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← Grace Church, Bolton

2022-03-31-accounts

Charity Number: 1049144

Grace Church

Trustees’ Report and Financial Statements

For The Year Ended 31 March 2022

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
Mrs E Spielmann
Mr M Taylor
Independent examiner Wyatt & Co Chartered Accountants
Nigel Wyatt BSC FCA
Wyatt & Co Chartered Accountants
125 Main Street
Garforth
Leeds
LS25 1AF

-1-

GRACE CHURCH

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The trustees have pleasure in presenting their report and the unaudited financial statements of the charity for the year ended 31 March 2022. 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.

The trustees of the church are appointed by the Elders. The number of Trustees always meets the minimum requirement and additional trustees are added as required and if particular skills sets are needed.

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:

-2-

GRACE CHURCH

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2022

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

Following the previous years’ covid restrictions, both Grace and Hope Church returned to meeting in person and followed the appropriate guidelines as required. Grace Church continued to air each of their services on YouTube and Grace Church membership is approximately 130-140 people. Hope Church is Westhoughton have an approximate membership of 45 people.

Hope Church, Westhoughton

Hope Church has met online each Sunday morning until the Autumn 2021 and then met in person which has been the case up until the end of the financial year. 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 discussion with the Bolton Council could lead to a small payment to represent a full and final settlement to exit the premises. Hope Church has hired some alternative space, close to the Community Centre, for their Sunday morning in person meetings.

This year Hope Church have given some financial help to those in need. They have 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 mothers and toddlers group at Hope church. Despite not having the use of the Community Centre, Hope Church have run open air fun days, services and community giveaways. Hope Church have continued to be a part of the community offering support to those who are part of the congregation and those who are part of the wider community and taking part in community group forums. Mark, the Hope Church leader, is employed by Grace Church for five days per week (full-time).

Giving

The regular giving from active members of both churches has increased. Grace Church generated donations excluding Gift Aid and kitchen grants of £164,433 (2021: £155,074) and Hope Church generated donations excluding Gift Aid of £49,618 (2021: £34,712).

Building Works

The Grace Centre building continues to be an important asset to the life of the church. The major kitchen refurbishment, which was funded largely by grants, was completed in September 2021 and is now being used for church events and also for our church café. The building has been utilised by a number of community groups during the year when government restrictions have allowed.

-3-

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

GRACE CHURCH

Toddler Group

The toddler group returned in person in April 2021 and is continuing to thrive. Parents and carers bring their children to enjoy the toys, crafts, stories and singing which takes place during the session.

33@GC

The youth group returned to Friday night in person sessions in April 2021. The evenings consist of ball games and other games, snacks and a short reflection on the Bible. This youth group is open to members of the church and anyone in the community who is high school age. We have seen large growth in the group over the last 12 months, with an every of 30-35 young people attending each week.

Senior Citizens Club

The senior citizens club were able to return to in person meetings in the September 2021. Some members have been a little hesitant to return to regular contact post Covid but numbers are starting to grow. The morning consists of refreshments, games and chair based exercises.

ESOL

In January 2022 we started free English lessons for speakers of other languages. The attendees have been referred by the council and through word of mouth in the local community. These classes have been well attended and they have expanded to a beginners and a more advanced class.

Community café

Café @ GC, our community café, launched in March 2022 with the intention to welcome everyone from the community and for those feeling particularly lonely or suffering from mental health problems to feel welcomed and loved and have a volunteer to chat to. We offer a suspended coffee system where people are able to pay for a coffee for someone else, who is unable to pay for one themselves, to claim at a future date. The café is open one morning a week at present.

Christmas outreach

The local community were invited to attend a family friendly craft event, with a light meal included, which was very well attended. The children enjoyed learning the true meaning of Christmas during the event. Grace Church also held it’s annual Carol service which was well attended.

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. The Church is also now working with Urban Outreach on a foodbank initiative from November 2022.

Zambia

We have had around 60 children sponsored through ‘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.

-4-

GRACE CHURCH

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2022

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.

A team from Grace Church were able to go to Zambia for the first time since Covid in April 2022 to check on the Streetlife progress and to provide some business and school teaching as well.

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.

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.

Safeguarding

Grace Church completed two safeguarding training refreshers for our youth and children’s work leaders this year (one online and one in person), and the trustees also agreed our international safeguarding policy, to cover our work in Zambia. Events for children and young people were mainly run online due to the coronavirus pandemic until September 2021, but then began in person after this. 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 did not deal with any specific safeguarding issues during this period, but did provide support to group leaders when any queries arose around best practice and how to support vulnerable church members.

