The Chaplaincy, Manchester Airport
(a company limited by guarantee)
Annual Report and Financial Statements For the year ended 31 March 2021
Registered Company Number: 03664008 Registered Charity Number: 1074781
The Chaplaincy, Manchester Airport
Table of contents
Trustees and advisers for the year ended 31 March 2021 ..................................................................................... 1 Trustees’ report for the year ended 31 March 2021 .............................................................................................. 2 Statement of Trustees' responsibilities in respect of the trustees’ report and the financial statements ............... 10 Independent auditor’s report to the members of The Chaplaincy, Manchester Airport...................................... 11 Statement of financial activities………………………………………………………………………………...14 Balance sheet……………………………………………………………………………………………………15 Notes to the financial statements………………………………………………………………………………..16
The Chaplaincy, Manchester Airport
Trustees and advisers for the year ended 31 March 2021
Trustees
R. Taylor O. C. Clayton (resigned 21 May 2021) M. J. Gannon S. Reynolds S. Thompson Rt Rev E. K. Akyea-Mensah Rt Rev M Ashcroft K. Foster D.W. Taylor Supt G. Openshaw P. A. Williams (resigned 1 September 2020)
Secretary E. Davenport (resigned 4 August 2020) Z. Hopkins (appointed 4 August 2020)
Registered Office
Olympic House Manchester Airport Manchester M90 1QX
Banker
HSBC Bank plc North West Corporate Banking Centre 2[nd ] Floor 4 Hardman Square Spinningfields Manchester M3 3EB
Auditor
KPMG LLP Chartered Accountants Registered Auditor St Peter’s Square Manchester M2 3AE
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021
The Trustees of The Chaplaincy, Manchester Airport (The Chaplaincy) present their annual report and the audited financial statements for the year ended 31 March 2021.
In accordance with Section 414B of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, the Company is exempt from preparing a Strategic Report.
Reference and Administrative Details
The charity registration number is 1074781 and the company registration number is 03664008. The principal office address is the same as the registered office address. R Taylor (MAG Operations Director) leads The Chaplaincy’s activities as Chair of the Board. P. A. Williams (MAG Chief Customer Officer) resigned the post on 1 September 2020.
Objectives and Activities for the public benefit
The principal activity of The Chaplaincy is to serve all who work at or pass through Manchester Airport. Since 2009, the Mission Statement of The Chaplaincy Manchester Airport has been: To be “A living expression of faith through the provision of pastoral and humanitarian care for all people irrespective of race, gender, sexuality, physical and mental ability, within and beyond the airport community”, amended in 2020, to incorporate all nine protected characteristics from the Equality Act 2010: ‘…irrespective of age, ability, gender, race, religion or belief, sex, sexual orientation, relationship or parental status.’ This mission has been summarised by The Chaplaincy in the three words: “help, support, guide”.
The Chaplaincy’s origins were ecumenical, but this has moved to a genuine multi faith team and The Chaplaincy also serves those with no religious faith. The Board membership reflects the continuing involvement of airport businesses and local churches and faith communities.
A specific long-term aim of The Chaplaincy is the development of the Airport Care Team. This team is a group of volunteers who work at the airport who are trained and managed by The Chaplaincy to provide pastoral and humanitarian care to all those passing through the airport.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities for the year.
Constitution
The Memorandum and Articles of Association set out the constitution, objectives and regulations of The Chaplaincy.
Going concern and basis of preparation
The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons.
At 31 March 2021 the Company had cash of £63,220 (2020: £27,584) and net assets of £58,416 (2020: £27,513). The Trustees have prepared a going concern assessment which considers the period from the date of approval of these financial statements to the end of its March 2023 financial year. These forecasts indicate that the Company will have sufficient funds, to continue to operate and to meet its liabilities as they fall due throughout that period.
The Company is dependent on donations from Manchester Airports Holdings Limited in order to operate, with the majority of its income being derived from this source. As such the Trustees recognise that their assessment is dependent upon Manchester Airports Holdings Limited continuing to provide donations at levels consistent with prior years. Manchester Airports Holdings Limited has confirmed its intention to provide these donations, which in turn would permit the Company to continue to operate as going concern.
