MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2020
A company limited by guarantee
Company Number 1029607
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Contents
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Report of the Directors/Trustees | 2 – 4 |
| Independent Examiner’s Report to the Members | 5 |
| Financial Activities (Including Income and Expenditure Account) | 6 |
| Balance Sheet | 7 |
| Notes to the financial statements | 8-9 |
| Portfolio Movements | 10 |
| Manchester Domestic Mission Grants | 11 |
| Subscriptions from Member churches | 11 |
| MUCF, General and Leech Fund Grants | 12 |
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Legal and Administrative information
as at 31 December 2020
Status
The organization is a charitable company limited by guarantee, incorporated on 3[rd] November 1971. It is registered as a charity. It was granted Trust Corporation status on 18[th] January 1973.
The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed by its Articles of Association.
Directors/Trustees
The following served as directors from 1 January 2020 (or from date of appointment) to the date of this report:
Geoffrey Levermore Vince McCully Laura Mary Dobson Jeffrey Gould Rev. Anna Jarvis Rev. Christopher Cody Coyne Mark Pearce (appointed 9 June 2020) Rev. Daniel Crosby (appointed 9 June 2020)
The directors are those members of the parallel unincorporated association who are also members of the company.
Registered Office
Cross Street Unitarian Chapel, Cross Street, Manchester, M2 1NL
Bankers
CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ
Solicitors
Weightmans LLP, Pall Mall Court, 61-67 King Street, Manchester, M2 4PD
Independent Examiner
Fari Minaeian of Hanleys, Chartered Accountants, Spring Court, Spring Road, Hale, Cheshire WA14 2UQ
Investment Manager
Newton Investment Management Limited,
Mellon Financial Centre,160 Queen Victoria Street, London, EC4V 4LA
Page 1
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Report of the Directors/Trustees
for the year ended 31 December 2020
Report of the Directors/Trustees for the year ended 31st December 2020
The directors present their report, with the financial statements of the company, for the year ended 31st December 2020.
- Structure and objects of the company and its constituent trusts.
The company, which is limited by guarantee, whose registered number under the Companies Acts is 1029607, administers and accounts as sole trustee for four charities:
General Fund. (Charity Commission number 503753).
Manchester Unitarian Congregational Fund. (Charity Commission number1032203) Manchester Domestic Mission Society Fund. (Charity Commission number 253233) Leech Fund.
By virtue of its status as a Trust Corporation, it acts as sole trustee of seven churches in the Manchester District; of the Provincial Assembly of Lancashire and Cheshire; it is custodian trustee for another church, and with other trustees is a trustee of two further churches.
2. Public Benefit Statement
The Trustees take into account the Charity Commission guidance on public benefit and believe that the activities of the Trusts are in line with that guidance
3. Origin and objects of the funds
-
(a) The General Fund is derived from legacies, sale of Unitarian properties in the Manchester District and other funds which have been vested in it.
-
(b) The Manchester Unitarian Congregational Fund was created by the amalgamation of seven existing charities, the assets arising on the closure of a church, a grant from the Trustees of Flagg Chapel and the consideration for the release of a covenant on land formerly belonging to Swinton Church
The clear income from both these funds is to be applied “towards the upkeep, repair and improvement of churches whose congregations are members of the Manchester District Association, and in and towards the maintenance of services and otherwise furthering the religious, educational and charitable work of the Association”.
(c) The object of the Manchester Domestic Mission Society Fund is “the diffusion of religious and other elevating influences, by Ministry among the poor in Manchester”. In the 19th century the Society employed a missioner and set up schools. Nowadays grants are made to charities that operate in deprived parts of Greater Manchester.
(d) The Leech Fund was set up for the benefit of Ministers in the counties of Northumberland, Lancashire and Cheshire. In practice, it makes grants to ministers and students for the provision of books.
The company invests the financial assets of these Funds in stock exchange securities and deposits at interest.
