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2020-12-31-accounts

Central United Reformed Church, Sheffield, Charity

Charity Number 1130271

FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 DECEMBER 2020

Version 1.0 (Final)

Central United Reformed Church (Charity) Financial Statements EOY 2020 United Reformed Church Central +

CONTENTS

1 Church Information............................................................................................................................ 3
1.1
Address: .................................................................................................................................... 3
1.2
Registered Charity Number ......................................................................................................... 3
1.3
Trustees of the Charity ............................................................................................................... 3
1.4
Bankers ..................................................................................................................................... 3
2 Annual Trustees’ Report for the Year Ending 31 December 2020 .......................................................... 4
2.1
Objectives and Activities of Central United Reformed Church......................................................... 4
2.2
Review of Achievements and Performance ................................................................................... 5
2.3
Financial Review ......................................................................................................................... 6
2.4
Structure, Governance and Management ..................................................................................... 7
3 Statement of Financial Activities (Year Ending 31stDecember 2020) ..................................................... 8
Income and Expenditure ........................................................................................................................ 8
4 Balance Sheet ................................................................................................................................... 9
5 Appendix: Notes to the Financial Statements ..................................................................................... 10
Note 1.
Principal Accounting Policies .................................................................................................. 10
Note 2.
Offerings .............................................................................................................................. 12
Note 3.
Donations and Sundry Income............................................................................................... 12
Note 4.
Ministry ................................................................................................................................ 12
Note 5.
Premises Costs ..................................................................................................................... 12
Note 6.
Other Expenses .................................................................................................................... 13
Note 7.
Charitable and Special Gifts ................................................................................................... 13
Note 8.
Human Resources Costs ........................................................................................................ 13
Note 9.
Tangible Fixed Assets............................................................................................................ 14
Note 10.
Investments ..................................................................................................................... 15
Note 11.
Debtors and Prepayments.................................................................................................. 15
Note 12.
Bank and Building Society Balances .................................................................................... 16
Note 13.
Analysis of Net Assets between Funds ................................................................................ 16
6 Independent Examiner’s Report to the Members and Trustees of Central United Reformed Church ....... 17

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1 Church Information

1.1 Address:

60 Norfolk Street Sheffield S1 2JB

1.2 Registered Charity Number

1130271

1.3 Trustees of the Charity

Mrs E D Flaherty (Secretary) Mr S Atkinson Mrs B Bagshaw Mrs J P Barnes (until Dec 2020) Rev S K Copley Ms A G Flaherty (Treasurer) Mrs A C Hammond Mrs A P Judge Rev Z A Orr Mr J M Riley Mrs M A Riley (until Dec 2019) Mrs H Wignall Mr D J Williams

1.4 Bankers

HSBC 17 Church Street Sheffield S1 1HH

Coventry Building Society 24-26 Norfolk Row Sheffield S1 2PA

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2 Annual Trustees’ Report for the Year Ending 31 December 2020

The Trustees present this report together with the financial statements for the year ending 31 December 2020.

2.1 Objectives and Activities of Central United Reformed Church

Central United Reformed Church is part of the United Reformed Church in the United Kingdom. The objective of the Charity is the advancement of the Christian faith for the benefit of the public in accordance with the Scheme of Union of the United Reformed Church.

The church activities include (but are not limited to):

In carrying out these activities, the church has careful regard to the public benefit guidance published by the Charity Commission (PB1-PB3).

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2.2 Review of Achievements and Performance

At the start of 2020 Central United Reformed Church maintained our role within the wider church across the city and within the Team ministry structure.

In January, we participated in the Week for Christian Unity and commemorated Holocaust Memorial Day with prayers of remembrance.

The month of March started on a very positive note as we celebrated the International World Day of Prayer with a number of other churches across the City. However, on the 15th March we had to close the doors of our building due COVID -19 restrictions laid down by the Government. By the 23rd of March the City and the whole country was in lock down.

