## **Church Accruals Accounts 2019-2020**
## **THE METHODIST CHURCH**
## **REPORT AND ACCOUNTS (ACCRUALS BASIS) for the year ended 31 August 2020**
## **Hazel Grove Methodist Church**
## **Registered Charity - Registration number (if applicable)**
**1134174**
United Stockport Circuit **Circuit No Minister** Revd.Catherine Bird **Church Stewards** Jayne Quinn Ian Chesters Brenda Moseley Janet Street Denise Jackson **Church Treasurer** Ian Chesters
## **Hazel Grove Methodist Church TRUSTEES' ANNUAL REPORT**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **Introduction**
_For the year 2019/20 Hazel Grove Methodist Church ("the Church") joined the newlyformed United Stockport Circuit and welcomed a new minister, Cathy Bird as superintendent of that circuit. The Church engaged in outreach work including Film Nights and "Messy Church" events and adopted "Stockport Mind" as a charity to support with donations during the year._
## **RT AND ACCOUNTS**
## **Aims and organisation**
The object of the charity is set out in the Methodist Church Act 1976 (clause 4); i.e. Advancement of Religion and any charitable purposes of the Methodist Church or church organisation.
## **Review of the year**
_Regular Church Activities. We have regular services on Sunday mornings and weekday services on Tuesday mornings. There are occasional Sunday evening services which are open to all churches in the circuit. The Young Church meet each week during term time on a Sunday morning. They also hold occasional Film Evenings and Messy Church. We have continued to review our priorities for the forthcoming years, taking account of national trends regarding staffing and outreach.We continue to enable our property to be used by both church related and community groups. In addition to fellowship groups the church supports a Pre-school Playgroup and Scout Group. Community groups include a model railway club, an orchestra, two choirs, a dancing school and educational classes. There are also a variety of one-off community bookings for events such as meetings, parties, etc._
_The Church had a £ 35,245 I & E deficit during the year principally as the result of noncash transactions (depreciation) and expenditure on property including a scheduled upgrade to the audio-visual system in the church building and roof repairs to the sunday school building. We organise regular fund raising events.The accounts are presented regularly to the Church Council. We have no funds materially in deficit._
## **Income trends**
Regular Church income is primarily drawn from the offertory paid by the congregation and community supporters of the Church together with Gift Aid tax credit; also lettings income from external users of the building and fees / grants collected by the Playgroup. In 2019-20 the single largest source of income was the offertory followed by lettings, then Playgroup income.
The rental income relates to the hire of the church property to various groups in the community.
## **Expenditure trends**
The major cost is in relation to the assessment paid to the newly-formed United Stockport Circuit. This amounts to 29% of our total costs.
A significant amount of the Circuit assessment is used to pay the District assessment, stipends and related costs to Ministers.
The other expenditure includes £ 21,813 on wages for Playgroup staff.
## **Fund balances**
As at 31 August 2020 the net current assets of the Church relating to the General Fund were £135k, giving approximately 20 Months' cover for expenditure.
## **Plans for 2020/21**
Church financial plans for the coming year will be determined in the light of the needs and intentions of the new Circuit.
It is recognised that, due to developments unforeseen at the balance sheet date, the Playgroup closed during the year to 31st August 2021.
