
Total 2023
£
4,568
4,568
540		 Total 2022
£
540
540

All of the charity's investment income arises from money held in interest bearing deposit accounts. .

7 Other Income

Other Income
Total by fund 31 August 2022		 Unrestricted
£
4,260
4,260
5,415		 Restricted
£
-
-
-		 2023
£
4,260
4,260
5,415		 2022
£
5,415
5,415

21

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

8 Analysis of expenditure on charitable activities

Staff costs (see note 13)
Circuit Assessment
Premises Costs
Depreciation
Administration costs
Grants Payable (see note 10)
Governance costs (see note 9)
Restricted expenditure
Unrestricted expenditure
Analysis of governance costs
Accountancy services (incl. VAT)		 Total 2023
£
94,916
120,000
39,987
4,758
32,098
9,810
2,004
303,573
2023
£
71,819
231,754
303,573
2023
£
2,004
2,004		 Total 2022
£
93,963
134,842
53,508
5,683
27,062
14,620
1,870
331,548
2022
£
75,087
256,461
331,548
2022
£
1,860
1,860

9 Analysis of governance costs

22

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

10 Grant making activities

Name of institution
Methodist Church World Mission
Methodist Church Mission in Britain
Methodist Church Property Fund
Support Fund for Presbyters/Deacons
Leaders of Worship/Preachers Trust
The Welcome Charity		 2023
£
1,500
1,500
1,000
560
250
5,000
9,810		 2022
£
3,000
3,000
2,000
1,120
500
5,000
14,620

All grants have been made to institutions to provide further resources to their mission and ministry.

11 Funds received as agent

Name of Party
Action for Children
Christian Aid
East Cheshire hospice
Easter offering
Friendship café
Hope Central
JMA
Total		 Balance held
at 1
September
2022
-
-
-
-
-
-
-
-		 Amounts
received
321
14
578
8
96
846
62
1,925		 Amounts
paid out
(321)
(14)
(578)
(8)
(96)
(846)
(62)
(1,925)		 Balance
held at 31
August
2023
-
-
-
-
-
-
-
-

23

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

Previous reporting

period

Balance at 1
September
2021
-
Mission in Britain
-
-
Total
-
12
Net income for the year
This is stated after charging:
Depreciation
IE's remuneration - accountancy fees (excl. VAT)
Independent examiner's fees (excl. VAT)
13
Staff costs
Staff costs during the year were as follows:
Wages and salaries
Pension costs
Redundancy
Costs of Layworkers and Pioneer
Pastor, Zac’s House
Name of Party
Hampers of Hope
Tearfund		 Amounts
received
53
77
262
392
2023
£
4,758
1,190
480
2023
£
33,680
1,613
668
58,955
94,916		 Amounts
paid out
(53)
(77)
(262)
(392)
2022
£
5,683
1,100
450
2022
£
31,946
1,467
-
60,550
93,963		 Balance at
31 August
2022
-
-
-
-

No employee has employee benefits in excess of £60,000 (2022: Nil).

The average number of staff employed during the period was 4 (2022: 4).

The key management personnel of the charity comprise the trustees. The total employee benefits of the key management personnel of the charity were £20,758 (2022: £17,935).

24

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

14 Trustee remuneration and expenses, and related party transactions

Amanda Vickers and Jo Wallwork, trustees who are also employees, received total remuneration of £20,758 in the year (2022: £17,935).

Two (2022:4) members of the council received travel and subsistence expenses during the year of £1,952 (2022:£2,284).

Aggregate donations without conditions from related parties were £36,205 (2022: £41,629).

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2022: nil).

The following trustees also served as trustees of the Alderley Edge & Knutsford Methodist Circuit (Charity number: 1127258):

S Atkinson J Bailey Bryan Peak E Hall Revd A Bradley P Freeman P Richards Revd N Stanton C Barratt H Waters D Richards

The costs of the Circuit, which essentially comprise the District Assessment, Ministers’ Stipends and associated employment costs and the costs of the Manses they occupy are allocated between the various churches in the Circuit, linked to their respective membership figures. This is referred to as the Circuit Assessment and for KMC in 2022/23 was £120,000 (2021/22 was £134,842).

The Circuit Budget and the associated Assessments are determined by the trustees of the Circuit, which include representation from each church in the Circuit and currently exceed 30 in number.

The 11 KMC trustees take part in the decision making process of the Circuit but are not in a position to exert a disproportionate influence on its decisions.

As authorised by Methodist CPD, the following layworkers are trustees of KMC:

Peter Freeman

In addition to the layworkers, Revd Neal Stanton is a trustee of KMC, derived from his status as an Authorised Minister. Although KMC bears their cost as they are placed at this church, they are not its employees but rather of the Circuit. In aggregate they received remuneration of £48,469 (including redundancy of £3,533) in the year (2022: £46,484) and reimbursement of expenses of £1,952 (2022: £2,113), funded by KMC. They are not in a position to influence the level of this remuneration.

Staff Remuneration

Members of staff are authorised by CPD to be members of the Council. Their remuneration is set by the Church Council through its consideration and approval of annual budgets with any annual increase usually following national guidelines issued for the remuneration of ministers and lay workers.

Members of staff do not take part in any discussions or vote in Council meetings on the terms and conditions of their employment.