Our regular Sunday morning worship moved online, as did many of our other activities, such as Bible Study and Chats. The Norfolk Room Café remained closed throughout the year and no user groups were allowed to use the building. Our other mission activities ceased as did most involved direct work with individuals.

The work on the Manor Church and Community Project was also affected by the lock down restrictions, but they were able to achieve their aim for the William Temple Church to become a multiuse building. The newly refurbished building, now called William Temple Park Centre, continued to host some activities although their numbers were greatly reduced and the groups met outdoors.

The Croft House project continued but was also impacted by the building closing due to lockdown.

The Ministry Team continue to work on a new way of worshipping, which many people have engaged with both online and by telephone. However, others for whatever reason have stayed away and many are still coping with the isolation which comes from being vulnerable. We acknowledge that it has been a difficult time for all of us.

Although consideration was given to opening the Church building again in early autumn, the surge in coronavirus infections meant that the year ended with worship still online and working towards a ‘new normal’.

2.2.1 Volunteers and Fund-raising Activities

Due to the closure of the Church building, there have been very limited opportunities for volunteers to participate and almost all fund-raising activities have been put on hold.

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2.3 Financial Review

The Statement of Financial Activities shows the analysis of three separate funds, which are not formally designated or restricted.

The General Fund shows the Finances and resources for the general running of the church and its activities. A transfer from reserves was made to cover other costs incurred during the year of £31,132 (2019 £28,306) due to delays in payment by the shop leaseholder.

The Capital Fund accumulates the gains and losses on revaluation of investments and fixed assets, against which is charged depreciation for the rest of the year.

Rental income from shops and building society interest is accounted for in the Rent Fund. This income is initially used for the wider church and local/national charities but is increasingly having to support the day to day running of the church due to the decline in active members and therefore giving.

2.3.1 Property Developments

The investment properties at Croft House and Chapel Walk were professionally revalued at 31 Dec 2016 and the trustees do not consider that the values have changed significantly during this year.

2.3.2 Reserves

Reserves are maintained for the church purposes and possible future developments. The Rent Fund is held in the Coventry Building Society accounts. Freely available reserves at 31 December 2020, excluding fixed assets and investments, amounted to £103,828 (2019 £92,844).

2.3.3 Investment Policy

The investment policy adopted by the church aims for a balance of capital growth and income through ethical investments. The investments are held for the church by the Yorkshire Congregational Union and CCLA Investment Management Limited.

2.3.4 Risk Review

The trustees are aware of the increasing average age of the congregation and, as the members are a major source of revenue funding, the church is aware of its future financial vulnerability in this regard.

A subcommittee of the trustees has been established to review the major risks to which the charity is exposed, report and make recommendations to the trustees and church meeting on any mitigating actions required.

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2.4 Structure, Governance and Management

2.4.1 Governing Document

Central United Reformed Church is registered with the Charity Commission (as of June 2009) under charity number 1130271. It is governed under trusts distilled from the United Reformed Church Acts of Parliament (1872 and 1982) and the Scheme of Union (1972).

2.4.2 Organisational Structure

The main councils of the church are the Church Meeting and the Elders Meeting. The Church Meeting is required to make arrangements for the proper maintenance of buildings and the general oversight of all the financial responsibilities of the church and to adopt the annual financial report. The day-to-day finance of the church is delegated to the Church Treasurer and Assistants. The maintenance of the buildings is delegated to the Management Committee, a subcommittee of the Trustees. The trustees are appointed by virtue of them being eligible Elders and specific Officers of the church.

2.4.3 Trustees of the Charity

The trustees are listed in Section 1.3.

2.4.4 Statement of the Church Meeting and Trustees’ Responsibilities

The church is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of Central United Reformed Church and of its financial activities during that period. In preparing those financial statements, the church meeting is required to:

The Treasurer is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the church. The Treasurer is also responsible for safeguarding the assets of the church. Therefore, he or she is responsible for taking reasonable steps to prevent and detect fraud and other irregularities, together with the Trustees, the Management Committee and Church Meeting.

