## **Shanklin United Reformed Church Charity Annual Report and Financial Statements for the Year**
**Ended 31 December 2020**
**Shanklin United Reformed Church Charity Annual Report for the year ended 31 December 2020**
## **Administrative Information**
Charity Number 1130459
Shanklin URC is situated in the High Street, Shanklin, on the corner of Landguard Road, the building being held in trust by The United Reformed Church (Wessex) Trust Limited.
The Elders of the Church who have served from 1 January 2020 until the date this report was approved are:
Minister Rev Brian Harley Chairman Elected Elders Mr Peter Dawson Mr Alastair Rye Miss Carole Smith Mr Malcolm Stevens Mr Colin Tamcken Treasurer Mr Robin Wightman Secretary Miss Carol Williams Ms Lou-Rosanna Jupe Mrs Yvonne Sparks
## **Structure, Governance and Management**
The Elders Meeting operates under the Basis of Union and the Manual of the United Reformed Church. The Elders are elected from among the Church Members in accordance with the Constitution of Shanklin United Reformed Church. Monthly meetings would normally take place but more regular meetings were held online from late March onwards to help navigate the ever-changing situation.
.
## **Objectives and Activities**
The Elders Meeting exercises oversight of the spiritual life of the local church. Church Members’ Meetings are usually held six times a year but only the January meeting went ahead and all other meetings were cancelled. The Elders continued to meet online and made decisions on behalf of everyone with information shared by email, weekly bulletins, letters and the magazine. The Church Vision Statement reads:
_Our aim is to build up a lively Church as an effective witness to Jesus Christ in the community and to provide a central and flexible resource for all ages and abilities._
The church is part of the Isle of Wight URC Group alongside the congregations at Freshwater and Ryde, though they remain three separate churches served by the one ordained minister. He continues to work 75% of the time for Shanklin and 25% for Ryde, while also giving oversight to the fellowship at Freshwater Bay.
_._
## **Achievements and Performance**
At the end of 2020, the membership of the church stood at 85. Two members have died and four have moved away. There were no new people received into membership due to the lockdown..
Church life was significantly affected by the global pandemic with services being suspended after 15 March under the government restrictions. The first online service was broadcast live on 22 March and since then Sunday services have remained online, being streamed to Facebook. The Tuesday Bible Bite also went online and has continued almost every week. A weekly information sheet with notes on the Sunday theme have been distributed every week by email and by hand to those not online.
.
Charity Number 1130459
Page 1
## **Shanklin United Reformed Church Charity Annual Report for the year ended 31 December 2020**
Various people have been involved in leading worship and developing the technology through Zoom. Small scale services were held in the building on Tuesdays and Saturdays under strict Covid restrictions during October and again in December after the second lockdown but were again suspended before the year end. A special event for families was held on Zoom on 31 October and Messy Church just before Christmas.
All other church activities have sadly been on hold, though contact has been maintained with many families from the CatURpillars toddler group through weekly singing times on Facebook. Much effort has gone into keeping in contact with everyone and sharing news. Members have been very generous in supporting our work over this difficult year and we have continued to support wider mission including our partner church in Uganda and IW Youth For Christ. There has also been additional giving to special appeals for re-carpeting and decoration of the main worship space and also to support struggling teachers in Uganda, the local Foodbank at Harvest and Operation Mobilisation at Christmas.
Whilst the building was closed in the summer, redecoration took place and the new carpet fitted, which was the final phase of a 15-year programme to refurbish the whole premises.
## **Financial Review**
The covid pandemic and the accompanying lookdowns has significantly affected the activities and finance of the church, particularly the General Fund.
The General Fund is used for the day to day running of the Church and associate activities and the accounts show the offertory income (and the tax reclaimed on it) totalled £55,430 this year, which is £5,151 down on last year (£60,851). This reduction is largely due to the suspension of the Sunday services and the loss of the collection monies. We are extremely grateful to our regular congregation who have continued to support us financially, many of whom have switch to paying by standing order. However the loss of the Sunday collections has meant we have not been able to take full advantage of the Gift Aid Small Donations Scheme (GASDS). We would normally claim the full £2,000 available under this scheme each year but during 2020 we could only claim £140.
As a result of the reduction in church activities due to the pandemic the expenses have decreased this year, this taken together with the drop in offertory income has given us a net loss of £3,693 on the General Fund for the year. We are however still left with a reasonably healthy cash balance at the year end of £11,308 (last year £16,601) .
