2021-08-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2021

NEWSPRING CHURCH

CHARITY REGISTRATION NUMBER: 1052699

Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham PO18 8NF

NEWSPRING

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2021

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Page
Legal and Administrative Information 3
Trustees' Report 4to6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Accounts 9to17
Independent Examiner's Report on the Accounts 18
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NEWSPRING

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY NUMBER

1052699

WORKING NAMES

START OF FINANCIAL YEAR

Wakefield Covenant Community (Old Name) The King's Church, Wakefield (Old Name)

ist September 2020

END OF FINANCIAL YEAR 31st August 2021

TRUSTEES AT 31 AUGUST 2021

Adam Sessions Julia Ford John Mellor Robert Haley

The existing trustees appoint any new trustees following the provisions laid out in the Charity's governing instrument.

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.

REGISTRATION DATE

6 February 1996:Standard Registration

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.

CORRESPONDENCE ADDRESS The Newspring Centre

Illingworth Street Ossett West Yorkshire WFS 8AL

PRIMARY BANKERS

HSBC Bank pic 66 Westgate Wakefield West Yorkshire WF1 1XB

INDEPENDENT EXAMINER Donna Leppitt

Independent Examiners Ltd Unit 2

The Broadridge Business Centre Delling Lane Bosham PO18 8NF

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NEWSPRING TRUSTEES' REPORT FOR THE YEAR ENDED 31ST AUGUST 2021

AIMS AND OBJECTIVES

The trust considers that it meets the Charity Commission Public Benefit Criteria. The Trust Deed dated 6 January 1996 set the charitable objectives as:

1. Advancement of the Christian Faith 2. Worship and proclamation of the gospel, teaching of Christian doctrine and principles, distribution of literature and media 3. Reliefof the poor, aged, or sick

2. 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. During the subject year the government imposed Coronavirus restrictions limited the scope of the activities that could be undertaken by the charity.

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:

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 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

Provision of financial aid overseas to the poor and those in adversity 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.

Providing facilities / accommodation from time to time, to local community groups and users for non-church related activities.

During periods of pandemic restrictions in 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. This greatly reduced (for example the number of public meetings that could be held and how and when the Charity’s property could be open for charitable purposes and public attendance. However, it continued 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. During a normal year budgets will be discussed and the trustees track expenditure through the year. However, during this subject year, because of the pandemic restrictions preventing the usual scope of activities, day to day spending decisions were considered and made by the elders and trustees on a need basis with regard to short and medium term financial stability. Key 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 recent years, the use of technology to facilitate virtual meetings at short notice and with the minimum inconvenience have become used more and more to help the trustees make quicker and more timely decisions in this respect.

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. The charity also holds restricted funds for a church plant project in Wakefield city known as ‘Resurrection Church’ whose activities were largely curtailed in the reporting year due to the pandemic restrictions. There is a self-employed Minister of Religion leading that project and he received some financial support for part of the year to reflect the much reduced level of activity of the project was undertaking.

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 2020/21 church reporting and financial year has continued to experience a ‘new normal’ofmuch reduced public meetings and activities due to the pandemic restrictions. ‘The Big Project’ which was launched 2 years prior with the intention of altering the church building internally to increase capacity and general useability, had been significantly scaled back and the need to address immediate issues fire evacuation arrangements in order for the church to continue to be able to meet in any significant numbers .

Pre pandemic there had been an urgent alterations to the access and egress arrangements and the Charity had been able to obtain some grant assistance for these works from the local council. The challenge therefore was to try and make the most of the opportunity to carry out works whilst the building was closed, whilst also grappling with the inability to get contractors to quote or attend, whether due to government restrictions or shortages of labour and particularly materials.

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NEWSPRING TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 31ST AUGUST 2021

The focus in the reporting year was to continue operating the church activities virtually where necessary, in person where possible and safe/worthwhile to do so and to manage the affairs of the charity in such a way as it would have the best possible launch pad to resume its full activities as usual, plus additional activities, which the elders of the church and the trustees are keen is a focus more towards community outreach activity and less of its donation revenue on building work. Through the first half of the year, the weekly Sunday morning services continued to be held virtually and streamed more widely on the internet so that ‘visitors’ could also join the celebrations. In the last couple of months of the reporting year, restrictions allowing, some face to face meetings resumed, socially distanced, but online meeting was still commonplace.

