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2021-03-31-accounts

Charity number: 1153980

THE CHURCH AT CARRS LANE

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

THE CHURCH AT CARRS LANE

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 10
Independent examiner's report 11
Statement of financial activities 12
Balance sheet 13
Notes to the financial statements 14 - 31
Appendix I - Capital contributions and withdrawals to the Local Ecumenical
Partnership

THE CHURCH AT CARRS LANE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Caroline Ruth Ambler (appointed 1 January 2021)
Joe Bullen (appointed 22 February 2022)
Revd Anna Cristina Cipriani
Diana Lynne Joyce Cullum-Hall (resigned 15 December 2020)
Elizabeth Barbara Cummings (appointed 1 January 2022, resigned 15 December
2020)
Peter Mervyn Cummings (appointed 19 January 2022)
Derek Charles Duffield (resigned 15 December 2020)
Julia Elizabeth Grove (resigned 15 December 2020)
Revd Neil Wharrier Johnson (resigned 31 August 2022)
Christine Anne Tudor Jones (appointed 1 January 2021)
Taiwo Christopher Makanjuola (appointed 1 January 2021)
Matthew John Neville
Steph Neville (appointed 1 January 2021, resigned 31 December 2021)
Dr Michael Richer (appointed 1 January 2022)
Janis Mary Scott (resigned 31 December 2021)
Revd Suzanne Shortman (appointed 30 September 2022)
Martin Stokes
Andrew Thomas Veitch (resigned 31 December 2021)
Peter Malcolm Woodall
Christopher David Yorke (resigned 31 August 2021)
Deacon Ruth Brenda Yorke
Charity registered
number
1153980
Principal office
Carrs Lane
Birmingham
B4 7SX
Accountants
MHA MacIntyre Hudson
Chartered Accountants
Rutland House
148 Edmund Street
Birmingham
B3 2FD
Bankers
CAF Bank Limited
West Malling
Kent
ME19 4TA
Solicitors
Veale Wasbrough Vizards LLP
Second Floor
3 Brindley Place
Birmingham
B1 2JB
Keeleys - Solicitors for employment issues
28 Dam Street
Lichfield
WS13 6AA

Page 1

THE CHURCH AT CARRS LANE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Investment advisers

Quilter Cheviot 2 Snowhill Birmingham B4 6GA

Page 2

THE CHURCH AT CARRS LANE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the financial statements for The Church at Carrs Lane (the charity) for the year ended 31 March 2021. The Trustees confirm that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard 102.

Objectives and activities

Policies and objectives

In furtherance of our charitable objects, it is our mission to be a community of Christians which seeks to respond honestly and imaginatively to the challenge to live out the Christian life in the centre of a 21st century city. As part of our becoming a Local Ecumenical Partnership (LEP) the following Guiding Principles have been adopted by Trustees and approved by Church Meeting:

Guiding principles

Together we seek to embody what is means to proclaim God incarnate at the heart of Birmingham as:

Therefore:

Page 3

THE CHURCH AT CARRS LANE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

Review of activities

The Church at Carrs Lane holds the assets of the former Carrs Lane Church Centre and Birmingham Methodist City Mission (BMCM). The Church at Carrs Lane acts as the managing trustee for the former investment portfolio of BMCM held by the Trustee for Methodist Church Purposes. A significant part of those investments has been used in past years to fund the refurbishment of Dale House and make other improvements to the building.

The activities of the Church were necessarily curtailed during the Covid-19 Pandemic and associated lockdowns. The Church website was regularly updated and gave details of The Church at Carrs Lane and related activities.

Until September 2020, the wholly owned trading company 'Carrs Lane Conference Centre Limited' had responsibility for the day to day management of the meeting room hire business, day to day supervision of employees and the building. The Directors of the trading company were appointed by the Elders/Trustees. The trading company paid a percentage of its turnover as a licence fee and any profits were covenanted to The Church at Carrs Lane. All employees were jointly employed by the church and the trading company. From September 2020, these functions transferred directly to the Church.