The Youth Worker Fund stands at £9,274 at the year end, the same as last year. We are still considering the best way to move forward with the youth work.
The Maintenance Fund stands at £8,227 at the year end (last year £1.360). We received donations of £18,310 towards the redecoration of the interior of the Church, this together with a grant from the URC Wessex Synod enabled us to redecorate and recarpet the main body of the church building. There is still a small amount of redecoration to be done (the entrance lobby, office, bookshop etc) and this will take place in 2021. We are currently transferring £200 per month from the General Fund to the Maintenance Fund as a provision towards the ongoing maintenance of the Church.
For some time it has been the Church's policy that, funds permitting, we would make donations of at least 10% of the Offertory given to the General Fund (including any Tax Reclaimed). These donations would be made to other charities or individuals as agreed by the Church Meeting. This year we have made gifts slightly in excess of the 10%.
Charity Number 1130459
Page 2
## **Shanklin United Reformed Church Charity**
## **Financial Statements Year Ended 31 December 2020**
## **Treasurers Statement**
I have prepared the financial statements on pages 4 to 11 for the year ended 31 December 2020.
……………………………………….................................................……………………
Colin Tamcken
Date ………………………………….
## **Independent Examiners Report**
I report on the financial statements of Shanklin URC for the year ended 31 December 2020, which are set out on pages 4 to 11.
## **Respective responsibilities**
The church is responsible for the preparation of the financial statements, and considers that the audit requirement of Section 43(2) of the Charities Act 1993 (the Act) does not apply. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under Section 43(7)(b) of the Act, whether particular matters have come to my attention.
## **Basis of Independent Examiner's report**
My examination was carried out in accordance with the General Directions of the Charity Commissioners. An examination includes a review of the accounting records kept by the church and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.
## **Independent Examiner's statement**
In connection with my examination of the church funds, nothing came to my attention which gave me cause to believe otherwise than that the financial statements accord with the accounting records of the church, and that those records satisfied the requirements of the Act. I am not aware of any matter to which attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Signed by the Independent Examiner: ………………………………….....................…….. Date: ………….........………..
Name and address of the Independent Examiner:
## **Authorisation Statement**
The Annual Report and Financial Statements on pages 1 to 11 were approved by the Shanklin URC Church Meeting on ………….............................……and signed on its behalf by
Name………………………………………………............….. Signature................................................................................
Charity Number 1130459
Page 3
## **Shanklin United Reformed Church Charity Statement of Financial Activities for the Year Ended 31 December 2020**
|**Notes**
**Income**
Offertory Cash
Gift Aid
Tax reclaimed
Other Income
Bookshop
Shanklin URC Youth
Dividends and Interest
Miscellaneous
Caturpillars
Grants
**Total Income**
**Payments**
Ministry & Mission Fund
Bookshop
Shanklin URC Youth
Manse
Church
Donations
6
Miscellaneous
Caturpillars
Depreciation
2
Youthworker
**Total Payments**
**Transfers Between Funds**
**Net Income**
**Fund Balances Brought Forward**
**Fund Balances Carried Forward**|**General**
**Fund**
**£**
17,706
30,198
7,526
1,598
57,028
2
2,191
463
**59,684**
36,864
2,900
12,078
5,990
3,145
0
**60,977**
-2,400
-3,693
17,144
**13,451**||**Designated**
**Funds**
**£**
8,260
8,050
2,000
0
18,310
1,629
0
0
472
**20,411**
1,348
25
13,843
303
**15,519**
2,400
7,292
