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2021-07-31-accounts

REGISTERED COMPANY NUMBER: 04046637 (England and Wales) REGISTERED CHARITY NUMBER: 1083852

FARNBOROUGH CHRISTIAN OUTREACH UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2021

HPCA Limited Chartered Accountants Station House Connaught Road Brookwood Woking Surrey GU24 0ER

FARNBOROUGH CHRISTIAN OUTREACH

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31st July 2021

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6 to 7
Notes to the Financial Statements 8 to 15
Detailed Statement of Financial Activities 16 to 17

FARNBOROUGH CHRISTIAN OUTREACH

REPORT OF THE TRUSTEES for the year ended 31st July 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st July 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Charity's objects are to promote the advancement of Evangelical Christian Causes on an ecumenical basis.

The principal activity of the charity during the year was the running of the Christian Resources Centre known as 'The Triangle', In addition the Charity sponsored and facilitated a number of local events.

PUBLIC BENEFIT

The Charity is of public benefit in the following ways:

ACHIEVEMENT AND PERFORMANCE

Bookshop sales for the year reduced to £55,138 (compared to £75,977 in 2020) against a background of very difficult trading conditions for retailers as a result of the Covid 19 pandemic restrictions and lockdowns. Out of shop sales including orders for Schools and Churches have continued throughout the period where possible and we have also had support from individual customers with telephone, email and website placed orders.

Voluntary income including legacies for the period was also significantly lower at £34,504 (compared to £56,875 in 2020). However the Charity was helped by Government Covid Grants totalling £12,574 for the period. With restricted trading, expenses and purchases consequently reduced with total resources expended of £102,677 (from £137,426 in 2020) meaning there was a net income for the period of £2,550.

The Charity's subsidiary, The Triangle Café Limited had a turnover for the period of £17,276 (compared to £41,710 in 2020). The subsidiary paid a management charge to the Charity of £3,500 and also received significant Government Grants including Furlough payments of £46,581 for the period. The net result was a profit of £5,463 (compared to a loss of £11,654 in 2020). The café continues to be significantly impacted by the pandemic and was closed for much of 2021. Although now fully open, footfall has not yet recovered to pre-pandemic levels and also the cost of living increases are having an impact on sales as well as expenses.

FINANCIAL REVIEW

Principal funding sources

The main sources of income, derive from the sales of Christian literature and media, donations from members and supporters and sales from the subsidiary, the Triangle Café Limited.

Investment policy

Under the memorandum and articles of association, the charity has the power to make any investment which the trustees see fit, after obtaining advice from a financial expert and having regard to the suitability of investments and the need for diversification.

Reserves policy

The General Fund represents the Unrestricted funds arising from the past operating results. It also represents the free reserves of the charity, as all fixed assets are included in the fixed asset fund, which is a designated fund. The general fund balance was £71,435 at 31st July 2021 and the aim of the trustees is to build this up to a balance which represents 3 months of operating expenditure.

Page 1

FARNBOROUGH CHRISTIAN OUTREACH

REPORT OF THE TRUSTEES for the year ended 31st July 2021

FUTURE PLANS

The General Fund represents the Unrestricted funds arising from the past operating results. It also represents the free reserves of the charity, as all fixed assets are included in the fixed asset fund, which is a designated fund. The general fund balance was £71,435 at 31st July 2021 and the aim of the trustees is to build this up to a balance which represents 3 months of operating expenditure.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Farnborough Christian Outreach (a company limited by guarantee) was incorporated on 3rd August 2000, and was registered with the Charity Commission for England and Wales on 28th November 2000. On 31st January 2001, all of the assets and liabilities of the Farnborough Christian Outreach Trust (an unincorporated Charity, registered under the charity number 285306) were gifted to Farnborough Christian Outreach.

On 15th December 2000, The Triangle Café Limited (company number 4126321) was incorporated, with the sole issued share being held by Farnborough Christian Outreach. This company carries out the activities of the café situated in the new premises of Farnborough Christian Outreach, to which the charity moved in November 2001.

The company was established under its Memorandum of Association which established the objects and powers of the charitable company and is governed by its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10.

