OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-09-30-accounts

CABIN LANE CHURCH

FINANCIAL STATEMENTS

FOR

30 SEPTEMBER 2020

Company Number 3659182 Charity Number 1073517

FINANSURE LTD

2 Sheppard Street, Brymbo, Wrexham, LL11 5FF

CABIN LANE CHURCH

FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

CONTENTS PAGES
Charity information 1
Trustees’ annual report 2 to 6
Independent examiner’s report 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 to 16

Page 1

CABIN LANE CHURCH

CHARITY INFORMATION

Company number 3659182
Charity number 1073517
Directors Mr A J Thompson
Mrs G Tipton
Mr B J Hainsworth (Appointed 4thMarch 2020)
Mr M J Webber (Appointed 4thMarch 2020)
Mr C G Heath (Resigned 4thMarch 2020)
Treasurer Mr J A Sinclair
Registered office The Whole Life Christian Centre
Cabin Lane
Oswestry
Shropshire
SY11 2LQ
Independent Examiner Mr L HowsonMAAT
Accountants Finansure Limited
2 Sheppard Street
Brymbo
Wrexham
LL11 5FF
Bankers CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ

Page 2

CABIN LANE CHURCH

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2020

The directors/trustees present their Annual Report, along with the examined financial statements, for the year 1[st] October 2019 to 30[th] September 2020.

Objectives of the charity:

These are set out fully in the Memorandum of Association of the company, but in brief are to:

To fulfil these objectives Cabin Lane Church carries out activities, both directly and indirectly through other partner organisations, locally in the county of Shropshire and in the UK or the world as the trustees may from time to time see fit. Details of resources expended on these activities are given in the Statement of Financial Activities. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (effective January 2019) in preparing this report.

Our ability to fulfil these objectives is related to the resources that we have available. These include participants in our activities, finances, equipment and property. Our strategies for fulfilling the objectives are set out in our vision statement.

Vision:

The main point of our vision is to enable people to find fullness of life in Christ, and to do that by ‘building community, living with passion, and making an impact – for Jesus’ as we:

Highlights for 2019-20:

As with so many charities and organisations this has turned out to be no ordinary year in the life of Cabin Lane Church. The church continues to be led by Jan and Steve Worthy through difficult and challenging times.

Church activities went on as usual up to March through Café Life and their supporting groups like Coffee and Chaos, Cameo, Fusion, the Camera club and Joyful Noise choir, as well as the Room Hire clients. Our Christmas events were changed a little and enjoyed by all those who attended.

The COVID-19 pandemic announced in March 2020 effectively closed churches. Government restrictions on how churches can operate, and the vulnerability of a high proportion of the congregation at Cabin Lane was judged to pose too high a risk. This severely restricted the use of the Café Life and room hire facilities income as well as the offering from Sunday services. Pragmatic work by the Finance team has ensured we have managed to keep things going and

Page 3

CABIN LANE CHURCH

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2020

made saving and rescheduling payments where possible, to continue. Additional generous gifts from the membership and support from Government funding from the Job Retention and Furlough schemes has helped. However, the financial position of the church remains challenging and regular finance and Trustee meetings via Zoom have enabled us to monitor the situation. We are grateful for the input of all those who have physically helped us to remain relevant to the community during the lockdown.

While following Government guidelines and new health regulations we were able to open the centre for a short time. We tried to support the community through a Click and Collect and Take away meals which were not wholly successful. While the church has been closed we have taken the opportunity the carry out some maintenance, and inside decoration. Planned work in the garden and our neighbour’s hedge trimming project have had to be delayed.

Confirmation of Matt Webber and Brian Hainsworth as Elders and Trustees was ratified at the AGM Zoom meeting in March 2020, and Chris Heath stepped down.

Membership stands at 53 at the end of the year, slightly down with 3 resignations. We have maintained contact with membership through the small group setup, Pastoral Care, and regular email contact and telephone communication. The Sunday services were streamed online each week through YouTube CLCTV, which has had a good response of 80+ views followed by a Zoom chat time for those who wanted to be involved with an average of 25 people per week. There was also one member baptised during this year.