7,387
**14,679**||**Restricted**
**Funds**
**£**
0
0
0
0
0
0
0
**0**
0
**0**
0
0
9,274
**9,274**|**Total**
**£**
25,966
38,248
9,526
1,598
75,338
1,629
0
2
2,191
472
463
**80,095**
36,864
1,348
25
2,900
25,921
5,990
3,145
303
0
0
**76,496**
0
3,599
33,805
**37,404**|**2019**
**Total**
**£**
19,450
31,580
9,822
5,969
66,821
2,968
0
2
2,952
1,667
429
**74,839**
36,600
2,918
200
2,811
21,218
8,440
5,615
1,437
136
0
**79,375**
0
-4,536
38,342
**33,806**|**2019**|
|---|---|---|---|---|---|---|---|---|
|||||||||**Total**|
The notes on pages 6 to 11 form part of this Financial Statement
Charity Number 1130459
Page 4
## **Shanklin United Reformed Church Charity Balance Sheet as at 31 December 2020**
|**Fixed Assets**
**Current Assets**
Debtors
Bookshop Stock
Cash at bank
Shanklin URC Youth Account
Bookshop accounts
Cash in Hand
**Total Current Assets**
**Current Liabilities**
Agency Collections
Creditors
**Total Current Liabilities**
**Net Assets**
**Church Funds**
General Fund
Bookshop
Shanklin URC Youth Account
Maintenance Fund
Caturpillars Fund
Youth Worker Fund
**Total Church Funds**|**Notes**
2
5
**Notes**
3
3
3|**General**
**Fund**
**£**
0
2592
11308
0
13,900
449
0
449
**13,451**
**General**
**Fund**
**£**
13451
**13,451**||**Designated**
**Funds**
**£**
25
1850
8202
809
2941
852
14,679
0
**14,679**
**Designated**
**Funds**
**£**
4791
809
8227
852
**14,679**||**Restricted**
**Fund**
**£**
9274
9,274
0
**9,274**
**Restricted**
**Fund**
**£**
9274
**9,274**|**Total**
**£**
0
2,617
1,850
28,784
809
2,941
852
37,853
449
0
449
**37,404**
**Total**
**£**
13,451
4,791
809
8,227
852
9,274
**37,404**|**2019**
**Total**
**£**
0
1,202
1,587
27,235
834
2,923
683
34,465
660
0
660
**33,805**
**2019**
**Total**
**£**
17,144
4,510
834
1,360
683
9,274
**33,805**|**2019**|
|---|---|---|---|---|---|---|---|---|---|
||||||||||**Total**|
|||||||||||
The notes on pages 6 to 11 form part of this Financial Statement
Charity Number 1130459
Page 5
## **Shanklin United Reformed Church Charity General Fund Statement for the Year Ended 31 December 2020**
## **General Fund**
## **Receipts**
## **Payments**
|**Notes**
**2020**
**2019**
Offertory - Cash
17,706
19,449
- Gift Aid
30,198
31,580
Tax Reclaimed
7,526
9,822
Legacy
0
0
Bookshop Donations
1,150
1,550
Link
20
0
Catering
428
419
Weddings
0
0
57,028
62,820
**Dividends and Interest**
Investments
0
0
Bank Interest
2
2
2
2
**Miscellaneous**
Photocopying/Tapes
0
11
Ryde URC Expenses Contribution
1,385
1,460
CBB's
150
400
Fellowship Lunch
568
616
Freedom in Christ Books
10
17
Paul Jones Concert
0
268
Other
78
180
2,191
2,952
**Grants**
Other Grant
0
0
Manse Repairs Grant
463
429
463
429
**Transfers Between Funds**
0
0
**Total Receipts**
**59,684**
**66,203**
**Net Income - General Fund**
**-3,693**
**-3,675**|Ministry & Mission Fund
**Manse**
Water
Insurance
Council Tax
Maintenance
**Church**
Electricity
Gas
Water
Insurance
Maintenance (Garden)
Piano Tuning
PA/Projection Expenses
Cleaning
Mileage/Travel costs
Fixed Car Allowance
Post and Telephone
**Donations**
Donations Made
**Miscellaneous**
Audit
Pulpit Supply
Copyright Licence
Office Requisites
Teaching Materials
Catering
Messy Church
Fellowship Lunch
Paul Jones Concert
Other
**Transfers Between Funds**
Transfer to Maintenance Fund
**Depreciation**
**Total Payments**|**Notes**
**2020**
**2019**
36,864
36,600
489
511
0
0
1,948
1,871
463
429
2,900
2,811
1,339
1,526
863
1,324
225
456
4,291
4,410
0
118
0
50
1,850
1,050
560
1,830
698
1,497
1,366
1,366
886
249
12,078
13,876
5
5,990
8,440
0
125
340
505
945
754
935
1,723
180
348
0
430
0
280
581
615
0
595
164
240
3,145
5,615
2,400
2,400
2,400
2,400
2
0
136
**63,377**
**69,878**|
|---|---|---|
|||5
2|
Charity Number 1130459
Page 6
## **Shanklin URC Bookshop Profit and Loss 1st January 2020 to 31st December 2020**
|||**2020**|||**2019**||
|---|---|---|---|---|---|---|
|**Sales**|||1,629|||2,968|
|Opening Stock|1,587|||1,533|||
|Purchases|456|||1,286|||
|Less closing stock|2,043
1,850||193|2,819
1,587||1,232|
|Gross Profit|||1,436|||1,736|
