Charity Registration Number: 1002449
The Way Inn Christian Centre Trust Annual report and Accounts for the year ended 30 June 2021
Stewarts Accountants Limited 271 High Street Berkhamsted Herts HP4 1AA
## **The Way Inn Christian Centre Trust**
## **Contents**
|**Reports**||
|---|---|
|Legal and Administrative Information|2|
|Report of the Trustees|3|
|Independent Examiner’s report|5|
|**Accounts**||
|Consolidated Statement of Financial Activities|6|
|Balance sheet of the charity|7|
|Consolidated balance sheet|8|
|Principal accounting policies|9|
|Notes to the accounts|11|
Page 1
**The Way Inn Christian Centre Trust**
## **Legal and Administrative Information**
**Trustees** S Abramian (Chairman) J Fisher L Morgan **Registered Address** The Way Inn 268 High Street Berkhamsted Herts HP4 1AQ **Charity Registration Number** 1002449 **Accountants** Stewarts Accountants Limited 271 High Street Berkhamsted Herts HP4 1AA **Bankers** Clydesdale Bank Tempus 249 Midsummer Boulevard Milton Keynes MK9 1EA **Solicitors** Austins LLP 175 High Street Berkhamsted Herts HP4 3AP
Page 2
## **The Way Inn Christian Centre Trust**
## **Report of the Trustees for the Year ended 30 June 2021**
The Trustees present their statutory report together with the consolidated accounts of The Way Inn Christian Centre Trust for the year ended 30 June 2021.
The results for the year are presented in the form of a Statement of Financial Activities, which adopts the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” 2005.
## **Structure, governance and management**
The Way Inn Christian Centre Trust is an unincorporated trust governed by a trust deed dated 15 February 1991 and is registered under the Charities Act 2011, charity registration number 1002449.
## **Recruitment and appointment of trustees**
As per the constitution, Trustees appointed by the board are recruited according to the constitution via recommending bodies.
## **Objectives and Activities**
The principal charitable objective of The Way Inn Christian Centre Trust is the advancement of the Christian religion through the acquisition and maintenance of a centre in Berkhamsted which will express the social mission of the Christian Church.
## **Achievements and Performance**
The Trust has strived during the year to achieve its principal objectives by providing a centre which carried out _the social mission of the Christian Church of encouraging and caring for the community_ through the provision of:
- a Christian counselling service (this had to be discontinued due to lack of suitable space and is only just being reinstated slowly at this time)
- making Christian Literature available,
- and being a distribution centre for the DENS Food Bank for those in need in the community.
The funding of these activities has been mainly through its trading subsidiary which operates the Book and Gift shop and the operation of the town’s main Post Office.
In 2016 ‘The Trust’ particularly noticed an increase in loneliness and social isolation and a need was seen for a means and space to tackle this. In 2017 a new rental property was acquired by the ‘Trust’ to increase the ability to achieve its principal objective of ‘caring for the community’. A community centre was developed providing “Arts” and Well Being classes, an exhibition space for local and community art, as well as being an encouraging and safe place for people of all ages to meet, make connections or just to be themselves.
Known as Open Door the centre has worked with local and national charities and agencies to increase and create community awareness of, and thus to help in the reduction of, loneliness and social isolation.
The funding of these activities has been through:
- venue hire for local small businesses and clubs and
- providing exhibition space and workshops for and by local artists and societies/ organisations
Over lockdown with the help of the local community Open Door supported local families and the elderly and vulnerable in need, by providing over 4,000 meals whilst also continuing its art and well-being classes on-line.
Page 3
**The Way Inn Christian Centre Trust**
## **Report of the Trustees for the Year ended 30 June 2021 (continued)**
The Trust is continuing its on-line activities of art and well-being whilst developing some new face to face activities. It is also continuing to support the local community with the community pantry and provision of food in the centre as well as supporting local charities, in particular DENS, with the way it takes action to help the homeless and vulnerable.
