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2020-08-31-accounts

Warlingham Methodist Church

Warlingham Methodist Church Annual Report & Accounts 2019-20

(Charity Number:1156399)

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Warlingham Methodist Church

Contents

Page
Trustees Annual Report 3-7
List of Church Council members (Trustees) 4
Independent examiner’s report 8
Accounts 9-14
Statement of Financial Activities 9
Balance Sheet 10
Notes to the financial statements 11-14

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Warlingham Methodist Church

WARLINGHAM METHODIST CHURCH ANNUAL REPORT & ACCOUNTS 2019-20

Trustees’ Annual Report

Introduction

The Church Council of Warlingham Methodist Church (the Trustees) have pleasure in reporting on how the church has used its resources to deliver the mission of the church, to the glory of God. This year has been exceptional as the world and the country has come to terms with the need to restrict how we live and meet to combat the spread of the deadly Covid-19 virus. We temporarily ceased to meet face-to-face for worship, youth work and in homes for bible study from the end of March 2020, following the Government’s decision to enter a period of lockdown. During this time, we developed digital church to meet online. Sunday services were held using our newly acquired Zoom account and a number of new on-line bible studies were established. Our youth and families team reached out digitally. From 2nd August 2020, following a full risk assessment and after implementing measures recommended, we began to meet for Sunday services again with numbers limited to around 30 and the service simultaneously shared on Zoom.

Structure & Governance

Warlingham Methodist Church is the local Methodist church in Warlingham and is part of the wider Methodist Church. Methodist churches are linked together through Circuits and Districts. These form the Connexion. Warlingham Methodist Church is part of the Purley Circuit and the London District.

We are a local charity, registered with the Charity Commission (Charity Number 1156399).

The Church means both the people and the buildings. It is the whole body of members who worship together.

The Church Council with the minister has responsibility for the co-ordination of that ministry, and the members of the Church Council are managing trustees of the church buildings. Some Church members belong to the Church Council, either because they have been elected by the local church members, or because they hold specified offices within the local church.

For people who wish to become members of the Methodist Church, there is a period of training and, once the local church council is satisfied with the person's sincere acceptance of the basis of membership of the Church, a service of confirmation and reception into membership is held. If they have not previously been baptised, the service will include baptism.

The Deed of Union (the key foundation document of the Methodist Church since it became united in 1932) states that: "All those who confess Jesus Christ as Lord and Saviour and accept the obligation to serve him in the life of the Church and the world are welcome as members of the Methodist Church".

Aim & Objectives:

: The Church exists to exercise the whole ministry of Christ. Worship, fellowship, pastoral care, mission and service are essential features of that ministry.

Our aim at Warlingham Methodist Church is: “As committed followers of Jesus we all desire to be used by The Holy Spirit to make the Love and Power of God real to people of the neighbourhood”.

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Warlingham Methodist Church

The purposes of Warlingham Methodist Church and the wider Methodist Church of which it is a part are, and shall be deemed to have been since the date of union, the advancement of: (a) the Christian Faith in accordance with the doctrinal standards and discipline of the Methodist church; (b) any charitable purpose for the time being of any connexional, district, circuit, local or any other organisation of the Methodist Church; (c) any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church; and (d) any purpose for the time being of any charity being a charity subsidiary or ancillary to the Methodist Church.

Trustees’ Annual Report on Finance and Governance

Church Council

The Church Council met four times in 2019-20. Members of Church Council during the year were:

Chairperson Rev Faith Nyota Secretary Marilyn Compton Stewards Christina Dench, Dee Cobley, Wendy Baston Jill Gradon (joint senior steward), Ann Skinner, Marilyn Compton (joint senior steward) Leadership team Rev Faith Nyota, Peter Gammie, Curtis Juman, Nigel King, Jill Gradon Church Treasurer Heather Juman Acted as the principal officer overseeing the day to day financial management and accounting for the church during the year. Rep from Property Committee Peter Gammie Reps from Finance Committee Curtis Juman, Jim Witham Rep from Pastoral Committee Ann Skinner Sec of Pastoral Committee Margaret Witham Reps from Church meeting Peace Furusa, Nigel King, Bob Ryland, Sallie Smith, Eddie Spence, Dee Cobley, John Adam, Liz Gammie, Allison King, Andrew Moore, Rosemary Moore Circuit Rep* Marjorie Dear

*Members of more than one group

The Church Council operates a committee structure, with committees covering Property, Finance and Pastoral matters. Church Council members nominate members for these committees. In addition, the stewards meet with the minister regularly and there is also a small leadership group drawn from the minister, stewards and worship team, supporting the Church Council in setting the vision for the church.

