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2022-12-31-accounts

Registered Charity 701133

Penwortham Free Methodist Church

Legal and Administrative Information for the year ending 31 December 2022

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Section A Reference and administration details
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Charity name
Working name
Registered charity number
Trustees:
Elder (non trustee)
Church Adminstrator
Church Treasurer
Bankers:
Solicitors:
Independent examiner:
Penwortham Free Methodist Church
Kings Church
701133
Leadership Team
Chair - Mike Giddings (Lay Delegate)
Zena Antell (Deputy Lay Delegate)
Ian Simpson
Tony Morton-Jones
Penny Carey
Sarah Wylie
Matthew Moll
Rev Kevin Jones
Carol Salisbury (until June 2022)
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
(Page 1)

Section B Structure, Governance & management The controlling charity document Icharity Number 7011331 was approved and established as the Scheme for the regulation of the Charity on 21, 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 Ilate5t version dated 2019 is available to read at htt freemethodist.or resources l 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 Ipartnersl elect the Official Church Board who are also the charity's trustees and as such are elected at the Annual Society IPartnersl 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 2022 King's Church began to meet in person, whilst continuing to broadcast service on YouTube for those unable to attend, throughout 2022. We are thankful to our Service and worship leaders who work on a rota basis and to our IT team for making this possible. Life groups (house groups) have been re-established following covid. There are 4 evening groups and one day time group, as well as a group for Chinese ex-students and friends of King's Church that meets on Zoom. We have also begun to refocus our mission program around invitational events. The first of which was well attended on Pancake Day 2022. Invitation and welcome have been the focus for church growth throughout the year. The pastoral committee meet monthly, in person or on Zoom during the year, to keep the needs of members in mind and flag up needs for pastoral care. Meetings in the School were sparsely attended over Christmas 2021, but have grown over the year. Many more now attend in person than online. IA united open-air service was held in the park with the other local churches on Penwortham gala day.) The King's Church job club celebrated their IO, anniversary. We have run the steps to employment course and the CAP money course. The relationship with the job centre continues to be strong. The Toddlers has continued running on Fridays though it now runs one session 9.30 to 11 rather than the 2 sessions pre covid19. 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 each quarter as a Full board of trustees and, as Mission and Vision Team IMVTI and Church Action team ICATI, monthly. The meetings follow the new governance structure agreed in 2018. In addition, the Church Nominations Team met to identify persons suitable for serving on the Church Leadership Team and to fill any vacancies on the board of trustees. Meetings for prayer are held in small groups (Tripletsl and on a Sunday evening. They were often held outdoors in gardens in the summer months. A leader's prayer meeting has been established. Global links (Our overseas support and giving arml held several Zoom meetings with overseas partners, as well as inviting preachers we are linked with to participate in Sunday services. Page 2

It has been a challenging year but we are gathering again after covid and all the community and mission arms of the church are functioning again. A large proportion of the membership is involved in the mission and ministry of the church.. from visiting the sic- to helping run job club, parents and toddlers, youth and kids clubs- to visiting asylum seekers,. and participating in the Sunday service. Now that the church is meeting regularly at the Priory Academy, we find that the number of regular attenders is about 75% of the amount attending before Covid19. We continue to offer an online, as well as a physical worship service, for those who cannot attend. Section D Review of Community Benefits Three of our people regularly help with the food bank. One of our members chairs the Churches Together meetings. The CAP job club continued to its "steps to employment" eight-week course, offering 4 full courses as well as the CAP money course throughout the year. The ministry to asylum seekers continues with home visits and help with English and form filling. The international students Eroup continued on Teams, thouEh online connections with students abroad were often difficult. At Christmas our choir sang Carols at the annual street market, and members went Carol singing at a local residential home. Community groups such as Youth Club, Children's Club and pre-school have grown throughout the year. A monthly women's friendship and craft event has been successfully started. 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 all aspects of safety VSV covid and general security. There is a fire evacuation plan in place and a fire drill is carried out annually. We keep our risk assessment current with the school and the Town council. We have liaised with the school to ensure safe protocols for 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 equipment stored at various locations 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 is complemented by our safeguarding policy. Budgetary control is actively pursued by preparing an annual budEet 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 budget. Page 3

