## 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**
1
## 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.
2
## 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)
3
## 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:
- 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.
Claire Welling
28/3/2022
## **West Yorkshire Community Accounting Service**
Stringer House 34 Lupton Street Leeds LS10 2QW
4
## 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.
5
## 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)
6
## 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.
7
## 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|
8
## 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|
|---|---|---|---|
9
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|
|---|---|---|
10
## 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|
|---|---|---|---|---|
11