2021-04-05-accounts

CHARITY REGISTRATION NUMBER: 1080182

Immanuel Presbyterian Church, Caerau Unaudited Financial Statements 5 April 2021

GORDON DOWN & COMPANY LIMITED

Accountants and business advisors 144 Walter Road Swansea SA1 5RW

Immanuel Presbyterian Church, Caerau

Financial Statements

Year ended 5 April 2021

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	6
Statement of financial activities	7
Statement of financial position	8
Notes to the financial statements	9

Immanuel Presbyterian Church, Caerau

Trustees' Annual Report

Year ended 5 April 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 5 April 2021.

Reference and administrative details

Registered charity name Immanuel Presbyterian Church, Caerau Charity registration number 1080182 Principal office Church Office 10 Panteg Close Culverhouse Cross Cardiff CF5 4TW The trustees Mr T D Bees (Elder) Dr P J Corney (Elder) Rev Dr P J Naylor (Elder) Mr J Tucker (resigned 9 January 2021) Mr D Union Accountants Gordon Down & Company Limited Accountants and business advisors 144 Walter Road Swansea SA1 5RW

1

Immanuel Presbyterian Church, Caerau

Trustees' Annual Report (continued)

Year ended 5 April 2021

Structure, governance and management

Governing document

Immanuel Presbyterian Church, Caerau is constituted under a Trust Deed dated 16 May 1999 and revised on 13 August 2013 and has registered charity number 1080182.

Organisational structure

The Trustees who have served during the year and since the year-end are set out on page 1 together with other legal and administrative information. The church is ruled by its ordained elders. The "Trustee", so called, is a custodial trustee for property only. The Trustees are elected by the Elders' session.

Appointment and induction of new trustees

Trustees are appointed by the Elders’ session. The elders are responsible for the induction of any new Trustee. This involves making them aware of a Trustee's responsibilities and of the nature of the governing document and administrative procedures. A new Trustee would be given access to a copy of the charity's Trust Deed together with a copy of the charity's latest Annual Report and Accounts.

Key management remuneration

The elders of the church are considered to be the key management personnel of the charity. Details of Trustee remuneration and other benefits are disclosed at note 14. Details of Trustee expenses and related party transactions are disclosed in notes 14 and 19 respectively. Total payments to all key management personnel is included in note 13.

Risk management

The Trustees have conducted a review of the major risks to which the charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risk the charity faced. These procedures are periodically reviewed to ensure they continue to meet the needs of the charity.

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Immanuel Presbyterian Church, Caerau

Trustees' Annual Report (continued)

Year ended 5 April 2021

Objectives and activities

Objectives and aims

The object of Immanuel Presbyterian Church, Caerau hereinafter called 'the Church' is to advance the Christian Religion in accordance with its declared Confession of Faith and Subordinate Standards. In furtherance of the above object but not further or otherwise, the Church has the following powers:

(a) to establish and build up a Christian church according to the teaching of Scripture, that is a church in the fullest sense of the term as found in Scripture;

(b) to declare the whole counsel of God as revealed in holy Scripture and summarised in the Confession of Faith and Subordinate Standards of the Church;

(c) to express the Christian life within and outside the fellowship of the Church;

(d) to erect or acquire, maintain and, if necessary, dispose of such land and buildings as are needful to accomplish the object, and for no other purposes than those consistent with charitable status;

(e) to seek and establish visible union with all like-minded churches, i.e. with churches which have the same, or a closely compatible, confessional basis and form of government.

(f) to seek association i.e. fraternal or sister-church relations, with other Reformed or Presbyterian churches subscribing to the Westminster Confession of Faith or the Three Forms of Unity (i.e. the Belgic Confession, the Heidelberg Catechism and the Canons of Dort) or a compatible Reformed confession;

(g) to co-operate wherever possible, on a Biblical basis appropriate to each category, with other Christian churches and organisations;

(h) to establish and maintain, according to the providence of God, such institutions and structures as will provide for: Christian education; theological training; care of the old and infirm; good works to be done to all men and especially those of the household of faith, and

(i) to undertake the task of church extension and foundation as the persuasion of Scripture, providence and the Holy Spirit direct and constrain.

Volunteers

While employing two members of staff the charity also has numerous volunteer helpers who are responsible for the support of many activities in the church. It is not possible to place a monetary value on the contributions made by volunteers nor are figures available that show how many hours of service they provide.

Achievements and performance

Immanuel Presbyterian Church, Caerau promotes the Christian Religion primarily but not exclusively within the districts of Ely in the City of Cardiff.