The church has taken advantage of disclosure exemptions in preparing this report by virtue of being a small charity.

The Trustees declare that they have approved the above Trustees’ Report.

Signed on behalf of the Trustees:

Rev Z Orr (Chair of Trustees)

Ms A G Flaherty (Treasurer)

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3 Statement of Financial Activities (Year Ending 31[st] December 2020)

Income and Expenditure

General Rent Capital Fund Total Total
Fund Fund 2020 2019
£ £ £ £ £
INCOME
Donations and legacies
Offerings (Note 2) £21,886 £21,886 £30,103
Donations and sundry income (Note 3) £5,173 £5,173 £7,911
Other activities
Refreshments £3,960 £3,960 £16,830
Lettings/rent £6,637 £77,175 £83,812 £106,320
Other income £19,613 -
Coronavirus furlough grants £19,613
Income from investments £4,413 £539 £4,952 £1,182
Total income £61,682 £77,714 - £139,396 £162,346
EXPENDITURE
Expenditure on Charitable activities
Charitable and special gifts (Note 7) £210 £210 £1,077
Other expenditure
Ministry (Note 4) £42,601 £42,601 £48,870
Premises costs (Note 5) £70,907 £70,907 £79,368
Refreshments cost £583 £583 £3,841
Other expenses (Note 6) £10,581 £10,581 £14,083
Depreciation £4,085 £4,085 £4,223
Total expenditure £124,672 £210 £4,085 £128,967 £151,462
Net gains/(losses) on investments £1,980 £1,980 £5,024
(Note 10)
Net income/(expenditure) £(62,990) £77,504 £(2,105) £12,409 £15,908
Transfers between funds
City Centre weighting adjustment £41,807 £(41,807) £41,807 £(41,807) - - -
Additional transfers £31,132 £(31,132) £31,132 £(31,132) - - -
Gains/(losses) on revaluation
of fixed assets (Note 9) - - -
Net movement in funds £9,949 £4,565 £(2,105) £12,409 £15,908
Funds brought forward £21,182 £75,116 £2,466,512 £2,562,810 £2,546,902
Funds carried forward £31,131 £79,681 £2,464,407 £2,575,219 £2,562,810

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4 Balance Sheet

At 31 December 2020
2019 2019
Notes £ £ £ £
FIXED ASSETS
Tangible assets 9 £736,154 £740,239
Investments 10 £1,287,462 £1,287,462 £1,285,482
Total Fixed Assets £2,023,616 £ 2,025,721 £ 2,025,721
CURRENT ASSETS
Stock £800 £750
Debtors and prepayments 11 £12,731 £18,607
Investments - YCU Deposits £447,775 £444,245
Building Society deposits 12 £79,681 £75,116
Bank and cash balances 12 £19,560 £10,135
£560,547 £548,853
CURRENT LIABILITIES
Creditors and accruals - due within one year Creditors and accruals - due within one year £8,944 £11,764
NET CURRENT ASSETS £551,603 £537,089
TOTAL ASSETS LESS CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES £2 £2,575,219 £2,562,810
REPRESENTED BY:
General Fund 13 £31,131 £21,182
Rent Fund 13 £79,681 £75,116
Capital Fund 13 £2,464,407 £2,464,407 £2,466,512
TOTAL RESERVES £2 £2,575,219 £ 2 £ 2,562,810
Approved by the Elders’ Meeting on and signed on behalf of the Trustees by: Approved by the Elders’ Meeting on and signed on behalf of the Trustees by: Approved by the Elders’ Meeting on and signed on behalf of the Trustees by: Approved by the Elders’ Meeting on and signed on behalf of the Trustees by:

Rev S K Copley on behalf of Rev Z. Orr (Chairman of Trustees)

Ms A G Flaherty (Treasurer)

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5 Appendix: Notes to the Financial Statements

Note 1. Principal Accounting Policies

Note 1.1 Basis of Preparation

The financial statements of this charity, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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), Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared under the historical cost convention with the exception of investments which are included at fair value, as modified by the revaluation of certain financial assets and liabilities.

