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2020-12-31-accounts

REGISTERED CHARITY NUMBER:- 251436

WEBSITE:- www.hagleyfreechurch.org.uk

HAGLEY FREE CHURCH

REPORT AND ACCOUNTS

31 DECEMBER 2020

HAGLEY FREE CHURCH

ADDRESS

95, Worcester Road, West Hagley, Stourbridge, DY9 0NG

REGISTERED CHARITY NUMBER

251436

BANKERS The Co-operative Bank plc, P.O. Box 250, Delf House, Skelmersdale, WN8 6WT

BROKERS Canaccord Genuity Wealth Management, Slip House, Princes Drive, Worcester, WR1 2AB.

INDEPENDENT N Webb FCA of Azets, (formerly Baldwins) 1[st] Floor Copthall House EXAMINER 1 New Road, Stourbridge, DY8 1PH

CONTENTS OF REPORT AND ACCOUNTS

Page
Notice re late accounts 2
Background information 3
Report of the committee 4
Report of the trustees 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the accounts 7 - 13
Independe 14

1

HAGLEY FREE CHURCH

NOTICE RE LATE ACCOUNTS

Partly as a result of the Covid-19 measures introduced by HM Government book-keeping and accounts preparation has been delayed. Committee members and trustees have, therefore, agreed that there will be no annual general meeting of Hagley Free Church in 2021 and the present committee will remain in office until the 2022 annual general meeting the plan is that the 2021 accounts will be prepared and examined so that an annual general meeting can be held in May 2022. In other words, we aim to get back to pre-Covid timing.

Copies of the 2020 accounts are now available and questions regarding them can be put to the treasurer or any committee member.

By order of the committee

C Millington

19 November 2021

General Secretary

2

HAGLEY FREE CHURCH

BACKGROUND INFORMATION

CONSTITUTION

Although the Church, which is inter-denominational, opened for worship in 1905, the charity which governs it is constituted by a Deed of Trust dated 13 March 1912. That Trust Deed stipulates that Trustees have to be appointed, their prime responsibility being custodian. Day to day management and administration of the Church is in the hands of a committee, up to twelve in number, including the minister (a position presently vacant), general secretary and treasurer who are ex officio, all of whom are elected by the membership. Charity legislation deems committee members to be trustees in respect of the responsibilities they carry. Meetings are presently being chaired by Martin Heathcock (deputy chair)

OBJECTS

To promote the Christian Gospel through regular Sunday worship, weekday activities and other means of outreach. Reference to the accounts will reveal that the membership endeavours to do this within the immediate neighbourhood of Hagley and by supporting missionary and other charitable causes in the midlands, nationally and overseas.

TRUSTEES

The custodian trustees, in whose names the freehold land (on part of which the church buildings stand) and investments are held, are all senior members of the fellowship whose views and experience are highly valued. They are: -

Margaret Tubb Barbara Harris John Price * Bryn Perrins ** Martin Heathcock ** Andrew Brodie *** Joan Ellis Bob Green Peter Davies Peter Longden Alun Nicholas * Died on 22 April 2020.

** These trustees liaise with Canaccord Genuity Wealth Management concerning Investments. *** Resigned 20 September 2021

COMMITTEE

Since the 2020 annual general meeting the committee has comprised: -

Rev David Tennant Honorary Minister/chair Honorary Minister/chair ex officio retired 4 July 2021
David Tubb General Secretary resigned 4 July 2021
Christopher Millington General Secretary from 6 July 2021
Martin Heathcock Treasurer also deputy chair ex officio
Alun Nicholas Katharine Johnson Nerys Dewhirst
Peter Longden Marjorie Fernihough

Committee members meet monthly, except in August and December, to review matters and are available to receive ideas and comments about the life of the church for discussion within those meetings. The committee is ably assisted by property stewards and the leaders of the various sub-groups which give vitality and outreach to the life of the Church throughout each week of the year.

3

HAGLEY FREE CHURCH

REPORT OF THE COMMITTEE YEAR ENDED 31 DECEMBER 2020

The committee presents its report together with the independently examined accounts for the year ended 31 December 2020.

COMMITTEE MEMBERS

The names of committee members elected to serve at the 2020 annual general meeting will be found on page 3.

