2020-09-30-accounts - South Bank Sanctuary Church of the Nazarene

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South Leeds Church of the Nazarene

Charity number 1161121

Annual Report and Financial Statements

for the year ended 30 September 2020

South Leeds Church of the Nazarene

Annual Report and Financial Statements for the year ended 30 September 2020

Contents	Page
Trustees' report	2 to 4
Examiner's report	5
Statement of financial activities	6
Balance sheet	7
Notes to the accounts	8 to 12

Prepared by West Yorkshire Community Accounting Service

South Leeds Church of the Nazarene

Trustees' report for the year ended 30 September 2020

Reference and administrative details of the charity, its trustees and advisors

The trustees during the financial year and up to and including the date the report was approved were: Name Position Dates

David Montgomery Linda Boston Geoff Alker Jenna Jones Karen Alker Carole Rayner Livia Simon Tony Musgreave Sandra Musgreave Judith Hemsworth

Chairperson Secretary Treasurer Appointed 22 March 2020 Youth Leader Missions Leader

Appointed 22 March 2020 Appointed 22 March 2020 Appointed 22 March 2020 Resigned 22 March 2020

Charity number

1161121

Registered in England and Wales

Registered and principal address

Bankers

2 Hunslet Hall Road Yorkshire Bank Beeston 1 The Penny Hill Centre Leeds Church Street LS11 6TT Hunslet Leeds LS10 2AP

Independent examiner

Claire Welling West Yorkshire Community Accounting Service Stringer House 34 Lupton Street Leeds LS10 2QW

Structure, governance and management

The CIO is governed by a constitution adopted on 6 March 2015. The governing document is based on the Manual of the Global Church of the Nazarene where UK law permits.

The church/CIO is a member of the Church of the Nazarene British Isles South District (a charitable company limited by guarantee, company no. 7028764; charity no. 1133336) which in turn is a member of the Global Church of the Nazarene which has its headquarters in Lenexa, USA.

Method of recruitment and appointment of trustees

The Pastor of the church is ex-officio chairperson of the Board of Charity Trustees and his/her position is reviewed after two years and then every four years after that.

The remaining trustees are elected annually or every two years by the members of South Leeds Church of the Nazarene at the annual general meeting held in February each year.

Objectives and activities

The charity's objects

The objects of the CIO are the advancement of the Christian faith as part of the Church of the Nazarene inc and the district principally but not exclusively in Northern England.

South Leeds Church of the Nazarene

Trustees' report (continued) for the year ended 30 September 2020

Objectives and activities (continued)

The charity's main activities

We offer teaching around the Christian faith and a place for worship. This year we have also organised bible studies. During lockdown we used Facebook live and Zoom to continue to communicate our core Christian values.

We ran a youth ministry for local children which also operated on Zoom.

We provided a free meal twice a month until lockdown, and then started a foodbank delivering food to those in need. Morrison’s helped us with foodbank supplies and Leeds City Council gave us some financial help, the rest of the funds came from church funds.

Up until lockdown we provided a men’s and a ladies fellowship evening with various activities open to all. After lockdown we provided a men’s fellowship via Zoom.

Up until lockdown we ran a community craft café which is a free drop in place for creative work and a place to meet for coffee.

Up until lockdown we rented our premises to local community groups. We also run a charity shop.

Public benefit statement

In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular advancement of the Christian faith and to serve and enhance the local community.

Achievements and performance

The charity shop has been an opportunity for the church to train local people in order that they can seek employment having had work experience.

The Craft Café provides a safe environment where people can come and learn new craft ideas but talk with each other. It is a great self-help group and the leaders sign post individuals to other agencies for support. The group has been growing and is meeting its aims which are to help reduce loneliness and support people suffering with mental health issues.

We provide a meal twice a month which is open to anyone and free of charge.

We provide a men’s and a ladies fellowship evening with various activities open to all.

We rent our premises to the local community.

We run a foodbank and deliver food to people’s homes.

