2021-12-31-accounts - Brook Street Unitarian Chapel

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Charity Registration No. 1167088 (England and Wales)

BROOK STREET UNITARIAN CHAPEL ANNUAL REPORT AND UNAUDITED FINANCIAL

STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

2021

BROOK STREET UNITARIAN C

LEGAL AND ADMINISTRATIVE

Trustees Mr. G Birks Mr. A Eastwood Mrs. D Birks Mrs. A Clayton Mrs. B Cornes Mr. S Crowther Mrs. H Smithson Rev'd J Bradley Charity number 1167088 Principal address The Chapel Hall Adams Hill Knutsford Cheshire WA16 8DY Independent examiner Glen Brookfield Powder Systems Ltd Estuary Business Park Speke Liverpool Merseysi de L24 8RG Bankers NatWest 82 King Street Knutsford Cheshire WA16 9EG Solicitors R Ramage Copehale Coppenha ll Stafford ST18 9BW

BROOK STREET UNITARIAN C

LEGAL AND ADMINISTRATIVE

Investment advisors W H Ireland 11 St Jame's Square Manches ter M2 6WH

BROOK STREET UNITARIAN C

CONTENT

Page Trustees' Report 1 - 3 Independent examiner's report 4 Statement of financial activities 5 Statement of financial position 6 Notes to the accounts 7 - 15

BROOK STREET UNITARIAN C

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER

The trustees present their report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the chapel's constitution dated 13 May 2016, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The objectives of Brook Street Chapel are to promote religion in accordance with the principles of the General Assembly of Unitarian and Free Christians.

In doing this, the aim is to encourage the development of spiritual, ethical and religious values and the furtherance of a Christian way of life and service to others.

Brook Street Chapel furthers its charitable purposes for the public benefit by offering worship on a regular basis, together with various activities from time to time of a social or educational character. Pastoral support is given both to members and to individuals in the wider community.

The trustees have referred to the Charity Commission’s guidance on public benefit when reviewing Brook Street Chapel’s objectives and activities.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the chapel should undertake.

Achievements and performance

Brook Street Chapel continues to be developed for its historic purpose of providing both spiritual and general guidance and help within the community.

During the year ended 31 December 2021 the Chapel continued to be self-financing and to maintain the Grade I listed building built in around 1689 and the school rooms built in 1885.

Financial review

It is the policy of the chapel that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three- and six-month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the chapel’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the period.

The trustees have assessed the major risks to which the chapel is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

BROOK STREET UNITARIAN

C

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER

The main restricted funds are:

The Dickinson Benefaction, established in 1988 for the purpose of generating income for the benefits of the appointed ministers and the Woodcock Benefaction, established in 1989 for the purpose of generating income for the benefit of the appointed ministers. These two funds were amalgamated in 2021into the Minister’s Support Fund which is a restricted fund with the same purpose.

Funds totaling £1,851.00 have been drawn down from the Woodcock & Dickinson benefaction funds during the period for the benefit of the minister.

The total income from the activity of the Brook S t r e e t Unitarian Chapel was £70,287 and expenditures excluding transfers to investments were £57,742. The net investment gains in the year totaled £18,964 resulting in net incoming resources of £31,509.

The cottage continues to be rented out and this monthly rental income goes into the general funds of the Chapel.

The assets of the Brook Street Unitarian Chapel are held by trustees for the benefit of the Chapel.

The treasurer, assisted by the Chapel’s investment advisors and trustees, maintained a watching brief over the investments and authorized alterations to capitalize on the developing situation in terms of both capital and income/normal expenditure.

Statement of Ethical Investment Policy

The investment advisers have been instructed by the trustees to keep a watching brief to ensure no blatantly unethical investments are brought into the Chapel's investment portfolio.

Structure, governance and management

Brook Street Unitarian Chapel is a charitable incorporated organisation registered on 13 May 2016. The original Brook Street Chapel charity, which was an excepted charity, transferred all of its assets and liabilities to the new charity named above as at 13 September 2016. The original charity did not operate after 13

September 2016. The Chapel is a member of the General Assembly of Unitarian and Free Christian Churches and as such worships for the purposes of maintaining a congregation of dissenters free from the doctrine and teachings of the Church of England as set out in the original Trust Deed of 1694.