Page2
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Report of the Directors/Trustees - continued
for the year ended 31 December 2020
4. Organisational and decision-making structure
The Executive Committee consists of the President, Treasurer, General Secretary and up to ten other members. Members other than the officers serve for three years. They are elected at the Annual General Meeting of the Unincorporated Association and meet four times a year, to decide policy, receive reports, and authorise grants. All are unpaid.
The Company is associated with twelve Unitarian churches in the Manchester area which send delegates, two per church plus its minister, to meetings of the parallel Unincorporated Association which also meets four times a year. That body, to which the Executive Committee reports, discusses matters of general interest and aims to support the constituent churches in their religious and social activities. It publishes a quarterly magazine, The Unitarian, which is available as a pdf on their website, www.unitariansmda.org.uk
5. Association with related parties, charities etc.
The charity is associated with the General Assembly of Unitarian and Free Christian Churches, which is the national body, in the United Kingdom, for Unitarians. It is not financially connected. The Association is also represented on Manchester Council of Christians and Jews, and the Standing Advisory Council on Religious Education (SACRE) for East Cheshire and Manchester.
6. Review of activities
-
(a) The General Fund provided for the administration costs and independent examination of the Company. The sale of shares produced a surplus for the fund of £2,363. The Fund generated net outgoing resources of £27,377 (2019–outgoing Resources £9,351). After the unrealised increase in the value of investment assets of £21,454, (2019-increase £81,395) the value of the Fund decreased by £5,923 (2019 – increase £72,044) in the year.
-
(b) The Manchester Unitarian Congregational Fund assisted, to the extent of £24,900 (2019 - £40,650), in the provision of support for the stipends of eight ministers. General subscriptions and donations amounted to £157,637 (2019 - £149,455). The sale of shares produced a surplus for the fund of £3,335. Expenditures in the year exceeded income by £161,708 (2019 –excess of income £565,026). After taking account of the unrealised gain on investment assets of £30,276 (2019 – gain £126,354) the Fund decreased in value by £131,432 (2019 – increase £691,380) in the year.
-
(c) The Manchester Domestic Mission Society Fund provided grants of £10,500 (2019 - £15,000) to charities which assist and advise persons resident in deprived parts of the City. The sale of shares produced a surplus for the fund of £1,442. Expenditure exceeded income by £1,495 (2019 - excess of expenditure of £5,331). The unrealised gain in the value of investment assets amounted to £13,089 (2019 – gain £49,658) which resulted in an increased value of the Fund of £11,594 (2019 – increase £44,327).
.
-
(d) The Leech Fund made a grant of £107 in the year (2019 - £100). The sale of shares produced a surplus for the fund of £37. There was a net surplus of £122 (2019 - surplus of £145). There was an unrealised gain in the value of investment assets of £332 (2019 -gain £1,261), leading to a increase in the Fund of £454 (2019-increase £1,406).
-
(e) The Association does not undertake fund raising activities.
Page 3
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Report of the Trustees - continued
for the year ended 31 December 2020
7. Statement concerning major risks
The main risk to the assets of the charity derives from the uncertain world economic situation and any adverse effect this could have on the capital value of its investments and of the income derived from them.
8. Grant-making policy
The General Fund makes grants for building improvements, surveys of its constituent churches and support of special initiatives regarding the finance of ministry.
The Manchester Unitarian Congregational Fund makes grants in aid of the stipends of ministers and for the repair and maintenance of church buildings. Donations are made, mainly to national Unitarian bodies. Grants are considered by the executive committee on their merits, and within the income of the Fund, taking one year with another.
Grants from the Manchester Domestic Mission Society Fund are recommended by the council committee. Its members actively monitor and visit the charities to which the grants are made. Grants from this Fund are intended to improve the lot of the poorer and more disadvantaged residents of Greater Manchester.
The Leech Fund makes grants to students or ministers for the purchase of books.
9. Directors’ responsibility for financial statements
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing those financial statements, the directors are required to select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; prepare the financial statements on a going concern basis unless it is inappropriate to presume that the
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding of the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
10. Independent Examiner
The Independent Examiner, Fari Minaeian of Hanleys, will be proposed for reappointment at the annual general meeting.
