Company number: 7028764 Charity Number: 1133336
## Church of the Nazarene British Isles South District
Report and financial statements For the year ended 30 September 2024
## Church of the Nazarene British Isles South District
## Reference and administrative information
for the year ended 30 September 2024
## **Company number** 7028764
## **Charity number** 1133336
## **Registered office and operational address**
Church of the Nazarene British Isles South District 112 Cranbourne Road Ashton-under-Lyne OL7 9BW
**Trustees** Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:
Rev Carl McCann Chair Mr Steven Francis Leach Secretary Clare McMullen Grace Ogbewi Rev Erica Tuxworth Rev Svetlana Khobnya Revd Deirdre Brower-Latz
No Trustees held title to property belonging to the charity during the reporting period or at the date of approval.
## **Bankers**
Reliance Bank Faith House 23-24 Lovat Lane London EC3R 8EB
## **Auditors**
Slade & Cooper Limited Beehive Mill, Jersey St, Ancoats, Manchester, M4 6JG
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## Church of the Nazarene British Isles South District
## Trustees’ annual report
## for the year ended 30 September 2024
The trustees present their report and the audited financial statements for the year ended 30 September 2024. Included within the trustees’ report is the directors’ report as required by company law.
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and activities**
The principal object of the charity is the advancement of Christian faith and its practice, especially by the means of and in accordance with the principles of the International church of the Nazarene.
The basis of our Christian faith as portrayed through the Bible is that we can come to know God personally, in Jesus Christ, who is both human and divine, and is the person in whom all that is lost and broken can be redeemed and who inspires his followers to work for a world that is a better place for all.
Within the covenant relationship of the Church of the Nazarene we value the freedom of the local church to discern for itself its practices and policies within the broad scope of Nazarene belief, in making Christlike disciples. We stress the importance of individual response in faith, and we understand that each Christian is to play their part in advancing Christian faith and witness. Because of our emphasis on personal faith and the freedom of the local church we are committed to religious freedom for people of all Christian traditions and other faiths.
The District’s overriding function is to provide encouragement, advice and support to member churches so that they too may maximise their ability to achieve their own charitable objective of making Jesus Christ known to particular individuals and to society in general.
The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.
## **Volunteers**
In the wider context, the District is substantially dependent for its work on the contribution of volunteers. At church level, the work of stipendiary and paid staff is supported at all levels by volunteers both in terms of governance and management and in the practical delivery. Such is the magnitude of the contribution made by volunteers that it is impossible to quantify.
This pattern is reflected throughout the District where many people commit significant time to help with the outworking of the District’s objectives. In the District itself, volunteers provide valuable support mainly through membership of standing committees, unpaid office holders, and the officers responsible for
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Church of the Nazarene British Isles South District
## Trustees’ annual report
## for the year ended 30 September 2024
Nazarene Youth International, Nazarene Missions International, Breakthru holidays, the Ladies weekend, and other conferences for training as and when required.
## **Achievements and performance**
The charity's main activities and who it tries to help are described below. All its charitable activities focus on the support and encouragement of the local Churches of the Nazarene which form the District, and are undertaken to further Church of the Nazarene British Isles South District’s charitable purposes for the public benefit.
- The District operates as an umbrella resource body for its member churches, which are all separate charities.
- Throughout 2023-24 the District continued to support its member churches, regional association, and college by providing grants, practical support, guidance, and expertise.
- Appropriate provision and support for Ministers of Religion, and other church leaders within our denomination. Including support for Ministers’ families in the form of a yearly Pastoral Household’s Retreat.
- Support for local churches in the form of grants for pastoral aid, maintenance of buildings, or missional activities.
- Training for Ministers of Religion in the form of a Pastors summer school and other more localised gatherings of Ministers throughout the year
- Pastoral and church reviews where churches are encouraged to review their work and their relationship with Pastoral leadership.
- Organisation of District holiday, Ladies retreat, and Youth Holiday where the church comes together for encouragement, fellowship, teaching and prayer.
- Financial support to Nazarene Theological College, Nazarene Missions International, Nazarene Youth International, which support youth, mission, education, outreach and fellowship within the church.
