**Charity Registration No. 1134031** ## **PUTNEY METHODIST CHURCH** # **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2020** ## **PUTNEY METHODIST CHURCH** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|The Members of the Church Council| |---|---| |**Charity number**|1134031| |**Principal address**|Gwendolen Avenue| ||Putney| ||London| ||SW15 6SN| |**Independent Examiner**|Andrew Miller FCA| ||Azets Audit Services| ||Trinity Court| ||34 West Street| ||Sutton| ||Surrey| ||United Kingdom| ||SM1 1SH| |**Investment advisors**|The Trustees for Methodist Church Purposes| ||Central Buildings| ||Oldham Street| ||Manchester| ||M1 1JQ| ||United Kingdom| ## **PUTNEY METHODIST CHURCH** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 4| |Independent examiner's report|5| |Statement of financial activities|6 - 7| |Balance sheet|8| |Notes to the accounts|9 - 21| ## **PUTNEY METHODIST CHURCH** ## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ The trustees present their report and financial statements for the year ended 31 August 2020. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Church's governing document, the Charities Act 2011 and 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), effective from 1 January 2015. ## **Reference and administrative details** Reference and administrative details are shown in the Legal and Administrative Information page of the financial statements. ## **Objectives and activities** The objective and policy of the trustees, both long term and short term, is to enable the church to function successfully at a local level and, through The Connexion, at a national and international level as well. The Methodist Church's calling is to respond to the gospel of God's love in Christ and to live out its discipleship in worship and mission. The Church is concerned with helping the wider community, which it does so through a variety of donations to various charities and good causes both in the UK and overseas. It raises money at regular Church services and through occasional fund raising activities. The Church services are at the heart of local life, but Church life extends further. The central four objectives are worship, learning and care, service and evangelism. The Church provides facilities to Lion House School (now Hurlingham School), from which it receives rental income. Putney Methodist Church also has a Sunday School. The Church also engages in outreach with other local schools and groups, runs a meditation group for local people, and has long-established links with Wandsworth Prison. When gifts and legacies are received they are usually invested for long term benefit, in line with the principles of the Methodist Church. The church is used regularly to host community events, for example concerts and fundraising for charities such as Christian Aid, and also serves as a polling station. The Church has also put strategies in place regarding the safeguarding of children and vulnerable adults, a Fire Risk Assessment and a Health and Safety Assessment. The Church is of the opinion that it fulfils the requirements of Section 4 of the Charities Act 2011, as a result of its work in the community. The Church relies heavily on volunteer work. Trustees do not receive formal training, other than in safeguarding, but are under the guidance of the Circuit and the Minister who is employed directly by the Circuit. Regular meetings are held to ensure that any issues arising are discussed properly. There were no employees during the year. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Church should undertake. ## **Achievements and performance** The COVID-19 pandemic severely affected the life and work of the church in many ways. Church services were restricted and at times suspended, as were other activities in the building. However the Church Council made arrangements to continue as much work as possible, for example, by organising online services and other activities, and maintaining key pastoral contacts by telephone. Putney Methodist Church has continued to maintain the Church and school building. Expenditure and donations have been maintained at a level to keep sufficient funds and reserves have been in line with its overall objectives of