Appointment and induction of trustees

Trustees are appointed by the members and at each Annual General Meeting, one third of Board Members will retire from office. On retirement, trustees are eligible for re-election. The Articles of Association provides for a minimum of three trustees and no maximum. The trustees are also responsible for the appointment of new members.

New trustees undergo an induction to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the decision making processes and the recent performance of the charity. They meet key employees and the other trustees.

Organisational policy

The trustees meet every month. The general manager is appointed to manage the day to day operations of the charity. To facilitate effective operations, the general manager has delegated authority, within the terms of delegation approved by the trustees, for operational matters including finance and employment.

Risk assessment policy

The trustees have worked with staff to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04046637 (England and Wales)

Registered Charity number

1083852

Registered office

64 Kingsmead FARNBOROUGH Hampshire GU14 7SL

Page 2

FARNBOROUGH CHRISTIAN OUTREACH

REPORT OF THE TRUSTEES for the year ended 31st July 2021

Trustees

K B Fontana (resigned 16.12.21) C M Mason J R D Edwards D R Palmer S M Smith G Dorey (appointed 7.3.22)

Independent Examiner

HPCA Limited Chartered Accountants Station House Connaught Road Brookwood Woking Surrey GU24 0ER

Approved by order of the board of trustees on 22nd April 2022 and signed on its behalf by:

C M Mason - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FARNBOROUGH CHRISTIAN OUTREACH

Independent examiner's report to the trustees of Farnborough Christian Outreach ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st July 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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.

Lance Redman FCCA FCA For and on behalf of HPCA Limited Chartered Accountants Station House Connaught Road Brookwood Woking Surrey GU24 0ER

22nd April 2022

Page 4

FARNBOROUGH CHRISTIAN OUTREACH

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31st July 2021

Unrestricted
Restricted
funds
funds
Notes
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
34,504
-
Charitable activities
Bookshop
55,138
-
Other income
15,585
-
Total
105,227
-
EXPENDITURE ON
Charitable activities
Bookshop
102,677
-
NET INCOME
2,550
-
RECONCILIATION OF FUNDS
Total funds brought forward
68,708
177
TOTAL FUNDS CARRIED FORWARD
71,258
177		 2021
Total
funds
£
34,504
55,138
15,585
105,227
102,677
2,550
68,885
71,435		 2020
Total
funds
£
56,875
75,977
10,771
143,623
137,426
6,197
62,688
68,885

The notes form part of these financial statements

Page 5

FARNBOROUGH CHRISTIAN OUTREACH

BALANCE SHEET

31st July 2021

Unrestricted
Restricted
funds
funds
Notes
£
£
FIXED ASSETS
Tangible assets
7
882
-
Investments
8
1
-
883
-
CURRENT ASSETS
Stocks
9
70,840
-
Debtors
10
8,260
-
Cash at bank and in hand
10,857
177
89,957
177
CREDITORS
Amounts falling due within one year
11
(19,582)
-
NET CURRENT ASSETS
70,375
177
TOTAL ASSETS LESS CURRENT
LIABILITIES
71,258
177
NET ASSETS
71,258
177
FUNDS
14
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2021
Total
funds
£
882
1
883
70,840
8,260
11,034
90,134
(19,582)
70,552
71,435
71,435
71,258
177
71,435		 2020
Total
funds
£
5,020
1
5,021
72,402
8,327
11,050
91,779
(27,915)
63,864
68,885
68,885
68,708
177
68,885

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st July 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st July 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 6

FARNBOROUGH CHRISTIAN OUTREACH

BALANCE SHEET - continued

31st July 2021

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 22nd April 2022 and were signed on its behalf by:

C M Mason - Trustee

The notes form part of these financial statements

Page 7

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31st July 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

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

Improvements to property - Straight line over 20 years Plant and machinery - Straight line over 5 years Fixtures and fittings - Straight line over 6 years

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Funds

General unrestricted funds represent the funds of the charity that are not subject to any restrictions regarding their use and are available for application on the general purposes of the charity. Funds designated for a particular purpose by the trustees are also unrestricted.

