Registered Charity Number: 518178
HOPE CHURCH, LANCASTER
ANNUAL REPORT AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2021
HOPE CHURCH, LANCASTER FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| Contents | Pages | ||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Trustees’ Annual Report | 2 | ||
| Independent Examiner’s Report | 3 | ||
| Statement of Financial Activities | 4 | ||
| Balance Sheet | 5 | ||
| Notes to the Financial Statements | 6 to 12 |
___________________
HOPE CHURCH, LANCASTER REFERENCE AND ADMINISTRATIVE DETAILS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
| The Board of Trustees | J Fox |
|---|---|
| AJ Gardner | |
| JLC Haxby | |
| P Henderson | |
| TP Morris | |
| Principal Address | Hope Church |
| Queen Street | |
| Lancaster | |
| LA1 1RX | |
| Charity Registered Number | 518178 |
| Independent Examiner | M R Cornall Esq |
| 102 Heath Road | |
| Ashton-in-Makerfield | |
| Wigan | |
| Lancashire | |
| WN4 9HH | |
| Bankers | Barclays Bank plc |
| 38 Market Street | |
| Lancaster | |
| LA1 1HR | |
| CAF Bank Limited | |
| 25 Kings Hill Avenue | |
| Kings Hill | |
| West Malling | |
| Kent | |
| ME19 4JQ |
___________________
1
HOPE CHURCH, LANCASTER
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, 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 published on 16 July 2014 (as amended by Update Bulletin 1 published on 2 February 2017).
Objectives and activities
Objects and aims
The object of the Hope Church, Lancaster is the furtherance, in Lancaster, of the religious and other charitable work of the Free Methodist Church of North America in accordance with the doctrines, disciplines and usages of that church for the time being as set forth in the book of discipline.
Objectives, strategies and activities
The church was established for Christian worship, prayer, Bible teaching and the preaching of the gospel. We seek to serve the local community by providing a place of prayer and worship.
Public benefit
We regularly promote and publicise our activities in the local community.
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievement and Performance
Looking back over 2021 we are thankful to God for His continued provision of the gifts, tithes and offerings for His work. We count it a privilege to have been able to support many missionary societies and individuals home and overseas. We have continued to reach out into our local community with God’s love and care. We are particularly pleased that we have been able to continue to serve our community despite the challenges we have faced due to the Coronavirus pandemic.
Financial review
Policy on reserves
Reserves held are usually sufficient to pay on-going expenses for at least two months. Any surplus funds are transferred to interest bearing accounts. Free reserves held at the year end are £163,104 (2020 - £108,476)
Investment policy and objectives
At the present time the trustees do not have a selection policy for investment as finances are such that there are only low surplus funds.
Structure, Governance and Management
The charity was established by trust deed dated 09/03/00 (New Scheme) and is registered with the Charity Commission, No 518178. Hope Church, Lancaster is one of a number of Free Methodist Churches in the United Kingdom Conference. The members of the Church elect the trustees on an annual basis. The Annual General Meeting is held in June each year.
Signed on behalf of the trustees
T P Morris Treasurer Approved by the trustees on 20 October 2022
___________________
2
HOPE CHURCH, LANCASTER
INDEPENDENT EXAMINER’S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
I report on the accounts of the Hope Church, Lancaster for the year ended 31 December 2021, which are set out on pages 4 to 12.
Respective responsibilities of the 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 year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
-
examine the accounts under section 145 of the Charities Act;
-
to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
-
to state whether particular matters have come to my attention.
Basis of independent examiners’ statement
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 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 no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
Independent examiners’ statement
In the course of 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 2011; and
-
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Charities 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.
