CHARITY REGISTRATION NUMBER: 1063036-SCO39461
BANGOR PENTECOSTAL CHURCH Financial Statements
31 December 2023
ALEXANDER BURSK LIMITED
Accountants& statutory auditor Parkgates Bury New Road Prestwich Manchester Lancashire M25 0JW
BANGOR PENTECOSTAL CHURCH
Financial Statements
Year ended 31 December 2023
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent auditor's report to the members | 5 |
| Statement of financial activities | 9 |
| Statement of financial position | 10 |
| Statement of cash flows | 11 |
| Notes to the financial statements | 12 |
BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report
Year ended 31 December 2023
The trustees present their report and the financial statements of the charity for the year ended 31 December 2023.
Reference and administrative details
Registered charity name BANGOR PENTECOSTAL CHURCH Charity registration number 1063036-SCO39461 Principal office Prince's Road Bangor Gwynedd LL52 2BD
The trustees
Rev. P Edwards Dr. T DaCruz Dr. B Modubu Auditor Alexander Bursk Limited Accountants & statutory auditor Parkgates Bury New Road Prestwich Manchester Lancashire M25 0JW Bankers HSBC 274 High Street Bangor Gwynedd LL57 1RU
Structure, governance and management
The charity is a trust comprising the Bangor Pentecostal Church and the Annie's Orphans charity shops, and is governed according to the Assemblies of God constitution, and registered in England and Wales. Trustees are appointed by the chief executive.
The charity is part of the Assemblies of God in Great Britain, but decisions are made by its own trustees, with the managers of individual shops having some responsibility for the day-to-day running of the shops. Training for trustees is provided as and when necessary.
The trustees have under consideration the major risks to which the charity is exposed, in order to satisfy themselves that systems and procedures are and will be established in order to manage those risks. These risks relate largely to varying levels of income and to conditions in other countries in which the charity operates.
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BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report (continued)
Year ended 31 December 2023
Objectives and activities
The charity's objects are the promotion of education and training and religious activities for people of all ages, and the provision of employment. Individuals are remunerated as appropriate.
It undertakes various religious activities, provides financial support for various charities, supports building projects for schools and churches in Third World countries, and provides employment by running charity shops in the UK.
Although the charity provides employment through the charity shops it runs in various towns and villages across the UK, the support and the activities which the volunteers provide go a long way towards making the shops successful. Financing various projects would not be possible without the volunteers' support.
Donations are made to a number of charities whose objectives and activities meet those of the Bangor Pentecostal Church and specifically those of Annie's Orphans. The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing their aims and objectives and in planning their future activities. The charity is a public benefit entity.
Achievements and performance
During the year, the charity:
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Sustained the running costs (salary of teachers) for schools for brick-kiln slave children in Pakistan. £15,200 was sent to cover these costs.
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Continued to bear responsibility for the orphanages in Andhra Pradesh and Tamil Nadu, India, which house children who continue to be supported until the completion of their college education.
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Continued to sustain 'street boys ', in Kayanza, Burundi. These children are homeless because of the recent civil war in Burundi and the HIV epidemic in Central Africa. £29,432 was sent to cover these costs.
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Continued to run the charity shops, which provide employment and volunteer opportunities in their local areas, which has been vital due to the many closures of businesses and depletion of High Streets nationally.
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Made donations to a number of other charities.
Thus it met its objectives for the year.
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BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report (continued)
Year ended 31 December 2023
Financial review
It is the policy of the charity to retain sufficient funds to meet its immediate needs, and it was able to do this during the year.
The charity is funded by donations received by the church and sales made by the charity shops across the UK, levels of which may in any year vary according to the choices of individuals and the state of the economy. This funding supports the charitable projects undertaken by the charity and the running and upkeep of the shops and the church.
At 31 December 2022, the balance sheet date, the charity held total funds of £22,835 (2022: £16,246) of which £10,092 (2022: £16,246) were restricted.
Plans for future periods
The charity's plans for the future are to continue with its existing work and to reduce its costs, if necessary, by closing unprofitable shops.
Trustees' responsibilities statement
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England, Wales and Scotland requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, Charities and Trustees Investments (Scotland) Act 2005, the Charity Accounts (Scotland) Regulations 2006 (as amended), and the provisions of the Trust Deed. 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.
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BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report (continued)
Year ended 31 December 2023
Statement as to disclosure of information
So far as each trustee is aware, there is no relevant audit information of which the charity's auditors are unaware.
Each trustee has taken all the steps that ought to have been taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
The trustees' annual report was approved on 17 October 2024 and signed on behalf of the board of trustees by:
Rev. P Edwards
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BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL CHURCH
Year ended 31 December 2023
Opinion
We have audited the financial statements of BANGOR PENTECOSTAL CHURCH (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL
CHURCH (continued)
Year ended 31 December 2023
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
the information given in the Trustees' Annual Report is inconsistent in any material respect with the accounts; or
sufficient accounting records have not been kept; or
the accounts are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL
CHURCH (continued)
Year ended 31 December 2023
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; -Reviewing minutes of meetings of those charged with governance; -Assessing the extent of compliance with laws and regulations considered to have a direct material effect on the financial statements or the operations of the charity through enquiry and inspection; -Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; -Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected in the financlal statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL
CHURCH (continued)
Year ended 31 December 2023
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act, and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
B Fine (Senior Statutory Auditor)
For and on behalf of
Alexander Bursk Limited Parkgates Accountants & statutory auditor Bury New Road Prestwich Manchester Lancashire M25 0JW
18 October 2024
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BANGOR PENTECOSTAL CHURCH
Statement of Financial Activities
Year ended 31 December 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 4 | 109,478 | 39,137 | 148,615 | 138,622 |
| Other trading activities | 5 | – | 451,411 | 451,411 | 464,928 |
| Investment income | 6 | – | 3 | 3 | – |
| Other income | 7 | 4,738 | 5,000 | 9,738 | 9,236 |
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| Total income | 114,216 | 495,551 | 609,767 | 612,786 | |
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| Expenditure | |||||
| Expenditure on raising funds: | |||||
| Costs of raising donations and | |||||
| legacies | 8 | 82,987 | 5,452 | 88,439 | 85,042 |
| Expenditure on charitable activities | 9,10 | 2,839 | 511,900 | 514,739 | 555,397 |
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| Total expenditure | 85,826 | 517,352 | 603,178 | 640,439 | |
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| Net income/(expenditure) | 28,390 | (21,801) | 6,589 | (27,653) | |
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| Transfers between funds | (18,298) | 18,298 | – | – | |
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| Net movement in funds | 10,092 | (3,503) | 6,589 | (27,653) | |
| Reconciliation of funds | |||||
| Total funds brought forward | – | 16,246 | 16,246 | 43,899 | |
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| Total funds carried forward | 10,092 | 12,743 | 22,835 | 16,246 | |
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 12 to 23 form part of these financial statements.
