2021-08-31-accounts - Trinity Methodist Church, Oadby

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The Methodist Church TRINITY METHODIST CHURCH, OADBY

ANNUAL REPORT AND ACCOUNTS

2020 – 2021

Regd. Charity No: 1143707

Administrative information

The Church is part of the Leicester Trinity Circuit (23/7) in the Northampton District of the Methodist Church of Great Britain.
Church Address: Trinity Methodist Church, Harborough Road, Oadby, Leicester LE2 4LA
Church Membership at 31.08.21: 127

Aims

The calling of the Methodist Church is to respond to the gospel of God’s love in Christ and to live out its discipleship in worship and mission.
Trinity aims to be “A church for all at the heart of the community”
The Church’s Mission Statement (approved by Church Council in June 2009) states:

Trinity is a church which

Encourages growth in the Christian faith
Reaches out to all in the community
Aims to care for everyone
Shares God’s love through worship and service
Responds with others to God’s call to Mission.

Oadby Trinity Methodist Church Annual Report and Accounts 2020/21

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Organisation

The Church Council (Managing Trustees) is the principal body responsible for the affairs of the Church. Its remit encompasses the spiritual life and growth of the church family, its outreach, and its administrative and financial affairs. Detailed governance arrangements are outlined in The Constitutional Practice and Discipline of the Methodist Church (CPD) by order of the Annual Conference of the Methodist Church. Meetings are chaired by the Minister (or in his absence by the Superintendent Minister or one of her colleagues).
The Trustees receive no remuneration or other financial benefits from their work. All decisions taken by the Church Council are minuted. Meetings are held at least once each quarter (normally in October, December, March and June).
The Church Stewards act as the Senior Leadership Team on behalf of the Church Council on a day-to-day basis and are assisted by ‘teams’ which cover different areas of church life: Family, Finance, Outreach, and Worship. There is also a separate Pastoral Committee responsible, with the Minister, for overseeing the pastoral care and spiritual welfare of the church family.
Zak’s Café Ltd is a trading subsidiary of the parent charity, Trinity Methodist Church. The Directors of Zak’s Cafe Ltd (which trades as Zeph’s) take responsibility for the management and day-to-day operation of the cafe on behalf of the Church Council and report to it regularly.
As part of the induction to their role as trustees all new Church Council members receive a copy of the document The role of a trustee in the Methodist Church together with a copy of the Safeguarding Policy agreed by Church Council. Trustees are required to complete a Declaration of Trustee Eligibility annually.
The Church’s Safeguarding Policy is reviewed annually. A Safeguarding Officer is in post and CRB/DBS checks are carried out as necessary. The Church Council is committed to the implementation of Connexional Safeguarding policy and to the provision of support, advice and training to enable people to be clear and confident about their roles and responsibilities in safeguarding and in promoting the welfare of children and adults who may be vulnerable.

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Oadby Trinity Mèthodist ChLJrch Annual Rèport and A¢coLJnts 2020121 Page 3

Review of progress and achievements

The twelve months covered by this report continued to be dominated by the difficulties and restrictions arising from the coronavirus pandemic. The normal pattern of Sunday worship was disrupted for much of the year, Zeph’s Café was closed for several months, and the church’s income from lettings was severely reduced.
The Church Council met on five occasions during the year. Four of these meetings (those held in September and November 2020, and in March and June 2021) were routine meetings although they took place virtually, via Zoom. At each of those meetings, as well as completing the formal business, an opportunity was provided to share ‘good news’ about the life and activities of Trinity.
A Special Church Council Meeting was held on 26th July 2021, this time in person, primarily to deal with important matters arising from decisions taken by the Methodist Conference of 2021. By substantial majorities the meeting voted to permit the church to be used for the blessing of same-sex marriages and civil partnerships conducted elsewhere, and to register the premises as a venue to conduct same-sex marriages as soon as practical, once legislation permits.
A brief General Church Meeting was held on 26th July 2021 immediately before the Special Church Council meeting referred to above. The meeting received a booklet of written reports from Church activities and organisations covering a period of two years as the General Church Meeting which had been planned to take place on 26th April 2020 had been cancelled. The reports indicated that, despite the restrictions and difficulties of recent months, a great deal of useful activity had continued. Five Church Stewards and nine representatives to the Church Council were re-elected.
Throughout the pandemic Sunday worship continued virtually, using Zoom. The morning service at 10.30am was organised locally and a Circuit evening service was also available on-line. From Easter Sunday onwards the monthly early morning celebration of holy communion (at 8.30am) resumed, albeit with ‘covid-safe’ arrangements in place. During the second part of the

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reporting year morning worship took place in ‘mixed-mode’, with a small, socially distanced congregation physically present and many others joining virtually via Zoom.