On behalf of the board, March 2021
Page 4
Manchester District Association of Unitarian and Free Christian Churches Incorporated
Independent Examiner’s Report to the Members for the year ended 31 December 2020
I report on the Financial Statements of the company for the year ended 31[st] December 2020. The statements include the financial activities of the following funds:
General Fund Charity Number 0503753 Manchester Unitarian Congregational Fund Charity Number 1032203 Manchester Domestic Mission Society Fund Charity Number 0253233
Respective responsibilities of trustees and the examiner.
As the charity's trustees you are responsible for the preparation of the accounts; you consider that the audit requirement of section 144(2) of the Charities Act 2011 (the Act) does not apply. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under section145 (5)(b) of the Act, whether particular matters have come to my attention.
Basis of the independent examiner’s report.
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. 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, 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 I do not express an audit opinion on the view given by the accounts.
Independent examiner’s statement.
In connection with our examination, no matter has come to my attention:
(1) which gives me reasonable cause to believe that in any material respect the requirements
(a) to keep accounting records in accordance with section 130 of the Act; and
(b) to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act have not been met; or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Fari Minaeian, BSc, FCA Hanleys Chartered Accountants Spring Court Spring Road Hale Cheshire
Date:
Page 5
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Financial Activities (Including Income and Expenditure Account)
for the year ended 31 December 2020
| Note Incoming Resources Sale of Dob Lane Sale of Car Park Land Gain on Sale of shares Subscriptions from member churches Investment Income 5 Total Incoming Resources Resources Expended Grants Administration Total Resources Expended Net Incoming Resources 6 Increase in value of Investment Net Movement in Funds Funds 1st January 2020 Funds 31st December 2020 |
General MUC MDMS Leech Total Total Fund Fund Fund Fund 2020 2019 £ £ £ £ £ £ - - - 3,300 - 2,363 - 3,335 - 1,442 - 37 - 7,177 732,766 - 1,215 - - - 1,215 413 12,420 17,494 7,563 192 37,669 49,211 |
|---|---|
| 15,998 20,829 9,005 229 46,061 785,690 |
|
| - 182,537 10,500 107 193144 205,205 43,375 - - - 43,375 29,996 |
|
| 43,375 182,537 10,500 107 236,519 235,201 |
|
| (27,377) (161,708) (1,495) 122 (190,458) 550,489 21,454 30,276 13,089 332 65,151 258,668 |
|
| (5,923) (131,432) 11,594 454 (125,307) 809,157 789,584 1,440,214 356,809 9,534 2,596,141 1,786,984 |
|
| 783,661 1,308,782 368,403 9,988 2,470,834 2,596,141 |
Page 6
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED Balance Sheet at 31 December 2020
| Fixed Assets Tangible fixed assets - Investment Land Investments Loans Current Assets Debtors Cash at bank Less Liabilities falling due within one year Net current assets Total net assets Unrestricted Funds General Fund Manchester Unitarian Congregational Fund Manchester Domestic Mission Society Fund Leech Fund |
Notes 2 3 4 |
2020 2019 £ £ - - 2,317,105 2,494,777 56,700 24,900 |
|---|---|---|
| 2,373,805 2,519,677 |
||
| - 999 100,698 78,872 (3,669) (3,407) |
||
| 97,029 76,464 |
||
| 2,470,834 2,596,141 |
||
| 783,661 789,584 1,308,782 1,440,214 368,403 356,809 9,988 9,534 |
||
| 2,470,834 2,596,141 |
For the year ended 31st December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.The members have not required the company to obtain an audit of its accounts for the year in question in accordance
with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the requirements of the Act with respect to (1) accounting records
and (2) preparing accounts which give a true and fair view of the state of affairs of the company as at the end of and its profit and loss for the financial year and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.
These accounts have been prepared in accordance with the provisions applicable to companies subject to small companies’ regime.
