2022-09-30-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 2022

South Leeds Church of the Nazarene

Annual Report and Financial Statements for the year ended 30 September 2022

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 13

Prepared by West Yorkshire Community Accountancy Service CIO

South Leeds Church of the Nazarene

Trustees' report for the year ended 30 September 2022

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 David Montgomery Secretary Geoff Alker Treasurer Jenna Jones Chair of trustees Karen Alker Missions Leader Carole Rayner Livia Simon Tony Musgreave Sandra Musgreave Alison Montgomery Afomia Tsegai

Resigned 1 February 2022 Resigned 1 February 2022 Appointed 8 February 2022 Appointed 8 February 2022

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

Simon Bostrom FCIE

West Yorkshire Community Accountancy Service CIO

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.

South Leeds Church of the Nazarene

Trustees' report (continued) for the year ended 30 September 2022

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.

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.

We have run a youth ministry for local children.

We provide a foodbank and have provided food all year to those in need.

We provide a men’s fellowship which provides conversation and support to men.

We provided a craft café which is a free drop in place for creative work and a place to meet for coffee.

We provide a community garden which is worked on by volunteers in the community.

We rent our premises to local community groups

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. We have also collected and sent needed clothes and pharmacy items to Ukraine.

Financial review

The net income for the year was £21,054, including net income of £23,054 on unrestricted funds and net expenditure of £2,000 on restricted funds after transfers.

South Leeds Church of the Nazarene

Trustees' report (continued) for the year ended 30 September 2022

Reserves policy

The church will implement the following:

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 purpose of retaining reserves is to enable the smooth running of the charity and to enable an orderly winding up should the charity need to close.

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.

The charity's free reserves, excluding fixed assets, at the year end were £64,124. Planned expenditure for the next year is approximately £126,000

Approved by the board of trustees on 14/2/2023

David Montgomery (Trustee)

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 2022, which are set out on pages 6 to 13.

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.

Simon Bostrom FCIE

16/2/2023

West Yorkshire Community Accountancy Service CIO

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 2022

Notes 2022 Unrestricted funds £ Income from: Grants (2) - Offerings 21,530 Gift Aid 3,678 Shop takings 90,063 Rents received 7,349 Donations 2,912 Other income 11,542 Total income 137,074 Expenditure on: Staffing costs (3) 68,619 Utilities 5,442 Events expenses 973 Church domestic costs 616 Repairs and maintenance 3,205 Licences 668 Activities expenditure 6,329 Insurances 1,027 Gifts and awards 490 Church and office supplies 1,094 Visiting speakers 821 Other admin costs 98 Phone and internet 813 District and NMI budgets 4,761 Shop expenses including rent 10,359 Independent examination 1,020 Equipment and materials 332 Staff and volunteer training 148 Donations to other organisations 1,450 Travel expenses 4,256 Refreshments 527 Advertising and publicity 133 Depreciation 2,839 Total expenditure 116,020 Net income / (expenditure) 21,054 Transfers between funds 2,000 Net movement in funds 23,054 Fund balances brought forward 690,786 Fund balances carried forward (4) 713,840	2022 Restricted funds £ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (2,000) (2,000) 3,592 1,592	2022 Total funds £ - 21,530 3,678 90,063 7,349 2,912 11,542 137,074 68,619 5,442 973 616 3,205 668 6,329 1,027 490 1,094 821 98 813 4,761 10,359 1,020 332 148 1,450 4,256 527 133 2,839 116,020 21,054 - 21,054 694,378 715,432	2021 Total funds £ 19,212 25,448 3,087 54,773 6,430 1,169 4,941 115,060 62,322 3,453 1,127 321 8,828 526 4,039 1,513 476 671 - - 848 7,081 9,795 1,020 3,557 - 2,084 2,604 249 53 540 111,107 3,953 - 3,953 690,425 694,378

All incoming resources and resources expended derive from continuing activities.

South Leeds Church of the Nazarene

Balance sheet

as at 30 September 2022 2022 Unrestricted £ Fixed assets Tangible assets (5) 649,716 Total fixed assets 649,716 Current assets Debtors and prepayments (6) 2,638 Cash at bank and in hand (7) 62,742 Total current assets 65,380 Current liabilities: amounts falling due within one year Creditors and accruals (8) 1,256 Total current liabilities 1,256 Net current assets / (liabilities) 64,124 Net assets 713,840 Funds Unrestricted funds 713,840 Restricted funds - Total funds 713,840	2022 Restricted £ - - - 1,592 1,592 - 1,592 1,592 - 1,592 1,592	2022 Total £ 649,716 649,716 2,638 64,334 66,972 1,256 1,256 65,716 715,432 713,840 1,592 715,432	2021 Total £ 641,901 641,901 1,598 51,989 53,587 1,110 1,110 52,477 694,378 690,786 3,592 694,378

The financial statements were approved by the board of trustees on 14/2/2023

David Montgomery (Trustee)

South Leeds Church of the Nazarene

Notes to the accounts

for the year ended 30 September 2022

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.

No 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.

Donated assets, facilities or services are valued at their estimated value to the charity. This is the price that the charity estimates it would pay in the open market for equivalent items; or services and facilities of equivalent utility to the charity.

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.

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 Fixtures and fittings: over 5 years Computer equipment: over 3 years

South Leeds Church of the Nazarene

Notes to the accounts

for the year ended 30 September 2022

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.

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.