A range of guidance is produced by Methodist Connexion to support the effective running of the church and the role of Trustees is given to the Church Trustees at various meetings.

Public Benefit

The Trustees (Church Council) confirm that they have paid due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the church.

Administrative information

The Address of the Church Office is Warlingham Methodist Church, Limpsfield Road Warlingham, Surrey CR6 9LE. The Church’s Principal Bankers are HSBC, Croydon Branch, 9 Wellesley Road, Croydon Road, Surrey CR9 2AA. The Independent Examiner is Mr R.J.E. Bamford,9 Peter Avenue, Oxted, Surrey RH8 9LG.

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Warlingham Methodist Church

Basis of preparation and legal framework

This annual report and accounts for the year ended 31 August 2020 have been prepared in accordance with the Charities Act 2011 and the Charities: Statement of Recommended Practice 2015 as applicable to the Financial Reporting Standard (FRS) 102.

Review of the Year

Financial Commentary

The focus of the church in financial terms continues to be mission and care. We continue to invest in youth and family outreach work. The Church had an overall surplus of £19,218 (2018-19 surplus of £44,523). Unrestricted funds recorded a surplus of £5,667 (2018-19 surplus of £43,406). Restricted funds recorded a surplus of £13,551 (2018-19 surplus of £1,117). From the end of March 2020, the church buildings were closed in line with government guidance until a full risk assessment and mitigating action undertaken. As a result, income from rentals fell and also from collections. Income from members held up as most continued to give and some increased giving to meet shortfalls. Costs also reduced for planned events and general repairs.

Income

We received £143,953 (2018-19: £212,147) of income. Unrestricted income increased to £106,271 (201819: increased to £96,840). Rents decreased to £18,380 (2018-19 decreased to £22,995) as a result of our need to close our buildings from March 2020 until August 2020.

Restricted income decreased to £37,680 (2018-19: £115,307) reflecting last year’s one-off gifts for the purchase of an organ (£54,170) and building projects. There were also grants to support youth and families work from the London District, of £15,500 (2018-19: £16,500) and from the Purley Circuit of £5,000 (to be used over three years).

Expenditure

We spent £107,604 (2018-19: £167,624). We used our resources for our Circuit Ministry team, the Circuit Assessment, £33,829 (2018-19: £37,375); Youth and family work, running free clubs and events for the young people in the local area £48,788 (2018-19: £52,882). We did not furlough our workers during lockdown. Insurance; gas; electricity etc. cost £8,214 (2018-19: £8,580). Repairs and maintenance of the buildings was £12,036 (2018-19: £40,287). The prior year included spend on replacing the church kitchen. A depreciation charge of £10,834 has been included which relates to the new organ (2018-19: £10,834).

Fixed Assets

The Church Council are managing trustees and the building ownership is vested in The Trustees for Methodist Purposes in Manchester. The Church Council are required to insure, maintain and improve the buildings and have full access to them and enjoy the income from rentals. As most of the risks and rewards of ownership are with the Church Council, the buildings have been included in these financial statements at deemed cost based on an insurance assessor valuation extant in 2015.

Risk Management

During the year, a risk management review work was undertaken by the Property Committee in terms of Health & Safety and fire risks. A detailed risk assessment was undertaken following government guidance before the church premises were reopened. All of the necessary adjustments were made to ensure the premises were Covid-secure.

The Church Council leadership team continued to oversee the risks relating to not successfully delivering the Church’s objectives. It increased its meetings to monthly to consider issues and agree actions to mitigate the effects of the impact on achieving objectives caused by the restrictions as a result of Covid-19. It reports back to Church Council, with recommendations. Church Council took leadership of ensuring data protection and safeguarding risks were addressed.

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Warlingham Methodist Church

Safeguarding

The church believes that every person has a value and dignity which comes directly from the creation of male and female in God’s own image and likeness. The Church is committed to ensuring the implementation of Connexional Safeguarding Policy; government legislation, guidance and safe practice in the circuit and in the churches. The Church has provided support, advice and training for lay and ordained people to help ensure people are clear and confident about their roles and responsibilities in safeguarding and promoting the welfare of children and adults who may be vulnerable.

Worship, fellowship, pastoral care, mission and service

During the first part of the year we successfully ran Thursday club (34 members) for those aged 14 plus and Tuesday club (38 members and junior leaders) for those aged 11-13. We were encouraged to see more from these groups attending worship on each Sunday morning, up until March 2020. From March until October 2020, online meetings were held.