These accounts were approved by the Directors on March 2021 and were signed on their behalf by:
– Director
– Director
Page 7
for the year ended 31 December 2020
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Notes forming part of the Financial Statements
1. Accounting Policies
(a) The financial statements have been prepared under the historical cost convention, as modified by the inclusion of fixed asset investments at market value, and in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the Companies Act 2006 and follow the recommendations in Charities SORP (FRS102) applicable for accounting periods commencing on or after 1 January 2016.
(b) Listed investments are included in the balance sheet at their middle market value at the accounting date.
(c) Grants and donations receivable and payable are accounted for when received or paid by the charity.
(d) Dividends and interest on securities and bank deposits are brought into account when received by the charity or its investment manager.
2. Investments
| Opening balance Add acquisitions in the year, at cost Less sales receipts in year Add realised profit/ (loss) on Sales Add Increase in value of investment Closing balance£ 3. Unsecured loans Balance outstanding at 1stJanuary 2020 New loan Addinterest Lessrepayments Balance outstanding at 31stDecember 2020 |
2,494,777 1,536,108 - 700,000 (250,000) - 2,244,777 2,236,108 7,177 __ _- 2,251,954 2,236,108 65,151 258,669 2,317,105 £ 2,494,777 OldhamCross Street Chapel £ £ 24,900 NIL 0 - - 24,900 40,000 1,200 7,000 £23,700 £33,000 |
1,536,108 700,000 - 2,236,108 __ _- 2,236,108 258,669 £ 2,494,777 |
|---|---|---|
Page 8
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN
CHURCHES INCORPORATED
Notes forming part of the Financial Statements (Continued)
for the year ended 31 December 2020
| 4. Liabilities falling due within one year.2020 2019 |
|---|
| £ £ |
| Lay Preachers Association Fund 398 398 |
| Legal fees accrual 27 - |
| Grants payable - - |
| General Creditors 1,594 1,359 |
| Independent Examiner’s fee1,650 1,650 |
| £3,669 £3,407 |
5. Investment Income
Investments 2020 2019 £ £ £ General Fund 12,420 12,420 16,932 MUC Fund 17,494 17,494 22,365 MDMS Fund 7,563 7,563 9,669 Leech Fund 192 192 245 £37,669 £37,669 £49,211
6. Net Incoming Resources for the year are stated after charging:
7. Staff costs and numbers
The secretary charged £nil for the work done in the year (2019-£Nil)
8. Taxation
The charitable company is exempt from corporation tax on its charitable activities.
9. Analysis of net assets between funds:
Debtors Investments Loans Cash at bank Current liabilities |
General Fund £ - 631,160 56,700 99,470 (3,669) |
MUC MDMS Leech Total Fund Fund Fund Funds £ £ £ £ - - - - 1,312,172 364,647 9,126 2,317,105 _- - -_56,700 (3,390) 3,756 862 100,698 - - - (3,669) - £1,308,782 £368,403 £9,988 £2,470,834 |
MUC MDMS Leech Total Fund Fund Fund Funds £ £ £ £ - - - - 1,312,172 364,647 9,126 2,317,105 _- - -_56,700 (3,390) 3,756 862 100,698 - - - (3,669) - £1,308,782 £368,403 £9,988 £2,470,834 |
MUC MDMS Leech Total Fund Fund Fund Funds £ £ £ £ - - - - 1,312,172 364,647 9,126 2,317,105 _- - -_56,700 (3,390) 3,756 862 100,698 - - - (3,669) - £1,308,782 £368,403 £9,988 £2,470,834 |
|
|---|---|---|---|---|---|
| **£738,661 ** | **£1,308,782 ** | £368,403 | £9,988 |
Page 9
MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Notes forming part of the financial statements (Continued)
for the year ended 31 December 2020
Portfolio Movements in the twelve months to 31[st] December 2020