## **Beneficiaries of our services**
The District operates as an umbrella resource body for its member churches, which are all separate charities. Consequently, our beneficiaries are largely Pastors, local churches, Nazarene Theological College, Nazarene Missions International, and Nazarene Youth International.
## **Financial review**
The Statement of Financial Activities shows a net increase in funds for the year ending 30th September 2024 of £1,638 excluding unrealised gains and losses on investments (2023: Increase £885,779). Expenditure has been kept under careful control because of the continuing difficult economic climate.
The consolidated incoming resources of the ordinary activities of the Church of the Nazarene British Isles South District including NMI, Events/SS Ministries, NYI and the work at Salford totalled £466,582 (2023: £1,520,653) with resources expended of £464,944 (2023: £634,874).
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## Church of the Nazarene British Isles South District
## Trustees’ annual report
## for the year ended 30 September 2024
Our principal sources of income remain that of rental income from our investment properties and budgets received from our member churches. These properties are rented out at market rates, except for the Fresh Ground manse. It is hoped that the income from this manse will move towards market rent over a period of time.
Decreased tithes and offerings in local churches, resulted in lower budgets received.
Strategy is to invest in developing new churches, strengthening existing churches. The development of a strong property rental income stream is seen as a key factor in sustaining this.
We do not conduct significant fundraising activities from the general public.
## **Grants**
Each Nazarene church is self-financing; the District provides additional investment into local churches to help develop and promote mission innovation and risk taking to achieve our strategic goals. Church grants are assessed annually, and emphasis is placed not just on each church’s finances but also its plans and achievements in making Jesus known in its locality.
## **Going concern**
The charity does not rely on donations from the public, and we have sufficient cash reserves to fund our activities for at least a further year, without the need for loans or overdrafts. Our investment portfolio of properties is also strong.
The trustees are fully aware of the movement in value of its investments but consider that the balance sheet will remain strong in the long-term, with positive net current assets.
## **Reserves policy**
The Trustees have reviewed the charity’s needs for reserves in line with the guidance issued by the Charity Commission and have a reserves policy which will be reviewed annually. The Trustees believe that, in addition to known commitments, the charity needs to hold at least six months (26 weeks) running costs in free reserves, given the anticipated flow of funding, to ensure that the charity can run efficiently.
The total reserves of the charity at the end of the year were £6,331,700 (2023: £6,191,986) of which some were restricted. The Capital Fund in note 19 relates to fixed assets used to support the ongoing work of the charity and is not a readily liquid asset.
## **Plans for the future**
- The trustees of the charity will continue to hold consultations with local church boards to enable the charity to dialogue more effectively with our main stakeholders.
- The District Treasurer will continue to encourage churches to submit their budgets on a monthly basis to enable us to be less dependent toward the year end for finance.
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## Church of the Nazarene British Isles South District
## Trustees’ annual report
## for the year ended 30 September 2024
- The District Advisory Board will encourage more sale of surplus properties and reinvestment in income generating assets.
- The trustees will continue to look to support compassionate ministries at home and abroad.
## **Structure, governance and management**
The Church of the Nazarene British Isles South District (the District) is an association, consisting of the Nazarene churches within the majority of England and Wales. As a membership organisation, the District holds an annual Assembly at which member churches are represented through their delegates, alongside ministers and the members of the Assembly.
The District acts through an Advisory Board which meets a minimum of four times a year and is made up of elected members, office holders and persons co-opted for particular skills. The Advisory Board helps to set the broad strategic direction of the District.
Recent years had seen disruption to standard working practises due to Covid 19. However, this past year has seen a return to standard practise, including a normal nomination procedure, followed by an in-person District Assembly, including voting for all leadership positions.
All necessary reports were collated as per normal procedure, and were communicated digitally both in advance, and available at the Assembly.
The District charity is administered and managed by the Advisory Board as Charity Trustees.
The Governing Document of the District is a memorandum of association which may be amended by a Resolution of the Assembly approved by not less than two thirds of the Representative Members, as defined in the memorandum of association, present and voting. The memorandum of association was last revised in June 2017 and a copy is available from the registered office.
## **Recruitment and Training of Trustees**
Trustees are elected by the District Assembly from a list of suitable nominations provided by the Nomination Committee and are usually familiar with many aspects of the District’s work prior to appointment. All Trustees receive an induction into the work of the District by meeting the District Superintendent and being advised of the general nature of their work.