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021 (continued)
Going concern and basis of preparation (continued)
However, the Directors of Manchester Airports Holdings Limited have concluded that a material uncertainty exists over that group’s ability to continue as a going concern, as detailed in the basis of preparation on page 58 of the Manchester Airports Holdings Limited annual report for the year to March 2021, which is publicly available on the company website or Companies House. Should Manchester Airport Holdings Limited cease to operate as a going concern this would in turn prevent it from providing this company with the donations that it needs to continue to operate.
Based upon their enquiries, the Trustees believe that it is reasonable to continue to adopt the going concern basis in preparing the annual report and financial statements. However, these circumstances represent a material uncertainty that may cast significant doubt on the Chaplaincy’s ability to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
Achievement and performance
The Chaplaincy continues to provide day to day pastoral and humanitarian care to Manchester Airport and allied on-site companies’, which (in pre-COVID-19 times) compromised 25,000 employees, 28.8 million passengers (annually) and other members of the public who pass through the Airport, whatever the reason for their presence, under our stated mission to “help, support, guide”. From March 2020, the COVID-19 pandemic has led to a significant decline in passenger numbers and staff members at Manchester Airport. However, the Chaplaincy has maintained a high standard of response throughout the period despite the many obvious challenges the aviation industry, Manchester Airport and the Chaplaincy have faced.
The Chaplaincy Team (currently 1 full time chaplain, 4 part time paid members and 7 volunteers) undertakes to provide this service during (and at least once a week, outside) regular business hours (07.30-16.00). In addition, the chaplaincy team offers a 24-hour, 365 day/year out of hours on-call service. A number of
The size of the Chaplaincy team has reduced slightly during the past year, and we have said goodbye to two volunteers and one of our two part-time Muslim chaplains. The full-time equivalent of the chaplaincy team has reduced from approximately 4.5 to 4.2 posts. The chaplaincy recruited three volunteer part-time chaplains early in 2020, although the pandemic lockdowns have made their induction challenging, with the period of August – October 2020 being the focus of chaplaincy in-person attendance at the airport. However, there is no shortage of expressions of interest in joining the team; enquiries have been received from eleven potentially suitably qualified candidates wanting to apply as volunteers. Unfortunately, these enquiries have been put on hold until the New Year. The Chaplaincy Board has also put in place measures to ensure that the chaplaincy will continue to meet the needs of those we serve even more effectively in the future. As the airport we serve begins to grow in staff and passenger numbers through the second half of 2021 and through 2022, the Chaplaincy team’s composition, strength and diversity will continue to develop.
That diversity is even broader when reflected in the membership of the Airport Care Team, which has also continued to grow over the past year. The Airport Care Team consists of airport who have volunteered and undergo regular training to assist the Chaplaincy in response to humanitarian assistance cases and, when required, in full emergency situations. Sadly, we have lost ten members of the Airport Care Team through redundancy across the airport community, but we have also had a number of new applications to join the team in the same period.
The Airport Care Team has nevertheless proved particularly helpful in supporting the Chaplaincy Team when responding to Refugee and Family Reunion referrals from the Red Cross and International Organisation for Migration. Dealing with these issues takes considerable time and skill, and on numerous occasions The Chaplaincy and Airport Care Teams have together proved their worth in small and large-scale responses to human need.
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021 (continued)
Achievement and performance (continued)
The Chaplaincy team provides a diverse service to people of all faiths and none and seeks to maintain and develop its close partnership with colleagues in local and national government, UK consular staff around the world, Greater Manchester Police, UK Border Force, Manchester Airport Customer Services, Community Relations, MAG HR, Occupational Health, Third Sector partners, and other community groups; schools, churches, faith communities, societies and charities within the Airport’s catchment area.
The Chaplaincy continues to establish, maintain and develop contacts with staff and to maximise visibility wherever possible. The Chaplaincy, working with the Airport Care Team, has continued to offer support and pastoral care for individual passengers and staff on a number of occasions and also responds to a wide range of pastoral and emergency situations, including passenger fatalities on flights into Manchester Airport, as well as repatriation of UK nationals abroad following acts of terrorism, bereavement, serious injury, health crisis or detention abroad. The year 2020-2021 has seen an increase in chaplaincy team members taking funeral services for staff and staff family members, and associated bereavement pastoral care. The chaplaincy has also found new opportunities to support the airport’s focus on wellbeing and good mental health – especially in these challenging times.