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BANGOR PENTECOSTAL CHURCH
Statement of Financial Position
31 December 2023
| 2023 | 2022 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Tangible fixed assets | 16 | 50,510 | 53,589 | |
| Current assets | ||||
| Debtors | 17 | 5,603 | 2,875 | |
| Cash at bank and in hand | 19,973 | 10,531 | ||
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| 25,576 | 13,406 | |||
| Creditors: amounts falling due within one year | 19 | 53,251 | 49,771 | |
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| Net current liabilities | 27,675 | 36,365 | ||
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| Total assets less current liabilities | 22,835 | 17,224 | ||
| Creditors: amounts falling due after more than | ||||
| one year | 20 | – | 978 | |
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| Net assets | 22,835 | 16,246 | ||
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| Funds of the charity | ||||
| Restricted funds | 12,743 | 16,246 | ||
| Unrestricted funds | 10,092 | – | ||
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| Total charity funds | 23 | 22,835════════ |
16,246════════ |
These financial statements were approved by the board of trustees and authorised for issue on 17 October 2024, and are signed on behalf of the board by:
Rev. P Edwards Trustee
The notes on pages 12 to 23 form part of these financial statements.
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BANGOR PENTECOSTAL CHURCH
Statement of Cash Flows
Year ended 31 December 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Cash flows from operating activities | |||
| Net income/(expenditure) | 6,590 | (27,653) | |
| Adjustments for: | |||
| Depreciation of tangible fixed assets | 5,449 | 6,463 | |
| Other interest receivable and similar income | (3) | – | |
| Interest payable and similar charges | 4,376 | 4,134 | |
| Accrued expenses | 4,688 | 2,175 | |
| Changes in: | |||
| Trade and other debtors | (2,729) | 4,906 | |
| Trade and other creditors | 2,451 | 1,894 | |
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| Cash generated from operations | 20,822 | (8,081) | |
| Interest paid | (4,376) | (4,134) | |
| Interest received | 3 | – | |
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| Net cash from/(used in) operating activities | 16,449 | (12,215) | |
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| Cash flows from investing activities | |||
| Purchase of tangible assets | (2,370) | – | |
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| Net cash used in investing activities | (2,370) | – | |
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| Cash flows from financing activities | |||
| Payments of finance lease liabilities | (2,934) | (4,709) | |
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| Net cash used in financing activities | (2,934) | (4,709) | |
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| Net increase/(decrease) in cash and cash equivalents | 11,145 | (16,924) | |
| Cash and cash equivalents at beginning of year | 4,740 | 21,664 | |
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| Cash and cash equivalents at end of year | 18 | 15,885════════ |
4,740════════ |
The notes on pages 12 to 23 form part of these financial statements.
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BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The charity is a public benefit entity and a registered charity in England, Wales and Scotland and is unincorporated. The address of the principal office is Prince's Road, Bangor, Gwynedd, LL57 2BD.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and the Charity Accounts (Scotland) Regulations 2006 (as amended).
3. Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention. The charity is a public benefit entity.
Going concern
The charity maintained positive reserves as at 31 December 2023. The charity makes significant levels of donations for which there are no formal commitments, and which may therefore be reduced in the future if necessary to maintain liquidity. There are therefore no significant concerns over the charity's ability to continue operating.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Fund accounting
The general unrestricted fund appertains to activities carried out by the church.
The restricted funds relates to monies raised by the charity shops, which may only be used for charities supported by the shops and for related administrative costs, and to certain small amounts received by the church for particular projects but not paid over until after the year end.
No transfers are made between funds unless authorised and for specific reasons.
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BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Incoming resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
Income from donations is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Income from donated goods is included at nil value, as their value when received is negligible.
Income from government grants is recognised when the charity becomes entitled to the grants and the appropriate application has been made and processed.
No amounts are included for the contribution of general volunteers.
Shop income is the amount derived from the sale of donated goods and is stated net of zero rated vat.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure, including contributions to defined contribution pension schemes, is classified under headings of the statement of financial activities to which it relates:
Costs are allocated as follows:
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Costs relating to the church, other than the audit fee which is the only item included within governance costs, and donations made by the church which are included within the costs of charitable activities, are included within the costs of raising donations and legacies.
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Costs relating to the shops are all included within the costs of charitable activities.
No costs are apportioned between different categories.
Donations payable
Donations are made to various charities in the Third World, the objectives and activities of which meet those of this charity.
Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
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BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Tangible assets
Fixed assets are stated at cost less accumulated depreciation. The land and buildings are not depreciated as their residual value would be their cost. Depreciation is therefore viewed as not being material. Although the Companies Act, FRS 102 and the SORP would normally require the systematic annual depreciation of all fixed assets. The heating system, which forms part of the buildings but is depreciated at a rate of 25% reducing balance. Other assets are depreciated as detailed below.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings - 25% reducing balance Motor vehicles - 25% reducing balance Equipment - 20% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Finance leases and hire purchase contracts
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the statement of financial activities on a straight line basis.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
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BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Financial instruments (continued)
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
Creditors
Trade and other creditors include outstanding amounts due to suppliers and other parties payable after the year end.
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BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
4. Donations and legacies
| Unrestricted | Restricted | Total Funds | |||
|---|---|---|---|---|---|
| Funds | Funds | 2023 | |||
| £ | £ | £ | |||
| Donations | |||||
| General donations received by the church | 109,478 | – | 109,478 | ||
| Specific donations received by the church | – | 16,331 | 16,331 | ||
| Donations received by Annie's Orphans | – | 22,806 | 22,806 | ||
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| 109,478 | 39,137 | 148,615 | |||
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| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2022 | |||
| £ | £ | £ | |||
| Donations | |||||
| General donations received by the church | 91,490 | – | 91,490 | ||
| Specific donations received by the church | – | 15,160 | 15,160 | ||
| Donations received by Annie's Orphans | – | 31,972 | 31,972 | ||
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| 91,490 | 47,132 | 138,622 | |||
════════ |
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═════════ |
|||
| 5. | Other trading activities | ||||
| Restricted | Total Funds | Restricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Shop income | 451,411 | 451,411 | 464,928 | 464,928 | |
═════════ |
═════════ |
═════════ |
═════════ |
||
| 6. | Investment income | ||||
| Restricted | Total Funds | Restricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Bank interest receivable | 3 | 3 | – | – | |
════ |
════ |
════ |
════ |
||
| 7. | Other income | ||||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2023 | |||
| £ | £ | £ | |||
| Employer's allowance | 4,738 | 5,000 | 9,738 | ||
═══════ |
═══════ |
═══════ |
|||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2022 | |||
| £ | £ | £ | |||
| Employer's allowance | 4,236 | 5,000 | 9,236 | ||
═══════ |
═══════ |
═══════ |
- 16 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
8. Costs of raising donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Costs of raising donations and legacies | 82,987 | 5,452 | 88,439 |
════════ |
═══════ |
════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Costs of raising donations and legacie | 85,042════════ |
–════ |
85,042════════ |
The costs of raising donations and legacies include the costs of running the church, within which are included the pastor's salary.
9. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Operation and administration of shops | – | 408,134 | 408,134 |
| Donations made by Annie's Orphans | – | 76,122 | 76,122 |
| Donations made by the church | 2,839 | 20,393 | 23,233 |
| Support costs | – | 7,251 | 7,249 |
─────── |
───────── |
───────── |
|
| 2,839 | 511,900 | 514,738 | |
═══════ |
═════════ |
═════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Operation and administration of shops | – | 441,914 | 441,914 |
| Donations made by Annie's Orphans | – | 78,205 | 78,205 |
| Donations made by the church | – | 26,394 | 26,394 |
| Support costs | – | 8,884 | 8,884 |
──── |
───────── |
───────── |
|
| – | 555,397 | 555,397 | |
════ |
═════════ |
═════════ |
10. Expenditure on charitable activities by activity type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Total funds | Total fund | ||
| directly Support costs | 2023 | 2022 | ||
| £ | £ | £ | £ | |
| Operation and administration of shops | 408,134 | – | 408,134 | 441,914 |
| Donations made by Annie's Orphans | 76,122 | – | 76,122 | 78,205 |
| Donations made by the church | 23,233 | – | 23,233 | 26,394 |
| Governance costs | – | 7,249 | 7,249 | 8,884 |
───────── |
─────── |
───────── |
───────── |
|
| 507,489 | 7,249 | 514,738 | 555,397 | |
═════════ |
═══════ |
═════════ |
═════════ |
- 17 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
11. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 5,449═══════ |
6,463═══════ |
| 12. | Auditors remuneration | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Fees payable for the audit of the financial statements | 7,250═══════ |
8,883═══════ |
13. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 252,413 | 283,706 |
| Social security costs | 16,517 | 20,744 |
| Employer contributions to pension plans | 581 | 946 |
───────── |
───────── |
|
| 269,511 | 305,396 | |
═════════ |
═════════ |
| The average head count of employees during the year was 19 (2022: 19). The average | The average head count of employees during the year was 19 (2022: 19). The average | number |
|---|---|---|
| of full-time equivalent employees during the year is analysed as follows: | ||
| 2023 | 2022 | |
| No. | No. | |
| Number of management staff | 1 | 1 |
| Number of staff employed by Annie's Orphans | 18 | 18 |
──── |
──── |
|
| 19 | 19 | |
════ |
════ |
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
14. Trustee remuneration and expenses
One trustee, Reverend Pauline Edwards, was paid £45,000 (2022: £45,000) in her capacity as pastor of the church.
No trustees received expenses other than those incurred in the course of carrying out the charity's affairs.
15. Transfers between funds
£3,494 has been transferred from the church heating system fund, which is no longer needed, to the church donations fund, to cover mission costs and donations. £6,012 has been transferred from general funds to the church donations fund to cover current and future expenditure on missions. £12,286 has been transferred from general funds to the Annie's Orphans fund, to cover expenses.
- 18 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
16. Tangible fixed assets
| Land and | Fixtures and | Motor | |||
|---|---|---|---|---|---|
| buildings | fittings | vehicles | Equipment | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 January 2023 | 59,372 | 9,981 | 18,389 | 8,225 | 95,967 |
| Additions | – | 2,370 | – | – | 2,370 |
──────── |
──────── |
──────── |
─────── |
──────── |
|
| At 31 December 2023 | 59,372 | 12,351 | 18,389 | 8,225 | 98,337 |
════════ |
════════ |
════════ |
═══════ |
════════ |
|
| Depreciation | |||||
| At 1 January 2023 | 16,699 | 8,179 | 10,113 | 7,387 | 42,378 |
| Charge for the year | 2,168 | 1,043 | 2,071 | 167 | 5,449 |
──────── |
──────── |
──────── |
─────── |
──────── |
|
| At 31 December 2023 | 18,867 | 9,222 | 12,184 | 7,554 | 47,827 |
════════ |
════════ |
════════ |
═══════ |
════════ |
|
| Carrying amount | |||||
| At 31 December 2023 | 40,505 | 3,129 | 6,205 | 671 | 50,510 |
════════ |
════════ |
════════ |
═══════ |
════════ |
|
| At 31 December 2022 | 42,673 | 1,802 | 8,276 | 838 | 53,589 |
════════ |
════════ |
════════ |
═══════ |
════════ |
The value of the building is considered by the trustees to be £1,350,000.
Finance leases and hire purchase contracts
Included within the carrying value of tangible fixed assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
| Motor | |||
|---|---|---|---|
| vehicles | |||
| £ | |||
| At 31 December 2023 | 4,217 | ||
═══════ |
|||
| At 31 December 2022 | 5,622 | ||
═══════ |
|||
| 17. | Debtors | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Other debtors | 5,603 | 2,875 | |
═══════ |
═══════ |
||
| 18. | Cash and cash equivalents | ||
| Cash and cash equivalents comprise the following: | |||
| 2023 | 2022 | ||
| £ | £ | ||
| Cash at bank and in hand | 19,973 | 10,531 | |
| Bank overdrafts | (4,088) | (5,791) | |
──────── |
──────── |
||
| 15,885 | 4,740 | ||
════════ |
════════ |
- 19 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
19. Creditors: amounts falling due within one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts | 4,088 | 5,791 |
| Trade creditors | 2,133 | 3,007 |
| Accruals and deferred income | 23,602 | 18,914 |
| Social security and other taxes | 16,989 | 523 |
| Obligations under finance leases and hire purchase contracts | 979 | 2,935 |
| Other creditors | 5,460 | 18,601 |
──────── |
──────── |
|
| 53,251 | 49,771 | |
════════ |
════════ |
|
| Hire purchase liabilities are secured on the motor vehicle. | ||
| Creditors: amounts falling due after more than one year | ||
| 2023 | 2022 | |
| £ | £ | |
| Obligations under finance leases and hire purchase contracts | – | 978 |
════ |
════ |
|
| Finance leases and hire purchase contracts | ||
| The total future minimum lease payments under finance leases and | hire purchase | contracts ar |
| as follows: | ||
| 2023 | 2022 | |
| £ | £ | |
| Not later than 1 year | 979 | 2,935 |
| Later than 1 year and not later than 5 years | – | 978 |
──── |
─────── |
|
| 979 | 3,913 | |
════ |
═══════ |
20. Creditors: amounts falling due after more than one year
21. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
22. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £581 (2022: £946).