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.

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. The other main impact of the pandemic restrictions was the inability of the church 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 focus instead was on preparation for the lifting of restrictions, including networking, awareness raising and the minister leading the project embarked upon a language course to assist with communications in the multicultural neighbourhood the plant was centred in, as well as other activities.

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.

Kingdom Heart - which had been 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, which also continued this year at Christmas. Also small blessing parcels were distributed more widely to people in the Ossett area who have been struggling in one way or another as a result of the pandemic. The main source of donations and support has been through contributions to the local Ossett foodbank which is well established.

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 for several years, but had to close during the period of restrictions and hopes to be able to restart as soon as restrictions allow.

FINANCIAL REVIEW

REVIEW OF YEAR ENDING 31°" AUGUST 2021 As in previous years, the giving of the church has provided the vast majority of the income for the year and it was very pleasing to see that general unrestricted donation income actually increased compared to the previous year, despite the inability to hold as many meetings and events as would normally be expected. Giving by the church congregation generally remained strong and nearly all giving was by bank transfer with small sums coming in through the reduced number of meetings that were allowed as Pandemic restrictions eased in summer 2021.

The main points of note:

• e Expenditure on the building was higher this year due to the need to carry out extensive roofing repairs, completed in March 2021. 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 and some intial expenditure on works which were just beginning as the church financial year came to a close and will be reported on more fully next year.

• ¢ Salaries were reduced to a much lower level than previous years. As was the case in 2020, consideration was again 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 (in part at least) to pay for the running of the church.

• e General day to day expenditure remained low with decreased outgoing in utility costs and meeting expenses for obvious reasons with the closure of the building.

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NEWSPRING

TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 31ST AUGUST 2021

• ¢ The cash in the bank at the end of the accounting period remains higher than might be expected in normal conditions and comparable to the previous year. This includes unrestricted funds, but also the balances of the two restricted funds as set out below.

• e Income from Gift Aid had reduced this year in a continuing trend. This is mainly due to an increasing number of donors becoming non-taxpayers, or not having paid sufficient tax to cover potential gift aid claims.

The trustees are content that the finances of the Charity are stable and indeed healthier than might have been expected coming through the pandemic and so the Charity remains able to pursue its stated aims, subject to any operating restrictions continuing to be eased as we emerge from the pandemic. There is still a programme of building repairs and improvements that will continue to run and as far as possible will be financed through a balance of unrestricted funds for repairs and existing restricted funds for Big Project improvements. This 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 a first payment on some initial works commenced close to year end, leaving a balance of approximately £29k. The Wakefield Church Plant account continued to receive income and approximately matched expenditure this year. The majority of income was from churches within our related church network, Catalyst, given specifically for the purposes of church planting activity in Wakefield city and to cover the expenses of the same. The balance held on this account is circa £42k at year end.

ACCOUNTING SYSTEM EMBEDDED

The trust church uses QuickBooks Online, streamlining and greatly simplifying the ongoing financial record keeping. The Trustees are very happy with the 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 (either physical or virtual) 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. The trustees reviewed and agreed updated financial controls in relation to the Church Plant restricted fund in the previous reporting year. Additionally there had been decisions taken about financial policy in the light of pandemic restrictions that were made in the previous year and continued to be reviewed periodically during the current year. Given the lackof activity and expenditure generally through the bulk of the reporting year and the stable financial position of the Charity, there has been no particular need to introduce any new processes or protocols in relation to general funds.

RELATED PARTIES

None of the trustees receive any benefit or income from the charity, either financial or otherwise. The only payments that may occur from time to time are for reimbursement of receipted expenditure on items to be used by the Charity. This now reduces each year with the Charity purchasing more items directly itself.