|**Expenses**|||||||
|Bags/labels|0|||0|||
|Staff|0|||115|||
|General Expenses|5|||5|||
|Postage & Stationery|0|||16|||
|Shop Maintenance|0||5|0||136|
|Less: Donations to General Fund|||1,150|||1,550|
|Net Profit|||281|||50|
|**Bookshop Assets**|||||||
|Stock|||1,850|||1,587|
|Current Account|||2,911|||2,893|
|Cash in Hand|||30|||30|
||||4,791|||4,510|
|**Shanklin**
**Designated Fund Statement**||**URC Youth**
**for the Year**
**2020**||**2019**
**Account**
**Ended 31st December 2020**|||
|**Receipts**|||||||
|Basement Café|||0|||0|
|Transfer from General Fund|||0|||0|
|Other Receipts|||0|||0|
|Compasion|||0|||0|
|Total Receipts|||0|||0|
|**Payments**|||||||
|Basement Café Costs|0|||0|||
|Trips Out|0|||0|||
|Resources|0|||0|||
|Compassion|25|||200|||
|Miscellaneous|0||25|0||200|
||||||||
|**Net Income/Deficit**|||-25|||-200|
|**Youth Accounts**|||||||
|Cash in Hand|||0|||0|
|Cash at Bank|||809|||834|
||||809|||834|
Charity Number 1130459
Page 7
## **Shanklin United Reformed Church Charity Designated Fund Statements for the Year Ended 31 December 2020**
## **Maintenance Fund**
|**Receipts**
Gift Day Donation - Cash
Gift Day Donation - Gift Aid
Tax Reclaimed
Gift from Ryde URC
Transfer From General Fund
**Net Income/Deficit**|**2020**
**2019**
**Payments**
8,260
1
Fire/Intruder Alarms
8,050
0
Boiler Servicing Etc
2,000
0
Other Repairs
0
4,000
Building Work
Asbestos Survey
2,400
2,400
**20,710**
**6,401**
**6,867**
**-941**|**2020**
**2019**
191
593
180
180
696
483
12,236
6,086
540
0
**13,843**
**7,342**|
|---|---|---|
## **Caturpillars Fund**
|**Receipts**
Subscriptions
Donations
Other Income
**Net Income/Deficit**|**2020**
**2019**
**Payments**
472
1,632
Food/Drink
0
35
Equipment
0
0
Stationery
Craft Materials
Donations
To Shanklin URC (Gen Fund)
**472**
**1,667**
**169**
**230**|**2020**
**2019**
92
598
70
144
10
5
0
302
55
78
76
310
**303**
**1,437**|
|---|---|---|
## **Shanklin United Reformed Church Charity Restricted Fund Statements for the Year Ended 31 December 2020**
## **Youth Worker Fund**
|**Receipts**
Donations - Cash
Donations - Gift Aid
Tax Reclaimed
Grants Received
**Net Income/Deficit**|**2020**
**2019**
**Payments**
0
0
Misc Expenses
0
0
Travel Costs
0
0
0
0
**0**
**0**
**0**
**0**|**2020**
**2019**
0
0
0
0
**0**
**0**|
|---|---|---|
Charity Number 1130459
Page 8
## **Shanklin United Reformed Church Charity Notes to the Financial Statements Year Ended 31 December 2020**
## **1 Accounting Policies**
## **1a Basis of Accounting**
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005) issued by the Charity Commission, and the United Reformed Church guidance. The accruals basis of accounting has been adopted and the principal accounting policies set out below are applied consistently.
## **1b Fund Accounting**
Unrestricted funds are available for use at the discretion of the church in furtherance of its charitable objectives. Designated funds are unrestricted funds that have been set aside by the church for a particular purpose. Restricted funds are subjected to restrictions on their expenditure imposed by the donor, or contained in the terms of a grant.
## **1c Tangible Fixed Assets**
Freehold property: The Trustees of the church and manse buildings are the URC Wessex Synod Trust . Expenditure incurred on the church and manse is written off in the year it is incurred.
Equipment: Depreciation is provided at the following annual rates calculated to write off assets over their estimated useful lives: Fixtures and Fittings
Coffee House Equipment 20% straight line (over 5 years) Other - Furniture Etc 10% straight line (over 10 years)
## **1d Incoming Resources**
All voluntary giving is included in the financial statements for the period in which it is received. Donations under Gift Aid plus the associated tax recovery are recognised as income when the donation is received. Legacies are accounted for when their receipt is certain and can be properly quantified. All other income is generally recognised when it is receivable.