They receive financial statements and other relevant documentation including a copy of the Charity Commission’s publication CC3, The Essential Trustee. Formal training on financial matters is provided as appropriate. The organisation is a charitable company limited by guarantee, incorporated on 24[th] September 2009 and registered as a charity on 17th December 2010.
The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees on 30th September 2024 was 129 (2023:129). The members of the charity are entitled to voting rights and have no beneficial interest in the charity.
The Trustees give their time voluntarily and only the District Superintendent receives benefits from the Charity.
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Church of the Nazarene British Isles South District
## Trustees’ annual report
for the year ended 30 September 2024
## **Related parties and relationships with other organisations**
Any and all related parties are clearly identified in the notes to the Accounts.
## **Remuneration policy for key management personnel**
Remuneration for the District Superintendent, Secretary, Treasurer and Assistant Treasurer is guided by the Finance Committee. Other Key management personnel are guided by the Trustee Advisory Board.
## **Risk management**
The Trustees are aware of the recommendations to examine the major strategic, business, operational and reputational risks which the Charity faces and have procedures in place to identify and manage them.
## **Funds held as custodian trustee on behalf of others**
The District acts as property trustees for 44 open and closed churches. Arrangements are made for the safe custody of deeds and documents, with each set stored in a labelled packet, and included in an index system. The names of the churches and other charities for whom the Company acts as a Custodian Trustee are available at: www.nazarene.org.uk The organisations are all Church of the Nazarene congregations and therefore, have objects that are compatible with the charitable objects of the Company **.**
## **Statement of responsibilities of the trustees**
The trustees (who are also directors of Church of the Nazarene British Isles South District for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets
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## Church of the Nazarene British Isles South District
## Trustees’ annual report
## for the year ended 30 September 2024
of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- There is no relevant audit information of which the charitable company’s auditors are unaware
- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Auditors**
Slade & Cooper Ltd were re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime of the Companies Act 2006.
The trustees’ annual report has been approved by the trustees on 26/ 02/ 2025 and signed on their behalf by
Rev Carl McCann District Superintendent
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Independent auditors’ report
## to the members of
## Church of the Nazarene British Isles South District
## **Opinion**
We have audited the financial statements of Church of the Nazarene British Isles South District (the ‘charitable company’) for the year ended 30 September 2024, which comprise the Statement of Financial Activities (including the income and expenditure account), the Balance Sheet, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 30 September 2024, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we
8
## **Independent Auditor’s Report (continued)**
identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Annual Report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
9
## **Independent Auditor’s Report (continued)**
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
- enquiry of management and those charged with governance around actual and potential litigation and claims.
- enquiry of the charity's staff, management and those charged with governance to identify any instances of non-compliance with laws and regulations.
- reviewing minutes of meetings of those charged with governance.
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.
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## **Independent Auditor’s Report (continued)**
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Chinwe Jennifer Daniel FCCA DChA
_for and on behalf of_ Slade & Cooper Limited Statutory Auditors Beehive Mill Jersey Street Manchester M4 6JG Date: 28/05/2025
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Church of the Nazarene British Isles South District
statement of Financial Activities
(including Income and Expenditure account)
for the year ended 30 September 2024
Unrestritted
funds
Restritted
funds
Total funds
2024
Total funds
2023
Note
Income from:
Donations and legacies
69.340
130.859
200,199
1,293,972
Charitable activities-
20,283
49,679
69,962
66,899
Investments
196,421
196,421
159,782
Total Income
286,044
180,538
466,582
1,520,653
Expenditure on:
Raising funds
75,584
75,584
52,726
Charitable activities:
272,221
117,139
389,360
582,148
Total expendlture
347,805
117,139
464,944
634,874
Net income/(expenditure)
before net gains/{losses) on
investments
(61.761)
63.399
1,638
885.779
Gains/(losses) on investments
138.076
138,076
34,861
Net income/(expenditure) for
the year
76.315
63.399
139.714
920,640
Transfer between funds
Net movement in funds for the year
76.315
63.399
139.714
920.640
Reconciliation of funds
Total funds brought forward as
previously reported
6,144,075