Church No
## Name of Church
## **Hazel Grove Methodist Church**
## **Statement of Financial Activities (SOFA) for the year ended 31 August 2020**
|**Notes to**
**the**
**accounts**
**Income**
1 Offerings
4
2 Donations
4
3 Gift aid
4
4 Interest and investment income
7
5 Income from investment properties
6 Internal organisations
7 Other charitable income
5 & 6
8 Total income
**Expenditure**
9 Circuit assessment or share
10 Grants and donations
11 Property maintenance
12 Insurance,utilities etc
13 Depreciation
14 Office expenses
15 Other expenditure
16 Internal organisations
17 Total charitable expenditure
18 Gains/(losses) on monetary investments
19 Gains/(losses) on investment properties
20 Net income/(expenditure)
21 Transfers between funds
22 Other gains/(losses)
23 Net movement in funds
24 Total funds brought forward
**25 Total funds carried forward**|
**General Fund**
**(Unrestricted)**
**Designated**
**Funds**
**(unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2019-20**
£
£
£
£
£
38,597
**38,597**
1,267
1,019
973
**3,259**
5,364
**5,364**
959
106
**1,065**
**0**
**0**
23,999
36,732
**60,731**
**70,186**
**1,019**
**37,810**
**-**
**109,015**|
|---|---|
||42,000
**42,000**
1,637
375
1,930
**3,942**
19,982
17,209
**37,191**
14,093
**14,093**
20,435
**20,435**
920
**920**
1,981
23,697
**25,678**
**0**
**101,048**
**375**
**42,836**
**0**
**144,259**|
||**0**
**0**
**-30,863**
**644**
**-5,026**
**0**
**-35,245**
18,982
-
18,982
**0**
**0**
**-49,845**
**644**
**13,956**
**0**
**-35,245**|
||2,036,218
385
27,088
**2,063,691**
**1,986,373**
**1,029**
**41,044**
**-**
**2,028,447**
|
Church No
## Name of Church **Hazel Grove Methodist Church**
## **Statement of Financial Activities (SOFA) for the year ended 31 August 2019**
|**Notes to**
**the**
**accounts**
**Income**
1 Offerings
4
2 Donations
4
3 Gift aid
4
4 Interest and investment income
7
5 Income from investment properties
6 Internal organisations
7 Other charitable income
5 & 6
8 Total income
**Expenditure**
9 Circuit assessment or share
10 Grants and donations
11 Property maintenance
12 Insurance,utilities etc
13 Depreciation
14 Office expenses
15 Other expenditure
16 Internal organisations
17 Total charitable expenditure
18 Gains/(losses) on monetary investments
19 Gains/(losses) on investment properties
20 Net income/(expenditure)
21 Transfers between funds
22 Other gains/(losses)
23 Net movement in funds
24 Total funds brought forward
**25 Total funds carried forward**|
**General Fund**
**(Unrestricted)**
**Designated**
**Funds**
**(unrestricted)**
**Restricted**
**Funds**
**Endowment**
**Funds**
**Total**
**2018-19**
£
£
£
£
£
42,844
**42,844**
2,802
1,684
**4,486**
6,659
**6,659**
1,082
**1,082**
**0**
**0**
66,577
**66,577**
**119,965**
**1,684**
**-**
**-**
**121,649**|
|---|---|
||42,850
**42,850**
3,658
1,955
**5,614**
29,831
**29,831**
13,765
**13,765**
14,149
**14,149**
1,668
**1,668**
29,542
**29,542**
**0**
**135,463**
**1,955**
**0**
**0**
**137,419**|
||**0**
**0**
**-15,498**
**-271**
**0**
**0**
**-15,770**
27,088
-
27,088
**0**
**0**
**-42,587**
**-271**
**27,088**
**0**
**-15,770**|
||2,078,805
656
-
**2,079,461**
**2,036,218**
**385**
**27,088**
**-**
**2,063,691**|
**Name of Church**
**Hazel Grove Methodist Church**
**Church No**
## **Balance Sheet as at 31 August 2020**
|**Fixed Assets**|**Notes to the**
**Accounts**|**General Fund**
**(Unrestricted)**
£|**Designated**
**Funds**
**(Unrestricted)**
£|**Restricted**
**Funds**
£|**Endowment**
**Funds**
£|**Totals 2020**
£||**Totals 2019**
£|
|---|---|---|---|---|---|---|---|---|
||||||||||
|Church buildingand otherproperty|12|1,851,056||||1,851,056||1,871,491|
|Investmentproperties|||||0||||
|Investments||||||0|||
|**_Total fixed assets_**||**1,851,056**|**0**|**0**|**0**|**1,851,056**||**1,871,491**|
|**Current Assets**|||||||||
|Debtors andprepayments|14|16,226||||16,226||19,710|
|Loans bythe Churches||0||||0||0|
|Investments with TMCP|14|||15,737||15,737||32,759|
|Central Finance Board Deposits|14|90,596||||90,596||104,711|
