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2020-08-31-accounts

REGISTERED COMPANY NUMBER: 03404789 (England and Wales) REGISTERED CHARITY NUMBER: 1065086

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FOR

THE FRONTIERS CHARITABLE TRUST

Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

THE FRONTIERS CHARITABLE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 8
Consolidated Statement of Financial Activities 9
Consolidated Balance Sheet 10
Statement of Financial Activities 11
Balance Sheet 12
Consolidated Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 28
Detailed Statement of Financial Activities 29 to 30

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES Objectives and aims

The objects of The Frontiers Charitable Trust (TFCT) are as follows-

Kings Church

Aims

Our mission is:

To build local Christian Church with desire for the:

Key Objectives for September 2019 to August 2020

Significant activities

The Church operated significant activities until the first lockdown that was instigated in March 2020 because of the Coronavirus pandemic, after this we were unable to operate many of our usual activities.

These have been formulated with regard to the Charity Commission guidance on public benefit and the advancement of religion.

Public benefit

The trustees recognise the statutory requirement, in the Charities Act 2011 and the general guidance in "Charities and Public Benefit" issued by The Charities Commission, for the Trust to show that its charitable purposes provide identifiable public benefit. The aims and achievements of TFCT, which the trustees believe give evidence to the public benefit provided in Eastbourne and surrounding area, are set out in this report in the sections "Objectives and Activities", "Achievements and Performance during the period 1st September 2019 to 31st August 2020 and "Plans for Future Periods".

Page 1

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Church operated significant activities until the first lockdown that was instigated in March 2020 because of the Coronavirus pandemic, after this we were unable to operate many of our usual activities. A team of volunteers has operated during the lockdown from March to July serving the community with support for those who were vulnerable. From the start of lockdown we have been streaming meetings on Sunday mornings on a similar basis to the meetings we previously held in person. In addition, a number of church activities including Kids, Youth and Focus have provided activity programmes on-line.

Once there are no restrictions on meeting in person the intention is to return to meetings as before the lockdowns were instigated.

FINANCIAL REVIEW

Reserves policy

The trustees have considered and established a reserves policy based on an assessment of the needs of the charity's activities. These are considered in terms of four distinct areas, future projects, specific activity commitments, provision for future major repairs to the charity property and general free reserves. The property at Edison Road has been owned since 1996 and it is clear to the trustees that the structure will need major refurbishment in the medium term if it is to continue to remain a useful resource. By designating specific funds for such work it will not be necessary to hold as much in general reserve.

The amount of reserves for future projects at the 31st August 2020 was £353,422.

Reserves for specific activity commitments cover the restricted (excluding fixed asset funds) and designated funds where the need is to retain restricted income for use as specified by the donor and amounts set aside to cover the designated commitments. At present the Trustees consider the balance of £107,505 sufficient to cover the specific needs.

The structural repair reserve has a starting balance of £25,000 and it is the trustees intention to increase this by £25,000 each year.

The general free reserves should be sufficient to provide the Trust with flexibility to manage change, cover increased costs and react to increased needs of those beneficiaries who come within the bounds of the charity's objects. The Financial Statements show a balance of £245,917, with a further amount of £13,663 retained profit in KCEL, which together, the Trustees consider shows sufficient reserves although this will continue to be subject to review.

FUTURE PLANS

To continue to reach out to society at every level to give hope and compassion where there is none and to build a local Christian Church. The Key Objectives for September 2020 to August 2021 will remain the same as those in place at the start of this reporting period.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 2

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

TFCT is constituted as a company limited by guarantee and operates in accordance with its Memorandum and Articles of Association. The charity is governed by the Board of Trustees who are appointed for the skills and experience that they may offer in contributing to the governance of the charity.

Trustees must accept the truth of and hold a belief in the Statement of Christian Faith set out in the Appendix to the Memorandum of Association and are normally invited from existing members of Kings Church. Trustees are elected by the existing Board of Trustees, appointed by majority vote and are subject to periodic retirement and reappointment by rotation.