| Stock Quantity 31.12.20 Equities Sustainable Real Return Fund 409,138 Global Income Fund Newton 100,834 Overseas Growth and Income Fund 712,769 SRI Fund for Charities 295,550 Total Investments |
Market Cost Value Value 31.12.19 £ 461,098 468,668 150,000 252,175 611,098 720,843 560,233 1,041,355 287,237 489,756 847,470 1,531,111 1,458,568 2,251,954 |
Market (Decrease)/ Value Increase in 31.12.20 value £ £ 514,123 45,455 248,998 (3,177) 763,121 42,278 1,035,795 (5,560) 518,189 28,433 1,553,984 22,873 2,317,105 65,151 |
|---|---|---|
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MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Manchester Domestic Mission Grants and Subscriptions from member churches
for the year ended 31 December 2020
| Manchester Domestic Mission Grants 2020 2019 £ £ Barlow Moor Community Assoc. 2,000 3,500 The River - - Oldham United 1,500 - River Manchester 2,000 3,000 Tree of Life Centre Wythenshawe 2,500 1,750 Oldham UK Education and Faith Foundation 2,000 2,000 Oldham Destitution food project - 1,500 Coffee 4 Craig - 2,000 East Cheshire Mental Health 500 500 Christ Church Colshaw - 750 The Wednesday Club - - Oldham Unity- - |
Manchester Domestic Mission Grants 2020 2019 £ £ Barlow Moor Community Assoc. 2,000 3,500 The River - - Oldham United 1,500 - River Manchester 2,000 3,000 Tree of Life Centre Wythenshawe 2,500 1,750 Oldham UK Education and Faith Foundation 2,000 2,000 Oldham Destitution food project - 1,500 Coffee 4 Craig - 2,000 East Cheshire Mental Health 500 500 Christ Church Colshaw - 750 The Wednesday Club - - Oldham Unity- - |
Manchester Domestic Mission Grants 2020 2019 £ £ Barlow Moor Community Assoc. 2,000 3,500 The River - - Oldham United 1,500 - River Manchester 2,000 3,000 Tree of Life Centre Wythenshawe 2,500 1,750 Oldham UK Education and Faith Foundation 2,000 2,000 Oldham Destitution food project - 1,500 Coffee 4 Craig - 2,000 East Cheshire Mental Health 500 500 Christ Church Colshaw - 750 The Wednesday Club - - Oldham Unity- - |
Manchester Domestic Mission Grants 2020 2019 £ £ Barlow Moor Community Assoc. 2,000 3,500 The River - - Oldham United 1,500 - River Manchester 2,000 3,000 Tree of Life Centre Wythenshawe 2,500 1,750 Oldham UK Education and Faith Foundation 2,000 2,000 Oldham Destitution food project - 1,500 Coffee 4 Craig - 2,000 East Cheshire Mental Health 500 500 Christ Church Colshaw - 750 The Wednesday Club - - Oldham Unity- - |
|---|---|---|---|
| 10,500 15,000 | |||
| Subscriptions from Member Churches Altrincham Brookfield Chorlton Cross Street Dean Row Dob Lane Hale Knutsford Macclesfield Monton Oldham Rivington Styal Miscellaneous |
- - - - - - - - - - - - - 1,215 1,215 |
- - - - - - - - - - - - - 413 413 |
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MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED
Stipend and Other Grants
for the year ended 31 December 2020
| Manchester Unitarian Congregational Fund Stipend Grants Knutsford Monton Macclesfield Rivington Norcliffe Urmston Chorlton Oldham Other Grants (incl.Covid 19 Grants) Monton Unitarian College Chorlton Oldham roof Knutsford Urmston Dunham Road Norcliffe Rivington Dean Row Brookfield Cross Street Hale Macclesfield Total Congregational Fund Grants Donations Trevor Jones Fund Inquirer Ministry Student Fund SACTH Hucklow Bursary Fund Historic Buildings Leech Fund Book grant Total Grants and Donations |
2020 £ 3,000 6,000 - - 900 5,000 5,000 5,000 24,900 20,694 4,000 14,275 15,395 14,000 6,500 15,500 9,000 9,173 7,000 4,000 14,100 10,000 14,000 157,637 182,537 - - - - - - - 107 107 182,644 |
|
|---|---|---|
| 2,500 2,000 2,000 2,000 1,000 1,000 10,500 100 100 190,205 |
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