During the year, sadly, both the CLC Bookshop and the Carrs Lane Fair Trade shop ceased to trade.

Revd Elaine Hutchinson, the team leader of the Retail Chaplaincy, continued to co-ordinate retail chaplaincy in city centre retail areas, and explore new ways of responding to the difficult situations during and following lockdown.

There was a reduction of two members leaving a total of 62 members.

Public worship services are held on Sunday mornings, attendance at which was significantly impacted by the pandemic. Numbers are roughly two thirds of previous congregations.There also continued to be a service on Wednesday lunchtimes. The Church continued its life of worship and service during the lock-down but in very different ways. Worship in this period was largely recorded or showed as live broadcasts through Facebook and YouTube streaming. When allowed and safe to do so, the Church resumed in-person worship while maintaining the online presence together with congregational meetings through Zoom. Other activities have continued online where possible but many have not been able to meet. The Church has sought to maintain and develop links with partner organisations and provide support through chaplaincy and practical work.

Carrs Lane Lived Community, continued its ministry of regular prayer either online or in person, as well as involvement in a variety of projects supporting different groups in the city, including the homeless and refugees and asylum seekers; and campaigning on peace and social justice issues.

The Street Banquet for members of the homeless community and other vulnerable adults continues, when possible, on a periodic basis, and welcomed many people on each occasion.

A permanent children’s area in the main church room makes clear the value placed on our younger members. Latterly focus has been on encouraging and supporting young families as there are no older young people attending junior church at present.

The Revd Cristina Cipriani continued to serve as URC minister in a joint pastorate with Digbeth-in-the-Field URC in Yardley. The Revd Dr Neil Johnson continued to serve as Methodist Minister in addition to his wider responsibilities in the Birmingham Methodist Circuit.

Page 4

THE CHURCH AT CARRS LANE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

As far as possible, our Methodist Deacon, Ruth Yorke, continued with city centre engagement and mission connections with a range of partners, some of whom use our Partnership Room and other parts of the premises. She engages with Birmingham Christian Homelessness Forum, which is useful in knowing more about what provision and issues are in the city centre. She is also spending time enabling us to increase our engagement with the City Centre through City Centre Churches Together and other groups.

When lockdown prevented us offering space, we kept in touch with our partner, Shelter, and with other agencies, including those who had been using the Partnership Room. We made contact with people early in lockdown and ensured that some of the most vulnerable people known to us had contacts with those providing food parcels and other support. We are now able to offer space again and Crisis Skylight are using the Partnership Room for 1:1 work, and we have made what used to be the bookshop available to the other groups who had been using the Partnership Room but who would not currently ‘fit’ there with distancing requirements. By the end of the year, this space is being used by Hope for Jobs, MIND, Stories of Hope and Home, the church’s parent and toddler group for refugees and asylum seekers. In this way, we are trying to use the resources we have to enable important work that we know we may not be able to accomplish by ourselves, but which we are passionate about. This is an ongoing work, and the Deacon continues to seek to identify the needs and help us to find ways to address them and work with others as we do so. The Church has continued to learn and act on issues of racial justice and is currently planning ‘next steps’.

We are Partners too with Inclusive Gathering Birmingham, and very keen to support their important ministry, and grateful for their support and sharing too.

The Church considers it critical to address issues of racism awareness with the aim of being anti-racist. Many from the church engaged in an anti-racist book group and reflecting on Racial justice through worship.

The young adults’ group (which includes students of varying ages as well as young professionals) met regularly online and is generally led by the members. We welcomed 5 new people to this group since lockdown began and are delighted that most have stayed and become part of the church. For Lent, the group put together a selection of prayers, resources and activities which our deacon then posted out to the wider church as a gift from the group. This was appreciated by the whole church. The URC Lent packs were also sent to the young adults group.

As a church we continue to work on different aspects of inclusion, including anti-racism. Carrs Lane, is a church which is open to discussion and sharing different ideas without judgement, and is a safe place for people who are LGBT+, so this is important to who we are and why people ‘look us up’. We are still exploring the depths of people’s experiences and how we move from inclusion and belonging to solidarity and deeper understanding.

