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2020-12-31-accounts

Minister’s Report - MEC 2021

2020 and 2021 has been a very unusual and very challenging time for us as a congregation. The various restrictions that have been in place have meant that we, along with all other churches in the UK, have had to think creatively and strategically in how we have conducted services and tried to keep people connected.

Since our last AGM in October, which had to be pushed back due to the pandemic, the following has taken place:

Godward –

Inward –

Outward (community) -

Leadership -

Strategic Planning –

On a personal note, it has been quite a tough year, but I am grateful to the Lord for holding me during this time and want to say a big thank you to all of you for your love, prayers and support. It has been greatly appreciated!

A very big thank you to everyone who has contributed this last year. Special thanks to the elders for your dedication and devotion and for serving so faithfully and selflessly in very unprecedented and difficult circumstances.

Last but not least, a big thank you to each and every one of you who make MEC so special. Without you, our church would not be the church that it is! So let’s continue to shine and grow together to His glory in the weeks and months ahead.

Charity Registratlon No. 11f8558 Company Reglstratlon No. CE014236 (England and Walesl MALVERN EVANGELICAL CHURCH ANNUAL REPORT AND UNAUDITED FINANCiAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2020

MALVERN EVANGELICAL CHURCH LEGAL AND ADMINISTRATIVE INFORMATION Trustoes L8slon Blatkbum Iminisler, Chairl Steve Alkins John Jacob Eldor8 Leston Blackburn Iminislerl Steve Alkins John JacDb Chris Bray Sean Brodie Tiistan fvlitchell D•aeons George Chakko.Georg& (Treasurer) M811 Greenha￿h David Niblett Gill Purdham18ppoinied 23 Oclob8r 20191 Charlty number 1178558 Principal addr•ss 210 Pick8rsl•gh Road Malvem Worceslershlre WR14 2QX A¢¢ountants Kendall W8dley LLP Granta Lodge 71 Graham Road Mafvern orcesiershlre R14 2JS Bankèrs HSBC Bank pl¢ 1 ChurLh Slrrel MBfvern woreèslofsh.re V¥R14 2AB

MALVERN EVANGELICAL CHURCH CONTENTS Pagè Deacons, report Indepervjenl examiner'5 report Statement of f￿￿nCEal acli¥Ylios Balancè sheet Notes lo the fin8nchal slalem¢r)ls 9-24

MALVERN EVANGELICAL CHURCH DEACONS. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The Deacon3 Pmsenl their rePC￿ and accoun15 for the year ended 31 December 2020. The accoun15 hav8 b8fyn proparp4 in aG￿rdanCe with the accounllng p￿IdeS set out in note 1 to the èccounts and comply with the church's Rulgs and con51ilvtion. the Charilias Acl 2011 and "Accounting and Rèporting by Charllies-. Slaiement ol Recommpnded Praclic8 applicab￿ lo charities preparing thgir accounts in 8ccord8nce Mlh the Finanual Rep(Ktlng Standard 8pplicable in the UK and Republic of Ireland IFRS 1021" leffeclve 1 January 20191 Objeetlves and aetlvltlès Summary ol the objects ol the charity are sel oui in its goveming do¢umenl'. The purposes of the chuich shall be.. 1.The advancement of th8 Christian failh in aecofdan¢e wlth thè Basls ol FaSlh primarlly bul not exclusively wiihin Malvern.. and 2. Such other charltable purposes as shall, In the opinlon of the E￿er$ ILWther Ihe wc*k of Ihe Church. Publi¢ Benefit The ma1n public ￿n￿lI1 th81 the charily provldes is the advancoThnt of the Evangalical Christian Fallh wllhin the Malvern areè, whi¢h is the primary objective ol the charity. AnyDne Is welcome lo worship at th& thurch and any priv8le benellls received by Ihe Doacons is considered lo be incidenlal lo the work of the church. The charily also supports the rellef gf poverty by way of donat￿n￿ lo peopte in neeol and people éirectw working to rèlievè people poverly. Summary of the maln actlvltles undertaken for lh• publle b•n•fit Our Ninistry M8gazinè' 1$ produced $8paralely includes reFQrts ol our adivltie$. Statutory de¢laration Tho Trustaès consider the acts"vits8s of MEC (with règard to the guldance issued èy lh8 Charfly Commlssion on public benefit) lo be ol real value. not jusl to the immediate neighbourhwd bul much furI￿r afitsld and to all age gioups. Giving to Mission MEC allO￿leS 10% of income lo support missions bolh in the UK and overseas, this budget is revRwod apnually. Contribution madg by voluntegrs MEC is run by volunteers oivlng freoly of Ihelr tima and effort, we 8eo this 8s p8rt of our worship and senrtce to God. The Deacons have paid due r¢yaril Ir• guidance issued by the Charity Commission in deciding what activities Ihe ehurch should undertake. The church provides a place of worship lor its members. The church is responsible for maintaining ils fabric and environs, lor organising and arranging religious seTViCe5, SUPF)Orting its Pastor and staff and providing pastoral care. M8king donations io charitable organisations is arb tsxpr¢&sioll of ils r8SPQnsibililies. The grant making policy is established by the chur¢h which certifles and makos grants lo charitablè organisalions demonslratiro similar objectives and oulreach as the church. Grants allocated during the year are shown ￿thIn the 8ccounls.