## **Financial review**
The financial position of the Trust was satisfactory in 2020-21. Despite the net deficit for the year of (£2,215), coming as a result of UK Covid-19 restrictions, the Trust still retained a healthy closing balance on unrestricted funds of £402,692.
## **Reserves Policy**
The Trustees have established a policy to build up unrestricted reserves to a level to support the charity’s core expenditure for a minimum of a year.
## **Risk Management**
The Trustees examine the principal areas of the charity’s operations and consider the major risks faced in each of these areas.
In their opinion systems are being established which, under normal conditions, should allow these risks to be mitigated to an acceptable level in its day-to-day operations.
## **Trustees’ Responsibilities Statement**
The Trustees are required to prepare accounts for each financial year which give a true and fair view of the state of the affairs of the Trust and of the surplus or deficit of the Trust for that period. In preparing those accounts, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- follow applicable accounting standards, subject to any material departures disclosed and explained in the accounts;
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the Trust will continue in business.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Trust and to enable them to ensure that the accounts comply with the Charities Act 2011. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Trust and to prevent and detect fraud and other irregularities.
Signed on behalf of the Trustees:
S Abramian Trustee
Approved by the Trustees on 31 March 2022
Page 4
**The Way Inn Christian Centre Trust**
## **Independent Examiner’s Report**
I report on the accounts of the Trust for the year ended 30 June 2021, which are set out on pages 6 to 13.
## **Respective responsibilities of trustees and examiner**
The charity’s trustees consider that the audit requirements in the Charities (Accounts and Reports) Regulations 2008 (“the Regulations”) and section 144(2) of the Charities Act 2011 (“the Act”) do not apply. It is my responsibility to issue this report on those accounts in accordance with the terms of the Regulations.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the General Directions given by the Charity Commissioners under section 145(5)b of the Act. That 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 accounts.
## **Independent examiner’s 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 trustees have not met the requirements to ensure that:
- proper accounting records are kept in accordance with section 130 of the Act; and
- accounts are prepared which accord with the accounting records and comply with the accounting requirements of the Act and the Regulations; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
G D James ACCA Stewarts Accountants Limited 271 High Street Berkhamsted Herts HP4 1AA Date: 28 March 2022
Page 5
**The Way Inn Christian Centre Trust**
## **Consolidated Statement of Financial Activities for the Year Ended 30 June 2021**
|**Notes**
**General Fund**
**Incoming resources from generated**
**funds:**
Donations
Grants
Interest receivable
**Incoming resources from charitable**
**activities:**
Counselling receipts
Open Door
Rent received
**Resources expended**
Costs of generating funds
2
Charitable activities
2
Governance costs
2
(Deficit) / Surplus for the year
Net resources (utilised) / generated by
trading subsidiary
8
**Net movement in funds**
9
Property revaluation
**Balance brought forward**
**at 1 July 2020**
**Balance carried forward**
**at 30 June 2021**|**2021**
**£**
27,773
40,746
1,254|**2021**
**£**
19,455
46,636
5
-
6,688
6,685
79,469
69,773
9,696
(11,911)
(2,215)
-
404,907
402,692|**2020**
**£**
9,780
41,262
1,230|**2020**
**£**
49,328
15,000
1
-
54,392
15,450
134,171
52,272
81,899
(4,849)
77,050
-
327,857
404,907|
|---|---|---|---|---|
Page 6
## **The Way Inn Christian Centre Trust**
## **Balance Sheet of the Charity as at 30 June 2021**
|**Notes**