By working whenever possible in partnership with other agencies, The Chaplaincy provides a service to those directly affected as well as to friends, relatives and staff members involved in a particular situation that is highly regarded and appreciated by clients as well as colleagues. Manchester Airport’s Employee Assistance Programme have assured The Chaplaincy and Airport Care Teams that, in addition to peer-support, specialist emotional and psychological support will be available on request, and in specific emergencies, as a matter of course, for those deployed to assist others.
We have continued to engage in dialogue with Manchester City Council, the Greater Manchester Combined Authority, the Foreign and Commonwealth Office and Manchester Airport Management, with a view to the provision of specialist social work personnel who might work with The Chaplaincy and, with a Manchester Airport security pass as part of an integrated team, supporting Police, Border Force and other partners across and beyond the airport site, to achieve the best outcomes for our clients as rapidly and efficiently as possible.
Chaplaincy meetings were held weekly online via Zoom and Microsoft Teams for much of the year and especially during the periods of lockdown in April-June 2020 and November-March 2021. These meetings were primarily pastoral in nature, focussing on airport staff in crisis and those members of the chaplaincy team in isolation or shielding at home.
The Chaplaincy has continued its work supporting British Citizens returning to the UK throughout the pandemic and lockdown periods, working closely with the Foreign and Commonwealth Office Social Work and Mental Health teams as well as the joint Home Office/ Foreign and Commonwealth Office Forced Marriage Team, the Ministry of Defence, Home Office and Border Force. The Chaplaincy’s agreement with the Border Force Immigration team to provide responsible adult supervision when required has also remained in place, though with passenger traffic significantly reduced, the number of referrals also decreased. Regular visits to the Manchester Residential Short Term Immigration Holding Facility were also suspended, though have begun to return in 2021. We have continued to work alongside Third Sector and charitable NGOs to assist passengers of different faiths, cultures, physical and mental abilities entering and leaving the country, often in difficult and challenging circumstances.
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021 (continued)
Achievement and performance (continued)
Our five multi-faith prayer rooms across three airport terminals are not lockable, so have remained open throughout 2020-2021, though all books and artefacts have been removed for public health reasons, and the surfaces have been deep cleaned and regularly sanitised just as the rest of the airport’s public spaces. We have removed furniture and placed signage to communicate the maximum capacity of rooms and communicated consistently that the prayer rooms are not to be used for group gatherings of any kind. Test and Trace cards (and subsequently QR code posters) and supplies of anti-viral hand-gel have also kept airport staff and travellers safe. We are pleased that, having worked closely with teams delivering the airport’s £1 billion transformation programme, we have helped to deliver a new airside prayer room in the brand new Terminal 2, with a very limited time-frame and budget. This new facility will greatly enhance the provision for staff and travelling passengers wanting to pray or find a peaceful and attractive corner of the terminal and will help to ensure that Manchester Airport is able to meet the diverse needs of users as the passenger facilities develop over the next two-three years.
We have received positive feedback from those assisted; passengers and airport colleagues, with many of those in particularly vulnerable situations being inclined simply to keep in touch as their situations have improved (gradually but very significantly. Fewer referrals, but for very much deeper and longer pastoral relationships have strengthened relationships with airport staff colleagues, those with whom we work from around the world, and their clients. Despite the significant isolation of lockdown, there is still plenty of evidence of how the team’s work at Manchester Airport continues to be viewed very positively and reflects the achievement of the charity’s objectives for the year to March 2021.
The Chaplaincy’s general performance during 2020/2021 was significantly affected by the Covid-19 pandemic, the UK Government’s restrictions on travel and other aspects of day-to-day life, as well as the drop in passenger numbers passing through Manchester Airport. Although members of the team were furloughed at the start of the pandemic, the Chaplain remained in post to ensure that the Chaplaincy continues to fulfil its purpose during these difficult times. From August, both paid and volunteer staff members have returned to work. A high standard of response has been maintained through the period despite the obvious challenges to the aviation industry. The ability of the Chaplaincy to operate in future is dependent on the ongoing operation of Manchester Airport and the willingness of that company to provide donations to the Chaplaincy, as detailed above in the Going Concern section for the Trustees Report.