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 rnoved to November 2022 the Church 8oard Tru5tee5 requested a summary presented to the congregation to coincide with the Accounts being posted to the Charitie5 Commi55ion. The Financial Report has been written by Matthew Moll on behalf ol the Church Administration Team and the Board of Trustees. Furth&r detailed copy of the audited accounts for year ending 315t December 2022 can be requested from Matthew Moll the Church Treasurer. 2022 Statement of Financial Activities- Headline Year 2017 £120,753 2018 £104.195 2019 £100,099 2020 £69,983 2021 £67,466 2022 £77,864 Income youth worl lob and restriaed fund5 Expenditure Bèlance Carried Forward £112,276 +£8,477 £76,000 £99,776 +£4,419 £80,0(M) £97,211 +£3,744 £83,700 £66,147 +£3,932 £87,600 £61,853 +£5,613 £93,213 £81,515 -£3,651 £88,147 (note we used £ID,OOOfor reserves After recording the highest income in 2017 in r￿￿nt times of the church, the income fell during 2018,19,20 & 21 has risen again slightly in 2022. However, we still recorded a deficit of £3,651 though in reality this is £5,066 when restritted funds are excluded. (note the church aims to keep approximately £50,000 in reserves $0 we have a least six months to cover salaries and rentals) Breakdown in Expenditure Salaries Church Accommodatlon IRentals, equipment) Church Ministrles Minibus Restrirted glvlng Governance, audit, Insurance depre£latlon etc Other Gift5 and rrthe5 to UK& Global Charities 7.3% Pensions, Nletc Manse & equipment) Church Holiday, Job Club 7.3% 40.7% 19.1% 6.6% 2.0% 7.8% 9.1Y. Notes The Salaries covered employment ol a Pastor (full tirne rninus manse rent value), an admin secretary110 Hours per weekl, the latter only lor half the year. Church Accommodation Renrals included Priory Academy for Sunday Services. Penwortham Community Centre for the Church Offices, Job Club and CAP Moneyj Prayer Meetin Leadership meetin& Family Group and other Meetings at the centre. Penwortham Young Peoples Centre for Toddlers, Kid5 Club and Youth Club. The Minibu5 W35 returned to the road in May. Church Ministrie5 covers 311 the ministry group5 in the church. examples include, Pre School, Children's Work, Me55y Church, Schools 8nd Youth Work, Alpha Course, Evangelism 8nd Discipleship. CAP Job Club and CAP Money. Music 8nd Medi8 and Internation81 Students. Summary: Thank you to the Finance Team lin 20221.. Treasurer Matthew Moll, Mary Young, Tony Cockerarn and Neil Towers. Thank you to everyone at King's Church who have given faithfully to the work each year. Thank5 to God lor His amazing provision. Page 4

Penwortham Free Methodist Church Annual Accounts for the year ended 31 December 2022

(Registered charity number 701133)

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Section G Statement of Financial Activities
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Voluntary Income :
Donations & Grants
Tax Refunds
Interest
Office rent
Charitable Activities :
Ministry Income
Designated Income
Total Incoming Resources
Resources Expended
Charitiable Activities
Staff Costs
Church Personnel Expenses
Manse Costs
Church Services
Operating Expenses
Ministries
Gifts and Tithing
Designated Giving Expenditure
Depreciation
Governance Costs
Total Resources Expenses
Net Incoming Resources for the year
Net Resources Expended
Balances brought forward 1.1.22
Balances carried forward 31.12.22
Notes
1
2
3
4
Unrestricted
funds
£
58,403
9,409
753
1,000
780
0
70,345
31,158
1,563
5,385
6,816
10,077
5,932
7,487
1,092
5,901
75,411
-5,066
273,282
268,216
Unrestricted
funds
£
58,403
9,409
753
1,000
780
0
70,345
31,158
1,563
5,385
6,816
10,077
5,932
7,487
1,092
5,901
75,411
-5,066
273,282
268,216
Restricted
funds
£
7,519
7,519
6,004
6,004
1,515
11,749
13,264
Restricted
funds
£
7,519
7,519
6,004
6,004
1,515
11,749
13,264
TotalFunds
31.12.22
£
58,403
9,409
753
1,000
780
7,519
77,864
31,158
1,563
5,385
6,816
10,077
5,932
7,487
6,004
1,092
5,901
81,415
1,515
-5,066
285,031
281,480
Total Funds
31.12.21
£
54,871
9,189
821
0
413
2,097
67,391
31,864
939
1,057
3,975
3,513
3,445
7,195
1,519
2,508
5,838
61,853
5,035
279,418
284,453