The Church Council meeting held in June 2021 accepted a proposal from the Worship Team that, in view of declining numbers attending evening worship, from September 2021 an evening service would be held at Trinity once a month (rather than each week), and that this would normally be a service of Holy Communion.
Trinity continued to enjoy strong links with its ‘sister churches’ in Great Glen and Houghton on the Hill for which the Revd Derek McLean also has pastoral charge, not least because for much of the year virtual worship via Zoom was organised on a ‘section’ basis.
The Church continued to play its part as a constituent member of Churches Together in Oadby (CTiO) although opportunities for ecumenical activities were necessarily restricted. At Christmas 2020 Trinity shared in a ‘walking nativity’ planned by CTiO, and the Minister took part in a virtual United Service held on Good Friday.
Weekday meetings were severely disrupted by the pandemic. By the end of the reporting year plans were in hand for Welcome on Wednesday, Thursday Fellowship and some house groups to resume their activities in Autumn 2021. The prayer group resumed its regular meetings on the premises each Saturday morning during the summer. In addition, the prayer circle which is organised via email proved invaluable during the months of ‘lockdown’.
The Minister continued to produce a regular pastoral letter which was widely distributed and much appreciated. Pastoral visitors kept in touch by telephone and email with members of the church family, particularly those who live alone.
For Zeph’s Cafe, which is normally open to the public six days each week from 9.30am until 4.30pm, 2020/21 proved to be another challenging year. When the café was able to re-open its programme of special events such as Fish Frydays and other themed evenings proved to be increasingly popular.

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At a meeting of the Church Council held on 25th November 2020 the Managing Trustees placed on record “their deep appreciation of the work of the Directors and Staff of the café, and in particular, their response to the special challenges created by the coronavirus pandemic”. They also reaffirmed “their commitment to encourage, support and sustain the development of Zeph’s as an integral part of the outreach ministry of Trinity Methodist Church”.
The Oadby Foodbank, which operates (rent-free) from the church premises, was able to continue its work throughout the year, albeit with the introduction of special measures to ensure safe social distancing. The number of families supported each fortnight continued to increase.
Work with children and young people normally includes the monthly Young Families sessions on Sunday mornings, Messy Church activities organised ecumenically through CTiO, and the popular ‘Santa’ and ‘Easter’ Breakfasts in Zeph’s which are followed by craft and story-telling activities. In the absence of such activities for much of the year, Junior Church staff kept in touch with children and young people via post and email.
In spite of the financial challenges which Trinity faced during the year, the church continued to support a variety of organisations and agencies which work with those in special need, including Christian Aid, All We Can (Methodist Relief and Development Fund), Action for Children, and MHA.
The Church premises are normally let to a wide variety of individuals and community bodies, but much of this activity was interrupted. Fortunately, the Helping Hands advice clinic which operates on the premises on one morning each week was able to resume its sessions: its work is valued by the local community.
Trinity has a website – www.oadbymethodist.co.uk – which is up-dated regularly. The church newsletter, Affinity, continued to be published on-line only for much of the year. Weekly church notices were incorporated in the Minister’s pastoral letter.
The property continued to be well maintained and is in good order throughout.

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Health and Safety Risk Assessment and room-by-room Fire Risk Assessment have been undertaken.