Financial Review

The financial statements are set out on pages 8 to 22.

Total incoming resources on general unrestricted funds were £235,541 (2021: £205,740). Restricted donations and grants of £141,760 (2021: £50,073) were also received and are detailed in the financial statements.

Total resources expended, excluding the depreciation on the building, were £247,649 (2021: £241,074) 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 surplus of £1,013,858 (2021: £162,840 deficit). Excluding the revaluation gain, of £884,206, this year there was a surplus of £129,652. Excluding the depreciation charge in 2021, of £213,354, there is a net surplus of £50,514 in 2021.

-5-

GRACE CHURCH

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Reserves Policy

At 31 March 2022 the charity held unrestricted free reserves (excluding fixed assets) of £83,506 (2021: £54,436) and restricted reserves of £10,349 (2021: £18,971).

The Trustees consider the charity’s free reserves level should be at least three months staff costs which equates to approximately £26,681 (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.

Approved by the trustees on and signed on their behalf by:

_xhite ............................................................................. Trustee – Mr J J McGregor

19/12/2022

SER ............................................................................. Trustee - Mrs S Bradbrook

19/12/2022

-6-

GRACE CHURCH

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2022

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2022 which are set out on pages 8 to 22.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 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

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of The Institute of Chartered Accountants in England and Wales.

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 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

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.

Rage mal

............................................................................. Nigel Wyatt BSC FCA Wyatt & Co Chartered Accountants 125 Main Street Garforth Leeds 20/12/2022 LS25 1AF Date: ………………………

-7-

GRACE CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
2
Other trading activities
3
Total
Expenditure on:
Charitable activities
4
Total
Net income/(expenditure)
Transfers between funds
Gain/ (loss) on revaluation of fixed
asset
Net movement in funds
Funds brought forward at 1 April
2021
Funds carried forward at 31
March 2022		 Unrestricted
funds
£
224,246
11,295
235,541
201,232
201,232
34,309
103,965
884,206
1,022,480
907,581
1,930,061		 Restricted
funds
£
141,760
-
141,760
46,417
46,417
95,343
(103,965)
-
(8,622)
18,971
10,349		 Total for
year ended
31 March
2022
£
366,006
11,295
377,301
247,649
247,649
129,652
-
884,206
1,013,858
926,552
1,940,410		 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

-8-

GRACE CHURCH

BALANCE SHEET

AS AT 31 MARCH 2022

Total Total
Unrestricted Restricted funds funds
funds funds 2022 2021
Note £ £ £ £
Fixed assets
Tangible assets 10 1,846,670 1,846,670 - - 1,846,670 1,846,670
853,146
1,846,670 1,846,670 - - 1,846,670 1,846,670
853,146
Current assets
Debtors 11 13,047 13,047 1,325 1,325 14,372 14,372
9,017
Cash at bank and in hand 75,595 595 9,024 024 84,619 619
67,955
88,642 88,642 10,349 10,349 98,991 98,991
76,972
Creditors:Amounts falling due (5,251) - - (5,251) (3,566)
within one year 12
Net current assets 83,391 83,391 10,349 10,349 93,740 93,740
73,406
Total net assets 1,930,061 1,930,061 10,349 10,349 1,940,410 1,940,410
926,552
Funds
Unrestricted funds
General fund 13 83,506 83,506 - - 83,506 83,506
54,435
Designated fund 13 21,555 21,555 - 21,555 21,555
-
Revaluation reserve 13 1,825,000 1,825,000 - 1,825,000 000
853,146
Total unrestricted funds 1,930,061 1,930,061 - - 1,930,061 1,930,061
907,581
Restricted funds 13 - 10,349 10,349 10,349 349
18,971
Total funds 1,930,061 1,930,061 10,349 10,349 1,940,410 1,940,410
926,552

19/12/2022

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-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

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 13.

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 2022

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

Land and buildings are stated on a revaluation basis less any impairment losses. The value of the building is independently verified every few years by a suitably qualified individual with the gain or loss on revaluation recognized in the Statement of Financial Activities.