Members
The Chaplaincy is a company limited by guarantee. The members of The Chaplaincy as at 31 March 2021 are set out below:
WDFG UK Limited British Airways plc Manchester Airport plc The Nuance Group (UK) Limited SSP Air Limited
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021 (continued)
Trustees
The Chaplaincy has a board of directors who are also Trustees. There are no Trustees who are not directors. Trustees are appointed by the members pursuant to Articles 40 to 43 of the Articles of Association. The Trustees, who served during the year and up to the date of signing the financial statements, are as follows:
R. Taylor O. C. Clayton (resigned 21 May 2021) M. J. Gannon S. Reynolds S. Thompson Rt Rev E. K. Akyea-Mensah Rt Rev M Ashcroft K. Foster D.W. Taylor Supt G. Openshaw P. A. Williams (resigned 1 September 2020)
Structure, governance and management
The Trustees usually meet twice a year, with occasional extraordinary meetings as required. The Executive Committee manages business raised between such meetings, meeting a minimum of two further occasions during the year and comprising a smaller number of Trustees plus the Company Secretary, Treasurer and the Coordinating Chaplain. The Executive Committee may also play a role in the recruitment process, the monitoring of terms and conditions of service, and appraisals of chaplaincy team staff.
The training of Trustees is carried out on an informal basis on appointment. Further specialist training of Trustees is carried out periodically, when requirements are identified.
Financial review
The statement of financial activities is as set out on page 12. A surplus was made of £30,903 in 2021 (2020: £11,165 deficit). Donations received from existing donors increased slightly from the prior year, in line with our expectations. As expected, costs have been kept under control and reduced compared to the previous year. Total resources expended were consistent with the Board’s expectations.
Due to the above, the cash balance for The Chaplaincy at 31 March 2021 was higher than at 31 March 2020. The Chaplaincy’s cash continued to be held in accounts with HSBC Bank plc.
The Chaplaincy’s constitution does not permit the payment of dividends, and the surplus for the period of £30,903 has been transferred to reserves (2020: deficit of £11,165). The policy for the management of the level of reserves held is set out below.
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021 (continued)
Reserves policy
As stated above the impact of the Covid-19 pandemic from March 2020 onwards has had a significant impact upon the wider economy and the airline sector in particular.
The Chaplaincy maintains a general unrestricted fund, which represents funds that are expendable at the discretion of the Trustees in furtherance of the Objects of The Chaplaincy.
Such funds may be held in order to finance both working capital and capital investment. There are no restricted funds allocated for a specific purpose. There are no designated funds or amounts put aside at the discretion of the Trustees to be made available only for a specified purpose.
The free reserves at 31 March 2021 are £58,416 (2020: £27,513). The reserves have been maintained at a similar level to 2020.
The Chaplaincy has a reserves policy that is felt to be prudent by the Board. Reserves of a minimum of six months’ costs are held to mitigate, to an extent, the risk of a downturn in the level of donations.
This policy was set at the meeting of the Board held on 15 January 2009 and has continued to be seen to be appropriate. At 31 March 2021 the target of holding a minimum of six months costs has been achieved based on resources expended during the year to 31 March 2021.
Risk Assessment
A risk assessment framework was last agreed by the Chaplaincy Board during 2010. The main risk identified was the ongoing financial support to the Chaplaincy from its main contributors. While increased funding has been secured from several existing key funders in the past financial year, the chaplaincy has lost funding from one of its founder members. The Chaplaincy is examining ways to maintain current levels of expenditure and reserves. Due to the COVID-19 pandemic the Chaplaincy has reassessed the risk of ongoing financial support. All key donors have confirmed they will be able to donate the same amount going forward in the short term, but this will need to be reassessed to ensure funding is secured for future years.
Due to the COVID-19 pandemic the Chaplaincy is in the process of re-evaluating the risks it is facing including the following impacts upon its key risks:
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Funding - whilst all key donors have confirmed their intention that they will be able to donate the same funds going forward in the short-term, the impact of COVID-19 on the ability of donors to provide funding in the longer term will need to be reassessed;
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Governance - significant turnover of the Trustee body during the year. Two Trustees resigned during the year. At the time of signing, no further appointments gave been made to the board;
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Resourcing - the impact of COVID-19 upon the level of resource that can be provided to the Chaplaincy staff and volunteer body.
