Charity Registration No. 1136466
MAGDALEN ROAD EVANGELICAL FREE CHURCH ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
MAGDALEN ROAD EVANGELICAL FREE CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Daniel Steel (Pastor) |
|---|---|
| Charles Currie (Chair) | |
| Patrick Brittenden | |
| Andrew Anderson | |
| Church Treasurer | Jonathan Langley |
| Secretary | Hannah Langley |
| Charity number | 1136466 |
| Principal address | Old Schoolhouse |
| Hertford Street | |
| Oxford | |
| OX4 3AJ | |
| Independent examiner | Critchleys Audit LLP |
| Beaver House | |
| 23-38 Hythe Bridge Street | |
| Oxford | |
| Oxfordshire | |
| OX1 2EP | |
| Bankers | Lloyds TSB |
| 8 Ock Street | |
| Abingdon | |
| Oxfordshire | |
| OX14 5AP | |
| Oxfordshire | |
| Deposit account | Stewardship Services Ltd |
| 1 Lamb's Passage | |
| London | |
| EC1Y 8AB | |
| EC1Y 8AB |
MAGDALEN ROAD EVANGELICAL FREE CHURCH
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 8 |
| Independent examiner's report | 10 |
| Statement of financial activities | 11 - 12 |
| Balance sheet | 13 |
| Notes to the financial statements | 14 - 22 |
MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The Trustees of Magdalen Road Church have pleasure in presenting their Annual Report for the year ended 31st March 2021.
This report and the accompanying financial statements have been prepared in accordance with “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 1 January 201 9 )
Objectives and activities Strategic Report
Review of the year
The year was dominated by the spread of the Covid 19 pandemic, which had started at the beginning of 2020, and affected all areas of national life, including the churches. Along with everyone else we had to adjust to entirely unexpected, unprecedented and unpredictable circumstances. This included restrictions of various degrees of severity, including periods of “lockdown”. We got used to social distancing, hand sanitising and wearing face masks, and “doing church” in a very different way.
Initially our usual in-person services, meetings and activities were severely curtailed. We began to get to grips with Zoom technology, and services on YouTube. It was sad that, having just moved services into the Old Schoolhouse, and having begun to develop our use of the building as our church “home”, for considerable periods the building was largely unused. One unforeseen advantage, however, of moving onto the “screen” was that we were able to reach and engage with some people at a distance, or who were on the “fringe”. The trustees hope that some of these at least can be drawn into church life when the pandemic recedes, possibly by keeping some element of communication on screen. Towards the end of the year widespread vaccination began, and hopes were raised that the easing of restrictions would follow.
Our virtual carol service, including individually-recorded choirists for Covid security
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Throughout the year the emphasis on biblical teaching and preaching continued, with a number of initiatives and new ways of working tried. Pastoral support of members and friends was sustained through the contacts maintained by all the home groups, and by outdoor meetings when these were allowed. Our Pastors set a good example in this. Care for our children and young people remained a priority.
Our trainee pastor Matt Hutchings teaching the children by vlog during lockdown
One significant change in our leadership was the departure at the end of the summer of our Assistant Pastor, David Dent, on completion of his three years with us. He has moved to the North of England to take up a post as Associate Pastor at a church in Huddersfield. He and his wife, Joanna, and their children left us with much goodwill and warm appreciation of their excellent time of service among us. We welcomed Phil Bailey, his wife, Megan, and daughter, Clara, in their place for a similar three-year appointment.
In November 2020 we welcomed church member Jordan Dobbins as a new ministry trainee (unpaid) and in January 2021, another church member, Grace Jamieson also joined him as a ministry trainee. Both Jordan and Grace split their time between volunteering for the church and receiving theological training (from South Central Gospel Partnership and Crosslands UK). We have been delighted to support them both as they consider possible future ministry and mission. We are also very thankful for the way they have served the church family in a variety of ways: from worship music and kids ministry to practical administrative support and preparation for monthly prayer meetings. One of our mission partners Amy Skea also returned from 8 years on the mission field, and served on the church staff team as she transition back to life in the UK, enabling us to better support her as she considered next steps.