- 20 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
23. Analysis of charitable funds
Unrestricted funds
| At | At | ||||||
|---|---|---|---|---|---|---|---|
| 1 | January | 20 | 31 | December | |||
| 23 | Income | Expenditure | Transfers | 2023 | |||
| £ | £ | £ | £ | £ | |||
| General funds | – | 114,216 | (85,826) | (18,298) | 10,092 | ||
════ |
═════════ |
════════ |
════════ |
════════ |
|||
| At | At | ||||||
| 1 | January | 20 | 31 | December | |||
| 22 | Income | Expenditure | Transfers | 2022 | |||
| £ | £ | £ | £ | £ | |||
| General funds | 18,824════════ |
95,726════════ |
(85,042)════════ |
(29,508)════════ |
–════ |
Unrestricted funds arise from donations received by the church for no specified purpose.
Restricted funds
| Restricted funds | |||||
|---|---|---|---|---|---|
| At | At | ||||
| 1 January 20 | 31 | December | |||
| 23 | Income | Expenditure | Transfers | 2023 | |
| £ | £ | £ | £ | £ | |
| Annies Orphans | – | 479,220 | (491,506) | 12,286 | – |
| Specific donations | |||||
| received by the church | 12,752 | 16,331 | (25,846) | 9,506 | 12,743 |
| Church heating system | 3,494 | – | – | (3,494) | – |
──────── |
───────── |
───────── |
──────── |
──────── |
|
| 16,246 | 495,551 | (517,352) | 18,298 | 12,743 | |
════════ |
═════════ |
═════════ |
════════ |
════════ |
|
| At | At | ||||
| 1 January 20 | 31 | December | |||
| 22 | Income | Expenditure | Transfers | 2022 | |
| £ | £ | £ | £ | £ | |
| Annies Orphans | 41 | 501,900 | (529,003) | 27,062 | – |
| Specific donations | |||||
| received by the church | 13,437 | 15,160 | (26,394) | 10,549 | 12,752 |
| Church heating system | 11,597 | – | – | (8,103) | 3,494 |
──────── |
───────── |
───────── |
──────── |
──────── |
|
25,075════════ |
517,060═════════ |
(555,397)═════════ |
29,508════════ |
16,246════════ |
Restricted funds relate to funds raised by the Annie's Orphans shops, to donations received by the church for specified purposes, and to amounts raised by the church to fund the purchase of work on the heating system.
- 21 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
24. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Tangible fixed assets | – | 50,510 | 50,510 |
| Current assets | 10,092 | 15,484 | 25,576 |
| Creditors less than 1 year | – | (53,251) | (53,251) |
| Creditors greater than 1 year | – | – | – |
──────── |
──────── |
──────── |
|
| Net assets | 10,092 | 12,743 | 22,835 |
════════ |
════════ |
════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Tangible fixed assets | – | 53,589 | 53,589 |
| Current assets | – | 13,406 | 13,406 |
| Creditors less than 1 year | – | (49,771) | (49,771) |
| Creditors greater than 1 year | – | (978) | (978) |
──── |
──────── |
──────── |
|
| Net assets | – | 16,246 | 16,246 |
════ |
════════ |
════════ |
|
| Analysis of changes in net debt | |||
| At | |||
| At 1 Jan 2023 | Cash flows | 31 Dec 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 10,531 | 9,442 | 19,973 |
| Bank overdrafts | (5,791) | 1,703 | (4,088) |
| Debt due within one year | (2,935) | 1,956 | (979) |
| Debt due after one year | (978) | 978 | – |
──────── |
──────── |
──────── |
|
| 827 | 14,079 | 14,906 | |
════════ |
════════ |
════════ |
25. Analysis of changes in net debt
26. Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
| 2023 | 2022 | |||
|---|---|---|---|---|
| £ | £ | |||
| Not later than | 1 | year | 9,899═══════ |
8,915═══════ |
27. Related parties
During the year, the charity received donations of £42,081 (2022: £33,740) from trustees, none of which were restricted.
- 22 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
28. Annie's orphans' donations and involvement in overseas projects
The charity although having no legal or formal requirement to do so, supports various overseas charitable projects in various ways:
Brick Kiln Schools in Pakistan - consists of 23 Brick Kiln slave schools, which were set up by Brick Pakistan after Rev. Edwards visited Pakistan in 2008. The schools are built from discarded bricks, and Annie's Orphans charity takes on the responsibility for paying the salary of the teachers
Orphanage in India- this project consists of two orphanages which are managed by Pastor Yesupadum, whom Rev. Edwards met in 2000. He was educated at the expense of Annie's Orphans, who currently make a regular agreed monthly donation.
Street Children in Burundi - Annie's Orphans fully funds the street boys. It started whilst Rev. Edwards was there in 2013. It consists of a house with twenty boys in the province of Kayanza and another ten boys at university in Bujumbura. Bishop Jerome Ininahazwe oversees the project. There is currently a regular agreed monthly donation.
Annie's Orphans is less involved with the following charities and just makes donations to them:
African Child Trust, which works in eight countries and assists widows in sending their children to school in Africa.
Oaza (Romania). This was set up by Laura Andres, and in the past Annie's Orphans enabled the project to provide accommodation for street children with the astute guidance of Laura. Annie's Orphans donates to this project, but is not involved in any decision making.
Rehema Home in Kenya, which is run by a missionary couple and works with disabled children
POC (the Philippines) - a British missionary provides accommodation and schools for children whose parents are in prison.
Pakistan (Footsteps Charity) -run by Joseph and Rose Barkat, who support the poor in Pakistan by setting up sewing centres and schools for women, and are also involved in disaster relief.
Adopt a Child - a charity that feeds children in Albania and Guatemala
Project for the poor in Jamaica, to which Annie's Orphans makes donations.
The charity is supporting another charity, that works in Russia, that supports battered women and children. The charity's name is Love Russia, and it receives £100 per month from Annie's Orphans.
- 23 -
CHARITY REGISTRATION NUMBER: 1063036-SCO39461
BANGOR PENTECOSTAL CHURCH Financial Statements
31 December 2023
ALEXANDER BURSK LIMITED
Accountants& statutory auditor Parkgates Bury New Road Prestwich Manchester Lancashire M25 0JW
BANGOR PENTECOSTAL CHURCH
Financial Statements
Year ended 31 December 2023
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent auditor's report to the members | 5 |
| Statement of financial activities | 9 |
| Statement of financial position | 10 |
| Statement of cash flows | 11 |
| Notes to the financial statements | 12 |
BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report
Year ended 31 December 2023
The trustees present their report and the financial statements of the charity for the year ended 31 December 2023.