47,911
6,191,986
5,271,346
Total funds brought forward
6,144,075
47,911
6,191,986
5,271,346
Total funds carried forward
6.220.390
111.310
6.331.700
6.191.986
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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## Church of the Nazarene British Isles South District Company number 7028764
## Balance sheet as at 30 September 2024
|Note
£
£
**Fixed assets**
Tangible assets
12
414,320
Investments
13
4,803,355
**Total fixed assets**
**5,217,675**
**Current assets**
Debtors
14
120,929
Cash at bank and in hand
15
1,047,395
**Total current assets**
**1,168,324**
**Liabilities**
Creditors: amounts falling
due in less than one year
16
(54,299)
**Net current assets**
**1,114,025**
**Net assets**
**6,331,700**
**The funds of the charity:**
Restricted income funds
18
111,310
Designated income funds
19
4,094,991
Unrestricted income funds
19
2,125,399
**Total unrestricted funds**
19
6,220,390
**Total charity funds**
**6,331,700**
2024|_£_
_£_
_393,079_
_4,665,279_
**_5,058,358_**
_142,114_
_1,051,569_
**_1,193,683_**
_(60,055)_
**_1,133,628_**
**_6,191,986_**
_47,911_
4,095,246
2,048,829
_6,144,075_
**_6,191,986_**
_2023_|
|---|---|
These accounts are prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The notes on pages 15 to 30 form part of these accounts.
Approved by the trustees on 26/ 02/ 2025 and signed on their behalf by:
Rev Carl McCann (Trustee)
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Church of the Nazarene British Isles South District
statement of Cash Flows
for the year ending 30 September 2024
Note
2024
2023
Cash provided by/(used in) operating artivities 21
(166,851)
665,816
Cash flows from investing artivities..
Dividends, interest, and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Donation of investment assets
196,421
(33,744)
159,782
163,809
(890,000)
Cash provided by/(used in) investing activities
162,677
(566,409)
Increase/{decrease) in cash and cash
equivalents in the year
(4, 174)
99,407
Cash and cash equivalents at the beginning of the year
1.051,569
952,162
Cash and cash equivalents at the end of the year
1,047,395
1,051,569
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Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024
Accounting policies
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the
preparation of the financial statements are a5 follows:
Corresponding amounts for the preceding year are drawn from unaudited accounts.
a Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by
Charities: Statement of Recommended Prartice 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
Ortober 2019 {Charities SORP (FRS 102)), the Financial Reporting Standard
applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally
Accepted Accounting Prartice.
Church of the Nazarene British Isles South Distrirt meets the definition of a public beneffit 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 charitable company's ability
to continue as a going concern.
The trustees have made no key judgments 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 itemls) of income have been met, it is probable that the income will be received and
the amount can be measured reliably.
Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised
when the charity has entitlement to the funds, any performance conditions attached to the grants
have been met, it is probable that the income will be received and the amount can be measured
reliably and is not deferred.
For legacies, entitlement is taken as the earfier of the date on which either= the charity is aware that
probate has been granted, the estate has been finalised and notification has been made by the
executor{s) to the charity that a distribution will be made. or when a distribution is received from the
estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be
measured reliably and the charity has been notified of the executor's intention to make a distribution.
Where legacies have been notified to the charity. or the charity is aware of the granting of probate,
and the criteria for income recognition have not been met, then the legacy is a treated as a contingent
asset and disclosed if material.
Income received in advance of a provision of a specified service is deferred until the criteria for
income recognition are met.
15
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
d Donated servlces and facllltles
Donated professional services and donated facilities are recognised as income when the charity has
control over the item, any conditions associated with the donated item have been met, the receipt of
economic benefit from the use by the charity of the item is probable and that economic benefit can be
measured reliably. In accordance with the Charities SORP {FRS 102), general volunteer time 15 not
recognised. refer to the trustees, annual report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the
value of the gift to the charity which is the amount the charity would have been willing to pay to
obtain services or facilities of equivalent economic benefit on the open market. a corresponding
amount is then recognised in expenditure in the period of receipt.
e Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured
reliably by the charity; this is nomially upon notification of the interest paid or payable by the Bank.
f Fund accounting
Unrestrirted funds are available to spend on artivities that further any of the purposes of 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.