City Centre Churches Together has been meeting online during lockdown and, for the second time now, the Good Friday ecumenical walk of witness was ‘virtual’ (online). This year we offered an ecumenical service online with a message from our regional denomination leaders (part of which was shown on ITV news on Good Friday). 'Christians at Pride Birmingham' was ‘virtual’ in 2020 and Ruth gathered people online to make a ‘blessings for Pride’ video which was watched many times across all the church social media and websites. A clip of it was shown at Birmingham Virtual Pride and seen by more than 2000 people who were watching it live.

Page 5

THE CHURCH AT CARRS LANE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Looking to the future

Public benefit

In reviewing the year, the Trustees have taken into account the Charity Commission's guidance on public benefit and the two principles that:

They have also considered the specific guidance on charities for the advancement of religion.

The Trustees believe that The Church at Carrs Lane provides identifiable benefits which are open to all who wish to participate in its life and development.

Attendance at the Church's activities is open to all, although anyone wishing to become a member does so on a profession of faith according to the practices of the LEP.

No private benefit accrues. It should be noted that unpaid members of the resident community, while receiving a benefit of accommodation, return that benefit through the contribution they make to the work and mission of the Church, which is a condition of their residence.

Page 6

THE CHURCH AT CARRS LANE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Financial review

Reserves policy

General purposes fund

Object: To use income arising from the activities of The Church at Carrs Lane to support the charitable objects to advance the Christian religion in accordance with the doctrines, principles and usages of the Church in accordance with the terms of the Local Ecumenical Partnership.

Reserves policy: Unrestricted funds are needed to assist with a proper stewardship of the Church's assets and to help cover related administration costs. The Trustees consider it prudent to have adequate working capital to enable its activities to proceed unhindered. At 31 March 2021 the balance in this fund was £74,948 and the Trustees consider this to be adequate for that purpose.

Youth fund

Object: Funds were given to assist the Church with youth work.

Reserves policy: A designated fund that can only be expended on projects which benefit children, young people or young adults up to the age of thirty years. Those benefiting may be children of the congregation, members of the congregation or anyone under the age of thirty for whom it is deemed appropriate. At 31 March 2021 the balance in this fund was £2,787.

Investment portfolio

Object: Funds mainly contributed by Carrs Lane Church Centre and subsequent legacies. The Trustees have resolved to invest funds arising from previous legacies and other sources in order to provide a source of income to support the Church's charitable objects

Reserves policy: A designated fund that can only be invested ethically as determined by the Trustees in order to provide an income source. Currently, on the recommendation of the Finance Committee, the funds are externally managed on a discretionary basis. At 31 March 2021 the balance in this fund was £907,972.

Tangible fixed assets

Objects: To reflect previous expenditure on the building and fixtures and fittings by the Trustees in order to enhance the premises for the purposes of meeting the Church's charitable objects.

Reserves policy: A designated fund which matches the depreciated book value of tangible fixed assets, reflecting the historic spending on improvements to the building rather than resources available for future use. At 31 March 2021 the balance in this fund was £611,118.

Funds held by The Trustees for Methodist Church Purposes

Objects: These funds represent those funds contributed by Birmingham Methodist City Mission to the Local Ecumenical Partnership ("LEP") which are held by the Trustees for Methodist Church Purposes.

Reserves: The funds can be used in furtherance of mission in the City Centre which falls within the charity's objects but if applied for improvement/development of the church building, would be restricted to the extent that on dissolution of the LEP the Methodist Church would hold a charge over the property for a sum equivalent to the amount spent on the building. At 31 March 2021 the balance in this fund was £94,271.

Page 7

THE CHURCH AT CARRS LANE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Review of finances

Overall the net total funds of the Church reduced substantially by £235k from £1.926m to £1.691m at 31 March 2021. The Church continues to apply resources transferred from the two founding churches to support and enhance the ministry and mission of the Church. The Churches investments improved in value by £128k. Taking these amounts into account, the underlying position on the Church’s activities was a loss of around £362k.

