ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2020
NEWSPRING CHURCH
CHARITY REGISTRATION No: 1052699
Independent Examiners Ltd
2 Broadbridge Business Centre
Delling Lane Bosham West Sussex PO18 8NF
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NEWSPRING CHURCH
CONTENTS
| Page 3 | Legal & Administrative Information |
|---|---|
| Page 4 | Independent Examiner's Report on the Accounts |
| Page 5 to 9 | Trustees' Report |
| Page 10 | Statement of Financial Activities |
| Page 11 | Balance Sheet |
| Pages 12 to 18 | Notes to the Financial Statements |
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NEWSPRING CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
OTHER NAMES
Wakefield Covenant Community (Old Name) The King's Church, Wakefield (Old Name)
DATE OF REGISTRATION 6th January 1996 CHARITY NUMBER 1052699 START OF FINANCIAL YEAR 1st September 2019 END OF FINANCIAL YEAR 31st August 2020 TRUSTEES AT 31ST AUGUST 2020 Adam Sessions Julia Ford John Mellor Robert Haley (appointed 25 November 2019) John Ledgeway (resigned 25 November 2019)
The existing trustees appoint any new trustees following the provisions set out in the governing document.
GOVERNING DOCUMENT
The charity is controlled by its governing document, a deed of trust, dated 6th January 1996 as amended by supplemental deeds dated 1st June 1998, 3rd November 2013 and 23rd March 2014.
OBJECTS
1. The advancement of the Christian Faith. 2. The relief of persons who are in conditions of need, hardship or distress or who are aged or sick. 3. The advancement of education on the basis of Christian principles.
REGISTERED ADDRESS The NewSpring Centre Illingworth Street Ossett West Yorkshire WF5 8AL BANKERS HSBC Bank plc 66 Westgate Wakefield West Yorkshire WF1 1XB INDEPENDENT EXAMINER Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
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INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS
Report to the trustees/ members of Newspring Church on the accounts for the year ended 31st August 2020 set out on pages 10 to 18.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act,
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to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
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to state whether particular matters have come to my attention
Basis of independent examiner’s statement
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention
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which gives me reasonable cause to believe that in, any material respect, the requirements: · to keep accounting records in accordance with section 130 of the Charities Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Independent Examiners Ltd
2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
Dated: 29th June, 2021
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NEWSPRING CHURCH
TRUSTEES REPORT FOR THE YEAR ENDED 31ST AUGUST 2020
AIMS AND OBJECTIVES
The trust considers that it meets the Charity Commission Public Benefit Criteria. The Trust Deed dated 6[th] January 1996 set the charitable objectives as:
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Advancement of the Christian Faith.
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Worship and proclamation of the gospel, teaching of Christian doctrine and principles, distribution of literature and media.
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Relief of the poor, aged, or sick.
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The advancement of Christian education.
The charity primarily operates in the Wakefield area of West Yorkshire, but will sometimes work with, or otherwise support other churches in the UK and overseas with similar aims and objectives as the church leadership directs.
PUBLIC BENEFIT CRITERIA
The trustees regularly review the objectives and activities of the charity, including giving due regard to the Charity Commission’s general guidance on public benefit and on the advancement of religion for the public benefit.
Examples of how the Trust has met the Public Benefit Criteria:
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Regular open public meetings, outreach and events with publicity and invitations circulated in the local area. Hospitality and refreshments are offered to all free of charge. During the period of covid-19 restrictions, meetings switched to an online publicly accessible platform.
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Ongoing provision of financial and practical assistance from the Trust and church members to local people in need, including regular support and donations to the local foodbank in Ossett
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Provision of financial aid overseas to the poor and those in adversity.
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Ongoing investment and refurbishment in the New Spring Centre to make it suitable and capable of hosting an increasing range of events and activities to benefit local people.
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Providing facilities / accommodation from time to time, to local community groups and users for non-church related activities.
In the last few months of the reporting year, the church complied with any and all national and local public health restrictions in relation to public gatherings and use of the NewSpring Centre. Continuing as many activities and functions virtually/digitally as possible.