MALVERN EVANGELICAL CHURCH DEACONS, REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 A¢hl•vement$ and pèrforman¢e In the Dpinion of Ihe Deacons. the church has achieved its staled objects and acliviliès wilhtti the year. P￿ase se$ ovr'Mlni5ty Magazine. for rèports on whal we h8ve achieved togelher. MEC launched an iniiiative to start planning lo Exiend The Tenl by ie-buildlng our exlslbng building. For this inilialive, Ihe Treasury team introduced an Accommodation Fund. Buildin9 Commen¢￿ during Ihe year and was Eompleled in Spiing 2016. This project was deta￿ed in prewous accounts. Flnancial rgview The stjrplus for Iho year amounted lo £24,578 12D19'. deficil £8,976). The unrègtfietèd fund reservès al tho year end were £97,08812Q19..£87,58Jfi. At year end the restricled fund reserves were ￿.394{2019 £6701. DeS￿nated funds 8t the year amounted to £617.140 12019". £603.7891, these funds represent those Ltlilised sn the new chDrch building which will bo orode(J by depreciation over lime. The funds are adequalo and av8it8blg ￿ fulfil Ihe obligations of the organisation. It is Ihe policy of the church that unrestricted funds wh￿h have not boen designated foy a specific use should be maintained al a level eqviv3lenl lo between three and six month's exp¢ndtluro. Tho Tru51oos Gonsider that re8er4es al this level will ensure Ihal, in Ihe event ol a significant drop In funding. they will be ab￿ to continue the church's current activities while consideration is given lo ways in which ¥doSitiDnal funds may raised_ Thislgvel of re5etve5 h8s been maintained throughout the year. Rl¥k •$ses¥ment The Dtracons have a8ses3ed the major risks to which the church is expos￿, and are satisf*¢J Ihkl sysl8ms are ￿7 pla￿ to mitigate exposura to lh• mBjor risks.

MALVERN EVANGELICAL CHURCH DEACONS, REPORT ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Structure, gov8rnance and management The church was esiablished by a chafjlable Iru51 deed on 13 May 1975, a5 revised in the church constilLJtion in 2001. On 9 SepleTnbei 2009 rhe trusi deed byas updaled and replaced by a new constitution. The church r8gistored with tho Charity CLsmmission on 4 Decembei 2009,11 registered as a CIO on 30th May 2018, the asse15 and liabilities of tho Ofiginal charity Inumber 11331251 w@re Iranslerred to Ihè CIO on 1 Janu8ry 2019. The Trustees and Deacons who are currently serving ar& 8$ on lh9 I￿81 and adminislralive detai15 pagè. Trustee selection Only cuirenlly serving Elders may be Managing Trustees, however, nol all Elders we required lo be Managin9 Trustees. The Elders byill decide who from their number should be Managing Trustees. The church will ratify this at ChurGh Business Meeting by sectet ballot and requires a majority of those presenl 8nd voting. The El(J¢rs shall add lo Ih8ir number from lime lo time. as shall be seen good tD them, from amongst thè number8 ol the church, aiming lo reach un8nimily Trn their decision. Any such intention shall be indicated to the members glviro nollco on the two Lord's days pr￿[ lo a chuiGh meeting. and prayerful Gommenl and urnily Sought Irom the mombors in the reLognilion of the new E￿or. Tho final fosponsibility for the appointrnenl of an Elder shall. however, resl with Ihe existing Elders. When appoinled a new Elder shall bo separated to Iho work by the existing Elders al a a service on the next convenient Lo)rd's Day. The New Teslamenl makes a di511nctJon between Ihose Elders who only dlrecl the off8irs of the ehLJr¢h and Ih08e whose w(¥k is preaching 8nd 1è8ching. There is no Suggesllon Ih8t the number of leachlng Eldors in a gSven local church is limiled, shO￿ld any Elder cease lo meet Ihe gualilicalions lor ihis offiLe Ihal Elder will be requirod lo relinquish it by the remaining Elders. Any Elder wishing to lerminale their position as an Elder shall inform the rest of the E￿ershIP. giving 8$ much notice as posstble according to the prevailing circumsi8n¢es and prvviding ieasons for their dècision where possiblè_ The Pastor shall be a Teaching Elder whDse aplitude lo receive linal responsibilily lor Ihe pastoral oversight of the church and the ministry of Ihe word has been recognised by the Elders, supported by Ihe membetship. To him particularly. Ihg Gospel is committed as a solèmn charge_ He is to prèach thè Word, bè prepared in season and out ol season. correct. febuke, and encourage wilh great patience and ￿rel(lI Inslruclion. That hè might fully perform this work he is norThally to be maintained wholly by the church he serves. The Pa¥lorfs aulhorily over above that of other Elders Stems from the charge committed lo him by God. Thus he h¥$ from God the right and duty to encourage and rebuke with all authority, lèlling no one despise him. He is neverlheless lo do these things with greal patience as belils a sheperd ol Ihe flock and wilh caref￿1 leaching li,9. basing his exhortaliorbs on the pure Word ol Godl. seekin9 only the glcry ol the Triune God. As the senior Teachlng Elcsor the Pastor has tho rlght to proslde over all oiganisalions conrieGled wilh the church. The Pastor shall be in lull accDrd with the Statement ol Doctrine and the Rules ol Practlce_ The Nomination ol the P8sl¢r shall bg made by tfvo Elders, giving due consideralion lo tha mind of the church and the invitalion io the Pastorale shall be by a supporting vole ol three quarters of the church membership present and voling, though compble unanimlly shall be sought, The votg shall be taken at a GhuTch meeting specially convened for Ihis purpose, The Paslor shall give th6 church al l&asl three months nolice of his desirè lo lermin81e hls ministry in the church. The church on the other hand shall give the Pastor at leasl six months noticè lo their desire to terminalts hi$ mini$lry in the church.

