ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST AUGUST 2022
NEWSPRING CHURCH
CHARITY REGISTRATION NUMBER 1052699
Independent Examiners Ltd
Unit 2 The Broadbridge Business Centre Delling Lane Bosham PO18 8NF
NEWSPRING CHURCH
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
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Legal and Administrative Information 3
Trustees' Report 4 to 8
Independent Examiner's Report on the Accounts 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Accounts 12 to 20
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NEWSPRING CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
CHARITY NUMBER 1052699 WORKING NAMES Wakefield Covenant Community (Old Name) The King's Church, Wakefield (Old Name) START OF FINANCIAL YEAR 1st September 2021 END OF FINANCIAL YEAR 31st August 2022 TRUSTEES AT 31 AUGUST 2022 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 INSTRUMENT
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
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The advancement of the Christian Faith.
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The relief of persons who are in conditions of need, hardship or distress or who are aged or sick.
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The advancement of education on the basis of Christian principles.
CORRESPONDENCE ADDRESS
PRIMARY BANKERS
INDEPENDENT EXAMINER
The Newspring Centre Illingworth Street Ossett West Yorkshire WF5 8AL HSBC Bank plc 66 Westgate Wakefield West Yorkshire WF1 1XB Donna Leppitt Independent Examiners Ltd Unit 2 The Broadridge Business Centre Delling Lane Bosham PO18 8NF
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NEWSPRING CHURCH
TRUSTEES' REPORT FOR THE YEAR ENDED 31ST AUGUST 2022
Trustees
Adam Sessions Julia Ford John Mellor Robert Haley
The Trustees present their annual report and financial statements of the charity for the year ended 31[st] August 2022.
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:
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.
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.
Following the end of Coronavirus restriction just prior to the beginning of the reporting year the church was able to resume a full calendar of services and meetings and also see the building re-open for use by other local groups such as the Brickhouse Youth Club, Local Vocals community choir and PCC community engagement meetings.
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. Budgets will be discussed for projects, progammes and general church activities and the trustees track expenditure through the year. 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. Trustees meeting began being virtual during 2020 and have remained as such for the reporting year, this being more convenient and cost effective.
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 has also been holding restricted funds for a church plant project in Wakefield city known as ‘Resurrection Church’. However, during the reporting year it was agreed by the Trustees in consultation with the donors of the funds, that another church-based charity with similar objectives (Freedom Church Trust – Charity No.1191043) would take oversight of this activity and the proceeds of this restricted account were duly transferred to them in summer 2022.
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NEWSPRING CHURCH
TRUSTEES' REPORT FOR THE YEAR ENDED 31ST AUGUST 2022
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 first few months of the reporting year saw the final social distancing measures withdrawn and public meetings resume at the previous level. At the heart of this are the regular Sunday services, which is the centre of gravity for all church activity, and numbers attending have grown as people re-learn the Sunday morning habit and new visitors continue to join us, giving them a chance to explore the Christian faith for themselves first hand. Numbers fluctuate with the seasons, but it is not unusual to see 6070 people in attendance and it has been fantastic to welcome a handful of new regular congregants this year.
Sunday meetings run on the normal format and some investment was made in camera equipment to enable us to continue to video meeting for later distribution. There has been no obvious demand for live streaming, but we have that capability should it be required.
Following the successful completion of building works last year, this year we were able to obtain a further capital grant of £15,000 from Wakefield Council under their Local Capital Grants Programme (LCGP). Ever since having moved into the current building in 2013, the lack of facilities to prepare and serve food and drinks has limited our ability to expand the use of the facilities for wider community benefit and so a proposal and designs were prepared by our building consultants, to widen doorways, move an internal wall and create and fit out a new kitchen and undertake extensive internal remodelling of what was previously a youth room and create a new dining area, fully finished, furnished and decorated to a pleasingly high standard. The works were completed in July 2022 and immediately began to be used by both the church to host several lunches, but also by other groups, particularly the Brickhouse Youth Club and Jelly Babies mother and toddler group.
Key Groups and Activities:
Pastoral Groups - These are five main groups spread across Ossett, Wakefield and Castleford where church members live were continuing and had moved from online back to in-person meetings – gatherings in homes where people share life with each other and seek to grow in faith together through small group teaching, prayer and encouragement, whilst also expressing God’s love to those they are connected with in their own neighbourhoods.