VOLUNTEERS

As noted earlier in the trustees’ annual report, NewSpring benefits from the time and talents of volunteers to put on meetings, events and other activities. These individuals are almost entirely made up of members of the congregation and the purpose of volunteer participation is not related to fundraising for the charity. The duties the volunteers undertake are relatively informal and unstructured and include stewarding meetings, greeting attendees, putting out chairs, and serving refreshments, etc. as and when physical meetings have been permissible. All volunteers are DBS checked and work in pairs where deemed necessary and appropriate. During the reporting year volunteering of this sort has greatly reduced due to the pandemic restrictions.

RESERVES POLICY

The trustees consider it prudent to set aside an amount of money that would allow it to continue to operate for three months if income reduced or ceased with little prior notice. Whilst the trust does carry a balance at year end, it is not sufficient to cover a three month period, but the year generally has been unusual and quite unpredictable. Any reserves policy is to be kept under review and as always, has had to be balanced against the general default position of the trustees, which is not to accumulate or carry excessive balances, as the money received has been given for charitable purposes, not for holding. During the reporting year the trustees closely monitored the financial position of the charity, but the donation income was only slightly reduced and so there was no need to reconsider or amend the reserves policy.

PRINCIPAL FUNDING SOURCES

The principal sources of funding for the charity are the regular and individual gifts from church members and the consequential Gift Aid which the charity is able to reclaim from HMRC. The church had also been holding a capital grant of circa £22k received in the previous reporting year from the local authority and was hopeful that further capital grants may be obtainable in the future.

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NEWSPRING

TRUSTEES’ REPORT (Continued) FOR THE YEAR ENDED 31ST AUGUST 2021

Responsibiities of Trustees

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Charity law requires the Board of Trustees to prepare financial statements for each financial year which give a true
and fair view of the state of affairs of the charity and of its incoming resources and resources expended for the period.
In preparing those financial statements, the Board of Trustees should follow best practice and are required to;
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;
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• — select suitable accounting policies and apply them consistently

• • make judgments and estimates that are reasonable and prudent * comply with applicable accounting standards subject to any material departures disclosed and explained in the financial statements

• © prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation

• The Board of Trustees is responsiblefor maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 1993. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:*® the charity is operating efficiently and effectively o all assets are safeguarded against unauthorised use or disposition and are property applied ® proper records are maintained and financial information used within the charity or for publication is reliable

• • the charity complies with relevant laws and regulations

• The systems of internal control are designed to provide reasonable but not absolute assurance against material misstatement or loss. Signed on their behalf by Trusteeae Printed Name: Abam Scene

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Printed Name:
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NEWSPRING

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST AUGUST 2021

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|||||||||| |---|---|---|---|---|---|---|---|---| |Notes|UnrestrictedFunds|RestrictedFunds|DesignatedFunds|2020/21Total|2019/20Total| |£|£|£|£| |INCOMING|RESOURCES| |Donations &|Legacies|3a|83,550|4,951|3,701|92,203|121,598| |Investment|Income|3b|1|3|-|4|25| |Charitable|Activities|3c|-|13,574|-|13,574|1,420| |Other Income|3d|30|-|-|30|1,629| |Other Incoming|Resources|3e|39|-|100|139|23,790| |TOTAL INCOMING RESOURCES|83,621|18,528|3,801|105,950|148,462| |RESOURCES|EXPENDED| |Costs of Charitable Activities|4a|60,177|24,382|3,234|87,793|112,597| |Costs|of Generating|Funds|4b|-|-|-|-|-| |TOTAL RESOURCES EXPENDED|60,177|24,382|3,234|87,793|112,597| |NET INCOMING/(OUTGOING)|RESOURCES|23,444|(5,854)|567|18,158|35,866| |TRANSFERS|BETWEEN|FUNDS|-|-|-|=|se| |NET MOVEMENT IN|FUNDS|23,444|(5,854)|567|18,158|35,866| |RECONCILIATION|OF|FUNDS:| |Balances|Brought|Forward|114,789|77,932|3,715|196,436|160,571| |BALANCES CARRIED FORWARD|138,233|72,078|4,283|214,594|196,436|

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All of the Charity's operations are classed as continuing operations.