The trustees who served during the year were:

Mr. G Birks Mr. A Eastwood Mrs. D Birks Mrs. A Clayton Mrs. B Cornes Mr. S Crowther Mrs. H Smithson Rev'd J Bradley

Membership of the CIO is open to anyone who is interested in furthering its purpose and who, by applying for membership has indicated their agreement to become a member. The charity trustees may require applications for membership to be made in any reasonable way that they decide and if they approve an application, they must notify the applicant of their decision within 21 days.

The trustees may refuse an application for membership if they believe it is in the best interests of the CIO to do so and they must give the applicant their reasons for doing so within 21 days of the decision being taken giving the applicant the opportunity to appeal. The members should give fair consideration to any appeal but any decision to confirm refusal of the membership shall be final.

The trustees' report was approved by the Board of Trustees.

Mr. A Eastwood Trustee Dated: 10 JUNE 2022

BROOK STREET UNITARIAN C

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF BROOK STREET UNITARIAN CHAPEL

I report on the financial statements of the chapel for the year ended 31 December 2021, which are set out on pages 5 to 15.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

(i) examine the financial statements under section 145 of the 2011 Act; (ii) Follow the procedures laid down in the general Directions given by the Charity Commission under section

145(5) (b) of the 2011 Act; and

(iii) State whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

In connection with my examination, no matter has come to my attention: (a) Which gives me reasonable cause to believe that in any material respect the requirements:

(i) to keep accounting records in accordance with section 130 of the 2011 Act;

and

(ii) To prepare financial statements which accord with the accounting records and comply with the accounting requirements of the 2011 Act; have not been met or

(b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Independent Examiner

Glen Brookfield Powder Systems Ltd Estuary Business Park Liverpool L24 8RG

BROOK STREET UNITARIAN C

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

	Unrestri cted Funds	Restric ted Funds	Total 2021	Total 2020
Income From: Not es	£	£	£	£
Donations and legacies 2	18,158	500	18,658	37,282
Charitable activities 3	25,692	0	25,692	18,244
Investments 4	23,933	2,004	25,937	21,069
Total income	67,783	2,504	70,287	76,595
Expenditure on:
Raising funds 5	12,801	1,004	13,805	17,149
Charitable activities 6	35,062	6,174	41,236	43,471
Total charitable expenditure	35,062	6,174	41,236	43,471
Other 9	2,701	0	2,701	6,971
Total resources expended	50,564	7,177	57,742	67,591
Net gains/(losses) on investments 10	(18,964)	0	(18,964 )	(9,987)
Net incoming/(outgoing) resources before transfers	(1,745)	(4,674)	(6,419)	(983)
Gross transfers between funds	0	0	0	0
Net movement in funds	(1,745)	(1,745)	(6,419)	(983)
Fund balances at 1 January 2021	1,651,803	95,557	1,747,3 60	1,748,3 43
Fund balances at 31 December 2021	1,645,385	95,557	1,740,9 42	1,747,3 60

The statement of financial activities includes all gains and losses recognized in the year All income and expenditure derive from continuing activities

BROOK STREET UNITARIAN C STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

	2021	2021	2020	2020
Note s	£	£	£	£
Fixed assets
Property, plant and equipment 11		654,27 6		654,78 2
Investments 12		953,66 0		953,66 0
		1,607,9 36		1,608,4 42
Current assets
Trade and other receivables 13	1,344		6,510
Cash at bank and in hand	133,1 46		137,51 9
	134,4 90		144,02 9
Current liabilities 14	(784)		(4,411)
Net current assets		133,70 6		139,61 8
Total assets less current liabilities		1,741,6 42		1,748,0 60
Non-current liabilities 15		(700)		(700)
Net assets		1,740,9 42		1,747,3 60
Income funds
Restricted funds 16		95,557	95,557	95,557
Unrestricted funds		1,645,3 85	1,651,8 03	1,651,8 03
		1,740,9 42	1,747,3 60	1,747,3 60

BROOK STREET UNITARIAN C NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies

Charity information Brook Street Unitarian Chapel is a Charitable Incorporated Organization registered with the Charities Commission on 13 May 2016.

1.1Accounting convention

The accounts have been prepared in accordance with the chapel's constitution dated 13 May 2016, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The chapel is a Public Benefit Entity as defined by FRS 102.

