Registered Charity Number: 1159621 Sheffield Church of The Nazarene ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS For the year ended 30 September 2020 Sheffield Church of The Nazarene Contents Page Legal and administrative information Trustees, annual report Independent Examiner's Report to the Trustees Receipts and payments account io Statement of assets and liabilities li Notes to the accounts 12-13 VAS Community AccountaDcy Sheffield Church of The Nazarene Legal an(1 administrative information for the year ended 30 September 2020 Trustees Position Date Appointed 0810212015 2411212014 2510212019 2411212014 2510212019 2411212014 0810312020 0410312018 0810212015 0110612016 0410312018 2210312021 2210312021 2210312021 Oate removed 2210312021 Alan Robeit50n Audrey Woodall Barrie Ritchie Helen Roberts Luke Berry Mark Strong Philip Sidebotham Rhiannon Meade Steve Leach Rev Timothy Burton Tom Salmons Paul Salmons Vivien Jessop Simon Cheatle Secretary NYI Presidentnreasurer Temporary Ch3irper50n 2210312021 2210312021 2210312021 28/0412020 3111012019 2310412021 Charity number 1159621 Contact address Fitzroy Road Sheffield S23BB Independent Examlner Sarah Lightfoot, FCA DChA On behalf of.. VAS Community Accountancy The Circle 33 Rockingham Lane Sheffield SI 4FW VAS Community AccountaDcy Sheffield Church of The Nazarene Trustees, annual report For the year ended 30 September 2020 The Trustees submit their annual report and the financial statement5 for the year ended 30 September 202CI. The financial statements comply with the Charities Act 2011, the governing document, and the charities Statement of Recommended Practice (applicable to charitie5 preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland,. FRS 1021 issued in October 2019. Structure, governance and management Sheffield Church of The Nazarene is a Charitable Incorporated Organisation which registered with the Charitv Commission on 24 December 2014. Sheffield Church of The Nazarene is governed by the rules and regulations set down in its governing document. Trustee Appointments The Senior Pastor of the church is ex-officio chairperson of the Board of Charity Trustees and their position is reviewed after two years and then every four years after that. Rev. Tim Burton resigned in October 2019.. in the absence of a Senior Pastor, Mark Strong, and then Phil Sidebotham, has temporarily taken on the role of chairperson of the Board of Charity Trustees. The remaining Trustees are elerted annually by the member5 of Sheffield Church of The Nazarene at the annual general meeting held in February / March each year. The Chairperson is ex officio by virtue of his/her office as Pastor of Sheffield Church of The Nazarene and the NYI and Children's Ministry representatives are also ex officio by virtue of their office within the Church. The Pastor5 of the church are ex-officio Trustees of the CIO. Governance and Wlder Network The Board of Trustees meets regularly, normally on a monthly basis to consider the work and manaeement of the church and assess and plan the financial and other aspects of the work and direction of the charity. The church/CIO is a member of the Church of The Nazarene Britlsh Isles South District la Charitable Company Limited by Guarantee, Company No 7028764., Charity No 11333361 which in turn is a member of The Global Church of The Nazarene which has its headquarters in Lenexa, USA. Committees Committee chair and members are appointed annually by the Board of Trustees. Committees report to the Church Board monthly at board meetings. Committees make recommendations to the board but do not make decisions. Committee Members as at 30 September 2020.. Finance Committee Helen Roberts- Chair Sophie Peel-yates lon Dixon Barrie Ritchie Luke Berry Christine Ritchie (from 23104120211 Paul Salrnons (from 23/04120211 Committee Sophie Peel-yates Chair Audrey Woodall Jonathan Holman Alan Robertson Andrew Evans Health and Safet Committee Mark Strong Chair Sophie Peel-yates Helen Roberts Simon Cheatle Ifrom 23104120211 Jo 8ambrough Ifrtsm 23104120211 Pastoral Search Committee Phil Sidebotham. Chair Helen Roberts Margaret Meade Simon Cheatle Plannin Committee Chris Ritchie, Chair Helen Roberts Sophie Peel-yates Audrey Woodall Jo Lomas VAS Community AccountaDcy Sheffield Church of The Nazarene Trustees, annual report- continued For the year ended 30 September 2020 Staffin8 The Trustees recognise and are grateful for the hard work and commitment to all staff, all of who work over and above to promote the values and aims of the Church. Salaries are reviewed annually in accordance with "Staff Pay Review Policrf, and guidance provided by the holding trustee, Sheffield Church of the Nazarene British 151es South District. Normally a 2.5% annual uplift is recommended by the holding trustee and implemented by the church. staff for this period have been: Date Resigned 3111012019 0811112020 Rev Timothy Burton Tom Salmons Lina Antonio Sophie Peel-yates Senior Pastor 37.5 hrs / wk 37.5 hrs I wk 20hrs/wk 5hrs/wk A550ciate Pastor Children & Family Worker Administrator 3110312021 lune Saunders Hannah Davies David Saunders Cleaner / admin assistant Cleaner Cleaner 6.5 hrs / wk 2hrslwk 2hrs ] wk 0210912020 Arthur Snijders was commissioned as a Pastoral Consultant, on a self-employed basis, from 0110912020 Rlsk Management The risk management strategy of the thureh is in a continual protes5 of formulation in