REVIEW OF THE YEAR AND BEYOND

What a year! The pandemic meant that very few services were held and most of our sub-groups only functioned for the first few weeks of the year. Two of them have ceased to operate and others are looking for new leaders. At our delayed AGM, held at the end of September, Rev David Tennant indicated that he wished to stand down as soon as possible He subsequently decided to make the service on 4 July 2021 his last as honorary minister. A small group is working to find a successor and we trust the Holy Spirit to guide the whole membership so that the church can look forward to a future full of enthusiasm, under new leadership.

Sometimes things unexpectedly work together and this so was for us. A major upgrade to the kitchen had taken place towards the end of 2019 and some tidying up and redecoration in the kitchen was necessary to finish the job. The hall and stage area also needed a facelift. The church had the money, the buildings were not being used and we found a local builder/decorator who was looking for work. The transformation has to be seen to be believed. However, while working on this project, a problem was spotted with one of the church window frames containing stained glass which tells the story of Easter day. Dry rot was found, so a local joinery firm dismantled the window, made a replacement and rebuilt & replaced it. £9,000 was the cost but the result is superb.

Many of our worshippers have supported the church financially during the lockdown so, to date, we have not needed to sell any of our investments. Out of investment income we ve been able to send £500 each month to The Black Country Food Bank as well as helping a few other charities. Long may this practical way of putting the Gospel in practice continue.

Sadly, one member died during the year, while some moved away and others ceased to attend due to failing health or moved into care homes. The total membership of 78 includes about 55 who are active within the life of the Church, while some of the remainder live in other parts of the country but still consider Hagley Free Church their spiritual home. Additionally, around 40 friends, some of whom have started to attend during the year, regularly worship with us thereby enriching the life of the fellowship. Thanks are due to Rev David Tennant and the pastoral team for regular contacts with the housebound and those in care homes & hospital: David also wrote regular letters which were sent to the majority of worshippers during lock down until his retirement.

INTANGIBLE INCOME

Much of the work of the church, in all its facets, is carried out voluntarily by members and friends. Vestry, door & communion stewards together with pastoral work & catering are just some of the areas where that help is much appreciated.

ACCOUNTS EXAMINER

Nicholas Webb FCA of Azets fulfils this office and is willing to continue in that office.

Hagley By order of the committee 19 November 2021 Martin Heathcock Acting chair of committee REPORT OF THE CUSTODIAN TRUSTEES YEAR ENDED 31 DECEMBER 2020

Interest rates on invested funds remain very low but our investments are mainly equity based. In line with the market, they have increased in value during the year. We had expected to see a significant reduction in investment income, due to Covid 19, but this did not materialise. The church s finances are, therefore, still very strong.

Hagley 19 November 2021

On behalf of the Trustees Barbara Harris Chair

4

STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 DECEMBER 2020

HAGLEY FREE CHURCH

----- Start of picture text -----
Restricted
Unrestricted Income Endowment Total Total
Funds Funds Funds 2020 2019
£ £ £ £ £
INCOME AND ENDOWMENTS FROM:- (Note 5)
Regular giving by worshippers 18,293 18,293 24,751
Donations and legacies 4,802 4,802 16,621
Use of facilities by church groups 2,351 2,351 9,194
Use of facilites by outside groups 4,804 4,804 10,426
Other trading activities 1,294 1,294 6,682
Investments 17,298 17,298 20,575
Other - including Gift Aid tax recoverable 5,012 5,012 6,653
Total 53,854 0 0 53,854 94,902
EXPENDITURE ON:- (Note 6)
Worship, witness and teaching 3,886 3,886 10,621
Cultural, social and recreational 2,223 2,223 9,118
Property costs 26,023 26,023 48,805
Management and administration 16,051 16,051 14,291
Raising funds 0 0 0
Donations General donations 3,148 3,148 0
Ex Harvest & Investment Income 6,245 6,245 11,600
Home Missions etc 0 0 2,150
Christian Aid 400 400 0
Special & retiring collections 0 0 2,190
From Shoppers Coffee 350 350 2,803
By other sub-groups 389 389 1,040
Total 58,715 0 0 58,715 102,618
Net gains/(losses) on investments 2,202 -19,540 23,872 6,534 70,450
Net income/(expenditure) -2,658 -19,540 23,872 1,674 62,734
Transfers between funds - - - - -
Net movement in funds -2,658 -19,540 23,872 1,674 62,734
Total funds brought forward 501,959 164,165 36,898 703,022 640,288
Total funds carried forward 499,301 144,625 60,770 704,696 703,022
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year