The church has employed a Families’ Worker for four years. This role has focused on sharing the love of Jesus and serving young families in the local area. Until March 2020 we ran MC Kids on Sunday mornings, welcoming up to 10 young families each Sunday. As well as the Families Workers, MC Kids was supported by church members volunteering to provide craft activities, worship and Christian teaching.

Again, until March we continued to offer quarterly ‘Ignite’ contemporary services on Saturdays to complement Sunday mornings, with food provided by the church. Some 50 people on average attended with most under 25 years old. We also offered a monthly prayer breakfast (this moved to on-line from March) and bible studies (also moved online). We also introduced Take time bible study and meditation each Wednesday during the period.

In terms of developing our Sunday worship, we have undertaken many local arrangements, involving a greater number of our congregation in planning and leading Sunday worship. These local arrangements continued once the church reopened in August.

We continued to run free-to-all fellowship focused community events, particularly the Friday Coffee morning and Film Club. These events offered the opportunity to all in our local community to join us to simply share time and company together, building a loving community. From March these activities ceased.

Many Church members, and those who worship with us, gave their time and effort to run, host and offer support to these activities, making the love of Jesus visible to the local community.

We have continued to share the Good News of the Gospel with those locally and through the Tuesday and Thursday clubs. From October 2020 we have gradually started to meet in COVID-secure environments ensuring we follow government rules in terms of number, distancing, protective equipment and cleaning.

Volunteers

During the year, just over 60 individuals supported the church in a voluntary capacity for events including: Sunday worship, Ignite worship, junior church, Messy Church, Prayer breakfast, Easter breakfast, Tuesday Club, Thursday Club, Coffee morning, Film group, summer clubs, Pastoral visiting, bible study groups, church workdays and other church activities. Many of our volunteers supported several different activities.

Reserves

Our total net unrestricted Reserves, excluding reserves relating to the church building, stood at £86,413 (2018-19 £69,842). Our Reserves policy is to hold enough unrestricted reserves to meet the cost of major repairs and to smooth income fluctuations. Our aim is to hold reserves not exceeding seven months of

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Warlingham Methodist Church

expenditure. We currently plan to deploy our reserves over the coming years to fund youth and family work and contribute towards the building upkeep.

Our cash-based Reserves are held in interest bearing accounts. Amounts not required to meet immediate expenditure are invested with the Central Finance Board of the Methodist Church, who aim to apply a Christian based ethical investment regime. Funds held for immediate use are held in our HSBC current accounts.

Plans for the future

As the country adapts to a new normal, we have continued to develop our approach, and in the year ahead we will be focusing on developing our digital ministry. We will invest in our AV equipment. We will continue to invest to make our buildings safe, including protective equipment to allow our musicians to safely perform together during worship. We aim to continue to offer youth work and family work to the local community around Warlingham. We will seek to continue to fund this work from giving by church members but will also look to other external funding over the year.

We continue to pray and thank God for all the blessings we have as His church and rely on His grace.

Church Council Members’ (Trustees’) responsibilities in relation to the financial statements

The charity trustees (church council members) are responsible for preparing a trustees’ annual report and 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 and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period.

In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that 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, the applicable Charities (Accounts and Reports) Regulations. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent Examination of the Accounts

The independent examination of the accounts was kindly undertaken by John Bamford (FCA).

CM Juman

Approved by the Church Council and signed on their behalf Curtis Juman Secretary to the Finance Committee

27[th] October 2020

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Warlingham Methodist Church

Independent Examiner’s Report

Report to the members (trustees) of Warlingham Methodist Church on accounts for the year ended 31 August 2020 (Charity no: 1156399) set out on pages 9 to 14.

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:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. 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 given 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:

  2. to keep accounting records in accordance with section 130 of the Charities Act; and

  3. to prepare accounts which accord with the accounting records and comply with the

  4. accounting requirements of the Charities Act have not been met; or

  5. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Signed: R.J.E. Bamford Date: 17[th] December 2020

Name: Mr. R.J.E. Bamford

Relevant professional qualification: FCA

Address: 9 Peter Avenue, Oxted, Surrey RH8 9LG.