The Board meets at least quarterly and appoints trustees to oversee specific areas of TFCT's operations, including leadership, employment, health and safety, building fabric and use, and finance. Aims, strategies and policies for meeting the charity's responsibilities and objectives are agreed and reviewed regularly.

The trustees have adopted a policy for the induction and training of new trustees, including providing each trustee with the following:

New trustees are made aware of TFCT's professional advisors, accountants and solicitors and any current issues. They are also made aware of the organisation structure of management, employees and departmental responsibilities and are given the opportunity to meet members of the management team to be appraised of matters of current activities and especially in the area of particular interest to each trustee. Newly appointed trustees are subject to checks with the Disclosure and Barring Service (DBS) and are provided with a copy of TFCT's Child Protection Policy and Practice Guidelines (Revised March 2007), with which they are required to comply on work with vulnerable beneficiaries. All trustees and employees are subject to further periodic DBS checks.

The trustees have appointed a Senior Management Team, the members of which are set out on page 5. The senior managers, together with the management teams for the various divisions of the charity, meet regularly and deal with the day-to-day management and running of the activities. Senior managers report to the Trustees on the progress of activities, performance results and plans.

Network Bodies

TFCT continues to be a member of the Evangelical Alliance and Newfrontiers group of Churches. Active membership of these bodies provided a wide forum for the exchange of information, training and support at national and international levels. No external party, including the Evangelical Alliance and Newfrontiers took decisions or had voting rights in the governance of TFCT.

Related Parties and Others in Cooperative Activities

KCEL, operated for the purpose of raising funds for the benefit of TFCT, through the hiring of rooms in the Kings Centre for conferences, meetings, weddings, parties, sports, games, etc. The KCEL directors are G J Marsh (Church Leader) who resigned on 30 April 2020, D A Gamester (Trust Manager), A M Phillips, A P Stevens, and O W Stevens (Church Leader) who was appointed on 18 May 2020. The company secretary is D A Gamester.

Page 3

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The trustees have overall responsibility for determining risk management policy, defining what is required and methods of how risks are identified, assessed, handled, reviewed and reported. The senior management team have responsibility for implementing and maintaining systems consistent with this policy. A system is implemented whereby all managers consider the potential risks to their department, grade them by likelihood of occurrence and financial impact and record the results in the risk register.

The system continues with procedures to mitigate those risks, minimise any potential impact on the charity should any of those risks materialise, report and review outstanding risks and complete closure on past risks.

The trustees and the senior management team regularly review progress against budgeted financial plans and non-financial criteria. Management accounts are prepared every month so that financial risks can be identified early and appropriate action taken. Whilst it is recognised that the procedures do not provide absolute assurance against loss or material misstatements, the trustees are of the opinion that proper systems of risk management and control are in place within TFCT.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

3404789 (England and Wales)

Registered Charity number 1065086

Registered office

Kings Centre 27 Edison Road Eastbourne East Sussex BN23 6PT

Trustees

Mr N S Barnett Mr A M Berry Mr R J Butler Mr P D Jeffery (Chair) Mr A M Phillips Mrs S M Wootton

Company Secretary

Mr D A Gamester

Senior Statutory Auditor John Thacker FCA DChA

Auditors

Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Page 4

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Senior Management Team

Mr G J Marsh Chief Executive and Church Leader (resigned 30 April 2020) M D A Gamester Trust Manager Mr A Thorpe Church Leader Mr J Field Church Leader Mr O Stevens Church Leader

Solicitors

Argles Stoneham Burstows Innovis House 108 High Street Crawley RH10 1AS

Bank

Barclays Bank plc 63 Terminus Road Eastbourne BN21 3PQ CAF Bank Limited PO Box 289 Kings Hill West Malling Kent ME19 4TA Santander Bootle Merseyside L30 4GB

Nationwide Building Society Kings Park Road Moulton Park Northampton NN3 6NW

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Frontiers Charitable Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

Page 5

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Chariot House Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 25 May 2021 and signed on its behalf by:

........................................................................ Mr A M Phillips - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE FRONTIERS CHARITABLE TRUST