ORGANISATIONAL STRUCTURE
NewSpring Church is run on a day to day basis by an Eldership supported by Deacons, a Church Administrator and a team of volunteers. The Trustees meet regularly to discuss the business of the Church and to deal with the administration of the Charity. Agendas are prepared for meetings in advance, and minutes are taken recording matters of importance, note and/or points for action. Each year budgets are discussed and the trustees track expenditure through the year. Decisions are always made by the required quorum of trustees, except for certain minor urgent matters where two trustees may need to take decisions because it is not always possible or practical to convene the full group of trustees. In those instances, the remaining trustees are notified of decisions as soon as it is practical to do so.
In this financial year, the individuals receiving financial benefit from the charity are the Lead Elder, who is employed on a part time, self-employed basis, a part time church administrator and a part time caretaker. All of these roles are essential to the effective running of the church. None of these individuals are connected to the trustees, but it is worth noting that the lead elder, Mr Ledgeway, had served as a Trustee for the last couple of years, but in September 2019 he also took over the lead elder role. In December 2019 he resigned as a Trustee, mainly in order to avoid conflicts and to help him manage workload generally prior to any discussions being held or decisions taken about financial support for him. Immediately following his resignation, a new trustee was appointed.
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NEWSPRING CHURCH
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
ACHIEVEMENT AND PERFORMANCE
Charitable Activities
The trustees are mindful that the activities carried out by the charity in pursuit of its charitable objectives should benefit the local community within which NewSpring Church is based, as well as regular members of the congregation.
The 2019/2020 church reporting and financial year has been a year of significant change. In September, the lead elder in the church and his wife were released from day to day leadership of the congregation in Ossett and embarked upon a mission to establish a new church community in nearby Wakefield city. A third elder was simultaneously appointed, and the three elders assigned responsibilities between themselves. At the church AGM in early October, a roundup of the previous year was given and plans for the coming year set out. A year earlier, ‘The Big Project’ had been launched with ambitious redevelopment/re-configuration plans had been discussed and rolled out. In the intervening period the scale of what had been envisaged had become clear, and funding applications had been unsuccessful, which led to a pause and the review of the plans. However, with the triggering of planning and building regulations applications had come a direction from the Fire Service, limiting the occupancy of the first floor of the NewSpring Centre for public meetings to 60 due to the existence of only one fire escape route. Meetings and events needed to be re-organised with greater use of ground floor meeting rooms and urgent review of the steps necessary to overcome this restriction. Despite the need for urgent alterations to the access and egress arrangements, the elders of the church and the trustees have been keen to focus more resource in general at community outreach activity and less of its donation revenue on building work. The ground floor rooms we able to be used for activities on a weekly basis by various groups, for social events, celebrations, relationship groups, a support group, mother and toddler groups and Sunday school groups. There was an upgrade to the heating controls during the autumn to give greater control, efficiency and to ensure the building environment remained comfortable and useable year-round. Through the first half of the year, the weekly Sunday morning services continued to attract new visitors to the church. This has also led to a need to juggle attendance among some of the church’s established congregation because of the limitations imposed at the start of the year, explained above.
At the Members AGM in September, there was discussion about the progress with major building development proposals, known as ‘The Big Project’ and first discussed almost a year prior. An architect had been engaged to develop designs and ideas to create facilities that can host and cater for individual and groups from the local community whom the church wishes to serve, for example the current users of the building, such as the Brick House Youth Club and the community choir, but also for purposes such as seniors lunches and providing breakfasts for local school children during school holidays. All of those aspirations were still there, but now the focus had switched to quantifying the work necessary to enable meeting numbers to increase beyond the new limit, whilst still incorporating some works to the kitchen and dining facilities. With no proper kitchen in particular and basic serving facilities in general, we have not been able to explore such initiatives beyond mere aspiration to this point. During the course of the year, the option to add an extra floor to the building was postponed indefinitely and new revised plans were drawn up for the new scaled back proposals.
Working with local councillors and sharing our vision with them, the Church was able to secure some capital funding in the spring of 2020 by means of a grant for the access and egress works. Ironically, the funds were secured at around the same time the pandemic forced the closure of the building to public use. Nevertheless the money remains on deposit, together with existing earmarked church donor funds that are still be added to through regular giving.
