**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:
- a select suitable accounting policies and then apply them consistently;
- b make judgements and estimates that are reasonable and prudent;
**THE METHODIST HOMESTEAD**
**3**
## **REPORT OF THE DIRECTORS – CONTINUED**
- c state where the policies adopted are in accordance with the Charities Act 2011 Statements of Recommended Practice and with applicable accounting standards, subject to any material departures disclosed and explained in those financial statements.
- d prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue to operate.
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:-
**----- Start of picture text -----**
S R Edmonds Director
J A Smith Director
**----- End of picture text -----**
**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
**----- End of picture text -----**
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:-
**----- Start of picture text -----**
- S R Edmonds – Director
**----- End of picture text -----**
**----- Start of picture text -----**
- J A Smith – Director
**----- End of picture text -----**
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.