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2022-12-31-accounts

THE METHODIST HOMESTEAD (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] DECEMBER 2022

COMPANY NO 8295082 REGISTERED CHARITY NO. 1150018

THE METHODIST HOMESTEAD (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] DECEMBER 2022

COMPANY NO 8295082 REGISTERED CHARITY NO. 1150018

CONTENTS

  1. Legal and Administrative Details 2 – 3 Report of the Directors 4 Independent Examiners' Report 5. Statement of Financial Activities 6. Balance Sheet 7 – 12 Notes to the Financial Statements

1

THE METHODIST HOMESTEAD

(A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] DECEMBER 2022

COMPANY NO 8295082 REGISTERED CHARITY NO. 1150018

LEGAL AND ADMINISTRATIVE DETAILS

LEGAL STATUS

A Company limited by guarantee incorporated 15 November 2012. A Registered Charity Number 1150018 appointed the sole Corporate Trustee of The Methodist Homestead (1929) Registered Charity Number 1150018-1

DIRECTORS S R Edmonds Chair Mrs E McAteer Vice chair Dr A M Dean – retired 24[th] May 2022 Mrs K Brown Mrs S Dorman R K Harland – retired 22[nd] August 2023 A Robinson J A Smith J Burditt – retired 20[th] August 2023 Mrs M Cochran – retired 20[th] August 2023 Mrs C Baldwin COMPANY SECRETARY A K Cochran – retired 15[th] November 2022 Mrs J Talarek – appointed 15[th] November 2022 REGISTERED OFFICE 14 The Methodist Homestead Homestead Way Northampton NN2 6JH BANKERS Barclays Bank plc Northampton Group P O Box 23 Northampton NN1 4YD INDEPENDENT EXAMINERS CVS Northamptonshire 32-36 Hazelwood Road Northampton NN1 1LN SOLICITORS Shoosmiths The Lakes Northampton NN4 7SH

THE METHODIST HOMESTEAD

2

REPORT OF THE DIRECTORS

The Directors present their annual report and financial statements of the Company for the year ended 31[st] December 2022

OBJECTIVES OF THE CHARITY

To relieve poverty and advance the Christian Faith by providing homes in a caring, Christian environment primarily for:-

Members of Methodist Churches in the Northampton Circuit Retired Methodist Ministers and their Spouses

Persons of limited means who are Christians of any denomination

PUBLIC BENEFIT STATEMENT

Independent living accommodation is provided to elderly persons who have a financial or welfare need that can be met through occupancy of a single or double occupancy cottage at the Homestead.

REVIEW OF DEVELOPMENTS, ACTIVITIES AND ACHIEVEMENTS DURING THE YEAR

The Directors continued to run the Homestead in accordance with the objectives of the Charity, providing independent living accommodation for its residents. Necessary decoration, refurbishment and improvement works have continued to be carried out during the year. The capital improvement programme of extending the older type of homes has continued during the year.

REVIEW OF THE CHARITY'S FINANCIAL ACTIVITIES

Residents’ contributions remained stable in comparison to the previous year.

The Directors continued the policy of focussing expenditure on necessary repairs, refurbishments and improvements including security to the homes and the estate. This is reflected in the level of expenditure on repairs and renewals and continued capital improvements. Other expenditure continued to be well controlled with Total Net Incoming Resources amounting to £43,760 (2021 - £12,231).

The Directors are satisfied with the level of net income generated for the year and are of the opinion that adequate funds are being maintained for the continued satisfactory operation of the Homestead.

DIRECTORS

Directors are recruited from time to time taking into account the profile of the Board and elected on the approval of Board members. No Directors are in receipt of any benefits from the charity.

The following Directors retire by rotation and seek re-election at the Annual General Meeting to be held on 22[nd] August 2023.