Public benefit statement

The Elders confirm that they have complied with the duty under the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit when planning church activities for the year. Public benefit is provided principally by the provision of a Place of Worship, with regular public meetings held for worship. The Church seeks to fulfil its charitable objectives in the advancement of the Christian Religion.

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Immanuel Presbyterian Church, Caerau

Trustees' Annual Report (continued)

Year ended 5 April 2021

Developments within the charity

The period 6 April 2020 - 5 April 2021 has seen progress in the life of the church as indicated below.

The objects of the charity are to advance the Christian religion in accordance with the Westminster standards, to the glory of God and the benefit of mankind everywhere. These objects are effected by preaching the gospel of Jesus Christ and teaching Christian doctrine; by providing the means to allow believers to practise their faith; by applying Christian doctrine and making available literature to explain faith and how to outwork it in life; to administer the sacraments of baptism and the Lord’s Supper; by distributing copies of the Bible; and by showing practical Christian charity to those in need. The public services of the church are open to all. Recordings of sermons are regularly uploaded and freely available to all via the Internet, and Christian literature is displayed and available without charge.

It is affirmed that these objects, in particular the public worship and the administration of the sacraments, cannot be achieved unless persons are physically present in assembly.

As a result of lockdown churches were not allowed to assemble for part of the period of this report. During those periods limited provisions were made via the internet. The Remembrance Day service and the Christmas carol service were held in the grounds of the church rather than inside the building.

For the remainder of the period services re-commenced as normal apart from the Mums and Tots group. An online Chat and Catch up was introduced for the women of the church. A harvest thanksgiving service was held in October and donations were made to the Cardiff Food Bank.

During the period two members of long standing died. Two new members were added to the church (with their children) and there were two transfers of membership from another Cardiff Church to Immanuel.

Some maintenance work was done to the building and the toilets were completely renovated.

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Immanuel Presbyterian Church, Caerau

Trustees' Annual Report (continued)

Year ended 5 April 2021

Financial review

Going concern

Having considered budget and cash flow projections for the next twelve months, and the consequences of Covid-19 and other events and conditions, the Trustees are confident that the Church will continue to meet its liabilities as they fall due for the foreseeable future and consider that there are no material uncertainties about the Church's ability to continue as a going concern. It is therefore considered appropriate by the Trustees to prepare the financial statements on a going concern basis.

The accounts comply with the current statutory requirements and the charity's governing documents.

Total incoming resources for the year of £101,532 (2020 - £106,444) consist almost entirely of donations received of £84,565 (2020 - £86,796) and tax refunds of £16,949 (2020 - £18,977). A significant proportion of the total expenditure of £76,435 (2020 - £83,027) relates to ministry support.

Incoming resources exceeded resources expended by £25,097 (2020 - £23,417).

Reserves Policy

The Elders have examined the level of reserves held at the year end in light of the main risks facing the organisation. A policy has been established to maintain sufficient reserves equivalent to up to two months operating costs. This is estimated to be approximately £12,500.

The free reserves of a charity represent the funds that are freely available to spend. In calculating the free reserves, the Elders have deducted from the total of unrestricted funds any funds designated at the year end and the net book value of all tangible fixed assets as detailed in the accounts after adjusting for associated borrowing. This leaves a surplus of free reserves at 5 April 2021 of £41,334 which is above the target set by the Elders for free reserves. The policy is reviewed by the Elders on an ongoing basis.

A designated fund was in place during the year which was set up by the Elders in 2016 to prepare for the future ministerial needs of the church. The total funds designated at the year end were £24,259.

The trustees' annual report was approved on 2 February 2022 and signed on behalf of the board of trustees by:

Mr T D Bees (Elder) Trustee

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Immanuel Presbyterian Church, Caerau

Independent Examiner's Report to the Trustees of Immanuel Presbyterian Church, Caerau

Year ended 5 April 2021

I report to the trustees on my examination of the financial statements of Immanuel Presbyterian Church, Caerau ('the charity') for the year ended 5 April 2021.

Responsibilities and basis of report

As the trustees of the charity, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. the financial statements do not accord with those records; or

3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Independent Examiner

Mark Williams FCA of Gordon Down & Company Limited 144 Walter Road Swansea SA1 5RW

3 February 2022

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Immanuel Presbyterian Church, Caerau

Statement of Financial Activities

5 April 2021

		2021		2020
		Unrestricted
		fundsTotal funds		Total funds
	Notes	£	£	£
Income and endowments
Donations and legacies	4	101,514	101,514	105,773
Investment income	5	18	18	21
Other income	6	-	-	650
		────────	────────	────────
Total income		101,532	101,532	106,444
		════════	════════	════════
Expenditure
Expenditure on charitable activities	7,8	76,435	76,435	83,027
		────────	────────	─────────
Total expenditure		76,435	76,435	83,027
		════════	════════	═════════
		────────	────────	─────────
Net income and net movement in funds		25,097	25,097	23,417
		════════	════════	═════════
Reconciliation of funds
Total funds brought forward		386,647	386,647	363,230
		─────────	─────────	─────────
Total funds carried forward		411,744	411,744	386,647
		═════════	═════════	═════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 9 to 16 form part of these financial statements.