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Financial information

The Trustees maintain financial arrangements requiring dual signatures on all cheques, and prior approval for all except minor items of expenditure.
The financial accounts have been approved by the Church Council and examined independently. A copy of the accounts is appended.
The suspension of weekly public worship and cessation of lettings from March onwards had a potentially serious impact on church finances. Income from lettings fell to £7,905 (compared to £24,733 in 2019/20 and £39,616 in 2018/19). A grant of £4,667 was received from Oadby and Wigston Borough Council in recognition of the loss of income from lettings. Income from collections and donations showed a significant increase, resulting in an unanticipated surplus of income over expenditure of £9,237.
The largest single item of expenditure was the Circuit Assessment (£51,738), followed by repairs and maintenance which amounted in total to £14,650. (Both of these figures were lower than in the previous reporting period).
Reserves Policy: It is the church’s policy to attempt to maintain non-restricted funds equivalent to 50% of annual expenditure. This policy is reviewed annually.
The church’s non-restricted funds include ‘designated’ funds, which are held as part of the General Funds balance. These resources need to be available to ensure appropriate care and maintenance of the building and of the church organ.
The church has three restricted fund balances: (1) The J.C. Ward bequest which can only be utilised for redecoration purposes (£1,698); (2) the Benevolence Fund (£869) for use at the discretion of the Minister in cases of urgent personal need; (3) the Vickerman bequest for expenditure on the organ (£10,211).
Investment policy: The General Fund, held in a current account at Lloyds Bank, operates at a level to sustain ongoing expenditure. The remainder is invested at the Methodist Church Central Finance Board, where although the

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level of interest is currently very low, it is competitive for instant, nonpenalised access in the present financial environment.

Future plans

At the end of the reporting year the Managing Trustees were able to look forward to a steady resumption of many church activities. However, the numbers attending ‘live’ worship indicated that many of the congregation were continuing to exercise caution. While some regular hirers of the premises had returned, it was clear that others were reluctant or unlikely to do so. In spite of many uncertainties and imponderables the Trustees remain committed to sustaining the Church’s fellowship, worship and witness, and continue working to realise the vision to be “a Church for all at the heart of the community”.

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Annual Financial Statements

Basis of preparation

As treasurer I confirm that I have prepared the accounts for the year ended 31 August 2021 from the records of the Church and Zaks Café and they include all funds under the control of the Church Council

----- Start of picture text -----
Signature of Date 6 December
D Frost
Treasurer 2021
Name David Frost
Address 9 Coombe Rise,
Oadby, Leicester,
LE2 5TJ
----- End of picture text -----

Presentation to the Church Council for approval.

I confirm that the Accounts have been presented to the Church Council on 6 December 2021 and were approved.

Signature of the D McLean Chair of the meeting

Name of the Chair of Rev Derek McLean the meeting Date 6 December 2021 _______________

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Statement of Financial Activities for the year ended 31 August 2021

	Notes to the accounts	Unrestricted funds	Designated Funds	Restricted Funds	Total 2020-21
		£	£	£	£
Income and Endowments from:
Donations and legacies
- Collections and tax credit		64,931	-	-	64,931
- Donations &grants		22,830	-	-	22,830
- Legacies		-	-	-	-
Charitable activities		-
- Fund raising		-			-
- Others		2,149			2,149
Other tradingactivities		-
- Lettings		7,905			7,905
- Zak's café		73,966	-	-	73,966
Investments		-	-	73	73
Other		-
- Internal organisations		-	-	80	80
- Covid supportgrants		53,030	-	-	53,030
Total		224,811	-	153	224,964
Expenditure on:
Salaries,NIC & Pension costs	6	84,434			84,434
Circuit Assessment		51,783			51,783
Repairs and maintenance		15,856	-		15,856
Café direct sales		17,426			17,426
Utilities(insurance,heat and light,water,etc)		10,455			10,455
Expenditure on otherproperty		-			-
Depreciation	9	5,226			5,226
Interest on loans		-	-	-	-
Internal organisations		-	-	479	479
Grants and Donations		6,300		-	6,300
Other expenditure		18,401		-	18,401
Total		209,881	-	479	210,360

Net income/(expenditure)		14,930	-	(326)	14,604
Transfers between funds		0	-	-
		14,930		(326)	14,604
Other recognisedgains/ (losses):
Gains/(Losses)on revaluation of fixed assets					-
Gains/(Losses)on investment assets					-
Net movement in funds		14,930		(326)	14,604
Reconciliation of funds:
Total funds brought forward		2,735,909	39,500	18,297	2,793,706
Total funds carried forward		2,750,839	39,500	17,971	2,808,310

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Comparative Statement of Financial Activities for previous year ended 31 August 2020

