TRUSTEES REPORT & ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020 Chariiy Reqi51ration No.. 1134517 C.ON'TE.NTS Supcrintendent Minisier . Advisors.. Independent examinet5-. Mi.%sion Siaienieni olHarle.sden Methodist Church................................................ Fini1ncial Review......................................................................................................... Risk Assessment...................................................................................................... Trustees. Re.5 onsibilitie.£. Rebervc Polic Charity Rcgistraiion No.. 1134i17 Administration Charity Registration No: 1134517 -Names of Trustees." Revd Dr Leao-NetO (Superintendent uniil _31110119) Revd Dr Mike Long (Superintendent from 1111119)) Easmon Lavaly (Secretary) Abena Oduro ITreasllrer) .Mai)' Lewi Robin Sha Val Mccallun? (A.ssistanl Trcasurei) Kwasi Amoah Ingrid Yarde Ellen Boakye Veronica Boaten(r Florence Doherty David Boampong ChTiS JOI￿SOn Alcxandra DU.b￿ab Bevan Powell Rupert Mikely Norman Mulling.$ Vera Waliers-morrison Eric Odum Bill Phillip Bevan Powell Ellen Bodkye ,N'umia Ward Stewards le.r-officio Trustecs) Vern( the mosi deprived and poor- in BritaiTt and w'orldwidc" Developino confidencc in evangeli.sm and in Ihe capaciiy 10 speak of God and faith in ￿'ayS Ibai niake sense to aIl involved- Encouraging fresh ways ()f being Church. Nunurino a culture in the Church which is people-centred dnd tlexible ,Nli5sion Statement of Harlesden Methodist Church Harlesden imeihodist Chuich ha5 dcveloped a rnission staiement seiiing out key policies. In SUTlltnary il state.s the FolJowino objectives- Make disciples of Jesu5 Christ Encourage and support youno people in the church and beyond Serve our local community and wider world in both spiriiua] and prrtclical ways Unite with fellow Chri.stians locally and throughoui the world Reco.onizc and celebrate our uniiy and diversity and work io overcunie division Ileview of ActivitA¥S Shortly afier the year beuan: the superintendent minister. Revd DT LEao-Neto. an- nounced that he had been offered the w)st of ecumenical secreiary to the Melhodisl Church and reque.51ed a curtaiImenl [() his appoinimeni. Thts was aoreed and made effective on 31 ' October 2019. The Pre%idcnt of the Conference stationed Re￿d Dr ,MiCh￿le1 Lonu as superiniendent to the church and circuii from I" ￿0VeMber. Charity Re(yistrdtiun No.. 1134517 Until the outt￿eak of coronavirus in early 2020, the Church maintsined the regular and full progrdmme of Sunday worship. including activities for Junior Church and fellowship groups- Women's Fellowsbip, Men's Fellowsbip. Rainbow Fellowship, Choir and Fellowship aod the Ghanaian Fellowsbip. Attendance at Sunday worship (I 1.00 am and 6.30 pm) h&$ remain￿ SiTnilar to previo￿8 yea[& The various fellowships wntinue to offer th¢ opportunity for Wfftple to develop their faitb and nurture their discÉpleship. The Church in partnership with other denominations run a Fresh-Food Food Bank since December 2016. It has Se￿ an increase in the numbers of those attending. The numbers have reached just Under IIXI people. representing families. They rtteive food. advice, English lessons and pastoravspiritual sUp￿)rt. The Food Bank is run mostly by locaI church and community volunteer4 including a few church Men}b￿s. As an expression of the Church's mission to welcome the stranger and the needy, the Chur¢lL with the supp)rt of the London Borough of BrenL continued to house a Syrian Refugee family in one of its two flats since 12 December 2017. The church continues its effort to renovate ILS premises in order to improve its services to the wider community but has experienced CODsidetable difficulty in doing so. The heating and ￿'ater syStell￿ in particular are ca￿n￿ked for urgent attention. THE IMPACT OF THE PANDEMtC FROM MARCH 2020 The church was closed in March following governnEent regulation to minimise the spread of COVID 19. The local community w&8 one of those most Seriously affected durFng Mar¢h and April 2020. and sadly seve￿1 church died from COVID-19. and a numkr of others were unwell. Although the church was closed during this period, members were encouraged to participate in joint u)om serviccs with Notting Hill Methodist church and other5 organised by various Methodist chwches in the UK Charity Registration No: 1134517 The closure of the church premises had il very serious Impact upon our finances. both throutyh reduced COngrc￿aI1onLll iyiTrin(F and a dramaiic fall in Iciiin2% income. Financial Review Incorne for the year Ioialled £13_5.