Mission Groups and Triplets – These are small groups who meet on the basis of friendship and interest and in the case of Mission Groups, seek to make have an outreach element, whether its getting involved in community sport or having a pub quiz team to bring God’s love into those places and to make the people of God more visible within the normal day to day social activities of Ossett and the surrounding area.
Prayer Meetings – The church meet on the first Wednesday of every month to pray together for a variety of needs, and to seek God's grace and blessing on the chuch, the town and the wider world. There is also a week of fasting and daily prayer every January and this year was no exception, with all who were involved, greatly encouraged and stirred by God’s heart for his people.
Jelly Babies – run by church members, is a very successful and well attended weekly group for mothers and toddler in the locality to come for fellowship and support on a weekly basis. They were able to re-open the doors this year with new people joining those who had attended pre-pandemic and enjoying being together with their children in a supportive and encouraging environment.
Resurrection Church – in late 2019, the previous lead elder and his wife, David & Karen Lavery, had been sown out to plant a new church congregation in Wakefield city. Pandemic restrictions and the wider societal consequence had severely curtailed its ability to get traction in 2020 and 2021, but with restrictions lifted, the small team were able to meet together in Agbrigg on Sunday evenings with people joining through the course of the year. With David and Karen developing a closer working relationship with Freedom Church Leeds, and following discussions with the elders, it was agreed that Freedom Church would take over financial responsibility for Resurrection Church and its operations/activities, and this transition was completed over the Spring / Summer of 2022.
Kingdom Heart – set up, and run by church members volunteering their time, together with money from the Seed Fund to provide support, aid and gifts to various groups and individuals were this Christmas again, able to provide ‘Blessing Hampers’ to a number of local families in need. Also ‘ Boxes of Hope’ small blessing parcels were distributed more widely in the Ossett area, focussed on small local businesses to show support as they were emerging from the challenges of the pandemic period.
Ossett Foodbank – Fortnightly food collections from NewSpring are delivered to the Ossett Foodbank and this continued through the reporting year. In addition there has been an initiative to give gifts for children of users of the foodbank at Christmas time.
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NEWSPRING CHURCH
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31ST AUGUST 2022
Community Groups Hosted - example include:
The Brickhouse Youth Club – a large number of local young people 11-16 meet at the NewSpring Centre every Thursday evening where a range of activities are on offer, from baking, arts and crafts, table sports, video gaming, a homework club and many other fun things. The young people come from families across the area and a team of dedicated and talented volunteers ensure a safe and encouraging environment, which has successfully run for several years now.
Local Vocals - this successful pop choir has been meeting for several years now in our main auditorium on the first floor also on a Thursday night for their regular practices. They have many enthusiastic and talented singers who perform at events and functions in the local area.
Police and Communities Together (PACT) we provide facilities for these meetings which are held monthly at the Newspring Centre, giving local residents a chance to discuss local issues or concerns with representatives of West Yorkshire Police.
FINANCIAL REVIEW
REVIEW OF YEAR ENDING 31[ST] AUGUST 2022
As in previous years, the giving of the church congregation has provided the vast majority of the income for the year and the increase in general unrestricted donation income during the reporting year was significantly higher than the previous year (£122k versus £90k). Giving by the church congregation generally remained strong all year and the vast majority was given by bank transfer with the remainder coming in through the traditional Sunday offering baskets.
In the same way that income increased, total expenditure this year was higher by a similar proportion (£102k this year versus £74k) for previous year. Consequently the church current account which contains the unrestricted funds ended the financial year at a similar level to the outset: £33k and £31k respectively.
The main points of note:
The increase in donation income was undeniably linked to the recommencement of physical meetings. Inevitably the charity’s costs also increased with additional building overheads/outgoings.
Expenditure on the building was higher this year as the £15k capital grant the church received for the works for the kitchen and dining room works needed to be added to to cover the full costs of those works, together with the usual raft of building repairs.
Payroll and wages outgoing was flat due to decisions not to increase salaries during or immediately following emergence from the pandemic. However, ministry support increased due to the decision for the church to crystallise the residue of its financial commitment to the Resurrection Church plant and transfer all funds and future responsibility for the project to Freedom Church.
This includes unrestricted funds, but also the balances of the two restricted funds as set out below.
Despite the circa 35% increase in unrestricted giving, the amount of gift aid that was claimed reduced. This is mainly due to a trend that we’ve increasingly seen in recent years as donors either become non-taxpayers, or not having paid sufficient tax.