helping the Church and wider community. - 1 - ## **PUTNEY METHODIST CHURCH** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ Income has been in the form of voluntary donations and the letting of part of the buildings to Hurlingham School. The COVID-19 pandemic reduced the church's income from congregational collections and from its other users, but this was mitigated as far as possible, for example, by encouraging online donations, and the loss has been manageable. The investments have retained their value, due to their cautious portfolio, which was creditable given the current economic conditions. This was in line with the long term objective to keep the Church on a solid financial footing. The Church and school buildings were valued at £5,892,126 by the Methodist Insurance. ## **Financial review** This reserves policy relates to our General Fund and Restricted Fund. The assets of the Church are spread between bank balances and investment funds held by the Central Finance Board of the Methodist Church and the Trustees for Methodist Church Purposes (TMCP). This helps to ensure regular and reliable returns. It is the policy of the Church that unrestricted funds which have not been designated for a specific use should be maintained at a level in excess of three month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Church’s current activities while consideration is given to ways in which additional funds may be raised. At the end of the financial year, general unrestricted funds amounted to £336,276 (2019 - £350,077). Our total unrestricted expenditure for the last financial year amounted to £107,370 (2019 - £149,876) and therefore the trustees consider the reserves level as it stands is sufficient to meet the minimum three months expenditure as stated in the policy. This policy is reviewed annually. Reserves held in the designated fund are for use in the maintenance and upkeep of the Church and ancillary buildings. Designated fund reserves have increased during the year to £120,753 (2019 - £115,407). There are no major plans that require additional funding in the foreseeable future, therefore the Trustees consider these reserves sufficient. If for any reason additional funding were to be required, the Trustees would review the fundraising methods required to raise more funds. The reserves are reviewed annually, in the context of the need for a continuing programme of repair and maintenance of the large and historic church building. Restricted funds comprise of Benevolent funds of £657 (2019 - £653) unexpended balances of donations and grants held on trust for specific purposes. The endowment funds are held by the Trustees for Methodist Church Purposes and have unrestricted income but the capital is restricted. The balance of the endowments at the end of the year was £4,070 (2019 - £4,032). The trustees have assessed the major risks to which the Church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. T he trustees intend to operate the Putney Methodist Church in a similar manner for the foreseeable future. ## **Structure, governance and management** The Church completed registration with the Charity Commission in 2010 and is largely governed by a document entitled 'The Constitutional Practice and Discipline of the Methodist Church' last revised in 1996. The trustees who served during the year are listed in note 21 to these financial statements. All members of the Church Council are trustees and the minister is automatically appointed. The General Church council meet annually and elect the Church Stewards and representatives to sit on the Church Council. Other designated members such as the Church Secretary are elected by the Church Council. - 2 - ## **PUTNEY METHODIST CHURCH** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ The charity's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU). The charity's current policy concerning the payment of trade creditors is to: - settle the terms of payment with suppliers when agreeing the terms of each transaction; - ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and - pay in accordance with the charity's contractual and other legal obligations. The charity had no trade creditors at the end of the year. The Putney