-3?0 {?019= £164,980). Expenditure for the year totalled £141,435 12019.. £2)? 946). All funds of tbe chuTch are unresiricted funds ai the end of the reporttll(p The church Gcneral Fund ].% primarily made up of the following". Donaiiolls lind leoacies were 34010 {2019..270/o) of its general fund. LettinLfS were 38 10 (?019= 44 /0) of rhe oveTall (Telleral income of the chuTCh. The church received other incomc throuoh various actlvllies during the year such a.5 income from investments. 3. Resourtes Expended: Circuit Assessment is ?9°/0 (2019:19°/0) of the total cburcb expendiiuie. The Circuit &ssessmenl primatily includes Di51rici assessJnent and the cost of the minister. Church ￿nnIn0 expenses fomL% 340/0 {2019:?6 /0) of Ihe church resnurces expended. Repairs and maintcnance forms 50/0 (?019.-46 % ) nf it.s resource.s a]located. Uiililies and Insur4ince makes up 250/0 (2019..70/ct) OF the oveTall church expenses. Risk Assessment The ehtsrity depLndb on YoJunEary coniributions from llJeTnbcT% and a decline in vol_ uniary Contributions may affect the church's abilily to meei ils obl1.￿1]0ns. The char- iiy also has rooms that it rent.s out for social oathcrin(ps and Ihi5 ￿lld is utilized to nieel the financial oblioaiions of ihe charity. The Finance and rhe Propcrty Comniii- tee idke responsibility for risk &£ses%ment Ibal involves a review of the cbariiy's pro- Charity Re2jslraiion No.. 1134517 cedures oll an on(Foino basis. The chariiy has internal cotttrol pr()cedures in place to mitfft¥ate risk. I'ru.stees' Res onsibilitie.s The Trustees are responsible foi preparino the financial staietnenis that uji'e a true and fair view of the charity'.5 financial aclivItie.s in the course of the year and al rhe end of the year. In preparincF the fjnancial statemeni. the trustees should follow best practice and. Select 5Uitable accountin(r policies and then apply Ihem consistently MaL-e judgem¢nt.s and esiimates thai are reasollable and pn￿ent State whether applicable accounting %tandards and statement ot rcLommend- ed practice haN'e bcen followed. subject lo any departUTe.% disclosed and ex- pl￿ed in the Flnancial statement and Prepare the charity fmancial .staiernents on an ontroing Loocern basis unless it i.s inappropriate to presume that the chariiy will coniinue in operation. Reserve Polic The Trustees have a(yreed to mainthin a level of l? weeks operational COS1% as re- .seTves in the curreni year. PubIic benefit statement The Tru.stees confArm thai Ihey have complied with the duty ill Section 4 of rhe Chdrities Act 2011 to have due rerfyard to tbe Charily Comtnission's generdl ouidance on public benefit. 'fhatilies and public benefii" These financial statements have been prepared in accor(knnce witb the Siaiemenl of Reeonunended Practice- Accountin(F and ReportlDg by Charitics. Approved by the Irustecs and stgned on tbeir behalf by: Revd Elaine jo.sepb Superiniendenl Minister Abena Oduro Treasurer Ch¥￿itY Registration No= I134.i17 Name ol Church Harlesden Methodist Churth Statement ol Financial Activilies (SOFA) for the year ended 31 August 2020 District No to Ihe Dislrict 3CCOUlIt Oeneral Fund Advancè Fund Deslgnated Fvnds Iunrtslricleill IUnrÈstrictedl lunrestrictÈdl Restficled Endowment Fundg Funds Tothi 2019-20 Income from l Donaiions and leg3C5es 2 Connexiona Adv8nce & Prwrty Ftsnd 3 Income Irorn investments Incoffle Irtrrn Investment PraDert￿$ lrtcome from charitable artiVit¢es 4 Asssssrnenls on tircuns 5 From Circuit Model Trusi Furvjs 6 Ineome from Lethrrgs 7 Olhei tharllatjlp activit￿$ 45.022 45.022 37.817 31,817 49.687 3.4 49,667 3,426 3,643 1,691 135.320 g Orher income TDtal incomè 1.691 131.677 3.643 2.643 Expenditure 9 CircDil assessment Of Sh8r8 Grants and donations 10 Salaries and assooaied rosts 11 Insurance, ulililes 12 Property I￿aIntenant& 13 Office expenses 14 Synods, ¢0￿MIttee$, Conler8rte 15 Training Depreciation 16 Professional fg8s 17 Other oulgoin9S Total •xpenoiiure 4Q,&7 1.050 39.662 34,245 6,889 7.493 40,267 1,050 39,662 34,245 6.889 7.493 3.040 2.8LX) 2.346 137,792 3.010 1800 5,989 141.435 3.643 3,643 Net incomellexpen¢jitu￿> belore oains and lo$s•s oh investments 18 Nei gains,'Ilossesl on Investments Nei incomellexpendlturel 19 Transfers beiween luntt5 20 Oiher gainslknssesi Net mo¥8mgnt in lunds 4.115 -6.115 ,115 -6.115 4,115 Total funds brDvght forward Tot41 funds