2022-12-31-accounts - Mount Chapel

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Mount Chapel

Accounts and Independent Examiners Report

Year Ended 31[st] December 2022

Accountant and Independent Examiner

David R S Welch FCA, DChA Chartered Accountant

3 Alvington Grove

Hazel Grove, Stockport, Cheshire SK7 5 LS

Contents	Page
Company, Legal and Charity Information	3
Trustees Report	4-7
Independent Examiners report	8
Income and Expenditure Account	9
Balance Sheet	10
Notes to Balance Sheet & Financial Statements	11-14

Company, Legal & Charity Information

Mount Chapel Registered Address:32 Eccles Old Road, Salford, United Kingdom, M6 7AF Working Name:Mount Chapel Christian Fellowship Charity Registered:3[rd] October 2013 Charity Number:1154080 Company Formed:25[th] July 2013 Company Number:08624944 Church Website:- http://www.mountchapel.com Church Email:mountchapelsalford@gmail.com Reporting Accountant & Independent Examiner:David R S Welch FCA, DChA, Chartered Accountant, Hazel Grove, Stockport, Cheshire. SK7 5LS EMAIL:- david@welchfca.co.uk Bankers:Barclays Bank plc Treasurer:John A Platt Trustees of Charity:John A Platt, Raymond J Joseph, Bernadette M Cousins, Leslie L Griffiths

TRUSTEES REPORT

Legal

Mount Chapel was founded in 1966. It was registered as a Charity with the Charity Commission in England & Wales on 3[rd] October 2013 under Charity Number 1154080 in order to comply with changes in the relevant statutory requirements.
Mount Chapel Limited was formed as a legal company on 25[th] July 2013 at Companies House, with a company number of 08624944.
The limited company began operating as a ‘Not for Profit’ company, limited by guarantee on 1[st] January 2014.
Mount Chapel’s Accounts for the year ended 31[st] December 2022, with 2021 comparatives, are attached.
Ownership of the Mount Chapel Church and buildings, fixtures and equipment, was transferred from Mount Chapel Trust to Mount Chapel Limited during 2015.
The working name of Mount Chapel is Mount Chapel Christian Fellowship
32 Eccles Old Road, Salford, United Kingdom, M6 7AF

Trustees

The Trustees serving the church during the year were:- Raymond J Joseph, John A Platt, Bernadette M Cousins, and Leslie L Griffiths.

Church and Charity Objectives

The charity's objects are, for the public benefit, to advance the Christian faith in accordance with the statement of beliefs, in Salford, Manchester and in such other parts of the United Kingdom and the world as the trustees may from time to time think fit.
Mount Chapel Purpose and Vision statements:Our Purpose statement, to “Enjoy Jesus in Word, Spirit and Mission ” answers the question “Why are we here?”
Our Vision statement, to “Build Up Others in The Life God Gives” answers the question “What do we do next?”

TRUSTEES REPORT (continued)

Public Benefit:

The church seeks to proclaim and teach the Christian faith at home and overseas and to engage in relief and support work in the community and further afield. It seeks to assist others to grow and mature in their Christian Faith by providing a variety of services, activities and ministries which are open to church members and members of the public and aims to reach peoples of all ages through the following:-

