**Charity Number: 1049144**
## **Grace Church**
**Trustees’ Report and Financial Statements**
**For The Year Ended 31 March 2021**
## **GRACE CHURCH**
## **CONTENTS**
|Trustees and Professional Advisors|1|
|---|---|
|Trustees’ Annual Report|2|
|Independent Examiner’s Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9|
|Notes to the Financial Statements|10|
## **GRACE CHURCH**
## **TRUSTEES AND PROFESSIONAL ADVISERS**
|**Registered charity name**|Kings Church Bolton|Kings Church Bolton||
|---|---|---|---|
|**Working name**|Grace Church|||
|**Address**|The Grace Centre|||
||Somerset Road|||
||Bolton|||
||BL1 4NE|||
|**Charity number**|1049144|||
|**Trustees**|Mrs E Cameron||Secretary|
||Mr J J McGregor||Treasurer|
||Mr R|Edirisinghe|Chairman|
||Mrs S Bradbrook|||
||Dr S Prout (appointed 17/9/20)|||
||Mrs E Spielmann|||
||Mr M|Taylor||
|**Independent examiner**|N Mason FCA DChA|||
||MHA|Moore and Smalley||
||Richard House|||
||Winckley Square|||
||Preston|||
||PR1 3HP|||
-1-
## **GRACE CHURCH**
## **TRUSTEES ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2021**
The trustees have pleasure in presenting their report and the unaudited financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
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 in October 2019.
## **Reference and Administrative Details**
Reference and administrative details are shown in the schedule of trustees and professional advisers on page 1 of the financial statements.
## **The Trustees**
The trustees are shown on page 1. Dr S Prout joined as a Trustee in September 2020.
## **Structure, Governance and Management**
The charity is governed by a trust deed dated 30 April 1995.
Recruitment and appointment of new trustees is delegated to the Leadership Team of the church, in accordance with the trust deed.
“The powers of appointment and removal of Trustees shall be vested in the Elders or other governing body of Kings Church Bolton or its successor for the time being.”
(Trust Deed section 10a)
The day to day activity of the charity is directed by the Eldership Team. There is also a Leadership Team which sits under the Elders to assist them in their role. The Trustees appoint a salary committee to review the trust salaries each year. The Salary Committee reports to the full Trustee team in line with the church policy.
The Trustees have a responsibility to report to the Elders on any legal or financial risk they perceive. Outside of those areas the Elders have full responsibility for assessing and acting on the activities of the church. To this end the Elders meet bi-weekly to review our public meetings, pastoral issues and financial position among many other ad hoc issues.
## **Objectives, Activities and Public Benefit**
The objects of the trust are by such means as are charitable:
- 1 To advance the Christian Religion, to proclaim and further the Gospel of God and His Son, the Lord Jesus Christ and to preach and teach the Christian Faith.
- To provide assistance for aged persons and persons in condition of need, hardship or distress, arising therefrom, whether in connection of housing or accommodation or shelter or any other purpose (whether by way of loan, gift, the provision of accommodation or shelter or in any other way) trustees should be entitled to give assistance to applicants who are members of Kings Church Bolton or such other religious institution or body having purposes similar thereto as the trustees shall from time to time decide.
-
- To advance education, whether of children (above or below compulsory school age) or adults.
-2-
## **GRACE CHURCH**
## **TRUSTEES ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2021**
- 2 In pursuance of the foregoing objects (but not otherwise) the trustees may:
- Cause to be written and printed or otherwise reproduced and circulated, whether gratuitously or otherwise, periodicals, magazines, books, leaflets, or other documents, films, records, tapes or discs.
- To provide teaching and other educational provision to the Church and the Community
- Foster and undertake research into any aspect of the objects of the Trust and its works and disseminate the results of any research.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future objectives.
## **Achievements and performance**
## **Summary of the Main Activities Undertaken**
## **Attendance**
Due to the Covid pandemic, the church services of Grace Church were largely online (YouTube) with a small number invited to the church building from September 2020. Hope Church is in Westhoughton has been exclusively online services (using Zoom). The church membership is approximately 110-120 people attending Grace Church and 45 people at the Hope Church in Westhoughton.