M R Cornall Esq 102 Heath Road Ashton-in-Makerfield Wigan Lancashire WN4 9HH
20 October 2022
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3
HOPE CHURCH, LANCASTER
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
| Unrestricted | Designated | Restricted | Total Funds | Total Funds | ||
|---|---|---|---|---|---|---|
| Funds | Funds | Funds | 2021 | 2020 | ||
| Note | £ | £ | £ | £ | £ | |
| Income and Endowments from: | ||||||
| Donations and Legacies | 2 | 77,645 | - | 52,713 | 130,358 | 94,476 |
| Investment Income | 3 | 6 | - | - | 6 | 57 |
| Other Income | 11,636 | - | - | 11,636 | 12,311 | |
| –––––––––––––– | –––––––––––––– | –––––––––––– | –––––––––––––– | –––––––––––––– | ||
| Total Income | 89,287 | - | 52,713 | 142,000 | 106,844 | |
| –––––––––––––– | –––––––––––––– | –––––––––––– | –––––––––––––– | –––––––––––––– | ||
| Expenditure on: | ||||||
| Charitable Activities | 4 | 69,125 | 3,600 | 2,179 | 74,904 | 75,169 |
| Governance Costs | 7 | 6,510 | - | - | 6,510 | 5,814 |
| –––––––––––––– | –––––––––––––– | ––––––––––– | –––––––––––––– | –––––––––––––– | ||
| Total Expenditure | 75,635 | 3,600 | 2,179 | 81,414 | 80,983 | |
| –––––––––––––– | –––––––––––––– | ––––––––––– | –––––––––––––– | –––––––––––––– | ||
| Net Movement in Funds | 13,652 | (3,600) | 50,534 | 60,586 | 25,861 | |
| Transfer between funds | (5,936) | 8,796 | (2,860) | - | - | |
| Balances Brought Forward | 419,931 | 9,447 | 18,231 | 447,609 | 421,748 | |
| –––––––––––––––– | –––––––––––––––– | –––––––––––– | –––––––––––––––– | –––––––––––––––– | ||
| Balances Carried Forward | 427,647 | 14,643 | 65,905 | 508,195 | 447,609 | |
| ═══════════ | ═══════════ | ═════════ | ═══════════ | ═══════════ |
The notes on pages 6 to 11 form part of these financial statements.
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4
HOPE CHURCH, LANCASTER
BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2021
| FOR THE YEAR ENDED 31 DECEMBER 2021 | FOR THE YEAR ENDED 31 DECEMBER 2021 | FOR THE YEAR ENDED 31 DECEMBER 2021 | FOR THE YEAR ENDED 31 DECEMBER 2021 |
|---|---|---|---|
| ___________________ | |||
| 2021 | 2020 | ||
| Note | £ £ |
£ £ |
|
| Fixed Assets | |||
| Tangible Assets | 8 | 345,091 | 339,133 |
| Current Assets | |||
| Debtors and Prepayments | 9 | 26,364 | 13,864 |
| Cash at Bank and In Hand | 141,207 | 98,854 | |
| ––––––––––––– | ––––––––––––– | ||
| 167,571 | 112,718 | ||
| Creditors: Amounts Falling Due Within One | |||
| Year | 10 | (4,467) | (4,242) |
| ––––––––––– | ––––––––––– | ||
| Net Current Assets | 163,104 | 108,476 | |
| ––––––––––––– | ––––––––––––– | ||
| Total Assets Less Current Liabilities | 508,195 | 447,609 | |
| –––––––––––––––– | –––––––––––––––– | ||
| Net Assets | 508,195 | 447,609 | |
| ═══════════ | ═══════════ | ||
| Funds | |||
| Unrestricted Funds | |||
| General Fund | 427,647 | 419,931 | |
| –––––––––––––––– | –––––––––––––––– | ||
| Designated Funds | 14,643 | 9,447 | |
| Restricted Funds | 11 | 65,905 | 18,231 |
| –––––––––––––––– | –––––––––––––––– | ||
| 508,195 | 447,609 | ||
| –––––––––––––––– | –––––––––––––––– | ||
| Total Funds | 12 | 508,195 | 447,609 |
| ═══════════ | ═══════════ |
These financial statements were approved by the trustees on 20 October 2022 and are signed on their behalf by:
T P Morris Treasurer
The notes on pages 6 to 12 form part of these financial statements.
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5
HOPE CHURCH, LANCASTER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
1. Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Hope Church, Lancaster meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Exemption from preparing a cash flow statement
The charity opted to adopt Bulletin 1 published on 2 February 2017 and have therefore not included a cash flow statement in these financial statements.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure 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.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.