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021 (continued)
Plans for the future
The Chaplaincy’s physical presence at Manchester Airport
The Manchester Transformation Programme, a 10-year £1 billion+ investment programme to improve facilities for Manchester Airport’s passengers will bring radical changes and improvements to the physical environment of the airport.
The Chaplaincy will continue to ensure that Airport management (and particularly the Airport Transformation Programme Team) understands and values the many different (and sometimes conflicting) tasks that are required of the chaplaincy team by airport colleagues and management (as well as partners around the world). The Chaplaincy manages many of the rare and precious quiet spaces around the Airport: not just the well-used multifaith prayer rooms (both landside and airside), but also other private spaces that can be used for supporting those who are vulnerable, comforting those in distress, offering a discreet space for emotional family reunions or pastoral counselling or practical humanitarian assistance for those who are destitute.
These spaces will need to be located appropriately, so that services can be accessed easily by chaplaincy, airport colleagues and clients, but also to ensure safe and healthy working practices for Chaplaincy staff. As Terminal 1 nears the end of its life, enhanced chaplaincy facilities will need to be in place in Terminal 3, comparable to its footprint in Terminal 2. Ensuring that The Chaplaincy continues to engage with the consultation and planning process will ensure that the Airport’s customers and staff receive the best possible care – often in instances of unbearably difficult circumstances.
Effective Governance and Management
The Chaplaincy Board (in full consultation with the Chaplaincy Team) has reviewed all of its policies and procedures, employment and appointment documents over the past two years.
In response to the inevitable disruption and uncertainty for individual staff and for airlines and airport-based companies as they respond to rapid and radical shifts in business, commerce and international relations, including Britain’s departure from the EU and increasing perceived threat of terrorism abroad and at home, the Chaplaincy Board needs to develop the service the Chaplaincy is able to offer the airport community.
The first step in this regard is to ensure that the Board, which has lost a number of members due to redundancy, retirement or restructuring, in appointing new members, is fully representative of the community it serves and has the capacity to ensure appropriate accountability, governance and direction. The Board will also re-examine its constitution to ensure that this document is able to provide direction to the chaplaincy and its role in the third decade of the 21st century. As the aviation sector recovers globally, and Manchester Airport resumes its rapid growth and development, careful attention to the appropriate size and composition of the Chaplaincy Team (and the Board which oversees its work) will be necessary. The development of Airport City, and the airport and chaplaincy’s work in addressing issues around rough sleeping, homelessness, criminal exploitation and trafficking and support of refugees will require ever stronger partnership with local faith communities in Wythenshawe (Airport City North) and Hale Barns and Wilmslow (Global Logistics Hub), as we find new ways of working across the wider airport site. We continue successfully to develop contacts with local faith communities to broaden our engagement with the whole spectrum of our local communities.
Effective training and deployment
The Coordinating Chaplain, in consultation with the Board will continue to ensure that the Chaplaincy team is effectively coordinated and deployed; engaged in collaborative working practices, while each individual Chaplain is encouraged to develop specific areas of responsibility. Appropriate training will also ensure that the whole Chaplaincy team, whether volunteers or paid employees, part-time or full-time can feel confident in working collaboratively as part of one team.
The Chaplaincy will continue to develop its work among the 200+ businesses that make up Manchester Airport and to enhance its visibility among staff and the local faith communities.
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The Chaplaincy, Manchester Airport
Trustees’ report for the year ended 31 March 2021 (continued)
Plans for the future (continued)
Protecting vulnerable passengers
The Chaplaincy has worked with Manchester Airport and associated companies in providing a framework for training staff in protecting vulnerable passengers and creating awareness among the public of the airport’s desire to ensure the safety and wellbeing of all who work at, or pass through the airport, and who may be vulnerable to violence, exploitation or coercion.
The Chaplaincy will continue to develop training for staff and to raise public awareness of Safeguarding, Trafficking and related issues. As a founder-member of the GM Modern Slavery NGO Forum, convened by the Modern Slavery Coordination Unit of Greater Manchester Police, The Chaplaincy will continue to represent the interests of vulnerable passengers in local, regional and national networks, such as the Safeguarding Vulnerable Persons Unit of the HBA Steering Group, the Greater Manchester Modern Slavery Multi-faith Forum and other networks.