Public Services: Held on Sundays mornings to preach, teach and reach the members and others who attend and be available to interested members of the public.
Kids’ Church: On Sunday mornings, concurrent with the morning service for ages 3- 10 years. Provides teaching and a fun time for children of church members and from the local community.
“Mounteens” – Teenagers’ Work: On Sunday mornings, concurrent with the morning service for ages 11-17 years. Provides teaching and a fun time for young people from families of church members and from the local community. The young people also engage in a number of other activities at other times – social trips, Christian events and social action projects.
French-Speaking Service – A weekly Sunday afternoon service in the French language. There is a considerable demand for this in the area and attendance is regularly in excess of 30 adults and children and interest is growing.
Mission Focus Meetings : Mount Chapel supports full time missionaries in France, India, Zimbabwe and the UK while some of our members undertake short term mission work from time to time. Mission Focus is a platform for our community to learn about what God is doing in the world.
Prayer meetings: Prayer is important to the church, and the church is made available for people to come and pray for individual, church, community, national and global needs.
Prayer Meetings: As arranged
Prayer & Worship Evenings: Monthly
Deborah Arise Prayer: A weekly ladies’ prayer group, praying for young people and those who have wandered from their faith.
Prayer Chain: Mount Chapel operates a prayer chain through which items for prayer are communicated to the church.
Alpha & Christianity Explored Courses: Provided as required for those who wish to enquire about the Christian faith.

TRUSTEES REPORT (continued)

Annual Church Weekend Away: For teaching and development of friendship and fellowship.
Food Bank: Collection of food items is promoted within the church and regular donations are made to the local Salford Central Food Bank.
New Frontiers, Christ Central – Mount Chapel is a member of New Frontiers, Christ Central, an informal network of churches with similar theology and objectives. Several visiting speakers from within that network helped with the Sunday morning service ministry during the year.
Summary of Main Highlights in 2022:

Church Services & Events

Teaching Programmes included a series entitled “Gold” based on the gospel of John chapters 13 to 17 and a series on Advent through December on the run up to Christmas.
Other Services and Events included Good Friday, Christmas Carol Service, Christmas Day, Harvest and Kids’ Church Prize-giving.
The Annual Church Meeting was held on-line on 15[th] May 2022
Baptisms, Marriages & Funerals – One baptismal service took place when five people were baptised. No marriages took place at Mount Chapel in 2022. One funeral was held of a longstanding member on 24[th] June 2022.
Salford Church Network – Mount Chapel engages with other local churches of various denominations through the Salford Church Network, including regular Leaders’ Lunches and networking meetings and the “Salford Week of Prayer” held from 23[rd] to 30[th] June 2022.

Financial

In 2022 there was a Deficit of £ 7,034 (2021: Deficit of £ 8,620 )
Capital Additions in 2022 amounted to £ 0 ( 2021:- £2,283). These are to be written off over 3 years at £761 p.a.
Depreciation charged for building and improvements in 2022 and 2021 amounted to £11,916 each year, and this was the main reason for the deficit in both years.
A 10 year loan of £45,000 was acquired from Stewardship Services (UKET) Ltd. to help fund the modernisation and improvement of the Chapel and its facilities. Repayment of this loan began in January 2019. This had been reduced to £29,102 at year end 31[st] December 2022 (£33,336 @ 31.12.2021).

TRUSTEES REPORT (continued)

Health & Safety

The 5-Star Food Hygiene Rating was retained. All personnel supervising food preparation in the kitchen area are required to hold a current Level 2 Food Safety Certificate.
The Fire Risk Assessment was reviewed according to the annual schedule.
Ongoing review of Risk Assessments for all activities continued periodically as per schedule.
Basic Life Support training (including operation of the portable defibrillator) and Fire Marshal training is required for all authorised key-holders and is an ongoing programme including refresher training.

Safeguarding

The Safeguarding Policy was updated during 2022 incorporating the latest changes in legislation and including the necessary safeguards for on-line meetings with particular reference to children and adults at risk.
Training on the Policy and updated regulations has been carried out for all DBS checked personnel – both employees and volunteers – and is an ongoing programme of refresher training.

Reporting Accountant & Independent Examiner

The church appointed and has been served by David R S Welch FCA, DChA, as their Reporting Accountant and Independent Examiner since the incorporation of Mount Chapel Limited, from its previous Trust status in July 2013.