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6
HOPE CHURCH, LANCASTER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992,to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £250.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Fixtures, fittings and equipment 25% Reducing balance Computer equipment 25% Straight line
Trade debtors
Are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of is established when there is objective evidence that the will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Gifts in kind
The Church benefits from many voluntary hours and unclaimed out of pocket expenses contributed by a large number of people. It would be impossible to place a value on these gifts in kind, for which we are extremely grateful.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity. Designated funds and unrestricted funds are resources set aside for specific purposes at the discretion of the trustees. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
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7
HOPE CHURCH, LANCASTER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
2. Income from donations and legacies
| Unrestricted | Designated | Restricted | Total | Total | |
|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | Funds | |
| 2021 | 2020 | ||||
| £ | £ | £ | £ | £ | |
| Regular giving and capital | |||||
| donations | 65,145 | - | 52,713 | 117,858 | 81,714 |
| Gift aid reclaimed | 12,500 | - | - | 12,500 | 12,762 |
| –––––––––––––– | –––––––––––––– | –––––––––––– | –––––––––––––– | –––––––––––––– | |
| 77,645 | - | 52,713 | 130,358 | 94,476 | |
| ══════════ | ══════════ | ════════ | ══════════ | ══════════ |
3. Investment Income
| Unrestricted | Total | Total | |
|---|---|---|---|
| Funds | Funds | Funds | |
| 2021 | 2020 | ||
| £ | £ | £ | |
| Interest receivable on bank deposits | |||
| 6 | 6 | 57 | |
| –––––––– | –––––––– | –––––––– | |
| 6 | 6 | 57 | |
| ══════ | ══════ | ══════ |
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8
HOPE CHURCH, LANCASTER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
4. Charitable Activities
| Unrestricted | Designated | Restricted | Total Funds | Total Funds | |
|---|---|---|---|---|---|
| Funds | Funds | Funds | 2021 | 2020 | |
| £ | £ | £ | £ | £ | |
| Wages and salaries | 37,995 | - | - | 37,995 | 39,722 |
| Staff pensions (Defined | |||||
| contribution) | 2,854 | - | - | 2,854 | 3,494 |
| Subscriptions | - | - | - | - | 724 |
| Staff Expenses and Costs | 453 | - | - | 453 | 1,156 |
| Facilities | |||||
| Cleaning Costs | 2,784 | - | - | 2,784 | 1,822 |
| Repairs | 1,798 | - | - | 1,798 | 2,451 |
| Water | 240 | - | - | 240 | 436 |
| Rates | 852 | 852 | 3,390 | ||
| Heat and Light | 2,832 | - | - | 2,832 | 2,198 |
| Telephone | 599 | - | - | 599 | 724 |
| Insurance | 3,002 | - | - | 3,002 | 2,971 |
| Manse Insurance | 115 | - | - | 115 | 270 |
| Administration | 1,141 | - | - | 1,141 | 1,175 |
| Discipleship | 873 | - | - | 873 | - |
| Mission | 886 | - | - | 886 | 1,135 |
| Pastoral Care | 291 | - | - | 291 | 667 |
| Sunday Service Costs | 2,461 | - | - | 2,461 | 356 |
| Youth and Children | 441 | - | - | 441 | 366 |
| Church Tithes and Special Gifts | 4,997 | 3,600 | 2,179 | 10,776 | 7,957 |
| Depreciation of Fixtures, Fittings | |||||
| and Equipment | 4,511 | - | - | 4,511 | 3,918 |
| Depreciation of Computer | |||||
| Equipment | - | - | - | - | 237 |
| –––––––––––––– | –––––––––––––– | ––––––––––– | –––––––––––––– | –––––––––––––– | |
| 69,125 | 3,600 | 2,179 | 74,904 | 75,169 | |
| ══════════ | ══════════ | ════════ | ══════════ | ══════════ |
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9
HOPE CHURCH, LANCASTER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________ 5. Staff costs
The aggregate payroll costs were as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Staff costs during the year were: | ||
| Wages and salaries including social security costs | 37,995 | 39,722 |
| Pension costs | 2,854 | 3,494 |
| –––––––– | –––––––– | |
| 40,849 | 43,216 | |
| ══════ | ══════ |
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| 2021 | 2020 | |||
|---|---|---|---|---|
| No | No | |||
| Charitable activities | 2 | 2 | ||
| ══════ | ══════ |
No employee received emoluments of more than £60,000 during the year
6 . Trustees Remuneration and Expenses
The Pastor and JLC Haxby, who were trustees of the Church, received payments from their employment from the Church as follows:
| om the Church as follows: | ||
|---|---|---|
| Wages and | ||
| Salaries | Pensions | |
| £ | £ | |
| A Gardner | 14,000 | 778 |
| JLC Haxby | 23,750 ══════ |
1,363 ══════ |
In addition the Pastor received reimbursement of travelling expenses amounting to £46.
