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2021-08-31-accounts

REGISTERED COMPANY NUMBER: 3404789 (England and Wales) REGISTERED CHARITY NUMBER: 1065086

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 2021

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 10
Consolidated Statement of Financial Activities 11
Consolidated Balance Sheet 12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 30
Detailed Statement of Financial Activities 31 to 32

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

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 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

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

Kings Church

o To advance the Christian faith by such means as the charity shall determine from time to time;

o To relieve people who are in conditions of need, hardship or distress;

o To educate and assist young people through their leisure time activities so as to develop their physical, mental and spiritual capacity;

o To advance education in family life, in marriage and family relationships; and o To advance Christian religious education and training.

Aims

Our mission is:

o To reach out into society at every level to give hope and compassion where there is none and to build a local Christian Church.

To build local Christian Church with desire for the: o Worship of God o Love of one another

o Communication of Jesus to the world

o Training of the whole Church

Key Objectives for September 2020 to August 2021 o To advance the Christian faith.

o To develop our activities with the full range of age groups in the Church o To develop further links with Churches overseas.

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 2006 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 2020 to 31st August 2021 and "Plans for Future Periods".

Page 1

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

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 amount of reserves for future projects at the 31st August 2021 was £341,806.

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.

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 2021 to August 2022 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 2021

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. Aims, strategies and policies for meeting the charity's responsibilities and objectives are agreed and reviewed regularly.

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 2017), 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 4. 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 D A Gamester (Trust Manager), N S Barnett, A P Stevens, and O W Stevens (Church Leader). The company secretary is D A Gamester.

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 nonfinancial 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)

Page 3

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Registered Charity number 1065086

Registered office

Kings Centre 27 Edison Road Eastbourne East Sussex BN23 6PT

Trustees

Mr N S Barnett (resigned 26/4/2022) Mr A M Berry Mr R J Butler Mr P D Jeffery (Chair) Mr A M Phillips (resigned 25/5/2021) Mrs S M Wootton (Chair) Mr J Phillips (appointed 20/7/2021) Ms J Williams (appointed 25/5/2021)

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

Senior Management Team

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

Page 4

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

REFERENCE AND ADMINISTRATIVE DETAILS 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

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.

Page 5

THE FRONTIERS CHARITABLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Approved by order of the board of trustees on 21 June 2022 and signed on its behalf by:

Mrs S M Wootton - 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') and its subsidiary (‘the group’) for the year ended 31 August 2021 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).

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

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 group’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.

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 this gives rise to a material misstatement in the financial statements themselves. 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 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'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 to cease operations, or have no realistic alternative but to do so.

Page 8

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

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and its activities, and through discussion with the trustees and management, we identified the principal risks and considered the extent to which these would have a material impact on the financial statements. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.

We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and reviewed significant or unusual transactions to identify their underlying supporting rationale.

We inspected the minutes of meetings of those charged with governance, and made direct enquiries of management and the board of trustees concerning the group’s policies and procedures relating to:

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates were indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

We also

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 a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

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.

Page 9

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

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: 22 June 2022

Page 10

THE FRONTIERS CHARITABLE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

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
£
777,987
60,916
276
232
37,389
1,249
878,049
5,420
795,413
5,518
194
806,545
71,504
(8,994)
62,510
279,296
341,806		 Restricted
funds
£
48,639
786
-
-
-
4
49,429
-
101,610
159
2,835
104,604
(55,175)
8,994
(46,181)
1,509,398
1,463,217		 2021
Total
funds
£
826,626
61,702
276
232
37,389
1,253
927,478
5,420
897,023
5,677
3,029
911,149
16,329
-
16,329
1,788,694
1,805,023		 2020
Total
funds
£
939,376
75,977
4,432
36,234
78,040
185
1,140,159
16,367
1,007,350
26,552
17,298
1,073,482
66,667
-
66,667
1,722,017
1,788,694

The notes form part of these financial statements

Page 11

THE FRONTIERS CHARITABLE TRUST (REGISTERED NUMBER: 3404789)