|Cash at Bank and in hand|14|28,714|1,029|25,307||55,050||36,481|
|**_Total current assets_**||**135,536**|**1,029**|**41,044**|**0**|**177,609**||**193,661**|
|**Current liabilities**|||||||||
|Creditors (due in under 1 year)|15|218||||218||1,460|
|Grantspayable within 2018-19||||||0|||
|**_Total current liabilities_**||**218**|**0**|**0**|**0**|**218**||**1,460**|
|**_Net current assets/liabilities_**||**135,319**|**1,029**|**41,044**|**0**|**177,392**||**192,201**|
||||||||||
|**_Total assets less current liabilities_**||**1,986,375**|**1,029**|**41,044**|**0**|**2,028,448**||**2,063,693**|
|**Long term liabilities**
**(due after more than oneyear)**|||||||
|---|---|---|---|---|---|---|
|Grantspayable after 2018-19||||||**0**|
|Loans to the Church||||||**0**|
|||||||**0**|
|**_Net assets_**||**1,986,375**|**1,029**|**41,044**|**0**|**2,028,448**|
|**Funds of the Church**|||||||
|General Fund(Unrestricted)||1,986,375||**41,044**||1,986,375|
|Designated Funds(Unrestricted)|||1,029|||1,029|
|**_Total Unrestricted Funds_**||||||**1,987,404**|
|Restricted Funds||||**41,044**||41,044|
|Endowment Funds|||||**0**|0|
|**_Total Funds_**||**1,986,375**|**1,029**|**41,044**|**0**|**2,028,448**|
**Hazel Grove Methodist Church**
## **Notes to the Accounts**
## **1. Basis of accounting**
The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities applicable in the UK (effective from 1 January 2015) – the Charities SORP (FRSSE) – in replacement for the SORP’s 2005 version specified in its related 2008 Regulations and in accordance with the ‘true and fair override’ provision contained therein.”
## **2. Funds**
The funds held constitute: General Funds held for any purpose of the Church which are Unrestricted. Restricted funds which are held for a narrower purpose including those for internal organisations. There are also the following Endowment funds as listed. Details of each material fund are disclosed in note 16 . Any funds may be represented by more than just cash.
## **REPORT AND ACCOUNTS**
## **Basis**
**These accounts have been prepared on the basis of historical cost except that property is shown at deemed value at the end of the year, on the accruals basis to show a true and fair view of the Church'’s financial position and activities.**
## **Income**
Income is included in the Statement of Financial Activities (SOFA) when the Church becomes entitled to the resources, and the trustees are reasonably certain they will receive the resources; and the monetary value can be measured with sufficient reliability.
## **Expenditure**
This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Circuit to pay out resources.
## **Grants**
Grants made by the Church from its own funds are recognised in full at the time of agreement or when the Church accepts that there is a legal or operational obligation to make the payment. When the grant is recurrent over more than one year the balance payable in future years is treated as a provision for future commitments in the Balance Sheet against the appropriate fund, the provision being released in future years as instalments are paid in accordance with the originally agreed terms.
## **VAT**
Since the Church is not VAT registered, all input VAT is charged with the expenses to which it refers.
## **Tangible fixed assets for use by the Church**
These are capitalised if they can be used for more than one year, and individually cost at least £1,000.
## **Investment Properties**
Investment properties - no property is currently deemed to not be held for the long term purposes of the charity.
## **Investments**
Investments are valued in the balance sheet at market value at the year end. Investment income is included in the accounts when receivable and any gains or losses on revaluation at the year end are shown in the SOFA.
## **Debtors and Prepayments**
Debtors include outstanding lettings invoices in August.
## **Creditors**
Creditors include outstandings relating to utilities, telephones, etc in August.