Mrs K Brown J A Smith Mrs S Dorman

Mr R K Harland has notified his retirement as a Director and will not be seeking reappointment.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

Legislation requires the directors 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 its financial activities for that period. In preparing those financial statements the directors are required to:

THE METHODIST HOMESTEAD

3

REPORT OF THE DIRECTORS – CONTINUED

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

POLICY ON RESERVES

The directors consider that the unrestricted fund of £245,766 at 31[st] December, 2022 is sufficient to sustain its operations should income generating activities be curtailed unexpectedly over the forthcoming year.

RISK MANAGEMENT

The directors have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate our exposure to the major risks.

TRAINING OF DIRECTORS

Directors undergo an induction when they are first appointed to the Board. Directors are kept up to date throughout the year with notifications from the Charity Commission by the Company Secretary

INDEPENDENT EXAMINERS

A resolution in accordance with Section 144 of the Charities Act 2011 to appoint CVS Northamptonshire will be put to the directors at the Annual General Meeting.

This report was approved by the directors on 22[nd] August 2023 and signed on their behalf by:-

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S R Edmonds Director
J A Smith Director
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THE METHODIST HOMESTEAD

5

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st DECEMBER 2022

----- Start of picture text -----
Building and Building and
Equipment Equipment
General Fund Capital Fund General Fund Capital Fund
Fund Restricted Designated 2022 total Fund Restricted Designated 2021 total
£ £ £ £ £ £ £ £
Income & Expenditure
Income from:
Donations and legacies 600 600 348 348
Charitable activities 150,827 150,827 131,666 131,666
Investments 6,567 6,567 4,249 4,249
Other 3 3 2 2
Total income 157,997 - - 157,997 136,265 - - 136,265
Expenditure on:
Raising funds - - - -
Charitable activities 114,237 114,237 124,034 124,034
Other - - - -
Total expenditure 114,237 - - 114,237 124,034 - - 124,034
Net income/(expenditure) 43,760 - - 43,760 12,231 - - 12,231
Net gains/(losses) on investments (27,724) (27,724) 27,431 27,431
Transfer between funds (10,472) 10,472 - (56,511) 56,511 -
Net movement of funds 33,288 10,472 (27,724) 16,036 (44,280) 56,511 27,431 39,662
Reconciliation of funds - -
Total funds b/fwd 212,478 2,030,684 212,011 2,455,173 256,758 1,974,173 184,580 2,415,511
Total funds c/fwd 245,766 2,041,156 184,287 2,471,209 212,478 2,030,684 212,011 2,455,173
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All income and expenditure derives from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

THE METHODIST HOMESTEAD

6

BALANCE SHEET AT 31ST DECEMBER 2022

Note
Fixed Assets
Tangible assets
2
Investments
3
Current Assets
Debtors & Accrued income
4
Money on short notice
5
Cash at bank and in hand
6
Creditors:Amounts
falling due within 1 year
7
Net current assets
Net assets
Represented by:
Unrestricted funds:
General Fund
8
Designated funds:
Capital Fund
8
Restricted funds:
Permanent endowment
8		 £
£
2,041,156
184,287
2,225,443
7,789
69,188
196,873
273,850
(28,084)
245,766
2,471,209
245,766
184,287
2,041,156
2,471,209
2022		 £
£
2,030,684
212,011
2,242,695
7,683
68,383
168,050
244,116
(31,638)
212,478
2,455,173
212,478
212,011
2,030,684
2,455,173
2021		 £
£
2,030,684
212,011
2,242,695
7,683
68,383
168,050
244,116
(31,638)
212,478
2,455,173
212,478
212,011
2,030,684
2,455,173
2021
2,242,695
212,478
273,850 244,116
(28,084) (31,638)
2,455,173
212,478
212,011
2,030,684
2,455,173

For the Financial Year ended 31st December 2021 the Company was entitled to exemption from Audit under Section 477 of the Companies Act 2006 . The members have not required the Company to obtain an Audit in accordance with Section 476 of the Companies Act 2006 . These financial statements were approved by the Directors on 24th May 2022. and signed on their behalf by:-

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- S R Edmonds – Director
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- J A Smith – Director
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The notes on pages 7 to 12 form part of these financial statements

THE METHODIST HOMESTEAD

7

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] DECEMBER 2022

1 . ACCOUNTING POLICIES

Accounting convention

The financial statements of the Charitable Company, which is a public benefit entity under FRS102, have been prepared under the historical cost convention and in accordance with the Companies Act 2006, and the Statement of Recommended Practice SORP (FRS102) issued on 1st October 2019, applicable UK Accounting Standards and the Charities Act 2011.