## **Hope Church, Westhoughton**
Hope Church has met online each Sunday morning throughout the financial year ended 31 March 2021. This year Hope church have given some financial help to those in need and also supported Urban outreach and other organisations in practical help for the community. Online support has been given to those who used to attend the toddlers group at Hope church. The finances of the Hope Church and Grace Church are still tied together, but their income and expenditure are itemised separately.
Grace Church is responsible for the lease of the Hope Community Centre building, however this is currently under review with Bolton Council and Hope Church have not used the centre since March 2020. The Community Centre, was previously used by several local groups however this has not happened during the financial year. Mark, the Hope Church leader, is employed by Grace Church for five days per week (full-time) and prior to this year the income from the Community Centre supported two of these days. As a result of the reduced income from Centre bookings, Mark has been on part time furlough since November 2020.
## **Giving**
The regular giving from active members of Grace Church has increased and Hope Church has decreased. Grace Church generated donations excluding Gift Aid of £170,574 (2020:£154,373) and Hope Church generated donations excluding Gift Aid of £34,712 (2020: £35,701).
## **Building Works**
The Grace Centre building continues to be an important asset to the life of the church and has had a number of small changes made to allow for live streaming of church services on Sunday mornings. The building has been utilised by a number of community groups during the year when government restrictions have allowed. The Trust successfully applied for a number of grants during the financial year to complete a refurbishment of the kitchen at the Grace Centre. The work commenced on the kitchen refurbishment in the next financial year (May 2021) and was largely complete by September 2021.
-3-
## **GRACE CHURCH**
## **TRUSTEES ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Toddler Group**
The toddler group which is usually held weekly at the church building for local families was put on hold due to Covid. They ran a few sessions on line, however they saved their in person launch for April 2021.
## **33@GC**
The youth group which is usually held on Friday nights, for young people who may or may not attend the Church on a Sunday, moved to online sessions throughout the financial year. The sessions included quizzes, challenges and some bible teaching. The in person sessions returned to the Grace Centre in April 2021.
## **Senior Citizens Club**
The senior citizens club also stopped meeting due to Covid. The attendees were regularly contacted throughout the pandemic to see how they were. The in person meetings returned in the September 2021.
## **Nativity Morning**
The local community was invited to attend an online craft and nativity morning, where craft packs were collected before the event from the church and then used at home during the live session.
## **Bolton Urban Outreach**
This is a Bolton wide charity that supports vulnerable young people in a variety of ways. Urban Outreach have Church members regularly donate items of food for their food bank project which has continued throughout the pandemic, with members dropping off food at various locations. The church supported the Christmas dinner on Jesus initiative again to ensure that those who could not afford Christmas lunch were provided with all the items needed.
## **Streetsoccer**
Dave Kruczek (Lead Elder) continues to sit on the Trustees Board of Streetsoccer Academy. Street Soccer Academy is a professional service provider that specialises in the rehabilitation and reintegration of people with complex and multiple needs. They work on behalf of some of the nation’s hardest to reach groups within our communities including, people with homeless related issues, ex-offenders, those recovering from addictions, mental health conditions and disabilities and the long-term unemployed.
## **Zambia**
We have had around 50 households involved in sponsoring ‘Streetlife’, a charity in Zambia that provides a loving home for children who have lost one or more parents. The sponsorship enables the children to attend primary and secondary school, providing an education they would not otherwise be able to afford.
Help and guidance for employment is provided for all the children who have graduated from school. For these children, a Scholarship fund has now been set up to support employment, education and training.
## **Relationship with Other Organisations**
Grace Church belongs to Newfrontiers, ‘a worldwide family of churches together on a mission’, with over 800 churches worldwide. Grace Church belongs to the Christ Central sphere within Newfrontiers. Rob Coleman, an employee and Elder at Grace Church, also leads a team of 3 people who plan North-West meetings and activities and help provide pastoral care and direction for leaders of those churches.
-4-
**TRUSTEES ANNUAL REPORT**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **GRACE CHURCH**
Grace Church is also a member of the Evangelical Alliance. Locally, the Church participated in Heaton and Halliwell Churches Together and has good working relationships with other local churches.