**Tangible Fixed Assets**
Freehold property
4
Investments
5
**Current Assets**
Debtors
6
Cash at bank and in hand
**Creditors**: amounts falling due
within one year
7
**Net current liabilities**
**Total assets less current**
**liabilities**
**Creditors**: amounts falling due
after one year
Bank Loan
Mortgage loan
**Total net assets**
**General Fund**
9
Signed on behalf of the Trustees:|**2021**
**£**
-
69,407
69,407
(30,787)
-
-|**2021**
**£**
290,000
2
290,002
(
38,620
328,622
-
328,622
328,622|**2020**
**£**
-
71,941
71,941
43,017)
-
-|**2020**
**£**
290,000
2
290,002
28,924
318,926
-
318,926
318,926|
|---|---|---|---|---|
||||||
S Abramian Trustee
Approved by the Trustees on 31 March 2022
Page 7
## **The Way Inn Christian Centre Trust**
**Consolidated Balance Sheet as at 30 June 2021**
|**2021**
**Notes**
**£**
**Fixed Assets**
Intangible assets
3
Tangible assets
4
**Current Assets**
Stocks
25,000
Debtors
6
30,939
Cash at bank and in hand
76,946
132,885
**Creditors**: amounts falling due
within one year
7
(39,443)
**Net current assets**
**Total assets less current**
**liabilities**
**Creditors**: amounts falling due
after one year
Bank loan
-
Mortgage loan
-
**Total net assets**
**General Fund**
9|**2021**
**2020**
**£**
**£**
16,355
292,895
309,250
25,000
-
87,140
112,140
(18,972)
93,442
402,692
-
-
-
402,692
402,692|**2020**
**£**
18,120
293,619
311,739
93,168
404,907
-
404,907
404,907|
|---|---|---|
Page 8
**The Way Inn Christian Centre Trust**
## **Principal Accounting Policies for the Year Ended 30 June 2021**
## **Basis of accounting**
The accounts have been prepared under the historical cost convention and in accordance with applicable Accounting Standards and the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities” 2015.
## **Basis of Consolidation**
The statement of financial activities and balance sheet consolidate the accounts of the charity and its trading subsidiary up to the balance sheet date.
## **Investments**
Investments are included in the accounts at the nominal cost of the shares to the donors.
## **General Fund**
The general fund consists of those amounts which the Trustees may use in furtherance of the charitable objectives of The Way Inn Christian Centre Trust at their own discretion.
No restrictions have been placed on any donations received by the Trust.
## **Donations**
Donations are credited to the income and expenditure account in the year in which they are received. Any recoverable tax is shown in the year of receipt from H M Revenue & Customs.
## **Investment Income**
Investment income is credited to the income and expenditure account in the year in which it is received.
## **Resources Expended**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
## **Freehold Property**
It is the policy of the Trustees to ensure that the fabric of the property is maintained in good condition. The property was last professionally revalued on 26 September 2019 and no further depreciation is considered necessary for this financial year.
## **Intangible Fixed Assets**
The Post Office licence, which does not have a defined life span, is being amortised over forty years at a rate of 2.5% per annum.
## **Tangible Fixed Assets**
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:
Fixtures and fittings and equipment 20% straight line basis
Page 9
## **The Way Inn Christian Centre Trust**
## **Principal Accounting Policies for the Year Ended 30 June 2021 (continued)**
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items.
## **Cash flow**
The accounts do not include a cash flow statement because the group (i.e., the charity and its subsidiary), as a small reporting entity is exempt from the requirement to prepare such a statement under Financial Reporting Standard 1 “Cash flow statements”.
## **Deferred Taxation**
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
Page 10
**The Way Inn Christian Centre Trust**
## **Notes to the Accounts for the Year Ended 30 June 2021**
## **1 Trustees’ remuneration**
No Trustee received any remuneration in respect of their services during the period.
