South Leeds Church of the Nazarene
Charity number 1161121
Annual Report and Financial Statements for the year ended 30 September 2021
South Leeds Church of the Nazarene
Annual Report and Financial Statements for the year ended 30 September 2021
| Contents | Page |
|---|---|
| Trustees' report | 2 to 3 |
| Examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the accounts | 7 to 11 |
Prepared by West Yorkshire Community Accounting Service
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South Leeds Church of the Nazarene
Trustees' report for the year ended 30 September 2021
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
Position Dates David Montgomery Secretary Linda Boston Secretary Resigned June 2021 Geoff Alker Treasurer Jenna Jones Chairperson Karen Alker Missions Leader Carole Rayner Livia Simon Tony Musgreave Sandra Musgreave
Charity number
1161121
Registered in England and Wales
Registered and principal address Bankers 2 Hunslet Hall Road Virgin Money 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.
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South Leeds Church of the Nazarene
Trustees' report (continued) for the year ended 30 September 2021
Objectives and activities (continued)
The charity's main activities
This year we offered teaching around the Christian faith and a place for worship. We have also organised bible studies. During lockdown we used Facebook live and zoom to continue to communicate our core Christian values.
We have run a youth ministry for local children which during lockdown also operated on zoom.
We provide a foodbank and have delivered food all year.
We provide a men’s fellowship which has met on Zoom and in person.
We have just recently restarted our craft café which is a free drop in place for creative work and a place to meet for coffee.
We have recently started a community garden with volunteers.
We rent our premises to local community groups and we 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 men’s breakfast supporting men in the community with support and a chance to talk. 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 £3,953, including net income of £3,103 on unrestricted funds and net income of £850 on restricted funds.
Reserves policy
The charity's free reserves, excluding fixed assets, at the year end were £48,885.
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 target reserves level is 3 months running expenses if the church and charity shop should suddenly come to a halt.
We are currently aware that our central heating system may need to be renered in the future and whis would cost in the region of £14,000.
We have an excess in the bank and have decided to reduce our electricity bill in the long term by enabling the church to use solar power. This is also about reducing our carbon footprint.
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.
Signed on behalf of the board of trustees on 8/2/2022
David Montgomery (Trustee)
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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 2021, which are set out on pages 5 to 11.
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:
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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
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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.
Claire Welling
28/3/2022
West Yorkshire Community Accounting Service
Stringer House 34 Lupton Street Leeds LS10 2QW
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South Leeds Church of the Nazarene
Statement of Financial Activities
(including summary income and expenditure account) for the year ended 30 September 2021
| Notes 2021 Unrestricted funds £ Income from: Grants (2) 12,098 Offerings 25,448 Gift Aid 2,937 Shop takings 54,773 Rents received 6,430 Donations 469 Other income 4,941 Interest - Total income 107,096 Expenditure on: Staffing costs (3) 53,668 Utilities 3,453 Events expenses 1,127 Church domestic costs 321 Repairs and maintenance 8,828 Licences 526 Activities expenditure 4,039 Insurance 1,513 Gifts and awards 476 Church and office supplies 671 Visiting speakers and travel expenses 2,604 Miscellaneous - Building works - Phone and internet 848 District and NMI budgets 7,081 Shop expenses 9,795 Accountancy and independent examination 1,020 Staff bonus and honorarium 1,540 Equipment 3,557 Donations to others 2,084 Volunteer expenses - Refreshments 249 Publicity 53 Depreciation 540 Total expenditure 103,993 Net income / (expenditure) 3,103 Fund balances brought forward 687,683 Fund balances carried forward (4) 690,786 |
2021 Restricted funds £ 7,114 - 150 - - 700 - - 7,964 7,114 - - - - - - - - - - - - - - - - - - - - - - - 7,114 850 2,742 3,592 |
2021 Total funds £ 19,212 25,448 3,087 54,773 6,430 1,169 4,941 - 115,060 60,782 3,453 1,127 321 8,828 526 4,039 1,513 476 671 2,604 - - 848 7,081 9,795 1,020 1,540 3,557 2,084 - 249 53 540 111,107 3,953 690,425 694,378 |
2020 Total funds Restated £ 13,377 24,631 6,307 47,600 4,647 2,074 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 |
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
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South Leeds Church of the Nazarene
Balance sheet
| as at 30 September 2021 2021 Unrestricted £ Fixed assets Tangible assets (5) 641,901 Total fixed assets 641,901 Current assets Debtors 1,448 Cash at bank and in hand (6) 48,547 Total current assets 49,995 Current liabilities: amounts falling due within one year Accruals 1,110 Total current liabilities 1,110 Net current assets / (liabilities) 48,885 Total assets less current liabilities 690,786 Net assets 690,786 Funds Unrestricted funds 690,786 Restricted funds - Total funds 690,786 |
2021 Restricted £ - - 150 3,442 3,592 - - 3,592 3,592 3,592 - 3,592 3,592 |
2021 Total £ 641,901 641,901 1,598 51,989 53,587 1,110 1,110 52,477 694,378 694,378 690,786 3,592 694,378 |
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 |
|---|---|---|---|
The financial statements were approved by the board of trustees on 8/2/2022
David Montgomery (Trustee)
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South Leeds Church of the Nazarene
Notes to the accounts
for the year ended 30 September 2021
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. There has been no change to the accounting policies since last year.
A correction has been made to the allocation between Gift Aid, Donations and Offerings income, which was misanalysed last year. (Gift Aid has been reduced by £7,870, Offerings increased by £11,862 and Donations decreased by £3,992.)
No other changes have been made to the accounts for previous years.
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.
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South Leeds Church of the Nazarene
Notes to the accounts continued
for the year ended 30 September 2021
1 Accounting policies (continued)
Tangible fixed
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 Fixtures and fittings: over 5 years
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.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
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.