MALVERN EVANGELICAL CHURCH DEACONS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 The word Deacon literally me8ns 8eN8nt and is so liansl2led many limes in ScTlPturtr. 1115 also used however lo denote an offlce in the church. The lunclion of the Deacons Is to relkve the Elders ol those nece55ary dUt￿S In thè lil& and conduct of the church Ihal are lemporal rather Ihafi spiritual in naluro. In these duties they shall be responsible ttr the Elders. The D8acons may be men or womgn and shall be members ol the church %Yho are "known lo be full ol the spiril and wisdom" (Acl 6 v$ 31. The number of Deacons shall be appropriate lo the current needs of the church as delerminecl by Ihe Elders. Deacons shall normally t)e appointed at thè Annual Gèneral bAèèling ol the ¢hur¢h. bul occasionally il may be ne¢6ssary to appoint extra Deacons at a normal church meeting. When li is ret￿nISed by Ihe E￿er$ ih21 Ihe appointment of further Deacons is ne￿Ssary, members will be invited to make nominalions Irom the rhurctt m8mber5hip to the Pastor, or an Ekser if there is no Pastor. al lea51 fourteen ijays before the meeling. The pastor, or Elder, shèll obtain Ihg consent ol Ihe nominèè bèfore that person can be pul I0￿8rd for èlèction. Al the meetiw th& nominalion must Ihen be seconded and receive at least a thirds majority vole ol IhE members present and voling before the appoinlment can be confirmed by the Elders. A Deacon shall relire after a three year tenure of office bul 15 eligible lor re-electK>n. 118 Deacon was apkKiinled at a mid-poinl belween Annual Ggrberal M881ings. their time c>f S8NiC8 shall bé from thé AGM following IhÈir apwinlmènl. If the Elders are of the inion Ihat a Deacon shall relinquish the Dfficg before the end ol Iheir term Ihèy sh811 inform thè Dea¢￿ and tho church ol the lerminalion of their appointment. P8rsons se8king m8mb8rship shall arrang8. aft8r roadlng a copy ol tha Church ConslilLJllon. lo be visileLI by al leBsl two Elders or other members nominalfrd by the Elders to gain satisfaction of their nèw birth. ChrTrsts"an ehAr8cler and consistent lil(, record their inlenlion lo abidg by the Rule5 of Practice ol the Constilution and Ilir Who￿hearted assent to the church's Slotomonl of Doclrine. Membership is then confirmed by a VL>le by the Elders and 8cceplance is acknowledged at tho nexi convenionl Lord's Table or al a Lord's Day sefvice. Inductlon of trustees inducllon a Trustee receives a copy of the Church rules 09109109 v&rsion 2, Ihfy Constilulion. balesl annual financial stalemenls and Guidancè on Ihe Role of 8 Trustee 8$ issued by the Charity Commission. The Trustee5 are responsible for selling rerThJneralion lor those staff paid by Ihe ¢hurch. Policl•s Policios aro adopted by the Church to ensure compliance with Child Protection and Environmental l$sues. Futur¥ plans The D8acon3' report was aFvroved by the Board of Deacons. George Chakko-George Deacon Dated: 11 May 2021

