**REGISTERED CHARITY NUMBER: 1056821**
## **REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021**
## **FOR**
**THE VALLEY CHURCH ANDOVER TRUST**
Richard Kyte Associates Chartered Certified Accountant
126 Weyhill Road Andover Hampshire SP10 3BE
**THE VALLEY CHURCH ANDOVER TRUST**
## **CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 28 February 2021**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|4|
|**Independent Examiner's Report**||5||
|**Statement of Financial Activities**||6||
|**Balance Sheet**||7||
|**Notes to the Financial Statements**|8|to|12|
**THE VALLEY CHURCH ANDOVER TRUST**
## **REPORT OF THE TRUSTEES for the Year Ended 28 February 2021**
The trustees present their report with the financial statements of the charity for the year ended 28 February 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The trustees when planning the activities for the year have considered the Commissions guidance on public benefit, and in particular the specific guidance on charities for the advancement of religion. The activities undertaken in the year in furtherance of the principle objective, as stated in its Trust Deed dated 11 June 1996 are:
1. To advance the Christian religion to proclaim and further the Gospel of God and His Son the Lord Jesus Christ and to preach and teach the Christian Faith.
2. To relieve sickness, poverty and distress and persons in need by virtue of age, social or economic circumstances in particular but without prejudice to the generality of the foregoing by the provision of accommodation or shelter.
3. To advance education whether of children (above or below compulsory school age) or of adults.
4. For such other charitable purposes as the trustees shall think fit.
## **Significant activities**
The main activities during the year were as follows:
1. Organizing services for the purpose of Christian worship and teaching as appropriate.
2. Offering support to various groups of people within the community (e.g. single parents and parents). 3. Running a coffee shop as a means of outreach to promote the Christian faith.
4. Providing facilities to enable a debt advice charity to provide its services in a timely and cost-efficient manner. (Andover branch of Frontline Debt Advice).
5. Providing facilities for homeless persons and other individuals and families as requested.
6. Linking with other local churches for combined activities where this is beneficial for church members and/or the community at large.
7. Running an evening homeless drop in for December; the usual January and February service was not possible due to COVID-19 restrictions.
8. A distribution point for the Andover Food Bank
9. Running the Agape House in partnership with Hope into Action (HIA)
## **Volunteers**
The charity has a significant number of volunteers who are involved within the charity to help it achieve its objectives. This includes the running of services and prayer groups for the purpose of Christian worship, work with the homeless, and working in the coffee shop.
Page 1
**THE VALLEY CHURCH ANDOVER TRUST**
## **REPORT OF THE TRUSTEES for the Year Ended 28 February 2021**
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
Our activities were significantly affected by the Coronavirus pandemic. The Bridge Building in its entirety closed to the public in March 2020 and all staff were furloughed; it did not reopen until September. There were also closures for the November lockdown and from Boxing Day 2020 onwards.
In the run up to September, the trust carried out COVID risk assessments for the use of the facilities and created plans to enable activities to recommence in a COVID secure manner. Additional daily cleaning was undertaken from September 2020 onwards to ensure The Bridge was COVID secure as reopening took place.
Café Bridge has continued to be run by the church through this financial year. Along with employment opportunities, it provides supported volunteering and experience for disadvantaged adults, and offers the social environment of a community café for the people of Andover. It also provides a public face that can signpost users to other services operated within the building. While the Café was able to reopen in a COVID secure fashion, the "Pay it Forward" scheme enabling customers to purchase food or drinks on behalf of others continued. A record of this is put on a board and people who are in need can come in and take advantage of this generosity. This has been very successful and is especially appreciated in the school holidays. In the run up to Christmas 2020 the café also provided free hampers of festive goods and supplies to needy families.
Due to the government support for the homeless, the majority of those homeless and in need were housed by the local authority during the lockdowns. There were a couple of individuals whom volunteers were able to help by appointment in a COVID secure manner providing access to a shower and clothes-washing facilities.
When possible within COVID-19 restrictions, we have provided washing and drying of clothes and shower facilities for a wider range of homeless people. Some of these people are referred to us by other agencies in town and some come in having heard of us by word of mouth. Through the catering facilities in the building we have also provided a hot drink and snack. The numbers coming in each day vary from 0 to 6. The Trust continues to enjoy a favourable reputation within the town with groups and individuals regularly making contribution of food or other useful provisions (e.g. sleeping bags, tents).
We were not able to provide the winter drop-in facility in its usual format during the reported year, due to COVID restrictions. Volunteers were recruited from within and outside the church membership to provide a take away meal service, supporting the homeless community safely. This was suspended after a while due to low take up.