Baptist Association affiliation was delayed by changes required to the church rules and COVID19 during this reporting period, but was completed in January 2021.

Issues with the car parking in the area have affected some of the activities and meant that we have used the local streets as our overflow and the goodwill of the Junior Schools car park for Sunday services when open. During this period we have approached the owners of the land adjacent to the church and following the approval of the membership made an offer to purchase it with funds secured from a trust that wanted to remain anonymous. This would give the church options to develop further parking facilities, extend the church garden or other strategic options in the future. Some problems have become apparent regarding the existing footpath that didn’t form part of the local shop development. Other plans under a covenant arrangement with the council had not been fulfilled so the path has not been adopted. We have continued to seek ways in resolving these issues before the purchase is completed.

The COVID-19 pandemic continues beyond this period with further lockdowns and restrictions. We look forward to the implantation of the vaccine role out, and society complying with the Government legislation to bring down the high infection rate and levels of mortality while protecting the vulnerable and the effects on the NHS. Cabin Lane Church is committed to doing its part through prayer, support for one another, and the community where we can.

We can report that there have been no other serious incidences that would impact our interest or the safety of the public or the community we serve during this period.

Page 4

CABIN LANE CHURCH

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2020

Structure, governance and management:

Cabin Lane Church is a charitable company limited by guarantee, incorporated on 29[th] October 1998 and registered on 26[th] January 1999. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company, and it is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10 to any deficit.

Appointment of trustees:

The elders of the church are appointed at an Annual General Meeting by election from within the membership of the church and are subject to re-election by the members every three years. Upon election as elders of the church, they also become trustees of the charity and directors of the company. In accordance with charitable and company law, they must be at least 18 years old and they must be eligible (not having been disqualified as a trustee and having declared themselves in writing as eligible). They can also be elected mid-year to fill a vacancy under article 34 of the Articles of Association, in which case they must be re-elected at the next AGM.

In view of the charity’s work with children and vulnerable people, all trustees are required to have a DBS check. They must also comply with the biblical requirements of a church elder: in brief, they must be respectable, honest, self-controlled, gentle and upright.

Public Benefit:

The charity trustees have complied with the duty in section 4 of the 2006 Charities Act to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.

Induction and training of trustees:

Through their membership of the church, newly appointed trustees will already be familiar with its charitable work, and they are provided with suitable material to give a background to the formalities of the company. The trustees are kept up to date by information from the ‘third sector’ press and by information and guidance from the Charity Commission and are provided with regular updates from various ministry leaders.

The trustees are aware that they must declare any conflicts of interest, and that they must avoid undertaking activities that might place the charity’s endowment, funds, grants or reputation at undue risk and use charitable funds and assets reasonably and only in furtherance of the charity’s objects.

Risk management:

The trustees consider every proposed new activity, including consideration of the risks involved. This is followed up with the relevant activity/ministry leader.

The trustees are in the process of improving risk management, including reviewing the potential risks associated with existing activities.

Page 5

CABIN LANE CHURCH

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2020

Financial management:

The trustees, together with the finance committee, are responsible for setting the budget, approving staff salaries for the forthcoming year, controlling expenditure and monitoring income, and approving any capital or unbudgeted expenditure. The trustees review financial results quarterly looking at income and expenditure, and a summary financial report is provided by the treasurer each month to the finance committee. One of the trustees attends all the monthly meetings of the finance committee and reports back regularly to the other trustees on the up-todate financial position.

No trustees received any emoluments for their services.

Charitable donations amounted to £84,285 (2019 - £51,528) including Gift Aid of which £25,000 was a one-off donation towards purchasing land adjacent to the church building. Total income for 2020 was £154,368 (2019 - £159,384) which also included £18,720 grants received from the HMRC JRS grant scheme. Total expenditure for 2020 was £134,658 (2019 - £144,741).

At the year end, the charity held reserves of £216,081 of which £190,859 were unrestricted.

Reserves policy:

The trustees do not allocate any amount to free reserves for the church to hold in its general fund. The trustees set a surplus general budget. It is intended, as funds become available, to build up a reserve fund.