response to the changing circumstances that could impact upon the work of the church. The Board of Trustees, in considering this important task. take direction from on-going discussions with members both internally and through meetings with the Church of The Na2arene British Isles South District and othei adviser5, adopting 3ppropri3te policies as required or a5 they become necessary to the ongoing work of the church. Oblectlves and Actlvltles The object5 of the CIO are the advancement of the Christian faith a5 part of the church of the Nazarene inc. and the district principally but not exclusively in northern England. In practice the charity undertakes the following.. al The advancement of the Christian faith as part of the Global Church of The Nazarene and the Church of the Nazarene British Isles South District. bl To serve and enhance the local community. Publlc Benefit The Trustees have had due regard to the Charity Commission guidance on public benefit reporting in deciding what activities the charity should undertake. This report illustrates the activities undertaken to support the public benefit requirement. Review of the Year The aims for the year included: The advancernent of the Christian Faith a5 Part of the international Church of the Nazarene and the District principally but not exclusively in Sheffield. Serving and enhancing the local communitv. Continuation of Christian worship meetings and promotion of the Christian faith in accordance with the principles of the Church of The Nazarene. Work with children and young people to promote the Christian faith and /or provide local social benefit. Work with senior adults to promote Christian faith and / or provide local social benefit. Continuing to develop link5 Wlth the local community, to enhance the involvement of the chureh with and relevant local agencie5 on behalf of the local cornmunity. VAS Community AccountaDcy Sheffield Church of The Nazarene Trustees, annual report- continued For the year ended 30 September 2020 Continue to partner with and make the church building available to relevant lotal agencies seeking t benefit the local community. Continue to Support Gleadless Valley Foodbank with donations and volunteer time. Actively recruit and support volunteers and involvement in groups and in local communitv. During the year the charity fulfilled its aims by running a variety of activities and resources on line and in person, in line with Government Coronavirus Safety Guidelines, as follows.. The church was open for individual prayer, Sunday Services or Prayer Service5, as allowed by the Government Guidelines. Weekly content posted on the church website.. YouTube worship suggestions, worship thoughts, sermons, -Thought for the week" Sunday School resources. Remote Church Podcast. Weekly prayer meeting on "zoom" Over Chri5trnas 2020, in-per50n Sunday School, Wednesday Club Christmas Party, Youth Christmas Party and a Christrna5 Party for vulnerable people connected to the Church. Regular contact made by Wednesday Club and Luncheon Club leadership to members, Wlth letters, activitie5 and gifts. -The Circle" mental health support group, from January 2021. Encouraged informal contact between congreeation and members. Involved in the Sheffield -wide 'Arise" initiative over Easter 2021. Opened up our building to hire to organi5ations that were allowed to provide service5 during the Coronavirus.. Supported Heeley City Farm to run "Healthy Holidays" project, August 2020. Partnered with "Shaped Educational Provision~ from September 2020 onwards. Sarah Cotton Yoga, September and October 2020. Piff-Paff Theatre Ltd, August 2020. Significant events during the period include-. Staffing. 0110912020 Rev Arthur Snijders was commi55ioned a5 a Pastoral Consultant 0810312021 jo Bambrough was recruited to the role of Administrator for 10 hr5 per week. 0210912020 Hannah D3vie5 resigned from the role of Cleaner 0811112021 Tom Salmons resigned from the role of Associate Pastor 31/0312021 Sophie Peel-yates resigned from the role of Administrator Since October 2019 the Board of Trustees have been working to recruit a new Senior Pastor, and have set- up a 'Pa5toral Search Committee" to drive this process. Tom Salmons, A55ociate Pastor, stepped into vacant role5 before hi5 resignation in November 2020,. a5 did members of the Board of Trustees and of the congregation to ensure the continued smooth running of the church. Mark Strong and then Phil Sidebotharn chaired trustee meetings. Building Project. The building renovation project Wa5 completed in May 2016. There are still outstanding matters that have not been fully re501ved, rnainly related to damp in the lower ground floor store-room5, and the Trustees have continued to liaise with the architect to seek to resolve these matters. Work on this has been seriously impacted by the Coronavirus. with contractors being able to attend, nor secure materials. VAS Community AccountaDcy Sheffield Church of The Nazarene Trustees, annual report- continued For the year ended 30 September 2020 Volunteers The work planned, activities undertaken and achievements attained would not have been possible without the active involvement and hard work of all of the members and friends of the charity without whom the substantial work of the charity could not be realised. The Board of Trustees is grateful for the work and support of all the member5 and friends of the