The impact of the Covid-19 Pandemic Restrictions
It has been a year of two halves, with the first six months seeing a programme of meetings and events that were well attended and enjoyed. Following the implementation of government restrictions in March, the church ceased physical meetings and events at the NewSpring Centre, with a switch to virtual formats wherever possible / practical to do so.
Pastoral, prayer and teaching groups moved online relatively easily via Zoom and other applications and maintaining connections against a background of shielding and social distancing has been particularly important, albeit not always easy. Between March and August, the online meetings were the only real means of group contact and interaction, but engagement levels remained moderately strong, as did the level of giving and donations, against a background of reduced operating costs.
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NEWSPRING CHURCH
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
The other main impact of the pandemic restrictions was on the church’s ability to roll out its mission to plant a new church congregation in Wakefield city. The church ‘Plant’, or ‘Resurrection Church’ as it was to be known, could not start meeting and outreaching for obvious reasons, and so the decision was taken to postpone the activity until government restrictions are lifted sufficiently to allow the initiative to be taken forward with the best possible chance of success.
Prior to the introduction of restrictions, the charity continues to support and provide resource for Men’s and Ladies groups that met regularly throughout the year. As in the previous year, there was a men’s retreat held in October at the Jonas Centre in Redmire.
NewSpring Church is affiliated with a church network known as Catalyst, which comprises around 80 other churches in the UK and many more overseas. This connection led to training and encouragement being offered to the membership in discipleship and evangelism among other subjects. In November a Mission and Discipleship weekend was held, led by Russell Godward of the MOVE Network. Also, several visiting speakers joined us on Sunday mornings during the first half of the year. Of particular note were Dennis and Ashish Varghese from the Bible Church of God in Amritsar. The congregation was greatly encouraged by the reports of the growth and influence of Christianity in India, but also learnt of practical challenges in maintaining the work, including the need to establish a further bible school for teaching and training. The church was able to give some financial support for this, and then later in the year after Covid-19 particularly hit India during the first wave, which prevented the gathering in of crops, the church were able to provide further assistance to help alleviate hunger and food shortages generally. Around the same time, the church was also able to send support for famine relief to Southern Zambia and Malawi, through a sister network of churches known as Christ Central.
Kingdom Heart – which was set up, and run by church members volunteering their time combined with money from the Seed Fund to provide support, aid and gifts to various groups and individuals was able to provide ‘Blessing Hampers’ to local families in need also continued this year at Christmas. Post lockdown the main source of donations and support has been through contributions to the local Ossett foodbank which is well established.
The Gateway support programme continued meeting, attended by several previous and new attendees, running up until closure of the building in the spring. This much valued course continues to provide through the work of the volunteers and the course materials, assistance and strategies for people with life-controlling issues. It is a forum which enables them to discuss their problems and seek ways to break negative patterns of behaviour and regain control of their lives.
The ‘Jelly Babies’ group - a place for mothers and toddler in the locality to come for fellowship and support on a weekly basis operated successfully, with a large attendance up until the closure of the building in March and hopes to be able to restart as soon as restrictions allow.
FINANCIAL REVIEW
Review of Year ending 31st August 2020
As in previous years, the giving of the church has provided the vast majority of the income for the year. In comparison with the previous year, overall donation revenue is slightly down, which is to be expected given the limited scope for the church to function in the latter half of the year. Giving by the church congregation remained strong through, and nearly all giving was by bank transfer in the second half of the year. The releasing of the full time elder in September 2019 and commensurate reduction in salary outgoings also made a noteable difference to the finances generally.
The main points of note:
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Expenditure on the building was fairly static for the reasons explained earlier the report. The ‘Big Project’ has been set up as a standalone project within the accounts and has its own bank account. The only costs so far have been professional fees for the feasibility work and drawings, surveys and statutory applications.
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The amount spent on ministry decreased significantly as the church no longer had a full time elder. Salaries therefore reduced to a much lower level than the past several years. Consideration was given to using the CJRS for the two part time employees, but it was felt their time could still be used reasonably effectively, and the congregation were continuing to donate to (in part at least) pay for the running of the church.
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NEWSPRING CHURCH
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
FINANCIAL REVIEW (continued)
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Expenditure reduced overall with decreased outgoing in utility costs and meeting expenses for obvious reasons with the closure of the building.