The year saw much hard work in difficult circumstances by many people in helping to settle us into the Old Schoolhouse building, and developing the necessary business plan. This will make the building financially viable, and enable us to make our “church home” in it, as well as serving the community of East Oxford. There was real disappointment, and surprise, when, at the end of the year, the City Council turned down our application to improve the site with the building of a new hall. Consideration was immediately given to appealing this decision. The year ended with some uncertainty regarding the continuing consequences of the pandemic, but with complete confidence in our Sovereign God who continues to bless our church so richly in countless ways.
Preparations for church services resuming in person at Old Schoolhouse, with strict Covid-security measures in place
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Vision and values
Despite these big changes, our vision remains unchanged. Our priority is still to bring the good news of the gospel to the people of East Oxford, and to love and serve them well in how we do this. The acquisition of our new building, Old Schoolhouse (OS) in 2018, was a huge step forwards in enabling us to do this, as we can welcome more people, host more groups from the community, and work alongside people. It also allows us to grow our ministries and develop new ones, finding new ways to teach people from the Bible, and to grow in faith and godliness as a church family. Despite some limitations in the fabric of the building and the need for further refurbishment, we have nonetheless seen huge demand from a wide variety of different community groups keen to use the OS. It was wonderful to be able to provide a home for local groups whose venues had closed during Covid restrictions, including a popular parent and toddler group and a Romanian church fellowship.
Our gates remained open on the streets of East Oxford, inviting people to join us in person, or online if they preferred
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
As a church, our priority is the advancement of the gospel, the development of the church family, and the growth of the kingdom of God. As a charity, our priority is to love and serve our community well, expressed first in sharing the gospel and second in practical service, support, and provision. We continue to serve the older members of our community through our network and programme of events for them, designed to tackle loneliness and foster fellowship amongst this generation. We serve children and young families, not just on a Sunday morning, but through the provision of mid-week activities and through our support of the Comfort Trust parent and child groups. We support vulnerable people locally through partnering with the Christians Against Poverty Oxford debt centre and our longstanding connections with local charities combatting homelessness and supporting refugees and asylum seekers. In addition to providing our normal programme of activities and support whenever it was safe and legal to do so, through the pandemic restrictions of the year we also delivered care packages for our network of older members and then children and teenagers, and collected donations of food and supplies for Asylum Welcome.
A few of the care packages we delivered to older people in our community network
Achievements and performance
In all these things, our vision of the church we aspire to be remains the same:
to Love Christ, who is our Saviour
to Reach out with the good news of the gospel, to our local community in East Oxford and further to the rest of the world.
to Build one another up, growing in our faith as individuals and as a church family
to Send people out, trained and equipped to serve Christ well
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
It is against this vision statement that we measure the performance and life of the church in the year. As reflected in the review of the year, we have been pleased with the development of the church in a number of key areas, including through the appointment of two new ministry trainees (Jordan Dobbins and Grace Jamieson), sending David Dent on to a more advanced pastor position in a place of need, restarting our evening services when lockdowns permitted, and enabling greater use of the OS by local community groups.
Strategy for delivering our vision
We aim to deliver on our vision and meet our aims and objectives through:
Investing in the lives of church members in church services, through local house groups, and 1-2-1 meetings with the pastoral staff of the church.
Providing financial and pastoral support to our mission partners in the UK and around the world. Training individuals for ministry through our Ministry Trainee programme.
Supporting members of the community who are in need through our Compassion fund. Developing relationships with local groups and businesses through the rental of the Old Schoolhouse. Investing in the local community through running and supporting initiatives that benefit all within the community.
Plans for the future
Our principal plan remains to increasingly shape and transform the Old Schoolhouse building into a hub for the community where people can meet and work together, as well as a home for us and our church family. We aim to achieve this by developing more of the space to enable us to host local events, run a community café, and rent out space to local businesses and charities.