## **Hazel Grove Methodist Church**
|**4. Donations and legacies**
Collections
Gift Aid
Donations
Bequest
**Total**
**5. Charitable activities**
Fund raising
Other
**Total**
**6. Other trading activities**
Lettings
Playgroup fees / grants / Furlough Scheme|**Unrestricted**
**Restricted**
**2020**
**Total**
**2019**
**Total**
**£**
**£**
38,597
**38,597**
**42,844**
5,364
**5,364**
**6,659**
2,287
973
**3,260**
**4,486**
**0**
**0**|
|---|---|
||**46,247**
**973**
**47,220**
**53,989**
**Unrestricted**
**Restricted**
**2020**
**Total**
**2019**
**Total**
**£**
**£**
**£**
**£**
3,042
**3,042**
**8,407**
148
1,156
**1,304**
**1,563**
**148**
**4,198**
**4,347**
**9,970**
**Unrestricted**
**Restricted**
**2020**
**Total**
**2019**
**Total**
£
£
**£**
**£**
23,851
**23,851**
**30,634**
32,533
**32,533**
**25,973**
**0**
**0**
**0**
**0**|
|**Total**
**7. Investment income**
Central Finance Board
Rental income
Other|**23,851**
**32,533**
**56,384**
**56,607**
**Unrestricted**
**Restricted**
**2020**
**Total**
**2019**
**Total**
£
£
**£**
**£**
683
**683**
**655**
**0**
**0**
277
106
**382**
**427**|
|**Total**
**8. Other**|**959**
**106**
**1,065**
**1,082**
**Unrestricted**
**Restricted**
**2020**
**Total**
**2019**
**Total**
**£**
**£**
**£**
**£**
0
**0**
**0**
**0**
**0**
**0**
**0**
**0**
**0**
**0**
**0**|
|**Total**|**0**
**0**
**0**
**0**|
**This year**
**9. Payment to Trustees**
**Last year**
Payments made to trustees for additional services provided to the Church by agreement with the £ Church Council Meeting
Number of trustees who were paid expenses Nature of the expenses REPIf there are no payments to Trustees, please record no expenses were paid.
Total amount paid
## **10. Fees for examination or audit of the accounts** Independent examiner’s or auditors' fees for reporting on the accounts Other fees (eg: advice, accountancy services) paid to the independent examiner or auditor
£ £ £
## **11. Paid employees**
**Staff Costs paid during the year were:** Gross wages, salaries and benefits in kind Employer’s National Insurance costs Pension costs Total staff costs **Average number of staff employeed during the year were:**
|£
£
£
£|34,160||36,442|
|---|---|---|---|
|||||
|||||
||34,160||36,442|
## **12. Tangible Fixed Assets**
Cost or valuation
|**REPORT AND ACCOUNTS**|**Church (non**
**investment)**
**land and**
**buildings**
**£**|**Other non**
**investment**
**land and**
**buildings**
**£**|**Investment**
**properties**
**(land and**
**buildings)**
**£**|**Other fixed**
**assets including**
**motor vehicles**
**£**|
**Fixtures,**
**fittings and**
**equipment**
**£**|**Payments on**
**account and**
**assets under**
**construction**
**£**|**Total**
**£**|
|---|---|---|---|---|---|---|---|
|**Balance brought forward**|1,890,000||||123,520||2,013,520|
|Additions||||||||
|Revaluations (+/-)||||||||
|Disposals (-)||||||||
|Transfers * (+/-)||||||||
|Balance carried forward|1,890,000||||123,520||2,013,520|
## **Accumulated depreciation**
|**Accumulated depreciation**||||||||
|---|---|---|---|---|---|---|---|
|Balance brought forward|132,868||||9,161||142,028|
|Depreciation charge for year (-)|12,807||||7,628||20,435|
|Revaluations (+/-)||||||||
|Disposals (-)||||||||
|Transfers* (+/-)||||||||
|**Balance carried forward**|145,675||||16,789||162,464|
|**Net book value**||||||||
|Brought forward|1,757,132|-|-|-|114,359||1,871,492|
|Carried forward|1,744,325|-|-|-
|106,731||1,851,056|
* The method of depreciation is 1% reducing balance for Church land and buildings and 6.67% reducing balance for fixtures, fittings and equipment
**14. Analysis of current assets**
**This year Last year**
|**Debtors and prepayments**
Other debtors
Other prepayments
**Total debtors and prepayments**
**Analysis of cash at bank**
Bank balance held in Royal bank of Scotland
Bank balance held in Royal bank of Scotland - Benevolence Fd
Bank balance held in Central Finance Board
Bank balance held in TMCP
Bank balance held in Nat West
Bank balance held in Vernon Building Society
Pre paid assessments
Accrued income
**Total Cash and Bank**|**£**|**£**|**£**|
|---|---|---|---|
||10,500||10,500|
||4,251||9,090|
|||||
||1,475||120|
||16,226||19,710|
||29,278
1,029
90,596
15,737
24,743
161,383|||
||29,278||21,146|
||1,029||384|
||90,596||104,711|
||15,737||32,759|
|||||
||24,743||14,951|
||161,383||173,951|
## **15. Analysis of current liabilities and long term creditors**
|**Analysis of current liabilities and long term creditors**||||
|---|---|---|---|
|Trade Creditors
Other Creditors
**Total Current Liabilities**|218||1,460|
|||||
||218||1,460|
## **16. Capital commitments and contingent liabilities**
At the 31 st August 2020 the Church has no capital commitments.