Declarations of responsibility:

Company and charity law require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of Cabin Lane Church and the results for the period. In preparing financial statements the trustees have:

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

The trustees confirm that there are no serious incidents or other matters which should have been brought to the attention of the Charity Commission and have not already been.

The trustees confirm they have all declared themselves to be eligible and to have no conflicts of interest.

The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit when reviewing the charitable objectives and aims of Cabin Lane Church, as well as in planning future activities.

Page 6

CABIN LANE CHURCH

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2020

We as trustees and directors certify that:

This report was approved by the directors on …………………………… 2021 and is signed on their 14th June behalf by:

……………………………… Mr A J Thompson - Trustee

Page 7

CABIN LANE CHURCH

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report on the accounts of the charity for the year ended 30 September 2020, which are set out on pages 8 to 16.

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

  1. which gives me reasonable cause to believe that in any material respect the requirements:

  2. to keep accounting records in accordance with section 386 of the Companies Act 2006; and

  3. • to prepare accounts which accord with the accounting records and comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met; or

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

14th June ……………………………………… Dated: …………………………… 2021 L M Howson MAAT

Finansure Limited, 2 Sheppard Street, Brymbo, Wrexham, LL11 5FF

Page 8

CABIN LANE CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 30 SEPTEMBER 2020

Unrestricted Restricted Totals Totals
Funds Funds 2020 2019
Note £ £ £ £
INCOMING RESOURCES
Donations and grants 2 77,156 25,849 103,005 59,658
Incoming resources from
charitable activities 3 51,357 - 51,357 99,723
Investment income 6 - 6 3
─── ─── ─── ───
TOTAL INCOMING RESOURCES 128,519 25,849 154,368 159,384
─── ─── ─── ───
RESOURCES EXPENDED
Charitable activities 4 133,670 988 134,658 144,741
─── ─── ─── ───
TOTAL RESOURCES EXPENDED 133,670 988 134,658 144,741
─── ─── ─── ───
NET INCOME/(EXPENDITURE)
FOR THE YEAR (5,151) 24,861 19,710 14,643
Transfers between funds (160) 160 - -
OTHER RECOGNISED GAINS/(LOSSES):
Gain/(loss) on revaluation of fixed assets - - - (427,087)
─── ─── ─── ───
Net movement in funds (5,311) 25,021 19,710 (412,444)
Balances brought forward 196,170 201 196,371 608,815
─── ─── ─── ───
Balances carried forward 190,859 25,222 216,081 196,371
─── ─── ─── ───

The charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 10 to 16 form part of these financial statements.

Page 9

CABIN LANE CHURCH

BALANCE SHEET

30 SEPTEMBER 2020

Note 2020 2019
£ £
FIXED ASSETS
Tangible assets 10 387,109 396,277
Investments 11 20,000 20,000
──── ────
407,109 416,277
──── ────
CURRENT ASSETS
Debtors 12 2,110 2,938
Cash at bank and in hand 36,052 13,973
──── ────
38,162 16,911
CREDITORS:amounts falling
due within one year 13 (9,210) (10,065)
──── ────
NET CURRENT ASSETS 28,952 6,846
──── ────
TOTAL ASSETS LESS
CURRENT LIABILITIES 436,061 423,123
CREDITORS:amounts falling
due after more than one year 14 (219,980) (226,752)
──── ────
NET ASSETS 15 216,081 196,371
──── ────
FUNDS
Unrestricted funds 16 190,859 196,170
Restricted funds 16 25,222 201
──── ────
TOTAL FUNDS 216,081 196,371
──── ────

The trustees are satisfied that the charity is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the accounts for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act.

The trustees acknowledge their responsibility for:

These financial statements have been prepared in accordance with the special provisions for companies subject to the small companies’ regime, and with the Financial Reporting Standard 102.

14th June

These financial statements were approved by the trustees on ………………………. 2021, and are signed on their behalf by:

…………………………… Mr A J Thompson - Trustee

The notes on pages 10 to 16 form part of these financial statements.

