**Penwortham Free Methodist Church** Registered Charity 701133
## **Legal and Administrative Information for the year ending 31 December 2020**
|**Section A**|**Reference and administration details**|
|---|---|
|Charity name
Working name
Registered charity number
Trustees:
Bankers:
Solicitors:
Independent examiner:
|**Penwortham Free Methodist Church**
King’s Church
701133
Leadership Team
Chair - Gordon Wardman (Lay Delegate)
Beryl Clarkson
Matthew Moll
Mike Giddings
Moira Smith
Tony Morton-Jones
Elder (non trustee) Rev Kevin Jones
Church Administrator Carol Salisbury
Church Treasurer Matthew Moll
CAF Bank Limited
25 Kings Hill
West Malling
Kent
ME19 4JQ
Napthens
7 Winckley Square
Preston
PR1 3JD
Michael J Sullivan Financial Accountants
24 Kingsway West
Penwortham
Preston
PR1 0LA|
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## Section B Structure, Governance & management
The controlling charity document (Charity Number 701133) was approved and established as the Scheme for the regulation of the Charity on 21[st] April 1983 this scheme also recognises the role of the ‘Book of Discipline’ of the Free Methodist Church of North America as amended from time to time (latest version is dated 2015 and is now available to read on www.freemethodistchurch.org.uk). The church is also part of the GB Conference of the Free Methodist Church and is under the discipline of the Conference as described in the Book of Discipline.
The Church members (partners) elect the Official Church Board who are also the charity’s trustees and as such are elected at the Annual Society (Partners) Meeting and these together with the Church employees form the Leadership Team. One of the elected Board members is the Church’s Lay Delegate and as such represents the Church at the Annual Free Methodist UK Conference.
## Section C Trustees Annual Report for the year 2020
Rev D Kevin Jones was inducted as pastor on January Saturday 18th 2020 and began regular ministry on Sunday 19th. He was also appointed as the Chairman of the Missions Vision Team.
We were sad to lose the Edwards, (CMC and family Worker) the Spenders (Treasurer, Delegate and Youth Worker) and the Beatties (Church Secretary) who have all served the church faithfully for years. Also, the death of founder member Jack Kerridge was a sad loss to all.
Lockdown began in March 22nd so all church activities had to be moved to YouTube and Zoom for the rest of the year. Numbers watching the YouTube services were encouraging, with people tuning in from far and near. A Zoom fellowship chat room was opened after the services.
Two homegroups continued to meet weekly over Zoom.
Kevin recorded a weekly midweek bible study on YouTube.
The Trustees continued to meet on a regular basis. The meetings followed the new structure agreed in 2018.
In addition, the Church Nominations Team met to identify persons suitable for serving on the Church Leadership Team to fill the vacancies which had occurred during the year.
Meetings for prayer were held outdoors in small groups as restrictions allowed in the summer months.
The lockdown taskforce was established to manage the COVID-19 restrictions affecting church activities.
Global links held several Zoom meetings with overseas workers.
It has been a challenging year but thanks to the wonders of modern technology and James and Carol’s ability to work it we have still been able to function as a church.
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There have been many other opportunities offered to members of the church to meet/serve on a spiritual / social level (Sunday service activities and preparation, home groups, prayer meetings, mission presentations, rambles, meals etc.). These are in addition to the activities serving the community mentioned in Section D.
## Section D Review of Community Benefits
Lockdown greatly restricted our community presence in 2020.
A Friday Zoom quiz night was established.
Two members continue to help the food bank.
CAP still offered online money club and steps to employment courses.
Jewels ministry to asylum seekers met outdoors in small groups for language and friendship as restriction allowed.
The international students group continued on Teams.
At Christmas we had a Carols in cars service in priory academy car park which was well attended by the community.
We ran an online Alpha before Christmas .
## Section E Review of risk managements
As the church uses a local High School for its Sunday services, rather than a purpose-built building of our own, we are in a position where we need to be constantly vigilant on a week by- week basis to identify any changes to the facilities that we use on the premises and to work closely with the school property manager. There is a fire evacuation plan in place and a fire drill is carried out annually. The Trustees are aware of risks and take appropriate steps to control these risks and mitigate any impact they might have; these include an annual fire evacuation drill. Insurance policies for the buildings are in place and reviewed from time to time to ensure that valuables are insured adequately. Changes in the assets are also examined to ensure that the insurances are correctly set. All people working with children and vulnerable adults have DBS clearance, (renewed every three years) and this complemented by a safeguarding policy. Budgetary control is actively pursued by preparing an annual budget and by studying the monthly financial statements prepared by the treasurer, when necessary, spending controls are introduced in addition to regular controls to keep spending within the actual income. Appr
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Section F Review of Financial Performance
## **King’s Church Annual Financial Report for 2020**
The Financial Report is usually presented at the Annual General Meeting but as this has been moved to November 2021 the Church Board Trustees requested a summary presented to the congregation to coincide with the Accounts being posted to the Charities Commission.
