## **Penwortham Free Methodist Church** Registered Charity 701133
## **Legal and Administrative Information for the year ending 31 December 2021**
**Section A Reference and administration details** Charity name **Penwortham Free Methodist Church** Working name Kings Church Registered charity number 701133 Trustees: Leadership Team Chair - Mike Giddings (Lay Delegate) Tony Cockeram Matthew Moll Mike Giddings Moira Smith Tony Morton-Jones Zena Antell Sarah Wylie Elder (non trustee) Rev Kevin Jones Church Adminstrator Carol Salisbury Church Treasurer Matthew Moll Bankers: CAF Bank Limited 25 Kings Hill West Malling Kent ME19 4JQ Solicitors: Napthens 7 Winckley Square Preston PR1 3JD Independent examiner: 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 dated 2019 is available to read at https://freemethodist.org.uk/resources/) The church is 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 engaged in ministry, form the Leadership Team. One of the elected Board of Trustees serves as 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 2021
Due to the Covid 19 restrictions, King’s Church continued throughout the first months of 2021 to broadcast its service online. Our IT teacher James Banks was instrumental in facilitating the online services. A small team coordinated by Pastor Kevin Jones, prepared the message, led the services and recorded music on a weekly basis for the broadcasts. These were broadcast live on YouTube.
There was an additional Expository Bible Study broadcast by Pastor Jones throughout the period of lockdown.
Members were kept encouraged and informed by pastoral phone calls, by online Zoom prayer meetings, and prayer triplets, by regular news letters, and through the prayer chain and WhatsApp group.
The pastoral committee met monthly on Zoom during the pandemic to keep in touch with the needs of the church. The Lock Down committee also met regularly via Zoom to plan a safe recommencement once that was possible.
Meetings in the School opened briefly in May 2021, but with the rise of Covid cases locally closed again until September 5[th] , the start of the school year. (An open-air service and BBQ was held to relaunch physical meetings on the August bank Holiday weekend.)
The King’s Church CAP job club met online and ran the ‘steps to employment’ programme over the Spring and Summer months.
Once the church reopened in September, the Pre-School reformed on Fridays running one session from 9.30 to 11am and has been very successful. The Friday evening Children’s and Youth club also reopened and have been growing steadily. With up to 30 children and 15 youth attending.
The Trustees continued to meet on Zoom, and in person, 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.
Global links held several Zoom meetings with overseas workers. A team met in the park with asylum seekers over the time of lockdown.
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It has been a challenging year but thanks to technology and James and Carol’s ability to work it we have still been able to function as a church.
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.
Now that the church is meeting regularly at the Priory Academy, we find that the number of regular attenders is about 2/3 of the amount attending before Covid19. We continue to offer an online, as well as a physical worship service, for those who cannot attend or are continuing to isolate.
## Section D Review of Community Benefits
- Lockdown greatly restricted our community presence in 2021.
- The Friday Zoom quiz night continued through lockdown.
- Two of our members regularly help with the food bank and one of our members chairs the churches together meetings.
- The CAP job club continued to offer online ‘money club’ and ‘steps to employment’ courses. Recommencing in person in September.
- The ministry to asylum seekers met outdoors in small groups for language study and friendship as restriction allowed.
- The international students group continued on Teams, though online connections with students abroad were often difficult.
- At Christmas we had a choir at the annual street market singing Carols.
- We ran an online ‘Wellbeing’ course which was well attending and received.
- Community groups such as Youth Club, Children’s Club and pre-School began to meet again in September.
- A successful craft event for parents and children was held during the Christmas period.
## 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 work closely with the school property manager, to ensure covid and general security. There is a fire evacuation plan in place and a fire drill is carried out annually.
The lock down task force liaised with the school doing a risk assessment to ensure safe protocols for reopening public worship. The Trustees are aware of risks and take appropriate steps to control these risks and mitigate any impact they might have; Including where mandated the wearing of masks, social distancing and hand sanitising. 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.
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Section F Review of Financial Performance
## **King’s Church Annual Financial Report for 2022**
The Financial Report is usually presented at the Annual General Meeting but as this has been moved to November 2022 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 2021 can be requested from Matthew Moll the Church Treasurer.
## **2022 Statement of Financial Activities – Headline**
|Year|2016|2017|2018|2019|2020|**2021**|
|---|---|---|---|---|---|---|
|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|£67,466|
|Expenditure|£96,336|£112,276|£99,776|£97,211|£66,147|£61,853|
|Balance|-£1,578|+£8,477|+£4,419|+£3,744|+£3,932|+£5,613|
|Carried
Forward
reserves|£78,000|£76,000
(note we
used
£10,000 for
purchase of
minibus)|£80,000|£83,700|£87,600|£93,213|
After recording the highest income in 2017 in recent times of the church, the income fell during 2018,19,20 & 21 but we recorded a small surplus of £5,613 leaving us with reserves of £93,213. (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**
**UK &**
**Global**
**Charities**|
|---|---|---|---|---|---|---|---|
|55.8%|10.3%|5.8%|0.0%|2.6%|10.6%|4.0%|11.0%|
## **Notes**
The Salaries covered employment of a Pastor (full time minus manse rent value), an admin secretary (10 Hours per week)
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.
The Minibus was SORN for the full year.