|**2 Total Resources Expended**
**Costs of generating funds:**
Rates & other overheads
People costs
Bank charges
Interest Payable
**Charitable Activities:**
Open Door
Donations
Outreach
**Governance Costs:**
Accountant’s fee
Exceptional debt write off
**Total Resources Expended**
2021
2020
**3 Intangible Fixed Assets – Licence**
**Cost**
At 1 July 2020 and 30 June 2021
**Amortisation**
At 1 July 2020
Charge for the year
At 30 June 2021
**Net Book Values**
At 30 June 2021
At 30 June 2020|Staff
Other
Support
Costs
Direct Costs
Costs
£
£
£
-
22,263
-
21,083
-
4,748
-
450
-
-
312
-
21,083
23,025
4,748
-
15,584
-
-
4,079
-
-
-
-
-
19,663
-
-
1,254
-
-
-
-
-
1,254
-
21,083
43,942
4,748
-
52,272
-
**Group**
**2021**
**£**
70,630
52,510
1,765
54,275
16,355
18,120|**2021**
**Total**
**£**
22,464
25,831
450
312
48,856
15,584
4,079
-
19,663
1,254
-
1,254
**69,773**
**52,272**
**2020**
**£**
70,630
50,745
1,765
52,510
18,120
19,885|
|---|---|---|
||||
Page 11
**The Way Inn Christian Centre Trust**
## **Notes to the Accounts for the Year Ended 30 June 2021 (continued)**
## **4 Tangible Fixed Assets**
|Charity and Group
Group
Freehold
Fixtures,
land and
fittings and
buildings
equipment
£
£
**Cost**
At 1 July 2020
290,000
49,389
Additions
-
-
Revaluation
-
-
At 30 June 2021
290,000
49,389
**Depreciation**
At 1 July 2020
-
45,770
Charge for the year
-
724
Disposals
-
-
At 30 June 2021
-
46,494
**Written Down Values**
At 30 June 2021
290,000
2,895
At 30 June 2020
290,000
3,619|**Group**
**Total**
**£**
339,389
-
-|
|---|---|
||339,389|
||
45,770
724
-
46,494
292,895|
||
293,619|
The freehold property was last valued by Messrs Aitchison Raffety on 26 September 2019 at an open market valuation of £290,000.
## **5 Investments**
|**Investments**|||||
|---|---|---|---|---|
||**2021**||**2020**||
||**£**||**£**||
|At cost||2||2|
The investment is the whole of the issued share capital of The Way Inn (Berkhamsted) Limited which was received by way of a gift to the Trust.
## **6 Debtors**
|**Debtors**||||||
|---|---|---|---|---|---|
||**Charity**|||**Group**||
||**2021**|**2020**|**2021**||**2020**|
||**£**|**£**|**£**||**£**|
|Trade debtors|-|-|-||-|
|The Trustees are satisfied as|to the value of the debtors.|||||
Page 12
**The Way Inn Christian Centre Trust**
## **Notes to the Accounts for the Year Ended 30 June 2021 (continued)**
## **7 Creditors: amounts falling due within one year**
|Bank loan
Other loan
Trade creditors
Social security and other taxes
Other creditors
Way Inn (Berkhamsted) Limited|**Charity**
**2021**
**2020**
**£**
**£**
-
1,980
-
5,000
-
-
-
-
4,141
1,231
26,646
34,806
30,787
43,017|**Group**
**2021**
**£**
-
3,598
5,058
-
4,141
26,646
39,443
|
**2020**
**£**
1,980
8,800
5,059
584
2,549
-
18,972|
|---|---|---|---|
## **8 Net income of trading subsidiary**
The charity has one wholly owned subsidiary, Way Inn (Berkhamsted) Limited, which is incorporated in the United Kingdom. The company runs the Post Office in Berkhamsted together with a Christian bookshop. A summary of the subsidiary company’s trading results is shown below. Accounts have been filed with the Registrar of Companies.
|**Profit and Loss Account**
Turnover
Cost of Sales
(
Gross Profit
Administration
Other operating income
Net profit / (loss)
Taxation
Retained in subsidiary|**2021**
**£**
207,214
209,862)
(2,648)
(35,472)
26,209
(11,911)
-
(11,911)||**2020**
**£**
222,139
(195,497)
26,642
(41,580)
10,089
(4,849)
-
(4,849)|
|---|---|---|---|
|||||
## **9 General Fund**
|Balance at 1 July 2020
Property revaluation
Net incoming resources
for the year
Balance at 30 June 2021|**Charity**
**2021**
**2020**
**£**
**£**
318,926
237,027
-
-
9,696
81,899
328,622
318,926
|**Group**
**2021**
**2020**
**£**
**£**
404,907
327,857
-
-
(2,215)
77,050
402,692
404,907|
|---|---|---|
Page 13