The financial statements are prepared in sterling (GBP), which is the functional currency of the entity. The accruals basis of accounting has been adopted.

The charity has taken advantage of the disclosure exemption regarding the requirements of Section 7 Statement of Cash Flows, as permitted by FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

Note 1.2 Judgements and Key Sources of Estimation Uncertainty

The preparation of the Financial Statements requires the trustees to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continuously reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the opinion of the trustees, there are no areas of judgement or key sources of estimation uncertainty that have a significant effect on the financial statements, other than the accounting policies detailed herein.

Note 1.3 Classification of Funds

Funds are classified as follows:

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Note 1.4 Recognition of Income

Income is included in the Statement of Financial Activities when the charity becomes entitled to the resources, it is probable that the income will be received, and the monetary value can be measured reliably. All voluntary giving is included for the period in which it is received.

Note 1.5 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred and includes attributable VAT which cannot be recovered.

Note 1.6 Fixed Assets and Depreciation

Tangible fixed assets for use by the charity are initially recorded at cost and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value of their date of revaluation less any subsequent accumulated depreciation.

Depreciation has been calculated to write down the cost or valuation of an asset, less its residual value, over its expected useful life using the following rates:

Note 1.7 Investment Property

Investment property is initially recorded at cost, which includes the purchase price and any directly attributable expenditure. Investment property is then revalued to its fair value at each reporting date and any changes in fair value are recognised in the statement of financial activities.

Note 1.8 Valuation of Fixed Assets

Tangible fixed assets will be revalued every 5 years in accordance with the Charities SORP (FRS 102). These assets were valued on 31 Dec 2016, and therefore the next planned evaluation is due in December 2021.

The Charity may choose to revalue earlier than this date if exceptional circumstances occur which warrant this in the judgement of the Trustees or at the recommendation of the Treasurer.

Note 1.9 Investments and investment income

Investments are included at their fair value (mid-market value) and any changes to fair value are recognised in the statement of financial activities.

Note 1.10 Stocks

Stocks of stationery, cleaning materials and refreshments are stated at the lower of cost and net realisable value.

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Note 2. Offerings

Income from Offerings 2020 2019
Gift Aid Donations £16,659 £20,036
Envelopes £1,987 £296
Cash £529 £2,263
Income tax recovered £2,711 £7,508
£21,886 £30,103

Note 3. Donations and Sundry Income

Donations and sundry income Donations and sundry income 2020 2019
Church fund raising and sundry donations £1,989 £4,902
Income from solar panels £3,184 £3,009
Total £5,173 £7,911
Note 4. Ministry
Ministry 2020 2019
Ministry & Mission fund contributions £31,296 £35,988
Synod levy - £700
Sheffield team contribution £11,016 £11,016
Pulpit Supply £120 £450
Motor & travel Motor & travel £169 £716
Total £42,601 £48,870

Note 5. Premises Costs

Premises Costs 2020 2019
Salaries and employment £41,631 £44,470
Water rates £925 £1,483
Insurance £7,278 £7,068
Heating & lighting £8,759 £19,228
Repairs & servicing £12,314 £7,119
Total £70,907 £79,368

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Note 6. Other Expenses

Other expenses 2020 2019
Organ & choir £475 £350
Printing, stationery and publicity £4,715 £4,209
Telephone £975 £960
Legal & professional £1,671 £3,604
Church activities £665 £1,228
Donations £305 £1,018
Miscellaneous expenses £1,775 £2,714
Total £10,581 £14,083