orried forward -6,115 2.644.823 2￿8.508 2,644.623 0 2.638.508 Name ol Church Harlesden Methodist Church Statement of Financial Activities {SOFA) for the year ended 31 August 2019 District No Not8S to Ihe District account General Fund Advance Fund De￿gnated Fur>ds (Unrestricted) (Unrestricted) lunTesirrctedl Rèstricted EndowmerFt Funds Fund$ Total 201&19 Incom8 from 1 Donabons legathes 2 connex10n￿ Aclvafice & Property Fund 3 Income IroTn investments Incorne from charrtable attivstlÈs 4 Asse5srnenig on circuils 5 From circ￿11 Mcdel Tru51 Funds income from Inve51meni Propertie5 7 Other che019￿e aciivilies 8 lfjcome from Other Irading &cl1Vil￿s 9 Oiher incom Total income 4J,540 409 28.383 70.545 2a.38J 70,545 19.873 161750 2.230 2.230 22.103 164.980 Expenditure 9 Granis ano dooetlOQS 10 Sak4ries ano associated eosts Circuit a85essm6ni or share 12 Pioperty Maintenance 13 Ott￿e expens8S 14 Synods. commiftees. Conferente 15 Depreciation 16 profes￿On￿ fees 17 Olhei outgoings Total expendituve 47,388 115.S44 17.995 47,388 115.544 17.995 66.749 250.716 2.￿0 2,230 68,979 252,946 Net iTrconJellexpendilurel before galns 8nd10$5e$ on Investments 18 Net gainslllossesl on Inyesttnenis Not Incom*iexpenditu¥ei 19 Transfers be)Heen funds 20 Other gaiTrsllbssgsI Net movement in ltsnijs -87,966 7,966 47.966 47.966 Total funds brought forward Total funds carried forward 47,966 2.732.589 1644.623 2,732,589 0 2.SM.623 11111 1111 1111 11 111111 1111 11 11 1111 11 11111 Church Accounting Policie5 Basis These accounts have been prepared on the basis of historical cost, except that investment properties are shown at their market value at the end of the year, and on the acciu31s basis to show a true and fair view of the Church's financial position and activities. Funds The funds held constitute .' general funds held for any purpose of the Church which are unre5tricted- restricted funds which are subject to restrirtions imposed by the donor and can only be used for specific purposes. Incorning resources Incoming rosources are included in the Statement of Financial Artivities (SOFA) when the Church becomes entitled to that income, and the trustees are reasonably certain they will receive the resources, and the amount can be quantified with reasonable accuracy. Resources expended Expenditure is recognised on an accruals basis 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 Church to pay out resources. VAT Since the Church is not VAT registered. all input VAT borne is charged with the expenses to which it refers. Tangible fixed assets It is the Church's policy to capitalise its non-building fixed asset5, including vehicles, furniture and equipment assets, with costs over £1,000 and to charge depreciation on these. All building fixed assets are capitalised with only the building element depreciated Residential rental properties are also treated as investment properties. Their valuations are based on vacant possession values reduced by one third to reftect their tenanted status. Deproclation Depreciation is charged as follows on building and non-building fixed assets Buildings lother than investment properties) Organ over 50 years over 5 years Computers over 3 years Furniture and equipment over 5 years 14 Critical accounting estimate5 and judgments In the application of the charitvs accounting policies, the trustees are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 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 current and future periods. Notes to the Accounts I Income from Investment Properties The income from lettings of £31,81712019- £28,383) comes from the letting of two flats. l. Other Charitable Income This income of £49,68712019 - £70,545) comes principally from the letting of space in the Church. 2. Circuit a55essment or share The charge of £40,26712019- £47,388) is borne by the Church. 3. Salaries, NIC and Pension costs Ministry expenses and Other expenditure include relevant staff employment costs. 2020 2019 34.290 30,620 1,356 1.206 967 1,560 Gross wages, salaries and benefits in kind Employer'5 National Insurance costs Employerfs pension costs Total staff costc 36,614 32,555 Average number of staff employed by the Church and Circuit during the year were 2 {full time equivalent5112019- 2} The Church provides a money purchase pension arrangement with Nest. There were no employees whose annual remuneration was £60,000 or more. 15 4. Tangible Fixed Assets {5ee Schedule at end of Notes to the Accounts) Property fixed assets for the Church'5 own use Property fixed assets for investment The Church acquired the freehold and leasehold of 4 Tavistock Road through a legacy. The flats are insured for £349,544. Depreciation Depreciation is shown in the Schedule at the end of Notes to the Accounts, charged on building and non-building fixed assets at the rates shown under Church Accounting Policies above. 