Methodist Church is part of the Richmond and Hounslow Circuit of Methodist churches, which is part of the larger London District. The Circuit administers people, property and finance, and acts through central Circuit meetings, which representatives of each of the local churches attend. Putney Methodist Church pays a quarterly assessment to the Circuit to cover the Circuit's costs. All districts are related to each other through The Connexion, which is a network of support for all the churches in Great Britain. The Methodist Church's activities are governed largely by a document entitled 'The Constitutional Practice and Discipline of the Methodist Church' last revised in 1996. Putney Methodist Church has its own Church Council which makes decisions affecting the Church at a local level. There are no formal training procedures involved in membership of the Church Council, which is ultimately the decision making body for Putney Methodist Church. The Church tries hard to ensure that people on the Church Council and various committees have a combination of relevant skills. Members are from a wide variety of backgrounds and professions. On a national level, the on going work of the Methodist Conference is undertaken throughout the year by the Methodist Council, which meets four times annually. ## **Plans for the future** The trustees intend to operate the Putney Methodist Church in a similar manner for the foreseeable future. - 3 - PUTNEY METHODIST CHURCH TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 St•t•m•nt of tru*ts••' mpon8lbllltb•• The INste85 are responsible for preparing the Trustees. Report and the accounts in accord8n¢e with appliCa￿e law and Unrted Kingdom AcLounting Standards (United Kingdom Generally Accépted Accounting Practic&l. The law appllcable to ch8ribo8 in England 8nd Wale8 wuires thè trn8le88 to prepare accounts for e8ch finanaal year which give a tnJ& and fair view ol the state ol affairs of Ihe Church and of the incoming r8sources and application of rosour¢s$ of tho Church for that year. In preparing these accounts, the trustees ore required to.. - select suitable a￿nt1Thj OirAes and then appty theffl consistsntly: - observe the methods 8nd pdndples In th8 Ch8dJ8s SORP., - make ludgom8nts and 88limal68 that are re88on8tAe and prudent., 8t8te vthether sp￿icatIe accounting standards have been fdlowed. subject to any mateAal departures dlsdosed and explolned In th$ a¢count$', and - prepa￿ tt)& on tlle golng e4)nc8m b881s unless it 1$ Inappropriate to prè8urM that lh8 (*arlty wll continue in operation. The Iruslees afe responsible for keeplng suffldent accountlng records ihat dlsclose ￿ reasonable accuracy at any time the finandal posrtlon of the Church and enable them to ensure that the accounts comply with the ChariUe$Act 2011, the Charity IAccounts and Rep￿ts) Regulations 2CN)8 and the provisions of the trust deed. They are Blso re$pon$lble for safegu8rdlng the assets of the Church and h8n¢e for taking re8son8ble steps for the prevontion and detection of fraud and other irregularities. The trustees. report was apwoved by the Board ofTrustees. C Norris Tru8ts0 Dated PUTNEY METHODIST CHURCH INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PUTNEY METHODIST CHURCH I report to the trustees on my examination of the f￿a￿la1 statements of Putney Methodist Church Ilhe Church) for the year ended 31 August 2020. Ro$ponBlbllltlos and bas1* of rnport As the trustees of the Church you are responsible for the preparation of thè financial statements in accordance wlh the reqU1￿MentS of the Chaiitie$ A¢t 2011 Ilhe 2011 Act). I report in re$pect of my &xamination ol the Church's financial statements carried out under section 145 of the 2011 Act. In ¢8rrying out my examinab.on I have fotlo*ed all the app&"cable Directions given by the Charity CommS$sion under section 14515Mb) of the 2011 Act. Ind•p•nd•nt •xamln•fs stsl•m•nt Your attention 18 dravffl to Ihe fact that the charty has prepared financial statements in accordance with Accountin9 and Reporting by Charities preparing their a¢counls in aC￿rdance the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) in prelerence to the A¢counling and Reporting by Charilies." Statement of Recommended Prath"ce issued on 