John A Platt Trustee and Treasurer

Date: 8[th] August 2023

Independent Examiners Certificate & Report To the Trustees and Members of Mount Chapel

I report on the accounts of the Church for the Year Ended to 31st December 2022, as shown on pages 9 – 14 attached.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to:-

examine the accounts under section145 of the Charities Act
to follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and
to state whether particular matters have come to my attention

BASIS OF INDEPENDENT EXAMINER'S REPORT

My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is give as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

INDEPENDENT EXAMINER'S STATEMENT

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in any material respect the requirements
to keep accounting records in accordance with section 130 of the Charities Act and
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act. have not been met, or
(2) to which, in my opinion, attention should be drawn, in order to enable a proper understanding of the accounts to be reached.

DAVID R S WELCH FCA, DChA. CHARTERED ACCOUNTANT

3 Alvington Grove, Hazel Grove Stockport, Cheshire. SK7 5LS

Date: 8[th] August 2023

Income & Expenditure Account Year Ended 31[st] December 2022

RESOURCES RECEIVED	Unrestricted Restricted Total Total Funds Funds Funds Funds
Notes 1 & 2 FROM MAIN CHARITABLE ACTIVITIES Gifts and Offerings Gift Aid Income Tax Refunds-HMRC Charities Use of Chapel Bank Interest In Memoria & Other Receipts Project Fund Other Gifts & Donations TOTAL INCOME FOR YEAR	2022 2022 2022 2021 £ £ £ £ 51,046 0 51,046 46,175 13,412 0 13,412 12,134 575 0 575 520 6 0 6 0 684 0 684 0 0 2,627 2,627 930 0 2,140 2,140 2,430
	65,723 £ 4,767 £70,490 £62,189

RESOURCES EXPENDED	Unrestricted Restricted Total Total Funds Funds Funds Funds
Notes 3, 4, 5 & 6 F0R MAIN CHARITABLE ACTIVITIES Ministry & Fellowship Costs (incl. Staff) Outreach and Missionary Support Costs Mount Chapel Maintenance & Utility Costs Building Maintenance Fund Loan Interest Paid CHARITABLE ACTIVITY COSTS GOVERNANCE COSTS Independent Examination TOTAL COSTS FOR YEAR SURPLUS / (DEFICIT)FOR YEAR Trustees Funds b/forward Transfer of funds Trustees Funds c/forward	2022 2022 2022 2022 £ £ £ £ 33,863 0 33,863 31,555 10,140 4,687 14,827 11,952 23,148 0 23,909 22,589 3,652 0 2,891 2,601 1,309 0 1,309 1,417 72,112 4,687 76,799 70,114 725 0 725 695
	£72,837 £ 4,687 £77,524 £70,809
	£ (7,114) £ 80 £ (7,034) £(8,620)
	£465,331 £ 857 £466,188 £ 474,808 0 0 0 0 £458,217 £ 937 £459,154 £466,188

Balance Sheet

As at 31[st] December 2022

Balance Sheet As at 31st December 2022
	Note	2022			2021
		£	£		£	£
Fixed Assets	7 & 8	474,814			£	486,730
Current Assets
Stocks	9	3,073			3,172
Gift Aid Debtor		3,390			3,209
Other Debtors & Loans		0			0
Prepaid Expenses		69			15
Cash at Bank		11,620			10,172
Cash in Hand		0			0
Total Current Assets		£ 18,152			£ 16,568
Current Liabilities
Creditors & Accrued Utility Charges		1,211			577
HMRC re PAYE & NIC		1,565			1,474
EDF Electric		1,209			1,028
Independent Examiner		725			695
Stewardship Loan due < 1 Year	10	4,192			4,214
Total Current Liabilities		£ 8,902			£ 7,988
NET CURRENT ASSETS			£ 9,250			£ 8,580
TOTAL NET ASSETS BEFORE		£ 484,064				£ 495,310
CREDITORS DUE > 1 YEAR
Stewardship Loan due > 1 Year	10		(24,910)			(29,122)
NET ASSETS		£	459,154			£ 466,188
Represented by:-				£			£
Unrestricted Funds	11	£ 458,217				£ 465,331
Restricted Funds			937				857
TRUSTEE FUNDS		£ 459,154				£ 466,188
(DE)/INCREASE IN TRUSTEE FUNDS FOR YEAR		£	(7,034)			£ (8,620)

