## South Bank Sanctuary Church of the Nazarene
Charity number 1161121
## Annual Report and Financial Statements
for the year ended 30 September 2023
South Bank Sanctuary Church of the Nazarene
Annual Report and Financial Statements for the year ended 30 September 2023
|**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**
1
## South Bank Sanctuary Church of the Nazarene
## Trustees' report for the year ended 30 September 2023
## **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** Chair of trustees Treasurer Secretary Missions Leader
Jenna Jones Geoff Alker David Montgomery Karen Alker Livia Simon Carole Rayner Alison Montgomery Afomia Tsegai
Resigned 22 August 2023
## **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 as amended on 16 March 2023. 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.
2
## South Bank Sanctuary Church of the Nazarene
## Trustees' report (continued) for the year ended 30 September 2023
## **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**
We have conducted worship services, bible studies, and prayer meetings weekly.
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 Café provides a safe environment where people can come and receive low cost meals and drinks. It is also a warm space over the winter. The leaders signpost individuals to other agencies for support.
We run 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 changed our foodbank into a food pantry charging £3 for 15 items and approximately 100 people a week receive support through this.
This year we supported another charity called Zarach which provides beds for children.
## **Financial review**
The net expenditure for the year was £8,928, all relating to unrestricted funds.
3
## South Bank Sanctuary Church of the Nazarene
## Trustees' report (continued) for the year ended 30 September 2023
## **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 3 to 6 months operating costs.
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 £58,035.
Approved by the board of trustees on 23/07/2024
Jenna Jones (Trustee)
4
## South Bank Sanctuary Church of the Nazarene
## Independent examiner's report to the trustees of South Bank Sanctuary 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 2023, 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
23/07/2024
## **West Yorkshire Community Accountancy Service CIO**
Stringer House 34 Lupton Street Leeds LS10 2QW
5
## South Bank Sanctuary Church of the Nazarene
## Statement of Financial Activities
## (including summary income and expenditure account) for the year ended 30 September 2023
|Notes
2023
Unrestricted
funds
£
**Income from:**
Grants
(2)
-
Offerings
17,001
Gift Aid
2,231
Shop takings
115,084
Rents received
10,580
Donations
2,806
Other income
5,554
**Total income**
153,256
**Expenditure on:**
Staffing costs
(3)
73,846
Utilities
1,657
Events expenses
2,423
Church domestic costs
1,312
Repairs and maintenance
11,159
Licences
300
Activities expenditure
5,037
Insurances
2,072
Gifts and awards
1,325
Church and office supplies
967
Visiting speakers
1,059
Other admin costs
1,823
Phone and internet
813
District and NMI budgets
2,776
Shop expenses including rent
44,870
Independent examination
1,070
Equipment and materials
237
Staff and volunteer training
72
Donations to other organisations
1,776
Travel expenses
3,331
Refreshments
501
Advertising and publicity
919
Depreciation
2,839
**Total expenditure**
162,184
**Net income / (expenditure)**
(8,928)
**Fund balances brought forward**
713,840
**Fund balances carried forward**
(4)
704,912|2023
Restricted
funds
£
2,150
-
-
-
-
-
-
2,150
-
1,750
-
-
-
-
400
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,150
-
1,592
1,592|2023
Total
funds
£
2,150
17,001
2,231
115,084
10,580
2,806
5,554
155,406
73,846
3,407
2,423
1,312
11,159
300
5,437
2,072
1,325
967
1,059
1,823
813
2,776
44,870
1,070
237
72
1,776
3,331
501
919
2,839
164,334
(8,928)
715,432
706,504|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
694,378
715,432|
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
6
## South Bank Sanctuary Church of the Nazarene
## Balance sheet
|as at 30 September 2023
2023
Unrestricted
£
**Fixed assets**
Tangible assets
(5)
646,877
**Total fixed assets**
646,877
**Current assets**
Debtors and prepayments
(6)
2,754
Cash at bank and in hand
(7)
56,351
**Total current assets**
59,105
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(8)
1,070
**Total current liabilities**
1,070
**Net current assets / (liabilities)**
58,035
**Net assets**
704,912
**Funds**
Unrestricted funds
704,912
Restricted funds
-
**Total funds**
704,912|2023
Restricted
£
-
-
-
1,592
1,592
-
-
1,592
1,592
-
1,592
1,592|2023
Total
£
646,877
646,877
2,754
57,943
60,697
1,070
1,070
59,627
706,504
704,912
1,592
706,504|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|
|---|---|---|---|
The financial statements were approved by the board of trustees on 23/07/2024
Jenna Jones (Trustee)
7
## South Bank Sanctuary Church of the Nazarene
## Notes to the accounts
for the year ended 30 September 2023
## **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, if 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
8
## South Bank Sanctuary Church of the Nazarene
## Notes to the accounts
for the year ended 30 September 2023
## **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.
9
## South Bank Sanctuary Church of the Nazarene
## Notes to the accounts continued
## for the year ended 30 September 2023
|**2 Grants and donations**
Hamara
Voluntary Action Leeds
**3 Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions
Payroll administration charges
Honorarium|2023
Unrestricted
funds
£
-
-
-|2023
Restricted
funds
£
400
1,750
2,150|2023
Total
funds
£
400
1,750
2,150
2023
£
70,045
4,214
(4,214)
2,877
924
-
73,846|2022
Total
funds
£
-
-
-
2022
£
64,216
4,121
(4,121)
2,840
1,063
500
68,619|
|---|---|---|---|---|
The average number of employees during the year was 6.2, being an average of 2.4 full time equivalent (2022: 7, 3 FTE). There were no employees with emoluments above £60,000.