The notes form part of these financial statements, found on pages:-9 to 17

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NEWSPRING

BALANCE SHEET AS AT 31 AUGUST 2021

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |Fund|Funds|31-Aug-21|31-Aug-20| |£|£|£| |Fixed|Assets|Notes| |Tangible Assets|2|315,234|-|315,234|292,635| |Investment|Assets|v4|-|-|-|=| |Current|Assets|315,234|-|315,234|292,635| |Debtors|&|Prepayments|9|13,321|-|13,321|8,151| |Cash|at|bank and|in|hand|8|8,191|72,078|80,270|94,072| |Total|Current Assets|21,512|72,078|93,591|102,223| |Creditors:|due|within|one|year|10|19,016|-|19,016|19,444| |NET CURRENT ASSETS|2,496|72,078|74,574|82,779| |TOTAL ASSETS|less|current|liabilities|317,730|72,078|389,808|375,414| |Creditors:|due|in|more|than|one|year|11|175,215|-|175,215|178,978| |FUNDS|OF|THE|CHARITY| |General|Funds|138,232|-|138,232|114,789| |Restricted|funds|5|-|72,078|72,078|77,932| |Designated|Funds|6|4,283|-|4,283|3745| |TOTAL FUNDS|142,515|72,078|214,593|196,436|

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NEWSPRING NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2021

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year.

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:

• the charity becomes entitled to the resources;

• the trustees are virtually certain they will receive the resources; and

• 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 resources 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.

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.

Contractual Income and Performance Related Grants

This is only included in the SOFA once the related goods or services has been delivered.

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 income receivable.

Volunteer Help

The value of any voluntary help received is not included in the accounts and Is described in the Report of the Trustees.

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 is the estimated value to the charity of the service or facility received.

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.

This page does not form part of the statutory financial statements

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NEWSPRING NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2021 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. the resources, eg allocating property costs by floor areas, or per capital, staff costs by the time spent and other costs by their usage.

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|||||||| |---|---|---|---|---|---|---| |Fund|Accounting| |Funds|held|by|the|charity|are|either:|

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1. Unrestricted funds These are funds which can be used in accordance with the charity's objectives, at the discretion of the trustees.

2. Restricted funds

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||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |These|are|funds|that|can|only|be|used|for|particular|restricted|purposes|within|the objects|of the|charity.| |3.|Designated|funds| |These funds|are funds|set|aside by the trustees|out|of|unrestricted|general funds|for|specific|purposes|or| |projects.| |Further explanation|of|the nature and|purpose|of each|fund|is|included|in|the notes|to the financial|statements.|

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Fixed Assets

Fixed Assets 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 over their estimated useful lives. The rates applied are as follows:

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General Equipment 20% Reducing Balance Basis
Fixtures & Fittings & Big Project costs 10% Reducing Balance Basis
Project Costs 33% Straight Line Basis
There has been no change to the accounting polices (Variation rules and methods of accounting) since last year.
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This page does not form part of the statutory financial statements

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NEWSPRING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2021

2. TANGIBLE FIXED ASSETS

	Land & Buildings	Project Costs		Fixtures Fittings	& & Big.	General Equipment	2020/21
				Project costs
Cost	£	£		£		£	£
At 1 September 2020	270,000		-	44,263		21,317	335,580
Additions	-		-		31,879	-	31,879
At 31 August 2021	270,000		-		76,142	21,317	367,459
Accumulated Depreciation
At 1 September 2020	-		-		24,701	18,244	42,944
Charge for the Year	-		-		7,768	1,513	9,281
At 31 August 2021	-		-		32,469	19,756	52,225
Net Book Value
At 31 August 2021 At31August2020	270,000 270,000		- -	43,673 19,562		1,561 3,073	315,234 292,635

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 2021: see note 10 of the Reports & Financial Statements