All income and expenditure relate to continuing activities

The attached notes form part of these accounts

5

HAGLEY FREE CHURCH

BALANCE SHEET 31 DECEMBER 2020

FIXED ASSETS
Tangible assets
Freehold land and buildings (Note 9)
Organ, furnishings and equipment (Note 10)
Investments (Note 11)
Trustees
General
Organ
Total fixed assets
CURRENT ASSETS
Debtors (Note 12)
Cash at bank and in hand (Note 13)
Total current assets
Creditors:amounts falling due within
one year (Note 14)
Net current assets
Total net assets
THE FUNDS OF THE CHARITY
(Note 15)
Endowment funds
Unrestricted funds-designated Organ fund
Unrestricted funds
Restricted income funds
Total funds		 Restricted
Unrestricted
Income
Endowment
Total
Total
Funds
Funds
Funds
2020
2019
£
£
£
£
£
67,313
67,313
67,313
71,200
71,200
60,602
144,625
60,770
205,395
201,063
330,561
330,561
328,376
1,108
1,108
1,091
470,182
144,625
60,770
675,577
658,445
6,556
6,556
21,878
27,472
27,472
38,241
34,028
0
0
34,028
60,119
4,910
4,910
15,542
29,118
0
0
29,118
44,577
499,300
144,625
60,770
704,695
703,022
60,770
60,770
36,898
1,108
1,108
1,191
498,192
498,192
500,768
144,625
144,625
164,165
499,300
144,625
60,770
704,695
703,022

The attached notes form part of these accounts

APPROVAL The accounts set out on pages 5 to 13 were approved by representatives of both the church committee and the custodian trustees on 19 November 2021

Signed on behalf of the committee:-

Martin Heathcock - Hon. Treasurer and Deputy Chair

Signed on behalf of the custodian trustees:-

Barbara Harris - Chair

6

HAGLEY FREE CHURCH

NOTES TO THE ACCOUNTS 31 DECEMBER 2020

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:-

The committee considers it inappropriate to provide any depreciation as the majority of tangible fixed assets are included at a very low historical cost, with the freehold premises and organ, furnishings and equipment being maintained in good condition. With the exception of the change from pews to chairs in the worship area in 2008 (where all but one of the old oak pews have been sold) all repairs and replacements are charged to expenditure as incurred. All assets are insured at full estimated replacement cost for a total of £1,894,475.

Over the years the church has received a number of gifts in kind, many of them modest in value. None of these are reflected in the accounts although substantial items of furnishings, stained glass windows etc. are appropriately insured.

Dividends are accounted for when due and payable, and interest entitlements are accounted for as they accrue.

The Charity benefits greatly from the involvement and enthusiastic support of its many volunteers. Mention of this is made in the Review of the year on page 4. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of volunteers is not recognised in the accounts.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be reliably measured. As the church is unable to recover VAT that element of each cost is added to the cost of the goods or services concerned. Costs are allocated as per the analysis in note 6.

7

HAGLEY FREE CHURCH

NOTES TO THE ACCOUNTS 31 DECEMBER 2020

1 Accounting policies continued

Hand driers and associated costs are leased over a five year period; the rentals being charged on a straight line basis.

These are capitalised where they can be used for more than one year and where the life is considered to be at least four years.

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

These are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be reliably measured or estimated.

Most of these manage their own finances and have their own bank and/or building society accounts. To comply with the Charity SORP, figures from those groups are included in these accounts.

A broad spread of investments is adopted, excluding holdings with significant trading in tobacco, armaments, gambling and pornography. Three of the custodian trustees receive quarterly valuations from the brokers, together with a covering letter commenting on the economic climate, both past and future. Investments are made on an advisory basis and amendments to the holdings are recommended by the brokers from time to time, particularly when takeovers occur.