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Warlingham Methodist Church

Statement of Financial Activities (SOFA) For the year ended 31 August 2020

Note
Income
Offerings
2
Donations
3
Gift Aid
Interest
Rental Income
Other Income
Total Income
Expenditure
Circuit assessment
Grants
Property upkeep
Utilities & insurance
Youth & Family work
4
Caretaker
4
Mission work
Depreciation
Other expenditure
Total Charitable
Expenditure
Net Income/(Expenditure)
before transfers
Transfers
12
Other gains/losses
Net movement in Funds
Total Funds brought
forward
Total Funds carried
forward
Unrestricted
Funds
£
Restricted
Funds
£
Total
2019-20
£
Unrestricted
Funds
£
Restricted
Funds
£
69,166
10,685
79,851
54,950
91,484
1,336
24,500
25,836
1,211
17,870
14,207
1,395
15,602
13,411
4,328
595
-
595
495
-
18,380
-
18,380
22,995
-
2,587
1,100
3,687
3,778
1,625
106,271
37,680
143,951
96,840
115,307
Total
2018-19
£
146,434
19,081
17,739
495
22,995
5,403
212,147
33,829
-
33,829
37,375
-
100
-
100
471
147
7,551
4,485
12,036
8,092
32,195
8,214
-
8,214
8,580
-
30,904
17,884
48,788
31,222
21,659
5,690
-
5,690
7,553
-
1,443
1,760
3,203
1,302
6,019
10,834
-
10,834
10,834
-
2,039
-
2,039
2,175
-
100,604
24,129
124,733
107,604
60,020
37,375
618
40,287
8,580
52,881
7,553
7,321
10,834
2,175
167,624
5,667
13,551
19,218
(10,764)
55,287
-
-
-
54,170
(54,170)
5,667
13,551
19,218
43,406
1,117
44,523
-
44,523
1,787,361
31,432
1,818,793
1,743,955
30,315
1,793,028
44,983
1,838,011
1,787,361
31,432
1,774,270
1,818,793

All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities. There were no fundraising costs.

There were no endowment funds nor gains/losses on investments or asset revaluations.

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Warlingham Methodist Church

Balance Sheet as at 31 August 2020

Notes
to the
Accounts
Fixed Assets
Church building and other property
7
Total fixed asset
Current Assets
Debtors & prepayments
10
Central Finance Board Deposits
9
Cash at Bank and in hand
9
Total current assets
Current Liabilities
Creditors (due within 1 year)
11
Total current liabilities

Net current assets
Total assets less current liabilities
Net assets
Funds of the Church
Unrestricted General Fund
12
Restricted Funds
12
Total Funds

Unrestricted
Funds
£
Restricted
Funds
£
Total
2019-20
£
1,706,614
-
1,706,614
-
20,992
1,395
22,387
34,365
42,927
77,292
31,056
877
31,933
86,413
45,199
131,612
-
216
216
-
216
216
86,413
44,983
131,396
1,793,028
44,983
1,838,011
1,793,028
44,983
1,838,011
1,793,028
-
1,793,028
-
44,983
44,983
1,793,028
44,983
1,838,011
Total
2018-19
£
1,717,449
1,717,449
7,870
72,983
20,557
101,410
66
66
101,342
1,818,793
1,818,793
1,787,361
31,432
1,818,793

There were no endowment funds.

Heather Juman

Mrs. H. Juman Treasurer

17th December 2020

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Warlingham Methodist Church

Notes to the Accounts

1. Accounting framework and accounting policies

i Accounting framework The financial statements have been prepared under the Charities Act 2011 in accordance with the 2014 version of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

ii Basis

These accounts have been prepared on the basis of historical cost on the accruals basis.

iii Income recognition

Income is brought into account when it is more likely than not that the economic benefit of the income will accrue. No attempt is made to measure the value of services donated by volunteers. In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised.

iv Expenditure This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Church to pay out resources.

v VAT

Since the Church is not VAT registered, all input VAT is charged with the expenses to which it refers.

vi Tangible fixed assets These are capitalised if they can be used for more than one year, and individually cost at least £1,000. No depreciation is provided on the building because the trustees consider the current residual fair value of the building to be not less than its deemed cost to date. The property has been reviewed for impairment. Plant and Machinery are depreciated over five years and furniture and fittings over ten years.

vii Receivables and Payables; Bank and Cash Debtors are stated at the amounts owed or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the Church. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values.

viii. Funds

Restricted funds relate to incoming resources which are to be used in accordance with the donor’s wishes. Unrestricted funds have no such restrictions on their use and may be applied for any charitable purpose in accordance with the church’s aims and objectives. Details of Funds are shown at note 12.

ix. Pensions The Church makes contributions towards a defined contribution pension scheme equivalent to 6% of salary for relevant staff.