Restrirted 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.
g Expenditure and irrecoverable VAT
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:
Costs of raising funds comprise the costs of renting out property.
Expenditure on charitable artivities includes the costs undertaken to further the purposes of
the charity and their associated support costs.
other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the attivity for which the expenditure was incurred.
h 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..
Land and buildings
Office fixtures and equipment
Motor Vehicle
250/0
25Wo
16
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
i Fixed asset investments
Investments are a forni of basic financial instrument and are initially recognised at their transaction
value and subsequently measured at their fair value as at the balance sheet date using the closing
quoted market price. The stalement of financial attivities includes the net gains and losses arising on
revaluation and disposals throughout the year.
The Charity does not acquire put options. derivatives or other complex financial instrurnents.
The main form of financial risk faced by the charity is that of volatility in equity markets and
investment markets due to wider economic conditions, the attitude of investors to investment risk,
and changes in sentiment concerning equities and within particular settors or sub sectors.
j Investment property
Investment properties are initially recorded at cost, which includes purchase price and any directly
attibutable expenditure. They are reviewed by the charity trustees on a yearly basis, and this will be
suplemented by a 3 yearly evaluation of residential properties using AVM tool, and 5 yearly rolling
evaluation of non-residential properties by a Chartered Surveyor. Any material changes in fair value
are recognised in profit or loss.
k 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.
m 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.
n Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial
instruments. Basic financial instruments are initially recognised at transaction value and subsequently
measured at their settlement value with the exception of bank loans which are subsequently
measured at amortised cost using the effective interest methi)d.
17
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
o Pensions
Employees of the charity a entitled to join a defined contribution 'money purchase, scheme. The
charity's contribution is restrirted to the contributions disclosed in note 9. Contributions outstanding at
the year end was £nil (2022: £nil}
Legal status of the charity
The charity is a company limited by guarantee registered in England and Wales and has no share capital.
In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per
member of the charity. The registered ofFice address is disclosed on page l.
Income from donations and legacies
Unrestritted
Restrirted
Totsl 2024
District Budget
Donations
Nazarene Missions International
Nazarene Youth International
Other Income
Salford
57.238
7,906
57,238
7,906
43.901
6,421
4,196
80,537
43,901
6,421
4,196
80,537
Total
69.340
130,859
200,199
Income fmm donations and legacies (previous reporting period)
Unrestricted
Re5trirted
Total 2023
District Budget
Donated investment pmpertie5
Donations
Nazarene Missions International
Nazarene Youth Intemational
Other Income
Salford
54,751
890.000
228.873
54, 751
890,000
228,873
54,953
5,469
8,050
51,876
54, 953
5.469
8,050
51.876
Total
1,181.674
112.298
1.293,972
18
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
Income from charitable activities
Unrestricted
Restritted
Total 2024
Breakthru income
Conference Fees etc
49,679
49,679
20,283
20.283
Total
20,283
49,679
69.962
Income from charltable artlvltles (prevlous reportlng perlod)
Unrestricted
Restrirted
Total 2023
Conference Fees etc
Events Committee income
15,241
15,241
51,658
51.658
Total
15.241
51.658
66,899
Investment income
Unrestricted
Restricted
2024
2023
Dividends
Bank Interest
Rent and property income
Loan interest
12,042
19,631
161,506
3.242
12,042
19,631
161,506
3,242
11,407
9,575
133,800
5.000
Total
196.421
196.421
159,782
All investment income is unrestricted.