This year we supported another charity called Zarach which provides beds for children.

Financial review

The net income for the year was £827, including net income of £49 on unrestricted funds and net income of £778 on restricted funds.

Reserves policy

The charity's free reserves, excluding fixed assets, at the year end were £47,944. The church will implement the following policy:

We should maintain sufficient reserves to meet foreseeable commitments;

We must not operate a policy of progressive increase of reserves for no identifiable purpose; The current reserves are designed to cover committed costs for a year, plus uncommitted but expected nonessential expenditure for a quarter, plus designated funds to support expected future commitments, which at various times might include provision for replacing the roof, renewal of the heating system and specific commitments related to plans for future serving and mission activities.

The reserves should be reviewed annually to determine the resources the church has or can make available to spend on the purposes of the church, once it has met its commitments and covered its other planned expenditure.

South Leeds Church of the Nazarene

Trustees' report (continued) for the year ended 30 September 2020

Impact of the Covid-19 pandemic

At the time of signing these accounts the charity has been impacted by the global Covid-19 virus. The trustees have reassessed the charity’s ability to continue for at least 12 months from the date that the accounts are approved and conclude that no material uncertainties exist that cast significant doubt on the charity’s ability to continue as a going concern. The government Covid relief grants and furlough scheme continue to be crucial to the survival of the charity.

Signed on behalf of the board of trustees:

Signed: D.Montgomery (Trustee)

Name: D.Montgomery Date: 24th February 2021

South Leeds Church of the Nazarene

Independent examiner's report to the trustees of South Leeds Church of the Nazarene

I report to the charity trustees on my examination of the accounts of the CIO for the year ended 30 September 2020, which are set out on pages 6 to 12.

Responsibilities and basis of report

As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the CIO's accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material 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 Charities Act;
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.

Signed: C.Welling Name: Claire Welling

Date: 24/2/21

West Yorkshire Community Accounting Service

Stringer House 34 Lupton Street Leeds LS10 2QW

South Leeds Church of the Nazarene

Statement of Financial Activities

(including summary income and expenditure account) for the year ended 30 September 2020

Notes 2020 Unrestricted funds £ Income from: Grants (2) 10,000 Offerings 12,769 Gift Aid 14,177 Shop takings 47,600 Rents received 4,647 Donations 5,288 Event income - Other income 1,170 Interest 7 Total income 95,658 Expenditure on: Staffing costs (3) 47,950 Utilities 5,349 Events expenses 1,078 Church domestic costs 740 Repairs and maintenance 3,146 Licences 563 Activities expenditure 1,965 Insurance 114 Gifts 326 Book allowance and mileage - Church and office supplies 611 Visiting speakers and travel expenses 2,436 Miscellaneous 189 Building works 3,346 Phone and internet 1,510 District and NMI budgets 7,354 Shop expenses 12,716 Accountancy 1,020 Staff bonus and honorarium 1,025 Equipment 1,835 Church fixtures and fittings - Training - Donations to others 2,190 Volunteer exps 91 Refreshments 55 Total expenditure 95,609 Net income / (expenditure) 49 Fund balances brought forward 687,634 Fund balances carried forward (4) 687,683	2020 Restricted funds £ 3,377 - - - - 778 - - - 4,155 3,377 - - - - - - - - - - - - - - - - - - - - - - - - 3,377 778 1,964 2,742	2020 Total funds £ 13,377 12,769 14,177 47,600 4,647 6,066 - 1,170 7 99,813 51,327 5,349 1,078 740 3,146 563 1,965 114 326 - 611 2,436 189 3,346 1,510 7,354 12,716 1,020 1,025 1,835 - - 2,190 91 55 98,986 827 689,598 690,425	2019 Total funds Restated £ - 26,431 21,456 45,050 6,810 10,872 99 542 6 111,266 55,349 6,646 1,244 - 9,350 759 1,262 2,202 3,780 158 1,304 2,371 186 1,138 1,358 2,797 11,972 1,020 - 270 15,372 693 90 202 1,006 120,529 (9,263) 698,861 689,598

All incoming resources and resources expended derive from continuing activities.