We continue to offer facilities in the Bridge building to other Charities, including offices for Impact Network and Frontline Debt Advice - Andover - the debt advice charity - as well as provide trading space for the Vine Trust charity. COVID-19 restrictions have limited the use of The Bridge by other charities and groups but the following have used the Bridge facilities for meetings or training: Inclusion, Petra House Church, Andover Vineyard Church, Age Concern, NHS Clinical Commissioning, NYS Group, Rape & Sexual Abuse Centre, Card Sharks and some Christian Counsellors.
The Agape House project (more details below) involves working in partnership with another Charity, Hope Into Action (Registered Charity Number 1137686). Investors were found to purchase a house which is used to support at least two people in a vulnerable situation (eg ex-offenders or homeless) in suitable and quality accommodation. Although the Agape House has no financial dependency on the Valley Church, the church plays a key role in supporting the project. The church provides oversight of the finances and Human Resources regulation of the project as well as providing, from its membership, key personnel to support and befriend tenants.
We were again able to help a number of individuals and families, with financial assistance when a pressing need was identified.
## **FINANCIAL REVIEW**
## **Financial position**
The Statement of Financial Activities shows a net inflow of unrestricted funds of £22,795, which compares with a net outflow of £4,554 in the previous year. The charity had free reserves (net current assets) of £32,762 relating to unrestricted funds at the year end compared with unrestricted funds of £4,803 at the end of the previous year.
## **Reserves policy**
The trustees aim to have reserves of net current assets in the General Fund which at least equates to six weeks of regular expenditure based on the expenses incurred in the year - a figure of £6,500. The trustees consider that reserves at this level are sufficient to enable the Church to function effectively in the coming year. The total unrestricted net current assets at the year end were £32,762.
## **Going concern**
The trustees have reviewed the ongoing financial position of the charity and are satisfied that it has sufficient working capital to enable it to continue operating for a period exceeding 12 months after the date of this report.
Page 2
**THE VALLEY CHURCH ANDOVER TRUST**
## **REPORT OF THE TRUSTEES for the Year Ended 28 February 2021**
## **REVIEW OF EVENTS AFTER THE YEAR END**
Since the end of the year on which we are reporting, we have fully re-carpeted the offices and landing on the first floor and the lower stairs. We have also repainted the walls and ceilings in the offices. A new room hirer, Koala Club who provide support to neuro-diverse people and their families, has now also started using a number of rooms in The Bridge. This will generate significantly more income as services provided by the club increase.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
Valley Church Andover was established in 1996 under a trust deed. This Trust owns and maintains the building known as 'The Bridge' at 31/33 Bridge Street, Andover. Trustees shall so far as practicable be persons resident in the neighbourhood of Andover in the county of Hampshire and each Trustee is expected to declare their adherence to the doctrinal basis as set out in the Trustees' Minute Book and amended from time to time by the Trustees.
## **Recruitment and appointment of new trustees**
Trustees are appointed by the elders who have spiritual oversight of the church. The trust deed provides for a minimum of 5 and no maximum number of trustees. During the reporting period, in March 2020, Sadly John Stevens died; the Elders are considering a suitable replacement.
## **Risk management**
The Trustees have a duty to identify and review the risks to which the charity is exposed and ensure appropriate controls are in place to provide reasonable assurance against fraud and error. During the reporting period, the Trustees again discussed the best practice for spending controls. The Trustees updated the Financial Controls Policy along with a Spending Authorisation document which detailed who is authorised to spend money on behalf of the trust, to reflect changes in authorised personnel. The trustees also agreed a separate Card Payment policy.
To date, the Trust reported that the finances of the Café have stabilised within a defined level of subsidy. The Trustees and the Treasurer continue to monitor this closely.
As mentioned within the Charitable Activities section of this report, the Trust continued with "the Agape House" project in collaboration with Hope Into Action (HIA). Whilst the Trust receives the balance of rental monies, after a return to the investors and management fees have been deducted, there is a risk that costs could exceed the rental income received.
Also a consideration for the Agape House, is the health and safety of the Trust's volunteers who will be supporting the tenants. As part of the partnership with HIA, they supply all relevant policies and safe working practice documentation. The Trust have signed an agreement with HIA that we will work to these established practices. The Trust has also taken the step to ensure that our liability insurance will also cover our volunteers working at the Agape House.