This page does not form part of the statutory financial statements

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NEWSPRING

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2021

3. INCOMING RESOURCES

3. INCOMING RESOURCES
		Note	Unrestricted Funds	Restricted Funds	Designated Funds	Total 2020/21	Total 2019/20
			£	£		£	£
a) Donations & Legacies
Tithes, gifts and offerings	:		70,325	-	3,701	74,027	66,261
Gifts & Donations			-	1,600	-	1,600	41,386
Gift Aid Tax Refund			13)225	2,671	-	15,897	13,951
Building Fund Donations			-	680	-	680	-
b) Investment Income			83,550	4,951	3,701	92,203	121,598
Interest Received			1	3	-	4	25
c) Incoming from Charitable Activities			1 3 - 4 25 —o——SESESESESEEoooommwaa=s=zqu=Ea_=_loeoe———— ee
Activities & events			-	-	-	-	1,280
Conference& Seminars			-	-	-	-	140
Wakefield Church Plant Income			-	13,574	-	13,574	-
d) OtherTrading Activities			=	13,574	-	13,574	1,420
Room Hire			30	-	-	30	1,629
e) OtherIncoming Resources			30	-	-	30	1,629
Grants			-	-	-	-	23,509
Other Income			39	-	100	139	281
			39	-	100	139	23,790

This page does not form part of the statutory financial statements

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NEWSPRING NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2021

5. RESTRICTED FUNDS

CURRENT FINANCIAL YEAR

	Balance			Unrealised				Balance
	01-Sep-20	Income	Expenditure	Gain/Loss		Transfer		31-Aug-21
	£	£	£	£		£		£
Big Project Fund	33,997	3	(4,960)		-		-	29,040
Wakefield Church Plant	43,507	16,245	(17,042)		-		-	42,710
Outreach Fund	313	-	-		-		-	313
Visiting Speaker Funds	-	-	-		-		-	=
Other Earmarked Gifts	116	1,600	(1,600)		-		=	116
Building Fund	-	680	(780)		-		=	(100)
PREVIOUS FINANCIAL YEAR
	Balance			Unrealised
	01-Sep-19	Income	Expenditure	Gain/Loss		Transfer		31-Aug-20
	£	£	£	£		£		£
Big Project Fund	14,542	24,092	(4,637)		-		-	33,997
Wakefield Church Plant	36,969	35,895	(29,357)		-		-	43,507
Outreach Fund	313	-	-		-		-	313
Visiting Speaker Funds	-	714	(714)		=		=	=
Other Earmarked Gifts	100	6,283	(6,267)		-		-	116
	51,924	66,984	(40975)		=		=	77,932

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

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 one-off 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.

This page does not form part of the statutory financial statements

14

NEWSPRING

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31ST AUGUST 2021

4. RESOURCES EXPENDED
	Note	Unrestricted Funds	Restricted Funds	Designated Funds	Total 2020/21	Total 2019/20
		£	£		£	£
Charitable Activities:-
Activities & Events		-	-	-	-	1,140
Big Project Costs		-	-	-	-	4,637
Building Repairs & Maintenance		11,224	2,630	100	13,954	3,081
Church Meeting Costs		374	-	-	374	1,244
Conference & Seminar Costs		-	-	-	-	322
Depreciation Expenses		6,171	3,110	-	9,281	6,080
Equipment Costs		6	-	-	6	712
Gifts & Donations		-	-	-	-	1,397
License& Subscriptions		1,455	-	-	1,455	1,445
Ministry Expenses		128	-	-	128	253
Ministry Gifts		30	-	3,134	3,164	-
Ministry Support		13,175	1,600	-	14,775	29,645
Office		87	-	-	87	326
Outreach & Evangelism		332	-	-	332	265
Seed Fund		-	-	-	-	3,011
Staff		8,647	-	-	8,647	10,769
Sunday School		-	-	-	-	-
Telephone		-	-	-	-	376
Training Utilities		300 2,031	= -	= -	300 2,031	< 2,336
Wakefield Church Plant		2,500	-	-	2,500	29,357
Sundries		-	17,042	-	17,042	(2)
Mortgage payments		13,228	-	-	13,228	-
Governance costs:-		-	-	-	-	-
Independent Examiner Fee		12	-	-	12	1,188
Insurance Costs		.	-	-	-	1,488
Bank& Interest Charges		12	-	-	12	13,526
Legal & Professional fees		465	-	-	465	-
		60,177	24,382	3,234	87,793	112,597