Visibility and engagement with Airport staff, passengers and neighbours
The Chaplaincy will continue to maximise our personal visibility through regular and systematic visiting around the Airport and one-to-one engagement. We will also increase and develop our profile through publicising our work as widely as possible, through the use of social media and the chaplaincy website, as well as through the provision of information leaflets, monthly newsletters and six-monthly updates (“Roots and Wings”), and by speaking to national conferences, regional and local groups and organisations, as opportunities present themselves (though, again, we are already operating at near capacity in responding to speaking engagements).
The Chaplaincy will continue to respond appropriately to pastoral / liturgical requests in response to the death of serving colleagues, members of the public with connections to the airport, as well as to the needs of the families of those whose mortal remains are brought through the airport and in relation to longer-term provision of memorials around the airport as needs arise.
The Chaplaincy will also build on and develop existing positive and constructive inter-faith engagement through the provision of opportunities for dialogue and social engagement to ensure that members of all faith communities (and those who describe themselves as secular, humanist, atheist or agnostic) in and beyond the Airport are supported, helped and guided as appropriate.
Disclosure of information to auditor
The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant audit information of which The Chaplaincy’s auditor is unaware; and each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that The Chaplaincy’s auditor is aware of that information.
During the year the Trustees resolved to appoint Fairhurst Accountants as auditors for the year ending 31[st] March 2022.
By order of the Trustees and signed on behalf of the Board of Trustees
Rad Taylor
Date: 25 January 2022
Registered address: Olympic House Manchester Airport Manchester M90 1QX
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Statement of Trustees' responsibilities in respect of the trustees’ report and the financial statements
Under the trust deed of the charity and charity law, the trustees are responsible for preparing a Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The trustees are required to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland .
The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources for that period.
In preparing these financial statements, generally accepted accounting practice entails that the trustees:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards and statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
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state whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements;
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assess the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
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use the going concern basis of accounting unless they either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
The trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping accounting records which are sufficient to show and explain the charity’s transactions and disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
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Independent auditor’s report to the members of The Chaplaincy, Manchester Airport
Opinion
We have audited the financial statements of The Chaplaincy, Manchester Airport (“the charitable company”) for the year ended 31[st] March 2021 which comprise the Statement of Financial Activities, incorporating the income and expenditure account, balance sheet and related notes, including the accounting policies in note 1.
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31[st] March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charitable company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
Going concern
We draw attention to note 1 on page 16 to the financial statements which indicates that the Charity’s ability to continue as a going concern is dependent on the going concern status of its main donor, Manchester Airport Holdings Limited. The financial statements of Manchester Airport Holdings Limited include a material uncertainty related to going concern and therefore the ongoing provision of these donations is subject to doubt. These events and conditions, along with the other matters explained in page 16 constitute a material uncertainty that may cast significant doubt on the Charity’s ability to continue as a going concern.
Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
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Enquiring of trustees and inspection of policy documentation as to the entities’ high-level policies and procedures to prevent and detect fraud. including the channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud.
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Reading Board meeting minutes.
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Using analytical procedures to identify any unusual or unexpected relationships.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries.
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Independent auditor’s report to the members of The Chaplaincy, Manchester Airport (continued)
In this audit we do not believe there is a fraud risk related to revenue recognition because there is is little opportunity due to the limited number of transactions and limited number of sources of income. There is no appetite for fraudulent / misreporting as income predominantly comes from a related party entity and there is no incentive for management to fraudulently recognise revenue incentive from a management / trustee perspective.
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience. through discussion with the trustees and discussed with the trustees the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit [. ] The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the entity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the entity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of entities’ license to operate.
We identified the following areas as those most likely to have such an effect: health and safety and employment law. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for
Other information
The trustees are responsible for the other information, which comprises the Trustees' Annual Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
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we have not identified material misstatements in the other information;
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in our opinion the information given in the Trustees' Annual Report, which constitutes the directors’ report for the financial year, is consistent with the financial statements; and
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in our opinion the report has been prepared in accordance with the Companies Act 2006.
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Independent auditor’s report to the members of The Chaplaincy, Manchester Airport (continued)
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report to you if, in our opinion:
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the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
We have nothing to report in these respects.