Restricted funds are those subject to specific trusts, which may be declared by the donor or with their authority. The restricted funds of the charity are restricted income funds which are expendable at the discretion of the trustees in furtherance of some particular aspects of the activities of the charity.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

continued...

Page 8

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31st July 2021

2. SUPPORT COSTS

----- Start of picture text -----
|||||| |---|---|---|---|---| |Governance| |Finance|Other|costs|Totals| |£|£|£|£| |Bookshop|26|1,125|2,850|4,001| |Support costs, included in the above, are as follows:| |2021|2020| |Total| |Bookshop|activities| |£|£| |Legal and professional|26|928| |Sundries|1,125|1,125| |Independent examiner's fees|2,850|2,725| |4,001|4,778| |3.|NET INCOME/(EXPENDITURE)| |Net income/(expenditure) is stated after charging/(crediting):| |2021|2020| |£|£| |Independent examiner's fees|2,850|2,725| |Depreciation - owned assets|4,535|4,970|

----- End of picture text -----

4. TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

There were £13 of trustees' expenses paid for the year ended 31st July 2021 (Nil in 2020).

5. STAFF COSTS

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

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |Retail and administration|4|2|

----- End of picture text -----

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

continued...

Page 9

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31st July 2021

6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Restricted Total
funds funds funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 56,875 - 56,875
Charitable activities
Bookshop 75,977 - 75,977
Other income 10,771 - 10,771
Total 143,623 - 143,623
EXPENDITURE ON
Charitable activities
Bookshop 137,426 - 137,426
NET INCOME 6,197 - 6,197
RECONCILIATION OF FUNDS
Total funds brought forward 62,511 177 62,688
TOTAL FUNDS CARRIED FORWARD 68,708 177 68,885
7. TANGIBLE FIXED ASSETS
COST Improvements
to
property
£		 Plant and
machinery
£		 Fixtures
and
fittings
£		 Totals
£
At 1st August 2020 85,497 15,331 25,566 126,394
Additions - 397 - 397
At 31st July 2021 85,497 15,728 25,566 126,791
DEPRECIATION
At 1st August 2020 81,359 14,449 25,566 121,374
Charge for year 4,138 397 - 4,535
At 31st July 2021 85,497 14,846 25,566 125,909
NET BOOK VALUE
At 31st July 2021 - 882 - 882
At 31st July 2020 4,138 882 - 5,020

continued...

Page 10

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31st July 2021

8. FIXED ASSET INVESTMENTS

8. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1st August 2020 and 31st July 2021 1
NET BOOK VALUE
At 31st July 2021 1
At 31st July 2020 1
There were no investment assets outside the UK.
The company's investments at the balance sheet date in the share capital of companies include the following:
The Triangle Cafe Limited
Registered office:
Nature of business: Coffee shop %
Class of share: holding
Ordinary 100
Aggregate capital and reserves 31.7.21
£
(37,116)		 31.7.20
£
(42,579)
Profit/(loss) for the year 5,464 (11,654)
9. STOCKS
Stocks 2021
£
70,840		 2020
£
72,402
10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors 2021
£
-		 2020
£
1,154
VAT 3,127 1,984
Prepayments and accrued income 5,133
8,260		 5,189
8,327

continued...

Page 11

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31st July 2021

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021 2020
£ £
Other loans (see note 12) 3,500 3,500
Trade creditors 11,425 20,698
Social security and other taxes 224 212
Other creditors 955 456
Accruals and deferred income 3,478 3,049
19,582 27,915
12. LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand: 2021
£		 2020
£
Other loans 3,500 3,500
13. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
Within one year 2021
£
15,000		 2020
£
15,000
Between one and five years 32,500 47,500
47,500 62,500
14. MOVEMENT IN FUNDS
Unrestricted funds At 1.8.20
£		 Net
movement
in funds
£		 At
31.7.21
£
General fund 63,663 6,714 70,377
Fixed Asset Fund 5,045 (4,164) 881
Restricted funds 68,708 2,550 71,258
Buy a bulb 177 - 177
TOTAL FUNDS 68,885 2,550 71,435

continued...