Leases
Rents under operating leases are charged on a straight line basis over the lease term or to an earlier date if the lease can be determined without financial penalty.
| 2 Grants LCC business grant HMRC Job Retention Scheme 3 Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions Payroll administration charges |
2021 Unrestricted funds £ 12,098 - 12,098 |
2021 Restricted funds £ 7,114 7,114 |
2021 Total funds £ 12,098 7,114 19,212 2021 £ 57,264 2,591 (2,591) 2,419 1,100 60,782 |
2020 Total funds £ 10,000 3,377 13,377 2020 £ 48,288 1,618 (1,618) 1,879 1,160 51,327 |
|---|---|---|---|---|
The average number employees during the year was 7.5, being an average of 3.0 full time equivalent (2020: 8.6, 2.8 FTE). There were no employees with emoluments above £60,000.
| Defined contribution pension scheme | 2021 | 2020 |
|---|---|---|
| £ | £ | |
| Costs of the scheme to the charity for the year | 2,419 | 1,879 |
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South Leeds Church of the Nazarene
Notes to the accounts continued
for the year ended 30 September 2021
| 4 5 **6 ** |
Restricted funds Building fund HMRC Job Retention Scheme Fund name Building fund HMRC Job Retention Scheme Tangible assets Cost At 1 October 2020 Additions At 30 September 2021 Depreciation At 1 October 2020 Charge for year At 30 September 2021 Net book value At 30 September 2021 At 30 September 2020 Cash at bank and in hand Cash at bank Cash in hand |
Balance b/f Incoming Outgoing Transfers £ £ £ £ 2,742 850 - - - 7,114 7,114 - 2,742 7,964 7,114 - Purpose of restriction Towards building works for the church and manse Towards the costs of furloughed staff £ £ - 487,400 152,339 2,702 - - 2,702 487,400 152,339 - - - 540 - - 540 - - 2,162 487,400 152,339 - 487,400 152,339 2021 £ 47,750 4,239 51,989 Manse Church Fixtures and fittings |
Balance c/f £ 3,592 - 3,592 Total £ 639,739 2,702 642,441 - 540 540 641,901 639,739 2020 £ 48,709 2,997 51,706 |
|---|---|---|---|
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Notes to the accounts continued
South Leeds Church of the Nazarene
for the year ended 30 September 2021
7 Related party transactions
Trustee expenses
No trustee received any expenses during this year or the previous year.
Trustee remuneration and benefits
| 2021 £ Name of trustee Reason Legal authority David Montgomery Employee Governing document 16,446 Linda Boston Employee Governing document 553 Jenna Jones Employee Governing document 13,212 Livia Simon Employee Governing document 3,657 Tony Musgreave Employee Governing document 3,606 Geoff Alker Honorarium Governing document 500 37,974 Amount of pension contributions paid by the charity for the reporting period David Montgomery 752 Jenna Jones 607 Livia Simon 165 1,524 |
2020 £ 8,955 2,375 11,152 2,821 3,068 500 28,871 |
|---|---|
No trustee received any other remuneration or benefit during this or the previous year.
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 £37,474 (previous year: £28,371).
No trustee received any remuneration or benefit in this capacity during this or the previous year.
8 Grant making
| Total value of grants Purpose for which grants were made 9 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: Churches Together Zarach charity |
Grants to institutions £ 1,084 1,000 2,084 2021 £ 1,058 - 1,058 |
2020 £ 4,492 1,058 5,550 |
|---|---|---|
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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 2021
| 2021 2020 Unrestricted Unrestricted funds funds £ £ Income Grants 12,098 10,000 Offerings 25,448 24,631 Gift Aid 2,937 6,307 Shop takings 54,773 47,600 Rents received 6,430 4,647 Donations 469 1,296 Other income 4,941 1,170 Interest - 7 Total income 107,096 95,658 Expenditure Staffing costs 53,668 47,950 Utilities 3,453 5,349 Events expenses 1,127 1,078 Church domestic costs 321 740 Repairs and maintenance 8,828 3,146 Licences 526 563 Activities expenditure 4,039 1,965 Insurance 1,513 114 Gifts and awards 476 326 Church and office supplies 671 611 Visiting speakers / travel expenses 2,604 2,436 Miscellaneous - 189 Building works - 3,346 Phone and internet 848 1,510 District and NMI budgets 7,081 7,354 Shop expenses 9,795 12,716 Accountancy / independent exam 1,020 1,020 Staff bonus and honorarium 1,540 1,025 Equipment 3,557 1,835 Donations to others 2,084 2,190 Volunteer expenses - 91 Refreshments 249 55 Publicity 53 - Depreciation 540 - Total expenditure 103,993 95,609 Net income / (expenditure) 3,103 49 Fund balances brought forward 687,683 687,634 Fund balances carried forward 690,786 687,683 |
2021 Restricted funds £ 7,114 - 150 - - 700 - - 7,964 7,114 - - - - - - - - - - - - - - - - - - - - - - - 7,114 850 2,742 3,592 |
2020 Restricted funds £ 3,377 - - - - 778 - - 4,155 3,377 - - - - - - - - - - - - - - - - - - - - - - - 3,377 778 1,964 2,742 |
2021 Total funds £ 19,212 25,448 3,087 54,773 6,430 1,169 4,941 - 115,060 60,782 3,453 1,127 321 8,828 526 4,039 1,513 476 671 2,604 - - 848 7,081 9,795 1,020 1,540 3,557 2,084 - 249 53 540 111,107 3,953 690,425 694,378 |
2020 Total funds £ 13,377 24,631 6,307 47,600 4,647 2,074 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 |
|---|---|---|---|---|
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