	Notes to the accounts	Unrestricted funds	Designated Funds	Restricted Funds	Total 2019-20
		£	£	£	£
Income and Endowments from:
Donations and legacies
- Collections and tax credit		59,477	-	65	59,542
- Donations &grants		13,582	-	2,950	16,532
- Legacies		-	-	-	-
Charitable activities		-
- Fund raising		-			-
- Others		3,116			3,116
Other tradingactivities		-
- Lettings		24,733			24,733
- Zak's café		116,223	-	-	116,223
Investments		399	-	12	411
Other		-
- Internal organisations		-	-	3,084	3,084
- Covidgrant support		27,790	-	-	27,790
Total		245,320	-	6,111	251,431
Expenditure on:
Salaries,NIC & Pension costs	6	101,620			101,620
Circuit Assessment		54,416			54,416
Repairs and maintenance		23,469	-		23,469
Café direct sales		25,742			25,742
Utilities(insurance,heat and light,water,etc)		17,577			17,577
Expenditure on otherproperty		-			-
Depreciation	9	6,616			6,616
Interest on loans		-	-	-	-
Internal organisations		-	-	4,135	4,135
Grants and Donations		7,788		-	7,788
Other expenditure		21,298		-	21,298
Total		258,526	-	4,135	262,661

Net income/(expenditure)		(13,206)	-	1,976	(11,230)
Transfers between funds		(1,785)	2,500	715 -
		(14,991)		1,261	(11,230)
Other recognisedgains/ (losses):
Gains/(Losses)on revaluation of fixed assets					-
Gains/(Losses)on investment assets					-
Net movement in funds		(14,991)	2,500	1,261	(11,230)
Reconciliation of funds:
Total funds brought forward		2,750,900	37,000	17,036	2,804,936
Total funds carried forward		2,735,909	39,500	18,297	2,793,706

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Balance Sheet as at 31 August 2021

Notes Tangible Fixed Assets*	Notes Tangible Fixed Assets*	Unrestricted £	Designated (Unrestricted)	Restricted £	Totals this year £

Land & Buildings	9	2,670,000			2,670,000
Equipment	9	14,459			14,459
Investmentproperties
Investments
*Totalfixed assets*		2,684,459			2,684,459
Current Assets
Stock		2,178			2,178
Debtors and Prepayments		38			38
Cash at Bank and in hand		27,382			27,382
Trustees for Methodist Church Purposes deposits
Central Finance Board Deposits		24,772	30,019	16,334	71,125
Other		13,450	9,481	1,637	24,568
*Total current assets*		67,820	39,500	17,971	125,291
Creditors and Accruals (due in under 1yr)		1,440			1,440
Net current assets(liabilities)		66,380	39,500	17,971	123,851
*Total assets less current* *liabilities*		2,750,839	39,500	17,971	2,808,310

Loans and creditors due after 1 year
Provisions for liabilities and charges

*Net assets*	8	2,750,839	39,500	17,971	2,808,310
Funds of the Church
Unrestricted funds		2,750,839	39,500		2,790,339
Restricted funds	12			17,971	17,971
Endowment funds
*Total Funds*		2,750,839	39,500	17,971	2,808,310

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Comparative Balance Sheet for 31 August 2020

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Notes to the Accounts

1 Basis of accounting

The financial statements have been prepared under the Charities Act 2011 in accordance with the 2015 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS102 – the Charities SORP (FRS102) and taking note of the Update Bulletins 1 and 2.

2 Funds

The funds held constitute: General Funds held for any purpose of the Church which are Unrestricted, this includes the funds held for the operation of Zak’s cafe. There are a number of Designated funds which are being held for specific purposes while the Restricted funds include the internal organisations of the church which are under the direct control of the church council, There are no Endowment funds. Any funds may be represented by more than just cash.

3 Accounting policies

Basis

These accounts have been prepared on the basis of historical cost except that the church building is included at deemed cost being the Insurance valuation in 2015.

Incoming Resources

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.

Covid furlough scheme funding has been treated as income within the 2020-21 accounts and the previous years accounts have been revised to reflect this treatment..

Resources Expended

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 Church to pay out resources.

VAT

VAT incurred on the cost of purchases for the running of the church is charged as a cost of operation, while the VAT related to the operation of , Zak’s is recovered against output tax raised on sales.