Fixtures & equipment are stated at cost less accumulated depreciation. 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

-11-

NOTES TO THE FINANCIAL STATEMENTS

GRACE CHURCH

FOR THE YEAR ENDED 31 MARCH 2022

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 2022

2
Income from donations and legacies
Unrestricted
funds
£
Grace Church
General donations
130,345
Donations- Mission family support
-
Donations - Zambia
-
Donations - Stewardship
-
Donations - Scholarship fund
-
Donations - Streetlife fund
-
Donations - Zambia apartments
-
Donations - Go Zambia
-
Donations - New Frontiers
1,865
Grants - Kitchen refurbishment
-
Gift aid
26,576
Furlough grants
-
158,786
Hope Church
General donations
49,618
Donations - New Frontiers
2,661
Gift aid
8,441
Furlough grants
4,740
65,460
224,246
Total for 2021
202,144		 Restricted
funds
£
-
-
5,271
-
2,606
23,470
-
876
-
105,102
4,435
-
141,760
-
-
-
-
-
141,760
50,073		 Total
2022
£
130,345
-
5,271
-
2,606
23,470
-
876
1,865
105,102
31,011
-
300,546
49,618
2,661
8,441
4,740
65,460
366,006		 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
252,217

The kitchen refurbishment grants were received from a number of different funders including Viridor, Congregational and General, the National Lottery, Weston Garfield, Hodge Foundation, Bernard Sunley and All Churches Trust.

The furlough grants income represents money from the government due to one member of staff being on furlough during part of the year.

Included within Grace Church general donations is a gift in kind which was received in January 2022. A member of the church gifted the church a video camera (worth £1,860) in exchange of a fader port which the church no longer required (depreciated value of £673).

-13-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Prior year note 2

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
Donations - Kitchen refurbishment
Gift aid
Furlough grants
Hope Church
General donations
Gift aid
Furlough grants
Total for 2020		 Unrestricted
funds
£
109,225
-
-
-
-
-
-
-
-
15,500
21,175
6,842
145,900
34,712
6,663
8,027
49,402
195,302
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

-14-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Grace Church
Rental income
Café income
TSL income
Hope Church
Rental income
Total for 2021
 Unrestricted
funds
£
10,739
301
255
-
11,295
3,596		 Restricted
funds
£
-
-
-
-
-
-		 Total for
year
ended
31 March
2022
£
10,739
301
255
-
11,295		 Total for
period
ended
31 March
2021
£
2,571
-
-
1,025
3,596
3,596

-15-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

4 Expenditure on charitable activities


Expenditure on charitable activities
Basis of
allocation
Staff costs (note 7)
Time spent
Office costs
Usage
Property costs
Usage
Activity costs
Usage
Mission family support
N/a
Professional fees
Level of income
Gifts
Costs incurred
Other costs
Costs incurred
Depreciation
Ownership
Governance costs (note
5)
Time spent
Total for 2021
Restricted funds
Unrestricted funds		 Grace
Church
£
71,941
3,974
15,256
66,573
-
2,647
23,040
5,316
4,911
836
194,494
372,391
46,417
148,077
194,494		 Hope
Church
£
34,782
4,216
3,951
739
-
388
7,371
1,429
-
279
53,155
46,262
-
53,155
53,155		 Total for
year
ended
31 March
2022
£
106,723
8,190
19,207
67,312
-
3,035
30,411
6,745
4,911
1,115
247,649
46,417
201,232
247,649		 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
418,653
41,621
377,032
418,653

-16-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Prior year note 4

Prior year note 4
Basis of
allocation
Staff costs (note 7)
Time spent
Office costs
Usage
Property costs
Usage
Activity costs
Usage
Mission family support
N/a
Professional fees
Income
Gifts
Costs
Other costs
Costs
Depreciation
Ownership
Governance costs (note 5)
Time spent
Total for 2020
Restricted funds
Unrestricted funds
5
Governance costs
Independent examiner fees
Accountancy support fees		 Grace
Church
£
69,833
5,594
9,374
39,868
4,080
6,203
20,472
2,713
213,354
900
372,391
389,270
41,621
330,770
372,391
Unrestricted
funds
£
836
279
1,115		 Hope
Church
£
34,993
2,594
2,889
351
-
437
4,484
214
-
300
46,262
55,337
-
46,262
46,262
Restricted
funds
£
-
-
-		 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
2022
£
836
279
1,115		 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
444,607
61,919
382,688
444,607
Total
2021
£
1,060
140
1,200

-17-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

6 Independent examiners remuneration

The independent examiners remuneration amounts to an independent examination fee of £1,050 exclusive of VAT (2020: £883) and accountancy support fees totalling £45 exclusive of VAT (2020: £1,067).

7 Staff costs and employee benefits


Staff costs and employee benefits
Wages and salaries
Social security
Defined contribution pension costs		 2022
£
96,677
3,799
6,247
106,723		 2021
£
95,361
3,998
5,467
104,826

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:

2022 2022 2021 2021
Number FTE Number FTE
Charitable activities 6 3 6 3

8 Trustees’ and key management personnel remuneration and expenses

The trustees have not received any payment in respect of their duties as trustees during this financial year (2021: £Nil). However, three of the trustees are employed by the charity for other roles, Stephanie Bradbrook (total gross benefits £9,490), Beth Cameron (total gross benefits £4,620) and Mark Taylor (total gross benefits £36,098).