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The cash in the bank at the end of the accounting period is considerably higher than the previous year, mainly due to the balances of the two restricted funds as set out below.
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Income from Gift Aid had reduced this year in a continuing trend. This is mainly due to an increasing number of donors either becoming non-taxpayers, or not having paid sufficient tax to cover potential gift aid claims
The charity is content that the finances are sufficiently stable, whilst it continues to pursue its stated aims. Expenditure on reduced-scale building projects will now be financed through existing restricted funds and will be supplemented by grants or special offerings wherever possible, with the charity’s focus continuing to be people and activities/programmes/outreach, and how the facilities can support that focus through the Big Project.
RESTRICTED FUNDS
NewSpring holds two main restricted funds. The Big Project fund has seen some expenditure this year on professional fees and application costs, but also benefitted from a capital grant from the local authority, leaving a balance at year end of approximately £33k. It was reported last year that just before the end of the 2018-19 year, we received funds of just under £37k from our related church network, Catalyst, given specifically for the purposes of church planting activity in Wakefield city over the following two years and to cover the expenses of the same. That has been added to in the current year, and minimal expenditure made due to the impact of the pandemic. The balance held on this account is circa £41k at year end.
ACCOUNTING SYSTEM EMBEDDED
The trust church now uses QuickBooks Online, streamlining and greatly simplifying the ongoing financial record keeping which had previously relied on a basic accounting system with limited functionality and supplementary spreadsheets. The Trustees are very happy with the new system that also handles payroll functions at minimal cost.
FINANCIAL CONTROLS
Management reports are issued monthly to the trustees to review income and expenditure, weekly updates on general levels of donations received and account movements are reviewed and discussed at trustee meetings with Finance, and upcoming commitments a fixed item on all trustee meeting agendas. In terms of practicalities, the trustees review existing financial controls whenever there is a change of trustees or eldership, and decisions are required about who has account access, for what purpose and at what level, with the overall governing principle remaining, whereby a quorum of trustees are needed to approve expenditure. With the changes in ministry outgoings and arrangements and the management of two major projects now evolving, the trustees reviewed and agreed updated financial controls in relation to the Church Plant restricted fund in October 2019. Additionally, there were further decisions taken about financial policy in the light of pandemic restrictions when the trustees held an interim meeting in April 2020. Given the lack of activity and expenditure generally in the latter half of the year, there has been no particular need to introduce any new processes or protocols in relation to general funds.
RELATED PARITES
None of the trustees receive any benefit or income from the charity, either financial or otherwise. There is one connected party who receives a benefit:
Mrs K Ledgeway, wife of Mr J Ledgeway (elder and trustee). She was appointed two years earlier to undertake weekly cleaning and other related facilities management tasks for five hours per week. Mr Ledgeway was not involved in the selection or recruitment process, as documented in the minutes of the respective meeting in March 2018. Further, as noted in earlier in this report, Mr Ledgeway resigned as a trustee in December 2019. Following his resignation, the trustees took the decision to provide him with a regular amount of ministry support, equating to approximately one day per week.