The COVID-19 pandemic and associated restrictions has had in impact on these plans, though as life is slowly returning to normal, we’re excited by the number of different opportunities from different sections of the community who are keen to use the building and be a part of the project. We are though, also anticipating that the potential for future funding for the
necessary building work is likely to be reduced as there will be increased competition for any available funding.
To mitigate against these ongoing challenges, we have put in place robust measures to ensure that we have been able to host a growing number of community groups even during the restrictions, and will make use of the funds we have available to ensure we can develop enough usable space within the building to host more groups in the future. It is our hope that a new building administrator (due to start July 2021) will work at maintaining, and developing new links with the East Oxford Community. It is our ongoing hope to be granted planning permission to enable us to develop a suitable space for our church family to gather to worship.
Financial review
Incoming Resources
Total incoming resources were £249,980 compared with £1,281,940 the previous year. The primary reason for this significant decrease was the sale of two buildings in the previous year (totalling £954,927). Our unrestricted income totalled £170,075, compared with £148,777 in the previous year. As hoped, giving has increased this year as new members joined the church and started financially supporting us. This is a great blessing to us that despite a year of on-line church meetings, our church family is still committed to supporting us.
Restricted income for the year totalled £79,905 compared with £174,470 in the previous year. This is largely due to a reduction in giving towards our building fund as fundraising efforts have slowed this year now that we have purchased and are using the new building as much as lockdown enabled. There have also been reductions in amounts needed to support mission partners which also accounts for the reduction of restricted income.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Expenditure
Total expenditure for the year was £267,645 compared with £380,160 in the previous year.
Unrestricted expenditure totalled £192,649 compared with £176,534 in the previous year; a variance that is largely explained by an increase in running costs as pay depreciation on the Old Schoolhouse building. Restricted expenditure totalled £74,996 compared with £203,626in the previous year, a variance that is largely explained by a reduction in spending on the Old Schoolhouse building project.
The bulk of our unrestricted expenditure continues to be staffing costs (£98,452) together with the general upkeep of premises and the running of church activities. Other monies are paid over to the Fellowship of Independent Evangelical Churches and the Evangelical Alliance. A number of mission partners receive support through the church’s General Fund.
Liabilities
The long-term liabilities of the church have been reduced to £294,765, compared with £295,172 in the previous year. As we are still waiting on planning permission to be granted on the site, we hope we will be able to complete the sale of a portion of the land which will pay off the majority of the remaining loan. We will continue to service the interest payments (set at 4%) until we have fully repaid the loan, the terms of which run until March 2023.
Fund Balances
The General Fund decreased during the year from £1,188,711 to £1,166,826. Included within the new fund balance is the total value of the property that we own (£1,190,799), less the remaining balance on the bridging loan. The total Restricted Funds balance increased during the year from £90,386 to £94,605 at 31st March 2020.
Risk review
The trustees have reviewed the major risks to which the charity is exposed both financial and reputational. Issues considered are the segregation of duties in the handling of offerings and finance generally, the regular review of the premises for Health and Safety purposes and the provision of a Safeguarding Policy. Additionally, the trustees have considered the financial risks presented by the taking out of the aforementioned bridging loan of £1,250,000. This risk is now substantially lessened owing to the paying off of the majority of this loan. Until such time as we have paid off the loan, payments are only due on the interest incurred, thereby reducing the costs of servicing this loan.
Structure, governance and management
Constitution
The church was set up by a trust dated 1904 and is governed by a constitution adopted on 9th February 2010 and revised on 1st October 2013, and by Rules revised on 1st October 2013.
The trustees who served during the year and up to the date of signature of the financial statements were: Daniel Steel (Pastor) Charles Currie (Chair) Patrick Brittenden Andrew Anderson
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Trustees
The trustees have served throughout the year unless otherwise stated. The trustees are either paid pastoral staff or elders. The trustees are responsible for the control and management of the church and are appointed by the members of the church. As well asthe paid elders, Patrick Brittenden (whose wife is an employee of the church) has a beneficial interest in the charity. The trustees are aware of the need to ensure that at least 50% of trustees have no beneficial interest in the charity. However, there was a brief lapse in oversight here, where Matt Hutchings was appointed as a trustee whilst also a paid member of staff, tipping the balance of trustees who have a beneficial interest in the charity. This was identified and rectified in April 2021, just after the end of this financial year. The trustees recognize this error and are committed to honouring the requirement to have no more than 50% of the trustees having a beneficial interest in the charity and to ensure that decisions affecting stipends and salaries are made by trustees having no such interest. Changes have been made to record and recognize these potential conflicts of interest. When new trustees are elected, they are encouraged to seek training provided by local providers in the charity sector.