The total amount of employee benefits received by key management personnel is £58,649 (2021: £60,393). The Trust considers its key management personnel compromise the Lead Elder and three Elders.

Expenses of £nil (2021: £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 (2021: £nil).

-18-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

10
Tangible fixed assets		 Freehold
property
£
2,109,714
93,646
-
(378,360)		 Fixtures &
equipment
£
51,172
21,300
(718)
-		 Total
£
2,160,886
114,946
(718)
(378,360)
Cost
At 1 April 2021
Additions
Disposals
Revaluation
At 31 March 2022 1,825,000 71,754 1,896,754
Depreciation 1,262,566
-
-
(1,262,566)		 45,174
4,955
(45)
-		 1,307,740
4,955
(45)
(1,262,566)
At 1 April 2021
Charge for year
Eliminated on
disposals
Revaluation
At 31 March 2022 - 50,085 50,085
Net Book Value 1,825,000 21,670 1,846,670
At 31 March 2022
At 31 March 2021 847,148 5,998 853,146

As detailed earlier in the report, the policy for Freehold Buildings has been updated to that of revaluation basis and not depreciated due to the nature of the building and estimating its useful life is subjective. An independent valuer (Jones Melling) completed a valuation on the building on 1 April 2022. The report deemed that the reinstatement cost of the property was £1,825,000. The historic cost equivalent of these assets is £325,388 (2020: £325,388).

11 Debtors

1
Debtors
HMRC Gift Aid tax recoverable
Loan to church member
Debtors (primarily rent)		 2022
£
12,730
1,000
642
14,372		 2021
£
9,017
9,017

-19-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

12 Creditors: amounts falling due within one year

Sundry creditors and accrued expenses
PAYE and NIC		 2022
£
3,250
2,001
5,251		 2021
£
1,714
1,852
3,566

13 Funds

Unrestricted funds
Grace Church
Hope Church
Revaluation Reserve
Designated funds
Fixed asset reserve
Total unrestricted
funds
Stewardship fund
Zambia fund
Zambia Apartments
Zambia Streetlife
Go Zambia
Zambia New Frontiers
Scholarship fund
Kitchen Renovation
Total restricted funds
Total funds		 At 1 April
2021
£
36,530
17,905
-
54,435
853,146
907,581
-
16,797
-
-
-
2,174
-
18,971
-
-
926,552		 Incoming
resources
£
170,081
65,460
-
235,541
235,541
-
34,052
-
-
-
-
2,606
105,102
141,760
377,301		 Outgoing
resources
£
(143,166)
(53,155)
-
(196,321)
(4,911)
(201,232)
-
(42,185)
-
-
-
-
(4,232)
(46,417)
(247,649)		 Transfers
£
(12,229)
2,080		 Transfers
£
(12,229)
2,080		 Gain/(Loss)
on
revaluation
£
-
-
884,206
884,206
-
884,206
-
-
-
-
-
-
-
-
-
884,206		 At 31
March
2022
£
51,216
32,290
1,825,000
940,794
930,645 1,908,506
21,555
1,930,061
(826,680)
103,965
-
386
-
-
-
-
751
(105,102)
(103,965)
-
-
9,050
-
-
-
-
1,299
-
10,349
1,940,410

-20-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

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.

As explained earlier in the report, a revaluation gain has been recognised in the accounts as the policy for Freehold Buildings has been updated to that of revaluation basis and not depreciated due to the nature of the building and estimating its useful life is subjective. An independent valuer (Jones Melling) completed a valuation on the building on 1 April 2022. The report deemed that the reinstatement cost of the property was £1,825,000. The historic cost equivalent of these assets is £325,388 (2020: £325,388).

Designated funds

This fund represents the fixed asset netbook value which is not part of the land and building revaluation reserve.

Restricted funds

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.

• 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.

-21-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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
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)
0		 At 31
March
2021
£
36,530
17,905
853,146
907,581
-
-
16,797
2,174
18,971
926,552

-22-

GRACE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

– 14 Analysis of net assets between funds previous year

Unrestricted
funds
£		 Unrestricted
funds
£		 Restricted
general
funds
£		 Restricted
general
funds
£
At 31
March
2021
£
Fund balances at 31 March 2021 are represented by:

Tangible fixed assets		 853,146
58,001
(3,566)		 - 853,146
Current assets 18,971 76,972
Creditors falling due within one year - (3,566)
Total funds 907,581 18,971 926,552

-23-