Grace Church is part of the Bolton 2030 group. This group of churches in Bolton are working together to help Bolton to be a better place to live in and work in by 2030. A number of our members are part of the task and finish groups. A couple of our members helped host online conferences to help equip other churches during lockdown, these were on the topics of children’s work and churches having an online presence.
## **Safeguarding**
Grace Church completed an online safeguarding training refresher for our youth and children’s work leaders this year, and also started work on an international safeguarding policy, to cover our work in Zambia. Events for children and young people were mainly run online due to the coronavirus pandemic, although a few sessions were able to take place in person, as and when restrictions were relaxed. The safeguarding co-ordinators worked with group leaders to ensure both online and in person sessions worked within safeguarding policies and best practice, as well as completing covid risk assessments and using safety measures as needed. The coordinators only dealt with one safeguarding issue during this period, involving a vulnerable adult, partly due to the lack of face to face contact with members; however the coordinators, leadership team and youth and children’s leaders did their best to ensure contact was maintained, and support offered if necessary, to all those in the church during the lockdown periods.
## **Response to Covid 19**
The Trust responded quickly to Covid 19 to carefully manage the ongoing expenditure and to try and protect the income of the Trust. Four members of staff were put on furlough as the closure of the buildings meant that their roles were temporarily not required. The furlough scheme from the government provided income to help the Trust meet the wages of the staff. The Trust approached all members to encourage regular giving online and a crisis fund was started for members to contribute into to help others who may experience hardship over the coming months.
The Grace Centre was closed to user groups for the first half of the financial year and therefore rental income reduced. A small number of user groups returned in September for a period and good communication has been kept in place with user groups almost all groups have returned now that regulations allow. Risk assessments have been taken to ensure that the buildings meet Covid secure standards for those entering in to the buildings.
The Trust’s response to Covid and continued income from members has given the Trustees confidence that the Trust will be able to continue to operate over the next 12 months.
## **Financial Review**
The financial statements are set out on pages 8 to 21.
Total incoming resources on general unrestricted funds were £205,740 (2020: £173,109). Restricted donations and grants of £50,073 (2020: £63,697) were also received and are detailed in the financial statements.
Total resources expended, excluding the depreciation charge on the building revalued in 2015, were £241,074 (2020: £233,922) as shown on the Statement of Financial Activities on page 8. A majority of the expenditure is spent on staff costs, donations, building maintenance and to other individuals and organisations.
The net result for the year was a deficit of £162,840 (2020: £207,801 deficit). Excluding the depreciation charge of £213,354 there is a net surplus of £50,514 (2020: £5,503 surplus).
-5-
## **GRACE CHURCH**
## **TRUSTEES ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Reserves Policy**
At 31 March 2021 the charity held unrestricted free reserves (excluding fixed assets) of £54,436 (2020: £18,501) and restricted reserves of £18,971 (2020: £10,637).
The Trustees consider the charity’s free reserves level should be at least three months staff costs which equates to approximately £26,200 (calculated as 25% of staff costs for this year, see note 4). The free reserves/net current assets for this year is above this target.