The trustees are satisfied that the finances of the Charity are stable and in good health at period end. The Charity remains able to pursue its stated aims and there is still a programme of building works that will continue to run for several years and as far as possible will be financed through a balance of unrestricted funds for repairs and existing ‘Building Fund’ balances. This will be supplemented by grants or special offerings wherever possible, with the charity’s focus continuing to be people and activities/programmes/outreach.
RESTRICTED FUNDS
NewSpring held the following restricted funds in the reporting year:
The 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. It was originally established in September 2018.
Wakefield Church Plant (Resurrection Church)
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 purpose of establishing a new community of believers within the city. This balance of this fund was transferred to (Freedom Church Trust – Charity No.1191043) prior to the end of the reporting year.
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 their donation(s) to be used for the development and improvement of the NewSpring Centre in accordance with the building projects and programmes that the elders and trustees decide to undertake to better help the charity meet its charitable objectives.
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NEWSPRING CHURCH
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31ST AUGUST 2022
Seed Fund
Earmarked giving for individuals wishing their donation to be used for the purposes of the Seed Fund which is for meeting needs, alleviating poverty and associated charitable initiatives. The Elders may also from time to time decide to designate an amount of unrestricted funds into the Seed Fund, which thereafter become restricted.
Accounting System
The Charity 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 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.
The trustees reviewed financial controls in relation to bank account access and signing limits during the reporting year which coincided with the Wakefield Church Plant account being closed.
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.
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. The trust does carry a balance at year end sufficient to cover a three month period in terms of essential base spending: mortgage, insurances, salaries and utilities. At financial year end that amount was determined to be no more than £4k per month. 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 has strengthened with more than six months outgoings in unrestricted, otherwise uncommitted funds. The trustees see no current need to reconsider or amend the reserves policy.
RISK MANAGEMENT
The trustees regularly review its insurance cover in place and are satisfied that the current policies it holds provides adequate cover for all the Charity’s liabilities, including trustee liability. The trustee responsible for the upkeep of the accounts is an accountant and issues monthly management reports for review and discussion as necessary. Appropriate DBS checks are carried out for those working with children or other vulnerable groups within the context of the Charity’s activities. The safeguarding policy is reviewed regularly and updated as necessary.
Risk Assessments are also carried out for all the regular activities undertaken by the church both in the context of church meetings, and office/staff activity.
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 in receipt of a capital grant during the reporting year.
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NEWSPRING CHURCH TRusfEES' REPORT (C4ntknu•d) FOR THE YEAR EIIDED 31sr AUGLisf 2022 Chwy Iw the rlTrusteES to PreptK st#eM ftr a true d f dthe st&e dthe ch¥y and d t5 reSrCeS thv put¢J. In prwwkng those I¢la1 siathiaits. the lTr4e5 best prxtte we rwutsj fo,. seh-t sukab xcwntkng prths •pp th c(ffi515ttht fflludgmwts and tstknate> th& we pnKlent cunpty 4>pk) St¥d5 gJbt 104hiymtrW deputU5 d15ck6a1 o¥4Jlaknal kn the 5t&rnts pITpwethe stat&7$ trb the 9th9 unk * & hwprwe1QpreSuMeth the ch¥ty ffltUe The rfTrpJstee5 15 reSsle makntainry prrsjer d&ctse ¥h rtsrJcffj& at tkne the p(6tffi dthechRy Ind to theM to thsurtthat fknantw st&emwt5 comptyf the kt 1993. Th tre 0 respwstJ skn]u•din9 the assets rfthe chwty heTh tathg reastfiab stE•s fry the prv•Yntkn and det&tkn Lfrwd Lthw to prtr4&ae r¥5ry1Jl• •s$urwKe that... the ch¥tV CLYnpls Mh The systems Ctrrj de5nèJ to Prle Ixrt nt knsthrte assurance J•knst m4tffW pr1 by theTrustee5 m.................... ..... 2v23 Sk]ntsJ w th* beh&by TnJ5tee.-
NEWSPRING CHURCH
INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
Report to the trustees/ members of Newspring Church on the accounts for the year ended 31st August 2022.