Reference and administrative details
Registered charity name BANGOR PENTECOSTAL CHURCH Charity registration number 1063036-SCO39461 Principal office Prince's Road Bangor Gwynedd LL52 2BD
The trustees
Rev. P Edwards Dr. T DaCruz Dr. B Modubu Auditor Alexander Bursk Limited Accountants & statutory auditor Parkgates Bury New Road Prestwich Manchester Lancashire M25 0JW Bankers HSBC 274 High Street Bangor Gwynedd LL57 1RU
Structure, governance and management
The charity is a trust comprising the Bangor Pentecostal Church and the Annie's Orphans charity shops, and is governed according to the Assemblies of God constitution, and registered in England and Wales. Trustees are appointed by the chief executive.
The charity is part of the Assemblies of God in Great Britain, but decisions are made by its own trustees, with the managers of individual shops having some responsibility for the day-to-day running of the shops. Training for trustees is provided as and when necessary.
The trustees have under consideration the major risks to which the charity is exposed, in order to satisfy themselves that systems and procedures are and will be established in order to manage those risks. These risks relate largely to varying levels of income and to conditions in other countries in which the charity operates.
- 1 -
BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report (continued)
Year ended 31 December 2023
Objectives and activities
The charity's objects are the promotion of education and training and religious activities for people of all ages, and the provision of employment. Individuals are remunerated as appropriate.
It undertakes various religious activities, provides financial support for various charities, supports building projects for schools and churches in Third World countries, and provides employment by running charity shops in the UK.
Although the charity provides employment through the charity shops it runs in various towns and villages across the UK, the support and the activities which the volunteers provide go a long way towards making the shops successful. Financing various projects would not be possible without the volunteers' support.
Donations are made to a number of charities whose objectives and activities meet those of the Bangor Pentecostal Church and specifically those of Annie's Orphans. The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing their aims and objectives and in planning their future activities. The charity is a public benefit entity.
Achievements and performance
During the year, the charity:
-
Sustained the running costs (salary of teachers) for schools for brick-kiln slave children in Pakistan. £15,200 was sent to cover these costs.
-
Continued to bear responsibility for the orphanages in Andhra Pradesh and Tamil Nadu, India, which house children who continue to be supported until the completion of their college education.
-
Continued to sustain 'street boys ', in Kayanza, Burundi. These children are homeless because of the recent civil war in Burundi and the HIV epidemic in Central Africa. £29,432 was sent to cover these costs.
-
Continued to run the charity shops, which provide employment and volunteer opportunities in their local areas, which has been vital due to the many closures of businesses and depletion of High Streets nationally.
-
Made donations to a number of other charities.
Thus it met its objectives for the year.
- 2 -
BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report (continued)
Year ended 31 December 2023
Financial review
It is the policy of the charity to retain sufficient funds to meet its immediate needs, and it was able to do this during the year.
The charity is funded by donations received by the church and sales made by the charity shops across the UK, levels of which may in any year vary according to the choices of individuals and the state of the economy. This funding supports the charitable projects undertaken by the charity and the running and upkeep of the shops and the church.
At 31 December 2022, the balance sheet date, the charity held total funds of £22,835 (2022: £16,246) of which £10,092 (2022: £16,246) were restricted.
Plans for future periods
The charity's plans for the future are to continue with its existing work and to reduce its costs, if necessary, by closing unprofitable shops.
Trustees' responsibilities statement
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England, Wales and Scotland requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period.
In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the applicable Charities SORP;
-
make judgments and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, Charities and Trustees Investments (Scotland) Act 2005, the Charity Accounts (Scotland) Regulations 2006 (as amended), and the provisions of the Trust Deed. 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.
- 3 -
BANGOR PENTECOSTAL CHURCH
Trustees' Annual Report (continued)
Year ended 31 December 2023
Statement as to disclosure of information
So far as each trustee is aware, there is no relevant audit information of which the charity's auditors are unaware.
Each trustee has taken all the steps that ought to have been taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
The trustees' annual report was approved on 17 October 2024 and signed on behalf of the board of trustees by:
Rev. P Edwards
- 4 -
BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL CHURCH
Year ended 31 December 2023
Opinion
We have audited the financial statements of BANGOR PENTECOSTAL CHURCH (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
-
have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
- 5 -
BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL
CHURCH (continued)
Year ended 31 December 2023
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
the information given in the Trustees' Annual Report is inconsistent in any material respect with the accounts; or
sufficient accounting records have not been kept; or
the accounts are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
- 6 -
BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL
CHURCH (continued)
Year ended 31 December 2023
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; -Reviewing minutes of meetings of those charged with governance; -Assessing the extent of compliance with laws and regulations considered to have a direct material effect on the financial statements or the operations of the charity through enquiry and inspection; -Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; -Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected in the financlal statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- 7 -
BANGOR PENTECOSTAL CHURCH
Independent Auditor's Report to the Members of BANGOR PENTECOSTAL
CHURCH (continued)
Year ended 31 December 2023
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
-
Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act, and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
B Fine (Senior Statutory Auditor)
For and on behalf of
Alexander Bursk Limited Parkgates Accountants & statutory auditor Bury New Road Prestwich Manchester Lancashire M25 0JW
18 October 2024
- 8 -
BANGOR PENTECOSTAL CHURCH
Statement of Financial Activities
Year ended 31 December 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 4 | 109,478 | 39,137 | 148,615 | 138,622 |
| Other trading activities | 5 | – | 451,411 | 451,411 | 464,928 |
| Investment income | 6 | – | 3 | 3 | – |
| Other income | 7 | 4,738 | 5,000 | 9,738 | 9,236 |
───────── |
───────── |
───────── |
───────── |
||
| Total income | 114,216 | 495,551 | 609,767 | 612,786 | |
═════════ |
═════════ |
═════════ |
═════════ |
||
| Expenditure | |||||
| Expenditure on raising funds: | |||||
| Costs of raising donations and | |||||
| legacies | 8 | 82,987 | 5,452 | 88,439 | 85,042 |
| Expenditure on charitable activities | 9,10 | 2,839 | 511,900 | 514,739 | 555,397 |
───────── |
───────── |
───────── |
───────── |
||
| Total expenditure | 85,826 | 517,352 | 603,178 | 640,439 | |
═════════ |
═════════ |
═════════ |
═════════ |
||
───────── |
───────── |
───────── |
───────── |
||
| Net income/(expenditure) | 28,390 | (21,801) | 6,589 | (27,653) | |
═════════ |
═════════ |
═════════ |
═════════ |
||
| Transfers between funds | (18,298) | 18,298 | – | – | |
───────── |
───────── |
───────── |
───────── |
||
| Net movement in funds | 10,092 | (3,503) | 6,589 | (27,653) | |
| Reconciliation of funds | |||||
| Total funds brought forward | – | 16,246 | 16,246 | 43,899 | |
───────── |
───────── |
───────── |
───────── |
||
| Total funds carried forward | 10,092 | 12,743 | 22,835 | 16,246 | |
═════════ |
═════════ |
═════════ |
═════════ |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 12 to 23 form part of these financial statements.