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NEWSPRING CHURCH TRUSTEES REPORT (contlnued) FOR THE YEAR ENDED 31ST AUGUST 2020 VOLUIITEERS A5 noted eatller In the trust, anrwJal ry)rt, 14ewSwkng benefits fwom the tlme and talents of volunteers to put on meetings, events and other actNitbes. These i[l¥lduOs are alrTrJst entirety made up of members of the congregatlon and the purtw of volunteer partklE43tlon Is not re?j to funrtralsing for the charlty. The dut$ the volunteers undertake are re&tety Informol and unSlTUCbJred and Include ste4¥ardlng meetlngs, greetyng attendees, putting out chairs, and serving refre5hrnents, rtc. J5 and when phystsl meetings have been pemissible. All volunteers are DBS checkeAI and work In p3s where deem&1 necessary and appn)prlate. RESERVES POLICY The trusrees consldw It prudent to set an am(¥Jnt of nK)ry that wtyjkl albjw tt to contlnue to operate tor three months if income wedueed or ceased with Ilit prior Thot. Whltst the trust (knes carry a balarte at year end, It 65 not 5ufficnt to cover a three month lOd. tmjt the yeav geneTaI has been vnusual and Quite unpdICtable. Any reserves pollcy Ls to be kept under review and as always. has had to te baknted agalnst the general default posltKJn of the trustees, whlch Is not to acwmukte or carry excve baiartrces, as the money recee has been given fDr tharfjtable purFO5es, not for hokllrMJ. PRIMCIPAL PJIIDING SOURCES The principal sources of fundlrwj for the charlty are the regular and Indmdual gffts from church members and the conwuentlal Gfc Ak1 whkh the chartty to redaim fvum HMRC. The thurth also rece a capital grant thls year of clrca £22k from the kncal wtlKrty. the flr5t grnnt of remotety thts sQe SIn the church was fit establlshed the 1980's. TRusfEEV RISPOMIBIiITTES The Charltles Act 2011 requ1 the trustees to pwre finala1 statements for finala1 year whlch olve true and fair vlew of the state of affairs of the trust and of tl surrAu5 of thÈ trt hr that pertLNI. In preparlNJ those ftnanclal statements the trustees are requlryl to: l) Sektt gJitable accountlng pole$ and appW them conspstentty 11) Make judgements and estImaS that are reasonabk and prudent Ill) Prepare financlal statements on the golng concem basbs unless It Is Inèpproprlate to pregjme that the tnjst will contlnue In extstence. The trustees are resp)nsible for keeping proper acts)untlng records, disthse wlth reasonable acojracy at any tlrne the financlal ltIOn of the trust. They a rtsponslble for saf&Juardlng the assets of the trust and hence for taking reasonab* steps tor the pre¥entknn and det1xtn of fvaud and other irregularftles. Appro¥èJ by the TNstees on the........-........... - ju 2021.- Slgned on thelr behalf by Trustee.................. Prlntej Name: Adarn Sesshjns
NEWSPRING CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST AUGUST 2020
| Notes INCOME Income from Generated Funds Donations & Legacies 3a Charitable Activities 3b Other Trading Activities 3c Investment Income 3d Other 3e TOTAL INCOME EXPENSES 4a Other 4b TOTAL EXPENSES NET INCOMING/ (OUTGOING) Funds Brought Forward Loss on Disposal of Fixed Assets Transfer Between Funds 5 TOTAL FUNDS CARRIED FORWARD Cost of Charitable Activities |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2019/20 2018/19 £ £ £ £ £ 74,286 3,858 43,454 121,598 162,184 1,420 - - 1,420 4,365 1,629 - - - 2,866 5 - 20 25 16 281 - 23,509 23,790 165 |
|---|---|
| 77,622 3,858 66,983 148,463 169,596 |
|
| 50,402 5,020 40,974 96,396 106,222 16,201 - - 16,201 16,460 |
|
| 66,603 5,020 40,974 112,597 122,682 |
|
| 11,019 (1,162) 26,009 35,866 46,914 105,237 3,409 51,924 160,570 113,656 - - - - - (1,469) 1,469 - - - |
|
| 114,787 3,716 77,933 196,436 160,570 |
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 12 to 18 form part of these financial statements.
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NEWSPRING CHURCH BALANCE SHEEr AS AT 31ST AUGUST 2020 Unfestrthd Dnata1 Restrkxed 31-Au20 31.Aug.19 FuThts FuThts FuThJs Totsl Tanglbk Assets 292,635 292,635 297,086 Total Flxed A•Mts 635 292 635 Debtor5 & Prepayments Cash at Bank aTh1 In HaTh1 8.151 11.598 8,151 94,072 4,714 63,119 3.716 78.758 Total Current A••ets 19,749 3.716 78.758 101223 Creditor•: Amounts faUIThJ due wlthln one year 18.619 825 19,4 21,846 MET CUAREIIT ASSETS 1.130 3.716 77,933 82.779 45,987 TOTAL ASSEfs kss Uabll*les 293.765 3.716 77.933 375.414 343,073 Amounts falllThJ due In more than one year 178.978 178,978 182,503 MET ASSETS 114,787 3.716 77,933 196,436 160,570 JNDS OF ThE CHARrrY General fvnds Deslgnated ftjnds Restrlcted fvnds 114,787 114,787 3,716 77.933 105,237 3,409 51,924 3.716 77.933 TOTAL FVMDS 114,787 3.716 77,933 196,43fj 160,570 Approved by the Trustees on the ........-.......... 2&V• - Jure 2021.........-.......-............................................... Sbjned on their behalf by TrJJstee................ ... Prlnted Name.. Adam Se55bns
NEWSPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2020
1. ACCOUNTING POLICIES
Basis of Preparation & Assessment of Going Concern
Basis of Preparation
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP - FRS102) and the Charities Act 2011.