## **Procedures and policy for grant making and charitable distribution of general funds**
During the year the Church Leadership will meet regularly to discuss where they have identified a need to provide financial support to individuals and organisations (locally, nationally & internationally). As far as grant making is concerned, grants are normally, as a matter of policy, made from restricted funds held by the charity.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Charity number**
1056821
## **Principal address**
31/33 Bridge Street Andover Hampshire SP10 1BW
## **Trustees**
M Barlow Mrs C Carter J Stevens (deceased 7.3.20) A Carter Treasurer N McNally
Page 3
**THE VALLEY CHURCH ANDOVER TRUST**
## **REPORT OF THE TRUSTEES for the Year Ended 28 February 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Independent Examiner** Richard Kyte Associates Chartered Certified Accountant 126 Weyhill Road Andover Hampshire SP10 3BE
## **Bankers**
HSBC 28 - 30 High Street Andover Hampshire SP10 1NU
Approved by order of the board of trustees on 26 October 2021 and signed on its behalf by:
M Barlow - Trustee
Page 4
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE VALLEY CHURCH ANDOVER TRUST**
## **Independent examiner's report to the trustees of The Valley Church Andover Trust**
I report to the charity trustees on my examination of the accounts of The Valley Church Andover Trust (the Trust) for the year ended 28 February 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Richard Kyte Richard Kyte Associates Chartered Certified Accountant 126 Weyhill Road Andover Hampshire SP10 3BE
26 October 2021
Page 5
**THE VALLEY CHURCH ANDOVER TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 28 February 2021**
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
20,734
**Charitable activities**
Charitable Activities
66,990
Investment income
2
4
**Total**
87,728
**EXPENDITURE ON**
Raising funds
25,251
**Charitable activities**
Administrative expenses
38,662
Independent Examination fees
1,320
Charitable Activities
430
**Total**
65,663
**NET INCOME/(EXPENDITURE)**
22,065
**Transfers between funds**
11
730
**Net movement in funds**
22,795
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
295,754
**TOTAL FUNDS CARRIED FORWARD**
318,549|Restricted
funds
£
5,801
-
-
5,801
-
-
-
3,549
3,549
2,252
(730)
1,522
908
2,430|28.2.21
29.2.20
Total
Total
funds
funds
£
£
26,535
29,429
66,990
38,173
4
3
93,529
67,605
25,251
30,794
38,662
30,643
1,320
1,200
3,979
12,009
69,212
74,646
24,317
(7,041)
-
-
24,317
(7,041)
296,662
303,703
320,979
296,662|
|---|---|---|
The notes form part of these financial statements
Page 6
## **THE VALLEY CHURCH ANDOVER TRUST**
## **BALANCE SHEET 28 February 2021**
|Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
8
285,787
**CURRENT ASSETS**
Debtors
9
624
Cash at bank
34,413
35,037
**CREDITORS**
Amounts falling due within one year
10
(2,275)
**NET CURRENT ASSETS**
32,762
**TOTAL ASSETS LESS CURRENT LIABILITIES**
318,549
**NET ASSETS**
318,549
**FUNDS**
11
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
-
-
2,430
2,430
-
2,430
2,430
2,430|28.2.21
Total
funds
£
285,787
624
36,843
37,467
(2,275)
35,192
320,979
320,979
318,549
2,430
320,979|29.2.20
Total
funds
£
290,951
2,218
5,646
7,864
(2,153)
5,711
296,662
296,662
295,754
908
296,662|
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 26 October 2021 and were signed on its behalf by:
A Carter - Trustee
The notes form part of these financial statements
Page 7
**THE VALLEY CHURCH ANDOVER TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 28 February 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost Fixtures and fittings - 20% on reducing balance
Equipment with a purchase price of £500 or less is written off when the asset is acquired.
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Going concern**
There are no material uncertainties about the charity's ability to continue as a Going Concern.
## **2. INVESTMENT INCOME**
||28.2.21||29.2.20||
|---|---|---|---|---|
||£||£||
|Deposit account interest||4||3|
continued...
Page 8
**THE VALLEY CHURCH ANDOVER TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 28 February 2021**
## **3. GRANTS PAYABLE**
|**GRANTS PAYABLE**|**GRANTS PAYABLE**|**GRANTS PAYABLE**||||||||
|---|---|---|---|---|---|---|---|---|---|
|Administrative expenses
Charitable Activities|||28.2.21
£
282
3,979
4,261|||||29.2.20
£
-
5,723
5,723||
|||||||||||
|Charitable organisations/activities||||||||||
|Unrestricted|||Restricted||||2021||2020|
||£||£||||£||£|
|||||||||||
|Tear Fund|165||-||||165||180|
|Provision for Homeless|||881||||881||1,846|
|Agape House|-||2,668||||2,668||3,099|
||------------||------------|||--|----------|----|--------|
||165||3,549||||3,714||5,125|
||------------||------------|||--|----------|----|--------|
|||||||||||
|||||||||||
|||||||||||
|**Individuals**||||||||||
|Unrestricted|||Restricted||||2021||2020|
|||£||£|||£||£|
|||||||||||
|Gifts to visiting speakers||92|||-||92||200|
|Other donations under £1,000||455|||-||455||398|
|||-----------||-----------|||-----------|---|--------|
|||547|||-||547||598|
|||-----------||-----------|||-----------|---|--------|
|**SUPPORT COSTS**||||||||||
||||||29.02.20|||28.02.19||
||||||£|||£||
|Fees payable for the Independent Examination|||||700|||700||
||||||------------|||------------||
## **4. SUPPORT COSTS**
## **5. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 28 February 2021 nor for the year ended 29 February 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 28 February 2021 nor for the year ended 29 February 2020.