MALVERN EVANGELICAL CHURCH INDEPENDENT EXAMINER'S REPORT TO THE DEACONS OF MALVERN EVANGELICAL CHURCH I report to the Deacons on my exBminBtion ol Ihe financial statemenls of Malvern EvangeliGql Church Ilhg churchl lor the year ende(1310ecember 2020. Ro$pon$lbllltl8$ and basls of report As the Deacons of Ihe church you are responslble for the piep8ralion of the fin8n¢lal glalomtrn15 111 accordance with the requiremenls of the Gharilies A¢1 2011 Ilhe 2Q111 Acll. I report in iespect ol my examination of the church's financièl slalttmenls earned oul under section 145 01 the 2011 Ael. carrying out my examinalion I hove lollowed Bll the applicable DireclKins given by the Chartty CommSssion under section 14515llbl ol Ihe 2011 Acl. Ind4￿￿￿•￿1 gxamin•r'$ statem•nl Your #ilenlion is drawn lo Ihe lacl Ihal the ¢hafily has preparod financlal slalorn8nls In aCCordar￿@ with AcccJnling and Reporting by Charilies preparing their accounls in accordance wilh the Financial Reporting Standard applic8ble in the UK and Republic ol Ireland IFRS 1021 in p￿1¢￿ence lo thg Ac¢ounling and Reporting by Charities.. Si8lemenl of Recommended Praclice issued on 1 April 2005 which is rglgrrod lo in the exi8nt règul8ts.ons t)ul h8s now wilhdrawn. l understand that Ihi5 has been done in order lor financial stalements lo provide a Ifue and fair v￿W in ac¢ordance wilh Generally Accèpted A¢¢ounllng Pr￿liCe ellective for reporting Kriods beginnlng on or afièr 1 January 2015. I have completed my ex8min8tson. I confimi Ihal w marters have come to my attent￿n in conne¢tion with the ex8minalion givlng me cause lo belleve th81 in any malerial regpecl.. accountin9 records were not kept in respect of the church as required by section 130 of the 2011 AGI- or the linancial stalements do not acGord with those records,, or the financial stalemenls do nol comply with Ihe applbcable reouirements coneerning the form and conlenl of accounts sel out in the Charilies (Accounts and Reports) Regulations 2008 other Ihan any requiremenl that the aGcoun15 uive 8 true lair view which is not 8 matter eon51dered as part of an Ind8p&ndènl èxamination. I have no concerns and have come across no othef matleys in connection with the examination lo) wh￿h attention uld be diawn in this teport in order lo enable a proper underst8nding ol the fin8nc￿l siatements eth Needham ACA CTA IVAT Kendall Wadley LLP Granta Lodge 71 Graham Road M81vem Worcestershire WR14 2JS D8led.' 11 May 2021

MALVERN EVANGELICAL CHURCH STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 CuThent flnanclal yoar Unro•trirtod Unreslrictgd Restricted funds funds funds gèn•ral d¥slgnal•d 2020 2020 Total Toi81 2020 2020 2019 Notes Donations and legacies Oihbr activitios Invest￿￿15 114.786 375 9,863 8,215 132,864 37S 11S,319 4,871 12 Total Income 115.167 9.863 8,215 133,245 120.202 Charitable aclivitios 91,729 77 16,861 108.667 129,178 Not incominglloutgoingl resources before transfers 23.438 9,786 18,8461 24.578 18.9761 GroBS transl8TS ba￿en lunds 11 113,9351 3,565 10,370 Net incomollexpenditure) for the yearl Ngt Inovgmgnt in funds 9,503 13,351 1.724 24,578 18,9761 Fund bal8n¢e$ at 1 January 2020 87.585 603,789 670 692.044 701,020 Fund balJnc*s at 31 Dgc•mbgr 2020 97,088 617,140 2.391 716,622 692,044 stal•m•nl of financial 8clivitie6 include5 811 gains and losses recLyJnised in the year. All income and expendilure derive from conlinuing activitiès_

MALVERN EVANGELICAL CHURCH STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 Prlor flnancial y•ar- combined Unrestrlcted Unrestdcted Restrlcted funds funds fund genèral dèslgnated 2019 2019 Totsl 2019 2019 Notts Donations and lega¢ies Olhèr Aellvil*$ Investments 96,377 4,871 12 10.008 6.934 115,319 4.871 12 Total incom• 101.260 10,008 8,934 120.202 Charitable aclivilie$ 106,588 611 19.979 129,178 Nel Incomlngl{outgolngl r•sourc•B bofor• tr•nsf•ri 17,3281 9.397 111,0451 8.9761 Gro$$ Iransfers between lunds 11 112,0721 1.342 10,730 N•t Ineom•ll•xpèndltur•l for tho y•Arl Net movthènt In funds 119.4001 10,739 13151 18.9761 Fund balances al 1 January 2019 106,985 593,050 985 701.020 Fund balan¢•$ at 31 Do¢èmbor 2019 87,585 603.789 670 692,044 Th& stalemenl of financial acts"vitses includes all gains 8nd losses recognised in the year. I Income and expendilure derSve Irom conliniilng acllvllles.