South Leeds Church of the Nazarene

Balance sheet

as at 30 September 2020 2020 Unrestricted £ Fixed assets Tangible assets (5) 639,739 Total fixed assets 639,739 Current assets Cash at bank and in hand (6) 48,964 Total current assets 48,964 Current liabilities: amounts falling due within one year Accruals 1,020 Total current liabilities 1,020 Net current assets / (liabilities) 47,944 Total assets less current liabilities 687,683 Net assets 687,683 Funds Unrestricted funds 687,683 Restricted funds - Total funds 687,683	2020 Restricted £ - - 2,742 2,742 - - 2,742 2,742 2,742 - 2,742 2,742	2020 Total £ 639,739 639,739 51,706 51,706 1,020 1,020 50,686 690,425 690,425 687,683 2,742 690,425	2019 Total £ 646,447 646,447 44,171 44,171 1,020 1,020 43,151 689,598 689,598 687,634 1,964 689,598

The financial statements were approved by the board of trustees on

Date: 24th February 2021

Signed: D Montgomery (Trustee)

Name D.Montgomery

South Leeds Church of the Nazarene

Notes to the accounts

for the year ended 30 September 2020

1 Accounting policies

Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The change in the preparation basis has required the restatement of values relating to fixed assets and creditors on the balance sheet. The 2019 accountancy costs on the statement of financial activities also The previous year's accounts have been restated on an accruals basis.

Going concern

The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.

Grants and donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.

Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.

Donated goods for resale are valued at the amount actually realised upon their sale.

Expenditure and liabilities

Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.

Grants payable without performance conditions

Where there are no conditions attaching to the grant that enables the donor charity to realistically avoid the commitment, a liability for the full funding obligation must be recognised.

Taxation

As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:

Freehold land: nil

Freehold buildings: in line with residual value

South Leeds Church of the Nazarene

Notes to the accounts continued

for the year ended 30 September 2020

1 Accounting policies continued

Pensions

The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

2 Grants LCC business grant Job Retention Scheme grant 3 Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions Payroll administration charges Stipend	2020 Unrestricted funds £ 10,000 - 10,000	2020 Restricted funds £ - 3,377 3,377	2020 Total funds £ 10,000 3,377 13,377 2020 £ 48,288 1,618 (1,618) 1,879 1,160 - 51,327	2019 Total funds £ - - - 2019 £ 46,209 1,456 (1,456) 1,439 1,088 6,613 55,349

The average number employees during the year was 8.6, being an average of 2.8 full time equivalent (2019: 7, 2.8 FTE).

Defined contribution pension scheme Costs of the scheme to the charity for the year 4 Restricted funds Balance b/f Incoming £ £ Building fund 1,964 778 Job Retention Scheme funding - 3,377 1,964 4,155 Fund name Purpose of restriction	Outgoing £ - 3,377 3,377	2020 £ 1,879 Transfers £ - - -	2019 £ 1,439 Balance c/f £ 2,742 - 2,742

Building fund Towards building works for the church and manse Job Retention Scheme funding To fund furloughed workers during the Covid-19 pandemic

South Leeds Church of the Nazarene

Notes to the accounts continued

for the year ended 30 September 2020

5 6	Tangible assets Cost At 1 April 2019 Additions Disposals At 31 March 2020 Net book value At 31 March 2020 At 31 March 2019 Cash at bank and in hand Yorkshire bank - church & shop Yorkshire bank - NMI account Yorkshire bank - Sunday school Yorkshire bank - Building fund Church petty cash Shop cash float Yorkshire Building Society CAF shop CAF church	487,400 - - 487,400 487,400 487,400 Church	£ 159,047 152,339 (159,047) 152,339 152,339 159,047 2020 £ 45,218 749 - 2,742 69 2,928 - - - 51,706 Manse	Total £ 646,447 152,339 (159,047) 639,739 639,739 646,447 2019 £ 17,233 1,281 411 13,989 514 366 1,964 2,448 5,965 44,171

South Leeds Church of the Nazarene

Notes to the accounts continued

for the year ended 30 September 2020

7 Related party transactions

Trustee expenses

No trustee received any expenses during this year or the previous year.