## 14/12/2021
Approved by the trustees on and signed on their behalf by:
............................................................................. **Trustee – Mr J J McGregor** EPC? ............................................................................. — **Trustee - Mrs S Bradbrook**
-6-
## **GRACE CHURCH**
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2021**
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2021 which are set out on pages 8 to 21.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the company as required by section 130 of the Act; or 2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
............................................................................. Nicola Mason, FCA, DChA MHA Moore and Smalley Richard House Winckley Square Preston PR1 3HP
14/12/2021 Date: ………………………
-7-
## **GRACE CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|
**Note**
**Income from:**
Donations and legacies
2
Other trading activities
3
**Total**
**Expenditure on:**
Charitable activities
4
**Total**
**Net income/(expenditure)**
Transfers between funds
**Net movement in funds**
Funds brought forward at 1 April 2020
**Funds carried forward at 31 March 2021**|**Unrestricted**
**funds**
**£**
202,144
3,596
**205,740**
372,391
**372,391**
**(166,651)**
118
**(166,533)**
**1,078,755**
**912,222**|**Restricted**
**funds**
**£**
50,073
-
**50,073**
46,262
**46,262**
**3,811**
(118)
**3,693**
**10,637**
**14,330**|**Total for**
**year**
**ended**
**31 March**
**2021**
**£**
**252,217**
**3,596**
**255,813**
**418,653**
**418,653**
**(162,840)**
**-**
**(162,840)**
**1,089,392**
**926,552**|**Total for**
**period**
**ended**
**31 March**
**2020**
**£**
218,795
18,011|
|---|---|---|---|---|
|||||236,806|
|||||444,607|
|||||444,607|
|||||(207,801)
-|
|||||(207,801)
1,297,193|
|||||1,089,392|
-8-
## **GRACE CHURCH**
## **BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|**AS AT 31 MARCH 2021**||||||||
|---|---|---|---|---|---|---|---|
|||||||**Total**|**Total**|
|||**Unrestricted**||**Restricted**||**funds**|**funds**|
|||**funds**||**funds**||**2021**|**2020**|
||**Note**|**£**||**£**||**£**|**£**|
|**Fixed assets**||||||||
|Tangible assets
|10|853,146|853,146|-|-|**853,146**|1,060,254|
|||**853,146**|**853,146**|**-**|**-**|**853,146**|1,060,254|
|**Current assets**||||||||
|Debtors|11|7,788|7,788|1,229|229|**9,017**|1,590|
|Cash at bank and in hand||50,213|213|17,742|742|**67,955**|32,092|
|||**58,001**|**58,001**|**18,971**|**18,971**|**76,972**|33,682|
|
**Creditors:**Amounts falling due within one||(3,566)||-|-|**(3,566)**|(4,544)|
|year|12|||||||
|
**Net current assets**
||**54,435**|**54,435**|**18,971**|**18,971**|**73,406**|29,138|
|**Total net assets**
||**907,581**|**907,581**|**18,971**|**18,971**|**926,552**|1,089,392|
|**Funds**||||||||
|**Unrestricted funds**||||||||
|General fund|13|54,435|435|-|-|**54,435**|18,501|
|Fixed asset reserve|13|853,146||-|-|**853,146**|1,060,254|
|
**Total unrestricted funds**||**907,581**|**907,581**|-|-|**907,581**|1,078,755|
|
**Restricted funds**|13|-|-|18,971|71|**18,971**|10,637|
|
**Total funds**||**907,581**|**907,581**|**18,971**|**18,971**|**926,552**|1,089,392|
## 14/12/2021
These financial statements were approved by the trustees on and are signed on their behalf by:
................................................................ ............................................................... **Trustee – Mrs S Bradbrook Trustee – Mr J J McGregor**
-9-
**NOTES TO THE FINANCIAL STATEMENTS**
## **GRACE CHURCH**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **1 Accounting policies**
## **General information and basis of preparation**
Grace Church is charitable organisation registered in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are as disclosed in the Trustees’ Report.
The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Funds**
## **Unrestricted funds**
Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The charity currently has no designated funds.
## **Restricted funds**
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in note 11.
## **Income recognition**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
-10-
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **GRACE CHURCH**
## **1 Accounting policies (continued)**
## **Income recognition (continued)**
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.
Income from trading activities includes trading activities to raise funds for the charity. Income is received in exchange for rental of church buildings and is recognised when entitlement has occurred.
Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Investment income is earned through holding assets for investment. It comprises bank interest only. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method.
## **Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services, including those costs of an indirect nature necessary to support them.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
The costs of pension contributions to certain employees defined contribution schemes are expensed in the year they are payable.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
## **Tangible fixed assets**
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. The cost of minor additions or those costing below £300 are not capitalised.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
Fixtures and fittings 25% per annum, straight line Computer equipment 33% per annum, straight line Freehold property and 10% per annum, straight line alterations
-11-
**GRACE CHURCH**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **1 Accounting policies (continued)**
## **Debtors and creditors receivable/payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Financial instruments**
Financial instruments are classified and accounted for, according to the substance of the contractual arrangements, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest of the charity after deducting all of its liabilities.
## **Employee benefits**
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
## **Tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes
## **Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **Judgements and key sources of estimation uncertainty**
There have been no significant judgements (apart from those involving estimates) made in the process of preparing the financial statements.