No Contingent liabilities were identified at 31st August 2020.
## **Hazel Grove Methodist Church**
## **18. Detailed analysis of individual fund movements**
## **Unrestricted Funds**
|**Unrestricted Funds**|||||||
|---|---|---|---|---|---|---|
|**Fund Name**|**Opening**
**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**
**gains/losses**|**Closing Balance**|
|General Fund|2,017,998|70,186|-101,048|-762||1,986,373|
|Project Fund|3,176|||-3,176|||
|Ladies' Fellowship|498|||-498|||
|Coffee Lounge|879|||-879|||
|Playgroup|13,666|||-13,666|||
|Totals|2,036,218|70,186|-101,048|-18,982||1,986,373|
## **Designated Funds (unrestricted)**
|**Fund Name**|**Opening**
**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**
**gains/losses**|**Closing Balance**|
|---|---|---|---|---|---|---|
|Benevolence Fund|385|1,019|-375|||1,029|
||||||||
||||||||
||||||||
||||||||
|Totals|385|1,019|-375|||1,029|
## **Restricted Funds**
|**Restricted Fund Name**|**Opening**
**Balance**|**Income**|**Expenditure**|**Transfers**|**Revaluation**
**gains/losses**|**Closing Balance**|
|---|---|---|---|---|---|---|
|F KayBequest|27,088||-17,209|||9,879|
|Project Fund||3,052|-1,022|3,176||5,206|
|Ladies' Fellowship||2,119|-2,209|498||408|
|Coffee Lounge|||-72|879||807|
|Playgroup||32,639|-22,324|14,428||24,743|
|Totals|27,088|37,810|-42,836|18,982||41,044|
## **Hazel Grove Methodist Church**
## **19. Related party transactions**
## **This year**
|**Name of related**
**party**|**Relationship**|**Description**
**of**
**transaction**|**Income from**
**related party**
**during the**
**year**|**Payments**
**to related**
**party during**
**the year**|
**Loans to /**
**(from)**
**related**
**party during**
**the year**|
**Amounts**
**owed by /**
**(to)**
**related**
**party as**
**on 31-Aug-**
~~**2017**~~|
|---|---|---|---|---|---|---|
||||**£**|**£**|**£**|**£**|
|JMA|||||||
|Methodist Church
Fund|||||||
|Mission in Britain
Fund|||||||
|Fund for Support
of Presbyters &
Deacons|||||||
|Fund for Property|||||||
|World Mission
Fund|||||||
||||||||
||||||||
|**Total**|||**0**|**0**|**0**|**0**|
|**Lastyear**|||||||
|**Name of related**
**party**|**Relationship**|**Description**
**of**
**transaction**|**Income from**
**related party**
**during the**
**year**|**Payments**
**to related**
**party during**
**the year**|
**Loans to /**
**(from)**
**related**
**party during**
**the year**|
**Amounts**
**owed by /**
**(to)**
**related**
**party as**
**on 31-Aug-**
~~**2016**~~|
||||**£**|**£**|**£**|**£**|
|JMA|||||||
|Methodist Church
Fund|||||||
|Mission in Britain
Fund|||||||
|Fund for Support
of Presbyters &
Deacons|||||||
|Fund for Property|||||||
|World Mission
Fund|||||||
||||||||
||||||||
|**Total**|||**0**|**0**|**0**|**0**|
**Hazel Grove Methodist Church**
Appendix A
## CHURCH COUNCIL MEMBERSHIP
## MINISTER(S)
REV. CATHERINE BIRD
## STEWARDS
MRS. JAYNE QUINN MR. IAN CHESTERS MRS DENISE JACKSON MRS. BRENDA MOSELEY MRS. JANET STREET
## CHURCH SAFEGUARDING CO-ORDINATOR
MRS. ELIZABETH A. LAW
