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2022-03-31-accounts

The Chaplaincy, Manchester Airport

(a company limited by guarantee)

Annual Report and Financial Statements For the year ended 31 March 2022

Registered Company Number: 03664008 Registered Charity Number: 1074781

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Table of contents

Table of contents
Trustees and advisers for the year ended 31 March 2022
……………………………………………....		 1
Trustees’ report for the year ended 31 March 2022
……………………………………………………		 2
Statement of Trustees' responsibilities in respect of the trustees’ report and the financial statements
….		 10
Report of the independent auditors to the members of The Chaplaincy, Manchester Airport
…………...		 11
Statement of financial activities
…………………………………………………………………………		 14
Balance sheet
……………………………………………………………………………………………		 15
Notes to the financial statement
…………………………………………………………………………		 16

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees and advisers for the year ended 31 March 2022

Trustees

R. Taylor 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

Secretary

Z. Hopkins

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

Fairhurst Chartered Accountants & Registered Auditors Douglas Bank House Wigan Lane Wigan WN1 2TB

1

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022

The Trustees of The Chaplaincy, Manchester Airport (The Chaplaincy) present their annual report and the audited financial statements for the year ended 31 March 2022.

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.

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, 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 2022 the Company had cash of £79,244 (2021: £63,220) and net assets of £78,407 (2021*: £70,916). 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.

2

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022 (continued)

Going concern and basis of preparation (continued)

However, continued support is dependent on the ability of the Manchester Airports Holdings Limited Group being able to settle its liabilities as they fall due. The directors of Manchester Airports Holdings Limited have concluded that a material uncertainty exists over the Manchester Airports Holdings Limited Group's ability to continue as a going concern. Under the severe but plausible downside scenario, the leverage test in March 2023 would be expected to breach the Group’s covenant terms when tested. In such an event MAG would engage with its secured creditors in order to look to obtain further covenant waivers or amendments. In making this assessment, the Directors have considered the latest forecast position taking account of current economic assumptions including consumer spending, inflation, energy prices and the mini budget announced by the UK government on 23 September 2022.

Based on their enquiries the Trustees believe that it remains appropriate to prepare the financial statements on a going concern basis. However, these circumstances represent a material uncertainty which 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 2 full time chaplains 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.

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.

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.

3

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022 (continued)

Achievement and performance (continued)

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 2021-2022 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.

Our five multi-faith prayer rooms across three airport terminals are not lockable, so have remained open throughout 2021-2022, 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.

4

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022 (continued)

Achievement and performance (continued)

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 2022.

The Chaplaincy’s general performance during 2021/2022 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. 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 2022 are set out below:

Manchester Airport plc Chester Diocese Shrewsbury Diocese The Diocese of Manchester Foreign, Commonwealth & Development Office

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 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

5

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022 (continued)

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 14. A surplus was made of £7,491 in 2022 (2021*: £43,403 surplus). Donations received from existing donors decreased 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 2022 was higher than at 31 March 2021. 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 £7,491 has been transferred to reserves (2021*: surplus of £70,916). The policy for the management of the level of reserves held is set out below.

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 2022 are £78,407 (2021*: £70,916). 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 2022.

6

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022 (continued)

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:

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.

7

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022 (continued)

Plans for the future (continued)

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.

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.

8

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Trustees’ report for the year ended 31 March 2022 (continued)

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: 14 December 2022

Registered address: Olympic House Manchester Airport Manchester M90 1QX

9

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:

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.