John A Platt Director & Trustee Date: June 2023

Notes to Financial Statements

THE BASIS OF ACCOUNTING POLICIES AND DEFINITIONS

a) THE ACCOUNTS have been prepared under the historical cost convention in accordance with applicable accounting standards and the Charities Act 2011 and Statement of Recommended Practice (SORP) 2005.
b) GENERAL FUNDS represent unrestricted funds that are not subject to any restriction regarding their use and are available for application towards their use for purposes of a general nature.
c) RESTRICTED FUNDS represent funds restricted by the donor for a particular purpose.
d) DESIGNATED FUNDS represent funds that have been allocated out of Unrestricted funds by the Trustees of Mount Chapel, for specific events or liabilities Mount Chapel is
committed to.

Any remaining balance is returned to unrestricted funds when events have been held.

e) INCOMING RESOURCES are included in the Statement of Financial Activities (SoFA) when:-
Mount Chapel becomes entitled to the resources
The trustees are virtually certain they will receive the resources; and
The monetary value can be measured with sufficient reliability.
f) GRANTS & DONATIONS are included in the SoFA when Mount Chapel has unconditional entitlement to the resources.
g) INVESTMENT INCOME is included in the SoFA when receivable.
h) RESOURCES EXPENDED are recognised when costs have been incurred, or for designated or special gifts, in the same accounting period as the related gift is received.
i) TANGIBLE FIXED ASSETS are capitalised at cost when incurred. For assets bought in previous years, and included at valuation the resultant increase in value in assets from previous years will be identified as income, in Voluntary Incoming Resources.
j) DEPRECIATION OF TANGIBLE FIXED ASSETS is included in resources expended, to write off the assets over their useful life. See notes 3 and 6 for further details.
k) LIABILITY RECOGNITION – Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Liabilities due in more than one year are shown separately, so Net Current Assets reflects only those liabilities payable within the next financial year.
l) GOVERNANCE COSTS – The preparation and examination Mount Chapel’s annual statutory accounts. It can also include AGM & trustee meeting expenses, and constitutional legal advice given to trustees.

2022 2021 £ £ 51,046 46,175 492 0 575 520 13,418 12,134 192 93 £65,723 £58.922	2022 2021 £ £ 51,046 46,175 492 0 575 520 13,418 12,134 192 93 £65,723 £58.922	2022 2021 £ £ 51,046 46,175 492 0 575 520 13,418 12,134 192 93 £65,723 £58.922
0 0 2,140 2,337 2,627 930 £4,767 £3,267
11,916 11,916 7,521 6,532 1,743 1,737 1,968 2,404 £23,148 £ 22,589
£ 725 £ 695
1,811 693 152 700 291 25 379 164 1,640 1,055 28,984 27,924 168 585 438 409 £33,863 £31,555
8,540 8,348 1,600 1,194 2,080 1,480 2,607 930 £14,827 £11,952
	£3,652 £ 0 £4,234	£2,601 £2,283 £4,054

8. Fixed Assets

8. Fixed Assets
	Church &	Fixtures, Roof,	Total
	Buildings	& Equipment	Fixed Assets
	£	£	£
COST/VALUATION @ 01.01.2022	£ 350,000	£ 189,138	£ 539,138
Additions – Building Refurbishment	0	0	0
Additions – Zoom, Computer/AV	0	0	0
Disposals in Year	0	0	0
COST/VALUATION @ 31.12.2022	£ 350,000	£ 189,138	£ 539,138
DEPRECIATION @ 01.01.2022	£ 0	£ 52,408	£ 52,408
Charge - year (Building Improvements)	2%0	1,882	1,882
Charge - year (Fixtures & Equipment) 10%0		9,273	9,273
Charge - year (Computer/AVEquip.zoom) 33%0		761	761
Eliminated on Disposals	0	0	0
DEPRECIATION @ 31.12.2022	£ 0	£ 64,324	£ 64,324
NET BOOK VALUES @ 31.12.2022	£ 350,000	£ 124,814	£ 474,814
NET BOOK VALUES @ 31.12.2021	£ 350,000	£ 136,730	£ 486,730