These accounts show that this major financial shock occurred because of substantial losses of income. The main reason for this was that Carrs Lane Conference Centre Ltd was forced to cease trading during the national lockdowns, and only recovered a fraction of its business in the periods when lockdown was lifted. In addition, most of the tenants using the building on a commercial basis left either as a consequence of the national situation or other business reasons.

Expenditure overall generally reduced during the lockdown period but by nothing like the loss of income. In addition, the Church and Conference Centre made the difficult decision to make a number of staff redundant and the additional costs resulted in an increase in expenditure for the year.

Structure, governance and management

Constitution

The Church at Carrs Lane is a Single Congregation Local Ecumenical Partnership beween Carrs Lane Church Centre and Birmingham Methodist City Mission. It was created on 14 July 2013 as a registered charity, number 1153980. This body became active on 1 April 2014 taking over the worship-related activities of Carrs Lane Church Centre, with the transfer of assets of Carrs Lane Church Centre following on 1 July 2014 together with the assets of its Methodist Partner on 1 September 2014.

For the purposes of formalising the arrangements for maintaining the URC owned building, a sharing agreement had already been created on 26 March 2014 between the United Reformed Church (West Midlands) Trust Limited and the Birmingham Methodist City Mission. A deed amending the provisions of the sharing agreement was created on 31 October 2017. A joint council meeting with representation from both denominations meets annually to oversee and approve transactions.

Methods of appointment or election of Trustees

The Trustees are appointed by the Church Members by postal ballot to ensure that all members are able to vote if they wish.

Page 8

THE CHURCH AT CARRS LANE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Organisational structure and decision-making policies

Trustees have met monthly throughout the year. Aware of their responsibilities under Charity Law, the Trustees are also acting in accordance with the structures of the United Reformed and Methodist Churches, and take into account the important role of such bodies as the Church Officers, Church Meeting and Finance Committee.

The Trustees retain ultimate authority for the running and wellbeing of the Church, but in practice various bodies act on their authority. The Finance Committee oversees the investment portfolios, makes recommendations regarding a budget, and monitors income and expenditure. The Trustees receive regular financial reports from those meetings. The Trustees also formally approve the budget and financial statements and ensure that these are presented at the Annual Business Meeting of the Church in September.

The Trustees are responsible for the appointment of their advisers and review their appointment annually. Helen Blundell of MHA MacIntyre Hudson has acted as our independent examiner. During 2018 Charles Stanley was replaced as investment manager by Quilter Cheviot. Veale Wasborough Vizards LLP acts as main solicitor and Keelys LLP advises on employment matters.

Related party relationships

Be.friend city centre retail chaplaincy

Reverend Elaine Hutchinson continues her valued role as team leader of volunteer chaplains and was formally inducted as a minister of The Church at Carrs Lane in 2019. This important and valued ministry continues to be funded by the Anglican Church, Birmingham Methodist Circuit and The Church at Carrs Lane.

Carrs Lane Counselling Centre, a separate charity operating in the premises, continues its valuable work, by offering a first class BCAP accredited counselling service to adults, though raising sufficient funds to support its work has become significantly more difficult. Members of the Church serve on its governing body. It provides a minimal cost service and is an outworking of the church's commitment to the city in the light of its mental health needs.

The Church has been represented at the United Reformed Church West Midlands Synod, and also at the Birmingham Circuit Assembly and the Birmingham District Synod of the Methodist Church.

The Church at Carrs Lane continues to receive a significant annual grant from Joseph Scott's Chapel Charity. Members of the Church serve as representative trustees of the charity.

Plans for future periods

The Church continues to explore, through prayer and discernment, the way forward in the light of the significant changes which have occurred during this and the following year. The Church has concluded that the financial model, through which the Church activities are supported by conference business, will not recover. Also that the current building is no longer fit for purpose. Consequently, the Church is considering future options for redevelopment of the site whilst continuing the mission and ministry of the Church.