(Page 5)

Penwortham Free Methodist Church

Annual Accounts for the year ended 31 December 2022 (Registered charity number 701133)

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Section H Balance sheet
Notes 2022 2021
£ £
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Fixed Assets
Tangible Fixed Assets
Moorhey Drive
5
Equipment and Refurbishments
5
Current Assets
Debtors, Prepayments and accrued Income
7
Cash at Bank and in Hand
Accruals
8
Net Current Assets
Total Assets less Current Liabilities
Funds
Unrestricted
General Funds
Designated Funds
Property
6
Building
9
Restricted Funds
10
Total Funds
180,000
1,053
181,053
2,673
98,718
101,391
964
100,427
281,480
88,216
180,000
10,171
3,093
281,480
180,000
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

The notes on page 7 to 10 form part of these accounts

Declaration

I approve the above accounts and sign on behalf of the Trustees.

Mike Giddings : Chair of the Trustees

(Page 6)

Section I Notes to the accounts

1
2
3
4
UK staff Costs
Stipends, salaries & NHI (Pastor)

Admin Secretary
Pension Costs

Operating Expenses
Office Rent
Other Rent Charges
Advertising
Recruitment
Others

Ministries
Catering
Minibus
Evangelism
Job Club
Media / Worship
Kids Club
King's Kids
Jewels
Sunday
Children
Various
Governance Costs
FM Conference Payments
Liability Insurance
Independent Examiner
DBS & Miscellaneous
2022
£
26,942
2,560
1,656
31,158
5,640
3,710
128
331
268
10,077
320
1,158
840
1,597
829
589
313
45
104
0
137
5,932
3,118
1,940
500
343
5,901
2021
£
25,316
5,022
1,526
2021
£
25,316
5,022
1,526

31,864
1,880
1,305
291
0
37
3,513
243
0
300
2,140
643
0
0
0
95
24
3,445
4,305
745
500
287
5,837

(Page 7)

Section I Notes to the accounts (continued)

5 Tangible Fixed Assets
Cost or Valuation
at 1 January 2022
Additions
at 31 December 2022
Unrestricted
Freehold
Property
£
180,000
180.000
Equipment
£
4,002
368
4,370
Minibus Total
£
£
7,232
191,234
368
7,232
191,602
Minibus Total
£
£
7,232
191,234
368
7,232
191,602
191,602

Accumulated depreciation and replacement provisions

Capital equipment is depreciated on a straight line basis over four years.

at 1 January 2022
charge for year
at 31 December 2022
at 31 December 2022
-
-
180,000
£
2,225
1,092
3,317
1,053
£
7,232
7,232
£
9,457
1,092
10,549
181,053

6 Property Valuation

The Property of 42 Moorhey Drive was re-valued in 2011 and has been shown at its valuation of £180,000.