## **6. STAFF COSTS**
The average monthly number of employees during the year was as follows:
||28.2.21|29.2.20|
|---|---|---|
|Coffee Shop|4|4|
|Administration|1|1|
||5|5|
No employees received emoluments in excess of £60,000.
continued...
Page 9
**THE VALLEY CHURCH ANDOVER TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 28 February 2021**
## **7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Charitable Activities
Investment income
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Administrative expenses
Independent Examination fees
Charitable Activities
**Total**
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**
**8.**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 March 2020
Additions
At 28 February 2021
**DEPRECIATION**
At 1 March 2020
Charge for year
At 28 February 2021
**NET BOOK VALUE**
At 28 February 2021
At 29 February 2020|Unrestricted
fund
£
26,336
38,043
3
64,382
30,794
30,643
1,200
7,194
69,831
(5,449)
895
(4,554)
300,308
295,754
Freehold
property
£
405,000
-
405,000
116,000
5,800
121,800
283,200
289,000|Restricted
funds
£
3,093
130
-
3,223
-
-
-
4,815
4,815
(1,592)
(895)
(2,487)
3,395
908
Fixtures
and
fittings
£
59,339
1,200
60,539
57,388
564
57,952
2,587
1,951|Total
funds
£
29,429
38,173
3
67,605
30,794
30,643
1,200
12,009
74,646
(7,041)
-
(7,041)
303,703
296,662
Totals
£
464,339
1,200
465,539
173,388
6,364
179,752
285,787
290,951|
|---|---|---|---|
continued...
Page 10
## **THE VALLEY CHURCH ANDOVER TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 28 February 2021**
## **9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade debtors
Other debtors
Tax refunds
Prepayments
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Other creditors
**MOVEMENT IN FUNDS**
At 1.3.20
£
**Unrestricted funds**
General fund
295,754
**Restricted funds**
Agape Fund
-
Homeless
908
908
**TOTAL FUNDS**
296,662
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Agape Fund
Homeless
**TOTAL FUNDS**|Net
movement
in funds
£
22,065
797
1,455
2,252
24,317
Incoming
resources
£
87,728
3,465
2,336
5,801
93,529|28.2.21
29.2.20
£
£
200
1,135
-
816
13
13
411
254
624
2,218
28.2.21
29.2.20
£
£
775
945
1,500
1,208
2,275
2,153
Transfers
between
At
funds
28.2.21
£
£
730
318,549
-
797
(730)
1,633
(730)
2,430
-
320,979
Resources
Movement
expended
in funds
£
£
(65,663)
22,065
(2,668)
797
(881)
1,455
(3,549)
2,252
(69,212)
24,317|29.2.20
£
1,135
816
13
254
2,218
29.2.20
£
945
1,208
2,153
At
28.2.21
£
318,549
797
1,633|29.2.20
£
1,135
816
13
254
2,218
29.2.20
£
945
1,208
2,153
At
28.2.21
£
318,549
797
1,633|
|---|---|---|---|---|
||||2,430||
||||320,979||
|||||2,252|
|||||24,317|
## **10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
## **11. MOVEMENT IN FUNDS**
continued...
Page 11
**THE VALLEY CHURCH ANDOVER TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 28 February 2021**
## **11. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
**Restricted funds**
Agape Fund
Homeless
**TOTAL FUNDS**|At 1.3.19
£
300,308
2,275
1,120
3,395
303,703|Net
movement
in funds
£
(5,449)
(2,310)
718
(1,592)
(7,041)|Transfers
between
funds
£
895
35
(930)
(895)
-|At
29.2.20
£
295,754
-
908|
|---|---|---|---|---|
|||||908|
|||||296,662|
Comparative net movement in funds, included in the above are as follows:
||Incoming|Resources|Movement|
|---|---|---|---|
||resources|expended|in funds|
||£|£|£|
|**Unrestricted funds**||||
|General fund|64,382|(69,831)|(5,449)|
|**Restricted funds**||||
|Agape Fund|659|(2,969)|(2,310)|
|Homeless|2,564|(1,846)|718|
||3,223|(4,815)|(1,592)|
|**TOTAL FUNDS**|67,605|(74,646)|(7,041)|
## **Transfers between funds**
During the year an amount of £730 was transferred from the restricted Homeless Fund to the General Fund, This relates to 8.33% of utility and phones costs incurred in the year which is estimated to relate to the provision of facilities for the Homeless.
## **12. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 28 February 2021.
Page 12