Note 7. Charitable and Special Gifts

Charitable & special gifts 2020 2019
International charities - Romania - £373
Benevolent (Special Income) £210 £704
Total £210 £1,077
Note 8.
Human Resources Costs
(Included in Note 5 as Salaries & employment costs)
Salaries and employment costs breakdown 2020 2019
Remuneration paid to 4 (2019 – 4) employees £40,203 £41,747
Employer’s National Insurance - -
Pension Contributions £3,253 £2,723
Furlough grants receivable £(19,613) -

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Note 9. Tangible Fixed Assets

Tangible Fixed Assets Freehold Fixtures, Solar Panels Total
Property fittings &
(Church & Hall) equipment
At valuation £725,000 £17,000 £28,460 £770,460
Additions - - - -
Disposals - - - -
Revaluations - - - -
Value at 31 December 2020 £725,000 £17,000 £28,460 £770,460
Depreciation
Cumulative depreciation at 1 Jan 2020 - £4,607 £25,614 £30,221
Charge for the year - £1,239 £2,846 £4,085
Revaluations - - - -
Total depreciation at 31 December 2020 - £5,846 £28,460 £34,306
Net book value
At 31 December 2020 £725,000 £11,154 - £736,154
At 31 December 2019 £725,000 £12,393 £2,846 £740,239

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Note 10. Investments

Investments
Listed Investment
Investments Properties Total
Carrying value at 1/1/2020 £35,482 £1,250,000 £1,285,482
Additions - - -
Disposals - - -
Revaluation gain £1,980 - £1,980
Carrying value at 31/12/2020 £37,462 £1,250,000 £1,287,462
Investments recognised on the UK Stock exchange
Held by Brewin Dolphin
(on behalf of Yorkshire Congregational 2020 Market 2019 Market
Union) Holding Initial Cost Value Value
COIF Income units 1,540.69 £2,014 £28,120 £26,487
Charibond Inc. 3,207.69 £4,000 £4,025 £3,979
Artemis Fund Managers Global Inc. 320.62 £263 £256 £270
Held by CCLA Investment Management Ltd
COIF Units 281 £375 £5,061 £4,746
Total £6,652 £37,462 £35,482
2020 2019
Dividend income £882 £633

Note 10.1 Investment Properties

Investment properties comprise: 42-52 Chapel Walk and Croft House. The properties were revalued at 31 December 2016 by Fowler Sandford, Chartered Surveyors, at market value and the trustees do not consider that the values have changed significantly during this year.

Note 11. Debtors and Prepayments

Debtors and Prepayments
2020 2019
Income tax recoverable £3,324 £5,494
Sundry debtors and prepayments £9,407 £13,113
£12,731 £18,607

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Note 12. Bank and Building Society Balances

2020 2019
Cash Deposits
Held by Coventry Building Society A/c Number
Charities Account 571 £77,911 £73,360
Charities Account 586 £1,770 £1,756
Total £79,681 £75,116
Held By HSBC
Current Account *049 £19,139 £6,302
Money Manager Account *614 £46 £46
Covenants Money Manager Account *054 £1 £1
Refreshments Community Account *563 £353 £3,765
Traidcraft Community Account *092 £21 £21
Total £19,560 £10,135

Note 13. Analysis of Net Assets between Funds

Analysis of net assets between funds (31/12/2020) General Fund Rent Fund Capital Fund
Tangible Fixed Assets - - £736,154
Investments - - £1,287,462
YCU Manse Capital deposit - - £440,791
Building Society Deposits - £79,681 -
Other net current assets £40,075 - -
Current liabilities £(8,944) - -
£31,131 £79,681 £2,464,407

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6 Independent Examiner’s Report to the Members and Trustees of Central United Reformed Church

I report to the members on my examination of the accounts of the Central United Reformed Church Sheffield Charity for the year ended 31 December 2020, which are set out on pages 8 to 16.

Responsibilities and basis of report

As described on page 7, the church meeting and trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). They consider that an audit is not required for this year under section 144(2) of the 2011 Act and that an independent examination is needed. I report in respect of my examination of the accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

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

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.

R A Millard FCA Anderton House Sheffield, S35 0FU September 2020

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