1 Aw'l 2005 wfiich 15 referred lo in the extant regulations bul has now been withdravm. l undtrstand that thi$ has been done in order for finan￿￿ Statements to provtde a true and fair view in accortjance with Generaty Accepted Accounting Practice fjffeth.ve for reporting periods b•ginnlng on or after 1 January 2015. I have completed my examination. I confim) that no mattefs have come lo my attenb'on In conn•ction wlh the eyamination giving me cause to believe that in any material respect.. accountlng records were nol kept in respect of th• Church as reqLNred by 8ectron 130 01 the 2011 Act,. the financial SL9Ierr￿ts do not ac￿rd wlth those records., the finan￿al slaterr*nts do not compty wilh the applubje requirements ¢onceming lorm and content ol a¢¢ount8 set out in the Charrt*$ IAc¢ounl$ and Reports) Regulation$ 2008 othei than any requirement that the accounts give a true and lair view which 1$ not a matter considered as part of an independent •xaMinat￿ft. I have no concems and have Coff￿ acr08s no other matters in ¢onne¢lion wrth the e￿iMina￿On lo attention should be drawn in this report in order lo enable a &Koper undernlanding of Ihg financial statements lo be reached. Andrew Miller Bsc FCA A2els Audrt Services Independent Examiner ICAEW Trinity Court 34 Wesl Street Suiton Su￿tY SM1 1SH Dated.. ## **PUTNEY METHODIST CHURCH** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ |**Unrestricted Endowment**
**Restricted**
**funds**
**funds**
**funds**
**2020**
**2020**
**2020**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
18,019
-
2,044
Investment Income
**4**
89,796
34
4
Other income
**5**
1,552
-
-
**Total income**
109,367
34
2,048
**Expenditure on:**
Raising funds
**6**
587
8
-
Charitable activities
**7**
106,783
-
2,044
**Total resources expended**
107,370
8
2,044
Net gains/(losses) on investments
**12**
(10,479)
38
-
**Net (outgoing)/incoming resources before**
**transfers**
(8,482)
64
4|**Total**Unrestricted Endowment
Restricted
funds
funds
funds
**2020**
2019
2019
2019
**£**
**£**
**£**
**£**
20,063
29,537
-
791
89,834
91,404
49
4
1,552
8,403
-
-
111,449
129,344
49
795
595
586
8
-
108,827
149,290
-
791
109,422
149,876
8
791
(10,441)
612
220
-
(8,414)
(19,920)
261
4|Total
2019
**£**
30,328
91,457
8,403
130,188
594
150,081
150,675
832
(19,655)| |---|---|---| - 6 - ## **PUTNEY METHODIST CHURCH** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ |**Net (outgoing)/incoming resources before**
**transfers**
Gross transfers between funds
**Net (outgoing)/incoming resources**
**Other recognised gains and losses**
Revaluation of tangible fixed assets
**Net movement in funds**
Fund balances at 1 September 2019
**Fund balances at 31 August 2020**|(8,482)
26
(8,456)
143,874
135,418
6,213,737
6,349,155|64
(26)
38
-
38
4,032
4,070|4
-
4
-
4
653
657|(8,414)
-
(8,414)
143,874
135,460
6,218,422
6,353,882|(19,920)
41
(19,879)
205,032
185,153
6,028,583
6,213,736|261
(41)
220
-
220
3,812
4,032|4
-
4
-
4
649
653|(19,655)
-
(19,655)
205,032
185,377
6,033,044
6,218,421| |---|---|---|---|---|---|---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 7 - PUTNEY METHODIST CHURCH BALANCE SHEET ASAT31 AUGUST 2020 2020 2019 Flxod ass•ts Tangiblo assats Investments 13 14 5,944,820 287,394 5,B08,496 297,834 6,232,214 6,106,330 Curr•nt a•s•t8 Debtors CAsh 8t bank and In h8nd 15 30,342 102.526 32.349 90,972 132.868 123.321 Cr•dltorn: amounts lalllng du• wlthln on• y•ar 16 111.2001 111.2301 Nel CLtrrent assets 121,668 112,091 Total a•••ts 1•88 curr•nt IlablllU•• 6,353,882 6,218,421 In￿me fund• Resthcted funds Endowment fun(Js 17 657 4,070 653 4,032 Designated funds G8nèr81 unrgstricted lund3 R&v8luatlon 18 120.753 336,276 5,892,126 115.407 350,077 5.748.252 6.349.155 6.213.736 6.353.882 6.218,421 C Norrfs Trust•0 **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** ## **Charity information** Putney Methodist Church is part of the Richmond and Hounslow Circuit of Methodist churches whose activities are largely governed by a document entitled 'The Constitutional Practice and Discipline of the Methodist Church' last revised in 1996. ## **1.1 Accounting convention** The accounts have been prepared in accordance with the Church's governing document, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016). The Church is a Public Benefit Entity as defined by FRS 102. The Church has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling , which is the functional currency of the Church. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Church. ## **1.4 Incoming resources** Income is recognised when the Church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Church has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. L egacies are accounted for on the basis of when the monies are received by The Central Finance Board. - 9 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Resources expended** Support costs have been allocated to activities for which they directly relate. Any governance costs have been allocated on the proportion of other costs incurred for the activities. Resources expended are recognised as Charitable activities under the following headings: Church events - costs directly associated with running Church Services and events Gifts to charity - donations made to registered charities Ecumenical services - donations made to further the charitable activities of the Methodist Church Assessment by circuit - contributions to the local circuit for minister stipends and to assist in regional governance. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures, fittings & equipment 3-30 years The Church building is included in the Balance Sheet at its insured value as determined by Methodist Insurance PLC. An adjustment is made every year (where material) as an unrealised gain or loss. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. ## **1.7 Impairment of fixed assets** At each reporting end date, the Church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. - 10 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** **(Continued)** ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The Church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Church's balance sheet when the Church becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the Church’s contractual obligations expire or are discharged or cancelled. ## **1.10 Leases** Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. ## **1.11 F ixed assets** A ll fixed assets are initially recorded at cost. Tangible assets with a cost of below £500 are not included in fixed assets. - 11 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **1 Accounting policies** ## **(Continued)** ## **1.12 P roperty** After taking advice from the Charities Commission, in conjunction with the Property Methodist Office, the Church building and the school property need to be included on the balance sheet, at their insured value according to Methodist Insurance plc. An adjustment is made every year where material as an unrealised gain or loss. It has been identified from the SORP (paragraph 18.3) that historic churches are unlikely to meet the heritage asset definition as the preservation of the buildings they occupy is unlikely to be the primary objective of the charity. Churches therefore do not quality as a heritage asset and so cannot be included at nil cost. ## **2 Critical accounting estimates and judgements** In the application of the Church’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Judgement has been used in the allocation of support and governance costs to each of the three activities. The useful economic life fixtures, fittings and equipment has been estimated in order to determine the appropriate depreciation policy. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Donations and legacies** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
18,019
2,044
**Donations and gifts**
Envelopes
9,860
-
Collections
5,192
-
Gift aid reclaimed
2,070
-
Local collections
897
-
Other donations
-
2,044
18,019
2,044|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
20,063
29,537
791
9,860
6,170
-
5,192
15,577
-
2,070
5,786
-
897
2,004
-
2,044
-
791
20,063
29,537
791|Total
2019
£
30,328
6,170
15,577
5,786
2,004
791
30,328| |---|---|---| - 12 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **4 Investment Income** |**Unrestricted Endowment**
**Restricted**
**funds**
**funds**
**funds**
**2020**
**2020**
**2020**
**£**
**£**
**£**
Rental income
84,202
-
-
Other interest receivable
5,129