CONSOLIDATED BALANCE SHEET 31 AUGUST 2021

Notes
FIXED ASSETS
Tangible assets
14
CURRENT ASSETS
Stocks
16
Debtors
17
Cash at bank and in hand
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		 2021
£
1,799,386
3,479
86,322
299,782
389,583
(68,567)
321,016
2,120,402
(315,379)
1,805,023
341,806
1,463,217
1,805,023		 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

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 21 June 2022 and were signed on its behalf by:

Mrs S M Wootton - Trustee

The notes form part of these financial statements

Page 12

THE FRONTIERS CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

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
£
777,987
60,916
276
232
25,398
5,436
870,245
795,413
5,518
194
801,125
69,120
(8,994)
60,126
265,633
325,759		 Restricted
funds
£
48,639
786
-
-
-
4
49,429
101,610
159
2,835
104,604
(55,175)
8,994
(46,181)
1,509,398
1,463,217		 2021
Total
funds
£
826,626
61,702
276
232
25,398
5,440
919,674
897,023
5,677
3,029
905,729
13,945
-
13,945
1,775,031
1,788,976		 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

The notes form part of these financial statements

Page 13

THE FRONTIERS CHARITABLE TRUST (REGISTERED NUMBER: 3404789)

BALANCE SHEET 31 AUGUST 2021

Notes
FIXED ASSETS
Tangible assets
14
Investments
15
CURRENT ASSETS
Stocks
16
Debtors
17
Cash at bank and in hand
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		 2021
£
1,799,386
100
1,799,486
1,935
145,700
287,643
435,278
(130,409)
304,869
2,104,355
(315,379)
1,788,976
325,759
1,463,217
1,788,976		 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

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 21 June 2022 and were signed on its behalf by:

Mrs S M Wootton - Trustee

The notes form part of these financial statements

Page 14

THE FRONTIERS CHARITABLE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

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
Cash and cash equivalents at the end of
the reporting period		 2021
£
2,396
2,396
(54,839)
1,253
(53,586)
-
-
-
-
(51,190)
338,833
287,643		 2020
£
179,828
179,828
(117,734)
185
(117,549)
50,000
(26,713)
11,457
34,744
97,023
241,810
338,833

The notes form part of these financial statements

Page 15

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2021 2020
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 13,945 61,414
Adjustments for:
Depreciation charges 95,729 94,022
Interest received (1,253) (185)
Decrease in stocks 1,354 393
(Increase)/decrease in debtors (94,100) 29,523
Decrease in creditors (13,279) (5,339)
Net cash provided by operations 2,396 179,828
ANALYSIS OF CHANGES IN NET DEBT
At 1/9/20 Cash flow At 31/8/21
£ £ £
Net cash
Cash at bank and in hand 338,833 (51,190) 287,643
338,833 (51,190) 287,643
Debt
Debts falling due within 1 year (15,213) (6,253) (21,466)
Debts falling due after 1 year (337,998) 22,619 (315,379)
(353,211) 16,366 (336,845)
Total (14,378) (34,824) (49,202)

2. ANALYSIS OF CHANGES IN NET DEBT

The notes form part of these financial statements

Page 16

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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.

continued...

Page 17

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

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

Freehold property - 2% on cost Fixtures and fittings - 20% on 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		 2021
£
672,216
107,456
46,954
826,626		 2020
£
835,982
38,369
65,025
939,376

continued...

Page 18

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

3. OTHER TRADING ACTIVITIES

4.
INVESTMENT INCOME
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
(		 2021
2021
£
1,253
2021
£
4,830
266
56,606
195
81
232
62,210
2021
£
56,606
£
25,398
25,398
25,398)
37,389
37,389		 2020
2020
£
185
2020
£
9,357
1,370
65,250
3,117
1,315
36,234
116,643
2020
£
65,250
£
50,495
50,495
(50,495)
78,040
78,040

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

6. CHARITABLE ACTIVITIES COSTS

Kings Church
Frontier Community Clubs
Frontier Community Training		 Direct
Costs (see
note 7)
£
41,819
5,677
3,029
50,525		 Grant
funding of
activities
(see note
8)
£
77,085
-
-
77,085		 Support
costs (see
note 9)
£
778,119
-
-
778,119		 Totals
£
897,023
5,677
3,029
905,729

continued...