The chapel has taken advantage of the provisions in the SORP for charities applying FRS 102 Update

Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the chapel. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investments and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the chapel has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

It is the policy of the trustees to transfer the value of fixed assets from restricted to unrestricted funds when the asset has been purchased from restricted fund donations and then becomes available for the general use of the chapel.

1.4 Incoming resources

Income is recognised when the chapel is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the chapel has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

BROOK STREET UNITARIAN C NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Legacies are recognised on receipt or otherwise if the chapel has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

BROOK STREET UNITARIAN C

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1 Accounting policies (Continued)

1.5 Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT and is reported as part of the expenditure to which it relates: Expenditure on raising funds includes all expenditure incurred to raise funds for charitable purposes. Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its

activities and services for its beneficiaries. It includes both costs that can be allocated directly to such

activities and those costs of an indirect nature necessary to support them.

Other costs include all expenditure which is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated between the expenditure categories of the Sofa on a basis designed to reflect the use of the resource.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 10% straight line Equipment 10% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

The Brook Street Chapel was conveyed to the previous excepted charity on 23 November 1846 at no cost and subject to a specific term that the trustees should stand possessed of the property thereafter. These assets were revalued in 1999 at £651,779 and this valuation has not been updated. Since the charity is responsible for keeping the original land and buildings in fit and useful condition the costs of doing so are written off as and when incurred.

1.7 non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of non-current assets

At each reporting end date, the chapel reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1 Accounting policies (Continued)

1.10 Financial instruments

The chapel has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12

‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the chapel's balance sheet when the chapel becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less any impairment.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as noncurrent liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

2 Donations and legacies

onations and legacies
	Unrestric ted Funds	Restric ted Funds	Total 2021	Total 2020
	£	£	£	£
Donations andgifts	18,158	500	18,65 8	37,28 2
For the year ended 31 December 2021	33,482	3,800		37,28 2
Donations and gifts
Donations and legacies	12,719	0	12,71 9	10,70 5
Grants received	3,000	500	3,500	23,40 0
Income tax recoverable	2,439	0	2,439	3,177
	18,158	500	18,65 8	37,28 2

3 Charitable Events

Charitable Events
	Unrestric ted Funds	Restric ted Funds	Total 2021	Total 2020
	£	£	£	£
Charitable rental income	11,612	0	11,612	11,585
Events and refreshment takings	4,396	0	4,396	1,493
Insurance claim re COVID losses	9,684	0	9,684	5,166
	25,692	0	25,692	18,244
For the year ended 31 December 2020	18,244	0		18,244

4 Investments

		Unrestri cted Funds	Unrestri cted Funds	Restric ted Funds	Tota l 202 1
		£		£	£
Dividends and interest receivable		23,933		2,004	25,9 37
For the year ended 31 December 2020		18,925		2,144

		Unrestric ted Funds		Restric ted Funds	Total 2
		£		£	£
		2021		2021	2021
Fundraising and publicity
Rental agents fees		0		0	0
Costs of events		431		0	431
Advertising, printing etc		427		0	427
Investment portfolio management fees		11,943		1,004	12,94 7
Fundraisingandpublicity		12,801		1,004	13,80 5
		12,801		1,004	13,80 5
For the year ended 31 December 2020
Fundraising and publicity		15,173		1,976

			2021		2020
			£		£
	Depreciation		506		506
	Light and heat		2,831		2,575
	Water rates and council tax		0		116
	Insurance		2,728		2,510
	Cleaning costs and caretaker		3,000		3,135
	Repairs and maintenance		6,174		11,65 0
	Telephone		364		369
	Ministerial costs		22,85 ~~1~~		21,32 0

	Organists		2,065		1,265
	Appeals & donations		717		25
			41,23 6		43,47 1
			41,23 6		43,47 1
	Analysis by fund
	Unrestricted funds		35,06 2		37,00 7
	Restricted funds		6,174		6,464
			41,23 6		43,47 1

7. Trustees

During the year, a trustee was paid £780 to act as a lay preacher (2020: £585). This represents £65 for each service taken and is in line with the fees paid to all lay preachers.