Cost of ralslng funds
Unrestricted
Restrirted
2024
2023
Property Costs
75.584
75.584
52,726
75,584
75,584
52,726
19
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
Analysis of expenditure on charitable activities
Support
Costs
other Direct
Costs
staff Costs
Totsl 2024
Total 2023
Unrestricted Funds
Staff costs
Audit Fees
Buildings Depreciation
District Assembly
District Board
District Office
Evangelism and
Promotion
Gift Aid Scheme costs
Insurance
Legal Fees
Support Grants:
Local Mission
73.558
14.904
6,000
12,503
16,358
4.040
23.662
88.462
6,000
12,503
16,358
4,040
23,662
76,548
6,000
4,066
19,651
2,826
17,934
12,195
12,195
13,418
647
9.062
647
9.062
1,032
7,653
78,754
78,754
209,409
Unrestricted Total
73.558
178.125
251,683
358,537
Desginated Funds
Ladies Retreat Fund
20,538
20,538
14,482
Designated Total
20.538
20,538
14,482
Restricted Funds
Breakthru
NMI Council &
NYI Expenses
Salford
49,392
257
12.081
55,409
49,392
257
12,081
55,409
49,263
84,422
14,203
61,241
Restrirted Total
117.139
117,139
209,129
Total
73.558
315.802
389.360
582,148
20
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
Analysis of expenditure on charitable activities previous reportsng period
Support
Costs
Other
Dirert Costs
Staff Costs
Total 2023
Total 2021
Unrestrirted Funds
staff costs
Audit Fees
8uildings Depreciation
District Assembly
District Board
District Office
Evongelism and
Promotion
Insurance
Legal Fees
Support Grants..
Local Mission
Donated Assets
60,985
15,563
6.000
4,066
19.651
2.826
17.934
76,548
6,000
4,066
19,651
2,826
17,934
68,928
5,400
5,135
13,272
2,262
9,375
13,418
1.032
7,653
13,418
1,032
7,653
12,275
557
8,858
209.409
209,409
32,898
2,560,672
Unrestrirted Total
60,985
297.552
358,537
2,719,632
Desginated Funds
Ladies Retreat Fund
14.482
14,482
13,532
Deslgnated Total
14,482
14,482
13,532
Restrirted Funds
Events Committee
Expenses
NMI Council &
Convention
49.263
49,263
48,247
84.422
84,422
65,500
NYI Expenses
14.203
14,203
1,188
Salford
Worldwide Missions
61.241
61,241
46, 730
30,740
Restrirted Total
209.129
209,129
192,405
21
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
Net income/{expenditure) for the year
This is Stated after chargingl(crediting):
2024
2023
Depreciation
Loss/(profit) on disposal of fixed assets
Auditor's remuneration audit fees
12,503
4,066
25,025
6,000
6,000
Staff costs
Staff costs during the year were as follows:
2024
2023
Wages and salaries
Social security costs
Pension costs
68,225
2,259
3,074
55,665
2,495
2,372
Total
73,558
60,532
No employees has employee benefits in excess of £60,000 (2023.. Nil).
The average number of staff employed during the period was 9 {2023- 6).
The average full time equivalent number of staff employed during the period was 5.4 (2023: 3).
10 Trustee remuneration and expenses. and related party transactions
One (one) trustee, Revd. C. Mccann, was paid remuneration of £37,210 (2023.. £33,518), rent of £9,600
{2023.' £9,600) and utility costs of £4,340 (2023: £5.0481 for use of their home as the Distrirt Manse
and pension contributions of £1,787 (2023.. £1,623) during the year. Rev C Mccann had the use of a car
owned by the Distritt from his appointment; the net book value of this car was £10,688 at the year end.
PI ID for Nl paid on benefits to Rev Mccann amounted to £1,294 {2023.. £1,231). Three trustees (2023-
two) were reimbursed expenses of £8.258 {2023: £9,572) during the year. The remuneration and
expenses are paid to trustees in accordance with the authority given by the Articles of Association.
There are no donations from related parties which are outside the normal course of business and no
restritted donations from related parties.
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 (2023: nil).
22
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
11 Corporation tax
The charity is exempt from tax on income and gains falling within Chapter 3 of Part I l of the Corporation
Tax Act 2010 or Section 256 of the Taxation of Charyeable Gains Act 1992 to the extent that these are
applied to its charitable objects. No tax charges have arisen in the charity.
12 Fixed assets: tangible assets
Land
& Buildings
Motor
Vehicles
Fixtures, fittings
and equipment
Total
Cost
At l October 2023
Additions
Disposal
406.645
10,995
14,250
(10,995)
417,640
33,744
(10,9951
19,494
At 30 September 2024
406,645
14,250
19,494
440,389
Depreciation
At i October 2023
Charge for the year
Disposal
13.566
4.066
10,995
3,563
{ 10,995)
24,561
12,503
(10,9951
4.874
At 30 September 2024
17,632
3,563
4,874
26,069
Net book value
At 30 September 2024
389,013
10,687
14,620
414,320
At 30 September 2023
393.079
393,079
The land and buildings are churches or manses owned (or partly owned) by the Distrirt, but used by the
following churches- Salford and Portsmouth.