Due to the church’s status as an unincorporated charitable organisation, we are not legally entitled to own property. As such, two of the trustees (namely Dan Steel and Patrick Brittenden) own the building on trust for all the Trustees of Magdalen Road Church. A separate company, Magdalen Road Church Developments Ltd, was set up to act as the legal owner of the building that we own, however this is currently dormant. These trustees will retain legal responsibility for this property until the church has been able to attain Charitable Incorporated Organisation (CIO) status, at which point ownership of the building will pass to the church itself.
Prospective Trustees are nominated by the current Trustees and then presented to the church membership in advance of a church meeting. The church members then have an opportunity to reflect on the proposed new Trustee and raise any concerns with current trustees. At the next church meeting a vote is held to approve the appointment of said proposed trustee. The church constitution provides for a three-year term as a Trustee. At the end of which term, the church members can vote to reappoint the Trustee should they wish to continue in that capacity.
Related party transactions
We would identify any entity of which Magdalen Road Church staff or trustees have a controlling stake in as a related party. As the above-mentioned limited company is owned solely by the trustees of Magdalen Road Church, it should be seen as a related party. All costs incurred by the development and upkeep of the building are paid by the Church, and should therefore be viewed as related party transactions between the Church and the limited company. There were no other related party transactions during the year.
Affiliations
The church is a member of the Fellowship of Independent Evangelical Churches and is affiliated to the Evangelical Alliance.
Use of volunteers
The church relies heavily on the voluntary service of church members to run our services and ministries. In addition to the three unpaid trustees (Pat Brittenden, Charlie Currie and Andrew Anderson) the church also relies on volunteers to run our missions committee, set up church services, run our local house groups, run our children’s, youth and older people’s ministries, and manage the finances of the church.
Public benefit
The Trustees are aware of the need to consider that the church is meeting its obligation to provide public benefit. As reflected in our vision and values, we are committed to loving and serving our community through sharing the good news of Jesus and offering practical service and support to people within our community. As part of this this commitment, we are working to support young families, tackle loneliness and isolation amongst older people, and encourage church members to live lives that demonstrate God’s love for the world.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Assesment of going concern
Given the current level of free reserves and the reduction in our long-term liabilities following the paying off of the majority of our loan, the trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern and have a reasonable expectation that the charity has adequate resources to continue its activities for the next 12 months. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.
The trustees' r eport was approved by the Board of Trustees.
.............................. Hannah Langley Church Administrator 24/1/2022 Dated: .........................
.............................. Charles Currie (Chair) Trustee 24/1/2022 Dated:.........................
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2021
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF MAGDALEN ROAD EVANGELICAL FREE CHURCH
I report to the trustees on my examination of the financial statements of Magdalen Road Evangelical Free Church (the charity) for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
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 to enable a proper understanding of the financial statements to be reached.
Critchleys Audit LLP
Beaver House 23-38 Hythe Bridge Street Oxford Oxfordshire OX1 2EP
25/01/2022 Dated: .........................