Page 19

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

7. DIRECT COSTS OF CHARITABLE ACTIVITIES

Activity Groups
Bookstall
Focus Costs
Kidz and Youth Activities
Impact & Leadership Training
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
SUPPORT COSTS
Kings Church		 2021
2020
£
£
41,320
50,148
545
1,499
1,166
13,101
4,465
13,451
3,029
17,298
50,525
95,497
2021
2020
£
£
77,085
51,870
2021
2020
£
£
5,259
637
700
700
17,770
25,572
10,500
6,000
1,599
2,222
26,785
6,034
-
2,500
62,613
43,665
Management
£
778,119

8. GRANTS PAYABLE

9. SUPPORT COSTS

Kings Church

continued...

Page 20

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

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		 2021
Kings
Church
£
518,364
1,761
11,874
27,438
4,646
43,872
15,603
17,242
1,415
129
17,542
-
3,122
8,160
126
11,096
95,729
778,119		 2020
Total
activities
£
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

10. NET INCOME/(EXPENDITURE)

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

Depreciation - owned assets
Auditors' Remuneration		 2021
£
95,729
5,760		 2020
£
94,022
6,636

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

continued...

Page 21

THE FRONTIERS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

11. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

There we no trustees' expenses paid for the year ended 31 August 2021 (2020 - £Nil).

12. STAFF COSTS

Salaries
Employers National Insurance
Pension Contributions
Life Assurance		 2021
£
465,804
29,191
22,700
669
518,364		 2020
£
574,465
40,981
29,060
1,798

645,984

During the year, the total paid to Key Management Personnel was £177,252 (2020: £217,920).

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

Direct charitable
Administrative		 2021
27
12
39		 2020
27
11
38

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

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Kings Church
Frontier Community Clubs
Frontier Community Training
Other trading activities
Investment income
Total
EXPENDITURE ON
Charitable activities
Kings Church
Frontier Community Clubs
Frontier Community Training
Total		 Unrestricted
funds
£
853,664
75,977
4,432
-
50,495
6,068
990,636
890,797
26,552
77
917,426		 Restricted
funds
£
85,712
-
-
36,234
-
32
121,978
116,553
-
17,221
133,774		 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

continued...

Page 22

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
14.
TANGIBLE FIXED ASSETS
COST
At 1 September 2020
Additions
At 31 August 2021
DEPRECIATION
At 1 September 2020
Charge for year
At 31 August 2021
NET BOOK VALUE
At 31 August 2021
At 31 August 2020		 Unrestricted
funds
£
73,210
(28,806)
44,404
221,229
265,633
Freehold
property
£
2,534,180
5,319
2,539,499
829,639
50,654
880,293
1,659,206
1,704,541		 Restricted
funds
£
(11,796)
28,806
17,010
1,492,388
1,509,398
Fixtures
and
fittings
£
627,731
49,520
677,251
491,996
45,075
537,071
140,180
135,735		 Total
funds
£
61,414
-
61,414
1,713,617
1,775,031
Totals
£
3,161,911
54,839
3,216,750
1,321,635
95,729
1,417,364
1,799,386
1,840,276

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 2021 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 23

THE FRONTIERS CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

15. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 September 2020 and 31 August 2021 100
NET BOOK VALUE
At 31 August 2021 100
At 31 August 2020 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 for the year		 2021
£
16,147
2,384		 2020
£
13,763
5,263

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		 2021
£
16,147
37,789
(31,218)
6,571
-
4,187
-
2,384
16,047		 2020
£
13,763
78,040
(72,777)
5,263
-
-
-
5,263
13,663

continued...