Page 10

CABIN LANE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

1. ACCOUNTING POLICIES

Accounting convention

The accounts have been prepared under the historical cost convention and in accordance with the Charities Act and Companies Act, the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities (effective January 2019)”, and the Financial Reporting Standard 102 (FRS 102).

Fund accounting

Unrestricted funds are general funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Church and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Church for particular purposes.

The cost of raising and administering such funds are charged against the specific fund. Investment income and gains are allocated to the appropriate fund.

Incoming resources

Grants and donations are recognised when receivable, unless specified as covering a specific period, in which case they are apportioned accordingly. Gift Aid recoverable is credited in the same period as the donation to which it relates. Where donations or grants are received for a specific project or purpose, the income is accounted for separately within a restricted fund.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Costs of charitable activities are those incurred in furthering the objectives of the Church which are laid out on page 2.

Governance costs are those incurred in connection with administration of the Church and compliance with constitutional and statutory requirements.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation except for freehold property which is stated at valuation less depreciation. Assets are capitalised if they have a useful life of more than one year and a cost value greater than £100.

Buildings are included at market valuation and are revalued every 5 years.

Depreciation is provided at the following annual rates in order to write off the value of each asset over its expected useful life:

2% on valuation

20% on written down value

Page 11

CABIN LANE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

2. DONATIONS AND GRANTS RECEIVED

2020 2019
£ £
General donations received 47,544 49,633
Restricted donations received 25,849 1,400
Gift Aid tax reclaimed 10,892 8,625
JRS grants received 18,720 -
─── ───
103,005 59,658
─── ───

3. INCOME FROM CHARITABLE ACTIVITIES

2020 2019
£ £
Café income 30,327 64,594
Room hire 20,690 32,478
Other income 340 2,651
─── ───
51,357 99,723
─── ───

4. COSTS OF ACTIVITIES IN FURTHERANCE OF THE CHARITY’S OBJECTS

Activity or project Activities
undertaken
directly		 Grant
funding of
activities
(note 5)		 Support
costs
(note 6)		 Employee
costs
(note 7)		 Total
2020		 Total
2019
£ £ £ £ £ £
Building running costs - - 27,671 21,975 49,646 45,741
Café operations 11,771 - 4,508 32,762 49,041 64,458
Church and group activities 796 - 2,129 - 2,925 3,612
Ministry fees and expenses 24,608 - - - 24,608 22,677
Missions and giving 356 8,082 - - 8,438 8,253
TOTAL 37,531 8,082 34,308 54,737 134,658 144,741

Page 12

CABIN LANE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

5. ANALYSIS OF GRANTS PAYABLE

2020 2019
£ £
To charities (UK)
- Missions 7,302 7,391
- Other 100 315
To individuals (UK)
- Missions 680 356
- Other - 181
─── ───
8,082 8,243
─── ───

6. ANALYSIS OF SUPPORT COSTS

Building
running
costs		 Café
operations		 Church &
group
activities		 Total
2020		 Total
2019
£ £ £ £ £
Advertising - - - - 84
Bank charges 120 108 12 240 283
Depreciation 10,046 - - 10,046 2,632
Expensed equipment - - 169 169 20
Hospitality - - 671 671 468
Insurance 773 696 77 1,546 1,494
Interest payable 6,735 - - 6,735 7,828
Light & heat 1,738 2,500 - 4,238 7,204
Office expenses 1,235 - - 1,235 1,678
Printing, postage & stationery - - 6 6 91
Repairs & maintenance 3,497 - - 3,497 3,760
Garden maintenance 440 - - 440 704
Subscriptions & licences - - 1,061 1,061 1,103
Telephone 882 794 88 1,764 1,404
Water & rates 999 - - 999 2,184
Independent examiner’s fees 400 360 40 800 825
Legal fees 750 - - 750 -
Other expenses 56 50 5 111 -
TOTAL 27,671 4,508 2,129 34,308 31,762

Support costs are allocated directly per department where appropriate; all other support costs are allocated 50% building, 45% café and 5% church and group activities.