10

REPORT OF THE INDEPENDENT AUDITORS 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 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

We draw attention to note 1 "Going Concern" in the financial statements, which details the reliance by the charitable company on Manchester Airport Holdings Limited (The Group) for donations in order to operate. As stated in note 1, the material uncertainty at The Group also indicates a material uncertainty which may cast doubt upon the entity's future donations, and thus its ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

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.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE CHAPLAINCY, MANCHESTER AIRPORT

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, The Companies Act 2006, UK Tax, employment, pension and health & safety regulations and we considered the extent to which non--compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and Charities Act.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE CHAPLAINCY, MANCHESTER AIRPORT

Our responsibilities for the audit of the financial statements (continued) Our procedures to respond to risks identified included the following:

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:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspections of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council's website at; https://www.frc.org.ukauditorsresponsibilities. This description forms part of our audit report.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Louise Webster BSc BFP ACA (Senior Statutory Auditor) for and on behalf of Fairhurst Chartered Accountants & Registered Auditors Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB 14 December 2022

13

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Statement of financial activities, incorporating the income and expenditure account, for the year ended 31 March 2022

Total funds Total funds
year ended year ended
31 March 31 March
2022 2021
Restated
Note £ £
Incoming resources
Donations 2 123,495 139,231
Other income -governmentgrants 3 5,807 26,993
Total incoming resources 129,302 166,224
Resources expended
Charitable activities
Salaries 4 (102,723) (106,197)
Travel and subsistence - (893)
Management and administration expense (19,088) (15,731)
Total resources expended for charitable activities (121,812) (122,821)
Net surplus/(deficit) 5 7,491 43,403
Reconciliation of funds
Total funds brought forward 70,916 27,513
Total funds carried forward 78,407 70,916

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.

14

The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Balance sheet as at 31 March 2022

2022 2021
Restated
Note £ £
Current assets
Trade and other debtors 7 1,750 27,911
Cash at bank and in hand 79,244 63,220
80,994 91,131
Creditors - amounts falling due within oneyear 8 (2,587) (20,215)
Total assets less current liabilities 78,407 70,916
Funds
General unrestricted funds 78,407 70,916

The financial statements on pages 14 to 19 were approved by the Trustee Board and were signed on its behalf by:

Rad Taylor Trustee 14 December 2022

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The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

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 2022 the Company had cash of £79,244 (2021 - £63,220) and net assets of £78,407 (2021* - £70,916). 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 98 of the Manchester Airports Holdings Limited annual report for the year to March 2022, 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 2022

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:

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 2022

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.

2022 2021
£ £
Coronavirus Job Retention Scheme 5,807
 26,993
5,807 26,993
4. Information regarding trustees and employees
2022 2021
Number Number
Average number of persons employed
Care services 2 5
Staff costs during the period
2022 2021
£ £
Gross wages and salaries 43,664 84,117
Employer's national insurance and pensions costs 19,472 22,080
Settlement remuneration 39,587 -
102,723 106,197

None of the Trustees received any remuneration from The Chaplaincy (2021 - none), and none were reimbursed for any expenses incurred (2021 - none).

5. Net surplus

5. Net surplus
2022 2021
£ £
Net surplus is stated after charging:
Auditor's remuneration 1,750 12,500

Auditor’s remuneration has been borne by a related party in 2022 and has not yet been paid for 2022, 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 2022 and will be recorded in the following financial year to March 2022.

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The Chaplaincy, Manchester Airport Annual report and financial statements Year ended 31 March 2022

Notes to the financial statements (continued)

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.

7. Debtors

7. Debtors
2022 2021
Restated
£ £
Trade debtors - 2,000
Other debtors 1,750 25,736
Prepayments and accrued income - 175
1,750 27,911

The restated value in 2021 is a result of the £12,500 accrued audit fee, which is paid for by Manchester Airport PLC on behalf of The Chaplaincy, Manchester Airport. This fee should have been recognised as a donation and an other debtor due to the benefit received from the payment, with the current audit fee being recognised in 2022 but the prior year fee not being recognised as such. Therefore a restatement of the prior year audit fee in donation income and other debtors has been included.

8. Creditors - Amounts falling due within one year

2022 2021
£ £
Accruals (2,587) 20,215
(2,587) 20,215

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 £77,122 (2021 - £87,122)

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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