Page 24

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

16. STOCKS

2021
2021
£
£
Finished goods
1,935
3,479
17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Charity
Group
2021
2021
£
£
Trade debtors
78,650
23,459
Other debtors
63,896
59,709
VAT
-
-
Prepayments and accrued
income
3,154
3,154
145,700
86,322
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Charity
Group
2021
2021
£
£
Bank loans and overdrafts (see note 20)
15,910
15,910
Other loans (see note 20)
5,556
5,556
Trade creditors
83,534
18,119
Social security and other taxes
9,668
9,668
VAT
1,597
1,597
Other creditors
Accruals and deferred income
8,977
5,167
12,550
5,167
130,409
68,567
19.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021
£
Bank loans (see note 20)
246,397
Other loans (see note 20)
68,982
315,379
20.
LOANS
An analysis of the maturity of loans is given below:
2021
£
Amounts falling due within one year on demand:
Bank loans
15,910
Other loans
5,556
21,466
Charity Group		 2020
£
4,969
Group
2020
£
9,054
15,787
485
3,368
28,694
Group
2020
£
15,213
-
90,776
8,820
-
5,914
3,575
124,298
2020
£
262,998
75,000
337,998
2020
£
15,213
-
15,213
Group

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

continued...

Page 25

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

20. LOANS - continued

Amounts falling between one and two years:
Bank loans - 1-2 years
Other loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Other loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years repayable by instalments
Other loans more than 5 years repayable by instalments
21.
SECURED DEBTS
The following secured debts are included within creditors:
Bank loans		 2021
£
15,910
5,556
21,466
47,736
41,667
89,403		 2020
£
15,200
9,520
24,720
45,600
54,988
100,588
182,751
21,759
204,510
2021
£
262,307		 202,198
10,492

212,690
2020
£
278,211

The mortgage is secured on the property Methodist Church, Steyne Road, Seaford, East Sussex, BN25 1HT.

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Investments
Current assets
Current liabilities
Long term liabilities		 Unrestricted
funds
£
404,916
100
369,197
(130,409)
(315,379)
328,425		 Restricted
funds
£
1,394,470
-
66,081
-
-
1,460,551		 2021
Total
funds
£
1,799,386
100
435,278
(130,409)
(315,379)
1,788,976		 2020
Total
funds
£
1,840,276
100
393,722
(121,069)
(337,998)
1,775,031

continued...

Page 26

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

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 ar
Unrestricted funds
Kings Church fund
Special Events fund
Designated - Strategic Development
Restricted funds
Building Fund
Resourcing & Training fund
Restricted Reserve fund
TOTAL FUNDS		 At 1/9/20
£
251,180
4,528
9,925
265,633
1,416,346
5,034
88,018
1,509,398
1,775,031
e as follows:		 Net
movement
in funds
£
57,896
(1,575)
12,799
69,120
(43,134)
(2,835)
(9,206)
(55,175)
13,945
Incoming
resources
£
854,579
2,867
12,799
870,245
1,799
-
47,630
49,429
919,674		 Transfers
between
funds
£
(1,706)
90
(7,378)
(8,994)
21,258
200
(12,464)
8,994
-
Resources
expended
£
(796,683)
(4,442)
-
(801,125)
(44,933)
(2,835)
(56,836)
(104,604)
(905,729)		 At
31/8/21
£
307,370
3,043
15,346
325,759
1,394,470
2,399
66,348
1,463,217
1,788,976
Movement
in funds
£
57,896
(1,575)
12,799
69,120
(43,134)
(2,835)
(9,206)
(55,175)
13,945

continued...

Page 27

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

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 1/9/19
£
214,011
7,367
(149)
221,229
1,412,077
-
80,311
1,492,388
1,713,617		 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

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
£
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

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.

continued...

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THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

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

There we no other related party transactions for the year ended 31 August 2021.

In the previous year, 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.

continued...

Page 29

THE FRONTIERS CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

25. MEMBERS

At 31 August 2021, there were 10 (2020: 10) members of the company.

Page 30