MALVERN EVANGELICAL CHURCH BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2019 Combln•d Not•s Fixed assets T8ngiblÈ assèts Current assets Debtors Cash at bank and in hand 12 972,460 995.5T5 13 15,356 12.478 4,146 1,764 27,834 5,910 Credltors.. amounts falllng due wlthln one year 14 127.9511 127,8581 Nel currènl liabilits.es 121,9481 Total assets less current Ilabllltles 972,343 973,627 Crèdrtofs: amounts falling due aft•r more than onè year 15 1255.7211 1281,$831 Net assets 716.622 692.044 Income funds Re51ficled funds Unrestricted funds Designatèd lunds Gener81 unreslricled lunds 17 2.394 670 18 617,140 97,088 6Q3.789 87.58$ 714,228 691,374 716,622 692.044 The financ1￿ tslemenls were approved by the Deacon8 ￿ 11 May 2021 George Chakko.George Trg•sur•r

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Aecounllng polleles EntSty Infom)atlon Malvein Evangelie81 Church Is g Chorilable In¢orporalgd OiganisalK>n registered the Charity Commission In May 2D18_ Tho principal addross 1$ 210 Pickcrsloigh Road, Malvorn, Wor¢oslershlre. WR14 2QX. Ba$18 ol prèp•r8tlon Malvern Evangelical Church was a registered charlty 113125. a new Charilable Incorptrraled Organisxlion was 8stablish•d and is register&d wllh the Charity Commission undèr number 1178558. All thè 8ssel$ 8nd liabilities of the the lomier charity weie transferred to Ihe new organisation on 1 January 2019. These financial 51alemenls ale prepared ￿ accordance with section 27 01 Ihe Slatemenl ol Recommended Practice. merger accounting, The a5sels. liabilities and funds of the two entiti&s have been a9gregaled, the resulis for Ihe y8ar show Ihè combin8d position lor Ihè whole accounling pèriod and compar8￿"¥￿5 relale lo the charity 1133125 now removed from the Register. 1.1 Accgunllno con¥onllon The accounts have been prepared in accord#Ke with the church's Rule¥ and Conslilution. the Charities Act 2D11 and "Accounting and ReporlSng by Charilles.. Slatom¢nt of Rocommcnded Practice applicable to ¢h•riliès préparing their aceounls in accordance wilh the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021" leff¢clive 1 January 20191. The church 15 a Public B6nfjfil Entity as deflned by FRS 102. The church has taken advantagé Df the provSsions In the SORP lor ¢hrit6es applylng FRS 102 Update Bulletin 1 not to prepare a Stalemenl ol Cash Fl(yNs. The flnancbal stslemenls have departed from the CharS1ies IAccounls and Reports) Regulallons 2008 o)nly to Ihe exlenl required to Provide a truè and lair view. This departure has Involved fdlowing the Slalemenl ol Recommended Practice for charities applying FRS 102 rather than the verskin ol Ihe Si8ttsm8nl ol ReGomrnended Practice which is referred lo in the RegulalioTrs bul which has since been withdrawn. The financial statements ar8 preparètt in stèrling, wh￿h is thè lunctiortral currency of thè church. Monetary amounts in these financial 51atem8n15 are rounded ID the nearest £. The financia1 $18lemenls have been prepared undgr tho hislorithl ¢osl ¢onvgntion. The principal •ccounling policies adtplèd are s&1 oul below. 1.2 Golng concern Al the time ol approving the financi41 statements, the Oeaeons have a reastsnable $xpedation thal the church has 8dequ8le resources lo continu& in operational existence lor Ihe foreseeable luluie. ThLJS Ihe Deacons ¢ontlnue to adopt the going concern basis of accounting in preparing the firnanclal statements, 1.3 Charltable funds Unrèslricted funds arè availab￿ for us8 at discrelion ol the De8¢0ns In further8nce ol Ihelr chadtable otyectives. All income received for 8 specific purposè. and expenditure relatiThJ lo such purposes. k% assiyned lo the rèl8v8nl rèstrlctèd fund. Endownnl fu￿8 are subject lo specific conditions by donors that the Capllal musl be malntained by the church.