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| Current financial year Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income and endowments from: Donations and legacies 2 164,197 79,905 Charitable activities 3 1,738 - Other trading activities 4 - - Investments 5 17 - Other income 6 4,122 - Total income 170,074 79,905 Expenditure on: Charitable activities 7 192,649 74,996 Net (outgoing)/incoming resources before transfers (22,575) 4,909 Gross transfers between funds 690 (690) Net (expenditure)/income for the year/ Net movement in funds (21,885) 4,219 Fund balances at 1 April 2020 1,188,711 90,386 Fund balances at 31 March 2021 1,166,826 94,605 |
Total 2021 £ 244,102 1,738 - 17 4,122 249,979 267,645 (17,666) - (17,666) 1,279,097 1,261,431 |
Total 2020 £ 316,599 6,327 250 70 958,694 1,281,940 380,160 901,780 - 901,780 377,317 1,279,097 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
Prior financial year
| Restated Restated Unrestricted Restricted funds funds 2020 2020 Notes £ £ Income and endowments from: Donations and legacies 2 142,129 174,470 Charitable activities 3 6,327 - Other trading activities 4 250 - Investments 5 70 - Other income 6 958,694 - Total income 1,107,470 174,470 Expenditure on: Charitable activities 7 176,534 203,626 Net (outgoing)/incoming resources before transfers 930,936 (29,156) Gross transfers between funds 62,162 (62,162) Net (expenditure)/income for the year/ Net movement in funds 993,098 (91,318) Fund balances at 1 April 2019 195,613 181,704 Fund balances at 31 March 2020 1,188,711 90,386 |
Restated Total 2020 £ 316,599 6,327 250 70 958,694 1,281,940 380,160 901,780 - 901,780 377,317 1,279,097 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
BALANCE SHEET
AS AT 31 MARCH 2021
| Notes Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets Income funds Restricted funds 15 Unrestricted funds |
2021 £ £ 1,190,799 285,607 87,383 372,990 (7,593) 365,397 1,556,196 (294,765) 1,261,431 94,605 1,166,826 1,261,431 |
2020 £ £ 1,215,337 290,584 73,989 364,573 (5,641) 358,932 1,574,269 (295,172) 1,279,097 90,386 1,188,711 1,279,097 |
|---|---|---|
The financial statements were approved by the Trustees on ......................... 24/1/2022
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..............................
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.............................. Charles Currie (Chair) Trustee
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
Charity information
Magdalen Road Church is a registered charity in England and Wales (registered charity number 1136466). It is an unincorporated association governed by Trust Deed. The registered office of the church is Magdalen Road Church, Old Schoolhouse, Hertford Street, Oxford OX4 3AJ.
1.1 Accounting convention
The financial statements have been prepared in accordance with 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 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity 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 are prepared in sterling , which is the functional currency of the charity . 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 charity 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 charity.
1.4 Income
These are included in the Statement of Financial Activities (SoFA) when:
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the charity becomes entitled to the resources;
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it is more likely than not that the trustees will receive the resources; and
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• the monetary value can be measured with sufficient reliability.
Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.
The value of any voluntary help received is not included in the accounts.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
1.5 Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met:
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there is a present legal or constructive obligation resulting from a past event
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it is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement
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the amount of the obligation can be measured or estimated reliably.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
1.6 Tangible fixed assets
Tangible fixed assets are shown at their current net book value on an historical cost basis. Assets are capitalised where the value of the asset is greater than £250 .
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:
Freehold property over 50 years Equipment over 3 years
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.