The church is fortunate in having had voluntary organists/pianist for many years. In recognition of this an annual transfer is made from the general fund to the organ fund to provide for future major repair and improvements to the instrument.

Hagley Free Church is governed by a Deed of Trust dated 13 March 1912. It is registered with the Charity Commission, No 251436, and HM Revenue and Customs to enable Gift Aid tax to be recovered.

Donations and legacies of £4,545 (2019 £16,647) may include sums received from Trustees (custodian and committee members), including their spouses. Precise figures cannot be given as not all donations are identifiable.

4 Investment income

This represents dividends and interest from quoted investments and monies held on deposit in banks and building societies.

8

----- Start of picture text -----
£ 22,704 533 124 334 601 258 55 142 24,751 16,621 9,194 10,426 3,124 3,415 143 6,682 20,575 6,653 6,653 94,902
Total 2019
£ 0 0 697 697
Funds
31 DECEMBER 2020 Endowment
£ 533 124 334 601 258 55 142 2,047 1,003 143 1,146 3,193
Income Funds
Restricted
£ 22,704 22,704 16,621 9,194 10,426 2,121 3,415 5,536 19,878 6,653 6,653 91,012
Funds
Unrestricted
£ 18,081 212 18,293 4,802 2,351 4,804 451 843 1,294 17,298 5,012 5,012 53,854
Total 2020
£ 0 0 0 0
Funds
Endowment
£ 0 0 0 0
Income Funds
Restricted
£ 18,081 212 18,293 4,802 2,351 4,804 451 843 1,294 17,298 5,012 5,012 53,854
Funds
Unrestricted
Analysis of income and endowments Giving by regular worshippers and visitors Sunday collections and monthly standing orders - other than below Christian Aid Barnardo's - Christmas Day In memoriam Retiring - SE Africa Cyclone Bahamas Mary Stevens Hospice Communal Christmas Card Other donations, legacies etc Use of facilities by church groups Use of facilities by outside groups Other trading activities Shoppers Coffee Sundry sales Harvest Lunch & Easter Breakfast Income from investments & bank deposits Other income Income tax on Gift Aid Sundry income TOTALS
5
NOTES TO THE ACCOUNTS
----- End of picture text -----

9

----- Start of picture text -----
Total 2019 £ 7,247 200 3,120 54 10,621 824 6,563 1,542 189 9,118 2,125 3,304 4,801 38,575 48,805 7,713 543 731 4,024 1,280 14,291 0 19,783 102,618
£ 0 697 697 0 697
Funds
31 DECEMBER 2020 Endowment
£ 0 0 0 3,193 3,193
Income Funds
Restricted
£ 7,247 200 3,120 54 10,621 824 6,563 1542 189 9,118 2,125 3,304 4,801 37,878 48,108 7,713 543 731 4,024 1,280 14,291 16,590 98,728
Funds
Unrestricted
£ 3,236 650 3,886 260 1,012 933 18 2,223 1,828 3,099 5,672 15,424 26,023 8,595 478 923 4,710 1,345 16,051 0 10,532 58,715
Total 2020
£ 0 0 0 0 0
Funds
Endowment
£ 0 0 0 0 0
Income Funds
Restricted
£ 3,236 650 3,886 260 1,012 933 18 2,223 1,828 3,099 5,672 15,424 26,023 8,595 478 923 4,710 1,345 16,051 10,532 58,715
Funds
Unrestricted
Analysis of expenditure Worship, witness and teaching Fees and expenses - minister & visiting preachers Web site and pew sheet Advertising Pastoral work, including flowers Cultural, social and recreational Speakers etc Outings and refreshments Social events Toys, sports, gifts & prizes etc Property upkeep Insurance, rates and water Gas and electricity Cleaning Repairs and maintenance Management and Administration Admin assistant General printing, stationery, postages etc Telephone and broadband Professional fees Sundries Other Cost of fund raising items sold Donations TOTALS
6
NOTES TO THE ACCOUNTS
----- End of picture text -----

10

HAGLEY FREE CHURCH

NOTES TO THE ACCOUNTS 31 DECEMBER 2020

7
Details of certain items of expenditure
7.1
Trustees expenses
Number of trustees who were paid expenses
Telephone and broadband (estimate)
Mileage		 2020
2019
£
£
2
2
299
299
515
878