Trustee remuneration and benefits

Name of trustee Legal authority David Montgomery Governing document Linda Boston Governing document Jenna Jones Governing document Livia Simon Governing document Tony Musgreave Governing document	2020 £ 8,955 2,375 11,152 2,821 3,068 28,371	2019 £ 12,786 1,382 6,924 - - 21,092

No trustee received any other remuneration or benefit during this or the previous year.

Other related party transactions

The church manse was sold to Sarah and David Thornton during the year. Linda Boston (Trustee) is Sarah’s mother. Linda was not involved in the discussions re the sale of the manse. The manse was independently surveyed and valued and it was not sold below market value.

Remuneration and benefits received by key management personnel

The key management personnel of the charity include the trustees. The total employee benefits received by the trustees were £28,371 (previous year: £21,092).

8 Operating leases

Within one year In the second to fifth years inclusive Expected future minimum lease payments over the remaining life of the lease, analysed into the period in which the commitment falls due:	Shop lease £ 4,492 1,058 5,550

South Leeds Church of the Nazarene

Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 30 September 2020

2020 2019 Unrestricted Unrestricted funds funds £ £ Income Grants 10,000 - Offerings 12,769 26,431 Gift Aid 14,177 21,456 Shop takings 47,600 45,050 Rents received 4,647 6,810 Donations 5,288 10,085 Event income - 99 Other income 1,170 542 Interest 7 - Total income 95,658 110,473 Expenditure Staffing costs 47,950 55,349 Utilities 5,349 6,646 Events expenses 1,078 1,244 Church domestic costs 740 - Repairs and maintenance 3,146 9,350 Licences 563 759 Activities expenditure 1,965 1,262 Insurance 114 2,202 Gifts 326 3,780 Book allowance and mileage - 158 Church and office supplies 611 1,304 Visiting speakers / travel expenses 2,436 2,371 Miscellaneous 189 186 Building works 3,346 1,138 Phone and internet 1,510 1,358 District and NMI budgets 7,354 2,797 Shop expenses 12,716 11,972 Accountancy 1,020 1,020 Staff bonus and honorarium 1,025 - Equipment 1,835 270 Church fixtures and fittings - 15,372 Training - 693 Donations to others 2,190 90 Volunteer exps 91 202 Refreshments 55 1,006 Total expenditure 95,609 120,529 Net income / (expenditure) 49 (10,056) Fund balances brought forward 687,634 697,690 Fund balances carried forward 687,683 687,634	2020 Restricted funds £ 3,377 - - - - 778 - - - 4,155 3,377 - - - - - - - - - - - - - - - - - - - - - - - - 3,377 778 1,964 2,742	2019 Restricted funds £ - - - - - 787 - - 6 793 - - - - - - - - - - - - - - - - - - - - - - - - - - 793 1,171 1,964	2020 Total funds £ 13,377 12,769 14,177 47,600 4,647 6,066 - 1,170 7 99,813 51,327 5,349 1,078 740 3,146 563 1,965 114 326 - 611 2,436 189 3,346 1,510 7,354 12,716 1,020 1,025 1,835 - - 2,190 91 55 98,986 827 689,598 690,425	2019 Total funds £ - 26,431 21,456 45,050 6,810 10,872 99 542 6 111,266 55,349 6,646 1,244 - 9,350 759 1,262 2,202 3,780 158 1,304 2,371 186 1,138 1,358 2,797 11,972 1,020 - 270 15,372 693 90 202 1,006 120,529 (9,263) 698,861 689,598