23
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
13 Investments
Listed
investments
Investment
properties
Total
Narket value at the start of the year
Add net gain/lloss) on revaluation
244,999
23.676
4,420,280
114,400
4,665,279
138,076
Carrying amount at 30 September 2024
268,675
4,534,680
4,803,355
Investments at fair value comprised..
2024
2023
Investment Properties
COIF Income Units
4,534,680
268,675
4,420,280
244,999
4,803,355
4,665,279
All investments shown above are held at fair value.
The investment properties are reviewed on a rolling basis and the trusteees are satisfied that there is no
matrial change from previous year.
Nost of properties are rented out at market rates to provide income, with exception at Fresh Ground,
which remains at nominal rent to give the Fresh Ground Church time to move to finnacial stability.
Investements with COIF are stated at Market Value at balance sheet date.
24
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
14 Debtors
2024
2023
Church Loans
other debtors
Prepayments and accrued income
88,282
24,291
8,356
115,470
17,848
8, 796
120,929
142,114
Church loan recoverable after more than one year is £75,982 {2023- 4,070).
Church Loans
Ashton
Bristol
Clapham
Total
Cost
At l October 2023
Interest
Repaid
61,860
3,091
(28.630)
3.611
150
(1,800)
50.000
115,471
3,241
(30,4301
At 30 September 2024
36.321
1.961
50,000
88,282
15 Cash at bank and In hand
2024
2023
Cash at bank and on hand
1.047,395
1.051,569
1,047,395
1,051,569
25
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
16 Credltors: amounts falllng due wlthln one year
2024
2023
Funds held as an intermediary agent
Other creditors and accruals
Deferred income
28,260
21,137
4,902
30,087
29,968
54,299
60,055
17 Analysis of funds received as agent
Balance held
at30
September
2024
Balance held
at l October
2023
Funds
received
Funds paid
out
Nazarene Missions International
NMBF
NTC
Salford
standard Life
Sundry
Youth Ministry
10.979
2,069
6.605
(2.490)
8,561
3.066
1,297
25,971
11,114
19,453
5,488
55,279
1,284
2,781
(24,893)
(10,179)
(19,693)
{6,009)
(56,933)
{2,462)
{3,028)
12,057
3,004
6,365
(3,011)
6,907
1,888
1,050
30,087
121,370
(123,197)
28,260
Deferred income
2024
2023
Deferred grant brought forward
Grant received
Released to income from charitable activities
598
4.902
(598)
Deferred grant carried forward
4,902
26
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
18 Analysis of movements in restricted funds
Daiance ai
30
September
2024
Balance at I
October 2023
Income
Expenditure
Transfers
Breakthrou
BISD NMI Fund
BISD NYI Fund
Salford Church
9.694
3,436
17.262
17.519
49.679
43,901
6.421
80.537
(49,392)
(257)
(12,0811
(55,409)
9,981
47,080
11,602
42,647
Total
47,911
180,538
(117,139)
111,310
Previous reporting
period
30
September
2023
Balance at i
October 2022
Income
Expenditure
Transfers
BISD Events/ Sunday
School Ministries Fund
BISD NMI Fund
BISD NYI Furjd
Salford Church
7,299
32,905
25,996
26.884
51.658
54,953
5.469
51.876
(49.263)
(84,422)
(14,203)
(61,241)
9,694
3,436
17,262
17,519
93,084
163,956
(209, 129)
47,911
Name of
Description. nature and purposes of the fund
Breakthrou
Consolidated account funds of British Isles South District Sunday School
Ministrie5/Events.
Consolidated account funds of British Isles South District Nazarene Mis5ion5
Intemational.
Consolidated account funds of British Isles South District Nazane Youth Intemational.
BISD NMI Fund
BISD NYI Fund
Consolidated account funds of British Isles South Distrirt, held to record the financial
records of the charitable activities of The Naz in Salford.