Opinion

We have audited the financial statements of The Frontiers Charitable Trust (the 'charitable company') (the ‘parent company’) and its subsidiaries (‘the group’) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE FRONTIERS CHARITABLE TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 group and the parent company'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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Our 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 a Report of the Independent Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Thacker FCA DChA (Senior Statutory Auditor) for and on behalf of Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: 25 May 2021

Page 8

THE FRONTIERS CHARITABLE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Kings Church
Frontier Community Clubs
Frontier Community Training
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Cost of generating funds
Costs of fundraising activities
Charitable activities
6
Kings Church
Frontier Community Clubs
Frontier Community Training
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
23
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds

£
853,664
75,977
4,432
-
78,040
6,068
1,018,181
22,282
890,797
26,552
77
939,708
78,473
(28,806)
49,667
229,629
279,296		 Restricted
funds
£
85,712
-
-
36,234
-
32
121,978
-
116,553
-
17,221
133,774
(11,796)
28,806
17,010
1,492,388
1,509,398		 2020
Total
funds
£
939,376
75,977
4,432
36,234
78,040
6,100
1,140,159
22,282
1,007,350
26,552
17,298
1,073,482
66,667
-
66,667
1,722,017
1,788,694		 2019
Total
funds
£
984,783
35,904
9,167
48,059
108,977
1,159
1,188,049
36,740
1,061,965
35,509
49,828
1,184,042
4,007
-
4,007
1,718,010
1,722,017

The notes form part of these financial statements

Page 9

THE FRONTIERS CHARITABLE TRUST (REGISTERED NUMBER: 3404789)

CONSOLIDATED BALANCE SHEET 31 AUGUST 2020

Notes
FIXED ASSETS
Tangible assets
14
CURRENT ASSETS
Stocks
16
Debtors
17
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
19
NET ASSETS
FUNDS
23
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2020
£
1,840,276
4,969
28,694
377,051
410,714
(124,298)
286,416
2,126,692
(337,998)
1,788,694
279,296
1,509,398
1,788,694		 2019
£
1,816,564
5,902
71,249
266,414
343,565
(134,758)
208,807
2,025,371
(303,354)
1,722,017
229,629
1,492,388
1,722,017

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 25 May 2021 and were signed on its behalf by:

............................................. Mr A M Phillips - Trustee

The notes form part of these financial statements

Page 10

THE FRONTIERS CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Kings Church
Frontier Community Clubs
Frontier Community Training
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
6
Kings Church
Frontier Community Clubs
Frontier Community Training
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
23
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds

£
853,664
75,977
4,432
-
50,495
6,068
990,636
890,797
26,552
77
917,426
73,210
(28,806)
44,404
221,229
265,633		 Restricted
funds
£
85,712
-
-
36,234
-
32
121,978
116,553
-
17,221
133,774
(11,796)
28,806
17,010
1,492,388
1,509,398		 2020
Total
funds
£
939,376
75,977
4,432
36,234
50,495
6,100
1,112,614
1,007,350
26,552
17,298
1,051,200
61,414
-
61,414
1,713,617
1,775,031		 2019
Total
funds
£
984,783
35,904
9,167
48,059
78,830
1,159
1,157,902
1,061,965
35,509
49,828
1,147,302
10,600
-
10,600
1,703,017
1,713,617

The notes form part of these financial statements

Page 11

THE FRONTIERS CHARITABLE TRUST (REGISTERED NUMBER: 3404789)

BALANCE SHEET 31 AUGUST 2020

Notes
FIXED ASSETS
Tangible assets
14
Investments
15
CURRENT ASSETS
Stocks
16
Debtors
17
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
19
NET ASSETS
FUNDS
23
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2020
£
1,840,276
100
1,840,376
3,289
51,600
338,833
393,722
(121,069)
272,653
2,113,029
(337,998)
1,775,031
265,633
1,509,398
1,775,031		 2019
£
1,816,564
100
1,816,664
3,682
81,123
244,911
329,716
(129,409)
200,307
2,016,971
(303,354)
1,713,617
221,229
1,492,388
1,713,617