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Immanuel Presbyterian Church, Caerau

Statement of Financial Position

5 April 2021

	Notes	2021	2020
		£	£
Fixed assets
Tangible fixed assets	15	346,151	329,885
Current assets
Debtors	16	8,385	10,422
Cash at bank and in hand		58,903	47,951
		────────	────────
		67,288	58,373
Creditors: amounts falling due within one year	17	1,695	1,611
		────────	────────
Net current assets		65,593	56,762
		─────────	─────────
Total assets less current liabilities		411,744	386,647
		═════════	═════════
Funds of the charity
Unrestricted funds		411,744	386,647
		─────────	─────────
Total charity funds	18	411,744 ═════════	386,647 ═════════

These financial statements were approved by the board of trustees and authorised for issue on 2 February 2022, and are signed on behalf of the board by:

Mr T D Bees (Elder) Trustee

The notes on pages 9 to 16 form part of these financial statements.

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements

Year ended 5 April 2021

1. General information

The charity is a registered charity in England and Wales and is unincorporated. The address of the principal office is Church Office, 10 Panteg Close, Culverhouse Cross, Cardiff, CF5 4TW.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity, and rounded to the nearest £1.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the charity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

• Significant judgements - There are currently no key judgements that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements.

• Key sources of estimation uncertainty - There are currently no key assumptions or other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Taxation

The charity is exempt from tax on its charitable activities.

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements (continued)

Year ended 5 April 2021

3. Accounting policies (continued)

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements (continued)

Year ended 5 April 2021

3. Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Donated services

Much of the work of the charity is carried out voluntarily by its members. No adjustment has been made to the accounts for the estimated value of these services as the Trustees do not consider that any financial cost has been borne by any third party.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	0% on land and 2% on buildings
Fixtures and fittings	-	25% straight line
Computer equipment	-	33% straight line
Improvements to property	-	10% straight line

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements (continued)

Year ended 5 April 2021

3. Accounting policies (continued)

Impairment of fixed assets

Fixed assets and investments are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the Statement of Financial Activities in the year in which it occurs.

Financial instruments

The Church only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which would be subsequently measured at the carrying value plus accrued interest less repayments.

4. Donations and legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Donations
Offerings	84,565	84,565	86,796	86,796
Gift Aid	16,949	16,949	18,977	18,977
	────────	────────	────────	────────
	101,514	101,514	105,773	105,773
	════════	════════	════════	════════

5. Investment income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Interest receivable	18	18	21	21
	════	════	════	════

6. Other income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Hall rental	-	-	650	650
	════	════	════	════

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements (continued)

Year ended 5 April 2021

7. Expenditure on charitable activities by fund type

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Ministerial and Pastoral activities	50,106	50,106	62,720	62,720
Support costs	26,329	26,329	20,307	20,307
	────────	────────	─────────	─────────
	76,435	76,435	83,027	83,027
	════════	════════	═════════	═════════

8. Expenditure on charitable activities by activity type

	Activities
	undertaken	Grant funding		Total funds	Total funds
	directly	of activities	Support costs	2021	2020
	£	£	£	£	£
Ministerial and Pastoral
activities	41,376	8,730	24,961	75,067	81,769
Governance costs	–	–	1,368	1,368	1,258
	────────	───────	────────	────────	─────────
	41,376	8,730	26,329	76,435	83,027
	════════	═══════	════════	════════	═════════

9. Analysis of support costs

	Analysis of
	support costs	Total 2021	Total 2020
	£	£	£
Wages & salaries	1,956	1,956	144
Maintenance & services	13,141	13,141	10,970
PPS, telecoms & insurance	1,815	1,815	1,670
Governance costs	1,368	1,368	1,258
Depreciation	7,759	7,759	5,911
Sundries	290	290	354
	────────	────────	────────
	26,329	26,329	20,307
	════════	════════	════════
Analysis of grants
		2021	2020
		£	£
Grants to institutions
Support for ministry in Poland		2,470	2,220
Support for ministry in Berlin		750	1,882
EPCEW		2,500	2,500
Christian Concern		1,000	-
Westminster Seminary		500	-
Zurich church plant		1,000	-
		───────	───────
		8,220	6,602
Grants to individuals
Grants to individuals		510	1,256
		───────	───────
Total grants		8,730	7,858
		═══════	═══════