The Financial Report has been written by Matthew Moll on behalf of the Church Administration Team and the Board of Trustees.
Further detailed copy of the audited accounts for year ending 31st December 2020 can be requested from Matthew Moll the Church Treasurer.
## **2020 Statement of Financial Activities – Headline**
|Year|2016|2017|2018|2019|**2020**|
|---|---|---|---|---|---|
|Income
Includes designated
giving/grants for
youth work, job
club,
and restricted funds
e.g. Church Holiday)|£94,758|£120,753|£104,195|£100,099|£69,983|
|Expenditure|£96,336|£112,276|£99,776|£97,211|£66,147|
|Balance|-£1,578|+£8,477|+£4,419|+£3,744|+£3,932|
|Carried
Forward
reserves|£78,000|£76,000
(note we
used
£10,000 for
purchase of
minibus)|£80,000|£83,700|£87,600|
After recording the highest income in 2017 in recent times of the church, the income fell during 2018,19 & 20 but we recorded a small surplus of £3,932 leaving us with reserves of £87,600. (note the church aims to keep approximately £50,000 in reserves so we have a least six months to cover salaries and rentals)
## **Breakdown in Expenditure**
|**Salaries**
Including
Pensions,
NI etc|**Church**
**Accommodation**
(Rentals,
equipment)|**Church**
**Ministries**|**Minibus**|**Restricted**
**giving**
i.e.
Church
Holiday, Job
Club|**Governance,**
**audit,**
**insurance**
**depreciation**
**etc**|**Other**
(inc.
Manse &
equipment)|**Gifts**
**and**
**Tithes to**
**Global**
**Links**|
|---|---|---|---|---|---|---|---|
|42.1%|8.2%|9.8%|0.4%|2.4%|9.2%|15.9%|12.0%|
## **Notes**
The Salaries covered employment of a Pastor (full time minus manse rent value), an admin secretary (10 Hours from September) and contracted administrative services to Beattie Consultancy (Meriel Beattie 10 hours until September).
Church Accommodation Rentals included Priory Academy for Sunday Services.
Penwortham Community Centre for the Church Offices, Job Club and CAP Money, Prayer Meeting, Leadership meeting, Family Group and other meetings at the centre. Penwortham Young Peoples Centre for Toddlers, Kids Club and Youth Club.
It should be noted that minimal rental was paid after lockdown commenced in March 2020. Church Ministries covers all the ministry groups in the church, examples include, Pre School, Children’s Work, Messy Church, Schools and Youth Work, Alpha Course, Evangelism and Discipleship, CAP Job Club and CAP Money, Music and Media and International Students.
## **Summary**
Thank you to the Finance Team (in 2020): Treasurer Matthew Moll, Mary Young, Meriel Beattie, Tony Cockeram and Neil Towers. Thank you to everyone at King’s Church who have given faithfully to work each year. Thanks to God for His amazing provision.