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:
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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
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have not been met; or
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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 Delling Lane Bosham PO18 8NF Date: 26th June 2023
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NEWSPRING CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST AUGUST 2022
| INCOMING RESOURCES Donations & Legacies 3a Investment Income 3b Charitable Activities 3c Other Income 3d Other Incoming Resources 3e TOTAL INCOMING RESOURCES RESOURCES EXPENDED Costs of Charitable Activities 4 TOTAL RESOURCES EXPENDED TOTAL FUNDS BROUGHT FORWARD Prior Year Adjustment TOTAL FUNDS CARRIED FORWARD NET MOVEMENT IN FUNDS NET INCOMING/(OUTGOING) RESOURCES TRANSFERS BETWEEN FUNDS |
Revised Unrestricted Designated Restricted Total Total Funds Funds Funds 2021/22 2020/21 £ £ £ £ 113,200 5,223 2,632 121,055 92,203 4 - 4 8 4 - - 13,157 13,157 13,574 2,413 - - 2,413 30 47 - 15,160 15,207 139 |
|---|---|
| 115,663 5,223 30,954 151,840 105,950 |
|
| 115,057 3,425 30,542 149,024 88,981 |
|
| 115,057 3,425 30,542 149,024 88,981 |
|
| 606 1,798 411 2,816 16,970 23,748 - (23,748) - - |
|
| 24,353 1,798 (23,336) 2,816 16,970 |
|
| 137,044 4,283 72,078 213,405 197,624 1,188 - - 1,188 - |
|
| 161,398 6,081 48,742 216,221 214,593 |
All of the Charity's operations are classed as continuing operations.
The notes form part of these financial statements, found on pages:-
12 to 20
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NEWSPRING CHURCH BALAIKE SHEET AS AT 31 AUGUST 2022 Unrtstrf£ted D¢5Jn•J Restrbxal Fund Funds Fund Totsl 31-A4p22 31•Aup2X FIX Aw••ts To$Set5 Investmw¢t Assets NLX 338.428 338,428 315.234 31 DebtW5 & Cash at bank an4 trl h•bd IL,622 11,622 58A71 13,321 80270 6x181 482 IX12 Crtd1l sjue ¥h eye¥ 21.671 21,671 19,016 {602) 48042 42.341 74.574 334 170.629 170.629 175.215 FU•IDSOF ThE CHARrrY Genw Funds Restrrtal Fun¢Js Desbjnatal Funds 161298 161.298 48,842 6M8I 138.132 72.178 4,283 48042 6AJBI TQTAL VUIIDS ?6K 2023 ApprtrAI by the Ttff5 the.-..-...-... .. skJnd rn th* bthal byTruste&.--.-. .. . .... Prknt 14•ne'.
NEWSPRING CHURCH
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
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.
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 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 CHURCH
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
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.
Investments
Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at trustees' best estimate of market value.
Pensions
Pension contributions are charged to the Statement of Financial Activities as they become payable.
Fund Accounting
Funds held by the charity are either:
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
These are funds that can only be used for particular restricted purposes within the objects of the charity.
3. Endowment 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.
Fixed Assets
Fixed Assets are capitalised if they can be used for more than one year and cost at least £1,000. 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:
General Equipment 20% Straight Line Basis Fixtures & Fittings & Big Project costs 10% Straight Line 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.
This page does not form part of the statutory financial statements
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NEWSPRING CHURCH
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
2. TANGIBLE FIXED ASSETS
| Additions Accumulated Depreciation At 1 September 2021 Charge for the Year Cost At 1 September 2021 At 31 August 2022 At 31 August 2022 Net Book Value At 31 August 2022 At 31 August 2021 |
Land & Buildings Project Costs Fixtures & Fittings & Big Project costs General Equipment 2021/22 £ £ £ £ 270,000 - 76,142 21,317 367,459 - - 34,234 1,379 35,613 |
|---|---|
| 270,000 - 110,376 22,696 403,072 |
|
| - - 32,469 19,756 52,225 - - 11,458 961 12,418 |
|