10. Analysis of grants

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements (continued)

Year ended 5 April 2021

11. Net income

Net income is stated after charging/(crediting):

Net income is stated after charging/(crediting):
	2021	2020
	£	£
Depreciation of tangible fixed assets	7,759	5,911
	════════	════════
Independent examination fees
	2021	2020
	£	£
Fees payable to the independent examiner for:
Independent examination of the financial statements	360	330
Other financial services	1,008	928
	───────	───────
	1,368	1,258
	═══════	═══════

12. Independent examination fees

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as	The total staff costs and employee benefits for the reporting period are analysed as	follows:
	2021	2020
	£	£
Wages and salaries	34,519	38,474
Social security costs	-	637
Employer’s contribution to pension schemes	4,006	4,378
Other employee expenses and benefits	583	6,048
	────────	────────
	39,108	49,537
	════════	════════

The charity had two employees in the year as noted below in note 14 Trustees' remuneration and expenses. The total employee benefits of the charity's key management personnel were £37,151 (2020 - £36,022).

The average head count of employees during the year was 2 (2020: 2).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements (continued)

Year ended 5 April 2021

14. Trustees’ remuneration and expenses

The charity had two employees during the year, one of whom (the Minister of the church) is also a Trustee. His remuneration during the year was as follows:

	2021	2020
	£	£
Trustees' salaries	32,562	31,077
Trustees' pension paid	4,006	3,933
Trustees' Benefits in kind (business expenses and travel)	583	1,012
	────────	────────
	37,151	36,022
	════════	════════

The charity's Constitution makes provision for payments to be made to a trustee.

Trustees’ expenses

Payments to reimburse the Trustees during the year totalled £898. These were in respect of three Trustees for the cost of travel, theological resources, equipment, and office supplies. It appears that in many cases the Trustees acted as agent of the charity and made purchases on its behalf. Such expenditure was not related to the service provided by the Trustees.

15. Tangible fixed assets

	Freehold	Fixtures and	Computer	Improvements
	property	fittings	equipment	to property	Total
	£	£	£	£	£
Cost
At 6 April 2020	362,209	25,184	225	106,614	494,232
Additions	–	-	–	24,025	24,025
	─────────	────────	────	─────────	─────────
At 5 April 2021	362,209	25,184	225	130,639	518,257
	═════════	════════	════	═════════	═════════
Depreciation
At 6 April 2020	38,930	24,731	224	100,462	164,347
Charge for the year	3,244	187	–	4,328	7,759
	─────────	────────	────	─────────	─────────
At 5 April 2021	42,174	24,918	224	104,790	172,106
	═════════	════════	════	═════════	═════════
Carrying amount
At 5 April 2021	320,035	266	1	25,849	346,151
	═════════	════════	════	═════════	═════════
At 5 April 2020	323,279	453	1	6,152	329,885
	═════════	════════	════	═════════	═════════
Debtors
				2021	2020
				£	£
Other debtors				8,385	10,422
				════════	════════

16. Debtors

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Immanuel Presbyterian Church, Caerau

Notes to the Financial Statements (continued)

Year ended 5 April 2021

17. Creditors: amounts falling due within one year

	2021	2020
	£	£
Bank loans and overdrafts	-	-
Creditors and accruals	1,695	1,611
	────────	────────
	1,695	1,611
	════════	════════

18. Analysis of charitable funds

Unrestricted funds

	At 6 April			At 5 April
	2020	Income	Expenditure	2021
	£	£	£	£
General funds	386,647 ═════════	101,532 ════════	(76,435) ════════	411,744 ═════════

Designated funds are part of the charity's total unrestricted funds noted above and represent amounts earmarked by the Elders to be used for particular purposes in the future. The Elders have the power to re-designate such funds within unrestricted funds. Designated funds are not disclosed separately on the charity's Statement of Financial Activities nor on its Balance Sheet.

Future Ministry fund

This designated fund was set up in 2016 to prepare for the future ministerial needs of the church. At the start of the year funds held totalled £22,722. The total of support donated during the year was £1,537 and the total of expenditure incurred was £nil giving a closing balance of £24,259 at the year end which is represented by a bank balance.

Special offerings

There was a freewill offering towards the cost of renovations to the church building that were undertaken in the year. The total collected was £3,870. This amount was fully spent in the year.

19. Related parties

The aggregate value of unconditional donations made by the Trustees and other related parties in the year to 5 April 2021 was £19,998 (2020 - £28,180).

20. Pensions and other post-retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £4,006 (2020: £4,378).

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