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEM8ER 2020 A¢¢ountlng poll¢lès IContlnu•dl 1.4 Incomlng r•sourc•s Income is recognised when Ihe church is legally enlilled lo il 8flpT any pprforrnance condillons have booll met, thè amounls can meas[k￿d reliably, and ll is probable iha¢ income will bo r&ceived. Cash donations are reeognised on receipl. Other donalions are rewgni5ed Once the thurch has been nolifieé of the donation, unless performance conditions requi￿ deferr81 ol the amounl. Income lax reeovÈrablè in rèlation lo donAlions rècèlved undèr Gift ￿"￿ or dèeds ol covenanl Is recognised 81 the ISM ol the donation. Legacies are rertsgnised on receipl or olhepwise il the ¢hurrh has bggn notified ol an impending dislribulion, th& 8mounl is known. ￿c￿p1 is expecled. 11 Ihe amwnt ks not known, the legacy is Iraalgd 8> 8 eonlingenl assei. All other income is recognised ￿en il 18 receNed. 1.5 R•soure•s expèndèd Li&billlie5 are recognL8ed for the amounts that the charily snlKipales11 ￿11 have lo pay lo sellle a debt or thè amount thal it has received in advance as payment for sèrvi¢ès il h8$ to promde. Expenditure on charitsble activilies includes Ihè costs assou8ted with the aclivititrs undoriaken lo further the purposes ol the charity and their gssocialed support costs. other expènditure rèpresenls those ilèms ml falling Into any other heading. Irrecoverable VAT is char9ed as a cost againsl Ihe activtty for which Ihe exF*ndiltsre was incurred. Support C0515 are Ihose functions that assist the work ol the charity but do not directly undertake charii2b5e adivilies. Support costs include back office costs, finance, personnel. payroll and governance costs which support Ihe programmes and activities Lbndertakèn The support costs are treated as core running cos15 01 the charity. 1.6 Tangible fixed a$$et5 Tangible fixed asse15 are inlllally rrbeasured al cost and subsequently measured at cost or valuation. net ol depieGialion and any impairment losses. Depreelation Is re¢ognised so Bs lo wrile off Ihe ¢osl ¢r valuation of assets bss Ihgir residual valuos ovgr their useful lives on the followSng bases.. Land and buililiThJs Property Improvements Comwler equipment Fixlures, fittings & equymenl Buildings over 50 years 5 years slraighl Ilne 33Yo on net t)ook value 330A ort ntst book va￿e and 5 yuears straight line The gain or k$$ arising on the ¢Ji5posal ol an #ssel is determined a5 the difference bel￿een the sale proceeds and thè C8Trying value of the assel, and is re¢ognised In not in¢orn¥lloxpgnditurg1 lor tho year. 1.7 Imp•lmwnl of fly•d as$•t$ Al éach rèptsrling end dale, Ihè church rÈviÈws Ihè carrying amounts ol ils tangible assets lo delerrnin& whether there is any indication Ihal those assets have suftered an Impalmenl loss. 118ny such indication exists, the fecoverable amount ol the asset 1$ eslimaled in oryler lo determine the extent ol the knpairmenl loss lif 8nyI. 10-

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Ac¢ounllnu poll¢l•$ (Continued) Re¢overabio amount is the hioher ol fair value I￿$ ¢osis to Sell and valuo in use. In assvssing Yalue in Lbse. Ihe eslimated fulurfy cash fl{￿ ar8 discounlod lo Ih8ir pros8nl value using a pre-tax di$counl rate thal reflects current mark81 assessmorlls ol the litno valuB of money and the risk5 5pocific lo the asset lor whlch the eslimales ol lulure cash now% have nol been adjusted. 11 the recoverable amounl ol an asset 1$ estimated lo be less than ils carrying amoijnt, thtt carryng amount ol the 8ssel is reduced lo ils fecovefable amounl. An Impairmenl loss is recognised immedialely in incomel lexpendilurel lor the year. unless Ihe felevanl assel is carried al a revAlued amount, in which Gase the Impolrment loss is treated 8$ a révaluation decrèasè. Recognised impaiimenl thses are reversed il. and only il, the reason$ lor Ihe impairmenl loss have ceased lo apply. Where an impairment loss subsequenlly reverses, the carrying amount ol the asset is Increasèd to the revisèd Èslim81è of ils recovèrable amouni. bul so Ih81 Ihe In¢reAsèd carying amount does nol exeoed the carrying amounl that would have been determined h8d no impairmenl loss been recognised loi the asset in prior years. A reversal of an impairment loss is reco9nised immedialely. unless the relevant asset is carried in al a revalued amount. in which case the reversal of the imp8imienl kiss is trebled as a Tevalvation increase. 1.8 CaBh and cash equivalents Cash and cash equivalenls Include cash in hand. deposits hglcl al call with banks. other short-lerm liquid invgslmgnls with original malurilies ol three months 0118Ss. and bank overdrafts. 1.9 Flnanclal Instrumonts Thp church has elected to apply the provlsions of Sectlon 11 'B8sic Fin8nc481 Insliumenls, an¢J Se¢Aion 12 'Olher Fbnandal Instruments Issues, ol FRS 102 10 811 of Sts financhal Snsirumenls. Financydl instruments are recogniseLt in the chlbrch's balance sheel when the church becomes party lo ih8 coritraclual provi￿on8 ol thè inSt￿Ment. Financial assels and liabilities are offsel. with the net amounts pre5enled in Ihe financial statements. whtsn there is a legally enforceable ruht to set olf the recogni5ed amounts and there is an intention to sellle on nel basis or lo realise the asset and settle the liability slmultaneously. Basic financial a$s•t$ Basic Iinanaal assels. which Includ& debiors and cash and bank balances, ar8 Initially measurèd at transac1￿n price including transaction costs and are subsequently earrled al amorlised cost using ¢he effective interest melhod unless the arrangemenl conslilutes a linancing Irans8Ction. where the Iiansaclion Is measured 81 the presenl value ol the lulure receSpts discowled al a markel rate ol Inleresl, FifjanGkg1 assels classified as receivable within one year arè nol amorlised_ Ba51c ftnanclal Ilabllltles Basic financAal liabilitie5, including creditors and bank bans arg initially recognised al transaction price unless the 3rr8nggmenl wnstilules 8 finan￿ng Ir8n5aCtion, where the debt instrument measured al the present value ol the future paymonts dlscounted at a markèt ralè ol Inleiest. Financial liatililiès classified as payaNe wilhin one year are nol a￿rtised. Ogbl instwmgDls arg sUb￿qu￿ntlY carried 8t atnorts'sed G051, using the effective ir)lerest rate wnethod. Trado creditors aro obligatlons lo pay lor goods or servicos that have boen acquired li the ordinary course ol Dperalions frorn suppliers, Amounls payable are classif￿d a5 current liabilities if payment 15 due within one year or less.11 not. Ihoy awe presented as non-current liabilities. Trade creditors aTe recognised initially al Iransacliw pnce and subsoquenlly moasured at amortlse(J cost usin9 the effective interest method.