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 25 May 2021 and were signed on its behalf by:

............................................. Mr A M Phillips - Trustee

The notes form part of these financial statements

Page 12

THE FRONTIERS CHARITABLE TRUST

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Interest paid
Net cash provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the end of
the reporting period
2		 2020
£
179,828
179,828
(117,734)
185
(117,549)
50,000
(26,713)
11,457
34,744
97,023
241,810
338,833		 2019
£
57,179
57,179
(526,726)
1,159
(525,567)
326,000
(13,357)
5,824
318,467
(149,921)
391,731
241,810

The notes form part of these financial statements

Page 13

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING
ACTIVITIES
2020 2019
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 61,414 10,600
Adjustments for:
Depreciation charges 94,022 70,555
Interest received (185) (1,159)
Decrease in stocks 393 5,631
Decrease/(increase) in debtors 29,523 (28,778)
(Decrease)/increase in creditors (5,339) 330
Net cash provided by operations 179,828 57,179
2. ANALYSIS OF CASH AND CASH EQUIVALENTS
2020 2019
£ £
Notice deposits (less than 3 months) 338,833 244,911
Overdrafts included in bank loans and overdrafts falling due within one year - (3,101)
Total cash and cash equivalents 338,833 241,810
3. ANALYSIS OF CHANGES IN NET DEBT
At 1/9/19 Cash flow At 31/8/20
£ £ £
Net cash
Cash at bank 244,911 93,922 338,833
Bank overdraft (3,101)
3,101		 -
241,810 97,023 338,833
Debt
Debts falling due within 1 year (15,113)
(100)		 (15,213)
Debts falling due after 1 year (303,354)
(34,644)		 (337,998)
(318,467)
(34,744)		 (353,211)
Total (76,657)
62,279		 (14,378)

The notes form part of these financial statements

Page 14

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees consider that the Covid19 pandemic will not have a significant impact on the charity's core funding from its members as past experience has shown this has remained fairly constant regardless of financial conditions. Income from trading activities has reduced due to the lockdown conditions and steps have been taken to make cost savings. The trustees regard any impact to be short term rather than affecting the charity's ability to continue as a going concern. There are no material uncertainties affecting the current year's accounts.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Government grants

Government grants are recognised under the performance model. The grant income is recognised upon performance conditions being satisfied (and should it be received in advance of satisfying the performance, recognition of the income is deferred as a liability) and where there are no specific future preformance-related conditions then grants are recognised when proceeds are received or receivable.

Coronavirus Job Retention Scheme (CJRS)

The CJRS grant relates to government support for staff who have been furloughed due to Covid-19. For the period 11 March 2020 to 31 July 2020, the Trust was able to claim 80% of a furloughed employee's wages and salaries up to a maximum of £2,500 per month plus associated employer's costs. From August 2020, the Trust was required to pay any employer's national insurance and pension contributions for furloughed employees. These claims were recognised in the Statement of Financial Activities as part of income from charitable activities.

Bounce Back Loans

The government provided a 100% guarantee on loans to small or medium-sized business up to a maximum of £50,000. There are no fees or interest chargeable on these loans for the first 12 months and interest is capped at 2.5% per annum thereafter. The Trust obtained a loan of £50,000 which is shown as part of long term creditors.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Page 15

continued...

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Freehold property - 2% on cost Fixtures and fittings - 20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pensions

The charity operates a defined contribution pension scheme. Contributions payable for the year are charged in the Statement of Financial Activities as part of the costs of charitable activities.

Value Added Tax

The Trust has registered with a Group VAT arrangement covering both the charity and the subsidiary trading company on a partial exemption method agreed with H M Revenue and Customs and subject to review from time to time. Irrecoverable VAT is included in resources expended in the Statement of Financial Activities.

2. DONATIONS AND LEGACIES

Church offerings and gifts
Gift Aid - tax refunds
Sundry gifts		 2020
£
835,982
38,369
65,025
939,376		 2019
£
748,438
132,414
103,931
984,783

Page 16

continued...