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THE CHURCH AT CARRS LANE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

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 & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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.

Approved by order of the members of the board of Trustees and signed on their behalf by: Date:

Page 10

THE CHURCH AT CARRS LANE

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021

Independent examiner's report to the Trustees of The Church at Carrs Lane ('the Charity')

I report to the charity Trustees on my examination of the accounts of 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 accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed 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 the accounts 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) 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 been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the 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:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. 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.

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed:

Dated:

Helen Blundell LLB FCA FCIE DChA

MHA MacIntyre Hudson Chartered Accountants Rutland House 148 Edmund Street Birmingham B3 2FD

Page 11

THE CHURCH AT CARRS LANE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net expenditure before net
gains/(losses) on investments
Net gains/(losses) on investments
Net (expenditure)/income
Transfers between funds
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
76,063
41,461
48,260
165,784
6,615
521,465
528,080
(362,296)
115,511
(246,785)
239,820
(6,965)
1,603,790
(6,965)
1,596,825		 Restricted
funds
2021
£
-
-
-
-
-
-
-
-
12,214
12,214
(239,820)
(227,606)
321,877
(227,606)
94,271		 Total
funds
2021
£
76,063
41,461
48,260
165,784
6,615
521,465
528,080
(362,296)
127,725
(234,571)
-
(234,571)
1,925,667
(234,571)
1,691,096		 Total
funds
2020
£
173,200
80,168
52,087
305,455
7,179
435,172
442,351
(136,896)
(130,321)
(267,217)
-
(267,217)
2,192,884
(267,217)
1,925,667

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 14 to 31 form part of these financial statements.

Page 12

THE CHURCH AT CARRS LANE

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 78,684
47,919
126,603
(52,183)		 2021
£
611,118
1,005,558
1,616,676
74,420
1,691,096
94,271
1,596,825
1,691,096		 134,076
28,621
162,697
(84,464)		 2020
£
725,915
1,121,519
1,847,434
78,233
1,925,667
321,877
1,603,790
1,925,667

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Date:

The notes on pages 14 to 31 form part of these financial statements.

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THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The Church at Carrs Lane is an unincorporated charitable trust registered with the Charity Commission in England and Wales with registered number 1153980. The registered office is shown on page 1. The principal activity of the charity is the advancement of the Christian faith in Birmingham in accordance with the principles and practices of the participating churches.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Church at Carrs Lane meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

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THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.2 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the contribution of church members and friends to the work set out in the Trustees' report is not recognised.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

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THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Expenditure (continued)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.5 Properties

The properties in use by The Church at Carrs Lane are registered in the name of The United Reformed Church (West Midlands) Trust Limited but held for the benefit of the Church. For this reason the cost of the properties is not reflected in the financial statements. Any capital works undertaken by the Church are capitalised and depreciated in accordance with the policy below.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

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THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.11 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.12 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 17

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Fixed assets - estimated useful lives Investments - estimate of fair value

4. Income from donations and legacies

Unrestricted
funds
2021
£
Donations
Offertories
36,418
Donations from trading subsidiary
-
Other donations
390
Grants
Joseph Scott's Chapel Charity
15,415
Church of England and Methodist Circuit contributions to
retail chaplaincy
11,340
Methodist Circuit grant
12,500
Legacies
-
Total 2021
76,063
Total 2020
173,200		 Total
funds
2021
£
36,418
-
390
15,415
11,340
12,500
-
76,063
173,200		 Total
funds
2020
£
42,952
46,917
1,024
17,995
12,095
31,826
20,391
173,200

Page 18

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5. Income from charitable activities

Unrestricted
funds
2021
£
Rental income
14,283
Licence fee - Carrs Lane Conference Centre Ltd
-
Income from mission activities
4,560
Coronavirus Job retention scheme
22,618
41,461		 Total
funds
2021
£
14,283
-
4,560
22,618
41,461		 Total
funds
2020
£
44,453
33,299
2,416
-
80,168

