The Methodist Church Finchley Methodist Church Circuit Number 35135 Registered Charity Number 1133907 TRUSTEES. REPORT AND AccouNrs YEAR ENDED 31 August 2023 REGISTERED CHURCH OFFICE Finch]ey M¢thodist Church 227 Ballards Lane Finchley London N3 INB
TRUSTEES Rev Martin Wellings (Chair) Christine Luv818 David French (Treasurer) tkjrothy Moir Barbara Heath8rington Deborah Lynch-shyllon Lindi Lewis Rev Ben Tsumasi Henry Forde Shaun Sanders Hannah Lynch Shyllon Annu Varghese Mary Campbell Dr Sarada Vijeralnam Tony Gossett Dr Latha Thangari Dr Rajan Vijeratnam INDEPENDENT EXAMINER David Evans 38 Galley Lane, Alkley, Herts. . EN5 4AJ. BANKERS HSBC pic 333 Vauxhatl Bridge Road London SW1V 1EJ Central Finance Board of the Methodist Church 9 Bonhill stet London EC2A 4PE
TRUSTEES. REPORT The bustees present their report and the financial statements for the year erKled 31 ALtgust 2023. These have been prepared in accordance with the Chartties Act 2011. STRUCTURE. GOVERNANCE AND MANAGEMENT Finchley Methodist Church is a constÉtuent Society of the Bamet and Queensbury Methodist Circuit, based in the London Borough of Bamet. The activities of the Church are govemed by The Constitutional Practice and Discipline of the Methodist Church which incorporates the Methodist Church Act 1976. The goveming body is the Church Council, whose members are the ministers (presbyters and deacons) appointed to the Circuit by the Methodist Conference, officers and representatives elected annually by the General Church Meeting, a Circuit Steward and COpted members. The Superintendent Minister chairs the Church Council. The Church Council meets a minimum of twice a year and agrees on the broad strategy and areas of activity for the Church. including consideration of grant making investment, reserves and risk management policies and perfornan. The more detsiled management of the Church is entrusted to the Church Stewards, elected annually by the General Church Meeting, and responsible with the Minister in pastoral charge for the day-to-day lrfe and work of the Church. OBELECTIVES AND ACTivmES The principal objective of the Church is Ihe advancement of the Christian faith in accordance with the doctrinal starKlards and discipline of the Methodist Church, (Section 4a Methodist Church Act 1976). This is done for as many people as possible within the geographical area the Church serves. In addition, the Methodist Church Act allows for the advanment of other charitable purposes Yor Ihe time being, of any subsidiary unrt of the Methodist Church. (Sections 4b -4d Methodist Church Act 1976) Based on the above objectives, with due consideration of the Charities Commission guidance on public benefit and, in particular, the specific guidan on the charities for the advancement of religion, the Church has the following aims: The provision of Christian worship, spiritual development and pastoral Ca both to the members of the Church and to the wider communty in which it is located. To raise funds so as to make grants to advance the Christian Faith, or for other charitable purposes as for the time being the Church Council deems appropriate, both locally. nationally and intemationally. To support the advanment of the Christian Faith through ecumenical liaison wth other Christian groups.
The majority of the aims fall within the tharitable activty 'missFon arKI rninistr (i.e. the overall advancement of the Christian Faith) with a small amount of grant funding being for other charitable purposes. In support of these aims The Methodist Church owns property in the fomi of church premises, arKI manses for staff accommodation. The Custodian Trustees. who Ild legal title to these properties are: The Trustees for Methodist Church Purtx)ses Central Buildings Oldham Street Manchester M1 1JQ. The Managing Trustees for church premises are the Church Council members of the local society. Reserves pollcy The Church Council has eslablished a reserves policy that ensures that Finchley Methodist Church can continue to support tts commitments in the event of a downtum in the Church's income and can suppjrt its more immediate OblationS in the event of a delay in the reIpt of commÉtted funding. The policy also addresses the Trustees, responsibility for the maintenance of extensive premises, most of which are more than one hundred years old., The Trustees have set a policy that reserves must not fall below six months operating costs. At 31"August 2023 the Trustees had no concems about this. Investment Policy In common with other Methodist Circuits arKI Churches, furKls not required for immediate use are deposited with the Central Finance Board of the Methodist Church 'CFB'. This produces a minimal level of retum while maintsining minimal nsk and a high degree of liquidity. This is reviewed annually.
RISK MANAGEMENT The Church Counal regularfy rewews and assesses the risks that affect the wellbeing of the Church and its finances. Action is taken to mitigate risks where appropriate. The main financial risks identFfied are as follows: Loss of income from property lettings Unexpected property repairs to churches resulting in an inabilrty to pay circuit Assessment The Church Council considers that the current level of reserves is sufficient to meet any unplanned expenditure in the event of the at)ove and when planning the budget for future years. TRUSTEES The members of the Church Council are appointed in accordance with the Standing Orders of the Methodist Church. The trustees on page 2 are those who served during the reporting year or were serving at the date the accounts were signed. A range of guidance produ&d by MetdiSt Connexion lo support the effective running of the Church, specifically the leaflet The Role of a Trustee in The Methodist Church, is given to all new Church Council members as induction to their role as trustees. The Trustees are also committed to ensuring that the Connexional Safeguarding Policy is implemented in accordance with govemment legislation, to provide a safe environrnent for young people and vulnerable adults. STATEMENT OF TRUSTEES. RESPONSIBILITIES IN RESPECT OF THE ACCOUNTS Charity law requires the trustees trj prepare financial statements for each financial period which give a true and fair view of the state of affairs of Finchley Methodist Church and of the results for that period. In preparing those financial ststements. the trustees are required to: select suFtable accounting policies and then apply them consistently: make judgements and estimates that are reasonable and prudent. state whether applicable accounting stsndards have been followed. subject to any material departures disclosed and explained in the financial statements: prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Circuit will continue to function,. and comply with Ihe Statement of Recommended Practice on accounting and reporting by charities issued in 2015. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Church. They are also responsible for safeguarding the assets of the Church and hence for ts.ng reasonable steps for the prevention and detection of fraud and other irregularities. The trustees confimi that they have complied with the above requirements and responsibilities.