Linked Charity

The Methodist Homestead is the Sole Corporate Trustee of the Methodist Homestead (1929) charity registered number 1150018-1. The Charity Commission have confirmed that the two charities can be treated as Linked Charities for accounting purposes. The Methodist Homestead (1929) is dormant and its sole purpose is to hold the Permanent Endowment represented by the Freehold Land and Buildings for the benefit of the activities of the Methodist Homestead.

Depreciation

Depreciation is provided on tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life as follows:-


sidual value, of each asset over its
expected useful life as follows:-
Freehold land and buildings Depreciation is not charged because the
assets have a very long useful life and the
estimated residual value is not materially
different from the carrying value.
Equipment 25% straight line per annum
Furniture and utensils 20% straight line per annum
Bungalow fixtures 6.67% straight line per annum
Call care system 12.5% straight line per annum

Expenditure is capitalised when it is truly of a capital nature and only if it exceeds £5,000.

Incoming Resources

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Donations and legacies

Donations, legacies and voluntary income are included in the Statement of Financial Activities as they are received. The value of voluntary help is not included in the financial statements.

Investment Income

Interest on investment funds and cash on deposit is included in the Statement of Financial Activities when received, at an amount which includes any tax credits recoverable from the Inland Revenue.

Cashflow Statement

The financial statements do not include a cashflow statement because the Charity, as a small reporting entity is exempt from the requirement to prepare such a statement under Financial Reporting Standard 1.

THE METHODIST HOMESTEAD

8

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

1 . ACCOUNTING POLICIES (cont.)

Pensions

Current members of staff are enrolled in a Workplace Pension Scheme, with an employer’s contribution of 5%.

Investments

These are included in the balance sheet at the value ruling on the balance sheet date and are stated at the average of the bid and offer price as at that date.

General Fund

Sums of cash at any time belonging to the charity and not needed for immediately working purposes shall be invested in the name of the charity, whilst the general fund consists of all the working capital used for the day to day running of the charity.

Designated Funds

These are amounts which have been set aside at the discretion of the directors for specific, but not legally binding purposes.

Restricted Fund

The restricted fund is the permanent endowment of the linked charity the Methodist Homestead (1929) Registered Charity Number 110018-1 and is only available for the specific use as defined by the permanent endowment.

THE METHODIST HOMESTEAD

9

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2022 (CONTINUED)

2. FIXED ASSETS

Cost or valuation
At 1st January 2022
Additions
At 31 December 2022
Depreciation:
At 1st January 2022
Charged for the year
At 31 December 2022
Net book amount:
At 31 December 2022
At 31st December 2021		 Freehold
Furniture
Land and
and
Bungalow
Call Care
Garage/
Buildings
Equipment
utensils
Fixtures
System
workshop
Total
£
£
£
£
£
£
£
2,030,684
22,077
8,194
3,289
13,587
-
2,077,831
-
-
-
-
-
11,220
11,220
2,030,684
22,077
8,194
3,289
13,587
11,220
2,089,051
-
22,077
8,194
3,289
13,587
-
47,147
-
-
-
-
-
748
748
-
22,077
8,194
3,289
13,587
748
47,895
2,030,684
-
-
-
-
10,472
2,041,156
2,030,684
-
-
-
-
-
2,030,684

The freehold land and buildings are a permanent endowment of the linked charity the Methodist Homestead (1929) Registered Charity Number 1150018-1, and as a restricted fund are therefore only available for the specific use as defined by the permanent endowment.