6. Investment income

Unrestricted
funds
2021
£
Dividend income
48,088
Bank interest
172
48,260		 Total
funds
2021
£
48,088
172
48,260		 Total
funds
2020
£
51,993
94
52,087

Page 19

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of grants

Grants
Total 2020		 Grants to
Institutions
2021
£
-
28,509		 Total
funds
2021
£
-
28,509		 Total
funds
2020
£
28,509

Page 20

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure by activities

Charitable Activities
Total 2020		 Activities
undertaken
directly
2021
£
281,728
300,187		 Grant
funding of
activities
2021
£
-
28,509		 Support
costs
2021
£
239,737
106,476		 Total
funds
2021
£
521,465
435,172		 Total
funds
2020
£
435,172

Analysis of direct costs

Staff costs
Depreciation
Ministry and mission contributions to URC/Methodist
Manse expenses
Pulpit, worship and pastoral supplies
Mission activities
Publicity and website
Musicians and music
Youth and student ministry
Residential community
Utilities and rates
Cleaning and refuse
Insurance
General maintenance
Major building repairs and refurbishment
Catering purchases
City Centre chaplaincy administrative costs		 Total
funds
2021
£
35,069
114,797
71,324
2,907
224
1,102
10
5,517
-
492
27,602
9,472
7,006
4,949
-
(52)
1,309
281,728		 Total
funds
2020
£
32,347
74,452
82,036
2,208
1,291
2,705
2,152
5,895
113
233
46,896
14,666
5,954
24,419
3,256
447
1,117
300,187

Page 21

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
City Centre chaplaincy administrative costs
Staff recruiment and training
Legal and professional
Office and communication costs
Independent examiner and accountancy fees
Bad debt provision
Exceptional item (Note 11)		 Total
funds
2021
£
169,344
-
4,200
1,659
10,266
5,616
4,899
43,753
239,737		 Total
funds
2020
£
79,915
170
-
3,802
6,938
8,571
7,080
-
106,476

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
189,629
11,340
3,444
204,413		 2020
£
102,518
7,744
2,000
112,262

The Church made seven staff redundant at the end of August 2020. The total redundancy payments made were £39,588.

The average number of persons employed by the Charity during the year was as follows:

Administration
Premises
Musicians
Retail Chaplain		 2021
No.
6
5
1
1
13		 2020
No.
7
8
1
1
17

Page 22

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

All staff were jointly employed by the Church and the trading subsidiary up until when the trading subsidiary closed. Salary costs are apportioned by use of resources.

All key management personnel (being the Trustees) act in a voluntary capacity and are not remunerated.

Included in the wages and salaries cost above is £35,069 (2020: £32,347), being the salary of the Retail Chaplain whose position is part funded by the Church of England and Methodist Circuit, with the balance being met from the Church resources.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

11. Exceptional items

The exceptional item showing in expenditure, relates to the provision of the write off of the loan with Carrs Lane Conference Centre which has now ceased to operate.

Page 23

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Tangible fixed assets

Cost or valuation
At 1 April 2020
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
Fixed asset investments
Cost or valuation
At 1 April 2020
Additions
Disposals
Revaluations
At 31 March 2021		 Investments
in
subsidiary
companies
£
1
-
-
-
1		 Property
improvemen
ts
£
1,618,631
1,618,631
931,802
104,898
1,036,700
581,931
686,829
Listed
investments
£
1,101,813
99,177
(301,885)
103,138
1,002,243		 Fixtures and
fittings
£
176,430
176,430
137,344
9,899
147,243
29,187
39,086
Cash
£
-
3,314
-
-
3,314		 Total
£
1,795,061
1,795,061
1,069,146
114,797
1,183,943
611,118
725,915
Total
£
1,101,814
102,491
(301,885)
103,138
1,005,558

13. Fixed asset investments

Page 24

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Company Class of Holding
number shares
Carrs Lane Conference Centre Limited 09048871 Ordinary 100%
The financial results of the subsidiary for the year were:
Income Expenditure Profit/(Loss) Net
£ £ / Surplus/ liabilities
(Deficit) for £
the year
£
Carrs Lane Conference Centre Limited 75 (7,260) (7,185) (8,216)

Carrs lane Conference Centre has ceased to trade. The figures above are taken from the final accounts for the year ended 30 September 2021.

14. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 2021
£
7,545
-
23,900
47,239
78,684		 2020
£
12,688
79,327
17,201
24,860
134,076

Page 25

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income		 2021
£
24,100
-
5,365
717
253
21,748
52,183		 2020
£
7,739
27,506
-
-
-
49,219
84,464

Page 26

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16.
Statement of funds
Statement of funds - current year
Balance at 1
April 2020
£
Income
£
Unrestricted
funds
Designated
funds
Youth Fund
2,787
-
Tangible fixed
assets
725,915
-
Fixed asset
investments
779,936
-
1,508,638
-
General funds
General Funds
95,152
165,784
Total
Unrestricted
funds
1,603,790
165,784
Restricted
funds
Funds held by
the Trustees for
Methodist
Church
Purposes
321,877
-
Total of funds
1,925,667
165,784		 Expenditure
£
-
(114,797)
-
(114,797)
(413,283)
(528,080)
-
(528,080)		 Transfers
in/out
£
-
-
12,525
12,525
227,295
239,820
(239,820)
-		 Gains/
(Losses)
£
-
-
115,511
115,511
-
115,511
12,214
127,725		 Balance at
31 March
2021
£
2,787
611,118
907,972
1,521,877
74,948
1,596,825
94,271
1,691,096

Page 27

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds (continued) Statement of funds - prior year

Unrestricted
funds
Designated
funds
Youth Fund
Tangible fixed
assets
Fixed asset
investments
General funds
General Funds
Total
Unrestricted
funds
Restricted
funds
Funds held by
the Trustees for
Methodist
Church
Purposes
Total of funds		 Balance at
1 April 2018
£
2,900
779,036
765,965
1,547,901
235,824
1,783,725
409,159
2,192,884		 Income
£
-
-
-
-
305,455
305,455
-
305,455		 Expenditure
£
(113)
(74,452)
-
(74,565)
(367,786)
(442,351)
-
(442,351)		 Transfers
in/out
£
-
21,331
122,009
143,340
(78,341)
64,999
(64,999)
-		 Gains/
(Losses)
£
-
-
(108,038)
(108,038)
-
(108,038)
(22,283)
(130,321)		 Balance at
31 March
2020
£
2,787
725,915
779,936
1,508,638
95,152
1,603,790
321,877
1,925,667

Page 28

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds (continued)

Youth fund

Funds were given to assist the Church with youth work.

Funds held by the Trustees for Methodist Church Purposes

These funds represent those funds contributed by Birmingham Methodist City Mission to the Local Ecumenical Partnership ("LEP") which are held by the Trustees for Methodist Church Purposes.

The funds can be used in furtherance of mission in the City Centre which falls within the charity's objects but if applied for improvement/development of the church building, would be restricted to the extent that on dissolution of the LEP the methodist church would hold a charge over the property for sums equivalent to the amount spending on the building.

Transfers between funds

The transfer from the restricted fund to unrestricted funds is following approval of the Trustees for Methodist Church purposes to release funds primarily for capital projects but also to support the general purposes of the Church.

The Trustees have reviewed the designated fund categorisations and taken the decision to separate tangible fixed assets and fixed asset investments into separately identifiable funds with the result that the unrestricted general fund more clearly demonstrates the readily available funds for general operational purposes.

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
611,118
Fixed asset investments
911,287
Current assets
126,603
Creditors due within one year
(52,183)
Total
1,596,825		 Restricted
funds
2021
£
-
94,271
-
-
94,271		 Total
funds
2021
£
611,118
1,005,558
126,603
(52,183)
1,691,096

Page 29

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
725,915
799,642
162,697
(84,464)
1,603,790		 Restricted
funds
2020
£
-
321,877
-
-
321,877		 Total
funds
2020
£
725,915
1,121,519
162,697
(84,464)
1,925,667

18. Pension commitments

The charity utilises a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £3,444 (2020: £2,000) Contributions totalling £717 (2020:£Nil) were payable to the fund at the balance sheet date and are included in creditors.