The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.
Assessment of Going Concern
Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
Incoming Resources
Recognition of Incoming Resources
These are included in the Statement of Financial Activities (SOFA) when:
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the charity becomes entitled to the resources;
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the trustees are virtually certain they will receive the resources; and
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the monetary value can be measured with sufficient reliability
Incoming Resources with Related Expenditure
Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA.
Grants and Donations
Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources. A grant of £23,509 was received from the City of Wakefield Metropolitan District Council.
Tax Reclaims on Donations and Gifts
Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate.
Gifts in Kind
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable.
Donated Services and Facilities
These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources
Volunteer Help
The value of any voluntary help received is not included in the accounts but is described in the trustees' annual
Investment Income
This is included in the accounts when receivable.
Investment Gains and Losses
This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
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NEWSPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
1. ACCOUNTING POLICIES (continued)
Expenditure and Liabilities
Liability Recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
Governance Costs
Include costs of the preparation and examination of statutory accounts, the costs of the trustees meetings and cost of any legal advise to trustees on governance or constitutional matters.
Grants with Performance Conditions
Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.
Grants Payable without Performance Conditions
These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.
Support Costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources, eg allocating property costs by floor areas, or per capital, staff costs by the time spent and other costs by their usage.
Fixed Assets
These are capitalised if they can be used for more than one year, and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt.
Depreciation Expense
Depreciation is calculated at a rate to write off the cost of tangible fixed assets on an appropriate basis over their estimated useful lives. The rates applied per annum are as follows:
Fixtures, Fittings & 10% Reducing Balance Basis General Equipment 20% Reducing Balance Basis Project Costs 33% Straight Line Basis
2. TANGIBLE FIXED ASSETS
| Cost 01-Sep-19 Additions Disposals Cost at 31-Aug-20 Depreciation 01-Sep-19 Charge Disposals Depreciation at 31-Aug-20 Net Book Value 31-Aug-20 Net Book Value 31-Aug-19 |
Land & Project Fixtures & General Total Buildings Costs Fittings Equipment 2019/20 £ £ £ £ £ 270,000 - 43,587 20,364 333,951 - 676 953 1,629 - - - |
|---|---|
| 270,000 - 44,263 21,317 335,580 |
|
| - - 20,275 16,590 36,865 - 4,426 1,654 6,080 - - - |
|
| - - 24,701 18,244 42,945 |
|
| 270,000 - 19,562 3,073 292,635 |
|
| 270,000 - 23,312 3,774 297,086 |
The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st August 2020: See note 10 of the Reports & Financial Statements.
31st August 2019: See note 10 of the Reports & Financial Statements.