- 9 -
BANGOR PENTECOSTAL CHURCH
Statement of Financial Position
31 December 2023
| 2023 | 2022 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Tangible fixed assets | 16 | 50,510 | 53,589 | |
| Current assets | ||||
| Debtors | 17 | 5,603 | 2,875 | |
| Cash at bank and in hand | 19,973 | 10,531 | ||
──────── |
──────── |
|||
| 25,576 | 13,406 | |||
| Creditors: amounts falling due within one year | 19 | 53,251 | 49,771 | |
──────── |
──────── |
|||
| Net current liabilities | 27,675 | 36,365 | ||
──────── |
──────── |
|||
| Total assets less current liabilities | 22,835 | 17,224 | ||
| Creditors: amounts falling due after more than | ||||
| one year | 20 | – | 978 | |
──────── |
──────── |
|||
| Net assets | 22,835 | 16,246 | ||
════════ |
════════ |
|||
| Funds of the charity | ||||
| Restricted funds | 12,743 | 16,246 | ||
| Unrestricted funds | 10,092 | – | ||
──────── |
──────── |
|||
| Total charity funds | 23 | 22,835════════ |
16,246════════ |
These financial statements were approved by the board of trustees and authorised for issue on 17 October 2024, and are signed on behalf of the board by:
Rev. P Edwards Trustee
The notes on pages 12 to 23 form part of these financial statements.
- 10 -
BANGOR PENTECOSTAL CHURCH
Statement of Cash Flows
Year ended 31 December 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Cash flows from operating activities | |||
| Net income/(expenditure) | 6,590 | (27,653) | |
| Adjustments for: | |||
| Depreciation of tangible fixed assets | 5,449 | 6,463 | |
| Other interest receivable and similar income | (3) | – | |
| Interest payable and similar charges | 4,376 | 4,134 | |
| Accrued expenses | 4,688 | 2,175 | |
| Changes in: | |||
| Trade and other debtors | (2,729) | 4,906 | |
| Trade and other creditors | 2,451 | 1,894 | |
──────── |
──────── |
||
| Cash generated from operations | 20,822 | (8,081) | |
| Interest paid | (4,376) | (4,134) | |
| Interest received | 3 | – | |
──────── |
──────── |
||
| Net cash from/(used in) operating activities | 16,449 | (12,215) | |
════════ |
════════ |
||
| Cash flows from investing activities | |||
| Purchase of tangible assets | (2,370) | – | |
──────── |
──────── |
||
| Net cash used in investing activities | (2,370) | – | |
════════ |
════════ |
||
| Cash flows from financing activities | |||
| Payments of finance lease liabilities | (2,934) | (4,709) | |
──────── |
──────── |
||
| Net cash used in financing activities | (2,934) | (4,709) | |
════════ |
════════ |
||
| Net increase/(decrease) in cash and cash equivalents | 11,145 | (16,924) | |
| Cash and cash equivalents at beginning of year | 4,740 | 21,664 | |
──────── |
──────── |
||
| Cash and cash equivalents at end of year | 18 | 15,885════════ |
4,740════════ |
The notes on pages 12 to 23 form part of these financial statements.
- 11 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The charity is a public benefit entity and a registered charity in England, Wales and Scotland and is unincorporated. The address of the principal office is Prince's Road, Bangor, Gwynedd, LL57 2BD.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and the Charity Accounts (Scotland) Regulations 2006 (as amended).
3. Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention. The charity is a public benefit entity.
Going concern
The charity maintained positive reserves as at 31 December 2023. The charity makes significant levels of donations for which there are no formal commitments, and which may therefore be reduced in the future if necessary to maintain liquidity. There are therefore no significant concerns over the charity's ability to continue operating.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Fund accounting
The general unrestricted fund appertains to activities carried out by the church.
The restricted funds relates to monies raised by the charity shops, which may only be used for charities supported by the shops and for related administrative costs, and to certain small amounts received by the church for particular projects but not paid over until after the year end.
No transfers are made between funds unless authorised and for specific reasons.
- 12 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Incoming resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
Income from donations is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Income from donated goods is included at nil value, as their value when received is negligible.
Income from government grants is recognised when the charity becomes entitled to the grants and the appropriate application has been made and processed.
No amounts are included for the contribution of general volunteers.
Shop income is the amount derived from the sale of donated goods and is stated net of zero rated vat.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure, including contributions to defined contribution pension schemes, is classified under headings of the statement of financial activities to which it relates:
Costs are allocated as follows:
-
Costs relating to the church, other than the audit fee which is the only item included within governance costs, and donations made by the church which are included within the costs of charitable activities, are included within the costs of raising donations and legacies.
-
Costs relating to the shops are all included within the costs of charitable activities.
No costs are apportioned between different categories.
Donations payable
Donations are made to various charities in the Third World, the objectives and activities of which meet those of this charity.
Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
- 13 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Tangible assets
Fixed assets are stated at cost less accumulated depreciation. The land and buildings are not depreciated as their residual value would be their cost. Depreciation is therefore viewed as not being material. Although the Companies Act, FRS 102 and the SORP would normally require the systematic annual depreciation of all fixed assets. The heating system, which forms part of the buildings but is depreciated at a rate of 25% reducing balance. Other assets are depreciated as detailed below.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings - 25% reducing balance Motor vehicles - 25% reducing balance Equipment - 20% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Finance leases and hire purchase contracts
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the statement of financial activities on a straight line basis.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
- 14 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
3. Accounting policies (continued)
Financial instruments (continued)
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
Creditors
Trade and other creditors include outstanding amounts due to suppliers and other parties payable after the year end.