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## **Penwortham Free Methodist Church**
## **Annual Accounts for the year ended 31 December 2020**
## _**(Registered charity number 701133)**_
|**Section G**|**Statement of Financial**|**Statement of Financial**|**Activities**|||
|---|---|---|---|---|---|
|||||**Total Funds**|**Total Funds**|
|||**Unrestricted**|**Restricted**|**31 December**|**31 December**|
||**_Notes_**|**fund**|**funds**|**2020**|**2019**|
|||**£**|**£**|**£**|**£**|
|**Incoming resources**||||||
|_Voluntary Income :_||||||
|Donations & Grants||53,056||53,056|66,375|
|Tax Refunds||12,063||12,063|15,357|
|Interest||1,177||1,177|1,244|
|Manse Rent||0||0|6.418|
|Office Rent||1,000||1,000|0|
|Misc. Income||75||75|3,388|
|_Charitable Activities :_||||||
|
Ministry Income||1,385||1,385|3,388|
|Designated Income|||1,227|1,227|3,929|
|||______|______|_______|______|
|**Total Incoming Resources**||68,756|__1,227|_69,983|100,099|
|**Resources Expended**||||||
|**Charitable activities**||||||
|Staff Costs|**3.2**|31,892||31,892|33,294|
|Church Personnel Expenses||1,245||1,245|565|
|Manse Costs||2,509||2,509|1,371|
|Church Services||2,471||2,471|10,451|
|Operating Expenses|**4**|3,592||3,592|4,965|
|Ministries (inc catering)|**5**|6,161||6,161|18,228|
|Gifts and Tithing||7,940||7,940|12,600|
|Designated Giving Expenditure|||1,323|1,323|4,785|
|Depreciation (after Donations/Grants w/off)||2,808||2,808|3,541|
|
**Governance Costs**|**6**|6,110||6,110|6,555|
|||_______|____|_______|______|
|**Total Resources Expended**||_64,728|1,323|_66,051|_96,355|
|**Net Incoming Resources for the year**||4,028||4,028|4,600|
|Net Resources Expended|||-96|-96|-856|
|**Balances brought forward at 1 January 2020**||264,219|11,267|275,486|271,742|
|**Balances carried forward at 31 December 2020268,247**|||**11,171**|**279,418**|**275,486**|
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## **Penwortham Free Methodist Church Annual Accounts for the year ended 31 December 2020**
_**(Registered charity number 701133)**_
|**Section H**
**Balance sheet**||||
|---|---|---|---|
|_Notes_
**Fixed Assets**
Tangible Fixed Assets
Moorhey Drive
**7.4**
Minibus (After Donations)
Equipment and Refurbishment (Less Grants received)
**7.3**
**Current Assets**
Debtors, repayments and Accrued Income
**8**
Cash at Bank and in Hand
**Accruals**
**9**
**Net Current Assets**
**Total Assets less Current Liabilities**
**Funds**
Unrestricted
General Funds
Designated Funds
Property
Building
**10**
Restricted Funds
**11**
**Total Funds**|**2020**
**£**
180,000
1,508
2,777
184,285
1,991
94,486
______
96,477
1,344
_______
_95,133
**279,418**
88,247
180,000
10,171
1,000
______
**279,418**|||
The notes on page 7 to 11 form part of these accounts
## **Declaration**
**I approve the above accounts and sign on behalf of the Trustees.**
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## **Section I**
## **Notes to the accounts**
## **Note 1 Basis of preparation**
## **1 Basis of accounting**
These accounts have been prepared on the basis of historic cost in accordance with Accounting Standards, Accounting and Reporting by Charities – Statement of Recommended practice (SORP 2015 FRSSEE) and the Charities Act 2011. There has been no change to the accounting policies since last year.
- **2 Accounting policies** _Please see Section I Note (1) for the detailed accounting policies applied by the charity._
## **3.1 Independent Examiners Fees**
The amount payable for the year will be £500 .
## **3.2 UK Staff costs**
|**2020**
**£**
Stipends, salaries and NHI - (Pastor)
22,643
Stipends, salaries &NHI (Family Worker)
Youth Worker
0
Admin Secretary
7,269
Pension costs
_1,980
_
31,892
No employees earned over £50000 p.a. in 2020 or 2019
Average number of employees in the year was 2
**4**
**Operating Expenses**
Office Rent
1,880
Other Rent Charges
900
Advertising
500
Recruitment
0
Zoom Costs
180
Other Expenses
__132
3,592
**5**
**Ministries**
Catering
112
Chinese Ministries
0
Minibus
1,219
Evangelism
60
Emergency and Contingency Fund
650
Job Club
2,083
Media/Worship
1,389
Stewarding
79
Toddlers
12
Children
288
Youth
149
Miscellaneous
__120
6,161
**6**
**Governance Costs**
FM Conference payments
4,424
Liability Insurance
744
Independent Examiner
500
DBS & Miscellaneous
__442
6,110|**2019**
**£**
0
11,349
16,193
4,320
1,432|
|---|---|
||_
33,294|
||
1,295
1,890
896
__884
4,965
910
545
3,479
18
3,611
187
1,560
4,879
2,991
48|
||__
18,228|
||
4,824
738
500
__493
6,555|
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## **Section I**
## **Notes to the accounts (continued)**
## **7 Tangible fixed assets**
## **7.1 Cost or valuation**
|**Unrestricted**
**Equipment**
**Minibus**
**Freehold Property /Refurb.**
**£**
**£**
**£**
at 1 January 2020
180,000
23,696
7,232
Old Equipment written off
22,796
180,000
900
7,232
Additions
_3,102
at 31 December 2020
180,000
4,002
7,232|**Total**
**£**
210,928
_22,796
188,132
__3,102
191,234|
|---|---|
The Property is shown at its market revaluation amount. Old equipment with a nil value has been totally written off
## **7.2 Accumulated depreciation and replacement provisions**
Capital equipment is depreciated on a straight line basis over four years. .