church, especially within the constrictions impts5ed by the Coronaviru5 pandemie. As at 30 September 2020 a total of 60 volunteers are willing to work with children, youth and vulnerable adults (although this work has been significantly affected by the Coronavirus pandemicl and have been vetted through the Church Safeguardine Policy and have an Enhanced DBS Discltssure. As at 30 September 2020 approximatelv 30 volunteelS Support the Church on a weekly basis, a significant decline from previou5 years due to the restrictions of the Coronavirus pandemic. Flnanclal Revlew of the Year The charity has continued throughout the year to meet and tailor the expenditure it incurs to the income received through rent for use of the building and throuEh the tithe offerings and donations received. There is much more that the Board of Tru5tee5 would like to do and we continue to explore these and the use of p055ible grants that may be available to enable these plans to become a reality. During the year rants were received as follows: £1,604 frorn Sheffield City Council for Luncheon Club Restricted income was received as follows: £4,644 donations to the building fund (including the roof appeal) £10,120 donations to various Missionary funds (Nazarene Missions International and local mission) £4,207 relating to the lunch club (including the grant) A legacy of £60,027 wa5 received in the year 2018 to 2019, and the Trustees tithed from this legacy in July 2020. The balance of thi5 legacy1£116,0291 wa5 received in January 2021.. the trustee5 agreed to tithe all income received from this legacy. All tithe payments were made by July 2021. In May 2016 the Charity took on a loan of £IOO,000 with Church of the Nazarene British Isle5 South District to be repaid over 10 years. As at September 2020 the balance outstanding was £57,220. The loan balance was fully repaid in January 2021, following receipt of the above legacy. TheTru5tees agreed on 8 February 2021 to transfer unrestricted cash funds to fully ctsver the following restricted fund deficits arising up to 30 September 2020.. Building fund- £6,256. Roof fund £2,995 Reserves The charity ha5 a policy of keeping 3 month's regular outgoings in reserve, and at times thi5 ha5 had to be reviewed at monthly Board Meetings in light of the cash flow situation during the p05t-completion Stage of the building project. As at 30 September 2020 this target was £19,000. Unrestricted cash funds held at 30 September 2020 were £36.859 after transfers to restricted funds. The building fund loan at 30 September 2020 wa5 £57,220 and was fully repaid in January 2021. VAS Community AccountaDcy Sheffield Church of The Nazarene Trustees, annual report- continued For the year ended 30 September 2020 COVID-19, March 2020 to present The coronavirus and the associated lockdown restrictions have had a serious effect upon the charity, forcing us to significantly change our day to day activities and procedures, and to re-assess our staffing and our financial management and planning. Da toDa Activities From the week commencing 16 March 2020 our Church building was closed due to lockdown measures, and social distancing was enforced. This meant that all activities that happened in the church building, and all activities that involved social contact, ceased immediatelv. The Trustees met to plan for alternative arrangements, and the church provided the following throughout the lockdown period (from 16 March 20201- Increased phone contact with people connected to the church, e.g. linking the most vulnerable with people who would call them regularly and weekly phone calls to Lunch Club members. Weekly audio-based worship and sermon thoughts with links to suggested hymns on YouTube, available both on website and CD. Set up WhatsApp group5 a5 appropriate, for example for Sunday School parent5 and carers. Used Zoom for meetings, for example Board meetings and Creche & Stretch. Introduced a new weekly Zoom prayer meeting. Sent out regular emails and mailed paper copies to those not on email. Made fuller use of the website and social media to post resources and to keep in touch with people connected to the church, e.g. weekly Sunday School resources on website and Facebook. Started a new weekly podcast to share light-hearted chat, news and information and to interview a different person Connected to the church each week. Encouraged church attendees to become involved with their nei8hbour5 and to make personal contact with people from the church. Opened the church building for individual prayer, Sunday Services or Prayer Services, as allowed by the Government Guidelines. Celebrated Christma5, in accordance with the guidelines, with variou5 Christmas parties, children's and youth clubs. Staffin and volunteers Due to the fact that the building was closed and social distancing was in place, certain staff (due to the nature of their rolel were unable to do their job working from home and the trustees agreed to furlough them on lOO% Salary, following government 8uideline5; and to top up their salary to 100% out of general funds due to a sense of moral obligation to Staff. Cleaners x3 Furloughed from 1310412020 Children and Family Worker Furloughed from 2710412020 Associate Pastor Not furloughed, able to work from home. Administrator Not furloughed, able to work frorn horne. All staff furlough was initially reviewed every 3 weeks, and then staff were on flexible furlough