| - - 43,926 20,717 64,643 |
|
| 270,000 - 66,449 1,979 338,428 |
|
| 270,000 - 43,673 1,561 315,234 |
The annual commitments under non-cancelling operating leases and capital commitments are as follows:
31st August 2021: see note 10 of the Reports & Financial Statements 31st August 2022: see note 10 of the Reports & Financial Statements
This page does not form part of the statutory financial statements
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NEWSPRING CHURCH
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
3. INCOMING RESOURCES
| Unrestricted | Designated | Restricted | Restricted | Total | Total | |
|---|---|---|---|---|---|---|
| Funds | Funds | Funds | 2021/22 | 2020/21 | ||
| £ | £ | £ | £ | £ | ||
| a) Donations & Legacies | ||||||
| Tithes, gifts and offerings | 99,238 | 5,223 | - | 104,462 | 74,027 | |
| Gifts & Donations | - | - | 1,124 | 1,124 | 1,600 | |
| Gift Aid Tax Refund | 13,962 | - | 678 | 14,640 | 15,897 | |
| Building Fund Donations | - | - | 830 | 830 | 680 | |
| 113,200 | 5,223 | 2,632 | 121,055 | 92,203 | ||
| b) Investment Income | ||||||
| Interest Received | 4 | - | 4 | 8 | 4 | |
| 4 | - | 4 | 8 | 4 | ||
| c) Incoming from Charitable Activities | ||||||
| Wakefield Church Plant Income | - | - | 13,157 | 13,157 | 13,574 | |
| - | - | 13,157 | 13,157 | 13,574 | ||
| d) Other Trading Activities | ||||||
| Room Hire | 2,413 | - | - | 2,413 | 30 | |
| 2,413 | - | - | 2,413 | 30 | ||
| e) Other Incoming Resources | ||||||
| Other Income | 47 | - | 15,160 | 15,207 | 139 | |
| 47 | - | 15,160 | 15,207 | 139 |
This page does not form part of the statutory financial statements
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NEWSPRING CHURCH
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
| 4. RESOURCES EXPENDED Governance costs:- Independent Examiner Fee Depreciation Expenses Equipment Costs Building Repairs & Maintenance Church Meeting Costs Conference & Seminar Costs Insurance Costs License & Subscriptions Refreshments & catering Wakefield Church Plant Sundries Mortgage payments Grant to Freedom Church Charitable Activities:- Activities & Events Ministry Expenses Ministry Gifts Ministry Support Office Outreach & Evangelism Staff Sunday School & Youth work Training Utilities Bank & Interest Charges Legal & Professional fees |
Revised Unrestricted Designated Restricted Total Total Funds Funds Funds 2021/22 2020/21 £ £ £ £ £ 203 - - 203 - 1,614 - 2,470 4,084 13,954 545 - - 545 374 143 - 165 308 - 5,619 - 6,799 12,418 9,281 1,206 - 484 1,690 6 36,840 - - 36,840 - 1,321 - - 1,321 1,455 320 - - 320 128 - 3,180 634 3,814 3,164 20,812 195 - 21,007 14,775 55 - - 55 87 573 - - 573 332 165 50 16 231 - 8,182 - - 8,182 8,647 87 - 144 231 - 1,118 - - 1,118 300 2,874 - - 2,874 2,031 16,598 - 19,800 36,398 2,500 131 - - 131 17,042 13,180 - - 13,180 13,228 1,765 - - 1,765 1,200 1,573 - - 1,573 - 135 - 30 165 12 - - - - 465 |
|---|---|
| 115,057 3,425 30,542 149,024 88,981 |
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NEWSPRING CHURCH
NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2022
5. RESTRICTED FUNDS
CURRENT FINANCIAL YEAR
| PREVIOUS FINANCIAL YEAR Building Fund Big Project Fund Wakefield Church Plant Outreach Fund Visiting Speaker Funds Other Earmarked Gifts/Gift aid refund Building Fund Restricted Funds:- Total Restricted Funds:- Big Project Fund Wakefield Church Plant Outreach Fund Visiting Speaker Funds Other Earmarked Gifts/Gift aid refund Total |
Balance Unrealised 01-Sep-21 Income Expenditure Gain/Loss Transfer 31-Aug-22 £ £ £ £ £ £ 29,040 15,204 (9,733) - 13,093 47,603 42,710 13,960 (19,830) - (36,840) - 313 - - - - 313 - 165 (165) - - - 16 795 (795) - - 16 - 830 (20) - - 811 |
|---|---|
| 72,078 30,954 (30,542) - (23,748) 48,742 |
|
| Revised Balance Unrealised 01-Sep-20 Income Expenditure Gain/Loss Transfer 31-Aug-21 £ £ £ £ £ £ 33,997 3 (4,960) - - 29,040 43,507 16,245 (17,042) - - 42,710 313 - - - - 313 - - - - - - 116 1,600 (1,600) - (100) 16 - 680 (780) - 100 - |
|
| 77,932 18,528 (24,382) - - 72,078 |
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 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.