- 15 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
4. Donations and legacies
| Unrestricted | Restricted | Total Funds | |||
|---|---|---|---|---|---|
| Funds | Funds | 2023 | |||
| £ | £ | £ | |||
| Donations | |||||
| General donations received by the church | 109,478 | – | 109,478 | ||
| Specific donations received by the church | – | 16,331 | 16,331 | ||
| Donations received by Annie's Orphans | – | 22,806 | 22,806 | ||
───────── |
──────── |
───────── |
|||
| 109,478 | 39,137 | 148,615 | |||
═════════ |
════════ |
═════════ |
|||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2022 | |||
| £ | £ | £ | |||
| Donations | |||||
| General donations received by the church | 91,490 | – | 91,490 | ||
| Specific donations received by the church | – | 15,160 | 15,160 | ||
| Donations received by Annie's Orphans | – | 31,972 | 31,972 | ||
──────── |
──────── |
───────── |
|||
| 91,490 | 47,132 | 138,622 | |||
════════ |
════════ |
═════════ |
|||
| 5. | Other trading activities | ||||
| Restricted | Total Funds | Restricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Shop income | 451,411 | 451,411 | 464,928 | 464,928 | |
═════════ |
═════════ |
═════════ |
═════════ |
||
| 6. | Investment income | ||||
| Restricted | Total Funds | Restricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Bank interest receivable | 3 | 3 | – | – | |
════ |
════ |
════ |
════ |
||
| 7. | Other income | ||||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2023 | |||
| £ | £ | £ | |||
| Employer's allowance | 4,738 | 5,000 | 9,738 | ||
═══════ |
═══════ |
═══════ |
|||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2022 | |||
| £ | £ | £ | |||
| Employer's allowance | 4,236 | 5,000 | 9,236 | ||
═══════ |
═══════ |
═══════ |
- 16 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
8. Costs of raising donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Costs of raising donations and legacies | 82,987 | 5,452 | 88,439 |
════════ |
═══════ |
════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Costs of raising donations and legacie | 85,042════════ |
–════ |
85,042════════ |
The costs of raising donations and legacies include the costs of running the church, within which are included the pastor's salary.
9. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Operation and administration of shops | – | 408,134 | 408,134 |
| Donations made by Annie's Orphans | – | 76,122 | 76,122 |
| Donations made by the church | 2,839 | 20,393 | 23,233 |
| Support costs | – | 7,251 | 7,249 |
─────── |
───────── |
───────── |
|
| 2,839 | 511,900 | 514,738 | |
═══════ |
═════════ |
═════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Operation and administration of shops | – | 441,914 | 441,914 |
| Donations made by Annie's Orphans | – | 78,205 | 78,205 |
| Donations made by the church | – | 26,394 | 26,394 |
| Support costs | – | 8,884 | 8,884 |
──── |
───────── |
───────── |
|
| – | 555,397 | 555,397 | |
════ |
═════════ |
═════════ |
10. Expenditure on charitable activities by activity type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Total funds | Total fund | ||
| directly Support costs | 2023 | 2022 | ||
| £ | £ | £ | £ | |
| Operation and administration of shops | 408,134 | – | 408,134 | 441,914 |
| Donations made by Annie's Orphans | 76,122 | – | 76,122 | 78,205 |
| Donations made by the church | 23,233 | – | 23,233 | 26,394 |
| Governance costs | – | 7,249 | 7,249 | 8,884 |
───────── |
─────── |
───────── |
───────── |
|
| 507,489 | 7,249 | 514,738 | 555,397 | |
═════════ |
═══════ |
═════════ |
═════════ |
- 17 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
11. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 5,449═══════ |
6,463═══════ |
| 12. | Auditors remuneration | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Fees payable for the audit of the financial statements | 7,250═══════ |
8,883═══════ |
13. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 252,413 | 283,706 |
| Social security costs | 16,517 | 20,744 |
| Employer contributions to pension plans | 581 | 946 |
───────── |
───────── |
|
| 269,511 | 305,396 | |
═════════ |
═════════ |
| The average head count of employees during the year was 19 (2022: 19). The average | The average head count of employees during the year was 19 (2022: 19). The average | number |
|---|---|---|
| of full-time equivalent employees during the year is analysed as follows: | ||
| 2023 | 2022 | |
| No. | No. | |
| Number of management staff | 1 | 1 |
| Number of staff employed by Annie's Orphans | 18 | 18 |
──── |
──── |
|
| 19 | 19 | |
════ |
════ |
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
14. Trustee remuneration and expenses
One trustee, Reverend Pauline Edwards, was paid £45,000 (2022: £45,000) in her capacity as pastor of the church.
No trustees received expenses other than those incurred in the course of carrying out the charity's affairs.
15. Transfers between funds
£3,494 has been transferred from the church heating system fund, which is no longer needed, to the church donations fund, to cover mission costs and donations. £6,012 has been transferred from general funds to the church donations fund to cover current and future expenditure on missions. £12,286 has been transferred from general funds to the Annie's Orphans fund, to cover expenses.
- 18 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
16. Tangible fixed assets
| Land and | Fixtures and | Motor | |||
|---|---|---|---|---|---|
| buildings | fittings | vehicles | Equipment | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 January 2023 | 59,372 | 9,981 | 18,389 | 8,225 | 95,967 |
| Additions | – | 2,370 | – | – | 2,370 |
──────── |
──────── |
──────── |
─────── |
──────── |
|
| At 31 December 2023 | 59,372 | 12,351 | 18,389 | 8,225 | 98,337 |
════════ |
════════ |
════════ |
═══════ |
════════ |
|
| Depreciation | |||||
| At 1 January 2023 | 16,699 | 8,179 | 10,113 | 7,387 | 42,378 |
| Charge for the year | 2,168 | 1,043 | 2,071 | 167 | 5,449 |
──────── |
──────── |
──────── |
─────── |
──────── |
|
| At 31 December 2023 | 18,867 | 9,222 | 12,184 | 7,554 | 47,827 |
════════ |
════════ |
════════ |
═══════ |
════════ |
|
| Carrying amount | |||||
| At 31 December 2023 | 40,505 | 3,129 | 6,205 | 671 | 50,510 |
════════ |
════════ |
════════ |
═══════ |
════════ |
|
| At 31 December 2022 | 42,673 | 1,802 | 8,276 | 838 | 53,589 |
════════ |
════════ |
════════ |
═══════ |
════════ |
The value of the building is considered by the trustees to be £1,350,000.
Finance leases and hire purchase contracts
Included within the carrying value of tangible fixed assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
| Motor | |||
|---|---|---|---|
| vehicles | |||
| £ | |||
| At 31 December 2023 | 4,217 | ||
═══════ |
|||
| At 31 December 2022 | 5,622 | ||
═══════ |
|||
| 17. | Debtors | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Other debtors | 5,603 | 2,875 | |
═══════ |
═══════ |
||
| 18. | Cash and cash equivalents | ||
| Cash and cash equivalents comprise the following: | |||
| 2023 | 2022 | ||
| £ | £ | ||
| Cash at bank and in hand | 19,973 | 10,531 | |
| Bank overdrafts | (4,088) | (5,791) | |
──────── |
──────── |
||
| 15,885 | 4,740 | ||
════════ |
════════ |
- 19 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
19. Creditors: amounts falling due within one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts | 4,088 | 5,791 |
| Trade creditors | 2,133 | 3,007 |
| Accruals and deferred income | 23,602 | 18,914 |
| Social security and other taxes | 16,989 | 523 |
| Obligations under finance leases and hire purchase contracts | 979 | 2,935 |
| Other creditors | 5,460 | 18,601 |
──────── |
──────── |
|
| 53,251 | 49,771 | |
════════ |
════════ |
|
| Hire purchase liabilities are secured on the motor vehicle. | ||
| Creditors: amounts falling due after more than one year | ||
| 2023 | 2022 | |
| £ | £ | |
| Obligations under finance leases and hire purchase contracts | – | 978 |
════ |
════ |
|
| Finance leases and hire purchase contracts | ||
| The total future minimum lease payments under finance leases and | hire purchase | contracts ar |
| as follows: | ||
| 2023 | 2022 | |
| £ | £ | |
| Not later than 1 year | 979 | 2,935 |
| Later than 1 year and not later than 5 years | – | 978 |
──── |
─────── |
|
| 979 | 3,913 | |
════ |
═══════ |
20. Creditors: amounts falling due after more than one year
21. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
22. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £581 (2022: £946).