Trustees’ responsibilities
As explained more fully in their statement set out on page 10, 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; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the charitable 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 they either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
The purpose of our audit work and to whom we owe our responsibilities
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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Liam Finnigan (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 St Peter’s Square Manchester M2 3AE
Date: 25 January 2022
13
The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2021
Statement of financial activities, incorporating the income and expenditure account, for the year ended 31 March 2021
| Total funds | Total funds |
|---|---|
| year ended | year ended |
| 31 March | 31 March |
| 2021 | 2020 |
| Note £ |
£ |
| Incoming resources Donations 2 126,731 Other income - government grants 3 26,993 |
123,782 - |
| Total incoming resources 153,724 |
123,782 |
| Resources expended Charitable activities Salaries 4 (106,197) Travel and subsistence (893) Management and administration expense (15,731) |
(108,633) (6,729) (19,585) |
| Total resources expended for charitable activities (122,821) |
(134,947) |
| Net surplus/(deficit) 5 30,903 |
(11,165) |
| Reconciliation of funds Total funds brought forward 27,513 Total funds carried forward 58,416 |
38,678 27,513 |
All the above results derive from continuing operations. All the above relate to unrestricted funds.
The accompanying accounting policies and notes on pages 16 to 19 form an integral part of the financial statements.
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The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2021
Balance sheet as at 31 Match 2021
----- Start of picture text -----
2021 2020
Note £ £
Current assets
Trade and other debtors 7 15,411 17,747
Cash at bank and in hand 63,220 27,584
78,631 45,331
Creditors - amounts falling due within one year 8 (20,215) (17,818)
Total assets less current liabilities 58,416 27,513
Funds
General unrestricted funds 58,416 27,513
----- End of picture text -----
The financial statements on pages 16 to 19 were approved by the Trustee Board and were signed on its behalf by:
Rad Taylor Trustee 25 January 2022
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The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2021
Notes to the financial statements
1. Accounting policies
The financial statements have been prepared in accordance with 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 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Chaplaincy, Manchester Airport meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The presentational currency of these financial statements is sterling.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charitable company’s financial statements. The financial statements are filed annually with the Registrar of Companies.
Going Concern
The financial statements have been prepared on a going concern basis which the trustees consider to be appropriate for the following reasons.
At 31 March 2021 the Company had cash of £63,220 (2020 - £27,584) and net assets of £58,416 (2020 - £27,513). The Trustees have prepared a going concern assessment which considers the period from the date of approval of these financial statements to the end of its March 2023 financial year. These forecasts indicate that the Company will have sufficient funds, to continue to operate and to meet its liabilities as they fall due throughout that period.
The Company is dependent on donations from Manchester Airports Holdings Limited in order to operate, with the majority of its income being derived from this source. As such the Trustees recognise that their assessment is dependent upon Manchester Airports Holdings Limited continuing to provide donations at levels consistent with prior years. Manchester Airports Holdings Limited has confirmed its intention to provide these donations, which in turn would permit the Company to continue to operate as going concern.
However, the Directors of Manchester Airports Holdings Limited have concluded that a material uncertainty exists over that group’s ability to continue as a going concern, as detailed in the basis of preparation on page 58 of the Manchester Airports Holdings Limited annual report for the year to March 2021, which is publicly available on the company website or Companies House. Should Manchester Airport Holdings Limited cease to operate as a going concern this would in turn prevent it from providing this company with the donations that it needs to continue to operate.
Based upon their enquiries, the Trustees believe that it is reasonable to continue to adopt the going concern basis in preparing the annual report and financial statements. However, these circumstances represent a material uncertainty that may cast significant doubt on the Chaplaincy’s ability to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
Basis of accounting
The financial statements have been prepared in accordance with applicable accounting standards under the historical cost convention and follow the recommendations in Accounting and Reporting by Charities: Statement of Recommended Practice FRS 102.
Under FRS 102, the company is exempt from the requirement to prepare a cash flow statement on the grounds of its size.