There have been no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
-12-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**2**
**Income from donations and legacies**
**Unrestricted**
**funds**
**£**
**_Grace Church_**
General donations
109,225
Donations- Mission family support
-
Donations - Zambia
-
Donations - Stewardship
**-**
Donations - Scholarship fund
-
Donations - Streetlife fund
-
Donations - Go Zambia
-
Donations - Building development
-
Donations - Kitchen refurbishment
15,500
Gift aid
21,175
Furlough grants
6,842
**152,742**
**_Hope Church_**
General donations
34,712
Gift aid
6,663
Furlough grants
8,027
**49,402**
**202,144**
Total for 2020
155,098|**Restricted**
**funds**
**£**
-
4,130
7,402
-
4,150
23,087
7,080
-
-
4,224
-
**50,073**
-
-
-
**-**
**50,073**
63,697|**Total**
**2021**
**£**
**109,225**
**4,130**
**7,402**
**-**
**4,150**
**23,087**
**7,080**
**-**
**15,500**
**25,399**
**6,842**
**202,815**
**34,712**
**6,663**
**8,027**
**49,402**
**252,217**|**Total**
**2020**
**£**
93,417
13,905
8,179
5,900
5,794
22,317
4,661
200
-
-
20,888|
|---|---|---|---|
||||175,261|
||||35,701
7,833|
||||43,534|
||||218,795|
||||**218,795**|
-13-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **2 Income from donations and legacies**
## **Prior year note**
|**_Grace Church_**
General donations
Donations- Mission family support
Donations - Zambia
Donations - Stewardship
Donations - Scholarship fund
Donations - Streetlife fund
Donations - Zambia apartments
Donations - Go Zambia
Donations - Building development
Gift aid
**_Hope Church_**
General donations
Gift aid
Total for 2019 (restated)|**Unrestricted**
**funds**
**£**
93,417
-
-
**-**
-
-
-
-
200
17,947
**111,564**
35,701
7,833
**43,534**
**155,098**
172,853|**Restricted**
**funds**
**£**
-
13,905
8,179
5,900
5,794
22,317
-
4,661
-
2,941
**63,697**
-
-
**-**
**63,697**
80,709|**Total**
**2020**
**£**
**93,417**
**13,905**
**8,179**
**5,900**
**5,794**
**22,317**
**-**
**4,661**
**200**
**20,888**
**175,261**
**35,701**
**7,833**
**43,534**
**218,795**|**Total**
**2019**
**£**
109,407
14,891
12,673
10,500
9,415
22,513
1,000
7,410
-
27,963|
|---|---|---|---|---|
|||||215,772|
|||||30,188
7,602|
|||||37,790|
|||||253,562|
|||||**253,562**|
-14-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **3 Income from other trading activities**
|**Unrestricted**
**funds**
**£**
**_Grace Church_**
Rental income
2,571
**_Hope Church_**
Rental income
1,025
**3,596**
Total for 2020
18,011
**4**
**Expenditure on charitable activities**
**Grace**
**Basis of**
**Church**
**allocation**
**£**
Staff costs (note 7)
Time spent
69,833
Office costs
Usage
5,594
Property costs
Usage
9,374
Activity costs
Usage
39,868
Mission family support
N/a
4,080
Professional fees
Income
6,203
Gifts
Costs
20,472
Other costs
Costs
2,713
Depreciation
Ownership
213,354
Governance costs (note 5)
Time spent
900
**372,391**
Total for 2020
389,270
Restricted funds
41,621
Unrestricted funds
330,770
**372,391**||**Restricted**
**funds**
**£**
-
-
**-**
-
**Hope**
**Church**
**£**
34,993
2,594
2,889
351
-
437
4,484
214
-
300
**46,262**
55,337
-
46,262
**46,262**||**Total for**
**year**
**ended**
**31 March**
**2021**
**£**
**2,571**
**1,025**
**3,596**
**Total for**
**year**
**ended**
**31 March**
**2021**
**£**
**104,826**
**8,188**
**12,263**
**40,219**
**4,080**
**6,640**
**24,956**
**2,927**
**213,354**
**1,200**
**418,653**
**41,621**
**377,032**
**418,653**|**Total for**
**period**
**ended**
**31 March**
**2020**
**£**
9,006