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NEWSPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
3. INCOME
| a) Donations & Legacies Tithes & Offerings Gifts & Donations Gift Aid Tax Refund b) Charitable Activities Activities & Events Conference & Seminars c) Other Trading Activities Room Hire d) Investment Income Interest e) Other Grants Other Income |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2019/20 2018/19 £ £ £ £ £ 62,949 3,312 - 66,261 88,253 - 545 40,841 41,386 57,706 11,338 - 2,613 13,951 16,225 |
|---|---|
| 74,286 3,858 43,454 121,598 162,184 |
|
| 1,280 - 1,280 4,365 140 - - 140 - |
|
| 1,420 - - 1,420 4,365 |
|
| 1,629 - - 1,629 2,866 |
|
| 1,629 - - 1,629 2,866 |
|
| 5 - 20 25 16 |
|
| 5 - 20 25 16 |
|
| - - 23,509 23,509 281 - - 281 165 |
|
| 281 - 23,509 23,790 165 |
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NEWSPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
4. EXPENSES
| a) Cost of Charitable activities Activities & Events Big Project Costs 6 Building Repairs & Maintenance Church Meeting Costs Conference & Seminar Costs Depreciation Expenses Equipment Costs Gifts & Donations License & Subscriptions Ministry Expenses Ministry Gifts Ministry Support Office Outreach & Evangelism Seed Fund 5 Staff 11 Sunday School Telephone Training Utilities Wakefield Church Plant 6 b) Governance Costs Insurance Costs Independent Examiner's Fee Bank & Interest Charges |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2019/20 2018/19 £ £ £ £ £ 1,140 - 1,140 6,418 4,637 4,637 4,591 1,103 1,978 3,081 1,729 1,244 - - 1,244 1,437 322 - - 322 180 6,080 - - 6,080 6,755 681 31 - 712 1,781 80 1,317 1,397 1,774 1,445 - - 1,445 1,719 253 - - 253 1,732 - - - 2,637 23,981 5,664 29,645 56,290 326 - - 326 382 265 - - 265 903 - 3,011 - 3,011 1,914 10,769 - - 10,769 10,769 - - - - 1,385 376 - - 376 415 - - - - 238 2,336 - - 2,336 3,173 - - 29,357 29,357 |
|---|---|
| 50,402 5,020 40,974 96,396 106,222 |
|
| 1,488 - - 1,488 1,487 1,188 - - 1,188 1,275 13,526 - 13,526 13,698 |
|
| 16,201 - - 16,201 16,460 |
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NEWSPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
5. DESIGNATED FUNDS
| Building Fund Seed Fund |
Balance Balance 01-Sep-19 Income Expenditure Transfers 31-Aug-20 £ £ £ £ £ - 540 2,009 1,469 0 3,409 3,318 3,011 3,716 |
|---|---|
| 3,409 3,858 5,020 1,469 3,716 |
Building Fund : trustees set aside the first offering of the month plus 25%, in lieu of gift aid, therefore a designated fund to be used to purchase or to fund the refurbishment of NewSpring Centre.
Seed Fund : trustees set aside 5% of Tithe and Offering without any associated gift aid therefore the amount is regarded as a designated fund.
Fixed assets investment purchased from Designated Funds are transferred to the Charity's Unrestricted Fund for general purposes. The Designated funds are wholly represented by the Charity's cash reserves.
6. RESTRICTED FUNDS
| Big Project Fund Wakefield Church Plant Outreach Fund Visiting Speaker Funds Other Earmarked Gifts |
Balance Balance 01-Sep-19 Income Expenditure Transfers 31-Aug-20 £ £ £ £ £ 14,542 24,091 4,637 33,996 36,969 35,896 29,357 43,507 313 - - - 313 - 714 714 - - 100 6,283 6,267 - 117 |
|---|---|
| 51,924 66,983 40,974 - 77,933 |
Wakefield Church Plant - A fund established in August 2018 to hold donations, grants and other income to be used for the purposes of outreach, evangelism and community engagement in Wakefield City, with the purposes of establishing a new community of believers within the city. This fund is intended to run initially for a period of two years, or longer as the trustees decide. Ultimately the Wakefield Church Plant is intended to be self governed and financed once it achieves a viable corporate structure.
Big Project Fund —A fund established to hold donations, grants and other income to be used for the development and Improvement of the Newspring Centre. The Big project was launched as an initiative in September 2018 and is expected to run for at least five years, or until the trustees otherwise agree.
Building Fund: This comprises earmarked giving by individuals who state at the point of donation (or in advance by way of a regular pledge) that they wish a specific donation to be used for the development and improvement of the New Spring Centre in accordance with building projects and programmes that the Elders and Trustees wish to undertake in accordance with the trust's charitable objectives.
Seed Fund: Earmarked giving from individuals wishing their donation to be used for the purposes of the Seed Fund which entirely for meeting needs, alleviating poverty, and associated charitable objectives .
Visiting Speaker Fund: Special offerings taken at services when. guest speakers have shared the word. This offering, along with a top up from the church genera! fund, has been presented as a gift to the speaker.
Outreach Fund - A fund for holding earmarked and designated donations and funds to be used specifically for outreach in the local community of Ossett.