Page 13

CABIN LANE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

7. EMPLOYMENT COSTS

2020 2019
£ £
Café staff gross wages 32,762 37,022
Building staff gross wages 20,773 22,498
Employer’s NI contributions 702 -
Employer’s pension contributions 500 450
─── ───
54,737 59,970
─── ───

No employee received emoluments, as defined for taxation purposes, amounting to over £60,000 in the tax year.

The total number of employees during the year was 17 (2019 – 20). The average number of employees, calculated on a full-time equivalent basis, was three (2019 – three).

8. TRANSACTIONS WITH TRUSTEES

No trustees received remuneration during the year, and no expenses were reimbursed or waived to the trustees.

The total aggregate donations made by the trustees to the charity during the year was £6,420 (2019 - £3,070).

9. MEMBERS’ LIABILITY

The charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.

Page 14

CABIN LANE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

10. FIXED ASSETS

Cost or Valuation
At 1 October 2019
Additions
Disposals
Revaluations
At 30 September 2020
Depreciation
At 1 October 2019
Charge for year
Disposals
Revaluations
At 30 September 2020
Net book value
At 30 September 2020
At 30 September 2019		 Land and
buildings
£
385,000
-
-
-
385,000
-
7,700
-
-
7,700
377,300
385,000		 Equipment
£
80,976
878
-
-
81,854
69,699
2,346
-
-
72,045
9,809
11,277		 Total
£
465,976
878
-
-
466,854
69,699
10,046
-
-
79,745
387,109
396,277

The Whole Life Centre building was revalued on 17[th] October 2019 by Morris, Marshall & Pool at a market value of £385,000. Although the trustees feel the building is worth more than this, and its re-build cost would be substantially higher, they have adopted the market value in the accounts which would better reflect its saleable value. The building will be revalued every 5 years.

11. FIXED ASSET INVESTMENTS

£20,000 is invested in a residential property.

12. DEBTORS

2020 2019
£ £
Income tax recoverable 748 753
Prepayments 730 649
Other debtors 632 1,536
─── ───
2,110 2,938
─── ───

Page 15

CABIN LANE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

13. CREDITORS: amounts falling due within one year

2020 2019
£ £
Accruals 800 1,317
Bank loan < 1 year 8,500 8,500
Other creditors (90) 248
─── ───
9,210 10,065
─── ───

14. CREDITORS: Amounts falling due after more than one year

2020 2019
£ £
Bank loan
- 1-2 years 8,500 8,500
- 2-5 years 25,500 25,500
- more than 5 years 185,980 192,752
─── ───
219,980 226,752
─── ───

The bank loan is secured by a mortgage debenture over the freehold property. The property is included in fixed assets on note 10 and has net book value of £377,300. The mortgage represents 61% of the market value of the property.

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Funds at 30 September 2020
represented by:
Tangible fixed assets
Investment assets
Current assets
Current liabilities
Long-term liabilities		 Restricted
funds
£

-
-
25,222
-
-
25,222		 Unrestricted
funds
£
387,109
20,000
12,940
(9,210)
(219,980)
190,859		 Total
£
387,109
20,000
38,162
(9,210)
(219,980)
216,081

Page 16

CABIN LANE CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2020

16. STATEMENT OF FUNDS

At 1 October At 30 September
2019 Income Expenditure Transfers 2020
£ £ £ £ £
Unrestricted funds:
General reserve 196,170 128,519 (133,670) (160) 190,859
──── ──── ──── ──── ────
Restricted funds:
Land fund - 25,000 - - 25,000
Community garden fund - 284 (444) 160 -
Missions funds 125 565 (544) - 146
Special offerings 76 - - - 76
──── ──── ──── ──── ────
Total restricted funds 201 25,849 (988) 160 25,222
──── ──── ──── ──── ────
Total funds 196,371 154,368 (134,658) - 216,081
──── ──── ──── ──── ────

The land fund represents a one-off donation received towards purchasing land adjacent to the Whole Life Centre.

The community garden fund represents donations given towards improving and maintaining the gardens in the vicinity of the building.

The missions fund represents donations given to further missions’ activities and to support missionaries.

Special offerings funds are donations given towards specific causes or beneficiaries.