## 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**
1
## 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.
2
## 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.
3
## 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
4
## 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
5
## 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.
6
## 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
7
## 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
8
## 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
9
## 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|
|---|---|---|---|---|
10
## 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|
|---|---|
11
## 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|
|---|---|---|---|---|
12