South Leeds Church of the Nazarene

Notes to the accounts continued

for the year ended 30 September 2022

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2|Grants and donations|2022|2022|2022|2021| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |£|£|£|£| |-|-|-| |LCC business grant|12,098| |HMRC Job Retention Scheme|-|-|-|7,114| |-|-|-| |19,212| |3|Staff costs and numbers|2022|2021| |£|£| |Gross salaries|64,216|58,303| |Social security costs|4,121|2,591| |Employment allowance|(4,121)|(2,591)| |Pensions|2,840|2,419| |Payroll administration charges|1,063|1,100| |Honorarium|500|500| |68,619|62,322|

----- End of picture text -----

The average number of employees during the year was 7, being an average of 3 full time equivalent (2021: 7.6, 2.8 FTE). There were no employees with emoluments above £60,000.

----- Start of picture text -----
|||| |---|---|---| |Defined contribution pension scheme|2022|2021| |£|£| |Costs of the scheme to the charity for the year|2,840|2,419| |-|-| |Amount of any contributions outstanding at the year end|

----- End of picture text -----

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |4|Restricted funds|Balance b/f|Incoming|Outgoing|Transfers|Balance c/f| |£|£|£|£|£| |-|-| |Building fund|3,592|(2,000)|1,592| |-|-| |3,592|(2,000)|1,592| |Fund name|Purpose of restriction| |Building fund|Towards building works for the church and manse. The transfer relates to a| |contribution to the cost of purchasing solar panels.|

----- End of picture text -----

South Leeds Church of the Nazarene

Notes to the accounts continued

for the year ended 30 September 2022

5 6 7 8	Tangible assets Cost At 1 October 2021 Additions At 30 September 2022 Depreciation At 1 October 2021 Charge for year At 30 September 2022 Net book value At 30 September 2022 At 30 September 2021 Debtors and prepayments Prepayments Accrued income Cash at bank and in hand Cash at bank Cash in hand Creditors and accruals Accruals Other creditors	£ - 1,256 1,256 - 419 419 837 - Computer equipment	£ 2,702 9,398 12,100 540 2,420 2,960 9,140 2,162 Fixtures and fittings	£ 487,400 - 487,400 - - - 487,400 487,400 Church	£ 152,339 - 152,339 - - - 152,339 152,339 2022 £ 1,387 1,251 2,638 2022 £ 58,788 5,546 64,334 2022 £ 1,256 - 1,256 Manse	Total £ 642,441 10,654 653,095 540 2,839 3,379 649,716 641,901 2021 £ - 1,598 1,598 2021 £ 47,750 4,239 51,989 2021 £ 1,110 - 1,110

9 Related party transactions

Trustee expenses

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

Trustee expenses

During the year 2 trustees were paid a total of £1,959 in respect of travel.

South Leeds Church of the Nazarene

Notes to the accounts continued

for the year ended 30 September 2022

9 Related party transactions continued

Trustee remuneration and benefits Trustee name David Montgomery Employed as Church Pastor Linda Boston Employee, resigned from board Aug 2021 Jenna Jones Employed as Church Pastor Livia Simon Employee Tony Musgreave Employee Geoff Alker Honorarium for Treasurer role	2022 £ 18,568 - 21,223 1,694 528 500 42,513	2021 £ 17,198 553 13,819 3,822 3,606 500 39,498

Legal authority for the payment

The legal authority for the payment is via a provision within the charity's governing document, with the condition that employed trustees are the minority of the total trustee board.

Remuneration and benefits received by key management personnel

The total employee benefits received by key management personnel were £42,013 (previous year: £37,974).

10 Operating leases

Within one year In the second to fifth years inclusive Over five years from the balance sheet date Expected future minimum lease payments over the remaining life of the lease, analysed into the period in which the commitment falls due:	2022 £ 900 - - 900	2021 £ 1,058 - - 1,058

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 2022

2022 2021 Unrestricted Unrestricted funds funds £ £ Income Grants - 12,098 Offerings 21,530 25,448 Gift Aid 3,678 2,937 Shop takings 90,063 54,773 Rents received 7,349 6,430 Donations 2,912 469 Other income 11,542 4,941 Total income 137,074 107,096 Expenditure Staffing costs 68,619 55,208 Utilities 5,442 3,453 Events expenses 973 1,127 Church domestic costs 616 321 Repairs and maintenance 3,205 8,828 Licences 668 526 Activities expenditure 6,329 4,039 Insurances 1,027 1,513 Gifts and awards 490 476 Church and office supplies 1,094 671 Visiting speakers 821 - Other admin costs 98 - Phone and internet 813 848 District and NMI budgets 4,761 7,081 Shop expenses including rent 10,359 9,795 Independent examination 1,020 1,020 Equipment and materials 332 3,557 Staff and volunteer training 148 - Donations to other organisations 1,450 2,084 Travel expenses 4,256 2,604 Refreshments 527 249 Advertising and publicity 133 53 Depreciation 2,839 540 Total expenditure 116,020 103,993 Net income / (expenditure) 21,054 3,103 Transfers between funds 2,000 - Net movement in funds 23,054 3,103 Fund balances brought forward 690,786 687,683 Fund balances carried forward 713,840 690,786	2022 Restricted funds £ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (2,000) (2,000) 3,592 1,592	2021 Restricted funds £ 7,114 - 150 - - 700 - 7,964 7,114 - - - - - - - - - - - - - - - - - - - - - - 7,114 850 850 2,742 3,592	2022 Total funds £ - 21,530 3,678 90,063 7,349 2,912 11,542 137,074 68,619 5,442 973 616 3,205 668 6,329 1,027 490 1,094 821 98 813 4,761 10,359 1,020 332 148 1,450 4,256 527 133 2,839 116,020 21,054 - 21,054 694,378 715,432	2021 Total funds £ 19,212 25,448 3,087 54,773 6,430 1,169 4,941 115,060 62,322 3,453 1,127 321 8,828 526 4,039 1,513 476 671 - - 848 7,081 9,795 1,020 3,557 - 2,084 2,604 249 53 540 111,107 3,953 - 3,953 690,425 694,378