9,005
18,011
18,011
**Total for**
**period**
**ended**
**31 March**
**2020**
**£**
104,268
4,092
17,096
51,545
13,905
6,074
25,479
7,644
213,304
1,200
444,607
444,607
**61,919**
**382,688**
**444,607**|
|---|---|---|---|---|---|
|||||||
||||
|||
||
|||||
-15-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **4 Income from other trading activities**
## **Prior year**
|**rior year**|||||
|---|---|---|---|---|
|**Grace**
**Basis of**
**Church**
**allocation**
**£**
Staff costs (note 7)
Time spent
70,859
Office costs
Usage
1,030
Property costs
Usage
9,488
Activity costs
Usage
48,892
Mission family support
N/a
13,905
Professional fees
Income
5,834
Gifts
Costs incurred
19,439
Other costs
Costs incurred
5,619
Depreciation
Ownership
213,304
Governance costs (note 5)
Time spent
900
**389,270**
Total for 2019
(restated)
426,745
Restricted funds
61,919
Unrestricted funds
327,351
**389,270**
**5 Governance costs**
**Unrestricted**
**funds**
**£**
Independent examiner fees
**1,060**
Accountancy support fees
**140**
**1,200**|
|**Hope**
**Church**
**£**
33,409
3,062
7,608
2,653
-
240
6,040
2,025
-
300
**55,337**
57,919
-
55,337
**55,337**
**Restricted**
**funds**
**£**
**-**
**-**
**-**|**Total for**
**year**
**ended**
**31 March**
**2020**
**£**
**104,268**
**4,092**
**17,096**
**51,545**
**13,905**
**6,074**
**25,479**
**7,644**
**213,304**
**1,200**
**444,607**
**61,919**
**382,688**
**444,607**
**Total**
**2021**
**£**
**1,060**
**140**
**1,200**|**Total for**
**period**
**ended**
**31 March**
**2019**
**£**
118,178
7,056
20,056
65,278
14,891
4,530
24,218
9,375
218,076
3,007|
|||||484,664|
|||||484,664|
|||||**76,783**
**407,881**|
|||||**484,664**|
|||||**Total**
**2020**
**£**
1,060
140
1,200|
||||||
-16-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **6 Independent examiners remuneration**
The independent examiners remuneration amounts to an independent examination fee of £883 exclusive of VAT (2020: £883) and accountancy support fees totalling £1,067 exclusive of VAT (2020: £1,067).
## **7 Staff costs and employee benefits**
|Wages and salaries
Social security
Defined contribution pension costs|**2021**
**£**
**95,361**
**3,998**
**5,467**
**104,826**|**2020**
**£**
97,188
1,577
5,503|
|---|---|---|
|||104,268|
No employees received total employee benefits (excluding employer pension costs) of more than £60,000.
## **Particulars of employees:**
The average monthly number of employees and full time equivalent (FTE) during the year was as follows:
||**2021**|**2021**|**2020**|**2020**|
|---|---|---|---|---|
||**Number**|**FTE**|**Number**|**FTE**|
|Charitable activities|**6**|**3**|7|4|
## **8 Trustees’ and key management personnel remuneration and expenses**
The trustees neither received nor waived any remuneration during the year (2020: £Nil).
The total amount of employee benefits received by key management personnel is £60,393 (2020: £60,123). The Trust considers its key management personnel compromise the Lead Elder and three Elders.
Expenses of £nil (2020: £nil) were incurred in respect of the Trustees’ meeting expenses.
## **9 Related party transactions**
There were no related party transactions which arose during the period (2020: £nil).