## **1e Resources Expended**
The URC Ministry & Mission Fund contribution is paid regularly and is included in the financial statements for the year to which it relates.
Resources expended are recognised in the period to which they are incurred and include attributable VAT which cannot be recovered. They are allocated to the particular activity to which they relate.
As most of the management and activity of the church is carried out by volunteers, this intangible cost is not included in the financial statements as this voluntary contribution to the life of the church is incalculable.
## **1f Taxation**
As part of the United Reformed Church, the church is an excepted charity within the meaning of the Taxes Acts. Accordingly it is potentially exempt from taxation in respect of income and capital gains received to the extent that such income or gains are applied to exclusively charitable purposes. No provision for taxation has been made in these financial statements.
Charity Number 1130459
Page 9
**Shanklin United Reformed Church Charity Notes to the Financial Statements Year Ended 31 December 2020**
|**2 Fixed Assets**||**2020**|||**2019**||
|---|---|---|---|---|---|---|
||**Fixtures and**||**Fittings**|**Fixtures and**||**Fittings**|
|**Cost**|||||||
|At 1 January||50,450|||50,450||
|Additions|||0|||0|
|Disposals|||0|||0|
|At 31 December||50,450|||50,450||
|**Depreciation**|||||||
|At 1 January||50,450|||50,314||
|Charge for Year|||0||136||
|Disposals in Year|||0|||0|
|At 31 December||50,450|||50,450||
|**Net Book Value**|||||||
|At 31 December|||0|||0|
Church - freehold valued for insurance purposes during 2020 at £7,865,750 (2019 £7,210,000)
Manse at 10 Dracaena Gardens - Insurance for the Manse is now paid by URC (Wessex) Trust Limited
The church and the manse are vested in the URC (Wessex) Trust Limited
Contents, Furniture Bookshop stock etc, valued for insurance purposes during 2020 at £164,934 (2019 £160,428)
## **3 Analysis of Net Assets by Funds**
All funds comprise of cash held either in hand or at the bank except for the following:
|Fixed Assets
Current Assets - Stock
- Debtors
- Cash in hand/bank
Current Liabilities - Creditors|**General Fund**
0
0
2,592
11,308
-449
13,451||**Bookshop**|
|---|---|---|---|
||||0
1,850
0
2,941
0
4,791|
## **4 Transfers Between Funds**
|**ransfers Between Funds**|||
|---|---|---|
||**2020**|**2019**|
|Transfer from General Fund to Maintenance Fund|2,400|2,400|
Charity Number 1130459
Page 10
**Shanklin United Reformed Church Charity Notes to the Financial Statements Year Ended 31 December 2020**
## **5 Breakdown of Donations and Agency Collections**
|**Donations**
IW Youth for Christ
Romans One Eleven Trust
GEAR
JCWGVA (God Pod)
Street Pastors
CWTIS
Wight Churches
Evangelical Alliance
URC Wessex Trust - Zambia Appeal
Lionheart
OM UK
Jules Riding
Persecuted Church
Release International
Barnabas Fund
Open Doors
Elam UK
Offertory Giving|**2020**
**2019**
1,200
1,200
1,750
1,900
500
500
500
500
1,000
2,000
40
40
150
150
100
100
250
0
0
1,000
0
200
0
250
200
300
0
100
150
0
150
200
**5,990**
**8,440**
55,430
60,851|
|---|---|
|**Agency Collections**
Romans One Eleven Trust
Christian Aid
IW Foodbank
Tear Fund
Street Pastors
Christmas Appeals
Operation Mobilisation - 2020
Salvation Army - 2019
for Homeless Shelter|**2020**
**2019**
840
85
0
0
225
0
0
241
0
160
450
0
131
661
**1,646**
**1,147**|
|---|---|
## **Agency Collections - Current Liabilities**
(Balance not paid over at Year End)
|Operation Mobilisation|449|0|
|---|---|---|
|Salvation Army|0|661|
|Foodbank|0|0|
**Donations:** These are donations made to other Charities or individuals from the Church's general funds.
It is the Church's policy that, funds permitting, these donations should be at least 10% of the Offertory giving to the General Fund (including any Tax Reclaimed).
**Agency Collections:** These are donations received in response to specific appeals for other Charities, Organisations or Individuals.
These donations are then passed on in full to the appropriate Charity, Organisation or Individual.
Charity Number 1130459
Page 11