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The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2021
Notes to the financial statements (continued)
1. Accounting policies (continued)
Incoming resources
Income is recognised in the statement of financial activities (SoFA) when a transaction or other event results in an increase in the charity's assets or a reduction in its liabilities. Income is only recognised in the accounts when all of the following criteria are met:
-
control over the rights or other access to the economic benefit has passed to the charity;
-
it is more likely than not that the economic benefits associated with the transaction or gift will flow to the charity; and
-
the monetary value or amount of the income can be measured reliably and the costs incurred for the
-
● transaction and the costs to complete the transaction can be measured reliably.
Government grants
The income based grant consists of the Coronavirus Job Retention Scheme. Income arising from this grant is recorded in "other income - government grants" within the income statement, and amounts receivable under the scheme are included within other receivables in the balance sheet.
Resources expended
All expenses are accounted for on an accruals basis. Such costs are allocated between charitable expenditure, management and administration and governance costs. Staff costs are allocated according to the costs of staff working directly in the relevant activity. Other costs are apportioned using an appropriate basis of allocation.
Pension costs
The Chaplaincy contributes to defined contribution schemes on behalf of its chaplain. Other employees receive contributions to a money purchase scheme. All pension contributions are charged to the statement of financial activities as they are incurred.
Debtors and creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, bank deposits and short term deposits net of bank overdrafts, which have an original maturity of three months or less.
Funds
Unrestricted funds are funds which can be used in accordance with the charitable objectives at the discretion of the Trustees. There are no restricted funds.
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The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2021
Notes to the financial statements (continued)
2. Incoming resources
Incoming resources represents donations received.
All incoming resources arise in the United Kingdom and are attributable to one activity.
3. Other income - government grants
Other income relates to amounts paid to the charity by Manchester Airport PLC for furlough claims made by that company in respect of staff whose costs are borne by the Chaplaincy and these amounts have been accordingly recognised as other income.
----- Start of picture text -----
2021 2020
£ £
Coronavirus Job Retention Scheme 26,993 -
-
26,993
4. Information regarding trustees and employees
2021 2020
Number Number
Average number of persons employed
Care services 5 7
Staff costs during the period
2021 2020
£ £
Gross wages and salaries 84,117 88,283
Employer's national insurance and pensions costs 22,080 20,350
106,197 108,633
----- End of picture text -----
None of the Trustees received any remuneration from The Chaplaincy (2020 - none), and none were reimbursed for any expenses incurred (2020 - none).
5. Net surplus
----- Start of picture text -----
||||
|---|---|---|
|2021|2020|
|£|£|
|Net surplus is stated after charging:|
|Auditor's remuneration|12,500|10,000|
----- End of picture text -----
Auditor’s remuneration has been borne by a related party in 2021 and has not yet been paid for 2021, but post year end Manchester Airports Holdings Limited confirmed that it would pay this in full on behalf of the charity. As this commitment was not received by the year end this has not been recognised as a donation in the year to March 2021 and will be recorded in the following financial year to March 2022.
6. Tax on profit on ordinary activities
The Chaplaincy, Manchester Airport, 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 taxation purposes. Accordingly, The Chaplaincy is potentially exempt from taxation in respect of income or capital gains received with 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 purpose.
18
The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2021
Notes to the financial statements (continued)
7. Debtors
----- Start of picture text -----
2021 2020
£ £
Trade debtors 2,000 17,747
Other debtors 13,236 -
Prepayments and accrued income 175 -
15,411 17,747
8. Creditors - Amounts falling due within one year
2021 2020
£ £
Trade creditors - -
Accruals 20,215 10,000
20,215 10,000
----- End of picture text -----
9. Related party transactions
The Chaplaincy receives donations from Manchester Airport plc and other organisations that operate at the airport as well as local church diocese, to cover its charitable expenses. All donations received during the year are shown in total income in the Statement of Financial Activities. Some of these organisations have directors who are also trustees of The Chaplaincy resulting in related party transactions:
Manchester Airport Plc provided a donation of £87,122 (2020 - £87,122) Manchester Diocese provided a donation of £12,000 (2020 - £12,000)
SSP Air Limited provided a donation of £nil (2020 - £3,247)
10. Members
The Chaplaincy is incorporated as a company limited by guarantee having no share capital. It is registered in England, in the United Kingdom.
Every member of the company undertakes to contribute such amount as may be required (not exceeding £1) to the company’s assets if it should be wound up while he or she is a member, or within one year after he or she ceases to be a member, for payment of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves.
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