-
-
Interest receivable
465
34
4
89,796
34
4|**Total**Unrestricted Endowment
Restricted
funds
funds
funds
**2020**
2019
2019
2019
**£**
£
£
£
84,202
83,584
-
-
5,129
7,430
-
-
503
390
49
4
89,834
91,404
49
4|Total
2019
£
83,584
7,430
443
91,457| |---|---|---| - 13 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **5 Other income** |Other income
**Raising funds**
**Unrestricted Endowment**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Investment management
587
8
587
8|**Unrestricted**Unrestricted
**funds**
funds
**2020**
2019
**£**
£
1,552
8,403
**Total**Unrestricted Endowment
Total
funds
funds
**2020**
2019
2019
2019
**£**
£
£
£
595
586
8
594
595
586
8
594| |---|---| ## **6 Raising funds** - 14 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **7 Charitable activities** |Depreciation and impairment
Direct costs
Advertising
Share of support costs (see note 9)
Share of governance costs (see note 9)
**Analysis by fund**
Unrestricted funds
Restricted funds|**Gifts to**
**charity**
**Ecumenical**
**services**
**Assessment**
**by circuit**
**2020**
**2020**
**2020**
**£**
**£**
**£**
-
12,946
-
9,057
1,363
41,121
-
1,157
-
9,057
15,466
41,121
-
36,249
-
957
1,634
4,343
10,014
53,349
45,464
7,970
53,349
45,464
2,044
-
-
10,014
53,349
45,464|**Total**
**2020**
**£**
12,946
51,541
1,157
65,644
36,249
6,934
108,827
106,783
2,044
108,827|**Gifts to**
**charity**
**Ecumenical**
**services**
**Assessment**
**by circuit**
**2019**
**2019**
**2019**
**£**
**£**
**£**
-
12,236
-
4,008
789
54,828
-
260
-
4,008
13,285
54,828
-
71,556
-
288
1,193
4,923
4,296
86,034
59,751
3,505
86,034
59,751
791
-
-
4,296
86,034
59,751|**Total**
**2019**
**£**
12,236
59,625
260
72,121
71,556
6,404
150,081
149,290
791
150,081| |---|---|---|---|---| - 15 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **8 Description of charitable activities** ## Gifts to charity Donations made to registered charities. ## Ecumenical services Donations made to further the charitable activities of the Methodist Church. ## Assessment by circuit Contributions to the local circuit for minister stipends and to assist in regional governance. ## **9 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Rates, Light & Heat
11,787
-
Insurance
6,377
-
Printing, Postage &
Stationery
153
-
Repairs & Renewals
12,513
-
Cleaning
2,488
-
Sundry expenses
2,931
-
Accountancy
-
6,660
Legal and professional
-
274
36,249
6,934
Analysed between
Charitable activities
36,249
6,934|**2020**
Support
costs
Governance
costs
**£**
£
£
11,787
9,046
-
6,377
6,071
-
153
258
-
12,513
51,731
-
2,488
2,430
-
2,931
2,020
-
6,660
-
4,950
274
-
1,454
43,183
71,556
6,404
43,183
71,556
6,404|2019
£
9,046
6,071
258
51,731
2,430
2,020
4,950
1,454
77,960
77,960| |---|---|---| Accountancy costs includes payments to the independent examiners of £2,700 (2019- £2,700) for independent examination fees. ## **10 Trustees** None of the trustees (or any persons connected with them) (2019- 0) received any remuneration during the year. No trustees (2019- 0) received reimbursement for any reason other than making purchases on the Church's behalf. ## **11 Employees** The average monthly number of employees during the year was: ||**2020**|**2019**| |---|---|---| ||**Number**|**Number**| |Total|-|-| - 16 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **12 Net gains/(losses) on investments** ||**Unrestricted**|**Endowment**|**Total**|Unrestricted|Endowment|Total| |---|---|---|---|---|---|---| ||**funds**|**funds**||funds|funds|| ||**2020**|**2020**|**2020**|2019|2019|2019| ||**£**|**£**|**£**|£|£|£| |Revaluation of||||||| |investments|(10,479)|
38|(10,441)|
612|220|832| ## **13 Tangible fixed assets** |**Freehold land**
**and buildings**
**£**
**Cost or valuation**
At 1 September 2019
5,748,252
Additions
-
Revaluation
143,874
At 31 August 2020
5,892,126
**Depreciation and impairment**
At 1 September 2019
-
Depreciation charged in the year
-
At 31 August 2020
-
**Carrying amount**
At 31 August 2020
5,892,126
At 31 August 2019
5,748,252|**Fixtures,**
**fittings and**
**equipment**
**£**
137,629
5,396
-
143,025
77,385
12,946
90,331
52,694
60,244|**Total**
**£**
5,885,881
5,396
143,874
6,035,151
77,385
12,946
90,331
5,944,820