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

3. OTHER TRADING ACTIVITIES

4.
INVESTMENT INCOME
Gift aid from subsidiary
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Event income
Kings Church
Church bookstall
Kings Church
Government grants
Kings Church
Focus
Frontier Community Clubs
Kidz and Youth Activities
Frontier Community Clubs
Impact & Leadership training Frontier Community Training
Grants received, included in the above, are as follows:
Coronavirius Job Retention Scheme

Income from Subsidiary undertaking
TCFT Total
Consolidation Adjustment
Less Income from subsidiary undertaking
Gross Income from subsidiary undertaking
Group consolidation total
The Consolidated Statement of Financial Activities eliminates income from
the subsidiary for services provided by the parent company (£50,495).		 2020
£
5,915
185
6,100
2020
£
9,357
1,370
65,250
3,117
1,315
36,234
116,643
2020
£
65,250
2020
£
50,495
50,495
(50,495)
78,040
78,040		 2019
£
-
1,159
1,159
2019
£
31,070
4,834
-
5,786
3,381
48,059
93,130
2019
£
-
2019
£
78,830
78,830
(78,830)
108,977
108,977

Government grants received represent furlough claims made under the Coronavirus Job Retention Scheme.

continued...

Page 17

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

6. CHARITABLE ACTIVITIES COSTS

Grant
funding of
Direct
activities
Costs (see
(see note
note 7)
8)
£
£
Kings Church
51,647
51,870
Frontier Community Clubs
26,552
-
Frontier Community Training
17,298
-
95,497
51,870
7.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Activity Groups
Bookstall
Focus Costs
Kidz and Youth Activities
Impact & Leadership Training
8.
GRANTS PAYABLE
Kings Church
The total grants paid to institutions during the year was as follows:
Mission Support
Evangelical Alliance
Supporting Churches in Zimbabwe
Newfrontiers
Local charities
Love Eastbourne
Love Seaford
9.
SUPPORT COSTS
Kings Church		 Support
costs (see
note 9)
£
903,833
-
-
903,833
2020
£
50,148
1,499
13,101
13,451
17,298
95,497
2020
£
51,870
2020
£
637
700
25,572
6,000
2,222
6,034
2,500
43,665		 Totals
£
1,007,350
26,552
17,298
1,051,200
2019
£
186,000
9,747
17,997
17,511
49,828
281,083
2019
£
60,978
2019
£
-
700
29,317
6,000
3,418
2,683
-
42,118
Management
£
903,833

continued...

Page 18

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

9. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Management

Wages
Rates and water
Insurance
Light and heat
Telephone
Maintenance and Repairs
Building rent
Cleaning and Household
Books and Equipment
Travel Costs
Office costs
Conferences
Bank charges
External audit fee
Legal and professional fees
Trustee compliance costs
Depreciation of tangible fixed assets		 2020
Kings
Church
£
645,984
1,444
9,794
27,697
4,207
27,100
20,449
26,926
278
818
15,169
2,161
3,611
6,636
7,433
10,104
94,022
903,833		 2019
Total
activities
£
499,048
5,765
10,611
41,682
4,844
62,155
35,525
25,462
181
2,315
18,346
2,769
3,039
4,893
9,014
9,037
70,555
805,241

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020 2019
£ £
Depreciation - owned assets 94,022 70,555
Auditors' Remuneration 6,636 4,560

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

continued...

Page 19

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

11. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

There we no trustees' expenses paid for the year ended 31 August 2020 (2019 - £Nil).

12. STAFF COSTS

Salaries
Employers National Insurance
Pension Contributions
Life Assurance		 2020
£
574,145
40,981
29,060
1,798
645,984		 2019
£
441,345
37,649
18,311
1,743
499,048

During the year, the total paid to Key Management Personnel was £217,920 (2019: £223,334).

The average monthly number of employees during the year was as follows:

Direct charitable
Administrative		 2020
27
11
38		 2019
31
11
42

No employees received emoluments in excess of £60,000.