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13

NEWSPRING

NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2021

6. DESIGNATED FUNDS

CURRENT FINANCIAL YEAR

	Balance			Unrealised			Balance
	01-Sep-20	Income	Expenditure	Gain/Loss		Transfer	31-Aug-21
	£	£	£	£		£	£
Building Fund	-	100	(100)		-	-	=
Seed Fund	3,715	3,701	(3,134)		-	-	4,283
	3,715	3,801	(3,234)		-	-	4,283
PREVIOUS FINANCIAL YEAR
	Balance			Unrealised
	01-Sep-19	Income	Expenditure	Gain/Loss		Transfer	31-Aug-20
	£	£	£	£		£
Building Fund	-	540	(2,009)		-	1,469	=
Seed Fund	3,409	3,317	(3,011)		-	-	3,745
	3,409	3,857	(5,020)		-	1,469	3,715

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.

This page does not form part of the statutory financial statements

15

NEWSPRING

NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2021

7. INVESTMENTS

The Charity held no investment assets during this or the previous financial period.

8. CASH AT BANK AND IN HAND

8. CASH AT BANK AND IN HAND
	Unrestricted	Restricted	Designated	Total	Total
	Funds	Funds	Funds	31-Aug-21	31-Aug-20
	£	£		£	£
Wakefield Church Plant A/c	(38,935)	72,078	4,283	37,426	40,894
Big Project A/c	1124	-	-	1,121	33,388
Savings A/c	10,919	-	-	10,919	10,918
Current A/c	30,437	-	-	30,437	8,504
Petty Cash	368	-	-	368	368
	Py SH):a F's Ey. nS2%
9. DEBTORSAND PREPAYMENTS
	Unrestricted	Restricted	Designated	Total	Total
	Funds	Funds	Funds	31-Aug-21	31-Aug-20
	£	£		£	£
Trade Debtors	13,321	-	-	13,321	8,151
	13,321	-	-	13,321	8.151
10. CREDITORSANDACCRUALSAMOUNTS	FALLING DUE WITHIN	ONE YEAR
	Unrestricted	Restricted	Designated	Total	Total
	Funds	Funds	Funds	31-Aug-21	31-Aug-20
	£	£		£	£
Deferred Grants	825	-	-	825	825
Kingdom Bank Mortgage	16,991	-	-	16,991	16,991
Sundry Creditors	-	-	-	-	440
HMRC	0	=	=	0	=
Independent Examiner's Fee	1,200	-	-	1,200	1,188
	19,01	-	-	19,01	19

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.

11. CREDITORS AND ACCRUALS AMOUNTS FALLING DUE IN MORE THAN ONE YEAR

			Unrestricted	Restricted		Designated		Total	Total
			Funds	Funds		Funds		31-Aug-21	31-Aug-20
			£	£				£	£
Kingdom	Bank	Mortgage	175,215		-		-	175,215	178,978
			175,215		-		-	175,215	178,978

This page does not form part of the statutory financial statements

16

NEWSPRING NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2021

12. STAFF COSTS AND NUMBERS

	TOTAL	TOTAL
	2020/21	2019/20
	£	£
Gross Wages & Salaries	8,647	10,769
Employer's National Insurance Costs	-		-
Employer's Pension Contributions	-		-
	——-8,647_	——10,769_
Averagenumber ofemployees whowereengaged in each ofthe following activities:
	TOTAL	TOTAL
	2020/21	2019/20
Charitable Activities	2		2
	eel	=	s

Average number of employees who were engaged in each of the following activities:

The Charity operates a PAYE scheme to pay all employed members of staff and no employees received emoluments in excess of £60,000.

(2020- None)

13. TRUSTEES AND OTHER RELATED PARTIES

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 payments were made to trustees or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them.

(2020- None)

14. 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 reviewof 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.

15. RESERVES POLICY

The Trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees will endeavour not to set aside funds unnecessarily.

16. 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 Trustees' report. 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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i7

NEWSPRING

INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2021

Report to the trustees/ members of NewSpring Church on the accounts for the year ended 31st August 2021.

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: . examine the accounts under section 145 of the Charities Act, . 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 . 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

1. 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 . to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act

have not been met; or

1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Donna Leppitt

Independent Examiners Ltd Unit 2 : The Broadridge Business Centre DrAsp Delling Lane Bosham PO18 8NF Date: 29th June 2022

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