Other Earmarked Gifts: These comprise a range of 'throughput' giving initiatives where (for example) a oneoff short term need arises and church members give donations specifically earmarked to meet one of those needs. The funds are usually paid out immediately or shortly after receipt to the fund or charity or individual as appropriate.
The Restricted Funds are wholly represented by the Charity's cash reserves.
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NEWSPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
7. CASH AT BANK AND IN HAND
| Cash at Bank Cash in Hand |
Unrestricted Designated Restricted Total Total Fund Fund Fund 31-Aug-20 31-Aug-19 £ £ £ £ £ 11,230 3,716 78,758 93,704 62,596 368 - - 368 523 |
|---|---|
| ~~11,598~~ ~~3,716~~ ~~78,758~~ ~~94,072~~ ~~63,119~~ |
8. DEBTORS AND PREPAYMENTS
| Trade Debtors Gift Aid Tax Recoverable Sundry Debtors Prepayments |
Unrestricted Designated Restricted Total Total Fund Fund Fund 31-Aug-20 31-Aug-19 £ £ £ £ £ 8,151 8,151 25 - - - - 4,251 - - - - - 438 |
|---|---|
| 8,151 - - 8,151 4,714 |
9. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade Creditors Deferred Grants Independent Examiner's Fee Kingdom Bank Mortgage Sundry Creditors Donations to be sent to Beneficiary |
Unrestricted Designated Restricted Total Total Fund Fund Fund 31-Aug-20 31-Aug-19 £ £ £ £ £ - - - - 405 - - 825 825 1,767 1,188 - - 1,188 2,325 16,991 - - 16,991 16,991 440 - - 440 - - - - - 358 |
|---|---|
| 18,619 - 825 19,444 21,846 |
10. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
| Kingdom Bank Mortgage | Unrestricted Designated Restricted Total Total Fund Fund Fund 31-Aug-20 31-Aug-19 £ £ £ £ £ 178,978 - - 178,978 182,503 |
|---|---|
| 178,978 - - 178,978 182,503 |
During the year ended 31st August 2013, Newspring Church acquired Land & Building at The NewSpring Centre, Illingworth Street, Ossett, West Yorkshire at a cost of £270,000. The Charity made a capital contribution of £43,000 and remaining funds were provided by a mortgage from the Kingdom Bank Limited.
The Kingdom Bank Limited provided the mortgage of £227,000 over a 30 year fixed term period at an annual interest rate of 6.75%, with monthly repayments of £1,415.92. The mortgage commenced during 2013 with maturity in 2043.
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NEWSPRING CHURCH
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
11. STAFF COSTS AND NUMBERS
| 2019/20 £ Gross Wages and Salaries 10,769 Employer's National Insurance Costs - Pension Contributions - 10,769 Employees who were engaged in each of the following activities: 2019/20 Activities in furtherance of organisation's objects 2 |
2018/19 £ 10,769 - - |
|---|---|
| 10,769 | |
| 2018/19 2 |
The organisation operates a PAYE scheme to pay all employed members of staff and no employees received emoluments in excess of £60,000 (2018/19:None).
There were also 2 people supported on a self-employed basis which are included in the expenditure note as "Ministry Support Costs" and "Wakefield Church Plant". No one person was paid over £60,000 in total over the year.
12. PAYMENTS TO TRUSTEES AND RELATED PARTY TRANSACTIONS
| Wife of J Ledgeway (Trustee until December, 2019) | Wife of J Ledgeway (Trustee until December, 2019) | 2019/20 | 2018/19 | ||
|---|---|---|---|---|---|
| Remuneration Pension | Benefit | Other | TOTAL (£) | TOTAL (£) | |
| Mrs K Ledgeway | 2,600 | 0 | 0 | 2,600 | 2,600 |
The only other payments made to the Trustees and related parties consisted of reimbursements for items purchased on behalf of the Church in furthering the Charity's objects. No Trustees received any remuneration or benefits in kind during the financial year.
No other payments were made to Trustees or any persons connected with them during this financial year. No other material transactions took place between the organisation and a Trustee or any person connected with them.
13. RISK ASSESSMENT
The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.
14. PUBLIC BENEFIT
The Charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the Charity has achieved this are provided in the Report of the Trustees. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
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