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting poli¢i08 {Continuedl Dere¢ognllion of lin•n¢lal li•bllltl8s FinancLql liabilities are deTecognised when the Chu￿h,$ conlr¥clual obligolions explre or are dlsch¥rgod or cancelled. 1.10 Employee benefits The ctssl ol any unused holiday enlitlement Is recognised in the per￿￿ in which the empkjyee's s6rvi¢$s are received. TermIna￿n bènefits are r8cognisBd immediately as an expens8 whgn Ihe church is Oemonstrably ¢ommilted to terminate the empk)yment of an employee or to provide termination benefits. Crltlcal a¢¢ountlng ￿tIMat•S and Judg•mentB In the application of the chijrch's accounting policies. the Deacon8 are required lo make judgements. eslimales and 85svmplions about the G8rryirig amgvnl of as%ts and liabilities Ihal aro not readily apparent trom other SOL+rcos. The estimates and asso¢ialed assumplions aro based on historical oxporience and other factOf5 that are consider8d lo be relevant. Actual Tesulis may diffor from these 05timales. The eslimalgs and undoilylng assumpllons ar& reviowgd on an ongoing b8$is. Rovi¥ions lo accounting eslimatcs are recognlsoé in the period In which the eslimalc is rE*vised wthere the revision atto¢l$ only Ihal period, ￿ in Iho period ol the revision and fuluro poriods whero the r6vision affec15 both ￿rrent and future periods, 12-

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MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 other a¢tlvltles UnTgStrlct•d Unreslrlcled lund8 runds gBn•r81 general CombTrned 2019 2020 ChLwch acliwlies and clubs 375 4.871 Inyestmfrnts Unr•$trl¢tod Unreslricled funds funds general general 2020 2019 Interest recei¥ab 12 14-

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Charitablè actlvltlès Mlnl$lry and Clubs •nd mlsslon othor fund •ctl¥itlgS Totslmlnlstry and Clubs and mlsslon othèr fund actlvltl•s Tol•l Combln•d 2019 2020 2020 2020 2019 2019 Staff costs Depreuallcn and ImpairmÉThl Costs of runniny 8clivilies Bu1￿1n9 ¢0s1s 37,768 37,768 37,065 37,065 23,65B 23.658 1.580 77 26.BOO 26.800 11,604 611 1.580 11.604 77 611 61.503 1.580 63.083 64.476 11,604 76,080 Gfanl fundlng of act￿ltIeS (see note 7} 16.861 16,861 19.979 19.979 Sh•r¢ ol support ¢osts lsÈe nole 81 Share of govemance costs (see Mle 81 27,223 27,223 29,870 29,870 1,500 1,500 3.249 3.249 107,087 1,580 108,667 117,574 11,604 129.178 Analys1$ by tund Unrèstrictèd funds general Unrestricted funds- ¢esignaied Restricled lunds 90,149 1,580 91,729 96.984 11,604 108,588 77 16,861 77 16.861 611 19,979 611 19,979 107,087 1,580 108,667 117.574 11.604 129,178 Grants payabl• 2020 2019 C¢mblned Gr8nts mede Isèe restrleled tunds note 16.861 19,979 16,861 19.979 15-