5,808,496| |---|---|---| Land and buildings with a carrying amount of £5,892,126 (2019 - £5,748,252) were revalued during the year by the Methodist Insurance . This is inline with the Methodist Church policy to recognise the value of land and buildings at the insured value, considered to be the fair value . - 17 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **14 Fixed asset investments** |**Cost or valuation**
At 1 September 2019
Valuation changes
At 31 August 2020
**Carrying amount**
At 31 August 2020
At 31 August 2019
**15**
**Debtors**
**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**16**
**Creditors: amounts falling due within one year**
Accruals and deferred income|**Unlisted**
**investments**
**£**
297,834
(10,440)
287,394
287,394
297,834
**2020**
**2019**
**£**
**£**
4,074
9,259
26,268
23,090
30,342
32,349
**2020**
**2019**
**£**
**£**
11,200
11,230| |---|---| Deferred income of £6,250 (2019 - £6,250) has been recognised in relation to rent received in advance for the school and play area. - 18 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **17 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: ||||**Movement**||**Movement**|| |---|---|---|---|---|---|---| ||||**in funds**||**in funds**|| |||**Balance at**|**Net incoming**|**Balance at**|**Net incoming**|**Balance at**| ||**1**|**September**|**resources**|**1 September**|**resources**|**31 August**| |||**2018**||**2019**||**2020**| |||**£**|
**£**|**£**|
**£**|**£**| |Benevolent fund||649|
4|653|
4|657| £657 (2019: £653) is held as a restricted fund in bank accounts as a benevolent fund in order to help those in need. ## **18 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: |||**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**|| |---|---|---|---|---|---|---|---| ||**Balance at**|**Net incoming**|**Transfers**|**Balance at**|**Net incoming**|**Transfers**|**Balance at**| ||**1 September**|**resources**||**1 September**|**resources**||**31 August**| ||**2018**|||**2019**|||**2020**| ||**£**|**£**|**£**|**£**|**£**|**£**|**£**| |General|||||||| |property|42,357|68,244|(74,476)|36,125|65,231|(59,885)|41,471| |Lion House|||||||| |lease|79,282|-|-|79,282|-|-|79,282| ||121,639|68,244|(74,476)|115,407|65,231|(59,885)|120,753| The Property fund is a designated fund relating to the buildings at Gwendolen Avenue, which forms the Church and ancillary buildings used for letting to Lion House School, and income and expenditure relating to the same. Part of this fund is set aside to meet the ongoing obligations arising from the lease on Lion House School. Income from the fund is also used to meet the Assessment by circuit expense, which requires transfer to the unrestricted fund. - 19 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2020**_ |**19**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Endowment**
**funds**
**Restricted**
**fund**
**2020**
**2020**
**2020**
**£**
**£**
**£**
Fund balances at 31 August 2020 are represented
by:
Tangible assets
5,940,750
4,070
-
Investments
283,324
4,070
-
Current assets/(liabilities)
121,011
-
657
6,345,085
8,140
657|**Total**Unrestricted
funds
Endowment
funds
**2020**
2019
2019
**£**
£
£
5,944,820
5,808,496
-
287,394
289,770
4,032
121,668
111,438
-
6,353,882
6,209,704
4,032|Restricted
fund
2019
£
-
4,032
653
4,685|Total
2019
£
5,808,496
297,834
112,091
6,218,421| |---|---|---|---| - 20 - ## **PUTNEY METHODIST CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_ ## **20 Related party transactions** There were no disclosable related party transactions during the year (2019 - none). No remuneration was paid to key management personnel during the year. ## **21 List of Trustees** Minister Senior Steward - Administration Stewards Council Secretary Sunday School Safeguarding Church Meeting Rev Geoffrey Farrar Clive Norris Jenny Drewe Jane Fawcett Solomon Lindsay Sarah Mtonga (Appointed - 1st September 2019) Geoff Waterhouse Ruth Kelly (Appointed - 1st September 2019) Jane Fawcett David Armstrong Ben Waterhouse Jeremy Long (Resigned - 9th July 2020) Lesley Murray Pam Long (Resigned - 9th July 2020) Sandra Salmon Orileke Mabo Jessica Dalton (Appointed - 1st September 2019) Imogen Rush (Appointed - 1st September 2019) (Resigned - 9th July 2020) Bill Topping (Appointed - 1st September 2019) - 21 -