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Warlingham Methodist Church

2. Donations & legacies Unrestricted
£
Restricted
£
2020
Total
£
2019
Total
£
Collections 69,166 10,685 75,891 146,434
Tax credits 14,207 1,395 15,602 17,739
Donations 1,336 24,500 25,336 19,081
Legacies (shown in_Other_) - - - 2,000
Total 84,709 36,580 121,289 185,254

3. Fundraising and support costs

There were no fundraising costs as fundraising activity was undertaken by church members on a voluntary basis. All support roles are undertaken by church members at no cost.

4. Salaries and associated costs

Salaries were paid to four (2019: five) employees (2 part-time youth workers, 1 part-time families’ worker, 1 part-time cleaner, equivalent to 1.8 full time equivalents).

2020
Total
£
2019
Total
£
Gross pay 44,545 46,673
Employer’s National Insurance Contributions 1,687 1,574
Employer’s pension contributions 1,554 1,819
Total staff costs 47,786 50,066

No employees received employee benefits in excess of £60,000. There is no accrual for holiday pay as it is immaterial; the holiday year ends on 31 August. All staff are paid at or above the living wage.

5. Trustee payments and expense

No trustees received any payments for additional services to the Church (2019: £Nil).

Expenses refunded to Trustees, covering equipment, stationery supplies, catering supplies and repair costs, all supported by receipts were paid to 3 Trustees (2019:3 Trustees). The total amount of expenses was £3,253 (2018-19: £1,232). The increase this year relates to the purchase a laptop for family work and COVID hygiene supplies.

6. Independent Examination fees

No fees were charged by the independent examiner for the independent examination or any other service (2019: £Nil).

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Warlingham Methodist Church

7. Tangible Fixed Assets

Plant and Fixtures and Assets under
**Buildings ** machinery **fittings ** construction Total
£ £ £ £ £
Cost or valuation
At 1 September 2019 1,674,112 61,920 78,829 - 1,814,861
Additions in theyear - - - - -
Revaluations in theyear - - - - -
_Less:_Disposals in theyear - - - - -
At 31 August 2020 1,674,112 61,920 78,829 - 1,814,861
Depreciation
At 1 September 2019 - 18,584 78,829 - 97,413
Additions in theyear - 10,834 - - 10,834
Revaluations in theyear - - - - -
_Less:_Disposals in theyear - - - - -
At 31 August 2020 - 29,418 78,829 - 108,247
Net Book Value
At 31 August 2020
1,674,112 32,502 - - 1,706,614
Net Book Value
At 31 August 2019
1,674,112 43,336 - - 1,717,449

The Church has no freehold land.

8. Capital Commitments

The church has no capital commitments (2019, none).

9. Cash at bank and in hand

2020
£
2019
£
Church HSBC Account and impress account 31,236 19,860
Internal Organisations 697 697
CFB Accounts 77,292 72,983
109,225 93,540

10. Debtors

2020
£
2019
£
GiftAid due **22,387 ** 7,870

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Warlingham Methodist Church

11. Creditors: amounts falling due within one year

2020
£
2019
£
Trade creditors - -
Collection due to others 216 66
216 66

12. Funds

Fund Balance at
1-Sep-2019
Balance at
31-Aug-2020
Income Expenditure Transfers
£ £ £ £ £
General 1,787,361 106,271 100,604 1,793,028
Total unrestricted 1,787,361 106,273 100,607 1,793,028
Youth & Families work 24,152 34,160 17,884 40,428
BuildingFund 6,583 4,485 2,097
Alpha course - 750 750
Weekend Retreat - 1,760 1,760 -
Internal organisations 697 697
Benevolent Fund - 1,010 1,010
Total restricted 31,432 37,680 24,129 44,983
Total Funds 1,818,793 1,838,011

Youth & Families work funds are to meet the costs of employing the youth and family worker and the costs of activities related to youth and family related event costs.

Building Fund resources are for the purpose of refurbishing the church and halls. Funds given by church members to the Building Fund may be used also for the general maintenance costs of the buildings. Alpha course resources related to the running Alpha courses and Christianity explored.

The Weekend Retreat fund was to meet the cost of a retreat to a Christian centre for those new to the church, particularly low-income families.

Internal organisations are resources and costs related to running the church Badminton club and Women’s group. These have been inactive.

Benevolent Fund was created this year to support those in hardship as a result of changes caused by government rules and the economic downturn as a result of Covid,

13. Related Party Transactions

There were no related party transactions during the year.

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