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NEWSPRING CHURCH
NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2022
6. DESIGNATED FUNDS
CURRENT FINANCIAL YEAR
| PREVIOUS FINANCIAL YEAR Building Fund Seed Fund Building Fund Seed Fund Total Designated Funds General Funds Total Unrestricted Funds Total Designated Funds General Funds Total Unrestricted Funds |
Balance Unrealised 01-Sep-21 Income Expenditure Gain/Loss Transfer 31-Aug-22 £ £ £ £ £ £ - - - - - - 4,283 5,223 (3,425) - - 6,081 |
|---|---|
| 4,283 5,223 (3,425) - - 6,081 137,044 115,663 (115,057) - 23,748 161,398 |
|
| 141,327 126,109 (121,907) - 23,748 169,277 |
|
| Revised Balance Unrealised 01-Sep-20 Income Expenditure Gain/Loss Transfer 31-Aug-21 £ £ £ £ £ - 100 (100) - - - 3,715 3,701 (3,134) - - 4,283 |
|
| 3,715 3,801 (3,234) - - 4,283 115,976 83,621 (61,365) - - 138,232 |
|
| 119,692 87,422 (64,599) - - 142,515 |
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.
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NEWSPRING CHURCH
NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2022
7. INVESTMENTS
The Charity held no investment assets during this or the previous financial period.
8. CASH AT BANK AND IN HAND
| Wakefield Church Plant A/c Big Project A/c Savings A/c 9. DEBTORS AND PREPAYMENTS Current A/c Petty Cash Trade Debtors |
Unrestricted Designated Restricted Total Total Funds Funds Funds 31-Aug-22 31-Aug-21 £ £ £ £ £ - - - - 37,426 7,956 - - 7,956 1,121 20,001 - - 20,001 10,919 (24,669) 6,081 48,742 30,154 30,437 360 - - 360 368 |
|---|---|
| 3,648 6,081 48,742 58,471 80,270 |
|
| Unrestricted Designated Restricted Total Total Funds Funds Funds 31-Aug-22 31-Aug-21 £ £ £ £ £ 11,622 - - 11,622 13,321 |
|
| 11,622 - - 11,622 13,321 |
10. CREDITORS AND ACCRUALS AMOUNTS FALLING DUE WITHIN ONE YEAR
| Kingdom Bank Mortgage Independent Examiner's Fee Deferred Grants Sundry Creditors |
Unrestricted Designated Restricted Total Total Funds Funds Funds 31-Aug-22 31-Aug-21 £ £ £ £ £ 665 - - 665 825 17,595 - - 17,595 16,991 2,182 - - 2,182 - 1,230 - - 1,230 1,200 |
|---|---|
| 21,671 - - 21,671 19,016 |
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 term period with annual interest rate of 6.75% from Jan-May 22, 7.50% Jun-Oct 22 & 8.25% Nov-Dec 22, with monthly repayments of £1,415.92 Jan-Jun 22, £1501.47 Jul-Nov 22 & £15971.71 Dec 22, totalling £17594.58 in the year. The mortgage commenced during 2013 with maturity in 2043.
11. CREDITORS AND ACCRUALS AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
| Kingdom Bank Mortgage | Unrestricted Designated Restricted Total Total Funds Funds Funds 31-Aug-22 31-Aug-21 £ £ £ £ £ 170,629 - - 170,629 175,215 |
|---|---|
| 170,629 - - 170,629 175,215 |
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NEWSPRING CHURCH
NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2022
12. STAFF COSTS AND NUMBERS
| TOTAL 2021/22 £ Gross Wages & Salaries 8,182 Employer's National Insurance Costs - Employer's Pension Contributions - 8,182 Average number of employees who were engaged in each of the following activities: TOTAL 2021/22 Charitable Activities 2 |
TOTAL 2020/21 £ 8,647 - - |
|---|---|
| 8,647 | |
| TOTAL 2020/21 2 |
The Charity operates a PAYE scheme to pay all employed members of staff and no employees received emoluments in excess of £60,000.
(2021 - 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.
(2021 - 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 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.
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.
17. PRIOR YEAR ADJUSTMENT
A negative balance of £100.00 on Building Fund-Restricted should have been transferred to General Fund in the prior year. Total funds brought forward was unaffected. £100.00 earmarked for food bank was paid across to St Catherine's Church Centre 13/09/19 - Prior Year fund adj from Earmarked to General.
Independent Examiners Fees included in accounts in 20/21 was £12 to the P&L account but should have been £1200. The funds brought forward have been adjusted by £1188 to reflect a true and fair view of the Charity's closing position as at 31st August 2022.
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