It should be noted that minimal rental was paid after lockdown commenced in March 2020 up to spring 2021. 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 2021): Treasurer Matthew Moll, Mary Young, Tony Cockeram and Neil Towers. Thank you to everyone at King’s Church who have given faithfully to the 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 2021**
_**(Registered charity number 701133)**_
|**Section G**
**Statement of Financial Activities**|**Section G**
**Statement of Financial Activities**|
|---|---|
|**Unrestricted**
**Restricted**
**_Notes_**
**fund**
**funds**
**£**
**£**
**Incoming resources**
_Voluntary Income :_
Donations & Grants
54,871
Tax Refunds
9,189
Interest
821
Manse Rent
0
Office Rent
0
Misc. Income
75
_Charitable Activities :_
Ministry Income
413
Designated Income
2,097
______
______
**Total Incoming Resources**
65,369
__2,097
**Resources Expended**
**Charitable activities**
Staff Costs
**3.2**
31,864
Church Personnel Expenses
940
Manse Costs
1,057
Church Services
3,974
Operating Expenses
**4**
3,513
Ministries (inc catering)
**5**
3,446
Gifts and Tithing
7,195
Designated Giving Expenditure
1,519
Depreciation (after Donations/Grants w/off)
2,508
**Governance Costs**
**6**
5,837
_______ ____
**Total Resources Expended**
_60,334
1,519
**Net Incoming Resources for the year**
5,035
578
**Net Resources Expended**
**Balances brought forward at 1 January 2021** 268,247 11,171
**Balances carried forward at 31 December 2021273,28211,749 **|**Total Funds**
**Total Funds**
**31 December**
**31 December**
**2021**
**2020**
**£**
**£**
54,871
55,106
9,189
10,013
821
1,177
0
0
0
1,000
75
75
413
1,385
2,097
1,227
_______
______
_67,466
69,983
31,864
31,892
940
1,245
1,057
2,509
3,974
2,471
3,513
3,592
3,446
6,161
7,195
7,940
1,519
1,323
2,508
2,808
5,837
6,110
_______
______
_61,853
_66,051
5,613
4,028
-98
279,418
275,486
**285,031 279,418**|
The notes on pages 7 to 11 form part of these accounts
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## **Penwortham Free Methodist Church Annual Accounts for the year ended 31 December 2021**
## _**(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**|**2021**
**£**
180,000
0
1,777
181,777
2,282
102,463
______
104,745
1,491
_______
103,254
**285,031**
93,282
180,000
10,171
1,578
______
**285,031**||**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.**
Mike Giddings : Chair 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**
|Stipends, salaries and NHI - (Pastor)
Stipends, salaries &NHI (Family Worker)
Youth Worker
Admin Secretary
Pension costs
|**2021**
**£**
25,316
0
5,022
_1,526
_
31,864|**2020**
**£**
22,643
0
0
7,269
1,980|
|---|---|---|
|||_
31,892|
No employees earned over £50000 p.a. in 2021 or 2020 Average number of employees in the year was 2
|**4**
**Operating Expenses**
Office Rent
1,880
Other Rent Charges
1,305
Promotion
291
Internet/Zoom
37
Other Expenses
____0
3,513
**5**
**Ministries**
Catering
243
Emergency/Hardship and Contingency Fund
300
Job Club
2,140
Media/Worship
644
Stewarding
0
Toddlers
0
Children
95
Youth
0
Jewels
24
Miscellaneous
____0
3,446
**6**
**Governance Costs**
FM Conference payments
4,305
Liability Insurance
745
Independent Examiner
500
DBS & Miscellaneous
__287
5,837|1,880
900
500
180
132|
|---|---|
||__
3,592
112
650
2,083
1,389
79
12
288
149
0
120|
||__
6,161
4,424
744
500
__442
6,110|
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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 2021
180,000
_4,002
7,232
at 31 December 2021
180,000
4,002
7,232|**Total**
**£**
191,234|
|---|---|
||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 2021
charge for year
at 31 December 2021
**7.3 Net book values**
at 31 December 2021|--
_
-
_
**__**_**___**
180,000
|1,225
5,724
1,000
1,508
2,225
7,232
**_____**
_**___**
1,777
0|6,949
__2,508
__9,457
181,777|6,949
2,508|
|---|---|---|---|---|
|||||9,457|
## **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
Total
**9. Creditors and Accruals**
Independent Examiners fee
Property Rent
Advertising
Other Creditors
Total|2021
£
764
320
929
269
_____
**2,282**
2021
£
500
582
0
409
_____
**1,491**
|2020
£
721
309
669
292
_____
**1,991**
2020
£
500
108
500
236
____
**1,344**|2020
£
721
309
669
292
_____
**1,991**|
|---|---|---|---|
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## **Section I**
## **Notes to the accounts (continued)**
## **10 Restricted Funds**
|**10 Restricted Funds**||||
|---|---|---|---|
|Balance at 1.1.21
Income
Paid out during year
Balance at 31.12.21
**11 Designated Building Fund**
Balance at 1.1.21
Balance at 31.12.21|2021
£
1,000
2,097
(1,519)
**_1,578**
2021
£
10,171
**10,171**|2020
£
1,096
1,227
(1,323)||
|||**1,000**
2020
£
10,171|**1,000**|
||**_**
|||
|||**10,171**||
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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.
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## **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 2021 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 FTA FIPA Financial Accountants 24 Kingsway West Penwortham Preston PR1 0LA
10/03/2022
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