Independent Examlners Report 2022-23 I report to the trustee5 on my examination of Ihe acLx>unts for the year ended 31. August 2023 that are set OLrt below. Responsibilities and basis of opinion As Ihe trustees of the Chaiity. you are responsible for the preparation of the accounts in accordan with the qUIrementS of the Charities Act 2011- The Act). I report in respect of my examination of the Trustees accounts carrred out under Section 14S of The Act and in carrying OLrt my examination I have folk)wed all the applicable directions given to me by the Charity Commission under section 145(3Mb) of The Act. Independent Examlners Statement I have completed my examination aThJ confinn that no material matters have come to my attention in connection with the examinats'on that give cause to believe that in any material respect of: 1. Accounting records were not kept in respect of the charity as required by Section 130 of The Act. 2. The accounts do not accord with tse records. I have no concems and have come across no other matters in connection with the examination to which attention needs to be drawn in order to enable a proper uThderstanding of the accounts to be reached. David Evans 38 Galley Lane Arkiey Herts ENS 4AJ
Declarations and Scrutlny I can confim that these receipts arKI payments based acuntS for the year to 31'August 2023 have been prepared from the records of the church and that they indude ail funds under the control of the churc trustees. Signature of Treas Date: 151h April 202 David French Presentation to the Trustees I confirm that the annual report and accounls for the year ended 31 August 2023 We presented to the meeting of the Trustees held <>. Li Iikn Signature of the Chair of Meeting Date v1.914 Martin Wellings
Finchle Methodist Church Annual Accounts 2022-23 Given the expenditure pressures assumed for the year. the £Sk surplus was a healthy position for the year. We had budgeted for an £8k deficit, so were effectively £13k better off than we had expected to be. Flnthlpy Methodst Chur¢h IbKome and Expenditure A¢tount for Year 3tst AutU5t 2023 Year Endtng 315t Au Year ETrdin8 31st Au st 2022 Donations Grft Aid Interest ReCeiVae Letttn85 Renrs Other Incorne otsl Int4xne 26.502 24,109 18.944 1,391 41,772 53A(KI 13y7 35,177 51.290 Salars & Payroll Circur( Charge Accountancy Fees 8ank Char8es 8ookeeping f Repairs and Maintenance Cleaning Estate Agents Fees Insurance IT Support & Telephone Orher Expenses Payroll Fee5 13.939 45.998 11944 43,6(K) 462 93 2.485 16.031 lo22 7356 7.786 3.096 9834 7.194 4,701 3.109 7.289 3 12,1X)I Its395 13,010 TolalExpeNl*¥r• Incomè Although income was down. the previous year figure was distorted due to a back-dated gifl aid claim. The issue5 With gift-aid are ongoing and it is one area we can tighten up. No gtft aid was claimed dunng the finaricial year. but as we have four years to claim. I will look al this. Conversely our interest eamed has been much higher {due to interest rate increases), which has offset a significant drop in lettings income. It is difficult to do a year-on-year Gomparison on lettings as beyond our core lettings. there are a substantral number of ad-hoc bookings. Overall though the InMe of £126k was exactly the same figure as budgeted. Expenditure The highest single item of expenditure is the circurt fees at £45k. followed by sataries at £14k and both of these were on budget. The largest underspend was on utiltlies- actual cost 01 £13k v a budgel of £29k. The budgel assumes the massive increases we were seeiTrJ when the budget was sel bul this never malerialised ~ partly because the government announced support packages. but probably also partly because we were very prudent when budget setting as no-one had any idea of the levels at that time.
Repairs and rnaintenan cosls were £10k. whith was much lower than Ihe premous yeaT- but the nature of reactive maintenance really means we cannot plan for this. and we have to spend whatever is needed. though having some prior oversight about quotes should mitigate against excessive costs. Most of the other costs are insignificanL Balance Sheet The balance sheet remains very strong. at getting on for four years running ts)sls. so no concems al all. One benefit of having a strong balance sheet is that at lasL our investments are giving us a retum. Th8 accruals are mostly the circuit fees. which were paid after yearnd. The only other thing to note is that the benevOl8n fund is untouched - I would suggest utilising some of it this year. Finthley Methodist Chuith 8alance 5heel for Year Ending 3tst A$t 2023 31st Au st 2023 315t t 2022 Cltrrent A55ets CurrentAccounts Oeposit Accounts Totsl aank & Cash 79.197 411. 93.6B7 398.691 492,378 493.044 Current Li•lMliti Accruals 36.51XJ 345 43,553 43.553 Totsl Ntt 3g•ts 449.491 Funds Anaws Unrestrscted Funds Restrirted- Benevolonce Fund 452.127 2.478 447x113 2,478 ll4