Notes on Fixed Assets:-

The Trustees commissioned Stephen Peter Welch FRICS, of Byrom Clark Roberts, Surveyors & Valuers, to provide them with an up to date valuation of the church building and premises, to include in the 2015 accounts for MOUNT CHAPEL LIMITED, company number 08624944 . The valuation adopted was the Market Value valuation of £350,000. A second valuation, the Asset Value of £490,000, was also provided by Byrom Clark Roberts. This was based on today’s cost of replacing the asset, less an allowance for depreciation on the basis that the present building is 50 years old, having been built in 1966. However, the Directors and Trustees thought that the Market Value was more representative of what would be realised on the open market, should the building and site at any time be sold.
The Mount Chapel Church Building is not being written off, but kept at valuation. However, the church improvements are being depreciated at 2% on cost {£94,125}; church equipment & fixtures {£92,730} continue to be written off over 10 years (10% on cost/valuation). These amounts make up the Fixtures, Building Improvements, Roof and Equipment total of £186,855.
Biffa Grant Monies were claimed and received in the year ended 31.12.2018. totalling £73,000 towards capital expenditure incurred. These came from a Landfill Communities Fund, and any remaining monies left, if unspent, would be required to be transferred to another such scheme, and not a charity with a similar scheme, if the church were to close in the future.
The Trustees can confirm that the grant monies have been spent, and there are no Grant Monies left within Trustee Funds, so no future contingent liability exists .

	2022		2021
9. Value, at cost of Stock at year end:
General Ministry Items		486		524
Maintenance, Lighting & Cleaning Materials	2,055		2,105
Catering Items		129		130
Printing, Stationery, Publicity Materials etc.		403		413
Bookstall Stock				0
Total Stocks	£	3,073	£3,172

10 . Creditors due in more than one year

The Loan from Stewardship of £45,000 was received just before the 2018 year end. By the 2021 year end £ 33,336 was still owing on the loan, to be paid over 7 years. In 2022 capital repayments amounted to £4,234, and interest charged on the loan was £ 1,309 . The balance owing at 31[st] December 2022 was £ 29,102 (2021:- £ 33,336).
It is to be paid off over 10 years, the first monthly repayment of £456 per month, including 4% interest, was made in January 2019. There is provision for the loan to be paid off earlier without financial penalty, if this is possible. In 2022 the monthly repayment was increased to £488 which reflects the higher interest being charged, and still enable the loan to be paid off by December 2028.
The accounts show the capital repayable within one year (2023) as £ 4,192.
The loan repayable in over 1 year is now…………….…£24,910 and will be repaid as:1} £ 19,289 in 2-5 years {2024-2027}, & 2} £ 5,621 {2028} In over 5 years
Total Loan repayable, excluding interest payable, is £45,000.
T he above split assumes interest is calculated on the ‘Rule of 78’ basis, where interest in the early years is higher than the last few years.

11 . Trustee Funds

		2022	2021
		£	£
Unrestricted Funds
General Funds		35,217	42,331
Designated Funds		0	0
Revaluation Reserve
Value of Freehold Land	{Note 8}	350,000	350,000
Biffa Community Fund
Contribution to Refurbishment
& New Equipment/Resources	{Note 8}	73,000	73,000
Total Unrestricted Funds		£ 458,217	£ 465,331
Total Restricted Funds		£ 937	£857
Total Funds		£459,154	£466,188