During the year Mrs. K Johnson received £4,780 (2019: £4,548) for her duties as a cleaner, and Mrs. S Oksnerrova the wife of member C. Millington, received £8,595 (2019: £7,713) for her duties as an administrative assistant

7.3
Fees for the examination of the accounts
Independent examiner's fees for reporting on the accounts
Other fees - payroll costs and gift aid claim
8
Paid Employees
8.1
Staff costs
Gross wages and salaries
8.2
Average number of full-time equivalent employees in the year
9
Freehold land and buildings
At 1 January and 31 December 2020
10
Organ, furnishings and equipment
At 1 January 2020
Additions
At 31 December 2020		 3,250
3,250
744
774
13,375
12,261
1
1
67,313
67,313
60,352
46,207
10,848
14,395
71,200
60,602

11

HAGLEY FREE CHURCH

NOTES TO THE ACCOUNTS 31 DECEMBER 2020

11
Investments
11.1 In respect of Endowment Funds
Quoted at valuation
Held by brokers
Balance at Co-operative Bank
11.2 In respect of Income Funds
TRUSTEES INVESTMENTS (see note 1(p) on page 8)
Quoted at valuation
Held by brokers
Balance at Co-operative Bank
11.3 In respect of General Unrestricted Funds
OTHER INVESTMENTS
Quoted at valuation
Held by brokers
Balance at Co-operative Bank
11.4 In respect of General Unrestricted Funds
ORGAN FUND
Quoted at valuation
Balance at Co-operative Bank
12
Debtors
Income tax recoverable under Gift Aid
Legacy from deceased member's estate
Sundry debtors
Payments in advance		 2020
2019
£
£
60,748
36,905
-35
-64
57
57
60,770
36,898
143,037
163,279
1,565
862
24
24
144,625
164,165
318,039
320,234
5,052
671
7,470
7,471
330,561
328,376
850
833
258
258
1,108
1,091
3,661
4,426
12,491
1,797
3,105
1,098
1,856
6,556
21,878

12

HAGLEY FREE CHURCH

NOTES TO THE ACCOUNTS 31 DECEMBER 2020

13
Cash at bank and in hand
13.1 This is made up as follows:-
HFC current account
deposit account
cash in hand
Sub-Groups Bank & Building Society accounts
cash in hand
13.2 Sub-Group balances relate to:-
Badminton Club
Mother & Toddlers Group
Fellowship
Shoppers Coffee
Hand of Friendship Centre
Sunday School
Ladies Fellowship
Tuesday Tea Club
14
Creditors: All due within one year
Trade creditors and accruals		 2020
2019
£
£
-2,657
7,647
0
2,118
40
23
29,679
28,051
410
402
27,472
38,241
4,910
15,542

15 Funds of the Charity

Organ fund - part of General Fund but designated
Balance at 1 January
Annual transfer from General fund
Year's dividends/interest
Change in value of investments
Transfer to General Fund re purchase of new organ
Balance at 31 December		 2020
2019
£
£
1,091
13,384
250
250
538
786
17
1,066
0
-14,395
1,896
1,091

15.3 The endowment fund represents a 2003 legacy from the late C. G. Davies. The capital is to be retained in perpetuity, the income arising may be used for the repair, redecoration or adornment of the church or its fabric.

13

HAGLEY FREE CHURCH

Report to the trustees/members of Hagley Free Church on the accounts for the year ended 31 December 2020, Charity no. 251436, set out on pages 5 to 13.

Respective responsibilities of trustees and examiner

T consider that an audit is not required for this year (under section 144 of the Charities Act 2011 (The Act), and that an independent examination is needed.

It is my responsibility to:

Basis of independent e

statement

My examination was carried out in accordance with 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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, seeking explanations from the 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 set out in the statement below.

ment

In connection with my examination, no matter has come to my attention

  1. which gives me reasonable cause to believe that in, any material respect, the requirements: to keep accounting records in accordance with section 130 of the Charities Act; and

  2. to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act

  3. have not been met; or

  4. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

N Webb FCA

Azets - Accountants First Floor, Copthall House 1 New Road Stourbridge DY8 1PH

14