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 charity ’s contractual obligations expire or are discharged or cancelled.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
2 Donations and legacies
| Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 140,417 69,633 Gift aid tax refunds 23,780 10,272 164,197 79,905 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 210,050 120,934 160,239 34,052 21,195 14,231 244,102 142,129 174,470 |
Total 2020 £ 281,173 35,426 316,599 |
|---|---|---|
3 Charitable activities
| Unrestricted | Unrestricted |
||
|---|---|---|---|
| fund | fund |
||
| 2021 | 2020 |
||
| £ | £ |
||
| Events and church activities | - | 1,697 |
|
| Rental on church building | 1,738 | 4,630 |
|
| 1,738 | 6,327 |
||
| 4 | Other trading activities | ||
| Total | Unrestricted | ||
| funds | |||
| 2021 | 2020 |
||
| £ | £ |
||
| Rental on manse | - | 250 |
|
| 5 | Investments | ||
| Unrestricted | Unrestricted | ||
| funds | funds |
||
| 2021 | 2020 |
||
| £ | £ |
||
| Investments | 17 | 70 |
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
6 Other income
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Job retention scheme grant | 3,922 | - |
| Other income | 200 | - |
| Proceeds from sale of manse | - | 363,106 |
| Proceeds from sale of chapel | - | 591,722 |
| Creditor reversal | - | 3,866 |
| 4,122 | 958,694 | |
| Charitable activities | ||
| Charitable | Charitable |
|
| activities | activities |
|
| 2021 | 2020 |
|
| £ | £ |
|
| Pastoral ministry | 119,157 | 110,232 |
| Missions | 28,092 | 27,625 |
| Overseas relief | 336 | 300 |
| Special needs | 2,483 | 1,700 |
| Other ministry | 4,254 | 12,994 |
| Church planting | 2,850 | 4,820 |
| Running costs | 71,931 | 45,490 |
| Church building | 34,024 | 174,390 |
| 263,127 | 377,551 |
|
| Share of governance costs (see note 8) | 4,518 | 2,609 |
| 267,645 | 380,160 |
|
| Analysis by fund | ||
| Unrestricted funds | 192,649 | 176,534 |
| Restricted funds | 74,996 | 203,626 |
| 267,645 | 380,160 |
7 Charitable activities
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
8 Support costs
| Support costs Governance costs £ £ Legal and regulatory - 3,660 Elders expenses - 207 Compliance DBS - 651 - 4,518 Analysed between Charitable activities - 4,518 |
2021 £ 3,660 207 651 4,518 4,518 |
Support costs Governance costs £ £ - 2,300 - 19 - 290 - 2,609 - 2,609 |
2020 £ 2,300 19 290 2,609 2,609 |
|---|---|---|---|
Governance costs includes payments to the independent examiners of £1,650 (2020: £3,600 for audit fees).
9 Trustees
With the exception of the paid member of staff who is also a trustee (Daniel Steel) the elders and trustees received no remuneration for their services. Elders expenses in the year related to the cost of refreshments at meeting of the wider church leadership team.
10 Employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Social security costs Other pension costs |
2021 Number 6 2021 £ 91,490 27,861 6,747 126,098 |
2020 Number 6 2020 £ 91,263 21,400 9,597 122,260 |
|---|---|---|
One paid member of staff (Daniel Steel) is also a trustee of the charity. Remuneration and pension contributions to this member of staff totalled £42,606 (2020: £38,754) and expenses totalled £260 (2020: £314).
No employee received emoluments (excluding employer pension costs ) of more that £60,000 .
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
11 Tangible fixed assets
| Cost At 1 April 2020 At 31 March 2021 Depreciation and impairment At 1 April 2020 Depreciation charged in the year At 31 March 2021 Carrying amount At 31 March 2021 At 31 March 2020 |
Freehold property £ 1,214,750 1,214,750 - 24,295 24,295 1,190,455 1,214,750 |
Equipment £ 1,230 1,230 643 243 886 344 587 |
Total £ 1,215,980 1,215,980 643 24,538 25,181 1,190,799 1,215,337 |
|---|---|---|---|
i.) The church is the beneficial owner of the Old Schoolhouse (previously known as the Irving Building), with the legal title held in trust by Daniel Steel and Patrick Brittenden (two of the Trustees). A portion of the land worth £615,250 has been sold to developers, with a deposit paid of £400,000, and the balance due upon completion of housing to be build on the site.
ii.) Following their sale, the Church is no longer the beneficial owner of the Chapel and the Manse. The sale of these buildings has gone directly to pay down the loan taken out to purchase the Old Schoolhouse.
iii) Tangible fixed assets are shown at their current net book value on an historical cost basis. Assets are capitalised where the value of the asset is greater than £250. Tangible fixed assets are grouped by category and depreciated on a straight line basis over the following periods:
Freehold property - over 50 years Computer Equipment - over 3 years Other Equipment - over 5 years
iv) All fixed assets are used for direct charitable purposes.