2020 2019 Debtors Rent in arrears 44.839 25.641 Provision for bad debts 128,4361 (14,000} Other debtors 9.827 468 Creditors Other creditors and accruals 19,042 23,228 Fees for independent examination of the accounts Independent examinerfs fee for reporting on the accounts 2.650 2,500 Related party transartions Remuneration of key management personnel The remuneration of key management personnel 15 35 follows-. 2020 2019 Aggregate compensation One trustee, Chris Johnson. wa5 paid £1.319 for caretaker cover. 16 Capital commitrnents and Contingent liabilitie5 The Church had no such commitments or liabilities at the year end. 10. Tangible lixed assets Church Investm8nt Fixturess buildings propertles fittings & and other equipment property Total Cosiat 1.9.19 2.200,000 394.380 45,319 2,639,699 Additions Cost al 31.8.2020 2,200.000 394.380 45.319 2,639,699 Depreciaiion ljroughl lorwaid 33,159 33.159 Charge lor the year 3,040 Depreciabon carried forward 31.8.20 36,199 36,199 Net book value 31.8.20 2,200.000 394.380 9.120 2.603,500 Nel book value 31.8. 19 2,200,000 394.380 12.160 2,606.540 Name of Church. .Harlesden Methodist Church....................................... No...1134517........ Declarations and Scrutiny I confirm that these accruals-based accounts for the year to 31 August 2020 have been prepared from the records of the Church and that they include all funds under the control of the Church trustees. Signature of treasurer Date. O"+ / ¢0 ! knz.i. Name and address of treasurer . 116éts14....ODUP-£>. Post Code.lJ.W).¥()...ts.ty Presentation to the Church Irustees I confirm Ihat the annual report and accounts for the year ended 31 August 2020 wereywill be. presented to the meeting of the Church trustees held on Signature of Ihe Chair of the meeting Name of the Chair of the meeting k.¢3..￿.&￿(.￿j&.j￿.drl.... Date ... ... ..... . Independent Examiner's Report to the Trustees of the Harlesden Methodist Church Charity Number 1134517 Responslbilities and basis of rèport I report to Ihe trustees on my examination of the accounts of the .klknft¢6dRK Me*t¥ Church for the year ended 31 Augusi 2020 sei out on pages Jij to ..Tr As the Church's trustees, you are responsible lor the preparation ol the accounts in accordance with the requirements of Ihe Charities Act 2011 ('the Act'l. I report in respect of my examination of the Church's accounts carried out Ljnder section 145 of the Act and, in carrying out my examination: I have followed all the applicable Directions given by Ihe Charity Commission under seclion 14515){b) ol the Act. delete or circle as appropriate Name of Church No............. Independent Examiner's Statement I have completed my examination. I confirm that no material matters have come lo my attention in connection with the examination lolher Ihan that disclosed below,) which give me cause to believe that in. any material respect: the accounting records were not kept in accordance with section 130 of the Act., or the accounts do not accord with the accounting records- or the accounts do not comply with Ihe applicable requirements concerning the form and conlenl of accounts set out in the Charities {Accounts and Reports) Regulations 2008 other than any requiremenl that the accounts give a 'lrue artd fair, view, which is not a matter considered as part of an independent examinalion the trustees, annual report is not consistent with the accounts I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order lo enable a proper understanding of the accounts to be reached. I havelhave not. obtained independent verification of all investments with the Trustees for Methodist Church Purposes or held in other trusts, bank balances and funds at Ihe Central Finance Board of the Methodist Church which are individually in excess of £10,000 Ilen thousand pounds) at the balance sheet date. Signature ol independent examiner Name of independent examiner Relevant professional qualification of independent examiner Name of firm (where appropriatel Address Posl Code V(]...-3LL Date delete or circle as appropriate Sepiember 2020