## CHURCH REPRESENTATIVES (OTHER MEMBERS OF THE CHURCH COUNCIL)
1 MRS.JUDITH ADSHEAD 2 MR. KEITH TONGE 3 MRS. SHIRLEY STURMY 4 MR.ERIC COATES 5 MRS.STELLA MOLTON 6 MRS.LIZ YOUNG 7 MR.ALAN BRIGGS 8 MR.ADRIAN LAW 9 MR.GAVIN SYKES 10 MRS.DOREEN SYKES 11 MR.MARTYN BENNETT 12 MRS.PAT HUNT 13 MR.RICHARD LEWIS 14 MRS.ROSEMARY HASKAYNE 15 MR.DAVID EDMONSON 16 MRS.LIZ TURNER 17 MRS.BERYL KEELEY
## **Hazel Grove Methodist Church**
## **DECLARATIONS**
## **Treasurer**
I confirm that these accrual based accounts for the year ended 31 August 2020 have been prepared from the records of the Church and that they include all funds under the control of the Church Council / Members' Meeting / Leadership
Signature of Treasurer Date Name of Treasurer Ian Chesters Address 9, Seaton Close, Hazel Grove, Stockport, Cheshire SK7 5LU
## **Presentation to the Church Council / Members' Meeting / Leadership Group* for approval.**
I confirm that the annual report and accounts for the year ended 31 Aug 2020 were, or will be* and were approved.
Signature of the Chair of the Name of the Chair of the meeting Date
## **Independent Examiner’s Report to the Trustees of the**
**Hazel Grove Methodist Church**[[st]] 2020
This Report is on the Church Accounts for the year ended 31[[st]] August
## **Respective responsibilities of Trustees and Examiner**
The Church's trustees are responsible for ensuring that the annual report and accounts for the year to 31 August 2020 present a true and fair view of the Church's income and expenditure for the year and of its assets and liabilities at the balance sheet date. The trustees consider that an audit is not necessary for this year under Section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts under section 145 of the Charities Act;
- to follow the procedures laid down in the general Directions given by the Charity Commission under
- Section 145(5)(b) of the Charities act; and
- to state whether particular matters have come to my attention.
_* Please delete or circle as appropriate_
**Hazel Grove Methodist Church**
**Basis of Independent Examiner’s Report**
My examination was carried out in accordance with the general directions given by the Charity Commission. An examination
## **Independent Examiner’s Statement**
## REPORT AND ACCOUNTS
In connection with my examination, no matter has come to my attention (other than as disclosed below*)
(1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with Section 130 of the Charities Act 2011.
- to prepare accounts which accord with the accounting records and comply with the accounting
I confirm that the annual report and accounts for the year ended 31 Aug 2020 were, or will be* presented to the Church Council / Members' Meeting / Leadership Group* at its meeting on
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
(3) I ~~have~~ /have not* obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at the Central Finance Board of the Methodist Church which are individually in excess of £10,000 (ten thousand pounds) at the balance sheet date.
Name of independent Stephen Tattersall Signature of independent
Relevant Professional qualification or body
Name of firm (where appropriate)
Address 3 Highfield Road, Poynton, Cheshire SK12 1DU
Date
- _Please delete or circle as appropriate_