12 Debtors
| Amounts falling due within one year: HMRC - Gift aid claim Other debtors |
2021 £ 69,478 879 70,357 |
2020 £ 74,992 342 75,334 |
|---|---|---|
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 12 Debtors Amounts falling due after more than one year: Due on completion of sale of property Total debtors |
(Continued) 2021 2020 £ £ 215,250 215,250 285,607 290,584 |
|---|---|
£215,250 represents the balance due upon completion of the sale of a portion of the new property recently purchased. This amount has been deducted from the value of tangible fixed assets.
| 13 Creditors: amounts falling due within one year Trade creditors 14 Creditors: amounts falling due after more than one year Other creditors |
2021 £ 7,593 2021 £ 294,765 |
2020 £ 5,641 2020 £ 295,172 |
|---|---|---|
£294,765 represents the remainder of the bridging loan taken out to purchase a new building, secured against this property, and reduced following the sale of the Chapel and the Manse. The bridging loan has a five year term and the remainder will will be paid off upon completion of the sale of the remaining portion of land.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
15 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 in funds | Movement in funds | |||||
|---|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Transfers | Balance at | ||
| 1 April 2020 | resources | expended | 31 | March 2021 | ||
| £ | £ | £ | £ | £ | ||
| Old schoolhouse project | 50,410 | 42,950 | (31,024) | - | 62,336 | |
| Mission | 28,847 | 6,928 | (21,814) | - | 13,961 | |
| Pastoral worker | (285) | 975 | - | (690) | - | |
| Trainee pastor | 2,617 | 24,055 | (20,705) | - | 5,967 | |
| Special needs | 1,163 | 1,084 | (883) | - | 1,364 | |
| Trainee fund | 4,020 | 3,913 | (570) | - | 7,363 | |
| Other restricted income | 3,614 | - | - | - | 3,614 | |
| 90,386 | 79,905 | (74,996) | (690) | 94,605 |
The Old Schoolhouse Project Fund is for funds related to the purchase and development of the Old Schoolhouse building. We will continue to raise and spend out funds until such as time as the redevelopment work is complete.
The Mission Fund is for funds related to the restricted support of the mission partners selected by the missions committee. Funds will continue to be spent out as they are raised and in line with budgets set by the missions committee.
The Pastoral Worker Fund is to receive gifts restricted for the support of the church pastoral worker, Kitty Brittenden. Gifts received go towards her annual salary costs and will continue to do so while Kitty is employed by the church.
The Trainee Pastor Fund is for funds related to the salary costs of the trainee pastor Matt Hutchings. Gifts received go towards his annual salary costs and will continue to so while Matt is employed by the church.
The Special Needs Fund is for funds given in relation to a specific appeal or need within the church. Funds will continue to be spent out as they are raised.
The Trainee Fund is for funds related to the restricted support of any ministry trainees who are required to raise their own support. Funds will continue to be spent out as they are raised.
The Other Restricted Income Fund represents a range of smaller funds, most notably funds received for the support of other local churches with which we have historic connections. Remaining funds will be spent out in line with donor intentions.
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MAGDALEN ROAD EVANGELICAL FREE CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 16 Analysis of net assets between funds Unrestricted funds Restricted funds 2021 2021 £ £ Fund balances at 31 March 2021 are represented by: Tangible assets 1,190,799 - Current assets/ (liabilities) 270,792 94,605 Long term liabilities (294,765) - 1,166,826 94,605 |
TotalUnrestricted funds 2021 2020 £ £ 1,190,799 1,215,337 365,397 268,546 (294,765) (295,172) 1,261,431 1,188,711 |
Restricted funds 2020 £ - 90,386 - 90,386 |
Total 2020 £ 1,215,337 358,932 (295,172) 1,279,097 |
|---|---|---|---|
17 Financial commitments, guarantees and contingent liabilities
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £ 2,160 (20 20 - £ 2,208 ). This represents the total commitments under non-cancellable operating lease over the remaining life of the lease.
18 Related party transactions
Included within expenditure in Note 7 are transactions relating to the church building amounting to £34,024. (2020 £174,390). As two trustees have a controlling stake in Magdalen Road Church Developments Ltd which owns the building these are viewed as related party transactions.
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