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Support Costs Support Governancè costs o$t$ 2010 Support Govemance costs costs 2019 Combined Olh8r suppotsrl expèndilure see below 27.223 27.223 29.870 29.870 Legal and professiona1 Aecounlancy fees Bonk chargès 1,673 1,260 316 1.673 1.260 316 1,260 240 1.260 240 27.223 1,500 28,723 29,870 3,249 33,119 Analysed between Charltable acllvilies 27,223 1,500 28.723 29.870 3.249 33,119 GovèmAnc& costs includes paymanls to thg accountants as shown above for accountancy foes and olher seNices. Oth•r support #xpendllure 2020 2019 Bu1￿1￿9 repairs and mainl8nanr Ral85 and Waier Lighl and heal Insur8n¢e Postage and Sta1￿￿￿ry Telephon8 Subscrlplions Sundry Expense5 Mortgage Interest Websit8 Cosls Cleaning Kitchen supplies 1.1B4 2.3B1 2,683 2,657 171 433 1,570 2,665 2,358 3,413 2.548 2W 455 1.404 11,710 1,074 2,946 408 12,674 487 2,648 784 27.223 29,870 Deacons None ol Ihe Deacons lor any person5 connected wilh ihernl r￿eNed any remuneration during the year. None of the Deacons were ieimbuised Iravelling expenses during the y&ai. 16

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED> FOR THE YEAR ENDED 31 DECEMBER 2020 10 Employèès Number of gmployg93 The average monthly number ol employees durirE the year was.. 2020 2019 Combined Number Number Full.lime employees Employmont cgsts 2020 2019 Comblned Wag6s and salaries Social securily costs Olher pension costs 30,128 876 6.764 29.667 736 6.662 37.768 37,065 Th¢ employèes are considered to the key management personnel. T￿re ￿re no employees whose 8nnu81 remuther8t￿n was £60.OOD or more, 11 Transfers A IransfeT of E10.570 was ￿ade from unreslri¢Aed to restricted funds lo wvgr Ihg excess of reStr￿ted lund expen¢Jllure over income. Following the complelion of the accommodalion projoct. all reslricted funds received in connection wilh tho Pfoject were lo the dosignalgd funds, Transfers aT¥ io match the vèlue ol freehold picy¢rly and fixture5 and fiitings asso¢ial8d th#rgwth, aftor allowance for outstandSng loans and Grodilors.

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 12 Tanglblè tlxed assets L4nd and Proporty bulldlngts ImpTov•inonts Flxturei, flttlngÉ & •9uipiiieiit Computer9 Total Cost Ai 1 January 2020- combined Additions 1,040,382 9.732 66,884 6,517 542 1.123.515 542 Al 31 December 2020 1.040,382 9,n2 66,B84 7.059 1,124,057 D•prgclBtlon and Impalrm•nt Al 1 January 2020- Combined Dèpreeiation charged In thè year 66.367 16.979 3.893 1.947 51.868 4.310 5.B12 421 127.940 23,657 Al 31 December 2020 83.346 5.840 56,178 6,233 1S1,597 Carrylng amount Al 31 December 2020 957,036 3,892 10.706 826 972,460 AI 31 Dgc8mbor 2019- combingd 974.015 5.839 15,016 705 995.575 13 Debtors 2020 2019 Combined Amounts falling due within one year. Olher debtOTS 15,356 4.146 14 Crèdltors: amounts falllng du• wlthln on• yaar 2020 2019 Combined Nol•$ Bank roans Other borrowings Other taxation and social security AccruaL% and delerred income 16 20.733 19,790 5,000 1,808 1,260 958 1.260 27.951 27,858 18-

MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 15 Cr•ditors: amounts falling dug aft•r morg than ong yoar 2020 2019 Combined Notes Bank loans Other creditors 16 230.721 25,000 261,583 30,000 255.721 281,583 16 Lo•n$ and oY•rdrafts 2020 2019 Comblned B8nk loans Olher loans 251,454 30,000 271,373 35,000 281.454 306.373 Payab￿ &￿th1Th one year Payab￿ all&r ortè year 25,733 255,721 24.790 281.583 Amounts induded above which fall due after five years.. payab￿ by iislalments 137,968 162,7B1 Thè long4erm loan is secured by a Ix8d charge ov9r th8 froehold prop&rty of the chartty. The rnortgage has boon ¢nt¢red into lo provide finance lor the building ol the thurch, il is lor 8 p¢riod of 15 y9ars. ￿PaYable by instalmenls and carnes inleresl al 4.5°fi pei annum. Tho other loan ￿lateS lo funds advanced by È member to 18eilitate the financing of Ihe new ¢hur¢h buildlng. Th1$ advance Is unsecured and inleresi free 8nd repayable. provided lund8 allow, in ¢qual inslalmenis 01 £5,000. 19

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MALVERN EVANGELICAL CHURCH NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 20 Related party transactlons There were no disclosable ￿ laled party Irans8Gtions during the yeai12019- none). 24-