Salford Church
27
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 {continued)
19 Analysis of movement in unrestricted funds
A5at30
September
2024
Balance at I
October 2023
Gains /
ILosse51
Income
Expenditure
Transfers
Unrestrlrted Funds
General Fund
Designated Funds
Capital Fund
Ladles Retreat Fund
Oldham Church Fund
Revaluation reserve
Tot41 Deglgnated Funds
2,048,829
265,761
1327,2671
138,076
2,125,399
2,850,699
4,328
57,816
L 182 403
4,095,246
2,850,699
4,073
57,816
1 182 403
4,094,991
20,283
120,5381
20,283
120,5381
Total Unregtrlcted Fundg
6,144,075
286,044
1347,8051
138,076
6.220,390
Prevlous reportlng perlod
Asat30
September
2023
Balance at i
October 2022
Gains /
(Losses)
Income
Expendlture
Transfers
Unrestrlrted Funds
General Fund
Deslgnated Fund5
Capital Fund
Ladles Retreat Fund
Oldham Church Fund
Revaluation serve
Total Deslgnated Funds
1,141,591
1,283,64Q
(411,263)
34,861
2,048,829
2,850,699
3,569
2,850,699
4,328
57,816
1 182 403
4,095,246
15,241
57,816
(14,482)
1 182 403
4,036,671
73,057
(14,482)
Total Unrestrleted Funds
5,178,262
1,356,697
(425, 745)
34,861
6,144,075
Name of unrestrlrted fund
Descrlptlon, nature and purposes of the fund
General fund
The free re5erve5 after allowing for all designated fund5
Property fund linked to fixed assets. Funds become liouid assets on sale of property
Capital Fun
Ladies Retreat FLJnd
Designated fLJnds belonging to the annLJal Ladies retreat- a weekend away for ladies.
Revaluation reserve
The increase in values of the investment properties.
28
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
20 Analysis of net assets between funds
General
funds
Designated
funds
Restricted
funds
Total
Tangible fixed assets
Fixed asset investments
Net current assets/(liabilities}
414.320
4,803,355
(3.092.276)
414,320
4,803,355
1,114,025
4.094.991
111,310
Total
2,125,399
4,094,991
111,310
6,331,700
21 Reconciliation of net movement in funds to net cash flow from operating activities
2024
2023
Net income/(expenditure) for the year
Adjustments for:
Depreciation charge
Los51{profit) on sale of fixed assets
(Gains)/losses on investments
Dividends, interest and rents from investment5
Decrease/(increase) in debtors
Increase/{decrease) in creditors
139,714
920,640
12.503
4,066
25,025
(34,861)
(159, 782)
(118,667)
29,395
(138,076)
{196,421)
21,185
(5,756)
Net cash provided by/(used in) operating
{166,851)
665,816
29
Church of the Nazarene British Isles South District
Notes to the accounts for the year ended 30 September 2024 (continued)
22 Prior year Statement of Financial Artivities (including Income and Expenditure account)
Unrestritted
funds
Restrirted Total funds
funds
2023
Total funds
2022
Income from:
Donations and legacies
1.181.674
112.298
1,293,972
733,894
Charitable activities..
15.241
51.658
66,899
62,916
Investments
159.782
159,782
115,344
Total income
1.356.697
163.956
1.520,653
912 154
Expenditure on:
Raising funds
52.726
52,726
55,121
Charitable activities..
373.019
209.129
582,148
2,925,569
Total expenditure
425.745
209.129
634.874
2,980.690
Net income/(expenditure) before
net gains/(losses) on investments
930.952
(45.173)
885,779
(2,068,536)
Gains/(losses) on investments
34,861
34,861
(25,388)
Net income/(expenditure) for the
year
965,813
(45,173)
920,640
(2,093,924)
Transfer between funds
Other recognlsed galns/(losses}:
Gains/(losses on revaluation of fixed
421,900
Net movement In funds for the year
965,813
(45,173)
920,640
(1,672,024)
Reconclllatlon of funds
Total funds brought forward as
previously reported
5.178.262
93.084
5,271,346
6,943,370
Total funds brought forward
5.178.262
93.084
5,271,346
6,943,370
Total funds carried forward
6.144.075
47.911
6.191,986
5,271.346
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
30