25

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

15 Fixed assets: tangible assets

Cost
At 1 September 2022
Additions
Depreciation
At 1 September 2022
Charge for the year
Net book value
16
Debtors
Other debtors
Prepayments and accrued income
17
Cash at bank and in hand
Cash at bank and on hand
At 31 August 2023
At 31 August 2023
At 31 August 2023
At 31 August 2022		 Building
2,870,187
-
2,870,187
-
-
-
2,870,187
2,870,187		 Furniture
£
31,031
-
31,031
14,742
3,102
17,844
13,187
16,289
2023
£
12,453
17,595
30,048
2023
£
168,276
168,276		 Equipment
£
8,355
-
8,355
5,075
1,656
6,731
1,624
3,280
2022
£
12,717
18,570
31,287
2022
£
159,928
159,928		 Total
£
2,909,573
-
2,909,573
19,817
4,758
24,575
2,884,998
2,889,756

26

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

18 Creditors: amounts falling due within one year

Accruals
Taxation and social security costs		 2023
£
6,471
164
6,635		 2022
£
2,088
178
2,266

19 Analysis of movements in restricted funds

Friendship Café
Benevolent Fund
Total
Friendship Café
Benevolent Fund
Tuesday Fellowship
Total
Northwich Initiative
(Zac's House)
Northwich Initiative
(Zac's House)
Previous reporting
period		 Balance at 1
September
2022
£
40,151
3,652
2,301
46,104
Balance at 1
September
2021
£
67,261
4,738
2,601
567
75,167
 Income
£
40,432
4,601
-
45,033
Income
£
40,375
1,216
-
-
41,591		 Expenditure
£
(68,159)
(3,238)
(422)
(71,819)
Expenditure
£
(72,485)
(2,302)
(300)
-
(75,087)		 Transfers
£
-
-
-
-
Transfers
£
5,000
-
-
(567)
4,433		 Balance at
31 August
2023
£
12,424
5,015
1,879
19,318
Balance at
31 August
2022
£
40,151
3,652
2,301
-
46,104

The transfer in to Zac's House is in respect of an internal grant given from KMC to Zac's.

Name of Fund

Benevolent Fund (Internal Organisation) Zac's House Friendship Café

Description

Payments are made to alleviate crisis situations faced by individuals, both members and non-members of the church, who have a demonstrated need.

Zac's House is a church plant in Northwich, Cheshire. Regular meetings ran by the church for dementia sufferers and their primary

27

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

20 Analysis of movement in unrestricted funds

The Welcome Church
General fund
The Welcome
Previous reporting
period
General fund		 Balance at 1
September
2022
£
3,004,498
28,103
3,032,601
Balance at 1
September
2021
£
3,025,731
25,805
3,051,536
 Income
£
248,731
7,791
256,522
Income
£
234,645
7,314
241,959		 Expenditure
£
(226,754)
(5,000)
(231,754)
Expenditure
£
(251,445)
(5,016)
(256,461)		 Transfers
£
-
-
-
Transfers
£
(4,433)
-
(4,433)		 As at 31
August
2023
£
3,026,475
30,894
3,057,369
As at 31
August
2022
£
3,004,498
28,103
3,032,601

Name of unrestricted fund Description, nature and purposes of the fund

General fund The free reserves after allowing for all designated funds and restricted funds The Welcome Church Included in Trustees Report.

21 Analysis of net assets between funds

Tangible fixed assets
Other net current assets/(liabilities)
Total
Tangible fixed assets
Other net current assets/(liabilities)
Total
Previous reporting
period		 General
fund
£
2,884,998
141,477
3,026,475
General
fund
£
2,889,756
114,742
3,004,498		 Designated
funds
£
-
30,894
30,894
Designated
funds
£
-
28,103
28,103		 Restricted
funds
£
-
19,318
19,318
Restricted
funds
£
-
46,104
46,104		 Total
£
2,884,998
191,689
3,076,687
Total
£
2,889,756
188,949
3,078,705

28

Knutsford Methodist Church

Notes to the accounts for the year ended 31 August 2023 (continued)

22 Reconciliation of net movement in funds to net cash flow from operating activities

Net income/(expenditure) for the year
Adjustments for:
Depreciation charge
Dividends, interest and rents from investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
activities
Net cash provided by/(used in) operating		 2023
£
(2,018)
4,758
(4,568)
1,239
4,369
3,780		 2022
£
(47,998)
5,683
(540)
398
(797)
(43,254)

29

Knutsford Methodist Church

Statement of Financial Activities

for the prior year ended 31 August 2022

Unrestricted
funds
Note
£
Income from:
Donations and legacies
206,090
Charitable activities
-
30,029
Investments
425
Other Income
5,415
Total income
241,959
Expenditure on:
Charitable activities
256,461
Total expenditure
256,461
(14,502)
Transfer between funds
(4,433)
Net movement in funds for the year
(18,935)
Reconciliation of funds
Total funds brought forward
3,051,536
Total funds carried forward
3,032,601
Net income/(expenditure) for
the year
Other trading activities		 Restricted
funds
£
13,976
27,500
-
115
-
41,591
75,087
75,087
(33,496)
4,433
(29,063)
75,167
46,104		 Total funds
2022
£
220,066
27,500
30,029
540
5,415
283,550
331,548
331,548
(47,998)
-
(47,998)
3,126,703
3,078,705		 Total funds
2021
£
283,488
82,212
5,597
196
529
372,022
315,920
315,920
56,102
-
56,102
3,070,601
3,126,703

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

30