7 Debtors and Prepayments

Analysis of debtors and prepayments falling due within one year

8
9
Prepayments
Insurance paid in advance
Manse Insurance
Gift Aid due
Minibus Licance & Insurance
Other Prepayments
Creditors and Accruals
Independent Examiner's Fee
Rent
Other Creditors
Designated Building Fund
Balance at 1.1.22
Restricted Giving in Year
Balance at 31.12.22
2022
£
845
334
730
487
277
2,673
2022
500
317
147
964
2022
10.171
0
10,171
2021
£
764
320
929
0
269
2,282
2021
500
582
409
1,491
2021
10,171
10,171
2021
£
764
320
929
0
269
2,282
2021
500
582
409
1,491

(Page 8)

Section I
Notes to the accounts(continued)
Section I
Notes to the accounts(continued)
Section I
Notes to the accounts(continued)
10 Restricted Funds
Balance at 1.1.22
Income
Paid out during year
-
Balance at 31.12.22
2022
1,578
7,519
6,004

3,093
2021
1,000
2,097
-1,519
1,578

(Page 9 )

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 FRS 102

The accounts have been prepared on an income and expenditure basis in accordance with Financial Reporting for Small Entities (FRS 102) as directed from 1st January 2016.

(Page 10)

Pe￿￿'Orth￿Th Fret Trltthodist Church eDdent E%anJin¢r' s ort to the Trustees of Penworthxm Free Thlethodist Chiirch Inde We reNrt on the accAiunts (Jt thc charAty t'or the Ye￿ end￿ 31 December 2022 set orj pagei 1106. Charity numbcr 701 133. Respective Tpsponsibilitie¥ of trultees and eKanbin¢r the cbarity'5 Ixustees you are reiponsible for the preparalion of Ihc 8ccount1￿ you C￿￿$]der that the audit Irquit¢m¢llt of s¢vtion 144 12) vf ¢h¢ Churiti¢S Art 101 i (the a￿) do￿ Lot &pply and thai an independenl e￿￿)￿tion is ne£q1￿. 11 is QUT r¢srK)n$ibiliry to a) examine the acc(Mmts (undcr scclion145 of IhL Act):. bj tu follDW thL PtoLthlurt$ laid doivn in the Gcftcral Directions giN"en by the Cbarity Con]tni58ioneTS under 5e¢tioll145 (d) vf tl)e Ait: and ) to stat¢ Thqictlici" paTticular mth¢rb to our attgntson. B•si5 of indepelldent exAmlner's report Our CKemination w&$ CArrAed out in accordance with the (ien¢ral Directions %iTr'en the Charity Commigsioners exminalion iTh¢ludes a review of tho ￿CoUnting r¢wrd8 kept by the -baritv and a comparisurh (If th¢ ilCLQ)unLN pre%ent￿ with those fecords. It also includcs ￿nsidcra11on of any unusual items or distilosur&5 irk th¢ acwunts. and s¢¢kiftg explanaiion5 frhm you as trysteL% (K)n￿mIng any such mattcr5. Th PTti(Axlure& U]￿e[l&k￿l do kn(Jt yr()vide &ll ihe evidencc that ￿'0￿la bc rl￿Uj￿d an a￿liL alld consequently we do not express an audit opinicn on the accounts. Independent exanthier's report lh¢ (x)uYS¢ of our examlnalioL no ftyaiter has come to our &ttLyJti0￿ .' i) ivhich ￿V¢S ￿S rcasonablc caus¢ to bclicvc thaL in anv n&t¢nal rl￿￿¢£*. the trustees have nol fftet the rwvirements to ensurc that oi proper &1¢¢￿1)ntir.8 re.¢￿Ta9 irc. l-epl. (ill Accnnlxnce with ￿ctl{li) 1.In i?f the 2tJ11 AL.t)' b) ilWUlltS dr¥ prwaTed bvhith iigrcL willi IILL &knCOUllIii￿Tr rcLoIds and collwly witli th¢ accounting rcquirements of tke Art" or 2) ￿ whicN in our Dpinion, artenrion should be druwn in ￿￿er w vnable a prn￿ under%i3nd.;ng of The accounis to be reached. Milhliel J Siillivan FFA FTA FIPA FiE)unriul Avwvnt(uilb 24 Kiogswa} Wesl Pcnwonha PRI OLA 10 Ma). £023