A trustee's husband was employed by the Chapel as Minister and he received total remuneration of

£19,068 (2020: £18,468), this remuneration was agreed by the other trustees and the related trustee was not involved in deciding the amount to be paid.

In addition, the Chapel made pension contributions on behalf of a trustee in the sum of £1,743.60 (2020:

£1,699.20) as part of his employment package and again, he was not involved in deciding the amount to be paid.

A person connected with a trustee was reimbursed a total £816.79 in respect of travelling expenses, telephone, broadband a Zoom License (2020: a trustee was reimbursed £518.08).

8 Employees

The average monthly number of employees during the year was:

		2021	2021
		Numbe r
			1
No employees were paid more than £60,000 during the year.
9. Other Conferences and courses Legal fees re Mary Glass fund Independent examination fees Subscriptions Other accountancy costs General Assembly annual contribution General Assembly delegate costs
			202 1
			£
	Conferences and courses		40
	Legal fees re Mary Glass fund		0
	Independent examination fees		0
	Subscriptions		302
	Other accountancy costs		714
	General Assembly annual contribution		1,64 5
	General Assembly delegate costs		0
			2,70 1

and buildings were valued in 1999 and this valuation has not been updated.

10. Net gains/(losses) on investments

	Unrestric ted Funds Restrict ed Funds Total 2021	Total 2020
	£ £ £	£
	2021 2021 2021	2020
Revaluation of investments	18,964 0 18,96 4	(9,98 7)
For the year ended 31 December 2020	(9,019) (968)	(9,98 7)

11. Property, Plant and Equipment

	Land & building s	Fixtur es & fttin gs	Equipm ent	Total
	£	£	£	£
Cost
At 1January2021	651,779	97,97 0	34,027	783,7 76
At 31 December 2021	651,779	97,97 0	34,027	783,7 76
Depreciation and impairment
At 1 January 2021	0	94,96 7	34,027	128,9 94
Depreciation charged in theyear	0	506	0	506
At 31 December 2021	0	95,47 3	34,027	129,5 00
Carrying amount
At 31 December 2021	651,779	2,497	0	654,2 76
At 31 December 2020	651,779	3,003	0	654,7 82

12. Fixed asset investments

asset investments
	Listed investme nts
	£
Cost or valuation
At 1 January 2021	953,660
Additions	108,808
Valuation changes
Disposals	-89,844
At 31 December 2021	972,624
Carrying amount

At 31 December 2021 972,624 At 31 December 2020 953,660

13. Trade and Other Receivables

de and Other Receivables
	2021	2020
Amounts falling due within oneyear:	£	£
Other receivables	0	5,166
Prepayments and accrued income	1,344	1,344
	1,344	6,510

14. Current Liabilities

	2021	2020
	£	£
Accruals and deferred income	784	4,411

15. Non-Current liabilities

	2021	2020
	£	£
Other payables	700.00	700.0 0

16. Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

	Movement in Funds
	Balance at 1 January 2021 Incomin g resourc es Resour ces expend ed Transf ers Revaluati ons, gains and losses Balance at 31 December 2021
	£ £ £ £ £ £
Dickinson Benefaction	75,292 0 0 (75,29 2) 0 0
Woodcock Benefaction	20,265 0 0 (20,26 5) 0 0
Minister’s Support Fund	0 0 0 95,557 0 95,557
	95,557 0 0 0 0 95,557

The Dickinson Benefaction was established in 1988 for the purpose of generating income for the benefits of the appointed ministers.

The Woodcock Benefaction was established in 1989 for the purpose of generating income for the benefit of the appointed ministers.

These funds were amalgamated in 2021 into the Minister’s Support Fund, still a restricted fund with the same purpose.

1 Analysis of net 7 assets between funds

1 7 Analysis of net assets between funds
	Unrestricted Funds	Restricte d Funds	Total 2021	Total 2020 £ 2020 654,782 953,660 139,618 (700) 1,747,360
	£	£	£
	2021	2021	2021
Fund balances at 31 December 2021 are represented by:
Property, plant and equipment	654,276	-	654,276
Investments	858,103	95,557	953,660
Current assets/(liabilities)	129,936	-	129,936
Long term liabilities	(700)	-	(700)

	1,641,615	95,557	1,737,172

18 Related party transactions

There were no disclosable related party transactions during the year (2021 - none) other than those disclosed in note 7.