3. INVESTMENTS

At commencement of year
At 1st January 2022
Disposals
Realised gain
Unrealised (loss)/gain
At 31 December 2022		 No.Shares
Cost
Valuation
No.Shares
Cost
Valuation
£
£
£
£
£
36,623
41,514
212,011
36,623
41,514
184,580
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(27,724)
-
-
27,431
36,623
41,514
184,287
36,623
41,514
212,011
2022
2021

THE METHODIST HOMESTEAD

10

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2022

(CONTINUED)

4.
DEBTORS
Trade debtors
Prepayments
Accrued income
5.
MONEY ON SHORT NOTICE
Methodist Church Fund deposit
CFB No. 1 account
CFB No. 2 account
CFB Building Fund account
6.
CASH AT BANK AND IN HAND
Current Account
Cash in hand
7.
CREDITORS:
Amounts falling due within one year
Trade creditors
Accruals		 2022
£
-
6,060
1,729
7,789
2022
£
978
57,306
10,904
69,188
2022
£
196,773
100
196,873
2022
£
921
27,163
28,084		 2021
£
675
5,661
1,347
7,683
2021
£
967
56,639
10,777
68,383
2021
£
167,950
100
168,050
2021
£
-
31,638
31,638

THE METHODIST HOMESTEAD

11

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2022 (CONTINUED)

8. FUNDS MOVEMENT

Funds brought forward
at 1st January 2022
Additions in year
Net incoming/(outgoing)
resources for the year
Net investment gains
Realised
Unrealised
Funds carried forward
at 31st December 2022
Funds brought forward
at 1st January 2022
Additions in year
Net incoming/(outgoing)
resources for the year
Net investment gains
Realised
Unrealised
Funds carried forward
at 31st December 2022		 Building and
Equipment
Capital
General
Fund
Fund
Fund
Restricted
Designated
Total
£
£
£
£
256,758
1,974,173
184,580
2,415,511
(56,511)
56,511
-
12,231
12,231
-
27,431
27,431
212,478
2,030,684
212,011
2,455,173
212,478
2,030,684
212,011
2,455,173
(10,472)
10,472
-
43,760
43,760
-
(27,724)
(27,724)
245,766
2,041,156
184,287
2,471,209

The general fund represents the free funds of the charity which are not designated for particular purposes.

The Building and Equipment Fund has been set up to assist in identifying the restricted fund of the permanent endowment of the linked Charity, and it represents the net book value of the tangible fixed assets.

9. VALUE OF FUNDS BY CATEGORY

Value held in:-
Tangible fixed assets
Fixed asset investment
Current assets
Current liability
Total value of funds		 Building and
Equipment
Capital
General
Fund
Fund
Fund
Restricted
Designated
2022
2021
£
£
£
£
£
2,041,156
2,041,156
2,030,684
184,287
184,287
212,011
273,850
273,850
244,116
(28,084)
(28,084)
(31,638)
245,766
2,041,156
184,287
2,471,209
2,455,173

THE METHODIST HOMESTEAD

12

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2022 (CONTINUED)

10 DIRECTORS REMUNERATION AND REIMBURSED EXPENSES

The Directors were not paid any remuneration from the charity during the year. No expenses were reimbursed to the Directors during the year. The charity paid Directors indemnity insurance being £484 (2021 - £484)

11 WAGES AND SALARIES

Wages and salaries
Pension contributions
The average number of employees
during the year was:-
Warden
Gardener
Clerk		 2022
£
33,273
988
34,261
No.
1
1
1		 2021
£
29,497
365
29,862
No.
1
1
-

12 INDEPENDENT EXAMINERS REMUNERATION

A provision for remuneration has been made within these financial statements amounting to £540 (2021 - £720)

13 CONTROLLING PARTY

The charity is controlled by the Directors of the charity.

14 PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other charities of our size and nature, we use our auditor to assist us with the preparation of the final statements.