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
860,665
Charitable activities
Kings Church
35,904
Frontier Community Clubs
9,167
Frontier Community Training
2,541
Other trading activities
78,830
Investment income
1,130
Total
988,237
EXPENDITURE ON
Charitable activities
Kings Church
970,488
Frontier Community Clubs
35,206
Frontier Community Training
1,513
Total
1,007,207
Restricted
funds
£
124,118
-
-
45,518
-
29
169,665
91,477
303
48,315
140,095		 Total
funds
£
984,783
35,904
9,167
48,059
78,830
1,159
1,157,902
1,061,965
35,509
49,828
1,147,302

continued...

Page 20

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
NET INCOME/(EXPENDITURE)
(18,970)
Transfers between funds
27,731
Net movement in funds
8,761
RECONCILIATION OF FUNDS
Total funds brought forward
212,468
TOTAL FUNDS CARRIED FORWARD
221,229
14.
TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 1 September 2019
2,495,308
Additions
38,872
Disposals
-
At 31 August 2020
2,534,180
DEPRECIATION
At 1 September 2019
779,097
Charge for year
50,542
Eliminated on disposal
-
At 31 August 2020
829,639
NET BOOK VALUE
At 31 August 2020
1,704,541
At 31 August 2019
1,716,211		 13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
NET INCOME/(EXPENDITURE)
(18,970)
Transfers between funds
27,731
Net movement in funds
8,761
RECONCILIATION OF FUNDS
Total funds brought forward
212,468
TOTAL FUNDS CARRIED FORWARD
221,229
14.
TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 1 September 2019
2,495,308
Additions
38,872
Disposals
-
At 31 August 2020
2,534,180
DEPRECIATION
At 1 September 2019
779,097
Charge for year
50,542
Eliminated on disposal
-
At 31 August 2020
829,639
NET BOOK VALUE
At 31 August 2020
1,704,541
At 31 August 2019
1,716,211		 - continued
Restricted
funds
£
29,570
(27,731)
1,839
1,490,549
1,492,388
Fixtures
and
fittings
£
556,076
78,862
(7,207)
627,731
455,723
43,480
(7,207)
491,996
135,735
100,353		 Total
funds
£
10,600
-
10,600
1,703,017
1,713,617
Totals
£
3,051,384
117,734
(7,207)
3,161,911
1,234,820
94,022
(7,207)
1,321,635
1,840,276
1,816,564

The Bank Loans and overdraft are secured by way of charge over the charity's freehold property at Kings Centre, 27 Edison Road, Eastbourne. The balance of the loan at 31 August 2020 owed to Barclays Bank plc was £Nil, however the charge still remains in place.

In compliance with the terms under which the £220,000 grant from National Lotteries Charity Board (received during the year 2003-2004) was made, a second charge in favour of National Lotteries Charities Board for the sum of £220,000 was placed over 27 Edison Road, Eastbourne.

The mortgage loan is secured on the property Methodist Church, Steyne Road, Seaford.

continued...

Page 21

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

15. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 September 2019 and 31 August 2020 100
NET BOOK VALUE
At 31 August 2020 100
At 31 August 2019 100

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Kings Centre (Eastbourne) Limited (KCEL)

Registered office:

Nature of business: Trading subsidiary of TFCT

%
Class of share:
holding
Ordinary
100
Aggregate capital and reserves
Profit/(loss) for the year		 2020
£
13,763
5,263		 2019
£
8,500
(6,593)

KCEL is the subsidiary trading company of TFCT and is a private limited company incorporated on 19 February 2004. KCEL is registered in England and Wales, company number 5049241 and limited by shares. TFCT owns 100% of the ordinary shares of KCEL and controls the appointment of directors.

KCEL trades with the purpose of raising funds for the benefit of TFCT, by letting parts of the Kings Centre for conferences, meetings, weddings, parties, sports and games and providing catering and café facilities.