- 20 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
23. Analysis of charitable funds
Unrestricted funds
| At | At | ||||||
|---|---|---|---|---|---|---|---|
| 1 | January | 20 | 31 | December | |||
| 23 | Income | Expenditure | Transfers | 2023 | |||
| £ | £ | £ | £ | £ | |||
| General funds | – | 114,216 | (85,826) | (18,298) | 10,092 | ||
════ |
═════════ |
════════ |
════════ |
════════ |
|||
| At | At | ||||||
| 1 | January | 20 | 31 | December | |||
| 22 | Income | Expenditure | Transfers | 2022 | |||
| £ | £ | £ | £ | £ | |||
| General funds | 18,824════════ |
95,726════════ |
(85,042)════════ |
(29,508)════════ |
–════ |
Unrestricted funds arise from donations received by the church for no specified purpose.
Restricted funds
| Restricted funds | |||||
|---|---|---|---|---|---|
| At | At | ||||
| 1 January 20 | 31 | December | |||
| 23 | Income | Expenditure | Transfers | 2023 | |
| £ | £ | £ | £ | £ | |
| Annies Orphans | – | 479,220 | (491,506) | 12,286 | – |
| Specific donations | |||||
| received by the church | 12,752 | 16,331 | (25,846) | 9,506 | 12,743 |
| Church heating system | 3,494 | – | – | (3,494) | – |
──────── |
───────── |
───────── |
──────── |
──────── |
|
| 16,246 | 495,551 | (517,352) | 18,298 | 12,743 | |
════════ |
═════════ |
═════════ |
════════ |
════════ |
|
| At | At | ||||
| 1 January 20 | 31 | December | |||
| 22 | Income | Expenditure | Transfers | 2022 | |
| £ | £ | £ | £ | £ | |
| Annies Orphans | 41 | 501,900 | (529,003) | 27,062 | – |
| Specific donations | |||||
| received by the church | 13,437 | 15,160 | (26,394) | 10,549 | 12,752 |
| Church heating system | 11,597 | – | – | (8,103) | 3,494 |
──────── |
───────── |
───────── |
──────── |
──────── |
|
25,075════════ |
517,060═════════ |
(555,397)═════════ |
29,508════════ |
16,246════════ |
Restricted funds relate to funds raised by the Annie's Orphans shops, to donations received by the church for specified purposes, and to amounts raised by the church to fund the purchase of work on the heating system.
- 21 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
24. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Tangible fixed assets | – | 50,510 | 50,510 |
| Current assets | 10,092 | 15,484 | 25,576 |
| Creditors less than 1 year | – | (53,251) | (53,251) |
| Creditors greater than 1 year | – | – | – |
──────── |
──────── |
──────── |
|
| Net assets | 10,092 | 12,743 | 22,835 |
════════ |
════════ |
════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Tangible fixed assets | – | 53,589 | 53,589 |
| Current assets | – | 13,406 | 13,406 |
| Creditors less than 1 year | – | (49,771) | (49,771) |
| Creditors greater than 1 year | – | (978) | (978) |
──── |
──────── |
──────── |
|
| Net assets | – | 16,246 | 16,246 |
════ |
════════ |
════════ |
|
| Analysis of changes in net debt | |||
| At | |||
| At 1 Jan 2023 | Cash flows | 31 Dec 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 10,531 | 9,442 | 19,973 |
| Bank overdrafts | (5,791) | 1,703 | (4,088) |
| Debt due within one year | (2,935) | 1,956 | (979) |
| Debt due after one year | (978) | 978 | – |
──────── |
──────── |
──────── |
|
| 827 | 14,079 | 14,906 | |
════════ |
════════ |
════════ |
25. Analysis of changes in net debt
26. Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
| 2023 | 2022 | |||
|---|---|---|---|---|
| £ | £ | |||
| Not later than | 1 | year | 9,899═══════ |
8,915═══════ |
27. Related parties
During the year, the charity received donations of £42,081 (2022: £33,740) from trustees, none of which were restricted.
- 22 -
BANGOR PENTECOSTAL CHURCH
Notes to the Financial Statements (continued)
Year ended 31 December 2023
28. Annie's orphans' donations and involvement in overseas projects
The charity although having no legal or formal requirement to do so, supports various overseas charitable projects in various ways:
Brick Kiln Schools in Pakistan - consists of 23 Brick Kiln slave schools, which were set up by Brick Pakistan after Rev. Edwards visited Pakistan in 2008. The schools are built from discarded bricks, and Annie's Orphans charity takes on the responsibility for paying the salary of the teachers
Orphanage in India- this project consists of two orphanages which are managed by Pastor Yesupadum, whom Rev. Edwards met in 2000. He was educated at the expense of Annie's Orphans, who currently make a regular agreed monthly donation.
Street Children in Burundi - Annie's Orphans fully funds the street boys. It started whilst Rev. Edwards was there in 2013. It consists of a house with twenty boys in the province of Kayanza and another ten boys at university in Bujumbura. Bishop Jerome Ininahazwe oversees the project. There is currently a regular agreed monthly donation.
Annie's Orphans is less involved with the following charities and just makes donations to them:
African Child Trust, which works in eight countries and assists widows in sending their children to school in Africa.
Oaza (Romania). This was set up by Laura Andres, and in the past Annie's Orphans enabled the project to provide accommodation for street children with the astute guidance of Laura. Annie's Orphans donates to this project, but is not involved in any decision making.
Rehema Home in Kenya, which is run by a missionary couple and works with disabled children
POC (the Philippines) - a British missionary provides accommodation and schools for children whose parents are in prison.
Pakistan (Footsteps Charity) -run by Joseph and Rose Barkat, who support the poor in Pakistan by setting up sewing centres and schools for women, and are also involved in disaster relief.
Adopt a Child - a charity that feeds children in Albania and Guatemala
Project for the poor in Jamaica, to which Annie's Orphans makes donations.
The charity is supporting another charity, that works in Russia, that supports battered women and children. The charity's name is Love Russia, and it receives £100 per month from Annie's Orphans.
- 23 -