from I July 2020. The church made full use of volunteers during this time in areas that it was appropriate within the lockdown restrictions.. trustee meetings, making phone calls and letters to people connected to the church, doorstep visits once these were allowed, preparing online and audio resources. Wider Networks The church is a member of the Church of the Nazarene British Isles South District. BISD has supported the church during the lockdown restrictions by co-ordinating online streamed events and worship services,. by agreeinÈ variations in the loan repayments,. and by collating and distributing relevant advice and guidelines. VAS Community AccountaDcy Sheffield Church of The Nazarene Trustees, annual report- continued For the year ended 30 September 2020 Finances Trustee Executive met weekly, and the full Board of Trustees met monthly, and discussed the impact Df the pandemic on the charity finances. Period l October 2019 to 30 Se tember 2020: Key points for the 2019 to 2020 financial year, October 2019 to September 2020, compared to the previous financial year, in relation to the effect of the pandemic were.. All % are approximate. Income.. There was a 28% reduction in income from hiring out the building to external groups. There was a 55% reduction in income from clubs and activities. There was a 22% reduction in income from offerings. Despite an initial drop of 50% in income from offerinES, thi5 improved over the year a5 tru5tee5 encouraged bank tran5fer5 and cheque donation5. Expendlture.. There was a IO% reduction in expenses related to running the building, as most of these are fixed costs. There was 3 55% reduction in expenses related tts running clubs and activities. There was a 23YD reduction in the loan repayment to BISD. There was 15% reduction in staffing cost5, due to the furlough scheme, and changes in 5taffin8. There was a 23% reduction in general running costs. Period l Octobèr 2020 to resent Ima 2021: For the period l October 2020 to present (May 20211, the above trends have continued due to the continuing coronavirus restrictions on the opening and the use of the building. Balunces.. During these periods. due to the lockdown restrictions and impact on income and expenditure, the church relied on general church funds, in particular income from legacies, in order to not spend from reserves. Reserve5.' The church reserves policy is to keep 3 months running costs in reserve. During lockdown, the church maintained its reserves. Financiol Forecosts.- Financial forecasts for the church are very uncertain, due to the uncertainty caused by the global pandemic,. how long the current restrictions will continue,. to what extent we will be able to use our building as a source of income,. how lonE the furlough scheme will continue to support our staff who are unable to work,. whether our activities will be able to re-start as they were pre-pandemic,. and whether we will need to plan new ways of meeting our airn5 and funding our church. The trustees have worked on financial forecast5 for the next financial year, until l June 2022, looking at best and worst case scenarios for a range of potential outcomes and changes to our income and expenditure. These forecasts show that in the best case scenario we can continue for the whole of this period and maintain our reserves; worst case scenario is that we would need to consider redundancies and that we would not be able to maintain reserves at turrent level by the end of June 2022. In case of the worst-case scenario the Trustees would need to review the reserve5 poliry, and would in all likelihood choose to keep less cash in reserves in order to continue to run the charity. VAS Community AccountaDcy Sheffleld Church of The Nazarene Trustees, annual report- contlnued For the year endefl 30 September 2020 The likellhood or predictabiltty of the worst-case scenario occurring is hard to quantify. Most of the factors that lead to the worst-case scenario are beyond the control of the Trustees, such as: when will the Government fully lift lockdown restrictions, will the church be Bble to maintain and expand the con8regation and others who financially support the church?, and what will be the ongoing financial package for furlough? However, the charity can work to mitigate the effect of these uncontrollable factors to ensure the best possible future for the charity, to Some extent thi5 is In the charity's control. We will seek to maximise charity income by encouraging online givinE,' we will seek to maximise our building as an asset by rgnting it niit as soon as we are able,. we will make full use of any government support, grants and programmes; we will seek new ways of fulfilling our aims that are appropriate to during the lockdown. Overall, on balance, it is the opinion of the Trustees that although in twelve months the reserves could be below the target level. the charity will be able to continue for the next twelve months from signing this report. notwithstanding the uncertainties taused by the coronavirus pandemic. Pl?ns for Futuro P•.riods The Board of Trustees meets on 3 monthly bas15 to plan and look to the future of the Charity. During the Coronavirus Lockdown the Board of Trustees have been meeting weeklv. The Trustees declare that they have approved the Trustees, report above on 29 Jul 2021 and are signed on their behalf by: Print name.. Print name.. Chairperson Secretary F( T QJ6sf