-17-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **10 Tangible fixed assets**
|**Cost**
At 1 April 2020
Additions
Disposals
**At 31 March 2021**
**Depreciation**
At 1 April 2020
Charge for year
Eliminated on disposals
**At 31 March 2021**
**Net Book Value**
**At 31 March 2021**
At 31 March 2020|**Freehold**
**property**
**£**
2,108,285
1,429
-
**2,109,714**
1,051,702
210,864
-
**1,262,566**
**847,148**
1,056,583|**Fixtures &**
**equipment**
**£**
46,355
4,817
-
**51,172**
42,684
2,490
-
**45,174**
**5,998**
3,671|**Total**
**£**
**2,154,640**
**6,246**
**-**|
|---|---|---|---|
||||**2,160,886**|
||||**1,094,386**
**213,354**
**-**|
||||**1,307,740**|
||||**853,146**|
||||1,060,254|
Certain freehold land and buildings included above were recognised using a previous professional valuation (undertaken by Byrom Clark Roberts) as a deemed cost on transition to SORP (FRS 102). These assets are being depreciated from their valuation date of 2 April 2015 and have a net book value of £847,148 (2020: £1,056,583). The historic cost equivalent of these assets is £325,388 (2020: £325,388).
## **11 Debtors**
|**11 Debtors**|||
|---|---|---|
|HMRC Gift Aid tax recoverable
**12 Creditors: amounts falling due within one year**
Sundry creditors and accrued expenses
PAYE and NIC|**2021**
**£**
**9,017**
**9,017**
**2021**
**£**
**1,714**
**1,852**
**3,566**|**2020**
**£**
1,590|
|||1,590|
|||**2020**
**£**
2,643
1,901|
|||4,544|
-18-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **13 Funds**
|**Unrestricted funds**
Grace Church
Hope Church
Fixed asset reserve
**Total unrestricted funds**
**Restricted funds**
Mission family
Stewardship fund
Zambia fund
Scholarship fund
**Total restricted funds**
**Total funds**|**At 1 April**
**2020**
**£**
2,851
15,648
1,060,256
1,078,755
-
661
5,184
4,792
10,637
1,089,392|**Incoming**
**resources**
**£**
155,313
50,427
-
**205,740**
4,130
-
41,793
4,150
**50,073**
**255,813**|**Outgoing**
**resources**
**£**
(117,416)
(46,262)
(213,354)
**(377,032)**
(4,080)
(661)
(32,937)
(3,943)
**(41,621)**
**(418,653)**|**Transfers**
**£**
(4,218)
(1,908)
6,244
**118**
(50)
-
2,757
(2,825)
**(118)**
**-**|**At 31**
**March**
**2021**
**£**
**36,530**
**17,905**
**853,146**|
|---|---|---|---|---|---|
||||||**907,581**
-
**-**
**16,797**
**2,174**|
||||||**18,971**|
||||||**926,552**|
## **Unrestricted funds**
Whilst income and expenditure is presented separately above, there is no legal requirement for the funds of either church to be spent specifically on Grace Church or Hope Church.
## **Restricted funds**
## **Mission family**
Some members of Grace Church donate money each month to support a family who used to attend the church but are now on mission. These funds are sent to the family in need each month. These donations ended during this financial year.
## **Stewardship**
The Stewardship fund was set up by a member of Grace Church to help pay towards costs of building works and upgrades to equipment that belong to the church. During the financial year funds no funds have been donated and the small amount left from the previous year has been used for architect fees.
## **Zambia**
This fund was established with the purpose of supporting the wider work of Dayspring Ministries International, Kitwe, Zambia, the church administering the Streetlife project, and comprises:
## **Streetlife project**
The Streetlife fund was established in order to sponsor the education of orphaned children in Zambia.
## **Apartments project**
The Apartments project was set up to help fund some new build apartments in Zambia that will host students throughout the academic year.
-19-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Feeding programme**
A feeding programme is operated in Kitwe for the most vulnerable children in the area. The children who visit receive a simple meal of rice, porridge or eggs.
## **Go Zambia Project**
The Go Zambia project is a project to send a group of young people to Zambia to assist with the other ongoing projects.
## **Scholarship fund**
This fund was set up for young people who have progressed through the Streetlife project in Zambia. As they complete their schooling the project leaders may recommend a small grant from the fund to help the young person to find or start work, or to set up a small business.