Tangible fixed assets for use by the Church and Cafe

Tangible fixed assets are capitalised if they can be used for more than one year, and cost at least £500. The freehold property is shown in the accounts at 2015 deemed values, of which the land component is deemed to be £400,000. No depreciation is provided on the buildings because the trustees consider the current residual fair value of the building (on the assumption that it had reached the end of its useful economic life by the year-end) to be not less than its current value. Any depreciation would not be material. The properties have been reviewed for impairment.

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

All debtors relate to the trading activity of the café,.

Creditors

Creditors include both sundry expenses.

4 Payment to Trustees

There were no payments made to trustees for additional services provided to the Church.

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5 Fees for examination or audit of the accounts

	2019/20 £ Nil Nil 2020/21 77,692 3,985 2,757 84,434 5 Nil	2018/19 £
	Nil	Nil
	Nil	Nil
£ £ £ £		2019/20
		92,037
		4,796
		4,787
		101,620

		5
		Nil

6 Paid employees

7 Capital Commitments and Contingent Liabilities

8 For information only Money received and passed on to External Organisations


Balance brought forward from last year Offerings/Gifts - received for External Organisations Offerings/Gifts - passed to External Organisations Balance carried forward	2020/21	2019/20
	£	£

	1,918	566
	1,918	566
	0	0

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9 Tangible Fixed Assets Cost or valuation

	Land £	Buildings £	Fixtures, fittings and equipment £	Total £
Balance brought forward	400,000	2,270,000	64,242	2,734,242
Additions
Revaluations (+/-)
Disposals (-)
Transfers*(+/-)
Balance carried forward	400,000	2,270,000	64,242	2,734,242

Balance carried forward 400,000 2,270,000 64,242 2,734,242	Balance carried forward 400,000 2,270,000 64,242 2,734,242	Balance carried forward 400,000 2,270,000 64,242 2,734,242
Accumulated depreciation
Balance brought forward	44,557	44,557
Depreciation charge for year (-)	5,226	5,226
Revaluations (+/-)
Disposals (-)
Transfers*(+/-)
Balance carried forward	49,783	49,783

Net book value

Net book value
Brought forward	400,000	2,270,000		19,685		2,689,685
Carried forward	400,000	2,270,000		14,459		2,684,459

10 Investment assets

The church has no Investment properties

The church has no common investment fund holdings

11 Loans

The Church currently has no loans outstanding

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12 Analysis of restricted funds

Restricted Fund Name	Opening Balance	Incoming Resources	Resources Expended	Closing Balance	Purpose of the fund

Benevolence Fund	869	0	0	869	Support for individuals in specific need


Welcome on Wednesday	606		215	391	Internal group.


Thursday Fellowship	464			464	Internal group.

J C Ward fund	1,697	1		1,698	Building maintenance fund

Vickerman organ fund	10,211			10,211	Organ repair fund

Zephs’ Purse	966	80	264	782	Café hospitality fund

Outreach fund	3,484			3,484	Support for community outreach initiatives

Totals	18,297	81	479	17,899

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Independent Examiner’s Report to the Trustees of Oadby Trinity Methodist Church

Responsibilities and basis of report

I report to the trustees on my examination of the accounts of the Oadby Methodist Church for the year ended 31 August 2021 set out on pages 11 to 18.

As the Church's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Church's accounts carried out under section 145 of the Act and, in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner's Statement

The Church's gross income did not exceed £250,000 and I am qualified to undertake the examination by being a qualified member of Chartered Institute of Management Accountants.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below*) which gives 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 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 accounts to be reached.

I 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

William Keith Brooks ACMA

Address

2a Stanfield Road Duston Northampton

Date

3[rd] December 2021

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Appendix A

CHURCH COUNCIL MEMBERSHIP

Managing Trustees (Church Council Members), 2020-2021

Revd Derek McLean (Chair) Revd Paula Hunt (Superintendent Minister) Revd Daniel Yovan David Adams June Aldridge (to 30th September 2020) Graham Austen Alison Baker Barbara Bell Ian Bell Donald Candlin Marion Candlin Helen Cooper Anne Dodge Michael Elliott David Frost (Church Treasurer) Lesley Green Charles Hilton (Circuit Steward) Suzanne Kelly Penny Lee Tricia Lockley Christine McLean Diane Price Barbara Sansom Howard Smith (Church Council Secretary/Charity Commission contact) Barry Wilford (Senior Church Steward) Janice Wilford Jonathan Wilford Alison Wootton

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