Page 12

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31st July 2021

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Fixed Asset Fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Fixed Asset Fund
Restricted funds
Buy a bulb
TOTAL FUNDS		 Incoming
Resources
Movement
resources
expended
in funds
£
£
£
105,227
(98,513)
6,714
-
(4,164)
(4,164)
105,227
(102,677)
2,550
105,227
(102,677)
2,550
Net
movement
At
At 1.8.19
in funds
31.7.20
£
£
£
52,329
11,334
63,663
10,182
(5,137)
5,045
62,511
6,197
68,708
177
-
177
62,688
6,197
68,885

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Fixed Asset Fund
TOTAL FUNDS		 Incoming
Resources
Movement
resources
expended
in funds
£
£
£
143,622
(132,288)
11,334
1
(5,138)
(5,137)
143,623
(137,426)
6,197
143,623
(137,426)
6,197

continued...

Page 13

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31st July 2021

14. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Net
movement At
At 1.8.19 in funds 31.7.21
£ £ £
Unrestricted funds
General fund 52,329 18,048 70,377
Fixed Asset Fund 10,182 (9,301) 881
Restricted funds 62,511 8,747 71,258
Buy a bulb 177 - 177
TOTAL FUNDS 62,688 8,747 71,435

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Fixed Asset Fund
TOTAL FUNDS		 Incoming
Resources
Movement
resources
expended
in funds
£
£
£
248,849
(230,801)
18,048
1
(9,302)
(9,301)
248,850
(240,103)
8,747
248,850
(240,103)
8,747

Unrestricted funds

The fixed asset fund is a designated fund and represents the net book value of fixed assets of the charity, for the purpose of freeing reserves that are not available for expenditure. Transfers relate to assets capitalised during the year, and outgoing resources represent depreciation charged during the year.

Restricted Fund

The Buy a Bulb fund is as a result of an appeal to pay for the new LED lights installed in the bookshop to enhance the displays.

continued...

Page 14

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st July 2021

15. RELATED PARTY DISCLOSURES

The charity owns the entire share capital of The Triangle Cafe Limited (referred to as the cafe), a limited company registered in England and Wales. This year no management charges (2019: £nil) were passed onto the cafe.

The charity did not receive a donation from the cafe this financial year (2020: £nil).

At the end of the year, a balance of £39,242 was due from the cafe (2020: £48,782). In view of the fact The Triangle Cafe Limited was insolvent as at 31st July 2021, a reversal of provisions of £9,403 against this debt has been made in the accounts of Farnborough Christian Outreach (2020: provision of £10,815).

Page 15

FARNBOROUGH CHRISTIAN OUTREACH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31st July 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations and membership fees
Charitable activities
Bookshop sales
Other income
Management charge
Other income Other income
Grant Income
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Rates and water
Insurance
Light and heat
Telephone and internet
Postage and stationery
Advertising
Sundries
Purchases
Rent
Repairs and maintenance
Dues and subscriptions
Depn improvements to property
Depn plant and machinery
Computer equipment
Bank charges and interest
Credit card commission
Credit card costs
Provision against subsidiary
Support costs
Finance
Legal and professional
Other
Sundries		 2021
£
34,504
55,138
3,010
1
12,574
15,585
105,227
18,485
(34)
1,947
4,876
3,506
959
266
171
39,380
16,096
15,969
675
4,138
398
-
346
487
414
(9,403)
98,676
26
1,125		 2020
£
56,875
75,977
-
15
10,756
10,771
143,623
17,189
604
2,103
5,334
3,556
1,835
312
53
57,765
9,792
16,593
114
4,275
695
168
416
609
420
10,815
132,648
928
1,125

This page does not form part of the statutory financial statements

Page 16

FARNBOROUGH CHRISTIAN OUTREACH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31st July 2021

Other
Governance costs
Independent examiner's fees
Total resources expended
Net income		 2021
£
2,850
102,677
2,550		 2020
£
2,725
137,426
6,197

This page does not form part of the statutory financial statements

Page 17