It is the intention to donate the taxable profits to TFCT each year by Gift Aid. KCEL's trading results, as extracted from the financial statements are summarised below:

Shareholder's Funds (including £100 share capital)
Profit and Loss Account
Turnover
Expenditure
Operating profit
Other interest receivable
Gift Aid donations to TFCT
Tax on profit on ordinary activities
Retained profit for the year
Accumulated profit carried forward		 2020
£
8,500
78,040
(72,777)
5,263
-
-
-
(5,263)
13,663		 2019
£
8,500
108,977
(109,655)
(678)
-
(5,915)
-
(6,593)

8,400

continued...

Page 22

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

2020
2020
2020
£
£
£
Finished goods
1,680
3,289
4,969
17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Charity
Group
2020
2020
£
£
Trade debtors
31,960
9,054
Other debtors
15,787
15,787
VAT
485
485
Prepayments and accrued
income
3,368
3,368
51,600
28,694
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Charity
Group
2020
2020
£
£
Bank loans and overdrafts (see note 20)
Trade creditors
15,213
90,776
15,213
90,776
Social security and other taxes
8,820
8,820
VAT
-
-
Other creditors
Accruals and deferred income
2,685
3,575
5,914
3,575
121,069
124,298
19.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2020
£
Bank loans (see note 20)
262,998
Other loans (see note 20)
75,000
337,998
20.
LOANS
An analysis of the maturity of loans is given below:
2020
£
Amounts falling due within one year on demand:
Bank overdrafts
-
Bank loans
15,213
15,213
16.
STOCKS
Subsidiary Charity Group		 2019
£
5,902
Group
2019
£
18,317
29,978
-
22,954
71,249
Group
2019
£
18,214
67,219
7,927
700
38,081
2,617
134,758
2019
£
278,354
25,000
303,354
2019
£
3,101
15,113
18,214
Group

continued...

Page 23

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

20. LOANS - continued
2020 2019
£ £
Amounts falling between one and two years:
Bank loans - 1-2 years 15,200 15,110
Other loans - 1-2 years 9,520 -
24,720 15,110
Amounts falling due between two and five years:
Bank loans - 2-5 years 45,600 45,330
Other loans - 2-5 years 54,988 25,000
100,588 70,330
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years repayable by instalments 202,198 217,914
Other loans more than 5 years repayable by instalments 10,492 -
212,690 217,914
21. SECURED DEBTS
The following secured debts are included within creditors:
2020 2019
£ £
Bank loans 278,211 293,467
The mortgage is secured on the property Methodist Church, Steyne Road, Seaford, East Sussex, BN25 1HT.
22. ANALYSIS OF NET ASSETS BETWEEN FUNDS
2020 2019
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
Fixed assets 423,930 1,416,346 1,840,276 1,816,564
Investments 100 - 100 100
Current assets 300,670 93,052 393,722 329,716
Current liabilities (121,069) - (121,069) (129,409)
Long term liabilities (337,998) - (337,998) (303,354)
265,633 1,509,398 1,775,031 1,713,617

continued...

Page 24

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

23. MOVEMENT IN FUNDS

Unrestricted funds
Kings Church fund
Special Events fund
Designated - Strategic Development
Restricted funds
Building Fund
Resourcing & Training fund
Restricted Reserve fund
TOTAL FUNDS
Net movement in funds, included in the above a		 At 1/9/19
£
214,011
7,367
(149)
221,229
1,412,077
-
80,311
1,492,388
1,713,617
re as follows:		 Net
movement
in funds
£
65,975
(2,839)
10,074
73,210
(50,542)
(1,977)
40,723
(11,796)
61,414		 Transfers
between
funds
£
(28,806)
-
-
(28,806)
54,811
7,011
(33,016)
28,806
-		 At
31/8/20
£
251,180
4,528
9,925
265,633
1,416,346
5,034
88,018
1,509,398
1,775,031
Unrestricted funds
Kings Church fund
Special Events fund
Designated - Strategic Development
Restricted funds
Building Fund
Resourcing & Training fund
Restricted Reserve fund
TOTAL FUNDS		 Incoming
resources
£
971,611
8,951
10,074
990,636
-
37,324
84,654
121,978
1,112,614		 Resources
expended
£
(905,636)
(11,790)
-
(917,426)
(50,542)
(39,301)
(43,931)
(133,774)
(1,051,200)		 Movement
in funds
£
65,975
(2,839)
10,074
73,210
(50,542)
(1,977)
40,723
(11,796)
61,414

Page 25

continued...