7. Governance Costs
| Unrestricted | Total Funds | Total Funds | |
|---|---|---|---|
| Funds | 2021 | 2020 | |
| £ | £ | £ | |
| Accountancy Fees | 600 | 600 | 528 |
| Independent Examiner’s Fee | 250 | 250 | 250 |
| Conference Levy | 3,799 | 3,799 | 3,684 |
| CCPAS, CRB and Music Licence Fees | 1,603 | 1,603 | 1,084 |
| Bank Charges | 188 | 188 | 268 |
| Sundry fees | 70 | 70 | - |
| –––––––––– | –––––––––– | –––––––––– | |
| 6,510 | 6,510 | 5,814 | |
| ═══════ | ═══════ | ═══════ |
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10
HOPE CHURCH, LANCASTER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
8. Tangible Fixed Assets
| Freehold | Fixtures, | |||
|---|---|---|---|---|
| Land and | Fittings and | |||
| Buildings | Equipment | Total | ||
| £ | £ | £ | ||
| Cost | ||||
| At 1 January 2021 | 327,397 | 69,241 | 396,638 | |
| Additions | 4,163 | 6,631 | 10,794 | |
| Disposals | - | (325) | (325) | |
| –––––––––––––––– | ––––––––––––– | –––––––––––––––– | ||
| At 31 December 2021 | 331,560 | 75,547 | 407,107 | |
| ═══════════ | ═════════ | ═══════════ | ||
| Depreciation | ||||
| At 1 January 2021 | - | 57,505 | 57,505 | |
| Charge for the Year | - | 4,511 | 4,511 | |
| ––––––– | ––––––––––– | –––––––––––––– | ||
| At 31 December 2021 | - | 62,016 | 62,016 | |
| ═════ | ════════ | ══════════ | ||
| Net Book Value | ||||
| At 31 December 2021 | 331,560 | 13,531 | 345,091 | |
| ═══════════ | ═════════ | ═══════════ | ||
| At 1 January 2021 | 327,397 | 11,736 | 339,133 | |
| ═══════════ | ═════════ | ═══════════ | ||
| 9. | Debtors | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Tax Refund on Gift Aid | 25,500 | 13,000 | ||
| Gift Aid Specific Gifts | 864 | 864 | ||
| ––––––––––––– | ––––––––––––– | |||
| 26,364 | 13,864 | |||
| ═════════ | ═════════ | |||
| 10. | Creditors: Amounts Falling Due Within One Year | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Creditors | 4,217 | 3,992 | ||
| Accruals | 250 | 250 | ||
| ––––––––––– | ––––––––––– | |||
| 4,467 | 4,242 | |||
| ════════ | ════════ |
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11
HOPE CHURCH, LANCASTER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
___________________
11. Restricted Funds
| At 1 | Transfer | At 31 | |||
|---|---|---|---|---|---|
| January | between | December | |||
| 2021 | Income | Expenses | funds | 2021 | |
| £ | £ | £ | £ | £ | |
| Gifts for Specific Causes | 18,231 | 52,713 | (2,179) | (2,860) | 65,905 |
| ––––––––––––– | ––––––––––––– | ––––––––––––– | ––––––––––––– | ––––––––––––– | |
| 18,231 | 52,713 | (2,179) | (2,860) | 65,905 | |
| ═══════════ | ═════════ | ═════════ | ═════════ | ══════════ |
12. Analysis of Net Assets Between Funds
| Net Current | ||||
|---|---|---|---|---|
| Fixed | Bank | Assets / | Total | |
| Assets | (Liabilities) | |||
| £ | £ | £ | £ | |
| General Funds | 345,091 | 61,553 | 21,003 | 427,647 |
| Designated Funds | - | 14,643 | - | 14,643 |
| Restricted Funds | - | 65,011 | 894 | 65,905 |
| –––––––––––––––– | –––––––––––––– | –––––––––––––– | –––––––––––––––– | |
| 345,091 | 141,207 | 21,897 | 508,195 | |
| ═══════════ | ══════════ | ══════════ | ═══════════ |
13. Related party transactions
There were no related party transactions in the year.
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12