|at 1 January 2020
--
Accumulated charge written off
charge for year
at 31 December 2020
-
**7.3 Net book values**
**__**_**___**
at 31 December 2020
180,000|23,021
22,796
225
_1,000
_1,225
**_____**
2,777|3,916
3,916
1,808
5,724
_**___**
1,508|26,937
22,796
4,141
__2,808
__6,949
184,285|26,937
22,796|26,937
22,796|
|---|---|---|---|---|---|
||_
_
||||4,141
2,808|
||||||6,949|
## **7.4 Property Valuation**
The property of 42 Moorhey Drive was re-valued in 2011 and has been shown at its valuation of £ 180,000.
## **8 Debtors and prepayments**
## **Analysis of debtors and prepayments falling due within one year.**
|Prepayments
Insurance paid in advance
Manse Insurance
Gift Aid Due
Other prepayments/debtors
Loan to Church Members
Total
**9. Creditors and Accruals**
Independent Examiners fee
Property Rent
Advertising
Other Creditors
Total|2020
£
721
309
669
183
0
_____
**1,882**
2020
£
500
108
500
236
_____
**1,344**
|2019
£
720
298
1,640
1,603
550
(Written off)
____
**4,811**
2019
£
500
1,349
588
____
**2,437**|
|---|---|---|
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## **Section I**
## **Notes to the accounts (continued)**
## **10 Restricted Funds**
|**10 Restricted Funds**||||
|---|---|---|---|
|Balance at 1.1.20
Income
Paid out during year
Balance at 31.12.20
**11 Designated Building Fund**
Balance at 1.1.20
Restricted Giving in Year
Balance at 31.12.20|2020
£
1,096
1,227
(1,323)
**_1,000**
2020
£
10,171
_____0
**10,171**|2019
£
1,990
3,891
4,785
**1,096**
2019
£
10,133
_38
**10,171**|2019
£
1,990
3,891
4,785|
||||**1,096**|
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## **Section J Statutory Policy Statements to the accounts**
## **1 ACCOUNTING POLICIES**
## **INCOMING RESOURCES**
Grants, donations and investment income are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources and any conditions for performance, delivery or receipt are met; and the trustees are reasonably certain they will receive it; and the trustees are reasonably certain that the monetary value can be measured.
Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resources and related expenditure are reported gross in the SOFA.
Incoming resources from tax claims are included on the SOFA at the same time as the gifts to which they relate.
## **EXPENDITURE AND LIABILITIES**
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
Governance costs include payments to FMC (UK), insurance and the costs of the preparation and examination of statutory accounts.
## **ASSETS**
Tangible fixed assets have this year been capitalised if they can be used for more than one year. They are valued at cost less provision for depreciation over a 4 year period.. Several small items of equipment have been treated as revenue expenses and included in Pastoral Expenses
## **2 ADDITIONAL DISCLOSURES**
The charity does not have any material commitments not provided for in the accounts.
The charity has not given any guarantees to third parties that could be called on at year end
Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions imposed.
## **3 FRSSE 2015**
The accounts have been prepared on an income and expenditure basis in accordance with Financial Reporting for Small Entities (FFSE) as directed from 1st January 2015.
Page 10
## **Penwortham Free Methodist Church Independent Examiner’s report to the Trustees of Penwortham Free Methodist Church**
We report on the accounts of the charity for the year ended 31 December 2020 which are set out on pages 1 to 6. Charity number 701133.
## **Respective responsibilities of trustees and examiner**
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 and that an independent examination is needed.
It is our responsibility to a) examine the accounts (under section 145 of the Act); b) to follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145 (a) of the Act: and c) to state whether particular matters have come to our attention.
## **Basis of independent examiner’s report**
Our 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 we do not express an audit opinion on the accounts.
## **Independent examiner’s report**
In the course of our examination, no matter has come to our attention: :
1) which gives us reasonable cause to believe that, in any material respect, the trustees have not met the requirements to ensure that
a) proper accounting records are kept (in accordance with section 130 of the 2011 Act); and
b) accounts are prepared which agree with the accounting records and comply with the accounting requirements of the Act; or
2) to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Michael J Sullivan FFA FFTA FIPA Financial Accountants 24 Kingsway West Penwortham Preston PR1 0LA
30/03/2021
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