## **13 Movement in funds – previous year**
|**Unrestricted funds**
**Grace Church**
**Hope Church**
**Fixed asset reserve**
**Total unrestricted funds**
**Restricted funds**
**Mission family**
**Stewardship fund**
**Zambia New Frontiers**
**Scholarship fund**
**Total restricted funds**
**Total funds**|**At 1 April**
**2019**
**£**
2,577
15,851
1,271,398
**1,289,826**
-
-
5,021
2,346
**7,367**
**1,297,193**|**Incoming**
**resources**
**£**
120,570
52,539
-
**173,109**
13,905
5,900
38,098
5,794
**63,697**
**236,806**|**Outgoing**
**resources**
**£**
(114,047)
(55,337)
(213,304)
**(382,688)**
(13,905)
(5,239)
(38,049)
(4,726)
**(61,919)**
**(444,607)**|**Transfers**
**£**
(6,249)
2,595
2,162
**(1,492)**
-
-
114
1,378
**1,492**
**-**|**At 31**
**March**
**2020**
**£**
2,851
15,648
1,060,256|
|---|---|---|---|---|---|
||||||**1,078,755**
-
661
5,184
4,792|
||||||**10,637**|
||||||**1,089,392**|
-20-
## **GRACE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **14 Analysis of net assets between funds – previous year**
|||||||**Restricted**||||
|---|---|---|---|---|---|---|---|---|---|
||||||||||**At 31**
**March**|
|||||**Unrestricted**||**general**||||
|||||**funds**||**funds**|||**2020**|
|||||**£**||**£**|||**£**|
|||||||||||
|||||||||||
|**Fund balances at 31 March 2020 are**|**represented by:**|||||||||
|Tangible fixed assets||||1,060,254||-|||**1,060,254**|
|Current assets||||23,045||10,637|||**33,682**|
|Creditors falling due within one year||||(4,544)||**-**|||**(4,544)**|
|||||||||||
|||||||||||
|**Total funds**||||**1,078,755**||**10,637**|||**1,089,392**|
|||||||||||
-21-
**GRACE CHURCH The Grace Centre Somerset Road Bolton BL1 4NE Charity Number: 1049144**
MHA Moore and Smalley Richard House 9 Winckley Square Preston PR1 3HP
Dear Sirs
The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your independent examination of the charity’s financial statements for the year ended 31 March 2021. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief.
## **General**
- 1 We acknowledge that the work performed by you is substantially less in scope than an audit performed in accordance with International Standards on Auditing (UK) and that you do not express an audit opinion.
- 2 We confirm that the charity was entitled to exemption under section 144 of the Charities Act 2011 the requirement to have its financial statements for the financial year ended 31 March 2021 audited.
- 3 We have fulfilled our responsibilities as trustees as set out in the terms of your engagement letter dated 10 November 2021, under the Charities Act 2011 for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you.
- 4 All the transactions undertaken by the charity have been properly reflected and recorded in the accounting records.
- 5 All the accounting records have been made available to you for the purpose of your independent examination. We have provided you with unrestricted access to all appropriate persons within the charity, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission.
- 6 The financial statements are free of material misstatements, including omissions.
- 7 The effects of uncorrected misstatements (as set out in the appendix to this letter) are immaterial both individually and in total.
## **Assets and liabilities**
- 8 The charity has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets, except for those that are disclosed in the notes to the financial statements.
- 9 All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate.
- 10 We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.
## **Accounting estimates**
- 11 The methods, data and significant assumptions used by us in making accounting estimates, and their related disclosures, are appropriate to achieve recognition, measurement and disclosure that is reasonable in the context of the applicable financial reporting framework.
## **GRACE CHURCH The Grace Centre Somerset Road Bolton BL1 4NE Charity Number: 1049144**
## **Legal claims**
- 12 We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for and disclosed in the financial statements.
## **Laws and regulations**
- 13 We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.
## **Related parties**
- 14 Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with legislative and accounting standards requirements.
## **Subsequent events**
- 15 All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed.
## **Going concern**
- 16 We believe that the charity's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity's needs. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the charity's ability to continue as a going concern need to be made in the financial statements.
## **Grants and donations**
- 17 All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income.
## **Restricted grants and donations are as follows and as listed in the accounts:**
Streetlife Fund £23,087
Mission family £4,130
Zambia £7,402
Go Zambia £7,080
Scholarship £4,150
Gift Aid £4,224
Yours faithfully
....................................................................... Trustee – Mrs S Bradbrook
..................................................................... Trustee – Mr J J McGregor
Signed on behalf of the board of trustees
> Date14/12/2021