Page 30

THE CHURCH AT CARRS LANE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Related party transactions

Carrs Lane Lived Community

One trustee is a member of the Community and occupies a flat on the Church premises rent free, returning that benefit through contribution to the work and mission of the Church, which is a condition of residence. The trustee was a member of the Community prior to appointment as a trustee.

Carrs Lane Conference Centre

Carrs Lane Conference Centre Limited, the wholly owned subsidiary has now ceased to operate, it had previously operated the premises under licence. A licence fee of £Nil (2020: £33,299) was charged to the subsidiary. On occasion The Church at Carrs Lane ("the Church"), in accordance with its aims and objectives would agree to subsidise rooms hired by some charities and other organisations. The subsidies awarded were paid to the Conference Centre by the Church and amounted to £Nil (2020: £14,398). The Conference Centre previously donated its profits to the Church. A donation of £Nil (2020: £41,917) was received in the year. Staff were jointly employed by the Church and the Conference Centre up until when the trading subsidiary closed. Following the cessation of Carrs Lane Conference Centre a provsion has been made at the year end for the amounts that will no longer be recoverable, therefore at the year end £Nil (2020: £79,327) was due to the Church from the Conference Centre and £Nil (2020: £27,506) was due from the Church to the Conference Centre.

Joseph Scott's Chapel Charity

The Church at Carrs Lane is a specified beneficiary of the Joseph Scott's Chapel Charity and four members of the Church serve as trustees of this charity. During the year a grant of £15,415 (2020: £17,995) was confirmed. At the year end £3,415 (2020: £5,995) was outstanding.

Carrs Lane Counselling Centre

During the year the Church received rents of £5,773 (2020: £5,773) and £734 (2020:£Nil) for PPE and caretaking services from Carrs lane Counselling Centre, a charity of which one of the trustees is also a trustee.

20. Local ecumenical partnership

When Carrs Lane Church Centre and Birmingham Methodist City Mission came together as a Local Ecumenical Partnership and transfer the assets to The Church at Carrs Lane, their respective contributions were deemed to form part of "the Common Fund" to be used in furtherance of the charitable purposes of the charity. In the event that the partnership were to cease then the funds would be split between the Methodist and United Reformed Church based on the proportion contribution to the Common Fund.

Where Methodist funds in excess of £100,000 are used to improve the building (which is a United Reformed Church property) then this represents a capital contribution and would no longer form part of the Common Fund contribution.

On 31 October 2017 representatives of the two denominations entered into a Deed to vary the Sharing Agreement between them in respect of the capital contributions. Under this Deed, as at 31 March 2021, capital contributions totalling £632,159 have been made from the Methodist funds and accordingly the Methodist Share of the open market value of the property is 18.15%.

Page 31

APPENDIX I

THE CHURCH AT CARRS LANE

CAPITAL CONTRIBUTIONS AND WITHDRAWALS TO THE LOCAL ECUMENICAL PARTNERSHIP

FOR THE YEAR ENDED 31 MARCH 2021

United Reformed Church United Reformed Church Methodist
% £ % £
Year ended 2015
Common fund contribution 1,361,952 1,134,657
Carried forward 55 1,361,952 45 1,134,657
Year ended 2016
Common fund contribution 70,112
Carried forward 53 1,361,952 47 1,204,769
Year ended 2017
Common fund contribution (121,215)
Carried forward 56 1,361,952 44 1,083,554
Year ended 2018
Common fund contribution (340,055)
Carried forward 65 1,361,952 35 743,499
Year ended 2019
Common fund contribution (149,557)
Carried forward 70 1,361,952 30 593,942
Year ended 2020
Common fund contribution (21,331)
Carried forward 70 1,361,952 30 572,611
Year ended 2021
Common fund contribution 0
Carriedforward 70 1,361,952 30 572,611