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

23. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
Kings Church fund
Special Events fund
Designated - Strategic Development
Restricted funds
Building Fund
Resourcing & Training fund
Restricted Reserve fund
TOTAL FUNDS		 At 1/9/18
£
207,180
5,244
44
212,468
1,319,924
9,015
161,610
1,490,549
1,703,017		 Net
movement
in funds
£
(12,401)
(6,470)
(99)
(18,970)
(45,541)
(15,124)
90,235
29,570
10,600		 Transfers
between
funds
£
19,138
8,593
-
27,731
137,693
6,109
(171,533)
(27,731)
-		 At
31/8/19
£
213,917
7,367
(55)
221,229
1,412,076
-
80,312
1,492,388
1,713,617

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
Kings Church fund
Special Events fund
Designated - Strategic Development
Restricted funds
Building Fund
Resourcing & Training fund
Restricted Reserve fund
TOTAL FUNDS		 Incoming
resources
£
960,100
28,137
-
988,237
(1)
45,518
124,148
169,665
1,157,902		 Resources
expended
£
(972,501)
(34,607)
(99)
(1,007,207)
(45,540)
(60,642)
(33,913)
(140,095)
(1,147,302)		 Movement
in funds
£
(12,401)
(6,470)
(99)
(18,970)
(45,541)
(15,124)
90,235
29,570
10,600

The nature and purpose of each fund are as follows:

Restricted Funds

The restricted funds are to be used for specific purposes and laid down by the donor. Expenditure that meets these criteria is charged to the fund together with the appropriate management and support costs.

a) Building Fund

This relates to monies specifically given or set aside to fund the acquisition of the whole building known as The Kings Centre, 27 Edison Road, Eastbourne and the refurbishment and development to date of the building.

Page 26

continued...

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

23. MOVEMENT IN FUNDS - continued

b) Resourcing and Training Fund

This relates to the Impact Project, which trains adults in church mission and theology and Newfrontiers Leadership One training, which trains adults in church leadership, for a fee.

c) Restricted Reserve Fund

This represents monies set aside as specified for restricted purposes and prior to being assigned for use to other restricted funds.

Unrestricted Funds

The unrestricted funds include donations and other incoming resources receivable or generated for the Objectives of the Charity without further specified purpose and are available as general funds.

a) Kings Church Fund/General Fund

This relates to the activities of Kings Church, Eastbourne, the purpose of which is to advance the Christian faith. The fund includes activates, governance costs, as well as the bulk of support costs that are not directly allocated to activities in other funds.

b) Reserve Fund

This represents monies set aside as free reserves to provide flexibility to manage changes and increased needs and for the various projects of the trust, the precise allocation of which has yet to be decided.

c) Special Events Fund

Various church activity special events take place during the year within Kings Centre, held under the umbrella of the Special Events Fund, with the intention of them also generating funds or at least being self financing. This can include social, educational, sporting and youth events, or various other community activities.

Designated Funds (Unrestricted)

The designated funds are unrestricted funds earmarked by the trustees for particular purposes.

a) Giving Fund

This relates to monies specifically set aside by Kings Church and given away to other charities, Christian organisations and to those in need.

b) Strategic Development Fund

This relates to monies specifically set aside by Kings Church for strategic projects.

24. RELATED PARTY DISCLOSURES

Mrs J Barnett, the wife of Mr N S Barnett (a trustee), was employed by the company during the year and paid a salary including pension contributions of £10,977 (2019: £10,592).

There we no other related party transactions for the year ended 31 August 2020.

continued...

Page 27

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

25. MEMBERS

At 31 August 2020, there were 10 (2019: 10) members of the company.

This page does not form part of the statutory financial statements

Page 28