|**Defined contribution pension scheme**
Costs of the scheme to the charity for the year
**4 Restricted funds**
Balance b/f
£
Building fund
1,592
Hamara
-
Voluntary Action Leeds
-
1,592|Incoming
£
-
400
1,750
2,150|Outgoing
£
-
400
1,750
2,150|2023
£
2,877
Transfers
£
-
-
-
-|2022
£
2,840
Balance c/f
£
1,592
-
-
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. Hamara Towards providing food and refreshments.
Hamara Voluntary Action Leeds
Warm spaces grant funding towards additional costs related to providing an inclusive warm space.
10
## South Bank Sanctuary Church of the Nazarene
## Notes to the accounts continued
## for the year ended 30 September 2023
|**5 **
**6 **
**7 **
**8 **|**Tangible assets**
**Cost**
At 1 October 2022
Additions
At 30 September 2023
**Depreciation**
At 1 October 2022
Charge for year
At 30 September 2023
**Net book value**
At 30 September 2023
At 30 September 2022
**Debtors and prepayments**
Debtors
Prepayments
Accrued income
**Cash at bank and in hand**
Cash at bank
Cash in hand
**Creditors and accruals**
Accruals|£
1,256
-
1,256
419
419
838
418
837
Computer
equipment|£
12,100
-
12,100
2,960
2,420
5,380
6,720
9,140
Fixtures
and fittings|£
487,400
-
487,400
-
-
-
487,400
487,400
Church|£
152,339
-
152,339
-
-
-
152,339
152,339
2023
£
-
1,373
1,381
2,754
2023
£
50,591
7,352
57,943
2023
£
1,070
1,070
Manse|Total
£
653,095
-
653,095
3,379
2,839
6,218
646,877
649,716
2022
£
-
1,387
1,251
2,638
2022
£
58,788
5,546
64,334
2022
£
1,256
1,256|
|---|---|---|---|---|---|---|
11
## South Bank Sanctuary Church of the Nazarene
## Notes to the accounts continued
## for the year ended 30 September 2023
## **9 Related party transactions**
## **Trustee expenses**
During the year 2 trustees were paid a total of £2,673 in respect of travel (previous year: 2 trustees and £1,959 in respect of travel).
## **Trustee remuneration and benefits**
No trustee received any remuneration or benefit during this or the previous year.
|**Details of remuneration and benefits**
**Trustee name**
Jenna Jones
Employed as Church Pastor
David Montgomery
Employed as Church Pastor|2023
£
26,371
19,136
45,507|2022
£
22,857
19,826
42,683|
|---|---|---|
## **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 £45,507 (previous year: £44,905).
## **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:|2023
£
5,250
6,125
-
11,375|2022
£
900
-
-
900|
|---|---|---|
12
## South Bank Sanctuary 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 2023
|2023
2022
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Grants
-
-
Offerings
17,001
21,530
Gift Aid
2,231
3,678
Shop takings
115,084
90,063
Rents received
10,580
7,349
Donations
2,806
2,912
Other income
5,554
11,542
**Total income**
153,256
137,074
**Expenditure**
Staffing costs
73,846
68,619
Utilities
1,657
5,442
Events expenses
2,423
973
Church domestic costs
1,312
616
Repairs and maintenance
11,159
3,205
Licences
300
668
Activities expenditure
5,037
6,329
Insurances
2,072
1,027
Gifts and awards
1,325
490
Church and office supplies
967
1,094
Visiting speakers
1,059
821
Other admin costs
1,823
98
Phone and internet
813
813
District and NMI budgets
2,776
4,761
Shop expenses including rent
44,870
10,359
Independent examination
1,070
1,020
Equipment and materials
237
332
Staff and volunteer training
72
148
Donations to other organisations
1,776
1,450
Travel expenses
3,331
4,256
Refreshments
501
527
Advertising and publicity
919
133
Depreciation
2,839
2,839
**Total expenditure**
162,184
116,020
**Net income / (expenditure)**
(8,928)
21,054
**Transfers between funds**
-
2,000
**Net movement in funds**
(8,928)
23,054
**Fund balances brought forward**
713,840
690,786
**Fund balances carried forward**
704,912
713,840|2023
Restricted
funds
£
2,150
-
-
-
-
-
-
2,150
-
1,750
-
-
-
-
400
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,150
-
-
-
1,592
1,592|2022
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,000)
(2,000)
3,592
1,592|2023
Total
funds
£
2,150
17,001
2,231
115,084
10,580
2,806
5,554
155,406
73,846
3,407
2,423
1,312
11,159
300
5,437
2,072
1,325
967
1,059
1,823
813
2,776
44,870
1,070
237
72
1,776
3,331
501
919
2,839
164,334
(8,928)
-
(8,928)
715,432
706,504|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|
|---|---|---|---|---|
13